In this Report, "Ancai Hi-Tech", "the Company", "we" or "us" refers to Henan Ancai Hi-Tech Co., Ltd. and its subsidiaries.
You can download the electronic version of this Report from the website of the Shanghai Stock Exchange (www.sse.com.cn) or Henan Ancai Hi-Tech Co., Ltd. (www.acht.com.cn) and obtain more information on corporate social responsibility.If you have further inquiries, questions, or feedback regarding this Report, you can contact the Company through thefollowing contact information:
Address: South Zhongzhou Road, Anyang City, Henan ProvinceTel.: 0372-3732533E-mail: achtzqb@acht.com.cn
The scope of this Report encompasses Henan Ancai Hi-Tech Co., Ltd. and its subsidiaries. This Report is publishedannually, covering the period from January 1, 2024 to December 31, 2024. Some content or data may refer to previousyears or extended to future years. This Report is presented in Chinese Renminbi (RMB).
About This Report
Reporting Scope
Data Source
Compilation Basis
This Report is the firstEnvironmental, Social and Governance Reportof Henan Ancai Hi-Tech Co., Ltd. (referred to as"Ancai Hi-Tech", "the Company", "we" or "us"). The purpose of this Report is to comprehensively demonstrate theCompany's commitment to environment, social and governance management in its operational processes to investors,employees, partners, and other stakeholders.
Unless otherwise stated, the data in this Report is derived from the Company's disclosed periodic reports or interimannouncements, as well as internal statistical data. Some data may include historical information.
This Report is prepared in accordance with theGuidelines No. 14 of the Shanghai Stock Exchange for Self-regulation ofListed Companies - Sustainability Report (Trial)and the requirements of theGlobal Reporting Initiative Standards(GRIStandards).
Addressing and Representation
Access Options
AbbreviationFull Name
Ancai Hi-Tech, the Company, we or usHenan Ancai Hi-Tech Co., Ltd.Henan Investment GroupHenan Investment Group Co., LtdAncai Photovoltaic New MaterialsHenan Ancai Photovoltaic New Materials Co., Ltd.Ancai Photothermal TechnologyHenan Ancai Photothermal Technology Co., Ltd.Ancai EnergyHenan Ancai Energy Co., Ltd.Jiaozuo AncaiJiaozuo Ancai Advanced Material Co., Ltd.Xuchang AncaiXuchang Ancai New Energy Technology Co., Ltd.Xinhe IndustryPuyang Xinhe Industry Development Co., Ltd.
Introduction
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairman
of the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Address by Chairman of the Board
Over the past three decades, Ancai Hi-Tech has always adhered to the corporate mission of "challenging the world'sadvanced level and contributing to the civilization of human society". We started with the operation of CRT electronicglass, becoming a symbol of the national industry at that time. Today, we have transformed and deepened our presencein the eld of new energy, committed to promoting green and low-carbon development. We have diversied our businessinto photovoltaics, photothermal, natural gas, pharmaceutical glass, and intelligent manufacturing. Through challengesand achievements, Ancai Hi-Tech remains dedicated and determined.Against the backdrop of the "carbon peaking and carbon neutrality" goals leading global green transformation, AncaiHi-Tech deeply integrates the ESG concept into strategic decision-making and business practices. In 2024, we built afoundation of compliance governance, driven by green development, with a focus on creating a harmonious society.Through these efforts, we were able to promote the sustainable development of the Company and contribute to the co-creation of social value.
Implementing the carbon peaking and carbon neutrality strategy throughout the entire chain to safeguard the ecology.We actively respond to the international consensus on reducing greenhouse gas emissions and mitigating climate change.We deeply adhere to the development concept of "Lucid waters and lush mountains are invaluable assets " and activelypractice the national "carbon peaking and carbon neutrality" strategy. We contribute to optimizing the energy structure,aiming to apply lower-carbon and more energy-efcient models and technologies in various aspects of production andoperations. From the construction of green factories and the promotion of clean energy utilization to the implementationof energy-saving projects and the refined management of waste and pollutants, we have consistently protected thegreen mountains and clean water of this land through actions. We strive to leave a better ecological environment forfuture generations.
Full-process control to create a benchmark for responsible manufacturing. We adhere to "responsible manufacturing" witha focus on customer needs. We value customer experience and precisely control the entire process of product design,development, manufacturing, and sales services. With excellent quality and dedicated service, we have earned customerrecognition and established long-term, mutually trusted relationships with domestic and international customers.
Scaling technological heights to lead the low-carbon transformation. We implement a strategy of promoting enterprisedevelopment through technology and effectively promote technological innovation. Since establishment, we have beenconsistently focused on the research and development of high-end glass. We rely on a mechanism of technologicalinnovation, building innovative platforms and a robust R&D system. We have increased investment in research anddevelopment, aiming to achieve product and process innovation. We bravely scale the heights of technological innovationand adhere to innovation for development. We continue to drive innovation through ongoing research and development,using technological breakthroughs to propel the industry's low-carbon transformation.
Creating a transparent supply chain for value symbiosis. We co-build an ecological system with our suppliers to achievevalue symbiosis. We establish a supplier access mechanism, provide technical assistance, and assist suppliers inenhancing their product and service levels. We establish a "Sunshine Procurement" platform to ensure transparency andfairness in the supply chain, safeguarding the legitimate rights and interests of upstream and downstream enterprises.We strive to create a sustainable partner ecosystem, deepen strategic collaboration, and achieve value symbiosis in thesupply chain.
Green practice
Quality-centric
Innovation-driven development
Co-building ecological system
Building a happy workplace and empowering mutual growth. The Company always prioritizes its employees and builds ahappy workplace. We pay attention to employees' occupational health and create a "Healthy Ancai" system. We provideemployee care from various aspects such as compensation, training, and recreational activities to enrich their personallives outside of work. We fully guarantee employees' rights and development, achieving mutual growth between theCompany and its employees.
Assisting in rural revitalization and achieving win-win development. In response to the national call and the practice ofrural revitalization, we fulll our social responsibility. We promote the development of surrounding industries by focusingon our own development. This includes procuring logistics and transportation services from the surrounding areas andcreating employment opportunities, achieving mutual benets and win-win outcomes.
Establishing a strong foundation for standard operations. Ancai Hi-Tech upholds the concept of operating in compliancewith laws and regulations. We continuously improve our governance system, enhance risk management mechanisms,and uphold business ethics. We have built a management structure with clear responsibilities and well-dened division oflabor. By strengthening the coordination and cooperation among departments and ensuring smooth process connections,we comprehensively enhance the level of standardized operations.
Empowering modern governance patterns. The Company strengthens Party building leadership, leverages grassrootsParty organizations as strongholds, and encourages Party members to serve as exemplary models. This promotes thedeep integration of Party building work with production and operation, creating a new pattern of efcient governance fora modernized enterprise. This solidies the foundation for sustainable development.With the winds blowing in our sails, we courageously shoulder heavy responsibilities and forge ahead. We express ourgratitude to the shareholders, partners, and counterparts who have supported and cared for the development of AncaiHi-Tech over the years. Ancai Hi-Tech deeply understands the importance of responsibility and compassion in businessvalue. We will always adhere to promoting human well-being as our starting point. Together with our shareholders, westrive for development, share growth with our employees, achieve harmonious coexistence with nature, and resonatewith society. Let the starlight of responsibility converge into a brilliant galaxy that illuminates the future!
Employee-centric
Social responsibility
Compliance as the foundation
Party building leadership
Henan Ancai Hi-Tech Co., Ltd.Chairman of the Board Dongwei Xu
Environmental, Social and Governance Report 2024
About ThisReport
Address by Chairmanof the Board
Key ESG
Performance DataHonors andAwards
Introduction to
Ancai High-Tech
Corporate Governance and
Party Building Leadership
Product Innovation and
Supply Chain Management
Environmental Management
and Sustainability
Employee Care and
Social Welfare
Appendices
Key ESG Performance Data
Economic performance
Governance performance
Environmental performance
Social performance
Operating revenue
RMB
4.339
billion
Number of GeneralMeeting ofShareholders held
Environmental protection investmentRMB
70.0617
million
R&D investment
RMB
million
Reduction in CO
emissionsthrough clean energy adoption83,200
tons of CO
e
Employee training coverage rate100%
Total taxRMB
million
Number of Board ofDirectors’ meetingsheld
Number of Board ofSupervisors' meetingsheld
CO
emissions
919,400
tons of CO
e
Safety investmentRMB
19.1522
million
Employee social security contributionsRMB
72.4339
million
Amount of recycled water92,903,900
tons
Social public welfare investmentRMB639,300
Total amount of waste recycled138,517.50
tons
Number of incidents ofcommercial bribery andcorruption
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Honors and Awards
2024-Advanced Unit in Party
Building WorkCommunist Party Committee ofAnyang State-owned Enterprises
2024-Leading Enterprise in Manufacturing
Industry of Henan ProvinceDepartment of Industry and Information
Technology of Henan Province
2024-Green Factory of Henan Province
Department of Industry andInformation Technology of Henan
Province
2024-Provincial Leader in Water
Efciency
Department of Industry andInformation Technology of Henan
Province
2024-Hi-tech EnterpriseDepartment of Science andTechnology of Henan Province
2024-Specialized, Rened, Differential,
and Innovative SMEsDepartment of Industry andInformation Technology of Henan
Province
2024-Innovative SMEs of Henan ProvinceDepartment of Industry andInformation Technology of Henan
Province
2024-Single Champion Enterpriseof Manufacturing Industry in Henan
ProvinceDepartment of Industry and InformationTechnology of Henan Province
Ancai Hi-Tech
Xuchang Ancai
Xuchang Ancai
Xuchang AncaiXuchang Ancai
Ancai PhotovoltaicNew Materials
Ancai PhotothermalTechnology
Xuchang Ancai
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance and
Party Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
2023-Civilized Unit of Henan ProvinceThe Communist Party of ChinaHenan Provincial Committee andthe People's Government of Henan
Province
2023-Intelligent Factory of Henan
ProvinceDepartment of Industry andInformation Technology of Henan
Province
2023-Engineering Research Center of
Henan ProvinceDevelopment and ReformCommission of Henan Province
2023-Advanced Unit in Clean
ProductionDepartment of Ecology andEnvironment of Henan Province
2023-"Occupational Health Expert" andExcellent Organization UnitHealth Commission of Henan Provinceand Henan Federation of Trade Unions
2023-Demonstration Enterprise ofDigital Transformation of Henan
ProvinceDepartment of Industry and InformationTechnology of Henan Province2024-Solar Photovoltaic GlassEngineering Technology ResearchCenter of Henan ProvinceDepartment of Science and Technology
of Henan Province
Ancai Hi-TechJiaozuo Ancai
Ancai PhotovoltaicNew Materials
Ancai PhotovoltaicNew MaterialsAncai PhotothermalTechnology
Ancai Photovoltaic
New Materials
Ancai Photothermal
Technology
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
About Ancai Hi-Tech
Henan Ancai Hi-Tech Co., Ltd., formerly known as Anbo Corporation, was approved as a key construction project duringthe "Seventh Five-Year Plan" in China. It was established in 1984 and ofcially registered as Ancai Hi-Tech in 1998, with itscore business focusing on glass encapsulation. In 1999, Ancai Hi-Tech was listed on the Shanghai Stock Exchange.Since its establishment, the Company has been dedicated to the research, development, and manufacturing of high-endglass. Its business covers various sectors, including photovoltaics, photothermal, natural gas, pharmaceutical glass, andintelligent manufacturing. Through our efforts, we have achieved signicant milestones, including expanding our presencefrom a single location to multiple sites, transitioning from homogeneous competition to a high-end market position, andextending our business from product-oriented operation to an integrated industry chain approach.
