Orinko Advanced Plastics Co., Ltd.
2024
Environmental, Social andCorporate Governance (ESG) Repo
Appendix 80
About the Report 02Message from Chairperson 03About Orinko 04
CONTENTS
ESG Strategy 12ESG Governance 15Communication with Stakeholders 16Evaluation of Materiality Issues 17
Sustainable DevelopmentManagement
Strategic Carbon Neutrality Action 50Response to Climate Change 54Circular Development 58
Low-Carbon Transition,Reshaping Industry Ecosystems
R&D Innovation 20Green Products and Solutions 24Intellectual Property Protection 26
Making Innovations, EmpoweringIndustrial Development
Environmental Managemen 60Energy Management 61Water Resource Management 63Pollution and Emissions Management 64
Protecting Environment,Building a Green Home Together
Product Quality and Safety 29Supply Chain Management 33Customer Service 36
Maintaining Steady Growth,Upholding Value Creation
Workplace Safety Management 66Dual Prevention Mechanism 68Occupational Health & Safety 69
Putting People First, Buildinga Defense Line to Ensure Safety
Governance System of the Listed Company 39Internal Audit 42Business Ethics 43Information Security 45Digital Construction 47
Ensuring Integrity and Transparency,Practising Normative Governance
Protection of Employees' Rights and Interests 72Human Resources Management 73Employee Development and Training System 75Employee Promotion and Career Development 77Employee Care 78Public Welfare and Charity 79
Embracing Diversity and Shared Growth,Ful?lling Corporate Responsibility
Contents
About the Repo
About the ReportOverview of the Report
This Report is the second environmental, social and corporate governance (ESG)report released by Orinko Advanced Plastics Co., Ltd. (hereinafter referred to as"Orinko", "the Company" or "we"), aiming to disclose the Company's management,actions and performance on ESG issues to its stakeholders.
Organizational Scope of the Report
The headquarters and its branch o?ces and subsidiaries of Orinko Advanced Plas-tics Co., Ltd.Time Range of the ReportThe Report covers the period from January 1 to December 31, 2024. To enhance thecomparability and continuity of the contents, part of the contents may trace back toprevious years where appropriate.Release Cycle of the ReportThe Report is released annually in parallel with the Company's annual report. Thespeci?c time is subject to the o?cial announcement of the Company in the year.
Sources of InformationThe information in the Report is sourced from internal statistical statements, compa-ny documents, stakeholder surveys and interviews of Orinko.
References for Report Preparation
The Report is prepared in accordance with the Self-Regulatory Guidelines No. 14 forCompanies Listed on Shanghai Stock Exchange—Sustainability Report (For TrialImplementation), the Self-Regulatory Guide No. 4 for Companies Listed on ShanghaiStock Exchange—Sustainability Report Preparation, the Self-Regulatory Guide No. 13for Companies Listed on SSE STAR Market—Sustainability Report Preparation, andUN SDGs, and also taking into account the actual situations of Orinko AdvancedPlastics Co., Ltd. at the present stage.
DisclaimerThe Report contains predictive statements. Except for historical facts, any events andstatements that may or will occur in the future (including but not limited to premis-es, objectives, estimates or business plans) shall be regarded as predictive state-ments. However, the future development of the facts or the trends may di?er fromthe statements due to external variables.
About the Repo
The year 2024 marked a pivotal juncture where the sustainability concept wasfurther integrated in global economic and social development. For Orinko, it'salso a crucial year where the Company honoured prede?ned ESG strategiesand forged ahead towards sustainable development. In the face of unprece-dented changes and accelerated advancement towards the "carbon peakingand neutrality" goals, we ?rmly believe that ESG is not only a "ballast" forenterprises to tackle the challenges, but also a "compass" guiding high-qualitydevelopment.As an explorer and practitioner in the new materials industry, Orinko is keenlyaware that an enterprise's values have long transcended the economic dimen-sion, embodying instead the enterprise's harmony with the environment,progress with the society, and alignment with the times. In 2024, we furtherincorporated the ESG concept into the Company's strategic plans, remainedcommitted to the mission of 'facilitating customers' success with innovativematerials and creating a green life for mankind', and built a sustainabilitysystem comprising environmental, social and governance dimensions.In terms of environmental protection, guided by the "carbon peaking andcarbon neutrality" goals, we drove green and low-carbon transition across thewhole chain from R&D to production and operation. By conducting annualgreenhouse gas inventory and veri?cation, we precisely identi?ed the majorsources of carbon emissions, and advanced optimization of the energy struc-ture and upgrading of production processes. Meanwhile, the Company furtherincreased input in the R&D of renewable materials, established a whole indus-trial chain for RCR materials, and formed a closed loop for recovery, recyclingand application, contributing to the green transition of the economy andsociety.In terms of corporate governance, we consolidated the foundation of develop-ment through regulated and transparent operations, tightened internalcontrol and risk management, and ensured e?cient and compliant deci-sion-making. Through diverse channels such as information disclosure andinvestor surveys, we built a bridge of mutual trust with shareholders, custom-ers and employees. We fully acknowledge that outstanding governance capa-bilities serve as the guarantee for an enterprise's sustainable development, aswell as the core competence for the enterprise to win market trust.In terms of social responsibility, we enabled social values through ahuman-oriented approach. Employees are our most valued asset. In 2024, we
Message from Chairperson
Charting the course for ESG development with a strategic visionand building a new paradigm for sustainable development
Globally, ESG development is moving from a stage of concept advo-cacy to one of implementation. Chinese enterprises are engaging inglobal sustainability governance with a most positive stance.Upholding a global vision of "serving the world with new materials",Orinko remains committed to its responsibilities during the processof internationalization.On one hand, we actively aligned with international ESG standards,and re?ned our management system and information disclosuremechanism, to boost our global competitiveness. On the otherhand, relying on the "dual circulation" development pattern, weestablished low-carbon industrial alliances with partners at homeand abroad, sharing experience in carbon reduction and driving thegreen transition of global value chains. We are deeply aware that inthe era of globalization, an enterprise’s sustainability capabilitiesare not only the "golden name card" of its brand, but also an import-ant testimony to the country’s industrial competitiveness.Looking ahead, we will pursue a more strategic perspective and takemore practical steps, further enhancing ESG management, incorpo-rating ESG requirements into our strategic decisions, businessprocesses and corporate culture, and forming a regular and institu-tion-based model of sustainable development.
Painting a blueprint for sustainable development witha global vision and ful?lling our new responsibilities asa Chinese enterprise
Conclusion: Building a century-old enterprise throughESG endeavours
continued to re?ne the talent training system, established awhole-lifecycle mechanism for selecting, cultivating, using andretaining talents, and helped employees achieve both career valuesand personal growth. Meanwhile, we actively engaged in charitableactivities, and practiced our responsibilities as a corporate citizenthrough student aid, assistance and community care initiatives, tomake our achievements in development bene?t more groups.Conquering sustainable development challengesthrough innovations and pioneering a new path forindustry transformation
Li Jianyi
Chairperson
There is no end to the path of ESG, but one fresh starting point afteranother. Our practices in 2024 convince us even more that onlywhen an enterprise closely combines its own development withnational strategies, global trends and human well-being can itunleash enduring vitality beyond the commercial dimension.Ushering into a new historical stage, we will adhere to the ESGconcept, protecting the waters and mountains through environmen-tal governance, promoting a better life by ful?lling our social respon-sibility, and staying true to our original aspiration in governancetransformation.Thank you!
As a strategic emerging industry in China, new materials representboth a frontier arena for technological innovation and a critical ?eldfor green transition. In 2024, guided by the ESG concept, we ful?lledour responsibilities by driving technological breakthroughs andengaging in industrial collaboration.In terms of the innovation of green technologies, the Company,focusing on areas like new energies and high-end manufacturing,developed a number of energy-e?cient and environment-friendlymodi?ed materials, enabling downstream customers to developlightweight and low-carbon products. For example, the lightweightmaterials applied to new energy vehicles lower carbon emissionswhile enhancing battery duration; the environment-friendly?ame-resistant materials applied to electronics and electrical appli-ances reduce the use of hazardous substances from the source.These technological outcomes have not only created value forcustomers, but driven the upgrading of industrial chains towardgreener ones.In terms of digital transformation, we advanced the building of"smart factories". We applied an intelligent production and manage-ment system to achieve real-time energy consumption monitoring,dynamic resource e?ciency optimization, and a signi?cant reduc-tion in energy consumption per unit of output. Meanwhile, we lever-aged digital tools to build a carbon footprint management systemacross product lifecycles, providing customers with transparentenvironmental performance data, and empowering the building of agreen supply chain ecosystem.We ?rmly believe that only by deeply integrating our innovationgene with the ESG concept can we open up new horizons amid thechanges and turn challenges into opportunities.
2024
About Orinko
Company Pro?le ??Corporate Culture ??Development Course ??
Business Layout ??Globalised Services ??Honours and Awards in ??
2024 Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Company Pro?le
Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
The Company's main products include modi?ed materials, special-purpose engineering materials, environ-ment-friendly high-performance PCR materials and multifunctional membrane materials, etc., and are applied in awide range of national pillar industries and emerging industries, such as automotives, home appliances, new energy,consumer electronics, electronic and electrical products, AI, healthcare, rail transit, home furnishing & building mate-rials, and security protection.Committed to the mission of "facilitating customers' success with innovative materials, and creating a green life formankind", Orinko provides high-quality products and exceptional services for global customers with a good reputa-tion, continuous innovations and a stable quality, creating a green life for mankind.
Orinko Advanced Plastics Co., Ltd. (hereinafter referred to as "Orinko") is a nationalhigh-tech enterprise, the ?rst modi?ed materials company listed on the STARMarket, as well as one of the largest advanced material enterprises with the widestcustomer coverage in China. As a new materials company operating globally, Orinkohas set up seven production bases in Hefei, Anqing, Foshan, Chongqing, Wuhu andWeifang in China and Chonburi Province in Thailand, as well as a global R&D centrein Shanghai. Through the robust production network and technical service system,the Company provides global customers with more precise, accessible and timelyprofessional services and integrated material solutions.
2024 Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Corporate Culture
Become a global leader in the advanced materials industryVision
Facilitating customers' success with innovative materials, and creating agreen life for mankindMission
Customer ?rst, open learning, reform and innovation, cooperation andstriving, honesty and pragmatismCore values
Simple interpersonal relationships, candid communication, opennessand inclusiveness
Organizational atmosphere
Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Development Course
2008-2024
The Company was incorporatedand o?cially started business inthe ?eld of new materials.
The Company was quali?ed as a nationalhigh-tech enterprise.The Company was awarded the title of aninnovation-oriented enterprise.The Company established a postdoctoralworkstation.Hefei Industrial Park Phase II was completed.
The Company was listed asa national enterprise tech-nology centerShanghai Research Insti-tute was put into operation.It acquired GuangdongYuanrong to operate in theSouth China market.
The Company was listedon the SSE STAR Market(stock code: 688219).
Orinko New Energy Company wasestablished to expand into the ?eld ofnew energy battery separators.
Hefei Industrial Park was completedand put into operation.
The new base in Hefeiwas completed andput into operation.
Orinko Advanced Plastics Interna-tional Co., Ltd. was establishedand set up a subsidiary in Thai-land to promote the Company’ sprocess of internationalization.A new base in Anqing was com-pleted and put into operation.The special nylon synthesis basein Shandong was put into trialoperation, integrating synthesisand modi?cation industrialchains.
Orinko Environmental Tech-nology (Anhui) Co., Ltd. wasestablished as a joint ven-ture to drive presenceacross the PCR industrialchain in all aspects.The Company completed thejoint-stock system reform.Chongqing Orinko was estab-lished to operate in the South-west China market.
Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Business Layout
Service
areas
Servicepurpose
Productapplication
Productsand services
Clothing
FoodHousing
Transpor-
tation
Orinko Advanced Plastics Co., Ltd. is a national high-tech enterprise,the ?rst modi?ed materials company listed on the STAR Market, aswell as one of the largest advanced material enterprises with thewidest customer coverage in China.
Orinko provides specialised, innovative and e?cient products and services for global customers, creating a green life for mankind.
Modi?ed new materialsHealthcareSecurityprotectionHumanoidrobotsHydrogenenergy
New energyElectronic andelectrical productsHome furnishing andbuilding materials
Low-altitudeeconomyEnergy storage
HomeappliancesConsumerelectronicsRail transitAIData centercooling
Automotives
Environment-friendly high-performance PCR materials
Special-purpose engineering materials
Multifunctional membrane materials
Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Globalised Services
Guangzhou
ChongqingShanghaiAnhuiShandongJapan
Thailand
Europe
North America
Global R&D Centre
ShanghaiSynthesis baseWeifang, Shandong
Domestic modi?cation R&Dand production base
Eastern areas: Hefei and Anqing, AnhuiWestern areas: Tongliang, ChongqingSouthern areas: Foshan, Guangdong
Overseas presence
Southeast Asia (Chonburi Province in Thailand)Japan and South Korea (Tokyo, Japan)North America, Europe (planned)Separator base
Wuhu, Anhui
Environmental, Social and Corporate Governance (ESG) RepoAbout Orinko
Honours and Awards in 2024Signi?cant awards and honors received by Orinko and its subsidiaries in 2024:
National Green Factory
A National Specialised andSophisticated "Little Giant"Enterprise Producing Noveland Unique Products
A National High-Tech
Enterprise
A Technology-Oriented SME
A Technological InnovationDemonstration Enterprise in
China's Petroleum andChemical Industry
An Intelligent Factory
in Anhui Province
A Green Factory inGuangdong Province
A Pilot Base (Platform)for the Commercialisa-tion of TechnologicalResults in Hefei
A Technological InnovationCentre in Tongliang District,
ChongqingOne of the Top 10 NewMaterial Industry Leaders in
Anhui Province
One of the Top 100 PrivateEnterprises in Foshan
One of the Top 100
Manufacturers in
Anhui Province
One of the Top 100Manufacturers in FoshanOne of the Top 500
Manufacturers inGuangdong Province
An Outstanding PrivateEnterprise in Anhui Province
Sustainable DevelopmentManagement
Sustainable Development Management
2024 Environmental, Social and Corporate Governance (ESG) Repo
ESG Strategy ??ESG Governance ??Communication with Stakeholders ??Evaluation of Materiality Issues ??
ESG Strategy
ESG Core Concept and Strategic ObjectivesWith "creating innovative materials to drive green development and harmony with nature" as the ESG mission, Orinko deeplyintegrates the ESG concept with the carbon neutrality goal, and strives to build an ESG value system featuring "environmentalsustainability, co-growth with society and high-standard governance". Through systematic ESG strategic planning, the Companyaims to be a benchmark of ESG practices for the global new materials industry, with speci?c objectives including:
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
Medium and long-term objectives(2028-2035 and before 2050)Short-term objectives
(2025-2028)
ESG
O?cially put into operation the Strategy and ESG Committeeunder the Board of Directors, include the carbon neutrality goaland climate risk management into the decision-making agenda ofthe Board of Directors; signi?cantly enhance the transparency ofESG information disclosure; and continuously release the annualESG report and the special TCFD report.
Governance upgrade
In 2028, reduce energy consumption per unit product by 15% andgreenhouse gas emissions (Scope 1 + Scope 2) by 20% when com-pared with 2025, and increase the proportion of green products(low-carbon modi?ed materials, PCR renewable materials) to theoperating income to 30%; complete the annual greenhouse gasemission inventory and veri?cation, and build a carbon footprintmanagement system covering the whole value chain.
Environmental transformation
Ensure a 100% employee training coverage, over an 80% talentretention rate in key posts, and zero signi?cant safety accident;build at least four industry-leading "demonstration factories ofgreen manufacturing"; and ensure a 100% ESG compliance auditrate across all suppliers.
Social values
The Board of Directors will continuously supervise the Company'sprogress towards ESG objectives, include the completion of ESGobjectives into the ESG performance assessment, and continuous-ly disclose progress of relevant core issues in the annual ESGreport and TCFD report; participate in the formulation of interna-tional/domestic green standards, and become a member of theUnited Nations Global Compact.
Governance benchmark
In 2035, reduce the carbon emissions in its operations by 30% from2025, and improve the proportion of clean energy to total energyconsumption to 30%; form a closed loop of mass circular economyoperations, and bring the proportion of renewable materials tooperating income to more than 20%.
Environmental leadership
Keep the ratio of R&D input above 5%, raise the self-su?ciency rateof key technologies to above 80%, become a core supplier oflow-carbon materials in areas like new energy vehicles, PV, andenergy storage, enable an employee satisfaction rate of over 90%,and ensure annual public welfare input equivalent to 0.5% of netpro?ts or more, covering at least ?ve community environmentalprotection and education programs.
Social impact
ESG StrategicDirections
ESG Strategic Vision
Green manufacturing
and improvementof energy e?ciencyCircular economy and
material innovation
Employee developmentand rights protectionResponsibility forcustomers andcommunities
ESG governance structure of the listed companyCompliance management and transparency improvement
Soc
i
a
l
:
H
uman
ce
n
t
ric
i
t
y
and
co-creat
i
on
of
v
a
luesGovernance:
Transparen
c
y,
compliance,
and
strategic
c
ollaboration
and
circular
economy
Environmental:
Low-carbon
m
a
nu
fa
c
tu
ri
n
g
Orinko views the ESG strategy as a key engine for the restruc-turing of core competence, leads environmental transforma-tion with the carbon neutrality goal, deepens social values witha human-centric approach, and reinforces the foundation ofdevelopment through transparent governance. Going forward,the Company will continue to strengthen the pattern of "tech-nological innovation + industrial collaboration + globalizedoperations", forge di?erentiated advantages in areas like newenergy materials and circular economy, provide global custom-ers with more sustainable products and services, and empowerthe realization of "carbon peaking and carbon neutrality" goalsand the sustainable development of humanity.
