Environmental, Social, and Governance（ESG）Report

2024

Stock Code

Address：No.6 Anmin Road, Panyang Industrial Park, Huangdai Town, Xiangcheng Borough, Suzhou City.Tel：400-828-7377Website：www.jinhonggroup.com

Look forward to the FutureAppendix I: Reporting IndexAppendix II: Performance TableFeedback Form

About this ReportMessage from the Chairman2024 Sustainable DevelopmentHighlightsAbout Jinhong GasSustainability GovernanceTopic:

Digital Intelligence Empowerment:

Unlocking New Code to SustainableDevelopment

CONTENTS

Empowering Talent,Shaping a Vision ofExcellence

Standardizing Corporate Governance? ……………?28Consolidating Risk Management? ……………………?32Strengthening Business Ethics ? ……………………?33Ensuring Information Security? ………………………?37

Protecting Employee Rights and Interests? ………?76Empowering Employee Growth ? ……………………?82Focusing on Employee Care? …………………………?86

Addressing Climate Change? …………………………?40Implementing Environmental Management? ……?43Enhancing Resource Utilization? ……………………?45Ensuring Compliant Emission? ………………………?48Protecting Ecosystem?…………………………………?51

Building a Prosperous Home Together? ……………?90Engaging in Philanthropic E?orts? …………………?90

Optimizing Innovation System?………………………?54Respecting Intellectual Property Rights? …………?57Adhering to Product Quality? …………………………?58Focusing on Intelligent Manufacturing? ……………?61Prioritizing Safe Production? …………………………?61Delivering High-Quality Services? ……………………?64

CollaborativeDevelopment,Forging NewIndustry ParadigmsBuilding a Responsible Supply Chain? ………………?68Promoting Strategic Cooperation? …………………?70Expanding Overseas Operations? ……………………?71Co-building with Industry? ……………………………?72

ResponsibleStewardship,Co-advancingCollective Well-being

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

HarmoniousCoexistence,Greening theFuture

This is the second Environmental, Social, and Governance Report released to the public by Jinhong Gas Co., Ltd.(hereinafter referred to as the Jinhong Gas, the Group or we), which comprehensively details the Group's Environmental,Social and Governance practices and performance in 2024 based on the principles of objectivity, standardization,transparency and comprehensiveness.

About this Report

Compilation BasisThis report is prepared with reference to theSelf-Regulatory Guidance No. 14 for Listed Companies of Shanghai Stock Exchange-Sustainability Report (Trial Implementation)issued by Shanghai Stock Exchange (SSE) , theGRI Sustainability Reporting Standards(GRIStandards) published by the Global Sustainability Standards Board (GSSB), theGuidelines on China's Corporate Social ResponsibilityReports (CASS-ESG 5.0), the United Nations Sustainable Development Goals (SDGs) requirements, and theRecommendations of theTask Force on Climate-related Financial Disclosures (TCFD).

Reporting Period

This is a report covering the period from January 1, 2024 to December 31, 2024 (the "Reporting Period"). For the purpose ofmaking the report more comparable and forward-looking, some of the content appropriately refers back to previous years orhas forward-looking descriptions. This report is issued on an annual basis, consistent with the ?nancial year.

Reporting Scope and BoundariesThis report covers Jinhong Gas and subsidiaries/branches under its control. Unless speci?ed otherwise, the scope is consistentwith that of the Group's Annual Report.

Data InterpretationThe sources of data used in the report include the original data of the Group's actual operation, public data from governmentdepartments, annual ?nancial data, relevant internal statistical statements, third-party questionnaires and interviews. The?nancial data in this report is denominated in CNY, and in case of any inconsistency with the ?nancial report, the ?nancialreport shall prevail.

Access to the Report

This report can be viewed and downloaded from the o?cial website of the Jinhong Gas (www.jinhonggroup.com) and ShanghaiStock Exchange (www.sse.com.cn).

Con?rmation and Approval

The Board of Directors of the Group approved this report on March 25, 2025 in conjunction with the Annual Report. TheBoard is committed to overseeing the content of the report and ensuring its freedom from misrepresentation or misleadingstatements. It is also responsible for ensuring the truth, accuracy, and completeness of the content.This report is published in Chinese. The English version shall be translated from the Chinese version and in case of anydiscrepancy between the two versions, please refer to the Chinese one.

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAbout this Report

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Focusing on sustainable development is the eternalpursuit of the Jinhong Gas.

The Group ?rmly practices the concept that "clear watersand green mountains are invaluable assets", activelyresponds to the goals of "peaking carbon emissions andsubsequent carbon neutrality", abides by internationalstandards, effectively fulfils its social responsibility,and lays the cornerstone of green development. Inthe market competition, the Group takes sustainabledevelopment as a guideline, continuously improvesthe quality of products and services, optimizes thebusiness structure, contributes to achieving sustainabledevelopment goals, and collaboratively builds a betterfuture.Looking back at the past, the Group has taken solidsteps on the path of intelligent transformation, activelyresponding to the innovation-driven development strategy,transforming industries with digital technologies, andcontinuously improved the intelligent level. At the sametime, it proactively delves into sustainable practices andexplored application of renewable energy and has laid asolid foundation for realizing eco-friendly production andlow-carbon development.Maintaining ecology is the solemn commitment ofthe Jinhong Gas to the future.The Group adheres to the concept of greendevelopment and integrates environmental protectioninto every aspect of development. It has strengthenedenvironmental management and rigorously controlledenvironmental pollution in the production process

Message from the Chairman

Chairman and General Manager of Jinhong GasJIN XIANGHUA

to ensure that waste gas, wastewater, waste residueand other pollutants discharged up to standard, whileusing environmentally-friendly processes to minimizeproduct impact on the environment.Striving for excellence is the power source of theJinhong Gas's continuous breakthrough.The Group focuses on innovation-driven development,improves the quality control mechanism, constantlylaunches new products and services with marketcompetitiveness to meet the diversified needs ofclients. As a leading environmentally-friendly, intensiveand comprehensive gas service provider in China, itwill continue to increase investment, actively explorenew technologies and ?elds, and endeavor to becomea leader in the green and low-carbon sector.Hand in hand, Jinhong Gas embarks on the road tosustainable development.The Group collaborates with partners, industryassociations, government departments, and otherstakeholders to promote the sustainable developmentof the industry. Additionally, the Group participates inenvironmental protection initiatives, promotes greenliving, and supports the development of green industrychains.Attaching importance to talent is the key to corecompetitiveness of the Jinhong Gas.The Group is dedicated to increasing investment,establishing a comprehensive training system, and

providing employees with ample developmentopportunities. It aims to foster an inclusive andinnovative culture and encourage active participation insustainable development practices. The commitmentis to cultivate an outstanding team with a strong senseof sustainable development to create a brighter future.

Taking responsibility is an important guarantee for theJinhong Gas to win the trust of the society.The Group maintains a strong sense of socialresponsibility and fulfils its obligations as a corporatecitizen. It also supports social welfare initiatives andactively participates in poverty alleviation, educationsupport, and other activities to contribute to thedevelopment of society.In the forthcoming voyage, embracing the concept ofsustainable development, the Group will relentlesslyadvance intelligent transformation and the research,development and application of clean technologies.We will intensify our commitment to legal compliance,fortify our endeavors in eco-conscious construction,elevate the quality of our products and services, propelthe trajectory towards high-quality development. Handin hand with our partners and stakeholders from all walksof life, we will collectively foster sustainable evolution ofthe industry, lending greater impetus to the realizationof the vision of a Beautiful China. With unwaveringdetermination, we will strive for a brighter tomorrow!

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportMessage from the Chairman

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2024 Sustainable Development Highlights

Economic Performance

Revenue

CNY2,525.28 Million

Net Income Attributable to Shareholders of Listed Company

CNY

201.23

MillionTotal AssetsCNY6,767.23 Million

Total Tax Payment (Excluding personal income tax)

CNY

160.63

Million

Environmental PerformanceInvestment in Environmental ProtectionCNY

4.01

Million

Integrated Energy Intensity

11.11

tons of standard coal per million CNYWater Intensity1,512.83 tons per million CNY

Greenhouse Gas Emission Intensity (Scope 1 and Scope 2)

46.14

tCO

e per million CNY

Holding ofShareholders'Meetings

times

InvestorCommunication

times

Coverage of EmployeeAnti-corruption Training

%

Completed Internal AuditProjects

items

Governance Performance

Coverage of Five Social Insurancesand One Housing Fund

%

Coverage of NewEmployee Training

%

Employee Welfare Expenses

CNY

53.78

Million

Training Investment

CNY

0.76

Million

Employee Performance

R&D InvestmentCNY

100.78

Million

Patents Granted

items

Internal Quality Audit

times

Coverage of Safety Training

%

Safety Input

CNY

29.02

Million

Industrial Performance

Included in

SSI ESG Leading Index Fund Product

Golden Dawn Award -EnvironmentalResponsibility Award

2024 Best ESG Practice Award forListed Companies

ESG Rating in 2024 : A

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report2024 Sustainable Development Highlights

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Founded in 1999, Jinhong Gas Co., Ltd. is an environmentally-friendly, resource-e?cient, and comprehensive gas service provider, specializing in integrated solutionsencompassing gas R&D, production, sales, and services. The Group's headquarters islocated at Panyang Industrial Park, Huangdai Town, Xiangcheng District, Suzhou. Itbecame listed on the STAR Market in June 2020 (Stock Code: 688106). Over decades ofdevelopment, the Group has established over 70 subsidiaries, committed to buildingChina's leading national brand in the industry and delivering "Supreme Excellence" toclients through its motto: "Jinhong Gas, Exquisite Purity".

About Jinhong Gas

Group Overview

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAbout Jinhong Gas

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Group Structure

金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告About Jinhong Gas

Jinhong Gas Co., Ltd.

Xi'an Weiguang (Xianyang) Gas Co., Ltd.Suzhou Qidu Jinhong Gas Co. Ltd.Suzhou Sutong Lique?ed Petroleum Gas Ltd.Jishan County Mingfu Gas Co., Ltd.Jinhong Gas (Yixing) Co., Ltd.Jurong Jinhong Electronic Materials Co., Ltd.Jinhong Gas (Quanzhou) Co., Ltd.Wuhan Jinhong Wanrun Electronic Materials Co., Ltd.Zhangjiagang Jinhong Electronic Material Co. Ltd.Xi'an Weiguang Gas Co.,Ltd.Suzhou Industrial Park Huanya Trading Co.,Ltd.Jinhong Gas (Shanghai) Co.,Ltd.Suzhou Jinhong Inspection and Testing Technology Co.,Ltd.Jinhong Gas (Rugao) Co.,Ltd.Jinhong Gas (Tianjin) Co.,Ltd.Shanghai Yiyang Medical Gas Co.,Ltd.Shanghai Zhenzhi Gas Co.,Ltd.Shanghai Changhe Medical Gas Co.,Ltd.Jinhong Gas (Qidong) Co.,Ltd.Jinhong Gas (Xiamen) Co.,Ltd.Wuxi Jinhong Semiconductor Technology Co.,Ltd.Guangzhou Jinhong Electronic Materials Technology Co.,Ltd.Huainan Jinhong Carbon Dioxide Co.,Ltd.Quanjiao Jinhong Electronic Materials Co.,Ltd.Solare Green Energy (Suzhou) Co.,Ltd.Qingdao Jinhongrun Gas Co.,Ltd.Beijing Jinhong Electronic Materials Co.,Ltd.Jinhong Gas (Pizhou) Co.,Ltd.Su Xiang Cooperation Zone Jin Hong Run Gas Co.,Ltd.Suzhou Jinhongrun Investment Co.,Ltd.Changsha Mánd Gas Co.,Ltd.Taicang Jinhong Electronic Materials Co.,Ltd.Shanghai Shennan Special Gas Co.,Ltd.Chongqing Xipeng Jinhongrun Electronic Materials Co.,Ltd.Taizhou Guangming Oxygen Supply Co.,Ltd.Hai'an Fuyang Acetylene Gas Co.,Ltd.Hai'an Jixiang Gas Co.,Ltd.Haining Lishen Oxygen System Co.,Ltd.Shanghai Jinhong Runze Gas Co.,Ltd.Meishan Jinhong Electronic Material Co., Ltd.Suqian Jinhong Gas Co.,Ltd.JinHong Gas Holding Pte. Ltd.Suzhou Wuzhong Jinhong Gas Co.,Ltd.Shanghai Sudai New Materials Co.,Ltd.Suzhou Jinhong Logistics Co.,Ltd.Chongqing Jinhong Haige Gas Co.,Ltd.Chongqing Jinsu Chemical Co.,Ltd.Suzhou Jinpao Electronic Technology Co.,Ltd.Jinhong Gas Electronic Materials (Huai'an) Co.,Ltd.Pingdingshan Jinhong Puen Electronic Materials Co.,Ltd.Suzhou Jinruijie Clean Technology Co., Ltd.Suzhou Jinhua Runze Energy Co., Ltd.Zhangjiagang Jinhong Gas Co., Ltd.Suzhou Jinhong Gas Technology Development Co., Ltd.Kunshan Jinhong Carbon Dioxide Co., Ltd.Shanghai Xintouqiao Longshen Gas Sales Co.,Ltd.Xuzhou Jinhong Gas Co., Ltd.Suzhou Jinhong Gas Co., Ltd. Wuzhong BranchSuzhou Jinhong Gas Co., Ltd. Wujiang BranchSuzhou Jinhong Gas Co., Ltd. Huangqiao BranchSuzhou Jinhong Gas Co., Ltd. Yangchenghu BranchSuzhou Jinhong Gas Co., Ltd. Shanghai Pudong Branch

Qianjiang Runsu Energy Technology Co.,Ltd.Chongqing Jinsu Transportation Co.,Ltd.Jinhong Gas (Jiaxing) Co.,Ltd.Jiaxing Yaoyi Gas Co.,Ltd.Jiaxing Jinhong Logistics Co.,Ltd.Suzhou Wujiang Tongzhen Transportation Co., Ltd.Changsha Yihua Gas Co.,Ltd.Zhuzhou Hualong Special Gas Co.,Ltd.Changsha Jinhong Mande Logistics Co.,Ltd.JINHONG GAS (SINGAPORE) INVESTMENT PTE. LTD.JINHONG GAS (VIETNAM) CO., LTD.CHEM-GAS PTE LTDJin Hong Gas (Thailand) Co., Ltd.Jinhong Gas (Yingkou) Co., Ltd.Jinhong Gas (Zibo) Co., Ltd.Qujing Malong Chenggang Gas Co., Ltd.Jinhong Gas (Zhanjiang) Co., Ltd.

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAbout Jinhong Gas

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Business Overview

Over more than two decades of exploration and development, the Group hasestablished a comprehensive product portfolio, a well-structured distributionnetwork, and reliable delivery capabilities, forming a robust gas supply andservice system, becoming capable to provide clients with over 100 gas productsacross three major categories: specialty gases, bulk gases, and fuel gases. TheGroup boasts an extensive product line, supplying not only specialty gases suchas ultra-high-purity NH

, high-purity N

O, TEOS, high-purity CO

, and high-purityH

, but also electronic bulk carrier gases for the semiconductor industry, as wellas bulk gases and fuel gases for other industries.

Corporate Culture

Mission

Va

lu

e

Vision

About Jinhong Gas

/ 14 // 15 /

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Milestones

The First Five-Year Plan

1999~2004

Based in Suzhou, integratedresources and expanded the market.

