stock code: 688268
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (ESG) REPORT
Guangdong Huate Gas Co., Ltd.
Guangdong Huate Gas Co., Ltd.
Contact phone number: 0757-81008813
Mailing address: East side of Wentouling Foot, Jinfeng Road, Shunfeng West Si2H6
Village, Shuihe, Nanhai District, Foshan City, Guangdong Province
URL: http://www.huategas.com GeH4
Xe C2F6
Kr
HUATE GAS
CONTENTS
About this Report 01 STANDARDIZED OPERATION, GREEN DEVELOPMENT,
CONSOLIDATING THE SAFEGUARDING LUCID WATERS
FOUNDATION OF INTEGRITY AND LUSH MOUNTAINS
Message from the Chairman 03
Clear Rights and Responsibilities, Scientific Checks and Environmental Compliance, Ecological Harmony 27
Annual Development Overview 05
Balances 13 Low Carbon Actions, Climate Response 39
Corporate Culture 05
ESG Integration, Sustainable Value 17 Efficient Utilization, Circular Development 43
Major Honors 05
Standardized Operation, Risk Prevention 22 Green Operation, Cultural Cultivation 46
Key Performance 06
Anti-Corruption and Integrity Promotion, Fairness and
About Huate Gas 07 Justice 24
Company Profile 07
Business Overview 07
Development History 09 INNOVATION DRIVEN, HARMONIOUS COEXISTENCE,
ACHIEVING VALUE CREATING A BETTER LIFE
GROWTH TOGETHER
Appendix 93
Key Performance Table 93 Innovation Driven, Leading Development 49 Standardized Employment, Fulfilling Responsibilities 73
Indicator Index 103 Collaborative Win-Win, Resilient Supply Chain Respecting Rights and Interests, Promoting Fairness 75
Feedback Form 106 Assurance 54 Empowering Growth, Sharing the Future 78
Independent Assurance Statement 107 Pursuit of Excellence, Striving for Perfection 60 Safeguarding Health, Creating a Secure Environment 82
Dedicated Service, Customer Satisfaction 65 Practicing Responsibility, Giving Back to Society 92
Information Protection, Safeguarding Assets 68
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
About this Report
Appellation Description
Report Description In this report, for the convenience of expression and reading, Guangdong Huate Gas Co., Ltd. is referred to as“Huate Gas”,“the
Company” or “we”. Subsidiaries are referred to by their abbreviations according to the specific context as shown in the table
This report is the 4th Environmental, Social and Governance (ESG) Report of Guangdong Huate Gas Co., Ltd. The report fol- below.
lows the principles of objectivity, standardization, transparency and comprehensiveness, and provides a detailed disclosure
of the practical measures adopted by Huate Gas in environmental, social and governance aspects as well as the achieve-
Abbreviation of Company Full Name of Company
ments obtained.
Huate Gas, Company or we Guangdong Huate Gas Co., Ltd.
Time Range
Southern China Special Gas Institute Guangdong Southern China Special Gas Institute Co., Ltd.
This report is an annual report covering the period from January 1, 2025 to December 31, 2025. In order to enhance the com-
parative and forward-looking nature of this report, certain content has been extended.
Xinhui Special Gas Institute JiangMen City Xinhui Special Gas Institute Co., Ltd.
Scope of the Report Zhongshan Huaxin Zhongshan Huaxin Gas Co., Ltd.
This report takes “Guangdong Huate Gas Co., Ltd.” as the main entity. Unless otherwise specified, the organizational scope
Suining County United Chemical Suining County United Chemical Co., Ltd.
of this report covers Guangdong Huate Gas Co., Ltd. and its subsidiaries (for details, please refer to the 2025 annual report of
Guangdong Huate Gas Co., Ltd.).
Jiangxi Huate Jiangxi Huate Electronic Chemical Co., Ltd.
Preparation Basis Asia Pacific Gas Asia Pacific Gas Industry Co., Ltd.
Guidelines No. 14 for Self-Regulation of Listed Companies—Sustainability Report (Trial) by Shanghai Stock Exchange
Chenzhou Xiangneng Chenzhou Xiangneng Semiconductor Gas Co., Ltd.
Guidelines No. 13 for Self-Regulatory of Science and Technology Innovation Board Listed Companies——Sustainability
Report Preparation by Shanghai Stock Exchange
Dongguan Gaoneng Dongguan Gaoneng Industrial Gas Co., Ltd.
Corporate Sustainability Disclosure Standards – Basic Standards (Trial) by the Ministry of Finance of the People’s Re-
public of China
United Nations 2030 Sustainable Development Goals (SDGs)
Access to the Report
Sustainability Reporting Standards (GRI Standards) by Global Reporting Initiative
In order to practice the concept of low carbon environmental protection and sustainable development, this report can be
read online or downloaded in electronic form on the website of the Shanghai Stock Exchange (www.sse.com.cn) or the web-
Sources of Information and Reliability Assurance site of Guangdong Huate Gas Co., Ltd. (http://www.huategas.com).
All information and data cited in this report are derived from official documents and financial reports of Huate Gas, covering
If you have any feedback or suggestions, please contact us through the following methods:
internal data and publicly disclosed information from various departments and operating units of the Company, and have
Mailing address: East side of Wentoulingjiao, Fengxi Village, Heshun, Lishui Town, Nanhai District, Foshan City
been compiled, summarized and reviewed by the Company. At the same time, to ensure the completeness and continuity of
Contact number: 0757-81008813
the presentation, the Company has reviewed and extended certain content under specific topics. Unless otherwise specified,
Company website: http://www.huategas.com
monetary amounts are denominated in CNY. In case of any inconsistency between financial data and the annual report, the
annual report shall prevail.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Message from the Chairman
At present, the global semiconductor industry is undergoing accelerated restructuring, and the green and low waste reached 100%. By promoting water recycling, energy saving technological upgrades, and green office
carbon transition is gaining strong momentum. As the “blood of chips,” specialty gases are assuming an in- practices, the Company has integrated low carbon concepts into the entire operational process, taking con-
creasingly prominent strategic position. As the first company in China’s gas industry listed on the STAR Market crete actions to safeguard blue skies and white clouds.
and a pioneer in the localization of specialty gases, Huate Gas has always adhered to its mission of “providing
Innovation driven to achieve value growth. Innovation is the foundation of Huate Gas. The Company focus-
the best platform for employee development, enhancing the competitiveness of China’s gas industry, and cre-
es on breakthroughs in core technologies of electronic specialty gases. Multiple self-developed lithography
ating maximum value for customers and society.” While overcoming “bottleneck” technologies and ensuring
gas products have obtained certification from ASML in the Netherlands and GIGAPHOTON in Japan, making
the security of the industrial chain, the Company has deeply integrated the concept of sustainable develop-
the Company the only gas enterprise in China to have multiple rare mixed lithography gases simultaneously
ment into its corporate DNA. In 2025, with standardized governance as the foundation, green development as
certified by both international leaders. Some products have already entered the world’s most advanced 5nm
the guiding principle, innovation driven growth as the core, and harmonious coexistence as the aspiration, the
process. The Company has accumulated 270 authorized patents and led or participated in the formulation of
Company has made steady progress on the path of sustainable development.
Standardized governance to strengthen the foundation of integrity. We firmly believe that only through ogies and contributing Huate’s strength to the independent and controllable semiconductor industry chain.
standardization and transparency can long term stability be achieved. The Company has continuously opti-
Harmonious coexistence to create a better life together. Employees are the most valuable asset of the
mized its modern corporate governance structure with the Board of Directors at the core. Independent direc-
Company. We adhere to standardized employment, with a labor contract signing rate of 100% and a social
tors account for 37.5%, and female directors account for 25%, ensuring scientific decision making and effective
insurance coverage rate of 100%. During the reporting period, no incidents of labor discrimination or child
supervision. During the reporting period, the Company comprehensively reviewed, revised, and improved 28
labor misuse occurred. We strictly uphold the bottom line of occupational health and safety, with safety pro-
systems including “Articles of Association,” “Rules of Procedure for Shareholders’ Meetings,” and “Rules of
duction investment reaching CNY 16.52 million, zero new occupational disease cases, and a rectification rate
Procedure for the Board of Directors.” At the same time, the Company newly elected employee representative
of 100% for safety hazards. We emphasize employee development by establishing a dual channel career
directors, orderly abolished the Supervisory Board, and fully incorporated its core supervisory functions into the
development system, enabling employees to fully utilize their talents in both professional and management
Audit Committee of the Board of Directors, forming a more centralized and efficient supervision mechanism.
pathways and grow together with the Company. At the same time, the Company actively participates in
The Company released 4 periodic reports and 71 interim announcements and was rated Grade A in the infor-
public welfare, with charitable donations of nearly CNY 500,000 and more than 100 employee volunteer par-
mation disclosure evaluation of listed companies on the Shanghai Stock Exchange for 2024 to 2025. We strictly
ticipations, giving back to society through concrete actions.
adhere to compliance requirements, maintain zero tolerance for corruption, and no major violations of integrity
in operations occurred, thereby earning market trust through integrity. Looking ahead, Huate Gas will continue to uphold its original aspiration, taking innovation as the engine and
responsibility as the foundation, and accelerating its progress on the track of green development. We are
Green development to safeguard lucid waters and lush mountains. As a leading enterprise in the field of
willing to work together with all stakeholders to jointly create a cleaner, more efficient, and more prosperous
electronic specialty gases, the Company is fully aware of its environmental protection responsibilities. During
future.
the reporting period, the Company invested CNY 1.02 million in environmental protection. The compliance rate
of pollutant monitoring, the synchronous operation rate of environmental protection facilities, and the imple- Sincere thanks for your continued support and trust!
mentation rate of the “three simultaneities” for environmental protection in construction projects all remained
at 100%. The Company actively responds to climate change, with greenhouse gas emission intensity decreas-
ing by 4.3% year on year. The compliant disposal rate of both general industrial solid waste and hazardous Shi Sihui, Chairman of Huate Gas
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Key Performance
Annual Development Overview
Economic performance
Corporate Culture Operating revenue Total profit Total tax payment
CNY 1,419 million CNY 161 million CNY 88 million
Corporate vision Devoted to the R&D and application of gas and become a leader in the gas industry.
Basic earnings per share Total assets Social contribution value per share
Flourish follows harmony, Prosperous follows forging ahead, Rich follows
Corporate spirit
Hard-working, Strength follows adaptation.
CNY 1.1 CNY 3,583 million CNY 3.4
Core cul-
Business philosophy Improve with customers together.
ture
Environmental performance
Values Identification, responsibility, equality, safety, environmental protection.
Pollutant monitoring Synchronous operation rate of Implementation rate of environmental protection
Provide the best platform for employee development, enhance competitiveness for compliance rate environmental protection facilities “Three Simultaneities” for construction projects
Mission
China's gas industry, and create maximum value for customers and society.
Total environmental protection Total Energy Consumption
Major Honors
Total water consumption
investment
CNY 1.02 million
Contribution Award
First China “ESG And Corporate Value Growth” Social performance
National Gas Standardization Technical
Summit Forum
Committee
Total number of Labor contract Social insurance Total investment in
ESG Rating Certificate Grade A employees signing rate coverage rate employee training
Greater Bay Area ESG Disclosure Excellence List
China Chengxin Green Finance
International Co., Ltd.
Benshi Consulting (Shenzhen) Co., Ltd. 1,243 persons 100% 100% CNY 313,800
Individual Award——Semiconductor Talent Product recall incidents
Economic Contribution Enterprise
resolution rate
Organizing Committee of Bay Area training
Foshan Nanhai District Economic CNY
Semiconductor Industry Ecology Expo
Promotion Bureau 191,283 hours 100%
Sixth Excellent Supplier Governance performance
Bull Award
SMIC Integrated Circuit (Ningbo) Co., Ltd.
China Securities Journal
Number of shareholders’ Number of board of Proportion of female Proportion of independent
Strategic Material Cooperation Supplier meetings held directors’ meetings held directors on the board directors on the board
Excellent Supplier
Silan Semiconductor Manufacturing Division
Zhongtu Technology
Headquarters
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
About
Huate Gas
Application fields:
High-tech manufacturing fields with the semiconductor industry as the core, specifically covering indus-
tries such as integrated circuits, new display panels, photovoltaic new energy and optical fiber and cable,
as well as livelihood and health fields represented by food and medical sectors. In the core semiconduc-
Company Profile tor industry, the Company strategically focuses on achieving import substitution of electronic specialty
gases and concentrates on high-end product research and development around semiconductor thin film
processes, comprehensively covering gas materials required for key processes including dielectric layer or
Guangdong Huate Gas Co., Ltd. was established in 1999 and was listed on the Science and Technology Innovation Board of
metal etching, deposition, ion implantation and chamber cleaning.
the Shanghai Stock Exchange in December 2019, with the stock abbreviation “Huate Gas” (stock code: 688268.SH). It is the
first enterprise in Foshan to be listed on the Science and Technology Innovation Board and the first enterprise in China’s gas
industry to be listed on the Science and Technology Innovation Board.
General Industrial Gases
Huate Gas is a high-tech enterprise focusing on the research and development, production and sales of gas products. The
Company takes promoting the localization of specialty gases as its core mission and is committed to breaking the constraints Main products:
of gas materials in high end fields such as very large-scale integrated circuits and new display panels. It has established a Oxygen, nitrogen, argon, industrial ammonia, carbon dioxide and others.
comprehensive layout with the research and development and sales of specialty gases as the focus, supplemented by bulk
industrial gases and related gas equipment and engineering businesses, aiming to provide customers with one stop gas ap- Application scenarios:
plication solutions. Our products and services are widely applied in multiple key fields such as semiconductors, medical health Oxygen: combustion supporting in metal smelting and chemical oxidant;
and environmental energy. With stable product quality, excellent technical performance and high-quality customer services, Nitrogen: protective gas and annealing atmosphere (used in chemical, machinery and home appliance
the Company has gained widespread trust in the market and established a good industry brand image. industries);
Argon: welding shielding gas and protective gas for photovoltaic monocrystalline or polycrystalline sili-
con production;
Industrial ammonia: denitrification in power plants, monosodium glutamate production and metal pro-
Business Overview cessing, and can also be purified into high purity ammonia.
The Company takes the research and development, production and sales of specialty gases as the core, supplemented by
general industrial gases, gas equipment and engineering businesses, and is committed to building one stop service capabili- Gas Equipment and Engineering
ties to provide global customers with comprehensive gas application solutions.
Equipment products:
Specialty Gases Cryogenic insulated gas cylinders, small aluminum cylinders, vaporizers, skid mounted units and cryogen-
ic pressure vessels;
Main products:
Including cleaning and etching gases, rare mixed lithography gases, epitaxy and deposition gases, doping Engineering services:
gases, high purity carrier gases and protective gases, medical gases, standard gases, laser gases, food Design, installation and maintenance of gas supply systems, especially customized high purity clean gas
gases, electro optical source gases, etc. supply systems for specialty gas customers to ensure purity and stability of gases during use.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Development History 2015 2020 2024
The Company and Our products en- Recognized as “2023 Na-
Guangdong Indus- tered SK Hynix. tional Advanced Unit for
t r i a l Te c h n o l o g y Gas Standardization” and
Research Institute “Top 10 Enterprises in Elec-
The rare gas products were Our products successfully A subsidiary was established a joint tronic Chemical Materials
developed and successfully entered the Taiwan semi- established in laboratory. Our products en- Products passed Samsung Industry of the 5th China
applied to downstream. conductor market. Hong Kong. tered YMTC. (Korea) 5 nanometer certifi- Electronic Materials Indus-
The Company was cation. try”.
recognized as a
provincial level en- Awarded the title of “Top 20 Awarded “2024 Foshan
terprise technology Listed Companies in Respect Nanhai District Govern-
center in Guangdong of Corporate Governance ment Quality Award”.
Formally entered the re- Province. in the Greater Bay Area in
search and development 2022”.
Southern China The Company was Undertook the project“Specialty
and application of elec-
Special Gas Insti- recognized as a high- Gases for Flat Panel Displays”
tronic special gases and
tute (the prede- tech enterprise. under the Guangdong Province
the products entered
cessor of Huate strategic emerging industry
Gas) was estab- regional cluster development
factories for the first
lished. pilot (new generation display
time.
technology).
Huate Gas was listed Awarded the national
on the Science and level specialized, refined,
Technology Innovation distinctive and innovative
Board. “Little Giant” enterprise
title.
Awarded the National
Awarded the China Patent Intellectual Property Our products en- Awarded “Guangdong Awarded “2025 Na-
Award Excellence Award Advantage Enterprise. tered Infineon (Ger- Province Specialized tional Gas Standard-
for “A Purification Method many). and Refined Small ization Contribution
for Hexafluoroethane”. Awarded the 4th Award” and “2025
Four lithography gas and Medium Sized
The research and Successfully developed The Company partici- Undertook the national science and technolo- High-Tech Enterprise Best A Share ESG
Four lithography gas products passed Enterprises”, “Guangdong
development of the excimer laser gas pated in the Guangdong gy major project “Very Large-Scale Integrated Practice Award”.
Certification.
mixed specialty independently and Province Ministry of Edu- Circuit Manufacturing Equipment and Com- products independently certification by Province Innovative
The Company was Small and Medium Sized Recognized as
gases was start- realized the import cation industry university plete Process”, specifically the “High Purity developed by the Company Gigaphoton Inc. in
ed and launched substitution of clinical research cooperation pro- Electronic Gas Research and Development a w a r d e d “ To p 1 0 Enterprises”, “Guangdong “Annual Outstanding
passed certification by Japan.
Ar+CO2 mixed gas, medical gases. ject, focusing on specialty And Industrialization” (abbreviated as: 02 Electronic Chemical ESG Demonstration
ASML, the world’s largest Province Patent Award
becoming the first gases applied in the semi- project), responsible for the project “Research The Company was Enterprise”.
lithography equipment Material Enterprises Excellence Award”,
domestically pro- conductor field. And Pilot Scale Testing Of High Purity Trifluo- awarded “Top 10
supplier. in China’s Electronic “Guangdong Province
duced specialty romethane”.
Electronic Chemical
gas for container Materials Industry”at Manufacturing Individual
The 20th anniversary of Huate Gas. The Company was Material Enterprises
use. the 3rd (2019) China Champion”.
awarded“Top 10 Electronic in China’s Electronic
The Company established the Foshan Electronic Materials
Chemical Material Materials Industry”
Electronic Gas Research and Development Industry.
Enterprises in China’s at the 4th (2021)
Center.
Foshan Huate Our products entered Electronic Materials China Electronic
Gas Co., Ltd. was Samsung in Korea. The Company’s fluorocarbon products Industry” at the 2nd (2017) Materials Industry.
established.
Our products entered entered the 8-inch production line of TSMC China Electronic Materials
TSMC in Singapore. (Taiwan). Industry.
Our products entered SMIC.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Standardized Operation,
Consolidating the Foundation of
Integrity
Huate Gas is committed to building a governance system with clear rights
and responsibilities, efficient operation and strong supervision. Through
scientific checks and balances, it ensures transparent and fair decision
making, integrates ESG concepts into daily operations to promote long-term
value creation, strictly adheres to compliance bottom lines to strengthen risk
control, and consolidates the foundation of business ethics through integrity-
based operations. The Company pursues development in a steady manner and
promotes improvement through standardization, laying a solid foundation for
sustainable development with pragmatic governance practices.
