Environmental Social and

Governance Report

Luen Mei Quantum Co. Ltd.024-23784835

www.luenmeilz.com

Luen Mei Quantum Co. Ltd.Address: No. 1 Yuanhang Middle Road Hunnan New District Shenyang City

Postal Code: 110179About the Report Reporting Period

The time span of the Report is from January 1 2025 to December 31 2025 (hereinafter referred to as the "reporting period"). Considering the

This is the 2025 Environmental Social and Governance (ESG) Report (hereinafter referred to as the "Report") released by Luen Mei Quantum Co. continuity and comparability of disclosed information some content may involve historical data comparisons or extensions.Ltd. (hereinafter referred to as "Luen Mei Quantum" the "Company" or "we"). It aims to systematically present the Company's philosophies prac-

tical progress and phased achievements in environmental protection social responsibility corporate governance and sustainable development

management. The Company hopes to further strengthen communication with stakeholders such as shareholders clients employees govern-

ments and regulatory agencies partners and community public through the Report. It also seeks to continuously enhance the transparency and Release Period

readability of information disclosure address concerns from various parties and demonstrate the Company's management actions and perfor-

The Report is an annual publication and constitutes the seventh Environmental Social and Governance (ESG) report issued by the Company.mance in sustainable development in a more pragmatic manner.Organizational Scope Information Description/Data Sources

Unless otherwise specified the scope of the Report is consistent with that of the consolidated statement of the Company's 2025 Annual The information and data cited in the Report are derived from the Company's official documents statistical reports financial reports and

Report covering the Company and its subsidiaries. other materials all of which have been reviewed by relevant departments of the Company. Unless otherwise specified financial data in the

Report is presented in Renminbi (RMB) as the bookkeeping currency.Description of Reference Reference Standards/Basis of Compilation

In the Report unless the context otherwise requires the following terms shall have the meanings set out below: United Nations Sustainable Development Goals (SDGs);

?GRI Standards issued by the Global Reporting Initiative;

Luen Mei Quantum Luen Mei Quantum Co. Ltd. Shenshuiwan Clean Energy Shenyang Shenshuiwan Clean Energy Co. Ltd. ?Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (Trial);

Luen Mei Group Luen Mei Group Co. Ltd. Guorun Low-carbon Shenyang Guorun Low Carbon Thermal Power Co. Ltd. ?Guidance No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies — Preparation of Sustainability Report (Revised in January

Luen Mei Smart Luen Mei Smart Energy Technology (Shenyang) Co. Ltd. Fulin Thermal Shandong Heze Fulin Thermal Technology 2026);Co. Ltd.Lianzhong New Energy Lianzhong New Energy Co. Ltd.

366 Mobile Internet 366 Mobile Internet Technology Co. Ltd. ?Guidelines on Environmental Social and Governance Reporting for Chinese Enterprises (CASS-ESG 6.0) – General Framework.

Hunnan Thermal Refers Shenyang Hunnan Thermal Co. Ltd. Refers

to Mega-info Media to Mega-info Media Co. Ltd.Xinbei Thermal Power Shenyang Xinbei Thermal Power Co. Ltd.Huaxin Luen Mei Shenyang Huaxin Luen Mei Assets Management Co. Ltd.Guohui New Energy Guohui Environmental Protection New

Access to the Report

Energy Co. Ltd. Lianrong Commercial Tianjin Lianrong Commercial Factoring

Factoring Co. Ltd. The Report is published in both Chinese and English versions. Electronic versions can be accessed and downloaded from the Shanghai Stock

Guoxin New Energy Shenyang Guoxin Environmental Protection New Energy Co. Ltd. Exchange website (https://www.sse.com.cn/) and the Company's official website (http://www.luenmeilz.com/). In case of any ambiguity in Heli Heating Shenyang Heli Heating Co. Ltd.the understanding of the two language versions the Chinese version shall prevail.Luen Mei Bioenergy Jiangsu Luen Mei Bioenergy Co. Ltd.Establishing Rules Connecting Key Performance Indicators 55

Message from the Chairman 01 for Sound Households

Governance and Stability and Sharing Harmony Indicator Index 58

About Luen Mei 03

Standardizing corporate governance

Company Profile 03 17 Driving Transformation Through Innovation 37 Feedback Form 64

Organizational Structure 04 Business compliance Management 19 Upholding Excellence in Quality Control 38

Development History 05 Upholding business ethics 20 Enhancing Service Experience 41

Business Strategy 07 Protecting investors' interests and rights 21 Cultivating a Sustainable Supply Chain 42

Corporate Culture 08

Safeguarding Employee Rights and Well-being 43

Honors in 2025 09

Advancing Social Harmony and Community Co-construction 53

ESG Management 11 Caring for Ecology

ESG Management Structure 11 Nurturing All Life

Communication with Stakeholders 12

Analysis of Material Topics 13

Climate Change Response 25

Strengthening Environmental Management 29

Optimizing Resource Utilization 32Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Message from the Chairman

Message from the Chairman

The times move forward and our responsibility persists. Standing at the developmental juncture of 2025 and looking back Luen Mei Responding to Expectations of All Parties through Responsible Operations

Quantum has consistently placed the development of the enterprise within the broader context of national strategy industry transforma- The development of an enterprise is inseparable from the support of all sectors of society. The value of an enterprise is reflected not

tion and societal needs for contemplation and advancement. Continuously revolving around the value proposition of "Connecting to the only in operational results but also in its continuous responsibility towards customers employees partners and the public. In 2025 the

Future Making Life Beautiful" we have coordinated green development stable operations technological innovation and social responsibil- Company continued its work focusing on key issues such as heating service quality customer appeal response employee growth and care

ity continuously solidifying our foundation and accumulating momentum on the path of sustainable development. supply chain collaboration and integrity and compliance in operations. By refining service mechanisms improving complaint handling

Over the past year the external environment remained complex and volatile. The interplay of energy structure adjustment green and efficiency strengthening employee training and occupational health and safety management optimizing procurement and cooperation

low-carbon transition escalating regulatory requirements and heightened stakeholder expectations presented both challenges and oppor- processes and reinforcing legal and compliance development we promoted the formation of a more stable credible and sustainable oper-

tunities. In the face of these changes Luen Mei Quantum continued to stay grounded in our main business and focus on the real economy. ational ecosystem.Guided by the principles of clean efficient smart and low-carbon development we persistently advanced the quality and efficiency

improvement of our core heating and energy supply business steadily enhanced corporate governance effectiveness strengthened com-

pliance operations and risk management and endeavored to integrate sustainable development requirements into the entire process of Ensuring Steady Progress through Governance Enhancement

enterprise management and operations.Governance capability is a crucial support for enterprises to navigate cycles and achieve long-term development. Luen Mei Quantum

upholds standardized governance science-based decision-making risk prevention and information disclosure as fundamental pillars for

its sustainable development continuously promoting the synergistic enhancement of board governance mechanisms internal control sys-

tems IT infrastructure and ESG management. In 2025 the Company deepened its work in areas such as standard governance operations

financial internal control optimization investor communication and ESG coordination management continuously strengthening its gover-

nance transparency and the ability to fulfill its responsibilities. During the reporting period the Company was honored with the title of

Building Long-term Competitiveness through Green Development

"Excellent Sustainable Development Practice Case for Listed Companies" and was selected for the "China's Top 500 Energy Enterprises"

Green and low-carbon development is not an optional extra but a required answer for the high-quality development of an enterprise. list demonstrating full recognition from the capital market and the industry for the effective results of the Company's governance.Luen Mei Quantum is well aware that as a significant participant in the comprehensive energy sector it is imperative to integrate the con-

cept of green development into the entire process of strategic planning project construction production operations and service enhance- Looking ahead Luen Mei Quantum will continue to uphold a long-term perspective and maintain a strategic focus. Based on our indus-

ment. In 2025 the Company continued its efforts in energy conservation and consumption reduction clean energy supply environmental trial foundation and resource endowment we will persistently advance the green and low-carbon transition enhance service and manage-

protection management and efficient resource utilization. Positive progress was achieved in areas such as boiler efficiency improvement ment standards deepen technological and digital empowerment and strive to achieve coordinated progress in enterprise development

flue gas waste heat recovery smart heating combustion optimization and environmental facility upgrades leading to a steady increase in social value and ecological benefits. We will also respond to stakeholder concerns with a more open prudent and pragmatic attitude con-

energy utilization efficiency and environmental management standards. The Company continued to expand the application of clean energy tinuously writing new chapters in sustainable development.with annual biomass power generation reaching 89.966 million kWh fulfilling our green development commitment through concrete

actions.

1 2Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

About Luen Mei

Organizational Structure

President: Lu Chengsong

Company Profile Environmental Protection Performance ManagemenConstruction Committee Committee

Luen Mei Quantum Co. Ltd. ("Luen Mei Quantum" "Company" or "we") (stock code: 600167.SH) is one of the core member companies of Heat Source & Heat Network Three Repairs and Technological

Luen Mei Group. The Company has been deeply committed to the field of integrated energy services conducting business around clean heat- Construction Committee Transformation Committee

ing power supply steam supply and related engineering services. It continuously explores and improves its business layout in areas such as

cogeneration distributed energy utilization biomass energy utilization water-source heat pump heating smart heating and other integrated

Vice Chief Chief Vice Vice Vice Vice Vice

energy scenarios. After years of development the Company has gradually formed an industrial structure with clean heating and integrated President Engineer Financial President President President President President

Officer

energy services as its important foundation and continuously promotes refined management intelligent operation and quality service.Based in Shenyang Liaoning the Company combines the resource endowments customer needs and project conditions of different regions

to continuously advances its multi-regional business layout and practices of multi-energy complementarity. Building upon its existing busi-

nesses the Company expands and optimizes its project portfolio through methods such as self-construction acquisition and operational

management striving to provide clean efficient and stable integrated energy solutions for different scenarios including residential heating

industrial parks and public construction projects. Meanwhile the Company consistently strengthens the construction of digital platforms and

operational synergy to enhance the operational efficiency of energy systems service responsiveness and the level of refined management.

34

Xinyuan Project Construction Headquarters

Human Resources & Administration Department

Securities & Branding Department

Hydrogen Energy Business Division

Integrated Energy Business Division III

Horgos Luen Mei Engineering Technology Co. Ltd.Integrated Energy Business Division II

Integrated Energy Business Division I

366 Mobile Internet Technology Co. Ltd.

Market Development Center

IT Management Department

Operation Department

Legal Affairs Department

Finance Department

Beijing Luen Mei Environmental Science and Technology

Research Institute Co. Ltd.Luen Mei Smart Energy Technology (Shenyang) Co. Ltd.Inspection DepartmentLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

Development History

April 2017

Luen Mei Quantum (stock December

January 2016 code: 600167.SH) com- December 2022

pleted the reorganization

Luen Mei Quantum Hold- 2021 CEMT was listed among the

and optimization of i ts

ings Co. Ltd. was through TOP 100 global hydrogen

September organizational structure industrial and commercial energy enterprises in 2022

2012 enhancing the Company's It officially invested in registration renamed as GHEE. Luen Mei Quantum

level of lean management. CEMT by way of equity

Luen Mei Quantum Co. April 2020 transfer and became its actively explored the busi-Investment and Con-

June 2006 Ltd. The stock abbrevia- ness in hydrogen energy struction work began on important shareholders.tion remained: Luen Mei A n a g r e e m e n t o n t h e industry.Shenyang New Distr ict the No. 3 Heat Source Q u a n t u m w i t h s t o c k March 2019 investment and construc-

Development and Con- Plant of Hunnan Thermal code: 600167.SH. tion of a cogeneration

struction Co. Ltd. (stock a subsidiary of Luen Mei Shandong Heze Fulin Ther- project in Sujiatun District

code: 600167.SH) invested Quantum (stock code: mal Technology Co. Ltd. was Shenyang was signed

to estab l ish Shenyang 600167.SH). acquired to strengthen the with an estimated total

Hunnan Thermal Co. Ltd. business layout of the heat investment of RMB 2.1

comprehensively deploying supply sector. billion.clean heat ing and heat

supply business in Shen-

y a n g ' s H u n n a n N e w

District.March 2022

The subsidiary Mega-info

May 2016 Media was officially listed

on the Shenzhen Stock

Luen Mei Quantum (stock Exchange (stock code:

code: 600167.SH) completed 301102.SZ).a major asset reorganization.Seven companies including

Xinbei Thermal Power and its November

April 2005 February 2008 subsidiaries Guohui New 2018

March 2020

Energy and its subsidiaries Part of the equity of the com-

After completing the equity Luen Mei Quantum (stock Shenyang New District Devel- became member companies bined cooling heating and power

transfer with Nanhu Technol- of Luen Mei Quantum. This c o d e : 6 0 0 1 6 7 . S H ) opment and Construction Co. project of the Shanghai National

ogy Group Luen Mei Group Ltd. (stock code: 600167.SH) reorganization expanded the

acquired 100% equity of

Exhibition and Convention Center

became the largest share- Company's business scale Mega-info Media a lead-changed its full name to "Luen Energy Station was acquired to

holder of Shenyang New Mei Quantum Holdings Co. and added business fields

ing domestic high-speed

layout the southern market.District Development and with extremely high environ- rail media digital operator-Ltd." subsequently the Compa-

Construction Co. Ltd. (stock forming a dual main busi-ny's stock abbreviation was mental benefits such as

code: 600167.SH) trans- changed to "Luen Mei Quan- clean coal biomass cogene-

ness structure of "Clean

forming the listed company Heating + High-speed Rail tum" while the stock code ration and intelligent moni-

from state-control led to toring. Digital Media".remained 600167.SH.privately controlled.

