The Report Commences 1

Sustainability (ESG) Report2 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 3

中材节能

中国建材

CONTENT中材节能国际交流会议中心中国建材

3 Opening Section

3 About This Report

5 Message from the Chairman

7 About Sinoma EC

15 Sustainability Governance

19 Responsibility Feature: Strategic

15 Board Statement Leadership in Overseas Green Energy

15 ESG Governance System 19 Strategic Planning and Layout

17 Stakeholder Communication 19 Reshaping the Development Ecosystem People-oriented to

18 Materiality Topic Assessment 22 Deepening International Exchanges Build a Better Society

18 Due Diligence 23 Empowering Local Development Together 4

65 Standardizing Employee Employment

66 Empowering Employee Development

68 Ensuring Employee Safety

Solid Action to Strengthen 1 Pursuing Green to 2 Empowerment through 71 Fulfilling Social Responsibilitiesthe Foundation for Protect Ecological Smart Innovation and Development Beauty Win-Win Cooperation 3

73 Outlook

27 Improving Corporate Governance 35 Climate Change Tackling 53 Strengthening Innovation-driven Development 75 Appendix

29 Strengthening Compliance and Risk Control 39 Strict Environmental Compliance 56 Advancing Digital and Intelligent Transformation 75 Key Performance Indicators

32 Upholding Business Ethics 40 Promoting Low-Carbon Transformation 58 Strengthening Quality Management 80 Index Table

45 Practicing Green Operations 60 Optimizing Customer Service 81 Definitions of Abbreviations

61 Enhancing Supply Chain Resilience 82 Feedback3 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 4

Opening Section

About This Report

Report Profile Information Sources

This report is the 2025 Sustainability (ESG) Report published by Sinoma Energy Conservation Ltd. ("Sinoma EC" "the The information and data disclosed in this report are derived from internal formal documents statistical reports annual

Company" or "we"). It showcases the ESG philosophy practices and major progress of Sinoma EC in 2025 aimed at reports and ESG practice cases of Sinoma Energy Conservation Ltd. The financial data involved in this report is sourced

strengthening communication and engagement with internal and external stakeholders. from the 2025 annual audit report. Unless otherwise specified there is no discrepancy in the financial data calculated

according to the aforementioned standards. Unless otherwise stated all financial data in this report are denominated in

RMB.Reporting Scope

Organizational Scope: This report takes Sinoma Energy Conservation Ltd. as the main body and covers all member Confirmation and Approval

enterprises within the scope of the Company’s consolidated financial statements.The Board of Directors and all directors of Sinoma EC guarantee that the contents of this report contain no false records

Timeframe: January 1 2025 to December 31 2025 (the "Reporting Period"). To enhance comparability and misleading statements or material omissions and they assume legal responsibility for the truthfulness accuracy and

completeness some content extends back to previous years where applicable. completeness of its contents.Reporting Cycle: This report is published annually consistent with the financial year.Report Access

Reporting Standards This report is available in Simplified Chinese and English in both printed copy and electronic PDF formats. The electronic

Sustainable Development Goals (SDGs) from the United Nations 2030 version (PDF) can be downloaded from the Shanghai Stock Exchange website (https://www.sse.com.cn) and the official

website of Sinoma Energy Conservation Ltd. (http://www.sinoma-ec.cn). In case of any discrepancy between the Chinese

GRI Sustainability Reporting Standards (2021 Edition) (GRI Standards 2021) by the Global Reporting Initiative and English versions the Simplified Chinese version shall prevail. For a print copy please contact us at 022-27788125.ISO 26000:2010 Social responsibility by the International Organization for Standardization

The Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)

by the Shanghai Exchange Contact Us

General Framework of the China Corporate Sustainable Development Report Guide (CASS-ESG 6.0) by the Chinese

Academy of Social Sciences

Board Office of Sinoma Energy Conservation Ltd. Tel: 022-86341590

Reporting Principles Address: Sinoma Energy Conservation Building Intersection of Fax: 022-86341588

Gaofeng Road and Tianning Avenue Beichen District Tianjin China

Materiality: The Company identifies the material topics for the year by reviewing the results of the annual materiality Email: sinoma-ec@sinoma-ec.cn

assessment and compiles this report centered on these topics. Postcode: 300400

Quantifiability: The Key Performance Indicators (KPIs) disclosed regarding historical data are measurable. Where

feasible information on the standards methodologies assumptions calculation tools and sources of conversion

factors used for quantitative data is disclosed.Balance: This report provides an unbiased representation of the Company's performance during the Reporting Period

avoiding selections omissions or presentation formats that may inappropriately influence the decisions or judgments

of readers.Consistency: Unless otherwise stated the disclosure and statistical methodologies used in this report are consistent

with those of previous years.5 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 6

Message from the Chairman

2025 marks the concluding year of the Company’s “14th and Biomass" and the large-scale application with multiple markets such as Southeast Asia Central Asia the MiddleFive-Year Plan” and a pivotal year to “Consolidate Foun- landmark projects taking root and the growth pole of new East Africa and South America establishing long-dations Explore New Horizons and Forge Ahead under energy business accelerating. In Engineering & Equipment term strategic partnerships with leading enterprises inPressure.” Facing a complex environment characterized we delve into industrial energy conservation waste-heat multiple countries. Through technology export investment

by accelerated global green transformation and profound utilization and solid waste resource recovery serving cooperation and localized operations we have not only

adjustments in the industry’s competitive landscape the global green development with energy-saving and carbon- achieved growth in commercial value but also activelyCompany has always kept the “Nation’s Most Fundamental reducing technical equipment. In the field of building fulfilled our social responsibility to improve local energyInterests” in mind. Committed to serving the national “Dual energy-saving materials we focus on green intelligent structures and promote livelihood development withCarbon” strategy we have stood at the forefront of the manufacturing premium products and brand development synchronized improvements in the resilience quality and

green revolution driving development through innovation to create high-quality green building materials. Calcium brand reputation of our international development.and leading the future with responsibility. We have success- silicate board products have been included in the Catalogue

fully achieved the goals set for the “14th Five-Year Plan” of Applicable Building Material Products for "Good House" Acting with Integrity Delivering on Social Expectationslaying a solid foundation for the new journey of the “15th Construction (2025). Through Responsible Value Creation. The CompanyFive-Year Plan.” always adheres to a people-oriented approach placing

Innovation-Driven: Forging Core Momentum Through employee growth at the core of corporate development and

Strengthening Foundations and Building a Solid Base Technological Self-Reliance. The Company upholds continuously improving the talent development and care

for Development Through Excellence in Governance. The technological innovation as the primary driver of system. We firmly establish the concept of safe development

Company consistently improves the modern state-owned development continuously increasing R&D investment in consolidating long-term mechanisms for workplace safety.enterprise governance system with Chinese characteristics. key areas such as energy conservation and carbon reduction We actively fulfill our corporate social responsibilities taking

By optimizing the "Three Meetings and One Management" technologies new materials and new energy equipment. A initiative in fields such as rural revitalization community co-

power and responsibility mechanism and deepening the series of major achievements including fourth-generation construction and public philanthropy ensuring that the

synergy among compliance risk control and integrity waste heat recovery power generation technology polymer fruits of corporate development benefit society more fairly

governance we have established a "Comprehensive material recycling technology and intelligent calcium and extensively striving to shape the image of a respected

Oversight and Prevention" system that integrates legal silicate board production lines have achieved industrial industry leader.affairs risk management internal control and compliance. breakthroughs. We strengthen the international application

We stimulate organizational vitality through deepened of green and low-carbon technologies exporting self- As the call to action sounds and thousands of vessels

reforms and enhance management efficiency through innovated technologies such as waste-to-energy and low- race forward action and diligence are the order of the

institutional building driving the modernization of the carbon building materials to countries along the "Belt and day. Standing at the new starting point of the "15th

corporate governance system and capabilities to new Road" contributing Chinese wisdom and solutions to global Five-Year Plan" Sinoma EC will always take "Promoting

heights providing a strong institutional guarantee for the green transformation and continuously injecting strong Green Revolution Lighting up a Low-Carbon Future" as

Company's steady and sustainable progress. momentum into the cultivation of new quality productive its goal. With a higher stance broader vision and more

forces. practical measures we will strive to build a world-class

Green Leadership Fulfilling Our Mission Through Industrial comprehensive green energy and environmental protection

Practice. The Company deeply practices the philosophy that Open and Win-Win: Expanding Development Horizons with service provider with leading technology excellent

"Lucid Waters and Lush Mountains are Invaluable Assets" a Global Perspective. The Company upholds the principles management and an outstanding brand. We will join

systematically building a green industrial ecosystem where of "Extensive Consultation Joint Contribution and Shared hands with all sectors of society to compose an even more

the three main businesses- "Clean Energy Engineering Benefits" deeply integrating into the global green industrial splendid green chapter in the grand journey of serving

and Equipment and Building Energy-Saving Materials" chain. Leveraging the synergistic advantages of R&D national strategies and advancing global sustainable

-develop in synergy. In the field of Clean Energy we focus on manufacturing engineering services and investment we development

integrated energy management of "Solar Storage Thermal have successfully expanded our business into emerging

Meng Qinglin

Secretary of the Party Committee and Chairman7 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 8

About Sinoma EC 股东会 ◎ Governance Structure

Shareholders' Meeting

Company Profile 董事会 Strategy and

Investment Committee

Party

◎ Company Overview Board of Nomination Committee Committee

Directors经理层

Sinoma EC is an A-share main board listed company specializing in the green energy and low-carbon industry (Stock Remuneration and

Assessment Committee

Abbreviation: Sinoma EC; Stock Code: 603126). Adhering to the development philosophy of "Green and Low-Carbon Discipline

Value Creation" the Company focuses on its core business advantages to form a green industrial system centered on Clean Expert Committee Management Audit Committee Labor Union Inspection Committee

Energy Engineering and Equipment and Building Energy-Saving Materials. With a global vision and deepened international Team

market layout we continuously cultivate new growth points for high-quality development striving to become a world-class

comprehensive green energy and environmental protection service provider.Innovation-Driven Building Technological High Ground. Relying on its National Enterprise Technology Center the Company

continuously promotes breakthroughs in key core technologies. It has accumulated over 500 authorized patents and led or

participated in the formulation of 18 national standards forming an independent intellectual property system covering key

green and low-carbon fields establishing an industry-leading position with solid R&D strength.Integrated Services Delivering System Solutions. The Company possesses full-chain service capabilities from R&D and design to

equipment manufacturing and intelligent operation and maintenance. We provide full-process one-stop integrated solutions

for scenarios such as industrial parks mining areas and zero-carbon parks supporting customers in energy efficiency

improvement and green transformation through deep synergy.Model Innovation Achieving Full-Cycle Value Creation. The company has deepened its expertise in the integrated Investment-

Construction-Operation (ICO) model accumulating extensive practical experience across various business models

including BOO BOOT and EMC. It has successfully implemented nearly 30 investment and operation projects establishing a

comprehensive model spanning from project design and construction to long-term operation. This approach ensures sustained

growth in client value and delivers stable returns on assets.Global Footprint Fulfilling Green International Responsibility. As a committed participant of the "Belt and Road" Initiative the

Company's business covers more than 40 countries and regions worldwide. We have designed and constructed over 500 clean

energy and energy-saving and carbon-reduction projects and established institutions in key regions such as Southeast Asia

Central Asia the Middle East and Africa. We continue to support global energy transformation with Chinese technology and

solutions with our international operation capabilities and brand influence becoming increasingly prominent.CNBM New Material Nigeria Board Secretary's Office

Co. Ltd. Nantong Wanda Boiler Co. Ltd

Legal Department

Sinoma (Yichang) Energy Conservation Wuhan Building Material Industry Marketing Department

New Materials Co. Ltd. Design & Research Institute Co. Ltd

Corporate Management

Department

Sinoma (Qianjiang) Energy Conservation Sinoma Energy Conservation

New Materials Co. Ltd. (Wuhan) Co. Ltd Investment Development

Department

Sinoma (Chizhou) Energy Conservation Sinoma Energy Conservation Finance Department

New Material Co Ltd. International Investment Co.Ltd.Internal Audit Department

Sinoma Yujian (Chongqing) Energy Sinoma Energy Conservation (Philippines)

Conservation New Material Co Ltd. Waste Heat Recovery Co. Inc.Safety & Environmental

Protection Department

Sinoma Energy Conservation (CEBU)

Navoiy Clean Energy Technology FE LLC General Administration Waste Heat Recovery Co. Inc. Department

Digitalization Department

Subsidiaries in Shijiazhuang Chuzhou Mpande Clean Energy Company Limited

Wuhai and other places

Central Research Institute

Sinoma Energy Conservation Zambia

Engineering Co. Limited Human Resources

Department

Party Organization

Department

Sinoma Energy Conservation Industrial &

Engineering (Malaysia) SDN. BHD. Party & Mass Work

Department

General Office of the Discipline

Sinoma EC Engineering Branch Inspection Commission

Party Inspection Office

Overseas Branches in Saudi Arabia

Dubai Etc. Discipline Inspection & Supervision Office9 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 10

Development Strategy ◎ Main The Company focuses on "Green and Low-Carbon" development advancing both strategic emerging

Businesses industries and traditional industries. It continuously increase the transformation and upgrading of The Company closely follows the national "Dual-Carbon" strategy and the global green development strategy focusing on traditional industries while strategically positioning future emerging industries to provide lasting

developing new quality productivity. Adhering to the concept of "Based on Reality Leveraging Advantages Innovation-driven momentum for high-quality development.and Green Development" the Company transforms these into core driving forces and new growth poles to promote high-quality

development.The Company remains steadfast in following the path of green and low-carbon development focusing on the three

main businesses of "Clean Energy Engineering and Equipment and Building Energy-Saving Materials" Through full industry chain Main Business Core Activities Key Entities

collaboration and global layout we building a green diversified and synergistic clean energy service platform. We will continue to

deepen the core capabilities of engineering and equipment actively explore and layout related diversified new material fields and

fully build the Company into a world-class comprehensive green energy and environmental protection service provider. Focus on the development and Sinoma EC International Investment Co. Ltd.efficient utilization of diversified Navoiy Clean Energy Technology FE LLC

c l e a n e n e r g y s u c h a s s o l a r

Clean Energy geothermal and biomass energy; Mpande Clean Energy Company Limited

actively layout energy storage

Clean Energy system integration and integrated Sinoma Energy Conservation Zambia Engineering Co. Limited

Based on both domestic and international markets we build a market-oriented specialized and operation platform for clean energy management services. Sinoma Industrial Energy Storage Tech (Tianjin) Co. Ltd.energy. Relying on technical and resource advantages in WHR geothermal energy new energy and energy storage our business

covers three major directions: clean energy power generation industrial and commercial energy storage and fossil fuel substitution.On the power supply side we comprehensively utilize various energy sources such as waste heat photovoltaics wind power

and energy storage to provide integrated green power solutions for industrial and commercial customers improving energy Focus on the efficient utilization Nantong Wanda Boiler Co. Ltd

efficiency. On the alternative energy side we actively promote the replacement of traditional fossil energy with biomass energy and of waste-heat and pressure low-

carbon recycling of solid waste Wuhan Building Material Industry Design & Research Institute hydrogen energy helping customers achieve deep decarbonization. On the resource recycling side we expand our solid waste Co. Ltd.resource utilization business around waste-to-oil conversion red mud and coal gangue comprehensive utilization promoting the Engineering and and deep cultivation in the R&D

development of a circular economy and forming a new pattern of coordinated development of clean energy and resource recycling. and manufacturing of efficient low- Sinoma EC Engineering Branch

Equipment carbon thermal energy equipment

a n d n e w b u i l d i n g m a t e r i a l Sinoma Energy Conservation Industrial & Engineering

equipment. (Malaysia) SDN.BHD.Engineering and Equipment

We adhere to the development direction of "Technology-Led Equipment-Supported and Global Service".The engineering service

business will continue to consolidate its leading advantages in fields such as efficient WHR power generation and green building Sinoma Energy Conservation (Wuhan) Co. Ltd.materials.Through technological innovation and equipment R&D we are deeply involved in energy-saving renovations of high-

energy-consuming industries such as cement steel and chemicals and are extending into new fields such as carbon materials Focus on the development of CNBM New Material Nigeria Co. Ltd.exporting Chinese standards and solutions. In terms of operation and maintenance services we extend high-value-added services to calcium si l icate board series Sinoma (Yichang) Energy Conservation New Materials Co. Ltd.provide equipment operation and maintenance energy efficiency optimization and digital “AI” services offering customers system products characterized by green Building Energy-

solutions covering the entire lifecycle. Our equipment manufacturing business is accelerating technological iteration and intelligent a n d l o w - c a r b o n p ro p e r t i e s Sinoma (Qianjiang) Energy Conservation New Materials Co. Ltd.service-oriented transformation focusing on developing product series such as waste incineration power generation waste heat saving Materials safety environmental protection Sinoma (Chizhou) Energy Conservation New Material Co Ltd.power generation biomass power generation boilers solar thermal power generation and energy storage equipment building a fireproofing moisture-proofing

new matrix of advanced and comprehensive environmental protection and energy equipment. By integrating resources across the corrosion resistance and high Sinoma Yujian (Chongqing) Energy Conservation New Material

entire chain of "R&D Design—Equipment Manufacturing—Engineering Installation—Operation and Maintenance Services" we promote adaptability. Co Ltd.an integrated service model of "Customized Equipment + Engineering Support + Long-term Operation and Maintenance" precisely

matching the diverse needs of our customers.Building Energy-Saving Materials

Following the development idea of "One Trunk Two Branches Multiple Leaves and Global Layout" we will fully leverage the The Company practices the core values of "Innovation Performance Harmony and Responsibility"

synergistic advantages of the Company's technology equipment and engineering services to continuously iterate and upgrade Cultural integrating the concept of "Green and Low-Carbon" into its corporate strategy. We stand united with

the product system.Drive the upgrade from single materials to systematic solutions. Leveraging overseas manufacturing bases the nation aligned with nature in step with the world and alongside our customers consciously

and brand resources actively connect with the differentiated needs of the global market accelerate the layout of production Philosophy

capacity and supply chain collaboration in Southeast Asia Africa and key countries and regions along the Belt and Road shouldering social responsibility keeping it close to heart and translating it into action. We strive

