2025

Environmental Social and

Governance (ESG) ReportContents

01 Corporate Governance 03 Industry Value 05 Annex

About the Report 4

Governance for Sustainable 16 Responsible Supply Chain 52 Indexes 94

Message from Chairman 6 Development

Innovation-Driven Development Feedback Form 96

Standardized Governance 2820

About Ancai Hi-tech Product and Service Safety and 8 64Risk Management and Internal Quality

23

Control Data Security and Customer 70

Privacy Protection

Investor Relations Management 24

Business Behaviors 26

02 Environmental Protection 04 Better Life

Response to Climate Change 32 Protection of Employees’ Rights 76

and Interests

Environmental Management 34

Employee Training and 82

Energy Utilization 43 Development

84

Water Resource Utilization 46 Occupational Health and Safety

Material Utilization 48 Social Contribution 922025 Environmental Social and Governance (ESG) Report

Reporting Scope This report covers Ancai Hi-tech and its subsidiaries. Unless otherwise specified the

scope of this report is consistent with the scope of the Company’s Annual Report.About the Report Reporting Period This report covers the period from January 1 2025 to December 31 2025 (the “Reporting Period”). To improve the comparability and completeness some sections

of this report may be appropriately referred to previous years or contain forward-

looking statements. This report is released on an annual basis consistent with the

financial year.This report is the second Environmental Social and Governance (ESG) Report publicly disclosed by Henan Preparation Basis Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4 -Ancai Hi-tech Co. Ltd. (hereinafter referred to as “Ancai Hi-tech" "the Company" or "we"). In the principles of Preparation of Sustainability Report (Revised in January 2026)objectivity standardization transparency and comprehensiveness this report provides a detailed disclosure of and References Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 -

the Company’s practices and performance in environmental social and governance for the year 2025. Sustainability Report (for Trial Implementation)China Enterprise Reform and Development Society “Guidelines for SustainableDevelopment Reports of Chinese Enterprises (CASS-ESG6.0)”

Sustainability Reporting Standards of the Global Reporting Initiative (“GRI Standards”)

Sustainable Development Goals (SDGs) of the United Nations

Guiding Opinions on the Fulfillment of Social Responsibility by Central Enterprises

issued by the State-owned Assets Supervision and Administration Commission of the

State Council

Data Explanation Data sources used in this report include public data from government agencies

the actual operational data annual financial data internal statistical reports of the

Company third-party questionnaire surveys third-party evaluations or interviews etc.The financial data in this report is expressed in RMB. For any discrepancy between this

report and the financial statements the financial statements shall prevail.Explanatory Note For ease of expression and reading Henan Ancai Hi-tech Co. Ltd. will be referred

to as "Ancai Hi-tech" "the Company" or "we" throughout this report. Additionally

the definitions of abbreviations used in this report can be found in the "Definitions"

section of the 2025 Annual Report of Henan Ancai Hi-tech Co. Ltd.A ccess to This This report is available for review and download on the official websites of Ancai Hi-

tech (http://www.acht.com.cn) or the Shanghai Stock Exchange (http://www.sse.Report com.cn).

4 52025 Environmental Social and Governance (ESG) Report

Message from Chairman

A thriving industry is the foundation of a thriving company and innovation is the key to

As time moves forward new chapters continue to unfold. In 2025 amidst the accelerating global green transition

strengthening that foundation.and ongoing industry cycles Ancai Hi-tech steadfastly embraced its mission as a state-owned enterprise. We have

seamlessly integrated ESG concepts into our corporate strategy and operational practices. Through collaboration with In response to industry challenges we place innovation at the heart of our strategy focusing on core sectors and

our partners we have overcome challenges and successfully executed key ESG initiatives for the year delivering a report proactively expanding into the high-end materials field. At the same time we uphold the principles of a responsible supply

that reflects our commitment to responsible compassionate and resilient development. chain enhancing supplier management systems ensuring the quality of our products and services and receiving high

acclaim from the international community.We are firmly convinced that strong corporate governance is the bedrock upon which

long-term stability and growth are built. Our employees are our most valuable asset and society is the fertile ground upon which

our growth is nurtured.The Company remains dedicated to enhancing its governance structures strengthening the leadership and oversight

roles of the Board of Directors reinforcing risk management and internal controls and fostering an efficient and We are committed to a people-first approach safeguarding the legal rights and interests of our employees creating robust

collaborative management framework. These efforts ensure the sustainable development of the Company while platforms for training and development and fostering a high-quality work environment that enables mutual growth for both

safeguarding the rights and interests of all our stakeholders. our employees and the Company. Furthermore we take our social responsibilities seriously engaging in public welfare

charitable causes and rural revitalization initiatives. Through these actions we aim to give back to society and spread

Green is not only the defining color of progress but it also embodies the essence of

warmth and strength to those in need.responsibility.Looking back at 2025 every milestone achieved was made possible by the trust and support of everyone who stands with

We are deeply committed to the principles of green development aligning closely with the nation’s "dual carbon" targets.us. As we look to the future we remain resolute in our mission and unwavering in our commitment to progress. Ancai Hi-

By integrating environmental sustainability into every facet of our operations we advance the construction of green

tech will continue to deepen its ESG management system with a focus on green development innovation-driven growth

factories the application of clean energy and innovations in energy-saving technologies. By staying true to our green

and responsible business practices. We will strengthen our core operations tackle emerging challenges and contribute

development commitments we aspire to set a benchmark for green manufacturing within our industry.even more to the advancement of our industry the development of society and the protection of the environment.Once again we extend our most sincere gratitude to all our friends for your enduring care and support. We look forward to

continuing this journey together moving toward a beautiful and sustainable future.Signature of Chairman:

6 72025 Environmental Social and Governance (ESG) Report

About Ancai Hi-tech Industrial Layout

Photovoltaic Float Glass

Business Business

Company Henan Ancai Hi-tech Co. Ltd. (hereinafter referred to as "Ancai Hi-tech") was originally Mainly engaged in the research and production of solar photovoltaic glass the Company has T h e C o m p a n y i s i n v o l v e d i n t h e

established as Henan Anyang Color Picture Tube Glass Co. Ltd. a key national project under the established production bases in Anyang Jiaozuo and Xuchang. It can produce photovoltaic product ion of so lar thermal g lass

glass products in various thicknesses sizes and full ranges with product quality meeting products and is one of the earl iest

Profile "Seventh Five-Year Plan" approved in 1984. Ancai Hi-tech was established with a focus on glass industry advanced standards and exports to multiple countries and regions. enterprises to achieve mass production

tube products in 1998 and was listed on the Shanghai Stock Exchange in 1999 (Stock Code: of solar thermal glass. Its products are

used in large domestic and international

600207). The Company is headquartered in Anyang Henan Province with key operational sites solar thermal power station projects.

in Anyang Jiaozuo Xuchang Puyang and other regions. High-end float glass is applied in high-

end building projects.Since its establishment the Company has focused on the research innovation and production

of high-end glass materials. Its business spans photovoltaic glass float glass natural gas Pharmaceutical Glass Intelligent Gas Business Manufacturing

pharmaceutical glass quartz tubes and intelligent manufacturing among other fields. Through Business Business

continuous technological innovation and industrial upgrading the Company has gradually The Company has established a natural The Company focuses on developing The Company is engaged in the research

gas transmission and comprehensive medium borosilicate pharmaceutical glass and manufacturing of automated and

transitioned from a single-regional layout to multi-regional collaborative development from

o p e r a t i o n s y s t e m o w n i n g 2 4 9 mastering core production technologies intelligent equipment for glass production

homogeneous competition to high-end development and has expanded its industrial chain kilometers of natural gas pipelines. It and advancing the extension of the producing calender rol ls automatic

has achieved interconnection with the industrial chain to support the domestic sheet loading and unloading equipment

and optimized its business structure improving the quality of its development and industry

gas sources of Sinopec and CNPC and substitution of high-end pharmaceutical and line connection equipment among

competitiveness. is engaged in LNG/CNG sales as well glass. others.as natural gas maintenance services.Looking to the future Ancai Hi-tech will seize the opportunity of the global green and low-

carbon energy transition adhere to an innovation-driven development strategy deepen

technological research and development and industrial upgrades actively contributing to Corporate Culture

energy structure transformation and steadily advancing towards the goal of becoming a world-

class glass manufacturing company with global competitiveness.Challenge the world’s advanced standards

Corporate Mission Contribute to the progress of human civilization

Strive to scale new heights in technological innovation

Corporate Vision Build a high-end glass manufacturing base

"Three Non-Absolutisms": Respect superiors without being subordinate to them; learn from

Core Values foreign practices without blindly imitating them; study books without being bound by them."Three Emphases and Three Non-Emphases": Emphasize subjective factors over objective

conditions; emphasize internal causes over external factors; emphasize oneself over others

Ten Spirits: Seeking truth from facts; unity and striving forward; tenacity and

hard work; pioneering and innovation; aligning words with actions; openness

Our Spirit and uprightness; hard work in entrepreneurship; courtesy and modesty; selfless

dedication; winning honor for the country

8 92025 Environmental Social and Governance (ESG) Report

Development History

1998200120032009

Groundbreaking of Ancai Energy’s West-

Commissioning of Phase IV Color Glass Project Commissioning of Phase I Photovoltaic Glass Commissioning of Phase III Color Glass Project East Gas Transmission Project’s Northern Project

Henan Branch

199920072011

Ancai Hi-tech’s A-share listing Acquisition of controlling stake in Ancai Hi-tech by Commissioning of Phase II Photovoltaic

Henan Investment Group Co. Ltd. Glass Project

2018202020222024Groundbreaking of Ancai Hi-techs’ “ Relocating Commencement of the connection project Groundbreaking of the High-Purityfrom Urban Area to Industrial Park” Project between Ancai Energy’s Northern Henan Branch

Commissioning of the Xuchang Ancai

Photovoltaic Lightweight Substrate Project Semiconductor Quartz ProjectLine and the Yu-Ji Pipeline

2019202120232025

Commissioning of the Photovoltaic New Commissioning of Jiaozuo Ancai Commissioning of the Pharmaceutical Acquisition of equity in Henan High-

Materials Project Photovoltaic Glass Project Glass Project Purity Mineral Technology Co. Ltd.

10 112025 Environmental Social and Governance (ESG) Report

Honors & Certificates Milestones in 2025

· Jiaozuo Ancai honored as Henan Provincial Technology Research Center and the second batch

January of Specialized Sophisticated Distinctive and Innovative Small and Medium Enterprises in Henan

Province for 2024

March · Ancai Solar Thermal Technology selected for Henan Provincial Key R&D Special Projects

· Successful conclusion of Ancai Hi-tech’s 2025 Employee Badminton Tournament· Completion of the reelection of Ancai Hi-tech’s "Two Committees” (Party Committee and

Discipline Inspection Committee)April · Organization of a reading club event themed “Enriching the Enterprise with Books IlluminatingLeading Enterprise Henan Province's the Original Aspiration through Reading”

in Henan Province's Manufacturing Single · Holding of the “May 4th Youth Poetry Recital” by Ancai Hi-tech

Manufacturing Industry Champion Enterprise

· Awarding of the title “National Model Worker” to an employee of the Company

May · Organization of a Mother’s Day-themed creative handicraft event “Hats as Beautiful as Flowers”

by Ancai Hi-tech

· Inclusion of Ancai Hi-tech in the 2025 Global New Energy ESG Top 100 List

June · Successful convening of the 3rd Member Representative Meeting and Staff Representative

Meeting of the Ancai Hi-tech Labor Union Committee

July · Hosting of the National Staff Glass Quality Inspection Skills Competition

Top 100 Global New Energy · Successful attainment of ISO three-system certification (Quality Environment Occupational Green Factory in Henan

August Health & Safety) by Xuchang Antimony MaterialsProvince ESG List · Establishment of the Xuchang Municipal Overseas Intellectual Property Rights Protection and

Assistance Workstation at Xuchang Ancai

· Successful application for 246 Green Electricity Certificates (GECs) by Xuchang Ancai

September · Participation of Ancai Hi-tech as one of 30 outstanding enterprises from Henan Province in the World Manufacturing Convention

· Successful passing of the Customs AEO Advanced Certification review by Ancai Hi-tech

October · Conducting of a Double Ninth Festival (Chongyang Festival) care visit to the Company’s resident village assistance site by Ancai Hi-tech

November · Hosting of the National Staff Electrical Automation Maintenance Electrician Skills Competition by Ancai Hi-tech

Excellent Organization Award First Prize in the National Employee

in the National Employee Electrical Automation Maintenance

Glass Quality Inspection Skills Electrician Skills Competition (Team · Hosting of the 2025 Anyang City Work-related Injury Prevention Themed Publicity Campaign

Event) December · Organization of a Voluntary Blood Donation ActivityCompetition · Conducting of pre-holiday (New Year and Spring Festival) on-site assistance visits and care

activities by the Company to Hezhuang Village Jiaohu Town Huaxian County

12 132025 Environmental Social and Governance (ESG) Report

Governance for Sustainable

Development

Corporate Governanc1e Standardized GovernanceRisk Management and Internal ControlInvestor Relations ManagementBusiness Behaviors14 152025 Environmental Social and Governance (ESG) Report

Sustainable The Company continuously enhances employees' understanding and practical ability

regarding sustainable development through ESG-related training and awareness activities.Development This promotes the formation of a company-wide consensus on sustainable development

01 providing strong support for the Company's long-term value creation and social Practices sustainability.

Governance for Sustainable [Case] ESG Work Diagnosis and Effectiveness Improvement Seminar

Development On October 20 2025 the Company's Strategy and

Sustainability Committee organized the ESG Work

Diagnosis and Effectiveness Improvement Seminar.Ancai Hi-tech continues to focus on ESG governance work and gradually integrates these concepts The seminar involved the ESG Working Group relevant

into its business management. Building on a sound governance framework and optimizing management subsidiaries and departmental representatives to

mechanisms the Company actively fulfills its corporate social responsibility and steadily promotes discuss new regulations review work processes and

environmental social and governance-related efforts striving to achieve the coordinated development of exchange ideas. The session provided a comprehensive

enterprise economy environment and society. summary of the ESG report preparation process

identified areas for improvement and offered guidance

to continually enhance ESG disclosure quality and

management efficiency. Training site

Sustainable The Company has embedded environmental social and governance standards into its business management processes. It has formulated the Implementation Rule of the Strategic and Sustainable [Case] Special Training on Social Responsibility Management System

Development Development Committee of the Board of Directors and established a three-tier ESG governance structure involving the "Board of Directors Strategy and Sustainable Development Committee and

Strategic Working Group/ESG Working Group" promoting cross-departmental collaboration in ESG- In July 2025 Jiaozuo Ancai conducted a special training Governance on the social responsibility management system for its related work and steadily enhancing the professionalism and systematization of the Company's mid-level management personnel and internal auditors.System ESG management. The training covered fundamental understanding of social responsibility interpretation of regulations and

standards and the establishment and operation of the

system with a focus on the GB/T39604-2020 standard

and the PDCA cycle mechanism. The entire process

Board of Directors Strategy and Sustainable from system planning and implementation to checking Development Committee and improvement was systematically explained. This

training enabled participants to gain a fundamental

understanding of the social responsibility management

Study and propose recommendations related system and practical methods effectively enhancing

Review and approve ESG-related proposals to the Company's ESG work coordinate and employees' awareness of social responsibility and their

submitted by the Strategy and Sustainability promote the establishment of the ESG system sense of duty. It laid a strong talent foundation for the

Committee of the Board of Directors as well identify and assess ESG risks supervise and implementation of the corporate social responsibility Training site

as major ESG development matters for the evaluate the implementation of ESG work review management system.Company the content of ESG information disclosures and

report to the Board of Directors

Social Responsibility Management System Certificate

Strategic Working Group ESG Working

Group

Provide relevant materials such as business Assist in sett ing ESG goals and long-term

financial and macro-policy data to support the development directions collaborate with various

strategic and ESG work's preliminary research departments in formulating ESG action plans

and preparation and track progress and review ESG reports and

related disclosure documents to ensure their

completeness and accuracy

16 172025 Environmental Social and Governance (ESG) Report

Communications The Company places great importance on communication with stakeholders. Adhering to an open Assessment Process of Material Topics

and transparent communication philosophy it continuously expands and enriches communication

with Stakeholders channels establishes efficient and regular communication mechanisms to promptly understand

the expectations and demands of stakeholders in a timely manner and actively converts feedback The Company analyzes its own situation understands the requirements of the capital

into specific actions. The Company maintains close cooperation and collaborative development Step 1: Topic collection markets rating agencies domestic and international standards regulatory policies and

with various stakeholders continuously gathering collective effort to promote stable corporate industry best practices as well as topics including stakeholders’ expectations public

development and achieve mutually beneficial outcomes. concerns and media coverage.Stakeholders Material Topics of Concern Main Communication Methods and Channels

Step 2: Topic

Company website and WeChat official account; identification The collected topics are then organized and identified.General Meeting of Shareholders;

Communications with stakeholders; Regular reports and announcements;

Shareholders Due diligence. Performance briefings;

and investors Investor hotline and email; Step 3: Topic evaluation Topic research surveys stakeholder interviews and other methods are used for

SSE e-Interactive platform; and prioritization evaluation.On-Site investor research visits.Environmental compliance management;

Response to climate change;

Government Pollutant emissions;

Meeting communication; Step 4: Evaluation of the

Daily supervision and communication; Each topic undergoes a comprehensive analysis and importance assessment.Waste disposal; materiality of topics

and regulatory Information disclosure and submissionAnti-commercial bribery and anti-corruption;

authorities Anti-unfair competition;

Due diligence

Employee Congress; Step 5: Formation of a Based on the importance of each topic and its relevance to the Company's operations

Employee symposium; matrix of material topics and stakeholders the topics are prioritized to form a matrix of material topics.Work meetings;

Employees Employees Employee training;

Employee satisfaction surveys;

Employee activities;

Work performance evaluations Matrix of Material Topics

Daily communication;

Product and service safety and quality;

Customers Customer service; Circular economyData security and customer privacy protection Satisfaction surveys Communications with stakeholders

Water resource utilization Pollutant emissions

Equal treatment of small and medium-sized enterprises Response

to climate Environmental compliance management

Energy utilization change

Supply chain security; Supplier evaluation and auditing;

Suppliers and Equal treatment of small and medium-sized Supplier training; Contribution to society and Innovation-driven

partners enterprises Daily communication rural revitalization

Employee training & development development

Due diligence Product and service safety and quality

Anti-commercial bribery Data security and privacy protection

Anti-unfair competition

and anti-corruption

Occupational health and safety

Industry Innovation-driven development; Industry associations and organizations; Protection of employees’ legal

associations Technology ethics Industry exchanges

rights and interests Supply chain security

Technology ethics

Waste disposal

Contribution to society; Environmental protection management;

Rural revitalization; Resource conservation measures; Ecosystem and biodiversity protection

Community and Response to climate change; Welfare activities;

the public Ecosystem and biodiversity protection; Charitable donation;

Energy utilization; Rural revitalization;

Water resource utilization; Volunteer service activities

Circular economy

In topic management the Company systematically references the requirements of

Material Topic mainstream domestic and international disclosure frameworks primarily based on the Guidelines No. 14 of the Shanghai Stock Exchange for Self-Regulation of Listed Financial Materiality

Management Companies—Sustainability Report (Trial). Through careful assessment and adjustment a total of 89 questionnaires were collected this year leading to the identification of 7 topics of Remarks: Given that Ancai Hi-tech’s primary business is the production and sale of photovoltaic glass and natural gas transportation via the West-East Gas Transmission Project’s Northern Henan Branch pipeline that its business operations are not directly linked to cutting-edge technologies like artificial intelligence or life sciences nor does the Company operate

financial materiality and 18 topics of impact materiality. These key topics were specifically in ecologically sensitive or fragile regions such as critical ecological function areas ecological redlines or nature reserves and that its products do not impact ecosystems species

addressed in the report. habitats or biodiversity throughout their lifecycle the Company does not address topics related to technology ethics ecosystem protection or biodiversity conservation.

