CORPORATE SOCIAL RESPONSIBILITY REPORT Corporate Social Responsibility Report https://www.rianlon.com Contents Steadily Advancing Industrial People-oriented, creating a Layout with Innovation Taking happy workplace with all efforts 01 About This Report the Leading Role 72 ESG Performance Table 49 Safeguarding employees' rights and interests 03 President's Statement 27 Product quality and safety 79 Global Reporting Initiative (GRI) Content Index 53 Supporting employee development 05 About Rianlon 29 Scientific research and technological innovation 85 Reader Feedback Form 58 Focusing on occupational safety 09 Annual Honors 30 Customer relationship maintenance 60 Strengthening employee care 10 Social Responsibility Management 32 Responsible supply chain 35 Digitalization and information security Comprehensively Improving Governance Through Steady Operation Green Development, Active Response Repaying Society and Jointly to the "Carbon Peaking and Carbon Creating a Better, Harmonious 15 Deepening the leadership of Party building Neutrality" Goals Home 17 Internal control for compliant operation 39 Implementation of "carbon peaking and 65 Facilitating common prosperity 19 Comprehensive risk management carbon neutrality" management 66 Contributing to community welfare 22 Focusing on clean employment 40 Further management of three wastes 68 Sharing development achievements 23 Investor relation management 43 Rational utilization of resource 24 Intellectual property right protection 46 Addressing climate change 3 天津利安隆新材料股份有限公司 4 About This Report This Report is the first corporate social responsibility (CSR) report that Rianlon Corporation has released disclosing t he environmental, social, and governance (ESG) work and impacts of the listing corporation in 2022 and respondingto the expectations and concerns of stakeholders. Report Organizational Scope: Rianlon Corporation and its subsidiaries. "Rianlon Hong Kong" refers to Rianlon Technology Co., Ltd. Scope Time Frame: January 1, 2022 – December 31, 2022 "Rianlon GMBH" refers to one of Rianlon's subsidiaries in Germany Release Cycle: This is an annual report released yearly. "Rianlon Americas" refers to Rianlon Americas, INC. "Rianlon Japan" refers to Rianlon Japan Co., Ltd. "Rianlon Supply Chain" refers to Rianlon Supply Chain Management Co., Ltd. Report The information and data disclosed in this Report are from the formal internal documents, "Jinzhou Kangtai" refers to Jinzhou Kangtai Lubricant Additives Co., Ltd. Data statistical reports, and annual reports of Rianlon Corporation. The Board of Directors of "Aoruifu" refers to Tianjin Aoruifu Biomedicine Co., Ltd. Description the Corporation and all directors guarantee that this Report contains no false records, misleading statements, or major omissions, and they assume individual and joint liability for the authenticity, accuracy, and integrity of this Report. The financial data in this Report Languages This Report is prepared in both Chinese and English . In case of any discrepancies , is in RMB, if there are any inconsistencies between the financial report and this Report, the the Chinese version shall prevail. financial report shall be taken as the authoritative source. Preparation The Report has GRI Sustainability Reporting Standards (GRI Standards) for reference and Formats This Report is released in both printed and electronic formats. Standards benchmarks against the Sustainable Development Goals (SDGs) adopted by the UN. Title For convenience, Rianlon Corporation in this Report is referred to as "Rianlon", "the Access This Report is available at Rianlon's website (https://www.rianlon.com) for reference and download. Description Corporation", or "we". "Rianlon Zhongwei" refers to Rianlon (Zhongwei) New Material Co., Ltd. "Rianlon Zhuhai" refers to Rianlon (Zhuhai) New Material Co., Ltd. "Rianlon Kerun" refers to Rianlon Kerun (Zhejiang) New Material Co., Ltd. "Rianlon Kaiya" refers to Rianlon Kaiya (Hebei) New Material Co., Ltd. "Rianlon Chifeng" refers to Rianlon (Inner Mongolia) New Material Co., Ltd. and Inner Mongolia Unique Material Technology Co., Ltd. 1 天津利安隆新材料股份有限公司 2 President's Statement management carried on our mission of "creating a better life with chemistry and biology", fully implemented Strategy 2.0 via "major 3+1" and "minor 3+1", and completed our performance plan in 2022. We have engaged in the field of polymer-material anti-aging additives for decades and continued to provide a complete product portfolio and build a global supply chain system. In this way, we gained an extensive brand reputation in the global market, which brought steady business growth to the New Material Business Division and laid a solid foundation for our sustainable development. Following the national strategy to make supply chains self-sufficient and their risks controlled, we expanded our business in lubricant additives and acquired China's second major lubricant additive company in May 2022. Since then, we have been on the critical track of the national strategy. A self-supporting and risk-controlled supply chain of lubricant additives has key influences on national economy and security as well as people's lives. This lubricant additive can be widely used in transportation by sea, land, and air, industrial equipment, metal processing environment, special operations, intelligent manufacturing, and other fields. After the acquisition and integration, the Lubricant Additive Division registered immense growth year-on-year in its performance, making a steady step forward in our second lifeline. When we were pursuing stable progress on the two 100-billion-yuan business tracks, we also took the initiative to build our third lifeline—the Bioscience Business Division. We set up a new business in fields such as biological building blocks and synthetic biology, oriented each of our projects to the cutting- edge international technologies in the field. The first set of biological building block devices from Orilife Haiping Li Biopharma Co., Ltd. that we invested in and established has been put into production, and the Bioscience President, Rianlon Corporation Business Division has been under operation. In the past three years, our three tracks were developed in parallel on the same technology platform on the premise that we maintained the leading role of chemical and biological technologies. 2022 is the first year we embarked on the second 100-billion-yuan business track and the fourth year we In 2023, we will promote the healthy development of the three lifelines, and actively explore new markets adopted Strategy 2.0. As stated in the Central Economic Work Conference, we stayed confident this year and businesses. To satisfy the requirements of new business development, we will continuously optimize against the backdrop of "high winds and choppy waters." We seized the opportunity of the national strategy to the organization through reforms to transition to the mode of "headquarters – divisions" in a smooth and make supply chains self-supporting and their risks controlled and upgraded our Strategy 2.0. We also formed steady manner. Moreover, we will keep our corporate philosophy of being "united, persistent, diligent and three lifelines for sustainable development backed up by our New Material Business Division, Lubricant happy", and build Rianlon into a world-class enterprise with sustainable development that customers trust, Business Division, and Bioscience Business Division. Under the leadership of the new Board of Directors, the employees are proud of, and society respects. 3 天津利安隆新材料股份有限公司 4 About Rianlon Rianlon started its business in 1994, established production sites in 2003, and is now a world-leading provider We pay much attention to both our own technological abilities and our global service network. Centering of polymer-material anti-aging additive products and services. In more than 20 years, Rianlon has focused on Hong Kong, China, we have founded three subsidiaries in Düsseldorf, Germany, New York, the US, and on technology innovation and set up six production sites in Tianjin Hangu, Ningxia Zhongwei, Zhejiang Tokyo, Japan, respectively. We have also set up distributors in Japan, South Korea, the US, Germany, Italy, Changshan, Hebei Hengshui, Guangdong Zhuhai, and Inner Mongolia Chifeng. The Corporation also formed Spain, the UK, Turkey, South Asia, and other countries and regions. To fulfill our unchanging commitment of the capacity pattern of double sites for mutual supply of production lines of all products such as antioxidants, "stable quality, steady supply and immediate response" to our customers, we built logistics warehouses in light stabilizers, and the overall solution U-pack. In 2022, Rianlon opened the second lifeline of lubricant Antwerp, Europe, Ohio, the US, Singapore, Thailand, Japan, and Guangzhou, Shanghai, Ningxia, China. With additives, acquired Jinzhou Kangtai, and took a proactive part in the self-supporting and risk-controlled these logistics warehouses, we can establish a 72-hour rapid response mechanism that provides convenient project of China's lubricant supply chain. Our third lifeline of bioscience now has taken shape and reached and quick localized services for our main customer groups around the world. We will stick to the mission the moment of going global after two years of accumulation. Developing for more than 30 years, Rianlon of "creating a better life with chemistry and biology", and stay true to our original aspiration. We will strive has taken the mission of "creating a better life with chemistry and biology", and established a professional, to moving forward and take the lead in the strategy of making China a manufacturing powerhouse, and refined, and high-quality development path with characteristics. becoming a world-renowned provider for fine chemicals and biological products. Head Office Production Site Subsidiary Distributor Office Warehouse 5 天津利安隆新材料股份有限公司 6 Rianlon's Development Timeline 1994 2017 2005 Started the R&D, Listed on the Second-board Market in Shenzhen 2003 production, and sales of Clarified the main business and began to focus on Stock Exchange Established the production the development of polymer-material anti-aging Acquired Kerun New Material Co., Ltd. in polymer-material anti- site in Binhai New Area, additives, and started global promotion and sales Changshan County, Zhejiang and expanded its aging additives Tianjin of independent brands production capacity Established the R&D Center Established the Postdoctoral Workstation in Tianjin and the Academician Workstation in 2015 Changshan County, Zhejiang 2008 Set up the production site in Ningxia Zhongwei, Set up sales offices in Guangzhou and Suzhou Founded the established the Application Technologies Created the Rubber Business Division and European Engineering Center, and launched the business of Polyolefin Business Division subsidiary providing the U-pack solution 2012 2018 Established the US Started the plan to invest in the Zhuhai site and Hong Kong 2013 project in Guangdong, and established the subsidiaries Certified as Tianjin Polymer- Postdoctoral Workstation in Changshan Material Functional Additive County, Zhejiang Technology Engineering Center Established the Japan subsidiary Finished the construction of the Research Institute Building and put it into operation, significantly improving basic conditions for 2019 technology innovation Acquired Hengshui Kaiya in Hebei to level up the capacity anda improve 2020 the anti-aging production line Started to acquire Jinzhou Kangtai and launched the second lifeline of lubricant 2021 additives Certified as Tianjin Polymer-Material Anti-aging Additive Technology Research Center Attained the holding of Rianlon (Inner Mongolia) and realized HALS 2022 double-site supply Put 60,000 tons of antioxidants in Zhuhai Site Phase I, 6,000 Approved by Acquisition and Restructuring Committee, Shenzhen tons of light stabilizers in Chifeng Site, and 3,200 tons of Stock Exchange to acquire Jinzhou Kangtai light stabilizers in Hengshui Site into production as planed Worked with Gene Pharma to establish Aoruifu Biomedicine Co., Launched the water dispersible antioxidant project with Ltd., embarked on the track of nucleic acid drugs, and started the an annual production of 5,000 tons in Hangu Site third lifeline of bioscience Finished the acquisition of Jinzhou Kangtai and expanded Founded the Bioscience Research Institute the second lifeline 7 天津利安隆新材料股份有限公司 8 Annual Honors Awardees Awarders Awards Top 10 Listed Companies of the Investor Capital Week Relations Awards 2022 Excellence IR Best Capital Market Communication Award www.STOCKSTAR.com 2022 Most Valuable Investment Award 2022 Outstanding Practice Case of Offices of Board of Directors of Listed Companies 2022 Outstanding Practice Case of Offices of Social Responsibility Management China Association for Public Companies Board of Directors of Listed Companies Kingfa Sci. & Tech. Co., Ltd. Excellent Supplier Rianlon Tianjin Development and Reform Tianjin Polymer-Material Anti-aging Additive Rianlon holds high the concept of sustainable development, and integrates ESG core theories and standards Corporation Commission Technology Research Center with corporate strategy and management to effectively manage ESG risks and identify corresponding opportunities for high-quality development. We fulfill responsibilities to all stakeholders and achieve a Top 100 Companies in Technological Innovation Tianjin Federation of Industry and balance between business value and social value. We promise to support the ten principles advocated by of Tianjin Private Enterprises "Healthy Growth Commerce the UN Global Compact in the fields of human rights, labor, environment, and anti-corruption, and fully Project" (No. 30) implement them into our strategy, operation, and culture. We also promise to incorporate the UN Global Tianjin Municipal Science and Technology Compact and its principles into the decision-making process of the top management, actively participate in Leading Technological Enterprise in Tianjin Bureau partnerships and strive to achieve broader development goals. Tianjin Enterprise Confederation, Tianjin 2022 Tianjin Top 100 Manufacturing Enterprises Enterprise Directors Association (No. 64) The Ten Principles of the UN Global Compact Hebei Development and Reform Hebei Enterprise Technology Center Human Rights Commission Principle 1: Businesses should support and respect the protection of Ministry of Industry and Information internationally proclaimed human rights; and Specialized and Sophisticated "Little Giant" Firm Hengshui Site, Technology of the People's Republic of Principle 2: make sure that they are not complicit in human rights abuses. (China's Fourth Batch) Hebei China Labor Hengshui Industrial and Information Principle 3: Businesses should uphold the freedom of association and the effective recognition of the Technology Bureau, Hengshui Water Hengshui 2022 Water Saving Enterprise right to collective bargaining; Resource Bureau Principle 4: the elimination of all forms of forced and compulsory labor; Principle 5: the effective abolition of child labor; and Quzhou Enterprise with Harmonious Labor Quzhou Federation of Trade Unions Principle 6: the elimination of discrimination in respect of employment and occupation. Relations Changshan Site, Zhejiang Zhejiang Association for Science and Environment Zhejiang Doctoral Innovation Station Technology Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Zhongwei Site, May Day Labor Award of Ningxia Hui Principle 9: encourage the development and diffusion of environmentally friendly technologies. Ningxia Federation of Trade Unions Ningxia Autonomous Region Anti-Corruption Rianlon Supply Federation of Trade Unions