The Group was established in 1999 on the foundation of the former SuzhouLiquid Oxygen Manufacturing Plant. During this phase, the Group's mainproducts were bulk gases such as O

, N

Ar, C

H

. The Group set up a smallair separation production unit in Suzhou and acquired part of the gasmanufacturing assets of Air Liquide in Suzhou, continuously expanding themarket and gradually establishing a sales and service network.

The Fifth Five-Years Plan2020~2025Implemented standardized management across the Group, driving high-quality development. Listed on the STAR Market, Stock Code: 688106Awarded as the national SDRI (Specialized, Re?nement, Di?erential, and Innovation) "Little Giant" enterprise, the "13th Five-Year

Plan" gas industry leading enterprise, the "13th Five-Year Plan" gas industry innovative enterprise, Jiangsu Province Four-Star Cloud-Enabled enterprise. Besides, one of our devices for recovery and puri?cation of N

O won the gas industry patent prize award.

2020

O?cially changed the Group name to Jinhong Gas Co., Ltd. Acquired Suzhou Sutong Lique?ed Petroleum Gas Ltd.Awarded the titles of National Intellectual Property Demonstration Enterprise, National Intelligent Manufacturing

Demonstration Factory, Jiangsu Provincial Outstanding Enterprise in Scienti?c and Technological Innovation Development,Jiangsu Manufacturing Outstanding Contribution Award, and Jiangsu Governor's Quality Nomhaiination Award; successfullyadmitted into Jiangsu Province's Cohort of Innovative Leading Enterprises.

2022

Achieved a breakthrough in the first electronic bulk gases supply project by signing a contract with Semiconductor

Technology Innovation Center (Beijing) Corporation (abbreviated as STIC).Acquired Haining Lishen , Hai'an Jixiang, Hai'an Fuyang, Taizhou Guangming, Shanghai Shennan, Changsha Mánd, Qidu Fuel

Gas, and Zhuzhou Hualong to integrate bulk storage and transportation networks.Recognized as a Pilot Enterprise (AAA Level) for Standard Implementation of Jiangsu Province's Integration of Informatization

and Industrialization Management System (Upgraded Version) in 2021, and awarded SDRI (Specialized, Re?nement, Di?erential,

and Innovation) "Little Giant" enterprise of Jiangsu Province in 2021.

2021

Acquired Shanghai Zhenzhi, Shanghai Changhe, and Shanghai Yiyang to consolidate medical O

sales channels in the

Shanghai region. Won the bid for CR Semico bulk gases supply project, marking China's ?rst mature mass-production replacement of high-

volume gas stations for FAB and achieving the ?rst breakthrough in the domestic bulk electronic gas project market. Successfully issued convertible bonds.Awarded the title of National "Green Factory" in 2022, Jiangsu Province May 1st Labor Certi?cate, Jiangsu 5A-Level Civilized

Organization designation, Jiangsu Key Cultivated and Internationally Renowned Brand recognition, and Jiangsu Industrial

Internet Demonstration Project Five-Star Cloud-Enabled Enterprise certi?cate.

2023

Won bids for bulk electronic gas supply projects with Wuhan Changfei Electronics, Lakeside Optoelectronics, and

Project Phase II of STIC, Chongqing Runxi Microelectronics, etc.;achieved mass production supply for Xiamen Tianma

Optoelectronics, CR Semico, and Wuhan Changfei bulk electronic gas projects and temporary gas supply for Project Phase II

of STIC.Secured air separation supply projects including Yingkou Jianfa's single 70,000-grade unit, Shandong Ruilin Polymer's

30,000-grade unit, Yunnan Chenggang Group's three-unit project, o?cially commenced operation of Jishan Mingfu Steel's

three-unit air separation collaboration. First overseas on-site gas production project successfully signed.

2024

The Third Five-Year Plan

2010~2014

Advanced high-end specialty gases, andupgraded corporate governance.In 2010, 7N electronic-grade ultra-high-purity NH

officiallyentered production and operation. In 2012, the Group investedin the construction of a natural gas-to-hydrogen project. In2013, the Group's testing center was accredited as a CNAS-recognized laboratory, significantly improving the qualitycontrol capabilities. During this phase, the Group's productvariety continued to increase, with signi?cant enhancementsin product quality, testing technology, R&D capabilities, Withthe Group's listing on the NationalEquities Exchange andQuotations' in 2014, both brand awareness and corporateimage were enhanced.

The Fourth Five-Year Plan2015~2019Expanded vertically and horizontally, forging thepremier national brand in the gas industry.

The Group proposed the "Vertical & Horizontal Development" strategy.Vertically, the Group developed and produced multiple types of high-barrier specialty gas products through independent research andproduction, achieved multiple rounds of expansion for ultra-high-purityNH

, and initiated new projects for high-purity N

O and H

, acceleratingthe industrialization of electronic specialty gases. Horizontally, theGroup advanced horizontal expansion and cross-regional development,consolidating the foothold in the Yangtze River Delta market whilestrategically expanding nationwide, and actively developed retailnetworks in key regions such as the Pearl River Delta, Beijing-Tianjinarea, and Sichuan-Chongqing region.

Expanded the gas category andenhanced the brand in?uence.The Second Five-Year Plan2005~2009

In 2005, the Group built the first dry ice manufacturing line, expanding theapplication of CO

. In 2009, the Group invested in the construction of a 100,000-ton annual carbon capture construction project. In 2009, the Group reformedshareholding, enhancing the overall governance structure. During this phase,the product line of the Group was greatly enriched, initiating a business modelof developing circular economy and tail gas recovery as well as utilization.

NEEQ, also known asChina's New Third Board

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAbout Jinhong Gas

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LevelsHonors and Awards

NationalNational Enterprise Technology CenterNationalNational Postdoctoral ProgrammeNational

National SDRI (Specialized, Re?nement, Di?erential, and Innovation) "Little Giant"

EnterpriseNationalNational Intellectual Property Demonstration EnterpriseNationalNational High-Tech EnterpriseNationalNational Intelligent Manufacturing Demonstration FactoryNationalNational Green FactoryNationalNational-Level Smart Manufacturing Excellence SceneNationalNational Service-Oriented Manufacturing Demonstration PlatformNationalChinese Well-known TrademarkNationalChina Patent Excellence AwardNational

Demonstration Enterprises of China Industry-University-Research Institute

Cooperation Innovation

LevelsHonors and AwardsProvincialJiangsu Province Contract-abiding and Credit-worthy EnterpriseProvincial

Internationally Renowned Brands that Jiangsu Province focuses on Cultivating and

DevelopingProvincialJiangsu Province May 1st Labor Certi?cateProvincialNomination Award of Jiangsu Governor's Quality AwardProvincial

The New Round of Innovative Leading Enterprises in Jiangsu Province to Cultivate

Action entering warehouse of EnterprisesProvincial

Jiangsu Province Industrial Internet Demonstration Project Five-Star Cloud

EnterpriseProvincialExcellent Enterprise with Outstanding Contributions "Made in Jiangsu"Provincial

Excellent Enterprise of Jiangsu Province in Science and Technology Innovation and

DevelopmentProvincial"Quality Benchmark" of Jiangsu ProvinceProvincialTop 100 Innovative Enterprises in Jiangsu ProvinceProvincial

The First Batch of Supply Chain Innovation and Application Key Cultivation

Enterprises in Jiangsu ProvinceProvincial

Jiangsu Engineering Technology Research Centre for Specialty Gases and

Adsorbents PreparationProvincialJiangsu High Purity Specialty Gases Engineering Centre

Awards and Honors

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAbout Jinhong Gas

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Sustainability GovernanceSustainability ConceptThe Group adheres to a sustainable development path, pursuing economic benefits while actively focusing on balancingenvironmental protection, social responsibility, and long-term growth. The Group upholds a sustainable development philosophycentered on safety, reliability, efficiency, and environmental friendliness. Meanwhile, it fully aligns its development directionwith global sustainability trends and collaborates with stakeholders to advance the realization of sustainable development goalsthrough concrete actions.

Actively Responding to the United Nations SustainableDevelopment Goals

In the context of accelerating globalization and technological leaps, the sustainable development trend led by corporategovernance, environmental protection, and social responsibility has become a global consensus. Jinhong Gas fully recognizesthat a company's sustainable development capabilities are the core element of enhancing corporate competitiveness and hascontinuously strived to improve these capabilities.Guided by the United Nations Sustainable Development Goals (SDGs), Jinhong Gas has formulated management objectivesfor sustainable development, integrating its operational realities. These objectives span economic, social, and environmentaldimensions, outlining the direction for future development and highlighting the Group's responsibility and commitment to globalsustainable development initiatives.

Rights & Duties, BuildingGovernance Foundations

Harmonious Coexistence,Greening the Future

Innovative Technology, Driving High-Quality GrowthCollaborative Development, Forging New Industry Paradigms

Empowering Talent, Shaping a

Vision of Excellence

Governance

Environmental

Industrial Employee

Commonwealth

可持续发展治理金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告

Responsible Stewardship, Co-advancing Collective Well-being

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportSustainability Governance

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StakeholdersExpectations and DemandsCommunication and Response

Governmentand Regulator

Business EthicsEnvironmental Management Energy E?ciency & Carbon Reduction Water Management Circular EconomyHealth & Safety

Government Communications Information Disclosure Daily Communication and Reporting Listed Group Activities

Client

Product Quality Management Clients Relationship Management Digital Intelligence Transformation Circular Economy Energy E?ciency & Carbon Reduction

Client Visits Daily Communication Technical and Product Exchange Meetings Factory Visits Client Satisfaction Surveys Clienttraining E-mail & Tel

Employee

Health and Safety Employee Training and Development Employment Practices Digital Intelligence Transformation

Employee Representatives Meeting Employee Forum Suggestion Box Employee Satisfaction Survey Corporate Culture Activities Proposal Management Regular Training Internal Publication Company Media Matrix

Community

Environmental Management and Compliance Water Management Energy Conservation and Carbon Reduction Health & Safety Community Welfare

Social Public Welfare Activities Community Monitoring and Feedback Environmental Risk Assessment Industry Talent Development ProgrammesSupplier

Supply Chain Management Product Quality Management Health & Safety Digital Intelligence Transformation

Supplier Training Supplier Audit and Supervision Supplier Exchange Meeting Technical Exchange and R&D Cooperation E-Mail & Tele

Shareholder andInvestor

Corporate Governance Risk & Compliance Management Business Ethics Digital Intelligence Transformation Energy E?ciency & Carbon Reduction Product Quality Management

General Meeting of Shareholders Information Disclosure Investor Hotline Online Interactive Platform Email

Industryassociation andProfessionalOrganization

Science and Technology Innovation

Achievements Quality Assurance Strategic Cooperation Industry Co-construction

Forum Promotional Event Other Meetings

Media

Corporate Governance Community Welfare Disclosure of Information

Group O?cial Website Group Media MatrixCommunication Conference

Communication with Stakeholders

The Group places high importance on communication and management with stakeholders, consistently addressing the opinions and demands of bothinternal and external stakeholders. The Group has established diversi?ed communication platforms to enhance information transparency.The Group continuously optimizes its sustainable development e?orts, builds a positive corporate image, cultivates a responsible brand, and lays asolid foundation for ful?lling environmental, social, and governance responsibilities. The Group's key stakeholders primarily include government andregulatory agencies, clients, employees, communities, suppliers, shareholders and investors, industry associations and professional organizations,media, among others.

Analysis of Material IssuesJinhong Gas proactively understands, monitors, andresponds to stakeholders' expectations and concernsregarding the Group's sustainable developmentperformance. The Group identifies the challengesto its sustainable development and establishes amateriality assessment mechanism by aligning withdomestic and international disclosure requirementsfor social responsibility and sustainability, priorityconcerns of rating agencies, and evolving industrypolicies. Through annual comprehensive analysis ofboth external environments and internal operations,the organization determines its yearly materialtopics for focused management.The Group identi?es and assesses the materialityof ESG issues, prioritized key ESG topics, anddeveloped a materiality matrix based on twodimensions: "importance to the Group" and"importance to stakeholders", reflecting thesigni?cance of each issue.

R&D Management Health & Safety Quality Management Supply Chain Management Clients Relationship Management DE&I Employee Training &Development Employee Welfare Intellectual Property Protection Information Security Rural Revitalization Community Welfare

Social

Importance to the GroupVery HighHigh

Importance to Stakeholders

Very High

Governance TopicsEnvironmental TopicsSocial Topics

EnvironmentalManagementAddressing Climate ChangeEnergyManagementEcological Protection

Waste Management

Circular Economy

Exhaust Gas ManagementWater Management

Compliance

Business Ethics

Three Committees Structure

R&D ManagementHealth & Safety

Quality ManagementSupply Chain Management

Information Disclosure

Shareholders & InvestorsProtection

Information Security

DE&IEmployee Training &Development

Employee WelfareIntellectual Property ProtectionCommunity WelfareRural Revitalization

Clients RelationshipManagement

Environmental

ManagementAddressing Climate

Change Energy Management Ecological Protection Circular Economy Waste ManagementExhaust Gas

Management Water Management

Environmental

Compliance Business EthicsThree Committees

StructureInformation

DisclosureShareholders

& Investors

Protection

Governance

金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告可持续发展治理Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportSustainability Governance

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Centered on end-to-end digital management, the Group has built an intelligent factory ecosystem integrating materialcontrol, production, smart filling, logistics, safety management, and comprehensive operations. System-widecoordination and 24/7 monitoring ensure e?cient production execution, while a full-chain traceability system guaranteesquality. By the end of the Reporting Period, the Group earned multiple accolades, including National IntelligentManufacturing Demonstration Factory, National Outstanding Smart Manufacturing Scenario (Real-Time Safety RiskMonitoring), Jiangsu Provincial Intelligent Manufacturing Demonstration Workshop, Jiangsu Five-Star Cloud Enterprise,Jiangsu Industrial Information Security Star Enterprise, and the second batch of Suzhou Industrial Internet BenchmarkApplication Enterprise etc. These certi?cations solidify its leadership in process-oriented smart manufacturing for theindustrial gas sector.

Production CollaborationIntegration:

"Smart Manufacturing" DrivesGreen Productivity

By deeply coupling SRM, ERP (SAP), TMS, and HHT systems, the Group has constructed a green supply chain network,integrating data from supplier onboarding, raw material procurement, smart scheduling, to logistics. This addresseschallenges unique to the gas industry, such as product complexity, transportation radius sensitivity, and demandvariability. On the procurement front, a tiered supplier management system and digital platforms enable end-to-end online collaboration, shortening decision cycles. The logistics system replaces static planning with dynamicmanagement, optimizing vehicle allocation to boost delivery e?ciency and reduce costs. By the end of the ReportingPeriod, the Group was recognized as a National Service-Oriented Manufacturing Demonstration Platform, driving theindustrial gas supply chain toward low-carbon circularity and unlocking sustainable value across the chain.