Initiative and promote the "Going Global" of the entire chain of technology standards equipment and services. By building to give back to society through high-quality development outcomes working together to create a

a global R&D production and sales system continuously enhance international market competitiveness and brand influence brighter future!

achieving a leap from product export to brand and standard export.11 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 12

Annual During the Reporting Period the Company continued to achieve positive results in green and low-carbon development technological innovation operation management and brand building. Its

Honors comprehensive strength and industry influence have steadily increased earning numerous honors

and recognition from government authorities industry associations and all sectors of society fully

demonstrating the Company's stable performance in promoting high-quality development.Key Business Awards Listed Company Awards

Sinoma Wuhan was officially recognized as a Hubei Provincial

"Enterprise Technology Center". The Sinoma Yujian Industrial R&D Wanda Power was honored

and Manufacturing Base Project and the Guangxi Guigang New with the title of "2025 Enterprise

Building Materials Project were awarded the First Prize and Second with Outstanding Contributions

Prize respectively for Outstanding Engineering Design in the building to High-quality Development."

materials engineering industry.The Company's "The latest generation of cement kiln waste-heat recovery technology" was selected as an 2025 Best Practice Cases for 2025 Best Practice for Listed Best Practice in 2024 Annual

"Enterprise New Quality Productivity Development Excellence Case" for 2025 by the China Enterprise Reform

and Development Society and was included in the MIIT's Recommended Catalogue of Recommended Listed Company Boards Company Board Office Report Performance Briefing

Energy-Saving Technologies and Equipment (2025).The Company's Chuzhou United Project Department won the title of Advanced Collective in the

national "Ankang Cup" competition.Board of Directors The Second Prize for 2025

The Pakistan D.G. Khan Waste Heat Power Plant Retrofit ProjectKenya Sponge Iron Waste Heat Recovery of Chinese Listed Excellent Achievements in

and Dolomite Carbon Reutilization Project of the Company were selected as "2025 Exemplary Cases Companies—The "Golden China's Enterprise Reform and

of International Cooperation in Industrial Green and Low-Carbon Development" by the Center for Round Table" Award Development

International Economic and Technical Cooperation (CIETC) of the Ministry of Industry and Information

Technology (MIIT).13 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report The Report Commences 14

Highlights Performance Empowerment through Smart Innovation and Win-Win Cooperation

Solid Action to Strengthen the Foundation for Development R&D investment reached RMB 117 million; accumulated over 500 authorized patents including over 80

invention patents; led or participated in the formulation of 18 national standards.Wanda Power built an automated welding system forming several industry-leading digital

The Board of Directors consists of 8 members including 3 independent directors representing 37.5% of practice achievements; Sinoma Chizhou launched the first digital factory and built the first digital

the Board. production MES control platform in the domestic calcium silicate board industry.Adhering to open cooperation and mutual benefit we established long-term and stable strategic partnerships

9 board meetings and 14 special committee meetings were held throughout the year.

with 22 global core major customers including Uzkimyosanoat (Uzbekistan State Joint Stock Company) Siam

15 legal and compliance training sessions were conducted covering 395 person-times. Cement Group (SCG) Everbright Environment and China Electrical Equipment Group Co. Ltd. (CEEG).

11 anti-corruption special training sessions were held covering 530 employee person-times and 30 Highly recognizing customer service levels. Wanda Power was honored as an "Excellent

board member person-times. Supplier" by Grandblue Environment.A total of 1824 suppliers have been incorporated into the management system. During the Reporting

Period qualification reviews were completed for 121 new suppliers and qualification change reviews were

conducted for 136 suppliers.Pursuing Green to Protect Ecological Beauty

11 member enterprises have obtained ISO 9001 or equivalent external quality management system

certifications.Fresh water consumption per RMB 10000 output value decreased by 51.36% year-on-year.Strengthen strategic synergy with units within the Group establishing a mechanism for "Demand

Total comprehensive energy consumption decreased by 1.52% year-on-year. Consultation Resource Sharing and Win-Win Interests" to form a

combined force for overseas expansion.Total Greenhouse Gas (GHG) emissions decreased by 15.16% year-on-year.Comprehensive energy consumption per unit of calcium silicate board substrate dropped to 75.01 kgce/m3

(reaching National Grade I standard).

100% compliance rate for exhaust gas and wastewater discharge with "zero" environmental People-oriented to Build a Better Society Together

complaints throughout the year.With a total workforce of 1813 employees the company organized 755 training sessions throughout the

year totaling 157669 training hours and reaching 26487 participants.Workplace safety investments reached RMB 13 million achieving 100% completion rate for hazard

rectifications. No serious or fatal workplace safety accidents occurred and no safety penalties were incurred.15 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Sustainability Governance 16

Sustainability Governance The Company has established an ESG governance structure with the Board of Directors at the core coordinated by the ESG

Working Group and executed by the ESG Management Department. This forms a working mechanism of top-down synergy

and horizontal linkage ensuring the orderly operation of the ESG governance structure and the effective fulfillment of

Board The Board of Directors is the highest coordinating and decision-making body for the responsibilities.Company's ESG work. It bears overall responsibility for ESG-related matters including

Statement formulating the Company's environmental social and governance policies strategies and ESG Governance Framework

targets; assessing and determining ESG-related risks and opportunities; promoting the

establishment of appropriate and effective risk management and internal control systems;

approving disclosures in sustainability reports; and ensuring the Company maintains suitable Board of As the core of ESG governance the Board directly formulates ESG strategies makes decisions on and

and effective management and internal control systems. Directors supervises ESG matters and leads the implementation of ESG concepts and strategies.ESG The Company continuously promotes the construction of its ESG management system to systematically build a sustainability management framework covering Environmental Social

Governance and Governance aspects. Leveraging its core strengths in energy conservation and carbon

reduction the Company integrates ESG concepts into development strategies major decision- Composed of senior management various departments and member enterprises the ESG Working System making and business layouts. By strengthening technological innovation green development ESG Group is responsible for identifying ESG risks formulating plans and targets for various ESG

and responsible operations the Company continues to create a sustainable development Working risks refining and decomposing the Board's ESG decisions and requirements for transmission to

model with core competitiveness. Group subordinate organizations such as relevant departments and member enterprises and providing

centralized feedback to the Board on ESG issues and progress discovered in actual operations.Strategic Directions

· Guiding strategic development through ESG empowering long-term value creation.Leading with ESG · Improving modern governance systems enhancing overall management efficiency. The Company’s ESG management department takes the lead in coordination with relevant

Sustainable Management · Analyzing external environment changes strengthening corporate development resilience. Department departments of the Company in implementing ESG policies and strategies.Governance · Advancing business development quality safeguarding stakeholder rights and interests.Green · Support global carbon neutrality goals promoting green and low-carbon transformation. Focusing on frontier ESG trends the Company actively participates in ESG standard research organizes and attends ESG

Development · Focusing on full-process carbon reduction strengthening environmental performance management. training effectively enhancing its professional ESG literacy and practical capabilities. Taking ESG as an important lever for high-

as the Core · Solidifying the ecological compliance baseline seizing green development opportunities. quality development the Company defines overall objectives core topics promotion methods and safeguard mechanisms for

ESG work. By integrating ESG management into corporate governance development strategies corporate culture and business

systems the Company achieves positive outcomes in promoting management and preventing risks.Driven by · Strengthening tech innovation leadership empowering green and low-carbon development.Technological · Improving innovation system construction enhancing core technological capabilities.Innovation · Driving the application of R&D achievements supporting industrial green transition.Based on · Adhering to honest and compliant operations strengthening the fairness and integrity baseline.Responsible · Persisting in customer value orientation improving product and service quality.Operation · Deepening responsible supply chain management promoting synergistic industrial development.· Practicing diversity and inclusion creating a fair employment environment.Human Capital · Safeguarding employee rights by law improving the labor protection system.and Safety as · Strengthening talent development mechanisms stimulating employee growth momentum.Safeguards · Solidifying the workplace safety defense line protecting employee health and safety.· Cultivating a harmonious corporate culture consolidating employee development synergy.Supported by · Serving green development strategies creating sustainable social value.Social Value · Assisting in rural revitalization promoting regional synergistic prosperity.Creation · Deepening overseas responsibility practices promoting international win-win cooperation.· Practicing social public welfare responsibility conveying the consensus on sustainability.Conducted ESG seminar activities in collaboration with Tianjin University17 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Sustainability Governance 18

Stakeholder Communication * Conducting Field Research on * Timely Disclose Relevant Information &

Community Conditions Reasonably Increase Investment to Ensure

Sinoma EC regards stakeholder communication as a vital component of sustainability governance. Centered on stakeholders * Planning Matters * Participating in Volunteer Activities the Implementation of Plans

such as shareholders and investors government regulators employees customers partners and the public the Company has * Environmental Protection & * Engaging in Daily Community * Promote Green Production & Protect the

established multi-channel and normalized communication mechanisms to promptly understand and respond to stakeholder Climate Change TacklingInteractionsCommunity & Ecological Environment* Building a Harmonious & Stable

concerns. The outcomes of these communications are integrated into business decisions and management improvements * Organizing Open House EventsMedia * Improve Public Philanthropy InvestmentCommunity

continuously enhancing governance transparency and sustainability levels. * Online Platforms & New Media * Participate in Community Activities* Occupational Safety and Health

Platforms for Communication and * Establish and Improve Occupational Safety

Interaction and Health Management

Stakeholder Communication and Implementation

* Regularly Attend Meetings or * Actively Join Listed Company Associations

* Compliance Operations &

Stakeholder Communication Channels Key Concerns Response Measures Events & Industry Associations and Various Public Sound Corporate Governance

* Maintain Daily Communication Welfare Organizations

* Environmental Protection

* Sustained High-Quality Operations Social * Online Platforms & New Media

* Leverage Membership Benefits

* Promoting Sustainable

* Periodic Reports * Corporate Performance * Continue to Drive Reforms Platforms for Communication and * Provide Financial and Technical SupportGroups Development Together

* Extraordinary Announcements * Shareholder & Creditor Interests * Improve Information Disclosure Interaction * Establish Cooperative Relationships

* Performance Briefing * Investment Returns Mechanisms

Shareholders * New Media & Online Interactions * Truthfulness Accuracy Timeliness * Enhance Corporate Value and

& Investors * Shareholder Dialogues & and Completeness of Information Profitability

Feedback Disclosure * Standardize Corporate Governance

* Safeguard Investor Interests Materiality Topic Assessment

In light of its actual development status and in accordance with the "Dual Materiality" requirements in The Guidelines No. 14

* Implement National Policies &

* Corporate Governance of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) Sinoma EC conducted a

* Compliance with Laws & Operate in Compliance with the Law * Compliant Operations materiality assessment and analysis of ESG topics from both "Financial Materiality" and "Impact Materiality" dimensions.Regulations * Accept Supervision & Inspections * Environmental Protection &

* Target Performance * Sustained High-Quality OperationsWorkplace Safety Combining annual operating conditions business development priorities external policy environments rating requirements

Assessments * Pay Taxes and Fees & Provide

Government * Promote Employment & Serve Local and industry trends the Company established an ESG material topics database. Internal and external stakeholders were invited * Information Submission Employment Opportunities

Regulators Economic Development* Special Reports & Visits * Utilize Policies Related to Green & to participate in the materiality topic assessment through interviews surveys and questionnaires. Following discussions and * Climate Change Tackling Low-Carbon Development reviews by the Company's management and integrating opinions from internal and external stakeholders the 2025 Materiality

Matrix was finalized.* Customer Meetings * Conduct Responsible Marketing Safeguard 2025 Materiality Matrix

* Hotlines Customer Information & Privacy Security Highly Important* Corporate Integrity

* Online Platforms & New Media * Strengthen Comprehensive Quality * Customer Relationships * Employee Rights and Compliant Employment

Platforms for Communication and Management* Product and Service Quality * Pollutant and Waste Management * Occupational Health and Safety (OHS)

Interaction * Pursue Continuous Technological Innovation* Product Innovation * Serving National Strategies * Product and Service Quality

* Market Research & Feedback * Standardize Safety & Environmental Customers * Environmental Health and Safety * Customer Service * R&D and Innovation

Collection Management(EHS) of Products * Supply Chain Management * Compliant Operations and Risk Management

* Product Packaging Information * Deliver Green Low-Carbon Healthy & Safe * Employee Training and Development

Products * Information Security and Privacy Protection

* High-Level Meetings

* Bidding Conferences * Fair Pricing & Prompt Payment * Energy and Resource Management

* Contract Negotiations * Pricing & Payment * Building Long-Term & Effective * Ecological and Environmental Protection

* Correspondence & Document * Long-Term Partnership Partnerships * Green Products and Services

Exchanges * Mutual Trust & Reciprocity Shared * Honesty and Integrity & Fair * Intellectual Property Rights (IPR) Protection * Corporate Governance

* Daily Business Communications Benefits Competition Partners * Climate Change Tackling * Environmental Management

* Online Platforms & New Media * Information Resource Sharing * Promote Supplier Accountability * ESG Governance * Employee Rights and Compliant Employment

Platforms for Communication and Risk Prevention * Establish Effective Communication * Public Welfare

Interaction Mechanisms * Rural Revitalization

* Anti-monopoly and Fair Competition

* High-Quality Operations

* Corporate Governance Moderately Important Highly Important

* Employee Representative * Protecting Employee Rights Financial Materiality

* Corporate Performance

Assembly * Offer Competitive Compensation

* Employee Rights

* Labor Contracts Packages

* Compensation and Benefits

* Suggestion Programs & Grievance * Enhance Employee Benefits

* Career Development Planning Due Diligence

Channels * Strengthen Employee Training Programs

and Prospects

* Factory Affairs Disclosure * Provide a Safe Working Environment and

Employees * Occupational Safety and Health During the Reporting Period Sinoma EC continued to conduct due diligence on sustainability-related impacts and risks centered * Regular Communication Health Protections

* Complaint Handling on key ESG topics. Under the overall coordination of the Board of Directors and management relevant functional departments

* Online Platforms & New Media * Promote Democratic Management

* Democratic Management

Platforms for Communication and Practices led the identification and assessment of risks related to environmental impact workplace safety and compliant operation in

* Fair Competition

Interaction * Establish Effective Communication sectors such as production and operation project implementation and the supply chain. Due diligence was conducted through

* Factory Affairs Disclosure

Channels daily screenings special inspections and internal assessments. Active response measures were taken for identified risks to

promote effective management of sustainability risks.Economy Environment and Society

Materiality19 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Responsibility Feature 20

Responsibility Feature 2025 marks a pivotal year for the conclusion of the "14th Five-Year Plan" and the strategic planning of the "15th Five-Year Plan." Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Sinoma EC has deeply implemented the

national "Belt and Road" Initiative deepened international cooperation expanded green industrial layouts and promoted

integrated local development serving major national strategies and empowering global green transformation through high-

Strategic Leadership in Overseas Green Energy quality international business operations.Strategic Planning and Layout Key Regions Business Development

The Company regards the "Belt and Road" construction as a key lever for serving national strategies and expanding

international space insisting on leading practical progress with top-level design. During the Reporting Period the

* Promoting the upgrade of the "WHR+" integrated energy model in Malaysia; the Malaysia

Company held an Internationalization Strategy Seminar to systematically summarize the achievements of international HUME project achieved the first overseas application of combined the fourth-generation

operations during the "14th Five-Year Plan" and conduct in-depth analysis of the development situation key regional cement waste heat recovery power generation technology and geothermal technology.layouts and business structure optimization for the "15th Five-Year Plan" period clarifying the direction and path for

* The "Sinoma EC After-sales (ASEAN) Service Center" was officially inaugurated in Malaysia;

the next stage of international development. following the handover of the CIMA project spare parts and maintenance contracts were

Southeast Asia extended to ensure localized technical support and spare parts supply.* Continuously expanding "WHR+" projects in markets such as Vietnam Thailand and

During the Reporting Period the Company's international operation indicators achieved Myanmar to strengthen regional influence.leapfrog growth

60 new overseas projects signed during the year.

