2025

Sustainability

Report

SANY Heavy Industry Co. Ltd.CONTENTS

Contents

Building on Exploring Low- Giving Back

Compliance for Carbon Pathways for to Society to

First-Class 01 First-Class 03 Make First-Class Governance Practice Contributions 05

About This Report 02

Board Statement 04 Corporate Governance 32 Climate Change Response 56 Philanthropy 98

Message from the Chairman 06 Risk Control 33 Environmental Management 66 Rural Revitalization 100

About SANY Heavy Industry 08 Business Ethics 35 Ecological Protection 68 Social Rescue 102

Double Materiality Assessment 14 Green Development 71

Sustainability Management 18

Feature 24

Upholding the Leadership of Globalization

Digitalization and Decarbonization to Driving Developing a

Explore New Pathways for the Development

of the Engineering Machinery Equipment Technological People-Centered

Manufacturing Industry Innovation to Deliver Culture to Foster

First-Class Products02 First-Class Talent 04

Innovation-Driven 44 Compliant Employment 80 Quantitative Performance Table 106

Development

Talent Development 83 SSE Guidelines Index 111

Superior Quality 47

Employee Benefits 87 HKEX Guidelines Index 112

Sustainable Supply Chain 50

Health and Safety 90 GRI Index 115SANY Heavy Industry Co. Ltd. About This Report

2025 Sustainability Report

About This Report

This report is the 2025 Sustainable Development Report released by SANY Heavy Industry Co. Ltd. (hereinafter referred to as

"this Report"). This report is a true reflection of SANY Heavy Industry actively fulfilling the economic social and environmental

responsibilities and achieving sustainable development as well as a response to the key issues of concern to stakeholders.This report has been reviewed by the Board of the Company which is responsible for the authenticity and effectiveness of the

information contained herein. In the event of any data inconsistency the annual report shall prevail.Reporting Period Terminology

The reporting period covered by this report is from January 1 2025 to December 31 2025. To maintain the continuity of information For the sake of expression and readability SANY Heavy Industry Co. Ltd. is referred to in this report as "SANY Heavy Industry" "the

certain content has been retrospectively reviewed and extended. Company" and "we."

Reporting Scope Access to This Report

This report covers SANY Heavy Industry Co. Ltd. and its subsidiaries. This report is available for download and review on the official websites of the Shanghai Stock Exchange (www.sse.com.cn) the official

website of the Hong Kong Stock Exchange (https://www.hkexnews.hk) and the Company (https://www.sany.com.cn/en/).Data Sources

For any inquiries please contact the Company's securities affairs department:

All information and data in this report are derived from the Company's official documents statistical reports and financial reports as

well as information and data compiled aggregated and reviewed by the Company. This report is published in Chinese and English

versions. In the event of any discrepancy the Chinese version shall prevail. Unless otherwise specified the monetary unit used is RMB. Tel: 0731-84031555 Fax: 0731-84031555

Basis of Preparation Email: sanyir@sany.com.cn Postal code: 410100

This Report is prepared in accordance with the Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies— Address: 5/F New R&D Building SANY Industrial Park Liangtang Road Changsha County Changsha Hunan

Sustainability Report (Trial) the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Province China

Development Reports issued by the Shanghai Stock Exchange Appendix C2 to the Listing Rules of The Stock Exchange of Hong Kong

Limited the Environmental Social and Governance Reporting Guide (hereinafter referred to as the ESG Reporting Guide) and IFRS

Sustainability Disclosure Standard 2—Climate-Related Disclosures. It also references the "GRI Standards" of the Global Reporting Initiative

(GRI) the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) of the Chinese Academy of

Social Sciences and other authoritative standards domestically and internationally.< 2 3 >SANY Heavy Industry Co. Ltd. Board Statement

2025 Sustainability Report

Board Statement ESG Risk Management and Material Topics

The Board assumes overall responsibility for environmental social and governance (ESG)-related matters of SANY Heavy Industry The Board continues to pay close attention to the environmental and social risks and opportunities faced by the Company in the

Co. Ltd. (hereinafter referred to as "the Company") and is responsible for overseeing the establishment and effective operation course of business management and incorporates them into the overall risk management system. Taking into account industry

of the Company's ESG strategy management policies and related risk management system. The Board of the Company has characteristics regulatory requirements and the key concerns of stakeholders the Company identifies and evaluates ESG material

consistently regarded sustainable development as an important foundation for the long-term and steady development of the topics through stakeholder communication industry benchmarking and internal assessment among other approaches and develops

enterprise and continues promoting the integration of ESG principles into the Company's strategic planning business decisions the Company's annual materiality matrix. The Board reviews the identification and assessment process for material topics and ensures

and daily operations so as to advance the coordinated enhancement of enterprise value and social value. that the relevant topics are fully considered and effectively managed in the Company's strategy and operations and governance.ESG Governance Structure ESG Target and Performance Oversight

The Company has established an ESG governance structure led by the Board. The Board is responsible for examining the Company's Focusing on key areas such as green low-carbon development technological innovation employee development and supply

ESG development strategy major ESG risks and important matters and regularly hears reports from management employees on ESG chain responsibility the Company has formulated relevant ESG targets and action plans and continuously monitors progress toward

work. The management is responsible for promoting the implementation of the ESG strategy across business units and coordinating these targets through regular assessment and performance tracking mechanisms. The Board regularly reviews the Company's ESG

related work such as environmental management employee development supply chain management product responsibility and achievements and the performances of related indicators and based on changes in external policies and industry development trends

compliance governance. Through a cross-departmental collaboration mechanism the Company continues to promote the building of makes necessary optimizations and adjustments to the Company's ESG strategy and management measures.the ESG management system to ensure the effective execution and continuous improvement of ESG-related work.In the future the Board of the Company will continue to strengthen ESG governance capacity building promote the coordinated

development of environmental protection social responsibility and corporate governance continuously enhance our sustainable

development and create long-term value for customers employees shareholders and society.< 4 5 >SANY Heavy Industry Co. Ltd. Message from the Chairman

2025 Sustainability Report

Message from the Chairman

In 2025 the global industrial landscape is undergoing We adhere to globalization development and chart a new We remain committed to decarbonization-driven develop-

profound changes unseen in a century and the course through coordinated domestic and international ment and to contributing the "green strength" of the

whirlwind of technological revolution is sweeping advancement. With the resolve that "if we do not go global we equipment manufacturing industry. While promoting industrial

through manufacturing at an unprecedented pace. will be left behind" we are making every effort to advance our upgrading we have consistently regarded green development as

Facing the "super technology window" brought about globalization development strategy. From the completion and an important component of our long-term corporate strategy. The

by the convergence of the Fourth Industrial Revolution commissioning of the overseas lighthouse factory in Indonesia Company continues promoting a development model of "product

and the Third Energy Revolution SANY Heavy Industry to our products reaching more than 150 countries and regions electrification upgrades + green industrial chain coordination"

has always upheld its original aspiration of "Quality globally we have exported not only high-quality manufacturing with sales of major products such as electric excavators and mixers

Changes the World" taking the three core strategies— from China but also leading standards and management continuing to lead the market. To address global climate change we

globalization digitalization and decarbonization— as experience in intelligent manufacturing. In 2025 the localization systematically carry out climate risk and opportunity assessment

its core engines deeply integrating into the new stage rate of our overseas workforce approached 70% and we enhance climate resilience and contribute SANY's strength toward

marked by the conclusion of the nation's 14th Five- successfully launched high-end products such as the 400-tonne- global dual carbon goals and climate change response.Year Plan and the planning of the 15th Five-Year Plan class mining excavator. On international stages such as Bauma

and making solid strides on the path of high-quality 2025 and the China-Africa Economic and Trade Expo (CAETE) Adhering to a people-centered approach we stimulate

development. SANY products won recognition from customers globally. organizational vitality. In 2025 through a comprehensive

Through global resource allocation we are accelerating the talent development and incentive system we enabled more

enhancement of the Company's global capabilities and fostering than 5300 employees to share in the achievements of enterprise

the development of new quality productive forces. development. We are committed to nurturing an open inclusive

and vibrant organizational environment so that every employee

We remain committed to digitalization-driven development can achieve personal growth through innovative practice.and to winning this decisive turnaround battle in transforma -

tion. We are promoting the entire value chain of R&D manufacturing We shoulder responsibility and move forward together

SANY Heavy Industry Co. Ltd. and operations from "partial intelligence" to "holistic intelligence." with society. As an important force in the equipment

In 2025 leveraging our self-developed AI agent platform we used manufacturing industry we have always closely integrated

Chairman Xiang Wenbo AI to empower more business scenarios. At the Kunshan factories enterprise development with social responsibility. In the face

integrated intelligent innovation reduced production data latency to of disasters domestically and internationally including floods

20 milliseconds compressed products changeover time from 4 hours in East China and North China the typhoon in Zhanjiang and

to 15 minutes and raised the accuracy rate of visual quality inspection the earthquake in Myanmar the Company's equipment and

to as high as 99.5%. Practice has shown that digital and intelligent employees have consistently rushed to the front line putting

technologies not only reshape production methods but also unlock into action the simple belief that "national responsibility takes

new growth momentum for the traditional manufacturing industry. precedence over corporate profits."

Looking ahead we will continue to uphold long-termism steer by

the strategy of globalization digitalization and decarbonization

and driven by technological innovation continuously promoting

China's engineering machinery industry to a higher level and

contributing to the building of a greener smarter and more

sustainable world.< 6 7 >SANY Heavy Industry Co. Ltd. About SANY Heavy Industry

2025 Sustainability Report

About SANY Heavy Industry

Company Profile

Listed on July 3 2003 Sany Heavy Industry (600031.SH) holds the distinction of being the first enterprise in China to successfully

achieve full circulation through the reform of the equity division. In July 2011 Sany Heavy Industry accomplished another major Concrete T he main products include truck-mounted concrete pumps trailer pumps truck mixers and

feat by securing its place in the FT Global 500 list. Notably it is the only Chinese construction machinery company on the list. The Machinery concrete batching plants.year 2012 witnessed a pivotal moment in Sany Heavy Industry's journey as it completed the cross-border acquisition of Germany's

Putzmeister a globally renowned leader in concrete machinery and acquired a stake in Austria's Palfinger a recognized global Mainly used in railway highway metro hydropower station metallurgical engineering and

leader in truck-mounted crane machinery. Fast-forward to May 13 2021 when Sany Heavy Industry secured a spot in the Forbes other infrastructure construction as well as the real estate industry.Global 2000 list ranking 468th. This marked its debut in the Global 500 for the first time positioning it as the top-ranked Chinese

company and the second-ranked global leader in engineering machinery on the list.SANY Heavy Industry's leading products include full series of products such as concrete machinery earthmoving machinery cranes

road construction machinery and piling machinery. The Company's concrete machinery has maintained its position as the world's Earthmoving Mainly includes crawler excavators wheeled excavators loaders etc.No. 1 brand. In2020 our excavator sales topped the global rankings for the first time. Machinery

Mainly used in agriculture water conservancy railways highways construction real estate and

SANY Heavy Industry has established a global presence with industrial parks in Beijing Changsha Shanghai Kunshan Chongqing and mining industries.other locations in China as well as overseas R&D and manufacturing bases in India the United States Germany Brazil and Indonesia.Upholding the mission of "Quality Changes the World" SANY Heavy Industry invests more than 5% of its annual sales revenue in R&D

and is committed to delivering world-class products. Leveraging its strengths in technological innovation SANY Heavy Industry has won

the "State Scientific and Technological Progress Award" four times and the "State Technological Invention Award" twice making it the

recipient of the highest honors ever granted in the construction machinery sector since the founding of the People's Republic of China.Cranes Mainly includes truck cranes and crawler cranes.Supported by first-class product quality SANY equipment has participated extensively in landmark projects globally including the Burj Cranes are widely used in industries such as power steel bridges shipbuilding and petrochemicals.Khalifa Beijing Olympic venues London Olympic venues Brazil World Cup Stadium Shanghai Tower Hong Kong International Finance Among them small truck cranes are mostly used in municipal projects and other general cargo

Center the Hong Kong-Zhuhai-Macao Bridge Beijing Daxing International Airport and Xiong'an New Area. operations while large truck cranes and crawler cranes are used in industries such as power steel

shipbuilding and petrochemicals.Piling T he main product is rotary drilling rig mainly used in municipal engineering highway and bridge

Machinery construction industrial and civil buildings underground diaphragm walls water conservancy anti-

seepage slope protection and other foundation engineering applications.Road

Construction Includes rollers pavers graders and asphalt batching plants mainly used in the construction of pavement works on highways urban roads and airport runways.Machinery

< 8 9 >SANY Heavy Industry Co. Ltd. About SANY Heavy Industry

2025 Sustainability Report

Honors in 2025

Forbes Global 2000 Hurun China 500 Guinness World Records "Highest water jet from a fire Excellence-level smart factory

(maintaining the top position in China's (maintaining the top position in China's truck (prototype)" (JP100 aerial water tower fire truck (3)

construction machinery industry) construction machinery industry) jet height of 159.66 meters)

Forbes Hurun Research Institute Guinness World Records The Ministry of Industry and Information

Technology in China

China 500 List

Fortune

< 10 11 >SANY Heavy Industry Co. Ltd. About SANY Heavy Industry

2025 Sustainability Report

ESG Performance Highlights in 2025 Exploring Low-Carbon Pathways for First-Class Practice

Annual environmental protection investment reached RMB 280 million with energy-saving and consumption-reduction

initiatives delivering cumulative savings of RMB 72 million during the year.Three Core Strategy of "Globalization Digitalization and Decarbonization"

Of the 22 subsidiaries engaged in complete vehicle and component manufacturing 12 have obtained ISO 14001

Environmental Management System certification representing a certification coverage rate of 54.5%.The international main business revenue reached RMB 55.9 billion increasing by 15.14% year-on-year; the

proportion of international main business revenue was 64%. 100% of subsidiaries have secured pollutant discharge permits with wastewater exhaust gas and boundary noise

emissions fully compliant with applicable standards. Hazardous waste is handled in 100% compliance with no cases of

The coverage rate of intelligent overseas factories increased to 60% and the localization rate of overseas excessive discharge recorded.personnel approached 70%.Photovoltaic power generation systems have been deployed across all 22 subsidiaries. Total clean energy

The Company's products have covered more than 150 countries and regions globally; it promoted 60 products to

the global market developed 20 new products and successfully launched the 400-tonne-class mining excavator. consumption reached 77.3656 million kWh accounting for 14.7% of overall energy use.The Company has advanced the implementation of a total of 29 innovation projects with annual service calls of

the agent platform exceeding 4.5 million Developing a People-Centered Culture to Foster First-Class Talent

The Industrial Internet of Things (IoT) platform has covered 46 factories across 23 industrial parks connected

18000 devices and 33000 energy meters and developed more than 30 integrated applications based on The labor contract signing rate was 100% and no major labor disputes strikes or major layoffs occurred in the past three years.

Internet of Things data. Employees came from more than 40 ethnic groups with 3804 female employees and women accounted for

14.3% of the senior management team.

The Company launched an employee stock ownership plan valued at approximately RMB 523 million covering

5382 employees and also fulfilled medium and long term incentives of RMB 332 million granted in previous years.

Building on Compliance for First-Class Governance During the year 1451 employees newly obtained professional certifications including 715 external certifications; the

Company supported outstanding employees in pursuing further studies at universities with 20 new participants added

Convened 1 Annual General Meeting and 5 Extraordinary General Meetings; held 10 Board meetings with a during the year bringing the cumulative total to 289.

100% director attendance rate. A total of 4841 training sessions were conducted with 31717 cumulative participants in training. The

Conducted 33 risk control training sessions throughout the year covering 2046 participants. percentage of employees trained reached 94.6% and the average training duration per person was 140.56

100 hours. 407 employees in need received support with RMB 550000 in relief funds granted.Achieved a % signing rate of integrity and anti-corruption commitment letters among directors employees

in key positions business personnel and mid-level managers in the manufacturing division totaling 3446 An annual employee service satisfaction survey was conducted covering more than 60000 person-times with an

signatories. overall satisfaction score of 95.75.Handled 95 integrity-related complaints and reports with a 100% resolution rate. Among the 22 main machine and parts manufacturing subsidiaries a total of 10 subsidiaries passed external

reviews and obtained the ISO 45001 occupational health and safety management system certification.Achieved full coverage (100%) of anti-corruption audits across core business processes.The occupational health and safety targets for the year were achieved with the thousand-person injury rate at

Achieved a 100% signing rate of integrity cooperation agreements and commitment letters with suppliers. 1.33‰ the completion rate of three-level safety education training at 100% the number of occupational disease

cases at 0 and occupational health examination compliance at 100%.A total of 202837 cumulative participants attended health and safety-related training with cumulative training

hours reaching 365478 hours. Work safety responsibility exams were conducted with 25000 cumulative

Driving Technological Innovation to Deliver First-Class Products participants and a passing rate of 100%.R&D investment reached RMB 5.169 billion accounting for 5.79% of main business revenue; the Company

had a total of 5720 R&D personnel representing approximately 20.09% of total employees. Giving Back to Society to Make First-Class Contributions

The Company filed 596 domestic patent applications and obtained 820 authorizations; it filed 23

international patent applications and obtained 47 authorizations overseas; it also obtained 68 computer Total donations to various public welfare funds amounted to approximately RMB 22.36 million with cumulative

software copyrights. donations exceeding RMB 360 million.

22 subsidiaries had obtained ISO 9001 quality management system certification with a coverage rate of 100%. A total of 129 public welfare activities were carried out during the year contributing 5964 volunteer service hours.

The customer satisfaction survey score was 93.0 points and the customer satisfaction rate for complaint The "SANY Public Welfare" platform registered 28658 volunteers established 62 volunteer teams and conducted

handling was 84.1%. activities across 23 cities nationwide with cumulative volunteer service hours reaching 11205.7 hours.The supplier satisfaction survey score was 4.351 points which was an increase compared to previous years.; During the reporting period volunteer services engaged 1860 participant instances benefiting 2926 individuals.targeted support and capability enhancement were provided for 190 suppliers. Total disaster response duration reached 51 days during the year with 32 units of construction machinery

deployed and 72 personnel mobilized.< 12 13 >SANY Heavy Industry Co. Ltd. Double Materiality Assessment

2025 Sustainability Report

Double Materiality Assessment SANY Heavy Industry Stakeholder Communication Strategy

Communication Channels & Feedback

In accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Stakeholders Key Concerns Methods

Report (Trial) SANY Heavy Industry identifies sustainable development-related material topics by following the principle of

"double materiality." This principle requires consideration of both the impact of topics on the Company's finance value (financial C orporate governance

materiality) and the impacts of the Company's business activities on the economy the environment and society (impact

materiality). Through a comprehensive assessment of these two dimensions we identify topics that are critical to the Company's B usiness ethics

long-term value creation and have substantial impacts on internal and external stakeholders so as to ensure that sustainability C ircular economy

management is closely aligned with the Company's core strategy and social responsibility. P ollutant & waste management O n-site inspectionsGovernment

departments/regulators C limate change response M eetings and discussions

Material Topic Identification E nvironmental compliance F ield investigationsmanagement

B iodiversity conservation

The Company identifies material sustainable development topics through a systematic process with extensive reference to E nergy management

mainstream standards and industry practices domestically and internationally while taking into account its own business

characteristics and strategic direction to develop a preliminary list of topics. At the same time we supplement and refine this list of C orporate governance G eneral meeting of shareholders

topics through communication with management employees analysis of industry trends and research on policies and regulations Shareholders E SG management F ield investigations

so as to ensure that the topics cover the core areas of Environmental Social and Governance (ESG) and are aligned with the actual B usiness ethics R oadshows

circumstances of the Company's operations.C orporate governance C orporate announcements

Impact Materiality Assessment E SG management I nvestor meetingsInvestors P roduct quality & safety R oadshows

R esearch & innovation C onference calls

The impact materiality assessment systematically identifies and measures the key environmental and social impacts arising from

the Company's business activities. By establishing three core assessment frameworks covering the core requirements of stock E mployee rights & benefits E mployee training

exchanges the level of attention from industry peers and the requirements of international institutions such as MSCI the Company Employees H ealth & safety U nion activities

comprehensively analyzes the severity breadth and reversibility of the potential impacts of its ESG topics. At the same time we fully E mployee training & development E mployee satisfaction surveys

incorporate feedback from internal and external stakeholders in the assessment process and ultimately derive the conclusions of

the materiality assessment providing a clear basis for decision-making for the Company's strategic resource allocation risk control S upply chain management

priorities and sustainable value creation. P roduct quality & safety O n-site assessments

B usiness ethics Q uality communication

Suppliers

Stakeholder Communication D ue diligence S upplier training and support

E nvironmental compliance

Management G eneral meetings of suppliers

To understand stakeholders' views on the Company's decisions regarding the impact materiality of ESG topics and to meet their P ollutant & waste management

expectations and demands the Company actively maintains close communication with all parties through diversified communication

channels while providing timely responses and effective engagement on the core topics of concern to different participants across the P roduct quality & safety M arket research

value chain. C limate change response C ustomer satisfaction surveys

Customers R esearch & innovation P ress conferences

D ata security & customer privacy

protection O nline and offline campaigns

R ural revitalization & social

contribution C ommunity discussions

Communities public C ircular economy

and NGOs C ommunity engagement

C limate change response O nline outreach

B iodiversity conservation

D ue diligence S trategic cooperation

Partners

B usiness ethics E xecutive-level exchanges

< 14 15 >SANY Heavy Industry Co. Ltd. Double Materiality Assessment

2025 Sustainability Report

Financial Materiality Assessment Double Materiality Assessment Results

The financial materiality assessment aims to systematically analyze how sustainability topics are translated into actual financial Based on the above double materiality assessment the Company has ultimately identified the materiality topic matrix of sustainable

impacts through the Company's specific operations. This assessment focuses on the core business processes directly associated with development material topics that require priority attention management and disclosure during this reporting period. These topics are

each topic including raw material procurement R&D construction manufacturing production logistics and warehousing aftermarket of high priority in the Company's strategy and are a focus of decision-making and resource allocation by management employees. The

service and downstream customer interactions among other full-process nodes and analyzes the specific financial performance they specific content management approaches and performance of the relevant topics will be elaborated in detail in subsequent sections

may trigger in the daily and overall operations of the enterprise. of this report.The Company's financial materiality assessment specifically covers various financial impacts arising from risk management

efficiency improvement innovation and relationship maintenance such as risk-related expenditures including potential fines and Materiality Topic Matrix

compensation production interruption losses quality costs and emergency procurement premiums as well as benefits realized

through savings in raw materials and energy use sales revenue from green products tax incentives increased customer share and

optimized financing costs. At the same time we also pay attention to the necessary investments made to safeguard operations such

as costs related to safety corrective actions technology R&D and employee training. High

By closely linking specific topics business processes and clear financial impact pathways involving revenue costs assets liabilities R&d and innovation Employee rights S upply chain

and cost of capital we are able to precisely identify the key financial drivers that affect the Company's value thereby providing a and welfare management

substantive basis for decision-making on strategic resource allocation operational risk control and long-term value enhancement. Data security and customer privacy protection C limate change Product quality and

response safety

H ealth and safety Customer service

Water resource Environmental Energy management

utilization compliance Business ethics

Corporate governance management Pollutant and waste management

Rural revitalization and Biodiversity

social contribution conservation

Circular economy

Employee training and Due diligence

development

Low Impact materiality High

Environmental Social Goverance

<1617>

Financial materialitySANY Heavy Industry Co. Ltd. Sustainability Management

2025 Sustainability Report

Sustainability Management

SANY Heavy Industry has built a systematic multi-level and comprehensive ESG management framework. Through a clear

governance structure a strategic pathway that integrates with its core business science-based ESG risk control mechanisms and Strategy

internationally aligned indicators and targets the Company comprehensively promotes sustainable development practices and

continuously creates long-term value. To systematically address the challenges and opportunities of sustainable development SANY Heavy Industry has deeply integrated

the three core strategies—globalization digitalization and decarbonization—into its ESG management framework and has conducted

Governance dedicated analysis of risks and opportunities for financial material topics. We formulate and execute corresponding response measures

in light of market trends to ensure that the Company's ESG strategy remains sufficiently resilient can dynamically adapt to internal and

To achieve scientific systematic and standardized management of the environmental social and corporate governance system external changes and continuously advances the achievement of sustainable development targets.SANY Heavy Industry has formulated the Detailed Working Rules for the Sustainability Committee and established a three-tier ESG

management structure composed of the Board the Sustainability Committee and the Sustainable Development Working Group. Short to Medium to Short medium

Meanwhile the Sustainability Committee convenes at least one regular meeting each year and may hold extraordinary meetings when medium term long term and long term

necessary ensuring the continuous promoting and effective implementation of ESG-related work. SANY Heavy Industry Risk and Opportunity Management1

Division of ESG Management Responsibilities

Type Area Level Reporting Overview Response Measures

M akes final decisions on sustainable development work and approves the Company's ESG vision target Period

The Board strategy and major policies including management policies for key topics such as environmental Establish a tiered and categorized performance and compensation

matters business ethics and health and safety. system implement multi-channel incentives such as incremental

As competition for talent intensifies profit sharing and incentivizing innovation and safeguard

Receive reports from the Sustainability Committee on ESG-related matters including esg risk management and employees' expectations for remuneration competitiveness.performance outcomes and the review of ESG disclosures; and oversee the incorporation of key esg career development and work Improve "Talent promotion pathways" implement succession plans

performance indicators such as environmental health and safety metrics into executive compensation experience continue to rise whether and specialist talent management and provide employees with Risk/ Employee the Company can establish a competi-

frameworks. systematic training and career growth support.Opport- rights and High tive incentive system provide clear

unity benefits career development pathways and Improve the system of workers and staff congress and labor unions

R eviews and approves ESG-related disclosure documents issued by the Company ensuring compliance safeguard employees' democratic keep diversified communication channels such as the Chairman's Mailbox open and regularly conduct employee satisfaction surveys

with regulatory requirements and responding to the concerns of investors and rating agencies. rights and care will directly affect

talent attraction retention and and service improvement.organizational effectiveness. Implement support mechanisms for employees in need regularly

organize cultural recreational and mental health activities and

S trategic planning: coordinates and promotes ESG system building formulates the Company's ESG vision enhance employees' sense of belonging and organizational cohesion.Sustainability target and strategy and focuses on the long-term management of environmental opportunities such as

Committee climate change and clean technologies as well as social topics such as business ethics and health and safety. E stablish a three-tier governance structure of the "Board-Sustainability Committee-intelligent manufacturing management

Risk control: identifies evaluates and continuously monitors material ESG risks and opportunities

department" to clarify the HSE strategic oversight and management

responsibilities at each level.including corruption and business ethics risks environmental compliance risks and occupational health Operational risks faced by manufactur-

and safety risk and provides relevant management recommendations to management employees. ing businesses are complex. Once a

Strictly implement the ISO 45001 system improve institutional

safety accident occurs it may severely processes and strengthen graded risk management and hazard

Risk/ Health affect employees' lives and health the

identifications Governance.Research and guidance: studies examines and guides the formulation of the Company's core ESG Opport- and safety High Company's operations reputation C onduct full-coverage safety training and emergency drills. In 2025

policies including codes of conduct for environmental matters business ethics health and safety and unity and compliance. Meanwhile a sound the Company organized more than 480000 participants in training

the supply chain and promotes their effective execution. HSE system is a core competitive sessions and conducted 440 drills enhancing the safety awareness strength for attracting talent and and emergency response capabilities of all employees.safeguarding stable production.Supervision audit and training: supervises the establishment operation and certification maintenance of I ntegrate contractors and other stakeholders into unified safety

the Company's ESG management system regularly audits ESG performance environmental impacts and management and implement whole-process supervision. Continue to carry out occupational health monitoring and mental health

compliance status and ensures smooth whistleblowing channels and the provision of relevant training. support to safeguard employees' physical and mental health.Other matters: conducts research and provides recommendations on other major sustainable development The stability compliance and

matters and handles other related matters authorized by the Board. sustaina bility of the supply chain face I mprove all stages of supplier management strictly implement

multiple risks including geopolitical admission review performance evaluation and tiered elimination

tensions trade frictions raw material mechanisms leverage the iGSP platform to realize digitalization

price fluctuations extreme weather and transparency throughout the entire procurement process and

Sustainable Develop- and suppl i ers ' own busi ness

regularly conduct risk screening and disposal.Risk/ Supply management and ESG performance D eeply integrate ESG requirements into the supply chain by ment Working Group M eeting affairs and execution: prepares meetings of the Sustainability Committee implements the Opport- chain High which may af fect production incorporating key indicators such as environmental human rights

Committee's various resolutions and coordinates all departments in the execution of ESG-related unity

manage- continuity cost control and brand quality and business ethics into the review process and promote

ment reputation. At the same time suppliers' energy conservation emissions reduction and green

policies and action plans. digitalization-enabled collaboration transformation to jointly build a responsible supply chain.green procurement and supply chain E stablish the "Supplier Alliance" and deepen collaboration through

Daily supervision: continuously supervises the execution of the Company's ESG work and collects and resilience building are important technical exchanges special support and satisfaction surveys to

sorts ESG performance data to support management decision-making and external disclosure. opportunities to improve efficiency enhance the overall capability and resilience of the supply chain and reduce risks and create competitive safeguard the security of critical material supply.advantages.

