2024 CORPORATE SOCIALRESPONSIBILITY REPORT

Table of Contents 

04 About This Report 

06 Chairman's Message 

08 President's Message 10 About Guangdong Purete 12 Focus on Responsibilities

Integrity-oriented Operation, Excellent Governance

 16 Development History

 20 Anti-Corruption and Business Ethics

Technological Innovation, Superior Products 

24 Consolidate Scientific Research Foundation 

26 Pursue Superior Quality

Green Development & Safety, Intelligent Operation 

38 Eco-environment Protection 

39 Pursue Green Development

40 Occupational Safety and Health

Care for Employees, Cultivate Top Talents 

46 Safeguard Employees' Rights and Interests 

46 Focus on Talent Development 

48 Value Employee Care

56 Public Commitment and Future Outlook on Social Responsibility and Sustainable Development

59 Stakeholder Feedback

04.About This Report

This report serves as an authentic account of how Guangdong Purete Intelligent Equipment Co., Ltd. actively fulfills its economic, social and environmental responsibilities to achieve sustainable development. It also responds to key issues concerned by stakeholders, aiming to strengthen communication and connections with all stakeholders.

Time Scope

Mainly covering January 1 to December 31, 2024. Partial information is traced back and extended to maintain data continuity.

Entity Scope

The report takes Guangdong Purete Intelligent Equipment Co., Ltd. as the main body. Information and data cover all departments and wholly-owned subsidiaries of the Company. For simplicity, "Guangdong Purete", "the Company" and "we" are used in the text.

Release Cycle

Annual Report

Data Description

Data is sourced from the Company’s internal financial statements, operation records, statistical ledgers of various departments, etc. Information and data cover all departments and wholly-owned subsidiaries. Supply chain information is disclosed following the principles of materiality and relevance, focusing primarily on information closely related to the Company’s business and exerting significant environmental and social impacts.

Reliability Guarantee

The Report Compilation Committee under China National Forest Products Industry Association warrants that the report contains no false records, misleading statements or major omissions, and takes responsibility for the authenticity, accuracy and completeness of its contents.

Release Format

This report is issued in both electronic and printed versions. Readers may download it from the website of China National Forest Products Industry Association (www.cnfpia.org), the Research Institute of Wood Industry, Chinese Academy of Forestry (www.criwi.caf.ac.cn), and the Company’s official website (www.puretegroup.com).

Reference Index

This report references:

• Basic Framework for China Corporate Social Responsibility Reporting (CASS-CSR5.0) issued by Chinese Academy of Social Sciences;

• Group Standard T/CNFPIA 4001-2017 Guidelines for Compiling Social Responsibility Reports for Enterprises in China’s Forest Products Industry released by China National Forest Products Industry Association.

Innovate Coating Technology, Practice Social Responsibility:

Compose a New Chapter of Green and Sustainable Development with Exquisite Craftsmanship

When a base material receives precision coating on Purete intelligent production lines and transforms into decorative panels featuring functional aesthetics and environmental value, what we see is more than technological innovation. It represents our earnest practice of “harmonious coexistence between humanity and nature”. As carbon neutrality becomes a global consensus, Purete Intelligent Equipment’s mission has never been confined merely to machinery manufacturing. We firmly believe that genuine industrial civilization will never compromise efficiency for environmental beauty, and authentic craftsmanship achieves eternity through sustainability.

The ESG era has brought the intelligent equipment industry into an important development stage filled with both opportunities and challenges. With growing public environmental awareness and accelerating industrial upgrading, market demands for intelligent equipment are undergoing profound changes. Nowadays, customers not only focus on basic product functions, but also set stringent standards for equipment’s environmental performance and technological innovation. They expect the equipment to cut energy consumption and pollution, adopt cutting-edge technologies, and greatly improve production efficiency and product quality. Society expects enterprises to actively advance the green transformation of industries and facilitate sustainable industrial development while pursuing economic benefits.

We are deeply aware that fulfilling social responsibility is not an add-on for corporate development, but a vital driving force for sustainable growth. Therefore, the Company has deeply integrated the philosophy of social responsibility into its strategic planning, and consistently upholds the corporate vision: Innovate Coating Technology, Create a Better Life. By continuously increasing investment in R&D, innovating coating technologies, and improving the environmental performance and intelligence level of products, we deliver premium coating solutions for customers and generate substantial economic value.

