CONTENTS

01020304

About the Report 03 ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Message from Our Chairwoman 04 Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of

About Us 05 Responsible Leadership Operational Excellence Sustainable Growth Diversity and Inclusion

Sustainable Development 12 Product Quality and Safety 25 Environmental Management 45 Inclusive Workplace 60

Governance R&D and Innovation 32 Green Operations 49 Talent Development 63

Appendix I Quantitative Performance Table 78 Corporate Governance 17 Commitment to Service 37 Climate Response 52 Employee Care 67

Appendix II SSE Guidelines Content Index 81 Excellence Occupational Health and Safety 70

Appendix III Contributing to UN SDGs 82 Supply Chain Management 40 Harmonious Coexistence 73

Appendix IV GRI Content Index 84

Appendix V Main Subsidiaries and Abbreviations 87

Appendix VI Independent Assurance Statement 88

Appendix VII Feedback Form 89Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY: About the

Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 03Report Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

About the Report

This report is the 12th 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).Terminology and Definitions External Assurance Contact Information

For ease of expression the terms "Sailun Group" "the Group" and "we" as This report has undergone independent third-party assurance. The as- The report is available in both Chinese and English print and electronic

used in this report all refer to Sailun Group Co. Ltd. and its subsidiaries1. surance statement can be found in Appendix VI: Independent Assurance versions. The electronic version can be accessed or downloaded online

The names and abbreviations of the subsidiaries mentioned in this report Statement. from the official website of Sailun Group at www.sailungroup.com. In

are detailed in Appendix V. case of any minor discrepancies between the Chinese and English

versions the Chinese version shall prevail.Report Time Preparation Basis For any questions or suggestions regarding the content of this report

The report covers the period from January 1 to December 31 2024 This report has been prepared primarily in accordance with the please feel free to contact us by phone or email:

(hereinafter referred to as the "reporting period"). The report is published Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Tel.: +86 4006608329

annually in line with the financial reports. To ensure the completeness of Listed Companies — Sustainability Report (Trial) (hereinafter referred to E-mail: kcxfzzlglbgs@sailuntire.com

the report certain content has been retrospectively included or extended as "SSE Guidelines") with reference to the United Nations Sustainable Address: Rubber and Plastic New Materials Building No. 43 Zhengzhou

as necessary. Development Goals (UN SDGs) the Global Reporting Initiative (GRI) Road Shibei District Qingdao City Shandong Province China

Standards and the Corporate Sustainability Disclosure Standards—

Report Scope Basic Standards (Trial) issued by the Ministry of Finance of China.The report covers Sailun Group and its subsidiaries consistent with the

scope of the Group's consolidated financial reporting.Report Data

The data and case studies presented in this report are sourced

exclusively from Sailun Group's official documents statistical reports and

media publications containing no false records misleading statements

or material omissions. The Board of Directors has reviewed and

approved this report assuming full responsibility for the authenticity

accuracy and completeness of its content. Unless otherwise specified

all monetary values in this report are denominated in Renminbi (RMB).

1 As 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.About the ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY: Message from Our

Report About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 04Chairwoman Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Message from Our Chairwoman

In 2024 amid the complexities of the global economy and the accelerating changes ECO-GOVERNANCE: Practicing Sustainability Throughout the Enterprise Life Cycle ECO-PLANET: Advancing Green Transformation to Protect the Future of Our Planet

not seen in a century Sailun Group rose to the challenge with resolve and innovation.Staying true to its original mission of "making great tires" we successfully entered In 2024 we positioned "eco-governance" as a core pillar of Sailun Group's sustainable development As a pioneer in the low-carbon transformation of the global tire industry Sailun Group has adopted

the ranks of the world's top ten tire companies representing Chinese tire brands and strategy. We fully integrated key sustainability issues into our strategic decision-making processes "eco-planet" as a strategic compass establishing a full life cycle green management system

shining on the global stage. and anchored our development direction through top-level planning establishing a governance covering R&D manufacturing and services. In 2024 we made solid progress in our environmental structure with clearly defined roles and responsibilities. We implemented a comprehensive closed- initiatives: all seven of our operational factories obtained ISO 14001 and ISO 50001 certifications

Throughout this journey we have remained driven by sci-tech innovation delivering loop management process encompassing risk identification strategy formulation implementation clean energy usage reached a record high and all four of our domestic factories were designated

exceptional products and services to customers worldwide. Guided by our core calibration and performance evaluation and tightly linked ESG performance with senior as green factories. Altogether the Group achieved an annual carbon reduction of 208600 tonnes.corporate values of "trust and respect" we operate with care and treat our employees management's compensation assessments. This "key minority" accountability mechanism has Through high-quality efficient and intelligent production models we continue to advance resource

with sincerity. We actively fulfill our corporate responsibility through concrete actions significantly enhanced governance efficiency. conservation and lower our carbon footprint—actively contributing to the improvement of the

that benefit society. Meanwhile we continue to push forward green technology At the same time we established an all-encompassing management system that covers business global ecological environment.through iterative upgrades and key breakthroughs leading the industry's transition to ethics data security and compliance risk control. Through regular company-wide business ethics In response to China's "dual carbon" strategy 2024 marked a year of significant reductions in

green and low-carbon development. In 2024 our ESG ratings saw steady improvement training and compliance drills we have fortified a clean and transparent operating environment. energy consumption and carbon emissions across our PCR TBR and OTR tire lines. With a

demonstrating the power of Chinese enterprises in sustainable development with the These initiatives ensure that all employees embed sustainability principles into their decision- target of reducing energy consumption and carbon emissions per tire product by 30% by 2030

commitment and leadership expected of an industry pioneer. making. By institutionalizing our original mission we continue to elevate the professionalism and compared to 2022 we are not only making a solemn commitment to global sustainability but also

As the global green wave gains momentum we have embraced our role as a proactive effectiveness of our sustainability governance. demonstrating the tangible actions of a Chinese enterprise in protecting the planet and promoting

advocate of sustainability in the global tire industry. This year we officially launched ECO-PRODUCTION: Innovating Green Technology to Empower Industry-wide Sustainability harmony between humanity and nature.the "eco+" sustainable development strategy structured around four strategic pillars:

"eco-planet eco-harmony eco-production and eco-governance." With a long-term Rooted in Qingdao University of Science and Technology a leading institution renowned for its

ECO-HARMONY: Putting People First and Embracing Social Responsibility

perspective we are steadfast in promoting the integration of commercial and social deep expertise in rubber technology Sailun Group has inherited a robust culture of innovation. As the humanistic core of the "eco+" strategy "eco-harmony" is deeply rooted in Sailun Group's

value as we move forward confidently on the path of sustainability. For years we have remained committed to fundamental research adopting a forward-looking people-oriented values of "trust and respect". Our commitment to social responsibility begins

approach to the development of green tire technologies. Guided by a value-driven philosophy we with genuine care for our employees and efforts to empower their growth. In 2024 we continued

are at the forefront of sustainability progress in the rubber and tire industry. refining our talent development strategy launched a project to strengthen organizational

Innovating product value: We focus on both green low-carbon innovation and performance capabilities and conducted a comprehensive talent review. We provided clear career development

breakthroughs. Through continuous exploration of new technologies and processes we launched paths and built a holistic multi-level training and development platform to nurture develop and

the industry-transforming EcoPoint3 tire series. By optimizing the formulation of sustainable empower every employee to reach their full potential.materials we achieved 75% sustainable content in passenger car radial (PCR) tires and 80% in truck Guided by the principle that "Sailun people's personal concerns are the company's top priority"

and bus radial (TBR) tires offering green mobility solutions that enable users to embrace low- and that "we work hard for a better life" we protect the rights of every employee continuously

carbon travel. improve our compensation and benefits system and care for both their work and personal well-

Reinforcing quality value: We uphold quality as the foundation of our enterprise infusing our being. We are committed to building a diverse and inclusive workplace where everyone shares

mission of "making great tires" into every step of the production process. In 2024 with a goal of in the fruits of corporate growth."zero recalls" we strengthened our life cycle quality control system. All seven operating factories As the first Chinese tire company to expand internationally Sailun Group actively promotes a

attained 100% ISO 9001 certification and quality training covered 100% of employees. Our globalization strategy. On our journey outward we contribute to local economic development

unwavering commitment to quality safeguards the safety and reliability of every journey. and job creation while embedding our values of trust and respect into every overseas market.Expanding service value: Through our proprietary Eco-Rubber Cloud industrial internet platform We provide equal opportunities to employees of all nationalities races and genders. By exporting

we have broken down data silos across the value chain. From R&D to customer service we advanced production management practices we are sharing our vision of green development

have built an intelligent and collaborative ecosystem that continuously enhances supply chain worldwide and setting a new benchmark for Chinese enterprises going global with sustainability at

responsiveness delivering services that are faster smarter and more precise. their core.Enhancing brand value: In 2024 we became the first Chinese tire brand certified by the Fédération We remain deeply committed to public welfare taking action in areas such as rural revitalization

Internationale de l'Automobile (FIA) entering the ranks of top-tier international motorsport tire education support and disaster relief. In 2024 we donated RMB 4.34 million to various sectors of

suppliers. Our brand influence and reputation continue to grow globally. We actively participate society. Through systematic and long-term philanthropic initiatives we fulfill our corporate social

in industry collaborations and showcase our green manufacturing and low-carbon products on responsibility and foster the integrated development of social and business value.international stages such as The Tire Cologne in Germany highlighting Sailun Group's strength and We firmly believe that a better tomorrow begins with sustainable action today. Humanity's pursuit

determination in advancing sustainability in the global tire industry. of a better life and quality mobility is endless. It is this aspiration that drives Sailun Group to keep

Today Sailun tires are sold in more than 180 countries and regions and our EcoPoint3 technology exploring innovating and advancing. Guided by our vision to become a globally influential tire Chairwoman of

has become a benchmark in the industry's green transformation. Remaining steadfast in our company we will continue to integrate the "eco+" strategy into our development path. We aim Sailun Group mission of "making great tires" and guided by a value-driven approach we are redefining tires— to imbue technological innovation with compassion and a sense of purpose taking bold steps

Liu Yanhua not only as core components of transportation but as essential enablers of road safety green

in fulfilling our corporate social responsibilities. Together with our value chain partners we are

innovation and global sustainability. committed to building a low-carbon sustainable future—one that enables safer greener and smarter mobility and a more efficient harmonious society.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 05Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

About Us

Corporate Profile

Sailun Group established in 2002 and listed on the Shanghai Stock

Exchange in 2011 (Stock Code: 601058) was the first privately-owned

tire manufacturer in China to be listed on the A-share market. Over the

past two decades we have grown into a global enterprise integrating

tire research and development manufacturing sales and services.Currently we operate seven intelligent tire manufacturing factories

in Qingdao Dongying Shenyang and Weifang in China as well as in North

Europe America

Vietnam and Cambodia. We are also advancing the construction of new

intelligent tire factories in Mexico Indonesia and Dongjiakou (Qingdao). Europe R&D Center

In addition we have established four major R&D centers worldwide North America R&D CenterAsia

and our products are sold in more than 180 countries and regions. In

Dongying Factory

the 2024 Global Tire Report Top 75 ranking released by Tire Business Sailun China Headquarters

Shenyang Factory Mexico Factory (Under Construction)we ranked 10th in terms of sales revenue. In the World's Most Valuable

Tire Brands 2024 list released by Brand Finance our brand value ranked Weifang Factory Qingdao Dongjiakou Factory (Under Construction)

11th worldwide. Qingdao Factory Qingdao R&D Center

Cambodia Factory Vietnam R&D Center

Sailun Group follows an innovation-driven development strategy Vietnam ACTR Factory Vietnam Factory

and has launched the world's first operational industrial internet Africa

platform for the rubber tire industry—Eco-Rubber Cloud—achieving Indonesia Factory (Under Construction)

integrated platform-based and diversified business operations. We South

have developed three core proprietary technical systems for Passenger America

Car Radial Tires (PCR) Truck and Bus Radial Tires (TBR) and Off-

The-Road Tires (OTR). We have pioneered the use of the world's first

chemically refined rubber material to create a new generation of green Oceania

tires—EcoPoint3. These tires reduce rolling resistance while improving

wet grip and wear resistance successfully breaking the long-standing

"magic triangle" that has challenged the tire industry for decades. This

advancement has made driving safer more energy-efficient and more

comfortable and is recognized as the fourth milestone innovation

in the global rubber tire industry. Moreover we have invested in the

construction of an intelligent and connected vehicle test track in East

China providing an advanced testing and verification platform for

the automotive industry. This facility not only supports the efficient

transition of intelligent connected vehicle technologies from R&D to R&D Center Factory

market application but also serves as a high-quality platform for cross-

sector collaboration and technology sharing. Approval number: GS (2016) 2945 supervised by the Ministry of Natural ResourcesAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 06Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Our Brands

Mission and Vision

Become a global influential tire company

Mission Make great tires Sailun's Code of Conduct

A lign with the mission and have clear E ngage in continuous learning

goals Strive for continuous improvement

Core Values Trust and respect C reate customer value and innovation

C omplete tasks within the expected P ossess a sense of the bigger picture

timeframe B e straightforward and maintain

Have the courage to take transparency in communication and

People-Oriented Value employee's personal well-being as a responsibility operations

Concept top priorityAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 07Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Awards and Honors

ESG Rating Performance

Received a BB Received a B rating for "Climate Awarded the Silver Medal Rated A by the

Rating from MSCI Change" and a B rating for by EcoVadis Wind ESG Rating

"Water Security"

Sustainability Commitments

Joined the United Nations Joined the Global Platform for Joined the Science Based Joined the China Carbon

Global Compact (UNGC) Sustainable Natural Rubber Targets initiative (SBTi) Neutrality Action Alliance

(GPSNR) (CCNAA)About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 08Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Governance Environment

Best Practice in Board Outstanding Practice Case in Board Leading Enterprise in China's Top 500 Manufacturing

Enterprises (2024) Governance for Listed

Office Management for Listed Industrial Carbon Peaking in Climate Lighthouse Pilot

Companies (2024) Companies (2024) China (2023) Award (2024)

China Enterprise Confederation China Association for China Association for China Federation of Industrial Shanghai Climate Week

China Enterprise Directors Association Public Companies Public Companies Economics

Outstanding Practice Case in Green Supply Chain Outstanding Practice Case in Provincial Green Factory:

Corporate Culture Building for Management Enterprise: Annual Results Briefing for Listed A-Level Rating in Information Dongying Factory (2024)

Listed Companies (2024) Companies (2024) Disclosure

Qingdao Factory (2024)

China Association for China Association for Public Shanghai Stock Exchange Ministry of Industry and Information Department of Industry and

Public Companies Companies Technology of the People's Republic of Information Technology of Shandong

China Province

Best ESG Information Global Sustainable Development

Disclosure Award at the 20th Award (2024 Phoenix Star Best Energy Efficiency "Leader" in Key Provincial Energy Efficiency

New Fortune Awards Listed Companies) Industries (2023) "Leader" in Key Industries (2024)

New Fortune Phoenix TV Ifeng Ministry of Industry and Information Shandong Provincial Department of

Technology of the People's Republic of China Industry and Information Technology

Social

First Prize of the 17th National

Special Jury Award of the China's Industrial Data Management Innovation

4th China Automobile Grand Governance "Forerunner" Achievement Award for Petroleum Shandong May Day Enterprise Standard

Ceremony Enterprise (2024) and Chemical Enterprises Labor Award "Leader"

China Media Group (4th China China Federation of China Chemical Enterprise Shandong Federation of Trade Beijing Rubber Industrial

Automobile Grand Ceremony) Industrial Economics Management Association Unions Research and Design Institute

Most Promising Employer

Ranked 108th in China's 500 Most Excellence Award of the 8th (China's Best Employer of the China Outstanding Employer

Valuable Brands (2024) Qingdao Mayor Quality Award Year 2024) (2025)

World Brand Lab Qingdao Municipal People's Government Zhaopin 51jobAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 09Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

ESG Highlights Performance

ECO-GOVERNANCE: ECO-PRODUCTION:

New Chapter of Responsibility Governance Pioneering Quality-Driven Operational Excellence

Sustainable Development Governance Product Quality and Safety Customer Service

Issued "eco+" Sustainable Development Strategy 100 Conducted achieving Achieved an average customer satisfaction score exceeding % 1815 100 % 97

43 43 of operational factories obtained ISO % % 9001 Quality Management System quality training coverage

certification sessions

of Board members of Board members are

are women independent directors

0 Supply Chain Managementtotaling

recorded major incidents related to 282042 hours Held

Business Ethics product safety or quality liability 100% 30

R&D Innovation of raw material suppliers dedicated training 100 23 signed the Quality sessions on supplier % Assurance Agreement quality

of employees received business ethics training sessions 100 Launched Eco Rubber Chat the

business ethics training conducted for suppliers

% world's first large language model

of operational factories certified by CNAS in the rubber tire industry

Established a procurement Delivered

risk management system

and EcoVadis assessment 23

Information Security framework

3 2008 ESG training sessions for suppliers

0 enterprises recognized as high-tech valid patents and

incidents involving information security

breaches or customer privacy leaks 4 315 558 3

suppliers signed the for internal

national-level innovation platforms newly granted patents Supplier Code of Conduct procurement staffAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 10Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

ECO-PLANET: ECO-HARMONY:

Shaping the Future of Sustainable Growth Fostering a Culture of Diversity and Inclusion

Green Operations Inclusive Workplace

100 % of operational factories obtained ISO 1 2 2 100 % of operational factories obtained SA8000 certification

14001 Environmental Management System and ISO national-level green supply national-level provincial/municipal-

50001 Energy Management System certifications chain enterprise green factories level green factories

Climate Response Talent Development Employee Care

Carbon emissions per unit of PCR tire production Utilized reducing carbon emissions by Provided an average of achieving Achieved a

decreased by

19.3 16500 tonnes 24741tonnes 42.95 100 % 92.5 % % of biomass training hours per coverage participation rate in the employee

compared to 2022 employee satisfaction survey

Carbon emissions per unit of TBR tire production Generated reducing carbon emissions by with an average satisfaction score of

decreased by

19.7 43.48 million kWh 23333

Appointed

tonnes2 93.7

% of photovoltaic electricity 480

compared to 2022 mentors through talent development programs

Work Together

Carbon emissions per unit of OTR production Reduced

decreased by guiding a total of

29.9 208600 tonnes 862 RMB 4.34 million % of carbon emissions throughout the year across the Group invested in rural revitalization and

compared to 2022 trainees donations to various social sectors

Promoting Clean Technologies and Products Occupational Health and Safety

The sustainable material content in Developed the technology to incorporate Developed the technology to incorporate

tires reached Reached

31.8 over 75 % over 80 % 100 % % 100%sustainable materials in PCR tires sustainable materials in TBR tires of operational factories obtained ISO 45001

Occupational Health and Safety Management coverage for employee

Awarded covering certification occupational health checkups

890

China Green Product Certificates for EcoPoint3 tires tire specifications

2 Calculated based on the national average carbon dioxide emission factor of 0.5366 kgCO2/kWh as stated in the 2022 Announcement on Issuing Carbon Dioxide Emission Factors for Electricity (hereinafter the same).ECO-GOVERNANCE:

Advancing a New Era of

Responsible Leadership

Sailun Group has established a structured and science-based govern-

ance system that provides a solid foundation for our continued growth.We continuously enhance internal controls and risk management

strictly uphold business ethics and promote ESG management by for-

mulating a sustainable development strategy that we integrate into our

daily operations. At the same time we place high importance on stake-

holder interests and remain committed to collaborating with all parties

to achieve shared development and prosperity creating a new chapter

in sustainable development.Responding to the following indicators and targets

SSE Guidelines:

Data security and customer privacy protection Due diligence Stakeholder

engagement Anti-commercial bribery and anti-corruption Anti-unfair

competition 01

UN SDGs:

Sustainable Development

Governance

Corporate GovernanceAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 12

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sustainable Development Sustainable Development Governance Structure

Governance

To implement the concept of sustainable development and integrate it into the Group's daily operations Sailun Group has established a comprehensive

Sailun Group recognizes that robust ESG governance is fundamental to governance structure with clearly defined responsibilities at each level ensuring effective and coordinated ESG management. The Board of Directors as

achieving sustainable development. We are committed to strengthening the highest governance body oversees sustainability-related matters and ensures alignment between corporate strategy and sustainability objectives.our ESG governance structure to ensure that sustainability goals are The Board authorizes the Strategy and Sustainable Development Committee to take direct responsibility for decision-making and coordination of ESG-

closely aligned with our core business objectives. Through double related issues.materiality assessments we identify key topics and formulate targeted

sustainability strategies. We actively engage with stakeholders to Board of Directors

incorporate diverse perspectives into our decision-making processes and

to demonstrate transparency in our ESG practices and achievements. Strategy and Sustainable

Development Committee

Group Sustainable Development

Leadership Team

Group Strategic Management

Office of Sustainability

Group Sustainable

Development Working Team

Sustainable Development Governance Structure

Marketing Working Team

Operations and Support

Working Team

Public Welfare and Social

Responsibility Working Team

Qingdao Factory

Sustainability Quality and System Working

Working Team Team

Shenyang Factory

Sustainability Technology Working Team

Working Team

Dongying Factory

Sustainability Sustainable Procurement

Working Team Working Team

Weifang Factory Production System Sustainability

Sustainability Working Team

Working Team

Vietnam Factory

Sustainability Employee Rights and

Working Team Development Working Team

ACTR Factory

Sustainability Compliance Working Team

Working Team

Cambodia Factory Investment and Financing

Sustainability Relations Working Team

Working Team

Business Ethics Working Team

Information Technology

Working Team

Communications Working

TeamAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 13

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

During the reporting period Sailun Group's Strategy and Sustainable Development

Level Governance Subject Personnel Composition Functions Monitoring/Reporting Committee held a meeting focused on sustainability governance. The meeting Mechanism reviewed and approved our sustainable development strategy and objectives

double materiality topics and the annual sustainability report. Meanwhile

R esponsible for studying sustainable development the Sustainable Development Leadership Team Strategy Management Office

Decision- Composed of 2 non-independent strategies and promoting the construction of a Strategy and Sustainable Develop- Reporting to the Board of Direc- of Sustainability and Sustainable Development Working Team participated making ment Committee directors and 1 independent direc-

sustainable development system

tors at least once a year in specialized training programs on sustainability governance to ensure that Level tor Annual review of sustainable development reports personnel at all levels can fulfill their ESG responsibilities effectively.and progress on targets

Directly led by the Chairman com- R esponsible for formulating and implementing the Group's sustainable development strategy re- Reporting to the Board of Group Sustainable Development posed of business leaders including

Leadership Team the President Vice President and viewing the performance of commitments on key

Directors or the Strategy & Sus-

topics such as climate change response and social tainable Development Commit- Organize ESG Training for Management to Enhance Assistant to the Chairman responsibility tee at least 4 times a year ESG Competency

Manage-

ment Level

P romoting the implementation of sustainable devel-

Directly led by the Assistant to opment strategies and initiatives and preparing the Monthly reporting of progress

Group Strategy Management the Chairman and composed of and results to the Sustain- In November 2024 Sailun Group held an ESG training session specifically ESG Report

Office of Sustainability the Secretariat of the Working ability Leadership Working for all management to enhance ESG awareness. Nearly 500 middle

Team Regularly summarizing ESG progress and achieve- Team and senior-level management personnel participated both online

ments and offline. We invited external experts to lead sessions covering ESG

frameworks external regulatory requirements best practice sharing and

strategy building. This initiative aimed at providing our management

Execution Group Sustainable Develop- Composed of the heads of all busi- I mplementing the strategic objectives of sustain-

Monthly reporting of ESG-re-

Level ment Working Team ness departments and factories. able development planning and executing annual

lated progress to the Strategy with a comprehensive understanding of ESG's significance. The training

sustainability-related tasks Management Office of Sustain- strengthened our ESG awareness across the Group improved our ESG ability management capabilities and laid a solid foundation for the effective

implementation of our ESG strategy.Decision-Making and Supervision Professional Skills and Abilities