of Binhai "Mommy's Home" Demonstration Site Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. Chain New Area, Tianjin 9 天津利安隆新材料股份有限公司 10 Analysis of Material Topics Stakeholder Key Communication Issues of Concern Identification Stakeholders Channels Rianlon drew information from national macro policy directions, social responsibility standard studies domestic and abroad, industrial benchmarks, stakeholder interviews and investigations, and other aspects. Based on About the shareholders' meetings that, Rianlon determined issues that have major impacts on the Corporation and the stakeholders, and formed a Investor relation management Shareholders' meetings material proposition. In 2022, based on the "importance to the Corporation" and the "importance to stakeholders", Comprehensive risk management Briefings Rianlon prepared a Questionnaire on Rianlon 2022 Social Responsibility Report Material Topics, and arranged ESG Corporate Internal control management Media communication material issues in order of importance. Data collected from the process can help Rianlon set ESG macro objectives, Shareholders investors and Information disclosure Internal communication specific goals, information disclosure, and constant communication with stakeholders. and institutional Scientific and technological and e-mails institutional investors innovation Webcast Rianlon's Material Topics Matrix investors Business ethics Official website Intellectual property right protection Annual reports Very Important Moderately Important Less Important Environment management Environmental Responsibility (E) Social Responsibility (S) Governance (G) Carbon emission management National ministries Information disclosure Fighting climate change and commissions, Policy implementation Customer relations Anti-corruption regulators of local News platforms Improving the quality of products and services Governments Social welfare governments, and Compliance platforms and regulators Information disclosure Responsible supply chain market regulators Webinars Pollutant discharge management Internal control management Intellectual property rights Fighting climate change Water resource Responsible marketing Customer investigation Investor relations Research management Technology research and Customer services Information disclosure institutions, Scientific research and development Customer satisfaction Importance to Stakeholders Optimizing corporate governance technological innovation upstream and Remuneration Industry cooperation management and benefits Customers downstream Anti-corruption Official website Community welfare Employee training Digital transformation firms Supporting and development and information security Intellectual property right protection Social media and construction common prosperity Occupational safety Diversity and equal Tax payment and creating jobs Exchanges and visits opportunities Labor rights and interests Suppliers Supplier management Scientific and technological innovation and business Industrial forums Industry cooperation Partners partners Association exchanges Information security Information disclosure Business ethics and anti-corruption Business ethics Community, social organizations, Environment management Public benefit activities public welfare Fighting climate change Exchanges and organizations Employees' rights and interests Community and interaction media, etc. that Anti-corruption Importance to Rianlon public Official website the Corporation is Social welfare involved in Communication with Stakeholders Labor contracts Rianlon takes proactive measures to manage relationships with customers, shareholders, government, Employees' rights and interests Reasonable proposals investors, regulators, investment institutions, business communities, and other stakeholders. Stakeholders Career development Democratic can be influenced by the Corporation's ESG performance, and their behaviors can also have an impact on the Staff Remuneration and benefits communication Corporation's value. Stakeholders can take part in the communication directly or indirectly. Interaction and Employees Health and safety Letters and visits communication with key and target stakeholders help to deepen mutual understanding and cooperation and Official website lay the foundation for our sustainable development. 11 天津利安隆新材料股份有限公司 12 01 Comprehensively Improving Governance Through Steady Operation Steady operation modes and sound corporate governance lay a solid foundation for enterprises' stable and sustainable development. We make continuous efforts to improve the corporate governance, adhere to the leadership of Party building, improve management mechanisms, and enhance compliance and internal control management, laying a foundation for modern and high-quality governance. In the meantime, we adopt a comprehensive risk management system at the operational level, focus on clean employment, strengthen investor relation management, and improve intellectual property right protection. Thus, we create a healthy and sustainable operating model to drive long-term and stable development. Deepening the leadership of Party building Internal control for compliant operation Comprehensive risk management Focusing on clean employment Investor relation management Intellectual property right protection Making contributions to UN Sustainable Development Goals (SDGs) 13 天津利安隆新材料股份有限公司 14 Comprehensively Improving Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Governance Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Deepening the leadership of Party building Enhancing Party organization building Revolving around the Party building framework of "2+N", Rianlon has constantly built up the Rianlon perseveres in the development guideline of "strengthening the foundation and carrying forward leadership of the Party in the Corporation. We have reinforced the Party organization building revolutionary traditions" to solidify the foundation of the grass-roots Party organization. Rianlon Party through multiple measures such as solidifying Party branches, recruiting new Party members, Committee has always focused on the construction of the grass-roots Party organization, and earnestly kept and providing funds to give the Party building into important play in Rianlon's safe and healthy the leadership of the Party in all links and the whole process of primary level management, production and development. In 2022, there were 6 Party branches, 150 Party members, 13 probationary Party operation to promote the in-depth development of the Party building. Relying on the first lifeline of polymer- members and 74 active applicants for Party membership in the Corporation. material anti-aging additives, we create benefits for all Rianlon people. Through expanding the business of lubricant additives, we draw a driving force to grow our projects under operation. We also engage in bioscience to pioneer blue ocean markets, thus realizing mutual support and advancement of blue business operations and revolutionary traditions, thus propelling high-quality development. Creating a Party building brand Rianlon vigorously strengthens the Party building and actively promotes the three-dimensional construction of "revolutionary traditions, blue Figure: All members of Rianlon's Party branches are actively donating funds and other items ocean markets, and green development". We give full play to the leading role of the Party building, and deepen the integration of corporate culture and the Party building work to create a Party building brand with Rianlon's characteristics. Holding high the red Party flag to lead the development of Studying and implementing the spirit of the 20th CPC National Congress Carrying forward Rianlon's first lifeline in a bid to stabilize the foundation, broaden revolutionary traditions development space, and provide benefits for all Rianlon people The 20th National Congress of the Communist Party of China (CPC) is a meeting of great importance. It takes place at a critical time as the entire Party and the Chinese people of all ethnic groups embark on a new journey to build China into a modern socialist country in all Pioneering blue The color of blue represents blue ocean markets, which involves respects and advance toward the Second Centenary Goal. On October 16, 2022, to prepare for ocean markets Rianlon's second lifeline of lubricant additives the 20th CPC National Congress, Rianlon organized its Party branches and Party members to watch the opening conference in diverse forms to study, publicize and implement the spirit of the 20th CPC National Congress. In this manner, we made sure that the objectives, tasks, and The green 1 symbolizes Rianlon's philosophy of green and low- various decisions and arrangements can be carried out in the Corporation's development. Taking the lead for carbon development and making waters lucid and mountains lush. green development It also means the breakthrough Rianlon has made in bioscience from scratch and the efforts to open up the third lifeline. Figure: Rianlon's activities to prepare for the 20th CPC National Congress 15 天津利安隆新材料股份有限公司 16 Comprehensively Improving Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Governance Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Internal control for compliant operation Quantitative Information of Rianlon's Governance in 2022 Rianlon strictly abides by laws and regulations such as the Company Law and the Securities Law of the People's Republic of China and constantly improves the corporate governance structure. Based on the Articles of Association, we formed a management architecture consisting of Shareholders' Meetings, Board of Directors, Board of Supervisors, and the Operation Management to protect lawful rights and interests of the Corporation and all shareholders. Also, we formulated the Rules of Procedure for Shareholders' Meetings, 10 8 1 5 2 1 Rules of Procedure for Board of Directors, Rules of Procedure for Board of Supervisors, Detailed Rules for the Work of the Secretary of the Board of Directors, the President's Work Rules and other rules and regulations to Number of Number of Number of Number of Number of Number of meetings meetings meetings meetings meetings of meetings of clarify work responsibilities and requirements and protect shareholders' rights and interests. of Board of of Board of of Strategy of Audit Nomination Remuneration Directors Supervisors Committee Committee Committee and Assessment The Corporation shall hold Shareholders' Meetings in accordance with the laws and regulations. Committee In 2022, we held 5 Shareholders' Meetings, and the convening, convening procedures, Shareholders' qualifications of attendees, and voting procedures were in line with relevant laws and regulations. Meetings In this way, we made sure that all shareholders, especially small and medium-sized shareholders enjoyed equal positions and fully exercised their rights. 11 Male directors Female directors Dependent directors Independent directors We are committed to create a diversified Board of Directors, which has 11 members, including 4 Number of non-executive directors and 3 female directors. In 2022, we convened 10 meetings of the Board the members of Board of Gender mix Types of directors Board of of Directors. We made clear the responsibilities of each committee under the Board of Directors, Directors Directors ensuring the effective operation of the Board of Directors and scientific decision-making. We ensured that independent non-executive directors can express independent opinions on relevant matters to protect the interests of the Corporation and small and medium-sized shareholders. System construction The Board of Supervisors has 3 supervisors, including 1 employee representative supervisor. The number and composition of the Board of Supervisors meet the requirements of laws and Rianlon adheres to the five principles of comprehensiveness, importance, balance, adaptability, Board of regulations. The Board of Supervisors supervises the performance of the Board of Directors and cost-effectiveness in building an internal control system, and establishes corresponding Supervisors and the management, including reviewing regular reports prepared by the Board of Directors, internal control centers at the headquarters of each subsidiary to strengthen compliance inspecting the finances, and supervising connected transactions and the performance of directors management capabilities. As of the end of December 2022, the Corporation and its business and senior management personnel. In 2022, we had 8 meetings of the Board of Supervisors. divisions have released 261 systems in total, including 51 basic systems of operation, 79 systems for inter-departmental assistance, and 131 departmental SOP systems. We took actions to continuously deepen the effectiveness of internal control systems, clarified specific measures, Board of Supervisors Shareholders' Meetings and ensured effective implementation. Board of Directors Internal control management mechanism Rianlon formulated the Basic Norms for Corporate Internal Control and listed a total of 21 kinds of business based on the division of departmental responsibilities. We also sorted out various Strategy Audit and Risk Control Nomination Remuneration and management systems and business processes according to the involved business, and adjusted Committee Committee Committee Assessment Committee 63 processes according to the authorization manual. We have improved approval efficiency and avoided gray areas through hierarchical authorization. In 2022, Rianlon organized 6 activities Operation to publicize and implement the internal control authorization manual, to raise the risk control Management awareness and increase the ability of management personnel. 