1 For more details please refer to Climate Change Response.

< 18 19 >SANY Heavy Industry Co. Ltd. Sustainability Management

2025 Sustainability Report

Short to Medium to Short medium Impact Risk and Opportunity Management

medium term long term and long term

Reporting To standardize the Company's ESG risk management SANY Heavy Industry has incorporated ESG risks into the Company's overall risk Type Area Level Period Overview Response Measures management system and systematically carried out whole-process management covering risk identification analysis and assessment

control response and continuous improvement.Product quality defects or safety

hazards may lead to safety incidents We have enhanced the digital quality management system strictly

product recalls and customer claims controlled all processes including design incoming materials

seriously damaging brand reputation production and after-sales service and used the quality information

and market trust and triggering system to enable real-time monitoring of problems and implement

compliance risks. As technology closed-loop management.Risk/ Product complexity and regulatory require-ments increase the difficulty of We have formulated the "Accountability Management System for Impact Risk and Opportunity Management Process of SANY Heavy IndustryOpport- health and High risk control also rises. Through Major Quality Defects " and regularly carried out certification of unity safety digitalization-based and refined the quality management system to prevent major product safety

quality management covering the incidents.entire process from R&D to after- We have strengthened quality management with suppliers used

sales service the Company can quality managem ent as the standard for access and evaluation and

systematically reduce risks deliver implemented supplier quality inspection and provide to safeguard

superior quality and build a core product quality at the source. Risk identification Risk analysis and assessment

competitive advantage.Inefficient customer response impro- Starting from the three dimensions of environmental Risks identified are analyzed and assessed across

per complaint handling or customer W e have upgraded the digitalization-based customer service system social and governance and centering on the three dimensions—degree of impact frequency of

data leakage may directly lead to standardized complaint handling standards and procedures and

customer loss lower satisfaction continuously tracked processing progress and make improvements. identified ESG topics the Company systematically occurrence and degree of harm—and are classified

legal proceedings and reputational

damage. In the era of digitalization We have built a sound data security and privacy protection system

identifies relevant risks in its operations and based on the scoring results into three levels (high

clarified requirements for all-stage management of data implemented gradually establishes and regularly updates an ESG medium and low) thereby determining the order of Risk/ customers' expectations for service

Opport- Customer High eff ic iency transparency and system security certification data protection measures and risk database. priority for risk management.unity service privacy protection continue to rise. employees' compliance training and strictly prevented information

Upgrading the service system through leakage incidents.digitalization strengthening privacy W e have enhanced key account management and multi-channel

protection and deepening customer customer communication regularly conducted a satisfaction survey

communication are key opportunities integrated customer feedback into the optimization of products and

to enhance customer loyalty and service and enhanced customer experience and brand recognition.unlock long-term value.Amid the global industrial transform-

ation toward digitalization intelli gence We have defined the three-core strategy of globalization Risk response Risk management

and sustainability technological digitalization and decarbonization established a three-tier R&D

iteration is accelerating and customer management structure comprising the R&D Technical Committee

demands are evolving. Companies the seven technical committees and the specialized technical

that underinvest in R&D maintain subcommittees and improved governance documents such as

For medium- and high-level risks corresponding Based on risk assessment results and differences in

rigid innovation mechanisms or the R&D Project Input-Output Management Measures. risk response procedures and contingency plans are risk levels graded and categorized control measures

Risk/ pursue directions misaligned with We have implemented diversified incentive and talent development developed to ensure timely and effective response and are formulated and implemented. High risks are

Opport- R&D and High market needs risk falling behind mechanism with dedicated incentive programs targeting key disposal in emergency situations. addressed with comprehensive control plans

unity innovation in core technologies declining focus areas. We have launched systematic R&D training and product competitiveness and loss of certification programs to build a structured professional talent while medium risks are managed through targeted

market share. Conversely building pipeline. initiatives to ensure effective implementation of risk

a forward-looking efficient and We have established active industry-academia-research collaboration

open innovation ecosystem can lead prevention and control.with universities such as Dalian University of Technology. Through joint

industry technological development R&D and technical exchange we use external expertise to tackle cutting-

create dif ferentiated product edge technological challenges and accelerate the commercialization of

advantages and shape a green and innovative outcomes.intelligent brand image.The Company has accumulated

extensive operational data customer We have established a data compliance management structure

information and product data. Any guided by the responsible Board Director and formulated policies

incidents of data breach tampering such as the Data Security Management Policy and Customer Privacy Summary and continuous improvement

misuse or non-compliant cross- Policy to define management requirements and accountability for

border data transfer could directly data security and customer information.Data result in the collapse of customer

security trust exposure to substantial litigation We have implemented security measures including disaster recovery ESG risk management work is summarized annually changes in internal and external risk trends of the Company are Risk/ and and regulator y penalties and backup and data sandboxing for core IT systems. We have obtained analyzed and control and response measures are continuing to optimize in light of industry developments so as to Opport- customer High severe damage to brand reputation. Certifications such as ISO 27001 (Information Security Management unity System) and Cybersecurity Classified Protection assessments. continuously enhance the level of ESG risk management.privacy At the same time building an

protection industry-leading data security and We have signed cross-border data transfer agreements with overseas

privacy protection framework is a subsidiaries and other relevant parties. We have conducted 100%

cornerstone for earning the trust of compliance review at the system initiation and go-live stages. We

customers and partners ensuring signed and reviewed the Information Security and Confidentiality

the resilient operation of digital Agreement with partners on a regular basis incorporating third-party

businesses and fulfilling corporate risks into the overall risk management framework.social responsibility.< 20 21 >SANY Heavy Industry Co. Ltd. Sustainability Management

2025 Sustainability Report

Metrics and Targets Social

Employee rights 4.1 Compliant employment

We actively respond to the United Nations Sustainable Development Goals (UN SDGs). Based on our own professional strengths and and welfare 4.3 Employee benefits

resources we focus on priority goals that are highly relevant to our operations and commit to taking specific actions on relevant social

and environmental topics. We have deeply integrated ESG targets into our development strategy and daily operations advancing

sustainable development in tandem with core business metrics. Employee training and

4.2Talent development

development

Response to the United Nations Sustainable Development Goals Health and safety 4.4 Health and safety

Data security and customer

privacy protection 2.2 Superior quality

5.1 Philanthropy

Rural revitalization and

5.2 Rural revitalization

social contribution

5.3 Social rescue

Supply chain management 2.3 Sustainable supply chain

Environmental

Product quality and safety 2.2 Superior quality

Climate change tackling 3.1 Climate change response

R&d and innovation 2.1 Innovation-driven development

Usage of water resources 3.4 Green development

Customer service 2.2 Superior quality

Pollutant and waste management 3.3 Ecological protection

Energy management 3.4 Green development

Governance

Environmental compliance 3.2 Environmental

management management

ESG governance

Ecosystem and biodiversity Corporate governance

protection 3.3 Ecological protection

1.1 Corporate Governance

Due diligence 1.2 Risk Control

Circular economy 3.4 Green development

Business ethics 1.3 Business ethics

< 22 23 >SANY Heavy Industry Co. Ltd. Feature: Upholding the Leadership of Globalization Digitalization and

2025 Sustainability Report Decarbonization to Explore New Pathways for the Development of the

Engineering Machinery Equipment Manufacturing Industry

Globalization of Operations Localized Operations and Service

Adhering to the business strategy of "group leadership local operation and As of the end of the reporting period

service first" the Company continues to improve its global marketing and service the localization rate of overseas

Feature network. By establishing overseas regional and country offices as platforms for strategic planning and empowerment the Company advances deep localization in

management and operations. personnel was close to 70%

forming a global talent pipeline.Upholding the Leadership of Globalization Digitalization

and Decarbonization to Explore New Pathways for the Case? ? SANY Heavy Industry Participates in the 34th Bauma 2025

Development of the Engineering Machinery Equipment On April 13 2025 SANY Heavy Industry appeared at the 34th Bauma 2025 themed "A World of Efficiency—Partners

Manufacturing Industry for Excellence." During the exhibition the Company showcased 66 high-end equipment units including compliant products and electrified equipment customized for the European market attracting great attention from professional

Against the backdrop of profound changes in the global industrial landscape SANY Heavy Industry takes the strategy of customers globally. Meanwhile the live demonstration of the Mechlink intelligent excavation system attracted more

"globalization digitalization and decarbonization" as its guidelines comprehensively promoting enterprise transformation than 200 participants to experience it firsthand with its intelligent safe user-friendly and efficient product features

and industrial upgrading. We take digitalization technology as the core driving force to lead the deep integration of digitalization fully demonstrating the company's technological strength in areas such as intelligent and green development.with product innovation intelligent manufacturing and intelligent operations while continuously promoting the global layout

from "exporting products" to "industrial globalization" and accelerating the development of an efficient and collaborative

global value chain. At the same time we remain firmly committed to low-carbon development and actively promote the R&D

and application of electrification hybrid and clean energy technologies injecting green momentum into the sustainable

development of the global equipment manufacturing industry.Adhering to Globalization Development and Advancing a New

Phase Through Coordinated Domestic and International Efforts

The Company adhering to the resolve that "if we do not go global we

will be left behind" regards globalization as its primary development SANY Heavy Industry Exhibition Area Customers Experience the Mechlink Intelligent Excavation System

strategy and drives a profound transformation from "product exports"

to "industrial globalization" Through the global deployment of the

full industry chain spanning R&D manufacturing sales and service

the Company actively fosters new quality productive forces and

continuously opens a new landscape for globalization development. Globalization of Products Building a Coordinated R&D System

Globalization of Manufacturing Building a Global Manufacturing Network The Company has established a "1+5+N" globally coordinated R&D system. The "1" refers to the China global R&D center as the

hub; the "5" refers to five major R&D bases in Germany the United States Japan India and Indonesia focusing on the emerging

The Company has deeply advanced localized production overseas and is steadfastly promoting the globalization of needs and compliance standards of regional markets; and the "N" refers to leveraging the global sales network to extensively

manufacturing. In the international market in addition to continuously upgrading factories in the United States and Germany we collect scenarios and customer feedback thereby responding precisely to local market needs. Through deep localized innovation

have also built new overseas factories in Indonesia South Africa and Türkiye accelerating the globalization of manufacturing and the Company has successively launched excavators that comply with the Euro V Emissions standard

2 electric mixers that have

actively promoting the replication application and upgrading of China's intelligent manufacturing standards. obtained EU Whole Vehicle Type Approval (WVTA) and customized special-purpose models for regions such as Africa and the

Middle East featuring high-temperature resistance and sand and dust protection thereby forming a product matrix that covers

Case? ? China's Manufacturing Goes Global to Realize the Localization of Intelligent different market segments and operating-condition requirements. By the end of the reporting period the Company's products

Manufacturing Bases had covered more than 150 countries and regions globally achieved rapid growth in mature high-end markets such as Europe

and the United States and established a competitive position alongside rivaling international brands.SANY Heavy Industry has systematically exported China's advanced intelligent manufacturing system green technology

and management standards globally completing a strategic upgrade from single-product trade to deeply localized

operations. Based on the industrial foundation and market demand of different regions the Company has precisely In 2025

established the intelligent manufacturing bases in Indonesia and India building a global manufacturing network that Products launched Products newly Brought to the

is collaborative efficient and uniquely differentiated. Through technology empowerment supply chain integration on the global market developed market

and green operations the company has deeply integrated China's standards with localized innovation significantly

enhancing its global competitiveness and sustainable influence in the global market. 60 20 400tonne-class mining excavator

As of the end of the reporting period the Indonesia base achieved a 40% faster response to orders annual carbon

dioxide emission reduction of 1800 tonnes and an increase in the localization rate of core components to 78%. The 2 Euro V Emission Standard: This is the fifth-generation European standard for vehicle exhaust emissions limiting maximum particulate emissions to 0.005

India base shortened the supply cycle for key components to 7 days and launched products suited to high-temperature g/km and nitrogen oxide (NOx) emissions to 0.2 g/km. Following the implementation of the "Euro V" standard all new diesel vehicles are required to be

environments reducing the failure rate by 60%. fitted with particulate filters.< 24 25 >SANY Heavy Industry Co. Ltd. Feature: Upholding the Leadership of Globalization Digitalization and

2025 Sustainability Report Decarbonization to Explore New Pathways for the Development of the

Engineering Machinery Equipment Manufacturing Industry

Intelligent Manufacturing Lighthouse Factory Leading Digitalization

The Company aims to deliver a new-generation lighthouse factory by deeply integrating the self-developed industrial software building

a digital management system covering the entire production process and creating a central intelligence hub for factories. In 2025 the

coverage rates of the intelligent manufacturing operations management platform (iMOM) intelligent warehouse management system

(iWMS) and intelligent advanced planning and scheduling system (iAPS) reached 71% 93% and 87% respectively.On this basis Changsha No. 18 Factory introduced an industrial large-scale model to enable intelligent autonomous decision-

making in processes such as production scheduling quality inspection and equipment maintenance and has scaled up the

application of systems such as welding robots and smart visual quality inspection to continuously improve manufacturing

Pursue Digitalization Development and Achieve Transformation precision efficiency and quality.SANY Heavy Industry regards digitalization as the core engine of high-quality development comprehensively integrating

digitalization into the entire value chain of R&D manufacturing and operations and centered on the "Business Online" target Case? ? Kunshan Factory Innovates with 5G Intelligent Manufacturing

systematically promoting the enterprise's transformation from "partial intelligence" to "overall intelligence." By building

a globally unified digitalization platform and deepening the integration of business scenarios the Company has achieved In 2025 the Kunshan Excavator Factory achieved full 5G coverage across

systematic breakthroughs in three key areas: intelligent products intelligent manufacturing and intelligent operations. all 18 production processes from raw materials to finished products

enabling real-time collection of over 5000 data points and reducing data

latency to 20 milliseconds. Through a modular production line design

Intelligent Products Driving the Intelligent Upgrading of Products the factory supports flexible mixed-line manufacturing of six major series

and 42 excavator models significantly reducing product changeover

time from four hours to just 15 minutes. In quality inspection a vision-

With intelligent construction machinery products at the core the Company has built an intelligent product portfolio covering based inspection system has been deployed achieving a defect detection

excavators mixers rollers pavers cranes etc. Through the deep integration of key technologies such as 5G remote control and accuracy rate of 99.5% and driving the transition toward more intelligent Kunshan Excavator Factory

unmanned operation technology the Company has launched a series of equipment featuring auxiliary systems such as the and efficient quality control processes.Mechlink intelligent excavation system as well as remote control and autonomous driving functions. These are widely applied

in scenarios such as smart mines and construction projects leading the industry toward an "unmanned intelligent era."

To continuously drive product innovation the Company has enhanced employees' technology application capabilities

and digitalization literacy by organizing more than 200 special digitalization training sessions. Relying on its self-developed

intelligent agent platform the Company has integrated core tools such as intelligent agents and intelligent workflows. In Intelligent Operations Data Enhances Value Chain Efficiency

2025 the Company advanced the implementation of 29 innovation projects in key areas such as R&D marketing and HR. The

intelligent agent platform provided over 4.5 million times of service annually realizing the transformation of technology tools With "linking data globally" as the main thread the Company has integrated data across overseas business systems to build

into the core productivity continuously expanding the digitalization capabilities of its products and providing customers with an operations system that is transparent across all domains real-time online and intelligently collaborative. The Company's

more efficient and safer intelligent equipment solutions. self-developed the Industrial Internet of Things (IIoT) platform adopts a "1+1+N" (IoT + NSLINK + applications) architecture

and continually enhances data collection storage computing and application capabilities across scenarios. At present

the platform covered 46 factories in 23 industrial parks connected 18000 pieces of equipment and 33000 energy meters

and built more than 30 integrated applications based on IoT data including energy management process optimization

Case? ? SCC3200T Crane Sets a New Benchmark in the High-End Market and interconnected applications. In 2025 related applications cumulatively achieved cost reductions of RMB 72 million in

manufacturing processes.To meet demand in the global high-end market for intelligent

and green lifting equipment the company launched the The Company has continued promoting the extension of the Industrial Internet of Things overseas completing the integration

SCC3200T the first 300-tonne-class crawler crane compliant and value mining of databases across business units while simultaneously carrying out adaptive upgrades for overseas data

with the EU stage V emissions standard. This product integrates compliance. Through the "My SANY" intelligent operations platform the Company provides customers with monitoring

advanced technologies such as digital twin-based planning and working conditions and warning services significantly enhancing customer satisfaction and brand trust.intelligent safety control significantly improving operational

accuracy and safety. In international projects such as the

Fremantle bridge renovation project in Australia two SCC3200T

crawler cranes demonstrated outstanding adaptability under Case? ? Intelligent Diagnosis by the Overseas Maintenance Assistant

complex working conditions including narrow spaces and

waterside environments by virtue of their stable design In response to the challenges of difficulty in diagnosing overseas equipment failures and limited expert resources

without outriggers and powerful lifting performance. By the the company developed the intelligent "overseas maintenance assistant" based on the global service command

end of 2025 the SCC3200T crane has achieved sales revenue of center (GSC) project. Users can describe fault symptoms verbally to quickly obtain intelligent diagnostic

RMB 120 million while derived models secured RMB 2.2 billion recommendations troubleshooting steps and relevant parts information. In 2025 the number of registered users

in orders before launch marking a new breakthrough in the SCC3200T Crawler Cranes in the Fremantle Bridge of this application exceeded 1000 with cumulative usage surpassing 43000 times continually enhancing the

global competitiveness of China's high-end equipment. Renovation Project in Australia efficiency of resolving overseas service issues.< 26 27 >SANY Heavy Industry Co. Ltd. Feature: Upholding the Leadership of Globalization Digitalization and

2025 Sustainability Report Decarbonization to Explore New Pathways for the Development of the

Engineering Machinery Equipment Manufacturing Industry

Decarbonization Across the Industrial Chain Building Green Ecosystems

At the industrial chain level we are building a low-carbon ecosystem through "green supply chain management + environmentally

friendly manufacturing" establishing a full-process carbon reduction system covering R&D manufacturing and energy

management helping customers reduce total cost of use and supporting users in international markets such as the European

Union in meeting carbon regulatory requirements thereby demonstrating the systemic value of new quality productive forces in

energy conservation and carbon reduction.Pursuing Low-Carbon Development to Contribute "Green Strength" Establishing an ESG tiered C ontinuously carrying out

to the Equipment Manufacturing Industry management system for suppliers Green Greening of environmental protection technology using energy use and carbon supply chain + manufactur- upgrades systematically reducing water

SANY Heavy Industry is driven by new quality productive forces and is advancing on two fronts centered on product emissions as key assessment manage- resource use and energy consumption ing

electrification upgrades and green industrial chain coordination systematically building a decarbonization transformation indicators to drive green upgrading of ment and improving resource efficiency in

pathway to become a globally leading pioneer in low-carbon development in the construction machinery sector. the industrial chain at the source. the manufacturing process.At present the Company has become one of the globally leading businesses in decarbonization in the construction machinery sector

Product-Side Decarbonization Electrification and Energy Mix Optimization and in 2025 the Company's sales revenue from new energy products reached RMB 8.64 billion. Looking ahead we will continue to

increase investment in clean technology R&D upgrade production facilities and expand into new markets continuously improving

the low-carbon ecosystem across the industrial chain providing customers with greener solutions that are more efficient and more

We actively seize opportunities arising from the green and low-carbon transformation focus on product electrification economical and contributing "SANY strength" to advancing the green transformation of the global equipment manufacturing industry.continuously push the boundaries of clean energy technology and establish a comprehensive presence in sectors such as

pure electric hybrid and hydrogen energy. The Company is systematically promoting the electrification of the core equipment In 2025

across main machine products such as construction vehicles excavators loaders and cranes strengthening independent

innovation in core components and exploring the production and utilization of clean energy to deliver high-quality low- The Company's sales revenue from new energy products reached

energy and user-friendly products.RMB8.64billion

R&D Highlights in Low-Carbon Fields

Zero-emission technology

Electric

and Hybrid In 2025 the Company adopted a dual-motor dual-transmission independent redundant design for its powertrain balancing

Technology S ANY Heavy Industry continues to advance electrification In 2025 performance and efficiency and supporting breakthroughs in the new energy dump truck and concrete mixer market. At the

accelerating the electrification of main machine products vehicle platform level the Company advanced modular development to create a platform standardized land parcel achieving

core components and energy replenishment systems Sales reached unified hardware and software interfaces. This reduced the failure rate by 30% and lowered production costs by 5%. In addition

covering a wide range of products including excavators refined design was implemented for low-voltage electrical wiring harnesses reducing in-warranty failure rates by 80% and cutting

loaders pump trucks mixers and cranes. In 2025 sales 13992units related quality losses by 84.5% thereby strongly supporting brand enhancement for products such as dump trucks.of the Company's major products including electric

excavators mixers pump trucks and cranes ranked at the Pollution control technology

forefront of the industry with annual sales reaching 13992 In 2025 the Company carried out a key technological upgrade to the automotive paint exhaust gas pretreatment system replacing the original

units. three-stage bag filtration system with an innovative combined process of "cartridge filtration + bag filtration." This upgrade increased the

overall filtration efficiency to over 97% with the first-stage cartridge filter offering a significantly higher paint-holding capacity compared to

previous materials. Following the upgrade system operating resistance became more stable electricity costs were reduced by approximately

one-third and the service life of downstream filters was effectively extended resulting in lower maintenance frequency. Overall the upgrade

ensured stable compliance with stringent environmental standards while optimizing operating costs and maintenance efficiency.Hybrid technology

In 2025 the Company launched a new-generation 39m intelligent hybrid pump truck. Through six major technological

Hydrogen breakthroughs it established the industry’s first intelligent hybrid technology platform (the Xuanding System) reducing

Energy SANY Heavy Industry has been actively engaged in the hydrogen industry treating it as a energy consumption costs by 54% and redefining industry benchmarks through technological innovation. The product

Technology key field within its decarbonization strategy with a focus on R&D for hydrogen-powered delivers a 66% increase in driving range and a 53% improvement in pumping capacity significantly enhancing operational

vehicles adjusting the energy mix and service model of its products continuously launching capability and efficiency. In terms of reliability it has undergone 2000 hours of uninterrupted extreme testing on a three-

technological achievements with independent intellectual property rights and supporting electric pumping test bench along with dual validation through professional whole-vehicle thermal management chambers

the development of the full industry chain for hydrogen energy. and authoritative EMC testing. From a design perspective the vehicle achieves industry-leading performance in overall length

minimum unfolding height and turning radius improving adaptability in confined working conditions. In addition the product

qualifies for green license plates allowing operation during smog alerts without administrative restrictions offering a unique

road access advantage in the industry and comprehensively optimizing the operating experience.

