CONTENTS
01 ECO-GOVERNANCE ECO-PLANETStrengthening the Leading the Low-Carbon Foundation of Compliance 02 Transition
About the Report 0 2 Sustainable Development Governance 15 Climate Response 29
Message from Our Chairwoman 0 3 Corporate Governance 21 Environmental Management 39
About Us 0 4 Green Operations 43
Special Feature 1 1
03 ECO-PRODUCTION ECO-HARMONYDelivering Excellence in Fostering Organizational Intelligent Manufacturing 04 Cohesion
Appendix I Quantitative Performance Table 107 Quality and Safety 52 Inclusive Workplace 81
Appendix II SSE Guidelines Content Index 111 R&D Innovation 60 Talent Development 86
Appendix III Contributing to UN SDGs 112 Commitment to Service Excellence 66 Employee Care 91
Appendix IV GRI Content Index 114 Responsible Marketing 71 Occupational Health and Safety 96
Appendix V Main Subsidiaries and Abbreviations 117 Supply Chain Management 74 Shared Success Through Collaboration 99
Appendix VI Independent Assurance Statement 118 Philanthropy and Public Welfare 104
Appendix VII Feedback Form 119Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 02Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
About the Report This report is the 13th annual Sustainability Report of Sailun Group Co. Ltd. (Stock Code: 601058.SH hereinafter referred to as "the Group"). The report adheres to the principles of objectivity and truthfulness disclosing the Group and its subsidiaries' philosophy and practical achievements in sustainable development as well as in
the areas of environment social responsibility and governance (ESG). The Group commits that the report's content is free from false records misleading statements or
material omissions and assumes responsibility for the authenticity accuracy and completeness of its content.Terminology and Definitions Report Scope External Assurance
For ease of expression the terms "Sailun Group" "the Group" and The report covers Sailun Group and its subsidiaries consistent with the This report has undergone independent third-party assurance by SGS-
"we" as used in this report all refer to Sailun Group Co. Ltd. and scope of the Group's consolidated financial reporting. CSTC Standards Technical Services Co. Ltd. The assurance statement
its subsidiaries1. The names and abbreviations of the subsidiaries can be found in Appendix VI: Independent Assurance Statement.mentioned in this report are detailed in Appendix V.Report Data Preparation Basis Contact Information
The data and case studies presented in this report are sourced Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed The report is available in both Chinese and English print and electronic
exclusively from Sailun Group's official documents statistical reports Companies — Sustainability Report (Trial) versions. The electronic version can be accessed or downloaded online
and media publications and have been reviewed and approved by from the official website of Sailun Group at www.sailungroup.com.the Board of Directors. All financial data contained in this report has Guidelines No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed In case of any minor discrepancies between the Chinese and English
undergone independent third-party audit. Unless otherwise specified Companies — Sustainability Report Preparation (Revised in January 2026) versions the Chinese version shall prevail.all monetary values and amounts in this report are denominated in
Renminbi (RMB).United Nations Sustainable Development Goals (UN SDGs) For any questions or suggestions regarding
the content of this report please feel free to
Report Time United Nations Global Compact Ten Principles
contact us by phone or email
Global Reporting Initiative (GRI) Standards
The report covers the period from January 1 to December 31 2025 Tel.: +86 4006608329
(hereinafter referred to as the "reporting period"). The report is Corporate Sustainability Disclosure Standards - Basic Standards (Trial)
published annually in line with the financial reports. To ensure the E-mail: kcxfzzlglbgs@sailuntire.com
completeness of the report certain content has been retrospectively Address: Rubber and Plastic New Materials Building
included or extended as necessary. No. 43 Zhengzhou Road Shibei District Qingdao City
Shandong Province China
1 A s used in this report the terms "Sailun Group" "the Group" and "we" all refer to Sailun Group Co. Ltd. at the group level. When the "Qingdao Factory" is mentioned
separately in this report it specifically refers to the factory of Sailun Group Co. Ltd. located in the Qingdao region (No. 588 Maoshan Road Huangdao District).About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 03Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Message from Our Chairwoman
resistance and braking distance. These tires are also equipped with self-sealing safety
technology proprietary noise-reduction technology and RFID intelligent traceability
integrated with seven fashionable colors inspired by Eastern aesthetics leading the tire
In 2025 the global economic recovery remained fraught with uncertainty as geopolitical industry into a new era of "high aesthetics + high performance."
tensions and pressures from the green transition intertwined while AI technology Digitalization is an inherent 'native gene' of Sailun Group. Led by AI and anchored by our
flourished driving a profound transformation in the competitive landscape of industries. self-developed Eco-Rubber Cloud industrial internet platform as the core foundation
In the face of a complex and challenging external environment Sailun Group has remained we continue to accumulate corporate data assets and establish an AI application system covering the entire lifecycle of R&D production supply chain marketing and
steadfast in its long-term commitment staying true to its original mission of "making service. This has formed an overall AI layout characterized by "core leadership multi-
great tires." Anchored by technological innovation on the path toward high-quality dimensional extension and full-chain penetration" achieving a strategic leap from "business scenario pilots" to "comprehensive AI empowerment."
development and with the successive commissioning of the Mexico Factory and Indonesia
Factory the Group has steadily advanced its global strategy continuously strengthening VALUE SYMBIOSIS & SHARED RESPONSIBILITY – EMPOWERING SUSTAINABLE DEVELOPMENT WITH HUMANISTIC CARE
its core competitiveness and sustainability resilience.We have always believed that "our employees are our most valuable asset." We
continue to improve our global talent development system deepen organizational
Chairwoman of Sailun Group capacity building and talent echelon cultivation. During the reporting period the Group
organized skills and comprehensive competency assessments for employees 24000
Liu Yanhua person-times including learning examinations and skills competitions across multiple
dimensions of "learning testing practice and evaluation" accumulating nearly 260000
GOVERNANCE UPGRADE & COMPLIANCE SUPPORT – STRENGTHENING THE In environmental management we strictly follow the environmental standards of our multilingual test questions. Upholding the principle that "Our people are our greatest
FOUNDATION OF THE GROUP'S COMPLIANCE MANAGEMENT operating countries establishing a robust environmental management system. We concern" we continuously improve our compensation benefits and employee
rigorously control emissions of waste gas wastewater and solid waste fully implementing care mechanisms. During the reporting period we invested over RMB 30 million in
In 2025 we positioned "eco-governance" as the core pillar of the Group's sustainable pollution prevention measures to safeguard ecological and environmental security. In the renovation and reconstruction of employee dormitories paying full attention to
development. The "eco+" sustainable development strategy was integrated into our resource recycling we have set medium- to long-term water conservation targets for 2030 employees' work-life balance to ensure that dedicated individuals are treated with
top-level planning and a governance structure with clearly defined responsibilities driving the transformation of our production model towards circularity. Through initiatives dignity receive due rewards and feel a strong sense of belonging.was established. ESG performance was directly linked to the compensation incentives such as water resource recycling we have continuously improved resource utilization
of senior management and this "key minority" accountability mechanism drove We are committed to building a diverse equitable and inclusive workplace ecosystem efficiency. In climate change tackling we continue to expand the use of clean energy
implementation across all employees comprehensively enhancing the effectiveness of respecting different nationalities cultures and backgrounds and ensuring all sources such as photovoltaics and biomass adopting low-carbon energy types including
sustainable development governance. The MSCI ESG rating jumped to AA a milestone employees enjoy fair development opportunities. In the process of global expansion we natural gas to promote low-carbon upgrades in production processes. During the reporting
representing the high recognition from international capital markets for the Group's not only export advanced manufacturing and management expertise but also deeply period the Group's climate action case study was selected for inclusion in the 2025
sustainability practices. embed the corporate culture of "trust and respect" promoting cultural integration and Corporate (Park) Climate Action Case Collection and was featured at the 30th Conference of collaborative growth between Chinese and overseas teams achieving value symbiosis
The Group continuously improved its modern corporate governance system the Parties (COP30) to the United Nations Framework Convention on Climate Change. At the between the Group and its employees.establishing a management framework covering business ethics data security and same time we continue to increase the application of sustainable materials including bio-
compliance risk control. Through regular compliance training and integrity education based materials working together with supply chain partners to contribute to global climate As a pioneer in the global expansion of China's tire industry the Group was among the
we fortified a transparent standardized stable and orderly operational baseline. governance. first to join the World Business Council for Sustainable Development (WBCSD) working
We remain committed to strengthening our organization and institutional systems with global partners to fulfill social responsibility. During the reporting period we TECHNOLOGICAL INNOVATION & SMART CREATION FOR THE FUTURE – DRIVING
continuously enhancing the scientific systematic and effective nature of the Group's donated over RMB 9 million to public welfare areas such as education support disaster HIGH-QUALITY INDUSTRY DEVELOPMENT THROUGH TECHNOLOGY
governance. The Group has received the highest grade 'A' in the Shanghai Stock relief and rural revitalization giving back to society through concrete actions and
Exchange's information disclosure evaluation for three consecutive years while the "Focus on self-transcendence and continuous innovation" is the corporate innovation achieving the synergy and coordinated progress of commercial and social value.scope of anti-bribery management system certification has continued to expand spirit deeply embedded in Sailun Group and the core engine of the Group's high- STAYING TRUE TO OUR MISSION STRIVING TOWARD A SUSTAINABLE FUTURE
providing global investors with a solid and reliable decision-making basis through quality development. We insist on embedding technological innovation throughout
highly transparent governance practices and credible information disclosure. the entire process of the Group's development continuously increasing investment Sailun Group remains steadfast in its vision to "Become a global influential tire company
in fundamental research and building an innovation ecosystem that integrates Vision" and its mission of "Make great tires" opening a new chapter of global high-
ECO-PLANET & GREEN EMPOWERMENT – BUILDING A NEW LOW-CARBON the "innovation chain and industrial chain." Driven by the dual engines of "Green quality development. We deeply understand that the true future is not a race for speed
PARADIGM FOR THE TIRE INDUSTRY Technology" and "Digital-Intelligent Integration" we are achieving high-quality but a contest of sustainable foresight—and we are firmly on this path.As a proactive advocate for sustainable development in the global tire industry Sailun development for the Group. Looking ahead we will continue to deepen our "eco+" sustainable development
Group firmly believes that green is the fundamental foundation of long-term enterprise During the reporting period we continued to drive the transformation of our products strategy joining hands with global partners to collectively build a green intelligent and
development. We have embedded ecological responsibility across all dimensions of our towards higher-end smarter and greener solutions. The EcoPoint3 Tire Fashion Series sustainable mobility ecosystem making every journey safer greener and better.corporate growth. was launched achieving triple technological breakthroughs in energy efficiency wearMessage ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the Report from Our
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Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 04Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
About Us
Corporate Profile
Sailun Group established in 2002 and listed on the Shanghai Stock invested in the construction of the East China Intelligent Connected Vehicle Looking ahead Sailun Group will remain steadfast in its corporate
Exchange in 2011 (Stock Code: 601058) was the first privately-owned tire (ICV) Test Site. Upon completion it will become China's premier and a world- mission of "making great tires" continuously providing society with
manufacturer in China to be listed on the A-share market. After more than class integrated R&D and testing platform for intelligent transportation and safer greener and more sustainable tire products. We are committed to
two decades of development the Group has grown into a global industrial autonomous driving further strengthening the Group's comprehensive helping people achieve safer and more liberated mobility and driving
enterprise integrating tire R&D manufacturing sales and services. capabilities in technological R&D and industrial collaboration and societal operations towards greater efficiency and harmony.Currently the Group has built more than ten tire manufacturing facilities in continuously improving its global R&D production sales and service system.China (Qingdao Dongying Shenyang and Weifang) and overseas (Vietnam
Cambodia Indonesia and Mexico) with three additional tire factories
under construction in Egypt Shenyang and Dongjiakou (Qingdao).Globally the Group operates four R&D centers and one vehicle test track Qingdao Weifang Dongying Europe R&D Center Shenyang Qingdao Dongjiakou Factory North America Mexico Factory
with its product and service network covering more than 180 countries Factory Factory Factory Factory (Under Construction) R&D Center
and regions. In the 2025 Global Tire Report Top 75 ranking released by Tire Shenyang
Business Sailun Group ranked 10th globally in terms of sales revenue. Xin He Ping Factory (Under
In the World's Most Valuable Tire Brands 2025 list released by Brand NorthEurope Construction) America
Finance the Group's brand value reached the 10th position worldwide
maintaining its position as the top Chinese tire brand. In its released '2025
Asia
Global Sustainability Report' for the tire industry the Group advanced Sailun China Headquarters
one position in the global sustainability ranking of tire enterprises to rank
eighth worldwide firmly securing the top spot among Chinese tire brands. Egypt Factory
(Under Construction)
Sailun Group consistently adheres to innovation-driven high-quality
development. It pioneered and launched the world's first operational
industrial internet platform for the rubber tire industry—Eco-Rubber Africa
Cloud—achieving integrated platform-based and diversified business
operations. The Group has established three core proprietary technology South
America
systems covering Passenger Car Radial Tires (PCR) Truck and Bus Radial
Tires (TBR) and Off-The-Road Tires (OTR) all with full proprietary intellectual
property rights. Furthermore it became the first Chinese tire brand to be Oceania
included in the FIA list of tire suppliers for motorsport events. Leveraging the
world's first chemically refined rubber material technology Sailun Group
successfully developed a new generation of green tire products—EcoPoint3.These tires reduce rolling resistance while simultaneously improving wet Factory
grip and wear resistance successfully breaking the long-standing "magic
triangle" that has challenged the tire industry for decades. This advancement R&D Centers
has made driving safer more energy-efficient and more comfortable and Vietnam ACTR Factory Cambodia Indonesia Factory Vietnam Vietnam R&D Qingdao R&D CenterFactory Factory Center
is recognized as the fourth milestone innovation in the global rubber tire
industry. In terms of industrial ecosystem development Sailun Group has Approval number: GS (2016) 2945 supervised by the Ministry of Natural ResourcesSailun Group Co. Ltd. ｜ 2025 Sustainability Report About the
Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 05Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Company Product Brand
Make great tires Focus on self-
transcendence and
continuous innovation
Mission Enterprise Spirit
Trust and respect Core Values People-Vision Centric Our people are our
Governance greatest concern
Become a global
influential tire
company
Operational
Principles Team
Philosophy Principles
Work hard for a One group united for a Guiding
better life Principles lifetime committed to one
for Sailun goal wholeheartedly
People
Company Technology Brand
E ngagement on mission: Aligning with the C ourageous accountability: Owning outcomes S trategic alignment: Keeping the
mission and setting clear objectives. and leading with responsibility. organization’s broader vision at the
forefront.C ustomer-centric value creation: Delivering L ifelong learning: Committing to continuous
measurable value to customers. personal and professional growth. R adical transparency: Acting with
simplicity directness and openness.U ncompromising execution: Prioritizing R elentless innovation: Driving improvement
prompt and effective task completion. through creativity and iteration.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 06Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Awards and Honors
ESG Rating Performance
Received an AA Rating from MSCI ESG Received a B rating for "Climate Change" Awarded the Silver Medal by Rated AA by the Wind ESG Rating
and a B rating for "Water Security" EcoVadis
Achieved an A- rating in the SEA
Sustainability Commitments
World Business Council for Joined the United Nations Global Joined the Science Based Targets Joined the Global Platform for Joined the China Carbon Neutrality
Sustainable Development Compact (UNGC) initiative (SBTi) Sustainable Natural Rubber (GPSNR) Action Alliance (CCNAA)
(China's First Tire Industry
Member)About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 07Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Awarding Body (Government)
National Manufacturing National Manufacturing Enterprise
Manufacturing Digital Champion (Single Product Quality Management Capability Exemplary Smart Factory
Transformation Facilitation Center Category) – OTR Radial Tires Assessment – Assurance Level
Ministry of Industry and
Ministry of Industry and Information Ministry of Industry and Information Ministry of Industry and Information Information Technology of the
Technology of the People's Republic Technology of the People's Republic Technology of the People's People's Republic of China
of China of China Republic of China
Selected for the 2025 Corporate First Prize for Scientific and
2025 National-Level Green (Park) Climate Action Case Collection Technological Progress in
Factory: Dongying Factory Gold Award for Best Employer Shandong Province
Center for Environmental Education
Ministry of Industry and Information and Communications of Ministry of Royal Government of Cambodia Shandong Provincial
Technology of the People's Republic Ecology and Environment China People's Government
of China Champions for Climate Action
Shandong Private Economy High-Quality Development Outstanding Shandong Province Model Eighth Qingdao Mayor's Quality
Contribution Award "Industrial Brain" Award – Excellence Award
Shandong Provincial Development and Reform Commission Shandong Shandong Provincial Department of Qingdao Municipal People's
Provincial Department of Industry and Information Technology Industry and Information Technology Government
Awarding Body (Association)
Top 500 Chinese Private Top 500 Chinese Private 2025 Best Practice for Listed
Enterprises Manufacturing Enterprises 2025 Best Practice for Listed Company Boards of Directors
(Rank 417) (Rank 289) Company Boards of Directors Offices
All-China Federation of All-China Federation of Industry China Association for Public China Association for Public
Industry and Commerce and Commerce Companies CompaniesMessage ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the Report from Our
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Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 08Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Awarding Body (Association)
Leading Enterprise in China's Shanghai Pudong New Area Sino-Foreign Enterprise Sustainable Development (ESG)
Agricultural Machinery Parts Sector Industry Ecology Innovation Competition – Innovation Model Award
China Agricultural Machinery Industry Shanghai Pudong Foreign-Invested Enterprise Association
Association Shanghai Pudong New Area Domestic Enterprise Association
Awarding Body (Media)
3rd China Corporate Carbon
2025 Corporate ESG Practice Sixth China Auto Awards Gala Neutrality Ranking – Green
Case – Annual Innovation Case Asia's Top 500 Brands (Rank 316) Supply Chain Management Award
Brand Work Office of Xinhua China Media Group World Brand Lab Yicai
News Agency Xinhuanet
Awarding Body (Third Party)
2025 Excellent Case of New Quality Selected for the 2025 China
Productivity in the Automotive Industry Corporate Carbon Targets Whitepaper Most Attractive Employer for EY Sustainability Award 2025 -
Global Talent Outstanding Enterprise
China Certification & Inspection Group Shanghai Environment and
Xinhua Economic Information Service Energy Exchange LinkedIn Ernst & Young (China) Advisory Ltd.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 09Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
ESG Highlights Performance
ECO-GOVERNANCE: Strengthening
the Foundation of Compliance ECO-PRODUCTION: Delivering Excellence in Intelligent Manufacturing
Sustainable Development
Governance Quality and Safety Customer Service
Continued to advance the "eco+" sustainable 100 Completed over More than The Group's customer satisfaction score development strategy systematically planning % (overseas) was
medium and long-term ESG action pathways
of 9 operational factories obtained 900000 9200
ISO 9001 Quality Management System
In 2025 the completion rate of certification material and formula tests product performance and
97.80
ESG action pathways for each 43% throughout the year regulatory tests
center/department reached The customer satisfaction score (China) was
of Board members
are independent Conducted a cumulative total of Available certification testing standards cover over 100 countries and 96.67% directors regions globally1644 97.32Total training duration of
quality training sessions at the 0 Supply Chain Management
Business Ethics departmental level or above 164400 hours number of major liability
accidents related to product
safety and quality
100 All four major manufacturing 100%% bases have successfully R&D Innovation
obtained ISO 37001 Anti- of raw material suppliers signed the Quality of employees Bribery Management System Assurance Agreement
received business certification Intellectual property compliance management
ethics training The sustainable Led the drafting of 3 national system certification fully covers the R&D
material content in standards related to rubber tires and production and sales processes of PCR tires
tires reached tire and road wear particles (TRWP) commercial vehicle tires and OTR tires achieving 100%
Information Security 31.04% 100% coverage
of procurement personnel participated in
sustainable procurement-related training
0 The Group's investment in Completed 5 national standards clean technology achieved an as the lead organization and 2441 463
incidents involving information security breaches annual growth rate of over participated in the drafting
or customer privacy leaks or revision of more than 10 valid patents newly granted
Established a procurement risk management
5 national standards patents system and EcoVadis assessment framework%Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 10Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
ECO-PLANET: Leading the Low-Carbon Transition ECO-HARMONY: Fostering Organizational Cohesion
Environmental Management Inclusive Workplace
100 % 7 Achieving certification coverage rate All factories maintaining continuous operations have obtained
of all 7 factories maintaining continuous operations have obtained ISO 14001 Environmental Management SA 8000 Social Accountability Management System certification
System certification 100 %
Climate Response Talent Development
Energy consumption per unit of Energy consumption per unit of Energy consumption per unit
Passenger Car Radial (PCR) tire Truck and Bus Radial (TBR) tire of Off-The-Road Tire (OTR)
production decreased by Provided an Achieving training Continuously built a closed-loop mentor management production decreased by production decreased by average of coverage rate system with an average satisfaction score of
17.54%19.89%30.20%19.04100%97
compared to 2022 compared to 2022 compared to 2022 training hours per employee for mentor-led training
Carbon emissions per unit of Carbon emissions per unit of Carbon emissions per unit of Off-
Passenger Car Radial (PCR) tire Truck and Bus Radial (TBR) tire The-Road Tire (OTR) production Employee Care
production decreased by production decreased by decreased by
22.94 24.34 Achieved a Employee satisfaction score % % 37.29 %
compared to 2022 compared to 2022 compared to 2022 94.82 % 93.81
participation rate in the employee
Utilized Reducing carbon emissions by satisfaction survey
over 8000 tonnes 12700 tonnes Occupational Health and Safety Philanthropy
of biomass
Generated Reducing carbon emissions by 100 % RMB 9.3871 million
44.90 23800 of operational factories obtained ISO 45001 Occupational Health and was invested in various public welfare projects million kWh tonnes Safety Management certification
of photovoltaic electricityAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 11Chairwoman Us Feature Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
IAL FEATURESPEC
wering the
Entire
Empo with AI to
Value Cha
in
ustainable
Future
Build a S Sailun's Overall AI Strategic Planning
Together Digitalization is an inherent "native gene" of Sailun Group. Upholding the corporate
spirit of "Focus on self-transcendence and continuous innovation" the Group has
implemented the AI-led Eco-Rubber Cloud industrial internet platform serving as
an "accelerator" to drive the strategic implementation of the Group. Simultaneously
we established an AI application system covering the entire lifecycle—from R&D
and production to supply chain sales and service—anchored by the "Eco-Rubber
Cloud" industrial internet platform. This initiative creates a comprehensive layout
characterized by core leadership multi-dimensional extension and full-chain
penetration. The Group integrates cutting-edge technologies such as Natural
Language Processing (NLP) and Visual Intelligence (VI) to provide comprehensive
end-to-end and all-scenario intelligent support for the tire industry.We adhere to the principle of "autonomous control and industrial synergy".Through applying core algorithms and self-developed models we collaborate with
industry ecosystem partners to jointly develop technical solutions and partner with
universities to address industry challenges. This approach builds an AI ecosystem
integrating computing power data models and applications. We adopted a model
of private deployment and intranet data transmission to ensure data security while
breaking down data silos across business systems. This approach has facilitated
the expansion of AI technology from isolated breakthroughs to scaled systematic
applications. We were the first in the rubber tire industry to achieve a strategic leap
from "business scenario pilots" to "comprehensive AI empowerment" elevating our
core competitiveness from "manufacturing capability" to "data and intelligence-
driven power." Consequently we can respond more agilely to market changes and
meet customer needs more efficiently.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 12Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Core Business Scenarios and AI Implementation Practices
Intelligent R&D: Technology Empowering Product Innovation
Smart Marketing: Building a New Ecosystem for
Supported by a digital R&D platform Sailun Group has implemented an AI assistant for research and development. By leveraging the system to access vast
historical data on formulations physical model parameters and test results the group utilizes AI models based on deep learning to precisely predict the Comprehensive Marketing
performance of new material combinations. The system simulates tens of thousands of formulation combinations automatically identifies optimal solutions We have established a professional marketing model system to provide
through algorithms and recommends the best component ratios resulting in a 50% reduction in the formula development cycle. It accurately predicted key 7×24-hour intelligent customer service for end consumers enabling
product performance metrics providing a scientific basis for decisions on R&D direction planning and product performance iteration. personalized interactions throughout the entire process from product
selection to tire maintenance and repair. We equipped sales personnel
Intelligent Manufacturing: Building an Intelligent Production System with intelligent office assistants that utilize intelligent robots to rapidly
respond to channel information inquiries achieving zero-latency
We have established a comprehensive intelligent manufacturing system featuring "cloud-based AI coordination edge-side intelligent control and channel collaboration. Simultaneously we leverage Convolutional
device-side perception." In quality control we employ intelligent visual inspection technology to achieve real-time monitoring and intelligent anomaly Neural Network (CNN) technology to automatically identify tire defects
detection throughout key processes enabling rapid and precise problem localization. In safety prevention we have established a comprehensive and intelligently assess damages thereby achieving intelligent audit
intelligent security network; through facilities such as electronic fences for personnel intrusion detection we realize production environment and service that balances operational efficiency with risk control and
monitoring and risk warning. In process optimization we utilize intelligent algorithms to dynamically adjust process parameters such as fabric security.width thereby enhancing production stability and resource utilization efficiency. AI and machine vision technologies are comprehensively applied to
automate X-ray cord counting and bubble grading via imaging. The accuracy of bubble detection exceeds 99% and the accuracy of X-ray cord counting
also exceeds 99%. As of the end of the reporting period the relevant initiatives have been promoted and applied across multiple tire factories globally.Intelligent Logistics Collaboration: Automated Workshop Automatic Production Scheduling: Refined
Carbon Reduction and Efficiency Enhancement Control to Optimize Resources
Sailun Group continues to advance the application Sailun Group has fully implemented the Advanced Planning and
of AGV logistics and semi-finished product logistics. Scheduling (APS) system alongside an automated logistics system.Leveraging the MES system precise transfer instructions It has established an order-driven intelligent production scheduling
are issued to the AGV cluster to enable on-demand framework across its three major product lines: passenger car tires
automatic deliver y of raw materials semi-finished commercial vehicle tires and off-the-road tires thereby connecting
products and green tires. This has significantly increased the entire process chain from the master production plan to workshop
overall equipment utilization reduced the risk of waiting operations. During the reporting period the overall production
for materials by 15% decreased inventory backlog by scheduling accuracy exceeded 95% resulting in a significant
15% and improved production efficiency by 10%. improvement in scheduling efficiency. This effectively reduced
equipment idling and energy consumption while continuously
promoting green and intensive production operations.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 13Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Intelligent Office: Building an Efficient and Collaborative Internal Future Outlook
Operations System
We have established a group-level comprehensive intelligent office portal completing multi- From laying the first cornerstone of information technology in 2002 to comprehensively deepening AI construction at the
terminal deployment and functional upgrades. We launched AI-powered assistants and agent- current stage Sailun Group has consistently integrated "digitalization" into its development DNA providing replicable and
based application tools covering areas such as collaborative work and enterprise operations scalable intelligent transformation solutions for the tire manufacturing and related manufacturing sectors. In the future
enabling intelligent processing of documents in multiple languages and formats along with key Sailun Group will continue to increase investment in core AI technology research and development deepen the research
information extraction. We built an enterprise knowledge service system to provide intelligent and application of frontier technologies such as large models multimodal fusion and digital twins. We aim to co-build an
office support including knowledge retrieval process assistance and document processing open and win-win industrial AI ecosystem drive overall efficiency improvements and value co-creation across the rubber
comprehensively enhancing office efficiency and collaboration effectiveness. Additionally we tire industry and support the sector's transition to a new stage of high-quality development.independently developed enterprise digital humans continuously optimizing core technical
capabilities to empower the upgrade of digital office experiences.Smart Supply Chain: Enhancing End-to-End Collaborative Efficiency
We have established a dedicated intelligent support system for the supply chain connecting
data links across all channels. By leveraging intelligent algorithms and data mining
technologies we achieve demand forecasting and optimized resource scheduling. In
logistics coordination we have realized full-process intelligence for document processing
information entry and archiving management facilitating the efficient execution of global
operations. Simultaneously we integrate multi-dimensional business information to provide
intelligent support for supply chain and group-wide operational decision-making driving the
transformation of the supply chain toward intelligence efficiency and precision.Intelligent Services: Building a Customer Service Ecosystem
We focus on customer needs throughout the tire lifecycle and have built an intelligent service
system centered on tire insurance claims. By replacing traditional manual verification with
intelligent identification technology we effectively enhance service efficiency and quality
while improving customer satisfaction. Leveraging smart tires the Group has established a
"Cloud-Edge-Device" collaborative architecture to enable proactive driving safety warnings
precise operational cost control and digital management across the full lifecycle. Furthermore
addressing industry pain points the Group expanded AI service scenarios for real-time
collection analysis and anomaly warning of mining tire tread temperatures. This initiative
has significantly reduced the incidence rate of major safety accidents such as blowouts and
improved vehicle operational efficiency by 35%.赛轮集团｜ 2025 年度可持续发展报告 0报0告说明 管理层寄语 关于我们 专题 精益治理：筑牢合规基石 生态卓越：引领低碳转型 价值驱动：智造卓越品质 人文共生：凝聚组织合力 附录 14
01 ECO-GOVERNANCE02 Strengthening the Foundation of Compliance
Sustainable Development Governance
Corporate Governance
Sailun Group's high-quality development is underpinned by a continuously improved
governance structure. By deepening internal control mechanisms and the proactive
management of risks we fortify our defenses for operational safety adhere to
business ethics and systematically embed ESG principles into corporate strategy and
business processes thereby driving responsible value creation. We also prioritize two-
way communication and collaborative co-creation with all stakeholders committed to
building a transparent mutually trusting and win-win sustainable future.UN SDGs:About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 15Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sustainable Development Governance
Sailun Group regards sustainable development governance as the core guarantee for promoting high-quality enterprise development and achieving long-term value creation. We are committed to deeply integrating
sustainability principles into the top-level design of corporate governance and daily operations ensuring that the sustainable development strategy resonates with the Group's overall strategic objectives.Our Governance
We continuously improve our ESG governance structure with the "eco+" Board of Directors
sustainable development strategy serving as a pillar to drive the deep
integration of ESG goals and business operations. Through ongoing Strategy and Sustainable
stakeholder engagement and double materiality assessments we precisely Development Committee
identify key issues ensuring the sustainability strategy is effectively integrated
into the entire process of corporate decision-making and execution. This Group Sustainable Development
comprehensive approach enhances the Group's practical capabilities and Leadership Team
responsible influence in the field of sustainable development. Group Strategic Management
Group Sustainable Office of Sustainability
Sustainable Development Governance Structure Development Working Team
To systematically integrate the concept of sustainable development
into the Group's operations Sailun Group has established a sustainable
development governance structure with clearly defined responsibilities
and efficient operation. The Board of Directors as the highest decision-
making and oversight body holistically steers the strategic direction of
sustainable development ensuring its deep alignment with the Group's
overall strategic objectives. The Strategy and Sustainable Development
Committee is responsible for the deliberation decision-making and
advancement management of specific topics. This forms a long-term
governance mechanism featuring top-down guidance and collaborative
synergy providing robust support for the solid implementation of
sustainable development goals.Sustainable Development Governance Structure
Marketing Working Team
Qingdao Factory
Sustainability Working
Team Operations and Support
Working Team
Shenyang Factory
Sustainability Working
Team Public Welfare and Social
Responsibility Working Team
Shenyang Xin He Ping
Factory Sustainability
Working Team Quality Working Team
Dongying Factory
Sustainability Working
Team Technology Working Team
Weifang Factory
Sustainability Working Sustainable Procurement
Team Working Team
Vietnam Factory Production System
Sustainability Working Sustainable Development
Team Working Team
ACTR Factory Employee Rights and
Sustainability Working Development Working Team
Team
Cambodia Factory Investment and Financing
Sustainability Working Relations Working Team
Team
Indonesia Factory Business Ethics and
Sustainability Working Compliance Working Team
Team
Information Technology
Mexico Factory Working Team
Sustainability Working
Team
Communications Working
TeamAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 16Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Level Governance Subject Personnel Composition Functions Monitoring/Reporting Mechanism
Responsible for studying sustainable development
Strategy and Composed of 2 non- strategies and promoting the construction of a Decision- Sustainable
making Level Development independent directors and
sustainable development system Reporting to the Board of Directors at
least once a year
Committee 1 independent director Annual review of sustainable development reports
and progress on targets
Directly led by the Responsible for formulating and implementing
Group Sustainable Chairman composed of business leaders including the Group's sustainable development strategy
Reporting to the Board of Directors
Development reviewing the performance of commitments on or the Strategy & Sustainable
Leadership Team the President Vice Development Committee at least 4 President and Assistant to key topics such as climate change response and times a year
Management the Chairman social responsibility
Level
Directly led by the Promoting the implementation and execution of
Group Strategy Assistant to the Chairman the sustainable development strategy Monthly reporting of progress
Management Office of and composed of the Regularly summarizing sustainability progress and results to the Sustainability
Sustainability Secretariat of the Working concluding work achievements and preparing the Leadership Working Team
Team sustainability report
Composed of relevant
Execution Group Sustainable Development Working personnel from centers
Implementing the strategic objectives of the Monthly reporting of ESG-related
Level business departments and sustainable development strategy and the annual progress to the Strategy Management Team factories sustainability action pathways Office of Sustainability
Decision-Making and Supervision
To ensure the effective implementation of the sustainable development and management coverage of sustainability-related work have been
strategy Sailun Group continuously optimizes its governance and enhanced ensuring the effective implementation of relevant requirements
supervision mechanisms. The Board of Directors and the Strategy and at all levels.Sustainable Development Committee regularly review the progress
of sustainable development goals. Aligned with industry trends and To strengthen accountability and execution discipline in sustainable
the Group's developmental stage they conduct in-depth analysis of development governance the Group has incorporated ESG performance
potential risks and strategic opportunities and deliberate on related into the performance assessment and incentive mechanisms for senior
risk response plans. This ensures the deep integration of the "eco+" management. Key ESG indicators including environmental management
sustainable development strategy and sustainability issues with the occupational health and safety product quality and safety climate change
Group's medium- to long-term development plans solidifying the top- tackling and business ethics are linked to their compensation incentives
level governance foundation for the Group's sustainable development. aligned with their respective business responsibilities. Furthermore we
have integrated sustainability indicators into the overall performance
In response to the business layout involving new tire factories management system cascading them down to key business departments
organizational restructuring and sustainability coordination needs the as a significant component of their annual performance evaluations. This
Group has dynamically optimized the composition of the Sustainable performance linkage mechanism drives the systematic implementation
Development Working Team. Personnel from the newly added tire factories and continuous improvement of ESG requirements throughout the
have been incorporated into the working framework. By strengthening organization.overall coordination and inter-departmental collaboration the efficiencyAbout the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 17Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Professional Skills and Abilities
Members of the Board of Directors and the Strategy and Sustainable Development Committee possess diversified professional backgrounds spanning Multi-dimensional Empowerment Program:
corporate strategic management auditing risk management and financial management coupled with extensive industry experience and strategic decision- Sustainability Training Drives a New
making capabilities. This enables the full and prudent incorporation of sustainability considerations in the formulation of the Group's medium- to long-term Ecosystem of Internal and External Synergy case
development strategies and in the decision-making process for significant matters.To continuously enhance the professional knowledge and governance capabilities of the Board and committees regarding sustainability issues members of
the Board of Directors and the Strategy and Sustainable Development Committee regularly participate in sustainability-focused training sessions organized by In 2025 Sailun Group adopted a dual-driven approach of
external professional institutions. This ensures they stay updated on the latest regulatory requirements industry trends and best practices. During the reporting "deepening internal understanding and enabling external
period the Strategy and Sustainable Development Committee convened multiple meetings dedicated to sustainability. These meetings reviewed matters collaboration" to construct an ESG training system covering
including the Group's sustainable development strategy annual operational and development plans double materiality assessments sustainability information all employees and the industrial chain. Internally systematic
disclosure and significant investments and overseas project layouts. Recommendations on related proposals were formulated and submitted to the Board of sustainable development training for all employees and new
Directors for deliberation ensuring that sustainability requirements are effectively incorporated into corporate governance and major decision-making. hires strengthened sustainability awareness. Specialized
training on core sustainability topics such as business ethics
Concurrently the Group Sustainable Development Leadership Team Group Strategic Management Office of Sustainability and Sustainable Development compliance product quality and safety was conducted for
Working Team maintain ongoing communication with external professional institutions and participate in training to enhance sustainable development highly relevant business departments solidifying the internal
management capabilities. This continuous absorption of professional knowledge strengthens ESG management and execution competencies promoting the talent base for sustainable development. Externally the
effective fulfillment of sustainable development governance responsibilities at all levels of the Group. During the reporting period all members of the Group's Group extended sustainable development training to its value
Sustainable Development Strategy Management Office participated multiple times in professional capacity-building training sessions organized by regulatory chain providing partners with thematic empowerment on
bodies government agencies and industry association including the Shanghai Stock Exchange (hereinafter referred to as "the SSE"). The training covered topics sustainable procurement and environmental management
such as ESG disclosure standards for listed companies case studies on corporate sustainable development systems and pathways for low-carbon industry helping them enhance their sustainability management
transformation. These activities have strengthened the Group's capability to compile its sustainable development report and fostered a culture of internal capabilities and jointly driving improvements in the green and
sustainable development. responsible performance of the industrial chain. Through this
internal-external linkage the Group promotes the transition of
sustainable development concepts from enhanced cognition to
practical implementation fostering a green collaborative and
win-win sustainable development ecosystem.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 18Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sustainable Development Strategy
Anchored in the "eco+" Sustainable
In 2025 "eco+" sustainable development strategy. Centered on the four strategic pillars of "eco-planet eco-harmony eco-production and eco-governance" Development Strategy: Sailun's Global
and focusing on the four core areas of environment social responsibility governance and product the Group established a full-chain sustainability Sustainability Ranking Reaches New Heights
implementation pathway of "strategy anchoring target decomposition responsibility binding mechanism safeguarding and closed-loop review." This case
ensures a comprehensive implementation plan that translates top-level design effectively into grassroots execution. With the Sailun Group "eco+" sustainable
development strategy at its core the Group systematically planned its medium-to-long-term ESG action pathway. Aligning with regulatory requirements
market demands and ESG rating standards annual targets were decomposed to various centers and business departments clarifying responsibilities and
key tasks. Concurrently sustainability performance for core positions was linked to assessments strengthening accountability. The Group established a full- During the reporting period Sailun Group's "eco+"
chain governance system encompassing the decision-making level management level and execution level. Through monthly progress reporting process sustainable development strategy achieved significant
monitoring and annual specialized reviews a closed-loop management mechanism was formed providing solid assurance for the effective implementation results. In the 2025 Global Sustainability Report for the tire
of the strategy. industry released by the internationally renowned authority
Brand Finance the Group's global sustainability ranking
During the reporting period the completion rate for the ESG action pathways across various centers/departments in 2025 reached 96.67%. among tire companies rose by one place to 8th worldwide
ranking first among Chinese tire companies. This marks
strong global market recognition of the sustainability
practices of Chinese tire brands.Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 19Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Initiatives
Corporate Background Analysis
The Group promotes the implementation of sustainable development governance
through measures such as conducting double materiality analysis and establishing regular
stakeholder communication mechanisms. Simultaneously a continuous communication Conducting an in-depth analysis of the Group's business plan strategic guidelines and financial statements
and feedback mechanism ensures that all initiatives address the concerns of various examining the geographical locations of Group activities and product services and creating a detailed business
parties and remain subject to supervision thereby forming a governance closed loop that relationship map to clarify the upstream and downstream value chains.spans from issue identification and strategy formulation to execution optimization. Studying relevant laws regulations and regulatory policies analyzing market trends and industry dynamics and
identifying and understanding the needs and expectations of key stakeholders.Double Materiality Analysis
Based on industry dynamics business models and value chain responsibilities and combined
with annual stakeholder communication and feedback we comprehensively identify and
assess relevant issues. Through a double materiality analysis of issues from both impact and
financial dimensions and subject to final review and approval by the Board of Directors we Issues Identification and Issue List Establishment
have defined the materiality matrix for the current year. This provides a clear and reliable basis
for strategic focus and resource allocation. Benchmarking against regulatory requirements capital market concerns and issues prioritized by industry peers
In 2025 a total of 23 material issues were identified2 3 4. Among these climate change response referring to laws regulations and industry standards and making comprehensive analysis on customer demands
product quality and safety were recognized as core issues possessing both significant impact and to identify potential sustainability material issues for Sailun Group laying the foundation for further evaluating their
financial materiality5. To effectively manage the opportunities and challenges arising from these impact and financial materiality.issues we have established a management strategy combining short-term (within 1 year) medium-
term (within 5 years) and long-term (over 5 years) horizons. A regular monitoring mechanism
has been established to periodically assess progress against targets and the effectiveness of
management measures aiming to continuously enhance our response capabilities and mitigate
the potential impact of related risks on the Group's operations and stakeholders. Materiality Assessment
2 As of the end of the reporting period the Group's accounts payable (including notes payable) balance Issuing prioritization based on multidimensional analysis of expert opinions industry peer experiences feedback from
did not exceed RMB 30 billion accounting for less than 50% of total assets with no overdue payments to
SMEs recorded in the National Enterprise Credit Information Publicity System. Therefore a separate topic management investors and employees.on "Equal Treatment for SMEs" was not established. "Due Diligence" and "Stakeholder Communication"
are not listed separately as they are addressed under other issues. See Appendix II for the topic index. Impact materiality Financial materiality
3 " Climate Change Tackling" includes "Energy Utilization"; "Environmental Management" includes
"Environmental Compliance Pollutant Discharge and Waste Treatment"; "R&D Innovation" includes Assessing impact materiality based on factors such as scale A ssessing financial materiality based on the impact
"Innovation-driven Practices"; "Business Ethics" includes "Anti-Commercial Bribery Anti-Corruption
and Anti-Unfair Competition". See Appendix II for related content. scope likelihood severity and irreversibility of the impact. of the issue on the Group's financial performance the
4 The Indonesia and Mexico factories had a relatively minor impact on the Group's business in 2025 achievement of strategic goals and the potential for
therefore the 2024 sustainability topic disclosure applies. C onducting a comprehensive quantitative evaluation operational or business disruption.