ESG Management
The Company carries out material management and analysis of ESG topics, identifies core topics of concern tostakeholders, and provides responses. In 2024, the Company conducted identification and assessment through aquestionnaire survey, identifying a total of 21 material topics. Analysis was conducted based on "impact importance" and"nancial importance," and a material topics matrix was created, providing a visual and effective decision-making guidefor the development and implementation of ESG strategies.
Analysis of Material Topics
Corporate Culture
Name of the CompanyStock exchangeHenan Ancai Hi-Tech Co., Ltd.
Photovoltaicglass,photothermalglass, natural gas,pharmaceuticalglass, quartztubes, intelligentmanufacturing,etc.
Photovoltaic Glass
Ultra-clear Float Glass, Photothermal Glass
Medium Borosilicate Glass
Quartz Tube Products
Main productsand business
Shanghai Stock Exchange
(Stock Code: 600207)Year of foundation
1998
Anyang City, HenanProvinceHeadquarters
Anyang City, Jiaozuo City, Xuchang City,Puyang City, Henan Province, etc.
Main Operating Locations
CorporateMission
CorporateVision
CorporateSpiritCoreValues
Challenging the world'sadvanced level andcontributing to thecivilization of humansociety
Three principles: Not onlyrespecting superiors, notonly learning from externalsources, and not onlyreading books.Three Focuses and ThreeNon-Focuses: Focusing onthe subjective rather thanthe objective, focusing oninternal factors rather thanexternal factors, focusing ononeself rather than others.
Scaling the heights oftechnological innovationand building a high-endglass manufacturing base
Ten core values: Seekingtruth from facts, unityand progress, tenaciousstruggle, pioneeringinnovation, consistencybetween words andactions, openness andtransparency, hard workand entrepreneurship,courtesy and humility,seless dedication, andstriving for national glory.
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairman
of the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Ancai Hi-Tech places high importance on communication with stakeholders and maintains an open and transparentcommunication philosophy. The Company has established efcient and regular communication mechanisms, continuouslyenriching and expanding communication channels. This allows Ancai Hi-Tech to promptly understand the expectationsand demands of various stakeholders and strive to translate them into actions. The Company works closely withstakeholders, fostering collaboration and promoting synergistic development to achieve mutual benefits and win-winoutcomes.
Process of identifying material topics:
Stakeholder Communication
Material Topics Matrix of Ancai Hi-Tech
Benchmark Analysis
Stakeholder Survey
Analysis and Discussion
by the Company's
Management
Formation of MaterialTopics Matrix
Importance Evaluation
Impact importance
Financial importance
High
High
Low
Note: The topics of science and technology ethics, ecosystem and biodiversity conservation have little relevance to the Company's business.
Energy utilizationCircular economyResponse to climate changeProduct and service safety and quality
EmployeeEnvironmental compliance management
Supply chain securityInnovation-driven DevelopmentEqual treatment of SMEsScience and technology ethicsEcosystem and biodiversity conservation
Rural revitalizationSocial contributionPollutant emission
Waste disposalWater utilizationData security and customer privacy protection
Due diligenceAnti-commercial bribery and anti-corruption
Anti-unfair competitionStakeholder Communication
●Requirements from capital markets, rating agencies, anddomestic and international standards
●Requirements from Macroeconomic policies, industrystandards, and regulatory
●Identify topics based on best practices of peers and theCompany's business and strengths
●Topics of both nancial importance and impact importance
●Topics of nancial importance but not impact importance
●Topics of impact importance but not nancial importance
●Topics of neither nancial importance nor impact importance
●Distribute survey questionnaires
●Interviews
●Financial impact analysis
●Distribute survey questionnaires
●Understand the topics of concern to stakeholders
●Interviews
●Financial importance assessment
●Impact importance assessment
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Corporate Governance
Ancai Hi-Tech focuses on building a management structurewith clear responsibilities and well-dened division of labor. Bystrengthening departmental collaboration and smooth processconnections, an efcient and intensive operating mechanism isformed. Based on this foundation, the Company continuouslyoptimizes its business development and management models,enhances the level of standardized operations, and establishesa solid foundation for sustainable development.
The Company is committed to building a scientific and efficient governance system. In accordance with laws andregulations such as theCompany Lawand theSecurities Law, the Company formulates itsArticles of Association,scientically plans layouts, and establishes a reasonable and clear governance structure. With sound decision-makingcapabilities, the Company achieves coordinated operations among various departments.
Corporate Governance Framework
Structure Chart of Ancai Hi-Tech
Henan Ancai Hi-Tech Co., Ltd.
Strategic Decision-making Committee
Audit CommitteeRemuneration andAppraisal Committee
Risk ManagementCommitteeNomination Committee
Board of Directors
General Meetingof Shareholders
OperationManagement
During the reporting period, the Company held
General Meetingsof Shareholders
the Company held
Board of Directors'meetings
we held
Board of Supervisors'meetings
General Meeting ofShareholders
Board ofSupervisors
Board of
Directors
The General Meeting of Shareholders is the highest decision-making body of the Company,responsible for making decisions on the Company's operating policies, investment plans,and reviewing and approving reports from the Board of Directors and Board of Supervisors.During the reporting period, the Company held 2 General Meetings of Shareholders.
The Board of Supervisors is primarily responsible for reviewing the Company's regularreports, examining the Company's financial statements, and overseeing the conductof directors and senior management in their duties. The Board of Supervisors consistsof 3 supervisors, with 1 serving as the chairman of the Board of Supervisors. During thereporting period, we held 6 Board of Supervisors' meetings.
The Board of Directors is responsible for implementing the resolutions of the GeneralMeeting of Shareholders, formulating the Company's basic systems, and deciding onthe Company's operating plans. The Board of Directors consists of 7 directors, including1 chairman of the Board, and 3 independent directors. The Board of Directors hasestablished committees, including the Audit Committee, Strategic Decision-makingCommittee, Nomination Committee, Remuneration and Appraisal Committee, and RiskManagement Committee. Each committee carries out its responsibilities as outlined intheArticles of Associationand authorized by the Board of Directors. During the reportingperiod, the Company held 9 Board of Directors' meetings.
Secretary of theBoard of Directors
Board ofSupervisors
Environmental, Social and Governance Report 2024
About ThisReport
Address by Chairmanof the Board
Key ESGPerformance DataHonors and
Awards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Internal Risk Control
The Company has established a risk management system, which consists of the Board of Directors, the Risk ManagementCommittee, the Risk Management Department, various functional departments, and subsidiaries. In accordance with theprovisions of theCompany Lawand theBasic Norms of Enterprise Internal Control, the Company has formulated theRiskManagement Measures,Internal Control Management Measures,Internal Control Evaluation Management Measures, andAudit Management Measures, among others. Based on strategic and operational objectives, the Company determinesrisk management strategies, covering key aspects such as risk identification, assessment, response and monitoring.The implementation is carried out in processes including production, procurement, sales, financial activities, assetmanagement and personnel management. The implementation is evaluated, supervised, improved and rened to ensurethe Company operates in a standard and sound manner.
In 2024, the Company conducted an evaluation of the reasonableness of internal control design and the effectiveness ofinternal processes. An internal control evaluation report for 2024 was issued, along with an internal control audit reportby the auditing rm. The main business areas and matters included in the Company's evaluation scope are as follows:
internal environment (including organizational structure, development strategy, human resources, social responsibility,and corporate culture), risk assessment, information communication, internal supervision, nancial activities (includingfundraising, investments, and fund operations), procurement, asset management (including inventory, equipment, andbuildings), sales operations, research and development, project management, guarantee business, nancial reporting,comprehensive budgeting, contract management, information systems, among others. In 2024, the Company's internalcontrol system was effectively implemented, capable of meeting the requirements of company management and theneeds of company development, and achieving the goals of internal control.
In accordance with regulations such as the Guidelines for Investor Relations Management of Listed Companies and the
Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Company has formulated theInvestor RelationsManagement Measures of Ancai Hi-Tech to strengthen communication and exchange with investors.
Ancai Hi-Tech has established an information disclosure system and an internal control system. By standardizinginformation disclosure, the Company ensures compliance and transparency in its operations. By strengthening risk controlmanagement, it safeguards the Company's sustained and stable operations.
The Company strictly complies with the relevant laws and regulations regarding information disclosure. It disclosesregular reports, interim announcements, and other significant information to the public through the Shanghai StockExchange's website and the Shanghai Securities News. The Company ensures that the disclosed information is true,accurate, complete, timely, and fair, thereby safeguarding the rights of investors to be informed and make decisions.The Company has been honored by the China Association for Public Companies as an "Outstanding Practice Case of theBoard Ofce of Listed Companies in 2024".
Investor Relations Management
Compliant Operations
FieldMain Laws and Regulations
Business EthicsCompliance operations and integrity are guarantees for the steady development of the Company. Ancai Hi-Tech adheresto the principles of integrity, fairness, and transparency, shaping a positive corporate reputation. The Company operatesin strict compliance with laws and regulations, respecting the rights of partners and safeguarding customer privacy andbusiness secrets. The Company rmly opposes unfair competition, actively promotes fair competition, and collaborateswith all parties to build a healthy and orderly market ecosystem to support the sustainable development of the Company.The Company has established a closed-loop governance system that integrates institutions, supervision, reporting, andpublicity to regulate ethical conduct and enhance the awareness of integrity and self-discipline among leaders andemployees.
Institutional Development
Supervision and Management
Complaints Management
Learning and Promotion
Measures for Supervision, Inspection, and Accountability of the Main Responsibility and SupervisoryResponsibility for Party Conduct and Clean Governance,Management Measures for the Integrity Records ofLeading Cadres, andManagement Rules for Disciplinary Inspection and Supervision Handling of Letters andVisits and Whistleblowing.Accepting supervision and inspections from government authorities such as the Provincial Department ofFinance and the Audit Department;Strengthening internal control management, continuously promoting the building of the digital supply chainsystem, establishing "three lines of defense" for business supervision, functional supervision, and specializedsupervision, continuously consolidating the supervision effectiveness of the digital supply chain systemin bulk raw materials and nished goods storage and transportation management. Adopting informationautomation control processes (such as ERP systems) to reduce human interference.Establishing "four forms of decadence" reporting platform, hotline, email, mailbox, and other channels forcomplaints or reports, strictly maintaining the condentiality of reporters' personal information;Promptly investigating upon receiving complaints, implementing accountability, proposing rectificationmeasures, and forming a closed-loop management.Conducting anti-corruption culture building and training invarious forms, launching the "Integrity Ancai" Official WeChatAccount, producing "Integrity Talks" short-form videos to createan ethical and upright working environment and atmosphere;During the reporting period, a total of 159 people includingleaders and personnel in key positions signed the integritycommitment letter. There were no incidents of commercialbribery or violations related to corruption.