5 6Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

Business Strategy Corporate Culture

Facing the trends of green low-carbon transformation and high-quality industry development the

Company continues to adhere to technology and innovation as the driving force with a foundation

self-building in deeply cultivating its main business. Through the triple model of "self-construction + acquisition Thriving Well-being

+ operational management" and focusing on core products such as cooling heating electricity and

steam as well as integrated energy service scenarios the Company promotes steady business

development maintains a firm strategic direction overcomes difficulties and leverages its own

management and operational strengths. The operational situation continues to improve steadily Enterprise Healthy Employee Healthy Social Healthy

laying a solid foundation for the Company's sustained healthy and high-quality development. Development Development Development

Focus on the main business Promote the physical and mental Promote mutual benefit and

and strengthen the industry health of employees win-win results between

enterprises and society

Collaborative operations and Share the achievements of Achieve harmony between

Heilongjiang continuous innovation enterprise development humanity and nature

Jilin

Improve the mechanism and Encourage employees to grow

Liaoning Create a high-quality lifeXinjiang Shenyang operate in compliance and progress

Inner Mongolia Beijing

Tianjin

Hebei

Shanxi

Ningxia Improve management and Comprehensively enhance Be a responsible corporate

Qinghai Shandong develop steadily personal value citizen

Gansu Shaanxi Henan

Jiangsu

Tibet Anhui Shanghai

Hubei

Sichuan

Chongqing Zhejiang

Jiangxi

Hunan

Guizhou Fujian

Yunnan Taiwan

Guangxi Guangdong

Hongkong

Macao

Hainan

Fulfilling Workplaces

The main businesses of the Company include heat supply power supply steam supply and engineering construction. Within the Company's

Achieving Others While Perfecting Ourselves Creating a Better Future Together

business scope prioritized formats encouraged by the state include cogeneration primarily for clean heating waste heat utilization via

water-source heat pumps biomass cogeneration and combined cooling heating and power utilizing clean energy. The Company will continue to

focus on core products like cooling heating electricity and steam integrating the latest energy technologies and equipment to provide custom-

ers with clean efficient safe and stable integrated energy services. While further enhancing the efficiency of urban central heating systems the Make your customers

Company will vigorously develop distributed clean energy technologies and equipment to achieve cleaner upgrades at the source. At the end-us- Make yourself happy Make the team happy Make the family happy happy

er side it will further improve service quality utilize IoT technology to enhance service response speed and precision and achieve accurate feed-

back.Work hard and pursue

dreams Mutual trust Harvest abundantly

Provide whole-hearted

service

Realize self-value Willing to support and Enjoy happy moments Create a better future share together

Heating Power Steam Engineering

supply supply supply construction

78

Acquisition

atio

n

ent

Op

er em

ana

g

& mLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

Honors in 2025

The 13th "GlodenWis" Award

Included in the China Energy (Group)

The Green and Low carbon Outstand-

Top 500

ing Contribution Award

JRJ.com China Energy News

Included in the Classic Brand Case of Enterprise Management &

Chinese Listed Companies Entrepreneur Magazines

Outstanding ESG Achievements of the

National Business Daily Enterprise in 2025

Listed Company with Excellent Competi-

tiveness in New Energy and New China Association for Public Compa-

Materials in 2025 nies (CAPCO)

The 14th China Listed Companies Summit and Outstanding Sustainable Development Practice

Hainan Free Trade Port Opportunities Forum Case of Listed Companies in 2025

Luen Mei Smart was recognized as a

National High-tech Enterprise for the

ESG Rating: A-pi Level first time

Hainan Green Development Credit Rating Co. Guohui New Energy passed the re-review of the

Ltd. National High-tech Enterprise for the fourth

consecutive time

Xinbei Thermal Power won the "2025 Shenyang Xinbei Thermal Power won the title of "Power

Heating Operator and Heating Equipment Enterprise 2024 Annual Advanced Unit for Work

Maintenance Technician Skills Competition - Safety in Power Operation".Civilized Style Award"

Shenyang Heating Industry Trade Union Shenyang Municipal Bureau of Industry

Federation and Information Technology

Xinbei Thermal Power won the "Excellent Heat Exchange Station in Heating Work from 2024-2025 -

Yinhua Property Heat Exchange Station" and the "Excellent Emergency Team in Heating Work from

2024-2025"

Shenyang Municipal Real Estate Bureau

9 10Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

ESG Management Communication with Stakeholders

Luen Mei Quantum attaches great importance to communication and engagement with its stakeholders. Considering industry characteristics

Luen Mei Quantum consistently integrates the concept of sustainable development into the Company's strategy management and daily opera- business layout and development stage the Company continuously identifies key stakeholders closely related to its operations and develop-

tions continuously improving the ESG management system. In 2025 the Company further consolidated the foundation of ESG management ment. Centered on their focus areas the Company through diversified and regular communication mechanisms timely understands stakehold-

around the construction of governance mechanisms communication with stakeholders and the identification of material topics and continu- ers' demands and expectations actively responds to their concerns and continuously enhances the relevance of ESG management and the

ously improved the systematicness standardization and execution of ESG governance. Guided by the national "dual carbon" strategy and the effectiveness of accountability.requirements for high-quality development the Company actively identifies risks and opportunities in the environmental social and governance

domains continuously improves the quality of information disclosure and the level of sustainable development management and strives to During the reporting period the Company maintained communication with stakeholders including government and regulatory bodies sharehold-

create sustainable value for shareholders customers employees partners communities and society in a manner characterized by integrity ers employees customers business partners and communities through various methods such as interviews surveys meeting exchanges

responsibility stability and a long-term perspective. information disclosure site visits and online interactions. Therefore it has fostered a more transparent smooth and effective communication

mechanism.ESG Management Structure Stakeholders Focus Areas Communication Methods Communication and Response

Luen Mei Quantum has established a top-down three-tier ESG management structure with clear responsibilities. It operates through a * Government communication meetings* Provide reliable heating services * Ensure heating services

closed-loop mechanism of "decision-making – management – execution" driven by the Board of Directors for overall decision-making coordi- * Exchanges with regulatory agencies* Integrity and compliance in * Abide by laws and

nated and promoted by the ESG coordination group and specifically implemented by ESG working groups. This structure facilitates the deep operations * Information disclosure and submission

regulations

Government and * Pay taxes voluntarily

integration of ESG principles with corporate governance operational management and business practices. * Tax payment according to law * Regular visitsregulatory authorities according to law

Responsible for the deliberation and decision-making of major ESG issues includ-

Decision-making Board of * Periodic reports and information ing the formulation of relevant strategies and guidelines and the special review of * Improve business perfor-

layer announcementsDirectors * Steady growth of performance mancethe annual ESG report

* Standard corporate governance * Investor investigation * Strengthen internal control

level

* Transparent information * General meeting of shareholders

Coordinated by the Company's Office of the Board of Directors Shareholders disclosure * Communication and answering * Regular information

Management ESG questions on the interactive platform

disclosure

coordination

layer Responsible for coordinating ESG-related affairs including collecting ESG-related group performance information compiling ESG reports conducting communication and * Hold the staff representative congress * Broaden communication and

exchanges with ESG investors etc.* Protection of employees' rights * Employee satisfaction survey feedback channels

and interests * Strengthen occupational

Composed of the functional departments and business departments of the head- * Organize various employee training

quarters and affiliated companies * Occupational health and safety

programs health construction

Execution layer ESG working * Training and career development

* Set up complaint and feedback * Optimize the training and

group Responsible for the centralized management of various ESG topics continuously Employees mailboxes promotion mechanism

deepen key ESG practices and regularly report relevant management measures * Growth of salary and welfare * Organize staff recreation and sports * Improve the salary and

performance indicators and excellent cases health activities welfare system

To continuously enhance ESG governance capabilities Luen Mei Quantum consistently improves its ESG learning and training mechanisms. The * Publicly announce service quality

Company continuously strengthens the sustainability awareness and professional competence of the decision-making management and commitments

* Improve service quality * Strengthen personnel

execution tiers by organizing relevant personnel to participate in sustainability and ESG-themed training industry exchange events and social * Customer room temperature training

* Protect customers' rights and measurement

forums. During the reporting period the Company actively organized senior management to participate in ESG training exchange activities and interests * Telephone hotline service * Improve after-sales service

other thematic forums held by institutions such as the Shanghai Stock Exchange and the China Association for Public Companies. These activi- Customers * Customer satisfaction survey

ties helped in timely tracking ESG policy trends and regulatory requirements learning from industry best practices and continuously improving

the Company's professional knowledge and accountability capabilities in the environmental social and governance fields. In addition the Com-

* Hold bidding meetings

pany organized the Securities and Branding Department to continuously study ESG-related regulations policies and business requirements * Supplier/contractor manage- * Create a responsible supply

ment * Contract negotiation and daily chain

further consolidating the professional foundation and helping to continuously elevate the Company's ESG management level.* Fair and transparent procure- meetings * Fair and open bidding

ment * On-site inspections

In 2025 the Company incorporated environmental and social factors into its cost control assessment system for the first time establishing a Business partners * Industrial chain cooperation

* Win-win cooperation * Supplier evaluation and exchanges

management mechanism that balances short-term operational efficiency with long-term value creation. In the environmental dimension the

Company focused on controlling key cost items such as clean energy substitution pollution control waste heat recovery and reuse of waste

* Create employment

materials. It secured optimal prices for clean fuels through bidding mechanisms promoted the implementation of energy-saving and emis- * Promote employment growth * Hold public open days opportunities

sion-reduction projects and helped achieve low-carbon operational goals. In the social dimension the Company included costs related to heat- * Protect the community environment * Carry out community visits and * Strengthen environmental

ing service quality and production/operational safety within the scope of control. It systematically accounted for special investments in areas exchanges protection management* Drive local community

like smart heating emergency support and renovation of aging pipeline networks effectively avoiding potential operational losses due to service development * Employee volunteer service activities * Support community construction

quality issues thereby safeguarding user rights and operational stability. Furthermore the Company managed key sustainability investments in a * Participate in charity and public * Conduct knowledge promotion and Communities

welfare education * Implement public welfare

coordinated manner such as digital transformation photovoltaic construction and boiler retrofits. By balancing short-term cost pressures with services

long-term benefits the Company aims to build a sustainable operational system that supports high-quality development.