17 天津利安隆新材料股份有限公司 18 Comprehensively Improving Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Governance Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Comprehensive risk management Rianlon's Risk Map Strategic risk Market risk Operational risk Financial risk Legal risk Macro environmental Brand management Corporate culture risk Plan management risk Sales management risk Engineering Budget management Tax management Compliance risk situation risk risk management risk risk risk Market Strategic management Market competition Plan development Corporate culture development Engineering Property Legal dispute risk risk risk Budgeting risk construction risk and sales strategy project management risk management risk Strategic Planning development approval risk Price fluctuation risk Budget Inventory planning risk Clean government assessment risk risks Contract Engineering execution risk management system management risk Strategic Risks in exchange Bad debt risk project risk construction risk Budget implementation rate and interest rate Logistics management risk implementation Price risk assessment risk Fixed asset Intellectual risk Government relation risk operation and property right risk management risk Sales channel Delivery risk Engineering Capital security risk maintenance Industry risk management risks project Qualification Social responsibility risk risk Warehouse settlement risk Monetary fund management risk Industry Intangible asset management risk management planning risk Document system After-sales service management risk Audit supervision risk risk Product construction risk Import and export management risk standard risk Technical management risks Human resource risk Receivables Accounting reserve risk Authorization Information and financial Corporate and payables management risk management risk Human reporting risks qualification management risks Purchase management risk resource risk Corporate governance Institutional Confidentiality planning risk Business Connected risk construction risk Purchase plan and transaction risk guarantee risk and approval risks information Key talents Organizational Risk management risk security risks loss risk structure setting risk Supplier management risk Information Renumeration Subsidiary system design and Purchase management and planning risk performance method risk control risks evaluation risks Purchase Product quality risk M&A and acceptance risk restructuring risk Information Labor dispute risk disclosure risk Investment project risk R&D project management risk Internal Risks in health, safety and R&D project information environmental protection decision risk Investment dissemination decision risk risk Evaluation risk after Seal and archive the implementation External management risks Investment of R&D projects information implementation and disclosure risk withdrawal risks Accurate analysis risk Process package risk Equipment management risk Labor outsourcing risk Figure: Rianlon's risk map 19 天津利安隆新材料股份有限公司 20 Comprehensively Improving Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Governance Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Risk management system Focusing on clean employment Rianlon constantly improves its risk management system, revises the Risk Manual on a regular Rianlon rigorously abides by the Rules of Integrity and Self-discipline of the Communist Party of China, the basis, clear classification of the risks, specific risk items, proper scientific grading of the risk, and Regulations of the Communist Party of China on Disciplinary Actions, the Regulations of the Communist Party effective risk measures are the four key points to ensure risk reduction and control, included in of China on Accountability and other provisions, and continues to strengthen the construction of the anti- this year's work highlights. Each department has established a comprehensive risk management corruption compliance system. We have formulated the Management System for Clean Employment and the structure based on risk management positions and established risk management institutions at Management System for Letters and Visits to enhance the anti-corruption awareness of all employees and corresponding levels. The Corporation conducts comprehensive risk management, including basic improve their professional ethics with the Party building and clean employment as the guide. process design, risk control information system construction, risk management culture cultivation, risk assessment, and supervision, etc., to ensure that risk control has rules and laws to follow. In 2022, Rianlon carried out the training on the internal risk control manual once. Fraud reporting mechanism Rianlon encourages any unit or individual to report or expose any behavior that violates corporate Risk management framework What to regulations and business ethics standards, or any other behavior that harms the interests of the report Corporation or employees in a public or non-public manner to the Audit Department. Rianlon bases the risk management on "one foundation and three lines" and has developed a We have established diverse reporting channels, including letters, phone calls, e-mail addresses, comprehensive risk control framework. How to and appointment for face-to-face reporting, and have established a public reporting page on our report official website. Set operational standards for each department through the corporate process map Pre-control provided by the leading department, including process steps, operational responsibilities, Rianlon will conduct investigations in strict accordance with national laws and regulations as well Reporting as internal procedures, and ensure that all information is kept confidential for the reporter. and business forms. It is the foundation to make internal management standard. commitment According to the investigation results, Rianlon will reward 10% - 20% based on the recovery Assess and monitor risks during business operations, and integrate it into the Reward for of economic losses or improper benefits recognized by the judicial authorities by the person In-process business operational process. It is the means to understand the business situation in reporting accused, with a maximum reward of RMB200,000 for a single report. control time. On the basis of establishing corporate systems and clear processes, review Anti-corruption training Post control key operational points, analyze the reasons for failure to follow systems and regulations, and carry out standardized management. Rianlon has gradually improved its anti-corruption training system. In 2022, we organized anti-corruption training sessions for all employees, and produced videos and organized other special activities to prevent bureaucracy and formalism, so that employees can understand the importance and necessity of anti- corruption work. By the end of 2022, we convened 3 anti-corruption training sessions. Risk management culture Rianlon has performed relevant procedures through strictly conforming to corporate risk management regulations, stuck to the concept of comprehensive risk control in information systems, and established a corporate management system that is in line with the actual situation. The Corporation continues to increase its risk management training efforts, raise employees' awareness and improve their capabilities for risk management, continuously strengthens employees' internal risk control capabilities, prevents various risks, and makes risk management an important content of annual training. Figure: Anti-corruption training session and screenshot of the anti-bureaucracy video 21 天津利安隆新材料股份有限公司 22 Comprehensively Improving Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Governance Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Investor relation management Quantitative Information of Investor Relations in 2022 Rianlon is responsible for protecting the legitimate rights and interests of all investors. In 2022, we actively Information disclosure 4 116 93 127 improved our investor management system and communication channels with all shareholders. We also won the Outstanding Lecturer Award in the first community grid-based investor teaching competition in Tianjin, establishing a good relationship with our shareholders. We strictly comply with the requirements of the system and relevant laws and regulations to fulfill our Regular reports Provisional notices Online materials Number of disclosure information disclosure obligations. During the reporting period, we disclosed 127 announcements in total. In reports 2022, we updated the existing corporate information disclosure and investor relation management systems, and further clarified the six working principles in the management system and actual work: Intellectual property right protection Full Compliance Equal High efficiency Integrity and Interaction and information information opportunities and low trustworthiness communication disclosure disclosure for investors consumption Rianlon rigorously follows relevant laws and regulations such as the Tort Law, the Patent Law, the Trademark Law, the Copyright Law, and the Anti-Unfair Competition Law of the People's Republic of China. We formulated internal management systems such as Rianlon Intellectual Property Right Management System, Incentive and Reward System for Independent Innovation of R&D Personnel, Patent Grading Management Rianlon has established an investor relation management team led by the Secretary of the Board of Directors and System, Quality Review Standards for Case Written by Agents, and Scoring Standards for Technical Disclosure. securities affairs representatives. It holds analyst briefings, performance briefings, and other activities from time to Moreover, we never stop our efforts to improve the intellectual property right protection system, increase time, receives consultation from analysts, investors, and media, and receives investor visits. We set up an investor employees' awareness year by year, vigorously carry out training for related personnel, and strengthen interaction platform Easy Interaction to summarize and release information of investors' concerns. We also opened intellectual property right protection work overall. an official account on WeChat to regularly publicize industry knowledge and our recent situation for industry researchers and investors at home and abroad. Through these moves, we enable our investors to have a deeper 174 71 239 understanding of our business situation and future development strategy, and firmly invest in our long-term value. Rianlon had a total of including In 2022,Rianlon held 245 invention patents utility model patents domestic patents 6 105 63 2 7 patents 10 + 5 including authorized As of December 31, 2022 international patents authorized invention patents utility model patents teleconferences online performance investor protection strategy meetings for domestic briefings promotions and foreign securities firms 21 19 87 29 8 30 11 95 8 Throughout the year, we answered invention patents invention patents domestic ones + + 300 100 50 with a response new patents new authorized trademarks 96% rate of over utility model patents patents utility model patents international ones inquiry calls from small and visits of investors for on- questions raised by medium-sized shareholders site investigation investors online 23 天津利安隆新材料股份有限公司 24 02 Steadily Advancing Industrial Layout with Innovation Taking the Leading Role Rianlon perseveres in the mission of creating value for customers, stands fast at independent innovation and optimizes industrial layout to provide high-quality products for customers. We always strictly control product quality, intensify scientific research and technological innovation, and devote ourselves to customer services. We also create a responsible supply chain, reinforce information security, and pursue high-quality development of the industry with innovation taking the leading role. Product quality and safety Scientific research and technological innovation Customer relationship maintenance Responsible supply chain Digitalization and information security Making contributions to UN Sustainable Development Goals (SDGs) 25 天津利安隆新材料股份有限公司 26 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Product quality and safety Improving quality risk management Rianlon sets the quality policy of "customer and quality first, compliance, law abiding and constant We have attached great importance to the adverse consequences brought to customers due improvement", focuses on process management, follows ISO9001 quality management requirements, and to product quality risks and formulated a quality risk management system to carry out risk conducts full process quality control. The Corporation ensures product quality through strict quality control identification, reduce risks, and eliminate adverse effects. procedures, monitors product indicators in real time, and adopts a series of internal control measures to make Eliminate/ sure excellent product quality. reduce unacceptable risks Classify and Establishing a quality management system Identify Assess risk manage quality risks hazards risks Assess and Customer Following relevant standards, we carry out comprehensive quality management, and establish analyze communication a scientific, rigorous, and efficient quality management system. We have formulated 25 residual and risk review risks procedural documents and departmental systems such as the Quality Manual, Production and Service Provision Control Procedures, Inspection Management Regulations, Quality Accident Management System, 4M Change Management System, and Defective Product Control Procedures. These documents and systems clarify the quality control, service standards, and Advocating the quality concept relevant responsible personnel in all processes from R&D design, product delivery to after-sales services, ensuring full-process quality control management. The Corporation raises the awareness of all employees for quality, broadens their quality knowledge, clarifies the value orientation of pursuing excellence and high quality, and improves In 2022, Rianlon optimized the detailed requirements for product recall management and the quality management level through quality culture construction and quality training. developed a simulation plan for the recall of defective products. "Quality Month" Since 2019, we have launched the "Quality Month" activities in the "China Product violations and recalls occurred in 2022: 0. activities Quality Month" of September each year. Through a series of activities such as publicity, lecturing, skill improvement, sharing, competition, Production and Quality Control Quality Quality other functional Management optimization, and total involvement, we aim to raise the quality awareness Department Engineer Committee departments of all employees and improve their capabilities for quality improvement. Prepare system Prepare documents for corporate system Quality training Rianlon highly values quality training and provides information on quality system the department documents Review standards, and quality management systems and tools through a combination of internal and external training. We set a quality experience classroom to have Approve lectures every week for employees to consolidate their understanding of standard operating practices and learn about the latest quality concepts. Quality management system runs Number of Total training hours (Number Sites Class hours Department System operation trainees of trainees x Hours) Internal review work summary checklist Hangu Site 163 5,934 452,628 Internal audit System System management improvement operation Changshan Site 64 387 1,434 process suggestions report Management Zhongwei Site 731 3,118 191,522 review meeting Zhuhai Site 244 4,221 591,744 Implement Preventive Management corrective and Hengshui Site 30.5 1,191 1,895 measures review preventive workflow process Chifeng Site 68 847 7,006 measures Verify the System effectiveness of operation Total 1,300.5 15,698 1,246,229 measures records Table: Summary of Rianlon's Quality Training in 2022 27 天津利安隆新材料股份有限公司 28 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Scientific research and technological Green product technology R&D innovation We take full advantage of industrial innovation, develop green product technology, reduce the pollution of products to the environment, improve the recyclability rate of products, and reduce Taking innovation-driven development as an important strategy, Rianlon sets strategic goals for future the impact of products on the environment in the full life cycle. innovation and strives to become a global leader in the industry by 2028. The Corporation has established Ecological design concept for product R&D the Rianlon Research Institute to continuously enhance its technology R&D strength in the development of Develop and produce antioxidants and light stabilizers as anti-aging additives for polymer materials new structures, new process innovation and application technology ability. The Corporation has formulated to extend the service life of materials, thus reducing scrap materials and environmental pollution. the Project R&D Management System to standardize the process management of R&D projects from project initiation to project closure, so as to ensure the efficient, orderly and controllable progress of R&D projects. Reduced use of hazardous chemicals Toxic and harmful substance substitution through technological innovation Solvent recycling in the process Project R&D Management Process Dimethylamine solution replaces anhydrous dimethylamine to reduce safety risks Optimization of concentrated wastewater process