Supply Chain CollaborationIntegration:

"Green Synergy" UnleashesSustainable Value

Business-FinanceCollaboration Integration:

"Digital Core" Enables GreenDecision-Making

By integrating systems such as ERP (SAP), OA, and SRM, the Group has established a business-?nance integrated "digitalcore," enabling real-time data linkage across marketing, procurement, and production. The newly launched ?nancialshared service center during the reporting period consolidates accounting functions for subsidiaries, leveraging toolslike the private reimbursement platform and treasury management system to centralize ?nancial processes, standardizeoperations, and enhance data security. This ensures the e?cient implementation of an integrated business-?nance-taxmodel. By bridging ?nancial and operational data through analytics, the Group has signi?cantly improved operationaltransparency and decision-making rigor, supporting green initiatives and laying a solid foundation for sustainabledevelopment.

MarketingManagementProcurementManagement

LogisticsManagement

EquipmentManagement

ProductionManagementQualityManagementSafety &EnvironmentalManagement

Management DigitizationPlatform Intelligence

OAERP(SAP)SRMQMSHHTTMSSCADADCSOMSBI……

Business-finance integration quantifies ESG value, production synergy scales green practices, and supply chain collaborationcultivates sustainable growth. By weaving digital management and intelligent platforms into its operational fabric, the Grouphas created a sustainability network spanning the entire value chain, ensuring every cubic meter of gas carries the dual DNAof intelligence and green innovation. This approach delivers the "Jinhong Solution" for advancing ESG commitments.

Digital Intelligence Empowerment: Unlocking NewCode to Sustainable Development

Amid the global manufacturing industry's accelerated transition toward "low-carbon practices, intelligent transformation,and collaborative innovation," the Group has achieved end-to-end integration across marketing, procurement, logistics,equipment management, production, quality control, and safety/environmental systems through deep convergence ofcore platforms including OA, ERP (SAP), SRM, QMS, and SCADA. This has established three unified frameworks: business-finance collaboration, production synchronization, and supply chain coordination. Combined with three intelligentcornerstones—the Internet of Things platform, visual platform, and data platform—the Group enables multi-terminalapplications, delivering a robust digital foundation for sustainable development.

Topic

Digital Intelligence System

Data Platform

IoT PlatformVisual Platform

Office Collaboration

Terminal

ProductionManufacturing TerminalSafety MonitoringTerminalStorage & Transportation

TerminalSales & Service Terminal

Data Analysis &Maintenance Terminal

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportDigital Intelligence Empowerment: Unlocking New Code to Sustainable Development

/ 24 // 25 /

Rights & Duties,Building GovernanceFoundations

Sound corporate governance serves as both a fundamental requirement for driving andimplementing corporate strategies while advancing sustainable development, and acornerstone for enhancing organizational resilience and safeguarding investor rights. TheGroup places high priority on continuously refining its governance framework. By activelymitigating risks, strengthening business ethics management, and ensuring information andprivacy security, we remain committed to consistently creating value for society.

Standardizing Corporate Governance ……… 28Consolidating Risk Management

……………

32Strengthening Business Ethics ……………… 33Ensuring Information Security

…………………

During the Reporting Period

Standardizing Corporate Governance

The Group adheres to e?cient and transparent governance principles, continuously re?ning its corporate governance system inalignment with its developmental stage to ensure scienti?c and democratic decision-making. We place paramount importance onshareholder returns, enabling all investors to share in the Group's growth achievements through rational pro?t distribution andcapital appreciation strategies. Concurrently, the Group has strengthened its information disclosure mechanisms to fully safeguardinvestors' right to informed decision-making, thereby reinforcing market con?dence in the organization.

Governance Structure

The Group strictly complies with laws and regulations such as theCompany Law of the People's Republic of Chinaand theSecurities Law of the People's Republic of China, and has established a series of institutional documents such as theArticles ofAssociation of Jinhong Gas Co., Ltd., Rules for the Shareholders' Meeting of Jinhong Gas Co., Ltd., Rules of Procedure for the Boardof Directors of Jinhong Gas Co., Ltd.,andRules of Procedure for the Board of Supervisors of Jinhong Gas Co., Ltd.

The Shareholders' Meeting is the supreme authority of Jinhong Gas, composed of all its shareholders. The Shareholders' Meetingdetermines the Group's business policies and investment plans, elects and replaces directors and supervisors who are notrepresentatives of employees, decides on matters related to the compensation of directors and supervisors, and reviews andapproves reports from the Board of Directors, as well as the Group's annual ?nancial budget and ?nal accounts.

Shareholders' Meeting

The Board of Directors has established four specialized committees: the Strategy Committee, the Audit Committee, theNomination Committee, and the Remuneration & Appraisal Committee. These committees continuously improve the governancestructure, forming a governance mechanism with a clear division of responsibilities, mutual coordination, and checks andbalances, ensuring e?cient and compliant corporate governance.

Board of Directors

Shareholders' Meeting

Board of Directors

Board of Supervisors

Strategy Committee

Remuneration &Appraisal CommitteeNominationCommitteeAudit Committee

Corporate Governance Structure

Independent directors play a crucial role in providing oversight, maintaining a system of checks and balances, and o?ering professionalexpertise and advisory support to companies. The Group has established theIndependent Director System of Jinhong Gas Co., Ltd.andtheWorking Rules for Special Meetings of Independent Directors of Jinhong Gas Co., Ltd.to standardize the management mechanism forindependent directors, clarify their duties and obligations, and enhance the e?ectiveness and e?ciency of decision-making.The Group has established a diversi?ed and professional Board of Directors team can more e?ectively address the challenges of acomplex and ever-changing business environment and strongly promote the Group's sustainable development. In the nominationand appointment of directors, the Group comprehensively considers diverse factors such as professional experience, skills,knowledge, tenure of service, region, culture, educational bacKground, gender, and age to enhance the Board's sensitivity to risks.

Members of the Board of Directors in 2024

The Board of Directors, as the operational decision-making body, is responsible for the decision-making and management ofsigni?cant day-to-day matters of the Group. During the Reporting Period, the Group completed the re-election of the Board ofDirectors and the Board of Supervisors. The re-election strictly followed the relevant laws and regulations as well as the articlesof Group association. After thorough review and voting by the shareholders, the Sixth-Term Board of Directors and Boardof Supervisors were formally constituted, ensuring the effective coordination between the Board of Directors, the Board ofSupervisors and the management.

During the Reporting Period

Held a total of

Board of Directors' meetings, passed

proposals, achieved a

% attendance rateamong directors

The Strategy Committee convened

meeting, the Audit Committee convened

meetings, the Nomination Committeeconvened

meetings, and the Remuneration & Appraisal Committee convened

meeting

Convened a total of

Shareholders' Meetings, including

Annual Shareholders' Meeting and

Extraordinary Shareholders'Meetings,

proposals were considered and passed. For more information, see the website of Shanghai Stock Exchange(www.sse.com.cn)

During the Reporting Period

Junior College

and below

Male 6

Female 2

40-50(excluding 50)

Doctor 230-40(excluding 40)

Genders

Age

EducationalBacKground

50-60(excluding 60)

60 and above

Undergraduate

HarmoniousCoexistence,Greening the FutureRights & Duties,Building GovernanceFoundations

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Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

The Group attaches great importance to investor relationship management and actively safeguards the legitimate rights andinterests of investors, especially small and medium-sized investors. It has formulated theInvestor Relationship ManagementSystemand carried out investor relationship management in strict accordance with theCompany Law of the People's Republicof China,the Securities Law of the People's Republic of China, theGuidelines No. 1 of the Shanghai Stock Exchange for the Self-regulation of Listed Companies - Standardized Operationand theGuidelines for the Management of Investor Relationships ofListed Companies, as well as other relevant laws and regulations and relevant provisions in theArticles of Association, so as toensure that investors have access to the Group's public information in a fair and timely manner.During the Reporting Period, the Group actively communicated with investors through a variety of channels such as RegularReports, Earnings Presentation, On-site Investor Research, Roadshows and Sub Roadshows, Investor Hotlines, the SSE E-Interactionand other channels, responded to investor concerns, and safeguarded the investors' right to know, right to vote, and otherlegitimate rights and interests, demonstrated the Group's operating conditions to investors by compiling a visual report of theregular report (video and graphics), and pushed the latest business enquiries in time through the mediums of Jinhong Gas's o?cialwebsite's investor relationship management column, WeChat public number, and video number, so as to enrich the channels ofsmall- and medium-sized investors' access to information.

Investor Rights and InterestsThe Board of Supervisors, as the Group's decision-making oversight body, operates in strict accordance with laws and regulations,as well as the requirements of theArticles of Association of Jinhong Gas Co., Ltd., theRules of Procedure of the SupervisoryCommittee of Jinhong Gas Co., Ltd.and other institutional documents. It independently and impartially supervises the Group'sbusiness operations, fully safeguarding the legitimate rights and interests of the Group and its shareholders.

Board of Supervisors

The Group places high importance on shareholder returns. In accordancewith relevant laws and regulations as well as the profit distributionpolicies outlined in theArticles of Association, the Group formulated theJinhong Gas Co., Ltd. Shareholder Dividend Return Plan for the Next ThreeYears (2022-2024)and reviewed and approved theShareholder DividendReturn Plan for the Next Three Years (2025-2027)on March 25, 2025,subject to review by the Annual Shareholders' Meeting, further improvingand establishing a scienti?c, sustainable, and stable dividend distributionmechanism.During the Reporting Period, the Group actively responded to policyinitiatives by increasing the frequency of dividend distributions,implementing an interim dividend in September 2024, thereby signi?cantlyenhancing shareholders' sense of gain.Meanwhile, the Group has established the Market Value Management System

to further standardize its market value management practices, promotethe enhancement of the Group's investment value, and strengthen investorreturns.

Returns to Shareholders

The?rstlisted company in the gasindustry to implement an interim dividendTotal disbursed cash dividends (includingthe interim cash dividends alreadyallocated) of 2024CNY

119.67

Millionrepresenting

59.47

%

of the net pro?t attributable to shareholders oflisted companies in the year

Information Disclosure

In addition, the Group has established relevant policies such as theManagement System for Information Disclosure Matters,theManagement System for Informants of Insider Information, and the Management System for Con?dentiality of Information.These systems continuously optimize the information disclosure process to ensure the truthful, accurate, complete, and timelydisclosure of information, safeguarding the right to know and the legitimate rights and interests of every investor. Investors canaccess the Group's periodic reports and temporary announcements through the Shanghai Stock Exchange website, the Group'so?cial website,China Securities News, Securities Times, andShanghai Securities News. Beyond mandatory information disclosurerequired by laws, regulations, and regulatory authorities, the Group also proactively enhances information transparency throughvoluntary disclosures, strengthening communication and trust with stakeholders.

Held a total of

Board of Supervisors meetings, reviewed

proposals, average attendance rate of

%

Voluntarily disclosed its inaugural ESG report, the Action Plan for Enhancing Quality, E?ciency, and Returns, and the Semi-Annual Assessment Report on the Action Plan For Enhancing Quality, E?ciency, and Returns,Disclosed

periodic reports and

temporary announcements through multiple channels, e?ectivelyexecuting and maintaining the responsibility mechanism for information disclosure.

Key Performance

Investor Exchanges

times, Investor Exchanges

1,045

participantsSSE E-Interaction response times

, SSE E-Interaction response rate

%

During the Reporting Period

During the Reporting Period

Key Performance20222023Half year 20242024 (Proposed)Cash dividend per share (yuan)0.250.350.150.10Total cash dividend (Million yuan)120.30168.1771.9447.73Percentage of net pro?t attributable toshareholders of listed companies in theconsolidated ?nanciastatements (%)

52.5053.3959.47

HarmoniousCoexistence,Greening the FutureRights & Duties,Building GovernanceFoundations

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Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

Consolidating Risk ManagementGuided by its value philosophy of risk prevention and prudent operations, the Group implements a systematic complianceframework that aligns every business activity with legal mandates and sector-speci?c norms to proactively avoid potential risks.The Group Gas has formulated systems such as theRules of Procedure for the Audit Committee of the Board of Directors,theInternal Audit Charter,and theJinhong Gas Internal Audit Rectification Management System, building a forward-lookingand proactive internal control management system. The Group has established an internal control management frameworkindependent of business departments and continues to strengthen the "three lines of defense" in risk management.

The Group conducts regular internal audits to ensure objectivity and accuracy in identifying major risks by personnel at all levels.Through measures including clarifying accountability, formulating targeted response strategies, enhancing risk alert mechanisms,and conducting annual e?ectiveness evaluations, we continuously strengthen our internal control framework. Simultaneously,the Group implements comprehensive risk management across all phases - preventive measures, real-time monitoring duringoperations, and post-incident contingency protocols - while periodically reviewing the effectiveness of risk assessments andmitigation plans. This systematic approach addresses implementation gaps and ensures full execution of countermeasuresthroughout the organization.During the Reporting Period, Jinhong Gas conducted self-evaluations and annual internal control audits on the effectivenessof internal controls within the Group, its wholly-owned subsidiaries, and its controlled subsidiaries. Throughout the year, nosigni?cant de?ciencies were identi?ed in the design and execution of the Group's internal controls. In terms of internal auditing,the Group carried out 43 routine audits, 2 departure audits, and 6 special investigations.

Strengthening Business EthicsA fair business environment serves as a critical foundation for the sustainable development of enterprises and re?ects the expectationsand requirements of stakeholders towards corporate entities. By adhering to high standards of business conduct, the Groupfosters a more equitable and transparent commercial ecosystem, thereby propelling the vigorous growth of the industry economy.

Business Ethics and Anti-Corruption

Three Lines of Defense in Risk Management

First line of defenseSecond line of defense

Third line ofdefense

Each core business department regularly reviews risk focus points and integratesthem into daily risk controlEach functional management department assists and supervises the implementation

of risk management systems by various departmentsThe Audit Committee, established under the Board of Directors, comprehensivelycoordinates management across various risk areasThe Audit Department, established under the Audit Committee, serves as the

permanent internal audit body. It is responsible for examining and evaluating

the integrity, rationality, and e?ectiveness of the implementation of economic

responsibility and internal control systems, and regularly reports to the Audit

Committee and the Board of Directors

During the Reporting Period

incidents of violations of business ethics or anti-corruption

The Group strictly complies with Chinese anti-corruption laws and regulations, theUnited Nations Convention against Corruption,and the applicable anti-corruption and anti-bribery laws and regulations of the countries (regions) in which it operates. Inaccordance with the Group's and its business partners' regulations and commitments to integrity and anti-corruption, itcontinuously strengthens the development of a culture of integrity.The Group adheres to a "zero-tolerance" stance towards corrupt practices and has established internal guidelines such as the

Anti-Fraud Management Systemand theIntegrity and Self-Discipline Convention, which cover all employees of the Group and itssubsidiaries. These guidelines provide more comprehensive behavioral standards and guidance for the control of business ethics.

HarmoniousCoexistence,Greening the FutureRights & Duties,Building GovernanceFoundations

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Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

Responsible for establishing a Group-wide anti-fraud and anti-corruption cultural environment, and for

building and improving an internal control system that includes fraud prevention, whistleblowing acceptance,and investigation handling;Accountable for the occurrence of fraudulent activities and responsible for coordinating and guidingcross-departmental anti-fraud e?orts within the Group.

Responsible for guiding anti-corruption and anti-fraud e?orts and providing ongoing supervision ofrelated work.

The Group's standing body for anti-corruption and anti-fraud e?orts, assisting management in

establishing and improving anti-corruption and anti-fraud mechanisms; Responsible for conducting anti-fraud prevention and awareness activities;Responsible for receiving complaints and reports of fraud incidents, and providing responses and

follow-ups;Responsible for forming anti-fraud investigation teams, organizing internal anti-fraud investigations,

producing reports, and reporting results to the General Manager or Chairman.