Annual international revenue reached RMB 2.22billion accounting for 59.57% of total revenue a year-on- * Focusing on high-end technology applications and creating benchmark demonstration

projects in markets such as Saudi Arabia and the UAE.year increase of 24.31percentage points.* The Saudi Arabia RCC WHR project was successfully connected to the grid marking the first

Middle East application of the Company's ORC technology in the Saudi market; it is the world's largest-

scale WHR project in the cement industry using ORC technology.Reshaping the Development Ecosystem

The Company adheres to green and low-carbon development as its core orientation practices the "Major Markets

Major Customers Major Projects" strategy and continuously promotes the optimization and upgrading of its * Leveraging the Zambia zero-external-electricity industrial park project as a strategic pivotthe Company advanced the development of integrated energy systems such as “WHR +international business structure. We are transitioning from traditional engineering contracting toward an ICO model PV +Storage”

extending from the building materials field to diversified directions such as clean energy and green industrial system

solutions accelerating the construction of a new international green development ecosystem. * The Zambia Maamba 100 MW PV project commenced construction laying the foundation

for the Company's new energy business to deepen its presence in Africa.Africa

* Extend the business chain to provide long-term operation and maintenance services for

strategic partners.Deepening regional layout expanding a diversified cooperative ecosystem.* Strengthening cooperation with Everbright Environment CAMCE and SUS Environment

The Company deeply cultivates target national markets integrates into local energy transformation and securing all waste-to-energy equipment supply projects in Uzbekistan setting a new

industrial upgrading plans and continuously deepens government-enterprise partnerships. While strengthening record for Chinese efficient low-carbon thermal equipment in the Central Asian market.external cooperation we continuously improve internal synergy mechanisms to promote efficient linkage among * Signed multiple key cooperation agreements with Uzkimyosanoat (Uzbekistan State Joint

design equipment engineering and other entities. Using the construction of physical regional business centers Stock Company) and Karakalpakstan Building Materials Company covering green energy

as a lever we systematically drive the transformation of overseas business from "Scattered Operations" to Central Asia and building materials."Regional Cultivation." Currently a business center layout covering Southeast Asia the Middle East Africa and * The “Uzbekistan Navoiy Fertilizer Plant Green and Low-Carbon Project” has been

Central Asia has been initially formed dedicated to creating a new international cooperation ecosystem involving reported multiple times bymainstream media in Uzbekistan and other countries becoming

multiple parties and integrated industrial chains. a model for green energy cooperation under the“Belt and Road” Initiative.21 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Responsibility Feature 22

Responsibility Feature

Consolidating dominant businesses vigorously expanding new business areas. CASE Zambia Zero-external-electricity Industrial Park Project

The First Overseas "Zero Electricity Purchase" Integrated Energy Demonstration Project

The Company adheres to the development idea of "Stabilizing Incremental Volume and Expanding Growth"

promoting the synergistic development of various business sectors. In terms of Engineering Services the At the beginning of 2025 Sinoma EC launched the

Company has successively signed several key "WHR+" projects in countries such as Vietnam Thailand Malaysia Zambia Zero-external-electricity Industrial Park Project

and Kenya assisting the green transformation of local high-energy-consuming industries. The Uzbekistan INNO constructing a 39.5MW complementary WHR and PV

PANEL fiber cement board production line project was officially put into operation providing high-performance integrated power station with a total investment of

green building material support for infrastructure construction along the "Belt and Road." In Equipment approximately RMB 240 million. Upon completion the

Manufacturing the Company seized the rapid growth opportunities in the waste-to-energy markets in Central project will meet about 70% of the park's electricity demand supplying approximately 110 million kWh of

Asia and Southeast Asia signing orders for 13 ultra-high pressure waste incineration boilers in Uzbekistan green electricity annually. This will effectively reduce

achieving a milestone breakthrough in the Central Asian market. We also completed the R&D of 12 industrial power costs alleviate regional power shortages

refuse-derived fuel (RDF) waste incineration boilers for Thailand providing Sinoma technical solutions for reduce environmental pollution and enhance the

industrial solid waste treatment in Southeast Asia. park's green competitiveness.Optimizing business structure creating new models for green development. Expected Environmental Benefits: Annual average power generation of approximately 110 million kWh annual

saving of approximately 32800 tce and annual reduction of approximately 89500 tons of CO2 emissions.Building on its strengths in waste heat and residual pressure utilisation and equipment manufacturing the

Company has focused on clean energy as its primary strategic direction adhered to the dual-driven and

coordinated development of investment and construction together with engineering services and continuously

optimised its global business layout and core capability structure. In 2025 the Company achieved remarkable

results and multiple breakthroughs in the implementation of strategic clean energy projects and its international Deepening International Exchanges

green development footprint continued to expand. A number of benchmark green energy projects including the

green and low-carbon project of the Navoiy Fertilizer Plant in Uzbekistan the Zambia zero-external-electricity

industrial park project and the Maamba 100 MW photovoltaic power generation project were successively The Company consistently adheres to the principle of "Extensive Consultation Joint Contribution and Shared Benefits."

launched strongly promoting the transformation of its overseas business towards lower carbon intensity greater Seizing major international exchange opportunities such as the Shanghai Cooperation Organization (SCO) Summit

scale and higher-end development and further consolidating the Company’s comprehensive competitive it leverages high-level mutual visits as the core driver and strategic alignment as the vital link. In key "Belt and Road"

advantages and sustainable development foundation in the international market. regions — including Central Asia Southeast Asia and Africa it has established a multi-tiered broad-spectrum and

high-level international cooperation network. By transforming international cooperation resources into development

momentum it has solidified the foundation of mutual trust for the in-depth advancement of its international

operations.CASE The Navoi Nitrogen Fertilizer Plant in Uzbekistan

CASE Consolidating SCO Consensus Empowering Green Cooperation

The First Large-scale Overseas Integrated PV and Storage Energy Demonstration Project

Sinoma EC successfully launched the "300MW PV

+ 75MW Storage" green energy project for the During the 2025 SCO Summit Sinoma EC actively engaged

Navoi Nitrogen Plant. With a total investment with government departments and customers of countries

of approximately RMB 1.36 bill ion the project such as Uzbekistan and Myanmar achieving significant

provides stable and clean power for the plant. Upon progress in the advancement of key cooperation projects

completion the project will significantly reduce and the translation of consensus into results.electricity costs optimize the energy structure and

become a landmark achievement of the Company Mr. Meng Qinglin Chairman of the Company accompanied

green energy cooperation under the "Belt and Mr. Zhou Yuxian Chairman of the Group to meet with

Road" Initiative. the President of Uzbekistan as well as the Deputy Prime

Minister and the Minister of Energy reaching consensus

on multi-field cooperation and the implementation of

key projects. Liu Xin President of the Company attended

Expected Environmental Benefits: Annual average power generation of 704 GWh annual saving of approximately and spoke at the China Myanmar Economic Cooperation

212300 and Development Promotion Association contributing to tce and annual reduction of approximately 578000 tons of CO2 emissions. energy cooperation between Myanmar and China.23 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Responsibility Feature 24

Responsibility Feature

The Company leverages cooperation and exchange to

expand its international development space. Chairman

Meng Qinglin led a delegation to Zambia to attend the

groundbreaking ceremony for the Maamba 100MW PV

power generation project; held talks with the Minister The Company establishes multicultural communication platforms

of Finance of Lesotho on new energy projects; signed a across its overseas institutions fostering cultural integration between Chinese and foreign employees through diverse activities

Memorandum of Understanding (MoU) on green energy such as football matches International Women's Day celebrations

services with the eco-factory service company under and Mid-Autumn Festival symposiums in Nigeria. Furthermore

SCG; and reached multiple cooperation agreements with by providing essential living supplies to local staff during major

Uzkimyosanoat (Uzbekistan State Joint Stock Company) festivals the Company delivers humanistic care to consistently

covering clean energy energy-saving renovation enhance their sense of belonging. Deepening cross-cultural

and equipment upgrading continuously improving exchange and emotional

the international business layout and industrial chain Attending the groundbreaking ceremony of the Zambia connection

cooperation ecosystem. Maamba Project

NMNC continues to promote the

green upgrading of the plant area

and surrounding infrastructure

improving the environmental

Holding an International Women's Day symposium management system. By optimizing

o p e ra t i o n m a n a g e m e n t a n d

technical measures the Company

Meeting with the Minister of Finance in the Government of Signing a Memorandum of Understanding with The Siam reduces environmental impacts

during project implementation

Lesotho Cement Public Company Ltd promoting green development in

project locations.Empowering Local Development

The Company emphasizes both "Going Global" and "Integrating Locally" focusing on establishing long-term mutual

trust with local societies communities and employees actively fulfilling social responsibilities and promoting

livelihood integration and cultural exchange.During the Reporting Period the Company Organizing Football Matches Practicing green

leveraged its overseas business to create over responsibility

500 job opportunities for local communities.

We provided localized employees with

specialized technical and management

training for hundreds of localized employees

a n d e s t a b l i s h e d a c o m m e n d a t i o n

mechanism for outstanding local staff to

Empowering local incentivize talent development. Furthermore Addressing critical livelihood challenges NMNC provides free drinking water to surrounding

economic development by deepening collaboration with dozens villagers effectively improving local living conditions. Meanwhile Solid WHR Company in the

and talent growth. of local enterprises the Company has built Philippines has made multiple social donations to local communities fire departments and

stable partnerships that drive the vitality and Commendation for Outstanding Local Staff the Department of Environment and Natural Resources actively supporting the construction

sustainable growth of local economies. Caring for community and enhancement of the local public service system.development1Solid Action to Strengthen the Foundation for Development

Sinoma EC takes modern corporate governance as its

cornerstone integrating standardized decision-making

compliant operations and risk prevention and control

into the entire process of corporate development. By

continuously modernizing its governance system and

capabilities the Company provides a solid guarantee for

serving the national green development strategy and

achieving high-quality sustainable development.Key Topics

·Corporate Governance

·Anti-monopoly and Fair Competition

·Compliant Operations and Risk Management

Aligning with the United Nations Sustainable Development Goals

27 Improving Corporate Governance

29 Strengthening Compliance and Risk Control

32 Upholding Business Ethics27 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Solid Action to Strengthen the Foundation for Development 28

Improving Corporate Governance Investor Relations Management

The Company strictly follows laws and regulations such as the Measures for the Administration of Information Disclosure by

Listed Companies the Rules Governing the Listing of Stocks on Shanghai Stock Exchange and the Work Guidelines for the

Governance The Company strictly abides by relevant laws regulations and normative documents including Investor Relations Management of Listed Companies (2025 Revision). We continuously optimize our information disclosure the Company Law of the People's Republic of China the Securities Law of the People's Republic management systems and mechanisms to effectively protect the legitimate rights and interests of all shareholders especially

System of China the Measures for the Administration of Information Disclosure by Listed Companies minority investors.Development and the Rules Governing the Listing of Stocks on Shanghai Stock Exchange. We continuously The Company has formulated the "Investor Relations Management System" "Reception System for Investor Visits" and the improve our corporate governance structure and dynamically optimize the lists of matters and "Working System for Handling Investor Complaints" clarifying the workflow of investor relations management to ensure

procedures for the "Three Meetings" to ensure each governance body is scientifically positioned investors' right to know and vote on major matters. In 2025 the Company responded to over 50 investor inquiries through the

performs its duties precisely and operates efficiently. We have systematically revised the "Articles SSE E-Interaction platform telephone and other channels. Throughout the year we organized 4 performance briefings for

of Association" "Rules of Procedure for Shareholders' Meetings" "Rules of Procedure for Board periodic reports disclosed 55 announcements and actively participated in the Collective Reception Day for Investors of Listed

Meetings" and the "Working System for Independent Directors" and formulated the "Management Companies in the Tianjin Jurisdiction and the Group's collective performance briefings for listed companies. We proactively

System for Director Resignation" to continuously enhance standardized operations and demonstrated our operating results and development trends striving to maintain our integrity and positive image in the capital

governance efficiency. market.As of the end of the Reporting Period the Company has achieved cumulative dividends of nearly RMB 460 million. In 2025 the

Corporate Governance Structure cash dividend ratio increased to 40.15% continuing to return investment value to shareholders.Normalized Management Mechanism for Investor Relations

Top-level

Shareholders' Meeting Support

Strategy and Investment Committee The Chairman of the Board and the President attended the performance briefing providing

detailed introductions to the Company's development strategy and operations and offered

authoritative interpretations of investor questions.Audit Committee

Board of Directors Secretary of the Board

Nomination Committee Pre-meeting

Board Secretary's Office Preparation

Remuneration and Assessment Committee Management Team The Company collected investor concerns in advance. Specialized research was conducted with

relevant functional departments and member enterprises and responses were reviewed and

approved by responsible leaders.The Company continuously promotes the diversification of board membership optimizing the composition in terms of

professional background industry experience and gender. Members cover multiple professional fields such as engineering

technology financial management and legal compliance forming a complementary and synergistic decision-making Innovative

mechanism. This effectively enables the Board of Directors to play its role in strategic planning risk management and Presentation

sustainability. As of the end of the Reporting Period the Board of Directors consists of 8 directors including 3 independent After disclosing the annual report the Company promptly released "Annual Report at a Glance"

directors. In 2025 the Company held 9 board meetings and organized more than 10 training sessions for directors and senior graphics on its official WeChat account and website to present the year's operating performance

management to continuously improve their performance capabilities and governance levels. to investors.

2025

Normalized

Communication

The Company responded promptly to investor enquiries through various channels such as the

Meetings of Special Committees Shareholders' Meetings Board Meetings

SSE E-Interaction platform and telephone calls organised performance briefings for periodic

of the Board Held Held

reports actively participated in the collective investor reception day for listed companies in the

14 6 9 Tianjin jurisdiction and the collective performance briefing for the Group’s listed companies and Times Times Times promoted regular communication between the Company and investors.29 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Solid Action to Strengthen the Foundation for Development 30

Strengthening Compliance and Risk Control

Governance Sinoma EC continues to advance the construction of its compliance and risk control management

system. We have formulated management systems such as the "Compliance Management

System" "Internal Control Management System" and the "Risk Management Measures" along

with detailed rules like the "Working Guidelines" for Compliance Evaluation striving to enhance

the Company's level of law-based governance and compliant operations to provide a solid legal

guarantee for high-quality development.Under the leadership of the Party Committee with the Board of Directors making overall decisions

and the Management organizing implementation the Company has established a Compliance

Management Committee and appointed a Chief Compliance Officer (CCO). The Legal and Tax Policy Training for Central Enterprises Risk Management and Negotiation Training for

Compliance Department leads the compliance management work forming a governance International EPC Contracts

structure with clear responsibilities and efficient synergy.Centering on key areas such as overseas operations business partner management and investment management the

Strategy The Company adheres to "Risk Prevention and Compliance Promotion" maintaining bottom- Company has formulated and implemented special compliance management systems and guidelines embedding compliance line thinking and integrating compliant development and risk control throughout the entire requirements into business processes and decision-making. The Company continues to promote the construction of a "Four-

process. Regarding operating mechanisms we incorporate compliance management into the in-One" integrated compliance and risk control mechanism—linking legal affairs risk management internal control and

comprehensive risk management system implementing closed-loop management across compliance management. Through compliance reviews risk alerts process controls and targeted remediation efforts risk

risk identification assessment compliance review supervision inspection and accountability prevention requirements are embedded throughout the entire business management process. This approach effectively

rectification. Compliance reviews are conducted for major decisions important contracts and key enhances risk prevention capabilities and compliance governance standards in key areas.businesses to strengthen risk prevention in key areas. During the reporting period the company routinely conducted risk assessments for overseas operations strengthened risk

prevention and control in key areas and vulnerable links and maintained high sensitivity to high-incidence and latent risks. The

Company Management Department organized relevant departments to carry out supplier evaluations effectively preventing

supply chain risks from entering the system. Full coverage of compliance evaluations was achieved for key member enterprises

driving the implementation of corrective actions with a completion rate exceeding 90% and continuously promoting the

optimization and upgrading of the management system.◎ Strengthening Audit Supervision

The Company has formulated and released systems such as the "Internal Audit Management System" "Internal Audit Work

Specifications" and the "Management Measures for Audit Rectification" to ensure the comprehensiveness and integrity of the

Management of Impacts Risks and Opportunities audit systems for the Company and its member enterprises. The newly added "Administrative Measures for Overseas Auditing

(Trial) " strengthens the supervision and management of overseas entities. The Company continues to reinforce its audit

supervision functions taking internal audit as a key lever for improving corporate governance and preventing major risks.◎ Comprehensive Risk Management The Company has established and improved an audit result reporting and rectification tracking mechanism ensuring timely

reporting of audit findings to drive problem rectification and the fulfillment of responsibilities. During the Reporting Period the

The Company has established a comprehensive risk management system referencing the COSO Enterprise Risk Management Company systematically conducted audit and supervision work centered on key areas and critical links completing 27 audit

(ERM) Framework constructing a "Three Lines of Defense" risk control mechanism. This forms a closed-loop management projects of various types throughout the year effectively solidifying the foundation for internal control and risk prevention.

process covering risk identification and assessment major risk response monitoring and improvement and summary

reporting thereby continuously enhancing the Company's risk prevention and governance capabilities. The Company regularly

conducts annual major risk assessments strictly implements quarterly risk monitoring and organizes risk screenings in key ◎ Tax Compliance

areas to promote the deep integration of risk management and business management.The Company attaches great importance to tax compliance and tax risk management regarding law-based tax payment and

◎ Internal Control and Compliance Management steady operation as vital components of corporate governance. By standardizing accounting strengthening R&D management and conducting continuous training we have systematically enhanced our tax compliance level and the capacity building of

relevant professionals. During the reporting period the Company paid taxes of RMB 157 million a year-on-year increase of

Building on the establishment of the “Comprehensive Compliance” system the Company uses evaluation review and rectification 50.96% compared with RMB 104 million in 2024. It also powerfully demonstrates the Company's responsibility and commitment

as a lever to systematically build a synergistic mechanism for the “Three Lists” covering risk identification position responsibilities to paying taxes in accordance with the law and in good faith taking initiative and responsibility and actively serving the local

and process control continuously solidifying the foundation of compliance management. We actively conduct special compliance economic and social development.training to strengthen the awareness of law-based and compliant operations among all employees creating a positive atmosphere

of “Knowing Abiding By and Performing Duties in Compliance with Regulations.”31 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Solid Action to Strengthen the Foundation for Development 32

Metrics and The Company aims to enhance its capability for law-based and compliant operations as well as its level of compliance risk prevention and control continuously strengthening the Upholding Business Ethics

Targets construction of the compliance management system and compliance culture. During the

Reporting Period the Company organized 15 special training sessions on law-abiding and

compliance covering 395 person-times and achieving full coverage of compliance training Anti-monopoly and Fair Competition

for personnel in core positions. The company's achievements in fostering a compliance

culture have been recognized as a "2025 Typical Case of Corporate Integrity Management" by

the China Enterprise Reform and Development Society. The Company attaches great importance to anti-monopoly compliance and fair competition management strictly abiding by

the Anti-monopoly Law of the People's Republic of China and systematically embedding requirements for anti-monopoly and

2025 prevention of unfair competition into the compliance management system. We have improved the "Compliance Manual" clarifying anti-monopoly principles prohibited behavior lists and risk control requirements for both domestic and overseas scenarios. We

continue to strengthen the identification and prevention of risks such as monopolistic agreements unfair competition and abuse of

Number of Compliance Training Sessions Conducted Compliance Training Performance dominant market position promoting the construction of a fair and orderly market competition environment.