to replace the use of hydrogen peroxide Preparing the R&D Project Small-scale Preparing the R&D Project Project Proposal Closure Report R&D Project Proposal Review Test Closure Application [Case] Improve product process to increase production Implementation of R&D Review of Small-scale Test Project Team Establishment and Review Closure of Projects Small-scale R&D Test Projects Pilot Scale Test and Pilot and reduce consumption Development of New Production of R&D Projects Product and Process Confidentiality of Technical Documents Rianlon improves the production process of AO1098, solves the problem of excessive loss of Project R&D Cycle hexamethylene diamine, increases the production capacity of AO1098, and reduces organic Change and Termination of R&D Projects content in exhaust gas to reduce energy consumption and protect the environment. Innovation platform construction R&D departments: We have set up internal R&D departments for our research institute, such as Customer relationship maintenance U-Pack Department, UV Absorbent Research Institute, Light Stabilizer Research Institute, Antioxidant Adhering to the customer-centric concept, Rianlon attaches great importance to customer service and improves the Research Institute, Engineering and Design Research Institute, Synthetic Biology Laboratory, Nucleic customer management system. Based on the customer satisfaction survey, Rianlon carries out multi-directional customer Acid Monomer R&D Laboratory, Pilot Industrial Base of Synthetic Biology, Single Agent Research demand response, satisfies diversified customer needs, provides quick feedback on customer complaints, timely solves Institute, Complexing Agent Research Institute, Analysis and Evaluation Center, etc. customer problems, and continuously improves service accessibility to further increase customer satisfaction. Innovation platforms: We have built Tianjin Enterprise Technology Center, Engineering Technology Center for Functional Additives for Polymer Materials, Engineering Research Enhance service accessibility Center for Anti-aging Additives for Polymer Materials, Postdoctoral Workstation, International Cooperation Base and other innovation platforms. The Corporation places emphasis on the accessibility of customer service, always adheres to "doing what customer wants, thinking what customer Innovation team: We have an innovation team of more than 300 people led by a number of PhDs cares", pays attention to the timeliness of product delivery, strictly follows in Chemistry, and employ industry-leading experts from the United States, Japan and Europe. We the customers' delivery schedule, and improves customer satisfaction as have made remarkable achievements in structure innovation and application technology innovation much as possible. The Corporation has created a 72-hour quick response of anti-aging products. By the end of 2022, the research institute had 7 PhDs and 59 Masters. covering major customer groups around the world, and set up logistics warehouses in Antwerp in Europe, Ohio in America, Singapore, Thailand Industry-university-research cooperation: We have established long-term cooperation with and Japan, as well as Guangzhou, Shanghai and Ningxia to provide universities such as Tianjin University, Zhejiang University, Sichuan University, Tsinghua University convenient and quick localized services for customers around the world. and Beijing University of Chemical Technology, and have accumulated good interaction modes for industry-university-research cooperation in terms of project development and talent cultivation. Figure: In 2022, Rianlon overcame external obstacles to deliver the goods to the customer in time and received a letter of thanks from the customer. 29 天津利安隆新材料股份有限公司 30 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Optimize customer service management Responsible supply chain The Corporation continuously optimizes customer service and effectively improves service quality Rianlon always requires suppliers to observe the laws and regulations and relevant procurement guidelines, and efficiency by strengthening system management, innovating customer communication methods, incorporates social responsibility requirements into supplier management, establishes a responsible improving customer complaint management processes, and conducting customer satisfaction surveys. procurement system and a sunshine procurement mechanism, and works with suppliers to create a sustainable supply chain. Strengthen The Corporation has formulated the Reception Management System to clarify system the relevant process and system for receiving customers. In addition, the management Corporation has developed targeted customer management methods based on Strengthen supplier management the characteristics of customers in different sales module areas, to provide more accurate and effective customer services. The Corporation has established a complete and efficient supply chain management system, encouraged suppliers to sign the Supplier Code of Conduct, formulated the Supplier Increase The Corporation has launched the "going global" project, which not only provides Management System, carried out comprehensive supplier evaluation and due diligence, customer visits services by email and phone, but also expands customer contact methods. and incorporated factors such as quality conditions, environmental and social responsibility Through offline visits, the Corporation deepens the understanding of customers fulfillment, and after-sales service into the supplier evaluation and audit standards. and forms a close relationship with customers. Improve the The Corporation continuously improves the customer complaint management Conduct The Corporation has formulated the Sunshine Purchase Management System customer process, formulates the Customer Complaint Management System, standardizes sunshine to strengthen prior and in-process control to ensure that all purchasing activities complaint complaint acceptance, timely reviews and provides feedback on complaint purchase are open, fair, and equitable. Meanwhile, the Corporation further enhances the management handling opinions, and develops an assessment and reward system to strengthen management integrity and self-discipline awareness of internal purchasing staff and suppliers process awareness of customer complaints and actively respond to customer complaints. through the signing of Commitment Letter of Due Diligence and Integrity by Carry out The Corporation actively conducts customer satisfaction surveys to gain an in- purchasing staff and Fair Trade Agreement by suppliers, holding internal integrity customer depth understanding of customer needs and collect customer opinions. The symposiums and supplier conferences on the theme of sunshine purchase, etc. satisfaction Corporation also carries out customer complaint prevention and optimally Create a The Corporation integrates sustainable development requirements into supply surveys addresses customer feedback and suggestions. In 2022, 394 customer satisfaction sustainable chain management and sets sustainable purchasing management targets for 2022 surveys were issued and 326 were collected, with a customer satisfaction score of supply chain in accordance with the requirements of the Sustainable Purchasing Management 94.78, an increase from the previous year. Policy for Environmental and Social Responsibility. The Corporation conducts supplier sustainability evaluations and investigates and regulates the ability of suppliers, subcontractors, or partners to implement social responsibility to prevent adverse impacts on environmental protection and employees' occupational health and safety during procurement, storage, use, and disposal. Strengthen responsible marketing Establish The Corporation has formulated the New Supplier Introduction Mechanism, a supplier incorporating legal compliance and EHS into the supplier admission principles, Rianlon insists on responsible marketing and complies with relevant laws and regulations such as the introduction deepening the management of supplier compliance and sustainability, and Consumer Protection Law. The Corporation has formulated the Marketing Center Industry Management and elimination ensuring that the Corporation provides "responsible" products and services. System, which clarifies the downstream industry division of the Corporation's product application mechanism and the person in charge of each industry, and confirms the selection method, job responsibilities and 83% 100% 100% corresponding incentive mechanism of the person in charge of the industry. Meanwhile, the Corporation has issued the Sales Management System of Anti-aging Division and Management System of Marketing Center of Anti-aging Division, which provide targeted standardized management for the marketing plan, product price, financial risk, contracts, samples, customers, bids and information. Besides, the Corporation has formulated the Packaging Management Process, Labeling Management Process and Percentage of suppliers Percentage of new Percentage of new signing clauses containing suppliers selected using suppliers selected using Sales and Logistic Fee Management Regulations for such links as packaging, labeling and logistics, so as environmental and labor environmental standards social responsibility to cover the whole process of responsible marketing. requirements standards 31 天津利安隆新材料股份有限公司 32 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Facilitate a win-win industry chain [Case] The Corporation held the first supplier conference 50 Rianlon actively carries out social responsibility training to create a sunshine supply ecosystem for suppliers and organizes supplier exchange activities. In addition, the Corporation strengthens strategic cooperation Rianlon actively organized a supplier conference to create a good supply chain ecology. and promotes the improvement of suppliers' sustainable Number of social The Corporation proposed sunshine purchase guidelines, advocating to build a "Great awareness and capability to build a sustainable supply chain responsibility (ESG) Wall" of corruption prevention system with suppliers, and signed sunshine purchase with industry chain partners. training for suppliers commitments with each supplier to form a sunshine purchase mechanism. Participating suppliers will work together with Rianlon to deepen cooperation and jointly promote sustainable development cooperation. [Case] Rianlon and BASF-YPC signed a strategic cooperation agreement In November 2022, Rianlon and BASF-Yangzi Petrochemical Company (BASF-YPC) held a strategic cooperation meeting. The theme of the meeting was "Create opportunities, share outcomes, and assume the missions jointly". Based on the strategic cooperation framework, both parties will innovate business cooperation models, deepen strategic partnerships, jointly create opportunities, share outcomes, and assume the missions, and work closely together. Figure: Rianlon and its suppliers signed the commitment to honest cooperation on the banner of "Being Credible and Honest to Create the Future Together" Figure: Rianlon and BASF-YPC signed a strategic cooperation agreement 33 天津利安隆新材料股份有限公司 34 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Digitalization and information security Digital transformation Rianlon actively carries out intelligent and digital transformation to enhance its core competitiveness and independent innovation capability, accelerate the digital transformation process, and promote the integration of intelligent and digital sustainable development. Figure: Rianlon's EHS digital system Moder business Intelligent Digital product management manufacturing marketing The Corporation actively At the present stage, our Under the premise of Information privacy security integrates information equipment management continuously optimizing management system into platform has covered all traditional marketing Rianlon attaches great importance to information security management. The Corporation has formulated all aspects of company production sites, which models, the Corporation the Network Information Security Management System and Information Security and Confidentiality management and provides intelligent, digital actively adopts new Management System to strengthen information security management in terms of hardware, software business development, real-time management of trends such as new media, and personnel. Meanwhile, the Corporation attaches great importance to the protection of customer such as "paperless equipment. as digital marketing information and trade secrets, and protects customer privacy through a series of management measures: digitalization", EHR Some production measures. human performance sites have realized full Rianlon has formulated the Confidentiality Management System classifying commercial management, etc., to coverage of digital and secrets related to business management information according to their importance, and has improve the integration automated production formulated the corresponding authority control, protection mechanism and approval process. of data-driven business and manufacturing Rianlon signs confidentiality agreements with all employees or establishes confidentiality management automation. modes, truly realizing clauses in employment contracts, specifying confidentiality requirements, confidentiality the interoperability of periods, liability for breach of contract, etc. Meanwhile, confidential employees are educated on logistics information and the legal system and knowledge of confidentiality before starting work, and all employees are improving efficiency. regularly educated on confidentiality to improve the awareness of confidentiality. The Corporation continuously promotes information construction and strengthens information security control through a series of management measures such as computer equipment security management, network security management, system change and operation control, [Case] Construction of EHS digital system authority control, password management, etc., to avoid information security risks. The Corporation signs confidentiality agreements with all customers or stipulates Rianlon promotes the standardization of EHS, establishes an EHS system, and constructs confidentiality clauses in contracts, and strictly implements them. The disclosure of customer dual prevention mechanisms, personnel positioning, change management, etc. to information is also explicitly prohibited in employee manuals and labor contracts. achieve the essential improvement of EHS digital management level and protect the In 2022, the Corporation the information security management safety in production. carried out a total of system construction covered 2 information security audits 65% of its business scope. 