Social Responsibility

The success of the company relies on the employees and the community. The group strives to bring value to them by promoting their growth and development. Ensuring the safety and health of employees and the entire production environment, providing continuous support for the advancement of employees' professional skills through fair and ongoing training opportunities. Actively participating in community and charitable activities, the group believes that ultimately, the group can progress together with employees and the community towards a more sustainable future.

Through rigorous procurement mechanisms and product certification systems, the group is committed to minimizing environmental and social risks in the supply chain, ultimately providing high-quality, stability, and reliable products to the global market. The group's goal is to add value to the group and its upstream and downstream customers. The group's actions are always based on the pursuit of research and development, productivity, and quality priority.

Employee Health and Safety

The group is committed to achieving excellence in occupational health and safety management in dynamic processes and continuously improving performance. This forms the basis for the continuous improvement of group facilities, products, and services. The group has formulated and adopted policies including "Safety Operating Regulations", "Safety Production Responsibility System", and "Safety and Health Policy" to provide all employees with a safe and healthy working environment and zero tolerance for unsafe behaviors or conditions. Following ISO 45001 guidelines, the group has ISO 45001-certified occupational health and safety management systems in its factories in China and Italy, aiming to provide employees with a continuous safe and healthy working environment and work system.

Occupational Health and Safety Measures

The group provides employees with a safe working environment and is committed to protecting them from potential health hazards and injuries. Employees must be familiar with the safety requirements of their workplaces, including wearing adequate personal protective equipment when necessary, and reporting unsafe behaviors, conditions, and safety risks. To enhance employee safety awareness, the group provides mandatory training and observation courses such as safety training, fire drills, and first aid certificate courses for employees to participate in. Management is responsible for promoting risk assessments and collaborating with employees to develop protective measures. As a safeguard, the group also provides industrial accident insurance for employees. The human resources department is responsible for monitoring the effectiveness of measures related to occupational health and safety in the enterprise. All employees of the group can raise any issues related to occupational health and safety through various channels from time to time.

Supply Chain Management

Procurement Operations Mechanism

Environmental and Social Risk Management

Promotion of More Environmentally Friendly Products and Services

To ensure the quality of raw materials, the group only collaborates with suppliers on the qualified supplier list. The process of selecting qualified suppliers, especially needle coke suppliers, is quite lengthy. The group first conducts internal testing of the chemical and physical properties of raw materials. After passing the test, the materials will be used to produce graphite electrodes, and then undergo qualified testing, at which time the chemical and physical properties of the graphite electrodes will be tested, and the performance of the graphite electrodes when installed and applied to customer furnaces will be evaluated. When the needle coke and binder pitch of the supplier pass all the tests and procedures mentioned above, they will be listed in the group's list of qualified suppliers. The group reviews the list of qualified suppliers annually, and factors considered when purchasing raw materials include the grade and quality of needle coke and binder pitch, the price of needle coke and binder pitch, their logistics arrangements, and the payment terms offered.

The group is committed to minimizing environmental and social risks in the supply chain, closely monitoring the business practices of suppliers or subcontractors, regularly reviewing the performance of each supplier against environmental and social criteria. And continuously assessing the environmental and social responsibility performance of suppliers, termination of contracts if suppliers refuse to comply with relevant environmental and social laws and regulations.

The group gives priority to appointing suppliers with established sound environmental management systems, such as suppliers with ISO 14000 certification. The group also continuously evaluates the environmental performance of suppliers, and if a supplier refuses to deal with situations that seriously damage the environment, the contract will be terminated.

Product Responsibility

Quality Certification

The group is a manufacturer of ultra-high power graphite electrodes and graphite anode materials for the global market. The group believes that product quality, stability, and reliability are crucial for maintaining customer loyalty and upholding the company's reputation. The group has formulated a product quality control policy to manage incoming material control, production steps, and finished product quality control. The quality management systems of the factories in China and Italy are ISO 9001 certified, managing all production steps, including accepting and rejecting semi-finished products. The group's quality control team is responsible for supervising the quality control of raw materials, finished products, and production processes. In addition, strict quality control systems and procedures are implemented, including the following:

• For raw material procurement, the group purchases raw materials from qualified suppliers. Incoming raw materials must undergo detailed physical inspection by random sampling before entering the warehouse or entering the group's production process. The group requires suppliers to issue quality certificates for all raw materials shipped to the group's production plants;

• For finished products, quality control of finished products ensures that outbound products meet customer requirements and industry guidelines. In addition to visual inspection, the group's finished products are continuously audited for characteristics such as density, resistivity, flexural strength, stiffness, and coefficient of thermal expansion;

• For production processes, the group has established and maintained a document-based quality management system certified to ISO 9001:2015. The group's production and process control include multi-point checks of process variables from the start to the end of the production process. The group's quality control personnel use various testing instruments to sample and test semi-finished products in key steps of the production process. The entire production process is closely monitored, performance data is appropriately recorded for traceability of any defects. When the group receives reports of product problems, it will check the performance data log to trace the origin of defective products. If necessary, defective products will be recalled. The group is committed to continuously providing products that meet customer specifications and improving customer satisfaction through effective application of this management system, retaining existing customers, and attracting new ones.