Sustainability Performance HighlightsCONTENTS Sustainability Performance Highlights 04 Appendix 88

Chairman's Message 06 About This Report 88

About Us 08 Assurance Statement 90

Key Performance Table 93

Company Overview 08 Index Table of the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies 99

Honors and Recognitions 10 No. 14 – Sustainable Development Report (Trial)

External Engagements 11 GRI Sustainability Reporting Standards Index 100

Progress on the United Nations Sustainable Development Goals 12 SASB Industry Standards Index 108

(UN SDGs)

Stakeholder Engagement 14

Materiality Assessment 16

Governance Value Creation Environment People-Oriented

Policy and Commitments 22 Industry Contribution 36 Climate Change Response 58 Employee Rights and Interests 74

Corporate Governance 23 R&D Innovation 37 Environmental Compliance Management 61 Talent Development 78

Sustainability Management 25 Product Innovation 38 Energy Management 64 Occupational Health and Safety 82

Risk Management 28 Product Life Cycle Management 39 Water Resources Management 66 Community Public Welfare 86

Business Ethics 28 Quality Service 47 Pollutant Emission and Waste Management 67

Information Security 32 Green Manufacturing 51 Biodiversity 70

Responsible Supply Chain 53

20 34 56 72/ HONGYUAN Green Energy Co. Ltd. Sustainability Performance Highlights / 2025 Environmental Social and Governance Report

Sustainability Performance

Highlights

Economic & Governance

Anti-corruption Risk Inspection

Revenue: coverage of production bases: 138

new patents granted

RMB7425.49million 100% during the reporting

period.

100% No fines

of suppliers signed procurement contracts non-monetary sanctions or litigation

incorporating environmental labor human cases related to business ethics and

rights and anti-corruption clauses information security;

Environment

100%4

of major production bases certified to ISO 14001 Environmental certified Green Factories

Management System and ISO 50001 Energy Management System

Environmental investment: Recycled water volume: Renewable energy consumption ratio

RMB 44.1936million 150.5680million tonnes 45.28%

Social

100%

of major production bases certified to ISO 45001 HY Solar (Wuxi) certified to SA8000

Occupational Health and Safety Management System Management System

Zero incidents of discrimination harassment forced labor or child labor during the reporting period.

04 05/ HONGYUAN Green Energy Co. Ltd. Sustainability PerCfohramiramnacne 'Hs iMgheslisgahgtes / 2025 Environmental Social and Governance Report

Chairman's Message

The world today is at a pivotal stage in the in-depth advancement of the energy revolution. governance structure and ESG management system strengthened compliance operations and risk

As the global climate governance framework continues to improve the green and low-carbon control capabilities and enhanced the standardization and transparency of information disclosure

transition centered on clean energy is fundamentally reshaping the global energy landscape laying a solid foundation for the Company's long-term and steady development.and development trajectory. In this era-defining process energy enterprises not only shoulder

the critical mission of driving the transformation of energy systems and advancing technological Faced with cyclical industry adjustments and changes in the market environment we have always

progress but also assume an increasingly important responsibility in promoting green economic maintained strategic resolve and adhered to the philosophy of long-termism. On one hand we

and social development and addressing climate change. continued to pursue scientific and technological innovation and technological upgrading steadily

improving product performance and manufacturing efficiency accelerating the advancement

2025 marks the fourth consecutive year that HY Solar has published an ESG report. As an enterprise of intelligent manufacturing and lean management and continuously strengthening our core

deeply rooted in the clean energy industry we have always upheld the mission of "Making Energy competitiveness. On the other hand we actively expanded into new business areas such as energy

Cleaner Making the World Better" embedding the principles of sustainable development into storage accelerated the transition towards becoming a comprehensive energy solution provider

every aspect of corporate strategy and operational management. While driving the high-quality and continuously enhanced our industrial synergy capabilities and global competitiveness.development of the Company we actively respond to the pressing global agenda of low-carbon

transition and climate governance. HY Solar has always adhered to an open and cooperative attitude working hand-in-hand with

global customers partners and all sectors of society to jointly promote the progress of clean

Over the past year we continued to deepen the construction of our ESG management system energy technology and the construction of the industrial ecosystem. Looking ahead HY Solar will

and steadily enhance our sustainable development capabilities. In terms of the environment we continue to take innovation as its engine green development as its foundation and responsibility

persisted in advancing energy conservation consumption reduction and technological innovation as its cornerstone. We are resolute in pursuing a path of high-quality development — and in

increased the proportion of green electricity usage promoted international carbon footprint creating sustained corporate value while contributing HY Solar's strength towards building a

certification for products across the photovoltaic value chain and multiple subsidiaries were rated cleaner lower-carbon and more sustainable world.as "Zero-Carbon Factories" and "Green Factories" for consecutive years continuously reducing

the environmental impact of our production and operations. In terms of social responsibility Chairman of HY Solar

we remained committed to sharing development outcomes with society actively participated in

community building and public welfare initiatives and ensured that corporate development and Yang Jianliang

social progress move in tandem. In terms of governance we continuously improved our corporate

06 07/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

About Us

Company Overview

Hongyuan Green Energy Co. Ltd. (referred to as

HY Solar) founded in 2002 and headquartered

in Wuxi China has established itself as a global

leader in the green energy sector. The Company

was listed on the Main Board of the Shanghai

Stock Exchange in 2018 (stock code: 603185).As a comprehensive green energy innovation

group HY Solar focuses on two core business

segments: high-end equipment and full-industry-

chain photovoltaic (PV) products. Through

integrated industrial deployment and continuous

technological innovation the Company has built a

strong global competitive presence.With nearly RMB 30 billion in total assets the

Company has built multiple modern industrial

bases in key regions such as Inner Mongolia

Jiangsu and Anhui. It has established large-scale

production capacity across polysilicon wafers

cells and modules achieving a fully integrated

vertical supply chain in the photovoltaic sector.Recognized for its advanced industrial layout

robust technological capabilities and strong

commitment to sustainability HY Solar has been

repeatedly named among the Top 500 Chinese

Manufacturing Enterprises the Global New

Energy 500 and the Hurun China Top 100 Private

Energy Companies. The Company has also been

honored as a Forbes China Sustainable Innovation

Enterprise with its brand influence and industry

leadership ranking among the forefront of the

global green energy industry.Looking ahead HY Solar remains committed

to its development strategy of "Technology-

Driven HY Solar Intelligent Service Solutions"

and its corporate vision of "Making Energy

Cleaner Making the World Better." By driving

industrial upgrading through innovation and

expanding globally to connect the future HY

Solar is dedicated to building a world-class new

energy innovation group defined by technological

empowerment green leadership and intelligent

synergy - contributing to the global energy

transition and sustainable development.

08 09/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

Honors and Recognitions Hongyuan New Material (Xuzhou)

Jiangsu Province High-Tech Jiangsu Province Green Factory Jiangsu Province Five-Star

2025 ESG Ratings EcoVadis Commitment Medal Wind ESG Rating: A Huazheng ESG Rating: A Enterprise Cloud Enterprise

Jiangsu Province Private Jiangsu Province Intelligent

HY Solar (Group) Jiangsu Province Advanced-Science and Technology Level Smart Factory Manufacturing Demonstration

Enterprise Workshop

2025 H1 SMM 2024–2025 Forbes China 2025 China Green Power

Global PV Module Tier 1 Sustainable Innovation Consumption TOP 100

Enterprise Enterprise

HY Solar (Wuxi)

2025 Global New Energy CREC 2025 Top 10 Distributed SMM PV Cell Innovation

Enterprise 500 PV Module Enterprises Pioneer Award

SA8000 Management System Zero-Carbon Factory Four-Star CQC Five-Star After-Sales

Certification Certificate Service Certification

MIIT "Specialized and Global New Energy ESG 14th "North Star Cup" 2025

Sophisticated" Little Giant Top 100 Annual Influential PV Cell

Enterprise Brand Jiangsu Province Green Factory PVBL 2025 Global PV Brand Jiangsu Province High-Tech

Top 100 Enterprise

Wuxi 2024 Outstanding Jiangsu Province High-Tech

Contributor to High-Quality Enterprise

Development (Collective)

Management System Certification Coverage (Major Production Sites)1:

ISO 14001 ISO 45001 ISO 50001 ISO 9001

Hongyuan Energy (Baotou) 100% 100% 100% 100%

Baotou Green Factory Baotou Water-Saving Enterprise 2024 "Ankang Cup" Safety

Competition Outstanding Unit

External Engagements

National Technical Committee for Standardization of Semiconductor China Nonferrous Metals China Association for

Equipment and Materials – Materials Sub-Technical Committee Industry Association Science and Technology

Hongyuan New Material (Baotou)

China Photovoltaic Industry Wuxi Enterprise Wuxi Energy Industry Wuxi Xuelang Chamber PV CYCLE

Association (CPIA) Federation Association of Commerce

National- Inner Mongolia Inner Mongolia Inner Mongolia Top 50 Jiangyin Enterprise Science and Jiangsu Listed Companies

Level Green Autonomous Region Top 100 Private Private Manufacturing Technology Association Association

Factory Green Factory Enterprises Enterprises

1 Major production sites include HY Solar HY Energy(Baotou) Hongyuan New Material (Baotou) HY Solar (Wuxi) and Hongyuan

New Material (Xuzhou)

10 11/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

Progress on the United Nations Sustainable

Development Goals (UN SDGs)

Build distributed photovoltaic on plant rooftop

Participate in community donations to

help the underprivileged

Generate employment opportunities

with fair wage practices Strictly implement the occupational health and safety measures

File health records

Organize the Safety Month event Provide reliable efficient and eco-friendly solar products

Conduct large-scale employee

training

Insist on equal pay for equal work

Join PV CYCLE to build a PV recycling system

Strengthen supply chain responsibility management

Manage hiring and promotions on

the principle of equality

Conduct climate-related scenario analyses and

product carbon footprint certification

Create a "zero-carbon factory"

Manage and control wastewater

discharges from production processes

Explore measures for water resource Conduct regular integrity training and promotion

treatment and recycling Formulate a Supplier Code of Conduct

Establish a risk management mechanism

12 13/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

Stakeholder Group Key Issues of Concern Engagement Channels

Stakeholder Engagement Product quality and safety Offline exhibitions and conferences

Responsible supply chain Customer satisfaction surveys

In accordance with international standards and guidelines including the GRI Standards and the AA1000 Stakeholder Customer relationship management Official website and email

Customers & Consumers

Engagement Standard the Company has systematically identified and mapped its key stakeholder groups including Information security and privacy Information disclosure

employees customers and consumers shareholders and investors business partners government and regulatory

protection Survey questionnaires

authorities NGOs and media and local communities.Product lifecycle management

During the reporting period the Company continuously upgraded its internal communication platforms introduced and Business ethics

optimized digital collaboration tools including instant messaging systems MES systems and human resource management

systems enhancing the timeliness and transparency of information sharing. Regular meeting mechanisms were further Information security and privacy Business visits

strengthened to improve internal information flow and strategic alignment ensuring the effective implementation of protection

sustainability objectives. Regular supplier trainingResponsible supply chain

Business Partners Supplier audits

The Company is committed to building stakeholder relationships based on trust and transparency by establishing diverse Product lifecycle management Official website and email

communication and engagement channels and maintaining regular and ad-hoc exchanges with various stakeholder Occupational health and safety

groups. Each year through stakeholder survey questionnaires and other methods the Company systematically collects the Survey questionnaires

Employment and human rights

expectations and suggestions of stakeholders regarding its sustainability efforts identifies and integrates priority topics

and manages related risks and opportunities more effectively. Based on feedback the Company continuously improves its protection

management practices and discloses relevant progress through ESG reports and other channels. Corporate governance

In addition the Company regularly evaluates the effectiveness of its stakeholder engagement mechanisms continuously Business ethics Regulatory meetings

refines communication processes and tools enhances interaction quality and responsiveness and ensures that the Environmental compliance

concerns of all stakeholders are addressed in a timely comprehensive and ongoing manner. Government & Regulatory On-site inspectionsmanagement

Authorities Information disclosure

Employment and human rights

Survey questionnaires

protection

Stakeholder Group Key Issues of Concern Engagement Channels Climate change response

Employee activities Employment and human rights

Workers' Representative Congress protection

Training activities Scientific and technological innovation Offline exhibitions and conferences

Occupational health and safety Employee handbook Business ethics Seminars and roundtables

Employment and human rights HY Solar Voice platform Climate change response Media communications

Employees (incl. Trade Unions)

protection HR system NGOs & Media Environmental compliance Corporate publications

Talent development Notice boards management Press releases

Grievance mechanism (hotline and Energy management Information disclosure

email) Water resource management Survey questionnaires

Survey questionnaires Pollutant and waste management

General shareholders' meetings Biodiversity conservation

Investor communication platform Factory visit activities

Corporate governance

Investor exchange meetings Community relations and charitable Community volunteer activities

Shareholders & Other Investors Business ethics Local Communities (incl.Performance briefings initiatives Public welfare activities

Risk management Residents)

Information disclosure Pollutant and waste management Official website and email

Survey questionnaires Biodiversity conservation Survey questionnaires

14 15/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

Materiality Assessment

The Company conducts an annual materiality survey to identify significant sustainability risks opportunities and impacts

Impact Impact

through understanding sustainability trends topic screening stakeholder engagement double materiality analysis and Material Topic Materiality Type Primary Impact on Sustainable Development

expert consultation. The Company then improves its management around these topics and integrates the management of By substituting fossil energy with clean electricity generation

sustainability issues into broader business processes to enhance corporate resilience. Positive significantly reducing greenhouse gas emissions and advancing the low-Climate Change High carbon transition of the energy mix.Response

Negative Carbon emissions and indirect environmental impacts from the Company's own operations and value chain activities.Material Topic Screening Enhancing employee skills and innovation capacity providing human Talent Development High Positive capital support for renewable energy technology advancement and the

Company's long-term development.Through benchmarking against international standards and initiatives — including the GRI Sustainability Reporting Corporate Governance Medium Negative Inadequate governance mechanisms may lead to decision-making errors

Standards SASB Industry Standards and the UN Sustainable Development Goals (UN SDGs) — as well as through analysis or compliance risks affecting the Company's sound operations.of investment and rating institutions leading peer practices and the Company's value chain 19 material topics were Providing high-quality safe and reliable PV modules and energy

identified. Product Quality and

Positive products to ensure a stable energy supply.Safety High

Negative Product quality defects may trigger safety incidents and risks to customer trust.The Company's material topics for 2025 are consistent with those of 2024; certain topics have been revised in their Positive Driving suppliers to comply with environmental and social standards and

formulation to improve alignment with relevant standards. Responsible Supply High reducing environmental and human rights risks in the supply chain.Chain Negative Inadequate supply chain management may involve environmental harm from raw materials extraction or labour risks.Through module recycling and circular utilisation improving resource

2025 Material Topic 2024 Material Topic Change & Rationale

Product Lifecycle Positive efficiency and reducing the environmental footprint across the full life

Management Medium cycle.Investor Relations Revised wording; topics merged Negative Improper disposal of decommissioned modules may cause solid waste Corporate Governance into Corporate Governance and resource wastage.Tax Strategy

Business Ethics Medium Negative Improper business conduct may trigger legal risks and reputational

Employment & Human Rights Protection Employee Rights and Benefits Revised wording damage affecting fair competition in the industry.Scientific & Medium Positive Improving PV conversion efficiency and energy storage technology levels Talent Development Human Capital Development Revised wording Technological Innovation enhancing the competitiveness of clean energy.Climate Change Response Low-Carbon Operations Revised wording Energy Management High Negative Insufficient energy consumption control in manufacturing may increase operating costs and carbon emission intensity.Environmental Compliance Management Environmental Management System Revised wording Positive Strengthened safety management protects the lives and health of

Waste and Hazardous Substances Occupational Health and High employees and enhances corporate stability.Pollutant and Waste Management Management Revised wording Safety Negative Safety operation risks exist in product manufacturing and operations and maintenance which may lead to accidents.Positive Ensuring equal employment and protecting employee rights promoting Employment & Human long-term stability of both the Company and society.Rights Protection High

Materiality Assessment Negative

Inadequate management may lead to labour disputes or human rights

risks.Positive Strict adherence to environmental regulations helps reduce

The Company recognizes that its operating activities and business relationships may generate actual or potential impacts Environmental Compliance environmental risks and maintain stable company operations.Medium

on the external economy environment and society and that these impacts are equally relevant to its financial performance Management Negative Failure to meet regulatory requirements may result in project suspension risks and local environmental pollution.and long-term development. Accordingly the Company adopts a double materiality analysis approach conducting a

Risk Management Medium Negative Insufficient risk identification and control may affect product investment comprehensive assessment from both the impact materiality and financial materiality dimensions when prioritizing topics. returns and long-term strategy implementation.Pollutant and Waste High Negative Wastewater exhaust gases and solid waste generated during production In identifying material topics the Company invited representatives of various stakeholder groups and members of its Management and construction if poorly managed will impact the environment.governance bodies to participate in online questionnaire surveys and sought opinions from external experts on key topics Positive Improving customer satisfaction and long-term partnerships enhancing

and their contextual background in order to obtain professional advice on impact identification and management. On this Customer Relationship market competitiveness.Management Medium Untimely service responses or contractual fulfilment issues may damage

basis the final materiality matrix was formed and the priority of key topics such as climate change response was elevated Negative customer trust.based on assessment results. The outcomes were reviewed and confirmed by the Board of Directors before being disclosed Water Resource Medium Negative High water usage in module production and cleaning; inadequate

in this report. Management management may aggravate water resource pressures.Information Security & Medium Negative Data breaches or system attacks may affect operational security and

For impact assessment both actual and potential impacts are considered along with a distinction between positive Privacy Protection customer interests.and negative impact types. Through surveys and analysis conducted across a broad range of stakeholders the Company Community Relations & Promoting local economic and social development through community Philanthropy Medium Positive investment and public welfare projects.systematically mapped the key concerns of different groups and the potential impacts the Company may generate.In assessing negative impacts the Company considers impact severity (including scale scope and irreversibility) and Biodiversity Positive

Appropriate site selection and ecological restoration can promote

comprehensive land utilisation and ecological improvement.Medium

likelihood; in assessing positive impacts the focus is on impact severity (scale and scope) and likelihood. Based on the Conservation Negative Power station construction may occupy land resources and disturb local

composite scoring topics with higher scores on the impact dimension are classified as high-impact material topics. ecosystems.