1819

Impact materiality2025 Environmental Social and Governance (ESG) Report

General The General Meeting of Shareholders is composed of all shareholders and is the Company’s highest decision-making body exercising the decision-making authority over

Meeting of significant matters in accordance with the law. The General Meeting of Shareholders follows the Rules of Procedure for the General Meeting of Shareholders and is responsible

02 for electing and replacing directors reviewing reports of the Board of Directors discussing Shareholders profit distribution and loss recovery plans determining capital increases or reductions reviewing major transactions and external guarantees deciding on the Company’s

mergers divisions and dissolution and making resolutions regarding amendments to the

Standardized Governance Company’s Articles of Association. The Company’s General Meeting of Shareholders is divided into annual meetings and extraordinary meetings with the annual meeting being

held once a year. To ensure shareholders can exercise their rights according to the law

the General Meeting of Shareholders can be held using a combination of on-site meetings

and online voting ensuring shareholders can lawfully exercise their rights to information

participation and voting.The Company strictly adheres to relevant laws and regulations such as the Company Law the Securities Law and

the Code of Corporate Governance for Listed Companies improving its corporate governance structure establishing [Key Performance]

and strengthening internal management and control systems and enforcing them rigorously. The General Meeting

of Shareholders the Board of Directors and the management team perform their respective duties and work in During the Reporting Period the Company convened a total of 3 General Meetings of Shareholders

coordination continuously standardizing the Company’s operations effectively safeguarding the legal rights and during which 18 proposals were deliberated and adopted.interests of all shareholders and enhancing corporate governance standards.The Company has established a comprehensive governance structure where the responsibilities of the General The Board of Directors is the Company’s decision-making body for operations and is

Meeting of Shareholders the Board of Directors and the management team are clear and well-defined. Through accountable to the General Meeting of Shareholders. The Board of Directors exercises

its authority based on the Articles of Association the Rules of Procedure for the Board of

effective collaboration a governance system is formed that sets direction makes decisions strengthens supervision Directors and other relevant systems. It is responsible for implementing the resolutions

and ensures implementation continuously driving the Company's standardized and efficient operation. Board of of the General Meeting of Shareholders and in accordance with the law for reviewing

and making decisions on significant matters related to the Company. During the reporting

Directors period the Company's directors strictly adhered to relevant laws regulations and the

Company's Articles of Association in the performance of their duties. They fulfilled their

fiduciary and diligence obligations actively participating in the decision-making and

Organizational Chart of the Company supervision processes of the Board of Directors ensuring that the Company’s business

activities are lawful and compliant and safeguarding the overall interests of the Company

and the legal rights and interests of all shareholders.Ancai Hi-tech

[Key Performance]

During the Reporting Period the Company held a total of 13 meetings of the

Board of Directors deliberating and adopting 38 proposals.The Board of Directors has five specialized committees: the Strategy and Sustainability

Board Committee the Audit Committee the Remuneration and Appraisal Committee the Nomination Committee and the Risk Management Committee. The specialized

Ancai Photovoltaic

Centralized

management of committees are accountable to the Board of Directors and perform their duties in

Energy Business procurement Unit production and sales Committees accordance with the Implementation Rules for the Audit Committee of the Board

in subsidiaries

of Directors the Implementation Rules for the Nomination Committee of the Board

of Directors and other working guidelines. They provide professional opinions and

support for the Company's major decisions ensuring the scientific and impartial nature

of the decision-making process.

2021

"Dual Promotion" Office High Purity Minerals

Ancai

Semiconductor

Comprehensive Xuchang Antimony

Service Center Materials

Anyang

Silicon-Based

R&D Center

Xuchang Ancai Henan Silicon-Based

Jiaozuo

Jiaozuo Ancai Silicon-Based

Discipline Inspection

and Audit Department

Ancai Photovoltaic

Engineering Management Dingran Gas

Department

Ancai New Energy

Operation Management

Department Puyang Xinhe

Strategic Investment Solar Thermal Technology

Department

Equipment Manufacturing

Factory (Smart Manufacturing)

Planning and Finance

Department

Glass Research Institute

Human Resources

Department Ancai Pharmaceutical

Packaging Materials

Party and Government Gas Business Unit

Work Department2025 Environmental Social and Governance (ESG) Report

Diversity of The Board of Directors has established a Nomination Committee which is responsible for researching the selection criteria and procedures for directors and senior executives

the Board of and for selecting and reviewing the qualifications of candidates. During the selection process the committee comprehensively considers candidates’ professional ethics

Directors background industry experience and capacity to perform their duties. It promotes a 03diverse professional structure among the board members supporting scientific decision-

making and standardized governance. The Company places significant importance on

the diversity of its board members in terms of age cultural and educational background

professional experience and skills. Risk Management and

The Board of Directors consists of eight members including three independent directors Internal Control

accounting for 37.5%. Each independent director possesses extensive expertise and

work experience in fields such as finance and law ensuring robust decision-making

support for the Company. Ancai Hi-tech places high importance on risk prevention and

internal control management. It has established a comprehensive

Composition of a Diverse Board multi-level full-process risk control system that covers potential

risks in all aspects of business management thereby building a

By Gender By Age

solid safety line for the Company’s operations.Male 7 persons 40-50 years old 3 persons

To establish a standardized and effective risk control system and enhance its risk prevention

Female 1 person 50-60 years old 5 persons capabilities the Company has formulated the Risk Management Measures and built a "three lines

of defense" risk management organizational structure centered around the Board of Directors

Risk Risk Management Committee and various functional departments. This structure ensures that

By Type By Academic Qualification risk management covers all business processes including production procurement sales and Management investment forming a closed-loop management system. The Company follows a full-process risk

Independent

directors 3 persons Doctoral degree 3 persons

management mechanism of "Identification - Evaluation - Early Warning - Handling - Improvement"

using a combination of qualitative and quantitative methods to classify risk levels. A multi-dimensional

risk early warning system is established covering financial operational and other risks to accurately

Non-Independent 5 persons Master's degree 3 persons

directors prevent and control potential risks. At the same time the Company has developed an efficient and

responsive risk emergency handling mechanism clarifying risk responsibility accountability and

Bachelor’s 2 persons

degree continuous improvement requirements. Through regular self-inspections and supervision evaluations

the risk management system is continuously optimized establishing a solid safety barrier for the

Company’s stable operations.The Company continuously deepens its risk prevention and compliance education and training system.Board The Company highly values the independence of its Board of Directors. Based on the Through professional teaching online and offline integration and other diverse formats the Company System of Work of Independent Directors the Company standardizes the qualifications effectively raises employees’ awareness of risk prevention.Independence nomination procedures and performance requirements of independent directors to ensure they can independently and objectively fulfill their duties. Independent directors

play a significant role in the Board of Directors by participating in decision-making [Case] Special Training on Legal Awareness

supervising providing checks and balances and offering professional consultations.They independently review and supervise matters involving potential conflicts of interest

and other critical issues effectively safeguarding the Company’s overall interests and On December 12 2025 the Company organized a special training on legal awareness inviting external professional lawyers

to provide systematic lessons on preventing legal risks in both personal matters and corporate operations. The training was

the legal rights and interests of minority shareholders. conducted in a "on-site teaching + DingTalk live broadcast" format covering all employees in the Company. The aim was to raise

the legal risk awareness of all employees strengthen the corporate compliance management system and lay a solid foundation

for the Company’s stable operations and sustainable development through the rule of law.Effectiveness The Company adheres to the Articles of Association the Rules of Procedure for the Board of Directors and other institutional frameworks to regulate the operation of the

Evaluation Board of Directors specifying the procedures for convening and holding meetings reviewing topics and voting requirements. Meetings of the Board of Directors must

for Board of be attended by more than half of the directors to be valid and resolutions on agenda items require the approval of more than half of all directors. Directors independently

Directors and prudently express their opinions after thoroughly reviewing the meeting materials and participate in voting in accordance with the law. The Company uses formal

minutes of meetings and a resolution execution supervision mechanism to improve the

standardization and effectiveness of the Board of Directors’ decision-making.Training site

22 232025 Environmental Social and Governance (ESG) Report

Internal Control The Company with the Management Measures for Internal Control Evaluation as The Company has established a clearly defined hierarchy for information transmission review and disclosure processes specifying the the core follows principles such as comprehensiveness and significance to conduct roles and responsibilities of the Board of Directors Audit Committee Board Secretary and various departments. It also has stringent

internal control evaluations for itself and its subsidiaries. The evaluations cover the five provisions on confidentiality of undisclosed information and control of insider information thereby strengthening the information

key internal control elements including internal environment and risk assessment. A disclosure management defense line. In addition the Company has built a dual security mechanism consisting of audit supervision and

standardized internal control deficiency identification and classification management accountability. Through the Audit Committee and internal audit institutions the Company conducts regular supervision and holds those

system has been established categorizing deficiencies into major significant and responsible for any violations of information disclosure accountable ensuring the effective implementation of the information disclosure

general types. The Board of Directors ultimately identifies major deficiencies and the management system.management team organizes the rectification of deficiencies and related accountability The Company has established a comprehensive public opinion management system according

ensuring the continuous and effective operation of the internal control system. Public Opinion to the Public Opinion Management Measures with the Board of Directors taking the lead in public opinion management. An emergency public opinion management team is set up as needed with

Management clear responsibilities for the securities business department to collect public opinion and obligations Related-Party The Company has developed the Related-Party Transaction Management System for coordination from other functional departments. The system also standardizes the classification which defines the scope of various related-party transactions such as asset purchases and reporting processes of public opinion information. The Company has formulated principles for

Transactions and provision of services. It stipulates that related-party transactions should follow the rapid response to public opinion and sincere communication implementing differentiated measures principles of voluntariness fairness impartiality transparency and equity. Additionally for handling general and major public opinion events. At the same time a strict confidentiality

a full-process management mechanism for related-party transactions has been and accountability mechanism has been established to effectively prevent public opinion risks

established including hierarchical review of related-party transactions related-party protect the Company's commercial reputation and safeguard the legitimate rights and interests of

voting recusal and timely information disclosure. The Audit Committee is responsible for investors.overseeing related-party transactions with special provisions for premium purchases

of related-party assets and responsibility accountability clauses. These measures Investor To deepen investors' understanding and recognition of the Company and to foster a long-term effectively standardize related-party transactions and protect the legitimate rights and stable and healthy relationship with investors the Company has developed and implemented

interests of the Company and its shareholders. Relations the Investor Relations Management Measures. These measures adhere to the four principles of compliance equality proactivity and integrity. The Board Secretary is the main person in charge

The Company strictly complies with national tax laws regulations and policy and the securities affairs management department handles daily operations communicating with Tax requirements fulfilling its tax obligations by reporting and paying all taxes and fees in Management investors on core information related to the Company’s development strategy and management.full and on time thereby safeguarding the tax collection and management order. At the The Company builds a bridge for investor interaction and communication through various channels Compliance same time the Company has established a comprehensive tax compliance management effectively protecting the legitimate rights and interests of investors especially small and medium

system strengthening the identification and control of tax risks and standardizing investors. At the same time a strict confidentiality system and well-maintained management

the entire process of tax accounting and reporting. This ensures the compliance and records are established to regulate all types of investor relations activities.standardization of the Company’s tax-related work. In 2025 the Company paid a total of

RMB 72.23 million in taxes.Channel Types Specific Forms

· SSE E-Interactive

· Investor Contact Telephone

Online · Performance Briefings

04 Communication · Investor FaxChannels · “Investor Relations” Section on

the Company’s Official Website · Investor Emai

Investor Relations · New Media Platforms

Management

· General Meeting of Shareholders · Roadshows

Ancai Hi-tech always places the protection of investor rights at the core viewing Offline

information disclosure as an important bridge between the Company and its Communication · Performance Briefings · Analyst Meetings

investors. The Company continuously deepens its interaction and communication Methods

with investors and potential investors striving to create a fair transparent and · Cash Dividend Briefings · On-site Visits

standardized investment environment and to move towards a sustainable future · Major Events Briefings · Discussion Sessions

together with investors.To strengthen the management of information disclosure and protect the legal rights and interests

Information of investors the Company has developed the Information Disclosure Management System the [Key Performance]Management System for Temporary Suspension and Exemption of Information Disclosure and

Disclosure other systems. These systems clarify the core principles of disclosing truthful accurate complete During the reporting period the Company hosted investor activities/performance briefings and timely and fair information in accordance with relevant laws and regulations. The disclosure content 5

Management includes periodic reports interim reports and environmental social and governance reports answered investor questions times on the e-interactive platform.standardizing the information disclosure behavior of the Company and its subsidiaries. 79

24 252025 Environmental Social and Governance (ESG) Report

[Case] Pre-Spring Festival Integrity Education Meeting

05 In January 2025 the Company organized a pre-Spring Festival integrity education meeting for the

leadership team middle-level managers and key

Business Behaviors personnel. The meeting included a viewing of a warning education video and a study of the spirit of the Fourth

Plenary Session of the 20th Central Commission for

Discipline Inspection effectively enhancing the integrity

awareness of the Company’s leaders and employees

Ancai Hi-tech strictly adheres to the Anti-Corruption Law and other and laying a solid foundation for creating a clean and

relevant laws and regulations always upholding business ethics and market upright festive atmosphere.standards. The Company insists on compliant operations and honest Meeting Scene

performance integrating standardized commercial behavior into every aspect

of its business operations and development. A robust business behavior

management system has been established. The Company conducts various

business activities with responsible commercial behavior maintaining a fair

and orderly market environment and building a solid foundation for high- [Case] Warning Education Meeting for Promoting Rectification through Case Studies

quality development through compliant operations.In September 2025 the Company convened a warning

education meeting on promoting rectification through

case study analysis for relevant employees. During the

The Company has developed the Management Measures for Integrity Files of Leading meeting warning education videos were screened

Integrity Cadres and other systems to achieve full coverage of integrity management across typical cases of rule and regulation violations were

the headquarters subsidiaries and controlled enterprises. The Company led by the presented the root causes of the cases were analyzed

Management Discipline Inspection Commission promotes integrity management and establishes and post-representatives were organized to submit

their Commitment to Integrity on site. This initiative

System dynamic integrity file management for middle-level and subsidiary leadership teams. effectively tightened the “integrity screw” in the minds Additionally it has developed a multi-faceted supervision and inspection mechanism of all leaders and employees while also injecting a

including routine inspections and special audits and a hierarchical accountability system. strong impetus for integrity into the Company’s efforts

Clear accountability situations and methods are established with lifelong accountability to foster a clean and upright political ecosystem and

Meeting Scene

implemented to strengthen supervision and constraints on leaders' integrity. ensure high-quality development.[Key Performance]

Anti-Corruption The Company strengthens anti-corruption supervision through special inspections During the reporting period a total of 320 employees participated in anti-commercial bribery and anti- and requires leaders and key personnel to sign the Commitment to Integrity promoting

corruption training including 42 directors and senior executives (including subsidiaries). Supervision anti-corruption supervision to extend to the grassroots. This effectively clarifies the

The proportion of directors and senior executives who received such training was 100% for both categories. responsibility for integrity at each position and strengthens the integrity risk defense line.The total duration of the anti-commercial bribery and anti-corruption training provided was 320 hours

with the average duration of training per person being 1 hour. A total of 560 people signed the integrity [Case] Special Inspection on Integrity in Employment

agreements and other relevant commercial conduct documents. In September 2025 the Company’s D isc ip l ine

Inspection Commission conducted a special inspection

on integrity in employment at subsidiaries Ancai

Photovoltaic New Materials and Ancai Solar Thermal

Technology using the "Four No's and Two Straight's"

Anti-Corruption The Company regularly conducts anti-corruption and integrity education through various approach. The inspection focused on key positions and

forms including warning education meetings that promote reform through case studies areas with high integrity risk. It required subsidiaries to

Education pre-festival integrity education and other activities. These are combined with case conduct self-inspection and self-correction and improve internal control mechanisms. This inspection brought

analyses integrity talks and the viewing of warning education videos to continuously integrity requirements directly to the grassroots

strengthen the self-discipline and ideological awareness of all employees. effectively understanding the actual situation of integrity

risk prevention and control at subsidiaries and sent

a clear message of zero tolerance for violations and Meeting Scene

misconduct.

26 272025 Environmental Social and Governance (ESG) Report

Anti-Unfair The Company strictly complies with the Anti-Unfair Competition Law the Anti-Monopoly

Law and other relevant laws and regulations. It has improved its internal anti-unfair

Competition competition control mechanisms fully integrating anti-unfair competition requirements

into all aspects of its production and operations. The Company is committed to

preventing all forms of unfair competition and upholds the principles of integrity and

fairness in business cooperation jointly maintaining a regulated and orderly market

competition environment.Whistleblowing Pursuant to its Management Rules for Discipl ine Inspection and Supervision

Whistleblowing and Reporting the Company has established a comprehensive

and whistleblowing and reporting management system for discipline inspection and

Whistleblower supervision. It clearly defines the scope of acceptance and standardized handling

Protection procedures for such reports in accordance with relevant regulations and has set up

multiple reporting channels including letters in-person visits telephone hotlines online

reporting and self-media platforms thereby achieving full coverage of whistleblowing

and reporting work for the Company’s headquarters all subsidiaries and controlled

entities. The Company effectively strengthens the protection of whistleblowers’ rights

and interests. For real-name reports it provides acknowledgment of acceptance and

feedback on results. In cases of false or malicious accusations the Company carries out

clarification and restoration of the victim’s reputation in accordance with regulations. At

the same time the Company has established strict confidentiality management rules for

whistleblowing and reporting rigorously controlling the scope of access to confidential

information thereby providing comprehensive protection of the legitimate democratic

rights and interests of whistleblowers and other parties concerned.

