From the afternoon of July 10 to July 11, the Safety Production Department and the Research Institute of Shenma Co., Ltd. formed a joint inspection team and conducted a special safety production inspection of all units within the nylon business segment, employing the “four noes and two straights” approach.

On July 9, a fire broke out at a shoe factory in Jinjiang, Fujian, resulting in 28 fatalities. On the morning of July 10, Shenma Co., Ltd. convened an educational briefing on the “Jinjiang Fire Accident in Fujian,” during which the incident was reported, its causes were thoroughly analyzed, and the underlying risks and shortcomings were identified. The company urged all units to strengthen safety management and resolutely prevent the occurrence of any safety-related accidents.

Following the meeting, Shenma Shares established an inspection team to conduct targeted audits, focusing on critical safety‑production areas and vulnerable conditions across all hazardous‑chemical units within the nylon business segment. In the area of fire safety, the inspections prioritized compliance with proper storage practices for hazardous chemicals, the unobstructed status of emergency access routes, and the serviceability of fire‑fighting and emergency response equipment. Regarding preparedness for extreme weather, the team thoroughly assessed the plant’s drainage systems and waterproofing facilities, as well as the implementation of emergency response plans, stockpiling of supplies, and on‑duty arrangements, thereby reinforcing safeguards for safe production during the flood season. In terms of production management, the company rigorously adhered to 6S standards, addressing issues such as haphazard material placement, unclear zoning, and inadequate equipment maintenance, while standardizing operational order at the worksite.

The inspection team also instructed all units to rigorously implement the grid-based management system for ideological and political work, including conducting thorough assessments of employees’ ideological trends, adjusting work and rest schedules, and ensuring unimpeded complaint channels, thereby fostering a harmonious and stable internal environment to support the company’s ongoing reform of its administrative departments.

The inspection adheres to a problem‑oriented approach, systematically compiling and categorizing on‑site findings from hazard identification. A problem list, a responsibility matrix, and a corrective action plan are established, with all units required to implement immediate rectification and achieve closed‑loop management within set deadlines. For serious violations, accountability will be pursued strictly in accordance with the Group’s and the company’s relevant regulations.

Going forward, Shenma Co., Ltd. will continue to strengthen its safety production management, further refine its closed-loop mechanism for identifying and addressing potential hazards, and conduct regular safety education and skills training, thereby building a comprehensive safety protection framework to ensure safe and stable operations and support the smooth advancement of all production and business activities.