CONTENTS

C O N T E N T S

Changhong's long-standing 01 Green Changhong 02 Innovation-driven Changhongfoundation advancing low-carbon development advancing industrial upgrading 03

Opening Statement building a solid base for development

Reporting Guidelines 03 Optimizing the Corporate Governance System 23 Actively Address Climate Change 47 Driving breakthroughs in core technologies 77

Message from the Chairman 05 Strengthening Internal Control and Risk Prevention 30 Strict environmental compliance 56 Strengthening Product and Service Safety and Quality 88

About Sichuan Changhong 07 Adherence to Ethical Business Practices 35 Advancing robust green operations 60 Strengthening Data Privacy Management 96

Sustainable Development Management 11 Strengthening Investor Relations and Information 39 Enhancing resource utilization efficiency 61

2025 Sustainable Development Highlights 19 Disclosure Practices Developing a green circular economy 73

Practicing Compliant Tax Governance 41 Strengthening biodiversity protection 74

People-oriented Changhong Responsible Changhong

Safeguarding Employee Growth 04 Empowering Synergistic DevelopmentClosing Statement 05

Outlook 141 Improving Fair Employment Mechanisms 101 Deepening the Responsible Supply Chain Ecosystem 123

Appendix 143 Safeguarding Employee Rights and Well-being 104 Supporting All-around Rural Revitalization 135

Empowering Comprehensive Employee Development 107 Actively Fulfilling Social Responsibilities 138

Implementing Occupational Health and Safety 11303 ESG Report 2025 Opening Statement 04

Reporting Guidelines Short Name Description

Short Name Full Name Short Name Full Name

Introduction Company the Company we

Sichuan Changhong Electric Co. Ltd. Sichuan Hongxin Software Sichuan Hongxin Software Co. Ltd.Sichuan Changhong Electric Co. Ltd. (hereinafter referred to as "Sichuan Changhong" "the Company" or "we") adheres to the principles and Sichuan Changhong

of transparency and openness in compiling this report which aims to provide shareholders investors customers employees non-

profit organizations media and government bodies with a comprehensive overview of Sichuan Changhong and its subsidiaries' actual Sichuan Changhong Minsheng Logistics The Group The Company and its subsidiaries Changhong Minsheng

performance risks and opportunities in sustainable development. This report has been prepared by the Company's ESG Management Co. Ltd.Office. Sichuan Changhong Electronics Holding Changhong China Smart

Changhong Holding Group Changhong Smart Display (China)

Group Co. Ltd. Display

Guangdong Changhong Guangdong Changhong Electronics Co. Sichuan Changhong Real

Sichuan Changhong Real Estate Co.Ltd.Electronics Ltd. Estate

Scope

Sichuan Changhong Kuaiyidian Electrical

The "Annual ESG Report" spans from January 1 2025 to December 31 2025. Some sections may cover a longer period and clarifications Changhong (Hong Kong) Changhong (Hong Kong) Trading Limited Sichuan Kuaiyidian Service Co. Ltd.will be provided where applicable. The Report defines impact horizons as follows: short-term (within one year after the reporting

period) medium-term (one to five years after the reporting period) and long-term (beyond five years). Sichuan Changhong Air Conditioner Co. Changhong Air Conditioner Sichuan Changhong Homwee Technology

Ltd. Changhong Homwee Co. Ltd.Sichuan Changhong Packing Printing

Changhong Packaging Sichuan Zhiyijia Network Technology Co.Co.Ltd. Zhiyijia Ltd.Preparation Basis Sichuan Changhong Sichuan Changhong NeoNet Technology Sichuan Mianyang Honghuan Technology

NeoNet Technology Co. Ltd. Honghuan Technology

The preparation of this report primarily references Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Co. Ltd.Companies—Sustainability Report (Trial) Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE—Compilation Sichuan ChangHong mold and plastic Sichuan Changhong Network Technology

of Sustainable Development Reports State-Owned Enterprise Listed Company ESG Special Report Reference Indicator System GRI Changhong Moulding tech Co. Ltd. Changhong Network Co. Ltd.Sustainability Reporting Standards (GRI Standards) United Nations Sustainable Development Goals (SDGs) and Chinese Enterprise

Sustainability Reporting Writing Guidelines (CASS-ESG 6.0). Sichuan Changhong Sichuan Changhong Component Technology Guangyuan Changhong Electronic

Component Technology Co. Ltd. Guangyuan Changhong Technology Co. Ltd.Sichuan Changhong Precision Electronics

Content Source and Reliability Assurance Changhong Precision Changhong International Holding

Technology Co.Ltd. Changhong International (HK) Limited

The text materials data and cases cited in this report are all from the Company's internal statistical data relevant documents and

management systems. All information has been strictly reviewed within the Company and finally approved by the management ESG 081 Electronics Group 081 Electronics Group Co.Ltd Changhong Indonesia Electric Co. Changhong Indonesia

Management Committee and Board of Directors. The Company regularly verifies the effectiveness of the data collection process and Ltd.data management system to ensure the accuracy and reliability of this report. The Company promises that there are no false records SICHUAN CHANGHONG JIJIA PRECISION

or misleading statements in this report and it is responsible for the authenticity accuracy and completeness of the report's contents. Changhong Jijia INDUSTRY CO. LTD Changhong Europe Changhong Europe Electric s. r. o.Sichuan Changhong

Sichuan Changhong Battery Co. Ltd. Mianyang Changhong Mianyang Changhong Technology Co.Disclaimer Battery Technology Ltd.This report may contain forward-looking statements that are based on the Company's reasonable projections and expectations of Zhongshan Changhong Zhongshan Changhong Electric Co. Hongshang Construction Sichuan Hongshang Construction

possible or imminent business activities events or developments. However due to various uncontrollable factors such as market Electric Ltd. Engineering Engineering Co. Ltd.environment and policy changes actual results may differ from these forward-looking statements. As such these statements should

not be used as the primary basis for investments. Changhong Meiling Changhong Meiling Co. Ltd. Changhong Innovation Sichuan Changhong Innovation

Investment Investment Co. Ltd.Changhong Huayi Changhong Huayi Compressor Co.Acquisition Method Chengdu Changhong Chengdu Changhong Electronic Compressor Ltd. Electronic Technology Technology Co. Ltd.This report is prepared in both Chinese and English languages and will be published in electronic form. In case of any discrepancies

between the two language versions the Chinese version shall prevail. Investors and the public can access and download the report from Changhong Jiahua Changhong Jiahua Holdings Limited Sichuan Changhong Sichuan Changhong Gerun Environmental

the official website of Shanghai Stock Exchange. If you have any questions suggestions or feedback regarding this report please feel Gerun Protection Technology Co. Ltd.free to contact us via email at 600839@changhong.com and we will reply to and deal with your feedback as soon as possible. Zhongke Meiling Zhongke Meiling Cryogenics Co. Changhong Electronic Sichuan Changhong Electronic Components

Cryogenics Ltd. Components Co. Ltd.05 ESG Report 2025 Opening Statement 06

Message from the Leadership

As time renews new chapters unfold. 2025 marks the final year of the 14th Five-Year Plan. Despite a complex and rapidly evolving

external environment and intensifying market competition all Changhong employees together with our partners and all sectors of Fostering a People-Centered and Inclusive Ecosystem.society worked hand in hand to achieve mutual benefit and win-win outcomes pressing ahead with unwavering commitment on the In 2025 we placed strong emphasis on stakeholder expectations and intergrated a “people-centered” and “responsibility-driven”

journey toward high-quality development. Over the past year we have fully embodied the Changhong spirit of "hard work pioneering approach into our development strategy striving to create long-term shared value through concrete actions. We upheld fair employment

initiative perseverance and the pursuit of excellence" adhered to our annual operating principles of "seizing opportunities in risk practices continuously enhanced compensation benefits and performance management systems and provided diversified career

response strengthening foundations to enhance quality and efficiency and pursuing development through integration and innovation" development pathways and systematic training programs. We strictly enforced occupational health and safety standards ensuring that

we continuously improved our modern corporate governance system deepened our green and low-carbon transition strengthened over 46000 employees collaborated supported in their professional growth rights protection and long-term development. Across the

lean management and effective operations and achieved new breakthroughs in corporate development bringing the 14th Five-Year value chain we collaborated closely with partners to strengthen supply chain resilience standardized procurement practices ensured

Plan to a successful conclusion. For the full year the Company recorded operating revenue of RMB 108.816 billion up 4.94% year on fair treatment of SMEs and advanced full-lifecycle ESG management for suppliers. During the reporting period the Company was

year and net profit attributable to shareholders of the parent company of RMB 989 million up 40.56% year on year. awarded the title of “China Supply Chain ESG Management Demonstration Enterprise”. We actively fulfilled our social responsibilities

by focusing on industrial upgrading talent cultivation cultural development and consumption-based assistance among other areas.Strengthening the foundations of decision-making to enable sustainable long-term development. We invested more than RMB 17 million to conscientiously implement the rural revitalization strategy improve the well-being of people

In 2025 we advanced the modernization of our corporate governance system in greater depth revised and improved governance rules in less-developed areas and join hands with all parties to build a mutually beneficial and thriving ecosystem contributing Changhong’s

and procedures in strict alignment with regulatory requirements and consistently treated compliant operations as the cornerstone for strength to the sustainable development of society.steady and long-term development. We continued to optimize the composition and diversity of the Board of Directors improved the

evaluation mechanism for directors’ performance of duties and organized eight training sessions on duty performance capabilities

throughout the year thereby continuously enhancing the Board’s operational effectiveness and the quality of scientific decision- On the great journey of the new era the blueprint for the 15th Five-Year Plan has already unfolded.making. During the reporting period the Company convened three Meetings of Shareholders and 23 meetings of the Board of Directors. Looking ahead to 2026 we will remain committed to high-quality development and the goals of carbon peaking and carbon neutrality.Directors’ attendance rate and the approval rate for submitted proposals were both 100%. The Company was honored with the “2025 With a more open mindset we will embrace change; with stronger governance we will reinforce our foundations; with decisive actionsBest Practice Case for Boards of Directors” and the “2025 Best Practice Case for Board Office” by the China Association for Public we will address climate challenges; with innovation we will shape the future; and with a deep sense of responsibility we will contribute

Companies.The company published four periodic reports 105 interim announcements and 46 other reports and documents and was to society. We stand ready to work hand in hand with partners from all sectors advance together toward shared long-term goals

awarded an ‘A’ rating for information disclosure by the Shanghai Stock Exchange. We embedded compliance and internal control and strive to write a new chapter for intelligent manufacturing in China amid the momentum of new quality productive forces while

throughout the entire process of business operations optimized the management of the Three Lines of Defense and the Three Lists continuing to contribute Changhong’s strength to the comprehensive construction of a modern socialist country.and strengthened regular risk screening and compliance control across all units operational links and key areas. During the year

all functional departments revised and improved 85 internal management policies and 63 sales management policies of overseas

subsidiaries were optimized. The Company’s internal control case was selected as a “2025 Best Practice Case for Internal Control” by

the China Association for Public Companies ranking first among local state-owned enterprises nationwide.Board of Directors Statement

Focusing on low-carbon operations and leading green collaboration.In 2025 we actively responded to China’s dual carbon goals by embedding green development throughout the business value chain

and systematically advancing energy conservation and carbon reduction. We have continuously promoted green (zero-carbon) factory As the highest decision-making body for ESG affairs the Board of Directors has set up the ESG Management Committee

certification for many years and achieved outstanding results. Changhong Network Technology was recognized as a national-level to assist in relevant work. The committee is responsible for formulating ESG strategies managing ESG-related issues

green factory while Sichuan Changhong Changhong Air Conditioning and Changhong Electronic Components were designated as ensuring alignment with the Company's business objectives and continuously improving ESG performance.provincial-level green factories. Changhong Huayi obtained SGS Zero Carbon Factory certification marking a significant milestone

in our green manufacturing journey. We continued to enhance our environmental management system with 27 entities maintaining The Company has set ESG strategic objectives related to its business operations. The Board of Directors has reviewed

valid ISO 14001 certification during the reporting period. Through strengthened source prevention and process control we identified and discussed the establishment and progress of the objectives and all ESG initiatives have achieved phased progress

and rectified 1027 environmental risks and delivered environmental training to 33758 participants further improving environmental as planned.awareness and capabilities across our workforce. We are committed to building a green supply chain by incorporating environmental

compliance into supplier onboarding as a veto criterion and encouraging nearly 30 key suppliers to participate in low-carbon initiatives

thereby advancing the green transition across the entire industrial chain. This report details the Company's achievements in ESG which was reviewed and approved by the Board of Directors on

April 23 2026.Deepening Digital and Intelligent Integration and Driving Gains in Quality and Efficiency.In 2025 we remained committed to innovation-driven development advanced technological and product innovation and fully

implemented the “AI+” initiative. We deeply embedded AI technologies across all scenarios of product R&D production and

manufacturing and enterprise operations taking solid steps toward fostering new productive forces and advancing the Company’s

high-quality development. We launched the industry’s first AI-powered “healing” TV introduced the M Fresh Ultra refrigerator series

setting a new benchmark in freshness preservation and released premium air-conditioning products such as the “Shanshuijian” and

“Living & Dining Room PRO” series incorporating AI-driven airflow optimization outlet design and intelligent control to better meet

user needs. We continued to advance intelligent and digital transformation initiatives. Changhong China Smart Display was recognized

as a national-level “Excellence Smart Factory” and six factories were named among the first batch of advanced smart factories in

Sichuan Province. These achievements significantly enhanced our intelligent manufacturing capabilities and operational quality and

efficiency. In addition we implemented AI-powered operations and accelerated enterprise-wide digitalization including upgrades to

digital HR and intelligent finance systems further improving operational and managerial efficiency and quality.07 ESG Report 2025 Opening Statement 08

About Sichuan Changhong

Company Overview Corporate Culture

Originally founded as a state-owned factory in 1958 Sichuan Changhong was incorporated as a joint-stock company in 1988. In March Sichuan Changhong adheres to the philosophy of "Technology-powered Changhong Creating a Better Life" seizing opportunities

1994 it was listed on the Shanghai Stock Exchange with the stock abbreviation: Sichuan Changhong stock code: 600839.SH. It has arising from technological advancements and national industrial upgrades. Driven by innovation the Company accelerates its industrial

four listed subsidiaries: Changhong Meiling (stock code: 000521.SZ) Changhong Huayi (stock code: 000404.SZ) Changhong Jiahua transformation and upgrading continuously strengthening its core industries through dual engines of steady development and quality

(stock code: 03991.HK) Zhongke Meiling (stock code: 835892.BJ) and one company listed on the NEEQ Innovation Layer: Changhong improvement. It nurtures new growth drivers in emerging industries and promotes the rapid growth of potential businesses. Through

Minsheng (stock code: 836237.NQ). Over decades of development from building a foundation in color TVs to expanding into various multiple efforts the Company enhances its core competitiveness building a comprehensive set of advantages and steadily advancing

fields of information electronics the Company has evolved into a global diversified technology enterprise group with business spanning toward its ambitious goal of becoming a world-class electronic information enterprise.smart home appliances general equipment R&D and manufacturing and integrated ICT services.Development History

1970s 1984 1988 1992 1995

Responding to the national call The first automatic assembly line The state-owned Changhong Machin- Changhong was the first in the domestic Won the title of "China's Largest Color TV

Changhong seized the opportunity was introduced from Panasonic in ery Factory was the initiator behind the color TV industry to achieve an annual Base" and "King of Color TV"

and entered the television industry. Japan with a daily output of 1000 establishment of Sichuan Changhong- output exceeding one million units.units per shift. Factory initiated the establishment of

1973 March 1994 1996Sichuan Changhong

Registered trademark "Changhong" It is listed and traded on the Shanghai Stock The Product Division of Changhong Air

1990 Exchange. Conditioners was established.

1976 Became the color TV sales champion 1997

for the first time

Trial-produced the first color TV Changhong became the first enterprise in

China whose TV production exceeded ten

million units with a market share of 35%.

2007

2022 Became the largest shareholder of Meiling

2020

Listed Zhongke Meiling Cryogenics Electric (now Changhong Meiling)

on Beijing Stock Exchange Changhong Jiahua was listed on the 2018 2004

Main Board of the Hong Kong Stock Acquire 081 Electronics Group 2008 Jointly contribute capital to

Exchange. Acquired Huayi Compressor (now establish Changhong Chaohua

Changhong Huayi Compressor) (now Changhong Jiaohua).Acquired Sichuan Changhong Battery09 ESG Report 2025 Opening Statement 10

Business Architecture Award Name Awarding Organization

Brand and Products

China National Certification Center

Smart Home Appliances General Equipment Manufacturing Awarded the first “AAA Well-known Trademark” in the television industry (Beijing)

41.72%9.54%

Changhong Air Conditioning brand awarded "2025-2026 China Air Conditioning Industry China Air Conditioning Industry

Changhong China Smart Display

Changhong Huayi Pioneer in Craftsmanship Quality" Summit Forum Organizing Committee

Guangdong Changhong

Smart display industry primarily Fully enclosed piston compressors China Household Appliances and

Changhong AI TV awarded the 2025 AWE Aplan Award 85Q10T MAX

focused on televisions air-conditioning compressors for Consumer Electronics Expo

Changhong Meiling new energy vehiclesCHANGHONG Panda Lazy Ultra Air Conditioner recognized as the “2025-2026 China Air China Air Conditioning IndustryRefrigerators freezers air conditioners Conditioning Industry Green Smart Enjoyment Star” Summit Forum Organizing Committee

washing machines kitchen appliances

small household appliances biomedical Changhong Pro Shared Air Conditioner for Dining and Living Room recognized as the China Air Conditioning Industry

equipment “2025–2026 China Air Conditioning Industry Dual-purpose Comfort Star” Summit Forum Organizing Committee

Innovation CategoryChanghong’s smart display terminal facility was recognized as a national-level “Excellence Ministry of Industry and InformationICT Comprehensive Services –Intermediate Products 2.54% Smart Factory” Technology (MIIT)

37.35%

The "Multi-scenario Discrete Manufacturing Cloud-end Collaborative Computing Key

Sichuan Provincial People's

Lean manufacturing services Technologies and Applications" project awarded the 2024 Sichuan Province Science and

Changhong Jiahua GovernmentOther Industries represented by electronics Technology Progress Second Prize

ICT product distribution and provision of manufacturing services (EMS)

Network Communication Terminals: Selected for the first batch of "Artificial Intelligence and Robotics Application Industry Star Sichuan Provincial Science and

professional solutions 1.49% Enterprises" in Sichuan Province Technology Department

Sichuan Hongxin Software Logistics Services: 2.13% Selected for the National "High-Quality Dataset Construction Pilot Work List" in the

National Data Bureau

Special Business: 2.78% Embodied Intelligence Field

Enterprise digitalization smart city

solutions Real Estate: 0.74%

Selected for the "2025 Trusted Data Space Innovation and Development Pilot List" National Data Bureau

…

Responsibility Honors

Award Name Awarding Organization

Governance 2025 Business Performance

Received an “A” rating for information disclosure in 2025 Shanghai Stock Exchange (SSE)

Net Profit Attributable toAwarded “2025 Outstanding Practice Case Award for the Board of Directors of Listed China Association for Public Year Operating Revenue Year-on-Year Shareholders of the Listed Year-on-Year Comparison ComparisonCompanies” Companies (CAPCO) Company

China Association for Public

Awarded “ 2025 Best Practice Case Award for the Board Office of Listed Companies”

Companies (CAPCO) 2023

China Association for Public RMB 97.456 billion 5.38% RMB 688 million 46.98%

Awarded “ 2025 Best Practice Case in Sustainable Development of Listed Companies”

Companies (CAPCO)

China Association for Public

Awarded “Best Practice for 2024 Annual Results Briefing of Listed Companies”

Companies (CAPCO) 2024 RMB 103.691 billion 6.40% RMB 704 million 2.3%

Selected as one of the “2025 China ESG Pioneer 100 Listed Companies” China Media Group (CMG)

“Golden Peak” Excellent Case for 2025 CNR Network Finance Center

2025

RMB 108.816 billion 4.94% RMB 989 million 40.56%

Received an ESG “AA” rating from Wind and selected for the Wind China Listed Companies

Wind

ESG Best Practice 100 (Large-cap Category)11 ESG Report 2025 Opening Statement 12

Sustainable Development Management ESG Strategy and Goals

The Company places high importance on sustainable development (ESG) management continuously improving its sustainable Sichuan Changhong is firmly committed to pursuing a path of high-quality sustainable development. The Company actively responds

development management system. In 2025 the Company revised the Board ESG Management Committee Implementation Rules to China’s strategic deployment requirement for “carbon peaking and carbon neutrality” and supports the United Nations Sustainable

further refining its ESG responsibilities and mechanisms in accordance with the latest ESG requirements from the Shanghai Stock Development Goals (SDGs) through concrete actions. While pursuing economic benefits the Company integrates sustainable

Exchange. development into its corporate strategy daily operations and management practices. It actively fulfills its environmental social and

governance responsibilities promoting harmony between enterprise and society with the goal of achieving long-term high-quality

sustainable development and becoming an industry-leading sustainable enterprise.ESG Governance StructureThe Company has established a “Decision-Making Management and Execution" three-tier ESG governance structure. The Board ofGreen transition and development

Directors is the highest governing and decision-making body for ESG work; the Company has formed an ESG Management Committee

responsible for overseeing ESG-related matters; the Company has also set up an ESG Management Office as the executive layer We have established dual carbon targets to achieve peak carbon peak in our operations by 2030 and carbon neutrality by 2049.responsible for implementing ESG initiatives preparing the annual ESG report and other related tasks. At the same time the Company We are advancing the development of low-carbon industrial parks aiming to achieve rooftop photovoltaic coverage across our

actively promotes the establishment of ESG task forces allocating different indicators from the environmental social and governance parks by 2030. Based on 2021 levels we target a 10% reduction in energy consumption intensity (energy use per RMB 10000

dimensions to various functional management departments. A cross-departmental collaboration mechanism has been established of output value) and a 10% reduction in greenhouse gas emission intensity (GHG emissions per RMB 10000 of output value) by

creating a responsibility system with vertical and horizontal coordination to ensure that all tasks are effectively executed. 2030.Decision-Makers Fulfilling Social Responsibility Advancing Smart Transformation

Board Members Responsible for reviewing and making decisions on ESG matters Promote rural revitaliza- Deepen the application of AI

Board of Directors submitted by the ESG Management Committee. tion support public wel- technology and improve digital

fare efforts help drive in- management capabilities. With

Management Level The Board consists of 5 come growth and community innovation as the core driving

Primarily responsible for studying ESG strategies and objectives Strategic

members including the wealth and implement effec- force of the ESG strategy we

guiding and overseeing the implementation of ESG work reviewing Objectives

Chairman who serves as tive support measures to de- will continuously enhance ESG

ESG Management the Company's annual ESG report and major ESG-related matters

the Chairperson of the ESG liver rapid results. practices through technological

Committee and submitting these for Board review.Management Committee. innovation process upgrades

and management innovation.Execution and Coordination

The Company's Board

Layer Primarily responsible for coordinating ESG affairs preparing

Secretary also serves as

and disclosing the annual ESG report and conducting annual

the Director of the ESG

ESG Management Office ESG summaries and evaluations.Management Office.Strengthening the Foundation of Governance Optimizing the supply ecosystem

Execution Level Responsible for managing and executing ESG-related issues Strengthening the Foundation of Governance: Continuously We are establishing a full lifecycle ESG management

and indicators for their respective units. Each unit establishes improving corporate governance operating mechanisms system for supplier onboarding evaluation and exit. By

Functional departments

ESG liaison personnel to coordinate internal ESG matters. standardizing corporate operations and establishing the 2030 100% of suppliers will be required to commit to

and subsidiariesBusiness Units Each unit is responsible for providing annual ESG information objective of “no material governance deficiencies and no ESG responsibilities as part of our onboarding principlesand managing improving and optimizing the relevant issues. material violations of laws and regulations within the next and we will conduct supervision and assessments ofthree years.” suppliers’ fulfillment of social responsibilities.Decision-making Process

0102030405

The ESG The ESG Implementation will

Each subsidiary and

Management Management proceed upon approval

functional department by the Board of

Office consolidates Committee Board Review Directors and all units

submits ESG proposal

reviews and drafts reviews the shall report back on

materials. the execution results.proposals. proposals.13 ESG Report 2025 Opening Statement 14

ESG Capability Building ESG Awards and Ratings

In 2025 the Company was awarded several prestigious ESG honors including the "2025 China ESG Pioneer Listed Companies Top

100" and "2025 China ESG State-owned Listed Companies Pioneer 100" by the State-owned Assets Supervision and Administration

Commission the "2025 Best Sustainable Development Practices Case for Listed Companies" by the China Listed Companies Association

the "Wind China ESG Best Practices 100 (Large-cap)" award the "Third ESG New Benchmark Enterprise Award" by Securities Star and

ESG Professionals the "2025 Annual 'Golden Peak' Excellent Case" by China National Radio's Finance Division.The Company's ESG rating from wind improved from A to AA in 2025 and it received A ratings from both the CSI Index and the Huazheng

Index. The Company also maintained excellent ratings with other specialized ESG rating agencies demonstrating its outstanding ESG

The Company's Board has established an ESG Management Committee which in turn has set up the ESG Management

management and practices.Office. The ESG Management Office is staffed with professionals who have backgrounds and experience in environmental

economics and ESG-related fields. They are responsible for coordinating and executing specific ESG tasks. Additionally

specialized departments have been set up for environmental occupational health and safety management energy and

carbon emission management and other relevant areas with specialized personnel who possess skills across all ESG

dimensions working collaboratively to advance the Company's sustainable development.ESG Training

The Company actively conducts specialized training to enhance the ESG expertise of relevant personnel. The

training includes online and offline ESG-focused courses from the Shanghai Stock Exchange and the Listed

Companies Association as well as specialized training provided by professional ESG consulting firms hired

by the Company. It also covers training on environmental protection occupational health and work safety.In 2025 the Company conducted five ESG-specific training sessions with a 100% participation rate from

relevant personnel in the ESG Management Office. Additionally the Company actively organizes ESG-

focused exchanges and learning sessions with other listed companies. In 2025 the Company conducted

dedicated exchanges on ESG ratings with top-performing listed companies. Through training and learningthe ESG expertise of relevant personnel has been further enhanced. Selected as a “2025 Best Practice Case for SustainableWindDevelopment of Listed Companies” by the China Association "China Listed Companies ESG Best Practices 100 (Large-cap)"

for Public Companies

ESG Evaluation

The Company has established an ESG evaluation and recognition mechanism. For two consecutive years it has

conducted ESG evaluations across its subsidiaries. In 2025 the evaluation criteria were further refined with

assessments made on various dimensions including the performance of listed subsidiaries non-listed subsidiaries'

issue completeness performance and practical case studies. A total of two listed subsidiaries with excellent ESG

performance two non-listed subsidiaries and two "ESG Pioneers" were selected. By establishing role models and

promoting best practices the Company aims to enhance its ESG competitiveness and solidify its management

foundation for sustainable development.China National Radio's Finance Division Securities Star

"2025 Annual ‘Golden Peak' Excellent Case" "Third ESG New Benchmark Enterprise Award"15 ESG Report 2025 Opening Statement 16

Double Materiality Analysis

Environmental Issues Social Issues Governance Issues

In accordance with the relevant requirements of the Shanghai Stock Exchange the Company has carried out a material topic

identification process.Ecosystem and Biodiversity Protection Intellectual Property Management Internal Control and Comprehensive

Risk Management

Environmental Compliance Management Controversial Procurement

Topic Materiality Assessment Process Anti-Monopoly and Fair CompetitionWaste disposal Social Contribution

Due diligence

Pollutant emissions Rural Revitalization

Sustainable Development Topic Materiality Assessment Process of Sichuan Changhong (2025)

Stakeholder communication

Water Resource Utilization Data Security and Customer Privacy

Protection Corporate Governance

Step 1 Circular Economy and Recycling

By studying and analyzing the main Sustainable development reporting standards

Background Research Industry Leadership and Cooperation Anti-Commercial Bribery and Anti-and guidelines at home and abroad and aligning them with the Company’s business Product Carbon Footprint

and Business Analysis – Corruptionstructure we identified 29 potential material topics and compiled into a preliminary Tech Ethics

Building the Sustainable Raw Materialstopic library (see table below). Tax management

Development Topic Library Supply Chain SecurityEnergy Utilization

Innovation-Driven Development

Response to Climate Change

Product and Service Quality and Safety

2-1 Survey

A survey was developed to identify the significance of issues assessing their impact and Employee

financial importance and was conducted with stakeholders. Equal Treatment of SMEs

2-2 Impact Materiality Assessment

The ESG Management Committee in collaboration with stakeholders assessed the

significant or potential economic social and environmental impacts of issues. Results of Double Materiality Analysis

Step 2 Through the above steps Sichuan Changhong identified 8 issues with both financial and impact significance 1 issue with financial

significance but no impact significance 11 issues with impact significance but no financial significance and 9 issues with neither financial

Topic Identification and 2-3 Financial Materiality Assessment nor impact significance. Among them climate change response energy use supply chain security innovation-driven development

Evaluation The ESG Management Committee together with stakeholders evaluated the short- product and service quality and safety employees corporate governance anti-bribery and anti-corruption and tax management are

term mid-term and long-term impacts of issues on the Company's business model financially significant. The Company will provide detailed governance strategy risk impact and opportunity management indicators

operations development strategy and financial condition while organizing relevant and goals for these issues in the report.departments for review and confirmation.