Board of Directors and the Strategy and Sustainable Development Committee Sailun Group ensures that members of the Board of Directors and the Strategy

regularly review progress on sustainability goals discuss risks and opportunities and Sustainable Development Committee have diverse professional backgrounds

based on external trends and the Group's development phase and evaluate covering areas such as auditing risk management financial management and

management strategies for sustainability risks to ensure these strategies possess rich experience in industry research. This diversity supports informed and

integration into our long-term development planning and sustainable comprehensive decision-making that incorporates sustainability considerations

development strategy. To supervise the implementation of the sustainable into long-term corporate planning and decision making. Our directors regularly

development strategy and the achievement of its objectives the Group has participate in training programs organized by external professional institutions

incorporated ESG performance into the performance evaluations of certain to stay up to date on the latest compliance requirements and best practices in

directors and senior executives. Their pay is linked to ESG indicators relevant sustainability. This continuous learning process enhances their awareness and

to their respective areas of responsibility such as occupational health and decision-making capability regarding sustainability. We also maintain ongoing

safety product quality climate change tackling and business ethics. We apply communication between the Group Sustainable Development Leadership Team

a corresponding reward and penalty mechanism based on the completion Group Strategy Management Office of Sustainability Sustainable Development

of sustainable development targets enhancing both the engagement of our Working Team and external institutions. Through continuous sustainability training

decision-making bodies and our overall management efficiency. Additionally and capacity building we ensure these bodies enhance their ESG management

we embed ESG performance into the Group's annual performance evaluation capabilities and jointly drive value creation in sustainable development.system cascading these indicators to key departments as part of their

performance assessments.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 14

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Stakeholder Communication

Sailun Group places significant importance on the expectations and

demands of our stakeholders. We continuously expand diversified Stakeholders Issues of Concern Communication Method

communication channels to ensure smooth and effective stakeholder

engagement. We actively listen to stakeholder expectations and P roduct sustainability

demands respond promptly and communicate our sustainability P roduct quality and Supply chain management Meetings exchanges and visits bidding and tender-

philosophy and ESG progress thereby enhancing transparency in our safety ing business negotiations supply chain construc- Business ethics tion

sustainability governance. Suppliers R &D innovation

P roduct sustainability

C ustomer service Providing high-quality products and services busi-

I nformation and ness communication site visits

Customers privacy protection

R &D innovation Information disclosure shareholders' meeting in-

P ublic welfare service R isk management vestor communications performance briefings rou-

and social contribution B usiness ethics tine receptions dedicated phone number and email

Investors C orporate governance address SSE e-interaction platform

E nvironmental

management R &D innovation

C limate change Business ethics Government meetings special reports information

tackling submission project collaboration information dis-

Government Industry Associations Information and privacy closure

and Regulatory Agencies W ater stewardship protection

P roduct sustainability

H uman rights

O ccupational health T raining and development

and safety Employee congresses training and career planning

Diversity equality and inclusion onboarding programs internal communications

Employees C ompensation and

benefits

E nvironmental

management Biodiversity conservation Public welfare activities social programs energy

C limate change Rural revitalization and local conservation and emission reduction initiatives

Society and the Public tackling community developmentAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 15

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Double Materiality Analysis

Sailun Group is committed to understanding stakeholders' key concerns and integrating their expectations and demands into our sustainability practices.Based on our industry characteristics business model and value chain and by identifying external areas of concern we have defined sustainability issues Climate change tackling

that are material to our operations. By comprehensively analyzing factors such as regulatory requirements and industry trends we have identified ESG Business ethics

material issues and conducted both impact and financial materiality assessments. The results of these assessments are reviewed and approved by the Board Environment management

of Directors. Product quality

Human rights Occupational health and safety

Through systematic evaluation we identified 23 sustainability issues3 4 in total. Among them climate change tackling and safety and quality of products Water stewardship and safety

were classified as issues of double materiality. These issues are disclosed in accordance with the four pillars of governance strategy risk and opportunity R&D innovation

management and metrics and targets. To fully understand how these material issues affect our business development and how they impact the economy Compensation and

society and the environment we have developed targeted short- medium- and long-term management strategies. We continuously monitor progress and benefits Product sustainability

improve our management practices to minimize the potential impact of internal and external risks on our operations and stakeholders.Diversity equity and inclusion Customer engagement

Corporate Training and development

Biodiversity governance

conservation Information and privacy protection

Rural

Corporate Background Analysis Materiality Assessment Circular economyrevitalization Social Sustainable

and local investment supply chain Supply chain management

Conducting an in-depth analysis of the Group's business plan Issuing prioritization based on multidimensional analysis of expert community and

development

strategic guidelines and financial statements examining the opinions industry peer experiences feedback from management community

engagement

geographical locations of Group activities and product services investors and employees. Risk management

and creating a detailed business relationship map to clarify the Smart and digital manufacturing

upstream and downstream value chains. Impact Materiality Financial Materiality

Studying relevant laws regulations and regulatory policies Assessing impact materiality Assessing financial materiality

analyzing market trends and industry dynamics and identifying based on factors such as scale based on the impact of the Financial materiality

and understanding the needs and expectations of key scope likelihood severity and issue on the Group's financial Environmental issues Social issues Governance issues

stakeholders. irreversibility of the impact. performance the achievement

of strategic goals and the Sailun Group's Double Materiality Issues Matrix for Sustainable Development in 2024

Conducting a comprehensive potential for operational or

quantitative evaluation by

Issues Identification and Issue List Establishment business disruption. 3analyzing multidimensional As of the end of the reporting period the Group's balance of accounts payable

(including notes payable) did not exceed RMB 30 billion accounting for less than

information from industry peers Comprehensively evaluating

Benchmarking against regulatory requirements capital market 50% of total assets. No overdue payments to SMEs were recorded in the National external concerns and internal the financial impact of each Enterprise Credit Information Publicity System. Therefore a separate topic on

concerns and issues prioritized by industry peers referring to laws management perspectives; issue through interviews and "Equal Treatment for SMEs" was not established. "Due Diligence" and "Stakeholder

regulations and industry standards and making comprehensive setting a threshold to evaluate surveys with Group’s manage- Communication" are not listed separately as they are addressed under other issues.analysis on customer demands to identify potential sustainability the materiality of the impact ment and setting thresholds For related content see Appendix II of the Report.material issues for Sailun Group laying the foundation for further followed by ranking the issues to evaluate financial materi- 4 The topic of "Climate Change Tackling" includes content related to "Energy

evaluating their impact and financial materiality. based on their materiality. ality and ranking the issues Utilization"; "Environmental Management" includes "Environmental Compliance

accordingly. Pollutant Discharge and Waste Treatment"; "R&D Innovation" includes "Innovation-driven Practices and Scientific Ethics"; "Business Ethics" includes "Anti-Commercial

Bribery Anti-Corruption and Anti-Unfair Competition". See Appendix II of this

Double Materiality Analysis Process Report for the relevant topic index.Impact materialityAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 16

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sustainable ECO-PLANET ECO-HARMONY ECO-PRODUCTION ECO-GOVERNANCE

Development Strategy

Strengthen the foundation of envi- Foster a caring and inclusive work- Drive innovation in green manufactur- Uphold the core principles of business

ronmental protection refine resource place fulfill social responsibilities ing set new benchmarks in product ethics build a comprehensive risk

recycling pathways build climate re- with compassion protect the planet’s performance cultivate a sustainable management framework and ele-

silience capabilities and set a bench- biodiversity and build a diverse and supply chain ecosystem and empow- vate sustainable governance to new

mark for sustainable industrial devel- thriving community of shared respon- er better mobility for humanity heights

opment sibility

Sailun Group is committed to promoting

high-quality development in the rubber ECO-stewardship ECO-inclusion ECO-innovation ECO-integrity

tire industry with advanced technology.We strive to provide superior products We actively fulfill our environmental We uphold the core values of trust We strengthen our R&D capabilities We adhere to integrity and compli-

and services for global tire users responsibilities by building and cer- and respect by offering clear and cultivate innovation talent and inte- ance in all business practices estab-

contributing to safer greener and tifying environmental management diverse career development paths for grate smart manufacturing technol- lishing a solid governance framework

smarter mobility while contributing to a systems across our global operations our employees. We protect employ- ogies to boost production efficiency for business ethics. We foster a

more efficient and harmonious society. and promoting environmental aware- ee rights strengthen compensation and quality. We seize opportunities in transparent corporate environment

We are dedicated to realizing our vision ness among all employees. We strictly and benefits systems and cultivate a clean technologies embedding sus- through continuous supervision and

of "becoming a global influential tire monitor emissions to ensure full diverse healthy and safe workplace tainability across the entire product cultural promotion and build a robust

company". compliance and continually improve to enhance employee well-being and lifecycle to advance green mobility. risk management system to support

While deepening our commitment to resource efficiency through circular sense of belonging. long-term success.industry advancement we officially economy practices.launched the "eco+" sustainability

strategy in fiscal year 2024. Built upon

four key pillars—eco-excellence eco- ECO-resilience ECO-impact ECO-reliance ECO-synergy

harmony eco-production and eco-

governance—and focusing on eight core

action areas the strategy reflects our We proactively address climate-re- We are committed to fulfilling our We uphold quality as the foundation We strengthen collaboration with

dual mission to ecological preservation lated risks and opportunities by corporate social responsibilities by of our business exceeding industry partners across innovation quality

and economic development with the "+" embedding climate action across the actively engaging in philanthropic standards and pushing the bounda- improvement and sustainability. We

symbolizing the extension of the mission sustainability governance frame- initiatives and contributing to the ries of tire performance. We deliver enhance full-cycle supplier man-

to our business operations. Through work. We systematically identify and protection of biodiversity to support safe comfortable travel experiences agement and empower suppliers to

close collaboration with customers assess climate risks and opportu- a thriving global community. and earn customer trust through improve their sustainability per-

employees shareholders government nities formulate targeted response efficient and professional service. formance building a resilient and

agencies partners and the public we measures and enhance climate sustainable value chain together.aim to create a sustainable ecosystem resilience through clean energy tran-

across environmental social governance sition robust energy systems and

and product dimensions achieving the improved energy efficiency.coexistence between business value and

social value.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 17

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Corporate Governance

Sailun Group is committed to compliant operations strictly adhering to relevant laws regulations and industry standards in the regions where it We place significant importance on the diversity of our Board members

operates while striving to set an industry benchmark. We continue to optimize our governance structure uphold business ethics establish a risk considering it a critical factor in driving the Group's sustainable growth.management and internal control system and implement various measures to protect information security and customer privacy ensuring the The director’s nomination process strictly follows established procedures

stability and continuity of our operations. considering factors such as industry experience professional expertise

management capabilities cultural background and gender to ensure

diversity within the Board.Board Governance

In accordance with the Company Law of the People's Republic of China the Code of Corporate Governance for Listed Companies and other relevant As of the end of the reporting period

laws regulations and rules Sailun Group has established a governance structure consisting of the Shareholders' Meeting the Board of Directors

the Supervisory Board and management. Four specialized Committees support the Board of Directors: the Strategy and Sustainable Development

Committee the Audit Committee the Nomination Committee and the Remuneration and Assessment Committee. These committees assist the Board in

making informed decisions and ensure clear responsibilities and efficient collaboration across all governance bodies. Board of Directors consists of 7members

Shareholders'

Meeting including accounting for

343%

Supervisory Board independent directors

Board of Directors and accounting for

343%

female directors

Strategy and Sustainable Audit Committee Nomination Committee Remuneration and

Development Committee Assessment Committee

Corporate Governance StructureAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 18

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Risk Management and Control

Sailun Group strongly believes that a robust risk management system

is fundamental to ensuring long-term stability and development.We have established a comprehensive risk management and control First Line of Defense: Business Departments

framework that integrates business processes with risk management

through collaboration across the three lines of defense. We continue to Responsible for risk prevention and response in daily business activities. Identifying potential risks assessing

refine our risk management processes and enforce risk control systems their impact and responding appropriately to manage them ensuring that business processes comply with risk

to ensure the effective implementation of risk management measures. management policies

Additionally we have optimized our daily risk management and

reporting mechanisms to provide strong support for achieving our risk

management objectives.Sailun Group has set up three lines of defense for risk management

involving business departments the Legal and Risk Control Department

and the Audit and Internal Control Department ensuring the Second Line of Defense: Legal and Risk Control and Other Departments

comprehensiveness and effectiveness of risk management efforts.Providing guidance and supervision for risk response efforts while empowering business departments to ensure

the effective implementation of risk management policies and monitoring the effectiveness of risk control

measures

Third Line of Defense: Audit and Internal Control and Other Departments

C onducting independent supervision and evaluation of the effectiveness of risk prevention and control.Performing regular audits and assessments to ensure the effectiveness of the risk management system and

regularly reporting on the Group's risk management activities to the management team

Three Lines of Defense for Risk Management and Control

Building on our existing strong risk management structure we conduct thorough risk identification perform accurate risk assessments implement

timely and effective risk response measures and monitor risks objectively while maintaining detailed records and reporting. This process enhances the

effectiveness of our three lines of defense in risk management and ensures the successful achievement of our risk management objectives.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 19

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

To ensure the strict implementation of risk control we conduct risk-based

audits that cover production factories sales companies R&D centers and

Risk Identification Risk Assessment Risk Response various functional departments. In 2024 we continued to focus on high-risk

areas and conducted routine audits at two factories to identify and resolve

internal control issues strengthening the internal control system. We also

Identifying potential risks Evaluating the potential impact of risks Developing appropriate risk response

in daily business activities on the Group's operations including strategies such as strengthening the carried out customs import and export certification audits at four factories

including production supply effects on financial health production authorization mechanisms for high-risk in China to ensure compliance with regulations. Additionally by formulating

chain market and financial efficiency market share and other issues and diversifying the supply chain the Group's Regulations on Information Confidentiality Management

operations areas and determining the risk levels to mitigate avoid or transfer risks and establishing an early warning and tracking mechanism for export

control and trade sanctions risks we effectively mitigate commercial risks

and ensure compliance in international trade enhancing our overall risk

management capabilities.While reinforcing risk control we also focus on promoting a robust

Risk Log Risk Monitoring compliance culture across the Group. In 2024 we launched the "Compliance

for Sustainable Development" column on our Enterprise WeChat platform

Recording all key information throughout Monitoring the effectiveness of risk delivering weekly updates on risk control and compliance-related content

the risk management process including response measures ensuring that risk to all employees. To date we have published ten articles in this column

detailed records of risk identification management policies are properly covering critical domains including business ethics overseas employment

assessment response and monitoring implemented and adjusting strategies practices trade secret protection integrated risk prevention systems and

to support internal audits and based on changes in the market and the European Union Deforestation Regulation (EUDR). These efforts ensure

management decision-making internal environment

that all employees understand and adhere to compliance requirements

further strengthening the Group's risk prevention and control system.Risk Management and Control Process

风控合规讲堂（第四期）

欧盟零毁林法案来了！

企业如何应对绿色大考？

"Compliance for Sustainable Development" ColumnAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 20

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Business Ethics Carrying out Specialized Training on Anti-Commercial Bribery Strengthening Employees' Awareness of Integrity

Sailun Group attaches significant importance to the development of key positions suppliers and partners. Every three years we regularly

anti-corruption and integrity culture adhering to business ethics and conduct business ethics audits across all operations to evaluate compliance Sailun Group views the development of a compliance and

consistently upholding the principles of honesty integrity and compliance. with our code of business ethics and conduct. During the reporting integrity culture as a cornerstone of sustainable growth and

We have strengthened the systematic framework for anti-corruption and period we collaborated with external experts to review the field scope consistently strengthens employees' awareness of ethical

anti-unfair competition efforts implementing a whistleblower protection and standards of business ethics audits. We conducted a comprehensive conduct. During the reporting period we organized a specialized

mechanism to safeguard the rights and interests of informants. revision and enhancement of our code of business ethics and conduct training session on anti-commercial bribery with the theme

along with related policies. Additionally we strengthened the audit team’s "Strengthening Anti-Bribery Compliance Awareness and Jointly

understanding of auditing processes and methodologies ensuring Building the Cornerstone of Integrity Management" attended

Anti-Commercial Bribery and Anti-Corruption greater consistency and standardization in business ethics audits. We also by over 300 management staff and key personnel. This training

conducted five special anti-corruption audits on parts of the supply chain not only enhanced employees' compliance awareness but also

covering over ten partners identifying eight risk points and collaborating

Sailun Group strictly complies with the Criminal Law of the People's encouraged them to resist bribery in their daily work and maintain with business departments to optimize management measures.Republic of China the Anti-Unfair Competition Law of the People's Republic professional integrity thereby laying a solid foundation for the

of China the Anti-Monopoly Law of the People's Republic of China and Sailun Group actively promotes the development of an integrity and Group's long-term stable development.other applicable laws and regulations in the regions where we operate. compliance culture within the organization. Through centralized training

We have issued a Notice on the Establishment of a "High-Voltage Line" and ongoing communication we advocate for adherence to our code of

Against Disciplinary Violations which sets forth requirements regarding business ethics and conduct among all full-time employees part-time staff

fraud bribery disclosure of confidential information unfair competition and contractors collectively fostering a culture of integrity. For full-time

conflicts of interest and violations of the Group's rules. This policy aims to employees we have uploaded anti-commercial bribery training materials to

guide employees particularly those in management in fostering a strong our internal learning platform and set reminders to ensure every employee

sense of integrity and discipline ensuring compliance with the Group's receives essential integrity and compliance education. For part-time and

ethical guidelines. Additionally the Employee Handbook outlines specific contractors we emphasize business ethics requirements both verbally

behavioral expectations for management to avoid fraudulent activities and in writing when signing contracts and we monitor their behavior in

bribery corruption the disclosure of confidential information and unfair daily operations through the oversight of supervisors and colleagues

competition thereby establishing a unified standard for ethical behavior. ensuring alignment with integrity standards. During the reporting period

100% of employees and directors completed training on business ethics.

Board of Directors and the board-level Strategy and Sustainable Development As part of our integrity-focused supervision efforts we conducted

Committee oversees the development of the Group's ESG system including seven warning and education sessions reaching over 1000 individuals

matters related to business ethics. We have established a Disciplinary including all management personnel functional heads all employees in the

Supervision Committee which is responsible for building the supervision Regarding integrity management of external stakeholders we ensure Procurement and Sales Centers and new hires within their first three years

framework across all business units and subsidiaries of the Group. This that suppliers customers and other partners adhere to our business at the Group.Committee formulates integrity-related policies and develops regulations ethics standards through rigorous reviews and regular training. Our

and procedures focused on anti-corruption. It also investigates violations of Supplier Management Regulations explicitly state that in cases of serious

the code of conduct and reports regularly and directly to the Board. As part During the reporting period violations of business ethics we will implement emergency measures and

of our ongoing anti-corruption efforts the Qingdao Factory has obtained terminate the cooperation. Additionally suppliers are required to comply

ISO 37001 anti-bribery management system certification. with business ethics standards in our social responsibility questionnaires

100 and risk assessment forms. In 2024 we conducted 23 training sessions for To ensure proper management and oversight of business ethics we % suppliers covering topics such as anti-corruption to encourage them to

conduct internal audits based on the code of business ethics and conduct of employees and directors completed training strictly follow our business ethics code and collaborate in creating a clean

assessing potential sustainability risks and performing due diligence on on business ethics and healthy cooperative environment.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 21

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Anti-Unfair Competition

Sailun Group is committed to promoting fair competition by preventing unfair practices through customer information reviews and contract examinations.We use a marketing system to conduct background checks on customers with internal staff reviewing the information. Furthermore we employ a

contract lifecycle management system to rigorously review contracts and ensure that all business activities comply with legal and regulatory standards.The Employee Code of Conduct explicitly prohibits employees from engaging in any form of unfair competition including but not limited to entering into

agreements with competitors or restricting the supply of products or services all to maintain a fair market environment. During the reporting period

Sailun Group was not involved in any litigation related to unfair competition.Violation Whistleblowing

Sailun Group firmly believes that ensuring effective and transparent reporting channels is critical to fulfilling our social responsibilities. We have

established comprehensive reporting mechanisms including an online reporting page an email address a telephone hotline and postal mail ensuring

that employees and partners can report business ethics violations at any time. These reporting channels are publicly available on our official website and

promoted internally through communication software bulletin boards and other platforms. Additionally we clearly define the principles of the reporting

and grievance mechanism striving to create an efficient transparent and fair system for handling reports and grievances.Legality

Accessibility Ensuring the reporting and Continuous improvement

grievance handling process

Providing stakeholders complies with laws and Regularly evaluating

Transparency with convenient regulations and meets the effectiveness of the In terms of handling reports and complaints Sailun Group has

channels for submitting international standards reporting and grievance Predictability established the Working Rules for the Discipline Supervision Committee

Publicizing the reporting reports and grievances mechanism and driving which designates the Committee as responsible for addressing all

and grievance handling ongoing improvements Establishing clear issues related to fraud and corruption. Upon receiving complaints or

process to ensure timelines and identifying issues through inspections the Committee will promptly

stakeholders understand it expected outcomes conduct verification and preliminary investigations. If a violation is

confirmed the Committee will formally open a case thoroughly collect

Principles to be Followed in the Report

and Grievances Mechanism evidence and determine the facts taking appropriate action based on

the severity of the findings.To encourage reporting and grievances and protect the privacy of

Fairness Protection of rights whistleblowers Sailun Group has implemented strict confidentiality

measures including l imiting access to sensit ive information

Conducting impartial Safeguarding reporting and and designating dedicated personnel to manage reporting and

assessments of every report grievance parties from grievance materials. These steps ensure that the privacy and rights

and grievance received retaliation of whistleblowers are thoroughly protected. We are committed to

addressing any retaliation against whistleblowers seriously and holding

accountable those responsible.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 22

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Information Security

Sailun Group prioritizes information security and privacy protection. We have established a clear information security management structure supported by a four-level incident response framework. This framework

We have established a robust information security management and are systematically advancing the development of our information allows us to execute 12 types of automated response actions—such

framework and continuously enhance our vulnerability prevention and security management system. During the reporting period we as asset isolation via SOAR5 and blocking of malicious IP?6 addresses—

control measures. Additionally we actively pursue system certifications implemented continuous monitoring and optimization at the group level ensuring the security of our business systems and the integrity of our

and regularly organize emergency drills and training to ensure that to ensure that our data security and privacy protection systems meet data. Building on our existing information security management system

both the Group and user information security and privacy rights are both regulatory compliance requirements and business needs effectively we have further developed a multi-layered protection mechanism.comprehensively protected. mitigating data security risks. Additionally our Qingdao Factory has been Combined with regular emergency response drills and attack-defense

certified for ISO 27001 Information Security Management System and simulations these measures provide comprehensive safeguards for data

Sailun Group adheres strictly to the Cybersecurity Law of the People's ISO 27701 Privacy Information Management System further confirming security and customer privacy rights.Republic of China the Data Security Law of the People's Republic of the effectiveness and professionalism of our information security

China the Personal Information Protection Law of the People's Republic management practices.of China and other relevant laws and regulations applicable in the

regions where we operate. We have developed a global compliance We have built a cybersecurity and information security platform that

system deployment plan and rely on internal information security integrates a four-dimensional data acquisition layer composed of traffic

management policies such as the Group's Information Security and probes endpoint monitoring log auditing and threat intelligence

Confidentiality Management Regulations and Information Security aggregation enabling proactive threat detection. We have also

Risk Management Regulations to provide institutional safeguards for established a full-lifecycle systematic vulnerability management process

information security and customer privacy protection.

5 SOAR (Security Orchestration Automation and Response) is a technology and methodology that orchestrates security processes and enables rapid response through automation.