28 292025 Environmental Social and Governance (ESG) Report

Environmental Response to Climate Change

Protection 2 Environmental Management Energy Utilization Water Resource UtilizationMaterial Utilization 30 312025 Environmental Social and Governance (ESG) Report

Risk/Opportunity

Category Description of Risk/

Financial Impact Magnitude Likelihood of Response

Opportunity Impact Duration of Impact Occurrence Measures

01 B y re l y i n g o n i t s c o re L o w - c a r b o n · Increasing investment Technological business of photovoltaic p r o d u c t i o n t e c h - in research and dev-

glass the Company is re- n o l o g i e s r e d u c e e l o p m e n t f o r g r e e n innovation

s e a rc h i n g l o w - c a r b o n energy consumption production technologies

Response to Climate Change production processes that

and carbon emission

Medium and · Collaborating on the costs whi le h igh-

align with the industry's value-added green short-term

High Medium application technology

trend toward green man- for recycled photovoltaic photovolta ic g lass

ufacturing. The iteration materialsproducts increase

of photovoltaic cel l and r e v e n u e s c a l e . · Upgrading the low-Ancai Hi-tech adheres to the core concept of green development module technologies pre- T e c h n o l o g i c a l carbon manufacturing

positioning the national "dual carbon" goals as a strategic opportunity to sents an opportunity for differentiation forms p r o c e s s e s f o r p h o -

a market competitive tovoltaic glass.drive its green transformation. The Company is actively advancing energy- upgrading the Company’s

photovoltaic glass products. a d v a n t a g e a n d

saving emission-reduction and circular clean production initiatives increases profitability.relying on technological innovation to achieve efficient resource utilization

and continuously reduce carbon emissions. Through concrete actions it Policy suppor The national dual-carbon · Actively applying for policies continue to support special subsidies for the

contributes to the realization of the carbon neutrality goal. t h e p h o t o v o l t a i c n e w green industry

energy industry. Green P o l i c y s u b s i d i e s

production of photovoltaic reduce the cost of · Striving to secure low-green transformation Medium and High Highmodules and low-carbon interest f inancing su-

transformation projects and green f inance

short-term pport from green finance.The Company's Board of Directors and management are highly focused on climate a re e l i g i b l e fo r s p e c i a l l o w e r s i n t e r e s t

governance and are committed to establishing a comprehensive climate governance policy subsidies. The green

e x p e n s e s o n f i n -

Governance financial system provides ancing.system and framework to proactively address the challenges posed by climate change. low-interest financing for

By integrating climate governance responsibilities into the existing management low-carbon projects.system the Company lays a solid foundation for achieving low-carbon operations and

climate-related management objectives. Note: We define the short-term medium-term and long-term impact periods as 1-3 years 3-5 years and over 5 years respectively; the high medium and low impact levels as severe

moderate and slight effects on corporate production and operations respectively; and the high medium and low likelihoods of occurrence as highly probable reasonably probable and

unlikely to occur respectively with the same logic applied throughout.The Company fully recognizes the potential risks and opportunities that climate change

Strategy may bring and incorporates these considerations into its overall risk management

framework. The Company monitors the long-term potential impact of climate change Impact Risk The Company has established a process for identifying assessing and managing

on its operations and is committed to continuously reviewing related topics in business

and Opportunity climate risks to ensure that related risks and opportunities are effectively evaluated planning while also monitoring relevant risks.and addressed. It continuously optimizes its climate risk management efforts based on

Management business progress and external environmental changes.Risk/Opportunity

Category Description of Risk/ Financial Impact Magnitude Likelihood of Response Risk Identification

Opportunity Impact Duration of Impact Occurrence Measures

Based on the TCFD framework the Company identifies climate-related risks and opportunities from three dimensions:

Phys ica l Extreme weather events

risks triggered by climate change · I m p rov i n g t h e d i s - physical risks transition risks and opportunities taking into account relevant laws and regulations market trends and

such as heavy rainfall and Production interruptions lead to temporary revenue aster prevent ion and high temperatures can resistance infrastructure the Company’s actual operating conditions.disrupt the operations of reductions asset damage at production bases

the Company's photovoltaic and additional costs for Medium

glass and other production disaster prevention and Medium to · Optimizing the geo-

bases block supply chain r e s t o r a t i o n p r o j e c t s .and long- Medium

term High graphical layout of the

logistics and directly impact Supply chain disruptions supply chain

outdoor photovoltaic and also raise raw material · Developing an em-

Risk Assessment

s o l a r t h e r m a l p ro j e c t s procurement and product ergency response plan

affected by climate disa- transportation costs. for extreme weather Starting from the identified climate risks and opportunities the Company focuses on the core driving factors and

sters. events evaluates their potential significant financial impacts clarifying the timeframes and the level of impact.M a r k e t T h e g re e n p ro d u c t i o n

standards for the pho- The costs associated risks

tovoltaic industry are con- with green production

t i n u a l l y u p g ra d e d a n d t ransformat ion ra ise Medium

downstream customers operational expenses and long- Medium to Risk Response

are increasingly demanding and non-compl iance Medium · A d v a n c i n g g r e e n

low-carbon procurement w i t h s t a n d a rd s m a y

term High energy-saving tran-

result in a loss of market s fo r m a t i o n s i n p ro - Based on the identification and evaluation results the Company develops and implements corresponding response leading to h igher com-

pliance costs and product share. duction processes measures coordinating its resources and capabilities to control climate change-related risks and seize potential

transformation costs. · Optimizing the pro-

duct system aligning opportunities.with downstream low-

carbon demands

32 332025 Environmental Social and Governance (ESG) Report

Metrics and Targets During the reporting period the Company successfully passed ISO 14001 Environmental

Management System certification.Metrics Unit 2025

Total GHG Emissions tCO2e 615475.76

Direct GHG Emissions (Scope 1) tCO2e 440769.91

Indirect GHG Emissions (Scope 2) tCO2e 174705.85

GHG Emission Intensity tCO2e per RMB 1 million 210.84

Remarks: The greenhouse gas emissions inventory covers Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and the Pharmaceutical

Glass Project Department. Scope 1 emissions mainly originate from natural gas and raw materials while Scope 2 emissions primarily come from purchased electricity.The Company actively implements the concept of green low-carbon development and is

Emission Reduction committed to reducing carbon emissions from its operations. Ancai Photovoltaic New Materials and Xuchang Ancai have established a digital energy and carbon management center to enable

energy monitoring carbon emission accounting and carbon asset management. The Company

Measures has also adopted a series of emission reduction measures including the construction of rooftop

photovoltaic power plants and the establishment of waste heat utilization facilities to continuously

advance greenhouse gas reduction efforts. Ancai Hi-tech ISO 14001 Environmental Ancai Solar Thermal Technology ISO 14001

Management System Certification Environmental Management System Certification

Digital Energy and Carbon Smart Management Platform Solar Photovoltaic Power Generation Facilities

02

Ancai Photovoltaic New Materials ISO 14001 Jiaozuo Ancai ISO 14001 Environmental

Environmental Management Environmental Management System Certification Management System Certification

Ancai Hi-tech places great emphasis on environmental compliance

management rigorously implementing national environmental protection During the reporting period the Company promoted the standardized management of environmental

policies and integrating environmental responsibilities into the entire

production and operational process. The Company has established a protection and continuously conducted multi-level environmental protection publicity and learning activities

standardized control system covering key areas such as wastewater and ensuring that all employees deeply understand and implement the concept of green development and

air emissions enhancing environmental risk management through system enhancing the Company's social responsibility in environmental protection.regulations technological controls and regular monitoring. It continuously

promotes green compliance operations.The Company implements a management mechanism for safety and environmental protection

based on the Management Regulations on Safety and Environmental Protection with

overall leadership from the Company specific responsibility from each department and full

Governance participation from all employees. The Work Safety and Environmental Protection Department

is responsible for safety and environmental management while the main persons in charge of

each department diligently fulfill their responsibilities for safety and environmental protection

work. Annual work safety and environmental protection commitments are signed.

34 352025 Environmental Social and Governance (ESG) Report

Strategy For the identified environmental management-related risks and opportunities the I m p a c t R i s k The Company manages various environmental risks through comprehensive

Company has developed corresponding response measures to reduce negative

impacts and seize potential development opportunities. and Opportunity

identification scientific evaluation and dynamic monitoring ensuring operational

compliance.Management

Risk

Category Description of Financial Impact Magnitude Likelihood of Response Risk IdentificationRisk/Opportunity Impact Duration of Impact Occurrence Measures

· P r o m o t i n g t h e Identifying the hazards and environmental factors present in production activities.Technology E x i s t i n g p o l l u t i o n Increased costs Medium- High Medium technological upgrade

risks control technologies of technological term to a n d i n t e l l i g e n t

m a y n o t m e e t t h e transformation long-term t r a n s f o r m a t i o n o f

increasingly stringent environmental protect-

emission standards ion facilities

leading to the risk of · Collaborating with Risk Assessment

exceeding the limits. research institutions Assessing risk levels based on the likelihood of occurrence and the severity of consequences.i n i n t r o d u c i n g o r

developing more effic-

ient cost-ef fect ive

treatment technologies

· Conducting regular

Compliance N a t i o n a l a n d l o c a l Increased fines Short-term High Medium internal audits for com- Risk Monitoring

risks e n v i r o n m e n t a l d a m a g e t o t h e to medium- pl iance and hazard The Work Safety and Environmental Protection Department is responsible for supervising the operation and control of

p r o t e c t i o n l a w s C o m p a n y ’ s term identification risks and significant environmental factors and for urging departments to carry out hazard identification and corrective

and regulat ions are reputation · S t r e n g t h e n i n g actions.becoming stricter with environmental com-

enhanced regulatory pliance training for all

enforcement. employees to ensure

that operat ing pro-

c e d u r e s m e e t t h e Risk Management

latest requirements Through technological improvements optimization of operating procedures emergency drills and employee training

the Company continuously reduces risk levels and regularly reviews the effectiveness of management measures.Opportunities

Category Description of Financial Impact Magnitude Likelihood of Response Risk/Opportunity Impact Duration of Impact Occurrence Measures

· Conducting targeted Metrics and The Company has established an Annual Environmental Protection Responsibility

Market Products that meet B r a n d v a l u e Medium- Medium Medium marketing to promote Agreement setting clear environmental goals regularly tracking and reviewing

opportunities higher environmental enhancement term to t h e e n v i r o n m e n t a l

standards are more long-term benefits of products Targets progress effectively managing environmental performance and ensuring continuous

l ikely to gain market · Actively exploring improvement.recognition. t h e m a r ke t fo r e n -

vironmentally friendly Environmental Goals Environmental Goals Environmental Goals

products

T h e g o v e r n m e n t Compliance with standards for

Policy p r o v i d e s f i n a n c i a l F i n a n c i a l Short-term Medium Medium · R e s e a rc h i n g a n d

support subsidies and tax inc- subsidies and tax to medium- actively applying for No environmental pollution incidents the discharge (or disposal) of

e n t i v e s fo r p ro j e c t s incent ives he lp term various environmental Stable compliance with caused by illegal discharge pollutants such as wastewater

related to environmental reduce costs. s u p p o r t f u n d s a n d pollutant discharge standards or improper handling of other exhaust gases fugitive emissions

t e c h n o l o g y t r a n s - preferential policies

f o r m a t i o n e n e r g y emergencies

noise industrial solid waste

conservation carbon hazardous solid waste etc.re d u c t i o n a n d c o m -

p re h e n s i ve re s o u rc e

utilization Achieved Achieved Achieved

Metrics Unit 2025

Total Environmental Investment RMB 10000 4785.45

Number of Environmental Training Sessions Times 29

Total Hours of Environmental Training Hours 8584.8

Penalty Incidents Caused by Serious Administrative Penalties

by the Ecological Environment Department and Other

Relevant Departments due to Environmental Incidents Cases 0

Remarks: The scope of total environmental investment includes Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and the Pharmaceutical

Glass Project Department. The scope of environmental training includes Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai Ancai Energy

and the Pharmaceutical Glass Project Department. The number of events resulting in significant administrative penalties from environmental authorities due to environmental incidents is

reported for Ancai Photovoltaic New Materials Xuchang Ancai and Jiaozuo Ancai.

36 372025 Environmental Social and Governance (ESG) Report

Hidden Hazards The Company has established a system for identifying and managing environmental hazards with the general manager as the primary responsible person fully overseeing [Case] Special Emergency Drill for Ammonia Water Leak at Xuchang Ancai

Identification and hazard identification work. The Work Safety and Environmental Protection Department conducts daily inspections and organizes special inspections during specific seasons On April 17 2025 Xuchang Ancai organized a special emergency drill for an ammonia water leak in the ammonia

Monitoring after incidents or when notified by higher authorities. The inspection covers eight major categories including worksite employee behavior fire safety equipment water storage tank area. The drill tested the employees' emergency response abilities the provision and usage of

and facilities hazardous chemical management special inspections and basic emergency supplies and enhanced employees' capabilities in handling environmental emergencies.environmental management.For identified hazards the Company implements a tiered management system.General On-site rectification or rectification as soon as possible.hazards

Major Developing a treatment plan and taking temporary control or

hazards emergency measures before remediation.[Case] Hazard Rectification by Jiaozuo Ancai

Drill Site

During the reporting period Jiaozuo Ancai diligently promoted hazard identification focusing on issues such as

The Company has established a management system that covers both organized and

cleaning broken glass energy-saving lighting and labeling standardization. The rectification rate reached 100%

fugitive emissions of exhaust gases adhering to strict internal control standards and

effectively enhancing environmental safety management.implementing ultra-low emissions requirements. To manage fugitive emissions we strictly

Broken glass in the semi-finished product warehouse Pre-treatment lighting was not turned off in time. enforce the Management Regulations on Fugitive Emissions within the Plant and the "Five

was not cleaned in a timely manner. W a s t e G a s

Appropriate Measures and One Enclosing" requirements. Refined dust control is carried

Before Rectification After Rectification Before Rectification After Rectification Management out throughout the entire process of material transportation storage and production as

well as on plant roads and construction sites. Environmental protection facilities such as

dust removal systems for ingredient mixing are synchronized with the main equipment in

operation and maintenance.Metrics Unit 2025

Nitrogen Oxides (NOX) Emissions Tons 295.63

Nitrogen Oxides (NOX) Emission Intensity Tons/RMB 1 million

The Company has developed emergency management systems such as the Emergency 0.10

Emergency Response Plan for Environmental Emergencies which standardizes emergency response Sulfur Oxides (SOX) Emissions Tons 46.08

procedures and handling processes for various environmental emergencies ensuring clear

P lans and responsibilities and organized responses. Meanwhile the Company conducts emergency Sulfur Oxides (SOX) Emission Intensity Tons/RMB 1 million 0.016

drills to test the feasibility and effectiveness of emergency plans and continuously

Drills VOC Emissions Tons 7.15optimizes emergency mechanisms based on drill outcomes thereby effectively enhancing

overall emergency response and risk control capabilities. Volatile Organic Compounds (VOC) Emission Intensity Tons/RMB 1 million 0.0024

[Case] Ancai Photovoltaic New Materials Emergency Drill for On-Site Disposal Plan Particulate Matter (PM) Emissions Tons 5.79

for Wastewater Pollution Sources from Water Treatment

On April 21 2025 Ancai Photovoltaic New Materials organized an emergency drill for the on-site disposal plan for Particulate Matter Emission Intensity Tons/RMB 1 million 0.0020

wastewater pollution sources from water treatment. The drill simulated a failure of the wastewater lift pump. On-site

operating personnel responded in an orderly manner and handled the situation appropriately effectively controlling Remarks: The statistical scope of nitrogen oxide (NOX) emissions nitrogen oxide (NOX) emission intensity sulfur oxide (SOX) emissions sulfur oxide (SOX) emission intensity particulate

matter (PM) emissions and particulate matter emission intensity includes Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and the

the incident and demonstrating the effectiveness of the plan. Pharmaceutical Glass Project Department while that of volatile organic compound (VOC) emissions and volatile organic compound (VOC) emission intensity includes Ancai Photovoltaic

New Materials Ancai Solar Thermal Technology Xuchang Ancai and Jiaozuo Ancai.Drill Site

38 392025 Environmental Social and Governance (ESG) Report

Wastewater The Company strictly controls wastewater discharge at the source by collecting production and domestic wastewater through a unified pipe network and prohibits the discharge of oil acid liquids toxic waste Metrics Unit 2025

Management liquids and other harmful substances into the drainage system implementing classified management of

wastewater. Additionally according to the On-site Emergency Response Plan for Wastewater Pollution Waste Generated Tons 141807.41

Sources the Company has developed emergency measures such as closing valves activating emergency

ponds and building containment dikes for scenarios like leakage and equipment failures. A comprehensive Quantity of Hazardous Waste Generated Tons 107.84

management system is in place covering everything from daily prevention to emergency response.Quantity of Non-Hazardous Waste Generated Tons 141699.57

Metrics Unit 2025

Waste Disposal Quantity Tons 42403.71

Wastewater Discharges Tons 700848.10

Quantity of Hazardous Waste Disposed of Tons 84.54

Wastewater Treatment Volume Tons 2433528

Quantity of Non-Hazardous Waste Disposed of Tons 42319.17

Wastewater Discharge Intensity Tons/RMB 1 million 240.08

Total Recycled Waste Tons 129506.73

Wastewater Reuse Volume Tons 2573832.45

Quantity of Harmful Waste Recycled and Reused Tons 71.87

Wastewater Reuse Rate % 71

Quantity of Non-Harmful Waste Recycled and Reused Tons 129434.86

Types of Wastewater Pollutants Discharged

Waste Production Intensity Tons/RMB 1 million 48.58

Chemical Oxygen Demand (COD) Tons 24.63

Generation Intensity of Hazardous Waste Tons/RMB 1 million 0.037

Five-Day Biochemical Oxygen Demand (BOD5) Tons 1.23

Generation Intensity of Non-Hazardous Waste Tons/RMB 1 million 48.54

Suspended Solids Tons 0.47

Waste Recycling Rate % 91.33

Ammonia Nitrogen (NH3-N) Tons 1.71

Recycling Rate of Harmful Waste % 66.65

Total Phosphorus (P) Tons 0.01

Recycling Rate of Non-Harmful Waste % 91.34

Animal and Plant Oils Tons 0.002

Remarks: The statistical scope of the waste generated generation intensity of hazardous waste and total recycled waste includes Ancai Photovoltaic New Materials Ancai Solar

PH / 7.41 Thermal Technology Xuchang Ancai Jiaozuo Ancai and the Pharmaceutical Glass Project Department in which the statistical scope of the total volume of harmful waste recycled

includes Ancai Photovoltaic New Materials Ancai Solar Thermal Technology and the Pharmaceutical Glass Project Department.Remarks: The statistical scope of wastewater discharge volume wastewater discharge intensity chemical oxygen demand (COD) and ammonia nitrogen (NH3-N) includes Ancai

Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and the Pharmaceutical Glass Project Department while that of wastewater treatment

volume includes Ancai Photovoltaic New Materials and the Pharmaceutical Glass Project Department. The statistical scope of wastewater recovery volume and wastewater recovery

rate includes Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai and the Pharmaceutical Glass Project Department and that of total phosphorus

(calculated as P) and animal and vegetable oils includes only Ancai Photovoltaic New Materials. The statistical scope of pH includes Ancai Photovoltaic New Materials Ancai Solar

Thermal Technology Jiaozuo Ancai and the Pharmaceutical Glass Project Department. Noise The Company strictly implements plant boundary noise emission standards and conducts

Pursuant to the Management Regulations on Solid Waste and following the principles of noise monitoring according to the monitoring plan to ensure compliance with noise

Waste lightweighting resource recovery harmlessness pollution accountability whole-process Management standards. Simultaneously the noise compliance is integrated into the environmental

management and classified management the Company categorizes solid waste into three assessment to effectively control noise pollution.Disposal types: household waste general industrial solid waste and hazardous waste and implements

segregated collection and management for each category.· Departments must classify the waste generated during production and daily operations into designated trash bins or send it to

specified locations.Household · Recyclable household waste and discarded spare parts must be uniformly delivered by the responsible department to the Work Safety and Environmental Protection Department which is responsible for external sales and disposal.waste · Household waste from the cafeteria must be collected at regular intervals and transported to the designated waste disposal

point outside the plant.· Construction waste must be supervised by the responsible department ensuring that the construction contractor directly

transports it from the construction site to the designated waste disposal point outside the plant.General

· All solid waste disposal measures must prevent scattering loss and leakage; dumping or stacking of solid waste without

industrial solid authorization is prohibited.waste

· A classified storage system with clear labeling must be set up at the point of generation. Waste must be transported using

Hazardous specialized tools to a temporary storage area that meets the Standard for Pollution Control on Hazardous Waste Storage where

waste the storage period shall not exceed one year. The transfer and disposal of hazardous waste must be entrusted to a qualified

entity and the hazardous waste transfer receipt system must be strictly implemented.