35 天津利安隆新材料股份有限公司 36 03 Green Development, Active Response to the "Carbon Peaking and Carbon Neutrality" Goals The ecological environment is a necessary condition for human survival and development, and an important part of ecological civilization construction. Rianlon adheres to the concept of green development throughout the entire process of product research and development, production, and operation, striving to become a practitioner of environmental management, a promoter of ecological civilization, and a builder of beautiful China. The Corporation continues to strengthen pollutant emission management, vigorously promote the rational use of resources, strengthen its own ability to tackle climate change and make "Rianlon" a core competitor for the sustainable development of China's chemical industry economy. Rianlon Hengshui Site was awarded the 2022 water- saving enterprise, Rianlon Zhongwei Site was awarded the 2022 Green Project of Ningxia Hui Autonomous Region, and Rianlon Hangu Site, Hengshui Site, and Zhongwei Site were awarded the 2022 National Green Factory. Implementation of "carbon peaking and carbon neutrality" management Further management of three wastes Rational utilization of resource Addressing climate change Making contributions to UN Sustainable Development Goals (SDGs) 37 天津利安隆新材料股份有限公司 38 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Implementation of "carbon peaking and Future commitments carbon neutrality" management Rianlon promises to continue to enhance the utilization of energy and resources, reduce carbon emissions, and reduce environmental impact by improving technology and promoting green In response to the national "carbon peaking and carbon neutrality" policy, Rianlon formulated the Carbon Emission production mode in 2023. Rianlon promises to reduce energy consumption by 3.1% in 2023. Management Systems in 2022 to clarify the carbon emission management policy and objectives, establish carbon emission management organization and guide the implementation of carbon emission operation and management. 3+1 Plan for Institutional and Information System Construction Further management of three wastes Optimize internal audit process and system for energy management; 2023 Rianlon strictly abides by national environmental protection laws and regulations and local government Publish manuals on energy conservation and low carbon production regulations, and has a special EHS management department and full-time environmental management personnel. Each production site has an environmental safety department and full-time environmental management Optimize energy management software personnel responsible for the management of the environmental protection system. The Corporation's production 2024 Publish manuals on energy conservation and low carbon in non-production sites are equipped with facilities for treating wastewater and exhaust pollutants and the facilities are operating sectors normally. The Corporation has excellent pollutant treatment effect, with emissions far below national and local emission standards. The Corporation monitors the discharge of water and gas pollutants online in real time and Optimize carbon emission management software reports the data to the local environmental protection regulatory authorities. Hazardous solid waste is stored in 2025 Integrate internal audit system of energy and release internal audit process designated locations that meet the requirements and entrusted to legal disposal companies for harmless disposal. and system for carbon emission management Rianlon has established a carbon peaking and carbon neutrality management team as the management Solid waste management organization for its carbon emission efforts. The carbon peaking and carbon neutrality management team is responsible for the Corporation's carbon peaking and carbon neutrality management goals, and Rianlon has issued the Implementation Measures for Standardized Management of Solid Waste each subsidiary is responsible for its own carbon peaking and carbon neutrality management goals. Each and Implementation Measures for Standardized Management of By-products to strengthen the subsidiary carries out various carbon emission reduction work under the guidance of the carbon peaking standardized management of solid waste and by-products. Hazardous solid waste is stored in and carbon neutrality management team, and regularly reports the work progress, plan, and accepts the designated locations that meet the requirements and entrusted to legal disposal companies for supervision and inspection of the carbon peaking and carbon neutrality management team. harmless disposal. The Corporation ensures that solid wastes and by-products are stored, disposed of and utilized in accordance with relevant national regulations, and actively implements the national requirements for the reduction, recycling and hazard-free treatment of solid waste. Optimize process to reduce emissions The Corporation takes targeted measures to deal with the three types of solid waste including In 2022, Rianlon sites successively achieved efficient use of energy and efficient operation of domestic waste, general solid waste, and hazardous waste as shown in the following table: products in the production process by improving management level, optimizing process equipment and using advanced energy-saving technologies, thus realizing the reduction of carbon emissions. In Types of solid waste Treatment measures Disposal measures 2022, a total of 2,562tCO2e of carbon emissions was reduced. Boiler slag and ash undergo compliant ash General solid waste Measures Carbon emission reduction(tCO2e) treatment Improve refined operation level and Domestic waste Clarify waste Disposed of by 843 reduce energy consumption qualified disposal Strictly follow the GB-18597-2001 Standard companies that Improve waste heat utilization level 1,246 for Pollution Control on Hazardous Waste have signed Use energy-saving equipment or technology 473 Hazardous waste Storage to design and build new hazardous waste storerooms to store hazardous waste Total 2,562 in a more standardized manner 39 天津利安隆新材料股份有限公司 40 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Waste gas management Unit 2020 2021 2022 [Case] 10,000 cubic Total exhaust emissions 232,965.80 190,524.54 301,779.84 In 2022, Rianlon's Zhongwei Site and Changshan Site added a set of sludge drying meters equipment for treating sewage and sludge (hazardous waste) and aluminum hydroxide Particulate matter Ton 22.51 15.17 18.99 (co-products) dehydration respectively to further realize solid waste reduction. Non-methane Ton 9.98 7.09 17.74 hydrocarbon Waste Management Unit 2020 2021 2022 Nitrogen oxides Ton 109.26 88.09 166.22 Total recyclable waste Ton 79.49 92.87 266.70 Sulfur oxides Ton 28.85 12.97 20.23 Total general solid waste Ton 16,848.96 34,553.27 12,350.74 VOC emissions Ton 17.14 8.21 4.04 Total general solid waste landfilled Ton 15,301.22 20,391.34 0 Sulfuric acid mist Total general solid waste incinerated Ton 25.30 16.05 96.50 Ton 1.45 0.85 1.06 emissions Total general solid waste recycled Ton 0 9,446.60 9,944.60 Hydrogen chloride Ton 0.51 0.27 1.44 Other total general solid waste Ton 1,522.44 4,699.28 2,309.64 emissions Total hazardous waste Ton 1,907.81 2,185.53 3,403.82 Total hazardous waste incinerated Ton 1,907.81 2,185.53 3,403.82 Wastewater management Waste gas management Rianlon places emphasis on wastewater treatment and is committed to reducing the impact of In view of all kinds of waste gas emitted, Rianlon takes multiple measures to strengthen the wastewater on the environment. The Corporation's wastewater mainly comes from wastewater treatment and emission reduction of waste gas, contributing to the protection and improvement produced during the production of UV absorbers and antioxidants, discharge of the boiler water of atmospheric environment. Among them: and domestic sewage. Tail gas from The tail gas from the fluidized bed boiler is emitted after being treated with The Corporation uses technologies such as acid-base neutralization treatment, multi effect boiler "bag dust removal + lime - limestone desulfurization + SNCR denitration" and evaporation, hydrolysis acidification, anaerobic treatment (such as UASB and IC), and aerobic being up to the standard. treatment (such as CASS and contact oxidation) for wastewater treatment. After the wastewater is treated by the Corporation's internal wastewater treatment station and reaches the prescribed Tail gas from The tail gas from the production process mainly comes from each production standard, it will be discharged by the park's sewage treatment plant. The total COD removal production workshop. The exhaust gas from the workshops is emitted after "condensation efficiency can reach 97% in the wastewater treatment process. process recovery + water spraying (alkali spraying)" into the RTO device for thermal decomposition treatment. The Corporation seals and collects waste gas from Wastewater management Unit 2020 2021 2022 sewage stations and sewage tanks, and uses regenerative thermal oxidizer or biological method to effectively treat pollution factors such as odor and Cubic Total wastewater discharge 675,452.00 816,367.00 766,053.60 VOCs emitted, effectively solving the odor problem generated during normal meters operation. The Corporation is now further reducing the emissions of VOCs on the basis of meeting the emission standards. The RTO treatment efficiency can Chemical oxygen demand(COD) Ton 117.06 152.63 139.03 reach 99%, further reducing the emissions of VOCs. 41 天津利安隆新材料股份有限公司 42 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Energy management Wastewater management Unit 2020 2021 2022 Rianlon attaches importance to energy management and has promulgated the Energy-Saving Five-day biochemical oxygen Accounting and Energy-Saving Incentive Management System to strengthen energy-saving Ton 4.81 11.39 12.14 demand(BOD5) incentives and formulate corresponding incentives for each production site. By setting up complete assessment standards and strengthening target-oriented responsibility system, the Suspended matter Ton 15.80 9.34 7.75 energy-saving targets are decomposed into each business line, and remarkable energy-saving effects have been achieved. Ammonia nitrogen Ton 4.74 15.71 8.74 Rianlon has formulated energy-saving technical specifications such as the Energy-saving Total phosphorus Ton 0.22 0.39 0.12 Standards for the Operation of Heat Transfer Oil Systems, Energy-saving Standards for the Operation of Water Circulation Systems, and Energy-saving Standards for the Operation of Power Supply, Distribution, and Motor Systems, which provide detailed requirements for energy- saving targets, energy measurement management, and energy-saving project management. Each production site of the Corporation conducts system optimization according to standards, continuously improving energy utilization efficiency. Rational utilization of resource Energy consumption Unit 2020 2021 2022 Cubic Natural gas 4,654,078 6,363,915 9,139,202 meters Water resource management Steam Ton 142,473 163,569 259,675 Efficient and responsible water resource management is an important element in the Raw coal Ton 40,619 51,375 47,111 sustainable development of Rianlon. The Corporation is committed to improving production processes, strengthening technological research, and striving to reduce water demand in order Gasoline Liter 65,833 82,098 129,586 to improve water resource utilization efficiency so that the Corporation can increase production without increasing water use, reduce water costs and protect the environment. Diesel oil Liter 54,680 133,622 156,589 Kilowatt- Purchased electricity 105,044,326 126,327,992 134,645,939 Water resource use Unit 2020 2021 2022 hour Municipal water purchasing Cubic 1,040,189 1,256,843 1,391,136 Renewable energy Ton 27,380 56,344 49,778 amount meters 43 天津利安隆新材料股份有限公司 44 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Addressing climate change Fully aware of the challenges and risks brought by global environmental change, Rianlon regards climate change as an important part of ESG management. The Corporation evaluates major climate-related issues [Case] Efficient water circulating pumps that have or are likely to have an impact on business operations and defines management responsibilities and actions related to climate risk governance. In 2022, the Corporation purchased efficient water circulating pumps through contracted energy management for professional flow design of impellers to remarkably improve efficiency. It's expected that the project can save electricity of 360,000 kWh/a, equivalent to standard coal of 44 tce/a. Impact Factor Impact Analysis Related Actions With the expansion of the carbon trading industry scale, Impact of carbon the Corporation's production sites are facing the situation [Case] Steam modification program accounting and of being included in the carbon emission trading system. If carbon trading carbon emissions exceed the quota, achieving compliance by In 2022, the Corporation selected a workshop to pilot steam modification for energy saving in a bid purchasing emission rights will increase operating costs. to better utilize the surplus heat of steam condensate and reduce heat loss. It's expected to save Establish a carbon steam of 2,500 t/a, equivalent to standard coal of 232 tce/a. peaking and carbon neutrality The EU's carbon border adjustment mechanism will cover all Impact of the management industries by 2030. After the "carbon tax" comes into effect, the EU's "carbon organization; requirement for carbon footprint tracking and management [Case] Changing the water circulating cooling fans from electric- tax" on imported will increase significantly, and the "carbon tax" will increase Develop carbon chemicals motor-driven to water-turbine-driven the cost of sales and squeeze profit margins. management policy objectives and management systems; In 2022, the Corporation transformed the water circulating cooling fans from electric-motor-driven Actively carry out to water-turbine-driven, which uses the pressure of returning water to drive the water turbine. It's In 2022, carbon emissions were included in emission permits energy-saving work; expected to save 127,000 kWh/a, equivalent to standard coal of 15.63 tce/a. Impact of carbon in some domestic provinces and cities, and are expected to Carry out carbon emissions gradually be implemented nationwide. At that time, carbon emission and product included in emissions will be required to be legal and compliant, and the carbon footprint emission pressure to reduce carbon will significantly increase, leading to accounting of legal permits an increase in operational costs for technology management entities to find investment. potential points of carbon reduction. Various "plastic restriction" activities such as eliminating white pollution and reducing the use of disposable plastic products will Impact of reduce the use of polymer materials, or at least cause a trend of global "plastic decreasing plastic consumption. Anti-aging additives for plastic restriction" are one of our main product series, so a decrease in plastic consumption will affect product sales, thereby affecting our business. 45 天津利安隆新材料股份有限公司 46 04 People-oriented, creating a happy workplace with all efforts Rianlon always believes that employees are its most precious wealth and resources. The Corporation resolutely safeguards the rights and interests of employees, highly values the growth of employees, focuses on the occupational safety of employees, implements employee care, and strives to create an equal, fair, harmonious, and amicable working environment, to realize the dream of enterprise development and employee development together. Safeguarding employees' rights and interests Supporting employee development Focusing on occupational safety Strengthening employee care UN Sustainable Development Goals (SDGs) 47 天津利安隆新材料股份有限公司 48 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Safeguarding employees' rights and interests By age Unit:Person Rianlon strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People's 2020 2021 2022 Republic of China, and other laws and regulations, prohibiting the employment of child labor, forced labor, restriction 240 245 394 of employee freedom, and other illegal employing actions. The Corporation prohibits any discrimination based on 373 531 race, sex, religion, age, social origin, and other factors. At the same time, the Corporation published the Labor Relations 645 Management System and the Recruitment, Onboarding, Probation, and Departure Management System, establishing a complete labor contract and employment management system. The Corporation pays five social-insurance and housing 634 provident funds according to law, provides statutory leave and paid annual leave, and arranges employees' working 543 799 hours according to the labor law, effectively protecting the legitimate rights and interests of employees. 