5 by analyzing multidimensional information from Issues of double materiality: Climate Change Tackling and Product Quality and Safety;
Financial materiality issues: Climate Change Tackling and Product Quality and Safety; industry peers external concerns and internal C omprehensively evaluating the financial impact of
I mpact materiality issues: Climate Change Tackling Product Quality and Safety Business Ethics Environment management perspectives; setting a threshold to each issue through interviews and surveys with Group's
Management Human Rights Occupational Health and Safety Water Stewardship R&D Innovation Product evaluate the materiality of the impact followed by management and setting thresholds to evaluate
Sustainability Compensation and Benefits Customer Engagement Training and Development Information ranking the issues based on their materiality. financial materiality and ranking the issues accordingly.and Privacy Protection Circular Economy Supply Chain Management Sustainable Supply Chain Risk
Management Diversity Equity and Inclusion Biodiversity Conservation Corporate Governance.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 20Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Stakeholder Communication
The Group continuously expands diversified communication channels and establishes mechanisms covering multiple groups and scenarios
Business ethics to ensure the timeliness and accuracy of information dissemination. We proactively listen to the voices of stakeholders and through rapid
Climate change tackling response and ongoing feedback enhance their recognition and trust in the Group's ESG philosophy and practices.Environment management
Product quality and safety
Human rights Occupational health and safety Stakeholders Issues of Concern Communication Method
Water stewardship
P roduct sustainability
R&D innovation S upply chain management M eetings exchanges and visits bidding and Suppliers P roduct quality and safety tendering business negotiations questionnaire
Compensation and benefits Product sustainability B usiness ethics R &D innovation surveys supply chain construction
Diversity equity and inclusion Risk management Customer engagement
Sustainable Training and development
supply chain
Corporate governance Information and privacy protection P roduct sustainability
C ustomer service Providing high-quality products and services
Customers business communication questionnaire
Biodiversity P roduct quality and safety I nformation and privacy Supply chain management
conservation protection surveys site visitsCircular economy
R &D innovation I nformation disclosure shareholders' meeting
P ublic welfare service and R isk management analyst conferences performance briefings Investors social contribution research visits by specific entities dedicated phone B usiness ethics number and email address SSE e-interaction
Rural revitalization and local C orporate governance platform investor relations day activities
community development
E nvironmental P roduct quality and safety
Social investment and Smart and digital Government management
community engagement manufacturing Industry R &D innovation G overnment meetings special reports
Associations Climate change tackling B usiness ethics information submission project collaboration
and Regulatory
Financial materiality W ater stewardshipAgencies I nformation and privacy
information disclosure
P roduct sustainability protection
Sailun Group's Double Materiality Issues Matrix for Sustainable Development in 2025
Human rights
Occupational health and T raining and development E mployee congresses training and career
Employees safety D iversity equality and planning onboarding programs employee
C ompensation and inclusion satisfaction survey internal communications
Environmental topics benefits
Social topics E nvironmental R ural revitalization Public welfare activities biodiversity
management
Governance topics Society and the and local community conservation activities social programs
Public C limate change tackling development energy conservation and emission reduction
B iodiversity conservation P roduct quality and safety initiatives
Impact materialityAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 21Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Corporate Governance
Sailun Group is committed to building a transparent fair and integrity-driven governance environment by refining its policy framework and strengthening execution oversight to ensure all business activities comply
with laws regulations and ethical standards.Our Objectives Board Diversity
To establish an industry-leading corporate governance system and safeguard the Group's high-quality development through superior Sailun Group regards board diversity as a key factor in enhancing decision-making quality
governance capabilities we have established quantifiable objectives covering commercial ethics compliance risk management and and promoting sustainable development. We strictly adhere to director nomination and
system construction: Full Coverage of System Certification: By 2030 all tire factories within the Group eligible for certification shall selection procedures giving comprehensive consideration to diverse factors such as
obtain anti-bribery management system certification. candidates' industry experience professional expertise management capabilities and
cultural background thereby ensuring diversity in the composition of the Board members.During the reporting period the Group placed high importance on strengthening the
Our Governance compliance and duty-fulfillment capabilities of directors and senior management (collectively
referred to as "senior management"). Through a tiered categorized and comprehensive
Sailun Group consistently operates in full compliance with the laws regulations and industry standards of all jurisdictions in which it regulatory training system we continuously enhance the governance layer's compliance
conducts business. Upholding the bottom line of business ethics the Group continuously refines its integrated management system awareness and performance level effectively safeguarding the Group's standardized
covering risk management internal controls information security and customer privacy protection ensuring sustainable business operation and the legitimate rights and interests of all shareholders.operations through systematic measures. In alignment with regulatory requirements and governance structure updates the Group
revised 26 internal policies including the Articles of Association and introduced 3 new policies strengthening enforcement to ensure In February 2025 the Group organized all directors and senior management to participate
their effective implementation. in the Shanghai Stock Exchange's 2025 Compliance Training for Directors Supervisors and Senior Management of Listed Companies achieving full coverage of compliance training
Board Governance for the governance layer and thus solidifying the theoretical and regulatory foundation for compliant performance of duties by all members. In September 2025 four newly appointed
Sailun Group strictly adheres to laws regulations and supervisory requirements including the Group Law of the People's Republic directors and senior management participated in the SSE's initial appointment training for
of China and the Code of Corporate Governance for Listed Companies and has established a governance structure centered on directors and senior management of listed companies. Through this regular compliance
the Shareholders' Meeting the Board of Directors and the management. The Board of Directors has established four specialized training the Group continuously improves its governance system strengthens internal
committees: the Strategy and Sustainable Development Committee the Audit Committee the Nomination Committee and the control and compliance mechanisms and consolidates a solid governance foundation for
Remuneration and Assessment Committee. Each committee operates with clearly defined responsibilities and professional expertise the Group's long-term stable and sustainable development.assisting the Board in enhancing the scientific rigor and effectiveness of its decision-making. Sailun Group's Regulations on the Work of Independent Directors clearly define the
systems that safeguard the performance of duties by independent directors. It ensures that
independent directors constitute no less than one-third of the Board of Directors including
Shareholders' Meeting at least one accounting professional. This aims to enable independent directors to effectively
participate in decision-making exercise oversight and checks and provide professional
counsel within the Board thereby safeguarding the overall interests of the Group and
protecting the legitimate rights and interests of minority shareholders.Board of Directors
The Company's profit distribution proposal for 2025 is as follows: Based on the total share
capital registered on the record date of the equity distribution a cash dividend of RMB 0.18
(pre-tax) per share will be distributed to all shareholders with a total cash dividend amount
Strategy and Sustainable Remuneration and
Development Committee Audit Committee Nomination Committee Assessment Committee of RMB 591858046.62 (pre-tax). No bonus shares will be issued and no capital reserve will be transferred to share capital.The total expected cash dividend for the reporting period of the Company is RMB 1085073085.47
Corporate Governance Structure (including the cash dividend for the first half of 2025 that has been implemented).At the end of the reporting period the Sailun Group Board of Directors consists of 7 members.This includes 3 independent directors 1 female director and 1 employee-elected director.Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 22Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Initiatives Risk Management Mechanism
Sailun Group continues to refine its institutional framework and strengthen oversight of their implementation across key areas including risk We have established a full-process risk management mechanism
governance business ethics compliance management and information security. The Group has established risk early-warning mechanisms and embedded throughout business operations covering five major risk
internal control processes standardized codes of business conduct and advanced the development of a compliance culture. Concurrently it has categories: strategic market operational financial and legal/compliance.enhanced its information security management system by implementing data classification protection and technical safeguard measures. These Guided by the Risk/Risk Event Classification Standard we scientifically
efforts effectively mitigate various governance risks ensuring the Group's operations remain stable compliant and controllable. categorize risks into high medium and low levels achieving tiered
and classified risk management. Through a closed-loop mechanism of
Risk Management and Control "identification assessment response and monitoring" we promote
In 2025 Sailun Group completed the establishment of its risk management framework and system revised the Risk Management Regulations and proactive prevention and control of major risks comprehensively
fully implemented a risk governance mechanism centered on the "three lines of defense." By fulfilling responsibilities in "building systems fostering enhancing management efficacy and safeguarding the Group's stable
collaboration driving implementation and supervising outcomes" the Group promoted the coordinated operation of its three lines of defense for risk operations and sustainable development.management achieving the objective of precise and integrated risk control. The Board of Directors as the highest supervisory level for the Group's Risk Identification
risk management comprehensively oversees the effectiveness of the Group's risk management system and reviews and approves major risk-related The Group has established a regular structured risk identification mechanism. A
decisions. Guided by the Board the Strategy and Sustainable Development Committee exercises comprehensive supervision over the Group's risk comprehensive risk identification exercise is conducted at least every three years.management work. The Group's Vice President in charge oversees and coordinates the Group's overall risk management efforts ensuring they are Utilizing methods such as workshops and process analysis it covers the five major
closely aligned with the Group's overall strategic plan and that risk management strategies are effectively implemented across all business segments. risk categories including strategy and market risks. Led by individual business units
with overall coordination by the Legal and Risk Control Department this process
results in a Group-wide risk matrix that is developed and regularly updated.Risk Analysis
First Line of Second Third Line Guided by the Risk/Risk Event Classification Standard the Legal and Risk
Defense Line of Control Department organizes the analysis flexibly setting weightings Defense of Defense based on specific business contexts. This process determines risk levels
and designates responsible departments resulting in the generation of a
Risk Matrix and a Material Risk Ranking List. This enables the dynamic re-
evaluation and prioritization of high-risk items.Business Departments Functional Support Departments Oversight Departments
Risk Response
Each Group center direct department I n collaboration with functional Functions such as Internal Audit A tiered response mechanism centered on "proactive prevention and rapid
subsidiary and factory bears frontline support systems including the Finance and Disciplinary Inspection serve response" has been established. It defines differentiated management
responsibility for risk management Center Human Resources Center and as independent overseers. They processes for high medium and low-risk events ensuring responsibilities
within its operational scope. They are Capital Operations Center this line is audit evaluate and supervise the are clearly assigned and measures are effectively implemented.accountable for the identification responsible for the rule-setting resource effectiveness of the risk prevention and
assessment daily monitoring and coordination capability building and control system and the completeness
mitigation of risks holding primary implementation oversight of the risk of internal control implementation Risk Monitoring
responsibility for the outcomes of risk management framework. It drives the ensuring the authenticity and efficacy of A "dual-track monitoring" system linked to performance assessments is
management. deployment and optimization of risk all risk management activities. implemented. Business units conduct daily tracking while the Legal and
management mechanisms Group-wide. Risk Control Department provides quarterly oversight and issues circulars.The effectiveness of risk management is incorporated into performance
evaluations. A closed-loop management process is formed through monthly
reporting and review mechanisms driving continuous improvement.Three Lines of Defense for Risk Management and Control Full-Process Risk Management MechanismAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 23Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Risk Event Management Process
We have established a standardized closed-loop risk event management process. It is designed to enhance our response capability to major risk
events and improve the level of post-event review and corrective action ensuring the entire incident handling procedure is traceable assessable and Sailun Group 2025 Risk Control Specialized
continuously optimized. Empowerment Program case
Event Reporting Event Assessment and Response Plan Formulation To strengthen the risk identification and response capabilities
of frontline personnel and fortify the first line of defense in risk
Upon the occurrence of a risk event the responsible department Based on the Risk/Risk Event Classification Standard a prompt management Sailun Group systematically implemented the
immediately initiates the internal reporting procedure according assessment and classification of the event is conducted. A
to the established classification standard ensuring information specialized response plan is formulated accordingly and "Risk Control Specialized Empowerment Program" in 2025
is escalated to the appropriate management level without following established authority limits submitted to the targeting key departments such as the Procurement Center
delay. appropriate decision-making level for review and approval. Logistics Center and Information Center. The training covered a
series of topics including risk management trade sanctions and
compliance risks and software compliance risks. Through deep
interpretation of regulatory policies analysis of typical industry
violation cases and business scenario simulation discussions we
systematically break down specific risk control requirements and
embed operational procedures into key business processes such
Closure and Review Analysis Event Response and Monitoring as procurement sourcing cross-border logistics and information
system operations. This enables business personnel to clearly
After the event is resolved the department responsible The designated department responsible is accountable grasp risk identification points compliance operation standards
conducts a systematic review within the stipulated timeframe for implementing the approved response plan while and emergency response pathways. This initiative drives the
produces a summary document and archives it. Based on this conducting continuous tracking and monitoring of the transition of risk management from "backstage control" to "front-
the risk control function updates the risk information database event's developments throughout the execution phase. Should end prevention" significantly enhancing frontline employees'
performs analysis and generates regular reports driving the a significant change in the situation occur re-assessment is compliance awareness and risk handling capabilities thereby
continuous improvement of the risk management system. required followed by an escalated report. supporting the Group's stable operations.In 2025 we launched a pilot program for a comprehensive risk review of key business processes. We completed full risk assessments for departments
including the Procurement Center Information Center Logistics Center and the Legal and Risk Control Department identifying a total of 273 high
medium and low-level risks along with 42 key work items. A quarterly tracking mechanism was established to follow up on their management and
control. Building on this we concurrently refined the Group's risk matrix established a historical risk database and integrated internal and external risk
information collection channels gathering over 200 historical risk data points. By conducting risk-oriented audits across production sales R&D and
functional departments we effectively rectified internal control deficiencies.While strengthening institutional development we continued to promote the "Risk and Compliance Updates" and "Risk and Compliance Lecture Hall"
columns and conducted specialized risk control and empowerment training for business departments continuously enhancing all employees' risk
awareness and compliance consciousness.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Business Ethics
Sailun Group adheres to the business principle of "integrity as the
foundation" and continuously improves its business ethics governance
system. Through a sound institutional framework stringent audit
supervision in-depth cultural cultivation and unimpeded whistleblowing Board of Directors As the highest governing body for business ethics responsible for strategic leadership and major decision-making.channels we foster a clean and upright business environment both within
the Group and in its external engagements.Anti-Commercial Bribery and Anti-Corruption Strategy and Sustainable O versees business ethics initiatives comprehensively regularly reviews specialized reports and provides
Development Committee recommendations for improvement.Sailun Group strictly adheres to the Criminal Law of the People's
Republic of China the Anti-Unfair Competition Law of the People's
Republic of China the Anti-Monopoly Law of the People's Republic
of China and all applicable laws and regulations in its operational Sustainable Development
jurisdictions. Core internal policies including the Business Ethics Leadership Team Coordinates group-wide governance efforts and drives policy implementation.Handbook and a Notice on the Establishment of a "High-Voltage Line"
have been established Group-wide. Any form of corruption bribery
fraud conflict of interest or similar misconduct is strictly prohibited.We have established a business ethics governance architecture Sustainable Development Working Team Responsible for setting objectives and establishing policies.characterized by clear authority and responsibility defined hierarchy and
efficient collaboration. Through a governance system of "Board leadership
Committee supervision functional department execution independent
audit verification and disciplinary closed-loop handling" we ensure that Legal and Risk Control R esponsible for the day-to-day implementation of business ethics compliance identifying and assessing
integrity and compliance requirements are embedded throughout the Departments business ethics risks in business processes and driving the integration of compliance requirements into
entire process of Group decision-making execution and oversight. business processes.Audit and Internal Control I ndependently conduct business ethics audits to identify potential risk points promptly detect and report
Department violations of business ethics upward and synchronize relevant information with the Business Ethics and Compliance Working Team.Disciplinary Supervision Reporting directly to the Board responsible for receiving complaints investigating misconduct driving
Committee accountability and overseeing remediation.Business Ethics Governance StructureAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 25Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
In 2025 Sailun Group comprehensively promoted the dissemination and
signing of the Business Ethics Handbook. We utilized an online learning "Building Robust Anti-Corruption Defenses to Support High-Quality Development" –
platform to communicate the handbook's requirements ensuring every Specialized Anti-Corruption Training case
employee clearly understood the code of conduct and compliance
boundaries. This effort achieved a 100% signing rate from all Group
employees including staff at factories subsidiaries. Building on this
foundation we conduct comprehensive business ethics audits across In 2025 Sailun Group organized specialized anti-corruption training
all operational locations and business lines every three years. This year under the theme "Building Robust Anti-Corruption Defenses to
in accordance with the Group Internal Audit Management Regulations Support High-Quality Development." The training was conducted in
and the Business Ethics Handbook we carried out multiple rounds of a combined "online + offline" format achieving 100% participation
specialized business ethics audits. These audits covered key areas such from the board of directors management and all employees.as procurement marketing communications supply chain and anti- The content focused on key issues such as commercial bribery
corruption policies. Through walk-through tests sampling inspections conflicts of interest supplier management and compliance risk
and data analysis we verified the compliance of critical business identification. Through real-case analysis policy interpretation and
processes. A total of 4 key audit projects were completed throughout the scenario simulations the training systematically explained relevant
year with no significant business ethics risks identified achieving a 100% anti-corruption laws regulations and internal codes of conduct.audit remediation closure rate. This initiative strengthened employees' fundamental understanding
of and commitment to maintaining integrity in their work.We deepened efforts to foster integrity awareness among all employees.We organized 11 integrity awareness sessions throughout the year
covering new graduate hires and senior middle and junior-level
employees across the Group and all factories. We also conducted anti- To strengthen supply chain integrity management Sailun Group systematically advanced its supplier compliance governance in 2025 comprehensively
corruption compliance training achieving a 100% coverage rate for all updating the Supplier Code of Conduct. Commercial ethics requirements have been integrated into the supplier onboarding process and ESG due
employees which effectively enhanced their capabilities to identify and diligence procedures achieving compliance standardization and frontloading of compliance expectations. Simultaneously during the reporting period
prevent corruption risks. the Group conducted 30 dedicated training sessions on commercial ethics for suppliers continuously enhancing suppliers' compliance awareness and
performance capabilities and fostering shared value alignment. Building on this foundation Sailun Group established an audit mechanism covering
the entire procurement lifecycle focusing on critical stages including requirement approval supplier selection contract execution and payment
and acceptance. Multiple rounds of targeted audits were carried out using a risk-based approach combining sampling walkthrough testing and data
analytics to identify potential risk areas. Identified issues were systematically recorded in a closed-loop tracking system for corrective actions ensuring
the compliance transparency and efficiency of procurement activities and continuously reinforcing a ethical trustworthy supply chain ecosystem.Employee Business Ethics Training Coverage Rate
100%
Category Targets Progress in 2025
Business Ethics Training Coverage Rate for By 2030 all tire factories within the Group During the reporting period the Qingdao
Directors and Management Personnel Business
Ethics eligible for certification shall obtain anti-bribery Dongying Shenyang and Weifang
100 management system certification. factories have all successfully obtained % ISO 37001 Anti-Bribery Management
System certification.Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 26Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Anti-Unfair Competition Information Security
Sailun Group strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People's Sailun Group places high importance on information security and privacy protection. In 2025 the Group
Republic of China. In 2025 the Group added explicit management requirements prohibiting unfair competition in its continued to deepen its information security governance framework establishing a structure built on
Business Ethics Handbook further integrating the principle of fair competition into its daily operations. Through the "compliance foundation technology enablement and collaborative defense" to comprehensively ensure
Employee Handbook and the Business Ethics Handbook the Group clearly prohibits all forms of unfair competition. business continuity the security of data assets and customer privacy. During the reporting period the Group was
Moreover it rigorously reviews agreements via a full lifecycle contract management system within business processes awarded the DCMM Level 3 certification by the China Information Technology Industry Federation. We continue
to mitigate risks at the source. During the reporting period the Group was not involved in any litigation or material to refine the management mechanism for the full lifecycle of data assets solidify our data foundation and strive
administrative penalties related to unfair competition. to build a "Digital Sailun" that is future-oriented and better aligned with industry development requirements.Violation Whistleblowing The Group strictly complies with the Cybersecurity Law of the People's Republic of China the Data Security
Law of the People's Republic of China the Personal Information Protection Law of the People's Republic of
We encourage and protect internal employees and external partners in raising legitimate concerns ensuring that all reports are China and all applicable laws and regulations in its operating locations. We have continuously improved
addressed in a timely impartial and professional manner thereby continuously promoting a sound business environment. our internal policy system including the Management Regulations for Domestic Customer Master Data of
In accordance with the Working Rules for the Discipline Supervision Committee the Group has established multiple the Sales Center and the Management Regulations for International Market Customer Data Maintenance
reporting channels including a dedicated online reporting page email ( jubaotousu@sailuntire.com) a dedicated of the Sales Center strengthening full-chain management of customer privacy protection proactively
hotline and postal mail. These channels are publicly communicated through the official website and internal mitigating data security risks and safeguarding customer information security. During the year the
communications to ensure accessibility. The system clearly defines core principles for protecting whistleblowers Group formulated and implemented multiple internal regulations including the Group's Regulations on
including strict confidentiality and a prohibition against retaliation. Information Confidentiality Management which clarifies requirements for confidentiality management
access control emergency response and accountability. Responsibility for confidentiality has been
During the reporting period all reports were centrally received and handled by the Discipline Supervision Committee. integrated into the reward and discipline system outlined in the Employee Handbook achieving systematic
Confidentiality requirements were strictly implemented through measures such as limiting information access to a and standardized confidentiality management.minimal number of designated personnel and assigning dedicated staff to manage reported materials thereby addressing
whistleblowers' concerns. The Committee conducted independent investigations into all reports received and took In 2025 Sailun Group further optimized the top-level structure of its information security management. A
appropriate action based on the findings. The reporting mechanism operated efficiently with special oversight carried out global cybersecurity coordination and governance mechanism was established to formulate and implement
in several key business areas and all reported matters were resolved with a 100% case closure rate. information security strategies and plans oversee the effective operation of the security management
system and enhance the Group's overall cybersecurity governance and risk prevention capabilities. A
dedicated information security team was set up to oversee technical protection policy implementation
and daily monitoring. A cross-departmental collaboration mechanism was also built clearly defining the
specific responsibilities of the Legal Human Resources Procurement and various Business Centers in areas
such as compliance review personnel management and supply chain security. This has enabled vertical
integration from top-level design to frontline execution and horizontal collaboration across functions
driving a shift in security management from passive response to active defense and operational validation.During the reporting period the Qingdao Plant was awarded the title of "Demonstration Enterprise for
Trade Secret Protection" by the Qingdao Area of China (Shandong) Pilot Free Trade Zone.Based on clearly defined strategic objectives and governance structure the Group established a closed-loop risk
management system of "regular scanning + targeted testing + emergency response." Through the deployment of
intelligent protection technologies conducting realistic drills and deepening organization-wide security awareness
the Group ensures the coordinated implementation of information security and privacy protection efforts at the
institutional technological and execution levels.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 27Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Information Security Initiatives Emergency Response Initiatives Privacy and Data Security Protection Information Security Risk Culture Initiatives Development
A I Unattended Operation and Maintenance： Offensive and Defensive Drills: Third- Core Data and Business Resilience: Company-Wide Training: Security policies
Leveraging the "Eco-Rubber Cloud" platform an party professional vendors were engaged An active isolation "safe harbor" and codes of conduct are communicated
AI-driven intelligent operation and maintenance to conduct a week-long full-scale disaster recovery architecture has been to all employees. Mandatory online
system with "cloud-edge-device" collaboration penetration test and live-fire offensive and established for core business systems. courses and standardized tests are
has been built. This enables 24/7 proactive threat defensive exercise to test and enhance Critical production data from factories deployed via a digital platform using
monitoring automatic blocking of abnormal IP the effectiveness of the defense system. worldwide is synchronized to the Group's assessments to reinforce learning and
addresses automated virus scanning and removal disaster recovery center to ensure solidify organization-wide compliance
on endpoints and automated reporting of security E mergency and Phishing Drills: Regular business continuity. awareness and knowledge.incidents. emergency response drills and phishing
email simulations for all employees are T echnology-Based Control: Through Training for All Information Center Staff:
"Eco-Rubber Cloud": Core security organized to improve overall emergency measures such as unified endpoint Specialized training is conducted focusing
enhancements were implemented on the response capability and staff vigilance. management mandatory bastion host on the latest threat landscape internal
"Eco-Rubber Cloud" platform. By integrating access and full-link log auditing data security policies and advanced protection
"image scanning" and "component vulnerability 2 4/7 Emergency Response Team: A leakage risks are systematically mitigated. practices. This enhances the ability
detection" development vulnerabilities were dedicated 24/7 emergency response to identify complex cyberattacks and
effectively blocked. Continuous behavior team has been established conducting G lobal Standard Implementation: The respond effectively while strengthening
monitoring further established a dynamic quarterly emergency drills and mature security management system and security operation protocols for critical
protective barrier. subsequent reviews for continuous standards developed domestically have roles.optimization. been extended to all overseas factories
F ull Lifecycle Security Management System: achieving unified global information Training for New Graduate Hires:
A full lifecycle security management system has T hird-Party Strategic Collaboration: security protection. Information security training for campus
been established covering architecture planning Strategic partnerships have been formed recruits covers the protection of Group
development and design deployment testing with professional security vendors information assets daily office security
security operations penetration testing offensive based on a model of "complementary and cybersecurity prevention embedding
and defensive drills and emergency response. capabilities and co-built ecosystems" security awareness from the outset of
Through regular group-wide security scanning integrating specialized resources to their careers.and the maintenance of a risk register closed- construct a multi-layered defense system.loop management has been achieved. Building
on this a comprehensive security assessment
is conducted every six months supplemented
by two specialized penetration tests forming
a continuously improving security protection
mechanism.I nternal and External Audits: A comprehensive
audit system has been implemented to strengthen
compliance oversight. A dedicated task force
conducts annual internal audits covering key areas
such as policy implementation and software/
hardware protection. Additionally external Sailun Group continues to advance the certification of its ISO 27001 Information Security Management System and ISO 27701 Privacy Information Management System.authoritative organizations are engaged to Currently the Qingdao facility has obtained certifications for both the ISO 27001 and ISO 27701 systems. The relevant management system standards are uniformly
perform independent compliance audits. followed and implemented across all domestic and international factories within the Group. During the reporting period no information security incidents or customer
privacy breaches occurred.赛轮集团｜ 2025 年度可持续发展报告 0报1告说明 管理层寄语 关于我们 专题 精益治理：筑牢合规基石 生态卓越：引领低碳转型 价值驱动：智造卓越品质 人文共生：凝聚组织合力 附录 28
03 02 ECO-PLANETLeading the Low-Carbon Transition
Climate Response Environmental Management Green Operations
Sailun Group firmly believes that green development is the only path to the future.Environmental protection has been deeply embedded in our strategy and operations
as we continuously refine our management practices. We are committed to continuous
improvement in compliance-based emission reduction resource conservation and
ecological harmony. Simultaneously we actively address climate change by advancing
energy management and sustainable product innovation to implement low-carbon
transition initiatives collaborating with all stakeholders to create a shared green
future.UN SDGs:About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 29Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Climate Response
Sailun Group actively responds to the national "Dual Carbon" goals by identifying risks and opportunities through scenario analysis. Energy management and the application of green materials have been incorporated
into its strategy. The Group deploys various initiatives around sustainable development goals to continuously enhance its climate response capabilities.Governance
In terms of climate change governance Sailun Group strictly advances relevant Climate Governance Structure
work in accordance with the Sailun Group Policy on Responding Strategy
to Climate Change fully integrating climate change issues into the Group's
sustainable development governance framework. The Board of Directors
bears the highest supervisory responsibility for related matters. The Strategy Board of Directors H olds the highest governance and oversight authority on climate-related matters
and Sustainable Development Committee provides strategic decision-making
support. The Sustainable Development Leadership Team is responsible for
reviewing climate performance and planning response measures while
Strategic Management Office of Sustainability promotes the implementation of Strategy and Sustainable M onitors and evaluates the Group's long-term strategy for tackling climate change and
initiatives and the coordination of targets reporting progress to management Development Committee supports the Board in decision-making and oversight
on a regular basis. The Sustainable Development Working Team composed
of business departments is responsible for the execution and reporting of
specific tasks. Sustainable Development Reviews the Group's performance on climate-related issues and proposes measures for
Leadership Team managing climate risks and opportunities
Drives the implementation of climate risk response measures and organizes actions to achieve
climate goals
Strategic Management Office
of Sustainability C onducts organization-level greenhouse gas inventory and product carbon footprint accounting
D evelops policies for tackling climate change establishes a climate risk management structure and
identifies climate-related risks and opportunities
Sustainable Development Organizes and implements the special action plan for the Group's climate change issues and
Working Team reports work progress to management as requiredAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 30Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Strategy
Sailun Group has integrated climate change response into its core strategy We assess the comprehensive impact of entity risks based on risk levels and exposure degrees. The comprehensive impact of transition risks is
and in accordance with the framework of the Task Force on Climate- evaluated through likelihood and influence. The identified results are as follows:
related Financial Disclosures (TCFD) completed the identification and
assessment of climate-related risks and opportunities. The assessment
covers the production and sales segments of the Group's core tire Matrix of Physical Risk Exposure Levels Matrix of Physical Risk Exposure Levels
business6 7
under the SSP1-2.6 Scenario under the SSP4-6.0 Scenario
and analyzes the potential impacts of various risks across three
time horizons: short-term (within one year) medium-term (within five High High
years) and long-term (more than five years). To comprehensively assess
the potential impacts of risks scenarios covering different warming and
transition pathways were selected as the basis:
-Flood -Typhoon -Flood -Typhoon
SSP1-RCP2.6 SSP4-RCP6.0
SSP1-RCP2.6 (low emission SSP4-RCP6.0 (medium-to-high -E xtreme heat -E xtreme heat
scenario): emission scenario): Assumes Low Low
Achieves net-zero continued global development
emissions after 2050 disparities and uneven mitigation
efforts leading to sustained high Low Degree of risk exposure High Low Degree of risk exposure Highthrough coordinated
mitigation efforts with carbon emissions throughout Matrix of Transition Risk Exposure Levels Matrix of Transition Risk Exposure Levels under the
temperature rise controlled the century with projected
global temperature rise reaching under the Stated Policies Scenario Net Zero Emissions by 2050 Scenarioto around 1.8° C by 2100
approximately 3° C by 2100 High High R ising greenhouse gas
pricing
STEPS NZE S hift in customer behavior
Replacement of current Replacement of current
Rising greenhouse gas products and services
Stated Policies Scenario A normative pathway proposed pricing products and services with with lower-emission lower-emission alternatives
(STEPS): Reflects future by the IEA requiring the energy I ncrease in Raw alternativesMaterial Costs S hift in customer Increase in Raw Material
energy and emission sector to achieve net-zero behavior Costs
trends under current policy emissions by 2050 without relying Costs of Transitioning to
Enhanced reporting
frameworks used to assess on external offsets Low-Emission Technologies Costs of Transitioning Increased negative R egulation of existing E nhanced reporting obligations for emissions
the potential impact of I ncreased negative products and services obligations for emissions to Low-Emission feedback or concerns feedback or concerns from Technologies from stakeholders Regulation of existing
existing policies on climate Low stakeholders
products and services
Low
change
Low Comprehensive possibility High Low Comprehensive possibility High
6 Scope of Business Covered by Climate Risk Identification: Production and sales Transition Risk Exposure Level- High P olicy and Regulatory Risks
of passenger car radial tires commercial vehicle tires and off-the-road tires. Transition Risk Exposure Level-Medium Technology RisksTransition Risk Exposure Level-Low Market Risks
Investment holding and similar businesses are excluded.
