Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Sustainability Report
Hoshine Silicon Industry
Industry Co.,
Co., Ltd.
Ltd. 2025
Sustainability Report
Report
Contents
About This Report 01 Embedding Compliance as Leveraging the “Silicon”
the Foundation to Safeguard Chain to Empower Value
Message from the Chairman 02 Corporate Growth Co-Creation
Corporate Governance 09 Product Quality 38
About Hoshine Silicon 03 ESG Governance 12 Customer Service 41
Compliant Management 15 R&D Innovation 44
Company Profile 03
Business Ethics 17 Sustainable Supply Chain 49
Business Layout 04
Information Security 19
Corporate Culture 06
Honors and Awards 07
Advancing with Green Fostering People-Centered
Momentum to Strengthen the Growth to Build a Better
Ecological Baseline Community Together
Appendixes
Environmental Governance 21 Employee Rights and Interests 52
Core Production Base 64 Climate Action 23 Training and Development 55
Key Performance Table 65 Resource Utilization 26 Occupational Health and Safety 57
Indicator Index Table 71 Pollution Prevention and Control 30 Social Contribution 62
Chemical Management 35
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
About This Report
This is the second sustainability report (hereinafter referred to as “this report” or “ESG report”) issued by Hoshine Silicon Industry Co., Ltd. (hereinafter referred to as “Hoshine Silicon,” “the
Company,” or “we”). It aims to elaborate on the Company’s institutional development and ESG performance, while objectively disclosing its sustainability management and achievements in
response to the expectations of stakeholders and the public.
Reporting Scope
Business scope: This report covers the Company's main businesses. For detailed business information, please refer to the Hoshine Silicon 2025 Annual Report .
Time scope: This report primarily covers the period from January 1, 2025 to December 31, 2025, consistent with the Company’s financial reporting period. To ensure in-
formation integrity and continuity, certain items may extend beyond this time frame.
Report release cycle: this is an annual report.
Preparation Basis
This report is prepared in accordance with the Guidelines No. 1 of Shanghai Stock Exchange(SSE) for Self-Regulation of Listed Companies - Standardized Operations,
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (Trial), and others, while also referencing the United Na-
tions Sustainable Development Goals (SDGs). This report includes a detailed index of guidelines in the final section for readers' quick consultation.
Information Sources
The information and data in this report are sourced from the Company's internal official documents, internal statistical materials, and publicly available information. Un-
less otherwise specified, all monetary amounts in this report are denominated in Chinese Renminbi (RMB).
Reliability Assurance
All content disclosed in this report has been reviewed and approved by the Board of Directors of Hoshine Silicon. The Company's Board of Directors and all directors as-
sure this report is free of false records, misleading statements, or material omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of
its content.
Report Access
You can visit our official website (https://hoshinesilicon.com/) to browse or download the electronic version of this report, which is available in both Chinese and English.
In the event of any discrepancy, the Chinese version shall prevail.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Message from the Chairman
Strengthening modern corporate governance to self-discipline and coordinated development across the
support long-term, sustainable development. In sector, working to improve supply-demand dynamics
ture under the leadership of the Board of Directors and technological advancement and refined management,
the Strategy and Sustainability Committee, with envi- we are committed to overcoming the challenges of
ronmental, social, and governance considerations inte- price war and building enduring core competitiveness.
grated into our decision-making and risk management
processes. Upholding the highest standards of business Deepening shared development to foster inclusive
ethics, we have reinforced anti-corruption practices and and harmonious growth. In 2025, we continued to
fair competition, fostering a corporate culture defined cultivate a fair, inclusive, and safe workplace, providing
by transparency, accountability, and trust, while creating competitive compensation and broad development
sustainable value for investors, partners, and all stake- opportunities so that every employee can realize their
holders. full potential. Operating in regions rich in cultural di-
versity, we promote ethnic unity and local employment.
Advancing green development to safeguard long- Through initiatives such as the Hoshine Charity Foun-
term ecological sustainability. Anchored in our Sil- dation, we continue to give back to society—supporting
icon-based New Materials Integrated Green Circular education, community development, and disaster re-
Economy Industrial Park, we have continued to refine a lief—bringing our mission of “creating a better life” into
model where industry and nature coexist in harmony. meaningful action.
In a time when the global energy landscape is acceler- Through sustained investment in energy conservation
ating toward low-carbon transformation and sustain- and environmental protection, we have unlocked fur- Looking ahead, the horizon is vast and full of promise.
able development has become a shared commitment ther carbon reduction potential via waste heat recovery, Hoshine Silicon will remain committed to its mission
worldwide, silicon-based advanced materials are play- clean energy substitution, and process optimization. of concentrating on silicon-based materials to create
ing an increasingly vital role. As a critical foundation for Emissions are rigorously controlled, with several indica- a wonderful life. We will continue striving toward our
strategic emerging industries—including photovoltaics, tors outperforming national standards. We have estab- vision of becoming a world-renowned enterprise in
semiconductors, and advanced manufacturing—their lished a carbon emission reduction roadmap and are silicon-based advanced materials—distinguished by op-
significance continues to grow. Over the past year, actively exploring full lifecycle carbon footprint manage- timal resource allocation, strong competitiveness, and
Hoshine Silicon has moved forward with resilience amid ment, contributing our efforts to the global response to enduring vitality. Driven by continuous technological
profound industrial change, guided by our enduring climate change. innovation and powered by the dual engines of digital
belief that “success comes from persistence”. We have intelligence and green development, we will further
continued to embed sustainability deeply into our strat- Driving innovation to reshape industry value and strengthen the resilience of our entire industrial chain.
egy and across every aspect of our operations, leverag- enable high-quality growth. In 2025, we further In doing so, we aim to contribute greater momentum to
ing the strength of our fully integrated industrial chain increased R&D investment and strengthened our the advancement of silicon-based materials and green
and continuous innovation. We have actively advanced innovation system. While consolidating our global energy worldwide, while supporting China’s moderniza-
the “AI + Manufacturing” initiative, driving intelligent leadership in silicon metal and silicone materials, we also tion and global sustainable development.
and green transformation in production, and striving to achieved key breakthroughs in emerging fields such as
deliver efficient, low-carbon, and reliable silicon-based third-generation semiconductor silicon carbide (SIC). As Hoshine Silicon Industry Co., Ltd.
products and solutions to customers worldwide. an industry leader, we take an active role in promoting Chairman Luo Liguo
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
About Hoshine Silicon
Company Profile
Hoshine Silicon Industry Co., Ltd. was invested and established by Ningbo
Hoshine Group in 2005 and successfully listed on the main board of the
Shanghai Stock Exchange in 2017. It is a company with the most complete sil-
icon-based whole industrial chain in the world, the pioneer of the integrated
green circular economy model of silicon-based new materials, and the leader
of the holistic solution for green energy resources.
The Company has set up digital intelligent manufacturing bases in Xinjiang,
Zhejiang, Inner Mongolia, Sichuan and other places, and has high-tech re-
search and development centers in Shanghai and Hainan. Its businesses
mainly cover multiple fields such as energy, silicon metal, silicone, carbon,
new materials, third-generation semiconductor silicon carbide (SIC), the whole
photovoltaic (PV) industrial chain, and energy storage. Among them, the pro-
duction capacities of silicon metal and silicone have ranked first in the world
for many consecutive years. The scientific research strength of emerging
businesses such as SIC ranks firmly in the first echelon of the industry. The re-
lated products are widely used in various fields such as aerospace and military
industry, electronic communication, medical and health care, and automobile
manufacturing, and its partners are all over the world.
Hoshine Silicon focuses on technological innovation, digital and intelligent
manufacturing, green development, talent development, process transfor-
mation, and organizational upgrading. By leveraging the scale and synergy
of a whole silicon-based industrial chain, the Company continues to expand
the industrial footprint and enhance technological capabilities. These efforts
support the development of the global silicon-based new materials and green
energy sectors, contribute to national strategic priorities, and help create a
better life for people.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability
Report
Business Layout
Hoshine Silicon pioneered the whole silicon-based industrial chain and leads in providing comprehensive green energy solutions. The whole industrial chain offers efficiency, safety, and
traceability, enhanceing product quality and meeting customer needs with greater precision through effective management and control across all stages of the value chain.
Aligning with national green development goals, Hoshine Silicon promotes the large-scale adoption of clean energy and zero-carbon technologies. The Company plays a key role in advanc-
ing carbon peak and carbon neutrality targets, while contributing to climate change mitigation.
Green cycle silicon – based whole industry chain
From supplying electricity via thermal power plants to manufacturing end-use silicon-based products, and from vertically integrating energy and raw material
self-produced
supply to achieving self-sufficiency with mutual empowerment, this model has established a comprehensive ecosystem spanning the entire industrial chain.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Headquartered in Zhejiang Province, we
have established production bases in Ji-
axing, Zhejiang Province; Luzhou, Sichuan
Province; Shihezi, Shanshan, Kuitun, and
Urumqi, all in the Xinjiang Uygur Autono-
mous Region; Heihe, Heilongjiang Province;
and Zhaotong, Yunnan Province. We also
possess R&D centers in Shanghai and Hain-
an Province.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Corporate Culture
Success comes from persistence Our Spirit Employing People-oriented, morality first
Concept
Concentrate on the silicon-based Talent Let every employee play
Our Mission
materials to create a wonderful life Concept unlimited possibilities
Commited to be the world- Survive by quality, promote
renowned enterprise with most Management development by science and
Our Vision
reasonable resource allocation, Concept technology, take customers as
most influential and vitality the foundation
Create a platform for employees
Corporate Operation Create benefits for customers
Values Concept Create wealth for shareholders
Create value for society
Honesty and Integrity Dedication and Aggressiveness Green Innovation Win-win Cooperation
Abide by the national laws and company Professional and persistence, with the spirit Leading innovation with green With an open and win-win attitude, we
system, never violate the high-voltage of craftsmanship, constantly improving; environmental protection, everyone can share industry growth with our partners;
line of the enterprise; be a person with diligence and efficient execution; courage innovate, everything can be innovative; we have a big vision and can work together
morality first, honesty and integrity, words to take responsibility, take the initiative embrace change, dare to break through, in a team to achieve our goals; we are
and deeds; requite kindness with kindness, to meet new challenges and tasks; hold dare to try, not afraid of failure, and good willing to share our expertise and work
requite resentment with justice; uphold curiosity, continuously improve learning, at summing up experience and grow with our colleagues
fairness, honesty and trustworthiness; use keep in mind the original heart and
positive forces to have a positive impact on mission, and pursue excellence
the surroundings
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Honors and Awards
Month Honors and awards Month Honors and awards
Ministry of Industry and Information
Hurun Research Institute
Technology of the People’s Republic of China
November
Ranked No. 153 on the “Hurun China 500 Recognized as a “National Manufacturing
Most Valuable Private Companies 2024” list Single Champion Enterprise” (9th batch)
March
China Chemical Enterprise Management Association
China Enterprise Evaluation Association Ranked No. 36 among the “2025 Top 500
Petroleum and Chemical Enterprises by Sales
Ranked No. 141 on the “2024 China Top
Ranked No. 88 among the “2025 Top 500
Petroleum and Chemical Enterprises by Sales
Fortune Revenue (Comprehensive)”
July Ranked No. 490 on 2025 Fortune China Ranked No. 1 among the “2025 Top 100 Specialty
December
Southern Finance
China Listed Company Industry Development Forum
“2025 Outstanding ESG Practitioner – Listed Company”
“2025 Future Industry Star – Listed Company (Future
Materials)”
September Time Weekly
“2025 High-Quality Development Listed Company”
Jiemian News
Cailian Press
Materials
“Emerging Advanced Manufacturing
Enterprise”
Weekly on Stocks
Securities Times
October President of Hoshine Silicon Luo Liguo received the
Chairman Luo Liguo awarded “ESG
“Crystal Ball Award – Best President of a Listed Company”
Pioneer of Listed Companies”
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Embedding Compliance as the Foundation
to Safeguard Corporate Growth
Aligning with the SDGs
Material topics
Corporate governance, ESG governance, Risk management, Business ethics, Data
security and customer privacy protection
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Corporate Governance Committee Composition Responsibilities
Hoshine Silicon regards sound governance as the cornerstone of steady development. 3 members,
Reviews financial information and
The Company strictly complies with China’s Company Law , Securities Law , and the including 2
oversees internal and external
Audit Committee
Code of Corporate Governance for Listed Companies , and continues to refine the gov- independent
audits and internal controls
ernance structure and institutional framework. We promote transparent and prudent directors
management through an internal control system with clear boundaries, well-defined re-
sponsibilities, and standardized operations. This approach supports the creation of long-
term value for shareholders, customers, employees, and other stakeholders.
Studies long-term strategy,
Strategy and
major investments, and ESG-
Governance structure 5 members
Sustainability
related issues, and provides
Committee
The Company continuously optimizes the governance framework, with the Shareholders’ recommendations
Meeting serving as the highest authority and the Board of Directors acting as the core
decision-making body. Four specialized committees operate under the Board, compris-
ing a modern governance system with tiered authority, complementary functions, and
effective checks and balances. Selects, reviews, and
Nomination
Committee
The Shareholders’ Meeting exercises decision-making authority on major issues in ac- management
cordance with the law, including the election of directors, review of Board reports, and
approval of profit distribution plans. The Board of Directors is accountable to the Share-
holders’ Meeting. It consists of nine directors, including three independent directors,
with one President, one Vice President, and one employee representative director. The
Board executes resolutions of the Shareholders’ Meeting and formulates business strat- Develops performance evaluation
egies and operational plans.
Remuneration
standards and compensation
and Appraisal
policies for directors and senior
In line with the revised Company Law and related regulations, the Company adjusted
Committee
management
its governance structure in the year 2025. The Board of Supervisors is no longer main-
tained, with the Audit Committee of the Board assuming its responsibilities, and related
policies have been updated accordingly.
Shareholders’ Meeting
Board of Directors Further reading
Audit Strategy and Remuneration and Nomination
For corporate governance policies, committee responsibilities, and Board
Committee Sustainability Committee Appraisal Committee Committee
member profiles, please refer to the Hoshine Silicon 2025 Annual Report or
visit our official website: https://hoshinesilicon.com/
Hoshine Silicon governance structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Executive compensation
Shareholders’ right protection
To improve the mechanisms and procedures of compensation decision-making, the
Company has established a standardized and transparent compensation management
system that balances incentives and accountability for directors and senior management
Strictly comply with notification timelines for Shareholders’ Meetings;
with ongoing enhancements. The Remuneration and Assessment Committee develops
meeting notices include detailed background information and key points of all
compensation proposals based on corporate strategy, market benchmarks, and perfor-
proposals, allowing sufficient time for informed decision-making
mance outcomes. Regular disclosure of executive compensation information ensures
shareholders’ right to know and reinforces transparency in corporate governance. Provide both on-site and online voting options, ensuring equal participation
convenience, particularly for minority shareholders in remote locations
The Company adopts a “base salary + performance-based pay + mid- to long-term
incentives” structure for management, tightly aligning performance targets with overall Maintain open communication channels—including Shareholders’ Meetings,
strategy and forming a full-cycle management loop. Sustainability metrics are integrat- investor hotlines, email, and interactive platforms—to receive and respond to
ed into performance evaluations, with continuous optimization driven by external ESG inquiries and suggestions
ratings to strengthen incentives and align the core team with long-term development
goals.
Further reading
For details on compensation of directors and senior management during the
Protection of minority shareholders
reporting period, please refer to the Hoshine Silicon 2025 Annual Report
Establish a robust internal control system and strictly regulate external
guarantees to prevent risks that may harm the Company and minority
shareholders
Information disclosure and investor Offer convenient participation channels, such as online voting and
relations management teleconferencing, at Shareholders’ Meetings and earnings briefings to ensure
voting and speaking rights
Protection of shareholders’ rights
Conduct separate vote counting and disclosure for minority shareholders on
The Company places shareholders’ rights, especially those of minority shareholders,
major issues that may affect their interests to boost their influence
among its highest priorities. By continuously improving governance systems and proce-
dures, we ensure that shareholders’ legal rights are fully respected and realized in both
daily operations and major decision-making processes.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Information disclosure and investor relations
The Company strictly complies with China’s Securities Law , the Administrative Measures
for Information Disclosure of Listed Companies, and relevant rules of the Shanghai Stock
Exchange. Through systematic and standardized information disclosure and two-way
communication, we strengthen market understanding and recognition, build long-term,
stable, and trust-based investor relationships, and enhance governance transparency.