6 IP (Internet Protocol) is the unique digital identifier used to distinguish devices (such as servers computers routers etc.) in a network.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report

23

Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Promoting Information Security Culture and

Strengthening the Defense Line

Software upgrades: Conducting regular network-wide scans for vulnerabilities and patches in key systems and software and promptly

addressing any identified issues.To improve employees' awareness of information security and

Hardware upgrades: Upgrading information security hardware in our factories such as data backup and storage devices. IT skills we regularly conduct training on information security

Security risk scanning: Performing routine comprehensive scans of information systems and network devices to detect vulnerabilities awareness National Information Security Publicity Week activities

and address them in a timely manner. and IT knowledge sessions. These activities help increase

Operational data encryption: Implementing zero-trust access control and bastion host access control alongside employing data de- employees' understanding of potential security risks and enhance

identification off-site disaster recovery and encrypted data transmission technologies. their ability to identify and address various information security

Information security auditing: Regular internal audits are conducted by our audit team while external agencies are engaged in challenges. Through these initiatives we actively foster a safer

independent audits of our information security management systems. and more reliable work environment safeguard the Group's

assets and support its long-term sustainable development.Emergency drills: During the reporting period we organized several internal emergency drills including phishing email exercises for

employees database recovery drills and virus infection drills.Attack and defense drills: In 2024 we coordinated three external attack and defense drills including network protection exercises

organized by Qingdao City and the Qingdao West Coast New Area as well as external security assessments conducted by third-party

security vendors. Any issues identified during these drills were promptly addressed and rectified.Cross-border data security: Data is categorized and assessed and we use encryption technologies and secure protocols for data

transmission.Database analysis and auditing: We have implemented auditing systems established operational monitoring rules and conducted

retrospective analyses of records to pinpoint security issues.System-level disaster warning and prevention: Risks are assessed and early warning and emergency response mechanisms are

established. Additionally disaster recovery plans are created and regularly tested.Data and hardware backups: Backup strategies have been developed employing redundant hardware configurations to ensure the

security of backup storage.App data crawling notifications: Users are clearly informed about data crawling activities. We obtain their authorization before

proceeding and ensure timely updates to public information.Moreover Sailun Group actively promotes an information security culture by organizing various activities to raise employee awareness of information

security. These initiatives aim to enhance employees' ability to recognize and respond to potential network security risks. During the reporting period no

incidents of information security breaches or customer privacy disclosures occurred.Customer Privacy Emergency Information Security

Protection Measures Response Actions MeasuresECO-PRODUCTION:

Pioneering Quality-

Driven Operational

Excellence

Sailun Group upholds product quality and safety as non-negotiable

priorities enhancing brand influence through R&D and innovation.We are committed to improving customer experience and practicing

responsible marketing to earn long-term consumer trust and strong

market reputation. By implementing full-cycle supplier management

and sustainability procurement strategies we have comprehensively

strengthened our core competitiveness while creating lasting value for

society.Responding to the following indicators and targets

SSE Guidelines:

Innovation Ethics of science and technology Supply chain security

Equal treatment to small and medium-sized enterprises Product and 02

service safety and quality Due diligence

UN SDGs:

Product Quality and Safety

R&D and Innovation

Commitment to Service Excellence

Supply Chain ManagementAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 25Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Product Quality and Safety Strategy

To ensure product quality and safety we adopt a strategic framework By analyzing our business structure operations and mid-to-long-term strategies we have identified short- medium- and long-term risks and

that rigorously manages risks and opportunities embedding quality opportunities related to quality and safety to assess their operational and financial impacts. Based on these insights we have developed a set of

indicators and targets as an integral part of our corporate management. management strategies including quality system improvements product testing product recalls and quality culture cultivation.Through stringent product testing efficient recall mechanisms and

systematic quality training we guarantee product quality and safety

while enhancing brand reputation and competitiveness—providing

robust support for our financial resilience and sustainable growth.Key Risk/Opportunity Definition Impact

Quality Delivery of non-conforming products due to substandard Short-term: Product recalls and customer complaints

Control materials inadequate quality control systems or insufficient Mid-term: Brand erosion

Risk staff competency Long-term: Competitiveness decline

Governance

As a comprehensive governance framework our sustainable development Regulatory Heightened safety risks and governance complexity arising Short/mid-term: Rising regulatory costs due to policy changes

governance structure monitors evaluates and enforces aspects related from new materials and products introduced by rapid Risk Long-term: Increased compliance cost arising from adaptive

to product quality and safety (refer to Section Sustainable Development technological advancements strategies

Governance Structure for further details). The Quality and System

Working Team a component of the Group Sustainable Development

Working Team submits monthly reports to the Group Strategic Short-term: Increased R&D investment

Management Office of Sustainability regarding advancements in quality Technological Enhanced quality and safety through innovations in materials

and safety management. Opportunity and products

Mid-term: Quality improvements

Long-term: Market advantages through innovation

Board of New pathways created through reformed and innovated Short-term: Accelerated adaptation to new requirements

Directors Regulatory regulatory measures allowing companies to optimize regulatory Mid-term: Improved compliance

Opportunity efficiency and outcomes by participating in regulatory reform Long-term: Increased market opportunities via regulatory

Strategy and Sustainable and governance collaboration

Development Committee

Group Sustainable Development

Leadership Team Market Assessment of professionalism and awareness of quality control

Short-term: Enhanced communication with customers

personnel based on customer feedback on product quality the Mid-term: Improved product quality and higher satisfaction

Opportunity precision of test results and routine monitoring

Quality and System Working Team Long-term: Market share gains through enhanced quality

Product Quality and Safety Governance Structure Risks and Opportunities Related to Product Quality and Safety and Their ImpactsAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 26Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Quality Management System

We have established three management teams under our Quality We have also set up a three-tier responsibility system to lay a solid foundation for product quality

Management Center each responsible for quality management system and safety.development and operations and maintenance management supplier

quality oversight and delivery quality control and claims.Quality and Safety Officer

Takes overall responsibility for product quality and safety across factories

Comprehensive Quality Management Organizes the evaluation of measures to address product safety risks

R eviews monthly reports from the Quality and Safety Director and provides guidance

Develops the quality management system builds the quality

information system manages quality cost and corporate and coordination for key tasks in the upcoming month

documents and studies latest regulations on product

certification

Quality and Safety Director

Organizes the formulation of quality management policies across factories and

New Product Quality Management ensures their implementation

M anages market demand reviews new product development Organizes the formulation of prevention and control measures for quality and

design reviews and product quality gate safety risks and conducts weekly quality and safety self-inspections

M anages supplier quality performance and supplier quality Organizes the preparation of quality and safety incident response plans and

improvements conducts emergency drills

Organizes quality and safety education training and assessments for employees

Mature Product Quality Management

Quality and Safety Supervisor

Coordinates factory quality operations including technique con- S upervises and instructs employees to implement job-specific quality and safety

trol for mature products finished goods inspection and manu-

facturing process evaluations; plans and implements changes standards

Develops and supervises standards for quality logistics and I nspects the implementation of raw material intake controls production process

claims; manages complaints through a closed-loop process; controls and final product inspection procedures

supervises corrective actions and ensures accountability Controls non-conforming products and ensures employees take effective actions

to rectify quality issues

Management Teams under Quality Management Center and Their Product Quality and Safety Responsibility System

ResponsibilitiesAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 27Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

To ensure robust operation of Advanced Product Quality Planning (APQP7) we have established and enforced a quality gate management mechanism. As of the end of the reporting period all seven of our operational factories

By accelerating its integration with APQP we have formed a dual line of defense in R&D control. This strengthens our delivery capabilities while reducing have obtained ISO 9001 certification achieving 100% coverage of

Failure Modes and Effects Analysis (FMEA8) risks and project costs. international quality standards. Among them six factories have also been

certified under the IATF 16949 Automotive Quality Management System

We have built a quality management system grounded in the PDCA (Plan-Do-Check-Act) cycle. For each process we have developed comprehensive ensuring full certification coverage where applicable9. Furthermore our

procedural documents that clearly define workflow steps responsibilities key control points and areas for improvement. This ensures the system's products have obtained more than 20 certifications including China CCC

continuous optimization and enhanced effectiveness. U.S. DOT Europe ECE Korea KC and EU VECTO.Additionally we link product quality to employee compensation in accordance with our Performance Management Control Procedure. Each factory

is required to develop a Performance Responsibility Agreement based on the Group's annual performance targets periodically report progress and

evaluate and implement rewards and penalties.We have systematically identified potential risks across all processes and their technical steps and implemented advanced error-proofing strategies for

high-risk stages to ensure stable and well-controlled operations. As of the end of the reporting period

Error Detection 100 %

Automated equipment inspection of operational factories obtained ISO 9001 certification

Error Prevention

P rocess route control

Our products have obtained

Material usage error-proofing

over 20certifications

T ooling usage verification Error Correction

Real-time rectification mechanism

Error-Proofing Strategies for High-Risk Processes

7 APQP (Advanced Product Quality Planning): A systematic quality management method to ensure quality standards are met during product development and manufacturing processes.

8 F MEA (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.

9 The Weifang Factory produces OTR tires which are not included in the IATF 16949 product scope and therefore do not require certification.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 28Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Product Testing Product Recalls

We have established and implemented a Product Audit Control Procedure to regularly verify product quality stability according to internal quality To standardize the management of defective product recalls we have

management standards and customer requirements. To prevent and address emerging quality and safety issues we conduct testing and evaluation developed Product Recall Management Regulations which defines our

throughout both product development and mass production stages. During development we conduct performance verification regulatory compliance recall team's responsibilities and outlines recall procedures. For non-

tests and on-vehicle trials. In the mass production phase we implement monthly and quarterly sampling and audit testing to continuously monitor and conforming products identified during recalls we follow our Non-

improve product quality. Conforming Product Control Procedure to prevent unintended use through

corrective isolation and containment actions.All our factories are accredited by CNAS10 and have full in-house testing capabilities spanning raw materials components and finished products.Rigorous quality tests are conducted throughout the entire process. With a robust product testing system and stringent quality standards we have

achieved remarkable outcomes. For example our EcoPoint3 WP81 Winter Tire Series passed EU ice grip performance tests with results 26% above

regulatory standards and our EcoPoint3 SFL2 and SDL27 tires outperformed leading international brands in third-party dry and wet braking tests. Improving Emergency Response with Recall Drills

To enhance testing efficiency and capabilities we introduced China's first 7-meter high-speed endurance testing machine with slip angle functionality

during the reporting period to validate large-size tires. We are also building overseas comprehensive laboratories at two factories under construction

to support raw material quality control rubber performance evaluation and tire product validation. During the reporting period we completed 309 In 2024 we conducted a mock recall for a specific tire batch to

performance tests covering 2890 test protocols and conducted wear tests with a total mileage of 330000 kilometers. familiarize ourselves with the recall mechanism and gain hands-

on experience. After identifying a quality risk we promptly

During the reporting period assembled a recall team and developed a recall plan. Consumers

were notified through our website dealers and phone calls.The drill improved our ability to manage unexpected product

we completed covering accumulating a total mileage of incidents further enhancing recall responsiveness and process

309 2890 efficiency. 330000kilometers.

performance tests test protocols

Enhancing Testing Capabilities Through Dry Braking Projects

We have partnered with Changchun Automotive Testing Center and CCCC First Highway Engineering Group to co-develop the East China

Intelligent Connected Vehicle (ICV) Test Site—a world-class testing platform for smart vehicles and intelligent transportation systems. Spanning

approximately 8600 mu (about 573 hectares) the site is divided into five core zones: intelligent connectivity performance testing durability

testing laboratory testing and operations and maintenance services. A total of 22 high-standard test tracks are planned for phased construction

supporting a full spectrum of vehicle types including both commercial and passenger vehicles. Phase I centered on intelligent connectivity and

performance testing commenced operations in 2024. Notably the intelligent connectivity zone replicates 382 autonomous driving scenarios

making it the most comprehensive closed ICV testing area in China. The performance testing zone includes 8 types of special road surfaces for

brake testing 25 types for ride comfort assessment and a 120-meter-diameter wet circular track equipped with four distinct friction coefficients

positioning it as a national leader in road surface diversity and key performance indicators.

10 CNAS stands for China National Accreditation Service for Conformity Assessment.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 29Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Quality Culture

Strengthening Quality Management with IATF 16949 Training

Each year we provide product quality-related training at the group center

department team and position levels. During the reporting period we In 2024 we conducted two IATF 16949 training sessions for over 100 employees across functions

held 1815 training sessions totaling 282042 hours with 100% employee such as marketing sales HR logistics operations quality R&D technology equipment and

participation. production. Training content was aligned with practical business challenges and delivered using a

team-based point system to encourage engagement enhancing quality management knowledge

among process operators and managers and optimizing the Group's quality management system.Group-Level Training

IATF 16949 Internal Auditor Training

Organized by the Quality Management Center for middle

senior and newly promoted managers

C overs quality strategies quality awareness and quality Promoting Quality Culture to New Hires Through Raising Employee Awareness Through

management processes training Quality Awareness Training Quality Competitions

During the reporting period we organized centralized training for During the reporting period the Dongying Factory hosted the

Center-Level Training 658 fresh college graduates. The head of our Quality Management "Sailun Group Cup" Quality Knowledge Competition which

Center delivered a course titled "Quality Awareness" covering attracted over 1300 individual participants and 9 teams. The

four topics: Understanding Quality Quality Profile Sailun event boosted employee engagement and deepened their

Organized by the Quality Management Center for middle Group's Quality and Quality Culture. Through clear insights and understanding of quality-related knowledge.and junior managers practical experience the training helped new hires build a strong

awareness of quality.C overs quality standards and quality tools training

Department Team and Position-Level Training

C onducted internally by departments and teams

C overs SOPs on-site management quality incident handling

and standard workflows

Head of Quality Management Center Delivering a Training Session The Dongying Factory hosting the "Sailun Group Cup" Quality

Knowledge Competition

Employee Quality Training SystemAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 30Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sailun Group has earned widespread recognition for its product quality and services. During the reporting period we received the Excellence Award at the 8th Qingdao

Mayor's Quality Awards. Established by the Qingdao Municipal Government this award represents the city's highest honor in quality management. It highlights our leadership Functional Analysis

in quality control and our contribution to Qingdao's quality development. Our products were also recognized by partners such as Farizon SANY Commercial Vehicles and

Yutong Group.T ools such as parameter diagrams13 are used

to identify the tire's operating environment

During the reporting period load conditions and interactions with

vehicle systems. This enables us to pinpoint

potential abnormal sources of variation in

we received the the production process providing a basis

for design optimization.Excellence Award at the 8th Qingdao Mayor's

Quality Awards

Structural Analysis

2024 Value Award Farizon 2024 Outstanding Contribution Best Quality Award Yutong

Risk and Opportunity Management Supplier SANY Commercial Group's 2024 Supplier

Vehicles Conference

B y disassembling tire components and

To strengthen the management of product quality risks and opportunities Risk Response Management System using tools such as block diagrams

14

Sailun Group has established a Product Quality and Safety Risk structure trees and QFD (Quality Function

Management Framework. By considering both internal and external Deployment) we have established clear

1112

factors such as market trends technological advancements and regulatory Through our DFMEA Management Regulations and PFMEA Management Regulations we relationships between structure and

changes we have reviewed and developed a comprehensive list of quality systematically apply FMEA to the preventive risk management of product quality. Our R&D function ensuring optimal component

and safety-related risks and opportunities. Key risks are thoroughly Center uses DFMEA to mitigate potential design risks while our Production Center applies synergy and functional performance.identified with their likelihood and potential impact assessed by senior PFMEA to reduce manufacturing risks—ensuring comprehensive product quality and reliability

management to determine management priorities. For high-risk projects improvements.we implement dedicated quality risk control procedures assigning

specialized teams to manage execution and monitor progress. These We conduct functional structural and failure analyses for our tire products to better Failure Analysis

control measures are not just safeguards for product quality they also understand their performance optimize designs and identify and prevent potential risks.enable us to seize opportunities in technological innovation and market These efforts turn our strengths in quality control into competitive advantages. Before

development reinforcing our strengths in quality management. We have launching any project plan we conduct detailed reviews to ensure the design meets all

integrated quality and safety risk management into our broader corporate relevant standards. Through standardized processes and improved mechanisms we monitor

A three-level failure chain is constructed to

risk management framework. For more information see Section 1.2.2 Risk and document risks throughout the entire lifecycle providing strong support for tire quality

match failure effects modes and causes. We

and performance. conduct in-depth analysis of failure modes Management and Control. and design factors and strictly control key

parameters through standardized design

11 DFMEA stands for Design Failure Mode and Effects Analysis. documents to prevent failures at the source.

12 PFMEA stands for Process Failure Mode and Effects Analysis.

13 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.

14 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 Methods for Identifying Tire Product Risks

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 from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 31Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Additionally each factory has set emergency management procedures Metrics and Targets

to address anomalies and quality issues in tire production. These

protocols aim to minimize losses and ensure the continuity safety and

quality of the production process. For example in the event of critical To continuously improve customer experience and product quality—and enhance our market competitiveness—we developed a series of product quality

equipment failure the maintenance department estimates repair time management indicators in 2024 and conducted regular performance tracking. See Appendix I: Quantitative Performance Table for detailed data.while the production management department evaluates the need

for rescheduling and initiates a backup cross-factory production plan. We have also set quality management targets across multiple dimensions and periodically disclosed progress. During the reporting period all our

Once the equipment is restored the technical department verifies quality management targets were met. Notably all of our tire factories have obtained international quality certifications maintaining 100% coverage for

the compliance of production resumption in accordance with internal consecutive years.management requirements to ensure product delivery quality.Our Targets Progress in 2024

Ensure product quality and safety Ensure product quality and safety

Raw & Auxiliary Semi-Finished

Material Supply Product

Interruptions Interruptions 100 % 0 100% 0

coverage of international product recall of operational factories product recall

IT/Network/ Critical

System Equipment quality certifications for obtained the quality

Interruptions Failures eligible factories with stable management certification

operations15

Emergency

Response Plans

Utility for Production

Disruptions/ 7 6Anomalies and

Common Mold Quality Issues Shortages operational factories certified operational factories certified Natural

Disasters to ISO 9001 to IATF 16949

Finished

Manpower Product

Shortages Gas Supply Spot-Check Strengthen quality culture Strengthen quality culture

Disruptions Failures

during

Production 100% 100% 1815

quality training coverage employee coverage in quality training sessions

quality training conducted

15 International quality certifications available to tire factories include ISO 9001 Quality Management System and IATF 16949 Automotive Quality Management System.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 32Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

R&D Innovation

With our R&D management system as the foundation and technology ethic as our guiding principle we leverage digital and smart manufacturing Drive Technological Advancements Through an

technologies to accelerate the integration and expansion of core business operations across the industry chain driving industrial upgrades and Integrated Design & Simulation Platform

enabling greener safer mobility through technological innovation. By continuously strengthening our intellectual property protection framework

we provide solid support for innovation breakthroughs and sustainable development. During the reporting period we continued to develop our

integrated design and simulation platform. By combining structural

design and simulation analysis we aim to build a customer-

centric performance-oriented forward tire development and

Enhancing R&D Capabilities design system to ensure that our final products meet customer requirements and performance expectations. As an essential

tool in this system the platform integrates tire structural design

Sailun Group regards technological innovation as a core competitive advantage and continually improves its R&D system and digital platforms. Our drive performance simulation validation mold drawing design

for product upgrades and industry transformation creates synergy between R&D manufacturing and the market enhancing both operational efficiency construction design and database functions ensuring consistent

and innovation capabilities. implementation of design standards and specifications.In 2024 we created a simulation tool by adding tread design

and functional analysis modules to the platform enabling

R&D System Management standardized scalable tread design and performance simulation. During the reporting period This tool allows performance validation—covering contact area

pitch sequence rigidity braking and noise—offering dedicated

To enhance our R&D capabilities and competitive edge we have support for forward tread design.established the R&D Project Management Regulations standardizing and we provided over 20 with over 1000

optimizing end-to-end project management to ensure timely quality-

assured and quantity-compliant delivery. We have also introduced a set training sessions attendances

of control procedures to oversee the entire development process of new

products securing excellent R&D quality. Additionally our R&D Quality

Management Regulations outline the quality control requirements for key

steps in the R&D process helping to improve both R&D efficiency and Innovation Incentives

product reliability.To protect and apply inventions and enhance innovation capabilities we

During the reporting period we provided more than 20 training sessions have introduced the Group Patent Reward Management Regulations

for all employees related to technology research and development. These which outline the principles content standards and procedures for

sessions attracted over 1000 participants and included expert lectures rewarding patent applications and grants. To make our R&D project

project manager certification training integrated simulation platform usage management more effective we have also implemented performance-

training and onboarding sessions. Collectively these efforts significantly based incentives and created special recognition awards for

enhanced our employees’ professional skills and overall capabilities outstanding contributors further motivating innovation across our R&D

thereby laying a strong foundation for technological innovation and project teams.execution.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 33Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Technology Ethics

Technology ethics is the core value guiding our R&D and application shorten delivery cycles and propel smart upgrades in manufacturing. Its end-to-end smart production system empowers companies to move beyond

activities forming the foundation for sustainability advancement in manufacturing execution toward intelligent decision-making pioneering a new model for digital and smart tire manufacturing.science and technology. We uphold principles such as environmental

respect biodiversity protection and ecological balance throughout our

R&D processes promoting harmony between technological innovation Eco-Rubber Cloud's Green and Digital Manufacturing Practices

and environmental protection.To reduce the environmental impact of discarded tires we have

employed a lightweighting strategy including adopting a lightweight

design applying new materials and integrating new steel cord materials

in development. This allows us to produce lighter tires reducing

environmental impact while improving performance. In 2024 we Smart Scheduling Smart Manufacturing Upgrades Production Iteration and Optimization

initiated a special research project to explore using six-axis force testers

to evaluate wear performance. As a replacement for traditional road The platform overcomes the limitations Through revolutionary upgrades to key The platform integrates supplier material

tests this shift helps reduce particulate emissions from wear during the of manual scheduling by using dynamic processes such as mixing and vulcanization data with production systems enabling the

development phase. algorithms and real-time data on equipment the platform completed more than 30 smart AGV smart logistics system to automatically

status process parameters and work orders. equipment upgrade projects enabling "dark deliver materials based on production

This enables automated scheduling of semi- factory" operations in core production stages. schedules. Quality inspection data is fed back

finished building and curing processes automatically to optimize process parameters

Digital and Smart Manufacturing addressing the challenge of scheduling in creating a fully closed-loop system spanning

high-variety low-volume tire manufacturing order placement scheduling production

To accelerate digital transformation in the rubber tire industry we and supporting the shift from experience- and delivery.have launched Eco-Rubber Cloud a vertically integrated industrial based to data-driven operations.internet platform that connects all process production lines in terms

of people machines materials methods environment and testing

to improve operational management efficiency. Currently it has

achieved interconnectivity of more than 99% of devices with parallel

collection points reaching the million level and annual data collection

growth exceeding 8 billion entries. It has also enabled comprehensive

interconnection between internal operations and external partners Leading Digital and Smart Manufacturing with the World-First Rubber Tire Large Language Model

including suppliers logistics providers distributors and retail stores.Eco-Rubber Cloud facilitates core requirements like multi-tenant

management multi-cluster multi-environment support microservice In 2023 we partnered with the School of Data Science at Qingdao University of Science and Technology to launch EcoRubberChat the world's

architecture integration real-time monitoring and warning API lifecycle first large language model for the rubber tire industry. In 2024 we continued to develop and iterate the model. Built on Eco-Rubber Cloud's

management and seamless business integration—achieving integrated industrial internet and AI computing platform this large model platform offers powerful industry-specific data processing and smart interaction

platform-based and diversified operations across core businesses in capabilities. It provides comprehensive professional Q&A services across product R&D manufacturing techniques and marketing. With its

the rubber tire industry chain. advanced analytical and generative capabilities EcoRubberChat boosts efficiency in R&D and simulation testing significantly predicts market

demand and user preferences more accurately and helps deliver higher-quality products and solutions. Additionally we have deployed the

As digital transformation reshapes rubber manufacturing Eco- DeepSeek large model in a privatized environment and are actively building a dedicated knowledge base for the tire industry to create a smarter

Rubber Cloud serves as a model for smart upgrading. The platform workplace experience for our employees.integrates IoT big data and AI technologies to enable smart schedulingAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 34Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Leading Through Innovation

Sailun Group leverages EcoPoint3 as its core competitive advantage to We continued to develop premium smart products tailored to various application scenarios. Leveraging our proprietary EcoPoint3 technology we have

drive high-quality development in the tire industry through technological built a diverse product portfolio covering PCR tires TBR tires OTR tires and rubber tracks. These products are designed to meet the diverse needs of

innovation and efficient R&D. We continuously innovate premium smart electric vehicles internal combustion engine (ICE) vehicles mining equipment and extreme winter road conditions. As of the end of the reporting period

and green products advancing industrial upgrades to address diverse many of our products have achieved or even exceeded the performance levels of leading international brands earning widespread recognition in global

application needs and deliver competitive solutions for users around the benchmark tests and major industry exhibitions.world.Passenger Car Radial (PCR) Tires

EcoPoint3: Powering High-Quality Green

Development in the Tire Industry China's first EcoPoint3 SUV (Sport Utility Vehicle) winter tire with the Ice Mountain marking delivering top-tier performance by international standards

ZSR2 summer tire for the European market achieved top 10 in performance tests by Auto Bild a renowned automotive magazine