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
ESG Strategic Path: Phased Implementation and Capability Building
Complete the setup of the Strategy and ESG Committeeunder the Board of Directors, develop the ESG ManagementManual, and include the carbon neutrality goal andresponse to climate risk into the Company's articles of asso-ciation and business processes; conduct basic ESG diagno-sis, formulate improvement plans for weak links in the gov-ernance structure and carbon emission management, andensure the full coverage of ESG related systems by 2028.Improve the "core path of carbon reduction", conduct aninventory of Scopes 1-3 emissions in accordance with theISO 14064 standards, complete the setting of the carbonneutrality strategic goal and path planning, and make clearthe carbon reduction objectives and schedule under thepath of limiting the rise of global temperature to 1.5°C.
Stage of consolidating governancecapability (2025-2028)
Ensure continued production and delivery at the green pro-duction base in Thailand, establish R&D centres and produc-tion bases in North America and Europe, and meet localcarbon emission-related compliance requirements (such asthe CBAM of EU); improve the proportion of overseas opera-tions to total operating income to 20% in 2035, and build aglobalised green supply chain.Establish the "Low-Carbon Materials Institute", and drivebreakthroughs in the synthesis of bio-based materials andhigh-value utilization of waste plastics in collaboration ofuniversities and research institutes; in 2035, realise a R&Doutcome commercialisation rate of over 80%, and increasethe number of new patents by more than 100, at least 50%of which are related to green products.
Stage of acceleratedgreen transition (2028-2035)
Establish the "New Materials Industry ESG Alliance" jointlywith industrial chain partners and peer enterprises to builda green supply chain together; push more than 80% coresuppliers to complete carbon footprint calculation, andform an industrial ecosystem featuring "sharing of technolo-gies, mutual recognition of standards, and sharing ofresponsibilities".Improve the climate-related risk disclosure framework inline with ISSB, TCFD and other applicable international stan-dards, engage in the formulation of international ESG stan-dards, realise carbon neutrality in its operations and valuechain before 2050, become a member of the United NationsGlobal Compact, and improve its premium in the interna-tional market as a green brand.
Stage of ecosystem-wide collaborationand globalization (2035-2050)
ESG Support Measures and Resources Input
Ensure the annual ESG budget is notless than 1% of operating income;prioritise support for the R&D of greentechnologies, building of the gover-nance system, and development ofpublic welfare programs and the digitalplatform for carbon management.
Resources allocation
Research and deploy the ESG data manage-ment platform; integrate modules forcarbon emission accounting, supplier ESGdata, and employee training records, etc.;realize real-time monitoring and dynamicoptimization; and complete integration ofdata across the value chain before 2050.
Digital tools
Raise the awareness of participationamong all employees through internaltraining, themed ESG activities, andpublicity on the carbon neutrality goal;include "sustainable development" intocore values, and foster a top-to-bottomconsensus on ESG practices.
Cultural integration
ESG GovernanceTo systematically enhance the Compa-ny's ESG management capabilities,Orinko established and improved theESG work mechanism, and built an ESGmanagement structure comprising threelevels, namely the decision-makinglevel, management level and executionlevel, in 2024. Speci?cally, at the deci-sion-making level, the Board of Directorsand the Strategy and ESG Committeereview the Company's ESG strategiesand plans, major policies and sustain-able development goals, to ensure thecorporate governance, social responsi-bility and environmental responsibilityare highly aligned with the Company'slong-term development objectives. Atthe management level, the ESG LeadingGroup was set up, the ESG Work O?ceunder which takes charge of the dailycoordination, data management andexternal communication related to ESGwork. At the execution level, the ESGWork Execution Group was establishedacross various centres, functionaldepartments, subsidiaries and businessdepartments, coordinating the imple-mentation of various ESG work withinthe Company.
Board of Directors
Strategy and ESG Committee (to be established)
ESG Leading Group
ESG Work execution group
ESG Work o?ce (R&D Centre)
Centres and functional departmentsCEO O?ce, investment & securitiescentre, audit & legal a?airs centre, qualitycentre, supply chain centre, humanresources centre, R&D centre, processdata & IT centre
Factories and business departmentsHefei factory, Guangdong factory, Anqingfactory, Chongqing factory, membraneproduct company, special-purpose mate-rial company, central research institute,Orinko Environmental Protection
Decision-making levelManagement levelExecution level
ESG management structureESG job responsibilities and division of labour
At the decision-making level, the Board of Directors is thesupreme decision-making body for ESG work. The Board ofDirectors and the Strategy and ESG Committee are responsiblefor approving ESG strategic directions and objectives, reviewingand deciding on major ESG matters, regularly supervising andinspecting the progress of ESG related matters, implementingthe ESG work requirements imposed by the listed regulator, andproviding support for the Board of Directors in making ESG deci-sions. The Company's Board Chairperson serves as the chairper-son (convener) of the Strategy and ESG Committee, chairingwork of the committee.At the management level, the ESG Leading Group consists of theCompany’s General Manager and other senior executives. It'sresponsible for developing the ESG management system, super-vising the implementation of ESG work, carrying out the ESGwork, and reporting the progress of ESG work to the Board ofDirectors and the Strategy and ESG Committee on a regularbasis. The ESG Work O?ce was set up under the ESG LeadingGroup, with the R&D centre heading the daily coordination andmanagement of ESG related matters.
At the execution level, the ESG Work Execution Group consists offull-time employees assigned by various centres, functionaldepartments, factories and business departments of the Com-pany. It is responsible for the implementation of daily ESG man-agement to ensure the achievement of ESG goals.
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
Communication with Stakeholders
Orinko attaches great importance to the concerns and demands of stakeholders. Through e?ective channels and mechanisms for the communication with stakeholders, the Company conveys and discloses theinformation stakeholders are concerned about in a timely manner, and listens to their feedback and suggestions. Based on comprehensive analysis and surveys, Orinko identi?ed its main stakeholders as share-holders and investors, regulators, exchanges and rating agencies, customers, suppliers, contractors and other partners, communities, public society and media, employees, non-governmental organizations(NGOs), and industrial associations.
Economic performanceRisk managementManagement structureOperation complianceR&D innovation
Regulators, exchanges
and rating agenciesRegulators, exchangesand rating agencies
General meetings of shareholdersRegular report disclosureDaily communications(telephone, email and meeting)Compliance managementLegal employmentBusiness ethics
Information disclosure Compliance trainingQuestionnaire surveysCustomer privacy and information securityCustomer servicesProduct quality and safetyProduct performance
Global service platformsCustomer visitsQuarterly operation communication meetingsCustomer satisfaction surveysCustomersCustomers
Sustainable procurementBusiness ethicsResponsible production
Regular evaluation and reviewSupplier conferencesDaily communications(telephone, email and meeting)Suppliers, contractors
and other partnersSuppliers, contractors
and other partners
Main stakeholdersExpectations and demandsMain communication channelsMain stakeholdersExpectations and demandsMain communication channels
Shareholdersand investors
Charity and public welfareProtection of employee rights and interestsEcological environment protectionResource recycling and waste disposal
Community project cooperationCharity and public welfare activitiesDaily communications(telephone, email and meeting)Employee health and safetyProtection of employee welfare rightsand interestsEmployee training and development
Employee communication groupsCorporate email box for employee feedbackCorporate service account for employee feedbackEmployee satisfaction survey questionnairesWater resource managementEnergy managementResponse to climate changeWaste managementLegal employment
Information disclosureDaily communications(telephone, email and meeting)
Scienti?c and technological innovationand intellectual property protectionProduct management
ExhibitionsInternational standard formulationAcademic exchange activitiesIndustrial association meetings
Communities, publicsociety and media
EmployeesEmployees
NGOsNGOs
Industrial associationsIndustrial associations
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
Evaluation ofMateriality Issues
To better understand stakeholders' core expectations and demands and make Orinko's ESG report more target-ed and material, the Company carried out the ESG work in three stages, namely issue identi?cation, issuesurvey and issue screening.
Issueidenti?cationstage
Issue survey
stage
Issue analysis
stage
Issuescreening
stage
Analysis of industrial characteristics: The Company took industrial characteristics into full consideration, including environmentalissues like energy consumption and waste generation arising from the production process as well as social and governance issues likeproduct quality and supply chain management.Alignment with standards and policies: With reference to relevant domestic and international standards, macro policies and industrialtrends, such as national environmental protection policies, carbon peaking and carbon neutrality goals, and industrial speci?cations,the Company identi?ed the ESG issues related to the industry, such as response to climate change, energy management, circular econo-my, product quality and safety, and compliance operation.
Evaluation of ?nancial materiality: The Company analysed the impacts of various ESG issues on the Company's ?nancial conditions,operating results, cash ?ows, ?nancing modes and costs. For example, improved energy management can lower production costs andenhance pro?tability; response to climate change can help the Company avoid policy risk and market risk, and ensure sustained andstable operation.Evaluation of impact materiality: The Company evaluated the impacts of its performance in various ESG issues on the economy, soci-ety and environment. For example, circular economy practices can reduce resource waste and environmental pollution, exerting positiveimpacts on the society and environment; product quality and safety concern consumers' health and rights, having signi?cant impacts onthe society.Identi?cation of material issues: Based on comprehensive analysis and ranking results, the Company identi?ed the ESG issues of?nancial materiality and impact materiality to Orinko. These issues, such as response to climate change, energy management, circulareconomy, product quality and safety, and compliance operation, became the contents highlighted in the ESG report.Dynamic adjustments: The Company regularly reviewed and evaluated the materiality of the issues, and adjusted the scope and focus-es of the material issues in time based on the changes in internal and external environments, changes in stakeholder expectations, andits own developments, to ensure Orinko's sustainable development strategy is consistently aligned with actual conditions.
Stakeholder surveys: The Company collected the opinions and suggestions of internal and external stakeholders through interviewsand focus groups, etc. For example, it communicated with suppliers on the requirements for sustainable procurement, and communi-cated with employees on their expectations for career development and working environment, to fully understand the concerns andexpectations of di?erent groups for ESG issues.
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
2024 Environmental, Social and Corporate Governance (ESG) RepoSustainable Development Management
Material Issue Evaluation Matrix for the ESG Report
Evaluation Results of the Material Issue MatrixMaterial issues
Financial materiality
Impact materiality
Environmentalcompliance managementCarbon neutrality strategyPollution andemission managementCircular developmentWater resourcemanagementResponse toclimate changeInnovation ofgreen products
Product quality and safetyR&D innovationSupplier managementCustomer serviceLabour managementEmployees' occupationalhealth and safetyEmployee trainingand career developmentEmployee carePublic welfareand charity
Listed company governanceRisk managementand internal controlAnti-corruption and integrityPrivacy and data securityIntellectual property protectionDigitalisation
Environmental dimensionSocial dimensionCorporate governance dimension
Making Innovations,Empowering Industrial Development
Making Innovations, Empowering Industrial Development
R&D Innovation ??Green Products and Solutions ??Intellectual Property Protection ??
2024 Environmental, Social and Corporate Governance (ESG) Repo
R&D InnovationR&D Innovation MechanismThe Company upholds innovations, and continuouslyincreases input of resources in R&D to drive the develop-ment of new technologies and products. The Company hasin place a professional and experienced R&D team, whichconsists of experts and technical talents in multiple disci-plines such as polymer materials and chemical engineer-ing. The team members possess profound theoreticalknowledge and rich practical experience, laying a solidintellectual foundation for R&D innovation. In terms ofindustry-academia-research collaboration, the Companymaintains long-term and stable partnership with severaluniversities and research institutions. By jointly carryingout research projects and co-establishing R&D platforms,among other means, the Company integrates resourcesfrom all sides, broadens R&D perspectives, and acceleratestechnological innovation and the commercialisation ofresearch outcomes. In 2024, the Company carried out theproject of "Design, Preparation and Application ofNew-type High-performance Composite PolypropyleneFibre Reinforced Composites for Automobiles" jointly withthe Anhui University.The Company has established a sound innovation incentivemechanism to encourage employees to actively engage inR&D innovation. The Company has set up a special innova-tion award fund, providing considerable material awardsand spiritual incentives for the teams and individuals whohave achieved outstanding results in R&D innovation, tofully stimulate their enthusiasm for innovation. Meanwhile,the Company champions a culture of innovation, advocatesthe innovation concept de?ned by openness, inclusiveness,and cooperation, and encourages employees to try andinnovate, o?ering an enabling culture and environment forR&D innovation.
The Company makes constant innova-tions in new materials and new technolo-gies. Meanwhile, it increases investmentsand e?orts in the R&D of cutting-edgetechnologies, and converts novel ideasinto product solutions in line with cus-tomer demands, to break foreign monop-oly, replace imported products, andadvance towards advanced technologiesin the industry.
Based on pain points of the industry and customerdemands, the Company follows market trends, and givesfull consideration to customer demands. Through closecooperation with customers, it provides targeted productsolutions to solve pain points of the industry and meetcustomer demands.We continuously improve the serviceability and innova-tiveness of our products, and create new green materialtechnologies.
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
R&D FrameworkR&D SystemThe R&D framework consists of basic research,applied research, and development research.
With a customer-centric approach, the Company has established a three-level R&D system to ensure swift response to customerdemands. It has also planned for the development of material technologies in the next 3-5 years, and put in place complete lifecyclemanagement for product technologies.Basic research serves as the cornerstone. New theo-ries and principles are explored to discover newscienti?c knowledge, and provide data support andtheoretical guidance for the invention and creationof new technologies.Applied research is the extension to basic research,and connects scienti?c research with the market.The research on how to apply the new knowledgeand theories discovered in basic research to speci?cgoals aims to open up ways for the speci?c applica-tion of the outcomes of basic research and convertthem into practical technologies.Development research aims to apply basic researchand applied research in product development andproduction practices. It is the central link to convertscience into productivity, including the research anddevelopment of industrialisation technology andindustrial technology.
At the core of the R&D system, it focuses onthe R&D and disruptive innovation of frontiertechnologies, to establish the Company'stechnological leadership in the industry.Global strategy researchand frontier technology incubation
It focuses on technological accumulation,product platform building and generic tech-nology research, to provide support for theCompany's core technologies.It is responsible for customising solutions toswiftly address market demands, andadvancing the commercialisation of techno-logical outcomes.
Core product technologydevelopment and capability platform building
Market-oriented application innovationand solution development
Level 1
Level 2
Level 3
CentralResearchInstitute
R&D Centreusiness UnitSolutionsDevelopmentDepartment
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
R&D Platform Construction
A National EnterpriseTechnology CentreBy National Developmentand Reform Commission
A National CNAS
Laboratory
By China National AccreditationService for Conformity Assessment
A National-LevelPostdoctoral Workstation
By National Post-DoctoralAdministrative Committee
An Industrial Technology Innovation Centreof Petroleum and Chemical Industries
By China Petroleumand Chemical Industry Federation
An Engineering Research Centre
in Anhui ProvinceBy Anhui Provincial Developmentand Reform Commission
An Enterprise R&D Centre
in Anhui Province
By Anhui Provincial Departmentof Science and Technology
An Enterprise Technology Centre
in Guangdong Province
By Guangdong Provincial Departmentof Industry and Information Technology
An Enterprise Technology Centre
in Guangdong Province
By Guangdong Provincial Department
of Science and Technology
An Enterprise Technology Centre
in Chongqing
By Chongqing Municipal Economicand Information Technology Commission
A Small and Medium-sized EnterpriseTechnology R&D Centre in ChongqingBy Chongqing Municipal Economicand Information Technology Commission
An IndustrialDesign Centre in Hefei
By Hefei Municipal Economicand Information Commission
A Technological Innovation Centre
in Tongliang DistrictScience and Technology Bureauof Tongliang District, Chongqing
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
R&D Capability BuildingWhole-process technological empowerment and one-stop material solutions:
Intelligent simulation prediction
?Mold?ow + CAE dual-core simulation platform?Simulation of performance for ?ve majortypes of structure?90% precision in the prediction of productperformance with mould ?ow - structure com-bined simulation
Injection mould design
?Focus on the common problems of
the injection moulding process?Independent mould developmentand reproduction of product defects?39+ sets of veri?cation moulds
Application engineering support
Testing and certi?cation guarantee
Closed-loop mould veri?cation
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
?Multiple injection moulding machines ranging from
450T to 1300T?Basic research on processes and reproduction of
injection moulding defects?A database of 500+ injection moulding defects
?A 23-member moulding support team?A global service network that ensuresarrival at the site within 36 hours?Fast response to market demands
?A national CNAS laboratory?Covering 150+ testing items?Four major testing standards: ISO, GB, ASTM and DIN
Focusing on light weight, low carbon and environmental protection,safety and comfort, intelligence and interaction, Orinko providesintegrated material solutions for the 12 major systems of automotives.Innovative materials for automotivesGreen Productsand Solutions
Orinko pioneered the "ORINKO IMSS" injection moulding technology,which is widely applied to the injection moulding of large thin-wall surfaceproducts, replacing the traditional moulding process for soft surfaces likegenuine skin wrapping, slush moulding and vacuum thermoforming in neg-ative mould, and greatly boosting productivity and product competitive-ness.
Polarity injection-moulded surface for intelligent cockpits
Orinko integrated the long-carbon-chain nylon synthesis and modi?cationindustrial chain, achieving breakthroughs in such areas as new energy cool-ing pipes, fuel pipes, inlet pipes and pipe joints, and breaking foreignmonopoly.Integrated long-carbon-chain nylon industry
Orinko created innovative translucence bumper materials, which featurehigh light transmittance, excellent light di?usion, stable dimensions andhigh weather resistance, delivering to customers intelligent and tech-in-fused products.Innovative translucent bumper materials
Orinko completed the 3500kJ ageing certi?cation and was included in theSAIC General Motors system, designated for the development of exteriortrim panels of pillars, grilles and other components of all vehicle models.High-gloss black PMMA alloy
Focusing on intelligence, premium quality, segmentation, energyconservation & environmental protection, health and safety, andhome aesthetics, Orinko keeps advancing product innovation andupgrading, and provides integrated material solutions for home appli-ances in the whole house.