Topics covered in this section United Nations Sustainable Development Goals (SDGs) corresponding to this section
Protection of shareholders’ rights and interests, standardized corporate governance, anti-commercial bribery and anti-corrup-
tion, anti-unfair competition, tax compliance, risk management, due diligence, stakeholder communication, ESG governance
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Strengthening Board of Directors Development
Clear Rights and Responsibilities, Scientific Checks and Balances
Improving Governance Structure Board Diversity
Huate Gas attaches great importance to the diversified composition and professional capabilities of the board of directors
Huate Gas continuously optimizes and improves the corporate governance structure, establishing an efficient governance
and conducts director nomination and election in strict accordance with the Articles of Association and other systems, ad-
system with the shareholders’ meeting as the power core, the board of directors as the decision-making center, senior man-
hering to the principles of “professional suitability, reasonable structure, independence and fairness”. The Company compre-
agement as the executive body, and the Audit Committee performing supervisory functions in accordance with the law. This
hensively evaluates candidates’ professional backgrounds, industry experience and performance capabilities to match the
ensures scientific decision making, strong execution and effective supervision, providing a solid governance foundation for
governance needs of the Company in semiconductor materials and international operations.
the Company’s steady development in high tech fields such as semiconductors and new energy.
The board of directors of the Company consists of 8 members, including 4 non independent directors, 3 independent direc-
The board of directors of the Company has four special committees, namely the strategy committee, the nomination com-
tors and 1 employee representative director, ensuring diversity of sources and perspectives from the structure. At present,
mittee, the Remuneration and Appraisal Committee, and the Audit Committee. Each special committee is accountable to the
the board of directors has formed a diversified and complementary structure of external experts, shareholder representatives
board of directors and performs its duties in a standardized manner within the scope authorized by the board of directors in
and employee representatives, with deep integration of technology, finance, law and management, effectively enhancing the
strict accordance with the Articles of Association of Guangdong Huate Gas Co., Ltd. and relevant rules of procedure. They fo-
Company’s decision making capabilities on complex issues such as electronic specialty gas research and development, global
cus on key areas such as strategic planning, talent selection, incentive mechanisms and financial supervision, providing pro-
supply chain management and ESG strategy, and strengthening the protection of the interests of minority shareholders and
fessional and systematic decision support for the board of directors. Among them, the Audit Committee is composed mainly
employees.
of independent directors and is convened by an accounting professional, fully undertaking the original functions of the board
of supervisors and strengthening internal control supervision and risk prevention capabilities.
Board Independence
Huate Gas strictly complies with laws and regulations such as the Company Law of the People’s Republic of China and the
Securities Law of the People’s Republic of China, as well as the regulatory requirements of the Science and Technology In-
The independence of the board of directors is the cornerstone for the Company to achieve scientific decision making, ef-
novation Board, and continuously improves the corporate governance system. In 2025, the Company systematically revised
fectively prevent governance risks and effectively protect the legitimate rights and interests of all shareholders, especially
the Articles of Association of Guangdong Huate Gas Co., Ltd., officially abolishing the board of supervisors and establishing
minority shareholders. The Company has formulated and continuously improved systems such as the Articles of Association,
a new supervisory model in which the Audit Committee replaces the board of supervisors. At the same time, the Company
the Working System for Independent Directors and the Detailed Rules for the Work of Special Committees of the Board of Di-
formulated or revised 28 governance systems, including the Rules of Procedure for the Board Of Directors, the Decision-Mak-
rectors, providing clear institutional basis and operational norms for independent directors to perform their duties in accord-
ing System for Major Transactions, the Management System for Related Party Transactions and the Management System for
ance with the law, make independent judgments and conduct effective supervision. The board of directors of the Company
Information Disclosure Affairs, further clarifying the boundaries of rights and responsibilities of the shareholders’ meeting, the
consists of 8 directors, including 3 independent directors, accounting for 37.5%.
board of directors, the chairman and the management, optimizing the authorization and approval mechanism, and improving
the standardization and stability of governance operations. Proportion of
Independent Non independent Whether independent directors
Special Committee independent
directors (persons) directors (persons) serve as chair
Key Performance directors
Awarded honors such as “Top 20 Greater Bay Area Listed Companies——Corporate Governance” and “Top 20 Strategy Committee 2 3 40.0% No
Greater Bay Area Listed Companies——Green Governance”.
Audit Committee 2 1 66.67% Yes
Corporate governance structure of Huate Gas
Shareholders’ meeting Nomination Committee 2 1 66.67% Yes
Remuneration and
Board of directors Appraisal Committee
Remuneration and Appraisal
Strategy Committee Nomination Committee Audit Committee
Committee
Management
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Optimizing Investor Relations Management
Communication Channels Category Quantity
Information Disclosure
Shares and market value management 1
The Company strictly complies with the Securities Law of the People’s Republic of China, the Administrative Measures for In-
formation Disclosure of Listed Companies and the relevant rules of the Science and Technology Innovation Board, adheres to
Major matters 2
the principles of “truthfulness, accuracy, completeness, timeliness and fairness” in information disclosure, and eliminates se-
lective disclosure or insider trading. The Company has formulated the Management System for Information Disclosure Affairs,
Refinancing 2
clearly defining internal approval procedures. Major matters are required to undergo deliberation procedures of the board
of directors or the shareholders’ meeting. For matters subject to deferred or exempted disclosure, a mechanism of “case by Mergers and acquisitions and
SSE E-interactive Platform 1
case review, strict approval and full process traceability” is implemented. During the reporting period, the Company had no restructuring
violations of information disclosure or regulatory warnings. All periodic reports and ad hoc announcements were released on
Media and investor relations 2
time, ensuring that all investors have equal access to information and effectively safeguarding their right to know and right
to participate. At the same time, the Company was rated Grade A in the information disclosure evaluation of listed compa-
Periodic reports and profit distribution 2
nies on the Shanghai Stock Exchange for 2024 to 2025.
Others 10
Key Performance
Note: The classification of questions and answers on the SSE E-interactive Platform is summarized based on the content of responses. Some re-
During the reporting period, the Company disclosed 4 periodic reports and 71 ad hoc reports. sponses involve multiple categories and have been classified and presented accordingly.
Investor Communication Key Performance
The Company has established the Investor Relations Management System, clarifying an investor communication mechanism
led by the Secretary to the Board of Directors and executed by the Securities Department. Through multiple channels such During the reporting period, the Company organized
tutional investor research visits, and responded to 48 investor inquiries on the “SSE E-interactive” Platform, with a
as periodic reports, the SSE E-interactive Platform, the investor relations section on the Company’s official website, and re-
response rate of 100%.
ception of institutional research visits, the Company maintains regular communication with various investors in a proactive,
equitable, and efficient manner on topics including the Company’s basic profile, production and operation, and industry con-
ditions.
Communication Channels Category Quantity
Earnings briefing Overall situation 3 Protecting Shareholders’ Rights and Interests
Investor reception day Overall situation 1 Huate Gas has always been committed to creating long-term and stable value returns for shareholders. Adhering to the
concept of rewarding shareholders and sharing development achievements, the Company has reviewed and approved the
Finance and accounting 1 Dividend Return Plan for Shareholders for The Next Three Years (2025-2027), establishing a clear and binding framework for
dividend policies during the reporting period and the following two years. The Company has formulated the 2025 profit distri-
Company basic status 15 bution plan: it plans to distribute a cash dividend of CNY 5.0 (tax inclusive) for every 10 shares to all shareholders, with a total
planned cash dividend of CNY 59,804,754.00 (tax inclusive). The dividend amount accounts for 44.18% of the net profit at-
SSE E-interactive Platform Production and operation 19 tributable to shareholders of the listed company in the consolidated financial statements for 2025. The Company will adhere
to the concept of long term value growth, maintain the continuity, stability and long term sustainability of the cash dividend
Industry situation 11 policy, strictly standardize the entire process of dividend decision making, continuously enhance the transparency and credi-
bility of dividend distribution, and on the basis of strict compliance, continuously optimize the shareholder return mechanism,
consolidate the long term value creation system, and enable all investors to fully share the achievements of high quality de-
Shareholders and changes in equity 4
velopment and industrial upgrading.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
ESG Integration, Sustainable Value Stakeholders Topics of interest Communication and response
Management System
Environmental protection Government communication
Huate Gas follows relevant laws and regulations such as the Guidelines No. 14 for Self-Regulation of Listed Companies— Energy saving and carbon reduction meetings
Sustainability Report (Trial) by Shanghai Stock Exchange, continuously improves the ESG governance structure and operation Water resource management Periodic reports or announcements
mechanism, and strengthens the supervision and management of ESG matters by the board of directors. Circular economy Daily communication and reporting
Work safety Training activities for listed
Governance Organizational Employee rights and interests companies
Responsibilities Government and regulatory agencies
role body Business ethics Environmental management
Data protection and privacy Treatment of three wastes
Responsible for formulating the overall ESG strategy and medium- and long-term Public welfare Green office
Decision- plans of the Company
Board of directors
making level Comprehensively evaluating ESG related risks and potential opportunities
Approving the Company’s ESG report
The securities department serves as the daily liaison body for ESG related Environmental protection
matters. It is responsible for formulating ESG system documents, collecting and Corporate governance
compiling ESG information of the Company, preparing ESG reports and related Shareholders’ meeting
Coordination Economic performance
ESG working group documents, communicating with third party professional institutions, organizing Periodic reports and ad hoc reports
level Sustainable development
ESG business training, tracking ESG policy requirements and trends, summarizing Disclosure of progress of major
Risk management
issues and achievements in ESG work, and reporting ESG work progress to the projects
Information disclosure
board of directors in a timely manner Investor communication
Business ethics
Investors/shareholders Industry university research
Data protection and privacy
Various departments and subsidiaries of the Company are the executing entities investment
Research and development
of ESG work. They undertake primary responsibilities within their respective
innovation
Various functional scopes of duties, implement ESG tasks in accordance with the plan of the
Execution
departments and Company and regularly report the execution status, and timely submit ESG
level
subsidiaries information.
Responsible for statistics and compilation of ESG work content and results, and
reporting to the ESG working group for information disclosure. Employee representative congress
Employee symposium
Corporate governance Suggestion box
Work safety Employee satisfaction survey
Key Performance
Employee rights and interests Corporate culture activities
Data protection and privacy Proposal management
Awarded honors such as“2025 Best A Share ESG Practice Award”,“ESG Rating Certificate Grade A”and“Greater Employees
Regular training
Bay Area ESG Disclosure Excellence List”.
WeChat official account
Stakeholder Communication Corporate governance Technical exchanges and research
Business ethics and development cooperation
The Company takes the needs and concerns of stakeholders as the core, identifies six key groups, and actively responds to Supply chain management Email and telephone
the demands and expectations of stakeholders. Suppliers
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Materiality Identification Results of Huate Gas
Stakeholders Topics of interest Communication and response
Materiality
Dimension Issue
description
Corporate governance
Environmental compliance management Double materiality
Sustainable development Factory visits
Data protection and privacy Customer satisfaction surveys Energy utilization Impact materiality
Business ethics Customer feedback
Climate change response Double materiality
Customers Product quality Email and telephone
Supply chain management Water resource utilization Impact materiality
Pollutant emissions Impact materiality
Environmental protection
Work safety Public welfare activities E Ecosystem and biodiversity protection Impact materiality
Employee rights and interests Community supervision Circular economy Impact materiality
Public welfare
Community Waste treatment Impact materiality
Protection of employees’ lawful rights and interests Impact materiality
Employee training and development Impact materiality
Materiality Issue Analysis
Occupational health and safety Double materiality
The Company strictly follows the requirements of the Guidelines No. 14 for Self-Regulation of Listed Companies—Sustainabil-
ity Report (Trial) by Shanghai Stock Exchange, and in combination with industry characteristics and its own operational fea- Research and development and innovation Double materiality
tures, conducts a comprehensive and in-depth dual materiality assessment of sustainable development issues.
Product quality and safety Double materiality
Protection of customer rights and interests Impact materiality
Materiality Issue Analysis Process
S Information security and privacy protection Impact materiality
Identification of impacts, risks Responsible supply chain management Double materiality
Policy and regulatory Company business Industry best practice
and opportunities faced by
benchmarking research model analysis benchmarking Equal treatment of small and medium sized enterprises Relevance
stakeholders and the Company
Social contribution Relevance
Protection of shareholders’ rights and interests Impact materiality
Referring to the Guidelines No. 14 for Self-Regulation of Listed Companies—Sustainability Report (Trial) by Shanghai Stock
Standardized corporate governance Impact materiality
Exchange, the Global Reporting Initiative GRI, the United Nations Sustainable Development Goals SDGs, as well as relevant
topics in domestic and international peer industries, the Company has established a sustainability related topic library. Anti-commercial bribery and anti-corruption Impact materiality
Anti-unfair competition Impact materiality
Tax compliance Impact materiality
External stakeholder research Internal stakeholder research
Risk management Impact materiality
G
Due diligence Relevance
Stakeholder communication Relevance
Materiality issues
ESG governance Relevance
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
ESG Material Topic Assessment Results of Huate Gas
Standardized Operation, Risk Prevention
Compliance Management System
Huate Gas always regards compliant operation as the bottom line of enterprise operations, takes national laws and regula-
Importance of Impact on the Company
support and culture guarantee
Continuously improving the standard- Strengthening organizational re- The Audit Committee under the board
ization of institutional processes, a silience, establishing a risk assess- of directors coordinates compliance
finance, operations and information covering all employees, setting up dit Department, as a standing exec-
disclosure has been established, clar- an internal reporting mechanism, utive body, independently carries out
ifying compliance responsibilities at all encouraging employees to supervise supervision and reports directly to the
the compliance culture.
Internal Risk Management
Importance of Financial Impact on the Company
The Company adheres to the internal control system as the core approach, establishing a closed loop management mechanism
Both Financially Material and Impact Material Financially Material but Not Impact Material of “risk early warning, process monitoring and effectiveness evaluation” to effectively identify and resolve operational risks.
Impact Material but Not Financially Material Neither Financially Material nor Impact Material
● Environmental Compli- ● Protection of Employees’ Legitimate ● Protection of Shareholder The Audit Department regularly conducts special audits, focusing on fund security, asset
Supervision
ance Management Rights and Interests Rights and Interests preservation, authenticity of financial reports and operational efficiency, and collects risk
mechanism
clues through internal reporting channels.
● Energy Utilization ● Employee Training and DevelopmentInterests ● Standardized Corporate
● Occupational Health and Safety Governance
● Response to Climate Change
● Research and Development and Innovation ● Anti Commercial Bribery and
● Water Resource Utilization During the reporting period, the Company continued to engage a third-party accounting firm to
Anti-Corruption
● Product Quality and Safety conduct an independent evaluation of the effectiveness of internal control and issued the Inter- External
● Pollutant Emissions
● Anti-Unfair Competition nal Control Audit Report, ensuring the continuous effectiveness of the internal control system. assurance
● Protection of Customer Rights and Interests
● Ecological Protection and Biodi-
● Information Security and Privacy Protection ● Tax Compliance
versity
● Responsible Supply Chain Management ● Risk Management
● Circular Economy
● Equal Treatment of Small and Medium ● Due Diligence
● Waste Treatment Sized Enterprises Key Performance
● Stakeholder Communication
● Social ContributionEnterprises
● ESG Governance
During the reporting period, no major internal control defects or major losses caused by internal control failure occurred.
● Rural Revitalization
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Related Party Transaction Management
Anti-Corruption and Integrity Promotion, Fairness and Justice
The Company always adheres to the principles of fair pricing, lawful procedures and timely disclosure. In accordance with the
Company Law, the Securities Law, the Accounting Standards for Business Enterprises No. 36——Related Party Disclosures
Anti-Corruption and Commercial Bribery
and the Articles of Association, it has formulated and strictly implemented the Decision-Making System for Related Party
Transactions.
Huate Gas has established a comprehensive integrity governance mechanism to regulate employees’ business conduct and
ethical standards. This mechanism clearly stipulates that funds and assets must be used legally and properly, prohibits un-
Decision- All related party transactions must be recognized in advance by independent directors and submitted
ethical or illegal business competition, and strictly forbids employees from accepting illegal remuneration or bribes. At the
making to the board of directors or the shareholders’ meeting for deliberation. Related directors and share-
same time, the Company has formulated the Measures for Reporting Rewards, encouraging employees to report unethical
mechanism holders strictly abstain from voting.
behavior and committing to provide identity protection or rewards, providing strong support for creating a fair, just and integ-
rity based internal corporate environment.
In accordance with the regulatory requirements of the Science and Technology Innovation Board,
Information
related party relationships and transaction details are fully disclosed in periodic reports and ad hoc
disclosure Reporting Channels
announcements to ensure that all investors have equal access to information.
Reporting Hotline: 136****9699
The Audit Committee reviews the implementation of related party transactions on a quarterly basis, and Dedicated email: jubao@huategas.com
Continuous
the Audit Department includes them as a key focus of annual audits to prevent benefit transfer and ef-
supervision
fectively safeguard the legitimate rights and interests of the Company and minority shareholders.
Key Performance
Tax Risk Management During the reporting period, the Company did not have any major violations of integrity-based operation.
The Company strictly complies with national tax laws and regulations, adheres to the principles of honest tax payment and
lawful declaration, and deeply integrates tax compliance into the internal control system.
The Finance Department strictly implements tax law requirements to ensure accurate tax calculation,
Management Anti-Unfair Competition
timely declaration and full payment. The Audit Department regularly conducts special tax compliance
mechanism
inspections, focusing on value added tax, corporate income tax and cross border tax matters.
Huate Gas is fully aware of the importance of fair competition to the Company’s reputation, long-term development and mar-
ket order. Adhering to the principles of fairness and integrity, the Company explicitly rejects unethical or illegal business prac-
Risk Through internal control systems, tax related behaviors are regulated to eliminate illegal acts such
tices such as false advertising, price fraud and commercial bribery, and resolutely safeguards consumer interests and market
prevention as false invoicing, concealment of income and abuse of tax incentives. The management implements
order.
and control prior review for major tax planning matters.
Cultural The Company adopts a “zero tolerance” attitude toward any tax violations, encourages internal su- Key Performance
orientation pervision, and makes every effort to safeguard corporate reputation and long-term interests.
During the reporting period, there were no legal proceedings involving violations of any domestic or international unfair
competition regulations.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Green Development,
Safeguarding Lucid Waters and
Lush Mountains
Huate Gas unswervingly follows the path of green and low carbon
development. The Company takes compliance as the bottom line and strictly
controls pollution. It takes scientific carbon reduction as the guide, sets clear
carbon management targets, actively develops low carbon products, and
reduces the climate impact of its own operations and value chain. With efficient
utilization as the core, it continuously improves the efficiency of energy and
water resource use. At the same time, it advocates green culture and integrates
low carbon concepts into daily operations.