11 12Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report About Luen Mei

Analysis of Material Topics

Based on the Company's business scope industry characteristics the expectations of internal and external stakeholders and the global sustain-

able development landscape Luen Mei Quantum has updated and upgraded its assessment system. This enhancement was done by referencing

relevant domestic and international disclosure standards such as the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of

Matrix of Material Topics

Listed Companies — Sustainability Report (Trial) and the GRI 3: Material Topics. Building upon the previous impact materiality assessment

financial materiality analysis has been integrated. Through these materiality assessments the Company comprehensively identifies topics that

have an impact on its finances as well as on the economic environmental and social aspects and that relate to stakeholder concerns forming a

materiality matrix.Innovation-driven Development

Topic Assessment Process Analysis Methods Circular Economy

Usage of Water Resource Product Quality

Understand the Understand the Company's activities and business relationships Supply Chain Security Service Experience

Step 1 background of the Communication with Stakeholders Pollutant Discharge

Company's activities and Understand the external objective environment

business relationships Employees Waste Disposal

Understand the main affected stakeholders Anti-unfair Competition Climate Change Response

Energy Usage

Refer to the topics set forth in the Guidelines No. 14 of Shanghai Stock Exchange

Anti-Commercial Bribery and Anti-Corruption

Step 2 Topic selection for Self-Regulation of Listed Companies — Sustainability Report (Trial) and con-

duct an analysis in combination with industry characteristics the industry's Exploring Clean Energy

development stage the company's own business model relevant regulatory

policies and peers' practices to initially identify the Company's material topics.Step 3 Materiality assessments Impact materiality assessment

Assess whether each topic will have a potential or actual positive or negative

significant impact on the economy society and the environment. Rural Revitalization

Contribution to the Society

Financial materiality assessment

Science and Technology Ethics

Assess whether each topic is expected to have a significant impact on the Compa-

Equal Treatment to Small and Medium-sized Enterprises Environmental Compliance Management

ny's business model business operations development strategy financial condi-

Ecosystem and Biodiversity Protection

tion operating results cash flow financing methods and costs in the short

medium and long term. Data Security and Customer Privacy Protection

Due Diligence

Step 4 Topic confirmation Form a material topic matrix based on the materiality assessment results of

the topics.Low materiality Financial Materiality to the Company High materiality

Dual material topics Financial material topics Impact material topics Related topics

1314

High materiality Materiality to economic social and environmental impactsLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Establishing Rules for Sound Governance and Stability

Establishing Rules for Sound

Governance and Stability

Luen Mei Quantum consistently regards standardized governance compliant operations business ethics and investor

rights protection as a crucial foundation for sustainable development. The Company is well aware that a robust and

efficient governance system is not only related to operational efficiency and risk prevention capabilities but also directly

influences its performance in environmental management social responsibility fulfillment and long-term value creation.During the reporting period the Company continuously improved its governance structure strengthened internal control

and compliance management advanced integrity in professional conduct and business ethics development and refined

investor communication and return mechanisms continuously solidifying the governance foundation for high-quality

development.Responding to United Nations Sustainable Development Goals (SDGs):

Chapter topics

Standardizing corporate governance 17

Business compliance Management 19

Upholding business ethics 20

Protecting investors' interests and rights 21

15 16Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Establishing Rules for Sound Governance and Stability

Standardizing Corporate Governance Key performance indicators

During the reporting period

Luen Mei Quantum strictly adheres to the requirements of laws and regulations such as the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China and the Code of Corporate Governance for Listed Companies. The Company continuously

the Company convened 4 General Meetings of Shareholders. In accordance with the new Company Law and the Rules Governing the

improves its modern corporate governance system standardizes the operational mechanisms of the General Meeting of Shareholders and the

Listing of Stocks on Shanghai Stock Exchange

Board of Directors and ensures scientific and efficient decision-making procedures as well as the effective functioning of supervisory mecha-

nisms. The Company insists on integrating the development of Party conduct integrity and anti-corruption efforts with corporate governance

continuously strengthening organizational institutional and ideological safeguards and guiding the enterprise towards long-term and stable the Company revised its Articles of Association and 22 related corporate governance management systems.development through standardized governance.Improving Organizational Structure Board of Directors

In accordance with laws regulations and regulatory requirements the Company has established a governance structure characterized by clear The Board of Directors is the core decision-making body of the company responsible to the General Meeting of Shareholders. The Company's

rights and responsibilities distinct division of labor and standardized operation. The Board of Directors is responsible and reports to the General Board of Directors strictly performs its duties in accordance with laws regulations and company bylaws. Directors diligently attend meetings of

Meeting of Shareholders. Under the Board there are four specialized committees: the Strategic Development Committee the Remuneration and the Board of Directors and General Meetings of Shareholders strictly implement authorizations from the General Meeting and promote the

Assessment Committee the Nomination Committee and the Audit Committee. Each committee performs its duties according to its division of implementation of various resolutions.responsibilities providing professional support for the scientific decision-making of the Board of Directors.The Company's Board of Directors has established four specialized committees: the Strategic Development Committee the Remuneration and

The Company also continuously promotes the deep integration of the ESG governance system with the corporate governance system. The Board Assessment Committee the Nomination Committee and the Audit Committee. Each committee provides relevant professional support and

of Directors is responsible for reviewing and deciding on major ESG matters. The Board Office coordinates ESG-related work organizing and recommendations for the Company's development based on its respective responsibilities effectively enhancing the scientific nature and stan-

coordinating various business and functional departments to implement sustainability requirements thereby driving the simultaneous improve- dardization of corporate governance.ment of corporate governance capabilities and sustainable development management standards.In the selection process for Board members the Company systematically considers diverse factors such as age structure educational back-

ground professional qualifications and industry experience. This approach builds a decision-making team with complementary expertise and

rich experience which not only effectively matches the development needs of the Company's various business segments but also significantly

Efficient Operation of the Three Key Governance Bodies enhances the strategic decision-making effectiveness and operational management level of the Board providing strong governance assurance

for the Company's sustainable development. As of the end of 2025 the Board of Directors consists of 7 members including 3 independent direc-

Board of Shareholders tors. Board members possess diverse professional backgrounds and leveraging their extensive industry experience and professional knowledge

provide professional insights and independent judgment for the Company's major decisions from multiple dimensions.The Board of Shareholders is the supreme authority of the Company. The Company strictly complies with legal and regulatory requirements to

comprehensively standardize the convening conduct eligibility of participants and voting procedures of shareholder meetings. Throughout the

process the Company treats all shareholders equally fully safeguarding shareholders' exercise of their rights in accordance with the law with

In 2025

particular attention paid to protecting the legitimate rights and interests of minority shareholders. No incidents harming the interests of minority

shareholders occurred.the Company held6 6 meetings of the and 1 meeting of the A total of 98 proposals were

meetings of the Board of Board's Audit Remuneration and reviewed and approved

Directors Committee Assessment Committee throughout the year.Training for Directors and Senior Management

The Company places high importance on enhancing the performance capabilities of directors and senior management. It actively organizes and

participates in specialized training sessions conducted by regulatory bodies stock exchanges and industry associations continuously improv-

ing the professional competencies of directors and senior management in areas such as corporate governance information disclosure the inde-

pendent director system financial norms and capital market compliance. In 2025 focusing on enhancing the performance capabilities of direc-

tors and senior management the Company organized or participated in 11 training sessions covering topics including compliant performance of

duties for listed companies information disclosure independent directors and market value management.

17 18Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Establishing Rules for Sound Governance and Stability

Date Summary Strengthening Internal Control and Inspection

Training on Compliant Performance of Duties for Directors Supervisors and Senior Executives of Listed Com-

2025.2.14 The Company focuses on key business areas and critical management processes to continuously improve its internal control system. It has

panies in 2025 organized by the Shanghai Stock Exchange formulated and implemented regulatory documents such as the Internal Control Management Measures Heating Inspection Management Regula-

Special Training on the Standardized Operation of Information Disclosure for the Key Personnel of Listed tions Equipment and Material Quality Inspection Management Regulations Environmental Material Sampling and Testing Management Measures

2025.2.18

Companies in 2025 organized by the Shanghai Stock Exchange and the Operational Manual for Managing Unauthorized Valve Opening and Network Connections (First Edition) providing an institutional basis for

standardized operations and risk prevention and control.Training for independent directors of listed companies organized by the Liaoning Association of Listed Com-

2025.2.28

panies To continuously improve the corporate governance system the Company formally reorganized the Inspection Department in July 2025 (compris-

ing 1 inspection manager and 5 inspectors). The department focuses on conducting systematic inspections supervision and evaluations

2025.3.21 A series of Party class trainings organized by China Capital Market Institute regarding institutional development process execution business compliance and potential risks. During the reporting period the Company

carried out regular internal control inspections based on internal control systems completing 6 categories of business checks with a 100% prob-

Training Meeting on Mergers and Acquisitions and Reorganizations of Listed Companies jointly organized by the lem rectification completion rate. By timely identifying and effectively correcting potential risks in operational processes the Company continu-

2025.6.19

Liaoning Local Financial Administration and the Liaoning Office of China Securities Regulatory Commission ously enhances the standardized operational capabilities at all levels and stages providing solid assurance for stable operations and high-quali-

ty development.

2025.7.4 "Special Training on Market Value Management" organized by the Shanghai Stock Exchange

Key performance indicators

The 3rd Subsequent Training for Secretaries of the Board of Directors of Listed Companies in 2025 organized

2025.7.18

by the Shanghai Stock Exchange 0 major quality accidents The number of quality inspections conducted is greater than

Special training on "Analysis of Typical Cases of Illegal Acts by Listed Companies" organized by the Liaoning or equal to 1000.

2025.11.3

Office of China Securities Regulatory Commission

Conducting Compliance Training

Strengthening Party Leadership The Company actively carries out law-abiding and compliance training continuously enhancing employees' awareness of compliance with laws

The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly implements and regulations and their ability to implement systems fostering a positive atmosphere where "everyone knows compliance everyone upholds

the Party's principles and policies gives full play to the political leadership role of the Party organization in corporate governance and continu- compliance." During the reporting period the Company organized studies on the newly revised Securities Law Company Law accounting stan-

ously promotes the deep integration of Party building and enterprise governance. The Company consistently strengthens the leading role of the dards and other relevant industry policies.Party organization in decision-making execution supervision and other areas encourages Party members to play a vanguard and exemplary

role based on their positions and transforms the advantages of Party building into developmental strengths and governance efficacy. Upholding Business Ethics

Meanwhile the Company continuously strengthens Party member education and training as well as the development of Party conduct integrity

Luen Mei Quantum consistently adheres to the principles of integrity in operations clean conduct and fair competition viewing the development

and anti-corruption efforts fostering a clean and upright operational environment. During the reporting period adhering to the requirements for

of business ethics as crucial support for stable operations and sustainable development. The Company holds itself to high standards of busi-

full and rigorous Party self-governance the Company continuously carried out inspections on Party conduct integrity and anti-corruption

ness ethics continuously improves management mechanisms against commercial bribery corruption and unfair competition and promotes a

implementing the requirements of "no forbidden zones full coverage and zero tolerance." It advanced anti-corruption efforts through methods

clean upright standardized and transparent business environment.such as special inspections and routine checks. The Company established integrity reporting channels in procurement and bidding processes

with internal control departments participating in the supervision of key stages. If illegal or non-compliant activities are discovered the Company

will handle them seriously in accordance with laws and regulations effectively maintaining an open fair and just operational order. The Company Anti-Commercial Bribery and Anti-Corruption

commits to conducting rigorous investigations into bidding projects. Any project found to have issues will have its bidding process suspended or The Company strictly complies with the requirements of laws and regulations such as the Criminal Law of the People's Republic of China. It has

its winning result canceled upon verification of the report. established relevant internal control systems and implements regular reviews of commercial bribery and corruption risks through special inspec-

tions routine checks whistleblower hotlines and email reporting maintaining a firm "zero tolerance" attitude towards such illegal and non-com-

pliant activities.The Company places emphasis on protecting the legitimate rights and interests of whistleblowers

Business Compliance Management establishing a reporting protection mechanism to ensure unobstructed complaint channels and

standardized handling procedures. At the same time the Company continuously strengthens edu-

Luen Mei Quantum has continuously strengthened the construction of its internal control and compliance management system and consistently cation on integrity in professional conduct urging all employees to strictly abide by laws regula-

improved its risk prevention and law-based governance capabilities. The Company insists on closely integrating legal development with opera- tions industry standards company policies and professional ethics fostering a professional

tional management focuses on cultivating a compliance culture and gradually establishes a multi-layered compliance management system ethos of integrity self-discipline diligence and responsibility. It also clearly communicates

covering institutional development process control business execution and supervision and evaluation ensuring that all production and opera- anti-bribery and anti-fraud requirements to suppliers agents and ecosystem partners jointly

tional activities are conducted in accordance with laws and regulations. maintaining a healthy and orderly business ecosystem.