746 917 1,103 Upholding the management philosophy of "rank by post, salary by rank, and person-post matching", Rianlon has established a scientific, reasonable, and dynamic remuneration management system, and issued the Joint-stock 51 or above 41-50 31-40 30 or below Company Remuneration Management System, forming a salary strategy oriented by post, individual ability, and performance evaluation. With the help of senior consultants hired, the Corporation has optimized and iterated the By region Unit:Person existing incentive system of remuneration, benefits, and performance to ensure that employees effectively get rewards and incentives in a timely way. 2020 2021 2022 4 19 4 18 4 20 Employee structure Number of employees Unit:Person By gender Unit:Person 2,941 3,000 3,000 2,500 2,327 2,500 2,115 1,902 1,879 2,305 2,000 2,000 2,917 1,664 1,349 1,500 1,500 826 Number of employees working Number of employees working in Number of employees working 1,000 1,000 553 663 in the Chinese mainland Hong Kong, Macau, and Taiwan in other countries and regions 500 500 0 0 2020 2021 2022 2020 2021 2022 By education Unit:Person Male Female 2020 2021 2022 By type of employment Unit:Person 9 11 10 92 126 118 2020 2021 2022 448 584 739 657 727 719 1,049 1,145 1,425 13 12 304 461 649 1,902 2,315 2,928 Ph.D. and professor Master Undergraduate Junior college Under junior college Labor dispatch system Labor contract system Others 49 天津利安隆新材料股份有限公司 50 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Type of employees Employee turnover Unit:Person Number of primary-level employees 500 100% Unit:Person 426 400 356 80% 3,000 2,820 280 300 60% 2,500 2,204 200 40% 2,000 1,800 51 53 100 20% 1,500 15% 15% 14% 2 0 0% 1,000 2020 2021 2022 500 Number of departing employees (permanent) Employee turnover rate 0 Number of departing employees (labor dispatch) 2020 2021 2022 By gender By region Middle management employees Senior management employees Unit:Person Unit:Person Unit:Person Unit:Person 500 500 426 150 50 355 400 400 331 120 40 96 94 280 300 265 300 27 27 90 80 30 203 22 200 200 60 20 27 77 91 97 30 10 100 100 10 16 5 5 6 0 1 2 0 0 0 0 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 Number of middle management employees Number of senior management employees Number of departing employees Male employees Female employees Number of middle management female employees Number of senior management female employees working in the Chinese mainland Number of departing employees By department Unit:Person working in other countries and regions By age Unit:Person 2020 2021 2022 230 2020 2021 2022 337 557 31 43 33 30 34 53 84 158 49 73 455 577 53 690 178 119 1,067 1,239 1,476 131 165 110 119 143 Production personne Sales personnel Technical personnel 51 or above 41-50 31-40 30 or below Financial personnel Administrative personnel 51 天津利安隆新材料股份有限公司 52 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Supporting employee development Rianlon adheres to the concept of "respecting the development direction selected by employees and assisting them in their development". The Corporation actively builds the career development system and expands the Employee training career development paths of talents to improve the professional ability of employees and guide them to form the awareness of independent learning and development, engaging in creating a talent team with refined Rianlon has established a sound training system and carried out training activities with abundant structure, high quality, and reasonable results. content and various forms. The Corporation has designed a "1+4" training plan according to the profession and rank. According to different levels and types of the post, the training was conducted for employees in management, profession, and skill sequence, as well as new employees hired Employee promotion path through campus recruitment, respectively. Dream Realization Project, Strong Eagle Project, and Fledgling Eagle Project are designed in line Rianlon designs career development paths in different directions. According to the nature of with post levels in management sequence, with the aim to broaden the vision of senior management posts, requirements of experience and skills, and responsibilities, the Corporation sets up a cadres and improve the executive ability of middle management cadres, so as to help them become clear promotion path for employees in different posts to facilitate their growth and increase the main force of the Corporation's operation. opportunities for their growth. The Corporation encourages employees to press forward and work hard for their career development goals. Sword Casting Project contains all training for employees in profession and skill sequence, including engineering technology ability certification program, business ability certification program, functional personnel ability certification program, and excellent team construction program. Dream Building Project is designed to provide intensive training on multiple aspects such as corporate culture and business understanding for employees hired through campus recruitment. Management Profession Profession Profession Skill sequence sequence sequence— sequence— sequence— At the same time, the Project helps the Corporation explore and specially cultivate talents in Technique Marketing Function innovation, management, and operation domains. President/Vice Chief scientist Senior account Subject matter Six-star worker Training system Key training programs in 2022 president Subject matter manager expert Five-star worker Director expert Advanced account Senior supervisor Four-star worker Department manager Senior engineer manage Business supervisor Three-star worker Section chief/ Intermediate Intermediate High commissioner Two-star worker General name Workshop director engineer account manager Junior One-star worker Team leader Junior engineer Junior account commissioner Program of building strong Assistant engineer manager Commissioner Dream Realization Project For senior management cadres business operation capabilities Technician Sales assistant (including For intermediate management Tester statistician in Strong Eagle Project cadres production sites) Capability enhancing program For primary-level management Fledgling Eagle Plan cadres For new employees Dream Building Project Engineering technology ability certification program Rank adjustment in the same post Post adjustment (Production technology, application Sword Casting technology) According to their performance, the Employees who meet the Corporation's Project Business ability certification program rank and corresponding remuneration requirements and press forward have Professional skills of all Functional personnel ability of employees in the post of the the opportunity to get jobs in other posts. employees are improved. certification program Key talents are identified and trained. Excellent team construction program sequence will be adjusted. Post adjustment includes job rotation Systematic talent teams are built. and job reshuffle. 53 天津利安隆新材料股份有限公司 54 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Employee growth [Case] Setting sail at Rianlon Program helps new employees Rianlon focuses on the development of employees and encourages them to improve build their dreams through professional quality through educational qualification upgrades and professional and vocational certifications. The Corporation carries out the work of educational qualification upgrades for In July 2022, Rianlon officially launched the Dream Building Project - Setting Sail at employees in profession, management, and skill sequence as well as senior executives, to Rianlon This special training is divided into three stages including online course learning, ensure the improvement of the Corporation's overall quality through the employees' upgrade in military training, and centralized training at headquarters. The training significantly their professional capabilities. enhances the professional quality and work skills of new employees and helps them complete the change of awareness and identity from a student on campus to an Support for the qualification upgrade of profession employees employee at the workplace. Rianlon encourages chemical personnel with bachelor's degree to apply for the major of Lanzhou University's Chemical Engineering and Technology. The Corporation provides subsidies for employees who get academic certificates. Support for the qualification upgrade of management employees Rianlon encourages middle and senior management to apply for part-time MBA. Support for the qualification upgrade of workers [Case] Team leader training Rianlon encourages workers to upgrade their personal ability and education, and gives them corresponding subsidies. As a cell of the Corporation, the team is the basic unit in the organizational chain. The team conducts all production and operation activities so it has been a foothold where the Corporation's decisions are implemented, all measures are adopted, and various tasks Support for the qualification upgrade of senior executives are completed. The team construction directly concerns the management effectiveness. In order to improve the management ability of team leaders and respond to the Rianlon encourages senior executives to participate in seminars on learning or programs requirements of the Mobilization Order for the construction of Strong Business Operation held by the government and social organizations. Capabilities issued by the president, the Corporation specially invited external experts to design the "Rianlon Team Leader Training" course in 2022. 55 天津利安隆新材料股份有限公司 56 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Employee training Unit 2020 2021 2022 Focusing on occupational safety Total number of employees covered by training Person 1,902 2,327 2,941 Upholding the policy of "safety, prevention, people first, and continuous improvement" on occupational health and safety management, we provide employees with a safer working environment. In 2022, according to actual Number of male employees production features and relevant emergency rescue provisions.Such drills strengthen the occupational safety Person 1,349 1,664 2,115 covered by training awareness of all departments and improve our holistic response capability and management level to emergencies. By gender 15 292 1,055 Number of female employees Person 553 663 826 attending training Number of primary-level company-level emergency drills about on- emergency drills about Person 1,800 2,204 2,762 employees covered by training emergency drills site management plans hazardous posts By types of Number of middle management The Corporation pays attention to the occupational health of employees through multiple supporting measures Person 80 96 144 such as providing regular physical examinations, necessary labor protection supplies, the infirmary, and the fitness employees employees covered by training and cultural activity center, to care about the occupational health and safety of employees in different dimensions. Number of senior management Person 22 27 35 employees covered by training [Case] Zhuhai Site carried out leak and fire drill Total hours of training for employees Hour(s) 45,648 69,810 102,935 In order to enhance the employees' management, coordination, and communication ability in response to hazardous chemical emergencies, the Zhuhai Site organized the "2022 Hazardous Chemical Leak, Average hours of training for employees Hour(s) 24 30 35 Poisoning, and Fire Emergency Drill". Jointly participated by all departments in the production site, the drill simulated dangerous emergencies such as chemical leaks, personnel poisoning, and fire. The activity implemented the work safety policy mentioned above and enhanced the employees' ability to Average hours of training for male Hour(s) 33,648 51,810 74,935 respond to safety accidents to minimize casualties and property losses. employees By gender Average hours of training for female Hour(s) 12,000 18,000 28,000 employees Average hours of training for Hour(s) 43,615 63,030 95,035 primary-level employees By types of Average hours of training for middle Hour(s) 1,732 6,240 7,200 employees management employees Average hours of training for senior Hour(s) 301 540 700 management employees 57 天津利安隆新材料股份有限公司 58 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Occupational health and safety Unit 2020 2021 2022 [Case] Zhongwei Site organized safety publicity activity Number of employees caused by Person 22 11 22 In June 2022, during National Work Safety Month, the Zhongwei Site organized a publicity contest with the work-related injuries Safety accidents theme of "Abide by the Law on Work Safety and be the First Responsible Person". A total of 13 employees and personnel participated in the publicity contest, from the Production Department, Safety and Environmental Protection Number of accidents caused by Times 20 10 21 Department, Quality Control Department, Enterprise Management Department, and General Control Room. work-related injuries The activity made employees deeply realize that work safety not only guarantees personal occupational Number of work-related safety but also is an important lifeline for the development of the Corporation. Person 0 0 0 employee death Number of employees in positions with risks of Person 1,658 1,640 2,318 Employee health occupational diseases and safety Number of employees attending occupational disease Person 1,658 1,640 2,318 examinations Number of employees suffering Person 0 0 0 occupational diseases Investment in occupational RMB 384.84 507.30 526.78 health and safety of employees 10,000 Investment in health and safety RMB Investment in work safety 2,981.25 5,857.81 6,795.94 10,000 Strengthening employee care Rianlon always values employee care and has developed the Employee Basic Welfare Management System and the Employee Retirement and Rehiring Management System. The Corporation pays close attention to the living conditions of employees and listens to their opinions carefully. The Corporation carries out various forms of employee care activities to help employees achieve work-life balance and takes practical actions to care about employees to enhance the sense of belonging and identity to the Corporation. The Corporation is concerned about and helps special groups and groups with difficulties, and launches multiple barrier- free measures, including accessible passage and toilets in the park, to ensure the secure, convenient work and life of employees with disabilities. By the end of 2022, the Corporation has employed 20 employees with disabilities. At the same time, Rianlon is committed to providing employees with a sound, diversified environment for cultural and sports activities, encouraging employees to strengthen physical exercise and cultivate personal interests after work. The Corporation actively organizes various culture and sports activities, such as team building, concerts, sports competitions, etc., to relieve the professional pressure of employees and enrich their spare time life, encouraging employees to work happily. 