Topics covered in this section United Nations Sustainable Development Goals (SDGs) corresponding to this section
Environmental compliance management, energy utilization, climate change response, water resource utilization, pollutant
emissions, ecosystem and biodiversity protection, circular economy, waste treatment
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Management System
Environmental Compliance, Ecological Harmony
The Company actively studies and strictly implements environmental protection laws and regulations, continuously improves
environmental protection strategies and systems, and has formulated a set of environmental management rules and regula-
Governance tions, including Environmental Protection Responsibility System, Environmental Protection Management System for Construc-
tion Projects, Three Wastes Management System, Environmental Protection Training and Education System and 10 other sys-
Huate Gas takes the ISO 14001 environmental management system standard as guidance, establishes an integrated QEO tems. These systems comprehensively standardize all aspects from source prevention and control of projects, operation and
HSE management system covering the entire Company and integrating quality and occupational health and safety, and in- maintenance of environmental protection facilities, and full process control of pollutants, to personnel training, emergency
stitutionalizes it through the Management Manual and procedural documents. The Company has established a dedicated response and assessment and incentive mechanisms, and are dynamically updated to provide a solid institutional guarantee
HSE Department, clarifies environmental protection responsibilities from the general manager to frontline employees, and is for the Company’s green and low carbon operations.
supported by a comprehensive environmental protection system, target responsibility system and assessment mechanism. It
continuously carries out compliance evaluations, internal audits and management reviews, promotes environmental manage-
ment toward standardization, systematization and continuous improvement, and effectively supports the Company’s green,
Key Performance
low carbon and high-quality development.
During the reporting period, total environmental protection investment was CNY 1.02 million. The synchronous
Governance Structure
operation rate of environmental protection facilities was
“three simultaneities” for construction projects was 100%.
The Company has established an environmental management organizational structure of “unified leadership, hierarchical
responsibility and full participation”, ensuring effective implementation of environmental responsibilities, continuous optimi-
zation of the management system and deep integration of green development concepts into the entire operational process.
Highest
The general manager of the Company is the primary person responsible for environmental
responsible
protection and is fully responsible for the Company’s environmental protection work.
person
The HSE Department is the daily management and supervision body for environmental pro-
Responsible tection work of the Company, equipped with dedicated environmental protection personnel
Department responsible for core functions such as system implementation, supervision and inspection,
training and education, and emergency response to incidents.
Each production workshop and department are responsible for the operation, maintenance,
Executing
inspection and routine management of environmental protection facilities within its area, as Environmental management Environmental management Environmental management
entities
well as the management of the “three wastes” (wastewater, waste gas and solid waste). system certificate of Huate Gas system certificate of Chenzhou system certificate of Dongguan
Xiangneng Gaoneng
The Production Department, Research and Development Center, Human Resources Depart-
Supporting ment and Procurement Department cooperate in implementing environmental protection re-
departments quirements according to their respective responsibilities, such as process emission reduction,
compliant procurement and personnel training.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Environmental Information Disclosure
The Company strictly complies with relevant regulations and regularly reports in detail to the local people’s government en- Key Performance
vironmental protection administrative authorities on the operation of facilities. The report covers key information such as fa-
cility operating conditions, pollutant discharge status, sampling operations and monitoring details, and continuous operation During the reporting period, the Company conducted 9 environmental protection training sessions, with 1,090
records. At the same time, the Company adheres to the principle of openness and transparency, publicly discloses facility participant attendances.
operating conditions, routine monitoring data and various management systems to society, and proactively accepts public
supervision.
In environmental supervision work, the Company actively cooperates with the supervision and inspection of the local peo-
ple’s government environmental protection administrative authorities, truthfully reports relevant situations and fully provides
Strategy
required materials. It strictly prohibits obstructing on-site inspections by environmental protection authorities for any reason,
and strictly forbids concealing actual situations or submitting false materials. The pressure of pollutant emissions faced by the electronic specialty gas industry should not be underestimated. Huate Gas
approaches from both risk and opportunity perspectives, refers to relevant laws and regulations and local pollutant discharge
standards, and in combination with its actual production and business operations, systematically and accurately identifies
and evaluates environmental compliance issues, providing a strong basis for subsequent improvements. While pursuing eco-
Rectification response report submitted by Jiangxi Huate Elec- nomic development, it adheres to the bottom line of environmental protection and promotes long-term sustainable develop-
tronic Chemical Co., Ltd. regarding issues identified during on- ment.
site verification of its wastewater automatic monitoring facilities
by the ecological environment authorities
Time Impact on
Financial Degree of
Risk type Description range of value chain Response measures
impact impact
impact links
Mainly includes leak-
age risks caused by
chemical leakage,
fire accidents and
mental risk receptors, environmental risk
improper treatment
Environmental Awareness Enhancement source substances, environmental risk units
of wastewater and
and major risk sources, and regularly con-
waste gas. Chem-
In order to ensure that employees clearly understand the relevance and importance of their activities or work to the environ- duct retrospective analysis of historical sud-
ical leakage may
den environmental incidents, and implement
mental management system and contribute to the achievement of management objectives, the Company, in accordance cause pollutants to
prevention and control measures for sudden
with the Environmental Protection Training and Education System, regularly conducts training on environmental management enter surface water
environmental events;
through rainwater
topics, establishes the Employee Environmental Education Management Archive, and further deepens employees’ under- 2. Establish a hazardous source inspec-
pipeline networks.
tion system, arrange personnel for regular
standing and awareness of environmental management objectives across all departments through various methods such as Hazardous waste
inspections, and set up 24h monitoring in
such as improperly
regular meetings, special study sessions and cultural briefings in daily work, while strengthening communication. the tank area. Assign dedicated personnel
handled firefighting Cost increase,
to manage hazardous waste, clarify job
sand may affect damage to the
responsibilities, and prioritize safety preven-
Leakage risk the environment, High Short term Operation
Company’s tion;
and volatilization of
leaked chemicals reputation
tions in warehouses and tank areas. Con-
may also pollute
struct emergency accident pools equipped
the atmosphere. In
with valves and water pumps. Leakage of
fire accidents, fire-
substances such as methyl ethyl ketone and
fighting wastewater
acetone can be stored in emergency acci-
containing chemicals
dent pools to prevent leakage outside the
may be discharged
plant area;
into surface water
through rainwater
emergency response systems, and promptly
pipeline networks,
stop processes such as filling operations
while generating
after accidents occur to prevent further ex-
a large amount of
pansion of impacts.
toxic and harmful
smoke to pollute the
air.
Standardized management training General environmental protection Training on standards for hazardous
for industrial solid waste (including basic knowledge and regulatory waste storage and identification
hazardous waste) awareness training labeling
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Time Impact on Impact, Risk and Opportunity Management
Financial Degree of
Risk type Description range of value chain Response measures
impact impact
impact links
Closed Loop Management Process
pollutant discharge permit, environmental The Company follows the principle of “prevention first” and systematically conducts environmental risk inspection and as-
impact assessment approval and envi- sessment in accordance with the requirements of the ISO 14001 environmental management system. To this end, the Com-
The government
ronmental emergency plan filing, and has
raises pollutant dis- pany has established a series of management systems, including the Control Procedure for Response Measures to Risks and
established a policy dynamic tracking
charge standards or
mechanism to obtain the latest environ- Opportunities, the Control Procedure for Identification of Environmental Factors and Determination of Significance, and the
introduces new envi-
mental protection regulatory information
ronmental protection Procedure for Hazard Identification, Risk Assessment and Determination of Control Measures, thereby improving the environ-
in a timely manner;
regulations, resulting
Environmental Medium 2. Reserve special environmental protec- mental risk management system. On this basis, the Company comprehensively reviews activities within the defined scope,
in the need for the Cost increase High Operation
compliance risk term tion funds for equipment upgrades and identifies environmental factors and their impacts throughout the entire life cycle from product procurement, production, de-
Company to upgrade
technological transformation;
equipment or improve livery to after sales that the Company can control, influence or needs to pay attention to.
processes to meet
development, develop new processes, re-
new requirements,
place new equipment through technolog-
thereby increasing
ical transformation, and seek alternative Assessment steps Specific operations
compliance costs.
raw and auxiliary materials to existing
hazardous substances to reduce long-term
compliance costs.
Analyze the evolution patterns of various possible environmental accidents and the impact
Risk identification
degree of natural disasters and identify environmental hazard factors.
system, strengthen internal audits and
compliance inspections, avoid information
Analyze the relationship with surrounding residents, units and regional environments that
deviation, and ensure the accuracy and
Cost increase, Risk analysis may be affected, construct scenarios of sudden environmental events and their conse-
Failure to disclose timeliness of data;
Risk of insufficient environmental data damage to the 2. Proactively disclose progress of environ- quences, and determine environmental risk levels.
environmental in a timely, accurate Company’s mental governance to enhance transpar-
or complete manner High Short term Operation ency and public trust;
information disclo- may lead to regulato- reputation, re- 3. Require and urge environmental man-
sure ry penalties or a crisis duced financ- agement and statistical personnel to study Regularly inspect the status of emergency resources that can be mobilized at the first
of investor trust. relevant laws and regulations, strengthen time, including environmental emergency teams, equipment, materials, monitoring devices,
ing capability
the concept of rule of law and environ-
mental protection awareness, and strive
Risk response emergency treatment capacity for pollutants and emergency storage sites for pollutants,
to improve professional competence and as well as emergency resources available for assistance or agreed assistance, to ensure
business capabilities
environmental risk response capability.
The Company regularly conducts management reviews, strictly inspects and evaluates the
Time Impact on Prevention, response
Opportunity Financial Likelihood of Degree of environmental risk management system, and promptly reassesses and revises control pro-
Description range of value chain Response measures and rectification
type impact occurrence impact cedures to ensure their adequacy and suitability.
impact links
Continuously deepen re-
search and development,
With the tightening of
launch new products such
laws and regulations Emergency Plans and Drills
as germane and disilane,
related to pollution
gradually increase produc-
prevention and con- Emergency Plan System Construction
tion volume, and contin-
trol, downstream mar-
Market oppor- Revenue Long Operation, uously promote projects
ket demand for pollut-
Medium Medium such as hexafluorobutadi- The Company has established a comprehensive emergency plan system, including the Comprehensive Emergency Plan
tunity ant emission reduction increase term downstream ene and precursors. While for Environmental Emergencies as well as special plans for specific risk sources such as liquid ammonia leakage, dichlo-
is increasing, creating
meeting the production
new opportunities rosilane leakage and hazardous waste warehouse leakage. The plans are revised at least once every three years in
process requirements of
for environmentally
downstream customers, accordance with regulatory requirements and are dynamically adjusted based on actual conditions. The plans clearly
friendly products for
these products also have
the Company. define the emergency organizational structure, division of responsibilities, response procedures, disposal measures, ma-
better environmental per-
formance. terial support and post incident handling. For example, fire fighting wastewater is collected into the accident emergency
pool to prevent secondary environmental pollution and ensure personnel safety and environmental compliance.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Emergency Drills and Improvement Whether
Target planning Target control status
During the reporting period, the Company and its subsidiaries carried out multiple scenarios based and diversified achieved
emergency drills, gradually transitioning from scripted drills to unscripted practical drills. The drill content covered the
Gas and pressure vessel explosion and major leakage accidents are 0 No leakage accidents
entire process chain including leakage control, firefighting, personnel evacuation, warning and isolation, environmental
monitoring, medical rescue, emergency material mobilization and firefighting wastewater diversion, such as closing
rainwater valves and opening accident pools. After each drill, summary evaluation was conducted. For example, in Annual fire accidents are 0 No fire accidents
√ All
response to the “hose detachment” issue identified during ammonia drills, measures were proposed to strengthen
achieved
routine inspection of emergency materials. In response to the “lack of fire water spray nozzles” identified during liquid Hazardous waste is legally transferred and handled by qualified units No leakage accidents
ammonia drills, procurement and allocation were arranged in a timely manner to continuously improve emergency pre-
paredness. Noise emissions at plant boundary meet standards No exceedance
To ensure the efficient implementation of environmental protection targets and the green and safe operation of production,
the Company has established a grid-based responsibility system with full coverage and full participation by formulating and
implementing the Environmental Protection Responsibility System and the Environmental Protection Target Responsibility Sys-
tem. This system decomposes core targets such as “eliminating major environmental pollution accidents”, “ensuring stable
compliance of wastewater discharge” and “ensuring synchronous and efficient operation of environmental protection facili-
ties” to each department and position, strengthening responsibilities at all levels, promoting the effective implementation of
environmental protection measures, effectively preventing environmental risks, and ensuring employee occupational health
and sustainable development of the Company.
Comprehensive emergency rescue drill for liquid ammonia Emergency plan drill for dichlorosilane
Indicator Unit 2025 2024 2023
leakage safety and environmental protection accidents gas leakage
Environmental Risk Hidden Hazard Inspection
Wastewater discharge Ton 51,091 59,885 46,333
Through internal regulations such as the Environmental Protection Incident Management System and the “Three Wastes”
Management System, the Company has established a mechanism combining regular and irregular inspection of environ-
Waste gas emissions Ton 1,657.8 1,502.3 1,702.1
mental hidden hazards and implements closed loop management. The HSE Department takes the lead in organization, and
Compliance rate of general
each production workshop and department are responsible for routine inspection within its area. The inspection scope covers
industrial solid waste disposal
% 100 100 100
key aspects such as the operating status of environmental protection facilities including waste gas treatment devices and
Compliance rate of hazardous
emergency accident pools, compliance of hazardous waste storage in terms of identification, anti-seepage and classification,
waste disposal
% 100 100 100
rainwater and sewage diversion systems, pollutant discharge outlets and emergency material allocation. Problems identified
are recorded in rectification ledgers with clear measures, responsible persons and time limits, and rectification effectiveness Environmental data violation
is tracked and verified. At the same time, the Company actively coordinates with external supervision. For example, Jiangxi disclosure incidents
Times 0 0 0
Huate Electronic Chemical Co., Ltd. promptly completed rectification and formed a closed loop in response to issues identified
during automatic monitoring verification by ecological environment authorities, effectively preventing environmental risks.
Pollution Prevention and Control
Indicators and Targets
Huate Gas effectively fulfills environmental responsibilities and actively practices environmental friendliness commitments. Huate Gas has established and implemented a comprehensive and systematic environmental management system covering
The Company continuously improves the environmental management system, increases environmental protection invest- wastewater, waste gas, waste and noise. Through the combination of source control, process management, classified treat-
ment, and formulates environmental compliance management targets in line with its own development around key indicators ment and continuous monitoring, the Company strictly adheres to the bottom line of environmental compliance, actively ful-
such as emission management and incident management, steadily advancing toward green and sustainable development. fills environmental responsibilities, and is committed to achieving coordinated development of green operation and ecological
friendliness.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Waste Gas Management
According to the environmental compliance testing reports issued Huate Gas continuously strengthens air pollution control, adopts a combination of classified collection, efficient treatment
by third party testing institutions commissioned by the Company, equipment and refined management to reduce waste gas emissions, and uses spray purification towers to recover and treat
the Company’s wastewater, waste gas and noise all meet the waste gas, strictly controlling atmospheric pollutants generated during production and operation. To minimize the environ-
relevant national and local environmental protection standard mental impact on the location of operations, the Company monitors waste gas emissions based on production processes and
limits, and no exceedance of emission standards has occurred. actual production conditions, conducting monitoring at least 4 times per year, with each monitoring carried out under rela-
tively stable production conditions.
Wastewater Management
Strict measures are taken for volatile raw materials during procurement and
The main sources of the Company’s wastewater include production wastewater, initial rainwater, domestic sewage (including
storage;
employee domestic sewage and kitchen wastewater), and cleaning wastewater from empty 12mL gas cylinders. The Compa-
Storage must use sealed facilities, such as storage tanks equipped with breathing
ny strictly implements national environmental protection regulations, continuously improves treatment technologies, strictly Source control
valves, pressure regulating devices or internal floating roof tanks;
prevents environmental pollution incidents, ensures stable compliance of wastewater discharge, and resolutely eliminates
Recovery treatment is implemented during loading and unloading to reduce waste
any discharge exceeding standards.
gas generation and reduce emission risks at the source.
The Company has constructed domestic sewage and industrial wastewater treatment and utilization facilities to implement
Gases discharged from safety valves, pipelines and containers during the
clean and polluted water separation and rainwater and sewage separation. The HSE Department is responsible for conduct-
transportation and storage of volatile raw materials and products must be
ing regular and irregular self-monitoring of the Company’s wastewater discharge outlets, and dedicated HSE personnel regu-
Transportation, recovered or treated by other reasonable and effective measures;
larly sample and test workshop cleaning wastewater, strictly prohibiting discharge exceeding standards. To ensure treatment
storage and Online closed loop sampling is adopted during sampling and analysis, strictly
effectiveness, the Company requires all relevant departments and workshops to strictly comply with operating procedures,
treatment controlling the leakage rate of static sealing points below 0.5 ‰ to prevent gas
strengthen daily management and maintenance of facilities, and maintain complete operation records. At the same time, the
leakage.
HSE Department conducts regular and irregular monitoring of discharge outlets, and dedicated personnel carry out regular
Process
sampling and testing of workshop cleaning wastewater. All waste gas discharged from exhaust outlets of production equipment is
control
Production waste
At the same time, the Company continuously promotes wastewater recycling, actively develops advanced industrial waste- collected and treated by measures such as recovery, absorption, adsorption and
gas treatment
water treatment technologies such as RO concentrated water recovery and utilization, optimizes wastewater management, combustion, and is discharged after meeting standards.
and promotes wastewater reduction.
For facilities emitting odorous pollutants and other chemical odors, closed treatment
Pretreatment Odor control is adopted, and odorous pollutants are purified and recovered to ensure that no
Type of sewage Treatment process Discharge
process chemical odor exists outside the plant boundary.
Pretreatment by The Company regularly and irregularly conducts self-monitoring of smoke and
Domestic
a three-stage Self-monitoring dust, masters the concentration and total emission of pollutants, and fills in
sewage After meeting Guangdong provincial local
septic tank environmental protection statistical reports accurately and on time.
standards, discharged into the sewage
Pretreatment by
treatment plant through the municipal A third-party environmental monitoring institution is entrusted to conduct
Kitchen grease separation Treatment by “hydrolysis acidification
pipeline network. annual monitoring of the Company’s waste gas, no less than once per year.
wastewater and residue + contact oxidation + sedimentation + Entrusted
Monitoring The monitoring data serve as an important basis for annual pollutant emission
separation tank disinfection” process monitoring
and statistics and are registered and disclosed on monitoring boards, with ledgers
Recycled for use in cleaning lines, supervision established.
Production equipment cooling makes up water and
wastewater water circulation make up water, without The Company accepts supervision and on-site inspections by local people’s
external discharge. government environmental protection administrative authorities, truthfully reports
Public
relevant situations and provides materials. It publicly discloses facility operation
Tr e a t e d b y s e l f - b u i l t s e w a g e Recycled to cleaning lines, equipment supervision
status, routine monitoring data and various management systems to society, and
Cleaning treatment facilities (treatment process cooling makes up water and water
- accepts public supervision.
wastewater is coagulation sedimentation + A/O circulation make up water, without
biochemical + membrane bioreactor) external discharge.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Waste Management
Generation in 2023 (tons) Generation in 2024 (tons) Generation in 2025 (tons)
Huate Gas strictly formulates and implements the Waste Management Control Procedure in accordance with national laws,
regulations and industry standards, and implements full life cycle management of waste generated during production and
operation, clarifying the specific responsibilities of relevant departments and positions at each stage. The Company has es-
Generation 82.26 107.49 191.34
General
tablished standardized waste management ledgers, recording in detail information such as the type, quantity, flow, storage,
waste
utilization and disposal of waste, and utilizes information technology to achieve full process traceability and queryability. At Disposal 82.26 107.49 191.34
the same time, the construction of on-site temporary storage facilities for solid waste strictly complies with the Standard for
Pollution Control on the Storage and Disposal Site for General Industrial Solid Waste (GB18599) and the Standard for Pollution
Control On Hazardous Waste Storage (GB18597), ensuring compliant storage and effective control.