EcoPoint3 (EVEC) is a high-performance rubber material

developed using the world's first chemical rubber refining

technology. This innovation overcomes the limitations of

traditional dry mixing by enabling nano-scale dispersion of fillers

and enhanced polymer interaction. In 2016 Tire Technology

International16 magazine hailed this groundbreaking technology Truck and Bus Radial (TBR) Tires

as "liquid gold" recognizing its potential to drive a leap forward

in China's tire industry. EcoPoint3 achieves green development

across the entire value chain—from raw material substitution and MAXAM T2 EcoPoint3 Premium North American tires featuring validated and optimized tread profiles and green tire designs with rolling resistance durability and wear performance reaching top international standards

process innovation to performance enhancement—contributing

to China's dual carbon goals while reshaping China's role in the

global rubber industry and leading the way toward high-quality

development.Off-The-Road (OTR) Tires

Mining tires including wide-body dump truck tires and 63-inch giant radial tires as well as rubber tracks developed for loaders excavators and

agricultural machinery

16 Tire Technology International is an authoritative magazine in the tire industry.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 35Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

ERANGE: Showcasing Innovation at the 2024 Tire Cologne Collaborating with Xiaomi to Break New Ground in High-Performance Tires

At the 2024 Tire Cologne in Germany Sailun Group unveiled its new premium SUV tires ERANGE designed specifically for the European market. By partnering with Xiaomi Auto Sailun Group developed the PT01

With the world's first liquid-phase rubber mixing technology these tires meet the performance demands of both electric and ICE vehicles. high-performance racing tire for the Xiaomi SU7 Ultra EV. This

According to tests conducted by Auto Bild a leading German automotive magazine in Europe ERANGE tires achieve an 8% improvement in wet tire features a specialized motorsport-grade tread compound

braking and handling. This has earned it the exclusive Auto Bild mark. wide contact patch design and a high-strength carcass structure

to deliver exceptional grip performance and precision handling

meeting the rigorous demands of the SU7 Ultra. In March 2025

the Xiaomi SU7 Ultra equipped with our PT01 tires set a new track

record of 1:04.04 at the Yiche Goldenport Park Circuit in Beijing—

making it the fastest mass-production vehicle on the track. This

collaboration marks a significant milestone for Chinese tire brands

in the high-performance segment and sets a new benchmark for

the global performance vehicle market.EcoPoint3 Winter Tires: Ensuring Safe Travel

To tackle the challenges of winter driving on snow- and

ice-covered roads Sailun Group has launched its self-

developed EcoPoint3 WP81 Winter Tire Series. These tires

integrate our world-first chemical refining technology

with a proprietary tread design significantly enhancing

snow and ice traction wet braking performance and

wear resistance—all while reducing rolling resistance.The WP81 Series delivered outstanding performance

across a series of rigorous tests. In the EU ice grip test

it exceeded regulatory standards by 26%. Other results were also impressive. Compared to leading international brands WP81 reduced braking

distance on ice by 0.6 meters and improved acceleration on ice by 10%.In December 2024 Olympic champion Xu Mengtao tested the WP81 tires during our "Journey with Champions: Ice & Snow Challenge" event

praising their exceptional performance in extreme winter conditions.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 36Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

We actively explore solutions that combine EcoPoint3 with new energy As a pioneer in smart tire manufacturing and transportation safety Protecting Intellectual Property

vehicles (NEVs) to meet the growing market demand for eco-friendly we have developed industry-leading solutions through continuous

and energy-efficient products. During the reporting period we launched technological innovation. Our self-developed intelligent tire lifecycle

various NEV tire series for passenger cars trucks and buses. management system enables end-to-end digital management from Sailun Group has completed a global intellectual property (IP) portfolio

production to maintenance and leverages 5G networks to establish a covering TBR tires PCR tires and OTR tires establishing a comprehensive

real-time safety warning system—offering a replicable model for smart IP protection framework both in China and abroad. We have implemented

upgrades in the transportation sector.US71 e: EcoPoint3 PCR Tire for NEVs policies such as the Group Patent Management Regulations and Group

Trademark Management Regulations to ensure effective identification and

H igh-saturation tread and wear-resistant formulation for control of IP risks across all processes of operations safeguarding our R&D

improved durability and wet traction achievements and IP security.Driving Safer and Smarter Logistics with

N on-through grooves for reduced noise to meet NEV owners' Intelligent Tire Lifecycle Management During the reporting period we developed a patent lifecycle management

demand for both high performance and eco-friendliness system to optimize our patent workflows and enhance data standardization.This system enables digital process-based and smart management of

Sailun Group's self-developed intell igent tire l ifecycle intangible assets ensuring closed-loop control across all stages and further

management system uses built-in tire sensors and in-vehicle strengthens IP protection. To support our global expansion we integrated

receivers to collect real-time data on pressure temperature patent intelligence and infringement prevention into our R&D project 275/70R22.5 CITY PRO Z: EcoPoint3 TBR Tire for EVs

speed mileage and location. With the support of 5G networks management and other operations ensuring IP risk control throughout the

this multidimensional data is instantly transmitted to the entire process.High-saturation tread for enhanced stability lower rolling management platform and in-vehicle displays enabling real-

resistance and extended mileage time monitoring and full-process visibility.Bionic sipes for improved grip and driving force enhancing Patent Management Measures in the R&D Stage

safety and reliability while reducing noise By monitoring tire temperature in real-time the system can issue

Optimized center and shoulder block size and stiffness to early warnings for overheating risks helping prevent incidents Provide and share patent intelligence based on demand analysis

prevent uneven wear such as tire blowouts or spontaneous combustion—greatly to support R&D teams in setting development strategies and

enhancing driver and cargo safety. It also automatically detects facilitate the patenting of R&D outcomes

abnormal conditions such as overpressure under pressure and

overheating instantly triggering alerts and notifying both drivers E stablish a patent infringement screening system to assess

and dispatch centers. This significantly improves tire safety and potential risks and ensure freedom to operate for new products

CITY CONVOY e Series: EcoPoint3 TBR Tire for Electric Buses management efficiency.During the reporting period the Tire Pressure Monitoring System

New 3D sipes for enhanced grip performance on ice/snow (TPMS) was deployed across fleet vehicles operated by State

and wet roads ensuring driving safety Energy Group Zhenhai Petrochemical Logistics J&T Express As of the end of the reporting period

F ull application of EcoPoint3 for reduced heat generation and SANY Group and Conch Group—providing strong support for

rolling resistance to increase both range and tire lifespan safer and more efficient logistics operations.Total valid patents Valid software copyrights

2008116

Innovative Tire Solutions for NEVsAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 37Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Commitment to Service Excellence

Sailun Group has established a comprehensive customer service management system based on customer-first principle. We listen attentively

to customer feedback optimize service experience and continuously enhance customer satisfaction. In the face of market competition we

consistently uphold a responsible marketing philosophy. Backed by a robust compliance management system we steadily advance our brand

development aiming to create a trusted brand image.Tire Claims Specialist Qualification

Conducted by the China Rubber Industry Association / National

Rubber Tire Quality Supervision and Inspection Center; participants

who pass the final assessment receive qualification certificates as

claims specialists

Reliable Customer Service

Abnormal Tire Claims Identification

The quality of customer service is paramount to a corporation’s brand reputation and long-term customer loyalty. We continuously enhance the Monthly on-site training at factories for market service engineers

capabilities of our customer service team strengthen service quality control and optimize service experience to deliver efficient and professional focusing on identifying abnormal tire claims

services that precisely meet customer needs. By doing so we consistently enhance customer satisfaction and trust.Tire Inspection

Customer Service System Regular training for junior employees in on-site tire inspection

followed by performance evaluations

At Sailun Group customer needs are always our top priority. We have developed internal policies such as the Service Management Control Procedure

Complaint Control Procedure and Emergency Management Regulations for Major Product Risks to specify and regulate customer service standards Weekly/Monthly Meetings

complaint handling processes and emergency responses to major market risks. Discussions and analysis of issues cases and experiences from market

visits

We have created a customer service center framework around customer needs establishing both digital and on-site service platforms to manage the

entire service process online and offline. Based on product categories and service channels we have set up three service teams with defined roles and

responsibilities significantly improving the effectiveness and precision of customer service management. Monthly Technical Exchange Sessions

An online-offline customer communication mechanism is in place to ensure that every customer suggestion and request is accurately identified and Topics including updates on product development and improvementsR&D

promptly addressed. Regular market visits and customized visits to key customers are conducted to understand product application and performance market visits and road-test tire performance tracking and product

demand and anomalies

address product issues and provide specialized tire usage training for key customers. Additionally online customer support is accessible via a range

of channels including our website WeChat Official Account/mini-program mobile app 400 customer service hotline and live chat offering customers

convenient and diverse avenues for communication feedback and assistance. Employee Competency Enhancement

Group-level training initiatives such as the EcoPoint3 Special Camp

Upgraded Customer Service to improve employee capabilities

To improve our customer service we have developed a digital platform comprising both business and analytical management systems. Regular training

sessions are provided for our customer service staff to enhance their professional skills and service quality. Customer Service Training ProgramAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 38Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Customer Satisfaction Enhanced Distributor Management

In line with our Sailun Group Customer Satisfaction Measurement Management Regulations we regularly conduct customer satisfaction surveys analyze Optimizing distributor management plays a critical role in improving

results address issues and monitor improvements to ensure continuous service quality enhancement. To further elevate customer service standards service quality and capturing market dynamics. Each month our market

we set management goals that include customer satisfaction and complaint handling timeliness. During the reporting period our customer satisfaction service engineers visit our distributors and their secondary customers

scores exceeded 97 points across all three product lines successfully achieving our annual targets. and retail outlets to collect and analyze end-market trends product

feedback and service needs. We provide multiple channels—such as our

With our customer-centric philosophy in mind we have organized professional teams to work closely with customers on-site ensuring prompt responses 400 customer service hotline WeChat and live chat—for distributors and

to their needs and reinforcing their trust. their customers to submit feedback. This allows us to respond promptly

and resolve any issues that may arise.We also conduct regular training sessions on products and services

Gaining Customer Trust Through Excellent Service Quality in Mining Areas covering topics like product performance claims standards tire

diagnostics usage guidelines and service models. These sessions help

distributors better understand our offerings and processes improving

customer satisfaction and enhancing market competitiveness.Sailun Group's mining service engineers uphold a customer-first service philosophy. They stay on the frontline of mining sites to provide efficient

and professional services ensuring the stable operation of customer equipment. Despite the harsh conditions our engineers consistently deliver

expert services and demonstrate excellent coordination and technical skills. In 2024 our engineers visited numerous domestic and international

mining areas investigating vehicle conditions road types transport distances and tire usage to provide solutions and collect product usage

data. Their efforts were universally recognized by partner companies. Responsible Marketing

Sailun Group places great emphasis on the legal and compliant execution

of all marketing activities. We have established a comprehensive

compliance management framework and regularly review the conformity

of our marketing policies. Our marketing compliance management system

is continually refined with all economic contracts major decisions and

internal regulations subject to rigorous review before implementation.This approach mitigates risks at the outset and safeguards business

compliance and security.During the reporting period we continued to strengthen our "dual line

of defense" in compliance oversight. Business departments as the first

line of defense are responsible for ensuring compliance throughout the

marketing process. Meanwhile the Marketing and Legal & Risk Control

departments serve as the second line of defense for additional review.We also offer regular compliance training sessions to reinforce a culture

of responsible marketing. No violations related to marketing compliance

occurred in 2024.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 39Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Brand Development

We have established a comprehensive branding strategy covering brand classification structure positioning visual design protection mechanisms Shining at Paris Olympics to Elevate Chinese Brands

communication strategies and evaluation systems. These efforts aim to enhance brand influence consolidate market presence and ensure the sustained

growth of brand value. To prevent and address potential brand crises we have developed a Brand Crisis Management Manual and set up crisis warning

and rapid response mechanisms to improve risk awareness and response capabilities. In 2024 Sailun Group's EcoPoint3 advertisement aired during the

Paris Olympics including the opening and closing ceremonies as

With an ambition to become a leading high-end Chinese brand we continue to strengthen our youthful and premium brand image through innovative well as live and rebroadcast events—bringing Chinese innovation

and diverse communication strategies enriching our brand narrative and fostering stronger connections with our users. At the same time we actively and quality to a global audience. During the Games we were also

participate in international industry events to expand our global reach and enhance our brand's international influence. featured in China Media Group's special program recommending

Chinese brands to the world with guests including our Chair

Olympic champions and industry experts. Together they explored

the rise of China's tire industry. With EcoPoint3 as the centerpiece

Chair Liu shared Sailun Group's journey of technological innovation

Promoting "Guochao" Culture and Showcasing Innovation Capabilities and global expansion.During the reporting period Sailun Group was recognized as a "Guochao" brand (a term referring to trendy Chinese brands) in an integrated

media campaign by China Media Group spotlighting "Guochao" brands. We were also featured during the live broadcasts of the UEFA Euro

2024 tournament. In collaboration with CCTV News we launched a special livestream program showcasing the innovative technology behind

our EcoPoint3 tires and highlighting self-developed products such as the world's largest 63-inch giant radial tire winter tires and sustainable

material tires. These efforts demonstrate our practices in technological innovation and green manufacturing.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 40Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Supply Chain Management Supplier Assessment

Sailun Group recognizes that a strong and resilient supply chain is key to achieving sustainable development. To this end we continuously optimize We implement classification and tiered management in accordance with

our supplier management system ensuring supply chain stability while fostering partnerships that uphold social responsibility and contribute to a our Supplier Management Regulations. Suppliers are categorized by

sustainable supply chain ecosystem. business type—manufacturers production plants agents and traders—

and further classified based on material criticality into Tier 1 (critical

materials) and Tier 2 (non-critical materials) suppliers.We conduct routine audits at varying frequencies based on the previous

Full Lifecycle Supplier Management year's assessment results for each tier. These audits comprehensively

assess supplier performance to ensure ongoing compliance. Additional

Sailun Group strictly complies with the Government Procurement Law of the People's Republic of China and the Tendering and Bidding Law of the audits may be triggered by issues identified during operations or

People's Republic of China among other applicable laws and regulations in the regions where we operate. We have developed internal policies such as reviews or by requests from departments such as procurement quality

the Procurement Control Procedure Supplier Management Regulations and Procurement Management Regulations which define the details of supplier and R&D.lifecycle management and procurement control processes to provide a solid institutional foundation for supplier management and procurement.At year-end we calculate weighted scores based on all audit results and

adjust supplier ratings accordingly. These ratings guide our partnership

Supplier Onboarding strategies encouraging suppliers to improve internal management and

contributing to a more robust and stable supply chain.We have developed a comprehensive supplier onboarding evaluation process. All suppliers are required to provide relevant certifications based on the

type of materials supplied. For key reinforcement material suppliers third-party certification under IATF 16949 is mandatory while non-key material

suppliers must hold ISO 9001 certification. Certificate reviews are carried out periodically to ensure validity. Once a list of potential suppliers is proposed

we conduct thorough assessments based on Production Part Approval Process (PPAP) requirements ensuring that materials meet quality standards and

that suppliers have the capability for stable long-term production.Score-Based Evaluation of Potential Suppliers Quality Testing of Supplier Samples PPAP Audit and Supplier Approval

Based on the VDA 6.3 standard17 we conduct comprehensive We conduct progressive quality testing of Suppliers that pass score-based evaluations and

score-based evaluations of potential suppliers’ overall supplier samples including small-sample reviews sample testing proceed to PPAP audits where

capabilities and risk resilience. These evaluations cover large-sample evaluations and trial production. we review production documentation product

areas such as business qualifications project management Simulated real production environments are used consistency and control point stability. Qualified

product development supplier management and to assess product stability at scale ensuring suppliers are officially added to our supplier list.manufacturing process management. quality compliance.Supplier Onboarding Process

17 V DA 6.3 standard: A normative document developed by the German Association of the Automotive Industry (VDA) that outlines quality management system

requirements for the automotive sector.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 41Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Supply Chain Quality Management Supplier Quality Empowerment Sustainable Procurement

We manage the quality of incoming materials according to our Raw Each year we implement quality standards across all stages of supplier Sailun Group is committed to sustainable procurement by integrating

and Auxiliary Materials Control Procedure covering all stages from pre- management through formal agreements email reminders verbal ESG principles into supply chain management. We aim to build a green

storage preparation warehousing sampling inspection and in-storage communication and online or offline training sessions ensuring all our and responsible supply chain while encouraging suppliers to enhance

handling to final release. Every batch of raw and auxiliary materials is suppliers fully understand our quality standards. their performance in human rights environmental protection and

subject to lab testing and only those passing inspection may enter safety management. Our Sustainable Procurement Policy outlines clear

storage. Based on the type of material and severity of quality issues we During the onboarding phase we emphasize quality standards when requirements for suppliers in areas such as environmental stewardship

classify non-conformities into three levels. If materials fail inspection signing the Quality Assurance Agreement with each supplier. In the audit health and safety business ethics and labor rights protection.we follow our Non-Conforming Raw Materials and Tire Components phase we conduct annual quality training for supplier employees evaluate

Disposal Management Procedure by issuing non-conformance notices their quality management systems and human resources management During the reporting period we issued the Sustainable Natural Rubber

communicating quality standards and requiring suppliers to complete procedures and guide them in improving quality performance. For suppliers Policy which explicitly requires natural rubber suppliers to uphold strict

corrective actions and submit 8D reports18 or corrective action reports who fail to meet our quality standards we arrange expert consultations human rights principles and prohibits any human rights violations.within the specified timeframe. coaching and rectification to address issues of non-compliance. For key The policy also sets high environmental standards to ensure that no

suppliers we initiate capability-building programs. During the reporting procurement activities have a negative environmental impact. We

To strengthen supply chain management and ensure quality from the period 233 quality issues were identified across 106 suppliers. We oversaw continuously monitor progress in sustainable rubber sourcing and

source we sign Quality Assurance Agreements with suppliers. Suppliers their root cause analysis and ensured the completion of corrective actions. actively support suppliers in their sustainable transformation striving to

are required to apply Sailun Group's quality standards to their own build a stable eco-friendly and human rights-conscious supply chain

procurement activities and conduct regular quality audits. They are also In day-to-day operations we also provide targeted quality training for ecosystem.encouraged to provide internal training on quality topics such as ISO key suppliers every year. During the reporting period we organized

9001 problem-solving techniques and skills development ensuring the 30 dedicated training sessions totaling 56 hours covering topics such

implementation of quality management requirements and standards. as quality standards and awareness to strengthen suppliers' quality

During the reporting period all our raw material suppliers signed the management capabilities and their employees' quality awareness.Quality Assurance Agreements.Strengthening Quality Training for Stable Advancing Sustainability in the Rubber

During the reporting period Supply Chain Quality Industry as a GPSNR Member

100 In 2024 we delivered specialized training to the cord fabric In 2024 Sailun Group joined the Global Platform for Sustainable % workshop employees of key suppliers covering preventive Natural Rubber (GPSNR) as a member. GPSNR is an international

measures and control plans for quality issues related to cords organization dedicated to improving the social economic and

of our raw material suppliers signed the and packaging. The training helped production teams identify environmental performance of the natural rubber supply chain.Quality Assurance Agreements

quality risks and implement preventive measures to ensure Under GPSNR's policy framework we will embed sustainability

stable and high-quality output. Participants were assessed principles into our supply chain management and work with

after training achieving a 100% pass rate. stakeholders across the global natural rubber value chain to

drive sustainable development throughout the industry.

18 8D refers to the "8 Disciplines Problem Solving" methodology which includes

the following steps: D1: Establish the team; D2: Describe the problem; D3:

Implement interim containment actions; D4: Define root causes; D5: Choose

and verify permanent corrective actions; D6: Implement permanent corrective

actions; D7: Prevent recurrence; and D8: Congratulate the team.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 42Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sailun Group has established a procurement risk management system to enhance the stability and flexibility of its supply chain while reducing Sustainable Supply Chain Audits

procurement-related risks. We identified seven risk categories across our supply chain. For each category we have developed emergency response plans

and mitigation procedures and continue to monitor potential risks at all stages. Both short-term emergency measures and long-term contingency plans

are in place for high-risk items and critical materials. Meanwhile we continue to optimize our supply chain by adopting dual-sourcing strategies and We require all suppliers to commit to local labor laws and corporate

building a multi-supplier network. Through backup suppliers and emergency supplier onboarding mechanisms we ensure stable transportation and social responsibility (CSR) standards and receive regular evaluations

inventory of critical materials enhancing our resilience to procurement-related risks. based on our CSR criteria. If any supplier is found to be employing child

labor prison labor or forced labor we will immediately terminate the

partnership and demand thorough rectification.Transportation Supply- Policy Risk

Risk Demand Changes in We conduct regular investigations and assessments of our suppliers using

Delivery timelines Mismatch national policies

(e.g. export tax the EcoVadis framework focusing on four key areas: social responsibility cargo safety Capacity

rebates anti- environment labor and human rights and business ethics. All suppliers and supply

imbalance dumping duties) are required to sign the Supplier Code of Conduct and encouraged

demand shifts to commit to reducing toxic emissions such as nitrogen oxides (NOx)

and volatile organic compounds (VOCs) ensuring compliance with

environmental regulations and taking proactive actions. We also

Supply Market Risk Compliance Force guide our suppliers to reduce waste emissions and provide necessary

Disruption Raw material Risk Majeure environmental data regularly. As of the end of the reporting period 558

Risk price Supplier Supply landscape suppliers had signed the Supplier Code of Conduct.fluctuations

Supply delays violations of change due to wars raw material

quality issues laws or ethics extreme weather shortages events etc.Identified Supply Chain Risk Categories

Driving Sustainable Supply Chain Transformation in Response to EUDR

In response to the global climate crisis and the need for ecological protection the EU passed the EUDR in 2019. This regulation requires

companies to establish an end-to-end compliance system covering raw material sourcing production transportation and export. It also

mandates comprehensive environmental due diligence across the entire supply chain to ensure sustainability.To meet these requirements Sailun Group established a cross-functional task force involving the supply chain quality management and legal

departments to drive compliance system reconstruction and digital traceability upgrades. We have established a raw material segregation

management policy and introduced a lifecycle traceability coding system to enable end-to-end visibility from orders and production to logistics.In terms of supply chain management we have optimized our tiered onboarding system by conducting on-site audits on environmental

protection and labor conditions among other dimensions in sourcing regions such as Southeast Asia and Africa. We have also developed

standardized self-assessment tools and documentation templates to accelerate supplier certification processes. Through our sustainable supply

chain governance model we have strengthened both operational efficiency and green competitiveness within our compliance framework laying

a solid foundation for navigating global trade competition and advancing our supply chain's transition to sustainability.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 43Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Labor and Human Rights Supplier Empowerment

A ssessment criteria: Covers human resource management (health and

safety working conditions social dialogue career development and

training opportunities) and human rights (child labor forced labor and Sailun Group attaches great importance to maintaining close partnerships with suppliers through diverse communication channels. We encourage

discrimination). suppliers to report any violations found in the procurement process. With an open and cooperative approach we uphold fair and open procedures and

Focus areas: EcoVadis places emphasis on health safety and non- standards to ensure transparent procurement and equal treatment of small and medium-sized enterprises (SMEs). During the reporting period there

discrimination particularly for companies in high-risk industries or were no overdue payments to SME suppliers.countries.Supplier requirements: Provide evidence such as policies prohibiting child On top of that we regularly organize technical exchange meetings with suppliers to facilitate in-depth communication and provide them with support.and forced labor copies of labor contracts and protection policies for During the reporting period 30 such technical exchange meetings were held. To enhance our suppliers' sustainable supply chain capabilities and support

underage workers to demonstrate compliance. their sustainability management we regularly conduct ESG-themed training for both our procurement teams and suppliers. During the reporting period

three internal training sessions were conducted for procurement staff covering topics such as sustainable material sourcing procurement ethics and

Environment ESG knowledge. A total of 210 participants were recorded.Assessment criteria: Focuses on the environmental impact of business

operations including energy consumption use of chemicals and product

lifecycle.Focus areas: Environmental measures taken by suppliers such as energy During the reporting period

conservation waste reduction toxic emission reduction and product

recycling.S upplier requirements: Disclose environmental initiatives aimed at 30 3 with a total of

minimizing the negative impact of operations.supplier technical exchange meetings internal training sessions were 210 attendances

were held conducted for procurement staff

Sustainable Procurement

A ssessment criteria: Evaluates the sourcing of raw materials production

processes and CSR management systems within the supply chain.Focus areas: Working conditions for labor involved in material service Building a Sustainable Future Together Through ESG Training

and component production and actions taken for sustainable sourcing.S upplier requirements: Adopt sustainable practices in raw material sourcing

production and supply chain management to ensure sound working

conditions and responsible actions. During the reporting period we conducted 23 ESG-themed training sessions for suppliers

totaling 30 hours. These sessions focused on supply chain sustainability covering topics