The communication methods mainly include: Setting up a dedicated investorhotline for telephone communication, answering investors' questions on theSSE E-interaction platform, holding regular earnings presentation and irregularinteractions with securities rms and other institutions, inviting small and mediumshareholders to attend the General Meeting of Shareholders, and occasionallypublishing operational updates through the Company's Ofcial WeChat Account.
Listing standards
Company Law,Securities Law, andRules Governing the Listing of Stocks on ShanghaiStock ExchangeProduct services andliability
Product Quality LawIntellectual propertyprotection
Patent Law Trademark LawEnvironmentalprotection
Environmental Protection Law,Water Pollution Prevention and Control Law,
Prevention and Control of Atmospheric Pollution Law, andPrevention and Control of
Environmental Pollution by Solid Waste LawEmploymentLabor LawandLabor Contract LawOccupational health &
safety
Prevention and Control of Occupational Disease LawandWork Safety Law
Environmental, Social and Governance Report 2024
About ThisReport
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Case
"Celebrating the Birthday of Our Motherland, Showcasing Youthful Charm"Theme Speech Competition
In September 2024, to celebrate the 75
th
anniversary of the founding of the People's Republic of China, AncaiHi-Tech organized a theme speech competition titled "Celebrating the Birthday of Our Motherland, ShowcasingYouthful Charm". The competition aimed to showcase the spirit and dedication of Ancai employees in their roles, aswell as to enhance team cohesion.
Speech by the Participants in the Competition
Party Building Leadership
Ancai Hi-Tech deeply understands the ideology of Xi Jinping Thought on Socialism with Chinese Characteristics for a NewEra. The Company implements theWork Regulations for the Primary-level Organizations of State-owned Enterprises ofthe Communist Party of China (Trial)and continuously strengthens the primary responsibility of Party organizations atall levels in Party governance and discipline enforcement. It practices "value-based Party building" and comprehensivelyimproves the overall level of Party building work.Based on theConstitution of the Communist Party of Chinaand theRegulations on the Implementation of the MainResponsibility of Party Committees (Party Leadership Groups) for Comprehensive and Strict Governance the Party,the Company has established theParty Building Work Meeting System and the Party Building Assessment Measures.Following the principle of "focusing on work to promote Party building and promoting development through effectiveParty building", the Company promotes the deep integration of Party building work and production and operation. Itensures that Party building work and production targets are aligned, processes are integrated, and implementation issynchronized. Efforts are made to create a closed-loop system of Party building empowerment, aiming to guide andensure high-quality development of the enterprise through high-quality Party building.In 2024, the Party Committee of Ancai Hi-Tech actively carried out relevant work under the theme of "strengtheningParty building, establishing a foundation, and forging new achievements". Efforts were made to promote organizationalinnovation and successfully completed the acceptance of the rst batch of "Five-Star" Party branch creations by higher-level Party committees. Thematic education campaign was conducted with concrete measures, aiming to guide Partymembers in following Party discipline, establishing rules, promoting positive atmosphere, and enhancing immunityagainst misconduct. Efforts were made to cultivate industry "pioneers". Three comrades were honored with titles such as"2024 National Model Worker in the Mechanical, Metallurgical, and Building Materials Industry", "Labor Model of HenanProvince", and "March 8
thRed Flag Bearer of Jiaozuo City". They actively demonstrated the exemplary and leading role ofCommunist Party members in frontline production.
CaseCollaboration in Party Building for Green Development
In April 2024, the 4
th
Party branch of Ancai Hi-Tech and the 1
stParty branch of Anyang City Ecological EnvironmentMonitoring and Safety Center jointly organized a themed Party Day event titled "Building a Strong City, Taking theLead, and Pioneering New Achievements".
Group Photo of the Party Day Event
Environmental, Social and Governance Report 2024
About ThisReport
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction to
Ancai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Innovation-driven Development
Innovation is the inexhaustible driving force for enterprise development. "Integration of education, production, andresearch" and "treating digestion and absorption equal to research, and treating innovation equal to invention" areimportant components of the Company's culture. With the support of systems and research platforms, the Company hasestablished a four-pillar system consisting of strategic planning, organizational structure, resource allocation, and resultstransformation. This has built a complete closed loop for trend forecasting, technological breakthroughs, and industrialtransformation, leading to a series of research and development achievements. In 2024, the Company's total researchand development investment amounted to RMB 123 million.The Company implements a strategy of promoting enterprise development through science and technology. It hasformulated regulations such as theManagement Measures for Research and Development,Management System forResearch and Development Project Funds,Management Measures for the Introduction of Outstanding Talent, andOrganization, Implementation and Incentive Reward System for the Transformation of Scientific and TechnologicalAchievements. These regulations standardize research and development management and stimulate innovative vitality.The Company attaches great importance to the establishment of research and development platforms and has a nationalenterprise technology center, a post-doctoral workstation, and has invested in the establishment of Ancai Glass ResearchInstitute to strengthen independent research and development. In addition, the Company focuses on integrating externalresources and continuously strengthens cooperation with universities and research institutes. It creates a multi-level andopen research and development platform matrix, providing strong support for technological breakthroughs and industrialupgrading.The Company deepens the management of technological innovation projects, dividing them into three categories basedon their importance and innovativeness:
Intellectual property protection serves as a protective barrier for enterprise innovation and development. The Companyhas formulated thePatent Management Measuresin accordance with thePatent Lawand theAnti-Unfair CompetitionLawto regulate the processes of patent application, trademark registration, and protection of trade secrets. TheCompany has established an intellectual property right protection system based on the principles of "creation, protection,operation, and prevention". It clearly denes the responsibilities and collaboration mechanisms of R&D, manufacturing,legal affairs, marketing, and other positions to ensure that the Company realizes maximum intellectual property valueand risk control.
R&D innovation is a vital driver for the Company's development. Since its establishment, the Company has alwaysfocused on the research and development of functional glass and high-end glass. It continuously promotes technologicalinnovation and conducts ongoing research and exploration in various product elds such as colored display glass, solarglass, medium borosilicate pharmaceutical glass, high-end energy-saving glass for buildings, LCD glass, and ultra-thin glass for electronic information displays. The Company has applied for more than 470 patents in total. During thereporting period, the Company led 43 patent applications and obtained 44 authorized patents, including 3 inventionpatents. The Company currently holds a total of 191 valid authorized patents, including 26 invention patents.
The Company provides rewards for employees' achievements in scientic and technological innovation, technologicalresearch and development, and technological breakthroughs. Each year, the Company conducts evaluations for the"Science and Technology Innovation Award", "Technological Innovation Award", and "Technical Paper Award". Additionally,the Company occasionally establishes the "Small Change and Innovation Award" to inspire employees' innovative.
Technology Research and Development System
Intellectual Property Protection
R&D Innovation Achievements
During the reporting period, the Company led
patent applications
including
invention patents
The Company currently holds a total of
valid authorized patents
Projects involving original innovation, integrated innovation, and re-innovation through introduction, digestion, and absorption. These projectsinvolve high technological difculty and require signicant development andinnovation (such as new materials, new processes, new equipment, and newtechnologies). The overall technological level is expected to reach above someinternational leading standards.
Projects that involve independent innovation built upon the foundation ofintroduction, digestion, and absorption. The overall technological level isexpected to reach the advanced domestic standards.
Improvement and innovation projects. These projects are of great promotionvalue within the Company, involve some level of innovation as well astechnological difculty, and the overall technological level is expected to reachthe leading position within the Company.
Category A
Category B
Category C
Innovation achievements:
Ancai Photovoltaic New Materials, Jiaozuo Ancai, Xuchang Ancai, Ancai PhotothermalTechnology, and Xinhe Industry have been recognized as "National High-techEnterprise" and "Specialized, Rened, Differential, and Innovative SMEs". The Companywas recognized as a high-tech enterprise and a specialized, rened, differential, andinnovative enterprise in photovoltaic, photothermal, and pharmaceutical glass sectors.Ancai Photovoltaic New Materials, Xuchang Ancai, and Ancai Photothermal Technologyhave been recognized as "Intelligent Factories" in Henan Province.
Jiaozuo Ancai was awarded the "Fourth Batch of Intelligent Photovoltaic PilotDemonstration Projects" by the Ministry of Industry and Information Technology.Xuchang Ancai was honored as the "2024 Single Champion Enterprise of ManufacturingIndustry in Henan Province" and the "Leading Enterprise in Manufacturing Industry".
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Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Case
Case
Innovative Breakthrough in Photothermal Glass Technology
Glass Antifungal Optimization Project
In 2024, Ancai Photothermal Technology intensied its efforts in exploring core of photothermal glass technologies,resulting in a significant improvement in production efficiency. Focusing on the key technical indicator oftransmittance in photothermal glass, the Company strengthened its innovation efforts. Through persistent efforts,the formulation of photothermal glass raw materials was further optimized, and process control was greatlyenhanced. As a result, the product's full-spectrum transmittance and visible light transmittance surpassed those ofcompetitors in the industry.
Technological breakthroughs in photothermal glass products have contributed to the expansion of the market. In 2024,Ancai Photothermal Technology established good cooperative relationships with the China Solar Thermal Alliance andseveral leading downstream enterprises. It also reached supply agreements with various solar thermal power stationconstruction companies. As a result, the brand's effect became significant. Photothermal glass orders account forapproximately 50% of the domestic market share.
Precision Operation of Intelligent Robotic Arm
In response to "alkali spotting" (sodium ion precipitation) during the storage process of ultra-clear glass products,Ancai Photothermal Technology conducted technological research and enhancement. It optimized the formulationof raw materials, achieving improved antifungal effects and product cleanliness for ultra-clear glass products.Additionally, the project effectively reduced production costs, resulting in annual cost savings of approximately RMB700,000.
Breakthrough in online dynamic cutting accuracy for photothermal glass. The online dynamiccutting accuracy of 3mm thin glass reached the same level as ofine static cutting accuracy,enabling the direct collection of products online and overcoming a technical challenge in theindustry.Achieving the record for the shortest material changeover time. The technical teamcarefully prepared and optimized the process. By switching from ultra-clear oat glass tophotothermal glass material, the material changeover time was reduced by 35% comparedwith the shortest time in history.Achieving a record-high production yield of high-quality products. Through theimplementation of lean management throughout the entire production process, the yield ofhigh-quality 3mm photothermal glass increased by 15%, leading to a signicant improvementin overall efciency.
The Company actively promotes digital transformation by planning a framework model of "Cloud-based HeadquartersPlatform + Multiple Factory Edge Platforms + Multiple Sass-based applications". This model covers six modules: productionmanagement, safety management, cost management, financial management, sales management, and equipmentmanagement. It spans across four factory areas and establishes a collaborative manufacturing management platform.This enables real-time collection of production and operational data and enhances the level of precision management.
Digital Transformation
Ancai Hi-Tech Supply Chain 5+N System
Photovoltaic NewMaterials Factory System
Production
Management
Financial
managementSafety
Management
Sales
ManagementCost
Management
Equipment
Management
Xuchang Ancai Factory
SystemPhotothermal Technology
Factory System
Jiaozuo Ancai Factory
System
Cloud-basedHeadquarters Platform
Multiple FactoryEdge Platforms
Multiple Sass-based
Applications
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CaseXuchang Ancai Intelligent Factory
Based on the new generation of information technologies such as Industrial Internet, cloud computing, bigdata, artificial intelligence, Internet of Things, and blockchain, the Company has built an industrial metaverseplatform. The digital twin of the kiln serves as the core, constructing three major applications: kiln metaverse,comprehensive production control, and kiln control assistant decision-making. By integrating information technologyand manufacturing technology, the production process is made intelligent, digitalized, and exible, enabling dataanalysis to improve processes, quality, and lean production. This ultimately leads to the creation of an intelligentbenchmark factory in the photovoltaic glass industry and an industrial Internet platform for the glass industry.
