ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
CONTENTS
CONTENTS
Innovation-Driven Value
About this Report 01 Standardized Operation for
Enhanced Governance Enhancement
Message from the 03
Chairman
Standardized Governance Operation 25 Innovation-Driven Development 63
Sustainable Development 05 Management of Directors' and Senior Executives' 27 Ensuring Reliable Quality 69
Highlights in 2025 Remuneration
Responsible Supply Chain 75
About YUEAN 07 Establishing Robust Risk Control Measures 27
Data Security Protection 79
Strengthening Investor Relations Management 29
Sustainable Development 15
Adherence to Business Ethics 31
Sustainable Development Governance 17 Adhering to Party-Building Leadership 33
Stakeholder Communication 19
Management of Importance Issues 20 Forward Outlook 105
Appendix 106
Low-Carbon Leadership for Fulfilling Responsibilities for
Indicator Indicator 106
Green Development Shared Social Value
Feedback 108
Climate Change Response 37 Protection of Employee Rights and Interests 85
Environmental Compliance Management 44 Supporting Employee Development 91
Resource Recycling 55 Occupational Health and Safety 94
Demonstrating Social Responsibility 102
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
About this Report Names and Abbreviations
For ease of expression and readability, “JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD." is also referred to as
“YUEAN ," "the Company," or "we" in this report. In addition, the terms "country" and "government" in this report refer
to the People's Republic of China and its administrative agencies.
This report is the third environmental, social, and governance ("ESG") report released by JIANGXI YUEAN ADVANCED
MATERIALS CO.,LTD. (hereinafter referred to as "YUEAN," "the Company," or "we"). Prepared in accordance with the Company Abbreviation Company Full Name
principles of objectivity, standardization, transparency, and comprehensiveness, this report provides a detailed
disclosure of YUEAN's ESG philosophies, practices, and performance for the year 2025. YUEAN , the Company, the headquarters, we JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD.
Ningxia YUEAN Ningxia YUEAN Advanced Materials Technology Co., Ltd.
Reporting Scope Ganzhou YueLong GanZhou YueLong Advanced Materials Co., Ltd.
This report is based on JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD. As the main entity, including its subsidiaries,
branches, and directly affiliated institutions. Unless otherwise indicated, the scope of this report is consistent with that
of the Company's annual report. Access to the Report
You can view or download this report from the Shanghai Stock Exchange (https://www.sse.com.cn),
Reporting Period
CNINFO (http://www.cninfo.com.cn), or the official website of JIANGXI YUEAN ADVANCED MATERIALS
CO.,LTD.(http://www.yueanmetal.com).
The time frame of this report is from January 1, 2025, to December 31, 2025 (the "Reporting Period"). To enhance
comparability and completeness, certain sections may include appropriate retrospective information or forward-looking
statements.
Feedback
If you have any comments or suggestions regarding this report, please feel free to contact us through the following
Time Range for Impacts of Risks and Opportunities in the Report
channels.
In the report, the time ranges for the impacts of risks and opportunities are defined as follows: short-term as within 1
year, medium-term as 1 to 5 years, and long-term as more than 5 years. Email: stock@yueanmetal.com
Tel: 0797-8705008
Preparation Reference Address: Xinhua Industrial Park, Dayu County, Ganzhou City, Jiangxi Province
Shanghai Stock Exchange. Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies
- Sustainability Report (Trial).
China Enterprise Reform and Development Society. Chinese Corporate Sustainable Development Report Guide
(CASS-ESG 6.0).
United Nations. Sustainable Development Goals (SDGs): A Corporate Action Guide.
Global Reporting Initiative. Sustainability Reporting Standards (GRI Standards).
Data Description
All information and data cited in this report are derived from the Company's official documents, statistical reports,
financial reports, as well as internal data and publicly available information from various functional departments and
operating units that have been compiled, summarized, and reviewed by the Company. Should there be any
discrepancies between financial data presented herein and the annual report, the annual report shall prevail. Unless
otherwise specified, all currency amounts in this report are denominated in Renminbi (RMB).
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Regarding Social Responsibility (S)
Guided by the philosophy of "co-prosperity, co-growth, empowerment through development," we proactively assumed
responsibilities and actively engaged in initiatives to convey corporate warmth. Internally, we consistently regard our
employees as the Company's most valuable asset. We continuously improved the system for safeguarding employee
rights and interests, strengthened occupational health and safety management, established diversified career
development platforms, strengthened talent cultivation and recruitment, cared for the physical and mental well-being
of our employees, and continuously enhanced their sense of belonging and happiness. Leveraging platforms such as
the Provincial Enterprise Technology Center and the Jiangxi "Haizhi Plan" Workstation, we continued to gather industry
elites, deepen industry-university-research collaboration, cultivate high-quality innovation teams, and inject vitality into
the development of industry talent. Externally, we upheld the bottom line of integrity-driven operations, jointly building
a responsible supply chain with upstream and downstream partners to promote the collaborative and sustainable
development of the industrial chain. We actively engaged in social welfare initiatives, contributed to rural revitalization,
participated in charitable assistance programs, cared for vulnerable groups, and, through concrete actions, reciprocated
Message from the Chairman the trust and support from all sectors of society, fulfilling our responsibilities and commitments as a corporate citizen.
Simultaneously, we continued to deeply invest in technological innovation, tackling core technical challenges and
driving product upgrades and iterations. By utilizing high-performance micro-nano metal powder materials as
Dear Shareholders, Partners, Colleagues, and Friends from All Sectors of Society, substitutes for imported products, we addressed critical material bottlenecks in key domestic sectors, empowering the
Greetings to you all! sustained and healthy development of downstream industries such as electronic components, automotive electronics,
The year 2025 marks a critical year for the in-depth advancement of the nation's "carbon peak and carbon neutrality" and new energy.
goals, as well as a crucial year for the manufacturing industry to accelerate green transformation and pursue high-
quality development. As a high-tech enterprise deeply engaged in the field of micro-nano metal powder new
materials,YUEAN firmly believes that ESG is not merely a "plus point" for corporate growth but a "lifeline" for long-term
Regarding Corporate Governance (G)
development, representing the core pathway to achieving the symbiotic coexistence and shared prosperity of business
Adhering to the principles of "standardized operation, transparency, and efficiency," we continuously improved our
and social value. Over the past year, adhering to the core philosophy of "Enabling Sustainable Development through
governance system and enhanced governance effectiveness. In 2025, we further strengthened the coordinating role of
Technological Innovation," we deeply integrated ESG principles into every facet of our corporate strategy, production
the ESG Strategy Committee, clarified the ESG responsibilities of various departments, and promoted the normalization,
operations, and R&D innovation. Through concrete actions, we fulfilled our solemn commitments to "green
institutionalization, and standardization of ESG management. We consistently improved our corporate governance
development, integrity-driven operations, employee care, and social contribution," achieving the successful
structure, established a sound performance and compensation system for directors and senior executives, enhanced
implementation of all ESG tasks for the year.
investor relations services, and safeguarded the legitimate rights and interests of shareholders. We upheld business
ethics, improved operational efficiency and management standards, and ensured scientific decision-making,
standardized operations, and transparent information disclosure. We strictly adhered to the relevant guidelines of the
Regarding Environmental Responsibility (E)
Shanghai Stock Exchange, the China Enterprise Sustainable Development Report Guide, and the UN Sustainable
Development Goals (SDGs), ensuring standardized conduct of ESG information disclosure, guaranteeing the
We stayed true to our original aspiration of "green manufacturing and circular development," consistently deepening
truthfulness, accuracy, completeness, timeliness, and fairness of the report content, and proactively accepting oversight
our green transformation practices. Building upon our designation as a provincial "Green Factory" and our certifications
from all sectors of society.
for the ISO 50001 Energy Management System and ISO 14001 Environmental Management System, we further
increased environmental investments and technological upgrades, optimized production process flows, and advanced
energy conservation, emission reduction, and resource recycling. We continuously promoted the efficiency and With our initial commitment burning bright and responsibilities firmly on our shoulders, we know that only through
effectiveness of our photovoltaic power generation project, effectively substituting traditional energy consumption and persistent and dedicated effort can we achieve lasting success. YUEAN will deeply pursue the philosophy of
reducing carbon emission intensity. In the production process, we creatively adopted recycled materials and mineral sustainable development with greater resolve, more pragmatic actions, and a more open attitude, striving to become a
ores as substitutes for conventional high-purity iron raw materials. This not only significantly reduced raw material benchmark enterprise for ESG practices in the micro-nano metal powder industry. We aim to create more enduring
procurement costs but also facilitated the resourceful utilization of industrial waste, enabling the efficient extraction value for shareholders, build a broader platform for employees, contribute more substantially to society, and join hands
and recovery of valuable precious metal by-products, thereby deeply embodying circular economy principles and with all stakeholders to stride towards a green, low-carbon, and high-quality future.
driving the green upgrade of the carbonyl iron powder production process. Concurrently, we rigorously implemented
Thank you all!
environmental compliance management requirements, strengthening the full-process standardized treatment of
wastewater, waste gases, and solid waste, continuously enhancing energy efficiency, and striving to build a "green
factory benchmark" characterized by "harmless raw materials, cleaner production, resourceful waste utilization, and
low-carbon energy." We are committed to protecting the ecological environment through tangible actions and
JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD. Chairman of the Board:
contributing to the achievement of the "dual carbon" goals. Li Shangkui
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Sustainable Development Highlights
in 2025
Economic Performance Governance Performance
Total Assets 107,841.06 Net Profit 8,290.22 (10,000 RMB) Shareholders' Meetings Held 1 (Sessions) Board of Directors Meetings Held 8 (Sessions)
(10,000 RMB)
Operating Revenue 43,753.15 Net Profit Attributable to Parent Company Penalties for Information Disclosure Violations 0 (Incidents)
(10,000 RMB)
Environmental Performance Social Performance
Total Environmental Investment Environmental Protection Tax Paid
Environmental Violations 0 (Incidents) Environmental Training Sessions 12 (Sessions) Employee Training Coverage Rate 100 % Labor Contract Signing Rate 100 %
Total Energy Consumption 6,075.54 Total Greenhouse Gas Emissions
Social Insurance Coverage Rate 100 % Employee Medical Examination Coverage
(Tonnes of Standard Coal) 25,191.88 (tCO₂e) Rate 100 %
Greenhouse Gas Emission Intensity 0.58 Total Water Consumption 131,938 (Tonnes)
(tCO₂e / 10,000 RMB Revenue)
Investment in Work Safety 422.28 Total Safety Training Hours11,050 (Hours)
(10,000 RMB)
Water Consumption Intensity 3.02 Work Safety Accidents 0 (Incidents)
(Tonnes / 10,000 RMB Revenue)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
About YUEAN Company Business and Products
The Company's main products are micro-nano metal powders and deep-processed products, including Carbonyl Iron
Powder, Atomized Alloy Powder, Soft Magnetic Powder, Metal Injection Molding (MIM) Feedstock, and Microwave
Absorbing Material series. Among these, Carbonyl Iron Powder and Atomized Alloy Powder are the core base
materials. They can be sold directly or further processed according to customer requirements into higher-value-added
Company Profile products such as Soft Magnetic Powder, Metal Injection Molding Feedstock, and Microwave Absorbing Materials,
forming an integrated product system from base materials to high-value-added products.
The Company is a high-tech enterprise focused on the field of micro-nano metal powder new materials. Founded in Primary Products Application Scenario Pictures
Code: 688786.SH). The Company has established high-end R&D platforms, including a National Postdoctoral Research
These include Carbonyl Iron Base Powder, Reduced Carbonyl
Workstation, a Provincial Enterprise Technology Center, a Provincial Carbonyl Metal Powder Materials Engineering
Iron Powder, Carbonyl Iron Alloy Powder, Reduced Carbonyl
Research Center, and the Jiangxi Provincial "Haizhi" Talent Workstation. It holds 30 domestic invention patents, 12
Carbonyl Iron Iron Alloy Powder, Phosphated Carbonyl Iron Powder, and
utility model patents, and 2 overseas PCT invention patents. The Company is recognized as a national "Little Giant" Powder Series Carbonyl Iron Phosphide Powder, which are mainly used in
enterprise specialized and sophisticated in niche sectors and a National Manufacturing Single Champion
precision electronic components, magneto-rheological damper
Demonstration Enterprise. It has successively participated in the development of 11 national and industry standards,
suspension, power tools, and other fields. Electron Micrograph of Carbonyl
including "Micron-sized Carbonyl Iron Powder," and has obtained multiple system certifications such as ISO 9001, IATF Iron Powder (8 μm Scale Bar)
iron powder product has been honored as a "Jiangxi Provincial Independent Innovation Product" and has won the
Includes gas-atomized alloy powder and water-atomized
Third Prize of the Jiangxi Provincial Science and Technology Progress Award. The Company's Carbonyl Business Unit
alloy powder series. Mainly applied in products such as MIM-
was awarded the title of "National Worker Pioneer" in 2024. Atomized Alloy
manufactured 3C structural parts, communication base
Powder Series
station structural parts, 3D printed parts, and molded
The Company brings together high-level R&D talents, including two recipients of the State Council Special Allowance, inductors.
Electron Micrograph of Atomized
and maintains long-term industry-university-research partnerships with several universities, undertaking numerous
Alloy Powder (30μm Scale Bar)
national and provincial-level major scientific research projects. Leveraging its proprietary core technologies, the
Company's products cover industrial functional materials and specialized application fields. They are widely used in Includes carbonyl iron soft magnetic powder and atomized
high-end applications such as molded inductors, magnetorheological suspensions, microwave absorption, and alloy soft magnetic powder. Mainly used in manufacturing
electromagnetic shielding, successfully entering the supply chains of leading companies and serving the critical magnetic cores and molded inductors, such as surface-mount
Soft Magnetic
material needs of national defense and specialized sectors. inductors, and filters. These components find downstream
Powder Series
applications in integrated circuits, communication
components, LCD displays, automotive electronics, and 3C
Electron Micrograph of Soft
With over two decades of deep industry experience, the Company has broken through foreign technological products. Magnetic Powder (15μm Scale Bar)
monopolies, addressing critical material bottlenecks. Its products are exported to over thirty countries and regions,
contributing YUEAN's strength to enhancing the international competitiveness and industry influence of domestic
powder metallurgy materials. Includes iron-based alloy feedstock, stainless steel alloy feedstock,
cobalt-based alloy feedstock, high-strength steel alloy feedstock,
Metal Injection
titanium alloy feedstock, etc. Mainly applied for mobile phone
Molding Feedstock
components, wearable smart devices, automotive parts, medical
Series
devices, power tools, and other fields. Physical Picture of Metal
Injection Molding Feedstock
Includes absorbing powders, patches, and coatings. Mainly
Microwave applied in fields such as mobile communication (e.g., mobile
Absorbing phones), RFID, base stations, computers, personal protection,
Materials Series and national defense stealth technology.
Electron Micrograph of Microwave
Absorbing Materials
(200μm Scale Bar)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
History and Milestone The wholly-owned Subsidiary - Ningxia
YueAn’s metal soft magnetic micro-nano
powder production demonstration line
project was founded
The carbonyl division was awarded the
Micron carbonyl iron The Company was firstly
"National Worker Pioneer Award”
powder industrialization recognized as a
project was awarded the "Specialized, Refined, Awarded the 11th Ganzhou Mayor's Quality
"2009 Jiangxi High Characteristic and Novel The Company was listed Award
tech Industry Major The Company was Little Giant Enterprise" by on the STAR Market of
Project” recognized as a "National Ministry of Industry and the Shanghai Stock
High-tech Enterprise” Information Technology Exchange and was
Jiangxi YUEAN Superfine
awarded "National
Metal Co.,Ltd founded
Manufacturing Industry
Single Champion
Demonstration Enterprise”
Ningxia YUEAN Metal Soft
Magnetic Micro-Nano Powder
Demonstration Production
The Company became a The Company's project for an
The Company was approved Line project commenced
High pressure circulating member of the European annual production capacity of
as "Jiangxi Haizhi
carbonyl iron powder Union Powder Metallurgy National Postdoctoral
Workstation” 6,000 tonnes of carbonyl iron
production technology was Association Research Workstation
powder and other series
approved by the Ministry officially launched
products has reached its
of Science and Technology intended usable status. Once
of the People's Republic of The Company was the project passes safety
China as the "Technology recognized as a acceptance approval and
Innovation Fund for Small "Jiangxi reaches full production, the
and Medium sized Specialized, annual production capacity for
Technological Enterprises" Refined, this series of products will
Characteristic and reach tens of thousands of
Novel Small and tonnes
Medium-sized
Enterprise”
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Organizational Structure Honers and Awards in 2025
YUEAN’s Organizational Structure
Honorary Title Awarding Institution Honor Pictures
Shareholders’ Meeting
The Strategic Committee
The Audit Committee
Company Annual Growth CBN, EY (China), Cyrus Asset Management
Board of Directors
The Technology Enterprise
Committee
The Remuneration and
Assessment Committee
General Manager's Office
Board of Directors Office
Safety and Environment
Marketing Department
Power and Resources
Chief Engineer Office
Finance Department
Production Business
Production Planning
(Provincial Technical
Supply Department
Production Security
R & D Department
Audit Department
Quality Inspection
China Association for Public Companies
Administration
Directors Best Practice Case
Department
Department
Department
Department
Department
Department
Department
Center)
Company Culture Office Excellent Practice Public Companies
Be the global leader and service
To be a first-class enterprise
provider of high-performance
and create a world-renowned
Our Mission Our Vision micro-nano metal powder new
brand.
materials.
ESG Value Transmission Award Technology Co., Ltd.
Innovation is the primary driving
Integrity and dedication, force, technology is the primary
quality and innovation, productive force, and talent is the
Our Purpose Our Policy
excellence and win-win. primary resource.
"Listed Company Board
Continuous learning and staying ahead of China Association for Public
the times Secretary Performance
Honesty and trustworthiness, Companies
Pragmatic, decisive, and efficient Evaluation" 5A Rating
self-motivation, quality first,
Our Corporate Our Values Inherent responsibility, non-delegable
and pursuit of excellence.
Culture Moral character, self-cultivation,
politeness, and love for family
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Honorary Title Awarding Institution Honor Pictures
Industry Association
Metallurgy Innovation Award
Conference (APMA2025)
(Ningxia YUEAN) Powder Metallurgy Branch of China Steel
Member
Construction Society
China Powder Metallurgy Alliance Member
Magnetic Materials Branch of China Electronics
Member
Materials Industry Association
Third Prize for Mechanical
China Machinery Industry Federation,
Industry Science and
Chinese Mechanical Engineering Society European Powder Metallurgy Association Member
Technology
Alliance of China 3D Printing Technology Industry Member
Ganzhou city Ganshang Federation President
Ganzhou Emergency Management Association Director
Jiangxi Emergency Management Society Director
Best Supplier Award 2024
VISHAY
China Brand Promotion Association
Value Evaluation
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Sustainable
Development
Key ESG Issues in this Chapter
Stakeholder Communication
SDGs in this Chapter
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Sustainable Development Governance Board of Directors
As the decision-making body, the Board of Directors is responsible for
making decisions on major ESG-related matters and issues, and for
reviewing the Company's annual ESG Report.