2-4 Expert Evaluation

High Double Materiality Matrix

The Company organized internal experts and key departments to review and confirm the

financial and impact significance of the issues. High impact materiality but not financially material Both financially material and impact material

Ecosystem and Biodiversity Protection Environmental Compliance

Management Response to Climate Change

Intellectual Property Management

Step 3 Innovation-Driven DevelopmentBased on the evaluation data from Step 2 a 2025 materiality matrix was constructed to Controversial Procurement Waste disposal Pollutant Energy

emissions Utilization Supply Chain Security

Topic Materiality Matrix determine the materiality of topics for the current year. Internal Control and Comprehensive Social Contribution Rural Revitalization

Risk Management Product and Service Quality and Safety

Step 4 Anti-Monopoly and Fair Competition Data Security and Customer Privacy Employee Corporate Governance Anti-Commercial Bribery and Anti-CorruptionGuided by the analysis results the Company carried out targeted disclosures and Protection

Topic Disclosure and practices. Equal Treatment of SMEs Water Resource Utilization Tax management

Practice

Industry Leadership and Cooperation Circular Economy Tech Ethics

and Recycling

Due diligence Stakeholder Product Raw Materials

communication Carbon

Sustainable Development Topic Library Footprint

With reference to the No.14 Guidelines for Self-regulation of Listed Companies of Shanghai Stock Exchange — Sustainable Development

Report (Trial) and in consideration of the macro policy context of the regions where the Company operates the characteristics of its Neither financially material nor impact material Financially material but not impact material

industry and its stage of development the Company analyzed the relevant impacts risks and opportunities of sustainable development Low High

and compiled sustainable development topic library as follows: Financial Materiality

Impact Materiality17 ESG Report 2025 Opening Statement 18

Due diligence

Sichuan Changhong continues to improve its due diligence governance system and specialized management systems covering core

Stakeholder communication business areas such as investment and acquisitions supply chain and overseas operations. The Company conducts multidimensional

due diligence through an internal and external coordination model establishes risk grading and remediation tracking mechanisms

The Company has attached great importance to the expectations and demands of all stakeholders actively engaging in dialogue and effectively identifies and rectifies potential risks and strengthens personnel capacity building and process supervision and evaluation to

cooperation with them. To facilitate effective communication with all parties the Group has made ongoing efforts to develop diverse enhance the effectiveness of due diligence work. In the future the Company will continue to deepen ESG due diligence improve digital

communication channels and methods enhance the quality of information disclosure and promptly respond to stakeholder demands. management capabilities strengthen supply chain empowerment and drive quality and efficiency improvements in due diligence work.Stakeholder Demands and Expectations Communication and Response Stakeholder Demands and Expectations Communication and Response

* Exhibition

* Compliance Operation * Transparent Procurement

* Symposium * Official Website

* Tax Payment According to Law * Honest Cooperation

* On-site Interview and Investigation * On-site Investigation

* Anti-corruption * Win-win Cooperation

* Work Report * Real-time Communication

Government or Supervisory Authority * Policy Response Supplier * Product Responsibility Software

* General Meeting of Shareholders

* Corporate Governance * Technical Exchanges

* Investor Exchanges

* Risk Management * Scientific and Technological

* On-site Investigation * Industry Activities

* Return on Investment Development

* Call and Meeting * Calls and e-mails

Shareholder/Investor * Information Disclosure * Industry Progress

* E-mail and Online Interactive Platform

Industry Association or Partner * Product Responsibility

* Protect ion of Employees'

Rights and Interests * Labor Union

* Employee Remuneration and * Daily Interview * Pollution Discharge

Benefits * Employee Symposium * Product Responsibility * On-site Interview

* Employee Health and Safety * Occupational Health and Safety Training * Protection of Employees' Rights * Press Conference

Employee * Emp l o y e e Tra i n i n g a nd * Employee Satisfaction Survey and Interests * Social Media Platform

Development Media * Response to Climate Change

* Product Quality Assurance

* Customer Return Visits

* Customer Rights and Interests Regular Return Visits

* Online Customer Service Hotline * * Social ParticipationProtection Dedication to Public Welfare

* Social Media Platform * Public Welfare

* Customer Privacy Protection * * School-Enterprise Employment * Customer Satisfaction Survey

* Product Service Guarantee *

Employment Promotion

Customer CooperationPublic Welfare Organization or Community

Organization19 ESG Report 2025 Opening Statement 20

2025 Sustainable Development Highlights

Governance Information There were no acts of unfair competition. There were no major internal control deficiencies The Company's internal control case was selected as a "2025 Best Practice Case for Internal Control of Chinese Listed Companies

nor any major non - compliance incidents. by the China Association for Public Companies ranking first among local state-owned enterprise cases nationwide.

100% coverage of board members and executives in anti-bribery and anti-corruption training. 4 regular reports 105 temporary announcements and 46 other reports and documents were disclosed earning an A-level

evaluation for information disclosure from the Shanghai Stock Exchange.From 2017 to 2025 the Company implemented cash dividends for nine consecutive dar years

totaling approximately RMB 1.173 billion in dividends. 1852 special audits were conducted achieving full audit coverage of the Company's business units and key economic areas.The Company answered 256 investor hotline calls and responded to 253 inquiries on the

Shanghai Stock Exchange's e-interaction platform achieving a 100% response rate. The Company received an "AA" rating in the 2025 Wind ESG evaluation and was included in the Best Practices 100 list.

85 systems were revised and improved by various functional departments and 63 sales Selected as "2025 Best Practice for Boards of Directors" and "2025 Best Practice for Board Offices" by the China Association

management systems for overseas subsidiaries were optimized. for Public Companies.Environmental Information Continuously optimizing the ISO 14001 Environmental Management System with environmental The comprehensive energy consumption per 10000 units of TV products was 4.322 tonnes of standard coal equivalent

management system certificates remaining valid for 27 units. (tce) and that of air-conditioning products was 11.19 tce per 10000 standard sets exceeding annual energy-saving targets.Added 1 national-level green factory and 3 Sichuan provincial green factories; the total now includes 5 national-level green

The completion rate and compliance rate of environmental monitoring for each unit reached factories and 7 Sichuan provincial green factories.

100%; the compliance rate for pollutant emissions was 100%; and the compliance rate for

hazardous waste disposal was 100%. Changhong Huayi successfully passed SGS "Zero Carbon Factory" certification marking a milestone in the Company's

green manufacturing efforts.No major environmental incidents occurred nor were there any penalties from environmental

regulatory authorities due to environmental incidents. Carbon emission intensity decreased by 3.54% year-on-year; overall energy consumption intensity decreased by 0.16%

year-on-year.Environmental protection training covered 33758 participants. A total of 1040 environmental Green electricity usage and self-generated photovoltaic power reached 125.4937 million kWh equivalent to reducing

risks were identified of which 1027 have been rectified. 68851.39 tonnes of CO2 emissions.Social Information Innovation achievements were awarded 1 second prize and 1 third prize in the Provincial

Science and Technology Progress Awards and 1 first prize in the China Association of Science No product recalls major product or service negative events or significant product quality and safety incidents occurred.and Technology Industrialization's Science and Technology Awards.No data security or user information leakage incidents occurred.

1 factory was selected as a "National-level Excellent Smart Factory" and 6 factories were

selected as "First Batch of Advanced Smart Factories in Sichuan Province".Conducted occupational health checkups for 9302 employees in hazardous positions as required by law with a 100%

Continuously improving the ESG management system for suppliers and was awarded checkup rate; regularly conducted occupational disease hazard factor testing at work sites with 4045 points tested and a

the title of "China Supply Chain ESG Management Demonstration Enterprise" We also 100% pass rate.promoted nearly 30 core suppliers to participate in ESG ratings driving coordinated green

transformation across the upstream and downstream value chain.Donated RMB 2.7 million to support the introduction of high-quality breeding livestock in assisted areas promoting the

Participated in the preparation of the Supplier ESG Evaluation Guidelines and Enterprise quality upgrading of the yak industry; donated RMB 1 million to set up an education fund in key assisted areas for rural

Supply Chain ESG Management Requirements filling the gap in domestic standards for revitalization to support the development of the teaching workforce.supply chain ESG management.The Company recorded 0 work-related fatalities 0 cases of occupational diseases and an Purchased RMB 11.601 million worth of agricultural and specialty products helping agricultural and pastoral enterprises

occupational disease incidence rate of 0. in supported regions expand and upgrade benefiting 6633 local residents.Changhong's long-

standing foundation 01

building a solid base for development

Sichuan Changhong continues to optimize the corporate

governance system embedding risk control into every aspect

of business management creating a clean and positive

business environment deepening healthy interactions with

the capital markets practicing compliant tax governance

and enhancing multi-dimensional governance to strengthen

the Company's operations injecting continuous momentum

for long-term development.Optimizing the Corporate Governance System 23

Strengthening Internal Control and Risk Prevention 30

Adherence to Ethical Business Practices 35

Strengthening Investor Relations and Information 39

Disclosure Practices

Practicing Compliant Tax Governance 41

Respond to the United Nations Sustainable

Development Goals23 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 24

Optimizing the Corporate Governance System Strategy

Sichuan Changhong is committed to deeply integrating sustainable development into governance practices improving the

governance structure promoting management’s focus on long-term value creation achieving synergy between corporate

governance effectiveness and development goals and providing a solid governance foundation for high-quality development. Risk Financial Impact Impact

Mitigation Measures

Description Impact Duration Level

Closely monitor and track regulatory developments diligently

study regulatory rules and regularly improve governance-re-

lated systems.Governance Corporate Revenue Medium term

Governance Medium Strengthen training for directors and senior management

(decline)

Deficiencies Long term and enhance their ability to perform their duties.The Company operates in strict compliance with the Company Law of the People’s Republic of China the Securities Law of the Peo- Purchase Directors' and Officers' Liability Insurance to

ple’s Republic of China the Corporate Governance Code for Listed Companies the Guidelines for the Articles of Association of Listed strengthen compliance protection for directors.Companies and the Listing Rules of the Shanghai Stock Exchange as well as other relevant laws regulations and regulatory require-

ments. In 2025 in accordance with the new Company Law the Supervisory Board was abolished with the Audit Committee of the Board

assuming its responsibilities. Currently the Company has established a governance system centered on the Shareholders’ Meeting

the Board of Directors and the Management. Through core management systems such as the Articles of Association Shareholders’ Improve the information disclosure management system and

Meeting Rules Board of Directors Rules and Internal Authorization Manual the boundaries of authority and responsibility at each level Information Short term strengthen multi-level review of information disclosure.are clearly defined creating a mechanism of checks and balances in decision-making execution and supervision. Disclosure Rising Costs Medium term Medium

Violations Long term Continuously study regulatory rules and enhance the capacity

building of the information disclosure team.Governance Structure of Sichuan Changhong

Conduct research and provide recommendations on

General Meet- Strategy the Company’s long-term strategic planning and ma- Strengthen communication with investors to convey the Com-

(The highest authority of the

ing of Share- Committee jor investment proposals. Insufficient pany's actual business situation and intrinsic value.Company)

holders Protection of Medium termRising Costs Medium The Company has developed the “Quality Improvement Effi-Shareholders’ Long term ciency Enhancement and Return Focus” plan developed the

Review financial information disclosures supervise and Rights

Audit “Market Value Management System” and executed long-term

evaluate internal and external audits internal controls

Committee shareholder return plans.and exercise the powers of the Supervisory Board.(The highest governance

body of the Companyac- Study the selection criteria and procedures for di-Nomination

countable to the share- Board of rectors and senior management and carry out the Committee Opportunity Financial Impact Impact

holders’ meeting and Directors nomination and qualification review of candidates. Mitigation MeasuresDescription Impact Duration Level

responsible for imple-

menting its resolutions)

Formulate performance evaluation standards for di-

Remuneration Strengthen compliance management across all areas units

rectors and senior management and conduct assess-

and Appraisal and key fields of the Company continuously building a culture

ments; make recommendations to the Board of Direc-

Committee of compliance.tors on remuneration matters. Enhanced Medium

Compliance and Cost term Enhance compliance management in overseas business are-Medium

Risk Control Reduction as proactively plan for compliance transformation and seize

Long term

(Responsible for day-to-day Capabilities market opportunities.operations and execution of Management ESG Manage- Research and propose the Company’s ESG strategic Continuously carry out compliance certification to enhance

specific matters) ment Commit- goals guide and supervise ESG work and review the the Company's competitive edge in compliance.tee annual report and major matters.25 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 26

Risk Impact and Opportunity ManagementIn 2025 the Company was awarded the “2025Best Practice Case for Boards of Directors ofListed Companies” and the “2025 Best Prac-General Meeting of Shareholders tice Case for Board Offices of Listed Com-panies” by the China Association for Public

Companies and the Company Secretary toThe Shareholders’ Meeting is the highest authority of the Company and the Company operates in During the reporting period the Board received a “2025 Board Secretarystrict accordance with the relevant laws regulations and requirements of the Articles of Associa- Performance Evaluation 5A Rating” from the

tion and the Shareholders’ Meeting Rules. Proposals procedures and voting at the General Meet- China Listed Companies Association.ing of Shareholders are conducted strictly in accordance with relevant regulations. When reviewing The Company held

proposals related to connected transactions interested shareholders abstain from voting to en-

sure fairness and reasonableness of the connected transactions. After the meeting resolutions of Shareholders’

the General Meeting of Shareholders are disclosed in a timely manner. 3 Meetings

During the reporting period the Company held 3 Shareholders' Meetings all of which passed the

proposed resolutions. The procedures for convening and voting in each Shareholders' Meeting 13 proposals for were legal and valid with lawyers present to witness the meetings. The Company also provided deliberation

shareholders with secure cost-effective and convenient online voting methods protecting the

legitimate rights of minority investors.Board of Directors

Board Diversity Statement

The Board of Directors as the highest governance body is responsible for convening the Shareholders’ Meeting reporting on its work

The Company places great importance on board diversity striving to create a diverse board composition in terms of age professional

executing resolutions passed by the Shareholders’ Meeting and exercising decision-making powers on significant Company matters.background international experience gender and educational qualifications providing broader perspectives for decision-making and

The Board of Directors has five specialized committees: the Strategy Committee the Audit Committee the Nomination Committee the

continuously enhancing governance and decision-making quality.Remuneration and Appraisal Committee and the ESG Management Committee. It has also established a dedicated meeting mecha-

nism for independent directors promoting scientific and refined governance decision-making. During the reporting period the Company had a total of 9 board members including 6 internal directors and 3 independent directors.The Company's board members cover diverse professional fields including management accounting business and technology each

possessing extensive experience and the knowledge skills and qualifications necessary to perform their duties.

2025:

Held 23 During the reporting periodBoard of Directors Reviewed 82 proposals Held 6 Audit Committee

meetings meetings

The Company had a total of Including

Held 2 3 Remuneration and Held 1 Strategy Committee Held 1 Nomination Commit- 9 board members 6 internal directors independent directors

Appraisal Committee meetings meeting tee meeting

2 Board attendance rate was The proposal approval rate was Held ESG Management

Committee meetings 100% 100%27 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 28

Name Gender Positions Age Education Background Board Effectiveness

Liu Jiang Male Chairman 56 Master’s degree The Company places high importance on the effectiveness and governance efficiency of the Board conducting regular assessments of

the Board and its special committees annually considering factors such as meeting attendance duty performance opinion expression

Heng Guoyu Male Director 58 Bachelor’s degree and the provision of professional advice.Vice chairman

Yang Jin Male 48 Master’s degree 01 Nomination and Selection Process

General manager

Hou Zongtai Male Director 58 Bachelor’s degree Directors are elected by the Shareholders' Meeting and the Chairman of the Board is elected by a majority vote of the Board of

Directors. Board members are selected and reviewed by the Nomination Committee nominated by the Board approved by the

Duan Enchuan Male Director 50 Bachelor’s degree Shareholders' Meeting and filed with the regulatory authority; employee representative directors are elected democratically by the

Employee Representative Congress or other democratic procedures.He Long Male Director 41 Doctoral degree

Qu Qing Male Independent director 56 Doctoral degree 02 Provisions on Terms of Office

Wang Xin Male Independent director 43 Doctoral degree

The Articles of Association stipulate that the term of office for directors shall not exceed 3 years. As of the end of the reporting

period the terms of office of the Board members did not exceed the stipulated duration.Yan Jinjiang Male Independent director 52 Doctoral degree

03 Decision-making Mechanism

Note: Hou Zongtai Duan Enchuan and He Long submitted resignation letters to the Company on December 18 2025 resigning

from their positions as directors. After review and approval at the 41st Board meeting and the Extraordinary General meeting of

2026 Zhang Xiaolong and Shao Min were elected as new directors on January 5 2026. Wang Pingsong was elected as the new The Company implements shareholder resolutions in accordance with the Rules of Procedure for Board Meetings conducts

employee representative director by the Employee Representative Congress on January 22 2026. pre-evaluations and preliminary studies on major proposals and continuously enhances the Board’s decision-making efficiency.

04 Avoiding Conflicts of Interest

Board Independence

In 2025 the Chairman of the Board did not concurrently serve as an executive. The responsibilities and authority between the

senior management and the Board are clearly defined avoiding conflicts of interest.The Company’s board includes 3 independent directors accounting for 33.33% of the total board members with one accounting profes-

sional meeting the requirements for the number and professional qualifications of independent directors as specified in the Measures

for the Administration of Independent Directors of Listed Companies. The proportion of independent directors on the Audit Committee

Remuneration and Appraisal Committee and Nomination Committee is 60% 66.67% and 60% respectively.In 2025 the Company revised and published the Independent Director Working System and the Independent Director Special Meeting Performance Capability Development

System which provide detailed regulations on the appointment requirements independent opinions and safeguards for the perfor-

mance of duties for independent directors ensuring the independence of the Board. In 2025 the Company held 5 special meetings for The Company actively organizes training sessions for directors and senior

independent directors under the Board reviewing major matters such as related-party transactions and audits making independent During the reporting periodexecutives provided by regulatory bodies exchanges and listed company as-

judgments and decisions that provided valuable references for the Board’s decision-making. sociations covering corporate governance market value management and The Company’s directors and senior executives

attended a total of

In 2025 independent directors conducted a total of 6 on-site investigations into subsidiaries and industrial entities. This effectively reg- sustainable development. In 2025 the Company’s directors and senior exec-

ularized the summer joint on-site working mechanism for independent directors of the Company and its listed subsidiaries promoted utives attended a total of 8 training sessions promoting systematic learning

their in-depth participation in corporate governance and ensured effective performance of supervisory duties. During the reporting and enhancing their performance capabilities in the work of the Board. 8 training sessions

period each independent director spent more than 15 days on-site.29 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 30

Executive Remuneration Strengthening Internal Control and Risk Prevention

The Company has formulated regulations such as the Working Rules for the Remuneration and Appraisal Committee of the Board Sichuan Changhong adheres to compliance and internal control as the cornerstone of corporate operations establishing risk

of Directors Remuneration and Performance Evaluation Scheme for Senior Management and the Negative List Evaluation Criteria management mechanisms strengthening internal auditing and legal management and ensuring effective corporate govern-

establishing a clear remuneration mechanism for directors and senior executives and linking executive remuneration to ESG perfor- ance and operational compliance building a solid security barrier for sustainable development.mance. The Board has established a Remuneration and Appraisal Committee responsible for formulating and reviewing remuneration

policies and plans for directors and senior management.The Company has formulated and implemented remuneration-related regulations Compliance and Internal Control

including the Rules of Procedure for the Working Rules for the Remuneration and Ap-

praisal Committee of the Board of Directors Remuneration and Performance Evalua-

Remuneration tion Scheme for Senior Management which clarify the remuneration allocation plans

Policies and The Company views “compliance and internal control” as the cornerstone for steady progress continuously improving system construc-and performance evaluation mechanisms for members of the executive management.Procedures tion strengthening execution and ensuring legal and compliant operations.These mechanisms fully leverage the incentive lever mechanism of remuneration dis-

tribution motivating the enthusiasm and creativity of the executive management.Compliance and Internal Control Management System

The Company adopts a performance-oriented approach and benchmarks remuneration

against industry standards in the home appliance sector reasonably determining each Management Structure

executive’s annual income based on their job responsibilities and specific duties. The Com-

pany implements an annual salary system for senior executives with performance evalu-

Remuneration At the management level the Company has established a Compliance and Risk Control Committee and appointed a Chief Compliance

ations conducted based on annual performance contracts.Structure and Officer responsible for studying major compliance issues and reviewing compliance work plans. The Company has set up an office for

Appraisal the Compliance and Risk Control Committee with two full-time compliance management personnel. All of the Company’s first-tier

The Company has developed the Negative List Evaluation Criteria incorporating ESG-re- subsidiaries have appointed Chief Compliance Officers responsible for leading the subsidiaries’ compliance management departments

lated tasks such as safety and environmental protection quality assurance non-compliant and business units in conducting compliance work. Currently the Company’s platform departments and first-tier subsidiaries have all

operations and risk prevention into the negative list for executive performance evalua- appointed Compliance Administrators and Contract Administrators staffed by individuals with strong compliance risk awareness and a

tions deducting points as necessary. deep understanding of business operations driving the compliance management team to deepen and expand its reach.Meanwhile the Company has appointed two dedicated legal affairs personnel and engaged a third-party law firm as its standing legal

counsel to provide professional support including contract review legal training and legal consultation. This ensures the full imple-

mentation of the 'organization responsibilities and personnel' framework for compliance management.Related-party Transaction Management Board of Directors at the

decision-making level

The Company has established the Related Party Transaction Management System clarifying the responsibilities of departments the Management at the

scope of related party transaction management internal controls and external disclosure requirements. Ensures fair pricing of related executive level

party transactions compliance with approval processes and timely information disclosure.Compliance and Risk Control

Committee Chief Compliance Officer

Execution Level

Indicators and Goals

Company Level Subsidiary Level

Establishment of the Office of the Com- Appointment of a Chief Compliance

The Company continues to focus on building a modern compliant and efficient governance system strengthening top-level design pliance and Risk Control Committee Officer

and responsibility coordination ensuring stable operations. In 2025 the Company experienced no major governance deficiencies or

violations of laws and regulations and achieved its pre-set annual goals.Dedicated compliance man-

agement personnel Legal affairs personnel Compliance officers Contract administrators31 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 32

Management Systems Compliance Training and Cultural Development

The Company has established the Basic Compliance and Risk Control Management System and various business management sys- The Company places great importance on build-

tems forming a “1+N” compliance and risk control management system that integrates the basic compliance management system ing a compliance culture. In 2025 the Companywith specific business management systems. The Company integrates compliance management requirements into its regulations organized “Compliance System Standards andrules and business processes organizing periodic comprehensive reviews of internal controls risk and compliance management Compliance Position Duty Performance Train-systems continuously improving the system framework and strengthening enforcement of these systems. ing” with over 110 participants attending ons-

ite. The Company also held one overseas busi-

ness compliance risk management seminar for

2025 its overseas subsidiaries to promote the sharing

of compliance risk response experiences. The

the Company’s functional departments Optimized Company organized 8 compliance training ses-

sions for the management team.

85 Compliance System Standards and Compliance Position Duty Performance Trainingrevised and improved systems 63 sales management policies for overseas subsidiaries.

Comprehensive Risk Management

Optimizing the “Three Lists” Management Risk Management Process

In 2025 the Company used the “Three Lists” as a tool to promote deep integration of “business and regulations” requiring each func- The Company has established mechanisms for risk identification monitoring and response requiring each unit to create a Risk Identi-

tional department to embed compliance management into all aspects of business management ensuring compliance requirements fication List and conduct dynamic assessments of risks adjusting response measures in real-time based on changes in risk conditions.are fully integrated into business management.Content of the “Three-List” System 01 Risk 02 Risk Risk Identification Assessment 03 ResponsePrepare the “Compliance Risk Iden- Each unit is responsible for The Company has estab- In the case of major risks the responsible unit prompt-tification List”: requiring each unit to identifying compliance risks lished "P/C Risk Evaluation ly reports to the compliance management department.regularly identify risks. in its respective areas and Criteria" to identify and as- During the response process to major risks the business

creating a Risk Identifica- sess major risks. function departments collaborate with the responsible

tion List. units to monitor the progress of significant risks.Prepare the “Key Process Control List”: three-list Prepare the “Key Position Compliancestrengthening compliance management for Responsibility List”: strengthening com- ESG Risk Management

key processes. pliance management in key areas.The Company has established an ESG risk management mechanism involving the Board of Directors. The ESG Management Committee

of the Board participates in ESG risk management conducting analysis and evaluation of ESG risks and opportunities and providing

overall supervision. Additionally the Company has integrated ESG risk management into the overall risk management system identi-

fying assessing and responding to ESG-related risks through a systematic process ensuring sustainable development while keeping

risks under control.Strengthening Compliance Reviews At the corporate level the Company has established a coordination mechanism between functional departments and subsidiaries

following ISO international standards. Based on actual conditions the Company regularly conducts ESG risk identification and assess-

To further consolidate and enhance the Company’s compliance management in 2025 the Company’s platform departments devel- ment in key areas such as supply chain security compliance labor management anti-corruption environmental protection climate

oped the Special Action Plan for the “Year of Deepening Compliance Management” promoting the implementation of 41 compliance change product quality corporate governance and occupational health and safety. Targeted control measures are formulated and a

management measures fulfilling compliance review responsibilities managing major risks and preventing and mitigating operational unified ESG risk identification and management list is established achieving normalized and standardized management of ESG risks.risks. Specific identification and assessment results are detailed in the relevant "Strategy" section.33 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 34

Deepening the “Three Lines of Defense” Control 2025

The Company raised Supervised the completion of And

The Company continues to deepen the “Three Lines of Defense” in risk management continuously strengthening the implementation

of compliance risk identification assessment and prevention efforts. audit rectification remain in

The Company conducted 474 requirements 372 rectifications 102 progress

The First Line of Defense special

Business and functional departments bear the primary responsibility for compliance and risk control 1852 audits A total of Of which

management

The Second Line of Defense audit management sug-

Three The Compliance Management Department leads and is responsible for compliance and risk control 215 gestions were made 198 were adopted

Lines of management at its level.Defense

The Third Line of Defense

The Company’s Discipline Inspection Office Audit Department and other departments supervise and

evaluate the implementation of compliance requirements investigate violations and carry out ac- Legal Management

countability according to regulations.Legal Management System

Major Risk Ledger The Company has established a legal management system centered around the Legal Affairs Management System with supporting

specialized systems such as the Contract Management Measures and Overdue Accounts Receivable Legal Recovery System. It hasformed a management structure with “General Counsel - Legal Affairs Department and External Counsel Team - Business Depart-The Company has established a Major Risk Ledger collaborating to analyze and respond to major risks across departments and ments” where the General Counsel oversees legal affairs and participates in major decisions the legal team handles specific man-

subsidiaries. In 2025 the Company issued 12 monthly briefs on major risk management covering the credit risk legal risk market agement and execution external lawyers provide professional support and business departments collaborate to implement legal

risk and other major risks faced by 10 key entities within the Company and the consumer business scope providing information and management requirements forming an efficient and coordinated management framework.reference for decision-making on major risk responses by the management.Legal Risk Management MechanismStrengthening Audit and Legal Management The Company has established a full-cycle legal risk control mechanism forming a closed-loop process of “pre-event identification andassessment - in-process dynamic control - post-event review and improvement”.Audit Management

Pre-Event During the Process After the Event

The Company conducts independent and objective supervision and evaluation comprehen- During the reporting period Through contract management By organizing self-checks spe- The Company carries out spe-

sively reviewing the corporate governance internal controls processes compliance and system reviews and other meth- cial inspections and other routine cial “case-based improvement”

cultural systems in-depth identifying major risk hazards and safeguarding the Company’s ods potential legal risks are methods the Company dynami- actions conducting in-depth

high-quality development. In 2025 the Company revised and issued the Procurement Price systematically identified and sci- cally monitors legal risks during reviews of litigation/arbitration

Comparison Audit Management Measures and Internal Audit Rectification Management Sys- entifically assessed proactively business operations strengthens cases summarizing lessons

tem embedding audit models into key risk points in business processes through the smart There was preventing risks and hidden dan- collaboration between business learned optimizing manage-

risk early-warning system. A “pre-warning - in-process control - post-event closure” full-pro- no change gers. At the same time the Com- and legal departments and ad- ment processes and continu-cess management mechanism was established to improve the timeliness of risk identification pany implements digital and re- dresses issues promptly. ously reducing the likelihood of

and response.in the auditing firm fined management throughout the future risks.In 2025 the Company conducted 1852 special audits achieving comprehensive audit cover- entire lifecycle of contracts includ-

age of its business units and key economic areas. The Company raised 474 audit rectification ing drafting signing performance

requirements supervised the completion of 372 rectifications and 102 remain in progress. A and archiving improving contract

total of 215 audit management suggestions were made of which 198 were adopted effectively management efficiency and risk

promoting the improvement of compliance operations and management standards. control capabilities.35 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 36

Adherence to Ethical Business Practices Anti-corruption Risk Identification and Control

Sichuan Changhong always upholds integrity and honest business practices internalizing anti-bribery and anti-corruption The Company conducts routine annual identification of major corruption-related risks including those in operations management invest-

as core elements of its corporate culture. The Company firmly opposes any form of monopoly and unfair competition actively ment and M&A financial management procurement and sales management engineering construction fixed asset investment risk man-

maintaining a healthy and orderly market environment. agement and audit rectification. In 2025 the Company carried out integrity risk screening for positions across functional departments and

subsidiaries established a risk identification list and formulated specific measures for integrity risk prevention.Anti-bribery and Anti-corruption Whistleblowing Mechanism and Whistleblower Protection

The Company has set up a whistleblowing hotline and mailbox ensuring that whistleblowers can submit information safely and conveniently

The Company strengthens its institutional framework enhances education for all employees and deepens its supervision mechanisms

either anonymously or with their real names. Every lead is investigated promptly thoroughly and fairly while protecting the legal rights of

adhering to a “zero-tolerance” policy toward corruption. It continuously improves reporting investigation and accountability mecha-

the individuals involved.nisms to ensure fairness and integrity in business transactions.Public whistleblow-

Governance The Company has built an integrated “online + offline” reporting network embedding the supervision ing Channels

phone number (0816-2412388) and supervision email (chjwjb@changhong.com) into contract docu-

ments and disclosing them on recruitment bidding and other pages. A total of 95 whistleblowing boxes

The Company continuously improves its integrity risk prevention management system and has established systems such as the Imple- were set up in densely populated areas such as office spaces and factory areas across 45 subsidiaries

mentation Measures for Accountability for Violations in Business Operations and Investment Several Provisions on Integrity Conduct both in Mianyang and other locations providing accessible reporting channels to external stakeholders.for Leading Cadres at All Levels Measures for the Management of Petitions and Whistleblowing and Guidelines for the Integrity Risk

Prevention Management System. The leader in charge of the Company is responsible for anti-corruption and anti-bribery matters.A special responsible office has been established as the coordinating and executing body for anti-corruption issues. Additionally a Whistleblower The Company has formulated the Measures for the Management of Petitions and Whistleblowing which

secondary risk control matrix is set up in operational platforms and business groups creating a dual-layer governance structure of Protection clearly define the protection measures for whistleblowers and penalties for disclosing whistleblower

“headquarters control + business cluster linkage”. information. This includes strict protection of whistleblower information and reporting content prohib-

iting the disclosure or transfer of whistleblowing materials and whistleblower information and ensuring

Strategy the confidentiality of the whistleblower’s identity throughout the investigation process. Violations such

as information leakage or retaliating against whistleblowers are subject to strict disciplinary action to

Risk Financial Impact Impact effectively protect the legal rights of whistleblowers.Mitigation Measures

Description Impact Duration Level

Property losses Revenue Short term Strengthen the building of integrity risk prevention and control

(decline) Whistleblowing Handling Processcaused by commercial Medium High system clarify the risk control responsibilities of each unit and

bribery and corruption Assets term enhance integrity awareness and risk control capabilities.(decline) Multiple channels are used to receive whistleblowing leads. These leads are screened to determine whether

01 Lead they fall within the scope of the disciplinary inspection. Non-relevant leads are either transferred to relevant Reception

Opportunity De- Financial Impact Impact departments or communicated back to the whistleblower.Mitigation Measures

scription Impact Duration Level

02 Registration and Filing The leads received are assigned a unique number registered and filed under centralized management.

