Sustainability

1. The company always adheres to the development strategy of scale, green, intelligence and low cost. The company has insight into the needs of society and customers, focusing on the environment, society and governance, focusing on the field of high-tech and high-value-added chemical new materials. The selected projects are encouraged projects, and the products are closely related to the quality of life of the people. Relying on continuous technological innovation and operation optimization, the company strives to reduce the impact of its own production operations on climate, environment and resources. The process is adjusted from intermittent to continuous. The new process improves product quality while producing almost no waste residue and wastewater. The equipment that has been put into operation for more than three years has realized a 100% coverage rate of ISO 9001 quality management system certification, ISO 14001 environmental management system certification and ISO 45001 occupational health and safety management system certification.

2. The company continues to increase its environmental protection efforts to create a green ecological factory.

The company has formulated an annual testing plan for environmental pollution factors such as wastewater, waste gas, and noise in accordance with relevant national laws and regulations, standards, environmental impact assessment reports, comprehensive compliance emission regulations, and the frequency of testing of various pollution factors in the pollutant discharge permit, and clarified the frequency of testing of various pollutant emissions and reported to the local environmental regulatory department. The company has formulated the "Self-Testing Plan of Shandong Longhua New Materials Co., Ltd." and regularly conducts emission tests of wastewater, waste gas, noise, soil, and groundwater in accordance with the testing plan and conducts self-testing as required.

In order to improve the level of sewage treatment, the company has invested approximately 5 million yuan since October 2023 to upgrade and transform the sewage treatment system. The project has been upgraded and transformed in June 2024, and has sufficient capacity to ensure that production wastewater meets the discharge standards. In order to better ensure that the waste gas of the production equipment is stably discharged up to standard, the company invested about 3 million yuan to dismantle the original 10,000 cubic meter RTO furnace from April 2024 and build a 60,000 cubic meter RTO furnace to further improve the waste gas treatment capacity. The project is scheduled to be completed in August 2024, so that the production plant is odorless. The company's total waste gas discharge port is equipped with a real-time online waste gas system, and real-time data is uploaded to the platforms of the Zibo Municipal Ecological Environment Bureau and the National Ecological and Environmental Protection Department . The company's solid waste is entrusted to environmental protection companies with corresponding qualifications for treatment.

3. Realize the integration of digital ecological systems to support the company's new round of high-quality development

With the gradual implementation of digital systems such as DCS, MES, ERP, CRM, electronic signatures, online product testing, intelligent three-dimensional warehouses, and logistics cards, the company has realized the "end-to-end" digital interconnection of the entire value chain of procurement, production, R&D, sales, logistics, and services. The core data is fully visible at a glance, and real-time decisions can be made to better create value for customers and support the company's new round of high-quality development.