YUEAN consistently embraces the philosophy of sustainable development and continuously refines its ESG
management system. It deeply integrates the three dimensions of environmental stewardship, social responsibility, and The Company's ESG Strategy Committee is responsible for researching and
corporate governance into its corporate strategy, institutional framework, and business operations. By improving formulating the Company's ESG strategy and policies, and for supervising,
ESG Strategic reviewing, evaluating, and providing recommendations on the Company's
governance mechanisms, strengthening market coordination, and promoting the implementation of responsibilities, the
Committee performance in environmental, social, and governance responsibilities. The
Company systematically advances green development, social responsibility, and compliance management, contributing ESG Strategy Committee reports to and is accountable to the Board of
to global sustainable development Targets. Directors.
Sustainable Development Mission and Vision The ESG Manager is responsible for formulating ESG strategic plans and
objectives, and for driving their implementation. Regarding external
ESG Manager
communications, the ESG Manager oversees the quality, consistency, and
continuity of the disclosed information.
Led by the ESG Manager, responsible for establishing the management
ESG External process for ESG information dissemination, publishing ESG-related
Experts and information on the official website and official WeChat public account, and
Alliances communicating and exchanging ESG information with external
ESG Vision ESG Mission ESG Core Values stakeholders.
Leading New Materials Becoming a Leader in New
Technology, Driving a Materials through Technological Adhering to the People-Centered Led by the ESG Manager, responsible for interpreting global ESG standards
Sustainable Future Innovation, Contributing to Principle, Pursuing Innovation and ESG Operation and updates, communicating and promoting ESG development content
Sustainable Development for Green Development to Achieve System internally, facilitating the implementation of the ESG system, identifying
Humanity Mutual Prosperity for the Enterprise risks and driving continuous improvement, and organizing the compilation
and Society of the ESG Report.
Sustainable Development Governance System
ESG Capacity Building
Based on its actual conditions, the Company has established a comprehensive ESG strategy system, forming an
organizational structure that enables decision-making, execution, and coordination, thereby providing solid
The Company places great emphasis on cultivating the professional ESG capabilities of all employees, integrating this
organizational support for the implementation of its ESG strategy. At the same time, the Company continuously
into its key systems for talent development and business improvement. Through organizing specialized training and
improves its ESG working mechanism and supervision procedures, regularly collects relevant information, and submits
other methods, it strengthens employees' theoretical foundation in ESG and enhances their practical skills. This
special reports to the Board of Directors, ensuring that ESG initiatives are carried out in a standardized and effective
professional talent reserve establishes a solid core foundation for the standardized and high-quality advancement of
manner.
the Company's ESG efforts.
ESG Management Structure
Board of Directors Case Study
Strategic Committee ESG Training
In July 2025, the Company organized employees to participate in the "Training Series for High-Quality
ESG Strategic Committee
Development of Listed Companies – Sustainable Development Report (ESG) Special Session (Phase 2, 2025)"
via the Pujiang University website. This training helped employees strengthen their professional
ESG Executive Manager knowledge base for ESG report compilation, enhanced their relevant practical skills, and built talent and
professional support for the standardized implementation of ESG work.
ESG External Experts and Alliances ESG System Management and Operations
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Stakeholder Communication Stakeholder Issues of Concern Communication channels
Government/Supervisory Environmental compliance management
Authorities Energy utilization Information disclosure
The Company places high importance on maintaining relationships with stakeholders and continuously improves its
Climate change response Regulatory assessment
information communication mechanisms. It maintains close interactions with employees, customers, suppliers, etc.,
Pollutant emissions Telephone and email
actively incorporates feedback and suggestions to optimize operational management, thereby enhancing its social
Waste disposal
responsibility image and strengthening its market competitiveness.
Stakeholder Issues of Concern Communication channels
staff
Protection of the employees' legal
rights benefits
Employee representative assembly
Trade union Management of Importance Issues
Telephone and email
Face-to-face communication
Occupational health and safety With reference to the evaluation methodologies of domestic and international disclosure standards
Employee satisfaction survey
such as the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (Trial),
Shareholder meeting the Company introduces the analytical perspectives of impact materiality and financial materiality to
SSE E-interactive identify and assess material issues.
Stakeholder communication Investor hotline
Shareholders/Investors Roadshows and reverse roadshows
Anti-commercial bribery and
anti-corruption Media coverage Issue Evaluation Process
Performance briefing session
Information disclosure
Issue Evaluation Process Analytical Methods
Analyze global trends, the future development of the Company's
Suppliers Supply chain security Business visits Company Background
industry, the Company's business model, and its current production
Anti-commercial bribery and anti-corruption Analysis
Telephone and email and operations to identify risks and opportunities.
In accordance with the Exchange's guidelines and with international
Product and service safety and quality Social media
Customer/Distributor standards such as GRI, SDGs, etc., the Company will build a wide-
Data security and customer privacy protection Customer satisfaction survey Issue Selection ranging and targeted sustainable development issue pool based on
Anti-unfair competition Telephone and email the above and the key issues in the field of sustainable development
in the same industry both at home and abroad.
Industry associations/scientific
research institutions Industry conferences Impact Significance Assessment
Innovation drive
Site visits Based on the actual production and management, the Company
analyzes the potential or actual positive and negative impacts of each
sustainable development issue on the external environment, society
Public Welfare Organization/ Charitable donations and the economy.
Community Organization Social contribution
Exchanges and visits Assessment of the
Rural revitalization Financial Significance Assessment
Media interview Importance of the Topic
Through the analysis of impact, dependency, internal stakeholder
surveys, and other factors, the Company, in conjunction with expert
Environmental compliance management judgment, as well as risk identification and assessment lists from
Energy utilization Media interview various departments, identifies and evaluates the risks and
Media Company website opportunities under relevant topics. This process allows for the
Climate change response
Pollutant emissions assessment of issues with financial significance.
Company Official WeChat
Waste disposal Account
Product and service safety and quality Recognition of the Importance Form the Company's Materiality Topic Matrix based on the analysis
of the Topic results.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Issue Evaluation Results Importance Issues
The company has conducted a dual-dimension assessment of sustainable development topics in terms of impact
materiality and financial materiality, and presented the analysis results and the priority ranking of each topic in matrix
form. Pollutant Emissions, Occupational Health and Safety, Supply
Double importance
Chain Security
Matrix of significant issues of YUEAN
greatly
important
Environmental Compliance Management
Energy Utilization
Water Resource Utilization Pollutant Emissions
social and environmental impacts
Climate Change Response, Innovation Drive, Product and Service
Protection of the Employees' Legal Rights Benefits Occupational Health and Safety
The importance of economic,
Only financial importance
Employee Training and Developmen Supply Chain Security Safety and Quality
Social Contributions
Rural Revitalization
Environmental Compliance Management, Energy Utilization,
Waste Disposal
Circular Economy Water Resource Utilization, Protection of the Employees'
Only impact importance
Data Security and Customer Privacy Protection Climate Change Response Legal Rights Benefits, Employee Training and Developmen,
Stakeholder Communication Innovation Drive Social Contributions, Rural Revitalization
Anti-Commercial Bribery And Anti-Corruption Product and Service Safety and Quality
Anti-Unfair Competition
Due Diligence
Waste Disposal, Circular Economy, Data Security and
Customer Privacy Protection, Stakeholder Communication,
Financial importance to the Company greatly important Related
Anti-Commercial Bribery And Anti-Corruption, Anti-Unfair
Competition,Due Diligence
Impact Material but Not Both Financially Material and Impact
Financially Material Material
Neither Financially Material Financially Material but Not Impact
Nor Impact Material Material
Note 1: The Company’s production and operation sites are not located in ecologically sensitive areas such as ecological protection red
lines. All projects have gone through the statutory environmental impact assessment procedures in accordance with laws and
regulations, and project implementation has not exerted significant impacts on the regional ecosystem and biodiversity. Therefore,
ecosystem and biodiversity protection has not been included in the Company’s material ESG topics.
Note 2: The Company is engaged in the R&D, production, and sales of micro-nano metal powder new materials and does not engage in
scientific research, technology development, or other activities in ethically sensitive fields such as life sciences or artificial intelligence.
Therefore, Technology Ethics is not included as a material ESG topic for the Company.
Note 3: The Company treats all cooperating suppliers equitably and effectively protects the legitimate rights and interests of small and
medium-sized suppliers. During the reporting period, the Company strictly complied with payment terms, and no instances of delayed
payments to small or medium-sized suppliers occurred. Therefore, Equal Treatment of Small and Medium-sized Enterprises is not
included as a material ESG topic for the Company.
Note 4: Considering industry practice and the Company's actual operations, Due Diligence has been added as a new topic. Although the
Company does not currently conduct ESG-specific due diligence, it continuously carries out supply chain due diligence (detailed in the
Responsible Supply Chain section).
Note 5：Environmental compliance management, pollutant emissions, and waste disposal are jointly disclosed in the Environmental
Compliance Management chapter.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Standardized
Operation for
Enhanced Governance
Key Achievements in 2025
One shareholders' meeting was convened, at which 17 proposals
were reviewed and approved
Board of Directors convened eight times, with 45 proposals
reviewed and approved
Key ESG Issues in this Chapter
Anti-Commercial Bribery And Anti-Corruption,
Anti-Unfair Competition
SDGs in this Chapter
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Standardized Governance 2025 Key Performance
Operation 8 Board meetings convened, with 45 proposals reviewed and approved.
YUEAN, in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and The Company's Board of Directors has established the following committees: the Strategy Committee, the Audit
other applicable laws and regulations, has formulated and continuously refined its Articles of Association, Rules of Procedure for Committee, the Technology Committee, and the Remuneration and Appraisal Committee. It has also formulated the
Shareholders' Meetings, Rules of Procedure for Board Meetings, and other relevant policies. It has established a scientific and Working Rules for the Strategy Committee, Working Rules for the Technology Committee, Working Rules for the
standardized governance structure, cultivated an efficient and collaborative operating mechanism, and consistently Remuneration and Appraisal Committee, and Working Rules for the Audit Committee. To ensure scientific, independent,
adhered to the principle of unifying standardized operations with effective checks and balances, thereby and impartial decision-making, each committee includes independent director positions as stipulated, allowing their
comprehensively enhancing the Company's overall governance effectiveness. professional supervisory role to be fully leveraged. Each special committee performs its duties efficiently and
collaboratively in accordance with the law, continuously enhancing the scientific rigor, foresight, and independence of the
Governance Structure of YUEAN Board's decisions, thereby effectively safeguarding the legitimate rights and interests of all shareholders.
Shareholders’ Meeting Independent Non-Independent Proportion of Independent Director
Committee Name Directors Directors
Independent
Directors as Convener
Board of Directors
Strategy Committee 1 persons 4 persons 1/5 No
Remuneration and Audit Committee 2 persons 1 persons 2/3 Yes
The Strategic The Audit The Technology
Assessment
Committee Committeethe Committee Technology
Committee
Committee 1 persons 2 persons 1/3 No
Remuneration and
Appraisal Committee
Shareholders' Meeting
The Company has formulated and implemented the Rules of Procedure for Shareholders' Meetings, further
standardizing the operational procedures of the Shareholders' Meeting. It effectively safeguards the rights of all
shareholders, particularly minority shareholders, to exercise their rights to information, participation, and voting in Strategy Committee convened once Technology Committee convened once
accordance with the law. Mechanisms for recusal from voting on related-party transactions and for separate vote Audit Committee convened six times Remuneration and Appraisal Committee convened five times
counting are strictly implemented, promoting scientific, institutionalized, and standardized decision-making at the
Shareholders' Meeting. Shareholders may participate and vote in meetings either in person or via online platforms. The
entire meeting process is witnessed by a professional third-party law firm engaged by the Company, which issues a
formal legal opinion to ensure the legality, compliance, openness, and transparency of the meeting's convening,
conduct, voting, and disclosure. Board Independence
The Company has established policies such as the Working System for Independent Directors and the Working Rules for
in accordance with the law. Independent directors participate in Board decisions independently and prudently,
fully leveraging their professional expertise to offer professional opinions and rational recommendations on
effectiveness of Board decisions and continuously strengthens the Company's governance capabilities.
As of the end of the Reporting Period, the Company had three independent directors.
Board of Directors Board Diversity
The Company actively promotes diversity in the composition of its Board, continuously optimizing the balanced
The Company has established and implemented its Rules of Procedure for Board Meetings to keep the Board's deliberation and representation of directors in terms of professional background, age structure, and gender composition. It persistently
decision-making processes standardized, supervise directors in fulfilling their duties diligently and in accordance with refines the director selection and performance evaluation system, striving to build a highly qualified Board team
the law, and ensure the Board's standardized and efficient operation. characterized by complementary expertise, a reasonable structure, and diverse experience, thereby effectively elevating
the Board's level of scientific decision-making and strategic leadership.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Board Diversity Composition
Compliant Operations
By gender（person） By function（person） By Age（person） By Education（person）
The Company consistently adheres to lawful and compliant operations and integrity-driven management, strictly
Company's operations and safeguarding the legitimate rights and interests of shareholders and relevant stakeholders.
Bachelor's Degree and
Male Female Independent Director 30-40years 41-50years Below Case Study
Non-independent Director 51-60years 61-70years Master's Degree
Doctoral degre Compliance Training
In 2025, the Company organized special compliance and legal training for its directors, senior executives,
and relevant personnel, focusing on systematic study of topics such as the "Interpretation of the CSRC's Series of
Management of Directors' and Senior New Regulation Amendments" and the "Interpretation of Director and Senior Executive Performance under the New Regulations."
This initiative further strengthened the legal compliance awareness of internal personnel, continuously
Executives' Remuneration consolidated the foundation of compliant operations, and fostered a standardized, orderly, law-abiding,
and responsible compliance culture.
The Company has formulated the Remuneration and Performance Appraisal Management System for Directors and Senior Executives,
establishing a robust incentive and restraint mechanism. It has developed a clear, scientifically sound remuneration
management system for directors and senior executives with well-defined responsibilities and authorities, ensuring that Risk Management and Internal Control
remuneration aligns with management performance and the Company's profitability, effectively stimulating operational The Company has formulated and refined its Risk Management and Internal Control System, further clarifying risk management
vitality and safeguarding the legitimate rights and interests of the Company and all shareholders. responsibilities and internal control requirements, integrating risk prevention and control into all aspects of its
operations and management. By enhancing mechanisms for risk identification, assessment, response, and monitoring,
standardizing business processes, and strengthening control over key nodes, it continuously improves the systematic
Director remuneration is reviewed by the Board's Remuneration and Assessment Committee and deliberated and effective nature of its risk management. This ensures the standardized and orderly conduct of the Company's
by the Board of Directors, and then determined by the Shareholders' Meeting; senior executive remuneration
business activities, effectively strengthens its risk resilience, and provides a solid guarantee for its stable operations
is reviewed by the Remuneration and Assessment Committee and then determined by the Board of
and high-quality development.
Directors.
For directors and senior executives holding specific positions in the Company, their remuneration consists of Case Study
base salary, performance bonus, etc., determined comprehensively based on job grade and performance
appraisal results, without additional director allowances. Internal Control Violation Case Study Training Session
Independent director remuneration is reasonably determined with reference to the average level of In 2025, the Company organized an internal control violation case study training session. The training
independent director remuneration in the capital market, and the Company pays monthly allowances to systematically covered topics such as an overview of violation scenarios, fraudulent activities in fund
independent directors. management, distortion of financial reports, and recommendations for corrective actions. It delved into the
During the Reporting Period, the Company paid a total of 337.66 10,000 RMB in remuneration to its directors analysis of typical violation cases from other listed companies, summarized lessons learned to address
and senior executives. shortcomings, and proposed targeted corrective measures based on the Company's actual situation,
thereby enhancing risk prevention and control capabilities and ensuring the Company's standardized and
stable operations.
Establishing Robust Risk Control Internal Audit
Measures The Company, in accordance with the Audit Law of the People's Republic of China and other applicable laws and
regulations, has established its Internal Audit Management System and built a standardized internal audit framework.
YUEAN consistently regards risk management as a cornerstone for stable operations and sustainable development. It The Audit Department coordinates internal audit activities, consistently adhering to routine audit oversight and precise
continuously improves its risk control system, refines its corporate governance mechanisms, and strengthens the risk identification to promptly detect and rectify management deficiencies and weak links, translating audit findings
management of key processes. This enables the precise identification, scientific assessment, effective response, and into improved governance effectiveness.
closed-loop management of various risks, comprehensively enhancing its level of compliant operations and risk During the Reporting Period, the Company conducted its annual audit and special audits of its subsidiaries, Ganzhou
resilience, thereby providing a solid guarantee for the Company's high-quality development. YueLong and Ningxia YUEAN, An audit report is issued based on the audit findings.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Tax Management Investor Relations Management
The Company strictly complies with the Law of the People's Republic of China on the Administration of Tax Collection, the Enterprise Income The Company has established its Investor Relations Management System. Adhering to the principles of "compliance,
Tax Law of the People's Republic of China, and other relevant laws and regulations. It upholds the principle of honest and lawful equality, proactiveness, honesty, and trustworthiness," it continuously improves its investor communication
tax payment, consciously fulfills its tax obligations, standardizes its tax management practices, and proactively mechanisms, establishing diversified and regular communication channels. It actively listens to investor concerns,
assumes social responsibilities, contributing to the maintenance of market order and the public interest through enhances the quality and efficiency of information exchange, effectively protects the legitimate rights and interests of
concrete actions. investors, and fosters harmonious and stable investor relations.
During the reporting period, the Company fulfilled its tax payment obligations in full in accordance with the law, and
Investor Communication Channels
paid a total of various taxes and fees of 4,911.43 ten thousand yuan.
Strengthening Investor Relations Company Website, New Media Platforms, Email, Shareholders' Meetings, Investor Briefings, Roadshows,
Performance Briefings, On-site Investor Surveys, Investor Hotline, SSE E-interaction
Management
YUEAN consistently adheres to standardized operations and transparent governance. It strictly fulfills its information
disclosure obligations, establishes efficient communication channels with investors, proactively communicates the 2025 Key Performance
Company's value, and effectively safeguards the legitimate rights and interests of minority shareholders. This fosters
market recognition and shareholder trust, builds consensus for development, and contributes to the Company's stable,
long-term growth and shared value creation. Number of investor engagement activities: 35 Investor questions answered SSE
On-site investor visits:
E-interaction: 168
Information Disclosure Total investor questions received SSE E-interaction: 168 Response rate SSE E-interaction: 100%
The Company has established its Information Disclosure Management System and Management System for
Information Disclosure Postponement and Exemption, further refining its information disclosure management
framework. It clarifies disclosure standards and operating procedures, strictly regulates key aspects such as
information collection, review, and submission, ensuring that information disclosed is true, accurate, complete, timely,
and fair. This effectively protects investors' right to information and upholds the Company's favorable image in the
capital market. Protection of Shareholders' Rights and Interests
During the Reporting Period, the Company did not receive any penalties for violations related to information disclosure.
The Company places high importance on protecting the legitimate rights and interests of shareholders. In profit
distribution, it adheres to the principles of fairness, impartiality, and transparency, implementing a consistent and
stable profit distribution policy and reasonably optimizing dividend payout methods to effectively enhance shareholder
right to earnings, and maintains the long-term interests of shareholders through a standardized and transparent
Number of periodic reports disclosed: 4 Number of interim reports and attachments disclosed: 133 distribution mechanism.