AuditCommittee ofthe Board

GroupManagement

AuditDepartment

The heads of each business unit,

department, and subsidiaryare the primary responsiblepersons and contacts foranti-fraud e?orts within theirrespective departments, taskedwith carrying out internal anti-fraud activities.Responsible for carrying out

relevant prevention campaignswithin the department.

Responsible for transferring

cases that meet the ?lingcriteria to judicial authorities.Represent the Group in

initiating legal proceedingsagainst individuals involvedin the case.

Responsible for promptly

transferring any corruption orfraud clues discovered during?nancial managementactivities to the AuditDepartment.Responsible for freezing

all payment obligations ofthe individuals involved inthe case before the case isconcluded.Assist in recovering

economic compensationfor the case.

Organize new employees to

sign theIntegrity and Self-Discipline Conventionandprovide them with businessethics-related training.Responsible for imposing

disciplinary actions on allindividuals involved in thecase.Handle the labor relations,

compensation, and remunerationof individuals involved infraudulent activities.

The heads of each

business unit,department, and

subsidiary

LegalDepartment

FinanceDepartment

HumanResourcesDepartment

Whistleblower Protection

The Group encourages employees to mutually supervise and report any violations of rules or disciplinary misconduct and hasclearly de?ned the anti-fraud reporting management process and reward mechanism in theAnti-Fraud Management System. TheGroup has established a position segregation mechanism to ensure the objectivity and compliance of business decision-making.For all reported matters, the Group forms a dedicated anti-fraud investigation team to conduct in-depth investigations.

Business Ethics and Anti-Corruption Training

To comprehensively cultivate employees' business ethics andcompliance awareness, the Group communicates integrityrequirements to all employees through methods such asemployee handbooks, anti-corruption training, posting anti-fraud policy boards, institutional measures, and issuing OAannouncements. The management demonstrates leadershipby, adhering to the Group's systems and norms throughpractical actions. For new employees, the Group conductsanti-fraud training and education on laws, regulations,integrity, and ethics, effectively strengthening theirawareness of integrity.

Employee Anti-Corruption Training

?

?

The Group has established a well-defined organizational structure for business ethics and anti-corruption efforts. It hasformed an anti-corruption management mechanism led by the General Manager, with collaboration among various businessunits/departments/subsidiaries, the Legal Department, the Finance Department, the Human Resources Department, and theAudit Department. The Group's Audit Department is responsible for following up on investigations into business ethics issuesand reporting to the Board Audit Committee, creating a coordinated management framework that further enhances the levelof anti-corruption management.

Key Performance

Coverage rate of anti-corruption training for employees reached

%

HarmoniousCoexistence,Greening the FutureRights & Duties,Building GovernanceFoundations

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Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 01 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 01 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 01 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 01 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 01 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0

Ensuring Information SecurityThe Group consistently adheres to the legal boundaries and ethical imperatives of information security and privacy protection.It strictly complies with laws and regulations related to information security and privacy protection, such as thePersonalInformation Protection Law of the People's Republic of Chinaand theCybersecurity Law of the People's Republic of China.TheGroup has established internal systems, including theInformation Con?dentiality System, to continuously re?ne its informationsecurity management framework and clarify the responsibilities and obligations of the information security team in handlingpersonal information.On this basis, the Group has established an Information System Emergency Response Leading Group responsible for overseeingthe operation of the information security management system, ensuring the e?ectiveness and executability of the emergencymanagement system. The Group formulates and optimizes information security emergency response mechanisms and plans,clarifying emergency response procedures and measures to reduce the risk of major cybersecurity incidents.Meanwhile, theGroup regularly conducts data security awareness campaigns and training aimed at enhancing all employees' understanding andawareness of information security.

Data and Information Security Awareness and TrainingThe Group has established a systematic data and information security training system to enhance employees' securityawareness and operational compliance at di?erent levels. Focusing on o?ce scenarios, the Group conducts specializedtraining ranging from basic operations to core business processes, standardizing OA process permissions, email usagestandards, and document circulation security requirements. Additionally, through password management, terminalsecurity operation guidelines, and interpretation of information security policies, the Group has created a comprehensiveinformation security protection network that combines institutional constraints with technical safeguards.

Anti-Unfair Competition

Whistleblower

Protection

Acceptance of the report or participate in the investigation of personnel to strictly protect the relevantinformation of the whistleblower, the speci?c content of the report, the relevant investigations are carriedout without revealing the identity of the whistleblower. Unless the whistleblower agrees, in any case, notto disclose the whistleblower's name, contact details and other information.

Any department, employee, or business partner who becomes aware of any actual or suspected violations ofthe Group's compliance policies, applicable laws and regulations, or other requirements—regardless of theseverity of the situation—may consult with or submit reports to the Audit Department under their real names,or utilize the following channels for reporting：

Reporting Channel

Report Tel：0512-65767715-8110/8106Report Email：17798596707@163.com

During the Reporting Period

data

leakage or privacy protection incidents occurredThe Group is committed to building a fair and just corporate environment. In its future business development, the Group willcontinue to strictly abide by the relevant laws and regulations and follow the provisions of the competition law, to ensure faircompetition in the market and guaranteeing that all market participants enjoy equal opportunities.

During the Reporting Period

Not involvedin any legal proceedings related to anti-unfair competition, antitrust, or anti-monopoly

Any unit or individual shall not use any excuse to block, suppress the whistleblowers report, shall not takeany way to retaliate against whistleblowers. Individuals who engage in retaliation against whistleblowerswill be subject to serious disciplinary action in accordance with the Group's relevant regulations oncethe facts are verified. Those who violate the law will be transferred to the judicial authorities for legalprocessing.

For violation of con?dentiality or improper performance of duties of the sta?, according to the situationand the consequences of serious treatment. Constitutes an o?ence, transferred to the judicial authorities.

HarmoniousCoexistence,Greening the FutureRights & Duties,Building GovernanceFoundations

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Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

Harmonious Coexistence,Greening the Future

As an enterprise dedicated to advancing sustainable development, the Group continuesto seek the effective measures of implementing carbon neutrality. Through continuousinnovation, optimization of production processes, enhanced resource utilization, andreduced energy consumption, the Group remains committed to collaborating with partnersto co-create a green and sustainable future.

Addressing Climate Change ………………… 40Implementing Environmental Management

…

43Enhancing Resource Utilization ……………… 45Ensuring Compliant Emission

…………………

48Protecting Ecosystem

…………………………

The Group has conducted a comprehensive analysis and evaluation of climate change impacts, assessing both the potentiale?ects and their magnitude through the dual lenses of physical and transition risks, leading to the formulation of targeted climaterisk mitigation measures.

Risk TypeRisk Description and ImpactMeasures

Physical

Risks

Acute Risks

Natural disasters (such as typhoonsand ?oods) may lead to asset lossesand equipment damage, a?ect thestability of production and operations,and increase operating costs

An emergency command team was set up toorganize and coordinate the response accordingly

Carry out meteorological early warning and timelynoti?cation

Formulate emergency plans and clarify theresponsibilities of various departments andpersonnel

When encountering extreme weather, stopdangerous operations in time to ensure personnelsafety

Carry out routine inspections of site andlaboratory equipment, and check and cleandrainage systems regularly

ChronicRisks

Extreme weather caused by long-termclimate change, could threaten thesafety and health of employees andlead to reduced operational e?ciency

Transition

Risks

Market

Risks

Changes in the supply and demand forgoods and services triggered by thetransition to a low-carbon economycould put pressure on companies'operations

Optimize supply chain risk management ability toenhance supply chain resilience

Collect and analyze the global market information,accurately grasp the market dynamics

Policy andLegal Risks

With the continuous improvementof domestic regulations andsystems related to carbon emissionsand carbon trading, companieswould assume more stringentresponsibilities in terms of emissionreduction measures and carbonemission information disclosure

Track and gain insight into the latest climate laws,regulations and policies to ensure responding in atimely manner

Actively explore emission reduction measuresto help the Group, upstream and downstreamenterprises to reduce emissions and promote theconstruction of a green value chain

Addressing Climate ChangeClimate change stands as one of the most pressing global priorities today. The Group has always maintained a high sense ofresponsibility and strives to mitigate the impact of climate change by reducing greenhouse gas emissions, promoting cleanenergy and improving energy e?ciency. The Group attaches great importance to climate governance and continues to improvethe climate risk response system. All departments work closely together to identify climate change-related risks and develop andimplement risk mitigation and adaptation strategies, ensuring the Group's sustainable development.

Risk Identi?cation and Response

Risk TypeRisk Description and ImpactMeasures

Transition

Risks

ReputationRisks

If the Group's performance on climateaction is perceived by stakeholders,including clients, employees,investors and shareholders, it maya?ect the market reputation of theGroup

Strictly abide by the regulations and requirementson enhancing climate information disclosure

Actively communicate with various stakeholders

TechnologyRisks

The low-carbon transition isaccelerating the development andapplication of clean technologies,which may bring potentialtechnological pressure

Keep increasing research and developmentinvestment on sustainable development productsand technology

Keep promoting the Carbon Capture, Utilization,and Storage projects of the Group to reducegreenhouse gas emissions

As a comprehensive gas service provider o?ering one-stop gas supply solutions for specialty gases, bulk gases, and fuel gases to clients,the Group is guided by China's Dual Carbon Strategy, utilizing innovative technologies to reduce greenhouse gas emission of the Groupcontinuously.

Risk and Opportunity Management

Carbon Capture,

Utilization,and StorageTechnologyContinuously promoting in-vestment and developmentin carbon capture and utiliza-tion projects

Direct Emission

ReductionMeasures

Reducing direct greenhousegas emissions in productionprocesses and the industrialchain through technologicalinnovation

Monitoring

EmissionReduction PoliciesClosely monitoring the latestrelevant laws and regula-tions, and actively adoptingenergy-saving measures tomeet the requirements of en-ergy conservation, emissionreduction, and green trans-formation policies

RenewableElectricity

Photovoltaic power stationshave been successfully con-nected to the grid, and con-tinued efforts are made touse them to reduce indirectgreenhouse gas emissionsfrom purchased electricity

/ 40 // 41 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the FutureJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Implementing Environmental Management

The Group strictly adheres to relevant environmental management laws, regulations, and provisions such as theEnvironmentalProtection Law of the People's Republic of Chinaand theEnergy Conservation Law of the People's Republic of China, and upholds theoverall policy of "Safety ?rst, Prevention foremost; Improving the environment, Protecting health. Comprehensive management,continuous improvement. Abiding by regulations, promoting comprehensively", the Group promotes the e?cient and compliantenvironmental management continuously.

Environmental Management System

The Group vigorously promotes the application of carbon capture utilization technology. During the Reporting Period, carbon captureprojects helped clients reduce greenhouse gas emissions by a cumulative total of 304,441 tons. Both the Jiaxing Jinhong CarbonCapture Construction Project and the Huainan Jinhong Carbon Capture and Utilization Project achieved remarkable results, facilitatingcollaborative development among the Group's upstream and downstream enterprises.

Emission Reduction and Carbon Mitigation – Jiaxing Jinhong Carbon CaptureConstruction Project

Synergistic Enhancement – Huainan Jinhong Carbon Capture and Utilization Project

The Jiaxing Jinhong Carbon Capture Construction Projectcompleted the acceptance in January 2024 and obtainedthe relevant production qualifications and was selectedas one of the "Third Batch of Pilot Projects for SynergisticEmission Reduction and Carbon Mitigation in ZhejiangProvince", "Second Batch of Benchmark Projects forEmission Reduction and Carbon Mitigation in ZhejiangProvince" and was honored with the title of "2023 GreenDemonstration and Leading Enterprise".The projectcontributes to reducing carbon dioxide emissions duringindustrial production processes while achieving resourcerecycling and improving resource utilization efficiency.It has established a circular and low-carbon economicindustrial chain. As a benchmark project, it provides technicaldemonstration and promotion, driving collaborativedevelopment among upstream and downstream industries.

The Huainan Jinhong Carbon Capture and UtilizationProject entered the trial production phase in July 2024,providing an innovative demonstration for the full-processdevelopment of CCUS. It actively promotes the extensionof the carbon industry chain, forming an industrial clusterlinked by the chain. This project offers a highly effectivesolution for achieving a win-win situation in terms ofenergy conservation, emission reduction, cost reduction,e?ciency improvement, and economic bene?ts.GHG Emission

1,2

Unit2024GHG Emission Intensity (Scope 1)tCO

e /CNY Million5.75GHG Emission Intensity (Scope 2)tCO

e /CNY Million40.39GHG Emission Intensity (Scope 1 and Scope 2)tCO

e /CNY Million46.14Carbon Reduction from Renewable EnergytCO

e329.95

References: 2006IPCC Guidelines for National Greenhouse Gas Inventories, Guidelines for Provincial Greenhouse Gas Inventories (Interim), 2022 CO

Emission Factors for the Electricity Sector, China Greenhouse Gas Inventory Study (2005)

GHG Emission Intensity = GHG Emissions / Annual Revenue

Emission intensity in 2024 is higher than last year due to the completion and commissioning of new projects.

Achieved

Compliant disposal of solid wastes

%

Chemical spills incidents

Fire and explosion incidents

Compliance of wastewater, air, dustand noise emissions

%

ISO 14001 Environmental

Management System Certi?cate

/ 42 // 43 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the FutureJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

The Group emphasizes low-carbon operations and continuouslyimproves the energy management system with the energy policyof "Consuming Less and Producing More E?ciently, ConservingEnergy and Reducing Emissions, Striving for Profitability,Operating in Compliance, Innovating Technologically, PursuingExcellence." The Group focuses on building a system to enhanceproduction energy e?ciency, accelerating the transformation ofthe factory's energy structure through process innovation andreengineering, systematically reducing energy consumptionintensity throughout the entire production cycle, and achievingcontinuous optimization of energy utilization e?ciency.The Group has formulated theEnergy Management SystemManual, which clari?es key elements such as energy managementobjectives, organizational structure, responsibility allocation,and specific implementation steps, to ensure the scientific,reasonable, and sustainable use of energy and continuouslyimprove energy management effectiveness. The Group hasobtained ISO 50001 Energy Management System certi?cate.

Enhancing Resource Utilization

Energy Management

ISO 50001 Energy Management System Certi?cate

Energy Saving Initiatives

The Group continuously optimizes documents such asRisk and Opportunity Identification and Assessment ManagementProcedureandEmergency Preparedness and Response Control Procedureto identify and evaluate various environmental aspectsin production and operation activities on a regular basis and take corresponding countermeasures accordingly. The Groupregularly conducts hidden danger investigation and actively conducts self-inspection and self-correction.

Environmental Risk Management

In terms of environmental risk management initiatives, the Group adheres to the concept of green development, deepens sourceprevention and control and comprehensive treatment, builds a long-term management mechanism, ensures the implementation ofenvironmental risk control through diversi?ed measures. The Group has strengthened the soil pollution prevention mechanism andsystematically implemented the soil environmental protection program. The Group entrusted a professionally quali?ed third-partyinstitution to carry out comprehensive soil testing in the production, transportation and storage areas of the enterprise. The resultindicated that the soil quality of each was in line with the standard. The Group will continue to adhere to closed-loop environmentalmanagement, constantly strengthen the construction of environmental management system, and lay a solid foundation forsustainable development.