40 412025 Environmental Social and Governance (ESG) Report

Green Office The Company actively promotes green office practices and implements energy- Clean The Company integrates the concept of clean production into its long-term development strategy

saving and emission-reduction requirements. Green principles are embedded in daily implementing a clean production model that controls pollution at the source and prevents pollution

operations and management details. Production throughout the process. This ensures the optimal use of natural resources and energy maximizes economic benefits and minimizes harm to humans and the environment. In 2025 Ancai Photovoltaic New Materials

strictly followed the Clean Production Audit Measures and established a clean production audit working

Standardizing energy conservation of air conditioners group which focused on eight dimensions—raw and auxiliary materials and energy technology equipment

For summer cooling the temperature shall be set no lower than 26° C; for winter heating no higher than 20° C. Air conditioning may process control products waste management and employees—to identify the clean production potential

be turned on only when the indoor temperature exceeds 28° C or falls below 16° C. On working days air conditioning shall be turned in the manufacturing process.on 10 minutes before work starts and turned off 10 minutes before work ends. After a meeting concludes the meeting room’s air

conditioning and lights shall be turned off immediately. On non-working days the main power supply shall be switched off. Frequent Specific measures · For the raw material process the Company implemented an upgrade of the

switching on and off of the air conditioning shall be avoided. When leaving for a short period the temperature shall be adjusted homogenization silo and optimized the dolomite dust exhaust system.appropriately. Air vents shall be kept unobstructed and placing objects on the equipment is prohibited. made by Ancai · A distributed photovoltaic power station was established.Photovoltaic New · Through refined control measures such as optimizing the use of burner lances

Strict electricity and water management Materials adjusting the annealing fan operation strategy and adding an online sand moisture detection device natural gas and electricity consumption were significantly reduced.In individual work areas lights shall be turned off and equipment shall be powered off when leaving. In public areas electrical

equipment shall be turned off immediately after use. Automatic lighting facilities shall be adjusted according to seasonal changes · To control fugitive emissions a dust suppression device was installed at the glass

to eliminate “lights left on permanently”. Faucets shall be turned off promptly to prevent "running overflowing dripping or leaking." scrap storage bin to prevent dust diffusion from the source.· In waste management the addition of oil collection tanks for the rolling machine and

optimization of secondary roller marking treatment enabled waste oil recovery and a

reduction in the reject rate.Promoting paperless operations and material conservation · Other improvements included the recycling and reuse of packaging materials the

The DingTalk electronic office system is adopted to enable full-process online handling of document review approval and circulation. return of anti-mildew paper rolls to the manufacturer and the digital management of

Double-sided printing and single-pass printing are implemented; office supplies are strictly managed to avoid duplicate procurement three-tier water metering.and long-term idle inventory. The principle of “repair rather than purchase when possible and exchange old for new” is promoted.Optimizing meetings and travel methods

It is encouraged to “combine meetings keep meetings short and focus on key points”. For local meetings participants shall bring

their own cups to reduce single-use items. For off-site meetings video conferencing shall be prioritized. For business travel

priority shall be given to public transportation cycling or walking. For official vehicles carpooling is encouraged to reduce the

frequency of vehicle use. 03

Green Design Energy Utilization

The Company deeply integrates the concept of green design throughout

the entire lifecycle of product development and production. By utilizing

third-party Environmental Product Declarations (EPD) the Company Ancai Hi-tech adheres to the Energy Conservation Law and other related

conducts lifecycle assessments to scientifically quantify the environmental laws and regulations implementing standardized control over energy usage

impact throughout the entire process providing accurate data support for continuously optimizing the resource utilization structure exploring the

continuous optimization of green design. recycling value of resources and empowering the Company's green and low-

The product design of the Company’s Photovoltaic Business Unit closely carbon transformation and sustainable development.aligns with the green development needs of the photovoltaic industry. It has

developed 1.6 mm ultra-thin photovoltaic glass that meets the requirements

of high-end large-format modules such as the 210 format. Leveraging its

core performance advantages of high light transmittance and low iron

content this glass effectively enhances the energy conversion efficiency

of photovoltaic modules and supports energy saving and consumption Energy Management System

reduction in downstream photovoltaic systems. On the production side

guided by green design the Company has built upstream and downstream The Company has established the Energy Management

supporting industrial chains for quartz sand sodium pyroantimonate and Regulations and formed an energy conservation and

other materials enabling efficient internal recycling of resources within emission reduction leading group creating a three-tier

the industry and reducing resource consumption and environmental energy management network involving the Company

impact at the source. Additionally product green design strictly adheres to workshops and teams to implement standardized

international and domestic standards such as GB/T24025 and GB/T29551. management of energy usage throughout the entire

Environmental performance is verified by professional third-party agencies process. Ancai Photovoltaic New Xuchang Ancai

ensuring compliance with green building material and green building Materials ISO 50001

certification requirements. This guarantees the scientific and authoritative During the reporting period the Company obtained the ISO

ISO 50001 Energy

nature of the green design achievements. Xuchang Ancai Green and Low Carbon Certificate 50001 Energy Management System certification and green

Energy Management Management System

and low-carbon certification. System Certification Certification

42 432025 Environmental Social and Governance (ESG) Report

Energy Saving The Company always regards energy saving and carbon reduction as key drivers of [Case] Xuchang Ancai’s Technical Retrofit Project Replacing Electric Refrigeration Air

sustainable development. By combining technical expertise and digital empowerment Conditioning with Retrofitted Lithium Bromide Absorption Refrigeration

Measures it enhances energy efficiency. In 2025 Xuchang Ancai launched a technical retrofit project to replace electric refrigeration air conditioning with

Technology-driven Promote the construction of new energy projects and utilize the plant's resources to retrofitted lithium bromide absorption refrigeration. Through major overhaul and maintenance of the units upgrading

Energy Conservation develop photovoltaic power generation and energy storage facilities.of the control system and the addition of new cooling towers a water softening system and terminal ducts and

fans the project achieved centralized cooling for the tempering furnace control room substation and packaging

Establish a unified energy and carbon data collection and management system achieving workshop. After commissioning the cooling effect has been stable with temperatures in various areas maintained

equipment IoT integration and data standardization. By deeply integrating energy and

Digital Carbon

Management Center carbon data with production schedules and process parameters the Company identifies

between 21° C and 23° C. At the same time remote monitoring and energy-efficient operation have been realized

inefficient areas supports production optimization and manages equipment energy effectively reducing electricity consumption.efficiency effectively improving management efficiency and reducing energy costs.Energy Metrics and Targets

[Case] Photovoltaic Power Generation Project of Photovoltaic New Materials Metrics Unit 2025

Since 2020 Ancai Photovoltaic New Materials has launched a distributed photovoltaic power generation project Total Energy Consumption tce 169962.30

adopting building-integrated photovoltaics (BIPV) to organically combine building energy conservation with clean

energy production. Additionally the Company has actively expanded the residential photovoltaic market and has Energy Consumption Intensity tce/RMB 1 million 58.22

already established a 20 MW distributed residential photovoltaic system promoting clean energy in communities.In 2025 the 2.2 MW source-grid-load-storage integrated rooftop photovoltaic project was completed and put into Stationary Source Fuel Natural Gas 10000 m3 11625.84

operation further enhancing collaborative optimization capabilities. It is expected to generate 2.2 million kWh of Consumption

electricity annually contributing stable green revenue to the Company. Gasoline Tons 11.33

Mobile Source Fuel Gasoline Tons 10.18

Consumption Diesel Tons 94.60

Purchased Energy Total Purchased Electricity

Consumption kWh 211492341.18

PV Generation kWh 23838240

Renewable Energy Waste Heat and Pressure Power kWhGeneration 61206557

Consumption Renewable Energy Consumption tce 10452.01

Photovoltaic Equipment at the Ancai Photovoltaic New Materials plant site Proportion of Renewable Energy

Consumption % 6.15

Remarks: The statistical scope of natural gas in stationary source fuel consumption includes Xuchang Ancai Jiaozuo Ancai Pharmaceutical Glass Project Department and Ancai

Energy and that for gasoline includes Xuchang Ancai. The statistical scope of gasoline and diesel in mobile source fuel consumption includes Xuchang Ancai and the Pharmaceutical

Glass Project Department. The statistical scope of total purchased electricity includes Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and the Pharmaceutical Glass

Project Department and that for renewable energy consumption includes Ancai Solar Thermal Technology Xuchang Ancai and Jiaozuo Ancai. The total energy consumption is

[Case] "Source-Grid-Load-Storage Integration" Project of Xuchang Ancai calculated based on the data above with the statistical scope consistent with that of the aforementioned categories.Ancai Photovoltaic New Materials focuses on optimizing energy structure and improving energy efficiency. With the 2024

Xuchang Ancai has advanced the construction of a "source-grid-load-storage" integrated demonstration project energy performance parameters as the baseline the Company has set energy goals for 2025 promoting the transition

utilizing vacant areas within the plant to build photovoltaic power stations that meet the Company's demand for towards more refined and intelligent energy utilization.green electricity.Metrics 2024 Energy Baseline 2025 Energy Target Reduction Ratio

Comprehensive Energy 856.42 kgce per RMB 856.42 kgce per RMB

Consumption per Unit 10000 10000 0%Output Value

Comprehensive Energy 16.68 tce per 10000 16.51 tce per 10000

Consumption per Unit square meters square meters 1%

Product

Real-site photo of the "Source-Grid-Load-Storage Integration" Project

44 452025 Environmental Social and Governance (ESG) Report

Pure Water System Wastewater Soft Water System Circulating Water Treatment System System

04

Water Resource High-Purity Water Waste Heat Steam (EDI) System Utilization Equipment Cooling Tower Waste Heat Boiler

Utilization

The Company enhances water eff ic iency and reduces water

consumption per unit of product through strengthened process control

and deep wastewater treatment measures. Significant achievements [Case] Comprehensive Water Resource Utilization Retrofit Project of Ancai

have been made in the comprehensive utilization of water resources and Solar Thermal Technology

water-saving technological upgrades strongly promoting the Company's

Ancai Solar Thermal Technology's Power Workshop has focused on recovering and reusing the discharge

green low-carbon transformation and sustainable development. wastewater from the power generation float glass line and nitrogen-hydrogen station water tanks. By constructing

underground collection tanks and adding filtration and softening systems the discharged soft water and pure water

concentrate are treated and reused. After the project was implemented production costs were effectively reduced

Water Resource The Company established a water conservation leading group set up a three-tier water and wastewater discharge was minimized.management network and developed policies such as the Plant Water Management

Management System and the Water Metering Management System. Water consumption targets

System have been integrated into the core assessment criteria for each workshop reinforcing the implementation of water-saving management and assessment. A dedicated water

monitoring organization has been set up with water quantity and quality monitoring

equipment installed at key water usage points in major systems. This allows for real-

time transmission and monitoring of water data enabling precise control of the plant's

water usage dynamics. Through comprehensive detailed management and regular

monitoring the Company minimizes water loss ensures the rational and efficient use

of water resources and enhances the economic and social benefits of water utilization

while ensuring work safety.Water The Company continues to advance water-saving initiatives by optimizing processes

Conservation strengthening daily management and increasing water recycling rates to reduce water Water Resource Metrics and Targets

Measures resource consumption and contribute to sustainable development. Metrics Unit 2025

Total Fresh Water Withdrawal Tons 560728

· Adopting advanced pure water preparation processes to increase pure water

production rates; Municipal Water Purchased Tons 1210981

·Treating production wastewater through an edging wastewater treatment Underground Water Tons 296632

system with most of the treated water reused in edging and cleaning

processes; Total Water Consumption Tons 19595992

·Discharging domestic sewage into a septic tank before sending it to a Water Consumption Intensity Tons/RMB 1 million 6712.85

wastewater treatment plant for further treatment;

Fresh Water Consumption Tons

·Exploring comprehensive utilization of rainwater which is settled and then 1227823

used for dust suppression and green area irrigation within the plant site; Total Water Recycling and Re-Use Volume Tons 22776000

·Implementing water-saving technical retrofits such as automatic lower roller Remarks: The statistical scope of fresh water withdrawal includes Ancai Solar Thermal Technology and Xuchang Ancai and that of municipal water purchased includes Ancai

cleaning transformation and sodium tank recycled water recovery; Photovoltaic New Materials Ancai Solar Thermal Technology Jiaozuo Ancai Pharmaceutical Glass Project Department and Ancai Energy. The statistical scope of underground water

includes Ancai Energy Xuchang Ancai and Ancai Photovoltaic New Materials and that of total water consumption and water consumption intensity includes Ancai Photovoltaic New

·Conducting regular water balance tests to continuously optimize the water Materials Ancai Solar Thermal Technology Xuchang Ancai and Ancai Energy. The statistical scope of fresh water consumption includes Ancai Solar Thermal Technology Jiaozuo

use system. Ancai and Xuchang Ancai and that of total water recycling and re-use volume includes Ancai Solar Thermal Technology.Xuchang Ancai conducts a water balance test and water quality analysis for each water system across the plant every three to five years

establishing test records. Based on the test results water-saving targets are set and corresponding water-saving renovation plans are

developed.

46 472025 Environmental Social and Governance (ESG) Report

Material The Company integrates resource efficiency and green low-carbon development throughout the material management process. Through ongoing practical initiatives—such as continuously optimizing

Management packaging design promoting reduction and substitution and strengthening recycling and reuse—

Measures the Company effectively reduces material consumption and waste generation while safeguarding 05 production operations and product quality. This approach to meticulous management supports the Company’s sustainable development.Material Utilization [Case] Reduction of Packaging Materials

During the reporting period Ancai Photovoltaic New Materials pressed ahead with the reduction and lightweighting

of packaging materials. By improving the structure and material selection the thickness of the packaging wooden

Ancai Hi-tech adheres to the green development philosophy incorporating boards was reduced by 0.5 cm from the original 3 cm. While maintaining packaging strength and transport safety this initiative effectively lowered packaging material consumption resource use and waste generation.resource conservation and efficient utilization throughout its operations.The Company continues to optimize its material management system

focusing on reducing production material consumption. It actively explores

environmentally friendly efficient and lean material control pathways

steadily advancing the upgrading of packaging materials toward lighter

weight reduced volume and greener alternatives. Through concrete actions

the Company supports the low-carbon transformation of the industry and

strives to become a benchmark for green development.The Company has formulated policies including the Position Management Regulations for Packaging

Materials Position Management Regulations for Raw Materials and Workflow for Raw Material

Material Warehouse which systematically govern the entire process of raw materials and packaging materials Before Material Reduction After Material Reductionfrom receipt upon arrival inspection and testing warehouse storage dispatch and shipment to the

Management disposal of waste and used materials. These policies clearly define the responsibilities and operational

System standards for various positions such as storekeepers inspectors samplers and safety officers and strictly enforce requirements for hazardous substance control batch management FIFO (first- [Key Performance]

in first-out) consistency of accounts items and cards as well as regular inventory checks. Relying

on the EAS system the Company achieves daily data closing and monthly reconciliation ensuring

standardized efficient and safe warehouse operations. During the reporting period Ancai Solar Thermal Technology's raw material packaging bags were 100% recycled

Raw Materials Management Process Diagram of Ancai Solar Thermal Technology and reused by the supplier effectively reducing packaging waste and increasing resource recycling rates.The storekeeper receives The transportation

incoming raw materials vehicle is weighed. The The storekeeper

according to the plan; storekeeper arranges supervises the unloading

unscheduled arrivals are

Delivery by unloading in the order of process.not accepted. weighing. Metrics and Targetstruck Damage or

shortage

Metrics Unit 2025

No damage or

shortage

The sampler collects After the vehicle is The cause of the breakage is Total Raw Material Usage Tons 387896.48

samples on-site and notifies reweighed (tare weight) determined. The storekeeper

the delivery personnel to After the full batch of the storekeeper checks notifies the relevant

send samples. The delivery materials is received a the net weight against department to confirm the Toxic and Hazardous Raw Material Consumption Tons 2250.84

personnel promptly return goods receipt notice is the received quantity. If quantity removes the broken issued the same day. consistent the storekeeper items and accepts the Proportion of Toxic and Hazardous Raw Material the results to the Raw

Material Warehouse and the accepts the quantity as quantity based on the actual Consumption

Tons 0.58

Procurement Department. actually received. intact receipt.Non-renewable Raw Material Consumption Tons 387896.48

The material passes inspection

The material fails inspection Proportion of Non-renewable Raw Material Consumption % 100

At the end of each month

Not complete the warehouse inventory

warehousing is counted and any Total Quantity of Packaging Materials Used Tons 1585.99

procedures; the Based on the workshop’s discrepancies are analyzed. A

procurement personnel Complete warehousing material requisition or

procedures transfer order goods are report is written detailing the are promptly notified in reasons for the discrepancies Paper Packaging Materials

Tons 1454.7

writing to arrange for a dispatched. and filed with the department.return. The discrepancies are Plastic Packaging Materials Tons

handled at the end of the year. 131.29

Remarks: The statistical scope of data related to raw materials and packaging materials only covers Xuchang Ancai.