7 Scope of Operational Locations Covered by Climate Risk Identification: Qingdao
Factory Dongying Factory Shenyang Factory Weifang Factory Vietnam Factory Comprehensive Impact Matrix of Climate Risks
Vietnam ACTR Factory and Cambodia Factory.Risk level Comprehensive impact
Risk level Comprehensive impact
Physical Risks Transition RisksAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 31Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Risk Category Specific Risk Impact Period Impact Description Response Measures
R einforce infrastructure such as factories and warehouses to enhance wind resistance
Short-to-Medium Typhoons may damage production and laboratory equipment disrupt supply chain ratingsTyphoon Term logistics networks and trigger environmental risks due to hazardous material leaks thereby increasing operating costs and compliance pressures E stablish multi-channel procurement and flexible logistics mechanisms to ensure
supply stability
S trengthen emergency response capabilities by developing contingency plans and
Physical Risks Acute Medium-to-Long Floods may cause damage to factory equipment and interrupt supply chains while conducting regular drillsFlood Term secondary disasters may increase environmental governance risks leading to higher operating costs and production delays Reinforce factory facilities and optimize drainage systems to enhance flood prevention
capabilities
Sustained high temperatures may threaten employee health increase water and D evelop heat stress protection protocols for operations to safeguard employee health
Extreme Heat Medium-to-Long Term electricity loads and compromise the stable operation of infrastructure posing I ntensify inspections of critical equipment such as power supply and air conditioning challenges to business continuity and operational efficiency systems to ensure stable facility operations
Rising Greenhouse Medium-to-Long If carbon emission costs continue to rise they may increase energy and operating
Gas Pricing Term expenditures in the Group's production processes creating potential cost pressures M onitor external policy trends timely refine product carbon management
requirements improve carbon disclosure mechanisms and solidify the foundation
Enhanced
Policy and Stricter requirements for carbon emission monitoring and disclosure may increase for low-carbon developmentreporting Short-to-Medium
Regulatory obligations for Term human and resource investments in data management and compliance while I ncrease investment in low-carbon technologies and equipment to drive emission
Risks emissions introducing potential non-compliance risks reduction upgrades in production processes
P rioritize cooperation with environmentally compliant suppliers to jointly build a
Regulation on
Existing Products Medium-to-Long
Higher environmental standards for tires will drive adjustments in product technology green supply chain
Term increasing research and development and compliance expenditures; failure to respond and Services adequately may affect market access and product compliance
Replacement of
Current Products
and Services with Medium-to-Long
Developing low-carbon new products may require corresponding R&D resources and
Term adaptive modifications to existing production lines thereby increasing capital and
O ptimize product design and production processes and promote low-carbon
Transition Risks Lower-Emission technical pressures to some extent materials and clean technologies
Technology Alternatives C ollaborate with the industry to conduct R&D on new materials to reduce carbon
Risks emissions throughout the product lifecycle
Costs of
Transitioning to Short-to-Medium The application of energy-saving or clean production technologies typically involves I mprove carbon data monitoring to enhance energy efficiency and the precision of
Low-Emission Term significant upfront investments which may impact the enterprise's short-term cash flow emission management
Technologies
Shift in Customer Short-to-Medium As market preference for green tires gradually strengthens it may prompt the Group to
Behavior Term accelerate product structure upgrades imposing higher requirements on R&D response M onitor market and policy trends to enhance product R&D response capabilitiesspeed and market adaptability
Market A ctively respond to market demand for green and low-carbon products to solidify the
Risks product foundation for sustainable corporate development
Increase in Raw Medium-to-Long If environmental policies promote the use of green raw materials or if carbon costs are
Material Costs Term transmitted through the supply chain prices of major raw materials may rise affecting
C ollaborate with suppliers to control costs and mitigate fluctuations in raw material
overall production costs and supply chain stability prices
List of Climate RisksAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 32Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sailun Group is advancing initiatives across three dimensions—
Opportunity Specific Opportunity Impact Description Response Measures production operations supply chain collaboration and low-carbon Category product innovation—to address climate risks and capitalize on transition
opportunities.Drives the upgrade of the product Energy conservation and emission reduction in Continuously increase investment in clean
Growing market structure towards higher value- production operationstechnology R&D to improve product environmental
Products and demand for high- added and more environmentally performance and operational capabilities
Services performance and eco- friendly directions enhances brand
friendly tire products advantages and creates market Provide high-quality eco-friendly tires to enhance
growth space for the Group consumer recognition
Continuously advance energy substitution and efficiency
improvements optimizing the energy structure and
production processes
Promote the substitution of clean energy
in production processes to reduce carbon
Energy and Increased use of clean Reduces corporate operating costs emissions
Resource energy and improved and carbon emissions by improving Enhance internal resource utilization
Efficiency resource efficiency energy efficiency and utilizing clean efficiency and collaborate with suppliers to Supply Chain Climate Risk Responseenergy
optimize efficiency in raw material usage
logistics distribution and other links
B uild climate resilience and collaborate with partners to
promote carbon emission reductions work jointly with
upstream and downstream supply chains and distributor
Enhanced ability to Improves business continuity and Conduct regular climate risk assessments and partners to adopt lower-carbon transportation methods
Resilience cope with climate stability of the operational system and formulate corresponding management strategies
change supply chain under climate-related risks Build a more resilient supply chain system
Growth in tire Provides clear directions for market Closely monitor market trends and adjust product Promotion of Clean Technologies and Products
Market demand driven by growth and business expansion
strategies accordingly
the promotion of new opportunities for relevant company S trengthen the promotion and brand building of eco-
energy vehicles products friendly tire products Accelerate the research and development of sustainable
materials and the application of low-carbon products
List of Climate OpportunitiesAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 33Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Energy Conservation and Emission Reduction in Production Operations
Sailun Group strictly complies with the Energy Law of the People's Republic of China and other applicable energy management laws and regulations Sailun Group continues to advance the optimization of its energy
in its operating jurisdictions. The Group has established policies including the Energy Management System Manual and the Energy Monitoring and structure and actively increases the proportion of clean energy usage.Measurement Control Procedure. During the reporting period three additional policies were issued: the Energy Usage Management Regulations In terms of photovoltaic power generation the photovoltaic projects at
the Energy and Energy-Carrying Medium Pipeline Network Management Regulations and the Provisions on the Allocation of Energy Measuring the Dongying and Weifang factories have been operating stably while
Instruments. These regulations clarify energy usage standards and operational specifications for each manufacturing stage and standardize the the Qingdao factory has commenced the construction of the third-
allocation requirements for measuring instruments on key equipment. phase rooftop photovoltaic project. During the reporting period the
total photovoltaic power generation reached 44.9 million kWh reducing
We have established an energy management structure comprising top management management representatives an energy management team and carbon reductions by approximately 23800 tonnes. Furthermore the
relevant functional departments at all operational levels. The responsibilities of members at each level are clearly defined fostering collaborative efforts to Qingdao factory and the Cambodia factory utilized over 8000 tonnes of
advance energy management. To strengthen the implementation of management practices we have developed an energy-performance linkage mechanism biomass fuel annually achieving a carbon reduction of 12700 tonnes
in accordance with the Energy Baseline and Performance Parameter Control Procedure. The performance evaluations of managers at all levels are linked to effectively replacing a portion of fossil fuels and further strengthening
indicators such as comprehensive energy consumption per unit product electricity consumption per unit and water consumption per unit. the factories' low-carbon operations. Additionally the Group increased
its share of green electricity consumption by purchasing Green
The Group's energy management system spans the entire process of planning implementation inspection and improvement continuously driving Electricity Certificates (GECs). The Shenyang factory procured 9 GECs
enhancements in management effectiveness. As of the end of the reporting period all seven factories8 under continuous operation by Sailun Group during the year corresponding to the consumption of 3.717 million kWh
have obtained ISO 50001 Energy Management System certification achieving a coverage rate of 100%. Furthermore in compliance with General of green electricity which resulted in a carbon reduction of over 1970
Rules for the Allocation and Management of Energy Measuring Instruments for Energy-Using Units (GB 17167-2006) energy measuring instruments tonnes thereby promoting the low-carbon transition of production
were allocated to achieve a 100% coverage rate for key energy-using equipment. During the reporting period building upon the existing ISO 10012 electricity consumption.Measurement Management System certification held by four factories in China the ACTR factory and the Vietnam factory newly obtained this
certification thereby providing a solid metrological foundation for refined management and continuous performance improvement.Vietnam factory ISO 10012 certification ACTR factory ISO 10012 certification Shenyang Factory 's Green Electricity Certificates
8 In 2025 we launched new factories in Mexico Indonesia. The ISO 50001 energy management system certification for these factories will be carried out as scheduled after the completion of the prescribed operational period.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 34Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
The Group has integrated the concept of sustainable development into all To implement long-term energy consumption targets Sailun Group executed multiple energy-saving projects during the reporting period covering
aspects of its production and operations. In the environmental dimension 100% of its continuously operating tire factories. We continued to expand and deepen the application of Energy Management Systems (EMS) carrying
it has achieved dual breakthroughs in emission reduction effectiveness out specialized initiatives focused on process innovation waste heat recovery and efficiency improvements for key equipment.and carbon asset management capabilities realizing full-chain circular Focus on Key Equipment and
value creation through solid waste disposal energy substitution and Upgrade the Energy Management System to Enhance Implement Energy-saving and
carbon asset appreciation. We achieved source emission reductions Precision Management and Control case Carbon-reduction Upgrades case
at the production stage through substituting clean fuels. By leveraging
market-based trading of carbon assets we established a comprehensive
management innovation covering carbon emission accounting asset
development and market trading marking the first conversion of the Sailun Group established and continuously upgraded the Energy Sailun Group continued to advance technical
Group's carbon assets into tangible economic benefits. During the Management System (EMS) to conduct real-time monitoring and data retrofitting for energy saving by upgrading
reporting period we sold over 12000 tonnes of carbon quotas through analysis of energy media such as electricity steam compressed air and equipment and optimizing systems to reduce
carbon asset trading generating approximately RMB 861100 in sales cooling water. During the reporting period the system's monitoring energy consumption. In the Dongying Factory
revenue. This initiative not only facilitated the value realization of carbon scope was further expanded to cover ten global factories with over special retrofitting was carried out on tire
assets but also established a standardized carbon asset management 10000 data collection points. The system achieved data linkage with bead equipment. By replacing high-precision
system for the Group laying a solid foundation for future carbon asset the financial system providing support for refined control of energy transmission components and optimizing control
development and operations. consumption and costs. Through dynamic energy optimization and and speed regulation systems unnecessary
visualized management the system assisted each factory in improving start-stop cycles were reduced by more than
Sailun Group has actively positioned itself in the sustainable finance energy management efficiency and supported management decision- 60% resulting in annual electricity savings of
sector to empower its sustainable development strategy through financial making. approximately 9490 kWh. In the Shenyang
innovation. We successfully collaborated with Standard Chartered Bank Factory lean transformation was implemented
to launch the first sustainability-linked syndicated loan in China's tire for the compressed air system through optimized
industry innovatively binding the Group's sustainable development goals
with financing terms. During the reporting period two KPIs for the first Energy Cascade Recycling and Carbon Reduction
pipeline connections and upgraded automatic
at the Source to Enhance Efficiency case control devices achieving annual electricity year of this loan were fully achieved. The implementation results were savings of 568000 kWh. These measures
independently verified by a third-party institution successfully triggering effectively improved energy utilization efficiency
interest rate concessions and achieving a win-win outcome for both and reduced the carbon footprint of production.environmental and economic benefits. The Group consistently upholds the concept of a circular economy and
continuously advances retrofitting projects for waste heat recovery and
reuse. By efficiently recovering waste heat from sulfur chemical processes
we replace thermal energy generated by fossil fuel combustion while
meeting heating demands in both production processes and employee living
scenarios. This achieves closed-loop cascade utilization of energy reducing
fossil fuel consumption and greenhouse gas emissions at the source. Upon
project implementation significant results were achieved in energy saving
and carbon reduction. Annual self-consumed steam savings reached
10626 tonnes with carbon emission reductions exceeding 3000 tonnes.
These outcomes have significantly improved the Group's energy efficiency
providing core support for achieving annual carbon reduction targets and
offering a mature practical pathway for source-level carbon reduction in tire Compressed Air System Retrofitting at Shenyang
manufacturing. FactoryAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 35Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Establish a Lean Energy Management System and
Explore Pathways for Energy Conservation and Supply Chain Climate Risk Response
Carbon Reduction case We are committed to building a green and resilient supply chain system collaborating with value chain partners to address climate risks
enhance climate resilience and seize opportunities for low-carbon transition.Supply Chain Climate Risk Management Strengthening Green Supply Chain Management
As the leading enterprise in China's tire industry the Group proactively assumes
its leadership responsibility for driving low-carbon transformation across R isk Assessment and Route Optimization: A ccession and Evaluation Guidance: Incorporate carbon emission-related
the sector. The Group has implemented a dedicated "Steam Consumption Conduct regular climate risk assessments at indicators into supplier accession evaluation and assessment processes
Reduction" initiative at multiple overseas tire manufacturing facilities. Focusing all nodes of the supply chain and continuously increase their weighting and prioritize partners with superior environmental
on enhancing steam energy efficiency during the vulcanization process the optimize supplier layout and logistics route performance.Group deployed standardized and replicable technical retrofitting solutions. This design to strengthen supply chain resilience.approach achieved breakthrough results in energy conservation and carbon D ata Management and Collaborative Carbon Reduction: Formulate supply
reduction across the entire Group establishing a new benchmark for large-scale E mergency Response: Establish and implement chain climate goals and action plans regularly review progress and report
energy retrofitting within the tire industry. rapid response mechanisms for extreme to stakeholders; simultaneously collect and monitor carbon emission data
During this special campaign addressing core energy consumption challenges weather and other climate events prioritizing from key suppliers encourage them to conduct carbon accounting and
in the vulcanization process the Group adopted high-performance insulation the transportation of critical materials and implement carbon reduction measures. During the reporting period we
materials and innovative structural designs. These measures included urgent orders to mitigate the risk of operational completed the third-party verification of Scope 3 greenhouse gas emissions
implementing innovative fully enclosed thermal insulation for vulcanizing disruptions. for the year 2025 providing data support for suppliers to implement emission
machines and comprehensive coverage insulation for mold shells effectively reduction measures and optimize internal procurement decisions.suppressing heat loss from equipment surfaces. Simultaneously the level
control valve system was upgraded to enable precise condensate discharge
and efficient steam retention significantly reducing ineffective steam leakage
and losses. By minimizing thermal losses throughout the entire process—from
steam transmission to production utilization—the overall thermal efficiency of Innovating Land-Sea Intermodal Transport to Achieve a Win-Win in Green Logistics Value case
the vulcanization system was comprehensively enhanced. Following project
implementation specific steam consumption per unit of vulcanization output
decreased in a stepwise manner. The initiative saved 49300 tonnes of steam
annually and reduced carbon emissions by over 14600 tonnes. Overall steam
consumption was effectively curtailed thoroughly validating the replicability Sailun Group has consistently adhered to the sustainable development philosophy of synergizing economic and environmental
stability and economic viability of the retrofitting solution. This practice not benefits. By innovating and implementing low-carbon land-sea intermodal transport solutions the Group has effectively reduced
only facilitated the Group's own low-carbon transformation but also drove an carbon emissions in logistics operations while optimizing logistics operating costs thereby achieving dual empowerment through
improvement in the overall energy efficiency levels of the tire industry steadily both carbon reduction and cost savings.advancing China's tire sector toward high-quality development characterized by
green and low-carbon principles. Addressing the dual pain points of high carbon emissions and high transportation costs inherent in traditional land transport modes the
Group has prioritized the optimization of transport structures. It has vigorously promoted low-carbon and low-cost transport methods
including sea transport barge transport and land-sea intermodal transport. For container port consolidation export operations at the
Dongying factory the Group replaced the original long-distance direct trucking mode. During the reporting period a total of 218 containers
were shipped. This initiative not only reduced carbon emissions in the transportation phase but also optimized the transportation cost per
Furthermore we consistently enhance employees' awareness of energy conservation container. Simultaneously the Group is planning and applying clean energy trucks to reduce carbon emissions and energy costs in logistics
through various initiatives including organization-wide energy-saving training posting from a long-term perspective. This has established an integrated green logistics system combining "carbon reduction cost reduction and
of energy-saving reminders and specialized recycling campaigns for recyclable efficiency enhancement" fulfilling the Group's commitment to sustainable development through green logistics practices.materials such as plastic bottles. This integrates low-carbon principles into daily
operations and collectively drives improvements in energy consumption management.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 36Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Promotion of Clean Technologies and Products EcoPoint3 Tires Awarded "GOOD" Rating in
As one of the core pathways of our sustainable development strategy "eco-innovation"9 has defined the direction for clean technology development European Authoritative Evaluation case
and application. We continue to increase R&D investment in this area launch low-carbon and sustainable tire products and verify their environmental
benefits through product carbon footprint accounting. Simultaneously we expand circular solutions such as tire retreading and establish an
environmentally friendly product lifecycle management system.During the reporting period in the latest all-season tire
Promotion of Green Products test conducted by the authoritative European automotive
media "Auto Bild" Sailun Atrezzo 4Seasons Ultra tires
We have independently developed the EcoPoint3 tire which utilizes a pioneering liquid-phase mixing technology. Throughout its entire lifecycle—from were awarded the highest "GOOD" rating and ranked first
raw material procurement and tire manufacturing to usage and end-of-life processing—we have achieved breakthroughs in making the tire product among participating Chinese brands.green low-carbon and sustainable.Leveraging the Group's independently developed EcoPoint3
This technology resolves the "magic triangle" challenge wherein rolling resistance wet grip and wear resistance cannot be improved simultaneously. technology and innovative tread design these tires
By applying this technology the rolling resistance and anti-wet-slip performance of EcoPoint3 passenger car tires both achieve Level A the highest demonstrated balanced and outstanding performance in
rating under EU labeling regulations. Furthermore EcoPoint3 truck and bus tires are the first products to receive the AAA rating under the Tire Grading safety attributes such as dry and wet braking and cornering
Standards issued by the China Rubber Industry Association. Additionally EcoPoint3 tires have obtained authoritative certifications including TüV Mark grip as well as in comprehensive attributes including rolling
and VECTO as well as the China Green Product Certification verifying their superior performance in environmental protection energy conservation resistance wear and noise. These evaluation results validate
and emission reduction. the Sailun Group's innovation capabilities in R&D for high-
performance and energy-saving environmental technologies
in the tire industry.TüV Mark Certificate VECTO Certificate China Green Product Certification Certificate
9 Regarding the "eco-innovation" and sustainable development strategy please refer to the "Sustainable Development Strategy" section of this report.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 37Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Product Carbon Footprint Management
Sailun Group actively responds to the national "Dual Carbon" strategy and systematically advances product carbon footprint management to
scientifically quantify and continuously optimize the full lifecycle carbon emissions of its products.During the reporting period we established a full lifecycle product carbon footprint accounting model covering the passenger car radial tires
commercial vehicles tires and off-the-road tires. Multiple product series have been accounted for key emission reduction links were precisely
identified and support was provided for low-carbon product design and green transformation of the supply chain.Simultaneously we deeply participated in the co-construction of the industry carbon management system. As a primary participating unit we
promoted the compilation publication and implementation of the standard: T/SDXJ 001-2024 Guidelines for Carbon Footprint Accounting and
Reporting of Products Tires. We also contributed to the drafting of the national standard Greenhouse gases - Carbon footprint of products -
Requirements and guidelines for quantification - Tyre and related industry guidelines. Furthermore as one of the first batch of pilot units in China
we participated in the tire product carbon labeling certification work organized by the State Administration for Market Regulation. Invited by the
competent authorities we served as the sole representative of the tire industry at a symposium on product carbon footprints sharing practical
experiences that provided valuable references for the standardization and improvement of the industry carbon management system.Circular Economy Practices
As the first "China Tire Resource Recycling Demonstration Base" Sailun Group is committed to innovating tire recycling technologies and continuously
enhancing resource recovery rates.Beijing Public Transport Integrated Service: Co-creating Green Value for Tires case
Sailun Group has established a full lifecycle tire service project for Beijing Public Transport. Adopting an integrated model of research
production sales and service the project is deeply aligned with operational characteristics covering new tire adaptation in-service
maintenance retreading and standardized scrapping across all stages to facilitate efficient utilization and compliant disposal of tire
resources.Tailored products are provided for diverse operational scenarios. By combining on-site services standardized management the Tire Full
Lifecycle Management System and the scientific application of retreaded tires the project achieves comprehensive process monitoring
and data analysis significantly enhancing resource utilization efficiency.In practical application energy-saving and consumption-reduction effects of products such as EcoPoint3 tires have been significant.These efforts strongly support the green and low-carbon operations of Beijing Public Transport establishing an industry benchmark for
green tire services in the public transportation sector.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 38Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Risk and Opportunity Management Metrics and Targets
Guided by the TCFD framework Sailun Group has fully integrated Sailun Group has submitted emission reduction targets to the Science Based Targets initiative (SBTi) committing to integrate climate action across
climate risk management into its overall corporate risk management the entire value chain into a science-based decarbonization framework. Aligned with the sustainable development strategy operational energy
process. This integration extends to strategic planning investment and conservation and emission reduction targets have been established concurrently. Continued investment in the research and development of clean
financing decisions and daily operations to continuously enhance technologies and green processes will be maintained to advance energy efficiency improvements and carbon emission reductions. During the
climate resilience and ensure the Group's stable operation. reporting period the Group achieved a carbon reduction of 149700 tonnes through the continued promotion of renewable energy and energy-saving
retrofitting of production line equipment. The specific targets and annual progress are detailed as follows:
To ensure the effectiveness of risk management the Board of Directors
of Sailun Group is responsible for supervising and reviewing the Category Targets Progress in 2025
overall progress major decisions and outcomes of climate-related Energy P CR tires: down 17.54% from 2022
risk and opportunity management. Furthermore the achievement Consumption Reduce energy consumption per unit of tire product by 30% from 2022 levels by 2030 TBR tires: down 19.89% from 2022
of performance indicators related to climate change has been OTR tires: down 30.20% from 2022
incorporated into the performance assessments of senior management Carbon PCR tires: down 22.94% from 2022
and department heads to promote accountability. Emissions Reduce carbon emissions per unit of tire product by 30% from 2022 levels by 2030
10 TBR tires: down 24.34% from 2022
O TR tires: down 37.29% from 2022
Risk Identification
The greenhouse gas emission data11 for Sailun Group in 2025 are presented in the table below:
R egularly identify climate-related risks and opportunities for each factory
taking into account external policies climate change trends as well as the Indicator Unit 202312 2024 2025
specific operational realities and business characteristics of each facility.Scope 1 GHG emissions13 thousand tonnes CO2 equivalent 420.17 622.58 1054.17
Scope 2 GHG emissions14(Location-based) thousand tonnes CO2 equivalent 786.29 825.30 760.90Risk Assessment
Scope 2 GHG emissions14(Market-based) thousand tonnes CO2 equivalent / / 758.93
E valuate the identified risks by assessing their likelihood of occurrence and
potential impact thereby determining risk priorities and their implications Total GHG emissions (Scope 1 + Scope 2)（Location-based） thousand tonnes CO2 equivalent 1206.46 1447.88 1815.07
for operations. Total GHG emissions (Scope 1 + Scope 2)（Market-based） thousand tonnes CO2 equivalent / / 1813.10
GHG emission intensity (Scope 1 + Scope 2)（Location-based） thousand tonnes CO2 equivalent / RMB million 0.046 0.046 0.049
Risk Response GHG emission intensity (Scope 1 + Scope 2)（Market-based） thousand tonnes CO2 equivalent / RMB million / / 0.049
B ased on the evaluation results develop and implement specific response plans. Scope 3 GHG emissions15 thousand tonnes CO2 equivalent / 4.969.47 6270.41
This includes establishing contingency plans to ensure business continuity and
integrating climate considerations into long-term strategic planning;
10
Drive the organization's low-carbon transition and reduce carbon Our carbon emission target is based on the year 2022 and each product line is required to achieve a 30% reduction target.emissions through sustained investment in green technologies and the 11 The consolidation method of emissions is based on operational control rights.implementation of energy efficiency improvements. 12 After publishing the 2023 Sustainability Report we engaged a third party to verify our 2023 GHG emissions data and issue an assurance report. During the verification
process we updated the electricity emission factors to further enhance data accuracy. As such the revised 2023 emissions data shall prevail.
13
Monitoring and Improvement S cope 1 greenhouse gas emissions mainly come from natural gas diesel gasoline liquefied petroleum gas coal combustion and fugitive sources with emission factors referenced from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories
Conduct regular reviews and evaluations to monitor the effectiveness of the 14 S cope 2 greenhouse gas emissions mainly come from purchased electricity and steam with the electricity emission factor referenced from the national average CO2
implemented response measures and refine the risk management process emission factor for electric power in the 2023 Announcement on Issuing Carbon Dioxide Emission Factors for Electricity and the steam emission factor referenced from the
in response to internal and external changes; Greenhouse Gas Accounting and Reporting Guidelines for Chemical Production Enterprises.Organize regular emergency drills and training sessions to enhance the team's 15 Scope 3 greenhouse gas inventory data covered the following categories: Category 1 Purchased Goods and Services Category 2 Capital Goods Category 3 Energy-related
awareness of climate risks and their emergency response capabilities. Activities (excluding those included in Scopes 1 and 2) Category 4 Upstream Transportation and Distribution Category 5 Waste Generated in Operations Category 6
Business Travel Category 7 Employee Commuting Category 9 Downstream Transportation and Distribution and Category 12 End-of-Life Treatment of Sold Products.Climate Risk Management ProcessAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 39Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Environmental Management Our Governance
Sailun Group regards environmental compliance as the baseline Sailun Group has established an environmental management structure comprising the Strategy and Sustainable Development Committee the Group
of its operations continuously improving its management system Sustainable Development Leadership Team the Production System Sustainable Development Working Team and the Sustainable Development
strictly controlling production emissions and striving to reduce Working Team at each factory. This framework features clear roles and responsibilities covering the entire process from strategy formulation to
the environmental impact of its operational activities. The Group is execution effectively driving the implementation of environmental policies.committed to fulfilling its environmental responsibilities and contributing
to the development of a sustainable ecological environment.Strategy and Sustainable Development Committee
Responsible for researching sustainability strategies and building
Our Goals environmental management systems overseeing strategic planning
and decision-making related to environmental matters
During the reporting period Sailun Group focused on the core
objectives of "strengthening environmental awareness standardizing
solid waste management and promoting low-carbon development" Group Sustainable Development Leadership Team
rigorously implemented various environmental management initiatives
driving deeper and more substantive progress in environmental Formulates medium- and long-term sustainability plans and environmental
practices. goals for the Group monitors commitments and performance on
key environmental issues identifies major environmental risks and
opportunities and develops response measures
Production System Sustainable Development Working Team
Implements the Group's environmental strategy plans and
executes annual environmental management initiatives provides
guidance supervision and inspection on energy environment and
occupational health and safety at affiliated factories and compiles
and submits related environmental data and documentation
Sustainable Development Working Team at Each Factory
As the primary executors of environmental work they implement
requirements from the Production System Sustainability Team carry
out environmental management tasks and coordinate with higher-
level guidance supervision and inspection
Sailun Group Environmental Management StructureAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 40Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Initiatives
Guided by environmental objectives Sailun Group solidly advances various environmental improvement projects continuously improves management mechanisms strengthens compliance foundations and drives steady
enhancements in environmental performance.Environmental Management
Sailun Group consistently refines its institutional system strengthens regular environmental reviews ensuring the implementation of implementation of policies facility operations and production
performance guidance deepens process audits and risk control environmental objectives and management measures. processes while further refining specific risk points within the
and enhance the abilities and literacy of all employees to ensure the production process to ensure the continuous and effective operation
effective operation and continuous improvement of the environmental During the reporting period we conducted self-assessments on of a standardized environmental risk management system. During the
management system. environmental policy compliance of the Group's subsidiary factories reporting period the Group's environmental protection investment
through methods such as document reviews on-site inspections amounted to RMB 42.16 million.We strictly comply with the environmental laws and regulations of our and sampling verification. These assessments covered key areas
operational locations including the Environmental Protection Law of including exhaust gas emissions hazardous waste management and We conduct on-site review of the environmental management system
the People's Republic of China the Law on Environmental Protection the operation of environmental protection equipment. The results in accordance with ISO 14001 standards organizing review meetings
and Natural Resource Management of Cambodia the Environmental provide a clear basis for system optimization and environmental risk and on-site evaluations to ensure continuous compliance of our
Protection Law of Vietnam and the General Law of Ecological Balance management in the following year. operations with relevant requirements. Additionally we engage third-
and Environmental Protection of Mexico. Additionally we rigorously party organizations annually to conduct comprehensive audits of all
implement internal policies such as the Environmental Occupational At the same time we continuously monitor significant environmental continuously operating factories17 based on these standards verifying
Health and Safety Management Manual providing clear execution factors and major risks through internal management regulations the effectiveness of the system's implementation.requirements for environmental management. Building on this regularly evaluate compliance with environmental performance
foundation we incorporate indicators such as pollutant emission indicators and incorporate the results as one of the bases for adjusting Furthermore we organize environmental training sessions covering
compliance and emission compliance rates into the performance management compensation. In 2025 all factories operational prior all affiliated factories through activities such as policy interpretation
16
assessments of factory general managers and heads of safety and to the reporting period carried out environmental risk identification case analysis and practical exercises. These initiatives are designed to
environmental departments. The Safety and Environmental Department and assessment activities. The efforts covered the entire production enhance all employees' awareness and capabilities in environmental
systematically collects emission data and environmental issues through and operation process focusing on multiple levels including the compliance energy conservation and carbon reduction.
16 I n 2025 we commenced operations at our new factories in Mexico Indonesia. Systematic environmental risk assessments for these facilities will be conducted as planned after they achieve stable full-capacity production.