Environmental Risk Management Initiatives

To further enhance employees' environmental awareness and operational capabilities, during the Reporting Period, the Groupconducted training sessions on environmental risk management (hazard sources) risk identification and assessment, solidwaste safety and control, environmental emergency management, and other topics through multiple approaches, reinforcingemployees' environmental awareness.

Environmental Awareness Training for Employees

Air conditioning energysaving control

Utilization of renewable

resources

Photovoltaicpower generation

Energy saving in

lighting

Water reusingEmployee energyconservationawareness training

Posting of energy-saving

signs

Energy data collectionand analysis

Waste heat recoveryand utilization

Promoting paperless o?ceEnergy saving

transformation ofequipment

Utilization ofinsulation materials

/ 44 // 45 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the FutureJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

The Group strictly complies with laws and regulations includingthe Environmental Protection Law of the People's Republicof China, the Water Law of the People's Republic of China, andthe Water Pollution Prevention and Control Law of the People'sRepublic of China. The Group continuously optimize water resource management systems across all production bases. AThree-tier Water Conservation Management Systemhas been established to systematically assign specific water conservation tasksto relevant departments, personnel, and positions, enhancing water-saving awareness among all employees and progressivelyimproving water risk management capabilities.

The Group conducts regular water audits, focusing on reviewing water management practices, metering and statistical accuracy,process water analysis, and system water usage analysis. In process optimization, steam condensate generated during productionis collected, puri?ed, and reused, achieving an annual reuse rate of approximately 90%. Additionally, the Group has implementeda series of water conservation systems, includingthe Water Conservation Management Regulations and Water Conservation StatisticsandAnalysis System, strictly adhering to local government water usage regulations.

Water Resource Management

The Group actively fosters an atmosphere of green o?ce practices, systematically promoting the implementation of low-carbonoffice concepts through multiple dimensions, including energy-saving behavior management, operation management of airconditioning equipment, and the promotion of paperless o?ce work.

Green O?ce

The Group prioritizes the reuse of gas packaging materials. For reusable packaging, it conducts inspection, maintenance, cleaning,and testing before reintroducing them into circulation to minimize waste. Non-reusable packaging is safely disposed of or recycledthrough certi?ed professional agencies.Packaging Recycling not only maximizes material value and reduces operational costs, but also contributes actively toenvironmental protection, demonstrating the Group's ?rm commitment and tangible actions toward sustainable development.

Packaging Recycling

Energy Structure Optimization

During the Reporting Period, the Group systematically advances the energy e?ciency upgrade of the production systemand the optimization of the energy structure. In terms of equipment energy efficiency improvement, energy-savingtechnology transformation of key energy-consuming processes has been implemented, and traditional high-energyequipment has been gradually replaced with first-class energy efficiency motors, significantly reducing the powerloss of equipment operation. In terms of energy supply, the construction of distributed photovoltaic power stationswas completed in 2023, and grid-connected operation was achieved. During the Reporting Period, the Group's totalphotovoltaic power generation reached 563,445 kWh.

Energy Consumptions

Unit2024

Comprehensive Consumption IntensityTons of standard coal/CNY Million11.11LNG Consumption IntensityTons/CNY Million0.01Gasoline Consumption IntensityTons/CNY Million0.04Diesel Consumption IntensityTons/CNY Million1.79Consumption Intensity of Purchased ElectricitykWh/CNY Million68,635.31Consumption Intensity of Purchased HeatGJ/CNY Million1.84

Reference:

GB/T 2589-2020 General Principles of Comprehensive Energy Consumption Calculation

Energy Consumption Intensity = Energy Consumption / Annual Revenue.

Water Intensity = Water Consumption / Annual Revenue

During the Reporting Period

Water intensity

1,512.83 tons/CNY Million

/ 46 // 47 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the FutureJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

The Group prioritizes environmental protection and air quality from the source of manufacturing processes. Throughout thedesign and construction phases, the Group strictly adheres to national and industry-speci?c engineering design standards. Toensure e?ective treatment and compliant emissions of waste gases, the Group has equipped waste gas collection systems andemploys advanced waste gas collection technologies, making proactive contributions to environmental protection and air qualityimprovement.

Ensuring Compliant Emission

Waste Gas Management

The Group strictly complies with a series of environmental pollution management regulations, including theEnvironmentalProtection Law of the People's Republic of China, theAir Pollution Prevention and Control Law of the People's Republic of China,theWater Pollution Prevention and Control Law of the People's Republic of China, and theSolid Waste Pollution EnvironmentalPrevention and Control Law of the People's Republic of China. The Group has established theEnvironmental ProtectionManagement Systemto rigorously control emissions of air pollutants, wastewater, and solid waste. While ensuring full compliancewith regulatory requirements, the Group actively implements management measures, continuously minimizing potentialenvironmental impacts.

Emissions of Exhaust Gas Pollutants

Unit2024Exhaust Emission IntensityMillion m

/CNY Million0.05Particulate Emission IntensityKg/CNY Million0.30SO

Emission IntensityKg/CNY Million0.43NOx Emission IntensityKg/CNY Million0.57VOC Emission IntensityKg/CNY Million0.40

The Group implements systematic wastewater monitoring and management during production, coupled with water recyclinginitiatives, to reduce reliance on freshwater resources. These e?orts contribute robust corporate action to ecological conservation,showcasing the Group's resolute commitment to sustainable development.

Wastewater Management

Wastewater Emission

Unit2024Wastewater Emission IntensityTons/CNY Million23.83Wastewater Recycling Rate%12.46

Emission Intensity = Emission / Annual Revenue.

Wastewater Emission Intensity = Wastewater Emissions / Annual Revenue.

Wastewater Treatment Initiatives

ProcessingFacility

Whole ProcessMonitoring

SourceManagement

The Group has installed advanced wastewater treatment facilities to ensure that allwastewater is properly treated before discharge. These facilities use a combinationof physical, chemical and biological treatment methods to ensure achievingdischarge standards.

The Group continuously monitors the concentration of wastewater through asound monitoring system, including but not limited to chemical oxygen demand,?ve-day biochemical oxygen demand, total phosphorus, total nitrogen and otherdimensions.

By optimizing production processes and adopting cleanerproduction technologies,the Group strives to reduce water consumption and reduce wastewater generation.

/ 48 // 49 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the FutureJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

The Group strictly complies with national and local regulations and standards, including thePollution Control Standards for Storageand Landfill of General Industrial Solid Wasteand thePollution Control Standards for Hazardous Waste Storage, establishing acomprehensive waste management system and collaborates with licensed third-party agencies for the safe and e?ective disposal of waste.To ensure effective implementation of waste management measures, the Group has established a robust monitoring and inspectionmechanism, regularly organizes cross-departmental oversight to comprehensively review waste classification, storage, and disposalprocesses.

Waste Management

Waste Management Indicators

Unit2024

Non-hazardous Industrial Solid WasteCompliant disposal rate of non-hazardous industrial solid waste%100Intensity of non-hazardous industrial solid wasteTons/CNY Million0.001Hazardous Industrial Solid WasteCompliant disposal rate of hazardous solid waste%100Intensity of hazardous solid wasteTons/CNY Million0.013

The Group integrates noise control as a key focus in production management, establishing a full-process noise reduction systemencompassing source control, pathway interception, and end-of-pipe treatment. The Group prioritizes low-noise, high-e?ciencyequipment, optimizes equipment layouts, and installs vibration dampers to reduce mechanical noise at the source. Meanwhile,the Group implements targeted measures to block noise transmission pathways, including establishing soundproof monitoringrooms, installing acoustic enclosures for high-noise equipment, applying acoustic absorption treatments in areas with strongreverberation, equipping silencers at noise sources or transmission pathways, and implementing vibration isolation measuresfor machinery. These actions comprehensively reduce noise levels during production, achieving dual bene?ts of workplace noisereduction for employees and community noise pollution prevention.

Noise Management

Waste Intensity = Waste Generation / Annual Revenue

Protecting EcosystemThe Group strictly observes national environmental laws andstandards to protect the environment and prevent damageto marine and terrestrial ecosystems. The Group ensures thatall capital investment projects take measures to minimizenegative impacts on the environment, and it pays attentionto the protection of the ecosystem while rationally utilizingnatural resources.

Clarify the main responsibilityof waste management andimplement the responsibilityto the speci?c responsibleperson.

Strengthen the managementof the whole process of wasterecycling.

Establish a garbage sortingmanagement system, providesorting and collection facilitiesand services, and encourageemployees to participate actively. Waste Management Initiatives

During the Reporting PeriodThe Groupdid nothave any production bases oroperations located within, near or outside naturereserves in areas rich in biodiversity

None

of our production and operation activities,products and services had a significant impact onbiodiversity

/ 50 // 51 /

Rights & Duties,Building GovernanceFoundations

Innovative Technology,Driving High-QualityDevelopment

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-beingHarmoniousCoexistence,Greening the Future

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopment

The Group sustains innovation through rigorous quality control, delivering premiumproducts and tailored solutions while committing to exceptional service experiences thatultimately generate amplified stakeholder value.

Optimizing Innovation System ………………… 54Respecting Intellectual Property Rights

……

57Adhering to Product Quality ………………… 58Focusing on Intelligent Manufacturing

……

61Prioritizing Safe Production

……………………

61Delivering High-Quality Services

……………

Optimizing Innovation System

Sustainable R&D innovation is a critical pillar for stable growth. The Group has established a series of R&D managementsystems, including theDesign and Development Control Procedures , Technology R&D Center Process Package DevelopmentImplementation Rules, Technology R&D Center Small-scale Trial Acceptance Management System,andTechnology R&D CenterPilot-scale Trial Acceptance Management System.Additionally, the Group has developed a comprehensive R&D managementframework to achieve e?cient innovation governance and drive continuous organizational advancement.

Innovation Governance

Guided by the philosophy of "anchoring development in vertical and horizontal development strategy to strengthen team cohesion andcollaboration, while prioritizing new technologies and products to accelerate progress and innovation for sustained corporate growth,"the Group remains committed to technological breakthroughs and product re?nement, aiming to elevate core competitiveness andmeet the escalating demands of the market.The Group has de?ned R&D innovation objectives centered on "enhancing technological R&D capabilities, strengthening innovationmanagement, continuously developing new products, and boosting product competitiveness." A robust product design and R&Dprocess ensures that every innovation precisely aligns with market needs, propelling the Group's progressive evolution.

Innovation Strategy

To ensure sustained and stable technological innovation, the Group continuously enhances the R&D capabilities and promotesthe innovation capacity of internal research teams through a series of incentive mechanisms. The Group has establishedcorresponding incentive criteria and processes for new product development, fundamental research, engineering projects, andtechnical improvement initiatives. These measures aim to stimulate employees' innovative drive, strengthen technical expertise,accelerate the transformation and application of scienti?c achievements, and maintain the Group's technological leadership inthe gas industry, thereby delivering higher-quality and more e?cient products and services to clients.

Innovative Development

Group R&D Process

Project InitiationPhase

Small-scaleTrial Phase

Trial Production

Phase

ContinuousImprovementPilot-scale Trial

Phase

Postdoctoral Research WorkstationThe Group actively engages in university-industry collaboration. In 2018, a National Postdoctoral Program was approvedand has recruited a total of four postdoctoral researchers since its establishment. The Group has undertaken collaborativeresearch initiatives with leading academic institutions including Nanjing University, Soochow University, Nanjing TechUniversity, and Nanjing University of Aeronautics and Astronautics, including R&D of key materials for ultra-high-purity gasterminal puri?ers, Research on ultra-high-purity gas puri?cation materials, Preparation of Transition Metal Sulphide BasedElectrodeandPhotoelectrochemical Water Decomposition Performance and Puri?cation process research with pilot-scaleampli?cation of tetramethylsilane.Currently, the Programme focuses on the Preparation of Transition Metal Sulphide Based Electrode and Photoelectroche-mical Water Decomposition Performance project. Photoelectrocatalytic water decomposition, as a clean and sustainablehydrogen production method, holds signi?cant potential for addressing energy crises and environmental pollution. Theresearch aims to enhance the efficiency and cost-effectiveness of this technology, accelerating the adoption of cleanenergy and contributing to carbon neutrality goals.

/ 54 // 55 /

Innovative Technology,Driving High-QualityDevelopment

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

The 5th Semiconductor Wet ElectronicChemicals and Electronic Gases Forum

The Third Huainan Transformation and

Development Conference - New Material IndustryMatchmaking MeetingHydrogen Fuel Cell Technology Innovation

and Application Conference

2024 International Scientists Roundtable inSuzhou2024 Workshop on Fluorinated Materialsfor Semiconductor Processes

2024 Jiangsu Nanjing Industry-University-

Research Cooperation Conference "Jinshan Forum" Exchange Meeting

Advanced Electronic Materials Industry

Development (Chuzhou) Conference

Respecting Intellectual Property Rights

The Group has passed the intellectual property management system certi?cate and won the honorary title of National IntellectualProperty Demonstration Enterprise.

The Group carries out several intellectual property trainings in the form of online and offline integration annually for patentmining, information management system, trademark use, and other dimensions. During the Reporting Period, the Groupconducted a total of 5 intellectual property training sessions.

The Group constantly improves the intellectual property management system, strictly abides by thePatent Law of the People'sRepublic of China, theTrademark Law of the People's Republic of Chinaand other laws and regulations and has formulated aseries of systems such as thePatent Administration Procedure,Intellectual Property Risk Management Procedure, andTrademarkAdministration Procedure to ensure the comprehensive and e?ective protection of the Group's intellectual property rights.

National Intellectual Property Demonstration

EnterpriseIntellectual Property Management System Certi?cate

During the Reporting Period

By the end of the Reporting Period

new patent applications, including

invention patents and

utility model patents

Held

trademarks, “金宏气体 JINHONG GAS及图” trademark is protected in Singapore, South Korea, Japan,Vietnam, and Malaysia, as well as 27 member states of European Union through trademark registration

China Patent Protection Association announced the list of patent-intensive products in 2024, and

products wereselected, ranking ?rst

in Suzhou

patents were newly authorized, including

invention patents

Key Performance

Jinhong Gas 2024 Academic Yearbook

Besides, the Group actively participated in external academic seminars and exchanges, opened up technical vision, understandindustry technology development trends in-depths. During the reporting period, the company participated in a series of meetingsincluding theReview Meeting of the China Industrial Gas Industry Association, the2024 International Scientists RoundtableinSuzhou, and theJinshan Forumexchange meeting, exchanging views with experts from various industries, helping the Group tounderstand the development trend of the industry and continuously improve its research and development capabilities.

R&D personnel, including

doctors and

masters, R&D investment CNY

100.78

million, increasedby

16.78

% year on year, R&D investment as a percentage of revenue

3.99

%

/ 56 // 57 /

Innovative Technology,Driving High-QualityDevelopmentJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,

Co-advancing Collective

Well-being

Adhering to Product Quality

The Group has always adhered to the "Standardized Management, Quality First; Client First, Continuous Improvement "qualitypolicy, established a complete system, standardized and orderly management system. The Group continues to deepen theconstruction of quality management system, formulates theQuality and Food Safety Management Manualcovering all employeesaccording to ISO 9001 and ISO 22000 standards, mandating that the Quality Director serves as the Quality Head, ensuring top-down integration of quality management across all operational processes. Furthermore, over 70 quality management systemshave been established, targeting specific products, equipment, and production processes. These include theMonitoring andMeasurement Control Procedures,Business Continuity Management (BCM) Program, andCorrective and Preventive ActionsProcedures, which clearly de?ne quality requirements for product manufacturing and reception criteria for critical processes.