48 492025 Environmental Social and Governance (ESG) Report

Industry Value Responsible Supply Chain3 Innovation-Driven Development Product and Service Safety and Quality Data Security and Customer Privacy Protection 50 512025 Environmental Social and Governance (ESG) Report

Risk

Category Description of Financial Impact Magnitude Likelihood of Response Risk/Opportunity Impact Duration of Impact Occurrence Measures

01 · P r i o r i t i z i n g l o n g -Financial Suppl ier’s fai lure to T h i s d i r e c t l y Short-term Medium Medium term cooperation with risks perform contractual leads to bad debt suppl iers who have

obligations and refusal and impacts cash strong capabilities and

Responsible Supply Chain to refund after advance f l o w s e c u r i t y a good reputationpayment resulting in a n d t u r n o v e r capital tie-up and bad efficiency. · C l e a r l y d e f i n i n g

debt losses l i a b i l i t y fo r b re a c h o f c o n t ra c t i n a g r-

eements and strictly

i m p l e m e n t i n g t h e

Ancai Hi-tech is committed to building a value-synergized sustainable F u n d M a n a g e m e n t

supply chain and steadily fostering responsibility-oriented supply Measures

chain partnerships. The Company continues to optimize procurement M a r k e t S u p p l y c h a i n d i s - T h e s e r i s k s Medium High Medium · Building a diversified

m a n a g e m e n t m e c h a n i s m s a n d p ra c t i c a l p ro c e s s e s d e e p l y risks r u p t i o n s re s o u rc e could lead to fl- and long- supplier network and

s h o r t a g e s o r u c t u a t i o n s i n term advancing suppl ier collaborating with upstream and downstream partners gathering e n v i r o n m e n t a l r a w m a t e r i a l management

collective development efforts and jointly empowering the sustainable constraints that th- prices capacity · Conducting regular

reaten supply stability limitations and

development of the industry chain. r i s k a s s e s s m e n t s loss of market developing and drilling

share. emergency response

plans

Governance The Company has established a full-process supply chain procurement and quality control

mechanism under the frameworks of the Supplier Qualification and Evaluation Management Opportunity

Regulations the Procurement and Key Component Control Procedures and the Incoming

Category Description of Financial Impact Magnitude Likelihood of Response Inspection of Purchased Products. These documents standardize the preparation of Risk/Opportunity Impact Duration of Impact Occurrence Measures

procurement plans the screening of qualified suppliers the procurement of key components · Continuing promoting

and the management of outsourced processing. They also specify that the Procurement Cost reduction Achieving resource Reduce material Medium Medium High t h e re d u c t i o n a n d

Department is responsible for procurement execution supplier file creation and retention and efficiency e f f i c i e n c y b y o p t - c o n s u m p t i o n and long- l ightweight opt- im-opportunities imizing procurement a n d w a s t e term ization of packaging

of evaluation records. The incoming inspection responsibilities are assigned across multiple p r o - c e s s e s a n d disposal costs materials

units including the Quality and Technology Department the Storage and Transportation advancing packaging enhancing ove- · E s t a b l i s h i n g a

Workshop and the Batching Workshop which carry out sampling testing and verification reduction and material rall operational recycling mechanism recycling efficiency

for various types of purchased materials such as raw materials packaging materials for raw material pac-kaging reducing re-

equipment and labor protection supplies. In addition the Company has defined inspection source waste

standards time limits and conformity rules. Nonconforming purchased products are

promptly reported to suppliers for follow-up corrective actions. It also implements material · Collaborating with Sustainable A d v a n c i n g g r e e n These risks could Long-term Large Medium u p s t re a m a n d d o -

inspection exemptions and categorizes inspection management standardizes the archiving development supply chain and sus- h e l p e x p a n d wnstream partners

of inspection records and the timely entry of data thereby ensuring that purchased materials opportunities tainable development m a r k e t s h a r e in promoting green

meet quality requirements and enabling closed-loop controllable management of supply pract ices to deeply and effec-tively p r o c u r e m e n t a n d align with consumers’ reduce long-term recycling

chain procurement and incoming material quality. environmental dem- operating costs.a n d s a n d i n d u s t r y · Incorporating ESG performance into the

Strategy The Company conducts systematic risk identification and opportunity assessments c o m p l i a n c e p o l i c y requirements suppl ier evaluat ion across the entire supply chain process. Based on the results of these assessments precise system and nurturing responsible partners

response strategies are formulated to provide a solid foundation for the stable operation and

sustainable development of the supply chain.Risk

Category Description of Financial Impact Magnitude Likelihood of Response Risk/Opportunity Impact Duration of Impact Occurrence Measures

· Signing procurement

a g r e e m e n t s i n Impact Risk and Opportunity Management

Production D e l a y e d a r r i v a l o r This could lead Short- Large Medium accordance with the

risks substandard qual i ty to order defaults Contract Management

o f r a w m a t e r i a l s / i d l e c a p a c i t y term Regulations and clearly

spare parts disrupting and increased specifying technical The Company continuously strengthens supply chain risk management comprehensively enhances risk prevention and

p r o d u c t i o n o r d e r e m e r g e n c y standards and delivery control capabilities and effectively reduces supply chain risks to ensure the stability and security of the supply chain.reducing equipment p r o c u r e m e n t requirements

s t a r t u p r a t e s a n d costs. · Strengthening su-

affecting production ppl ier performance

capacity delivery tracking and incoming

g o o d s a c c e p t a n c e

procedures

52 532025 Environmental Social and Governance (ESG) Report

Supplier The Company follows the Supplier Qualification and Evaluation Management Regulations and Risk Identification the Procurement and Key Component Control Procedures to establish a process for supplier

Onboarding qualification. The quality of raw materials auxiliary materials and key component suppliers The Company conducts a systematic review and in-depth analysis of the entire supply chain process to accurately is strictly controlled to ensure compliance with the Company's quality environmental and

identify potential risk points at each stage ensuring full coverage with no omissions. occupational health and safety management requirements. This guarantees stable procurement

material quality and reliable supply from the source.Application

for Sample Submission Trial Production

Comprehensive Approval for

Risk Assessment and Inspection and Use Evaluation Storage

The Company conducts in-depth analysis of the root causes transmission pathways and influencing factors of supply Admission

chain risks. Integrating historical data industry assessments and market information it scientifically evaluates the When a new suppl ier After the application is A f t e r s a m p l e s p a s s A n e v a l u a t i o n t e a m T h e P r o c u r e m e n t D e -

needs to be introduced approved the supplier inspection the Quality and c o m p o s e d o f t h e P r o - partment drafts the Qualified

probability and severity of risk occurrences thereby establishing risk management priorities. due to existing supplier provides samples and the Technology Department c u re m e n t D e p a r t m e n t Supplier Approval Form and

supply issues market manufacturer's quality fo r m u l a t e s a t r i a l r u n / Qual i ty and Technology submits it together with the

changes or the Company’s inspection report. The t r i a l u s e p l a n w h i c h Department Storage and qualification application test

planning the Procurement Quality and Technology i s i m p l e m e n t e d u p o n Transportation Workshop reports trial run summary

Department prepares a Department is responsible confirmation at a production and the user department e v a l u a t i o n r e p o r t a n d

qualification application for inspecting raw material c o o r d i n a t i o n m e e t i n g c a r r i e s o u t o n - s i t e other documents to the

Risk Control and Prevention explaining the reasons and samples while the Storage organized by the General evaluations for production C o m p a n y ’s s u p e r v i s i n g

For identified and assessed risks control plans and preventive measures are developed. submits it for the approval a n d Tr a n s p o r t a t i o n Administration Department. suppl iers. For agents a leader for approval. Only of the Company’s leaders. W o r k s h o p h a n d l e s Upon complet ion of the comprehensive assessment a f t e r a p p r o v a l c a n t h e

1. Expand supplier cooperation channels and build a diversified supply system to reduce the disruption risks caused by p a c k a g i n g m a t e r i a l t r i a l r u n a s u m m a r y covering creditworthiness supplier be included in the samples. report is issued and jointly s u p p l y s o u rc e s s u p p l y List of Qualified Suppliers.

single-source dependency. c o u n t e r s i g n e d b y t h e capacity product quality

Procurement Department and service capabil ity is

2. Strengthen market dynamics monitoring and demand analysis to reasonably optimize procurement arrangements and the user department and c o n d u c t e d . S c o r i n g i s

production plans. the Quality and Technology performed according to Department. standards to determine a

3. Standardize management of supplier delivery anomalies improving rapid response and loss control capabilities. final grade.

[Case] Tender Procurement Practical Training

Risk Monitoring On April 17 2025 Ancai Photovoltaic New Materials conducted

Implement regular monitoring and periodic evaluations of supply chain operation status promptly identify new risks a training session on tender procurement practices. The training used the Tendering and Bidding Law Procurement

and hidden hazards and continuously optimize and improve risk management measures ensuring that the control Management Measures and other regulations as core teaching

mechanism remains efficiently adaptive. materials covering topics such as department responsibilities

procurement processes integrity building procurement

m a n a g e m e n t s y s t e m s p ro c u re m e n t p l a n s p ro j e c t

management and procurement process standardization. This

training effectively enhanced the professional capabilities and

compliance awareness of procurement personnel laying a

solid foundation for standardizing tender procurement and

Metrics and Targets mitigating procurement risks.Training site

Metrics Unit 2025

The Company has established a supplier assessment form conducting regular

Total Number of Suppliers Unit Supplier 82 evaluations and graded assessments for raw and auxiliary material suppliers.Evaluation and Raw material suppliers are evaluated monthly while auxiliary material suppliers Total Number of Suppliers Signing the Integrity Agreements Unit 81 are evaluated quarterly. The supplier assessment system establishes quantitative

indicators across four key dimensions—supply quality price and service—and

Supplier Integrity Agreement Signing Rate % 98.78 Assessment implements dynamic management through periodic performance appraisals

continuously driving suppliers to enhance their supply assurance capabilities and

Number of ESG Training Sessions Conducted For Suppliers Times 1 overall service levels.Total Hours of ESG Training Sessions Conducted For Suppliers Hours 3

≥ 90 points Grade A Prioritized for orders and a larger supply share; designated as a key development supplier.Number of Suppliers Covered By ESG Training Unit 47

Remarks: The statistical scope of the total number of suppliers total number of suppliers signing the integrity agreements and supplier integrity agreement signing rate covers Ancai 75 to 89 points Grade B Maintain normal procurement volumes and urge continuous improvement.Photovoltaic New Materials Xuchang Ancai Jiaozuo Ancai and Ancai Energy and that of supplier ESG training data covers Ancai Photovoltaic New Materials Xuchang Ancai and

Jiaozuo Ancai.

60-74 points Grade C Reduce procurement volumes; if a Grade C rating persists for two consecutive quarters supply is suspended pending rectification and re-evaluation.

<60 points Grade D Suspend supply and require rectification; eliminated outright if rated as Grade D for the year.

54 552025 Environmental Social and Governance (ESG) Report

Supplier Exit The Company has established a standardized supplier exit mechanism with clear Supplier ESG The Company has established the Supplier Code of Conduct and the Supplier

and unified exit conditions and graded disposal procedures continuously improving Environmental and Occupational Health Management Notification for all suppliers

and Elimination the quality and effectiveness of supply chain management. For suppliers that fail to Management providing products and services to the Company. These documents specify ESG management requirements related to environmental occupational health and safety

meet the evaluation criteria have significant issues with supply quality and service or compliance integrity human rights and labor and conflict minerals urging suppliers to

fulfill their sustainable development responsibilities.experience major safety or environmental incidents the Company implements graded

disposal according to the risk level: For minor issues suppliers are urged to rectify by

reducing the procurement share or suspending cooperation; for serious issues the Dimension Core requirements

qualified supplier status is directly revoked and cooperation is terminated thereby

creating a fully closed-loop controllable supplier management system. Environmental Comply with environmental regulations and RoHS management system requirements;

Management ensure products are accompanied by a Material Safety Data Sheet composition and performance specifications and quality inspection reports; regularly conduct hazardous

Supplier The Company continues to conduct supplier training and awareness campaigns substance testing and submit third-party reports; and guarantee that packaging encouraging supply chain partners to enhance their environmental social protection for chemicals and dangerous goods meets standards with no leaks during

Training responsibility and governance awareness and jointly build a sustainable supply chain

transport no honking within the plant area and strict control of vehicle speed and

stacking height to avoid environmental pollution and harm to human health

ecosystem.Occupational Health Establish safety and health prevention and control procedures to prevent accidents and

[Case] Business Partner Training and Safety occupational diseases and implement operational safety protections to safeguard the

occupational health and personal safety of both internal and external employees

In May 2025 Ancai Photovoltaic New Materials

conducted an online training for business partners

centered on the customs AEO certification security Compliance and Prohibit collusion bid-rigging corruption and bribery; strictly prohibit the offering of

standards. The training covered topics such as Integrity benefits to the Company’s personnel; and implement a single-window management

supply chain compliance trade security access system for procurement

control and collaborative contract fulfillment clearly

defining suppliers’ responsibilities and implementation

requirements under the AEO system to ensure that

the entire supply chain passes customs audits and Human Rights and Strictly prohibit child labor forced labor and human trafficking; safeguard employees’

continuously maintains its certification status. Labor rights to equal employment lawful compensation and freedom of association; and prohibit discrimination harassment and abusive behavior

Training site

Conflict Mineral Manage conflict minerals such as tantalum tin tungsten gold and cobalt; require

Management suppliers to commit that their products do not contain mineral components that finance armed groups in conflict-affected regions; conduct full supply chain country-of-origin

traceability; and submit a mineral data report within three weeks as required immediately

reporting any identified risks in writing and conducting verification

Equal Treatment The Company always adheres to the principles of fairness justice openness and

of Small and inclusiveness in its cooperation. It treats all small and medium-sized enterprises equally in the entire process of business cooperation procurement bidding and resource

Medium-Sized integration. The Company continuously optimizes the cooperation access mechanism

Enterprises to ensure that small and medium-sized cooperation entities have equal opportunities

and a fair competitive environment focusing on building a mutually beneficial

collaborative and sustainable business ecosystem.

56 572025 Environmental Social and Governance (ESG) Report

Strategy The Company systematically reviews and deeply analyzes the entire R&D innovation process fully

identifying potential risks at each stage of R&D while precisely capturing potential opportunities

in technology iteration and market application. Based on a comprehensive evaluation of risks and

02 opportunities the Company formulates targeted strategies to ensure the orderly advancement and effective implementation of R&D innovation work.

Innovation-Driven Development

Risk

Category Description of Financial Impact Magnitude Likelihood of Response Risk/Opportunity Impact Duration of Impact Occurrence Measures

Ancai Hi-tech focuses on technological innovation as the core driving · Staying aligned with

Market T h e i n d u s t r y i s c h a - industry technological

force increasing research and development (R&D) investment in core r a c t e r i z e d b y r a p i d technological iterations T h e p r o d u c t ' s Medium Large Medium

trends and collaborating

with upstream and

fields such as photovoltaic new materials. The Company builds a multi- competition a n d t h e C o m p a n y ' s pricing power has and long-declined resulting term d o w n s t r e a m e n -

level innovation system consolidates its core advantages through risks R&D projects ha-ve not terprises and research achieved technological in a slowdown in i n s t i t u t i o n s f o r

technological breakthroughs and results transformation and empowers b r e a k t h r o u g h s a s both revenue and profit growth coordinated R&D

the Company’s high-quality development and industry upgrading. planned with product p e r f o r m a n c e f a l l i n g · E s t a b l i s h i n g a

short of industry-leading dynamic tracking and

standards. adjustment mechanism for the entire R&D

project process

Governance

The Company has established regulations such as the Management System of R&D Project Funding and the Research and

Development Management Measures which define technological innovation activities such as independent commissioned The competition for top- · Improving the diversified Talent t i e r R & D t a l e n t i n t h e De lays in R&D

and joint research and development as well as technological transformation. These systems classify scientific research project projects result in Mid-term Large Medium

incentive and t iered

types and project approval levels and standardize the preparation review approval and adjustment processes for annual R&D turnover

i n d u s t r y i s i n t e n s e . I f training system for R&D

the Company is unable additional costs personnel

plans. Projects are managed under a project leader responsibility system specifying management requirements for project to retain core technical while the loss of risk technology we- · Establishing a core initiation implementation and progress reporting. Upon project completion acceptance inspections and achievements appraisal personnel it will hinder the akens long-term technology confidentiality

must be conducted in accordance with regulations. Additionally the Company has set up R&D assessment and achievement progress of R&D projects competitiveness. and control mechanism

commercialization incentive mechanisms which are centrally managed and interpreted by the R&D and technical departments lead to the leakage of

thereby promoting the standardized and scientific implementation of R&D work and enhancing the Company's technological core technologies and

· Expanding the exclusive

career advancement

innovation capabilities and core competitiveness. impact the stability of the Company 's innovat ion channels for R&D talent

The Company deepens its management of technological innovation projects classifying them into three categories based on system.project importance and innovativeness:

Opportunities

Category A Category B Category C

Category Description of Financial Impact Magnitude Likelihood of Response

Focus on original integrated and Conduct independent innovation Improvement-oriented innovation Risk/Opportunity Impact Duration of Impact Occurrence Measures

secondary innovation involving high based on introduction digestion projects with internal promotion The national and local

technical implementation difficulty and absorption with the overall value possessing a certain degree governments continue

and encompassing multi-dimensional technical level meeting domestic of innovation and technical difficulty to introduce supportive

innovation content with the overall advanced standards. wi th the overa l l technica l leve l

reaching company-leading status. Policy policies such as additional technica l leve l reaching part ia l Effect ive ly re- Medium High High · Precisely aligning with d e d u c t i o n s f o r R & D

international leadership. opportunities d u c i n g t h e and long- the policy requirements expenses tax incentives C o m p a n y ' s term for technological in-

for high-tech enterprises R&D costs and novation at all levels·

During the reporting period Ancai Photovoltaic New Materials Jiaozuo Ancai Xuchang Ancai Ancai Solar Thermal and technology-specific enhancing the Standardizing the full subsidies with a focus return on R&D process management of

Technology and Puyang Xinhe were awarded the Hi-tech Enterprise Certificate. Jiaozuo Ancai also obtained the Sci- o n e n c o u r a g i n g t e - investment R&D projects and cost

tech SME Certification while Xuchang Ancai Ancai Photovoltaic New Materials Jiaozuo Ancai and Ancai Solar Thermal chnological innovation in aggregation

Technology obtained the Henan Province Specialized and Sophisticated SME Certification. the fields of photovoltaic n e w m a t e r i a l s a n d · Actively applying for

h i g h - e n d e q u i p m e n t special science and

manufacturing. technology projects and policy support funds

Photovoltaic The global photovoltaic N e w p ro d u c t s Medium Large High · ncreasing R&D in-

Technology i n d u s t r y i s r a p i d l y bring higher pro- and long- vestment in core low-

Opportunities d e v e l o p i n g t o w a r d s duct premiums term carbon and efficient

higher efficiency lower a n d m a r k e t technologies

carbon and lightweight s h a re d r i v i n g · Acc e l erat ing t he

solutions. The Company r e v e n u e a n d mass production and

leverages i ts ex is t ing profit growth. market validation of new

R&D system to focus products

on core technological

breakthroughs enabling · Promoting the patent

Ancai Photovoltaic New Materials Hi-tech ra p i d c a p t u re o f n ew p o r t f o l i o f o r c o r e Xuchang Ancai Hi-tech Enterprise Certificate Enterprise Certificate market share. technologies

58 592025 Environmental Social and Governance (ESG) Report

Impact Risk The Company implements systematic full-cycle dynamic management of R&D risks. Through precise identification scientific analysis standardized assessment and effective Metrics Unit 2025

and Opportunity control it comprehensively prevents potential risks at all stages of R&D projects ensuring Cumulative Number of Authorized Utility Model Item

Management the steady achievement of R&D objectives and project outcomes. Patents 174

Cumulative Number of Software Copyrights Item 2

Risk Identification Number of Software Copyrights per Million Yuan

The Company comprehensively assesses internal and external factors such as technology market policy and in Revenue Items / RMB 1 million 0.00069

processes throughout the entire lifecycle of R&D projects identifying potential risks in project approval implementation

and result transformation. Total Number of Trademarks Item 38

Total Number of Published Papers Item 280

Specialized and Sophisticated Enterprise that

Produces Novel and Unique Products Unit 4

Risk Assessment

The Company conducts qualitative and quantitative analysis of identified risks determines the risk impact severity National High-Tech Enterprise Unit 5

probability of occurrence and priority level based on its actual circumstances and identifies key risk factors.National Enterprise Technology Center Unit 1

Innovation The Company has established the Performance Evaluation and Reward System for

Risk Response Incentive Technical R&D Personnel the Post-based Innovation Reward Measures and the Employee Recognition and Reward Management Measures creating a diversified incentive system

Based on risk assessment conclusions control measures and response plans tailored to R&D projects are formulated

to reduce the likelihood of risks and minimize potential losses. Mechanism covering the entire R&D cycle post-based innovation practices and company-wide

recognition and rewards. By means of quantitative assessments and tiered rewards

the system fully stimulates R&D innovation and post-based improvement encouraging

employees to actively create value and strive for excellence providing strong support for

the Company’s technological innovation and high-quality development.Risk Monitoring

Through regular project reviews and control at critical milestones the Company tracks the effectiveness of risk Incentive Applicable Core Incentives Evaluation and Management

mitigation measures and dynamically optimizes the response plans to ensure steady project progress. Types Objects

Xuchang Ancai adheres to a specialized and sophisticated development path and has set Technical R&D projects are classif ied by the level of

A n n u a l a s s e s s m e n t w i t h

Special R&D R&D innovation. Bonuses are disbursed proportionally

bonuses distributed in stages

medium- and long-term innovation goals centered on six major directions: efficient energy Incentives according to the R&D stage with results linked after R&D completion pilot

products smart manufacturing new materials and process innovation environmental Personnel to salary. trials and product launch.Metrics and protection and low-carbon development international expansion and open innovation.Targets Xuchang Ancai will increase its R&D investment in efficient photovoltaic products promote

They cover innovation improvements across

Post-based sales production costs management and

the digitalization of production and the upgrade of smart manufacturing continuously All employees of A n n u a l c e n t r a l i z e d Innovation the Company. efficiency. An anonymous scoring system is used selection; projects can be

optimize new materials and production processes and strengthen practices in resource Incentives across six major dimensions. submitted at any time.conservation carbon reduction and the circular economy. Meanwhile it will extend its

operations upstream with projects in silicon-based materials and sodium antimony oxide Employee Outstanding The selection of advanced producers advanced A n n u a l s e l e c t i o n w i t h

stabilizing raw material supply improving the industry chain ecosystem and collaborating Recognition and Individuals/ teams and advanced units follows the principles a d v a n c e d u n i t s / t e a m s /

with leading downstream companies and regional photovoltaic industries to consolidate its Teams/Units of openness fairness and impartiality. The individuals being evaluated Incentives selection ratio and criteria are strictly set. based on a fixed ratio.industry-leading position and achieve high-quality sustainable growth.Metrics Unit 2025 The Company adheres to an open collaborative and mutually beneficial industry-

Industry- university-research cooperation concept. It actively engages with governments industry

Investment in R&D RMB 10000 9250.47 Academia- associations research institutions and universities to establish an integrated system

Percentage of R&D Investment in Operating for industry-university-research collaboration. This system includes financial support

Income % 3.17 Research technological breakthroughs information sharing and talent development using

Collaboration collaborative innovation to drive technological iteration and sustainable development in Total R&D Team Members Person 346 the industry. During the reporting period the Company collaborated with universities such

Proportion of R&D Personnel in the Total as Zhengzhou University Anyang Normal University Henan University of Technology and

Number of Employees % 16.93 Henan University of Engineering.Cumulative Number of Authorized Patents Item

(Number of Valid Patents) 200 [Case] Henan University of Engineering

Number of Valid Patents per Million Revenue Items / RMB 1 million 0.069 Xuchang Ancai and Henan University of Engineering have reached a comprehensive strategic partnership. Focusing on fields such as

Number of Patent Applications Filed new energy and high-end manufacturing the two parties are carrying out in-depth collaboration in areas including joint talent cultivation Item 33 collaborative R&D and technological breakthroughs achievement commercialization employment and internships joint platform

Cumulative Number of Authorized Invention development and resource sharing thereby building a university-enterprise collaborative development platform that supports industrial

Patents Item 26 upgrading and the Company's high-quality development.

