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Zhejiang NHU Co., Ltd.

  2022AnnualReport

      April 2023


      SectionI ImportantNotes,Contents,andDefinitions

The Board of Directors and its members, Board of Supervisors and its members,
and senior executives of the Company hereby guarantee that the information
presented in this annual report is authentic, accurate,complete and free of false
records, misleading statements or material omissions, and they will bear
individual and joint liabilities for such information.

Hu Baifan, the Company’s legal representative, Shi Guanqun, the officer in
chargeofaccounting,and Zhang Lijin, the headofaccountingdepartment hereby
declare that they guarantee the financial statements in this annual report are
authentic, accurate and complete.

All members of the Board of Directors have attendedthe meeting of the Board of
Directors for deliberation of this annualreport.

The future plan and other forward-looking information disclosed in this annual
report shall not be regarded as a commitment to investors. We kindly remind
investors of all possible risks in investments.

We draw your attention to item “XI. Outlook for the future development of the
Company” under “Section III Management Discussion and Analysis”, which
explicitly states the possible risks in business operation and countermeasures
thereon.
Profitdistribution proposaldeliberated andapprovedbythe meetingofthe Board
of Directors is as follows: Basedon the 3,073,421,680shares(totalshare capitalof
3,090,907,356excluding 17,485,676repurchasedshares[Note]),acash dividend of
5 yuan (tax included) will be distributed to all shareholders for every 10 shares,
and no bonus shares will be distributed, and the capital reserve will not be
convertedinto share capital.


Note:According to the “Rules onShare Repurchase of ListedCompanies”, shares in the special
account for repurchase of listedcompanies carry no right of profit distribution and conversion
of capital reserve into share capital.

If the Company’s totalshare capital changesdue to the conversion of convertible
bonds, share repurchase,exercise of equity incentives, refinancing and listing of
new shares,etc.before the implementation of the profit distribution proposal, the
totaldistribution will be adjustedaccordingly basedonthe same distribution ratio.
This AnnualReportisanEnglishtranslation oftheChineseAnnualReport.IncasetheEnglishversiondoesnotconformtothe Chineseversion, the Chinese version prevails.


                      Contents


Section I Important Notes, Contents, and Definitions......1

Section II Company Profile and Key Financial Indicators......6

Section III Management Discussion andAnalysis...... 11

Section IV Corporate Governance......37

Section V Environmental and Social Responsibilities......53

Section VI Significant Events......59

Section VII Movements in Shares and Conditionsof Shareholders...... 68

Section VIII Preferred Shares......75
Section IXBonds......76
Section X Financial Report......77

              DocumentsAvailableforReference

I. Financial statementssigned and sealed by the Company’slegal representative,officerin chargeof accounting,
and headof accountingdepartment;

II.Theoriginal auditor’s reportwith the seal of theaccountingfirm and thesignature andseal of the certified

public accountants;

III.Originals of all theCompany’sdocumentsandannouncementspublishedon newspapersdesignatedby the

China Securities Regulatory Commissionduring the reporting period;

IV. Otherdocumentsforreference.


                        Definitions

            Abbreviations                  Refers to                    Contents of definitions

The Company, NHU                          Refers to    ZHEJIANG NHU CO., LTD.

Daily Interaction                              Refers to    Daily Interactive Co., Ltd

CSRC                                      Refers to    China Securities Regulatory Commission

CSRC, Zhejiang Office                        Refers to    China Securities Regulatory Commission, Zhejiang Office

PPS                                        Refers to    Polyphenylene sulfide

PPA                                        Refers to    Poly phthalamide

VOC                                      Refers to    Volatile organic compound

NH-acid                                    Refers to    Taurine

HSE                                        Refers to    Healthy and safe environment

F5                                        Refers to    Vitamin B5

CNAS                                      Refers to    China National Accreditation Service for Conformity

                                                        Assessment

DSC                                        Refers to    Differential Scanning Calorimetry

ARC                                      Refers to    Accelerating ratecalori meter

RC1e                                      Refers to    Reaction calorimeter

XL                                        Refers to    Fragrances

PCY                                      Refers to