17 In 2025 we commenced operations at our new factories in Mexico Indonesia. Environmental audits for these facilities will be conducted as planned after they achieve stable full-capacity production.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 41Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Compliant Emissions
Sailun Group strictly complies with the laws and regulations in its operational locations continuously improves its internal management system and ensures the compliant management and standard-compliant discharge of
pollutants. During the reporting period we established and improved the Waste Gas Management Regulations Wastewater Management Regulations Industrial Solid Waste Management Regulations and Environmental Protection
Project Management Regulations for New Modified or Expanded Projects covering the entire process control of pollutants from generation to disposal providing a guarantee for consistently enhancing the standardization and
long-term effectiveness of the Group's environmental governance.Wastewater Management Waste Gas Management Waste Management
Sailun Group manages wastewater in accordance with the Water Sailun Group adheres to the Atmospheric Pollution Prevention Sailun Group strictly implements the laws regulations and policy requirements
Pollution Prevention and Control Law of the People's Republic of China and Control Law of the People's Republic of China the for waste disposal in its operational locations. We have established a waste
the Pollutant Discharge Standards for the Rubber Products Industry the Integrated Emission Standard of Air Pollutants the Government classification system and standardized disposal processes implementing full-
Minister of Env. Decree No. 5 year 2014 Regarding Effluent Standards and Regulation no. 22 of 2021 on Environmental Protection process management of hazardous waste from generation storage to transfer.the discharge standards of each operational location. Our wastewater Organization and Management and relevant local emission Each factory develops management plans ensures the full-lifecycle management of
mainly includes circulating water discharge and domestic sewage. They standards. We implement comprehensive physical and chemical hazardous waste through measures such as maintaining records and standardizing
are treated through wastewater treatment facilities and water quality methods to treat pollutants such as VOCs and particulate matter transfer documentation and commissions qualified third-party entities for compliant
testing is regularly commissioned from qualified third-party institutions. generated during production. Waste gas treatment facilities disposal to ensure the lawful transfer and treatment of hazardous waste. For general
During the reporting period wastewater discharge from all factories are equipped with online monitoring systems as required by solid waste we entrust it to professional units permitted by environmental authorities
within the Group complied with the legal and regulatory requirements operational locations enabling continuous monitoring and for recycling or incineration for power generation. While improving compliant waste
of their respective operational locations. tracking of emission data. On this basis we engaged a third party management we actively promote waste reduction at the source and resource
to conduct quarterly comparative testing to ensure that waste utilization. We set clear waste reduction targets and incorporate them into the annual
gas management achieves compliant treatment. environmental protection work plan guiding each factory to reduce waste generation
in production through technological improvements process optimization and
In 2025 we continued to advance the upgrading of waste management enhancements.gas treatment technologies. During the reporting period the
Qingdao factory has added multi-stage emulsion spray towers During the reporting period all factories within the Group carried out various waste
to its existing pollution prevention facilities to reduce pollutant recycling and reduction practices. Regular resource classification and recycling
emissions. The Dongying factory completed the upgrade of management enabled the large-scale recovery and reuse of solid waste such as
its waste gas treatment system. To further reduce pollutant waste wood waste rubber and scrap metal. During the reporting period the Qingdao
emissions from production processes the factory invested RMB factory utilized waste oil purification equipment to filter used mineral oils for reuse as
7.8 million to add multiple sets of emulsion absorption and process oil. This initiative achieved a harmless recovery and disposal volume of 215
activated carbon combined treatment technologies significantly tonnes of waste oil effectively reducing the final disposal volume of hazardous waste.enhancing waste gas purification capacity. Simultaneously it Waste treatment at all factories within the Group complies with relevant requirements
optimized the emission control system for sulfurization process in their respective operating locations.waste gases practicing green manufacturing responsibilities
through refined environmental management and promoting
a deep and substantive low-carbon transformation of the This initiative achieved a harmless recovery and
factory. During the reporting period waste gas emissions from disposal volume of waste oil
all factories within the Group consistently met the relevant
requirements of their operational locations. 215 tonnesAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 42Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Performance
In accordance with the ISO 14001 environmental management system standards Sailun Group has established an efficient environmental management system and actively promoted environmental certification across its
production facilities. As of the end of the reporting period all seven continuously operating factories of Sailun Group18 have obtained ISO 14001 environmental management system certification achieving a 100% certification
coverage rate. Meanwhile wastewater exhaust gases and waste materials from continuously and stably operating factories are discharged in compliance with regulations with no environmental violations or penalties recorded.
03 04 05 01 Qingdao Factory 04 Weifang Factory
02 Dongying Factory 05 Vietnam Factory
03 Shenyang Factory 06 ACTR Factory
01 02 07 Cambodia Factory
0607
18 I n 2025 we newly launched and put into operation factories in Mexico Indonesia. The ISO 14001 environmental management system certification for these facilities will proceed as planned upon completion of the required operational cycles.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 43Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Green Operations
Sailun Group integrates green and low-carbon concepts throughout its entire daily operational process dedicated to achieving efficient From Passive Descaling to Proactive Prevention: A
resource utilization and circulation. We promote the conservation and recycling of resources such as water and process materials actively New Paradigm for Cooling Tower Water Treatment
fulfill ecological protection responsibilities and continuously enhance the green and low-carbon level of operations through practices such as
green office management.To address the issue of high hardness in makeup water for
cooling towers and the resulting scaling during operation the
Dongying factory installed dedicated softening equipment
Our Goals utilizing ion exchange technology. This effectively removes calcium and magnesium ions from the water at the source
Sailun Group is committed to systematically improving resource utilization efficiency and ecological protection levels continuously advancing thereby inhibiting scale formation. Following the retrofit
sustainable operations. We have established clear water conservation targets: with 2024 as the baseline reduce the water consumption per unit the stability of the cooling tower system has significantly
of tire product by 15% compared to 2024 by 2030. Meanwhile we will continuously improve the recycling rate of packaging and transportation improved. The facility now achieves a daily water saving of 51
materials deepen green office practices to reduce energy and resource consumption in daily operations and actively explore innovative pathways for cubic meters and reduces system energy consumption by over
biodiversity conservation. 7%. These measures not only conserve water resources but
also effectively extend equipment service life achieving a dual
improvement in resource utilization efficiency and equipment
Our Governance reliability.The resource conservation green office management and biodiversity protection work of Sailun Group are respectively managed by relevant business
departments such as the Production Center the Group Office and Strategic Management Office of Sustainability. The specific management structure is
detailed in "Environmental Management - Our Governance" and "Sustainable Development Governance - Our Governance" of this report.Our Initiatives
Sailun Group regards reducing resource consumption minimizing operational carbon footprint and protecting the ecological environment as the core
direction of green operations. Through refined management measures we comprehensively advance practices in production office management and
ecological protection to improve resource utilization efficiency and environmental friendliness.Resource Conservation
Sailun Group continues to refine its water resource management system. During the reporting period we issued the Provisions on Water Resource
Management to standardize the use and management of water resources at the institutional level. This regulation governs the entire process of water
withdrawal usage recycling treatment and discharge across all units thereby promoting controllable total water consumption benchmarking
efficiency against industry leaders cascaded utilization of waste heat and compliant discharge of wastewater.Dongying Factory Water Softening Ion Exchange System
We actively advance water circulation and water-saving renovation projects across our factories. Through technological upgrades and process
optimization we enhance the efficiency of water resource utilization.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 44Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
In the management of packaging material resources Sailun Group has continuously optimized
its management practices dedicated to reducing packaging material usage in tire products and Green Manufacturing Benchmark Practices: Dongying Factory's Circular Empowerment for
enhancing resource utilization efficiency. By implementing recycling strategies incentivizing Sustainable Development
suppliers to use recyclable packaging materials and promoting automation and technological
innovation the Group reduces packaging waste at the source establishing a resource-conserving During the reporting period the Dongying Factory deepened its
and circular regeneration management model. focus on building a circular economy and green manufacturing
system establishing a comprehensive environmental
Lean Operation Practices: Implementation of Fully Automated management system and is committed to building advanced
Packaging Technology green tire production capabilities. In 2025 it was successfully
recognized as a National Green Factory setting a benchmark for
green intelligent manufacturing in the tire industry.During the reporting period the Group practiced the concept of green development
through technological innovation focusing on quality improvement efficiency Addressing discarded sheetings generated during the tire
enhancement and resource conservation in the tire packaging process. The production process the Dongying Factory constructed a full-
Qingdao Factory independently developed a fully automated tire packaging chain circular management system encompassing "waste
machine achieving an automated and intelligent upgrade of the entire packaging recovery refined processing quality inspection and circular
process to create an efficient green production model. reuse." Approximately 130000 meters of sheetings are recovered
daily effectively mitigating environmental risks associated with
This equipment features a pioneering modular design based on parametric traditional landfilling and incineration disposal significantly
programming capable of seamless integration with Warehouse Management reducing solid waste generation and substantially improving Plastic Sheeting Sorting Machine
Systems (WMS). It automatically adapts to diverse packaging requirements resource recycling efficiency.including full and semi-packaging for tires of all specifications raising the
packaging pass rate to 99% and increasing comprehensive production efficiency In terms of source reduction and control of hazardous waste the Dongying factory invested 1.2 million RMB in special funds to
by 40% compared to traditional equipment. Equipped with a high-precision visual establish a project for the recovery and recycling of used industrial lubricating oil and waste hydraulic oil. Through regenerative
intelligent decision-making system it constructs a complete intelligent closed loop treatment of the discarded oils the regenerated oils are returned to the production process for reuse achieving a closed-loop
from identification to execution and monitoring. With a complete independent cycle for resource utilization of waste oil. This approach reduces the generation of hazardous waste at the source and strictly
intellectual property rights system established this equipment sets an industry prevents the risk of secondary pollution. This initiative further strengthens the enterprise's green manufacturing system across
benchmark in the field of automated tire packaging. its entire lifecycle and provides a replicable practical model for the tire industry's efforts in reducing reusing and sustainably
transforming hazardous waste management.Currently this equipment has been successfully deployed on a large scale in
multiple factories including those in Qingdao Dongying Vietnam and Cambodia.It effectively reduces reliance on manual labor minimizes packaging material
loss and enhances resource utilization efficiency driving the transformation of
factory operations toward green management through autonomous intelligent
manufacturing capabilities.Increasing
40%
comprehensive production efficiency by compared to traditional equipmentAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 45Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Green Office Biodiversity Conservation
To institutionalize and popularize the concept of green office practices Sailun Group attaches paramount importance to biodiversity conservation throughout the development construction and operation phases
Sailun Group launched four quarterly thematic campaigns in 2025: "Low- of projects. Strict adherence is maintained to ecological red lines and environmental access requirements with all new projects undergoing
Carbon Office Season" "Circular Ecology Season" "Climate Empowerment environmental impact assessments during their development stages.Season" and "Warm Winter Public Welfare Season." These initiatives
encompass multi-dimensional measures including double-sided printing In tire product research and development international ecological standards are strictly followed with a focus on biodiversity conservation and
waste battery recycling allocation of idle assets green commuting hierarchical control of heavy metal substances. Formulas free from heavy metals and eco-friendly additives are prioritized. Trace thresholds for
and water and electricity conservation effectively reducing resource elements such as lead cadmium mercury and hexavalent chromium are established and a full-process traceability system is implemented. Through
consumption and carbon emissions. Furthermore by establishing a optimization of materials and processes the risk of heavy metal migration is controlled within safe limits minimizing ecological impacts on soil and
carpooling platform and operating shuttle bus services at the Group water bodies. During the reporting period continuous efforts were made to advance ecological construction within factory zones and industrial parks
Headquarters approximately 1936 kilometers of travel mileage were aiming to create green spaces that integrate both ecological benefits and landscape value. Nearly 500 trees shrubs and flowers were planted at the
reduced monthly. Concurrently measures such as mandatory double- Group Headquarters campus. In factories located in Qingdao Shenyang and other regions more than 35000 trees were planted and nearly 6000
sided printing have been implemented cumulatively saving approximately square meters of lawn were laid. While improving the ecological environment these initiatives have fostered a healthier and more livable working
440000 sheets of paper and preserving over one hundred trees during environment for employees integrating green concepts into operational practices.
the reporting period thereby demonstrating a concrete commitment to
ecological protection responsibilities. Safeguarding Aquatic Ecological Security: Sailun North America Partners with 4ocean for Aquatic
Ecosystem Restoration case
Cumulatively saving paper approximately
In 2025 Sailun North America partnered with the ocean
440000 conservation non-profit organization 4ocean to launch a sustainable sheets project for clean oceans focusing on responsible management
of the entire tire lifecycle. Under this initiative for every Sailun
ERANGE EV19 tire sold Sailun North America funded 4ocean's
professional teams to remove two pounds of plastic waste from
oceans rivers and coastlines. During the reporting period Sailun
North America supported the project in cumulatively removing
165000 pounds of plastic waste from water bodies directly
mitigating the negative impact of plastic pollution on aquatic
ecosystems. This effort extends the environmental responsibility
of tire products throughout their lifecycle—from manufacturing
to ecological restoration—and conveys Sailun's commitment to
ecological sustainability to global markets.
19 ERANGE | EV is a new-generation product developed by Sailun specifically for the electric vehicle market leveraging EcoPoint3 technology. It represents the global debut
of an electric vehicle tire series launched by Sailun in 2022 targeting the North American market. The tire's wet grip performance and rolling resistance performance are
both at the forefront of international standards.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Empowering the Future of Communities: Sailun Collaborates with GPSNR to Build a Sustainable Natural Rubber Industry Ecosystem case
As a member of the Global Sustainable Natural Rubber Platform (GPSNR) Sailun Group actively responded to the requirements of the shared investment mechanism. It led and partnered with strategic partners in the
natural rubber sector to launch the "Sustainable livelihoods and ecological education promotion project for natural rubber smallholders in eastern Thailand" in Thailand. The project invited the Rayong Provincial Office
of the Rubber Authority of Thailand (RAOT Rayong) to serve as technical advisors for planting techniques and collaborated with Save the Children Thailand to manage community ecological education ensuring scientific
implementation through professional expertise. Through multi-party collaboration the project effectively promotes the sustainable development of the natural rubber ecological chain. The project covers 500 rubber
smallholder households 3 schools and 300 enrolled students in local Thailand.The natural rubber industry serves as a critical economic pillar for millions of smallholder families in eastern Thailand. Based on this the project focuses on three precise directions: First empowering smallholders by
conducting training on ecological tapping and compliance for rubber farmers establishing a compliance consultation network comprising "1 central station + 8 fixed stations + 5 mobile stations" compiling technical
materials and prioritizing support for women and youth to enhance sustainable production capabilities. Second improving soil quality by designating demonstration plots distributing soil improvement materials and
tools free of charge promoting ecological planting techniques optimizing the growth environment of rubber forests and increasing both yield and income. Third fostering ecological education by renovating facilities
at three schools attended by children of rubber farmers including Guanghua School and Laizengli School. The project established natural rubber ecological education corners and relevant courses organized thematic
activities and set up special scholarships to support the growth of rubber farmers' children thereby building a future for the sustainable development of the natural rubber value chain.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 47Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Safeguarding the Boundaries of Green Ecosystems: Supporting Green Forestry Operations and Community Engagement case
During the reporting period MAXAM Tires a subsidiary of Sailun Group focused on meeting the ecological needs of the
agricultural and forestry sectors by leveraging technological innovation to strengthen environmental protection. Addressing
the industry pain point of "soil compaction" commonly encountered in forestry machinery operations—which leads to forest
degradation and hinders seedling growth—MAXAM introduced a green solution for forestry tires and an optimized wide-
tread profile design was adopted. Leveraging high buoyancy characteristics to expand the contact area ground pressure was
significantly reduced thereby preserving the soil pore structure of forests and retaining ecological space for sustainable forest
regeneration. Simultaneously We innovatively adopted steel wire buffer layers and specialized anti-cutting formulation to
significantly enhance tire puncture resistance and extend product service life. By reducing tire waste generation at the source
through technological innovation we promote green development in forestry operations.For two consecutive years MAXAM served as the exclusive tire sponsor partnering with local distributors to jointly support
the "Britain's Fittest Farmer (BFF)" competition initiated by the UK publication Farmers Weekly. The competition covered
agricultural practitioners across all regions of the United Kingdom. Through physical challenges related to farming
activities it focused on the physical and mental well-being of farmers promoting healthy lifestyles within the industry and
strengthening community connections. By deeply engaging with the UK agricultural community through this competition
MAXAM not only communicated its product performance advantages but also fulfilled its commitment to agricultural
practitioners. This approach achieved a deep integration of brand value and social value encompassing full lifecycle
management from green product design to industrial ecosystem empowerment.Our Performance
During the reporting period Sailun Group achieved positive progress in resource management daily energy conservation and consumption reduction All continuously operating factories actively carry out the recycling and
and biodiversity protection through packaging material recycling green office initiatives and biodiversity conservation practices. reuse of packaging and transportation materials. To date approximately
over 20000 tonnes of plastic sheeting have been recovered achieving
a carbon reduction of nearly 100 tonnes through reuse. Additionally
Target Category Target Progress in 2025 123300 empty steel bobbin boxes 137500 transport boxes 461500
plastic and iron pallets and 146800 bead wire reels were recovered
which effectively enhancing resource circularity.With 2024 as the baseline reduce water During the reporting period the Group reduced
Water consumption per unit of tire product by water consumption per unit of tire product by
Resource compared to 2024 by 2030 compared to 2024
Management
15%9.6%赛轮集团｜2025年度可持续发展报告0报2告说明管理层寄语关于我们专题精益治理：筑牢合规基石生态卓越：引领低碳转型价值驱动：智造卓越品质人文共生：凝聚组织合力附录48
03 ECO-PRODUCTION04 Delivering Excellence in Intelligent Manufacturing
Quality and Safety R&D Innovation Dedicated Service
Responsible Marketing Supply Chain Management
Sailun Group consistently prioritizes product quality and safety as its primary
responsibility driving product advancement through continuous research and
innovation. We value customer needs are committed to delivering reliable service
experiences and uphold responsible supply chain management. By continuously
optimizing our products services and partnerships we strive to build a trustworthy
corporate image and create long-term value for the market and society.UN SDGs:Featured Topic: Phase I of the East China Intelligent Connected Vehicle Proving Ground Enters Operation Establishing a
World-Class Comprehensive Testing Facility
During the reporting period Sailun Group achieved controlling interest in the East China Intelligent Establishing a New Strategic High Ground
Connected Vehicle Proving Ground through capital injection. The completion and operational launch
of Phase I marks a milestone breakthrough in the Group's R&D testing capabilities fully establishing an The proving ground was established through joint investment by Sailun Group the Changchun Automotive Test
end-to-end closed-loop inspection process spanning from tire product design to real-world validation Center Co. Ltd. and China First Highway Engineering Co. Ltd. It is dedicated to building "China's Premier World-Class"
thereby injecting core technological momentum into the Group's high-quality development. comprehensive proving ground for complete vehicles and components thereby supporting national automotive
industry development and the construction of intelligent transportation systems. The project covers a total planned area
of approximately 9000 mu with five designated zones and 28 test roads under construction. It encompasses hundreds
of typical scenarios for intelligent connected vehicle testing and comprehensive testing facilities providing all-weather
development verification testing and inspection services for automobiles and components.Intelligent Connected Vehicle Test Zone
Performance Durability
Test Zone Test Zone
Indoor Test Zone Operations and Maintenance Service Zone
Aerial view of Phase I of the East China Intelligent Connected Vehicle Proving Ground Five Zones of the Proving GroundCurrently the six test roads and facilities in Phase I have been commissioned. Phase II is advancing steadily. Upon full completion it will achieve
comprehensive coverage for intelligent performance and testing capabilities for both complete vehicles and components.Completed Test Roads
Intelligent Connected Vehicle Test Zone Braking Test Road Comfort Test Road
Off-the-road tire testing platform
Translating Capabilities into New
Wet Round Track Pass-by Noise Test Road Straight-line Performance Test Road Achievements
The capabilities of the proving ground have been converted into
Building Core New Capabilities tangible testing service outcomes and customer value. During the
reporting period the proving ground served dozens of industry
The proving ground established China's first off-the-road tire (tracked and solid tire) testing platform filling a gap in the domestic professional testing clients and completed nearly 50 testing cases. Specifically the
sector for off-the-road tires and their associated equipment. Concurrently the proving ground has obtained accreditation from the Ministry of Industry intelligent connected vehicle testing zone conducted various
and Information Technology of the People's Republic of China for inspection and testing services enabling it to provide automakers with one-stop R&D tests for ADAS (such as Automatic Emergency Braking and
announcement declaration and compliance vehicle testing services. Currently the braking and noise test tracks have received conformity certification from Automatic Parking); the braking testing zone carried out R&D on
the internationally authoritative certification body TüV against UN R117(Vehicle Type Approval Testing) and ISO 10844-2021(Acoustics — Specification of test dry and wet braking performance for multiple tire specifications
tracks for measuring sound emitted by road vehicles and their tyres) regulatory standards. The facility's professional capabilities have become a key platform and OEM matching trials; and the comfort testing zone executed
empowering global market collaborations. During the reporting period Sailun's Kazakhstan subsidiary organized customer representatives at this site for an tire selection and chassis validation projects for multiple
in-depth experience event of RoadX EcoPoint3 tires. Through comprehensive performance verification across dry/wet braking noise and wear resistance the vehicle models. These efforts provided robust support for the
product's superior performance garnered high recognition from customers. This not only demonstrated the Group's technical strength but also effectively Group to deepen strategic cooperation with major automobile
consolidated long-term mutual trust with local partners laying a solid foundation for deepening operations and development in overseas markets. manufacturers and expand into high-end supply markets.Setting New Industry Benchmarks
The East China Intelligent Connected Vehicle Proving Ground is actively participating in the formulation of industry norms and standards while
proactively planning new business areas to enhance its industry influence.Embracing New Responsibilities for
Standard and Policy Formulation Frontier Business Layout Development
While pursuing technological breakthroughs the proving ground
Standards and policies co-developed include: The proving ground's flight test base has been included as proactively assumes its social responsibility for science popularization
a key project in the Dongying City Three-Year Action Plan for
Classification and Evaluation of Automotive Test Facilities and education. During the reporting period the proving ground hosted High-Quality Development of the Low-Altitude Economy
by the China Association of Automobile Manufacturers over one hundred teachers and students from Dongying High-tech
I n the future the proving ground will focus on layout Zone Experimental School for on-site visits actively promoting deep
M easures for the Administration of Road Testing and for flying car testing while simultaneously advancing integration among industry academia and research to cultivate talent
Demonstration Applications of Intelligent Connected the planning and implementation of testing services for for the long-term development of the sector.Vehicles in Dongying City (Trial) unmanned driving new energy vehicles and high-end
intelligent agricultural machinery
Implementation Rules for Road Testing and Commercial
Demonstration Applications of Low-Speed Unmanned
Vehicles in Dongying City (Trial)
Study Tour and Visit ActivitiesSailun Group Co. Ltd. ｜ 2025 Sustainability Report About the
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Report from Our
About Special
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Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Quality and Safety
Sailun Group has always adhered to its original aspiration of "making great tires" regarding product quality and safety as the cornerstone
of sustainable development. We have established and continuously improved our governance structure to manage quality-related risks and
opportunities. By operating management processes covering quality management systems product testing recall mechanisms and quality
culture construction we ensure the safety and reliability of our products thereby contributing to the high-quality development of the Group.Governance
Sailun Group has established a comprehensive sustainable development governance structure and incorporated product quality and safety matters
within its management scope. The specific composition and mechanisms of this structure are detailed in Sustainable Governance. Under this
structure the Quality Working Team as a member of the Group's Sustainable Development Working Team reports monthly to the Group's Sustainable
Development Strategy Management Office on the progress of product quality and safety.Board of Directors
Strategy and Sustainable Development Committee
Group Sustainable Development Leadership Team
Quality Working Team
Product Quality and Safety Governance StructureSailun Group Co. Ltd. ｜ 2025 Sustainability Report About the
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Strategy
Based on our current business operations and strategic planning we have identified short-term medium-term and long-term risks and opportunities in the areas of product quality and safety to assess their potential impact on our
business and financial performance. Building on this assessment we are actively addressing and capitalizing on these risks and opportunities through continuous improvements to our quality management system product testing
recall mechanisms and the cultivation of a quality culture.Key Risk/Opportunity Definition Impact
Quality Control Risk Gaps between manufacturing processes R&D standards or personnel capabilities and product quality Short-term: increased after-sales and recall costs; Medium-term: impacts on brand reputation; Long-term: requirements may lead to the generation and delivery of non-conforming products erosion of market competitiveness
Rapid development of new materials and products introduces uncertainties regarding quality and safety.Additionally failure to reach effective consensus with key suppliers on upgraded quality standards or inability Short- to medium-term: cost pressure to adapt to new regulations and enhance supply chain compliance. Regulatory Risk to communicate end-product performance requirements and customer requirements accurately may increase Long-term: continuous investment required to address regulatory changes
supply chain quality volatility and compliance risks
If the pace of product performance iteration fails to timely respond to market demands and vehicle model Short-term: potential missed market opportunities;
Market Risk changes—particularly for commercial truck tires and off-the-road tires—it may result in diminished product Medium-term: challenges to customer satisfaction and brand recognition;
competitiveness reduced customer satisfaction and loss of market share Long-term: adverse effects on consolidating market share and business growth
Short-term: requires investment in R&D resources;
Technical Opportunity The application of new materials and processes provides innovative technical pathways to resolve quality issues in R&D and production serving as a critical driver for enhancing product performance and safety Medium-term: translates into improved product quality;
Long-term: contributes to building a sustainable technological advantage
Short-term: necessitates adaptation to new requirements; Medium-term: supports elevated compliance
Regulatory Opportunity The evolution and clarification of regulatory requirements offer avenues for the Group to achieve more efficient levels and operational efficiency; compliance and quality enhancement through optimized internal governance and active participation
Long-term: may secure market recognition through exemplary practices
Market Opportunity By precisely identifying and responding to genuine customer needs regarding product performance external Short-term: requires strengthened market insights and customer communication; Medium-term: enhances feedback can be converted into specific directions for product planning and improvement product-market fit and customer satisfaction; Long-term: facilitates expansion of market shareAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 54Chairwoman Us Feature Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Quality Management System
To ensure product safety and quality Sailun Group has established and continuously To ensure effective operation and continuous improvement of our quality management system we have established a clear mechanism
operates a group-wide quality management system. In accordance with the PDCA (Plan- linking quality performance to incentives. In accordance with the Performance Management Control Procedure we decomposed key
Do-Check-Act) cycle we have developed processes for this system and formulated quality indicators—such as claim rates and comprehensive defect rates—by product line and manufacturing facility integrating them
procedure documents covering each process. These documents specify operational steps into the performance appraisals of relevant departments and personnel to drive the achievement of quality objectives.role assignments and monitoring points to ensure effective implementation.Building on our operational quality management system we have deepened quality management through multiple initiatives. In
To accommodate business development and enhance quality management capabilities Advanced Product Quality Planning (APQP20) and R&D control we established and implemented a quality gate management mechanism
we optimized the organizational structure of the Quality Management Center during deeply integrating it with the APQP process. This creates dual-layered control during the R&D phase to enhance project delivery reliability
the reporting period. The center now includes the Planning and Operational Quality while reducing risks associated with Failure Mode and Effects Analysis (FMEA21) and project costs.Management Department Market and Product Quality Management Department
Manufacturing Quality Management Department and Delivery and Service Quality During the reporting period we fully executed Quality Gate controls across new product development for three product lines: passenger
Management Department. This refined functional division strengthens end-to-end quality car radial tires commercial vehicle tires and off-the-road tires. We identified a total of 352 issues all of which have been rectified.management capabilities spanning planning production and delivery services. Meanwhile we developed 36 standardized documents and policies effectively strengthening process control over R&D quality.Furthermore we have established a clear product quality safety responsibility system by At the production process assurance level we implemented systematic error-proofing strategies for high-risk stages and drafted the Key
creating three hierarchical positions: Quality and Safety Officer Quality and Safety Director Process Error-Proofing Management Policy to further standardize error-proofing controls in the production process.Quality and Safety Supervisor. This structure provides a solid organizational foundation for
all quality safety initiatives.Fully responsible for product quality and safety establishing long-term
Quality mechanisms to support the performance of quality management personnel's Error Prevention Error Detection Error Correction
and Safety duties; seeking professional opinions on major decisions; promptly
Officer addressing defects and hazards and recalling problematic products; regularly
analyzing systemic issues and formulating control measures. Process route control Automated equipment R eal-time rectification
inspection mechanism
M aterial usage error-
Assisting the person in charge of quality and safety in managing quality and proofing
safety; exercising veto power over defective products; implementing regulations
Quality and standards; supervising and guiding safety officers in performing their duties;
and Safety formulating risk prevention and control measures and conducting regular Tooling usage verification
Director self-inspections; assessing conditions and exercising veto power; organizing
emergency drills and accident response; conducting training and education;
and cooperating with regulatory inspections and defect recalls. Error-Proofing Strategies for High-Risk Processes
Assisting the person in charge in managing quality and safety; exercising
the right to recommend a veto on defective products; urging employees to
Quality implement specifications; inspecting raw materials production processes
and Safety and outgoing inspections; controlling non-conforming products and 20 A PQP (Advanced Product Quality Planning): A systematic quality management method to ensure quality standards are met during product
Supervisor urging rectification; managing safety archives; cooperating with regulatory development and manufacturing processes.inspections and recalls; and tracking audit issue ledgers and improvement 21
outcomes. FMEA (Failure Mode and Effects Analysis): A systematic quality management tool that identifies analyzes and prevents potential failure modes in
products and processes as well as their possible impacts thereby supporting the implementation of risk mitigation measures.Product Quality and Safety Responsibility SystemAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 55Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Concurrently we innovatively developed the Total Quality Management Intelligent Control System (TQMIS) significantly enhancing In the quality supervision phase we developed the Quality Safety Audit Management
intelligent control and closed-loop improvement capabilities. Regulations and conducted daily safety inspections of the manufacturing process in
accordance with national regulatory requirements. We implemented a mechanism for
daily checks weekly reporting and monthly summaries on abnormal items to identify
Establish the "Total Quality Management Intelligent System (TQMIS)" to Drive the Digital and mitigate risks proactively.Transformation of Quality Management case
As of the end of the reporting period all nine operating factories of Sailun Group have
obtained ISO 9001 Quality Management System certification achieving 100% coverage
of international quality standards. Among them eight factories have secured IATF
To respond to the trend of digital transformation in quality management Sailun Group established the "Total Quality 16949 Automotive Industry Quality Management System certification ensuring 100%
Management Intelligent Control System (TQMIS)" to promote intelligent upgrades in quality management. Built upon a low-code coverage for applicable factories22.platform and microservices architecture the project incorporates advanced algorithms to achieve a strategic shift from "post-
event correction" to "pre-event prevention." By leveraging the three-tier collaborative mechanism of "Group-Center-Factory" We actively responded to updates in external regulations and completed multiple
we identified and optimized critical pain points challenges and risk areas within the full value chain quality management certifications during the reporting period. Indonesia factory achieved SNI new
processes. Through digitalization tools we promoted data-driven intelligent decision-making effectively enhancing the regulation certification at the fastest speed in the industry becoming the first tire
timeliness of response to and handling of quality anomalies. This initiative has established a practical benchmark for the digital enterprise globally to obtain this certification. In the high-end market the winter tire
transformation of the manufacturing industry. ICE BLAZER Alpine 2 received German TüV MARK certification. In accordance with
sales market requirements our products have respectively passed more than 20 global
market access certifications including China CCC certification US DOT certification
European ECE certification South Korea KC certification and EU VECTO certification.
22 The Weifang Factory produces OTR tires which are not included in the IATF 16949 product scope and therefore do not require IATF 16949 certification.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Chairwoman Us Feature
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Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Product Testing Quality Culture
Sailun Group strictly adheres to the Product Audit Control Procedure. In the mass production phase we implement monthly and quarterly sampling To enhance the quality literacy of all employees we have established
tests and audit verifications to continuously monitor and ensure product quality. During the reporting period we revised the CTL23 Routine Inspection a three-tier training system comprising Group-level Center-level
Management Regulations optimized measurement standards and alarm indicators for passenger car and commercial vehicle tire product lines and and Department-level tiers. Annually we conduct specialized annual
promoted continuous improvement in process control through analysis of finished product results. training and thematic cultural activities covering various positions
for all staff. During the reporting period we remained steadfast in our
We have established a comprehensive laboratory system. Laboratories of all factories maintaining continuous operations are CNAS-accredited24 mission to" making great tires". Taking the enhancement of quality
possessing full-process autonomous testing capabilities from raw materials to finished products. In 2025 we continued to strengthen our testing capabilities across all employees as our core focus we conducted a
infrastructure. On the hardware front we added new laboratories in Mexico Indonesia and Shenyang Xin He Ping introducing 51 sets of large-scale cumulative total of 1644 quality training sessions at the departmental
research and validation equipment. Regarding soft power the Experimental Center conducted 44 research projects added or revised 71 testing level or above with a total training duration of 164400 hours.methods and delivered over 30 proprietary technical outcomes. Additionally the commissioning of the East China Intelligent Connected Vehicle
Proving Ground further enhanced our on-vehicle validation capabilities under various operating conditions. For details please refer to the featured
topic " Phase I of the East China Intelligent Connected Vehicle Proving Ground Enters Operation Establishing a World-Class Comprehensive Testing O rganized by the Quality Management Center
Facility" preceding Quality and Safety. targeting senior and middle management as Group-Level well as newly appointed cadres
During the reporting period testing activities were comprehensively carried out. We completed over 900000 material and formula tests and more than 9200 Training C overs quality strategy quality awareness and
product performance and regulatory tests throughout the year. Our available certification testing standards cover over 100 countries and regions globally. quality management process training
Product Recall
We formulated and implemented the Product Recall Management Regulations clarifying management responsibilities and recall procedures for
relevant personnel. We also concurrently executed the Non-Conforming Product Control Procedure to prevent the unintended use of non-conforming
products and standardize the recall management of defective tires. O rganized by the Quality Management Center
Center-Level targeting middle and lower-level management
During the reporting period we piloted an online management system for non-conforming products at our Qingdao factory enhancing the efficiency Training Includes training on quality standards and quality
and accuracy of their control. All facilities concurrently revised the Non-Conforming Product Management Policy to refine the containment process for tools
such products. Simultaneously we continued to strengthen emergency response capabilities by organizing a full-process recall drill for the commercial
vehicle product line at the Qingdao factory.Qingdao Factory Recall Drill case
O rganized by respective departments and
Department sections
Team and
In July 2025 Sailun Group's Qingdao Factory conducted a recall drill for the SAILUN brand 7.00R16LT-SAR31 (DOT: 2125-2225) product Position-Level F ocuses on standard processes on-site
Training management quality incident handling and within the commercial vehicle product line. The drill executed the entire process including team formation plan formulation public standard operating procedures
announcement issuance and recall compensation. This exercise translated the requirements of the Product Recall Management Regulations
into standardized operations achieving standardized response mechanisms coordinated collaboration mechanisms and normalized
information dissemination thereby improving the Group's efficiency in handling defective products. 23 T he arrangement patterns of the tread sidewall and core materials in the tire
section.