Publishes periodic reports and ad Maintains investor hotline, fax, and
hoc releases in designated media email, and actively utilizes platforms
and on the official website in a such as SSE e-interaction with a
timely and complete manner timely response mechanism
Statutory disclosure Regular communication
channels platforms
Targeted communication Proactive
on major events engagement
Regularly holds earnings briefings,
Engages investors in advance through
investor meetings, and roadshows;
multiple channels to gather market
organizes site visits and roundtable
feedback
discussions
Hoshine Silicon multi-dimensional communication channels
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
ESG Governance
Hoshine Silicon integrates sustainability deeply into corporate strategies. The Company has established a clear and transparent ESG governance framework, while advancing ESG innovation
and practical initiatives. These efforts continue to improve the systemization, scientific rigor, and effectiveness of ESG management. Together with stakeholders, we aim to promote a bal-
anced and mutually reinforcing relationship between responsible operations and business performance.
ESG governance system
The Company continuously strengthens top-level ESG design and governance by establishing a top-down, well-structured framework with clearly defined roles. The Board of Directors,
the Strategy and Sustainability Committee, and the ESG Task Force jointly advance ESG-related work, ensuring effective coordination across decision-making, planning, and execution, and
forming a standardized, institutionalized ESG management system.
Board of Directors
Decision- Reviews sustainable development and ESG-related risks and materiality issues
making level
Reviews and approves sustainable development and ESG strategies, policies, and targets,
and oversees progress
Reviews and approves sustainable development and ESG-related disclosures and reports
Strategy and Sustainability Committee
Organiza- Reviews, evaluates, and oversees sustainable development and ESG-related issues
tional level Reviews sustainable development and ESG-related reports
ESG Task Force
Implements sustainable development and ESG decisions and action plans, and tracks
performance and target progress
Prepares sustainability reports th
Execution
level The Securities Department serves as the leading sector for ESG coordination. More
than 20 departments and subsidiaries assign designated representatives as members
Responsible for ESG topics within respective departments or subsidiaries, ensuring the
implementation and categorization of relevant ESG data
Hoshine Silicon ESG governance structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Stakeholder engagement
The Company has established a multi-level and regular stakeholder communication mechanism. Through listening and interaction, stakeholder concerns are translated into key inputs for
improving governance and operations. Due diligence processes incorporate stakeholder feedback as an important source of information. This approach supports the identification of sus-
tainability-related impacts, risks, and opportunities. Through targeted responses and responsible practices, the Company collaborates with stakeholders to advance a sustainable future.
Stakeholders Expectations and demands Response method
Government Compliant operation GHG emissions Policy directives Information submissions
and regulatory
authorities Anti-corruption and integrity Industry cooperation and development Work reports On-site inspections
Shareholders Compliant operation Product quality and safety Investor exchange conferences Response to shareholder
and investors Corporate ESG governance Product innovation and R&D Reception of shareholder visits hotline consultations
Customers
Product quality and safety Complaint mechanism and handling Phone communications
Product innovation and R&D Information security and privacy protection Periodic follow-ups
Suppliers and Supplier management Industry cooperation and Tender meetings Collaborative exchanges
partners Sustainable procurement development Supplier evaluation processes Industry forums
Employees
Occupational health and safety Employee rights and benefits Internal communication platforms Employee visits and care
Talent training and development Diversity, equality, and inclusion Employee satisfaction surveys
Local Community development Pollutant and waste management Community activities
communities Water resources management Volunteer services
Media and Company website Public opinion monitoring
public
Charity Transparent disclosure
Daily communications and responses Information disclosures
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Materiality assessment
In 2025, Hoshine Silicon conducted a double materiality assessment in accordance with the Shanghai Stock Exchange guidelines, including the Guidelines No. 14 of Shanghai Stock Ex-
change for Self-Regulation of Listed Companies – Sustainability Report (Trial) and Guidance No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Re-
port Preparation . The Company prioritizes topics with high-impact materiality and discloses topics with financial materiality based on the four-pillar framework.
Context analysis of business
activities and relationships In 2025, we identified 21 material topics, including 4 that are of double materiality, 1
Conduct systematic review of business that is financially material only, and 7 that are impact material only.
operations, industry positioning, strategic
layout, and business model; identify
sustainability-related impacts, risks, and
opportunities
Pollutant and waste
Chemical management
Topic identification management
R&D and
innovation
Identify 21 topics based on SSE guidelines; Product and
Energy use
select 21 ESG topics through peer Employee rights service safety
and interests and quality
benchmarking and business context analysis protection Occupational
Supply chain health and
management Environmental safety
compliance
Impact materiality
management
Materiality assessment
Business Data security and
ethics customer privacy
Define criteria for both financial and impact protection
materiality, with scoring ranges and thresholds Resource
management
Employee
Impact materiality evaluation: assess positive development
and negative impacts of each topic; conduct Risk management
stakeholder surveys through questionnaires Diversity and
inclusion
Corporate
Community Circular governance Climate change
Financial materiality evaluation: identify risks engagement and economy response
philanthropy
and opportunities; score topics based on ESG governance Ecosystem and
expert judgment and financial analysis biodiversity
protection
Reporting Financial materiality
Consolidate assessment results into a double
materiality matrix; submit results to the Board Hoshine Silicon double materiality matrix diagram
for review and disclose results in sustainable
development report
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Compliant Management
Hoshine Silicon adheres to a risk management philosophy of “prudent operations with integrated prevention and control”, with the Board of Directors serving as the core leadership body.
The Company has established a three-line defense framework, supported by institutionalized management, regular risk identification and assessment, and audit oversight, to enhance the
systematic and effective management of risks and safeguard stable operations.
Compliant operations
The Company has built a comprehensive compliance management framework that spans strategy, execution, and oversight. This system ensures that all business activities comply with ap-
plicable laws, regulations, industry standards, and internal policies, providing a strong foundation for sustainable development.
Compliance management system
Define the roles of the Board, management, Implement regular self-assessment and
risk control center, and business sectors in evaluation through the Internal Control
compliance management Evaluation Promotion System , ensuring
Governance compliance requirements are updated and
The Audit and Supervision Department acts structure effectively implemented alongside business
as an independent oversight body, handling changes
whistleblowing reports, investigating
violations, and reporting to the Board Enforce the Regulations on Disciplinary
Punishment , with graded actions including
warnings, financial penalties, termination, and
Establish a comprehensive system of legal referral
policies based on the Guidelines for 02 03
Policy Management , which covers anti-
Management
fraud, management on conflict of interest Policy framework
mechanisms
and accountability, and internal control
evaluation, providing clear behavioral
guidelines for employees
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Risk management Risk management measures in 2025
We continue to enhance our top-level design on risk management and improve the overall framework, identifying
Risk identification
and evaluating major risks by assessing both the likelihood of occurrence and the potential impact on corporate
objectives. For identified significant risks, the Company formulates response strategies and conducts ongoing
Departments and plants conduct annual self-assessments
monitoring. In 2025, no disruptive risk events occurred. Internal controls showed no material or significant defi-
using tools such as risk evaluation and process analysis;
ciencies.
identify operational, market, and compliance risks;
complete the Risk Investigation Checklist and develop
control measures
Internal control and audit departments conduct
Risk Management Department independent reviews to ensure full coverage
Closed-loop remediation
Internal control Law and compliance Audit and
supervision Address identified internal control deficiencies and
violations in accordance with Regulations on Disciplinary
Internal control Legal affairs Punishment and Accountability Management Measures ,
Audit
system
enforce strict accountability, and track the implementation
Risk identification, assessment, Legal advisory and risk Establishment of supervision and of corrective actions, establishing a closed-loop
and response assessment evaluation systems
management cycle covering identification, assessment,
Development and improvement Legal document management Establishment of supervision and
response, monitoring, and continuous improvement
of internal control systems Litigation and arbitration evaluation policies
Process optimization and handling Risk identification and confirmation
clarification of authority Intellectual property protection Reporting and communication
Internal audit
Risk monitoring Compliance
Supervision Implement a dual-level evaluation mechanism combining
management
Party integrity and discipline “headquarters review” and “department/plant self-
Risk monitoring and reporting Development of compliance
Compliance analysis and gap manuals
development assessment”
analysis Disciplinary review and
Compliance risk alerts
investigation
Conduct annual audits across key areas, including exit
Remediation oversight and Regular compliance inspections
Inspection and oversight audits for key personnel, OA shared account management,
closed-loop management and corrective actions
Whistleblowing management and quality feedback, loan management, fixed asset
Internal compliance training
corrective action oversight management in Luzhou Hoshine, outsourced contracts in
the Energy Business Department, and workplace safety in
the Shihezi industrial park
Hoshine Silicon risk management structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Business Ethics
The Company is committed to fostering a culture of integrity, where honesty is valued and misconduct is rejected. We firmly oppose corruption, bribery, and unfair competition through our
robust governance structure, well-established policies, comprehensive training, and accessible supervision channels. These efforts support a transparent, fair, and ethical business environ-
ment.
Whistleblowing management Whistleblowing channels and handling procedures
Whistleblowing channels that are effective, secure, and accessible play a critical role in
identifying internal issues and addressing misconduct. They also protect the Company’s
interests and employees’ rights. We encourage employees and stakeholders to speak up The Audit and Supervision Department receives all reports,
with confidence and ensure that every report is handled carefully, fairly, and promptly. conducts preliminary reviews, and assigns investigations;
Investigation investigations shall follow principles of objectivity and fairness to
process ensure procedural compliance
Strictly protect the confidentiality of whistleblowers, with
Multi-channel reporting materials stored separately and accessible only to the
investigation team and Board members
DingTalk direct reporting
Whistleblower
Formulate the Regulations on Anti-Fraud Management in
Official WeChat account: “Clean Hoshine” protection
prohibiting retaliation; any verified retaliation will lead to
immediate termination of employment; criminal cases will be
Hotline: 183****0929 referred to judicial authorities
WeChat: hstousu
Email: hs_tousu@hoshinesilicon.com
Take appropriate disciplinary action against malicious or
Mailing address: Floors 23-24, Tower A, Hoshine Handling unfounded reports, based on the severity, to maintain a healthy
Building, No. 1988 East Beisanhuan Road, Cixi, malicious reporting environment
Ningbo, Zhejiang Province reports
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Anti-corruption and anti-bribery Case Hoshine Silicon conducted multi-location integrity and anti-fraud training
Hoshine Silicon adopts a zero-tolerance approach to corruption and bribery in any form.
Hoshine Silicon conducted integrity and anti-fraud training across multiple places,
The Company has established a comprehensive anti-corruption framework supported
including Shanshan, Luzhou, and Shihezi, from September to November 2025. The
by strong policies, strict controls, continuous training, and transparent oversight. Rel-
program covered all business segments and involved more than 1,000 employees.
evant information is shared, as required, with the China Enterprise Anti-Fraud Alliance
Through case analysis and regulatory interpretation, the training enhanced em-
and the Trust and Integrity Enterprise Alliance.
ployees’ understanding of fraud risks and consequences, and strengthened com-
pliance awareness and professional conduct.
Anti-corruption and anti-bribery requirements
Strict conduct Gift and hospitality
prohibitions management
Formulate the Regulations Enforce strict rules on gifts and
on Anti-Fraud Management hospitality: employees must
in prohibiting all forms of not accept gifts from business
misconduct, including accepting partners; if refusal is unavoidable,
bribes from suppliers or abusing the item, regardless of value,
positions for personal gain must be reported and handed
over to the Audit and Supervision
Department within 24 hours
Business partner Strict disciplinary
management measures
Extend anti-corruption Impose strict disciplinary actions
requirements across the value on verified cases of corruption
chain by requiring partners to and bribery in accordance with
sign the Commitment Letter for the Regulations on Disciplinary
Integrity Cooperation and the Punishment , including termination
Honest Bidding Commitment , of employment, recovery of illicit
and by establishing a supplier gains, compensation for economic
credit evaluation system losses, and referral to judicial
authorities in serious cases
Anti-fraud training and promotional activities
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Anti-unfair competition Key information security measures in 2025
Hoshine Silicon strictly complies with China’s Anti-Monopoly Law and the Law Against
Unfair Competition . The Company competes by advancing product and service quality, Data security management Cybersecurity protection
technological innovation, and management practices. The Company firmly opposes all
forms of unfair competition. Production and R&D: protect sensitive Basic protection: prohibit unauthorized
data such as raw material formulas, device access to office networks, deploy
Management requirements against unfair competition process parameters, equipment antivirus and encryption software, and
operation data, quality reports, implement strict controls over USB ports
Formulate the Regulations on Disciplinary Punishment and follow core R&D formulas, and patented Access control: implement role-based
principles of fact-based judgment, rule-based enforcement, technologies related to silicon metal, access control (RBAC) and full-process
Policy balanced discipline, fairness, and education, providing a basis for silicone, and silicon carbide audit tracking for critical systems and
framework addressing violations, including unfair competition Operation management: strictly sensitive data
manage employee personal data, Targeted initiatives: conduct vulnerability
Reinforce fair competition principles through monthly
financial data, contract records, and management campaigns with 201
onboarding and ongoing training, guiding employees, especially
strategic plans security vulnerabilities resolved during
Training and those in sales and marketing, to engage with competitors in
External collaboration: ensure the year; strengthen industrial control
communication a compliant manner and strictly prohibiting practices such as
information security regarding supplier system (ICS) cybersecurity to support
commercial defamation and trade secret infringement
qualifications, procurement pricing, smart manufacturing
Monitor compliance in competitive practices, initiate customer orders, and credit records Emergency preparedness: develop
investigations into suspected violations of fair competition, and detailed response plans covering
Monitoring and
enforce strict disciplinary actions in accordance with relevant scenarios such as network outages,
enforcement Information security awareness
regulations through routine supervision and targeted audits cyberattacks, data failures, and fire
incidents, and conduct regular drills
Enhance employee awareness through
Information Security
campaigns, specialized training, and
case studies; conduct five cybersecurity
drills and three training sessions during
Hoshine Silicon adheres to a guiding principle of “security as the foundation, prevention the year, improving employees’ ability
as the priority, technology as the safeguard, and governance as the framework”. The to identify and respond to common
Company has established a three-tier governance structure for cybersecurity and data threats
security, comprising a senior management-led Leading Group for Network Information
Security for overall coordination, the Digital Intelligence Center for day-to-day security
operations and technical support, and the Internal Control Department for oversight and
accountability.
We implemented policies such as the Information System Security Management Regula-
tions, Regulations on IT Equipment Management , and the Emergency Response Plan for
Network and Information Security . These measures ensure the safe and reliable opera-
tion of IT systems and infrastructure.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Advancing with Green Momentum to Aligning with the SDGs
Strengthen the Ecological Baseline
Material topics
Environmental compliance management, Climate change response, Pollutant and
waste management, Energy use, Resource management, Circular economy,
Ecosystem and biodiversity protection, Chemical management
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Environmental Governance
Built on the ISO 14001 environmental management systems, Hoshine Silicon has established a comprehensive environmental compliance framework across four dimensions: governance
structure, institutional system, oversight mechanism, and performance assurance. This integrated approach aligns environmental management with risk control and strategic development.
As of the end of the reporting period, 12 subsidiaries have obtained the ISO 14001 environmental management system certification. Two subsidiaries, namely Western Silicon Industry and
Alpha Semiconductor, have been awarded green factory certification. In 2025, the Company reported no material environmental violations.