Control Room of the Metaverse Intelligent Factory
CaseDigital Supply Chain Management System
The Company has established amechanism to prevent and controlsupply chain fraud risks by developinga digital supply chain monitoring andmanagement system. The systemfocuses on procurement logistics andsales logistics, integrating businessdata from various stages, includingprocurement, sales, gate management,measurement, and warehousing. Itutilizes automation control technology,network technology, video technology,computer technology, and databasetechnologies. It combines multiple anti-fraud measures to remotely monitormeasurement management andlogistics operations, thus creating aclosed-loop logistics information system.
Digital Supply Chain System
Product ResponsibilityProducts are the Company's business card, and servicesare the bridge connecting customers. The Company hasestablished a comprehensive research and development,production, and sales system. It precisely and effectivelycontrols the quality control processes. With high-qualityproducts and sincere services, the Company has earnedthe trust of a wide range of customers. Customer privacyprotection is a reflection of the Company's integrity. TheCompany pays attention to network and information securitymanagement to ensure the security of customer information.The Company has formulated theAnti-Monopoly ControlProcedures in accordance with theAnti-Monopoly Lawandstrictly implemented the procedures. This is to prevent andstop monopolistic behaviors, and to protect fair competitionin the market.
Product safety and quality are the lifeblood of the Company. Each business division and subsidiary of Ancai Hi-Tech hasestablished a quality management organization and quality management team responsible for quality management andsupervision. Adhering to the quality concept that "product quality stems from production ", the Company has establisheda holistic control system for raw materials, product research and development, production, inspection, shipping, andquality feedback. Standardized management measures are implemented in process technology, product technology,product quality and safety, quality inspection, warehousing, and transportation to ensure the provision of high-qualityproducts for customers. By the end of the reporting period, the Company and its subsidiaries have all passed the GB/T19001-2016/ISO 9001:2015 quality management system certication.
Product Safety and Quality
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Quality Management System Certicate
Emphasizing source control, the Company has established systems such asRaw Material Standards,Raw MaterialAnalysis Methods, andGuidelines for Raw Material Testing. It continually optimizes and improves laboratory analysismethods and inspection processes during actual operations. This helps to enhance inspection efficiency and timelyinformation transmission, ensuring the control of raw material quality and safeguarding the quality of products.
Jiaozuo Ancai was awarded the "First Prize of Quality Management Team" in the Chinese electronic information industry.Ancai Hi-Tech was also honored with the title of "Advanced Unit in Quality Management Achievement Competition" inAnyang City.
Measures for Raw Material Quality Control
Customer service is the last mile of the Company's quality management. The Company adheres to customer-orientedprinciples, formulating regulations such as theUser Service Management Regulation,Quality Information FeedbackManagement System, andCustomer Satisfaction Testing Procedures. Continuous improvement is made in the customerservice system to enhance customer satisfaction.
Customer Service
Within 24 hours, we complete the traceability, confirmation of products in the samebatch of inventory and products in transit, and conrmation of online production status.
Within 7 days, we identify the cause and formulatecorrective and preventative measures.We complete improvement measures and trackthe effectiveness of customer use. The trackingtime for effectiveness of use is dependent oncustomer production schedules. Generally, it iswithin 30 days.
Customer service
Industry communication activities
Customer satisfaction survey
Actively conduct customer visits to introduce products and maintain relationships, gaining adeep understanding of customer needs.During the reporting period, there were more than 500 times of comunitation withcustomers, and the Company participated in 4 ESG training sessions provided by customers.
The Company participated in 3 technical seminars and 4 industry exhibitions to understandindustry trends and showcase the Company's strength and brand to customers and themarket.
We regularly conduct customer satisfaction surveys, with questions set in variousdimensions such as market marketing services, product quality and services, and overallsituation. We analyze the survey results to understand customer concerns and improveservice quality. During the reporting period, the questionnaire response rate was 100%, andcustomer satisfaction exceeded 98%.Handling procedures of product quality feedback:
Product Quality and Safety Control MeasuresProduct Quality Improvement Measures
●Benchmark the quality level of domestic andinternational peer companies, understand andmaster the current quality status of mainstreamproducts in the market;
●Analyze glass defect data to identify andimprove relatively weak areas;
●Upgrade and transform equipment according tomarket conditions and customer requirements;
●Learn and apply quality management tools,continuously optimize quality managementmethods, and improve product quality andservice quality;
●Closely monitor the usage of products bycustomers and continually improve the qualitycontrol level in the manufacturing process basedon customer feedback.
●Standardize the inspection of raw materialsand use qualied raw materials;
●Scientically allocate the amount of rawmaterials and ensure accurate measurement;
●Provide high-quality equipment andprofessional talent resources, ensuringboth hardware and software support. Useadvanced production and testing equipment;
●Continuously conduct professional and skillstraining for employees, enhancing theirawareness and operational prociency inquality;
●Provide timely and professional pre-sales, in-sales, and after-sales services.
a
b
c
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Company Quality Month Communication with the Monitoring
Department
The Company places great importance oncustomer experience. Over the past 17 years ofoperation in the photovoltaic glass sector, it hasestablished strong mutual trust and long-termstrategic partnerships with numerous leadingdomestic and international customers. This isattributed to the Company's high and stableproduct quality, as well as its attentive service.The "Ancai" brand has gained a good reputationin the industry. In 2024, the Company wasselected as an "the Excellent Partner" by TZE andnamed an "the Outstanding Supplier" by DMEGC.The Company actively conducts and participates in industry communication activities. Ancai Photovoltaic New Materialsis a council member of the China Architectural and Industrial Glass Association and has participated in the formulation ofnational standards such as theSolar Glass-Part 1: Ultra-clear Patterned GlassandLight Weight Thermally StrengthenedGlass. In 2024, Ancai Photovoltaic New Materials participated in 2 meetings of the China Photovoltaic IndustryAssociation.Xuchang Ancai is a council member of the Henan Energy Efciency Technology Association. In 2024, it participated inindustry and technical meetings onComprehensive Standardization Technical System for the Solar Photovoltaic Industry,
Specication for the Evaluation of Zero Carbon Factories, andGuidelines for the Evaluation of Super Energy EfciencyFactory.Ancai Photothermal Technology continues to deepen strategic cooperation with leading companies in the industry. Itfocuses on three areas: photothermal glass technology research and development, industrial development of ultra-clear oat glass, and collaborative optimization of the supply chain system. Together, they aim to create a research andproduction base for high-end glass products. In 2024, Ancai Photothermal Technology directly organized 2 technicalmeetings of the China Solar Thermal Alliance and participated in the China Shanghai International Glass IndustryTechnology Exhibition. This provided insights into industry trends, deepened communication and collaboration, and setthe direction for their own development.
The Company has established a leadership group to oversee network security and supervision. In accordance with theCybersecurity Law, the Company has formulated regulations includingNetwork Security Management Regulations,Data Backup and Hierarchical Classication Management Regulations,Data Security, Network and Information SecurityIncident Emergency PlanandInformation Asset Management System. These measures aim to strengthen networkinformation security management and protect customer privacy. During the reporting period, the Company did notexperience any data security issues or incidents of customer privacy breaches.
Industry Communication
Data Security and Customer Privacy Protection
participated in
meetings of the China Photovoltaic IndustryAssociation
directly organized
technical meetings of the China SolarThermal Alliance
Data classication management:
Log analysis management:
General data
Important data
Various information of individuals or departments, including ofce documents and email data.
Network administrators and system administrators review and analyze network data logson a daily basis. If any abnormal situations are found, they promptly inspect the system tocheck if there is any intrusion and report it;Security administrators and audit administrators regularly analyze and summarizenetwork data logs to ensure that the audit system is functioning properly;
Security administrators regularly back up network data logs.
Archive data, monitoring data, server data, etc.
Case
Information Database Problem and Information Technology EquipmentEmergency DrillDuring the drill, we simulated a scenario where there was a severe database failure. The objective was to quicklyrestore business operations by performing a switch to the primary or secondary database. We utilized databasebackups to expedite the process of rebuilding the database and restoring it to the latest state. Single-point devicesin the network topology pose a signicant security risk to enterprise networks. In the event of a single-point devicefailure, information management personnel must respond quickly and perform fault localization. This enables themto identify and resolve the issues causing network communication interruptions.
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Supply Chain Security
Based on the principles of "safety, transparency, and sustainability" in supply chain management, the Companyhas established a supply chain management system. It implements strict supplier admission mechanisms to ensurequality control from the source. The Company conducts multidimensional assessments of its partners' qualitymanagement systems, environmental responsibilities, occupational health and safety, and supply guarantee toensure that the purchased products and services comply with quality, environmental, and occupational health andsafety standards.
For qualied suppliers, the Company conducts regular audits and evaluations of their actual supply performance in termsof supply quantity, quality, service, and price. If necessary, quality control personnel and representatives from the userdepartments are organized to audit and evaluate the supplier's production control processes ofine. During these visits,they communicate on quality standard requirements and assist the supplier in continuously improving their productquality and service levels.
The Company has formulated aSupplier Code of Conductthat encompasses standards related to businessethics, human rights, health and safety, and environmental protection. We have also developed theSupplierEnvironmental Management Noticationto ensure effective implementation of quality, environmental, occupationalhealth and safety management systems, as well as the ROHS management system (based on theRestriction ofHazardous Substances Directive, a mandatory standard set by the EU to regulate the use of hazardous substancesin electrical and electronic products).The Supplier Recognition and Evaluation Management Regulationshave been formulated to conduct rigorousqualification certification for qualified suppliers in accordance with the relevant processes. Performanceevaluations, including quality, price, delivery time, and service, are conducted quarterly or irregularly to assistsuppliers in improving their product quality and service levels. Based on the evaluation results, correspondingdynamic management measures are taken to create a favorable supply environment for the suppliers.
The Company has formulated theProcurement Management MeasuresandBidding and Procurement Supervision andManagement Measuresin accordance with national laws and regulations such as theBidding Lawto regulate biddingand procurement behaviors. During the bidding and procurement process, the Company emphasizes integrity anddiscipline. We require all suppliers to sign theIntegrity Commitment,Integrity Contract, andAnti-Commercial BriberyAgreement. The Company's procurement supervision department monitors the bidding and procurement process toprevent potential corruption risks and ensure that the procurement work is conducted in an "open, fair, just, competitive,merit-based, and honest and trustworthy" manner.
Prioritized order placement;Increased supply allocation;Other feasible measures.
For suppliers evaluated as C-level in a quarter, we reduce the purchase quantity;For suppliers evaluated as C-level for two consecutive quarters, we suspend procurementand require the suppliers to analyze the reasons and develop and implement improvementmeasures. The suppliers will be re-evaluated by the relevant department and will be eligiblefor supply once they meet the qualification criteria defined in theSupplier Recognition andEvaluation Management Regulations.
Normal procurement is maintained.
