Social Responsibility in a Diverse Society

• User & Partner Responsibility

  • 1. Product Quality & Safety

    

    The company consistently prioritises product quality and safety, safeguarding user health and well-being. We have established a full-process quality control system covering everything from raw material intake to product dispatch, with 28 quality inspection checkpoints. Our product pass rate remains above 99.8%, and all products have obtained multiple authoritative domestic and international certifications, including ISO 9001, EU REACH, RoHS, and US FDA food-contact safety certification:

    Full-Process Quality Control:

    We have established a full-process quality control system covering everything from raw material intake to product dispatch, with 28 quality inspection checkpoints. Our product pass rate remains above 99.8%.

    Product Safety Certifications:

    All products have obtained multiple authoritative domestic and international certifications, including ISO 9001, EU REACH, RoHS, and US FDA food-contact safety certification, meeting safety requirements across diverse applications.

    Customer Health Assurance Commitment:

    We commit that all products meet the highest health and safety standards, providing publicly available product ingredient lists and test reports, and accepting inspection and supervision from customers and third-party organisations.

    Test Parameters:

    We have established rigorous product testing standards covering 126 core parameters, including VOC content, formaldehyde emission, and heavy metal content. Our VOC detection precision reaches 0.1g/L, far exceeding industry standards, ensuring product quality and safety.

  • 2. Supply Chain Partner Growth

    

    The company is committed to growing together with supply chain partners, building a mutually beneficial industrial ecosystem. Over the past three years, we have helped 32 suppliers complete low-carbon upgrades, reducing their average production costs by 15%. In 2025, we have served over 180 SME customers:

    Supplier Empowerment Programme:

    We provide core suppliers with technical support, management training, and financial assistance to enhance their green production capabilities and management standards. Over the past three years, we have helped 32 suppliers complete low-carbon upgrades, reducing their average production costs by 15%.

    SME Green Transition Support:

    We offer SME customers a green transition solution package, including product selection guidance, application technology training, and green certification consulting, helping them reduce the cost of their green transition. In 2025, we have served over 180 SME customers.

    Fair Procurement Mechanism:

    We have established an open and transparent procurement system that eliminates unfair competition practices. We treat suppliers of all sizes equally and prioritise procurement allocation to smaller suppliers with strong green performance.

    Supplier Empowerment Case Study:

    In 2024, we provided a low-carbon upgrade technical solution to an upstream raw material supplier, helping them reduce energy consumption per unit of product by 22% and save RMB 8 million in annual production costs. The supplier successfully obtained National Green Factory certification, achieving mutual benefit for both parties.

  • 3. Customer Value Co-Creation

    

    The company engages in deep collaboration with customers to jointly create environmental and economic value. We have established joint R&D centres with 27 leading industry customers to develop future-oriented green material application technologies, accumulating 35 joint R&D patents and sharing technological achievements:

    Customised Solutions:

    Based on customers' specific application scenarios and environmental requirements, we provide customised water-based material solutions, helping customers reduce environmental costs and enhance product competitiveness.

    Representative Collaboration Case:

    We supplied a full range of water-based home furnishing synthetic leather materials to a renowned domestic home furnishing company, helping its products achieve E0-grade environmental standards and obtain China Green Product certification. This resulted in a 12% product premium and a 25% increase in annual sales.

    Joint R&D Innovation:

    We have established joint R&D centres with 27 leading industry customers to develop future-oriented green material application technologies, accumulating 35 joint R&D patents and sharing technological achievements.

    Joint R&D Achievement:

    In collaboration with an automotive manufacturer, we developed a specialised water-based automotive interior material with VOC content 90% lower than industry standards. This helped the manufacturer's multiple vehicle models obtain China Eco-Automobile certification, significantly enhancing their market competitiveness.