Environmental management framework
Governance structure Institutional system
Establish a three-tier governance structure led by the Establish a three-tier institutional system comprising foundational
Board, managed by general managers of business divisions, policies, specialized procedures, and emergency response mechanisms:
and executed by heads of the Safety and Environment Define management objectives and responsibilities through foundational
Departments of each subsidiary; clearly define roles and policies such as the Environmental Protection Management System
responsibilities at each level to ensure effective top-down
Provide operational guidance through specialized procedures, including
coordination and execution
the Environmental Protection Facility Operation System and Monitoring
and Measurement Management Procedures
Specify response workflows and corrective actions through emergency
plans such as the Emergency Response Plan for Environmental
Emergencies
Oversight mechanism Performance assurance
Build a multi-layered oversight system integrating routine Incorporate key environmental indicators—including energy consumption,
supervision, targeted audits, and external review: water-processing efficiency, and pollutant emissions—into performance
Conduct routine inspections and on-site checks to ensure assessment with a weighting of no less than 20%, with results linked with
compliant operations and effective environmental facility compensation and promotion
performance
Carry out quarterly/annual audits to review policy
implementation, target achievement, and risk response
Engage third parties for environmental monitoring and
disclose ESG information to enhance transparency and
accountability
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Environmental management initiatives in 2025
Environmental risk control Digital management platform
Establish an environmental risk database integrating real-time Launch a production digital management platform to visualize
meteorological, water quality, and air data; apply AI-based full-process energy consumption and emissions data, supporting
analytics to predict risks and issue alerts up to 72 hours in advance scheduling optimization and cost reduction
Emergency management Awareness and capability building
Conduct regular environmental risk inspections and emergency Organize compliance training for senior management to
drills; complete six emergency drills during the year covering strengthen risk awareness at the decision-making level
scenarios such as leaks, fires, and wastewater exceedances Deliver targeted training on energy conservation, carbon
reduction, cleaner production, and compliant operations to
enhance professional capabilities
Throughout operations, we adhere to the principle of “respecting nature and prioritizing protection”. All production sites are located away from biosphere reserves and op-
erate under strict environmental controls, with no material impact on surrounding ecosystems or communities. Meanwhile, we shoulder our responsibilities in ecological
conservation by promoting restoration through vegetation planting and the closure of idle landfill areas. We also conduct regular environmental monitoring across plant sites
and surrounding areas to ensure ecological safety.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Climate Action
Hoshine Silicon actively responds to national goals of carbon peaking and carbon neutrality. Guided by the task We regularly update our management regulations, including
force on climate-related financial disclosures (TCFD) framework, we integrate climate-related considerations into the Administrative Measures of Carbon Emissions and Energy
operations and risk management, leveraging the whole value chain and circular development foundation to opti- Consumption Verification , to guide full-process carbon emis-
mize carbon management and advance the low-carbon transition, contributing to high-quality green development sions control and strengthen resilience to extreme weather
across the industry. risks. We implement a supervision and reporting mechanism
that combines routine internal monitoring with third-party
verification, alongside regular reporting and dedicated review
Governance meetings, to ensure effective execution and timely progress of
climate-related initiatives.
In the face of climate change, we have established a three-tier governance structure, covering decision-making,
organizational, and execution levels. By defining clear roles, responsibilities, and coordination mechanisms, we en-
hance the scientific rigor of decision-making and the efficiency of execution, ensuring the orderly implementation Strategy
of climate-related actions and continuous improvement in governance.
We systematically assess climate-related physical and tran-
Board of Directors sition risks across the full value chain, drawing on industry
Be responsible for supervising and reviewing climate change-related strategies, research, regulatory developments, peer benchmarking, and
annual policy management performance, and target progress external data analysis. We capture policy and market opportu-
Decision-
nities while mitigating risks through technological innovation,
making level Review the measures for addressing climate change submitted by the Strategy and
advancing initiatives such as energy mix optimization and
Sustainability Committee
low-carbon product development. By dynamically aligning
with evolving policy and technology trends, we strengthen
Strategy and Sustainability Committee climate resilience and balance economic and social value, en-
Identify, determine and assess the risks and importance of climate change issues, hancing our core capabilities against climate change.
assess external trends and potential risk opportunities, and reduce adverse impacts
on the Company
Organizational Supervise, evaluate and review the policies, management, performance and progress
level of relevant goals regarding climate change issues
Formulate and review the Company’s vision, goals and strategies related to climate
change, and actively communicate with the Board on optimizing response measures
ESG Task Force
Implement the Company’s decisions and deployments for addressing climate change,
follow up on the execution of climate change management measures, and follow up
Execution
on the progress of relevant performance and goal achievements
level
Responsible for internal communication and external liaison
Hoshine Silicon climate change governance structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Financial Time Influenced
Risk category Risk description Response measures
impact scope value chain
Higher Upstream Strengthen emergency response at production
Disrupted production/logistics continuity due to
direct Short value chain sites; enhance supply chain resilience
Acute extreme weather (snowstorms, sandstorms, heavy
production term Own Optimize resource reserves; diversify supply
rainfall)
costs operations channels
Physical Higher
Upgrade to low-energy technologies to meet
risk Constrained capacity expansion due to long-term direct/
Long Own consumption requirements
Chronic energy consumption policies; water scarcity in indirect
term operations Track and assess water scarcity risks on a regular
certain regions affecting operations production
basis
costs
Increased compliance costs due to policies such as Adapt to evolving policies; optimize capacity and
Higher
Policy and carbon trading and dual control of energy Medium Own product mix
compliance
legal Affected short-term capacity release due to industry term operations Implement energy-saving and carbon reduction
costs
regulations (capacity control, price discipline) measures; reduce compliance costs
Increased transition pressure and product Increase R&D investment; collaborate with research
competitiveness challenges due to industry shift Medium institutions and industry partners on low-carbon
Higher Own
Technology toward low-carbon technologies to long technologies
R&D costs operations
Lag in high-end product development relative to term Accelerate commercialization of technologies; align
Transition market demand with high-end market demand
risk
Revenue volatility due to cyclical price fluctuations Reduced Long Downstream Expand diversified downstream applications;
Market
of key products (silicon metal, silicone, etc.) revenue term value chain mitigate demand fluctuations
Brand Strengthen compliant operations and information
Affected brand image due to environmental or
damage Medium Downstream disclosure; proactively manage public opinion
Reputation compliance-related public opinions, incluencing
leading to term value chain Enhance ESG management; reinforce positive
orders and partnerships
order loss brand image
Opportunity Time Influenced
Opportunity description Financial impact Response measures
category scope value chain
Policy support for green and low-carbon industries;
Lower operating Medium Own
adoption of low-carbon technologies eligible for Proactively apply for policy-supported programs
Policy and legal subsidies, supporting business growth
costs term operations
Lower operating
Rising downstream demand creates expansion Medium Downstream
costs; increased Expand production capacity; increase market share
Market opportunities
revenue
term value chain
*Note: Short term refers to 1–3 years; medium term refers to 3–10 years; long term refers to more than 10 years
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Products with LCA assessment and carbon footprint certification
Impacts, risks, and opportunities management
Business Carbon footprint
We have established a management process—encompassing identification, analysis, Subsidiary Product
segment certification
evaluation, and response—based on our business characteristics, internal and external
ISO 14067 carbon footprint
conditions, and expert input. Climate risks are progressively integrated into the existing HS-5360 silicone rubber
certification
risk management framework, enhancing resilience and reducing potential operational
impacts. Methyl hydrogen silicone LCA assessment based on
Jiaxing
fluid ISO 14040
Climate risk management process Silicone Hoshine
Room temperature
LCA assessment based on
vulcanized silicone
Identification 01 ISO 14040
rubber (OH Polymer)
Identify climate-related risks and opportunities across core business activities
through analysis and research based on the TCFD framework and peer practices,
and compile comprehensive assessment inventories
Analysis 02
Quantify key attributes of identified risks and opportunities with reference to
industry characteristics, stakeholder input, and expert insights, developing risk and
opportunity inventories
Evaluation 03
Apply scenario analysis to assess impact and likelihood, evaluate the Company’s
adaptability and resilience, and define management priorities
Response 04 Carbon footprint certification of HS-5360 silicone rubber products
Develop targeted response plans for identified risks, implement specific measures, Metrics and targets
and regularly monitor the progress of key climate risk mitigation actions
The Company sets tailored energy consumption goals at the business division level
based on the operational status of each business line and incorporates climate-related
We conduct in-depth life cycle assessment (LCA) studies of product environmental im- KPIs into the performance evaluation of core management personnel. We regularly re-
pacts, covering all stages from raw material sourcing and manufacturing to distribution, view progress against these targets and promote energy conservation and emissions
use, and end-of-life disposal, to comprehensively assess and reduce carbon footprint reduction through process upgrades, equipment upgrades, energy substitution, and cir-
and overall environmental impacts in response to climate-related risks. cular utilization, to enhance our competitiveness in green development.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Category Unit
Resource Utilization
Hoshine Silicon regards efficient resource utilization as a core driver of sustainable de-
tCO2e 11,789,117.03 11,221,841.79 velopment. Through systematic strategic planning and technological innovation, we
Scope 1 GHG emissions have established a refined, full-value-chain management system covering energy, water,
materials, and packaging, providing strong support for the green and low-carbon transi-
tion.
tCO2e 8,739,283.65 4,493,288.57
Scope 2 GHG emissions
Energy management
Energy management system
The Company has established a unified energy management system. The headquar-
tCO2e 20,528,400.68 15,715,130.37 ters oversees overall strategy, policies, and target setting, while business divisions are
Total GHG emissions
responsible for implementation, forming a closed-loop management approach of target
setting, plan execution, performance evaluation, and continuous improvement, covering
the full process of energy procurement, consumption, and assessment. As of the end
of the reporting period, five subsidiaries including Shanshan Silicon, Xinjiang Silicon
tCO2e/RMB Industry New Materials, Western Hoshine, Jiaxing Hoshine, and Luzhou Hoshine have
GHG emission intensity
obtained ISO 50001 Energy Management System certification.
*Note: Policies and procedures Oversight and assessment
gasoline, diesel, coal, and natural gas, as well as indirect GHG emissions from the purchased electricity Establish policies and procedures Establish energy management
subsidiaries Management System , and Energy monitoring systems
Review Procedures , covering full- Conduct at least one internal audit
process requirements for energy of the energy management system
procurement, utilization, metering, annually; combine third-party
and statistical reporting verification and special inspections
to ensure effective system operation
Energy utilization initiatives
We advance cleaner production across all operational stages. Through energy audits,
technological upgrades, process optimization, and refined management, we improve
efficiency and reduce overall consumption and emissions.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Clean energy utilization
Process and technology upgrades Process and equipment optimization
The Company promotes energy structure optimization and actively explores the inte-
Silicon metal business segment Silicon metal business segment grated use of renewable and alternative energy. We continue to increase the share of
Eliminate energy waste from idle Replace 42 main blowers with units clean energy in total consumption, supporting the transition to low-carbon operations.
furnace burning, flare loss, and certified grade 1 under China Energy
material collapse through targeted Label (CEL)
rectification
Silicone business segment
Silicone business segment Upgrade reactor oil pump system,
Reduce high-boiling content in purified with three 200 kW pumps replaced Promote green electricity procurement through
Silicon metal
monomers to 15% by upgrading by one 400 kW unit, saving over market-based mechanisms
cracking and distillation systems; cut 300,000 kWh of electricity annually business segment
annual steam consumption by 963
Energy business segment
tons and save costs by hundreds of
thousands of yuan Replace high-pressure heaters as
a whole, saving over 2,000 tons of
Energy business segment standard coal with direct energy Advance the Shanshan 2.1 GW photovoltaic project,
Complete capacity expansion of savings exceeding RMB 1 million with plans to utilize local solar resources to supply
coal mills; improve blending and Energy business green power
segment
Retrofit boiler air preheater heat
combustion of low-grade coal; save storage components and reduce
over RMB 2 million in raw coal costs flue gas temperature and coal
annually consumption, saving over 1,000 tons
of standard coal annually Prioritize renewable energy consumption from the
incremental distribution network within the industrial
Photovoltaic business segment park, achieving 90.32% renewable energy share,
Photovoltaic
Optimize air compressor system for including 46.11% solar, 9.11% wind, 36.62% energy
business segment
silicon core reprocessing, reducing storage, and 8.16% hydropower
operating power by 92 kW and
saving an estimated over 600,000
kWh of electricity annually
Clean technology opportunities
We place full-process green upgrading at the core of clean technology development
Refined management of energy efficiency and implement our strategy through three key actions: promote low-carbon energy
such as photovoltaics to replace coal-fired power and reduce emissions; optimize smelt-
Energy business segment ing processes and develop circular economy systems, leveraging technologies such as
Conduct energy benchmarking; leverage third-party expertise waste refractory recycling to improve resource efficiency; integrate intelligent systems
and mature technologies; optimize system configuration and to enable precise management of energy use and pollutant emissions. At the same time,
equipment efficiency to unlock energy-saving potential we increase R&D investment, focusing on demonstration projects, equipment upgrades,
and new material development to capture clean technology opportunities.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Water resource management Water resource utilization initiatives
We follow the principle of conservation first and circular utilization. Through technolog-
Water resource management system ical innovation, process optimization, and resource reuse, we improve water use effi-
The Company has established a systematic system for water resource management. ciency, strictly control total water withdrawal, ensure compliant discharge, and enhance
Water is primarily sourced from water treatment plants and municipal supply networks, overall water management performance.
with some sites using surface water, rainwater harvesting, and recycled wastewater. All
water withdrawal and discharge activities comply with regulatory requirements and have
no material impact on water sources.
Silicone business segment
Achieve a steam condensate recovery rate of over 85%, saving
approximately 278,000 tons of freshwater annually
Establish policies and procedures such as Improve Energy business segment
Administrative Regulations on Water and Electricity Use water
efficiency
Implement retrofit projects for boiler blowdown water recovery,
and Water Treatment Operation Procedures , defining
Policies and enabling annual reuse of approximately 64,000 tons of water
management requirements across water withdrawal,
procedures after commissioning
metering, recycling, and wastewater treatment
Silicone business segment
Utilize rainwater harvesting systems within plant areas to collect
Establish water metering networks and rainwater for non-process water use
Alternative
real-time monitoring mechanisms; conduct
Energy business segment
Monitoring and monthly economic and trend analysis; identify water sources Treat production wastewater centrally and reuse it for land-
assessment anomalies and issue timely alerts
scaping and cooling water replenishment, saving approximately
Identify water-related risks using qualitative and Silicon metal business segment
quantitative methods; assess likelihood and potential Upgrade wastewater treatment through sedimentation and
impacts through water balance testing and historical data recycling processes, enabling compliant effluent reuse in
Risk analysis to prioritize risks and develop corresponding production and improving water recycling efficiency
management mitigation measures
Water Energy business segment
recycling
Establish tiered emergency response plans and targeted
preventive measures; regularly review and optimize Construct condensate recovery and treatment systems to
management processes, forming a closed-loop system centrally collect and process return condensate from production
sites, enhancing overall water recycling efficiency
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Materials and packaging management
The Company standardizes the procurement and use of materials and packaging. We establish policies and proce- Product environmental impact
dures, such as the Administrative Rules on Product Packaging Protection and the Administrative Rules on Product We conduct in-depth studies on product environmental
Packaging . Through design optimization, material innovation, and circular mechanisms, we reduce material con- impacts, identifying environmental factors across the full
sumption, promote environmentally friendly and recyclable packaging, and enhance the standardization, sustain- lifecycle—from raw material sourcing, equipment and
ability, and efficiency of materials and packaging management. process design to manufacturing, use, and end-of-life dis-
posal. We assess environmental risks associated with our
Material and packaging management initiatives in 2025 products and reduce impacts through eco-design, chem-
ical reduction and substitution, recycling, and circular
Silicone business segment utilization. These efforts minimize environmental impacts
throughout the product lifecycle and safeguard consumer
Sort and purify solid waste such as silicon slag and dust; recover valuable elements
health and safety.
including silicon and copper
Material recycling We also take active steps to reduce environmental im-
Convert by-products such as hydrochloric acid generated during production into raw
pacts at the end of the product and packaging lifecycle.
materials through technological processes, enabling closed-loop recycling
Through collaboration with customers, we promote recy-
cling, reduce packaging size, and lower packaging weight,
Silicon metal business segment
minimizing environmental impact.