Key Indicator Unit 2025
Cash dividend per share RMB/Share 0.20
Public Sentiment Management Total cash payout (tax included) 10,000 RMB 2,876
The Company has established its Public Sentiment Management System. Guided by the overarching principle of
The proportion attributable to the
"scientific response, clear orientation, and emphasis on effectiveness," it closely monitors industry trends and public net profit of shareholders of % 34.72
opinion, accurately identifies potential public sentiment risks, and strengthens its capabilities in monitoring, early listed companies
warning, emergency response, and handling. This promotes the standardization, specialization, and normalization of
public sentiment management, creating a positive public opinion environment to support the Company's stable and Note: The 2025 profit distribution proposal is subject to review and approval by the company’s 2025 Annual General
sustained operations. Meeting of Shareholders before it can be implemented.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Adherence to Business Ethics Integrity Training
The Company regularly conducts specialized training on anti-commercial bribery, anti-corruption, and anti-fraud. It
educates all employees on relevant laws, regulations, and behavioral norms related to integrity, compliance, and
ethical conduct, reinforcing bottom-line awareness and a sense of responsibility, guiding employees to consciously
YUEAN consistently adheres to business ethics, strictly complies with relevant national laws, regulations, and industry resist various improper behaviors.
standards. It upholds fair competition and integrity-driven operations, consciously resists unfair competition and
commercial bribery, strengthens its awareness of integrity and professionalism, and maintains market order through Case Study
self-regulation and concrete actions, cultivating a corporate image of responsibility and integrity.
Integrity Education and Training
In 2025, the Company organized training on the Employee Handbook, which included content on
Anti-Commercial Bribery And Anti-Corruption integrity, ethics, and conduct standards. The training focused on explaining employee conduct rules,
clearly defining disciplinary red lines such as accepting bribes, soliciting bribes, embezzlement, theft, and
The Company has established the System for the Management of Anti-Bribery, Anti-Corruption, and Anti-Fraud, clearly misappropriation of funds. It also detailed the definitions and consequences of violations such as
fraudulent transactions, fraudulent fund withdrawals, and accepting kickbacks, guiding employees to
designating the Audit Committee as the leading body responsible for guidance and supervision, and the Audit
respect rules, uphold boundaries, and strengthen their sense of integrity and self-discipline.
Department as the standing body responsible for coordinating and executing the implementation of related work. By
strengthening the system framework and enhancing process control alongside supervisory accountability, the
Company is committed to cultivating a work ethic characterized by integrity, diligence, adherence to rules, and
dedication to duty, thereby solidifying its defenses for compliant operations. 2025 Key Performance
During the reporting period, the Company had no incidences of commercial bribery or corruption.
The number of participants in the anti-commercial bribery and anti-corruption training was 582
Organizational Structure
Total hours of anti-bribery and anti-corruption training provided
Urges management to foster a culture of integrity and compliance,
Board of Directors and to improve the internal control system. Average hours of anti-bribery and anti-corruption training per person 0.5 hours/person
Audit Committee
Serves as the leading body, responsible for guiding and supervising related
work.
Number of individuals signing integrity agreements or related commercial conduct documents 113
Management Establishes and implements internal control mechanisms, and ensures risk
prevention, control, and problem rectification.
Heads of Subsidiaries/ Act as the primary responsible persons for their respective units, bearing
Whistleblowing and Whistleblower Protection
Departments management accountability. The Company has established a robust whistleblowing mechanism, encouraging employees and the public to report
Acts as the standing executive body, specifically organizing and implementing any instances of commercial bribery, corruption, fraud, or other violations. Upon receiving a report, the Audit
Audit Department Department initiates an investigation process promptly, carrying out verification in accordance with laws and
Company-wide related work.
regulations.
Anti-Commercial Bribery and Anti-Corruption Objectives The Company protects whistleblowers in accordance with its rules, keeping whistleblower information and reporting
materials confidential. It provides rewards for verified reports. Anyone found to have leaked information or retaliated
No major corruption incidents during the reporting period Achieved against a whistleblower will be dealt with severely according to regulations; cases involving violations of law will be
transferred to judicial authorities. This ensures the protection of whistleblower rights and the effective functioning of
Key positions sign the Commitment Letter for Preventing Commercial Corruption Achieved the whistleblowing mechanism.
Whistleblowing channels
Anti-Commercial Bribery and Anti-Corruption Supervision
The Company has improved its supervision and prevention mechanisms against commercial bribery and corruption. It Tel: 0797-8705008
monitors key positions, key matters, and key links where power, capital, and resources are concentrated, effectively Email: audit@yueanmetal.com
preventing the risk of commercial corruption. During the reporting period, the Company organized relevant personnel in
key positions to sign the Commitment Letter for Preventing Commercial Corruption, reinforcing their responsibility for Address: Audit Department, JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD., Xinhua
clean and honest work, strengthening disciplinary constraints and behavioral norms, and ensuring the Company's Industrial Park, Dayu County, Ganzhou City, Jiangxi Province
compliant and stable operation.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Anti-Unfair Competition Party Branch
Party Branch Deputy Party Branch Organization Committee Propaganda Discipline Committee
Secretary Secretary Member Committee Member Member
The Company strictly adheres to laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China. It
upholds the principles of fair competition and honest management, resists all forms of unfair competition, and prohibits Carbon-based Business New Century Factory Atomization Business Magnetic Materials Production Security
Department Area Department Business Department Department
disrupting market order through improper means such as commercial defamation, infringement of trade secrets, or
illegal prize promotions, thereby maintaining a healthy order of fair competition within the industry. Person in charge Person in charge Person in charge Person in charge Person in charge
During the reporting period, the Company had no lawsuits or significant administrative penalties arising from unfair
competition. Department Party Factory Area Party Department Party Department Party Department Party
Members Members Members Members Members
Staff and Masses Staff and Masses Staff and Masses Staff and Masses Staff and Masses
Responsible Marketing YUEAN "1+N" Party Organization Structure
The Company adheres to the concept of responsible marketing, abiding by laws, regulations, and industry standards. It
avoids false advertising and effectively safeguards consumers' right to know. Simultaneously, it standardizes
advertising placements, channel promotions, and customer communication practices, maintaining a fair market order
and fostering a healthy and orderly business environment.
Number of Party Number of Party Branch Number of Party
During the reporting period, the Company had no violations related to laws or voluntary codes concerning product and
service information or labeling.
Branches 1 Meetings Held 12 times Members 28
Adhering to Party-Building
Strengthening Ideological Construction
Leadership
The Company's Party Branch closely follows the overall requirement of "learning theory, strengthening Party spirit,
YUEAN consistently adheres to the deep integration of Party-building leadership with production and operations, emphasizing practice, and making new contributions," aiming for the positioning of "Leadership with Integrity,
effectively translating the Party's political and organizational strengths into the Company's development momentum. Innovation for the Nation." It achieves full coverage of Party member learning through activities such as the "Three
The Company rigorously implements Party-building work, strengthens ideological-political development and Party Meetings and One Lecture" (regular branch committee meetings, branch general meetings, Party group meetings, and
member team building, actively conducts thematic practice activities, promotes a spirit of responsibility and pragmatic Party lectures) and thematic Party days. It also deepens education on the Party Constitution, rules, and discipline, using
action, and fully leverages the Party organization's role as a bulwark and the exemplary vanguard role of Party warning education and integrity talks to fortify the defense against corruption, fully leveraging the Party Branch's role
members, providing a solid guarantee for high-quality development. as a bulwark and the exemplary and vanguard role of Party members.
Case Study
Strengthening Organizational Construction
Branch Party Member General Meeting
The Company consistently upholds Party-building leadership, integrating Party leadership into all
aspects of corporate governance, and fully leveraging the Party organization's guiding, overarching, In 2025, the Company convened a Branch Party Member General
and guaranteeing role. It has established a "1+N" Party organization structure, with the Party Branch Meeting to thoroughly study and implement the Party's latest
as the core. Positions include Branch Secretary, Deputy Secretary, and Committee Members for theoretical spirit and the work arrangements of higher-level Party
Organization, Discipline, and Publicity, with clearly divided responsibilities for coordinating work committees. The meeting reviewed past Party-building achievements,
across business units and factory areas. This structure fully utilizes the Party members' role as a summarized experiences, and deployed key tasks for the year.
bridge for connecting with and serving employees, helping to understand employee thoughts and Structured to be progressive and targeted, the meeting further
work situations, and inspiring the exemplary and vanguard role of Party members. consolidated ideological consensus and reinforced a sense of
responsibility, laying a solid red foundation and gathering momentum
for the Company's high-quality development.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Low-Carbon
Leadership for
Green Development
Achievements in 2025
Total Environmental Investment: RMB 4,289,000
Environmental Training Hours: 1,440 hours
Total energy consumption6,075.54tonnes of standard coal
Total GHG Emissions:25,191.88tCO₂e
Key ESG Issues in this Chapter
Climate Change Response, Environmental Compliance Management,
Energy Utilization, Water Resource Utilization, Waste Disposal,
Pollutant Emissions, Circular Economy
SDGs in This Chapter
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Climate Change Response Case Study
Training on Introduction to Carbon Emission Accounting Methods
YUEAN actively responds to the national "dual carbon" strategy. Leveraging its industrial strengths, it deeply integrates
climate change response with its corporate development strategy. Through initiatives such as the application of high- In 2025, as part of a training series on high-quality development for listed companies, the Company
efficiency equipment and the continuous iteration and upgrade of production processes and technologies, it steadily conducted specialized training on Sustainability Reports (ESG). This included the course Introduction to
promotes green and low-carbon development, contributing corporate efforts to combating global climate change. Carbon Emission Accounting Methods, which helped employees learn and master the basic methods and
requirements of carbon emission accounting, enhancing their capabilities in ESG management and
information disclosure, and supporting the Company's standardized carbon management and continuous
sustainability efforts.
Governanc
Aligning with the national "dual carbon" strategy and upholding the principle of sustainable development, the
Company is committed to building a robust carbon management system. It deeply integrates climate governance into
its overall development strategy, translating low-carbon commitments into concrete actions and injecting green
momentum into its high-quality development. Strategy
E A T Risk
Type
Risk Description
Time
horizon
Value Chain
Segment
Potential
Financial Countermeasures
of impact Affected Impact
Organizational control and Gradual learning and Gradual establishment of
management of product understanding of carbon carbon emission performance 1. Regularly assess the
The Company's headquarters is located impact of climate change
design processes related to trading and regulatory evaluation system
in Ganzhou, which is subject to on business operations.
carbon emissions knowledge Establishment and seasonal severe convective weather,
Organization of carbon Participation in diversified improvement of carbon asset cold spells, and heavy rainfall during the
response plans and conduct
emission data accounting in carbon trading discussions and risk control rainy season. Such events may damage
Increase in drills to ensure rapid
procurement processes learning buildings and production facilities and Short Operations operating response during extreme
threaten personnel safety. -term
costs weather events.
Some subsidiaries are located in
Hainan, Guangzhou, and other areas
government agencies to
N S that may be affected by typhoon
seasons, potentially causing damage to
obtain policy support and
financial subsidies to
the Company's infrastructure.
Formation of carbon neutrality enhance disaster resilience.
targets and indicators Active research on carbon
Alignment with international creditworthiness evaluation 1. Regularly assess the
impact of climate change
and domestic trade rules based
on business operations.
on carbon footprint data
Certain regions are affected by high
response plans and conduct
temperatures and rising sea levels, Increase
Medium drills to ensure rapid
which increase energy consumption for in
Carbon Management System to Operations response during extreme
cooling while exacerbating safety operating
long term weather events.
hazards and the risk of damage to costs
operational facilities. 3. Cooperate with
The Company regularly organizes employees to participate in internal and external specialized training on carbon asset government agencies to
obtain policy support and
management, covering core topics such as carbon trading mechanisms, carbon footprint accounting, and climate risk
financial subsidies to
management. By continuously strengthening professional knowledge and practical skills, it enhances the team's carbon
enhance disaster resilience.
management capabilities, providing strong talent support for the Company's scientifically driven climate governance
and the development of a green, low-carbon system.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Time Value Chain Potential Oppo- Time Value Potential
Risk Opportunity Chain
Risk Description horizon Segment Financial Countermeasures rtunity horizon of Financial Countermeasures
Type Description Segment
of impact Affected Impact Type impact Impact
Affected
Actively respond to the national Leverage its advantages in
"carbon peak and carbon green production to actively
The State may introduce neutrality goals" policy by explore markets in emerging
corresponding environmental implementing a carbon neutrality As global concern over climate sectors such as new energy,
regulations requiring companies to Increase action plan, ensuring business change increases, demand for energy conservation, and
Short,
reduce carbon emissions or Operations in
Medium to operations comply with policy micro-nano metal powder Increase environmental protection. For
operating Market Medium Operations
improve resource efficiency. The Long-term requirements and mitigating materials is growing in emerging in example, provide high-
costs Oppor- to Downs-
Company may face greater pressure compliance risks arising from industries. The Company can operating performance metal powder
tunities long term tream
to reduce carbon emissions and policy adjustments. leverage these emerging market income materials to industries like new
incur higher carbon compliance opportunities to expand its market energy vehicles and
costs. share. photovoltaics, seizing
opportunities arising from the
Climate change may affect development of emerging
downstream industry demand, Adjust market strategies to meet industries.
Decrease in
such as fluctuations in new energy, Medium to consumer demand for
down-stream operating
electronics, and other sectors, long term
income sustainable products.
thereby impacting the Company's
performance.
Impact, Risk and
Oppo-
Opportunity
Time Value
Chain
Potential Opportunity Management
rtunity horizon of Financial Countermeasures
Description Segment
Type impact Impact
Affected
To proactively address the risks and opportunities arising from climate change, the Company continuously improves its
The government may introduce processes for identifying, assessing, monitoring, and managing climate-related risks. It integrates climate risk
industrial policies to support low- management into daily operations and decision-making, enhancing overall response capacity and ensuring stable,
carbon development in the micro- Short
Policy Reduced Actively respond to national sustainable development.
nano metal powder materials to policies and secure additional
Oppor- Operations operating
industry. The Company can Medium resources and technical support.
tunities proactively seek such policy costs
term
support to reduce costs and
Management Process
enhance profitability.
The Company can increase 1. Continuously optimize The Company, together with third-party experts, identifies climate-related risks and
investment in R&D for low-carbon production processes, improve Identification opportunities based on national laws, regulations, policy requirements, sustainability trends,
technologies, developing more manufacturing techniques for
efficient and energy-saving and its own operational realities.
products such as carbonyl iron
production processes for micro-nano powder and atomized alloy
metal powder materials. This will powder, enhance production
improve resource efficiency, reduce
For identified risks and opportunities, the Company assesses and analyzes their potential
efficiency and product quality, Assessment
carbon emissions, meet principal financial impacts, as well as their time horizon and magnitude.
meet market demand for high-
Techno- environmental requirements, and performance, green products,
Increase
logical enhance core competitiveness. Medium to and expand market share.
In addressing climate change, the Operations in operating The Company regularly conducts self-assessments of its climate-related risk and opportunity
Oppor- long term Supervision
Company will have increased income 2. Actively collaborate with management, promptly identifying and improving risk deficiencies.
tunities
opportunities to collaborate with universities to jointly explore more
universities and research institutions environmentally friendly and
on industry-university-research efficient production technologies Based on identification and assessment results, the Company develops corresponding mitigation
and material application Counterm-
projects, jointly tackling low-carbon easures
solutions, grasp industry measures, establishing a closed-loop management mechanism for climate change risks.
technology challenges and
accelerating technological technology trends, develop more
innovation and the competitive products, and create
commercialization of results. new market opportunities.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Energy Saving and Emission Reduction Measures
Indicators and Targets
Based on its operational characteristics and industry development requirements, the Company has established During the reporting period, externally purchased photovoltaic power generation amounted to 1.7796 million
scientific targets related to climate change response. It actively promotes a green and low-carbon transition, kWh, indirectly reducing carbon dioxide equivalent emissions by approximately 940 tons.
strengthening climate governance and energy conservation and emission reduction efforts.
Added 100 solar streetlights within the plant area, saving 87,600 kWh of electricity compared to traditional
streetlights and reducing CO₂e emissions by approximately 46 tonnes.
Climate Change Response Management Target
Phased out diesel boilers and replaced them with electric heating boilers, reducing diesel consumption by
Reduce carbon emission intensity by 30% by 2030 compared to the 2023 baseline year. fire truck, reducing diesel consumption by 1.88 tonnes; equipped shuttle buses to transport employees to
and from work in relevant areas, reducing gasoline consumption by approximately 1,285 liters. These
measures collectively reduced CO₂e emissions by approximately 30 tonnes.
Planted extensive trees within the plant area to purify the air.
Indicator Unit 2025
Direct GHG Emissions (Scope 1) tCO₂e 82.54
Indirect GHG Emissions (Scope 2) tCO₂e 25,109.34
Total GHG Emissions tCO₂e 25,191.88 Green, Low-Carbon,and Circular Utilization
GHG Emission Intensity tCO₂e / RMB 10,000 revenue 0.58
Green Processes and Technologies
Note 1: The statistical scope covers YUEAN. The Company is driven by green technology, continuously deepening process innovation and technological iteration.
Through the synergistic application of multiple green and low-carbon technologies, it persistently enhances its cleaner
Note 2: Scope 1 mainly covers greenhouse gas emissions from fossil fuels such as gasoline and diesel. The calculation
production levels and resource efficiency, solidifying its core competitiveness for sustainable development.
method refers to the Guidelines for Greenhouse Gas Emission Accounting and Reporting for Industrial Enterprises (Trial).
Note 3: Scope 2 mainly covers greenhouse gas emissions from purchased electricity and steam. The calculation
method for purchased electricity refers to the Announcement on the Release of 2023 Carbon Dioxide Emission Factors
Case Study
for Electricity issued by the Ministry of Ecology and Environment and the National Bureau of Statistics. The emission
factor for steam refers to the Guidelines for Greenhouse Gas Emission Accounting and Reporting for Industrial
Enterprises (Trial). Improved Carbonyl Iron Powder Production Technology
Note 4: The data in this table are self-calculated by the company based on the above methods and have not been
Ningxia YUEAN's improved carbonyl iron powder production process represents a pioneering technological
verified by a third-party institution.
breakthrough in the industry. This process uses low-grade ilmenite as a raw material instead of high-
purity sponge iron. Through a carbonylation reaction, carbon monoxide selectively binds with the iron
element, generating liquid iron pentacarbonyl, thereby achieving efficient separation of iron and titanium.
GHG Emissions Management The process simultaneously produces carbonyl iron powder and synthetic rutile, with the carbon
monoxide reaction medium being recyclable. This process not only enables the green and efficient
comprehensive utilization of ilmenite resources but also significantly reduces overall production costs
The Company's GHG emissions primarily arise from the consumption of electricity, coke, and other resources during
through the substitution of low-purity raw materials and the value addition of by-products, demonstrating
daily production activities. During the Reporting Period, the Company adhered to the principle of synergistic
both environmental and economic benefits.
development of economic and environmental benefits, comprehensively promoting internal cost reduction, efficiency
improvement, and a green and low-carbon transition. By optimizing process flows, improving raw material and
equipment utilization, and increasing product yield, the Company effectively reduced electricity consumption and
indirectly lowered GHG emissions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Circular Utilization
Environmental Compliance
Management
The Company procures industrial waste and recycled materials externally, relying on its proprietary core technologies
to achieve high-value resource utilization. By adopting a core pathway of recycling and reusing recovered materials, it
has built a stable and sustainable circular economy model that effectively reduces raw material costs while
continuously broadening green and low-carbon growth space.