Enhance corporate im- Medium

Revenue term Increase publicity of corporate integrity culture to showcase a age to attract premium High Leads are handled according to the management level. The Company directly handles leads involving key

increase positive corporate image. Tiered

clients and partners 03 management personnel while grassroots-level leads are assigned for handling with results reported for Long term Handling

record and cases without substantial evidence are closed after review.Real-name reports are prioritized for handling with feedback provided and rewards granted in accordance

Categorized

Impact Risk and Opportunity Management 04 with relevant regulations. Anonymous reports are not subject to identity verification unless authorized by Handling

higher management.Strengthening Supervision and Management

Repeated unsubstantiated malicious or mistaken reports as well as reports focusing on specific units are

05 Result classified for processing with false claims being clarified malicious accusations leading to accountability Processing

The Company promotes the implementation of the dual responsibilities of a single position checklist system for leadership members and mistaken reports addressed through education.strengthens grassroots discipline inspection guidance uses “learning through doing” to guide subsidiary discipline inspection work and

improve the“multi-dimensional integration” coordination mechanism among discipline inspection auditing and other departments. A joint 06 Closure of After completing the investigation and handling all records are retained and archived with strict confidenti-the Case

meeting joint investigation and accountability mechanism has been established to build a multi-dimensional risk prevention system. ality management requirements adhered to throughout the process.37 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 38

Anti-bribery and Anti-corruption Training Antitrust and Fair CompetitionThe Company has taken multiple measures including “leadership-led integrity lectures targeted and tiered measures and deepening theeffectiveness of warning education” to carry out anti-corruption education and strengthen the ideological defense system. The Company strictly adheres to the Anti-Monopoly Law of the People’s Republic of China the Anti-Unfair Competition Law of the Peo-

ple’s Republic of China and other relevant laws and regulations establishing a fair competition management system that covers the

entire business chain. The Company’s General Management Department is responsible for coordinating and managing the Company’s

anti-monopoly and fair competition matters. During the reporting period the Company did not engage in any unfair competition and

there were no major internal control deficiencies or significant non-compliance issues.

2025

The Chairman held integrity talks with over 140 newly promoted and young cadres.During the reporting period

The Discipline Inspection Secretary conducted “three briefings” talks with 3 newly appointed principal leaders and group talks

with 35 newly promoted cadres.Organized 7 integrity training sessions for new employees covering over 1500 participants. No unfair competition acts occurred No material weaknesses in internal control

Conducted targeted integrity education for 18 young cadres over 150 key cadres and 53 newly promoted cadres.No significant non-compliance issues

Supplier Anti-corruption Management In 2025 the Company held one training session on the “Anti-Monopoly and Anti-Unfair Competition Laws” with over 80 employees

covering heads of various business areas across the Company further strengthening employees’ awareness and ability to prevent legal

risks. At the same time the Company’s subsidiaries in accordance with their industry characteristics have formulated anti-monopoly

The Company takes two actions in addressing violations by suppliers and business partners: first placing them on a blacklist and ending and fair competition measures to prevent monopolistic behavior.cooperation; second for those suspected of bribery or harming the Company’s interests it seeks economic compensation in accordance with

contractual provisions and where criminal conduct is involved pursues legal liability.

081 Group

Metrics and targets The department organized all members to study the Anti-Monopoly Law and other industry-specific anti-monopoly regula-

tions and pricing is done strictly according to the Company’s pricing system after being calculated by the Pricing Center. For

external sales contracts and cooperation agreements a Sales Contract Review Form or Legal Document Approval Form must

The Company maintains a strong anti-corruption stance adhering to a zero-tolerance full-coverage and no-exemption policy. We focus on be initiated. The documents shall be reviewed by the Asset and Finance Department and the Legal Department before sealing

key areas and critical processes involving concentrated authority capital and abundant resources and conducts in-depth investigations into to ensure that no anti-competitive clauses are included.emerging and concealed forms of corruption. In 2025 the Company achieved its annual goal for the “Anti-corruption” initiative.Changhong Hongxin

Targets for

Indicators Progress in Reporting Period

2025 In line with the characteristics of the software industry The Company focuses on identifying potential anti-competitive agree-

ments including whether competitors have entered into price-fixing or market allocation agreements as well as whether

Percentage of directors who received anti-bribery and anti-corruption training 100% Completed there are behaviors involving the abuse of dominant positions to force partners to accept unreasonable conditions with a focus

on preventing antitrust risks such as monopolistic agreements and abuse of market dominance.Percentage of management who received anti-bribery and anti-corruption training 100% Completed

Coverage rate of warning education 100% Completed

Training coverage rate for middle management new employees and key 100% Completed

position employees

Whistleblowing handling rate 100% Completed39 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 40

Strengthening Investor Relations and Information Disclosure Practices

On July 2 2025 the Company in collabo-

Sichuan Changhong responds promptly to investor concerns communicates the Company’s strategy and ESG practices ration with Changjiang Securities hostedoptimizes the shareholder rights protection mechanism and is committed to building a long-term stable and trust-based the “I Am a Shareholder – Investors Visitinvestor relations ecosystem. Sichuan Changhong” event. Over 20 in-

vestors visited the Changhong Technology

Museum and the Smart Manufacturing

Industrial Park engaging in in-depth dis-

cussions with the Company’s senior man-

agement. The event facilitated smooth

Investor Relations Management communication channels with investors

and effectively conveyed the Company’s

value.In 2025 in accordance with the latest regulatory rules the Company revised the Sichuan Changhong Investor Relations Management

Measures clarifying that the Chairman is the primary person responsible for investor relations management the Board Secretary

is the main responsible person and the Board Office serves as the functional department for investor relations management. The

Company has appointed an IR Officer responsible for daily management of investor relations (IR) organizing IR activities and using a

combination of online and offline interactive methods to manage investor relations responding promptly to investor requests.Information Disclosure Management

2025: The Company has established a clear and standardized information disclosure management hierarchy. The Chairman is the pri-

mary person responsible for the Company’s information disclosure. The Board Secretary coordinates and oversees the process

256 253 3 while the Board Office organizes and implements daily disclosure work with a dedicated team handling execution. This structure ensures a clear and efficient information disclosure management system.Answered investor Responded to in- Held performance briefing

The Company strictly complies with relevant securities market laws and regulations. During the reporting period the Company

hotline calls quiries on the Shanghai Stock sessions throughout the year

revised its Information Disclosure Management System Information Disclosure Deferral and Exemption Management System

Exchange E-interaction platform

Major Information Internal Reporting System Insider Information Registrant Management System and External Information

achieving a 100% response rate

User Management System. Through the preparation and release of quarterly semi-annual annual and ESG reports the Com-

pany ensures systematic timely accurate and complete disclosure of business information in compliance with all disclosure

5 19 217 requirements for listed companies.Held institutional investor Participated in investor A total of investors have been

research meetings roadshow events in total engaged in in-depth communication.

2025:2025:

A-level information disclosure rating from the Shanghai

Stock Exchange

On June 10 2025 the Company held the 2024 Shanghai Stock Ex- 4 regular reports (excluding report summaries)

change Main Board Smart Home Annual Performance Briefing andChina Securities Journal “Golden Bull Award (2024 Bestthe 2025 Q1 Performance Briefing combining live communicationInformation Disclosure Award)”

video streaming and online text interaction. The senior management

engaged deeply with investors and the event was recognized by the 105 temporary announcementsChina Listed Companies Association as the “2024 Best Practice Casefor Annual Report Performance Briefing”. 46 other reports and documents

the event was recognized by the China Listed CompaniesAssociation as the “2024 Best Practice Case for AnnualReport Performance Briefing”.41 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 42

Shareholder Rights Protection Strategy

In 2025 the Company’s Board of Directors approved the Market Value Management System implemented long-term shareholder

Risk Financial Impact Impact

return plans and continued cash dividends and share repurchases to improve market value management efficiency and maintain the Mitigation Measures

Description Impact Duration Level

stability of the Company’s market value and market confidence.Establish a cross-border tax management system

The implementation of

standardize transfer pricing management prepare

From 2017 to 2025 the Company implemented cash dividends for 9 consecutive calendar years with a total dividend OECD global minimum tax

Dividends contemporaneous documentation and reduce tax ad-

distribution of approximately RMB 1.173 billion. and issues regarding inter- Medium justment risks.national tax transfer pricing Increased

term

fairness have led to risks costs and High Fully leverage tax treaties apply for tax credits or ad-

Long-

On May 8 2025 and June 26 2025 the Board and Shareholders' Meetings approved a share repurchase program of double taxation trans- expenses vance pricing arrangements and avoid double taxation.Repurchase term

with a total repurchase amount between RMB 250 million (inclusive) and RMB 500 million (inclusive). fer pricing adjustments Cooperate with overseas professional tax agencies

and overseas tax audits for

familiarize with local tax regulations and actively re-

cross-border operations.spond to overseas tax audits.In September 2025 the Company launched a shareholder ap-

Shareholder

Appreciation preciation event offering exclusive and high-quality products

Establish a dynamic tax policy tracking mechanism to

and services to all shareholders receiving widespread recogni- assess the impact of policy changes on the Company’s The tightening of VAT incen-

tion from shareholders. tax burden in a timely manner.tive policies for advanced

manufacturing and the Short Optimize business structures and transaction models

cancellation of VAT exemp- term and reasonably utilize other tax incentive policies to

Cost increased High

tions on government bond Medium offset the negative impact of policy adjustments.interest income have led to term Actively participate in policy discussions organized by

increased tax burden and

industry associations and regulatory authorities re-

higher costs.flecting the Company's reasonable demands and pro-

moting policy optimization.Opportunity Financial Impact Impact

Mitigation Measures

Description Impact Duration Level

Relevant incentive policies

Increase investment in smart transformation energy

in the fields of smart trans-

conservation and artificial intelligence industry chains

formation energy conser-

Short and actively apply for relevant tax incentive policies.vation and artificial intelli-

Practicing Compliant Tax Governance gence industries along with

term Standardize the procurement and usage management

Cost Reduction Medium

tax credits for specialized Medium of specialized equipment to ensure compliance with tax

equipment and a decrease term credit eligibility conditions.in VAT rates have effectively

Optimize business models and reasonably utilize the

reduced the Company’s tax

VAT rate reduction policy to reduce turnover tax costs.burden.Governance

The unified national tax col-

lection and management Leveraging the unified tax management environment we

system puts the Company enhance tax compliance levels and management efficien-The Company strictly adheres to the Law of the People’s Republic of China on the Administration of Tax Collection the Enterprise In- Revenue cy.come Tax Law of the People’s Republic of China and the Interim Regulation of the People’s Republic of China on Value-added Tax and in a fair competitive environ- increased Long term Medium

follows the principle of “top management responsibility”. The Company’s top executive is designated as the head of tax management ment which helps stand- By utilizing the fair competitive environment we optimize Cost Reductionwith dedicated tax personnel in each subsidiary implementing a “unified leadership hierarchical management regional coordination ardize tax management and business layout and resource allocation enhancing theand full participation” tax management system. enhance overall competi- Company's overall competitiveness.tiveness.The Company systematically discloses complete tax information in its annual financial reports covering applicable tax rates executed

tax incentive policies and the legal basis for those policies. In its regularly released financial reports the Company also clearly presents

data such as taxes payable continuously enhancing the transparency of its tax information.43 ESG Report 2025 Changhong's long-standing foundation building a solid base for development 44

Risk Impact and Opportunity Management

Tax Risk Management Mechanism

The Company follows the principles of “pre-planning in-process control and post-improvement” for tax management in all business areas

creating a management loop of “identification - assessment - response - improvement” continuously enhancing its tax risk prevention and

control capabilities.Establish a tax risk identification system covering all business areas tax categories and processes using

01 Identification multi-dimensional risk scanning across business lines tax types organizational units and processes con-

tinuously improving the tax risk feature database.

02 Regularly assess the effectiveness of risk management dynamically improving the risk list evaluation Assessment

standards and control processes by incorporating policy updates business changes and case experience.Establishing a normalized risk prevention mechanism with coordinated business finance legal and tax

03 Response functions integrating tax compliance into contract signing transaction execution accounting treatment and

tax declaration and payment processes.

04 Guide each unit in conducting systematic risk inspections to ensure early detection and early warning of Improvement

risks implement classified and tiered assessments of risks and apply differentiated risk control measures.Tax Communication and Training

In 2025

The Company organized 38 internal and exter- totaling approximately 230participants and 3444

nal tax and finance professional training sessions for learning hours online and offline.finance department employees

Indicators and Goals

The Company will continuously strengthen awareness of lawful tax payment standardize tax behavior control tax risks optimize man-

agement efficiency and ensure effective tax risk management lawful policy application and compliance gradually achieving the core

goal of “supporting strategy aiding decision-making serving business creating value and preventing risks”.Green Changhong

advancing low-carbon development 02

Sichuan Changhong closely aligns with the national "dual

carbon" strategy focusing on carbon reduction targets to

manage climate risks and comprehensively strengthening

the foundation for green development. Through practical

actions we demonstrate the environmental responsibility

of a leading manufacturing enterprise and enable high-

quality sustainable development.Actively address climate change 47

Strict environmental compliance 56

Advancing robust green operations 60

Enhancing resource utilization efficiency 61

Developing a green circular economy 73

Strengthening biodiversity protection 74

Respond to the United Nations Sustainable

Development Goals47 ESG Report 2025 Green Changhong advancing low-carbon development 48

Achieve carbon peak

Actively Address Climate Change

Sichuan Changhong actively responds to the national "dual carbon" goals by strengthening climate-related risk identification

and management. We work with stakeholders to build a climate-resilient society and contribute to sustainable development

and ecological progress. Expand self-developed

Achieve carbon

Gradually reduce fos- photovoltaic projects

neutrality within

sil energy consump- and gradually achieve

the enterprise

tion and increase the full rooftop photovoltaic Explore the utilization of

Continuously carry out

proportion of green coverage across indus- other renewable energy

low-carbon technological

electricity usage trial parks by 2030 sources and increase in-

Governance upgrades and equipment vestment in low-carbon

upgrading; promote the technologies such as

development of low-car- energy storage Explore the application of In 2025 the Changhong Holding Group1 established a Carbon Neutrality Strategy Committee led by the Board of Directors with a Car- bon industrial parks and carbon trading and car-

bon Neutrality Promotion Office set up to manage targets and define key tasks. Based on its development needs Sichuan Changhong green factories bon offset mechanisms

strengthens resource coordination and enhances the effectiveness of carbon neutrality practices. In alignment with the objectives

pathways and plans of the Carbon Neutrality Strategy Committee and the Promotion Office we systematically advance energy efficien- 2030 2049

cy improvements and low-carbon transformation.Pathway to Achieve the “Dual Carbon” Goals

Carbon Neutrality Strategy Committee Carbon Neutrality Promotion Office ESG-related Management Entities

Formulate carbon neutrality strategic targets Ensure effective implemen- Identify and assess climate Climate Risk and Opportunity Management Process

and development pathways tation of all decisions and risks and opportunities de-

plans of the Carbon Neutral- velop corresponding meas-

Approve annual carbon neutrality budgets and

ity Strategy Committee tak- ures and be responsible The Group has established a comprehensive process for identifying assessing and responding to climate-related risks and opportuni-

major investments

ing overall responsibility for for implementation tasks ties. First based on the IFRS S2 standard climate risks are categorized into physical risks and transition risks while climate-related

Establish and oversee the Group’s carbon neu- coordination and execution such as carbon accounting opportunities are analyzed in conjunction with the specific characteristics and operations of each business entity. Second climate

trality management system carbon footprinting carbon scenario analyses are conducted using scenarios released by the IPCC and the financial impacts and time horizons of climate risks

trading and carbon certifi- and opportunities under different scenarios are assessed in combination with each business entity’s actual situation. Relevant business

Approve external carbon neutrality statements

cation entities then formulate measures to manage risks and the list of risks and opportunities is monitored and updated regularly ensuring

a systematic approach to managing climate-related risks and opportunities.Strategy

Physical Risk Scenario Analysis

The Company actively implements its climate change response strategy. By referencing the guidelines of the Shanghai Stock Exchange

and the scenario analysis models of the IPCC the Company assesses the impact of climate-related risks and opportunities on its

operations financial performance and sustainable development and continuously optimizes its climate risk management system. Based on the Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) published by the Inter-

governmental Panel on Climate Change (IPCC) the Company selected three representative scenarios for analysis: SSP1 + RCP2.6

(low-emission scenario) SSP2 + RCP4.5 (medium transition scenario) and SSP5 + RCP8.5 (high-emission scenario).Guided by the comprehen- The Company has car- we also advance intelli-

sive green transformation of ried out the development gent upgrading and digital The Company has set dual

economic and social develop- of low-carbon industrial transformation explores carbon goals

ment the Company focuses parks with the goal of pathways for the green

on coordinated reduction of achieving rooftop photo- and low-carbon transition Low-emission scenario: SSP1 + RCP2.6

pollution and carbon emis- voltaic coverage across of its parks and consoli- Achieve carbon peak by 2030

sions to achieve synergistic its parks before 2030. dates the green develop- The SSP1 + RCP2.6 scenario represents a global transition toward sustainable development. Under this scenario global cli-

efficiency gains with priority ment path of its intelligent Carbon neutrality before 2049 mate governance is strengthened and energy transition is actively advanced. Transition risks are relatively high while physical

given to the green low-carbon manufacturing. risks are comparatively low. This scenario is intended to achieve the long-term goals of the Paris Agreement namely to hold

and efficient use of energy. the increase in global average temperature to well below 2°C and pursue efforts to limit it to 1.5°C.

1."Changhong Holding Group" refers to Sichuan Changhong Electronics Holding Group Co. Ltd. the controlling shareholder of the

Company.Carbon Emissions49 ESG Report 2025 Green Changhong advancing low-carbon development 50

Transition Risk and Opportunity Scenario Analysis

Moderate transition scenario: SSP2 + RCP4.5

The SSP2 + RCP4.5 scenario represents a "middle-of-the-road pathway" where global socioeconomic development and cli-

The Company selected three SSP scenarios published by the IPCC—SSP1 SSP2 and SSP5—to conduct scenario analysis of climate

mate policies follow current trends with steady but limited progress in low-carbon transition. Under this scenario companies

transition risks and opportunities. At the same time in light of its own business development external policy changes and industry

face certain transition pressures while maintaining a relatively balanced profile of risks and opportunities.trends the Company identified and assessed transition risks and their potential financial impacts and adopted corresponding response

measures.High-emission scenario: SSP5 + RCP8.5

The SSP5 + RCP8.5 scenario represents a high-growth pathway driven by fossil fuels. Under this scenario companies face lower transition Climate-related transition risks

pressure in the short term but significantly higher long-term physical risks (such as extreme heat and flooding) and policy transition risks Im-

(such as tightening carbon policies and increased carbon tariffs) which may materially affect supply chain stability and operating costs. Im-Financial pact

Risk Category Risk Description and Impact pact Mitigation Measures

Impact Dura-

Level

tion

Under these three scenarios the Company comprehensively identified potential physical risks affecting its production and operation locations * Closely monitor domestic and

over the short medium and long term as well as the associated potential financial impacts. Details are presented in the table below:

Expend- Me- international carbon regulations and

iture dium

T i g h te n i n g Products exported overseas will soon regularly calculate carbon emissions Climate-related physical risks increased term Medi-

carbon tariffs Policy and face policy requirements and restric- data

Impact um to

Financial Impact and regulatory legal risks tions related to carbon tariffs and carbon Advance carbon footprint certification

Risk Category Risk Description and Impact Dura- Mitigation Measures high *

Impact Level requirements footprint.tion Revenue Long optimize low-carbon supply chains

* comprehensively strengthens the (decline) term and develop low-carbon product

construction of its emergency portfolios

The Company’s main production management system establishes Conduct collaborative R&D Cost of low-car- *

sites are located in Mianyang Hefei Increased professional emergency response bon technology monitor government policies strive

Jingdezhen Zhongshan and other re- costs Low-carbon technology development Expend-teams and ensures sufficient research and Technology Long Medi- for relevant funding support and

Sudden flood gions which are prone to river flooding reduced Short and transition require substantial invest- iture

Acute risks Low allocation of emergency supplies. development risks term um tax incentives reduce transition

events and waterlogging during the rainy sea- revenue term ment and long implementation cycles. increased

* carries out flood preparedness in and transfor- costs and promote technological son. Such events may lead to inunda- and asset mation

advance including sewer dredging substitution in phases.tion of factories and hazardous chemi- values

cals resulting in property damage. and risk inspections to enhance its Climate-related Opportunities

emergency response and disaster

Im-

prevention and mitigation capabilities Finan- Im-

Opportu- Opportunity Description pact

The Company operates in areas with Category cial pact Mitigation Measuresnity Impact Dura-

relatively frequent seismic activity. Earth- Increased Impact Leveltion

quakes may result in ruptures or leaks costs * Ensure seismic-resistant structural

Me- design during factory construction. * Persist in building an intelligent Sudden earth- in energy pipelines and storage tanks reduced

Acute risks dium Medium Me-

quake events breakage of power cables and second- revenue * Develop earthquake evacuation route The Company has strengthened low - carbon logistics park and term More cli- its resilience and climate-adaptive dium ary accidents such as fires which could and asset maps and conduct emergency drills. mate-resil- Products and Revenue term Medi- work together with upstream and

lead to production stoppages personnel values supply chain capabilities under ex-ient supply services increased um downstream supply chain partners

casualties and property losses. treme weather or disaster condi-chain Long to achieve carbon reduction and

* Secure generator resources in tions. term decarbonization goals.advance build the necessary technical * Actively explore and apply new

capacity and closely monitor weather

With the spread of green and technologies and processes to improve

Prolonged Prolonged heat and drought conditions Expend- forecasts to stay informed of extreme low-carbon concepts and evolving Me-

Chronic Long resource efficiency and reduce energy

heatwaves led to power rationing power outages iture Low weather events. Shifting con- demand for green transition and dium

risk term Revenue Medi- costs.and droughts and water supply disruptions. increased * Install essential water storage facilities sumer pref- Market development customers and the termincreased um

erences public continue to show increasing * Adapt to market demand seize the to stockpile water in advance and Long

demand for green and low-carbon consumption upgrade opportunity

ensure production continuity during term

products and services. of the home appliance industry and

droughts.formulate marketing strategies.51 ESG Report 2025 Green Changhong advancing low-carbon development 52

Impact risk and opportunity management Air conditioning

products

We prioritize energy-saving technologies and eco-design. In new product development we adopt "new technologies new processes

Green transition and development new equipment and new materials" and implement the Management Measures for Restricted Use of Hazardous Substances in ac-

cordance with relevant standards to eliminate hazardous substances at the source. For comparable materials we prioritize green and

high-efficiency components such as high-efficiency rare-earth compressors. In new technologies we replace R410A with the more

environmentally friendly refrigerant R32 reducing global warming potential (GWP) by two-thirds. We continue to advance research on

Green product design natural refrigerants with technologies reaching internationally advanced levels enabling low GWP performance and supporting the

"dual carbon" targets.We integrate environmental considerations into product design promote the adoption of appropriate low-carbon technologies across

subsidiaries improve energy efficiency in production processes and reduce carbon emissions.Television

products

In smart TV optical design we adopt high-gain op-

tical films achieving over 18% improvement in en-

ergy efficiency compared with traditional solutions.In addition LED modules fully adopt flip-chip tech-

nology reducing power density per unit area through

optimized chip structures and improving electro-op-

tical conversion efficiency by more than 12%. The

integration of these technologies delivers over 30%

improvement in overall energy efficiency significantly

reduces power consumption enables products to ex- Washing machine

ceed Level 1 energy efficiency standards. products

Guided by green design principles we leverage AI to analyze fabric weight and type automatically optimize washing modes and

effectively reduce water and energy consumption. During drying we accurately detect fabric moisture and intelligently adjust time

and temperature to avoid energy waste. We also adopt high-efficiency and durable inverter and direct-drive motors to improve control

Refrigerator precision and spin speed shorten operating time and further reduce electricity consumption comprehensively advancing green and

products energy-efficient performance.We advance energy-saving technologies across platform products and have

launched multi-door models exceeding China’s Grade 1 energy efficiency

standard by 30%. We completed pre-research development and validation of

multi-door and side-by-side refrigerator products meeting European Class A

and A-20% energy efficiency standards and showcased them at the 2025 IFA

in Germany. We optimize heat and mass transfer in frost-free refrigerators and

improve drainage pipe sealing structures to reduce overall energy consump-

tion.53 ESG Report 2025 Green Changhong advancing low-carbon development 54

Green energy use Changhong Jiahua

Our primary energy sources include purchased electricity gasoline diesel natural gas and purchased heat with purchased electricity Through LED lighting upgrades in warehouses annual electricity savings reach 18 kWh per square meter reducing CO2 emissions

being the dominant source. We continue to increase the share of green electricity in purchased power expand in-house photovoltaic by 10.5 kg. With a total warehouse area of 30802 square meters this results in annual savings of 550000 kWh and a reduction of

generation and utilization and build a green energy framework. 320 tonnes of CO2. In logistics operations 23 urban delivery vehicles across warehouses in Beijing Shanghai Chengdu Xi’an and

Wuhan have been upgraded to new energy vehicles.In 2025 green electricity including photovoltaic power accounted for 121.1178 million kWh of purchased electricity while our self-gen-

erated photovoltaic power reached 4.3759 million kWh.Green Construction

Changhong Air Conditioning

The Hongyuan heat pump project implemented rooftop photovoltaic generation across the industrial park which was officially We promote energy efficiency retrofits of existing buildings in line with the national "Green Building Evaluation Standard" and the "Si-

connected to the grid on November 24 2025. In December total photovoltaic generation reached approximately 204800 kWh chuan Passive Ultra-Low Energy Building Technical Standard" advancing energy-efficient construction and lighting solutions across

with 165700 kWh consumed on-site representing an actual utilization rate of 80% and accounting for 40% of total electricity our factories and warehouses.consumption.Changhong Precision

Green transformation

Changhong Precision the electronic manufacturing facility currently operates 4530 units of 16W LED lights for 24-hour illu-

mination with hourly electricity consumption of 72.48 kWh. After evaluating key parameters such as power illuminance and

We advance low-carbon technological innovation by upgrading equipment and optimizing processes across production units signifi-

color temperature we introduced new 8W energy-saving LED lights that maintain the same illuminance (1600 lm) and color

cantly reducing energy consumption in manufacturing operations.temperature (6500 K) with lower power consumption. Following the upgrade annual electricity savings reached 269915 kWh

reducing carbon emissions by 42.21tonnes.Changhong Moulding

We replaced hydraulic storage motors with electric storage motors reducing energy conversion steps and improving energy Changhong Huayi

efficiency. During the year 54 injection molding machines were retrofitted with electric storage systems delivering total elec-

tricity savings of 2.8498 million kWh.By integrating smart gateways with a cloud platform we enable single-light and multi-light network sensing remote control

data collection and statistical analysis. Leveraging digital systems we apply big data and AI to analyze operational data en-

hancing energy-saving potential in workshop lighting and improving intelligent management while ensuring normal produc-

Changhong Electronic Components tion and reducing maintenance costs. Estimated annual electricity savings are 150000kWh with carbon emissions reduced

by 88.31 tonnes.By upgrading winding processes with fully automated winding machines and phasing out outdated equipmentwe expect to

reduce energy consumption and cut carbon emissions by 14.28 tonnes.

