Value creation Governance Low-carbon Humane orientation Index

1Dreams and wishes may be far

but they can be fulfilled with

dedicated pursuit.CONTENTS Governance 30 Low-carbon 46 Humane orientation 60

Policy commitment 32 Climate change 48 Employees' rights and benefits 62

Introduction 04 Sustainability management 34 Environmental compliance management 51 Talent cultivation 65

Stakeholder engagement 36 Energy management 54 Occupational health 67

Report highlights 04 Corporate governance 38 Water management 56

Development milestones 05 Risk management 41 Pollutant emission and waste management 58

Business ethics 42 Biodiversity 59

Chairman's Message 06

About us 08

Group overview 08

Honors and certifications 10

External engagement 11

Progress on the United Nations Sustainable 12

Development Goals (UN SDGs)

Contributions to society 14

Value creation 16

Economic performance 18

Sector contributions 19

Product innovation 20

Quality service 26

Sustainable supply chain 28

Index 70

GRI content index 70

IFRS industry-based index 76

Verification statement 77

Report profile 80HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Introduction Development HY Solar and Munich RE entered into a strategic cooperation agreement

milestones A signing ceremony was held at SNEC 2024 in Shanghai for the strategic

Report highlights cooperation relationship between HONGYUAN Green Energy Co. Ltd. ("HY Solar the company us") and Munich Reinsurance Company ("Munich Re").Munich RE will provide a 15-year product & material warranty and a 25/30-

year power linear warranty service for the PV modules of HY Solar. This

Environment

HY Solar (Wuxi) honored serves as a full third-party assurance to downstream clients in the value

as a zero-carbon factory chain who use our products on a large scale and represents Munich RE's full Environmental protection investment accreditation of HY Solar 's constantly excellent technology and outstanding

76.9356 100 During the reporting period HY quality. million yuan % compliance with air pollutant emission standards Solar Co. Ltd. was awarded the

certificate as a Type I 5-star "zero-

carbon factory" issued by the

36 energy conservation optimization projects 100% compliance with wastewater discharge standards China Quality Certification Center

marking the first zero-carbon

factory of HY Solar. The company

16 was awarded green certifications water conservation & recycling projects Zero environmental violations for its module factories including

the Certificate of Verified Carbon

Unit (VCU) Retirement and the

International Renewable Energy

Certificate (I-REC).Society

100 coverage of collective contracts for employees 252 new patents added this year

Sustainability performance

100% employee participation in performance assessment Zero incidents of discrimination harassment

forced labor or child labor In August 2023 the company

released to the public its

100 first 2022 Environmental % coverage of employee skills training Training all employees and staff: approximately Social and Governance (ESG)

Report. As of April 2025 we

160000 hours have consecutively released

3 ESG reports. During the

reporting period there were

no restatements of information

arising from disclosure errors.Economy & governance

In May 2024 the

company was HY Solar

Revenue: 730236.40 (ten thousand yuan) Zero cases of fraud bribery anti-misconduct consecutively Sector classification in GICS Level 3: Machinery manufacturing The company's sector ranking in

anti-monopoly or money laundering rated BBB by GICS Level 3 21/453

the Wind ESG Data updated on: October 31 2024

Rating and

Zero cases of confirmed information security incidents major information security incidents Machinery ranked 21/567 In October 2024 the company Zero

in the sector was rated A by Chindices ESG

Ranking in

by the overall rating and ranked 10/453 in machinery sector

by the overall score. the sector by the corporate

100 employee coverage of integrity practice training 25 internal audit projects completed score governance. 21/567

04 05HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Chairman's Message

Looking back to 2024 despite increasing global economic turbulence and geopolitical conflicts achieving

carbon neutrality remains a global consensus and an action goal. As a photovoltaic full-industry-chain integrated

enterprise with over two decades of expertise in the new energy sector HY SOLAR has consistently adhered to

the vision of "Cleaner Energy Better World" in its development philosophy guided by the strategic guideline of

"Innovation in Technology Intelligence in Service". We promote sustainable development through green energy

always at the forefront of green energy transition while striving to set a benchmark for high-quality sustainable

development.We uphold technology as the "primary energy" forging the core engine for high-quality development. HY

SOLAR focuses on the innovation and breakthrough of core technologies. In 2024 the company continued to

introduce top-tier industry talents and established a large-scale R&D base of 5000 square meters with CNAS

standard to continuously enrich its product matrix with cutting-edge innovations. In collaboration with leading

academic institutions such as Zhejiang University and Lanzhou University the company has promoted cooperative

R&D and talent cultivation accelerating the pace of innovation in the PV industry and achieving substantial results.The company has further strengthened its commitment to green and low-carbon manufacturing. In 2024 it

invested nearly 80 million yuan in environmental protection enhancing resource utilization efficiency and reducing

greenhouse gas emissions through measures such as energy conservation and emission reduction resource

recycling renewable energy utilization and product design optimization. Notably subsidiary HY SOLAR（Wuxi） was

awarded the "Five-Star Zero-Carbon Factory" certificate while Hongyuan New Material was recognized as a "National

Green Supply Chain Management Enterprise". These achievements underscore our dedication to delivering green

and low-carbon PV products and services strengthening green supply chain management to build a sustainable

ecological environment.ESG has long become an essential requirement for HY SOLAR serving as a powerful driver to build a value

community and a core competitive edge for the future. For years we have engaged in diversified cooperation with

upstream and downstream partners in the industrial chain strengthened environmental and social responsibility

management in the supply chain and continuously fostered a more inclusive and friendly community of shared value

and ecological sustainability jointly constructing a green and sustainable value chain. In 2025 we will remain true to

our original aspirations taking innovation as the foundation to pursue excellence in quality and cost efficiency. We

will elevate our ESG management capabilities accelerate the realization of ESG's potential value and drive the high-

quality advancement of green energy to empower China's PV industry to energize the world with green power and

achieve even greater milestones.Chairman of HY Solar

Yang Jianliang

06 07HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

About us

Group overview GRI 2-1 | GRI 2-6

HONGYUAN Green Energy Co. Ltd. established

in 2002 (formerly known as "Shangji CNC") is

a photovoltaic full-industry-chain product and

service provider focusing on innovation and

application in the new energy sector. It was

listed on the Shanghai Stock Exchange in 2018

with the stock code 603185. As a representative

of private new energy enterprises the company

has developed into a rare full-industry-chain

ecological enterprise in the new energy sector

after more than two decades of innovation and

development.Currently the company has built several core

R&D and manufacturing bases in Qingshan

and Guyang of Inner Mongolia Xuzhou

Wuxi and Jiangyin of Jiangsu and Chuzhou

of Anhui completing its layout of 150000

tons of industrial silicon 100000 tons of

polycrystalline silicon 75GW of silicon wafers

45GW of batteries and 35GW of modules. The

company has been ranked as one of the "

Manufacturing Company 500 China" "Global

Top 500 New Energy Enterprises" and "Top 100

Private Energy Enterprises in China" for many

years.Looking ahead HY Solar will remain committed

to deepening its strategy of "Offering Intelligent

Service with HONGYUAN technology" under

the carbon-peaking and carbon-neutrality

goals collaborating with its partners across

various fields to develop the global new energy

market and build a technological green and

intelligent new HONGYUAN with the vision of

"making energy cleaner and making world

better" and the win-win business philosophy

that is oriented to the market clients centered

and linking resources.

08 09HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Honors and certifications

HY Solar Hongyuan Energy (Baotou)

"Outstanding "Outstanding

2023 Jiangsu High- PVBL 2024 "Top 100 PVBL 2024 "Top 20 Contributions to Production

Contributions to Fixed

Baotou Stronghold Asset Investment Award"

Quality Development Global PV Brands" Silicon Wafer Brands" Value Award" for 2024 in Party Branch of 2023 for 2025 in Baotou Jinshan

Benchmark Enterprise Baotou Jinshan Economic

Development Zone Economic Development

Zone

2024 Global Top 500 2024 Good PV Most Influential PV

New Energy Enterprises - Top 10 PV Cell Brands Module Enterprise of HY SOLAR (Wuxi)

2024

5-Star Certificate for the CQC 5-Star After-market

Zero-Carbon Factory Services Certificate

Hongyuan New Material (Baotou)

Recognized by the

Inner Mongolia's Top Inner Mongolia's Top 50 enterprise technology *A selection of the awards presented in 2024

100 Private Enterprises Private Manufacturing center at the autonomous

Enterprises region level

ISO 14001 ISO 45001 ISO 50001 ISO 9001

Industrial design center "Green Supply Chain HY Solar

of the autonomous Enterprise" of national

region green manufacturing Hongyuan Energy (Baotou)

Hongyuan New Material (Baotou)

HY Solar (Wuxi)

Hongyuan New Material (Xuzhou)

Hongyuan New Material (Xuzhou)

Jiangsu Province private Intellectual property

High-tech enterprise

science and technology marking and filing External engagement GRI 2-28

enterprise

China Photovoltaic Industry China General Machinery Wuxi Enterprise Federation

Jiangsu Province four- Association Industry Association

star cloud enterprise

Wuxi New Energy Industry Wuxi Xuelang Chamber of PV CYCLE

Association Commerce

10 11HY Solar Co. Ltd. Introduction Introduction 关Ab于ou我t u们s Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Progress on the United Nations Sustainable Development

Goals (UN SDGs)

As the world economy confronts multiple risks it has become a global initiative to gather strength to address common

challenges. Driven by the UN SDGs HY Solar remains committed to implementing meaningful practices.Participate in community donations Strictly implement the occupational Build distributed photovoltaic Provide reliable efficient and Insist on equal pay for equal

to help the underprivileged health and safety measures on plant rooftop eco-friendly solar products work

Generate employment File health records

opportunities with fair wage

practices Organize the Safety Month event

Conduct large-scale employee Manage hiring and promotions Manage and control wastewater Join PV CYCLE to build a PV Conduct climate-related scenario Conduct regular integrity training and

training on the principle of equality discharges from production recycling system analyses and product carbon promotion

processes footprint certification

Strengthen supply chain Formulate a Supplier Code of Conduct

Explore measures for water responsibility management Create a "zero-carbon factory"

resource treatment and recycling Establish a risk management

mechanism

12 13HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Contributions to society GRI 203 | GRI 413

Educational Attaching great importance to Hongyuan Energy (Baotou) donated education development HY Solar has sportswear and school supplies to

been dedicated to helping students underprivileged students in the poverty-

United in its commitment to charity HY Solar took on its corporate social responsibility and commitment through concrete actions. support succeed and paying close attention stricken community while fulfilling six

The company organized various volunteer activities agricultural assistance activities charitable donations employee condolences to examination dynamics escorting students' wishes by completing the

etc. with a cumulative amount of about RMB510000 showcasing its love and dedication to society. HY Solar supported the children's growth. We donated community's "order" mission.education for youth RMB300000 to support the charity of

development. Binhu District Wuxi City which was

directed to the Hongshawan Excellent

Education Fund and assisted in the

Community We participated in community building through public welfare donations to constantly

creation of two schools and community

strengthen community assistance support education and optimize public services adding activities enhancing educational

donation vitality to the community while improving residents' quality of life. progress and fostering community development and prosperity through

practical and effective actions.HY Solar wholeheartedly

dedicated to community

development

Condolence and public welfare activities in Condolence for retired party members

Spring Festival

During the college entrance

examination in the same year

Hongyuan New Material (Baotou) set

up a charity service kiosk distributing

1000 bottles of mineral water and

500 fans to help the examinees.

Condolence and public welfare activities in Spring Festival Condolence and public welfare activities in Mid-Autumn

Festival

We have secured great achievement in volunteer services demonstrating our strong We engaged in village-enterprise cooperation

concern for social responsibility with practical actions and various volunteer activities. Volunteer and paved the way for prosperity with the Village-

services community. HY Solar (Wuxi) participated in enterprise

the "Village and Enterprise Going Forward

Together for Common Wealth through cooperation

HY Solar volunteers Supply-Sale Cooperation" initiative and

devoted love received the title of "Endorser of Common

Wealth". With its care for the community Join hands with

Hongyuan New Material (Baotou) purchased the community for

local slow-selling watermelons to strengthen prosperity

community ties and contribute to shared

prosperity goals. Hongyuan Energy

(Baotou) has signed a Co-Location and Co-

Construction Agreement with the poverty-

Workers tree-planting activities Volunteer snow Neat arrangement stricken community and attended the joint

removal in the of bicycles for a meetings of the co-construction units on a

community beautiful city quarterly basis.