19 20Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Establishing Rules for Sound Governance and Stability

During the reporting period During the reporting period

Proportion of directors receiving training on anti-commercial bribery and anti-corruption: 50% the Company completed one profit distribution distributing a cumulative cash dividend of RMB 0.2

per share (tax inclusive).Proportion of management personnel receiving training on anti-commercial bribery and anti-cor-

ruption: 100% The Company adheres to the principles of open transparent true accurate complete timely and fair information disclosure. In accordance with

laws and regulations such as the Securities Law of the People's Republic of China the Company Law of the People's Republic of China and the

The proportion of employees receiving training on anti-commercial bribery and anti-corruption: Rules Governing the Listing of Stocks on Shanghai Stock Exchange the Company has established and consistently implements the Information

100% Disclosure Affairs Management System fulfilling its information disclosure obligations in accordance with the law effectively protecting the

legitimate rights and interests of the Company investors creditors and other stakeholders.Anti-Unfair Competition

During the reporting period

The Company strictly complies with relevant provisions of the Anti-Unfair Competition Law of the People's Republic of China and the Anti-Monopo-

ly Law of the People's Republic of China. Through measures such as establishing and improving internal management systems strengthening

employee ethics training and setting up specialized supervision mechanisms the Company ensures that all business activities are legal and the Company completed all information disclosure tasks including 4 periodic reports and

compliant maintains a healthy and orderly market environment resolutely prevents any form of unfair competition and contributes to building a in compliance with regulations and on schedule issuing a

market ecosystem characterized by sound competition. 56 interim announcements.total of 109 announcement documents

During the reporting period the Company did not face any lawsuits or major administrative penalties resulting from unfair competition practices.The Company places high importance on investor relations management. It has established an Investor Relations Management System and

Protecting Investor Rights and Interests maintains close communication with investors through multiple channels such as general meetings performance briefings on-site research telephone inquiries and the SSE E-Interaction platform. The Company continuously improves the timeliness relevance and effectiveness of

communication striving to build a harmonious and mutually trusting relationship between the Company and its investors.Luen Mei Quantum adheres to the principle of being investor-oriented focusing on balancing short-term returns with long-term value creation.Through measures such as standardizing information disclosure strengthening investor communication and continuously rewarding sharehold-

ers the Company consistently enhances capital market transparency and investor trust.Relying on the stable operation of its clean heating integrated energy and related businesses the Company continuously solidifies its profitability

and cash flow foundation. It actively rewards investors through methods like cash dividends and share repurchases consistently fulfilling its Performance Briefings Telephone Inquiries

responsibility and commitment to investors through practical actions.Held 2 performance briefings throughout 2025 Received over 300 daily telephone inquiries from

actively responding to various questions from investors in total.investors.On-site Research by Institutional Investors SSE E-Interaction Platform

Received institutional investors for on-site research Utilized the SSE E-Interaction platform to actively

3 times. respond to investor inquiries 27 times.

21 22Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Caring for Ecology

Nurturing All Life

As a pioneer in the domestic clean heating field and an integrated energy service provider Luen Mei Quantum actively

responds to the national "dual carbon" strategy consistently adheres to the development philosophy of "Clean Efficient

Smart and Low-carbon" and continuously advances green transformation and environmental management capacity

building. Focusing on key areas such as climate change response environmental governance improvement of resource

utilization efficiency and exploration of clean energy the Company constantly optimizes production methods and

energy structures striving to build a new clean and smart energy system characterized by multi-energy complementar-

ity and synergistic efficiency. While ensuring people's livelihood heating the Company continuously reduces its environ-

mental impact promoting the coordinated progress of enterprise development and ecological protection.Responding to United Nations Sustainable Development Goals (SDGs):

Chapter topics

Climate Change Response 25

Strengthening Environmental Management 29

Optimizing Resource Utilization 32

23 24Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Climate Change Response Risk Type Description Impact Period Financial Impacts Countermeasures

Increase investment in infra-

Climate change has become a significant issue affecting global economic and social development and a key challenge facing the energy indus- Temperature is a key factor affecting s t r u c t u r e u p g r a d e s a n d

try. Luen Mei Quantum attaches great importance to the risks and opportunities that climate change brings to business operations infrastruc- Acute the performance of heating enterpris- Increased operating Short-term r e t r o fi t s t o e n h a n c e i t s

es. Sudden extreme weather during costs and decreased

ture functioning and long-term development. Following the requirements of the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation risks medium-term defensive capability against the heating season directly impacts operating revenue

of Listed Companies — Sustainability Report (Trial) sudden extreme weather the Company comprehensively enhances its capability to address climate change across gov- the Company's performance

events

ernance strategy risk management and indicators & targets.Drought or humid weather leads to

Chronic Strengthen daily mainte-equipment damage or increased the Medium-term Increase in operating

nance and upkeep of equip-

Climate-related Governance risks difficulty of operation and mainte- long-term costs ment and facilitiesnance

The Company incorporates climate change response into its sustainable development governance framework. Relying on the Board of Directors

the ESG coordination group and ESG working groups the Company has established a climate-related governance mechanism. It continuously Environmental protection investment

strengthens the identification analysis response and tracking management of climate-related issues promoting the deep integration of climate and operation are significant compo-

change response with operational management. For more details on the governance structure please refer to the "ESG Management Structure" nents of production for heating enter- national and local regula-

prises. The Company's current envi- Increase in t ions to ensure company section of the report.Policy and ronmental facilities and operations production costs operations comply with the

legal risks fully comply with national standards Medium term latest environmental poli-and emission requirements. However Increase in operating c i e s a n d l e g a l r e q u i r e -

the gradual increase in national envi- costs ments avoiding penalties

Climate-related Strategies ronmental standards will add pressure and litigationon the Company's environmental

Considering industry characteristics and business layout the Company identifies and assesses current and potential future climate-related risks investment and operational costs.and opportunities. Targeted response measures are formulated for different risk types to enhance corporate resilience and adaptability mitigat-

ing their impact on the Company's business. To address climate change the Com- Increase investment in green

pany needs to adopt more advanced technology R&D actively seek

Technical and environmentally friendly produc- Increase in R&D partnerships establish innova-

risks Long termtion technologies and equipment costs tion mechanisms and acceler-

requiring increased technological ate the application and promo-

innovation efforts tion of new technologies

The centralized heating industry in

China is developing towards cleaner

solutions. Customers tend to prefer

more low-carbon low-power-con- Reduce environmental impact

Market sumption products. If the Company Decline in operating by adopting clean energy

risks Medium termfails to meet customer requirements income promoting low-carbon technol-

in sustainable performance aspects ogies and other means

like energy saving and consumption

reduction it may face the risk of

customer attrition.Opportunity type Description Impact Period Financial Impacts Countermeasures

The rising tide of addressing climate Actively advance the improve-

Market change is driving the emergence of ment of c lean technology

clean energy and other related fields Increase in operating

opportunities Medium term processes to enhance the bringing even greater market demand to income market competitiveness of the

the Company. Company's products

By promoting the transition to low-car- Optimize energy utilization

Resource bon efficient production methods efficiency conduct regular

energy consumption can be reduced Short-term Decrease in

efficiency energy efficiency assessments and efficiency improved medium-term operating costs and raise employee awareness

of resource utilization

2526

Physical risks Transition risksLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Notes

Indicators Unit 2025

Impact period: Short-term is within 1 year (inclusive) after the end of the Company's sustainability reporting period medi-

um-term is 1-5 years (inclusive) and long-term is more than 5 years. Direct GHG emissions (Scope 1) Million tons of carbon dioxide equivalent 2.64

Indirect GHG emissions (Scope 2) Million tons of carbon dioxide equivalent 0.04

Total GHG emissions (Scope 1+ Scope 2) Million tons of carbon dioxide equivalent 2.68

Climate-related Impacts Risks and Opportunities Management

The Company strengthens the management of climate risks and opportunities. It has established standardized processes for climate risk identi- Notes

fication assessment and response and makes timely adjustments based on its own business characteristics and changes in internal and exter-

nal environments continuously enhancing its risk management capabilities in addressing climate change. Calculation basis: Luen Mei Quantum has accounted its carbon emissions in accordance with the Guide-

lines on Enterprises Greenhouse Gas Emissions Accounting and Reporting — Power Generation Facilities

issued by the Ministry of Ecology and Environment along with other relevant standards or technical speci-

fications. The Company's emission facilities include boilers gas turbines and power generation equipment

purchased. The carbon emission accounting was carried out by the operational control approach and using

factors set forth in standards such as the Announcement on the Release of 2022 Power Sector CO2 Emission

Factors jointly published by the Ministry of Ecology and Environment and the National Bureau of Statistics.Risk Risk Risk

identification assessment control

Greenhouse gas emission reduction

The Company establishes and improves its carbon emission management system refines the carbon emission management framework

Comprehensively analyze the current For the identified climate risks com- For control measures formulated for promotes low-carbon technology innovation and the implementation of low-carbon projects and effectively controls total carbon emissions and

environmental conditions domestic prehensively evaluate their potential identified and assessed risks the intensity. The Company integrates digital technologies and applies the latest energy technologies and equipment. While further enhancing

and international policies and regula- impacts on the Company's income re levant depar tments sha l l be the efficiency of urban central heating systems it vigorously develops distributed clean energy technologies and equipment. It continuously

tions industry characteristics and cost and assets from the dimensions responsible for the implementation of conducts deep-level multi-dimensional energy-saving and emission reduction retrofits for heat sources constantly achieving cleaner

stakeholder demands and identify of impact period and impact degree targeted control measures upgrades at the source.potential climate-related risks based and adjust the priority of climate

on the Company's actual situation change risk management according In terms of the heat source end In terms of the operational end

to the evaluation results

the Company is committed to promoting the Company installs and optimizes online monitoring

environmental retrofits for heat source plants systems using smart operation platforms to conduct

to achieve ultra-low emission standards real-time data monitoring precise adjustment and

minimizing the environmental impact of heat optimized configuration of heat sources and

sources. networks striving to minimize operational-end

emissions.Climate-related Indicators and Goals

Climate Goals of Luen Mei Quantum Meanwhile building on the great success of the pilot dual-circulation fluidized bed boiler project it continuously advances retrofits of other

projects further improving boiler efficiency reducing coal consumption thereby promoting energy conservation and emission reduction.Guided by "green development scientific and technological innovation clean energy supply" the Company

has continuously upgraded its heat source and heating network projects through methods such as inde-

pendent R&D cooperative introduction and technological transformation. It continuously improves the

energy efficiency of heat source and network projects promotes the application of green and low-carbon

During the reporting period

technologies reduces greenhouse gas emission intensity and contributes to achieving the national "dual

carbon" goals.the Company achieved a greenhouse gas emission reduction of 101170.23 tonnes of carbon dioxide equivalent.During the reporting period the Company fulfilled its carbon emission obligations with no instances

requiring rectification or investigation by relevant authorities.