16 17/ HONGYUAN Green Energy Co. Ltd. About Us / 2025 Environmental Social and Governance Report

Building on the analysis of the Company's impacts on the external economy environment and society the Company

Impact Materiality Matrix further assessed the financial implications of each material topic systematically conducting a double materiality analysis.Governance body members evaluated the "financial materiality" of relevant topics from dimensions including costs

8 revenues reputational impacts and potential risk exposure.

9

45

10 2 7 11 Assessment results indicate that climate change response talent development corporate governance product quality and

safety responsible supply chain and product lifecycle management are the six topics of highest financial materiality. These

topics may have significant implications for the Company's operating cost structure market competitiveness and brand

3 1 value and are closely associated with the Company's long-term profitability and strategic stability.

612

On this basis and in conjunction with the impact materiality analysis results the Company constructed a double materiality

matrix systematically identifying double material topics that have significant implications for both internal company

2 7 operations and external stakeholders providing a foundation for strategic decision-making and information disclosure.

6

143814

5 9 Materiality matrix10

12111516

13

114

9

Scale of impact (negative) Scale of impact (positive) 1

14210

6

165

19128

15

7

1. Product Quality and Safety 1. Responsible Supply Chain

2. Employment and Human Rights 2. Scientific and Technological Innovation

Protection 3. Product Lifecycle Management

3. Occupational Health and Safety 18 17 34. Customer Relationship Management 13

4. Pollutant and Waste Management 5. Product Quality and Safety

5. Environmental Compliance Management 6. Community Relations and Philanthropy

6. Water Resource Management 7. Employment and Human Rights

7. Energy Management Protection Impact on HY Solar's business development and finance

8. Biodiversity Conservation 8. Talent Development

9. Customer Relationship Management 9. Occupational Health and Safety

10. Climate Change Response 10. Environmental Compliance 1. Climate Change Response 7. Business Ethics 17. Information

11. Business Ethics Management 2. Talent Development 8. Scientific and Technological Security and Privacy Protection

12. Responsible Supply Chain 11. Climate Change Response 3. Corporate Governance Innovation

13. Information Security and Privacy 12. Biodiversity Conservation 4. Product Quality and 10. Occupational Health and Safety

18. Community

Relations and

Protection Safety 12. Environmental Compliance Philanthropy

14. Product Lifecycle Management 5. Responsible Supply Chain Management

15. Risk Management 6. Product Lifecycle 13. Risk Management

16. Corporate Governance Management 14. Pollutant and Waste Management

9. Energy Management 15. Customer Relationship Management

11. Employment and 16. Water Resource Management

Human Rights Protection 19. Biodiversity Conservation

1819

Low Materiality Topics

Medium Materiality Topics

High Materiality Topics

Impact on the environment and society

Positive Impacts

Probabilities

Negative Impacts/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Governance

Policy and Commitments 22

Corporate Governance 23

Sustainability Management 25

Risk Management 28

Business Ethics 28

Information Security 32

Independent Directors 43%

Female Directors 14%

Integrity Training Coverage 100%

Confirmed Business Ethics Violations 0

Anti-corruption Risk Inspection Coverage 100%

Information Security Training Coverage 100%

20 21/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Policy and Commitments Corporate Governance

The Company supports the Ten Principles of the UN Global Compact and integrates the concepts of human rights labor Corporate governance is a core topic of great concern to investors and capital markets. A sound and transparent governance

standards environmental protection and anti-corruption into its corporate governance and day-to-day operations. structure provides an institutional safeguard for enhancing corporate value and achieving long-term stable development.HY Solar strictly complies with relevant laws and regulations and stock exchange regulatory requirements establishing a

corporate governance system comprising the Shareholders' Meeting the Board of Directors and its specialized committees

UN Global Compact — Ten Principles and management forming a decision-making and oversight mechanism with clear responsibilities and effective checks and

balances continuously improving governance standards and effectively safeguarding the legitimate rights and interests of

investors.Human rights Principles Actions

Governance Structure

Principle 1: Businesses should support and Formulate the Employee Handbook and refrain from Shareholders' Meeting

respect the protection of internationally engaging in any acts that ignore or infringe upon

proclaimed human rights; and human rights

Principle 2: Make sure that they are not Board of Directors

complicit in human rights abuses.Strategy and Sustainability Audit Committee Remuneration and Committee Appraisal Committee Nomination CommitteeLabor Principles Actions

Principle 3: Businesses should uphold the Establish a diverse communication mechanism such Management

freedom of association and the effective as the Hongyuan Voice Platform Suggestion Boxes

recognition of the right to collective and Employee Symposiums

bargaining; Functional Departments Establish the Employee Representative Organization and Subsidiaries

Principle 4: The elimination of all forms of and Labor Laws Supervisory Committee

forced and compulsory labour; Implement rigorous age verification procedures

Principle 5: The effective abolition of child and use the Personnel Registration Form to confirm

labour; and personnel information

Principle 6: The elimination of discrimination Care for female employees and recruit disabled Strategy and Sustainability Committee

in respect of employment and occupation. employees

Primarily responsible for researching and making recommendations on the Company's long-term development

strategy major investment decisions sustainable development and ESG matters.Environment Principles Actions

Audit Committee

Principle 7: Businesses should support a GHG verification

precautionary approach to environmental Apply for product carbon footprint certification Primarily responsible for communication supervision and review of internal and external audits accountable to challenges; and reporting to the Board of Directors.Principle 8: Undertake initiatives to promote Build a zero-carbon factory

greater environmental responsibility; and Pave rooftop PV

Principle 9: Encourage the development Conduct energy conservation and technological Remuneration and Appraisal Committee

and diffusion of environmentally friendly improvement

technologies. Primarily responsible for establishing the performance evaluation criteria for directors and senior management and

Recover and recycle steam by condensation conducting evaluations; responsible for formulating and reviewing the remuneration policies and plans for directors

and senior management accountable to the Board of Directors.Anti-corruption Principles Actions

Nomination Committee

Principle 10: Businesses should work against Conduct risk and internal audits

corruption in all its forms including extortion Primarily responsible for selecting candidates and making recommendations on the selection criteria and

and bribery. Organize integrity series training procedures for directors and senior management reporting to and accountable to the Board of Directors.

22 23/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

The Company convenes and holds General Meetings of Shareholders in accordance with the Company Law Articles of

Association Rules of Procedure for General Meetings of Shareholders and other relevant requirements ensuring all

shareholders especially minority shareholders enjoy equal status and are able to fully exercise their rights. The Company Sustainability Management

actively communicates and interacts with investors values investor feedback and improves market value management. We

keep investors informed of business developments through multiple channels including the "Investor Relations" section of

our website earnings briefings shareholder meetings and SSE E-interaction.The Company standardizes information disclosure standards and fulfills its information disclosure obligations in accordance Sustainability Governance Structure of the

with the Administrative Measures for Information Disclosure by Listed Companies Information Disclosure Management

System and other relevant requirements strictly adhering to the principles of "fairness impartiality and openness" to Sustainability Committee

disclose company information truthfully accurately completely and in a timely manner thereby safeguarding investors' The Company continuously

right to know. upgrades its ESG governance structure and systematically HY Solar Board of Directors

reviews the organizational

78 4 48 600 framework of the Sustainability Over Strategy and Sustainability Committee Committee. The Board of

Announcements Results Briefing Sessions Online Investor Questions Investor Phone Directors as the highest decision-

Published Answered Communications making body reviews and

oversees the Company's ESG

ESG Decision-making

1 2 25 strategic planning and policy formulation. Senior management

Annual Shareholders' Extraordinary Resolutions Approved serves as the overall lead The Board of Directors the highest decision-making body

Meeting Shareholders' Meetings coordinating the implementation for ESG takes overall responsibilities in the formulation of

with clearly defined roles and

interface mechanisms across corporate ESG strategic planning policies and work plans Directors and Board members are elected in accordance with the Articles of Association Rules of Procedure of the Board and considers and approves ESG annual reports.of Directors and other institutional regulations faithfully fulfilling their fiduciary and diligent duties and performing their functional departments and

decision-making and oversight responsibilities in accordance with the law. Independent directors strictly fulfill their duties dedicated sustainability positions

in accordance with relevant laws and regulations express independent opinions on material matters and effectively have been established to facilitate

safeguard the overall interests of the Company and the legitimate rights and interests of minority shareholders. The current the management and execution Specialized Committee Specialized Specialized Committee

Board of Directors consists of 7 directors including 3 independent directors. The Chairman and senior management are of key matters. on Environmental Committee on Social on Corporate

remunerated on an annual salary system comprising a base salary and performance-based compensation linked to the Governance Responsibility Governance

Company's operational targets and individual performance. In terms of the oversight

mechanism a regular

In terms of director nomination and appointment the Company adheres to the principle of diversity comprehensively deliberation and reporting

considering factors such as gender age educational background and professional experience and optimizing the Board's system has been established.structure in line with the Company's development strategy and business needs. The current Board includes 1 female Third-party institutions are

ESG Coordinating

director with members' professional backgrounds spanning enterprise management marketing law finance and technical engaged as necessary for phased

manufacturing possessing rich industry experience and diverse professional capabilities to support the Board's sound and assessments of ESG performance

with continuous improvement Specialized Committees under the Strategy and Sustainability efficient decision-making.benchmarked against industry Committee develop the development goals in environment society

leaders. and governance responsibility and assist in resolving ESG-related

43% 2 14 matters. % In terms of capacity building

Independent Director Ratio Special Meetings of Independent Directors Female Director Ratio during the reporting period

members of the Company's Human Resources

General Manager Office EHS Department

10 100% 10 governance bodies participated Department in external training programs

Board Meetings Director Personal Attendance Rate Special Board Committee Meetings including risk management Securities Department Finance Department Legal Department

training for Jiangsu provincial

state-owned enterprises and

listed companies and a series

Tax Governance on high-quality development of listed companies continuously ESG Working Group

enhancing governance

The Company strictly complies with relevant national tax laws and regulations accurately calculates all taxes and fees files compliance and risk management It is composed of various departments of the corporate headquarter

and pays taxes on time mitigates tax risks and accepts inspections and supervision from tax authorities and other relevant capabilities. and is responsible for implementing Specialized Committees' objectives

departments in accordance with the law. We have formulated and continuously improved the Tax Management System and coordinating and promoting the implementation of ESG tasks preparing

newly formulated the Stamp Duty Management Standard setting specific requirements for tax policy research tax planning annual ESG reports and strengthening the influence of internal and external

formulation daily tax affairs management tax inspections and risk management. sustainable development of the Company.

24 25/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Sustainability Strategy Sustainability Risk Management

Centering on three development directions — environmental sustainability deepening social responsibility and improving The Company incorporates climate-related risks and other ESG risks into its overall risk management system and based

the governance system — the Company has incorporated climate change and sustainability issues into its medium- and on the results of the annual double materiality analysis focuses on high-impact and financially material topics such as

long-term strategic planning. "Climate Change Response" "Responsible Supply Chain" "Product Life Cycle Management" and "Employment and Human

Rights Protection."

During the reporting period the Company systematically collected stakeholder and investor recommendations through

multiple channels including industry forums in-depth client research strategic supplier dialogues public welfare partner At the institutional level the Company has established a dynamic risk map and graded response mechanism formulated

communications and regulatory interactions accumulating 12 valid feedback items focused primarily on: institutional documents such as the Business Ethics Code of Conduct and Due Diligence Procedures and the Internal Audit

Management Measures and defined full-process standards for risk identification assessment response and monitoring to

achieve closed-loop risk management.HY Solar (Wuxi) Sustainability Risk Management Practices

Optimized OA system Obtained

Environmental Social Governance Conducted 13 customer audits and 10 Implemented approval processes SA8000 Social bi-monthly on- to strengthen Accountability

Accelerating the green Focusing on rural Optimizing ESG information external system audits with a % pass rate site internal compliance Management

transition of the energy revitalization support disclosure mechanisms and 100 audits management System certification

structure expanding green improving occupational strengthening compliance

supply chain coverage and health protection standards and risk control systems.strengthening product lifecycle and enhancing public welfare

carbon footprint tracking and project transparency;

disclosure;

Through the above mechanisms the Company effectively identifies policy transition risks market competition risks supply

chain compliance risks and reputational risks while seizing growth opportunities arising from increasing demand for clean

energy.In response to these recommendations the Company established a closed-loop implementation mechanism formed

dedicated working groups incorporated core issues into the annual ESG plan disclosed public welfare project progress on

an annual basis and improved disclosure quality.Sustainability Targets

and Metrics

To drive the implementation of sustainability targets the

Company has established a performance-linked evaluation

mechanism incorporating sustainability tasks into departmental

KPI systems to reinforce accountability.The Company is currently continuously advancing energy

conservation consumption reduction and green manufacturing

practices across the Group establishing phased implementation

targets for green supply chain and carbon footprint disclosure.Going forward the Company will further refine the climate-

re l ate d m et r i c s f ra m e w o r k st re n g t h e n q u a n t i tat i v e

management and disclosure of greenhouse gas emissions

energy use efficiency and supply chain carbon management

data continuously improve information transparency and

strategic resilience and drive collaborative low-carbon transition

for both the enterprise and society.

26 27/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Risk Management Institutional Safeguards

In 2025 the Company newly formulated the Business Ethics Code of Conduct and Due Diligence Procedures supervised

As stakeholder expectations for corporate governance and responsible conduct continue to rise the Company fully by the Board of Directors and executed by management on a day-to-day basis. The Code applies to all employees of the

recognizes that systematic and forward-looking risk management is the critical foundation for ensuring sound operations Company and its subsidiaries and branches (including directors senior management temporary employees and interns)

and long-term value creation. The Company has established a comprehensive risk management system covering strategic and extends to suppliers agents consultants joint venture partners and other business partners. All employees must sign

operational and compliance dimensions incorporating environmental social and governance factors into its overall an Integrity Commitment Letter and an Information Security Confidentiality Agreement upon joining and regularly receive

risk framework. The Company's major production sites completed the SMETA 4-Pillar audit during the reporting period anti-corruption and compliance training.and have well-established management systems in place covering labor standards health and safety environment and

business ethics.The Board of Directors as the Company's highest risk governance body is responsible for planning and establishing

the risk management framework formulating risk management policies and relevant guidelines and overseeing the

implementation of all risk management measures. Risk management covers multiple areas including quality management

environmental protection work safety labor contracts and merger and acquisition investment ensuring the safety and

stability of key elements such as assets personnel production operations product quality the ecological environment

and corporate reputation. Under the authorization of the Board of Directors management is responsible for day-to-day Anti-Bribery and Anti-Fraud and

risk management with functional departments implementing specific control measures according to their respective Anti-Corruption Financial Integrity

responsibilities forming a top-down hierarchical risk management system.The Company's

Fair Competition due diligence risk

The Company continuously identifies potential legal market and operational risks through regular collection of Information Security and Anti-Unfair management

departmental feedback and convening of risk assessment meetings evaluating and categorizing them from the two and Data Protection

Competition focuses on seven

dimensions of severity and likelihood of occurrence. The Internal Control and Compliance Department conducts financial

key themes

audits internal control audits technical renovation project audits contract audits and special audits in accordance with the

annual audit plan. During the reporting period 29 internal audits were conducted covering risk areas such as procurement Conflict of Interest Human Rights and

fairness reclaimed water reuse occupational health and safety and business ethics. As of the end of the reporting period Management Labor Rights

all issues have been investigated and rectified achieving closed-loop risk management. In addition the Legal Department

has formulated the Legal Affairs Management System to regulate the Company's business conduct and regularly conducts

Environmental

legal knowledge training and contract review training to strengthen compliance risk prevention capabilities.Protection and Social

The Company has established an incentive mechanism to reward internal auditors who diligently fulfill their duties uphold Responsibility

principles and achieve significant results; employees who provide important case leads are commended and rewarded in

accordance with relevant policies reinforcing a culture of collective oversight.Through institutional development internal audits due diligence and training empowerment the Company continuously

enhances its risk identification and response capabilities deeply integrating risk management with corporate strategy

operational management and sustainability objectives providing institutional safeguards for the Company's long-term

stable development. The Company has formulated and implemented the Anti-Corruption and Anti-Bribery Control Procedures the Business

Ethics Sensitive Transaction Approval and Compliance Audit Management Procedures and the Anti-Unfair Competition

System covering conflict of interest management gifts and entertainment approval donation and sponsorship approval

contract management supplier management anti-unfair competition anti-fraud and anti-money laundering processes. In

addition all business clients suppliers service providers and contractors must sign the "Supplier Integrity and Compliance

Business Ethics Cooperation Commitment Letter" ensuring that external cooperation also meets The Company's business ethics requirements.The Company upholds the integrity philosophy of "addressing both symptoms and root causes prioritizing prevention and During the reporting period we did not incur any fines non-monetary penalties or major integrity/compliance violations

fostering company-wide supervision" embedding the core values of "integrity" and "pragmatism" throughout corporate due to non-compliance nor did we face any litigation related to unfair competition.governance and all business processes. The Company advances the construction of its business ethics system through three

dimensions — institutional safeguards culture building and whistleblowing mechanisms — to ensure legally compliant

operations and the implementation of high professional standards.

