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Supply chain management

China BlueChemical continuously improves the supply chain management system, formulates the Supplier Management Measures, Supplier Management Implementation Rules, etc., and carries out the management mode of centralized management and hierarchical responsibility for suppliers. The Engineering and Procurement Department of the Company is responsible for the formulation of supply chain management system, and the Procurement and Sharing Center of the Company is responsible for the construction and maintenance of the supplier database, including the approval of supplier entry, annual assessment, and optimization management of the supplier database, etc. The stationing team of the Procurement and Sharing Center in each subsidiary is responsible for the recommendation of the suppliers, preliminary examination, and process assessment.

Adhering to the principles of fair operation, mutual trust and reliance, and win-win cooperation, we advocate the establishment of a business environment of fair competition, equality and mutual benefit, and the establishment of a reasonable evaluation and management mechanism and communication mechanism with various suppliers and partners. This strongly prevents illegal and illicit behaviors such as underhanded operation and commercial bribery, and promotes the sustainability of the supply chain.

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Product liabilities

The Company abides by laws and regulations such as the Quality Law, Trademark Law and Anti-unfair Competition Law of the PRC and each of the national standards for various types of products. The Administrative Measures for Quality Control, Administrative Measures for Marketing of Products, etc., have been formulated by the Company, and comprehensive and stringent quality control measures in relation to product quality and safety, advertisements and promotions, trademarks, labels, privacy and remedies were implemented.

Adhering to the “people-oriented, safety-first, law-abiding, foundation-consolidating, innovation-driven, winning-in-quality” policy and leveraging its quality control system, the Company promoted QC group activities, strengthened laboratory testing management, and initiated the “Quality Month” event to further cultivate a quality culture, enhance the quality awareness of all employees, and continuously improve the Company’s quality management standards. In 2024, the Company's urea and methanol product qualification rate was 100%, and the product excellence rate was 99.89% and 100%, respectively, which have reached the Company's product quality and efficiency annual targets. The Company did not have any quality incidents of level D or above, no major lawsuits and complaints arising from product quality and services, and no sold or shipped products that had to be recalled for safety and health reasons.

Anti-corruption

Integrity risk prevention and control is a critical component of the Company’s risk management. The Company has been adhering to a proactive approach, emphasizing prevention, and has been promoting construction of an integrity risk prevention mechanism. The company rigorously adhered to relevant laws and regulations, including the Criminal Law of the People's Republic of China and AntiMoney Laundering Law of the People's Republic of China. It established a bulletin board for anti-corruption education and publicity, issuing reminders on integrity during major holidays, urging all employees to strictly adhere to legal provisions and business ethics standards related to preventing bribery, extortion, fraud, and money laundering, thereby establishing a solid baseline for integrity in the workplace.