Innovative materials for home appliances
In the ?eld of basket powder, Orinko independently developed the resinand powder grinding technology, which precisely matches the dip mouldingprocess, enables replacement of imported products and takes the lead inthe domestic market.Thermoplastic powder coatings for dishwasher baskets
From mould ?ow analysis to customization of colour e?ects, and from mate-rials to processes, Orinko delivers domestically leading green and low-car-bon spray-free materials for home appliances.Spray-free materials
Orinko provides renewable and low-carbon PP, ABS and PC material seriesacross the ecosystem, empowering customers to achieve the goal of reduc-ing carbon emissions from products.Renewable materials
Orinko passed the long-term refrigerant immersion and precipitation test,as well as relevant GMCC tests, breaking the monopoly of imported materi-als on the customer side.The ?rst refrigerant-resistant PBT material at home
Making Innovations, Empowering Industrial Development
2024 Environmental, Social and Corporate Governance (ESG) Repo
Upholding the mission of "facilitating cus-tomers' success with innovative materials,and creating a green life for mankind", theCompany actively responds to China's"carbon peaking and carbon neutrality"strategy, and embeds the green concepts oflight weight, low carbon, energy conserva-tion, environmental protection, health andsafety, reliability and long service life intothe whole process of product development.Committed to developing green and envi-ronment-friendly materials, the Companyhas launched innovative products includinghalogen-free ?ame-retardant reinforcednylon material, high-?ow thin-wall injectionmoulding P-TPE translucent surface materi-al, which are successfully applied in areaslike new energy vehicles and home appli-ances, addressing key industry challengesand contributing to green and low-carbondevelopment.
Innovative materials for new markets
2024 Environmental, Social and Corporate Governance (ESG) Repo
Focusing on light weight, low density, chemical corrosion resistance,and weather resistance, Orinko continuously develops novel andunique formulations and processes, providing innovative materialsfor new markets such as engineering materials, consumer electron-ics, and new energy.
The highly heat-resistant alloy technology solves the problems related toprecipitation, corrosion and moulding appearance of existing products,guaranteeing safe connections in the new energy ?eld.Halogen-free ?ame-retardant nylon
With the UL746C F1 certi?cation, the materials for outdoor applicationsfeature an RTI of 120℃ and excellent low-temperature resistance perfor-mance (-50℃). They are applied in areas like communication radomes, con-nectors, charging guns, and batteries, etc.PC and alloy materials
Orinko is the only manufacturer in China that can stably supply the wholeseries of low-loss PPE materials with a dielectric constant ranging from 2.6to 9.0, and has been recognised by multiple communication equipmentmanufacturers.Dielectric PPE materials
Orinko integrated the high-temperature nylon synthesis and modi?cationindustrial chain, achieving breakthroughs in areas such as new energy, con-sumer electronics, and LED display, with products leading in the domesticmarket.Integrated high-temperature nylon materials
Lithium-ion battery separator materialsOrinko continuously advances implementation of the lithium-ion bat-tery wet-process separator project, speeds up production of wet-pro-cess separators with stable quality and excellent performance, focus-es on achieving breakthroughs in the lithium-ion battery market, andstrives to become a supplier of new energy materials that can pro-duce a range of functional separators.
Orinko independently designed the ?rst fully domestic 6.5-meter-wide?nished product production line in China, demonstrating full mastery overproduction line iteration and upgrade technologies.Domestic production line
Orinko independently developed the polymerization and coating technolo-gy for para-aramid ?bre. The product features high temperature resistance(with a ?lm-breaking temperature of over 350℃), low speci?c gravity, oxida-tion resistance, and sound wettability, improving the energy density andsafety performance of batteries.
Aramid ?bre coating materials
Orinko independently designed the online coating equipment, whichachieves integrated production, shortens the production cycle and boostsproduction e?ciency.Online coating process
Based on the conventional ceramic formulation, Orinko improved theheat-resistant performance of heat-sensitive auxiliary materials, andincreased the product's heat resistance temperature by another 20-50℃.High-temperature resistant ceramic coated separator
Making Innovations, Empowering Industrial Development
Intellectual Property Protection
Since its establishment, Orinko has viewed intellectual property protection as a major strategy guiding its development.The Company has continuously improved the intellectual property management system, re?ned intellectual propertymanagement policies, and enhanced the capabilities in creating, applying, protecting and managing intellectual proper-ties, to provide strong support for its innovation and development.
Orinko has established a special department for intellectualproperty management, as well as dedicated IP managementpositions, including the director of intellectual property andintellectual property management specialists, to take fullcharge of the application for and management of the Compa-ny's intellectual property rights such as patents, trademarks,software copyrights. The Company has formulated andimproved a series of intellectual property management policies,including the Patent Management Measures, to specify the cre-ation, application, protection and management of intellectualproperties, and put in place a long-term management mecha-nism, to ensure the orderly advancement of intellectual proper-ty related work.
Building of the IntellectualProperty Management System
Intellectual Property Creation
and Quality ImprovementThe Company highlights intellectual property motivation andthe building of an innovation culture. In accordance with thePatent Management Measures and relevant national regula-tions, it gives commendations and awards to the employeeswho complete inventions, creating a sound atmosphere forindependent innovation. Meanwhile, the Company has in placea classi?ed and tiered system for patent protection, and imple-ments scienti?c, tiered and classi?ed protection of patents incompliance with the Measures for the Tiered and Classi?edManagement of Patents, re?ning management of patents andenhancing the quality and values of patents.
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
Orinko actively expands international markets, havingapplied for one patent through the Patent CooperationTreaty (PCT) system, and applied for and been grantedthree registered trademarks through the Madrid trade-mark registration system, which further enhances its capa-bility in deploying intellectual properties worldwide. Also,the Company actively engages in the formulation of inter-national standards, which ampli?es its in?uence and voicein the global industry.
International Deploymentof Intellectual Properties
IntellectualPropertyRightsIntellectualPropertyRights
AuthorisedPatentsAuthorisedPatents
Participation in theformulation / revisionof national standardsParticipation in theformulation / revisionof national standards
IndustrialStandardsIndustrialStandards
GroupStandardsGroupStandards
2024 Environmental, Social and Corporate Governance (ESG) RepoMaking Innovations, Empowering Industrial Development
As of the end of 2024, Orinko was authorised 382 intel-lectual property rights, including 274 patents, on acumulative basis, a testimony of the Company's strongcapabilities in technological innovation. The Companyis also an active participant in the formulation of stan-dards, engaging in the development/revision of 26national standards, two industrial standards, and fourgroup standards, and contributing to the technologicalprogress of the industry.
Intellectual Property Statisticsand Standards Formulation
Intellectual Property Achievements
and HonoursFor its remarkable achievements in the intellectual prop-erty ?eld, Orinko was granted many honours at the stateor local level. The Company was recognised as a "NationalIntellectual Property Demonstration Enterprise", honouredthe "China Outstanding Patent Award" and "Anhui PatentSilver Award", and named as an " Intellectual PropertyDemonstration Enterprise of Guangdong Province" and an" Intellectual Property Competitive Enterprise of Chongq-ing", among others. In addition, the Company also wonlocal honours including the "Patent Intensive Product ofHefei", "Patent Navigation Project of Hefei", and "High-Val-ue Patent Cultivation Project of Hefei", which further con-solidated its technological leadership in the industry.
Maintaining Steady Growth,Upholding Value Creation
2024 Environmental, Social and Corporate Governance (ESG) RepoMaintaining Steady Growth, Upholding Value Creation
Product Quality and Safety ??Supply Chain Management ??Customer Service ??
Product Quality and Safety
2024 Environmental, Social and Corporate Governance (ESG) Repo
Orinko has obtained certi?cations for ISO 9001, ISO/IEC 17025, andIATF 16949 quality management systems. Adhering to the require-ments of these systems, it implements comprehensive quality man-agement, ensuring meticulous control over product safety andquality from product initiation and design to production and sales.Additionally, a full set of production management measures hasbeen established to control all factors during production, ensuringproduct quality and delivery meet customer expectations. To e?-ciently satisfy customer needs, the Company has set up an internallaboratory accredited as a National Enterprise Technology Centerand a CNAS-accredited laboratory, providing comprehensive prod-uct and application technology services to customers.
Product Quality System Development
ISO 9001:2015 Quality Management SystemIATF 16949:2016 Automotive Quality Management SystemISO 45001:2018 Occupational Health and Safety Management SystemISO 14001:2015 Environmental Management SystemIECQ QC 080000:2017 Hazardous Substance Process Management SystemIntellectual Property Management System
National ISO/IEC 17025 accredited laboratoryLaboratory accreditation by SAIC Motor, Ford, BYD, JAC Motors, FAW-Volk-swagen, and othersJoint laboratory established with Guangzhou Institute of Chemistry,Chinese Academy of Sciences
Laboratory Accreditations
System Standards
Hardware Facilities
Leading quality inspection and R&D equipment, and advanced and customized production equipment
Maintaining Steady Growth, Upholding Value Creation
2024 Environmental, Social and Corporate Governance (ESG) Repo
Eight major performance testing equipment
Photoelectricperformance testing
Mechanicalperformance testingMaterial reliabilityassessment
Flame retardantperformance testing
Material composition
analysis
Rheologicalperformance testing
Thermal performance
testing
Emission testing
Maintaining Steady Growth, Upholding Value Creation
Product Quality PolicyOrinko has established the Quality Management Manual and adheres to the qualitypolicy of "putting quality ?rst, making continuous improvement, and providing stableproducts and satisfactory services to customers".Orinko's Commitments:
Orinko regards quality as its life andalways puts quality ?rst, with contin-uous e?orts to improve product andservice quality.
Orinko is customer-centric, respondingto customer requirements quickly ande?ectively, and continuously improvingcustomer satisfaction.
Do things right the ?rst time. TheCompany does not accept non-con-formance, produce non-conformingproducts, or allow non-conformanceto pass through.
All employees are involved in continu-ous improvement and the Company'squality culture building to ensure thee?ectiveness of the quality manage-ment system.
Zero DefectsFull Employee Participation
Quality FirstCustomer-Oriented
2024 Environmental, Social and Corporate Governance (ESG) Repo
Orinko enhances product quality fromthe following four dimensions:
Orinko has developed processes suchas the New Product DevelopmentManagement Process, the ChangeManagement Process, the Unquali?edProduct Management Process, theIncoming Material Inspection Manage-ment Process, the Production ProcessInspection Management Process, andthe Product Delivery Inspection Man-agement Process, covering qualitymanagement throughout the entireproduct lifecycle.
Improve qualitymanagement processes
Orinko has developed the QualityPerformance Management Mea-sures, quantifying quality objectivesand conducting regular assessmentsand feedback.
Orinko actively promotes standard-ized management, including rawmaterial standardization, processstandardization, measurementsystem standardization, and prod-uct development process standard-ization.
Orinko gains deep insights intocustomer needs, actively promotescontinuous improvement, and con-tinuously enhances the ability tomeet customer requirements.
The Company's quality policy de?nes continuous improvement as the drivingforce for constantly enhancing the ability to meet customer requirements. As akey priority of Orinko's quality culture, continuous improvement has been em-bedded into the top-level design logic of the Company's quality strategy.
Maintaining Steady Growth, Upholding Value Creation
Product Traceability Management
Orinko promotes product traceability management with digital transformation as the core driver. It has achieved aleap in end-to-end supply chain traceability through technological upgrades, process restructuring, and ecosys-tem collaboration, building an e?cient and transparent technological foundation for quality control, riskresponse, and customer trust.Orinko has fully implemented a digital traceability platform, connecting the entire lifecycle data chain from rawmaterial procurement, production and processing, warehousing and logistics to end customers. This enables pre-cise management through "one item, one code", with traceability granularity re?ned to the single-piece or batchlevel. The real-time data collection rate has improved to 98%, and key node information is uploaded to the block-chain to ensure data integrity and full-process reliability. System response speed has been signi?cantly optimized,reducing the average traceability time for quality issues from 2 hours to 3 minutes, with a 100% accuracy rate inidentifying a?ected batches.
On the technical front
The traceability system has expanded its coverage from core products to theentire product line and 180 suppliers, and achieved deep integration with thePDM, SCRM, ERP, and MES systems, facilitating quality collaboration across thesupply chain. To meet customer demands, Orinko has developed a mobile visualtraceability interface, which allows customers to instantly access over 20 keypieces of information, including product inspection reports, process parameters,and logistics tracking, simply by scanning QR codes. This has led to a 50%year-on-year reduction in process handling time and a 97% customer satisfactionrate for traceability inquiries. Additionally, traceability data is used to inform andimprove R&D and production, helping to identify and optimize 15 process bottle-necks, which contributed to a 1.2% reduction in product defect rate.In the future, Orinko will further integrate the traceability system with various sce-narios and explore a "quality - environment - social responsibility" integratedtraceability system, continuously setting the industry benchmark through trans-parency and digital capabilities.
On the application front
50%
Reduction in processhandling time
97%
Customer satisfaction ratefor traceability inquiries
1.2%
Reduction in productdefect rate
Strengthen qualityperformance management
Promote standardized
management
Customer-oriented
2024 Environmental, Social and Corporate Governance (ESG) RepoMaintaining Steady Growth, Upholding Value Creation
Nonconforming ProductControl and Management
Product Quality Enhancement Initiatives
The Company has formulated proceduressuch as the Incoming Material InspectionManagement Process, the Production Pro-cess Inspection Management Process, andthe Product Delivery Inspection Manage-ment Process to ensure strict quality veri-?cation for raw materials, processes, and?nished goods. Leveraging digital intelli-gent systems, it has realized the preload-ing of quality standards and automaticjudgment, ensuring the reliability of prod-uct quality. For in-process quality control,methods such as ?rst inspection, in-pro-cess inspection, and ?nal inspection areappropriately applied based on productcharacteristics. Statistical knowledge andtools are utilized to e?ectively detect andreduce process variation.For any nonconforming product identi?edduring raw material, in-process, or?nished product inspections, the Compa-ny follows the Unquali?ed Product Man-agement Process to isolate, label, andlock the items in the system. Meanwhile, anonconforming product review process istriggered, where team members jointlyassess the quality risks of the noncon-forming product and provide appropriatehandling recommendations from the per-spective of customer requirements.
In 2024, Orinko's quality management e?orts achieved breakthrough progress in comprehensive quality systematization, digitalization, and company-wide leanactivities, comprehensively supporting the enhancement of product competitiveness and customer satisfaction. Through systematic optimization and innova-tion, the quality management system transitioned from traditional "post-error correction" to a "prevention-?rst, full-process control" model, leading to signi?-cant improvements in core indicators. Speci?cally:
In the future, Orinko will deepen its "comprehensive quality system" strategy, focusing on zero-defect management and quality chain construction. It will con-tinue to drive quality upgrades through technological innovation, providing higher-value products and services to global customers.
The Company reviewed and optimized32 quality control processes coveringR&D, procurement, production, andlogistics, closing management gaps inhigh-risk areas. As a result, the cover-age rate of Process Failure Mode andE?ects Analysis (PFMEA) increasedfrom 75% to 95%.
Standardization development:
A customer quality interaction platformhas been launched, enabling full digitali-zation of the "complaint - analysis - cor-rection - feedback" process. The averagehandling time was reduced from 7 daysto 48 hours, the customer complaint ratedropped by 65% year-on-year, and therecurrence rate of repeat issues reducedto below 3%.
Complaint closed-loop management:
A series of "Lean Improvement" activitieswere conducted, with 800 employeestrained and 256 improvement proposalsaccepted, directly contributing to costsavings of RMB 22.7 million.
Full employee participation:
By introducing the QMS system, key process inspection e?-ciency improved by 50%, defect miss rate dropped to
0.02%, full-chain traceability response time compressed to
3 minutes, and issue location accuracy reached 100%.
Digital empowerment:
Through real-time monitoring with SPC (Statistical ProcessControl) and process parameter optimization, the ?rst-timepass rate of core products rose from 98.2% to 99.6%, reach-ing an industry-leading level.
Breakthrough in ?rst-time pass rate:
Leveraging the SRM system, the Company collaboratedwith suppliers to build a comprehensive quality system.The pass rate of incoming material batches increased by5%, and production abnormalities caused by raw materialswere reduced by 80%.
Supply chain collaboration:
A three-level "red-yellow-green" quali-ty early warning mechanism has beenestablished, intercepting 28 potentialmajor quality risks over the year andachieving the goal of zero major quali-ty incidents.
Risk prevention and control:
System Optimizationand Risk Control
Process Control and E?ciency Improvement
Customer-Orientedand Continuous Improvement
Supply Chain Management
2024 Environmental, Social and Corporate Governance (ESG) Repo
To continuously optimize and improve supplier management, Orinko has built systems such as SRM,QMS, and MIP to implement lifecycle management of suppliers. It closely monitors suppliers' qualityand non-quality system development, mobilizes resources to empower them, and enhances supplychain e?ciency and ?exibility, ensuring stable production. Meanwhile, the Company collaborates withsuppliers in technological innovation to deliver satisfying products and services to customers.Orinko has developed a series of digital intelligent management models to achieve dynamic manage-ment of suppliers from onboarding to process management and exit. Based on category managementneeds, the Company has formulated di?erentiated supplier onboarding rules and daily managementmodels, supplemented by an exit mechanism that promotes the survival of the ?ttest among supplyresources, thereby realizing visualized and transparent management of operations.
Supplier Management
To strengthen dynamic management of suppliers, theCompany has formulated and implemented the Sup-plier Performance Evaluation Management Measures,conducting performance assessments of raw materialsuppliers. This promotes comprehensive improve-ments in supplier capabilities and e?ciency acrossfour key dimensions: product quality, delivery perfor-mance, pricing, and service level, ultimately ensuringthe delivery of satisfying products and services toOrinko's customers.
Supplier Assessment and Performance Evaluation
Maintaining Steady Growth, Upholding Value Creation
The Company's supply chain center orga-nizes monthly supplier performance eval-uations in collaboration with the quality,planning, and ?nance departments. Eval-uation results are categorized as Green+,Green, Yellow, or Red, representing Excel-lent, Good, Average, and Poor, respective-ly, encouraging continuous improvementsin supplier quality and management andensuring stable production.