YUEAN strictly complies with the Environmental Protection Law of the People's Republic of China, the Water Pollution
Prevention and Control Law of the People's Republic of China, the Atmospheric Pollution Prevention and Control Law
of the People's Republic of China, the Solid Waste Pollution Prevention and Control Law of the People's Republic of
Case Study China, and other relevant legal requirements. It actively implements the green development philosophy that "lucid
waters and lush mountains are invaluable assets," establishing a comprehensive, multi-tiered, and normalized
environmental compliance management system that integrates compliance requirements into every detail of its
Preparation of High-Purity Carbonyl Iron Powder through Recycling production and operations.
During the Reporting Period, the Company had no environmental violations.
The Company utilizes a unique technical process route involving carbonylation to process rare earth iron
slag. It recycles this slag to prepare high-purity carbonyl iron powder, significantly reducing production
costs while the rare earth tailings, enriched in iron, retain recoverable value. This technical route
represents a pioneering, groundbreaking, and transformative innovation by the Company, establishing a Governance
dual-driven model of "cost reduction + value addition." Following future industrialization, it is expected to
open new business growth points for the Company. Adhering to the environmental policy of "comply with laws and regulations, save energy and reduce consumption;
prevent pollution with full participation; reduce resource consumption, continuously improve," the Company has
formulated multiple environmental management procedures, including the Environmental Management Manual and
the Environmental Management System. It has established an environmental management organizational structure
with the General Manager as the ultimate responsible person, defining the supervision and guidance responsibilities of
Green Products the Safety and Environment Department to ensure the efficient operation and continuous optimization of the system.
Furthermore, it implements an environmental protection target responsibility system, incorporating environmental
The Company continuously builds a green product system, leveraging recycled material regeneration and green performance into assessments to drive effective implementation of environmental work, rigorously controlling pollutant
process innovation to create low-carbon, environmentally friendly products. Five of the Company's products, including emissions such as wastewater, exhaust gas, solid waste, and noise, and continuously improving environmental
body, confirming that their recycled material content exceeds 80%.
The Company has established an environmental management system in accordance with ISO 14001:2015 and has
obtained certification.
Product Green/Environmental Features
Responsibilities of the Safety and Environment Department
Using recycled scrap steel as raw material,
some products have a recycled content Drafting and revising environmental management system documents.
Products made exceeding 80% and have received Assisting the Management Representative in establishing, implementing, and maintaining the
from recycled materials certification from internationally recognized environmental management system and conducting related environmental activities.
(Atomized Alloy bodies. Compared to using virgin ores, this
Determining environmental objectives, targets, and programs.
Powder Series) significantly reduces energy consumption,
carbon emissions, and waste slag and gas Implementing the environmental management system within the department.
emissions. Recycling System Identifying and evaluating environmental aspects and significant environmental aspects within the
Certification department.
Complying with identified environmental laws, regulations, and other requirements.
Green products using Utilizing the industry-first improved carbonyl iron powder process, using Formulating and supervising measures to conserve energy and resources.
new processes ilmenite as raw material to achieve efficient separation and
(Carbonyl Iron Powder comprehensive utilization of titanium and iron resources. Carbon Selecting hazardous waste treatment vendors, overseeing the classification and off-site disposal of all
and Synthetic Rutile) plant waste, and liaising with qualified recycling companies for the recovery and disposal of all plant
monoxide is recyclable, making the process greener and more efficient. waste.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Cleaner Production
The Company vigorously promotes cleaner production, strictly selects clean energy and environmentally friendly raw
materials, and continuously optimizes production processes and management procedures to reduce environmental
impact at the source. Recognized for its solid green management achievements, the Company has been successfully
rated as a provincial-level "Green Factory," contributing to high-quality sustainable development and ecological
civilization construction through concrete actions.
Time Value Chain Potential
Risk
Risk Description horizon Segment Financial Countermeasures
Type
of impact Affected Impact
Environmental Management System Certification 1. Ensure all departments
Increased regulatory scrutiny from operate strictly in accordance
relevant supervisory authorities. If the with Company policies and
Company fails to implement standards national laws and regulations.
The Company regularly organizes internal environmental protection training sessions to strengthen environmental
properly, it faces penalties. For 2. Enhance safety supervision
awareness and responsibility among all employees, guiding them to actively participate in environmental protection
example, government requirements for by the Safety and
actions. Simultaneously, it proactively nominates personnel to participate in external professional training organized by environmentally friendly production
Policy Increase in Environment Department.
ecological environment departments, continuously enhancing environmental management and practical operational mean that exceeding discharge limits
Comp- Medium non- 3. Strictly control production in
capabilities. for wastewater or exhaust gas could Operations
liance term operating the carbonyl iron workshop to
Risk lead to production suspension.
expenses ensure no wastewater is
discharged externally.
Case Study 4. The Safety and Environment
Failure to properly dispose of Department conducts daily
hazardous waste in accordance with inspections, promptly reporting
Solid Waste Reporting Operation Training laws, regulations, environmental impact and eliminating any identified
assessments, and approval safety hazards.
In 2025, responding to environmental protection requirements, the Company participated in specialized
requirements.
system reporting training organized by the Environmental Protection Bureau, focusing on solid waste
classification and system reporting operations. Through systematic training, the Company further 1. Establish a sound
improved the standardization and accuracy of its solid waste management and reporting, effectively environmental management
preventing risks such as classification errors, omissions, misreporting, and improper disposal at the source, system, refine environmental
thereby strengthening the ecological and environmental safety defense line and supporting the management policies,
Company's green, low-carbon, and sustainable development. emergency response plans for
environmental management,
and hazard identification and
To meet pollutant emission
management systems,
requirements, the Company must
Increase ensuring these policies are
continuously invest capital and
Operations
in scientifically sound and
risk term operating operationally feasible.
operation, and maintenance of
pollution control facilities. This costs 2. Regularly organize
Number of environmental training sessions: 12 increases production costs and environmental training and
conduct drills for
compresses profit margins.
Number of environmental training participants: 720 environmental management
emergency response plans.
Total hours of environmental training: 1,440 hours 3. Ensure safe disposal of
hazardous waste in strict
accordance with laws and
Note: The statistical scope covers YUEAN. regulations.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Oppo-
rtunity
Opportunity
Time
horizon of
Value
Chain
Potential
Financial Countermeasures
Hazard Identification
Description Segment
Type impact Impact
Affected
The Company has formed a dedicated task force composed of responsible persons from relevant departments to
management, optimize operation process. A problem log is established, clarifying responsibilities and deadlines for rectification, ensuring early
By implementing cleaner production processes, detection, timely handling, and effective closure of hazards, continuously improving the Company's standardized
production, optimizing implement the 3R (Reduce, environmental management level.
production processes, and Reuse, Recycle) strategy, and
adopting circular utilization improve resource efficiency.
technologies, the Company 2. Expand the scope of Case Study
can reduce raw material wastewater recycling,
consumption and pollutant enhance the comprehensive
generation, lowering raw
Hazard Identification
utilization rate of solid waste,
Cost material procurement costs In February 2025, during a workshop safety hazard inspection, the Company identified issues including the
and achieve resourceful and
Optimi- and pollution control costs. Upstream Reduced
long-term high-value utilization of waste. lack of a detailed fire equipment ledger at the micro fire station, aging safety signs in the cooling water
zation Operations operating
Oppor- Simultaneously, investments costs area, and non-compliant climbing ladders for confined space operations. The Company immediately
in efficient environmental 3. Introduce efficient, energy-
tunities implemented corrective actions: improving the fire equipment ledger management, replacing aging safety
protection facilities can saving, and environmentally
signs, and providing compliant climbing ladders, thereby comprehensively eliminating safety hazards and
reduce energy consumption, friendly equipment, optimize
strengthening the workshop's work safety defenses.
further optimizing operating the energy structure, and
costs. Furthermore, resource reduce energy consumption.
recycling can achieve high- 4. Establish a cost monitoring
value utilization of waste, system, track changes in
generating additional environment-related costs, Emergency Response Plans and Drills
revenue. continuously optimize cost
control measures, and In strict compliance with relevant legal and regulatory requirements, the
enhance profitability. Company has developed the Emergency Response Plan for Environmental
Emergencies to ensure standardized and orderly safety and
environmental management. Furthermore, through regular professional
training and practical emergency drills, it continuously improves the
efficiency of its emergency response to environmental incidents and the
Impact, Risk and Opportunity Management emergency response capabilities of its employees, effectively preventing
and mitigating various environmental safety risks and building a safety On November 12, 2025, the Company
The Company is committed to establishing a sound risk and opportunity management mechanism, accurately organized an environmental emergency
barrier for the Company's stable and sustained development. drill, effectively enhancing the emergency
identifying and assessing various potential risks, and comprehensively reviewing the environmental impacts of its response capabilities and risk prevention
operational activities to ensure stable operations and sustainable development. and control level of relevant personnel.
Management Process
Risk Use methods such as document review to establish a risk identification checklist and conduct
identification hazard inspections in areas with potential risks.
Risk Assess and prioritize risks based on their magnitude of impact, extent, and probability of
Number of environmental emergency drills conducted: 3
Assessment occurrence.
Risk Monitor pollutant emissions, publicly disclose environmental monitoring results in a timely
Note: The statistical scope covers YUEAN.
monitoring manner, and accept regulatory review and public supervision.
Implement differentiated management for pollutants and waste based on type, hazard level,
Risk
Management and risk level. Improve resource recovery rates and develop relevant emergency response plans
to reduce the ecological and environmental impact of pollutants and waste.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Environmental Monitoring Indicator Unit 2025
In strict compliance with the National Key Monitoring Enterprise Self-Monitoring and Information Disclosure Measures, Total Environmental Investment 10,000 RMB 428.90
the Company uses an online monitoring system for real-time data collection. Monitoring data is simultaneously
uploaded to the Ganzhou Pollution Source Enterprise Portal, the Jiangxi Provincial Environmental Protection Platform, Environmental Protection Tax Paid 10,000 RMB 1.56
and the Automatic Monitoring and Basic Database System for Key Pollutant Discharge Units, and is publicly disclosed.
Number of major administrative penalties
Additionally, the Company engages qualified third-party institutions to conduct regular testing. All pollutant emission
from ecological and environmental authorities due to Incidents 0
indicators comply with relevant national and local environmental standards.
environmental incidents
Amount of major administrative penalties
Environmental Impact Assessment from ecological and environmental authorities due to
environmental incidents
The Company strictly complies with the Environmental Impact Assessment Law of the People's Republic of China and Note: The statistical scope covers YUEAN.
has established and implemented the Management System for the "Three Simultaneities" of Construction Projects.
During the project feasibility study phase, it engages qualified professional institutions to conduct environmental
impact assessments. The environmental impact assessment documents are submitted for approval to the competent
ecological and environmental authority with approval jurisdiction. Projects are advanced in accordance with laws and
regulations following approval, ensuring full-cycle compliance management.
Wastewater Management
The primary pollutants in the Company's wastewater are COD and ammonia nitrogen. In strict accordance with the
Environmental Management System, the Company manages wastewater treatment and discharge. The wastewater
discharge outlet is connected to the grid of the industrial park's wastewater treatment plant. A professional online
Indicators and Targets monitoring station has been established, equipped with advanced monitoring equipment connected to the
environmental protection platform, enabling real-time data upload for transparency and traceability. Additionally, the
Based on its production and operation realities, the Company has established and clearly defined environmental Company engages qualified third parties to regularly maintain monitoring equipment, collect samples, and conduct
management targets. It implements whole-process control over key environmental elements such as wastewater, data comparisons, ensuring the accuracy and reliability of monitoring data, with relevant results simultaneously
exhaust gas, and waste, ensuring stable compliance of all pollutant discharges, promoting efficient resource utilization, uploaded online.
and effectively preventing and controlling environmental risks.
Wastewater Treatment Management
Environmental Management Target Status
The Company has built one industrial wastewater treatment facility with a treatment capacity of 800 tonnes/day,
Wastewater Management Target
supported by a newly constructed 1,932 m³ wastewater treatment tank, which operates in conjunction with an
Compliant discharge of production wastewater existing 2,000 m³ wastewater treatment tank. Production wastewater first undergoes complexation extraction in the
equalization tank of the wastewater treatment station to remove volatile phenols, followed by chemical flocculation
Exhaust Gas Management Target
sedimentation. After treatment, the majority is recycled back into production processes, while a small portion of
Compliant discharge of production exhaust gas compliant wastewater is discharged into the industrial park's wastewater treatment plant in accordance with the
Waste Management Target Discharge Standard of Pollutants for Ferroalloy Industry (GB 28666-2012). Office and domestic wastewater, after
treatment in sedimentation tanks to meet standards, is discharged into the municipal sewage network, ensuring
environmental compliance.
Other Environmental Management Targets During the Reporting Period, the wastewater treatment facilities operated continuously and stably. Wastewater testing
Zero potential fires was conducted as required, with test reports issued. All pollutant discharges met standard requirements, achieving
Zero chemical spills stable compliance.
Compliant noise discharge
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Wastewater Recycling Exhaust Gas Management
Strictly adhering to the principles of "rainwater and wastewater separation, clean water and wastewater separation," The Company's industrial exhaust gas primarily originates from melting exhaust gas, vacuum pump exhaust gas,
the Company continuously strengthens the inspection and maintenance of wastewater treatment facilities. It has atomization dust, and screening dust generated during production.
established a comprehensive separation system, consisting of four modules: production wastewater drainage system,
The Company strictly manages exhaust gas in accordance with the Environmental Management System. Exhaust gas
domestic wastewater drainage system, rainwater and clean water system, and emergency drainage system. This
emissions comply with the Integrated Emission Standard of Air Pollutants (GB 16297-1996), and are monitored to
system comprehensively covers key aspects of water supply, drainage, and wastewater treatment, enabling effective
ensure control throughout the emission process. During the Reporting Period, the Company conducted exhaust gas
recovery and recycling of production water within the plant.
testing as required and issued corresponding test reports, continuously strengthening exhaust gas treatment and
compliance control.
Wastewater recycling process
Water Supply
Storm Water and
Exhaust Gas Treatment Management
Clean Drainage
For exhaust gas treatment, the Company has implemented several targeted control measures. A dust collection system is
Production Sewage installed above the melting furnace, achieving 90% efficient fume collection through slightly negative pressure
Drainage operation. Dust is transported via pipelines to bag filter TA001 for further treatment. This equipment has an airflow
rate of 4,000 m³/hour and a dust removal efficiency of 99%.
Tail Gas Scrubbing
Wastewater During the Reporting Period, all exhaust gas treatment facilities operated normally, and all exhaust gas pollutants were
stably discharged in compliance with standards.
Drainage Floor Washing
Production
Water
Waste gas treatment methods
Circulating Water Wastewater
Station Blowdown Treatment
Organised exhaust emissions
Industrial Sewage Treated compliant exhaust gas is discharged through a 20-meter-high, 0.3-meter-diameter stack (H1).
Drainage
Emergency Unorganized exhaust gas emissions
Drainage
Uncollected exhaust gas is emitted fugitively. Due to the high specific gravity of metal dust,
Domestic Sewage approximately 60% of fugitive dust naturally settles within the workshop. The annual emission of
Drainage remaining fugitive exhaust gas is 0.08 tonnes (0.011 kg/hour).
Indicator Unit 2025
Waste Management
Wastewater Discharge Volume tonnes 244,469
The Company classifies waste into non-hazardous solid waste and hazardous waste based on its properties. Non-
Tonnes / RMB 10,000 5.59 hazardous solid waste mainly includes iron oxide slag generated during production and dewatered sludge from the
Wastewater discharge intensity revenue wastewater pretreatment station. Hazardous waste mainly consists of waste organic solvents.
Chemical oxygen demand (COD) tonnes 9.983 The Company has established scientifically rigorous procedures, including the Waste Management Control Procedure
and the Chemicals Management Procedure. It strictly adheres to the principles of reduction, resource utilization, and
Ammonia nitrogen (NH3-N) tonnes 0.8056 harmlessness, prioritizing the comprehensive utilization of solid waste. All types of solid and hazardous waste are
stored separately and managed in a standardized manner, achieving whole-process environmental compliance control.
PH 6-9
Note: The statistical scope covers YUEAN.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Waste Treatment Methods
Green Office
Non-hazardous waste disposal The Company actively promotes the concept of a green office, having established the Office Energy Conservation and
Utilizes the 3R (Reduce, Reuse, Recycle) strategy. Reusable waste is recovered and recycled. Packaging Emission Reduction Management System. It refines management requirements regarding electricity and water
materials from production workshops and coke slag from production equipment are sold, with no conservation, paper recycling, green commuting, and waste sorting. It strengthens energy conservation awareness and
separate storage area required. Residue from production equipment is reprocessed through reduction accountability among all employees, continuously optimizes office energy management, and fosters a low-carbon,
and then recycled. environmentally friendly, civilized, and efficient office environment.
Hazardous waste disposal
The Hazardous Waste Transfer Manifest and Hazardous Waste Management Plan have been Green Office Initiatives
established. Transfer processes are standardized, and management strictly complies with national laws
and regulations. Electricity Conservation
Maximize use of natural light for office lighting, reduce unnecessary light fixtures. Implement zoned
controls to reduce lighting electricity usage.
Indicator Unit 2025
Control air conditioner usage hours; close doors and windows when using air conditioning. Turn off air
conditioning 30 minutes before leaving work to avoid wasteful operation.
Total Waste Generated tonnes 3,624.64
Of which: Hazardous wastes tonnes 44.17 Water Conservation
Of which: Non-hazardous waste tonnes 3,580.47 Strengthen routine maintenance of water-using equipment to eliminate leaks, drips, and seepage.
Cultivate water-saving habits, promptly turn off faucets.
Waste disposal volume tonnes 3,624.64
Of which: Hazardous wastes tonnes 44.17 Office Supplies Conservation
Of which: Non-hazardous waste tonnes 3,580.47 Prioritize procurement of energy-efficient, environmentally friendly office supplies.
Promote paperless office; print and copy documents double-sided whenever possible.
Waste generation intensity Tonnes / RMB 10,000 revenue 0.08
Establish collection bins for used office supplies to facilitate resource reuse.
Of which: Hazardous wastes Tonnes / RMB 10,000 revenue 0.001
Of which: Non-hazardous waste Tonnes / RMB 10,000 revenue 0.08 Energy Conservation
Phase out diesel boilers and replace with electric heating boilers.
Waste compliance disposal rate % 100
Provide shuttle buses to transport employees to and from work in relevant areas, reducing gasoline
Of which: Hazardous wastes % 100 usage.
Of which: Non-hazardous waste % 100 Encourage employees to switch to new energy vehicles and motorcycles to reduce carbon emissions.
Note: The statistical scope covers YUEAN.