28 29/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Cultural Development Whistleblowing and Grievance Mechanism

Each year the Audit and Supervision Department conducts training for department heads and supervisors covering The Company has established an independent and diverse whistleblowing channel. In 2025 we updated the Whistleblowing

business ethics compliance integrity management systems and anti-unfair competition. The Procurement Department Acceptance and Investigation System to further improve the internal supervision and risk prevention mechanism

regularly disseminates the Company's integrity policies to suppliers. encouraging all employees and stakeholders to participate in corporate governance in accordance with laws and

regulations promptly preventing detecting and handling various violations fraud and dereliction of duty safeguarding

Through training and day-to-day management the Company reinforces compliance awareness among all employees the Company's asset security and legitimate rights and interests and maintaining an honest and fair corporate culture.promotes the embedding of a culture of integrity and accountability and establishes an education warning and deterrence

mechanism helping employees define clear boundaries in both mindset and behavior.Grievance Channels

Grievance Email: hongyuanjc@hysolar.com

Corporate Business Ethics Training

Grievance Hotline: 0510-85390590

Postal Reporting Address: No 158 Nanhuzhong Rd Binhu District Wuxi City Jiangsu Province

The training analyzes the core content of corporate business ethics from three aspects: legal basis common issues

and legal consequences and risk prevention and control covering high-frequency violations and typical cases such

as fraud bribery and infringement of trade secrets. Two sessions were held in 2025 with a total of 61 participants

primarily targeting supervisor-level and above employees. The training aims to embed business ethics standards Handling Procedure

into every aspect of business operations enhancing corporate reputation and strengthening stakeholder trust.The Internal Control and Investigations follow Confirmed violations are

Compliance Department principles of confidentiality handled in accordance

will register and conduct a impartiality and objectivity with the Employee

preliminary assessment within with the investigated party Reward and Punishment

2 business days of receiving a entitled to the right to make Regulations or

report; a statement; contractual terms.An independent investigation Investigation results are

Corporate Integrity Management Legal Practice Training team will be established with reported to management

major cases supervised by the and the Board of Directors'

In 2025 a special training was conducted for supervisor-level and above personnel explaining legal practices in Audit Committee; Audit Committee;

integrity management from both corporate and individual perspectives including regulatory background core

principles key regulations judicial cases and risk prevention solutions. A total of 86 supervisor-level and above

employees were covered helping build systematic integrity risk management capabilities.Whistleblower Protection and Incentives

The Company strictly protects the personal information of whistleblowers prohibits any form of retaliation

rewards verified whistleblowers who provide important leads and reserves the right to pursue legal action against

malicious false reports.In 2025 the Company received 8 reports related to business ethics and management violations. All were investigated and

resolved by the Audit and Supervision Department demonstrating the effectiveness of institutional enforcement and risk

prevention.

30 31/ HONGYUAN Green Energy Co. Ltd. Governance / 2025 Environmental Social and Governance Report

Information Security Ransomware emergency drills were conducted to verify the effectiveness of the Ransomware

Emergency Response Plan improve the coordination capabilities of the Emergency Response

HY Solar places great importance on information security and data protection incorporating information security into the Team (ERT) strengthen cybersecurity awareness among all employees and verify the Emergency

key aspects of corporate governance and business operations. Leveraging a comprehensive institutional framework clear reliability of the data backup and recovery processes for digital platforms.Drills

division of responsibilities ongoing training and emergency drills the Company safeguards the security of core business

systems employee and customer data and guards against potential cyber and information risks. Through the drills the Company identified and addressed cybersecurity vulnerabilities

including installing antivirus software backing up databases to off-site locations closing

external network ports regularly checking security logs and isolating suspicious files.Overall Coordination Information Security Committee (ISC)

Governance Information Security Working Group Hongyuan New Material (Baotou) has advanced the digital upgrade of visitor management

achieving a fully paperless process covering reservation registration entry and departure.Digital

Implementation Department Information Cybersecurity Functional Administrative Functional

Management Visitors' sensitive information (ID numbers and phone numbers) is encrypted for storage and

Security Person-in-Charge Department Department transmission; strict identity authentication and access control are enforced; all operations

and Security are logged to ensure data security and traceability.Technology

Information Security "Three Lines of Defense" In terms of network protection the Company guards against common attacks such as SQL

injection and XSS and closes unnecessary ports to reduce the risk of unauthorized access.In 2025 the Company updated and improved its information security management system with key policies including

the Information Security Management System Information Security Risk Management Procedures Electronic Document

Security System Management System Information Security Emergency Response Plan and the Information Security and

Privacy Protection Policy. In 2025 the Company did not

experience any customer data

These policies clearly define information security management responsibilities processes and content regulate data breaches or other information

storage transmission and access control and protect the Company's information assets and personal information. In security violations. At the same

accordance with mature industry security standards the Company takes legally compliant protective measures to ensure time the Company detected

that personal information of employees and customers (including electronic or other recorded information that can identify risks of unauthorized access

natural personnels) is protected lawfully and in compliance with regulations. information leakage and weak

passwords on some websites

The Company's Information Technology Department serves as the primary department responsible for information security and successfully prevented

management overseeing the full process of planning formulating and revising policies training execution supervision potential cybersecurity

and evaluation and improvement related to information security management and is also responsible for emergency incidents through closing

response to information security incidents. All departments and workshops are required to implement the policies external network mappings and

cooperate with inspections participate in training and emergency drills and ensure the effective implementation of the port management.policies. Information security incidents are classified and handled by type and severity level with a reward-and-penalty

system in place.The Company continuously enhances security awareness among all employees through training publicity and drills:

In 2025 a total of 12 information security-related training sessions were held covering

personal privacy protection and corporate data asset protection targeting supervisor-level

and above employees.Training

The online information security training push rate was 100% ensuring full employee

participation.

3233

Information Security Training

on Silver Fox Malware

Information Security and Anti-

Fraud Training/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Value

Creation

Industry Contribution 36

R&D Innovation 37

Product Innovation 38

Product Life Cycle Management 39

Quality Service 47

Green Manufacturing 51

Responsible Supply Chain 53

R&D Investment: RMB375.92 million

Total cumulative authorized patents reached 426 with

138 new patents added during the year

5 module product types obtained Product Carbon Footprint

Certification Certificates

100% of suppliers signed procurement contracts containing

environmental labor human rights and integrity clauses

34 35/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Industry Contribution R&D Innovation

In 2025 HY Solar continued to advance technological innovation and project delivery in the renewable energy sector

achieving significant progress. By the end of the reporting period the Company successfully delivered multiple projects R&D Capabilities

including several large-scale photovoltaic projects. Field measurement data shows that the new N-type module products

achieved approximately 2.5% to 3% higher power generation compared to traditional N-type module products fully

demonstrating the Company's technological strength in improving photovoltaic module efficiency. The Company invests a certain proportion of its annual operating income in R&D activities continuously introducing and

cultivating high-quality R&D talents and building a professional R&D team to ensure sustained technological leadership.At the same time the Company actively participated in renowned domestic and international photovoltaic exhibitions

comprehensively showcasing its full-chain photovoltaic products and energy storage business receiving high recognition

from clients at home and abroad demonstrating the Company's competitiveness and industry influence in the global

renewable energy market. During the reporting period

R&D investment reached RMB accounting for the R&D team has accounting for

375.92 million 5.1% 686 members 12.05%

of revenues of the total number of employees

By the end of the reporting period

the total number of cumulative authorized

with

Shanghai China SNEC 2025 International Wuxi China CREC 2025 China Jinan China China International Solar patents of the Company reached 138

Photovoltaic Power Generation and International New Energy Exhibition Energy Application Conference 2025 426 new patents added during the yearSmart Energy Conference & Exhibition

Industry-University-Research Cooperation

HY Solar actively carries out research cooperation with multiple well-known universities introducing new technologies

and resources accelerating the transformation and application of technological achievements and consolidating its own

Munich Germany Intersolar Europe S?o Paulo Brazil The Smarter E South Abu Dhabi UAE 18th World Future innovation capabilities.

2025 America 2025 Energy Summit (WFES)

Industry-University-Research Cases

Jointly applied with Jointly applied with Jointly applied with Jointly-developed with Nanjing

Zhejiang University: Lanzhou University: Key Lanzhou University: Institute of Technology:

Open Competition R&D and Achievement Science and N-Type TOPCon High-Efficiency

& Lead Undertaking Transformation Program Technology Plan Crystalline Silicon Solar Cell

Project – R&D of (Science and Technology Project Application Project.Its proprietary innovative

Large-Diameter Support for Ecological – R&D Project of technologies cover three-step

( ≥ 12") Magnetic- Protection and High-Quality Key Technologies boron diffusion doping source

Free Semiconductor Development of the Yellow for New-Generation feeding thick-film aluminium oxide

Amsterdam Netherlands Solar Lyon France BE POSITIVE 2025 Rimini Italy KEY ENERGY 2025 Monocrystalline River Basin) Project – R&D of High-Efficiency passivation and novel paste systems.Solutions 2025 Silicon Key Technologies for New- N-Type Low-Oxygen Relevant products have been

Generation High-Durability Monocrystalline successfully supplied to multiple top-

Graphite Electrode Columns2 Silicon tier industry customers

Through project delivery and exhibition showcases the Company not only continuously enhances its own technical

capabilities but also provides practical experience and model cases for industry development driving technological 2 The project is still in the approval process.advancement and market application in the renewable energy sector.

36 37/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Product Product Life Cycle Management

HY Solar places strong emphasis on the environmental impacts across the full lifecycle of its products and actively responds to

Innovation regulatory requirements for low-carbon product market access in different regions leveraging the inherent green advantages of the

photovoltaic industry. By integrating green and environmentally friendly principles into product design manufacturing packaging

transportation and end-of-life treatment the Company effectively reduces product-related environmental impacts lowers product

Equipment Silicon Wafer Cell and carbon footprints and contributes to the global green transition.Process Upgrades

Equipment Innovation Product Carbon

Independently developed large-size slicing Equipment Innovation

equipment for the semiconductor industry. Footprint Assessment

The 12-inch workpiece swing-type diamond

wire slicing machine fills the domestic gap in Amid the accelerating transition of the global photovoltaic

cutting materials such as silicon carbide and

ceramic rods. The 6~8 inch double-workpiece industry toward low-carbon development product carbon

plate simultaneous cutting diamond wire footprint has become a key indicator of a company's

slicing machine can cut two short Ingots at the sustainability capability and international competitiveness as

same time improving cutting efficiency. well as a critical entry requirement for high-standard markets

such as the European Union.Ultra-Thin Silicon Wafer Innovation HY Solar focuses on decarbonization potential across the

full product lifecycle. Using product carbon footprint as a

Through continuous optimization of thin

diamond wire cutting and low-stress precision baseline the Company continuously strengthens its carbon

control technology the Company took the Ultra-Thin Silicon Wafer Innovation management capabilities and improves its international

lead in realizing the preparation of 40μm ultra- carbon footprint compliance framework.thin silicon wafers building a solution system

covering full-size specifications balancing By integrating upstream and downstream segments of the

high fit light weight and flexible application

needs and continuously expanding new photovoltaic value chain the Company has established a

photovoltaic application scenarios. vertically integrated PV industry chain enabling raw material

traceability and lifecycle carbon emissions control. As of

the end of the reporting period the self-developed silicon

materials silicon wafers and cell products of the Company

Cell Innovation

have obtained the LCA full life cycle evaluation certificate

By optimizing processes such as screen awarded by the French Environment and Energy Control

printing texturing high square resistance

and dense grid design and introducing Agency (ADEME); the module end has successfully obtained the

efficiency-enhancing paste to improve ECS (Evaluation Carbone Simplifiée) French carbon footprint

current collection capacity the cell certificate issued by the authoritative French laboratory

conversion efficiency increased by more Cell Innovation Certisolis which is at the advanced level in the industry.than 0.2% in 2025. Based on the product carbon footprint results the Company

continuously explores the carbon reduction potential of each

link of the product improves the depth of data certification

Process Innovation and further optimizes the carbon footprint performance. During

Through measures such as rational use of the reporting period NT10-54(B)-188 NT10-60(B)-188 NT11-

internal space of the thermal field and adding 66GDF NT12-66GDF module products have obtained the ECS

thermal insulation materials the development French carbon footprint certificate; NT10/78GDF module has

of low-energy consumption thermal field was obtained the product carbon footprint certification certificate

realized which helps to significantly reduce

power consumption thereby reducing the issued by a domestic authoritative third-party institution. The

carbon footprint of the industrial chain and Company has also become a contributing unit to the national

extending the service life of equipment. standard "Greenhouse Gas – Product Carbon Footprint

Quantification Method and Requirements for Photovoltaic

Process Innovation Modules" supporting the development of industry carbon Carbon Footprint Certificate for Photovoltaic

assessment standards. Cell Products

38 39/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Product Development and Design Case Polyurethane Composite Frame Replacing Aluminum Frame Project

Under the policy trend in major global markets that clearly encourages

At the product development and design stage the Company implements source control and systematically reduces product decarbonization HY Solar (Wuxi) launched HT series bifacial double-

environmental impacts through design process control structural optimization and lightweighting raw material glass modules using polyurethane composite frames to replace traditional

sustainability and hazardous substance control. aluminum frames. The production process of traditional aluminum

profiles is energy-intensive and has high carbon emission intensity. The

carbon emission of aluminum frames is approximately 24.2 kg CO2/kg. In

Design process control comparison the carbon emission value of polyurethane composite frames is

3.7 kg CO2/kg which is only 15% of that of aluminum frames and the overall

The Company has established the Design and Development Control Procedure ensuring that EHS departments carbon emissions can be reduced by approximately 85%. Calculated based

participate in product development reviews. Environmental risk identification and regulatory compliance on unit module power a carbon reduction of approximately 110 g/W can Polyurethane Composite Frame

requirements are incorporated at the R&D stage to prevent environmental risks at the source. be achieved thereby realizing low-carbon performance across the product

lifecycle while ensuring structural strength and long-term reliability.Structural optimization and lightweighting

Case Reduction of Chemical Auxiliary Materials in Cell Production

The Company promotes easy disassembly and lightweight design avoids complex structures and enhances product

maintainability. During the reporting period HY Solar (Wuxi) optimized encapsulation film usage reducing density In photovoltaic cell production RCA cleaning texturing acid cleaning and alkaline polishing are key processes

by 30 g per cubic meter and lowering consumption of petroleum-based materials. to ensure cell efficiency during which multiple chemicals and additives are continuously consumed. To improve

material utilization efficiency and reduce environmental burden Hongyuan New Material (Xuzhou) carried out

targeted optimization projects. By introducing new process materials and adjusting process parameters while

Raw material recyclability and sustainability ensuring product quality significant reduction of chemical auxiliary materials at the source was achieved. During the

reporting period chemical consumption per 10000 cells decreased by 27.7 L and additive consumption per 10000

The Company promotes circular use of materials substitution of environmentally friendly materials and reduction cells decreased by 17.0 L.of chemical usage at the source.Raw Material Circular Utilization Hazardous Substance Compliance Control

The Company has formulated Management Specifications for the Utilization of P-type Recycled Silicon The Company incorporates standards such as

Feedstock Management Specifications for the Utilization of N-type Recycled Silicon Feedstock and Standards RoHS into its hazardous substance management

for the Recovery and Utilization of Seed Crystals to standardize the recovery and application of recycled silicon processes establishes strict material entry and control

feedstock throughout production processes.Hongyuan Energy(Baotou) selectively collects waste silicon powder mechanisms and prohibits the use of materials

and undersize silicon powder generated from manufacturing procedures and reuses such materials in the main containing toxic and hazardous substances thereby

production line of the synthesis workshop to achieve secondary resource utilization of silicon powder. Hongyuan reducing potential impacts on the environment and

New Materials(Baotou) introduces low-carbon silicon feedstock into silicon feedstock application and cleaning human health at the source.processes and promotes the application of recycled & recovered silicon feedstock.Eco-friendly Material Substitution

RoHS Certificates

For the selection of solar module frame materials HY Solar (Wuxi) adopts polyurethane frames with a lower

carbon footprint to replace traditional aluminium frames which significantly reduces the overall product

carbon footprint (PCF) of module products. Indicator Unit 2025 2024 2023

Total weight of materials used for production and packaging (non-

renewable materials) 83446.08 6466.10 3996

Total weight of materials used for production and packaging (renewable tonne 6109.27 25630.13 1682

Source Reduction of Chemicals materials)Percentage of recycled input materials used for production and packaging

3%224648

Focusing on core processes of solar cell manufacturing Hongyuan New Material (Baotou) carries out chemical (%)

and additive reduction projects which effectively lowers the demand for virgin silicon feedstock.

3 In 2025 the recycled input materials used for the production of the Company's main products and services consisted of

packaging materials and the value represents the average percentage of usage across HY Solar Hongyuan Energy (Baotou)

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

40 41/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Clean Production Case Distributed Photovoltaic Power Generation Project of HY Solar

The Company improves resource utilization efficiency and reduces greenhouse gas emissions through multiple measures

The photovoltaic power station

including energy management emission reduction initiatives resource recycling zero-carbon factory development supply

of HY Solar was completed and

chain management and product design optimization so as to reduce the negative environmental impacts arising from

put into operation in 2019 with a

its production and operations. In addition the Company continues to expand photovoltaic power generation projects

total installed capacity of 1 MW.and procure green electricity with a view to increasing the proportion of clean energy used. In 2025 the Company used

The project makes full use of idle

6033864.56 GJ of renewable energy.

rooftop space at the plant buildings

to provide clean electr ic ity for

production and operations. In 2025

Case Distributed Photovoltaic Power Generation Project of Hongyuan New Material (Baotou) the project is expected to generate

approximately 1.15 million kWh of

Hongyuan New Material (Baotou) installed a distributed electricity in total and reduce carbon

photovoltaic power generation project on the rooftops emissions by approximately 1146.55

of its plant buildings. Taking into account the specific tonnes.structural characteristics of cement roofs and color

steel tile roofs differentiated installation solutions were Photovoltaic Project of HY Solar

adopted to avoid roof-penetrating construction thereby

ensuring building structural safety and stable waterproof

performance. As of the end of the reporting period the

project had utilized a total rooftop area of approximately Case Green Power Trading and Renewable Energy Certificate Procurement Across Multiple Sites

95593 square meters with a total installed capacity of

23.43 MW and is expected to generate approximately

23.4203 million kWh of electricity annually. After the The Company actively promotes green transformation at the production end. Through green power trading and

project is put into operation it can effectively replace renewable energy certificate procurement it steadily increases the share of clean energy in its manufacturing

part of purchased electricity and increase the proportion processes enabling green electricity to run through the entire manufacturing process of silicon materials wafers Photovoltaic Project of Hongyuan New Material

of clean energy used. cells and modules. During the reporting period Hongyuan Energy (Baotou) purchased 665 green power certificates (Baotou)

corresponding to a total of 665 MWh effectively increasing its share of green electricity to 57%; Hongyuan New

Material (Baotou) purchased 951700 green certificates corresponding to a total of 951773 MWh. In the third

quarter of 2025 in the 2024 China Green Power (Green Certificate) Consumption TOP100 Enterprises List jointly

released under the leadership of the China Electricity Council HY Solar ranked 19th in terms of annual green power

Case 35 MW Distributed Photovoltaic Power Generation Project of HY Solar (Wuxi) consumption scale successfully joining the forefront of the industry and was awarded the title of "China Green

Power Consumption TOP100 Enterprise." This achievement demonstrates the Company's solid progress in green

In April 2025 the 35 MW rooftop distributed photovoltaic electricity use energy structure optimization and carbon reduction practices.power generation project of HY Solar (Wuxi) was

successfully connected to the grid. By adopting the

operating model of "self-generation for self-use with

surplus electricity fed into the grid" the project makes

full use of rooftop resources at the plant and installs

more than 50000 self-developed and self-manufactured

double-glass modules. According to estimates the

project is expected to generate approximately 35 million

kWh of electricity annually save about 11025 tonnes

of standard coal each year and reduce carbon dioxide

emissions by approximately 29120 tonnes. Since

being connected to the grid the project has generated

a cumulative total of 29492644.4 kWh of which

14116695 kWh has been used for self-consumption

effectively reducing the carbon emission intensity of 35 MW Distributed Photovoltaic Project of HY Solar

electricity used in production; the remaining electricity (Wuxi)

has been sold to the grid generating cumulative revenue "China Green Power Consumption Green Power Certificate Trading Voucher of Hongyuan Energy (Baotou)

of RMB 6076688.4. TOP100 Enterprise" ?