60 612025 Environmental Social and Governance (ESG) Report

[Case] Anyang Normal University [Case] Key Technological Breakthrough in Crystal Clear Glass

Ancai Photovoltaic New Materials and the School of Physics and Electrical Engineering at Anyang Normal University To address the core challenge of color consistency in high-

jointly established the Distributed Smart Energy Engineering Research Center focusing on technology R&D and end solar thermal and construction markets Ancai Solar

the industrialization and commercialization of achievements in the field of distributed smart energy. The university Thermal Technology's R&D team optimized the ultra-white

provides technical guidance talent training and project application support while the Company offers research float material source and innovated the melting furnace

topics testing facilities and equipment. Both parties share resources and collaborate on innovation to create an process parameters. This breakthrough successfully

advanced technological research base in China. overcame technological barriers in high-end applications

enabling large-scale stable production and establishing

initial sales volume. It completely resolved the bottleneck

limiting the entry of products into high-end markets. With

outstanding color accuracy and stability the product

R&D The Company relies on a robust technological innovation management system and professional R&D platforms to focus on key technological breakthroughs in core production has gained higher customer satisfaction and market

Platforms and processes. During the reporting period the Company successfully developed several competitiveness laying a solid foundation for expanding specialized production units filed multiple utility model patent applications and passed into high-end application fields.Achievements phased or mid-term acceptance inspections for relevant projects effectively improving production efficiency product yield rates and equipment operational safety thereby In addition the Company places great emphasis on industry technical standards and actively participates in various standard-

providing solid technical support for the Company's high-quality business development.setting activities. The Company and Ancai Solar Thermal Technology participated in the development of two industry standards

including one national standard: GB/T44753-2024 "Test method for liquidus temperature of ultra-thin glass" and one group

standard: T/CIEP0272—2025 "Technical specification for hydrogen production in wind and green storage coupled electrolytic

[Case] Project to Improve the Production Efficiency of 2.0mm Photovoltaic

cell."

Glass Sheets

Addressing the market demand for 2.0mm photovoltaic glass Ancai Photovoltaic New Materials successfully Protection of The Company has established the Knowledge Management Regulations and the

developed a device for preventing capping on lip bricks and an oil film cleaning device for calender roller heads Confidentiality Management System creating a coordinated management system

effectively avoiding calender roller damage and reducing oil film contamination. Currently two utility model patent Intellectual for knowledge management and intellectual property protection. The Knowledge

applications have been filed for these innovations and the project has passed phased and mid-term acceptance Management Regulations clarify the processes for collecting organizing archiving

inspections significantly improving production efficiency and product yield rates. Property Rights and sharing various types of knowledge such as technical process and management

knowledge and encourage intellectual property filings while regulating patent

management. The Confidentiality Management System includes core elements such as

[Case] Project to Improve the Production Efficiency of Wide-format technical information intellectual property and production processes in the confidentiality

Photovoltaic Glass Sheets scope defines security levels outlines confidentiality responsibilities and establishes

protective measures to strengthen the confidentiality control of core technologies and

Ancai Photovoltaic New Materials developed a device for the overflow outlet blocking materials in the glass furnace

intellectual property throughout the entire process effectively safeguarding the Company's

channel solving issues such as cracks and slag shedding. The device can quickly adjust the width of the glass

technological achievements and core commercial interests.sheets and has a thermal insulation effect. Currently a utility model patent application has been filed for this device

and the project has passed phased acceptance inspection effectively improving the production efficiency of wide- [Case] Patent Mining and Drafting Training

format glass sheets and equipment safety.On November 13 2025 the Company conducted a training

session on patent mining and drafting focusing on patent

[Case] Breakthrough in Key Technologies for High-transmittance High- drafting specifications techniques for identifying points

strength Solar Thermal Glass of innovation and the planning of intellectual property

projects and honor applications. In-depth explanationsIn March 2025 the “Research and Application of Key Technologies for High-transmittance and High-strength were delivered through practical case studies effectivelySolar Thermal Glass” declared by Ancai Solar Thermal Technology was successfully selected as a key R&D project enhancing the patent protection awareness and practical

in Henan Province. Focusing on the critical performance bottleneck in achieving both high transmittance and capabil ities of participating employees and laying a

high strength for solar thermal glass Ancai Solar Thermal Technology achieved comprehensive breakthroughs foundation for the standardized advancement of the

in production efficiency quality and cost through a series of measures including breakthroughs in combustion Company's intellectual property work.promoters and composite slag clearing. After the technological upgrade the material replacement cycle for solar Training site

thermal glass was significantly shortened with output increasing by 7.6%. The direct solar transmittance of 3mm

solar thermal glass exceeded 91% achieving a dual leap in production efficiency and product performance setting

a new industry-leading standard in comprehensive quality.

62 632025 Environmental Social and Governance (ESG) Report

03

Product and Service

Safety and Quality

Ancai Hi-tech firmly believes that the quality of products begins with the caliber

of people. Only by taking people-oriented reform as the cornerstone and Ancai Solar Thermal Technology ISO 9001 Quality Xuchang Ancai ISO 9001 Quality

enhancing the competence of all employees can the Company fundamentally Management System Certification Management System Certification

guarantee product and service quality. By integrating human progress into the

management system the Company continues to develop safe and reliable

products and provides high-quality services returning the trust of customers

and society with tangible results. During the Reporting Period the Company did

not experience any major safety or quality-related liability incidents involving its

products or services. Strategy The Company continuously identifies risks and opportunities related to product and service

safety adjusting response strategies in a timely manner based on changes in regulations

Governance The Company upholds the principle of building its foundation on products and securing customer market dynamics and technological trends.trust through service. It designates the Operations Management Department as the integrated

management body overseeing market and production functions with full responsibility for Risk

customer and quality supervision. At the same time it promotes the establishment of quality Description of Impact Likelihood of

Category Risk/Opportunity Financial Impact

Magnitude Response

management organizations and quality teams in various business units and subsidiaries to fulfill Duration of Impact Occurrence Measures

quality management responsibilities at the operational level. To continuously unlock product quality · R e v i e w i n g a n d

Product damage dur- R e s u l t i n g i n Short-term Medium Medium a n a l y z i n g q u a l i t y

potential the Company has formulated the Production Benchmarking Management System Quality

Compensation ing loading unloading q u a l i t y c o m - compensation incidents

establishing a production benchmarking mechanism that consistently improves key quality and transportat ion pensation and t o - i d e n t i f y t h e ro o t Risk cause of the issue

indicators such as yield rates by measuring against industry-leading standards thereby driving leading to a decline in d a m a g e t o · Holding monthly quality

operational refinement and continuous improvement in production. product quality reputation meetings to formulate

improvement measures

Jiaozuo Ancai and Ancai Solar Thermal Technology have both developed the CCC Quality · Strengthening oversight

Manual which serves as the guiding document to ensure certified products consistently of loading unloading a n d t r a n s p o r t a t i o n

meet national standards and defines the leadership responsibilities of their respective general processes

managers within the quality management system.Product I m p u re o r c o n t a m - Increased costs Short-term Medium Low · Enhancing incoming

Disposal inated raw materials which may le-

inspection and process

monitoring

During the reporting period the Company Jiaozuo Ancai Ancai Photovoltaic New Materials Ancai Risk l e a d i n g t o p ro d u c t a d t o q u a l i t y

disposal compensation · Providing regular quality

Solar Thermal Technology and Xuchang Ancai have all obtained ISO 9001 Quality Management awareness and operational

ski l ls training for key

System certification. personnel

· Improving internal

reporting and reward-

punishment mechanisms

encouraging employees to

report hidden risks

Customer Improper handling of R e v e n u e d e - Short-term Medium Low · Improving the rapid

Complaint customer complaints c l i n e w h i c h

response mechanism for

customer complaints

Handling leading to customer m a y l e a d t o

loss or contract dis- compensation · Promptly addressing Risk customer complaints

putes negotiating solutions

Ancai Hi-tech ISO 9001 Jiaozuo Ancai ISO 9001 Ancai Photovoltaic New Materials preventing escalation a n d m i n i m i z i n g t h e

Quality Management Quality Management ISO 9001 Quality Management Company’s losses

System Certification System Certification System Certification

64 652025 Environmental Social and Governance (ESG) Report

Opportunities Metrics Unit 2025

Category Description of Financial Impact Magnitude Likelihood of Response Risk/Opportunity Impact Duration of Impact Occurrence Measures Number of Product Recalls 10000 square meters 2.4

Quality I n t ro d u c t i o n o f i n - Cost reduction Mid-term High Medium · Utilizing the industrial Quantity of Products Required to Be Recalled Due to Health or 10000 square meters 0

Stability te l l igent inspect ion a n d q u a l i t y internet to collect real- Safety Reasons

Opportunity and control systems premiumCost time quality data Product Recall Rate % 0.0075

to improve product reduction and · Promoting the es-tablishment of a quality

consistency and yield quality premium big data analysis pl- Number of Participants in Quality Training Person-times 154rates atform

Quality Training Total Hours of Quality Training Hours 1189

· Continuing to optimize

Product Opt imizat ion of fo- Achieving price Long-term Medium Medium product processes Number of Quality Training Sessions

Reliability r m u l a t i o n s a n d p r e m i u m s Times· Enhancing technical 15

Upgrade processes to enhance and increased c o m m u n i c a t i o n

Opportunity k e y p e r f o r m a n c e profits with customers and Number of Customer Complaints Times 18

i n d i c a t o r s s u c h a s o p t i m i z i n g p ro d u c t

product strength and performance for special

Number of Customer Complaints

Cases

application scenarios Resolved 18

weather resistance

Number of Customers Participating in Person 35

Customer Service the Survey

Impact Customer Satisfaction % 96.86

Risk and Number of Customer Complaint To effectively manage risks related to product and service safety and quality the Company TimesResponse Assessments 5

Opportunity integrates risk management requirements into daily management processes. Pass Rate of Customer Complaint %

Management Response Assessments

100

Remarks: The statistical scope of product quality data covers Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai and Jiaozuo Ancai and that of

customer service data covers Ancai Photovoltaic New Materials Ancai Solar Thermal Technology Xuchang Ancai Jiaozuo Ancai and Ancai Energy.Risk Identification

Through internal and external information collection and data analysis the Company conducts a thorough inspection

of potential quality risks across all stages including product design supply chain procurement production

manufacturing and services. Product Quality Control Automatic Testing Instruments of Ancai Solar

To ensure product quality the Company led by the Operations Thermal Technology

Management Department with each subsidiary as the operational entity

implements full-chain quality supervision. At the front end of the supply

Risk Assessment chain the Operations Management Department establishes a qualified

Risks are assessed based on frequency and impact and the priority for handling is clearly defined. supplier information database to ensure the quality of materials from the

source. Based on this each subsidiary closely monitors quality during the

production process and promotes advanced quality tools such as QC and Automated Stacking Equipment of Ancai Solar

SPC. Finally stringent controls are applied to output results with internal Thermal Technology

product quality supervision strengthened to form a complete closed

management loop from source to finished product.Risk Management

For each identified risk corresponding response strategies are developed covering prevention and control process The Company act ively responds to Henan Province's digita l

intervention and continuous improvement. transformation strategy driving the digital transformation of

manufacturing and product quality management to continuously

improve product quality.As a "Smart Factory" designated by Henan Province Xuchang Ancai—supported by an industrial internet platform and new-generation

The Company remains guided by objectives and continuously drives improvements information technology and anchored in the factory's automated production line business processes—has built a "one-stop data analytics Metrics and in product quality and service levels. Xuchang Ancai has established the Metrics and management dashboard" through the comprehensive integration of information systems and the digital upgrade of production equipment. This

Targets Management System to guide the formulation decomposition implementation enables data to flow seamlessly from top to bottom establishing a digital production management system.Targets

and assessment of metrics and targets ensuring the achievement of quality and service Digital Quality Management Initiatives

objectives. AI-powered Visual Inspection Real-time Monitoring and Early Warning of Quality Indicators Automation Equipment Assurance

Metrics Unit 2025 Through a collaborative manufacturing

Build an artificial intelligence edge management application monitor quality Focus on labor-intensive processes

Product Percent of Pass computing environment to realize AI indicators in the production process in and build various automated systems % 98.47 visual recognition at quality inspection real time with alerts and responses for to enhance the degree of automation

stations. abnormal condit ions. Leveraging data on production lines achieving full-

Number of Internal Quality Audits Annually Times 5 analytics and traceability functions achieve process and full-factor data collection

full product quality traceability enabling for the entire factory.Number of Third-Party Inspections Conducted Times timely identification and resolution of quality 3 issues.

66 672025 Environmental Social and Governance (ESG) Report

Product To extend high-quality products to a broader market the Company remains focused on The Company advances quality culture through diverse approaches such as the Quality product coverage and accessibility. Through enhanced transport supervision strict quality Quality Culture Month campaign series to solidify the foundation of product quality.Accessibility control improved delivery capabilities and cost optimization the Company ensures the safe and reliable delivery of products to more customers contributing to the widespread Development

application of products. [Case] Quality Month Series Activities at Xuchang Ancai

Product The Company places great emphasis on defective product management actively eliminating safety hazards through proactive recall mechanisms to safeguard the safety In September 2025 Xuchang Ancai launched a series of

Recall of customers' lives and property. Ancai Photovoltaic New Materials has established and “Quality Month ”activities with the theme of“ Strengthening implemented the Product Recall Management Measures creating a complete recall Comprehensive Quality Management Boosting China’sprocess for photovoltaic glass products both domestically and abroad ensuring the timelyProduct Recall Procedures Strength in Quality.” By setting up thematic exhibition recall of defective photovoltaic glass products. boards posting slogans and sharing case studies the

Company created a strong atmosphere emphasizing

Defect Information Collection and Reporting the importance of quality among all employees. Various

Information is collected through multiple channels including customer complaints after-sales service internal workshops organized quality awareness and inspection

inspections and market monitoring. skills training covering work instructions user case

studies and practical defect measurement.Quality Month Series Activities

Defect Investigation and Risk Assessment

The Quality and Technology Department leads the investigation and analysis of suspected defects and conducts risk Customer Service The Company always adheres to a customer-centric approach and values customer

assessments to determine the risk level. Differentiated response requirements are defined for each risk level. service management. Ancai Solar Thermal Technology has developed the User Service

Guarantee Management Regulations improving the collection of user quality information and the complaint handling process. The Marketing Department is responsible for daily

user quality services receiving and passing on user quality information. The Quality

Assurance Department classifies and processes this information handling complaints

Recall Decision establishing cases verification closure and assessments and dispatching service

A temporary recall management committee is formed to review and decide whether to implement a recall. Once a personnel. Production departments implement corrective and preventive actions based

decision is made the emergency procedure is immediately initiated. A recall task force is formed and the Product on feedback and when necessary visit the user's site to handle issues.Recall Plan is completed within 24 hours.[Case] Job-Specific Skills Training for Employees of Ancai Solar Thermal Technology

Product recycling In 2025 Ancai Solar Thermal Technology organized job-

The Sales Department Customer Service and Storage and Transportation Workshop receive the returned products specific skills training for employees in the Marketing

and fill out the Recall Product Receipt/Processing Record Form. Customers are provided with replacement repair or Department covering customer communication sales

refund services ensuring that the new products meet quality standards. techniques and after-sales services. This expanded

sales thinking and enhanced customer service skills.Product Disposal

The recalled products are isolated labeled and disposed of in compliance with regulations to prevent them from re- Skill Training

entering the market.Effect Evaluation

After the recall is completed the recall task force evaluates the effectiveness of the recall compiles a summary report

and implements corrective and preventive actions.