Quality Management and Strategy

Quality Management

System Certi?cate

Food Safety Management

System Certi?cate

CNAS Laboratory

Accreditation Certi?cate

To enhance quality management capabilities and strengthen the enterprise internal quality risk identi?cation skills, the Grouphas established a comprehensive full lifecycle quality management system, enabling managing risk points and improve qualitymanagement capabilities.

Quality Risk Management and Response Measures

The Group has customized a QMS, covering full-process traceability from raw material inbound to ?nished product analysis, ensuringquality stability throughout the production process. Additionally, the system is integrated with the outbound systems, allowing forprecise traceability of outbound product information, making quality control more accurate and orderly.

Statistical Process Control

SPC

TrainingDuring the Reporting Period, SPC training was conductedfor employees in the quality and production departments,emphasizing the principle of precautionary that "IdentifyingAbnormal Causes, Taking Measures, Ensuring Elimination,Preventing Recurrence, and Incorporating into Standards."The training was comprehensive yet accessible, comple-mented by post-training tests, further enhancing the overallSPC operational capabilities of the participants.

ProductR&D

ServiceImprovementPurchaseControl

Manufacturing

LogisticsDelivery Full Life Cycle Quality Management System

To further enhance the awareness of quality risks among all employees and elevate the level of quality management, the Grouphas conducted a series of quality-related training activities. Through systematic knowledge dissemination and practical skilldevelopment, employees are ensured to master core competencies in quality management, enabling them to better implementquality standards in daily operations. This collaborative effort drives continuous improvement in the quality of the Group'sproducts and services.

Quality Culture Development

The Group has passed the ISO 9001quality management system certi?cateand ISO 22000 food safety managementsystem certi?cate.

The Group has established a management system compliant withISO/IEC 17025:2017General Requirements for the Competence of Testingand Calibration Laboratoriesand obtained the Laboratory AccreditationCerti?cate issued by the China National Accreditation Service forConformity Assessment (CNAS), ensuring the impartiality, accuracy andreliability of laboratory testing activities.

/ 58 // 59 /

Innovative Technology,Driving High-QualityDevelopmentJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

The Group has established product recall related management systems to enhance emergency response capabilities forproduct safety incidents and improve relevant work management standards. A comprehensive product recall process has beenimplemented to ensure that, upon identifying potential safety hazards, swift and e?ective measures can be taken to recall relatedproducts promptly, safeguarding client interests and safety.

Product Recall

Focusing on Intelligent ManufacturingLeveraging China's leading industrial internet-based intelligent platform in the gas industry, the Group has achieved full-processdigital control and resource coordination in production. By building a digital full-chain system covering R&D, production, sales anddelivery, the Group continuously optimizes gas production processes and distribution networks, providing gas solutions with bothquality assurance and low-carbon attributes for various industries, establishing e?ciency benchmarks in the industrial gas sectorthrough intelligent manufacturing. By the end of the Reporting Period, the Group has implemented multiple smart managementsystems focused on di?erent domains to comprehensively enhance operational e?ciency. For detailed information, please referto the special topic section titled Digital Intelligence Empowerment: Unlocking New Code to Sustainable Development, whichlocated in the preceding chapters of this report.

Prioritizing Safe Production

The Group consistently implements and adheres to the safetyproduction management policy of "Safety first, Preventionforemost, and Comprehensive management". It emphasizesa company-wide safety responsibility system, prioritizespreemptive prevention and risk control. By establishing safetytraining matrix, implementing full-process safety inspectionand promoting quantifying measuring mechanism, ensuringthe effective operating of standardized safety manufacturingsystem, safeguarding employees' lives and property security.The Group has compiled theSafety Management SystemCompendiumto ensure all safety work has establishedregulations and all operations follow de?ned rules. The Grouphas set up a Work Safety Committee, which regularly convenessafety production meetings to analyze safety conditions, assignsafety tasks.

Production Safety Management

Risk identi?cation and classi?cation control, along with hidden hazard investigation and management, form two critical lines ofdefense for corporate safety production. The Group safeguards safety through a management model integrating "institutionalsafeguards, digital empowerment, and cultural guidance". The Group enhances employees' safety awareness and risk-avoidancecapabilities through diverse initiatives, continuously advancing safety risk management. To this end, the Group has rolled out aseries of safety assurance measures, to ensure that every employee internalizes safety principles and translates them into actions,collectively fostering a secure and harmonious work environment.

Responding to Safety Risks

Safety Management MeasuresSafety Training

Safety Knowledge

Contest

Safety InspectionEmergency Drill……

Achieved

Major casualty incidents

Fire, explosion and other accidents

Product Recall DrillDuring the Reporting Period, the Group conducted a simulated recall drill for the food additive nitrogen production line.Conduct closed-loop recall process drills in accordance with product recall related policies, including problem discoveryand evaluation, recall planning, information release and communication, recall implementation and treatment, and follow-up recti?cation.

Product Recall Process

Pre-recall

Identify and determine whether there are products that need to be recalled through client complaints, media reports,internal quality inspection and other channels

Under-recall

The recall work is carried out based on the corresponding process of levelsPost-recall

Carry out communication, write reports, and implement corrective actions

Key Performance

Internal quality audits

, Product recall incidents

/ 60 // 61 /

Innovative Technology,Driving High-QualityDevelopment

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

In the aspect of safety culture development, the Group integrates safety concepts into the daily behavioral norms of employeesthrough the "Safety Production Month" themed activities, emergency drills, and safety culture bulletin boards, thereby fortifyingthe safety defense line for the Group's stable operations and sustainable development.

Safety Culture Development

Strengthening Safety Training to Enhance Employee Safety CompetenceThe Group has established a hierarchical and categorized safety education matrix, integrating fragmented learningwith systematic instruction. Leveraging channels such as safety culture bulletin boards and information platforms,it systematically advances the implementation of primary safety production responsibilities. Emphasis is placed onreinforcing awareness of the "Four No-Harm" principles within the three-tier safety education system, fostering a stronglearning atmosphere where "everyone prioritizes safety and is equipped to handle emergencies", thereby building anideological defense line against production safety incidents.

"Safety Production Month" Campaign

During the Reporting Period, the Group organized diverse activities under the theme "everyone prioritizes safety andis equipped to handle emergencies — unblocking life channels." During the campaign, the Group further strengthenedthe safety awareness and risk prevention ability of employees by carrying out targeted special training, analyzingaccident cases, and posting activity banners and knowledge publicity posters.

Indicators Unit 2024

Safety InputCNY Million29.02Work-related DeathsPersons0Annual Production Safety AccidentsTimes0

/ 62 // 63 /

Innovative Technology,Driving High-QualityDevelopmentJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

Delivering High-Quality Services

The Group always adheres to a steadfast client-centric approach, leveraging its competitive edge in integrated gas supplysolutions to continuously enhance service capabilities, striving to deliver superior products and service excellence while achievingcontinuous improvement in client satisfaction metrics.

The Group has established a robust client service ecosystem, delivering comprehensive end-to-end solutions that integrate gasutilization planning, system design, and installation engineering. Furthermore, our seamless integration of services spans R&D,manufacturing, cylinder ?lling, logistics, quality assurance, operational support, and recycling management for diversi?ed industrialgases.

Full Life Cycle Service

Client Service System

To ensure service quality, the Group has establishedthe Client Complaint Handling ProcedureandService Control Procedure,aimed at quickly responding to and e?ectively resolving issues reported by clients while continuously optimizing their serviceexperience.

Client Communication Channels

Website：www.jinhonggroup.comWeChat O?cial Account：金宏气体

Hotline：400-828-7377-5Telephone：0512-65767715

Client Satisfaction Survey Dimension

Client Service Quality Month Campaign

In July 2024, the Group launched the Client Service Quality Month campaign under the theme "Elevate Service,Delight Clients – Excellence in Action". During the campaign, the Group conducted a series of service qualityimprovement initiatives, focusing on refining service details, strengthening team training, innovating servicemodels, and addressing key client feedback and other hot-spot issues. Efforts were made to elevate servicestandards by starting with meticulous improvements and achieving breakthroughs in critical areas.

Client Complaint Handling Process

Customized gassupply schemeplanning service

Inspectionand predictivemaintenance

Customized designand manufacturing

Intelligent logisticsdistribution

Professionaltechnical support

Multi-channelconsultingservices

Complaint IntakeCase Acceptance

Root Cause AnalysisContinuousImprovement

Complaint ResolutionCase Closure

ProductQuality

ClientService

LogisticsPriceConsultation

& Complaints

Installation

During the Reporting Period

Client satisfaction rate

96.95

%， Client complaint resolution rate

%

The Group conducts annual client satisfaction surveys and employs continuous communication mechanisms to deeply understandclient needs, promptly resolve issues, and deliver exceptional service experiences.Client Satisfaction Management

/ 64 // 65 /

Innovative Technology,Driving High-QualityDevelopmentJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Rights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Empowering Talent,Shaping a Vision ofExcellence

Responsible Stewardship,Co-advancing CollectiveWell-being

Collaborative Development,Forging New IndustryParadigms

The Group has always adhered to its corporate philosophy of "delivering clients withSupreme Excellence——Jinhong Gas, Exquisite Purity" through the vertical and horizontaldevelopment strategy, systematically deepening cross-industry synergies across the valuechain while refining its supply chain governance framework. By actively pursuing globalmarket expansion, we collaboratively drive the advancement of a high-quality developmentparadigm within the industrial gases sector.

Building a Responsible Supply Chain ……… 68Promoting Strategic Cooperation

……………

70Expanding Overseas Operations …………… 71Co-building with Industry

……………………

Establish internal management regulations specifying green procurement requirements,

providing clear guidance for employees in procurement practicesPrioritize suppliers with environmental protection certi?cations and select equipment

with minimal environmental impact

Implement a localized procurement strategy by prioritizing local suppliers to reducetransportation distances, enhance supply chain stability and security, and promote thesustainable development of regional economies

Green SupplyChain

LocalProcurement

In terms of sustainable procurement practices, the Group adheres to the principles of environmental protection and socialresponsibility, actively guides suppliers to practice green procurement, and supports the sustainable development of the industry.Leveraging the SRM system, the Group developed a comprehensive supply chain platform. This platform incorporates a supplierinformation database and implements standardized access processes and quali?cation review mechanisms, ensuring normalizedand transparent supplier selection. It supports digitalized lifecycle control of the supply chain and provides technologicalassurance for building a highly collaborative supply chain ecosystem.

Sustainable ProcurementSelection and Quali?cationAssessment and CategorizationOptimize selection and quali?cation

mechanismsEstablish an evaluation panel to conduct

assessments

Supplier dynamic classi?cation management Quanti?ed supplier characteristic evaluation Critical supplier audit

Building a Responsible Supply Chain

The Group strictly complies with theLaw of the People's Republic of China on Tenders and Bidsand theRegulations for theImplementation of the Law of the People's Republic of China on Tenders and Bids, and has established management systemssuch as theGroup Procurement Management Measures,Supplier Classi?cation Management Regulations,Procurement BusinessManagement Process,and Procurement Bidding and Tendering Management Systemto ensure standardization, transparency, andfairness in procurement practices.During the Reporting Period, the Group initiated a strategic upgrade of supply chain management by establishing a GroupProcurement Center to consolidate procurement resources across subsidiaries and business units. This initiative strengthenedcentralized procurement of core assets and critical materials, thereby enhancing operational e?ciency and core competitiveness.

Supplier Management

Integrity Management

The Group consistently emphasizes integrity management of suppliers, requiring key suppliers to sign theSupplier Integrity andSelf-Discipline Commitment Letterand theIntegrity Agreement. This initiative drives suppliers to maintain ethical complianceduring collaboration, thereby safeguarding a fair market environment and fostering healthy and transparent cooperativerelationships.

During the Reporting Period

% of key suppliers signed the Supplier Integrity and Self-Discipline Commitment Letter

% integrity training completion rate

No incidents

involving supplier breaches of business ethics

/ 68 // 69 /

Collaborative Development,Forging New IndustryParadigmsJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Responsible Stewardship,Co-advancing CollectiveWell-beingEmpowering Talent,Shaping a Vision ofExcellenceInnovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Expanding Overseas Operations

The Group has actively responded to China's Belt and Road Initiative and advanced its international market expansion under the"vertical and horizontal" development strategy. Building on its comprehensive strengths in the industrial gas sector, the Grouphas established subsidiaries in Vietnam, Thailand, Singapore, and other regions. Leveraging its core competitiveness, the Grouphas successfully built a robust overseas business platform to drive its products into global markets.

Promoting Strategic CooperationThe Group actively expands its business domains, establishing in-depth partnerships with leading enterprises and institutionsboth within and beyond its industry. Through resource sharing and complementary strengths, the Group has not only enhancedits own market competitiveness but also created new development opportunities for partners, collaboratively exploring newpathways for industry advancement to achieve mutual bene?t and shared success.

Mass Production Gas Supply to CR Microelectronics Wuxi Electronic Bulk Specialty

Gases Project

Medium-to-Large On-Site Gas Generation, Advancing Green Steel Production

The Group held the gas supply commencementceremony for the CR Microelectronics WuxiElectronic Bulk Specialty Gases Project in April2024, marking its mass production phase.This project achieves for the first time thereplacement of existing supply contracts formature mass production wafer fabricationlines. Through this milestone, the Group hasdemonstrated its technical capabilities andreinforced its market competitiveness.

In July 2024, the Group acquired and upgradedoxygen generation units and backup systems ofChenggang Gas, which is under Yunnan QujingChenggang Group (hereinafter "Chenggang Group").During the upgrading process, energy-intensiveequipment was replaced to enhance energyutilization efficiency. Concurrently, the Groupsigned a long-term industrial gas supply contractwith Chenggang Group to deliver safe, stable, andpremium-quality industrial gas supply services.

During the Reporting Period

The Group expanded its product exports to

additional countries, now covering a total of

countries

ABU DHABI MENA INDUSTRIALGASES

CONFERENCE 2024

THE 43RD SEMINARONINDUSTRIAL & MEDICAL GASES

TECHNOLOGY AND APPLICATIONSASIAN EXHIBITION ON GASESEQUIPMENT-IG ASIA

Successfully Signing the First Overseas On-Site Gas Production Project

In December 2024, the Group secured a milestone agreement for an on-site gas productionproject in Thailand. This achievement marks a signi?cant leap in the Group's internationalexpansion, transitioning from "product exports" to "exporting business models." It highlightsthe Group's robust capabilities in gas services and global competitiveness, laying a solidfoundation for further overseas market expansion and broadening its operational reach.

/ 70 // 71 /

Collaborative Development,Forging New IndustryParadigmsJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Responsible Stewardship,Co-advancing CollectiveWell-beingEmpowering Talent,Shaping a Vision ofExcellenceInnovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Co-building with Industry

The Group actively engages in building the industry ecosystem, collaborating with stakeholders to advance the sustainabledevelopment of the industrial gas sector. By participating in industry association events, technical exchange conferences, andstandards development, the Group shares its technical expertise and management practices to foster knowledge sharing andindustry collaboration. By the end of the Reporting Period, the Group has joined multiple industry organizations, including theChina Industrial Gases Industry Association, the Integrated Circuit Material Industry Technology Innovation Alliance, the ChinaHydrogen Alliance, and the China Semiconductor Industry Association, continuously deepening and expanding the scope ofindustry engagement.