15 395 During the Reporting Period the Company actively carried out anti-monopoly compliance training and promotion. We Times Person-Times organized management and key personnel to attend special training and legal lectures to systematically study the practical

points risk identification preventive measures and typical cases of the Anti-monopoly Law of the People's Republic of China

continuously enhancing employees' understanding and execution of anti-monopoly compliance requirements.2 Pursuing Green to Protect Ecological Beauty

Sinoma EC fully aligns itself with the national "Dual Carbon"

strategy taking green and low-carbon development as

its core theme. The Company systematically advances

its clean energy layout the application of energy-saving

and environmental protection technologies and green

operations management. By continuously enhancing

environmental governance capabilities and resource

utilization efficiency the Company actively leads the

industry's green transformation and upgrading effectively

discharging its ecological responsibilities as a central SOE.Key Topics

· Environmental Management

· Green Products and Services

· Pollutant and Waste Management

· Energy and Resource Management

· Climate Change Tackling

· Ecological and Environmental Protection

Aligning with the United Nations Sustainable Development Goals

35 Climate Change Tackling

39 Strict Environmental Compliance

40 Promoting Low-Carbon Transformation

45 Practicing Green Operations35 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 36

Climate Change Tackling Risks/Opportunities Category Risk/Opportunities Description Response Strategy

* Develop emergency response plans for extreme

weather events (typhoons torrential rains blizzards

· Production operations disrupted or etc.) or natural disasters.Governance safety incidents occurr ing due to * Interconnect with the urban management information

Acute extreme weather (typhoons torrential platform to enhance the timeliness of information

ra ins b l i zzards e tc . ) o r natura l

Sinoma EC has established a climate change governance system with a clear hierarchy and well-defined responsibilities acquisition enabling early prediction of extreme disasters.strengthening the overall guidance of top-level design for "Dual Carbon" work and climate risk control. The Company has set up weather or natural disasters and facilitating rational

management risk mitigation and the evacuation of

a "Dual Carbon" Work Leading Group as the core body for coordinating climate change and "Dual Carbon" affairs. The Chairman Physical personnel and materials.serves as the group leader with the President and Vice President as deputy leaders and heads of core business departments Risks

and subsidiaries as members. This group forms a synergistic mechanism with the Ecological and Environmental Protection * Global warming will cause sea levels to

Management Committee building a solid foundation for climate governance through collaborative division of labor. The Safety * Site selection planning and design for new projects rise along with persistent heatwaves must account for sea level rise impacts.and Environmental Protection Department acting as the daily management department for both bodies is responsible for the droughts and wildfires increasing

execution coordination supervision and data aggregation of climate change-related work fully implementing strategies for the frequency of natural disasters and * Continuously monitor sea level rise trends.Chronic

energy conservation ecological protection and "Dual Carbon" initiatives. leading to water shortages. This may

disrupt the normal operation of company * Implement water-saving equipment upgrades

to enhance water recycling rates and resource

To promote the response to climate change and the implementation of "Dual Carbon" goals the Company continuously facilities and equipment impacting utilization.strengthens institutional safeguard mechanisms incorporating "Dual Carbon" into the "Management and Control Procedures production efficiency.for Energy Conservation and Ecological Environmental Protection" and including carbon reduction achievements in the annual

performance appraisals of its subsidiaries. In 2010 Sinoma EC joined the Wuhan Energy Conservation Association the first

* Regulatory bodies and capital market

carbon reduction alliance organization in China leveraging the platform to connect with industry resources and engage in ra t i n g i n d i c e s a re c o n t i n u o u s l y

carbon reduction exchanges which laid the foundation for the construction of the Company's climate governance capabilities. * Regularly monitor relevant regulations and policies Policy and raising requirements for corporate to promptly optimize internal rules and workflows

environmental information disclosure.Legal ensuring compliance with—or even exceeding—Failure to disclose environmental

regulatory requirements.information as required may expose

Strategy companies to compliance risks.Risks * Under the "Dual Carbon" goals

The Company fully integrates the concepts of energy conservation and carbon reduction into the entire process of production strengthening low-carbon technological * Target strategic emerging industries by increasing

innovation has become an inevitable

and operation. Centered on the "Dual Control" targets of total carbon emissions and intensity it systematically promotes R&D investment and industrial cultivation. Through path for the company. However this

energy structure optimization and the upgrading of key processes. The Company effectively transforms green development technological innovation and product iteration Technology will also bring economic pressures

requirements under the guidance of the "Dual Carbon" strategy into concrete actions injecting a systematic driving force into develop high-value-added products with a focus on in the short term due to new R&D

energy-saving equipment new materials equipment

the acceleration of its comprehensive green transformation and sustainable high-quality development. investments the commercialization of and new energy storage equipment.new achievements and the promotion

Facing the global trend of green and low-carbon development the Company remains driven by technological innovation of new technologies.supported by industrial synergy and guided by green development. It actively promotes the efficient utilization of energy and Transition * The "Dual Carbon" goals are driving

the green upgrading of industrial structures fully leveraging the foundational and supporting roles of its energy-saving and Risks sustained growth in market demand

carbon-reduction technologies and services in driving the green and low-carbon transition. By continuously strengthening for energy-saving and environmental * Intensify technological breakthroughs around

its technological leadership industrial driving force and industry influence in the field of carbon reduction the Company protection industries. As more players key green applications developing eco-friendly

contributes Sinoma EC's strength to global sustainable development. enter the field the company faces technologies and products to meet market demands.Market heightened competition risks. * Continuously monitor environmental and climate-

* Any adverse environmental or climate related public sentiment proactively engage

change practices or delayed responses stakeholders in communication and enhance

Management of Impacts Risks and Opportunities may damage the company's reputation information disclosure.leading to investor and customer attrition

that could adversely impact operations.Climate risk has long become a core consideration for enterprises in formulating long-term strategies and conducting daily

operations. In recent years climate change has intensified with extreme weather events such as hurricanes floods and * As climate and sustainability issues * Accelerate the company's green and low-carbon

droughts sea-level rise ecosystem changes and increasingly stringent environmental regulations affecting corporate g a i n p r o m i n e n c e s t a k e h o l d e r s transformation to enhance the climate resilience and

sustainable development. are increasingly focused on green mitigation benefits of its operations.Reputation manufacturing and climate change.As an industry-leading comprehensive green energy and environmental protection service provider the Company firmly Failure to promptly address stakeholder * Develop contingency plans for environmental

implements the "Dual Carbon" goals. We persist in accurately identifying the risks and opportunities brought by climate expectations may expose the company emergencies to strengthen emergency response

change—from physical risks and transition risks to market opportunities—and actively formulate response strategies taking to reputational risks. capabilities.corresponding measures to mitigate potential impacts.37 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 38

Risks/Opportunities Centering on the "Dual Carbon" strategic goals the Company continuously improves

Risk/Opportunities Description Response Strategy Metrics and

Category its energy and GHG emission management indicator system. By incorporating key

* Actively pursuing wastewater and waste recycling vigorously Targets environmental performance indicators into annual business management and responsibility

developing a circular economy and reducing the consumption of assessments the Company drives the multi-level implementation of energy-saving and

natural resources. emission-reduction targets while regularly tracking and evaluating performance results.* Implement energy-saving upgrades in production operations

continuously enhance WHR and cascading utilization optimize

energy system operations and management models improve As of the end of 2025 the Company successfully achieved its core environmental and climate-related targets:

* Promoting energy conservation and comprehensive energy efficiency and reduce fossil fuel

Resource c o n s u m p t i o n re d u c t i o n t h ro u g h consumption and GHG emissions.e n h a n c e d e n e r g y a n d re s o u rc e 3

Efficiency utilization efficiency helps lower the * Creating low-carbon office and production environments. The

The comprehensive energy consumption per unit of calcium silicate board substrate was 75.01 kgce/m representing a

company's operational costs. headquarters building utilizes a ground-source heat pump heating 3.21% decrease compared with the national Level-I limit for energy consumption per unit of product.system to reduce greenhouse gas and waste heat emissions

improving environmental quality and lowering pollution control

costs. Additionally the factories of Wanda Power and Sinoma CO2 emissions per RMB 10000 output value for calcium silicate board substrates was 0.93 tons a year-on-year decrease

Chizhou have implemented PV projects achieving an average of .annual self-generated and self-consumed electricity volume of 10.98%

over 2 million kWh over the past three years significantly driving

green office and green production initiatives. Fresh water consumption dropped to 1.07 tons/RMB 10000 of output value representing a year-on-year reduction of.* Enhancing the proportion of renewable energy used in 51.36%

manufacturing and office operations will further reduce operational

* Increasing the use of clean energy GHG emissions and strengthen the carbon competitiveness of the

Energy i n c l u d i n g t h e d e v e l o p m e n t a n d company's products and services.Regarding GHG emission management the Company conducted a comprehensive calculation of Scope 1 and Scope 2

utilization of solar and biomass energy emissions and promoted emission reduction actions with the phased goals of reducing total energy consumption and total

Sources can effectively reduce the company's * Explore fuel substitution pathways in building materials production carbon emissions. During the Reporting Period the Company's total comprehensive energy consumption decreased by 1.52%

future production costs. by integrating low-carbon construction technologies and

industrialization projects advancing research on new energy year-on-year and total CO2 emissions decreased by 15.16% achieving the "Dual Reduction" targets. Total GHG emissions

applications in manufacturing processes. dropped to 21675.24 tCO2e a decrease of 3872 tons year-on-year demonstrating significant overall emission reduction

results.* Continuously expand into the clean energy and environmental

* Dr iven by government advocacy protection sectors including biomass power generation

and carbon neutrality commitments photovoltaic power generation geothermal energy utilization

consumers increasingly prior i t ize and energy storage. Provide clients with diversified reliable and 2025

Products green and environmentally friendly efficient clean energy engineering services high-efficiency low-

considerations in purchasing decisions.and Services carbon thermal equipment and building energy-saving materials.The company's energy-efficient eco-

fr iendly products and innovat ive * Advance the development of a clean energy operations and

solutions address emerging market maintenance management platform while continuing to promote

Scope 1 GHG Emissions Scope 2 GHG Emissions

demands creating growth opportunities. the application of the engineering management project platform

in construction projects.GHG 6238.87 tCO2e 15436.37 tCO2e

* Against the backdrop of intensifying

global climate change and mounting Emission

pressure to reduce GHG emissions

g o v e r n m e n t s w o r l d w i d e h a v e Category

successively set carbon neutrality targets Total GHG Emissions (Scope 1 + Scope 2 Emissions)

* Centering on global carbon neutrality goals focusing on the three

accelerating efforts to optimize energy

Market core businesses of Clean Energy Engineering & Equipment and structures and drive green low-carbon Building Energy-saving Materials and actively advancing energy tCO e

industrial transformation. Continued 21675.24 2

conservation and carbon reduction.policy reinforcement is propelling the

rapid development of the clean energy

sector presenting significant strategic

opportunities for the company's core

business growth.* Conducting research on climate change-

* Focusing on the green and low-carbon development strategy

related business and fostering industry

strengthen research on climate change-related policies and

exchanges will enhance the company's

Resilience technologies deepen industry exchanges and cooperation capacity to address climate risks and advance technological and operational deployment in energy

seize climate opportunities while

conservation carbon reduction and clean energy sectors and

shaping a brand image committed to

enhance the company's climate change adaptation capabilities.social responsibility.Opportunities39 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 40

Strict Environmental Compliance ◎ Emergency Management

The Company strictly executes the requirements of documents such as the "Regulations on the Management of Comprehensive

Emergency Response Plans." We have established and improved rapid response mechanisms for production safety accidents

Governance Sinoma EC strictly abides by laws and regulations such as the Environmental Protection Law environmental emergencies and various social emergencies to ensure that emergency teams can respond quickly handle of the People's Republic of China and the Atmospheric Pollution Prevention and Control Law efficiently and react precisely thereby minimizing casualties property loss and environmental pollution. We established

of the People's Republic of China. We have formulated institutional documents including the "Provisional Measures for Accountability for Ecological and Environmental Issues" clarifying the standards procedures

the "Sinoma Energy Conservation Ltd. Management Manual" "Management and Control and entities for accountability. Simultaneously contractors are required to maintain sufficient reserves of emergency rescue

Procedures for Energy Conservation and Ecological Environmental Protection" and the equipment and supplies and organize environmental emergency drills on a regular or irregular basis."Ecological and Environmental Protection Responsibility System." The Company signs annual

responsibility statements for energy conservation and ecological environmental protection

with its subsidiaries each year clarifying targets responsibilities and supervision mechanisms. ◎ Environmental Education

Evaluation results are incorporated into the performance management system forming a

closed-loop management mechanism characterized by fulfilled responsibilities institutional Focusing on the requirements of ecological protection energy conservation and carbon reduction the Company systematically

guarantees and scientific evaluation. organizes policy communication and special training. The Company conducted a cumulative total of 18 targeted training

sessions throughout the year covering various departments subsidiaries and key personnel with a total of over 1200 person-

The Company has constructed a three-level ecological and environmental protection times trained.organizational structure. The Ecological and Environmental Protection Management

Committee handles overall deployment while the Safety and Environmental Protection

Department is responsible for daily management. Units at all levels fully implement the CASE Sinoma Wuhan Carries Out a Series of Themed Energy-Saving and Environmental

environmental protection responsibility system to ensure the efficient and synergistic Protection Promotion Activities

promotion of environmental protection work.From June 23 to 29 2025 the Safety and Environmental Protection Department of Sinoma Wuhan organized a series of

Relying on the ISO 14001 Environmental Management System the Company promotes activities centered on the themes of "Energy Efficiency Leading with Innovation" National Energy Saving Publicity Week

Sinoma EC ISO 14001 standardized management. As of the end of 2025 10 member enterprises have passed the and "Carbon Pioneers Moving Towards a Green Future" National Low Carbon Day. By releasing themed promotional

System Certification system certification. Sinoma Yichang was selected for the Hubei Provincial Green Factory list videos and science popularization guides the Company popularized low-carbon concepts and simultaneously

reflecting the continuous improvement in environmental compliance and green operation launched the "Low-carbon Life Starts with Me" initiative. This guided employees to practice habits such as green

levels. commuting and resource-saving office practices transforming environmental protection concepts into tangible actions

and effectively strengthening the energy-saving and environmental awareness of all staff.Strategy Adhering to Xi Jinping's Thought on Ecological Civilization as the fundamental principle the Company fully integrates ecological and environmental protection into its medium- and

long-term development strategies. We continuously improve the environmental compliance

management system and strengthen full-chain risk prevention and control capabilities. Metrics and Targets

Centering on the general direction of "Cleaner Production Comprehensive Governance

Energy Conservation and Carbon Reduction and Systematic Prevention" the Company 2025 the Company's key targets and their completion status were as follows:

focuses on promoting the modernization of environmental governance capabilities and the

systematization of supervision mechanisms ensuring that ecological and environmental

protection permeates every stage and process of production and operation. In 2025 the Achieved "zero" environmental complaints

Company's total environmental investment amounted to RMB 3.1501 million.No negative benchmark cases or public criticisms from energy-saving and environmental protection inspections no

environmental emergencies no administrative or criminal penalties and no public opinion complaints or reports

Management of Impacts Risks and Opportunities

Promoting Low-Carbon Transformation

◎ Environmental Risk Control

The Company has established a dynamic environmental risk assessment mechanism to comprehensively identify potential The Company actively practices the "Dual Carbon" strategy and deeply cultivates the green energy and low-carbon business

environmental impacts from external factors such as laws and regulations and the natural environment as well as internal sector. Leveraging its leading technical strength and extensive project experience in clean energy utilization low-carbon

factors including equipment operational processes and materials. Through systematic evaluation various environmental and environmental engineering contracting equipment R&D and manufacturing and green building materials R&D the

hazards and compliance risks are accurately identified. In 2025 the Company conducted normalized environmental hazard Company efficiently integrates resources across business segments—including design supply construction and O&M. By

screenings through various methods such as self-inspection cross-inspection and supervisory inspection identifying a total of deeply integrating with application scenarios such as industrial parks mining areas and urban residential zones the Company

266 ecological and environmental hazards throughout the year all of which have completed closed-loop rectification. provides one-stop life-cycle solutions ranging from diagnostic planning and customized design to key equipment supply and

intelligent O&M assisting customers in achieving energy conservation carbon reduction and green development.41 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 42