27 28Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Strengthening Environmental Management

Environmental Strategies

Luen Mei Quantum insists on integrating ecological and environmental protection throughout the entire production and operation process. It Recognizing the regulatory operational and environmental risks that may arise from improper

strictly complies with national and local environmental laws and regulations continuously improves environmental management systems risk management of pollutants and waste the Company continuously identifies potential risks in

prevention and control mechanisms and pollution control measures. The Company strives to minimize the environmental impact of its produc- environmental management links and formulates targeted response measures. During the

tion activities ensuring strict adherence to environmental compliance requirements at every stage of production and contributing to environ- reporting period the Company did not incur any administrative penalties for environmental inci-

mental protection and sustainable development through practical actions. dents or criminal liability involving environmental issues.Environmental Governance

The Company places great importance on ecological and environmental protection considering the improvement of environmental management

mechanisms a top priority in its environmental work striving to minimize the environmental impact of its production and operational activities.The Company strictly abides by national and local environmental protection laws regulations and standards such as Environmental Protection

Law of the People's Republic of China Law of the People's Republic of China on Environmental Impact Assessment Law of the People's Republic of Policy risks Market risks Chemical risks

China on the Prevention and Control of Atmospheric Pollution the State Council's Opinions on Strengthening Key Work of Environmental Protection

Regulations on the Administration of Construction Project Environmental Protection Emission Standard of Air Pollutants for Thermal Power Plants

and Emission Standard of Air Pollutants for Boilers etc. and has formulated the Environmental Protection Management Measures of Luen Mei Quan-

tum and the Environmental Protection Responsibility System clarifying the general requirements of the Company on environmental protection. The Description Description Description

Board of Directors is responsible for supervising the implementation of the environmental protection work of the functional departments at each

level in the headquarters. Subsidiaries fulfill the primary responsibility for environmental protection and primary-level units ensure the imple- As the government strengthens the As the public pays more attention The chemical substances used in

mentation of environmental protection measures. This constructs a three-tier environmental protection management system of decision-making standards of waste water waste gas to water safety and air quality e qu ip me nt o p e rat io ns su c h as

and deployment supervision and management and organizational implementation implementing a vertically graded management structure. discharge and waste treatment the enterprises with high pollution and ammonia water can cause irritation

Company needs to invest more money high emissions wi l l lose their and corrosion to the human body. If

to upgrade technology and control market competitiveness safety management is inadequate

Responsible for overall company procurement and management of materials cost pollution discharge during storage and usage leaks are Horgos Luen Mei

Engineering Technolo- management engineering management etc. Screens suppliers of environmental

likely to occur potentially leading to

protection facilities and related material/equipment/services and manages environ-

gy Co. Ltd. environmental incidentsmental protection companies

Operation Management Responsible for data tracking collection and analysis of various operational stages

Impact Period Impact Period Impact Period

including raw materials boilers pipe networks and end-users; monitors daily envi-

Department Short-term medium-term Long term Short-termronmental protection data.Luen Mei Smart Energy Explores and researches the application of new environmental protection technolo- Financial Impacts Financial Impacts Financial Impacts

Technology (Shenyang) gies in the company's business areas; responsible for directing the implementation of

Co. Ltd. heating projects and providing technical support for integrated energy business. Increase in operating costs Decline in operating income Increase in operating costs

Monitors environmental protection work and the operation of environmental protec-

Inspection Department tion facilities; coordinates environmental protection-related affairs among various Countermeasures Countermeasures Countermeasures

functional departments.The Company pays close attention to and Monitor and manage all kinds of pollution The Company has formulated the Emer-

strictly abides by the relevant laws and emissions and regularly entrust qualified gency Plan for Sudden Environmental

regulations on pollutants and wastes in third-party testing units for testing so as Incidents specifying requirements for the

Based on the environmental protection management system at the headquarters time to ensure that its production and promptly identify and address potential emergency command organization and

Various departments level formulate their own company's environmental protection management system; emissions meet the latest environmental pollution risks; At the same time actively its responsibilities prevention and early

like Production Tech- cooperate with local environmental protection administrative departments; responsi- policies and regulations introduce green and low-carbon technol- warning information reporting emergen-

nology Department ble for the operation management and maintenance of their company's environmen- ogies to reduce the emissions generated cy response post-incident handling and tal protection facilities initiation and construction supervision of major repairs tech-

Operations Depart- by production other work requirements for sudden envi-nical renovations and new projects for environmental facilities testing of environ-

ment etc. of each ronmental pollution incidents as well as mental materials recording and statistics of emission status and facility operation

subsidiary regular training and drills for emergency ensuring normal safe stable and economical operation of environmental protection plans

facilities.

2930

Subsidiary

Headquarters level

company levelLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Impact Risk and Opportunity Management

Luen Mei Bioenergy's Boiler Denitrification Retrofit

The Company has formulated the Environmental Self-monitoring Plan according to the national standards continuously strengthened the

management of environmental assessment and completion acceptance of the project entrusted a qualified third party to carry out testing

and input it into the self-monitoring system for publicity and regularly identified evaluated and monitored the potential risks in production During the reporting period Luen Mei Quantum's subsidiary Luen Mei

and operation. At the same time the Company reinforces the whole-process management of environmental factors through methods such Bioenergy actively responded to the boiler management requirements for

as environmental protection post responsibility systems environmental safety operation procedures operation record logs and biomass power plants issued by the Jiangsu Provincial Department of Ecol-

daily operation analysis minimizing the negative environmental impact of production and operational activities. ogy and Environment. It phased out the oxidative denitrification ultra-low

emission process and adopted a combined ultra-low emission process of

Indicators and Objectives in-furnace SNCR denitrification plus high-temperature high-dust SCR

denitrification.The Company intends to progressively increase its financial commitment to environmental protection focusing on several key areas including

pollution control the acquisition of advanced environmental monitoring equipment and the research and development of new environmental

technologies so as to maximize the elimination of "three wastes" (wastewater waste gas and solid waste) during the production process strictly

control pollution ensure that any remaining wastewater and exhaust gases meet emission standards and manage waste disposal appropriately

thereby preventing any sudden major environmental incidents. Waste Management

"Three Wastes" Management Measures The Company is resolute in preventing and controlling environmental pollution

The Company has invested heavily in the installation of environmental protection equipment. Over the years it has continuously invested in from solid waste implementing centralized collection and management of waste.technology updating and equipment transformation and is committed to providing quality services to users in an innovative energy-saving The main types of solid waste generated during the Company's production and

environmentally-friendly and low-emission operation mode and constantly strictly managing wastewater waste gas and solid waste. operation are pulverized coal ash filter residue and desulfurization gypsum from

boilers. These are all handed over to qualified third parties with disposal capabili-

During the reporting period the Company and its subsidiaries have strictly complied with the pollutant emission concentration limits established ties for off-site treatment. An industrial solid waste report is issued and a Solid

by environmental protection authorities. There have been no significant adverse effects on employees local community residents or the Waste Disposal Contract and Solid Waste Evaluation Filing are formed.environment due to the Company's pollutant emissions. Additionally the Company has not faced any major administrative penalties or criminal

liabilities. For more details about pollution discharge please refer to our "2025 Annual Report".Wastewater Management

The Company implements separate drainage systems for rainwater and sewage establishing dedicated pipe networks. Domestic sewage flows Optimizing Resources Utilization

into municipal sewage networks for centralized treatment at sewage treatment plants. Industrial wastewater discharge outlets are established

Luen Mei Quantum continuously advances resource conservation and recycling. Focusing on key areas such as energy water resources and

in accordance with laws administrative regulations and provisions of the competent environmental protection department under the State

clean energy utilization the Company improves resource use efficiency and promotes green low-carbon operations through technological

Council. Industrial wastewater containing toxic and harmful water pollutants is collected and treated separately and is discharged only after

upgrades digital management and recycling measures. While vigorously promoting energy saving and efficiency gains the Company strength-

meeting the treatment process requirements of centralized treatment facilities ensuring that industrial wastewater does not enter rivers or

ens water resource management and enhances the recycling rate of resources truly achieving the goal of "providing the best heat with the least

groundwater via sewer pipes. Qualified third-party agencies are regularly commissioned to conduct environmental monitoring of wastewater

resources." In 2025 the Company continued its efforts in clean energy application and resource efficiency improvement with total biomass

discharge outlets.power generation reaching 89.966 million kilowatt-hours.Waste Gas Management

The Company complies with the requirements for total emission control of key air pollutants. It establishes air pollutant discharge outlets in

accordance with laws regulations and provisions of the competent environmental protection department under the State Council. For Biomass Clean Energy Supply Empowers Taizhou Industrial Park

production and service activities generating waste gas containing volatile organic compounds pollution prevention and control facilities are

installed and used as stipulated. Measures such as containment screening covering cleaning and sprinkling are taken to reduce dust and During the reporting period Luen Mei Bioenergy consumed approximately 300000 tons of

gaseous pollutants generated during the storage transfer and handling of internal materials. For activities producing odorous gases reasonable agricultural and forestry waste annually generating about 100 million kilowatt-hours of elec-

protective distances are maintained and purification devices are installed. Daily spot checks are conducted on waste gas treatment facilities tricity and supplying about 500000 tons of steam externally. It provided professional central-

and qualified third-party agencies are commissioned for regular environmental monitoring of waste gas discharge outlets. ized heating services for the Taizhou Economic Development Zone and the Pharmaceutical

Industrial Park replacing 100000 tons of standard coal equivalent reducing carbon dioxide

The Company continuously implements technological upgrades and retrofits. It employs low-nitrogen combustion technology as well as

emissions by 270000 tons. This made a significant contribution to the comprehensive utili-

Selective Non-Catalytic Reduction (SNCR) and Selective Catalytic Reduction (SCR) flue gas denitrification systems to control nitrogen oxide

zation of agricultural and forestry waste in Taizhou playing a positive role in promoting and

emissions. Meanwhile electrostatic bag dust removers and fabric filter dust removers are used to control particulate matter. Methods such as

demonstrating Taizhou's economic development and environmental protection.in-furnace calcium injection limestone-gypsum wet scrubbing magnesium oxide wet scrubbing slaked lime-sodium carbonate dual-alkali

method and circulating fluidized bed flue gas desulfurization systems are used to control sulfur dioxide emissions.

3132

Case CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Caring for Ecology Nurturing All Life

Energy Saving Consumption Reduction and Efficiency Improvement

During the reporting period

Heating as a crucial people's livelihood industry is also a major energy consumer. The Action Plan for Carbon Peaking Before 2030 issued by the

State Council explicitly states the need to adhere to safe carbon reduction vigorously implement renewable energy substitution under the prem-

ise of ensuring energy security and accelerate the construction of a clean low-carbon safe and efficient energy system. Total water consumption: 4697182.42 tons

The Company regards energy-saving retrofits as an important means to improve energy efficiency. On one hand it continuously tracks industry

trends in equipment updates and energy-saving technologies; on the other hand it thoroughly investigates potential for energy savings in the

production process. Through measures such as phasing out high-energy-consuming equipment introducing energy-saving technologies and

energy management systems and optimizing production processes the Company achieves efficient energy utilization. As of the end of the Resource Recycling

reporting period the Company's clean heating rate reached 100%.Driven by the dual engines of digital transformation and resource circularity Luen Mei Quantum systematically promotes resource recycling. The

Company prioritizes the use of renewable and recyclable eco-friendly materials to facilitate efficient resource utilization and environmental

Technological Retrofits Driving Energy Conservation and Consumption Reduction protection achieving a dual enhancement in operational efficiency and environmental benefits.In production the Company's heat source plants repurpose chemical wastewater and boiler blowdown for ash flushing or flue gas desulfuriza-

Guohui New Energy a subsidiary of Luen Mei Quantum completed the retrofit project for Boiler 1# in 2025 drawing on expe- tion (FGD) drainage treatment. Wastewater from ash flushing is discharged into sedimentation tanks for settling after which the supernatant is

rience from energy-saving technological upgrades in 2024. Prior to the retrofit the boiler efficiency of Boiler 1# was 79.81% reused for further flushing. For FGD drainage the Company employs the double-alkali method spraying water mist (mixed with alkali solution)

which increased to 88.09% post-upgrade. It is estimated that during the 2025-2026 heating period the heat output of Boiler within the desulfurization tower. This generates 1300 t/d of desulfurization wastewater which is processed through sedimentation to allow the

1# will reach 627843.31 GJ. Based on the efficiency rate of 88.09% this will result in a coal saving of 5532.37 tons translat- supernatant to be recycled back into the FGD spray system. Both methods enable the closed-loop recycling of production wastewater.

ing to a cost reduction of RMB 2323600.During the reporting period

During the reporting period Recycled computers: Reused toner cartridges: Total volume of recycled water : Proportion of recycled water

10 to total water consumption: units 63 units 408965.59 tons

Coal consumption: Liquefied petroleum gas (LPG) consumption: Electricity consumption: 8.71%

2164138.08 tons 20.90 tons 259236 MWh

Exploring Clean Energy

Diesel consumption: Gasoline consumption: Total purchased heat:

1016639.45 115534.94 5491.86 Guided by the "dual carbon" policy and the resulting industry transformation Luen Mei Quantum has positioned itself as a comprehensive clean liters liters GJ

energy service provider. The Company is steadily strengthening its clean heating business continuously increasing the proportion of clean

energy within its overall energy structure. Furthermore it is actively exploring the application of clean energy technologies such as hydrogen and

photovoltaics (PV) promoting the localized implementation of hydrogen energy.Promoting Water Conservation

Additionally the Company explores renewable energy technologies like PV to further expand its clean energy footprint. By utilizing approximately

Luen Mei Quantum manages water withdrawal and sewage treatment in strict accordance with the Water Law of the People's Republic of China 910 m2 of the main office building's rooftop the Company constructed a distributed rooftop PV power station with an installed capacity of 30.8

striving to reduce wastewater discharge and improve water resource utilization efficiency. Simultaneously the Company actively advocates for kWh. During the reporting period the station generated a total of 34217.564 kWh of electricity opening up new horizons for green development.water-saving behaviors by posting water conservation signs in offices and engineering sites encouraging employees to save water in their daily

work and strengthening their conservation awareness.Regarding breakthroughs in core technologies the "Heat Pump Self-Cleaning Technology" independently developed by Guohui New Energy utiliz-

es dynamic water-source heat pumps to recover waste heat from reclaimed water and residual heat for centralized heating. This process is a

domestic pioneer and has reached an internationally leading level delivering significant environmental benefits. Due to its innovativeness and

demonstrative value the project was listed as a Demonstration Project by the Ministry of Housing and Urban-Rural Development fully reflecting

the Company's technical leadership in clean heating and resource recycling.