SEMICON China International Semiconductor Exhibition

2024 Beijing ICWORLD Exhibition

The Group actively participates in formulating relevant standards. Leveraging its technical expertise and extensive experience, itplays a signi?cant role in standard-setting to drive the industry toward greater standardization and e?ciency.

Industry Standard Development and Promotion

Leading National Standard Drafting as Primary Author of GB/T 43965-2024Electronic Grade Ethyl Silicate

2024 10th China Industrial Gas Industry Summit

SCI (Sublime China Information)

Strategic Partnership Excellence Award

Fortune Gas

Synergy Pioneer Award

Tongwei Solar

Service Excellence Award

Renshine Solar

Excellent Supplier Award

CR Semico

During the Reporting PeriodPublished

national standards, implemented

national standards, cumulatively presided over or participated in

standards, including

national standards

金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告

携手同行共创行业新篇章

The Group has been awarded numerous honors by partners and industry organizations in recognition of its outstandingperformance. These accolades not only a?rm its past e?orts but also motivate the Group to continue advancing in the future.

Partner Recognition

/ 72 // 73 /

Collaborative Development,Forging New IndustryParadigmsJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Responsible Stewardship,Co-advancing CollectiveWell-beingEmpowering Talent,Shaping a Vision ofExcellenceInnovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Empowering Talent,Shaping a Vision ofExcellence

The Group fully recognizes that talent is the core driving force of innovation anddevelopment, adhering to the people-oriented talent management philosophy to achievethe alignment of corporate value and employees' self-worth. The Group also prioritizesprotecting employee rights, safeguarding employee health, supporting employee growth,and fostering a diverse, inclusive, open, and trust-based work environment.

Protecting Employee Rights and Interests … 76Empowering Employee Growth

………………

82Focusing on Employee Care ………………… 86

Protecting Employee Rights and Interests

Employment Management

The Group strictly complies with laws and regulations such as theLabor Law of the People's Republic of Chinaand theLaborContract Law of the People's Republic of China. It has established relevant systems including theEmployee Handbook,the

Labor Contract Management System, and theEmployee Transfer Management Regulations.These measures further standardizethe recruitment process to ensure openness, fairness, and impartiality in employment practices. The Group ensures that allemployment processes, including recruitment, on-boarding, promotion, and termination, are conducted without discriminationbased on gender, race, marital status, physical condition, surname, regional religious beliefs, or any other form of bias. Consistentprocedures and standards are maintained to uphold the equal rights of all employees.During the Reporting Period, the Group did not encounter any violations such as the use of child labor, forced labor, or discrimination.

The Group places a high priority on the optimization and re?nement of its employee structure. By attracting and cultivating adiverse range of outstanding talents, the Group has built a high-quality and highly creative workforce. This continuous in?ux oftalent provides an inexhaustible source of momentum for the Group's business expansion and innovation, enabling breakthroughsin product development, market expansion, and customer service.

Employee Structure

Key Performance

Total number of Group employees

2,695, Percentage of female management

21.05

%Number of ethnic minority employees

Key PerformanceLabor contract signing rate

%Full and timely payment rate of labor compensation

%Coverage of ?ve social insurances and one housing fund

%

Number of employees by gender

Number of employees by grade

Number of employees by education

level

Females

Number of employees by age

Number of employees by specialty

<30

Technology

Sales 383

Production 739

Others 276Finance 115

Master 44

Males2,097

≥ 60

40-50(not including 50)

Generalemployees2,306

Middlemanagement

Generalmanagement

Seniormanagement

Doctor 5Junior college

Undergraduate

Transportation

Below junior college1,410

50-60(not including 60)

30-40(not including 40)

/ 76 // 77 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

Campus Recruitment

The Group actively carries out campus recruitment, widely recruits young talents, andinjects vitality into the construction of a level talent echelon.

审图号：GS(2022)4309号

During the ReportingPeriod, the Groupconducted recruitmentactivities in over ten

universities in ?veprovinces.

Compensation and Bene?ts

The Group has established a compensation system characterized by "vertical development and horizontal progression,"formulating a series of compensation management regulations, including theCompensation Management System. Thiscorrelation continuously optimizes and implements the performance-based compensation management framework, ensuring thefairness and incentivizing nature of the compensation framework to fully stimulate talent potential.

Compensation Structure

Basic

Pay

Overtime

Pay

LicensedAllowance

PostAllowancePerformance

IncentiveAllowance

Special/OtherSubsidiesDutyAllowance

Compensation Structure

School-Enterprise Cooperation Project with Nanjing Tech University

In April 2024, the Group carried out exchanges on theintegration of production, education and researchwith Nanjing Tech University, and deepenedthe school-enterprise collaborative educationmechanism. Both parties signed theEmploymentand Entrepreneurship Internship Agreement, andthe Group was awarded the "Employment andEntrepreneurship Internship Practice Base" plaque.This initiative promotes the organic connectionbetween the education chain and the industrychain. During the Reporting Period, the Group hasrecruited 5 talents through the practice base.

吸纳人才

The Group attaches great importance to the discovery and cultivation of talent, and is committed to building a comprehensive, multi-leveltalent team to support horizontal and vertical strategic development. The Group has formulated theRecruitment Management Regulations

and other systems to standardize various tasks in the talent recruitment process. Based on the Group's strategy and departmental annualplans, it determines annual recruitment needs and adopts diversified channels, including campus recruitment, social recruitment, andschool-enterprise cooperation, to widely attract industry elites and strengthen the talent foundation for the Group's development.

Talent Attraction

The Group closely focuses on its business needs and actively carries out social recruitment activities. In 2024, it actively respondedto the relevant work arrangements of the Suzhou High-level Talent Hunting Fair, and is committed to attracting outstandingtalents to join the Group and jointly promoting the development and innovation of the enterprise.

Social Recruitment

The Group actively carries out school-enterprise cooperation, precisely targets talents suitable for majors, and achieves ane?ective connection between talent supply and demand.School-Enterprise CooperationDuring the Reporting Period

Recruitment completion rate

%，

new employees，

new female employees

/ 78 // 79 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

The Group is dedicated to caring for employees' work and life, actively fostering a harmonious and positive cultural atmosphere.Through diverse employee care initiatives, the Group supports employees in achieving joyful work and healthy living, comprehensivelyenhancing their sense of engagement, ful?llment, belonging, and well-being.

The Group attaches great importance to the welfare guarantee for employees, formulates theWelfare Management System, andcontinuously optimizes the employee welfare system to meet the diverse and di?erential welfare needs of employees. The Grouprenovates the infrastructure on the first floor, provides employees with multiple welfare benefits such as high temperatures,holiday gifts, illness and injury assistance, congratulatory gifts for newborns, complimentary working meals, regular healthchecks, fun sports meetings, etc., to enhance employees' sense of belonging.

Employee Welfare System

Five Social Insurancesand One Housing Fund

Basic Endowment Insurance, Basic Medical Insurance, Unemployment Insurance, MaternityInsurance, Work-Related Injury Insurance, Housing Provident Fund

Holidays

Annual Leave, Personal Leave, Sick Leave, Marriage Leave, Prenatal Check-up Leave, MaternityLeave, Breastfeeding Leave, Maternity Nursing Leave, Work Injury Leave, Compensatory Leave,Family Visit Leave, etc.

Welfare Allowances

Health Checks, Holiday Gifts, Complimentary Working Meals, Heatstroke Prevention AllowanceIllness and Injury Assistance, Occupational Health Examination, Hardship allowance, UnionBene?ts, etc.Other Bene?tsDepartmental Activity, Birthday Congratulations, Congratulatory Gifts for Newborns, etc.

The Group fosters a warm, equitable, and opportunity-rich environment for female employees, demonstrating the Group'shumanistic values and social responsibility.

Series of Events for "March 8th Goddess Day"

On March 8, 2024, the Group organized a unique corporate culturalevent titled "Savoring the Charm of Oriental Tea, Weaving a FulfillingLife." This initiative aimed to express care and appreciation for femaleemployees while enriching their cultural experiences during theholiday celebration.

Protecting Every Mother's Love

The Group has specially established nursing rooms, offeringprivate and tranquil spaces equipped with comfortable facilities,fully dedicated to creating a warm and secure environment forbreastfeeding employees.

Care for Women

Embracing Harmony at Jinhong: Jointly Celebrating Reunion Mid-Autumn FestivalSeries of Events

On September 14, 2024, the Group organized a series ofautumn garden activities injecting new momentum into thecollective pursuit of high-quality development goals. Theevent featured a diverse range of activities, encompassing?ve themed segments: appreciation, exploration, creation,dining, and gifting. These engaging experiences allowedemployees to deepen emotional connections amidstlaughter and joy, further enhancing their sense of belongingand well-being.

Mid-Autumn Festival Garden Fair Series

The Group launched the Mid-Autumn Festival Bene?tsGiveaway event. This initiative provided all employeeswith holiday benefits filled with heartfelt sentiments,while also conveying the Group's profound care andfestive wishes to each sta? member.

Mid-Autumn Festival Bene?ts Giveaway Event

During the Reporting Period

Expenditure on employee welfare CNY

53.78

million

/ 80 // 81 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

Employee DevelopmentThe Group has established policies, such as theManagement Measures for the Evaluation of Professional Titles and VocationalSkills of Jinhong Gas Employees, and theCompensation Management Systemto standardize the job level and promotionmechanisms, providing employees with grow up career paths and fostering mutual growth for both employees and theorganization. Additionally, the Group has implemented a smooth performance feedback and appeal mechanism. Employees canaddress any concerns regarding assessment results through phone, email available channels.

The Group has formulated theJinhong Gas Employee Academic Advancement Education Management Measuresand implementedemployee academic advancement programs, encouraging employees to obtain higher academic qualifications and externallyrecognized skill certi?cations. This initiative comprehensively enhances employee competence and professional skills, providingstrong talent support for the Group's development. In 2024, three employees were awarded senior professional titles, sevenreceived intermediate titles, 14 obtained certi?ed safety engineer quali?cations, and 19 achieved senior technician certi?cations.Additionally, the Group conducted training programs for professional technical titles and vocational skill level evaluations. By theend of the Reporting Period, a cumulative total of 321 employees had attained quali?cations as senior technicians, technicians,and senior technicians.

Career Development and Promotion Pathways

Management Sequence

Professional Sequence

Operational Sequence

Specialist

Level

Assistant Engineer

Level 1 OperatorLevel 2 OperatorLevel 3 Operator

Senior Engineer

Senior SpecialistEngineerEngineer

SupervisorLevel

AssistantManager Level

AssistantDirector LevelManagerLevel

Director Level

SeniorExecutive

Empowering Employee Growth

The Group is committed to establishing a systematic talent development framework, providing employees with clear careerprogression pathways. By integrating personalized career planning guidance, the Group empowers employees to grow alongsidethe organization, creating shared value together.

Employee Training

The Group has established training systems such as theTraining Management Regulations, theMentor Management Standards,and theInternal Trainer Level Management Regulations, supporting employees throughout their entire career lifecycle. Leveragingthe "Jinhong Management Academy," the Group designs di?erentiated and customized training programs, ensuring that everyemployee has access to diverse development opportunities and growth platforms.

Employee Training System

Training Course SystemType

Education Promotion Program (high school tojunior college, junior college to undergraduate)

Title Promotion ProjectOther Training

Middle/Senior Executive Training Program

Grass-roots Cadre Training Progrem

Cadre Training

New Employee Orientation ProgramTraining Program for New College StudentsRookie Training

FinanceHumanResources

R&D

Logistics

Quality

Production

EHS

Professional Training

During the Reporting Period

Invested CNY

0.76

million in training, achieved a

% training coverage rate for new employees, internallecturer

employees, and recognized as"Suzhou Industrial Gas Public Training Base"

/ 82 // 83 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

Key Employee Training Initiatives

Management Trainee Mentorship Ceremony

The Group held a mentorship ceremonyfor management trainees under the theme"Every skill has its master, mentorshippasses the torch from generation togeneration." To helping them transitionfrom students to professionals, integrateinto the Jinhong Gas family.

Second Phase Sales T-Plan Training Program

The Group launched the second phaseof the Sales T-Plan training program.The curriculum covered three majorcategories: general management, businesscapabilities, and general skills, aiming tobuild a talent pipeline for the sales system,enhance their business competencies,and prepare a reserve talent pool for theGroup's future development.

Second Phase Production T-Plan Talent Development ProgramThe Group has launched the secondphase of the Production T Plan talent de-velopment program. The curriculum en-compasses knowledge and managementof gases and gas cylinders, quality man-agement, cost management, equipmentmanagement, and process management,aiming to comprehensively enhance theprofessional expertise and comprehen-sive capabilities of participants in the?eld of production.

ManagementTrainee

Management TraineeTraining Class

?Department responsibilities/Business learning.?Specify learning materials and business documents.? Introduce the relevant work process and provide business

guidance.New EmployeeInduction Training

? Compulsory courses: system training, corporate culture

training, product knowledge training, safety training.New EmployeeTransferredEmployee

Job Training and JobTransfer Training

? According to the department's job training manual,

it mainly includes the safety operation speci?cation,

equipment maintenance, emergency plan, 6S and

employee code of conduct.

JuniorManagerialPersonnel

ManagementAdvancement

? Three levels of management training for team leader

management, junior manager management, middle and

senior management.Outward BoundTraining

? Outdoor challenges, team building activities, thinking camp

activities, cultural experience activities and other training.Elementary andIntermediateManagerial PersonnelDecision MakerLeader

Leadership Training

? Macroeconomic, strategic planning, organization and

management, business wisdom training.

All Employee

Core Values Training

? Training with Jinhong Gas corporate culture as the core,

including:

Jinhong DNA,Speaking with Results,Leading the

Team to Get Results and other courses.ProfessionalQuality Training

?How to Grasp the Work Life,O?ce Skills (PPT+Excel+Word),

Professional Image and Workplace Etiquette,Stress and

Emotional Management,Five Managementand so on.BusinessAdvancement

? Seven series of training for marketing, customer service,

human resource management, ?nancial management,

production quality management, technology research and

development, logistics management.

Training ObjectTraining ProgramTraining Content

/ 84 // 85 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

Focusing on Employee Care

Employee Health

The Group is committed to providing employees with a safe and healthy working environment. The Group fosters a supportiveworkplace atmosphere by enhancing communication with employees, organizing diverse wellness activities, and conductingoccupational health and safety training, ensuring the comprehensive protection of employees' physical and mental health.

The Group strictly adheres to occupational health-related lawsand regulations, including theOccupational Disease Preventionand Control Law of the People's Republic of China, theRegulationson Labor Protection in Workplaces Using Toxic Substances, theMeasures for the Management of Occupational Health Examinations,and theSupervisory Measures for Employer Occupational HealthSurveillance. It has established systems such as theOccupationalHealth Management Regulationsand thePersonal ProtectiveEquipment Management Regulationsto identify and control healthand safety risks, ensuring the well-being and safety of employees.During the Reporting Period, the Group obtained ISO 45001 OccupationalHealth and Safety Management System certification.In addition, the Group has established health and safety objectivesbased on its actual development needs, providing clear goalsand management indicators for the prevention and control ofoccupational disease risks.