Optimize production processes, raw material selection, and crushing/screening
systems, reducing consumption of quartz, coal, and wood chips
Establish recycling systems for raw materials and production, recovering and reusing
scrap, waste, and residual heat
Silicone business segment
Reduce material Commission idle distillation column retrofit projects to remove high-boiling components
consumption from purified monomers, reducing material circulation losses and steam consumption
Energy business segment
Retrofit plasma ignition systems for two generating units to replace conventional oil-
fired ignition systems, saving approximately 120 tons of fuel annually and reducing
material costs by over RMB 900,000
Silicon metal business segment
Prioritize bulk bag circulation and complete discharge of residual materials based on
product specifications to reduce the use of new bags
Silicone business segment
Packaging reuse
Promote the reuse of packaging materials, including reusing intermediate bulk
containers and replacing bagged transport with tank truck delivery
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Pollution Prevention and Control
The Company establishes policies such as the Wastewater
Management System , Exhaust Gas Emission Management
System , Hazardous Waste Management System , and Pollutant
Hoshine Silicon fulfills its primary responsibility for ecological and environmental protection. Leveraging its inte- Discharge Permit Management System to guide full-process
grated “coal–power–silicon” circular economy model, the Company has established a full-process pollution control pollutant control. We monitor emissions in real time through
system. Environmental principles are embedded across operations, driving continuous improvement in environ- online systems and implement a closed-loop supervision
mental performance and enabling a balance between economic and ecological value through technological inno- mechanism combining routine inspections, periodic audits,
vation. and external verification.
Pollutant management Strategy
Governance The Company adopts a core strategy of “source reduction,
resource recovery, compliant disposal, and intelligent control”.
The Company has established a three-tier pollutant management governance structure comprising decision-mak- We reduce waste generation at source through cleaner pro-
ing, organizational, and execution levels. We clearly define roles and responsibilities at each level and delineate duction and process optimization; promote resource utilization
end-to-end management boundaries across decision-making, coordination, and implementation. This structure through closed-loop practices such as waste acid recovery,
ensures the standardized and orderly advancement of pollutant management and provides a solid foundation for wastewater reuse, and waste residue recycling; ensure full
strengthening environmental governance and supporting green development. compliance with environmental regulations and establish end-
Decision-
to-end management systems; leverage digital platforms to
Board of Directors
making level Reviews and approves major strategies, plans, annual targets,
enable lifecycle monitoring and traceability, ensuring compli-
ant pollutant discharge.
and key initiatives related to pollutant management
Makes decisions on significant pollutant discharge issues
Organizational General manager of the Business Division
level Translates management requirements into actionable targets
and implementation plans within respective areas
Coordinates pollutant management efforts across subsidiaries
Oversees the fulfillment of responsibilities by subsidiaries,
organizes corrective actions for significant emission issues, and
reports to the decision-making level
Execution Heads of the Safety and Environment Departments
level of each subsidiary
Develop detailed pollutant control rules and operating
procedures, and ensure effective implementation
Conduct routine monitoring and day-to-day management of
pollutant emissions
Hoshine Silicon pollutant governance structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Financial Influenced
Risk category Risk description Time scope Response measures
impact value chain
Excessive exhaust gas emission caused by Increased Strengthen equipment inspection and maintenance,
equipment failure or process disruptions direct Short Own and conduct regular emissions testing
Acute
Malfunctions at wastewater treatment facilities treatment term operations Provide environmental compliance training to
leading to operational abnormalities costs standardize operational practices
Physical
risk Improper storage of hazardous waste leading Establish strict waste classification, collection, and
Increased
to soil and water contamination disposal systems; ensure hazardous waste is handled
direct Short Own
Chronic Delayed disposal of general waste causing by qualified contractors with full traceability
treatment term operations
space occupation, odor issues, and Ensure timely removal of general waste and
costs
environmental impacts strengthen management of storage areas
Increased
Policy and Risk of non-compliance due to inability to Short Own Closely monitor regulatory developments and
operating
legal adapt to increasingly stringent regulations term operations continuously optimize production processes
costs
Transition
risk
Increased capital investment required for Increased Increase R&D investment and collaborate with
Long Own
Technology environmental technology upgrades and operating research institutions and industry partners to develop
term operations
management system improvements costs low-carbon and environmentally friendly technologies
Financial Influenced
Opportunity description Time scope Response measures
Opportunity
category impact value chain
Stricter emission standards accelerate the phase-
Continuously enhance environmental management
out of high-pollution, outdated capacity, enabling the Increased Downstream
Policy and
Long term practices and actively participate in environmental
Company to capture additional market share through revenue value chain
legal its mature pollutant management system
initiatives to strengthen brand reputation
*Note: Short term refers to 1–3 years; medium term refers to 3–10 years; long term refers to more than 10 years
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Impacts, risks, and opportunities management Metrics and targets
The Company has established a pollutant risk management process covering identifica- The Company sets differentiated and actionable pollutant control targets at the business
tion, assessment, monitoring, and response, taking into account the operational charac- division level based on actual emissions of exhaust gas, wastewater, and solid waste. We
teristics of each business division and internal and external regulatory requirements. We regularly review and assess target performance to continuously improve the precision of
integrate pollutant risk control into the overall risk management framework, enhancing pollution management.
risk anticipation and response capabilities, and steadily reducing the impact of pollut-
ant-related risks on business operations and development.
Category Indicator Unit 2024 2025
ton 5,399.66 2,825.21
Pollutant risk management process
Nitrogen oxide emission
Sulphur oxide emission ton 1,050.72 913.43
Conduct regular environmental aspect identification and
assessment, considering production processes, equipment
and facilities, and regulatory requirements to systematically VOC emissions ton 6.63 2.27
Identification identify potential risk points in pollutant generation and Exhaust Gas
ton 868.11 400.49
treatment, and develop a comprehensive risk inventory Particulate matter (PM)
emissions
Total exhaust gas emission
Evaluate identified risks using both qualitative and m3
quantitative approaches, analyzing likelihood, impact
Assessment scope, and severity to determine risk levels and prioritize COD ton 260.49 128.71
key risks
Ammonia nitrogen ton 12.73 4.53
Wastewater
Total wastewater 10,000
Continuously monitor key risks through online monitoring discharge tons
systems, routine inspections, and periodic testing, with
Monitoring
ton 39,157.37 70,803.09
real-time tracking of risk dynamics Hazardous waste recycled
and reused
ton 520,731.86 698,782.93
Non-hazardous waste
collected (recyclable)
Develop differentiated control measures based on risk Waste Hazardous waste treated
ton 63,354.92 12,988.34
levels, assign responsible departments and timelines, and by other method
Response track implementation effectiveness
ton 43,899.91 20,507.20
Non-hazardous waste
collected (non-recyclable)
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Pollutant treatment Initiatives for exhaust gas emission reduction in 2025
The Company follows the principles of “systematic management, targeted measures, ef-
ficient circular use, and full compliance” in pollutant treatment. We implement classified Monitoring and control
management and scientific treatment for different types of pollutants. Digital monitoring Install continuous emissions monitoring systems (CEMS) at major
and traceability platforms further enhance standardization and precision, ensuring both emission outlets and connect them to regulatory authorities for
environmental and economic benefits. real-time data transmission, enabling routine monitoring and early
warning of emission data
Exhaust gas treatment
Major exhaust gas emissions include furnace flue gas from silicon metal production; Process upgrades
VOCs and hydrogen chloride from silicone production; sulfur dioxide, nitrogen oxides, Establish leak detection and repair (LDAR) systems; conduct
and particulate matter from coal-fired power generation; as well as acid/alkaline gases, regular inspections of static and dynamic sealing points, reducing
ammonia, and odor gases. fugitive emissions
Discharge Apply low-NOx combustion technologies to reduce nitrogen oxide
type
Pollutant Treatment measures Result generation at source
Expand the application of membrane separation technologies to
Treated through “cyclone gravity dust
increase chloromethane recovery rates to 99%
Silicon metal removal+baghouse filtration”, followed by
exhaust gas denitrification and wet desulfurization systems
Facility upgrades
Treated through integrated processes including Upgrade exhaust gas treatment facilities and optimize operating
condensation recovery, incineration, SNCR parameters for adsorption and incineration systems
Silicone denitrification, dust removal, water/alkaline Conduct regular equipment inspection and maintenance,
exhaust gas scrubbing, and activated carbon adsorption implement predictive maintenance, and reduce leakage risks
Neutralized through multi-stage scrubbing
Acidic/alkaline technologies (e.g., two-stage and four-stage Wastewater treatment
exhaust gas scrubbing) Compliant Orga-
Wastewater mainly includes domestic sewage and industrial wastewater. Industrial
discharge nized
Treated through processes such as “selective wastewater consists of acidic, alkaline, high-salinity, and process wastewater, with key
catalyst reduction method for flue gas denitrification pollutants including COD, ammonia nitrogen, suspended solids, and salts.
(SCR)+electrostatic precipitator+limestone
gypsum wet desulfurization” and “baghouse
SO2, NOx Pollutant Treatment measures Result Discharge type
filtration+desulfurization and denitrification”,
Particulate
Domestic
matter as well as “dry desulfurization using hydrated Treated via dedicated
Treated to
sewage
lime+integrated denitrification and dust removal via wastewater treatment
ceramic filter tubes” systems compliance
Compliant
standards before
discharge
Industrial
Treated by technologies such as two-stage activated Treated via dedicated discharge to
wastewater
carbon adsorption with catalytic combustion, and wastewater treatment municipal systems
VOCs RTO incineration systems
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Wastewater reduction initiatives in 2025
Category Name Treatment measures Storage
Including fly ash, Collected and disposed Collected
Water reuse and conservation desulfurization ash, of by municipal sanitation separately
Reuse treated wastewater for production water replenishment General slag, packaging services or qualified and stored in
and landscape irrigation, reducing freshwater consumption solid waste materials, office waste, contractors on a timely designated
Implement rainwater and sewage diversion to prevent rainwater and domestic waste basis areas
contamination Managed under a
Stored in
Including waste manifest system; treated
Process upgrades dedicated
mineral oil, spent by qualified contractors or
temporary
Apply combined treatment processes such as “A/O contact materials, through in-house facilities
storage
biological treatment+secondary sedimentation” and “water waste catalysts, high- for recycling, incineration,
scrubbing+alkaline scrubbing”, with dedicated treatment solutions Hazardous boiling residues, waste or compliant landfill;
facilities, and
for high-salinity wastewater waste activated carbon, tracked throughout the
classified
and labeled
Develop salt recovery technologies from wastewater to reduce and laboratory waste lifecycle via the hazardous
by hazard
hazardous waste generation liquids waste management
characteristics
system (HWS)
Facility upgrades
Including silicon slag, Collected separately
Deploy zero-liquid-discharge (ZLD) systems at key plants, treating Set up a
filter residue, used and recycled through
dedicated
Recyclable
wastewater to meet circulating water intake standards for reuse intermediate bulk reuse, material recovery,
storage area for
waste containers, and waste or supplier take-back
storage
Vaporizer condensate drain retrofit at Jiaxing Hoshine to RO membranes programs
Case reduce wastewater discharge
Waste reduction initiatives in 2025
To address increased wastewater discharge from vaporizer condensate during
maintenance, Jiaxing Hoshine upgraded the drainage system by redirecting
condensate directly into the rainwater pipeline. This prevents mixing with acidic
Monitoring and control
trench water and reduces wastewater generation from the source. The project re- Enhance the hazardous waste management system (HWS) to enable
duces wastewater discharge by approximately 60 tons annually and lowers treat- full lifecycle tracking
ment costs, delivering both environmental and economic benefits. Establish comprehensive management records, and conduct regular
environmental audits and compliance training
Waste management Process upgrades
The Company’s waste mainly includes general solid waste and hazardous waste. Some Expand resource recovery technologies such as copper extraction
of the silicon slag and used intermediate bulk containers in general solid waste can be from high-boiling residues and concentration of waste sulfuric acid
recycled and reused. For non recyclable general solid waste and hazardous waste, quali- Facility upgrades
fied third parties will handle them separately. Upgrade hazardous waste storage facilities, including video
surveillance and anti-seepage systems
Promote the development of circular economy industrial parks to
improve waste recycling efficiency
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Chemical Management
Chemical management system
Hoshine Silicon adheres to the principles of safety, compliance, low carbon, and efficiency. The Company establishes policies and procedures such as Chemical Safety Management Pol-
icy , List of Chemical Categories and Management System , and Hazardous Chemicals Management System . We maintain a comprehensive chemical inventory covering inspection, usage
records, and routine checks in accordance with regulatory requirements. A full lifecycle management system ensures compliant control and continuous improvement in chemical manage-
ment.
Procurement
Storage
Verify qualifications of
chemical suppliers, including Store chemicals by category
regulatory-compliant and segregate based on
SDS and declarations of their properties in strict Transportation
compliance; admit materials accordance with MSDS
requirements Enter into Transportation
only after sample testing and
Safety and Environmental
trial use, and conduct regular Store hazardous chemicals Use
Protection Agreements with
compliance assessments of in dedicated warehouses
Disposal
licensed hazardous goods Issue chemicals only to
hazardous chemical suppliers equipped with ventilation,
logistics providers, specifying authorized personnel with
and carriers leak prevention, temperature
operational requirements for approved requisition forms Segregate and collect
Obtain approvals from local and humidity control, and
transport, parking, handling, waste chemical packaging
public security authorities emergency facilities, with Require operators to wear
sampling, and unloading and chemical waste,
and relevant regulators clear warning signage; apply appropriate personal
Define fixed routes for entrust disposal to licensed
for controlled chemicals “dual-control” management protective equipment (PPE)
internal transfer and avoid hazardous waste contractors,
(e.g., nitric acid) prior to for controlled chemicals and conduct operations in
peak personnel periods to execute formal disposal
procurement, and register Establish full-process fume hoods or designated
ensure transportation safety contracts, and retain full
such approvals in designated traceability records through areas in strict compliance
transfer documentation to
regulatory systems SAP systems and chemical with safety procedures
ensure traceability
management platforms, and
implement a first-in, first-out
(FIFO) issuance system
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Chemical management initiatives
The Company strengthens full-process risk control and green, efficient operations. We enhance employee awareness through systematic training, reduce environmental impacts through
technological upgrades, and ensure supply chain compliance through standardized procedures, improving overall effectiveness and sustainability in chemical management.
Facilitate regulatory inspections by Deliver integrated online and
emergency management authorities offline chemical safety training for
and public security authorities for management staff and frontline
storage sites of hazardous and operators, covering chemical
controlled chemicals properties, storage requirements,
Implement supervision via dedicated safe handling, and emergency
regulatory platforms for controlled response, achieving full coverage of
chemicals relevant personnel
Chemical Chemical
supervision training Establish a three-tier safety training
system at company, department,
and team levels, requiring new
employees to pass chemical safety
assessments prior to assuming their
roles
Conduct emergency and firefighting
drills simulating leakage, fire, and
poisoning scenarios to enhance
response capability and coordination
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Leveraging the “Silicon” Chain to
Empower Value Co-Creation
Aligning with the SDGs
Material topics
Product and service safety and quality, Supply chain management, R&D and innovation
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Product Quality
Hoshine Silicon strictly abides by such laws as China’s Law on Product Quality to continuously improve its quality management system. By optimizing our quality management systems and
standards, leveraging technological empowerment, and deploying dedicated quality teams, we have achieved full-process quality control spanning from R&D to after-sales service. The
Company dedicates to high-end upgrading and transition to integrated services, and leverages stringent standards and optimized measures to ensure product quality and competitiveness.