24 C hina National Accreditation Service for Conformity Assessment.About the Message Sailun Group Co. Ltd. ｜ 2025 Sustainability Report from Our About Special
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During the reporting period we delivered training to employees from multiple departments including Quality Management R&D Centers and Factory Quality Technology Departments focusing on original equipment
manufacturer (OEM) supporting audits control plans and product regulations. This initiative translates system requirements into professional competencies. Simultaneously all factories actively promoted quality
culture construction activities involving full staff participation to foster a positive atmosphere.Enhancement of Quality Awareness Among Shenyang Factory's Multi-dimensional Quality Culture Construction at
Employees at the Qingdao Factory case Empowerment for Quality Month case Weifang Factory case
The Qingdao Factory developed "One Point One Lesson" The Shenyang Factory launched its Quality Month in The Weifang Factory actively innovates its quality culture
training materials based on internal and external quality September 2025 organizing eight initiatives including initiatives by organizing the selection of "Individuals and Teams
anomaly cases focusing on standard implementation process site visits Voice of Customer sessions and quality with Outstanding Quality Performance" reporting quality
and quality requirements. The factory organized a total risk reporting. These activities resulted in the collection of risks and hosting a series of "Quality Day" events to stimulate
of 283 training sessions across all levels during post-shift 942 employee-submitted quality risks and 1312 standard frontline employee engagement. During the reporting period
meetings and weekly meetings. Additionally over 10000 improvement suggestions while generating 41 on-site a total of 168 individuals and 2 teams were recognized for their
reinforcement training sessions using the "Pointing and improvement plans. This initiative has strengthened quality excellence. Additionally 177 improvement suggestions from
Calling" method were conducted along with 26 quality awareness across all staff and enhanced the capability to employees were adopted and 34 department-level "Quality
knowledge quiz competitions. Through these high-frequency resolve issues at the operational level. Day" events were organized effectively enhancing employees'
and interactive formats the factory continues to enhance quality awareness and sense of participation.employees' quality awareness.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Chairwoman Us Feature
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Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Risk and Opportunity Management
Our quality practices and innovation capabilities have received widespread Sailun Group continues to refine its product quality and safety risk management system. We systematically manage product quality risks by regularly
external recognition. During the reporting period we were invited to identifying and updating the list of quality and safety risks and opportunities based on external trends in the market technology and regulations.participate in the "Manufacturing Enterprise Quality Management We assess their probability of occurrence and potential impact to determine management priorities. The management processes related to product
Capability Assessment" organized by the Ministry of Industry and quality risks have been integrated into the Group's overall risk control framework; please refer to "Corporate Governance" of this report for details.Information Technology of the People's Republic of China where we were
awarded the high-level "Assurance Level" certification. This marks that In terms of risk response we apply the Failure Mode and Effects Analysis (FMEA) method systematically for preventive management. To enhance the
our quality management capabilities have reached an advanced level foresight and precision of risk identification and assessment during the reporting period we optimized the logic for transferring quality risks from
domestically. the front-end planning stage (QFD) to the design stage (DFMEA
25) and production stage (PFMEA26). We updated the Provisions on DFMEA Management
and Provisions on PFMEA Management incorporating the latest methods (the seven-step approach) and evaluation criteria (AP values) from the fifth
Furthermore our project titled "Intelligent Control Platform for edition FMEA manual into the existing risk assessment process thereby improving the systematic nature of quality risk assessment.Comprehensive Quality Management" won the Second Prize at the
Qingdao Quality Innovation Competition demonstrating the Group's Furthermore to meet the quality requirements for entry into international high-end customer systems representatives from the Group Quality
technical accumulation and practical achievements in the digital Center have completed product safety and compliance training and obtained the Product Safety and Compliance Representative (PSCR) certification.transformation of quality management. Concurrently we continue to conduct functional structural and failure analyses on tire products to gain a deeper understanding of product
performance optimize design solutions and identify and prevent potential risks at an early stage. Through the implementation of standardized
processes and continuous improvement mechanisms we have achieved full lifecycle monitoring and recording of product quality risks.Functional Analysis Structural Analysis Failure Analysis
Tools such as parameter diagrams27 are used By disassembling tire components and using A three-level failure chain is constructed to
to identify the tire's operating environment tools such as block diagrams28 structure trees match failure effects modes and causes. We
load conditions and interactions with and QFD (Quality Function Deployment) conduct in-depth analysis of failure modes
vehicle systems. This enables us to pinpoint we have established clear relationships and design factors and strictly control key
potential abnormal sources of variation in the between structure and function ensuring parameters through standardized design
production process providing a basis for design optimal component synergy and functional documents to prevent failures at the source
optimization performance
Awarded at the Qingdao Quality Innovation Competition
Methods for Identifying Tire Product Risks
25 DFMEA stands for Design Failure Mode and Effects Analysis.
26 PFMEA stands for Process Failure Mode and Effects Analysis.
27 A parameter diagram or P-diagram is a structured chart used to describe inputs outputs and influencing factors of a system or component in a specific functional context. It focuses on key variables in the functional realization process helping identify and
control factors that influence functional performance.
28 A block diagram or boundary diagram is a system analysis tool used to define the scope of the analyzed object and illustrate its interfaces and interactions with external systems the environment and users. By providing a visual representation of system
boundaries it helps identify key elements to be evaluated in structural decomposition and functional analysis.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
To address potential risks in production operations each facility has formulated and implemented emergency management regulations for production Metrics and Targets
specifying response measures for abnormalities and quality issues during the tire manufacturing process. For instance in the event of critical
equipment failure the maintenance department assesses the repair timeline while the production management department adjusts the production
schedule accordingly. Upon equipment restoration the technical department verifies the compliance of products resuming production to ensure that Sailun Group is committed to translating quality commitments into
delivered products meet quality standards. concrete actions providing customers with safe and reliable products while continuously enhancing overall quality levels. The Group has
established forward-looking product quality and safety management
objectives and tracks their annual progress.Our Targets
ITNetwork/System Raw & Auxiliary Material
Interruptions Supply Interruptions By 2030
100%
Utility Disruptions/Common Semi-Finished Product
Natural Disasters Interruptions of stably operating and certified tire factories will
consistently pass international quality system
certification
Progress in 2025
Manpower Shortages Critical Equipment Failures
All stably operating and certified factories of Sailun
Group have obtained ISO 9001 Quality Management
System certification achieving
Gas Supply Disruptions during
Production Mold Shortages 100%
coverage of international quality standard certifications
Finished Product Spot-Check
Failures
Emergency Response Plans for Production Anomalies and Quality IssuesAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 60Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
R&D Innovation Investment Target for Clean Technology Opportunities
Sailun Group adheres to innovation-driven development and upholds the corporate spirit of 'Challenge Ourselves Innovate Continuously'.Grounded in market demand we deepen basic research focus on breakthroughs in core technologies and intelligent upgrades and build a globally 2030
leading autonomous technical system for tire products. We continue to drive innovation across three key product categories: Passenger Car Radial Achieve an annual growth rate of investment not less than
Tires Commercial Vehicle Tires and Off-The-Road Tires and establish a quality benchmark for the Group's products consolidating our leadership
and competitiveness in the global rubber tire industry. 5%
Our Goals
To support the achievement of the aforementioned core material
Sailun Group integrates the sustainable philosophy of respecting nature and protecting ecosystems throughout the entire process of product research and objectives we have established the following key product and
development and innovation. technology development goals:
We extensively utilize renewable materials such as natural rubber and rayon and collaborate with suppliers to expand the application of sustainable materials Key Product Performance Targets
in fields including synthetic rubber fillers additives and carcass materials. In the synthetic rubber sector bio-based and recycled butadiene sourced from
non-petroleum origins have been adopted to replace petroleum-based feedstocks for the production of polybutadiene rubber and styrene-butadiene rubber.Additionally halobutyl rubber produced using bio-based isobutene as a raw material has been tested and verified to meet conditions for mass application. Enhance Product Durability
Regarding fillers through collaborative development with upstream carbon black manufacturers carbon black prepared using bio-based oils or pyrolysis oil
derived from waste tires has demonstrated performance meeting usage requirements; it has passed verification and is ready for mass use. Launch product series with wear mileage exceeding current products by more
than 10%; develop mass-produced retreadable truck tire series capable of being
In terms of additives multiple green substitution technologies have been reserved: high specific surface area recycled zinc oxide replaces traditional indirect- retreaded 2-3 times.method zinc oxide enhancing material sustainability while effectively reducing zinc consumption in compliance with future trends in environmental
regulations. Evaluation and technical reserves for lignin-based materials have been completed. Hardwood lignin after treatment via bio-based processes can Expand Sustainable Materials
serve as a reinforcing filler. Softwood lignin leveraging its polyphenol structure undergoes modification treatments such as demethylation and hydroxylation
to substitute petroleum-based anti-tear resins and reinforcing resins achieving comparable performance levels. Advance the validation and reserve of sustainable synthetic rubber sustainable
additives (such as anti-aging agents and adhesives) based on existing sustainable
Building upon the achievement of 75% and 80% sustainable material usage ratios for passenger car tires and commercial vehicle tires respectively we have materials.established forward-looking product innovation and R&D goals to drive technological upgrades and value enhancement.Apply Eco-Friendly Materials
The Target for the Proportion of Sustainable Materials
Adopt new anti-aging agents to replace 6PPD29 for tire product evaluation and
verification; promote the application of eco-friendly impregnated polyester cord.
20302050
All Product Lines All Product Lines
The Target for the Proportion of Sustainable Materials Used The Target for the Proportion of Sustainable Materials Used Achieve Product Lightweighting
40% 100% Conduct research on the application of higher-strength and new skeleton
materials to reduce material usage while ensuring performance.
29 6PPD refers to N-(13-dimethylbutyl)-N'-phenyl-p-phenylenediamine.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
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Our Governance Deepening the Construction of R&D Talent Echelons to Inject Sustained
Momentum into Technological Innovation
To rapidly respond to market demand fluctuations and continuously enhance product competitiveness through case
innovation the Group has established a R&D governance architecture centered on "Technology Integration."
By fostering organizational synergy and process integration we have built an agile response mechanism that
enables bidirectional linkage between market needs and technology achieving synchronized resonance Focusing on core R&D capability building we conducted specialized training for different levels of
between market demands and technological iterations. personnel within the R&D team.Project Manager Qualification Certification:
The Technology Integration Working Group has bridged all stages from market R&D to production. We have
constructed a closed-loop system for the entire product lifecycle encompassing market requirement input Systematically conducted training for project manager qualification certification covering areas
R&D implementation mass production delivery data feedback and continuous optimization. This approach such as project management and Advanced Product Quality Planning (APQP) thereby enhancing
ensures efficient linkage and iterative refinement between market demands and the R&D-production system operational efficiency and value creation capabilities.establishing a positive cycle where "market drives technology technology supports products and products Expert Lecture Series:
feed back into the market." Invited industry experts to deliver multiple thematic training sessions focused on rubber raw
materials and formula design establishing a professional growth platform for technical talent.Our Initiatives Patent Empowerment Training:
Fully implemented specialized patent empowerment training covering R&D innovation protection
Sailun Group is committed to building an innovation ecosystem characterized by "technological leadership patent technology retrieval and achievement transformation. This initiative activates the internal
digital drive and a talent-driven foundation". We continuously refine our innovation management mechanisms driving force for innovative development within the Group while building a robust intellectual
and strengthen professional team development to lay the groundwork for technological innovation. Through property safeguard system.deep application of intelligent platforms we have significantly enhanced R&D efficiency and achieved
breakthrough progress in key technical areas. Simultaneously we have established an intellectual property New Employee Training:
protection system to provide robust support for the transformation of innovation outcomes thereby To facilitate the rapid integration of new R&D members into the team we continue to conduct "Yilu
consolidating our leading position in technology within the industry. Xiangqian" new employee training programs. These programs cover project management patent
knowledge and company policies providing a continuous reserve of talent for the Group's long-
R&D Capability Building term development.Sailun Group continuously enhances its R&D innovation capabilities by "cultivating a composite technical
team and establishing market-oriented incentive mechanisms. The Group has formulated policies such as
the Provisions on R&D Project Management Regulations to standardize the full-process management of R&D
projects. Additionally the Group updated the Provisions on R&D Quality Management incorporating stricter
control requirements at critical stages of product development and manufacturing changes refining review
processes to systematically reduce quality fluctuations and continuously improving R&D quality and efficiency.Furthermore the Group formulated and implemented the Group Patent Reward Management Regulations
directly linking innovation outcomes with incentives to effectively stimulate creativity across all employees.We continue to recruit high-level R&D talent optimized the mentorship mechanism for new employees
and conducted training programs to accelerate talent growth. Furthermore we actively promoted industry-
academia cooperation advancing the Excellent Engineer Joint Training Program with universities such
as Qingdao University of Science and Technology to explore collaborative education models and provide
sustainable talent reserves for the R&D system. To better support R&D operations we upgraded the office and
residential environments of the R&D Center creating more convenient and comfortable work and living spaces.Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the
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Digital R&D Practices
While strengthening talent development we enhance product performance under extreme conditions through simulation technology optimized Guided by responsible innovation Sailun Group integrates environmental
product structures and innovative material formulations supporting high-end applications and global market expansion. Leveraging PLM30 Gentyre31 risk factors into product development. During the reporting period we
and LIMS32 we have integrated platforms to close the "requirements–design–verification–production" loop enabling precise R&D and agile delivery conducted multiple studies on tire environmental impact.under the APQP framework.During the reporting period we advanced the design-simulation integrated platform which covers the entire chain from concept to production
preparation. Parametric design increased drawing efficiency by over 50% and simulation process automation reduced verification tasks from hours
to 5 minutes significantly boosting R&D efficiency. The platform's built-in AI assistant and database drawing on the Group's historical data assets
support R&D decision-making and transform insights into corporate knowledge improving information flow and decision efficiency and shifting R&D
from experience-driven to data-driven intelligent iteration.Regarding physical emissions we studied the potential
impact of tire wear particles (TWPs) on soil ecology. Beyond
Leverage the Simulation Integrated Platform to Improve R&D Efficiency and Market Responsiveness case traditional focus on carbon black formulations our research
includes silica-based green tires. Through simulated wear
and soil pot experiments we compared effects of TWPs with
different fillers (carbon black vs. silica) and wear levels to
The simulation integrated platform substantially improved evaluate the environmental friendliness of silica technology.R&D efficiency and market responsiveness. It supported the
development of over 20 products during the reporting period
enabling multiple truck tire products to enter the market. In a
tire extension project involving more than 100 specifications
the platform ensured efficient design and timely launches
through contour expansion and automated simulation.To advance research on tire environmental impact we engaged
with ISO standards on tire wear particles testing and assessment
frameworks adapting international standards locally. We led the
drafting of three national standards related to tire and road wear
Simulation Integrated Platform particles (TRWP) laying a technical foundation for Chinese tire
companies to manage product environmental impact and lead high-
quality industry development.
30 Sailun Group's Product Lifecycle Management System.
31 Sailun Group's Tire Design Optimization Platform.
32 Sailun Group's Laboratory Information Management System.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 63Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Leading Through Innovation
Sailun Group continues to drive technological innovation focusing on While addressing the challenges of general regulations our innovation focuses on the sustainable development of key industries. Through systematic
breakthroughs in key technologies intelligent product enhancement and product layout and targeted technological breakthroughs we provide high-performance low-impact tire solutions for specific application scenarios.industrial ecosystem development. Through innovative R&D the Group
addresses global challenges pioneers new markets with smart products Sailun MAXAM Tires Win Prestigious
and fosters open collaboration to pool innovation resources. It effectively Certification Leading Agricultural Tire "New Journey Future Ahead": Sailun Group
transforms innovation outcomes into market competitiveness and industry Innovation with Outstanding Performance 2026 Commercial Vehicle Tire Launch
influence building a leading force in innovation-driven development. case case
Proactively Addressing Global Regulatory
Upgrades with Technological Innovation case At Agritechnica 2025 Sailun Group's MAXAM brand agricultural We successfully held the "New Journey Future Ahead"
tires AgriXtra XL and AgriXtra XL VF were awarded the "DLG commercial vehicle tire launch event introducing six high-end
Certified" quality mark by the German Agricultural Society (DLG) tire series covering all scenarios including long-haul logistics
for their excellent performance. Based on rigorous testing under new energy and heavy-load transportation. The new products
this certification Sailun agricultural tire products demonstrated are based on the Group's independently iterated third-generation
By breaking through global trade barriers with technological outstanding performance in core indicators such as resource commercial vehicle tire technology platform showcasing the
innovation and adhering to green low-carbon development conservation fuel economy and traction fully aligning with Group's breakthroughs in high-end new energy and heavy-
principles the Group has upgraded its high-performance tire the trends of smart and green agriculture. This international load specialization as well as its leading product portfolio in the
products for the European market. The project focuses on the certification highlights the Group's technological expertise and commercial vehicle tire field.synergistic improvement of rolling resistance wear resistance innovation capabilities in the agricultural tire sector laying a solid
and wet grip performance. Through iterative optimization of the foundation for Chinese tire brands to support global agricultural Taking the electric truck-specific tire series as an example the
tread compound system and breakthroughs in key processes the modernization. product addresses the unique operating conditions of new
product has achieved advancements in safety energy efficiency energy commercial vehicles. It leverages three core technologies
and durability. Leveraging cutting-edge technological reserves to effectively solve industry pain points such as shortened tire
the project solidifies the product's core strengths and significantly lifespan and abnormal tread wear. Validated through nationwide
enhances its competitiveness in the international market. road tests the product demonstrates significant improvements
in overall performance safety and wear resistance providing
robust technical support for the development of the new energy
commercial vehicle industry.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the Report from Our
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During the reporting period Sailun Group actively engaged in industry-university-research collaborations with institutions such as Peking University Shandong University Shandong University of Science and Technology Qingdao University
of Science and Technology and Tianjin University of Technology. These partnerships focus on co-developing key industry technologies effectively driving technological innovation and the transformation of achievements.In collaboration with Shandong University of Science and Technology Tianjin University of Technology and other institutions we have co-developed an intelligent tire system capable of monitoring tire pressure temperature and wear status.By maintaining optimal tire pressure the system effectively reduces rolling resistance and tire particle emissions improving vehicle fuel efficiency and range. Additionally the smart tires can provide early warnings for potential safety hazards
reducing accident risks. Based on this technology we have developed the Tire Intelligent Management Platform (TIMP) which has achieved promising results in operation.Sailun Intelligent Tire Full Lifecycle Management Platform (TIMP) case
Against the backdrop of accelerating intelligent transformation in the logistics and transportation industry Sailun Group has launched the
Intelligent Tire Full Lifecycle Management Platform (TIMP) centered on the core values of "safer more efficient and smarter." The platform aims Core Features
to establish a digital data link throughout the entire tire lifecycle providing critical data support and operational decision-making assistance for
vehicle drivers and fleet managers. Abnormal
Tire Management Warning Vehicle Management
By installing TIMP devices on vehicles the platform can collect key data such as tire temperature pressure mileage and wear in real time Management
synchronize it to cloud servers. This enables remote monitoring and intelligent analysis of tire conditions forming an integrated service chain of
"perception–assessment–early warning–decision-making" to address challenges in commercial vehicle operations such as difficult asset control Fuel Consumption Intelligent Voice Statistical
unpredictable safety risks and suboptimal cost management. Data Management Prompt Analysis Management
The platform's core strengths stem from Sailun Group's long-term
expertise in tire manufacturing in-depth experience across diverse Application Case – A large petrochemical logistics enterprise
application scenarios and comprehensive technical capabilities across Faced with challenges such as difficulty in monitoring tire
the entire value chain. Leveraging over two decades of tire manufacturing conditions and real-time control of trailers in hazardous chemical
experience and implementation outcomes in fields such as logistics transportation the Petrochemical Logistics Enterprise implemented
ports and mining the platform provides highly tailored solutions Sailun's TIMP commercial vehicle integrated solution and intelligent
to address complex needs. Simultaneously by deeply integrating drop-and-hook solution which enables real-time monitoring of
key technologies such as artificial intelligence big data and cloud tire temperature and pressure intelligent wear warnings and
computing the platform has established a complete technical system automatic matching of tractors and trailers. To date the system has
and service capability spanning from smart hardware development to been deployed on over 100 vehicles monitoring more than 3000
platform-based services. tires and issuing over 23000 warnings significantly enhancing
transportation safety management and fleet operational efficiency.We not only apply innovative achievements to our own products but are also committed to promoting industry consensus and standardization. We actively engage in the development of industry standards serving as the lead unit
in formulating 5 national standards and participating in the formulation or revision of more than 10 national standards. In the field of tire retreading we spearheaded the development of the national standard for Retreaded Tires
for Construction Machinery and integrated "EcoPoint3" materials into retreaded products. This effort has established a closed-loop system of "technology–standards–industry–ecosystem" driving the tire industry toward greater
sustainability and higher value.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Chairwoman Us Feature
Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 65
Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Protecting Intellectual Property Awards and Honors
Sailun Group continues to strengthen the construction of its intellectual property protection and management system. Through portfolio patent
applications centered on multiple key technologies and core product lines the Group has enhanced its responsiveness to market demands and
fortified its core competitiveness.At the management level we continuously improve intellectual property protection by refining systems enhancing process management building
supporting platforms and mitigating supply chain risks. We have revised management regulations such as the Patent Management Regulations the
Intellectual Property Compliance Management Control Procedures and the Patent Risk Early Warning Control Procedures standardizing the entire
lifecycle management of patents from application and maintenance to utilization. These revisions clarify compliance obligations and control measures
across all operational stages.Our Performance
During the reporting period we achieved significant results in technological innovation and smart manufacturing earning multiple national and
provincial honors. These recognitions demonstrate our strength in high-end tire R&D manufacturing and digital transformation. Additionally our National Manufacturing Single Champion - Radial Tire for Construction Machinery
intellectual property compliance management system certification comprehensively covers the entire R&D production and sales processes of Ministry of Industry and Information Technology of
passenger car radial tires commercial vehicle tires and off-the-road tires achieving 100% coverage. the People's Republic of China
Digital Transformation
Target Category Target Progress in 2025 Excellent-Level Smart Factory Promotion Center for
Manufacturing
Increase the proportion of sustainable The proportion of sustainable materials in tire
Sustainable materials in tire products to products reached Ministry of Industry and Ministry of Industry and
Material Information Technology of the Information Technology of the
Proportion by 2030 by 2050 People's Republic of China People's Republic of China
40%100%31.04%
Total Number of Accepted Patent Applications in 2025: 528 among which
With 2024 as the baseline the Group's The Group's investment in clean technology
Investment in annual growth rate in investment in clean achieved an annual growth rate exceeding
Invention Utility Model Design
technology33 will not be lower than Patents Patents PatentsClean Technology
Opportunities
5 5 134 230 164% by 2030 %
33 T he R&D investment in clean technology disclosed in this report is centered on the Group's core tire business covering areas such as the development of advanced tire materials and formulations and the design of specifications for new energy vehicle tires.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 66Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Commitment to Service Excellence
Sailun Group consistently adopts a customer-centric approach with a strategic focus on addressing user needs as a core pillar of the Group's
development. The Group continuously improves its end-to-end customer management and service mechanisms supported by a systematic
governance structure and clearly defined responsibilities. Through these efforts it steadily enhances service capabilities and response
efficiency creating a stable and sustainable cooperation experience for customers. At the same time the Group actively upholds the principles
of responsible business conduct. Building on a solid foundation of standardized and systematic operations it strengthens its brand through a
long-term approach and continues to enhance market trust and social recognition.With customer lifecycle management at its core Sailun Group has
Our Goals systematically reviewed the management requirements across the pre-
sales in-sales and after-sales stages and achieved consistency and
We remain committed to a customer-centric approach and will continue alignment in service standards through institutionalized processes thereby
to enhance customer satisfaction through institutionalized processes providing governance support for the efficient operation and stable
and the development of digital platforms. By 2030 Sailun Group aims delivery of customer services.to consistently maintain a customer satisfaction score of 95 points
or above.Pre-sales Services
Our Governance Product Specification Response
Consultation Matching Efficiency
To better respond to customer needs and enhance service experience
Sailun Group has established the Global Tire Service Center as the core
body responsible for coordinating the global deployment and operation
of its tire service business. Centered on the full life cycle of tires and
guided by global market demand and the Group's development In-sales Services
strategy the Center is responsible for the establishment operation and
supporting functions of domestic and overseas market service systems. Logistics and Shipment Satisfaction
It also undertakes integrated projects spanning research production Delivery Tracking Improvement
sales and service ensuring the efficient and coordinated operation of
the global service system.The Group Quality Center's Delivery and Service Quality Management
Department is responsible for formulating market claim standards After-sales Services
and the identification of claims tires developing the complaint
closure management process as well as responding to major
market anomalies claims and complaints analysis and supervisory Claims Handling Complaint Closed-loop After-and Assessment Handling sales Management
improvements. This ensures the effective implementation of the claims
and complaint processes with accountability for quality. Customer Lifecycle Management SystemAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 67Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Initiatives
Technical Support for Mining Operations: Maxam
Team Safeguards Safety Across the Value Chain case
Customer Service Quality
Sailun Group standardizes customer service management through Expanded Communication Channels
internal policies such as the Service Management Control Procedure During the reporting period the Maxam technical service
the Complaint Control Procedure and the Emergency Management team made multiple visits to mining sites to provide tire
Regulations for Major Product Risks covering service request handling The 400 hotline added new service access points including inspections and technical support helping customers
complaint resolution and responses to major product-related market the Didi platform and WeChat channels for out-of-region improve tire lifecycle management. The team conducted
risks. During the reporting period we updated the Complaint Control claims. on-site ride-along investigations under heavy-duty
Procedure in line with organizational and business changes further operating conditions collected data on haul distance
clarifying requirements for cross-functional coordination response O nline customer service expanded to include additional and road conditions and carried out standardized
categorization and processing timelines. These efforts strengthened communication channels such as the Xiaomi Youpin app and inspections of tires in service including tread depth
accountability and timeliness improved complaint-handling efficiency WeCom. and tire pressure to assess remaining tire life. Based on
and closed-loop issue resolution and ensured timely and effective inspection results and site conditions the team developed
responses to customer feedback. tailored maintenance solutions such as standardized tire
pressure management and regular road cleaning. These
At the same time we developed and implemented service guidelines Complaint Handling Mechanism efforts helped extend tire life reduce tire waste and lower
such as the 400 Hotline Customer Service Operating Manual and the customers' operating costs and resource consumption.
400 Hotline Call Handling Guidelines based on actual service needs. The service also strengthened long-term customer After receiving tire-related complaints the customer service
By standardizing service scripts and operating procedures these partnerships and demonstrated the team's professional center works with the business team to verify the situation on
guidelines improved the consistency and professionalism of customer expertise and end-to-end service capabilities.site responds proactively to reasonable customer requests
communication and supported the continuous enhancement of service seeks to reduce the risk of complaint escalation and
management. safeguards customer rights and brand image.Sailun Group systematically restructured its customer service Sailun Group established a monthly dissatisfaction analysis
communication channels and complaint-handling mechanisms to mechanism for each business team to regularly review
optimize and upgrade its customer complaint management model. complaint cases and promote the continuous implementation
It gradually shifted from an approach focused primarily on quality of service improvements.assessment to a full-process service management model covering
request intake verification coordination and feedback thereby
improving response efficiency in resolving customer issues and further
standardizing service management. Initiatives to Improve Customer Service Quality
We continuously optimized our service processes to ensure that customer issues were handled in a timely and accurate manner. Through a series of
targeted customer follow-up and claims services we not only addressed customers' practical concerns but also strengthened brand credibility and
customer satisfaction reflecting our continued efforts to enhance service quality and fulfill social responsibility.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 68Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sailun Group Again Recognized as an "Excellent Supplier"
by Weichai Lovol Smart Agriculture case Systematic Training to Strengthen Customer Service Capabilities case
At the 2026 Global Supplier Conference of Shandong Heavy Industry · Weichai Lovol Smart Agriculture Building a comprehensive training system: Focusing on three core modules—400 hotline
held in Hefei Anhui Sailun Group was named an Excellent Supplier for 2025 in recognition of its online customer service and tire claims review—we organized 19 specialized training sessions
outstanding product quality stable supply capacity and strong technical support. This marks another throughout the year. Through module-based training on service scripts business processes
year that Sailun Group has received this honor reflecting the customer's continued recognition of the and system operations we continued to improve service professionalism and standardization.Group's overall strengths and long-term partnership value. MAXAM remains focused on the agricultural
sector and committed to customer needs. With strong wear resistance and puncture resistance Enhancing professional claims handling capabilities: We organized employees to participate
MAXAM products are widely used in Weichai Lovol's agricultural equipment including tractors and in professional qualification certification training and examinations for tire distribution claims.harvesters. Looking ahead Sailun Group will continue to work with partners to advance the global This initiative systematically strengthened product knowledge and the ability to determine
development of agricultural mechanization and intelligence providing reliable and efficient support claims standards. As of the reporting period end all personnel engaged in tire distribution
for modern agricultural production. claims business have obtained the Tire Distribution Claims Appraiser Certificate progressively
enhancing their capacity to handle complex after-sales issues.Customer Service Upgrade
Sailun Group continued to advance the digital upgrade of customer service. In 2025 leveraging its existing
400 hotline and online customer service system the Group launched new features on the customer complaint
platform and brought channels such as Yaoling Store Manager Yaoling Palm Link Yaoling Business Link and
the DMS system34 under unified management enabling centralized complaint handling and standardized case
processing.At the same time we upgraded our existing B2B platform by adding functions such as intelligent alerts assisted
review and claims file linkage. These enhancements strengthened internal review and risk control reduced
invalid submissions improved processing efficiency eased workload pressure during peak periods and further
enhanced the customer service experience.To further improve employee professionalism and customer service capabilities we carried out a range of
training initiatives during the reporting period. These efforts were designed to strengthen employees' skills in
key business areas and through professional qualification training enhance their ability to handle complex
after-sales issues such as tire claims thereby continuously improving the professionalism and competitiveness
of our customer service.