Noise Management
In strict accordance with the Environmental Management System, the Company actively carries out comprehensive
noise management. Targeting major noise sources such as mechanical noise and aerodynamic noise, it effectively
reduces the impact of noise on the surrounding environment by optimizing equipment layout, adjusting process
parameters, selecting low-noise equipment, and installing noise reduction facilities such as soundproof rooms and
soundproof walls. During the Reporting Period, the Company engaged a third-party testing institution to conduct noise
testing and obtained test reports. All test results met the latest emission standards.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Resource recycling Case Study
Optimized Electricity Dispatch for Energy Saving and Efficiency
YUEAN strictly complies with the Energy Conservation Law of the People's Republic of China, the Water Law of the
People's Republic of China, and other relevant laws and regulations, adhering to green, low-carbon, and efficient Improvement
resource utilization. The Company strengthens whole-process management of energy and water, promotes energy
Through a special assessment of electricity load, the Company
conservation, consumption reduction, and water recycling, and actively develops a circular economy. Through formulated the Peak-Valley Electricity Usage Management Measure. It
compliance management and technological innovation, it achieves cost reduction, efficiency improvement, and green, optimized production scheduling, shifting high-consumption processes
sustainable development. such as compressors and melting furnaces from peak grid hours to
off-peak hours. Real-time monitoring and assessment of workshop
electricity usage were strengthened. The project achieved a 2.29
Energy Utilization Management million kWh increase in valley electricity usage, a 3.39 million kWh
reduction in peak electricity usage, a total electricity consumption
reduction of 1.50 million kWh, and a 14.1% decrease in electricity
The Company has formulated policies including the Energy Management System, the Energy Statistics Management consumption per unit of product.
System, and the Regulations on the Management of Energy Measurement Data Collection and Analysis, establishing
an efficient, clean, and sustainable energy utilization system. An Energy Conservation Management Leading Group has
been established, with the General Manager serving as the group leader and responsible persons from each
department and workshop as members. The Production Support Department serves as the lead functional department Case Study
responsible for policy implementation, data collection, and other tasks, ensuring the orderly conduct of energy
management work and improving the Company's energy efficiency and green development level. During the
“Waste Heat Recovery from Liquid Ammonia Vaporizer" Recycling Project
Reporting Period, the Company obtained ISO 50001 Energy Management System certification.
To address the issue of low vaporization efficiency and high energy consumption of liquid ammonia
Energy Management Targets cylinders due to low winter temperatures, the Company implemented an innovative waste heat recovery
retrofit. By laying dedicated pipelines, low-temperature waste heat from the cooling water circulation
system of other workshops was introduced into the liquid ammonia storage and vaporization area to
Reduce energy consumption intensity by 30% by 2030-compared to the 2023 baseline year. gently heat the cylinders, effectively improving vaporization efficiency.
Following implementation, the liquid ammonia vaporization rate increased by 10%–15%, effectively ensuring
stable winter production. This completely replaced the original steam heating method, saving
approximately 393 tonnes of steam annually.
Case Study
Comprehensive LED Energy-Saving Retrofit of Plant Lighting System
To accelerate the construction of a green plant, the Company undertook
a comprehensive upgrade of lighting in office areas, production
workshops, warehouses, plant roads, and public areas. High-energy-
Energy Management System Certification consuming traditional lamps, such as high-pressure mercury lamps and
metal halide lamps, were replaced in batches with high-efficiency LED
energy-saving lamps, which offer long life, high luminous efficacy, and
no flicker.
Energy saving initiatives This retrofit replaced a total of over 300 LED lamps. After the retrofit,
the total power load of the lighting system decreased by 30%. Based on
an average of 12 hours of lighting per day and 300 operating days per
The Company's production and operations primarily consume electricity and coke. The Company has adopted multiple
year, this is estimated to save approximately 17,124 kWh of electricity
measures to promote energy conservation and carbon reduction, focusing on electricity management, circular annually.
utilization, and technological transformation, significantly improving energy efficiency and achieving synergistic
economic, environmental, and social benefits.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Clean Energy Use Water Resources Utilization Management
The Company actively promotes energy substitution and green energy construction, continuously improving the The Company's production water is primarily used for cooling water circulation, with a small amount supplemented by
construction and operational management of rooftop photovoltaic facilities. In 2025, the Company's photovoltaic municipal water supply.
power generation usage and proportion steadily increased compared to 2024, further optimizing the energy structure, To implement national water conservation laws, regulations, and policies, and respond to the sustainable development
reducing dependence on purchased electricity, and effectively increasing the proportion of green energy consumption. strategy, the Company follows the principles of "unified management, quota control, circular utilization, and continuous
As of the end of the Reporting Period, the Company had a total of 9 new energy vehicles, replacing traditional fuel improvement." It standardizes production water planning, usage, measurement, assessment, and recycling, improving
vehicles with clean energy vehicles to support the Company's green and low-carbon development. water resource efficiency and reducing costs and environmental burden.
The Company has established a water conservation management mechanism led by the Production Planning
Energy Type Unit 2025 Department and coordinated by the Production Support Department. This mechanism is responsible for defining water
conservation targets, approving water-saving technology modification projects, and conducting whole-process
Total purchased electricity kWh 49,102,130 supervision of implementation. Water consumption quotas are incorporated into the monthly KPI assessment of each
workshop, directly linked to performance bonuses, with a focus on assessing quota achievement rate, and month-
Of which: Externally Purchased Photovoltaic Power kWh 1,779,581 over-month and year-over-year reductions, driving efficient water resource utilization through rigorous assessment.
Steam tonnes 8,867.24 Water Resource Management Target
Gasoline liter 17,157.16
Reduce water consumption intensity by 40% by 2030 compared to the 2023 baseline year.
Diesel oil liter 12,453.79
Natural gas m³ 5,725
Water conservation measures
Total direct energy consumption Tonnes of standard coal 40.89
The Company implements circulating cooling water and continuously improves water resource efficiency and
wastewater reuse rates through measures such as installing water-saving facilities, adopting circulating water systems,
Total indirect energy consumption Tonnes of standard coal 6,034.65
and enhancing wastewater purification treatment. Additionally, the Company plans to construct a 600 m³ initial
rainwater collection tank to promote rainwater resource utilization, further enhancing the level of water resource
Clean Energy Consumption Tonnes of standard coal 226.32
recycling, demonstrating its commitment to green development through concrete actions, and showcasing corporate
environmental responsibility.
Total energy consumption Tonnes of standard coal 6,075.54
Ton standard coal/
Energy consumption intensity 0.14
RMB 10,000 revenue
Note: The statistical scope covers YUEAN.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Case Study Material Utilization Management
The Company has established management procedures including the Material Approval Control Procedure, the
Reclaimed Water Reuse Management System for Oils, Reusable Drums, Pallets, and Packaging Drums, and the Warehouse Management
System, constructing a whole-process material control system from material source to warehouse management to
To reduce water consumption and production costs, the Company has entered into a deep collaboration
ensure standardized and efficient material utilization.
with the local wastewater treatment plant. A feasibility study is being conducted on using reclaimed water
for production cooling water, exploring new models for efficient water resource utilization.
Once implemented, this project will effectively replace fresh cooling water, significantly reduce fresh water Material Approval Control Procedure
intake and wastewater discharge, lower water costs, demonstrate the Company's commitment to green
New material introduction request submitted
and low-carbon responsibility, and provide a practical reference for water resource recycling in the
industry. Supplier search / audit
Sample evaluation
Sample trial
Sample feedback
Indicator Unit 2025
Sample judgment NG
Total fresh water intake tonnes 376,407
OK
Of which: municipal water purchase tonnes 376,407
Small batch trial
Total water consumption tonnes 131,938
Trial feedback
Water resource use intensity Tonnes / RMB 10,000 NG Trial judgment
revenue
OK
Note: The statistical scope covers YUEAN.
Sample approval
Mass production launch
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Innovation-Driven
Value Enhancement
Achievements in 2025
R&D Investment 2,084.16(in ten thousand RMB)
Cumulative Authorized Patents 44 (count)
Total number of trademarks: 10 items
Key ESG Issues in this Chapter
Innovation Drive; Product and Service Safety and Quality;
Supply Chain Safety; Data Security and Customer Privacy
Protection; Due Diligence
SDGs in this Chapter
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
R&D Capability Certification
Innovation-Driven Development Through deep technical expertise and innovation accumulation in its niche,
the Company has received prestigious certifications such as High-Tech
Enterprise and "Little Giant" Specialized and Sophisticated Enterprise, and
YUEAN places technological innovation at its core development engine, deeply cultivating the field of micro-nano metal
was recognized as a 2025 Jiangxi Province Manufacturing Single
powder materials and building an innovation system that integrates independent R&D with industry-university-research Champion Enterprise.
collaboration. Leveraging national-level scientific research platforms, the Company has broken through core
The Company has built a multi-level, full-chain innovation R&D platform,
technologies such as the carbonylation process, achieving carbon monoxide recycling and efficient conversion of low-
including a National Postdoctoral Research Workstation, Jiangxi Provincial
purity raw materials. This has established a green and efficient industrial pathway, securing independent control and Enterprise Technology Center, Jiangxi Provincial Carbonyl Metal Powder
industry-leading advantages in carbonylation technology. Materials Engineering Research Center, and Jiangxi "Haizhi Plan" YUEAN
Workstation. It has also been approved for the Jiangxi Provincial
Postdoctoral Innovation Practice Base and the Dayu County New Energy High-Tech Enterprise Certificate
Governance and New Materials Pilot Base. This forms a "national + provincial + local"
integrated innovation R&D and achievement transformation system.
To standardize the entire R&D process management and enhance innovation efficiency, the Company has formulated
and implemented a series of policy documents, including the R&D Project Management System, New Product Development 2025 Key Performance
Management System, and New Product Design and Development Process Management System, establishing a standardized, closed-loop
R&D management system. Concurrently, the Company has established a Technology Center, which centrally National High-Tech Enterprise: 1
coordinates core functions including technology R&D, product development, process improvement, innovation
management, and external collaboration, enabling integrated operations of R&D planning, process supervision, and National Postdoctoral Research Workstation: 1
achievement transformation, thereby supporting the Company’s continuous innovation and high-quality development.
Postdoctoral Innovation
R&D Process R&D Team Development Practice Base
The Company places great emphasis on R&D team development, having formulated the Technical Talent Introduction and
Project Plan Determine the focus of annual R&D work and projects requiring initiation based on Management Measures to build a core R&D team with a sound professional structure and outstanding innovation
the Company’s overall business plan and R&D roadmap. capabilities. A robust mechanism for talent attraction, cultivation, retention, and utilization has been established. Through
high-end talent recruitment and internal pipeline development, the Company continuously strengthens its R&D workforce,
while providing comprehensive R&D support, incentive mechanisms, and growth platforms to fully stimulate the
innovation vitality and motivation of R&D personnel.
Project Application Form a project team based on the annual plan, define R&D objectives, and
R&D Team Composition
apply for project initiation.
By Age Group By Education
Project Initiation Analyze the necessity and feasibility of the project, develop detailed Under 30 (exclusive) Bachelor's Degree and Below
research content, methodology, schedule, project plan, and R&D budget. 30-40 (inclusive of 30, exclusive of 40) Master's Degree
R&D Implementation 50-60 (inclusive of 50, exclusive of 60)
Conduct laboratory-scale, pilot-scale, and mass-production R&D as per
the initiation requirements and plan. 60 and above 18
Project management Carry out process and quality control, R&D expense allocation, project
changes, etc., as required by R&D project management standards.
Project Closing and
Upon meeting closing conditions, inspect and summarize completion
Acceptance
status, conduct input-output analysis, and submit a written acceptance
application. The Company forms an acceptance team to organize the
acceptance process.
Total R&D team size: 73 persons，representing 11.48% of total employees.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
R&D Innovation Incentives Opportu- Time Value Potential
Opportunity Description horizon Chain Financial
The Company encourages the transformation of scientific and technological achievements, having formulated the Countermeasures
nity Type of impact Segment Impact
Management Measures for Transformation of Scientific and Technological Achievements. An annual Contribution Award Affected
for Transformation of Scientific and Technological Achievements is established to recognize and reward individuals and
units that have successfully transformed achievements or made significant contributions. In internal title evaluations, the Leverage qualifications such as National High-
Company incorporates achievement transformation as a criterion, giving preference to those who have accomplished or Rapid development of the Medium Reduced Tech Enterprise and Manufacturing Single
Policy new materials industry, with Champion to actively apply for policy support
contributed to such transformations. to Operations operating
Opportuni- increasing government including R&D subsidies and technology
support for high-tech long term costs upgrade interest subsidies, converting policy
For outstanding project rewards, the Company evaluates and awards an Excellent Project Award annually. In 2025, a ties
industries. support into development momentum.
total of RMB 240,000 in project bonuses was distributed, precisely incentivizing teams and individuals who made
significant contributions to R&D efforts.
Strategy
Impact, Risk and Opportunity Management
Time Value Potential
Risk Type Risk Description horizon Chain Financial Countermeasures To effectively mitigate potential risks, the Company has established a robust R&D process risk control system. Through
Segment
of impact Impact systematic risk identification, precise risk assessment, and targeted countermeasures, comprehensive protection is
Affected
provided for the smooth and efficient implementation of R&D projects.
R&D projects lacking scientific 1. Formulate R&D plans based on corporate
justification or adequate strategy, market, and technology landscape;
feasibility assessment may Increase establish sound project initiation and approval Management Process
systems (e.g., R&D Project Management
Technological lead to insufficient innovation Medium in System) ensuring feasibility through initiation
or resource waste; failure to Operations
Innovation Risk effectively identify and protect term operating and assessment processes; develop research
plans and reports with management approval. Risk Identify risks in R&D initiation, process, acceptance, and outcome commercialization;
IP may restrict use of new costs
technologies or products. identification and
promptly, and maintain IP archives. assessment
feasibility, market prospects, and resource investment.
Strengthen management of R&D processes Risk Develop control objectives based on assessment results; implement a series of
Inadequate R&D staffing, lack and incentives for R&D personnel; establish
of management and incentive Response
systems to protect research outcomes, targeted control activities; summarize activities into relevant policies or
systems for core researchers, Increase in Measures
or poor R&D process including patents, non-patent technologies, management processes.
Personnel risk long-term Operations operating
management may lead to trade secrets, and related drawings,
excessive costs, fraud, or trade costs programs, and materials; ensure proper
secret leakage. staffing and job responsibility systems to keep Effectiveness Periodically evaluate the effectiveness of policies or management processes; revise
R&D processes efficient and controllable. Evaluation of
them promptly based on actual conditions to ensure their continued effectiveness.
Measures
Inadequate application of
research outcomes or weak 1. Enhance commercialization of research
protection measures may outcomes by establishing an integrated
Commercia-
lization Risk
harm the Company’s interests;
insufficient technical expertise, Increase in mechanism combining research, production,
and market to promote transformation.
Indicators and Targets
capability, or independence of long-term Operations operating
acceptance personnel may costs 2. Establish and improve outcome acceptance Aligned with the Company’s strategic development plan and industry technology trends, and fully integrating market
lead to inaccurate acceptance systems, organizing independent reviews and
results; underinvestment in demand, customer pain points, and industry policy direction, the Company sets scientific R&D targets and plans,
testing and validation may acceptance by qualified personnel.
supporting technology iteration and market competitiveness through precise R&D orientation.
cause technology failure.
Control gaps during R&D R&D Target 2025 Completion
Establish a process management system for
may waste resources and R&D projects, using rigorous information
affect project progress and recording requirements, analyzing
Process risk outcomes; lack of project Increase in New product commercialization rate (new product sales as % of
experimental results, discussing process
expense ledgers or long-term Operations operating
issues, proposing solutions, and faithfully total sales) ≥15%.
incomplete records of R&D costs recording information. Maintain R&D archives
Achieved
expenditures may lead to with clear documentation scope and
Patent applications >4, patents granted >4.
cost overruns. responsible departments. Secured innovation funding >RMB 500,000.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Indicator Unit 2025 Case Study
R&D investment 10,000RMB 2,084.16 Ningxia YUEAN Metal Soft Magnetic Micro-Nano Powder Production
R&D investment as % of main business revenue % 4.76 Demonstration Line Project Officially Receives Trial Production Approval
During the reporting period, the Ningxia YUEAN Metal Soft Magnetic
Number of new product development projects Count 27
Micro-Nano Powder Production Demonstration Line Project was
successfully completed and officially received trial production approval
on December 31, 2025, entering a new phase of production
Collaborative R&D operations.
Leveraging the Company’s accumulated core technologies, this project
The Company actively builds an open and collaborative R&D innovation ecosystem, engaging deeply in industry-university- uses ilmenite as raw material to efficiently co-produce carbonyl iron
research cooperative R&D. Long-term, stable partnerships have been established with universities, research institutes, and powder and synthetic rutile, pioneering a new development path that
high-quality upstream/downstream industry chain partners, focusing on joint efforts in cutting-edge industry technologies and combines high efficiency and green attributes. Upon full operation, the
core product upgrades, continuously strengthening the Company’s technological linkage and innovation synergy within the project will add an annual production capacity of 3,000 tonnes of
industry chain. carbonyl iron powder and 7,500 tonnes of synthetic rutile, providing
stable and reliable key material support for high-end electronics,
precision manufacturing, and other industries.
High-Performance Micro- The Company's Technical Center and the Ganjiang Innovation Academy of the
Nano Powder Atomization Chinese Academy of Sciences jointly undertook the "Performance-Based
Preparation Technology Contracting" project of Ganzhou City in 2024, titled "High-Performance Micro-Nano
and Engineering
Application (Typical
Powder Atomization Preparation Technology and Engineering Application (Typical
Demonstration Application)."
Supporting Industry Upgrading
Demonstration
This project successfully passed the mid-term assessment conducted by the During the reporting period, leveraging its technological strengths and industry responsibilities, the Company supported
Application)
Ganzhou Municipal Science and Technology Bureau in September 2025. the upgrading of the micro-nano metal powder industry through multi-dimensional initiatives. The Company actively
participated in various industry exhibitions, sharing its innovation achievements and production experience to enhance
Joint R&D with University of Science and Technology Beijing and Nanchang the overall technological level of the industry.
Water-Gas Combined University on amorphous/nanocrystalline soft magnetic composite materials and
Amorphous Atomized their high-temperature resistance performance. Achieved performance
Powder Project improvements through optimized process design and cross-experimentation.
Fe-Based Ultrafine Joint R&D with University of Science and Technology Beijing and Nanchang
Powder Water and Gas University. Achieved significant yield improvements for some target ultrafine
Atomization Process and powders, with fine powder yield increased by 30% for certain products compared
Equipment Project to pre-optimization levels.
Scientific and technological innovation achievements
During the reporting period, the Company continued to deepen core technology development, achieving multiple key scientific Metallurgy Exhibition 2025 Powder Metallurgy & Advanced Ceramics
and technological innovation outcomes that enhanced both technology and product value. Exhibition 2025
During the reporting period, the Company focused on technological innovation and industrial upgrading in the new materials
sector, driving the development of new productive forces across three dimensions: core process breakthroughs, high-end
technology R&D, and green preparation upgrades. By modifying coarse-grained powder materials through a special process, Based on its core technology accumulation in carbonylation preparation and powder modification, the Company has
the Company produced powder products with advantages including good flowability, excellent processing properties, and taken the lead in drafting national and industry standards. Drawing on its production practices and technology
strong downstream process compatibility. This technology also consumes coarse powder inventory, achieving cost reduction, frontiers, the Company defines key indicators such as product quality, production processes, and environmental
efficiency gains, and economic benefits. The Company broke through the preparation technology for high-performance alloy controls, filling gaps in technical specifications and guiding the industry toward standardization and normalization.
steel materials for power tools, successfully expanding the application boundaries of metal injection molding technology in the During the reporting period, the Company took the lead in drafting a group standard for carbonyl iron powder used in
high-performance power tool sector. The innovative carbonylation process for treating mineral sands to produce carbonyl iron
electronic components.
powder successfully overcame key industrial production bottlenecks for this technology, further solidifying the Company’s
technological moat. Through a series of independent innovation achievements, the Company has activated new drivers for
industrial development.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Intellectual Property Protection Governance
Following the quality management policy of "Quality First, All-Employee Participation, Process-Focused, Customer
Satisfaction," the Company has formulated the Quality Manual, established a sound quality management system,
The Company has formulated management policies including the Intellectual Property Management Manual, R&D appointed a management representative, and defined quality control standards, job responsibilities, and operating
Achievement Management System, and R&D Achievement Protection System, establishing a clear, well-defined, and procedures for each stage. This ensures quality management requirements are embedded into R&D, procurement,
comprehensive intellectual property management system. The General Manager serves as the primary responsible production, and testing, laying a solid foundation for product quality.
person, fully responsible for setting IP policies and objectives. The IP Office, as the core management department, The Quality Inspection Department, as the quality management function, is responsible for coordinating related work,
coordinates all IP management affairs, with dedicated staff responsible for key areas including patents, trademarks, implementing quality control details comprehensively, and conducting quality assessments to ensure steady product
and copyrights. quality improvement, continuously providing customers with high-quality products and service experiences.
