1. Occupational Health

1. Occupational Health and Safety Management System

We have established a sound occupational health and safety management system, forming a four level management organizational structure of "QHSE Planning Department - Regional Quality Management Department - HSE Management Department of Local Companies – Each Company and Department", and continue to promote our own occupational health and safety management system certification work.

We strictly abide by the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, formulating the QHSE Accident and Incident Management Measures. Detailed provisions are made on the types of accidents and incidents, their level, processing process, rectification and acceptance, etc., to standardize the management and treatment of all kinds of accidents and incidents that may occur in the course of work. To promote overall safety management and culture, we have formulated QHSE Reporting Management Measures to encourage employees to monitor and report management deficiencies and risks associated with QHSE and to avoid or reduce occurrence of accidents. The Group issued General Requirements for Group HSE Management, in order to implement the "safety first, prevention-based" production policy, and integrate HSE work into the business process to promote the effective implementation of HSE management responsibilities. Under the co-ordination of the Group, the subsidiaries have issued the Occupational Health Management Measures, Hazardous Chemicals Safety Management Measures, Individual Protective Equipment Management Measures and other HSE management systems, and established and improved production safety responsibility systems.

2. Occupational Health and Safety Training

According to national safety production policies and laws, we have formulated the HSE Training Management Measures and annual safety training and education plans. We have developed relevant training plans for all employees and employees from external suppliers, conducted safety training and education, and conducted regular assessments.

We strictly prescribe three levels of education and appraisal for new employees at the company level, departmental level and class level to ensure that the practitioners have the necessary production safety knowledge, familiar with production safety regulations and safety operating procedures, master the safety skills of the position, and understand emergency management measures for accidents.

We formulate the QHSE Knowledge Assessment and Management Regulations for Middle Management Cadres. We regularly evaluate the QHSE knowledge of middle management cadres each year. The achievements are linked to the promotion and salary of middle management cadres.

We promote a safety culture and education for all and provide daily safety training and education for all employees. Since 2022, our subsidiaries across the country have intensified their efforts in HSE education and training. By the end of the reporting period, a total of 7,020 employees have participated in HSE education and training, with a total of 15,332 hours training.

2. Operational Safety

We place great importance on protecting the health and safety of our employees, customers and third parties. We have health and safety policies in place that comply with all laws, regulations and standards, and take the best possible precautions against accidents. We have released relevant systems and processes for safety production management, promoting and implementing personal code of conduct in daily workplaces to protect the health and safety of employees, customers, and third parties. We ensure that the working environment complies with the industry's health design standards and requirements. In the event of a problem, employees will report it by the relevant system guidelines. The Company will record and investigate all reported health and safety incidents and take corrective actions. We require our employees to understand the operating procedures and technical specifications of the work equipment and to ensure the safety of the person, facility and environment.