081 Group

Green Office Operations

In technology upgrades we prioritize high-efficiency energy-saving production equipment and adopt environmentally friendly

solutions such as using energy-efficient air compressors as power sources significantly reducing baseline energy consump-

tion in production. We actively promote green office practices including paperless workflows energy-efficient equipment optimized air conditioning

settings and double-sided printing fostering a comprehensive green workplace culture. Looking ahead we will establish employee

"green credit" carbon accounts covering daily scenarios such as commuting and office consumables and link these credits to perfor-

mance to incentivize low-carbon behavior.Green logistics

We continue to promote energy-efficient warehouse upgrades and the electrification of logistics vehicles. By introducing a TMS (Trans-

portation Management System) we optimize transport routes to reduce fuel consumption and carbon emissions.55 ESG Report 2025 Green Changhong advancing low-carbon development 56

Green (Zero-Carbon) Factory Development Greenhouse Gas Emissions Data for the Past Three Years

The Company has continuously carried out green factory certification for many consecutive years and achieved outstanding results.In 2025 Indicators Unit 2023 2024 2025

The company has continuously carried out green factory certification for many consecutive years and achieved outstanding results. In 2025 we

Scope 1 Greenhouse Gas

added one national-level green factory Changhong NeoNet Technologies and three Sichuan provincial-level green factories (Sichuan Chang- tCO2e 33649.31 43190.73 46424.36Emissions

hong Changhong Air Conditioning and Changhong Electronic Components) demonstrating our leading capabilities in green manufacturing

Scope 2 Greenhouse Gas

systems low-carbon technology application and sustainable development. In addition Changhong Huayi received the “Zero-Carbon Factory” tCO e 201351.39 216907.31 217828.59

Emissions 2

certification from SGS becoming the first company in China’s compressor industry to obtain this certification.Total Greenhouse Gas

tCO e 235000.70 260098.03 264252.95

Emissions 2

Product carbon footprint accounting

Greenhouse Gas Emis- Kg CO2e / RMB 10000 43.21 39.77 38.36

sions Intensity output value

The Group continues to carry out carbon footprint and greenhouse gas accounting. In 2025 the Group and its subsidiaries including Chang-

hong China Smart Dispaly Sichuan Changhong Network Technology Changhong Air Conditioner and Changhong Electronic Components

have completed greenhouse gas accounting and product carbon footprint assessment reports. Going forward the Group will promote product Strict environmental compliance

carbon footprint certification and gradually strengthen product-level carbon management.Sichuan Changhong strictly complies with national and local environmental laws and regulations continuously strengthens internal

Green Power Transactions environmental policies and standards and upholds an ecological priority approach to support regional environmental quality and sus-

tainable operations. We have joined the Mianyang Ecological Civilization and Green Development Promotion Association as a member.The Group has conducted green power transactions for several consecutive years. In 2025 the Company and its subsidiaries—including

Changhong Meiling Changhong Huayi Guangdong Changhong and Changhong Precision—completed a total of 121.1178 million kWh of

green power transactions.Environmental Management

The Company has established an Environmental Protection Committee to oversee major environmental matters with its office under the

Safety and Environmental Protection Department serving as the executive body responsible for implementing environmental initiatives and

daily operations. During the reporting period we continuously improved our ISO 14001 environmental management system conducting

annual surveillance or recertification audits. Currently 27 entities maintain valid environmental management system certifications.Responsibilities of the Environmental Protection Committee

Implement national local and supervisory authorities’ policies requirements and regulations on environmental protection;

establish and improve the environmental protection responsibility system regulatory framework and operational mechanisms.Indicators and Goals Organize the formulation of environmental protection targets medium- and long-term plans and annual plans and su-

pervise their implementation.Establish and improve the environmental protection responsibility system and its assessment mechanism and conduct

We have established phased management targets for addressing climate change and actively advanced their implementation during

inspection supervision and evaluation of environmental protection work across all units.the reporting period.Make decisions on and supervise the implementation of major matters such as major environmental governance projects

rectification of major environmental risks and hazards and budgets for significant environmental protection expenditures.Progress in Reporting Progress Toward Target

Indicators Objectives

Period Achievement

Taking 2021 as the base year the Progress During the

Indicators Targets for 2025

Company aims to reduce the green- Reporting Period

Greenhouse gas emission Decreased by 29.69% com-

house gas emission intensity (green- Achieved ahead of schedule

intensity pared to the base year Environmental

house gas emissions per RMB 10000 No major environmental incidents occurred. Completedincidents

output value) by 10% by 2030 All pollutants generated by pollutant-discharging entities were discharged in com-

Completed

Taking 2021 as the base year the pliance with standards and no environmental violations occurred.Company aims to reduce the energy Environmental 100% compliance rate for the disposal of hazardous waste. Completed

Energy consumption in- Decreased by 23.59% com-

consumption intensity (energy con- Achieved ahead of schedule compliance

tensity pared with the baseline year No penalties imposed by environmental regulatory authorities due to environmental incidents. Completed

sumption per RMB 10000 output val- The environmental impact assessment rate and the “three simultaneous” implementa-

ue) by 10% by 2030 Completedtion rate for new expanded and renovated construction projects both reached 100%.57 ESG Report 2025 Green Changhong advancing low-carbon development 58

Environmental risk management process 2025

Each department analyzes macro-level and internal environmental factors combined with stakehold- A total of 1040 environmen- Of which 1027 13 remain under ongoing

er requirements to identify respective risks and opportunities and complete the departmental Envi-

Risk Identification ronmental Risks and Opportunities Identification and Evaluation Form. tal risks were identified have been rectified remediation

The Safety and Environmental Protection Department consolidates and analyzes such forms to es-

tablish the company-level Environmental Risks and Opportunities Identification and Evaluation Form.We establish evaluation criteria for environmental risks and opportunities with each department pre- Environmental emergency drills

paring a "Register of Significant Environmental Risks and Opportunities".Risk Assessment

The Safety and Environmental Protection Department conducted summary analysis and compiled the

We comply with the "National Emergency Response Plan for Environmental Incidents" and adopt a proactive and science-based ap-

Company-level List of Major Environmental Risks and Opportunities.proach to build a comprehensive environmental emergency management system covering contingency planning resource prepared-

ness personnel training and drills.Each department adopts appropriate response or mitigation measures—such as eliminating avoid-

Risk Management and

ing reducing or accepting risks—for the material environmental risks and opportunities identified in

Control

the assessment.Each department must conduct at least one annual review of major environmental risks and oppor-

Risk assessment tunities to verify effectiveness.and monitoring We conduct regular monitoring of environmental factors to promptly re-identify and reassess relevant

risks and opportunities.Environmental Risk Monitoring

Changhong Air Conditioner organized an emergency drill for hazardous chemicals incidents.We strictly follow the "Technical Guidelines for Self-Monitoring of Pollutant Discharging During the reporting period

Units – General Principles" and relevant sector-specific guidelines and develop and imple-

ment annual environmental monitoring plans in line with discharge permit requirements. environmental monitoring coverage

During the reporting period environmental monitoring coverage reached 100%. All units reached

completed monitoring tasks as planned and year-end verification confirmed that all indi-

cators met required standards. 100%

Environmental risk identification

In accordance with applicable laws and operational needs we established and implemented the "Environmental Risk Identification and

Management System" defining departmental and role-based responsibilities and promoting a shift toward preventive environmental

management and proactive risk control.

081 Group organized emergency drills for hazardous chemical leakage incidents.59 ESG Report 2025 Green Changhong advancing low-carbon development 60

Advancing robust green operations

Case: Changhong Battery strengthened emergency response capabilities for excessive heavy metal wastewater discharge.Sichuan Changhong strictly controls emissions of air pollutants wastewater and noise leveraging advanced treatment tech-

In 2025 Changhong Battery conducted target-

nologies and real-time monitoring systems to ensure all discharge indicators meet or exceed regulatory standards.ed emergency drills and training for incidents

involving excessive heavy metal wastewater

monitoring data aiming to effectively prevent

control and mitigate environmental accidents

and enhance emergency response capabilities.Through these drills wastewater treatment per- Pollutant emissions

sonnel improved their environmental awareness

pollution prevention capabilities and emergency

response skills achieving proficiency in emer- We strictly comply with the Environmental Protection Law of the PRC the Water Pollution Prevention and Control Law of the PRC the

gency procedures. Air Pollution Prevention and Control Law of the PRC the Law on the Prevention and Control of Environmental Pollution by Solid Waste

the Law on the Prevention and Control of Radioactive Pollution and the Sichuan Standard for Volatile Organic Compound Emissions

Emergency drill site from Fixed Pollution Sources. We have established the "Pollution Prevention and Control Management Procedures" based on the prin-

ciple of "prevention first combining prevention and control" and built a three-tier control system covering source reduction process

control and end-of-pipe treatment led by the Environmental Committee and the Safety and Environmental Protection Department to

minimize pollution and optimize resource utilization.Environmental Training and Awareness Programs

We conduct environmental awareness and education activities through diverse and innovative approaches promoting environmental Wastewater Management

knowledge and values among all employees to enhance environmental literacy and foster green lifestyles and production practices. In

2025 our environmental protection training programs reached 33758 participants. We continuously improve wastewater treatment facilities enhancing treatment efficien- 2025

cy and reuse rates to ensure ecological and environmental safety. During the reporting

period all wastewater generated by key pollutant-discharging entities was treated to The wastewater discharge compli-

compliant standards at self-built wastewater treatment stations within the plant prem- ance rate reached

ises with no impact on employees or local community residents. 100%

Improving wastewater treatment efficiency

We introduced biological wastewater treatment systems that leverage microbial degradation to efficiently break down pollutants in do-

mestic wastewater significantly reducing key pollutant concentrations achieving substantial annual emission reductions and ensuring

stable compliance of discharged water quality.Changhong Battery organized specialized environmental pro- Zhongshan Changhong organized activities for National Changhong Air Conditioning: Biodegradation systems enhance wastewater treatment efficiency and performance.tection training sessions. Energy Conservation Week and Low-Carbon Day.To enhance wastewater treatment efficiency and re-

gional water quality Changhong Air Conditioning in-

stalled two additional domestic wastewater biodegra-

dation systems based on existing facilities achieving

deep removal of ammonia nitrogen through enhanced

microbial degradation. Following implementation am-

monia nitrogen concentration decreased from 45 mg/L

to 36.2 mg/L with annual emission reductions reach-

Changhong Jiahua held the public welfare campaign "Protect the Ocean Together" on World Oceans Day promoting beach ing 3.8 tonnes. Discharged water consistently met

waste sorting practices and encouraging public participation with approximately 100 participants on-site. Following the standards reducing environmental impact and provid-

event beach cleanup activities were conducted collecting approximately 15 kg of waste including both recyclable and ing a replicable upgrade pathway for similar industrial

non-recyclable materials. parks. Changhong Air Conditioning wastewater biodegradation system61 ESG Report 2025 Green Changhong advancing low-carbon development 62

Improving wastewater reuse rate Source Reduction

We apply efficient pre-treatment processes including chemical precipitation and coagulation filtration to progressively purify waste- We optimize production processes and adopt low-emission technologies such as promoting the replacement of low-VOC raw materi-

water. als; upgrade processes such as adopting vacuum degreasing process to replace traditional gas-based degreasing eliminating waste

gas generation and recovering volatile oil.Changhong Battery: Investment in integrated wastewater treatment systems to increase reuse rates

Process Control

Changhong Battery invested over RMB 16 million to construct an integrated wastewater treatment system for heavy metals

including nickel cadmium silver and zinc with a daily treatment capacity of 2000 tonnes. After pre-treatment through Manage the equipment for waste gas generation in conjunction with the treatment facilities to ensure effective collection of waste gas;

chemical precipitation and coagulation filtration wastewater undergoes advanced treatment using quartz sand activated conduct regular inspections maintenance and replacement of adsorbents (such as activated carbon and filter nets) for the waste gas

carbon and RO reverse osmosis enabling reclaimed water reuse in production. In 2025 288800 tonnes of wastewater were treatment facilities.treated with 142900 tonnes reused achieving an industrial wastewater reuse rate of 49.47%.Changhong China Smart Display

2025

With Welding fumes and organic exhaust gases are centrally collected pre-treated using welding fume purifiers then processed

288800 through activated carbon adsorption and catalytic combustion systems and finally discharged via a 28-meter exhaust stack. Once activated carbon adsorption reaches saturation it is regenerated through thermal air desorption. The desorbed organic tonnes of waste- compounds are directed to a catalytic combustion chamber (using platinum-palladium coated catalysts) for complete decom-

water were treated 142900tonnes reused position enabling cyclic reuse of activated carbon and efficient exhaust gas purification.Achieving an industrial wastewater reuse rate of

49.47 End-of-Pipe Treatment%

Construct waste gas treatment facilities employing a combination of advanced technologies including activated carbon adsorption

(primary/secondary stage) UV photolysis catalytic combustion filter cotton filtration spraying and electrostatic oil fume treatment;

upgrade and transform existing treatment facilities such as increasing the number of activated carbon adsorption stages and intro-

ducing online monitoring systems to improve treatment efficiency.Changhong NeoNet Technologies

Regular wastewater monitoring

We collect emissions using gas hoods and treat welding fumes and VOCs through filtration activated carbon adsorption and

We deploy professional wastewater monitoring equipment and engage third-party institutions for regular sampling and testing to en- catalytic combustion. Fresh air systems are used to ventilate production areas ensuring both fugitive and organized emissions

sure compliant wastewater treatment. at plant boundaries meet regulatory discharge requirements.Changhong Battery

Regular Monitoring

We invested RMB 860000 to install online monitoring systems for cadmium nickel COD and pH with automated monitoring

every two hours and outsourced professional operation and maintenance. Key pollutant discharge units regularly entrust third-party institutions to conduct waste gas testing to ensure compliance with emission

standards. The Company has installed facilities such as eco-friendly air conditioners mechanical ventilation and local exhaust venti-

lation to improve indoor air quality.Waste Gas Management

Changhong Packaging

2025

We monitor and control air emissions in accordance with national and local regulatory The compliance rate for air emissions reached For organic exhaust generated from carton processing printing profile processing and hazardous waste storage we estab-

standards. During the reporting period all air emissions remained within regulatory lished an activated carbon adsorption-based collection and treatment system achieving 100% compliant emissions during

limits and no penalties were imposed by authorities. 100 the reporting period in line with discharge permit requirements.%63 ESG Report 2025 Green Changhong advancing low-carbon development 64

Noise management Waste Disposal

We manage noise generated by production equipment such as air compressors injection molding machines and stamping machines

through integrated measures including source control transmission mitigation and boundary management to ensure compliant noise We strictly comply with the “Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Waste” and the “Admin-emissions. Through comprehensive measures boundary noise levels remain consistently below the Class 3 limits of the "Emission istrative Measures for Hazardous Waste Operation Permits”. We have established the "Solid Waste Management Procedures" and the

Standard for Industrial Enterprises Noise at Boundary" (GB12348-2008). "Hazardous Chemicals Management Procedures" led by the Environmental Committee and the Safety and Environmental Protection

Department. Waste is managed through classification and the 3R principles (reduce reuse recycle) with clear control requirements

across generation classification collection labeling transportation storage and outsourced utilization and disposal.

01 Source control 02 Transmission mitigation 03 Natural attenuation

We prioritize low-noise equipment and We reduce noise propagation through We further reduce boundary noise Solid Waste

install vibration isolation foundations sound insulation in facilities and opti- through distance-based attenuation.such as rubber damping pads. mized layout design.Categorized Management

Changhong Battery The Company clearly classifies solid waste into general industrial solid waste (waste plastics waste steel etc.) and hazardous waste

(waste alcohol waste circuit boards etc.). It set ups dedicated management departments and compliant storage facilities (general solid

We invested RMB 3.89 million to implement noise control measures for plate-forming and machining equipment such as waste warehouse hazardous waste warehouse) implements zoned and labeled management and conducts regular inspections and

presses shearing machines rolling machines and pumps. Measures including sound insulation noise reduction vibration rectifications.control and acoustic barriers ensure compliance with Class 3 limits of GB12348-2008 with ongoing efforts to further enhance

noise control performance.Changhong Minsheng Logistics

Solid waste generated from operations is collected through classified systems with designated sorting bins installed across

the facility to consolidate waste from various collection points. Sorted waste is handled by sanitation authorities with daily

clearance and sorting bins are regularly disinfected. Canteen food waste is collected by staff and transported and treated by

Electromagnetic radiation management licensed service providers.We have established a comprehensive electromagnetic radiation management system covering the full operational process supported

by systematic policies and protective measures.Compliant Disposal

* We obtain licenses for the use of radiation-emitting equipment in accordance with regulations

Compliance man-

and ensure that exempt equipment is properly registered.agement and sys- For general industrial solid waste classified disposal and standardized management are implemented. Recyclable portions are trans-* We establish radiation safety management regulations and dedicated emergency response

tem development ferred through public bidding or similar procedures to qualified recycling enterprises for resource recovery; non-recyclable industrial

plans clearly defining responsibilities and response procedures. waste is entrusted to qualified entities for compliant disposal. Hazardous waste is subject to strict full-process management. Qualified

entities are engaged to carry out comprehensive utilization or harmless disposal and the hazardous waste transfer manifest system is

Source control * We prioritize low-radiation processes and equipment and strengthen routine inspection and rigorously implemented to ensure that all types of waste are handled safely lawfully and in an orderly manner.and operational maintenance.assurance * We ensure long-term stable operation of equipment reducing radiation impact at the source.Changhong Battery

* We implement safety training and assessment for operators and strictly enforce certification-

Personnel and

based employment.workplace safety Storage facilities for general industrial solid waste and hazardous waste are constructed in accordance with regulatory re-* We install radiation warning signage in workplaces and equip facilities with safeguards against

management quirements with strict implementation of zoned storage and labeling-based management. All types of waste generated by

operational errors and accidental exposure. various departments are classified and then centrally transferred to the corresponding storage facilities for standardized tem-

porary storage. During routine operations the competent departments conduct regular supervision and inspections of on-site

* We maintain equipment registers and conduct regular radiation safety inspections and

Monitoring super- storage management. All stored waste is entrusted to qualified entities for compliant and safe disposal.environmental monitoring.vision and contin- * We implement closed-loop remediation for identified risks with complete documentation and

uous improvement

record archiving.65 ESG Report 2025 Green Changhong advancing low-carbon development 66

Resource Recovery We incorporate electronic waste classification collection and disposal requirements into onboarding

Company-wide and ongoing EHS training for all employees. We engage environmental experts to deliver specialized

The Company actively promotes waste-to-resource conversion through physical separation of oil/emulsion-containing metal scraps to management training on pollution risks regulatory requirements and operational standards for electronic waste

achieve solid-liquid separation and material recovery systematic recycling of plastic rejects and molding gates and tender-based sales enhancing employee awareness and practical capabilities.of sorted waste materials to facilitate resource reuse.Changhong Packaging NeoNet Technologies

Contracts are signed with qualified waste recycling and utilization entities to handle the compliant disposal and utilization During the reporting period 137 units of electronic waste including discarded laptops monitors and instruments were

of general industrial solid waste generated during production and operations. During the reporting period the two facilities generated. All data on storage devices were irreversibly destroyed through physical means. The waste was centrally stored

generated 5026.58 tonnes of general solid waste (including waste paper wood plastics EPE scrap metal and sludge). A at designated temporary storage sites within the facility. Quotations were solicited from three legally qualified third-party

total of 5057.71 tonnes were transferred for utilization including 100.91 tonnes carried over from 2024 with 69.78 tonnes providers and a competitive bidding process was conducted via the ISRM "Changhong Smart Supply Chain" platform with the

remaining in inventory. selected qualified bidder awarded the contract for compliant disposal.Digital Management

Hazardous chemicals

Leveraging platforms such as "Zero-Waste Sichuan" the Company has implemented end-to-end digital tracking of solid waste through

its entire lifecycle from generation and temporary storage to final disposal. This system enables online processing of inventory records

and electronic waste transfer manifests. We have established the "Hazardous Chemicals Management Procedures" defining 2025

control requirements across procurement transportation storage use and dispos-

al. We enhance end-to-end management of hazardous waste through IoT integration

and digital labeling continuously improving information-based management across The compliant disposal rate of hazard-

E-waste the lifecycle. ous waste reached

In 2025 the compliant disposal rate of hazardous waste reached 100%. All entities 100%

We implement full lifecycle management of electronic solid waste based on the principles of "reduction resource utilization and harm- subject to municipal and county-level annual hazardous waste assessments met

less treatment". Through source reduction classified collection standardized storage compliant transportation professional disposal compliance requirements.and company-wide management we achieve a closed-loop system. No environmental incidents related to improper electronic waste

disposal occurred during the reporting period.Personnel are required to un-

We maintain lifecycle management records for equipment documenting procurement and usage and derstand chemical properties

Source Reduction conduct regular maintenance and upgrades to extend service life. Obsolete equipment is prioritized Chemicals are stored by category and emergency measures and

for internal reallocation and only scrapped when repair is not feasible.We strictly review supplier We select qualified carriers with segregation supported by respond promptly in accordance

qualifications and obtain safe- and implement emergency appropriate safety conditions and with MSDS to ensure risks are

In key areas generating electronic waste including production sites offices and R&D laboratories we ty technical documentation. response measures. regular inspections. controlled at every stage.Classified collection install dedicated collection containers with clear labeling. Containers are designed to prevent leakage

and damage avoiding secondary pollution.Procurement Transportation Storage Use

We designate dedicated storage areas for electronic waste within our facilities equipped with an-

Standardized storage ti-seepage rainproof sunproof and containment measures along with leak collection systems fire- Hazardous chemicals management procedures

fighting equipment and warning signage.Compliant trans-

Electronic waste transportation is carried out by qualified service providers.portation Enhancing resource utilization efficiency

Sichuan Changhong advances energy-saving upgrades in production and promotes clean energy substitution. We strengthen

Professional We select electronic waste disposal partners through public tendering qualification review and site efficient water use and enhance eco-design recycling and reduction of raw materials to minimize resource consumption

disposal inspections conduct regular reassessments and promptly eliminate non-compliant suppliers. across the full lifecycle.67 ESG Report 2025 Green Changhong advancing low-carbon development 68

Energy Utilization Impact Im-

Financial

Opportunity Description Dura- pact Mitigation Measures

Impact

tion Level

Governance We increase investment in low-carbon technology

Early strategic deployment enables com- *

panies to enhance brand competitiveness Medium R&D optimize product design and materials and

expand into high-value markets effectively Revenue term Me- build a green supply chain.We have established an energy con- mitigate future carbon cost pressures and Increase Long dium * We actively pursue authoritative certifications and

servation and emission reduction build a sustainable long-term profitability term conduct transparent and credible green marketing

task force. Under its guidance we model. to build market trust.implement a three-tier manage-

ment system at the Company en- Company

ergy management department and

team levels. We have developed and

enforced the "Energy Management

Energy Management

Measures" and "Energy Management Impact Risk and Opportunity Management

Assessment Measures" with ongoing

monthly energy reporting mid-year

We actively implement energy conservation and carbon reduction initiatives by upgrading high energy-consuming equipment and re-

evaluations of energy-saving targets Teams newing key energy-use assets to improve efficiency and reduce emissions.and deployment of subsequent action

plans. During the reporting period the

Company obtained certification for its

energy management system. Sichuan Changhong Energy Manage-

ment System Certification Certificate Energy Metering and Monitoring

The Company deploys integrated information systems for water electricity and gas measurement and establishes remote meter

Strategy reading and real-time monitoring systems to promptly detect abnormal energy consumption. It implements three-tier metering man-

agement for high-energy-consumption equipment develops energy conservation incentive/penalty mechanisms and executes daily

supervision and performance evaluation protocols.Impact Im-

Financial

Risk Description Dura- pact Mitigation Measures

Impact

tion Level Energy Inspections and Performance Assessment

* We proactively reserve emergency power generation Regular energy inspections and spot checks were carried out. The energy and utilities operation center organized professional inspec-

Extreme weather events such as prolonged Short tions on a monthly basis conducting strict checks ranging from energy management records to the on-site use of water electricity equipment to respond to unexpected power

heatwaves and droughts may trigger power term and gas.restrictions or outages potentially disrupt- Revenue restrictions.ing production. The intermittency of renew- decreased Me- * We advance the development of distributed

able energy sources such as photovoltaic and costs Long dium photovoltaic and other renewable energy projects

power and limitations in energy storage increased term within our facilities which are integrated with energy

technologies may also affect the continuity of storage systems to enhance power supply self-

energy supply.sufficiency.In 2025 we conducted 298 inspections of energy-consuming units and identified 136 issues including

Under the national "dual carbon" targets pol-

icies on total energy consumption control and * We systematically advance low-carbon projects

carbon emission constraints are becoming in- Cost in- Me- including photovoltaic systems and waste heat 17 management-related issues 32 related to energy waste and 87 safety-related issues. All identified

creasingly stringent. Companies are required creased dium

term recovery to optimize our energy structure in phases.to transition toward low-carbon energy struc- Expend- High * We collaborate with universities and research tures with significantly increased investment iture Long issues have been addressed through closed-loop remediation achieving a 100% rectification rate.in renewable energy substitution and energy institutions to develop energy-saving technologies increased term

efficiency upgrades. Failure to meet regulatory tailored to our operations reducing transition costs.requirements may result in penalties.Three-tier Energy Management System69 ESG Report 2025 Green Changhong advancing low-carbon development 70

Optimizing the energy structure Metrics and targets

We vigorously promote the use of clean energy to drive carbon reduction while continuously upgrading energy-use equipment intro- In 2025 the Company successfully achieved its energy-saving targets for television products. Looking ahead we will promote energy

ducing high-efficiency technologies and phasing out outdated capacity. efficiency across all product categories and develop low-energy product lines.Clean energy utilization Prod- Completion of 2025 Energy-saving

Unit 2025 Energy-saving Targets and Tasks Performance

ucts Targets

Changhong Air Conditioning Changhong Jijia and Changhong China Smart Display

have jointly advanced the electrification of on-site logistics equipment replacing fu-

el-powered forklifts with high-efficiency electric forklifts in phases with a total of 39 Changhong Comprehensive energy consumption per Comprehensive energy consumption

units replaced. Based on estimates electric forklifts reduce fuel consumption and Tele-China Smart 10000 units was less than 4.491 tonnes of per unit: 4.322 tonnes of standard Target achieved

lower carbon emissions by approximately 357.6 tonnes per year. visionDisplay standard coal equivalent. coal equivalent per 10000 units

with a total of lower carbon emissions by approximately

Changhong Air Comprehensive energy consumption per Comprehensive energy consumption

39 357.6 Air Condi- condi- unit will be less than 12.216 tonnes of stand- per unit of 11.19 tce/10000 standard Target achievedtioner tioner ard coal equivalent per 10000 units. setsunits replaced tonnes per year

Electric forklifts

Energy equipment upgrade

Water Resources Utilization

Changhong Jijia facilities introduced a dual regenerative tilting furnace. After the upgrade approximately 30 Nm3 of natural

gas is saved for each tonne of molten aluminum processed. Based on projected orders annual natural gas savings exceed

35000 Nm3 reducing carbon emissions by 75. 8 tonnes and lowering energy costs by approximately RMB 116000 delivering We strictly comply with the Water Law of the People's Republic of China and the Regulations on Water Conservation. We adopt full

combined benefits in energy saving carbon reduction and cost efficiency. lifecycle water management covering "water abstraction use discharge and conservation" as a core principle. Through the implemen-

tation of the "Energy Management and Assessment Measures" and related systems we define and assess annual water-saving targets

prevent water-related risks conduct regular inspections of water-use equipment and pipeline networks promptly address leakage

and advance refined management to improve water efficiency.Water Resource Risk Management Mechanism

We conduct regular water risk identification and management covering water scarcity water quality and policy-related risks.Scarcity risk

We systematically assess water stress at each production and operation location.Water quality risk

We identify risks of raw water quality deterioration caused by upstream pollution extreme weather

events such as floods or operational incidents as well as challenges to meeting production water

quality standards and wastewater discharge requirements.Policy risk

We closely monitor national and local policy developments related to water abstraction permits

