ESG initiatives| Owada Guangzhou deepened green development and safety governance in Owada Guangzhou Industrial Park, fully implementing the ESG Sustainable development strategy

Green development and safety governance is an important part of Huabao’s ESG development strategy. Through a series of innovative initiatives, Owada Flavours & Fragrances (Guangzhou) Co., Ltd. (hereinafter referred to as “Owada Guangzhou” or the “Company”), a subsidiary of Huabao Flavours & Fragrances Co., Ltd. (hereinafter referred to as “Huabao”), has deeply embedded the ESG sustainable development concept into the Company’s production, operation, and management activities, fully promoting green development and safety governance in Owada Guangzhou Industrial Park (hereinafter referred to as the “Park”).

Deepening green development to promote energy conservation, emission reduction, and quality & efficiency enhancement

In practicing the concept of green development, Owada Guangzhou vigorously promotes the green development action plan at the Park, implements the green and low-carbon concept, advances the construction of a green and ecological industrial park, and facilitates resource conservation with practical actions, continuously enhancing the core competitiveness of the Company and Park in green development.

1. Facility optimization and energy conservation

In 2024, the Company conducted a comprehensive review and optimization of the production facilities in Park by eliminating high-energy-consuming equipment such as large central air conditioning refrigeration units, and introducing new energy-efficient equipment with new energy-saving and high-efficiency permanent magnet synchronous variable frequency motors. These pieces of equipment not only had higher efficiency and power factors, but also demonstrated significant overall energy-saving effects, with at least a 20% energy saving compared to previous equipment. Meanwhile, the application of new environment-friendly refrigerants effectively reduced greenhouse gas emissions and environmental pollution.

2. Rainwater and sewage separation and drainage management

In the Park, we have implemented a rainwater and sewage separation system and obtained the Urban Sewage Discharge Permit into the Pipe Network. To further enhance the effectiveness of drainage management, the Company has optimized and upgraded the Park's rainwater and sewage pipe network, sorted out and maintained pumps, gates, valves, and other ancillary facilities, demolished old sewage pipelines, and constructed new rainwater and sewage wells. At the same time, the Company has established an environmental management system, conducting regular environmental monitoring and risk assessments to ensure compliance with green environmental standards in the Park.

3. Water and electricity management, energy conservation and emission reduction

The Company has updated the statistical analysis and investigation mechanism for water and electricity meters in Park, registering each meter with a unique number and strengthening inspection and analysis. Furthermore, the Company has uniformly upgraded and renovated corroded and leaking water pipes in the Park, achieving effective utilization of water resources. After treatment, water consumption in Park has decreased by 3,800 tons compared to the same period, representing 25% of reduction.

4. Green factory and green operations
In the Park, we are committed to building a green factory, practicing green operations, promoting a green supply chain, and providing green products. The Park has a greening area of 50%, with nearly 400 trees and flowering plants, providing a good working environment for employees. Additionally, the Park is equipped with sports facilities such as basketball court and badminton court, promoting the physical and mental health of employees.

Strengthening safety governance to safeguard high-quality development

In terms of safety governance, Owada Guangzhou always adheres to the guideline of “Safety First, Prevention Primary, and Comprehensive Governance”, promoting safe development actions in the Park and laying a solid foundation for safety.

1. Focusing on hidden danger investigation and treatment to eliminate accident hazards

Owada Guangzhou firmly establishes the concept that “hidden dangers are accidents” and strengthens source prevention and systematic governance. The Company organized multiple special safety hazard investigations and treatments in the Park this year, covering the electrical system, water system, fire protection system, internal and external security systems, and other aspects. All identified safety hazards have been rectified, effectively preventing and resolving safety risks.

2. Promoting prevention through “practice”: conducting emergency drills in the Park

To enhance employees’ fire safety awareness and emergency response capabilities, we organized fire safety knowledge promotion and practical drill activities themed around Fire Safety Month at Owada Guangzhou Industrial Park. Meanwhile, the Company also regularly organized special drills such as elevator entrapment emergency drills and fire accident special emergency drills, improving the overall safety emergency response capability at the Park.

Looking ahead, Owada Guangzhou will continue to firmly practice the concept of high-quality ESG sustainable development, proceed from the overall strategic perspective and start with foundational work, thus promoting the implementation of various ESG initiatives with a work style of being “strict, thorough, detailed, and practical”. The Company will continuously improve the level of green development and safety governance, contributing to the realization of high-quality development.