42 43/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Green Packaging Case Silicon Material Packaging Optimization Project at Hongyuan Energy (Baotou)

The Company continues to explore green packaging solutions by using recyclable degradable and lighter-weight packaging Hongyuan Energy (Baotou) promoted a packaging model combining

materials while optimizing product packaging methods. The Company has established a packaging material recycling "carton boxes + PE honeycomb panel boxes" taking into account both

system and designed recyclable packaging recovery plans to encourage relevant parties to participate in packaging material packaging protection performance and environmental friendliness.recycling activities. During the reporting period the amount of recycled packaging materials used by the Company reached For long-term cooperative customers and fixed logistics routes a

7541.86 tonnes. closed-loop process of recycling cleaning and reuse of PE honeycomb

panel boxes was established to replace single-use packaging thereby

reducing packaging material consumption.During the reporting period the recycling rates of the following major packaging materials of the Company were In 2025

the proportion of recyclable packaging materials used by Hongyuan

Wooden pallets EPE foam Energy (Baotou) reached 30%.

20.27% 15.91% A total of 11000 carton boxes were recycled throughout the year

with a recycling rate of 85%.The annual loss rate of honeycomb panel boxes was less than 5%

covering 60% of total product shipments. Polysilicon Packaging: "Carton Box + PE

Honeycomb Panel Box" Combination

Case Packaging Optimization Project for Solar Cells at Hongyuan New Material (Xuzhou)

In 2025 Hongyuan New Material (Xuzhou) Packaging bag

promoted the recycling and reuse of packaging Green Logistics

materials covering multiple types of packaging Hollow board Packaging bag

materials such as pallets liners and inner EPE foam Hollow board

boxes. For each type of packaging material In all stages of logistics and transportation we have taken the following specific Enhancement of localized Sulfur-free paper Sulfur-free paper

Hongyuan New Material (Xuzhou) formulated measures to improve overall logistics efficiency and effectively reduce related

procurement

corresponding recycling standards to ensure Cell Packaging Change Cell environmental impacts: Priority is given to suppliers within

that the recycled packaging materials meet the same province and surrounding Sulfur-free paper Sulfur-free paper areas to shorten transportation

the quality level required for reuse. During EPE foam Hollow board distances and reduce cross-regional

the reporting period Hongyuan New Material transportation demand. During

(Xuzhou) recycled a total of 145.41 tonnes Hollow board Packaging bag the reporting period the local procurement rate of materials such

of pallets 76.78 tonnes of liners and 241.54 Packaging bag Vehicle dispatching and Network and route as solder ribbons solder wires

tonnes of inner boxes. transportation optimization optimization and lamination frames at HY Solar

Based on daily shipment Based on the distribution of overseas

(Wuxi) reached 100%.volumes we scientifically business sites we continuously

schedule transportation vehicles optimize the layout of overseas

and optimize transportation warehouses; and convert part

plans by consolidating orders of land transportation to water Greening of

thereby improving loading rates transportation to reduce energy transportation tools consumption and carbon Intelligent warehousing per trip and maximizing space

utilization. emissions in cross-border

management

In employee commuting logistics.and material transportation By deploying a WMS (Warehouse

we use new energy shuttle Management System)

buses and forklifts to replace automation and intelligence

traditional gasoline and diesel of warehouse operations are

vehicles thereby reducing achieved improving the speed

fuel consumption and exhaust and accuracy of cargo

Pallet Liner? Inner Box emissions. handling.

44 45/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Product End-of-Life Disposal and Recycling Quality Service

Sustainable end-of-life product management is a key part of product lifecycle management and increasing attention is

being paid to it by regulators photovoltaic companies industry associations and other stakeholders. Photovoltaic products

have significant green attributes during the use phase and module materials themselves contain valuable components Product Quality

such as glass and silicon most of which can be recycled and reused forming a closed-loop system of resource utilization

and effectively reducing environmental pressure.HY Solar attaches importance to the recycling and reuse of products at the end of their lifecycle. While complying with the Product Quality Management

relevant laws and regulations of the countries where products are sold the Company continues to explore and promote HY Solar strictly complies with the product quality-related laws and regulations of each place of operation. Each base

recycling and reuse solutions for decommissioned photovoltaic modules. The Company strictly complies with the EU Waste formulates documents such as the Management Manual and Quality Management System according to its own actual

Electrical and Electronic Equipment Directive (WEEE Directive) and has registered as a WEEE member in Germany and production and operation conditions to establish a full-life cycle quality closed-loop management mechanism from supply

France committing to and ensuring that product disposal methods and recycling rates comply with WEEE requirements. As chain management to after-sales service proposes and tracks quality objectives and supervises the quality responsibility

of the end of 2025 the Company incurred disposal costs for approximately 100 tonnes of waste modules. In addition the of each production and service link. To ensure that quality requirements keep pace with the times we regularly revise

Company actively explores cooperation opportunities with external professional institutions. By becoming a member of the relevant quality management system documents.PV CYCLE association it ensures that its module products can be recycled and reused at the end of their service life thereby

completing the "last mile" of the green value chain of its products. By the end of the reporting period all production bases had obtained ISO 9001 Management System Certification and most

bases had obtained IEC 62941 Photovoltaic Module Quality Management System Certification; there were no product recalls

or administrative penalties related to quality.Product Strategy

Focusing on the goal of high-quality development HY Solar has established delivery quality and customer satisfaction as

important strategic pillars of quality management always taking product quality as the core orientation promoting the

in-depth development of the quality management system and continuously making it deeper more solid more detailed

and thorough. At the same time the Company actively promotes the construction of smart factories and informatization

introducing SAP material management system WMS warehouse management system MES manufacturing execution

system EAP equipment automation and SPC statistical process control system realizing the full-process automation and

informatization closed loop from raw material warehousing to finished product delivery providing strong support for the

delivery of high-quality products and enhancing the market competitiveness of products.Risk Management

The Company has established a quality management system covering the entire industrial chain implementing a full-

process control mechanism from design and development raw material quality control production process control to

finished product reliability testing to ensure that each link is under quality control and quality objectives are achieved.WEEE Registration Certificates

Total Industrial Chain Quality Management

Equipment Polysilicon Silicon Wafer Solar Cell PV Module

46 47/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Customer Service

Full-Process Quality Control

HY Solar continuously improves the customer service system and constantly improves customer satisfaction by optimizing

service processes and response mechanisms. Relying on the Customer Service Management Procedure the Company

standardized the management of key links such as factory audit reception inspection management and customer

complaint handling to ensure timely response and closed-loop rectification of problems. At the same time it regularly

invites customers to conduct satisfaction evaluations on product quality service quality price and delivery performance

conducts in-depth communication and exchanges with customers proactively identifies potential improvement spaces

Design & Raw Material Storage & Equipment Inspection & Non-conforming

Development Procurement Transportation Operation Testing Product Disposal actively adopts reasonable suggestions and continuously improves the overall service level and brand image.Product Quality Assurance Measures

Customer Satisfaction

Improvement Measures Deepen Market Research

Mechanism

Special Inspection and Promotion of Improvement Product Testing and Verification

Reporting Projects We have built the HY Solar R&D Continuously carry out customer

Regularly conduct special Continuously promote Testing Center equipped with

visits and market research

systematically collect customer

inspections on raw materials and technological transformation internationally advanced testing needs and feedback and timely

auxiliary materials production projects to optimize materials equipment and laboratory grasp industry trends and changes in

processes product quality and production processes equipment management systems. By the Strengthen Quality Management and Service customer expectations.on-site management track the configuration etc. During the end of the reporting period the Guarantee

achievement of quality indicators reporting period the Company laboratory has obtained the China

form inspection result reports and each production base National Accreditation Service for Strictly implement full-process

and report and discuss them implemented a total of 657 Conformity Assessment (CNAS) quality control continuously

through weekly and monthly improvement projects effectively Laboratory Accreditation Certificate improve product performance and

quality meetings promptly inform improving production efficiency and its testing capabilities have

and improve non-conformities to product consistency and delivery been externally authorized and Promote Continuous

service response capabilities and

ensure stable delivery and reliable

ensure product quality. quality. recognized. Product Innovation operation.Focus on the needs of high

efficiency reliability and scenario

adaptation accelerate R&D

and product iteration and

Training of Quality Personnel Unqualified Product Control Internal and External Audit enhance market competitiveness

Conduct training and post skill In accordance with the Supervision and customer value creation

examinations for relevant quality Unqualified Product Control Formulate an annual audit capabilities. Optimize Customer Full-

personnel hold skill competitions Procedure identify isolate plan internally to evaluate the Process Experience

from time to time and organize review and dispose of unqualified compliance and effectiveness of Improve the system for pre-sales

participation in employee skill products to ensure that the quality management system consultation in-sales support

competitions to continuously problematic products do not enter and actively seek improvement and after-sales service improve

improve the skills of quality the production or delivery link opportunities for the identified communication efficiency and

personnel from knowledge to and at the same time promote deficiencies. At the same time Strengthen the problem-solving capabilities and

practice. During the reporting cause analysis and improvement accept audits from external third- Construction of Customer enhance the overall customer

period Hongyuan New Material to improve the overall product party audit institutions and Service Professional cooperation experience.

(Baotou) held the 4th "HY Solar quality. customers with a 100% audit Capabilities

Golden Craftsman" Lean Production pass rate.Skill Competition to commend and Regularly carry out product knowledge and

encourage outstanding production technical application training to improve

personnel to continuously improve the professional quality and problem-

their skills. During the reporting solving capabilities of customer service

personnel and enhance the

period the Company and each accuracy and professionalism

production base carried out a total of service responses.of 416 quality training sessions. HY Solar (Wuxi) Products After-Sales

Service Certification

48 49/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Customer Complaint Handling

Green Manufacturing

We attach importance to long-term communication with customers and have established an efficient customer complaint

handling mechanism. Customers can make complaints or feedback problems through the service hotline (0510 - 85951888) HY Solar has always integrated green and low-carbon concept into the entire manufacturing process. Focusing on the

WeChat official account (HY Solar) official website (hysolar.com) and email (hongyuanjc@hysolar.com). During the national industrialization upgrading and the "dual carbon" strategy it actively promotes the coordinated development of

reporting period the customer complaint handling rate was 100%. intelligent manufacturing and low-carbon practices. Through innovative initiatives such as introducing industry-leading

equipment building highly automated and digital production lines practicing the efficient use of resources and energy

and promoting green supply chain collaboration it enhances the hard power of green intelligent manufacturing. During

the reporting period the total capacity of our photovoltaic modules reached 4298.90 MW and the total capacity of the built

solar energy system reached 2 MW.Case HY Solar (Wuxi) Was Rated as a Provincial "Green Factory" and Passed Voluntary Clean Production Acceptance

The HY Solar (Wuxi) module intelligent manufacturing base has carried out systematic layout around green

Remediation and

Complaint handling Failure analysis prevention manufacturing including setting up a special team to promote infrastructure optimization energy management

improvement clean production implementation and green supply chain construction and has achieved a number

of results such as energy management system certification greenhouse gas verification product carbon footprint

Aim to contact clients within 24 Adopt an 8D Analysis approach Perform permanent evaluation and zero-carbon factory evaluation. In November 2025 HY Solar (Wuxi) was selected into the "2025

hours for initial feedback and to determine and analyze and improvement with client Jiangsu Provincial Green Factory Shortlist" and rated as a "Jiangsu Provincial Green Factory" reflecting the

conduct prior consultation on set up a cross-department accreditation and constantly continuous recognition of the base in green production. In addition relying on its practices and achievements

resolution deadlines and non- special task force to analyze track product quality in energy conservation carbon reduction pollution reduction and efficiency improvement HY Solar (Wuxi)

remedial preventive measures investigate and deal with the management & control to successfully passed the 2025 voluntary clean production audit and acceptance after strict review and on-site

case prevent recurrence inspection becoming one of the model units promoting industrial green transformation.Responsible Marketing

HY Solar continuously deepens the concept of responsible marketing builds a clear and stable brand recognition system

and embeds compliance and integrity throughout the entire marketing promotion process. The Company strictly complies

with the Advertising Law of the People's Republic of China and internal systems such as the Responsible Marketing and

Consumer Protection Policy standardizes the production and use of various promotional materials and effectively

protects customers' right to know and right of choice. We provide multi-lingual and detailed product manuals and

technical materials to ensure the delivery of true accurate and complete product information providing customers with a

transparent and reliable product and service experience; standardize the provision of MSDS and product label information

for silicon wafers and cells ensure the completeness and compliance of chemical instructions and protect customers'

rights to know and of safe use. At the same time the Company standardizes the management of trademark use advertising

placement and market communication behavior by signing authorization letters with distributors and strengthens channel

compliance constraints. During the reporting period there were no violations involving marketing communication product

and service information and labeling.HY Solar (Wuxi) Production Base

50 51/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

Case Hongyuan New Material (Xuzhou) Was Rated as a Provincial "Advanced-Level Smart Responsible Supply ChainFactory" and "Green Factory"

Hongyuan New Material (Xuzhou) battery intelligent manufacturing base The Company adheres to the concept of sustainable development incorporates the environmental social and governance

promotes intelligent manufacturing and green production in a coordinated (ESG) responsibilities of the supply chain into the Company strategic management and ensures the compliance

manner. In terms of intelligent manufacturing Hongyuan New Material (Xuzhou) transparency and sustainability of the supply chain through a systematic and full-process supplier management and

has built a unified digital management and control platform through digital supervision mechanism.integrated management and control of production processes warehousing

and logistics equipment operation and product quality realizing full-

process collaborative management and intelligent analysis of production

warehousing equipment quality and energy and environmental safety. For

the production link AOI intelligent detection cameras are deployed at key HY Solar Supplier Code of Conduct

nodes of each production line to realize high-precision fully automatic and Hongyuan New Material (Xuzhou)

online detection of surface defects of cells and the detection efficiency can Battery Production Base

be increased by 500% compared with manual detection; RFID and industrial Human Rights and Fair Environmental

Internet identification resolution are applied to build a "single-chip level" Business EthicsWorking Conditions Protection

traceability system from raw materials warehousing products to operation

and maintenance. With these innovative practices in June 2025 the base won Oppose forced labor and child Comply with environmental laws Anti-corruption and commercial

the title of "2025 Jiangsu Provincial Advanced-Level Smart Factory". labor anti-discrimination and regulations environmental bribery anti-money laundering and

occupational health and management compliance terrorist financing data protection and

In terms of green intelligent manufacturing the base has established a sound safety working hours and use of natural resources and security fair competition and anti-

institutional system and organizational structure in accordance with the wage requirements freedom air pollution climate change monopoly conflict of interest tangible

General Principles for Green Factory Evaluation (GB/T3613-2018) formulated of association and collective and greenhouse gas emission property and intellectual property

the Medium and Long-Term Plan for Green Factories and realized real-time bargaining rights. reduction waste wastewater rights export control and economic

monitoring and refined management of energy consumption through the and hazardous substance sanctions grievance mechanism and

intelligent energy management platform. Combined with technologies such management conflict minerals. anti-retaliation measures product

as waste heat utilization and frequency conversion transformation it has built quality and safety.an efficient clean and low-carbon energy system; planned and built a rooftop

distributed photovoltaic power station and energy storage system; integrated Hongyuan New Material

ecological design into the entire product life cycle carried out carbon footprint (Xuzhou)'s Jiangsu Province

accounting in accordance with international standards and achieved 100%

comprehensive greenization rate of raw materials through lightweight design Green Factory' Certificate

and environmentally friendly material substitution; established a supplier Supply Chain Governance

environmental access mechanism incorporated indicators such as energy

conservation low carbon and environmental protection into procurement

decisions and promoted green supply chain construction; systematically The Company's Strategy and Sustainability Committee is the highest leading and supervisory body for supply chain

carried out carbon emission control relying on the ISO 14064 greenhouse gas policies responsible for approving strategic directions supervising implementation progress and regularly listening to

management system. In November 2025 Hongyuan New Material (Xuzhou) was work reports. The procurement department of each production base as the implementation subjects coordinates with

rated as a Jiangsu Provincial "Green Factory" reflecting its solid progress in business departments to integrate sustainable procurement and supply chain due diligence management requirements

green transformation. into the full-process business operations to achieve closed-loop management. We have formulated procedural documents

such as the Supplier and Contractor Management System Supplier Procurement Management Specifications Procurement

Management Control Procedures Supplier Management Procedures Supplier Audit Evaluation Form Safety and

Case Environmental Protection Commitment Letter and Legal Employment Commitment Letter covering the full-life cycle Hongyuan Energy (Baotou) Won the Municipal "Green Factory" Title management of the supply chain.Hongyuan Energy (Baotou) promoted the construction

of the energy management system systematically 1 Introduction and Commitmentimplemented energy conservation carbon reduction

and water-saving production practices and effectively

improved production quality and efficiency and reduced All suppliers must sign the Supplier Integrity and Compliance Cooperation Commitment Letter and Integrity

energy and resource consumption by focusing on green and Confidentiality Commitment Letter before cooperation committing to abiding by the Company's business

manufacturing. In May 2025 Hongyuan Energy (Baotou) ethics and sustainable development standards.was successfully selected into the "2025 Baotou Municipal

Green Manufacturing Demonstration Unit" and rated The Company gives priority to selecting partners with good ESG performance and embeds environmental

as a "Baotou Municipal Green Factory" marking that

its phased achievements in green manufacturing and labor human rights and integrity clauses into procurement contracts with 100% coverage of suppliers.sustainable operation have been officially recognized.On the premise of meeting internal procurement needs we give priority to carrying out localized procurement

Hongyuan Energy (Baotou) Energy Production Base growing together with local suppliers reducing transportation cycles and reducing environmental impact.