<2829>01

Building on

Compliance for First-

Class Governance

SANY Heavy Industry upholds integrity across all business

activities as the foundation of the Company adheres

to business ethics and compliance requirements

continuously improves a first-class governance system

centered on risk control and enhanced internal controls

promotes the deep integration of compliance requirements

into operations practices and provides solid safeguards for

sustainable and high-quality development.Corporate Governance

Risk Control

Business EthicsSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Corporate Governance Risk Control

SANY Heavy Industry regards sound corporate governance as a core underpinning for the enterprise's long-term stable operations and SANY Heavy Industry continues to build and improve a comprehensive and highly efficient risk management and internal control system

sustainable development. The Company strictly complies with the Company Law of the People's Republic of China the Securities Law to safeguard the implementation of the Company's strategy and its high-quality development. The Company revised and improved 15

of the People's Republic of China the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on management protocols or guidelines including the Operational Guidelines for Risk Assessment the Operational Guidelines for Internal

Shanghai Stock Exchange the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and other laws Control assessment the Administrative Measures for Rectification Acceptance and the Audit and Supervision Management System

regulations and regulatory requirements; continues to optimize its governance structure; and safeguards the effective performance continuously enhancing capabilities in risk prevention and management and ensuring safe and stable operations.of the functions of the general meeting of shareholders and the Board. The Company carries out information disclosure in accordance

with laws and regulations to ensure transparency and compliance of disclosed information and is committed to building a modern

governance system that is scientific and standardized efficient in operation and clear in powers and responsibilities. Risk Management

Under the Board the Company has established the strategy committee the audit committee the nomination committee and the remuneration

and assessment committee to support professional decision-making and supervision. The Board emphasizes member independence and The Company has established a comprehensive risk management structure composed of the "four lines of defense" under which

diversity taking into comprehensive consideration factors such as industry experience educational background professional competence and business divisions functional headquarters the audit and supervision headquarters and the audit committee perform their

gender to enhance the quality of decisions and breadth of perspectives. Board members possess extensive experience in legal affairs finance responsibilities at different levels and coordinate risk prevention and control fully integrating risk management into corporate

auditing and corporate management providing professional guidance for the Company's strategic planning and operational decisions. In 2025 governance and operational processes. In 2025 the Company established the Risk and Compliance Management Task Force led

the Company's Board comprised 9 directors including 3 independent directors and 1 female director. by a director to formulate risk targets and policies approve response strategies for major risks promote the implementation of

responsibilities and system optimization and enhance the effectiveness of managing overall operational risks.Corporate Governance Structure Risk Management Structure

General Meetings of Shareholders

01 Line of First Defense 02 Line of Second Defense 03 Line of Third Defense 04 Line of Fourth Defense

The Board Business Divisions Functional Departments Audit and Supervision Audit Committee

Headquarters

Operational management Identify business risks Internal control and audit Provide system guidance and

Internal controls Implement risk control oversight

Strategy Committee Nomination Remuneration and Committee assessment Committee Audit Committee

Sustainability measures Evaluate the effectiveness of

Committee internal controls

Corporate Management Levels and Main Functions

Accountable to the general meeting of shareholders and responsible for examining major matters

The Board in the Company's business activities submitting the decisions or submitting them to the general

meeting of shareholders for examination.Senior Executives Senior executives are guided by the Board and take charge of the Company's daily operations and management.The Company has deepened system building for its digitalization-based risk control system and developed a three-dimensional digital audit and

supervision platform centered on "data support intelligent early warning and AI empowerment." This platform can identify risks across multiple

processes including marketing commerce and finance and conduct dynamic oversight of related parties such as suppliers and employees

The Company strictly follows laws and regulations the Articles of Association and the working rules for each specialized committee; thereby enabling more intelligent and refined risk control.standardizes the convening of the general meeting of shareholders the board meeting and the meeting of the board of supervisors;

ensures that the procedures for convening holding and voting at the "three meetings" are lawful and compliant; and effectively To strengthen the company-wide risk management culture the Company established a normalized control mechanism implemented through

safeguards the legitimate rights and interests of the Company and all shareholders especially minority shareholders. monthly regular meetings and ad hoc special training. During the reporting period a total of 33 risk control training sessions were conducted

covering 2046 participants which continuously enhanced employees' risk awareness and risk response capabilities.In 2025 SANY Heavy Industry held During the reporting period

Annual general meeting of shareholders Extraordinary general meetings Board meetings Attendance rate Risk control training sessions conducted Covering

1 5 10 100% 33 2046participants

< 32 33 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Internal Control and Compliance Business Ethics

The Company continues to improve its internal audit system continuing to optimize the global auditing and supervision system

strengthening coordination between supervision and audit departments and systematically advancing internal control management SANY Heavy Industry is honoring its philosophy of compliance operations continuously improving its anti-corruption and integrity

toward a more systematic compliant and digitalization-driven model. framework strengthening business ethics management further promoting anti-money laundering efforts and actively fostering

a culture of integrity. The Company firmly opposes corruption bribery and fraud as well as all unfair competition and requires

Audit and Supervision Headquarters System the same standards of its business partners working together to foster a clean and upright business environment and build a sustainable development business ecosystem.Supervision

Department Construction Vehicle Integrity Management

Business Unit

Cooperation Leads and SANY Heavy Industry strictly complies with the Criminal Law of the People's Republic of China the Anti-Unfair Competition Law of the

Cooperation and Interaction Needs People's Republic of China the Interim Provisions on Prohibiting Commercial Bribery and other applicable laws and regulations. In 2025

and

Interaction Heawy Machinery the Company formulated and optimized internal policies such as the Code of Ethics and Business Conduct for Employees the Conflict of

Audit Business Unit Interest and Integrity Management System the Accountability Management Policy and Red Line List the Blacklist Sharing Management

Department Procedure and the Business Personnel Behavior Management Regulations. By establishing consultation and whistleblowing mechanisms

it systematically standardizes employee conduct identifies potential risks and prevents non-compliant behaviors.Cooperation Leads and

Heavy-Duty Crane The Company has established an anti-corruption supervision system with clearly defined responsibilities. The Board directly leads and Interaction Needs

Business Unit guides and evaluates integrity management. As the dedicated oversight body the audit committee regularly reports to the Chairman on the progress of audit and supervision work and the investigation and handling of cases involving embezzlement and commercial

Supervision Group 1 bribery. The Audit and Supervision Headquarters issues the Monthly Audit and Supervision Briefing on a monthly basis to support decision-making by management employees and safeguard the efficient promoting of integrity management.Supervision Group 2

…………

………… In 2025

the Company organized all directors employees in Signing the Letter with A signing rate of

The Company has established an internal control framework centered on the "1+8+N" system framework systematically revised pivotal roles commercial staff and mid-level managers

15 core management protocols including the Internal Control assessment Management Process and the Operational Guidelines in the Manufacturing Department to sign Integrity and 3446persons 100%

for Internal Control assessment and achieved end-to-end coverage of key processes such as risk assessments plan management Anti-Corruption Commitment Letter

and quality control. Centered on "prevention inspection and assessment" we have established three lines of defense consisting

of business divisions the internal control team and audit and supervision and applied three major tools—compliance testing

special inspections and annual assessment—to build a four-dimensional assessment system covering whether processes have been Integrity Management Structure and Responsibilities

established whether personnel have mastered them whether processes are strictly executed and whether processes are continuing

to optimize thereby continually enhancing systematic management improvement.Management Structure Functions

The Company has established routine monitoring and audit mechanisms. In 2025 it completed internal control assessment testing As the first person responsible for conflict of interest management and personal integrity within the unit

covering the commerce finance and marketing systems while also promoting the establishment of internal control and compliance Primary responsibility this role is required to promptly disclose any conflict of interest in accordance with relevant provisions.departments within overseas business management finance and the business headquarters to perform day-to-day supervision

functions. Risk management performance is incorporated into the performance assessment system and accountability for violations is Audit and Supervision Responsible for organizing the communication and disclosure of conflict of interest and integrity-related

Accountability Management Policy Headquarters systems and for acceptance and handling of consultations whistleblowing reports investigations and enforced in accordance with the . other matters related to non-compliant behaviors.In addition the Company carried out a series of training sessions focused on core areas such as internal control compliance and strategic May authorize designated personnel to be responsible for the acceptance and handling of the execution of

procurement strengthening employees' compliance awareness and risk management capabilities consolidating the foundation for compliant Unit heads accountability for conflict of interest and integrity-related matters within their unit and for receiving gifts or

operations and continually enhancing employees' capabilities in internal control execution compliance awareness and risk management. monetary items returned by employees carrying out registration and filing in accordance with regulations

and subsequent handling.Business Headquarters and the Responsible for the communication organization and inspection of supplier conflict of interest

commercial departments of declarations ensuring the effective implementation of relevant results and accepting supervision and

business units inspection by the Audit and Supervision Headquarters.Chairman's Office Responsible for supervising the conflict of interest management of the Audit and Supervision Headquarters and coordinating the receipt and management of gifts or monetary items.Human Resources Headquarters / Responsible for assisting the Audit and Supervision Headquarters and the Board Office in carrying out

HR departments of business units work related to conflict of interest disclosure and participating in the organization and implementation of policy publicity and communication activities.

<3435>

Global Audit and Supervision

HeadquartersSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Integrated Anti-Fraud System of Punishment Governance and Prevention

The Company continues building anti-fraud systems and promoting work centered on the integrated approach of "punishment

governance and prevention" fully implementing integrity management and risk control to achieve full-chain management from Integrity Management Measures

education and process supervision to strict accountability.In 2025

End-To-End Anti-Corruption Audit Mechanism Whistleblowing reports and With a resolution Anti-corruption audits achieved full coverage of

complaints handled rate of core business processes with a coverage rate of

With "data penetration" as its core principle the company leverages its intelligent audit and supervision platform to establish a

normalized anti-corruption audit mechanism spanning the full lifecycle of "pre-event in-event and post-event" stages driving 95 100% 100%

the transformation of audit practices from traditional experience-driven approaches to data intelligence-driven models. Audit and

supervision operations have been fully migrated online with intelligent tools such as audit subject profiling and indicator-based early

warning models combined with preventive education real-time monitoring and investigative enforcement systematically ensuring

comprehensive audit coverage. A data-driven approach audit findings Creating economic value of

identified throughout the year reached

Management Measures System 2208 RMB 146million

Anti-Corruption Management Mechanism

Pre-event Publicity and During-event Monitoring and Post-event Accountability and Integrity Management for Stakeholders

Prevention Governance Punishment

The Company adheres to pre- The Company has established multidimensional Through mechanisms such as

incident prevention and strengthens supervision mechanisms including digital model investigating major cases circulating The Company attaches great importance to business ethics risks involving partners and related parties in the global supply chain and

the ideological defense line of all supervision a reporting and complaint mechanism case notifications sharing a has formulated and updated the Supplier Management System the Procurement Framework Agreement the Supplier Contact and

employees through initiatives such a senior management supervision and assessment blacklist tracking former employees Visit Management Rules and other management protocols to ensure that all stages of the supply chain comply with local regulations

as tiered and categorized integrity mechanism a business compliance check business and ensuring that every report is and standards in places where it operates and to regulate the conduct of suppliers.education compliance exams management decision-making supervision supplier investigated the Company strengthens

reminders before holidays the signing management a gift and cash declaration mechanism the deterrent effect of accountability. Through initiatives such as organizing supplier integrity training signing integrity cooperation commitment letters and issuing holiday

of commitment letters and on-site and conflict of interest disclosure mechanisms in integrity initiatives the Company continuously communicates integrity requirements to partners. In 2025 the Company launched the

warning education sessions. order to strengthen risk management capabilities business ethics certification module in the CRM and GSP systems requiring suppliers to obtain a 2-year certification before signing

during amid-incident monitoring. contracts thereby achieving systematic coverage of integrity management. At the same time it carried out integrity communications

for internal procurement personnel prohibiting the acceptance of entertainment or gifts and strictly enforcing the handling and

notification of violations.Audit Tool Intelligence

The Company has continued to promote the transformation of its intelligent audit and supervision system by building an integrated

data analysis and monitoring platform thereby advancing its audit model from experience-driven to data-driven. The Company has In 2025

systematically established a multidimensional risk warnings and supervision framework covering "points lines planes and entities"

achieving end-to-end closed-loop management from risk identifications and dynamic monitoring to assessment and decision-making The signing rate of supplier integrity cooperation agreements and commitment letters reached

and strengthening the preventive and control capabilities of its audit and review efforts. 100%

Penetrative Audit Execution

The intelligent audit and supervision platform continuously builds and dynamically monitors profiles of over 600000 suppliers agents

customers and employees significantly enhancing audit penetration. In 2025 the platform automatically generated and closed out 63

high-risk action items achieving 100% coverage of anti-corruption and business ethics audits. This has progressively strengthened the

governance cycle of "monitoring — early warning — disposal— education" driving audit oversight to penetrate with greater depth and

precision.< 36 37 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Supplier Integrity Management System Whistleblowing Process

Report Intake Registration &

Supplier Management System Set access requirements of dishonest operations for suppliers. Assignment

Triage & Classification Feedback Acceptance

Conclusion Review & Feedback Recommendation for Whistleblower Incentives Conclusion Review & Feedback

R equire all suppliers and distributors to sign integrity cooperation agreements.Procurement Framework Agreement Complete the Conflict of Interest and External Investment Declaration Form in the

procurement system.Integrity Culture Development

Establish reporting channels via telephone and WeChat as well as a callback

mechanism to enable real-time response to issue feedback. The Company deeply embeds integrity management throughout its operations promotes a culture of integrity through diversified

Administrative Measures for channels and continuously enhances all employees' awareness of anti-corruption. We regularly conduct code of conduct training

Supplier Contact / Visits Provide immediate notification of non-compliant behaviors and strengthen communication of integrity policies. covering all formal employees and carry out dedicated conflict of interest disclosure for board members and key position holders

clearly defining "comprehensive risk coverage proactive disclosure conflict recusal and zero tolerance" as the core principles Verify and investigate matters involving suspected breaches of contract by suppliers. to ensure timely and comprehensive disclosure. In addition at key times such as holidays we continue to strengthen warning

communications through multiple channels including pushing warning messages and publishing articles on the official account

and regularly publish typical fraud investigation cases to reinforce employees' behavioral boundaries through normalized warning

education sessions. In 2025 the coverage rate of business ethics training for formal employees reached 100%.Petition and Whistleblowing Management

SANY Heavy Industry strictly complies with relevant national disciplinary inspection and supervision regulations and has formulated Case? ? Jointly Conducting Business Ethics Seminar with the Judicial System

and implemented internal management protocols such as the Whistleblowing and Complaint Management System and the

Whistleblowing Management Process to systematically manage the acceptance and handling process for whistleblowing reports.Whistleblowers may report issues through multiple channels and the Company promptly organizes and archives whistleblowing In 2025 SANY Heavy Industry together with national judicial administrative authorities organized special lectures on

information establishes ledgers for issue clues and conducts regular analysis and assessment to ensure that each report is handled in explaining the law through cases in Shenyang Huzhou Shanghai Xi'an and Changsha. Through analysis of typical cases

a timely and impartial manner. and explanations of judicial practice the company enhanced employees' awareness of anti-fraud and legal literacy

fostering a regulated and orderly corporate environment.SANY Heavy Industry Whistleblowing Channels

Email: jiancha@sany.com.cn QQ: 2592689550

Official website: integrity reporting_about SANY_SANY Group Reception room: Room 306 Complex Building of Changsha

Quality Changes the World Industrial Park/audit & supervision office

WeChat: Integrity SANY Official Account the chairman's Mail: Audit and supervision headquarters SANY Industrial

mailbox Park Xingsha Economic & Technological Development District

Changsha Hunan Province China 410100

Telephone: 0731-84031222 85835000

Feishu: Workbench/Integrity SANY

The Company strictly implements the Whistleblowing and Complaint Management System maintains full-process confidentiality

of whistleblowers' information and report contents and fully enforces the principle of recusal in information processing and

investigation procedures to prevent conflicts of interest from interfering with procedural fairness. For acts such as illegally obtaining

or disseminating information or discriminating against threatening or retaliating against whistleblowers the Company will seriously

pursue accountability in accordance with the system and establish a one-to-one special protection mechanism. When necessary it will

work with judicial authorities to pursue legal responsibility so as to effectively safeguard the rights and interests of whistleblowers and Training Site

uphold the credibility and security of whistleblowing channels.< 38 39 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Anti-Unfair Competition Anti-Money Laundering

To foster a fair and orderly market environment the Company has formulated dedicated internal management regulations and The Company attaches great importance to anti-money laundering efforts and strictly complies with the Anti-Money Laundering Law of

strictly implements the principle of "no boasting no smearing" prohibiting all forms of unfair competition. At the same time it has the People's Republic of China and other relevant national regulations. In 2025 it formulated and refined a series of policies including

established a whole-process management mechanism covering training inspections assessment and disposal to strengthen internal the Anti-Money Laundering Internal Control System and the Anti-Money Laundering assessment Measures.controls. All employees are required to uphold the principles of honesty and good faith in business activities and shall not engage

in exaggerated publicity defame others or spread false information. They are expected to consciously resist unfair competition and The Company has established a sound functional framework for its anti-money laundering system. Powered by advanced technologies

safeguard a healthy and civilized industry ecosystem. In 2025 the Company was not involved in any litigation or subject to any major it provides end-to-end coverage of key business scenarios such as customer identification money laundering risk rating suspicious

administrative penalties arising from unfair competition. transaction monitoring and reporting dynamic blacklist updates and maintenance and institutional money laundering risk self-

assessment effectively addressing the challenges of anti-money laundering efforts.Anti-Unfair Competition Management Measures

Anti-Money Laundering Internal Control System

Compliance Management Financial Management

Employment contracts explicitly stipulate employee obligations regarding anti-unfair competition; The Company has designated the Legal & Compliance Department to take the lead in anti-money laundering efforts and

requires each department to appoint one anti-money laundering commissioner to collaboratively promote the implementation Conflict of interest disclosure requires employees to disclose their non-compete status and confidentiality of relevant management tasks.agreement status so as to avoid related disputes.T he Company continues to improve anti-money laundering-related processes and systems clearly defining anti-money

laundering obligations and the functions of each department standardizing the suspicious transaction reporting mechanism

optimizing the money laundering risk assessment process and ensuring the orderly advancement of anti-money laundering

Training Management efforts.The Company has put an anti-money laundering information system into operation which automatically identifies and assesses

Anti-unfair competition training is provided to new employees and the Company organizes an exam; only those customer money laundering risks based on information such as watchlists customer identity financial product type and

who pass may proceed before onboarding; transaction amount and transmits the results to business systems through system integration.A t least one company-wide anti-unfair competition training session is held annually for all employees.Issue Early Warning

Financial Monitoring

Market research is conducted on an ad hoc basis to collect various issues and non-compliant behaviors reported

by customers and industry peers; For large-amount transfers the Company systematically reviews the source of funds and the destination of funds to ensure

T he Company organizes marketing teams and agents to conduct self-inspections at least once every six months that the entire transaction process complies with legal and regulatory requirements and adopts effective measures to

and to promptly report and address any identified issues and implement corrective actions for issues identified prevent and eliminate the occurrence of various illegal financial activities.during self-inspections. T he system integrates the Customer Relationship Management (CRM) system and the GSP platform to strengthen the credit

management of customers and suppliers and strictly controls cooperation access and transaction processes to enhance risk

management.Violation Assessment

The Company has established a normalized assessment mechanism for employee conduct closely linking anti- To continuously improve its anti-money laundering management standards the Company has strengthened internal audit oversight

unfair competition violations to monthly performance assessments. conducted annual anti-money laundering audits promoted compliance-oriented revisions to policies enabled the linkage between

risk ratings and business systems and optimized the updating and screening processes for watchlists using audits to drive rectification

and improve the management system. Meanwhile the Company irregularly invites external experts to conduct anti-money laundering

communication and training sessions to enhance employees' compliance awareness. For high-risk positions such as directors

supervisors and senior management the Company organizes special training on a quarterly basis to strengthen their role-based

compliance capabilities in anti-money laundering.

<4041>02

Driving Technological

Innovation to Deliver

First-Class Products

SANY Heavy Industry regards technological innovation

as the core engine driving development and by closely

focusing on the strategies of globalization digitalization

and decarbonization uses innovation to lead products

and industrial upgrading. The Company strengthens its

global R&D system and establishes systematic research

management talent incentive and intellectual property

rights protection mechanisms to provide a solid safeguard

for technological innovation. At the same time we have built

a quality and service system covering the full life cycle of

products and the entire customer processes integrated the

philosophy of sustainability throughout the supply chain and

operations and are committed to providing customers with

safe reliable intelligent first-class products and services.Innovation-Driven Development

Superior Quality

Sustainable Supply ChainSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Innovation-Driven Development

Highlights

The Company aligns with the direction of three core strategies deeply integrates green technology and digital intelligence and

fosters an open and collaborative innovation ecosystem. By continuously strengthening the global R&D system building talent In 2025

teams and intellectual property management we continue promoting technological breakthroughs and product innovation to

meet the demand in the global market with more competitive green and intelligent solutions.R&D investment Accounting for the Company's Number of R&D Accounting for the Company's

reached main business revenue personnel total employees

Research Management

RMB5.169billion 5.79% 5720 20.09%

The Company has formulated and continuously improved the R&D Project Input-Output Management Measures and the R&D Planning

and Management Guidelines to manage R&D activities in a normalized way. The Company has established a clear three-tier R&D

management organizational structure comprising the R&D Technical Committee the seven technical committees and the specialized Furthermore the Company has formulated and implemented the Project Manager System for R&D Projects encouraging R&D personnel

technical subcommittees with clearly defined functions and division of responsibilities and safeguards the quality of R&D projects to participate in training and certification programs for project management enhancing the professionalism of project management and

and the implementation of strategy through efficient coordination and oversight mechanisms. improving the professional competence and comprehensive capabilities of the R&D team across multiple dimensions through training for

directors of research institutes R&D project manager training and various special-topic training programs on professional knowledge.Research Collaboration and Exchange

R&D Management Organizational Structure

The Company actively builds an open and collaborative R&D ecosystem and continuously expands its technological horizons and pools

L ed by the Chairman it is responsible for formulating the Company's R&D strategy and innovation resources through external cooperation. The Company has established strategic cooperation relationships with well-known

R&D Technical technology development roadmap to ensure alignment with the Company's overall strategy; domestic universities and research institutes such as Dalian University of Technology to jointly conduct research on frontier technologies.Committee Coordinated the specialized technical subcommittees and makes decisions on major

technical proposals. In 2025

Composed of technical experts from seven core fields including mechanical control The Company participated in and organized Reached new cooperation Seven Technical

Committees hydraulic and testing they are organized by professional field and are responsible for

important technical exchanges intentions with

guiding and examining major technical directions in their respective fields. 12 6 external institutions

E stablished specialized technical subcommittees under each technical committee they are

Specialized responsible for researching and resolving specific professional technical issues; Case? ? In-House Development and Case? ? Technical Exchange

Technical

R esponsible for formulating the technology development roadmap technical standards and Upgrade of a 3D Engine for with Dalian University Subcommittees

operational procedures for their respective specialties; Lifting Planning of Technology

Responsible for advancing the implementation of new products and technologies and

organizing technical exchanges to promote knowledge sharing and collaboration.To enhance the safety precision and efficiency of lifting In August 2025 a company technical

operations SANY Heavy Industry independently developed a 3D delegation visited Dalian University of

lifting planning engine based on the Unity platform achieving Technology where both parties engaged

comprehensive breakthroughs in model coverage functional in in-depth technical exchanges covering

integration and system performance. The engine added support emerging technologies processes materials

To fully stimulate innovation vitality the Company has formulated the Implementation Rules for the Incentive Policy on R&D Projects for 24 wheeled and crawler crane models strengthened 8 core and equipment. The visit resulted in over

and established a functional evaluation and incentive system centered on positions and capabilities. The Company has set up project capabilities including multi-user collaboration CAD interaction ten cooperation intentions with a shared

process awards standout project awards and project incremental profit awards covering the entire project life cycle with rewards and virtual reality and iteratively optimized 7 existing features. commitment to building a full-chain

granted based on project classification and innovation outcomes among other factors. It has also established special upward The upgraded system reduces interaction latency achieves a collaborative ecosystem spanning from

adjustment incentive mechanisms for electrification digitalization and market hits. 100% accuracy rate in working condition logic verification and core technology breakthroughs to product

supports multi-format engineering file imports and 4K-level competitiveness enhancement.visualization rendering. These advancements not only improve

internal design efficiency but also lay a technical foundation for

delivering digital lifting solutions to customers.< 44 45 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Intellectual Property Rights Superior Quality

SANY Heavy Industry regards intellectual property as an important component of technological development strictly complies with national

laws and regulations such as the Patent Law of the People's Republic of China the Trademark Law of the People's Republic of China and SANY Heavy Industry regards quality and safety as the foundation of development and is committed to providing customers with

the Enterprise Intellectual Property Management Standards and has established internal systems such as the R&D Patent Management reliable products. Through digital tools and systematic processes the Company upgrades product quality strengthens supply