68 692025 Environmental Social and Governance (ESG) Report

Customer The voice of the customer is a critical guide for the Company to improve products and To strengthen security risk management the Company has established specialized services. The Company actively collects customer feedback to optimize management and Data emergency response mechanisms for incidents such as data breaches system attacks

Satisfaction enhance product and service quality. Ancai Solar Thermal Technology has established the Security Risk and network failures based on the Data Security Emergency Response Plan and the Customer Satisfaction Measurement Procedure creating a customer satisfaction evaluation Cybersecurity and Information Security Incident Emergency Response Plan. These

mechanism. Customer satisfaction regarding marketing services product quality and other mechanisms clearly define the organization and responsibilities for emergency response

aspects is collected and feedback is used to continually optimize the customer experience. Management and refine the cybersecurity and data security emergency response system.Data Security Incident Emergency Response

[Key Performance]

Data Security Incident Emergency Response Leading

Group Emergency Response Security Technical Group

In 2025 Ancai Solar Thermal Technology conducted a satisfaction survey on float glass products with8 typical Composed of technical personnel from the Information

customers distributing8customer satisfaction evaluation surveys with a 100%response rate. The overall The head of information security serves as the leader fully responsible for the overall coordination command Security Department this group is responsible for

satisfaction score was 93.19 points. and leadership of the emergency response. The group the daily management of business system disaster

supervises the effective execution of emergency recovery system backup and restoration as well as

management processes makes overall decisions on loss control and damage assessment during data

emergency handling and is responsible for reporting security incidents.data security incidents.Cybersecurity and Information Security Incident Emergency Response

Responsible Responsible marketing is the basic principle for the Company to practice honest business and earn market and social trust. The Company is committed to creating a fair transparent Cybersecurity and Information Security Leading

Marketing and healthy market environment while delivering product value. Xuchang Ancai has Group Network Inspection Group Leaderdeveloped the Publicity and Reporting Management Measures clarifying the principles This group serves as the organizational coordination Assumed by the head of the Information Management

of "objectivity rigor accuracy and practicality" in publicity. The General Administration body for the Company's cybersecurity and information D e p a r t m e n t t h i s ro l e i s re s p o n s i b l e fo r t h e

Department centrally manages all types of publicity activities establishing a pre-review security emergency response. It is headed by a senior management of the Cybersecurity and Information

mechanism and a reward-punishment system to prevent the spread of false information leader and includes leaders from various departments. Security Incident Emergency Response Plan and for

ensuring that all publicity is truthful and compliant. The group is responsible for the overall planning inspecting the plan's implementation.organization coordination and decision-making of

emergency response efforts.[Case] Utility Power Failure Emergency Drill

On April 26 2025 the Company organized a utility

power failure emergency drill simulating a sudden utility

04 power outage scenario. The drill focused on testing the UPS (Uninterruptible Power Supply) power supply assurance capability of the server room and further

Data Security and Customer enhancing emergency response efficiency.Privacy Protection

Utility Power Failure Emergency Drill

Ancai Hi-Tech safeguards data security and user privacy with stringent

standards. By continuously enhancing its data security and customer Meanwhile the Company actively promoted cybersecurity self-inspections. By conducting penetration tests vulnerability

privacy protection management system the Company steadily scanning and assessments it continuously optimized relevant policies and management measures.strengthens its digital security defenses and diligently fulfills its social

responsibility in data governance. During the reporting period the

Company did not experience any data security breaches or customer [Case] System Security Assessment [Case] Security Self-Inspection of

privacy leaks. Xuchang Ancai

In August 2025 the Company conducted vulnerability

Data Security To enhance network and information system security the Company has developed the scanning on 32 mainframe computers and devices. Dur ing the report ing per iod Xuchang Ancai Electronic Data Security Management Regulations and the Cybersecurity Management The scanning involved r isk c lassi f icat ion r isk conducted a self-inspection of its cybersecurity

Management Regulations clearly defining the Information Management Department as the department distribution and weak password listings identifying infrastructure. Based on the self-inspection results responsible for cybersecurity management and electronic data security management. 326 vulnerabil it ies 80 of which were high-risk. it plans to improve its work on information systems

At the same time a cybersecurity management and data security management leading This scan provided clear data support for security security technical protections emergency work

group chaired by the Chairman of the Board has also been established with an executive fortification and vulnerability remediation further mechanisms and employee education and training.office set up beneath it to coordinate the implementation of cybersecurity and data solidifying the Company's system security defenses.security measures.

70 712025 Environmental Social and Governance (ESG) Report

Data Security The Company has developed the Data Backup and Classified and Tiered Management Customer PrivacyTh e Company places great emphasis on protecting customer privacy and safeguarding Regulations implementing a tiered data classification management system and customer data. Ancai Solar Thermal Technology has formulated the Confidentiality

Practices conducting irregular backups for critical data. Each unit assigns a dedicated person to Management System designating customer information as confidential and specifying the manage daily computer operations and backup important data within their department Protection responsibilities and control measures for confidentiality work.to ensure that in the event of a system failure system recovery can be performed as

quickly as possible thus ensuring business continuity through data backup.Data is managed Management Adhering to the management principle of "accountability rests with the person who

General Data Responsibilities handles the confidential information" the head of each department serves as the through a tiered person responsible for confidentiality within the respective department.classification system Includes personal or departmental information office documents email data etc.Confidential documents materials and media must be stored in filing cabinets

Confidentiality equipped with security facilities. It is strictly prohibited to transmit confidential information through social media or messaging software. Personnel handling

Important Data Measures confidential matters must undergo handover procedures upon leaving their

positions and comply with the mandatory decryption period management.Includes archival data monitoring data server data etc.Individuals who effectively prevent leaks will be recognized while those who

violate the regulations will be given warnings have wages deducted have their

In accordance with the Log Audit Management System the Company conducts audits of security-related incidents recording Accountability labor contracts terminated or be referred to judicial authorities based on the

necessary information through logs and taking corresponding actions thereby establishing an effective security audit severity of the violation.mechanism. At the same time the Company regulates the daily behavior of server room staff in line with the Data Center

Management System to ensure the normal operation of the Company’s computer systems.Log Audit Log Collection

Management The content of log collection should include security-related events such as significant user activities abnormal use of system resources and execution of

critical system commands.Log Analysis and Reporting

Network and system administrators review and analyze logs daily. If abnormalities

are detected the system should be inspected to confirm whether there has been

an intrusion and appropriate reports should be made.Log Security Protection

Ensure that only security and audit administrators have the authority to view and

operate the logs.The Company considers employees as the core element of data security protection and implements data security responsibilities

for all employees through cybersecurity and data security training and cultural development.[Case] Cybersecurity Training

On September 28 2025 the Company organized

cybersecur i ty t ra in ing. Through case analys is

interactive dril ls and other methods the training

enhanced employees' ability to identify and prevent

common risks such as phishing emails and social

engineering. The training reinforced the culture that

“cybersecurity is everyone’s responsibility” driving the

internalization of security protocols as an integral part

of job responsibilities.Training site

72 732025 Environmental Social and Governance (ESG) Report

Protection of Employees’ Rights

Better Life and Interests4 Employee Training and DevelopmentOccupational Health and SafetySocial Contribution74 752025 Environmental Social and Governance (ESG) Report

Employee Turnover

Metrics Unit 2025

01 Number of New Employees Person 2

Protection of Employees ’ Number of Employees Departed Person 20

Rights and Interests Employee Turnover Rate Person 0.98

Number of Departures Female Person 5

by Gender Male Person

Ancai Hi-tech firmly believes that employees are the most valuable asset of the 15

Company and is committed to building standardized equal and harmonious Under 30 (exclusive) Person 1

labor relations. The Company strictly follows laws and regulations such as

the Labor Law and the Labor Contract Law ensuring the full protection of Between 30 (inclusive) and 40 (exclusive) PersonNumber of Departures 5

employees' legal rights through a comprehensive system and humanized by Age Between 40 (inclusive) and 50 (exclusive) Person 8

management measures creating a respectful inclusive and safe working

environment and laying a solid talent foundation for the Company's sustainable 50 and Above Person 6

development.Employee The Company consistently adheres to the core principles of openness transparency equal Equality and The Company is dedicated to fostering a diverse equal and inclusive workplace. We competition and merit-based selection in its employee recruitment management. It has respect the uniqueness of each employee appreciate the differences between individuals

Recruitment formulated and implemented institutional systems including the Recruitment Management Diversity and believe that diverse perspectives and backgrounds are the driving forces behind Measures (Trial) standardizing the full management process—from recruitment and organizational innovation and development. We firmly oppose any form of discrimination

Management hiring labor contract conclusion to internal position deployment—through standardized procedures. These policies clearly define compliance requirements and operational and prejudice and provide equal development opportunities and comprehensive welfare

guidelines for recruitment at the institutional level ensuring that all candidates enjoy equal protection for groups such as veterans and people with disabilities ensuring that they

Employee Composition competitive opportunities throughout the recruitment process. receive full respect and care in terms of work adaptability labor protection and all welfare

benefits.Metrics Unit 2025

Total Number of Employees Person 2044

Child Labor and We strictly comply with national laws regulations and international conventions and Number of Employees of Minority Nationalities Person 19 resolutely eliminate any form of child labor and forced labor. The Company has established

Number of Employees with Disabilities Person 29 Forced Labor a sound employment review mechanism to ensure the legality and voluntariness of the

entire recruitment and employment process fully protecting the basic rights and personal

Number of Veteran Employees Person 242 Management dignity of every worker.Proportion of Ethnic Minority Employees % 0.93

Number of Employees by Female Person 218

Gender Protection The Company values the protection and development of female employees' rights Male Person 1826 establishing a comprehensive protection system and provides special welfare such

Production Person 1505 of Female as female employees’ hygiene allowances according to the Allowances Subsidies

and Welfare Management Measures. The Company regularly arranges specialized

Technology Person 285 Employees’ Rights gynecological health examinations for female employees taking concrete steps to care for

Number of Employees Sales Person and Interests their physical and mental well-being. Furthermore the Company’s labor union organized 36 a diverse range of engaging activities such as the International Women's Day Fun Sports

by Function Finance Person 38 Meet not only enriching the leisure lives of female employees but also strengthening their

sense of belonging and team cohesion.Administration Person 180

76 772025 Environmental Social and Governance (ESG) Report

Performance The Company has formulated the Performance Management System (Trial) and established [Case] International Women's Day Fun Sports Meet a scientific and complete performance appraisal and appeal mechanism with a performance-

Appraisal and oriented approach balancing both process and results focusing on the joint development of employees and the Company and providing governance support for sustainable development.On March 7 2025 the Company's labor union hosted the “Blossoming in the Spring Breeze” Fun Sports Meet to By establishing a performance appraisal leadership group and defining the responsibilities of

celebrate International Women's Day for female employees. The event featured a variety of fun team games and Appeals each department the Company ensures that the appraisal process is standardized fair and transparent. The appraisal criteria cover both departmental and individual levels combining

sports activities. It not only allowed female employees to unwind relax and strengthen friendships amid their busy qualitative and quantitative methods to achieve a scientifically tiered and classified assessment.work schedules but also showcased a spirit of unity and forward momentum injecting warmth and vitality into the In addition the Company has established an effective performance appeal channel. If the

Company's culture building. assessed party has objections to the results they can file a complaint within the specified

time limit. Relevant departments will investigate and verify the issue within a week and provide

feedback ensuring the protection of employees' legal rights and reflecting the people-centered

management philosophy.Employee During the reporting period the Company conducted diversified employee care and skill

empowerment activities focused on employees' physical and mental health and career

Activities development continually enhancing team cohesion and fostering employees' sense of belonging thereby injecting intrinsic momentum for the Company's sustainable development.[Case] Employee Badminton Tournament

In April 2025 the Company successfully held an employee badminton tournament titled "Shuttlecock & Synergy"

with over 50 participants from various departments and subsidiaries. The event aimed to create a cross-

Activity Photos departmental communication platform through sports promote employees' physical and mental health and foster a

positive corporate culture.Remuneration The Company has established a standardized compensation management system centered on the Compensation Management System. Compensation design considers

and Benefits both external competitiveness and internal differentiation principles aiming to attract motivate and retain core talent. The Company’s compensation structure mainly consists

Management of fixed salary performance-based salary and various allowances and subsidies. The performance-based salary is closely tied to the Company's overall performance

departmental evaluation results and individual performance assessment.The Company has established a comprehensive multi-dimensional welfare protection

system that covers statutory benefits allowances humanistic care and career

development effectively enhancing employees' sense of belonging and happiness and

consolidating the collective strength for the Company’s sustainable development.[Case] Teacher's Day "Mentor-Mentee" [Case] "Beat the Heat" Employee

Benefits Cultural Promotion Activity Care Campaign

Special or additional labor consumption allowances technical allowances In September 2025 in celebration of Teacher's Day the In the summer of 2025 Ancai Solar Thermal

Subsidized Benefits meal allowances seniority allowances educational allowances transportation Company launched a "Mentor-Mentee Pairing" cultural Te c h n o l o g y o rg a n i z e d t h e " B e a t t h e H e a t "

subsidies housing allowances communication subsidies heating subsidies promotion activity with the theme "Craftsmanship employee care campaign distributing green tea

talent subsidies overseas work subsidies etc. Inheritance." By sharing cross-position and cross- and other cooling supplies to front-line employees.generational stories of mentoring and guidance the This initiative aimed to safeguard the health of

Public holidays paid annual leave sick leave personal leave work-related injury campaign highlighted the Company’s talent cultivation employees working in high temperatures conveying

Leave Benefits leave marriage leave paternity leave maternity leave only-child nursing leave philosophy of respecting teachers valuing education the Company’s humanist ic care and further

bereavement leave etc. and passing the torch—injecting lasting momentum strengthening team cohesion and employees' sense

into skills inheritance and youth development. of belonging.Statutory Benefits Five insurances and one housing fund supplementary medical insurance etc.Labor Union Benefits Employee activities collective employee welfare etc.Regular health checkups employee canteens/meals employee dormitories

Healthy Living female employee hygiene expenses only-child allowances provision of work

uniforms helmets safety shoes and other labor protection supplies

Development Benefits Employee training job rotation and exchanges performance incentives rational suggestion rewards etc.

78 792025 Environmental Social and Governance (ESG) Report

Employee The Company has established a robust and targeted employee support mechanism. Democratic The Company places great emphasis on democratic management having established the Employee Through a combination of initiatives—including the "Autumn Education Support" program Representative Congress System and the Factory (Company) Affairs Transparency System. These

Support "New Year and Spring Festival Warmth" campaign medical mutual aid and hospitalization Governance systems form the foundation of the democratic management structure supplemented by factory care—the Company takes concrete actions to help employees in need overcome affairs transparency and collective bargaining. The Company ensures that at least one employee

difficulties delivering organizational care where it matters most and effectively enhancing representative conference is held annually safeguarding employees' right to know participate

employees' sense of belonging and well-being. express and supervise. At the same time the Company utilizes various channels including employee

representative meetings bulletin boards and internal websites to promptly disclose regulations

[Case] Visits to Employees in Need production operations employee welfare and other topics of interest to employees thereby

enhancing management transparency. The Company's labor union regularly conducts the "My

In January 2025 the Company in collaboration with the higher-level labor union conducted a series of support Idea for Our Growth" employee suggestion solicitation initiative. Through channels such as online questionnaires the union keeps a long-term open gateway for suggestions listens to employees'

activities for employees in difficulty. The Company visited grassroots employees and front-line staff representatives voices pools collective wisdom and drives the Company's high-quality development.distributing care funds and supplies. This initiative effectively enhanced employees’ sense of belonging and the

Company’s collective strength. Labor Union Committee’s 3rd Membership Representative

Meeting and Staff Representative Meeting

[Case] Care Campaign for Children of Employees in Need

On the eve of International Children's Day in 2025 the Company launched a Children's Day care campaign bringing Metrics Unit 2025

festive greetings and corporate care to the children of seven employees in need. By building a support system

that combines material assistance with emotional care the Company extended its warmth to employees' families Number of Projects Approved by the Employee Congress Item 2

tangibly enhancing employees' sense of belonging and well-being.Number of Trade Union Members Person 2012

Employee During the reporting period the Company conducted a specialized satisfaction survey

focusing on the employee dining experience covering key departments such as the

Satisfaction Discipline Inspection and Audit Department and the Operations Management Department.Employee feedback was systematically collected across five key dimensions including

service quality food quality and environmental hygiene. The survey results indicated that

employees gave positive overall feedback on the dining services with monthly scores

consistently above 98 points. This demonstrates the Company's high regard for employee

Metrics Unit 2025 living standards and heartfelt care.Number of Employees in Difficulty Receiving Assistance Person 190

Amount of Assistance for Employees in Difficulty RMB 10000 34.9

80 812025 Environmental Social and Governance (ESG) Report

Training The Company adopts diverse training measures combining online and offline methods covering all employees. Systematic training is conducted for different positions and levels

Measures comprehensively enhancing employees' professional skills and overall capabilities.02 [Case] Professional Knowledge Training for Semiconductor High-Employee Training Purity Quartz ProductsOn September 25 2025 the Company organized a specialized training on “High-Purity Quartz Product Productionand Development Process” for semiconductor professionals conducted by internal instructors and broadcast live via both on-site sessions and DingTalk. The training focused on the core aspects of semiconductor manufacturing processes and

aimed to strengthen employees' professional understanding of the high-purity quartz product production process.The Company consistently views talent as the core driving force for It not only enhanced the technical and practical abilities of key positions but also provided strong talent support for

the Company’s expansion into the semiconductor material sector further solidifying the Company’s sustainable

its development. It is committed to building a systematic multi-level development foundation in emerging industries.talent development system continuously optimizing employee training

mechanisms and comprehensively enhancing employees' professional

competence and overall capabilities thus laying a solid talent foundation

for the Company’s high-quality sustainable development.Training System The Company continuously improves its employee training system and conducts various training sessions under the Employee Training Management Procedure covering all

employees. The goal is to enhance employees' professional knowledge skills and overall

quality providing talent support for the Company's sustained development.[Case] Employee Mental Health Training

Metrics Unit 2025

On June 24 2025 Ancai Photovoltaic New Materials organized a mental health training session inviting a senior

Number of Employee Training Sessions Session 18 psychological counselor to conduct a lecture on “Emotions and Communication” with active participation from

employees across departments. Through professional psychological counseling and interactive communication

Total Attendance Person-times 2460 the training effectively improved employees' mental health literacy and communication skills creating a positive

harmonious and healthy working atmosphere.Employee Training Flowchart

Training for New and

Transferred Employees

Training for Employees on

External Study Programs

Training for General

Technical Positions

Career The Company attaches great importance to employees' career development and is

committed to building a fair and diverse growth platform. We have established a clear job

Skills Assessment Development system based on the Talent Development Plan the Mentorship Management Measures

and other systems setting up dual career tracks for management and professional

Training for Important sequences. Employees are categorized into three levels and a talent pool offering

Positions them both vertical promotion and horizontal rotation opportunities through scientific

selection standards and structured recruitment procedures. At the same time we focus

on the continuous improvement of employees' professional skills implementing various

Hiring Part-time Trainers training methods such as "mentor-mentee" programs specialized training external study

assignments and continuing education. These programs are supported with funding

and assessment incentives to help employees continually enhance their professional

competence and overall qualifications fostering mutual growth of personal value and the

Company’s development.

8283

Training and assessment

Training Management

Training Effectiveness Evaluation

Training implementation

Developing Training Plans

Identifying Training Demands

Determining Job Descriptions2025 Environmental Social and Governance (ESG) Report

During the reporting period the Company along with its subsidiaries including Xuchang Ancai

and Jiaozuo Ancai successfully obtained ISO 45001 Occupational Health and Safety Management

System Certification.

