In 2019, Jiangsu Tailida New Materials Co., Ltd. carried out extensive technological upgrades to its environmental protection facilities, significantly improving the efficiency of waste gas treatment and ensuring that wastewater and waste gas emissions meet regulatory standards. At the same time, the company achieved corresponding economic benefits, realizing a win-win situation for both environmental protection and economic development.

　　(1) Basic Information about the Company

　　1. Major Environmental Protection Technology Upgrades in 2019

　　1. We conducted a non-hazardous waste identification study on sludge and CMC stock solution. The identification was completed in March 2019, and we obtained the identification report, which has been filed with the Environmental Protection Bureau. We have also properly carried out the online declaration of hazardous waste and, in November 2019, transferred 9.54 tons of distillation residue to Jiuzhou for treatment. However, according to inspections by the Environmental Protection Bureau and the special rectification campaign targeting hazardous waste—given the requirement that hazardous waste must be stored for no more than one year—we need to promptly transfer and dispose of the remaining hazardous waste in our inventory.

　　2. After being identified, the sludge was classified as general solid waste. A contract was signed with Green Energy, and 40 tons of sludge were sent for disposal. This has alleviated the pressure on the plant’s inventory and helped avoid potential risks during environmental inspections.

　　3. In accordance with the requirements of Document No. 15 issued by the General Office of the Provincial Government, the park’s environmental protection authorities have put forward numerous renovation requirements for enterprises. First, regarding wastewater treatment: each enterprise now has its own dedicated pipeline. We have already completed the commissioning and acceptance testing, and it is expected to be officially operational starting in 2020. Second, concerning exhaust gas treatment: we have collaborated with the Provincial Institute of Environmental Science to upgrade and renovate the plant’s exhaust gas systems, and have prepared a detailed report on the exhaust gas rectification measures. Based on the requirements proposed by the Provincial Institute of Environmental Science, we have carried out the necessary rectifications. Specifically: For the CMC workshop, we’ve added a fan to the tail gas absorption system, enhanced gas recovery, and installed a 30-meter-high exhaust stack to centrally treat and discharge the collected exhaust gases. For the sodium sarcosinate workshop, we’ve replaced the previously phased-out box-type vacuum pumps with tank-type vacuum pumps. The two separate absorption towers have been connected in series to form a two-stage treatment process, after which the treated gases are discharged through a single exhaust stack. As for the wastewater treatment plant, the exhaust gases from the collection ponds and biochemical ponds have been covered and then collected into absorption towers for treatment before being discharged. Third, as required by the park, we engaged a third-party agency—Guangzhou Zhang Bureau—to conduct independent assessments of the enterprises according to Document No. 15, prepare a comprehensive report, and burn the report onto a CD, which was then submitted to the park.

　　4. At the end of May, Nantong conducted a comprehensive inspection, during which environmental protection authorities identified a total of 7 items requiring rectification. We will prioritize ensuring that these rectifications are completed promptly.

　　5. In September, we installed online VOCs monitoring equipment in compliance with the mandatory requirements of the Environmental Protection Bureau. At the time, since our waste gas consisted of ethanol, the online monitoring instrument measured total non-methane hydrocarbons. We argued with the government’s environmental protection authorities about whether it was really necessary to install online VOCs monitoring. However, in the end, the government mandated that we must install such equipment; otherwise, we would not be able to continue operating.

　　6. In October, we completed the new emergency response plan and risk assessment report and filed them with the Rugao Environmental Protection Bureau.

　　7. In 2019, the park established a smart management platform. This smart platform plays a crucial role in overseeing and regulating enterprises within the park. According to regulatory requirements, enterprises are mandated to connect all their data—including emissions of waste gas, wastewater, solid waste, production equipment, pollution control measures, online monitoring data, combustible gas alarms, and current monitoring—into the park’s smart platform. We have invested heavily in this initiative, and the integration process has now been fully completed.

　　8. In November, the Rugao Environmental Protection Bureau conducted oversight of emergency weather control measures, requiring enterprises to install current monitoring systems for their production equipment and pollution-control facilities. The purpose of this oversight is to ensure that we fully comply with the requirements of the emergency weather control measures when they are in effect.

　　9. In December, reapply for the national-version discharge permit.

　　10. The company now has online monitoring equipment installed for wastewater, exhaust gases, and rainwater, and all of these devices are covered by third-party maintenance contracts to ensure their proper operation.

　　II. Main Production Status of the Company (Products Produced, Production Volume, and Treatment of Three Wastes)

　　(2) Company’s Environmental Management Status

　　1. Environmental Management Organization Structure

　　II. Environmental Management Goals and Measures

　　III. Status of Environmental System Certification

　　4. Status of Training and Education Related to Environmental Protection

　　V. Establishment of an Environmental Protection Management System

　　(1) Establishment of operating procedures for environmental protection facilities

　　(2) Routine inspection of environmental protection facilities

　　(3) Daily Management of Wastewater Treatment

　　(3) The occurrence of significant environmental issues at the company

　　The company places great importance on environmental protection efforts, diligently implementing and enforcing relevant environmental laws and regulations. It has established comprehensive environmental management systems and standardized operating procedures, strengthened inspections and maintenance of wastewater and exhaust gas treatment facilities, assigned specific environmental protection responsibilities to individual employees, and enhanced employees’ environmental awareness. To date, the company has not experienced any major environmental pollution incidents nor been involved in any environmental disputes.

　　(4) Company’s Compliance with Environmental Protection Laws and Regulations

　　1. Emissions of pollutants meet the standards.

　　Discharge standards and compliance status for wastewater, exhaust gas, and solid waste.

　　II. Implementation of Environmental Emergency Events and Contingency Plans

　　To prevent various environmental accidents from occurring and strive to minimize the losses caused by environmental pollution incidents, we aim to nip environmental pollution accidents in the bud. To promote safe production, protect the physical health of employees, and ensure the company’s safe and stable operation, we are continuously improving our emergency management systems, ensuring that safe production and accident rescue efforts proceed in an orderly manner. To this end, the company has developed an emergency plan for safe production and environmental protection, established a leading group for accident emergency rescue, and formulated emergency response procedures and measures for sudden environmental incidents, enabling us to take preventive measures before incidents occur. To enhance our skills in preventing and handling sudden accidents and strengthen our practical capabilities, the company organizes annual emergency drills for hazardous chemical safety incidents. Through these drills, we continually improve the company’s ability to prevent and respond to unexpected accidents, while also testing and refining the operability of our emergency plans and the effectiveness of their implementation.

　　(V) Closing Remarks of the Report

　　2019 was a pivotal year for the company’s continuous development. Moving forward, the company will consistently implement and enforce laws and regulations such as the Environmental Protection Law of the People’s Republic of China, earnestly strengthen environmental protection efforts, improve resource utilization, reduce and avoid the generation of pollutants, ensure the health of employees’ canteens, and promote sustainable economic and social development. We will also step up environmental protection initiatives, accelerate research and development of new products, further reduce energy and material consumption in our products, protect the environment, and make our due contributions to the prosperity, development, happiness, and harmony of society. We hope this report will enhance public awareness and understanding of our company, and we look forward to receiving constructive oversight from all sectors of society to help us continually improve our environmental protection efforts.

　　(6) Preparation Instructions

　　1. The time frame for this report is January 1, 2019 – January 1, 2020.

　　2 Date of this report’s release: May 2020

　　Our company promises that the contents of the above report are true and valid.