Intellectual Property Protection Measures The Company continuously strengthens its product quality management system, having obtained multiple system
certifications including ISO 9001 and IATF 16949. Leveraging its excellent quality control practices, during the reporting
period, the Company’s self-developed high-purity carbonyl iron powder successfully passed national food safety
standards review and received the Food Additive Production License from the State Administration for Market
Managed and maintained by designated trademark personnel.
Regulation, officially entering the food additive sector.
During R&D, if patentable conditions are met, patent applications shall be filed promptly to obtain legal
protection. Key Responsibilities of the Quality Inspection Department
Discovered infringements shall be promptly reported to the IP Office, which shall assist in evidence collection
and investigation. Prepare and manage quality system documents, implement policies and objectives, conduct performance
assessments, implement and maintain the quality system.
While protecting its own patents, the Company shall also avoid infringing the patent rights of others.
Establish quality management mechanisms, organize activities, manage plans and objectives, monitor
management processes, implement improvements.
Control inspection and release, inspect raw materials, auxiliary materials, products, and processes; control
product release.
identification and evaluation.
Cumulative authorized patents: 44，including 32invention patents and 12utility model patents
Quality Management Structure
Annual patent applications: 3 Annual valid patents granted: 7 Head of Quality Control Department
Total number of trademarks: 10 items Quality Management Team Leader Laboratory Director
QCOn-site QC (Quality Control) Testing Room Team Leader
Physical Testing Chemical Analysis Magnetic Property Analysis Melt Indicator shrinkage
Ensuring Reliable Quality density test
YUEAN consistently places product quality at its core development principle. Strictly complying with laws and
regulations such as the Product Quality Law of the People’s Republic of China, the Company continuously improves
and strengthens its full-process quality management system, implementing comprehensive and refined control over all
production stages to ensure stable product quality.
During the reporting period, the Company’s quality management system operated efficiently, with quality control
measures effectively implemented, and no major quality safety incidents occurred. YUEAN IATF 16949 Certificate YUEAN ISO 9001 Certificate
To deepen Company-wide quality awareness, the Company regularly conducts multi-dimensional quality-specific training.
Training covers employees across departments and production positions, focusing on the quality management policy,
Quality Manual specifications, position-specific quality control standards, and practical operating points, effectively
enhancing the quality control capabilities and practical skills of all employees.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Case Study Time Value Potential
Opportu- Chain
Opportunity Description horizon Financial Countermeasures
nity Type of impact Segment Impact
Affected
Training on Preparation of Standard Titration Solutions of Chemical Reagents
Automated production lines
On July 27, 2025, the Company organized training for Quality Inspection Department employees on the will effectively reduce the Reduced
Technological Medium Operations Continuously enhance automation levels by
preparation of standard titration solutions of chemical reagents, in accordance with GB/T 601-2016 impact of human deviation on operating introducing new technologies and equipment.
Opportunities to long term Downstream
product quality, improving costs
Preparation of Standard Titration Solutions of Chemical Reagents. The training clarified documentation product consistency.
requirements for weighing, volume adjustment, calibration, ambient temperature, and instrument
information across the entire process, effectively improving personnel’s quality inspection capabilities and
Adjusting product mix and Increase
reinforcing quality assurance through standardized procedures. developing new products Medium 1. Expand production scale and introduce new
Market in equipment according to strategic plans.
creates new development to downstream
Opportunities operating
opportunities for the long term 2. Unlock potential of existing equipment.
Company. income
Number of quality training sessions: 10 Number of quality training participants: 200 person-times Impact, Risk and Opportunity Management
Total quality training hours: 200 hours The Company has formulated and implemented the Risk and Opportunity Control Procedure, which clearly defines the
responsibilities and authorities of the Quality Inspection Department in risk and opportunity management. In strict accordance
with risk management standards, the Company systematically carries out risk identification, assessment, and control to
comprehensively prevent potential quality risks and precisely capture development opportunities arising from industry
evolution and market upgrades.
Strategy Risk and Opportunity Management Process
Time Value Potential Risk and
Chain Each department identifies risks associated with personnel,machinery,materials,
Risk Type Risk Description horizon Financial Countermeasures Opportunity
of impact Segment Impact methods, and-environm ent, and-completesthe Risk and-Opportunity Assessment Analysis-Form.
Affected Identificatione
Carbonyl iron powder and
atomized alloy powder require Risk and
strict control of particle size, Opportunity The assessm ent team grades risks using criteria for severity, frequency of occurrence
Decrease
Process
purity, sphericity, oxygen
Short and Operations, in 1. Upgrade testing equipment and systems. Assessmente and acceptability, and updates the Risk and-Opportumnity Assessment Analysis Form.
Control Risk
content, and particle size medium term Downstream operating
distribution; minor deviations 2. Improve quality control systems.
income
may cause downstream Develop measures based on assessment results and prepare the Risk and- Opportunity
product failure. Coping methods
Review Report.
Demand for performance, 1.Increase R&D in high-frequency low-loss soft
strength and precision in magnetic powder, ultra-high-strength
downstream products such as structural powder, and ultra-fine high-
Downstream Short Decrease precision powder; keep pace with
Coping methods Validate measures based on actual conditions and periodically improve them.
precision electronic and in
demand Operations, downstream technology roadmaps and
components continues to rise. medium Downstream operating
iteration risk indicator upgrades.
Products that fail to meet the term income
updated quality standards 2.Track industry standards and competitor
face the risk of being
eliminated.
dynamics; proactively plan next-generation
materials to avoid passive obsolescence.
Indicators and Targets
The Company has established clear, quantifiable quality targets throughout the product lifecycle and conducts quality
product requirements, including explicit assessments. Overall quality targets are broken down and implemented at each department level according to core
Missing requirements during customer requirements and implicit responsibilities and business nodes, ensuring target execution and building customer trust through stable, reliable
system planning; failure to legal/regulatory/industry-specific product quality.
update during system requirements. Total Quality Target 2025
Increase in
Planning changes; incomplete risk short period Operations
Risk
operating 2. Establish a risk identification team to
identification; ineffective costs assess each process. Achieved
implementation of planned
First-time product acceptance rate >96%
measures. 3. All planned measures must be thoroughly
discussed and confirmed before finalization Customer satisfaction with products and services >95% Achieved
to ensure effective implementation.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Indicator Unit 2025 Customer Rights Protection
Product pass rate % 100 The Company has formulated and strictly implements management documents including the Customer Service Control
Procedure, Customer Credit Management System, and Customer-Related Process Control System. Adhering to the core
Annual internal quality audits Count 1 service principle of "customer-centric," the Company standardizes full-process service behaviors and continuously improves
service standardization and professionalism.
Third-party spot inspections engaged Count 2
The Marketing Department leads customer management efforts, responsible for establishing a complete and efficient closed-
loop customer service mechanism to ensure timely response to customer inquiries and rapid problem resolution.
The Company actively uses its Customer Relationship Management (CRM) system to standardize customer information
Quality Assurance Measures management, service follow-up, and business collaboration processes, achieving systematic and standardized customer
resource management.
Full Life Cycle Quality Management Complaint Handling Mechanism
The Company implements refined, full-dimensional monitoring across all stages of the product production process, strictly
following the full-chain quality control strategy of "prevention before occurrence, control during processing, and verification Pursuant to the Customer Service Control Procedure and Customer-Related Process Control System, the Company has
after completion." For key nodes including raw material incoming, semi-finished processing, and finished product dispatch, the established a full-process complaint management mechanism covering complaint receipt, root cause analysis, corrective
Company defines inspection standards, operating procedures, and judgment criteria, ensuring full traceability and strict action implementation, follow-up verification, and closed-loop feedback. Responsibilities and time limits are defined for each
control at every stage. stage, ensuring every complaint receives a response and resolution, continuously improving service quality and customer
satisfaction.
Full Life Cycle Quality Management During the reporting period, the Company received 43 customer complaints, achieving 100% timely response and resolution
rates. Among these, 38 cases have been fully resolved with customer confirmation. The remaining 5 cases, involving technical
Raw Inspect purchased raw materials/recycled materials and auxiliary materials according to bottlenecks and extended validation cycles, have dedicated action plans and are progressing steadily.
material the Raw/Auxiliary Material Technical Standards and Raw Material Inspection Work Instructions to ensure
control compliance with enterprise standards.
Inspect semi-finished products from carbonyl, magnetic material, atomization, and Customer complaint channels WeChat telephone face-to-face communication
Process
Supervision feedstock production according to the Semi-Finished Product Inspection Work Instructions
to provide reference for finished product production.
Complaint Handling Process
Outgoing Inspect finished products (carbonyl, magnetic, atomized, feedstock) according to the
Testing Product Inspection Work Instructions based on enterprise standards or customer requirements.
Customer Complaint Initiation
The Company has implemented Phase I of its Manufacturing
Execution System (MES) in the granulation and magnetic material Containment Action Development
workshops, carrying out digital upgrades in production planning,
process control, quality monitoring, material data, and warehouse Root Cause Analysis
management, achieving intelligent production processes and
effective product quality control. NG
Corrective Action Development and Implementation
Corrective Action Verification
Hazardous Substance Testing OK
The Company places great emphasis on compliant production, having formulated and strictly implemented the Hazardous
Substance Management System. A full-chain hazardous substance control mechanism covering raw material access, process NG Prevention and Standardization
control, finished product verification, and traceability management has been established to systematically identify, monitor,
and control potential hazardous substances throughout production, preventing risks at the source and ensuring product
quality compliance and reliability.
The Company conducts regular testing and issues test reports. As of the end of the reporting period, the Candidate List of Customer Response
Substances of Very High Concern (SVHC) has been updated to 250 substances, demonstrating the Company’s firm
commitment to environmental protection and health. Documentation and Archiving
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Customer satisfaction Case Study
The Company has established a systematic, normalized customer value management system, strictly implementing
Training on Supplier Selection and Management Control Procedure
the Customer Satisfaction Measurement Procedure. Annual multi-dimensional customer satisfaction surveys are
conducted according to plan. Through scientifically designed questionnaires, standardized collection of feedback, and On December 23, 2025, the Company organized specialized training for all procurement personnel,
in-depth statistical and trend analysis, the Company comprehensively understands genuine customer experiences and focusing on the revised Supplier Selection and Management Control Procedure, explaining it in detail to
improvement suggestions, ensuring objective evaluation, traceable feedback, and actionable issues. further standardize procurement processes and strengthen compliance awareness and professional
capabilities.
Number of customers surveyed: 90 Customer satisfaction score: 98.6points Digital Supply Chain Construction
The Company actively advances digital supply chain construction, achieving full digital control of procurement
operations. Leveraging its ERP system, the Company has established a closed-loop management process covering
procurement requisition, tiered approval, price negotiation and comparison, order placement, contract approval,
payment application, receiving and acceptance, warehouse receipt, and invoice settlement. The process is traceable
Responsible Supply Chain and all operations are logged. System-driven automatic document forwarding and cross-departmental collaboration
effectively reduce manual errors and communication costs, strengthen process control and risk prevention, enhance
procurement transparency and operational efficiency, and provide solid support for a standardized, efficient, and
YUEAN is committed to building a responsible supply chain management system, strengthening supplier access,
intelligent supply chain.
process control, and performance evaluation, and promoting compliant, green, and sustainable procurement.
Strategy
Governance
Time Value Potential
The Company has formulated the Supplier Selection and Management Control Procedure and Procurement Business Risk Type Risk Description horizon Chain Financial Countermeasures
of impact Segment Impact
Process, optimizing procurement processes and internal controls, continuously improving supply chain compliance, Affected
stability, and operational efficiency.
The Procurement Department, as the management function, is responsible for material and spare parts supply and 1. Reduce the supply of single supplier;
Delay of raw material delivery,
warehouse management, providing guidance, supervision, inspection, and services. It formulates and improves relevant interruption of supply, Short and Increase in 2. Sign an annual contract;
Supply-side Upstream,
management systems, handles supplier access, selection, evaluation, and information management, establishes a price substandard quality and medium
Operations
operating
risk 3. Strict warehousing inspection;
fluctuation of raw material term costs
database, conducts market and price analysis, coordinates centralized procurement, collects and analyzes market prices.
information, and coordinates procurement transportation, acceptance, and dispute resolution.
Logistics Increase carriers;
Personnel Capability Development and
warehousing
Risks of damage to goods,
delays and inventory backlog.
short
period
Upstream,
Operations
in
operating 2. Implement standardized packaging;
risk costs 3. Implement first-in, first-out management
and optimize inventory threshold.
The Company places high importance on the professional development of its procurement team, regularly conducting
specialized training for procurement personnel. Training focuses on core topics including procurement systems and
Production Short
processes, supplier management, price analysis, risk prevention, integrity and self-discipline, and supply chain Upstream,
Increase in
and Capacity mismatch, biased and
governance, enhancing procurement personnel’s professional skills and compliance awareness. operating
demand demand forecasts. medium Operations safety inventory system.
costs
risk term
Policy adjustments, force
majeure (such as typhoons, Short
Increase in 1. Track policy changes;
External earthquakes, tsunamis and and Upstream,
operating
risks other natural disasters), etc. medium Operations 2. Formulate an emergency response plan.
costs
affect supply. term
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Opportu-
nity Type
Opportunity Description
Time
horizon
Value Chain
Segment
Potential
Financial Countermeasures
Indicators and Targets
of impact Affected Impact
The Company sets overall supply chain management targets in line with its development strategy and operational
realities, continuously improving supply chain stability, reliability, and overall competitiveness.
The Company’s soft magnetic
powder is primarily used in
manufacturing miniaturized, Supply Chain Security Management Targets 2025 Status
lightweight, low-power molded
inductors, which offer significant
development of soft magnetic powder
advantages in high-frequency Increase in
Market operating scenarios. With rapid Medium and continuously optimize product Conduct responsible minerals due diligence to ensure no non-compliance risk
downstream operating quality; related to conflict minerals in any supply chain link; strictly comply with
Opportunities growth in automotive electronics, to long term
income
consumer electronics, servers, and 2. Actively explore the market and tap the relevant domestic and international laws, regulations, and industry guidelines;
graphics cards, demand for such market potential. prohibit non-compliant behavior.
inductors continues to grow,
providing broad market space for Standardize quality control across all supply chain links to ensure procured
the Company. Achieved
materials and processed products meet Company quality standards; eliminate
production or product risks arising from supply chain quality issues.
Guide suppliers to adopt green, low-carbon development concepts; promote
supply chain cost reduction, efficiency improvement, energy savings, and
emissions reduction; enhance sustainable supply chain operation capabilities.
Impact, Risk and Opportunity Management
Indicator Unit 2025
To effectively ensure the safe and stable operation of the supply chain, the Company uses the Risk and Opportunity
Assessment Analysis Form to systematically identify, monitor, and analyze potential risks in supply chain areas including Total number of suppliers Count 340
procurement, suppliers, logistics, pricing, quality, and external environment. Concurrently, considering industry trends and
market changes, the Company actively identifies development opportunities such as supply chain optimization, cost Number of significant risk and impact events in the supply chain Count 0
control, resource synergy, and efficiency improvement, effectively mitigating supply chain fluctuation risks.
Risk and Opportunity Management Process
Full LifeCycle Management
Risk and Opportunity Identify and record risks and opportunities at different stages of the procurement
Identification process. The Company has established a comprehensive supplier full lifecycle management system. It has formulated policy
documents including the Supplier Selection and Management Control Procedure. Through these, it continuously optimizes supplier
Risk and Opportunity structure and cooperation quality, strictly controlling upstream supply chain risks.
Assessment According to each identified risk and opportunity, the risk factor of each risk is
obtained by scoring from the perspective of severity and risk frequency.
Supplier Lifecycle Management
Develop response measures for identified risk items, identify responsible The Company conducts preliminary screening of candidate suppliers by collecting
Coping methods qualification certificates from prospective suppliers, organizing suppliers to complete the
departments, and record the follow-up status.
"Supplier Questionnaire", and performing supplier due diligence. After passing the trial
Supplier period, the "Supplier Capability Investigation and Evaluation Form" is completed, followed
Access by joint review by relevant departments. Upon approval, the supplier is included in the
approved supplier list, and relevant cooperation agreements are signed according to
regulations.
Emergency management Conduct on-site or desk audits for different supplier categories according to specified
Supplier Audit
frequency and methods.
To effectively prevent supply disruptions and ensure continuous and stable production operations, the Company has
Supplier Annually evaluate suppliers based on quality, price, delivery timeliness, and after-sales
improved its supply assurance emergency mechanism and strictly implements a non-single-source procurement Assessment service.
strategy, with special emphasis on managing risks for key raw materials. The Company proactively expands supply
Classify suppliers based on annual evaluation scores; take different actions for different
channels nationwide, continuously developing and qualifying backup alternative suppliers. In case of sudden market Supplier
classes (e.g., increase purchase volume, maintain volume, require corrective action with
fluctuations, logistics disruptions, or supplier anomalies, the Company can promptly activate alternative supply plans, Classification
reduced volume, disqualify).
minimizing disruption impact and ensuring safe, continuous, and reliable supply of raw materials and finished products.
Supplier Exit Terminate cooperation with suppliers violating national laws and regulations, breaching
contracts, or having quality non-conformance.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Integrity and Compliance Procurement Data Security Management System
The Company has formulated the Information System Management System and Data Security Management Measures, which define data
classification and protection levels, methods for identifying data security incidents, data security training and
The Company always adheres to responsible procurement, making integrity and compliance the core principles of education, and data security supervision and assessment. Additionally, the Company has established an
procurement operations. Integrity clauses are included in procurement contracts, explicitly prohibiting gifts of money, Informationization Leading Group and an Informationization Working Group, responsible for strengthening the overall
securities, valuable gifts, shopping cards, recharge cards, or other property between buyers and sellers and their coordination, process supervision, and implementation of data management, comprehensively enhancing information
personnel. Entertainment, travel activities beyond standard business meals, and other forms of improper benefit security protection capabilities and data compliance management levels.
transfers are also prohibited. The Company embeds integrity controls throughout the procurement process by requiring
To effectively prevent data security risks, the Company has established an information security emergency response
suppliers to sign the Sunshine Agreement, anti-commercial bribery commitment letters, and other documents,
mechanism, formulated the Information Security Emergency Plan, and conducted drills to improve emergency response
strengthening compliance monitoring and dynamic control to ensure a compliant and healthy supply chain. capabilities. In December 2025, the Company conducted a dedicated data and information security audit and issued
the Data and Information Security Audit Report. Furthermore, the ERP system provider provides monthly operation and
maintenance reports that include security protection analysis, achieving normalized and visualized security control.