59 天津利安隆新材料股份有限公司 60 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home [Case] Zhongwei Site cares employees with difficultiesactivity [Case] Hengshui Site carried out activities on Women's Day During New Year's Day in 2022, the Trade Union representatives, members of the Party Branch In March 2022, the Hengshui Site launched a series of activities on Women's Day, fully Committee, and members of the Trade Union of the Zhongwei Site visited the employees with demonstrating the positive, united, and fighting spirit of women in the new era. difficulties and sent them holiday greetings, condolence payments, and condolence gifts, narrowing the distance between employees with difficulties and the Corporation. [Case] The Corporation held an employee tug-of-war competition In June 2022, the Corporation held the first employee tug-of-war competition. The activity not only intensified the competitors' bodies but also spurred the vitality of all employees, enhancing the employee relationship. [Case] Changshan Site offered employees' children gifts on Children's Day On June 1, 2022, the Changshan Site sent 108 employees' children exquisite gifts and festive greetings on Children's Day, making them feel the deep love of their parents and the Corporation. [Case] "Home for caring about mommy demonstration site" Based on safeguarding the rights and interests of employees, to improve their happiness and sense of gain, Rianlon has been actively responding to the instructions of expanding the care for female employees issued by the Dongjiang Port Federation of Trade Unions, safeguarding the special rights and interests of female employees. The Corporation upgraded the baby care room into a unique "home for caring about mommy", which was highly recognized by the Tianjin Binhai New Area Federation of Trade Unions and the Dongjiang Port Federation of Trade Unions. In January 2022, the Trade Union of Rianlon supply chain was awarded the medal of honor of "Home for Caring About Mommy Demonstration Site". 61 天津利安隆新材料股份有限公司 62 05 Repaying Society and Jointly Creating a Better, Harmonious Home Rianlon firmly implements the national policy of common prosperity to facilitate the construction of public welfare and has established a social contribution system to improve people's livelihood. After years of development, our social contribution system is increasingly complete, forming a multi-level responsibility management system across the board including employment, tax, technological innovation, and industrial investment. The Corporation engages in various public welfare and charitable undertakings to promote the common development of the Corporation and society and repays the school by establishing Tianjin University Innovation and Entrepreneurship Scholarship. At the same time, the Corporation also attaches great importance to sharing and cooperating with other industries, closely seizing new opportunities for industrial development. Facilitating common prosperity Contributing to community welfare Sharing development achievements Making contributions to UN Sustainable Development Goals (SDGs) 63 天津利安隆新材料股份有限公司 64 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Facilitating common prosperity Contributing to community welfare Rianlon actively responds to national policies and fully implements the strategic plan for rural revitalization Rianlon believes that supporting public welfare and repaying society with practical actions is an important window and common prosperity. The Corporation fully leverages its advantages to actively implement common for showing its social responsibility, and is also an integral part of Rianlon corporate culture. In 2022, Rianlon prosperity projects and participates in local rural revitalization work to facilitate local economic development. production sites practiced a series of public welfare activities, such as financial assistance for students, visiting According to the actual situation of different regions, the Corporation conducts various kinds of projects to lonely elderly people, voluntary services, and environmental protection, further strengthening the harmonious benefit the people within its capacity to further narrow the relationship between the Corporation and local relationship between the Corporation and society. The Corporation supported charitable undertakings through towns, improving the brand image and contributing to local economic construction. practical actions, mirroring the responsibility and accountability of private enterprises. Data on common prosperity/rural Data on public welfare Unit 2020 2021 2022 Unit 2020 2021 2022 revitalization Amount of investment in public welfare RMB 10,000 219.05 240.95 237.16 Values of rural revitalization supplies RMB 10,000 25.85 9.92 2.4 Amount of investment in financial RMB 10,000 210 210 230 assistance for students Amount of investment in rural RMB 10,000 1.8 2.3 1.7 Amount of investment in lonely elderly students RMB 10,000 6.45 6.48 6.71 people Number of students funded in rural Person 6 10 7 Number of employees attending areas Person 80 110 166 voluntary activities Average hours of employees attending Hour(s) 4 2.4 3.1 voluntary activities [Case] Rianlon Kerun constructed a village-enterprise common prosperity demonstration site Financial assistance for students To fully implement the rural revitalization strategy, the Corporation plans the harmonious development of enterprises and surrounding villages to create a demonstration site for the common prosperity of villages and enterprises. In 2022, Rianlon Kerun (Zhejiang) New Materials Co., LTD., conducted a [Case] Changshan Site provided financial assistance for condolence activity of sending cooling equipment to Shuinan Village, Qingshi Town, Changshan County bright students and Donggang Village, Tianma Subdistrict and discussed with the two committees on the "construction of village-enterprise common prosperity demonstration site". Over the years, Rianlon Kerun has been providing financial assistance for bright students and regarding it as a crucial job of village-enterprise construction. In the past five years, Rianlon Kerun has helped more than 30 students in two villages. The Site hopes students cherish the time to pursue dreams and more importantly, seize every possible opportunity to study hard because the university is not a foothold but a starting point. The Site also expects them to return home after graduation to repay society, their hometown, and their parents. In 2022, the Changshan Site held the "Financial Assistance to Help Students Set Sail in Golden Autumn" activity in Shuinan and Donggang Village and awarded prizes to excellent college students in the two villages. 65 天津利安隆新材料股份有限公司 66 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Care services for the elderly Green public welfare [Case] Hengshui Site carried out Spring Festival visits to [Case] Zhongwei Site conducted voluntary tree-planting the elderly campaign The Corporation is committed to delivering warmth, caring for the elderly, promoting harmony, In 2022, the Zhongwei Site organized a voluntary spring tree-planting campaign to build a and boosting employment. Caring for the elderly is an important way to fulfill our social "beautiful ecological park". By voluntarily planting more than 140 trees, the Site practiced the responsibility, which is conducive to establishing a good social image and forming harmonious ecological awareness of "planting and protecting trees to expand green area" and enhanced the community relations. Before the Spring Festival in 2022, in order to provide the elderly living in awareness of environmental protection. The campaign fostered the team spirit of cooperation the surrounding villages and towns with a more warm and peaceful festival, the Hengshui Site and intensified the concept of being enthusiastic about work. The responsibility for adding green organized employees to send New Year gifts and regards to the elderly over 60 years old in the to our homeland bolstered employees to contribute to environmental protection, promoting Youjiadian and Xizhangzhuang Village, making them feel the warmth and blessing from Rianlon. the green, high-quality development of enterprises in the park. Voluntary blood donation [Case] Hengshui Site organized voluntary blood donation In order to relieve the shortage of local bloodstock and demonstrate the selfless Sharing development achievements dedication of the Chinese nation, the Hengshui Site called on all employees to donate blood voluntarily in April 2022. A total of 155 employees took part in the activity, with a Industry communication blood donation of 55,800ml, devoting love via practical actions. Rianlon attaches great importance to sharing development achievements and actively takes part in industry activities to exchange with peer companies on the issues such as technological innovation, green development, and industry opportunities. The Corporation takes initiative to join the industry associations and is widely recognized, promoting the harmony and stability of industry development and creating a good external environment for the development of the Corporation. At the same time, in order to enhance the competitiveness of enterprise products in domestic and foreign markets and promote the industry development, the Corporation takes an active part in and organizes technical exchange activities within the industry to strengthen the exchanges with relevant enterprises and research institutes at home and abroad. By the end of 2022, the Corporation has joined 18 well-known domestic and foreign associations regarding the domains such as engineering plastics, auto and electronic appliance, agriculture and construction, polyester, rubber and elastomer, oil, as well as coating and adhesive. 67 天津利安隆新材料股份有限公司 68 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Industry communication Association Industry Membership China Plastic Additive Association of CPPIA Engineering plastics Deputy director unit [Case] Rianlon "K-Show" journey China Synthetic Resin Association Engineering plastics Vice president unit In October 2022, the world's largest Trade Fair for Plastics and Rubber (K-Show for short) opened in Dusseldorf, Germany. Three years later, Rianlon embarked on the Modification Plastics Branch of China Engineering plastics Director unit journey of K-Show again, with a series of heavyweight, efficient, and innovative Synthetic Resin Association antioxidants and light stabilizers, to show Rianlon's development results in the plastics Color Master Batch Professional Committee and rubber industry to the world. of China Plastics Dyestuff Industry Engineering plastics Member unit Association China Auto Lightweight Non-metal Materials Auto and electronic Member unit Industrial Alliance appliances Agriculture and China Agricultural Film Association of CPPIA Member unit construction China Plastics-wood Composite Products Agriculture and Member unit Association of CPPIA construction Polycarbonate Branch of China Synthetic Polyester Member unit Resin Association China Polyurethane Industry Association Polyester Member unit ABS Branch of China Synthetic Resin Polyester Member unit Association China Synthetic Rubber Industry Association Rubber and elastomer Vice president unit TPE Branch of China Synthetic Rubber [Case] China Synthetic Rubber Industry Development Industry Association Rubber and elastomer Vice president unit Conference Synthetic Latex Branch of China Synthetic Rubber and elastomer Director unit In August 2022, China Synthetic Rubber Rubber Industry Association Industry Development Conference was held Polyolefin Branch of China Synthetic Resin in Jinan City, Shandong Province. Rianlon Polyolefin Member unit Association was invited to attend this conference and Chinese Society for Internal Combustion made a wonderful report Rianlon Anti- Oil Member unit Engines aging Additives for Green and Low-carbon Development of the Industry. Upholding Oil and Clean Fuel Branch of Chinese Society Oil Member unit the corporate mission of "creating a better for Internal Combustion Engines life with chemistry and biology", Rianlon constantly develops green, environmentally China National Coatings Industry Coating and adhesive Member unit friendly anti-aging additives products and technologies to strive to become a global Association leader in polymer materials anti-aging technology, contributing to the anti-aging China Adhesives and Tape Industry technology progress of the rubber industry. Coating and adhesive Non-member unit Association 69 天津利安隆新材料股份有限公司 70 Comprehensively Improving Governance Steadily Advancing Industrial Layout with Green Development, Active Response to the People-oriented, creating a happy Repaying Society and Jointly Creating Through Steady Operation Innovation Taking the Leading Role "Carbon Peaking and Carbon Neutrality" Goals workplace with all efforts a Better, Harmonious Home Industry-university-research cooperation ESG Performance Table In the process of rapid development, we focus on the technological innovation and commercialization of technological achievements, and actively promote cooperation between industries, universities, Waste Management Unit 2020 2021 2022 and research institutes as well as the commercialization of technological achievements. We have Total recyclable waste Ton 79.49 92.87 266.70 established cooperative relations with Tianjin University, Zhejiang University of Technology, other domestic colleges, universities, research institutes, and carried out many school-enterprise cooperative Total general solid waste Ton 16,848.96 34,553.27 12,350.74 research projects. The joint development between industries, universities, and research institutes has Total general solid waste achieved remarkable results, providing strong technical support for our rapid development. In 2019, the Ton 15,301.22 20,391.34 0 landfilled Corporation set up an education development fund of 10 million RMB at Tianjin University to support innovation and entrepreneurship work and established Total general solid waste Data on cooperation between Ton 25.30 16.05 96.50 Rianlon Innovation and Entrepreneurship Scholarship incinerated industries, universities, and at Tianjin University. The Corporation builds the brand research institutes in 2022 Total general solid waste of "excellent employer" in headquarters and production Ton 0 9,446.60 9,944.60 recycled sites and encourages the local employment strategy of Number of cooperative 8 Other total general solid waste Ton 1,522.44 4,699.28 2,309.64 school-enterprise cooperation in the place where each schools production site operates, creating thousands of local jobs Total hazardous waste Ton 1,907.81 2,185.53 3,403.82 Number of cooperative and helping the region to shake off poverty together with 12 projects Total hazardous waste the agricultural assistance plan. Ton 1,907.81 2,185.53 3,403.82 incinerated Cooperative school Descriptions of cooperation Tianjin University Development of salidroside fermentation technology Waste gas management Unit 2020 2021 2022 Development of new products and processes of 10,000 cubic Zhejiang University Total exhaust emissions 232,965.80 190,524.54 301,779.84 polymer functional additives meters Changchun University of Development of nano-scale water-based antioxidant Particulate matter Ton 22.51 15.17 18.99 Technology preparation technology Non-methane hydrocarbon Ton 9.98 7.09 17.74 Tianjin University of Science and Process development and equipment design of light Nitrogen oxides Ton 109.26 88.09 166.22 Technology stabilizers Sulfur oxides Ton 28.85 12.97 20.23 Quzhou University Optimization of synthesis technology of UV absorbent UV-P VOC emissions Ton 17.14 8.21 4.04 Zhejiang University of Technology Development and design of distillation equipment Sulfuric acid mist emissions Ton 1.45 0.85 1.06 Zhejiang University of Technology Development of green synthesis technology for light stabilizer Hydrogen chloride emissions Ton 0.51 0.27 1.44 Development of green synthesis technology of light Zhejiang University of Technology stabilizer