As of the end of the reporting period, 16 subsidiaries have obtained ISO 9001 quality management system certification, and Ningbo Guanghe has obtained IATF 16949 automotive industry
quality management system certification.
Governance Strategy
Hoshine Silicon’s quality management system is built upon ISO 9001 Standard. Meanwhile, the Company has in- The Company is dedicated to building itself a global quality
troduced the LIMS (Laboratory Information Management System), integrated IoT technologies into its production benchmark in the field of silicon-based materials. To this end,
system, and established the “One Code for One Item” traceability system, achieving full-process quality control we have formulated corresponding product quality strategies,
and data traceability. and we implement the idea of “quality comes from design”
throughout R&D and carry out supplier access and unan-
The Company has established a hierarchical product quality governance structure of three tiers, with specific nounced audit across the supply chain. In addition, we have
rights, duties, and professional capabilities clarified for each tier. We have formulated such regulations as the introduced statistical process control and batch traceability
Product Quality Management System and the Unqualified Product Control Procedure , building a comprehensive throughout production, and we provide standard analysis
system across basic management, process control, risk and compliant management, etc. We have nailed down the certificates and full-process services at the delivery side,
quality requirements for each link, the operating specifications, and assessment standards, supporting the overall achieving quality control throughout the value chain. While
quality control. transitioning from pure product sales to an integrated solution
Decision-making level of “materials + process + services”, we are responding to the
quality demand of high-end manufacturing and new energy
The General Manager acts as the head of quality management, and the representatives of the
sectors, facilitating the upgrading of business models.
management assist in system construction
Review and approve quality strategies and targets, decide major quality issues, and optimize the allocation of
quality resources
Management level
Members of the professional quality management team are proficient with industry standards and
internal norms, and hold certificates for key positions
Formulate quality plans and systems, carry out full-process quality inspection, organize system audit, and
conduct non-conforming product control and quality data analysis
Execution level
All departments are responsible for the control of raw material quality, process quality, and new product
quality
Implement quality control requirements, carry out process regulations and inspection standards, report quality
abnormalities, and participate in quality inspection and rectification
Hopson Silicon product quality governance structure
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Financial Time Influenced value
Risk category Risk description Response measures
impact scope chain
Increased
operating
Unqualified products or foreign matters Own operations Implement strict foreign matter control in production, establish
costs; Short
may lead to administrative penalties, Downstream full-process quality inspection standards, and ensure product
Product risk customer complaints or claims
decreased term
value chain compliance with national standards
operating
income
Increased Upstream value
operating chain
Unqualified supplier materials or damaged Strengthen supplier quality audit and inspection of incoming
costs; Short
packaging may result in terminal product Own operations materials, improve packaging management standards, and
Supplier risk quality problems
decreased term
tighten daily supervision over outsourcing transportation parties
operating Downstream
income value chain
With rapid changes in market demand and Decreased Own operations Establish a dynamic monitoring mechanism for market demand,
Medium
technological upgrading, sluggish product operating Downstream increase spending on research, accelerate product iteration, and
Market risk iteration may lead to slow sales income
term
value chain advance the R&D of high-end and differentiated products
Opportunity Financial Time Influenced value
Opportunity description Response measures
category impact scope chain
Leading or participating in the formulation of
Increased Deeply engage in the discussion and formulation of industry
national and industry standards can demonstrate Medium
Technology our technological and quality advantages and can
operating
term
Own operations standards, transform technological advantages into standard
opportunity lead the quality improvement of the industry
income clauses, and strengthen the guidance of quality control
Upstream value
With the rise of the new energy material market, Increased chain Highlight R&D of new energy products, optimize production
Long
Market high quality requirements provide opportunities for operating
term
Own operations process and quality control system, and build a high-end new
opportunity technological upgrading and quality control income Downstream energy material product matrix
value chain
*Note: Short term refers to 1–3 years; medium term refers to 3–10 years; long term refers to more than 10 years
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Impacts, risks, and opportunities management
Each production base of the Company has established a closed-loop management The Company has built a full-chain inspection system for products. Through standard
system for the impacts, risks, and opportunities on product quality covering the entire inspection procedures, advanced technologies and multi-level reviews, we ensure that
value chain. Through comprehensive management, full-process control measures, and the product quality of each batch is controllable and traceable. Meanwhile, we have
continuous optimization, we have achieved systematic control of the impacts, risks, and established a quality training system for different levels of employees to enhance their
opportunities on product quality. quality capabilities and compliance awareness, whether they are managers or frontline
workers.
Product quality risk management process
Product quality inspection process
Clarify that the information is sourced Prioritize the management of
from the operation data of each high-level risks that may lead to
Establish a supplier access audit mechanism where key raw
production base, internal audit reports, significant customer loss, legal
material suppliers are required to pass on-site audit and sign
customer complaints and demand proceedings, and production
quality agreements
surveys, supply chain quality data, etc., suspension, and the management Input
identify risks across the entire value chain of high-value opportunities that of raw Carry out full-item inspection of all incoming raw materials in
covering R&D, procurement, production, are in line with the Company’s materials accordance with national standards, industry standards, and
delivery, and after-sales, and prioritize the strategy enterprise standards, including the inspection of appearance,
influencing factors related to core quality purity, key ingredients, and other metrics, and put them into
attributes such as product purity, stability, storage only after passing the inspection
and compliance
Set up quality control stations in key processes, and use SPC
statistical process control technology to monitor the stability of
Identification Assessment Management Monitoring process parameters in real time
Production
process Conduct sampling inspection on semi-finished products, verify
the execution of production process and core characteristics
of products, and immediately shut down the equipment for
Quantitatively assess the impact of Establish monitoring metrics such as
rectification in case of any abnormalities
non-conformity of product quality first-time inspection qualification rate,
on finance, brand reputation, supplier incoming batch qualification
customer churn, compliance rate, quality defect repetition rate, etc., Implement strict batch inspection system for finished products,
penalties, etc. conduct real-time quality data collection carry out full-item inspection for each batch, and issue qualified
and analysis through LIMS, MES, Output of
analysis certificate
Assess the potential value of Kingdee, and other systems, and form a finished
opportunities for market expansion, products Conduct full-process traceability through LIMS and other
three-dimensional monitoring network
revenue growth, and industry digital systems, and record such information as inspection data,
combined with manual inspection and
competitiveness improvement inspection personnel and inspection equipment
regular inspection reports
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
The Company has formulated the Product Recall Control Procedure to clarify the recall
Metrics and targets
initiation conditions, division of responsibilities, and handling mechanism. Through rap-
id response and effective rectification, we endeavor to minimize the impact of quality
To continuously improve the stability and reliability of product quality, the Company fully
problems on customers, and improve the collaborative response efficiency across de-
considers the needs of market customers, industry standards and specifications, and
partments.
its own production and operation practices and sustainability strategies. We aim to en-
hance our market competitiveness and maintain a fine brand image, and are committed
to building and improving the full-process quality management system, continuously
Product recall process improving product and service quality, and preventing major quality and safety incidents.
Recall trigger mechanism 2025 key performance
Initiate a recall assessment immediately when a product is
found to have quality defects, non-compliance with standards,
or when many customers complain about product quality Product safety and Accident
quality accidents damage
Recall execution process
Formulate a recall plan, and specify the responsible person,
work steps, and time lines
Assign special personnel to contact customers, conduct
product recall, replacement or refund, and record the
execution of recall
Customer Service
Cause investigation and rectification
To address customer needs throughout product lifecycle, Hoshine Silicon has standard-
Organize cross-departmental teams to carry out root cause
izes its service system, and built a whole-chain customer rights protection mechanism.
analysis, formulate corrective and preventive measures, and
Through full-process services, smooth communication, and standard customer com-
track the implementation and effect of measures
plaint handling, we have significantly improved our service quality, and empowered mar-
Document recall information in quality improvement files to keting under the principles of compliance, transparency, and environmental protection.
avoid similar problems We have consolidated customer information security relying on bulletproof systems and
technologies, and coordinately improved customer satisfaction and sustainability value.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Optimized service experience Customer complaint handling process
Following a customer-centered principle, the Company strives to build a standard and
process-oriented service system. To address customer needs and improve service expe- Registration and response
rience, we have established an all-round service management mechanism covering pre- After a customer submits a complaint,
sales, in-sales, and after-sales, and are steadily enhancing customer satisfaction through the Product Support Department or back
diverse communication channels, efficient problem handling processes and continuous office creates a customer complaint form
improvement measures. in the CRM system as soon as possible to
notify relevant departments to initiate the
Improving customer service quality complaint handling procedure
Investigation and collaboration
The Product Support Department or
Full-process service system sales staff lead the comprehensive
traceability analysis of the complaint to
Ensure accurate product selection and transparent transaction information in pinpoint the root cause, assess its scope
pre-sales of impact, and formulate targeted short-
Achieve automatic document processing and on-time delivery through CRM, term corrective measures and long-term
SAP, TMS, and other systems preventive plans
Establish a cross-departmental collaboration mechanism after sales, quickly
collaborate with relevant business departments to conduct traceability Solution and communication
analysis, and provide solutions such as returns and exchanges according to A complete solution is built upon
customer demands after troubleshooting investigation results incorporating
corrective measures and preventive
plans. We will actively communicate with
customers and fully listen to their voices
to confirm the feasibility of the solution
Diverse communication channels
Establish regular, efficient communication with customers through telephone, Execution and closure
visit, WeChat official account, email, video conference, and other Correctives measures are carried out
in strict accordance with the confirmed
solution, and effect is traced until the
closure of the compliant form
The complaint case is filed to provide
Customer satisfaction survey
reference for the subsequent handling of
Conduct regular customer satisfaction surveys through telephone, visit, similar cases
business meeting, etc.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Responsible marketing Customer privacy protection
Guided by the principles of compliance, transparency, and low-carbon development, Hoshine Silicon attaches great importance to customer privacy protection. To this end,
the Company integrates sustainability into the entire marketing process. Through we have established end-to-end security controls for the collection, storage, and use of
eco-friendly product iteration, standard information disclosure, and green operations, customer information. Through institutional policies, technical protection, and compa-
we provide customers with safe and environmentally responsible products and services, ny-wide training, we effectively protect customer data and privacy. In 2025, the Compa-
promoting coordinated sustainability across the value chain. ny recorded no incidents or complaints related to customer privacy infringement, or the
leakage, theft, or loss of customer data.
Practice of responsible marketing
Customer Privacy protection initiatives
Hazardous waste control Compliance statements
Standardizing information Improving privacy
Optimize the production Ensure that all product acquisition and use protection awareness
processes of core products technical parameters and
Obtain customer information Conduct training on data
such as dimethyl silicone performance specifications
through publicly available privacy to continuously
oil, reduce the content of are jointly reviewed by
sources and other lawful and strengthen risk prevention
cyclic volatile siloxanes, and the R&D and quality
compliant channels, including and employees privacy
ensure compliance with departments, with some
with customer consent protection awareness
international environmental verified by third-party
standards including the EU institutions, and maintain Use information solely for
REACH Regulation consistency of product contract fulfillment, customer
names, models, and batch service, and compliance
numbers across internal analysis, and commit not to
systems and external use it for any other purposes
documentation without customer consent
Prohibit exaggerated, false,
or misleading claims, and
ensure that all compliance
statements are supported by
authoritative testing reports
Enhancing information
storage and protection
Standard product identification
Store customer records centrally on Silicon Cloud
Provide comprehensive material safety data sheets and internationally compliant
Online and the CRM system, and implement strict
MSDS for all products, and specify key information such as composition,
access controls and permission verification
physiochemical properties, environmental impact, and biodegradability
Enhance remote access security through multi-factor
Ensure all shipped products are properly labeled with GHS markings, transport
authentication to ensure the safety of information
labels, and environmental hazard warnings, and fulfill safety disclosure obligations
storage
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
R&D Innovation
Hoshine Silicon employs an integrated “coal - power - silicon” circular economy industrial park development model, and has established a core layout for its silicon industry chain. The Com-
pany’s current technological research covers the comprehensive utilization of upstream silicone by-products, studies on catalytic and neutralization systems for (functional) silicone oils, and
the development of downstream silicone products. Our research spans diverse sectors including construction waterproofing, electronics and electrical appliances, textiles, automotive, and
machinery. Through technological innovation, the Company has extended the industry chain value and enhanced its core competitiveness.
Governance
The Company has established a R&D center as the centralized management department for innovative technologies, which is responsible for overseeing the innovation projects throughout
lifecycle, including project initiation, implementation, modification, termination, acceptance assessment, and patent applications. We have also built a high-performing R&D team with strong
exploratory capability and high professional competence, whose members are from diverse disciplines such as polymer materials, materials processing, chemistry, mechanical engineering,
and computer science. As of the end of 2025, there are 3,088 research and development personnel, including 26 personnel with master’s degrees or above.
R&D management system R&D platform R&D project assessment
We have formulated the General Principles of Project Management
We have established such R&D Quarterly assessment targets are set for
System , and the Management System for Application of External Projects,
platforms as the Hoshine High-tech each R&D project, and the assessment is
to encourage R&D teams to overcome technical challenges with rewards
Silicon-Based Materials Provincial undertaken by the assessment team of
We have formulated the Project Management System - R&D Projects . The R&D Center, Zhejiang Hoshine Silicon the R&D center. The assessment results
Project Management Committee reviews projects, and allocates more New Materials Research Institute, are highly relevant to the annual project
resources to those with substantial contributions to the Company, society Zhejiang Hoshine Silicon-Based bonus of R&D personnel to ensure the
and sustainability, thus stimulating the enthusiasm of the R&D team Materials Key Enterprise Research quality of R&D projects
We have formulated the Intellectual Property Right Management System Institute, Zhejiang Provincial Enterprise
to protect the Company’s innovation achievements by standardizing the Technology Center, Zhejiang Provincial
creation, submission, maintenance, and application of intellectual property Postdoctoral Workstation, and
rights, and by carrying out risk investigation and infringement response Provincial Academician and Expert
measures Workstation
Strategy
Following the mission of “concentrate on materials to create the silicon-based a wonderful life”, the Company is committed to synthesizing resources, restructuring its organization, promot-
ing independent innovation, cultivating and introducing talents, and growing industry clusters. Industry advantages are what underline our research and innovation strengths. Through proj-
ect research, mechanism innovation and talent training, we aim for key technology breakthroughs commonly desired in the industry, and continuously improve product performance, opti-
mize industrial structure, and build a technological innovation system in the silicon industry, thus emerging as a leading innovation enterprise through our R&D and innovation management
strategies.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Time Influenced
Risk category Risk description Financial impact Response measures
scope value chain
R&D projects are uncertain, greatly affected
by technical challenges and reserves, and poor Diversify the R&D team by recruiting professionals in various
experimental results can result in the loss of early fields, and strengthen technical exchanges and collaboration to
Increased Long Own
Technology investment
operating costs operations
enhance the troubleshooting ability
risk
term
Due to rapid technological iteration, the existing Require R&D engineers to track industry technology trends, and
technologies can easily fall behind and result in adjust R&D direction in tim
weakened market competitiveness
Carry out in-depth market research in the early stage of R&D,
Low market acceptance or insufficient demand Increased
Own analyze the needs, preferences, and market trends of target
for new products, or the influence of other operating costs,
Long operations customers to support product positioning and design
alternatives for new products, may lead to decreased
Market risk slow sales and failure to achieve the expected operating
term Downstream Establish a market feedback mechanism to collect customer
value chain opinions, and quickly optimize product performance and
economic benefits income
functions based on the feedback
Develop a competitive remuneration and benefits system, and
Increased provide salary packages higher than the industry average,
Enterprises cannot attract and retain high- Own
operating costs, comprehensive benefits, and performance bonus
performing professionals, affecting the stability Long operations
decreased
Talent risk
Foster a good corporate culture and working environment,
and innovation ability of R&D teams, and term Downstream
operating highlight employee career development, provide abundant
restricting the R&D and innovation progress value chain
income training and promotion opportunities, and prepare for talent
replenishment
Opportunity Financial Time Influenced value
Opportunity description Response measures
category impact scope chain
Increase spending on research to develop higher-
Increased Increase spending on research, encourage internal
end and more value-added products, expand to Medium Downstream
Product upgrade emerging fields such as new energy and electronic
operating
term value chain
innovation, and cooperate with research institutions to
opportunity materials, and search for performance growth
income develop cutting-edge technologies
Strengthen integration with emerging industries, Increased Strengthen cooperation and exchange with downstream
Industrial
Long Downstream
develop customized products, expand business operating enterprises, establish industry alliances, and jointly carry
convergence areas, and achieve coordinated developmen income
term value chain
out technology R&D and marketing projects
opportunity
*Note: Short term refers to 1–3 years; medium term refers to 3–10 years; long term refers to more than 10 years
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Impacts, risks, and opportunities management
The Company continuously optimizes the management of risks and opportunities of R&D and innovation. We carry out risk control throughout R&D, and have reduced the likelihood of oc-
currence of such risks to ensure the continuity of innovation by revising the Introduction Process of New Silicone Products , strengthening market demand analysis and technological risk
assessment, etc.