Deepening Green Services

CASE Mafeteng Photovoltaic Power Station Project in Lesotho

◎ Clean Energy and Integrated Energy Services

The Company continuously expands green service scenarios in the clean energy field focusing on clean energy power Constructed by a consortium of Sinoma EC and TBEA the Mafeteng PV Power Station is a significant outcome

generation energy storage system integration and multi-energy complementary solutions to assist industrial parks and of the Forum on China-Africa Cooperation between China and Lesotho as well as Lesotho's first large-scale PV

enterprises in optimizing energy structures and reducing carbon emission intensity. project. During construction the project created over 1000 local jobs and trained a group of professional PV

engineers enhancing local technical capabilities. Since its grid connection in April 2023 the station has generated

over 100 million kWh effectively alleviating local power shortages and supporting local energy transformation

and structural optimization and received international coverage from People's Daily in 2025.Promoting During the Reporting Period relying on benchmark projects such as Hunan Yuneng and Lopal Tech the Company

the "WHR+" promoted "Grate Cooler Transformation + WHR Utilization" in the lithium carbonate industry. The HUME project in

multi-energy Malaysia achieved the first joint export of the fourth-generation cement waste heat power generation technology and geothermal technology. The Zambia zero-external-electricity industrial park project created a "WHR + PV" multi-

complementary energy complementary solution constructing the first overseas " Zero Externally Purchased Electricity" project. The

model Ngaie project in Kenya explored a new model of integrated "WHR + Biomass" development.CASE Taizhou 50MW Fishery-PV Complementary Power Generation Project

Sinoma Wuhan adopted a "PV power generation + fishery" 3D model in the 50MW fishery-PV complementary

project in Taizhou Jiangsu Province achieving synergistic development of clean energy utilization and ecological

aquaculture. Equipped with an energy storage system to enhance new energy consumption efficiency the project

promotes intensive resource utilization and regional green transformation.Achieving new progress in energy storage

business

Positioning in new fields of low-carbon energy The Company continues to promote the application

cycles of energy storage technologies in energy systems.Centered on products such as solid thermal storage

Responding to national strategies and practicing green phase-change thermal storage and adsorption

development philosophies the Company actively thermal storage the Company enhances new energy

positioned itself in the field of circular utilization of consumption capabilities and the operational stability

organic polymer materials. of energy systems providing key support for the large-

scale application of clean energy.CASE Malaysia HUME Cement 18MW WHR Power Generation Project ◎ Energy-saving and Environmental Engineering Services

Leveraging its advantages in engineering and equipment the Company continues to deepen its energy-saving and carbon-

Sinoma EC and HUME Cement a subsidiary of Malaysia's Hong reduction service capabilities providing systematic energy-saving and environmental solutions for industries such as cement

Leong Group officially signed an 18MW WHR EPC contract in metallurgy chemicals and new energy materials..Kuala Lumpur. This project innovatively integrates industrial waste

heat recovery with geothermal cooling technology to provide

efficient cooling services for cement plant buildings exploring

a new pathway for green and energy-saving development in Sinoma EC focuses on the two core tracks of industrial energy conservation and

industrial scenarios. This “Waste Heat + Geothermal” project will clean energy simultaneously promoting the implementation of green energy

fill the technological gap in coupled cooling through industrial projects at home and abroad. In 2025 a cumulative total of 21 grid-connected

waste heat and geothermal energy in Southeast Asia providing Cultivating the Green Energy power generation projects were completed practicing "Dual Carbon" goals

a replicable “Sinoma Solution” for energy conservation in Field Driving Large-Scale through technological innovation and international layout.industrial buildings across tropical regions worldwide. Project Implementation43 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 44

◎ Creating Green Factories

Industrial Energy Conservation Projects Sinoma EC actively practices the philosophy that "Lucid Waters and Lush Mountains are Invaluable Assets" implementing major

national regional strategies by positioning calcium silicate board production bases in several key regions at home and abroad.Five projects of the Engineering Branch were successfully connected to the grid with a total

installed capacity of 46MW. Notably the Lunan United project achieved intelligent one-button While implementing green coverage each plant aims for energy reduction pollution and carbon reduction and quality and

start/stop and unattended operation with O&M efficiency reaching industry-leading levels. efficiency enhancement by adopting advanced and

mature full-process digital O&M production processes.The industry-leading 1.5-generation large-capacity

intelligent slurry-flow production line has achieved over

Cultivating the Green Clean Energy Projects ten major technical breakthroughs including significant

Energy Field Driving increases in single-line annual capacity substantial

Large-Scale Project labor reductions scientific layouts to reduce land use

Implementation The Company has successfully connected 16 projects to the grid with a total installed

capacity of 322.14MW. The expansion of its clean energy power generation business has technical upgrades of equipment and improvements in

yielded significant results providing technical support for the regional green power supply operational efficiency and product qualification rates.and the construction of a low-carbon energy system. These efforts reduce energy waste and lower natural

gas and electricity consumption per unit effectively

supporting the strategic emerging calcium silicate board

industry and assisting in the green and low-carbon

transition. Sinoma EC Green Factory

Looking forward Sinoma EC will continue to advance project reserves and development ◎ Promoting Green Building Materials

centered on the "WHR+" and clean energy fields.In terms of regional layout the Company will leverage "Belt and Road" development The Company continues to promote the green

opportunities to advance overseas green energy projects. We have reserved multiple upgrading of building energy-saving materials Fiber-reinforced calcium silicate board passed China Green Building

WHR power generation projects in markets such as the South Asia and will continue to Material Product Certification and Product Carbon Footprint Certification.promote clean energy project development based on key markets in Central Asia and Africa vigorously developing the calcium sil icate

Expanding the expanding the overseas green energy market space.board business and gradually incorporating

product carbon emission indicators into the

Diversified Market In terms of industry extensionthe Company will focus on energy-saving renovation in

Footprint Building a high-energy-consuming industries such as cement steel and chemicals and extend into

green building material standard system. The

new fields such as new energy materials providing cross-industry energy-saving and Company's calcium silicate board series products

New Pattern of Green environmental protection solutions. We will accelerate the rolling development and model have obtained Chinese Green Building Material

Development replication of clean energy projects like PV providing customers with integrated solutions to Product Certification and Product Carbon Footprint

achieve the large-scale development of the clean energy business. Certification. Sinoma Qianjiang has obtained FSC

Forest Certification to standardize raw material

procurement sources and strengthen sustainable

supply chain management.Providing Green Products

Fiber cement flat board passed China Green Building Material Product Sinoma Qianjiang passed FSC

◎ R&D of Efficient Low-Carbon Thermal Equipment Certification and Product Carbon Footprint Certification. Forest Certification.Wanda Power continues to build a green equipment product system forming a development path featuring waste-heat

recovery boilers waste incinerators and biomass boilers and has earned the title of "Benchmark Enterprise for Core

Equipment in China's Solid Waste Incineration Sector." The Company completed the R&D and design of the first set of 1000 t/d

efficient clean grate waste incineration boiler solutions meeting EU standards and the first set of AOG exhaust gas waste-heat

recovery boilers solutions. It also advanced the development of key technical products such as complete sets of equipment

for compressed air energy storage heat exchange systems providing core equipment support for the green and low-carbon

industry. Major progress was made in high-temperature and high-pressure biomass boilers with the first set of 220 t/h units

successfully operating and achieving industry-leading NOx emission levels. Progress in integrated green hydrogen-ammonia-

methanol technology was marked by the completion of R&D for 150 t/h carbon-source biomass boilers ensuring a stable

carbon source supply and completing key links in clean energy.45 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 46

The Company is advancing the industrialization of key technologies and equipment for low-carbon calcium silicate board. Energy Conservation

Centered on CO2 curing processes the application of bulk industrial solid waste raw materials and the development of

intelligent complete equipment the Company is promote the large-scale application of green building materials.Optimizing industrial layout

In collaboration with Wuhan University of Technology the Company is conducting research on carbon-sequestration fiberboard

technology enhancing CO2 absorption efficiency through innovative carbonization devices to lay a foundation for future Increasing investment in the energy-saving new materials industry and collaborating with research institutes to tackle core

development. technologies driving the industrial transformation of energy-saving processes and equipment.Promoting clean energy

CASE Green Building Materials Serving Infrastructure Construction for Major Public

Replacing fossil fuels with green and clean energy positioning PV and WHR projects and building intelligent energy management

Sporting Events systems to enhance energy self-sufficiency; clean energy consumption in 2025 reached 5.6253 million kWh.The Company provided Grade A fireproof calcium silicate floor panels fireproof boards and decorative floors Deepening digital empowerment

for the venues of the Asian Winter Games covering an area of approximately 85000 m2. The products are free of

asbestos benzene and other harmful substances with fire resistance reaching the highest-Grade A standard. The Building energy O&M and Industrial Internet platforms to enhance the effectiveness of digital energy management.project adopted dry construction techniques allowing materials to be disassembled reorganized and recycled

effectively shortening the construction period reducing resource consumption and supporting the low-carbon Researching energy-saving technologies

construction of major public facilities.Exploring fuel substitution paths within core businesses and promoting integrated multi-energy complementary solutions to drive the

intelligent implementation of energy-saving technologies.Upgrading energy-saving equipment

Focusing on the R&D and iteration of energy-saving equipment advancing the upgrade of special boilers and energy-storage heat

exchange equipment to enhance core competitiveness.Resource Conservation

Advancing solid waste utilization

Promoting the comprehensive utilization of bulk solid waste such as quartz sand tailings; Sinoma Yichang recycles sanding dust to

improve resource recovery rates.Strengthening water management

Practicing Green Operations Improving water-saving management systems and conducting water-saving diagnoses and technical renovations; Sinoma Yichang recycles industrial water for use in the batching process.Optimizing water-saving processes

Management System The Wuhai Power Station carried out water-saving equipment retrofits saving approximately 1200 tons of water annually.◎ Management Sinoma EC strictly follows the laws and regulations of the regions where its operations and

System projects are located. Combining these with its actual production and operation the Company has Simultaneously the Company integrates green and low-carbon principles into daily production and operational management formulated internal management documents such as the "Management and Control Procedures treating resource conservation as a key driver for enhancing governance efficiency and advancing sustainable development.for Energy Conservation and Ecological Environmental Protection" and the "Supervision and Through adopting energy-efficient and environmentally friendly equipment optimizing production processes promoting clean

Management Regulations for Energy Conservation and Ecological Environmental Protection." By energy improving water resource utilization rates and advocating paperless offices the Company systematically advances

refining control requirements across all links the Company has constructed a comprehensive green and low-carbon management while synergistically implementing cost reduction and efficiency enhancement.energy and resource management system.

2025

◎ Management The Company focuses on energy conservation water conservation electricity conservation material

Strategy conservation and comprehensive resource utilization as its core drivers. Through key pathways such as Comprehensive Energy Consumption per Fresh water Total Energy upgrading energy-efficient and environmentally friendly equipment optimizing production processes unit of Calcium silicate board substrate consumption Consumption

and promoting clean energy it is solidly advancing the implementation and effectiveness of green

production models. Deepening its commitment to the circular economy the Company is strengthening

the resource utilization of industrial solid waste increasing the application ratio of carbon-reducing 75.01 kgce/m3 399654.34 Tons 8007.21 tce

substitute materials and continuously enhancing overall resource recycling efficiency.47 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 48

Pollutant Emission and Management ◎ Wastewater Management

The Company strictly implements water-saving and wastewater control measures during 2025

◎ Management System ◎ Exhaust Gas Management its production and operation with zero industrial wastewater discharge. During the

Reporting Period each production unit achieved industrial water recycling through reuse

The Company and its subsidiaries strictly abide by relevant Subsidiaries such as Wanda Power and Sinoma Yichang and standardized treatment ensuring no industrial wastewater was discharged into the Industrial

laws and regulations such as the Atmospheric Pollution have established a dual-control mechanism combining "Self- external environment. wastewater

Prevention and Control Law of the People's Republic of Monitoring + Regular Inspections." This system enables real- dischargeWanda Power discharges treated and qualified domestic sewage into the Guanyinshan

China and the Water Pollution Prevention and Control Law time monitoring of waste gas treatment facility operations Sewage Treatment Plant and recycles industrial water to minimize wastewater discharge.of the People's Republic of China. We have formulated the allowing for the timely identification and rectification 0 TonsSinoma Yichang strictly implements rainwater-sewage separation control measures."Management and Control Procedures for Energy Conservation of potential hazards to eliminate the risk of emission All surface rainwater is discharged directly into the Ju River via dedicated storm sewer

and Ecological Environmental Protection" embedding exceedances during the process. By 2025 Wanda Power networks and outfalls. Domestic sewage and ground wash wastewater undergo

pollution prevention requirements into the entire process of will complete the maintenance and upgrade of its VOCs treatment in integrated underground facilities before being discharged into the Ju River

production and operation. By standardizing the configuration monitoring equipment further optimizing VOCs emission at compliance levels. The discharge concentrations of chemical oxygen demand (COD)

operation and maintenance of environmental protection monitoring and control capabilities to ensure the continuous suspended solids (SS) and other pollutants meet the Grade III standards of the Integrated

facilities we continuously reduce emission risks of exhaust stable and controllable discharge of key pollutants. Wastewater Discharge Standard (GB8978-1996). Industrial wastewater is reclaimed through

gas wastewater and solid waste.The Company sets management targets with exhaust gas a circulating water pool for reuse in the batching system achieving full resource recycling

Under the unified leadership of the Ecological and Environmental compliance rate as the core metric incorporating it into the and zero external discharge of industrial wastewater.Protection Management Committee and the coordination annual Energy Conservation and Environmental Protection

of the Safety and Environmental Protection Department the Responsibility Agreement for assessment and management.Company implements normalized supervision and compliance During the reporting period the Company achieved a 100% ◎ Noise Management

control over exhaust gas wastewater and noise management compliance rate for exhaust gas emissions with no instances The Company explicitly requires all departments and subsidiaries to control and reduce noise pollution adopting targeted measures

across subsidiaries achieving systematic environmental risk of non-compliance or related regulatory issues occurring. such as vibration reduction sound insulation and silencing at noise sources to ensure that boundary noise meets standards and

prevention and continuous improvement. prevents disturbance to the public.In 2025 Wanda Power strengthened noise monitoring in workplaces kept abreast of the level of noise hazards in real time

formulated feasible preventive measures in light of actual conditions and completed the monitoring and disclosure of workplaces

2025 with occupational hazards for the year. Sinoma Yichang focuses on on-site noise control utilizing isolation techniques by placing

high-noise equipment such as sanders in dedicated rooms achieving the dual effect of noise and dust reduction.Industrial Exhaust Gas Volume

4177.09 m3 Waste Management

SO2 Emissions NOx Emissions Industrial Smoke and Dust ◎ Management The Company has formulated the "Solid Waste Management Regulations" clarifying control

System requirements for classification collection storage transportation and disposal. A management 186.29 Kilogram 2706.23 Kilogram 745.55 Kilogram structure with collaborative division of labor and multi-level implementation has been established:

Industrial Dust

Leadership The Chairman is the primary responsible person and the Ecological and Environmental Protection Management Committee acts as the leading body to coordinate corporate environmental work and resolve major issues.

6413.03 LevelKilogram

Safety and Environmental Protection Department: Supervising solid waste pollution prevention and control across

the Company and conducting environmental protection knowledge popularization;

Management Integrated Management Department: Responsible for the full-process management of solid waste in office and

Level living areas;

Central Research Institute: Controlling solid waste from scientific research links and waste electronic products.Each subsidiary: Bearing full-chain solid waste management responsibilities in production and operation links;

Execution

Level Each project department and operating power station: Controlling solid waste from construction and power station

operations to ensure environmental compliance.49 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Pursuing Green to Protect Ecological Beauty 50

◎ Management The Company's solid waste is mainly categorized into two types: non-hazardous and hazardous.Strategies Non-hazardous waste includes construction waste scrap iron and steel and welding slag while

Hazardous Waste

hazardous waste primarily consists of oily wastes such as waste motor oil and paint coating waste.The Company adopts differentiated disposal measures for different types of waste and implements

Identification and

full-process control for hazardous waste in strict accordance with hazardous waste management Install hazardous waste identification signs according to regulations establish

Record Management dedicated management records and complete online reporting.regulations.Non-hazardous Waste

Standardized Classify and store waste according to the Standard for Pollution Control on

Each subsidiary formulate disposal plans and complete filing ensuring timely Hazardous Waste Storage (GB 18597-2001) with storage periods not exceeding Storage Control

Construction waste removal and subsequent utilization or disposal according to regulations. one year.disposal Unauthorized dumping scattering or piling is strictly prohibited.Authorized Entrust disposal to third-party entities holding valid permits strictly implementing

Disposal: the transfer manifest system during transportation.Comprehensive Calcium silicate board enterprises implement comprehensive utilization of certain

resource utilization non-hazardous wastes to achieve resource recovery and reuse.Emergency Filing

Non-hazardous waste is entrusted to qualified entities for removal and disposal. Develop accident response plans and complete filing procedures.Entrusted ManagementPrior to entrustment the contractor's qualifications and capabilities are rigorously

compliant disposal verified and a contract is signed to clearly stipulate environmental protection

control requirements.