For suppliers evaluated as D-level in a quarter, procurement will be suspended, and thesuppliers will be required to analyze the reasons and develop and implement improvementmeasures. The supplier will be re-evaluated by the relevant department and will be eligiblefor supply once they meet the qualification criteria defined in theSupplier Recognition andEvaluation Management Regulations.If a supplier receives a D-level evaluation for four consecutive times within a year, itsqualication as a supplier will be directly canceled.
Suppliers Management
Transparent Procurement
Equal Treatment of SMEsEvaluation
Level
Management MeasuresA
B
C
D
The Company fully respects and protects the legitimate rights and interests of suppliers and has established goodcooperative relationships with the main suppliers. The Company continuously improves its procurement-related systems,enhances the supply environment, and reasonably arranges the payment plan for procurement funds. We ensure timelypayment to suppliers as agreed and have no outstanding payments to private companies or SMEs.
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The Company's General Manager is responsible for the comprehensivedeployment of safety and environmental protection management.The Company’s headquarter has established a safety andenvironmental protection responsibility system that covers allemployees and production operations, fullling the function of safetyand environmental protection supervision and management.The Office executes relevant safety and environmental laws,regulations, and standards, participates in the Company's safetyand environmental protection management decision-making, andguides and supervises the safety and environmental protection ofvarious business divisions, subsidiaries, and departments.The Departments serve as the responsible entities for safety andenvironmental protection for each unit. The key leaders in chargeare fully responsible for the safety and environmental protection oftheir respective units. The personnel in various positions carry outspecic safety and environmental protection tasks according to theirresponsibilities.
Safety and Environmental
Protection Management
Committee
Safety and EnvironmentalProtection Supervision Ofce
Various Business Units,Subsidiaries, and
Departments
Environmental Management System
The Company implements a "One Position, DualResponsibilities" management model involving"safety + environmental protection" and hasestablished an organizational structure for safetyand environmental protection. This structureoversees the management of environmentalprotection and safety throughout the Company.It has also established a system of safety andenvironmental responsibilities that are executedby various departments to achieve the goals ofsafety and environmental management.
The Company attaches great importance to ecological conservation and pollution prevention. It actively fulfills itssocial responsibilities and carries out environmental management system certification. Both the Company and itsmajor subsidiaries have obtained certication for ISO 14001:2015 Environmental Management System. They have alsoundergone assessments and acceptance inspections by local, municipal, provincial, and national environmental protectiondepartments. Most of the subsidiaries have been rated as A-level Environmental Performance Enterprises, indicatingthat they have achieved the highest level of environmental governance in the industry, these companies can continueproduction or implement limited production during periods of heavy pollution emergencies, and they take autonomousmeasures to reduce emissions.
The Company strictly adheres to theEnvironmental Protection Law and follows the principles of legal compliance, all-employee participation, whole-process control, and risk prevention. It has formulated environmental protection systemmaterials, which cover policy requirements, environmental objectives, organizational responsibilities, environmentalperformance monitoring and management, employee training and assessment, as well as emergency plan andprevention, with an emphasis on comprehensiveness and compliance. During the reporting period, the Company did notexperience any signicant environmental incidents or environmental penalties.
Organizational Structure for Environmental Management
Environmental Management System Certication
Environmental Management System
Organizational Structure for Safety and Environmental Protection Responsibility of Ancai Hi-Tech
Environmental Management System Certicate
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Ancai High-Tech
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Environmental Management
and Sustainability
Employee Care and
Social Welfare
Appendices
The Company pays attention to the environmental impacts of projects throughout their lifecycle. From design toimplementation, it employs scientic environmental impact assessments and comprehensive process control to effectivelybalance production and environmental requirements. The goal is to minimize the environmental impacts of projectoperations to the greatest extent possible.
The Company adheres to the concept of green and low-carbon development. Through measures such as improvingmanagement systems, optimizing production processes, and constructing green factories, it applies lower-carbonand more energy-efcient models and technologies throughout its production and operation processes. The Companyimplements energy-saving and emission reduction measures to enhance energy efciency.
The Company promotes standardized environmental managementand conducts multi-level environmental training to ensure thatall employees have a deep understanding of and implement theconcept of green development. This strengthens the Company'sability to fulll its social responsibility in environmental protection.
The Company responds to national energy-saving and carbon reduction policies and adheres to the energy policy of"complying with laws, innovation, energy-saving, emission reduction, clean production, and green development". Itcontinuously improves its energy management system and has establishedEnergy Management Regulations, Manuals,and Procedure Documentsas well asProvisional Measures for Energy Conservation. Our workplaces are monitored andcontrolled for energy usage.We set energy efficiency targets and break down annual energy consumption targets for production workshopsaccording to energy management needs and historical energy consumption. An assessment mechanism and reward-punishment system are established to ensure the implementation of energy-saving measures in all production units.Subsidiaries of the Company, such as Photovoltaic New Materials and Xuchang Ancai, have obtained certications forthe energy management system GB/T 23331-2020/ISO 50001:2018. Xuchang Ancai has also achieved certication for theintelligent green and low-carbon management system according to the technical specications of the CTS ZY 007-2024digitalized green low-carbon evaluation and management system. The product energy consumption has reached thenational benchmark (GB 21340-2019, the National Standard of the People's Republic of China).
The Company implements a series of innovative projects and technological transformations to improve processes andupgrade production equipment, reducing resource consumption. Targeting production processes and energy consumptionstructure, energy-saving technology upgrades are carried out in multiple key areas. At the same time, resource recyclingis promoted, energy efciency management is strengthened, energy costs are signicantly reduced, and resource wasteis minimized.
Note: Direct energy consumption comes from natural gas; indirect energy consumption comes from purchased electricity; total energy consumptionconsists of the sum of direct energy, indirect energy, and clean energy consumption; clean energy usage includes waste heat power generation,rooftop photovoltaic plants, and source-grid-load-storage.
The Company adheres to the principle of "prevention rst, combining prevention with emergency plan". It has establishedan environmental emergency management system based on the characteristics of its business, and has formulated anEmergency Plan for Sudden Environmental Incidentsand implemented the responsibility of environmental protection.
Environment Impact Assessment
Development of Environmental Awareness
Energy Management
Energy Conservation and Consumption Reduction
Environmental Emergency Management
CaseEnvironmental Emergency Resource Management and Drills
In 2024, Ancai Photothermal Technology conducteda comprehensive survey of environmentalemergency resources and evaluated the buildingof emergency plan team based on the technicalspecifications outlined in theGuidelines forEnvironmental Emergency Resource Surveyby theMinistry of Ecology and Environment. They alsoimproved the report on environmental emergencyresource survey. For high-risk substances, AncaiPhotothermal Technology carried out specializedenvironmental emergency capability building.It systematically assessed the risks of suddenenvironmental incidents that could causesecondary environmental pollution, such as leaks,res, and explosions, and organized a specializedemergency drill for ammonia leakage to validatethe effectiveness of its emergency plan throughpractical exercises. This further enhanced its abilityto prevent and respond to environmental risks.
Environmental Emergency Drill
Energy Utilization
Major energy usage and energy-saving measures:
Energy CategoryUsage ProcessEnergy-Saving Measures
Natural
gas
Electricity
Glass kiln
Roof of the plant,switching station,low-voltagesubstations, MCCrooms, on-sitepower cabinets,and electricalequipment
New insulation and energy-saving technologies such as gradientcooling process, fiber spraying technology, composite shadingtechnology, and thermal bridge prevention constructiontechnology are adopted for kilns. Infrared high-radiation energy-saving coatings are used for glass kilns. These measures achievegas savings and excellent insulation effects.The high-temperature flue gas waste heat from the glass kilnis fully recycled for waste heat power generation. On the roofsof the plant buildings, distributed photovoltaic power stationsare constructed to generate electricity using solar energy. Theelectricity generated is used for glass production, achievingenergy-saving and consumption reduction effects. In 2024, 99.89million kWh of electricity was generated through waste heatpower generation. Subsidiaries constructed photovoltaic powerstations on the roofs of their plants and implemented source-grid-load-storage stations, generating 36.48 million kWh ofphotovoltaic power in 2024.
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Appendices
Case
CaseReducing Energy Consumption of Dryer Adsorption Tower Regeneration
Ancai Hi-Tech Participates in the Second China International Supply Chain Expo
The Pharmaceutical Glass Project Departmentoptimized the operation mode of the compressedair dryer by upgrading from a scheduledswitching mode to a dew point energy-savingmode. The regeneration interval was extendedwhile ensuring that the dew point of thecompressed air meets the process standards. Byimplementing these optimizations, the averagedaily number of regenerations of the equipmentwas reduced, resulting in an annual electricitysaving of over 20,000 kWh.
On November 26, 2024, Ancai Hi-Tech, as one of the representatives of clean energy supply chain enterprises,participated in the second China International Supply Chain Expo (CISCE) in Beijing as part of the Henan delegation.More than 600 key enterprises from global industrial and supply chains exhibited at the event. A total of 13enterprises from Henan Province participated in the CISCE, with Ancai Hi-Tech representing the clean energy supplychain sector.
Dew Point Energy-saving Mode of the Dryer
Booth of Ancai Hi-Tech
The Company integrates the promotion and application of clean energy, including natural gas, solar power generation,and industrial waste heat power generation, into its business practices. It optimizes the energy structure andsupports low-carbon sustainable development. Ancai Energy, a subsidiary, is primarily engaged in natural gas pipelinetransportation, delivering natural gas to industrial enterprises and urban gas companies along the pipeline. Subsidiariesand glass kilns use clean energy, such as natural gas, as fuel. Solar power projects are built on the roofs of subsidiariesand factories, harnessing solar energy as clean energy for electricity generation. The electricity generated is used forthe production, optimizing the energy structure, reducing operational costs, and effectively reducing greenhouse gasemissions. Subsidiaries fully recover the high-temperature ue gas waste heat from glass kilns and utilize it for wasteheat power generation. This not only recovers heat but also generates electricity for use in glass production, reducingenterprise costs and achieving signicant economic, environmental, and social benets.
Clean Energy
Reducing energy consumption of the dryer adsorption tower regeneration: Optimizing thedrying and regeneration modes, reducing the regeneration frequency by 5.89 times per day,resulting in a daily electricity saving of 566 kWh.
Recovery of purified water in the oxygen production system: Collecting and reusing thepuried water discharged from the nitrogen discharge well, saving 36 tons of puried waterper day.
Recovery of overow material cooling water: Recycling and reusing the cooling water, saving30 tons of tap water per day, achieving zero direct discharge.
Delaying the start of the refrigeration machine: Installing air conditioners for local cooling,and extending the operating time of the refrigerating machine, which results in a dailyelectricity saving of 1,880 kWh.Shutting down fans: Based on seasonal and process requirements, shutting down certain airconditioning fans, resulting in a daily electricity saving of 260 kWh.Optimizing the cleaning machine program, reducing the frequency of the rapid cooling fanin the tempering furnace, and shutting off the heating of the curing furnace during theprocessing of perforated steel plates in the screen printing process, which results in a dailyelectricity saving of 8,000 kWh.