Measures the Trademark Management System the IT Software Copyright Management Policy and the Technical Secrets Management chain and process control optimizes the service experience and builds a data protection network comprehensively pursuing

Policy. The Company has established an intellectual property special group responsible for the establishment of rights protection and superior quality with unwavering commitment.application of intellectual property thereby effectively safeguarding innovation achievements and preventing infringement risks.In 2025 the Company continued promoting whole-process management of intellectual property rights and implemented improvement

measures in multiple areas including review mechanisms brand and trademark protection industry seminars and employee training. Quality Management

Annual Highlight Measures for Intellectual Property Protection

Review and Early-Warning Mechanisms The Company strictly complies with the Product Quality Law of the People's Republic of China and other national laws and regulations

as well as relevant corporate standards has formulated internal systems such as the Technical Notification Management System and

has established a digital quality management system covering the entire process of R&D manufacturing supply chain and after-sales.Each research institute is staffed with patent engineers who proactively conduct patent screening before new products are

launched and before participating in overseas exhibitions to avoid potential infringement risks.Brand and Trademark Protection By the end of the reporting period

T he Company conducts routine monitoring of core trademarks such as "SANY" and regularly files objections against similar

trademarks to maintain the uniqueness and distinctiveness of well-known trademarks. The number of subsidiaries of SANY Heavy Industry certified With a coverage

In response to market behaviors such as passing off on established brands and disparaging commercial reputation the by ISO 9001 quality management system had reached rate of

Company actively safeguards its rights through civil infringement litigation.For serious infringements such as the production and sales of counterfeit and substandard parts the Company resolutely 22 100%

adopts criminal enforcement measures to create an effective deterrent.Industry Exchanges and Seminars Employee Training and Development

Quality Management System of SANY Heavy Industry

The Company participated in seminars on revisions to the Trademark Law The Company organized compliance training

organized by the China National Intellectual Property Administration and on software management and use as well Quality Management System

special seminars organized by the Administration for Market Regulation as specialized training on the protection of

of Hunan Province discussing the issues including trade secret protection intellectual property rights for parts in order to

and cross-provincial coordinated law enforcement. enhance employees' compliance awareness

The Company participated in the working meeting of the State Administration and risk prevention capabilities in relation to

for Market Regulation on combating counterfeiting and infringement and intellectual property.Manufacturing After-sales

Quality Objectives Quality Resources and Performance R&D quality Quality Quality Supplier Quality

further deepened trademark protection efforts. Management Management Management Management Management Management

Highlights

Planning Objectives Quality Methods Quality Issues in R&D Quality After-sales Supplier Quality Management Measurement and Quality Problems Management Before

In 2025 Inspection Plan Management Mass Production

Review Management Quality Accreditation

Number of domestic Number of granted Number of international Authorizations Implementation Management and Production Supplier Quality

patent applications filed patents patent applications filed overseas Management Implementation Process Quality Management During

Management Mass Production

596 820 23 47 Quality Cost R&D Implementation Management Quality Management Finished Product Supplier Quality

Quality Examination Quality Management and Performance

Computer software Number of patents applied to the Company's Management Quality Anomaly Management

copyrights obtained core business operations

Quality Management

68 8660 Improvement

< 46 47 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

SANY Heavy Industry Quality Management Content Customer Service and Privacy Protection

R&D Quality Manufacturing Quality

SANY Heavy Industry complies with the Law of the People's Republic of China on the Protection of the Rights and Interests of

Consumers the Advertising Law of the People's Republic of China and other relevant laws and regulations and has formulated For the product R&D process controls are applied to the Quality control in the manufacturing process includes internal systems such as the Marketing Contract Management Policy and the Customer Complaint Handling Process to standardize all

output of key product characteristics special characteris- management activities such as disqualification business processes and complaint handling standards.tics QC control charts and testing benchmarks while improvement regular inspection patrol inspection

monitoring initial item inspection and trial production and self-made pieces of primitive objects. In 2025 the Company upgraded its key account management risk control and service system and improved service efficiency and

testing and managing the avoidance of design risk zones intelligent capabilities through digitalization transformation across the entire process. Furthermore the Company continued to

quality gate reviews and closed-loop management of strengthen team capabilities and deepen customer relationships through training and multi-channel customer communication. During

problem points. the reporting period the Company's customer satisfaction surveys score was 93.0 points. A total of 1052 customer complaints were

received of which 1035 were processed and the complaint handling satisfaction rate was 84.1%.Supplier Quality After-Sales Quality The Company has established a data compliance management structure guided by the board of directors and formulated internal

systems such as the Data Security Management Policy clarifying management requirements for domestic and overseas data across

For supplier management and their material manage- For fault messages reported by users quality problem all stages. In 2025 the Company signed cross-border data agreements with 21 overseas subsidiaries and conducted 100% compliance

ment for suppliers this includes aspects such as quality analysis is conducted including liability judgment checks during the project initiation and launch stages of IT systems.agreements initial procurement components incoming supplier claims internal component quality problem

material inspection supplier monitoring and initial mass management and closed-loop tracking for quality

production flow. improvement. Data Compliance Management Structure

In 2025 the Company's digital quality information system covered all 113 domestic factories. Through tools such as quality boards at As the highest decision-making body the board of directors fulfill decision-making and supervisory

workstations and the quality control map it comprehensively identified quality issues and ensured accountability was implemented Board of responsibilities and are responsible for approving systems and supervising the execution of strategic

forming closed-loop management. In accordance with the Accountability Management System for Major Quality Defects the Company Directors projects.established an emergency response mechanism to ensure that after an incident occurs relevant departments can initiate a response

within 24 hours and complete corrective actions. In 2025 the Company had no major product safety incidents or product recall events.In 2025 Data As the management level the Data compliance subcommittee was established under the leadership of the

compliance Process Digitalization Headquarters and Huaxia Fangyuan Law Firm jointly with functional departments.subcommi- Coordinate data compliance work as a whole formulate data compliance systems and procedures and

The Company had ttee supervise and inspect the compliance situation of execution.nomajor product safety incidents or product recall events

Data

compliance A s the execution level it translates the Subcommittee's decisions into specific actions and coordinates

execution advances and tracks the compliance work of each execution department.Quality Control Map team

Quality Boards at Quality Control Need-to-Know Quality Boards at On the data protection front the Company completed disaster recovery for 26 application systems and data backup for 804 applications Workstations Map Production Lines while enabling secure intranet data access through desktop cloud and data sandbox technologies. In terms of customer privacy protection

the Company formulated the Customer Privacy Policy signed the Information Security and Confidentiality Agreement with partners and

Main Content Main Content Main Content Main Content conducted regular reviews and incorporated privacy protection into compliance training for all employees.Work Procedures Critical risks at K nowledge Ouality Trend at

Key qualitycontrol quality control learning and skills production lines

points at workstations points training P roduction

Historical failures at O uality Risks at E xams line personnel In 2025

workstations workstations Data Statistics information

Safety hazard points Risks Associated The Company obtained Number of core systems completed Number of data security

Q uality Trend at with Need-to-Know knowledge and ISO 27001 certification for

cybersecurity graded protection incidents or customer privacy

workstations assessment certification leakage incidents occurredskills its information security

management system 9 0

< 48 49 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Sustainable Supply Chain

Statistics on the Number of Suppliers in 20253

SANY Heavy Industry is committed to building a stable efficient and sustainable supply chain system. We continue to refine

management protocols covering full lifecycle of supplier management. Through rigorous admission assessment and dynamic tiered Indicators Data

management and by leveraging digitalization systems to strengthen risk control we safeguard the resilience and competitiveness of

the supply chain. Meanwhile we comprehensively integrate ESG requirements into supplier management and work with partners to Total number of suppliers 5875

advance sustainable development building a responsible resilient and collaboratively innovative global supply chain ecosystem.Chinese Mainland 5838

Supply Chain Management Number of suppliers by region Hong Kong Macao and Taiwan of China 4

Overseas 33

The Company strictly complies with the Bidding Law of the People's Republic of China and other laws and regulations continuously

revises the Supplier Management System and other internal systems improves the processes for supplier admission assessment and Number of production suppliers (procurement of raw and auxiliary materials) 2679

supplier exit and has introduced new requirements such as time-bound management for exiting suppliers thereby systematically Number of suppliers by procurement category

optimizing full lifecycle management of suppliers. Number of non-production suppliers (project procurement) 3196

Supplier Full Lifecycle Management of SANY Heavy Industry Number of suppliers of general products 1280

Production suppliers by category4

Number of suppliers of specialized products 1979

Admiss ion Assess ment Exit

Number of suppliers certified to management systems 1597

—Number of production suppliers certified to ISO 14001 Environmental Management System 1438

Verify suppliers' basic information Implement tiered management T he Company adopts a zero- —Number of production suppliers certified to ISO 9001 Quality Management System 1591

such as business licenses and and classify suppliers as strategic tolerance policy toward legal

upon approval include them in preferred alternative actively disputes non-compliant

the registered supplier database; exiting or passively exiting based qualifications dishonesty and

on rating results; similar issues and takes measures Supplier Risk Identification

Based on business to terminate relationships with

management information C onduct performance evaluation non-compliant suppliers; To safeguard the resilience and sustainable development of the supply chain SANY Heavy Industry has established a mechanism for

quality management R&D and across dimensions such as supplier risk identification and management and prepared the Supplier External Risk Control Plan to achieve closed-loop management

processes in the Supplier Detailed quality delivery costs service For suppliers to be eliminated throughout the full process of risk classification identification disposal and investigation. In 2025 the Company completed a

Information Registration Form and carbon emissions and those that failed to complete comprehensive risk review of existing suppliers and based on the evaluation results eliminated 58 high-risk suppliers thereby

generate admission profiles and launch ad hoc inspections for corrective actions and meet reducing compliance and operations risks at the source.upon approval place them in the exceptional circumstances; standards within 6 months and

potential supplier database; suppliers with unqualified quality

In 2025 the Company conducted supplier exit management shall

Conduct development and inspections of 292 suppliers and be implemented.certification reviews by category eliminated 39.and upon approval place them in Elimination deadlines are

the temporary supplier database clearly defined: "actively exiting"

or certified supplier database. is limited to 3 months and

"passively exiting" is limited to 2

years.In 2025 the Company eliminated

a total of 458 suppliers.The Company continues promoting the digital and intelligent transformation of the supply chain. The global procurement platform (iGSP)

independently developed by the Company has covered 27 countries and regions enabling transparent and standardized operations

throughout the entire procurement process. Through the platform's intelligent functions operational efficiency has been significantly improved 3 The 2025 supplier data statistics include internally assisted suppliers but exclude suppliers that were phased out or moved to the blacklist by the end of 2025.significantly shortening the time for supplier information review contract signing and delivery cycles. Meanwhile the platform's intelligent 4 The number of production suppliers for each category may overlap so the total number of production suppliers is not equal to the sum of production suppliers

customer service operational capabilities continue to strengthen knowledge bases are continuously enriched and in 2025 it cumulatively broken down by category.provided 43825 online question-and-answer services with an automatic problem-solving rate of 74.71%.< 50 51 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Supplier Risk Identification Process Supplier Communication

SANY Heavy Industry deepens exchanges and communication with suppliers through various approaches including establishing the Risk During the admission stage comprehensive risk assessments of businesses are conducted to classify suppliers into four

Classification "Supplier Alliance" platform technical exchange meetings and regular training. In 2025 the Company conducted a satisfaction survey levels from L1 (no risk) to L4 (high risk). among important production suppliers with a score of 4.351 representing an increase of 0.115 points over the previous year. At the

same time the Company continued promoting technical collaboration support and executive-level exchanges centered on supplier

reviews and support thereby systematically enhancing the overall capabilities of the supply chain. In 2025 the Company provided

specialized support and capability enhancement for a cumulative number of 190 suppliers.Identification Annual external risk identification is carried out for all production suppliers and non-production suppliers with signed

Plan contracts.Case? ? The Tech Lecture Series: Conducting a Frontier Hydraulic Technology Exchange with

Bosch Rexroth

Disposal R isk information will be automatically pushed to the responsible person who will verify make decisions and update

Plan the risk status indicators. On March 14 2025 the Company invited Bosch Rexroth to host a dedicated technical exchange session at the Xingsha

Industrial Park. Experts from Bosch Rexroth focused on innovative solutions integrating hydraulic transmission electric drive

and intelligent control technologies and shared pathways for enhancing efficiency through automation and digitalization.The exchange provided valuable insights for collaborative innovation in forward-looking technologies supporting the

Reduced

Burden Through advancement of products toward greater intelligence and sustainability.Repeated Risk identification results are reviewed regularly and for duplicate risks that have already been identified the review

Review process may be streamlined.Screening

Equal Treatment to SMEs

ESG Management of Supply Chain

Adhering to the principles of "Justice Fairness and Openness" SANY Heavy Industry is committed to fostering a non-discriminatory

The Company has deeply integrated ESG requirements into supply chain management and through rigorous review risk identification competitive environment for all suppliers including small and medium-sized enterprises (SMEs). The Company has formulated the

and collaborative improvement guides and empowers partners to enhance sustainability performance. Non-Production Procurement Management Policy and uses the iGSP platform to publicly release tender and bidding information to

the society ensuring equal opportunities for small and medium-sized enterprises (SMEs) to win bids. In 2025 the Company publicly

Supplier ESG Management Measures released 6633 non-production procurement projects on the iGSP platform. At the same time the Company strictly performs contracts

and makes timely payments with no malicious arrears of payments owed to SME suppliers.Environmental During the review process environmental management system certification (such as ISO 14001)

environmental impact assessment acceptance reports emission permits and other items are included

within the assessment scope;

The Company pays close attention to suppliers' carbon reduction actions encourages suppliers to set

carbon emission reduction targets adopt energy conservation emissions reduction measures and

promote green procurement;

I n supplier cooperation we actively advocate and explore recyclable logistics packaging models and are

committed to working with suppliers to reduce resource consumption and packaging waste.Human Rights During the review process talent development plans employee satisfaction surveys and employee

safety and health are included within the assessment scope;

The Company pays close attention to the human rights of suppliers' employees and examines whether

suppliers have issues such as forced labor child labor employment and employment discrimination.Quality Quality Management System certifications (such as ISO 9001 certification and TL 9000/IATF 16949

certification) are included within the scope of supplier assessment.Business Ethics T he Company has launched a supplier business ethics certification module on the global procurement

platform (iGSP) requiring all suppliers to complete relevant anti-corruption training and an online exam

thereby strengthening the development of an honest supply chain at the source.

<5253>03

Exploring Low-Carbon

Pathways for First-

Class Practice

SANY Heavy Industry integrates "green and low-carbon" into

the DNA of its operations and actively explores new pathways

for sustainable development. We have established systematic

environmental management energy management and

ecological protection systems to achieve excellent operations

across multiple dimensions including climate change

response reducing environmental impact and improving

resource efficiency thereby using first-class environmental

performance to drive harmonious coexistence among the

enterprise society and nature.Climate Change Response

Environmental Management

Ecological Protection

Green DevelopmentSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Climate Change Response To systematically promote climate governance SANY Heavy Industry has established a three-tier governance and execution system composed of the Board of Directors the Sustainability Committee and the Sustainable Development Working Group supported by

regular meeting and reporting mechanisms to ensure the effective formulation and implementation of climate strategies.The Company attaches importance to the management team's sustainability management and capacity building for climate change

Climate change is a systemic challenge faced globally. As a leading global equipment manufacturer SANY Heavy Industry fully response and invites external climate experts to provide special training for the Board of Directors the Sustainability Committee

recognizes its responsibilities and opportunities in advancing the green transformation of the industry. The Company strictly and the Sustainable Development Working Group deepening members' understanding and application of mainstream international

follows Part D of the ESG Reporting Guide: climate-related disclosure framework and with reference to standards such as the climate frameworks risk identifications and carbon management tools thereby systematically strengthening the Company's strategic

International Sustainability Standards Board (ISSB)'s IFRS Sustainability Disclosure Standard 2—Climate-Related Disclosures (IFRS decision-making and risk management capabilities in relation to climate-related matters.S2) systematically identifies evaluates and manages climate-related risks and opportunities.Climate Change Strategy

Climate Change Governance To systematically address the challenges of climate change SANY Heavy Industry has established a comprehensive climate risk and

opportunity management system. Based on internationally recognized frameworks the Company identifies short- medium- and

long-term risks through scenario analysis and deeply integrates climate factors into the Company's strategy and operations. We are

SANY Heavy Industry places great importance on climate change and has established and continuously improved a three-tier governance committed to enhancing overall climate resilience and proactively transforming the systemic pressures of low-carbon transformation

structure comprising the governance management and execution levels deeply integrating the governance of climate change response into sustained competitive advantages in green technology products and markets.into the Company's overall sustainability management structure to ensure that climate-related issues receive adequate oversight.Climate Governance Responsibilities and Working Mechanism of SANY Heavy Industry Climate Scenario Selection

To systematically identify and evaluate the potential risks and opportunities brought about by climate change SANY Heavy Industry

conducted forward-looking scenario analysis with reference to climate scenarios published by internationally authoritative institutions.Assumes ultimate responsibility for climate change management and is responsible The Company selected the Shared Socioeconomic Pathways (SSP) scenarios of the Intergovernmental Panel on Climate Change

for approving the Company's climate-related strategy medium- and long-term (IPCC) and the energy transition scenarios of the International Energy Agency (IEA) to simulate the possible impacts on the Company's

targets and low-carbon transformation pathway; operations under different climate policy and warming pathways from the two dimensions of physical risk and transition risk thereby

Oversees the integration of climate performance indicators into senior management enhancing strategic resilience and providing a basis for long-term decision-making.Governance Board of Directors compensation assessment;

level Reviews and approves climate-related financial disclosures reports and other

public disclosure documents;

Climate Scenario Selection

Holds at least one special meeting on climate change each year.Climate Selected

Scenario Type Scenarios Scenario Description Key Scenario Assumptions

Responsible for formulating climate action strategies and annual targets and for Low-emissions scenario: globally development follows a

identifying and evaluating climate-related risks and opportunities; The SSP series scenarios are a set of sustainable development pathway with coordinated and

Guides the formulation of relevant policies on emission reduction and energy SSP1-2.6 hypothetical scenarios proposed by the robust climate action to achieve rapid emission reduction

Management Sustainability Committee management; Intergovernmental Panel on Climate Change and low-carbon transformation limiting the temperature

level Oversees progress towards carbon neutrality targets and promotes the application (IPCC) for evaluating possible future pathways increase to within 1.5℃ .of mechanisms such as internal carbon pricing; Physical of GHG emissions and climate change. Among

scenario them SSP refers to Shared Socioeconomic

Convenes one meeting each quarter and reports to the Board of Directors. Pathways 2.6 indicates that radiative forcing High-emissions scenario: global development relies on fossil

stabilizes at 2.6 W/m2 by 2100 and 8.5 fuels GHG emissions continue to grow rapidly and climate

SSP5-8.5 indicates that radiative forcing stabilizes at policies remain relatively weak resulting in a possible global

approximately 8.5 W/m2 by 2100. temperature increase of more than 4℃ by the end of this

century.Supports the Board of Directors and the Sustainability Committee in implementing

climate actions and is responsible for the day-to-day coordination and implementation

of climate-related matters; Stated Policies Scenario: nations implement only

Sustainable Development Prepares for relevant committee meetings and implements their resolutions; STEPS NZE (Net Zero Emissions) and STEPS announced climate change and energy policies without Execution Working Group Tracks and consolidates the progress of emission reduction efforts across business introducing additional new commitments.level units; Transition

(Stated Policies Scenario) are both scenarios

scenario proposed by the International Energy Agency

Collects and calculates climate-related performance data to ensure compliance (IEA) to describe possible future energy mix Net Zero Emissions scenario: the world takes the most

with internal and external disclosure and compliance requirements. NZE and emissions pathways. stringent actions to ensure net zero energy-related CO2

emissions by 2050 and keep temperature rise within 1.5℃.< 56 57 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Taking into account the national strategic objectives of Carbon Peak and Carbon Neutrality and the Company's own development Transition Risk and Opportunity Impacts of SANY Heavy Industry

plans and in accordance with the regulatory requirements and by referring to the practices of industry peers the Company has clearly

defined short- medium- and long-term time horizons and conducted assessment of climate change risks and opportunities based on

different time horizons. Category Risk/Opportunity Item Short-term Medium-term Long-term

SANY Heavy Industry Climate Risk Analysis Time Horizons Carbon pricing risk Low Low Low

Policy and legal risk

Stage Short-term Medium-term Long-term Energy saving and emission

reduction policy Low High High

Time Horizon 2026 to 2030 2031 to 2035 2036 to 2050

Technology risk Technology iteration risk Low Medium Medium

Transition

risk

Climate Risk Analysis and Assessment Changes in consumer demand Low Medium Medium

Market risk

SANY Heavy Industry systematically conducted scenario analysis of climate-related risks and opportunities. At the physical risk level Supply chain stability Low Medium Medium

the Company referred to the IPCC Shared Socioeconomic Pathways (SSP) scenarios with a focus on evaluating the long-term climate

challenges that the Company's major manufacturing bases and R&D centers worldwide may face by 2050 under the SSP1-2.6 low-

emissions scenario and the SSP5-8.5 high-emissions scenario. The analysis covered disaster types such as extreme heat extreme cold Reputational risk Stakeholder concerns Low Low Low

extreme precipitation and typhoons to identify their potential impacts on the safety of the Company's assets production continuity

and supply chain stability. The assessment indicates that extreme heat and typhoons are the key risks requiring priority attention.At present the Company has brought the relevant risks within a controllable range through emergency plans and facility resilience

upgrade planning.SANY Heavy Industry Physical Risk Impacts

SSP1-2.6 SSP5-8.5

Physical Risk

Short-term Medium-term Long-term Short-term Medium-term Long-term

Extreme heat weather Low Medium High Low Medium High

Extreme cold weather Low Low Low Low Low Low

Typhoon weather Low Medium Medium Medium High High

Extreme precipitation Low Low Low Low Low High

In addressing the global low-carbon transformation SANY Heavy Industry has systematically identified the transition risk and

opportunities arising from shifts in policy technology and the market. With reference to analysis under the International Energy

Agency (IEA)'s Net Zero Emissions (NZE) and Stated Policies Scenario scenarios policy compliance and changes in market demand are

the primary challenges facing the Company over the medium and long term while also creating opportunities for the development

of new electrified and intelligent products and services as well as room to improve resource efficiency across the entire value chain.To this end the Company integrates response measures into its "globalization digitalization and decarbonization" strategy and

proactively manages risks and captures opportunities through green technology R&D zero-carbon factory development and supply

chain optimization thereby continuously strengthening its competitive advantages in fields such as new energy products.< 58 59 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

SANY Heavy Industry systematically identifies climate-related risks and opportunities by comprehensively reviewing regulatory Assessment of Climate-Related Transition Risks and Response Strategies

requirements industry benchmarks and value chain data among other factors and conducts specific assessments using a multi-

scenario analysis process that combines quantitative and qualitative approaches covering physical and transition risks and Risk

opportunities short- medium- and long-term time horizons and different business processes such as the supply chain and upstream Risk Type Risk Item Subcategory Potential Impact on the Company

Impact

Period Response Measures

and downstream transportation in order to formulate targeted response strategies.International carbon tariffs such as the EU CBAM For key products exported to Europe

Assessment of Climate-Related Physical Risks and Response Strategies require exported products to provide carbon the Company is advancing carbon

Carbon pricing footprint certification creating market entry footprint certification. To date third-party

risk barriers and potentially resulting in lost export / verification has been completed for two

orders to Europe and higher additional compliance products electric trucks and wind turbines Risk Risk Potential Impacts on the Company Impact Response Measures costs. to meet core customer access requirements Type Item Period and avoid order risk.Policy and

Increased brittleness of raw materials such as steel may raise the Legal Risk The Company has established a digitalized

rate of failures in quality inspection driving up quality control and E stablish meteorological early warning and emergency Energy saving

command procedures; stock snow-melting agents and snow- and emission Increasingly stringent carbon regulatory policies

energy and emissions monitoring system

emergency procurement costs.removal equipment; implement standardized snow-removal reduction domestically and internationally are driving up

and improves cost efficiency through

R oad icing and snow accumulation may lengthen logistics and traffic-maintenance operations to safeguard smooth policy (carbon operational compliance costs. To meet higher

Medium measures such as deploying photovoltaic

standards capital expenditures on energy-saving to long- systems procuring green electricity and turnaround time increase transportation costs and potentially logistics. emissions

affect the progress of on-site delivery to customers. compliance upgrades and R&D investment in electrification will

term applying energy-efficient equipment. It has

Complete anti-freezing upgrades and insulation treatment designated product electrification as a core

Increased viscosity of hydraulic oil in equipment requires

continue to increase.for critical pipeline equipment; formulate low-temperature pressure) strategy and established a dedicated office

Extreme preheating before startup resulting in reduced effective operating operating procedures for equipment; dynamically adjust to promote it.cold time lower production capacity and increased energy use. / planning and prioritize indoor processes.weather Activities at outdoor testing grounds may be hindered and The shift toward electrification and intelligent Adopt a dual-track strategy of "hardware Dynamically adjust outdoor testing plans and shift to indoor

low-temperature conditions may affect the testing efficiency transformation may accelerate the depreciation upgrades" and "talent reserves" validation; funding has been earmarked for the optimization

of components such as batteries potentially slowing the R&D Technology Technology of assets in traditional production lines resulting Medium proactively iterating high-energy-use and testing of the building's heating system.validation cycle. Risk iteration risk in stranded assets. Meanwhile sustained high to long- equipment to reduce the risk of asset

S trengthen patrol inspection of heating systems in the plant levels of R&D investment carry the risk that term stranding; plan a dedicated budget with a