• Employee Development

  • 1. Occupational Health & Safety

    

    The company strictly implements occupational health and safety management requirements to protect employees' health and safety rights. VOC concentration in production workshops is controlled below 0.5mg/m³, far lower than the national occupational health standard of 10mg/m³. The occupational disease incidence rate over the past five years is 0:

    Safety Protection System:

    Production workshops are equipped with comprehensive safety protection facilities and personal protective equipment. An automated safety monitoring system has been established to monitor workshop environmental parameters in real time, ensuring the production environment meets occupational health and safety standards.

    Occupational Disease Prevention:

    Occupational health records are established for all employees, with annual occupational health examinations organised. Targeted protective measures are implemented for key positions. No major occupational disease cases have occurred in the past decade.

    Safety Training:

    At least 40 hours of safety training are conducted annually, covering all employees, including safe production operating procedures, emergency response, and occupational health protection. The annual safety training coverage rate reaches 100%.

    Protection Standards:

    VOC concentration in production workshops is controlled below 0.5mg/m³, far lower than the national occupational health standard of 10mg/m³, providing employees with a safe and healthy working environment. The occupational disease incidence rate over the past five years is 0.

  • 2. Talent Development System

    

    The company has established a comprehensive talent development system to support employee career growth. Over the past three years, 127 employees have been promoted through the dual promotion pathway, with R&D staff receiving RMB 5.2 million in cumulative innovation awards through technology innovation projects. The core technical team has an average tenure of over 8 years, with talent stability at a leading level in the industry:

    Career Pathways:

    A dual promotion pathway combining management and professional tracks has been established, allowing employees to choose their development direction based on personal aspirations. The fair and transparent promotion mechanism ensures outstanding talent stands out.

    Skills Training:

    At least 1.5% of annual revenue is invested in employee training, including onboarding, job skills, management capabilities, and technology innovation training. In 2025, over 210 training courses were delivered, covering more than 3,000 employee attendances.

    Innovation Incentives:

    An employee innovation incentive mechanism has been established with a dedicated innovation award fund, encouraging employees to pursue technological, managerial, and process innovation. Over the past three years, employee innovation projects have generated over RMB 80 million in economic value for the company.

    Talent Growth Case:

    Over the past three years, 127 employees have been promoted through the dual promotion pathway, with R&D staff receiving RMB 5.2 million in cumulative innovation awards through technology innovation projects. The core technical team has an average tenure of over 8 years, with talent stability at a leading level in the industry.

  • 3. Employee Rights Protection

    

    The company strictly complies with labour laws and regulations, protects employees' legitimate rights and interests, and fosters harmonious labour relations. The employee turnover rate has remained below the industry average for five consecutive years. An employee care fund has been established, providing over RMB 3 million in cumulative assistance to employees in need:

    Equal Employment Policy:

    The company adheres to the principle of equal employment, eliminating all forms of employment discrimination, and ensuring employees of different genders, ages, ethnicities, and backgrounds enjoy equal career development opportunities.

    Benefits Package:

    Comprehensive benefits are provided, including social insurance and housing fund, paid annual leave, annual health check-ups, festival benefits, children's education subsidies, and housing allowances, addressing employees' concerns.

    Employee Care:

    An employee care mechanism has been established, with regular employee satisfaction surveys, cultural and sports activities, assistance for employees in difficulty, and psychological counselling. A warm corporate atmosphere is fostered, with the employee turnover rate remaining below the industry average for five consecutive years.

    Benefits Package:

    In addition to statutory benefits, the company provides children's education subsidies of RMB 5,000 per person per year, housing allowances of up to RMB 2,000 per month, and annual health check-up standards of RMB 1,500 per person per year. An employee care fund has been established, providing over RMB 3 million in cumulative assistance to employees in need.

• Social Contribution

  • 1. Industry Leadership

    

    As an industry leader, we actively drive the development of the water-based materials sector. To date, we have participated in the formulation of 18 national, industry and group standards, leading the drafting of 5 of these as the primary drafter. These standards cover product performance, environmental requirements, testing methods and other key areas, promoting the standardised development of the industry:

    Standard Development:

    We have participated in the formulation of 18 national, industry and group standards, leading the drafting of 5 as the primary drafter. These cover product performance, environmental requirements, testing methods and more, driving industry-wide standardisation.