Generation 35.56 42.21 20.06
Hazardous
waste
Disposal 27.24 42.21 20.06
Solid hazardous waste is strictly classified in accordance with the National Hazardous
Waste List (2015 edition); Noise Management
Classification On-site storage is equipped with anti-seepage, anti-volatilization and waste gas and
Noise generated during the operation of Huate Gas mainly comes from vehicles and various mechanical equipment. In order
and storage wastewater recovery facilities to ensure sealing;
to effectively reduce the adverse impact of noise on the surrounding acoustic environment, the Company conducts precise
Hazardous waste storage points are designated for specific use and equipped with
monitoring of environmental noise at the plant boundary on a regular basis in accordance with relevant standards and pri-
standardized identification.
oritizes the selection of low noise and environmentally friendly equipment. For existing equipment, the Company effectively
suppresses the generation and propagation of noise by installing professional noise reduction facilities such as high efficien-
cy sound insulation enclosures and vibration damping pads, aiming to ensure that plant boundary noise complies with Class
General waste: Domestic and office solid waste is handled by sanitation departments;
Industrial solid waste is stored in general solid waste warehouses and handled by recy-
cling companies;
Disposal and Hazardous waste: After classified collection in hazardous waste warehouses, it is regular- Biodiversity Protection
transportation ly handed over to professional institutions for disposal, and waste catalysts are recycled
and utilized by manufacturers; The Company, with a high sense of responsibility, makes every effort to avoid any form of damage to marine and terrestrial
All waste is entrusted to qualified third parties for timely transportation to avoid long-term ecological environments, ensuring that all projects are advanced in an orderly manner within an ecologically friendly frame-
accumulation. work.
Source Control Implementation
During the planning and implementation of investment projects, Huate Gas always takes the reduction of negative
Supervision Regularly disclose key information such as solid waste generation, disposal methods and environmental impact as a core consideration. The Company firmly implements the “three simultaneities” principle,
and disclosure effects to the public, and proactively accept social supervision. namely that environmental protection facilities are designed, constructed and put into operation simultaneously with
the main project, controlling the environmental impact of project construction from the source.
Environmental Monitoring Implementation
To monitor in real time the impact of operations on the surrounding ecological environment, the Company regularly
conducts comprehensive monitoring within the plant boundary and within a radius of 5 kilometers. The monitoring
Comprehensive Priority is given to the comprehensive utilization of solid waste generated during production covers multiple aspects including surface water, groundwater, atmospheric environment and acoustic environment,
utilization processes. ensuring strict compliance with relevant national and local standards.
Ecological Maintenance Implementation
During the reporting period, the Company’s production bases, and operation-sites were not located in or near nature
reserves. Through comprehensive monitoring and evaluation, no significant impact of the Company’s operations on
biodiversity was identified, effectively maintaining the balance and stability of ecosystems.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Low Carbon Actions, Climate Response Financial
Degree Time Impact on
Risk type Description of range of value chain Response measures
impact
impact impact links
Governance
Causes damage to
plants and facilities at
The production process of electronic specialty gases usually involves high carbon emission stages, and emission sources are production bases in
Implement zoned management
Guangdong and Jiangsu,
complex. Huate Gas integrates climate change response with energy management and incorporates it into the core gov- of chemicals to prevent
disrupts employee
reactions after leakage that
ernance agenda of the enterprise. The Company has formulated the Management Measures for Climate Change Response, travel and normal work,
may trigger secondary disasters
and restricts logistics
drives green transformation through top level design, establishes an integrated governance system covering strategic plan- and use high-quality chemical
conditions, resulting in
ning, execution implementation and supervision evaluation, systematically responds to coordinated management require- storage containers.
production interruption
Formulate the Comprehensive
ments of climate and energy, and injects resilience into the Company’s sustainable competitiveness. and affecting revenue.
Emergency Plan for
Some chemical raw
Production Safety Accidents
materials stored within
of Guangdong Huate Gas
Energy conservation leading group of Huate Gas the Company’s plants
Co., Ltd. and establish a
present safety and
systematic, standardized and
environmental risks under Cost
institutionalized response
Person in Physical Extreme extreme weather, some increase, Upstream
High Short term mechanism for typhoons and
Position Responsibilities risk weather of which may lead to revenue operations
charge heavy rainfall.
fire or explosion, which decrease
Reserve sufficient emergency
not only directly cause
materials and establish
financial losses but may
Responsible for studying and making decisions on major energy conservation is- close cooperation with local
also result in fines and
emergency rescue institutions
sues and regularly listening to work reports from the deputy leader and members; compensation.
General man- to ensure timely external
Extreme weather events
Leader Formulating work requirements for promoting energy conservation and energy support in the event of
ager may cause hazardous
accidents.
management and proposing specific energy conservation targets for the Compa- chemicals in storage and
Set up containment dikes
ny to the energy conservation group. transportation to leak
and emergency pools within
due to packaging rupture
the plant to prevent leaked
or improper handling,
chemicals from spreading
leading to pollution of
outside the plant area.
Regularly inspecting the implementation of energy conservation measures by var- air, water and soil, and
ious departments and presiding over a monthly energy management meeting; affecting the normal life
Operations of surrounding residents.
Deputy leader Formulating clear reward and punishment assessment methods;
director
Ensuring the implementation of transformation funds for energy conservation
planning.
Closely monitor national and
The chemical manufacturing local policies and regulations
Responsible for specific energy management, promoting the implementation of industry is facing increasingly on greenhouse gas emission
energy efficiency improvement, energy conservation planning, energy conserva- stringent policies on greenhouse disclosure and interpret policy
gas emissions and disclosure. changes in a timely manner
tion training and publicity within the Company;
Department Carbon information disclosure
Cost Medium
to prepare for compliant
Members Coordinating daily production with energy conservation transformation, arranging Policy risk requirements increase High Downstream disclosure.
managers increase term
maintenance and transformation schedules for energy conservation projects, and accounting costs, and failure Disclose greenhouse gas
to meet standards affects the emission related information
ensuring smooth completion of transformation projects; Company’s reputation, while in detail in the Company’s
Carrying out energy conservation training and publicity work of the Company. Transition overseas markets may face annual sustainability report
risk carbon tariffs that affect profits. in accordance with relevant
requirements.
Strategy
Semiconductor customers
Huate Gas approaches from both risk and opportunity perspectives, refers to studies on climate, macro environment and in- require supply chains to
Customer Optimize gas production
dustrial policies, and evaluates the impact of climate change on its business from both risks and opportunities in combination provide carbon footprint Cost Medium
requirements Medium Operations processes to reduce carbon
certification, driving low increase term
with its own operations. The evaluation results are integrated into strategic resilience planning, and accordingly the Compa- upgrade emissions.
carbon transformation of
ny adjusts its business development strategy and resource allocation, significantly enhancing its adaptability and resilience in production processes.
responding to climate change.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Time Impact on Indicators and Targets
Opportunity Financial Degree of
Description range of value chain Response measures
type impact impact
impact links Key indicators Unit 2023 2024 2025
With the advancement of green
development, downstream industries such
as photovoltaics and new energy have Continue to increase
Total tCO ₂ e 14,794.35 16,027.13 17,744.31
Revenue
increasing demand for specialty gases. investment in research
increase,
Greenhouse
Enterprises can develop related products and development and
increase Scope 1 tCO ₂ e
to explore new market opportunities. At promote technological
in the gas emissions
Market the same time, the upgrading of carbon Operations upgrades of gas
Company’s Medium Long term
opportunity reduction technologies promotes the downstream products to meet
optimization of production processes and
reputation,
expansion
rapidly changing market Scope 2 tCO ₂ e 5,776.66 8,298.90 9,121.60
energy saving and consumption reduction, demands, especially in
of market
which not only reduces costs but also meets green gases and low
tCO ₂ e per million
share
environmental protection requirements, carbon technologies. Total
attracting more environmentally conscious revenue
customers and expanding new markets. Greenhouse
tCO ₂ e per million
Carry out energy
gas emission Scope 1
revenue
During the process of strong national intensity
saving technological
promotion of green development,
tCO ₂ e per million
transformation and
renewable energy support policies Scope 2
continuously explore revenue
and incentive mechanisms have been
suitable application
Energy implemented, providing opportunities Cost
Medium Long term Operations opportunities for
utilization for the Company to adopt renewable reduction
renewable energy in
energy smoothly. By adjusting the energy
structure and improving energy efficiency,
various production Research and Development of Low Carbon Products
and operation
greenhouse gas emissions can be
processes of the Huate Gas, through continuous innovation and breakthroughs, has established a low carbon material matrix covering sem-
effectively reduced.
Company.
iconductor manufacturing and clean energy fields, providing practical solutions for energy saving and emission reduction
across the global electronic industry chain.
Impact, Risk and Opportunity Management
Product Characteristic Highlights Green Value and Benefits
To address potential risks and opportunities brought by climate change, Huate Gas has incorporated climate risks into the
Company’s risk management system, established a climate risk assessment and management process mechanism, and High selectivity and anisotropy; Global warming potential (GWP) < 10, atmospheric lifetime
formed a closed loop management system for identification, assessment, response and improvement of climate risks. high etching rate; suitable for < 1 day; more than 90% emission reduction compared with
Hexafluorobutadiene high aspect ratio processes; high traditional CF ₄ ; the only alternative that simultaneously
Stage Specific operations
selectivity to photoresist and meets etching conditions and emission reduction
silicon nitride requirements
When identifying and determining the Company’s climate risks and opportunities, various
Internal and external
internal and external factors that affect the Company’s daily operations, business model, Lower deposition temperature than traditional silane,
factors and stakeholder Low temperature deposition;
financial status, as well as impacts on the external environment and society, together with significantly reducing process energy consumption;
needs and expectations Ethylsilane high film formation rate; good
stakeholder requirements, are taken into consideration. improving equipment capacity and reducing resource
film uniformity
consumption
Based on macro policies, regulatory requirements and industry conditions, methods such
Identification and de- High selectivity and anisotropy;
as questionnaire surveys, group discussions, expert consultations, scenario analysis, policy Replaces high GWP perfluorocarbon etching gases, reducing
termination of risks and suitable for 7nm and below
analysis, industry benchmarking and interviews are adopted to screen climate risk points Hydrogen Bromide greenhouse gas emissions; improves chip yield and reduces
opportunities advanced processes; purity
and opportunity points that the Company may currently face. rework waste
reaches 5N
Measures for risk and Based on the results of risk analysis, combined with the causes of risks and the tolerance Purity reaches 7N; used for LED Supports the development of renewable energy industries
opportunity response level, risks and returns are weighed to select appropriate risk response plans. High Purity Ammonia epitaxy and photovoltaic cell such as photovoltaics and LEDs; localization substitution
deposition reduces carbon emissions from long distance transportation
The Company will combine internal objectives and external factors to supervise the imple- Applied in high end lithography Higher energy efficiency compared with traditional light
Update of risks and op- Lithography Gases
mentation of response measures for climate change risks and opportunities and evaluate machines; supports advanced sources, indirectly reducing overall energy consumption of
portunities (Ar/Ne/Xe, F ₂ /Kr/Ne)
the effectiveness of such measures. process lithography wafer fabs; improving lithography efficiency and yield
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Efficient Utilization, Circular Development
Actively promote and apply new energy saving technologies, new facilities, new process-
Promoting new
es and new materials;
technologies
Energy Utilization Encourage employees to achieve energy saving and efficiency improvement through“minor
and processes
improvements and innovations” and technological transformation activities, and grant re-
The Company strictly follows national energy policies, energy management standards, and relevant laws, regulations and
wards to individuals or departments that achieve significant results.
technical specifications on energy conservation and environmental protection, systematically builds a compliance manage-
ment system, and formulates the Energy Conservation Management System with energy saving, consumption reduction
and improvement of energy utilization efficiency as the core. It defines a four-level management structure of “Company, de-
Incorporate energy saving and emission reduction into major thematic publicity activities
partment, workshop and team” and the responsibilities of the energy management leading group, achieving full chain man- Deepening
and actively promote the social ethos of “saving is honorable, and waste is shameful”;
agement from metering and statistics to cost accounting. At the same time, through the Energy Conservation Training and publicity
Popularize knowledge of energy conservation and environmental protection, enhance
Publicity System, the Company implements normalized training and diversified publicity, strengthens employees’ awareness and cultural
awareness among all employees, and grant each employee the right to report and stop
of energy conservation, and establishes corresponding reward and punishment mechanisms, forming a closed loop energy development
wasteful behaviors.
management system with full participation and clear responsibilities.
The Company has established an energy saving target that electricity consumption per CNY 150,000 of output value does not
exceed 1000 kilowatt hours, and continuously improves energy efficiency from multiple dimensions including management, Water Resource Utilization
technology and behavior.
Water resource management of the Company, as an integral part of the energy management system, follows a unified in-
stitutional framework and organizational structure, incorporates water saving into the normalized management system,
clarifies responsibilities at all levels, and achieves standardized statistics, quota management and continuous optimization
of water consumption. In specific implementation, the Company systematically promotes water saving from aspects such as
Implement a four-level management responsibility system to ensure that energy saving
Strengthening institutional construction, metering and monitoring, maintenance optimization and awareness enhancement, ensuring that
responsibilities are assigned to teams and individuals at all levels;
management water resource management forms a closed loop that is monitorable, assessable and traceable.
Establish and improve original records of energy consumption, statistical ledgers and eco-
system
nomic accounting systems to provide data support for analysis and decision making. In addition, the Company focuses on cultivating a water saving culture, enhances awareness among all employees through
various forms such as slogans, publicity boards, training and thematic activities, and guides employees to consciously prac-
tice water saving behaviors. The Company also incorporates water saving performance into the energy management reward
and punishment system, corrects wasteful behaviors and rewards water saving innovation and practices, thereby forming a
management closed loop and ensuring sustainable utilization of water resources and the achievement of water saving tar-
gets.
Equip and manage energy metering instruments in accordance with
national standards (GB17167), and conduct regular verification; Install water meters in each
Enhancing Regularly inspect and maintain water using unit, implement
metering and Regularly carry out technical and economic analysis of major energy water supply pipelines, valves
Strengthening hierarchical metering and reg-
statistical consuming equipment, utility systems and overall energy utilization of and water using equipment, and Improving water
equipment ular pipeline leakage detection,
analysis resolutely eliminate phenomena metering and
the Company, identify energy saving potential and define improvement and pipeline strictly control water loss, and
such as “leakage, overflow, drip- monitoring conduct water use analysis
directions. maintenance
ping and seepage” and “contin- and quota assessment based
uous water flow”. on statistical data.
Integrating
Actively advocate and imple-
Promoting water saving
Optimizing ment secondary use and multiple Continuously improve the ra-
The production department centrally schedules the start and stop water into design and
production reuses of water (such as air con- tionalization and refinement of
time of major power consuming equipment to improve load rate; recycling management water use by adjusting water
scheduling ditioning condensate water and
Maintenance teams guide workshops to strengthen equipment optimization
and equipment cleaning water), and improve use structure, optimizing process
maintenance maintenance and reduce unplanned shutdowns. water resource utilization effi- flows and strengthening planned
ciency. water use management.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Key indicators Unit 2025 Green Operation, Cultural Cultivation
The Company aims to build a green and low carbon office environment, integrates sustainable development concepts into
Water withdrawal 10,000 tons 12,336.71 daily operations, and comprehensively promotes green office practices through systematic institutional development and
cultivation of a culture with full employee participation, effectively reducing operational carbon footprint and resource con-
sumption.
Recycled utilization 10,000 tons 450
Prioritize the use of energy saving and environmentally friendly products and prohibit procure-
ment of obsolete equipment;
Water consumption Tons 7,227.61 Energy use Promote refined electricity management, standardize air conditioning temperature settings, use
management energy saving lighting and make full use of natural light;
Water consumption per unit revenue Tons per million revenues 51 Eliminate long lighting and daytime lighting, strengthen control of night and landscape lighting,
and prohibit the use of high energy consumption heating appliances.
Fully promote water saving equipment and strengthen inspection and maintenance of water
Water saving using facilities;
management Advocate water recycling, encourage the use of rainwater and reclaimed water for landscaping
Circular Economy irrigation, and prohibit excessive irrigation
The Company complies with the requirements of the Circular Economy Promotion Law of The People’s Republic of China and
Fully promote electronic office and paperless processes and strictly control paper use;
takes practical measures to comprehensively improve the utilization efficiency of various resources such as water resourc-
Green office Promote double sided printing and reuse of paper;
es, electricity resources and office supplies. On the one hand, it ensures the stability of resource supply. On the other hand,
supplies Restrict disposable products, prohibit the use of non-degradable plastic products, and advocate
it reduces resource waste, ensures rational allocation of resources, and actively practices the concept of circular economy.
the use of environmentally friendly recycled products and reusable cups.
Through efficient utilization of resources, the Company promotes sustainable development.
Cylinder protective covers are inspected and maintained after each use and reused after meeting requirements.
Strictly implement official vehicle approval systems and reduce unnecessary vehicle use;
Green travel Prioritize procurement of new energy vehicles and construct supporting charging facilities;
Residual gas cylinders returned by customers are tested and treated and reused after meeting standards. Encourage employees to commute by public transportation, cycling and other low carbon modes.
Domestic sewage is sent to municipal and Guigong Industrial Park sewage treatment plants for treatment and recycling.
Inspection water at the cylinder inspection station is treated by sewage treatment facilities and reused.
Anti food Implement the Anti Food Waste Law and establish meal forecasting mechanisms in canteens;
waste Promote the practice of “Clean Plate Campaign”.
The cooling system of production equipment adopts circulating water for reuse.
Circulating water coolers are used in production areas in summer for cooling.
Waste Strictly implement classified disposal and collection of domestic waste;
Adsorbents used in adsorbers are recycled and reused.
classification Carry out publicity and volunteer activities on waste classification and actively participate in
demonstration initiatives.
Paper printed on one side for Company documents is reviewed and reused if applicable.
Continuously carry out publicity and education activities in conjunction with themes such as Na-
Cultural
tional Energy Conservation Publicity Week, Low Carbon Day and Green Travel Publicity Month;
development
Advocate simple, moderate, green and low carbon work and lifestyle.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Innovation Driven,
Achieving Value Growth
Huate Gas is committed to creating greater value for customers, the industry
and society. The Company adheres to innovation driven development, focuses
on breakthroughs in core technologies of electronic specialty gases, and
promotes the transformation of research and development achievements into
value within the industrial chain. It deepens supply chain collaboration and
ensures industrial security through a resilient supply chain. Adhering to lean
concepts, it continuously optimizes the operation system and consolidates the
competitive foundation with excellent quality. By practicing dedicated service,
it achieves mutual success with partners through responsible marketing and
refined customer management. It builds strong security barriers to safeguard
information assets and user privacy.