Committed to integrating fine craftsmanship and sustainability through innovative coating technologies, the Company strives to drive the green transformation of the intelligent equipment sector. We expand production scale, optimize business layout, and introduce green manufacturing processes and equipment to reduce resource consumption and pollutant emissions during production, setting a benchmark of green manufacturing for the industry. We also actively develop and promote eco-friendly products. The green and low-carbon philosophy runs through the full lifecycle covering raw material selection, product design, production, utilization and recycling to enhance product sustainability. We guide the industry to advance toward environmental protection and high efficiency, contribute to industrial sustainable development, and rely on innovative coating technology to create pleasant spaces and a better life for the public.

We must take the initiative to reform for customers. We provide integrated overall coating solutions for surface treatment of diverse materials. Our coating production line equipment covers roller coating, curtain coating, spray coating, film pressing, mould pressing, flat pressing, laminating & wrapping, excimer and other series. Featuring environmental friendliness, energy conservation, intelligence and high efficiency, the equipment is widely applicable to surface coating and decorative lamination of metal, plastic, glass, cement and wood products. It is especially suitable for surface treatment of decorative products for residential and commercial spaces such as customized furniture, internal & external wall panels, flooring materials, doors, windows and suspended ceilings.

We must accelerate innovation in response to challenges. Amid global economic globalization and the highly developed information age, innovation stands as the core driving force behind the growth of Guangdong Purete. We prioritize innovation as our primary task and build distinctive competitiveness through technological breakthroughs. The Company owns two brands: Prite and Haulte. They deliver customized services to customers of different types and development stages, providing professional equipment manufacturing and technical services for coating and surface finishing to satisfy diverse surface process requirements.

We must demonstrate commitment to serve society. Over the past year, Guangdong Purete organized more than ten themed activities including health support, community services, low-carbon environmental advocacy, care for the elderly and children, and public welfare student aid. We actively participate in and contribute to infrastructure improvement and coordinated regional development. In overseas operations, we engage in local public welfare initiatives such as education development, equal employment and community building, striving to build a responsible and trustworthy brand image for Chinese enterprises.

Uphold Fine Craftsmanship, Pursue Sustainable Beauty. This is not only Purete’s conviction, but also our answer to the times. This report records Purete’s journey of fulfilling responsibilities, and carries the green commitment behind countless home furnishing products. From the artistic texture of Italian embossed decorative panels to zero-formaldehyde safety of school desks in Africa, Purete equipment interprets the true essence of “Refined Surface Technology” all over the world. We firmly believe: true craftsmanship never compromises the environment, and genuine innovation always moves forward hand in hand with responsibility.

Looking ahead to 2025, Purete will strive to achieve all established business targets. We will lead industrial transformation with smart low-carbon development, improve operational efficiency via sound governance, and boost social development through responsibility commitment. We will live up to the trust, support and expectations from all sectors of society, and forge ahead toward becoming a world-class intelligent equipment enterprise with industrial competitiveness and global brand influence.

Remarks by Zhou Hongsheng, President of the China Forest Products Industry Association

Shouldering Responsibility to Stay True to Original Aspirations, Honoring Mission through Commitment

2024 marks a pivotal year for delivering the goals and tasks set out in the 14th Five-Year Plan. It is the first year for mandatory ESG disclosure for A-share listed companies in China, as well as a foundational year for the forest products industry to build an ESG strategic management and practice system with industry characteristics. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we strive to improve the modern enterprise system with Chinese characteristics, steadily advance the sustainable development strategy, deepen ESG management in an all-round way, continuously lift ESG performance, and jointly draw an industrial blueprint for sustainable development.

The Third Plenary Session of the 20th CPC Central Committee proposed to “support and guide all types of enterprises to boost the efficiency of resource factor utilization and operational management, fulfill social responsibilities, and foster more world-class enterprises at a faster pace”. It sets the direction for corporate actions and provides core underpinnings for the practice of corporate social responsibility with Chinese features. Enterprises can effectively leverage the efficiency advantages of corporate organizations and align them with social governance objectives, serving as an endogenous driving force for upgrading national governance capacity and an important component of the national governance system. By actively fulfilling social responsibilities, upholding the philosophy of sustainable development, driving industrial upgrading through comprehensive innovation, fostering new quality productive forces, and enhancing the international competitiveness of products, enterprises demonstrate a responsible corporate image, play an exemplary role in social responsibility practice, vigorously advance the development of China’s social responsibility system, and ultimately contribute to Chinese modernization and high-quality development.