2024 Environmental, Social and Corporate Governance (ESG) RepoMaintaining Steady Growth, Upholding Value Creation
The Company develops and onboards new suppliers in accordance with the New Supplier Development and IntroductionManagement Measures. Suppliers that meet the requirements are included in the List of Quali?ed Suppliers. The principlesfor evaluating quali?ed suppliers are as follows:
New Supplier Onboarding
Supplier audits include onboarding audits for new suppliersand annual audits for existing ones.
In accordance with the New Supplier Development and Intro-duction Management Measures, Orinko conducts on-siteaudits of new suppliers, covering production workshops, DCSsystem, R&D management, laboratory center, ?re safetyacceptance, warehouses, and logistics and transportation.For any issues identi?ed during the audit, the Company col-laborates with the suppliers to review them and formulatesystematic improvement measures.
Supplier Audits
Quality
Pass ISO 9001 certi?cation or pass a second-party audit, with the audit methodology aligned with processaudit requirements;Pass the on-site audit of its quality capability and achieve a rating of B level or above.
CostMeet the Company's gross margin and payment term requirements.
Delivery
Deliver goods within the speci?ed time (excluding uncontrollable factors), ensuring that the Company cansupply ?nished products to customers without interruption.
Service
Meet rapid response requirements, i.e. arranging dedicated personnel within 24 hours when required.Execute purchase contracts and technical agreements (incorporate technical standards as an annex to thequality assurance agreement, with the same e?ect as the technical agreement), as well as quality assuranceagreements (including quality objectives for the year).Environment
andoccupational
health
Suppliers certi?ed under ISO 14001 Environmental Management System, ISO 45001 Occupational Healthand Safety Management System, and IECQ QC080000 Hazardous Substance Process Management Systemwill receive bonus points and be given priority among suppliers of the same grade.
Onboarding Audits for New Suppliers
Following the Supplier Control Procedure, the Company con-ducts on-site audits of existing suppliers. A score of 80 orabove is required to qualify as a quali?ed supplier. For anyproduct or operational system-related issues identi?edduring the audit, the Company collaborates with the suppli-ers to revise system documents, optimize rules and regula-tions, and introduce new speci?cations, ensuring that 100%of the identi?ed issues are properly addressed.
Annual Audits
2024 Environmental, Social and Corporate Governance (ESG) RepoMaintaining Steady Growth, Upholding Value Creation
Case
2024 Supplier ConferenceOrinko held its 2024 Supplier Conference on January 19, 2025, in Hefei, Anhui Province. Company executives, department heads, and representatives from 129 core suppliers attended the event.During the conference, Mr. Li Jianyi, Chairman of Orinko, emphasized the importance of creating value for customers together with suppliers and highlighted the need to build a healthy ecosystem.His speech covered topics such as establishing strategic partnerships, promoting joint innovation, fostering positive competition, and quickly seizing opportunities. He also stressed the critical roleof product and technological innovation, as well as Orinko's exploration and practices in digital transformation.Five awards were presented at the conference: the Best Growth Award, the Outstanding Supplier Award, the Excellence in Quality Award, the Technological Innovation Award, and the Gold StrategicSupplier Award, recognizing the contributions of outstanding suppliers. In addition, a session was held to reinforce integrity awareness among suppliers and employees. In 2024, Orinko strength-ened its collaboration with leading companies such as Midea, achieving signi?cant business growth. Looking ahead, the Company will continue to focus on the automotive, home appliance, andconsumer electronics sectors while expanding into emerging industries such as smart home, low-altitude economy, and robotics. Orinko will further deepen cooperation with new energy vehiclemanufacturers to meet customers' evolving requirements for material performance, while continuing to deliver high-quality, reliable products and services to home appliance customers.
Customer Service
2024 Environmental, Social and Corporate Governance (ESG) Repo
Orinko is committed to providing customers with comprehensive service experience:
Building Customer Service Capabilities
Maintaining Steady Growth, Upholding Value Creation
End-to-end satisfactionof customer requirementsServing 1000+ customers, theCompany deeply understandstheir pain points and o?ers profes-sional solutions.
In-depth technicalsupport
Full lifecycle technical serviceassurance, from mold trials tomass production and after-salessupport.
Strategic collaborationand sharingOrinko conducts regular follow-upvisits and technical exchanges toco-build a collaborative innova-tion ecosystem.
Fast responsemechanismThe Company o?ers 24/7 quickresponse to customer demands.
2024 Environmental, Social and Corporate Governance (ESG) Repo
Orinko has formulated a series of management measures, including the Customer Complaint Management Measures, and established a CRM-basedcomplaint handling process, ensuring full-process follow-up and closed-loop management from complaint initiation to process tracking, root causeanalysis and corrective action.After-sales services primarily focus on handling customer complaints, with the speci?c process outlined as follows:
After-sales Service
Maintaining Steady Growth, Upholding Value Creation
Verify whether the custom-er-reported issue deviatesfrom the design intent. Clarifythe customer's applicationscenario and assign dedicatedpersonnel to follow upthroughout the entire processuntil closure.
Receive customer feedbackand align information
Hold monthly review andimprovement meetings toaddress high-frequency cus-tomer complaints. For custom-er application scenarios proneto issues, conduct extremescenario simulation during thedesign phase to reduce mis-matches at the source andensure product alignment withcustomer needs.
Knowledge accumulation andcontinuous improvement
In accordance with the 3G (Genba,Genbutsu, and Genjitsu) principle,dispatch after-sales engineers to thesite for handling. Recreate the cus-tomer's usage scenario and assist inresolving the issue. Alternatively,clearly describe the problem using5W2H and initiate ITR for problemimprovement.
On-site handling atthe customer site
The responsible department shallpropose a corrective action planwithin 24 hours after root causecon?rmation, ensure full problemclosure within 5 working days, andde?ne preventive measures andhorizontal deployment strategieswithin 7 working days.
Countermeasuredevelopment
Locate the problem instages, systematically ana-lyze potential loopholes,and determine a tempo-rary countermeasure planwithin 4 hours.
Preliminary assessment ofanomalies and temporarycountermeasures
With customer satisfactionas the goal, submit a writ-ten improvement report tothe customer and clarifythe disposal plan forsuspected items.
Customer response andexception handling
Thoroughly investigate rootcauses across the generation,out?ow, and system dimen-sions using tools such as ?sh-bone diagrams and 5 Whys.Simulate and reproduce poten-tial causes using the restorationmethod to repeatedly verifyand accurately identify the trueroot cause.
Root causeanalysis
In 2024, Orinko conducted a customersatisfaction survey targeting strategic andkey customers across business lines suchas automotive, smart home, and struc-tural functionalities. The survey coveredaspects including quality, delivery, ser-vice, product innovation, brand value,and international expansion at the cus-tomer end. Survey results showedimprovements across all dimensionscompared to 2023.The Company developed a comprehen-sive improvement plan, which includedcollecting customer feedback on anoma-lies, compiling feedback summaryreports, conducting on-site customervisits, and implementing specialimprovement initiatives, with clearlyde?ned deadlines and responsible per-sons for each task, all aimed at furtherenhancing customer satisfaction.
CustomerSatisfaction Survey
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Ensuring Integrity and Transparency,Practising Normative Governance
Governance System of the Listed Company ??Internal Audit ??Business Ethics ??Information Security ??Digital Construction ??
Governance Systemof the Listed Company
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
In accordance with the requirements of the Company Law of the People's Republic of China(hereinafter referred to as the "Company Law"), the Securities Law of the People's Republic ofChina (hereinafter referred to as the "Securities Law"), the Rules Governing the Listing of Stockson the STAR Market of the Shanghai Stock Exchange, and other relevant laws and regulations,Orinko Advanced Plastics Co., Ltd. continues to improve the corporate governance structure,ensuring its standardized operation. The summoning, convening and voting procedures of theCompany's general meetings of shareholders and meetings of the Board of Directors and theBoard of Supervisors comply with the provisions of relevant laws and regulations, and all rele-vant members perform their respective rights and obligations in strict accordance with relevantlaws and regulations. The Company makes all major decisions on production and operation,investment and ?nance according to the procedures and rules set forth in the Articles of Associ-ation and relevant internal control systems. During the Reporting Period, we recorded good andindependent practice, and standardized information disclosure, with actual conditions of cor-porate governance in line with the requirements of normative documents on corporate gover-nance of the listed company.
The general meeting of shareholders is the highest power body of the Company. The summoning, proposals,convening, voting, resolutions and meeting minutes of the general meeting of shareholders comply with therequirements of relevant laws, regulations, normative documents, the Articles of Association and the Rules ofProcedure for Shareholders' Meeting. The Company appoints the lawyer to attend and witness the meeting andissue the legal opinion, which further guarantees the legality and validity of the meeting, ensures that all share-holders enjoy equal status and fully exercise their rights, and safeguards the rights and interests of minorityshareholders.The Board of Directors is the decision-making body of the Company. The summoning, proposals, convening,voting, resolutions and meeting minutes of the meeting of the Board of Directors comply with the provisions ofrelevant laws, regulations, normative documents, the Articles of Association and other relevant systems. Alldirectors of the Company perform their duties and obligations in a faithful, diligent and prudent manner, main-tain timely and ongoing oversight of the Company's operation and management, fully discuss various propos-als at meetings, give careful deliberations and make scienti?c decisions, with no violations of laws or regula-tions or harm to the interests of the Company and its shareholders, especially those of minority shareholders.
The Board of Supervisors is the supervisory body of the Company. The summoning, proposals, convening,voting, resolutions and meeting minutes of the meeting of the Board of Supervisors comply with the provisionsof relevant laws, regulations, normative documents, the Articles of Association and other relevant systems. Allsupervisors perform the duties entrusted by all shareholders, diligently and dutifully supervise the Company's?nancial conditions and the legality and compliance of directors and senior executives in performing theirduties, oversee and express opinions on major events, related party transactions and ?nancial conditions ofthe Company, and safeguard the legitimate rights and interests of the Company and its shareholders.
The Company's Board of Directors has four special committees, namely the Audit Committee, the Remunera-tion and Assessment Committee, the Strategy and Development Committee, and the Nomination Committee,which were accountable to the Board of Directors. The composition of all special committees complies with therequirements of relevant laws and regulations as well as the Articles of Association. In the principle of diligenceand dutifulness, all members of special committees conscientiously perform their duties, attend the meetingsin person, without entrusting attendance or absence, and put forward many valuable professional opinions onthe Company's system improvement and decisions on daily operations, playing their due roles in enhancing theCompany's supervision mechanisms and safeguarding the legitimate rights and interests of the Company andits shareholders.
A governance struc-ture of the generalmeeting of sharehold-ers, the Board ofDirectors and theBoard of Supervisors
General meeting ofshareholders
Board of SupervisorsBoard of Directors
Strategy andDevelopment Committee
NominationCommittee
Remunerationand Assessment Committee
AuditCommittee
In 2024, the Company held a total of four general meetings of shareholders, nine meetings of theBoard of Directors, nine meetings of special committees and eight meetings of the Board ofSupervisors.
Construction ofthe Board of Directors
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
The Company fully considers the age, gender, professionalbackground, industrial experience and other factors ofboard members to optimize and diversify the compositionof the Board of Directors.As of 31 December 2024, the Company had a total of sevendirectors, of which three were external independent direc-tors, accounting for 42.86%, and four were non-indepen-dent directors, taking up 57.14%. The current board mem-bers had professional competence in multiple ?elds, suchas industries, ?nance, law, accounting and human resourcemanagement, with abundant industry experience.
Communication with stakeholders (investors)
The Company continues to improve the investor relations management,arranges special personnel to take charge of relevant matters, and providesmultiple communication modes, such as SSE E-interactive, on-site surveysby investors, investor hotline, performance presentation and announcementdisclosure, carefully listening to the opinions and suggestions of investors onthe Company's production, operation and strategic development.
The Company had a totalof seven directorsThe Company had a totalof seven directors
ProportionProportion
42.86%
ProportionProportion
57.14%
On the SSE E-interactive platform, the Company timely answered a total of 68questions from investors in 2024;Timely reply on SSE E-interactive
The Company receives institutions and individual investors in on-site surveys,and provides investors with opportunities to gain a deeper understanding of theCompany's operation and development;Reception of investors in on-site surveys
The Company arranges special personnel to answer calls through the investorhotline, so that investors can obtain necessary information in a timely manner;Call answering of the investor hotline
In 2024, the Company held three presentations (Orinko 2023 Annual and 2024First Quarterly Performance Presentation, Orinko 2024 Semi-annual CollectiveNew Material Performance Presentation, and Orinko 2024 Third Quarterly Perfor-mance Presentation).Regular performance presentations
Number of externalindependent directorsNumber of externalindependent directors
Number of non-inde-pendent directorsNumber of non-inde-pendent directors
Compliance Information Disclosure
2024 Environmental, Social and Corporate Governance (ESG) Repo
In accordance with relevant provisions of the Company Law of the People's Republic of China, the Securi-ties Law of the People's Republic of China, the Administrative Measures for Information Disclosure of ListedCompanies and the Articles of Association, the Company formulates a series of management systemsincluding the Information Disclosure System, to further strengthen the management of the Company'sinformation disclosure a?airs, ful?l information disclosure obligations in a truthful, accurate, complete andtimely manner, improve the Company's information disclosure management level and information disclo-sure quality, and safeguard the rights and interests of investors.According to the Information Disclosure Management System, the Company's directors, supervisors andsenior executives faithfully and diligently perform their duties, ensuring that the Company discloses infor-mation in a truthful, accurate, complete, timely and fair manner. In addition to information disclosed asrequired by mandatory regulations, we also actively and timely disclose information that may have a sub-stantial impact on the decisions of shareholders and other stakeholders, and ensure that all shareholdershave equal opportunities to obtain information, without disclosing or leaking information to individual orpartial investors. The Company discloses various key information in a complete, timely and accuratemanner, so that public investors have a deep understanding of the Company's operation status, ?nancialhealth, progress of major events, existing risks and future development potential. Its information disclosurenot only e?ectively safeguards the right to know of all investors, especially small and medium-sized inves-tors, but also provides reliable references for their investment decisions, thereby guiding investors to makemore wise and rational choices.In 2024, the Company issued a total of four regular announcements and 76 temporary announcements tothe public.
Number of regularannouncementsNumber of regularannouncements
Number of temporaryannouncementsNumber of temporaryannouncements
Ensuring Integrity and Transparency, Practising Normative Governance
Related party transactionsOrinko improves its internal control systems,and standardizes related party transactions instrict accordance with relevant provisions ofthe Articles of Association and the Manage-ment System for Related Party Transactions.The Company signs relevant agreements fornew related party transactions in a timelymanner, while independent directors issueindependent opinion letters on relevant partytransactions. We continue to standardize thedecision-making procedures for related partytransactions, determine transaction prices inthe principles of justice, openness and impar-tiality, follow legal procedures and enter intorelevant agreements or contracts in accor-dance with regulations, and timely discloseinformation, ensuring the fairness of relatedparty transactions.
Internal Audit
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
In 2024, the Company conducted audits on four main business processes, namely sales and collection management, production and warehousing management, procurement and payment management, andexpense management for Orinko and its branches and subsidiaries as follows:
The sales and collection audit mainly evaluatesthe design e?ectiveness of internal controlsystems in the sales process and the rigor of theexecution process, making the Company’s over-all sales activities controllable. The audit coverssuch process nodes as sales order manage-ment, sales process control, customer manage-ment, shipment and income con?rmation andleased warehouses. According to the auditresults, the internal control management of thesales and collection process is controllable ingeneral.
The production and warehousing audit mainlyevaluates the design e?ectiveness of internalcontrol systems in the production and ware-housing process of domestic modi?ed materialfactories and the rigor of the execution process,making the Company’s overall production andwarehousing activities controllable. The auditcovers such process nodes as production plan-ning management, production process manage-ment, quality management, warehousing man-agement and asset management. According tothe audit results, the internal control manage-ment of the production and warehousingprocess is controllable in general.
The purchase and payment audit mainly evalu-ates all purchase activities on the supply chainpurchase platform. The audit covers suchprocess nodes as purchase plan management,purchase order management, payment approv-al management, contract execution manage-ment and supplier management. According tothe audit results, the internal control manage-ment of the purchase and payment process iscontrollable in general.
The expense audit mainly evaluates the imple-mentation of expense control policy and thecompliance of expense reimbursement proce-dures in the expense reimbursement andaccounting process, making the Company'sexpense management transparent and e?ective.The audit covers such process nodes as expensebudget preparation, expense reimbursementapproval, expense accounting and travelexpense management. According to the auditresults, the internal control management of theexpense process is controllable in general.
Expense auditPurchase and payment auditProduction and warehousing auditSales and collection audit
Business Ethics
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Orinko commits to creating a clean, transparent and e?cient corpo-rate environment, laying a solid foundation for the Company's sus-tainable development.
Construction of anti-fraud systemTo prevent fraud risks and safeguard the legitimate rights and inter-ests of the Company and its shareholders, Orinko released theAnti-Fraud Management System in January 2024, aiming to stan-dardize anti-fraud e?orts of Orinko and its subsidiaries, creating aclean and self-disciplined corporate culture environment.The Anti-Fraud Management System requires establishing ananti-fraud work execution group responsible for organizing fraud riskself-assessment, risk prevention and training for all departments.The group is also responsible for accepting fraud reports, investigat-ing cases, compiling reports, and reporting the cases according toestablished procedures.
Construction of anti-fraud cultureTo create a clean, honest and self-disciplined cultural environment, theCompany holds various forms of publicity and promotion activities:
The Company's directors, supervisors and senior executives takethe lead in complying with the Company's various systemsthrough practical actions, and uphold honest and righteous pro-fessional ethics, setting good examples;The corporate culture of "anti-corruption and integrity" is pro-moted in various forms, including but not limited to employeemanual, website and posters;
New employees are required to take the anti-fraud managementsystem training and the exam;
Illegal, unethical and dishonest behaviours can be reportedthrough multiple channels, with protective measures for infor-mants.
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Anti-fraud measures in internal control systems
The Company assesses fraud risks, establishes internal control systems, and strengthens daily business management and supervi-sion to reduce the possibility of frauds. The main measures are as follows:
Reporting channelsand informant protectionThe Company sets up a special hotline, email address and mail-box for reporting and promises to keep the reporting units, infor-mants and the report contents strictly con?dential.