14 15HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Value

creation

* Economic performance P18

* Sector contributions P19

* Product innovation P20

* Quality service P26

* Sustainable supply chain P28

R&D input: RMB 339.35 million

Number of new patents added during the year: 252

Renewable energy use: 6318.56 MJ

Percentage of new suppliers evaluated with

questionnaires containing environmental and social indicators:100 %

Number of suppliers identified as subject to

significant negative environmental/social impacts: 0

16 17HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Economic performance GRI 201 | GRI 202 | GRI 203 | GRI 415 | IFRS RR-ST-000.A | IFRS RR-ST-000.B | IFRS RR-ST-000.C Sector contributions

In 2024 HY Solar made remarkable

Economic performance achievements in promoting the

development of the renewable energy

Item Indicator Unit 2024 2023 2022 sector. The company has delivered multiple

Direct economic value high-quality projects with particularly

generated Revenue Ten thousand yuan 730236.40 1185887.62 2190943.66 impressive test data demonstrating its

Operating costs Ten thousand yuan 878480.44 1135225.42 1871574.54 excellent capacity in enhancing PV module

Economic value assigned efficiency. Actual testing data shows that

Employee salary and benefits Ten thousand yuan 12823.12 20089.49 11853.57 N-type modules generate 6.15% more

electricity than conventional modules.Market performance

Indicator 2024 2023 2022 Guangdong Maoming Agri-Photovoltaic Complementary Project

Ratio of starting salary of regular employees to the minimum salary 1 : 1 1 : 1 1 : 1

Ratio of starting salary of male employees to the minimum salary in Wuxi City 1 : 1 1 : 1 1 : 1

Ratio of starting salary of female employees to the minimum salary in Wuxi City 1 : 1 1 : 1 1 : 1

Indirect economic impact

Indicator Unit 2024 2023 2022 InterSolar South America 2024 Brazil UAE World Future Energy Show (WFES)

Donations and public welfare programs Ten thousand yuan 51.32 195.87 563.06

Rural revitalization Ten thousand yuan 0 6.50 7.90

Belgium InterSolution 2024 Open Energies 2024 France Spain GENERA 2024

InterSolar Europe 2024 Munich Germany SNEC 17th (2024) International Photovoltaic Power Generation and Smart Energy

Exhibition & Conference

18 19HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Product innovation GRI 301 Product design

Shaping the future: Developing the blueprint for a product In the development of products we take light weight design as an important consideration while holding toxic and hazardous substances under strict management and control. We incorporate RoHS and other standards into our hazardous substance

innovation system management process and resolutely eliminate materials containing toxic and hazardous elements to minimize the potential

harm of our products to the environment. In addition the company is committed to producing low-carbon and high-efficiency PV

products through analysis and management of the carbon emission during the entire product life cycle and with R&D and design as

The company is committed to promoting the development and application of green energy through R&D and innovation of the core.advanced solar technology. We firmly believe that technological innovation is the key driver of corporate sustainability. Through

continuous technological innovation we aim to enhance the conversion efficiency and reliability reduce costs and expand market

share of PV products becoming a world-leading provider of solar energy solutions.R&D team Infrastructure R&D

building input

Constantly introduce and Invest in and build the HY Solar (Wuxi) Annually invest a certain

cultivate high-quality R&D R&D and Testing Center equipped percentage of revenue in R&D

talents to set up a professional with internationally advanced to ensure that our technology

R&D team. testing equipment and a laboratory maintains its leading position.management system.RoHS certificate

The company has a total of R&D team: R&D input: RMB

594 patents at present 635 persons 339.35 million

Ratio of R&D personnel to Conversion efficiency in

with the total employees: serial production:

25210%26.90%

patents added during the year

Product lifecycle management

As an important player in the new energy field HY Solar understands the significance of full product lifecycle management to

sustainable development. The company is committed to reducing the environmental carbon footprint and negative impacts of

our products at every stage including design production use and disposal promoting green transformation and sustainable Carbon footprint certificates for modules

development across the sector.

20 21HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Material selection

Case HY Solar (Wuxi) 2MWH PV Rooftop Project

Regarding material selection we prioritize local materials to reduce carbon emissions during transportation. In addition we select

materials that can be recycled and recovered at the end of solar PV products and strive to increase the proportion of recyclable raw HY Solar (Wuxi)'s Class D warehouse is covered by a color steel tile roof structure

materials in our products for a better utilization rate of resources. with a rooftop area of 12800 square

meters. 182 bifacial modules are used

and paved as fixtures. It generates a total

Indicator Unit 2024 2023 2022 electricity of 2MWH is connected to the

Total weight of materials used to produce and package the grid at a low voltage and can independently

organization's main products and services (non-renewable 6466.10 3996 3847 generate electricity for its consumption. It

materials) generates electricity of about 200000kwh

Ton monthly on average in summer mode from

Total weight of materials used to produce and package

the organization's main products and services (renewable 25630.13 1682 3114 July to October and about 100000kwh

materials) monthly on average in winter mode

from November to June making annual

Percentage of recycled feedstock used to manufacture the

organization's main products and services* % 46 48 50 estimated power generation about 1.6

million kwh equivalent to a reduction of

Note: In 2024 the recycled feedstock used to manufacture our main products and services was packaging materials and the values about 929.60tCO2 emissions. 2MWH PV rooftop

of which were denominated as the average usage percentage by HY Solar Hongyuan Energy (Baotou) Hongyuan New Material

(Baotou) HY SOLAR (Wuxi) and Hongyuan New Material (Xuzhou).

Material packaging

Clean manufacturing

The company constantly explores green packaging solutions with a priority on the use of recyclable biodegradable and lighter

packaging materials. We set up a packaging material recycling system developing a recycling program for recyclable packaging

We improve resource utilization efficiency and reduce greenhouse gas (GHG) In 2024 the company used materials and encouraging relevant parties to participate in packaging material recycling. During the reporting period the company

emissions through such measures as energy management emission reduction

6318557.81 recycled and used 3290.48 tons of packaging materials. resource recycling & renewable energy utilization zero-carbon factory construction GJ

supply chain management and product design optimization reducing the negative

impacts of production and operations on the environment. The company used of renewable energy Case HY Solar (Wuxi) Battery Sheet Packaging Materials Recycling Project

6318557.81 GJ of renewable energy in 2024

In 2024 HY Solar (Wuxi) formulated a

recycling program for wooden pallets

EPE liners & covers cardboard boxes

Rooftop PV and new energy

applications long-paper corner protectors inner

packaging boxes and hollow sheets.Hongyuan New Material (Baotou) Production-line parallel recycling is implemented in accordance with the

practices the concept of green established recycling standards which

development optimizes its specify the unpacking operation mode

energy structure and puts and the number of each recycled pallet

its independently-built 6MW and the warehouse is divided into

distributed PV power station into separate bins to place recycled materials.operation. With an annual power Regarding transportation the battery

generation of approximately 5.6 side and the module side share logistics

million kWh the power plant vehicle information. The warehouse

meets the company's electricity on the module side prepares goods

demand and reduces CO2eq according to the vehicle information

emissions by approximately and dispatches fully-loaded vehicles whenever possible. Packaging materials

3193.68 tons. are continuously transported back to the

battery side and 13 batches have been

transported back to Xuzhou totaling 340

pallets.

2223

Production WarehouseHY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Green logistics Develop new products with universities

Regarding logistics and transportation we dispatch vehicles reasonably based on the daily shipment volume while integrating We collaborate with multiple universities to develop new technologies and products accelerate the transformation and application

orders and optimizing transport plans to ensure that each shipment is made with a full load and at full tonnage. In addition of technology achievements and enhance our competitive strength.we optimize the layout of overseas warehouses and change land transportation to water transportation based on the overseas

distribution points to reduce carbon emissions and energy consumption during material transportation; We adopt a Warehouse

Management System (WMS) to improve the speed and accuracy of goods processing in the warehouse in automated and intelligent

ways enhancing logistics efficiency reducing operation costs and reducing carbon emissions. Industry-academia-research cases

Application for Application for Application for Development in

cooperation with cooperation with cooperation with cooperation with Nanjing

Disposal and recycling at the product end Zhejiang University: Lanzhou University: Lanzhou University: Institute of Technology:

Unveiling and Key R&D and Achievement Application for N-type TOPCon High-

Commanding Project - Transformation Program Technology Program Efficiency Crystalline Silicon

The company keeps collecting and recycling raw materials of PV modules for reuse and builds a closed loop of green ecology R&D of Large-Diameter (Science and Technology Project - Key Technology Solar Cell Project with

through the establishment of a perfect recycling system and continuous exploration and adoption of advanced recycling ( ≥ 12") Semiconductors Supporting Ecological R&D Project of New innovative technology

technology. We have formulated the "Management Specifications on Use of P-Type Recycling Material" "Management Monocrystalline Silicon Protection and High Generation of High covering boron diffusion Without Magnetic Field Quality Development Efficiency N-type Low three-step to source

Specifications on Use of N-Type Recycling Material" and "Recycling Standards of Seed Crystals" to standardize the recycling of the Yellow River Oxygen Monocrystalline thick-film alumina oxide

management of the recycling material generated during production reducing usage risk and lowering costs. Basin) Project - R&D Silicon passivation and new slurry

of Key Technology for system the cells have been

New Generation of supplied to multiple front-

Highly Durable Graphite line clients.Case Raw Material Utilization Enhancements Project Electrode Columns1

In April 2024 Hongyuan New Material (Baotou) reused the outsourced silicon material by lengthening the silicon at the single- The project is still pending approval

crystal furnace table through the new silicon material technology application scheme and the optimized cleaning process.Subsequently we began reusing four takeout raw materials: silicon tube waste unusable material scrap material and falling silicon

material which are recycled as soon as they meet qualification standards and are continuously recycled with a stable process to

reduce the total amount of takeout silicon material. The raw material utilization rate was enhanced by 0.26% after the reuse of the Leading change to tackle technology

takeout silicon in this manner simultaneously reducing manufacturing costs and improving overall material utilization.innovation challenges

In the face of ever-changing technology innovation the company has adopted a

series of measures to ensure it maintains the leading position in the fierce market

competition:

Introducing international Digital management: LIMS Large-scale R&D base: The

Silicon tube waste Unusable material Scrap material Falling silicon material standards: Our R&D and Testing laboratory management system is laboratory covers 5000 square

Center is established according to adopted where all the information meters and is equipped with 28

ISO 17025 standards and operates of instruments equipment types of equipment totaling 58

according to the requirements testing tasks personnel and sets.of the CNAS certification system testing process are incorporated

ensuring the accuracy and for digital management to

reliability of testing results. improve the testing efficiency and

project management level.