2025

The Company regards waste reduction and resource utilization as important goals of environmental management Hazardous Waste Generated/ Non-Hazardous Waste Total Waste Recycled and

systematically advancing waste management planning centered on "Source Reduction Classified Management Resource Disposed Generated Utilized

Recycling and Compliant Disposal." During the Reporting Period the compliant disposal rate of all types of waste reached

100% and the comprehensive utilization rate of general industrial solid waste improved steadily. 15.30 Tons 12034.02 Tons 1918.22 Tons3 Empowerment through Smart Innovation and Win-Win Cooperation

Sinoma EC adheres to technological innovation and digital

transformation as its core driving forces. We continue to

deepen green technology R&D and intelligent applications

collaborating with partners across the upstream and

downstream of the industrial chain to build an open and

win-win green development ecosystem. By continuously

releasing innovative momentum we empower low-carbon

industrial transformation and the Company's high-quality

sustainable development.Key Topics

·Product and Service Quality

·Customer Service

·Supply Chain Management

·R&D and Innovation

·Intellectual Property Rights Protection

·Information Security and Privacy Protection

Aligning with the United Nations Sustainable Development Goals

53 Strengthening Innovation-driven Development

56 Advancing Digital and Intelligent Transformation

58 Strengthening Quality Management

60 Optimizing Customer Service

61 Enhancing Supply Chain Resilience53 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Empowerment through Smart Innovation and Win-Win Cooperation 54

Strengthening Innovation-driven Development The "Discontinuous Residual Steam Recovery System" was successfully applied to a low-density calcium silicate board production

line for the first time. Skid-mounted heat storage devices have achieved mass production forming a standardized and modular

equipment product system.Governance The Company has established a sound system for scientific research management and The "Self-cleaning Coking Multi-stage Pyrolysis Technology and Equipment for Waste Plastics" was recognized as a Major Technical

achievement transformation formulating and implementing the "Management Procedures for Equipment in the First Set (Unit) by the National Energy Administration promoting solid waste resource utilization and the

R&D Projects" the "Regulations for R&D Project Initiation" and the "Measures for R&D Projects development of the low-carbon circular economy industry.and Achievement Transformation Incentives." These regulate the entire process from project

initiation and implementation to acceptance and transformation. The Central Research Institute

as the centralized department for research management is responsible for the overall planning

application supervision acceptance and management of research projects promoting Sinoma EC's "Complete Set of Self-cleaning Coking Multi-stage Continuous Pyrolysis Equipment for

efficient allocation of research resources and the transformation of innovative achievements. CASE Waste Plastics" included in the Fifth Batch of Major Technical Equipment in the First Set (Unit) in the

Energy Field

R&D Platform Industry Driver In 2025 the "Complete Set of Self-cleaning Coking Multi-stage Continuous Pyrolysis Equipment for Waste Plastics" jointly developed

by Sinoma EC and its partners was selected for the fifth batch of the list of Major Technical Equipment in the First Set (Unit) in the

The Company possesses a Nationally In 2025 the Company participated in the energy field. Focusing on the industry pain points of "easy coking and difficulty in large-scale application" in the chemical recycling

Recognized Enterprise Technology revision of 5 national or group standards. and thermal cracking of waste plastics this equipment achieves efficient conversion through self-cleaning multi-stage continuous

Center. pyrolysis and precise temperature control coupled with a low-temperature dechlorination process to effectively reduce the pollution

risks brought by chlorine-containing plastics.Strategy Sinoma EC regards technological innovation as its "top priority project" and deeply integrates it into the Company’s development strategy. The Company has undertaken a number of national key

research and development programs and made breakthroughs in several key core technologies.Comprehensive efforts have been made in managing innovations in business models and

institutional mechanisms safeguarding the development of new quality productive forces with

new types of relations of production. In 2025 the Company had 346 R&D employees with an R&D

investment of RMB 117 million.Strategic Planning for

Building core technological barriers in the fields of new energy and new materials through the dual

Technological Innovation and

drivers of independent R&D and industry-university-research collaboration.Development of Sinoma EC

Sinoma EC's "Innovative Practice of Fourth-Generation Cement Waste Heat Recovery Power

Management of Impacts Risks and Opportunities CASE Generation Technology" selected as an Outstanding Case of Enterprise New Quality Productive Forces Development

Sinoma EC adheres to strengthening the dominant position of technological innovation. Relying on the advantages of our In 2025 the "Innovative Practice of Fourth-Generation Cement Waste Heat Recovery Power Generation Technology" submitted by

national-level Enterprise Technology Center platform we focus on the "Dual Carbon" goals green manufacturing and circular Sinoma EC was successfully selected as one of the "Outstanding Cases of Enterprise New Quality Productive Forces Development"

economy. We have accelerated the pace of tackling key core technologies and the transformation of achievements promoting for 2025 by the China Enterprise Reform and Development Society. This technology achieved systemic breakthroughs around "high

efficiency and energy saving deep integration and intelligent stability." It focuses on key pain points such as the efficiency and

the deep integration of technological and industrial innovation. The enhancement of independent innovation capabilities stability of waste-heat power generation in cement kilns innovatively improving the recovery and utilization capability of medium

supports the Company's international layout and the transformation and upgrading of its business structure. and low-temperature waste heat. This promotes the

reconstruction of energy utilization models for cement

◎ Accelerating the Industrialization of Core Technologies kilns and assists in the energy-saving and carbon-reduction transformation and equipment renewal of

the cement industry.The Company closely follows national strategic deployments for energy saving carbon reduction resource recycling and new

This technological achievement has appeared at

industrialization accelerating the promotion and application of advanced low-carbon technological achievements: major domestic and international exhibitions such as

the 28th Arab-International Cement Conference and

Exhibition and the 3rd Sinoma International Cement

The "Fourth-Generation Cement Waste Heat Recovery Power Generation Technology " was selected for the Recommended Catalogue

Green and Intelligent Development Conference fully

of Energy-Saving and Carbon-Reduction Technologies and Equipment in the National Industrial and Information Technology Field

demonstrating the Company's technical strength and China's Fourth-Generation Cement Waste Heat Recovery Power

(2025 Edition). It has achieved large-scale application in projects such as Chuzhou CUCC Lunan CUCC Jiangshan South Cement

brand influence in the field of industrial energy saving Generation Technology for Cement Kilns debuted at the 28th Arab-

and the Zambia zero-external-electricity industrial park project effectively helping the cement industry reduce consumption and

and carbon reduction. International Cement Conference and Exhibition

emissions while serving green capacity cooperation under the "Belt and Road" Initiative.55 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Empowerment through Smart Innovation and Win-Win Cooperation 56

CASE Innovation in Green Building Material Technology

The calcium silicate board series products and geothermal energy

Sinoma Wuhan has deeply cultivated innovation in green building material technology and equipment upgrading technology appeared at the national "Good House" Science and

with several core achievements reaching industrial breakthroughs: the 1.5 Generation+ technology and equipment Technology Exhibition. As the only geothermal energy development

for calcium silicate boards are progressing steadily. By integrating digital technologies such as intelligent vacuum enterprise in the exhibition area this further enhanced brand influence and

market competitiveness.control and MES the production capacity of low-density boards has increased by 40% with green and intelligent

levels reaching industry-leading standards. The first independently developed 15000-ton press has completed

testing and entered production supporting the large-scale supply of lightweight high-strength and Class A1 Sinoma EC made a stunning appearance in the "Good House" exhibition area with its "Healthy Safe Green and High-quality"

non-combustible green calcium silicate boards. The 2.0 Generation iteration of the integrated board loosening materials

and stacking machine has successfully commenced production significantly reducing product loss and labor

dependency providing key support for the low-carbon transformation and intelligent upgrading of the building

materials industry.◎ Focusing on Intellectual Property Protection

◎ Strengthening Collaborative R&D Capabilities

Sinoma EC strictly complies with laws and regulations such as the Patent Law of the People's Republic of China. We have

The Company adheres to the collaborative innovation of engineering technology and equipment manufacturing. We have improved the intellectual property management system and perfected the whole-process management mechanism for patent

systematically promoted the integrated research of the kiln-end SCR denitrification system and SP boiler successfully solving application transformation and application management and use as well as confidentiality rewards and punishments.industry pain points such as high energy loss and large space occupation. The relevant technology has been applied for the Regulations for patent and infringement response have been formulated to standardize infringement risk identification and

first time in the Yunnan Pu'er Tianheng denitrification project significantly improving the synergistic efficiency of energy saving dispute handling processes. By promoting the centralized procurement of intellectual property agency services the Company

and emission reduction. has strengthened the systematization and standardization of intellectual property management promoted the transformation

and application of innovation achievements and continuously enhanced corporate technological innovation capabilities.The Company has deepened industry-university-research collaborative innovation focusing on exchanges with domestic

universities scientific research institutions and key enterprises. During the reporting period the Company further discussed Focusing on the source of R&D innovation the Company has strengthened patent retrieval and technical intelligence analysis

desalination and industrial water treatment technologies with the Suzhou Research Institute for Environmental Protection of scientifically laying out independent patents and building a protection system for the coordinated development of technological

Tsinghua University. We also promoted the Fourth-Generation Cement Waste Heat Recovery Power Generation Technology at innovation and intellectual property. Relying on the patent search system of the China National Intellectual Property Administration

(CNIPA) we conduct patent searches and analyses in relevant technical fields to systematically identify key information such as patent

the 31st Conference on Atmospheric Environmental Science and Technology & Symposium on Atmospheric Pollution Prevention

protection scope legal status and rights holders. This provides support for R&D decision-making prevents infringement risks from

and Control Technology jointly organized by the Chinese Society for Environmental Sciences and Nankai University. the source and gradually forms a technical protection barrier centered on independent patents.Key Tasks of Subsidiaries in 2025 Metrics and The Company insists on driving green and low-carbon development through technological innovation continuously increasing R&D investment in core technologies and the intensity of

Wanda Power deepened its cooperation with Zhejiang University to develop a 110t/h clean utilization technology for coal Targets achievement transformation to constantly consolidate the technical foundation. During the reporting chemical waste improving combustion efficiency and reducing NOX emissions to promote technological upgrading. It developed

a biomass circulating fluidized bed gasification staged combustion boiler and the first set (unit) of a 220t/h high-temperature period the Company was granted 12 new invention patents and applied for 3 international patents

and high-pressure biomass boiler successfully commenced operation. By collaborating with teams of well-known technical further improving the intellectual property layout in core areas such as energy saving and carbon

experts in the industry the company carried out collaborative innovation around photothermal systems optimizing technical reduction green building materials and clean energy. We participated in the compilation of 5

solutions and building core technological advantages. national and industry standards leading industrial green upgrading with technical standards.Energy Saving Wuhan and Nanjing Tech University jointly applied for the project "Preparation Technology of Radiative Cooling Several key technological achievements were recognized by the industry with a cumulative total of

Materials Based on Solid Waste Resource Utilization" under the fifth batch of "Open Competition" projects in the building more than 10 various science and technology awards received.materials industry which was successfully selected. It also jointly applied for a major scientific and technological research project

in Tianjin with the Shandong Institute of Energy Science.Advancing Digital and Intelligent Transformation

◎ Demonstrating Brand Innovation Strength

During the reporting period the Company won several authoritative recognitions and industry honors

Digital Transformation

with technological innovation strength and brand influence being comprehensively enhanced: Digital and Intelligent Construction Steering Group

In 2025 Sinoma EC took "Empowering Production and Operation Digital Transformation Working Group

Successfully rated as a "Cheetah Successfully "won" for two major national Awarded as one of the "Top 10 Enhancing Management Efficiency and Building a Solid Safety

Enterprise" in Tianjin with innovation scientific and technological research Enterprises in China's Boiler Industry" Defense Line" as its key priorities to solidly advance various tasks Corporate Central Research Digitalization / IT

strength recognized by authorities. projects in the building materials industry with brand strength continuing to of digital transformation. The Company established a Digital Departments Institute Departments of

with innovation momentum continuously manifest. Transformation Steering Group to lead digital construction work Subsidiaries

strengthening.across the entire organization. Management Architecture for Digital Construction57 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Empowerment through Smart Innovation and Win-Win Cooperation 58

◎ Smart Factory Sinoma Chizhou a subsidiary of the Company successfully launched the Company's first smart Information Security Management

factory and built the first digital production MES control platform in the domestic calcium silicate

board industry integrating five major systems: production energy equipment quality and safety & The Company attaches great importance to information security and cybersecurity governance continuously improving the

environmental protection. The factory embeds digital technology into the entire production process collaborative promotion mechanism for informatization construction and security management. We have formulated and

comprehensively collecting and analyzing production data to support the continuous optimization implemented systems such as the "Administrative Measures for Informatization Construction" "Administrative Measures for

of production systems. It also possesses capabilities such as digital twin intelligent control and Cybersecurity" and the "Administrative Measures for Computer Information Security" defining responsibilities and authority

intelligent sorting supported by intelligent equipment including AI visual quality inspection and boundaries. Cybersecurity data protection terminal management and emergency response are embedded into the life-

high-precision intelligent thickness measurement. cycle management of informatization projects consolidating the security foundation for digital transformation.The Company

attaches great importance to the protection of customer information and data privacy strictly follows the requirements of

◎ "AI+" Action The Company accelerated the implementation of "AI+" application scenarios resulting in two relevant laws and regulations standardizes the management of the entire process of customer information collection storage

industry-leading intelligent solutions: First the independently developed "Quality Inspection of use and transmission strengthens data access and permission control actively promotes the construction of a data privacy

Calcium Silicate Boards Based on AI Vision" scheme. As the industry's first AI quality inspection protection management mechanism and effectively ensures information security and compliant use. No customer privacy

solution it has formed a replicable intelligent production paradigm and won first place in the leakage incidents occurred during the reporting period.Group's Digital Excellent Applications and Best Practices. Second Wanda Power built the "Intelligent During the reporting period the Company solidly advanced cybersecurity and informatization work across four dimensions:

Welding System for Boiler Serpentine Tube Attachments Based on Machine Vision" which integrates daily protection major guarantees whole-process control and technical upgrades. Four comprehensive security inspections

intelligent welding software 3D vision and line scanning technologies to achieve welding path and normalized testing were conducted throughout the year achieving "zero accidents" in cybersecurity during major events.planning and automatic identification of workpiece positions. After being put into operation welding Simultaneously we strengthened cybersecurity awareness training for employees and pushed forward special risk remediation

efficiency increased by 20% and the product qualification rate rose to 98%. Currently both scenarios and supply chain security management to continuously improve the prevention capabilities of all staff. By optimizing network

have passed the Group's expert review and have been recommended to the MIIT to represent the architecture upgrading protection systems and improving data backup mechanisms we have continuously enhanced the

Group in the selection of excellent typical corporate AI cases. stability and risk-resistance of our information systems providing solid support for business continuity and digital operations.Strengthening Quality Management

Honors

Governance

Sinoma EC continuously improves its quality management system covering the entire process of product R&D manufacturing

engineering implementation and service delivery. The Company clarifies project quality management requirements in the

Built the industry's first secondary node

Obtained "Integration of Informatization "Regulations on Quality Management of Engineering Projects" embeds quality responsibilities into key business links and

for Industrial Internet Identification

and Industrialization (Grade AA)" and strengthens whole-process quality supervision and continuous improvement to steadily enhance the delivery quality of

Resolution achieving full-chain data

"DCMM Grade III" certificates

interconnection and traceability products and services. As of the end of the reporting period 11 member enterprises of the Company have obtained ISO 9001 or

equivalent external quality management system certifications.Subsidiaries and branches having obtained Quality Management System certification:

Sinoma Energy Conservation Ltd.The "Industrial Internet Platform for Nantong Wanda Boiler Co. Ltd

Energy Saving and Environmental "Research and Application of Calcium Wuhan Building Material Industry Design & Research Institute Co. Ltd

Protection Engineering" project won Silicate Board Quality Inspection Based

on AI Vision" was rated first in the Group's Sinoma Energy Conservation International Investment Co.Ltd.the Innovation Achievement Award for

Digital Excellent Applications and Best Sinoma Energy Conservation (Philippines) Waste Heat Recovery Co. Inc.Intelligent Manufacturing and Digital

Transformation in the Building Materials Practices Sinoma (Beijing) Geothermal Energy Technology Ltd.Industry CNBM New Material Equipment& Technology (Tianjin) Ltd.Sinoma Industrial Energy Storage Tech (Tianjin) Co. Ltd.Sinoma (Yichang) Energy Conservation New Materials Co. Ltd.Sinoma (Qianjiang) Energy Conservation New Materials Co. Ltd. Quality Management System

Successfully selected in conjunction The "2025 Excellent Integration of Sinoma Yujian (Chongqing) Energy Conservation New Material Co Ltd. Certification (including subsidiaries and

with the Group as a pilot unit for Advanced Manufacturing and Modern branches in Tianjin)

the "2025 High-quality Data Set Pilot Services Application Scenario in Tianjin"

Program (Group Consortium)" of the was awarded as one of the "Top Ten Strategy

National Data Bureau Application Scenarios in Tianjin"

Guided by high-quality development Sinoma EC focuses on enhancing management efficiency and operational quality

continuously strengthens strategic leadership and refined management and actively promotes management optimization and

innovative transformation. The Company continuously improves its quality management system and enhances operational

efficiency and risk control capabilities building a solid foundation for overall quality improvement.59 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Empowerment through Smart Innovation and Win-Win Cooperation 60

3.Management of Impacts Risks and Opportunities During the reporting period the "Sinoma Hankun" and "Sinoma Keyan" brand series products of the Company obtained the French A+ certification and the market recognition and reputation of brands such as "Sinoboard" and "Sinopanel" continued to improve. In

the domestic market Wanda Power passed the recertification audit for its "Mechanical Grate Municipal Solid Waste Incineration

Boiler" and continued to maintain its "Jiangsu Excellence" certification; Energy Saving Wuhan actively participated in high-end

◎ Strengthening Adhering to the orientation of strengthening the enterprise through quality the Company industry platforms such as the 2025 Wuhan Medical Fair and the national "Good House" Science and Technology Exhibition

Quality Control continuously improves its quality management system and reinforces whole-process systematically demonstrating the performance advantages and green low-carbon value of calcium silicate board products quality control driving quality management toward systematization standardization and

continuously enhancing market trust and brand credibility. In foreign markets the Malaysia Branch won the "Active Contribution

refinement. Centering on key links such as design procurement manufacturing construction

Award" of the year from the China Enterprises Chamber of Commerce in Malaysia setting a model for Chinese enterprises;

installation and commissioning the Company has built a quality management mechanism

Sinoma Wuhan deeply participated in the 24th Architecture Interior Design & Building Materials Exhibition in Malaysia and

covering the entire project life cycle achieving full-process integration whole-process

appeared at the 25th AstanaBuild in Kazakhstan continuously enhancing its brand image in the international market; NMNC

controllability and full-chain traceability of quality management. Focusing on key equipment

has won authoritative awards in the African building materials industry for four consecutive years and won the Manufacturers

products and new technology application projects the Company strengthens quality

Association of Nigeria Award in 2025 deeply embedding the quality reputation of "Made in China" and the corporate brand

planning reinforces process supervision and strictly controls the quality of key equipment to

image into the African market significantly enhancing international brand competitiveness.continuously improve product stability and engineering contract fulfillment capabilities.Metrics and The Company is committed to the goal of "zero major liability accidents related to product and service safety and quality." To this end we continuously strengthen full-process quality control

Sound Quality Management System Targets and safety risk prevention ensuring reliable delivery secure operation and service traceability.Continuously improving the quality management system; completed the ISO 9001 quality management system During the reporting period the Company did not experience any product recalls nor did any

upgrade audit and ISO 3834 welding system supervision audit; established 22 quality optimization topics to major liability accidents occur regarding product and service safety or quality.promote quality management standardization and continuous improvement.