Number of suppliers signing integrity Supplier integrity agreement signing
Case Study
agreements: 340 rate: 100% Information Security Emergency Plan Drill
On June 15, 2025, the Company organized a specialized emergency drill based on the scenario of
"ransomware attack leading to financial system paralysis," testing the scientific validity of the emergency
plan, cross-departmental coordination efficiency, and fault-handling capabilities. By simulating a real
Sustainable Supply Chain Construction attack scenario and standardizing emergency response procedures, the drill effectively enhanced the
team’s ability to rapidly respond to, block, and recover from cybersecurity incidents.
The Company actively promotes sustainable supply chain development, deeply embedding ESG management into the
entire supplier cooperation process. Suppliers are required to ensure that their products meet mandatory national
quality, environmental, and safety standards and to submit compliance documents such as certificates of quality,
ensuring product quality and compliance at the source.
The Company signs environmental protection agreements with suppliers, explicitly requiring compliance with domestic
Data Security Management Measures
and international environmental and hazardous substance restriction regulations including EU RoHS, Halogen-Free,
Packaging Directive, REACH-SVHC, EuP, and China RoHS. During performance, environmental control is a core Data security protection measures
requirement: suppliers must strictly implement moisture-proof and rain-proof protection measures throughout storage
and transportation. In case of packaging damage leading to product spillage, immediate cleaning and recovery are Data hierarchy Under the Data Classification and Grading Management Measures, data is
required to prevent environmental pollution. and classification classified as core, important, secondary, or public based on its importance,
management sensitivity, and potential harm from disclosure.
The Company places high importance on supply chain social responsibility and ethical compliance, strictly adhering to
global supply chain responsible procurement requirements. Suppliers are required to sign a Declaration of Non-Use of
Identification and Implement differentiated labeling, storage, transmission, use, and destruction
Conflict Minerals, prohibiting the use of mineral resources originating from conflict zones or involving illegal mining or management strategies for data of different levels.
human rights violations in raw materials and production processes, thereby preventing supply chain ethical and
compliance risks at the source and fulfilling corporate social responsibility. Strictly enforce the "least privilege" principle, granting granular access
Authority control authorization based on roles or attributes to ensure data is accessed and used
only by authorized personnel within authorized scopes.
Data Security Protection Data Protection Implement regular backup and retention strategies.
YUEAN consistently prioritizes data security and information governance as key management tasks, strictly complying
with relevant laws and regulations including the Data Security Law of the People’s Republic of China and the Personal Information Establish the Customer Property Control Procedure to strictly keep customer
Customer privacy information confidential. Based on business needs, set strict access rights and use
Protection Law of the People’s Republic of China. The Company has improved mechanisms for access control, process protection account-based tiered authorization to prevent the spread of customer personal
management, and emergency response to effectively protect its data assets, business information, and related data. information.
During the reporting period, the Company experienced no data security incidents or customer privacy leakage
Capability
incidents. enhancement Promote awareness of data security and confidentiality from time to time.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Case Study
Training on Business Data Classification Operations in Customer
Information Management System
On March 25, 2025, the Company conducted training
on business data classification operations within the
customer information management system. The training
focused on core system application scenarios, clarifying
access authorization standards for international and
domestic user classification, standardizing product data
coding and classification rules and product indicator
entry requirements, and providing detailed explanations
of functional usage for each business segment,
approval control at process nodes, and the roles and
business scopes of different user roles. The training
effectively improved the operational proficiency and
compliance awareness of relevant personnel.
Number of data security/customer privacy protection training sessions: 6 sessions
Total hours of data security/customer privacy protection training: 516 hours
Average training hours per person for data security/customer privacy protection: 0.81 hours/person
Number of participants in data security/customer privacy protection training: 86 persons
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Fulfilling Responsibilities
for Shared Social Value
Achievements in 2025
Labor Contract Signing Rate: 100%
Social Insurance Coverage Rate: 100%
Investment in Work Safety: RMB 4.2228 million
Safety Emergency Drills: 7 sessions
Key ESG Issues in this Chapter
Protection of the Employees' Legal Rights Benefits, Employee
Training and Development, Occupational Health and Safety,
Social Contribution, Rural Revitalization
SDGs in this Chapter
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Protection of Employee 2025 Key Performance
Rights and Interests Total Number of Employees: 636 Number of Ethnic Minority Employees: 15
To effectively safeguard the legitimate rights and interests of its employees, YUEAN strictly adheres to relevant national laws Number of Veteran Employees: 28 Proportion of Ethnic Minority Employees: 2.36%
and regulations, including the Labor Contract Law of the People's Republic of China and the Social Insurance Law of the People's Republic of China. The
Company has established internal management protocols such as the Human Resources Planning and Demand Control Management and the Number of Employees with Signed Labor Contracts: 636 Labor Contract Signing Rate: 100%
Employee Handbook, building a robust human resources management system to foster fair, just, harmonious, and stable labor
relations, thereby promoting the mutual development of the Company and its employees.
Equal employment Protection of Female Employees
Adhering to the core principles of diversity, equality, and inclusion, the Company provides all employees with fair and equal
The Company strictly follows regulations such as the Law of the People's Republic of China on the Protection of Women's Rights and Interests and the
opportunities in key areas such as promotion and training development. In accordance with the Employee Handbook, the
Special Provisions on the Labor Protection of Female Employees. It lawfully implements measures to protect female employees' rights,
Company firmly opposes any form of discrimination or harassment in its daily operations and management, strictly complies
explicitly prohibiting gender discrimination in employment. The Company ensures equal labor and development rights for
with laws and regulations, and prohibits child labor and forced labor. Concurrently, the Company fully respects the freedom of female employees and actively implements safeguard measures such as maternity leave, paternity leave, and breastfeeding
association and the right to collective bargaining lawfully enjoyed by its employees. leave to effectively uphold the legitimate rights and interests of female employees in the workplace.
During the reporting period, no incidents related to labor discrimination or forced labor occurred within the Company.
Case Study
Employee composition
Women's Day Team Building Activity
By Gender（person） By Age Group（person） To celebrate International Women's Day, the Company organized a team-building activity themed "Celebrating
Women: Warmth, Unity, and Pioneering Spirit" for its female employees. The activity included hands-on DIY
sessions, a welcoming tea break, and fun interactive games, effectively alleviating work-related stress,
Under 30 (exclusive)
Female 40-50 (inclusive of 40, exclusive of 50)
Male 50 and above
By Education Level（person） By Job Level（person） By Professional Function（person）
Production 71
Number of Women in Management: 37 persons Proportion of Women in Management: 44.58%
Technical
Below Bachelor's Degree Other Employees Sales
Bachelor's Degree 521 Middle Management Finance
Return-to-Work Rate for Employees After Parental Leave: 100%
Master's Degree Senior Management Administration
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Compliance Recruitment 2025 Key Performance
Recruitment Principles
Number of New Employees: 104
Merit-based Appointment Principle Equality Principle Comprehensive Principle
Employee Offboarding Management
The Company has formulated the Employee Offboarding Management System to regulate key processes such as offboarding approval,
work handover, and salary settlement. It clearly defines rights and responsibilities, ensuring the legitimate rights and interests
The Company has established a series of internal rules and regulations, including the Recruitment and Employment Management System of both employees and the Company, effectively mitigating labor dispute risks, and maintaining harmonious and stable labor
and the New Employee Onboarding and Probation Period Management Measures, to build a legal, compliant, and clearly structured relations.
recruitment management system. The Company treats all candidates equally, prohibiting any form of discrimination based on
gender, age, educational background, etc., and explicitly forbids the employment of child labor. The Human Resources
department has implemented an age verification mechanism, conducting multiple reviews throughout resume screening, 2025 Key Performance
interview invitations, and background checks to prevent any instances of child labor recruitment.
Recruitment Process Number of Employee Departures: 74 Total Employee Turnover Rate: 12%
The employing department submits a Personnel Requisition Form → The Human Resources department
assesses the workload and saturation of the employing department based on its staffing configuration and job
descriptions, proposes optimization suggestions, and reports to the General Manager for approval → Job
postings are released upon approval → Applicant information is screened, interviews and background checks
are organized → Onboarding procedures are completed for qualified candidates. Compensation and Assessment
The Company has formulated and strictly implements the Compensation Management System to establish a fair, just, and
The Company utilizes a combination of campus recruitment and social recruitment to broaden its talent acquisition scope and motivating compensation mechanism. Through a compensation structure consisting of "Base Salary + Seniority Pay +
enhance recruitment efficiency. It also actively recruits veterans to strengthen team cohesion and enhance the Company's Professional Title Pay + Performance Pay + Profit-sharing Pay + Other Pay (allowances, subsidies, bonuses, etc.)," the
overall competitiveness and social image. Company links individual performance directly with overall Company performance, fully stimulating team potential and
During the reporting period, the Company recruited 2 employees through campus recruitment and 102 employees through creativity.
social recruitment, including 1 veteran.
New employee recruitment Performance management
The Company conducts annual and monthly performance appraisals covering work completion status, work attitude, and
New Hires by Gender New Hires by Age Group other special rewards or disciplinary actions. If an employee has questions or objections regarding their performance appraisal
results, they may submit a Performance Appraisal Complaint Form to the Human Resources department within 3 days of the
appraisal period or its conclusion. If an investigation reveals unfair treatment during the appraisal process, corresponding
Performance Complaint Process
Employee files a complaint.
The Human Resources department conducts a preliminary review of the complaint report and decides whether
to accept it within 1 day.
Female Male reports the findings to the Performance and Compensation Assessment Management Team.
If the complaint is substantiated, the Human Resources department reassesses the complainant according to
the standard appraisal process, and the result serves as the employee's final appraisal score.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Number of Employees Receiving Regular Performance and Career Development Appraisals: 636 Number of Employees Covered by Social Insurance: 636 Social Insurance Coverage Rate: 100 %
Percentage of Employees Receiving Regular Performance and Career Development Appraisals: 100 %
Democratic Management
Benefits and Care The Company has lawfully established a labor union and a staff representative assembly, formulated the Labor Union Work System,
and fully implemented democratic management, encouraging employees to actively contribute ideas and participate in
The Company continuously improves its employee benefits system. Building upon statutory benefits, it designs tailored care corporate governance through the union platform. The Company has built an open and transparent internal communication
programs based on employees' actual needs, effectively enhancing employee satisfaction and sense of belonging, and system, establishing multiple channels such as email, WeChat, and face-to-face meetings to ensure that every employee's
strengthening team cohesion. Concurrently, the Company strictly implements standard working hour systems, ensuring opinions are heard promptly and responded to effectively, fostering an interactive management pattern that connects all
employees have adequate rest time and helping them achieve work-life balance, further safeguarding employee rights and levels.
stimulating team effectiveness.
During the reporting period, the Company announced and implemented the 2025 Restricted Stock Incentive Plan (Draft), granting a total The Company has established an employee grievance mechanism, setting up a grievance mailbox, and providing dedicated
of 2.8254 million restricted shares. hotlines for union leadership, as well as dedicated WeChat and phone channels for the Human Resources department,
ensuring employees can voice their concerns through diverse and convenient means.
Employee Benefit System
Basic Security Social insurance (five insurances), housing provident fund, commercial insurance
Number of Percentage of Union Number of Employee
Living security Employee dormitories, subsidized meals Union Members: 516 Members in Total Employees: 81.13% Complaints Received: 0
Special Allowances High-temperature subsidies, etc.
Holiday benefits Statutory holidays
Employee assistance
Holiday benefits Holiday gifts, etc.
Long-term incentives Equity Incentives The Company has refined its
employee assistance mechanism,
focusing on the actual needs of
Employee clubs, Company gym, cultural and recreational activity rooms, departmental team- employees facing difficulties.
Physical and
building, sick visitations, health talks, Health Day activities, mental health lectures, mental Through multidimensional measures
mental care
health articles via WeChat, cultural and sports activities, health check-ups, etc. such as financial assistance and
holiday visits, it effectively
addresses employees' life
challenges and work-related
problems, fostering a culture of
mutual support and enabling In June 2025, the Company organized During the Spring Festival of 2025,
employees to work with peace of visits to seriously ill employees and we offered condolences to employees
mind and develop steadily. distributed condolence money. in need and distributed holiday gifts.
Table tennis room Staff Reading Room YUEAN 20th Anniversary Celebration
and 2024 Annual Conference
Number of Employees Receiving Hardship Assistance: 13
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Employee Satisfaction Based on its business development and talent cultivation needs, the Company has established an internal trainer team
composed of professionals from the R&D department and various production business units. They conduct specialized training
on products and markets for functional departments such as Marketing, Investment & Financing, and the Board Office,
continuously improving the internal training system and the internal trainer team.
The Company conducts an annual employee satisfaction survey, collecting feedback via online questionnaires on dimensions
such as work environment, compensation and benefits, career development, and management communication. The survey 案例 Study
Case
results are analyzed to formulate improvement plans that are then implemented, addressing employee concerns in a
targeted manner, continuously optimizing the work atmosphere, enhancing employee belonging and satisfaction, and
promoting the mutual growth of the Company and its employees. New Employee Training
the Employee Handbook for new hires. This training
provided detailed explanations and Q&A sessions covering
Company rules and regulations, codes of conduct, job
Employee Satisfaction Rate: 92.65 % responsibilities, professional ethics, and rights protection. It
helped new employees understand the corporate culture,
clarify work requirements, integrate quickly into their
teams, and strengthen their foundation for compliant
performance.
Supporting Employee Development Case Study
YUEAN has established a comprehensive, multi-level employee career development system. By scientifically planning career Professional Skills Training
paths, it provides employees with clear growth trajectories, effectively stimulating individual potential. Concurrently, the
Company focuses on enhancing employee capabilities, creating a customized training curriculum system to support In 2025, the Company organized professional skills training
comprehensive employee development. for employees focusing on core job-related technologies
and key operational points, enhancing employees'
professional capabilities and performance levels.
Staff Training
The Company places great emphasis on employee training and development. It implements a personalized training
curriculum system covering new employees, professional skills, management and leadership, and general competencies,
aligned with core career development needs. Through tiered and categorized training design, it enhances employees'
professional abilities and competencies, solidifying the foundation for talent development.
Training system
Case Study
Training Categories Main Content
New employee training, safety training, job skills training, job transfer training,
Leadership Training
Internal Training continuing education training, departmental internal training, etc.
In 2025, the Company organized leadership-focused
training for middle and senior management centered on
team empowerment and work safety management,
Domestic and international short-term training, overseas study tours for senior comprehensively enhancing core management
Expatriate training executives, MBA program training, corporate manager training, professional capabilities.
qualification training, etc.
The Company encourages employees to actively use their spare time to participate in
Employee self-training
various trainings to improve their overall quality and professional abilities.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Occupational Health and Safety
Employee Training Investment: RMB 126,100 Number of Training Sessions: 207
YUEAN strictly complies with laws and regulations such as the Work Safety Law of the People's Republic of China and the Law of the People's
Total Training Attendances: 15,613person-times Total Number of Employees Trained: 636persons Republic of China on the Prevention and Control of Occupational Diseases. Adhering to the principle of "Safety First, Prevention Foremost;
Comprehensive Management, Employee Participation; Environmental Protection, Health Preservation," the Company has
established an occupational health and safety management system, continuously improving its management level to
Total Training Hours: 22,153 hours Average Training Hours per Employee: 34.83hours/person effectively safeguard employee health and ensure operational safety.
During the reporting period, no major work safety accidents occurred within the Company.
Employee Training Coverage Rate: 100%
Governance
Staff Development The Company has formulated management protocols including the Work Safety Management Rules and Regulations, Work Safety
Responsibility System, Work Safety Responsibility Assessment System, Work Safety Reward and Punishment System, and Occupational Health Management
System. It explicitly designates the General Manager as the primary person responsible for Company safety, with overall
The Company has formulated the Promotion Mechanism Management Measures and established a comprehensive employee career accountability for safety work. The Company has established a Work Safety Committee and an Occupational Health
development system. Through scientific design, it provides employees with clear growth paths to help them achieve their Leadership Group. Leaders at all levels have signed work safety responsibility agreements, solidifying the safety production
career goals. responsibilities of leaders at each level, functional departments, and all positions, ensuring the comprehensive implementation
of the work safety responsibility system across all employees.
Employee promotions at the Company are based on core criteria including character, ability, attitude, and performance, with a
comprehensive assessment of professional ethics, job competency, sense of responsibility, and work contribution. Promotions The Company regularly conducts work safety responsibility assessments and has established a supporting reward and
are carried out through a combination of merit-based selection from annual performance appraisals and internal competitive punishment mechanism. Individuals and teams achieving outstanding safety performance or making positive contributions
bidding for vacancies. are recognized and rewarded, while those violating procedures or responsible for safety incidents are penalized strictly
according to regulations, thereby reinforcing safety responsibility awareness among all employees.
During the reporting period, the Company obtained ISO 45001 Occupational Health and Safety Management System
Career Development Pathways certification.
Director
Department Head Responsibilities of the Production Safety Committee
Director
Supervisor
Management Staff Member Director
Department Head Implement national and higher-level policies, principles, laws, and regulations concerning work safety and labor
Workshop Director protection; study and decide on major work safety matters; guide, supervise, and inspect the work safety efforts of
Team Leader various departments.
Production Worker Chief Engineer Promote the standardization of work safety and develop a safety culture.
R&D Department Head
Regularly organize safety inspections, analyze the work safety situation, and oversee the rectification of major
R&D Director
safety hazards.
Senior Technician
Technical Technician Organize work safety competitions and activities; select and recognize advanced units and individuals in work
safety.
Develop safety technology measures and management systems, supervise their implementation, and review "three
simultaneity" projects.
Investigate and process reports on major accidents; propose handling opinions and formulate preventive measures.
Number of Internal Employee Transfers: 7
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Responsibilities of occupational health leading group Strategy
Organize pre-employment, in-service, and post-employment Time Value Chain Potential
occupational health examinations for employees. Risk Type Risk Description horizon Segment Financial Countermeasures
of impact Affected Impact
Organize occupational health education and training.
The Company produces products
Provide occupational health protection facilities and personal protective such as carbonyl iron powder and 1. Provide employees with protective
atomized alloy powder, generating equipment;
equipment that meet occupational disease prevention requirements.
a certain amount of airborne metal
powder dust during production. If 2. Conduct occupational hazard detection
Organize daily monitoring of occupational disease hazard factors in and assessment, continuously optimize
employees inhale this dust over a
various workshop work areas. prolonged period without correctly the working environment;
wearing protective equipment, it
Establish monitoring files for occupational disease hazard factors, may cause lung diseases such as 3. Provide annual health check-ups for all
occupational health management ledgers, and related records, etc. pneumoconiosis. employees, and specialized occupational
Occupational Health and Safety health check-ups for specific positions;
The Company's production involves
Management System Certification sulfuric acid, hydrochloric acid,
information placards in prominent
Occupati- acetone, potassium permanganate
locations, areas with occupational
Safety Education and Training onal
health
and other chemicals. If the
protection is improper during
Short,
medium
Increase in hazards, and key zones, and produce job-
loading, unloading, handling and Operations operating specific risk information cards and
risks and
The Company has established the Safety Training and Education Policy. During the reporting period, it implemented tiered use, it may cause health hazards to costs warning signs, clearly indicating main
long term
occupational health and safety training initiatives, constructing an integrated internal-external training system. Internal training employees. safety risks, potential accident categories,
focused on operational competencies, utilizing diverse formats to strengthen workforce safety capabilities. External training consequences, control measures,
leveraged specialized resources, enabling participation in professional development programs to remain abreast of regulatory Equipment operating within the responsible units, emergency measures,
updates and industry best practices, thereby enhancing risk management capabilities and reinforcing the Company's safety factory generates high-intensity and reporting methods;
management framework. noise. Employees working in such
environments long-term may suffer 5. Establish a chemical management
hearing damage. Additionally, system to standardize process
vibration from certain equipment management;
can cause hand-arm vibration
syndrome (HAVS) with prolonged 6. Conduct occupational health-related
Case Study contact. training to enhance employee awareness
of protection.
