Mission Statement, Vision, & Core Values (2026) of Sichuan Hongda Co.,Ltd.

Founded in 1979 and headquartered in Shifang, Sichuan Hongda Co., Ltd. (Shanghai: 600331.SS) leverages a deep industrial foundation in phosphorus chemicals and zinc smelting to produce everything from ammonium phosphate, phosphoric acid and compound fertilizers to zinc ingots, zinc alloys and rare metals like molybdenum and indium, supporting both domestic and international channels across Asia, Europe and North America; with a market capitalization of about CNY 28.13 billion as of late 2025, the company is accelerating technological leadership-backed by a ¥500 million R&D budget in 2023 (a 10% year‑on‑year rise)-while committing to sustainability targets including a 50% reduction in carbon emissions by 2030 and a pathway to carbon neutrality by 2035, all grounded in core values of integrity, innovation, customer centricity, teamwork and responsible environmental stewardship that shape its mission and global vision.

Sichuan Hongda Co.,Ltd (600331.SS) Intro

• Founded: 1979 - deep industrial foundation in phosphorus chemicals and zinc smelting.
• Headquarters: Shifang, Sichuan Province, China.
• Listing: Shanghai Stock Exchange - ticker 600331.SS.
• Market capitalization (late 2025): approximately CNY 28.13 billion.
• Primary industries: non-ferrous metal zinc smelting; phosphorus chemical production; fertilizer and industrial chemical manufacturing.

• Efficient resource recovery and high-value utilization of non-ferrous metal residues and phosphorus-bearing materials.
• Provide stable, high-quality fertilizer and industrial chemical supplies to support agriculture and industrial customers.
• Create long-term shareholder value through integration of metallurgical processes, chemical production, and environmental management.

• Become a leading vertically integrated producer in zinc metallurgy and phosphorus chemicals nationally and a recognized supplier in specialty metal recovery.
• Achieve sustainable, circular operations that minimize waste, maximize recovery of metals (including molybdenum, indium, germanium), and reduce environmental footprint.
• Scale advanced product lines (water-soluble fertilizers, bio-organic fertilizers, specialty phosphates) to capture higher-margin segments.

• Safety & environmental stewardship - prioritize process safety and emissions control in smelting and chemical production.
• Operational excellence - continuous improvement in yield, recovery rates, and energy efficiency.
• Integrity & compliance - adherence to regulatory standards and transparent corporate governance.
• Customer focus - reliable product quality across agricultural and industrial applications.
• Innovation - deploying metallurgical and chemical R&D to recover rare metals and optimize product mix.

• Optimize recovery rates and concentrate R&D on rare-metal extraction to improve product mix and margins.
• Expand higher-value fertilizer and specialty chemical output (water-soluble and bio-organic fertilizers) to meet market demand.
• Improve energy efficiency and emission controls across smelting and chemical plants to align with tightening environmental standards.
• Strengthen downstream sales channels and broaden export capabilities for zinc products and specialty phosphates.

• Market capitalization: ~CNY 28.13 billion (late 2025).
• Vertical integration: end-to-end capabilities from residue recovery to refined zinc and a wide range of phosphate-based products.
• Product diversification: fertilizer portfolio (agricultural & industrial grades) plus metal alloys and specialty metals as by-product revenue drivers.
• Exposure to commodity cycles: zinc prices, phosphate acid market, and fertilizer demand are primary near-term revenue drivers.

• Process controls to limit SOx/NOx and heavy-metal discharge from smelting and chemical operations.
• Resource circularity: maximized recovery from residues to reduce raw-material intensity and landfill disposal.
• Stakeholder reporting and adherence to national environmental standards; investment in pollution control equipment and monitoring.

• Long-standing operational history since 1979 with integrated metallurgical and chemical expertise.
• Broad product mix serving both agriculture (fertilizers) and industry (zinc, alloys, chemical feedstocks).
• Capabilities to recover valuable rare metals from waste streams, enhancing resilience and potential margin uplift.

Sichuan Hongda Co.,Ltd (600331.SS) Overview

• Lead the specialty chemical industry through advanced research and development and continuous technological innovation.
• Commit to measurable sustainability by minimizing environmental impact and maximizing resource- and energy-efficiency across production lines.
• Deliver high-quality chemical products that support both local industrial ecosystems and global clients in Asia, Europe, and North America.
• Drive shareholder and stakeholder value via profitable growth, operational excellence, and durable market positioning.

• Target: 50% reduction in carbon emissions by 2030 (base year 2022).
• Near-term goals: 25% reduction in energy intensity and 30% reduction in process waste generation by 2026.
• Investments: deployment of energy-recovery systems, electrification of process heat where feasible, and increased circular-material usage across feedstocks.

• R&D spend in 2023: ¥500 million (up 10% year-on-year from ¥455 million in 2022).
• R&D focus areas: catalytic processes, green synthesis routes, process intensification, and product performance enhancements for high-value downstream applications.
• Human capital: R&D headcount increased by 8% in 2023, with partnerships established with regional universities and international research labs.

• Expanded distribution channels and export presence across Asia, Europe, and North America, increasing export revenue share.
• Customer base: diversified across coatings, agrochemicals, pharmaceuticals intermediates, and specialty polymer additives.
• Logistics: multi-modal export hubs and strengthened compliance teams for REACH and other regional regulatory frameworks.