Topics covered in this section United Nations Sustainable Development Goals (SDGs) corresponding to this section
Research and development and innovation, product quality and safety, protection of customer rights and interests, informa-
tion security and privacy protection, responsible supply chain management, equal treatment of small and medium sized en-
terprises
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Innovation Driven, Leading Development Indicator Name Unit 2025 2024
Bachelor’s degree Persons 77 82
Governance
Master’s degree Persons 12 8
The Company has established a matrix type research and development governance structure with the board of directors and
general manager office or decision-making level as the leadership core, the research and development center as the primary Doctoral Degree Persons 12 2
implementation body, and other functional departments participating collaboratively.
Under 30 Years Old Persons 45 42
Category Responsibilities and functions description
The Company’s decision-making level, including the general manager and deputy general managers in
Leadership charge, is responsible for approval of research and development strategies, final decisions on major pro-
and decision- ject initiation and acceptance, approval of important systems and coordination of major resources. At key
making level review nodes such as project initiation, design review and acceptance, at least three members of the deci-
sion-making level are required to participate.
The Research and Development Center is the core execution and management department for research
Above 60 Years Old Persons 1 1
and development activities, responsible for the full process organization and management of projects
from initiation, design and implementation to acceptance, formulating research and development plans
Functional Core Technical Personnel of the Company Persons 4 4
and budgets, organizing technical reviews and verification, and responsible for summarizing and preserv-
management
ing research and development results.
department
The Investment Planning Department acts as the coordinating department in certain systems such as new Full Life Cycle Management of Research and Development Projects
product development, responsible for identifying market opportunities, conducting project feasibility stud-
The Company implements standardized management covering the full life cycle of research and development projects.
ies, organizing project initiation and coordinating and supervising cross departmental projects.
Core procedural documents include the Project Research and Development Management Procedure, the Simple Process for
Sales and marketing departments provide market demand information, conduct market feasibility analy-
Design and Development and the Management Measures for New Product Development. According to these systems, pro-
sis, and participate in project acceptance and subsequent market promotion.
jects from initiation and design, implementation and verification to acceptance and change must follow clear stage control
Production, quality inspection and production departments are respectively responsible for pilot production
requirements, including feasibility evaluation and cross departmental review, advancement according to plans and progress
and mass production transition, sample and product testing, and equipment manufacturing and installa-
monitoring, document archiving and product testing and other complete processes. At the same time, the Company has es-
Supporting tion.
tablished standardized change approval and project closure procedures to ensure standardized research and development
and The Finance Department is responsible for research and development budget review, management of re-
processes and controllable risks.
coordinating search and development reserves, accounting of research and development expenses and special audits.
In addition, the Company provides support for research and development through standardized documentation and special
departments The Enterprise Management Department is responsible for human resource allocation, organization and
financial systems. Standard documents such as the Project Proposal and the Acceptance Report are generated throughout
implementation of performance appraisal for research and development personnel and handling of ap-
the research and development process as the basis for decision making and traceability, and multi department review meet-
peals.
ings are set at key nodes. The Company strictly implements the Research and Development Reserve System and the Man-
The Intellectual Property Office centrally manages the Company’s intellectual property, responsible for ap-
agement System for Accounting of Research and Development Investment to ensure continuous investment of funds, and
plication, maintenance, protection and daily management of patents and other intellectual property.
conducts strict budget management, independent accounting and audit supervision for projects.
Intellectual Property Protection and Research and Development Incentives
Indicator Name Unit 2025 2024 The Company has established the Intellectual Property Management System, the Performance Appraisal Measures for Re-
search and Development Personnel and the Project Compensation Management System for Core Technical Personnel to pro-
Total Number of Research and Development Personnel Persons 163 172 tect innovation and stimulate vitality. Intellectual property management covers the entire process from invention disclosure
to application and protection, clarifies the ownership of service inventions, and agrees on ownership in advance in cooper-
Below Bachelor’s degree Persons 72 80 ation. Performance incentives implement hierarchical assessment and link results with salary and promotion and establish
multi-level special rewards covering innovation achievements and project returns.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Likelihood Time Impact
Opportunity Financial Degree of
Key Performance Description of range of on value Response measures
type impact impact
occurrence impact chain links
The Company has passed the GB/T 29490-2013 Intellectual Property Management System Certification.
The emergence of
new technologies
Industry, Academia and Research Cooperation and research institutions
opens up new markets
to increase efforts in new
The Company has established a deep cooperation relationship with South China University of Technology, jointly building a for enterprises. By Cost
technology research and
Market improving efficiency reduction,
postdoctoral research workstation and carrying out a collaborative innovation model of “platform co construction, talent co Medium High Medium Upstream development;
opportunity and expanding market revenue
cultivation, technology co research and achievement sharing”, promoting the technological research and development and share, it drives rapid increase
technical talent and build
talent cultivation of high-end electronic specialty gases. In 2025, the Company successfully completed its first postdoctoral business growth and
professional teams to
creates competitive
research project and developed a new montmorillonite based composite porous gas purification material, filling the techno- support innovation.
advantages.
logical gap of the Company in the field of high end gas purification materials; the research on gas adsorption and purification
based on MOF materials conducted by the postdoctoral researcher in station has achieved phased progress, which is expect-
ed to break through the limitations of selectivity and efficiency of traditional gas separation technologies and provide a new
solution for the preparation of high purity gases.
Strategy
Impact, Risk and Opportunity Management
The Company continuously strengthens its research and development system by gaining insight into technological trends,
grasping market dynamics and responding to policy orientations. At the same time, the Company is committed to building a To effectively manage risks related to research and development innovation, the Company conducts regular identification
high-quality research and development team and optimizing innovation management mechanisms, providing strong momen- and assessment of risks and opportunities based on its actual operating conditions. By comprehensively reviewing potential
tum for sustainable development. risk factors in the research and development process, the Company implements dynamic tracking and real time monitoring of
Likelihood Degree Time Impact major risk events.
Opportunity Financial Response
Description of of range of on value
type impact measures
occurrence impact impact chain links
Stage Management measures
Te c h n o l o g i c a l i t e r a t i o n , 1. Continuously launch
product upgrading, or new technologies
intensified competition and products that
may lead to a decline in the adapt to changes Identify potential risks related to technology, market, capital and talent that may be
Company’s market share in market demand Risk identification faced in the research and development innovation process through internal discussions,
and user base, research and to maintain the
development investment Revenue Company’s existing
expert consultation and industry benchmarking.
Core
exceeding expectations decrease, market position
competitiveness High High Medium Upstream
or progress falling short cost and competitive
risk
of expectations, research increase advantages;
and development failure, 2. Continuously Assess the degree of impact of risks on research and development objectives, progress,
Risk assessment
failure of technologies to be increase investment cost and quality.
transformed into products in research and
or industrialized, elimination development to
of key equipment, and ensure product
vicious competition. competitiveness.
Through regular inspections, data analysis and key indicator tracking, grasp the status
With the development of Risk monitoring of risks in the research and development process in real time, adjust response measures
the specialty gas industry, according to actual conditions, and ensure the smooth advancement of projects.
Provide competitive
competition for talent within
compensation
the industry is intensifying.
and incentives to
Talent shortage Once core technical Revenue
High High Medium Upstream enhance the sense of
risk personnel are lost, it will decrease
belonging of research Formulate research and development standards and processes, clarify risk control nodes
have an adverse impact
and development and reduce the probability of risk occurrence;
on the Company’s product
personnel. Risk management
research and development Establish a risk management system, strengthen risk awareness of managers at all levels
and stable development.
and implement risk management.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Indicators and Targets Scientific Research Projects and Industry Recognition
Undertake the national major science and technology project “02 Special Project” top-
Key indicators Unit 2025 2024 2023 Undertaking national
ic: Research and Development and Pilot Testing of High Purity Trifluoromethane.
and provincial major
CNY Ten Undertake the Guangdong provincial strategic emerging industry regional cluster de-
Research and development investment
thousand
velopment pilot project: research and development task of “specialty gases for flat
projects
panel displays”
Proportion of research and development
investment to main business revenue
% 3.24 3.51 3.55
Cumulative number of authorized
patents
Items 270 243 213 Selected for four consecutive sessions in 2017, 2019, 2021 and 2023 as one of the “Top
Cumulative number of authorized the list.
Authoritative
invention patents
Items 44 37 32 industry honors
The Company actively leads or participates in the formulation of domestic and inter-
national standards, having cumulatively led or participated in 67 standards, including
Cumulative number of authorized utility
model patents
Items 223 203 178 multiple national standards focusing on gases for the electronic industry, 6 industry
standards, 1 international standard and 11 group standards.
Cumulative number of trademarks Items 48 51 51
Achievements and Impact
Collaborative Win-Win, Resilient Supply Chain Assurance
Breakthroughs in Core Technologies and Products
Governance
The Company has more than 20 products successfully supplied to advanced inte-
Supply capacity of The Company has established a supply chain management structure with the Procurement Department as the core and multi
grated circuit production lines such as 14nm and 7nm.
high-end process department collaboration and has formulated the Procurement Control Procedure to institutionalize the management struc-
Some fluorocarbon products and hydrides have successfully entered the world’s
products ture and corresponding mechanisms, ensuring standardization, traceability and continuous optimization of supply chain gov-
most advanced 5nm process and continue to expand the scope of application.
ernance activities.
Independently developed multiple rare mixed photolithography gases such as Ar F Ne, Core coordination and execution level
Kr Ne, Ar Ne, Kr F Ne and Ar Ne Xe.
Leading position
The only gas company in China that has achieved simultaneous certification Procurement Department: As the functional and leading department of supply chain management, it is fully responsi-
in the field of
of multiple rare mixed photolithography gases, including 2 containing trace flu- ble for the entire process including supplier development, evaluation, selection, performance evaluation, daily manage-
photolithography
orine, by ASML in the Netherlands and GIGAPHOTON Corporation in Japan. ment, contract negotiation and signing, and procurement plan execution.
gases
Relevant products have been widely applied in multiple semiconductor factories
both domestically and internationally.
Cross functional collaborative review level
Focus on high-end specialty gases such as high purity propylene, high purity acety- User Department/Demand Department (Production Department and Research and Development Center): Propose
Breakthroughs procurement requirements and participate in confirmation of technical specifications, sample verification and product
lene, high purity chlorine trifluoride, electronic grade hydrogen bromide and
in key“bottleneck” stability tracking.
electronic grade disilane, and carry out core technology research to break over-
technologies Quality Management Department/Quality Inspection Office: Responsible for supplier quality system audits, incoming
seas monopolies.
material inspection and formulation and confirmation of product quality standards.
HSE Department: Responsible for reviewing suppliers’ qualifications and performance in safety and environmental pro-
Created in the industry the “key detection technology for trace fluorine in ex- tection, especially for hazardous chemicals.
Original testing
cimer laser gases”, successfully solving long standing testing challenges such as Finance Department: Participates in assessment and control of supplier payment risks.
technologies
heavy components and fluorine content at percentage concentration. Logistics Department: Participates in coordination and management of transportation and delivery.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Strategy
Sustainable development of the supply chain has become a core strategic support for the Company’s stable operations. Based on forward looking industry trends, the Company strictly follows policy and regulatory requirements, systematically reviews business needs and potential
risks at each stage of the supply chain and optimizes resource allocation by building a full process management system. This effectively enhances supply chain coordination efficiency and risk resistance capability, provides reliable support for stability of production and operation,
and shapes differentiated sustainable development advantages.
Time range of Impact on value
Risk type Description Financial impact Likelihood of occurrence Degree of impact Response measures
impact chain links
Suppliers fail to deliver required materials system and implement graded management.
Production shutdown
such as gases and packaging materials 2. Define acceptance standards and responsibilities through
Supplier performance losses, emergency Short term to Procurement,
on time, with required quality and Medium to high High the Procurement Control Procedure, allowing rejection and
risk procurement costs, breach medium term production, delivery
quantity, or production interruption claims for unqualified materials.
compensation
occurs due to their own reasons. 3. Establish a list of alternative suppliers for key materials to
reduce dependence on a single source.
such as MSDS and safety labels and quality certification
Materials provided by suppliers have documents.
quality issues such as substandard Rework and scrap losses, Procurement, 2. The Quality Management Department or quality inspection
Raw material quality Short term to long
purity and excessive impurities, quality costs, customer Medium High production, quality office conducts strict incoming inspection and batch sampling
risk term
affecting performance and reliability of claims control, sales inspection.
the Company’s final products. 3. Clearly define quality requirements in the Procurement
Contract and stipulate liability for compensation for quality
issues
and Clean Commitment Letter, setting a high penalty of CNY
Suppliers engage in corrupt practices
Full process 1 million for breach.
such as commercial bribery and
Supplier compliance Fines, litigation costs, including 2. Clearly prohibit any form of rebates, gifts and other
benefit transfer during cooperation or Low Extremely high Long term
and integrity risk qualification losses procurement, improper benefits.
violate environmental protection and
logistics and finance 3. Establish a two-way reporting mechanism to encourage
production safety regulations.
suppliers to supervise improper conduct of the Company’s
employees.
Safety accidents such as leakage, logistics companies, vehicles and escorts with hazardous
Hazardous chemical explosion and traffic accidents occur Accident compensation, chemical transportation qualifications.
Logistics, HSE,
transportation and during transportation of hazardous property losses, Medium High Immediate 2. Require transportation personnel to receive professional
production
safety risk chemicals such as flammable, toxic environmental penalties training.
and corrosive gases. 3. The HSE Department participates in reviewing suppliers’
safety transportation capabilities.
Global or regional supply interruption high purity raw gases.
of key raw materials or equipment Order default, revenue 2. Actively carry out independent research and development,
Supply interruption Procurement,
caused by natural disasters, wars, loss, decline in market Low Extremely high Long term overcome “bottleneck” technologies and realize domestic
risk production, sales
geopolitical conflicts or supplier share substitution.
bankruptcy. 3. Develop alternative suppliers through multiple channels to
diversify regional and supply source risks.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Impact, Risk and Opportunity Management Full Life Cycle Management of the Supply Chain
To effectively reduce various risks in the supply chain, the Company has established a systematic risk management mecha- Supplier Selection
nism. Through precise identification of potential risks, scientific assessment of their impact, dynamic monitoring of risk trends
Before initiating the procurement procedure, the Company conducts basic reviews of suppliers in terms of qualification le-
and implementation of targeted management measures, the Company effectively ensures the safety and stability of the
gitimacy, performance capability and reputation in accordance with the Procurement Control Procedure. In addition to basic
supply chain and provides solid support for continuous and stable business operations.
qualifications, the Company places key focus on suppliers’ performance in quality management systems, HSE management
systems, social responsibility and environmental protection.
Stage Management measures
Identify risks that may arise at each stage of the supply chain including procurement, Supply chain procurement selection process
Risk identification production, logistics and sales, such as raw material supply, price fluctuations, logistics
interruptions and changes in market demand.
New Supplier Selection
The Company conducts annual supplier performance evaluation, covering five aspects
Risk assessment
including product quality, delivery time, service, price and HSE performance.
Supplier Basic Investigation
Track risk changes in each stage of the supply chain in real time, regularly review the
Risk monitoring operating status of key supply chain nodes such as suppliers and logistics providers, and
promptly identify potential risks.
Sampling
Regularly summarize risk management experience, optimize supply chain risk
Risk management management systems and processes, adjust strategies in a timely manner and enhance
risk resistance capability.
Sample Confirmation
NG
Delivery Time
Indicators and Targets Distribution Category OK Production Category
Price
Key indicators Unit 2025 2024
Small Batch Use
Quality
Materials and material related suppliers Companies 1,568 1,348
OK
Number of domestic suppliers Companies 2,018 1,334 Evaluation Key Points
Qualified Supplier
Number of overseas suppliers Companies 15 14 Registration
Evaluation Steps
Supplier assessment completion rate % 100 100
Supplier Assessment Evaluation Principles
Proportion of suppliers with quality management
system certification
% 100 100 NG OK
Proportion of suppliers with environmental management
system certification
% 100 100 Improvement Within a
Continue Procurement
Specified Time Limit
Proportion of suppliers with occupational health and
safety management system certification
% 100 100
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Supplier Classification
Pursuit of Excellence, Striving for Perfection
Huate Gas classifies suppliers into the following four categories according to the materials and services they provide and
adopts different selection standards for different types of suppliers. Governance
Quality is the lifeline of sustainable development of an enterprise and the core manifestation of fulfilling responsible commit-
Supplier type Material category Selection method
ments to customers, employees and society. Huate Gas deeply integrates excellent quality management into the entire pro-
Issue the New Supplier Investigation and Evaluation Form and the cess of corporate governance and operations and has established a quality governance system with clear rights and respon-
Supplier Environmental Condition Investigation Form to new suppliers, sibilities, full participation and continuous improvement. This system strictly follows international standards such as ISO 9001
requiring them to complete the forms strictly in accordance with the and runs through all levels of strategy, management and execution from top to bottom, forming a coordinated and efficient
requirements and provide the qualification supporting documents operating mechanism.
required by the forms;
Organization or
Production raw materials, The purchaser verifies the returned New Supplier Investigation and Role Responsibilities and content
position
packaging materials, Evaluation Form, completes the New Supplier Preliminary Review and
Category A
valves and distributed Assessment Form, and submits it to relevant departments for approval; As the ultimate responsible person for quality management, responsible for
products After approval, the Quality Management Department organizes a written approving and issuing quality policies and quantifiable strategic objectives, ensuring
General manager
review or on-site audit; resource allocation, and presiding over management reviews to promote continuous
Top leadership
The Procurement Department obtains supplier samples and submits them improvement.
and strategic
to relevant departments for testing and trial production, and the results
Management
decision- Directly reports system performance to the top management, responsible for
are fed back to the Quality Management Department, quality inspection
representative
making level establishment, implementation, maintenance and improvement of the quality
office, Procurement Department and research and development center.
(concurrently held
management system, and promotes enhancement of quality awareness among all
by the general
The purchaser reviews the supplier’s business qualifications; employees.
Equipment, spare parts manager)
Category B The user department confirms the specifications of required materials to
and reagents
ensure they meet usage requirements. As the functional and core management department of quality governance,
undertakes system coordination responsibilities, including organizing internal audits and
Quality
Selection of logistics suppliers: business qualification review, including but management reviews, supervising nonconforming product processes, presiding over
Management
Service categories such not limited to business license and road transport permit for hazardous Functional major material review board (MRB) meetings, promoting closed loop management of
Department
as outsourced logistics, chemicals; management corrective and preventive measures, monitoring and analyzing quality objectives, and
Category C and core
testing, certification and Selection of metrology and testing service suppliers: business qualification coordinating management system documentation.
metrological calibration review, including but not limited to business license, recognition of supervision
As the core execution unit of quality inspection, responsible for full process inspection
metrology and testing capability and system certification. level
Quality Inspection from incoming materials to process and finished products, formulating and implementing
Office inspection standards, managing testing equipment, and conducting preliminary
Auxiliary materials, office The purchaser is not required to conduct qualification review for this
confirmation and isolation of nonconforming products.