Corporate social responsibility has been thoroughly practiced across China and become an integral part of the socialist market economy with Chinese characteristics. The 16 key industrial enterprises participating in compiling this report stand firm in the new development stage, fully, accurately and comprehensively apply the new development philosophy. Their social responsibility practices feature prominent themes, distinctive highlights and diversified characteristics. Committed to better fulfilling social responsibility while pursuing economic benefits, these enterprises fully demonstrate outstanding contributions made by forest product enterprises in the new era, embody the overall awareness and sense of responsibility of industrial players, and actively support sustainable and high-quality social development.

Changes in the global economic landscape raise higher requirements for enterprises to fulfill social responsibilities, while opening up broader channels and more diverse approaches. Fulfilling social responsibility has become a vital strategic measure to adapt to the new normal of economic development and a compulsory task for enterprises to lift core competitiveness. It is my hope that the industry will accelerate green, low-carbon and high-quality development, facilitate in-depth integration of traditional strengths and modern vision, keep abreast of ESG and sustainable development trends, and further advance industrial social responsibility work. First, properly handle three relationships: the relationship between corporate growth and social responsibility, the relationship between social responsibility and ESG, and the relationship between social responsibility and sustainable development, so as to fully embed social responsibility management and ESG concepts across the industry. Second, strengthen four integrations: integrate social responsibility initiatives with promoting corporate reform and development, boosting corporate management innovation, running enterprises in accordance with the law, and long-term corporate planning, so as to continuously enrich the social responsibility system with unique industrial features. Third, focus on five priorities: innovative practice, coordinated operation, green development, open development, and win-win collaboration, so as to build an open ecosystem for industrial social responsibility.

Standing at a new starting point, we will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, anchor our ESG mission and objectives, pursue strategic expansion, rigorously cut carbon emissions, create new value drivers, and optimize operational efficiency. We will drive green transformation via technological innovation, shape corporate value chains through a responsibility ecosystem, set industry benchmarks with exemplary governance, strive to build influential, competitive and responsible enterprises, and work hand in hand to create a promising future for sustainable industrial development.

About Guangdong Purete Intelligent Equipment Co., Ltd.

Guangdong Purete Intelligent Equipment Co., Ltd. originated from Foshan Shunde Purete Machinery Manufacturing Co., Ltd., founded in 2008. After completing shareholding reform in 2021, the Company was renamed and upgraded to Purete and listed on the NEEQ in September 2022 with stock code 873795.NQ.

Purete Co., Ltd. is a manufacturer and service provider of automated assembly line equipment for coating and surface finishing. As an innovative high-tech enterprise specializing in the R&D, manufacturing, sales and after-sales service of automated and intelligent coating production lines, we deliver integrated one-stop coating solutions for surface treatment of diverse materials. Our production line portfolio covers roller coating, curtain coating, spray coating, film pressing, flat laminating, wrapping, matte soft-touch finishing, flat pressing, digital printing and other series, widely adopted for surface coating and lamination of metal, plastic, glass, cement, wood and other materials.

The Company owns two core brands: PURETE and HAUTE. They deliver customized services for customers of various types and development stages, satisfy diverse surface processing requirements, and provide professional equipment manufacturing and technical services for coating and surface finishing.

Headquartered in Longjiang Town, Shunde District, Foshan City, Guangdong Province, the Company wholly owns Hubei Purete Intelligent Equipment Co., Ltd., with operational bases in Foshan, Guangdong and Hubei. It is a leading enterprise in China’s panel coating equipment sector. The Company has been awarded numerous honors including Foshan Hidden Champion in Manufacturing Industry, Foshan Leading Enterprise in Manufacturing Segments, Customs AEO Advanced Certified Enterprise, Enterprise within Guangdong Digital Transformation Industrial Ecosystem Resource Pool for Manufacturing, Guangdong Specialized, Refined, Differential & Innovative Enterprise, Guangdong Expert Workstation for Science and Technology, National Intellectual Property Advantageous Enterprise, and Guangdong Green Factory. We have participated in drafting multiple national and industrial standards, enjoying high reputation and influence within the intelligent coating equipment industry.