24 25HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Client service

Quality service GRI 416 | GRI 417 | GRI 418 | IFRS RR-ST-410a.1

The company enhances client satisfaction by improving its service process and response mechanism. We conduct the factory audit

product inspection and handle client complaints in accordance with the "Management Procedures for Client Services" invite

clients to evaluate their satisfaction with product quality service quality price and delivery quality have in-depth exchanges with

Quality construction our clients to identify potential problems and adopt client suggestions to enhance our overall services and to shape our brand image. Research results show that multiple service quality indicators have received full scores from many clients.With the updating of technology and products HY Solar places greater emphasis on

delivery quality and client satisfaction always taking product quality as the core of Complaint handling Failure analysis Remediation and prevention

delivery and client satisfaction as the starting point of service hoping for a deeper

more pragmatic detailed and thorough quality management and client relationship

management. We establish a whole-life cycle closed loop quality management Aim to contact clients within 24 Adopt an 8D Analysis approach to Perform permanent improvement

mechanism from the supply chain management to after-market services proposing hours for initial feedback and determine and analyze and set up with client accreditation and

and tracking the quality objectives and supervising the quality responsibility of each conduct prior consultation on a cross-department special task constantly track product quality

production and service process. resolution deadlines and non- force to analyze investigate and management & control to prevent

remedial preventive measures deal with the case recurrence

HY Solar observes the local laws and regulations on product quality promotes the

construction of internal quality management system according to the international

quality management standards formulates and executes the quality control plan

reduces the deviation of the product process and improves the success rate of the During the reporting period HY Solar

product quality design through the tools including Design Failure Modes and Effects Results of client satisfaction (Wuxi) continued to receive external

Analysis (DFMEA) and Process Failure Modes and Effects Analysis (PFMEA) to ensure recognition for its comprehensive after-

that the product quality level meets the design planning and client expectations. market services system and excellent

During the reporting period the production base has passed ISO 9001 Management service standards passed the national

System Certification and IEC 62941 PV Module Quality Management System standard GB/T 27922-2011 "Commodity

Certification. IEC 62941 PV Module Manufacturing Aftermarket Services Evaluation System" Quality System Certificate Silicon wafer side Battery side evaluation and certification and was awarded a five-star (the highest level)

Hongyuan New Material Hongyuan New

As information-based development has become a consensus in the PV sector HY Solar has rapidly laid out a new mode of certificate. (Baotou) Material (Xuzhou)

intelligent operation and maintenance introduced the Material Management System (SAP) Warehouse Management System (WMS)

Manufacturing Execution System (MES) Equipment Automation Programming (EAP) Statistical Process Control (SPC) System

and other smart factory information-based systems broken down the management requirements for reliability risks step by step 94 95.95

to achieve full-process automation from the in-warehouse of raw materials to the out-warehouse of finished products and an points points

information-based closed loop for business operations enhancing PV module production efficiency lowering costs and improving

the company's economic efficiency and market competitiveness.HY Solar (Wuxi) R&D and Testing Center is established in accordance with ISO 17025 standard and conducts sampling and testing of

production lines and products based on this standard and CNAS laboratory accreditation standards. The laboratory adopts the LIMS

management system and is capable of performing a full set of tests according to IEC 61215 and IEC 61730 standards. The company Module side

labels segregates evaluates and disposes of nonconforming products in accordance with the Nonconforming Product Control

Procedures to prevent nonconforming products from entering production use or project delivery. HY Solar (Wuxi)

97.62

points

Client demands

Project Introduction of new Raw materials Process 6S After-sales

management technologies management management management

SAP WMS MES After-sales service certification of goods

ISO 9001 IEC 62941

EAP SPC LIMS Responsible marketing

HY Solar builds a clear brand perception and puts responsible marketing into practice. It produces and uses promotional materials

in accordance with the Advertising Law of the People's Republic of China and the Responsible Marketing and Consumer Protection

Policy ensuring clients' right to be informed. We provide multi-language and detailed product brochures to convey true accurate

and full product information ensuring clients receive assured products and services. In addition the company has entered into a

Distributor Authorization Letter to regulate trademark use advertisement placement etc. During the reporting period there were

no incidents of non-compliance involving marketing communications product and service information & logos.Client satisfaction

26 27HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

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Sustainable supply chain GRI 308 | GRI 414 | SASB RT-EE-440a.1 Indicator 1 Unit 2024 2023 2022

Number of new suppliers signing the statement Supplier(s) 127 263 39

The company manages its supply chain under the concepts of fairness safety and transparency implements regulations including Percentage of new suppliers evaluated with questionnaires containing environmental and social indicators % 100 100 100

the "Procedures for Procurement Management and Control" and the "Supplier Management Procedures" and practices full-life Number of suppliers identified as subject to significant negative Supplier(s) 0 0 0

management on supplier onboarding on-site evaluation due diligence review and deactivation with its key attention to suppliers' environmental/social impacts

management on environmental protection labor rights and interests and business ethics aiming to avoid the negative impacts of Number of suppliers receiving training/conducting improvement Supplier(s) 0 0 0

the supply of materials on the production and operation and to fend off corporate social responsibility risk within the supply chain.

1 Statistical caliber: Hongyuan New Material (Baotou) Hongyuan New Material (Xuzhou) and HY Solar (Wuxi).

Related clause Key attention

Supplier management code Qualification system While meeting internal procurement needs we prioritize localized procurement to partner with local suppliers reduce

Procurement Management Production and Operation License | MSDS RoHS REACH | Intellectual Property transportation cycles and lower environmental impact.Control Procedure Certificate | Three-Standards-In-One System Certificate

Supplier Management Procedure

Supplier Code of Conduct Environmental protection Indicator Hongyuan New Material (Baotou) Hongyuan New Material (Xuzhou)

Supplier Due Diligence and Environment management compliance | Natural resource use and air pollution

Evaluation Sheet Climate resilience & GHG emissions reduction | Water wastewater & hazardous Percentage of 2024 81.21 82

materials management | Conflict minerals procurement expenditures within 2023 31.75 58

Supplier statement the province where the

Confidentiality Commitment Human rights guarantee company is located (%) 2022 80 88

Letter Anti-forced labor and child labor | Anti-discrimination | Occupational health and

Commitment to Anti-Commercial safety | Standard working hours and wages | Freedom of association and collective

Bribery and Anti-fraud bargaining | Female worker protection

Commitment to Safety and

Environmental Protection Corporate action Geographical distribution of

Commitment to Legal Anti-corruption and commercial bribery | Anti-money laundering and counter- HY Solar undertakes not to apply or primary and auxiliary material

Employment terrorism financing | Information protection and data safety | Fair competition and suppliers antitrust | Conflict of interest | Intellectual property | Export trade compliance | sell any conflict minerals or derivative

Whistleblowing and protection | Secondary suppliers management products and requires its suppliers to

take active measures to avoid using

any conflict minerals in their products.2

The company conducts a comprehensive review of the suppliers in terms of material quality service quality sampling effect All the self-operated minerals and

environmental & social evaluation etc. based on which it classifies and grades the suppliers implements rewards and the minerals used in our processing

punishments and provides training to the suppliers on defects. bases are sourced from domestic

mineral refining and smelting plants

with a clear place of origin compliant

Level-A excellent suppliers Level-B qualified suppliers Level-C general suppliers Level-D unqualified suppliers governance and no human rights

violations.Disqualify as a supplier temporarily

Priority on cooperation Normal procurement Training to suppliers and require full correction within based on demerits the time limit; If such correction

fails eliminate the supplier

Sustainable supply chain empowerment

To refine supply chain risk management HY Solar

(Wuxi)'s Procurement Department conducts specialized 2 It refers to metallic minerals such as

"ESG Sustainable Development" training to enhance gold (Au) tantalum (Ta) tungsten (W)

purchasing officers' skills and expertise. and tin (Sn) produced from mines

in conflict zones controlled by non-

government military groups or non-

military factions in the Democratic

Republic of the Congo (referred to as

3TG).

28 29HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Governance

* Policy commitment P32

* Sustainability management P34

* Stakeholder engagement P36

* Corporate governance P38

* Risk management P41

* Business ethics P42

Proportion of independent directors: 43 %

Proportion of female directors: 14 %

Employee coverage rate of integrity series training: 100 %

Confirmed cases of corruption: 0

Base coverage rate of the integrity risk identification:100 %

Confirmed information security incidents: 0

30 31HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

GRI 2-23 | GRI 2-24 | GRI 2-30 | GRI 405 | GRI 406 | GRI 407 |

Policy commitment GRI 408 | GRI 409 | GRI 411

Ten Principles of the United Nations Global Compact

Human Labor Environment Anti-

rights corruption

Principles Principles Principles Principles

Respect and uphold internationally Uphold freedom of association and the right to collective bargaining Adopt a precautionary approach to environmental challenges The enterprise should oppose all forms of corruption

recognized human rights including extortion and bribery

Eliminate all forms of forced and compulsory labor Take on environmental responsibility

Not engage in any acts that ignore or

infringe upon human rights Revoke child labor practice Promote the development and promotion of eco-friendly Actions

technology

Actions Eliminate discrimination in employment and occupation Conduct risk and internal audits

Formulate the Employee Handbook Actions Actions Organize integrity series training

and refrain from engaging in any acts

that ignore or infringe upon human Establish a diverse communication mechanism such as the Hongyuan GHG verification Pave rooftop PV

rights Voice Platform Suggestion Boxes and Employee Symposiums Apply for product carbon Conduct energy

Establish the Employee Representative Organization and Labor Laws footprint certification conservation and

Supervisory Committee technological improvement Build a zero-carbon

Implement rigorous age verification procedures and use the factory Recover and recycle steam

Personnel Registration Form to confirm personnel information by condensation

Care for female employees and recruit disabled employees

32 33HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

GRI 2-19 | GRI 3 | GRI 2-13 | GRI Structure of the Sustainability Committee

Sustainability management 2-14 | GRI 2-16 | GRI 2-17

HY Solar Board of Directors

Topics management Strategy and Sustainability Committee

The company conducts annual materiality research to identify stakeholders' interest in topics of high relevance to the company.We follow GRI standards for dual substantial analyses prioritize topics based on sustainability trends and expert advice and

proactively disclose our progress.ESG Decision-making

Topics for 2024 Topics for 2023 Changes and reasons The Board of Directors the highest decision-making body for ESG takes

Tax strategy - Add issues to respond to capital overall responsibilities in the formulation of corporate ESG strategic market concerns planning policies and work plans and considers and approves ESG annual

Sustainable supply chain

Responsible supply chain reports.Conflict minerals management Consolidate issues adjust

presentation and extend issue

Climate change response content

Low-carbon operations

Cleantech opportunity

Specialized Committee on Specialized Committee on Specialized Committee on

Environmental management system Environmental compliance management Environmental Governance Social Responsibility Corporate Governance

Adjust presentation

Protection of employees' rights and interests Employee recruitment diversity and inclusion

Materiality matrix ESG Coordinating

High

Business ethics Specialized Committees under the Strategy and Sustainability

Committee develop the development goals in environment society

Information security and privacy protection Protection of employees' rights and interests

and governance responsibility and assist in resolving ESG-related

Low-carbon operations Product quality and safety matters.Environmental management system Occupational health and safety

Energy management Responsible supply chain

Water management Product lifecycle management

Human Resources

Waste and hazardous substance management General Manager Office EHS Department Human capital development Department

Sci-tech innovation

Securities Department Finance Department Legal Department

Corporate governance

Risk management

Community relations charity and public welfare

Tax strategy

Biodiversity conservation ESG Working Group

Client relationship management

Investor relations It is composed of various departments of the corporate headquarter

and is responsible for implementing Specialized Committees'

objectives coordinating and promoting the implementation of ESG

tasks preparing annual ESG reports and strengthening the influence of

Low Impact on HY Solar's business development and finance High internal and external sustainable development of the company.

3435

Impact on the environment and societyHY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Stakeholder engagement Advanced study of sustainability

capacity

Stakeholder Communication channel Response chapter Regulators have clear regulations on the training of directors supervisors and senior officers of listed companies and the company

emphasizes cultivating its employees' capacity in finance business ethics green development low-carbon and social responsibility

Employee activities employee congress training activitiesEmployee that are connected with sustainability. During the reporting period the incumbent independent directors and senior officers

Handbook fulfilled the compliance requirements and completed the qualification training offered by the Stock Exchange and the Listing

Association while the employee representatives completed the related courses and advanced studies to enhance their sustainable

Hongyuan's Voice development knowledge.Employees (including Humane orientation

the labor union) Internal mail system

Office automation system

Notice board "Set Sail - New Quality

Compliance training Productive Forces"

Information disclosure for CFOs of listed training (special companies in Jiangsu session of green and

Shareholders' meeting Province low-carbon) Special course on

Shareholders and Ongoing on-line and off-line communication (investment seminars Governance Special training on "Key Points and

other investors performance presentation SSE E-interactive investor mailboxes Sustainability Reporting Suggestions for Anti-

and hotlines) (ESG) for listed fraud Performance by

companies Training Independent Directors

Media communication of Listed Companies"

courses Technology innovation

Off-line exhibitions & conferences Follow-up training for Product innovation interface exchange

Clients and consumers independent directors of Jiangsu private

Client satisfaction survey Quality service enterprises

Regular supplier training

Exchanges and visits

Business partners Sustainable supply chain

Supplier review

Feedback from monitoring channels

Regulatory meeting

Government and Low-carbon

regulators Physical inspection

Governance

Information disclosure

Off-line exhibitions & conferences Value creation

Symposia

Non-government Governance

organizations Media communication

Low-carbon

Corporate publications

Humane orientation

Press releases

Company visits

Local community

(including community Community volunteering activities Humane orientation

residents)