34 DMS System: Dealer Management System specifically designed to manage a company's dealers and help coordinate sales
and inventory.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 69Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
In addition to strengthen service capabilities in overseas markets Sailun Group extended its customer service upgrade initiatives to overseas sales and Customer Satisfaction
service teams. By launching the iLearning online learning platform the Group provided foreign employees with training on corporate culture and tire-
related expertise helping them integrate more quickly and build a solid business foundation. At the same time based on the characteristics of regional Sailun Group continues to follow the Sailun Group Customer
markets Sailun Group organized specialized training on sales and customer service in its Asia and Europe theaters enhancing overseas teams' product Satisfaction Measurement Management Regulations under which
knowledge service responsiveness and coordination capabilities and enabling more consistent and professional service support for customers customer satisfaction is treated as a key indicator of service quality and
worldwide. incorporated into the daily management and performance focus.We further strengthened routine and real-time customer feedback
mechanisms based on different service scenarios. Real-time satisfaction
Conduct regional sales skills training to enhance market service capabilities case evaluation mechanisms have been established and steadily operated
through both the 400 hotline and the online customer service team.Within the "golden five minutes" after each service interaction or
call customers are invited to submit feedback through a three-level
Asia: Sailun Group held a sales skills training camp in Ho Chi Minh City Vietnam focusing on product knowledge service support and satisfaction rating system with the results synchronized in real time
team collaboration. Regional heads and key sales staff from Southeast Asia participated further strengthening regional coordination and to the customer service system for immediate collection and dynamic
market service support capabilities. monitoring. During the reporting period the customer satisfaction
score for the 400 hotline was 97.6 while the online customer service
Europe: Specialized training sessions on customer service and sales skills were delivered in phases to frontline teams across Europe. satisfaction score was 91.4. This helped shift customer feedback from
Focusing on customer needs and the coordination of products and services the training was led by experienced regional staff based on post-service review to real-time insight continuously improving service
local practices continuously improving professional service capabilities and response efficiency. methods and response quality and further enhancing overall customer
satisfaction and service experience.Strengthening and Empowering the Global Distributor
Network
Sailun Group continued to improve two-way communication
with distributors to enhance service coordination and market
responsiveness promoting a shift toward full-process and routine
distributor engagement. We maintained close communication with
distributors and fleets across the pre-sales in-sales and after-sales
stages. Through on-site visits by market service engineers usage
diagnostics and technical exchanges we provided targeted training
and guidance based on actual operating conditions while promptly
communicating product performance and improvement suggestions.At the same time we kept multiple feedback channels open including
telephone WeChat the 400 hotline and online customer service.Customer service and technical teams worked together to ensure rapid
response and closed-loop resolution continuously improving the
distributor experience and end-user service satisfaction.Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the
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Our Performance
Building a Distributor Training System to Improve Service Consistency case Sailun Group regards customer satisfaction as a key performance indicator
for customer service quality and operational effectiveness and continues to
improve service standards through quantitative management. Supported
by a routine customer satisfaction evaluation mechanism we continuously
Sailun Tire Americas in collaboration with U.S. Distributors continued to monitor and analyze the customer service process. Our professional and
carry out distributor training programs to strengthen the professionalism and reliable service capabilities have also been recognized by key customers
service capabilities of distributor teams in areas such as product knowledge and partners. In 2025 Sailun Group achieved broad breakthroughs in the
sales practices and brand values. The training covered product applications passenger vehicle OE market securing supply for multiple vehicle models
consultative selling after-sales and claims procedures and brand from major domestic automakers including FAW-Volkswagen BYD Chery
positioning with tailored content designed for different channels and team Geely Changan NIO BAIC and Nanjing Iveco. During the reporting period
needs. During the reporting period the programs were delivered through the Group was honored with several prestigious awards including the 2025
a combination of on-site training regional workshops online courses and Quality Excellence Award from Shaanxi Automobile Commercial Vehicle.ride-along support reaching more than 95% of distributor sales teams over This recognition not only highlights Sailun's strong support capabilities
the year. These efforts continued to enhance management standards and but also serves as an important testament to the enhanced strategic
service quality across the distribution network providing customers with a cooperation with numerous customers. With a steadfast commitment
more consistent and standardized service experience. to our original intent we will continue to strengthen the quality system
optimize tire product performance and provide the market with safer
more efficient and more competitive tire solutions through higher
standards better quality and faster response.Ecosystem Co-building: Distributor Tire Testing Experience Event case
Target Category Target
Customer Achieve a continuous
In September 2025 Sailun Group together with a local distributor in Poland Service customer satisfaction score
held a customer engagement and tire testing event at the Kielce circuit. of by 2030
The event brought together 50 key B2B customers from across the value 95 or above
chain and combined product and technical exchanges customized track
test drives and professional driver training. It showcased the technological
innovation of the Sailun RoadX and MAXAM brands strengthened customer
engagement and recognition enhanced the Group's brand influence in the Progress in 2025
Polish market and deepened collaboration across the industry ecosystem.Through this responsible brand initiative Sailun Group also supported the During the reporting period customer satisfaction in the Overseas
high-quality and sustainable development of the regional tire industry. Region reached 97.80 points while customer satisfaction in the
China Region reached 97.32 points achieving the annual targetAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 71Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Responsible Marketing Our Initiatives
Sailun Group has always adhered to the principle of Sailun Group continued to strengthen the standardized management of marketing account differences in culture legal requirements and market conditions across
responsible marketing committed to following principles and brand communication activities embedding compliance requirements countries and regions the Group adopted differentiated management of brand
of integrity transparency and compliance in product throughout external communication and brand management. During the reporting communication content and communication methods to ensure that marketing
promotion and brand development. By establishing a sound period the Group further improved its brand and public opinion governance activities comply with local social cultural and regulatory requirements.marketing system we drive the healthy growth of our brand mechanism on the basis of its existing compliance framework. By revising the Brand
while actively fulfilling social responsibilities in market Public Opinion Management Manual it enhanced its capabilities in risk identification In practice Sailun Group strengthened the language and cultural adaptability of
competition. Through continuous optimization of marketing response and coordinated management strengthened the proactive prevention and its communication content through multi-platform reputation management and
strategies and service models Sailun Group not only focuses control of brand communication risks and ensured the standardization consistency localized communication strategies along with a sound contract compliance
on meeting customer needs but also emphasizes sustainable and robustness of external communications. management system and a collaborative intellectual property protection
social and environmental development striving to establish mechanism. During the reporting period the Group's Legal and Risk Control
a trustworthy brand image. In responsible marketing practice Sailun Group regards the regulation of Department conducted multiple contract compliance training sessions for key
market communication activities and the prevention of communication business departments such as the sales China region. These sessions were
risks as key management priorities and continues to improve the prudence delivered in a combination of online and offline formats using real business cases
and compliance of brand communication. During the reporting period to systematically explain risk points throughout the contract lifecycle helping
Our Goals in response to the communication risk management needs arising from frontline employees improve their risk identification and prevention capabilities
global operations the Group launched the development of a global brand and embedding compliance awareness into every stage of the business process.We uphold integrity and compliance in responsible marketing monitoring system to safeguard brand reputation enhance global brand Meanwhile the Group also enhanced intellectual property training for frontline
and remain committed to creating customer value. We continue trust and reduce public opinion risks across international markets. employees clarifying the usage regulations for trademarks and copyrights to
to improve our policies and management mechanisms ensure that employees correctly use brand logos when creating promotional
strengthen brand building and communication transparency In building this system Sailun Group adhered to the principles of proactive materials and interacting with customers respecting others' intellectual property.and safeguard consumer rights and market trust. prevention agile response and localized adaptation. The Group established This conveyed the brand philosophy of "making a good tire" to the market and
a routine monitoring and early warning mechanism to strengthen its ability to actively gained broad recognition from global customers and partners.identify and respond to potential public opinion risks. At the same time taking into
Our Governance
Sailun Group continues to improve its compliance Sailun Qingdao Airport Experience Center: Innovative Interaction Showcasing Sustainable Value case
governance structure for responsible marketing with clear
responsibilities assigned to relevant departments and
compliance requirements embedded throughout brand Sailun Group established a brand experience center at Qingdao Jiaodong
communication and marketing activities. As the frontline International Airport as an important platform for engaging global travelers and
of compliance management business departments are showcasing innovation. Through an immersive F4 racing tire-change display and
responsible for overseeing the compliance of relevant customized interactive experiences the center presented a full-scenario product
activities. The Brand and Culture Management Department portfolio represented by EcoPoint3 tires while clearly communicating their safety
together with the Legal and Risk Control Department energy-saving performance and sustainability value to the public. This initiative
and other departments reviews and provides guidance reflects the Group's innovative approach to customer engagement and promotion of
on external communications forming a multi-level and sustainable mobility solutions while effectively conveying its technological strength
coordinated compliance management mechanism and and responsible brand image.continuously enhancing the standardization and robustness
of brand communication management.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 72Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Global Launch of Sailun EcoPoint3 Color Sidewall Tires: Driving Sustainable Industry Development Through Technological Aesthetics case
During the reporting period Sailun Group stayed true to its
mission of "making great tires" and launched the world's first
color sidewall tire integrating Eastern aesthetics with advanced
technology—the EcoPoint3 Fashion Series. Centered on user
needs the product marks a new step for the tire industry toward
the integration of high visual appeal and high performance.Focusing on customers' dual expectations for both aesthetics and
performance Sailun drew inspiration from traditional Chinese
color aesthetics and partnered with Vogue Tire a global premium
tire brand. After more than a decade of technical development the
Group overcame key industry challenges in formula compatibility
and color durability under heat secured eight core patents and
developed seven premium customized color options. The product
builds on the low-carbon strengths of EcoPoint3 tires in energy
efficiency wear resistance and safety while also incorporating
self-sealing safety technology patented noise reduction
technology and RFID-enabled traceability technology achieving
the integration of aesthetics safety low-carbon performance and
intelligent features.Following its global launch in 2025 the product received multiple
industry awards including Top 10 Tire of the Year and was also
recognized by CCTV as an Annual Innovation Case. The launch
not only marked an important milestone in Sailun's premium
brand development but also reflected the Group's efforts to drive
greener industry upgrading through innovative products and
create a better mobility experience for users.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 73Chairwoman Us Feature Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Performance
Technology-led Brand Advancement Showcasing the Innovation Value of Chinese Tires case
Sailun Group continued to strengthen employees' understanding
and implementation of compliance requirements through ongoing
training and communication on compliant marketing promoting the
In 2025 Sailun Group communicated its approach to technological integration of compliance principles into brand communication and
innovation and brand development through Moganshan Brand marketing activities. During the reporting period the Group found no
Dialogue a program produced by Xinhua Net. Chairman Liu major violations related to marketing compliance and its management
Yanhua introduced the R&D background of the EcoPoint3 tire measures played a positive role in standardizing marketing practices and
material and its technical value in enhancing overall product preventing communication risks.performance. He also shared how Sailun Group is advancing its Building on its systematic internal compliance efforts Sailun Group's
brand toward the high-end and international markets through responsible marketing practices and brand image also received recognition
collaborative research. In addition the Group outlined its global from an authoritative national institution. During the reporting period
approach to promoting green low-carbon and sustainable the Group's SAILUN and MAXAM brands were named AAA National Well-
development across the product lifecycle. known Trademark Brands by the China Trademark Association making
Sailun Group the first company in the industry to receive this recognition.The certification evaluates performance across five dimensions—legal
management market financial and social responsibility—and provides
authoritative recognition of the Group's long-standing commitment to
compliant operations and honest communication further strengthening its
market credibility and brand reputation.Track Experience Events: Standardized Product Experiential Marketing case
In 2025 Sailun Group supported a series of premium track
experience events organized by the Xiaomi Ultra Club in six
locations across China including Beijing Zhejiang Chengdu
and Zhuhai. During the events the Group provided high-
performance tires for selected vehicle models allowing users
to experience product performance in a professional track
environment. Based on real-world application scenarios
these activities communicated product features to target users
through standardized and transparent experiential interactions
reflecting the Group's prudent and responsible approach to
marketing.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 74Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Supply Chain Management Our Governance
Sailun Group continues to strengthen its supply chain management system by integrating sustainable development and responsible sourcing Sailun Group incorporates sustainable supply chain governance into
principles throughout the supply chain. The Group works closely with partners to build a stable resilient and sustainable supply chain system. its overall governance framework and strengthens supply chain ESG
management through strategic guidance institutional development
and cross-functional collaboration. The Group integrates responsible
procurement risk control and supplier management into daily operations
and has established mechanisms for risk assessment supplier admission
Our Goals periodic audits and continuous improvement. Relevant sustainable development indicators are also included in supplier performance
evaluation. At the same time Sailun Group continues to strengthen internal
Our goal is to continuously improve supplier management and build a robust and sustainable supply chain. We work closely with suppliers and coordination and supplier communication to enhance ESG performance
partners to fulfill social responsibilities and promote the sustainable development of the supply chain ecosystem. supply chain resilience and long-term sustainability.To support a stable resilient and sustainable supply chain the Group continues to improve supplier management and responsible sourcing
mechanisms and gradually integrates sustainability principles into supply chain management and procurement decisions. While ensuring supply
chain security and stable operations the Group is committed to working with suppliers and partners to advance compliant operations risk
management and capability building and to promote the long-term sustainable development of the supply chain ecosystem.To support these goals we have set phased and long-term targets for supplier ESG management and sustainable sourcing:
Sustainable Procurement
By 2030 By 2030
annual participation in sustainable procurement training among ESG compliance due diligence will cover
all employees of the Procurement Center will remain at
100100%%
of major suppliersfurther strengthening
continuously strengthening internal understanding and implementation the foundation of ESG management
of responsible sourcing and ESG requirements across the supply chainAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 75Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Initiatives
Full Lifecycle Supplier Management
Sailun Group strictly complies with the Government Procurement Law of the People's Republic of China the Tendering and Bidding Law of the People's In the supplier selection process we consider both local and global
Republic of China and other applicable laws and regulations in the regions where we operate. We continue to manage suppliers and procurement suppliers equally without discrimination based on geographical
in accordance with internal policies such as the Procurement Control Procedure and the Raw Material Supplier Management Regulations. During the location or size. Under equal competitive conditions we prioritize
reporting period we further improved the supplier management system by updating and implementing policies such as the PPAP35 Management suppliers who are more proactive in carbon reduction efforts and
Regulations for Raw Materials Auxiliary Materials and Tire Components Suppliers providing stronger institutional support for building a robust and demonstrate superior sustainable development performance in
sustainable supply chain. alignment with the Group's green supply chain strategy.Supplier Onboarding Supplier Assessment
At the supplier onboarding stage we apply unified evaluation standards and differentiated quality management system requirements. Suppliers of Sailun Group has established a classified and tiered management
key carcass materials must pass third-party audits and obtain IATF 16949 certification while other material suppliers must hold ISO 9001 certification. system for existing suppliers in accordance with the Raw Material
Natural rubber suppliers must pass the Group's second-party audit and meet relevant ISO 9001 requirements. Relevant qualifications and certification Supplier Management Regulations. Suppliers are categorized into
documents are centrally managed in the SRM system with continuous monitoring of certificate validity to ensure ongoing compliance with supplier four groups based on their roles in the business chain: manufacturers
admission requirements. production plants agents and traders. They are also managed by
material criticality including Tier 1 (critical materials) suppliers and
Tier 2 (non-critical materials) suppliers with differentiated control
requirements applied accordingly.Potential Supplier Risk Potential Supplier Development Supplier Selection and Systematic
Assessment Feasibility Analysis Management For approved suppliers we implement an annual performance
evaluation mechanism. On a yearly basis we use cross-year data
to quantitatively assess supplier performance in quality delivery
We prepare systematic assessment reports After the risk assessment is passed we Only suppliers that pass the comprehensive and overall management and assign evaluation ratings to support
on potential suppliers comprehensively review suppliers' management system evaluation may proceed to the PPAP subsequent cooperation and management decisions.analyzing their global supply footprint certifications and process capabilities review and final confirmation stage and To strengthen process oversight we conduct onboarding audits
existing cooperation basis industry based on the category of raw materials be included in the qualified supplier periodic audits and issue-based audits in accordance with the Second-
competitive landscape and potential and define PPAP submission requirements system. Supplier information is managed Party Audit Management Regulations for Raw Materials Auxiliary
risks to support risk-informed admission accordingly. This helps assess their quality systematically with key details such as Materials and Tire Components Suppliers. Audit frequency and
decisions. assurance capability and the feasibility of technical standards and testing methods methods are determined based on risk levels and may include on-
stable supply. clearly defined to ensure data integrity and site audits and supplier self-assessments. In 2025 the Group further
traceability. improved its audit requirements by incorporating social responsibility
and ESG factors into the audit scope strengthening standardized and
sustainable supplier management.Supplier Development and Onboarding Process Based on annual evaluations and audit results suppliers with major
non-conformities or persistent underperformance are subject to
35 P roduction Part Approval Process one of the five core tools of IATF 16949 used to confirm whether a supplier is capable of consistently producing qualified products at corrective actions cooperation restrictions or phase-out.
scale.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 76Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Supply Chain Quality Management Supplier Quality Empowerment
Sailun Group has established a supply chain quality management mechanism covering the receipt inspection use and handling of raw materials To enhance supplier quality capabilities Sailun Group strengthened multi-
and components. All materials are subject to batch sampling inspection and the results serve as the basis for warehousing and use. In 2025 we level training and communication based on updated quality management
revised relevant policies to strengthen quality control improve audit effectiveness and enhance performance evaluation and quality accountability. requirements. In 2025 the Quality Center completed revisions to multiple
For non-conforming materials and components the Group implements standardized disposal and corrective actions to support closed-loop quality quality management documents which were then signed by suppliers
management and improve supply chain stability and reliability. under the coordination of relevant procurement departments. The
Group also provided systematic communication and Q&A through online
meetings to support effective understanding and implementation.In daily management we integrated quality empowerment into supplier
We conduct second-party audits in strict accordance with the VDA6.336 standard. Before each audits and collaboration. On-site quality training was conducted alongside
Supplier audit we review product characteristics process flows and historical quality issues. During second-party audits and targeted guidance was provided to key suppliers
Audit the audit we focus on key product characteristics and critical process controls. We also apply to improve process control capabilities. For suppliers with serious
Management tiered audit management based on material attributes to optimize audit frequency and quality issues or repeated warnings we established a quality interview
resource allocation. mechanism under which the Quality Center organized root cause analysis
and corrective action review to ensure effective implementation. In 2025
we conducted 32 supplier quality interviews and all identified issues were
rectified and closed. We also strengthened communication and alignment
Quality In 2025 the laboratory center organized benchmarking tests with suppliers of raw materials on quality requirements through offline exchanges and other channels.Capability such as inner tubes flaps carbon black and silica. By aligning sample sources test methods
Verification and evaluation criteria we improved the consistency and comparability of test results.In 2025
Process We continued to strengthen process data sharing with suppliers. Through digital systems key
Quality production process data is regularly transmitted and monitored to identify abnormalities in a we conducted
Collaboration timely manner and strengthen early-stage quality risk control.
32
supplier quality interviews and all
To strengthen supply chain quality control Sailun Group continued to use the Quality identified issues were rectified and
Assurance Agreement as a core management tool. In 2025 the Group systematically During the reporting period closed
optimized the agreement improved its structure and expanded its scope of application. The
updated agreement strengthened requirements on quality system standards differentiated
quality indicator management quality claims quality early warning and laboratory 100%
benchmarking promoting closer alignment with Sailun's standards in production and quality
control. of our raw material suppliers signed
the Quality Assurance Agreements
36 V DA6.3: A standardized document issued by the German Association of the Automotive Industry (VDA) for
quality management systems in the automotive sector. VDA6.3 is a dedicated audit standard covering the
entire automotive supply chain.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Chairwoman Us Feature
Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 77
Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sustainable Procurement Supplier ESG Management
To strengthen sustainability risk management in the supply chain Sailun Group continued to improve its procurement policies and management To strengthen supplier ESG management Sailun Group continued to
mechanisms. In 2025 we revised the Sustainable Procurement Policy and updated related management requirements setting clear expectations on improve related policies and mechanisms and embedded sustainable
environmental protection health and safety labor rights business ethics and conflict minerals management. These requirements are embedded development requirements into supplier onboarding and management.throughout supplier onboarding cooperation and evaluation providing policy support for sustainable procurement. We established an ESG review framework centered on process oversight
risk identification performance evaluation and result application.For key raw materials such as natural rubber Sailun Group continued to implement sustainable procurement requirements and guide suppliers to By integrating social responsibility environmental protection and
improve environmental and social responsibility management through ongoing monitoring and follow-up thereby enhancing supply chain stability compliance requirements throughout supplier onboarding cooperation
and sustainability. and evaluation we continued to identify and manage supplier ESG risks
and promote effective implementation across the supply chain.The Group also continued to identify and assess supply chain risks. In 2025 we systematically reviewed key control points across procurement
processes and identified risks related to sourcing supplier management compliance and integrity covering the full process from supplier selection
and contract execution to settlement.On this basis risk identification was further refined to specific business scenarios. Key points such as tendering management quotation comparison
and non-conforming product feedback were analyzed one by one forming a three-tier risk list for more precise risk mapping.Based on the identified risks we assessed their likelihood and potential impact and developed risk grading and prioritization results. Focusing
on major and important risks we formulated corresponding response and control measures and developed a Group-level risk matrix to support
procurement and supply chain management decisions.Unstable transit Raw material Policy adjustments
times cargo safety price fluctuations changes in trade
risks import and shortages of key rules regional
export disruptions materials differences
Supply Disruption Supply-Demand
Risk Mismatch
Compliance Force Majeure
Capacity Risk
Transportation Market Risk Policy Risk
Risk
Supply delays Forecast Contract Supply disruptions
quality issues deviations performance issues caused by extreme
single-source capacity–order trade compliance or weather or
dependency mismatch integrity risks unexpected events
Supply Chain Risk MatrixAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 78Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
We conduct on-site CSR audits alongside second-party audits to strengthen oversight of suppliers' social responsibility Integrated CSR Audits and Training to Strengthen Supplier
Process Oversight performance. Key areas include labor management occupational health and safety and training implementation. Through
employee interviews on-site evidence collection and targeted audits we assess supplier management practices and ESG Management
require corrective actions for identified issues.In 2025 Sailun Group integrated CSR on-site audits with training
in second-party audits combining compliance checks with
ESG capability building. Procurement staff conducted on-site
We implement an ESG due diligence mechanism during supplier onboarding and cooperation. Reviews cover sanctions audits using standardized procedures and provided guidance
Risk Identification and export controls supply chain compliance anti-corruption and internal compliance management. Risk ratings are on sustainable procurement compliant operations and social
used to identify potential ESG risks and support cooperation decisions. responsibility requirements. This created a closed loop of issue
identification feedback training and corrective action follow-
up. During the reporting period the Group completed 30 CSR
on-site audits helping suppliers move from passive compliance
E SG requirements are included in the annual supplier performance evaluation system. With reference to international to proactive improvement.Performance Evaluation frameworks such as EcoVadis we assess suppliers' performance in labor and human rights environment sustainable procurement and business ethics. Certifications such as ISO 14001 ISO 45001 and SA 8000 as well as relevant ESG ratings
are also used as key evaluation inputs.Strengthening Face-to-Face Communication to Advance
ESG items are incorporated into supplier evaluations through a bonus-and-penalty mechanism linking ESG performance Supply Chain ESG Collaboration
Result Application with overall results. Suppliers with violations or major risks receive score deductions and are required to take corrective actions while those with strong performance receive positive incentives to drive continuous improvement across the
supply chain.To strengthen alignment with suppliers on ESG goals Sailun
Group continued to organize one-on-one on-site exchanges
with suppliers. These sessions communicated ESG principles
For issues identified during the assessment process the Group has established a corrective action mechanism. Non-conformities are addressed the Sustainable Procurement Policy and related management
in a timely manner with follow-up to ensure implementation. Under the environmental protection requirements of the Supplier Code of Conduct requirements while also providing a forum to discuss
and Compliance Commitment suppliers are required to develop remediation plans for excessive pollutant emissions and meet standards within a suppliers' progress and challenges in environmental social
specified timeframe. By linking corrective actions to performance evaluation and management we promote continuous improvement in suppliers' and governance practices and offer targeted improvement
environmental and social performance. suggestions. In 2025 the Group conducted 60 face-to-face
exchanges with suppliers supporting ESG communication and
Building on improved supplier ESG management and evaluation mechanisms Sailun Group promotes understanding and implementation of joint capability building.sustainable development requirements through audits guidance and communication and continues to strengthen supplier capability building and
collaborative improvement.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 79Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
To promote the implementation of sustainable procurement and business
ethics in procurement activities Sailun Group provided sustainable Sustainability Training for Procurement Staff to Strengthen Responsible Sourcing Capabilities
development training to all procurement staff covering ESG fundamentals case
business ethics sustainable procurement requirements procurement
responsibilities and industry trends to strengthen execution in sustainable
development management. At the same time with responsible
procurement as a key focus the Group continued to extend sustainability During the reporting period Sailun Group provided
principles further upstream in the value chain. The Procurement Center sustainable development training to all procurement staff
together with the Legal and Risk Control Department and the Sustainable clarifying the Procurement Center's role in sustainable
Development Strategy Management Office conducted a special procurement and the key priorities for the year. The training
questionnaire survey of major suppliers of key raw and auxiliary materials helped procurement staff embed ESG requirements
covering areas such as business ethics and sustainable development into supplier management and procurement decisions.practices. This work helped review the current state of sustainability Through unified understanding and clarified accountability
management in the upstream raw material supply chain identify baseline the procurement team has strengthened its comprehension
conditions and risks among core suppliers and lay a solid foundation for and execution of sustainable sourcing requirements laying
future supplier empowerment supply chain sustainability management a solid foundation for supplier management and external
optimization and upstream-downstream collaboration. communication.Our Performance
During the reporting period Sailun Group continued to strengthen policy implementation and process control around supplier lifecycle management and sustainable procurement goals. Through quantitative performance
tracking we drove steady improvement in supply chain compliance quality and sustainability. During the reporting period the specific objectives and annual progress are summarized as follows:
Target Category Supply Chain Management Target Category Sustainable Procurement
Target 2025 Target Progress Target 2025 Target Progress
By 2030 achieve During the reporting period achieved ESG By 2030 ensure participation During the reporting period
ESG compliance due compliance due diligence coverage for key rate in sustainable procurement
diligence coverage for suppliers training for all procurement 100%
key suppliers employees annually
85.52 of employees in the Procurement Center received training 100 % 100 on sustainable development% %赛轮集团｜ 2025 年度可持续发展报告 0报3告说明 管理层寄语 关于我们 专题 精益治理：筑牢合规基石 生态卓越：引领低碳转型 价值驱动：智造卓越品质 人文共生：凝聚组织合力 附录 80
ECO-HARMONY
00 04 Fostering Organizational Cohesion
Inclusive Workplace Talent Development Employee Care
Occupational Shared Success Philanthropy and
Health and Safety Through Collaboration Public Welfare
Sailun Group always regards its employees as a vital resource for enterprise development.Through a fair recruitment process competitive compensation system and comprehensive
training and development mechanism we continuously enhance employees' professional
capabilities and welfare. Meanwhile we prioritize employee health and safety create
a supportive work environment and strive to build an efficient and cohesive team. We
also actively fulfill our social responsibilities by participating in public welfare initiatives
contributing to the sustainable development of society.UN SDGs:About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 81Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Inclusive Workplace The Group is committed to creating a warm and inclusive workplace for employees with diverse needs and backgrounds. While continuously improving customer service professionalism we also push for
We insist on compliant employment in accordance with the law continuously improve employment management the optimization of our employee-friendly labor policies. In 2025 the Group focused on addressing the
mechanisms and foster a diverse equitable and respectful work environment. We attract and select suitable differentiated demands of customer service center employees by piloting a flexible work system combining
talent through standardized recruitment and hiring processes promote an inclusive communication and "flexible scheduling and remote work." This system tailors work schedules and office models to the
collaborative atmosphere in daily management while continuously strengthening employee rights protection personalized needs of different groups ensuring full coverage of customer service while maximizing work-
measures to effectively safeguard employees' legitimate rights and interests as well as job stability. life balance for employees. It effectively reduces commuting pressure and lowers safety risks associated with
nighttime travel truly embedding the human-centered philosophy of "what matters to Sailun people is our
top priority" into employees' daily work.Our Goals
We fully address the differentiated needs of various employee groups and continuously improve our
We are committed to fostering a diverse and inclusive workplace environment ensuring that every employee can realize humanistic care system. To support the integration of overseas employees we provide English-language
their full potential in an equitable and fair atmosphere. We strive to optimize recruitment processes provide equal onboarding kits and expand recruitment formats for overseas students. We prioritize special protections
opportunities support women's career development and the employment of special groups and drive continuous for female employees in medical examinations safeguard women's health rights and interests and are
improvement in our corporate culture and management mechanisms thereby creating a work atmosphere that respects gradually establishing "Mother's Rooms" at the Group's headquarters and various continuously operating
differences and embraces diversity. To further strengthen support for women's employment we have set clear diversity factories to create a more friendly and supportive work environment for female employees. In 2025 we
goals for recruitment: from 2025 to 2030 the proportion of women among newly recruited employees in the launched the "Career Consultation Column for Female Job Seekers" and initiated the "Female-Specific
Group's functional centers will reach a cumulative 40%. Internship Program" continuously expanding career development opportunities for women and steadily
Our Initiatives advancing diverse employment practices.Sailun Group continues to strengthen its compliant employment and human rights protection system strictly adhering
to applicable laws and regulations in all operating locations including the Labor Law of the People's Republic of China "Sailun Reception Hall" Open Day event exclusively for Indonesian international students case
and the Labor Contract Law of the People's Republic of China. Drawing on international standards such as the United
Nations Guiding Principles on Business and Human Rights the International Labor Organization (ILO) conventions
and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct the Group has improved its
mechanisms for the prevention verification handling and rectification of child labor. In 2025 Sailun Group published Sailun Group hosted the "Sailun Reception Hall" Open Day event exclusively for Indonesian
the Sailun Group Global Human Rights Policy which clearly sets forth requirements for human rights protection international students systematically showcasing the development practices and
compliant recruitment and equality and diversity covering the entire lifecycle of recruitment and employment. employment environment of Chinese enterprises through on-site visits executive exchanges
Concurrently the Group updated its Recruitment Guidebook reinforcing non-discriminatory recruitment requirements and presentations on the talent development system. Centered on open communication
adopting a "blind recruitment" mechanism and structured assessment tools to enhance recruitment fairness while the event helped overseas young people understand corporate culture and career paths
improving training evaluation and grievance mechanisms to ensure recruitment compliance and rights protection. broadening their access to career information and development opportunities. By building a
cross-cultural talent exchange platform Sailun Group organically integrates its global talent
Diversity and Equality Guarantee strategy with the principles of diversity and inclusion promoting cultural mutual learning
Sailun Group integrates the principles of equality respect and inclusion into all aspects of employment management and the realization of shared value.explicitly opposing discrimination based on gender ethnicity region religion or other factors and ensuring equal opportunities
for employees in recruitment compensation training and career development. Concurrently we prohibit child labor and
oppose forced labor enforce mandatory identity verification during onboarding and dynamic monitoring during employment
and have established standardized remediation and accountability procedures covering termination of employment health
protection full compensation and escort and handover arrangements. Through multi-channel confidential complaint and
reporting mechanisms we strive to build a diverse and equitable workplace. During the reporting period to further promote
the construction of a strong corporate culture the Group advocated cultural values that are embraced by all employees and
aimed to unite the cultural consensus of its global workforce. The bilingual Chinese-English version of the Sailun Cultural
Philosophy was released enhancing the pride and sense of mission among Sailun employees. This initiative continues to
inspire innovation and entrepreneurial enthusiasm within the Group providing a constant source of powerful momentum for
Sailun's sustainable development.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 82Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Global Employer Brand Video: Growth
Stories of Diverse Talent case Women's Employment Support Program case
Sailun Group in collaboration with China Global Television Sailun Group launched the Women's Employment
Network (CGTN) and LinkedIn released a global employer Support Program to support women's career
brand promotional video. Centered on the career growth development and attract diverse talent through
journey of a Cambodian international student at Sailun the targeted initiatives. We carried out women-focused
video showcases her career development path from graduate career guidance activities at universities and set up
to mid-level manager reflecting the Group's long-term a Women's Career Support section with each event
development mechanism for international talent. Through serving more than 100 students. We also launched the
this real-life story Sailun Group conveys to the world an Women-focused Internship Program offering frontline
employer philosophy that respects diversity values growth internship opportunities to help female candidates
and ensures fair opportunities demonstrating its inclusive strengthen professional skills and better understand
and open corporate culture and global brand image. job roles. The program has supported 86 female
students in gaining internship experience at Sailun
Group.Women's Career Development and Leadership Enhancement Program case
In March 2025 Sailun Group launched the online learning program
"Women's Career Development and Leadership Enhancement"
in observance of International Women's Day. Designed around
the diverse needs of female employees in career growth and
personal development the program offers course content such
as women's leadership and workplace social etiquette. Delivered
through online learning the program has attracted a total of 870
participations continuously empowering female employees in
their professional competence enhancement and personal well-
being while fostering a more inclusive organizational environment
that supports women's development.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 83Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Unblocking Recruitment Channels
To support its globalization strategy Sailun Group continuously optimizes its campus recruitment and social recruitment systems attracting high-quality talent to ensure the Group's sustainable development. We strictly adhere to
the principles of compliant employment and have established standardized procedures covering recruitment hiring and active employment management. In 2025 we standardized the release of recruitment information ensuring
that job descriptions are objective and non-discriminatory and conducted recruitment through multiple platforms in an open manner. Additionally we have established unobstructed complaint and reporting channels handling
issues such as discrimination harassment or forced labor in accordance with laws and regulations and with strict confidentiality thereby effectively safeguarding employee rights and eliminating retaliation.Deepening University–Enterprise Cooperation
to Build a Global Talent Deepening University- Advancing Industry–Academia–Research
Enterprise Collaboration to Build a Global Collaboration and Exploring Industry
Campus Recruitment for a Shared Future case Talent Development Platform case Frontiers case
The Talent Week program has been successfully held for five In 2025 Sailun Group continued its Workplace Roundtable In 2025 Sailun Group launched the Tire+ Lab program.consecutive years and has become a signature recruitment campus series. Going beyond traditional recruitment Through R&D center visits and technical exchanges the
event among local universities. In 2025 the program further the program brought senior executives and alumni into Group shared the latest industry technologies and future
expanded to key universities such as Qingdao University universities such as Shandong University Jilin University trends with teachers and students from China University of
of Science and Technology and Ocean University of China Dalian University of Technology and Ocean University of Petroleum (East China). The program reflected the Group's
attracting more than 5000 students. The event effectively China to engage with students on career planning and commitment to education and knowledge sharing while
supported graduate employment and enhanced Sailun industry insights. More than 300 students participated also helping young talent gain industry insight and career
Group's employer brand. Going forward the Group plans to helping promote closer industry–academia collaboration inspiration and supporting the Group's long-term talent
extend this model to more regions. and talent development. pipeline.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 84Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Strengthening Talent Inventory
Sailun Group continued to deepen its talent review process and systematically mapped responsibilities roles and talent structure from the
perspectives of strategy business and organizational alignment gradually building a competency-based talent management framework. In 2025
the Group further advanced its job qualification system upgrading talent review from identifying the current workforce to better supporting talent
development strategy execution and sustained business growth.To build a scientifically sound and standardized talent management system that supports organizational strategy execution and sustained business
growth in 2025 the Group launched the job qualification system development outputting qualification standards for 269 positions based on the
professional job mapping. The core framework of the qualification standards includes three parts: basic conditions professional contributions and
key capabilities. These standards serve as the capability blueprint for the development of professional talent driving the alignment of employee
capabilities with the key competencies of the positions and guiding the development of talent and organizational capabilities.Our Performance
Target Category Target 2025 Target Progress
From 2025 to 2030 the proportion of women During the reporting period the proportion of
Diversity among newly recruited employees in the Group's women among newly recruited employees in
Equality and functional centers will reach a cumulative the Group's functional centers reached
Inclusion
40%43%
Employee Employment Overview Table
Indicator Unit 2025
Regular Employees Persons 25128
Number of Employees by Gender
Female Employeess Persons 4348
Percentage of Female Employees % 17.30
Percentage of Women on the Board % 14.29About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 85Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
During the reporting period Sailun Group continued to improve its As of the end of the reporting period a total of
talent recruitment and development system steadily enhancing
overall human resources management. These efforts delivered solid factories in operation under the Group had obtained SA8000 Social Accountability
results and the Group received multiple employer branding awards in 7 Management System certification providing solid safeguards for talent recruitment
recognition of its strong performance in employer branding. stable development and employee training.