Deployment of dual regenerative energy-efficient tilting furnace water efficiency quotas wastewater discharge standards water resource fees and environmental

protection taxes and assess their potential impact on compliance costs and operating models.71 ESG Report 2025 Green Changhong advancing low-carbon development 72

In 2025 we applied the World Resources Institute (WRI) water risk tool to assess water abstraction risks across our major domestic Changhong Packaging

production and operation sites. Based on the results we identified key high-risk indicators and developed targeted adaptation and

mitigation measures.We have established an environmentally compliant treatment system for ink-washing wastewater enabling full recycling

after treatment and achieving "zero" discharge to the external environment with annual water savings of approximately 500

tonnes.Technology upgrades and equipment optimization

Optimized its production processes promoted the renovation and elimination of high-water-consuming equipment and strictly im-

plemented the review of water resources recycling utilization for technology transformation projects to ensure efficient water use. We

update system components and select high-quality compatible parts to ensure leading performance and reliability safeguarding stable

and efficient operations at the source.Changhong Jijia

Changhong Jijia: Through process upgrades to barrel and rack galvanizing lines we save 29900 tonnes of water annually.Major domestic production bases Key high water risk indicators Targeted risk control measures

Establishing a water measurement and monitoring system

Mianyang production base Water stress (high competition for water) We promote water recycling and imple-

untreated connected wastewater and ment equipment upgrades to reduce wa- We have established a water measurement and monitoring system to track and analyze water usage data across the full lifecycle from

Hefei production base poor sanitation conditions ter stress risks. source to end use. Through real-time monitoring of water consumption we promptly identify and investigate abnormal usage ensuring

standardized and controllable water management while improving efficiency and refined management practices.Untreated connected wastewater and We upgrade sanitation infrastructure to

Jingdezhen production base

poor sanitation conditions improve hygiene conditions.Changhong Air Conditioning

Coastal flood risk untreated connected We track water consumption using a three-tier metering system at "municipal supply connections building entry points and

We enhance flood control infrastructure

Zhongshan production base wastewater and poor sanitation condi- process equipment inlets". Abnormal water usage is promptly inspected to ensure consumption aligns with expectations.to mitigate flood risks.tions

Water resource risk management measures

Based on identified water risks and regional differences we implement targeted measures including water conservation reuse and Raw materials

equipment upgrades to effectively mitigate and manage various water-related risks.In 2025 to ensure D (delivery) across Q (quality) C (cost) S (service) and T (technology) we set material completeness as a strict pro-

curement baseline achieving 100% completeness throughout the year. We successfully mitigated supply shortages in refrigerants and

Continuous water recycling and reuse the storage industry ensuring 100% supply for high-risk materials.We conduct strict reviews of raw materials and advance sustainability certification. During the reporting period 100% of raw material

We actively promote the treatment and reuse of industrial wastewater adopting various measures such as sedimentation purification suppliers obtained environmental compliance certification.zero discharge of electroplating wastewater and recycling of glass screen cleaning wastewater to improve the recycling rate of water

resources. We have also established a steam waste heat recovery system to send residual steam back to the boiler reducing fresh

water consumption and promoted energy-saving cooling technology to optimize equipment cooling methods.73 ESG Report 2025 Green Changhong advancing low-carbon development 74

Key measures to ensure material completeness and supply

Sales On-site service Pull Back + Storage Recycling Logistics

Optimizing supply * We introduce high-quality new supply resources and leverage existing advantageous resources. We

Big B Channel

resource allocation eliminate single-source materials and promote standardization of materials such as copper pipes Delivery and installa-E-commerce Delivery and installation KT Channel tion of new machines Changhong MinshengChannel of new machines

speakers and electronic components. Small B Channel Trade-in Used

Machines Self-supporting logistics

Used

Appraisal Machines Third Party Logistics

Strengthening Basic Channel Sinking Channels

Service Provider

market analysis of Owned Channels Sell Old Machines

* Market analysis and outlook reports for key materials are issued on a monthly and quarterly basis. Remove and pull backmaterials Hongchuang Youpin Cooperative logistics Undecycled Products

Products Product Requirements Users External Sales

Lean planning risk * We align supply and demand based on annual planning. * We establish dashboards for delivery

Commissioned dismantling products returned to remanufacturing

management * We conduct daily checks on completeness risks for and inventory alerts.RD and Manufacturing Recycling Recycling Dismantling

electronic materials.Maintaining a sup- Consumer BG Parts and ComponentsChanghong Moulding

ply-demand coordi- * Internally: We coordinate sales R&D production and supply to ensure material completeness. Sichuan

Chang- Changhong Injection

Plastic Deep Processing Waste plastics

nation mechanism Meiling Molded * Externally: We strengthen communication and collaboration to enhance supply-demand relationships. hong Product ... ... Modified plastics Metals etc.Corporate BG Sheet metal

etc.Changhong ... ...Packaging

Commissioned dismantling of scrap and defective products

Circular economy across the full life cycle of Changhong home appliances

Developing a green circular economy

We actively develop a circular economy by establishing full lifecycle systems for recycling dismantling and reuse of house-

hold appliances.Strengthening biodiversity protection

As the principal undertaking entity for the used home appliance recycling segment of the Group’s home appliance business Changhong

Gerun has established more than 1000 used home appliance collection points across China and built the country’s first resource recov-

ery production line for waste display screens. Leveraging proprietary recycling channels and dismantled material supplies it focuses The Company actively supports international initiatives such as the United Nations Convention on Biological Diversity and

on TVs computers mobile phones and tablets to achieve environmentally efficient extraction of rare metals (indium silver etc.) and adheres to the relevant requirements of the China National Biodiversity Conservation Strategy and Action Plan (2023–2030).sustainable regeneration of glass/plastics building a nationally and globally leading demonstration base for advanced display screen It places strong emphasis on the protection of ecosystems and biodiversity with related matters centrally coordinated by the

resource recovery. Environmental Committee. During project siting and construction the Company systematically assesses potential biodiversity

risks and implements appropriate mitigation measures.

2025

We adhere to compliant site selection. All projects are located within industrial parks on designated industrial land

Changhong Gerun has cumulatively dismantled 1.4758 million units of waste electrical appliances. Site compliance avoiding nature reserves scenic areas ecological protection redlines and other environmentally sensitive zones.Projects comply with planning requirements and are not subject to significant environmental constraints.This includes approximately 341100 refrigerators 177900 televisions Construction

We strictly implement measures for dust wastewater and noise control in accordance with environmental impact

360600 325900 270300 environmental assessment requirements. We carry out vegetation restoration and site greening for exposed land and complete management air conditioners washing machines and computers. hardening or revegetation after construction to minimize environmental impact.

Operational pol- After project commissioning we effectively manage and control all types of pollutants to ensure that operations do

2. In 2010 the company initiated the establishment of Changhong Gerun. In 2017 Changhong Gerun came under the control of the lution control not adversely affect the surrounding ecological environment.

company’s controlling shareholder.Innovation-driven

Changhong 03

advancing industrial upgrading

Technology is the foundation of Changhong and innovation

is its hallmark. Sichuan Changhong positions innovation

as its core engine focusing on breakthroughs in key

technologies strengthening product and service quality

and safeguarding data privacy and security while enabling

high-quality industrial upgrading through a comprehensive

innovation framework.Driving Breakthroughs in Core Technologies 77

Strengthening Product and Service Safety and Quality 88

Strengthening Data Privacy Management 96

Respond to the United Nations Sustainable

Development Goals77 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 78

Driving breakthroughs in core technologies Opportunity Financial Impact Impact Mitigation Measures

Description Impact Duration Level

We pursue an innovation-driven development strategy using breakthroughs in core technologies as a key lever. Through a

The widespread adoption of

systematic multi-dimensional approach spanning innovation governance full-category product R&D intelligent manufac-

artificial intelligence and the

turing upgrades and digital transformation we accelerate the efficient commercialization of innovation outcomes and con-

rapid development of relat-

tinuously enhance our core competitiveness. The Company actively deploys relevant technologies

ed industries provide tech-

Revenue Long launches technical capability reserve projects and

nological support for cost High

increased term advances the commercialization and industrial incuba-

reduction and efficiency im-

tion of innovation outcomes.provement. Early strategic

Deepen Innovation-driven Development deployment is expected to

create new growth drivers.We position technological innovation as the core driver of industrial transformation and upgrading. Through a systematic framework

covering governance structures strategic opportunity and risk management end-to-end innovation management and target execu-

tion we build a solid foundation for high-quality development.Impact Risk and Opportunity Management

Governance

Build Innovation Technology Platforms

The Company has formulated the Technological Innovation Management Measures Technological Innovation Incentive Measures and Guide-

lines for R&D Project Management among other systems to clarify the overall strategy organizational support project management prin-ciples and related measures for technological innovation. We have established a robust governance structure for innovation. The technology We are committed to continuously enhancing our innovation capabilities following a dual approach of “independent innovation + col-management function leads innovation initiatives with the Chairman providing oversight while R&D centers are responsible for executing laborative innovation”. We optimize our technology framework deepen research in applied foundational and common technologies ad-

strategic plans and delivering specific research projects. vance product and manufacturing technology development and strengthen our role in enabling and supporting industry development.Strategy

Establish the Advanced Tech- The Group has established an Arti- The Group has established over 20

We recognize the opportunities and challenges brought by technological change. We continuously increase investment in R&D and talent set nology R&D Center to carry ficial Intelligence Laboratory and a industrial support platforms includ-

annual R&D objectives and plans and regularly review track and update implementation progress. We have set a target of over 10% year- out industrial incubation in Cloud Computing and Big Data Re- ing an Innovation Design Center and

on-year growth in R&D investment for the coming year allocating increased investment to product upgrades technology advancement and emerging sectors and for- search Center to strengthen tech- a Smart Home RD Center leverag-

capability reserves. ward-looking research on ap- nical coordination with the Digital ing technical capabilities to enhance

plied basic technologies. Business BG driving research in AI product competitiveness across in-

application scenarios and digital fac- dustries.tory solutions.Risk Financial Impact Impact

Mitigation Measures

Description Impact Duration Level

The Company formulates and dy-

Forward-looking investments in foun- (Note: In February 2026 the “Advanced Technology R&D Center” was renamed the “Advanced Product R&D Center”; the “Artificialnamically updates its technolo-dational and differentiated core technol- Intelligence Laboratory” and the “Cloud Computing and Big Data Research Center” were integrated into the “AI and Digital-Intelligentgy strategy strengthens projectogies may face risks such as delays in Product R&D Center.”)

Cost in- initiation review establishes a

commercialization R&D progress and Medium term Medium

creased stage-gate decision-making and

costs not meeting expectations or fail-

investment mechanism and en-

ure to achieve timely conversion poten-

sures timely loss-cutting where

tially resulting in R&D losses. Standardizing R&D project management

necessary.Our consumer electronics products involve

patents related to audio and video cod- We engage with patent holders to The Company has established a comprehensive RD project management process forming a PDCA cycle that includes goal setting process

ing and decoding as well as digital signal promote cooperation support in- control performance evaluation and continuous improvement. We have issued the “R&D Project Management Guidelines” defining full

Cost in-

transmission standards which may give Medium term Medium dustry-led negotiations to optimize lifecycle standards for project initiation progress control risk management and outcome acceptance to ensure efficient project execution.creased

rise to patent disputes in domestic and in- solutions and maintain dynamic

We standardize R&D management across subsidiaries guiding increased investment and improved output efficiency. We provide foundational

ternational markets potentially affecting cost provisions.R&D support promote systematic cost optimization initiatives among key subsidiaries and conduct comprehensive diagnostics for those with

business operations and profitability.capability gaps proposing improvement plans to enhance the effective utilization of R&D expenditure on technology platforms.79 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 80

Product Innovation Practices And Achievements

*Acceptance decision

*Project initiation decision

We focus on core product innovation priorities and advance breakthroughs in key technologies. All major business segments have achieved

*RD plan review

*Milestone decision technology upgrades and product enhancements with innovation outcomes receiving multiple domestic and international awards strength-

*Project initiation decision *Acceptance decision ening product differentiation and market competitiveness.*Empowerment contract

Product strategy

Market information In 2025 we received multiple prestigious international and domestic innovation awards.Customer feedback RD plan Pre-research Capability reserve stage Empowerment stage

(Direction recommen- stage (if neces- Product Design

Competitive information (market-driven) (application of results)dation) sary)

Technology trendsProd-

uct portfolio We received two iF Design Awards one Red Dot Award and two International CMF Design Awards.Industrialization stage Technological innovation

(commercialization of

Project initiation results)

We received one second prize and one third prize of the Provincial Science and Technology Progress Award and one first

decision

prize of the China Association for the Promotion of Science and Technology Industrialization Award.Strengthening Scientific and Technological Innovation Collaboration

Smart TVs

The Company has built diversified bridges for collaboration in scientific and technological innovation deepened industry-university-research

collaboration and accelerated the commercialization of results. The Company has formed a close industry-university-research collaboration

Focusing on core technologies such as AI voice Generative AI Models Mini LED and RGB Mini LED the Company has deepened

ecosystem with more than 20 domestic and overseas universities more than 10 research institutes and more than 80 business partners.industry collaboration.Additionally it has established more than 20 joint laboratories joined over 40 associations and industrial alliances. By fostering an extensive

resources-based collaborative innovation ecosystem the Company improves innovation collaborative efficiency and drives industrial optimi- We integrate emotional value into product design and launched the No.5 “Chasing Light” Q10Air series creating a premium differ-

zation and upgrading. entiated product line which received the “2025 China Electronic Video Industry Association Technology Innovation Award”.We continue to increase investment in AI televisions expanding AI-driven user experience scenarios. In 2025 the Company re-

Case ceived authoritative recognition as a pioneer in AI TV.The Company has maintained continuous collaboration with the University of Electronic Science and Technology of China on several

key projects including flexible sensor development and smart home intelligent agent development.Participation In Industry Standard Setting

We uphold a strong sense of industry responsibility and innovation leadership actively participating in the development of national industry

and group standards including product energy efficiency standards SRRC certification management measures product information security

and product safety standards.During the reporting period we participated in the development of 37 standards including 25 national standards 4 industry standards and 8

group standards. Participation in industry standard development reflects the Company's technical strength and industry influence.81 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 82

Air conditioner Washing Machines

We achieved multiple breakthroughs in core technologies: The industry’s first “full-screen flush integration + AI washing and drying care” combines a fully integrated structure with end-to-end

AI-powered washing and care.Our AI cloud-based energy-saving air conditioning technology enables personalized energy optimization through dual algorithm and

data-driven mechanisms reaching an advanced industry level. An industry-first advanced drum cleaning system including inner drum rinsing lint filtration and backflushing functions.The “Wending” inverter technology platform leverages AI-based vibration suppression and other optimizations to significantly reduce

noise and vibration enhancing user experience.We pioneered industry-first technologies for detecting air conditioner blockages and air intrusion enabling closed-loop risk preven-

tion with refrigerant monitoring accuracy reaching a leading industry level.We introduced the industry’s first “Shanshui” air ecosystem management solution using AI coordination to intelligently integrate con-

trol of temperature humidity fresh air negative ions and air cleanliness creating an indoor “microclimate” that closely resembles

a natural environment.Compressors

The NUD-NA series ultra-efficient compressors by Changhong Huayi achieved an energy efficiency ratio above 3.0 (under CEPG con-

ditions) and were selected as a Coca-Cola global preferred supplier for five consecutive years.Refrigerators (Freezers) The self-developed VNW series inverter units have achieved industry-leading Coefficient of Performance (COP) while the DW series

ultra-micro onboard DC compressors are the smallest products globally.AI defrosting and cloud-based freshness preservation technology to enhance both energy efficiency and food preservation perfor- In electronic control we improved the efficiency of ultra-efficient household inverter boards developed the new T series with fully

mance reaching an advanced industry level and enabling large-scale deployment. self-developed algorithms and completed a solution for electrolytic capacitor-free inverter boards.We developed multi-system constant-temperature refrigeration and quality defrosting technologies to address key industry chal- Zhejiang Weile a subsidiary of Changhong Huayi focuses on the new energy vehicle sector. Breakthroughs in low-temperature heat

lenges in food preservation ingredient thawing and cooked food storage and applied them to the M Fresh product series. pump technology have enabled noise and vibration performance significantly exceeding automotive-grade standards continuously

expanding application scenarios for onboard compressors.ICT Technology Services

Changhong Jiahua has expanded into emerging fields such as cloud computing intelligent computing centers digital security the

metaverse and the low-altitude economy integrating products and solutions to serve diverse industries and application scenarios.Changhong Jiahua in collaboration with the 081 Group has deployed an integrated air-ground sensing and communication system

platform to address bottlenecks in the low-altitude economy with the project receiving third prize in a themed track of an Internet

Innovation Competition.We continue to empower the XR ecosystem and have been recognized as one of China’s Top 50 VR Enterprises for three consecutive years.In 2025 Changhong Jiahua’s “Smart Business” capability system was recognized as a “2025 New-Generation Information TechnologyIndustry Innovation Service Provider”.83 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 84

Product development addressing environmental challenges Advancing intelligent manufacturingwe conduct green design in accordance with the “Administrative Measures for the Restriction of the Use of We focus on the intelligent upgrade of the entire production process building an efficient precise and green intelligent manufacturingFor products in Hazardous Substances in Electrical and Electronic Products”. Components certified through national environ- system through multi-dimensional initiatives to enhance quality and efficiency reduce costs and strengthen the foundation for high-qualitythe domestic mental protection testing are used and in line with the “Implementation Arrangement for the Conformity As- development.market sessment System of the Restriction of the Use of Hazardous Substances in Electrical and Electronic Products”

our testing center performs environmental testing and conformity certification for complete products.

2025

For products

in overseas we design and manage materials in accordance with environmental requirements of target markets such as

markets the EU REACH regulation and RoHS requirements. Six of the Company's factories were selected as "Sichuan One factory of the company has been

Province Advanced-Level Intelligent Factories" includingselected as a “National Excellent-Level Smart Factory”.In 2025 the Company completed energy efficiency filing for 185 flat-panel display models obtained energy-saving certification for 61 product Sichuan Changhong Changhong

NeoNet Technologies Changhong Jijia Moulding

series and 18 certification changes and secured environmental labeling certification for 69 products. We obtained 122 new energy-saving Changhong China Smart Display

certificates covering a total of 221 models; successfully passed CQC unannounced factory inspections and four rounds of “Ten-Ring” certi-

fication audits; completed RoHS conformity assessment for all models; and secured 15 additional voluntary certifications including China Changhong Changhong Air Changhong Precision

Packaging Conditioner

Environmental Labeling Certification and China Green Product Building Materials Certification.Metrics and targets

Intelligent manufacturing technologies and applications

In 2025 the effective utilization rate of the Company’s R&D expenditure on technology platforms reached 90% successfully achieving the

target set in 2024 of increasing the effective utilization rate to 85%. Meanwhile the Company’s R&D investment in 2025 is presented in the

table below:

RD investment Proportion of R&D investment in operating revenue

249048.16 260148.57 270445.78 2.56 2.51 2.49 Connectivity and centralized Digitalization and Predictive maintenance and

control visualization efficient decision-making

Leveraging IoT and big data we built We implemented a 2D digital twin Using edge computing and AI-based

an equipment cluster centered on system to digitally upgrade the fin- machine learning we built a proac-

the MES system to enable inter- ished goods automated warehouse tive maintenance system to enable

connectivity and centralized control addressing fault diagnosis and infor- predictive equipment maintenance

2023 2024 2025 2023 2024 2025 across production lines and equip- mation transparency challenges and and reduce failure risks; we de-

ment driving deep integration of IoT enabling real-time visibility of equip- veloped digital dashboards across

and automation and achieving intel- ment operations and workflow pro- all business areas and established

2026 Target Setting ligent management of equipment gress; we also developed a line-side performance review mechanisms

clusters. warehouse management system to support precise decision-making

for raw materials to track material and enhance both maintenance and

R&D Targets Innovation Targets flows and update inventory in real decision support capabilities.time improving inventory efficiency.In 2026 we will continue to increase R&D investment main- In 2026 we will accelerate the deployment of AI-driven ap-

taining an annual growth rate of no less than 10%. We will plication scenarios further strengthen the product manager

steadily improve the effective utilization of R&D expenditure on system shorten the time to market for new products improve

technology platforms focus on key technology breakthroughs commercialization mechanisms and continuously enhance

and high-potential product development and optimize the pre- the efficiency and market alignment of innovation outcomes.cise and efficient allocation of innovation resources to further

enhance overall R&D effectiveness.85 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 86

Intelligent manufacturing factory cases 081 Group Smart Factory

In automation upgrades we introduced 13 types of automated equipment including vacuum infusion machines automatic welding

Changhong China Intelligent Display Smart Factory machines and automatic winding machines enabling automated operations across multiple processes and driving overall manu-

facturing capability improvement; in digitalization we completed the implementation of information systems such as PLM and MES.Leveraging IoT and big data we established an MES-centered equipment

cluster covering more than 1100 key devices enabling interconnectivity

and centralized control across production lines and equipment. Based Changhong Power Smart Factory

on industrial robotics we applied AI machine vision and force-sensing achieving 100% numerical control in

technologies to independently develop fully automated equipment for key critical processes and improving labor productiv-

processes such as feeding processing assembly and palletizing achiev- We continue to advance automation upgrades in key processes and deploy intelligent equipment introduce automated production

ing 100% numerical control in critical processes and improving labor pro- 65 lines and build integrated information systems around production including the implementation of MES and the advancement of ductivity by 65%. ity by %. data integration.Empower Digital Transformation

The Company is guided by the annual principle of “putting users at the center and advancing full-factor digitalization”. We deepen AI adoption

enhance digital management capabilities and optimize smart supply chain platforms to empower operational performance and industrial

innovation through digital transformation with the goal of becoming a benchmark for digital transformation in manufacturing.Digital Transformation Initiatives:

Smart finance system upgrade

We deployed the S6 intelligent finance system integrating OCR and AI models with financial management and implemented

Changhong NeoNet Technologies Smart Factory applications such as intelligent order creation and automated approval to advance intelligent and automated finance practices.Warehouse Management System (WMS) Manufacturing Execution System (MES) intelligent logistics system and warehousing Building a digital management center

systems work in synergy to enable real-time tracking intelligent sorting unmanned delivery smart fleet scheduling and route

optimization. We advanced the development of the digital management center establishing indicator systems across six key control areas

including procurement management technological innovation and digital enablement to enhance standardized and refined op-

erations management and provide strong support for operational governance.Developing intelligent workplace applications

We established the Hongxi intelligent application ecosystem and successfully incubated AI applications for common scenarios

including document comparison document analysis and knowledge-based Q&A.Building a knowledge service platform

We developed the Hongyunhui knowledge platform innovating a “data + AI” model for data utilization and deployed intelligent data

query and reporting applications to effectively improve the efficiency and scientific rigor of business decision-making.87 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 88

Regular risk assessment and reporting

Case: Demonstrating “intelligent transformation and digital upgrade” to drive industrial upgrading in western regions

Business units conduct periodic IP risk reviews while headquarters applies ongoing oversight to develop a company-wide risk map

and report to management ensuring risks remain transparent and controllable.In April 2025 the Western New Industrialization Development Conference was held at Phase II of the Zhongguancun Project in Mianyang

Sichuan. As a representative enterprise of western China Sichuan Changhong presented its achievements in leveraging cross-industry

and cross-domain industrial internet platforms to enable intelligent transformation and digital upgrading. This presentation demonstrat-

ed the Company’s core capabilities strengthened its brand influence and leadership in the industrial internet field set a benchmark for Performance evaluation and accountability

digital transformation and upgrading in western industries and effectively promoted the transition of regional manufacturing toward

intelligent and green development.The effectiveness of IP risk management is incorporated into annual performance assessments for selected business units and sub-

sidiaries with clear accountability mechanisms in place for significant losses caused by failures in risk management.Strengthen Intellectual Property Protection

Development of the Intellectual Property Protection Workforce

The Company consistently upholds the principles of respecting intellectual property rights and avoiding legal risks and makes every effort to

safeguard the legitimate rights and interests of the Company and its investors. At the headquarters level the Company maintains a dedicated IP team while 28 subsidiaries have full-time or part-time patent management

teams or personnel with a total of 102 staff engaged in IP management. The workforce primarily includes full-time patent professionals

In 2025 part-time legal staff and part-time technical engineers. Among full-time personnel over 80% hold patent agent qualifications including

nationally recognized experts senior IP agents and licensed attorneys.The Company filed 1455 new patent applications obtained 831 patents and was granted 240 invention patents. Intellectual Property Protection Training

We actively conduct IP protection training programs covering patent operations trade secret protection and trademark management aiming

to build a comprehensive IP protection system and safeguard innovation-driven development.Intellectual Property Protection System

The Company strictly complies with regulations such as the “Enterprise Intellectual Property Management Standard” and the “IntellectualProperty Management Manual”. We have established policies including the “Patent Management Measures” and the “Patent Risk Man-agement Measures” built a comprehensive and standardized intellectual property management system and obtained certification for the

intellectual property management system. Strengthening Product and Service Safety and Quality

The Company has established an intellectual property protection governance structure overseen by senior management and led by theGeneral Administration Department with dedicated IP protection teams in each department responsible for intellectual property and patent The Company adheres to its quality policy of “customer first excellence-driven intelligent and quality manufacturing inno-protection. vation-led”. We strictly comply with the Law on the Protection of Consumer Rights and Interests the Product Quality Law

and other applicable laws regulations and standards ensuring product and service quality in a comprehensive manner and

effectively safeguarding the legitimate rights and interests of consumers.Intellectual Property Risk Management

We continuously strengthen intellectual property risk management by refining processes enhancing risk identification and assessment and

reinforcing accountability mechanisms to build a robust IP protection framework. Governance

The Company has established policies such as the “Service Quality Management Measures” defining management processes for product

Risk database development and sharing

quality and customer service. We incorporate product and service quality management into our governance framework building a compre-

hensive multi-level quality management system. The Company has established a dedicated quality management department at headquar-

We systematically collect and dynamically update internal risk case repositories and external risk alert databases regularly report to ters to oversee end-to-end product and service quality management. We have also built a professional product testing center and strength-

management and share risk cases across business units. ened after-sales service operations to ensure product inspection acceptance and service support delivering reliable high-quality products

and services to customers.89 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 90

Strategy Quality Risk And Opportunity Management Process

The Company has established the “Quality Risk and Opportunity Management Procedure” defining structured processes and measures for

identifying analyzing evaluating and responding to product quality risks and opportunities. In 2025 all quality risks remained within ac-

Risk Financial Impact Impact

Mitigation Measures ceptable and controllable levels with no major high-risk quality incidents effectively avoiding significant economic losses and major quality

Description Impact Duration Level

accidents.We have established a full-chain quality

Quality issues arising from design control system covering raw material pro-

Expenditure Identification of Business units identify quality risks and opportunities by analyzing the macro environment industry land-

or manufacturing defects may re- Short term High curement through to finished product de-

increased quality risks and scape and internal conditions while considering the requirements of stakeholders such as customers

sult in product recalls. livery and maintain product liability insur-

opportunities suppliers and partners.ance to mitigate potential financial risks.Inadequate service processes or in- We strengthen professional training for Quality risk and

We assess identified risks based on severity and likelihood in accordance with evaluation criteria deter-

sufficient staff capabilities may lead service personnel and establish regular opportunity

Revenue (de- Short term mine risk coefficients and classify risk levels (Level I: low risk; Level II: moderate risk; Level III:high risk).to poor customer experience result- Medium customer experience surveys to contin- assessment

cline) Medium term

ing in complaints reputational dam- uously improve service processes and

age and customer attrition. standards.Quality risk and

We apply appropriate control measures based on risk levels including risk elimination avoidance miti-

opportunity

gation or acceptance.control

Opportunity Financial Impact Impact

Mitigation Measures

Description Impact Duration Level

Quality risk and

We conduct regular reviews of risk and opportunity management to verify the effectiveness of control

By delivering high-quality prod- opportunity measures.ucts and services the Company We have established ongoing customer review

enhances customer satisfaction Revenue Medium term satisfaction surveys and incentive mech-

Medium

and loyalty driving repeat pur- increased Long term anisms to dynamically refine product and

chases and positive word-of- service quality standards.mouth.Establishment of a Quality Management System

Leveraging our technological We increase investment in core technology

strengths we develop differentiat- R&D to create differentiated high-quality

Revenue Medium term

ed high-quality products gain early Medium products and enhance market recogni- The Company’s product quality management measures cover the entire product lifecycle. The Company’s quality management system is

increased Long-termmarket positioning and achieve both tion of product quality advantages through aligned with the ISO 9001 standard strengthening a three-tier framework of “quality manual procedural documents and managementproduct and brand premiums. brand communication. standards” and continuously improving system performance. In 2025 the Company successfully passed the quality management system

surveillance audit confirming compliance with the ISO 9001:2015 international standard.Impact risk and opportunity management

Product quality management and improvement

The Company adopts advanced quality management tools and control methods conducts quality benchmarking and QC improvement pro-jects and establishes a collaborative management mechanism characterized by “user demand-oriented business unit-centered headquar-ters-supervised and supported by market regulation authorities” thereby promoting continuous improvement in product and service quality.The quality management department together with product line teams relies on systems such as the “Quality Capability Evaluation Man-agement Standard” to focus on system development standard upgrades issue remediation tool application and capability enhancement. We Quality Management System Certification

have established a PDCA closed-loop improvement mechanism to systematically advance end-product quality.91 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 92