3334

CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Connecting Households

and Sharing Harmony

With over 20 years of profound expertise in integrated energy services Luen Mei Quantum consistently adheres

to its core philosophy of "Connecting to the Future Making Life Beautiful". The Company integrates a sense of

responsibility into the entire process of corporate development. While ensuring heating for people's livelihoods

driving green transformation and enhancing service quality the Company continues to create sustained social

value. During the reporting period the Company deepened its sustainability practices across key areas including

technological innovation quality management customer service supply chain synergy employee development

and social responsibility striving to achieve a positive interaction between corporate growth and social sharing

employee advancement and community co-construction.Responding to United Nations Sustainable Development Goals (SDGs):

Chapter topics

Driving Transformation Through Innovation 37

Upholding Excellence in Quality Control 38

Enhancing Service Experience 41

Cultivating a Sustainable Supply Chain 42

Safeguarding Employee Rights and Well-being 43

Advancing Social Harmony and Community Co-construction 53

35 36Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Driving Transformation Through Innovation Upholding Excellence in Quality Control

Against the backdrop of the deepening green and low-carbon transition Luen Mei Quantum adheres to technological innovation as its core driv- Luen Mei Quantum regards quality as the cornerstone of corporate survival and development. Adhering to the principle of "quality first as a cen-

ing force. The Company consistently advances the construction of smart heating systems the integration of multi-energy complementary tech- tury-old foundation" the Company consistently refines its quality management system and risk prevention mechanisms. By establishing robust

nologies and full-process digital control. By accelerating the development of a low-carbon efficient and intelligent energy operation system the quality governance structures the Company identifies quality-related impacts risks and opportunities while benchmarking against international

Company actively fosters and develops new quality productive forces. Focusing on the intelligent operation of energy supply the Company sys- advanced management systems. Furthermore the Company actively leads or participates in the formulation of industry standards to drive quali-

tematically promotes a green and low-carbon transition through multi-dimensional digital and intelligent means. During the reporting period the ty upgrades and sustainable development within the sector.Company established and stabilized a smart operation platform prioritizing the development and application of smart heating platforms indoor

temperature collection modules and secondary heating network pole-mounted temperature monitoring modules to enhance energy efficiency

and precision management through technological integration. Quality Governance

The Company maintains strong competitiveness in R&D and technological innovation supported by platforms such as high-tech enterprise The Company strictly complies with the Product Quality Law of the People's Republic of China the Metrology Law of the People's Republic of China

status and municipal enterprise technology centers. These platforms have facilitated a robust technological innovation mechanism. During the and the Standardization Law of the People's Republic of China among other regulations. The Company has established internal policies such as

reporting period no incidents involving violations of scientific and technological ethics occurred. the Administrative Regulations on Quality Inspection of Equipment and Materials and the Administrative Measures for Sampling and Testing of

Environmental Protection Materials. The Technical Renovation Committee of "Three Repairs" is responsible for operational planning and target

setting while the Quality Inspection Department oversees daily quality management and the periodic identification of quality-related impacts

risks and opportunities. Luen Mei Quantum requires all eligible subsidiaries to obtain and maintain quality management system certifications. As

Low-Carbon Distributed Heating Project Empowering the of the end of the reporting period 100% of the Company's eligible operating subsidiaries have passed the quality management system certifica-

Boguan High-Speed Railway Hub tion and maintain effective operations.In response to the imperative of green and low-carbon development Luen Mei Quantum successfully implemented the inte-

grated energy service project for the Boguan Station of the Shenyang-Baihe High-Speed Railway. Currently the project is Quality Strategy

fully completed and provides stable clean heating for this new urban hub during the 2025-2026 heating season. The

Boguan Station project represents a successful migration and precise replication of the Company's accumulated expertise The Company consistently attaches great importance to quality and safety control strictly managing potential adverse impacts and risks such

in renewable energy applications to broader and more flexible distributed energy scenarios. This achievement signifies a as the aging of network equipment and construction quality that may affect current and expected financial conditions in the short medium and

significant addition to Luen Mei Quantum's technical toolkit for integrated energy services tailored to meet the demands of long term. To address these impacts and risks.a new era.regarding pipeline equipment Regarding construction quality

the Company strives to adopt high-quality new materials the Company continuously optimizes its material and engi-

during the construction and renewal of networks while neering management systems implementing key supervi-

strengthening the maintenance and upkeep of existing sion over new heat sources primary networks heat

networks and equipment to extend their service life and exchange stations large-scale secondary networks as well

control maintenance and renewal costs. as boiler "three repairs" projects specialized environmental

engineering major boiler overhauls furnace insulation and

lining and large-scale riser pipe modifications.During the reporting period R&D Expenses: RMB 44408944.56 Impact Risk and Opportunity Management

87 The Company has established a comprehensive product quality management system. Based on the requirements of the product quality manage-As of the end of the reporting period: Total granted patents: including: ment system and the internal business and management architecture the Company updates its policies annually to ensure alignment with actual

management needs and effectively promote the continuous improvement of product safety management quality. The Company has formulated and

Invention patents: Utility models: Software copyrights: R&D projects in progress: continuously refined systems such as the Measures for Engineering Quality Management (Trial) the Measures for Acceptance Management of Heat

21 59 7 6 Source and Heat Network Construction Projects (Trial) the Measures for Construction Management of Primary Network Projects (Trial) and the Mea-

sures for Construction Management of Secondary Network and Heat Exchange Station Projects (Trial) to identify and assess short medium and

long-term impacts and risks.

3738

CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Quality Control Initiatives

Material quality management for delivered equipment According to the Company's long-term strategic development plan and to promote the institutionalized and

standardized development of business prevent quality risks unify technical requirements and ensure controllable

The Company conducts inspections of bulk materials and key components for heat source construction and

quality and costs the Company has fully interpreted relevant national standards and specifications. After multiple

primary network projects to ensure material quality and prevent potential short-term medium-term and

discussions comparisons and optimizations of the standards originally adopted by subsidiaries the Company

long-term risks.reached a consensus and formulated and continuously updated its enterprise quality and technical standard

Standardization system. This system covers dimensions such as equipment materials engineering and testing including 12

Leadership Luen Mei Quantum enterprise standards. In 2025 the Company continued to organize subsidiaries at all levels

Engineering quality management Heating management to carry out training and publicity on enterprise technical standards strictly implemented quality standards

and unified the Company's technical requirements laying a solid foundation for the improvement of product

he Company performs on-site audits of projects The Company strictly prevents unauthorized con- quality.initiated by member companies to prevent poten- nections strengthens statistical data analysis and

tial quality risks at construction sites. enforces strict inspection and reporting proce-

dures to ensure the coverage rate of inspections The Company consistently strengthens quality inspections in equipment delivery construction sites and

and the confirmation rate of valves. heating management stages to promptly identify and rectify problems plug quality loopholes and ensure

that materials used meet qualified standards with returns exchanges and penalties for non-conforming

products. The Company has strengthened the management of coal chemical testing to ensure that testing

data is timely and accurate providing a reliable basis for controlling the quality of incoming coal and the

Indicators and Targets Quality Company's scientific and efficient operation. Furthermore the Company has intensified inspections of

Penalties unauthorized connections to crack down on illegal network access protecting the legitimate rights and

The Company sets quality-related indicators and targets in accordance with the 2025-2026 Production and Operation Plan. interests of heat users and improving urban heating quality. During the reporting period the Company

conducted over 1000 quality inspections achieving a 100% rectification rate for quality hazards

and issues. No major quality accidents occurred.During the reporting period

Quality Penalty Procedure

Core indicator 2025 targets Completion in 2025

The Quality Inspection Relevant departments The Quality Inspection The non-compliant

Achieve 100% inspection coverage for

Quality Centralized bulk materials and key components in Completed 315 batches of on-site physical

Department issues an and leadership sign and Department issues a entity completes

management of planning and inspection report and approve the authoriza- penalty notice to the rectifications and

equipment and strict material heat source construction and primary inspections of equipment and materials and

materials quality control

penalty recommendations. tion form. non-compliant entity. pays the fine.network projects with random inspec- 42 third-party laboratory tests.tions for other components.Verified confirmed supervised and managed a

total of 286 projects including new construc-

Conduct on-site audits for projects tion technical renovation of "three repairs" for

initiated by member companies. heat sources primary and secondary networks Planning

management and heat exchange stations.and process Supervise the commencement prog-

management As of January 11 signed and confirmed ress process inspection and final 248 engineering acceptance certificates as

acceptance of engineering projects. well as 198 documents covering warranty

acceptance physical progress and contract

On-site fulfillment.management

Strengthen the management of engi-

Engineering neering quality to achieve construction

quality quality targets and ensure that engi- Conducted 649 on-site inspections in total.control neering quality remains in a "controlla-

ble and under-control" state.

39 40Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Enhancing Service Experience Data Security and Customer Privacy Protection

Luen Mei Quantum strictly complies with the Law of the People's Republic of China on the Protection of Consumer Rights and Interests. Adhering to The Company continuously strengthens its information security management and customer privacy protection systems strictly complying with

a service philosophy of "customer-centricity and market orientation" the Company continuously refines its service systems optimizes service the Cybersecurity Law of the People's Republic of China the Data Security Law of the People's Republic of China and the Personal Information

workflows and improves service efficiency to provide users with timely professional and considerate heating services. Protection Law of the People's Republic of China. The Company has formulated approval processes for data and document access. Specialized

system data is managed by dedicated personnel and all access permissions are strictly controlled to prevent the leakage of data and customer

privacy. On the user side customers must present valid identification to inquire about outstanding fees suspension of supply or contact infor-

Streamlining Service Response Channels mation. Without consent the Company does not disclose customer information to any third party. During the reporting period no data security

The Company has constructed a multi-dimensional "online + offline" grievance handling system. By integrating the heating grievance system the incidents or customer privacy breaches occurred."12345" Citizen Hotline heating service hotlines the "366 e-Life" platform community grid member coordination and on-site visits the Company

ensures comprehensive coverage for receiving user heating requests. During the reporting period a total of 41000 heating-related requests

(including inquiries repairs and complaints) were processed primarily focused on four categories: sub-standard indoor temperatures pipeline Cultivating a Sustainable Supply Chain

leakage insufficient radiator heat and heating facility failures. To enhance response efficiency the Company operates a 24-hour heating service

hotline with dedicated staff and has dispatched personnel to the "12345" Citizen Hotline Center. This enables "one-click dispatch and precise Luen Mei Quantum strictly complies with the Tendering and Bidding Law of the People's Republic of China and relevant laws and regulations con-

diversion" of requests ensuring timely response and efficient handling of user grievances. sistently refining its supplier management system. During the supplier admission and management process the Company focuses not only on

product and service quality but also integrates ESG factors such as labor compliance occupational health and safety business ethics and envi-

Establishing a Closed-Loop Processing Mechanism ronmental awareness into its considerations. The Company is committed to driving the transmission of sustainability concepts throughout the