2025 China Best Employer Award –
Most Promising Employer
Peking University Social Survey Research
Center National School of Development Peking
University(NSD) and Zhaopin
Shandong Annual Extraordinary
2026 Outstanding Employer Employer
51Job LiepinAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 86Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Talent Development By the end of the Reporting Period the HRIS37 training module had been rolled out across all domestic entities. For overseas plants training
implementation was tracked through offline delivery and follow-up on
Sailun Group has always regarded talent development as a key pillar supporting the organization's sustainable growth. Focusing on training plans data and supporting documents to ensure effective execution.employee capability enhancement and career development the Group continuously improves its training and development systems
career pathways performance management and incentive mechanisms fostering an organizational environment conducive to talent We also continued to invest in employee training and capability building
growth and promoting the coordinated development and shared progress of employees and the enterprise. by establishing a systematic training framework covering key roles and
compliance requirements. For special operations and critical business
certifications we provided paid training and reimbursement support. We
Our Goals also encouraged employees to pursue degree programs skills training
professional title evaluation and qualification certifications helping enhance
Centered on employee growth and organizational capability professional capabilities and career competitiveness while building a talent
enhancement Sailun Group is committed to providing employees Training System Development team with a global mindset and long-term development capabilities.with clear career pathways and fair transparent growth
opportunities. The Group will continue to improve its training and We continue to advance process standardization and digitalization Talent Training and Development System
development systems qualification and promotion mechanisms systematically improving key stages such as training needs
performance appraisal and incentive systems enhancing identification training plan formulation implementation and Sailun Group has built a tiered and categorized training system centered on new
employees' professional capabilities and job competencies organization and effectiveness evaluation. employee training professional line training and management line training
stimulating organizational vitality and building a high-quality Training Needs Management addressing employees' full-cycle development needs. New employee training
sustainable talent pipeline aligned with the Group's strategy to facilitates rapid integration and foundational capability building; professional
support its high-quality development. During the reporting period We have defined and standardized the five major sources of line training strengthens job-specific competencies and technical accumulation;
the Group set medium- and long-term goals for employee career training needs established a unified and standardized needs management line training enhances management aptitude and leadership submission mechanism and ensured the comprehensiveness
development and planning: By 2030 the average annual training and accuracy of annual training needs identification. capabilities. Through systematic and progressive development we continuously
hours per employee across the Group will reach 25 hours. improve employees' professional skills and management capabilities providing
Training Plan Formulation stable talent support for the Group's high-quality development.Our Initiatives
We provide training enablement to all units of the Group reviewing During the reporting period to deepen the "people-centered" philosophy and
Employee Training and guiding the translation process from training needs to training support its globalization development Sailun Group launched a special initiative
plans thereby enhancing the scientific basis relevance and on employee skills and comprehensive competency assessment. The program
To continuously improve the talent training system and enhance feasibility of training plans. follows a closed-loop approach of learning testing practice evaluation selection
the professional level of training management Sailun Group has recognition and application and is structured around three dimensions: culture
further strengthened its training management mechanisms based Training Implementation and Evaluation discipline and professionalism. It systematically mapped more than 5000
on the Training Management Regulations and Training Resource detailed job positions and developed extensive test banks and learning materials.Management Regulations. In 2025 the Group revised the Internal We have launched the HRIS training module enabling full-process Through company-wide learning standardized testing and skills competitions
Trainer Management Regulations systematically improving full- online management of training plan confirmation attendance tracking examinations evaluation and summary. Leveraging the program reached about 24000 attendances during the year. The results were
process management requirements covering internal trainer the organizational structure we have implemented step-by-step closely linked to talent review recognition and development helping build
selection and admission tiered development and professional approval processes to strengthen process control. a fair and science-based talent evaluation and development system support
evaluation. It further optimized the teaching incentive mechanism continuous employee growth and strengthen the talent foundation for the
clarified grade advancement pathways and exit management Group's sustainable development.standards ensuring the standardized operation of the internal trainer End-to-End Training Management System
team and the continuous enhancement of their capabilities. 37 H RIS: Human Resources Information System.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 87Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Strengthening the New Employee
Training System case Strengthening Professional Capability Building case
Campus Graduate Onboarding Training IT Product Manager Training: Building Digital Talent Targeted Recruitment Workshop: Strengthening
Professional Capability and Compliance Awareness
For new graduates joining in 2025 Sailun Group organized Sailun Group carried out a dedicated training program for
an eight-day onboarding training program. The program IT product managers to strengthen professional capabilities In 2025 the HR Center organized a targeted workshop
covered corporate culture and mission strategy and for digital transformation. Through classroom learning to strengthen recruitment capabilities. The program
planning organizational strengthening and other related and thematic discussions the program systematically covered recruitment policies and process standardization
topics while also introducing workplace transition and tire improved participants' understanding of product manager risk prevention and compliance management and
manufacturing processes. Through classroom learning responsibilities methodologies and tool application. After professional skill development. Through interviewer
thematic discussions hands-on practice and on-site two rounds of intensive training and practical exercises certification training structured interview skills training
production training the program helped new employees participants delivered multiple product solutions and tool and in-depth analysis of typical recruitment cases the
better understand the Group's development approach and templates achieving clear improvement in both mindset Group further standardized recruitment practices and
business operations. and professional skills and helping build digital talent for the improved recruiters' ability to assess and select talent
Group's transformation. objectively.Vietnam Site Local Graduate Development Program
To support the development of locally recruited university
graduates in Vietnam Sailun Group built on its unified
2.5-year graduate training program and added localized
requirements based on local needs. The program provides
targeted development in job skills career growth and
organizational integration helping build a stable local
talent pipeline and support business growth and talent
development at the overseas site.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 88Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
To support global expansion and the stable operation of overseas businesses we continued to strengthen our localized overseas talent development
system. Based on different plant development stages and business needs we set differentiated talent management goals and implemented systematic
Advancing the Management Talent Pipeline case development programs to enhance the professional capabilities cultural alignment and management potential of overseas employees gradually
strengthening the local talent foundation for overseas plants and markets.For recent graduates the Group strengthens localization training requirements based on the 2.5-year university student development plan reserving
"Milian Camp" Program: Supporting the Transition of young talent for overseas factories. The "Eagle Program" is implemented for newly appointed team leaders to enhance management awareness and
New Managers job performance capabilities. Additionally Six Sigma Yellow Belt training is conducted for frontline employees and key business personnel to improve
systemic thinking and continuous improvement capabilities. Through multi-level progressive talent development the Group continues to improve the
For newly promoted managers the Group launched the construction of local talent teams overseas promoting team stability and cross-cultural integration.Milian Camp development program. Covering mindset shift
capability assessment intensive training capability building
improvement practice and self-development the program
combined classroom learning discussions and practical "Banmo Academy" Program: A New Model Development for Successors and New Managers:
application. It focused on cultural alignment management for Local Talent Development case Strengthening the Local Management Pipeline case
mindset and core management skills helping new managers
transition effectively from individual contributors to
management roles and better support business development.Sailun Group together with Qingdao Technical College the At the Vietnam site Sailun Group launched the "Hundred
Government of Indonesia and local universities launched the Talents Program" to develop high-potential employees for
Indonesia–Banmo Academy program. Oriented toward long- the management pipeline. At the same time drawing on the
term human capital investment the program supports local domestic Milian Camp model the Group provided systematic
youth in improving employability promotes the modernization training for newly promoted Vietnamese managers covering
of vocational education and strengthens industrial and cultural nearly 200 employees in total. These efforts supported
exchange between China and Indonesia. It also reflects the role transition and strengthened management awareness
Group's active role in supporting inclusive growth and cross- cultural understanding and job readiness laying a stronger
cultural collaboration. foundation for the stable operation and sustainable
development of overseas plants.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 89Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Employee Promotion
Sailun Group continued to improve its career development and promotion system
building dual career paths for both management and professional talent. This includes
further standardizing role mapping job sequences grade levels and titles and clarifying
career paths and promotion standards to enhance transparency and consistency.At the same time we continued to improve our closed-loop mentoring system covering
cultural guidance standards capability building practical projects and incentive-based
evaluation. This helped make mentoring more systematic and scalable. In 2025 average
satisfaction with mentoring reached 97 points providing strong support for key talent
development and continuous organizational capability building.Annual Teachers' Day Event
Standardizing and
Solidifying Standards Optimize the Mentor Management System strengthen mentor profiling and behavioral requirements
Systematically Enhancing Standardize mentoring experience through the development of outputs such as the Mentor Case
Mentor Mentoring Skills Collection Mentor Mentoring Checklist and Mentor Learning Map
Accumulating Mentoring Experience Accumulate experience through development programs such as New Graduate Onboarding
Through Project Practice Training and the Milian Camp
Systematic Mentor Management Mechanism
Compensation and Incentives
Sailun Group continued to improve its compensation management system through policies such as the Compensation Management Regulations and
the Regulations on Compensation and Benefits Management Regulations for International Assignees. The Group has established a globally aligned
compensation system that balances fairness and incentives with clear structures and mechanisms for compensation determination and adjustment.Employees receive both fixed and variable pay linked to performance. At the same time the Group continued to implement a medium- to long-
term equity incentive plan for key talent covering directors mid- and senior-level managers and core employees to strengthen talent attraction
and retention. In 2025 the Group revised the Compensation Management Regulations for Directors and Senior Management of Sailun Tire further
standardizing compensation structure performance linkage payroll calculation and payment and clawback mechanisms and continuing to improve
its compensation framework with both incentives and accountability.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 90Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Performance Assessment Our Performance
In 2025 we revised and improved the Performance Management Control During the reporting period Sailun Group continued to conduct multi-level multi-format training activities focused on employee training and career
Procedure and the Performance Bonus Assessment Management development. The specific targets annual progress and relevant training data are disclosed as follows:
Regulations based on our strategic development. These revisions clarify
monthly quarterly semi-annual and annual appraisal cycles establish
key performance indicators (KPIs) across dimensions including customer
financial internal operations and learning and growth combining Target Category Target 2025 Target Progress
quantitative and qualitative metrics and conduct root cause analysis and
improvement for underperforming items thereby enhancing the scientific
basis and execution capability of performance management. By 2030 the average annual training During the reporting period the
Career and hours per employee across the Group average annual training hours per
At the same time we have signed Employee Performance Responsibility Development will reach employee across the Group reached
Letters with all employees institutionalizing job responsibilities
performance targets and evaluation criteria to achieve fully traceable 25 hours 19.04 hours
management. During the reporting period the signing rate for Performance
Responsibility Letters reached 100% effectively promoting the alignment
of individual goals with organizational strategic objectives and enhancing
management consistency and transparency.Indicator Unit 2025
Total Number of Employees
Trained Persons 25128
Total Number of Training
Participant-Takes Attendances 454242
Percentage of Employees Trained % 100
Employee Training and
Development Expenditure RMB 8560638.30
Number of Employee Training
Sessions Times 4934About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 91Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Employee Care
Sailun Group leverages a comprehensive employee care system and open communication mechanisms as a bridge to continuously enhance mutual understanding and trust between the enterprise and its employees
fostering an open inclusive and collaborative work atmosphere. This supports employees in achieving shared growth through stable support and positive interaction pooling development synergy to move together
toward a sustainable future.Our Goals
We are committed to creating a caring supportive and respectful work environment by comprehensively enhancing the employee welfare system focusing on employee health psychological care and work-life balance.Concurrently we strive to strengthen democratic communication channels ensuring that employee voices receive effective feedback and responses promoting positive interaction between employees and the Group and fostering
employees' holistic development and enhanced career well-being. During the reporting period the Group set medium- and long-term goals around employee care: With 2024 as the baseline by 2030 the Group aims to achieve
an employee satisfaction survey score of 94 or above.Our Initiatives
Employee Benefits
To improve the employee care and welfare protection system Sailun Group has formulated and implemented the Regulations on Employee Benefits Management and the Regulations on Employee Care and Assistance
Management establishing unified standards for employee benefits and care. While providing basic protections such as social insurance paid leave and holiday benefits in accordance with laws and regulations the Group has built
a multi-tiered employee welfare and assistance mechanism covering health care hardship assistance work support and humanistic care. Through institutionalized and regularized initiatives the Group enhances employees' sense
of fulfillment and belonging fostering a stable and harmonious labor relationship.Work-Life Balance Health Benefits Employee Care
L eave Care: Provide paid leave for accompanying children Holiday Care: Organize activities such as Family Day Open T argeted Assistance: Provide marriage subsidies bereavement
during high school and college entrance exams exceeding Day care and support visits and Family Visit Day allowances family member medical subsidies children's
legal requirements; offer equal parental leave Holiday Care: Organize activities such as Family Day Open education assistance and recuperation and rest leave
Facilities and Amenities: Improve employee living Day care and support visits and Family Visit Day O verseas Employee Care: Provide specialized care including
conditions by upgrading dormitory furniture and appliances; health checkups and care visits for overseas employees and their
upgrade employee catering services families
Flexible Attendance: Provide flexible work arrangements R etired Employee Care: Organize honorary retirement
and remote working mechanisms for certain roles ceremonies
breastfeeding female employees and overseas employees
H oliday Care: Organize activities such as Family Day Open
Day care and support visits and Family Visit Day
Employee Welfare SystemAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 92Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
During the reporting period we established a special task force for dormitory renovation and improvement comprehensively advancing facility upgrades for employee dormitories to enhance living conditions and improve
employees' quality of life. The dormitory renovation project covers infrastructure renovation furniture and appliance replacement and information system construction aiming to create a warmer and more comfortable living
environment for employees.Smart Upgrade of Employee Dormitories Worldwide to Enhance Employee Well-being case
To put its people-centered philosophy into practice and better protect employee well-being Sailun Group launched an employee dormitory upgrade program guided by the belief that working hard is for a better life.During the reporting period with an investment of over RMB 30 million the Group completed the renovation and construction of dormitories at multiple domestic and overseas including Qingdao and Shenyang
creating living spaces that are more convenient comfortable safe and smart.The program covers dormitory renovation reconstruction expansion smart home and appliance upgrades and the development of smart management systems. For infrastructure upgrades Sailun Group worked with
professional design firms to develop standardized plans with construction carried out by professional teams under closed-loop supervision to ensure project quality. For furniture and appliance upgrades the Group
adopted centralized procurement to ensure consistent standards and invited employee representatives from multiple departments to participate in on-site product selection and evaluation balancing product quality
with employees' practical needs. On the digital side Sailun Group launched a Group-wide smart dormitory management system covering the full process from move-in and room transfer to move-out. Compared with
traditional methods this significantly improved efficiency. Supported by smart IoT devices the system also enhanced management efficiency and employee experience creating a new dormitory management model
featuring online services smart management and refined operations.As of the end of the reporting period the dormitories at the Qingdao and Weifang plants had been renovated and put into use the Shenyang plant had entered the acceptance stage and work at the Dongying plant
was progressing in phases. Employee satisfaction with completed and operational dormitory projects exceeded 85 points with the highest score reaching 90.18 points. The program not only helped shift dormitory
management from a broad approach to refined management but also addressed frontline employees' key housing needs strengthened their sense of belonging and enhanced organizational cohesion. It is a key
example of the Group's commitment to employee care and social responsibility and provides strong support for talent attraction and long-term development.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 93Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
We have established a care system covering the entire cycle from
application to onboarding providing comprehensive support for Sports Activities Festival Activities
campus hires. For the 2025 cohort of campus hires we prepared signing
gift boxes and Chinese New Year gifts and compiled the Onboarding National Rubber Sports Games 3V3 Group Headquarters International Women's Day Fun Sports Day Lantern Festival
Guide to help new employees transition smoothly into the workplace. Basketball Tournament EcoPoint3 Cup Table Tennis Tournament Riddle Guessing Mid-Autumn Festival Gala etc.The guide covers mindset transformation psychological preparation Mini Marathon Fun Run etc.common work methods and other topics assisting them in quickly
adapting to the professional environment.Additionally we actively organize diverse cultural activities to enhance
employees' sense of belonging and team cohesion. During the reporting
period the various activities we conducted are as follows:
Cultural Activities
EcoPoint3 Ambassador Photography Competition Speech
Contest Waste Tire Creative Competition etc.Intellectual Exchange Activities
Symposiums Reading Clubs Co-
creation Workshops Sharing and
Exchange Sessions etc.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 94Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Bringing Global Teams Together Through "Sailun Family Carnival: The Wonderful Democratic Communication
Sports and Cultural Integration case World of Tires" Parent–Child Study Tour case We continued to improve channels for employee feedback and
grievance handling supporting communication and appeals through
email telephone and other channels. We also protect the privacy
of those who raise concerns and have established standardized
To support employee well-being strengthen team In 2025 the Sailun Group labor union organized the "Sailun procedures to ensure timely and fair responses. In addition we signed
cohesion and deepen cultural connection Sailun Family Carnival: The Wonderful World of Tires" parent–child a renewed collective agreement with employees in accordance with
Group encouraged employees worldwide to take part study tour. Centered on tire technology the program included the law in June 2025. The agreement covers employment standards
in the Second Sports Games organized by the National showroom and factory visits tire knowledge sessions and freedom of association working hours and leave compensation and
Engineering Research Center for Rubber and Tire. The hands-on activities offering employees' children an engaging benefits occupational health and safety and employee development
Group formed 19 teams from R&D production sales and and educational experience. It also helped them better providing institutional support for employee rights and stable labor
functional departments across its global operations. The understand their parents' work environment and the Group's relations.event provided a platform for employees to stay active culture further strengthening family identification and sense
and connect with one another. A family participation of belonging. At the same time Sailun Group continued to strengthen corporate
segment for employees' children further extended care culture through value communication cultural activities and exchange
to employees' families. This event reflected the Group's programs. During the reporting period we launched and phased
people-centered values and helped enhance employees' in the employee anniversary badge program further strengthening
sense of belonging and organizational cohesion. employees' sense of belonging and organizational cohesion.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 95Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Improving Employee Communication Employee Satisfaction
Channels to Drive Continuous Service Quality
Enhancement case To systematically listen to employee voices and assess organizational performance Sailun
Group conducts annual employee satisfaction surveys for all domestic and international
employees. During the reporting period we carried out an employee satisfaction survey
covering eight dimensions including strategy and business objectives organizational
We continuously strengthen employee communication management mechanisms and processes resource support corporate culture
through forms such as the Employee Representative humanistic care mechanisms and processes team management and talent management
Congress administrative tea sessions thematic symposiums comprehensively identifying organizational strengths and areas for improvement to provide
and employee cultural activities focusing on areas of data-driven support for management optimization.employee concern including travel management logistics
services dormitory management property security and The survey adopted an anonymous questionnaire format covering all employees of the Group
catering services. During the reporting period the Group and included an open-ended feedback section receiving over 22000 valid questionnaires
headquarters held administrative tea sessions and "Sailor and more than 2000 suggestions. The survey results showed that employees maintained high
Walk" themed exchange activities conducting face-to-face ratings regarding the clarity of the Group's strategic objectives identification with corporate
communication on the operation of business platforms and culture and stability of organizational operations. The Group simultaneously analyzed
logistics services and collecting and responding to opinions feedback from employees across different job types tenure levels educational backgrounds
and suggestions on-site. Additionally interactive activities and age groups and developed targeted improvement plans based on the survey findings.such as Dormitory Dragon Boat Festival events and barbecue These efforts continuously optimize management mechanisms employee care initiatives
festivals were organized to enhance employees' sense of and development support systems promoting the collaborative growth of employees and the
participation and identification. We will continue to integrate organization.employee feedback into management optimization
continuously improving service quality and satisfaction to Employee Satisfaction Survey Results
establish a closed-loop communication process. Our Performance
During the reporting period we signed a collective agreement with all employees with 100% coverage. The overall participation rate in the 2025
employee satisfaction survey increased from 92.71% to 94.82%. During the reporting period the specific objectives and annual progress are
summarized as follows:
Target Category Target 2025 Target Progress
Based on 2024 as the During the reporting period This not only enhanced
baseline by 2030 the improvements were made based on employee happiness
Human Rights Group aims to achieve employee satisfaction feedback from and sense of belonging
an employee satisfaction the previous year resulting in an but also fostered the
survey score above overall satisfaction score of cohesion necessary
94 93.81 for the Group's developmentMessage
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 96Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Occupational Health and Safety
regularly conducting the "Take Photos of Safety Hazards" campaign to
Sailun Group has always prioritized employee occupational health and safety as a key management issue continuously improving its promptly identify and report hazards thereby improving the coverage and
occupational health and safety management system and related measures to systematically prevent and reduce safety risks effectively effectiveness of hazard identification.safeguard employee health and safety and lay a solid foundation for the Group's sustainable and stable development.To advance the upgrade of safety management from "institutional
constraints" to "cultural awareness" the Group uses KYT (Hazard
Identification Training) activities as one of the key methods for promoting
safety culture. The KYT activities focus on work teams as core units and are
Our Goals conducted regularly every month making safety management a fixed part
of the daily operations of work teams ensuring that risk identification and
We place employees' health and safety at the center of our efforts and continue to improve our occupational health and safety management. safety precautions become habitual for employees. The activities involve
By strengthening our production safety management system implementing occupational health policies and improving emergency response full participation in on-site observations risk discussions countermeasure
mechanisms we work to prevent and control safety risks effectively. At the same time we continue to promote a strong safety culture enhance formulation and hand signaling allowing every employee to be an active
employees' safety awareness and self-protection capabilities integrate occupational health and safety management into daily operations participant builder and promoter of the safety culture. Currently the
reduce workplace risks and set medium- and long-term targets: By 2030 with 2024 as the baseline the Group aims to reduce the lost work KYT activities have been extended to cover front-line teams effectively
rate per million man-hours by 50%. enhancing employees' risk identification and safe operating skills. At the
same time the Group promotes the JSA (Job Safety Analysis) tool at its
factories turning safety culture principles into standardized executable
Our Initiatives work actions. The core of the JSA tool is to guide employees to proactively
conduct risk identification develop preventive measures and adhere to
Sailun Group strictly complies with the Work Safety Law of the People's Republic of China the Law of the People's Republic of China on the safety regulations before every task. This aligns closely with the Group's
Prevention and Control of Occupational Diseases the Law on Occupational Safety and Hygiene of Vietnam the Labor Law of the Kingdom of safety culture philosophy of "Safety First Prevention First Full Participation
Cambodia Regulation of the Minister of Manpower and Transmigration of the Republic of Indonesia Number 15 and other applicable laws and Continuous Improvement."
and regulations in the countries and regions where we operate. We implement safety procedures risk control and emergency management
in accordance with internal policies such as the Regulations on Safety Production Rewards and Punishments and the Emergency Safety In line with the safety compliance management system for equipment
Management Regulations. During the reporting period we revised multiple occupational health and safety policies including the Regulations operations the Group has adopted the LOTO (Lockout-Tagout) system as a
on Change Management for Work Safety and the Regulations on Work Safety Training Management to further strengthen occupational health mandatory compliance standard for equipment safety management. The
management. We also maintained a safety responsibility system covering all employees with clear safety duties at each level. By setting safety Group has developed a unified LOTO management system standardized
targets and carrying out tiered assessments we embedded safety management requirements into daily operations. operating procedures and rigid evaluation mechanisms to ensure
consistent and compliant implementation across all factories. The LOTO
system is a mandatory safety regulation at all factories requiring 100%
Work Safety adherence to the LOTO process for all operations involving equipment
entry or proximity to moving parts. Regular compliance training and
Sailun Group continues to improve its workplace safety governance system driving the transformation of safety management from system practical assessments are conducted for LOTO ensuring that all equipment
control to organization-wide participation. The Group has established an organization-wide safety management mechanism clarifying safety operators and maintenance personnel in the factories are fully proficient
responsibilities for managers at all levels and integrating safety management responsibilities into daily operations. Through monthly safety in the operating procedures and compliant with the requirements. This
performance evaluations the Group strengthens objective decomposition and process control enhancing the execution capability of safety eliminates the physical risks of unintended equipment startup effectively
management. Additionally through incentive mechanisms the Group encourages employees to actively participate in safety management safeguarding the life and health of workers in all factories.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 97Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
AI-Empowered Smart Safety Risk-Tiered Management Mechanism
To continuously enhance workplace safety management and strengthen the defense line for safe production through digital and intelligent We continuously strengthen accident warning education and closed-
technologies the Group actively applies cutting-edge technologies such as AI vision deep learning and intelligent sensing. Focusing on multiple loop rectification management. On the basis of daily workplace safety
application scenarios including human-machine interaction risks vehicle operation risks and the digitalization of safety management we are driving communication and regular specialized training we also ensure the
the upgrade of safety management from a model based on "human prevention + physical prevention" to one based on "technological prevention + effective implementation of preventive measures through accident
intelligent prevention." These efforts effectively reduce the risk of safety incidents and comprehensively improve safety governance capabilities and case studies rectification measure verification and implementation
operational standards. tracking. During the reporting period Sailun Group factories regularly
conducted safety education and emergency drills for all employees
In terms of intelligent control over area intrusion the Group adopts AI visual recognition and deep learning algorithms deploying high-definition continuously enhancing employee safety awareness and emergency
cameras in high-risk areas to capture real-time images and transmit them to AI servers for analysis and processing. The system is preset with protection response capabilities driving the continuous improvement of safety
boundaries and intrusion rules. Once personnel or objects are identified as entering restricted areas the system immediately triggers equipment management levels.shutdown and audible and visual alarms preventing injuries caused by contact with hazardous parts.Special Initiative to Enhance Emergency
The forklift intelligent collision warning system powered by AI vision fusion technology is equipped with intelligent cameras mounted on forklifts to Response and First Aid Capabilities case
accurately identify and track surrounding personnel. When a person enters the warning range the system proactively issues alerts; when the person
reaches the danger range the system automatically stops the forklift preventing collision accidents at the source.Meanwhile the Group has established an EHS digital safety information platform to enable interconnected sharing and intelligent analysis of safety During the reporting period Sailun Group's ACTR factory
data and to automatically generate management reports. Through coordinated operation across different modules the platform records duty organized and conducted 36 emergency response and on-site
performance data pushes tasks and tracks follow-up actions in a closed-loop manner. It will serve as an intelligent hub for safety management first aid drills focusing on mechanical injuries and electric shock
integrating risk monitoring information processing and intelligent analysis thereby reinforcing the safety foundation for the Group's sustainable incidents with a total of over 900 employee participations. The
development. drills focused on strengthening skills such as initial incident
response hemorrhage control and bandaging and basic first
aid procedures effectively enhancing employees' emergency
reaction capabilities and self-rescue and mutual aid skills in
response to sudden accidents.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 98Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Occupational Health and Safety Management Strengthening Occupational Health and
Sailun Group has continuously strengthened occupational health management. Every Sailun Group continues to strengthen its occupational health Emergency Rescue Capabilities case
year the Group engages third-party institutions to conduct testing of occupational hazard management. Each Through pre-job training and on-site
factors in the workplace dynamically updating the Job Position Occupational Hazard communication the Group enhances occupational health
Notification Cards to ensure that employees fully understand job-related risks and awareness develops special emergency response plans In 2025 Sailun Group's Weifang factory in collaboration
protective requirements before commencing work. We continue to strengthen personal for potential occupational hazards and conducts regular with medical institutions and professional lecturers from the
protective equipment (PPE) management and improve occupational health facilities. Each drills. We regularly organizes occupational health and safety Red Cross Society of China conducted hands-on training
of Sailun Group's factories provides employees with PPE that meets standards based on training covering key groups such as new employees workers in cardiopulmonary resuscitation (CPR) and AED usage. By
the specific risks of their positions and has established a "demand-based allocation and in special and confined space operations managers and combining theoretical instruction with on-site drills the training
dynamic adjustment" mechanism. Regular training on the proper use of PPE is conducted personnel from external partners. The training adopts a systematically enhanced employees' emergency rescue skills and
to ensure that employees wear it correctly and receive effective protection. During the tiered and categorized approach covering safety regulations incident response capabilities further strengthening the safety
reporting period Sailun Group's Weifang factory constructed new facilities including operating procedures risk identification emergency response competency of all employees and laying a solid foundation for
employee changing rooms shower rooms and rest areas ensuring that employees in and the use of personal protective equipment. building an inherently safe enterprise.positions exposed to harmful substances can clean and change clothes in a timely manner.Additionally emergency equipment such as eye wash stations alarm systems emergency At the same time the Group continues to organize
protective gear first aid supplies AEDs and self-service health monitoring devices have occupational health checks and strengthens health
been installed at production sites to improve emergency response capabilities. During the monitoring and management for employees in positions
reporting period no occupational diseases or major safety incidents occurred. with occupational hazards effectively safeguarding the
employees' occupational health.New Employee
Strengthening Pre-Job Three-Level Safety Education
Our Performance
Personnel working in confined spaces
As of the end of the reporting period Sailun Group has maintained continuous operations at seven tire factories that have obtained ISO
45001 Occupational Health and Safety Management System certification.
H ands-On Drills and Qualification Management
Main responsible persons and safety management personnel
Target Category Target 2025 Target Progress
Responsibility Implementation and Dual Prevention Mechanism Development Based on 2024 as the baseline by 2030 During the reporting period the Group's lost
Occupational the Group aims to reduce the lost work work rate per 10000 man-hours decreased
Personnel from External Partners Health & Safety rate per 10000 man-hours by compared to the year 2024 by
I mplement the Principle of "Same Standards Same Training Same Assessment" 50% 27.27%About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 99Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Shared Success Through Collaboration Our Goals
Based on the high-quality development needs of the tire industry Sailun Group continues to promote open collaboration and resource By deepening industry collaboration and university–enterprise cooperation
sharing. We actively participate in industry exchanges and capacity building and support professional development and industry progress we aim to promote industry exchange and knowledge sharing and enhance
through industry cooperation and university–enterprise partnership programs. Focusing on technical exchange talent development and the professional skills and overall capabilities of industry practitioners. We
industry–academia–research collaboration the Group continues to expand cooperation promote knowledge sharing and mutual learning are committed to working with industry associations academic institutions
inject collaborative momentum into sustainable industry development and create shared value for all parties. and business partners to advance technological innovation and talent
development support sustainable industry development and build a
collaborative and mutually beneficial ecosystem.Our Initiatives
Leveraging stronger R&D capabilities and a growing global presence
Sailun Group actively engaged in industry cooperation and exchange.Through motorsports industr y exhibitions and value chain
collaboration we promoted technology application and industrial Sailun Group x Guangdong Rising Sailun Group x Rio Tinto Sailun Group x Vang Tat Gold Mine
coordination and supported the high-quality development of the tire Mining Group
industry.Leveraging stronger R&D capabilities and a growing global presence
Sailun Group actively engaged in industry cooperation and exchange.Through motorsports industr y exhibitions and value chain
collaboration we promoted technology application and industrial
coordination and supported the high-quality development of the tire
industry.Sailun Group X Toyota (China) Sailun Cup Off-Road Challenge Launch of EcoPoint3 Tires in the Thailand
In industry exchange we actively participated in major domestic Market
and international exhibitions including the GAIKINDO Indonesia
International Auto Show (GIIAS) and Autopromotec in Bologna Italy
to strengthen global market engagement and brand influence. We also
deepened value chain collaboration through strategic or long-term
cooperation with partners including Guangdong Rising Mining Group
Rio Tinto and other industrial customers in mining and transportation
supporting resource security and coordinated application across the
value chain.Bologna International Auto Parts and Tire Exhibition GAIKINDO Indonesia International Auto Show (GIIAS) BMW Group Stand at the Munich Motor Show in GermanyAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 100Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Joining the WBCSD Global Network to Deepen
Leading Green and Smart Transformation in the Rubber Industry Through AI-enabled Sustainable Development case Integration with International ESG Governance case
At the 20th China Rubber Annual Conference Yuan Zhongxue Honorary Chairman of In 2025 Sailun Group officially joined the World Business Council
Sailun Group shared insights on the application of AI in the sustainable development for Sustainable Development (WBCSD) becoming the first member
of the rubber and tire industry under the theme of green innovation and intelligent from China's tire industry. Leveraging this milestone Sailun Group
manufacturing. He outlined the potential of AI in tire compound design structural will further align with international sustainability concepts and
optimization intelligent manufacturing and supply chain management and highlighted governance frameworks participate in global collaboration on climate
how data and algorithms can support green material recycling and production efficiency. action resource efficiency and industrial transformation and deepen
Sailun Group's approach offers a practical path for advancing resource efficiency low- cooperation in digital and intelligent transformation green materials
carbon manufacturing and intelligent transformation in the tire industry reflecting the innovation and the circular economy. Through these efforts the
Group's active role in driving technological progress and sustainable development. Group will continue to support the implementation of sustainable
industry solutions and contribute Chinese experience and corporate
strength to global sustainable development.Selected for the COP30 Climate Action Case Collection Setting a New Benchmark for Climate Governance in
the Tire Industry case
During COP30—the 30th meeting of the Conference of the Parties to the United Nations Framework Convention on Climate
Change (UNFCCC)—Sailun Group's case "Climate Action Pathway Under the eco+ Sustainability Strategy" was included in
the 2025 Corporate (Park) Climate Action Case Collection. It was the only case from the tire industry selected reflecting Sailun
Group's leadership in climate governance. Driven by technological innovation the case highlights the Group's progress in green
manufacturing and product upgrading and shows how climate action is embedded into business development. It also demonstrates
the practical role Chinese tire companies can play in climate governance and in supporting China's dual-carbon goals.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 101Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Deepening Strategic Collaboration to Create
Shared Value Through Technology and Partnering with Xiaomi Automotive to Co-Develop High-Performance Tires and Drive Technological Breakthroughs in
Responsibility case the Premium Tire Sector case
Sailun Group continued to deepen its strategic partnership Sailun Group co-developed the PT01 high-performance track tire with
with global mining company Vale. During the reporting Xiaomi EV marking a breakthrough for Chinese brands in the high-
period the two sides held a giant OTR tire technology performance track tire segment. Integrating race-proven technology
seminar in Vale's mining area in Brazil showcasing the product focuses on high grip and precise handling while meeting
advanced products and localized service capabilities. both track and daily driving needs. By bringing advanced motorsports
Their collaboration in low-carbon operations and green technology into consumer applications the collaboration supports the
supply chain practices was also recognized with the intelligent green and premium development of China's automotive
Innovation Model award at the Pudong New Area Industry industry and contributes to more sustainable and smarter electric
Ecology Innovation Competition for Chinese and Foreign mobility.Enterprises in Shanghai. Covering high-performance high-
safety tire solutions and joint efforts to improve efficiency
and reduce emissions the partnership reflects a long-term
commitment to building a safe efficient and sustainable
industrial ecosystem through technological innovation and
shared responsibility.Full Localization in Manufacturing Creating Shared Value with Partners in Indonesia case
Sailun Group successfully held a full-category product launch and
partner conference in Indonesia marking a new stage of coordinated
growth and high-quality development in the local market. The event
showcased a complete product portfolio based on the Indonesia
plant and brought together local government representatives
industry stakeholders and key partners resulting in multiple annual
cooperation agreements on site. By strengthening local operations and
collaboration Sailun Group not only improved service efficiency in the
regional market but also demonstrated its commitment to building a
sustainable future with the local business ecosystem.Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 102Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Sailun Group continued to deepen cooperation with industry partners across multiple fields using motorsports international market engagement and strategic partnerships to drive technology innovation product application
and global brand influence and to support the high-quality development of the tire industry. In international motorsports we participated in events such as the ADAC RAVENOL Nürburgring Langstrecken-Serie the Taklimakan
Rally and the F4 Chinese Championship. These events provided an important platform to validate tire durability grip and handling under extreme conditions showcasing the strength of Chinese tire technology and supporting the
global recognition of Chinese manufacturing on the racing stage.In April 2025 Sailun's PF01 high-performance slick In 2025 Sailun's TERRAMAX RT off-road tire as the In June 2025 the all-Chinese lineup equipped with
tires set a new lap record at the opening round of the official designated tire supported multiple factory Sailun's dedicated racing tires achieved outstanding
F4 Chinese Championship providing valuable data teams in the Taklimakan Rally. With its unique wear- results in the Nürburgring endurance race demonstrating
support for the event and further technology iteration. and tear-resistant compound it helped one of the the competitiveness of China's tire technology under
teams secure the championship. extreme endurance challenges.Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 103Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Our Performance
During the reporting period Sailun Group continued to deepen collaboration and open cooperation across the industry strengthening exchanges and partnerships with international organizations industry partners and
professional institutions and actively participating in industry development and sustainable transformation. These efforts received broad recognition during the reporting period and the Group received multiple awards and
honors related to industry collaboration and sustainable development.Top 20 Innovation Model Award Shanghai
EY Sustainability Awards 2025 – Pudong ESG Innovation Competition
Outstanding Enterprise
China Corporate Carbon Neutrality
Performance List – Green Supply Shanghai Pudong Foreign Investment Enterprise 2025 Best ESG Practice
Chain Management Award Ernst & Young Association / Shanghai Pudong New Area Award for Listed Companies
Domestic Enterprises Association
2025 ESG Practice Case
China Business Network (CBN) / Institute of Shenzhen Value Online Information
Carbon Neutrality Development Shanghai Jiao Technology Co. Ltd
Tong University / Shanghai Environment and
Energy Exchange Brand Work Office of Xinhua
News Agency XinhuanetAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 104Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Philanthropy and Public Welfare Science Education Enters Campuses to Charitable Education Donation Campaign Ignite Scientific Dreams case Supporting Students in Need case
Sailun Group has consistently integrated social responsibility into its
development strategy actively responded to societal concerns and
continuously created shared value. Leveraging its industry advantages Sailun Group partnered with local community schools to To turn the concept of sustainable development into daily actions
and resource endowments the Group adheres to a responsibility- launch the "Tire Lecture Hall" science popularization series that all employees can participate in the Group's headquarters
driven approach guided by social needs. It has steadily carried out at Jinggangshan Road Primary School in Qingdao West in collaboration with Qingdao Fanxing Student Aid Public Service
public welfare and charitable initiatives focused on key areas such Coast New Area. Guided by the mission of "Exploring the Center launched the 'Warm Delivery' donation initiative for
as rural revitalization educational support emergency rescue and Mysteries of Tires and Creating Infinite Possibilities" this children in Gansu." The initiative collected over 200 books and
cultural and sports development. These efforts aim to effectively activity combines lectures interactive sessions and hands-on various practical clothing items. After sorting and categorizing
return development outcomes to society contributing corporate practice to systematically educate students on rubber and tire these donations were directed to schools in the relevant areas.strength to promote social harmony and sustainable development. knowledge. It also vividly demonstrates the scientific appeal This activity not only conveyed the value of charity and goodwill
of cutting-edge technologies such as "EcoPoint3". but also united the team making sustainable development a
collective responsibility for all employees.Our Goals
We are committed to supporting vulnerable groups advancing
sustainable development initiatives and working with partners and
broader society to improve social well-being and help build a more
harmonious and better society.Our Initiatives
Sailun Group has always adhered to the philosophy of giving back to
society. Through diversified public welfare initiatives we actively fulfill
our social responsibilities focusing on improving people's livelihoods Focus on the protection of minors and empower
and supporting education. We are committed to promoting sustainable the growth of adolescents in the community case
social development and harmonious progress.Public Welfare Contributions Sailun Group Headquarters prioritized the protection of minors
as a core concern. Actively collaborating with local communities
The Group actively encourages employees to take part in public welfare and public welfare organizations it implemented targeted
activities including voluntary blood donation and charitable giving to measures such as material donations to empower the healthy
support public causes and people in need. We encourage employees growth of adolescents within the community. This initiative
to integrate social responsibility into their daily actions and respond not only demonstrates the concrete fulfillment of community
to social needs through practical efforts helping foster a caring and responsibilities but also reflects its long-term commitment to
supportive social environment. deep integration with the community and joint development.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 105Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Donated to the 'She Fund' to care for women and
children in difficult circumstances case Supporting Education and Cultivating Talent
We actively promote talent development and career growth by establishing scholarships and supporting college students in entrepreneurship
and employment. Through multi-dimensional educational support the Group promotes industry-academia collaboration and talent ecosystem
During the International Women's Day celebration in March 2025 development while continuously fulfilling its corporate social responsibilities.Sailun Group actively participated in the 'She Fund' charitable
project in Dongying City. The Group donated RMB 50000 to the Education Support Donation Initiative: Advancing Industry-Academia Collaboration and Talent
Municipal Charity Federation to support women and children in Development case
local difficulties facing urgent challenges. This donation has been
incorporated into the annual centralized fundraising campaign.The initiative aims to mobilize social compassion and provide
more accessible and tangible care services for specific groups. It In 2025 Sailun Group made cumulative donations of RMB 160000 through the Qingdao Sailun Charity Foundation and actively
represents a direct action by the Group to genuinely give back to carried out public welfare services such as medical assistance and educational support. Among these RMB 100000 was donated
the community and convey social warmth. to the Qingdao Charity Federation to support educational assistance and rural revitalization initiatives; RMB 60000 was designated
specifically for student activities and career development programs at the Business School of Qingdao University. Through these
initiatives Sailun Group has supported educational public welfare promoted industry-academia cooperation and advanced talent
ecosystem development demonstrating the Group's concrete actions in fulfilling its social responsibilities.The Vietnam factory supported the construction of
the 'Warmth Room' case
Aid to disaster-stricken areas
Sailun Group actively responded to the disaster by launching relief operations promptly providing necessary materials and financial support to
In 2025 the People's Committee of Tay Ninh Province and the Fatherland the affected areas. These efforts helped victims overcome difficulties and resume their normal lives.Front of Tay Ninh Province jointly issued a notice. Given that the existing
housing for households lifted out of poverty in the area is generally aging
and deteriorated posing safety hazards the Provincial Government Deepen local connections and practice multi-dimensional public welfare case
intends to launch the 'Warmth House' construction project. This initiative
aims to rebuild or reinforce houses for eligible families to effectively
safeguard the lives and property of the people while conveying the care
and warmth of the Party and the Government. The project also issues a In Vietnam Sailun Group actively fulfilled its local social responsibilities. In
call for charitable support from the public. 2025 during the 17th Anniversary Celebration of the BMW Car Club Vietnam
the Group responded to local typhoon disasters by raising VND 165 million
As a foreign-invested enterprise rooted in Xining Province the Vietnam through donations and a charity tire auction and organized employees
factory has actively responded to government calls and proactively to deliver relief supplies to affected areas to support emergency response
fulfilled its corporate social responsibility by taking concrete actions to efforts. In addition at the opening of its first Autopro service store Sailun
promote the core values of honoring martyrs and caring for vulnerable donated school supplies to underprivileged students to support community
groups. This donation of 350 million Vietnamese dong to the Xining education. These efforts show that Sailun Group is committed not only to
Provincial Government is designated specifically for the construction business operations but also to supporting local communities through both
of "Warmth Houses". It demonstrates the enterprise's firm support emergency relief and long-term care helping build a warm and responsible
for local development and further enhances brand reputation and brand image.community recognition.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Every Tire Carries a Heart of Compassion: Promoting Sports Charity through
Partnering with Cambodian Dealers to Build Culture and Sports for Shared Progress Professional Events Building a National
a Path of Charity case Sailun Group promotes the integrated development of culture and Fitness Platform case
sports and actively supports cultural communication and sports
development. Through cultural events and sports competitions the
Group showcases urban culture and corporate spirit while contributing
Sailun Group has always been committed to linking corporate to the growth of sports. These efforts also help enrich the cultural In April 2025 Sailun Group hosted the second "Sailun · EcoPoint3
development with social responsibility actively engaging in public
welfare and charity endeavors and spreading warmth and positive vitality and soft power of the city.Cup" Table Tennis Open in Qingdao. The event attracted
nearly 300 players from across China and invited several
energy through tangible actions. former national team players further raising its competitive
In July 2025 Sailun Group together with its Cambodian distributors Double Titles in Bridge Highlight level and influence. With professional organization and broad
initiated a long-term charitable initiative in Cambodia. For every tire Excellence in Mind Sports case public participation the event created a platform for exchange
sold 400 Riels (equivalent to 0.1 USD) will be donated to charity turning between professional athletes and amateur enthusiasts. Online
each purchase into an act of kindness. This heartfelt initiative has been livestream views exceeded 320000 attendances. The event
widely promoted with relevant charity posters displayed in storefronts reflects the Group's commitment to integrated cultural and
along streets making the concept of charity visible and recognized by In 2025 Sailun Group achieved a historic breakthrough in sports development and its support for public fitness and sports
the public. From the preparation of donations to the implementation bridge. Qingdao Sailun Bridge Club came from behind to culture.of public welfare from market development to fulfilling social win its first overall championship in the final of China's top-
responsibility the Group and its Cambodian partners have always stood tier Category A Club League. At the same time the Qingdao
together sharing both honor and challenges. Through cooperation they
have created a strong force working hand in hand towards a common Sailun reserve team won the U26 title in the youth team event
mission. To date the initiative has raised 20000 USD awaiting the right of the National Bridge Championship. These achievements
opportunity for formal donation. This gesture of goodwill not only reflects not only showcases the team's superb skills and fighting
their commitment to charity but also symbolizes the joint efforts of both spirit but also reflects the Group's long-standing support for
parties in giving back to society. the development of intellectual sports and the establishment
of a comprehensive youth training system. It vividly embodies
Looking ahead Sailun Group and its local distributors will continue the corporate culture of "balancing both literature and
to uphold their steadfast determination to progress together. While martial arts."
