Transparent Governance and Information Disclosure

• ESG Governance

  • 1. Risk Management

    

    The company has established a comprehensive ESG risk management system to effectively identify and respond to various risks, maintaining a dynamic ESG risk register covering 47 specific risk points across 12 major categories. Risk levels and response measures are updated quarterly, with risk response times reduced to within 24 hours. No major environmental compliance incidents have occurred in the past decade:

    ESG Risk Assessment:

    Comprehensive ESG risk assessments are conducted annually to identify potential risks across environmental, social and governance areas, develop response plans, and integrate ESG risks into the enterprise-wide risk management framework.

    Environmental Compliance Risk Prevention:

    A dynamic environmental compliance monitoring mechanism has been established to track policy and regulatory changes in real time, conduct regular compliance audits, and ensure all business activities meet the latest environmental regulations. No major environmental compliance incidents have occurred in the past decade.

    Climate Change Response Strategy:

    Climate change response plans have been developed to assess the impact of extreme weather and carbon policy changes on business operations, conduct stress tests, and enhance the company's capacity to manage climate-related risks.

    Risk Register Management:

    A dynamic ESG risk register has been established covering 47 specific risk points across 12 major categories, including climate change risks, environmental policy risks and supply chain disruption risks. Risk levels and response measures are updated quarterly, with response times reduced to within 24 hours.

  • 2. Business Ethics

    

    The company operates in strict compliance with regulations and upholds business ethics. Anti-corruption training of no less than 8 hours is conducted annually, covering all management positions and key roles in procurement and sales. An anonymous reporting channel has been established with responses to reported leads within 24 hours. No major corruption cases have occurred in the past five years, achieving a 100% business ethics compliance rate:

    Anti-Corruption Policy:

    A comprehensive anti-corruption management system has been established, including training programmes, reporting channels and investigation mechanisms to eliminate commercial bribery and conflicts of interest, fostering a transparent and integrity-driven business environment.

    Fair Competition Policy:

    The company strictly complies with anti-monopoly and anti-unfair competition laws and regulations, opposes any form of unfair competitive practices, and maintains a fair and orderly market environment.

    Intellectual Property Protection:

    A robust intellectual property management system has been established to protect proprietary R&D achievements and respect the IP rights of others. No major IP disputes have occurred in the past three years.

    Anti-Corruption Mechanism:

    Anti-corruption training of no less than 8 hours is conducted annually, covering all management positions and key roles in procurement and sales. An anonymous reporting channel has been established with responses to reported leads within 24 hours. No major corruption cases have occurred in the past five years, achieving a business ethics compliance rate of 100%.

  • 3. Compliance Operations

    

    The company operates in strict compliance with laws and regulations, maintaining transparent information disclosure. Two internal compliance audits and one third-party external audit are conducted annually, covering all business processes, with a 100% rectification rate for identified issues, ensuring full compliance with legal and regulatory requirements:

    Compliance Reporting:

    An annual environmental compliance report is published disclosing environmental performance, pollutant emissions and environmental investment, subject to public scrutiny.

    Certification Disclosure:

    All relevant qualification certificates are published on the official website, including environmental management system certification, quality management system certification, green product certification and safety production permits, for stakeholder reference.

    Compliance Audit:

    Third-party compliance audits are conducted annually to ensure business activities comply with legal, regulatory and internal management requirements. Audit results are reported to the Sustainable Development Committee.

    Audit System:

    Two internal compliance audits and one third-party external audit are conducted annually, covering all business processes, with a 100% rectification rate for identified issues, ensuring full compliance with legal and regulatory requirements.

• Information Disclosure

  • 1. Sustainability Report

    

    The company prepares and publishes annual sustainability reports in accordance with international standards. Since 2020, we have published sustainability reports for 6 consecutive years. The 2025 report received a "Five-Star" rating in the China Corporate Social Responsibility Report Rating, with disclosure completeness and transparency at a leading level in the industry:

    Reporting Standards:

    Benchmarked against the Global Reporting Initiative (GRI) Standards, the Shenzhen Stock Exchange ESG Disclosure Guidelines and other mainstream domestic and international disclosure standards, ensuring comprehensive, authentic and comparable report content.

    Report Content:

    Includes complete ESG quantitative data, strategic progress, practical case studies and future plans. All quantitative data is verified by third-party organisations to ensure data accuracy.

    Download Centre:

    This page provides download links for sustainability reports published since 2020. Users can download and review them free of charge.

    Disclosure History:

    The company has published sustainability reports for 6 consecutive years since 2020, with report quality improving year on year. The 2025 report received a "Five-Star" rating in the China Corporate Social Responsibility Report Rating, with disclosure completeness and transparency at a leading level in the industry.

  • 2. ESG Ratings & Awards

    

    The company's ESG performance has gained wide recognition from the industry and capital markets. Our MSCI ESG Rating is A, one of the highest ratings in the domestic water-based new materials industry. We have also achieved a China Securities Index (CSI) ESG Rating of AA and a Hang Seng ESG Rating of A:

    ESG Ratings:

    MSCI ESG Rating of A, one of the highest in the domestic water-based new materials industry, alongside a CSI ESG Rating of AA and a Hang Seng ESG Rating of A.

    Industry Awards:

    We have received multiple honours including "China New Materials Industry Sustainable Development Benchmark Enterprise", "National Green Supply Chain Management Enterprise" and "Zhejiang Province Low-Carbon Development Advanced Enterprise".

    Certifications:

    We hold multiple national demonstration certifications including National Green Factory, National Green Design Product and National Specialised and Innovative "Little Giant" Enterprise.

    Rating Improvement Journey:

    Our ESG ratings have improved year on year, from MSCI BB in 2020 to A in 2025, and CSI ESG from BBB to AA, reflecting the company's continuous enhancement of sustainable development capabilities.

  • 3. Communication Channels

    

    The company has established open communication channels with stakeholders. We welcome supervision and suggestions from all sectors of society and have implemented a closed-loop feedback handling process. All feedback is logged in a register with clear responsible persons and deadlines. Our feedback response rate reaches 100%, and outcomes are promptly communicated to the feedback providers. All 127 feedback items received in 2025 were properly addressed, achieving a satisfaction rate of 96%:

    Contact for Enquiries:

    For sustainability-related enquiries, please contact us via email at esg@changfengxcl.com or by phone at 0571-xxxxxxx. We will respond within 3 working days.

    Feedback Channel:

    This page provides a dedicated feedback entry point. Stakeholders can submit comments and suggestions at any time, and we will carefully address every piece of feedback.

    Annual Communication Meeting:

    We hold an annual stakeholder communication meeting on sustainable development, inviting investors, customers, suppliers, employees, media and community representatives to exchange views on sustainability progress and plans.

    Feedback Handling Mechanism:

    We have established a closed-loop feedback handling process. All feedback is logged in a register with clear responsible persons and deadlines. Our feedback response rate reaches 100%, and outcomes are promptly communicated to the feedback providers. All 127 feedback items received in 2025 were properly addressed, achieving a satisfaction rate of 96%.