To balance economic activity and ecological environments, the Group transformed waste into resources that entered new material cycles through collaborations with industry, government, and academic institutes, thereby creating new materials and inputs. We incorporate green design concepts and improved processes to recycle and reduce organic solvents, exhaust emissions, and metals while working with suppliers to assess feasibility of recycling measures for hazardous substances. We also participate in industry-academia collaborations to test whether replacing wastewater treatment materials can enhance pollutant removal rates and energy-saving performance. We use sustainable raw materials, reduce material consumption, and enhance product yields to lower production costs and create symbiotic environments for enterprises and resources. We implement waste classification, waste recycling, and packaging material reuse measures to reduce waste while continuing to implement improvements using the PDCA cycle and working to achieve sustainable management. The Group did not incur any violations of environmental laws associated with waste in 2023.

Our production processes adhere to regulations and waste from all process stages are classified according to their characteristics. Waste is managed and stored according to procedural manuals before treatment by legally qualified vendors. We continue to seek out opportunities related to waste reduction and waste reuse in our manufacturing processes by working with new collaborators to develop waste recycling and reuse technologies that enhance recycling rates and reduce volumes of non-recycled (incinerated, stabilized, and landfilled) waste. We hope to continue reducing the proportions of non-recycled waste and increasing the proportions of recycled waste. In total, our generated waste volumes declined by 23% compared with the previous year.

The waste recycling intensity of Lextar’s Zhunan Factory was reduced by 5.4% compared with 2022. Recycling volumes of hazardous waste was effectively increased as factory organic waste liquids was converted to alternative fuel for co-generation power plants. Additionally, we also introduced various recycling projects to reduce usage of non-recyclable waste, fully utilizing internal material reuse cycles and external cross-company reuse cycles, and worked with cross-industry partners to recycle materials. Our recycling rate rose from 50% in 2022 to 67%.

All Group factories have established “Waste Management Procedures” to ensure that waste generated during factory operations are treated legally, appropriately, and safely to minimize environmental impacts. We have also established “Supplier/Contractor EHS Appraisal Regulations” which stipulate that we only collaborate with qualified waste disposal companies which have passed our checks. Ennostar regularly conducts supplier audits to ensure that collaborating suppliers dispose of waste in accordance with contracts and regulations.