deepening market penetration and growing together they will continue
to spread warmth through public welfare write responsibility with a
spirit of cooperation and move towards a brighter future filled with
compassion.Our Performance
Sailun Group continued to increase investment in public welfare
education support disaster relief and cultural and sports development.During the reporting period the Group invested a total of RMB 9.3871
million through various public welfare programs. These funds were
mainly delivered through legally compliant charitable organizations
and public welfare platforms to ensure standardized transparent and
effective use.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Appendix I Quantitative Performance Table
Governance Data Environmental Data
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Operating income of the Group RMB 100 million 318.02 367.92 Wastewater39
Business Ethics COD Tonne 98.29 60.34
Number of regular employees participating in training
related to business ethics Person 21077 25128
Ammonia nitrogen Tonne 12.08 7.44
Exhaust Gas
Percentage of employees trained in business ethics % 100 100
Particulate matter Tonne 2.13 2.30
Number of directors trained in business ethics Person 7 7
Sulphur dioxide Tonne 15.38 18.63
Percentage of directors trained in business ethics % 100 100
Nitrogen oxides Tonne 48.38 53.87
Unfair competition leading to litigation or major
administrative penalties Case 0 0 VOCs Tonne 81.1440 78.20
Information Security and Privacy Protection Waste
Number of information security incidents Case 0 0 General solid waste Tonne 70126.15 80858.15
Number of customer privacy disclosure events Case 0 0 Hazardous waste Tonne 382.53 552.94
Number of information security trainings provided to
employees Session 6 8
39 I n accordance with Article 30 of the SSE Guidelines the 2024 statistics for wastewater exhaust gases and waste include
factories listed in the mandatory environmental information disclosure catalog.
40 D uring the reporting period the Group updated its statistical methodology and calculation logic for waste gas emissions. To
ensure consistency in data calculation scope a retrospective adjustment was simultaneously made to the baseline data for
VOCs emissions for the fiscal year 2024.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Indicator Unit 2024 2025 Indicator Unit 2024 2025
Water Resources Utilization41 Percentage of renewable energy use % 3.25 2.00
Total water consumption Tonne 3994254.00 3260121.91 Total renewable energy consumption Tonne of standard coal equivalent 13950.91 9870.11
Total water consumption intensity Tonne/RMB million 125.60 88.61
Direct energy use42 Non-renewable energy consumption
Tonne of standard
coal equivalent 415855.58 483989.39
Natural Gas m3 16210.40 620937.79 Climate change tackling43
Diesel Tonne 1384.93 3098.53 Scope 1 GHG emissions tCO2e 622575.62 1054171.49
Gasoline Tonne 32.61 38.13 Scope 2 GHG emissions (location-based) tCO2e 825303.85 760898.22
Liquefied petroleum gas Tonne 0.79 0.96 Scope 2 GHG emissions (market-based) tCO2e / 758925.98
Self-generated green electricity Megawatt hour 43483.07 44906.60 Total GHG emissions (Scope 1 + Scope 2) (location-
based) tCO2e 1447879.47 1815069.71
Coal Tonne of standard coal equivalent 208112.55 272328.37 Total GHG emissions (Scope 1 + Scope 2) (market-
based) tCO2e / 1813097.47
Biomass Tonne of standard coal equivalent 8606.84 8145.15 GHG emission intensity (Scope 1 + Scope 2) (location-
based) tCO2e/RMB million 45.53 49.33
Indirect Energy Use
GHG emission intensity (Scope 1 + Scope 2) (market-
Purchased electricity Megawatt hour 1039443.27 1076126.69 based) tCO2e/RMB million / 49.28
Purchased steam GJ 2003694.26 2174469.36 Scope 3 GHG emissions tCO2e 4969465.17 6270409.97
Total Energy Consumption
Tonne of standard 41 T he statistical scope of water resources energy and greenhouse gas-related data covers seven operational factories the Direct energy consumption coal equivalent 224149.21 287454.12 Group headquarters and the R&D center.
41 I n 2025 due to the addition of tire manufacturing facilities both domestically and internationally the scope for statistics
Indirect energy consumption Tonne of standard 205657.27 206405.38 on water resources and energy-related data includes operational factories the Group headquarters and the research and coal equivalent development center.
42 I n 2025 to promote the low-carbon transition of the energy structure newly constructed factories selected lower-carbon
Total energy consumption Tonne of standard 429806.49 493859.50 energy sources and adopted natural gas as the direct energy supply for production and operations to reduce carbon coal equivalent emission intensity in the production process; meanwhile the commissioning of new factories increased the consumption of
diesel and coal.Tonne of standard 43
Energy consumption intensity coal equivalent/ 13.51 13.42 In 2025 due to the addition of tire manufacturing facilities both domestically and internationally as well as capital increases
RMB million and mergers and acquisitions involving the East China Intelligent Connected Vehicle Test Field the scope for greenhouse gas
statistics includes in addition to operational factories the Group headquarters and the research and development center
Shenyang Hengtong Energy and the East China Intelligent Connected Vehicle Test Field.About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
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Social Data
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Employee Hiring Employee Training and Development44
Regular employees Person 21077 25128 Total number of trainees Person 21077 25128
Interns Person 260 70 Total training participation Attendance 452655 454242
Number of employees by type of management Percentage of employees trained % 100 100
Total number of management staff Person 601 729 Average training hours per employee Hour/person 42.95 19.04
Number of ordinary employees Person 20476 24399 Staff training and development expenditures RMB 6320403.13 8560638.30
Number of employees by gender Number of skills training sessions conducted Session 5732 4934
Male employees Person 17475 20780 Occupational Health and Safety
Female employees Person 3602 4348 Total hours of employee safety training Hour 282000 164348
Percentage of female employees % 17.09 17.30 Total work-related injury insurance coverage RMB 8334349.58 8638451.54
Number of employees by age group Coverage rate of work-related injury insurance % 100 100
<30 years Person 8964 10794 Coverage rate of employee health and safety risk
assessments % 100 100
30-60 years Person 12080 14303
Employee Rights and Benefits
>60 years Person 33 31
Signing rate of labor contracts % 100 100
Diversified employees
Social security coverage % 100 100
Number of minority employees Person 460 621
Collective contracts coverage % 100 100
Number of newly recruited employees(the number of
jobs absorbed) Person 5465 9886 Safety and Quality of Products and Services
Total employee turnover rate % 29.15 25.26 Number of product recall batches Time 0 0
Employee turnover rate by gender Percentage of product recalls % 0 0
Male employees % 29.77 24.77 Complaint handling rate % 100 100
Female employees % 25.96 27.60 Number of major liability accidents related to product
safety and quality Case 0 0
44 I n the 2025 employee training and development data the statistical scope for the number of trainees average training hours
and number of training sessions has been expanded to include department-level training and above whereas previously it
was limited to section-level training and above.About the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 110Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Customer Service New authorized software copyrights Number 3 2
Customer satisfaction (overseas) % 97.49 97.80 Valid trademarks Number 1126 1184
Customer satisfaction (China) % 98.50 97.32 New trademark applications Number 93 32
R&D Innovation New authorized trademarks Number 116 58
R&D expenditure RMB 10000 101281.40 114738.32 Infringement cases initiated Number 0 0
R&D intensity (R&D/revenue) % 3.18 3.12 Infringement cases received Number 0 0
Involvement in developing and distributing advanced
materials RMB 10000 2436.00 2532.00 Responsible Supply Chain Management
Involvement in development and distribution of Total suppliers Number 810 960
reused products or products using recycled waste RMB 10000 6086.73 7320.28 Domestic suppliers Number 705 864
Certified high-tech enterprises Number 3 4 Overseas suppliers Number 105 96
National-level R&D platforms Number 4 4
Percentage of domestic suppliers % 87.04 90.00
R&D personnel headcount Person 2764 3078
Percentage of overseas suppliers % 12.96 10.00
R&D personnel ratio % 13.11 12.25
Percentage of suppliers with signed code of conduct % 68.89 85.52
Total valid patents Number 2008 2441
Percentage of suppliers with contracts containing % 68.89 85.52
Invention patents Number 177 212 environmental labor and human rights clauses
Utility model patents Number 1086 1314 Number of suppliers that have been assessed by CSR
(e.g. questionnaires) Number 15 30
Design patents Number 745 915
Procurement Personnel Training
Valid software copyrights Number 116 118 Percentage of procurement personnel participating in
New patent applications Number 577 528 sustainable procurement-related training
%100100
New invention patent applications Number 99 134 Supplier Certification
New utility model patent applications Number 253 230 Percentage of suppliers certified to ISO 9001 % 53.46 54.69
New design patent applications Number 225 164 Percentage of suppliers certified to ISO 14001 % 35.68 36.15
New software copyright applications Number 3 2 Percentage of suppliers certified to ISO 45001 % 29.88 30.52
New authorized patents Number 315 463 Percentage of suppliers certified to IATF 16949 % 14.94 17.19
New authorized invention patents Number 43 35 Rural Revitalization & Social Contribution
New authorized utility model patents Number 156 232
Total investment in rural revitalization and social
donations RMB 10000 434.06 938.71 New authorized design patents Number 116 196About the Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our
About Special
Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 111Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix II SSE Guidelines Content Index
Dimension Serial Number Issues Location Dimension Serial Number Issues Location
1 Article 4 About the Report 16 Climate response Climate Response
2 Article 5 Sustainable Development Governance 17 Pollutant discharge Environmental Management
Report Note 18 Waste disposal Environmental Management
3 Article 6 Appendix I: Quantitative Performance 19 Ecosystem and biodiversity protection Green OperationsTable
General Provisions Environment4 Article 7 Not Applicable 20 Environmental compliance management Environmental Management
5 Article 8 Climate Response 21 Energy utilization Climate Response
6 Article 9 Sustainable Development Governance 22 Water resources utilization Green Operations
Quality and Safety
7 Article 10 23 Circular economy Green Operations
Climate Response 24 Rural Revitalization45 Philanthropy and Public Welfare
Quality and Safety
8 Article 11 25 Social contributions Philanthropy and Public Welfare
Climate Response 26 Innovation R&D Innovation
9 Article 12 Sustainable Development Governance
27 Ethics of science and technology Not ApplicableArticle 13 Articles XIV through XVII.
Sustainable Development Governance 28 Supply chain security Supply Chain Management
10 Article 14
Climate Response 29 Equal treatment of small and medium-sized enterprises Supply Chain Management
Corporate Governance Social
Sustainability 11 Article 15 Quality and Safety 30 Product and service safety and
Disclosure quality
Quality and Safety
Framework Climate Response
31 Data security and customer 12 Article 16 Climate Response privacy protection Corporate Governance
13 Article 17 Not Applicable Inclusive Workplace
Corporate Governance Talent Development
14 Article 18 32 Employees
Climate Response Employee Care
Quality and Safety Occupational Health and Safety
15 Article 19 Dedicated Service Corporate Governance33 Due diligence
Supply Chain Management Supply Chain Management
Governance Related
to Sustainable 34 Stakeholder engagement Sustainable Development Governance
Development 35 Anti-commercial bribery and anti-corruption Corporate Governance
36 Fair competition Corporate Governance
45 R ural revitalization is not classified as a material issue.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 112Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix III Contributing to UN SDGs
UN SDGs Specific contributions Location
Inclusive Workplace
We advocate a human-centric management philosophy strictly complies with legal and regulatory requirements promotes freedom of employment manages working hours reasonably and provides Talent Development
employees with competitive compensation and benefits packages that comply with labor laws. Employee Care
Fostering Shared Success
Inclusive Workplace
We have formulated and implemented a competitive compensation scheme to attract motivate and retain talent. The compensation structure consists of base salary combined with short-term and
long-term incentive plans. Talent Development
Employee Care
We rubber place strong emphasis on effectively safeguarding employee interests. The Group conducts regular testing of occupational hazard factors at work sites provides hazard notifications Employee Care
implements preventive and control measures and carries out periodic health examinations for employees in positions exposed to occupational hazards. It also establishes and maintains health Occupational Health and
surveillance archives for all levels of positions ensuring that occupational health and safety management remains controllable and under control. Safety
We have established a comprehensive management system covering multiple dimensions including employee career development curriculum system construction instructor management and
training operation management. The Group has systematically standardized the education and training requirements for employees formulated employee education and training plans developed Talent Development
targeted training materials built an internal instructor team and formed an education and training system that aligns with the Group's actual development needs.We have established policies and procedures including the 'Global Human Rights Policy' and the 'Employee Handbook' to ensure that employees are treated without discrimination based on race
ethnicity or social origin social status birth religion disability gender sexual orientation family responsibilities marital status membership in a group political opinion age or other factors. Inclusive Workplace
We continue to manage water conservation by optimizing production processes improving quality and efficiency and upgrading equipment to control total water consumption. The Group refines
water usage methods and implements precise management of process water volumes. Additionally a recycled water mechanism has been established for production stages with lower water quality Green Operations
requirements to enhance the recycling rate of water resources.We actively respond to the national call for the "Dual Carbon" policy by adopting photovoltaic power generation to reduce consumption of non-renewable energy resources and gradually increasing
the proportion of photovoltaic power generation. Climate Response
Based on local regulations market standards and the Group's operational status we have designed an incentive-based compensation policy and established a fair performance bonus system. For
outstanding and core employees the Group further provides incentives such as bonus payments and equity grants to ensure a dignified work and life for all staff. Talent DevelopmentMessage ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 113Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
UN SDGs Specific contributions Location
As of December 31 2025 we held a total of 2441 authorized patents globally. R&D Innovation
We adhere to a human-centric employment management system complie with the laws and regulations of its operating locations and promotes employment rates in accordance with the principles of
openness fairness and impartiality. The Group respects every employee and does not provide different considerations in the hiring and promotion processes based on race skin color religion gender Inclusive Workplace
disability or other factors.We ensure that all waste gases generated during the production process meet emission standards and eliminates all forms of fugitive emissions. Simultaneously the Group places high emphasis on R&D Innovation
waste management. It has established and improved management regulations such as Waste Gas Management RegulationsWastewater Management Regulations Industrial Solid Waste Management
Regulations. On the basis of legally disposing and recycling we strive to minimize the environmental impact to the greatest extent possible. Climate Response
Supply Chain
Management
To enhance supply chain competitiveness while ensuring supply security reducing costs improving efficiency and controlling risks we established the Sustainable Procurement Policy in accordance
with sustainable management principles. This policy requires suppliers to not only provide products and services that meet our requirements but also fulfill their social responsibilities. Environmental Management
Climate Response
To standardize greenhouse gas (GHG) information management and effectively manage GHG tracking and reduction performance we have established a carbon inventory implementation plan for
each factory. The Group expects to complete carbon inventory work at all production bases by 2025 after which an annual GHG inventory ledger and report will be produced. Climate Response
Not applicable Not applicable
We have strengthened its biodiversity social responsibility by committing to integrate biodiversity into the Group's decision-making processes and operations and strives to apply biodiversity policies
across all production bases and suppliers at all levels. Green Operations
We adhere to the principles of integrity and lawful operation. It has established and improved a compliance system in areas such as clean business operations fair competition labor protection Corporate Governance
environmental protection information security intellectual property protection and consumer protection to ensure that the Group's commercial activities are standardized. Responsible Marketing
Sustainable Development
We have always adhered to the business philosophy of 'long-term cooperation and mutual benefit' focused on the interests of multiple stakeholders integrated advantageous resources and built an Governance
ecosystem for mutual benefit leading the rubber tire industry toward healthy development. Collaborating for Mutual
SuccessAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 114Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix IV GRI Content Index
Statement of Use Sailun Group has reported with reference to the GRI Standards from January 1 2025 GRI Standards Disclosure Locationto December 31 2025.
2-16 Communication on Key Concerns Sustainable Development
GRI 1 Applied GRl1: Foundation 2021 Governance
2-17 Shared Knowledge of the Highest Governance Body Sustainable Development Governance
GRI Standards Disclosure Location
2-18 Performance Evaluation of the Highest Governance Body Sustainable Development Governance
2-1 Detailed Organizational Information About Us
2-19 Compensation Talent Development
About the Report
2-2 Entities Included in the Organization's Sustainability Report
About Us 2-20 Procedures for Determining Compensation Talent Development
2-3 Reporting Period Reporting Frequency and Contact Person About the Report 2-21 Proportion of Total Annual Compensation Information is incomplete; omitted.
2-4 Restatement of Information About the Report
2-22 Statement on Sustainable Development Strategy Message from Management
2-5 External Assurance Appendix VI Independent Assurance Statement 2-23 Policy Commitments Corporate Governance
2-6 Activities Value Chain and Other Business Relationships About Us GRI 2: General 2-24 Integration of Policy Commitments Corporate Governance
Disclosures (2021)
Corporate Governance
2-7 Employees Appendix I: Quantitative Performance Table 2-25 Procedures for Remediating Negative Impacts Dedicated Service
GRI 2: General
Disclosures (2021) Inclusive Workplace
2-9 Governance Structure and Composition Appendix I: Quantitative Performance Table
2-10 Selection and Nomination of the Highest Governance Body Corporate Governance Corporate Governance
Mechanisms for Seeking Advice and Raising Concerns Dedicated Service
2-11 Chair of the highest governance body Corporate Governance Inclusive Workplace
2-12 Oversight Role of the Highest Governance Body in Managing
Impacts Corporate Governance
2-27 Compliance with Laws and Regulations Appendix I: Quantitative Performance Table
Authorization of responsibility for management impact (2-13) Sustainable Development Governance 2-28 Membership in the Association Awards and Honors
2-14 Role of the Highest Governance Body in the Sustainability Sustainable Development Sustainable Development
Report Governance 2-29 Methods for Stakeholder Engagement Governance
2-15 Conflict of Interest Corporate Governance 2-30 Collective Bargaining Agreement Employee CareAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 115Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
GRI Standards Disclosure Location GRI Standards Disclosure Location
3-1 Process for Identifying Material Topics Sustainable Development Governance 302-3 Energy Intensity
Appendix I Quantitative
Performance Table
GRI 3: Material GRI 302: Energy
Topics (2021) 3-2 List of Material Topics
Sustainable Development
Governance (2016) 302-4 Reduction of Energy Consumption Climate Response
Sustainable Development 302-5 Decrease in energy requirements of products and services Climate Response3-3 Management of Material Issues Governance
303-1 Interactions between the Organization and Water as a
304-1 Operating points owned leased or managed by the Shared Resource Green Operations
organization in areas rich in biodiversity located within or Green Operations
adjacent to protected areas
GRI 304: Biodiversity 303-2 Management of Impacts Related to Drainage Environmental ManagementGRI 303: Water and
(2024) 304-2 Activities Products and Services with Significant Impacts on
Biodiversity Green Operations Effluents (2018) 303-3 Water Withdrawal Green Operations
304-3 Protected or Restored Habitats Green Operations 303-4 Drainage Green Operations
201-1 Directly Generated and Distributed Economic Value Appendix I Quantitative 303-5 Water Consumption Green OperationsPerformance Table
305-1 Direct (Scope 1) Greenhouse Gas Emissions Climate Response
201-2 Financial Impacts of Climate Change and Other Risks and
Opportunities Climate Response 305-2 Indirect (Scope 2) Greenhouse Gas Emissions Climate Response
201-3 Obligations under Defined Benefit Plans and Other
GRI 201: Economic Retirement Plans Employee Care 305-3 Other Indirect (Scope 3) Greenhouse Gas Emissions Climate Response
Performance (2016)
The Group has already 305-4 Greenhouse Gas Emission Intensity Climate Response
disclosed the relevant GRI 305: Emissions
(2016)
201-4 Government Financial Subsidies information in its annual 305-5 Greenhouse Gas Emission Reduction (Biomass Carbon report; therefore such Reduction) Climate Response
information will not be
repeated in this report. 305-6 Emissions of Ozone Depleting Substances (ODS) Not yet calculated
GRI 203: Indirect 203-1 Infrastructure Investment and Supportive Services
Philanthropy and Public
Welfare 305-7 Nitrogen Oxides (NOx) Sulfur Oxides (SOx) and Other Appendix I Quantitative
Economic Impacts Significant Air Emissions Performance Table
(2016) 203-2 Significant Indirect Economic Impacts Philanthropy and Public Welfare 306-1 Generation of Waste and Significant Impacts Related to Environmental Management
205-2 Communication and Training on Anti-Corruption Policies Waste
GRI 205: Anti- and Procedures Corporate Governance GRI 306: Waste
corruption (2016) (2020) 306-2 Management of Significant Impacts Related to Waste Environmental Management
205-3 Confirmed Instances of Corruption and Actions Taken Corporate Governance
306-3 Generated Waste Appendix I Quantitative GRI 301: Materials Weight or volume of materials used in 301-1 Green Operations Performance Table
(2016) 301-2 Recycled Input Materials Used Green Operations
Appendix I: Quantitative
302-1 Energy consumption within the organization Appendix I: Quantitative
306-4 Waste Transferred from Disposal Performance Table
GRI 302: Energy Performance Table GRI 306: Waste
(2016)(2020)
302-2 Energy consumption outside the organization Appendix I: Quantitative 306-5 Waste Disposed
Appendix I Quantitative
Performance Table Performance TableAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 116Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
GRI Standards Disclosure Location GRI Standards Disclosure Location
New Suppliers Selected Based on the Environmental Assessment
GRI 308: Supplier Dimension Supply Chain Management 404-2 Employee Skills Enhancement Program and Transition Assistance Program Talent DevelopmentEnvironmental GRI 404: Training
Assessment (2016) 308-2 Negative Environmental Impacts of the Supply Chain and Supply Chain Management and Education Actions Taken (2016) Percentage of employees who regularly undergo performance and
401-1 New Employee Hiring Rate and Employee Turnover Rate Appendix I Quantitative career development assessments
Talent Development
Performance Table
GRI 401: 401-2 Benefits provided to full-time employees (excluding 405-1 Diversity of the Board and Employees Appendix I: Quantitative
Employment (2016) temporary or part-time employees) Employee Care GRI 405: Diversity Performance Table
and Equal
Opportunity (2016)
401-3 Parental Leave Employee Care 405-2 Policies and Plans for Diversity and Equal Opportunity Inclusive Workplace
403-1 Occupational Health and Safety Management System Occupational Health and Safety GRI 406: Non-
discrimination 406-1 Discrimination Incidents and Corrective Actions Taken Inclusive Workplace
403-2 Hazard Identification Risk Assessment and Accident Occupational Health and (2016)
Investigation Safety
GRI 408: Child Labor Operational sites and suppliers with significant risk of child labor Supply Chain Management
403-3 Occupational Health Services Occupational Health and Safety (2016) incidents Inclusive Workplace
403-4 Occupational Health and Safety Management: Workers' Occupational Health and GRI 409: Forced or
GRI 403: Participation Consultation and Communication Safety Compulsory Labour 409-1 Operating points and suppliers with significant risk of
Supply Chain Management
Occupational Health (2016) forced or compulsory labor incidents Inclusive Workplace
and Safety (2018) 403-5 Occupational Health and Safety Training for Workers Occupational Health and Safety
GRI 413: Local Operating sites with local community engagement impact
403-6 Promote Worker Health Occupational Health and Communities (2016) assessment and development plans
Green Operations
Safety
403-7 Prevention and mitigation of occupational health and Occupational Health and GRI 414: Social
safety impacts directly related to business relationships Safety Assessment of New suppliers selected using the social evaluation dimension Supply Chain ManagementSuppliers (2016)
403-8 Workers covered by the occupational health and safety Occupational Health and
management system Safety GRI 416: Customer
Health and Safety 416-1 Assess the health and safety impacts of product categories and service categories Quality and Safety
403-9 Work-related Injury Occupational Health and
(2016)
GRI 403: Safety
Occupational Health GRI 417: Marketing
and Labelling (2016) 417-1 Requirements for Service Information and Labels Responsible Marketingand Safety (2018) 403-10 Work-related Health Issues Occupational Health and Safety
Corporate Governance
GRI 404: Training GRI 418: Customer 418-1 Confirmed complaints regarding infringement of customer 404-1 Average number of hours of training provided per employee Appendix I Quantitative Privacy (2016) privacy and loss of customer data Appendix I Quantitative and Education per year Performance Table Performance Table(2016)Message
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special
ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 117Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix V Main Subsidiaries and Abbreviations
The names of subsidiaries and their abbreviations appearing in this report are compared as follows:
Name of Subsidiary Abbreviation Name of Subsidiary Abbreviation
Sailun Group Co. Ltd.46 Qingdao Factory SL&TD TIRE MANUFACTURING CO.LTD. Mexico Factory
Salun (Dongying) Tire Co. Ltd. Dongying Factory Shams El sherouk Tyre Co. Ltd Egypt Factory
Salun (Shenyang) Tire Co. Ltd. Shenyang Factory Sailun Xin He Ping(Shenyang) Tire Co. Ltd Xin He Ping Factory
Zhu Cheng Yong An Rubber Technology Co. Ltd. Weifang Factory Qigndao Sailun Tire Co.Ltd Dongjiakou Factory
Salun (Vietnam) Co. Ltd. Vietnam Factory Shenyang Heng Tong Energy Co. Ltd. Heng Tong Energy
Actr Co. Ltd. ACTR Factory East China (Dongying) Intelligent Connected Vehicle Proving Ground Co. Ltd. East China Intelligent Connected Vehicle Test Site
Cart Tire Co. Ltd. Cambodia Factory Sailun Tire North America Inc. Sailun North America
PT SAILUN MANUFACTURING INDONESIA Indonesia Factory Sailun (Kazakhstan) Tire Co. Ltd. Sailun Kazakhstan
46 A s used in this report the terms "Sailun Group" "the Group" and "we" all refer to Sailun Group Co. Ltd. at the group level. When the "Qingdao Factory" is mentioned separately in this report it specifically refers to the factory of Sailun Group Co. Ltd. located in
the Qingdao region.Message ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY:
Sailun Group Co. Ltd. ｜ 2025 Sustainability Report About the from Our About Special Report Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 118Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix VI Independent Assurance StatementAbout the Message About Special ECO-GOVERNANCE： ECO-PLANET: ECO-PRODUCTION: ECO-HARMONY: Sailun Group Co. Ltd. ｜ 2025 Sustainability Report Report from Our Us Feature Strengthening the Leading the Low- Delivering Excellence in Fostering Organizational Appendix 119Chairwoman Foundation of Compliance Carbon Transition Intelligent Manufacturing Cohesion
Appendix VII Feedback Form
Dear readers
Thank you very much for your attention and support to the sustainable development of Sailun Group. In order to provide you with more professional and valuable information on the environment society and corporate governance
and further enhance the quality of the sustainability report of Sailun Group we welcome you to answer the relevant questions in the reader feedback form.Which stakeholder group do you belong to 5、Do you have any further suggestions for our future social responsibility work and report preparation
〇 Government and regulatory authorities 〇 Customers 〇 Employees
〇 Suppliers 〇 Research institutions 〇 Other
Your evaluation of the report:
1、What is your overall evaluation of this report
○ Very good ○ Good ○ Average ○ Poor ○ Very poor
2、Do you think the information data and indicators disclosed in this report are clear accurate and complete
○ Very good ○ Good ○ Average ○ Poor ○ Very poor
Our contact information:
3、What do you think about the report's layout design and presentation style
Address: Rubber and Plastic New Material Building No. 43 Zhengzhou Road Shibei District Qingdao City
○ Very good ○ Good ○ Average ○ Poor ○ Very poor Shandong Province China
Phone: +86 4006608329
4、In which of the following aspects do you think this report can be improved Email: kcxfzzlglbgs@sailuntire.com
〇 Report theme 〇 Design layout 〇 Content logic 〇 Language expression Website: www.sailungroup.comSAILUN GROUP CO. LTD.Address: Rubber and Plastic New Material Building No. 43 Zhengzhou Road Shibei District Qingdao City Shandong Province China
Phone: +86 4006608329
Email: kcxfzzlglbgs@sailuntire.com
Website: www.sailungroup.com
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