and catalyst Liaoning Petrochemical College Joint efforts, etc Wastewater management Unit 2020 2021 2022 Liaoning Petrochemical College Project of Salicylate analysis methods Cubic Total wastewater discharge 675,452.00 816,367.00 766,053.60 meters Liaoning Petrochemical College Methods for analysis of lubricating oil additives Chemical oxygen demand School of Chemical & Ton 117.06 152.63 139.03 (COD) Environmental Engineering, Construction of the joint training base for graduates Liaoning University of Technology Five-day biochemical oxygen Ton 4.81 11.39 12.14 demand(BOD5) 71 天津利安隆新材料股份有限公司 72 Wastewater management Unit 2020 2021 2022 Packaging consumable Unit 2020 2021 2022 Suspended matter Ton 15.80 9.34 7.75 Total Ton 5,608 8,233 9,597 Ammonia nitrogen Ton 4.74 15.71 8.74 Wood Ton 2,006 2,828 2,961 Plastics Ton 685 1,404 2,024 Total phosphorus Ton 0.22 0.39 0.12 Paper Ton 1,789 2,516 2,404 Metal Ton 1,129 1,485 2,208 Water resource use Unit 2020 2021 2022 Municipal water purchasing Cubic 1,040,189 1,256,843 1,391,136 amount meters Employee structure Unit 2020 2021 2022 Number of employees Person 1,902 2,327 2,941 Energy consumption Unit 2020 2021 2022 Male Person 1,349 1,664 2,115 By gender Cubic Female Person 553 663 826 Natural gas 4,654,078 6,363,915 9,139,202 meters Labor contract system Person 1,902 2,315 2,928 Steam Ton 142,473 163,569 259,675 By type of employment Labor dispatch system Person 0 12 13 Raw coal Ton 40,619 51,375 47,111 Others Person 657 727 719 Gasoline Liter 65,833 82,098 129,586 51 or above Person 240 245 394 Diesel oil Liter 54,680 133,622 156,589 41-50 Person 543 634 799 By age Kilowatt- Purchased electricity 105,044,326 126,327,992 134,645,939 31-40 Person 746 917 1,103 hour Renewable energy Ton 27,380 56,344 49,778 30 or below Person 373 531 645 Number of employees working Person 1,879 2,305 2,917 in the Chinese mainland Transportation Unit 2020 2021 2022 Number of employees working in Total kilometers of By region Person 4 4 4 kilometer 764,827 906,538 1,516,494 Hong Kong, Macau, and Taiwan transportation Number of employees working Number of private fuel Person 19 18 20 - 14 23 60 in other countries and regions vehicles Kilometers of private fuel Ph.D. and professor Person 9 11 10 kilometer 476,407 535,873 1,144,022 vehicles Master Person 92 126 118 Number of electric trucks - 5 23 51 By education Undergraduate Person 448 584 739 Kilometers of electric trucks kilometer 140,805 198,540 175,340 Number of fuel trucks - 10 10 14 Junior college Person 304 461 649 Kilometers of fuel trucks kilometer 147,615 172,125 197,132 Under junior college Person 1,049 1,145 1,425 73 天津利安隆新材料股份有限公司 74 Employee structure Unit 2020 2021 2022 Employee turnover Unit 2020 2021 2022 Number of primary-level Number of departing Person 1,800 2,204 2,820 employees employees working in the Person 280 355 426 Number of middle Chinese mainland Person 80 96 94 By region management employees Number of departing Number of middle employees working in other Person 0 1 2 management female Person 10 16 27 countries and regions Type of employees employees Number of senior Person 22 27 27 management employees Employee training Unit 2020 2021 2022 Number of senior management female Person 5 5 6 employees Total number of employees covered by training Person 1,902 2,327 2,941 Production personnel Person 1,067 1,239 1,476 Number of male employees Person 1,349 1,664 2,115 covered by training By gender Sales personnel Person 119 131 165 Number of female employees Person 553 663 826 attending training By department Technical personnel Person 455 577 690 Number of primary-level Person 1,800 2,204 2,762 employees covered by training Financial personnel Person 31 43 53 Number of middle Administrative personnel Person 230 337 557 By types of employees management employees Person 80 96 144 covered by training Number of senior management Person 22 27 35 employees covered by training Employee turnover Unit 2020 2021 2022 Total hours of training for employees Hour(s) 45,648 69,810 102,935 Number of departing employees (permanent) Person 280 356 426 Average hours of training for employees Hour(s) 24 30 35 Number of departing employees (labor dispatch) Person 51 53 2 Average hours of training for Employee turnover rate % 15 15 14 Hour(s) 33,648 51,810 74,935 male employees By gender Male employees Person 203 265 331 Average hours of training for Hour(s) 12,000 18,000 28,000 By gender female employees Female employees Person 77 91 97 Average hours of training for Hour(s) 43,615 63,030 95,035 51 or above Person 33 30 34 primary-level employees Average hours of training 41-50 Person 53 49 73 By types of employees for middle management Hour(s) 1,732 6,240 7,200 By age employees 31-40 Person 110 119 143 Average hours of training for 30 or below Person 84 158 178 Hour(s) 301 540 700 senior management employees 75 天津利安隆新材料股份有限公司 76 Occupational health and safety Unit 2020 2021 2022 Social welfare Unit 2020 2021 2022 Number of employees caused Person 22 11 22 Number of employees attending voluntary by work-related injuries Person 80 110 166 Safety accidents activities and personnel Number of accidents caused Times 20 10 21 by work-related injuries Average hours of employees attending voluntary Hour(s) 4 2.4 3.1 Number of employees who activities Person 0 0 0 died due to work Number of employees in positions risking Person 1,658 1,640 2,318 occupational diseases Supply chain Unit 2020 2021 2022 Employee health and safety Number of employees having occupational Person 1,658 1,640 2,318 Total number of suppliers - 265 308 420 disease examinations Number of employees suffering occupational Person 0 0 0 Chinese mainland suppliers - 243 280 391 diseases Investment in occupational RMB Hong Kong, Macao, Taiwan, and overseas health and safety of 384.84 507.30 526.78 - 22 28 29 10,000 suppliers Investment in employees health and safety RMB Investment in work safety 2,981.25 5,857.81 6,795.94 Percentage of suppliers that have signed the 10,000 % 26% 32% 45% Code of Conduct Percentage of suppliers signing clauses containing environmental and labor % 75% 81% 83% Common prosperity/Rural revitalization Unit 2020 2021 2022 requirements RMB Values of rural revitalization supplies 25.85 9.92 2.4 10,000 Number of suppliers that have conducted social - 200 250 350 impact assessments RMB Amount of investment in rural students 1.8 2.3 1.7 10,000 Number of suppliers that have conducted Number of students funded in rural areas Person 6 10 7 - 200 250 350 environmental impact assessments Percentage of new suppliers selected using % 50% 90% 100% Social welfare Unit 2020 2021 2022 environmental standards RMB Amount of investment in public welfare 219.05 240.95 237.16 10,000 Percentage of new suppliers screened using % 50% 90% 100% social criteria Amount of investment in financial assistance for RMB 210 210 230 students 10,000 Percentage of internal purchasers who have RMB % 100% 100% 100% Amount of investment in lonely elderly people 6.45 6.48 6.71 participated in sustainable purchasing training 10,000 77 天津利安隆新材料股份有限公司 78 Global Reporting Initiative (GRI) Content Index Rianlon has reported the information cited in this GRI content index for the period from January 1, 2022 to 2-17 Collective knowledge of the highest Social responsibility December 31, 2022 in accordance with GRI standards. governance body management Safeguarding GRI standard Disclosure item Location 2-19 Remuneration policies employee rights and 2-1 Organizational details About This Report interests 2-2 Entities included in the organization's Safeguarding About This Report sustainability reporting 2-20 Process to determine remuneration employee rights and interests 2-3 Reporting period, frequency and contact point About This Report 2-22 Statement on sustainable development Social responsibility 2-4 Restatements of information About This Report strategy management GRI 2: General Disclosures 2-5 External assurance / 2021 Social responsibility 2-23 Policy commitments management 2-6 Activities, value chain and other business Strengthening supplier relationships management Social responsibility 2-24 Embedding policy commitments management Fully Creating a Happy 2-7 Employees Workplace by Putting Internal control and 2-27 Compliance with laws and regulations People First compliance operation Safeguarding Industry 2-28 Membership associations 2-8 Workers who are not employees employee rights and communication interests Social responsibility GRI 2: General Disclosures 2-29 Approach to stakeholder engagement Internal control and management 2021 2-9 Governance structure and composition compliance operation Social responsibility 3-1 Process to determine material topics 2-10 Nomination and selection of the highest Internal control and management governance body compliance operation Social responsibility GRI 3: Material Topics 2021 3-2 List of material topics Internal control and management 2-11 Chair of the highest governance body compliance operation Social responsibility 3-3 Management of material topics 2-12 Role of the highest governance body in Internal control and management overseeing the management of impacts compliance operation 201-2 Financial implications and other risks and Fighting climate 2-13 Delegation of responsibility for managing Internal control and opportunities due to climate change change impacts compliance operation GRI 201: Economic Performance 2016 Safeguarding 201-3 Defined benefit plan obligations and other 2-14 Role of the highest governance body in Social responsibility employee rights and retirement plans sustainability reporting management interests Internal control and 203-1 Infrastructure investments and services Supporting common 2-15 Conflicts of interest compliance operation GRI 203: Indirect Economic supported prosperity Social responsibility Impacts 2016 Contributing to 2-16 Communication of critical concerns 203-2 Significant indirect economic impacts management community welfare 79 天津利安隆新材料股份有限公司 80 205-1 Operations assessed for risks related to Paying close attention Further management corruption to be clean and honest 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), of industrial GRI 305: Emissions 2016 and other significant air emissions wastewater, waste 205-2 Communication and training about anti- Paying close attention GRI 205: Anti-Corruption 2016 gases, and residues corruption policies and procedures to be clean and honest Further management 205-3 Confirmed incidents of corruption and Paying close attention 306-1 Waste generation and significant waste of industrial actions taken to be clean and honest related impacts wastewater, waste Rational use of gases, and residues 301-1 Materials used by weight or volume resources Further management Rational use of 306-2 Management of significant waste related of industrial GRI 301: Materials 2016 301-2 Recycled input materials used resources impacts wastewater, waste gases, and residues 301-3 Reclaimed products and their packaging Rational use of materials resources Further management of industrial Rational use of GRI 306: Waste 2020 306-3 Waste generated 302-1 Energy consumption within the organization wastewater, waste resources gases, and residues 302-2 Energy consumption outside of the Rational use of Further management organization resources of industrial Rational use of 306-4 Waste diverted from disposal GRI 302: Energy 2016 302-3 Energy intensity wastewater, waste resources gases, and residues Rational use of Further management 302-4 Reduction of energy consumption resources of industrial 306-5 Waste directed to disposal 302-5 Reductions in energy requirements of Rational use of wastewater, waste products and services resources gases, and residues Rational use of 308-1 New suppliers that were screened using Responsible supply 303-1 Interactions with water as a shared resource resources GRI 308: Supplier environmental criteria chain Environmental Assessment Further management 2016 308-2 Negative environmental impacts in the Responsible supply 303-2 Management of water discharge-related of industrial supply chain and actions taken chain impacts wastewater, waste gases, and residues Safeguarding GRI 303: Water and Effluent Rational use of 401-1 New employee hires and employee turnover employee rights and 303-3 Water withdrawal 2018 resources interests Further management 401-2 Benefits provided to full-time employees Safeguarding of industrial GRI 401: Employment 2016 that are not provided to temporary or part-time employee rights and 303-4 Water discharge wastewater, waste employees interests gases, and residues Safeguarding Rational use of 401-3 Parental leave employee rights and 303-5 Water consumption resources interests 81 天津利安隆新材料股份有限公司 82 Safeguarding 413-1 Operations with local community 403-1 Occupational health and safety management Community welfare employee rights and engagement, impact assessments, and system GRI 413: Local Communities construction interests development programs 2016 Safeguarding 413-2 Operations with significant actual and Community welfare 403-2 Hazard identification, risk assessment, and employee rights and potential negative impacts on local communities construction incident investigation interests 414-1 New suppliers that were screened using Responsible supply Safeguarding GRI 414: Supplier Social social criteria chain 403-3 Occupational health services employee rights and Assessment 2016 414-2 Negative social impacts in the supply chain Responsible supply interests and actions taken chain Safeguarding 403-4 Worker participation, consultation, and Supporting common employee rights and GRI 415: Public Policy 2016 415-1 Political contributions communication on occupational health and safety prosperity interests GRI 416: Customer Health and 416-1 Assessment of the health and safety impacts Product quality and Safeguarding 403-5 Worker training on occupational health and Safety 2016 of product and service categories safety employee rights and safety GRI 403: Occupational Health interests 417-1 Requirements for product and service Customer relationship and Safety 2018 information and labeling maintenance Safeguarding 403-6 Promotion of worker health employee rights and GRI 417: Marketing and 417-2 Incidents of non-compliance concerning Customer relationship interests Labeling 2016 product and service information and labeling maintenance 403-7 Prevention and mitigation of occupational Safeguarding 417-3 Incidents of non-compliance concerning Customer relationship health and safety impacts directly linked by employee rights and marketing communications maintenance business relationships interests Safeguarding 403-8 Workers covered by an occupational health employee rights and and safety management system interests Safeguarding 403-9 Work-related injuries employee rights and interests Safeguarding 403-10 Work-related ill health employee rights and interests 404-1 Average hours of training per year per Supporting employee GRI 404: Training and employee development Education 2016 404-2 Programs for upgrading employee skills and Supporting employee transition assistance programs development Safeguarding GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employee rights and Opportunity 2016 employees interests 83 天津利安隆新材料股份有限公司 84 Reader Feedback Form Dear readers, Thank you for taking the time to read this Report. 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Yes □ Fair □ No □ 7.Your comments and recommendations on the Corporate Social Responsibility Report of Rianlon 2022 are welcome. You can inform us of your valuable comments by: Tel: +86 22 83718817/ +86 22 83718817-8159 Fax: +86 22 83718815 Add: 20th Floor, Building F, 20 Kaihua Road, Huayuan Industrial Park, Nankai District, Tianjin Postcode: 300384 85 天津利安隆新材料股份有限公司 86