R&D and innovation risk management process
Identification Assessment Response Monitoring
Comprehensively Assess the likelihood of risk Terminate the R&D project Specify the stages of R&D
identify R&D risks and occurrence and the severity in case of changes in projects as feasibility study,
opportunities, carry of impact, rank the risks, and market and technical project establishment,
out market feasibility formulate prevention and control feasibility, or restrictions in small-scale development,
analysis including strategies according to risk patents, and sort out and pilot scale experiment,
strategy consistency, priority archive existing work and industrial application,
technical feasibility, patent assign assessment teams
Constantly re-examine and assess
restrictions, etc. to evaluate the project at
risks of all categories at different
every stage to improve the
stages of product development
success rate
to ensure the progress of the
project, and stop R&D activities in
time when necessary
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
It was found that acidic resin effectively
catalyzes the reaction of ViSi2 with cyclics.
Investigating its reusability can significantly
reduce solid waste, simplify the preparation
Preparation of vinyl
of vinyl polymer, and obviate high-
polymer via Acidic
temperature deactivation or neutralization
Resin Method
Preparation of
The reusability of the acid-activated clay was H-polymer Catalyzed
experimentally investigated. The clay can be by Acid-Activated
reused over 20 times, drastically minimizing Clay and Its By switching from cyclics to PMDS as the
hazardous waste and significantly alleviating Reusability Preparation of raw material, the yield was raised from
the associated environmental burden Amino-Siloxane the conventional 87% to over 97%
Under tetramethylammonium hydroxide A high-viscosity Me-siloxane emulsion
catalysis, the relationship between reaction was prepared at room temperature from
Optimization of
Industrialization
Reaction Conditions
rate and energy efficiency in the preparation PMDS using a surface-active catalyst.
of Emulsion
for Vinyl Silicone gum
of vinyl silicone gum was investigated, The resulting emulsion is suitable for
allowing for a significantly lower reaction Polymerization textile finishing and personal care fields,
temperature at an unchanged reaction Products offering advantages such as improved
time, thereby ensuring energy efficiency energy efficiency, reduced packaging
without sacrificing control over the polymer material usage, and simplified production
architecture process
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Partner
Collaborative project Research outcome Metrics and targets
institution
An energy-cascading thermal integration strategy was Aligned with the national innovation-driven development strategy, the
Industrial Development implemented to couple multi-stage distillation columns company places technological innovation at the heart of our pursuit
and Demonstration of an into multi-effect distillation. This enabled energy for high-quality growth. We have established a set of clear and ambi-
Integrated Smart Energy cascade utilization, delivering significant energy savings tious innovation goals. Strengthening our talent pipeline by recruiting
System for Carbon and markedly improved dimethyldichlorosilane purity innovative R&D professionals and expanding our research workforce,
Reduction in Siloxane during the rectification of 400000 tonnes of crude thereby continuously attracting high?caliber expertise from across the
methylchlorosilane industry. Increasing the number of R&D projects to broaden our inno-
vation footprint and intensify technology breakthroughs, thereby driv-
Shihezi Development of High- ing deeper integration between our R&D system and industry needs.
University
A technology for the high-value utilization of crude high-
Value Utilization Enhancing our public profile by reinforcing shared value across the
boiling silicone oil was developed to improve its overall
Technology for High- innovation ecosystem, thereby highlighting the company’s leadership
quality
Boiling Silicone Oil role in industrial innovation.
A Conti-line for Me-siloxane was developed. By screening
high-efficiency catalysts, the production efficiency and 2025 key performance
Development of a Conti-
product quality were improved, leading to a 30% increase
line for Me-siloxane
Patent
in single-line throughput and a significant reduction in Total Invention Utility model Design
residual impurities application patent patent patent
R&D of Key Technologies New silicon carbon negative electrode materials were 302 124 178 0
for Silicon Carbon developed to effectively enhance the energy density and
Authorized
Negative Electrode cycling stability of batteries, enabling high-performance
Total Invention Utility model Design
patent
Materials lithium-ion batteries with a robust material foundation
patent patent patent
East China Key technologies for the synthesis and purification of low- 105 11 94 0
University of
Science
R&D of Key Technologies volatility Me-siloxane were developed, enabling the stable
for 5000 ton/year Low- and large-scale production of high-quality material. This
Valid Total Invention Utility model Design
Technology,
Volatility Me-siloxane addresses the pressing demand in high-end chemical and
patent patent patent patent
Xinjiang cosmetic fields for low-odor and high-stability siloxane
University 770 98 670 2
A manufacturing process was developed for mixsilicone
R&D of Key Technologies
rubber with precisely tunable hardness. The products
for 5000 ton/year
exhibit excellent mechanical properties and weathering
Hardness-Controlled
resistance, suitable for applications in aerospace,
Mixsilicone Rubber
automotive manufacturing, and medical devices
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Sustainable Supply Chain
Supplier management
The Company has formulated the Detailed Rules for Supplier Management and established the Supply Chain Management Center to carry out supplier development, supervision, assess-
ment, and management in an open, fair, and impartial manner. We exercise full-process control over supplier admission, assessment, and exit, integrating supplier sustainability assessment
and investigation into the entire management process.
Hoshine Silicon formulates the Criteria for Upgrading and Downgrading Supplier Categories and
sets differentiated admission requirements for different categories of suppliers. Preliminary data
review is conducted first, followed by system approval for suppliers meeting the entry threshold
The Company performs comprehensive, objective, and targeted evaluations, meticulously
Supplier examining supplier qualifications across dimensions such as product quality, business risk, and risk
admission control capability
Preference is given to suppliers with better ESG performance in environmental management,
safety control, and quality management
All suppliers are required to complete the Supplier Questionnaire and the Supplier Code of Conduct and
Questionnaire . Hoshine Silicon adopts an annual performance evaluation model to conduct comprehensive
evaluations of cooperative suppliers from multiple dimensions, including commerce, technology, quality, safety,
Supplier environmental protection, and sustainability management
assessment
The Company implements tiered supplier management, categorizing suppliers into groups such as admitted
suppliers, qualified suppliers, high-quality suppliers, and strategic partners based on performance scores. Priority
is given to suppliers with better performance ratings under equal conditions
For suppliers who fail the assessment, the Company first suspends procurement and issues clear rectification
requirements. Their qualified status can be re-confirmed once they meet the standards. Those who fail to rectify
in time or whose rectification does not meet the requirements are eliminated after approval through prescribed
Supplier exit
procedures
Hoshine Silicon has established a blacklist system for non-compliance management, whereby suppliers involved in
major violations are blacklisted and no longer eligible for cooperation
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Supply chain risk management
The Company strictly guards against supply chain risks to prevent major risk events such as supply chain disruptions. We continuously optimize our management process for supply chain
risks and opportunities. Starting with the admission of new suppliers and the routine management of qualified suppliers, we comprehensively screen and identify potential environmental
and social risks in the supply chain, to strive for win-win partnership based on stable supply chains.
Localized procurement Diversified sourcing Full-process control
The Company implements localized and Hoshine Silicon actively expands supplier The Company establishes strict supplier
nearby procurement strategies to prevent channels and promotes a diversified supplier admission and evaluation mechanisms. Relying
and mitigate potential adverse impacts of layout to ensure the continuity and stability of on the quality information management system,
our supply chain and enhance supply chain raw material supply from the source, reducing we achieve full-process quality monitoring from
stability the risk of reliance on a single supplier raw materials to finished products, avoiding
supply risks from the source
Sustainable procurement
The Company strictly abides by the Bidding Law and other Chinese laws and regulations. We work to build a sustainable supply chain, and continuously strengthen our supplier manage-
ment system. In supplier relations, we improve supplier evaluation mechanisms,regulate supplier ESG performance, and introduce more high-quality strategic partners to build a responsible
and sustainable supply chain.
Sunshine procurement Green procurement Empowerment training
All suppliers are required to sign the The Company incorporates Hoshine Silicon organizes empowerment
Supplier Commitment Letter on Integrity environmental protection requirements training for suppliers focusing on core topics
and the Ten Rules for Supplier Relations . into the supplier evaluation system, such as anti-forced labor, health and safety,
These documents explicitly prohibit giving priority to green, low-carbon environmental protection, business ethics,
violations such as bribery, benefit raw materials and suppliers that meet and labor standards. Such initiatives help
transfer, and insider trading, building a environmental standards to help reduce suppliers improve their ESG management
solid foundation for honest cooperation carbon emissions in the supply chain level and compliance performance
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Fostering People-Centered Growth to Aligning with the SDGs
Build a Better Community Together
Material topics
Employee rights and interests protection, Employee development, Diversity and
inclusion, Occupational health and safety, Community engagement and philanthropy
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Employee Rights and Interests
In accordance with laws and regulations such as China’s Labor Law and the Special Provisions on Labor The Company firmly opposes any form of child labor use and any form
Protection for Female Employees , Hoshine Silicon has established core policies, including the Employee of forced labor. We fully respect employees’ rights to employment, res-
Handbook , to safeguard fundamental employee rights. These policies ensure that all employees—includ- ignation, overtime choice, and freedom of movement.
ing women, ethnic minorities, and employees with disabilities—enjoy equal rights in recruitment, compen-
sation and benefits, working hours, and leave entitlements.
Basic employee rights protection
Equal employment
Following a people-oriented management philosophy, the Company has established policies such as the
Recruitment Management System and the Internal Talent Referral Incentive System to regulate recruit-
ment, hiring, appointment, and performance evaluation processes. We prohibit discrimination based on
race, ethnicity, gender, religion, or physical condition, sign legally compliant labor contracts with all em- Avoidance of child labor
ployees, and clearly define the rights and obligations of both parties. We integrate principles of gender
Verify employee age during onboarding through effective
equality and diversity and inclusion throughout the entire HR management process, including recruitment
procedures to prevent underage employment due to falsified
and job assignment, to foster an open and inclusive workplace.
information
Implement remediation measures for underage workers,
examination, prompt reporting to local labor authorities, safe
Total number of employees return home, and provision of financial or other necessary
Divided by Divided by Divided by Divided by
employment category gender age job level
Prohibition of forced labor
Implement a standard working hour system with an average
of no more than 8 working hours per day, 40 hours per week,
and at least one rest day per week
Require prior consent from employees or their
Full-time employees：18,228 Male：14,454 Age 30 and under：8,905 Senior management ：113
representatives for overtime work
Part-time employees：70 Female：3,774 Between age 30 to 50 Intermediate management：692
(including 50)：8,555
Prohibit any practices that restrict personal freedom or
Junior management：3,402
impose work against employees’ will
Above age of 50：768 Ordinary employee：14,021
*Note: The total number of employees classified by type is the number of full-time employees
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Compensation and benefits Democratic management
The Company adopts a role-based and performance-based compensation system, con- The Company has established the Employee Complaint Handling Procedure and pro-
sisting of base salary, performance-based pay, allowances, bonuses, and commissions. vides multiple reporting channels, including online mailboxes, physical suggestion box-
Employee benefits complement the compensation system and cover both statutory and es, and hotlines. These channels allow employees to raise concerns related to working
company-sponsored programs, providing stable and comprehensive protection. conditions, unfair treatment, or labor rights violations. We will investigate all complaints
thoroughly and handle them in accordance with applicable laws and regulations. Confi-
We have established long-term incentive mechanisms, including employee stock own- dentiality is strictly maintained throughout the process to ensure the protection of em-
ership plans in compliance with relevant laws and regulations. Funded through incentive ployee rights.
reserves, these plans form part of variable compensation and cover mid-level manage-
ment, key technical personnel, and core business staff, aligning rewards with perfor- Employee communication channels
mance and strengthening employee accountability.
Employee HR service
symposiums stations
Employee benefits system Organize regular meetings involving Provide daily HR consultation
employees, department heads, and services and handle employee
HR representatives to discuss and concerns related to recruitment,
address issues related to working training, attendance, and
conditions, compensation, and compensation, including labor
Five social insurances and one housing fund : pension,
medical, unemployment, work-related injury, maternity logistics support rights complaints
insurance, and housing provident fund
Statutory
benefits
Financial benefits:transportation, communication, meal and
General Manager Satisfaction
housing allowances, heat subsidies, holiday benefits, year-end
mailbox surveys
benefits, etc.
Protection benefits: group accident insurance, supplementary Install physical suggestion boxes Continuously conduct employee
medical insurance, critical illness insurance, employee health in office areas to facilitate written satisfaction surveys, develop and
Company- check-ups, etc. feedback and improve internal disclose action plans based on
sponsored
benefits management results
Lifestyle benefits: employee cafeterias, dormitories/housing
subsidies, etc.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Employee care
The Company has established a diversified employee care system that promotes work–life balance and encourages employees to pursue personal interests. During public holidays such as
the Spring Festival, International Women’s Day, Labor Day, and Mid-Autumn Festival, we organize cultural and sports activities, including singing contests, tug-of-war, badminton, and fun
sports events, to strengthen team cohesion and support employees’ physical and mental well-being.
Protection of female employees’ rights Support for ethnic minority employees Support for employees with disabilities Employee support during key life events
Facilities support: establish dedicated Dietary accommodation: provide halal Employment support: employed 209 Provide financial assistance and
rest areas for female employees to food windows in canteens at industrial employees with disabilities across care for major life events, including
ensure privacy; provide lactation parks and factories to respect dietary Jiaxing, Luzhou, Ningbo, Xinjiang, and marriage, childbirth, hospitalization,
rooms to meet the daily needs of customs Inner Mongolia in 2025, assigning roles and bereavement
breastfeeding employees Skills development support: enhance with appropriate labor intensity to
Health protection: offer regular job competencies through tailored ensure stable employment
gynecological examinations and breast programs, including extra bilingual Flexible working arrangements:
cancer screenings to comprehensively training materials and instruction by offer flexible working hours, allowing
safeguard women’s health bilingual trainers; implement one-on- employees to choose suitable schedules
Maternity benefits: implement one pairing between Han Chinese and based on their conditions; support
comprehensive maternity insurance ethnic minority employees to support remote work to reduce commuting
policies covering prenatal check-ups, professional development and improve burdens
childbirth, and postnatal care expenses Mandarin communication skills
Basketball club activities
Festive care: organize International Respect for cultural practices: allow
Women’s Day activities annually, employees from ethnic minority
including thoughtfully prepared groups to observe traditional festivals
gifts and engagement events, such as Eid al-Adha and Eid al-Fitr
demonstrating care and recognition for in accordance with applicable leave
female employees policies
Activities on Employee Family Day
Events on International Women’s Day
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Training and Development We place strong emphasis on employee career development and
continue to optimize our internal job grading system, introducing a
Hoshine Silicon regards talent as the core driver of sustainable development. To align employee “Y-shaped” career development pathway. The management channel
growth with corporate strategy, the Company has optimized its talent management system, refined focuses on enhancing team and organizational leadership capabilities,
career advancement pathways, and established a diversified training and development platform. while the professional channel emphasizes deep specialization in techni-
These efforts empower employees to grow and progress, and promote mutual achievement be- cal or functional domains. This dual-channel system provides clear and
tween talent and the enterprise, strengthening the competitiveness of the workforce. diversified growth directions for all employees.