Display of Some Projects on Energy Conservation and Consumption Reduction of Production Equipment
Ancai Photovoltaic New Materials, Ancai Photothermal Technology, Jiaozuo Ancai, Xuchang Ancai,Pharmaceutical Glass Project Department, and Anyang Silicon-Based New Materials have a combinedrooftop solar power station capacity of over 30 MW, capable of generating approximately 35 million kWh ofelectricity annually.Source-grid-load-storage is a new power operation mode that integrates "power generation, power grid, load,and energy storage" in a holistic planning approach. Subsidiaries are constructing source-grid-load-storagephotovoltaic power generation and energy storage projects. The generated electricity is used for internalproduction needs without causing impacts on the power grid, while effectively reducing production costs.Ancai Photovoltaic New Materials, Jiaozuo Ancai, and Xuchang Ancai have completed and are constructingsource-grid-load-storage photovoltaic power generation projects with a capacity of 6 MW, capable ofgenerating approximately 6.1 million kWh of electricity annually.
Rooftop Photovoltaic Power Generation ProjectEnergy Storage Facilities for the Source-grid-
load-storage Project
At the subsequent communication,Ancai Hi-Tech, as a representativeof Henan exhibitors, delivered aspeech, expressing its commitmentto closely following the pace ofhigh-quality development of the"the Belt and Road". Leveragingthe unique geographical advantageof Henan Province, Ancai Hi-Techactively engages in extensiveexternal cooperation to createintegrated vertical developmentand application scenarios for"Photovoltaic + Photothermal" andtransform the supply chain intoa "win-win chain", contributingnew strength to the clean energyindustry.
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Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
The Company implements theWater Law of the People'sRepublic of China, has established a water-saving leadershipgroup and water-saving management ofce, and establisheda water-saving target responsibility mechanism. All productionworkshops, departments, and units cooperate and collaborateto implement water-saving responsibilities and deepen theawareness of water conservation among all employees.
The Company values the recycling and efcient utilization of water resources in the production process. By optimizingprocess flows, promoting water recycling, and implementing water-saving technologies, water consumption in theproduction process is reduced. During the reporting period, the Company achieved a recycling water reuse of 92.9039million tons.
Water Conservation
Water Utilization
Water conservation and management measures:
CaseWater Conservation ActionAncai Photovoltaic New Materials conducted a self-assessment for water conservation based on theGuidelinesfor the Evaluation of Water-Saving Enterprises(GB/T7119-2006) and complied with all the basic requirements.
The installation rate of water meters is 100%, with a high accuracy rate of 2.5% orhigher;The usage rate of water-saving appliances reached 95%, resulting in an actual water-saving rate of over 12%;In 2024, the water intake per unit product was 110.2 m
/10,000 m
, a year-on-yeardecrease of 8.17%. Compared with the local standard of Henan Province,Industrial andUrban Domestic Water Quota(DB41/T385-2014), it is signicantly lower than the waterconsumption quota of 257 m
/10,000 m
for the photovoltaic glass industry;Reverse osmosis concentrate water is recycled by installing new recycling pipelines andpumps, utilizing existing facilities such as water tanks. This resulted in saving watercosts of RMB 1.3 million annually.
Targettracking
Waterconservationpropagation
Waterrecycling
Each subsidiary and plant sets water usage targets and tracks monthly waterconsumption. Water-saving plans are adjusted promptly as needed.
Irregular water conservation campaigns and educational activities are organized,promoting cost-saving and water-efcient practices among employees to enhancetheir awareness of water conservation.
A wastewater recycling system is established, utilizing an efcient sedimentationtank system. After ltration, sedimentation, and coagulation processes, clean wateris recycled, and sludge is transported off-site for disposal.Near-zero discharge systems are implemented, utilizing ultraltration and reverseosmosis equipment. After undergoing filtration and other processes, water isrecycled for reuse.
Environmental, Social and Governance Report 2024
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Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
The Company strictly controls wastewater management, builds wastewater treatment and reuse facilities, and ensurethat wastewater discharge meets the standards and resource utilization through the implementation of water recycling,quality-based treatment and wastewater recycling.
Other domestic wastewater
Wastewater Management
Main wastewater types and treatment methods:
The Company places high importance on protecting the environment, preventing pollution, and fulfilling our socialresponsibilities. Regarding waste gas management, the Company has developedPollutant Emission Standard and On-site Emergency Plan for Waste Gas Pollution Sources in accordance with the national thePrevention and Control ofAtmospheric Pollution Law,Regulations on the Management of Pollutant Discharge Permits, and industry standards.These plans cover controlling emissions at the source, process management, monitoring and supervision, and complianceassurance measures.The Company designs and constructs glass kilns to high standards, incorporating advanced technology and equipmentfor the treatment of flue gas. Each kiln is equipped with flue gas pollutant treatment systems for desulfurization,denitrication and dust removal, achieving the comprehensive management approach that integrates source reduction,process control, and end-of-pipe compliance. The pollutant emissions are superior to the national low standards, andthe main environmental indicators have been reviewed and accepted by the district, municipal, provincial, and nationalenvironmental protection departments. Ancai Photovoltaic New Materials, Ancai Photothermal Technology, Jiaozuo Ancai,Xuchang Ancai, and Ancai Neutral Boron-Silicate Pharmaceutical Glass projects have all obtained the environmentally-friendly A-level performance enterprise certication.
Ancai Photovoltaic New Materials, Jiaozuo Ancai, Xuchang Ancai, Ancai Photothermal Technology, and Ancai NeutralBoron-Silicate Pharmaceutical Glass projects adhere to the relevant provisions of theMeasures for the Disclosure ofEnvironmental Information (Trial)to enter the basic production information, pollution discharge information, constructionand operation of pollution control facilities, environmental impact assessment of construction projects, informationon other environmental protection administrative permits, emergency plans for sudden environmental incidents, self-monitoring plans for the environment, and other relevant environmental information into the relevant informationdisclosure platform. They disclose relevant environmental information and accept social supervision.
Waste Gas ManagementWaste and Pollutant Management
The main types of waste gas of the Company and their treatment methods:
The Company's waste gas emission standards, treatment measures and emission volumes:
CaseComprehensive Water Resource Recycling in the Workshop
In April 2024, Ancai Photothermal Technology initiated acomprehensive water resource recycling project in the powerworkshop. Over 160 tons of wastewater generated duringthe production process was recovered and reused afterundergoing softening treatment in the reghting water pool.Currently, the daily average discharge of wastewater from theworkshop has decreased from over 200 tons to about 60 tons,resulting in a daily water saving of approximately 140 tons.
Equipment for Comprehensive Utilization andTransformation of Water Resourcesresulting in a dailywater saving ofapproximately
tonsthe daily average discharge ofwastewater from the workshop hasdecreased from over 200 tons to about
tons
EmissionStandards
Production LinkTreatment MethodsTypes of Wastewater
Management
Standard
Type of Waste
Gases
Production LinkTreatment MethodsEmission Standard ofAir Pollutants for Glass
Industry (GB26453-2022)
Dust waste gas
Ingredient mixingprocess
High-altitude emission after bag
ltrationFlue gas from glass kiln
Generated during themelting process in the
kiln
SCR (Selective CatalyticReduction) + NID (Nitric AcidDesulfurization) + bag ltrationWaste gas from rollingand coating
Finishing workshopRTO
EmissionStandard
Key Control
Indicators
Monitoring
Methods
TreatmentMeasures
ApprovedTotal Emission
Emissions in2024
EmissionStandard ofAir Pollutantsfor GlassIndustry
(GB26453-2022)
Nitrogen oxide
Chemiluminescencemethod (Online)
Selective catalyticreduction (SCR)
715.77t/a401.18t
Sulfur dioxide
Ultravioletuorescencemethod (Online)
NID semi-drymethod
223.51t/a54.33t
Particulate
Laser forwardscattering (Online)
Membrane-coatedbag lter
40.4t/a6.85t
VOCs
FID (Flame ionization
detection) (Online)
Activated carbonadsorption + zeoliteroller + regenerativethermal oxidizer (RTO)
Integrated WastewaterDischarge Standard
(GB8978-1996)
Productionwastewater
Softened waterwastewater
Cooling water
After undergoing watertreatment processes such asltration, sedimentation, andcoagulation, water is recycled.Excess water is dischargedthrough the wastewater pipenetwork.
Puried waterwastewater
Heat recoveryboilerGrinding water
FinishingworkshopCleaningwastewater
FinishingworkshopCirculating coolingwater drainage
Heat recoveryboilers, glassmelting kilns, andcompressed airstations
After passing through aseparate water recycling systemin the plant area, 90% of thewater is reused for production,while 10% is discharged throughthe drainage system.Daily operations ofthe administrativedepartments,productiondepartments, andcanteens
After undergoing treatment inseptic tanks and grease traps,the wastewater is dischargedinto the sewage pipe network.
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Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
According to thePrevention and Control of Environmental Pollution by Solid Wastes Lawand theNational Catalogueof Hazardous Wastes, the Company has established theRegulations on Solid Waste Managementand implementedcorresponding management measures and procedures for different types of solid waste. Additionally, throughthe establishment of an Internet of Things (IoT) system, intelligent management of hazardous waste generation,transportation, storage, transfer, etc. is achieved. This system complies with national requirements for the managementof hazardous waste and avoids potential non-compliant behaviors resulting from human intervention. During thereporting period, the Company did not have any incidents involving illegal disposal of waste.
The Company prioritizes noise pollution control, ensuring that noise emissions from equipment such as cutting machinescomply with theEmission Standard for Industrial Enterprises Noise at Boundary(GB12348-2008). We implement effectivemeasures to reduce noise pollution and mitigate its impacts on the surrounding environment.The Company emphasizes the management of hazardous substances and major hazard sources involved in productionand operation processes. We have developed regulations and systems such as theRegulations on the SafetyAdministration of Dangerous Chemicals and theManagement System for Hazardous Substances and Major HazardSources. We conduct inspections and identication of major hazard sources, strictly regulates inbound and outboundmanagement, and controls the risks associated with hazardous chemicals. A chemical warehouse has been establishedto categorize and store chemicals in different areas, creating a safe and environmentally friendly production environmentto ensure the safety and health of employees.
Solid Waste Management
Noise Management
Chemical Safety
The Company implements recycling measures for certain types of waste:
Main waste types and treatment methods:
The Company adheres to the requirements of national and Henan Province's green manufacturing system, organizingproduction and operation around resource conservation, low-carbon energy, and clean production. It is committed tothe development direction of green, low-carbon, and intelligent manufacturing, combining advanced technologies andmanagement methods to continuously make breakthroughs in energy conservation, emission reduction, efcient resourceutilization, and environmental protection. Ancai Photovoltaic New Materials and Xuchang Ancai have established a digitalenergy and carbon management center, enabling functions such as energy monitoring, carbon emissions accounting, andcarbon asset management. This comprehensive data support for energy conservation and carbon reduction managementhelps the Company achieve its dual control targets for energy conservation and carbon emissions. Ancai PhotovoltaicNew Materials and Xuchang Ancai have been recognized as "Green Factories" in Henan Province, following the standardsand principles of factory intensication, harmless raw materials, clean production, waste resource utilization, and low-carbon energy.