The Company has established a four-stage closed-loop mechanism consisting of "grievance supply chain striving to build a green responsible and sustainable supply chain.acceptance – classified processing – supervision and feedback – follow-up evaluation". Under this

framework inquiries are answered immediately repair requests are handled within set time limits Complaint Intake

and complaints undergo root-cause rectification. All requests are recorded in the system with Supply Chain Management System

defined processing deadlines and responsible entities to ensure that "every case is implemented Follow-up Sorting and Upholding the principles of responsible procurement the Company continues to establish and improve a unified

and every matter receives a response". Simultaneously the Company implements a rapid response Survey Handling standardized and transparent supplier management system. During the reporting period the Company formulat-

mechanism of "minor repairs are completed within the same shift; major overhauls are finished ed and refined internal policies including the Supplier Management and Admission System the Administrative Mea-

within the day". Emergency repair teams are on standby 24/7 achieving a 98% on-site resolution Follow-up sures for Tendering and Bidding and Procurement Regulations and the Operational Measures for Negotiated Procure-

and

rate for common issues. For complex problems the Company collaborates with communities to Reporting ment under the Tendering and Bidding Framework. These policies clarify management requirements for key stages

conduct on-site investigations and formulate "one household one policy" rectification plans such as supplier admission tendering and negotiated procurement. Simultaneously the Quality Inspection

achieving a 100% rectification completion rate and effectively safeguarding the user experience. Department performs independent supervision over the compliance and deviations of the tendering process

ensuring that all bidding and procurement activities follow the principles of unity standardization transparency

Optimizing User Experience and fairness thereby continuously enhancing the institutionalization of supply chain management.The Company prioritizes service capacity building. During the reporting period the Company organized eight specialized training sessions for

heating customer service covering over 200 attendances of customer service and heat exchange station personnel. These efforts effectively Supply Chain Management Initiatives

enhanced professional handling capabilities and service standardization reducing the rate of secondary grievances. Meanwhile through diverse The Company continuously improves its supplier management system by leveraging an online supplier management platform to enhance the

channels such as distributing convenience service cards posting notice boards utilizing neighborhood owner groups and online platforms the efficiency of data processing online audits and process management achieving standardization and transparency across the entire supply

Company conducts heating publicity and popularizes heating knowledge guiding users to standardized heating usage and self-resolution of chain. On the basis of ensuring compliance and contract fulfillment the Company conducts supplier evaluations based on platform data guiding

simple issues continuously improving user satisfaction and the heating experience. In 2025 centering on the core demands of users during the suppliers to adhere to business ethics fulfill social responsibilities and consistently improve their environmental and social performance. In the

heating period by establishing mechanisms strengthening supervision optimizing services and focusing on rectification the Company suc- procurement phase the Company strictly monitors the compliance of supplied products in terms of environment safety and quality while

cessfully completed the annual heating grievance handling work achieving a 100% request acceptance rate 100% completion rate and 100% encouraging suppliers to continuously improve products and services to drive overall supply chain quality. To deepen cooperation and communi-

satisfaction rate. cation the Company proactively conducts supplier inspections before bidding and organizes on-site exchanges and acceptance after contract

awards. For engineering equipment suppliers the Company focuses on inspecting factory scale product quality technical capabilities and proj-

ect track records to ensure the supply chain remains secure reliable and sustainable.During the reporting period

Equal Treatment to Small and Medium-sized Enterprises

Number of customer service Telephone customer service Online customer service To ensure that small and medium-sized suppliers can participate in competition fairly the Company implements a supplier shortlisting system.

59 100 All bidding projects are selected from a qualified supplier database on a merit basis and external suppliers can be shortlisted after passing a personnel: satisfaction rate: % satisfaction rate: 100% qualification review. This guarantees that all types of suppliers including SMEs have equal access to competitive opportunities. In 2025 the

Company conducted training for suppliers including SMEs providing standards and requirements for key management points in shortlisting bid

100 opening bid evaluation and inquiry/comparison processes.Customer complaint resolution rate: % Customer commendations and acknowledgments: 1500 times

41 42Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Selected Safety and Health Systems of Member Companies

During the reporting period

Shandong Heze Fulin Thermal Technology Co. Ltd. Jiangsu Luen Mei Bioenergy Co. Ltd.Number of annual contracted suppliers:255 Supplier audit coverage rate: 100%

Work Safety Management System Compendium of Safety Management Systems of Jiangsu Luen

Mei

Administrative Measures for Work Safety Rewards and Penal-

ties

Incidents of overdue payments to SMEs:0 Responsible procurement rate: 100% Administrative System for Safety Risk Announcements

Emergency Rescue Plan for Work Safety Accidents Emergency Plan for Safety Accidents at General Cargo

Terminals

Detailed Rules for the Work Safety Responsibility System for

All Staff

Administrative Regulations on Special Operations

Safeguarding Employee Rights and Well-being Anti-Violation Management System

Administrative System for Labor Protection Equipment Shenyang Xinbei Thermal Power Co. Ltd.Luen Mei Quantum consistently regards talent as the core driving force for corporate sustainability. Adhering to the value philosophy of "healthy

development and happy work" the Company has systematically constructed and continuously refined a human resources management system 13 safety-related operational procedures

that covers occupational health and safety (OHS) employee rights protection diversified compensation and benefits full-lifecycle career devel-

25 specialized emergency plans covering natural

opment and systematic training empowerment. The Company is committed to fostering a safe equitable respectful and inclusive workplace disasters accidents public health incidents and social

that supports employees' continuous development enabling the alignment and mutual advancement of employee and corporate value. Shenyang Hunnan Thermal Co. Ltd. safety incidents

Hunnan Thermal Work Safety Management System

Work Safety and Fire Safety Responsibility System for Shenyang Guorun Low Carbon Thermal Power

Occupational Safety and Health Various Positions of Hunnan Thermal Co. Ltd.Implementation Manual for Risk Classification Control and

Occupational Safety and Health Management System Hidden Risk Identification and Rectification System Con- Work Safety Management System

struction

The Company prioritizes work safety and employee occupational health within its operational management. Strictly following the Work Safety Administrative System for Work Safety Accidents

Law of the People's Republic of China the Interim Provisions on the Identification and Rectification of Hidden Risks in Work Safety and the Guidelines Assessment System for Work Safety Responsibility

for the Implementation of Hidden Risk Identification and Rectification for Hazardous Chemical Enterprises the Company has built a top-down OHS

Work Safety Management System

management system.Administrative Regulations on Hidden Risk Identification and

Rectification

the Company-level management coordinates the revision and improvement of relevant systems across all Guohui Environmental Protection New Energy Anti-Violation Management Regulations

member entities while providing supervision and guidance on work safety. The Company continuously Co. Ltd.Work Safety Responsibility System for Various Positions at

promotes the construction of management systems within member entities to establish a long-term

Work Safety Management System Levelsmechanism for work safety. Under the unified deployment of the Company the Safety Inspection Depart-

In terms of governance ments of various member entities refine their OHS management systems based on their specific business 2024-2025 Work Safety Targets and Control Measures

architecture characteristics to ensure the effective implementation of management requirements.Work Safety and Fire Safety Responsibility System for Various

Positions Shenyang Guoxin Environmental Protection New Energy Co. Ltd.the Company has established a part-time safety officer management mechanism within frontline produc- Work Safety Management System

tion entities. Recommended by their respective departments and having passed training assessments

Work Safety and Fire Safety Responsibility System for Various

certain employees serve as part-time safety administrators for their departments or teams while fulfilling Positions at Levels

their primary duties. Under the guidance of the member entity's Safety Inspection Department these

Regarding grassroots part-time safety officers assist the primary persons in charge of work safety in daily management further Three-Year Action Implementation Plan for Special Rectifica-

implementation tion of Work Safety

consolidating the grassroots safety responsibility network.

43 44Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Strengthening Safety Training

The Company views safety training as a key lever for ensuring the effectiveness of the safety management system. Based on the Administrative Work Safety Management

System for Employee Education and Training the Company has established a tiered and comprehensive safety training mechanism: For safety

management personnel it organizes regular specialized external training to enhance professional literacy; for all employees it conducts annual

routine safety education to maintain safety awareness; and the Safety Inspection Departments of member companies organize monthly special- Hunnan Thermal attaches great importance to employee occupational health and safety management producing the

ized training and practical drills for part-time safety officers. These efforts strengthen safety knowledge reserves and emergency response capa- Guoxin Newsletter: Safety Special Issue. The special issue centers on the theme "Everyone Speaks Safety Everyone Knows

bilities pushing safety management from institutional constraint to internal competence. Emergency Response — Identifying Safety Hazards Around You." It combines references to social safety cases with the

Company's actual safety practices providing in-depth discourse across three dimensions: safety hazards safety guard-

ianship and the awakening of safety awareness. The publication highlights easily overlooked hazards such as electric

vehicle battery explosions and gas valve leaks while showcasing actual work scenarios such as monthly routine safety

Guohui New Energy Conducting Hidden Risk Identification training normalized emergency drills and employees proactively reporting and disposing of hazards thereby interpreting

and Accident Prevention the essence of "Everyone is a Safety Officer." To make the safety philosophy more resonant it incorporates quotes from

the Roman philosopher Seneca verses by the poet Ai Qing and simple yet powerful slogans like "Every time you fasten

Guohui New Energy fully implements the safety requirements of both the government and Luen Mei Quantum by organizing your seatbelt it's like a promise to your family." The special issue profoundly explains the significance of safety for family

regular hidden risk identification to promptly discover and eliminate potential production safety hazards. Guohui New happiness and career development advocating for the internalization of safety regulations into daily habits and the trans-

Energy conscientiously conducts company-level and department-level safety inspections while strengthening oversight of formation of emergency drills into muscle memory. This initiative helps transform "Everyone Speaks Safety Everyone

outsourced projects. Knows Emergency Response" from a slogan into a conscious action fortifying the Company's safety firewall and promot-

ing a robust corporate safety culture.As of the end of 2025 Guohui New Energy conducted 37

company-level safety inspections and identified 853

safety hazards including 537 items related to in-plant

and external networks and 316 items related to

outsourced engineering. The rectification (or monitoring)

rate of these safety hazards reached 100% effectively During the reporting period

curbing the occurrence of production safety accidents.Investment in work-related injury insurance: Coverage rate of work-related injury insurance: Work-related fatalities:

RMB 0.01 million 100% 0

Prioritizing Occupational Health

The Company strictly follows the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and the Administra-

tive Measures for Occupational Health Examinations fully integrating employee health management into daily operations. For positions with

occupational disease risks the Company signs an Occupational Disease Hazard Disclosure Form simultaneously with the labor contract clearly Employee Employment and Rights

informing employees of potential hazards occupational contraindications and corresponding protective measures to ensure their right to know

and health interests are fully protected. In daily management the Company continuously reinforces labor protection management and systemat- Luen Mei Quantum strictly complies with the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of

ically promotes occupational safety risk identification and assessment across all member entities. By strengthening the treatment of occupa- China and the Trade Union Law of the People's Republic of China among other laws and regulations. Adhering to the principles of fairness

tional hazard factors and improving the working environment the Company reduces occupational health risks at the source. Additionally the impartiality and openness the Company standardizes labor practices in accordance with the law and earnestly respects and safeguards the

Company organizes regular occupational health check-ups for all active employees and conducts in-depth occupational health education to legitimate rights and interests of all employees. The Company fully implements an equal and non-discriminatory employment policy resolutely

consistently enhance employees' awareness and self-protection capabilities effectively preventing the occurrence of occupational diseases and eliminates child labor and any form of forced labor and ensures the legality and compliance of all employment practices.comprehensively safeguarding employee health rights.