I n low-temperature conditions personnel may experience area and install additional cold-protection facilities in key Transition judgments on technology pathways may fall short focus on investment in frontier technology reduced operational flexibility while slippery environments areas; equip personnel with professional cold-weather gear of expectations. R&D and talent recruitment.increase the risk of work-related injuries potentially resulting in and adjust work arrangements. Risk

lower efficiency and increased safety investment. Sustainability-related market entry requirements Increase the share of electric equipment

in overseas markets particularly in Europe are among the Company's principal export

High temperatures cause thermal expansion of raw materials

leading to fluctuations in dimensional accuracy increasing P rovide heat allowances heatstroke prevention supplies and

Changes in becoming increasingly stringent. Customers Medium products for the European and U.S. markets

consumer regard product carbon footprints and low- to long- and continue to obtain international carbon

incoming material quality inspection costs and potentially personal cooling equipment; strictly enforce requirements to suspend outdoor operations during periods of extreme heat. demand carbon performance as key procurement criteria term footprint certification for key products as affecting suppliers' production capacity. and failure to meet these requirements may a critical credential for securing high-end

I t increases the load on the cooling systems of transportation I mplement cooling measures such as water spraying and result in a loss of market share. orders.vehicles raises the risk of malfunctions and fuel consumption ventilation at operating sites; strengthen inspections of

Market Risk

and may lead to delivery delays. vehicle and equipment cooling systems and heat dissipation maintenance. The green transformation of upstream suppliers

In the supplier admission process

Extreme Medium- and carbon compliance requirements across Medium preference is given to low-carbon suppliers

Heat R ising workshop temperatures increase the risk of hydraulic to long- O ptimize workshop ventilation and localized cooling; adjust Supply chain the entire value chain may drive up raw material to long- and cost pressures are alleviated through

Weather equipment overheating and shutdowns accelerate hydraulic oil term production shifts to avoid continuous operations during stability procurement costs and increase the complexity term lightweight design. The establishment of consumption and drive up maintenance costs and energy use. periods of extreme heat. a green supply chain management system

H igh temperatures hinder outdoor testing affect equipment heat of supply chain management.dissipation and the stability of test data and may delay product A djust outdoor testing plans during periods of extreme heat;

has been identified as a key task for 2026.validation. strengthen heat dissipation protection for testing equipment.Physical Being labeled as a high-carbon entity may attract Proactively disclose emissions reduction

Risk I t increases the risk of heatstroke among outdoor workers and

C oordinate with suppliers to address high-temperature scrutiny from financial institutions posing a risk progress to reinforce confidence and

high temperatures reduce attention and operational accuracy production challenges; strengthen temperature control in raw of moderately elevated financing costs. strengthen alignment with financial

affecting production efficiency. material storage. Reputational Stakeholder An unclear carbon neutrality roadmap or institution partners.Risk concerns /environmental compliance violations could Enhance compliance management and

I t may cause upstream raw material production stoppages and I ssue management protocols for abnormal weather and trigger negative public sentiment resulting in engage in transparent environmental

disruptions to logistics channels (roads and ports) resulting in initiate emergency responses; coordinate regular inspections short-term impact on key client relationships or communications to safeguard and sustain

supply shortages and rising emergency procurement costs. across multiple departments to safeguard the flood control regional brand perception. brand reputation.T he risks of water ingress in plant buildings and moisture damage capacity of supply chain nodes and logistics corridors.to equipment increase while excessive humidity may affect the I nstall flood control facilities at critical locations;

quality of processes such as welding and painting resulting in comprehensively clear drainage systems before the rainy

Extreme higher repair costs and production delays. Medium- season; implement drainage upgrades and technical

Rainfall to long- O utdoor testing activities are disrupted and R&D facilities may improvements to equipment foundations.term

face leakage risks affecting equipment and data safety and S trengthen sealing and drainage maintenance at R&D sites;

slowing testing progress. adopt rainproof covering or relocation measures for outdoor

E mployees' commuting may be disrupted and the risks of testing equipment.slippery floors in operating areas and electrical leakage from L ay anti-slip mats in slippery areas and set up warnings;

electrical equipment may increase potentially causing work- strengthen insulation inspections of electrical equipment;

related injuries. conduct safety training for rainy-day operations.I t may significantly affect maritime transportation potentially S ecure insurance coverage for maritime transportation;

causing shipping schedule delays and affecting the supply maintain safety stock of essential parts; use smart platforms

of imported raw materials and components; local land for early warnings.transportation may also be disrupted. C arry out wind-resistance retrofitting or design for plant

P roduction planning adjustments and delivery delays may result buildings; clear drainage systems in advance and equip

from external supply disruptions temporary power outages at Short- facilities with emergency power supplies and flood control

Typhoon industrial parks or water accumulation. medium- equipment.Weather and long-

Strong winds and heavy rainstorms may force the suspension of term W ith abnormal weather management protocols in place

outdoor testing activities while testing equipment faces risks of reinforce elevated facilities and immediately suspend outdoor

wind damage and flooding. testing during typhoons to ensure equipment safety.S afety risks for field personnel will increase and production sites D uring typhoons arrange shuttle services to transfer essential

may need to arrange for personnel to suspend operations and personnel and deliver meals; purchase property insurance for

seek shelter affecting attendance and working hours. plant assets.< 60 61 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Assessment of Climate-Related Transition Opportunities and Response Strategies Results of SANY Heavy Industry's Analysis of the Financial Impacts of Climate-Related Risks

Opportunity Potential Impact on the Company Response Measures Risk/Opportunity Risk/Opportunity Financial Item Category Item Current-Period Financial Impacts Materiality

I nvest R&D resources to explore cooperation with universities Increased raw material procurement and quality inspection costs; increased

Optimize high-energy-use processes through intelligent and research institutions on energy conservation and carbon Extreme cold weather logistics and transportation expenses; increased production energy use and Low

monitoring to directly reduce energy use and water consumption reduction processes. maintenance expenses; and indirect costs caused by delays in the progress of R&D testing

Use clean per unit of output value and lower energy cost. Upgrade production equipment improve the workflows of

technologies I ncrease the recycling rate of scrap steel adopt water-based paint high-energy-use procedures such as welding and coating and Increased production energy use and cooling expenses; increased

to improve and reuse reclaimed water to reduce raw material and water implement dedicated energy conservation retrofits. Extreme heat weather equipment maintenance and oil consumption costs; indirect costs caused by delays in the progress of R&D testing; and increased expenses for labor Low

resource consumption as well as the related procurement expenditures. E valuate the deployment of distributed photovoltaics energy protection and heatstroke prevention and cooling

efficiency S trengthen cost control and environmental protection storage and intelligent microgrids at production bases to Physical risk

performance during production through systematic management increase the proportion of green electricity. Increased procurement costs caused by supply chain disruptions; increased

of energy efficiency and material consumption. Extreme rainfall contract fulfillment costs caused by logistics delays; increased repair E xplore remanufacturing business improve the waste expenses due to equipment damage from moisture exposure; and operating Low

management system and enhance resource recycling. revenue losses caused by production suspension or delivery delays

Capture the clear demand in the European and American markets C onduct market research track policies in key markets and Increased supply chain costs caused by delays in maritime transportation;

for electric and low-carbon equipment launch new energy customer needs and flexibly adjust products and market Typhoon weather efficiency losses and overtime costs arising from adjustments to planning; Low

products to seize high-growth market share and increase revenue. strategies. and increased expenses for disaster prevention emergency response and

asset maintenance

Products Develop data services such as fuel analysis and intelligent I ncrease R&D investment in new energy products such as

and services construction to promote the transformation from "equipment electrification intelligent technologies and hydrogen energy to Increased procurement costs for green power and carbon allowance sales" to "products + service" and enhance customer loyalty and seize market opportunities. Carbon pricing risk purchases higher costs for product carbon footprint verification and

earnings stability. certification and rising compliance management expenses to meet market

Low

Actively explore value-added businesses such as equipment access requirements in the international market

By providing green solutions reinforce the Company's image as an leasing remanufacturing and data services to deliver

industry leader in intelligent development and electrification. comprehensive competitiveness. Energy saving and Increased capital expenditures for energy conservation equipment

emission reduction investment and low-carbon upgrades rising costs for energy and

M aintain ongoing attention to policies on green manufacturing policy (Carbon emissions resource management in operational processes and higher ongoing R&D High

Through projects such as green factory development and energy technological upgrading subsidies and tax incentives compliance pressure) expenditures to meet more stringent emissions standards

conservation retrofits apply for government subsidies incentives domestically and internationally.and tax reductions and exemptions to directly reduce capital Increased R&D capital expenditures for the transformation toward

Policy expenditures and operations costs related to transformation. Systematically promote green factories and energy conservation electrification and intelligent transformation accelerated depreciation or

support projects and proactively prepare for and apply for various Technology iteration risk impairment losses on traditional production line equipment and higher Medium With sound carbon management practices the Company is better government subsidies and tax incentives. market-based recruitment and training costs to acquire new technologies

positioned to obtain green credit issue green bonds and secure and talent

low-cost capital management to support long-term R&D and L everaging green practices proactively engage with financial Transition risk

investment. institutions and explore financing instruments such as green Increased R&D expenditures for developing green products such as electric

credit and green bonds. Changes in consumer equipment higher marketing expenses related to market promotion

demand and customer education and rising compliance costs associated with Medium

Install distributed photovoltaic systems at operating bases Systematically evaluate climate-related risks and opportunities international product certification and market access

to reduce the cost of purchased electricity and in extreme and formulate response contingency plans.circumstances safeguard basic production capacity and enhance Increased administrative expenses for the development and review of green E valuate and promote the construction of distributed suppliers higher procurement costs arising from low-carbon raw materials

operations continuity. photovoltaic systems at major operating bases to reduce energy Supply chain stability or components and increased system investment for the collaborative Medium

Enhancing

corporate B y improving the quality of ESG disclosure and brand reputation

costs and dependence. management of supply chain carbon data

resilience attract long-term investors who prioritize sustainable development Explore in-house development and internal production and optimize valuation and the financing environment. Rising costs associated with specialized audits and assurance services capabilities for key components such as batteries. required for ESG disclosure compliance

Explore in-house capabilities for key components reduce external Stakeholder concerns Low Continuously improve the quality of ESG information disclosure Increased brand-building investment directed toward enhancing the

dependence and enhance the overall resilience of the supply proactively communicate green achievements and attract organization's corporate sustainability profile

chain. investors focused on long-term value.Improving resource Savings in operating costs resulting from reductions in energy use water

efficiency through the consumption and material consumption as well as increased capital

use of clean technologies expenditures for the application of energy-saving and consumption-

Medium

Financial Impact Assessment reduction technologies

Revenue growth driven by new products such as electrified and intelligent

Based on an analysis of the operating model and industry characteristics the impact of climate-related risks on the Company's overall Products and services

products increased income generated by new models such as leasing

remanufacturing and data services and corresponding increases in R&D High

financial position is currently within a controllable range. Without additional response measures physical risks such as extreme cold Transition and market development expenditures

weather extreme heat weather heavy rainstorms and typhoons may disrupt the supply chain delay logistics and affect continuity opportunity Obtaining subsidies and tax rebates related to government initiatives such

of production and the progress of R&D testing resulting in temporary increases in raw material and energy costs delivery delays Policy support as green manufacturing and technology upgrades and optimizing financing Low

and efficiency losses but with limited impact on the Company's overall profitability. In terms of transition risk carbon pricing green costs through the issuance of green bonds or access to green credit

supply chain management rapid iteration of technology pathways and market access barriers in the international market will Reducing purchased power costs through self-generation methods such

increase compliance R&D and capital expenditures and may accelerate the impairment of certain traditional assets. The Company Enhancing corporate as distributed photovoltaic systems thereby lowering operating costs and Medium

has incorporated the relevant costs and risks into its long-term strategic planning and management system through forward-looking resilience attracting long-term investment by enhancing ESG performance to reduce

the cost of capital

technology deployment investment in green manufacturing and adjustments to market strategy.< 62 63 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Climate Risk Management Metrics and Targets

SANY Heavy Industry has systematically integrated the identification and response of climate-related risks into the enterprise's long- SANY Heavy Industry actively supports the nation's "carbon peak and carbon neutrality" strategy systematically plans its low-carbon

term development strategy comprehensive risk management and corporate governance framework. The Company is committed to transformation pathway continuously reduces carbon emissions intensity and has set a clear GHG emission reduction target: using

promoting the deep coordination of climate risk assessments with core business processes such as manufacturing R&D testing and 2021 as the baseline year by 2030 GHG emissions per unit of product will be reduced by 35.5% compared with 2021.supply chain management and is gradually building an institutionalized and normalized climate risk management process to achieve

forward-looking management of transition and physical risks while systematically capturing green market opportunities. To promote green development the Company continues to explore and implement carbon emission reduction initiatives in equipment

production factory operations and logistics distribution by strengthening energy management deepening internal communication

Risk Identification Risk Assessment introducing digital tools and promoting technology upgrades with the aim of systematically reducing GHG emissions throughout

operations and the products life cycle.E stablish a regular mechanism to systematically track Conduct qualitative and quantitative analysis of identi- In addition we have established a full-process GHG emissions monitoring system to continuously conduct precise collection

policies and regulations related to carbon emissions green fied risks to assess the likelihood of occurrence the scale systematic analysis and dynamic tracking of emissions data from manufacturing supply chain operations and equipment use

manufacturing and product market access domestically of potential financial impacts and the relevant time providing data support for achieving science-based carbon reduction.and internationally such as developments in China's horizons.carbon market and the EU CBAM and to monitor changes GHG Emissions Performance

in extreme weather patterns and market competition. M easure risk exposure by analyzing the impacts of risks

on key operational and financial indicators including

B ased on the Company's global operations and supply raw material procurement costs production and logistics Indicators Unit Data for 2025

chain layout systematically identify physical risks and efficiency capital expenditures R&D cycles and market

transition risks that may affect production continuity orders. Total GHG emissions (Scope 1+Scope 2) tCO e 345006.20

supply chain stability cost structure and market access 2

and formulate and regularly update the List of Climate-

Related Risks and Opportunities. —Total direct GHG emissions (Scope 1)5 tCO2e 76112.84

—Total indirect GHG emissions (Scope 2)6 tCO2e 268893.36

Risk Response Risk Monitoring

GHG emissions intensity (Scope 1+Scope 2) tCO2e / RMB 1000000 3.87

B ased on risk assessment results and the Company's E stablish and track a series of key performance indicators

strategy formulate specific response targets and action such as energy use per unit of output carbon emissions

plans and integrate them into the annual plans and intensity sales revenue from new energy products and the Other Indirect GHG emissions (Scope 3) tCO2e 60005.99

budgets of each business unit such as production R&D completion rate of audits of high-risk suppliers in order to

supply chain and sales. monitor emission reduction progress risk exposure levels

and the effectiveness of measure execution. ——Category 3 – Fuel- and Energy-Related Activities

7 tCO2e 51742.15

F or high-priority risks deploy specific management

measures such as weather-resilience upgrades for R egularly review the target achievement status of climate

8

production equipment establishing green supply chain targets the status of major risks and the effectiveness ——Category 7 – Employee Commuting tCO2e 8263.84

standards and promoting product electrification and of response measures and dynamically review and

carbon footprint certification; define the responsible optimize management strategies based on changes in the

department; and formulate emergency plans for scenarios internal and external environment developments in new

involving critical operational disruptions so as to reduce technology and regulatory requirements.finance impacts and capture green market opportunities.

5 T otal direct GHG emissions (Scope 1): Mainly include emissions from the combustion of gasoline and diesel for administrative and transportation vehicles as well as

emissions from the use of natural gas. Calculation basis: the Guidelines for the Accounting and Reporting of GHG Emissions by Machinery Manufacturing Enterprises

(Trial) .

6 Total indirect GHG emissions (Scope 2): Mainly include emissions from purchased electricity and purchased heat. The national grid emission factor is based on the

Notice on Effectively Conducting the Administration of GHG Emission Reporting of Power Generation Enterprises from 2023 to 2025.

7 Other Indirect Greenhouse Gas Emissions (Scope 3) Category 3 – Fuel- and Energy-Related Activities: This category primarily includes upstream emissions associated

with the production and use of gasoline diesel natural gas and electricity as well as emissions arising from transmission and distribution losses of purchased

electricity. Calculations are based on the UK Government GHG Conversion Factors for Company Reporting and the 2024 National Electricity Carbon Footprint Factor

published by the Ministry of Ecology and Environment of China.

8 Other Indirect Greenhouse Gas Emissions (Scope 3) Category 7 – Employee Commuting: This category mainly covers emissions generated from employees'

daily commuting. Calculations are based on the Commuting Monitoring Report of Major Chinese Cities published by the China Urban Planning Network.< 64 65 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Environmental Management Management Initiatives

SANY Heavy Industry integrates the concept of green development throughout its operations. Centered on the HSE Management

SANY Heavy Industry actively fulfills its environmental protection responsibility by establishing a systematic end-to-end environmental Manual it has established an environmental management system covering all stages and has formulated specific management

management system and implementing specific initiatives covering energy conservation emissions reduction resource recycling and standards for environmental assessment and management hazard identification emergency management HSE reviews and

ecological protection it minimizes the impact of operations on the ecological environment promotes the harmonious coexistence agreement signing systematically promoting environmental risk prevention and control and sustainable operations.of industrial production and the natural environment and consolidates the green foundation for the Company's high-quality

development. In 2025 SANY Heavy Industry's environmental protection investment reached RMB 280 million. Lifecycle Environmental Management

Management System Environmental Impact Assessment Environmental Monitoring

Before the project starts the Company strictly complies with the E ach Company formulates monitoring plans based on its actual

The Company strictly complies with the Environmental Protection Law of the People's Republic of China and other applicable legal and regulatory requirements of the region where the project circumstances. Automated monitoring manual monitoring

laws and regulations. With reference to standards such as the ISO 14001 Requirements and Guidance for Use of Environmental is located and carries out environmental impact assessment in commissioned testing and other methods thereby establishing

Management System and the ISO 45001 Requirements and Guidance for Use of Occupational Health and Safety Management System depth. a robust environmental monitoring system.it has formulated and regularly revised internal documents including the HSE Management Manual applicable to all subsidiaries

to comprehensively improve its health safety and environment (HSE) management mechanisms. In 2025 the Company revised and It comprehensively investigates and evaluates the adverse Each Company strictly complies with emission standards in its

issued a total of 9 management procedures including the Environmental Policy HSE and 6S Management Manual Sustainability (ESG) impacts and potential risks that may be caused to the emissions formulates self-monitoring plans and conducts third-

Management Policy and the Procedures for Accident Reporting Investigation and Handling to further advance system improvement. surrounding environment throughout the project life-cycle while party assessments of emission permits. It carries out monthly formulating scientific and reasonable risk response measures quarterly and annual environmental monitoring in strict

The Company has established a three-tier management structure SANY Heavy Industry Environmental to minimize or eliminate adverse effects to the greatest extent accordance with applicable standards and on this basis completes

under which the President supervises and examines major HSE Management System Structure possible. work related to environmental impact audits thereby minimizing potential environmental impacts to the greatest extent possible. In

decisions of the Company and oversees the handling of major 2025 the licensed pollutant discharge rate reached 100% with no

HSE abnormal events. The Sustainability Committee promotes instances of exceeding emission standards.the implementation of environmental health and safety Decision-

initiatives and reports progress to board members ensuring Making Level President

the effective implementation of HSE management system "Four New" Introduction Management Emergency Management

requirements. In 2025 a total of 5 President's office meetings Management Level Sustainability Committee

were convened to hold special discussions on major matters When introducing new equipment materials technologies or The Company identifies and mitigates potential environ_mental

related to environmental management. processes (the "Four New") the Company identifies and assesses and safety incidents or emergencies so that response measures

Execution Level HSE Office project hazards and environmental factors for the project to can be taken in a timely manner.The Company has established a systematic closed-loop ensure that all aspects comply with safety and environmental

mechanism for HSE targets and performance management setting regulations. All subsidiaries of the Company have prepared emergency plans

annual targets and promoting their cascading implementation by for sudden environmental accidents and emergency plans for

subsidiaries. To strengthen responsibility fulfillment the Company B efore adopting new processes technologies or materials production safety accidents. Each year they carry out no fewer

has incorporated HSE performance into the annual performance or putting new equipment into use the Company carries out than two emergency drills and training sessions based on actual In 2025 HSE education to enhance employees' safety awareness and conditions to enhance their capacity to respond to sudden

contracts of executives and established a direct linkage mechanism operational efficiency. environmental incidents.with compensation and benefits. It has also formulated the HSE

Reward and Punishment System and a corresponding manual for S tandard acceptance procedures are carried out for "Four New"

HSE behavioral rewards and penalties and adjusts compensation 12 projects.based on annual assessment results to ensure effective had been certified by the ISO 14001 environmental

management implementation and continuous improvement. management system Employee Training Stakeholder Management

To continuously improve its HSE management standards the

Company has established a regular multidimensional internal and 54.5 T he Company formulates targeted training programs The Company enters into specialized agreements on external audit system conducting one external independent audit the certification coverage rate reached % and competency requirements for employees in various environmental protection and other documents with

each year one internal site audit every six months and internal job roles covering areas such as risk management case stakeholders to ensure that the responsibilities of all parties are

online audits every month with the audit scope covering all factories. studies and emergency prevention/preparedness in order clearly defined and that measures are fully implemented;

to strengthen employees' HSE knowledge and improve

their response capabilities when issues arise. In 2025 the The Company conducts necessary reviews of environmental

heavy truck heavy lifting and pump truck business units protection for project contractors suppliers and other stakeholders

2025 HSE audit implementation of the Company focused on key positions in coating and to ensure that stakeholders strictly comply with relevant standards

warehousing and organized personnel to carry out training and requirements during the course of cooperation;

The Company conducted on-site reviews of the system building and operation Each month the Company conducts compliance evaluations on the standardized management of hazardous waste and

of the HSE systems of subsidiaries through special 6S9 inspections and used on the HSE systems of its subsidiaries covering simultaneous emergency drills for sudden environmental incidents thereby T he Company conducts safety and environmental assess-

the HSE digital platform to monitor safety hazards safety incidents and the consideration for construction projects on-site occupational enhancing employees' awareness of environmental protection ments for stakeholders and with reference to the assessment

certification rate of personnel engaged in specialized tasks across all businesses. hazard monitoring and environmental monitoring. compliance and practical capabilities and reducing the standards imposes economic penalties for cases that fail to

likelihood of potential environmental risks. A total of over meet requirements thereby effectively constraining stakeholder

200000 training sessions were conducted throughout the year. conduct.

9 6 S: Six core management elements including Sort Set in Order Shine Standardize Sustain and Safety.