    Public Service Platform:

    We lead the construction of a provincial-level green technology innovation centre for water-based materials, integrating industry, academic and research resources to develop common technologies. Our R&D equipment and testing services are open to the entire industry, providing over 200 technical services in the past three years.

    Industry-Academia-Research Collaboration:

    We have established long-term partnerships with 12 universities and research institutions, including Zhejiang University, University of Science and Technology of China, and the Ningbo Institute of Materials Technology & Engineering, CAS. We have carried out 32 collaborative projects, achieving a commercialisation rate of over 70% for research outcomes.

    Standard Achievements:

    As the primary drafter of the industry standard Polyurethane Resin for Water-based Synthetic Leather, we filled a domestic gap in this field. Since its implementation, the standard has driven an average 35% improvement in the environmental performance of industry products, significantly advancing the standardised development of the water-based synthetic leather sector.

  • 2. Community Engagement

    

    We are committed to giving back to the community. Over the past three years, we have invested RMB 12 million in public welfare initiatives, restored over 200,000 m² of ecological areas, supported more than 260 underprivileged students, and built 2 Hope Schools, contributing to rural revitalisation and educational development:

    Ecological Protection:

    We continuously participate in ecological protection projects around our facilities, including river management, hillside re-greening and biodiversity conservation. Over the past three years, we have invested RMB 12 million and restored over 200,000 m² of ecological areas.

    Environmental Education:

    We have established a water-based materials environmental education base, open to the public free of charge. Through educational activities, we promote knowledge of green materials, welcoming over 15,000 visitors in the past three years.

    Rural Revitalisation and Education Support:

    We carry out targeted assistance programmes, helping 3 underdeveloped villages develop distinctive industries. We have supported over 260 underprivileged students and built 2 Hope Schools, contributing to rural revitalisation and educational development.

    Public Welfare Programme Outcomes:

    In 2025, our Green Materials for Rural Schools initiative provided free eco-friendly water-based architectural coatings to schools in 12 villages, renovating over 30,000 m² of school buildings and benefiting more than 8,000 teachers and students, significantly improving rural teaching environments.

  • 3. Emergency Response

    

    We actively fulfil our social responsibilities and respond proactively to public emergencies. Over the past three years, we have participated in 12 emergency support operations, safeguarding local ecological security, and donated over RMB 8 million in cash and goods to disaster-affected areas to support reconstruction:

    Environmental Emergency Support:

    We have established a professional environmental emergency response team, equipped with emergency handling equipment and supplies, to participate in local environmental emergency response missions. Over the past three years, we have taken part in 12 such operations, safeguarding local ecological security.

    Disaster Relief Donations:

    In the event of major natural disasters, we donate supplies and funds immediately. Over the past three years, we have donated over RMB 8 million in cash and goods to disaster-affected areas to support post-disaster reconstruction.

    Public Health Emergency Response:

    During public health emergencies, we proactively adjust production capacity to manufacture water-based materials required for epidemic prevention supplies, ensuring supply and contributing to pandemic control efforts.

    Emergency Support Case Study:

    The effective fulfilment of social responsibility relies on sound internal governance and transparent external communication. We continuously improve our ESG governance system, proactively disclose our sustainable development progress, and ensure the long-term, stable advancement of all initiatives, subject to public oversight.

  • 4. Transparent Governance: Compliant Operations and Public Disclosure

    

    A robust governance system and transparent information disclosure are essential to the continued advancement of sustainable development. We have established a standardised ESG governance mechanism, proactively disclose our sustainable development progress and achievements, and accept oversight from all stakeholders. We continuously enhance our sustainability management capabilities to ensure the steady and long-term implementation of our green development strategy.