The Company prohibits any organizations or individuals fromunlawful discrimination or retaliation against personnel partici-pating in the investigations. Anyone who illegally discloses theinformant’s information or retaliates against the informant willbe given punishments, such as warning or a dismissal, accordingto the seriousness of the cases. Those who violate the laws willbe transferred to judicial authorities for legal proceedings inaccordance with the laws.
Internal control systems are establishedand improved for various businesses toconduct closed-loop management oversystems and processes, plugging vulnera-bilities and preventing frauds.
Construction of internal control systems
With "internal check" at the core, eacheconomic transaction must be handled bytwo or more departments or personnel,forming supervision and check mecha-nisms for each other.
Separation of incompatible duties
The Decentralization Manual is regularlyrevised to strictly review and approve allbusiness activities of the Company.Authorized review and approval measures
Its intellectual property protection mea-sures focus on the protection of businesssecrets and anti-unfair competition inaccordance with the Administrative Regu-lations for Cultural Publicity, Software Useand Intellectual Property Applications.
Intellectual property protection
An interest con?ict declaration mechanism isestablished to enable employees to promptlyand truthfully declare existing or potentialinterest con?ict information of their own andtheir speci?c related parties.
Declaration of interest con?icts
The Company organizes internal employeesto sign the Honesty and Self-discipline Agree-ment, and requires suppliers to sign theHonest Cooperation Agreement and otherrelevant agreements that need to be signed.
Honesty and self-discipline agreement
A fraud reporting hotline is set to ensuretimely and e?ective information transmis-sion, with a promise to protect the privacy ofreporting units and informants.Reporting and investigation measures
Once frauds are con?rmed, correspondingpunishments will be imposed immediately.
Punishment measures
Telephone:
18355099271Email:
audit@orinko.com.cnAddress:
Audit and Legal Service Centre in the O?ce Buildingat the northwest corner of the intersection of ChangningAvenue and Ningxi Road, Baiyan Industrial Park,Hefei High-tech Zone
Reporting Channels
Informant Protection
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Information SecurityOrinko has a specialized position of Information Security Engineer responsible for information security and data privacy protection. The Company develops a series of management systems, such as the "Infor-mation Security Management Measures and the Data Centre Management Measures, and carries out security protection work in ?ve aspects, namely networks, host computers, applications, data and operations.The speci?c implementation is as follows:
Network
E?cient ?rewalls are deployed at the Company's network boundaries to moni-tor and ?lter network tra?c in real time, and intercept malicious attacks andunauthorized access, ensuring security of internal systems and data.Firewall deployment
E?orts are made to manage employees' Internet behaviours and standardizenetwork use, preventing information leakage or security incidents caused byimproper behaviours.Internet behaviour management
A safe remote access channel is built via VPN to restrict access to internalnetworks, ensure the security of remote access, and e?ectively prevent infor-mation leakage.Sangfor VPN for remote access control
Host computer
Antivirus software is installed on terminals andservers, and virus databases are upgraded andupdated promptly to e?ectively identify andremove malicious software, preventing virus andmalicious software intrusion.
Protection byantivirus software
In the domain controller management, terminalpassword complexity and 5-minute lock screenare set to enhance account security and preventillegal login and operations.
Domain controller managementand password strategy
The desktop protection system is deployed,and desktop watermarks are set to preventillegal replication or dissemination of con-tent on the screen, further protecting con?-dential information.
Desktop protection systemand watermarks
After irreversible destruction, scrapped informa-tion assets are uniformly scrapped to preventrecovery of data in the scrapped equipment andavoid data leakage.
Disposal of scrappedinformation assets
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
ApplicationDataOperation
The application system access permission of departing employeesis revoked promptly according to the demission process to preventpermission abuse or information leakage.Revocation of departing employees' access permission
A uni?ed identity authentication system is imported to control theaccess permission of various business systems, so that users canonly access the resources they require for their work, whichimproves security and controllability of systems.Uni?ed identity authentication and permission control
Vulnerability scanning devices are imported to conduct regularsecurity checks on applications to promptly identify and rectifynon-compliant applications and eliminate security hazards.Vulnerability scanning and remediation
Important system databases are fully backed up once aday. Business application data is incrementally backed upevery day, and fully backed up every seven days to ensuredata integrity and availability, and enhance the datadisaster resistance capability.
Data backup strategy
Professional data backup software is used to store thebackup data on a safe and reliable data backup storageserver to ensure security and reliability of the backupdata.Data storage security
Security engineers conduct internal veri?cation and disposal for industryvulnerability intelligence in a timely manner, preventing the Company'ssystems and applications from threats from known vulnerabilities.Industry vulnerability intelligence monitoring and handling
Relevant security log alerts are monitored to promptly detect and handlesecurity incidents, so that security incidents can be responded to andresolved quickly.Monitoring of security log alerts
After discovery, viruses and other security threats are handled immediatelyand investigated in a closed-loop management model to prevent recurrenceof similar incidents.Virus handling and incident investigation
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Digital ConstructionOrinko upholds a digital intelligent construction strategy covering the whole business process, and builds digitalintelligent factories. The speci?c achievements and progress are as follows:
Manufacturing platform construction
The Company establishes a uni?edmanufacturing management platformto gradually integrate production,warehousing and logistics systems in acentralized management model andsigni?cantly improve production e?-ciency and management accuracythrough functions, such as work ordertasks, material error proo?ng, outputreporting, and historical traceability.
Warehousing management optimizationThe Company builds a uni?ed inventory man-agement platform, enabling precision manage-ment and e?cient operation of inventoriesthrough features, such as purchase arrival, inven-tory transfer, outbound shipment and storagelocation statement. Meanwhile, warehousing e?-ciency is further optimized through pull produc-tion, reduced workshop inventories and precisestorage location management.
Logistics management enhancementThe Company develops a uni?ed shipment and in-transit monitoring platform for overall visual manage-ment over the logistics process through functions, such as arrival scheduling, in-transit monitoring, auto-mated charging and order visualization, signi?cantly improving control capability and e?ciency in thedelivery process.
Visual management of factoriesThe Company achieves data-driven intelligent visual operation at its bench-mark factory in Hefei. A big data centre is composed of three major areas,namely the visitor passage area, the on-site operation area and the on-sitecommand meeting area, involving eight modules, i.e. general management,production, quality control, warehousing, logistics, equipment, security &environmental protection and lean management. Comprehensive visualmanagement covers multiple business areas, including corporate publicity,factory introduction, quality management, mixing operation, extrusionoperation, colour powder centre, additive centre, warehousing manage-ment, logistics management, equipment management, security & environ-mental protection management, lean management and work safety man-agement, totalling 23 visual boards. We achieve the goal of overall visualmanagement through real-time alerts for key data anomalies, earningunanimous recognition from customers.
Number of visual boardsNumber of visual boards
2024 Environmental, Social and Corporate Governance (ESG) RepoEnsuring Integrity and Transparency, Practising Normative Governance
Technological exploration and application
The Company actively explores the application ofAI-powered intelligent assistants, pioneering a new intel-ligent interactive o?ce model. Speci?cally, nine AI-drivenscenarios, including intelligent inventory inquiry, ITknowledge base, yellow card assistant, Orinko GPT andtranslation assistant, are launched to enhance employ-ees' work e?ciency and customer service quality signi?-cantly. Key applications include:
Achievements in digital constructionThe company makes remarkable achievements afterabove digital construction:
E?ciency improvement:
Digital tools are applied to signi?cantly reduce redundant links in workprocedures, improving work e?ciency.Cost control:
Digital means helps us precisely manage resources, achieving reasonablecost control.
Business expansion:
Digital construction provides powerful support for the Company’ s prod-uct and service innovation.
Marketing terminals enable employees to inquire productinventories when they communicate with customers and toretrieve yellow card data when they recommend products.
AI-powered knowledge base provides business personnelwith business personnel system use guidance, base printeruse guidance, yellow card inquiries and daily IT o?ce proce-dure guidance.
Planning personnel can inquire available inventory, labeldates and batch numbers through AI-powered Q&A, makingscienti?c and reasonable production and purchase plansrapidly, with no need to spend time in system switching andcomplex manual inquiry.? National Manufacturing and Internet Integration Development Pilot Demonstration Project: a project on manufacturing of modi?ed plas-tics and capabilities of lean quality management and control? Enterprise-level Industrial Internet Platform in Anhui Province: an industrial Internet platform on full life-cycle control of new types ofmulti-functional composite materials? Industrial Internet New Application Model Demonstration Project in Anhui Province: a new model application demonstration project onmanufacturing of modi?ed plastics and lean quality management? Intelligent Factory in Anhui Province: an intelligent factory for producing modi?ed plastics? Top 10 Empowered Industrial Scenario Demonstration Project in Hefei: an industrial Internet demonstration project on digital collabora-tion in high-performance ?reproof material industry chain
Honours and awards:
Low-Carbon Transition,Reshaping Industry Ecosystems
Low-Carbon Transition, Reshaping Indust Ecosystems
2024 Environmental, Social and Corporate Governance (ESG) Repo
Strategic Carbon Neutrality Action ??Response to Climate Change ??Circular Development ??
Reduce the energy consumption per unit product by 15% and the greenhouse gas emis-sion intensity by 20% (Scope 1 + Scope 2), and increase the revenue share of green prod-ucts to 30%; complete the annual greenhouse gas emission accounting and veri?cation,and establish a carbon footprint management system covering the whole value chain.
Reduce the greenhouse gas emission intensity(Scope 1 + Scope 2) by 30% compared to that in2025, and encourage over 80% of core suppliersto complete carbon emission accounting;increase the revenue share of low-carbon mate-rials for new energy vehicles, photovoltaic mod-ules and energy storage devices to over 40%,and achieve large-scale production capacity incircular economy businesses.
Strategic CarbonNeutrality ActionOrinko's strategic goalsfor carbon neutrality
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Guided by China’s "dual carbon" goals, Orinko commits to becomingan internationally competitive green new materials solution providerthrough technological innovation and whole-industry-chain collabo-ration.
Short term (by 2028)
Medium term (by 2035)
Achieve carbon neutrality inoperations and value chains,build a closed-loop ecosystem of"material production, recyclingand carbon asset operation",and grow into a global bench-marking company for low-car-bon transition in the new materi-al industry.
Long-term (by 2050)
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Orinko's carbon neutrality strategy focuses on four core areas:
Breakthroughs are made in bio-based resins, post-consumerrecycled plastics, and lightweight engineering plastics to reducecarbon footprints throughout the full life cycle. For example,battery pack shell materials (over 20% weight reduction) andmotor insulation materials (15% higher temperature resistance)are developed for new energy vehicles, helping downstream cus-tomers achieve emission reduction goals.
Developing high-performance low-carbon materials
Based on the demands of emerging ?elds, such as low-altitudeeconomy and robotics, low-dielectric and high-thermal-conduc-tivity modi?ed materials are developed to make intelligent devic-es more lightweight and e?cient. Materials relating to carboncapture, utilization and storage (CCUS) are explored to o?er sup-port for industrial carbon sequestration.
Advancing cutting-edge material technologies
Low-carbon product upgrades drivenby technological innovation
Energy consumption in the process of production is monitored andoptimized in real time on the energy management platform (EMP).Rooftop photovoltaic system and green electricity purchase arepromoted to increase the proportion of renewable energy use to25% by 2030 and use green electricity in all main production basesby 2050.
Building intelligent green factories
Throughout the whole industry chain of "waste plastic recycling,sorting, modi?cation and application", PCR (post-consumerrecycled) material production bases are established in EastChina and South China, with an annual production capacity of150,000 tons. Lightweight PCR-ABS for vehicles and weather-re-sistant PCR-PP for home appliances are developed to help cus-tomers reduce emissions in their supply chains.
Advancing the circular economy model
Whole-process green manufacturingand energy e?ciency improvement
A dedicated team is established to track policies such as the EUCBAM and the US IRA, and a traceable product carbon footprintsystem is built to ensure that exported products meet internation-al low-carbon standards. The Company engages in global supplychain carbon emission reduction cooperation to enhance itsgreen brand premium.
Addressing international carbon policy challenges
The carbon neutrality target is included into the ESG-speci?cperformance assessment. The annual greenhouse gas emissiondata is published to disclose climate risk response and emissionreduction progress, improving transparency and investor con?-dence.
Strengthening carbon emission governance and disclosure
Globalization and policycompliance capacity building
The wet-process separator project is extended to lithium batteryseparators, oil-based coatings and aramid coatings, aiming todevelop leading customers in the new energy industry and seizeopportunities amid global surging demands for new energy mate-rials.
Exploring core new energy materials
With a declining number of conventional high-energy-consump-tion material production lines, green manufacturing bases areestablished in Southeast Asia (e.g. Thailand factory) and NorthAmerica to better meet overseas market demands and reduce bothemissions in transportation and impacts from trade barriers.
Phasing out outdated production capacity,optimizing production capacity layout
Green and high value-addedindustrial structure
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Orinko' Carbon Neutrality ActionOrinko focuses on the full life-cycle carbon reduction, boostscoordinated development of green design, green purchase,green intelligent manufacturing, green logistics and green recy-cling, and forms closed-loop model from technological innova-tion to industrial chain collaboration, setting a leading examplefor achieving a green and low-carbon economy in the industry.
Orinko attaches attention to the quality of raw materials at the source, anddesigns and develops renewable low-carbon products, bio-based low-carbonproducts and high-quality low-carbon products throughout the whole industrychain, building a green material system spanning from synthesis to modi?ca-tion. The Company's high-performance steel-replacing plastic materials notonly enhance the lightweight performance of terminal products, but alsosigni?cantly reduce their carbon emissions, providing critical support for greentransition of new energy vehicle and home appliance industries. Additionally,its self-developed spray-free materials and laser-engraving materials empowerthe low-carbon economy, demonstrating that its forward-looking designsadvance green manufacturing.
Green design: advancing low-carbontransition through technological innovation
Adhering to the green supply chain management principle, Orinkoestablishes strategic partnerships with Midea, GEM and other lead-ing enterprises, and develops PCR (post-consumer recycled) ma-terial recycling, dismantling and advanced plastic processingthrough equity investments and co-investments in factories. Thisclosed-loop management model spanning from raw materials toterminal products not only ensures upstream resource supply, butalso drives large-scale development of resource recycling. Further-more, the Company leverages its Thailand production base toexpand PCR resource channels, providing solid support for build-ing global green supply chains and demonstrating its strategiclayout in international resource guarantee.
In the ?eld of green intelligent manufacturing, Orinko's production basesactively carry out the ISO 50001 energy management system by establishing amicrogrid system integrating energy management system, distributed photo-voltaic modules and energy storage devices, which enables real-time energyconsumption monitoring and data-driven operation analysis. The digital tran-sition of energy management not only increased the energy utilization e?cien-cy, but also provides scienti?c basis for decarbonizing the production process.By reference to Danaher's DBS lean management system, Orinko establishesits own lean production system to build green factories through process opti-mization and energy management improvement initiatives. Currently, its Hefeiand Guangdong factories have successively passed provincial and nation-al-level green factory demonstration certi?cations, further solidifying the Com-pany's leading position in the ?eld of green manufacturing.
Green purchase: co-building a closed-loopmodel in supply chains
Green intelligent manufacturing: o?eringtechnological support to energy management
2024 Environmental, Social and Corporate Governance (ESG) Repo
Case
Hefei and Guangdong production bases were awarded green factories in 2024Since the construction start of the factories, Orinko has carried out friendly sustainable develop-ment concepts of low carbon, energy e?ciency and environmental protection in design and proj-ect construction. With green development and circular economy as its main development direc-tions, the Company commits to building a "green manufacturer" to advocate green manufactur-ing concept and boost comprehensive green development.
At the organizational level, the Company set up a green factory promotion body, consistingof the promotion committee, the promotion o?ce, the promotion backbone group and thegreen factory construction assessment group.At the institutional level, the Company developed a range of management systems, devel-oped the green factory performance assessment management system, and de?ned theduties and the target-based assessment accountability system.At the practical level, the Company satis?ed the green factory assessment requirements interms of building and lighting infrastructures, ISO management system certi?cation, energy,resource input, products, environmental emissions and performance.
Orinko signi?cantly reduces energy consumption and carbon emissions in the processof transportation by such measures as local purchase, optimized transportation routesand prioritized use of new energy vehicle models. Meanwhile, the Company adopts theWMS (Warehousing Management System) for automated and unmanned warehouseoperations, improving the space utilization rate of warehouses, the inbound and out-bound e?ciency of goods and the intensive use of land. We apply AGVs (automatedguided vehicles), palletizing robots, conveyor belts and other intelligent devices inautomated cargo handling and sorting, making logistics operations more automaticand e?cient.
Green logistics: intelligent optimizationfor low-carbon transportation
Orinko actively responds to national and market policies by establishing a carbon foot-print accounting platform. By the full life-cycle assessment method stated in the ISO14067 standard, the Company uses professional software, such as eFootprint, LCA forExperts, and databases, including CLCD, ELCD and Ecoinvent, to assess product carbonfootprints and compile reports, in a bid to track and monitor environmental emissionsfrom raw material acquisition through the whole production process, and adopt target-ed emission reduction measures in key links. In 2024, we completed the carbonaccounting for over 200 product series in PP, ABS, and PC categories and the third-partycarbon footprint evaluation for two product series, boosting the construction of a prod-uct carbon footprint database by both internal and external e?orts. According to theISO 14067 standard, the Company organized greenhouse gas accounting and carbonreduction assessment management across its production bases to have comprehen-sive understanding of its own greenhouse gas emissions, identify key emission reduc-tion processes, and formulate and implement e?ective carbon reduction measures,laying a solid foundation for its sustainable development.