The Company actively promotes energy conservation, emission reduction, and circular clean production in line withthe national "carbon peaking and carbon neutrality" strategy. We adheres to the concept of green development andcontributes to carbon neutrality goals by reducing carbon emissions through technological innovation and efficientresource utilization.The Company actively addresses climate change by using natural gas as a clean energy source for glass kilns. Thecumulative greenhouse gas emissions (Scope 1 + Scope 2) of Ancai Photovoltaic New Materials, Ancai PhotothermalTechnology, Jiaozuo Ancai, Xuchang Ancai, and the Pharmaceutical Glass Project Department amount to 919,400 tonsof carbon dioxide equivalent. Moreover, the Company actively builds distributed rooftop solar power stations and wasteheat power generation facilities. The electricity generated from clean energy sources is used for its own glass production,resulting in a reduction of 83,200 tons of carbon dioxide equivalent in greenhouse gas emissions. During the reportingperiod, the Company invested RMB 10.1485 million in greenhouse gas emission reduction.
Note: The greenhouse gas emissions statistics cover Ancai Photovoltaic New Materials, Ancai Photothermal Technology, Xuchang Ancai, JiaozuoAncai, and the Pharmaceutical Glass Project Department. Scope 1 emissions mainly come from natural gas and raw materials, while Scope 2emissions mainly come from purchased electricity.Green Factory Construction
Response to Climate Change
CaseCreating a Green Factory
Ancai Photovoltaic New Materials and Xuchang Ancai employ technologies such as efficient and energy-savingcombustion, low-temperature waste heat power generation, and single kiln multi-line production to reduce energyconsumption and enhance their level of greenness. They have also constructed rooftop solar power stations toreduce greenhouse gas emissions. The establishment of an online energy consumption monitoring system promotesdigital energy management. Improvements in raw material control and production processes have been madeto produce green and low-carbon products. In terms of pollution control, they adhere to the requirements of theEnvironmental Protection Lawfor "Three Simultaneities", reducing particulate matters and gas emissions, andenhancing environmental protection. They also implement the recycling and comprehensive utilization of wasteglass, creating a green development model.
Waste Heat Utilization FacilitiesSolar Photovoltaic Power Generation Facilities
CriteriaTypesProcessesTreatment Measures
Standards for PollutionControl on the Storage and
Disposal Site for General
Industrial Solid Wastes
(GB18599-2020)
Broken
glass
Cold-end
cutting
100% recycling of broken glass from the production
processDust
Ingredientmixing process
Dust collector collects dust directly, returning it as rawmaterial to the production process, achieving a 99%
recycling rate.
Types of WasteProduction LinkTreatment Measures
Scrap aluminum edges and
corners
Hollow Tempering
Workshop
Outsourced to qualiedcompanies for resaleGrinding sludgeWastewater reuse
Outsourced to qualiedcompanies for disposalDesulfurization slag
Desulfurization and
denitrication
Recycled by building material
companiesWaste refractory bricksKiln
Recycled by refractory material
manufacturersSpent activated carbonVOC waste gas treatment
Collected and periodically
disposed of by qualiedhazardous waste disposal
institutesSpent catalysts
Desulfurization anddenitricationWaste oil
Equipment service andmaintenanceWaste packaging materialsDeep processing
Waste batteriesForklift transportation
Non-hazardous waste
Hazardous waste
Types of WasteProduction LinkTreatment Measures
Scrap aluminum edges and
corners
Hollow Tempering
Workshop
Outsourced to qualiedcompanies for resaleGrinding sludgeWastewater reuse
Outsourced to qualiedcompanies for disposalDesulfurization slag
Desulfurization and
denitrication
Recycled by building material
companiesWaste refractory bricksKiln
Recycled by refractory material
manufacturersSpent activated carbonVOC waste gas treatment
Collected and periodically
disposed of by qualiedhazardous waste disposal
institutesSpent catalysts
Desulfurization anddenitricationWaste oil
Equipment service andmaintenanceWaste packaging materialsDeep processing
Waste batteriesForklift transportation
IndicatorsUnitData in 2024Scope 1Tons CO
equivalent712,678.64Scope 2Tons CO
equivalent206,679.84
IndicatorsUnitData in 2024Scope 1Tons CO
equivalent712,678.64Scope 2Tons CO
equivalent206,679.84
IndicatorsUnitData in 2024
Total amount of non-hazardous solid wasteTons148,304.25Total amount of hazardous solid wasteTons76.352
Total amount of recycled wasteTons138,517.50
Environmental, Social and Governance Report 2024
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Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Employee Rights and BenetsThe Company adheres to national laws and regulations such as theLabor Lawand theLabor Contract Law. It hasestablished systems such as the Labor Contract Management Measures,Human Resources Planning ManagementMeasures, andRecruitment Management Measuresto ensure lawful and compliant employment, protect the rights andinterests of workers, and create a fair and just employment environment. During the reporting period, there were noincidents of forced labor, child labor, or discrimination within the Company.Total number of employeesEmployee turnover rate
Number ofemployees underthe age of 30
Number of employeesin senior management
Ordinary employeesNumber ofemployeesaged 30-50
Number of employees
in middle managementNumber ofemployees overthe age of 50
Number of employeesin junior management
By age (Persons)By level (Persons)
Persons
2,070
2.46%
1,0781,620
The Company advocates for equal freedom for all employees and promotes workplace inclusivity. Any form of targeteddiscrimination is strictly prohibited. Equal development opportunities and welfare protection are provided for groups suchas veterans and people with disabilities. The Company currently employs 28 individuals with disabilities, 15 retired militaryofcers, and 8 retired veterans. There are also 260 in-service veterans. Every year, the Company arranges employmentopportunities for people with disabilities, providing them with the most suitable conditions in terms of workload, laborprotection, and welfare.
The Company places great importance on protecting employee rights and interests and prioritizes democraticcommunication. It has established a democratic management system, with the Staff Congress as the core framework,to safeguard employees' rights to information, participation, expression, and oversight. The Company regularly conductsthe "Promote Enterprise Development with Our Creative Ideas" campaign to solicit employees' rational suggestions,strengthening employees' sense of ownership and allowing them to fully voice their opinions and deeply participate in theCompany's development, fostering a harmonious corporate atmosphere.During the reporting period, the Company successfully held the Ancai High-Tech's Staff Representative Congress anddeliberated and passed relevant agendas, such as the appointment of alternate members of the second session of theTrade Union Committee and personnel matters. Throughout the year, a total of 273 rational suggestions were collectedand annual "Gold Ideas" and "Silver Ideas" selections were conducted.
The Company has established a comprehensive compensation and benets system, adhering to the principles of "job-based pay" and "merit-based rewards". We implement a scientic and modern performance management mechanismand has formulated and implemented theCompensation Management SystemandEmployee Benefits ManagementSystemto fully motivate employees' enthusiasm and creativity. The Company complies with national and local regulationsby providing social insurance and housing provident fund contributions for employees, ensuring the protection of theirlegitimate rights and interests. During the reporting period, the social insurance coverage rate for employees was 100%.
Diversity and Inclusion
Protection of Employee Rights and Interests
Compensation and Benets System
retired military ofcers
During the reporting period, the socialinsurance coverage rate for employees was100%retired veterans
In 2024, the Company contributed a total ofRMB72,433,900
for employees' pensioninsurance, medical insurance, unemployment insurance, work-related injury insurance, and housing provident fund
in-service veterans
currently employs
individuals with disabilities
the Second Session of the Third Staff Congress
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Introduction toAncai High-Tech
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Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
The Company places great importance on the care for female employees and organizes annual health check-ups forthem. On occasions like Mother's Day and Women's Day, the Company plans activities to enrich the spiritual and culturallives of female employees, enhancing their sense of happiness and belonging. This creates a harmonious and warmcorporate culture.
A variety of benets are provided for employees, including:
The Company adheres to the "people-oriented" philosophy and maintains close contact with employees with the tradeunion as a bond. It actively provides assistance for employees in need, supports the education of employees' children,helps special employee groups and retired military officers, and fosters a "family culture" atmosphere to protectemployee rights and interests.
The Company held a variety of rich and colorful staff cultural, sports, and holiday celebration activities; promoted ahealthy and civilized lifestyle; created an open and united cultural atmosphere; supported the all-around development ofemployees; enhanced team cohesion and employee belonging.
Care for Female Employees
Employee Care
CaseHosting an Exciting Women's Day Event Blossoming with CreativityIn 2024, on the occasion of the 114
thInternational Women's Day, the Company organized fun activities such asmaking embossed table lamps and themed ower arrangements.
Blooming in the Warm Spring Breeze - DIY EmbossedTable Lamp
the "Golden Sunower Cup" Employee Basketball GameFlower Arrangements as a Tribute to Women's Day -Fragrance-lled Flowers and a Clean and Ethical Spirit- Themed Flower Arrangements
the "Ode to the Motherland" Revolutionary SongCompetition
Subsidies and
benetsLeave benets
Union benets
Facilities and
welfare
Training
Benets
Only child subsidy, heatstroke prevention allowance, meal allowance, employeehealth check-ups, and personal protective equipment (PPE), etc.Statutory holidays, sick leave, work-related injury leave, marriage leave, bereavementleave, antenatal examination leave, maternity leave, paternity leave, breastfeedingleave, and annual leave, etc.Including employee activities and collective benets.
Entertainment places, cultural and sports activities, etc.
On-the-job training or short-term full-time training for employees, etc.
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Introduction toAncai High-Tech
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Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Talent Training and DevelopmentThe Company upholds the concept that talent is the most important resource for its development. It adheres to theprinciples of "respecting the value of talent, shaping the quality of talent, and dedicating to talent growth". The Companyencourages employees to do their best, unleash their inherent potential, and foster innovation, aiming to achieve mutualgrowth of company benets and employee value. During the reporting period, the Company conducted multiple sessionsof employee training, covering a 100% participation rate. The investment in training amounted to RMB 232,000.
The Company conducted multiplesessions of employee training, covering a
100%
participation rate
The investment in trainingamounted toRMB232,000
In accordance with the development plan and annual operational management goals, the Company has formulated andimplemented systems such as theEmployee Training Management Procedure,Reserve Talent Management Measures,andCompany-wide Talent Enhancement Program. These systems promote comprehensive improvement in talentdevelopment, unlock the intellectual potential of employees, strengthen the building of the talent pool, and meet theCompany's needs for enhancing the qualications of various types of talents.
Implementing a strategy of "strengthening the Company throughtalents", the Company has established a comprehensive talentdevelopment mechanism, emphasizing the training of skilled talents.The goal is to build a talent team with integrity, loyalty, dedication,practical innovation, frankness, responsibility, and tenacity.During the reporting period, the Company introduced high-end talentsthrough collaborations with the Glass Research Institute, R&D centers,and post-doctoral workstations. Collaborations with universities wereestablished for joint training and targeted recruitment of professionaland technical personnel. The Company also partnered with vocationaland technical colleges to establish internship and training bases tocultivate frontline operators. For professional and technical personnel,a mentoring system is implemented. Talent development is includedin the Company's performance evaluation scope, with key technicalpositions having specific training and assessment indicators. Talentreserves are planned and a talent promotion channel is established.