4546

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CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Employee Structure

In terms of labor relations management Regarding compensation and benefits

the Company continues to strengthen its institutional frame- the Company provides employees with competitive remuner-

work signing labor contracts with all employees in accor- ation and pays basic endowment insurance basic medical

dance with the law and conducting routine supervision and insurance unemployment insurance work-related injury

inspections of labor usage. Through forms such as the insurance maternity insurance and housing provident funds

Employee Representative Congress the Company actively for all staff in accordance with the law. During the reporting

promotes democratic management and extensively listens to period both the labor contract signing rate and social insur-

employee opinions and suggestions to build harmonious and ance coverage rate remained at 100% fully reflecting the Employee Employee age Employee education

stable labor relations. Company's commitment to and responsibility for compre- gender structure structure structure

hensive employee rights protection.Proportion of female employees 88.15% Proportion of employees under 30 51.03% High school and below 54.10%

In 2025 the Company systematically carried out campus recruitment through various forms such as presentations job fairs and institutional

exchanges. A total of 17 offline campus presentations were held forming a standardized campus recruitment system that continuously bolsters Number of male employees11.85% Proportion of employees aged 30-50 30.08% Bachelor's and junior college 44.69%

the talent reserve and provides strong support for the Company's sustainable development.Proportion of employees over 50 18.89% Master's and above 1.20%

Equal Treatment

The Company strictly follows non-discriminatory

Lawful Employment recruitment criteria. Employees of different genders

ethnicities and religious beliefs enjoy a unified fair

The Company continues to refine its and non-discriminatory environment regarding

human resources management system During the reporting periodcompensation promotion and talent development

signing labor contracts with all employ- mechanisms.ees to stipulate their rights. Strictly

Total number of employees: Total number of new hires: Labor contract signing rate:

adhering to the Provisions on the Prohibi-

tion of Using Child Labor and the legal Democratic Management 2573 951

requirements of the countries/regions 100%The Company implements a democratic

where it operates the Company reso- management system centered on the

lutely prohibits the recruitment of child Employee Representative Congress

labor and opposes all forms of forced encouraging employees to contribute sug-

labor. The Company has implemented a Social insurance coverage rate: Employee satisfaction rate:gestions for corporate development. All

labor employment supervision and subsidiaries regularly convene an Employ-

inspection system conducts periodic Employee ee Representative Congress to proactively 100% 100%

spot checks on labor management Employment solicit employee feedback and address

practices and provides human rights and Rights their practical needs.protection training to all employees. No

incidents of child labor or forced labor

occurred in 2025.Employee Care Compensation and Benefits

Adhering to the "healthy development happy work" The Company actively reforms its compensation

philosophy the Company strives to balance work and system providing remuneration no lower than the

life. The labor union organizes regular activities such as local average and full payment of "five insurances

Spring Festival celebrations employee birthday parties and one fund" (including housing provident fund

and International Women's Day events. In 2025 the contributions at the maximum ratio). In 2025

Company organized multi-level and diversified employ- social insurance coverage and labor contract sign-

ee care initiatives enriching employees' leisure lives ing rates both reached 100%.while further boosting morale and cohesion.Speech contest Employee birthday party

47 48Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Career Development and Training

Luen Mei Quantum continues to refine its talent management system systematically building organizational capabilities to support sustainable

development by focusing on key links such as talent standards recruitment optimization reserves cultivation and the developmental environ-

ment. During the reporting period the Company released its first Key Position Talent Standards covering roles such as grassroots team leaders

middle management and assistants to general managers. These standards define selection criteria across dimensions like education major

and performance providing a systematic basis for professional promotion. Regarding inter-

nal promotion through comprehensive talent reviews and rigorous assessments the Com-

pany promoted 19 management cadres at or above the middle-management level (including

5 members of the management leadership team and 14 at the manager level) and selected

30 grassroots management personnel for promotion ensuring the dynamic iteration of the

Special contribution selection & commendation New year celebration & annual gala talent pool. Furthermore the Company strengthened its talent reserve layout at the organiza-

tional level by establishing deputy head positions in core production management depart-

ments and introducing assistant-level reserve roles such as "Team Leader Assistant Depart-

ment Director Assistant and General Manager Assistant". These initiatives have effectively

deepened the talent bench and provided employees with clear and orderly career develop-

ment paths.The Company has constructed a systematic internal cultivation framework to advance talent development and capability enhancement through

layered and categorized programs. During the reporting period the Company launched the second phase of the "Successor" Talent Development

Project. Thirty trainees were selected through multi-dimensional evaluations and divided into three echelons: "Luen Mei Generals" "Luen Mei

Eagles" and "Luen Mei Artisans". To support this 25 mentors from corresponding levels were appointed to conduct coaching forming a core

talent pipeline cultivation mechanism. For campus hires and new employees the Company introduced a mentorship system assigning dedicat-

ed mentors to 10 "Mei Yu Students". Simultaneously a job rotation mechanism was established: trainees in the core talent pipeline undergo

Hiking & walking activity Annual merit evaluation & recognition quarterly rotations while "Mei Yu Students" participate in full-position practice to comprehensively enhance their integrated capabilities. In

terms of training implementation four PMP practical project management sessions were organized throughout the year covering over 80 atten-

dances. Additionally over 50 training sessions on the Administrative Measures for the Punishment of Non-compliance and Fraud were conduct-

ed reaching 2482 attendances. Monthly online customized training courses were also pushed to over 150 employees to continuously enhance

professional literacy and compliance awareness. Through this diversified training system and mentorship mechanism the Company has effec-

tively strengthened its talent pipeline and provided systematic support for employee growth driving the continuous improvement of organiza-

Speaking of "Extraordinary" Through Voice tional capacity.In 2025 Luen Mei Quantum participated in the Luen Mei Group 4th Speech Contest. Themed "Extraordinary in the Ordinary"

the contest allowed employees to share their voices through speeches ensuring that the spirit and qualities shining silently

in daily work were seen and remembered. This event further enriched the Group's cultural connotations enhanced employ-

ees' sense of belonging and allowed corporate culture to be deepened and inherited through exchange and sharing. The "Successor" Talent Development Program

"Luen Mei Commander"

Under the unified planning of Luen Mei Quantum Luen Decision- Project

makers

Mei Group officially launched the second phase of the (M6)

"Luen Mei General" Phase I: 7 Phase II: 5

"Successor" Talent Development Project in August 2025. 2 graduatesHigh-level managers Project participants participants

(M5 M4 & M3)

Following internal talent reviews multi-layered selection

10 graduates "Luen Mei Eagle" Phase I: 25 Phase II: 15

and rigorous deliberation 30 outstanding trainees were Middle-level managers Project participants participants(M1 & M2)

selected to enter the cultivation program. Phase I: 43 Phase IV: 46

Grassroots managers participants; participants;"Mei Yu Student"

(P3 & P4) Phase II: 20 Phase V: 4 Project participants; participants;

Phase III: 5 Phase VI: 18

participants; participants

Grassroots employees

(Professional P/Operational O) "Luen Mei Artisan" Phase II: 10

Project participants

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CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Sustained Cultivation of "Mei Yu Student" Talent Building Strong Work Relationships through "Pass-Help-Guide" Mentorship

In 2025 the Company organized over 10 training ses- The Company assigned 5 mentors for "Luen Mei Gen-

sions for the "2026 Mei Yu Students" covering more eral" trainees 15 mentors for "Luen Mei Eagle" train-

than 10 participants. Activities included new employee ees 5 mentors for "Luen Mei Artisan" trainees and 10

integration training outward bound exercises "Campus mentors for the "2026 Mei Yu Students". By adopting

to Corporate" transition workshops mentorship cere- the "Pass-Help-Guide" model the Company has built

monies strength-based workshops boiler knowledge positive work relationships. These designated men-

training and site visits to member companies. These tors help employees improve professional skills orga-

sessions helped "Mei Yu Students" rapidly transition nizational integration and teamwork cultivating the

their mindsets from students to professionals. Through talent necessary for enterprise development.the "Pass-Help-Guide" mentorship they achieved com-

prehensive improvements in professional knowledge

and practical skills. In early October "Mei Yu Students"

were dispatched to various member companies to com-

plete professional training and practical rotations in key

positions as planned.During the reporting period

Total number of employees participating in training: Percentage of middle management trained:

250014%

Synergizing Talent and Career Development Percentage of grassroots employees trained: Training expenses:

85% RMB 136000

To enhance the skills of management and backbone

employees and improve organizational efficiency the

Total attendances in job-related knowledge and skills training: Average training hours per employee:

Company conducted four sessions of "PMP Practical

Project Management Training" for management 1233 3.04 hours/person

personnel involved in project management at Luen Mei

Group headquarters and member companies covering

over 80 attendances. Through this training business Average training hours for middle management: Average training hours for grassroots employees:

backbones gained practical solutions and a significant

leap in project management capabilities injecting new 3.00 hours/person 3.00 hours/person

momentum into Luen Mei Group's project management

system. In addition company-wide training on the

Administrative Measures for the Punishment of Non-compli-

ance and Fraud of Luen Mei Group was conducted with

more than 50 sessions organized separately by head-

quarters departments and member companies cover-

ing all employees of Luen Mei Group totaling 2482

attendances.

5152

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Case CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Connecting Households and Sharing Harmony

Advancing Social Harmony and Community Guoxin New Energy Enhancing Warmth to Empower Communities

Co-construction

In 2025 Guoxin New Energy focused on securing heating for people's

livelihoods and launched several heartwarming public welfare initiatives.Luen Mei Quantum actively fulfills its social responsibilities while creating economic benefits committing itself to giving back to communities

To address heating facility issues Guoxin New Energy provided free

serving residents and supporting local economic development. Leveraging its resource advantages in human capital capital and technology the

services such as pipeline dredging and door/window sealing for

Company focuses on issues such as rural revitalization public welfare and community construction promoting the coordinated development of

residents installing sealing strips for 45 households and door curtains for

the enterprise and society.

56 households. Guoxin New Energy repaired insulation for 60 residential

building corridors and distributed 55 indoor thermometers free of charge.Lawful Tax Payment Guoxin New Energy installed 13 sets of radiators for 11 households

aLawful tax payment is a vital social responsibility for an enterprise. While generating economic value Luen Mei Quantum adheres to lawful and providing entirely free services for elderly people living alone and

honest tax payments to drive regional development. In 2025 the Company's total tax payment amounted to RMB 293 million contributing to extremely impoverished groups. Additionally Guoxin New Energy provid-

national and local economic development and social progress. ed free door-to-door installation of cotton door curtains and window

seals for 54 households including underprivileged individuals the

disabled and empty-nesters. Guoxin New Energy also installed indoor

Collaborating for Rural Development temperature collection equipment for 10 households with special layouts

for free. For 7 households where temperatures remained below standard

The Company insists on taking root in local areas and deepening localized operations viewing this as a key path to promoting synergy and inte-

even after improvements Guoxin New Energy provided a monthly elec-

gration between the enterprise and the region. Against the backdrop of comprehensively advancing rural revitalization the Company combines

tricity subsidy of RMB 100 per household. Simultaneously Guoxin New

its core clean energy business with the continuous expansion of its biomass energy sector. By effectively utilizing agricultural and forestry waste

Energy balanced overall heating optimization by adjusting heating

from rural areas the Company fulfills its fundamental function of providing heating security. This integration of resource recycling and livelihood

parameters across different areas. Guoxin New Energy has also coordi-

services helps build a sustainable development pattern characterized by green low-carbon and urban-rural integration.nated with municipal housing departments to implement "warm housing"

renovations for 36 buildings in the Meijiangxi Community in 2026 ensur-

ing that the public can spend the winter in warmth.Public Welfare Activities

The Company consistently upholds the public welfare philosophy of "taking from society giving back to society". The Company actively performs

its duties as a corporate citizen and consistently participates in social welfare undertakings to assist in community development and the

improvement of people's livelihoods. During the reporting period the Company organized various forms of public welfare actions effectively con-

verting corporate resources into social value.

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CaseLuen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Key Performance Indicators

Key Performance Indicators

Environmental Performance Social performance

55 56Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Indicator Index

Indicator Index

GRI Content Index

Governance performance

57 58Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Indicator Index

59 60Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Indicator Index

61 62Luen Mei Quantum Co. Ltd. 2025 Environmental Social and Governance Report Feedback Form

Content Index of Guidelines No. 14 of Shanghai Stock Exchange for Self-Regula-

tion of Listed Companies — Sustainability Report (Trial) Feedback Form

Dear Readers

Hello! Thank you for reading the 2025 Environmental Social and Governance Report of Luen Mei Quantum Co. Ltd. We highly value and look

forward to hearing your feedback regarding our ESG reporting. Your comments and suggestions serve as a vital basis for us to continuously

advance our corporate sustainability management and practices. We sincerely hope you can provide your insights on this report and our work.You may return this questionnaire to us via mail email or fax or call us directly to share your valuable opinions.Multiple Choice (Please mark with a where appropriate)

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Open-Ended Questions

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If you have any questions or comments regarding the report please contact us through the following channels:

Email: zhangyao@luenmeichina.com

Address: No. 1 Middle Yuanhang Road Hunnan New District Shenyang

Postal Code: 110179

Tel: 024-23784835

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