52 53/ HONGYUAN Green Energy Co. Ltd. Value Creation / 2025 Environmental Social and Governance Report

2 Due Diligence 3 Risk Assessment and Classification HY Solar commits not to use or sell any conflict minerals or derived products and also requires suppliers to take active

measures to avoid the use of any conflict minerals in products. All mineral materials used by our self-operated mineral

The business department initiates the Due Diligence The Risk Scorecard is used to quantify the risk of processing base come from domestic mineral resource intensive smelters with clear origins and compliant governance and

Application Form which is approved by the department partners and suppliers are divided into Grade A there is no behavior of violating human rights. In addition the Company has carried out sustainable procurement training

head Internal Control and Compliance Department and (low risk) Grade B (medium risk) Grade C (high risk) for all procurement personnel every year to improve the supply chain management capabilities of internal responsible

Finance Department before implementation. and Grade D (non-compliant) and differentiated persons.procurement strategies are formulated.A due diligence team is set up according to the scale of

cooperation and risk level and external experts or third- High-risk suppliers shall rectify non-compliance seek Board

party institutions can be invited to participate in major approval. Any serious violation of laws and regulations will

cooperation. result in automatic disqualification cone-vote veto. Supply Chain Risk Management

The investigation content covers legal compliance Supply chain risk identification and management are closely combined with the Company's double materiality analysis and

financial health business ethics environmental materiality assessment results including:

compliance labor rights and interests information Incentive Mechanism

security and operational capabilities. 5

Business Ethics and

The supplier's social responsibility score is closely Compliance Risks Operational Risks Social and Information Security

linked to procurement decisions. Grade A suppliers Environmental Risks Risks

enjoy order inclination financial preferential treatment

4 Continuous Monitoring and Exit Mechanism and brand empowerment; Grade B suppliers need to

formulate improvement action plans Grade C suppliers Anti-bribery anti-corruption Evaluation of suppliers' Carbon emissions Data protection conflict

Establish supplier files dynamically monitor ESG are subject to restricted procurement and strengthened

anti-unfair competition production capacity environmental permits of interest business

super vision; Grade D suppliers are immediately and compliance with quality control and safe labor rights and interests integrityperformance and legal risks conduct regular reviews of

suspended from cooperation and can resume environmental and labor laws production capacity occupational health and key suppliers and re-sign commitment letters.cooperation after passing rectification. and regulations safety performance

Those who have major v iolat ions data leaks

environmental accidents or safety hazards and refuse to The incentive mechanism encourages green innovation

rectify will be immediately terminated from cooperation carbon management and clean production guiding the The Company's Internal Control and Compliance Department continuously monitors supplier compliance files conducts

and included in the blacklist and will not be re-enabled overall improvement of ESG performance of the supply

chain. annual regular audits and unannounced inspections on high-risk suppliers dynamically identifies risks and triggers re-within 5 years. evaluation. Risk events include reports of violations sanctions or blacklist events major accidents changes in equity and

business structure ensuring the timely implementation of intervention and exit mechanisms.Supply Chain Strategy Supply Chain Indicators and Targets

HY Solar incorporates quantitative targets for sustainable supply chain development into the performance management

The ESG performance of suppliers is the core pillar for HY Solar to achieve the goal of "carbon-neutral supply chain". system.Building a responsible supply chain not only meets compliance requirements but also cultivates green partners with long-

term strategic value and jointly builds a leading responsible supply chain system in the photovoltaic industry. Through the By 2030

Supplier Code of Conduct and sustainable procurement policies the Company embeds ESG standards into supply chain By the end of 2027

management decisions. The environmental management

By 2023 system occupational health and

Sustainable procurement safety management system and

standards will be incorporated into quality management system of key

All new suppliers will complete the performance evaluation system suppliers will be fully covered.Build a traceable supply chain Strengthen the green Conduct market Regularly hold supplier sustainable procurement training. of suppliers and procurement

platform to realize full-life cycle transformation research before training forums and personnel. All suppliers will sign the Supplier

visual management of supplier of the supply selecting suppliers seminars to convey the Code of Conduct and affiliated

information contract performance chain promote and implement Company's expectations documents and complete

and training records.*Build a the application of hierarchical and in environmental sustainable procurement training.traceable supply chain platform recyclable packaging classified management social and governance

to realize full-life cycle visual low-carbon materials according to supplier aspects and promote

management of supplier and environmentally quality management the coordinated

information contract performance friendly processes. capabilities and ESG development of the Supplier evaluation adopts a quantitative scoring system comprehensively determining the supplier level through high-

and training records. performance. industrial chain. risk (45% weight) medium-risk (20%) and low-risk (5%) indicators and implementing incentive or rectification measures

accordingly to ensure the overall sustainability compliance of the supply chain and the Company's brand reputation.

54 55/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Environment

Climate Change Response 58

Environmental Compliance Management 61

Energy Management 64

Water Resources Management 66

Pollutant Emission and Waste Management 67

Biodiversity 70

Environmental Protection Investment: RMB 44193600

Renewable Energy Consumption: 6033864.56 GJ

Recycled Water Volume: 150568032.76 tonnes

Energy Efficiency Optimization Projects Implemented: 18 Projects

Water-saving and Water Recycling Projects implemented: 2 Projects

Air Pollutant Emissions Compliance Rate:100%

Wastewater Discharge Compliance Rate:100%

Environmental Non-compliance Incidents:0 cases

Share of Renewable Energy Consumption: 45.28%

56 57/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Climate Change Response

Hongyuan New Material (Baotou) has already taken the lead in comprehensively identifying climate risk categories conducting

HY Solar consistently upholds its vision of "making energy cleaner Making the world better" actively advancing sustainable impact assessments and formulating response measures laying a solid foundation for the development of the Company's

development through the deep application of green energy and innovative practices. overall climate risk management system.Against the backdrop of increasingly severe global climate change photovoltaic enterprises— key pillars of the renewable

energy sector— are facing unprecedented challenges and opportunities. As a dedicated industry player HY Solar fully

recognizes the impacts of climate change on the ecological environment as well as economic and social systems. To

address this global issue in a scientific and systematic manner the Company guided by the recommendations of the Task Climate-related Impact Risk and Opportunity Management

Force on Climate-related Financial Disclosures and in alignment with the climate-related disclosure requirements under

the Shanghai Stock Exchange's Self-Regulatory Guidelines No. 14 for Listed Companies – Sustainability Reports (Trial) Risk Type Impact Analysis Countermeasures

is exploring the establishment of a climate management framework across four dimensions: governance strategy risk

management and metrics & targets. This framework aims to continuously monitor and assess climate-related risks and Acute Extreme weather · May cause failure operational interruption and · Formulate emergency plans strengthen

opportunities implement proactive response measures and drive low-carbon transformation across both the Company Physical cyclones/ damage to production equipment reduce production emergency monitoring release information in a

and its value chain. Risk hurricanes/ efficiency increase maintenance costs and damage timely manner and conduct emergency drills.typhoons products. · Select more robust raw materials carry out

extreme high · In extreme cases power outages may occur and regular inspection and maintenance strengthen

temperature even plant damage may occur threatening the life inspection of external power facilities and

Climate Governance abnormal rainfall and property safety of staff and customers. configure backup power supplies.floods droughts · May lead to interruption of production and · Allocate emergency supplies establish rescue

earthquakes etc. transportation affect the production capacity of teams conduct emergency drills and improve the

The Company places high importance on climate-related issues and incorporates them as a key consideration in its the Company and suppliers and result in delayed emergency response capabilities of personnel.operational strategy. Building on its sustainability governance structure the Company has established a climate governance delivery of products.system led by the Board of Directors. This system guides the Strategy and Sustainability Management Committee in Chronic Temperature · Temperature change will indirectly affect · Strengthen workshop ventilation install

formulating and refining climate-related strategies while overseeing and reviewing climate action practices to ensure Physical change equipment operation and may lead to equipment air conditioners fully recover heat energy for

effective top-down management of climate-related risks and opportunities. Risk failure. Sustained high temperature affects the work heating distribute heatstroke prevention and

efficiency of operators. cooling materials in summer to reduce workshop

At the coordination level specialized subcommittees under the Strategy and Sustainability Management Committee are temperature and ensure a suitable working

responsible for setting environmental targets including those related to climate change and supporting implementation. environment.At the execution level various departments at headquarters jointly ensure the achievement of these targets. Policy Increasingly · With customers all over the world and factories · Establish a strategic analysis team to track and

Risk stringent established in multiple countries the increasingly analyze global policies related to climate change

Looking ahead the Company plans to further strengthen and refine its sustainability governance framework by reviewing regulations stringent requirements of various countries' policies and carbon emission.and policies on related to climate change and carbon emission will · Cooperate with third-party institutions to study

regulatory requirements and benchmarking industry best practices with a focus on clarifying roles and responsibilities climate change increase the pressure on regulatory compliance. the potential impact of regional policies and

enhancing oversight mechanisms and improving performance evaluation systems. and carbon regulations on the business and make adjustments

emissions in a timely manner.· Conduct compliance audits and supervision on

Climate Strategy suppliers formulate green supply chain goals and management policies and eliminate high-risk

suppliers.Aligned with China's "dual carbon" goals the Company has set carbon neutrality as its long-term objective. Climate strategy Technology Competitiveness · Low-carbon has become the mainstream trend of · Establish R&D centres continue to increase

is closely integrated into business decision-making with assessments conducted on the actual and potential impacts of Risk of low-carbon photovoltaic technology development. Fierce market technological investment and promote low-technologies competition requires more resources to be invested carbon technological innovation.climate change on operations strategy and financial planning. in research and development to maintain the leading · Own a number of exclusive core technologies

position in the industry otherwise the market and break through the limitations of traditional

The Company is developing a comprehensive climate strategy covering greenhouse gas emissions management energy competitiveness will be lost. technologies.management resource management carbon market participation and system development. By advancing clean

technology R&D and optimizing production processes the Company aims to deliver green low-carbon photovoltaic Legal Risk Litigation related · Different understandings of the public on the · Follow expert advice to ensure that the zero-

products and services promote low-carbon manufacturing and build a sustainable ecosystem. It will also continue to to net-zero concept of net-zero carbon and the environmental carbon concept used in product promotion and

explore participation in internationally recognized emissions reduction initiatives and commitments striving to meet higher carbon products attributes of products may lead to litigation. sales is unambiguous.· Establish a professional legal department to

standards in climate action. assist the Company in avoiding potential litigation

risks.Climate Risk Management Climate change · With the advancement of the "Dual Carbon" goal · Improve compliance management strictly legislation China may introduce special laws and regulations to implement the requirements of laws and

address climate change in the future putting forward regulations plan production and pollutant

higher requirements for the optimization of the discharge design in advance and implement

The Company is actively establishing a climate governance system. Moving forward it will systematically identify and assess energy structure of the whole society. upgraded standard management.climate-related impacts risks and opportunities based on its business characteristics and internal and external operating · Participate in the formulation and drafting of

environment. This includes developing processes for identifying analyzing and managing climate-related risks and product-related standards.opportunities. · Rely on product and technological advantages to help customers achieve energy transition and

improve customers' environmental performance.Climate risk management will be integrated into the existing enterprise risk management framework enabling continuous

monitoring and evaluation of the Company's climate response capabilities and enhancing overall climate resilience.

58 59/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Risk Type Impact Analysis Countermeasures Environmental Compliance

Market Risk Changes in · Customers' demand for renewable energy and · Upgrade technologies to improve power

customer low-carbon photovoltaic products is gradually generation efficiency reduce cost per kilowatt- Management

behaviour increasing hour and gradually increase market share

· Strict requirements on product carbon footprint · Carry out projects such as full life cycle

may cause loss of product orders environmental impact assessment and low-

carbon product design to optimize product carbon Environmental Management System

footprint

· Continuously track and feedback changes in

market demand to adjust business plans in a HY Solar strictly complies with national and local environmental laws and regulations including the Environmental

timely manner Protection Law of the People's Republic of China and places strong emphasis on the environmental impacts of its

operations. The Company has established a comprehensive environmental management system.Reputational Increased · Stakeholders pay close attention to the green · Take the lead in the industry to commit to

Risk stakeholder and low-carbon performance of the Company and achieving full value chain carbon neutrality Each production site has set up a management structure comprising a Safety Production Management Committee

concern and its products · Invite third-party institutions to conduct full dedicated offices and departmental safety leadership teams or equivalent bodies. Through internal systems such as

negative · If the Company's claims on climate goals and value chain carbon verification

feedback project implementation are inconsistent with · Regularly disclose to the public the completion of environmental responsibility mechanisms and target responsibility agreements the Company ensures that compliance

actions it may lead to reputation damage the Company's climate change goals and phased requirements related to safety environmental protection and occupational health are effectively implemented at all levels.action plans

As of the end of the reporting period all operating sites of the Company had obtained ISO 14001 Environmental

Management System certification. In 2025 the Company's environmental protection investment totaled RMB 44.1936

million covering environmental facility upgrades hazardous waste disposal rainwater and sewage pipeline improvements

Indicators and Targets emergency response rectifications and environmental monitoring.HY Solar aligns with international climate action goals and relevant initiatives actively responding to the temperature control Environmental Risk Management

targets of the Paris Agreement and China's strategic goals of "achieving carbon peak by 2030 and carbon neutrality by 2060."

The Company proactively tracks updates to environmental laws and regulations in its operating regions conducts regular

To advance its carbon neutrality objective the Company has established targets and metrics covering energy water resources compliance evaluations and integrates applicable requirements into internal management systems to effectively mitigate compliance risks.and waste management. It conducts greenhouse gas (GHG) accounting and management at both organizational and product

levels continuously monitors the progress of key indicators and effectively promotes climate action practices. The Company has established procedures such as the Environmental Aspects Identification and Evaluation Control

Procedure and the Hazard Identification and Risk Assessment Procedure. It regularly conducts environmental risk

identification assessment and control to ensure compliance with environmental standards.Greenhouse Gas Management For significant environmental aspects the Company sets clear targets and metrics formulates management plans and emergency response procedures and conducts regular emergency drills to effectively control environmental risks.During the reporting period the Company did not incur any administrative penalties due to violations of environmental

The Company continues to carry out organization-level GHG laws and regulations nor did it experience any major pollution incidents or environmental non-compliance events.emissions quantification. During the reporting period HY Solar ★★★★

(Wuxi) and Hongyuan New Material (Xuzhou) conducted GHG 证书编号：ZCE-01-02-2025-0011申 请 方 名 称：弘元光能（无锡）有限公司

申请方注册地址：江苏省江阴市港城大道1159号

verification for 2024 emissions and developed corresponding 运 营 工 厂 地 址：江苏省江阴市港城大道1159号温 室 气 体 报 告 年 度：2024年1月1日至2024年12月31日

温 室 气 体 排 放 量：35198tCO2e

温室气体抵消百分比：80%

GHG improvement actions supporting the Company's steady 经评价，弘元光能（无锡）有限公司的生产、运营和管理，在基本合规要求、基本管理要求、基础设施、能源和碳排放智能信息化管理系统、能源和资

progress toward sustainable development. 源使用、产品、温室气体减排实施以及碳抵消实施方面，符合T/CECA-G 0171—2022《零碳工厂评价规范》标准的相关要求，评定为：

零碳工厂类型：I 型 评定星级：四星

首次发证日期：2024年8月15日

本次发证日期：2025年7月21日

During the reporting period HY Solar (Wuxi) passed the "Zero- 有效期至：2028年7月20日证书有效期内本证书的有效性依据发证机构的定期监督获得保持。

本证书信息可在本机构网站www.cqc.com.cn查询。

Carbon Factory" certification audit for the second consecutive

year and was awarded the Type I Four-Star Zero-Carbon Factory

certification. In accordance with the Zero-Carbon Factory

Evaluation Standard HY Solar (Wuxi) has advanced digitalized Type I Four-Star "Zero- Carbon Offset Certificate

energy and carbon management implemented emission Carbon Factory" Certificate of HY Solar Emergency Drill for Environmental Incidents Special Environmental Emergency

reduction measures and carried out carbon offsetting initiatives. of HY Solar (Wuxi)? Drill for Hazardous Chemicals??

In 2025 based on its operational boundary the Company quantified GHG emissions from natural gas gasoline diesel

purchased electricity and purchased heat. Total Scope 1 and Scope 2 emissions amounted to 2328462.33 tonnes of CO2

equivalent4.