Safety Training 1. Establish safety production emergency
On March 25, 2025, the Company conducted safety training for mid-level managers and above. The training plans and conduct emergency drills;
used typical cases as an entry point, focusing on legal responsibilities for safety production and the "Three The production process faces risks 2. Regularly conduct hazard identification
Musts" principle. It provided an in-depth analysis of various criminal liability cases related to safety production, such as fire and explosion, chemical and implement timely rectifications;
including failures of primary responsible persons, major accident liability offenses, and fire accident liability Production leakage, equipment failure, and Short and Increase in
operational errors, which could lead medium Operations operating 3. Use equipment that meets safety
offenses. Concurrently, it combined this with directions for optimizing corporate safety culture construction, safety risks
to safety incidents resulting in standards, and perform regular
term costs
strengthening the safety responsibility awareness and compliance management capabilities of management, casualties and property damage. inspections and maintenance;
thereby reinforcing the safety production defense line.
enhance employee safety awareness.
Opportu- Time Value Chain Potential
Total Safety Training Investment: 34,200RMB Number of Safety Training Sessions: 11 nity Type
Opportunity Description horizon
of impact
Segment
Affected
Financial
Impact
Countermeasures
Safety Training Participants (Person-Times): 4,650person-times Number of Safety Training
Participants (Individuals) 425individuals Increase investment in safety equipment
Research, develop, and introduce and facilities. Select advanced, reliable
Technolog- automated production equipment automated equipment with safety
Reduction in
Total Safety Training Hours: 11,050hours Average Safety Training
Hours per Capita: 26hours/person ical
Opportuni-
to reduce employee on-site work,
thereby enhancing safety and
long-term Operations operating
functions such as explosion-proof and
leak-proof features, tailored to the
reliability during the production costs Company's production process
ties
process. characteristics and safety requirements,
Safety Training Employee Coverage Rate: 66.82% ensuring equipment maximizes safety
while meeting production needs.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Impact, Risk and Opportunity Management 2025 Key Performance
The Company continuously improves its risk management system, comprehensively identifies potential hazard factors, and Number of Safety Emergency Drills: 7times
formulates and implements specific control measures to prevent and mitigate safety risks at the source, fully safeguarding
employee occupational health and safety.
Risk Management Process
Risk identification Identify factors that may impact employee health and safety in the workplace, including
Indicators and Targets
physical, chemical, equipment failure, and other aspects.
The Company, considering its actual production operations and compliance requirements, scientifically establishes
Risk Assessment Comprehensively evaluate identified risks to determine their probability of occurrence and occupational health and safety production management targets, continuously improves its safety management level,
potential losses. effectively prevents production safety and occupational health risks, effectively safeguards employee health and safety, and
promotes stable, high-quality corporate development.
Risk Control Develop corresponding risk control measures based on risk assessment results, such as
strengthening equipment maintenance, enhancing employee operational skills, and
improving the working environment. Occupational health and safety production management Targets 2025 Achievement
Qualitative Targets
Hazard Identification
The Company has established a Hazard Identification and Management System and regularly conducts comprehensive hazard No major or extraordinarily serious safety production incidents
identification and rectification activities. Inspections cover all production processes, focusing on key components of production No work-related fatalities or severe injuries; control minor
equipment, electrical circuits, fire protection facilities, etc., ensuring compliance with safety regulations. Simultaneously, injuries
employee operating procedures are strictly reviewed to promptly correct non-compliant behaviors, preventing safety incidents
caused by human error. No fire, explosion, or occupational disease incidents
By the end of the reporting period, the Company identified a total of 492 hazards, all of which have been rectified, achieving a No hazardous chemical leakage or acute poisoning incidents
Emergency Plans and Drills
The Company has established a Production Safety Accident Emergency Plan and set up an Emergency Command Center. The
General Manager serves as the Commander-in-Chief, coordinating the Safety-Environment Department and other functional Quantitative targets
departments to jointly manage emergency rescue command, plan optimization, emergency training and drills, and daily
safety supervision. 100% signing rate for annual safety production responsibility
agreements
Case Study 100% rate for process supervision and on-site safety
inspections
Emergency Drill for Hazardous Chemical Carbonyl Iron Leakage Environmental Incident 100% implementation rate for measures at key prevention
points
On November 12, 2025, the Company organized an emergency drill
simulating a hazardous chemical carbonyl iron leakage 100% completion rate for annual safety improvement projects
environmental incident. The drill simulated an accidental carbonyl
iron leak at the work site. Emergency response teams responded >85% certification rate for key supervised training
swiftly, strictly following the emergency plan to conduct site >90% rectification rate for routine safety hazards
cordoning, personnel evacuation, leak control, environmental
monitoring, and emergency response. This effectively tested the
practicality of the emergency plan, the operational capability of the
emergency teams, and the multi-departmental coordination level,
further enhancing the Company's emergency rescue and risk
prevention capabilities for unforeseen incidents.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Indicator Unit 2025 2025 Key Performance
Safety Production Accidents Cases 0
Occupational Hazard Factor Occupational Hazard Factor
Safety Production Investment 10,000RMB 422.28 Testing Rate: 100% Testing Compliance Rate: 100%
Safety Production Investment as % of Operating Revenue % 0.97
Work-related deaths Persons 0
Total Work-Related Injuries Persons 0 Occupational health examination
Based on the Occupational Protection Plan and Implementation Plan, the Company regularly organizes employees to undergo
occupational health examinations at the Center for Disease Control and Prevention, and regularly monitors workplace
Occupational health and safety management measures occupational hazard factors. Following examinations, an occupational health surveillance record is established for each
employee, detailing health status at different stages. This supports the "early prevention, early detection, early treatment"
mechanism, providing timely diagnosis and treatment for confirmed cases, and immediately relocating patients with severe
conditions for comprehensive treatment, effectively safeguarding employee occupational health.
Occupational Health Protection In 2025, the Company provided health check-ups for employees, covering routine examinations, specialist checks, imaging,
ultrasound, and multiple laboratory tests.
To ensure the production environment complies with national occupational health standards and requirements, and to protect
employee health and related rights, the Company has established management policies including the Occupational Hazard
Prevention Responsibility System, Occupational Hazard Warning and Notification System, Occupational Hazard Prevention,
Education, and Training System, Occupational Protective Equipment Management System, and Labor Protection Products 2025 Key Performance
Management Regulations. These policies provide a solid protective barrier for employee occupational health and consolidate
the foundation of safety production management.
Number of Special Operation Total Number of Special Operation
Occupational health management measures Personnel Holding Certificates: Personnel Required to Hold Certificates:
Special operations personnel must hold valid certifications.
Certification Rate for Special Work-Related Injury
Relevant personnel must sign an occupational health and safety commitment letter.
Provide individual labor protection products with different protective functions based on job types and working
Operation Personnel: 100 % Insurance Coverage Rate: 100%
conditions.
Work Safety Liability Insurance Number of Employees Covered by
Establish health surveillance records for employees and retain them according to regulations.
Conduct occupational health training and organize employee health check-ups.
Contribution Amount: 89,300RMB Work Safety Liability Insurance:171persons
Implement occupational hazard notification, informing employees about potential occupational hazards and Employee Health Check-up Coverage
consequences in the workplace. For positions with severe occupational hazards, prominently display warning
signs and explanations. Rate:100%
Perform maintenance and repairs on occupational hazard control facilities.
Occupational Health Training
Occupational hazard detection The Company regularly organizes occupational health and safety-specific training. Content covers occupational health
protection knowledge, occupational hazard prevention, and the proper use and maintenance of labor protection products.
The Company regularly conducts workplace monitoring and simultaneously performs occupational hazard status Through theoretical instruction and practical demonstration, the training effectively enhances employee awareness of
assessments. By deeply analyzing hazard distribution characteristics, development trends, and potential risks, these occupational health and safety and their self-protection capabilities, ensuring occupational health and operational safety
assessments provide a scientific basis for formulating targeted control measures, continuously enhancing the standardization during employment.
and refinement of the Company's occupational health management.
During the reporting period, four employees of the Company successfully completed the occupational health training program
During the reporting period, the Company engaged a third-party testing institution to conduct occupational hazard factor organized by the Ganzhou Municipal Health Commission and obtained qualification certificates.
testing and issued an occupational hazard factor testing report.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Case Study
Demonstrating Social Responsibility
Occupational Disease Prevention Knowledge Training YUEAN actively engages in rural revitalization and social welfare initiatives, focusing on key areas such as improving
education and healthcare, and assisting vulnerable groups. Through regular public donations, volunteer services, and other
On January 5, 2025, the Company organized targeted activities, the Company effectively enhances the public's sense of gain, happiness, and security, contributing concretely to
occupational disease prevention knowledge training for relevant social harmony, stability, and common prosperity.
personnel. Conducted as an interactive Q&A session, the training
focused on explaining the classification of occupational diseases,
causative factors, and preventive measures, effectively improving
employee awareness of occupational disease hazards and their
self-protection awareness.
Rural Revitalization
To thoroughly implement the decisions and deployments of the Central Committee of the Communist Party of China and the
State Council regarding consolidating achievements in poverty alleviation and effectively linking them with rural revitalization,
the Company actively responds to calls for action. Through public donations, targeted assistance, and various methods, it
continuously supports rural industrial development and the enhancement of grassroots governance, demonstrating corporate
Contractor Safety Management responsibility and its contemporary mission.
The Company has established the Contractor Safety Management Regulations, standardizing management across the entire process,
including contractor selection and access, pre-operation preparations, construction process control, inspections, and Case Study
assessments. All contractors are required to strictly adhere to the Company's HSE management regulations, implement
various safety and environmental protection measures at the worksite, and establish a clear safety responsibility structure at
all levels. This effectively prevents safety risks associated with outsourced operations and secures the Company's production Donation to the Dayu County Red Cross Society
and operational safety lines. In January 2025, responding to the "Ten Thousand Enterprises Revitalize Ten Thousand Villages" initiative, the
Company donated 113,800 RMB to the Dayu County Red Cross Society, earmarked for elderly care support in
Dongshan Village and rural revitalization efforts. The donation primarily focused on improving living conditions
for the local elderly population, while also supporting the improvement of rural infrastructure and the
Hazardous Chemicals Management development of specialized industries, concretely aiding comprehensive rural revitalization.
In accordance with relevant laws and regulations, the Company has established the Precursor Chemical Safety Management System to
strengthen the management of precursor chemicals. This system standardizes management practices across procurement,
transportation and loading/unloading, requisition, storage, and disposal phases, effectively ensuring the safety of chemicals
and related personnel.
Precursor Chemicals Management
Procurement Select qualified suppliers for procurement; procurement personnel must obtain the Safety
Data Sheet (SDS) and label from the supplier and provide them to the requisitioning
department, storage department, and Safety-Environment department.
Transportation & Must be transported by qualified carriers; necessary documentation must be presented
Loading/Unloading for transporting precursor chemicals, and relevant procedures must be completed with
the designated public security traffic department; vehicles must be equipped with safety
markings.
Storage Must be stored in dedicated warehouses or tank farms; storage methods, types, and
quantities must comply with national standards.
Requisition
Maintain a registration ledger for precursor chemicals, bound separately for record- 2025 Key Performance
keeping.
Rural Revitalization Number of Beneficiaries
Disposal Classify and store waste according to regulations, and dispose of it accordingly.
Investment Amount: 113,800RMB from Rural Revitalization: 186persons
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Social Contribution
The Company consistently fulfills its social responsibilities, engaging in public donations and caring assistance activities across
areas such as medical aid and educational support, giving back to society and conveying corporate warmth.
Case Study
Supporting the "Bole Education Aid ·
Building Dreams Together" Public Welfare Project
In May 2025, responding to the national rural revitalization and education support strategy, the Company's
Chairman, in his personal capacity, donated 50,000 RMB via Tencent Platform to the Ganzhou City Red Cross
Foundation for the "Bole Education Aid · Building Dreams Together" project, helping to improve learning
conditions for underprivileged students and enhance education quality, contributing to the development of rural
education.
Case Study
Material Donation to Dayu County People's Hospital
In December 2025, to support the 90th-anniversary celebration of Dayu
County People's Hospital, the Company donated a batch of materials
valued at 38,500 RMB, concretely supporting the development of local
medical and health services, demonstrating corporate responsibility and
commitment to improving people's livelihoods.
Case Study
College Admission Bonuses for Employees' Children
The Company has established the Regulations on Granting Rewards for
Employees' Children Admitted to Universities, setting differentiated reward
standards based on the level of the university admitted to. These bonuses
encourage diligence and perseverance among the students, showcasing
the Company's support for education. During the reporting period, the
Company distributed a total of 16,000 RMB in educational bonuses.
Public Welfare Charity Investment: 5.57 10,000 RMB
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Forward Outlook Appendix
Looking ahead, YUEAN will persist in implementing the concept of sustainable development, deeply integrating ESG principles
Indicator Index
into its corporate development strategy and overall operations. This aligns with industry green development trends and policy
directions, driving synergistic progress between the enterprise, the environment, and society. China Enterprise Reform and
Global Reporting Initiative. Development Society. Guidelines No. 14 of
Environmentally, the Company will uphold a green and low-carbon development orientation, continuously optimizing Report Section Sustainability Reporting Chinese Corporate Sustainable Shanghai Stock Exchange for
Standards (GRI Standards). Development Report Guide Self-Regulation of Listed Companies -
production and operational processes, strengthening environmental compliance management, and actively exploring Sustainability Report (Trial).
(CASS-ESG 6.0).
pathways for energy conservation, carbon reduction, and resource recycling to contribute to the "dual carbon" goals.
Socially, the Company will steadfastly fulfill its social responsibilities, enhancing supply chain collaborative governance, About this report 2-1/2-2/2-3 P1.1/P1.2 Article 14
safeguarding employee legal rights, and while focusing on technological innovation, giving back to society, fostering a
beneficial industrial ecosystem and consensus on social values. Message from the Chairman / P2.1 /
Governance-wise, the Company will continuously refine its governance system, improve the level of standardized
Sustainable Development
management, adhere to the baseline of compliant operations, value communication with stakeholders, and persistently 201-1 A2 /
Highlights in 2025
enhance ESG management effectiveness and the quality of information disclosure.
Using ESG development as a crucial lever, the Company will balance high-quality corporate development with social value About YUEAN 2-1/2-6/2-28 P3.1-P3.4 /
creation, steadily advancing its sustainable development capabilities and achieving synergistic benefits across economic,
environmental, and social dimensions. Sustainable
Development
Governance
Sustainable Communication
Development with Stakeholders 2-29 G1.3.2 Article 53
Management
of Importance 3-1/3-2/3-3 G1.1.9 Article 5
Issues
Standardized
Governance 2-9/2-10/2-27/405-1 / /
Operation
Management of
Directors' and
Senior Executives' 2-19/2-20 / /
Remuneration
Establishing
Robust Risk
Control 2-27/207-1/207-2 / /
Standardized Measures
Operation for
Enhanced Strengthening
Governance Investor
Relations 2-27/201-1/207-1 / /
Management
Adherence to
Business Ethics 2-23/2-24/2-27/205-2 G2.1.1-G2.1.3/G2.1.7 Articles 54/55/56
Adhering to
Party-Building 2-27 / /
Leadership
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2025
Report Section
Global Reporting Initiative.
Sustainability Reporting
Standards (GRI Standards).
China Enterprise Reform and
Development Society.
Chinese Corporate Sustainable
Development Report Guide
Guidelines No. 14 of
Shanghai Stock Exchange for
Self-Regulation of Listed Companies -
Feedback
(CASS-ESG 6.0). Sustainability Report (Trial).
Articles 20/21/22/23/
Climate Dear Reader,
Change Thank you very much for reading this report. We highly value and look forward to hearing your feedback. Your comments and
Response 305-2/305-4/305-5 E1.1.14/E1.1.16
suggestions are crucial for us to continuously improve the quality of our ESG information disclosure and advance our ESG
management and practices. We welcome and sincerely appreciate your valuable opinions!
Low-Carbon
Leadership for E2.1.1-E2.1.3/
Green Environmental 2-27/303-4/305-7/ E2.1.5-E2.1.7/E2.2.1/ 1. Your overall evaluation of our ESG fulfillment is:
Development Compliance 306-1/306-2/306-3/ E2.2.3/E2.2.5-E2.2.7/ Articles 29/30/31/33
Management □ Very good □ Good □ normal □ poor □ very poor
E3.3.4/E3.3.5
Resource 2-27/302-1/302-3/302-4/ E3.1.1-E3.1.3/E3.1.5/ Articles 34/35/36 2. Your overall evaluation of this report is:
Recycling 303-1/303-3/303-5 E3.2.1-E3.2.4/E3.3.2
□ Very good □ Good □ normal □ poor □ very poor
Innovation-Driven S2.1.1-S2.1.7/
Development 203-2 Articles 41/42
S2.1.9-S2.1.12
Ensuring
Innovation-
Reliable 2-27/416-2 S3.3.1-S3.3.4/S3.3.6 Articles 44/47
Driven Value Quality □ Very good □ Good □ normal □ poor □ very poor
Enhancement
Responsible
Supply Chain 2-27/308-1/414-1 S3.1.1-S3.1.4 Articles 44/45
Data Security □ Very good □ Good □ normal □ poor □ very poor
Protection 2-27 S3.4.1-S3.4.3 Article 48
Protection of 2-7/2-23/2-27/2-30/ 5. How do you think we are doing in terms of environment, safety and occupational health?
Employee Rights
S4.1.1/S4.1.3-S4.1.9/
and Interests S4.1.11-S4.1.12 □ Very good □ Good □ normal □ poor □ very poor
Supporting
Fulfilling Employee 2-27/404-1/404-2 S4.3.1-S4.3.6 Article 50 6. How do you think we are doing in terms of employee responsibility?
Responsibilities Development
for Shared □ Very good □ Good □ normal □ poor □ very poor
Social Value
Occupational
Health and S4.2.1-S4.2.6/S4.2.8 Article 50
Safety 403-6/403-7/403-8/
Demonstrating
Social / S1.1.1-S1.1.3/S1.2.1-S1.2.3 Articles 38/40
Responsibility 8. Do you have any comments and suggestions on our ESG implementation and this report?
Forward Outlook / A1 /
You can contact us via:
Indicator Index / A3 Article 57
Appendix Email: stock@YUEANmetal.com Tel: 0797-8705008
Feedback / A6 /
Address: JIANGXI YUEAN ADVANCED MATERIALS CO.,LTD., Xinhua Industrial Park, Dayu County, Ganzhou City, Jiangxi Province