Business Ethics such as ESG standards and practices CSR business ethics and anti-corruption case studies. Over 300 representatives from raw material auxiliary material and component

Assessment criteria: Covers issues such as corruption bribery anti- suppliers participated through in-person seminars live-streamed sessions and case-based

competitive behavior fair marketing and confidentiality. discussions. These training courses have continuously enhanced supplier competencies

Focus areas: Adherence to ethical conduct in business operations. strengthened ESG practices and performance across our supply chain and contributed to

S upplier requirements: Provide evidence of ethical and corruption-free building a more sustainable future together.practices in business activities and implement measures to prevent anti-

competitive behavior.Assessment Dimensions Based on EcoVadisECO-PLANET:

Shaping the Future of

Sustainable Growth

Sailun Group has consistently integrated the philosophy of green

development into its operations striving to be an advocate and

practitioner of low-carbon initiatives. With great importance placed

on the environmental impact of our operations we have continuously

improved our environmental management system and strengthened

pollution control to reduce negative environmental effects. We focus

on efficient resource use and the protection of natural ecosystems

while actively responding to the challenges of climate change. Through

concrete actions we are driving a green transition and working with all

stakeholders to protect clean air and water co-building a sustainable

future for humanity.Responding to the following indicators and targets

SSE Guidelines:

Climate response Pollutant discharge Waste disposal Ecosystem and

biodiversity protection Environmental compliance management Energy

utilization Water resources utilization Circular economy 03

UN SDGs:

Environmental Management

Green Operations

C limate ResponseAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 45Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Environmental Management

Sailun Group is committed to building a robust environmental management system. Through compliant emissions management we ensure our production

emissions strictly meet environmental standards. We aim to minimize the environmental impact of our operations actively fulfill our environmental

responsibilities and contribute to a sustainable future.Management System Strategy and Sustainable Development Committee

Responsible for Group's environmental management strategy and performance; studies

sustainable development strategies; advances the development of environmental management

We strictly comply with applicable environmental systems; and oversees the research and decision-making of environmental strategies

laws and regulations in our operating regions in-

cluding the Environmental Protection Law of the

People’s Republic of China the Law on Environmen-

tal Protection and Natural Resource Management of Group Sustainable Development Leadership Team

Cambodia and the Law on Environmental Protec-

Develops the Group's medium- and long-term sustainable development plans including

tion of Vietnam. Internally we have established poli- environmental goals; reviews the Group's commitments to key environmental topics;

cies such as the Environmental Occupational Health oversees environmental performance; identifies significant environmental risks and

and Safety Management Manual and Environmental opportunities of Group businesses; and proposes corresponding actions

Safety Control Procedure to provide comprehensive

guidance for environmental management.We have developed a clear multi-tier environmental Production System Sustainable Development Working Team

management structure composed of the board-lev-

el Strategy and Sustainable Development Commit- Implements the Group's environmental strategic goals; designs and executes annual

tee the Group Sustainable Development Leadership environmental tasks for the production system; guides supervises and inspects energy management and environment health and safety (EHS) management across factories;

Team the Production System Sustainable Develop- and completes environmental disclosure reporting and document editing and submission

ment Working Team and Sustainable Development

Working Teams across our factories. This system

spans strategic planning implementation supervi-

sion and assessment ensuring effective advance- Sustainable Development Working Team at Each Factory

ment and execution of environmental initiatives.Serve as execution units to fulfill the requirements set forth by the Production System

Sustainable Development Working Team implement environmental management tasks

and cooperate with higher-level guidance supervision and inspections

Environmental Management StructureAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 46Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Additionally we have established and implemented an efficient

environmental management system aligned with the ISO 14001 standard

and we have actively advanced environmental management system

certification across our production sites. As of the end of the reporting

period all seven of our factories have obtained ISO 14001 certification

achieving 100% coverage.As of the end of the reporting period

100%

of operational factories obtained ISO 14001 certification

Qingdao Factory Dongying Factory Shenyang Factory

Weifang Factory Vietnam Factory ACTR Factory Cambodia FactoryAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 47Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Compliant Emissions

To track our progress and outcomes in environmental management we Sailun Group places compliant pollutant management and discharge as

have developed the Monitoring and Measurement Control Procedure a core principle of its environmental management system. We strictly

which incorporates key environmental performance factors—such as adhere to applicable laws regulations and standards on pollutant

pollutant emissions emissions compliance rate and climate change emissions in all our operating regions. We have formulated management

response—into senior management's performance assessments and regulations for several types of pollutants including the Wastewater

their compensation incentive system. We continuously monitor key Management Control Procedure Waste Gas and Dust Management

environmental aspects and risks and periodically conduct assessments Control Procedure and Solid Waste Management Control Procedure to

of our performance against established environmental indicators. If ensure that every stage—from generation to discharge—is effectively

these assessments identify a decline in environmental performance we monitored and managed.may reduce the executive compensation incentive system accordingly.We have set environmental goals in areas such as environmental Wastewater Management

management and emissions energy use resource utilization and carbon We strictly comply with the Water Pollution Prevention and Control Law of

emissions. To achieve these goals we have conducted environmental the People's Republic of China and local wastewater discharge standards

risk assessments at all operational factories to prevent environmental to ensure compliant wastewater treatment and discharge across all our

risks during production. After identifying on-site environmental aspects operations. Our main types of wastewaters include circulating water

we implement controls for both significant and general risks and blowdown and domestic sewage. Factories with in-house wastewater

conduct ongoing monitoring and management. All seven factories also treatment stations utilize processes like sedimentation aerobic and

conduct regular self-monitoring to ensure emissions and environmental anaerobic treatment and filtration to ensure compliant discharge. For

risks remain under control. Emergency response plans are in place to factories without in-house treatment stations wastewater is processed

address potential environmental incidents. by sewage treatment plants to meet discharge standards. Each factory

implements a comprehensive wastewater management strategy to

We conduct annual internal environmental impact audits in accordance

ensure compliant discharge. During the reporting period all wastewater

with ISO 14001. These include review meetings and comprehensive on-

discharges complied with applicable local laws and regulations.site assessments to ensure operational procedures across all locations

meet ISO 14001 standards. For example our Dongying Factory

conducted an internal environmental audit in April 2024 identifying 794 Waste Gas Management

environmental aspects—18 significant and 778 general.In terms of waste gas management and emissions we fully comply with

We also undergo comprehensive annual audits of all seven operational the Atmospheric Pollution Prevention and Control Law of the People's

factories by third-party auditors in accordance with ISO 14001. These Republic of China and local emission standards. Both physical and

external reviews help ensure the effectiveness of our environmental chemical methods are applied to ensure that waste gases like VOCs and

management system. During the reporting period no environmental particulates generated during production are discharged in compliance.penalties were recorded across our operations. All seven factories

passed the annual ISO 14001 audit. Additionally all our air treatment systems are equipped with online

monitoring devices that transmit data to environmental authorities

enabling real-time oversight and precise control. During the reporting

period all waste gas emissions complied with applicable local laws and

regulations.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 48Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Solid Waste Management

We strictly comply with applicable local laws regulations and policies on solid waste management. We have developed science-based classification methods and compliant handling procedures to ensure full control over the

generation storage and transfer of hazardous waste. Qualified third-party organizations are engaged to conduct compliant treatment. Specifically general solid waste is handled by licensed local agencies through waste-to-energy

incineration or material recycling. For hazardous waste factory-specific management plans are in place to reinforce full-lifecycle control including maintaining tracking records using standardized transfer manifests and ensuring

traceability throughout the process. Meanwhile all hazardous waste is transferred to certified third-party organizations for compliant disposal.Alongside compliant management we set quantitative waste reduction targets with a clear goal to reduce waste generation by 1200 tonnes in 2024. Meanwhile we implement factory-wide reduction plans across all operations.Various initiatives are conducted to enhance waste recovery and reuse. For general waste we reduce rubber scrap by optimizing production processes and installing rubber shredding units. For hazardous waste we reduce generation

and achieve efficient reuse through innovations like filtration and purification technologies and waste oil recovery units. During the reporting period our seven operational factories collectively reduced nearly 1300 tonnes of hazardous

waste further lowering the volume of hazardous waste for disposal and lessening environmental pollution and ecological burden. In 2024 we successfully achieved our annual waste reduction target.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 49Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Green Operations

Sailun Group focuses its green operations on three key areas: resource conservation Conducting Water Conservation Training to Enhance Awareness

green office practices and biodiversity protection. Through refined resource

management eco-friendly workplace initiatives and active ecological conservation

we are building a sustainable operational model to fulfill our environmental

responsibilities. To improve the efficiency of water resource management we actively

conduct water conservation training and publicity activities. During the

reporting period our training sessions on water treatment processes

covered the principles applications and operational precautions of each

stage enhancing water conservation awareness among our employees.On World Water Day (March 22) we launched large-scale water-saving

Resource Conservation campaigns across our factories. Posters and other promotional materials 非原

helped raise employees' awareness of water conservation and strengthen

Sailun Group integrates resource management and conservation across all aspects of their sense of responsibility for protecting water resources.its production and operations. We are committed to innovations in water and packaging

resource management enhancing resource efficiency through actions such as recycling

resource reuse and packaging technology development and innovation. These efforts

lay a solid foundation for our green and low-carbon development.Water Resources

We have established internal management policies such as the Water Resource

Management Policy and Water Quality Control Standards to regulate the use and

management of water resources. These documents define key indicators such as

ion concentration limits and standards for water replacement and replenishment

ensuring that water resources are rationally allocated and efficiently used.Building on these institutional foundations we have launched water recycling and

reuse projects that have significantly improved water utilization efficiency and

delivered notable water-saving outcomes. By optimizing circulating water quality

we have mitigated scaling and corrosion extended equipment lifespan and reduced

the frequency of water replacement—thereby improving overall water management

efficiency.Additionally we conduct water conservation training and publicity activities to further

strengthen employee awareness and engagement nurturing a workplace culture that

promotes water-saving practices.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 50Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Packaging Materials Developing Automated Packaging Machines to

Improve Efficiency

To reduce packaging material consumption in tire products we are committed to improving packaging material efficiency through innovative practices.These include adopting recycling and reuse strategies incentivizing suppliers to use recycled packaging materials and developing fully automated

packaging machines to reduce material waste. We also launched a recycling and automated feeding improvement project for waste wood to enhance To further enhance packaging material efficiency our Qingdao

reuse rates creating economic value while contributing to sustainable social development. Factory developed a fully automated packaging machine.By integrating barcode positioning automatic film traction

and wrapping automatic tape application and cutting and

automated PVC film cutting this equipment automates the

entire tire packaging process.Improving Resource Efficiency Through Recycling and Reuse

Sailun Group actively promotes the recycling and reuse of packaging materials. Our factories recover a wide range of materials including plastic

pallets transport boxes and empty steel spool boxes. As of the end of the reporting period our seven factories had collectively recycled

approximately 18936 tonnes of plastic sheeting. Additionally more than 60000 empty steel spool boxes 110000 transport boxes 140000

pallets 40000 bead wire reels and 20000 steel spools were recycled across all factories effectively advancing the circular use of resources and

supporting environmental sustainability.Plastic Sheeting Reuse Pallet Recovery Transport Box Recycling Steel Reel Recycling Fully Automated Packaging MachineAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 51Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Green Office Practices Biodiversity Conservation

Building on optimized resource utilization in production Sailun Group Sailun Group places great importance on biodiversity conservation during

integrates green and low-carbon principles into daily operations. We project development construction and operation. We strictly comply

implement resource conservation and improve resource efficiency across with ecological conservation red lines environmental quality benchmarks

all aspects of operations aiming to create a low-carbon green operational and resource utilization caps—by implementing ecological environmental

model. access lists and taking ecological restoration measures to minimize

our projects' environmental impact. All new projects must conduct

During the reporting period our green office practices were strengthened environmental impact assessments during the development phase.through various initiatives. We promoted energy conservation emission Qualified third-party organizations assess the surrounding areas of

reduction and green office concepts through multiple channels proposed factory sites to ensure a balanced development of the project

encouraging eco-friendly habits such as double-sided printing switching and the ecological environment. Additionally we continuously monitor

off lights after use saving water and sorting waste. An online office wastewater waste gas and other emissions during operations to ensure

platform was created to reduce paper usage and improve office efficiency. compliance with discharge standards and prevent any adverse impact on

A flea market campaign was also organized to facilitate material reuse the local ecological environment.embedding the principles of green office practices and sustainability into

our corporate culture. In tire development we regularly monitor biodiversity impacts and

implement tiered controls over the use of heavy metals. In strict

compliance with international ecological standards we prioritize heavy

metal-free formulations and eco-friendly additives. We have also

established a comprehensive traceability system by setting thresholds for

trace elements like lead cadmium mercury and hexavalent chromium.Through careful material selection process improvements and other

technologies we control the risk of heavy metal migration within

ecological safety limits ensuring that the impact on soil microorganisms

and aquatic life throughout the tire's lifecycle stays within the natural

remediation capacity. Furthermore we design preventive indicators to

protect the material circulation balance in biological habitats maintaining

ecosystem diversity and stability to foster sustainable development.In support of China's ecological civilization development our Shenyang

Factory continued its greening initiative in 2024. We selected tree species

that offer both ecological value and visual appeal establishing composite

plant communities around the factory. Notably several peony crabapple

trees were planted along the main roads to create a floral corridor

accompanied by northern fruit trees and ginkgo trees that add seasonal

charm to the landscape. Around the production area wax myrtle trees

were arranged to form a green hedge serving as a natural barrier that

Publicity of Green Office Practices supports the stability of the surrounding ecosystem.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 52Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Climate Response

Sailun Group regards climate change response as a critical mission for achieving sustainable development. We have established a comprehensive

governance system to ensure full oversight of climate-related matters. These efforts include regularly identifying climate-related risks and Board of Directors

opportunities and developing strategic actions across the entire process to implement carbon reduction measures. We have also set clear indicators

and targets to monitor the effectiveness of these measures further enhancing our climate resilience. Holds the highest governance and oversight authority on

climate-related matters

Strategy and Sustainable Development Committee

Governance

Monitors and evaluates the Group's long-term strategy for tackling

We have established a multi-tier sustainable development governance structure which integrates climate-related oversight and management climate change and supports the Board in decision-making and

responsibilities to ensure an effective response to climate change challenges. The Board of Directors holds the highest level of oversight regarding climate- oversight

related matters supported by the Strategy and Sustainable Development Committee for decision-making. The Sustainable Development Leadership Team

reviews climate performance and proposes response measures the Strategic Management Office of Sustainability drives the implementation of these Sustainable Development Leadership Team

measures and coordinates the achievement of climate-related goals and the Sustainable Development Working Team executes action plans and provides

periodic progress updates. R eviews the Group's performance on climate-related issues and

proposes measures for managing climate risks and opportunities

Strategic Management Office of Sustainability

D rives the implementation of climate risk response measures

and organizes actions to achieve climate goals

C onducts organization-level greenhouse gas verification and

product carbon footprint verification

Develops policies for tackling climate change establishes a

climate risk management structure and identifies climate-

related risks and opportunities

Sustainable Development Working Team

Implements the Group's climate change action plan and periodically

reports progress to the Strategic Management Office of Sustainability

Climate Governance StructureAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 53Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Strategy

Sailun Group consistently monitors changes in geographical and climatic information while regularly identifying and analyzing climate-related risks and opportunities in line with regulatory policy updates. By assessing the potential

impacts of these risks and opportunities we have developed comprehensive response measures aimed at mitigating adverse effects on our business operations and seizing potential sustainable development opportunities. The key

climate risks and opportunities identified during the reporting period are outlined below:

Risk/ Risk/

Opportunity Category Item Impact Response Measures Opportunity Category Item Impact Response Measures

Significantly increased Establish more flexible collaboration mechanisms Use clean energy during

Increased precipitation supply chain disruption with suppliers and logistics companies Growing Low-carbon eco-friendly

extreme weather risk especially in raw

production to reduce carbon

Implement multi-channel procurement to market demand high-performance Chronic risks events rising average material supply and

emissions

logistics potentially causing reduce the risk of relying on a single source

Products and for high- products can enhance

services performance market competitiveness Improve resource efficiency to temperatures production delays and cost Adjust production schedules to adapt to climate eco-friendly leading to higher market lower production costs and

increases change products share and profits collaborate with suppliers to

enhance resource utilizationDevelop emergency response plans establish

response mechanisms and conduct regular U se clean energy during

Physical Risks

Potential disruptions to emergency drills Increased use production to reduce carbon

logistics and the stability of Strengthen infrastructure construction including Energy and of clean energy

Reduced energy emissions

reinforcing structures installing flood barriers resource and improved consumption lower the supply chain; damage energy costs and less Improve resource efficiency to

Acute risks Typhoons floods droughts to infrastructure such as

and optimizing drainage systems efficiency resource lower production costs and

warehouses and factories P urchase generators for sewage and stormwater efficiency

environmental impact

collaborate with suppliers to

leading to higher repair and stations to prevent power supply interruptions enhance resource utilization

maintenance costs during extreme weather events Opportunities B uild a flexible supply

Ensure stable raw material supply to avoid Reduced negative chain system to cope with

shortages caused by disasters Enhanced impacts of extreme uncertainties arising from

climate change

Carbon emission ability to weather and resource Increased investment to meet Increase investment in emission reduction Resiliencemanagement energy respond to shortages on the supply

Regularly identify and assess

technologies and equipment

Policies and structure transformation new regulatory requirements; climate change chain production and the impact of climate change

laws and other related policies failure to meet policies and

C ollaborate with suppliers and customers to operations risks and develop response

and stricter environmental standards may increase develop green supply chain prioritizing low- strategies

standards business interruption risks carbon suppliers Closely monitor market trends

Existing technologies may not Growth in Increased market and adjust product strategies

align with low-carbon and tire demand demand can to meet market demandTechnological Improve product design optimize

Technology transformation driven environmental development

Market driven by the enhance our brand

manufacturing processes and transition to low- Actively promote eco-friendly

trends potentially resulting adoption of competitiveness and tire products and strengthen

Transition Risks and by new environmental carbon technologiesin non-compliant products NEVs growth potential brand building to expand innovation standards and damage to brand image Collaborate with suppliers to develop new market sharerequirements and reduced market technologies and materials

competitiveness

Increasing environmental Collaborate with suppliers to optimize cost

awareness among Failure to meet this demand structures

Market consumers leading to may negatively affect market

Seek cost control methods to improve market

higher demand for low- competitiveness and market competitiveness

carbon eco-friendly share S tay updated on market demand changes drive

technologies product R&D and design to meet market needs

List of Climate Risks and OpportunitiesAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 54Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

To address climate change risks and seize potential development opportunities we actively advance low-carbon management across our supply chain step up energy-saving and emission-reduction efforts in production and intensify

the promotion of green products. This continuously enhances our resilience in responding to climate change risks injecting new growth momentum into our low-carbon transition.Low-Carbon Supply Chain Management Energy Conservation and Emissions Reduction in Production and Operations During the reporting period

Through forward-looking climate risk assessments closer collaboration Sailun Group is firmly committed to green low-carbon development in support of China's dual carbon the Group reduced carbon emissions by

with suppliers and green low-carbon transformation initiatives we strategy. We have adopted digital systems to regulate energy use and management increased the use

actively address climate-related risks in our supply chain driving of renewable energy and advanced energy-efficient equipment upgrades. By identifying energy-saving 208600

sustainable optimization to build a greener more resilient supply chain opportunities across our operations—from production to office activities—we have continuously improved tonnes

system. overall energy efficiency reduced carbon footprint.Climate Risk Management in Supply Chain

* Strengthening Our Energy Management System

C onduct regular risk assessments across our supply chain to

identify critical areas vulnerable to climate change and enhance We strictly comply with the Energy Conservation Law of the People's Republic of China the Environmental Protection Law of the People's Republic of

overall resilience China and other applicable laws and regulations at our operating locations. In line with GB/T 23331-2020 Energy Management Systems—Requirements

with Guidance for Use we have established an Energy Management System Manual and related procedures. Through systematic and standardized Optimize our supply chain by diversifying suppliers and logistics management practices we continue to enhance energy efficiency and reduce energy consumption. In our Energy Baseline and Performance Parameter

routes reducing dependency on single sources or pathways Control Procedure we define the development of annual energy baselines specify the breakdowns of energy performance targets and integrate energy

In extreme weather events prioritize the transportation of critical indicators into staff performance evaluations to ensure accountability for energy efficiency and drive overall improvement.materials and urgent orders to mitigate disruptions caused by

climate risks Our energy management structure includes top management management representatives energy management teams and local functional

departments each with clearly defined responsibilities to ensure system-wide implementation. The system spans planning implementation inspection

and improvement supporting ongoing optimization of our energy management performance.All seven factories have obtained ISO 50001 energy management system certification. We have also equipped energy measuring instruments in

Strengthening Green Supply Chain Management accordance with GB 17167-2006 General Principle for Equipping and Managing of the Measuring Instrument of Energy in Organization of Energy Using

achieving 100% coverage for key energy-consuming equipment. Additionally all four of our China-based factories were certified under the ISO 10012 Set supply chain climate management goals and action plans measurement management system improving the transparency and accuracy of energy management and laying a solid foundation for optimizing energy

periodically reviewing progress and reporting to stakeholders use and accomplishing energy conservation and emission reduction targets.C ollect and monitor suppliers' carbon emissions data and product

carbon footprints to manage upstream emissions

Prioritize partnerships with environmentally responsible and

low-carbon suppliers incorporating carbon performance As of the end of the reporting period

indicators into supplier onboarding evaluation and performance

assessments

C ollaborate with suppliers to jointly develop climate strategies 100%

and plans and support their green certifications or carbon

reduction initiatives of operational factories obtained ISO 50001 certificationAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 55Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

* Comprehensively Driving Energy Conservation and Consumption Reduction * Adopting Clean Energy

Guided by the sustainable development goals Sailun Group has been earnestly promoting efficient energy consumption management and implementing In line with our commitment to clean energy we continuously increase the

energy conservation and consumption reduction measures. We have established an Energy Management System (EMS) adopting an automated share of renewables to drive our transition toward green energy adoption.informatized and centralized control mode to achieve full-spectrum monitoring and management of energy consumption significantly improving the During the reporting period our Qingdao and Cambodia factories

management and efficiency of energy consumption. Meanwhile through the innovation of waste heat recovery technology and the improvement of consumed 16500 tonnes of biomass equivalent to a reduction of 24741

process we have achieved remarkable energy-saving results. tonnes of carbon emissions. This significantly lowered our greenhouse

gas and pollutant emissions. In 2024 new photovoltaic (PV) systems were

Enhancing Energy Management Through EMS commissioned at our Dongying and Weifang factories generating a total of

43.48 million kWh of solar electricity equivalent to avoiding 23333 tonnes

of CO2 emissions. These efforts have effectively supported our transition

from fossil fuels to a cleaner energy structure.Through the EMS we collect monitor and analyze energy data while tracking real-time consumption of

energy sources such as gas water electricity and steam.The EMS also enables comprehensive management of energy equipment enhances decision-making

through cross-departmental information sharing and provides online energy quality monitoring to

ensure stable and safe energy use. This system has helped our factories make notable progress in energy

conservation and emissions reduction. Interface of Comprehensive Energy

Management System (EMS)

Utilization of Steam Waste Heat in Rubber Drying Weifang Factory's Rooftop PV Project Dongying Factory's Rooftop PV Project

