SUSTAINABILITY

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Social Overview

Responsible operation is the foundation of Capchem's sustainable development and Win-win is always the constant pursuit of Capchem. The Company adheres to a customer-centric philosophy, continuously improves our service system to enhance customer service quality and satisfaction，creates a safe and healthy production and operation environment, and provides green and reliable product and service solutions. The Company insists on building a supply chain ecology with a responsible attitude, attaches importance to talent development and incentive, and makes every effort to protect the rights and benefits of employees. We also actively participate in public welfare and charitable activities to give back to the community with practical actions, showing the responsibility and commitment of Capchem.

Innovation-driven

Capchem is committed to becoming a global leader in electronic chemicals and functional materials. The Company continuously builds a world-class R&D system and high-performing R&D teams, deeply integrates AI technology to improve R&D efficiency and product quality, and drives industry chain collaborative innovation through significant R&D investments. At the same time, Capchem strengthens intellectual property protection to effectively stimulate R&D innovation and commercialization of R&D outcomes.

Product Quality

Capchem consistently upholds its quality policy of "accurately understand customer needs, strictly adhere to quality standards, continuously improve service quality, ensure doing it right the first time, and pursue complete customer satisfaction." The Company has established a comprehensive quality management ecosystem to earn customer trust through high-quality products and superior services.

Chemical Safety

Capchem consistently implements the chemical safety management policy of "accurately identifying risks, reducing harmful effects, and eliminating safety and environmental hazards," strengthening the chemical safety management system, practicing green chemistry, and laying a solid foundation for sustainable development.

Occupational Health and Safety

Upholding the safety development philosophy of "people-oriented and life supremacy," the Company emphasizes source control by adopting green materials, green processes, and advanced technical equipment, and continues to invest in improving the working environment. Capchem equips and enforces the use of high-standard labor protective equipment, and conducts occupational health examinations on a regular basis to prevent and control occupational disease hazards, thereby safeguarding employees' occupational health. Leveraging advanced technologies and scientific management approaches, the Company is committed to building intrinsic safety across the entire process, value chain, and lifecycle of electronic chemicals and functional materials.

Customer Services

Capchem adheres to a "customer-centric" service philosophy, continuously improving its customer service management system through digital and intelligent systems. The Company standardizes service processes, innovates service models, deeply identifies customer needs, responds efficiently to customer requests, proactively increases communication frequency, and comprehensively enhances customer experience. These efforts help shape an outstanding corporate service brand and achieve long-term, mutually beneficial relationships with customers.

Responsible Supply Chain

Capchem upholds the core philosophy of "building a competitive supply chain and creating the optimal cost and service value for customers," integrating the Company's sustainable development strategy deeply into ESG management and practices across the supply chain. The Company aims to establish a responsible, resilient, green, and traceable supply chain, working closely with suppliers and their upstream partners to promote sustainability across the entire industry chain.

People-oriented

High-quality talents are the core elements to promote the continuous progress of enterprises. Capchem empowers every employee with the talent development concept of "Participate·Develop·Undertake·Share", and is committed to constructing a diversified, inclusive and energetic workplace environment, so as to move forward side by side with the employees and create a bright future together.

Community Contributions

Capchem remains firmly committed to giving back to society and closely integrates its corporate social responsibility philosophy into its overall development strategy. Focusing on key areas such as education, culture, and sports, the Company actively participates in and makes sustained investments in a wide range of public welfare and community development initiatives, leveraging its philanthropic efforts to support social well-being and promote harmonious, mutually beneficial growth between the Company and the communities it serves.

Social Overview

Innovation-driven

  • In 2025, R&D investment reached RMB 536.89 million.
  • Conducted 445 sessions of R&D and intellectual property training.
  • Obtained 95 newly authorized domestic patents and 28 newly approved domestic and overseas registered trademarks.

Product Quality

  • First-pass yield of finished products reached 99.88%, an increase of 0.38% from last year.
  • Introduced the SRM system for systematic supplier management, improving raw material qualification rates from 96.8% to 97.83%.
  • No major product quality incidents occurred.
  • Quality management training covered 13,650 participants, with a total of 44,173.03 training hours.

Chemical Safety

  • Implemented a reduction plan targeting SVHCs.
  • Completed PFAS identification across the Group's full product portfolio, actively advanced PFAS substitution, and continued to monitor developments related to PFAS proposals.

Occupational Health and Safety

  • Invested a total of RMB 59.69 million in occupational health and safety management in 2025.
  • 12 operating production bases obtained ISO 45001 certification, representing a coverage rate of 80%.
  • No work safety incidents of moderate or higher severity occurred, and no suspected or confirmed occupational disease cases were reported.
  • Conducted 714 safety drills and 956 safety training sessions, achieving 100% coverage of production employees, with a total of 115,727 training hours.

Customer Services

  • Overall customer satisfaction scores remained above 90 for several consecutive years.
  • Customer complaint resolution rate reached 100%.
  • No customer privacy breach incidents.

Responsible Supply Chain

  • 100% of core material suppliers have obtained ISO 9001 quality management system certification, and over 95% have signed the latest version of the CSR Agreement.
  • Provided 49 ESG training sessions to core material suppliers, covering 467 participants; 76 training sessions on basic knowledge of environmentally hazardous substances, covering 639 participants; and 92 quality training sessions, covering 863 participants, representing an increase of 564 participants compared with 2024.
  • Safeguarded labor rights and occupational health and safety through ad hoc supplier audits.
  • Conducted responsible mineral supply chain due diligence for lithium material suppliers and established a responsible minerals sourcing supply chain map.

People-oriented

  • Total number of employees: 4,465, including 792 new hires.
  • Local employees at Capchem Poland account for 90% of the workforce.
  • No incidents of child labor or forced labor violations occurred.
  • Average training hours per employee exceeded 47.52 hours.
  • 100% of employees accepted performance evaluations.
  • The Company invested a total of RMB 48.07 million to enhance employee well-being.
  • Employee satisfaction surveys covered 100% of full-time and part-time employees, with satisfaction rated at a good level.

Community Contributions

  • During the Reporting Period, Capchem invested a total of RMB 3.36 million to support public welfare initiatives.
  • As of 2025, Sanming Hexafluo has donated to the student aid fund for five consecutive years, with cumulative contributions reaching RMB 9.47 million.
Social Overview