Public service activities

36 37HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Corporate governance GRI 2-9 | GRI 2-10 | GRI 2-11 | GRI 2-15 | GRI 2-19 Management system overview

Organization form A company of a two-tier system with the Board of Supervisors

Corporate governance is a critical focus for investors and the capital market with a strong governance structure ensuring enterprise

value enhancement. HY Solar establishes a corporate governance structure consisting of the shareholders' meeting the Board Director 7 directors (including 1 female director and 3 independent directors)

of Directors and its Specialized Committees the Board of Supervisors and the senior management in accordance with the laws

regulations and guidelines of the Stock Exchange to improve its corporate governance and safeguard investors' rights & interests. Chairman of the Board of Directors Not concurrently serving as the General Manager

Supervisor 3 supervisors (including 1 employee representative supervisor)

Voluntarily established committees Strategic Committee Audit Committee Remuneration and Appraisal

Committee and Nomination Committee

Board of Directors

Meetings to strengthen supervision 3 special meetings of independent directors were held in 2024

As the highest corporate governance body the Board of Directors is responsible for the shareholders' meeting. Directors are

elected or replaced by the shareholders' meeting in full consideration of the sector in which the organization operates and the

diversity and independence of the candidates. The current Board of Directors consists of 7 members with a Chairman of the

Board who is functionally separate from the Chief Executive Officer to avoid potential abuse of power. The Remuneration and

Appraisal Committee proposes the remuneration plan for directors which shall not be implemented until it is approved by the

Board of Directors and deliberated and passed at the shareholders' meeting. The remuneration allocation plan for the managers Shareholders' meeting

shall be submitted to the Board of Directors for approval. The annual allowance system is adopted for independent directors.Non-independent directors and senior officers receive salaries according to their positions with reference to the compensation

level of similar positions in the same sector and based on the company's annual performance assessment system and their The Board of Directors convenes shareholders' meetings in accordance with the Articles of Association to ensure that all

accomplishment of performance indicators. shareholders are granted equal status and may fully exercise their rights.

43%214%

Proportion of independent directors Number of special meetings of Proportion of female

independent directors directors 1 1 21

annual general meeting extraordinary general meeting proposals deliberated and adopted

10100%7

Number of board meetings Attendance rate of directors Number of special board

in person meetings

Experience and skills Experience and skills Strategy and Remuneration

Name Title Gender Age Academic Audit Nomination Sustainability and Appraisal

qualification Business Marketing & Technology & Committee Committee

Globalization Finance Legal Committee Committee

operations market manufacturing

Yang Jianliang Chairman of the Board 56 Junior college degree

Yang Hao Director 33 Master's degree

Hang Hong Director 57 Junior college degree

Ji Fuhua Director 55 Bachelor's degree

Zhu Xiangjun Independent director 56 Master's degree

Wu Ge Independent director 57 Doctor's degree

Ji Weixi Independent director 64 Doctor's degree

Hang Yuebiao Chairman of the Board of Supervisors 56 Junior college degree

Chen Nianhuai Supervisor 51 Junior college degree

Zhu Yongzhong Employee representative supervisor 57 Junior college degree

Note: " ▲ " denotes the position of committee director whereas " △ " denotes the position of committee member.

38 39HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Board of Supervisors Risk management IFRS RR-ST-410a.2 | SASB RT-EE-250a.1 | SASB RT-EE-250a.2

The number and composition of the Board of Supervisors meet the requirements of laws and regulations. Taking on the

responsibility to shareholders all supervisors diligently supervise the behavior of directors and senior officers in performing their

duties. The Board of Supervisors drafts a remuneration and performance incentive plan for supervisors and submits it to the We realize that the stakeholders' awareness of participating in corporate governance is growing stronger with the times and there

shareholders' meeting for consideration. Supervisors are remunerated in accordance with the positions they hold with reference is an expectation for enterprises to fulfill their legal obligations and proactively assume environmental and societal responsibilities.to the compensation levels of similar positions in the same sector and based on the company's annual performance assessment The Board of Directors serves as the company's highest risk governance body responsible for planning and establishing the risk

system and the accomplishment of performance indicators. management structure formulating risk management policies & related guidelines and supervising the implementation of risk

management measures which shall cover quality management environmental protection work safety labor contract M&A and

investment etc. to ensure the safety of assets personnel production quality environment reputation and other elements. By

regularly collecting feedback from various departments and conducting risk assessment meetings we identify potential legal market

33 % 6 100 % operation and other risks to evaluate the risks we face and measure their severity and likelihood. In addition the Legal Department

formulates the Management Measures for Legal Affairs to regulate the company's business behavior and carry out trainings on legal

Percentage of employee Number of supervisory Attendance rate of knowledge and contract review practice.representative supervisors board meetings supervisors in person

Under the guidance of the Management Measures Internal Audit we executed a total of 25 internal control and evaluation projects

during the year including financial audit exit audit special audit etc. and identified 45 non-conformities of which 31 have been

corrected and the remaining 14 are being followed up and controlled.Investor communication

HY Solar communicates and interacts with its investors emphasizing listening to investors' feedback and improving market value

management. We update our operation information through the "Investor Relations" column on our website results briefing

sessions shareholders' meeting SSE E-Interactive and other channels to inform investors of our status. The company was awarded

level B in 2024 by the Stock Exchange in the information disclosure assessment.Review content

8039417

Number of Number of Number of Number of responses HSE risk Moral hazard Operational risk

notices released responses to SSE performance to questions from the

E-Interactive briefing sessions performance briefing sessions Waste silicon materials work- Audit of the integrity of the Procurement process

related injuries declaration Procurement Department exit base production material

use of pharmaceuticals in the audit of officers etc. requisition etc.sewage station etc.Tax governance

The company accurately calculates all taxes and charges makes tax returns on time avoids tax risks in strict accordance with

applicable national laws and regulations and accepts the inspection and supervision of tax and other competent authorities in

accordance with the law. We formulate and constantly improve our Tax Management System specifying the requirements for such

management tasks as tax policy research formulation of tax planning and scheme management of daily tax matters tax inspection

and risk management.Major taxes Tax incentives

Corporate income tax Preferences for high-tech enterprises; Corporate income

Value-added tax

tax preferences for encouraged enterprises in the western region

Urban maintenance and construction tax

Corporate income tax

Value-added tax: Additional deduction policy immediate levy and refund for

Teaching supplements

software products

40 41HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

GRI 2-16 | GRI 2-10 | GRI 2-11 | GRI 2-15 | GRI 2-19 | SASB RT-EE-510a.1 |

Business ethics Culture construction SASB RT-EE-510a.2 | SASB RT-EE-510a.3

To implement the work concept of "addressing both symptoms and root causes

prioritizing prevention and maintaining all-hands supervision" the company

regularly carries out integrity promotion activities for employees and suppliers

Mechanism guarantee improving stakeholders' recognition & understanding on integrity risks and

fostering a risk management culture aligned with business operations. Internally

the company has all employees sign the Commitment to Integrity Practice

Incorporating "integrity" and "pragmatism" into its core values HY Solar is committed to shaping a corporate image of integrity upon recruitment and has adopted a variety of approaches for regular integrity

trustworthiness and professionalism in all business activities while building a vibrant and healthy industrial ecosystem. The education emphasizing the prohibition of bribing clients in any form the

company attaches importance to the construction of integrity culture by formulating the Anti-Unfair Competition System the prevention of slinging mud on competitors and the reinforcement of employees'

Integrity Management System the Supplier Code of Conduct the Supplier's Honest Cooperation Agreement and other series bottom-line awareness. Externally we have revised the Supply Contract

of documents to regulate the business behavior of its officers employees and suppliers. All subsidiaries conduct an annual re- Template reorganized and compiled a new version of the Supplier Integrity and

examination of the integrity risks associated with key positions such as Procurement Sales Production R&D Finance and HR Confidentiality Commitment Letter to ensure the consistency of the integrity

identify the integrity risks by analyzing the systems and processes position duties and personnel behaviors and implement tiered clauses and organized suppliers to re-sign the new version. The Procurement

management for positions with different risk levels in accordance with the level of integrity risks. Department regularly publicizes the company's integrity policies to suppliers to

ensure their awareness of the integrity policies.Publicity of integrity whistleblowing

Management content

Series training on integrity

It is prohibited Any favoritism or It is prohibited It is strictly

to solicit bribes personal gain at to have irregular prohibited

from or give/ the company's economic to disclose

provide any expense is and personal to unrelated

illegitimate prohibited dealings with persons any

benefits to stakeholders bidding prices

clients by taking work plans key

advantage of data technical

official positions documents etc.Anti-corruption Anti-fraud Support in fair Guarantee of

competition information security Training on integrity management system Prevention of work-related crimes in corporate settings

Avoidance

of conflict of Anti-money

Standerdization

in sensitive

interest laundering transactions

It is prohibited It is strictly It is strictly

to utilize the prohibited to deal prohibited to

information with accounts accept high-

learned for and expenses value banquets

personal gains in violation of or accept

regulations gifts that may

or make false/ affect the fair

misrepresented performance of

expenditures official duties

Training on anti-unfair competition

42 43HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Whistleblowing management

Information security precaution measures

HY Solar has set up a mechanism for whistleblowing to

engage both internal and external partners in integrity

construction. The related parties may report the Reporting E-mail: hongyuanjc@hongyuanxcl.com Sign the Information Security Confidentiality Agreement with employees

company on fraud malpractice falsehood and other Regularly conduct social engineering phishing email drills and server vulnerability drills

unethical behaviors of employees or partners' personnel Reporting tel.: 0086 18921275176

through e-mail telephones letters and other ways they Carry out information security education & training and push posters & desktop messages

consider convenient and safe. We take measures to Mailing address for reports: General Manager Office

ensure the confidentiality of whistleblowers' personal No. 158 Nanhu Middle Road Binhu District Wuxi City Implement strict access control policies and restrict permissions according to job responsibilities & needs

information and all reported data and to eliminate and Jiangsu Province Configure multi-layer firewalls WAF systems and antivirus software to identify and protect against external

crack down on any retaliation against whistleblowers attacks

or witnesses. During the reporting period the company

was not subject to any external anti-corruption Internal Regularly review the server login logs

investigation or punishment.Take encryption protection for files with encryption system

Regularly execute server & system data information backup & recovery drills

Information security Conduct due diligence on the purchased cloud platform and validate audit reports prepared by third parties

In 2024 a qualified third-party organization was engaged to conduct vulnerability scans across all plants

The rapid development of information technology and the popularization of digitalized network systems have significantly with remediation and recovery being made based on the test report

enhanced business operational & production efficiency but they have also brought about network information security risks

including network disruptions hacker attacks and data leakage. HY Solar attaches importance to the information asset security

of employees and partners by implementing a "three lines of defense" mechanism of information security ensuring robust

information security governance and enhancing measures to protect the company's information assets & personal data.Coordination Infomation Security Committee

Management Information Security

Working Group

Execution Department Information Cybersecurity Administration

Security Head Department Department

"Three lines of defense" of information security

Information security management training materials and records

To strengthen system resilience and minimize human errors the company constantly strengthens information security management

through overall planning -- from system improvement to reinforcement works network monitoring to personal management and

hardware upgrades to software optimization including regular software and system updates security evaluation monitoring of

malicious activities formulation of emergency response plan etc. Indicator Unit 2024 2023 2022

Employee coverage rate of integrity series training % 100 100 100

Signature rate of Supplier Integrity Commitment Letter % 100 100 /

Office Internet use Encryption Weak current Case generated via whistleblowing channels Case(s) 0 0 0

OA system

equipment behavior management machine room Confirmed corruption case Case(s) 0 0 0

Coverage ratio of integrity risk identification bases % 100 100 /

Emergency Backup & Media Endpoint Cookie Confirmed information security incident Case(s) 0 0 0

response plan recovery confidentiality security management Stakeholders affected by information security issues Person(s) 0 0 0

Push rate of online platform information security trainings % 100 100 /

Information security defense system

44 45HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Low-carbon

* Climate change P48

* Environmental compliance management P51

* Energy management P54

* Water management P56

* Pollutant emission and waste management P58

* Biodiversity P59

Environmental performance

Environmental input: RMB 76.9345 million yuan

Renewable energy consumption: 6318.56 MJ

Circulating water consumption: 146879300 tons

Number of energy conservation optimization projects: 36

Number of water conservation & recycling projects: 16

Air pollutant emission: 100 % compliance

Wastewater emission: 100 compliance

Number of environmental violations: 0

46 47HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Climate-related impact risk and opportunity management