Guided by the energy cascade utilization philosophy Qingdao Plant adopted flash steam generated by the power system to replace fresh steam

for rubber drying during non-cooling seasons achieving effective recovery of waste heat resources. This initiative saves approximately 1260 * Strengthening Energy Conservation Awareness

tonnes of fresh steam annually equivalent to reducing CO2 emissions by about 380 tonnes. At Dongying Plant the installation of jet fans in the

rubber drying room enabled the use of hot air instead of fresh steam resulting in annual savings of around 900 tonnes of steam and a reduction Beyond action Sailun Group emphasizes cultivating a strong energy-

of approximately 270 tonnes of CO emissions. saving mindset across the organization. During the reporting period 2

our Qingdao Factory conducted nine energy conservation training

sessions through a combination of online and offline formats. Experts

in thermodynamics and metrology were invited to provide guidance to

Zero-Gas-Consumption Retrofit of Centrifugal Air Compressor After Treatment equipment operators covering key topics such as the fundamentals of

thermal systems. These training sessions have significantly enhanced

our employees' awareness of energy conservation and their ability to

The original compressed heat dryer in the power system consumed 3%-5% of compressed air during the cold blow phase which was then implement energy-saving measures laying a strong talent foundation

directly vented leading to energy waste and unstable system pressure. To address the problem Qingdao Plant implemented an innovative for improving energy efficiency.retrofit by modifying the filter regeneration method replacing direct venting with condensation recovery. This upgrade saves about 460000 kWh

of electricity annually equivalent to a reduction of roughly 240 tonnes of CO2 emissions.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 56Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Promoting Clean Technologies and Products * Low-Carbon Products

As one of the core action areas of our Sustainable Development As a pioneer in developing green tire products we have continued to invest in green material adoption eco-friendly process design and comprehensive

Strategy "eco-innovation"19 guides our clean technology development resource utilization to explore technological pathways for reducing energy consumption improving energy efficiency and lowering carbon emissions.and application steering greater resources toward sustainable product Our self-developed EcoPoint3 tires deliver unprecedented green low-carbon and sustainable performance throughout their entire lifecycle covering raw

creation. This strengthens our competitive edge in green low-carbon material selection manufacturing product use and recycling. Notably our EcoPoint3 PCR tires achieved the highest A rating in both rolling resistance

markets. Committed to advancing clean technologies we embrace and wet grip performance under the EU labeling standard while our EcoPoint3 TBR tires are the only product in China to receive the AAA rating under

"Innovation Circularity and Sustainability" — intensifying investments in the China Rubber Industry Association's Tire Grading Standard. This innovation overcomes the industry's long-standing "magic triangle" challenge where

energy-efficient eco-friendly tire R&D. By leveraging sustainable advanced rolling resistance wet grip and wear resistance could not be improved simultaneously significantly enhancing energy efficiency safety eco-friendliness

materials developing low-carbon products and pioneering tire recycling and ride comfort. For more details on our low-carbon product innovations in 2024 see Leading Through Innovation.and reuse we deliver tangible climate solutions. Through these efforts we

aim to lead the industry into a lower-carbon sustainable future.Low-Carbon Certification for EcoPoint3 Tires

EcoPoint3 tires significantly reduce fuel and According to product carbon footprint verification Our EcoPoint3 low-carbon tires excel in

* Sustainable Materials electricity consumption as well as carbon by TüV Rheinland every 1000 kilometers driven multiple aspects: energy-efficient production

We actively pursue research and application of recyclable materials in emissions during vehicle operation. Our PCR with EcoPoint

3 tires results in a 39% reduction equipment eco-friendly packaging strict

tire manufacturing to reduce resource consumption and environmental tires have achieved the highest rating of A in lifecycle carbon emissions for TBR tires and control of harmful substances and heavy

impact at the source. Renewable materials such as natural rubber under the EU tire labeling standard for both a 27% reduction for PCR tires compared to metals in rubber compounds and energy-

and rayon are widely used to ensure raw material sustainability. We rolling resistance and wet grip performance standard tires of the same specifications. In saving low-emission performance. In

have also worked with our suppliers to explore the use of sustainable while our TBR tires are the first in China to be recognition of this exceptional environmental December 2024 these tires received eight

materials across categories such as synthetic rubber fillers additives rated AAA under the Tire Grading Standard performance our EcoPoint

3 tires have been China Green Product certificates issued by

and reinforcement materials. This includes sourcing zinc oxide made from (T/CRIA 11003-2016) issued by the China awarded the (EU) 2017/2400 CO2 emissions and the Shenzhen Institute of Metrology and

recycled zinc steel cords and bead wires made from recycled steel and Rubber Industry Association. Additionally fuel consumption certificate by Société Nationale Quality Inspection covering four tread

polyester cords produced from recycled PET continuously increasing our tires have been certified with the TüV de Certification et d'Homologation (SNCH) a patterns and 90 tire specifications.the proportion of sustainable materials in our raw material procurement. Mark and China Mark a testament to renowned certification body in Luxembourg.During the reporting period we reached 31.8% sustainable material their outstanding performance in energy

content in our tires. We optimized sustainable material formulations conservation and emission reduction.to launch two high-sustainability tires: a PCR tire with 75% sustainable

materials and a TBR tire with 80%. With rolling resistance coefficients of

6.0 and 3.8 respectively both products achieved the highest rating of A

under the EU tire labeling standard.

19 F or details on the "eco-innovation" initiative and our Sustainable Development

Strategy please refer to the "Sustainable Development Strategy" section of this TüV Mark Certificate China Mark Certificate VECTO Certificate China Green Product Certification

report.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 57Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Driving Cost and Emission Reductions with EcoPoint3 * Circular Economy

Low-Carbon Tires

As the first "China Tire Resource Recycling Demonstration Base" Sailun Group remains committed to innovating recycling technologies improving the

industry's overall capabilities and increasing material recovery rates and tire reuse rates to minimize environmental burden.In 2024 DST Car Rental (Shenzhen) Co. Ltd. purchased over

38000 EcoPoint3 low-carbon tires. Based on an average monthly During the reporting period our significant breakthroughs in tire recycling technology enabled us to supply batches of retreaded tires to customers

mileage of 1800 kilometers per vehicle and a reduction of 3.17 including Beijing Public Transport. Our proprietary technology has substantially extended tire lifespan and mileage effectively reducing resource

kg CO per 1000 kilometers per tire our tires helped the Group waste and environmental impact. Additionally we have integrated circular economy principles into our industrial practices by leveraging technological 2

reduce carbon emissions by more than 2600 tonnes save 2.85 innovation and establishing relevant standards. To advance waste tires recycling we led the revision of the national standard GB/T 26731-2024

million kWh of electricity and cut costs by over RMB 5 million. Treatment and Processing of End-of-life Tires which outlines treatment methods processing techniques and environmental requirements contributing

Our EcoPoint3 low-carbon tires have received positive feedback to a fundamental shift in how the industry treats waste tires.from both customers and drivers for effectively reducing energy

consumption per unit load (EKG) improving transportation

efficiency and significantly lowering operating costs. Risk and Opportunity Management

Sailun Group has established a preliminary process for managing climate-related risks and opportunities aiming to identify potential impacts more

accurately and continuously enhance climate resilience. We are steadily integrating climate risk considerations into our overall risk management system

Promoting Green Product Certification to Enhance to ensure stable operations amid an increasingly complex environment.Brand Influence

Risk Identification Risk Assessment Risk Response Monitoring and Improvement

As part of our commitment to green and low-carbon development

we featured our China Green Product label in Shenzhen's public C onduct preliminary identification C onduct qualitative assessments Formulate and implement climate risk Regularly review the implementation

transit advertisements to enhance brand visibility and promote of climate-related risks based of the potential impacts of climate response strategies and emergency of climate risk response measures and

on the geographic distribution change to gain a comprehensive response plans to address extreme continuously optimize areas that need

public awareness and adoption of green products. of our operations the nature of understanding of the risks we weather events and other climate-related improvement

our business and considerations may face risks ensuring business continuity Refine risk management processes

of external environments and P rioritize the identified risks I ntegrate climate risk considerations based on monitoring results and external

climate-related policies based on assessment results into our long-term strategic planning to environment changes to strengthen

C losely monitor climate change and determine their overall support business sustainability climate risk response capabilities

trends and policy updates to impact on our business A ctively invest in low-carbon technologies Provide regular training for employees

ensure t imely responses to and product R&D to improve energy on climate change and environmental

external changes efficiency and reduce carbon emissions protec t ion to improve employee

awareness and preparedness

Climate Risk Identification Process

Looking ahead we will further enhance our risk management process by building a closed-loop climate governance mechanism with regular board

engagement. The board will oversee and review the identification and management of climate-related strategies risks and opportunities on an ongoing

basis. Additionally we will introduce climate-related incentive mechanisms by linking management compensation to climate performance targets

ensuring the effective implementation of climate risk management.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 58Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Metrics and Targets Category Targets Progress in 2024

Th e sustainable material content in tires reached 31.8%

Sailun Group has set clear sustainability targets covering areas such as Sustainable Material Increase the sustainable material content in tires to 40%

Content by 2030 and 100% by 2050 Developed the technology to incorporate over 75% sustainable materials in PCR tiressustainable material content energy consumption and carbon emissions. Developed the technology to incorporate over 80% sustainable materials in TBR tires

We will continue to increase investment in the R&D and application of

clean technologies drive innovation and upgrades in green manufacturing

processes and focus on improving energy efficiency and reducing carbon PCR tires: down 11.5% from 2022 Energy Reduce energy consumption per unit of tire product by

emissions to strengthen our ability to address climate risks. Consumption 30% from 2022 levels by 2030 TBR tires: down 14.0% from 2022 OTR tires: down 23.7% from 2022

PCR tires: down 19.3% from 2022

Carbon Emissions Reduce carbon emissions per unit of tire product by 30% from 2022 levels by 203020 TBR tires: down 19.7% from 2022 OTR tires: down 29.9% from 2022

Our greenhouse gas emissions during the reporting period are presented in the table below21:

Indicator Unit 2022 202322 2024

Scope 1 GHG emissions23 thousand tonnes CO2 equivalent 260.24 420.17 622.58

Scope 2 GHG emissions24 thousand tonnes CO2 equivalent 715.29 786.29 825.30

Total GHG emissions (Scope 1 + Scope 2) thousand tonnes CO2 equivalent 975.52 1206.46 1447.88

GHG emission intensity thousand tonnes CO2 equivalent / RMB million 0.045 0.046 0.046

20 Our carbon emission target is based on the year 2022 and each product line is required to achieve a 30% reduction target.

21 Sailun Group conducted an independent third-party verification of its GHG emissions in accordance with ISO 14064 Specification with Guidance at the Organization Level for

Quantification and Reporting of Greenhouse Gas Emissions and Removals. Emissions were consolidated using the operational control approach covering seven operational

factories the Group headquarters and the R&D center. There were no changes to the verification standards methodologies or boundaries between 2023 and 2024. Due to

increased production capacity total GHG emissions in 2024 rose compared to 2023.

22 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.

23 Scope 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.

24 Scope 2 greenhouse gas emissions mainly come from purchased electricity and steam with the electricity emission factor referenced from the national average CO2

emission factor for electric power in the 2022 Announcement on Issuing Carbon Dioxide Emission Factors for Electricity and the steam emission factor referenced from the

Greenhouse Gas Accounting and Reporting Guidelines for Chemical Production Enterprises.ECO-HARMONY:

Fostering a Culture of

Diversity and Inclusion

Sailun Group firmly believes that human capital is a key strategic

resource for the sustainable development of any enterprise. Through

a fair recruitment system competitive compensation and incentive

mechanisms a comprehensive training and development framework

and a healthy and supportive work environment we fully safeguard

employees' rights and interests while fostering team cohesion.Additionally we actively engage in industry dialogue contribute to

philanthropic endeavors fulfill our social responsibilities and work

towards building a harmonious society.Responding to the following indicators and targets

SSE Guidelines:

Rural revitalization Social contributions Employees 04

UN SDGs:

Inclusive Workplace

Talent Development

Employee Care

Occupational Health and Safety

Harmonious CoexistenceAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 60Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Inclusive Workplace To meet the specific needs of different employee groups we have implemented

a series of initiatives to offer diversified care. For example we provide customized

induction packages in English for our overseas employees to help them integrate

Sailun Group adheres to the principles of compliant employment into our corporate culture. When organizing employee health checkups we pay

actively fostering a diverse and inclusive workplace environment and particular attention to the health needs of female employees and offer specialized health checkup sessions for them. Furthermore Sailun Group's headquarters and

prioritizing the protection of labor rights. We attract talent through each of its factories have established "Mother's Huts" managed by the local factory

a transparent and fair recruitment process create a harmonious unions. These facilities provide essential support and convenience for female

workplace based on a culture of respect and inclusion and provide employees in need demonstrating our respect and care for them. By the end of

the reporting period all seven of Sailun Group's operational factories had passed

robust safeguards for employee well-being through a comprehensive SA 8000 certification highlighting the Group's unwavering efforts and significant

rights protection system. achievements in protecting employee rights and improving working conditions.Labor Rights As of the end of the reporting period

Sailun Group strictly complies with the Labor Law of the People' s Republic

of China the Labor Contract Law of the People' s Republic of China the 100%

Labor Law of the Kingdom of Cambodia the Labor Law of Vietnam and

other relevant laws and regulations applicable in the regions where we of operational factories obtained SA8000 certification

operate. We have established and continuously improve internal systems

for managing employment contracts and other labor-related matters. International Women's Day Activities to Convey the Care of

We also implement a Child and Illegal Labor Policy which aligns with key Female Employees

international conventions 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. We adamantly oppose child labor and On March 8 2024 to express our deep care for female employees Sailun

forced labor. For all categories of employees—regular staff interns labor Group's headquarters and the trade unions at each of our factories

dispatch workers and outsourced personnel—we have clear transparent organized a series of women-focused activities including fun sports games

recruitment processes and compensation standards. Additionally we and the distribution of holiday gift packs. These initiatives aimed to enhance

maintain a strict management system that covers identity verification the happiness and sense of belonging among female employees and

background checks a reporting mechanism and the handling of issues to reflected our continued recognition and support for their contributions.ensure the legality and compliance of our recruitment procedures.Diversified Guarantee

In our Employee Handbook we explicitly integrate the principles of

diversity equality and inclusion into the recruitment and employment

processes ensuring that no discrimination occurs based on race gender

region or religion. On this foundation we maintain an equal employment

policy and have established a fair transparent and open selection

process to ensure that employees receive equal treatment in recruitment

compensation training promotion and other aspects.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 61Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Attracting Top Talent Gathering New Forces

Sailun Group adheres to a diversified recruitment strategy continually attracting high-quality talent to ensure a solid foundation for the Group's Sailun Group continues to deepen its school-enterprise cooperation

sustainable development. We have strengthened talent assessments and school-enterprise partnerships utilizing a wide range of recruitment channels and promotes cross-border partnerships with educational institutions.and precise talent management strategies to optimize our human resource structure and enhance the Group's overall competitiveness. We are committed to creating a high-level talent development base

that provides strong support and innovation momentum for our global

strategy.Unblocking Recruitment Channels

Campus Recruitment Initiatives: Bringing Talent

To meet the global strategic needs of Sailun Group we continue to implement both campus and social recruitment strategies attracting high-quality Together to Build Our Dreams

talent through diverse channels to provide strong human resources support for the sustainable development of the business. For campus recruitment

we focus on selecting graduates with exceptional abilities and a global outlook following standardized processes. For social recruitment we target

experts in functional roles and leading talent in production and R&D to strengthen the competitiveness of our international operations.In 2024 Sailun Group held a series of campus recruitment events

at multiple universities featuring job fairs interactive company

open day corporate presentations alumni exchanges and on-

Strengthening Talent Inventory site interviews attracting more than 1200 students. This event not only provided a platform for students to gain an in-depth

understanding of the Group and plan their careers but also

In 2024 Sailun Group launched a special initiative for organizational capacity building. Using the "Eight-Step Department Profiling" method we marked the deepening of cooperation between the university

comprehensively analyzed responsibilities positions and talent profiles across various business units from the strategic level to the operational level. We and the Group building a solid bridge for talent development

conducted a talent inventory and developed a detailed talent matrix. and exchange.Enhancing Capability

Assessment Defining Key Positions

Conducting Comprehensive Developing

Talent Assessment Management Talent

Organizing teams within each Identifying key positions based Conducting talent assessments Identifying management talent

business department to conduct on business development needs within each business department through role profiles and assessing

a comprehensive capability and talent development pathways from basic job qualifications to their capabilities through

assessment and evaluation professional capabilities leadership model evaluations

using a capability matrix

Outputting core talent for Focusing on addressing skill gaps

Outputting capability matrix Defining position profiles to clarify each specialized field and and developing and nurturing

diagrams for each business the characteristics and requirements key positions completing talent through task assignments

department and developing of the talent needed for each role the talent pipeline mentorship and empowerment

short-term and long-term

improvement measures

Talent InventoryAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 62Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Carrying Out Cross-Border School-Enterprise Cooperation to Build Industry-Academia-Research Training Bases

In alignment with the national Belt and Road Initiative international

education efforts and Sailun Group's global expansion strategy we

have partnered with SMK in Indonesia Qingdao Technical College

and other institutions to implement cross-border school-enterprise

cooperation. In 2024 we signed a contract with Qingdao Technical

College to establish an overseas college and design "Chinese +

Vocational Skills" training courses jointly creating a high-level industry-

university-research training base.Sailun Group has earned widespread recognition for its exceptional performance in talent recruitment and development. During the reporting period we

received several prestigious employer brand awards.China's Best Employer China's New-Generation 2025 Distinguished

of the Year – 2024 Most Employer – 2024 Urban Employer

Promising Employer Influence Employer

Zhaopin 58.com 51job

2024 Shandong's Annual

Most Influential Employer Extraordinary Employer 2024 Best Employer in Qingdao

Liexing & Haitou Liepin Qingdao Human Resources

商 Management AssociationAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 63Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Talent Development New Employee Training: Empowering New Forces

Sailun Group thinks highly of employee growth unlocking their

New Social Recruitment Employees Training

potential through systematic training fair promotion scientific

assessment and diversified incentives. We strive to help each We have designed tailored training programs in functional areas and

employee progress in their career path achieving a win-win situation sales for new employees hired through social recruitment. These

for both individuals and the Group. programs combine centralized classroom instruction with factory

visits allowing employees to gain a deep understanding of our

corporate culture. For sales training we have incorporated practical

operational elements ensuring that employees receive hands-on

Employee Training experience alongside theoretical learning thus cultivating qualified

sales personnel.To establish a robust training system and ensure the successful implementation

of training programs Sailun Group has formulated the Training Management

Regulations Internal Trainer Management Regulations and Training Resource

Management Regulations. These regulations define training responsibilities at Campus Recruitment Employee Training and Development Program

all levels standardize the selection development and incentive mechanisms

for internal trainers and optimize the allocation of training resources. We have developed a 2.5-year training plan for graduates recruited through campus recruitment designed to guide their growth through three

stages: "Fellow Colleagues–Role Competent Employees–Individual Contributors." This program combines various training methods including

We have developed a training management system based on ISO 10015: 2019 centralized training workshop internships online learning and mentorship to comprehensively enhance the professional skills and overall

Quality Management—Training Guidelines covering training needs analysis capabilities of new employees. The goal is to help these new colleagues quickly integrate into the Group facilitating their transformation from

training plan formulation and implementation training effectiveness evaluation newcomers to core contributors thereby injecting fresh energy into the Group's long-term sustainable development.and other areas. We also evaluate and manage internal and external training

resources to ensure effective training development.We encourage all employees to participate in various continuing education

programs such as acquiring qualification certificates. For training related to

specialized operations key business functions and obtaining professional

certificates we offer reimbursement subsidies and allow employees to attend

training sessions with pay.Sailun Group has established three primary training systems—new employee

training professional line training and management training—to provide both

general and specialized training programs tailored to employees in various

positions and career paths. These programs holistically develop employees'

professional competencies including job-specific skills cross-functional

knowledge and leadership capabilities.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 64Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Professional Line Training: Enhancing Employees' Professional Skills Management Line Training: Cultivating Management Talent

Project Manager Qualification Program "Building an Excellent Team Leader" Training Program

For key employees and project managers within the R&D system we focus on

project management as the core content enhancing general abilities through For team leaders we provide offline centralized training in short

centralized training. This program aims to strengthen employees' project frequent sessions over an extended period. This program focuses

management skills and improve their overall effectiveness in managing projects. on team management communication skills and problem-solving

empowering team leaders to improve their ability to manage teams

"Six Sigma" Training Program and solve challenges effectively.For key employees in production we offer "Six Sigma" training that combines

centralized sessions with practical project work. This program is designed to

enhance their expertise in lean production techniques."Refining Camp for New Management Personnel" Training Program

For newly appointed management personnel we offer comprehensive

training through online learning group discussions and project

practice. The program focuses on developing strong management

awareness refining skills and learning management methodologies

equipping new leaders with the tools they need to enhance their overall

management capabilities.Internal Trainer Development Program

To strengthen our internal training capabilities we provide comprehensive

development for internal trainers. Through curriculum design material optimization

centralized training and trial lectures we enhance their teaching skills and instructional

effectiveness. This initiative helps cultivate a robust internal trainer team while also

preserving organizational knowledge and experience. "First Lesson for Management Personnel" Training Program

For all management personnel we offer centralized training

centered around strategic planning. This program aims to deepen

their understanding of key business areas and strengthen their

comprehension of strategy mission corporate culture and

responsibilities. Our goal is to enhance managers' awareness of

strategic goals and align them with the Group's vision.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 65Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sailun Group continues to advance talent development in its overseas factories offering customized training programs for various overseas employees. Employee Promotion

For fresh graduates we introduced the "Production Star" program to develop a shift supervisor team with high educational standards and strong

competencies. For newly appointed team leaders we implemented the "Eagle Plan" aimed at enhancing their first-line management skills. For key

business personnel we offer opportunities to study in China and provide mentorship with Chinese instructors enabling them to absorb advanced We follow a dual development pathway focusing on both management

management and technical knowledge. Through these multi-level talent development programs we continue to strengthen the talent pipeline in and specialization and continuously work to internationalize our ranking

overseas factories promoting cultural exchange and integration across our Southeast Asian facilities. system while optimizing promotion channels. We have established one

management track and three professional tracks—technical functional

In addition to enhance the language proficiency of our overseas employees we provide free Chinese language courses and exam rewards along with and operational. Each track has clearly defined job levels ensuring

English language learning allowances. Outstanding employees are given the opportunity to study at Sailun Group's global factories broadening their sufficient development space for employees and supporting diversified

international perspectives and some employees are also offered free study opportunities at partner universities providing essential support for their career growth within the Group.personal and professional growth.Sailun Group embraces a mentor culture rooted in "Passing on Knowledge

for Long-Term Talent Development" by implementing a full-staff mentorship

system to meet talent development needs and business echelon building.Guided by mentor qualifications and team-building objectives we design

empowering training programs targeting key groups enhance mentor

skills through hands-on coaching track and evaluate progress and

consolidate best practices to create a systematic mentor management

mechanism. In 2024 we appointed 480 mentors to the talent development

program selected 56 outstanding mentors and provided training across

862 individual sessions with an average satisfaction score of 4.83 out of 5

significantly improving retention and success rates.Attending to

employees'

Proactively thoughts and

fostering culture concerns

Positively Providing moral

Monthly fresh graduate training "Eagle Plan" training Key business personnel went to China for field interpreting and encouragement

study communicating and support

Fostering Cultural Enhancing team

openness and Employee CareLeadership cohesion and

sharing Sailun sense of belongingBuilding a Global Talent Pipeline Through Overseas Talent Development Programs Mentorship

System

In 2024 Sailun Group's Cambodia Factory continued to advance its talent pipeline and contribute to the execution of the Group's globalization Development

strategy through diverse talent development initiatives and cultural integration measures. The Cambodia Factory organized centralized training and Training

for the 2023 cohort of fresh graduates which included both Chinese and Cambodian employees. The training was delivered in bilingual formats

using both Chinese and Cambodian for instruction and English-language textbooks to strengthen employees' professional knowledge and

cross-cultural understanding. Additionally the Cambodia Factory hosted a bilingual speech competition in both Chinese and English providing

a platform to highlight the employees' comprehensive skills and language proficiency. At the Vietnam Factory the "Eagle Plan" for cultivating Actively sharing knowledge and providing guidanceOffering timely feedback and coaching

frontline management talent continued to be implemented. In 2024 five training sessions were held with approximately 180 participants Planning for career development

completing the program significantly improving management capabilities at the operational level.Mentorship System Operation ModeAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 66Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Compensation and Performance Performance Management Mechanism

By establishing a standardized compensation management and Assessment Dimensions

performance evaluation system Sailun Group has created a comprehensive

compensation incentive system that effectively boosts employee motivation Group level: Financial dimension customer dimension

and creativity while ensuring the attraction and retention of key talent. internal processes dimension learning and growth dimension