Full life-cycle carbon reduction: a closed-loop systemfrom materials to value chains
Low-Carbon Transition, Reshaping Indust Ecosystems
Response to Climate Change
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Orinko integrates climate change governance into its top-leveldesign by establishing a climate governance system that issupervised by the Board of Directors and led by the manage-ment with cross-departmental collaboration. The Board ofDirectors proposes to establish a Strategic Development andESG Committee to de?ne the decision-making rights andresponsibilities for climate-related issues, and develop climatepolicies and execution mechanisms as a whole. Each produc-tion base has a climate action team, which incorporateslow-carbon goals into performance evaluation to ful?l climateresponsibilities throughout core processes, such as R&D, pro-duction, and supply chains. The Company holds regular train-ings and publicity programs on climate issues to enhance em-ployees' awareness of climate change, and continues making itsgovernance framework more complete and e?ective throughthe stakeholder communication mechanism.
Admit the progress toward "dual carbon" goals, Orinko formulatesshort-term, medium-term and long-term strategic plans against climatechange, focusing on synergy between green technological innovationand emission reduction on full value chains. Through systematic evalua-tions on climate-related risks and opportunities, the Company optimizescarbon footprints of products throughout the full life cycle, exploresalternative solutions for clean energy, and boosts technological innova-tion in green processes, reducing the carbon emission intensity in opera-tions and value chains in an all-round way. We deeply integrate thelow-carbon concept into our product R&D and business models, devel-op high value-added and environmentally friendly materials, and em-power low-carbon transition in downstream industries, building aclimate resilience competitiveness. In the implementation of the strate-gic plans, the Company lays emphasis on cooperation with stakehold-ers, and participates in discussions on industry initiatives and policies tojointly build a climate-friendly industrial ecosystem.
GovernanceStrategy
Orinko establishes a full life-cycle climate risk manage-ment system based on the TCFD (Task Force onClimate-related Financial Disclosures) framework to iden-tify the impacts of physical risks (such as extreme weath-er) and transition risks (such as policy tightening) on itsoperations and quantify their ?nancial relevance. Inresponse to extreme weather, policy and regulationsupdates, technological disruptions and other potentialrisks, the Company formulates emergency plans, andkeeps optimizing its resource allocation capabilities. Bytaking advantage of its green ?nancial tools and low-car-bon technology reserves, we become more adaptive totransition risks, such as carbon pricing mechanisms andchanges in market preferences.
Risk management
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Climate-related risks and countermeasures (partial)
Global warming leads to frequent extreme weather conditions, suchas high temperatures, heavy rains and typhoons, which may a?ectthe operational stability of production bases, cause equipmentdamage, disrupt raw material supply or delay logistic delivery.
1. Establish climate risk maps, and screen physical risks in core production bases and supply chain nodes;
2. Strengthen disaster-resistance capabilities of infrastructures, such as ?ood control facilities, backup energy
systems;
3. Sign ?exible supply agreements with major suppliers, and establish emergency stocks.
Short term (1-3 years)Long term (more than 5 years)Lead to potential local production capacity?uctuations in the short term, requirecontinuous investments in resilience build-ing in the long term.
Risk description Risk typeCountermeasures Impact degree Time range
Entity risk
Global carbon peak and carbon neutrality policies and increasinglystrict industry emission standards, such as the EU's CBAM and theexpansion of the domestic carbon market, may increase carboncompliance costs and carbon tari?s on exported products.
1. Establish a policy research team to Keep track of global carbon policy trends;
2. Optimize the carbon footprint accounting system for products, and develop purchase of low-carbon raw
materials and green manufacturing processes;
3. Hedge compliance costs through carbon o?setting and carbon trading tools.
Medium term (3-5 years)Long term (more than 5 years)Increase compliance costs in the mediumterm, avoid market access barriers throughtechnological upgrades in the long term.Transition risk
in policycompliance
Conventional high-carbon materials are under the pressure ofsubstitution with low-carbon ones, such as degradable materials,PCR materials and bio-based materials. Lagging technological itera-tions may lead to the loss of market shares.
1. Increase investments in R&D to develop low-carbon modi?ed materials, such as renewable PP, ABS, and
PC series materials.
2. Establish a whole industrial chain of "consumer product recycling, dismantling, crushing, sorting, pelletiz-
ing and modi?cation" in PCR material production bases.
3. Jointly build a green supply chain together with customers in new energy vehicle, home appliance and
other industries to pass low-carbon product certi?cations.
Medium term (3-5 years)Long term (more than 5 years)Record declined sales volume of part ofconventional products in the medium term,achieve a di?erentiated competitivenessthrough technological innovation in the longterm, expected an increase of 10%-15% innew revenue.Transition riskin technological
substitution
Climate change intensi?es price ?uctuations of oil and otherconventional raw materials, a?ecting the stability of productioncosts. Meanwhile, the supply system of low-carbon raw materials,such as bio-based resins, remains immature, so there may bepurchase risks.
1. Establish a raw material price monitoring mechanism to reduce the impact of price ?uctuations through
hedging and other tools;
2. Establish production bases through co-investment with upstream PCR enterprises in East China and
South China to ensure stable supply of low-carbon raw materials;
3. Optimize purchase strategies, and increase the proportion of local purchase to reduce supply chain risks.
Short term (1-3 years)Long term (more than 5 years)Su?er an impact on pro?ts from cost ?uctua-tions in short term, optimize supply chainsto gradually alleviate the impact in themedium term, rely on low-carbon materialsfor substitution in the long term.Transition riskand raw material
?uctuations
The progress of new construction projects is a?ected by suchfactors as climate-related approvals and supply chain delays, whichmay result in the lag of production capacity release and the loss ofmarket opportunities.
1. Establish project-speci?c working groups to monitor the progress in real time and coordinate resources;
2. Strengthen climate resilience cooperation with equipment suppliers, raw material suppliers and construc-
tion units, and formulate emergency plans;
3. Simultaneously advance the development of existing businesses and the R&D of cutting-edge technolo-
gies to diversify risks.
Medium term (3-5 years)Have a potential impact in the implementa-tion pace of the second growth curve in themedium term, reduce the dependence on asingle project through diversi?ed layout inthe long term.Transition risk inproject progress
belowexpectation
The brain drain of technical personnel or the leakage of coretechnologies lead to lagging R&D of low-carbon materials, making itdi?cult to meet customer demands for high-performance andlow-emission products.
1. Sign con?dentiality agreements with core technical personnel;
2. Implement employee shareholding plans to bind the interests of core talents;
3. Establish an R&D achievement protection mechanism to strengthen technical barriers based on patents.
Short term (1-3 years)Medium term (3-5 years)Have an impact on R&D e?ciency in theshort term, lead to declined market competi-tiveness in the medium term, require contin-uous investments in talent and technologi-cal reserves in the long term.
CorecompetitivenessriskCore competitiveness risks : Risks are classi?ed based on the TCFD framework and industry characteristics, focusing on entity risks (physical impacts) and transition risks (policy, technology and market changes),while including climate risks relating to core competitiveness.
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Climate-related opportunities and countermeasures (partial)
China's 14th Five-Year Plan and the Guiding Opinions on Promoting High-QualityDevelopment of the Petrochemical and Chemical Industries During the 14thFive-Year Plan Period explicitly support the development of high-end modi?edmaterials, bio-based materials and low-carbon materials, and requires that domes-tic chemical new materials meet 75% of domestic demands by 2025, indicating aclear import substitution trend. China's new materials industry scale is expected toexceed RMB11 trillion by 2025 and reach RMB23.5 trillion by 2029, with a com-pound annual growth rate of approximately 21%.
1. Focus on R&D of high-end modi?ed materials, and make breakthroughs in special
engineering plastics (such as long-carbon-chain nylon, PEEK), bio-based materialsand other "bottlenecks", accelerating the process of import substitution;
2. Participate in developing industry standards, strengthen cooperation with govern-
ment departments and industry associations, and strive for policy subsidies andgreen credit support.
Medium term, long termRecord the revenue share of high-end productsof more than 25% in the medium term (3-5years), grow into a core bene?ciary of importsubstitution in the long term (more than 5years), and expect to contribute additionally15%-20% of pro?ts.
Opportunity descriptionOpportunity
typeCountermeasuresImpact degreeTime range
Policy-drivenopportunities
Global new energy vehicles and energy storage markets are experiencing rapidgrowth. In 2024, China's lithium battery market recorded 1,175 GWh of shipments,and the demand for lithium battery separators is expected to reach 26.7 billionsquare meters by 2025. The Company is steadily advancing its wet-process separa-tor project, aiming to become a leading supplier of new energy materials.
1. Accelerate the implementation of the wet-type separator project, and develop
high-performance lithium-ion separator materials, covering energy storage, powerbatteries and 3C ?elds;
2. Develop lightweight materials for new energy vehicles, such as battery pack shell
materials and motor insulation materials, as well as weather-resistant materials forphotovoltaic modules to retain core customers.
Medium term, long termIncrease the revenue share of new energy mate-rials by more than 10% in the medium term (3-5years), develop the business into the secondgrowth curve in the long term (more than 5years), and expect an increase of 5-8 percentagepoints in the gross pro?t margin.Explosivedemands fornew energymaterials
During the development of the circular economy driven by global "dual carbon"goals, there are increasing demands for PCR (post-consumer recycled plastic)materials in automobile and home appliance industries. The Company establishesa complete industrial chain covering "consumer product recycling, dismantling,crushing, sorting, pelletizing and modi?cation", and builds joint venture productionbases in East China and South China, with a total annual capacity of 150,000 tons,covering PP, ABS, PC and other recycled materials.
1. Expand the production capacity of PCR materials, and develop high value-added
recycled material products, such as lightweight PCR-ABS for automobiles and weath-er-resistant PCR-PP for household appliances;
2. Provide carbon footprint accounting services for customers, jointly build green
supply chains, and help downstream customers achieve ESG goals.
Medium term, long termContinuously increase the revenue of circulareconomy in the medium term (3-5 years), form aclosed loop of "production, recycling, modi?ca-tion and application" in the long term (morethan 5 years), and expect to contribute 10%-15%of pro?ts.Circulareconomy andlow-carbonproducts
2024 Environmental, Social and Corporate Governance (ESG) Repo
With the increasing demands for low-carbon materi-als in new energy vehicle and home appliancemarkets across Southeast Asia, North America andEurope, the Company's Thailand factory phase I hascome into operation. In 2024, the Company recordedrapid growth in overseas revenue, and planned tosales o?ces in North America and Europe.
1. Make business presence with its Thailand base at the
core, gradually expand into markets in North Americaand the EU countries, and meet local requirements forlow-carbon compliance (e.g. EU CBAM);
2. Develop localized production and supply chain
layout, while reducing transportation emissions andimpacts of trade barriers.
Gradually increase the proportionof overseas business revenue in themedium term (3-5 years), grow intoa global supplier of green materialsin the long term (more than 5years), and expect to earn morethan 20% of revenue from interna-tional markets.
Opportunity descriptionOpportunity
type
CountermeasuresImpact degreeTime range
International
marketexpansion
With surging demands for lightweight, high-strengthand low-dielectric materials in emerging industries,such as intelligent connected vehicles, low-altitudeeconomy (drones) and robots, the Company hasdeveloped lightweight PC materials for drones andelectromagnetic shielding materials for robots,achieving mass production of relevant vehiclemodels.
1. Establish a specialized R&D team to focus on devel-
oping materials for cutting-edge ?elds such as low-alti-tude economy and robots;
2. Advance AI-assisted R&D, and accelerate product
iterations to seize the initiative in emerging markets.
Continue to increase businessrevenue from emerging ?elds inthe medium term (3-5 years), formtechnological barriers in the longterm (more than 5 years), andexpect to achieve revenue increaseby 10% to 15%.
Technologicalinnovationand productupgrades
With energy e?ciency upgrades of the manufacturingindustry driven by China's "dual-carbon" policy, theCompany introduces lean management and digitaltools (e.g. MES, WMS systems) to build intelligentgreen production lines, with the goal to reduce theenergy consumption per unit product by 15% by 2028compared with that in 2025.
1. Promote energy-saving technologies, such as photo-
voltaic power stations and green electricity purchase,to reduce carbon emissions in the production process;
2. Enhance the resource utilization rate through intelli-
gent upgrades to reduce waste discharge.
Short term,medium term,long termReduce energy consumption costsin the short term (1-3 years), buildzero-carbon manufacturingdemonstration factories in the longterm (more than 5 years), enhancethe brand's ESG competitiveness.
Greenmanufacturing
and energye?ciencyenhancement
Opportunities are classi?ed based on policy guidance, market demands, technological innovation and internationalization strategies, focusingon business segments highly related to low-carbon transition, such as new energy materials, circular economy and green manufacturing.
Low-Carbon Transition, Reshaping Indust Ecosystems
With reference to mainstream international standardframeworks, such as TCFD and SASB, Orinko builds aclimate performance management indicator system,covering carbon emission intensity, energy usee?ciency, proportion of renewable energy and othercore dimensions. The Company sets phased emis-sion reduction targets in a scienti?c and practicalmanner based on process optimization, equipmentupgrades, circular economy model innovation andother measures in the pathway toward carbon neu-trality, and conducts regular evaluations and disclos-es to stakeholders to make climate actions increas-ingly more transparent. Furthermore, we take anactive part in climate action initiatives, commit toaligning with global temperature control goals, andcarry out climate actions through dynamic and itera-tive indicator management, contributing measurablevalue to stakeholders.
Indicators and targets
Medium term,long term
Medium term,
long term
Circular Development
2024 Environmental, Social and Corporate Governance (ESG) RepoLow-Carbon Transition, Reshaping Indust Ecosystems
Under China's "dual-carbon" policy, the proportion of recycled material manu-facturers shows a gradual upward trend. Orinko partners with domestic wastehousehold appliance and automobile dismantling plants to make businesslayout in South China and East China, which greatly shortens recycling chains,reduces recycling costs, and improves the PCR recycling system. In 2024, theCompany launched product portfolios involving PP, ABS, PA, PBT, PE, PC, PPO,AS, HIPS and GPPS, and provided services mainly to manufacturers of homeappliances, automobiles, electric vehicles and electric tools.
Purchase of recyclable resources
As the EU's Green Deal initiative requires 100% recyclableplastic packaging by 2030, and China's 14th Five-Year Planfor Circular Economy Development targets a recyclingindustry output of RMB5 trillion by 2025, global supplychains are facing increasingly stringent requirements forthe use ratio of recycled materials. For instance, brands likeApple and Dell require over 30% of recycled plastics in theirproducts by 2030. Orinko commits to "building valuechains for circular economy and driving green materialupgrades", passes GRS, UL 2809, ISO 14021 and other inter-national authoritative certi?cations, and creates aclosed-loop process of "recycled materials → green prod-ucts → low-carbon supply chains" in line with globalmarket access standards, gaining a ?rst-mover advantagein "green competitiveness".
Content certi?cationof renewable materials
By strengthening R&D and manufacturing of recycled materials in terms of quali-ty and process, the Company cooperates with many brands to widely apply itsproducts in electronic appliances, automobiles and other ?elds.From sorting, crushing, high-e?ciencycleaning to composite sorting and puri-?cation, the whole operation processcomplies with the standards. Throughmelting in high temperature, impuritiesare further removed, then the materialsare pelletized, cooled and homoge-nized into ?nished products, which arehigh-quality PCR materials, and canreplace all or part of new materials inmodi?ed formulas.
Utilization of renewable resources
Under intelligent and IT-basedcontrol, the whole PCR productionprocess becomes an integratedmanufacturing procedure guaran-tee system incorporating wasteplastic sorting, crushing, high-e?-ciency cleaning, composite sortingand modi?ed material pelleting.
QualityProcess
Make e?orts in environmental protection, social responsibility and business development todrive global industrial chains toward a low-carbon circular model.GRS62
Boost technological innovations in PCR products, and enhance transparency and credibility,while avoiding trade barriers.ISO 1402168
Reduce marine plastic pollution, protect biodiversity, and advance the circular economy, whilemitigating policy risks.OBP
Quantify carbon emission reduction data, supporting customers' carbon o?set claims, and helpcompanies reach the requirements of recycled material utilization regulations of all countries,while avoiding trade barriers.UL 2809
NumberCerti?cation
Core value
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
Protecting Environment,Building a Green Home Together
Environmental Management ??Energy Management ??Water Resource Management ??Pollution and Emissions Management ??
EnvironmentalManagement
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
Orinko's major production bases strictly comply with the Envi-ronmental Protection Law of the People's Republic of China, theRegulations on the Administration of Construction Project Envi-ronmental Protection, and other relevant laws and regulations.The Company continues to improve its environmental manage-ment system through system development and compliancemanagement, identi?cation of environmental factors and riskcontrol, as well as resource conservation and recycling. Orinkohas successfully obtained ISO 14001 Environmental ManagementSystem certi?cation. In line with the Environmental ProtectionTarget Responsibility System, the Company has set environmen-tal goals and indicators, which are then allocated to speci?cdepartments. Detailed plans for training, drills, and hazardinspections are developed for each target and indicator to con-tinuously enhance environmental performance. Through scientif-ic planning, full participation, and continuous improvement,Orinko e?ectively enhances its environmental management,achieving coordinated development of both economic and envi-ronmental bene?ts.During the construction of new facilities, Orinko strictly imple-ments the "Three Simultaneities" policy for environmental pro-tection in construction projects, ensuring that environmentalprotection facilities are designed, constructed, and commis-sioned simultaneously with the main project. The Companyenforces rigorous standards throughout project design and regu-latory submission, environmental acceptance, and pollutantdischarge permit processing. It also ensures timely completion ofenvironmental impact declarations and the preparation of relat-ed project documentation for public disclosure.In 2024, the Company recorded no environmental pollution inci-dents and received no environmental complaints.
Development of the EnvironmentalManagement System
To comprehensively enhance the Company's environmental protectione?orts and continuously strengthen environmental risk management,ensuring compliance with relevant laws, regulations, and standards inproduction and operations, Orinko strictly adheres to the requirementsof the Environmental Protection Law, the Environmental Impact Assess-ment Law, and the Law on the Prevention and Control of EnvironmentalPollution by Solid Waste. It has formulated documents such as the Haz-ardous Waste Management System, and the Methods for the RoutineAdministration of Environmental Protection Collection System as opera-tional guidelines. A dedicated Environmental, Health and Safety (EHS)department is established, sta?ed with full-time personnel responsiblefor supervising and guiding environmental management e?orts toensure e?ective operation of the Company's environmental manage-ment system and continuous improvement of its environmental perfor-mance, thereby reducing the impact on the public and the environment.