Climate change GRI 302 | GRI 305 | TCFD A | TCFD C

Risk type Impact analysis Countermeasure

Extreme ·May cause malfunctions operation

weather disruptions and damages to production

As a crucial component of renewable energy PV businesses are facing unprecedented challenges and opportunities in the context cyclones/ equipment resulting in lower production ·Formulate an emergency response plan strengthen emergency

of accelerating global climate change. As a leading enterprise in the PV sector HY Solar profoundly understands the challenges hurricanes/ efficiency higher maintenance costs and monitoring promptly release relevant information and carry out damaged products;

that climate change poses to the global environment and economy. To constantly monitor and evaluate climate change risks and typhoons emergency drillsAcute extreme ·May cause power disruption or even plant ·Select more robust raw materials conduct regular inspection

opportunities while taking proactive countermeasures to promote low-carbon transformation of the enterprise itself and its value entity heat unusual destruction in extreme cases posing a and maintenance strengthen the inspection of external power

chain we are establishing a climate change control system structured around four pillars: governance strategy risk management risk rainfall threat to lives and property safety of staff facilities and set up backup power sourcesand clients;

and indicators & targets based on the guiding principles of International Financial Reporting Standards (IFRS) and the Task Force on floods ·Equip emergency supplies establish emergency rescue

droughts ·May lead to production and transportation teams conduct emergency drills and enhance personnel's

Climate-related Financial Disclosures (TCFD). earthquakes disruption affecting the production emergency response capacity

etc. capacity of the company and its suppliers and leading to delay in delivery.·Temperature change may indirectly affect ·Strengthen the ventilation of workshops set up air

Chronic Temperature equipment operation and lead to equipment conditioners fully recover heat energy for heating and issue

entity change malfunction; Sustained high temperature cooling materials in summer to lower the temperature of

risk may affect the efficiency of the operating workshops and ensure a suitable working environment

Governance personnel

·Set up a strategic analyses team to track and analyze policies

Regulations Given our global client base and the regarding global climate change and carbon emissions

and policies

The company places significant emphasis on climate change issues integrating them as a key consideration in its operation presence of our plants in multiple ·Study the potential impact of regional policies and regulations Policy governing countries the increasingly stringent policies on our business in cooperation with third-party organizations

strategy. Based on our sustainable management structure we have established a climate change governance system led by risk carbon regarding climate change and carbon and make timely adjustments

the Board of Directors guided the Sustainability Management Committee to formulate and improve its climate change related emissions emission worldwide will lead to greater ·Conduct compliance review on our suppliers implement are

strategies supervised and reviewed the action practices for climate change and managed climate change risks and opportunities regulatory compliance pressures monitoring formulate green supply chain goals and tightening management policies and eliminate suppliers at risk

in a sustainable and effective manner from top to bottom.·Low-carbon has become the mainstream

trend in the development of wind ·Set up R&D Center to constantly strengthen technology

Competitiveness turbine technology and fierce market investment and promote low-carbon technology innovation

Technology of low-carbon competitiveness demands more resources ·Overcome traditional technology limitations by leveraging

risk technologies for R&D to maintain the industry-leading

Strategy multiple exclusive core technologies position otherwise we will lose market

competitiveness

Our long-term goal is to become carbon neutral. The company closely integrates its climate strategic approaches with its business Litigation on net-zero ·Differences of public understanding in net-

·Ensure that the zero carbon concepts used in product

decisions by evaluating both the actual and potential impacts of climate change on its business strategy and financial planning. We carbon zero carbon concepts and environmental

promotion and sales are unambiguous based on expert advice

attributes of products may lead to litigation. ·Establish a specialized Legal Department to help the company

aim to comprehensively formulate our climate strategic planning from GHG emissions management energy management resource products avoid litigation-related risks

management carbon market to system construction. By leveraging newly developed clean technologies and optimized production

processes we aim to create green low-carbon PV products and services implement green low-carbon manufacturing practices and Legal ·Enhance compliance management strictly implement laws risk ·With the advancement of the dual-carbon and regulations early plan the production & discharge design

build a sustainable ecological environment. Legislation target China may introduce laws and and manage with improved standards

on climate regulations to specifically address climate ·Participate in formulating and drafting product-related

change change imposing more stringent demands standards

on the optimization of the energy structure ·Help clients achieve energy transformation and enhance their

for the entire society environmental performance by leveraging the advantages of our

products and technology

Risk management

·Clients have a gradually increasing ·Upgrade technology to improve power generation efficiency

Client demand for renewable energy and low-

reduce KWh cost and gradually increase market share

·Optimize product carbon footprints through the product life

The company is committed to establishing a climate change governance system. Looking ahead we will consider our business Market behavior carbon wind turbine products cycle environmental impact assessment low-carbon product

characteristics and internal & external development environments while fully identifying and evaluating the climate-related risk change ·Stringent requirements on product carbon footprint may cause Envision to lose design and other projects

impacts risks and opportunities to formulate the process for identifying analyzing and controlling climate-related risks and product orders ·Constantly track and feedback changes in market demands and promptly adjust business planning

opportunities. We will integrate climate risk management into the existing risk management system to constantly monitor and

evaluate our capacity to cope with climate change enhancing our climate resilience.Increase in ·Stakeholders are quite concerned about the green and low-carbon performance of the ·Commit to being the first in the sector to achieve carbon concerns

or negative company and its products

neutrality across the value chain

As of the end of the reporting period Hongyuan New Material (Baotou) has taken the lead in fully identifying the climate risk Reputational

feedback ·Any inconsistency between the company's

·Invite third-party organizations for full value chain carbon

verification

types evaluating and analyzing their impacts and formulating the countermeasures which lay the foundation for its subsequent risk from claimed climate action goals and program implementation versus its actual actions ·Regularly announce to the public the fulfillment of the construction of a comprehensive climate risk control system. stakeholders may damage its reputation company's climate change goals and milestone action plans

48 49HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Indicators and targets Environmental compliance GRI 302 | GRI 303 | GRI 306

HY Solar follows the international climate action goals and relevant initiatives and responds to the global average temperature rise management

control goal under the Paris Agreement and China's strategic goals of "carbon peaking by 2030 and carbon neutrality by 2060". To

accelerate the implementation of its carbon neutral goals the company formulates goals and indicators of energy water resources

wastes etc. manages its GHG emissions constantly monitors the target implementation and makes every effort to address climate

change. Environmental management system

HY Solar strictly adheres to the Environmental Protection Law of the People's Republic of China and other national and local

GHG management environmental protection laws and regulations placing significant emphasis on the impact of its operations on the environment. The company has established a systematic environmental management system formulated environmental protection responsibility

system and built a comprehensive environmental management structure clarifying the division of labor and responsibilities at all

The company constantly conducts quantification of its GHG emissions at the organization level. During the reporting period HY levels and integrating environmental management into its businesses. As of the end of the reporting period all operations sites

Solar (Wuxi) verified its GHG emissions for 2023 and formulated GHG improvement actions to facilitate the company's steady of the company have passed ISO 14001 Environmental Management System Certification. In 2024 the company's investment in

progress on its path toward sustainability. In 2024 the company quantified its total GHG emissions at the organization level (Scope environmental protection amounted to RMB 76.9345 million yuan including the costs for renovation environmental protection

1 and Scope 2) resulting from the consumption of natural gas gasoline diesel and outsourcing electricity within its operations facilities disposal of hazardous wastes renovation of rainwater and sewage pipes remediation under emergency response plans

boundary totaling 2087356.14 tons of carbon dioxide equivalent. environmental monitoring etc.GHG emissions at the organization level (Scope 1 and Scope 2):

Indicator Emission source Unit 2024 2023 2022

Environmental protection risk management

Scope 1: Total direct GHG emissions 2696.33 8784.70 530.11

The company has formulated the Control Procedures for Identification and Evaluation of Environmental Factors and Procedures for

Natural gas 2251.28 8238.18 155.38 Identification of Dangerous Sources and Risk Evaluation and regularly conducted environmental risk identification evaluation and

Scope 1: Direct GHG emissions Gasoline 293.74 299.31 181.02 management & control measures to ensure full alignment of all activities with environmental protection standards. We have set

Tons of carbon clear environmental goals and indicators for important environmental impact factors and developed corresponding management

Diesel dioxide equivalent 151.31 247.20 193.71 plans and emergency response plans to control key environmental factors. During the reporting period the company did not incur

Scope 2: Indirect GHG emissions Outsourcing any administrative penalties for breaches of the environmental protection laws and regulations nor were there any major incidents

from energy electricity 2084659.81 1683056.76 1100561.76 involving pollutant leakage or environmental violations.Total GHG emissions

(Scope 1 and Scope 2) 2087356.14 1691841.46 1101091.88

Tons of carbon

Emission intensity of ten thousand yuan output dioxide equivalent /

value 1.43 0.50ten thousand yuan 2.86

output value

Note: The scope of operation boundary at the organization level in 2024 includes HY Solar HY SOLAR (Wuxi) Hongyuan Energy (Baotou)

Hongyuan New Material (Baotou) Hongyuan New Material (Baotou) and Hongyuan New Material (Xuzhou). Only the GHG

emissions from natural gas gasoline diesel and outsourcing electricity are quantitatively calculated.

50 51HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Environmental training

Hongyuan New Material (Baotou) has formulated the Environmental Protection Education and Training System conducting

online and offline environmental protection training through routine and special environmental protection education training

on the environmental emergency response plan etc. Environmental emergency management training and drills have been

regularly conducted with all trainings being recorded in detail and filed. The training covered general knowledge of environmental

protection laws and regulations identification of environmental factors as well as management practices regarding solid waste

environment energy conservation & emission reduction and major hazardous sources. In 2024 the company organized 64

environmental protection training sessions for all employees which were attended by 5707 employees and lasted for 20000 hours.In 2024 The number of participating

the company organized employees reached The training duration exceeded

64570720000

environmental protection training hours

sessions for all employees Special training on environment and energy conservation & emission reduction Training on general knowledge of

environmental protection laws &

regulations and solid waste management

Subsidiaries 2024 environmental targets Fulfilment in 2024

100% compliance of domestic sewage and rainwater discharge Fulfilled

100% compliance of VOCs discharge Fulfilled

100% compliance of day and night noise discharge

HY Solar (Wuxi) Fulfilled

100% compliance of hazardous waste disposal Fulfilled

100% compliance of general solid waste disposal Fulfilled Special safety training on environmental Training on management requirements Training on hazardous chemical safety

factor identification for major dangerous sources management

Zero soil & water pollution accidents Fulfilled

100% wastewater reuse and 100% compliance of waste gas emission Fulfilled

100% compliance of solid waste & hazardous waste disposal Fulfilled

Hongyuan Energy (Baotou) 100% synchronized operation of environmental protection management facilities Fulfilled

100% compliance of plant boundary noise Fulfilled

Zero environmental pollution accidents with media exposure or impact at

the municipal level and above Fulfilled

Zero environmental pollution accidents Fulfilled

100% implementation of the environmental emergency response plan Fulfilled

Hongyuan New Material (Baotou)

100% soundness & operations of environmental protection facilities Fulfilled

100% collection of solid waste and hazardous waste Fulfilled

100% management control and compliance of environmental emission

indicators Fulfilled

Hongyuan New Material (Xuzhou) 100% disposal of environmental protection facility operation abnormality Fulfilled

Zero EHS government penalty incidents Fulfilled

Drills and training on warehouse chemical leakage

52 53HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Energy management GRI 302 | TCFD A | IFRS RR-ST-130a.1 | SASB RT-EE-130a.1 Case Temperature retrofit at lamination/string welding zone

By installing metal wall panels around the lamination area adding removable sliding doors at the front and rear assembly lines and

retrofitting the discomfort of the operators in the lamination area and other actions HY Solar (Wuxi) controlled the temperatures

Taking energy management as an important strategic task HY Solar strictly abided by relevant laws and standards and formulated before lamination and at places like curing test areas alleviating operators' discomfort in the lamination area while reducing the

the Energy Management Standards as well as other regulations and process mechanisms regarding energy management. We set operation of power-consuming equipment. Take air-conditioners as an example this could save about 663600kwh of electricity

up a functional department responsible for energy management to clarify energy management responsibilities establishing and annually on the assumption that they operate 300 days a year.implementing an efficient energy management system. During the reporting period Hongyuan New Material (Baotou) HY Solar