Employee level: Performance plans for management include both

Compensation Incentives business and management indicators while non-management

employees are primarily assessed on business indicators

To standardize compensation management Sailun Group has formulated

the Regulations on Compensation Management and the Regulations on Evaluation Frequency

Compensation and Welfare Management for International Dispatched

Personnel which clearly define key processes such as compensation

and welfare categories structures standards and adjustments. We Setting differentiated evaluation frequencies based on employee

have implemented a globally unified compensation and rewards system characteristics and business models

offering both fixed and variable compensation to all employees with

floating incentives based on individual performance. Additionally we Performance Improvement

have established a medium- and long-term equity incentive plan for

employees in key roles to foster greater enthusiasm and initiative Supervisors regularly meet with employees to review their

helping retain core talent. performance assist in creating improvement plans and help

them achieve their performance targets

Performance Assessment When performance indicators are not met the system automatically

triggers a performance improvement process

We have developed and implemented the Performance Management

Control Procedure the Performance Bonus Assessment Management The supervisor analyzes the reasons for not meeting targets and

Regulations and the Performance Plan Management Regulations to develops improvement measures to ensure the achievement of

standardize the management rules and standards for performance- performance goals in the next cycle

based compensation.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 67Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Employee Care

Through a diverse array of employee welfare programs and democratic communication mechanisms Sailun Group has established a bridge of trust

between the Group and its employees enabling each employee to grow under the Group's care achieve mutual success through open communication

pool collective strength and work together to build a brighter future.Employee Benefits

To standardize employee benefits management Sailun Group has developed the Regulations on Employee Benefits Management which define benefit

standards and implementation guidelines to ensure that employees' rights and interests are fully protected. We continuously expand our employee

benefits initiatives offering basic benefits such as pension insurance (including post-retirement pensions) holiday benefits and office campus facilities

that comply with local legal requirements. Additionally we offer all employees enhanced benefits that exceed statutory mandates including additional

full-pay vacation flexible attendance policies and comprehensive health benefits. In 2024 as part of the broader employee care program Sailun Group

created an employee care map and launched the "Sailun Care" employee engagement column on the WeChat platform to effectively enhance employees'

sense of belonging and well-being through targeted personalized care initiatives. Employee Care Map

Holiday care: During the reporting period we established a dedicated task force for dormitory upgrades investing more than RMB 30 million

We provide additional leave beyond statutory holidays including exam leave Lantern to comprehensively enhance the staff dormitory facilities improve the living environment and increase the overall quality of life

Festival leave parental leave and caregiver leave. for employees.S upporting facilities:

W e have enhanced the facilities at the Group's headquarters staff dormitories Upgrading and Renovating Staff Dormitories to

including guesthouses outdoor recreational areas parking lots and relaxation rooms. Build a Happy Enterprise with Humanistic Care

Work-Life The R&D center is equipped with reading areas coffee bars lounges and a gym.Balance

F lexible work hours:

We provide flexible work arrangements for staff in functional departments R&D sales In 2024 Sailun Group launched a global staff dormitory upgrade and renovation

and breastfeeding employees. project. The project adopts a modular design featuring "bed on top desk below

F estival care: + independent storage" equipping staff dormitories with modern facilities such

as smart locks air conditioners and water heaters. The renovation also optimizes

W e organize activities such as Parent-Child Day Open House holiday visits and

Family Visit Days. dry-wet separation design for bathrooms and balconies and provides functional

spaces such as public laundry rooms and relaxation areas. This renovation added 46

dormitories for new employees providing a total of 138 beds and fully maintained

Diverse and specialized health plans 255 beds with a 100% maintenance rate significantly improving the convenience and

W e offer programs such as health checkups for employees' parents and psychological comfort of employees' living conditions.care services.Health Additionally we have ensured transparency in the dormitory renovation process

Benefits E mployee health management:

through the WeChat platform and organized employee representatives to participate

We have shifted from basic health checkups to a comprehensive employee health

management system optimizing policies and processes to better manage health in decisions such as furniture selection and layout design. Over 200 suggestions were

checkups. collected and implemented demonstrating the Group's leadership in humanistic care.Employee Benefits SystemAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 68Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Holding Parent-Child Day Activities to Deepen the

We design and distribute induction gift packages for new employees offering practical and thoughtful items that meet the needs of staff to enhance Care of Employees' Families

their onboarding experience. During the reporting period we actively organized various cultural activities to enrich employees' lives foster team

unity and create a positive and uplifting corporate culture atmosphere.During the reporting period the Group headquarters held the

annual "Parent-Child Day" activity attracting 40 employees’

Cultural Ceremonial Activities Sports and Cultural Activities Intellectual Exchange Activities families. At the event employees and their children visited the

Group's working environment learned about tire knowledge and

Including anniversary celebrations Including sporting events team- I ncluding seminars book clubs co- participated in fun interactive games like "Table Tennis Challenge"

award ceremonies cultural speeches building activities recreational games creation meetings and discussion and "Happy Basketball." These activities allow children to enjoy

and Cultural Month and cultural performances forums physical and mental exercises in a joyful environment. The event

not only strengthened parent-child bonds but also showcased the

Group's care and attention to employees' families.Main Cultural ActivitiesAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 69Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Democratic Communication Building Regular Communication and Feedback To further understand employees' voices we conduct annual employee

Channels for Employees to Improve Their Sense of satisfaction surveys for all employees at every operational site. Using

Satisfaction Through Closed-loop Management scientific methods to evaluate employee opinions across various

We have established a comprehensive employee complaint channel and dimensions we identify organizational development shortcomings

developed a standardized mechanism to ensure that employee concerns and create targeted improvement plans to foster the coordinated

are handled in a timely and fair manner. We have signed a collective We regularly hold employee communication and exchange

agreement with our employees covering key areas such as employment development of employees and the Group.activities such as congresses symposiums and tea parties across

management freedom of association working hours vacations salary

and benefits labor safety and health insurance and welfare special the Group's headquarters and all subordinate operational factories. Carrying Out Employee Satisfaction Surveys to

protections for female employees and vocational training. This ensures These activities focus on topics of concern to employees including Optimize Work Experience

the protection of employees' rights and promotes harmonious and administrative services dormitories property management

stable labor relations. and security. For example the Group headquarters has held five

tea parties with over 300 participants collecting more than 70 During the reporting period we launched the "Employee Experience

Sailun Group values cultural development and cultivation and deepens employee suggestions. In 2024 based on employee feedback and Organizational Health" survey project for 2024. This comprehensive

the connotation of corporate culture through methods such as promoting we conducted a closed-loop self-inspection of the modes and survey assesses employee satisfaction and organizational health across

cultural concepts organizing cultural experience activities conducting processes for administrative services and the employee care system six core dimensions: strategy and business objectives organizational

consensus discussions and promoting cultural business initiatives. During formulated corrective actions for the issues identified further management process mechanisms resource support talent incentives

the reporting period we launched the employee anniversary badge improved business standardization and norms and continuously and corporate culture. The survey is conducted using anonymous

design project and completed its preliminary release to further enhance

enhanced the satisfaction of employees. electronic questionnaires available in multiple languages with oversight employees' sense of belonging and pride. by the labor union and audit department to ensure data authenticity

and protect employee privacy. The survey covered all employees both

Communication domestically and internationally achieving a participation rate of 92.5%

and Appeal E-mail: jubaotousu@sailuntire.com； and a satisfaction score of 93.7.Channels for

Employees Tel.: 17568911565(also the WeChat account) We emphasize analyzing the survey

results continuously optimizing the

work environment and incentive

Cultural Promotion Cultural Experience mechanisms to enhance employees'

happiness and organizational

P arty lectures E xperiential activities

effectiveness. This helps create a

H istorical and cultural exploration Management interpretation

work ecosystem that offers greater

Cultural training for new Case analysis

employees sense of belonging and growth

Cross-cultural communication opportunities. At the same time we

regularly share the survey results

along with updates on improvement

Cultural Consensus Cultural Business actions with employees and allow

employees to monitor and participate

C onsensus discussions with Writing

management in the Group's progress. Photography and videography

S ales system consensus Interviews and communication

discussions

Video production

Production system consensus

discussions

Cultural Cultivation and Construction MeasuresAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 70Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Occupational Health and Safety

Sailun Group has always taken the occupational health and safety of employees as its core priority and comprehensively safeguarded the health

and safety of employees with perfect safety management systems and measures to lay a solid foundation for the Group's steady progress.Work Safety

We strictly adhere to the Work Safety Law of the People's Republic of Based on the risk classification control list we regularly conduct hazard

China the Law of the People's Republic of China on Prevention and inspections across various aspects including platform-based inspections

Control of Occupational Diseases the Law on Occupational Safety process inspections special inspections safety activities and safety

and Hygiene of Vietnam the Labor Law of the Kingdom of Cambodia tools. We track and implement rectifications for any identified hazards. In

and other relevant laws and regulations. We have developed safety addition we comprehensively assess static dynamic and management

management rules and systems such as the Environmental Occupational risks in our operations and regularly conduct occupational safety risk

Health and Safety Management Manual and the Regulations on Safety assessments. Through hazard identification accident risk analysis and

Production Rewards and Punishments which provide clear guidance on evaluation we develop a risk management and control list improve

operating procedures and emergency plans. At the same time we have employee safety procedures and create emergency plans. These plans

established a comprehensive safety responsibility system covering all are regularly tested through emergency drills to ensure preparedness and

employees guided by the Safety Production Responsibility Assessment effective response to any incidents.Regulations. We have set clear safety objectives and implemented a

three-tier evaluation system—annual monthly and daily—to assess the

performance of safety personnel at all levels.Radiation Vehicle injury

Sailun Group's factories adhere to the principle of "safety first with a focus accidents accidents

on prevention" equipping operational sites with safety photoelectric

sensors safety light curtains and safety scanners to prevent injury from

human error or equipment malfunction. We are continuously improving Heatstroke Electric

shock

our occupational health and safety management system by clearly accidents Emergency accidents

defining the responsibilities of the general manager management Drills

representatives employee representatives and all functional

departments. Key measures include hazard identification hazardous

chemicals management special equipment supervision and process-level Burn Lifting injury

accidents accidents

risk controls. Through internal audits management reviews performance

monitoring and daily supervision and inspections we ensure the safety Confined

and effectiveness of our operations continually enhancing the overall space

accidents

efficiency of our occupational health and safety management.Types of Emergency Drill AccidentsAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 71Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

We regularly conduct work safety and occupational health training for all

employees to continuously raise safety awareness and ensure that they Conducting Fire Emergency Drills to Enhance the Ability of Emergency Response

understand occupational hazards risks associated with their positions

corresponding prevention measures and the proper use of personal

protective equipment (PPE). In addition we promote safety knowledge During the reporting period Sailun Group's ACTR Factory cooperated with the Xining Fire Department in Vietnam to conduct fire training and

and risk awareness by setting up bulletin boards information displays emergency drills aimed at enhancing the professional capabilities of the Group's front-line fire teams. A total of 50 firefighters participated in the

and job-specific risk notification cards to communicate potential safety drills effectively improving employees' fire safety awareness and firefighting skills.hazards occupational disease risks and related control measures.Safety Education and Training for Returning to

Work After the Holiday to Strengthen Employees'

Safety Awareness

During the reporting period the General Manager of Qingdao

Factory personally organized and conducted safety education

and training for team leaders and above management staff after

the holiday. The training covered topics such as enhancing safety

awareness controlling key points learning safety knowledge

and discussing the safety production situation. The goal was

to reinforce the safety defense line from multiple dimensions—

policies ideas warnings and deployments—ultimately improving On-site Safety Device Awareness Training to Prevent Safety Accidents

employees' safety awareness and their ability to prevent

accidents.During the reporting period Sailun Group's Cambodia Factory organized on-site safety device awareness training for employees in the PCR

vulcanization workshop focusing on explaining the proper usage and importance of safety devices. The training aimed to prevent employees from

bypassing or damaging safety equipment thereby enhancing the safety awareness and accident prevention abilities of production personnel.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 72Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Occupational Health

New Employee Personnel

Pre-Job Three- switching job

Sailun Group upholds the people-oriented philosophy that "our employees are our most valuable asset." Each year we engage third-party organizations to Level Safety positions

monitor occupational hazard factors at worksites and every three years we conduct assessments of the current status of occupational disease risks. These Education

evaluations help us accurately identify occupational health management risks and implement timely corrective measures. To address potential health hazards

such as occupational diseases we have developed emergency response plans and equipped work areas with eyewash stations alarms emergency protective Personnel Special

equipment and first-aid supplies. Regular emergency drills are conducted to continuously enhance employees' emergency response and first-aid capabilities. working in

confined Occupational

(equipment)

operation

spaces Health personnel

In terms of personal protective equipment each factory provides employees with labor protection items such as anti-cutting sleeves gloves anti-smash shoes and Safety

and anti-static clothing as well as occupational disease prevention gear including earplugs dust masks and gas masks. We organize annual training on the Training

correct use of personal protective equipment to ensure proper usage. In addition we organize regular occupational health checkups for all employees in positions Main

with occupational disease risks to ensure their long-term health and workplace safety. Emergency responsible

response persons

Each of Sailun Group's factories organizes annual occupational health training on occupational health and safety management for key personnel and personnel New and safety pre-job

occupational health managers. The training covers occupational health and safety laws and regulations national occupational health standards basic knowledge management training processes personnel

of occupational disease prevention and control and emergency response procedures for occupational disease incidents. These efforts aim to continuously technology

equipment

strengthen each factory's capability in managing occupational health risks. and materials

personnel

Positions Covered by Occupational Health and Safety Training

By the end of the reporting period all seven factories in operation under Sailun Group had obtained ISO 45001 Occupational Health and Safety Management

System certification.Qingdao Factory Dongying Factory Shenyang Factory Weifang Factory Vietnam Factory ACTR Factory Cambodia FactoryAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 73Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Harmonious Coexistence

As a proponent of sustainable development in the global rubber

industry Sailun Group adheres to the concept of "Harmonious

Coexistence" and takes the responsibility of building a shared future

for the industry. Through initiatives such as deepening collaborative

innovation across the industrial chain and establishing technology-

sharing platforms we aim to drive the co-creation of value within the

rubber industry ecosystem. In fulfilling our social responsibilities we

continuously engage in public welfare activities integrate our corporate Sailun Group × XCMG Sailun Group × COSCO Shipping The Tire Cologne Germany

development into community governance networks and actively give

back to society. We firmly believe that only by fostering cross-industry

cooperation with an open and inclusive approach and embracing public

welfare and charity through a mindset of symbiosis and mutual benefit

can we truly elevate the value of "business for good".Win-Win Cooperation

With our leading position in the industry and strong research capabilities

we actively participate in industry cooperation and exchanges. We are

committed to integrating resources and strengths from various parties to

achieve mutual benefits through deep collaboration thus promoting the Mining Indonesia The 14th China (Guangrao) International Rubber MINExpo

thriving development of the tire industry. We actively expand our presence Tire & Auto Accessory Exhibition

in international events through title sponsorships partnerships and supply

collaborations thereby enhancing our influence in the racing sector. In

2024 Sailun Group became the sole Chinese tire manufacturer certified as

an official supplier for professional motorsport competitions.We focus on industry exchanges and enhancing brand influence. We

actively participate in major industry exhibitions such as the Mining

Indonesia Las Vegas MINExpo Shanghai International Bus Exhibition

and The Tire Cologne. Simultaneously we have built close relationships

with leading enterprises across various sectors to provide high-quality

convenient services for our customers. During the reporting period we

entered strategic partnerships with companies such as XCMG LGMG and

COSCO Shipping continuously implementing our strategy of collaborative Bauma China China International Mining Exhibition (CIME)

innovation in the industrial chain and jointly establishing a high-level model The 17th China International Tire &

Wheel (Qingdao) Fair

of cooperation.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 74Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Joining the ESG Alliance of Logistics Industry to Sharing Experience at Industry Quality Exchange Meetings to Lead New Practices in Quality Improvement

Support Sustainable Transformation

In August 2024 at the China Logistics Industry ESG Collaborative In September 2024 Zhang Xiaojun Vice President of Sailun Group was invited

Development Alliance TUC Summit Sailun Group as one of the to attend the opening ceremony of Quality Month hosted by the Qingdao

sponsors joined the China Logistics Industry ESG Collaborative Administration for Market Regulation. He also participated in the exchange and

Development Alliance. We are committed to helping China's logistics observation meeting on quality infrastructure that supports industrial chain

industry explore ESG information disclosure standards and promote and supply chain improvements. During the meeting Sailun Group shared its

the green healthy and sustainable development of the sector. advanced quality management practices. As a result Sailun Group was awarded

the second prize in the 2nd Qingdao Quality Innovation Competition for its

thorough implementation of the city's "strengthening quality support and

building a strong quality nation" spirit and its industry-leading practices.Sailun Group's European Tour: Embarking on a New Journey of Industry Exchange

Strengthening University-Enterprise Cooperation and

Promoting Technological Breakthroughs in Intelligent Tires From May to June 2024 Sailun Group took advantage of The Tire

Cologne in Germany to launch a European self-driving experience

Sailun Group has established long-term partnerships with numerous called "Cologne Road 2024." On the eve of the exhibition the Sailun

prestigious universities and research institutions including Peking race team visited major dealers across several European countries

University Tsinghua University the Chinese Academy of Sciences including Poland Italy France Spain and the United Kingdom.Shandong University Beijing University of Chemical Technology During this journey the team engaged in in-depth discussions with

China University of Petroleum (East China) Qingdao University dealers about the application of EcoPoint3 tires in various electric

of Science and Technology Shandong University of Science and hybrid and popular vehicle models gaining further insights into the

Technology and the China Academy of Industrial Internet. unique characteristics and needs of the European market.Driven by the increasing demand for safety environmental protection

economy and comfort in next-generation intelligent vehicles Sailun

Group has partnered with the Chinese Academy of Sciences and At the Tire Cologne Liu Yanhua Chairwoman of Sailun Group shared the

Shandong University of Science and Technology to jointly advance Group's long-term strategy corporate culture stories of technological

the development of the intelligent tire industry. This collaboration innovation and commitment to sustainable development with global

focuses on the development of new sensors and their associated

production technologies ensuring that these sensors remain media and partners laying a solid foundation for future cooperation.functional in the harsh conditions of tire environments. The project

aims to guarantee the stability of multi-sensor packaging and signal

transmission further meeting the diverse performance requirements

of tires. We anticipate that this effort will significantly drive the

leapfrog development of the intelligent tire industry.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 75Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Sailun Group Supplied Multiple International Events to Help Racing Drivers Set New Records

Thanks to years of foundational research into rubber technology our race tires have reached world-class standards in terms of handling grip and stability. These improvements provide drivers with higher safety and better

driving experiences empowering China's speed in international automotive events. In February 2024 Sailun Group was officially certified by the FIA becoming the only Chinese tire brand to secure access to professional

automobile events. Starting with the 2024 season we will exclusively supply tires for several top international competitions. Additionally we have been long-standing sponsors and title partners for major racing events

continually extending the "Sailun Influence" in the racing industry.In May 2024 the TCR Asia season opener took place at the Litar Antarabangsa In August 2024 the TCR Asia Series made its long-awaited return

Sepang in Malaysia. The event attracted professional drivers from China to Thailand after a hiatus since 2019 with the fifth and sixth rounds

Ireland South Korea Indonesia Malaysia and other countries. As the held at the Chang International Circuit. Sailun's PC01 race tires the

official exclusive tire partner for TCR Asia in the 2024 season Sailun Group official designated tire showcased their exceptional performance

provided the PC01 tires specially developed for TCR tracks offering a solid and quality helping drivers set new records.foundation for drivers' success in the championship.TCR Asia

China

FIA F4 Chinese Touring Car

Championship Championship

CJ Super Lynk & Co

Race Cup

Hyundai N

Cup

Automotive professional events exclusively supplied by Sailun Group

FIA F4 Chinese Championship Tire PartnershipAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 76Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Working Together for the Common Good Sailun Group Visited Longnan to Seek a New Chapter "Tire Lecture Hall" Opened to Help a New Chapter in in East-West Cooperation Science Popularization

While focusing on maintaining steady business operations and

development Sailun Group remains committed to fulfilling its corporate In November 2024 Sailun Group along with the Industry and In 2024 Sailun Group in collaboration with Jing Gang Shan

social responsibilities. We continuously create value for society and Information Technology Bureau of Qingdao West Coast New Road Primary School in the Qingdao West Coast New Area

strive to give back the benefits of our success. Our efforts focus on Area and a delegation of enterprises visited Wudu District launched the "Tire Lecture Hall" series of science popularization

people's livelihoods poverty alleviation public welfare and community in Longnan City Gansu Province for an investigation and classes. The first course "The Wonderful World of Tires"

contributions. We prioritize supporting rural revitalization education exchange. During the visit both sides held in-depth discussions was carefully designed by Sailun Institute of Learning and

earthquake relief and cultural and sports initiatives to help promote the on collaborative development between East and West China the Technology R&D Center under the theme "Exploring the

positive and upward development of society. focusing on cooperation in industries science and technology. Secrets of Tires Creating Infinite Possibilities." Through various

Sailun Group seized this opportunity to provide financial support interactive forms such as pictures videos and tire cross-section

During the reporting period to Wudu District in Longnan City hoping to contribute further models the classes educated all teachers and students about

to the future of East-West cooperation. the history functions classifications and patterns of rubber

4.34 tires stimulating their curiosity and innovative thinking. On RMB million the same day Sailun Group donated electronic screens to the

school to improve students' learning conditions.was contributed to rural revitalization initiatives and

other social donations

Rural Revitalization

Sailun Group has long been committed to rural revitalization and actively

participates in initiatives to help modernize rural communities. We remain

focused on the development needs of impoverished and underserved

areas seeking cooperation opportunities and collaborating with various

stakeholders to jointly plan development pathways. Moving forward Educational Donations to Support the Long-Term

Sailun Group will continue to monitor the progress of rural revitalization Development of Education

fulfill its responsibilities as a corporate citizen through practical actions

and contribute to the creation of beautiful and livable villages.In September 2024 to help improve the

Conducting Agricultural Sales to Help Facilitating Education educational environment for students

Farmers Increase Their Income at Can Tho Viet Hoa International

School in Vietnam Sailun (Vietnam)

Sailun Group has long been dedicated to education and charitable

Sailun Group actively responded to the call to support farmers as a representative Chinese-funded initiatives. It not only provided teaching materials and scholarships to

exploring a new sustainable assistance model transitioning enterprise joined the Consulate General various schools through donations of materials and funds but also actively

from "purchasing instead of donating" to "promoting production of the People's Republic of China in Ho organized educational outreach programs such as the "Tire Lecture Hall."

through purchasing." In 2024 we procured specialty agricultural Chi Minh City and other Chinese business These initiatives aimed to enrich students' scientific knowledge and

products from Longnan City Gansu Province and other regions organizations to make a collective encourage innovative thinking. We are committed to improving educational

to help farmers in underdeveloped areas access new markets and donation. Sailun (Vietnam) contributed conditions and promoting education equity making tangible contributions

increase their income. Through these efforts we have addressed 200 million Vietnamese Dong to the to the creation of a better future for society.the issue of "difficulties in marketing agricultural products from school supporting its development and

mountainous regions" while also establishing a green and high- fostering friendly exchanges between

quality procurement channel for employee welfare. China and Vietnam.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 77Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Assistance to Disaster-Stricken Areas Advancing both Culture and Sports

Sailun Group actively engaged in public welfare efforts to support disaster-stricken areas. In response to natural Sailun Group embraced the concept of advancing both culture and sports. We were deeply involved in cultural

disasters we acted swiftly extending a helping hand by providing urgently needed materials and financial communication and through holding sports events we conveyed our unique urban cultural charm and corporate

support to the affected regions. Our goal was to help communities overcome difficulties and rebuild their homes. spirit to the public. At the same time we supported the development of sports and enhanced the cultural identity

and soft power of our city.Sailun Group Donated to Vietnam Flood Relief Efforts to Help Overcome Tough Times Facilitating the Promotion of Qingdao Festivals and Building a New Cultural Landmark

In October 2024 northern Vietnam experienced devastating floods that severely impacted local Sailun Group actively contributed to the development

residents' lives. In response Sailun Group's Vietnam Factory acted promptly calling on employees to of Qingdao's urban culture. During the Qingdao

make donations. A total of 390 million Vietnamese Dong was raised to support emergency relief efforts International Beer Festival at the West Coast venue

and post-disaster reconstruction in the affected areas. we set up the "Sailun Energy Station" combining

tire culture with Qingdao's beer culture through a

series of engaging game challenges and creative

cultural activities. Additionally the "Sailun Energy

Station" became one of the nine landmark locations

significantly promoting Qingdao's culture and festival

publicity and demonstrating Sailun Group's pivotal

role in supporting local cultural development.Sailun Group Hosted the Table Tennis Feast in Qingdao Promoting the Rise of the

National Sport

In June 2024 Sailun Group hosted the "Sailun EcoPoint3

Sailun Group Rushed to Liaoning to Build a Warm Defense Line Against Disaster Cup" Table Tennis Open in Qingdao. The event followed

a team format and featured three categories: the Open

Group the Chinese Adult Group and the Chinese Youth

In August 2024 Huludao City Liaoning Province was Group attracting nearly 300 table tennis enthusiasts

severely affected by flooding. In response Sailun Group's who formed over 70 teams. The competition saw

Shenyang Factory quickly organized employees to visit the participation from numerous former national players

disaster-affected areas offering relief and assistance. We professional contestants and online influencers with

urgently allocated resources and arranged special vehicles the live streaming drawing significant attention. This

to reach Jianchang County Huludao City Liaoning Province event not only helped spread Sailun Group's brand

delivering necessary living supplies and emergency concept but also promoted the popularization and

materials to the affected residents. Through this disaster development of "National Ball" sports while cheering

relief action we hoped to deliver warmth and care and for Olympic athletes.contribute to the reconstruction and recovery efforts.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 78Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Appendix I Quantitative Performance Table

Governance Data

Indicator Unit 2024 Indicator Unit 2024

Operating income of the Group RMB 100 million 318.02 VOCs Tonne 42.07

Business Ethics Waste

Number of regular employees participating in

Person 21077 General solid waste Tonne 70126.15

training related to business ethics

Percentage of employees trained in business ethics % 100 Hazardous waste Tonne 382.53

26

Number of directors trained in business ethics Person 7 Water Resources Utilization

Percentage of directors trained in business ethics % 100 Total water consumption Tonne 3994254.00

Unfair competition leading to litigation or major

Case 0 Water consumption intensity Tonne/RMB million 125.60

administrative penalties

Direct energy use

Information Security and Privacy Protection

Natural gas m3 16210.40

Number of information security incidents Case 0

Number of customer privacy disclosure events Case 0 Diesel Tonne 1384.93

Number of information security trainings provided Gasoline Tonne 32.61

Session 6

to employees Liquefied petroleum gas Tonne 0.79

Self-generated green electricity Megawatt hour 43483.07

Environmental Data Coal Tonne of standard coal equivalent 208112.55

Biomass Tonne of standard coal equivalent 8606.84

Indicator Unit 2024 Indirect Energy Use

Wastewater25 Purchased electricity Megawatt hour 1039443.27

Chemical oxygen demand (COD) Tonne 98.29

Purchased steam GJ 2003694.26

Ammonia nitrogen Tonne 12.08

Total Energy Consumption

Exhaust gas

Particulate matter Tonne 2.13 Direct energy consumption Tonne of standard coal equivalent 224149.21

Sulphur dioxide Tonne 15.38 Indirect energy consumption Tonne of standard coal equivalent 205657.27

Nitrogen oxides Tonne 48.38 Total energy consumption Tonne of standard coal equivalent 429806.49

25 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.