2025

Promoting Proactive Quality Planning Number of Product Recalls Number of Customer Percentage of Total Products Sold or

Due to Safety Issues Complaints Shipped that Were Recalled for Safety and

Adhere to the "prevention-first" quality philosophy; conducted quality planning for key projects and "Three

New" products; completed 15 key product quality plans including those for SUS Environment and Everbright Health Reasons

Environment moving quality control forward to the design and manufacturing stages. 0 Times 0 0%

Strengthening Whole-Process Quality Control

Build a whole-process quality management system covering design procurement manufacturing

construction installation commissioning and quality assurance; quality issues are classified and managed by Optimizing Customer Service

design manufacturing construction and commissioning with responsible departments clearly identified to

drive closed-loop rectification.Protection Sinoma EC has established management regulations for engineering services product return visits and closed-loop problem handling. These measures implement continuous and effective

Deepening Quality Issue Traceability of Customer standardized control over the entire post-service process ensuring that the engineering

Establish a quarterly quality reporting mechanism to regularly conduct statistical analysis trend judgment and projects undertaken by the Company are successfully put into operation and meet the indicators

responsibility attribution for project quality issues identifying high-frequency risk issues and driving continuous Rights and stipulated in the contracts thereby continuously meeting and exceeding customer expectations.improvement.Interests Through the return visit mechanism the Company timely and accurately grasps customer needs and operational feedback responds rapidly to resolve issues in a closed-loop manner

Strengthening Professional Capacity Building and continuously improves service quality and customer satisfaction further strengthening

communication and synergy with customers.Conduct specialized quality and technical training; deepen the study and application of domestic and

international standards such as GB ASME and CE to continuously enhance the professional level of quality

management and whole-process quality control capabilities. In 2025 two additional employees obtained Customer The Company has formulated and implemented the "Control Procedures for Customer Satisfaction

European Standard DR qualifications and passed on-site audits by international customers further enhancing Surveys" to systematically capture customer needs and feedback continuously improve products and

quality assurance capabilities for overseas projects. Satisfaction services meet and exceed customer expectations and enhance corporate market competitiveness.In 2025 the Company conducted customer satisfaction surveys for engineering projects setting

evaluation dimensions such as "Satisfied" "Relatively Satisfied" "Some Issues Exist" and "Dissatisfied"

regarding on-site service performance. According to the collected statistical results the overall

evaluation from customers for the Company's design consulting on-site services and equipment

◎ Enhancing The Company insists on regarding quality management as the core support for brand supply was primarily "Satisfied" or "Relatively Satisfied." Addressing the issues identified in the

Brand building deeply integrating brand strategy into the main line of business development to surveys the Company conducted root-cause analyses formulated and implemented rectification drive the continuous enhancement of brand influence. measures and established closed-loop management and experience accumulation to continuously

Influence enhance the delivery quality and customer experience of subsequent projects.Quality Management Mechanism61 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Empowerment through Smart Innovation and Win-Win Cooperation 62

◎ Supplier Management The Company adheres to the principles of "Unified Management Dynamic CASE Wanda Power's Service Highly Recognized by Customers Assessment and Promoting the Superior While Eliminating the Inferior." We

implement a supplier admission system and a hierarchical dynamic management

Wanda Power has established an efficient service response mechanism to quickly address customer demands mechanism comprehensively evaluating suppliers across dimensions such as

and dispatched dedicated personnel to ensure service for on-site and overseas projects. Focusing on delivery and qualification and capability performance credit rating and supply-demand

quality control it has strengthened the management of production progress and component completeness while relationships. Relying on the supplier resource management platform we achieve

carrying out regular quality competitions and satisfaction evaluations. information sharing and whole-process management. Based on evaluation

results suppliers are classified into different levels for differentiated management

During the reporting period customer delivery satisfaction increased by 5 percentage points. The Company driving the improvement of supplier capabilities.received 3 silk banners and 5 letters of appreciation was rated as an "Excellent Supplier" by Grandblue

Environment and received high recognition from customers for the delivery of key projects such as Andritz SUN and

YL182 Ghana. ◎ Green Supply Chain The Company incorporates ESG factors into supplier evaluation and management

requirements. We actively promote green procurement practices and advocate

for suppliers to adopt green and simplified packaging solutions. While ensuring

product quality and transportation safety we aim to reduce resource consumption

and environmental impact driving the green transformation of the supply chain.Enhancing Supply Chain Resilience

Supply Chain Sinoma EC and its subsidiaries have established and continuously improved procurement management systems and related institutional documents. We Supply Chain Risk

The Company has established a multi-departmental synergistic and linked

procurement and supply chain compliance control mechanism. We have

Management have also revised and improved system documents including the "Regulations Prevention and strengthened the supervision and inspection of integrity risks in key procurement

System on Supplier Management" and the "Procurement Control Procedures" building a Control stages promoted the standardization and transparency of procurement coordinated and efficiently operating organization and management system for processes and reinforced contract review and performance supervision.procurement and the supply chain. A procurement quality accountability mechanism has been implemented.Through measures such as periodic special inspections and checklist-based

management the Company has solidified regulatory responsibilities at all levels

and continuously enhanced the standardization level of procurement and supply

chain management.4 People-oriented to Build a Better Society Together

The Company insists on integrating a people-centered

orientation and sense of responsibility into ESG governance

and business practices. We continuously focus on

employee development social well-being and sustainable

value creation promoting the sharing of development

achievements with employees and the public and working

with all parties to create a more inclusive harmonious and

sustainable society.Key Topics

·Employee Rights and Compliant Employment

·Employee Training and Development

·Occupational Health and Safety

·Rural Revitalization

·Public Philanthropy

Aligning with the United Nations Sustainable Development Goals

65 Standardizing Employee Employment

66 Empowering Employee Development

68 Ensuring Employee Safety

71 Fulfilling Social Responsibilities65 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report People-oriented to Build a Better Society Together 66

Standardizing Employee Employment 12.28%

7.04%28.38%

Diverse The Company strictly abides by the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China. We have formulated the "Administrative 12.79%

and Equal Measures for Employee Recruitment of Sinoma Energy Conservation Ltd." and adhere to By Age Category

Employment the principles of openness fairness competition and merit-based selection for talent recruitment. We resolutely eliminate discriminatory behavior based on nationality gender

age pregnancy or disability explicitly prohibit the employment of minors and strictly sign 24.12%

labor contracts with employees in accordance with the law to safeguard their legitimate 15.40%

rights and interests.In 2025 the total number of employees was 1813 with a continuously optimized age

structure. The proportions of employees by gender talent type employment type Under 35 Years Old 36–40 Years Old 41-45 Years Old

educational level and age are as follows: 46-50 Years Old 51-54 Years Old 55 Years of Age and Above

Compensation The Company adheres to the people-oriented development philosophy and continuously 19.78% 36.68% improves a compensation and benefits system that is market-competitive and internally equitable.and Benefits We uphold the concept of "Positive Incentive and Performance Priority" improving the employee 80.22% 29.69% compensation management system and optimizing performance appraisal methods.During the

performance management process the Company implements mechanisms such as performance

target communication process tracking and results feedback and establishes appeal channels

for performance results to respond to reasonable employee requests. We have deeply carried

By Gender Category By Talent Category out the standardized management of tenures and contractual arrangements for management members with 100% of management members having signed responsibility statements.The Company attaches great importance to employees’ social security and welfare

33.63% protection and makes full contributions to statutory social insurance and housing provident

funds as well as enterprise annuities for all on-duty employees further enhancing their

long-term security. The Company has established and implemented various allowance and

subsidy policies providing corresponding support to eligible employees and continuously

Female Male Management Professional and Technical enhancing their sense of gain well-being and belonging.Skilled Personnel

Democratic The Company has established a democratic management system with the Employee Representative Congress as the basic form holding regular meetings to provide channels

Communication and platforms for democratic participation safeguarding employees' fundamental rights to

38.76% information participation expression and supervision.

100% Simultaneously the Company maintains smooth communication and feedback channels setting 52.79% up an email address for employee suggestions and opinions. We actively listen to employee

demands and suggestions driving timely feedback and the implementation of improvements.By Employment

By Education

Category Empowering Employee Development

Category

Employee In 2025 integrating mid-to-long-term strategic goals with the current state of human

8.45% resources the Company formulated and implemented the "Mid-to-Long-term Human

Growth Resources Strategic Plan (2025–2030)." Focusing on key directions such as talent introduction

cultivation team building as well as incentives and retention the plan clarifies staged

Full-Time Part-Time goals and key measures. It systematically promotes employee capability building and talent Master Degree and Above Bachelor echelon construction providing strong support for continuous employee growth and the

Junior College and Below implementation of the Company's mid-to-long-term strategies.67 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report People-oriented to Build a Better Society Together 68

The Company has established an employee promotion and career development mechanism oriented toward capability Employee The Company attaches great importance to employee care and the protection of rights and interests. enhancement and performance contribution providing clear and sustainable career paths. We insist on using job qualifications Under the overall promotion of the Trade Union we continuously improve our employee care and

years of service and performance results as the core criteria for promotion. By promoting the principle of "Development Based Care service system.on Performance and Positions Determined by Capability" we ensure the standardization and fairness of the promotion process

During the reporting period the Company organized themed activities such as brisk walking and

and facilitate the continuous optimization of the talent team structure.International Women's Day to enrich employees' cultural and sports lives and improve their physical

The Company adheres to the strategy of strengthening the enterprise through talent and continuously improves its human and mental health. During major festivals such as New Year's Day Spring Festival Labor Day Dragon

resources management system. It enhances employee development empowerment and capability building and is committed Boat Festival Mid-Autumn Festival and National Day the Company continued "Warmth Delivery"

to cultivating a high-quality and professional talent pool. Through systematic training job rotation and skills enhancement activities to effectively convey organizational care.For overseas employees in more than 10 countries

the Company continuously stimulates employees’ growth potential fostering a group of outstanding talents with strong and regions including Malaysia and Zambia the Company organized an online Spring Festival

political integrity and professional expertise.A number of employees in recognition of their outstanding performance and gathering themed "Connecting Hearts Across the Cloud to Celebrate the New Year" extending sincere

excellence were successfully selected into the roster of skilled craftsmen of central state-owned enterprises by the State-owned greetings and festive wishes to overseas staff. In 2025 the Company extended care to 337 employees

Assets Supervision and Administration Commission of the State Council and were honored with titles such as Model Worker of person-times putting organizational care into practical effect.CNBM Group fully demonstrating the solid effectiveness of the Company’s talent development efforts and the leading role of

exemplary individuals.Employee Adhering to the management principle of "Based on the Post Serving the Work and Pursuing Common Development of the Enterprise and Employees" the Company continuously improves its employee training

Training system. We formulated and implemented the "Administrative Measures for Employee Education and

Training of Sinoma Energy Conservation Ltd." providing diversified learning methods including orientation

internal training external training conferences and overseas training ensuring that employee capability

enhancement is aligned with corporate strategic development. In 2025 the Company organized 755

training sessions totaling 157669 hours with 26487 person-times participants."Walking in Nanhu Moving with Vitality" Staff Brisk "International Women's Day"

Walking Activity Flower Arrangement Activity

CASE Special Training on International Engineering Management Enhancement The Company is committed to enhancing employee

happiness and constantly improving care measures and

In April 2025 the Company held a three-day 2025 Special Training on International Engineering Management the office environment. In response to diverse employee

Enhancement attended by all staff of the Engineering Branch and relevant departments of Sinoma EC. The session needs we established the "Caring Mommy's House" to

invited 6 industry experts including professors from the Department of Engineering Management and the Dean of improve the inclusiveness and comfort of the workplace.the International School of Engineering Management at Tianjin University. They conducted lectures and exchanges on The Company pays close attention to employee health

six major topics: international engineering contracts implementation and fiscal risks procurement and supply chain and logistics support. By conducting regular satisfaction

compliance and claims management. This strengthened the risk prevention and contract fulfillment capabilities of surveys for the employee canteen we optimize canteen

overseas projects supporting the high-quality development of the Company's international business under the "Belt an online Spring Festival gathering services and food quality strengthening nutritional balance

and Road" Initiative. themed "Connecting Hearts Across the and health orientation to continuously improve the dining

Cloud to Celebrate the New Year" experience.Ensuring Employee Safety

Governance

The Company continuously improves its work safety governance system. We have formulated and implemented the

"Administrative Measures for Work Safety of Sinoma Energy Conservation Ltd." clarifying the primary responsibility for work

safety to safeguard employee lives and ensure stable corporate operations. The Company has established a safety and

environmental protection management structure with clear powers and responsibilities. The Chairman and the President overall

coordinate and manage safety and environmental protection work. Heads of units at all levels fulfill their duties as the person

primarily responsible for work safety and work safety assessment responsibility statements are signed at each level to drive the

implementation of safety and environmental protection responsibilities.The Company actively encourages member enterprises to carry out Health Safety and Environment (HSE) management system

certifications or introduce third-party institutions for safety management evaluations. In 2025 10 member enterprises passed

the ISO 45001 Occupational Health and Safety Management System certification.69 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report People-oriented to Build a Better Society Together 70

Strategy The Company adheres to the policy of "Safety First Prevention Foremost and Comprehensive ◎ Interested Parties and Overseas ◎ Intelligent SafetyGovernance." We incorporate work safety and occupational health management into the overall

corporate development strategy fully promoting the transformation of the safety governance Safety Management

model toward "pre-prevention in-process control and post-review." The Company extends occupational health and safety The Company is accelerating the intelligent construction

The Company strengthens its awareness of safety "Red Lines" and bottom-line thinking. We management requirements to subcontractors and relevant of safety management deeply integrating digital and

continuously promote the full implementation of safety management requirements across all stakeholders. We have formulated and implemented the information-based means into the safety management

levels of subsidiaries and subcontractors. Through assessment mechanisms special actions "Safety Management Regulations for Subcontractors" system. The intelligent safety systems on the production

and digital means we continuously improve work safety governance efficiency providing a solid to standardize their safety management behavior. The side for six entities—Wanda Power the Energy-saving

guarantee for the high-quality development of the enterprise. Company attaches great importance to safety risks in Electromechanical Branch of Sinoma Wuhan Sinoma

overseas projects strictly implementing management Chizhou Sinoma Yichang Sinoma Qianj iang and

requirements for personnel abroad and regularly conducting Sinoma Yujian—have been fully established achieving a

Management of Impacts Risks and Opportunities video inspections and risk investigations to ensure that risks transformation and upgrade from "Post-Traceability" to "Pre-in overseas business are controllable. Prevention."