4 In 2025 following further refinement of the data accounting methodology the Company newly included purchased heat in

its energy consumption and greenhouse gas emissions data.Environmental Pollution Emergency Emergency Drill for Hazardous Waste Waste Oil Leakage Drill

60 Response Drill?? Incidents 61/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Environmental Training

The Company focuses on cultivating employees’ environmental awareness. Each production base in line with its annual

environmental goals and targets develops an annual education and training plan to promote both regular and irregular The Company & 2025 Environmental Targets Progress in 2025

Production Basesenvironmental-themed training. Hongyuan New Materials (Baotou) has established the “Environmental Protection Educationand Training System” to further integrate environmental training into the internal regulatory system. The Company’s 100% compliance of industrial noise discharge Achieved

training content covers environmental laws and regulations solid waste management environmental protection and energy-

saving emission reduction major hazard source management environmental factor identification etc. In 2025 the Company HY Solar 100% compliance of solid waste & hazardous waste disposal Achieved

successfully conducted 81 environmental training sessions for all employees with a total of 10638 employee participations and

over 202 hours of training. 100% compliance of wastewater and waste gas emission discharge Achieved

100% compliance of domestic sewage and rainwater discharge Achieved

100% compliance of VOCs discharge Achieved

100% compliance of day and night noise discharge Achieved

HY Solar (Wuxi)

100% compliance of hazardous waste disposal Achieved

100% compliance of general solid waste disposal Achieved

Training on Environmental Laws and

Regulations Interpretation and Wastewater Zero soil & water pollution accidents Achieved

Treatment

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

100% compliance of solid waste & hazardous waste disposal Achieved

100% synchronized operation of environmental protection management facilities Achieved

Hongyuan Energy

(Baotou)

100% compliance of plant boundary noise Achieved

Solid Waste Management Training Environmental Training by External Experts Zero environmental pollution accidents with media exposure or impact at the

municipal level and above Achieved

Zero environmental pollution accidents Achieved

100% soundness & operations of environmental protection facilities Achieved

100% collection of solid waste and hazardous waste Achieved

Hongyuan NewMaterial (Baotou）

100% compliance rate for environmental protection related training Achieved

General Environmental Training

100% compliance rate for pollutant discharge Achieved

100% management control and compliance of environmental emission indicators Achieved

Hongyuan New 100% disposal of environmental protection facility operation abnormality Achieved

Material (Xuzhou)

Zero EHS government penalty incidents Achieved

Energy Management System Training Quarterly Environmental Training by Departments

62 63/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Energy Management

Case Energy Efficiency Retrofit Project for Air Conditioning Cooling Towers of Hongyuan New

HY Solar regards energy management as a key strategic priority and strictly complies with relevant laws regulations and Material (Baotou)

standards including the Energy Law of the People's Republic of China and the Energy Conservation Law of the People's

Republic of China. In August 2025 Hongyuan New Material (Baotou) launched

an energy efficiency retrofit project for its air conditioning

Each production site of the Company has established an energy management organizational structure clearly defining cool ing towers. The project involved systematic

management responsibilities at all levels with the site general manager or senior management serving as the primary optimization of 88 cooling towers across three plants. By

accountable person. The Company has developed and continuously improved internal systems such as the Energy upgrading the cooling water circulation system excess

Management Manual Energy Management Policy and Resource and Energy Conservation Procedures. cooling generated during production is recovered and

reused for cooling supply thereby reducing the operating

Quantifiable energy targets are set and cascaded down to individual workshops with clearly defined responsible parties time of chillers. In addition control strategies were

and performance evaluation criteria. Based on these targets the Company formulates energy-saving plans conducts optimized to enable flexible switching between cooling and

real-time monitoring through digital platforms and performs regular progress analysis forming a closed-loop energy heating meeting seasonal energy demands of the facilities

management system. while lowering chiller load and extending equipment

lifespan. Upon completion the project is expected to Cooling Water Circulation System of Air Conditioning

During the reporting period all production sites carried out internal audits on energy management providing a foundation achieve annual electricity savings of approximately 24.886

Cooling Towers of Hongyuan New Material (Baotou)

for improving management effectiveness. In 2025 all production sites of the Company successfully obtained ISO 50001 million kWh equivalent to 2286 tonnes of standard coal.Energy Management System certification.Case Liquid Nitrogen Recovery and Collection Retrofit Project of Hongyuan New Material (Xuzhou)

During the reporting period Hongyuan New Material

(Xuzhou) implemented a technical retrofit to address liquid

nitrogen losses discharged during low-load operation of

its air separation unit. A valve was installed on the existing

liquid nitrogen return pipeline to recover previously

vented liquid nitrogen and reuse it as a qualified product.This project significantly improved resource utilization

efficiency reduced energy consumption and indirect

greenhouse gas emissions saved a total of 185 tonnes of

liquid nitrogen and achieved electricity savings of 35000

kWh in the second operating cycle.Liquid Nitrogen Recovery and Collection System of

Hongyuan New Material (Xuzhou)

Case Waste Heat Recovery Project for Air Compressors in Plant Buildings of HY Solar (Wuxi)

Hongyuan New Material (Xuzhou) Energy Data Monitoring Platform

In November 2025 HY Solar (Wuxi) implemented a waste heat recovery project for air compressors in its photovoltaic

module workshop. The project focused on optimizing the winter heating system in the ground-floor glass storage

To ensure the effective achievement of energy targets and indicators each production site actively explores and implements and feeding areas by installing high-efficiency skid-mounted heat exchange equipment. Waste heat generated during

energy-saving and efficiency improvement retrofits based on its specific process characteristics thereby enhancing overall compressed air production is captured and reused for heating while any shortfall is supplemented by the existing

energy utilization efficiency. air-source heat pump system to ensure process temperature requirements are met. After implementation the

project is expected to recover 2.9268 million kWh of heat annually and save approximately 975600 kWh of electricity

In addition the Company regularly organizes relevant training programs to improve employees' awareness and capabilities per year significantly improving energy utilization efficiency.in energy management. In 2025 the Company implemented a total of 18 energy efficiency optimization projects.

64 65/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Water Resources

Management Pollutant Emission and

HY Solar strictly complies with national laws regulations and local policies and

has progressively established a comprehensive water resource management Waste Management

system. The Company continuously strengthens water use management and

optimizes its water use structure. Its water supply is sourced from municipal tap

water networks and fire protection water systems primarily used for production HY Solar strictly complies with applicable laws and regulations clearly stipulates

operations office activities and emergency firefighting. During the reporting management requirements for various pollutant emissions and waste and

period the Company did not cause any negative impact on local water resources in has established supporting procedural documents. All functional departments

terms of water withdrawal consumption or discharge. collaborate to implement pollution control and treatment measures minimizing the

impact of production and operations on the ecological environment.The Company places strong emphasis on water resource management. Each

production site sets water management targets based on its specific operational

characteristics. It actively implements water-saving initiatives such as steam

condensate recovery and reuse and the use of dilute alkaline wastewater in

scrubber systems reducing water consumption at the source and mitigating

operational risks related to water scarcity. Air Pollutant Management

In 2025 Hongyuan New Material (Baotou) introduced a municipal reclaimed Air pollutants generated during production mainly include nitrogen oxides (NOx)

water substitution project to replace tap water in production systems thereby sulfur oxides (SOx) and particulate matter. In accordance with relevant laws and

reducing the consumption of high-quality freshwater resources. Hongyuan Energy regulations the Company has formulated and implemented internal management

(Baotou) implemented a polysilicon water-saving retrofit project achieving documents such as the Wastewater Exhaust Gas and Noise Management Policy and

both condensate recovery and water conservation by recovering surplus steam the Wastewater Exhaust Gas and Noise Control Procedures. At the same time the

condensate and reducing evaporation losses from air-cooling spray systems. Owing Company strictly follows pollutant discharge permit requirements and regularly

to its technological advancements and water-saving performance the project engages qualified third-party environmental monitoring agencies to conduct

successfully obtained provincial-level "Water-Saving Enterprise" certification. testing. Monitoring results consistently comply with national standards. During the

reporting period there were no incidents of excessive air emissions achieving a 100%

In addition the Company promotes water conservation in daily operations. compliance rate for air pollutant discharge.Hongyuan Energy (Baotou) reuses leftover drinking water for cleaning purposes

such as mopping floors and wiping desks while also fostering employee awareness

of water conservation. During the reporting period the Company completed two

water-saving and water recycling projects with a total recycled water volume of

150568032.76 tonnes.

Hongyuan Energy (Baotou) Water-Saving Signage

Hongyuan Energy (Baotou) Clean Water Recycling Signage

66 67/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Wastewater Management Waste Management

The Company strictly complies with applicable legal and regulatory requirements. Each production site formulates

appropriate wastewater management procedures based on its operational characteristics and engages third-party The Company's solid waste mainly includes general industrial solid waste domestic waste and hazardous waste.professional institutions to regularly monitor key pollution indicators. Adhering to the principles of compliant waste management and source reduction the Company has established internal

management systems such as the Solid Waste Pollution Management Policy and the Hazardous Waste Management Policy

At Hongyuan Energy (Baotou) all production wastewater is treated at on-site wastewater treatment facilities and fully systematically standardizing waste classification storage and disposal.reused achieving zero wastewater discharge throughout the year. For domestic wastewater canteen wastewater is first

pretreated through dedicated oil separation facilities then combined with general domestic wastewater that has undergone Production sites such as HY Solar (Wuxi) refine annual solid waste targets by setting waste generation intensity targets

septic tank pretreatment. The combined wastewater is further treated at industrial silicon domestic wastewater treatment developing reduction measures and monitoring progress toward achieving these targets.facilities to ensure compliance with the Grade III standard of the Integrated Wastewater Discharge Standard before being

discharged to the park's centralized wastewater treatment plant for further processing. During the reporting period the Target for solid waste generation intensity of HY Solar (Wuxi) in 2025

Company achieved a 100% compliance rate for wastewater discharge.Case RO Concentrated Water Recovery Project at Hongyuan New Material (Baotou) Solid waste generation Specific hazardous 5

per unit product waste generation per unit

decreased by product decreased byDuring the reporting period Hongyuan New Material

(Baotou) implemented an RO concentrated water

reuse project. By adopting a combined process 5% 50%

of softening filtration and reverse osmosis the Achieved Achieved and the

reduction exceeds

incoming RO concentrated water is treated through 50%

the reverse osmosis system and reused. The treated

water quality meets and exceeds municipal tap water

standards. The project operates in a fully automated

mode significantly improving wastewater reuse

efficiency and effectively adhering to the principles

of "water saving land saving and investment General solid waste is centrally classified and stored in the general solid waste temporary storage room and waste residue

saving." In 2025 the project achieved water savings shed and handed over to qualified units for disposal regularly. Domestic waste is collected through classified dustbins RO Concentrated Water Recovery System of Hongyuan New

of 216163 tonnes. and disposed regularly. The treatment of hazardous waste strictly follows the requirements of laws and regulations and Material (Baotou) is entrusted to qualified third parties for disposal. Hongyuan New Material (Xuzhou) comprehensively utilizes fluorine-

containing sludge processes it into calcium fluoride particles as raw materials for iron and steel plants and other sludges

are disposed of through incineration for power generation. HY Solar (Wuxi) practices the reduced use of module packaging

materials upgrades cleaning equipment and cooperates with relevant departments to improve the reuse rate. In addition

Case Dilute Alkaline Wastewater Reuse Project for Scrubber Systems at Hongyuan New Material the Company conducts training for operators and officers involving hazardous waste once a year with training records (Xuzhou) 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.I n 2 0 2 5 H o n g y u a n N e w M ate r i a l ( X u z h o u )

implemented a technical retrofit to reuse dilute

alkaline wastewater for acid gas treatment towers

across its three plants. By upgrading process Noise Management

pipelines dilute alkaline wastewater discharged

from the wastewater treatment station is filtered and

The Company strictly complies with laws and regulations such as the Emission Standard for Industrial Enterprises Noise

used to replace surface water and is then supplied to

at Boundary establishes and implements noise management-related systems and clarifies departments in charge and

exhaust gas scrubbers as an absorption solution. This

management responsibilities. We conducted spot check and maintenance of equipment generating pollution immediately

project effectively reduces the consumption of surface

dealing with any abnormalities; took appropriate blocking and isolation measures for noise sources to ensure that the

water and liquid alkali realizing resource utilization

noise at the plant boundary complied with the standards; and equipped its employees with noise protection devices

of wastewater. After completion the three plants are

during operation in the vicinity of noise pollution sources to ensure their physical and mental health improve their working

expected to save approximately 0.49 tonnes of water

experience while reducing impacts on the neighboring communities. During the reporting period the Company received no

and 6.23 tonnes of liquid alkali per day. In 2025 the Dilute Alkaline Wastewater Reuse for Scrubber Systems at noise complaints.project achieved annual savings of 127000 tonnes of Hongyuan New Material (Xuzhou)

surface water and 1520 tonnes of liquid alkali.

5 Specific hazardous waste includes waste rags and spent flux.

68 69/ HONGYUAN Green Energy Co. Ltd. Environment / 2025 Environmental Social and Governance Report

Biodiversity Case Photovoltaic Desert Control Project in Arid and Desert Areas

The Company attaches great importance to ecosystem and biodiversity protection strictly abides by laws and regulations In 2025 the Company installed 508 MW of high-efficiency HT series modules at the southeastern edge of the Tengger

such as the Environmental Impact Assessment Law and the Soil and Water Conservation Law of the People's Republic

of China and ensures compliance with control requirements such as ecological protection red lines. Confirmed by Desert in Zhongwei Ningxia establishing a local "desert control demonstration project." The project explores an

environmental impact assessment the site of the Company and its bases do not involve biodiversity sensitive areas such integrated land-use model of "power generation above panels sand stabilization below panels and vegetation

as ecological protection red lines nature reserves and important wetlands and the operation activities have no adverse planting between panels." It is expected to fix approximately 20000 tonnes of drifting sand annually and upon

impact on local biodiversity. full grid connection generate about 800 million kWh of electricity per year equivalent to saving 300000 tonnes of

standard coal and reducing CO2 emissions by 730000 tonnes annually.In the site selection stage of new projects all production bases of the Company include potential ecological impacts in

the preliminary assessment and strictly follow the requirements of ecological protection red lines and territorial space In addition the Company developed a 509 MW photovoltaic project in the Ulan Buh Desert in Inner Mongolia. By

planning; all bases are located in approved industrial parks avoiding disturbance to the ecosystem from the source; adopting high-efficiency double-glass modules the project ensures stable power generation while also contributing

during the construction and operation of the bases measures such as closed factory building design rain and sewage to windbreak and sand stabilization providing a sustainable source of clean energy for desert regions.diversion noise control and greening isolation belts are adopted to further reduce potential disturbance to the surrounding

environment; in the production and operation stage the Company continues to promote clean production and pollution

prevention measures strengthens the prevention and control of soil and groundwater environmental risks and further

reduces the indirect impact on the ecological environment and biodiversity through energy conservation and consumption

reduction pollutant emission reduction and efficient resource utilization; an environmental monitoring mechanism is

established to ensure that when any ecological impact is found restoration measures such as vegetation restoration and

soil improvement are taken. During the reporting period there were no significant impacts on biodiversity attributable to

the Company's production and operational activities or its products and services.In addition the Company continues to explore diversified "Photovoltaic +" applications. Through the in-depth integration

of photovoltaic modules such as fishery cultivation and desert management the Company promotes the coordinated

development of clean energy development comprehensive resource utilization and ecological restoration.Case Fishery-Solar Hybrid Photovoltaic Power Generation Project

In 2025 the Company supplied 65 MW of high-efficiency photovoltaic modules for the Zhenjiang Dantu Rongbing Salt

Resource Zone Fishery-Solar Hybrid Project. Leveraging local water resources and solar conditions the project adopts

an integrated "fishery-solar hybrid" model enabling the coordinated use of surface power generation and underwater

aquaculture. While conserving land resources the moderate shading provided by photovoltaic panels helps reduce

water temperature limit evaporation and inhibit algae growth thereby improving water quality and enhancing fishery HY Solar Zhongwei Project Ningxia?

productivity. After grid connection the project is expected to generate approximately 74.23 million kWh of electricity

annually saving about 22600 tonnes of standard coal and reducing CO2 emissions by approximately 61800 tonnes

achieving synergistic environmental ecological and economic benefits alongside clean energy supply.HY Solar Ulan Buh Desert Project Inner Mongolia

Zhenjiang Dantu Rongbing Salt Resource Zone Fishery-Solar Hybrid Photovoltaic Power Generation Project

70 71/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

People-

Oriented

Employee Rights and Interests 74

Talent Development 78

Occupational Health and Safety 82

Community Public Welfare 86

No incidents of child labor forced labor discrimination

or harassment occurred

No grievances regarding non-compliant employment

such as child labor forced labor or discrimination were

received

100% coverage of employees under collective

agreements6

100% of employees participated in performance

appraisal

Occupational disease incidence rate: 0

6 Statistical scope: Hongyuan New Material (Baotou) Hongyuan

New Material (Xuzhou) Hongyuan Energy (Baotou) HY Solar

(Wuxi); HY Solar has not yet signed a collective bargaining

agreement.