(Wuxi) and HongYuan New Material (Xuzhou) have passed the ISO 50001 Energy Management System Certification which will cover

more production bases.Energy use

Environmental performance

Indicator Unit 2024 2023 2022

m3 1045289.93 13830709.00 77706.16

Natural gas

GJ 37221.21 492490.84 2767.00

L 133534.82 141547.74 75530.16 Temperature Retrofit Project at Lamination/String Welding Zone

Gasoline

GJ 4174.95 4425.47 2361.44

L 5632376 95056.23 74405.00

Diesel

GJ 2020.46 3409.87 2669.07 Energy conservation technology reform of heat recovery pumps in the PV cell workshop by

Case changing the working frequency

kWh 3132874805.00 2951177915.00 1929794431.00

Outsourcing electricity

GJ 1122788349.30 10624240.49 6947259.95 In 2024 Hongyuan New Material

(Xuzhou) adjusted the speeds

Total energy consumption GJ 11321765.91 11124566.67 6955057.47 of the heat recovery circulating

Consumption of outsourcing electricity as a

percentage of total energy consumption % 99.62 95.50 99.89

water pumps for different working

conditions by temporarily connecting

Energy intensity of ten thousand yuan output GJ/ten thousand 15.50 9.38 3.17 the standby chilled water frequency value yuan output value control cabinets to the pump motors

for frequency control in order to

make the equipment operate in a

HY Solar takes on its heavy responsibility more efficient and safe manner. We Technology Transformation Project for Restoring the

for energy conservation and efficiency Case Automatic Control System completed the energy conservation

with practical actions and each base technical transformation of the heat

actively explores and carries out energy Through its technology recovery circulating water pumps by

reduction technology transformation transformation project for changing the working frequency and

with its own process characteristics restoring the automatic further optimized their operational

to effectively improve energy use control system Hongyuan parameters. During the transition

efficiency. The company sets clear its Energy (Baotou) aimed to save season a single heat recovery pump

yearly energy management targets and energy reduce carbon lower (220 KW) was connected to the control

organizes relevant trainings to enhance energy costs decrease the cabinet of the standby chilled water

the employees' energy management workload of skilled technicians pump and operated at the changed

awareness and skill level. In 2024 the in process design and master working frequency (30 Hz) for about

company promoted a total of 36 energy control optimize the reduction 5 months saving about 300000 kwh

conservation optimization projects. process reduce reduction of electricity per year on the premise

power consumption enhance that the pressure and flow rate were

secondary conversion rate and met. Obvious energy conservation and

help increase the deposition rate economic benefits were realized at the

of polycrystalline silicon. PV Cell Workshop.

54 55HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

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and Governance Report

Water management GRI 303 | IFRS RR-ST-140a.1 | IFRS RR-ST-140a.2 | IFRS RR-ST-410a.2 Hongyuan New Material (Baotou) technology renovation of reclaimed water

softening system Phase II

HY Solar strictly abided by national laws & regulations and local policies and gradually established a perfect water management

system to constantly strengthen water use management and optimize the water consumption structure. The company sources its Hongyuan New Material (Baotou) adopted a mixed process composed of filtration with bag filters ultrafiltration device

water from municipal water pipeline network and fire water pipeline network primarily for use in production operations office UV sterilization and reverse osmosis in its technology renovation of reclaimed water reuse system Phase II The process

utilities and fire emergency situations. During the reporting period there were no negative impacts on local water resources in terms was characterized by its advancement simple & stable operation high automation simple equipment pipelines a short

of water extraction consumption or discharge. construction period etc. The project was designed with a water intake capacity of 2500 m3/d producing 2250 m3/d of

water through net ultrafiltration and yielding 1350 m3/d from the reverse osmosis system. The produced water met the

requirements for cooling tower water. Reclaimed water softening system Phase II produced reclaimed water at 15 tons/

The company attached great importance to water management and each production base formulated its water resource use targets hour per day and machine pressurized and filtered water at 80 tons/hour per day which could reclaim 2520 tons of water

according to its own characteristics of water use in production. The company implemented water-saving measures including the per day if calculated comprehensively.recycling of steam condensate water the recycling and renovation of condensate water from air-conditioning rooms the supply of

diluted alkali wastewater to washing towers etc. These measures minimized the water resource consumption from the source to

reduce the operation risk arising from water shortage. During the reporting period the company has completed 16 water conservation

measures and water recycling projects with a recycled water of 146879278.70 tons.Case Steam Condensate Water Recycling Project

0.4 MPa steam surplus would occur when there were a large number of reduction furnaces operating during production process of

polycrystalline silicon and more steam surplus would occur in case of full-scale production (where about 72 reduction furnaces

were operating). By adding a steam condensing device Hongyuan Energy (Baotou) condensed and recycled the excessive 4 kg

steam with the dry air cooler to significantly reduce energy consumption and costs for water treatment & water replenishment

saving energy and water resource while reducing GHG emissions.Indicator Unit 2024 2023 2022

Total water intake 10080437 9307220.88 6824387

Total water discharge t 6168759 4344412 2038524.60

Total water consumption 5871043 4515265.88 4785862.40

Circulating water consumption t 146879278.70 / /

56 57HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

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Pollutant emission and Waste management GRI 306 | SASB RT-EE-150a.1 |

SASB RT-EE-150a.2

waste management The company formulated internal management measures such as the Management Measures for Solid Waste Pollution and the

Management Measures for Hazardous Waste and managed and disposed of wastes based on the categories. The company's solid

waste mainly falls within three categories: general waste domestic waste and hazardous waste. General solid waste is centrally

HY Solar strictly complied with applicable laws regulations and standards on environmental protection defining specific stored by category at the temporary storage room for general solid waste and the waste slag shed pending regular handover to a

management requirements for various discharges and wastes and preparing the relevant procedure documents. All functional qualified unit for treatment; Domestic waste is collected through garbage cans that are categorized and labelled pending regular

departments made sure through close collaboration that pollutants were managed and disposed of in a manner that minimized the treatment; For hazardous waste a qualified third part is engaged for treatment in strict accordance with the relevant laws and

impact of production and operations on the ecological environment. regulations. In addition the company conducts training for operators and officers involving in hazardous waste once a year with

training records maintained. During the reporting period there was no accident in which the company was subject to penalty for its

pollutant exceeding the standards or discharged in violation of regulations.Air pollutant management Indicator Unit 2024 2023 2022

Hazardous waste 660.58 59.64 10.69

The air pollutants produced during the company's production are mainly nitrogen oxides Air pollutants was General solid waste t 55638.53 31760.72 29100

sulfur oxides and particle matter. We formulated internal management documents including discharged in

the Management Measures for Wastewater Waste Gas and Noise the Management and Control Total waste volume 56299.11 31820.36 29110.69

Procedures for Wastewater Waste Gas and Noise etc. We engaged a qualified third-party

environmental testing organization to test regularly in strict accordance with the requirements 100 %

outlined in the pollutant discharge permit with all of the test results meeting the relevant compliance with standards

requirements. During the reporting period there was no accident of excessive emission of waste

gas and air pollutants were discharged in 100% compliance with standards.Noise management

Wastewater management The company has formalized related noise management measurements and set up responsible departments for noise management

in accordance with regulations and standards such as the Emission Standard for Industrial Enterprises Noise at Boundary. We

The company strictly abided by the applicable laws and regulations. In accordance with conducted spot check and maintenance of equipment generating pollution immediately dealing with any abnormalities; took

relevant laws and based on the characteristics of its own production process each production 100 % appropriate blocking and isolation measures for noise sources to ensure that the noise at the plant boundary complied with the

base formulated wastewater management procedures and conducted continuous monitoring. standards; and equipped its employees with noise protection devices during operation in the vicinity of noise pollution sources to

Hongyuan Energy (Baotou) reclaimed all of its production wastewater after treatment at its of the company's overall ensure their physical and mental health improve their working experience while reducing impacts on the neighboring communities.wastewater treatment station realizing zero discharge. As for domestic wastewater the canteen wastewater was discharged During the reporting period the company received no noise complaints.wastewater was pre-treated through the kitchen-specific grease trap facilities combined with

the general domestic wastewater pre-treated by septic tanks and treated by the industrial compliance with standards

silicon treatment facilities for domestic wastewater to ensure that it reached Level 3 of the

Integrated Wastewater Discharge Standard before being sent to the Park's wastewater treatment

station for subsequent treatment. During the reporting period 100% of the company's overall

wastewater was discharged in compliance with standards.Biodiversity GRI 304

Case Water Reclaiming Project of Drainage Outside the Sewage Station

The company attaches constant importance to issues regarding ecosystem and biodiversity protection and strictly adheres to the

Hongyuan New Material (Baotou) has built a sewage station and the treated water met all ecological protection redline. None of the company's base projects are developed constructed or sited within near or outside

indicators and requirements for reclaimed water. To reduce the consumption of tap water natural resource conservation areas nor in biodiversity-rich regions outside conservation areas. We take ecological impacts into

during production Hongyuan New Material (Baotou) decided to launch the Water Reclaiming account during the site selection of a new project. During production we implement clean production take measures to prevent and

Project of Drainage Outside the Sewage Station Phase I and Phase III for technology innovation control pollution manage and control the risk of soil and groundwater pollution and endeavor to reduce the negative impacts of

for reduced or zero discharge. The wastewater discharged from the sewage station was sent to GHG emissions discharges and resource use on biodiversity during operation. During the reporting period there were no significant

the power station for reuse and it replaced the supplementary tap water in the power station impacts on biodiversity attributable to the company's production and operation activities or its products and services.and was recycled outside the closed cooling tower after treatment so that water resource was

saved. After the completion of the project in 2024 based on the data of the base period and the

statistical period this Project reduced the water intake per product unit by 8.94 m3/t or saved

water by 558742.49 m3 per year calculated on the basis of the annual production discounted

with the load in the base period. Water was reclaimed by 1530.8 m3/d after sewage treatment

and reused at the machining workshop and circulating cooling tower resulting in reduced

sewage discharge of 558742.49 m3 and annual energy consumption of 23.36 tce (equivalent

value).

58 59HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Humane

orientation

* Employees' rights and benefits P62

* Talent cultivation P65

* Occupational health P67

Employee coverage rate of collective contracts: 100 %

Proportion of female employees: 22.20 %

Compliance rate of industrial noise: 1 00 %

Number of chemical leakage fire and

explosion serious injury and death accidents: 0

Coverage rate of medical examination and health records: 100 %

Training all employees and staff: approximately160000 hours

60 61HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

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and Governance Report

GRI 2-7 | GRI 2-8 | GRI

Employees' rights and benefits Diversity and inclusion 401 | GRI 402 | GRI 410

The company always adheres to the principle of acceptance and inclusiveness and provides equal working opportunities for the

disabled. During the reporting period we recruited 46 disabled employees. We constantly improve our system to fully protect

In strict compliance with local laws and International Labor Organization conventions HY Solar formulated a series of internal disabled employees' rights and interests. Hongyuan Energy (Baotou) has developed the Management Standards of Disability

management measures implemented the labor contract and collective contract system to ensure the full protection of employees' Subsidies clarifying the amount of subsidies for disabled employees.basic rights and interests such as labor compensation rest and leave occupational health and safety social insurance and vocational

skills training. In addition we have established a sound employee welfare and care system and standardized welfare management

through such documents as the Employee Handbook and the Management Measures for Employee Welfare to attract retain and

incentivize outstanding employees.Protection of women's rights and interests

Meanwhile we firmly oppose any form of discrimination adhere to the principle of equality and fairness and provide every employee

with fair development opportunities; We prohibit forced labor and child labor to ensure that all employees are legally admitted to the We always respect and attach great importance to female employees and

company and have reached the age of 18 maintaining the fairness and legality of the labor market. are committed to protecting the women employees' rights and interests.The total number of employees in Hongyuan 2024 is 6347 of which 1409

are women accounting for 22.20%. We implement the Law of the People's

Republic of China on the Protection of Women's Rights and Interests and

other applicable laws and regulations to ensure the full protection of

working mothers' legitimate rights and interests. In particular Hongyuan

Within the reporting period Energy (Baotou) organized mental health lectures for female employees

provided two cancer screenings set aside mother and baby rooms and

arranged maternity checkups and granted breastfeeding leave. Hongyuan

Employee coverage New Material (Xuzhou) took measures to protect female employees' rights

No No rate of collective and interests such as presenting benefits on International Women's Day. Hongyuan New Material (Baotou) organized the "521 Theme Activity: Caring

accidents of child labor complaints about child labor contract is for Female Employees" distributing free milk powder to pregnant women.forced labor discrimination or forced labor discrimination or

harassment occurred other labor 100 %

Rights and interests protection

We fully respect employees'

legal rights of free assembly and

free association encouraging

them to join the labor union.We are committed to creating a

diversified equal and inclusive

working atmosphere where

every employee can experience

a sense of belonging and value.