Development of the EnvironmentalManagement System
Orinko's major production bases have integrated environmental risk preventionand control into routine enterprise management, continuously enhancing theircapacity to prevent environmental risks and reinforcing pre-incident preventione?orts. The Company has established a comprehensive emergency responsemechanism for environmental incidents, formulating the Emergency Plan forAbrupt Environment Incidents as a guiding document. It has also set up aresponse team for environmental emergencies and concerns, fully responsible forensuring swift, accurate, and e?cient emergency handling within the factories.These measures aim to minimize, mitigate, or eliminate casualties and propertylosses caused by unexpected environmental incidents. Additionally, the Companyconducts regular emergency drills to strengthen the emergency response capabil-ities and identify potential environmental risk points, followed by assessment andrecti?cation, while reinforcing routine environmental monitoring.
EnvironmentalEmergency Management
Environmentalincidentoccurrence rate in 2024Environmentalincidentoccurrence rate in 2024
Energy Management
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
EnergyManagementPolicy
Development of the Energy Management SystemTo reduce energy consumption and improve energy e?ciency, Orinko's major production bases have developed the Energy Manage-ment Manual as a guiding document, in accordance with the ISO 50001 Energy Management System standard and tailored to the Com-pany's speci?c context. The manual de?nes the Company's energy management policy and objectives. To ensure e?ective implementa-tion, the company leadership coordinates with relevant departments to carry out the Energy Management Implementation Plan, estab-lishing practical measures and actions, and ensuring their execution.
Through the workshop energy man-agement system, Orinko collectsenergy consumption data at work-shop, production line, team, andequipment levels, and calculatestotal energy consumption andenergy intensity as dual-control indi-cators. By comparing collected datawith historical production data, thesystem identi?es anomalies anduncovers potential energy-savingopportunities, continuously optimiz-ing energy use e?ciency.
Energy saving & e?ciencyimprovement, and cleanproduction
The Company is committed to complying withenergy conservation laws and regulations,actively adopting high-e?ciency and ener-gy-saving equipment and technologies, andmeticulously organizing energy managementto reduce energy consumption and green-house gas emissions, thereby ful?lling its socialresponsibility and obligations in environmentalprotection.
In its energy use, Orinko seeks to minimizewaste and continuously improve utilizationand operational e?ciency, thereby reducingenergy costs and improving overall perfor-mance.
Energy saving & e?ciencyimprovement
Clean production
Energy-saving Initiatives and Outcomes
Real-time energy consumption monitoring and analysis
Identify equipment operation patterns andschedule o?-peak electricity usageMonitor the power supply system to detectabnormalities in real timeSet energy e?ciency benchmarks withover-limit alerts and benchmark analysisEnable real-time energy monitoringAutomatically generate energy reportsIntegrate with the MES system to supportintelligent manufacturing networking
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
Distributed photovoltaic systems have been installedat all major production bases of Orinko, increasing theuse of renewable energy.
Rooftop photovoltaic power generation
The Company enhances energy e?ciency through multiple measures, including identifying equipment operation patterns toschedule o?-peak electricity usage, monitoring the power supply system to detect anomalies in real time, and setting energye?ciency benchmarks with over-limit alerts and benchmark analysis.
Equipment operation optimization
Hefei FactoryChongqing Factory
Guangdong FactoryAnqing Factory
Idle rooftop space on industrial buildings is utilized for PVpanel installation, without occupying land resources;Reduction in emissions of CO
, SO
, NO
, and particulatematter;Power generated is primarily self-consumed, with excess elec-tricity fed into the grid, e?ectively reducing peak-hour powerloads;During staggered electricity consumption, the Company ben-e?ts from government policies that prioritize the consump-tion of green energy, such as solar power, thereby reducingthe impact of staggered power rationing and outages.
Water Resource Management
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
Orinko has established a water-saving and water-consuming man-agement steering group led by the general manager, with depart-ment and workshop heads serving as team members, and desig-nated personnel responsible for daily management of water-sav-ing e?orts. To ensure e?ective implementation, the Company hasintroduced speci?c responsibility systems for water conservationleaders, departments, and o?cers, with clear responsibilitiesassigned to individuals. A comprehensive set of water conserva-tion management regulations has been established, including thepipe network inspection system, the water-saving and water-con-suming statistics system, and the reward and punishment systemfor water-saving quota management. To incorporate water-savingas a mid- to long-term component of corporate management,Orinko has formulated an annual water conservation plan and the14th Five-Year Plan for water conservation.
Regular water balance testing is carried out to fullyunderstand the Company's water supply network andwater usage status, providing a scienti?c basis for ratio-nal water use. The test results help identify issues inwater usage, enabling targeted optimization andimprovement measures to enhance both e?ciency ande?ectiveness.
Development of the Water ResourceManagement System
During production, cooling towers, circulation tanks andother equipment are used to facilitate water recyclingand reuse.
Water-saving Initiatives
The Company's water-saving and water-consum-ing management steering group has organizedmultiple water-saving publicity campaigns foremployees, distributing brochures and sharingwater-saving tips via the internal network. Thesee?orts aim to embed water-saving awarenessdeeply into employees' mindset, turning conser-vation into a conscious and voluntary habit. Em-ployees are encouraged to report any leaks, drips,or abnormal water usage promptly to the man-agement for immediate repair.
Water-saving PublicityWater balance testingand rational water use assessment:
Water recycling systems:
Pollution and EmissionsManagement
2024 Environmental, Social and Corporate Governance (ESG) RepoProtecting Environment, Building a Green Home Together
At its major production bases, Orinko ensures that theemissions of exhaust gas, wastewater, solid waste, andnoise generated during the manufacturing process allcomply with environmental protection requirements.
During its production process, the Company generates circulating cooling water and domesticwastewater. Wastewater is treated through a dedicated sewage treatment system, with regularmonitoring of indicators such as chemical oxygen demand (COD), biochemical oxygen demand(BOD), ammonia nitrogen, and total phosphorus, to ensure compliance with discharge stan-dards. Orinko centrally collects and treats wastewater using a combination of physical, chemi-cal, and biological methods, ensuring compliance with national and local discharge standardsbefore discharge.
Wastewater
Exhaust gas
During the extrusion, blending, coloring, and additive processes, exhaust gases such asparticulate matter, hydrogen chloride, and non-methane total hydrocarbons may be gen-erated. The Company treats them properly using activated carbon, bag-type dust collec-tors, zeolite rotors combined with RTO, and pulse dust collectors before discharge incompliance with relevant standards.
During production processes such as blending and material feeding, as well as in employees'daily activities, the Company generates general solid waste (e.g., packaging materials, wastepaper) and hazardous solid waste (e.g., spent activated carbon, waste mineral oil). Orinkokeeps detailed records and statistics on the quantities, types, and disposal of solid waste, andregularly inspects and evaluates the treatment process. General waste and hazardous wasteare stored separately in dedicated temporary storage areas and are collected centrally beforebeing transferred at regular intervals to quali?ed third-party entities for compliant disposal.
Solid waste
Noise
The Company's major sources of noise include production machinery, ventilation systems, andtransport vehicles. To reduce noise, technical measures such as installing vibration-damping padson equipment are implemented. When upgrading or replacing equipment, low-noise models areprioritized. The Company also engages quali?ed third-party institutions to regularly monitor envi-ronmental noise levels. E?ective noise reduction measures are adopted to ensure that noiseemissions comply with national and local environmental protection standards.
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
Putting People First,Building a Defense Line to Ensure Safety
Workplace Safety Management ??Dual Prevention Mechanism ??Occupational Health & Safety ??
Workplace Safety Management
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
All major production bases of Orinko strictly comply with relevant national laws and regulations, and uphold the concept of "safety is thebasis of survival" and the policy of "safety ?rst, prevention foremost, and comprehensive control". The Company has established a com-prehensive safety management system covering the entire production process.At the organizational level, the Company has implemented a safety accountability system, with the general manager serving as the high-est decision-maker and commander for safety matters, ensuring that safety responsibilities are enforced at all levels to prevent andreduce the occurrence of safety incidents. Safety-related metrics, including administrative penalties, work-related injuries, and theon-time recti?cation rate of identi?ed hazards, are incorporated into performance evaluations across departments, with a reward andpenalty mechanism in place to e?ectively enhance the Company's safety management. Guided by the Management System for Work-place Safety Goals, Orinko sets workplace safety goals and performance indicators, which are further allocated to speci?c departments.Through a combination of goal-setting and process management, supported by the collective e?orts of all employees, the Companyachieved its target of zero safety incidents in 2024.
Development of the Workplace Safety SystemWorkplace Safety Accountability
In accordance with the State Council's Five Provisions onStrengthening the Safety Management in the Productionof Enterprises, Orinko's major production bases haveestablished a workplace safety accountability system,and signed the Letter of Commitment on WorkplaceSafety Accountability with principal safety o?cers of allfunctional departments. All factories have implementedthe safety accountability system with commitment letterssigned at every level.
In 2024, Orinko's major production bases enhanced workplace safetytraining to ensure improved safety awareness and operational skillsamong employees. Training topics covered three-level safety educa-tion for new employees, specialized safety training, and comprehen-sive safety training. The training content included workplace safetylaws and regulations, safe operation procedures, and accident caseanalysis. These training sessions enhanced employees' safety aware-ness and operational capabilities, reduced "three violations" (viola-tion of procedures, discipline, and safety rules), and e?ectively pre-vented and reduced the occurrence of accidents.
Workplace Safety Training
Average hours of safetytraining per employeeAverage hours of safetytraining per employee
"Workplace SafetyMonth" Events
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
June 2024 marked the 33
rdWorkplace Safety Month inChina. Orinko's major production bases actively respondedto the campaign themed "Safety ?rst for everyone, emer-gency readiness for everyone". In alignment with relevantdirectives issued by local governments, the Companypromptly formulated an activity plan and ensured its imple-mentation through comprehensive publicity and organizedexecution, enabling the campaign to be well-planned,well-arranged, well-inspected, and well-executed.The production bases focused on promoting national work-place safety laws and regulations, workplace safety knowl-edge, and the Company's internal workplace safety man-agement system, with the goal of enhancing employees'safety awareness and accident prevention capabilities. Awide range of engaging and informative activities werelaunched, along with intensi?ed e?orts to identify and recti-fy potential hazards. These initiatives enhanced recognitionof workplace safety across the organization, improved safetymanagement mechanisms, elevated the quality of work-place safety management, strengthened risk preventioncapabilities, and e?ectively eliminated potential hazards,yielding signi?cant outcomes and ensuring workplacesafety.
"Fire Safety Month" EventsTo build a harmonious and safe factory environment and foster a strong culture of ?re safety, Orinko takes active steps to enhance?re awareness among all employees. In strict accordance with the National Outline for Fire Safety Publicity and Education, theCompany has made solid e?orts to implement the "Fire Safety Month" campaign. In November 2024, major production bases ofOrinko o?cially held kick-o? ceremonies to launch the "Fire Safety Month" initiative.
Workplace Safety Initiatives
Nighttime dormitory emergency evacuation drillSpecialized training on ?re protection systems
Fire safety quiz with prizes
Dual Prevention Mechanism
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
At all major production bases, Orinko has established a "six-mechanism" safety risk controlsystem to implement hierarchical management of safety risk areas. Risk points are evaluat-ed, with supporting tools such as risk data collection/review/reporting ?owcharts, risk classi-?cation methods and standards, risk rating (risk matrix), early warning grading standards,and a structured risk control process. Over 80 types of hazards were identi?ed, including me-chanical injuries, burns, electric shocks, object strikes, vehicle-related risks, ?res, and fallsfrom height.
Risk Classi?cation & Controland Hazard Investigation & Recti?cation
Divide unitsIdentify risk pointsIdentify sources of hazardsEvaluate risks and determine risk levels
Develop preventive measuresDe?ne early warning levelsDevelop response proceduresPrepare emergency response plans for accidentsAssign responsible persons for risk control
Continuous improvement
Occupational Health and Safety
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
Orinko strictly complies with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and other relevant lawsand regulations. It has established institutional documents such as the Responsibility System for Occupational Disease Hazard Prevention and Control, theOccupational Disease Hazard Warning and Noti?cation System, and the Publicity, Education and Training System for Occupational Disease Prevention andControl, to regulate employees’ work practices, strengthen supervision and risk control, and e?ectively protect employees' occupational health and safety.All major production bases have continuously improved their occupational health and safety management systems and obtained ISO 45001 OccupationalHealth and Safety System certi?cation.The Company places great importance on employees' occupational health, treating it as a key aspect of its ESG management. Orinko is committed toensuring a healthy and safe working environment for employees and continuously improves its occupational health management measures to enhanceboth work quality and quality of life for employees. To achieve this goal, the Company has adopted the following measures:
Development of the Occupational Health and Safety System
When signing labor contracts with employees in positions exposed to occupationaldisease hazards, the Company truthfully informs them of potential occupationalhazards and their consequences, as well as protective measures, and clearlyincludes this information in the labor contract.In accordance with the Technical Speci?cations for Occupational Health Surveil-lance (GBZ188-2014), the Company formulates an annual plan for occupationalhealth examinations, and selects hospitals with corresponding quali?cations to pro-vide physical examinations for employees, aiming to prevent the occurrence ofoccupational diseases and strengthen occupational health management throughregular health checkups.Subsidiaries and branches are required to provide employees exposed to occupa-tional hazards with personal protective equipment that meets national standards,free of charge, and o?er training and supervision to ensure proper use of personalprotective equipment. Warning signs are placed in workplaces, job positions, equip-ment, material packaging, and storage areas where occupational hazards are pres-ent, and occupational health bulletin boards are set up in prominent locations, toraise employee awareness.
The Company strictly enforces the "Three Simultaneities" occu-pational health policy for construction projects, ensuring thatoccupational health facilities are designed, constructed, andcommissioned simultaneously with the main project. This guar-antees the e?cient operation of supporting occupationalhealth equipment and reduces occupational health risks in theworkplace.
For employees exposed to occupational risks, correspondingmeasures are taken as required, along with regular re-examina-tions.
Employees engaged in hazardous or toxic operations arerequired to undergo occupational health examination beforetaking the job, during employment, and upon departure. In theevent of an emergency in the workplace, immediate healthexaminations must be conducted.
2024 Environmental, Social and Corporate Governance (ESG) RepoPutting People First, Building a Defense Line to Ensure Safety
Occupational Health AssessmentOccupational Disease Prevention
The Company has establisheda comprehensive occupationalhealth management systemthat covers occupationalhealth assessments, occupa-tional disease prevention,work-related injury manage-ment, health monitoring, andreporting. Responsibilities andobligations are de?ned inaccordance with relevant stan-dards and regulations, withregular reviews and continu-ous improvements in place.
For occupational diseaseprevention, Orinko hasprepared documents such asthe Pre-assessment Report onOccupational Disease Hazards,the Special Plan for the Designof Occupational DiseasePrevention Facilities, and theAssessment Report on ControlE?ect of Occupational DiseaseHazards. Employees areprovided with relevant trainingand guidance on occupationaldisease prevention andprotection.
The Company regularly orga-nizes occupational healthtraining and educational activ-ities to enhance employees'awareness of occupationalhealth and self-protectioncapabilities.
Manage and record work-related injury incidents, con-duct investigation and analysis, and propose improve-ment measures.
Assist employees in applying for work-related injurycompensation and provide necessary medical andrehabilitation support.
Work-relatedInjuryManagement
Orinko complies with relevant occupationalhealth regulations and standards to ensure theCompany's occupational health practices alignwith legal and regulatory requirements.
Compliance and Regulatory Adherence
Orinko regularly conducts ISO 45001 OccupationalHealth and Safety Management System audits andprovides relevant occupational health data andinformation.
Participation rate inoccupational healthexaminationsParticipation rate inoccupational healthexaminations100%
Orinko conducts annual occupationalhealth assessments for employees, includ-ing physical examinations and occupa-tional disease screenings. In 2024, the par-ticipation rate for occupational healthexaminations reached 100%.Hazards and risks in the workplace areassessed, and occupational diseasehazard factors are monitored regularly toensure the implementation of e?ectiveoccupational health control measures.
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Embracing Diversity and Shared Growth,Ful?lling Corporate Responsibility
Protection of Employees' Rights and Interests ??Human Resources Management ??Employee Development and Training System ??Employee Promotion and Career Development ??Employee Care ??Public Welfare and Charity ??
Protection of Employees' Rightsand Interests
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Orinko strictly complies with the Labor Law, the Labor Contract Law, and other relevant laws andregulations. It signs labor contracts with employees, makes timely contributions to social insur-ance and housing provident fund, and ensures full and punctual salary payments. The Companyemphasizes the protection of minors and strictly prohibits the employment of child labor. Itrespects employees' freedom of association, allowing them to lawfully organize or join laborunions and other social organizations. In recruitment, hiring, and promotion, discriminationbased on race, gender, age, religion, ethnicity, disability, or place of residence is strictly prohibit-ed, ensuring all employees have equal access to fair opportunities. Reasonable working hours arearranged to protect employees' lawful rights and interests.
Labor Management
Respecting and caring for every employee, Orinko re?nes its implementation of labor laws andregulations through detailed internal regulations and disciplines to standardize management.The Company continuously improves its workplace safety system and operating procedures andregularly organizes safety training and educational activities to enhance employees' workplacesafety awareness and emergency response capabilities. Various safety activities, such as the"Workplace Safety Month" campaign, ?re drills, and safety competitions, are actively carried outto strengthen accident prevention and safety awareness. The Company also strictly complies withlaws and regulations on occupational health, establishes detailed occupational health manage-ment systems, provides free occupational health examinations and necessary protective equip-ment, and posts warning signs in workplaces to ensure employees' health and safety.