03

Occupational Health and Safety

To ensure employee health and safety and lay a solid foundation for

sustainable development Ancai Hi-tech consistently prioritizes risk

prevention and control with full participation from all employees. We

have systematically developed a comprehensive occupational health

and work safety management system continuously aligning with ISO

45001 and national work safety standardization requirements. Through

systematic and refined management measures we aim to provide

employees with a safe healthy and sustainable working environment

Jiaozuo Ancai ISO 45001 Occupational Health

ensuring the high-quality development of the Company. Xuchang Ancai ISO 45001 Occupational Health

and Safety Management System Certification and Safety Management System Certification

Work Safety Management System

The Company has developed a series of regulations including the Occupational Health Management System

Compilation the Work Safety Management System the Work Safety Production Standardization Management System

and the Implementation Manual for the Hierarchical Work Safety Risk Control System to build an occupational health

and work safety management system based on risk prevention and control with full participation from all employees.By establishing a responsibility grid that extends across all functions horizontally and down to every level vertically—

from the Work Safety Committee to frontline employees—we have achieved cascading safety targets and full coverage

of responsibilities. By deeply integrating the dual prevention mechanism of hierarchical safety risk control and hidden

hazard investigation and treatment the Company implements strict standardized work permits for key risk points

such as confined spaces and hot work in light of the characteristics of the glass manufacturing industry. Meanwhile

we have established a closed-loop management process covering occupational hazard monitoring employee health

examinations emergency drills and information-based management and regularly conduct internal audits and

management reviews systematically providing a solid guarantee for employee health and stable enterprise operations.Work Safety Responsibility Grid Diagram of Jiaozuo Ancai

General Manager Ancai Photovoltaic New Materials ISO 45001 Ancai Hi-tech ISO 45001 Occupational Health

Occupational Health and Safety Management and Safety Management System Certification

System Certification

Finance Director Deputy General Manager Deputy General Manager

Risk The Company has implemented the Risk and Hidden Hazard Prevention and Hierarchical

Safety Risk Control System continuously carrying out company-wide hazard identification

Management and risk assessment. Through routine comprehensive inspections and dynamic

evaluations the Company exercises hierarchical stratified and categorized precise control

Mechanism over all types of safety risks ensuring that risks are consistently maintained in a controlled

state and thereby reinforcing the management foundation for work safety.Departments and Teams

Employees

8485

Comprehensive

Management

Department

Storage and

Transportation

Workshop

Quality and

Technology

Department

Work Safety and

Environmental

Protection

Department

Power Workshop

Maintenance

Workshop

Deep Processing

Workshop

Forming

Workshop

Melting

Workshop

Batching

Workshop

Finance

Department

Personnel

Department

First-Level Grid Second-Level Grid Third-Level Grid2025 Environmental Social and Governance (ESG) Report

Risk Management Process

[Case] Food Poisoning Emergency Drill

Risk Identification

The Company mobilizes all employees to systematically identify hazards across all equipment facilities and

operational activities within each department. This process spans multiple dimensions including human behavior On July 3 2025 Xuchang Ancai organized a food poisoning emergency drill simulating the full emergency

the condition of objects environmental factors and management deficiencies covering both routine and non- response process after employees at the staff canteen showed symptoms of food poisoning such as vomiting.routine operations all personnel accessing the premises and the entirety of change management ensuring that risk Through this practical drill the rapid response and coordinated disposal capabilities of logistics and safety

identification is comprehensive and leaves no blind spots. management personnel in addressing public health emergencies were enhanced strengthening the line of defense

for safeguarding employees' health and safety.Risk EvaluationRisk Evaluation

The LEC semi-quantitative evaluation method is used taking into account the likelihood of accidents frequency of

personnel exposure and the severity of consequences to calculate risk scores. Based on the scores risk levels are

divided into four categories: major significant general and low risk represented by red orange yellow and blue

colors for management purposes.Risk Detection

Risk identification is visually displayed through hierarchical safety risk control lists major risk bulletin boards and

position-specific risk control cards among other forms. Departments routinely check the implementation of control

measures and the Company regularly supervises and assesses them ensuring dynamic tracking and monitoring of

risk status. [Case] Flood Control and Water Disaster Emergency Drill

On May 22 2025 Xuchang Ancai conducted a flood control and water disaster emergency drill at the south gate

of the bagged warehouse. The drill simulated risks from seasonal floods and extreme flooding causing water

Risk Control accumulation in the warehouse area. Each emergency team responded swiftly and efficiently completed emergency

Based on the grading results control measures are formulated according to the priority sequence of elimination tasks such as sandbag barricading material transfer and drainage rescue. Through the hands-on drill the feasibility

substitution engineering control management control and personal protection. The Company clarifies the four levels of the flood control emergency plan and the capability of emergency supplies were effectively tested enhancing

of control (company department team and position) and responsible parties to ensure that major and higher-level employees' ability to respond quickly and coordinate efforts in flood situations providing strong assurance for the

risks are prioritized for management achieving closed-loop control of risks. Company’s work safety during the flood season.Emergency The Company has established the Emergency Plan for Work Safety Accidents creating a complete emergency response system that includes comprehensive emergency

Management plans special emergency plans and on-site disposal plans. This system covers various

potential accident scenarios including fire and explosion glass melt leakage poisoning and

suffocation heat stroke and food poisoning.[Case] Long'an District’s 2025 Government-Enterprise Emergency Drill

On June 24 2025 Ancai Solar Thermal Technology collaborated with the Long'an District Emergency Management

Bureau Fire Rescue Brigade and other authorities to conduct a district-level government-enterprise emergency drill The Company has established a normalized comprehensive hazard identification

for a liquid ammonia leak. The drill simulated a liquid ammonia leak hazard in the ammonia shed area of the power Identification and management mechanism combining daily inspections special inspections and

workshop covering the entire process from hazard discovery initial response information reporting emergency comprehensive inspections to conduct thorough checks on production sites equipment

response government-enterprise joint rescue on-site disposal to emergency termination. This drill effectively of Hidden facilities and working environments. During the reporting period we organized several

verified the feasibility of the Company's emergency response plan and the efficiency of the government-enterprise comprehensive inspections covering the entire production area of the Company. Hazard

emergency linkage mechanism tangibly enhancing the rapid response and coordinated disposal capabilities for Hazards issues were addressed promptly effectively eliminating unsafe factors on-site and

major hazard source leakage accidents thereby building a solid line of defense for regional safety. strengthening the work safety defense line.Waste in the semi-finished product warehouse was not cleaned in time.Before After

Rectification Rectification

86 872025 Environmental Social and Governance (ESG) Report

Broken glass on the floor of the raw material area was not cleaned in time. Metrics Unit 2025

Before After Number of Work Safety Accidents Case 0

Rectification Rectification Number of Work-Related Deaths Person 0

Work-Related Fatality Rate % 0

Total Number of Work-Related Injuries Person 2

Work-related Injury Rate % 0.098

Work Safety Working Hours Lost due to Work-Related Injuries Hours 2824

The lighting outside the waste heat power generation control room door was not turned off in time.Total Working Hours Hours 4316927

Before After

Rectification Rectification Lost Time Injury Rate (per Million Hours) Hours/million working hours 654.17

Injury Rate per Million Hours Worked People/million working hours 0.46

Investment in Work Safety RMB 10000 1218

Proportion of Work Safety Investment to

Operating Revenue % 0.42

Number of Safety Training Sessions Cases 171

Finished product racks on the north road of the factory were tilted posing a safety risk. Number of Participants in Safety Training Person-times 10762

Safety Training

Before After Total Training Hours Hours 32286

Rectification Rectification Average Production Safety Training Hours

per Employee Hour/Person 15.80

Investment in Work-Related Injury Insurance RMB 10000 193.09

Total Number of Employees Covered by

Work-Related Injury Insurance Person 2044

Total Number of Employees Required to

Participate in Work Injury Insurance Person 2044

Coverage Rate of Work-Related Injury

Insurance for Employees % 100

Investment in Work Safety Liability Insurance RMB 10000 0.9

Occupational Number of Employees Covered by Work

Following the principle of "accountability rests with the person in charge" for work safety health Safety Liability Insurance

Person 11

Metrics and the Company has established a work safety management goal and target system Total Number of Employees Required to Person 11

covering all employees processes and systems. Responsibilities are delegated step by Participate in Work Safety Liability Insurance

Targets step to managers and staff at all levels. Through quantitative assessments and dynamic Coverage of Work Safety Liability Insurance % 100

tracking we ensure the effective implementation of safety management requirements and Number of People Suffering From Person 0

continuously improve intrinsic safety performance. Occupational Diseases

Metrics Target Value Incidence Rate of Occupational Diseases % 0

Remarks: The statistical scope of the number of work safety accidents number of work-related deaths total number of work-related injuries and working hours lost due to work-related

Safety Incidents of General Severity or Above injuries covers Ancai Solar Thermal Technology Xuchang Ancai Pharmaceutical Glass Project Department and Ancai Energy.0 The Company has established a strict full-process management mechanism for accident reporting investigation

and handling. Once a work safety accident occurs the emergency response is immediately activated. On-site

Mass Occupational Health and Safety Accidents or Incidents 0 Safety personnel report the incident and carry out initial treatment. The main person in charge of the Company quickly arrives at the scene to organize rescue efforts and prevent the accident from escalating. Strictly adhering to the

Safety Complaints That Seriously Affect the Company’s Reputation 0 principles that the root cause must be thoroughly investigated accountability must be clearly assigned corrective Accident measures must be fully implemented and all relevant personnel must be educated (the "Four Non-Leniencies" Certification Rate of the Main Person in Charge and Safety principle) the Company reports the accident to the competent government authorities within the prescribed time

Management Personnel 100% limit and establishes an accident investigation team. This team conducts an in-depth analysis of the accident's Managementcauses makes definitive responsibility determinations and develops and implements preventive measures Certification Rate of the Main Person in Charge and Safety

100% ensuring that lessons learned from accidents are translated into opportunities for management improvement and Management Personnel continuously enhancing the effectiveness of work safety management.

88 892025 Environmental Social and Governance (ESG) Report

Training The Company promotes the theme "Everyone Emphasizes Safety and Is Capable of Management Based on the Hazardous Goods and Major Hazard Source Management System the Company

Emergency Response" through a wide range of occupational health and safety cultural implements strict control over the entire lifecycle of hazardous chemicals establishing and and Cultural of Hazardous improving regulations and management records covering procurement storage usage and activities covering all employees.Development disposal. Storage sites are managed by designated personnel equipped with comprehensive

Chemicals fire-fighting emergency facilities and monitoring alarm devices. Strict control requirements including classified and zoned storage limited quantity storage and a "dual-person dual-lock

[Case] “Work Safety Month” Campaign of Ancai Solar Thermal Technology system" are enforced. During the use phase standard operating procedures are rigorously

followed and specialized training and personal protection for operators are strengthened to

In June 2025 Ancai Solar Thermal Technology carried out the Work Safety Month activities under the theme ensure regulated operations and controlled risks."Everyone Emphasizes Safety Everyone is Capable of Emergency Response—Unblocking Life-saving Passageway".Through special training warning education hazard identification awareness safety consultation and emergency Hazardous Goods Management Flowchart

drills the event effectively enhanced the safety awareness and emergency response capabilities of all employees

creating a strong safety culture atmosphere.Specify

Identify the need for Develop a environmental and

hazardous substances procurement plan safety requirements

to suppliers

Conduct acceptance Ensure environmental

Store materials by inspection of procured and safety compliance

user departments flammable explosive by suppliers during

in accordance with and chemical dispatch and

regulations substances transportation

[Case] Occupational Disease Prevention and Control Awareness Program

In April 2025 coinciding with the 23rd National Awareness Week for the Law on Prevention and Control of

Occupational Diseases Ancai Photovoltaic New Materials organized a series of awareness and learning activities.These activities provided employees with foundational knowledge on the Law on Prevention and Control of Strictly adhere to the Prepare emergency

Occupational Diseases and classifications of common occupational diseases effectively improving their overall relevant regulations response plans to

Treat chemical waste

occupational health competence. during use address emergencies

liquids after use

Testing of During the reporting period the Company commissioned qualified professional agencies to conduct comprehensive testing and status evaluations of occupational disease hazard

Occupational factors at production workplaces. The testing covered key processes such as raw material preparation smelting deep processing and auxiliary production with multiple testing points set

Hazard up to assess major hazard factors including silica dust noise high temperature and chemical toxins. The results indicated that the Company generally complies with national occupational

Factors health requirements and effectively identified key control points providing a scientific basis for

targeted governance and continuous improvement.The Company has established a comprehensive occupational health management file along

Occupational with monitoring and evaluation ledgers enabling dynamic tracking of changes in occupational

disease risk factors. By implementing automated and enclosed process modifications

Safety The Company has established a Related Party Management System integrating Hazard and installing high-efficiency dust removal and ventilation facilities the Company reduces contractors and other related parties into the unified safety management system and employees' exposure to hazard risks from the source. During the reporting period the

Management implementing full-process closed-loop control. The Company strictly implements the Protection Company strictly enforced position-specific operating procedures provided employees admission review process comprehensively evaluating the qualifications work safety Measures with personal protective equipment meeting national standards such as dust-proof masks

for Related conditions and personnel certification of contractors. Before operations commence noise-proof earplugs gas masks and protective clothing and established distribution and usage ledgers. Meanwhile the Company fully implements the occupational disease hazard specialized safety education training and technical disclosure are carried out to ensure that notification system with standardized warning signs and hazard notification cards placed at

Parties related parties are familiar with on-site risks and operational protocols. During operations operational sites ensuring that occupational disease risks are minimized.on-site supervision inspection and safety performance assessment are strengthened Occupational During the reporting period the Company strictly carried out the occupational health with any violations promptly corrected and factored into performance evaluations. Through surveillance system covering the entire employment cycle—pre-placement in-service

regular assessment of related parties' safety performance the Company ensures their Health and exit—achieving full coverage of health examinations for employees in positions with

continuous compliance with its work safety management requirements thereby effectively occupational hazard exposure. Through standardized record-keeping and timely feedback

preventing operational risks associated with related parties. Checkups a closed-loop management mechanism from health checkups to risk intervention has been established effectively safeguarding employees' health rights and interests. Additionally

employee occupational health surveillance files were also established and are dynamically

updated to closely track their health status.

90 912025 Environmental Social and Governance (ESG) Report

Rural The Company deeply integrates into the rural revitalization strategy opening sales

channels for agricultural products through consumption-based support and delivering

Revitalization corporate warmth through charitable donations continuously empowering rural

04 development.

Social Contribution [Case] One-Day-Donation Campaign

In 2025 the Company responded to the call from the Office of the CPC Anyang Municipal Committee and the Office

of the Anyang Municipal People's Government by organizing all employees to participate in the One-Day-Donation

campaign. Adhering to the principles of "broad mobilization full participation voluntary giving and encouraging

While pursuing high-quality development Ancai Hi-tech has always generosity" the campaign raised a total of RMB 30528 in donations. All funds were allocated to rural revitalization

remained committed to fulfilling its social responsibilities as a state- support projects such as "Elderly Care and Assistance in Henan" and "Education and Student Aid in Henan." The

campaign demonstrated the dedication of the Company's employees to public welfare and their commitment

owned enterprise. In response to national and government calls to giving back to society and through it the Company tangibly fulfilled its social responsibility as a state-owned

the Company has actively engaged in public welfare initiatives and enterprise in supporting rural revitalization.contributed to rural revitalization.[Case] Agricultural Product Procurement for Rural Support

The Company uses public welfare projects as a platform and relies on employee

Public Welfare participation to continuously carry out charitable donations charitable blood donations and other public welfare initiatives demonstrating the responsibility of a state-owned In 2025 Ancai Photovoltaic New Materials connected with the Gaobeihe Village Planting Cooperative in Long'an

and Charity enterprise through practical actions. District through procurement to conduct consumption-driven assistance. Throughout the year the Company procured a cumulative total of approximately 11.05 metric tons of vegetables totaling RMB 13363. This agricultural

To further standardize its public welfare efforts the Company has developed product procurement initiative helped the village cooperative find market outlets for its produce supporting rural

the Donation Management System promoting the systematic and standardized revitalization through concrete actions.development of charitable work.[Case] Charitable Blood Donation

[Key Performance]

In December 2025 the Company organized a voluntary blood donation campaign themed "Giving Blood Giving

Love." Employees responded with great enthusiasm actively donating blood and interpreting the spirit of dedication

and responsibility through tangible actions. During the reporting period the Company invested RMB 43900 in rural revitalization benefiting

1551 people. Additionally the Company procured local logistics and transportation services worth

RMB 183 million and wooden processed products and packaging materials worth approximately

RMB 61 million taking concrete actions to drive the development of local rural industries.Charitable Blood Donation

[Key Performance]

During the reporting period the total volunteer hours amounted to 642 hours with 326 participants

and a total public welfare investment of RMB9800.

92 932025 Environmental Social and Governance (ESG) Report

Annex Article 8 and Articles 20 to Response to climate 201-2/305 E1

change 28

Articles 29 30 31 33

Environmental 305/306 E2.1/E2.2/E2.4

management

01 Indexes

Articles 34 35 36

Energy utilization 302 E3.1

Shanghai Stock（GRI Standards） （CASS-ESG 6.0)》Guidelines on Corporate Exchange Self-Sustainability Reporting Water resource utilization Articles 34 36

Contents Standards of the Global Social Responsibility

Regulatory Guidelines for 303-1 E3.2

Reporting for Chinese Listed Companies No. 14 Reporting Initiative (GRI

Enterprises (CASS-ESG - Sustainability Report Standards)

6.0) (for Trial Implementation)

Material utilization

301 E3.3 Articles 34 37

About the Report 2-2 P1.2 Articles 3 4 6 and 7 Responsible supply chain 204/308/414 S3.1/S3.2 Articles 45 46

Message from 2-22 P2.1 / Innovation-driven 203-1 S2.1 Article 41 42

Chairman development

Product and service

About Ancai Hi- 2-1/2-6 P3.1/P3.2/P3.3 / safety and quality 416/417 S3.3 Article 47

Tech

Data security and

customer privacy 418 S3.4 Article 48

2-10/2-11/2-12/2-16/2- protection

Sustainable G1.1/G1.3 Articles 5 9 10 11 14 18

development 29/3-1/3-2/3-3 51 53

governance Protection of employees’ 401/402/405/406/ Articles 49 50

rights and interests S4.1407/408/409

Standardized 2-9/2-10/2-11/2-12/2- G1.1 Article 12 Employee training and governance 404 S4.3

Article 50

18/2-19/2-20/2-29 development

management and Occupational health and 403 S4.2 Article 502-15/2-27 G1.2 Article 52

risk control safety

Articles 38 39 and 40

Investor relations 2-29 G1.3 Articles 9 44 and 53 Contribution to society 413 S1

management

Indexes Article 57

Business conduct 205/206 G2.1/G2.2 Articles 54 55 and 56

/ A3

Feedback Form

/ A6 Article 53

9495

E n v i r o n m e n t a l p r o t e c t i o n I n d u s t r y v a l u e B e t t e r l i f e A n n e x

C o r p o r a t e g o v e r n a n c e2025 Environmental Social and Governance (ESG) Report

02 Feedback Form

Dear reader

Thank you for reading this report. We highly value and look forward to hearing your feedback on this

report. Your comments and suggestions are crucial for us to continuously improve our information

disclosure management and practices in connection with ESG. We welcome and sincerely appreciate

your valuable comments!

1. Your overall assessment of our performance in ESG:

□ Very Good □ Good □ Average □ Below Average □ Poor

2. What is your overall evaluation of this report

□ Very Good □ Good □ Average □ Below Average □ Poor

3. How do you evaluate our performance in communications with stakeholders

□ Very Good □ Good □ Average □ Below Average □ Poor

4. How do you think we have fulfilled our product responsibilities

□ Very Good □ Good □ Average □ Below Average □ Poor

5. How do you think we have performed in terms of environmental safety and occupational

health

□ Very Good □ Good □ Average □ Below Average □ Poor

6. How do you think we have fulfilled our employee responsibilities

□ Very Good □ Good □ Average □ Below Average □ Poor

7. How do you think we have performed in terms of ESG

□ Very Good □ Good □ Average □ Below Average □ Poor

8. Any comments or suggestions on our ESG performance and this report

96Email: acht@acht.com.cn

Address: South Section Zhongzhou Road Anyang City Henan Province China