< 66 67 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Ecological Protection

Adhering to the philosophy of green manufacturing SANY Heavy Industry strictly implements national and local standards for Data Related to Waste Gas Emissions in 2025

wastewater and waste gas treatment and solid waste disposal complies with noise prevention and control regulations and

applies whole-process management to the discharge and disposal of various types of waste. We have established stringent

emissions control targets and are continuing to optimize production processes to ensure that pollutants are emitted in lawful Indicators Unit Data for 2025

compliance. At the same time we actively promote ecological restoration and protection in and around our industrial parks Total waste gas emissions cubic meter 18417283923.48

striving to protect biodiversity and achieve harmonious coexistence between production operations and the natural environment.SO2 emissions tonnes 2.44

NOX emissions tonnes 39.60

During the reporting period

VOCs (volatile organic compounds) emissions tonnes 145.20

Total soot emissions tonnes 83.52

SANY Heavy Industry did

not record any environmental pollution incidents involving waste loss leakage or diffusion. Wastewater Management

2025 Environmental Protection Performance SANY Heavy Industry's water pollutants mainly arise from daily

production and operations with chemical oxygen demand Wastewater emission reduction target

(COD) and ammonia nitrogen as the primary pollutants. The

Wastewater waste gas and on-site hazardous waste was disposed of in Company strictly complies with the Water Pollution Prevention

noise emissions met compliance with regulations at and Control Law of the People's Republic of China and other laws Taking 2021 as the baseline year

and regulations treats wastewater by categories for all types of

100 100 wastewater generated and prevents water pollution incidents % of standards % through whole-process monitoring and control. At the same achieve a

time it manages wastewater by combining source control end-

of-pipe disposal and reclaimed water reuse and has established

emission limits that are more stringent than national standards. To 14.4%

ensure effective execution the Company requires its subsidiaries reduction in total chemical oxygen demand (COD)

Waste Gas Management to formulate and implement management systems for wastewater emissions per unit of product by 2030

treatment specify emission limits for pollutants such as COD and

ammonia nitrogen strictly control the treatment and discharge

SANY Heavy Industry systematically manages atmospheric emissions in production and business management. Its air pollutants of industrial wastewater by optimizing treatment processes and

namely volatile organic compounds (VOCs) mainly originate from production and operations processes such as coating and welding. conducting on-line monitoring and continuously enhance its

The Company strictly complies with the Atmospheric Pollution Prevention and Control Law of the People's Republic of China and management capabilities for the multipurpose use of wastewater.other relevant laws and regulations implements stringent requirements for pollutant emissions and carries out waste gas emissions

management at its production bases to ensure that waste gas emissions comply with environmental protection standards. In 2025 SANY Commercial Vehicles Changsha carried out pipeline modifications using concentrated water containing high

concentrations of calcium and magnesium ions instead of tap water to clean cab transportation equipment achieving annual water

In 2025 we actively adopted emission reduction measures such savings of 24175 tonnes.Waste gas emission reduction target as green processes and environmental protection treatment

equipment effectively reducing the generation and emissions 2025 Wastewater Discharge-Related Data

of waste gas in production and operations. We invested RMB 2

With 2021 as the baseline year million in the Lingang factory of Heavy Machinery completed the Indicators Unit Data for 2025

environmental impact assessment acceptance for a new project

and built welding fume treatment equipment to control pollution Total water discharge tonnes 507953.48

by 2030 achieve an from welding operations at the source and strengthen the

workshop's air cleanliness safeguards. Meanwhile we invested Biochemical oxygen demand (BOD) emissions kg 5293.52

18 1.63 million yuan to establish online VOCs monitoring systems at % Chemical oxygen demand (COD) emissions kg 35892.56 Hunan SANY Medium Tonnage Hoisting Machinery Co. Ltd. and

reduction in total volatile organic compounds STE Transmission Equipment Co. Ltd. ensuring compliance with Suspended solids (SS) discharge kg 8941.17

(VOCs) emissions per unit of products coating exhaust gas emission regulations.Ammonia nitrogen (NH3) discharge kg 4545.77

< 68 69 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Waste Management Green Development

SANY Heavy Industry's solid waste mainly arises from daily

production and operations including general waste and Solid waste emission reduction target Guided by the dual carbon goals SANY Heavy Industry deeply integrates green development into the entire value chain of R&D

hazardous waste. The Company strictly complies with the manufacturing and operations. We continuously enhance green competitiveness across every process of operations by steadily

Environmental Protection Law of the People's Republic of expanding photovoltaic applications and carrying out energy-saving technological upgrades thereby promoting cleaner and more

China the Law of the People's Republic of China on Prevention Taking 2023 as the baseline year efficient energy use structures in factories; by implementing water-saving processes we make every effort to reduce resource

and Control of Environmental Pollution by Solid Waste and consumption per unit of output; and by systematically planning ecological spaces and low-carbon facilities we deliver modern

other relevant regulations and policies and has formulated intelligent manufacturing bases that coordinate production ecology and daily life.special systems such as the Waste Management Guideline to achieve a

achieve proper whole-process management of solid waste

in accordance with the principles of recycling and harm

minimization. The Company strictly disposes of hazardous 4% Energy Management

waste in accordance with national laws and regulations reduction in hazardous waste generated

ensuring effective control of hazardous waste during storage per unit of products by 2030 SANY Heavy Industry has established its decarbonization pathway around two directions: "energy conservation and efficiency

transfer and other processes so that it is handled in a safe and improvement" and "energy infrastructure transformation." In terms of energy conservation the Company has established management

compliant manner. protocols and uses routine inspections and monitoring to track energy use across each production process in real time implementing

refined management and optimization to improve energy use efficiency. In terms of energy infrastructure transformation the Company

actively promotes the large-scale application of projects such as photovoltaic and clean energy reducing reliance on fossil fuels and

Waste-Related Data for 2025 other traditional non-renewable energy sources.Indicators Unit Data for 2025

The total production of hazardous waste kg 5904310.00 Energy Conservation and Carbon Reduction Targets

Total general industrial solid waste discharge tonnes 256734.58

Taking 2022 as the baseline year Taking 2021 as the baseline year

the Company aims to reduce total energy the Company aims to reduce Scope 1 and

Biodiversity Conservation consumption intensity by 2030 Scope 2 GHG emissions per RMB 10000 of output value by 2030

22.5%

SANY Heavy Industry strictly complies with the Law of the People's Republic of China on Environmental Impact Assessment the 35.1%

Outline for Nature Conservation of China the Regulations on the Administration of Environmental Protection for Construction Projects

and other laws and regulations fully integrates the philosophy of ecological protection into its business operations processes strives

to reduce impacts on ecosystems and strengthens the protection of vital ecosystems species and genetic resources. achieve

net-zero carbon emissions

For new construction and renovation projects we conduct environmental surveys and assessments during the preparatory phases to by 2050

effectively mitigate and control impacts on the surrounding environment and avoid carrying out construction or operations in legally

designated ecological protection area10 important habitats11 and other areas with critical ecological functions. For projects already

in operation subsidiaries regularly conduct independent environmental impact assessment monitoring to continuously reduce

environmental burdens.At the same time the Company also implements a tiered assessment of environmental sensitivity for project sites and after confirming

that a project will not cause significant impacts on ecological resources and habitats promotes subsequent work so as to avoid Energy Conservation Management

ecological damage to the greatest extent possible and foster the aspiration of harmonious coexistence between humanity and nature.As of the end of the reporting period the Company had not carried out production or business activities within ecological protection

red lines. In accordance with standards such as the Code for Construction and Acceptance of Automation Instrumentation Engineering and the

Technical Code of Energy Consumed Monitoring Systems for Large-Scale Public Buildings SANY Heavy Industry has built an equipment

inter-connectivity system to enable smarter management of production processes thereby improving production efficiency while

reducing energy consumption. Based on this system we achieve real-time carbon emission data collection to ensure the timeliness

10 L egally designated ecological protection areas: Defined or confirmed by laws regulations policies and other normative documents as national parks nature and accuracy of data. On this basis the Company has further refined the standards for measuring and accounting for carbon emissions

reserves natural parks and other natural protected areas including World Natural Heritage sites ecological protection red lines. and by applying scientific statistical and analytical methods conducts in-depth mining and analysis of carbon emission data to

11 Important habitats: These include natural concentration areas and habitats of key species spawning grounds foraging areas overwintering sites and migration identify patterns and pinpoint issues thereby providing reliable data support for formulating precise emission reduction strategies.

pathways for significant aquatic life as well as critical breeding grounds stopover sites wintering areas and migration routes for migratory birds and other wildlife.< 70 71 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Energy Infrastructure Transformation

The Company has formulated the Environmental Protection Equipment Operation Management Policy integrating energy-saving The Company's future development plans for energy use focus on three main directions: building distributed photovoltaic systems and

measures into all aspects of production activities. Through initiatives such as introducing energy-saving equipment optimizing energy storage systems and making extensive use of green electricity with the aim of establishing a clean low-carbon and efficient

operational workflows and reasonably scheduling equipment use it has minimized energy wastage to the greatest extent possible energy system. Based on the above plans the Company has systematically promoted clean energy infrastructure development. We

and continued promoting process carbon reduction. In 2025 the Company carried out a daily precision monitoring for the four prioritize the deployment of distributed photovoltaic and supporting energy storage projects across production bases making the

meters covering water power oil and gas accurately identifying key nodes and optimization opportunities for energy consumption generation and use of green energy a core pathway for reducing the carbon footprint of operations. Through the successive investment in

controls and promoted the implementation of a series of special-purpose upgrades across 19 subsidiaries including air compressor and construction of a series of projects the Company's green power supply capacity has been substantially enhanced.energy-saving upgrades shifting power loads from peak periods to off-peak and valley periods and transformer capacity-to-demand

conversion projects saving a total of RMB 72 million for the year. In 2025 enterprises including Huzhou Heavy Lifting Lianyuan Pump Road and SANY Heavy Machinery Kunshan had completed the

construction of photovoltaic and energy storage projects achieving a total installed photovoltaic power generation capacity of 48 MW

and cumulative annual power generation of 1.74 million kWh. As of the end of 2025 SANY Heavy Industry had applied photovoltaic

Structure of SANY's Equipment Inter-Connectivity System power generation systems at 22 subsidiaries with clean energy usage reaching 7736.56 ten thousand kWh and the proportion of clean

energy usage12 at 14.7%.

2025 Energy Use and Carbon Emissions Data

ERP PLM MOM Quality

Management Indicators Unit Data for 2025

Purchased electricity kWh 506772250.19

Data Integration Control Instructions

Connector Acquisition Gas cubic meter 33255165.20

Data Gasoline Liter 4582.00

Standardization Data Processing Energy use

Clean energy kWh 77365601.75

Multi-source Heterogeneous

Real-time Data Acquisition Giving Instructions Diesel Liter 1598820.94

Total energy consumption13 tce 108461.82

Industrial Ethereum Wireless Network 4G/5G

12 The calculation method for the proportion of clean energy utilization: the ratio of photovoltaic power consumption converted into energy consumption to total

energy consumption.Industrial Network Communication Protocol 13 Comprehensive energy consumption: The total amount of various energy sources actually consumed in the production of a product or provision of a service during

the statistical reporting period after being converted separately in accordance with the specified calculation methods and units. Basis for calculation: General

Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020).Automatic

Dimensional Heat Testing

Database AGV Robot CNC Treatment

Other

Equipment Production

Furnace Line Equipment

Some Energy-Saving Measures for 2025

To adapt to changes in power policies SANY Heavy Lifting Ningxiang systematically optimized its electricity use structure and

production scheduling by increasing the proportion of electricity consumed during flat and valley periods and reasonably

avoiding high-price peak periods. Meanwhile the base adjusted production hours and simultaneously established a daily

monitoring mechanism to ensure effective execution of off-peak scheduling. In 2025 the base saved approximately 180000

kWh of electricity in total and reduced carbon emissions by approximately 95 tonnes.

<7273>

Visualization

Predictive Maintenance

Big Data Analytics

Real-time Data Storage and

ProcessingSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Resource Management Packaging Material Management

We adhere to the philosophy of "refined control throughout all stages" and "circular economy" focusing on water recycling and SANY Heavy Industry regards product packaging as an important process in promoting resource efficiency improvement and reducing

efficiency improvement while vigorously promoting the greening reduction and recycling of packaging materials. Through systematic environmental impact. Adhering to the principle of "eco-design and recycling first" we systematically promote the greening reduction

management and technological innovation we continuously reduce environmental footprints and advance toward a more efficient and recycling of packaging materials. At present through a series of initiatives such as optimizing packaging design promoting

and cleaner model of resource utilization. renewable and recyclable materials and establishing a closed-loop recycling system we are continuously reducing disposable

packaging consumption and improving resource utilization efficiency. We will continue to deepen collaborative innovation with

Water Resource Management partners actively explore intelligent and standardized green packaging solutions and build a green supply chain.SANY Heavy Industry strictly complies with national policies The Company continues to strengthen full-process water use

and regulations on water resource management and has management by selecting water-saving devices at the source 2025 Packaging Material Usage Data

systematically established a full-process management system establishing rainwater storage ponds and reclaimed water reuse

covering water withdrawal water use recycling and discharge. systems to reduce consumption and enhancing supervision in daily Indicators Unit Data for 2025

In accordance with the Environmental Policy the Company operations to promptly address running bubbling dripping and

has clarified water-saving management requirements and leaks so as to improve water use efficiency. To support refined control

departmental management responsibilities promoting water the Company has installed metering instruments and implemented Total tonnes 86998.54

resource management from the top-level design. daily monitoring records and a monthly analysis mechanism to

ensure the traceability of water use and manage water use conditions Metal (Aluminum Alloy Packaging Boxes) tonnes 78893.04

in a data-driven manner. In 2025 all bases actively implemented the

Water-saving target Company's requirements for the "four-meter monitoring" initiative.Relying on the warning function of the new energy management Plastic (Plastic Sheets) tonnes 293.47

platform they realized software warnings and closed-loop disposal Packaging material usage

Taking 2022 as the baseline year through threshold settings for water use branch lines effectively

resolving leakage issues on the pipeline. Among them Transmission Composite materials (Plywood) tonnes 3669.69

SOTE has cumulatively identified 22 water use abnormalities and

by 2030 water consumption per unit of product together with administration completed repairs of 20 water leakage Paper (Pulp Boards) tonnes 1769.91

will be reduced by points; Huzhou Equipment used acoustic leak detection technology

to investigate leaks and found 12 leaks in the northern plant area

28.8 saving an average of RMB 50000 in water charges per month after Others tonnes 2372.43% repairs; the Kunshan base identified 1 water leak point reducing

seepage by an average of 600 tonnes per month.During the reporting period SANY Heavy Industry did not record

any issues in seeking access to applicable water sources.

2025 Water Resource Usage Data

Indicator Unit Data for 2025

Water resource usage Municipal water supply tonnes 3946162.73

< 74 75 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Green Industrial Parks Green Office Initiatives in 2025

In the practice of environmental management and sustainable development the Company has always taken "green low-carbon Paperless Office and Resource Efficiency Energy Conservation Retrofitting and Equipment Upgrades

initiatives" as its core orientation and driven by the dual engines of "digitalization empowerment" and "initiatives in practice" has

built an environmentally friendly system covering all operational scenarios across its industrial parks.With the goal of "integrating green lifestyles into all operational Clean energy use: strengthen the application of clean energy

scenarios" the Company comprehensively practices its in the production area and office areas.In 2025 four subsidiaries of SANY Heavy Industry—Hunan SANY Medium culture of environmental protection by promoting paperless

Lifting Machinery Co. Ltd. SANY Heavy Machinery (Chongqing) Co. Ltd. office and shared workstations; implementing time-based Integration of energy-saving equipment and digitalization

SANY Heavy Machinery Co. Ltd. and SANY Special Vehicle Co. Ltd.—were lighting controls in public areas and dynamically adjusting air- deployment: We integrated 18 categories of energy-saving

certified as provincial-level "Green Factories" bringing the cumulative total conditioning temperatures according to ambient temperature; equipment including dishwasher heat recovery systems

to seven certified "Green Factory" entities. and launching "Clean Plate Campaign" to eliminate food waste. solar light strips and stove retrofits (covering 33 industrial

parks). After integration the total power consumption of the

equipment decreased by 11% (with average daily total power

Green Office Monitoring Optimization and Inspection-Based consumption dropping from 34920 kWh to 30772 kWh a

Corrective Actions reduction of 4148 kWh). At the same time we deployed

digitalization equipment such as solar street lamps LED

energy-saving lamps sound-activated lights and smart meters

SANY Heavy Industry adheres to green living and production has formulated the Non-Production Area Energy Consumption Management to enable precise control of energy use.System clarified the regulatory requirements and responsibility boundaries for energy and resource management in non-production Energy use monitoring and inspection-based corrective

areas and provides institutional safeguards for building a circular economy reducing the ecological burden and creating a low-carbon actions: Through measures such as energy use inspections

environmentally friendly and sustainable working and living environment. (supervising and assessing water electricity gas heating and

wastewater discharge; analyzing abnormal areas; formulating

In 2025 the Company adhered to the principle of "full-scenario coverage and multidimensional efforts" in its energy conservation and control measures; and assigning responsibility for corrective

emission reduction practices with integrating green production and lifestyle into operations as the core building an emission reduction actions) silent screening grid inspections and enclosed office

system with clear layers and effective implementation ranging from day-to-day conservation details and hardware upgrades and areas we cumulatively identified and rectified 2036 issues in 2025.optimization to intelligent control and monitoring thereby driving the coordinated improvement of environmental benefits and operational

efficiency. In 2025 the Company's energy consumption in non-production areas decreased by 14% year-on-year.Environmental Protection Culture Building

The Company attaches great importance to environmental protection culture building and is systematically promoting it from two

dimensions: management team capability enhancement and company-wide training. For the management team we invite external

professional energy management institutions to conduct business exchanges strengthen their professional capabilities and provide

talent and knowledge support for green operations. In terms of company-wide training the Company has established a regular tiered

and category-based training system and continues to strengthen environmental protection awareness among all employees and

promote green practices through energy conservation training. In 2025 we conducted a total of eight quarterly training sessions on

green energy conservation and emissions reduction with over 1832 participants and 100% coverage of personnel in key positions.Through case studies interactive discussions and other engaging formats the training enhanced employees' understanding of

the importance of energy conservation and emissions reduction as well as practical implementation pathways. These initiatives

effectively strengthened awareness of green principles and encouraged more proactive participation in green office practices.In 2025

we conducted a total of over

8 1832participants

quarterly training sessions on green energy

conservation and emissions reduction

coverage of personnel in key positions

100%

< 76 77 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

04

Developing a People-

Centered Culture to

Foster First-Class Talent

Adhering to the people-centered philosophy SANY Heavy

Industry has systematically built a framework of care

support and development that covers employees' entire

career lifecycle. On the basis of fully safeguarding employees'

legitimate rights and interests we provide systematic training

and fair promotion opportunities and promote employees'

growth together with the enterprise through a rich variety of

cultural and sports activities. At the same time we continue

to focus on employees' safety and health and are committed

to fostering a positive healthy and warm work environment.Compliant Employment

Talent Development

Employee Benefits

Health and SafetySANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Compliant Employment Employee Performance in 2025 Number of employees by region21890

In 2025

SANY Heavy Industry places compliant employment in an important position in its corporate development strictly observes Total number of full-time

national laws and regulations and international labor standards and adheres to the principle of fair employment. We actively employees

nurture a diverse and inclusive work environment and effectively safeguard employee rights. 28469 6575

Fair Employment 4

Chinese Employees from Hong Kong Overseas

SANY Heavy Industry strictly complies with the Labor Law of the People's Republic of China the Labor Contract Law of the People's mainland Macao and Taiwan of China employees

Republic of China and other applicable laws and regulations; observes the core conventions of the International Labor Organization;

and continues to advance the implementation of the Code of Ethics and Business Conduct for Employees so as to safeguard the Number of employees by gender Number of employees by rank

legitimate rights and interests of every employee and prohibit all forms of employment discrimination forced labor and child labor. 24665 21440

During the recruitment process the Company has established a dedicated review mechanism to conduct background verification

on candidates and ensure that no child labor or forced labor exists in any form. We prohibit all forms of workplace discrimination

harassment and violence and protect employees' personal information through the issuance of the Data Platform Privacy Policy. At

the same time the Company clearly stipulates compensation and benefits working hours and leave and overtime compensation in its

policies so as to safeguard employees' legitimate rights and interests in all respects.

6805

3804

In 2025 224

Male Female Senior Middle Junior

SANY Heavy Industry's labor contract signing rate was 100% and the Company had no major labor disputes strikes or management management employees

major layoffs in the past three years.Number of employees by role type Number of employees by age

939519390

8851

Diversified Teams 5720

7750

SANY Heavy Industry attaches great importance to the introduction and cultivation of talent attracting exceptional talents from

diversified backgrounds to join the Company through multiple channels including online promotional events public information 2218

platforms and offline job fairs. We are committed to fostering an equal and diversified work environment respecting differences 684 771 830 1329

in gender ethnic groups age nationality and other aspects and actively responding to the needs of employees from different

backgrounds.Production Sales Technical Finance Aged 30 Aged Aged 51

personnel personnel personnel personnel and below 31—50 and above

As of the end of the reporting period Administrative Service Management

personnel personnel personnel

The Company's employees Female employees Women accounted for The Company actively builds a globally integrated human resources management system and in line with the laws regulations

came from more than and cultural environments of different countries and regions has systematically prepared and issued the Local Employee Human

40 3804 14.3 Resources Manual covering 26 countries and the Employee Handbook covering 25 countries providing systematic guidelines for the ethnic minorities % of the senior management team standardized management and cultural integration of overseas employees.

While advancing diversified development the Company continues to conduct systematic analysis of employee turnover and based

on the results continuously optimizes the human resources management system. By strengthening employee care improving training

mechanisms and implementing targeted incentives it continually enhances talent retention effectiveness and team cohesion.< 80 81 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Employee Turnover of SANY Heavy Industry Talent Development

Employee turnover rate by gender (%) Employee turnover rate by job level (%) SANY Heavy Industry regards talent as a core driver of enterprise development. By building a systematic training system fair

promotion mechanisms diversified compensation and benefits and efficient performance assessments the Company fully

unlocks employees' potential and supports employees in achieving their individual career development.

9.048.52

7.257.19

5.36 Employee Promotion

SANY Heavy Industry adheres to fair and impartial promotion principles adopts a performance- and capability-oriented approach

and is committed to providing each employee with a broad development platform and equal promotion opportunities to support the

achievement of their career goals.Senior Middle Junior

Male Female The Company has formulated and continuously improved a series of management protocols including the Management Personnel management management employees Rank Management System the Cadre Management System The Policy of SANY Heavy Industry Career Promotion Channels the

Promotion Management Standards and the Provisional Rules for the Talent Development Committee thereby establishing a talent

development mechanism covering all levels and sequences. In 2025 the Company further promoted the Phase II Talent Management

Employee turnover rate by role type (%) Employee turnover rate by age (%) Transformation project with a focus on advancing the global deployment of the talent development committee optimizing succession

planning and the specialist management system and completing succession review and talent backup for more than 1100 cadre

12.62 13.66 10.81 positions.

SANY Heavy Industry Career Promotion Channels

6.116.46

4.56

3.24

Management

talents R&D talents

Production R&D Business management Aged 30 Aged Aged 51

personnel personnel personnel and below 31—50 and above professional leadership professional leadership

talents talents

Others

director/Business engineer of special

Division CEO grade chief engineer

Employee turnover rate by region (%) supervisor/general expert engineer

manager of the dean

senior manager subsidiary senior engineer

8.53 departmental head/ director

manager departmental mid-level engineer

supervisor

commissioner

junior engineer

4.03

assistant engineer

0.00

Chinese Employees from Overseas

mainland Hong Kong employees

Macao and

Taiwan of China

< 82 83 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Compensation and Benefits Training and Development

SANY Heavy Industry is committed to establishing a fair equitable and market-competitive compensation and benefits incentive SANY Heavy Industry has always regarded employee development as a core pillar supporting the development of the enterprise and

system and through diversified incentive methods fully stimulating employees' enthusiasm and creativity to achieve mutual success continuously improves its training and development system to build a systematic and professional growth platform for employees.and shared progress for employees and the enterprise. The Company has formulated and implemented a series of foundational management protocols including the Training Management

System the Curriculum Development Management Measures and the Training Points Management Regulations. In 2025 the Company

The Company continues to optimize its compensation incentive mechanisms building a tiered compensation system covering all optimized and updated the Administrative Measures for Induction Training and the Curriculum Development Management Measures

employees and creating a floating incentive model that combines short-term performance incentives plus medium-to-long-term equity and formulated the Administrative Measures for Sponsoring Outstanding Employees for Further Study providing more comprehensive

binding. Based on job grade and performance assessment results we differentiate the design of annual performance bonuses and institutional safeguards for employees' career development.implement medium- to long- term incentive plans equivalent to annual bonuses for key technical positions core R&D personnel business

management talents and core international business personnel. In addition the Company implements a preferential salary adjustment The Company's training system covers all full-time employees. For part-time employees and contract workers the Company provides

policy for outstanding graduates from previous years and promotes high-performing heads of frontline production and technology units necessary onboarding training safety protocols and skills training based on the nature of their positions ensuring that they are

to the cadre level enabling them to enjoy corresponding remuneration packages and further motivating key grassroots personnel. qualified for their roles and comply with the Company's standards. The coverage rate of the training system reached 100%.Building on the foundation of systematic institutional development the Company has systematically established a differentiated

2025 Employee Stock Ownership Plan development system covering domestic overseas and key core positions based on the development needs of critical talents. In

2025 it carried out multi-level specialized training programs focused on core business processes transformation cadre pipeline

development professional skills enhancement and the cultivation of emerging talent covering more than 13000 person-times

Adhering to the philosophy of long-termism SANY Heavy In accordance with the established vesting arrangements throughout the year and continually enhancing the professional capabilities and leadership capabilities of talent at all levels.Industry has steadily advanced the employee stock ownership the Company carried out phased vesting of medium- and

plan to share development achievements with employees. long-term incentives granted in previous years SANY Heavy Industry's Talent Training System

In 2025 the Company granted a total incentive amount with the cumulative vested amount14 for the year

of approximately reaching

Domestic Training

RMB 523million RMB332million

to 5382 employees Guided by manager appointment and talent assessment the Company has built a holistic product-focused training

approach covering business management R&D marketing processes manufacturing quality assurance commerce

finance and HR systematically improving employees' general and specialized skills.Performance Assessments Overseas Training

Based on expatriation assessment and follow-up support the Company provides comprehensive training for five categories

SANY Heavy Industry adheres to the orientation of "high performance high standards and high demands" and continues to promote of critical talents across dimensions such as basic knowledge training risk management language proficiency and

a dual-dimensional performance management system centered on results and process. The Company has formulated and improved professional development so as to enhance their overseas business expansion capabilities and front-line operational skills.the Performance Management System implemented differentiated assessments by tier and category established a four-tier standard

for position-based performance bonuses and innovatively applied the "Dual Flywheel15" assessment approach for management

employees engaged in business management. Key and Core Position Training

In 2025 the Company optimized the performance management system by setting clear performance targets for all managers and

incorporating ESG-related indicators into the assessments of the management. Their performance achievement directly determines the

annual appraisal rating and is linked to compensation effectively advancing the implementation of sustainable development targets. Through differentiated development arranged by level domestically and by role overseas the Company strengthens core

job skills understanding of business processes and cross-cultural leadership capabilities to support strategy execution and

The Company has established a performance management system for employees in different positions and at different levels and enhance organizational capabilities.has set tiered standards for annual performance bonuses based on differences in position level and value contributions. At present

performance assessments cover all employees. In addition the Company has established special incentive plans for pivotal roles

in domestic business overseas operations R&D commerce and manufacturing including incremental profit sharing innovation 2025 SANY Heavy Industry Employee Training Performance

achievement awards and cost reduction commissions so as to fully unleash employees' potential and promote the coordinated

development of organizational strategy and individual performance.In 2025

Professional skills training courses conducted Number of employees trained Training participation reached

14 The unlocking has been implemented in accordance with the 50% ratio stipulated in the equity-salary system excluding the portion not distributed due to

employee resignation or personal integrity issues. 4841 sessions 26932 persons 31717 person-times

15 D ual Flywheel: The performance appraisal program implemented for management includes the performance flywheel and the long-term capability flywheel.