Career development pathways Professional channel Management channel
We are committed to building a systematic, diversified, and transparent ecosystem favorable to em- Leader level 6
ployees’ career development. In accordance with factors such as functional alignment, competency
requirements, strategic orientation, organizational scale, and market practices, all positions are hor-
izontally categorized into three major channels, eight job families, and 33 sub-families. Within each
job family, positions are further vertically structured according to role responsibilities, job complexity,
Expert Senior Manager level 5
difficulty, and competency requirements. This structure reflects the relative value and impact of each
position within the organizational framework.
Channel Job families
Senior Manager level 4
Operation/Support
Operation Support
Advanced Supervisor level 3
R&D Intermediate level 2
Manufac- Functional
Supply Chain Marketing
Professional turing
Junior level 1
Management
Management
Hoshine Silicon “Y-shaped” career development pathway
Hoshine Silicon position matrix
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Employee training Case
Hoshine Silicon launches “Newcomer Training Camp” to
accelerate employee development
The Company has established a comprehensive training system covering all employees throughout
their entire career lifecycle. Through a combination of offline training, online learning platforms, and In 2025, the Company launched a six-month “Newcomer Training
skills competitions, we continuously enhance our professional development system, providing dif- Camp” program to support 497 newly recruited university graduates
ferentiated and systematic learning resources tailored to employees across different job categories in transitioning into their roles and building a pipeline of key talent.
and levels. We also offer reskilling and upskilling support for employees affected by business adjust- The program included physical training, corporate culture and gen-
ments, enabling them to adapt to rapid workplace changes. eral knowledge sessions, one-on-one mentoring with experienced
instructors, and research projects guided by management mentors.
These initiatives enabled new employees to quickly adapt to the
Tiered training system workplace and acquire essential professional skills.
Hoshine Silicon implements frontline essential knowledge
New employees Professional staff Case
and compliance training program
Provides onboarding training and Develops individual
In 2025, the Company implemented an essential knowledge and
graduate development programs development plans (IDPs) and
compliance training program to systematically enhance workforce
to help new hires quickly delivers targeted training in
capabilities. The program centered on identifying competency re-
integrate into the Company areas such as marketing, HRBP,
quirements for each position, establishing comprehensive competen-
finance, and quality inspection
cy matrices, and developing annual training plans. To ensure effective
execution, dedicated project teams were formed at the factory level,
covering key areas such as process, equipment, environment, safety,
and quality. Senior management participated in joint inspections,
creating a direct communication channel between frontline employ-
ees and executives and strengthening overall governance. During
the reporting period, the program delivered 211,440 training sessions,
Frontline employees Employees on key position significantly enhancing employees’ professional knowledge and job
capabilities.
Implement general capability Cultivate and develop talent
development programs to for key positions to build
enhance the core competencies differentiated competitive
of frontline production employees advantages through strong
talent support
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Occupational Health and Safety
Hoshine Silicon strictly complies with relevant laws and regulations, including China’s Work Safety Law and the Law on the Prevention and Control of Occupational Diseases . The Company
has established a comprehensive safety management system and institutional framework, strengthened employee safety risk prevention and control mechanisms, and actively promoted a
strong safety culture. Through regular emergency drills and systematic hazard identification and mitigation initiatives, we safeguard employees’ occupational health and ensure production
safety, building a robust safety defense. As of the end of the reporting period, 14 subsidiaries had obtained ISO 45001 Occupational Health and Safety Management System certification.
Governance
All business divisions have established organizational structures with clear hierarchies and well-defined roles and responsibilities. Building on this foundation, the Company has developed a
three-tier occupational health and safety (OHS) governance structure, comprising the decision-making, management, and execution levels. The framework clearly defines the authority and
responsibilities at each level, and streamlines cross-level and cross-departmental collaboration, forming an efficient, closed-loop management system.
Approves OHS policies, mid- to long-term goals, and major resource allocations
Decision- Board of Directors, Reviews major safety management systems, accident investigation reports, and reward/penalty decisions
making Work Safety
level Committee members Analyzes safety situation regularly, address major safety issues, and assume ultimate accountability for
safety management
General manager Oversees hazard identification, risk classification and control, and hazard rectification
Organizational of the Business Supervises departmental responsibilities and coordinates cross-functional safety matters;
level Division reports safety information to the decision-making level
Implements safety responsibilities and work permit requirements
Heads of the Safety
Execution and Environment Organizes safety training, emergency drills, and personal protective equipment (PPE)
level Departments of management
each subsidiary
Conducts daily inspections and supports safety audits and corrective actions
Hoshine Silicon occupational health and safety governance structure
The Company has established a series of management systems, including the Work Safety Management System , the Hazardous Work Permit System , the Standards for Personal Protective
Equipment Allocation , and the Occupational Health Management System . These systems cover the full spectrum of safety management requirements, including safety accountability, risk
classification and control, hazard identification and mitigation, and emergency management. Supervision is strengthened through internal monitoring, routine inspections, periodic audits,
and third-party certification. OHS performance indicators are incorporated into departmental and individual performance evaluations and are directly linked to compensation and promo-
tion, supported by both incentive and accountability mechanisms to ensure the effective implementation of all OHS measures.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Strategy
The Company adheres to the strategic principle of “safety first, prevention-oriented, full participation, and continuous improvement”, positioning OHS as a core driver of human capital value
creation. At the leadership level, safety performance is embedded into strategic decision-making and executive evaluations to ensure alignment between resource allocation and strategic
priorities. At the management level, a dual prevention mechanism—comprising risk classification and control as well as hazard identification and mitigation—is implemented, leveraging da-
ta-driven approaches to enable differentiated and tailored improvements across roles. At the technical level, the Company advances initiatives such as mechanization to replace manual la-
bor, automation to reduce workforce exposure, and the deployment of intelligent monitoring systems to mitigate operational risks at the source. At the employee level, training and incentive
mechanisms are applied to strengthen safety awareness and foster a company-wide safety culture, reinforcing the foundation for sustainable development.
Financial Time Influenced
Risk category Risk description Response measures
impact scope value chain
Long-term exposure to dust, toxic gases, Optimize production processes to reduce exposure to hazardous substances
Increased
and noise may lead to occupational Medium Own Conduct regular occupational health examinations and workplace hazard
operating
Health risk diseases such as pneumoconiosis and
costs
term operations monitoring
respiratory illnesses Implement job rotation to reduce prolonged exposure in specific roles
Complex processes in chemical Improve safety operating procedures and strengthen training
Increased
production and equipment operation Short Own
operating Perform regular equipment maintenance and install safety protection devices
Safety risk may lead to injuries, electric shocks, or
costs
term operations
hazardous incidents Strictly enforce hazardous work permit and supervision systems
Inadequate OHS systems or weak Establish and improve OHS management systems and specialized policies
Increased
execution, as well as insufficient Long Own Incorporate safety performance into departmental and individual evaluations,
Management employee awareness, may reduce
operating
term operations with reward and accountability mechanisms
risk effectiveness
cost
Carry out ongoing safety awareness campaigns and skills training
Opportunity Financial Time Influenced
Opportunity description Response measures
category impact scope value chain
Intelligent technologies enable remote equipment
Increase R&D investment and introduce or independent-
monitoring and automated operations, reducing the Lower
Medium Own ly develop intelligent and green production technologies
Technology likelihood of on-site accidents operating
term operations
opportunitie
Provide relevant technical training to employees to facili-
Green technologies reduce the use of hazardous chemicals, costs
tate effective implementation and application
improving the working environment at the source
Lower Proactively respond to regulatory requirements and
Strengthened national regulation on occupational health
operating Long Own improve OHS management standards
Policy and safety encourages enterprises to improve management
costs, higher term operations
opportunitie
Participate in relevant certifications and ratings to gain
practice
brand value policy support
*Note: Short term refers to 1–3 years; medium term refers to 3–10 years; long term refers to more than 10 years
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
The Company places the highest priority on OHS. Leveraging digital plat-
Impacts, risks and opportunities management
forms to strengthen risk management and control, we reinforce our safety
The Company has established a continuous improvement management cycle for OHS that defenses through a three-tier inspection system and closed-loop hazard
covers all operational processes. This framework enables systematic and standardized man- remediation. We deliver tiered and targeted safety training alongside prac-
agement of OHS-related impacts, risks, and opportunities. The process operates on an annual tical drills, ensure the full provision of personal protective equipment and
cycle and is also activated promptly in response to significant changes such as business ad- emergency resources, and enhance our occupational health monitoring
justments or process upgrades, ensuring that employees’ occupational health and personal framework, firmly upholding the bottom line of safe production and employ-
safety are fully protected. ee well-being.
Occupational health and safety management process
Identification 01
Integrate multiple sources of information—including regulatory requirements, historical
incident data, employee feedback, third-party testing reports, and on-site inspection
records—to comprehensively identify OHS-related impacts, risks, and opportunities across
all operations and stakeholders
Assessment 02
Evaluate risks based on likelihood and severity, analyzing their impact on employee
health, business operations, and financial costs, as well as their time horizon, to support
prioritization
Prioritization 03
Give priority to high-level risks that may result in severe injuries or occupational diseases,
while advancing opportunities that enhance safety management efficiency, reduce costs,
and strengthen corporate reputation
Response 04
Implement targeted measures across technical, managerial, and cultural dimensions
based on risk and opportunity levels
Monitoring 05
Establish a full-process dynamic monitoring mechanism, with regular reviews and
optimization to ensure system effectiveness and adaptability
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Occupational health and safety initiatives in 2025
Safety risk control Safety culture development
Systematically identify workplace risks such as dust, noise, and chemical Achieve a 100% pass rate for new employee “three-level safety training”; ensure
exposure; map and classify risk distribution, and implement supervisory controls certification for personnel engaged in special operations; conduct annual safety
for major hazards with management oversight retraining and specialized training on occupational disease prevention and
Promote “mechanization to replace manual labor and automation to reduce emergency response
workforce exposure”, minimizing personnel exposure in high-risk positions; install Establish incentive mechanisms such as “safety points” and “hazard reporting
engineering controls such as soundproof enclosures and dust removal systems rewards,” encouraging employees to report hazards with redeemable points
Establish a three-tier inspection system featuring “monthly company-level recognizing their engagement
inspections, weekly departmental inspections, and daily team inspections”; utilize Organize initiatives such as “Work Safety Month”, “safe team evaluation”, and
digital platforms to achieve full closed-loop management of hazard reporting, “safety letters to families”, and promote safety awareness through bulletin
rectification, verification, and closure, with a 100% on-time rectification rate boards, meetings, and other communication channels
Emergency management Occupational health protection
Develop comprehensive, specialized, and on-site emergency response plans Establish individual occupational health records for employees exposed to
for scenarios such as fires, chemical leaks, and poisoning/asphyxiation, and file hazards; ensure 100% coverage of pre-employment, in-service, and exit health
them with regulatory authorities examinations, with timely job reassignment or treatment for abnormal cases
Equip workplaces with first-aid kits, eyewash stations, and emergency lighting; Develop Standards for Personal Protective Equipment Allocation , provide
establish part-time firefighting or emergency response teams; allocate sufficient compliant protective equipment such as dust masks and earplugs,
protective and medical emergency resources and supervise proper usage
Conduct regular comprehensive and scenario-based emergency drills, including
fire evacuation and hazardous chemical leak response, to enhance emergency
response and coordination capabilities
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Metrics and targets 2025 key performance
Each production base establishes OHS performance indicators tailored to industry risk characteristics, his-
Employee coverage of
torical management gaps, production processes, and workforce structure, with clearly defined annual and
work-related injury insurance
phased targets. Through regular audits and dynamic tracking mechanisms, the Company improves perfor-
mance and management practices, effectively preventing and mitigating various safety risks. 100%
Indicator 2025 Target Progress Employee coverage of work
Medical examination coverage rate for safety liability insurance
employees in occupational hazard positions
Qualified rate of occupational hazard factor
testing
Rectification rate of identified hidden hazards
on schedule
Completion rate of emergency drills 100% Achieved
Certificate holding rate for special operation
personnel
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Social Contribution Case
Hoshine Silicon committed to ethnic unity and shared growth for
seven decades
Grounded in its core competencies and technological expertise, Hoshine Silicon actively 2025 marked the 70th anniversary of the establishment of the Xinjiang Uygur
responds to China’s rural vitalization strategy through practical measures and integrates Autonomous Region. With a long-standing presence in Xinjiang, Hoshine Silicon
the promotion of ethnic unity into its fulfillment of social responsibilities. We establish has integrated forging a strong sense of community for the Chinese nation into
various interactive platforms to deeply engage in community development and partic- its operations. Through a range of targeted measures, we bring different ethnic
ipate in social good initiatives to empower high-quality community development and groups together and contribute to regional ethnic unity and shared growth.
ensure that the outcomes of our growth are shared with the community. Through these
efforts, we strive to foster a mutually beneficial relationship with local communities, em- Eastern Hoshine
bodying the responsibility and commitment expected of enterprises in the new era.
Empowering the career development of ethnic
minority employees through multidisciplinary
skills competitions and targeted one-on-one
Rural vitalization training programs
Regularly holding culturally themed team-build-
In line with China’s strategy of boosting rural vitalization and laying a solid foundation for
ing activities, respecting ethnic minority cus-
common prosperity, we focus on addressing the bottlenecks of rural industries and the
toms, ensuring ethnic minority employees
needs of farming households. We mobilize employees to participate in agricultural sup- In December 2025, Eastern
enjoy their statutory holiday entitlements, and
port activities and work to resolve key challenges such as imbalances between produc- Hoshine was awarded the
organizing dedicated celebrations
tion and market demand and limited resource availability. Through targeted actions, we title of Model Collective in
help expand the distribution channels of agricultural products, increase farmers’ income, Providing ethnic minority employees with tai-
Promoting Ethnic Unity and
and improve rural production and living conditions. By strengthening the connection be- lored support in areas including children’s ed-
Progress (12th batch) by the
tween rural communities and the larger market, we have built a bridge of shared devel- ucation and housing, to address everyday life
Turpan Municipal Government
opment with rural areas, striving for a virtuous cycle of bigger social impact and greater needs
corporate brand value as part of our contribution to rural development.
Western Hoshine
Establishing an exhibition hall themed on
Foster ethnic unity forging a strong sense of community for the
Chinese nation, featuring six sections that
Hoshine Silicon recognizes that ethnic unity is the lifeline of Xinjiang’s development and showcase our initiatives and achievements with
the bedrock of our sustainable growth. Guided by the principle of forging a strong sense documentary films and exemplary stories high-
of community for the Chinese nation, the Company has established three platforms lighting ethnic unity
dedicated to diversity, inclusion, mutual respect, and shared growth. We recruit ethnic Setting up a committee to manage ethnic af-
minority employees to take on key roles and regularly organize culturally themed activi- fairs to promote mutual support mechanisms, Western Hoshine Exhibition
ties that celebrate ethnic diversity. Through sustained humanistic care, we have promot- and conducting ethnic unity education regular- Hall on Forging a Strong Sense
ed closer bonds among employees of different ethnic groups and have been honored as ly, thus embedding the sense of community for of Community for the Chinese
an Exemplary Enterprise for Ethnic Unity. Chinese nation into corporate culture Nation
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Corporate philanthropy
The Company actively engages in corporate philanthropy and implements diverse programs through the Cixi Hoshine Charity Foundation, including assistive device provision and charity
partnerships, to help vulnerable groups participate more fully in society. We also organize regular employee volunteer activities and collaborate with external partners, to deliver practical,
meaningful support and benefits to local communities.