Category D labor protection supplies type of supplier and may make purchases through online procurement or
and hardware accessories direct store procurement. Functional The Production Department is responsible for process control, the Procurement
departments Department manages supplier quality, the Sales Department handles customer
perform their feedback and recalls, the Logistics Department ensures warehouse quality, and the
Full respective duties research and development center ensure design quality.
participation
For major or complex nonconforming products, the Quality Management Department
Supplier Evaluation and cross
Special leads the temporary establishment of a cross departmental material review board (MRB)
functional
At the beginning of each year, Huate Gas conducts annual performance evaluations of existing qualified suppliers. For Cat- collaborative including production, procurement, sales and technical departments to jointly review
collaboration
egory A suppliers with supply volume of more than 3 batches in the previous year, the Company adopts the Annual Supplier mechanism and decide on disposal plans, reflecting the principles of collective decision making and
level
Evaluation Form and jointly with relevant departments conducts a comprehensive evaluation of their one-year supply perfor- shared risk.
mance. The Company comprehensively considers suppliers’ annual performance evaluation results and annual system audit Support function The Human Resources Department ensures that employees possess the competencies
rating levels, and dynamically adjusts the Qualified Supplier List. guarantee required to fulfill quality responsibilities through training and capability assessment.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Strategy
Key Performance Huate Gas is fully aware of the importance of product quality and safety to the Company’s development. Based on relevant
regulations and industry standards, and in combination with the actual conditions of the Company, it identifies and assesses
The Company has passed ISO 9001 Quality Management System Certification. the impacts, risks and opportunities related to product quality and safety, and formulates response measures and manage-
ment systems to ensure that relevant risks remain controllable.
Likelihood Time Impact on
Financial Degree of
Quality Training Risk type Description of range of value chain Response measures
impact impact
occurrence impact links
The Company continuously carries out quality awareness
training, effectively improving the quality awareness and
professional skills of all employees through the combina-
tion of normalized professional training and thematic activ- material, process and
ities. finished product inspections
in accordance with the
Incoming Inspection Control
Products are found Procedure and the Finished
during production, Product Inspection Control
Normalized professional This may lead to
inspection or Procedure.
“Quality Month” special activities product rework,
skills training customer use to fail 2. Establish isolation and
Product scrapping, returns Short term Production,
to meet specification handling procedures for
nonconformity and compensation Medium High to medium quality
requirements, such as nonconforming products
“Quality Month” risk for customer losses, term control, sales
System and process substandard purity, in accordance with the
The Company has established a sys- thereby increasing
special activities training excessive impurities Nonconforming Product
quality costs.
tematic training mechanism covering or damaged Control Procedure, and
packaging. determine disposal plans
management to frontline key positions
The Company organized multi-level through MRB review.
The Company emphasizes effective
by formulating and implementing the 3. Promote corrective and
and highly interactive “Quality Month” implementation of management sys- preventive actions (CAPA)
activities in September 2025, bringing tems and organizes targeted training to prevent recurrence of
Quality Management Department. problems.
quality culture to a new level. Led by for newly revised or key processes in a
The training content includes basic
senior management, through compa- timely manner. For example, focused
processes, internationally recognized
ny level and workshop level graded interpretation of the newly revised
core quality tools and practical opera-
training, knowledge competitions cov- Process Inspection Management
tion of advanced testing technologies,
ering two locations, multiple special Measures is conducted for relevant
and effectiveness is ensured through
inspections and rectifications, and the personnel, clarifying inspection plans
diversified assessments such as oral 1. Conduct regular internal
establishment of QCC groups to solve and graded rectification time limit re- audits to check system
examinations, written tests and practi-
practical production problems, a full quirements, ensuring that employees compliance in accordance
cal operations, aiming to systematical- Quality management with the Internal Audit
chain promotion from awareness ad- fully understand and strictly imple-
ly and continuously enhance the pro- system documents This may lead to Control Procedure.
vocacy, knowledge dissemination to ment new process control standards, are not effectively failure in external 2. Management reviews
fessional capabilities of all employees
practical improvement was achieved, implemented, or audits such as ISO are chaired by the general
thereby strengthening execution and
and strengthen the talent foundation internal audits certification, loss Full manager to evaluate
effectively creating a strong atmos- binding force of the system and en- Risk of quality Extremely
and management of market access Low Long term process (all system performance
of quality management. system failure high
phere of “everyone values quality and suring accurate transmission of man- reviews become qualification, and departments) and decide improvement
mere formalities, major reputational directions in accordance
everyone creates quality”. agement system requirements. resulting in the and economic with the Management
system operating out losses. Review Control Procedure.
of control. 3. Strengthen document
management and
record control to ensure
traceability.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Likelihood Time Impact on Impact, Risk and Opportunity Management
Financial Degree of
Risk type Description of range of value chain Response measures
impact impact
occurrence impact links
To reduce risks that product quality may bring, the Company has formulated the Control Procedure for Determining and Re-
sponding to Risks and Opportunities, which clearly stipulates the relevant management procedures and the responsibilities of
Monitoring and
Measurement Control
Incorrect release Procedure to ensure that Stage Management measures
of nonconforming all testing equipment is
Inaccurate inspection
products may lead to regularly calibrated and
results are caused
Risk of customer complaints kept under control. Clarify needs and External factors: laws and regulations, technological innovation, market
by inaccurate testing
insufficient and recalls, while Quality control, 2. Train and assess the
equipment, expired Low High Immediate expectations of stakeholders competition, market demand and other aspects
testing incorrect rejection production competence of testing
calibration or operator
capability of conforming personnel to ensure related to internal and Internal factors: Company values, management documents, professional
errors by testing
products may cause that they possess
personnel. external factors knowledge, Company performance and other aspects
unnecessary waste the corresponding
and delays. qualifications.
supervision of the testing
process. departments based on operating conditions, record the identification results in
the Risk and Opportunity Assessment and Analysis Form, and submit them to the
Quality Management Department
The Quality Management Department consolidates the lists of risks and
Identify and determine risks
opportunities submitted by each department and reports them to the management
Product Recall Control representative
Procedure to clarify recall From the Company level, the management representative comprehensively
procedures and division
considers various internal and external factors and stakeholder requirements, and
This may generate of responsibilities.
Quality issues arise
high recall costs 2. Respond rapidly to in combination with the risks and opportunities identified by each department,
Customer after product delivery,
and compensation Sales, customer customer complaints, determines the risks and opportunities to which the Company needs to respond
complaint and triggering customer Extremely
expenses, and Low Long term service, conduct in depth root
product recall complaints and even high
seriously damage production cause analysis, and take
risk requiring the initiation
brand reputation and corrective measures. Formulate response
of product recalls.
market share. 3. Use the “Cylinder Adjust response strategies in a timely manner according to identification results to
Barcode System” to measures for risks and
improve risk resistance capability
achieve full process opportunities
traceability and quickly
locate affected batches.
Timely update results of risk When the management system or internal and external factors affecting the
and opportunity identification Company’s management system change, update the assessment results and
and response response measures for risks and opportunities
Indicators and Targets
Target achievement
Indicator name Target value 2025
status
Overall customer satisfaction ≥97% 97.90% √ Compliant
Timely response rate to customer
complaints
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Target achievement
Indicator name Target value 2025
status
Customer satisfaction ≥95% 95.81% √ Compliant
Incoming material qualification rate ≥99.3% 99.79% √ Compliant
General gas production qualification rate ≥99.99% 99.994% √ Compliant
Specialty gas production qualification rate ≥99.9% 99.88% √ Compliant
Huate Gas has been awarded the title Huate Gas has been recognized by Silan
Employee turnover rate ≤3% 1.22% √ Compliant of “Excellent Supplier” Semiconductor as an important strategic partner
in the field of material supply
On time delivery rate ≥100% 100% √ Compliant
Customer Complaint Management
Delivery errors 0 0 √ Compliant
The Company always regards customer feedback as a valuable resource for continuous improvement. To this end, it has
Nonconforming product disposal rate 100% 100% √ Compliant established a customer complaint handling mechanism based on the principles of “Rapid Response, Accurate Traceability,
Closed Loop Improvement”. This mechanism ensures that every complaint is handled seriously and efficiently, aiming to
transform customer issues into practical actions for improving product and service quality.
Customers may submit The Quality Management Handling measures strictly fol- All complaint records and
complaints through des- Department conducts sys- low the Nonconforming Prod- corresponding evidence of
ignated sales personnel tematic traceability based uct Control Procedure. Based corrective and preventive ac-
on the Product Identification
Dedicated Service, Customer Satisfaction or other channels. Upon on investigation results, return, tions are centrally archived by
receipt of a complaint, the a n d Tr a c e a b i l i t y C o n t r o l replacement or other corrective designated personnel. These
responsible department Procedure, using cylinder measures are implemented to records serve not only as proof
immediately collects key in- numbers and production and ensure compliant handling and of closed loop handling but
Responsible Marketing inspection records to quickly customer satisfaction. also as key inputs for driving
formation such as product
name, cylinder number and identify the problem stage continuous optimization of the
The Company strictly implements the Label Management Safety Operation Procedure to ensure that product label informa-
production date, laying the and root cause. management system and pre-
tion is complete, clear and firmly affixed in compliance with national standards, and applies prominent markings to noncon-
foundation for subsequent venting recurrence of issues.
forming products to fulfill the obligation of safety disclosure to customers, ensuring full chain traceability of product informa-
traceability.
tion and safe use. These two measures complement each other and jointly build a customer trust system based on integrity
and compliance. Systematic Standardized
quality problem
traceability handling
Customer Service Management
Centralized Closed loop
acceptance documentation
Huate Gas adheres to the philosophy of “Creating Value for Customers and Improving with customers together”, and fully
and information and continuous
integrates the core value of “Customer Orientation” into the service system. Guided by the “Customer Service Control Pro-
collection improvement
cedure”, the Company systematically establishes a closed loop management mechanism covering presales and after sales
stages. Through key measures such as proactively identifying customer needs, ensuring accurate order fulfillment, establish-
ing efficient communication and training mechanisms, and improving customer file management, the Company provides full
lifecycle support for customers. In terms of organizational support, the Sales Department is clearly designated as the respon-
To improve the efficiency of complaint handling, Huate Gas has established a digital customer complaint handling system
sible department to coordinate customer feedback, and the Quality Management Department provides professional technical
and strictly supervises and handles product quality complaints in accordance with the Customer Service Control Procedure.
support and quality traceability, thereby ensuring the effective fulfillment of service commitments.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Information Protection, Safeguarding Assets
Management System
The Company takes the IT Information Security Management Measures as the core to establish a comprehensive informa-
tion security institutional system and has issued supporting special documents such as the IT Core Application Data Backup
Method Description and the IT Major Emergency Overall Response Plan, clarifying the basic principles, technical standards
and emergency procedures for information security. In terms of organizational support, a three-level management structure
of “General Manager decision making, IT Manager overall coordination, and Department Heads implementation” has been
established to ensure that responsibilities are effectively implemented at each level. The IT Department, as the centralized
management department, is staffed with 8 full time personnel and is fully responsible for the construction and daily opera-
tion of the information security system.
Digital Customer Complaint Handling Platform of Huate Gas In terms of compliance certification and technical support, the Company’s information security system has been recognized
by national authorities, with outstanding key performance. The Company has completed the filing for industrial internet se-
curity classification and grading management and has been rated as a Level 3 connected industrial enterprise, meeting the
basic national security requirements for large scale chemical manufacturing enterprises. At the same time, the QAX Tianqing
Endpoint Security Management System deployed by the Company operates efficiently, with excellent core protection perfor-
mance data, building a solid and reliable technical defense line for business operations.
Customer Satisfaction Management
The Company has established a normalized customer satisfaction survey mechanism to systematically understand and con-
Key Performance
tinuously improve customer experience. The Company distributes the Customer Satisfaction Survey Form to customers on a
regular basis through customer service personnel or sales staff and requires customers to return the form with signature and The virus detection and removal rate of the security management system reached 100%, the number of
seal within three weeks to ensure the authenticity and validity of data. The survey comprehensively covers two dimensions:
risk terminals and daily alerts were both
product quality and sales service. Based on the survey results, the Company conducts in depth analysis and requires relevant
departments to prepare special reports and implement improvements for unsatisfactory or low scoring items, thereby trans-
forming customer feedback into key inputs for optimizing the quality management system and driving continuous service
improvement.
Key Performance
Overall customer satisfaction reached 96.54%, and comprehensive satisfaction reached 98.27%.
The dissatisfaction rate for all sub items was 0%.
The QAX Tianqing Endpoint Security Management The Company has completed the filing for industrial internet
System deployed by the Company operates efficiently, security classification and grading management and has
with excellent core protection performance data been rated as a Level 3 connected industrial enterprise
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Key Performance Key Performance
During the reporting period, no data security incidents occurred. During the reporting period, no incidents of infringement of customer privacy or leakage of customer information occurred.
Defense in Depth
Full Participation
To build a solid and reliable data security defense line, the Company has established a defense in depth system covering
technology, management and emergency response. Through systematic measures, it ensures the confidentiality, integrity
The Company attaches great importance to the development of personnel security awareness. During the reporting period,
and availability of all data assets, including customer information, throughout the entire lifecycle, and guarantees the conti-
the IT Department organized 2 special cybersecurity training sessions, covering employees from multiple departments includ-
nuity of business operations.
ing HR, finance, HSE, securities and business. The training content included information security systems, terminal and email
security, virus prevention and emergency response. The effectiveness was evaluated through written tests, oral tests and
Implement a three-level backup strategy of “same machine + different machine + off
practical exercises, effectively enhancing the cybersecurity awareness and protection capabilities of all employees and con-
site” to conduct combined backups of core business data;
solidating the “human defense” foundation of the Company’s information security.
Data security Manage data by classification according to importance, with a recovery time for critical
protection data of ≤4 hours;
All system permissions are centrally managed by the IT Department, strictly following
the principle of least privilege and implementing a strong password policy.
The network is divided into areas such as internet gateway, office network, production
network and data center according to functions, with logical isolation, and firewalls, inter-
net access behavior management and endpoint security systems are deployed at bound-
Network and
aries;
physical security
The server room is equipped with video monitoring, UPS, fire extinguishers, temperature
and humidity monitoring and power outage alarm systems to achieve all weather moni-
toring and protection of the physical environment.
Detailed emergency response plans are formulated for six categories of major events
Emergency response mech- such as server downtime and database damage;
anism A closed loop process of “identification, response, review and summary” is established to
ensure rapid response and continuous improvement.
Privacy Protection
Cybersecurity special training attendance sheet
To ensure the security and confidentiality of customer information, the Company, based on incorporating it into the unified in-
formation security framework management, has established a specialized protection mechanism strengthened by“institutional
constraints and legal contracts”. Customer privacy data, as core information assets, is strictly controlled under the IT Informa-
tion Security Management Measures, with clear prohibition of unauthorized handling by employees and implementation of Key Performance
internal controls such as permission revocation. At the same time, by signing legally binding Confidentiality Agreements with
key customers, the Company clearly defines nonpublic information provided by customers as confidential, thereby solidifying
strict protection obligations and breach liabilities in contractual form and achieving closed loop protection from internal con- During the reporting period, the Company conducted
trol to external commitment.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Harmonious Coexistence,
Creating a Better Life
Together
Huate Gas regards employees as its most valuable asset and is committed to
jointly building a safe and warm home. We adhere to standardized employment
practices and safeguard employees’ fundamental rights and interests through
comprehensive systems. We respect diverse values and foster an inclusive
and equal workplace environment. We focus on employee development,
continuously enrich the talent structure, establish clear career development
pathways, and empower every employee through systematic training. At the
same time, we strictly uphold the bottom line of occupational health and safety,
systematically identify and manage related risks, and strive to achieve a “zero
harm” working environment. In addition, the Company actively gives back to
society, fulfills its corporate citizenship responsibilities through practical actions,
and works with all parties to build a harmonious future.
Topics covered in this section United Nations Sustainable Development Goals (SDGs) corresponding to this section
Protection of employees’ legitimate rights and interests, employee training and development, occupational health and safety,
social contribution
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Standardized Employment, Fulfilling Responsibilities Key performance Unit 2025 2024 2023
The Company strictly complies with the Labor Law of the People’s Republic of China and the Labor Contract Law of the Peo-
Number of labor discrimination incidents Cases 0 0 0
ple’s Republic of China and other domestic laws and regulations and refers to international labor standards to establish a
systematic compliant employment governance system and management framework, aiming to safeguard employees’ legiti- Number of ethnic minority employees Persons 30 29 29
mate rights and interests and build a fair, safe and dignified working environment.
Number of employees with disabilities Persons 9 8 8
Establishing a Governance Structure to Ensure Accountability Implementation
The Company has established a clear structure of responsibilities and authorities to ensure the effective implementation of
employment policies. The Board of Directors directly supervises key matters such as compensation fairness through the Re-
Male 60 years old and above 30 years old and below
muneration and Appraisal Committee. at the execution level, the Human Resources Department, as the centralized depart-
ment, leads the formulation and implementation of a series of systems such as the Employee Handbook, the Recruitment Female 1017 Persons 3 Persons 256 Persons
Management System and the Appeal Management Measures, and collaborates with various business departments through 226 Persons
standardized processes to ensure consistency and effectiveness in policy implementation.
Improving Core Systems to Consolidate the Foundation of Rights and Interests
Gender Age
The Company translates its commitments to employees into specific systems and integrates them into daily management. structure structure
Upholding relevant principles, the Company prohibits any form of discrimination in recruitment, compensation and promotion
through the Anti-Discrimination Control Procedure and adheres to the principle of equal pay for equal work. To ensure free-
dom of employment, the Company implements the Freedom of Employment Choice Control Procedure and the Control Proce-
dure for Prohibiting the Use of Child Labor and Minors. These policies, together with provisions prohibiting harassment, apply
to all formal employees and interns. In addition, the Company protects employees’ right to rest through the Working Time
Secondary school Bachelor’s degree
Management Procedure and ensures fair and lawful salary distribution in accordance with the Compensation Management Others
and below and above
System.
Standardizing Management Processes to Achieve Full Cycle Protection
Transportation
The Company has established management processes covering the entire employee lifecycle to implement systems in prac- 325 Persons
tice. In the recruitment stage, the Recruitment Management Procedure is strictly implemented to conduct open recruitment Education Job
and dual evaluation, ensuring fairness in hiring and achieving a 100% labor contract signing rate. During the employment re- structure structure
Administration
lationship, salary adjustments follow a rigorous application and approval process, and a mediation committee is established
in accordance with the Labor Dispute Management Measures to build a multi-level communication and dispute resolution 74 Persons
mechanism. The Company encourages employees to submit suggestions or appeals through established channels and imple-
ments corrective procedures for violations, thereby achieving continuous supervision and improvement of the management Finance Sales
Junior college
system.
Key Performance
During the reporting period, no labor discrimination incidents occurred.