62 63HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

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Complete employee communication channels Talent cultivation GRI 404

We have established a diverse communication mechanism such as the Hongyuan Voice Platform Suggestion Box and Employee

Symposium to ensure that employees can effectively voice their ideas. Hongyuan New Material (Xuzhou) Base addressed all 259

pieces of employee voices within a week with a handling rate of 100% and organized 7 offline seminars and interviews attended Talent cultivation injects inexhaustible power for business development. We summarized training experience from the

by a total of 230 person times. Hongyuan New Material (Baotou) has set up the "Employee Voice Channel" to collect employees' previous year comprehensively updated the annual training plan and talent development management system and

opinions. provided case studies sales skills training product knowledge training English training etc. in light of the direction of

position development to enhance the staff's competence in actual practice and problem-solving.Democratic Life Meeting Hongyuan's Voice Employee

Suggestion Box

Meticulous employee care New employees training Training on answering frequently asked questions by customers

Hongyuan cares for its employees at the utmost. Hongyuan New Material provided cash assistance in total amount of RMB38202

for employees with serious illnesses in 2024. Hongyuan Energy (Baotou) responded swiftly by organizing fund-raising and providing

timely condolences when employees encountered difficulties. Each subsidiary implemented various employee care initiatives such

as Baotou New Materials coordinating the enrollment of non-local employees' children and HY Solar providing accommodation for

non-local employees.English training Silicon material application knowledge training

Staff Dormitory Staff Bookstore Staff Innovation Workshop

Diversified employment and internationalized strategy Tax knowledge sharing PV industry chain training

The company's talent development management system comprises the Management Measures for Talents and the Management

The company upholds the concept of professional and human-based protection of employees' rights and interests when developing Measures for Promotion and Demotion which clearly outline career development paths and promotion mechanisms to ensure fair

overseas markets. Flexible office policy is adopted for the overseas sales team to support home office and abandon the traditional and structured talent growth. The company attaches importance to the exploitation and utilization of internal training resources

clock-in practice. With a focus on employee care we send employees blessing emails and e-cards during festivals. Currently foreign and invites external experts to conduct lectures on such fields as safety management technology skills and career development

employees account for 87.5% of the overseas team demonstrating our diversified and internationalized recruitment strategy. including laws training exclusive training for female employees and business ethics training enhancing employees' comprehensive

quality and professionalism.

64 65HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

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We sort out the present state of talents understand their distribution and structure through the annual talent inventory report and

adopt the nine-grid classification approach to accurately evaluate the employees' performance and capacity. Based on the inventory GRI 403

results the company develops targeted training plans and promotion programs for all-round development and full utilization Occupational health

of talents with measures including providing more development opportunities and resources for star employees formulating

personalized career development plans for key employees and increasing attention and counseling for employees facing challenges.Regarding employees' occupational health and safety as the cornerstone of corporate Sustainability the company has

Steps to promote talent inventory completed a comprehensive safety management system. We implement the policy of "Safety Foremost Prevention

First and Comprehensive Treatment" to safeguard employees' life and health rights in the workplace; We establish the

Determination of Methodology of training Inventory initiated by Knowledge and practice Inventory of both cross-departmental Work Safety Management Committees and Work Safety Office covering the persons in charge of each

inventory approaches and inventory the department examination performance and capacity operation line and employee representatives to ensure the resource input for work safety management.All of our production bases have passed the ISO 45001 Occupational health and safety system certification and have been

awarded as a Level 2 or Level 3 standardized work safety enterprise.Results follow-up for Mapping talents Identifying talents with Talent classification and

dynamic management high potential to build a grading

succession talent pool

Performance in 2024

Compliance rate of industrial

The company conducted regular skill competitions and labor union activities encouraging employees to constantly improve their noise Chemical leakage incident Fire and explosion accident

skills and pursue excellence. Hongyuan New Material (Baotou) selected the position experts and presented generous bonuses

through the fierce competition in the "Hongyuan Gold Craftsmen" significantly boosting employee enthusiasm and initiative. 100 % 0 0

Coverage rate of medical Occupational health and

100 Serious injury or fatality incident examination and health records safety emergent incident Employees included in performance appraisals account for % of all employees

0100%0

Major and above work safety Workplace fatality incident due to Lost labor rate per 200000

Senior management Middle management General management General employees liability accident production-related accidents man hours

Total training Training hours Total training Training hours Total training Training hours Total training Training hours

hours per capita hours per capita hours per capita hours per capita 0 0 0.437

HY Solar 200 20 1228 68 820 48 11600 32

Hongyuan New

Material (Xuzhou) 0 0 220 10 2750 50 58413.6 50.4

Hongyuan

Energy (Baotou) 360 40 2400 40 4400 40 64800 60

Hongyuan New

Material (Baotou) 16 2.67 30 0.71 94 0.35 120 0.05

HY Solar (Wuxi) 2 1 462 22 1280 40 11812 13.61

Note: 1.Unit: hour for all.

2. Only basic foundation induction training is available for overseas with a coverage rate of 100%.

66 67HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

We constantly increase occupational health and safety education with a focus on such

We formulated the management measures and implementation rules covering safety training occupational health and safety key areas as laws & regulations safety operation procedures new employee orientation

examination purchase of safety equipment in strict accordance with the applicable laws and regulations to safeguard employees' emergency response plan and firefighting & special operations; adopt various

occupational health & safety and create a stable safety management environment for production. methods such as three-level safety education specialized type of work education and

recurrent safety education to ensure that employees receive comprehensive safety

knowledge and skills; and promptly organize qualification safety training & retraining

We provided full medical examination service including pre-employment in-service and exit medical examination to ensure practical operations and emergency drills to enhance employees' occupational health

employees' health. All costs for medical examination were covered by the company demonstrating our deep concern and significant awareness and capacity.attention to employees' health.Drill for workshop chemical leakage

Demonstrating the excellent safety management performance

During this year's Safety Month Hongyuan New Material (Xuzhou) organized a series of training and drills on occupational

health and safety surrounding the theme of "Everyone talks about safety and everyone knows emergency measures"

including comprehensive safety inspections special safety inspections emergency response drills safety knowledge

promotions quizzes and ERT team drills significantly enhancing employees' safety awareness and emergency handling Special training on accident analyses Training on EHS hazard identification Special safety training on environmental

capacity. and preventive measures factor identification

Special training on hidden danger Emergency drill for mechanical injury in Emergency drill for scald accident in

investigation and management post-treatment workshop quality inspection center

Special emergency drill for exhaust gas

workshop

Drill for treatment of poisoning Emergency drill for anti-electric shock in electrical workshop

suffocation and argon leakage in quality

inspection center

68 69HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Index Disclosure Location Omission

2-19 Remuneration policies Corporate governance

GRI content index 2-20 Process to determine remuneration Corporate governance

Confidentiality constraints

2-21 Annual total compensation ratio / personal information of employees

Statement of use HY Solar Co. Ltd. has reported in accordance with the GRI Standards for the period from 1

involved will not be disclosed temporarily.January 2024 to 31 December 2024. S战tr略at、eg政y策 po和li实cie践s and practices 战略、政策和实践

GRI 1 used GRI 1: Foundation 2021

2-22 Statement on sustainable development strategy About us

Applicable GRI Sector Standard(s) NA

2-23 Policy commitments Policy commitment

2-24 Embedding policy commitments Policy commitment

Disclosure Location Omission 2-25 Processes to remediate negative impacts Business ethics

GRI 2: General Disclosures 2021 2-26 Mechanisms for seeking advice and raising concerns Stakeholder engagement

The organization and its reporting practices

2-27 Compliance with laws and regulations Corporate governance

2-1 Organizational details About us

2-28 Membership associations About us

2-2 Entities included in the organization's sustainability reporting Report profile

Stakeholder engagement 利益相关方参与

2-3 Reporting period frequency and contact point Report profile

2-29 Approach to stakeholder engagement Stakeholder engagement

2-4 Restatements of information None

2-30 Collective bargaining agreements Employees' rights and benefits

2-5 External assurance Activities and workers Verification statement GRI 3: Material Topics 2021 GRI3：实质性议题2021

A活c动tiv和iti工es作 a者nd workers 活动和工作者

3-1 Process to determine material topics Sustainability management

2-6 Activities value chain and other business relationships About us

3-2 List of material topics Sustainability

2-7 Employees Humane

management

orientation GRI201：Economiic Performance2 2002211 GRI201：经济绩效2021

2-8 Workers who are not employees Humane orientation 3-3 Management of material topics Value creation

G管o治vernance 管治

201-1 Direct economic value generated and distributed Value creation

2-9 Governance structure and composition Corporate governance 201-2 Financial implications and other risks and opportunities due to

Corporate climate change

Climate change

2-10 Nomination and selection of the highest governance body governance 201-3 Defined benefit plan obligations and other retirement plans Employees' rights and benefits

2-11 Chair of the highest governance body Corporate governance 201-4 Financial assistance received from government See the annual

2-12 Role of the highest governance body in overseeing the Sustainability report

management of impacts management GRII 220022：: M市a场rk表et 现Pr2e0s1e6nce 2016 GRI202：市场表现2016

2-13 Delegation of responsibility for managing impacts Sustainability management 3-3 Management of material topics Value creation

2-14 Role of the highest governance body in sustainability reporting Report profile 202-1 Ratios of standard entry level wage by gender compared to

local minimum wage Value creation

2-15 Conflicts of interest Business ethics 202-2 Proportion of senior management hired from the local Information incomplete there are many

Stakeholder community

/ subsidiaries and accurate data cannot be

disclosed temporarily.

2-16 Communication of critical concerns engagement GRII 220033：: I间nd接ire经ct济 E影co响no2m01i6c Impacts 2016 GRI203：间接经济影响2016

2-17 Collective knowledge of the highest governance body Sustainability management 3-3 Management of material topics About us

2-18 Evaluation of the performance of the highest governance body Corporate governance

70 71HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

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Disclosure Location Omission Disclosure Location Omission

203-1 Infrastructure investments and services supported About us 302-4 Reduction of energy consumption Energy management

203-2 Significant indirect economic impacts About us 302-5 Reductions in energy requirements of products and services Energy management

GRI 204: Procurement Practtiicess 2016 GRI204：采购实践2016 GRI3 30033：: W水a资te源r a和nd污 E水ffl2u0e1n8ts 2018 GRI303：水资源和污水2018

3-3 Management of material topics Sustainable supply chain 3-3 Management of material topics Water management

204-1 Proportion of spending on local suppliers Sustainable supply chain 303-1 Interactions with water as a shared resource Water management

GRI2 20055：: A反nt腐i-c败o2rr0u1p6tion 2016 GRI205：反腐败2016 303-3 Management of water dischargerelated impacts Pollutant emission and waste management

3-3 Management of material topics Business ethics 303-3 Water withdrawal Water management

205-1 Operations assessed for risks related to corruption Business ethics 303-4 Water discharge Water management

205-2 Communication and training about anti-corruption

policies and procedures Business ethics 303-5 Water consumption Water management

205-3 Confirmed incidents of corruption and actions taken Business ethics GRI 304: Biodiversiity 2016 GRI304：生物多样性2016

GRIR 2I20066: ：An反ti-竞co争m行pe为ti2ti0v1e6 Behavior 2016 GRI206：反竞争行为2016 Not applicable all the development construction and site selection of the

3-3 Management of material topics / company's base projects are not in

3-3 Management of material topics Business ethics near or outside the natural resource reserve areas rich in biodiversity.