Advancing digital quality management A total of 97 quality improvement achievements were recognized as national- ministerial- provincial- ormunicipal-level excellence projects. The Company was also awarded the title of “Outstanding Enterprise forQuality Management Group Activities in Sichuan Province” jointly by the Sichuan Provincial Quality Association

We are advancing the development of a digital quality management platform leveraging digital

2025 and the Sichuan Provincial Federation of Trade Unions.and AI technologies including image and voice recognition and system integration to capture

lifecycle quality data across product design incoming inspection and production processes.By integrating quality tools and methodologies we are building a digital quality platform that IQC inspection efficiency by over In 2025 we implemented more than 600 quality improvement initiatives increasing the overall quality perfor-

enables efficient collaboration precise analysis intelligent early warning and data-driven de- mance of key end products by over 10%.cision-making based on reliable quality data. This platform empowers quality management

across R&D supply chain production processes and market performance systematically en- 30%

hancing overall quality assurance capabilities.In 2025 the Company established an IQC incom-

ing material quality data application management system centered on material quality which The Company joined the China Association for Quality the China Electronics Quality Management Asso-

has been applied in certain product lines improving IQC inspection efficiency by over 30%. ciation and the Sichuan Quality Association.Strengthen the product recall management mechanism.The Company has established and effectively operates a product recall management mechanism adhering to principles of proactive recalllegal compliance closed-loop management and consumer rights prioritization. We have formulated the “Defective Consumer Product RecallManagement Measures” defining full-process requirements for information collection defect assessment plan formulation recall imple- Customer Service Rights Protection

mentation and reporting with strict execution. In 2025 the Company had no product recalls no major negative product or service incidents

and no material product quality and safety incidents. The Company adheres to a “customer-centric” service philosophy and fully implements the PDCA (Plan-Do-Check-Act) cycle. We have es-tablished and implemented a standardized documentation system covering the entire service process including the including the “QualityManual” “Household Appliance Service Standard SOP” “User Complaint Management Measures”. We have also set up a dedicated service

unit (Changhong Service Centers) to manage after-sales service customer complaints and customer rights.Quality enhancement training

The Company has defined requirements for quality professionals at all levels including education training knowledge skills competencies

professional capabilities and value contribution. We established qualification and grading standards for quality professionals and conduct Customer Complaint Management Mechanism

targeted training programs to strengthen the capabilities of our quality workforce.The Company has established the “Customer Complaint Management Measures” and “Product Return and Exchange Procedures”. These

policies define complaint categories responsibility allocation and standardized handling procedures.Product quality certification management

In 2025 the Company conducted mandatory testing and auditing for household appliances and component products listed in the China Com-

pulsory Certification (CCC) catalogue obtained CCC certification and was awarded the corresponding CCC certificates. Among them 381 air We have established a multi-channel complaint collection

conditioner models passed CCC certification. system integrating call centers online platforms and public We respond promptly to collected complaints and con-

opinion monitoring to enable rapid aggregation classification duct tiered assessments based on issue type and cus-

routing and end-to-end tracking of customer feedback. tomer needs.Quality improvement outcomes 01 Complaint information collection 02 Complaint assessment

In 2025

04 Optimization mechanism 03 Complaint handling

The Company’s core products including LCD TVs and room air conditioners all passed product quality inspec- the Company achieved a

tions conducted by national and local market regulation authorities 100 We continuously feed complaint anal- Based on assessment results we provide tai-% customer ysis results into product and service lored solutions such as repair replacement improvement processes to drive sys- or compensation with particular attention to

complaint resolution rate. tematic optimization. emotional and personalized customer needs.93 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 94

Enhance after-sales service Indicators Unit 2023 2024 2025

After-Sales Warranty Services After-sales service channels Customer satisfaction rate % 99.20 99.11 99.37

We publish “Three Guarantees” policies and service National unified service hotline: 4008111666 / 4006111666; Customer complaint rate % 0.19 0.19 0.15

procedures on the Company’s official website where

With over 4000 service outlets and more than 15000

users can access warranty information. Customer Complaint Resolution Rate % 100 100 100

certified service engineers we provide 24/7 service re-

We have established a tiered response and quality sponse nationwide.traceability system for repair timelines and parts re-

Official WeChat account “Changhong Meiling Service”

placement supported by intelligent customer service

to handle repair requests. Product accessibility

The Group is committed to removing barriers related to geography and technology by optimizing product portfolios expanding sales channels

After-sales logistics services After-sales training and certification and enhancing service quality enabling products to reach consumers and delivering accessible smart living experiences.Changhong Minsheng Logistics leveraging a digital logis-

We strictly control service entry standards and provide

tics platform utilizes Internet of Things (IoT) technology

ongoing training and certification for service engineers.to achieve full-process visualized management of trans- Product channel accessibility

portation and warehousing effectively reducing logistics

losses and enhancing quality stability.We continuously expand and enhance channel coverage by adding traditional retail outlets and Changhong Meiling specialty stores in-

In the area of transportation safety Changhong Minsheng tegrating operator resources developing O2O co-branded stores and expanding across e-commerce platforms including marketplace

applies a four-dimensional video surveillance system

Digital After-sales Management live-streaming social commerce and membership-based channels. We also extend B2G and enterprise integration partnerships es-

combined with AI-based behavior recognition technology tablish community-based direct sales experience stores and expand services in county township and rural markets to improve product

to provide real-time alerts on dangerous driving behav- accessibility.iors ensuring dual protection for personnel and goods.We digitally manage after-sales service processes us-

An intelligent dispatching system has been established ing service applications to track service milestones in

based on the BeiDou/GPS data cloud platform to dynami- real time and ensure standardized operations.cally monitor route deviation risks and implement manu- Product design accessibility

al intervention when necessary. The warehousing process

is regulated through real-time monitoring of RDC storage

areas standardizing the storage and handling operation The Company’s subsidiary Hongmofang focuses on the needs of

procedures of goods. users across different age groups and segments building a healthy

compliant and diverse large-screen content ecosystem:

We optimize product interaction design for elderly users and intro-

duce a "Senior Mode" that simplifies interfaces and enhances voice

Customer Satisfaction Surveys assistance lowering barriers to use and enabling seniors to easily

enjoy the convenience of smart technology.We launch a dedicated "Children Mode" for younger users filtering

inappropriate content and applying scientifically designed screen-We have established multiple management policies including the “Customer Satis-time limits and age-based content recommendations to supportfaction Evaluation Control Procedure” “Installation and Maintenance Service Qualitytheir healthy development.Inspection Measures” and “Customer Satisfaction Survey Management Measures”.We conduct regular spot checks post-service follow-ups periodic satisfaction sur- The Company’s Smart Health subsidiary showcased over 20 smart

veys and on-site visits to continuously capture customer feedback and implement elderly care products at the 6th Sichuan International Elderly Care

internal improvements ensuring sustained customer satisfaction. Services and Industry Expo including digital hearing aids non-contact

vital signs monitors smart health watches and wearable ECG devices

In 2025 the Company conducted customer satisfaction surveys achieving a satisfac- supporting health management and safety protection while precisely

tion rate of 99.37% representing a year-on-year improvement. addressing the needs of elderly users.95 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 96

Responsible marketing Indicators and Goals

The Company strictly complies with the Law on the Protection of Consumer Rights and Interests of the People’s Republic of China the Ad-

vertising Law of the People’s Republic of China the Anti-Unfair Competition Law of the People’s Republic of China and other applicable laws In 2026 the Company will center on the ISO 9001 quality management system to strengthen end-to-end quality capabilities enhance refined

regulations and industry standards. The Company has formulated management policies for brand promotion and media communication risk management and advance digital enablement ensuring compliant operations safeguarding customer rights and reinforcing brand trust

including the Administrative Measures for News and Public Opinion Release and Communication the Administrative Measures for Self-op- and market competitiveness.erated New Media the Administrative Measures for Online Brand Image Carriers the Bottom-line List for External Communication and theAdministrative Measures for External Spokespersons thereby shaping a credible brand image. The Company has established a “Brand andQuality Management Committee” to oversee brand marketing brand value brand communication and related activities.Indicators Targets for 2025 Progress During the Reporting Period

Complaint resolution rate Reached 100%. Completed

Responsible marketing commitment

The Company commits to strict review in all marketing and promotional activities avoiding any exaggerated false or misleading statements Product recall incidents No product recall incidents occurred. Completed

and upholding responsible marketing practices.Major product quality and safety No major product quality and safety inci-

Completed

incidents dents occurred.Standardized marketing management process

For general product marketing For specific IP products

we strictly comply with media placement requirements and we implement strict responsible marketing control mecha-

require marketing personnel to adhere to responsible mar- nisms ensuring all promotion and marketing activities re- Strengthening Data Privacy Management

keting principles avoiding false or exaggerated claims and spect and protect IP in accordance with established policies.ensuring users can trust our products and services.The Company strictly complies with national laws and regulations on cybersecurity data security and personal information

protection. The Company has established a data privacy management system and through full-process risk prevention and

control ongoing capability building and adherence to technology ethics has built a robust data security defense and safe-

guarded user privacy rights providing solid digital security support for stable operations and sustainable development.Product marketing education

We provide customers with product and service education through multiple channels. Upholding Technology Ethics

The Company places great importance on technology ethics management. In scenarios such as user research and artificial intelligence eth-

For supplier clients For channel partners ical requirements are embedded into project processes. The Company has issued the Provisions on the Deployment and Application of Large

AI Models and other systems promoting closed-loop security management of Large-scale AI models across dimensions including training

we promote products through government-enterprise part- we leverage our regional offices and product center training data security privacy protection algorithm security content compliance ethical and moral safety and system security. Through technical

nerships cross-industry collaborations and supplier con- managers to deliver regular product training. measures such as enhancing model robustness adversarial defense security validation and interpretability research the Company im-

ferences while clearly communicating key products service proves the safety and reliability of AI systems.benefits and promotional offerings during the sales process.At the same time the Company promotes the establishment of a Technology Ethics (Review) Committee to conduct regular inspections

evaluations and handling of the implementation of technology ethics systems and to carry out regular training and awareness programs on

technology ethics.97 ESG Report 2025 Innovation-driven Changhong advancing industrial upgrading 98

Strengthening Data Security Information Security Management Measures

The Company regularly invites internal and external information security experts to conduct training and aware-

In accordance with national laws and regulations and in light of its business practices the

Information Security ness programs for employees at all levels covering laws and regulations management systems and security

Company has formulated the Management Rules for the Protection of Trade Secrets and 2025 Training awareness. The Company has established a dedicated information security training program covering all em-

implements classification-based and tiered management based on data security attributes.ployees and delivers training on information security and privacy protection through diversified formats.The Company deeply integrates data security requirements into its core business processes.The Company has established a full-process emergency response mechanism and regularly conducts cybersecurity

By conducting regular data security risk assessments it systematically advances data secu- No Information Security data security incidents emergency drills. During the reporting period the Company handled more than 30 security incidents none of which

rity risk governance and strengthens its data security defenses. Emergency Response

occurred during affected production and operations effectively preventing the occurrence of major cybersecurity incidents.The Company adopts encrypted storage for sensitive information such as user account passwords and applies mask-

Information Encryption

ing of sensitive fields to user mobile phone numbers ensuring compliant use of information while safeguarding user

and De-identification

privacy.Supplier Information The Company extends its information security management requirements to suppliers by signing confidentiality

Security Management agreements and conducting on-site information security reviews.Case: National Pilot Program for Innovative Development of Trusted Data Space for Enterprises

The Company has established a unified data backup system implementing tiered backup management for informa-

Critical Information

In response to challenges such as the difficulty of forming a closed-loop for data value across the supply chain high barriers to collabo- tion systems and data. The Company has also set up a disaster recovery data center to provide dual backup for both

Backup

rative data development between front-end and back-end systems and difficulties in managing data security across internal and external software and hardware of critical information systems.collaboration the Company plans to build and operate an intelligent manufacturing supply chain collaborative trusted data space. This

The Company has established a normalized information security review mechanism conducting quarterly security

initiative aims to support compliant and efficient circulation and utilization of supply chain data enabling efficient business collaboration Information Security

testing of information systems organizing annual internal information security reviews and engaging third-party pro-

and innovation in ecosystem applications. Review

fessional institutions to carry out information security risk assessments.Safeguarding Information Security Customer Privacy ProtectionThe Company strictly complies with the Cybersecurity Law of the People’s Republic of China the Data During the reporting period The Company adheres to the principles of “lawfulness and compliance user authorization and minimum During the reporting periodSecurity Law of the People’s Republic of China the Personal Information Protection Law (PIPL) of the necessity” and has established a customer privacy protection framework centered on the Administrative

People’s Republic of China and other relevant laws and regulations. The Company has established an in- Measures for Cybersecurity and User Privacy Protection and the Administrative Measures for User Infor-

formation security governance structure supervised by senior management led by the digital transforma- No mation Security of Service Information Systems. This framework covers full lifecycle management of user information security No user information leak-tion department and collaboratively implemented by various business units. The Company continuously data. At the same time the Company has established a multi-department collaborative governance struc-

age incidents occurred

advances the development and normalized operation of its information security management system. risk incidents occurred with- ture supported by technical traceability measures and a three-tier emergency response mechanism to

in the Company effectively protect customer privacy fulfill compliance obligations and strengthen the trust foundation of

During the reporting period the Company successfully passed the ISO/IEC 27001 Information Securi-

the digital service ecosystem.ty Management System recertification and obtained the Level III certificate under China’s Multi-Level

Protection Scheme (MLPS).Data Security and Privacy Protection

Information Security Management Measures The Company has established an end-to-end security framework of “encryption–authentication–protection–control”. Through multiple measures—

including data encryption technologies multi-factor identity authentication and authorization secure network transmission protocols encrypted

Establish a comprehensive information security management system and organizational structure clarify storage solutions server firewall deployment and refined access control strategies—it achieves full lifecycle security management of users’ per-

cybersecurity management responsibilities at all levels and strictly implement the requirements of the sonal information. In 2025 the Company obtained the Level III certification under China’s Multi-Level Protection Scheme (MLPS) for cybersecurity.Information Security Multi-Level Protection Scheme (MLPS) for cybersecurity;

Tiered Governance

Build a defense-in-depth information security architecture implement classification-based and tiered

management of industrial data and continuously enhance information security governance capabilities. User Privacy Policy

Steadily advance comprehensive cybersecurity certification including ISO/IEC 27001 Information Security Through its Honglingjin system the Company released the Changhong User Privacy Policy which provides users with a detailed explanation of the pur-

Information Security Management System certification and MLPS certification; pose scope methods and protection measures for information collection. We cover all aspects of personal information collection use and protection

Certification Regularly conduct data security risk assessments while completing cybersecurity product certification and clearly informs users of data processing rules and their rights and fully safeguards users’ right to information. In addition the Company has issued the

professional cybersecurity personnel certification. Changhong Children’s Personal Information Protection Rules and Guardian Notice providing comprehensive protection for children’s personal information.People-oriented

Changhong 04

Safeguarding Employee Growth

Sichuan Changhong protects the legitimate rights and

interests of employees empowers their development

conveys corporate care and achieves mutual growth and

shared success between the Company and its employees

demonstrating the responsibility of a state-owned

enterprise in talent development.Improving Fair Employment Mechanisms 101

Safeguarding Employee Rights and Well-being 104

Empowering Comprehensive Employee Development 107

Implementing Occupational Health and Safety 113

Respond to the United Nations Sustainable

Development Goals101 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 102

Improving Fair Employment Mechanisms Employee Regional Distribution (2023–2025)

Number of Chinese employees Number of foreign employees

Sichuan Changhong upholds the bottom line of fair employment by integrating equal employment and diversity management throughout (Person) (Person)

the entire talent management process demonstrating inclusiveness and a strong sense of responsibility in talent governance. The Com-

pany has established a dedicated human resources management department responsible for employee management. 44617 44194 45712 826 1182 1174

Equal Employment

202320242025202320242025

Sichuan Changhong has systematically established a fair employment system. We strictly comply with national and local labor laws

and regulations including the Civil Code of the People’s Republic of China the Labor Law of the People’s Republic of China the Labor

Contract Law of the People’s Republic of China the Law of the People’s Republic of China on Promotion of Employment and the Pro-

visions on the Prohibition of Child Labor and has formulated internal policies such as the Administrative Measures for Cadres and the Fairness and Anti-discrimination

Recruitment Management Measures to implement equal employment.The Company strictly implements institutional requirements such as the Employment Management Guidelines and the Detailed Rules for

Disclosure of Employment Information. We prohibit all forms of employment discrimination based on nationality gender age race religion

Employee Structure pregnancy disability or other factors. We ensure that all employees enjoy equal opportunities in employment compensation and benefits

and career development fostering a talent environment characterized by openness fairness merit-based competition and mobility.Employee Headcount Statistics (2023–2025)

Total number of employees Total number of male employees Total number of female employees

Prevention of Child Labor and Forced Labor

(Person) (Person) (Person)

45443 45376 46886 26142 25934 28139 19301 19442 18747 The Company also enforces the Employment Management Guidelines the Detailed Rules for Disclosure of Employment Information and re-

lated rules and has formulated the Employment Management Measures which clearly stipulate that only individuals aged 18 and above may

enter into labor contracts with the Company. We strictly comply with national working hour standards and firmly prohibits any form of child

labor or forced labor. At the same time the Company has established the Administrative Measures for Employee Leave to ensure reasonable

working hours and employees’ rights to rest and leave. During the reporting period there were no incidents of discrimination child labor or

2023 2024 2025 2023 2024 2025 2023 2024 2025 forced labor.

Employee Age Distribution (2023–2025)

Employees aged 29 and below Employees aged 30–39 Employees aged

(Person) (Person) (Person) Diversity Management

8515964810788123321229212689142911399314692

Overseas Employee Management

To effectively implement its internationalization strategy and accurate-

2023 2024 2025 2023 2024 2025 2023 2024 2025 ly match talent needs of overseas core business units the Company

has established a full-chain overseas talent management system cov- Localization rate of overseas employees

Employees aged Employees aged 55 and above ering attraction development utilization and retention. The Company (%)

(Person) (Person) has built a market-oriented and differentiated overseas compensation

6713 6205 5807 3592 3238 2910 and benefits system a diversified and targeted overseas recruitment

96.6197.4689.90system and a talent development system integrating “theoretical em-powerment + practical experience” thereby driving high-quality and

sustainable development of overseas business through enhanced

Global talent management.

202320242025

2023 2024 2025 2023 2024 2025103 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 104

Female Employee Management Management of Employees in Hardship

The Company attaches great importance to the man- The Company has further improved its assistance and relief mechanisms for employees in hardship by establishing support ledgers and

Proportion of female managers

agement of female employees. Guided by principles information platforms. Leveraging the “Hongkang Medical Relief System” we provided over RMB 100000 in assistance funds to employees

(%)

of equality respect and care the Company has built suffering from major illnesses and those facing family difficulties. The Company completed annual declarations for employees in hardship and

a diversified development platform. 15.66 14.24 13.72 implemented tiered support measures to ensure effective alleviation of difficulties and improvement of their living conditions.

2023 2024 2025 Safeguarding Employee Rights and Well-being

Implementation of Equal Pay for Equal Work

Democratic Management and Communication

The Company strictly enforces the principle of equal pay for equal work eliminating gender-based pay discrimination at the institutional

level and ensuring that female employees enjoy fully equal rights with male employees in compensation and performance incentives.The Company integrates democratic management deeply into its business operations continuously advancing the development of a mul-

ti-level employee representative congress system and promoting the effective implementation of collective consultation mechanisms.Safeguarding Maternity and Work-Life Balance

Flexible working arrangements including flexible working hours and remote work are provided for pregnant employees; Employees’ Representative Congress

Nursing rooms are established in office areas equipped with constant-temperature refrigerators comfortable nursing chairs and baby

The Company adheres to democratic management of enterprise affairs with transparency with the Employees’ Representative Con-

care tables providing private and convenient spaces for breastfeeding employees.gress system as its fundamental form. We implement democratic election democratic consultation democratic decision-making

democratic management and democratic supervision in accordance with the law. This approach fully mobilizes employees’ enthusi-

asm initiative and creativity and fosters harmonious labor relations.Prevention of Workplace Harassment

In 2025 the Company convened the Fourth Session of the Fifth Employees’ Representative Congress enabling employee representa-

The Company strictly prohibits all forms of workplace harassment and handles such incidents in accordance with laws and regulations tives to gain a comprehensive understanding of its annual operating performance business plans and reform initiatives. During the

respecting and protecting female employees. reporting period to further broaden channels for democratic management the Company held five joint meetings of heads of employee

representative groups. These meetings reviewed important documents directly affecting employees’ interests including the 2025 Col-

lective Wage Agreement and revisions to the Enterprise Annuity Plan thereby promoting co-construction and sharing between employ-

ees and the Company and enhancing employees’ sense of gain and satisfaction.Management of Special Employee Groups

Upholding principles of respect and inclusiveness the Company creates a fair equitable and supportive working environment for special Enriching Democratic Engagement

employee groups enabling them to fully realize their talents and achieve personal value.The Company has upgraded employee service facilities and platforms. In 2025 we completed the construction of an employee activity room at

the Changhong Trade Center. To date the Company has established four “Employee Homes” four employee activity centers seven psycholog-

ical support stations and nine “mommy & baby rooms”. These facilities have significantly enriched employees’ cultural and recreational life

and the achievements in facility development have received high recognition from municipal provincial and national trade unions.Case: Changhong Air Conditioner’s Practice of Equal Employment

Changhong Air Conditioner strictly implements equal employment and diversity and inclusion principles effectively safeguarding the 2025，To date

employment rights of persons with disabilities and other special groups. As of the end of the reporting period Changhong Air Conditioner

and its subsidiaries employed 55 persons with disabilities. The Company provides customized job positions based on employees’ physical

conditions ensures full payment of social insurance in accordance with national regulations and guarantees comprehensive coverage in

medical care pension unemployment work injury and maternity benefits. We also provide financial assistance and organize dedicated 4 4 7 9

communication sessions to explain company policies ensuring comprehensive protection of rights and delivering human-centered care

for special employee groups. Employee Homes employee activity centers psychological support stations “nursing rooms”105 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 106

Labor Dispute Mediation Mechanism Benefits System

The Company continuously improves its labor dispute mediation mechanism to A “tiered management” compensation and benefits system has been established. Subsidiaries formulate moderately differentiated

build harmonious labor relations. Leveraging mediation committees and mediator 2025 compensation and benefits policies based on industry characteristics and regional differences.teams at all organizational levels the Company conducts labor dispute mediation in

The Company assisted in handling moreaccordance with the principles of “prevention first mediation as priority and coordi- Employee income consists of base salary for the position + performance-based variable pay + benefits and allowances.nated linkage across levels”. In 2025 the Company assisted in handling more than

30 cases related to petitions rights protection and labor disputes. Performance-based variable pay is determined by subsidiaries based on operating conditions and job characteristics with defined

than 30 cases related to petitions

assessment cycles evaluation standards and reward and penalty criteria and is distributed after performance evaluations.rights protection and labor disputes.Performance and Incentive System

Remuneration and Benefits The Company has improved its employee welfare and security system achieving 100% coverage of five. The one housing fund providing

employees with solid social security protection;The Company has built up its compensation and benefits system centered on “pay for position pay for capability and pay for perfor-A fair and equitable compensation incentive mechanism has been established closely linking performance outcomes with remunera-mance”. The Company has formulated the Compensation Management Measures and the Administrative Measures for Benefits and Al-

tion to fully stimulate employees’ motivation and creativity and to build stable and harmonious labor relations.lowances providing employees with competitive remuneration packages including salaries settling-in allowances housing subsidies

and meal allowances. Relying on fair and transparent mechanisms it safeguards employees’ income rights and effectively enhances

their sense of gain.Performance Appeal

The Company has formulated the Employee Performance Management Measures which clearly stipulate that employees who have

objections to the performance evaluation process or results may communicate with their direct supervisors or file an appeal to a higher

level. The appeal mechanism is as follows:

Free Commuter

medical shuttle Employees of Headquarters Functional Departments

Employee Holiday greetings Departments provide feedback on evaluation results to employees and conduct one-on-one performance communication.and benefits The direct supervisor and the employee jointly complete the Performance Interview and Improvement Plan Form.福利

Paid annual Academic If employees have objections to evaluation results they may submit a performance appeal to the Company’s human re-

leave advancement sources department which is responsible for accepting and handling such appeals. The appeal process is strictly docu-

mented and a Performance Evaluation Appeal Form is completed.Cultural

sports and

recreational

Employees of Subsidiaries

Subsidiaries have established their own performance appeal mechanisms. Employees of subsidiaries may file appeals through

the relevant mechanisms with the subsidiary’s human resources management department or the Company’s human resources

department. Relevant departments handle appeal matters in accordance with established policies and procedures.Overview of

Employee

Benefits107 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 108

Empowering Comprehensive Employee Development Tiered and Differentiated Training Mechanism

The Company designs tailored training programs for different employee groups including management personnel key professional

Sichuan Changhong has built a full-cycle career development ecosystem. Through the integration of hierarchical training system and talent highly skilled talent and new hires. Training content covers leadership training management and control training onboarding

dual-track promotion pathways it aligns with employees’ capability advancement needs enabling both individual value enhancement and training for new hires skills training and qualification certification.the achievement of organizational strategic objectives.At the corporate

Career Development level

Individual devel-

Collective onboarding training for new em- opment & learning

ployeesprofessional capability building and

The Company has established a “unified system with tiered management” rank and position system comprising six major job catego-

skill training specialtraining for overseas Training on promotion professional

ries with corresponding ranks. The Company has created dual-track career development pathways for both professional and manage-

talents training for reserve cadresand competence academic improvement

rial advancement. Annual rank evaluations cover all employees with promotions based on capability and contribution and accompanied

training for managerial cadres. etc.by corresponding salary adjustments thereby empowering employee growth and value realization. Training Categories

At the sub-

sidiary level

“Six Job Categories” Rank Setting New employee onboarding profes-

sional empowerment andskill train-

Management (M) R&D (D) Engineering and Technical (T) Based on job complexity across categories 1–7 rank lev-

ing training for reserve cadres train-

Functional (F) Marketing (S) and Production (P). els are defined with the production category extending

ing formanagement cadres among

up to Level 8. others.Professional Development Path Management Development Path

Case: “Spark Program” Empowering Campus Recruitment New Hires

The Company provides a 6–7 level pro- A four-level promotion pathway has been

motion pathway for technical profession- designed to support employees’ transi-

als across RD engineering technology tion from self-management to managing Sichuan Changhong has developed the “Spark Program” a dedicated onboarding training initiative for campus recruits helping grad-

marketing functions and production. others and ultimately managing teams; uates understand the Company complete role transitions and enhance professional competencies. The program lasts six months and

consists of two phases: centralized Group-level training and employer-unit-led training. The former includes five core modules while

A multi-disciplinary qualification frame- A reserve management talent pool has the latter combines internal training with a mentorship system over five months. This program injects vitality into the Company’s talent

work has been established with clearly been established covering all manage- pipeline and strengthens the foundation for long-term development.defined requirements across profes- ment levels with systematic develop-

sional knowledge skills and key com- ment in leadership management capa-

petencies at different levels and is dy- bilities and business perspective.namically updated in alignment with the

Company’s annual strategy;

Employee Training

The Company has developed a hierarchical categorized targeted empowerment training system building a full-lifecycle career train-

ing ecosystem. We adopt diversified training models integrating online and offline approaches customize courses for different employ-

ee groups and focus on the development of key talent. Training empowerment is leveraged to translate learning outcomes into drivers Spark Program Opening Ceremony Spark Program Corporate Culture Class

of enterprise development.109 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 110

Case: Changhong “Master Classroom” Cultivating Skilled Talent During the reporting period provided assistance to 27 employees in hardship;

Conducted more than 6000 visits to model workers craftsmen and frontline employee representatives;

In 2025 Sichuan Changhong organized six sessions of “Master Classroom” skills training focusing on themes such as lean smart manu- Organized centralized consolation activities during major holidays such as New Year’s Day and Spring Festival covering more

facturing with a total of 337 participants trained. The program innovatively integrates online and offline formats and combines theoretical than 30930 employees and retirees under management platforms;

instruction with practical application promoting the effective transformation of skills into practice. Participants’ learning outcomes have

contributed to improved production efficiency and quality while also establishing an internal branded training program and fostering a Leveraged the “Hongkang Medical Relief System” to provide over RMB 100000 in financial assistance to employees with major

virtuous cycle of skills inheritance. illnesses and those facing family difficulties.Master Classroom

Employee Consolation Activities

Employee Care

Employee Engagement Activities

The Company adheres to a people-oriented approach addressing diverse employee needs by building a comprehensive multi-level

care system. We provide holistic support covering both work and life as well as material and psychological well-being thereby fostering The Company strives to balance employees’ work and life by regularly organizing festive celebrations and sports club competitions enhancing

strong synergy between the Company and its employees. employees’ sense of happiness and belonging.Assistance for Employees in Hardship

