Sustainability

Product Quality
Zangge Mining consistently adheres to the quality policy of “customer focus and quality assurance; full participation and continuous improvement; creating value and contributing to society”. By establishing a comprehensive quality management system and strengthening quality risk control measures, the company continuously improves the management of product quality and safety across all processes, aiming to achieve industry-leading standards. At the same time, Zangge Mining resolutely safeguards customer rights and interests and builds a robust customer service management system, striving to continuously enhance service quality.
The Company continues to improve its quality management policy system, has established a quality management system covering the full production process, and continuously optimizes management procedures and enhances quality management effectiveness in operational practice. In 2025, the ISO 9001 quality management system certification coverage of its subsidiary production enterprises, Zangge Potash Fertilizer and Zangge Lithium, reached 100%. At the same time, the Company continued to optimize the operation of its quality management system. Through measures such as internal audits, process control, enhancement of testing capabilities, and quality training, the Company further strengthened its quality control capabilities and steadily improved its product quality management.
Technological Innovation
Key R&D Achievements in 2025

Zangge Potash Fertilizer:

It obtained authorization for three utility model patents, including “A Suspended Foam Collection Device Applied to Thickeners,” and had one utility model patent application accepted, namely “A Ball Mill with Improved Feeding Convenience.”

The “Hot-Melt Potash Process and Equipment Optimization Project” received the Qinghai Provincial Scientific and Technological Achievement Certificate and was recognized as reaching the “domestically advanced” level.

Zangge Lithium:

The “Research and Application of Key Technologies for One-Step Preparation of Battery-Grade Lithium Carbonate from Ultra-Low-Concentration Lithium-Containing Brine” won the Second Prize of the Qinghai Provincial Science and Technology Progress Award.

The “Research and Industrialization of Technology for Continuous Production of Battery-Grade Lithium Carbonate from Low-Grade Salt Lake Brine with a High Mg/Li Ratio” won the Third Prize of the Anhui Provincial Science and Technology Progress Award.

It obtained authorization for one new invention patent, “A System and Method for Controlling Impurities in Lithium-Containing Solutions During Salt Lake Lithium Extraction.”

It also obtained authorization for three new utility model patents, including “A Continuous Magnetic Removal System for Lithium Carbonate Slurry Based on Magnetic Fields Generated by Electromagnetic Induction.”

In addition, it completed the registration of six monographs and the submission of four research papers.

Innovation Management

In 2025, Zangge Mining continued to improve its R&D and innovation system. The Company further optimized its three-tier R&D management structure comprising the President, the Chief Engineer, and the dedicated technical R&D department. Under this structure, the dedicated technical R&D department is responsible for overall coordination and management, while relevant departments participate collaboratively. Major R&D matters are subject to tiered decision-making and management, ensuring the orderly advancement of R&D work. The Company also formulated management documents such as the Management System for the Technology R&D Department and the Intellectual Property Management System. Supported by performance assessment and reward measures for R&D personnel and a special incentive mechanism for scientific and technological innovation, the Company continued to standardize full-process management of technology R&D.

At the same time, the Company further strengthened intellectual property compliance management. In July 2025, Zangge Potash Fertilizer successfully passed certification under the updated national standard Requirements for Enterprise Intellectual Property Compliance Management Systems (GB/T 29490-2023) and officially obtained the intellectual property compliance management system certification. As of the end of the reporting period, intellectual property compliance management system certification covered 100% of the Company’s subsidiary production enterprises. The Company held a total of 31 patents, and recorded zero incidents of intellectual property infringement or infringement claims against the Company.

In addition, the Company actively participated in the formulation of industry standards and technical exchanges. Two group standards led and drafted by Zangge Lithium, the Guidelines for Patent Navigation in the Salt Lake Industry and the Specification for Patent Value Assessment in the Salt Lake Industry, were officially released and implemented. In 2025, the Company participated in the formulation of one national standard and two local standards, as well as the revision of two national standards. It also shared its technical achievements at multiple industry conferences, continuing to promote coordinated development across the industry.

Supply Chain Management
Zangge Mining is committed to responsible procurement, fostering a collaborative, transparent, and fair partnership environment. The company continuously optimizes supplier management to provide a high-quality supply chain that supports business growth. Through its influence in the value chain, Zangge Mining communicates sustainability requirements to partners, promoting positive environmental and social performance.
Supplier Management Process Supplier Due Diligence Process
Admission
Dedicated personnel conduct comprehensive assessments using the Supplier Evaluation Form, considering environmental compliance, product quality, and human rights risks. Suppliers are required to provide environmental credentials or undergo on-site inspections.
Classification
Suppliers are categorized based on product type and certifications such as ISO 9001.
Monitoring and Evaluation
A qualified supplier list is maintained, incorporating environmental performance as a bonus in evaluations. Annual quality surveys ensure suppliers meet standards. Supplier information is updated in the SAP digital management platform.
Exit
Suppliers failing to meet quality, environmental, or social requirements receive improvement suggestions. Persistent non-compliance or legal violations may result in termination of cooperation.
System Integration
Due diligence is embedded in ESG policies and management systems to ensure supplier compliance with sustainability requirements.
Risk Identification and Assessment
Regularly identify and assess environmental and social risks in supplier operations, including human rights, labor conditions, environmental protection, and anti-corruption. Suppliers must integrate risk management and maintain transparency.
Prevention and Mitigation
Suppliers implement measures to prevent or reduce identified negative impacts, supported by the company through training, technical assistance, and contractual guarantees.
Tracking and Monitoring
Establish regular review and monitoring to ensure suppliers implement ESG standards effectively. Suppliers report ESG improvements and initiatives
Remediation
The company may require corrective actions and provide support. Severe violations may result in termination of the partnership.
Responsible Procurement
In 2025, the Company continued to improve its responsible procurement management system. It embedded ESG requirements into supply chain management processes and the Supplier Code of Conduct, and conducted regular follow-up reviews of suppliers through both online and offline channels to verify their operating conditions. For suppliers found to have ESG-related violations or non-compliant conduct, the Company promptly took measures such as rectification, accountability, or termination of cooperation. At the contract signing stage, the Company included ESG requirements as contractual appendices and required suppliers to sign them accordingly, thereby guiding and supervising suppliers to observe social and ethical standards as well as national laws and regulations, respect fundamental human rights, treat employees responsibly, and practice environmental protection. At the same time, the Company incorporated ESG-related qualifications, including EcoVadis ratings, Sedex/SMETA audits, SA8000 certification, RMAP responsible minerals audits, and ISO 14064/14067 greenhouse gas verification, into the supplier access evaluation indicator system for materials and equipment suppliers as well as service suppliers through the Supplier Access Scoring Form. Suppliers with relevant qualifications are awarded additional points, encouraging them to continuously improve their sustainability management capabilities. During the reporting period, 100% of suppliers received communication on ESG requirements, 100% of suppliers signed integrity agreements, and the local procurement rate reached 100%. In addition, in 2025, the Company jointly launched the Supply Chain ESG Management Initiative (SCSI) with several enterprises. Focusing on environmental protection, social responsibility, and effective governance, the initiative promotes collaborative governance and shared improvement across the supply chain, further strengthening consensus on ESG principles and their practical implementation throughout the industrial chain.


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Reporting Hotline:+86-028-89992276

Reporting Email:jc@email.zanggekuangye.com

Mailing Address:Audit and Supervision Office, CAG Mining Co., Ltd., 19th Floor, Building 2, No. 1199 North Section of Tianfu Avenue, Chengdu High-tech Zone, China (Sichuan) Pilot Free Trade Zone, 610041

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