Employee Communication

The Group actively listens to employee feedback through channels such as employee forums and departmental meetings, facilitatinga two-way flow of information. Additionally, the Group conducts one-on-one conversations with employees to gain a deeperunderstanding of their career development needs and challenges in both work and personal life. This approach e?ectively enhancesorganizational cohesion and fosters a stronger sense of belonging among employees.

ISO 45001 Occupational Health and Safety

Management System Certi?cation

AchievedIncidence of occupational disease

%

During the Reporting PeriodEmployee satisfaction rate

97.60

%Management Trainee ForumThe Group convened a symposium for the 2024 cohortof management trainees, focusing on three key areas:

deepening professional expertise to empower the enterprise,maintaining a balanced mindset for self-improvement,and courageously voicing opinions and suggestions. Thesymposium provided a platform for management trainees toshare their practical explorations and insights into the Groupculture, collectively fostering a positive team atmosphereand corporate culture.

/ 86 // 87 /

EmpoweringTalent, Shaping aVision of ExcellenceJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Innovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

Responsible Stewardship,Co-advancing CollectiveWell-being

Responsible Stewardship,Co-advancing CollectiveWell-being

The Group consistently upholds its responsibility and mission as a corporate citizen,actively engaging in public welfare and social activities, striving to extend the benefits ofits development to the community and give back to society.

Building a Prosperous Home Together ……… 90Engaging in Philanthropic Efforts

……………

Building a Prosperous Home Together

While continuously expanding its business footprint, the Group remains steadfast in its commitment to giving back to societyand actively ful?lling its social responsibilities. Through initiatives such as investments and acquisitions, the Group has not onlyaccelerated its business growth but also created numerous employment opportunities locally, signi?cantly contributing to theprosperity of the regional economy.

Targeted Assistance to Support Families in NeedSubsidiary Jiaxing Yaoyi Gas Co. Ltd. actively participated in the targeted poverty alleviation project in Yuan Hua Townand Kalong Town, undertaking assistance tasks and providing practical support to families in need. This initiative notonly o?ered ?nancial aid to these families but also conveyed the Group's warmth and care, helping improve their livingconditions and improve the happiness of life.

Engaging in Philanthropic E?orts

The Group places great emphasis on public welfare andvolunteer activities. In 2024, the Group organized a seriesof initiatives, including "community service", "voluntaryblood donation", and "visiting firefighters", to fulfill its socialresponsibilities. Simultaneously, it carried out multiplecharitable donation campaigns, establishing a positive corporateimage characterized by dedication, responsibility, and proactivecontribution.

Jinhong Gas Delivers "Oxygen Care+" Community Services with Heartwarming Accessibility

The Group launched the "Oxygen Care" in-itiative, offering blood pressure and bloodoxygen level measurements for communityresidents. Through meticulous and attentiveservices, the community residents experi-enced not only thoughtful convenience butalso the heartfelt care from Jinhong.

Donation to Suzhou Youth DevelopmentFoundation: Funds were allocated to supportyouth-focused initiatives, including the"Suzhou Youth Micro-Care Project", summerchildcare programs for youth, and the "DreamTransformation+" Care Plan.Targeted Donation to Huangdai Town Chamberof Commerce: Through the chamber ofcommerce, the donation was transferred to thelocal charity association, speci?cally allocatedto the elderly meal subsidy program, e?ectivelyimproving the quality of life for the elderlycommunity. Charitable Donation Initiatives

Huangdai Town Voluntary Blood Donation Event

Employees of the Group actively participat-ed in the voluntary blood donation eventin Huangdai Town, contributing their shareof compassion and strength to save lives.This initiative not only promotes the spirit ofhumanitarianism but also demonstrates astrong sense of social responsibility.

"August 1st" Cooling Comfort Initiative

In anticipation of the "August 1st" Army Day,the Group visited the Huangdai Town andXiangcheng District fire brigades to conduct acomfort and care activity. The Group extendedsincere greetings and holiday blessings to thefrontline ?re?ghting personnel and presentedthem with comfort gifts.

During the Reporting Period

Charitable donations amounted toCNY

1.02

Million

/ 90 // 91 /

Responsible Stewardship,Co-advancing CollectiveWell-beingJinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

Empowering Talent,Shaping a Vision ofExcellenceInnovative Technology,Driving High-QualityDevelopmentRights & Duties,Building GovernanceFoundations

HarmoniousCoexistence,Greening the Future

Collaborative Development,Forging New IndustryParadigms

The growth of enterprises and the undertaking of socialresponsibility are interrelated, they mutually in?uence each otherand collaboratively promote the development of businesses. Toachieve healthy and sustainable development, enterprises focusshould extend beyond their own operations and profits, butalso actively fulfill their social responsibilities. Corporate socialresponsibility can not only enhance brand image and reputation,but also create broader development space and opportunities forenterprises.Jinhong views environmental, social, and corporate governanceas integral components of fundamental operations, alongsideresearch and development, production, and sales. This approachnot only serves as a cornerstone for Jinhong's sustainable andlong-term development, but also represents a crucial meansfor enterprises to fulfill their social responsibilities. In our dailyoperations, we prioritize balancing the interests of all parties, with aparticular focus on environmental protection, social responsibility,and corporate governance matters. We are committed to activelyful?lling the needs of all stakeholders, safeguarding their rights andinterests.As a preeminent Group in the domestic industrial gas industry, wefully grasp the significance of corporate social responsibility andseamlessly integrate it into our long-term development strategy. Weexamine the intricate nexus between social responsibility and theenduring prosperity of enterprises through the prism of societal,environmental, and economic harmony. Our endeavor is totransform social responsibility into a catalyst for enterprise growthand enduring bene?ts. We aim to achieve a harmonious blend ofeconomic pro?tability and societal welfare, thereby contributing tothe sustainable development of society as a whole.

Look Forward to the Future

/ 93 // 92 /

Catalogue

Self-Regulatory GuidanceNo. 14 for Listed Companiesof Shanghai Stock Exchange-Sustainability Report (TrialImplementation)

GRI SustainabilityReporting Standards(GRI Standards)About this Report /2-2/2-3/2-4Message from the Chairman //2024 Sustainable Development Highlights/207-1/207-2About Jinhong Gas /2-1/2-6/2-9

SustainabilityGovernance

Sustainability ConceptArticle 11 2-9/2-14/2-22Actively Responding to theUnited Nations SDGs

Article 11 2-9/2-14/2-22Communication withStakeholders

Article 9/Article 53 2-16/2-19Analysis of Material IssuesArticle 5 3-1/3-2/3-3Topic:

Digital Intelligence Empowerment: Unlocking NewCode to Sustainable Development

Article 42 /

Rights & Duties,BuildingGovernanceFoundations

Standardizing CorporateGovernance

Article 12/Article 51

2-9/2-10/2-11/2-12/2-13/2-16/2-17/2-18/2-19/2-20/2-23/2-24/2-27/405-1Consolidating RiskManagement

Article 55 2-24/2-25/2-27Strengthening Business EthicsArticle 55/Article 56

205-1/2-16/2-24/2-25/2-26/2-27/205-2/205-3/206-1Ensuring Information SecurityArticle 48 418-1

HarmoniousCoexistence,Greening theFuture

Addressing Climate Change

Article 21/Article 22/Article 23/

Article 24/Article 26/Article 27

305-1/305-2/305-4/302-1/302-3/302-4/302-5Implementing EnvironmentalManagement

Article 21/Article 27/Article 30/

Article 31

2-12/2-17Enhancing Resource UtilizationArticle 35/Article 36/Article 37 303-1/303-2/303-3/303-4/303-5Ensuring Compliant EmissionArticle 30/Article 31/Article 33

305-6/305-7/306-1/306-2/

306-3/306-4/306-5Protecting EcosystemArticle 32 304-1/304-2

Appendix Ⅰ: Reporting Index

Catalogue

Self-Regulatory GuidanceNo. 14 for Listed Companiesof Shanghai Stock Exchange-Sustainability Report (TrialImplementation)

GRI SustainabilityReporting Standards(GRI Standards)

InnovativeTechnology,Driving High-QualityDevelopment

Optimizing Innovation SystemArticle 42 203-1Respecting IntellectualProperty Rights

Article 42 /Adhering to Product QualityArticle 47 416-1Focusing on IntelligentManufacturing

//Prioritizing Safe ProductionArticle 47/ Article 50 403-2/403-5/403-6/403-7/403-8Delivering High-QualityServices

Article 47 /

CollaborativeDevelopment,Forging NewIndustryParadigms

Building a Responsible SupplyChain

Article 45

2-6/204-1/308-1/308-2/414-1/414-2Promoting StrategicCooperation

Article 45 /Expanding OverseasOperations

Article 45 /Co-building with IndustryArticle 45 /

EmpoweringTalent, Shaping aVision of Excellence

Protecting Employee Rightsand Interests

Article 50

2-7/2-8/2-19/2-20/2-30/201-3/203-1/401-1/401-2/404-3/405-1/406-1Empowering Employee GrowthArticle 50 404-1/404-2/404-3Focusing on Employee CareArticle 50

403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10ResponsibleStewardship,Co-advancingCollective Well-being

Building a Prosperous HomeTogether

Article 39/Article40 203-1/413-1Engaging in PhilanthropicE?orts

Article 39/Article40 203-1/413-1

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAppendix Ⅰ: Reporting Index

/ 94 // 95 /

Appendix II: Performance Table

DimensionalityIndicators Unit 2024

EconomicPerformance

Revenue CNY Million2,525.28Net Income Attributable to Shareholders of ListedCompany

CNY Million201.23Total Assets CNY Million6,767.23Total Tax Payment (Excluding Personal Income Tax) CNY Million160.63

GovernancePerformance

Shareholders' Meeting Times3Proposal Passed at Shareholders' Meeting Items 25Board of Directors Persons8Independent Director Persons3Female Director Persons2Board of Directors Meeting Times 16Proposal Deliberated by Board of DirectorsItems 68Supervisory Board Meeting Times10Proposal Deliberated by Board of SupervisorsItems 32Cash Dividend Per Share (Tax Included)Yuan ?0.25Total Amount of Cash Dividends Disbursed (Tax Included) CNY Million119.67?Percentage of Net Income Attributable to Shareholders ofListed Company in Consolidated Statement

%59.47?Performance PresentationTimes3Investor CommunicationSessions 184SSE E-Interactive ReplyTimes29SSE E-Interactive Response Rate %100Regular Report DisclosurePieces4Interim Announcement DisclosurePieces209Internal Audit Project Items45Sta? Anti-Corruption Training Coverage Rate%100Major Violation of Business EthicsTimes0Information Security Related IncidentsTimes0

金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告Appendix II: Performance Table

DimensionalityIndicators Unit 2024

EnvironmentalPerformance

Environmental ManagementEnvironmental Protection InputCNY Million4.01Compliance Rate of Waste Water, Waste Gas, Dust and Noise%100Chemical Spill IncidentTimes0Other Major Environmental ViolationsTimes0Events that Have a Major Impact on Biodiversity Times0

Resource ManagementComprehensive Consumption Intensity

Tons of StandardCoal/CNY Million

11.11

LNG Consumption IntensityTons/CNY Million0.01Gasoline Consumption IntensityTons/CNY Million0.04Diesel Consumption Intensity Tons/CNY Million1.79Consumption Intensity of Purchased ElectricitykWh/CNY Million68,635.31Consumption Intensity of Purchased HeatGJ/CNY Million1.84Water IntensityTons/CNY Million1,512.83GHG Emission ManagementGHG Emission Intensity (Scope 1 and Scope 2) tCO

e/CNY Million 46.14GHG (Scope 1) Emission IntensitytCO

e/CNY Million 5.75GHG (Scope 2) Emission Intensity tCO

e/CNY Million 40.39Carbon Reduction from Renewable EnergytCO

e329.95Management of Three Wastes DischargeWastewater Discharge Intensity Tons/CNY Million 23.83Wastewater Recycling Rate%12.46Exhaust Emission Intensity

Million m

/CNYMillion

0.05

Particulate Emission Intensity Kg/CNY Million0.30SO

Emission IntensityKg/CNY Million0.43NOx Emission IntensityKg/CNY Million0.57VOCs Emission IntensityKg/CNY Million0.40Intensity of Non-hazardous Industrial Solid WasteTons/CNY Million0.001Compliance Rate of General Industrial Waste Generated %100Intensity of Hazardous Solid WasteTons/CNY Million0.013Compliance Rate of Hazardous Waste Generated%100

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAppendix II: Performance Table

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DimensionalityIndicators Unit 2024

IndustrialPerformance

Technological Innovation & Intellectual Property Protection

Investment in R&DCNY Million100.78?R&D Investment As a Percentage of Revenue %?3.99Total Number of R&D TeamPersons386Number of Master Degree or Above in R&D Team Persons29New Patent ApplicationItems68New Application for Invention PatentItems30New Application for Utility Model Patent Items38Newly Granted PatentItems38New Authorized Invention Patents Items19Accumulated Authorized Patents Items366Accumulated Authorized Invention PatentsItems104Product Quality

Quality Internal AuditTimes242Product Recall OccurredTimes0Safe Production

Safety InputCNY Million 29.02Major Casualty AccidentTimes0Incidence of Occupational Disease %0Fire, Explosion AccidentTimes0Work-related DeathsPersons0Safety Training Coverage Rate%100Conduct Safety Emergency Drills Times305Participate in Safety Training Sta?Person-time 22,392

Client Service

Client Satisfaction Rate%96.95Client Complaint Resolution Rate%100Supplier ManagementIntegrity Training Coverage Rate%100

DimensionalityIndicators Unit 2024

EmployeePerformance

Employee Rights and InterestsNew Employees Persons711Recruitment Completion Rate %95New Female EmployeesPersons151Total Number of Employees Persons2,695Coverage Rate of Labor Contract%100Coverage of Five Social Insurances and One Housing Fund%100Full Labor Compensation/Timely Release Rate %100Percentage of Female Management%21.05Percentage of Female Employees%22.19 Ethnic Minority Employees Persons64Employment Violations Times0Compensation and Bene?tsEmployee Welfare Expenditure CNY Million53.78Democratic Management

Employee Satisfaction Rate%97.60Sta? Training and DevelopmentTraining InvestmentCNY Million0.76New Employee Training Coverage Rate%100Internal LecturerPersons38

Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance ReportAppendix II: Performance Table

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Feedback Form

Thank you for taking the time to read Jinhong Gas CO.,LTD. 2024 Environmental, Social, and Governance (ESG) Report. We greatlyappreciate your feedback on our ESG e?orts and this report, as it serves as a crucial foundation for us to continually enhancethe level of transparency in our ESG information disclosure. Your comments and suggestions are invaluable in promoting themanagement and practice of sustainable development within our enterprise. Kindly complete the form below and send us yourfeedback via email.

1. As far as Jinhong Gas is concerned, your identity is：

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development, as well as this report?______________________________________________________________________________

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Mail : dongmi@jinhonggroup.com

金宏气体股份有限公司 | 2024年度环境、社会及治理（ESG）报告Jinhong Gas Co., Ltd. | 2024 Environmental, Social, and Governance Report

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