26 The statistical scope of water resources energy and greenhouse gas-related data covers seven operational factories the Group headquarters and the R&D center.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 79Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Indicator Unit 2024 Indicator Unit 2024

Tonne of standard coal equivalent/

Energy consumption intensity 13.51 Diversified Employees

RMB million

Number of minority employees Person 460

Percentage of renewable energy use % 3.25

Total renewable energy consumption Tonne of standard coal equivalent 13950.91 Number of employees with disabilities Person 7

Non-renewable energy consumption Tonne of standard coal equivalent 415855.58 Number of newly recruited employees Person 5465

Climate Change Tackling Total employee turnover rate % 29.12

Scope 1 GHG emissions tCO2e 622575.62 Employee turnover rate by gender

Scope 2 GHG emissions tCO2e 825303.85 Male employees % 29.77

Total GHG emissions (Scope 1 + Scope 2) tCO2e 1447879.47

GHG Emission Intensity tCO2e/RMB million 45.53

Female employees % 25.96

Employee Training and Development

Social Data Total number of trainees Person 21077

Total training participation Attendance 452655

Indicator Unit 2024

Percentage of employees trained % 100

Employee Hiring

Average training hours per employee Hour/person 42.95

Regular employees Person 21077

Staff training and development expenditures RMB 10000 632.04

Interns Person 260 Number of skills training sessions conducted Session 5732

Number of employees by type of management Occupational Health and Safety

Total number of management staff Person 601 Total hours of employee safety training Hour 282000

Number of ordinary employees Person 20476 Total work-related injury insurance coverage RMB 10000 833.43

Number of employees by gender Coverage rate of work-related injury insurance % 100

Male employees Person 17475 Coverage rate of employee health and safety risk % 100

assessments

Female employees Person 3602

Employee Rights and Benefits

Percentage of female employees % 17.09

Signing rate of labor contracts % 100

Number of employees by age group Social security coverage % 100

<30 years Person 8964 Collective contracts coverage % 100

30-60 years Person 12080 Safety and Quality of Products and Services

>60 years Person 33 Number of product recall batches Time 0About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 80Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Indicator Unit 2024 Indicator Unit 2024

Percentage of product recalls % 0 New authorized utility model patents Number 156

Complaint handling rate % 100 New authorized design patents Number 116

Number of major liability accidents related to

Case 0 New authorized software copyrights Number 3

product safety and quality

Valid trademarks Number 1126

Customer Service

New trademark applications Number 93

Customer satisfaction (overseas) % 97.49

New authorized trademarks Number 116

Customer satisfaction (China) % 98.50

Infringement cases initiated Number 0

R&D Innovation

Infringement cases received Number 0

R&D expenditure RMB 10000 101281.40

Responsible Supply Chain Management

R&D intensity (R&D/revenue) % 3.18

Total suppliers Number 810

Involvement in developing and distributing

RMB 10000 2436.00

advanced materials Domestic suppliers Number 705

Involvement in development and distribution of Overseas suppliers Number 105

RMB 10000 6086.73

reused products or products using recycled waste Percentage of domestic suppliers % 87.04

Certified high-tech enterprises Number 3 Percentage of overseas suppliers % 12.96

National-level innovation platforms Number 4 Percentage of suppliers with signed code of conduct % 68.89

R&D personnel headcount Person 2762

Percentage of suppliers with contracts containing

R&D personnel ratio % 13.10 % 68.89environmental labor and human rights clauses

Total valid patents Number 2008 Percentage of target suppliers that have been

%15.93

Invention patents Number 177 assessed by CSR (e.g. questionnaires)

Utility model patents Number 1086 Procurement of Personnel Training

Design patents Number 745 Percentage of procurement personnel participating % 100

Valid software copyrights Number 116 in sustainable procurement-related training

New patent applications Number 577 Supplier Certification

New invention patent applications Number 99 Percentage of suppliers certified to ISO 9001 % 53.46

New utility model patent applications Number 253 Percentage of suppliers certified to ISO 14001 % 35.68

New design patent applications Number 225 Percentage of suppliers certified to ISO 45001 % 29.88

New software copyright applications Number 3 Percentage of suppliers certified to IATF 16949 % 14.94

New authorized patents Number 315 Rural Revitalization & Social Contribution

New authorized invention patents Number 43 Total investment in rural revitalization and social donations RMB 10000 434.06About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 81Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Appendix II SSE Guidelines Content Index

Dimension 序号 Topic Location Dimension 序号 Topic Location

Governance Inclusive Workplace

Strategy

1 Climate response Talent Development

Risk and Opportunity Management Society 17 Employees

Metrics and Targets Employee Care

Occupational Health and Safety

2 Pollutant discharge Compliant Emissions

Business Ethics

3 Waste disposal Compliant Emissions 18 Due diligence

Environment Sustainable Procurement

4 Ecosystem and biodiversity protection Biodiversity Conservation Sustainability- 19 Stakeholder engagement Stakeholder Communication

5 Environmental compliance management Management System related

governance Anti-commercial bribery and 20 Business Ethics

6 Energy utilization Strategy anti-corruption

7 Water resources utilization Resource Conservation 21 Anti-unfair competition Business Ethics

8 Circular economy Strategy

9 Rural revitalization Working Together for the Common Good

10 Social contributions Working Together for the Common Good

Enhancing R&D Capabilities

11 Innovation Leading Through Innovation

Protecting Intellectual Property

12 Ethics of science and technology Enhancing R&D Capabilities

13 Supply chain security Sustainable Procurement

Society

Equal treatment of small and medium-

14 Sustainable Procurement

sized enterprises

Product Quality and Safety

15 Product and service safety and quality Reliable Customer Service

Enhanced Distributor Management

Data security and customer privacy

16 Information Security

protectionAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 82Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Appendix III Contributing to UN SDGs

UN SDGs Specific contributions Location

Adhering to a people-oriented management approach we have formulated and implemented the Labor Policy Employee Handbook and Welfare Management Inclusive Workplace

Regulations aimed at providing employees with fair employment opportunities competitive salary and welfare benefits to enhance their living standards. We also Talent Development

actively engage in charitable activities such as selling agricultural products and making educational donations which help impoverished areas increase income and Employee Care

improve access to educational resources. During the reporting period we contributed RMB 4.34 million to rural revitalization initiatives and various social donations. Harmonious Coexistence

We offer a wide range of health benefits promote work-life balance and foster the physical and mental well-being of our employees. We have implemented a work safety Employee Care

responsibility system for all employees ensuring that occupational health and safety risks are manageable by regularly monitoring occupational hazards conducting Occupational Health and

assessments of the current state of occupational diseases strengthening major hazard source controls and providing occupational health examinations for all employees. Safety

By building a comprehensive training system and offering diversified career development opportunities we empower employees to grow. In 2024 we provided

training programs for new employees professionals and managers enhancing the mentorship system to develop their skills and management capabilities. This

Talent Development

ensures strong talent support for the enterprise's high-quality development. During the reporting period employees received an average of 42.95 hours of training

with 100% training coverage.We have established systems such as the Employee Handbook to ensure equal treatment of employees in recruitment compensation training and promotion.By the end of the reporting period 100% of the seven operational factories had obtained SA 8000 certification demonstrating our commitment to protecting Inclusive Workplace

employees' rights. In 2024 43% of board members were women.We have formulated a Water Resource Management Policy implemented water resource recycling improved circulating water quality projects and conducted

Green Operations

water conservation training and awareness activities significantly enhancing the efficiency of water usage.In response to China's "dual carbon" policy we have replaced coal-fired energy with biomass energy introduced new photovoltaic power systems and advanced

Climate Response

clean energy applications steadily increasing the proportion of clean energy in our overall energy consumption.In accordance with local regulations market standards and the Group's operational status we have developed the Salary Management Regulations and

Performance Bonus Assessment Management Regulations. These systems provide employees with fixed salaries performance bonuses sales commissions and Talent Development

other variable compensations along with equity incentives for key positions.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 83Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

UN SDGs Specific contributions Location

We continuously enhance innovation and R&D by formulating the Regulations on R&D Quality Management conducting over 20 R&D-related training sessions

and launching a series of high-performance products. We have extensively incorporated renewable materials into our manufacturing processes and reached 31.8% R&D and Innovation

sustainable material content in our tires. Through formula optimization we have mastered the ability to incorporate over 75% sustainable materials in passenger car

tires (PCR) and over 80% sustainable materials in truck and bus tires (TBR). Moreover we have expanded the application of EcoPoint3 materials launching multiple Climate Response

innovative products across our three core segments: passenger car radial (PCR) tires truck and bus radial (TBR) tires and off-the-road (OTR) tires.In the Employee Handbook we integrate the principles of diversity equality and inclusiveness into the recruitment and employment process ensuring no

discrimination based on race gender region religion or other factors. We are also committed to promoting an open and inclusive workplace. We have published Supply Chain Management

the Sustainable Procurement Policy and the Sustainable Natural Rubber Purchasing Policy requiring all natural rubber suppliers to comply with human rights Inclusive Workplace

protection principles ensuring equal opportunities in the supply chain and safeguarding the rights of SME suppliers.Sailun Group actively builds a greener and more resilient supply chain system by developing high-performance and low-carbon tire products applying sustainable R&D and Innovation

materials optimizing supply chain management and promoting the circular economy. These efforts help reduce environmental impact promote sustainable

consumption and contribute to the construction of sustainable cities and communities. Climate Response

We strictly ensure that 100% of wastewater and exhaust gases in the production process meet discharge standards while minimizing hazardous waste generation.At the same time we enhance resource utilization rates by recycling waste tire materials and adopting renewable energy actively reducing both our operational Supply Chain Management

and product carbon footprints. We have issued the Sustainable Natural Rubber Purchasing Policy to regulate responsible sourcing and ensure the sustainable Environmental Management

use of natural resources. Furthermore we implement an ESG management system for the supply chain in accordance with the Sustainable Procurement Policy Climate Response

promoting the construction of a sustainable supply chain.We have established a preliminary process for managing climate risks and opportunities gradually incorporating climate risks into our overall risk management

framework. Simultaneously we have formulated and implemented climate risk response plans and emergency protocols focusing on three areas: operations Climate Response

products and supply chain while continuously improving our resilience to climate change risks.We adhere to ecological protection red lines and implement environmental impact assessments and restoration measures to minimize the project's impact on the

Green Operations

ecological environment. In the future we will develop biodiversity conservation commitments and conduct biodiversity risk assessments.We have established and improved our corporate governance structure and risk control system. We strictly follow business ethics codes strengthen anti-corruption

and anti-unfair competition measures and implement a whistleblower protection mechanism to protect the legitimate rights and interests of employees and Corporate Governance

partners.We maintain open and diversified communication channels engaging in regular and effective communication with suppliers government agencies and other Sustainable Development

relevant parties thereby establishing solid partnerships. Additionally we actively cooperate with industrial partners such as Xiaomi Corporation and XCMG to Governance

promote innovation and progress within the industry. Harmonious CoexistenceAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 84Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Appendix IV GRI Content Index

Sailun Group has reported with reference to the GRI Standards from January 1 2024 GRI Standard Disclosure Location

Statement of Use

to December 31 2024. 2-18 Evaluation of the performance of the highest Sustainable Development

GRI 1 Applied GRl1: Foundation 2021 governance body Governance Structure

2-19 Remuneration policies Sustainable Development Governance Structure

GRI Standard Disclosure Location 2-20 Process to determine remuneration Sustainable Development Governance Structure

2-1 Organizational details About Us

No relevant internal

2-2 Entities included in the organization's sustainability About the Report 2-21 Annual total compensation ratio information is provided for

reporting About Us the time being

2-3 Reporting period frequency and contact point About the Report

GRI 2: General 2-22 Statement on sustainable development strategy

Sustainable Development

2-4 Restatements of information About the Report Strategy

Disclosures 2021

2-5 External assurance Appendix VI Independent

2-23 Policy commitments Business Ethics

Assurance Statement 2-24 Embedding policy commitments Business Ethics

2-6 Activities value chain and other business relationships About Us 2-25 Processes to remediate negative impacts Business Ethics

2-7 Employees Appendix I Quantitative 2-26 Mechanisms for seeking advice and raising concerns Business EthicsPerformance Table

Appendix I Quantitative 2-27 Compliance with laws and regulations

Business Ethics

2-8 Workers who are not employees Management SystemPerformance Table 2-28 Membership associations Win-win Cooperation

GRI 2: General 2-9 Governance structure and composition Board Governance 2-29 Approach to stakeholder engagement Stakeholder Communication

Disclosures 2021 2-10 Nomination and selection of the highest 2-30 Collective bargaining agreements Democratic Communication

governance body Board Governance

3-1 Process to determine material topics Double Materiality Analysis

2-11 Chair of the highest governance body Board Governance

GRI 3: Material 3-2 List of material topics Double Materiality Analysis

2-12 Role of the highest governance body in overseeing Sustainable Development Topics 2021

the management of impacts Governance Structure 3-3 Management of material topics Please refer to the contents in each topic chapter

2-13 Delegation of responsibility for managing impacts Sustainable Development Governance Structure 201-1 Direct economic value generated and Appendix I Quantitative

distributed Performance Table

2-14 Role of the highest governance body in sustainability Sustainable Development

reporting Governance Structure 201-2 Financial implications and other risks and

GRI 201: Economic opportunities due to climate change

Strategy

2-15 Conflicts of interest Business Ethics Performance 2016 201-3 Defined benefit plan obligations and other

2-16 Communication of critical concerns Stakeholder Communication retirement plans Employee Benefits

2-17 Collective knowledge of the highest governance Sustainable Development Not disclosed due to

body Governance Structure 201-4 Financial assistance received from government confidentiality requirementsAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 85Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

GRI Standard Disclosure Location GRI Standard Disclosure Location

202-1 Ratios of standard entry level wage by gender Not disclosed due to 305-1 Direct (Scope 1) GHG emissions Metrics and Targets

GRI 202: Market compared to local minimum wage confidentiality requirements

Presence 2016 305-2 Energy indirect (Scope 2) GHG emissions Metrics and Targets202-2 Proportion of senior management hired from Appendix I Quantitative

the local community Performance Table 305-3 Other indirect (Scope 3) GHG emissions Not collected

203-1 Infrastructure investments and services Working Together for the

GRI 203: Indirect supported Common Good GRI 305: Emissions

305-4 GHG emissions intensity Metrics and Targets

Economic Impacts 2016 305-5 Reduction of GHG emissions Strategy

2016 203-2 Significant indirect economic impacts Working Together for the Common Good 305-6 Emissions of ozone-depleting substances Not collected

GRI 204: (ODS)

Procurement 204-1 Proportion of spending on local suppliers Not disclosed due to

Practices 2016 confidentiality requirements

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and

other significant air emissions Compliant Emissions

205-1 Operations assessed for risks related to

corruption Not collected 306-1 Waste generation and significant waste-related

impacts Compliant EmissionsGRI 205: Anti-

corruption 2016 205-2 Communication and training about anti-corruption policies and procedures Business Ethics 306-2 Management of significant waste-related Management System

205-3 Confirmed incidents of corruption and actions taken Business Ethics GRI 306: Waste 2020 impacts Compliant Emissions

GRI 206: Anti- 306-3 Waste generated Compliant Emissions

competitive 206-1 Legal actions for anti-competitive behavior Business Ethics

Behavior 2016 anti-trust and monopoly practices 306-4 Waste diverted from disposal Compliant Emissions

301-1 Materials used by weight or volume Resource Conservation 306-5 Waste directed to disposal Compliant Emissions

GRI 301: Materials 301-2 Recycled input materials used Resource Conservation 308-1 New suppliers that were screened using

2016 301-3 Reclaimed products and their packaging GRI 308: Supplier Sustainable Procurement

materials Resource Conservation

environmental criteria

Environmental

308-2 Negative environmental impacts in the supply

Appendix I Quantitative Assessment 2016 chain and actions taken Sustainable Procurement302-1 Energy consumption within the organization Performance Table

302-2 Energy consumption outside of the Appendix I Quantitative 401-1 New employee hires and employee turnover Appendix I Quantitative

organization Performance Table Performance Table

GRI 302: Energy GRI 401: Appendix I Quantitative Employment 2016 401-2 Benefits provided to full-time employees that 2016 302-3 Energy intensity Performance Table are not provided to temporary or part-time employees

Employee Benefits

302-4 Reduction of energy consumption Strategy 401-3 Parental leave Employee Benefits

302-5 Reductions in energy requirements of products

and services Strategy 403-1 Occupational health and safety management system Work Safety

Compliant Emissions

303-1 Interactions with water as a shared resource

Resource Conservation 403-2 Hazard identification risk assessment and GRI 403: incident investigation Work Safety

303-2 Management of water discharge-related

GRI 303: Water and Compliant Emissions Occupational Health impacts and Safety 2018 403-3 Occupational health services Occupational HealthEffluents 2018

303-3 Water withdrawal Resource Conservation 403-4 Worker participation consultation and Democratic Communication

303-4 Water discharge Compliant Emissions communication on occupational health and safety Occupational Health

303-5 Water consumption Resource Conservation 403-5 Worker training on occupational health and safety Occupational HealthAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 86Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

GRI Standard Disclosure Location GRI Standard Disclosure Location

403-6 Promotion of worker health Work Safety 414-1 New suppliers that were screened using social Occupational Health GRI 414: Supplier criteria Sustainable Procurement

Social Assessment

403-7 Prevention and mitigation of occupational Work Safety 2016 414-2 Negative social impacts in the supply chain health and safety impacts directly linked by business Occupational Health and actions taken

Sustainable Procurement

GRI 403: relationships

Occupational Health 416-1 Assessment of the health and safety impacts of Appendix I Quantitative

and Safety 2018 403-8 Workers covered by an occupational health Work Safety

GRI 416: Customer product and service categories Performance Table

and safety management system Occupational Health Health and Safety

2016 416-2 Incidents of non-compliance concerning the Appendix I Quantitative

403-9 Work-related injuries Appendix I Quantitative health and safety impacts of products and services Performance TablePerformance Table 417-1 Requirements for product and service Reliable Customer Service

403-10 Work-related ill health Occupational Health information and labeling Responsible Marketing

404-1 Average hours of training per year per employee Appendix I Quantitative GRI 417: Marketing 417-2 Incidents of non-compliance concerning Performance Table and Labeling 2016 product and service information and labeling Responsible Marketing

GRI 404: Training 404-2 Programs for upgrading employee skills and Employee Training 417-3 Incidents of non-compliance concerning and Education 2016 transition assistance programs marketing communications Responsible Marketing

404-3 Percentage of employees receiving regular GRI 418: Customer 418-1 Substantiated complaints concerning breaches Appendix I Quantitative

performance and career development reviews Not collected Privacy 2016 of customer privacy and losses of customer data Performance Table

405-1 Diversity of governance bodies and employees Appendix I Quantitative GRI 405: Diversity Performance Table

and Equal

Opportunity 2016 405-2 Ratio of basic salary and remuneration of women Not disclosed due to

to men confidentiality requirements

GRI 406: Non- 406-1 Incidents of discrimination and corrective actions

discrimination 2016 taken Labor Rights

GRI 407: Freedom

of Association 407-1 Operations and suppliers in which the right to

and Collective freedom of association and collective bargaining may be Democratic Communication

Bargaining 2016 at risk

GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for Sustainable Procurement

2016 incidents of child labor Labor Rights

GRI 409: Forced or Sustainable Procurement

Compulsory Labor 409-1 Operations and suppliers at significant risk for

2016 incidents of forced or compulsory labor Labor Rights

413-1 Operations with local community engagement Not disclosed because it is

impact assessments and development programs not applicable and has little

GRI 413: Local relevance to the Group

Communities 2016

413-2 Operations with significant actual and potential Not disclosed because it is

negative impacts on local communities not applicable and has little relevance to the GroupAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 87Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

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

Sailun Group Co. Ltd. 27 Qingdao Factory

Sailun (Dongying) Tire Co. Ltd. Dongying Factory

Sailun (Shenyang) Tire Co. Ltd. Shenyang Factory

Zhucheng Yongan Rubber Technology Co. Ltd. Weifang Factory

Sailun (Vietnam) Co. Ltd. Vietnam Factory

ACTR CO. LTD. ACTR Factory

CART TIRE CO. LTD. Cambodia Factory

Shenyang Heng Tong Energy Co. Ltd. Heng Tong Energy

East China (Dongying) Intelligent Connected Vehicle Proving Ground Co. Ltd. East China Intelligent Connected Vehicle Test Site

27 As 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.About the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 88Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

Appendix VI Independent Assurance StatementAbout the Message from ECO-GOVERNANCE: ECO-PRODUCTION: ECO-PLANET: ECO-HARMONY:

Report Our Chairwoman About Us Advancing a New Era of Pioneering Quality-Driven Shaping the Future of Fostering a Culture of Diversity Appendix Sailun Group ｜ 2024 Sustainability Report 89Responsible Leadership Operational Excellence Sustainable Growth and Inclusion

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.Phone:+86 4006608329

E-mail: kcxfzzlglbgs@sailuntire.com

Address: No. 43 Zhengzhou Road Shibei District

Qingdao City Shandong Province China