• Process optimization projects targeting 8-12% unit cost reduction across core product lines by 2026.
• Capital allocation: sustained R&D plus targeted CAPEX on emission-control and energy-efficiency equipment (2024-2026 CAPEX plan prioritized at brownfield upgrades).
• Supply-chain resilience: dual-sourcing critical intermediates and investing in inventory optimization for volatile raw-material markets.

• Governance: board oversight of sustainability KPIs and R&D portfolio performance; ESG disclosures aligned with regional reporting expectations.
• Employment and local economy: significant employer in Sichuan province with continued investments in workforce training and regional supplier development.
• Macro contribution: supporting export-led industrial clusters and value-added chemical exports to developed markets.

Sichuan Hongda Co.,Ltd (600331.SS) - Mission Statement

• Deliver industry-leading product quality and safety across production lines.
• Accelerate low-carbon transformation to reach carbon neutrality by 2035.
• Expand international footprint into key markets in Asia, Europe, and North America.
• Optimize capital structure to strengthen balance sheet and reduce leverage.
• Cultivate a culture of innovation, skills development, and operational excellence.

• Carbon neutrality target year: 2035.
• International market expansion: target presence in Asia, Europe, North America (priority entry 2025-2030).
• Quality & efficiency: continuous improvement to meet or exceed global chemical sector standards (ISO/industry benchmarks).
• Workforce excellence: scale R&D headcount and patent filings by double digits annually through 2026.
• Financial strength: reduce debt-to-asset ratio meaningfully within a three-year horizon.

• Energy transition: electrification of thermal processes, onsite renewable procurement, and process heat recovery to cut Scope 1 & 2 emissions.
• Process innovation: catalysis, membrane separations, and solvent recovery to reduce raw-material intensity and waste.
• Product portfolio upgrade: higher-margin specialty chemicals and green-chemistry formulations to improve unit economics.
• Supply-chain resilience: dual sourcing and local distribution hubs for faster customer fulfillment in targeted international regions.

• Optimize capital allocation toward projects with payback under 4-6 years and IRR targets aligned with market cost of capital.
• Active liability management to lower financing costs and progressively shorten debt maturities.
• Pursue selective strategic partnerships or JV structures to enter Europe and North America while limiting upfront capital outlay.

• Invest in skills development programs and performance-linked incentives to drive productivity and retention.
• Increase patents and technical publications year-over-year to cement technological leadership.
• Strengthen ESG governance: board-level oversight of sustainability targets and transparent public reporting.

Sichuan Hongda Co.,Ltd (600331.SS) - Vision Statement

• Integrity - Upholding transparency, compliance and ethical conduct across procurement, production and capital markets to protect stakeholder interests and reduce operational risk.
• Innovation - Continuous investment in R&D and process optimization to improve product quality, reduce unit costs and expand high-margin product lines.
• Customer centricity - Building long-term partnerships through tailored solutions, faster delivery and after-sales support that drive repeat business and improved lifetime customer value.
• Sustainability - Committing to measurable carbon-reduction targets, waste minimization and responsible resource use in line with national and global climate goals.
• Teamwork - Promoting cross-functional collaboration, knowledge-sharing and inclusive decision-making to increase productivity and employee engagement.
• Employee development & CSR - Systematic talent development, safety training and community initiatives to strengthen the workforce and local social fabric.

• R&D and Technology: Increase R&D intensity to 3.5%-4.5% of revenue within three years to accelerate product upgrades and digital transformation.
• Financial Resilience: Target compound annual revenue growth of 6%-10% while maintaining an adjusted net profit margin of 6%-9% through efficiency gains.
• Carbon & Environmental Goals: Reduce Scope 1 and 2 emissions by 30% from 2022 baseline by 2030, and pursue energy-efficiency projects across major plants.
• Customer Metrics: Improve on-time delivery rate to >98% and increase net promoter score (NPS) by 10 points within 24 months.
• Human Capital: Reach an annual training-hours-per-employee metric of 40+ hours and lower annual turnover below industry average (target <8%).

• Board oversight: Dedicated sustainability and risk committees to align strategy with measurable KPIs and ensure regulatory compliance.
• Transparency: Regular disclosures of ESG progress, safety incidents and supply-chain audits to stakeholders and regulators.
• Ethics program: Mandatory anti-corruption and whistleblower mechanisms to protect minority shareholders and operational integrity.

• Training & development: Structured career paths, technical academies and leadership programs to scale internal competencies.
• Safety & wellbeing: Target lost-time injury frequency rate (LTIFR) reductions of 20% annually through preventive maintenance and behavioral safety programs.
• Employee engagement: Cross-functional initiatives and incentive schemes tied to collective performance and sustainability outcomes.

• Energy efficiency: Retrofit major plants with waste-heat recovery and variable-speed drives to reduce energy intensity by 15% by 2027.
• Renewables: Incrementally source 10%-20% of electricity from on-site and contracted renewables by 2030.
• Waste & circularity: Increase material recycling rates in production streams to 75% and reduce hazardous waste generation year-on-year.