206-1 Legal actions for anti-competitive behavior

antitrust and monopoly practices Business ethics 304-1 Operational sites owned leased managed

in or adjacent to protected areas and areas of high Biodiversity

GRI2 20077：: T税ax务 22001199 GRI207：税务2019 biodiversity value outside protected areas

3-3 Management of material topics Corporate governance Not applicable all the development

304-2 Significant impacts of activitiesproducts and construction and site selection of the

services on biodiversity / company's base projects are not in 207-1 Approach to tax Corporate governance near or outside the natural resource reserve areas rich in biodiversity.

207-2 Tax governance control and risk management Corporate governance Not applicable all the development

construction and site selection of the

207-3 Stakeholder engagement and management of concerns 304-3 Habitats protected or restored / company's base projects are not in

related to tax Corporate governance near or outside the natural resource reserve areas rich in biodiversity.

4 Country-by-country reporting / Not applicable country reports are not available. Not applicable all the development

304-4 IUCN Red List species and national conservation construction and site selection of the / company's base projects are not in

GRII 301:: Materiialls 2016 GRI301：物料2016 list species with habitats in areas affected by operations near or outside the natural resource

reserve areas rich in biodiversity.

3-3 Management of material topics Product lifecycle management GGRRII3 30055：: E排m放is2si0o1n6s 2016 GRI305：排放2016

301-1 Materials used by weight or volume Product lifecycle management 3-3 Management of material topics Climate change

301-2 Recycled input materials used Product lifecycle management 305-1 Direct (Scope 1) GHG emissions Climate change

301-3 Reclaimed products and their packaging materials Product lifecycle management 305-2 Energy indirect (Scope 2) GHG emissions Climate change

Information unavailable data on other

GRII3 30022：: E能ne源rg2y0 126016 GRI302：能源2016 305-3 Other indirect (Scope 3) GHG emissions / indirect (Scope 3) GHG emissions have

not been collected.

3-3 Management of material topics Energy management 305-4 GHG emissions intensity Climate change

302-1 Energy consumption within the organization Energy management 305-5 Reduction of GHG emissions Climate change

302-2 Energy consumption outside of the organization / Information unavailable energy Not applicable the organization does consumption related to upstream and 305-6 Emissions of ozone-depleting substances (ODS) / not involve ozone depleting substances downstream categories and activities (ODS) emissions in its processes

has not been collected. products and services.

302-3 Energy intensity Energy management 305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and Pollutant emission and waste

other significant air emissions management

72 73HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

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Disclosure Location Omission Disclosure Location Omission

GRI3 30066：: W废a弃ste物 22002200 GRI4 40044：: T培ra训in与in教g a育nd20 E1d6ucation 2016

3-3 Management of material topics Pollutant emission and waste management 3-3 Management of material topics Talent cultivation

306-1 Waste generation and significant wasterelated impacts Pollutant emission and waste management 404-1 Average hours of training per year per employee Talent cultivation

306-2 Management of significant waste-related impact Pollutant emission and 404-2 Programs for upgrading employee skills and transition waste management assistance programs Talent cultivation

306-3 Waste generated Pollutant emission and 404-3 Percentage of employees receiving regular performance and waste management career development reviews Talent cultivation

306-4 Waste diverted from disposa Pollutant emission and waste management GRI4 40055：: D多iv元er化sit和y 平an等d 机Eq会ual Opportunity 2016 GRI405：多元化和平等机会

306-5 Waste directed to disposal Pollutant emission and waste management 3-3 Management of material topics

Employees' rights

and benefits

GRI3 30088：: S供up应p商lie环r E境n评vir估on2m01e6ntal Assessment 2016 Sustainable supply chain 405-1 Diversity of governance bodies and employees Employees' rights and benefits

Not applicable personal information of

3-3 Management of material topics Sustainable supply chain 405-2 Ratio of basic salary and remuneration of women to men / employees involved will not be disclosed

temporarily.

308-1 New suppliers that were screened using environmental

criteria Sustainable supply chain GRII4 40066：: N反o歧n-视dis2c0r1im6 ination 2016 GRI406：反歧视2016

308-2 Negative environmental impacts in the supply chain Employees' rights

and actions taken Sustainable supply chain 3-3 Management of material topics and benefits

GRI4 40011：: E雇m佣pl2o0y1m6ent 2016 406-1 Incidents of discrimination and corrective actions taken Employees' rights and benefits

3-3 Management of material topics /Employees' rights and benefits GRI4 40077：: F结re社ed自o由m 与of集 As体so谈c判iation and Collective Bargaining GRI407：结社自由与集体谈判

401-1 New employee hires and employee turnover Information unavailable the company did not count this information. 3-3 Management of material topics

Employees' rights

and benefits

401-2 Benefits provided to full-time employees that are not Employees' rights and 407-1 Operations and suppliers in which the right to freedom of Employees' rights

provided to temporary or part-time employee benefits association and collective bargaining may be at risk and benefits

401-3 Parental leave Employees' rights and benefits GRI4 40088：: C童h工ild2 L0a1b6or 2016 GRI408：童工2016

GRI4 40022：: L劳ab资o关r/M系a2n0a1g6ement Relations 2016 GRI402：劳资关系2016 3-3 Management of material topics Employees' rights and benefits

3-3 Management of material topics Occupational health 408-1 Operations and suppliers at significant risk for incidents of Employees' rights child labor and benefits

402-1 Minimum notice periods regarding operational changes / Not applicable this information is not involved. GRII4 40099：: F强or迫ce或d 强or制 C劳om动p2u0ls1o6ry Labor 2016 GRI409：强迫或强制劳动2016

GRI4 40033：: O职cc业u健pa康tio与n安al 全He2a0l1t8h and Safety 2018 GRI403：职业健康与安全2018 3-3 Management of material topics Employees' rights and benefits

3-3 Management of material topics Occupational health 409-1 Operations and suppliers at significant risk for incidents of Employees' rights forced or compulsory labor and benefits

403-1 Occupational health and safety management system Occupational health GRI4 41100：: S安ec保u实rit践y P2r0a1c6tices 2016 GRI410：安保实践2016

403-2 Hazard identification risk assessment and incident

investigation Occupational health 3-3 Management of material topics /

Information unavailable the company did

not count this information.

403-3 Occupational health services Occupational health 410-1 Security personnel trained in human rights policies or / Information unavailable the company did procedures not count this information.

403-4 Worker participation consultation and communication

on occupational health and safety Occupational health GRI4 41111：: R原ig住ht民s o权f 利Ind20ig1e6nous Peoples 2016 GRI411：原住民权利2016

403-5 Worker training on occupational health and safety Occupational health 3-3 Management of material topics / Not applicable the company did not count this information.

403-6 Promotion of worker health Occupational health 411-1 Incidents of violations involving rights of indigenousv peoples / Not applicable the company did not count this information.

403-7 Prevention and mitigation of occupational health and

safety impacts directly linked by business relationships Occupational health GRI4 41133：: L当oc地al社 C区om20m1u6nities 2016 GRI413：当地社区2016

403-8 Workers covered by an occupational health and safety Occupational health 3-3 Management of material topics Contributions to management system society

403-9 Work-related injuries Occupational health 413-1 Operations with local community engagement impact Contributions to assessments and development programs society

403-10 Work-related ill health Occupational health 413-2 Operations with significant actual and potential negative Not applicable all operating points do not impacts on local communities / involve an actual or potentially significant negative impact on the local community.

74 75HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Disclosure Location Omission Verification statement

GRII4 41144：: S供up应p商lie社r S会o评cia估l A20ss1e6ssment 2016

3-3 Management of material topics Sustainable supply chain

414-1 New suppliers that were screened using social criteria Sustainable supply chain

414-2 Negative social impacts in the supply chain and actions Sustainable

taken supply chain

GRI4 41155：: P公u共bli政c P策o2li0c1y6 2016 GRI415：公共政策2016

3-3 Management of material topics / Not applicable the countries where the company operates do not involve political donations.

415-1 Political contributions / Not applicable the countries where the company operates do not involve political donations.

GRI 416: Customer Heallth and Saffettyy 22001166 GRI416：客户健康与安全2016

3-3 Management of material topics Quality service

416-1 Assessment of the health and safety impacts of product

and service categories Quality service

416-2 Incidents of non-compliance concerning the health and

safety impacts of products and services Quality service

GRII4 41177：: M营a销rk与eti标ng识 a n20d1 L6abeling 2016 GRI417：营销与标识 2016

3-3 Management of material topics Quality service

417-1 Requirements for product and service information and

labeling Quality service

417-2 Incidents of non-compliance concerning product and

service information and labeling Quality service

417-3 Incidents of non-compliance concerning marketing

communications Quality service

GRI4 41188：: C客us户to隐m私er2 P01ri6vacy 2016 GRI418：客户隐私2016

3-3 Management of material topics Business ethics

418-1 Substantiated complaints concerning breaches of

customer privacy and losses of customer data Business ethics

IFRS industry-based index

Topic and metric

Topic Metric Unit Code 2024

Total energy consumption GJ 11321765.91

Energy

management Percentage of grid power % RR-ST-130a.1 99.61

Percentage of renewable electricity % 0.39

Water Total water withdrawal t RR-ST-140a.1 10080437

management Total water consumption t RR-ST-140a.2 5871043

Metric

Metric Unit Code 2024

Total capacity of photovoltaic (PV) solar modules produced MW RR-ST-000.A 4454.88

76 77HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

78 79HY Solar Co. Ltd. Introduction Chairman's Message About us Value creation Governance Low-carbon Humane orientation Index

2024 Environmental Social

and Governance Report

Report profile GRI 2-2 | GRI 2-3 | GRI 2-5 | GRI 2-5

Reporting basis

The HONGYUAN GREEN ENERGY CO. LTD. 2024 Environmental Social and Governance Report (hereinafter referred

to as the "Report" and the "ESG Report") of is the third ESG report of HY Solar Co. Ltd. which aims to present our In accordance

management methods practices and performance in the field of environmental social and governance to all

stakeholders fairly and objectively. Global Reporting Initiative GRI Sustainability Reporting Standards (2021)

Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange No. 1 - Standardized Operation

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

Unless otherwise specified the financial data in the report are in RMB. The report is published on an annual basis and

the last report was published in April 2024.With reference

Sustainability Accounting Standards Board (SASB) Sustainability Accounting Standards for Electrical and Electronic

Equipment Industries

IFRS S2 Industry-based Disclosure Requirements Volume 44 Solar Technology and Solution Developers

Task Force on Climate-Related Financial Disclosures (TCFD)

United Nations 2030 Sustainable Development Goals (UN SDGs 2030)

The Ten Principles of the United Nations Global Compact (UNGC 10 Principles)

Data source

The cases and data in the report are all from the original records or financial reports of the actual operation of the

company. Unless otherwise specified the currency types and amounts involved in this report are measured in RMB.Click on the cover to get the report

Confirmation and assurance

Time frame This report was approved by the Board of Directors on April 29 2025.This report has obtained the "limited guarantee" opinion issued by TüV SüD Certification and Testing (China) Co. Ltd.From January 1 2024 to December 31 2024 some information is slightly expanded. Please refer to the "Verification statement" for details.Organizational scope

Report acquisition

This report covers HY Solar Co. Ltd. and its subsidiaries. For ease of writing some entities will appear in the report with

abbreviations and their business types and referencing relationships are described as follows: This report is available in electronic PDF format at:

* Shanghai Stock Exchange website (www.sse.com.cn)

Business type Full name of the company Abbreviation * Company website（www.hysolar.com）

* HY Solar WeChat public account

Headquarter equipment HONGYUAN GREEN ENERGY CO. LTD. HY Solar the company we

Silicon Hongyuan Energy Technology (Baotou) Co. Ltd. Hongyuan Energy (Baotou)

Silicon wafer HOYUAN New Material (Baotou) Co. Ltd. Hongyuan New Material (Baotou) Contact Information

HY SOLAR Co. Ltd. HY SOLAR (Wuxi)

Module Address: 158 Nanhu Middle Road Binhu District Wuxi City Jiangsu Province

YuanTech Solar Co. Ltd. YuanTech Solar Contact number: 0510-85958787

Cell Hongyuan New Material (Xuzhou) Co. Ltd. Hongyuan New Material (Xuzhou) Contact email: pr@hysolar.com

80 81Introduction