On August 12, 2026, the European Union’s new Packaging and Packaging Waste Regulation (PPWR) fully entered into force. The regulation will replace in its entirety the previous Directive 94/62/EC on packaging and packaging waste. Covering the entire life-cycle of packaging, it establishes a comprehensive management system on reducing packaging, recycling, increasing the use of recycled materials, promoting reuse, and reducing packaging waste, thereby becoming a key green trade threshold for companies exporting products to Europe.

Global New Material International (GNMI, 06616.HK) has completed specialized verification of packaging material indicators for its three brands—Chesir, SUSONITY, and CQV—and obtained corresponding compliance certificates. All packaging materials meet requirements of the PPWR regulation, laying a solid foundation of upstream supply chain compliance for downstream customers entering the EU market.

PPWR (Regulation (EU) 2025/40) is a new regulation officially released by the European Union on February 11, 2025 with the reference number (EU) 2025/40. It will take full effect from August 12, 2026, replacing the previous directive 94/62/EC (PPWD), which has been in force for nearly 30 years.

The new PPWR regulation imposes strict controls on every category of packaging component, including cardboard boxes, plastic films, cushioning materials, sealing tapes, and printed hang tags and limits on heavy metals such as lead, cadmium, mercury, and hexavalent chromium are mandatory baseline requirements. Exceeding these limits in any packaging component may result in goods seizure and checks, sales halt, fines, and other operational risks. Due to regulatory pressure from the EU, e-commerce platforms enforce standards generally higher than the legal baseline, placing greater requirements on upstream raw material suppliers’ capabilities in packaging compliance management.

Adhering to the concept of green and sustainable development, GNMI has established a comprehensive packaging compliance management system and launched dedicated PPWR packaging compliance initiatives. Chesir, SUSONITY, and CQV have systematically sorted and analyzed all packaging materials currently in use, conducted material-specific testing and verification, and strictly reviewed restricted substances such as heavy metals. Meanwhile, a full set of documentation, including test reports, supplier material certifications, and compliance certificates, has been archived. This enables the provision of traceable full packaging compliance records to customers and supports downstream customers in internal audits and reviews, reducing packaging compliance risks for partners entering the EU market.

Packaging compliance upgrades exemplify GNMI’s deep commitment to green manufacturing and ESG sustainable development philosophy. The Group consistently weaves green, low-carbon, and eco-friendly practices into the entire value chain from R&D to production, quality control, and packaging. Beyond focusing on end-point packaging compliance, it continuously advances green capabilities across the entire supply chain. Leveraging a mature green production system, GNMI subsidiaries have completed life-cycle carbon footprint verification and certification. With a precise carbon data management system, the Group supports downstream customers in addressing global carbon tariffs and green trade audits. Meanwhile, it continuously optimizes production processes, upgrades environmental protection facilities, promotes the application of clean energy, and advances lean energy consumption management to reduce energy use and pollutant emissions at the source, thereby building a comprehensive and systematic green manufacturing ecosystem.

Green development is a long-term, sustained effort that requires continuous technological advancement and constant environmental investment. Actively aligning with global green standards is essential to continuously strengthen the foundation of sustainable development. Going forward, Global New Material International will closely follow the phased implementation requirements of the EU PPWR regulation, continuously optimize its green packaging system, enhance ESG management, and refine full-process carbon footprint control. The Group will drive green production with technological advancement and empower industrial chain to go overseas with compliance capability. It will also continue collaborating with upstream and downstream partners to jointly advance the green transformation and eco-friendly co-development of the new materials industry, building a long-term, resilient, and sustainable green ecosystem for the sector.