The Company continues to deepen the “Doing Practical Things for Employees” initiative constantly improving its employee service system and

enhancing the precision and effectiveness of assistance efforts.Maintains a normalized care Continues themed care initiatives Pays particular attention to em-mechanism providing year-round such as “Warmth in Spring Coolness ployees working in toxic hazard-support and visits to employees in Summer Educational Support in ous and strenuous posts;suffering from major illnesses Autumn and Care in Winter”;

work-related injuries or hospital-

ization;

Lantern Festival Activities Changhong Shuttlecock Club111 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 112

Care for Female Employees

The Company consistently prioritizes support for women’s career development and is committed to building an equal inclusive and empow-

ering workplace environment providing diversified development platforms for female employees.Selected outstanding female employees of the year to encourage innovation and excellence in their roles and showcase the spirit

of women in the new era;

Changhong Badminton Club Changhong Table Tennis Club Provided support visits to 10 female employees in hardship including female migrant workers;

Completed care and assistance programs for four provincially recognized female employees in hardship;

Strictly implemented the special collective agreement on the protection of female employees’ rights ensuring legal rights related

to the “four periods” (pregnancy maternity breastfeeding and recovery) and participation in decision-making.To enrich the cultural life of female employees the Company organized activities such as the “Rose Book Club” reading initiative

and “Happy Children’s Day” parent-child events showcasing the talents and vitality of female employees.“Hong Family Values” Pavilion Visit Activity

“Parents of Changhong Employees Visiting Changhong” Appreci- Changhong Carnival Event

ation Initiative Female Employee Care Activities

Focus on Employee Mental Health

Employee Satisfaction Surveys

The Company values employees’ psychological well-being and actively advances the development of a psychological care system for employ-

ees.The Company regards employee satisfaction as a key indicator of corporate development. Through regular employee satisfaction surveys it

actively listens to employees’ voices and accurately identifies their needs and expectations. Based on survey results the Company continu-

ously optimizes management measures improves its benefits system and enhances the working environment promoting the joint growth

of the Company and its employees.Continued development of the psychological care system conducting seven in-person counseling sessions during the year

serving 183 employees (including 129 on-site consultations and 54 online consultations);

Organized two themed lectures and training sessions on mental health with more than 110 frontline team leaders participating Changhong Jiahua

in training on “Emotional Stress Management and Eye Health Knowledge”;

Conducted online knowledge competitions and sleep disorder psychological assessments during the “5·25 Mental Health Day” While pursuing improvements in both efficiency and effectiveness and advancing cost reduction and efficiency enhancement the

activities; Company strengthens the HR role as an “employee partner” maintaining employee satisfaction above 95%. Through activities

such as stress relief and emotional regulation the Company helps employees reduce pressure maintain health and improve work

Psychological care services reached more than 3000 employees throughout the year.efficiency.113 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 114

Employee Turnover Management Strategy

The Company recognizes the importance of employee turnover management and focuses on analyzing the underlying causes of turnover

Risk Financial Impact Impact

including compensation and benefits career development and working environment. By implementing targeted strategies and optimizing Mitigation Measures

Description Impact Duration Level

retention mechanisms the Company aims to reduce employee turnover maintain team stability and build a solid talent foundation for sus-

tainable and stable development. In 2025 the Company’s employee turnover rate was 4%. A scientifically established dual prevention

mechanism is implemented to strengthen

Revenue (de-

risk control and prevent accidents

cline)

Safety incidents damaged the Short term

High Increased investment in work safety and

brand’s reputation Assets Long term strict control of operational processes

Implementing Occupational Health and Safety Depreciation

Improvement of emergency response plans

to enhance emergency handling capabilities

Sichuan Changhong regards occupational health and safety (OHS) as a core pillar of sustainable development. The Company has estab- Strict source control with full implementation of

lished a comprehensive governance system covering strategic layout system construction risk prevention and control and performance the “three simultaneous” system for construc-

assessment. Guided by international standards the Company continuously enhances its OHS performance through systematic certifica- tion projects;

tion and dynamic management demonstrating the responsibility of an industry-leading enterprise in safeguarding employee rights and Workshops such as those engaged in

ensuring production safety. electronic manufacturing may involve Strict implementation of regular testing of occu-

noise and electromagnetic radiation Short term pational disease hazard factors identification of

Cost increased Medium

which if exposed to over a long pe- Long term hazards and adoption of engineering and tech-

riod may affect employees’ hearing nical control measures

and nervous system health.Regular occupational health examinations are

Occupational Health and Safety organized for employees exposed to hazards

and health surveillance records are established

Governance Opportunity Financial Impact Impact

Mitigation Measures

Description Impact Duration Level

The Company complies with the Law on the Prevention and Control of Occupational Diseases of the People’s Republic of China and the Reg-

ulations on Occupational Health Management in the Workplace. The Company has formulated systems including the Responsibility System

Health management programs Revenue Employee health training and team-build-

for the Prevention and Control of Occupational Disease Hazards the Occupational Hazard Warning and Notification System the Occupational

are implemented resulting in a increased Medium term ing activities are conducted

Hazard Project Reporting System the Occupational Health Education and Training System the Maintenance and Inspection System for Oc- Medium

decrease in employee sick leave Long term

cupational Protection Facilities and the Management System for Occupational Protective Equipment. A three-tier occupational health and Costs Introduce advanced employee manage-

rates

safety management structure has been established to effectively carry out occupational supervision and management. The Company’s parent decreased ment philosophy and techniques

company has joined the Sichuan Occupational Health and Safety Association.Impact Opportunities and Risk Management

Decision-Makers Composed of senior management and heads of various departments it provides overall

Occupational Health Management leadership decision-making and oversight for the Company’s occupational health and

Development of the Occupational Health and Safety System

Committee safety work.Management Level The Company continuously improves its occupational health and safety

Office of the Occupational Health

Management Committee Responsible for the organization and coordination supervision and inspection and infor-

system. During the reporting period the Company obtained Occupational

mation communication of the Occupational Health Management Committee. Health and Safety Management System certification.(located within the Safety and Envi-

ronmental Protection Department)

Responsible for the implementation inspection rectification and documentation of

Execution Level occupational health work.Dedicated Occupational Health Information transmission and closed-loop supervision across all levels are achieved

Management Personnel through regular meetings reporting systems and inspection feedback mechanisms en- Sichuan Changhong Occupational Health and

suring the effective operation of the occupational health and safety management system. Safety Management System Certification Certificate115 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 116

Testing of Occupational Disease Hazard Factors Progress in Reporting

Indicators Targets for 2025

Period

In strict accordance with the Law on the Prevention and Control of Occupational Diseases of the People’s Republic of China the Company The number of work-related fatalities the num-

has established a regular testing mechanism for occupational disease hazard factors. We conduct comprehensive inspections of the Com- ber of occupational disease cases and the inci- 0 Completed

pany (including Changhong China Smart Display and the Energy and Utilities Center) every three years through qualified third-party testing dence rate of occupational diseases were

organizations.For subsidiaries regular testing of occupational disease hazard factors in workplaces is conducted. A total of 4045 testing points were as- Occupational disease hazard factor detection rate 100% Completed

sessed with a 100% compliance rate.Occupational health surveillance compliance rate 100% Completed

Occupational Health Examinations

The Company conducts occupational health examinations in accordance with the law. For positions exposed to key occupational hazards—

including 1637 employees exposed to chemical hazards 694 to dust 1070 to noise 403 to high temperatures and 116 to radiation—risk

assessments on-site testing and health surveillance are conducted. Targeted measures are implemented based on the characteristics of

occupational hazards including engineering controls management measures and personal protective measures. Work Safety

During the reporting period occupational health examinations were conducted for 9302 employees in hazard-exposed positions achieving

a 100% examination rate.During the reporting period Work Safety Management System

The Company has established a comprehensive system of work safety management policies including the Safety Production Supervision and

occupational health examinations were conducted for 9302 achieving a 100 Management System the Work Safety Performance Assessment Management System and the Work Safety Meeting System. A Work Safety % Committee composed of senior management and department heads is responsible for decision-making and supervision of work safety. An

employees in hazard-exposed positions examination rate. Office of the Work Safety Committee has been set up within the Safety and Environmental Protection Department to coordinate implementa-

tion and information communication. Dedicated work safety management personnel are assigned to carry out inspections patrols and risk

screening. In 2025 the company had a total of 20 units maintaining valid ISO 45001 system certification.Work Safety Risk Management Mechanism

Occupational Health Training

The Company has established the Measures for the Graded Control of Work Safety Risks forming a complete management system covering

identification assessment monitoring and response.The Company actively organizes occupational health training. During the reporting period 94 occupational health practitioners and 45648

on-the-job employees received occupational health training.Using a normalized company-wide participation approach each unit carries out step-by-step end-to-end

Risk risk identification in accordance with its plan and conducts systematic screening based on standards such

Employee Consultation Identification as the Guidance Manual for the Identification and Prevention of Major Hazardous Factors in Industrial and

Trade Sectors.The Company involves employees in the optimization of occupational health management and actively solicits their feedback. For example in

the selection and upgrading of personal protective equipment frontline employees are invited to conduct on-site trials and provide feedback

to ensure both effective protection and user comfort.Risk Identified risks are assessed and graded using the LEC risk assessment method and classified into four

Assessment levels: major relatively major general and low risks.Metrics and targets

The Company continues to improve its occupational health and safety management system benchmarks against industry best practices to Differentiated control measures are adopted for risks of different levels. Major risks are directly controlled Risk Manage-

optimize systems and processes strengthens OHS training and awareness across all employees prevents major and severe safety accidents by the Company and are subject to dedicated emergency response plans while lower-level risks are man-ment and Control

reduces occupational health risks safeguards employees’ physical and mental well-being and creates a safe healthy and compliant working aged and controlled by workshops or teams.environment.117 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 118

A multi-level normalized risk monitoring and inspection mechanism has been established. Differentiated in-

Risk spections are conducted based on management units such as the Company platform departments quasi-in-

Monitoring dependent accounting units manufacturing plants and teams. Technical measures including online monitor-

ing and video surveillance are comprehensively applied to continuously enhance risk monitoring capabilities.All risk points are subject to dynamic management and regular annual review and assessment to ensure

Risk

the continued effectiveness of control measures. In addition a “one enterprise one file” record-keeping

Review

system has been established to enable the registration updating and reporting of risk information.Investigation and Remediation of Work Safety Hazards Changhong Smart Display (China) Co. Ltd. carried out a fire emergency drill.The Company has formulated the Hazard Identification and Rectification Management System and the “Dual Reporting” System for Hazard

Identification and Major Hazard Rectification establishing a three-tier hazard identification mechanism at the Company workshop and team

levels and promoting full employee participation through a combination of “hazard identification + reporting incentives”. Hazards are man-

aged on a graded basis and are classified according to risk severity into general hidden hazards and major hidden hazards. General hidden

hazards are required to be rectified promptly. For major hidden hazards dedicated action plans are launched with follow-up supervision by

the Safety and Environmental Protection Department. The Company strictly implements the rectification process featuring designated re-

sponsibility measures funding timeline and contingency plan so as to ensure full closed-loop management.During the reporting period

The Company identified Rectified Employees proactively reported he Company also identified and

14017 13790 1344 various haz- rectified 16 major accident

work safety hazards of them. ards for which rewards totaling hazards.RMB 171000 were granted In 2025 Changhong Development organized four emergency evacuation drills with more than 200 participants.Safety Emergency Management Development of Safety Culture

The company has established the Emergency Rescue Plan and Emergency System Management Regulations. In 2025 the Company updated Upholding the principle of “safety first and life above all” the Company carried out a series of themed activities including Work Safety Monthits Emergency Response Plan for Production Safety Accidents specifying five key stages: “information reporting – response grading – emer- Fire Safety Publicity Month and the Ankang Cup competition. During the year the Company collected 1750 rationalization proposals verifiedgency activation – organized response – post-incident handling”During the reporting period the company headquarters and more than 20 2544 valid cases under the “Safety Whistleblower” initiative organized an emergency skills competition with 34 teams competing on the

subsidiaries completed work safety emergency exercises. thereby establishing a closed-loop management process from early warning to same stage and selected four group-level teams as “Ankang Demonstration Teams” thereby systematically building a safety culture system

recovery. featuring full participation and practical orientation.119 ESG Report 2025 People-oriented Changhong Safeguarding Employee Growth 120

Safety Training

Case: Sichuan Changhong Mold and Plastic Tech Carried Out “Work Safety Month” Themed Activities

The Company has established the “Safety Training and Education Management System” and conducts systematic and targeted safety training

on a regular basis through diversified approaches that combine theory with practice and integrate online and offline formats. In doing so it

In June 2025 Sichuan Changhong Mold and Plastic Tech closely aligned with the theme of Work Safety Month and vigorously carried disseminates safety knowledge and skills reinforces safety awareness among all employees and enhances emergency response capabilities

out activities to enhance the safety literacy of all employees. During the event an online safety knowledge competition was held to thereby building a solid line of defense for the Company’s steady operations and employees’ peace of mind at work. In 2025 the Company

strengthen employees’ theoretical foundation. A total of 1235 employees actively participated with 3710 cumulative entries submitted. ensured effective training coverage for both critical safety posts with a 100% pass rate.Each production unit also produced short safety videos based on job-specific risks using innovative communication methods to convey

positive messages on safe development. Through competition-based learning and culture-based engagement the event embedded

safety knowledge deeply among employees and translated it into practical action significantly enhancing the risk prevention awareness

Specialized training for principal persons in charge: Training for safety management personnel:

and emergency response capabilities of all staff.

100person-times 248 person-times

An online safety knowledge competition was conducted to strengthen employees’ theoretical foundation with a

Training for occupational health management personnel: Training for hazardous chemicals warehouse administrators:

total of 1235 participants and 3710 cumulative participations. 94 person-times 201 person-times

Training for personnel supervising special operations: Safety training for new employees:

268 person-times 87150 person-times

Training for on-the-job employees:

148682 person-times

Work Safety Indicators and Targets

Progress in Reporting

Indicators Targets for 2025

Period

Implementation rate of the “three simultaneous” requirements

for safety environmental protection and occupational health in 100% Completed

new modified and expanded construction projects

Pre-job safety training pass rate for newly recruited transferred

100% Completed

and reinstated employees

Major work safety accidents 0 Completed

Work safety investment in 2025 - RMB 66.963 millionResponsible

Changhong 05

Empowering Synergistic Development

Sichuan Changhong remains committed to the mission

and responsibility of a state-owned enterprise. Guided

by the vision of “Responsible Changhong” it continues

to deepen diversified social responsibility practices

advance the responsible supply chain ecosystem promote

industrial synergy and co-creation support all-around rural

revitalization and fulfill its social responsibilities through

coordinated action.Deepening the Responsible Supply Chain Ecosystem 123

Supporting All-around Rural Revitalization 135

Actively Fulfilling Social Responsibilities 138

Respond to the United Nations Sustainable

Development Goals123 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 124

Deepening the Responsible Supply Chain Ecosystem Company leadership

Platform management Business units

Sichuan Changhong strictly adheres to the principles of responsible procurement actively promotes supplier diversification and empow-

ers SME partners on an equal basis through fair and transparent procurement policies resource support and capability building. In doing

so the Company builds an open collaborative mutually beneficial and sustainable value network and guides the industrial chain toward

coordinated and responsible development. The Company has joined the Electronics Industry Supply Chain Branch of the China Federation Other Business

of Logistics & Purchasing and serves as a vice chair unit. Management BU1 BU2 BU3 ...... Units

support Procurement operations quality technology

Supply Chain Manage- supplier management etc.ment Center

Service and

Resource Management supervision

Group Procurement Procurement Procurement Procurement

Team 1 Team 2 Team 3 Team 3

Supply Chain Governance Policy System

In accordance with the Code of Conduct of the electronics industry issued by the Responsible Business Alliance for the electronics industry

the latest ISO 9001 Quality Management System standards and laws and regulations including the Civil Code of the People’s Republic of Chi-In January 2025 it received the 2024 Outstanding Case Award In October 2025 it was honored as a “China na the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests the Product Quality Law of the People’s Re-for the Electronics Industry Supply Chain from the Electron- Supply Chain ESG Management Demon- public of China the Telecommunications Regulations of the People’s Republic of China and the Anti-Unfair Competition Law of the People’sics Industry Supply Chain Branch of the China Federation of stration Enterprise”. Republic of China the Company has established a core institutional system for full lifecycle supplier management featuring a “one-beamLogistics & Purchasing. four-pillar” structure and has continued to revise and improve it.In 2025 the Company revised a total of seven supplier management documents optimized and improved management requirements for the

supplier blacklist supplier admission and supplier evaluation and rebuilt one supplier evaluation model.In July 2025 it was selected as an exemplary case for inclusion In December 2025

in the 2025 Report on the Development of Digital and Intelli- it won the 2025 Annual Award for Industrial

gent Procurement and Supply Chains. Internet.Demand and Sourcing and

Supply Chain Risk Planning Admission Supplier Tiered

Management Standards Procurement Resource Supplier Sourcing and Management Standards

Demand and Planning Admission Manage- (Trial)

Intermediary Management Standards Management Stand- ment Policy Administrative Measures for Supplier Au-

for Productive Materials dits for Productive Materials

Supply Chain Safety ards

Administrative Measures for Supplier Basic Supplier Administrative Measures for Performance

Admission for Productive Materials Management Evaluation of Productive Materials Suppliers

Administrative Measures for Supplier Policies Administrative Measures for Supplier

Agreement Management Change Management

ODM/OEM Supplier Management Administrative Measures for Supplier

Organizational Structure for Supply Chain Management

Guidelines (Trial) Incentives and Cooperation and Blacklist Management

Exit Evaluation

The Company has established and further improved its supply chain management system. Senior management is responsible for the review

approval decision-making and top-level design of supply chain management. Supply Chain Management Center of the Company takes the Supplier Incentive Supplier Cooperation

lead in the development and supervision of the procurement and supply chain management system and advances in an orderly manner the and Exit Management and Evaluation Man-

three-step working mechanism of “institution building integration of digital and intelligent technologies and industrial synergy”. It is respon- Standards agement Standards

sible for establishing and improving the supplier management system promoting supplier management through the smart supply chain and

guiding and supervising business units in carrying out supplier management.125 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 126

Strategy 01 Supplier Admission

Impact

Risk Impact Resource screening: In accordance with the Administrative Measures for Supplier Admission for Productive Materials each unit

Financial Impact Dura- Mitigation Measures

Descripti on Level formulates screening rules based on the characteristics of its industry requiring potential suppliers to complete the Supplier Ques-

tion tionnaire and provide supporting materials covering multiple ESG dimensions including quality R&D supply chain environmental

protection and social responsibility.Short Establish a diversified supply mechanism and regu-

Production stagnation Revenue (decline) term larly assess supply risks.caused by supplier dis- Expenditure in- Medium

ruption Medium Establish safety stock and optimize inventory man-creased

term agement strategies. Compliance review: Suppliers may not be recommended under six circumstances including incomplete qualifications products

that have not obtained mandatory certification and failure to provide hazardous substance testing reports. Among these environ-

Short Enter into strategic cooperation with suppliers and mental compliance execution of quality agreements and hazardous substances control systems are treated as veto items.Fluctuation of raw ma- Expenditure term sign pricing agreements

Medium

terial price Increase Medium Enhance market price monitoring and adjust pro-

term curement strategies.Agreement execution: Suppliers that pass the review are required in accordance with the Administrative Measures for Supplier

Agreement Management to sign relevant agreements including the confidentiality agreement integrity cooperation agreement

safe operations agreement and corporate social responsibility agreement all of which include ESG-related provisions. By the end

Impact

Opportunity Impact of 2025 the Company archived nearly 55000 agreements online. We signed corporate social responsibility agreements with nearly

Financial Impact Dura- Mitigation Measures

Description Level 2000 suppliers and the signing coverage rate among suppliers in key areas reached 98.2%.tion

Medium

Implement supplier performance evaluations.term

Supply chain optimization Costs decreased Medium Advance supply chain digital transformation for op-

Long

erational efficiency. Supplier audits: For suppliers identified through assessment as requiring an audit the Company establishes an audit team to con-

term

duct on-site audits based on the RBA (Responsible Business Alliance Code of Conduct) and in accordance with the Administrative

Measures for Supplier Audits for Productive Materials. The audit scope includes ESG factors such as environmental protection

Medium Strengthen the publicity of supply chain risk man- (e.g. RoHS management system chemical safety equipment safety and health) corporate social responsibility (e.g. child labor

Resilient supply chain term agement to demonstrate resilience. and underage workers forced labor discrimination and disciplinary practices freedom of association and communication) and

attracting premium cli- Revenue increased Medium

Long Develop customized supply chain solutions for key business ethics (e.g. anti-corruption). Failure in any starred item results in an overall failure.ents

term accounts.

02 Supplier Performance Evaluation

Impact Risk and Opportunity Management Scope of performance Performance evaluation Performance evaluation

evaluation cycle factors

In accordance with the Supplier Coop- In accordance with the Administrative ESG-related indicators including sup-

Supply Chain ESG Management

eration and Evaluation Management Measures for Performance Evaluation pliers’ environmental performance

Standards the Company carries out of Productive Materials Suppliers the corporate social responsibility and

The Company has established a full lifecycle ESG management mechanism covering supplier admission review performance evaluation supplier performance evaluations in- Company conducts annual quarterly cybersecurity and information securi-

tiered management supplier coaching and exit. ESG factors such as social responsibility and environmental protection are incorporated into cluding risk assessments change as- and monthly evaluations on a regular ty performance are incorporated into

each stage. In 2025 the ESG control rate for supplier admission reached 100%. sessments performance evaluations basis. the evaluation.audits and blacklist evaluations.127 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 128

03 Tiered Supplier Management

Identification of supplier integrity risks

Based on supplier performance evaluation results the Company implements tiered and categorized management:

The Company routinely identifies supplier integrity risks. In 2025 it controlled 42 risk points in procurement activities and added

two new control links relating to supplier admission and exit.Grade A Grade B Grade C Grade D

Cooperation is strength- Continued coop- Procurement is restricted in volume. In Unqualified; the sup-

ened including increas- eration may be principle such suppliers may not serve plier’s qualification Supplier integrity surveys

ing procurement share maintained. as primary suppliers under a bidding status is revoked.and optimizing and ex- item. Supplier coaching should be pro- In 2025 the Company issued 568 questionnaires to suppliers received 139 responses collected 10 management suggestions and

panding the scope of ap- vided when necessary to improve the assigned them to the relevant responsible units for handling.plication. supplier’s overall capabilities.Supplier integrity supervision and handling

in 2025 Grade A and B suppliers accounted for more than 90% of the Company’s supplier base and the number of

During the high-quality suppliers increased significantly.reporting The Company collected and publicly released 10 issues of information through platform-based supervision channels received two

period In 2025 the consumer business group completed audits of 122 suppliers and provided coaching to more than 500 challenge-related issues and one complaint and handled three supplier challenges.suppliers.The Company imposed disciplinary sanctions on 13 suppliers suspected of bribing Company employees and additionally recovered

RMB 2.6 million.

04 Supplier Exit Mechanism

Procurement job rotation and declaration of conflicts of interest

In accordance with the Supplier Incentive The Company has also formulated the Administrative Measures for Sup- The Company implements a procurement job rotation mechanism. Procurement rotation has been digitized and includes cross-de-

and Exit Management Standards the Com- plier Blacklist Management and implemented supplier blacklist controls. partmental rotation while declarations of supplier-related conflicts of interest are also managed online. In 2025 the Company

pany has established an orderly supplier Suppliers that during due diligence bidding contract performance war- completed job rotation for 105 procurement personnel and completed 4024 declarations of conflicts of interest.exit mechanism strengthened the risk as- ranty fulfillment or other stages are verified to have engaged in violations

sessment and control of exiting suppliers of laws and regulations breaches of contract integrity failures disruption

and its involuntary. of order or other conduct that causes losses to the Company are included

in blacklist management prohibited from receiving new purchase orders

and subject to business suspension.Supply Chain Risk Management

The Company has standardized supplier risk management enhanced overall supply chain capabilities and safeguarded the security of supply

Integrity in Procurement resources. To this end it formulated the Specifications for Supplier Risk Management requiring each unit to establish supplier risk identifica-

tion assessment and early warning mechanisms routinely carry out supplier risk identification and assessment investigate latent supplier

The Company routinely carries out integrity management and integrity education and continues to foster a transparent and integrity-based risks classify risk levels and maintain a risk control ledger for its own unit. In the supplier risk management process the PDCA cycle shall

trading environment and build a transparent and integrity-based supply chain. be followed to ensure comprehensive identification accurate assessment proactive response and strong oversight thereby forming a closed

loop and enabling continuous improvement.Supply Chain Digitalization

Integrity education and training for procurement personnel

Based on a full lifecycle supplier management model and using the integration of digital and intel-

The Company continues to expand the scope of integrity education. In 2025 it conducted two rounds of full-coverage education

ligent technologies as the means the Company has built a smart supply chain system that enables

for employees in procurement positions centrally organized three integrity-themed film-viewing activities for all employees and

end-to-end digitalized management covering resource demand and deployment supplier sourcing

compiled a 30000-word procurement integrity education reader covering 15 categories of procurement-related integrity laws and

and onboarding cooperation and evaluation and incentives and exit. The Company fully launched its

provisions 15 integrity cases and four categories with nine integrity measures.online smart supply chain system in 2025. In 2025 all 110 procurement units across the Company

fully applied all functional modules of the supplier management system.129 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 130

Case: Sichuan Changhong Supports the Development of a Green Industry Ecosystem

Digital Supply Chain

Control Tower

In May 2025 the Sichuan Green Building Materials Industry Chain Supply and Demand Matchmaking Conference was convened. Sichuan

Business Business Ear- C o m p l i a n c e Changhong as one of the leading enterprises in the green building materials industry chain in Sichuan Province was invited to attend.Supervision ly Warning Inspection

The Company delivered a keynote speech titled “Co-building a Green Ecosystem and Intelligently Creating a New Industrial Future”

Execution Moni- Price Compari- D e c i s i o n and officially launched its “Smart Home” product series at the conference. The successful convening of this conference established an

toring son Alerts Supplier Risk Support efficient and pragmatic cooperation platform for upstream and downstream enterprises in the green building materials industry chain in

Sichuan Province. It is of significant importance for building a more resilient and competitive green building materials industrial ecosys-

Operations tem and promoting the high-quality coordinated development of the construction and building materials industries.B u s i n e s s

Management Execution

Dashboard Basic Business Panoramic Multi-scenar- Reports

Analysis View Dash- io Analysis

board

Digital Supply Chain

Cockpit

Foundational Procurement

management Procurement Sourcing and Procurement settlement

Demand Pricing execution

Full lifecycle management

of suppliers

Supplier Risk

Cost Performance Settlement Model

Model Evaluation Price Cap Discount Terms Mod-

Model Evaluation Model Model el Changhong’s “Smart Home” product series was showcased at the Sichuan Green Building Materials Industry Chain Supply and De-Model

mand Matchmaking Conference.Digital System Architecture Diagram

Supply Chain Labor Management

Green Supply Chain

The Company requires suppliers to sign the supplier corporate social responsibility agreement which incorporates labor requirements—such

Focusing on benchmarking against industry requirements for green supply chain management the Company has continuously advanced as freely chosen employment prohibition of child labor and protection of minors working hours compensation and benefits humane treat-

green supply chain development by establishing and improving supplier admission and control standards for the green supply chain strength- ment and non-discrimination—into binding clauses. At the same time in accordance with the specifications for supplier risk management

ening the implementation and communication of green supply chain control standards and ensuring that the supply chain remains compli- the Company conducts normalized management of supplier labor risks. Where violations of contractual requirements—such as excessive

ant efficient and sustainable thereby achieving coordinated economic and environmental benefits. overtime—are identified during routine supervision inspections or audits an early warning mechanism is activated requiring suppliers to

complete rectification within a specified timeframe with follow-up tracking until full correction is achieved. Where serious forced labor is con-

firmed cooperation is immediately terminated the supplier is included in the Company’s supplier blacklist and a company-wide notification

is issued. The Company adheres to comprehensive identification accurate assessment proactive response and robust supervision forming

a closed-loop management process with continuous improvement.Screening stage Audit stage

Potential suppliers are re- Review stage The audit covers the RoHS management

quired to disclose informa- Suppliers that fail to provide hazardous system design and change manage-

tion on product hazardous substances control test reports may not ment supplier management and pro- Supply Chain Training and Engagement

substances control and the be admitted. Environmental compliance curement inspection and testing and

enterprise’s environmental and hazardous substances control sys- nonconforming product control. Failure

performance. tems are treated as veto items. to clearly define environmentally haz- To promote the integration of ESG concepts into industrial chain supply chain and value chain management the Company actively encour-

ardous substances and formulate rele- ages suppliers to jointly fulfill responsibilities and build an ESG ecosystem. In 2025 the Company actively participated in promoting the de-

vant control requirements will result in velopment of the China Supplier ESG Rating Platform organizing nearly 30 suppliers to join the platform and participate in ESG ratings. The

an unsuccessful audit. Company was also awarded the title of “China Supply Chain ESG Management Demonstration Enterprise”.131 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 132