Purete Co., Ltd. is committed to supplying integrated coating solutions and efficient, reliable intelligent equipment to help customers realize digital transformation and lift global competitiveness, advancing high-quality industrial development. Our products are exported to more than 80 countries worldwide. Empowering the manufacturing sector with cutting-edge technologies, Purete prioritizes ESG (Environmental, Social and Governance) practices to build a sustainable value chain. Armed with technological innovation, customer-centric value and ESG responsibility as our foundation, Purete is reshaping the intelligent manufacturing ecosystem. Looking ahead, the Company will accelerate deployment in AI and carbon neutrality sectors, striving to become a global leader in intelligent equipment. We support green prosperity for customers and society, collaborate with upstream and downstream partners to innovate coating technologies, and jointly create a better life for all!

Sustainable Innovation

In 2024, the Company successfully developed and launched the new technology “Key Technology and Equipment for Simultaneous Coating & Embossing Simulation” and its new product — “Simultaneous Coating & Embossing Simulation Production Line”, filling the domestic gap in intelligent production of high-fidelity decorative panels. Appraised and certified by the expert committee organized by China National Forest Products Industry Association, the technology reaches the international advanced level.

This production line delivers breakthrough performance: its surface abrasion resistance exceeds industrial standards, and production efficiency is increased by 20%. Meanwhile, equipment integration technology helps cut capital expenditure on machinery, boost productivity, streamline production workflows and expand profit margins for finished products. For texture presentation, it adopts advanced synchronous pattern registration technology, whose performance far surpasses conventional embossing technology.

Sustainable Exploration

Water-based coatings are used to replace solvent-borne coatings, cutting VOC emissions by 30%. Process wastewater is 100% recycled after treatment. Dust is centrally treated via an on-line dust removal system with efficiency ≥95%, and the classified recycling rate of solid waste reaches ≥90%. These measures effectively drive the company’s green transition. In 2024, the Company was awarded certifications including Guangdong Green Factory, Guangdong Intelligent Manufacturing Ecological Partner and Green Manufacturing Demonstration Project.

Sustainable Future

Actively responding to China’s “Dual Carbon” strategy, we adopt low-VOC coatings such as water-based paint and UV paint, which comply with GB/T 35602-2017 Green Product Assessment — Coatings. This drastically cuts harmful gas emissions and fuels the green transformation of the industry. By deploying eco-friendly production technologies, we fulfill environmental responsibilities across coating application, wastewater treatment, dust control and solid waste management, delivering remarkable environmental benefits.

This production line achieves breakthrough performance: its surface abrasion resistance exceeds industrial standards, lifting production efficiency by 20%. Furthermore, equipment integration technology lowers upfront capital investment, optimizes productivity, streamlines manufacturing workflows and expands profit margins. Equipped with advanced synchronous pattern registration technology for texture reproduction, it outperforms ordinary embossing technology by a large margin.

Technological innovation brings the initial investment of the production line down to below RMB 10 million (compared with over RMB 15 million for traditional processes), reducing unit costs by RMB 5 per square meter. It enables enterprises at home and abroad (including Shandong Senhua, Pakistan ZRK Industries, etc.) to break through cost barriers and rapidly enter the high-end customized market. It facilitates technological upgrading for small and medium-sized enterprises, indirectly drives employment along the industrial chain, and demonstrates the strategic significance and social value of corporate social responsibility initiatives.

Roller Coating, Spraying, Embossing & Laminating – All-in-One Solution

“We have to complicate our own work to make things simpler for customers.” This represents Purete’s original aspiration in developing intelligent equipment, and also mirrors the development of the wood-based panel industry.

Through continuous innovation in surface finishing technologies, wood-based panels are upgraded from commodity-grade products into high value-added goods, satisfying diversified demands from downstream customized furniture and interior decoration sectors.

Centered on three major finishing technologies: paper-based lamination, film lamination and coating, Guangdong Purete will keep focusing on industry pain points, explore optimized process solutions, develop more types of intelligent coating and finishing production line equipment, and expand professional teams, so as to simplify application for downstream customers. This dialectic between complexity and simplicity embodies our founding commitment to specialized surface coating and finishing equipment.