◎ Risk Identification and Hazard Investigation

◎ Occupational Health Management ◎ Safety Education and Training

The Company continuously improves the dual prevention mechanism of safety risk hierarchical control and hazard investigation

and rectification. We have formulated and implemented the "Regulations on Hazard Source Identification Risk Assessment and The Company formulated the "Occupational Health and Closely combining the actual production and operation

Hierarchical Control" and the "Administrative Regulations on the Investigation and Rectification of Work Safety Accident Hazards." We Safety Management Control Procedures" to fully implement of each post the Company carries out safety education

have solidly carried out 16 special tasks including "Operation Thunder" "Special Rectification of Safety and Environmental Protection various occupational health tasks. In 2025 the Company and training on a normalized basis. We established a

for Construction Projects" and "Risk Assessment of Overseas Projects" to enhance the Company's safety management level. continuously improved the management mechanism "Safety and Environmental Protection Training Ledger" and

for labor protection equipment and organized special compiled the "Compilation of Typical Work Safety Accident

In reference to industry standards the Company established a "Ledger for Major Accident Hazards" and dynamically revised the list of

investigations for such equipment. The procurement Cases" as warning education materials for all employees.major accident hazards. Safety expert pools were established by specialty to provide on-site professional guidance and assistance

distribution inspection supervision and scrapping of The Company innovatively adopted a combination of

improving the accuracy of frontline hazard investigations. In 2025 the Company identified 2752 hazards of various types through

labor protection equipment are integrated into the safety "online + offline" modes to implement safety training.self-inspection including 15 major hazards with a 100% rectification completion rate effectively preventing and mitigating major

management system to ensure compliance with the During the reporting period a total of 719 training sessions

safety risks.Specifications for the Provision of Personal Protective were conducted covering 22000 person-times. The "Zero

Equipment standards preventing safety accidents caused by Violation" competition was carried out with 143 outstanding

◎ Safety The Company continues to strengthen its emergency management system and standardizes the failure substandard quality or improper use of protective individuals and 26 outstanding organizations selected fully

Emergency the management of emergency plans for work safety accidents and emergencies. We equipment. During the reporting period there were no new playing the role of leading by example and continuously regularly organize emergency drills for fire safety occupational health etc. to enhance

Management cases of occupational disease among employees. creating a production and operation environment where employees' emergency response capabilities. In 2025 the Company organized 135 everyone values safety and follows regulations.emergency drills of various types covering 2216 person-times further enhancing

emergency response and coordinated disposal capabilities.Joint Fire Emergency Drill in the Office Building

Work Safety Month Series Activities

Metrics and The Company focuses on the safety and environmental protection goals of "One Zero Two Fulls Three Reductions and Four Enhancements" to continuously improve occupational

Targets health and safety management. In 2025 the "Work Safety Responsibility System" and

"Administrative Measures for Work Safety Assessment" were revised and released. The

implementation of work safety in units at all levels was assessed to promote the layered

transmission and effective implementation of safety responsibilities. During the reporting

period no production safety liability accidents of serious injury or above occurred and there

Emergency Response Drill for Electric Shock Accidents were no safety penalty incidents.71 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report People-oriented to Build a Better Society Together 72

Occupational Health and Safety ◎ Implementing Diversified Assistance Practices

2025 The Company donated RMB 1 million of “Shanjian Public Welfare” assistance funds to the China Volunteer Service Foundation. These

funds were designated to support industrial development and the improvement of people's livelihoods in designated assistance

Work Safety regions. The local area vigorously developed characteristic industries such as apple cultivation beef cattle breeding and small meat

skewer businesses effectively increasing per capita income and supporting rural revitalization. Through organizing initiatives such as

Work-Related Deaths Work-Related Deaths Work-Related Injury OHS Investment

Rate Rate “Technology Empowerment” industrial seminars industry promotion and investment promotion activities the Company promoted

the high-quality development of cultural tourism and wellness industries as well as calcium-based new materials industries in the

0 Person 0% 0.7% RMB 1 3 Million assisted regions. Through implementing infrastructure support projects such as road construction the Company strengthened the

foundation for industrial development in these regions. The Company invested nearly RMB 200000 in purchasing poverty alleviation

Occupational Health and Safety products to support industrial revitalization. In addition it carried out educational assistance programs to support the cultivation of

rural talent benefiting nearly 400 people and continuously promoting sustainable rural development.Medical Examination Employee Health Number of Occupational Health and

Coverage Record Coverage Rate Safety Training Sessions

100% 100% 719 Times CASE Gathering Corporate Strength to Jointly Paint a New Picture of the Countryside

Actively assumes social responsibility and solidly assists in rural revitalization. Relying on local resources and the industrial

foundation Sinoma Wuhan assisted in the "Development of the Beef Cattle Industry" developing 2156 beef cattle farmers in 2025.It promoted the resource utilization of forage and the upgrading of breeding technology built one cattle artificial insemination and

Actively participating in industry production improvement point and improved over 1200 beef cattle annually through cold-matching achieving an average income increase of

safety exchanges and promoting the external RMB 2000 per beef cattle farmer.sharing of safety management experience. In

2025 the Company published relevant cultural Achievements Sinoma Wuhan established an assistance

research findings: mechanism with the Red Cross Society of

Zhaoyang District to provide precise help to

7 students from families in need. It provided

a monthly subsidy of RMB 500 per student.This compassionate assistance helps

students pursue their studies with peace of

mind and improves the living conditions of

families in difficulty.Visiting Beef Cattle Farmers Visiting Students in Need

Winning the Third Prize for Excellent Papers at the "I Speak About Safety at My Post" was published in

6th Enterprise Safety Culture Symposium for the China Work Safety Magazine

research paper "Research on Countermeasures for

Improving the Safety of Frontline Employees" Actively Giving Back to Society

The Company has always regarded giving back to society and caring for communities as an important component of corporate

sustainable development. We formulated and implemented the management measures for external donations conducting

Fulfilling Social Responsibilities standardized management over the entire process of decision-making implementation and fund use for donation matters

and continuously carrying out diversified public welfare donation activities.Assisting Sinoma EC deeply studies and implements the spirit of General Secretary Xi Jinping's series During the reporting period the Company invested RMB 1.1689 million in public welfare donations to support the development of important speeches on rural revitalization. We deeply integrate the fulfillment of social of social public welfare undertakings and the improvement of people's livelihoods. The Company's overseas member

Rural responsibilities with corporate development strategies regarding the support for rural enterprises actively integrated into the communities where projects are located carrying out public welfare donation activities

centered on community development and public service needs providing support to community organizations and relevant

Revitalization revitalization and the consolidation and expansion of achievements in poverty alleviation as important political tasks and strategic development measures. We incorporate investments government departments and promoting local social development.related to rural revitalization into the annual budget. Through diversified methods such as

financial donations project cooperation and technological empowerment we continuously

increase the allocation of resources to the field of rural revitalization promoting the CASE Philippine Community Public Philanthropy Services Assist in Improving Livelihoods

coordinated development of rural revitalization and the Company's core businesses.During the reporting period the Company continued to deepen targeted assistance and the Solid WHR Company carried out community material donation activities in San Jose City. Based on multiple on-site visits to

work of cadres stationed in villages driving the implementation and effectiveness of assistance understand the actual needs of residents it distributed daily necessities to nearly 100 families in difficulty in Kilingan Village

effectively alleviating local living hardships. Since commencing operations in 2013 the Company has continuously carried out

measures. We dispatched excellent backbones to serve as the Deputy Head of Shitai County medical assistance educational support and other public philanthropy activities more than 40 times in total benefiting over

Anhui Province to carry out village-based assistance and rural revitalization-related work on a 3000 residents and effectively promoting the integrated development of the enterprise and the local community.full-time basis strengthening frontline advancement and the fulfillment of responsibilities.73 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Outlook 74

Outlook

Dreams may seem distant but they can be reached through pursuit; Wishes may seem difficult technological innovation and industrial upgrading.but they can be fulfilled through persistence. The year 2026 marks the commencement of the Optimize overseas operations with a global perspective driving the coordinated expansion of core

"15th Five-Year Plan" a pivotal year for accelerating the company's high-quality development businesses including clean energy engineering and equipment and energy-saving materials.and enhancing efficiency and a critical juncture for deepening our green transformation. With the Deepen engagement in key regions and emerging markets innovate business models and deliver

boldness to forge ahead against the tide and the unwavering perseverance to act with steadfast integrated green and low-carbon solutions. Enhance localized operations by upgrading overseas

commitment the company will anchor its vision as a world-class integrated green energy and entities from project execution to regional operations and value creation achieving full-service

environmental services provider continuing to write new chapters of progress on the new journey end-to-end and comprehensive international development. We will enhance overseas market

of the new era. operation mechanisms continuously improve capabilities in global resource integration market

Adhere to green and low-carbon core businesses as the driving force coordinate the development expansion and brand management and leverage high-level internationalization to support

of multi-energy complementary integrated energy systems deepen energy storage coordination global green transformation and sustainable development.and zero-carbon scenario applications and build integrated comprehensive energy service Bearing "the nation's most fundamental interests" in mind and practicing our "responsibility and

capabilities. Accelerate the cross-industry and cross-sector promotion of core technologies such commitment" The Company will anchor itself to the goal of becoming a world-class green energy

as WHR driving the deep penetration of energy-saving and carbon-reduction technologies into and environmental services provider focusing on strengthening core capabilities and enhancing

high-energy-consuming industries. Advance the transformation of equipment manufacturing core competitiveness. Adhering to the overarching principle of pursuing progress while ensuring

toward high-end intelligent and green production strengthen the synergy between engineering stability and improving quality and efficiency we will ensure a steady and solid start to the

and equipment and expand market opportunities through integrated advantages. Optimize company's 15th Five-Year Plan!

the business structure of energy-saving building materials and new materials accelerate

breakthroughs and industrialization of key technologies such as low-carbon recycling and solid

waste resource utilization and solidify the foundation for high-quality development through75 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Appendix 76

Appendix Indicator Unit 2023 2024 2025

Investment in Production Safety RMB 100 Million 0.12 0.12 0.13

Key Performance Indicators Safety Meetings Held Times 164 16 25

◎ Economic Performance Safety Training Sessions Times 550 659 719

Production

Safety Training Performance Person-Times 13702 16359 22178

Safety

Indicator Unit 2023 2024 2025 Number of Major Safety Accidents Times 0 0 0

Total Assets RMB 100 Million 54.33 51.33 66.50

Number of Emergency Drills Times 64 55 135

Revenue RMB 100 Million 30.67 23.24 37.27

Emergency Drill Performance Person-Times 1279 1555 2216

Total Profit RMB 100 Million 2.03 0.23 0.40

R&D Investment RMB 100 Million 1.65 1.12 1.17

Net Profit RMB 100 Million 1.86 0.14 0.20 Technological

National Innovation Platforms Number 1 1 1

Net Profit Attributable to Shareholders of the Listed Innovation

RMB 100 Million 1.43 0.08 0.14

Company Invention Patents Granted in the Year Number 6 10 12

Taxes Paid RMB 100 Million 1.41 1.04 1.57

Asset-Liability Ratio % 53.28 52.30 63.08

R&D Investment as a Percentage of Revenue % 5.39 4.82 3.13

◎ Environmental Performance

Indicator Unit 2023 2024 2025

◎ Governance Performance Total Environmental Investment RMB 10000 457.93 399.65 315.01

Indicator Unit 2023 2024 2025 Environmental Training Performance Person-Times 1550 1824 1813

Number of Directors Persons 8 8 8

Negative Environmental Incidents Number 0 0 0

Board Meetings Held Times 8 8 9

Corporate Industrial Exhaust Gas

Governance Meetings of Special Committees of the Board Times 12 9 14

10000 Nm3 5910.89 5350.00 4177.09

Volume

Shareholders' Meetings Held Times 7 4 6

SO2 Emissions Kilogram 125.36 4320.68 186.29

Number of Announcements Disclosed Number 60 55 55

Law-based Number of Compliance Training Sessions NOx Emissions Kilogram 3800.47 3613.22 2706.23 Times 6 15 15

Corporate Conducted Emissions Industrial Smoke and

Governance Compliance Training Performance Person-Times 86 255 395 Kilogram 512.68 470.23 745.55

Dust

Number of anti-corruption training sessions

Times 1 1 11

conducted Industrial Dust Kilogram 4237.12 3850.45 6413.03

Anti- Anti-Corruption Training Performance Person-Times 61 53 530

corruption Board Members' Anti-Corruption Training GHG Emissions tCO2e 33876.17 25546.85 21675.24

Person-Times 3 2 30

Performance

Number of Corruption Litigation Cases Number 0 0 0 Note: The company's hazardous waste and general industrial solid waste are entrusted to a third party for disposal.77 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Appendix 78

Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025

Natural Gas Consumption 10000 m3 355.15 293.98 299.36 By Education Category

Gasoline Consumption Tons 19.81 16.07 18.77 Master Degree and Above % 6.00 7.00 8.45

Bachelor % 33.00 34.00 38.76

Diesel Consumption Tons 71.51 67.02 42.76

Junior College and Below % 61.00 59.00 52.79

Resource Use Electricity Consumption 10000 kWh 4104.33 3319.33 3196.96

By Age Category

Total Energy

tce 9951.51 8130.88 8007.21

Consumption Under 35 Years Old % 47.00 47.00 28.38

Total Energy Intensity per

tce/RMB 10000 0.03 0.03 0.02 36–40 Years Old % 18.00 18.00 24.12

RMB 10000 Output Value

41-45 Years Old % 12.00 12.00 15.40

Fresh Water Consumption Tons 410893.70 512441.70 399654.34

46-50 Years Old % 12.00 12.00 12.79

Note: Total energy/water consumption and GHG emissions exclude overseas data.

51-54 Years Old % 9.00 9.00 7.04

55 Years of Age and Above % 2.00 2.00 12.28

Employee Turnover Rates By Gender Age and Region

◎ Social Performance Employment Employee Turnover Rate % 2.24 2.21 8.77

By Gender Category

Indicator Unit 2023 2024 2025 Male % 1.94 1.83 6.34

Total Employees Person 1909 1905 1813 Female % 0.30 0.38 2.43

Labor Contract Signing Rate % 100 100 100 By Age Category

Social Insurance Coverage % 100 100 100 Under 35 Years Old % 1.50 1.20 3.97

Percentage of Female Managers % 22.80 19.10 13.62

36-40 Years Old % 0.24 0.30 1.60

Average Paid Annual Leave Days Day 5 5 5

41-45 Years Old % 0.50 0.71 1.32

New Employees Person 134 131 127

46-50 Years Old % 0 0 0.99

Number of Internal Job Applicants Person 19 12 7

Employee Distribution By Gender Talent Category Employment Type Education Level and Age 51-54 Years Old % 0 0 0.33

By Gender Category 55Years of Age and Above % 0 0 0.55

Employment

Male % 79.80 80.00 80.22 By Region Category

Female % 20.20 20.00 19.78 Mainland China % 2.24 2.21 8.77

By Talent Category

Medical Examination Coverage % 100 100 100

Management % 26.20 26.00 29.69

OHS Investment RMB 10000 439.50 398.10 295.27

Professional and Technical % 33.20 35.00 33.63

Employee Health Record Coverage Rate % 100 100 100

Skilled Personnel % 40.60 39.00 36.68 Occupational

Number of Occupational Health and Safety

By Employment Category Health and Times 550 659 719Training Sessions

Safety

Full-Time % 100 100 100 Work-Related Deaths Person 0 0 0

Part-Time % 0 0 0 Work-Related Deaths Rate % 0 0 0

Work-Related Injury Rate % - - 0.779 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Appendix 80

Index Table The Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—

Sustainability Report (Trial) by the Shanghai Exchange

Indicator Unit 2023 2024 2025 Dimension No. Topic Location

Number of Employee Training Sessions Times - - 755 1 Climate Change Tackling Climate Change Tackling

Person-

Employee Training Performance 11328 13255 26478

Times 2 Pollutant Discharge Practicing Green Operations

Employee Training Hours Hour - - 157669

3 Waste Disposal Practicing Green Operations

Development Training Proportion by Employee Category

And Training 4 Ecosystem and Biodiversity Protection Not Applicable

Corporate Executives % 2.5 2.9 2.21

Environment

Management Personnel % 40.00 43.00 15.63 5 Environmental Compliance Management Strict Environmental Compliance

Professional Technicians % 41.80 42.00 45.56

6 Energy Usage Practicing Green Operations

Skilled Personnel % 14.00 10.60 33.98

7 Use of Water Resource Practicing Green Operations

Number of Suppliers Number 1556 1637 1824

Number of Suppliers Reviewed During the 8 Circular Economy Practicing Green Operations

Reporting Period Number 228 81 121

Supplier Percentage of Suppliers/Subcontractors 9 Rural Revitalization Fulfilling Social Responsibilities

Management Certified in Quality Environmental

and Occupational Health and Safety % 83 86 89 Fulfilling Social Responsibilities;

Management Systems 10 Contributions to the Society Promoting Low-Carbon Transformation

Number of Supplier Social Responsibility

Training Sessions Times 0 0 0 Strengthening Innovation-driven 11 Innovation-driven

Number of Product Recalls Due to Safety Development

Issues Times 0 0 0

Number of Safety-Related Defect 12 Ethics of Science and Technology Not Applicable

Complaints Number 0 0 0

Customer Privacy Breach Incident Number 0 0 0 Society 13 Supply Chain Security Enhancing Supply Chain Resilience

Product Liability

Percentage of Total Products Sold or Equal Treatment to Small and Medium-sized No relevant incidents have occurred at 14

Shipped that Were Recalled for Safety and % 0 0 0 Enterprises the company.Health Reasons Strengthening Quality Management;

15 Safety and Quality of Products and Services

Number of Customer Complaints Number 0 0 0 Optimizing Customer Service

Data Security and Customer Privacy Advancing Digital and Intelligent

Total Donations 16

(Including Rural Revitalization Assistance Protection Transformation

Funds and Monetary Value of Donated RMB 10000 101.00 102.15 116.89 Standardizing Employee Employment;

Supplies) 17 Employees Empowering Employee Development;

Ensuring Employee Safety

Number of Cadres Selected for Assistance

and Temporary Assignments Person 1 1 1 18 Due Diligence Due Diligence

Community

Number of Assistance Projects

Investment Implemented Number 1 1 1 19 Communication with Stakeholders Stakeholder Communication

RMB 100 Sustainability-Related Total Overseas Assets Million 2.68 2.24 14.32 Governance

20 Anti-commercial Bribery and Anti-corruption Upholding Business Ethics

Number of Overseas Employees Person 241 256 285

Localization Rate of Employees % 12.62 13.23 15.72 21 Anti-unfair Competition Upholding Business Ethics81 Sinoma Energy Conservation Ltd. 2025 Sustainability (ESG) Report Appendix 82

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