< 84 85 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

2025 SANY Heavy Industry Employee Training Performance Employee Benefits

In 2025

Average training hours per employee Percentage of employees trained Training expenditure SANY Heavy Industry is committed to building a comprehensive and competitive employee benefits system. On the basis of strict

140.56 94.60 33 compliance with national laws and regulations and full contribution to the mandatory five social insurance and one housing % RMB million fund the Company continues to enrich non-salary benefits and has formulated the Employee Benefits Management System

systematically providing diversified benefits centered on health care and life support to effectively enhance employees' sense of

well-being and organizational identity strengthen corporate cohesion and reinforce the driving force for sustainable development.Number of employees trained by gender Number of employees trained by job level

23334 SANY Heavy Industry Employee Benefits System in 2025

16

20275

Benefits Category Specific Content

Major life affair W hen major personal events occur such as birthdays marriage childbirth funerals or serious illnesses involving the 6437

benefits employee or the employee's immediate family members the employee may independently apply for congratulatory

3598 or condolence payments.

220

Paid leave on March 1st I n addition to providing paid annual leave the Company grants employees one extra day of paid leave on March 1 each year.Male Female Senior Middle Junior

management management employees Festival gifts I n accordance with the Festival Materials Distribution Standards the Company distributes holiday gifts to employees ahead of traditional festivals such as the Spring Festival Dragon Boat Festival and Mid-Autumn Festival.Number of hours of training per employee by gender Number of hours of training per employee by job level

Meal subsidies or free In accordance with the High Position Restaurant Dining Management Measures the Company provides free dining

140.20 142.85 145.30 139.25 restaurant services to eligible employees and a monthly meal subsidy to all employees each month. It also pays attention to

120.50 ethnic minority employees by providing halal food.

Allowances The Company provides allowances for business travel and expatriate employees including overseas allowances expatriate allowances and travel subsidies.Male Female Senior Middle Junior

management management employees Health care safeguard T he Company has established emergency channels with multiple hospitals equipped the industrial parks with AEDs and other devices and partnered with International SOS to provide global rescue.Education Degree Support

Support through T he industrial parks are equipped with nursing rooms and employee lounges. Nap areas professional work attire

specialized facilities and necessary protective equipment are provided for frontline positions and convenient facilities such as electric

To comprehensively enhance employees' professional competence Highlights vehicle charging stations are also available within the industrial parks.and professionalism and to align with authoritative professional

certifications recognized by the industry the nation and even Convenient life The Company partners with hundreds of merchants to provide exclusive discounts and assists employees in

globally the Company has formulated and continuously improved the services addressing their children's school enrollment needs.Professional Certification Management Measures to guide employees In 2025 I n accordance with the Employee Housing Management Measures the Company provides fully furnished employee

in enhancing their professional capabilities through self-directed Accommodation and apartments in multiple locations that are ready for immediate occupancy.learning and certification examinations nurture a learning organization

Number of new External commuting T he Company provides shuttle services for commuting to industrial parks special vehicles for returning home during and reimburse exam fees for employees who obtain professional

certifications added certifications the Spring Festival a platform for business travel transportation and wedding vehicle services.certifications. This policy applies to all full-time permanent employees.T he Company provides paid parental leave for employees with young children. For children under the age of three

By the end of 2025 about 6200 employees had external certification- 1451 715 employees are entitled to 5 to 10 days of fully paid parental leave per year in accordance with the applicable policies

related needs over the preceding three years among which a total of Family-friendly of their respective regions.

4772 employees obtained certification. Among those certified 3267

Number of employees To date the cumulative support In addition to statutory parental leave required by national law the Company provides more flexible support for achieved their credentials while actively employed by the company of

newly sponsored for number of employees handling family matters pilots flexible working hours and part-time work models regularly organizes parent-child whom 2384 received examination fee reimbursement representing a activities and helps employees balance work and family.reimbursement rate of approximately 73%. further study sponsored by the

Company has reached

Clothing and material I n accordance with the Work Clothing Management Measures the Company provides all employees with free work

The Company has formulated the Administrative Measures for benefits attire and custom suits. High-quality necessary protective equipment is regularly distributed to frontline employees

Sponsoring Outstanding Employees for Further Study to support 20 289 and a variety of welfare materials are made available for purchase through an internal platform.outstanding employees in pursuing further studies at higher education

institutions and obtaining higher-level academic degrees so as to 16 Note: Except for employee housing which is subject to application based on the employee's work location all other benefits are available to all employees

enhance job competence and development potential. including full-time staff and long-term outsourced personnel.< 86 87 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Employee Care Employee Communication

SANY Heavy Industry has established a normalized employee care mechanism that includes support for employees in need and SANY Heavy Industry has established a sound system of workers and staff congress and labor unions to effectively uphold workers'

recreational activities to enhance employees' sense of belonging and organizational cohesion. In 2025 the Company conducted a rights to information participation expression and supervision while continuously safeguarding employees' rights and interests

cumulative total of 139 employee care initiatives with a total investment of over RMB 10.59 million. in collective consultation. The Company attaches great importance to communication and exchanges with employees and has

established multiple management protocols including the Rationalization Proposal Management Standard and the Chairman's

Mailbox Complaint Management System. It has also set up a working team for internal coordinated governance built a coordination

Support for employees in need platform and established the Chairman's Mailbox and Drip Mailbox to systematically carry out the management of employee

suggestions and opinions. Meanwhile the Company has formulated the Suggestion/Complaint Management Measures for Overseas

Employees further improving the communication mechanism for employees under globalization.The Company has established a sound employee support mechanism. In 2025 the Company provided assistance to a cumulative total

of 407 employees facing hardship distributing RMB 550000 in relief funds to help them address practical difficulties in their daily lives. 2025 Employee Communication Measures

In addition the company collaborated with internal CPC Party-affiliated public welfare organizations trade unions and the Communist

Youth League to establish a one-stop employee services platform continuously improving the effectiveness and responsiveness of Scope of Coverage Specific Measures

employee support.Regularly organize employee symposiums continuously operate online platforms such as the

Featured cultural activities "Voice Community" respond promptly to employee needs through multiple channels and safeguard employees' legitimate rights and interests in accordance with the law.All employees

In 2025 the Company organized 902 cultural and sports activities in a rich variety of forms throughout the year covering holiday C onduct monthly service satisfaction questionnaire surveys covering six major modules:

celebrations parent-child activities cultural and sports competitions free traditional Chinese medicine consultations employee dining accommodation office environment shuttle services administrative digital systems

wedding banquets and singles networking events. At the same time the Company regularly conducted mental health lectures and and administrative activities.workplace stress management activities to help employees balance work and life. By organizing regular meetings annual conferences cultural workshops and other activities

Overseas business the Company systematically carries out cross-cultural communication and team building to

Case? ? "Little Migratory Birds" Employee Parent-Child Activity promote understanding mutual trust and efficient collaboration among employees from

different cultural backgrounds globally.In 2025 the Company organized the "Little Migratory Birds" parent-

child activity for employees a program that brought together a SANY Heavy Industry attaches great importance to employees' experience and perceptions in both work and life. Each year

Peking University alumni experience-sharing session with a series the Company conducts a comprehensive survey centered on employees' service experience covering four major modules:

of hands-on social practice activities. Through role-model guidance accommodation dining office environment and security and access with the aim of providing employees with higher-quality and

and interactive experiences the initiative broadened the horizons more people-oriented service support. In 2025 the overall score for the employee service satisfaction assessment was 95.75. This

of employees' children enriched their summer lives and reflected survey adopted a multi-dimensional coverage mechanism collecting over 6000017 valid evaluations and achieving full coverage of all

the company's genuine care and support for the families and next- current employees.generation development of its workforce.Group photo from the 2025 "Little Migratory Birds"

Employee Parent-Child Activity

Case? ? Employee Sports League

The Company hosted an employee sports league featuring a range

of competitive events including basketball and tug-of-war. The

league drew enthusiastic participation from 18 teams and hundreds

of employees across the group's various business divisions

functional headquarters and subsidiaries. Through the spirit of

athletic competition the event strengthened team cohesion and

fostered a healthy vibrant and positive corporate culture.Group photo from the 2025 Employee Sports League

17 The company conducts multiple questionnaire surveys throughout the year.

< 88 89 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Health and Safety Health and Safety Targets and Performance

Indicator Targets Target Performance

19

SANY Heavy Industry consistently adheres to the occupational health and safety policy of putting people first putting prevention Thousand-person injury rate ＜ 1.53‰ 1.33‰

first prioritizes the health and safety of employees suppliers and other stakeholders and through systematic initiatives such Completion rate of three-level safety education training 100% 100%

as strengthening safety risk management improving the health monitoring mechanism providing adequate safety protection

equipment and enhancing safety training and education comprehensively builds and continues to optimize the occupational The number of occupational disease cases / 0

health and safety management system thereby laying a solid safety foundation for the Company's sustainable operations.Occupational health examination compliance / 100%

Health and Safety Management Health and Safety Performance in 2023-2025

Unit 2023 2024 2025

SANY Heavy Industry strictly complies with the Law of the People's Republic of China on Work Safety and other relevant laws regulations

and international conventions and has established a health and safety management system centered on the HSE Management Manual the Occupational health and safety incidents case 32 69 37

HSE18 Reward and Punishment System and the Occupational Disease Prevention and Control Management System. This system and related

management protocols and policies cover all of the Company's operational scope and business units ensuring that all manufacturing bases Occupational health and safety incident rate % 0.12 0.29 0.13

R&D centers and office locations globally follow unified and standardized health and safety management standards. Occupational disease case 0 0 0

In 2025 the Company revised and issued a series of manuals and management processes covering team safety necessary protective Thousand-person injury rate ‰ 2 1.78 1.33

equipment HSE rewards and penalties and HSE and 6S18 management comprehensively standardizing the management of special

equipment confined space operations and on-site production standards and systematically enhancing safety levels in work areas SANY Heavy Industry has established a systematic safety risk management system. In accordance with the Safety Risk Identification

and capabilities in risk prevention. and Graded Control System the Company has built an organizational structure centered on the safety leadership team clarifying the

rating standards and control requirements from low risks to major risks with a focus on strengthening the identification assessment

Highlights and dynamic control of major risks. By implementing a whole-process management mechanism covering hazard identifications

risk assessments and control graded risk management and risk visualization the Company continuously strengthens its capacity to

prevent production safety risks.In 2025

Hazard Identifications Risk Assessment and Control

Among SANY Heavy Industry's 22 main machine and parts Representing a certification coverage U se the Risk Matrix Method (L·S) or Job Condition Risk

manufacturing subsidiaries a total of rate of

Define the objects and scope of assessment and collect Analysis Method (LECD) and other tools to assess the

10 45.45 the relevant technical data; identified risks;subsidiaries % Identify and analyze major hazards and harmful factors B ased on the principles of feasibility safety and reliability

passed external reviews and obtained the ISO 45001 occupational and determine their specific locations and manifestations. formulate and implement risk management strategies such

health and safety management system certification as engineering and technical measures and management

measures.In addition nine businesses including Ningxiang Heavy Lifting Huzhou Heavy Lifting SOTE Drive Huzhou Loader

Zhongxing Shaoyang Commercial Vehicle Lingang Heavy Machinery and Kunshan Heavy Machinery passed the annual Safety Risk

third-party surveillance audits for ISO 45001/14001. Management Process

Risk Visualization Graded Risk Management

U se different colors on the plant layout to mark the risk Classify safety risks into four levels from high to low

The Company has established a health and safety governance structure with clearly defined powers and responsibilities. The level of each grid forming a color-coded safety map; establish graded control files and designate responsible

Sustainability Committee under the Board is responsible for overseeing the overall H&S strategy and performance the general manager I n conjunction with the emergency evacuation map clearly persons;

assumes ultimate management responsibility and the intelligent manufacturing management department (with HSE functions) has mark escape routes and emergency assembly points to Prepare and dynamically update a graded management

been designated as the dedicated execution body responsible for the implementation and supervision of daily management. improve emergency responses and evacuation efficiency. list covering all risk points.To ensure the effective implementation of the above strategy the Company has systematically established a management system

for health and safety performance objectives. This system covers key indicators such as the thousand-person injury rate and the In stakeholder safety management the Company has established the Stakeholder Safety Management System to regulate the conduct

incidence rate of occupational diseases and also incorporates contractors' performance. Coordinated by the Intelligent Manufacturing of stakeholders within the Company's operating areas. By signing the 5S+ Safety Management Agreement stakeholders are required

Headquarters-HSE Management Office the system is implemented on the front line of operations by the HSE offices of each business to comply with health safety and environmental standards in order to reduce potential risks during operations. The Company

unit. Performance results are directly linked to the compensation of responsible persons at all levels including senior executives and implements whole-process safety management for stakeholders including pre-entry basic safety training regular inspections and

accountability is further strengthened through a regular review mechanism. hazard identifications by business units on-site supervision of high-risk operations and regular safety coordination meetings. In

addition the Company has innovatively applied a digital information platform to record and track stakeholders' safety data throughout

the entire process thereby systematically managing the safety risks of the supply chain.

18 H SE Management System: Refer to Section 3.2 Environmental Management in Chapter 3 of this report. 19 Thousand-Person Injury Rate (‰ ): Calculated as (Number of work-related injury cases / Total number of employees) × 1000. The number of work-related injury

cases refers to the sum of minor injuries severe injuries and fatalities caused by work.< 90 91 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Stakeholder Health and Safety Assurance Measures Occupational Health and Safety Assurance Measures

Ensure that all short-term contract workers temporary staff and interns sign employment contracts and

complete tiered safety training; Occupational Disease Prevention

Employees

P ersonnel engaged in specialized tasks and operators of special equipment must hold valid appropriate

certifications before onboarding. For new altered or expanded projects the Company strictly implements the occupational health "simultaneous

consideration20" protocols and carries out the design assessment and acceptance of occupational disease protection

facilities.Require suppliers to provide safety education to their operational personnel and provide necessary

labor protection supplies;

Suppliers Standard Operational Protocols

Clarify suppliers' safety responsibilities and enter into the 5S+ Safety Management Agreement and

Assessment Rules with a signing rate of 100%.Employees are required to strictly observe labor discipline safety regulations and safety operating procedures.C onduct qualification reviews to ensure that certified operators for specialized tasks and equipment are Health and Safety Risk Assessments

Project mandatory;

Contractors R equire strict compliance with the Company's safety environmental protection and fire safety protocols Risk assessments are conducted by trained specialized teams with employees or their representatives participating in

and participation in corresponding health and safety training. the assessment process and it is explicitly stipulated that employees have the right to refuse work that endangers life or

health.V erify all necessary qualifications;

Provision of a Safe Environment

Leasing Units

Inform them of potential hazards on the leased premises and the Company's safety environmental The Company provides employees with a healthy and safe workplace and living environment ensuring that drinking

protection and fire safety management protocols. water sanitation fire protection lighting and ventilation at the workplace meet legal standards and continuously

reducing environmental risks on the basis of compliance.Permanent Incorporate them into the Company's unified safety management system and regularly carry out safety Safety Equipment Provision

Stakeholders education and periodic safety audits.Based on job characteristics and working conditions the Company provides employees with labor protection supplies

that meet national standards.Official/

Government The corresponding reception department is responsible for providing safety briefings and necessary training. Health Screenings

Personnel

The Company regularly organizes health screenings provides employees exposed to occupational hazards with

occupational health examinations before during and after employment and establishes individual health records for

each person.Occupational Health

Psychological Support

SANY Heavy Industry has established a comprehensive occupational health safeguard system covering occupational disease prevention

standardized operations risk identifications safe workplace development labor protection and health surveillance effectively

preventing occupational health risks. In 2025 all affiliated businesses strictly complied with the Law of the People's Republic of China The Company implements the Employee Assistance Program (EAP) and engages specialized institutions to provide

on Prevention and Control of Occupational Diseases and the Provisions on Occupational Health Management in the Workplace carried employees with psychological consultation and counseling services.out monitoring of occupational hazards and arranged for employees in frontline positions exposed to occupational hazards to undergo

occupational health examinations before onboarding during employment and upon departure in accordance with regulations.Throughout the year no excessive occupational hazards or occupational contraindications were identified. Meanwhile the Company also

paid close attention to employees' mental health by providing free psychological support to all employees helping them properly cope

with pressures and emotional challenges in work and life and comprehensively safeguarding employees' physical and mental health. 20 Three Simultaneities: Occupational health protection measures shall be designed constructed and put into production and use simultaneously.< 92 93 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Safety Culture Development Safety Training

In 2025 the Company continued to optimize its safety training system and carried out health and safety training in various forms

SANY Heavy Industry regards employees' safety awareness and skills as the core process for safeguarding safe production continually including three-level safety training HSE special training pre-shift safety meetings safety training on the "Four New" (new processes

improves its training system and continually enhances the entire workforce's safety competence and risk prevention capabilities technologies equipment and materials) and safety training for work resumption and job transfer. During the year it organized

through a combination of assessment and incentive mechanisms thereby effectively strengthening the defense for safe production. 202837 participants in health and safety-related training with cumulative training hours reaching 365478 hours21. At the same time

the Company organized work safety responsibility exams reaching 25000 participants with a passing rate of 100%; all personnel who

Emergency Drills did not pass were arranged for retraining and supplementary exams until they qualified.In accordance with the Emergency Preparedness and Response Management System the Company has systematically established 2025 SANY Heavy Industry Safety Training

an emergency management mechanism covering risk identifications territorial management integrated coordination and dynamic

management. In light of different types of accidents and the characteristics of various workplaces the Company has formulated

corresponding special emergency plans and on-site response plans to ensure that emergency responses are scientific and efficient.At the same time the Company continues to strengthen emergency supply reserves and building teams and regularly organizes Internal External

emergency drills including one comprehensive plan drill and one special drill each year as well as one on-site response plan drill

every six months effectively enhancing the emergency capabilities of all employees and preventing mitigating and controlling the

harm caused by unexpected incidents to the greatest extent possible. Onboarding Training Certification Training

All employees must complete no less than 4 hours of Relying on the HSE digital platform the Company has

Case? ? Fire Emergency Evacuation Drill onboarding safety special training and pass an exam. established and dynamically maintained a certification

Three-Level Safety Training list to ensure that 100% of relevant personnel

Across the Company workshop and team training complete external training and obtain certification.In 2025 SANY Heavy Industry actively carried out themed safety awareness levels safety education totaling no less than 24 hours Expert Training

initiatives such as "Work Safety Month" and "Fire Safety Day" while organizing was carried out. External experts including local administrative law

extensive emergency drills across its business units. Among them SANY Pump

On-The-Job Safety Training enforcement departments and members of safety & Road Machinery Lianyuan Company conducted a fire emergency evacuation expert pools are invited to carry out safety and

drill that simulated real-life fire scenarios systematically testing the effectiveness Annual safety training plans are formulated and

of emergency response plans the responsiveness of emergency teams and theme training is conducted every month covering

health topic training in diverse forms and with rich

content.employees' evacuation and self-rescue capabilities. Throughout the year the mechanical injuries electrical safety confined

Company conducted a total of 44 emergency drills for various safety incidents. spaces fire prevention occupational health and

These initiatives not only enhanced employees' emergency preparedness On-Site Fire Emergency Evacuation other topics.and safety awareness but also received recognition from local government Drill at Hunan Sanyi Huayuan

authorities. Machinery Co. Ltd. in 2025

Case? ? "Work Safety Month" Campaign

21

During the 24th National "Work Safety Month" the Chairman personally directed As the statistical criteria were adjusted and training implementation efforts were intensified this year the relevant data has changed significantly compared to previous years.and deployed the initiative with the requirements of "enhanced planning high-

standard execution and comprehensive coverage." All 35 industrial parks across the

Group actively responded to the national call and organized a themed campaign —

"Everyone Talks Safety Everyone Knows Emergency Response: Identifying Safety

Hazards Around Us." A series of activities covering the entire value chain were carried

out including diversified training sessions emergency drills and safety awareness

programs. A total of 107 sub-venues nationwide simultaneously launched the"Safety "Work Safety Month" Campaign

Commitment Wall" further strengthening safety awareness among all employees and

reinforcing a solid safety foundation for the Company's high-quality development.

<9495>05

Giving Back to Society

to Make First-Class

Contributions

SANY Heavy Industry upholds the philosophy that national

responsibility takes precedence over corporate profits

proactively assuming responsibility in areas such as

philanthropy rural revitalization and social rescue and

conveying corporate warmth through diversified initiatives to

demonstrate its sense of responsibility.Philanthropy

Rural Revitalization

Social RescueSANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Philanthropy

We have built a public welfare practices system guided by "scientific public welfare" transforming care into concrete social action The Company actively fulfills its social responsibility and strives to improve the accessibility of primary-level medical care and health

and creating a positive cycle in which the Company and employees jointly promote social harmony and progress. services. In 2025 the Company continued to support the development of an integrated online and offline community health support

system promoted housing safety renovations for families in need and funded the construction of community public welfare canteens

thereby giving back to society in tangible ways through health support living environments and basic livelihood protection.Public Welfare Events Case? ? Establishing a Medical and Elderly Care Service Center for Seniors

SANY Heavy Industry focuses on topics such as green low-carbon initiatives and community co-development. Through a combination The SANY Foundation's rural revitalization initiative addresses the aging population in Daotong Village by continuously

of cash donations and material donations it maintains long-term cooperation with professional nonprofit organizations with a focus advancing an integrated elderly care model that combines "social work + caregiving + smart healthcare." Leveraging the

on promoting flagship projects with broad impact such as Tinker Education venture philanthropy and technical rescue. We have established medical and elderly care service center the project has created health records for more than 600 elderly residents

established employee volunteer mechanisms and carried out activities such as book donations for education and disability assistance and delivered over 20000 instances of services throughout the year including health management and daytime care. To further

through both online and offline platforms continually enhancing employees' cohesion and the culture of public welfare. In 2025 the enhance elderly care services the project developed and implemented the Home-Based Elderly Care Service Center Operations

Company further promoted its public welfare initiatives toward diversified specialized and international development. Manual and the Village Resident Daily Care Guidelines forming a systematic and standardized rural elderly care solution.Highlights

In 2025

The Company donated approximately Total over the years to more than Organized a total of Cumulative total of

RMB 22.36million RMB360million 129 5964

to various social welfare and public public welfare volunteer hours

interest funds activities

The Company actively carried out ecological initiatives such as afforestation and wetland protection and promoted daily environmental

protection awareness campaigns such as "low-carbon step donations" and "idle markets." In 2025 the Company continued to organize Daotong Village Medical and Elderly Care Service Center

parent-child nature education activities such as "SANY Nature Weekend." By integrating the distinctive features of industrial parks in

different regions it combined environmental protection education with family interaction to expand the impact of public welfare.Case? ? "Walk Together" Sports Charity Campaign

Volunteer Activities

In September 2025 SANY Heavy Industry joined hands with WeChat Sports to launch the "Walk

Together" sports charity campaign bringing together 60 running groups nationwide 3200 Adhering to the philosophy of "Scientific Public Welfare" SANY Heavy Industry has built the "SANY Public Welfare" digitalized platform

employees and members of the public to participate and practice a low-carbon philosophy and established a standardized volunteer service system providing employees with easy access to volunteering. The platform supports

through a healthy lifestyle. During the event a cumulative total of 300 million steps was employees in registering online participating in events flexibly and recording hours of public welfare service effectively stimulating

donated which was converted into RMB 30000 in public welfare funds and fully matched as enthusiasm for participation.a donation to the red cross society of China's "disaster preparedness disaster relief hardship

relief" program. Through concrete actions the company conveyed the value of green public

welfare and demonstrated its corporate social responsibility.A s of December 31 2025 the "SANY Public Welfare" platform had 28658 registered volunteers established 62

Employees participated During the event a cumulative total of Converted into volunteer teams conducted 129 public welfare events in 23 cities nationwide and recorded a cumulative 11205.7

3200 300million steps RMB30000 hours of volunteer service.

was donated in public welfare funds "Walk Together" Public During the reporting period our employee volunteer engagements reached 1860 participant with beneficiaries

Welfare Event reaching 2926 person.< 98 99 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

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Rural Revitalization

SANY Heavy Industry actively responds to the nation’s rural revitalization strategy focusing on people's livelihood governance

talent and industrial development and explores effective pathways for public welfare to support sustainable rural development. Industrial Revitalization

We leverage local resource advantages explore innovative industrial development models and stimulate rural economic vitality. Through

targeted measures we promote industrial transformation and upgrading and provide strong support for sustainable rural development.Cultural Revitalization

Case? ? Supporting Innovation in Ecological Agriculture

SANY Heavy Industry takes cultural revitalization as a key priority. By supporting rural cultural activities it promotes traditional culture

and enhances the cohesion and creativity of rural communities. At the same time the Company adheres to the philosophy of sports-

tourism integration uses sports to empower rural areas promotes the coordinated development of culture sports and tourism SANY Heavy Industry's rural revitalization initiatives advanced ecological agriculture innovation by improving 158 mu

injects new vitality into rural areas and strengthens cultural confidence. of abandoned farmland through cultivation methods that use zero chemicals and successfully delivered high-value

agricultural products such as five-color brown rice and white strawberry varieties. This not only expanded market space

Case? ? Sports-Tourism Integration Supports a New Rural Outlook but also helped more than 40 low-income households achieve steady income growth. The project has cumulatively created 64 jobs effectively unlocking the economic potential of dormant rural land and providing a replicable practical model for

the sustainable development of rural industries.In 2025 SANY Heavy Industry supported the hosting of the "Village Ba" championship finals for the Hunan division at the

Meijiang national scenic area in Lianyuan city Hunan province China blending the excitement of sports with natural

wonders. The event attracted more than 100000 on-site participants and online attention across the internet exceeded Educational Revitalization

300 million views significantly enhancing the influence of local culture and strengthening community cohesion and

cultural confidence. The Company takes educational facilities teaching staff and curriculum systems as focal points to build a multidimensional education

support system and promote the extension of high-quality resources to rural areas.Case? ? Inspiring Children's Engineering Thinking