During the reporting period, no incidents of child labor misuse, forced labor or harassment occurred.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Respecting Rights and Interests, Promoting Fairness Key indicators Unit 2025 2024 2023
Labor contract coverage rate % 100 100 100
Compensation and Benefits
Five insurances and one housing
Compensation Performance fund coverage rate
% 100 100 100
CNY ten
The Company adheres to the principles of fairness, competitiveness, incentive orientation and legality in compensation man-
Employee Benefits Expenditure
agement. To standardize compensation management, it has formulated the Compensation Management Regulations based thousand
on its actual conditions. The Company has established a Remuneration and Appraisal Committee responsible for guiding the
formulation of compensation adjustment policies and management measures. The Corporate Management Department, as Employee Care
the implementing and controlling body of the Remuneration and Appraisal Committee, is responsible for executing compen-
To enrich employees’ spare time life, the Company organizes various cultural and sports activities such as basketball compe-
sation management measures and policies.
titions and hiking activities, enabling employees to enhance relationships and strengthen cohesion through participation. The
The Company has established an incentive-based compensation system and set up a Remuneration and Appraisal Commit- Company has also established a reading room to provide employees with a space for reading and self-improvement.
tee specifically responsible for reviewing salary adjustments. The salary adjustment review process follows strict procedures
When employees encounter sudden misfortune or family difficulties, the Company organizes fundraising activities to sup-
and standards. The Remuneration and Appraisal Committee adjusts salaries based on factors such as employee perfor-
port them in overcoming difficulties. In addition, the Company pays attention to the education of employees’ children with
mance, the Company’s operating conditions and market compensation levels, thereby ensuring the fair and orderly operation
non-local household registration, actively participates in points-based evaluation activities organized by the government and
of the compensation system.
schools and strives to properly address children’s school enrollment issues.
Employee salary structure of Huate Gas
Education or
Performance professional
salary Seniority title allowance
Basic salary Others
salary
Welfare and Protection System
The Company attaches great importance to employee welfare protection, strictly complies with national laws and regula-
tions, and contributes to social insurance for employees in accordance with the law, including basic pension insurance, medi-
cal insurance, work-related injury insurance, unemployment insurance, maternity insurance and housing provident fund, com-
prehensively ensuring that employees enjoy a complete welfare protection system. At the same time, the Company provides
supplementary benefits to enhance employee job satisfaction, loyalty and overall well-being, enabling employees to work
with peace of mind and grow together with the Company. Hiking and barbecue activity Company annual meeting
Welfare system of Huate Gas
Statutory benefits Various types of leave Accommodation Meal allowance
Five insurances Statutory holidays, work-related Provision of Meal standards are announced based
injury leave, marriage leave, apartment style on changes in price levels, and a 50%
bereavement leave, maternity dormitories subsidy is provided based on actual
leave, paternity leave and others monthly meal expenses of employees
Annual travel Annual physical examination Private vehicle for public use allowance
Annual travel activities are A free annual physical examination Allowances are provided to employees who
organized, with the Company is provided for employees to focus use private vehicles for public purposes
bearing the relevant costs on their physical and mental health Basketball competition Youth networking and exchange event
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Democratic Participation Key indicators Unit 2025 2024 2023
Democratic Management Number of employees enjoying maternity leave Persons 5 12 6
Huate Gas respects employees’ democratic rights. In accordance with the Trade Union Law of the People’s Republic of Chi-
Return rate of employees after maternity leave % 100 100 83.33
na and the Constitution of the All-China Federation of Trade Unions, it has established a trade union organization and con-
venes employee representative congresses. The trade union is committed to safeguarding employees’ legitimate rights and
interests, actively participating in corporate democratic management, and implementing democratic supervision. It guides
employees to participate in enterprise development and complete production and operation tasks, carries out employee edu- Empowering Growth, Sharing the Future
cation, improves employee quality, mobilizes employee enthusiasm, and promotes enterprise development.
To adapt to the rapid development of the gas industry and the Company, Huate Gas takes technological innovation as the
core driving force and talent as the foundation of development, advocates mutual growth of employees and the Company,
Employee Communication
and has formulated comprehensive employee training and career development plans, including but not limited to reserve
Huate Gas attaches importance to employee communication and exchange. In order to better safeguard employees’ rights talent development, management cadre training and MBA further education. Through progressive talent cultivation and com-
and interests and promote communication between the Company and employees, the Company adopts various methods petitive selection mechanisms, the Company provides employees with broad development platforms and space.
such as setting up suggestion boxes and feedback forms, conducting employee satisfaction surveys and organizing employ-
Enriching Talent Structure
ee forums to understand employees’ voices.
Huate Gas regards talent as the core asset for enterprise development and a long-term competitive advantage. In accordance
The Company encourages employees to put forward suggestions and opinions regarding Company operations and business,
with relevant laws and regulations, the Company has formulated recruitment management rules, and the Human Resources
providing direction for improvement and optimization. The Company implements a “Continuous Improvement Plan”, under
Department is responsible for recruitment management. The Company conducts talent recruitment by publishing recruitment
which employees may submit proposals based on current issues and provide solutions covering aspects such as risk avoid-
information through channels such as online recruitment platforms, on-site recruitment and the Company’s official website.
ance, efficiency improvement, management enhancement and cost reduction. The Company rewards employees who submit
such proposals. In terms of social recruitment, the Company adopts a multi-channel recruitment strategy, utilizing both online and offline re-
cruitment channels to attract and recruit suitable talents. During the reporting period, the Company participated in one on-site
In addition, the Company has formulated the Huate Gas Employee Appeal Management System, which adheres to the princi-
social recruitment event.
ples of “openness, fairness, impartiality and transparency”, ensuring that employees can communicate with management in
a timely and effective manner when encountering issues at work. At the same time, Huate Gas cooperates with multiple universities, actively participates in campus double selection fairs and
conducts campus dedicated presentations, engages in face-to-face communication with graduates, and accurately selects tal-
ents.
Employee Satisfaction Survey
The Company conducts an annual satisfaction survey covering all employees. By distributing employee satisfaction question- Key indicators Unit 2025 2024 2023
naires to all employees, the survey covers aspects such as compensation and benefits, working environment, communication
mechanisms, working hours and leave policies. Based on the survey results, the Company promptly understands employee
Total number of employees Persons 1,243 1,200 1,186
demands and addresses potential issues, comprehensively understands employees’ true views on the Company’s develop- Number of new employees Persons 178 152 153
ment and operation management and works together with employees to promote enterprise development.
Recruitment channels Unit 2025 2024
Number of social recruitment hires Persons 69 57
Rights and Interests of Female Employees
Number of campus recruitment hires Persons 5 6
Huate Gas pays close attention to the rights and interests of female employees. The Company complies with the Law of the
People’s Republic of China on the Protection of Women’s Rights and Interests and the Labor Contract Law of the People’s Re- Other recruitment channels Persons 104 89
public of China and other laws and regulations, and strictly implements statutory maternity leave, breastfeeding leave, mis-
carriage leave and maternity allowances. At the same time, in accordance with relevant national regulations, the Company
provides protection for female employees during the “four periods” and does not arrange female employees during pregnan- Establishing Career Pathways
cy and breastfeeding periods to engage in work that is harmful to themselves or the fetus. Promotion Management
The Company’s trade union has established a women employees committee, which guides female employees to participate Huate Gas attaches great importance to employees’ self-development. The Company has formulated the Employee Career
in enterprise development, carries out education on “self-respect, self-confidence, self-reliance and self-strength”, improves Development Management Regulations and implements a dual channel design, encouraging employees to independently
the quality of female employees, cares for their lives, safeguards their special rights and interests, and creates a workplace choose career development paths suitable for themselves from both horizontal and vertical dimensions, thereby enhancing
environment that respects and supports women. their professional capabilities and competitiveness.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Training System of Huate Gas
Technical track Functional track
Job level Position Level Job level Position Level
Planning items
Onboarding training Talent review projec Qing Lan Project Outcome outputs
P12 Chief engineer D2 Director
Talent assessment Trainer training
Coach training
Deputy chief (internal + external) TTT
P11 D1 Deputy director
engineer
Implementation
P10 Senior Level 1 M4 Manager
Leadership group of Human Human
Human resources Third party institutions
Qing Lan Project resources resources
P9 Senior engineer Level 2 M3 Deputy manager
P8 Level 1 M2 Assistant manager
New employee
assessment
Core backbone
Included in
onboarding
Internal
pool B
P7 Level 2 M1 Supervisor staff
Assistant
Corporate
engineer culture
P6 Level 3 M0 Deputy supervisor
Middle management
Execution
Development of
Safety training professional courses at
P5 Level 1 A5 Level 1
all levels
Senior technician Senior specialist
assessment
Included in
Huangpu class
External
P4 Level 2 A4 Level 2
pool A
Policy training
P3 Level 1 A3 Level 1
Specialist
Technician
Assistant
P2 Level 2 A2 Level 2
Eligibility criteria
Courses at all
Competency
for inclusion
Talent pool
Talent at all
P1 Junior technician A1 Intern
Outputs
Platform standardized
model
levels
levels
courses
P0 Intern A0 Specialist
Internal Transfer
Planning items
Talent review Talent replication Course planning
To further optimize the allocation of talent resources and improve the efficiency of human resource utilization, the Company
establishes a talent exchange and allocation mechanism through internal transfers and inter subsidiary transfers, enabling
timely and precise filling of internal vacant positions. While enriching the talent reserve pool and diversifying the talent struc- Senior mentoring junior for the Qing Lan Project Training classes at all levels
ture, the Company reasonably controls the frequency of talent mobility to ensure stable development and continuous innova-
tion across all business segments.
implementation
Mentor training
Key behaviors
Upload and
Assessment
Completion
adherence
incentives
Recording
Execution
Feedback
archiving
intention
Inclusion
Program
Training
outputs
system
Employee Training and Development
The Company recognizes that employees are the core driving force for sustainable development. The Company attaches
Mid and senior
Course system
Core courses
Competency
Junior level
Mentorship
level talent
importance to employees’ career planning and personal growth, encourages employees to improve themselves, and realizes
Outcome
Recorded
courses
outputs
model
talent
forms
the joint growth of individuals and the enterprise. The Company has formulated the Human Resources Control Procedure and
the Training Evaluation Management System and other related training systems. The Human Resources Department formu-
lates the Annual Training Plan and implements employee training according to the needs of each department.
The Company has established a comprehensive training system by carrying out induction training, job transfer training, on
the job training, class-based training and the Qing Lan Project, supporting employee development. To ensure the professionalism of the trainer team, the Company has formulated the Trainer Management System, which cov-
ers trainer selection, development, utilization, output and evaluation, ensuring that trainers possess sufficient capability and
awareness to perform their duties.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Outstanding mentor evaluation process
Safeguarding Health, Creating a Secure Environment
Employee roster Trainer and mentor standards
Governance
Preliminary screening of
trainer and mentor pool The Company strictly complies with the Work Safety Law of the People’s Republic of China and the Law of the People’s Re-
public of China on the Prevention and Control of Occupational Diseases and other relevant laws and regulations and has
formulated management systems such as the Full Staff Work Safety Responsibility System and the Occupational Health
Evaluation system Assessment Management System. The Company has passed the GB/T 45001-2020 and ISO 45001:2018 Occupational Health and Safety
Management System certification and has established a clear, top-down occupational health and safety governance system
to implement leadership responsibility and management commitment.
Qualified mentor pool
Organization or individual Responsibilities
Mentor training
As the primary person responsible for the Company’s operation management and
Course development production safety, assumes ultimate responsibility for the effectiveness of the occu-
Course materials output Formulation of pational health and safety management system.
onboarding training plan Responsible for establishing an effective occupational health and safety manage-
General
ment system and ensuring its effective implementation.
manager
Presides over the formulation of the Company’s occupational health and safety poli-
Mentorship implementation cies and objectives and ensures adequate resource allocation.
Training implementation Presides over management reviews and promotes continuous improvement of the
system.
Assessment and evaluation
Fully responsible for the establishment, implementation and maintenance of the oc-
Outstanding trainer team cupational health and safety management system.
Reports system performance and improvement recommendations to top manage-
Quality ment.
director Ensures that all employees enhance awareness of occupational health and safety re-
quirements.
Responsible for organizing internal audits and handling liaison with external stake-
Key performance Unit 2025 2024 2023 holders.
CNY Ten
Employee training investment
thousand
Responsible for hazard identification, risk assessment and control planning across the
Total employee training hours Hours 191,283 185,555 127,923 Company.
HSE Responsible for organizing the measurement, monitoring, accident investigation and
Average employee training hours Hours 425 623 538 Department handling of occupational health and safety performance.
Responsible for formulating operational procedures for work safety management and
organizing the development and drills of emergency plans.
Certified internal trainers Persons 24 19 16
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Strategy
Huate Gas, with reference to occupational health and safety related laws, regulations and industry standards, and in combination with its own conditions, identifies and evaluates occupational health and safety related impacts, risks and opportunities, thereby strengthening occu-
pational health and safety management, providing direction for corrective measures and achieving the Company’s sustainable development objectives.
Impact on
Financial Time range
Risk type Description Likelihood of occurrence Degree of impact value chain Response measures
impact of impact
links
occupational health and safety standards, resulting in employee health
issues or safety incidents, employees may initiate legal proceedings
against the Company. The Company may be required to bear substantial 1. Equip comprehensive occupational disease prevention and safety protection
compensation costs. facilities, including labor protection supplies.
Legal risk Medium Medium Operations
Company’s occupational health and safety management. In case of reduction term 3. Conduct occupational disease prevention and safety education and training to
violations of such requirements, such as failure to provide required labor enhance employee awareness.
protection equipment, the Company will face administrative penalties 4. Carry out occupational hazard monitoring to ensure workplace safety.
including fines and orders to suspend production for rectification from
regulatory authorities, which will not only disrupt normal operations but
also adversely affect financial performance.
Company may attract public attention and negative media coverage, health conditions.
leading to damage to brand image and reduced trust in the Company’s 2. Continuously improve emergency response systems and regularly conduct
products or services, thereby affecting market competitiveness. Revenue emergency drills to enhance response capabilities.
Reputational risk Medium Medium Long term Operations
business partners may question the Company’s occupational health and safety incidents in a timely manner.
safety management capabilities and reassess cooperation relationships, 4. Carry out occupational health and safety system certification to ensure
thereby affecting supply chain stability and business expansion. management compliance.
to increased employee absenteeism. Employees may be unable to work diseases and provide appropriate protective equipment based on different positions
normally due to health reasons, affecting production efficiency and work and job types to ensure employee safety.
Cost
Operational risk progress. Medium Medium Short term Operations 2. Arrange working and rest time reasonably to ensure employees receive adequate
increase
invest additional resources in safety management, employee training and 3. Continuously optimize the occupational health and safety management system
equipment maintenance, thereby increasing management costs. to ensure its effective operation.
To maintain the operation of the occupational health and safety management 1. Establish a safety production responsibility system and a comprehensive occupational
Cost
Market risk system, the Company invests substantial resources, which indirectly increases Low Medium Long term Operations health and safety management process system.
increase
product costs and thereby affects product competitiveness and pricing. 2. Conduct regular occupational health examinations.
Opportunity Financial Impact on value chain
Description Likelihood of occurrence Degree of impact Time range of impact Response measures
type impact links
Optimizing the financial budgeting and management
processes of occupational health and safety can not Adopt a smart safety management platform
Management Cost
only improve overall operational efficiency, but also Medium Medium Long term Operations to improve the efficiency of occupational
efficiency decrease
effectively reduce the risk of accidents, thereby avoiding health and safety management.
high financial costs caused by accidents.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Impact, Risk and Opportunity Management Indicators and Targets
To standardize hazard identification, risk assessment and risk control activities, and to ensure that various safety risks can be
The Company continuously tracks the achievement of occupational health and safety targets, implements all occupational
effectively controlled, the Company has formulated the Safety Risk Grading and Control Management System, covering risk
health and safety work in a target-oriented manner, and optimizes the level of occupational health and safety management.
identification, risk assessment, risk classification and risk control.
To achieve “full participation, whole process, all dimensional and all weather” risk management and control, the Company
has established a safety risk grading and control group. The group leader is responsible for arranging and coordinating the Occupational health and safety targets Achievement status in 2025
construction of the safety risk grading system and conducting assessments. The deputy group leader is responsible for or-
ganizing coordination, process training and technical guidance, and for preparing safety risk grading and control documents.
Zero general or above safety accidents √ Achieved
Group members are responsible for implementing specific tasks of the safety risk grading system.
Safety risk management process diagram Zero serious injury or above work-related injury accidents √ Achieved
Establishment of safety risk Zero fire accidents √ Achieved
grading and control group
Zero food poisoning incidents √ Achieved
Data collection and onsite inspection
Zero occupational disease incidence √ Achieved
Accident type
Hazard identification
Influencing factors and accident mechanism
Inspection and Evaluation
Likelihood of accident occurrence Major work-related injury accidents ≤3 cases per year √ Achieved
Risk assessment
Exposure to hazardous environment Zero major safety hazards identified in on-site inspections by
√ Achieved
government authorities
Severity of accident
Formulation of risk control plan
Risk control 100% rectification rate of safety hazards √ Achieved
Measures to reduce or prevent risks
√ Achieved
operations and special equipment operations
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Key indicators Unit 2025 2024 2023
Work-related fatality rate % 0 0 0
Number of work-related
fatalities
Persons 0 0 0
Total number of work-related
injuries
Persons 0 0 0
CNY Ten
Total safety investment
thousand
Work injury insurance CNY Ten
investment amount thousand
Knowledge training of Safety Risk grading control and Fire safety knowledge and
Coverage rate of work injury
insurance
% 100 100 / Production Law hazard identification safety labor protection equipment
knowledge training training
Safety production liability CNY Ten
insurance investment amount thousand
Coverage rate of safety Safety Hazard Identification and Rectification
production liability insurance
% 100 100 /
The Company has established a systematic safety hazard identification and rectification system, with the “dual prevention
mechanism” as the core. Through institutional standardization, organizational support and closed loop process management,
Number of new occupational
disease cases
Cases 0 0 0 responsibility-based management from full employee participation to full process supervision is achieved.
Institutional Mechanism
The Company, in accordance with the Safety Risk Grading Control System and the Accident Hidden Hazard Identifi-
cation and Governance System, has formulated the “One Line and Three Eliminations” working mechanism to form a
systematic framework management. The HSE Department is responsible for organizing inspections, tracking rectifica-
tion and reporting; all departments and employees carry out daily identification and reporting in accordance with the
Safety Production Practices principles of territorial management and responsibility of all staff.
Identification and Governance
Safety Education and Training
A combination of comprehensive identification (at least once per year), routine identification (at least once per
month), special identification and regular or irregular inspections is adopted, covering the entire plant area and the
The Company, in accordance with the Safety Training and Education Management System and the Three Level Safety Train-
whole process. Hidden hazard governance implements a closed loop process of “identification, ranking, reporting,
ing System, requires new employees, personnel transferred to new positions and personnel returning to work to complete
self-rectification, self-verification and closure”. General hidden hazards are rectified immediately, while major hidden
company level, department level and team level safety education, with a total training duration of no less than 72 hours, and
hazards are addressed through special plans. Relevant information is communicated through internal meetings and
to pass written examinations at each level (≥85 points) before assuming their posts; At the same time, through the Quar-
announcements, and risk and hidden hazard lists are regularly reported to local emergency management authorities.
terly Safety Themed Education Lecture System, the principal person in charge delivers quarterly lectures, supplemented by
special systems such as the Occupational Disease Prevention Publicity, Education and Training System. The training content Closed Loop Control
is designed according to the three-level system of factory level, department level and team level, combined with quarterly
During the reporting period, more than ten cross departmental joint inspections were carried out, covering key areas
lectures by the principal person in charge, regular special training, annual emergency drills and dynamic updates of training
such as fire protection, electricity use, special equipment, chemical management, emergency facilities and operating
materials to achieve normalized implementation. During the reporting period, the Company carried out special training on fire
environment. For identified hidden hazards, rectification measures, responsible persons and deadlines are clearly de-
safety, electrical safety, environmental protection safety, change management and occupational disease prevention, and the
fined, and tracked and verified by the HSE Department, forming a complete management closed loop.
participation rate of major training throughout the year reached 100%.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Key Performance
During the reporting period, 672 safety hazards were identified, and the rectification rate of safety hazards
reached 100%.