72 73/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Employee Rights and Interests Employee Benefits Overview

Protection of Basic Rights and Interests Holiday Care

Leave Policies (including paid annual

HY Solar attaches great importance to the protection of employees' basic rights and leave paid sick leave etc.)

interests. It strictly complies with the applicable laws and regulations in the places

of operation at home and abroad such as the Labor Law of the People's Republic of

China as well as the relevant conventions of the International Labour Organization. Free Working Meals

The Company has established a systematic human resource management system

covering key links such as employment and contracts working hours and leave Commercial Insurance

salaries and benefits and training and development ensuring that employment HY Solar (Wuxi) Hiking Activity

management is legal compliant standardized and transparent. At the same time

the Company attaches importance to the construction of employee representative Communication Subsidy

organizations. The Company has a trade union which participates in the formulation

and supervision of relevant company management systems promotes the collection Interest Groups

of employee opinions and the protection of rights and interests and ensures

employees' freedom of association and right to collective bargaining.Family Life Support

On this basis the Company continues to benchmark against the SA8000 standard

integrating requirements such as the prohibition of child labor and forced labor Trade Union Activities

the guarantee of a safe and healthy working environment respect for freedom HY Solar (Wuxi) SA8000

of association and the right to collective bargaining anti-discrimination salaries Management System Certification

and benefits working hours rest and leave and overtime into daily operational

processes. It improves the grievance mechanism and internal supervision mechanism

to promote continuous improvement: currently HY Solar (Wuxi) has formulated

systems such as the Child Labor Remediation Procedures. In the event of child labor Hongyuan New Material (Xuzhou) Team Building Activity

employment harassment and abuse or non-compliant employment remedial and

corrective measures can be promptly initiated to protect the rights and interests of

affected employees. By the end of the reporting period HY Solar (Wuxi) has obtained

the SA8000 Social Accountability Management System Certification further improving

the level of social responsibility management; no incidents of child labor forced

labor discrimination or harassment occurred in the Company and all its bases; no Hongyuan New Material (Baotou) Summer

grievances regarding non-compliant employment such as child labor forced labor or Cultural and Art Festival

discrimination were received.Employee Care and Family Support HY Solar Running Team Building Activity

HY Solar continuously improves the employee welfare guarantee system legally pays social insurance and housing

provident fund for employees provides paid annual leave statutory holidays and diverse welfare leave arrangements and Hongyuan New Material (Baotou) Reading

issues holiday benefits during major festivals and holidays to enhance employees' sense of gain. At the same time each Sharing Session

subsidiary organizes rich cultural sports and recreational activities team building and physical and mental health projects

according to employees' interests and health needs including badminton running karaoke gym and stress management

training creating a positive healthy united and progressive organizational atmosphere.The Company pays attention to supporting employees' families and employees in difficulty. It has specially established an

employee care fund to provide special financial assistance and consolation to employees with major illnesses or sudden

difficulties; each subsidiary continuously improves the treatment of employees according to local actual conditions

adopting supporting measures such as housing assistance and enrollment support for employees' children to reduce

employees' worries and enhance their sense of belonging and team cohesion.Hongyuan Energy (Baotou) Lantern Festival Hongyuan Monthly Magazine Hongyuan Monthly Magazine

Activity

74 75/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Diversity Equity and Inclusion Employee Communication

HY Solar actively promotes diverse equitable and inclusive management and pays attention to the rights and interests We have built a multi-channel employee communication and opinion feedback mechanism aiming to ensure the effective

of employees from special groups. Each base provides various conveniences for its female employees such as mother- transmission of employees' voices smooth two-way communication channels and protect employees' right to know right

and-baby rooms rest rooms post adjustments during pregnancy female health lectures free cervical and breast cancer to participate and right to express.screenings and Women's Day activities; it provides supporting living facilities such as halal canteens or special microwave

ovens for ethnic minority employees to ensure a fair respectful and diverse working and living environment. The Company

recruits disabled employees and provides them with barrier-free access and convenient working facilities. By the end of the

reporting period the Company had 39 disabled employees accounting for 0.69% of the total number of employees. Special Person Connection

Mechanism

Multi-Channel

Communication System Trade union chairs and

designated personnel from the

human resources department of

Online Communication

Platform each base serve as daily points

of contact to respond promptly

Established the "HY Solar Voice" to employees' feedback and

employee opinion feedback Special Opinion Email handle follow up matters

platform supporting real-name

or anonymous submission of Set up a dedicated email

suggestions and demands to for suggestion boxes to

extensively collect employee centrally receive employees'

opinions rationalization suggestions

and problem feedback

Hongyuan New Material (Baotou)

Support Visit for Employees in Employee Representative

Difficulty Congress System

Legally ensure employees'

Face-to-Face participation in the Company's

Communication Mechanism democratic management

and discussion on major

Regularly organize employee issues through the Employee

forums to conduct exchanges Representative Congress

Hongyuan Energy (Baotou) Hongyuan New Material (Baotou) on topics such as career

Women's Day Activity Barrier-Free Access development and working

environment

During the reporting period

A total of The Company and various

with a handling rate of bases held a total of with a total of

30%

opinions and feedback were 100 3 182

HY Solar (Wuxi) Women's Day Hongyuan New Material (Xuzhou) Free Female received through platforms Employee Representative participants.Activity Cervical and Breast Cancer Screening Activity such as "HY Solar Voice" Congresses

76 77/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Talent Empowerment

Talent Development The Company actively carries out talent empowerment work to support the improvement of employees' capabilities

and career development providing talent guarantee for the sustainable development of the organization. Combined

Talent Governance with job needs and employees' development status each base formulates annual training plans and job development arrangements providing employees with continuous learning and growth opportunities. The training content includes new

employee onboarding training professional training and cadre training. In 2025 the Company newly built the "Hongyuan

The Company has established a standardized management mechanism around employees' career development. The Learning Hall" online learning platform providing various courses covering professional skills management capabilities

human resources department of each base as the responsible subject for talent development is responsible for organizing and professional ism facilitating employees to learn at any time and improve their capabilities independently. During the

and implementing recruitment and allocation training management performance evaluation and promotion management. reporting period the average training hours per employee were 61.02 hours with a training coverage rate of 100%.The Company has built a talent development and management system centered on the Talent Management System and

Promotion and Demotion Management System clarifying career development paths and promotion mechanisms and

connecting with systems such as the Employee Handbook and Performance Management System forming a full-process Training System

institutional framework covering "selection - training - evaluation - development" to ensure that the process of employees'

career growth is standardized orderly fair and transparent. During the reporting period we optimized and adjusted the Project Implementation

salary management structure improved the rationality and incentive of the salary system promoted the long-term and Category Curriculum System Methods

stable development of employees.Reserve / On-the-job / Promotion Training for Senior Management Cadres External Study Exchange

Management Reserve / On-the-job / Promotion Training for Middle Management Cadres Programs

Training Special Intensive Training

Talent Strategy Reserve / On-the-job / Promotion Training for Grassroots Management Cadres Classes

(Eaglet Program Eagle

Program Leader Eagle

Adhering to the people-oriented development concept the Company regards talents as an important resource for its Marketing Technology Equipment Quality Functional Program etc.)

sustainable development and clarifies the positioning and goals of talent development around job requirements and Vocational Track Track Track Track Track Brainstorming Sessions

Training

business needs. Guided by the cadre standards and professional talent standards the Company has built a multi-level Training Training Training Training Training Group Learning Sessions

training system supporting the continuous improvement of employees' capabilities through new employee onboarding Reading Sharing Sessions

guidance job capability improvement key position training grass-roots manager development projects and management Business-specific Post Onboarding Training for New Employees Experience Sharing Sessions

thematic seminars. The Company advocates that employees take the initiative to plan their career development paths New Employee Hongyuan Lecture Hall

accumulate experience in practice and improve their capabilities through the combination of learning and work. Through Training Social-recruited New Employee Campus-recruited New Intern Onboarding Training Employee Onboarding Training Training Themed Learning Festival

institutional and resource guarantees it provides employees with a stable and clear growth platform to promote the

coordinated realization of personal development and organizational goals. Institutional framework curriculum framework instructor framework operational framework e-learning platform

Training System (Hongyuan New Material (Baotou))

Risk Management

Case Hongyuan Learning Hall - Online Learning Empowerment Platform

To address human capital risks such as key position turnover capability gaps and mismatched organizational development

In 2025 HY Solar built the "Hong yuan Learning

the Company has established systematic management measures around talent reserve training and improvement

Hall" online learning platform to provide systematic

performance management and promotion mechanisms to enhance organizational stability and sustainable development

learning and development support for the Company's

capabilities.employees. The platform covers courses in various

fields such as energy storage technology sales and

customer management laws and regulations and

Talent Reserve corporate culture supporting new employee training

skill improvement compliance education and job

In response to the succession risks of key positions and the employment needs brought about by business expansion

empowerment. Through the integrated functions

each base systematically evaluates the existing core talent pool through annual talent inventory meetings combined

of "learning practicing assessing and managing"

with projects such as 360-degree evaluation and structured behavioral interviews to identify high-potential talents. In

employees can learn at any time take online assessments

2025 we further clarified the scope of key positions for the successor plan revised and improved the successor standards.

and feedback opinions realizing measurable and

By establishing a successor talent pool the Company has clarified the candidates and training paths for key position

traceable learning outcomes. The platform also

replacements reducing the risk of position vacancies.introduces high-quality internal courses to promote

At the same time the Company has launched internal transfer and internal recruitment projects to promote the rational knowledge precipitation and experience inheritance

flow of talents and the development of composite capabilities enhancing organizational resilience. During the reporting helping employees improve their capabilities and the

period 560 employees were transferred internally and 115 employees were recruited internally. overall development of the organization.

78 79/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Case AI-Enabled Enterprise Management Training

Hongyuan New Material (Baotou) launched

an AI training project providing employees

with courses on the application of artificial

intelligence in enterprise management

helping employees understand the practical

value of AI technology in daily work and

business management. Through training

employees can master basic tools and

methods improve work efficiency and

promote the continuous improvement of Hongyuan New Material (Baotou) Annual Excellent Employee Selection and HY Solar (Wuxi) "Power of Role Models"

the digitalization and intelligence level of Commendation Activity Selection Activity

enterprise management.Capability Improvement Experience Inheritance Growth Incentives

The Company helps employees master Through the "mentor- The Company implements a

composite skills and improve job adaptability by apprentice" project campus recruitment training

organizing employees to participate in municipal and technical exchange project providing targeted HY Solar (Wuxi) Annual Excellent

skill competitions skill level evaluations and activities the Company takes guidance and on-the-job Employee Selection and

carrying out on-the-job special training projects experienced employees practical opportunities to Commendation Activity

such as multi-skilled worker training. Among as instructors to provide help young employees adapt

them Hongyuan New Material (Xuzhou) jointly practical guidance and to the working environment Hongyuan New Material (Xuzhou) Year-End Commendation Conference

carried out industrial robot skill level evaluations experience sharing for new and job requirements as

with Xuzhou University of Technology with a employees or employees soon as possible. At the same

total of more than 400 participants and finally on job rotation. In this way time through activities such Performance Management

about 200 employees obtained senior worker employees can quickly as selection and recognition The Company clarifies the norms of performance management in the Employee Handbook requiring that performance

certificates and about 100 employees obtained master key skills in daily of outstanding employees appraisal must follow the principles of objectivity fairness impartiality openness and two-way communication to

intermediate worker certificates. At the same work form the transmission and interviews with model ensure that employees' personal goals are consistent with the organizational strategy. Each production base formulates

time each base builds employee bookstores and accumulation of on-the- employees it encourages performance indicators according to job responsibilities and organizes different methods such as probation assessment

carries out thematic learning activities and job experience and promote employees to give full play cognitive assessment monthly assessment and year-end performance assessment to continuously monitor and feedback

knowledge sharing encouraging employees knowledge exchange and to their personal potential employees' work performance. The performance results are not only used for incentive measures such as annual salary

to learn independently and continuously collaboration between establish good professional adjustment bonuses promotion and selection of excellent employees but also provide reference for the allocation of

accumulate theoretical knowledge and practical different positions. models and enhance training resources and personnel allocation promoting employees' continuous improvement and capability enhancement

experience to improve their professional level employees' motivation for and improving the overall efficiency of the organization and talent stability. During the reporting period the percentage of

and comprehensive capabilities. career development and employees who received regular performance and career development assessments was 100%.investment in work.Talent Promotion

Case "Power of Role Models" Outstanding Employee Selection Activity In accordance with documents such as the Talent Management System and Promotion and Demotion Management

System the Company clarifies career development channels promotion standards and evaluation processes. Each base

conducts promotion assessments and job adjustments according to employees' capabilities performance and job needs

In 2025 HY Solar (Wuxi) launched the "Model Employee Interview" activity selecting employees with excellent ensuring a fair and transparent process. Through the promotion mechanism the Company provides employees with clear

performance and practicing corporate values to share work experience and growth stories in the front line. Through development paths and growth opportunities and combines training and empowerment measures to help employees

demonstration and experience exchange it encourages employees to learn advanced practices and enhance team continuously improve their job competence realizing the synchronous advancement of personal development and

cohesion and motivation for career development. organizational goals.

80 81/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Occupational Health and Safety Safety Risk Prevention Measures

The Company has established safety management systems and implementation rules covering hazard identification

safety equipment configuration and hierarchical risk control providing a standardized and stable safety management

Work Safety Management System environment for production and operation. The Company and each base regularly carry out hazard identification and risk

assessment work dynamically update the hazard list every year and continuously improve hierarchical control measures

The Company strictly complies with the Work Safety Law of the People's Republic of China and applicable laws and to strengthen risk prevention from the source.regulations in overseas operation locations adhering to the policy of "safety first prevention first and comprehensive

management" to protect employees' life and health at work. By establishing an inter-departmental Work Safety

Management Committee and a Work Safety Office covering responsible persons and employee representatives of

all operation sectors it coordinates the investment of safety resources and promotes the implementation of safety

management work in all links to ensure that the production environment and working conditions meet safety standards.By the end of the reporting period the Company and all other bases have successfully passed the ISO 45001 Occupational

Health and Safety Management System Certification. Among them both Hongyuan New Material (Baotou) and Hongyuan

New Material (Xuzhou) have obtained the Level 3 Work Safety Standardization Enterprise certification.The Company also attaches importance to the safety management of suppliers and contractors and has formulated the

Supplier and Contractor Management System to ensure the personal safety of external personnel entering the factory

such as suppliers.

2025 Key Performance Indicators

Industrial Noise Compliance Status: Chemical Leakage Incidents: Fire and Explosion Accidents:

100% Compliance 0 Incidents 0 Accidents

In terms of emergency management the Company and each base have formulated and continuously optimized various

emergency plans organized department-level and company-level emergency drills and some bases have carried out

Serious Injury Disability and Coverage Rate of Occupational Physical Occupational Health and Safety comprehensive emergency drills in conjunction with external units such as the government and hospitals continuously

Fatality Incidents: Examinations & Health Records: (OHS) Emergency Incidents: improving the ability to respond to emergencies and coordinate disposal. During the reporting period the Company and

0 100 0 all other bases carried out a total of 891 emergency drills with a total of more than 10000 participants. Incidents % Coverage Incidents

In addition the Company strengthens process control and risk investigation through regular equipment maintenance

and internal and external occupational health and safety supervision and audits. During the reporting period the total

investment in work safety of the Company and all bases exceeded 17.61 million yuan and no major safety accidents

Major and Higher-level Production Work-related Fatality Incidents Arising Lost Time Injury Frequency Rate occurred.Safety Liability Accidents: from Production Accidents: (LTIFR) per 200000 Working Hours:

0 Incidents 0 Incidents 0.235

Occupational Health Management

The Company strictly complies with the Occupational Disease Prevention and Control Law of the People's Republic

of China and applicable laws and regulations in overseas operation locations formulates a series of Occupational

Health Management Systems and carries out occupational health management work in accordance with the law. The

Company and all bases entrust independent third-party testing institutions to test occupational disease hazards every

year to ensure that the working environment meets standard requirements; it establishes occupational health files for

employees involved in occupational disease hazards and organizes pre-employment on-the-job and post-employment

physical examinations to achieve full-cycle health management. The physical examination fees are borne by the

Company effectively protecting employees' health rights and interests. During the reporting period the incidence rate of

occupational diseases was 0.

82 83/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Physical and Mental Health Management Safety Culture

The Company pays attention to employees' physical and mental health helping employees relieve work pressure and The Company continuously increases the intensity of work safety and occupational health education. The training

improve their psychological adjustment ability through activities such as mental health lectures and psychological content covers key areas such as laws and regulations safety operating procedures new employee onboarding

counseling. At the same time the Company encourages employees to organize and participate in various sports education emergency plans fire management and special operations. Through multi-level training methods such as

community activities and fitness exercises and enhances employees' physical fitness and promotes team communication three-level safety education special education for special types of work and regular safety education it ensures that

and cohesion through activities such as ball games and walking. In the meantime the canteen provides fat-reducing employees systematically master safety knowledge and operating skills. We also pay attention to the safety of external

meals and nutritional matching options according to employees' health needs advocating scientific diet and a healthy contractors such as construction contractors and suppliers requiring them to sign a safety agreement and participate

lifestyle helping employees develop good healthy living habits. in safety training before entering the factory and take the initiative to assume the responsibility of labor occupational

health and safety in the supply chain.At the same time the Company and each base organize employees to participate in Red Cross first aid training courses

respectively and some employees have obtained first aid certificates further improving the on-site emergency rescue

ability. Hongyuan Energy (Baotou) also carried out AED first aid practical training in conjunction with hospitals to

enhance employees' self-rescue and mutual rescue abilities in emergency situations. In addition we organize the "Work

Safety Month" every year carrying out a series of activities such as knowledge competitions practical training and theme

comics to improve the safety awareness and emergency disposal ability of all employees.

84 85/ HONGYUAN Green Energy Co. Ltd. People-Oriented / 2025 Environmental Social and Governance Report

Community Public Welfare

We actively fulfill our social responsibilities by embracing the development concept of collaboration and shared benefits

with the community. We integrate public welfare initiatives into the entire enterprise operation process promoting shared

growth promotion and progress between the Company and society. During the reporting period the Company and all

production bases invested a total of RMB 45310 thousand in public welfare. The initiatives engaged 1344 participants

contributed 280 hours of volunteer service and benefited 2472 people.Community Voluntary and Donation Activities

Combined with local realities each base continuously carries out community

donation and service activities covering directions such as helping vulnerable

groups and improving the environment. Hongyuan New Material (Baotou)

has held the "Fraternity One-Day Donation" activity for three consecutive Education Support

years carried out public welfare activities such as blood donation and

afforestation and established a police contact point in the production base The Company pays attention to the development of education supporting students' growth and learning by donating

in cooperation with public security departments to protect the safety of local 300000 yuan to the Hongshawan Excellent Education Fund; Hongyuan New Material (Baotou) set up a caring service

residents; Hongyuan New Material (Xuzhou) visited poor community residents point during the college entrance examination providing candidates with cooling supplies such as mineral water

and nursing homes; Hongyuan Energy (Baotou) carries out community co- and fans to help students take the exam smoothly reflecting the Company's continuous care for education and the

construction activities electricity safety lectures repainting of convenient development of young people.seats voluntary snow removal voluntary blood donation voluntary tree

planting and other volunteer services and donated RMB 50000 to the local

Guyang County Red Cross Society.Village-Enterprise Cooperation

HY Solar (Wuxi) actively participates in the "Two-Way Interaction between Villages and Enterprises Supply and Marketing

Cooperation for Common Prosperity" action maintains a collaborative linkage mechanism with the Jiangshi Village

Supply and Marketing Cooperative and regularly carries out visits and exchanges to understand the local development

needs. Combining its actual resources and capabilities the Company promotes collaborative cooperation between

enterprises and villages and won the title of "Spokesperson for Common Prosperity" whose contributions to rural

revitalization have been recognized.