Supplier coaching and training Development of Supplier ESG Standards

Through technical and quality improvement training as well as on-site coaching the Company has provided nearly 7000 targeted capability In 2025 the Company participated in the formulation of two ESG standards: Guidelines for Supplier ESG Evaluation and ESG Management

enhancement initiatives to nearly 1000 suppliers over the past three years further upgrading the overall capability of the supply chain. Requirements for Corporate Supply Chains. These efforts help enterprises mitigate international trade barriers improve ESG governance

effectiveness and fill gaps in domestic standards for supply chain ESG management.Standard Name Date of Issuance Standard Category Lead Institution

Case: Changhong Global Core Supply Chain Partners Summit 2025

Guidelines for Supplier ESG Eval- China Enterprise Reform andIn April 2025 the Company hosted the “2025 Changhong Global Core July 18 2025 National Association Standarduation (T/CERDS 17-2025) Development SocietySupply Chain Partners Summit”. At the summit systematic training

was provided to 130 participating suppliers on key supplier-related

aspects of the Company’s quality management system including fun-

damental principles core policies management standards adminis- ESG Management Requirements China Enterprise Reform and

trative measures and implementation guidelines. October 24 2025 National Association Standardfor Corporate Supply Chains Development Society

Metrics and targets

Supplier engagement and empowermentThe Company actively responds to the green transformation of the supply chain and has incorporated “promoting collaborative carbon reduc-tion among upstream and downstream partners” into its 2021–2030 strategic plan. The Company has clearly stipulated that by 2030 100% of

The Company actively engages with suppliers on a range of topics including ESG to continuously strengthen their capabilities and support

supplier admission processes will embed social responsibility commitment mechanisms. As of the end of the reporting period the consumer

their development while fostering collaborative growth.business group has achieved full coverage of supplier social responsibility commitments.Case: Sichuan Changhong Participates in Initiating an ESG Rating Platform Progress in Re-Indicators Targets for 2025 2025 Performance

porting Period

As one of the first initiating members of the China Supplier ESG Rating Platform Sichuan Changhong leverages its role as a leading Supplier ESG control rate 100% 100% Completed

enterprise in the industrial chain to demonstrate leadership and promote best practices. The Company has encouraged suppliers to

establish and improve ESG governance systems invited and organized nearly 30 suppliers to join the platform and participate in ESG Establish a normalized supplier risk management mech-

100% 100% Completed

ratings helping suppliers identify their ESG strengths and weaknesses improve ESG performance in a targeted manner and enhance anism and provide early warnings for procurement risks

their competitiveness in international markets.Completion rate of supplier supervision and audits for the

100% 100% Completed

consumer business group

On-time completion of supplier performance evaluations

100% 100% Completed

for the consumer business group

Completeness of technical quality and other agreements

98% 98.2% Completed

for suppliers under the consumer business group133 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 134

Responsible Sourcing of Conflict Minerals In March 2025

The Company participated in the Appliance

In the normative appendix template for supplier corporate social responsibility agreement under the Supplier Agreement Management & Electronics World Expo (AWE) in ChinaPolicy The Company requires suppliers to commit to avoiding the use of conflict minerals. Suppliers shall ensure that all metals used where it launched its first “healing-orient-in or contained in the products and their packaging delivered to the Company are not sourced from the Democratic Republic of the Con- ed” AI TV and PRO shared air conditioning

go (DRC) or its adjoining countries or from areas within these countries controlled by armed groups. At the same time suppliers are solution for integrated living and dining

required to strengthen supply chain management by establishing relevant management systems and procedures to effectively identify spaces combining home appliances with AI

and trace the origin of raw materials ensure the legality of sourcing and prevent the use of conflict minerals. to empower smart living.Equal Treatment of SMEs

The Company has formulated the Basic Management System for Procurement of Materials and Services and the Basic Supplier Man-

agement System which explicitly require that procurement activities and supplier selection onboarding business execution and eval-

uation adhere to the principles of openness fairness impartiality and integrity the “Four Principles” ensuring equal treatment of all In September 2025

enterprises. During the reporting period the Company maintained a 100% on-time payment rate for supplier payments with zero

overdue payments. The Company has maintained “zero” adverse credit records in authoritative regulatory systems such as the National The Company made the global debut of

Enterprise Credit Information Publicity System. its panda-themed home appliances at the

IFA (International Consumer Electronics

Show) in Berlin Germany. By integrating

the cultural symbol of the giant panda with

cutting-edge AI technology the Company

Promoting Industrial Synergy and Co-creation transforms AI-powered home appliances

into cultural ambassadors that convey the

charm of Chinese culture to the world.Driven by technological innovation and ecosystem collaboration Sichuan Changhong actively promotes high-quality and sustainable

development across the industry.In January 2025 In October 2025

The Company showcased the world’s first The Company participated in the 138th Chi-

AI TV AI refrigerator AI air conditioner and na Import and Export Fair (Canton Fair)

AI smart home solutions at the Consumer presenting a full range of AI home appli-

Electronics Show (CES) in Las Vegas USA. ances—including AI TVs AI air conditioners

AI refrigerators and AI washer-dryer sets.These products demonstrate a smarter

more comfortable and more sustainable

lifestyle for global consumers.135 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 136

Supporting All-around Rural Revitalization 081 Electronics Group

Focusing on the development needs of Qingsong Village in Shima Town Mianyang Sichuan Province the Group provided assistance

During the reporting period Sichuan Changhong strictly implemented the objectives and requirements set forth in policy materials valued at over RMB 24000 distributed fertilizers to support spring farming and carried out Spring Festival consolation

frameworks such as the Work Plan for Foundational Assistance to Promote Revitalization and Development of Less-devel- activities. It also invested RMB 10000 in the renovation of public toilets to improve the living environment. In addition it facilitated

oped Regions and the Work Plan (2024–2027) for Foundational Assistance to Promote Revitalization and Development of transportation subsidies totaling RMB 151800 for 174 individuals from formerly impoverished households seeking employment

Less-developed Regions. Focusing on areas including industrial upgrading talent cultivation cultural development organ- across regions helping to stabilize income growth.izational strengthening and consumption-based assistance the Company supported less-developed regions in advancing

toward sustainable development and comprehensively contributed to rural revitalization in assisted areas.Changhong Real Estate

Rural Revitalization Working Mechanism The Company continued to contribute to rural development and employment support. First in terms of consumption-based as-

sistance it purchased and helped sell nearly RMB 60000 worth of agricultural and sideline products from designated assistance

The Company established a rural revitalization assistance leading group headed by the chairman of the board formed a coordinated support regions in 2025 and provided venues for product sales supporting rural revitalization. Second in terms of employment assistance

mechanism featuring centralized corporate decision-making implementation led by the labor union and coordinated advancement by in- it offered targeted job opportunities for individuals from Wenchuan and Maoxian County in Sichuan Province successfully employing

dustrial units. At the same time the Company formulated and implemented a series of assistance plans and programs clearly defining as- two local residents in stable positions thereby contributing to local livelihood improvement.sistance objectives pathways and measures. Allocate special funds annually to support assistance projects and regularly dispatch company

employees to carry out on-site village assistance work.Changhong Kuaiyidian

Rural Revitalization Initiatives

In supporting the development of rural specialty industries the Company organized technical personnel to provide volunteer ser-

vices based on local needs. A total of more than 30 electrical devices for village committees and residents were repaired ensuring

the proper functioning of relevant facilities and providing technical support for the promotion and operation of local specialty indus-

Industrial assistance tries. In addition through specialized training on digital office skills covering more than 20 village representatives the Company

effectively enhanced grassroots digital application capabilities laying a foundation for cultivating local talent and and enhancing

RMB 2.7 million was donated for the introduction of high-quality breeding livestock promoting the upgrading of the yak industry employability skills.and supporting breed improvement.Educational assistanceThe Company donated RMB 1 million to an education fund in key rural revitalization assistance areas to support the “One Village OnePreschool” initiative and strengthen the teaching workforce in compulsory education. In addition the Company invested RMB 1.4878

million to organize four “Seven-Colored Changhong” winter and summer camps for teachers and students involving a total of 262 par- Case: Smart Agriculture

ticipants. The camps were held in cities including Mianyang Chengdu and Beijing aiming to enhance patriotism education.Cultural assistance Changhong Hongxin has made breakthroughs in crop

model-based irrigation technology. By leveraging dy-

RMB 1 million was donated for the construction of educational and awareness bases fostering cultural branding and practice plat- namic data collection algorithms and crop growth

forms and promoting the development of cultural and tourism industries in remote and high-altitude areas of Sichuan Province. stage-specific models it generates irrigation solu-

tions that achieve water and fertilizer savings there-

Organizational assistance by strengthening the foundation for strategic product

development. Crop Model-based Irrigation Technolo-Through paired cooperation initiatives RMB 186000 was invested to organize 40 grassroots reserve talents from remote and gy——Using a self-developed “dynamic crop environ-high-altitude areas and 40 village-level backbone personnel from Pingwu County to participate in study and exchange programs mental data collection algorithm” the system calcu-

in Mianyang. Training was conducted through theoretical instruction on-site visits and seminars covering topics such as village lates field water evaporation and establishes models

cadre performance digital village development smart agriculture and rural tourism. for water and fertilizer requirements across different

crop growth stages. This enables a closed-loop pro-Consumption-based assistance cess of “data collection – data analysis – irrigation ex-ecution” generating dynamic irrigation solutions. The

The Company fully leveraged its online platform “Hongchuang Youpin” to strengthen promotion and marketing efforts. Offline channels in- technology achieves an average water-saving rate of

cluding the labor union system platform and free direct-sale stores for agricultural specialty products in assisted areas were used to support 30% per mu and a fertilizer-saving rate of 25%.product sales. A total of RMB 11.601 million was spent on purchasing local agricultural and livestock products such as tea yak meat and

cured meat products. These efforts helped expand and upgrade local agricultural and pastoral enterprises and benefited 6633 local residents.137 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 138

Actively Fulfilling Social Responsibilities

Case: Supporting Talent Revitalization

Sichuan Changhong consistently integrates the fulfillment of social responsibilities into its corporate development strategy

In six assisted villages in Pingwu County the Company awarded scholarships to 23 students admitted to higher-level educational

focusing on community services and public welfare initiatives and contributing positively to sustainable economic and social

institutions encouraging them to pursue academic excellence serve as role models and contribute to their hometowns society

development.and the nation in the future thereby injecting new vitality into rural revitalization.Public Welfare and Volunteer Services

In 2025 the Company and its subsidiaries actively engaged in public welfare initiatives. Through activities such as voluntary blood donation

care for the elderly and children and afforestation the Company demonstrated its commitment to corporate social responsibility.Public Welfare Blood Donation

The Company actively

participated in voluntary

blood donation cam-

paigns conveying hopefor life through a “relay ofScholarship awards were granted to 23 students in Pingwu County. compassion”.Case: Promoting Industrial Development

The Company conducted field visits to the Xinqiao vegetable base the golden cypress and coptis chinensis industry the Ronghua

Village small chili pepper base and local homestay industries. The Company also carried out in-depth research in Jiaozishan

Village Bazi Village Huazui Village and Libao Village assessing the current status and future plans of collective economic devel-

opment and provided guidance and recommendations for industrial development in each village.Volunteer Services

The Company organized

volunteer activities at the

Mianyang Social Welfare

Institute carrying out a

themed initiative titled“Respecting the Elder-ly on the Double Ninth

Festival and Spreading

Warmth in the GoldenAutumn” delivering care

and support to elderly

residents.139 ESG Report 2025 Responsible Changhong Empowering Synergistic Development 140

Child Care Improve the Community Environment

Sichuan Kuaiyidian or-

In 2025 the Company’s general management department carried out a public welfare activity in Jiangyou City under the theme

ganized a themed Party

“Learn from Lei Feng Promote New Values Protect Green Mountains and Build a Clean Environment through Civilized Action”.Day activity titled “WarmThe initiative contributed to local environmental protection efforts creating a more comfortable and greener environment for both

Hearts in Winter Protect-

residents and visitors.ing Childhood” at the Mi-

anyang Children’s Welfare

Institute.Participation in Community Co-development

The Group takes a proactive approach to partnering with the community fostering a collaborative development model that builds a har-

monious supportive and thriving community ecosystem and contributes to improving residents’ quality of life and promoting community

prosperity.Enhance Community Convenience

In 2025 Changhong Air Conditioner collaborated with the Huigong supply and marketing cooperative in Fugong Township Fucheng

District Mianyang to develop the “Mianxiaogong” fresh produce retail project. Leveraging an “Internet + grocery basket” modeland adopting a supply chain approach of “direct sourcing from surrounding production areas + warehousing and packaging + dailydistribution” the project provides employees and nearby residents with 24-hour smart and convenient retail services enhancing

community accessibility and convenience.Outlook

Looking ahead Sichuan Changhong will remain committed to its mission of “Technology-driven Changhong Creating a Better Life”. With talent development and responsibility as the foundation we will continue to build a harmonious and mutually reinforcing internal

With high-quality development as its core focus we will continue to promote industrial structure optimization and enhance operational ecosystem and social connection. We will further improve our compensation and benefits system and talent development framework

quality and efficiency. We will comprehensively embed ESG principles into its corporate strategy and daily operations working together enhance talent mobility and training mechanisms and safeguard employee rights and career development. At the same time adhering

with employees customers partners and all sectors of society to address challenges seize opportunities and steadily advance toward to a customer-centric approach we will strengthen product quality supervision and enhance service experience actively engage in

becoming a world-class enterprise contributing to sustainable social development. public welfare and community development and effectively fulfill our responsibilities as a corporate citizen.We will continue to drive innovation and global expansion strengthening technological leadership and brand upgrading. We will increase With sound governance and robust risk control as the safeguard we will continue to consolidate a compliant and resilient operational

investment in R&D focusing on frontier technologies such as artificial intelligence the Internet of Things and big data to build a more foundation. We will further optimize our governance structure enhance the functions of the Board of Directors and specialized

competitive smart home ecosystem and effectively address user needs through technological innovation. At the same time we will committees and improve the ESG management system and information disclosure. We will comprehensively advance the development

deepen its global presence enhance brand development through innovative marketing and quality improvement actively respond to of our compliance and risk management system strengthen intellectual property protection and legal risk prevention and control

the national policy on the replacement of old appliances with new ones and promote the dual upgrading of industry and consumption. and reinforce internal control audit and supervision mechanisms to ensure steady and sustainable development within a framework

governed by the rule of law.Guided by green transformation and low-carbon operations we will actively address climate change and fulfill its environmental

responsibilities. Centered on our carbon neutrality strategy we will continue to advance energy conservation and carbon reduction We firmly believe that guided by a clear strategy supported by a robust execution system and driven by the collective efforts of

green manufacturing and clean energy utilization accelerate the development of green factories and zero-carbon factories and all Changhong employees we will continue to achieve new breakthroughs on the sustainable development journey create value for

systematically implement carbon footprint management. Through digitalized energy and carbon management and the introduction stakeholders and contribute to a better and greener future.of new technologies we will reduce carbon emission intensity and promote harmonious coexistence between its operations and the

ecological environment.143 ESG Report 2025 Appendix 144

Appendix

Indicator Name Unit 2023 2024 2025

Natural gas

Key Performance Indicators — Environmental Dimension4 Consumption 10000 m3 1588.27 1817.02 2061.73

Classification

by Energy Total Purchased Electricity 10000 kWh 44163.69 54969.58 59964.58

Type Consumption

Response to Climate Change Total Purchased Steam

GJ 125233.80 119222.50 165636.48

Consumption

Total Clean Energy Consumption 10000 kWh — — 12549.37

Indicator Name Unit 2023 2024 2025 Green Electricity

Consumption within 10000 kWh — — 12111.78

Total Greenhouse Gas Emissions tCO2e 235000.70 260098.03 264252.95 Classification Purchased Electricity

Scope 1 Greenhouse Gas Emissions5 tCO2e 33649.31 43190.73 46424.36

by Type

Self-generated solar

10000 kWh 600.38 824.00 437.59

power usage

Scope 2 Greenhouse Gas Emissions6 tCO2e 201351.39 216907.31 217828.59

Kg CO e / RMB 10000

Greenhouse gas emission intensity 2 43.21 39.77 38.36

output value Water Resource Utilization8

Greenhouse Gas Emissions per RMB tCO2e/ RMB 1000000 2.41 2.51 2.44

1000000 Revenue revenue Indicator Name Unit 2023 2024 2025

Greenhouse Gas Emissions Reductions7 tCO2e — — 68851.39 Total Water Withdrawal ton 12170084.11 14292610.12 20899741.16

Purchased

ton —— 2925742.51 3773404.16

Classification by Fresh Water

Energy Utilization Source Circulating

ton —— 11366867.61 17126337.00

Water Usage

Total Water Consumption ton 11175127.32 13121057.95 19736326.68

Indicator Name Unit 2023 2024 2025

9 t / RMB 1000000 Water consumption intensity 2.05 2.01 2.87

Total Energy Consumption tce 81424.86 97806.51 102882.90 output value

Comprehensive Energy Consumption

tce / RMB 1000000 1.50 1.50 1.49 Environmental Compliance Management

per RMB 1000000 Output Value

Petrol

Classification Consumption

ton 144.89 144.33 154.22 Indicator Name Unit 2023 2024 2025

by Energy Type Diesel oil Total Environmental Protection

Consumption ton 548.81 541.93 431.67

RMB 10000 4335.66 6057.63 4333.62

Investment

Proportion of Environmental Protection

%0.0440.0580.040

4. In 2025 the reporting boundary for Greenhouse Gas Emissions total energy consumption water consumption pollutants and waste covered all domestic production units Investment to Operating Revenue

including Sichuan Changhong Battery 081 Electronics Group Sichuan Changhong Mold and Plastic Tech Changhong NeoNetTechnologies Changhong China Smart Display

Sichuan Changhong Packing & Printing Sichuan Changhong Precision Electronics Technology Sichuan Changhong Component Technology Changhong Air Conditioner Total Number of Participants in person-times 25142 27848 33758

Changhong Meiling Changhong Jijia Precision Industry Changhong Huayi Guangdong Changhong Electronics and Zhongshan Changhong Electronics. The reporting Environmental Training

boundary for 2024 and prior years is presented in the ESG reports of the respective years.Amount of fines for major admin-

5. Scope 1 Greenhouse Gas Emissions are measured in accordance with the Greenhouse Gas Protocol A Corporate Accounting And Reporting Standard (2004) and primarily

result from the consumption of diesel gasoline and natural gas during production processes. istrative penalties or criminal lia-

6. Scope 2 Greenhouse Gas Emissions are calculated on a location-based approach in accordance with the Greenhouse Gas Protocol A Corporate Accounting And Reporting bilities imposed by ecological and RMB 0 0 0

Standard (2004) and include purchased electricity and heat. Carbon emission factors are derived from the Electricity Carbon Dioxide Emission Factors 2023 released by the environmental authorities due to

Ministry of Ecology and Environment and the National Bureau of Statistics on December 31 2025. When calculating carbon emissions from purchased electricity for production environmental incidents

units in different provinces the corresponding provincial grid emission factors are applied.

7. Greenhouse gas emission reductions represent the avoided carbon emissions attributable to the use of green electricity and self-generated photovoltaic power. 8. Due to updates in the methodologies for calculating certain indicators the data for 2023 and 2024 have been correspondingly restated.

9.In addition as a result of the expansion of the reporting boundary water consumption intensity increased in 2025.145 ESG Report 2025 Appendix 146

Pollutant emissions Indicator Name Unit 2023 2024 2025

t/RMB 10000 output

Hazardous Waste Generated 0.08 0.07 0.07

value

Indicator Name Unit 2023 2024 2025

General Industrial Solid Waste Discharge t/RMB 10000 output

Air Pollutants 1.82 1.94 1.69per RMB 1000000 Output Value value

Exhaust Gas Emissions 10000 m3 566403.78 801630.38 692927.94 Hazardous Waste Discharge per RMB t / RMB 1000000

0.0450.040.04

1000000 Revenue revenue

Volatile Organic Compounds (VOCs) Kg 162603.85 196913.39 198202.34

General Industrial Solid Waste Discharge t / RMB 1000000

Nitrogen Oxides (NOx) Kg 11790.19 10451.57 12763.57

1.071.221.07

per RMB 1000000 Revenue revenue

Sulfur Dioxide (SO2) Kg 5042.82 2832.23 4021.71 Electronic Waste Generated ton 1329.94 1638.53 1551.02

Particulate Matter Kg 9608.32 8335.48 9379.05 Electronic Waste Recycled ton 1329.94 1638.53 1551.02

Water Pollutants

Electronic Waste Recycling Rate % 100 100 100

Industrial Wastewater Discharge ton 994956.79 1171552.17 1163414.48

Chemical Oxygen Demand (COD) Kg 37723.4 49959.08 37412.96 Circular Economy and Recycling

Ammonia Nitrogen Kg 4347.34 2009.31 3230.27

Total Phosphorus Kg 268.32 311.20 294.74 Indicator Name Unit 2023 2024 2025

Total Nitrogen Kg 11075.55 11216.47 10631.49 Total Waste Recycled and Reused ton 100507.29 127197.55 118140.88

Proportion of Waste Recycled and

%96.39796.6

Waste disposal Reused

Indicator Name Unit 2023 2024 2025 Key Performance Indicators — Social Dimension

Total Waste Generated ton 103003.71 131276.79 120721.12

Employee

Hazardous

Waste Generated ton 4163.22 4343.82 4501.49

(Hazardous Waste) Indicator Name Unit 2023 2024 2025

Classification

by Waste Type General Industrial Total number of employees Person 45443 45376 46886

Solid Waste

ton 98840.49 126932.97 116219.63

Generated (Non- Classification

hazardous Waste) Male Person 26142 25934 28139by Gender147 ESG Report 2025 Appendix 148

Indicator Name Unit 2023 2024 2025 Occupational Health and Safety

Classification

Female Person 19301 19442 18747

by Gender

Indicator Name Unit 2023 2024 2025

Employees aged

Person 8515 9648 10788

29 and below Number of Occupational Disease

Person 0 0 0

Cases

Employees aged

Person 12332 12292 12689

30–39 Incidence rate of occupational

%000

diseases

Classification Employees aged

Person 14291 13993 14692

by Age Group 40–49 Occupational Health Training person-times 26378 27707 45648

Employees aged

Person 6713 6205 5807

50–54 Training for occupational health person-times 196 242 94

management personnel

Employees aged

Person 3592 3238 2910

55 and above Occupational health examination

rate for employees in hazard- % 100 100 100

Chinese nationals Person 44617 44194 45712 exposed positions

Classification

by Nationality Compliance rate of occupational

Foreign nationals Person 826 1182 1174 % 100 100 100

disease hazard factor testing

Labor contract signing rate % 100 100 100 Pre-job safety training pass rate for

newly recruited transferred and % 100 100 100

Social insurance coverage rate % 100 100 100 reinstated employees

Occupational health surveillance

Proportion of female managers % 15.66 14.24 13.72 % 100 100 100

compliance rate

Localization rate of overseas employees % 96.61 97.46 89.90 Investment in work safety RMB 10000 1078 1484 6696.3

Employee Turnover Rate10 % — — 4 Work safety training for on-duty

person-times 45771 85154 148682

personnel

Number of Employee Training Sessions Time — 230000 278000

Production safety accidents

Time 0 0 0

Employee Training Expenditure RMB 10000 — — 2800 resulting in fatalities

Number of employee fatalities due

Employee Training Coverage Rate % — 100 100 Person 0 0 0to work-related incidents

Number of Employees Receiving

Person — 36 27 Physical examination coverage rate %

Assistance for Hardship 100 100 100

Employee Satisfaction % — —　 96 Number of identified safety hazards Nos. 8605 11372 14017

Rectification Completed Nos. 8459 11372 13790

10. The employee turnover rate is calculated based on the Company’s headquarters-level functional departments (including the Company’s Energy and Utilities Operation

Center).149 ESG Report 2025 Appendix 150

Supply Chain Security Product and Service Quality and Safety

Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025

Total number of suppliers suppliers 5792 6854 6155

Product recall incidents Time 0 0 0

Domestic supplier percentage % 99.83 99.42 99.12

Major product quality and safety

Localized domestic supplier percentage % 63.51 63.72 40.58 Time 0 0 0incidents

Percentage of domestic supplier

purchase amount to total supplier % 66.83 57.79 58.09 Customer satisfaction rate % 99.20 99.11 99.37

purchase amount

Proportion of Sustainably Certified Customer complaint rate % 0.19 0.19 0.15

%——91.00

Suppliers

Customer Complaint Resolution Rate % 100 100 100

Social Contribution and Rural Revitalization

ESG Data Table — Governance Dimension

Indicator Name Unit 2023 2024 2025

Investment in Rural Revitalization RMB 10000 - 1051.00 1796.18

Corporate Governance

Beneficiaries person-times - 6106 68230

External donation amount RMB 10000 - 442.20 200.00

Indicator Name Unit 2023 2024 2025

Number of donation beneficiaries person-times - - 66254

Number of Directors Person 9 9 9

Innovation-Driven Development

Aged over 50 5 5 5

Indicator Name Unit 2023 2024 2025 Classification Aged 30 to 50 Person 4 4 4

by Age Group

R&D investment RMB 10000 249048.16 260148.57 270445.78

Proportion of R&D investment in Aged under 30 0 0 0

%2.562.512.49

operating revenue

Authorized patents Number 842 843 831 Male 8 9 9

Classification

Authorized invention Number 342 324 240 Personby Gender

Female 1 0 0

New patent applications Number 1268 1322 1455151 ESG Report 2025 Appendix 152

Content Index

Indicator Name Unit 2023 2024 2025

Independent director Person 3 3 3 Report Directory GRI Standards SSE Guidelines for Page Sustainability Reports Number

Number of General Meetings of Shareholders Held Time 3 2 3 Reporting Guidelines 2-2、2-3、2-27 Article 1、Article 3、Article 4、Article 6 P3-4

Number of Board of Directors Meetings Held Time 19 18 23 Message from the Leadership 2-2、2-27 Article 2 P5-6

About Sichuan Changhong 2-1、2-2、2-27 — P7-10

Number of Nomination Committee Meetings Held Time 3 — 1

Sustainable Development Management 2-29、3-1、3-2、3-3 Article 5、Article 9、Article 12、 P11-18

Article 51 -53

Number of meetings held by the Remuneration 2025 Sustainable Development Highlights — — P19-20

Time 3 3 2

and Appraisal Committee

Optimizing the Corporate Governance System 2-9、2-10、2-11、2-12、2-13、2-14 Article 11、Article 12 P23-29

Number of meetings held by the Strategy

Foundations of Strengthening Internal Control and Risk Prevention 2-15、2-16、2-17、2-18

Article 14、Article 18 P30-34

Time — 1 1

Committee Changhong

Strengthening the Upholding Integrity and Ethical Business Conduct 205-1、205-2、205-3、206-1 Article 54-56 P35-38

Foundations for

Number of meetings held by the Audit Committee Time 10 6 6 Development Enhancing Investor Relations and Information Disclosure 2-23、2-24、2-27 Article 6、Article 9、 Practices P39-41Article 16-19

Number of meetings held by the ESG Management Practicing Compliant Tax Governance 207 Article 11、Article 14 P41-44

Time 1 3 2

Committee

Actively Addressing Climate Change 201-2、305-1~305-5 Article 20-28 P47-56

Strictly Complying with Environmental Regulations 2-27 Article 33 P56-59

Green Promoting Stable and Green Operations 305-6、305-7、306-1~306-5 Article 30、Article 31 P60-66

Changhong

Anti-Commercial Bribery and Anti-Corruption Advancing Low-carbon

Development Improving Resource Utilization Efficiency 302、303 Article 35、Article 36 P66-73

Developing a Circular Recycling Economy 301-2、301-3 Article 37 P73-74

Indicator Name Unit 2023 2024 2025 Strengthening Ecosystem and Biodiversity Protection 304 Article 32 P74

Total Number and Percentage of Directors Receiving Achieving Breakthroughs in Core Technologies 2-22、3-3 Article 42 P77-88

% 100 100 100 Innovation-driven

Anti-bribery and Anti-corruption Training Changhong

Driving Industrial Continuously Optimizing Customer Service 416-1、416-2 Article 47 P88-96

Upgrading

Total Number and Percentage of Management Strengthening Data Privacy Management 418-1 Article 43、Article 48 P96-98

Personnel Receiving Anti-bribery and Anti- % 100 100 100 Improving Fair Employment Mechanisms 401、405 Article 50 P101-104

corruption Training

People-oriented Safeguarding Employee Rights and Benefits 402、407、408、409 Article 50 P104-106

Changhong

Total Number and Percentage of Employees Supporting Employee

% 100 100 100 Development Empowering Comprehensive Employee Development 404 Article 50 P107-113

Receiving Anti-bribery and Anti-corruption Training

Ensuring Occupational Health and Safety(OHS) 403 Article 50 P113-120

Deepening the Responsible Supply Chain Ecosystem 204、308、414 Article 45、Article 46 P123-134

Responsible

Changhong

Anti-Unfair Competition Empowering Synergistic Supporting All-around Rural Revitalization 203、413 Article 39 P135-137

Development

Actively Fulfilling Social Responsibilities 201、413 Article 40 P138-140

Outlook — — P141-142

Indicator Name Unit 2023 2024 2025

Key Performance — — P143-151

Unfair Competition Time 0 0 0 Content Index — — P152

Appendix

Amount Involved in Litigation or Major Administrative Report Rating — — —

RMB 0 0 0

Penalties Arising from Unfair Competition Suggestions and Feedback — — —