“Together with Me for Barrier-free Love” Free Assistive Device “Together with Me for Caring for Elders” series of volunteer service
Case Case
Rental Programme activities
Focusing on care for vulnerable groups and their greater inclusion in society, To promote the traditional virtues of respecting and honoring the elderly, Hoshine
the Company, through the Cixi Hoshine Charity Foundation, has implemented Silicon, through the Cixi Hoshine Charity Foundation, has worked with Party or-
the “Together with Me for Barrier-free Love” assistive device rental programme. ganizations across different regions to carry out the “Together with Me for Caring
The programme provides assistive devices such as wheelchairs and crutches to for Elders” series of volunteer service activities. These initiatives provide daily
people with disabilities, the elderly, and other residents in need. To date, rental necessities to families in need and offer convenient services such as knife sharp-
stations have been established across 10 towns and sub-districts and 15 villag- ening, haircutting, and blood pressure checking. In addition, we host public rec-
es with 370+ assistive devices distributed, benefiting 2,100+ registered persons reational events featuring age-friendly activities such as ring toss and bean bag
with disabilities and 17,100+ seniors. By harnessing the power of philanthropy, the games, offering seniors both material support and heartfelt companionship.
Company has strengthened the community welfare support and demonstrated
its commitment to corporate social responsibility.
“Warm Hearts in Golden Autumn” Double Ninth
Festival cultural activities for seniors
“Visit to Seniors at Shisan Community” Double
Ninth Festival activities
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Appendixes
Core Production Base
Name Abbreviation Location
Hoshine Silicon Industry Co., Ltd. Hoshine Silicon Jiaxing, Zhejiang
Hoshine Silicon (Shanshan) Industry Co., Ltd. Shanshan Silicon Turpan, Xinjiang
Xinjiang Hoshine Silicon Industry New Materials Co., Ltd. Xinjiang Silicon Industry New Materials Turpan, Xinjiang
Xinjiang Western Hoshine Silicon Industry Co., Ltd. Western Hoshine Shihezi, Xinjiang
Hoshine Silicon (Jiaxing) Industry Co., Ltd. Jiaxing Hoshine Jiaxing, Zhejiang
Hoshine Silicon (Luzhou) Industry Co., Ltd. Luzhou Hoshine Sichuan Pilot Free Trade Zone
Xinjiang Eastern Hoshine Silicon Industry Co., Ltd. Eastern Hoshine Turpan, Xinjiang
Xinjiang Western Hoshine Silicon Materials Co., Ltd. Western Silicon Materials Shihezi, Xinjiang
Shanshan Longsheng Carbon Manufacturing Co., Ltd. Longsheng Carbon Turpan, Xinjiang
Shihezi Western Ningxin Carbon Co., Ltd. Ningxin Carbon Shihezi, Xinjiang
Hoshine Electric Power (Shanshan) Co., Ltd. Shanshan Electric Power Turpan, Xinjiang
Hoshine (Shanshan) Energy Management Co., Ltd. Shanshan Energy Management Turpan, Xinjiang
Xinjiang Western Hoshine Thermal Electric Co., Ltd. Hoshine Thermal Electric Shihezi, Xinjiang
Shihezi Hoshine Green Energy Management Co., Ltd. Xinjiang Green Energy Shihezi, Xinjiang
Xinjiang Central Hoshine Silicon Industry Co., Ltd. Central Hoshine Urumqi, Xinjiang
Horgos Hoshine New Energy Technology Co., Ltd. Horgos New Energy Khorgos, Xinjiang
Shanshan Huayue Briquette Manufacturing Co., Ltd. Shanshan Huayue Turpan, Xinjiang
Shihezi Huaxin New Material Co., Ltd. Huaxin New Material Shihezi, Xinjiang
Xinjiang Hoshine Innovative Material Co., Ltd. Xinjiang Innovation Shihezi, Xinjiang
Ningbo Longsheng Silicon Industry Co., Ltd. Ningbo Longsheng Cixi, Zhejiang
Ningbo Alpha Semiconductor Co., Ltd. Alpha Semiconductor Cixi, Zhejiang
Ningbo Guanghe New Material Co., Ltd. Ningbo Guanghe Cixi, Zhejiang
Xinjiang Jinsong Silicon Industry Co., Ltd. Jinsong Silicon Huyanghe, Xinjiang
Heihe Hoshine Silicon Industry Co., Ltd. Heihe Hoshine Heihe, Heilongjiang
Inner Mongolia Saisheng New Materials Co., Ltd. Inner Mongolia Saisheng Hohhot, Inner Mongolia
Xinjiang Anneng Fire Protection Technology Services Co., Ltd. Anneng Fire Protection Turpan, Xinjiang
Xinjiang Huanxin Environmental Development Co., Ltd. Huanxin Environment Turpan, Xinjiang
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Key Performance Table
Economic performance
Indicator Unit 2024 2025
Revenue RMB billion 26.692 20.499
Total assets RMB billion 90.773 83.607
Total profit RMB billion 2.229 -2.802
Net profit RMB billion 1.702 -3.030
Net profit attributable to shareholders of the parent company RMB billion 1.740 -2.991
Environmental1
Indicator Unit 2024 2025
Energy consumption 2
Direct energy consumption
Diesel consumption ton 9,230.88 8,666.46
Gasoline consumption ton 39.38 40.03
Coal consumption ton 4,927,538.51 4,767,749.06
Natural gas consumption Normal cubic meter 145,423,896.94 55,538,983.99
Indirect energy consumption
Purchased electric power consumption MWh 16,683,618.66 7,836,241.55
Purchased steam ton 381,397.00 323,114.00
Total energy consumption
Total energy consumption (direct) tce 3,693,215.30 3,479,382.83
Total energy consumption (indirect) tce 2,099,464.39 1,004,626.55
Total energy consumption tce 5,792,679.69 4,484,009.38
Integrated energy consumption intensity tce/RMB one million 217.02 218.75
In the initial preparation of the Company’s 2024 Sustainability Report , the ESG data management system was not fully mature. In the current reporting period, the Company has retrospectively revised the 2024 diesel
consumption data, and adjusted four affected indicators accordingly, including total energy consumption (direct), total energy consumption, integrated energy consumption intensity and Scope 1 GHG emissions. We also
have retrospectively revised the 2024 Scope 2 GHG emissions, with corresponding updates to total GHG emissions (Scope 1 and Scope 2) and GHG emissions intensity. Meanwhile, the 2024 data on water withdrawal,
total water consumption and water use intensity have been restated. The Company has unified accounting calibers and optimized data management mechanisms to ensure the authenticity, accuracy and comparability
of disclosed information.
The energy consumption calculation for operations in China is based on the General Principles for Calculation of the Comprehensive Energy Consumption (GB2589-2020) issued by the State Administration for Market
Regulation and the Standardization Administration of China.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Unit 2024 2025
Renewable energy consumption
Renewable energy use kWh 3,567,026,011.94 2,348,928,148.72
GHG emission3
Total GHG emissions (Scope 1 and Scope 2) tCO2e 20,528,400.68 15,715,130.36
Scope 1 GHG emissions tCO2e 11,789,117.03 11,221,841.79
Scope 2 GHG emissions tCO2e 8,739,283.65 4,493,288.57
GHG emission intensity tCO2e/RMB 10,000 7.69 7.67
Water resource consumption
Tap water/municipal water withdrawal ton 20,849,062.80 15,142,662.48
Total water consumption ton 18,701,628.21 13,489,741.51
Water use intensity ton/RMB one million 700.64 658.08
Use of packaging materials
Total packaging materials used ton 54,505.59 52,241.04
Plastics ton 22,398.24 22,882.97
Paper ton 15,405.44 15,404.23
Metal ton 12,692.08 11,520.00
Other Categories ton 4,009.83 2,433.84
Packaging material usage intensity ton/RMB one million 2.04 2.55
Exhaust gas
Total exhaust gas emission 10,000 m? 11,078,808.80 8,592,994.38
Exhaust gas emission intensity 10,000 m?/RMB one million 415.06 419.20
Sulphur oxide emission ton 1,050.72 913.43
Sulphur oxide emission intensity kg/RMB one million 39.36 44.56
Nitrogen oxide emission ton 5,399.66 2,825.21
Nitrogen oxide emission intensity kg/RMB one million 202.29 137.82
VOC emissions ton 6.63 2.77
VOC emissions intensity kg/RMB one million 0.25 0.14
Particulate matter emissions ton 868.11 400.49
Particulate matter emissions intensity kg/RMB one million 32.52 19.54
Scope 1 GHG emissions are accounted for based on the Guidelines for Accounting and Reporting Greenhouse Gas Emissions of Other Industrial Enterprises (Trial) issued by China's National Development and Reform
Commission (NDRC). Scope 2 GHG emissions are accounted for based on the Announcement on the Release of 2022 Electricity Carbon Dioxide Emission Factors issued by Ministry of Ecology and Environment of the
People's Republic of China.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Unit 2024 2025
Wastewater
Total wastewater discharge ton 2,147,434.59 1,652,920.97
COD ton 260.49 128.71
Ammonia nitrogen ton 12.73 4.53
Wastewater discharge intensity ton/RMB one million 80.45 80.64
Waste
Hazardous waste4
Hazardous waste transferred ton 102,512.29 83,791.43
Hazardous waste recycled and reused ton 39,157.37 70,803.09
Hazardous waste treated by other method ton 63,354.92 12,988.34
Hazardous waste intensity ton/RMB one million 3.84 4.09
Non-hazardous waste
Non-hazardous waste collected (non-recyclable) ton 43,899.91 20,507.20
Non-hazardous waste collected (recyclable) ton 520,731.86 698,782.93
Non-hazardous waste intensity ton/RMB one million 21.15 35.09
Social
Indicator Unit 2024 2025
Product quality and safety
Number of product safety and quality accidents case 0 0
Complaint resolution rate % 100 100
Customer satisfaction (out of 100) / 93.48 94.22
Customer privacy breach incidents / 0 0
Hazardous waste transferred equals the sum of recycled and reused volume plus the quantity treated by other methods, including incineration, landfilling and other relevant approaches.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Unit 2024 2025
R&D and innovation
R&D expenses RMB billion 0.575 0.521
Percentage of R&D investment % 2.17 2.58
Number of national science and technology awards / 0 0
Number of supplier collaborations in R&D / 4 3
Number of patents granted to the Company / 675 770
Number of invention patents applied to the main business / 87 68
Number of various standards formulated or revised as a lead or
/ 60 61
participant
Supply chain management
Total number of suppliers / 6,708 7,528
Number of suppliers by region
Number of mainland China suppliers / 6,697 7,512
Northeastern China / 219 233
Northern China / 477 545
Central China / 400 511
Northwestern China / 1,594 1,771
Southwestern China / 511 558
Eastern China / 3,197 3,556
Southern China / 299 338
Number of suppliers from Chinese Hong Kong, Macao and Taiwan / 4 4
Number of foreign suppliers / 7 12
Number of suppliers that have signed the supplier code of conduct / 5,562 1,142 5
Percentage of suppliers that have signed the supplier code of conduct % 82.92 15.17
Number of suppliers conducting ESG/CSR assessments / - 850
Number of ESG/CSR-related training sessions for suppliers time 1 1
Total duration of ESG/CSR-related training for suppliers hour 884 800
Since 2023, Hesheng Silicon has required suppliers to sign the Supplier Code of Conduct . The Company launched the SRM procurement management system in 2024, while partial supplier data has not been fully
migrated. Following the launch of the new system, all suppliers are mandated to sign the Supplier Code of Conduct during the admission process. The relevant data herein are statistically calculated after the official
operation of the new system in 2025.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Unit 2024 2025
Employee rights protection
Union membership rate % 100 100
Violations of labor rights such as child labor, forced labor,
/ 0 16
discrimination, and harassment
Labour contract signing rate % 100 100
Diversity, equality, and inclusion
Total number of employees person 21,994 18,298
Number of employees from ethnic minorities person 8,687 8,677
Number of disabled employees person 278 209
Number of women in management (both junior, middle and senior) person 363 400
Proportion of women in management (both junior, middle and senior) % 8.64 9.51
Employee development
Total full-time employees trained person-times 410,465 211,937
Percentage of employee trained % 100 100
Total hours of employee training hour over 40 million 2,150,184
Average training hours per employee hour - 117.96
Training and development expenses RMB 10,000 416.95 437.05
Occupational health and safety
Employee coverage of work-related injury insurance % 100 100
Employee coverage of work safety liability insurance % 100 100
Work injury insurance expenditure RMB 10,000 1,060.39 858.20
Work safety liability insurance expenditure RMB 10,000 7,712.10 5,845.99
In 2025, one workplace harassment incident occurred. The Company has imposed serious sanctions in accordance with relevant regulations and made disclosure accordingly.
The plants implement an essential knowledge and compliance training program with weekly sessions, leading to elevated aggregate figures in both participant volume and training duration.
In accordance with the Measures for the Implementation of Work Safety Liability Insurance and the disclosure requirements of the Shanghai Stock Exchange, work safety liability insurance is mandatory for high-risk
production entities. This indicator is calculated based only on employees of production subsidiaries, excluding staff of non-high-risk trading subsidiaries.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Unit 2024 2025
Community development and charity
Total funds of social contribution RMB 10,000 224.3 75.0
Total funds for rural vitalization RMB 10,000 33.8 0
Total participation in charity cause person-times Nearly 200 80
Total volunteer service hours hour About 800 About 300
Governance9
Indicator Unit 2024 2025
Business ethics
Total training hours of directors' trained in anti-corruption hour 24 30
Participation of directors' trained in anti-corruption person-times 3 5
Total training hours of management trained in anti-corruption hour 102 87
Participation of management trained in anti-corruption person-times 102 87
Total hours of anti-corruption training attended by employees hour 835 1,326
Participation of anti-corruption training attended by employees person-times 835 1,440
Number of corruption and bribery cases / 1 0
Litigation or major administrative penalties arising from unfair
/ 0 0
competition practices
Number of information security incidents / 0 0
During the initial preparation of the Company’s 2024 Sustainability Report, the ESG data statistical system was not fully mature. In the current reporting period, the Company has retrospectively revised the 2024 data
of three indicators, namely total training hours of directors' trained in anti-corruption, total training hours of management trained in anti-corruption, total hours of anti-corruption training attended by employees. The
Company has unified accounting calibers and optimized data management mechanisms to ensure the authenticity, accuracy and comparability of disclosed information.
The Company has issued the announcement of Hoshine Silicon on receiving the Criminal Judgment and the Litigation Progress on August 16, 2024.
Hoshine Silicon Industry Co., Ltd. 2025 Sustainability Report
Indicator Index Table
Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial)
Category Issue Corresponding Article Page
Climate Change Response Articles 21 to 28 23-26
Pollutant Emissions Article 30 30-34
Waste Disposal Article 31 34
Ecosystem and Biodiversity Conservation Article 32 22
Environment
Environmental Compliance Management Article 33 21-22
Energy Utilization Article 35 26-27
Water Resource Utilization Article 36 28
Circular Economy Article 37 29
Rural Revitalization Article 39 62
Social Contribution Article 40 62-63
Innovation-driven Article 42 44-48
Science and Technology Ethics 1
Article 43 Not applicable
Society Supply Chain Security Article 45 49-50
Equal Treatment of Small and Medium-sized Enterprises 2
Article 46 Not applicable
Safety and Quality of Product / Service Article 47 38-43
Data Security and Customer Privacy Protection Article 48 19, 43
Employee Article 50 52-61
Due Diligence Article 52 13-14
Sustainable
Development Stakeholder Communication Article 53 13
Related Anti-Commercial Bribery and Anti-Corruption Article 55 17-18
Governance
Anti-Unfair Competition Article 56 19
The Company's main business does not involve scientific research, technological development, or other activities related to ethical sensitive fields such as life sciences and artificial intelligence.
At the end of the reporting period, the balance of accounts payable (including notes payable) of the Company did not exceed RMB 30 billion yuan, and the proportion did not exceed 50% of the total assets.
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