Employee Safety and Labor Protection
Human ResourcesManagement
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Upholding the spirit of continuous innovation and pursuit of excel-lence, Orinko actively embraces globalization by recruiting collegegraduates, experienced professionals and high-level talents. TheCompany attracts top industry professionals, international talents,and high-potential graduates from the world's top 30 universities inthe materials ?eld, aiming to deliver world-class, competitive prod-ucts and services.As of 2024, Orinko has employed over 2,270 sta? members. The R&Dand marketing teams are composed of individuals with master's ordoctoral degrees or specialized knowledge in materials science. In2024 alone, the Company recruited over 170 college graduates andseveral renowned industry experts and overseas professionals.
Employee Recruitmentand Employment
Employee compensation primarily consists of: ?xed salary, welfare subsi-dies, short-term incentive bonuses, and long-term incentive bonuses(such as equity). Employee bene?ts mainly include: social insurance ((in-cluding pension, medical, unemployment, work-related injury, and mater-nity insurance) and housing provident fund, meal subsidies, holiday gifts,regular team-building activities, annual physical examinations, companydormitories, and commuter shuttles.
Employee Compensation and Bene?ts
Compensation Management Principles
Short-term incentives
Monthly performance bonuses, pro-cess-based incentives, recognitionawards, commissions, annual perfor-mance bonuses, etc.
Medium- to long-term incentivesEquity incentives, among others.
Number of employeesNumber of employees2,279
College graduates recruited in ????College graduates recruited in ????170+
Strategicalignment
Compensation aligns with the Company's overall strategy, with a focus on rewardingstrategic talents.Relativefairness
Salaries are determined based on job value to re?ect internal equity, while alsobenchmarking against the market to ensure competitiveness for key talents.Adjustments to base pay and distribution of variable pay are tied to performance,ensuring that dedicated employees are fairly rewarded.Employee income is linked to the Company's business performance—the better theCompany performs, the more employees share in its success.
Performance-orientedBene?tsharing
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Employee communication is a vital component of e?ective internal communication. It involves conveying information to em-ployees, establishing communication channels, identifying issues, and ?nding solutions. E?ective communication enhancesthe Company's continuous development, drives internal collaboration, serves as a key tool for problem-solving, and acts as acrucial bridge for employee engagement and feedback.
Employee Communication
OA o?ce systemAllows employees to access o?cial docu-ments and send internal emails.FeishuEnables seamless information exchangeamong all employees.Chairman's mailboxAllows all employees to o?er suggestions,report misconduct, or submit complaintsdirectly.Employee suggestion boxProvides an anonymous feedback channelto encourage employees to raise issuesand o?er suggestions.
Including team meetings, weekly,monthly, biannual and annual meet-ings, employee forums, dormitory visits,and interdepartmental exchange ses-sions, which provide opportunities forface-to-face communication among em-ployees, between sta? and manage-ment, and across departments.
Regular meetings
Held at least once every quarter toguide employees to improve their workperformance and advance their person-al development.Performance reviews
Carried out annually through question-naires to gather comprehensive feedbackon work, life, company policies, interper-sonal relationships, employee growth, andcorporate development.
Employee satisfaction surveys
Regularly organized to encourage cost-re-duction and e?ciency-enhancing sugges-tions, tapping into employees' collectivewisdom to improve the Company's econom-ic performance.
Rationalization proposal initiatives
Employee communication channels within the Company mainly fall into two categories: online communication and o?inecommunication.Online communicationO?ine communication
Employee Developmentand Training System
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Guided by its strategic priorities, Orinko has built a multidimen-sional talent development system. In 2024, the Company centeredits e?orts on a tiered and categorized training framework, integrat-ing diverse online and o?ine learning scenarios. Over the year,Orinko conducted more than 800 customized training sessions,achieving 100% employee coverage, with an average of 9.5 traininghours per employee and 13,301 training attendances recorded.The Company also launched the innovative "Orinko Star TrainingCamp" to help emerging talents grow into strategic talent pipe-lines, with plans to further enhance the training model in 2025.
Employee Development
Customizedtraining sessions800+Average training hoursper employeeAverage training hoursper employee
9.5
AttendancesrecordedAttendancesrecorded
13,301
EmployeecoverageEmployeecoverage
100%
CaseThe 24th Orinko Star Training CampTo support the rapid growth of emerging talents, the Company innovatively launched the 24thOrinko Star Training Camp, with over 170 new campus recruits in 2024. Adopting business orien-tation and combination of training and practical experience as the core philosophy, the programdeveloped a curriculum system driven by cultural identity and business understanding, invitingexternal experts and Company executives to give lectures on corporate culture, product knowl-edge, and career advancement skills, fostering strategic vision and a strong sense of organiza-tion belonging. The program introduced an innovative four-site rotational model, allowing par-ticipants to gain in-depth experience of the entire production process through rotations acrossdi?erent production bases and workshops. A horizontal competition mechanism was embed-ded in localized project management, stimulating innovation momentum through a standard-ized evaluation system and real-time score display. Additionally, the program built athree-in-one mentorship model, where business mentors guided professional advancement,career mentors supported career path planning and HR mentors enhanced soft skills, enablingmulti-dimensional growth of participants through job rotations and phased performancereviews. The training camp received an overall satisfaction rate of 98%. In 2025, the Companywill further enhance the data-driven dynamic assessment model, continuously strengthen orga-nizational talent pipeline and increase the density of high-potential talents.
Overall satisfaction rateof the training camp98%
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Orinko has established a comprehensivetraining system that includes tiered andcategorized internal training as well asprofessional training by external experts,supporting employees' continuousgrowth and career development.
Employee Training
To support the Company's growth,strengthen knowledge management,and foster a learning-oriented organiza-tion, Orinko launched several initiativesin 2024 such as focused capability build-ing and modular course coaching todevelop an internal trainer team, shift-ing from reliance on external resourcesto cultivating internal expertise. As aresult, 55 employees successfullypassed certi?cation. Additionally, inalignment with trainer schedules andbusiness priorities, Orinko regularlyhosted internal knowledge seminarscovering manufacturing, R&D, business,?nance, planning, and lean manage-ment, attracting over 1,000 participants.
Internal TrainingDevelopment
In 2024, Orinko restructured its external trainingmodel to support strategic transformation andorganizational capability upgrading, shifting fromstandardized knowledge input to value-drivencapability development. On one hand, the Com-pany actively invited experts across various ?eldsto build specialized knowledge systems. In mar-keting, Orinko implemented the LTC processmanagement while strengthening the "iron trian-gle" system, to deliver systematic solutions forcustomers, thereby enhancing the Company'sbrand reputation. In manufacturing, initiativessuch as Lean Improvement Week and in-depthOBS system training enabled lean competencycerti?cation of core leaders, supporting the con-struction of benchmark factories. On the otherhand, targeted training programs were launchedfor the management team, covering areas suchas strategic planning and deployment, organiza-tional transformation, and digital process devel-opment. Senior executives also engaged inbenchmarking visits and industry forums toenhance business thinking and strategic execu-tion capabilities. This structured, tiered talentdevelopment system provides critical talent sup-port for the Company's strategy of "customerorientation, product leadership, lean operations,and sustainable development".
Introduction of ExternalTraining ResourcesCaseOrinko Trainer Evaluation and Certi?cationTo meet the Company's growing training needs and promote the inheritance of knowledgeand wisdom, Orinko launched a trainer evaluation initiative in June 2024 to select and certifyinternal trainers with strong professional capabilities and e?ective teaching skills.
Employee Promotion and Career Development
2024 Environmental, Social and Corporate Governance (ESG) Repo
To align with the Company's strategic priorities of customer orientation,product leadership, lean operations, and sustainable development,while better attracting, motivating, and retaining top talents, Orinko car-ries out its employee promotion initiatives based on the following threeprinciples:
Employee Promotion
Orinko highly values employees’ career development. Ithas established a multi-channel promotion mechanismthat includes management and professional career tracks,supporting both vertical promotion and horizontal devel-opment. Through talent review, the Company builds atalent pipeline, and enhances job rotation and vitalitymechanisms, e?ectively stimulating talent engagement.Employee career development is deeply integrated intothe corporate governance system to support organization-al capability enhancement.
Employee Career Development
Orinko implements multi-channel position managementthat includes management and professional career tracks,supporting both vertical promotion and horizontal devel-opment. The management pathway includes functionalmanagement and production management, while the pro-fessional pathway covers areas such as strategic opera-tions, marketing, technical R&D, production operations,process coloring, quality management, supply chain,?nancial management, human resources, informationtechnology, legal management, technology management,administrative management, and operational support.
Construction of CareerDevelopment PathwaysIt adheres to the princi-ples of openness, fair-ness, and impartiality incomprehensive assess-ments of employees' jobcompetency.
In principle, employees are pro-moted progressively. Employeeswith signi?cant contributions andoutstanding performance will begranted accelerated promotionopportunities.
Objective evaluation
Progressive promotion
Talent management allows forupward or downward mobility, aswell as entry and exit, providing?exibility.
Dynamic management
Embracing Diversity and Shared Growth, Fullling Corporate Responsibility
Employee Care
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
Orinko organizes a wide variety of activitiesfor employees during various holidays andtraditional festivals, such as the LanternFestival, International Women's Day (March
8), Mother's Day, Father's Day, Mid-Autumn
Festival, National Day, and more. The Com-pany provides various bene?ts to employ-ees and organizes team-building trips eachsummer. To enrich employees' leisuretime, it has built facilities such as basket-ball courts, badminton courts and gyms,and organizes various competitions likeskill contests, tug-of-war, basketball games,shuttlecock kicking, and badminton com-petitions. These activities help enhanceemployees' competitiveness and teamspirit. The Company also periodically orga-nizes ?exible competitions and employ-ee-led innovation activities. These initia-tives help cultivate a sense of dedicationand commitment to the job, strengthenemployees' sense of ownership, stimulateinnovation, and unleash employees' initia-tive and enthusiasm
In 2024, the Company renovated and upgraded employ-ee dormitories, improving the supporting facilities tobetter serve sta? needs.
Dormitories
In 2024, the Company continually introduced new menuitems in the Canteen, enhancing the quality of meals toensure employees enjoy healthier, safer, more nutritious,and balanced food.
Canteen
To improve commuting convenience for employees, theCompany o?ers shuttle bus services, addressing theissue of long commutes.Shuttle Service
In 2024, the Company carried out a comprehensive renovation and redesign of the o?cebuilding, providing employees with a more comfortable and aesthetically pleasingmodern workspace.
O?ce Environment
Public Welfare and Charity
2024 Environmental, Social and Corporate Governance (ESG) RepoEmbracing Diversity and Shared Growth, Fullling Corporate Responsibility
CaseCharity Program for Student SupportOn October 25, 2024, the Party branch secretary and sta? of Orinko Advanced Plastics Co., Ltd.visited Fengle Town Central School in Feixi County, Hefei, Anhui Province to carry out a charityprogram for student support. Orinko provided scholarships and supplies to ten outstandingstudents.As a publicly listed company, Orinko actively ful?lls its social responsibilities. While pursuingits own development, the Company also dedicates part of its resources and e?orts to publicwelfare, giving back to society through concrete actions.
CaseCharity Campaign to Support Agricultural ProductIn November 2024, Orinko launched an internal charity campaign titled "Support RuralRevitalization by Purchasing Agricultural Products". Organized by the Company's Partybranch, the campaign encouraged employees to purchase specialty agricultural prod-ucts—rice and lotus root starch—from Jianggang Village in Fengle Town, Feixi County,Hefei, Anhui Province. The campaign, open to all employees, aimed to boost the salesof agricultural products from Jianggang Village through compassionate consumeraction, helping increase farmers' income and contributing to rural revitalization.
Appendix
Appendix
2024 Environmental, Social and Corporate Governance (ESG) Repo
Key ESG Performance in 2024Ⅰ. Governance
Corporate governance performanceNumber of generalmeetings ofshareholders held
Number of resolutionsreviewed at generalmeetings of shareholders
Number ofboard meetings held
Number of resolutionsreviewed atboard meetings
Number of supervisoryboard meetings held
Number of resolutionsreviewed at supervisory board meetings
Business ethics performance
Con?rmedcorruption incidents
Con?rmed unfair competitionand antitrust violations
Number ofanti-corruptiontraining sessions
Number of employeeswho participated inanti-corruption training
Percentage of employees who signed the business ethicscommitment letter100%
Average hours of anti-corruption training per employee
1.2
R&D and innovation performance
R&Dinvestment
RMB 275,119,851.69
R&D investmentas a percentageof total revenue
4.52%
Number ofR&D sta?
R&D sta? as a percentageof total workforce
24.84%
Information security performanceComplaints related to customer privacy violations
Con?rmed incidents of customer data leakage, theft, or loss
2024 Environmental, Social and Corporate Governance (ESG) Repo
Appendix
Intellectual property performanceCumulative intellectualproperty rights obtained
Total investment inenvironmental protectionRMB 20.25 million
Total water withdrawal558,272.84 tons
Number of environmentalviolations and penalties
Of which,cumulative granted patents
Intellectual property rightsobtained during thereporting period
Of which,granted patents
Ⅱ. Environmental
Organizational GHG emissions
Water resource management performance
Energy management performanceEnergy consumption in production operationsTotal electricity consumption in productionPurchased electricity204,623.53 MWh
Rooftop photovoltaicself-generated electricity17,289.57 MWhNatural gas consumption448,848.88 m?
Diesel consumption
0 tons
Environmental management performance
Total waste generated3,131.44 tons
Compliance ratefor waste treatment100%Hazardous waste
274.855 tons
Non-hazardous waste
2,856.585 tonsTotal wastewaterdischarged558,272.84 tons
Total exhaust gas emissions
2,811,831,600 m?
Waste management performance
Employee rights and interests performanceLabor contract signing rate
100%
Social insurance coverage rate
100%
Employee rights and interests performanceNumber of public welfare and charity activities conducted
Ⅲ. Social
Total GHG emissions
1,455,614.97tCO2
Of which: Scope 1 emissions
1,087.23tCO2Of which: Scope 2 emissions
110,959.35tCO2GHG emissions reduced through carbon reduction measures
231,903.46tCO2
Of which: Scope 3 emissions
1,343,568.39tCO2
221,913.1 MWh
2024 Environmental, Social and Corporate Governance (ESG) Repo
Appendix
Employee employment performanceTotal number of employees2,279
Male
1,866
Female
1,129
Functional sta?Sales sta?R&D sta?Production &manufacturingsta?
2,056PhDMaster’sBachelor’s and below
By educational background:
By profession:
Employee training performance
Total training hoursfor employees8,535
Average training hoursper employee
9.5
Major ?reaccidents
Work-related fatalitiesand serious injuries
Recti?cation rateof potential hazards
100%Employee workplacesafety education and training rate
100%Facility and equipmentmaintenance rate100%
Average hours of safetytraining per employee
Average training hoursper new employee
Coverage rateof new employeetraining100%
Percentage of employees regularlyassessed for performanceand career development100%Occupational health and safety performance
Occupational health and safety performance
Number of work-relatedfatalities of direct employees
Occupational diseaseincidence rate
Occupational health examination participation rate100%
Total number of suppliers
Supplier Management Performance
Of which, domestic suppliers
Of which,overseas suppliers
Number of new suppliers addedduring the reporting period
Number of suppliers eliminated during the reporting period
Percentage of newly introduced suppliers selected based onenvironmental standards100%
Environmental
Climate change tacklingPollutant dischargeWaste disposal
Environmental compliancemanagementEnergy usageUsage of water resourcesCircular economy
Article 21-28Article 30Article 31
Article 33Article 35Article 36Article 37
Low-Carbon Transition, ReshapingIndustry EcosystemsProtecting Environment, Building a GreenHome TogetherIndustry EcosystemsProtecting Environment, Building a GreenHome TogetherIndustry Ecosystems
Protecting Environment, Building a GreenHome TogetherIndustry EcosystemsProtecting Environment, Building a GreenHome TogetherIndustry EcosystemsProtecting Environment, Building a GreenHome TogetherIndustry EcosystemsLow-Carbon Transition, ReshapingIndustry Ecosystems
During the reporting period, the Company’soperating sites were not located in protectedareas, and its business activities did not haveany signi?cant negative impact on ecosystemsor biodiversity.
Article 32Ecosystem and biodiversityprotection
No.TopicArticleCorresponding Section in This Report
GovernanceNo.TopicArticleCorresponding Section in This Report
Due diligenceCommunications with stakeholdersAnti-commercial bribery
and anti-corruptionAnti- unfair competition
Article 52Article 53Article 55Article 56
Sustainable Development ManagementSustainable Development ManagementEnsuring Integrity and Transparency, Practising
Normative GovernanceEnsuring Integrity and Transparency, Practising
Normative Governance
Index of Reporting Indicators
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulationof Listed Companies—Sustainability Report (Trial)
2024 Environmental, Social and Corporate Governance (ESG) Repo
Appendix
No.TopicArticleCorresponding Section in This Report
Social
Rural revitalizationContributions to the societyInnovation-driven
Article 39Article 40Article 42
Embracing Diversity and Shared Growth, Ful?lling
Corporate ResponsibilityEmbracing Diversity and Shared Growth, Ful?lling
Corporate ResponsibilityMaking Innovations, Empowering
Industrial Development
Supply chain securityArticle 45Equal treatment to smalland medium-sized enterprises
Article 46
Safety and quality ofproducts and servicesData security and customerprivacy protectionEmployees
Article 47Article 48Article 50
Maintaining Steady Growth, Upholding
Value CreationEnsuring Integrity and Transparency, Practising
Normative Governance
During the reporting period, the Company had nooutstanding payments overdue to small andmedium-sized enterprises. As of the end of thereporting period, there were no accounts payable(including notes payable) exceeding RMB 30billion or accounting for more than 50% of totalassets.Embracing Diversity and Shared Growth,Ful?llingCorporate Responsibility Putting People First,Building a Defense Line to Ensure Safety
During the reporting period, the Company’sbusiness did not involve scienti?c and technolog-ical ?elds such as genetics or AI ethics, nor did itsproduction and operations involve any activitiesrelated to ethics of science and technology.Ethics of science and technology12Article 43
Maintaining Steady Growth, Upholding
Value Creation