Employee Training Flowchart
University-Enterprise Cooperation ReachedBetween School of Materials Science andEngineering, Henan Polytechnic University andJiaozuo Ancai
Training System
Building a Talent Pool
Determination of Job DescriptionsDetermination of Training Needs
Training Plan DevelopmentImplementation of Training
Training for Outsourced Employees
Skills AssessmentEmployment of Part-time Teachers
Training Effectiveness Evaluation
Training ManagementTraining Assessment
Training for New Employees and
Job TransfersTraining for General Technical JobsTraining for Key Positions
Environmental, Social and Governance Report 2024
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Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance and
Party Building Leadership
Product Innovation and
Supply Chain Management
Environmental Management
and Sustainability
Employee Care andSocial Welfare
Appendices
Occupational Health and Work Safety
Total duration ofoccupational health andwork safety training
hours
Safetyinvestment1,915.22
RMB'0,000Times of safety drillsconducted (re, toxicgas leaks, etc.)
times
Employee workinjury insurancecoverage rate100%
The Company implements a "One Position, Dual Responsibilities" management model for safety and environmentalprotection, having established an organizational structure for safety and environmental protection to oversee themanagement of work safety and environmental protection throughout the entire company. In accordance with lawsand regulations such as theWork Safety Lawand theBasic Norms for Work Safety Standardization of Enterprises, theCompany has formulated theCompilation of Work Safety Management Systems, which covers various aspects such assafety inspections, risk management, emergency safety, and workplace accidents.
Employee health is not only crucial to the operation of the Company but also to the personal happiness of individuals andtheir families. The Company earnestly implements the requirements of laws and regulations such as theOccupationalDisease Prevention and Control Law, theRegulations on Occupational Health Management in the Workplace, and theMeasures for the Supervision and Administration of Employers' Occupational Health Surveillance. The Company adheresto the principle of "prevention first, combining prevention and control" and the principle of "classified management,comprehensive governance". It comprehensively promotes the prevention and control of occupational diseases andensures the physical health of employees.
GB/T 45001-2020/ISO 45001:2018
OccupationalHealth and Safety
ManagementSystem
Work Safety Inspections and Emergency Drills
Work safety measures:
Work Safety
Occupational Health
Case"Hundred-Mile Journey" Spring Route Safety Inspection in 2024
Ancai Energy's West-East Gas Pipeline in the northern Henan province is an important energy supply channel. InMarch 2024, Ancai Energy conducted the "Hundred-Mile Journey" spring route safety inspection activity. A totalof 78 staff members, including cadres and employees, actively participated in the event. They were divided into30 groups to conduct on-foot inspections of the 206-kilometer northern Henan branch pipeline, as well as 12 valverooms and other facilities. Throughout the inspections, a total of 48 potential risks that could affect the safety of thepipeline, such as pressure issues, were identied. These risks were promptly categorized and rectied to ensure thesafe and smooth operation of the natural gas pipeline. This activity further enhances the Company's commitment to"Gas Supply to Northern Henan, Venturing Far and Wide", and establishes a solid safety barrier for the Company'shigh-quality development.
Based on the production reality and job characteristics, standardsfor the distribution of labor protection appliances are established,and labor protection appliances are distributed regularly.Low-noise equipment is used to replace high-noise equipment, andshock absorption and noise reduction measures are implemented.Closed corridors are used for material transportation, and dustfrom material discharge points is collected and controlled withproperly equipped bag dust collectors. Additionally, the workshopfloors are uniformly treated with floor coatings that are slip-resistant, pressure-resistant, wear-resistant, and impact-resistant.Cooperation is established with qualified hospitals to organizeannual occupational health examinations for employees inhazardous positions.Experts from occupational disease prevention and controlinstitutes are invited to provide occupational health education andtraining for employees.
Distributionof protectiveappliancesProductionfacilityrenovationRegular physicalexaminationsfor employeesOccupationalhealth lectures
Implementing overall responsibility for work safety among all employees
Establishing a work safety responsibility system, setting work safety objectives, and having allemployees sign work safety responsibility agreements
Establishing and improving work safety regulations and operating proceduresDeveloping and implementing work safety regulations and operating procedures based on thecharacteristics of processes, equipment, and positionsImplementing a dual prevention system for risk classification and control and hidden dangerinvestigation and governanceEstablishing a list of risk sources and implementing risk classication and control measures; conductinghidden danger investigation and governance through daily inspections and monthly inspectionsDeveloping and implementing emergency response plans for production safety accidents
Developing emergency response plans for production safety accidents and organizing drills according torequirementsConducting informatization construction for work safety
Establishing and utilizing an informatization platform for work safety
Strengthening work safety education and training
Developing and implementing annual work safety education and training plans
Ensuring investment in work safetyAllocating funds as required for necessary work safety conditions, and extracting and utilizing worksafety expenses
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Introduction toAncai High-Tech
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Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
The Company and its subsidiaries, including Ancai Photovoltaic New Materials, Jiaozuo Ancai, Xuchang Ancai, AncaiPhotothermal Technology, Pharmaceutical Glass Project Department and Xinhe Industry have obtained the GB/T 45001-2020/ISO 45001:2018 certication for occupational health and safety management systems. During the reporting period,the Company purchased work-related injury insurance worth RMB 1.4501 million for all employees and work safety liabilityinsurance worth RMB 10,800 for employees in special positions. No occupational disease hazards to employees occurred.
Case
Case
Voluntary Blood Donation Service Activity
Activity of Assisting Students in Autumn
In June 2024, on the occasion of the 21
stWorld Blood Donor Day, an activity with the theme "Illuminate Life throughBlood Donation" was organized. Volunteers actively participated, demonstrating the spirit of volunteer servicethrough their practical actions of "dedication, friendship, mutual assistance, and progress".At the event site, under the professional guidance of medical personnel, volunteers successfully completed theblood donation process. They used their warm blood to convey hope and continued life with love. This activityshowcased the high sense of social responsibility and dedication to society among the Company's employees.
The Activity of Assisting Students in Autumn was conducted. Research was conducted on families of employeesfacing difculties to gain a deep understanding of the challenges and needs their children face in terms of educationand employment. Assistance was provided for students through ideological education, scholarships, and skilltraining. Employment assistance was given to university graduates, encouraging innovation and entrepreneurship.With a pragmatic approach, support was provided to help children from families facing difficulties successfullycomplete their studies and achieve employment as soon as possible.
Voluntary Blood Donation Service ActivityAncai Energy Conducts the 22
nd
Occupational DiseasePrevention and Control Law Promotion Week Activity
Ancai Photothermal Technology Conducts Employee MentalHealth Intervention Training
Social Responsibility and Public Welfare
While achieving stable development, the Company actively responds to national and government calls, practices ruralrevitalization, and proactively engages in public welfare activities such as providing medical assistance, supportingeducation, and aiding the needy. The Company actively fullls its social responsibilities and brings warmth and assistanceto vulnerable groups.In 2024, the Company directly added more than 80 new labor jobs in the surrounding area and indirectly generatedemployment opportunities for over 150 people, thus accelerating the pace of rural prosperity in the Company's vicinity.During the reporting period, the Company spent approximately RMB 137 million on local logistics and transportationservices and around RMB 98 million on purchasing wood products and packaging materials. Through these actions, theCompany promoted the development of local rural industries and achieved mutually benecial outcomes. The Companyalso connected with assistance villages and provided care and support for families in need during the Double NinthFestival and Spring Festival. Additionally, the Company ensured timely and full payment of employment security fundsfor disabled individuals to support their employment opportunities. The Company organized various volunteer services,accumulating a total of 120 volunteer attendances in activities such as green and low-carbon initiatives, promotingcivilized transportation, city cleaning, and voluntary blood donations. Through these practical actions, the Companyfullled its social responsibilities. Jiaozuo Ancai actively established a collaborative relationship with Shangtun Village inBoai City, - "Village-Enterprise Co-construction". During festivals like the Spring Festival, "99" Public Welfare Day, and theDouble Ninth Festival, the Company conducted activities to bring warmth to the village through visits, targeted donations,and themed party activities, actively fostering harmonious relationships between the village and the enterprise. AncaiPhotovoltaic New Materials adhered to the philosophy of "Caring for the Rural, Pride in Assisting Agriculture". TheCompany purchased over 14,300 catties of vegetables from Gaobeihe Village in Longquan Town, Long'an District,effectively solving the problem of vegetable oversupply for local farmers. Furthermore, a cooperation agreementwas signed with Maofeng Planting Professional Cooperative in Gaobeihe Village, Long'an District, to jointly promoteagricultural development.Occupational Health and Safety Management System Certicate
Environmental, Social and Governance Report 2024
About This
Report
Address by Chairmanof the Board
Key ESGPerformance DataHonors andAwards
Introduction toAncai High-Tech
Corporate Governance andParty Building Leadership
Product Innovation andSupply Chain Management
Environmental Managementand Sustainability
Employee Care andSocial Welfare
Appendices
Sustainability Report Index TableAppendices
Report Contents
Guidelines No. 14 of the Shanghai StockExchange for Self-regulation of ListedCompanies - Sustainability Report (Trial)
GRI Standards
About This Report2-2, 2-3, 2-6Address by Chairman of the Board2-11Introduction toAncai High-Tech
About Ancai Hi-Tech2-1ESG managementStakeholder communication2-29, 3-1, 3-2CorporateGovernance andParty BuildingLeadership
Corporategovernance
Due diligence2-9, 2-10, 2-12Business ethics
Anti-commercial bribery and anti-
corruption, anti-unfair competition
205-2Party buildingleadershipProductInnovation andSupply ChainManagement
Innovation-drivendevelopment
Innovation-driven, anti-unfaircompetition
206-1Productresponsibility
Product and service safety andquality, data security and customerprivacy protection
417-1, 418-1Supply chainsecurity
Supply chain security, equaltreatment of SMEs
2-6
EnvironmentalManagementandSustainability
Environmentalmanagementsystem
Environmental compliancemanagementEnergy utilizationEnergy utilization302-1, 302-4Water UtilizationWater Utilization303-1, 303-2Waste and pollutantmanagement
Pollutant emissions and wastedisposal
306-1, 306-2, 306-3Response to climatechange
Response to climate change
Employee Careand SocialWelfare
Employee rights andbenets
Employees
2-7, 401-2, 405-1Talent training anddevelopment
404-1Occupational healthand work safety
403-1, 403-5, 403-9Social responsibilityand public welfare
Social contribution203-1
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□ Introduction to Ancai High-Tech □ Corporate Governance □ Business Ethics □ Party Building Leadership
□ Innovation-driven Development □ Product Responsibility □ Supply Chain Security □ Environmental Management
□ Energy Utilization □ Water Utilization □ Waste and Pollutant Management □ Response to Climate Change
□ Circular Economy □ Employee Rights □ Talent Development □ Occupational Health and Safety □ Social Welfare
5. What content needs further improvement in this Report?
□ Introduction to Ancai High-Tech □ Corporate Governance □ Business Ethics □ Party Building Leadership
□ Innovation-driven Development □ Product Responsibility □ Supply Chain Security □ Environmental Management
□ Energy Utilization □ Water Utilization □ Waste and Pollutant Management □ Response to Climate Change
□ Circular Economy □ Employee Rights □ Talent Development □ Occupational Health and Safety □ Social Welfare
6. Your comments or suggestions for this Report.
Your Information: _____________________________________________ Name: _____________________________________________Company: _____________________________________________ Position: _____________________________________________Tel.: _____________________________________________ E-mail: _____________________________________________
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Environmental, Social and Governance Report 2024
About This
Report
Address by Chairman
of the Board
Key ESG
Performance DataHonors and
Awards
Introduction to
Ancai High-Tech
Corporate Governance and
Party Building Leadership
Product Innovation and
Supply Chain Management
Environmental Management
and Sustainability
Employee Care and
Social Welfare
Appendices