In 2025 SANY Heavy Industry continued promoting the "Wala Wala explorer education" project and deepened the building of

the engineering enlightenment curriculum system. Throughout the year the spring and autumn courses and summer camp

attracted a total of 600 teacher applications to offer classes cumulatively reaching more than 24700 students. The average

course assessment score reached 9.06 teacher training satisfaction reached 9.30 and the student course completion rate

reached 93.90% effectively supporting the cultivation of scientific literacy and engineering thinking among rural children.In 2025

Throughout the year the spring and autumn

courses and summer camp attracted a total of

600

teacher applications to offer classes

Cumulatively reaching more than

24700students

"Village Ba" championship Children's Engineering Thinking Course Site

< 100 101 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

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Social Rescue

SANY Heavy Industry actively engages in social rescue initiatives. Leveraging its technology strengths it has innovatively

developed a "human-machine collaboration" rescue mechanism and seeks to establish a professional and efficient emergency Case? ? Rescue Operations for the Typhoon Disaster in Zhanjiang

rescue system. The Company is participating in the formulation of engineering machinery rescue standards supports building

teams for grassroots rescue teams and actively participates in rescue operations for disasters domestically and internationally

in order to enhance the industry's rescue capabilities and the standardization process. Through these practices SANY Heavy In October 2025 a typhoon disaster struck Zhanjiang. Immediately after the typhoon passed through the Company's rescue

Industry's "Engineering Machinery Public Welfare Rescue Response" Project was honored with the title of "Annual Standout team rushed to the site at the earliest possible moment and relying on professional equipment carried out road clearance

Project" at the 2025 charity gala of China Philanthropist. power emergency repairs and other tasks while coordinating with multiple parties to build an efficient collaboration network.In recognition of the rapid response and remarkable results the team received a letter of appreciation from the CPC Zhanjiang

Highlights municipal committee and the office of the Guangdong provincial headquarters for flood drought and typhoon control.In 2025

SANY Heavy Industry's annual length of Engineering machinery Participant

disaster response operations totaled mobilized deployments

51days 32pieces 72

Case? ? Actively Organizing Flood Relief

During the 2025 flood season in the face of flooding disasters across

east China north China and northeast China we responded swiftly

and in coordination with the local government and China Aneng Rescue Site for the Zhanjiang Typhoon Letters of Appreciation From the "CPC Zhanjiang Municipal Committee" and the "Office

group dispatched five team members and five units of equipment of the Guangdong Provincial Headquarters for Flood Drought and Typhoon Control"

to participate in emergency rescue operations completing desilting

supply transport and resident evacuation tasks and assisting

in the evacuation of 35 people. After the disaster we went to

Fengjiayu town Miyun district to carry out epidemic prevention Case? ? Providing Emergency Assistance for the Fire in Tai Po Hong Kong

and disinfection work covering an area of more than 8000 square

meters. The operation received letters of appreciation from partners

and commemorative banners from the local government. In November 2025 following a fire in a public housing estate in Tai Po New Territories Hong Kong the Company swiftly activated its global disaster response mechanism. Through the SANY Foundation we promptly donated Hong KongD 10

million to support emergency relief medical treatment for the injured and post-disaster reconstruction. At the same time

we mobilized energy storage equipment from our Hong Kong operations to support temporary shelters ensuring a stable

emergency power supply. Through these actions we demonstrated our deep concern for affected communities and our

strong sense of social responsibility and rapid response capability.Letter of Appreciation and Commemorative Banner Flood Relief Rescue Site

Rescue Site for the Tai Po Fire in Hong Kong

< 102 103 >SANY Heavy Industry Co. Ltd. Building on Compliance Driving Technological Exploring Low-Carbon Developing a People- Giving Back to Society

2025 Sustainability Report for First-Class Innovation to Deliver Pathways for First- Centered Culture to Foster to Make First-Class

Governance First-Class Products Class Practice First-Class Talent Contributions

Case? ? P roviding Emergency Assistance to the Earthquake-Stricken Areas in Myanmar Case? ? Providing Emergency Assistance for Flood Relief in Indonesia Demonstrating China's Strength

Demonstrating Humanitarian Care

In 2025 a magnitude 7.9 earthquake struck Mandalay Myanmar. SANY Heavy Industry responded swiftly by dispatching In November 2025 severe flooding struck North Sumatra Indonesia. SANY swiftly mobilized 13 units of equipment to support

professional rescue teams and equipment to the epicenter carrying out critical operations including debris clearance road emergency response efforts. The rescue team worked continuously for more than two weeks carrying out operations across 21

restoration and temporary resettlement support. The response was recognized by more than 20 domestic and international villages and completing critical tasks such as river dredging and widening dam repair and the clearance of public infrastructure.media outlets including CCTV and received commendation from the Chinese Embassy in Myanmar demonstrating the These efforts directly benefited 541693 people and helped ensure the accessibility of vital transport routes. The operation

Company’s professional rescue capabilities and strong humanitarian commitment. was covered by nearly 30 international media outlets generating approximately 4.5 million impressions. It received strong

recognition from local authorities and the Red Cross further enhancing the company’s global brand influence and public trust.On-Site Earthquake Rescue Operations in Myanmar

SANY Heavy Industry's Flood Relief Operations in Indonesia

Letter of Appreciation From the Chinese Embassy in Myanmar

< 104 105 >SANY Heavy Industry Co. Ltd. Quantitative Performance Table

2025 Sustainability Report

Quantitative Performance Table Indicator Unit 2025 2024

total energy consumption tce 108461.82 101035.83

Environmental22 comprehensive energy consumption density tce / RMB 1000000 1.21 1.30

Municipal water supply volume tonnes 3946162.73 3103037.00

Indicator Unit 2025 2024 Municipal water supply volume density tonnes / RMB1000000 44.2 39.9

ISO 14001 environmental management system GHG emissions

certification coverage rate % 54.50 54.50 Scope 1: Direct GHG emissions tCO2e 76112.84 69757.62

of major environmental pollution incidents / 0 0 Scope 2: Indirect GHG emissions tCO2e 268893.36 254371.88

Air pollutants Scope 3: Other Indirect GHG emissions tCO2e 60005.99 /

Total waste gas emissions cubic meter 18417283923.48 14044956884.64 ?Category 3 – Fuel- and Energy-Related Activities tCO2e 51742.15 /

SO2 emissions tonnes 2.44 2.10 ?Category 7 – Employee Commuting tCO2e 8263.84 /

NOx emissions tonnes 39.60 33.28 Total GHG emissions (Scope 1 + Scope 2) tCO2e 345006.20 324129.50

VOCs (volatile organic compounds) emissions tonnes 145.20 114.66 GHG emissions intensity (Scope 1 + Scope 2) tCO2e / RMB million 3.87 4.17

Total soot emissions tonnes 83.52 89.10 Packaging material consumption

Water pollutants Packaging material usage tonnes 86998.54 58690.80

Total water discharge tonnes 507953.48 405179.10 Packaging material usage density tonnes / RMB million 1.0 0.8

Biochemical oxygen demand (BOD) kg 5293.52 4681.51

Chemical oxygen demand (COD) kg 35892.56 27149.82

Suspended solids (SS) kg 8941.17 6970.66 Social

Ammonia nitrogen (NH3) kg 4545.77 3793.42

Indicator Unit 2025 2024

Solid waste

Employee overview

Total hazardous waste discharge kg 5904310.00 5123021.10

Total number of employees person 28469 23832

Total general industrial solid waste discharge tonnes 256734.58 156955.45

Number of employees by gender

comprehensive hazardous waste discharge

density kg / RMB 1000000 66.17 65.87 Male person 24665 20731

comprehensive general industrial solid waste Female person 3804 3101

density tonnes / RMB 1000000 2.88 2.02 Number of employees by job level

Energy/resource consumption Senior management person 224 203

Purchased electricity kWh 506772250.19 474043760.50 Middle management person 6805 12270

Gas cubic meter 33255165.20 31045971.00 Junior employees person 21440 11359

Gasoline Liter 4582.00 3450.00 Number of employees by role type

Clean energy (photovoltaic power generation) kWh 77365601.75 76072306.10 Production personnel person 9395 9125

Diesel Liter 1598820.94 998699.00 Sales personnel person 8851 5210

Technical personnel person 5720 5867

Finance personnel person 684 523

22 Administrative personnel person 771 524 This report updates certain 2024 data mainly due to adjustments to the statistical scope and data corrections.

< 106 107 >SANY Heavy Industry Co. Ltd. Quantitative Performance Table

2025 Sustainability Report

Indicator Unit 2025 2024 Indicator Unit 2025 2024

Service personnel person 830 576 Development and training

Management personnel person 2218 2007 Number of employees trained person 26932 27658

Number of employees by age Number of employees trained by gender

Aged 30 and below person 7750 5838 Male person 23334 24213

Aged 31—50 person 19390 17041 Female person 3598 3445

Aged 51 and above person 1329 1004 Number of employees trained by job level

Number of employees by region Senior management person 220 227

Chinese mainland person 21890 19149 Middle management person 6437 14407

Employees from Hong Kong Macao and Taiwan of China person 4 3

Junior employees person 20275 13024

Overseas employees person 6575 4580

Number of hours of training per employee hour 140.56 147.00

Representation percentage of women in the executive team % 14.3 12

Number of hours of training per employee by gender

Employee turnover rate

Male hour 140.20 119.00

Employee turnover rate by gender

Female hour 142.85 117.00

Male % 7.25 /

Number of hours of training per employee by job level

Female % 9.04 /

Senior management hour 120.50 78.00

Employee turnover rate by job level

Middle management hour 145.30 135.00

Senior management % 5.36 /

Junior employees hour 139.25 117.00

Middle management % 8.52 /

Health and safety

Junior employees % 7.19 /

ISO 45001 occupational health and safety management system certification

Employee turnover rate by employee type coverage % 45.45 45.45

Production personnel % 4.56 / Number of occupational health and safety incidents / 37 69

R&D personnel % 12.62 / Occupational health check-up coverage rate for job positions % 100 100

Business management personnel % 13.66 / Number of cumulative participants in health and safety training person 486516 176441

Others % 6.11 / Total health and safety training hours hour 876438 187076

Employee turnover rate by age

Supply chain management

Aged 30 and below % 10.81 /

Total number of suppliers / 5875 3901

Aged 31-50 % 6.46 /

Number of suppliers by region

Aged 51 and above % 3.24 /

Chinese mainland / 5838 /

Employee turnover rate by region

Hong Kong Macao and Taiwan of China / 4 /

Chinese mainland % 8.53 /

Overseas regions / 33 /

Employees from Hong Kong Macao and Taiwan of China % 0.00 /

Number of suppliers by procurement category

Overseas % 4.03 /

Number of production suppliers (procurement of raw and auxiliary materials) / 2679 1831

< 108 109 >SANY Heavy Industry Co. Ltd. SSE Guidelines Index

2025 Sustainability Report

Indicator Unit 2025 2024 SSE Guidelines Index

Number of non-production suppliers (project procurement) / 3196 2036

Production suppliers by category23

Dimension Number Topic Chapter Index

Number of suppliers of general products / 1280 978

1 Climate change tackling 3.1 Climate change response

Number of suppliers of specialized products / 1979 1247

2 Pollutant discharge 3.3 Ecological protection

Quality management

3 Waste disposal 3.3 Ecological protection

ISO 9001 or IATF 16949 quality management system certification coverage % 100 100

4 Ecosystem and biodiversity protection 3.3 Ecological protection

Research and development (R&D) innovation

Environment

Investment in research and development (R&D) innovation RMB 100 million 51.69 54.88 5 Environmental compliance management 3.2 Environmental management

Number of patent applications during the year / 596 1047 6 Energy usage 3.4 Green development

Number of invention patents filed in the year / 303 623 7 Usage of water resource 3.4 Green development

Number of patents granted during the year / 820 691 8 Circular economy 3.3 Ecological protection 3.4 Green development

Total number of patents granted domestically and internationally / 9517 8977

9 Rural revitalization 5.2 Rural revitalization

Product and services

5.1 Philanthropy

Customer satisfaction % 93.0 87.8 10 Contributions to the society 5.3 Social rescue

Number of complaints for products and services / 1052 810 11 Innovation-driven 2.1 Innovation-driven development

Complaint resolution rate for products and services % 98.4 100 As the Company's business does not involve scientific research

12 Ethics of science and technology technology development or other activities in technology Social welfare ethics-sensitive fields such as life sciences and AI the Company

Investment in public welfare RMB 10000 2236 1816 did not respond to this material topic.Society 13 Supply chain security 2.3 Sustainable supply chain

14 Equal treatment to small and medium-sized enterprises 2.3 Sustainable supply chainGovernance

15 Safety and quality of products and services 2.2 Superior quality

Indicator Unit 2025 2024 16 Data security and customer privacy protection 2.2 Superior quality

Number of risk management training sessions / 33 29 4.1 Compliant employment

17 Employees 4.2 Talent development

Number of participants in risk management training / 2046 1944 4.3 Employee benefits

4.4 Health and safety

Number of participants in integrity and compliance exams per thousand people 3 3

1.2 Risk management

Number of participants in anti-corruption training per thousand people 3 3 18 Due diligence 1.3 Business ethics

Sustainablity-

Percentage of directors trained in business ethics and anti-corruption % 100 100 related 19 Communications with stakeholders Communications with stakeholders

Percentage of management trained in business ethics and anti-corruption % 100 100 governance 20 Anti-commercial bribery and anti-corruption 1.3 Business ethics

Percentage of general employees trained in business ethics and anti-corruption % 100 100 21 Anti-unfair competition 1.3 Business ethics

Signing rate of supplier integrity cooperation agreements/undertakings % 100 100

23 T here may be overlaps in the number of production suppliers across different categories. Therefore the total number of production suppliers is not equal to the

sum of production suppliers counted by category.< 110 111 >SANY Heavy Industry Co. Ltd. HKEX Guidelines Index

2025 Sustainability Report

HKEX Guidelines Index Indicators Details Section Index

B. Social

Aspect B1: Employment

Indicators Details Section Index Information on:

General (a) the policies; andBoard statement Board statement

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 4.1 Compliant employment

Materiality About this report relating to compensation and dismissal recruitment and promotion working hours rest

periods equal opportunity diversity anti-discrimination and other benefits and welfare

Mandatory Quantitative About this report

B1.1 Total workforce by gender employment type (for example full- or part-time) age group and disclosure Balance About this report geographical region 4.1 Compliant employment

Consistency About this report B1.2 Employee turnover rate by gender age group and geographical region 4.1 Compliant employment

Reporting scope About this report Aspect B2: Health and Safety

A. Environmental Information on:

Aspect A1: Emissions General

(a) the policies; and

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 4.4 Health and safety

Information on: relating to providing a safe working environment and protecting employees from occupational

General (a) the policies; and

hazards

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 3.3 Ecological protection Number and rate of work-related fatalities occurred in each of the past three years including the relating to air emissions discharges into water and land and generation of hazardous and non- B2.1 reporting year 4.4 Health and safety

hazardous waste

B2.2 Lost days due to work injury 4.4 Health and safety

A1.1 The types of emissions and respective emissions data 3.3 Ecological protection

B2.3 Description of occupational health and safety measures adopted and how they are

A1.3 Total hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per unit of 3.3 Ecological protection implemented and monitored

4.4 Health and safety

production volume per facility)

Aspect B3: Development and Training

A1.4 Total non-hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per unit of production volume per facility) 3.3 Ecological protection General Policies on improving employees' knowledge and skills for discharging duties at work.disclosure Description of training activities 4.2 Talent development

A1.5 Description of emission target(s) set and steps taken to achieve them 3.3 Ecological protection

B3.1 The percentage of employees trained by gender and employee category (e.g. senior

A1.6 Description of how hazardous and non-hazardous wastes are handled and a description of management middle management)

4.2 Talent development

reduction target(s) set and steps taken to achieve them 3.3 Ecological protection

B3.2 The average training hours completed per employee by gender and employee category 4.2 Talent development

Aspect A2: Use of Resources

Aspect B4: Labor Standards

General

disclosure Policies on the efficient use of resources including energy water and other raw materials 3.4 Green development

Information on:

General (a) the policies; and

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 4.1 Compliant employment

A2.1 Direct and/or indirect energy consumption by type (e.g. electricity gas or oil) in total (kWh in '000s) and intensity (e.g. per unit of production volume per facility) 3.4 Green development relating to preventing child and forced labor

A2.2 Water consumption in total and intensity (e.g. per unit of production volume per facility) 3.4 Green development B4.1 Description of measures to review employment practices to avoid child and forced labor 4.1 Compliant employment

A2.3 Description of energy use efficiency target(s) set and steps taken to achieve them 3.4 Green development B4.2 Description of steps taken to eliminate such practices when discovered 4.1 Compliant employment

Description of whether there is any issue in sourcing water that is fit for purpose water efficiency Aspect B5: Supply Chain ManagementA2.4 target(s) set and steps taken to achieve them 3.4 Green development

A2.5 Total packaging material used for finished products (in tonnes) and if applicable with reference

General

3.4 Green development disclosure Policies on managing environmental and social risks of the supply chain

2.3 Sustainable supply

to per unit produced chain

Aspect A3: The Environment and Natural Resources

B5.1 Number of suppliers by geographical region 2.3 Sustainable supply 3.2 Environmental chain

General

disclosure Policies on minimising the issuer's significant impacts on the environment and natural resources

management

3.3 Ecological protection B5.2 Description of practices relating to engaging suppliers number of suppliers where the practices 2.3 Sustainable supply

3.4 Green development are being implemented and how they are implemented and monitored chain

3.2 Environmental B5.3 Description of practices used to identify environmental and social risks along the supply chain 2.3 Sustainable supply

Description of the significant impacts of activities on the environment and natural resources and management and how they are implemented and monitored chainA3.1 the actions taken to manage them 3.3 Ecological protection

B5.4 Description of practices used to promote environmentally preferable products and services when 2.3 Sustainable supply 3.4 Green development selecting suppliers and how they are implemented and monitored chain

< 112 113 >SANY Heavy Industry Co. Ltd. GRI Index

2025 Sustainability Report

Indicators Details Section Index Indicators Details Section Index

Aspect B6: Product Responsibility Climate resilience 3.1 Climate change response

Information on: Strategy

General (a) the policies; and 3.1 Climate change

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 2.2 Superior quality

Financial impact of climate-related risks and opportunities response

relating to health and safety advertising labelling and privacy matters relating to products and

services provided and methods of redress. Risk

Management Risk management

3.1 Climate change

response

During the reporting period

B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons the Company had no such Greenhouse gas emissions 3.1 Climate change

incidents response

B6.2 Number of products and service related complaints received and how they are dealt with 2.2 Superior quality Climate-related transition risks 3.1 Climate change response

B6.3 Description of practices relating to observing and protecting intellectual property rights 2.1 Innovation-driven development Climate-related physical risks 3.1 Climate change response

B6.4 Description of quality assurance process and recall procedures 2.2 Superior quality

3.1 Climate change

B6.5 Description of consumer data protection and privacy policies and how they are implemented

Climate-related opportunities

2.2 Superior quality responseand monitored

Capital operation 3.1 Climate change Aspect B7: Anti-Corruption Metrics and response

Information on: Targets 24 3.1 Climate change

General (a) the policies; and Internal carbon pricing response

disclosure (b) compliance with relevant laws and regulations that have a significant impact on the issuer 1.3 Business ethics

relating to bribery extortion fraud and money laundering. Compensation 3.1 Climate change response

B7.1 Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases 1.3 Business ethics Industry indicators 3.1 Climate change response

B7.2 Description of preventive measures and whistle-blowing procedures and how they are implemented and monitored 1.3 Business ethics Climate-related goals 3.1 Climate change response

B7.3 Description of anti-corruption training provided to directors and staff 1.3 Business ethics

Aspect B8: Community Investment Cross-industry indicators and applicability of industry indicators

3.1 Climate change

response

General Policies on community engagement to understand the needs of the communities where the

disclosure issuer operates and to ensure its activities take into consideration the communities' interests 5.1 Philanthropy

B8.1 Focus areas of contribution (e.g. education environmental concerns labour needs health culture sport) 5.1 Philanthropy

B8.2 Resources contributed (e.g. money or time) to the focus area 5.1 Philanthropy

D: Climate-related Disclosures

Governance Governance 3.1 Climate change response

Climate-related risks and opportunities 3.1 Climate change response

Business model & value chain 3.1 Climate change response

Strategy

Strategies and decisions 3.1 Climate change response

Financial position financial performance and cash flows 3.1 Climate change response

24 T he Company currently does not apply an internal carbon pricing mechanism in its decision-making.

< 114 115 >SANY Heavy Industry Co. Ltd. GRI Index

2025 Sustainability Report

GRI Index Indicators Section Index

102-50 Reporting period About this report

102-51 Date of most recent report About this report

Indicators Section Index

102-52 Reporting cycle About this report

GRI 102

102-53 Contact information for questions regarding the report About this report

102-1 Organization name About this report

102-54 Statement of use of the GRI Standards About this report

102-2 Activities brands products and services About this report

102-55 GRI content index GRI index

102-3 Headquarters location Company profile

102-56 External assurance /

102-4 Business location Company profile

GRI 201: Economic Performance

102-5 Ownership and legal form About this report

Management approach disclosure Sustainability management

102-6 Markets served Company profile 201-1 Direct economic value generated and distributed Sustainability management

102-7 Organizational scale Company profile 201-2 Financial implications and other risks and opportunities due to climate change 3.1 Climate change response

102-8 Information on employees and other workers 4.1 Compliant employment GRI 203: Indirect Economic Impacts

102-9 Supply chain 2.3 Sustainable supply chain 　 Management approach disclosure Sustainability management

102-10 Significant changes in the organization and its supply chain About this report 203-1 Infrastructure investments and services supported Sustainability management

102-11 Precautionary principle/approach About this report 203-2 Significant indirect economic impacts Sustainability management

102-12 External initiatives About this report GRI 204: Procurement Practices

102-13 Association membership Company profile 　 Management approach disclosure 2.3 Sustainable supply chain

102-14 Statements from senior decision-makers Board statement 204-1 Proportion of spending on local suppliers /

GRI 205: Anti-Corruption

102-16 Values principles standards and codes of conduct Company profile

205-1 Operations assessed for risks related to corruption 1.3 Business ethics

102-18 Governance structure 1.1 Corporate governance

205-2 Communication and training about anti-corruption policies and procedures 1.3 Business ethics

102-40 List of stakeholder groups Stakeholder communication

205-3 Confirmed incidents of corruption and actions taken 1.3 Business ethics

102-41 Collective bargaining agreement /

GRI 302: Energy

102-42 Identification and selection of stakeholders Impact materiality assessment

Management approach disclosure 3.4 Green development

102-43 Stakeholder engagement policy Impact materiality assessment 302-1 Energy consumption within the organization 3.4 Green development

102-44 Key topics and concerns raised Stakeholder communication 302-2 Energy consumption outside of the organization 3.4 Green development

102-45 Entities included in the consolidated financial statements About this report 302-3 Energy intensity 3.4 Green development

102-46 Defining report content and topic boundaries About this report 303-4 Reduction of energy consumption 3.4 Green development

102-47 List of material topics Material topic identification 303-5 Reductions in energy requirements of products and services 3.4 Green development

102-48 Restatements of information About this report GRI 305: Emissions

102-49 Changes in reporting About this report Management approach disclosure 3.3 Ecological protection

< 116 117 >SANY Heavy Industry Co. Ltd. GRI Index

2025 Sustainability Report

Indicators Section Index Indicators Section Index

305-1 Direct (Scope 1) GHG emissions 3.4 Green development GRI 413: Local Communities

305-2 Energy indirect (Scope 2) GHG emissions 3.4 Green development Management approach disclosure

305-4 GHG emissions intensity 3.4 Green development Operational sites with actual or potential significant adverse impacts on local During the reporting period 413-2 communities the Company recorded no such

305-6 Emissions of ozone-depleting substances (ODS) 3.4 Green development incidents.

305-7 Emissions of nitrogen oxides (NOX) sulfur oxides (SOX) and other significant air

GRI 416 Customer Health and Safety

emissions 3.3 Ecological protection

Management approach disclosure 2.2 Superior quality

GRI 306: Effluents and Waste

416-1 Assessment of health and safety impacts of product and service categories /

Management approach disclosure 3.3 Ecological protection

During the reporting period

306-1 Total water discharge by quality and destination 3.3 Ecological protection 416-2 Incidents of non-compliance with health and safety impacts of products and services the Company recorded no such

incidents.

306-2 Total waste by type and disposal method 3.3 Ecological protection

306-3 Major leaks Not applicable

306-4 Transportation of hazardous waste 3.3 Ecological protection

306-5 Water bodies affected by discharges and/or runoff Not applicable

GRI 307: Environmental Compliance

Management approach disclosure 3.2 Environmental management

307-1 Non-compliance with environmental laws and regulations 3.2 Environmental management

GRI 401: Employment

Management approach disclosure 4.1 Compliant employment

401-1 New employee hires and employee turnover rate 4.1 Compliant employment

GRI 403: Occupational Health and Safety

Management approach disclosure 4.4 Health and safety

403-1 Worker representatives in joint labor-management health and safety committee 4.4 Health and safety

403-2 Categories of work-related injuries injury rates occupational diseases lost Health and safety quantitative workdays absenteeism and other related ratios performance table

403-3 Workers engaged in occupations with high incidence or high risk of occupational diseases 4.4 Health and safety

403-4 Health and safety issues in formal union agreements /

GRI 404 Training and Education

Management approach disclosure 4.2 Talent development

404-1 Average hours of training per employee per year 4.2 Talent development

404-2 Employee skills improvement and transition assistance programs 4.2 Talent development

GRI 405 Employee Diversity and Equal Opportunity

Management approach disclosure 4.1 Compliant employment

405-1 Diversity of management and employees 4.1 Compliant employment

<118119>