Emergency materials cabinet Emergency materials
Identification of safety hazards (a large number After completion of rectification Smart Safety Management
of cylinder frames were placed on the evacuation
The Company adopts a smart safety management platform to realize real time monitoring and multi-level early warning for
passage in the bulk gas workshop)
same time, the overall design of the computer terminal large screen function and mobile terminal function has been complet-
ed, achieving comprehensive intelligent data management featuring “rapid perception, real time monitoring, advance warn-
ing, emergency response and system evaluation”, thereby enabling integrated supervision of smart operational safety and
reducing the probability of safety incidents.
Safety Emergency Management
Emergency plan system construction: The Company has established a three-tier emergency plan structure of“Comprehensive
Contractor Safety Management
Emergency Plan + Special Environmental Emergency Plan + On Site Disposal Plan” and conducts review and revision at least
once every three years. According to the scope of impact of incidents, a three-level response mechanism of workshop level,
To strengthen contractor safety management and effectively prevent the occurrence of safety incidents, the Company, in
plant level and social level is defined. Social level incidents follow the three-stage information reporting principle of “initial re-
accordance with relevant laws and regulations, has formulated the Contractor Safety Management System. By signing pro-
port, follow up report and result report”, and are reported to the competent authorities within 30 minutes.
ject HSE agreements with contractors, the Company clarifies the HSE responsibilities of both parties and the requirements
Emergency drills and material support: The Company regularly conducts script free emergency drills, simulating scenarios for HSE risk prevention and control and conducts HSE education and risk disclosure for contractors before entering the plant,
such as hydrogen tube bundle workshop leakage and fire, and ammonia leakage in hazardous chemical warehouses, and re- thereby maintaining the safety of the operating environment and building a solid safety defense line for the steady operation
cords and improves the issues identified. Emergency materials are managed through inventory lists and dedicated personnel of the Company.
and storage, ensuring rapid deployment.
Key Performance
During the reporting period, the Company conducted 71 safety emergency drills.
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Occupational Health Protection
Monitoring and Prevention
The Company has established a comprehensive occupational health monitoring mechanism, regularly conducts occupational
hazard factor testing, establishes monitoring and evaluation records, and carries out regular testing of occupational hazard
factors in the workplace and occupational health examinations. In addition, the Company equips occupational disease pro-
tection tools as required, reduces hazards through facility upgrades, conducts pre job occupational hazard notification, and
sets up occupational hazard notification boards and warning signs in prominent positions in production workshops and oper-
ation posts to reduce occupational health risks.
The Company conducts occupational health examinations for employees engaged in operations involving exposure to oc-
cupational hazards before taking up posts, during employment, upon leaving posts and in emergency situations. Suspected
occupational disease cases identified are reported to local health authorities, and employees are arranged for occupational
disease diagnosis or medical observation.
Occupational health and safety Occupational Disease Occupational health knowledge
knowledge training of Chenzhou Prevention Law training of training of Zhongshan Huaxin
Xiangneng Huate Gas
Key Performance
During the reporting period, the compliance rate of occupational hazard factor testing reached 100%.
Practicing Responsibility, Giving Back to Society
Ammonia gas detector Toxic gas alarm
Huate Gas fulfills its social responsibilities through continuous investment in charitable donations, the implementation of mul-
tiple public welfare projects, and the active mobilization of employee volunteers to participate through practical actions. Dur-
ing the reporting period, the Company donated CNY 299,540 through the Xingning Charity Association to Chongwen School
in Huangpi Town, Xingning City, to support rural revitalization and education development.
Training and Education
Key indicators Unit 2025 2024 2023
The Company’s occupational health training system focuses on regulatory compliance and on-site risk prevention and con- CNY Ten
trol, covering core contents such as regulatory standards, hazard prevention, operating procedures, emergency skills and
Charitable donations
thousand
case-based warning education. Training is delivered through diversified methods, including bulletin boards, internal commu-
nications, special courses, pre shift meetings, on-site explanations and video teaching, to continuously strengthen employee
Number of public welfare activities Times 2 2 4
awareness. The system consistently adheres to a risk-oriented approach, emphasizing personal protective equipment (PPE) Number of employee volunteer
as the last line of defense for hazard control, and systematically guiding employees to master proper selection, wearing, participations
Person-time 100+ 230 480
maintenance and limitation requirements, ensuring that employees clearly understand actual workplace risks and corre-
Number of beneficiaries of public
sponding control measures.
welfare
Persons 1000+ 2000+ 3000+
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Appendix
Key Performance Table Indicator type Indicator name Unit 2025
Number of ad hoc
Copies 71
Governance Category Corporate announcements issued
Shareholder interests
governance
Shareholder dividends CNY Ten thousand 59,804,754.00
Indicator type Indicator name Unit 2025
Number of employees receiving compliance training Persons 8,225
Total number of directors Persons 8
Compliance
Hours of employee compliance training Hours 598.5
Number of executive operations
Persons 1
directors
Number of compliance training sessions organized by the
Times 292
Number of independent Company
Directors Persons 3
non-executive directors
Total number of employees who have received anti-
Persons 0
corruption training
Number of female directors Persons 2
Number of anti-corruption training sessions % 0
Number of male directors Persons 6 Anti-corruption
Total number and percentage of operating sites that
% 0
have undergone corruption risk assessment
Average tenure of board members Years 3
Total number of confirmed corruption incidents Cases 0
Average attendance rate of board meetings % 100
Corporate
Number of valid patents held Cases 270
governance
Number of training sessions attended by board members Times 3
Number of trademarks and word registrations held Cases 48
Number of investor relations Intellectual property
Times 9
activities protection
Cumulative number of granted utility model patents Cases 223
Number of investor
Investor relations Times 9
communication meetings
Number of new patent applications in the year Cases 37
Total number of investors
Person-time 346
received
Significant fines and non-monetary sanctions for
Number of shareholders violations of laws and or regulations in social and Cases 0
Times 3
meetings held economic areas
Operational
Attendance rate of directors
Shareholder interests % 100 indicators Total number of non-monetary sanctions Cases 0
at shareholders meetings
Number of periodic reports
Copies 4 Cases brought through dispute resolution mechanisms Cases 0
disclosed
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Environmental Category
Indicator type Indicator name Unit 2023 2024 2025
Total water withdrawal from all
Megaliters 118,376.0 156,696.0 123,367.1
areas
Indicator type Indicator name Unit 2023 2024 2025
Total freshwater withdrawal (total
Megaliters 118,376.0 156,696.0 123,367.1
Liquefied Petroleum Gas Tons 111.58 87.99 82.85 Water resource dissolved solids ≤1,000 mg/L)
use
Diesel Tons 2,762.40 2,407.83 2,631.30 Total recycled or reclaimed water Megaliters 4,000 4,200 4,500
Total water consumption in all
Gasoline Tons - 1.71 11.19 Megaliters 72,043.0 96,811.0 72,276.1
areas
Energy
consumption
Total purchased Electricity kWh 10,129.15 18,442.00 17,191,113.71 Total wastewater discharge Cubic meters 46,333 59,885 51,091
Indirect energy consumption Tons of standard coal 1,244.87 2,266.52 1,884.66 Chemical oxygen demand (COD) Milligrams per liter 52.0 16.0 8.0
Biochemical oxygen demand in 5
Total energy consumption Tons of standard coal 1,439.54 2,420.31 6,105.36 Milligrams per liter 19.2 4.3 3.9
days (BOD5)
Direct (Scope 1) greenhouse gas Metric tons of CO ₂
emissions equivalent
Wastewater
Indirect (Scope 2) greenhouse gas Metric tons of CO ₂
emissions equivalent
Metric tons of CO ₂
Greenhouse gas emission intensity 0.099 0.115 0.110 Total phosphorus Milligrams per liter 0.09 0.03 0.02
equivalent per revenue
Metric tons of CO ₂
Greenhouse gas emission reduction -2,125.47 -1,232.78 487.43 Acute toxicity - 无 无 无
equivalent
Ozone depleting substances (ODS) Metric tons of CO ₂
emissions equivalent
Emissions Total exhaust gas emissions Cubic meters 1,702.1 1,502.3 1,657.8 Total recyclable waste Tons 10 21 164.13
Milligrams per cubic
Particulate matter 0.148 0.0745 0.129 Total general solid waste Tons 82.26 107.49 191.34
meter
Milligrams per cubic Total general solid waste disposed
Non methane hydrocarbons 0.00499 0.00174 0.00967 Tons 0 0 0
meter in landfill
Waste
Milligrams per cubic Total general solid waste
Nitrogen oxides 0.3016 0.0432 0.0534 Tons 0 0 0
meter incinerated
Milligrams per cubic
Sulfur oxides 0.0245 0.0127 0.0047 Total general solid waste recycled Tons 10 21 46.187
meter
Milligrams per cubic
VOC emissions 0.00371 0.0107 0.0062 Total general solid waste other Tons 0 0 0
meter
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Social Category
Indicator type Indicator name Unit 2023 2024 2025
Total hazardous waste Tons 35.56 42.21 20.06 Indicator type Indicator name Unit 2025
Total hazardous waste disposed in
Tons 0 0 0 Labor contract signing rate % 100
landfill
Total hazardous waste incinerated Tons 0 0 0 Total number of employees entitled to parental leave Persons 1,243
Employee
Total hazardous waste recycled Tons 0 0 0 Total number of employees who took parental leave Persons 5
rights
Total number of employees who returned to work during the
Total hazardous waste other Tons 0 0 0 Persons 5
reporting period after parental leave
Waste
Total hazardous waste transported Tons 0 0 0 Return to work rate of employees who took parental leave % 1
Total hazardous waste imported Tons 0 0 0 Total number of employees Persons 1,243
Total number of discrimination incidents during the reporting
Total hazardous waste exported Tons 0 0 0 Cases 0
period
Total hazardous waste treated Tons 0 0 0 Male Persons 1,017
By gender
Percentage of hazardous waste
% 0 0 0 Female Persons 226
transported internationally
Environmental protection
CNY Ten thousand 94.47 140.66 102.34 Labor contract employees Persons 1,202
investment
Environmental
By
protection Total investment in energy Employee
employment Labor dispatch employees Persons 25
investment conservation and emission CNY Ten thousand 21.62 36.18 40.12 employment
type
reduction
Others Persons 16
Total amount of significant fines for
non-compliance with environmental CNY Ten thousand 0 0 0
laws and or regulations
Total number of non-monetary 41 to 60 years Persons 551
sanctions for non-compliance By age
Environmental Cases 0 0 0
with environmental laws and or 31 to 40 years Persons 433
compliance
regulations
Cases brought through dispute
resolution mechanisms for non-
Cases 0 0 0
compliance with environmental
laws and or regulations
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Indicator type Indicator name Unit 2025 Indicator type Indicator name Unit 2025
Number of employees aged 51 years and above
Bachelor’s degree and above Persons 313 Persons 22
who left
By education Number of employees aged 41 to 50 years who
Junior college Persons 288 Persons 27
level left
By age
Number of employees aged 31 to 40 years who
Secondary vocational and below Persons 642 Persons 53
left
Number of employees aged 30 years and below
Total number of grassroots employees Persons 1,076 Persons 61
who left
Number of employees who left working in
Total number of middle management employees Persons 161 Persons 162
By employee Employee Mainland China
category turnover rate Number of employees who left working in Hong
Total number of senior management employees Persons 5 By region Persons 0
Kong, Macao and Taiwan
Number of female employees in senior Number of employees who left working in other
Persons 1 Persons 1
Employee management countries and regions
employment
Production personnel Persons 446 Labor contract employees Persons 1,202
By
Sales personnel Persons 122 employment Labor dispatch employees Persons 25
type
Technical personnel Persons 163 Others Persons 16
By
professional Financial personnel Persons 47 Total number of employees trained Persons 8,225
composition
Administrative personnel Persons 74 Total hours of training on labor rights policies or procedures Hours 120
Percentage of employees trained on labor rights policies or
Transport personnel Persons 325 % 100
procedures
Others Persons 66 Number of male employees trained Persons 6,498
Employee
By gender
training
Total number of employees who left Persons 163 Number of female employees trained Persons 1,727
Employee turnover rate % 13.34 Number of grassroots employees trained Persons 7,155
Employee
turnover rate By employee Number of middle management employees
Number of male employees who left Persons 134 Persons 987
category trained
By gender
Number of senior management employees
Number of female employees who left Persons 29 Persons 83
trained
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Indicator type Indicator name Unit 2025 Indicator type Indicator name Unit 2025
Number of complaints received regarding
Total training hours for employees Hours 191,283 Cases 0
products and services
Average training hours per employee Hours 425 Number of product recall incidents Cases 0
Percentage of employees receiving regular performance and
% 100 Number of product quality training sessions Sessions 24
career development reviews
Product responsibility
Number of participants in product quality
Total training hours for male employees Hours 474 Persons 802
Employee training
By gender
training Number of quality management system
Total training hours for female employees Hours 125 Companies 1
certifications
Total training hours for grassroots employees Hours 412 Coverage rate of quality management system % 100
By employee Total training hours for middle management
Hours 56 Customer satisfaction survey status Score 96.54
category employees
Total training hours for senior management
Hours 6 Total number of incidents of non compliance
employees
with laws and or voluntary codes related to
Cases 0
marketing, including advertising, promotion
Number of work-related injuries Persons 0
and sponsorship
Customer service
Number of work-related accidents Cases 0
Total number of substantiated complaints
Cases 0
concerning breaches of customer privacy
Safety Number of occupational disease cases Persons 0
incidents and
Complaints from regulatory authorities Cases 0
personnel Number of work-related fatal accidents Cases 0
Occupational Total number of suppliers Companies 2,253
Number of work-related fatalities Persons 0
health and
safety Suppliers in Mainland China Companies 2,000
Fatality rate per million working hours % 0
Percentage of security personnel who have Supply chain Suppliers in Hong Kong, Macao, Taiwan and
By region Companies 15
Security received formal training on organizational labor management overseas
% 100
practices rights policies or specific procedures and their
application Number of local suppliers Companies 238
Employee occupational health and safety
Health CNY Ten thousand 287 Percentage of suppliers who have signed the Supplier Code of
investment % 100
and safety Conduct
investment Safety production investment CNY Ten thousand 1,651.53
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Indicator type Indicator name Unit 2025 Topics of Guidelines No. 14 for Self-Regulation
Report Structure GRI Standards of Listed Companies—Sustainability Report
Number of suppliers that have undergone environmental impact (Trial) by Shanghai Stock Exchange
Companies 44
assessments
Scientific Checks and
Number of suppliers with quality management system
Companies 1 Balances, Guiding the 2-9, 2-12 ——
certification
Direction
Number of suppliers with environmental management system
Companies 1
certification ESG Integration, Enhancing 2-11, 2-13, 2-14, 2-16, 2-17, 2-18, 2-26,
Due diligence and stakeholder communication
Value 2-29, 3-1, 3-2, 3-3
Supply chain Number of suppliers with occupational health and safety
Companies 1
management management system certification Standardized Operations,
—— ——
Preventing Risks
Total number of new suppliers Companies 283
Integrity in Operations, Anti-commercial bribery and anti-corruption,
Percentage of new suppliers screened using Sustaining Development anti-unfair competition
% 100
By assessment environmental criteria
Safeguarding Clean Gas and
type Percentage of suppliers screened using social
% 100 Fulfilling the Green Mission
criteria
Strict Compliance, 303-1, 303-2, 303-3, 303-4, 303-5, Environmental compliance management,
Strengthening the Bottom 305-6, 305-7, 306-1, 306-2, 306-3, pollutant emissions, waste treatment,
Line 306-4, 306-5 ecosystem and biodiversity protection
Scientific Response, 102-1, 102-2, 102-3, 102-4, 102-5, 102-
Response to climate change
Prioritizing Carbon Reduction 6, 102-7, 102-8, 102-9, 102-10
Efficient Utilization, Circular Energy utilization, water resource utilization,
Indicator Index Development
circular economy
Advocating Green Practices,
—— ——
Practicing Low Carbon
Topics of Guidelines No. 14 for Self-Regulation
Report Structure GRI Standards of Listed Companies—Sustainability Report Inspiring Momentum to Drive
(Trial) by Shanghai Stock Exchange Breakthroughs in Specialty
Gases
About this Report 2-2, 2-3, 2-4, 2-5, 2-22, 2-27 ——
Innovation Driven, Leading
—— Innovation driven
Development
Message from the Chairman —— ——
Collaborative Win-Win,
Supply chain security, equal treatment of
Resilient Supply Chain 308-1, 308-2, 414-1, 414-2
About Huate Gas 2-1, 2-6 —— small and medium sized enterprises
Assurance
Fostering Integrity to Pursuing Excellence,
Strengthen Governance Achieving Outstanding 416-1, 416-2 Product and service safety and quality
Foundations Performance
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Topics of Guidelines No. 14 for Self-Regulation Feedback Form
Report Structure GRI Standards of Listed Companies—Sustainability Report
(Trial) by Shanghai Stock Exchange
Dear Reader,
Wholehearted Service, Thank you so much for reading this report. We highly value and sincerely look forward to hearing your feedback on this
Creating Value report. Your opinions and suggestions are an important basis for us to continuously improve our ESG information disclo-
sure level and to advance ESG management and practices. We welcome and sincerely appreciate your valuable feed-
Strengthening Protection, Data security and customer privacy back!
Safeguarding Assets protection
Fostering Harmony to Build 1. What is your overall evaluation of our ESG performance?
a Safe Home Together
□ Excellent □ Good □ Fair □ Poor □ Bad
Standardized Employment,
Fulfilling Responsibilities
□ Excellent □ Good □ Fair □ Poor □ Bad
Respecting Rights and 405-1, 405-2, 406-1, 407-1, 408-1,
Employees
Interests, Promoting Fairness 409-1, 410-1 3. How do you evaluate our performance in stakeholder communication?
□ Excellent □ Good □ Fair □ Poor □ Bad
Empowering Growth, Sharing
the Future
Safeguarding Health, □ Excellent □ Good □ Fair □ Poor □ Bad
Creating a Secure Employees
Environment 5. How do you evaluate our performance in environment, safety and occupational health?
□ Excellent □ Good □ Fair □ Poor □ Bad
Practicing Responsibility,
Giving Back to Society 6. How do you evaluate our performance in employee responsibility?
□ Excellent □ Good □ Fair □ Poor □ Bad
Appendix
Key Performance Table —— ——
□ Excellent □ Good □ Fair □ Poor □ Bad
Indicator Index —— ——
Feedback Form —— ——
You may contact us through the following methods:
Mailing address: Jinfeng Road, Heshun, Lishui, Nanhai District, Foshan City, Guangdong Province
Contact number: 400-888-1188
Company website: www.huategas.com
HUATE GAS 2025 Environmental, Social and Governance (ESG) Report ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