86 87/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Appendix

With Reference to

International Financial Reporting Standards (IFRS) S1 – General Requirements for Disclosure of Sustainability-

About This Report Related Financial Information

International Financial Reporting Standards (IFRS) S2 – Climate-Related Disclosures

Sustainability Accounting Standards Board (SASB) Standards for the Photovoltaic Technology and Project

The 2025 Environmental Social and Governance Report of HY Solar Co. Ltd. (hereinafter referred to as "this Report" or "ESG Development Industry

Report") is the 4th ESG report of HY Solar Co. Ltd. Its purpose is to fairly and objectively present our goals management

methods practices and performance in the environmental social and governance fields to all stakeholders. United Nations Sustainable Development Goals (UN SDGs)

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

Unless otherwise specified the financial data in this Report are denominated in RMB. The Report is released annually and

the previous report was released in April 2025.Data Sources

Time Scope

The cases and data in this Report are all from the original records of the Company's actual operations or financial reports.January 1 2025 to December 31 2025 with some information slightly extended. Unless otherwise specified the currency types and amounts involved in this Report are measured in RMB.Organization Scope

Confirmation and Assurance

This Report covers HY Solar Co. Ltd. and its subsidiaries. For the convenience of writing some entities will appear in the

Report by their abbreviations and the description of their business types and reference relationships is as follows: This Report was approved by the Board of Directors on April 28 2026.This Report has obtained a "limited assurance" opinion issued by TüV SüD Certification and Testing (China) Co. Ltd. see

"Assurance Statement".Full Company Name Abbreviation

Hongyuan Green Energy Co. Ltd. HY Solar the Company We

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

Hongyuan New Material (Baotou) Co. Ltd. Hongyuan New Material (Baotou) Report Acquisition

HY SOLAR Co.Ltd. HY Solar (Wuxi) This Report is available in PDF electronic format on:

Hongyuan New Material (Xuzhou) Co. Ltd. Hongyuan New Material (Xuzhou) Shanghai Stock Exchange website (http://www.sse.com.cn)

Company website (www.hysolar.com)

HY Solar WeChat Official Account

Compilation Basis

In Accordance With

Contact Information

Global Reporting Initiative (GRI) Standards 2021

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 – Standardized Operation Contact Address: No 158 Nanhuzhong Rd Binhu District Wuxi City Jiangsu Province

Contact Phone: 0510-85390590

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 – Sustainable Development Report Contact Email: pr@hysolar.com

(Trial)

88 89/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Assurance Statement

90 91/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Key Performance Table

Economic Performance

Corporate Revenues

Category Indicator Unit 2025 2024 2023

Direct Economic Value

Generated Revenue RMB 10000 742548.50 730236.40 1185887.62

Economic Value Operating Costs RMB 10000 755996.65 878480.44 1135225.42

Distributed Employee Salaries

and Benefits RMB 10000 92615.39 132743.66 139131.07

Note: The statistical scope of employee salaries and benefits was updated in 2025 to include short-term compensation post-

employment benefits termination benefits and other benefits due within one year. Based on this update the 2024

and 2023 data have been recalculated and restated.Localized Procurement

Localized Procurement

Hongyuan Hongyuan

Hongyuan HY Solar

Indicator HY Solar New New Material

Energy (Wuxi)

Material (Xuzhou)

20258545758977

Ratio of Procurement

Expenditure in the 2024 83 30 81 82 71

Province (%)

20238133325864

Responsible Supply Chain

Indicator6 Unit 2025 2024 2023

Number of New Suppliers That Signed Statements Company 171 127 236

Ratio of New Suppliers Evaluated Using Questionnaires

Containing Environmental and Social Indicators % 100 100 100

Number of Suppliers Terminated Due to Identified Significant

Environmental/Social Negative Impacts Company 0 0 0

Number of Suppliers That Received Training/Improvement Company 2 0 0

6 The statistical scope for 2023 and 2024 includes Hongyuan New Material (Baotou) Hongyuan New Material (Xuzhou) and HY

Solar (Wuxi) only

92 93/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Environmental Performance

Greenhouse Gas Emissions

Emission

Indicator Source Unit 2025

7 2024 2023 Indicator Unit 2025 2024 2023

Scope 1: Direct Greenhouse Gas

Emissions 2878.10 2696.33 8784.70 kWh 3655865379.00 3132874805.00 2951177915.00Purchased Electricity

Natural Gas 2515.77 2251.28 155.38 GJ 13161115.36 11278349.29 10624240.49

Gasoline 207.64 293.74 181.02 Ratio of Purchased Electricity to Total Energy Consumption % 99.64 99.62 95.50

Diesel Tonnes of 154.68 151.31 193.71 Purchased Thermal Energy GJ 116158.00 / /

carbon dioxide

Scope 2: Indirect Greenhouse Gas equivalent

Emissions from Energy 2325584.24 2084659.81 1100561.76 Renewable Energy Consumption GJ 6033864.56 6318557.81 1084837.00

Purchased

Electricity 2312806.86 2084659.81 1100561.76

Energy Consumption Intensity per GJ / ten thousand

10000 yuan of Output Value yuan output value 17.94 15.50 9.38

Purchased

Thermal Energy 12777.38 / /

Total Greenhouse Gas Emissions (Scope

1 and 2) 2328462.33 2087356.14 1691841.46

Tonnes of carbon

Emission Intensity per 10000 yuan of dioxide equivalent Water Resource Utilization

Output Value / ten thousand 3.14 2.86 1.43

yuan output value Indicator Unit 2025 2024 2023

Total Water Intake 8325641.41 10080437 9307220.88

Total Water Discharge 5046496.00 6168759 4344412

Energy Use8 t

Total Water Consumption 3279145.41 5871043 4515265.88

Indicator Unit 2025 2024 2023 Circulating Water Consumption 150568032.76 146879278.70 /

Total Energy Consumption tce 455037.51 386699.10 381441.39

Direct Energy Consumption tce 1768.34 1668.79 18741.62

Indirect Energy Consumption tce 453269.17 385030.31 362699.77

Waste Management

Total Energy Consumption GJ 13324775.44 11321765.91 11124566.67

Indicator Unit 2025 2024 2023

m3 1163527.70 1045289.93 13830709.00

Natural Gas

GJ 41431.48 37221.21 492490.84 Hazardous Waste Generation t 307.40 660.58 59.64

9

L 93489.11 133534.82 141547.74 Hazardous Waste Recovery Rate % 40 / /

Gasoline

GJ 4020.03 4174.95 4425.47 General Solid Waste Generation t 61422.80 55638.53 31760.72

10

L 57163.00 56323.76 95056.23 General Solid Waste Recovery Rate % 100 / /

Diesel

GJ 2050.57 2020.46 3409.87 Total Waste Generation t 61723.24 56299.11 31820.36

Compliant Waste Disposal Rate % 100 100 100

7 The organizational operational boundary for the 2025 reporting year covers HY Solar HY Solar (Wuxi) Hongyuan Energy

(Baotou) Hongyuan New Material (Baotou) and Hongyuan New Material (Xuzhou). During the reporting period the statistical 9

scope was further refined and purchased thermal energy was newly included in the Company's energy use and greenhouse This indicator was newly collected in 2025 to enhance alignment with the disclosure standards and rating requirements of

gas emissions data. SASB EcoVadis and other frameworks.

10

8 In 2025 the statistical scope was further refined and purchased thermal energy was newly included in the Company's energy Same as above

use and greenhouse gas emissions data.

94 95/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Social Performance Indicator Unit 2025 2024 2023

Employees and Other Workers Retention Rate After Parental Leave % 97.33 96.43 98.95

By Geennddeerr 按性别分 按性别分

Indicator Unit 2025 2024 2023

Retention Rate After Parental Leave For Male Employees % 98.61 97.85 98.71

Total Number of Full-Time Employees Person 5692 6347 10804 Retention Rate After Parental Leave For Female Employees % 93.02 89.47 100.00

By Aggee By Age 按年龄分 按 年 龄分 按 年 龄分

Number of Employees Under 30 Years Old Person 1713 2142 4544

Labor Human Rights

Number of Employees Aged 30-50 Years Old Person 3687 3919 5967

Number of Employees Over 50 Years Old Person 292 286 293 Indicator Unit 2025 2024 2023

By Etthhnnicicitiyty 按民族分 按民族分 按民族分 Number of Discrimination Incidents Case 0 0 0

Han Nationality Person 5352 6026 10260 Number of Discrimination-Related Lawsuits Case 0 0 0

Other Ethnicities Person 340 321 544 Number of Operational Sites with Significant Child Labor Incident Risks Unit 0 0 0

By Geennddeerr 按性别分 按性别分 按性别分 Number of Operational Sites with Significant Risks of Forced or Compulsory Labor Unit 0 0 0

Number of Male Employees Person 4500 4938 8427 Proportion of Security Personnel (Including Outsourced) Who Received Human Rights Training % 100 100 100

Ratio of Male Employees % 79 78 78

Number of Female Employees Person 1192 1409 2377

Collective Bargaining Agreements11

Ratio of Female Employees % 21 22 22

By Eduuccaatitoionn L eLveevlel 按学历划分 按学历划分 Indicator Unit 2025 2024 2023

Doctoral Degree Person 4 3 3 Number of Regular Employees Covered by Collective Bargaining Agreements Person 5375 5934 10373

Master's Degree Person 61 72 89 Coverage Rate of Collective Bargaining Agreements % 100 100 100

Bachelor's Degree Person 1090 1240 1672

College Degree Person 2140 2242 3903

Market Performance

High School and Below Person 2397 2790 5137

Hongyuan Hongyuan

By Naattioionnaaliltiyty 按国籍分 按国籍分 按国籍分 Hongyuan New New HY Solar Indicator Unit HY Solar Energy

Material Material (Wuxi)

Number of Employees in China Person 5686 6339 10802 (Baotou)(Baotou) (Xuzhou)

Number of Overseas Employees Person 6 8 2 Ratio of Regular Employees' Starting Salary to Local Minimum Ratio 1 1 1.5:1 1 1.5:1

Number of Disabled Employees Person 39 46 82 Wage

Total Number of Dispatched Workers Person 772 857 489 Ratio of Male Employees' Starting

Salary to Local Minimum Wage Ratio 1 1 1.5:1 1 1.5:1

By Geennddeer r 按性别分 按 性 别分 按 性 别分

Number of Male Dispatched Workers Person 609 677 405 Ratio of Female Employees' Starting Salary to Local Minimum Ratio 1 1 1.5:1 1 1.5:1

Number of Female Dispatched Workers Person 163 180 84 Wage

Return-to-Work Rate After Parental Leave % 100 100 100 Proportion of Senior Executives

Hired Locally % 100 0 33 0 32.9

By Geennddeerr 按性别分 按性别分 按性别分

Return-to-Work Rate of Male Employees After Parental Leave % 100 100 100

Return-to-Work Rate of Female Employees After Parental Leave % 100 100 100 11 Statistical scope: Hongyuan New Material (Baotou) Hongyuan New Material (Xuzhou) Hongyuan Energy (Baotou) HY Solar

(Wuxi); HY Solar has not yet signed a collective bargaining agreement.

96 97/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Index Table of the Shanghai Stock Exchange Self-

Career Development and Training Regulatory Guidelines for Listed Companies No. 14 –

Indicator Unit 2025 2024 2023 Sustainable Development Report (Trial)

Training Coverage Rate % 100 100 100

Average Training Hours per Employee Hour 61.02 25.36 / Theme No. Topic Clause Report Chapter

Proportion of Employees Participating in Performance Appraisal % 100 100 100 1 Climate Change Response Articles 21 to 28 Climate Change Response

2 Pollutant Emissions Article 30 Pollutant Emissions and

3 Waste Disposal Article 31 Waste Management

Ecosystem and Biodiversity

Occupational Health and Safety Environment 4 Conservation Article 32 Biodiversity

5 Environmental Compliance Article 33 Environmental Compliance

Indicator Unit 2025 2024 2023 Management Management

6 Energy Utilization Article 35 Energy Management

ISO 45001 Certification Ratio of Major Production Bases % 100 100 100

7 Water Resource Utilization Article 36 Water Resource Management

Number of Deaths Caused by Work-Related Injuries Case 0 0 0

8 Circular Economy Article 37 Product Life Cycle Management

Number of Work-Related Injuries (Excluding Deaths) Case 18 53 47

9 Rural Revitalization Article 39

Lost-Time Injury Rate per 200000 Working Hours / 0.235 0.437 0.477 Community Public Welfare

10 Social Contribution Article 40

Number of Lost Days (Including Work-Related Injuries Work-Related

Deaths Occupational Diseases etc.) Day 3414 5220 4696 11 Innovation-Driven Article 42

Number of Occupational Diseases Case 0 0 0 R&D Innovation Product

12 Science and Technology Ethics Article 43 Innovation

Number of Occupational Health and Safety Training Sessions Time 170 252 243

13 Supply Chain Security Article 45

Responsible Supply Chain

Society 14 Equal Treatment of Small and Medium-Sized Enterprises Article 46

15 Product and Service Safety and Quality Article 47 Quality Service

Community Public Welfare 16 Data Security and Customer Privacy Protection Article 48 Information Security

Indicator Unit 2025 2024 2023 Employee Rights

and Interests Talent

Public Welfare Investment Amount RMB 10000 45.31 51.32 195.87 17 Employees Article 50 Development Occupational Health

Number of Public Welfare Service Participants Person 1344 / / and Safety

Public Welfare Service Hours Hour 280 / / Sustainability

Number of Beneficiaries Person 2472 2284 384 18 Due Diligence Article 52

Management Risk

Management Business

Ethics

Sustainability-

Related

Governance 19 Stakeholder Engagement Article 53 Stakeholder Engagement

20 Anti-Commercial Bribery and Anti-Corruption Article 55 Business Ethics

21 Anti-Unfair Competition Article 56 Business Ethics

98 99/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

GRI Sustainability Reporting Standards Index

Disclosure Location Reason for Omission

2-17 Collective knowledge of the highest Sustainability

governance body Management

Instructions for Use Hongyuan Green Energy Co. Ltd. has prepared this report in accordance with GRI Standards

2-18 Evaluation of the performance of the

for the period from January 1 2025 to December 31 2025. highest governance body Corporate Governance

GRI 1 used GRI 1: Foundation 2021 2-19 Remuneration policies Corporate Governance

Applicable GRI Sector None 2-20 Process to determine remuneration Corporate GovernanceStandards

2-21 Annual total compensation ratio Confidential; involves personal employee information not disclosed at this time.

Strategy policies and practices

Reason for 2-22 Statement on sustainable development

Disclosure Location

Omission strategy About Us

GRI 2: General Disclosures 2021 The organizat污io染n a物nd排 it放s r与ep废ort弃in物g p管ra理ctices 2-23 Policy commitments Policy and Commitments

2-1 Organizational details About Us 2-24 Embedding policy commitments Policy and Commitments

2-2 Entities included in the organization's 2-25 Processes to remediate negative

sustainability reporting About This Report impacts

Business Ethics

2-3 Reporting period frequency and contact 2-26 Mechanisms for seeking advice and

point About This Report raising concerns

Stakeholder Engagement

2-4 Restatements of information The Company has updated the 2024 2-27 Compliance with laws and regulations Corporate Governance"Purchased Electricity (gigajoules)"

data in this report primarily due 2-28 Membership associations About Us

to historical data corrections made

during data review. This adjustment Stakehollder engagement

does not affect the relevant

disclosed conclusions. 2-29 Approach to stakeholder engagement Stakeholder Engagement

The Company has also updated the

employee salaries and benefits data 2-30 Collective bargaining agreements Employee Rights

for 2024 and 2023 in this report

primarily due to the update of the GRII 3:: Materiiall Topiics 2021

disclosure statistical scope.

2-5 External assurance Assurance Statement 3-1 Process to determine material topics Material Topics Assessment

Material Topics

Activities and workers Activities and workers 3-2 List of material topics Assessment

2-6 Activities value chain and other business GRII 101:: Biiodiiverrsiitty 2024

relationships About Us

2-7 Employees People-Oriented 3-3 Management of material topics / Not applicable; all company base project

development construction and site

2-8 Workers who are not employees People-Oriented selection are not located within adjacent to

or outside protected natural resource areas

Governance Governance in biodiversity-rich zones.

101-1 Policies to halt and reverse

2-9 Governance structure and composition Corporate Governance biodiversity loss Biodiversity

2-10 Nomination and selection of the highest

governance body Corporate Governance

101-2 Management of biodiversity impacts / Not applicable; all company base project

development construction and site

2-11 Chair of the highest governance body Corporate Governance selection are not located within adjacent to

or outside protected natural resource areas

2-12 Role of the highest governance body in

overseeing the management of impacts Sustainability Management in biodiversity-rich zones.

2-13 Delegation of responsibility for managing 101-3 Access and benefit-sharing Biodiversity

impacts Sustainability Management

2-14 Role of the highest governance body in 101-4 Identification of biodiversity impacts Biodiversity

sustainability reporting About This Report

2-15 Conflicts of interest Business Ethics 101-5 Sites with biodiversity impacts / Not applicable; all company base project

development construction and site

2-16 Communication of critical concerns Stakeholder Engagement selection are not located within adjacent to

or outside protected natural resource areas

in biodiversity-rich zones.

100 101/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Disclosure Location Reason for Omission Disclosure Location Reason for Omission

101-6 Direct drivers of biodiversity loss / Not applicable; all company base project 205-2Communication and training about Business Ethics

development construction and site selection anti-corruption policies and procedures

are not located within adjacent to or outside 205-3Confirmed incidents of corruption and actions taken Business Ethics

protected natural resource areas in biodiversity-

rich zones. GRI 206: Anti-competitive Behavior 2016

101-7 Changes in the state of biodiversity / The Company's business activities are primarily 3-3 Management of material topics Business Ethics

located in industrial parks. Initial screening has

not identified significant dependencies on or 206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Business Ethics

impacts to critical ecosystem services; therefore a

dedicated assessment has not yet been initiated. GRI 207: Tax 2019 GRI 207: Tax 2019

101-8 Ecosystem services / Not applicable; all company base project 3-3 Management of material topics Corporate Governance

development construction and site selection

are not located within adjacent to or outside 207-1 Approach to tax Corporate Governance

protected natural resource areas in biodiversity- 207-2 Tax governance control and risk

rich zones. management Corporate Governance

GRI 201: Economic Performance 2021 207-3 Stakeholder engagement and management of tax-related concerns Corporate Governance

3-3 Management of material topics Value Creation 207-4 Country-by-country reporting / Not applicable; no country-by-country report is available at this time.

201-1 Direct economic value generated

and distributed Value Creation GRI 301: Materials 2016 GRI 301: Materials 2016

201-2 Financial implications and other risks

and opportunities due to climate change Climate Change Response 3-3 Management of material topics Product Lifecycle Management

201-3 Defined benefit plan obligations and

other retirement plans Employee Rights 301-1 Materials used by weight or volume Product Lifecycle Management

201-4 Financial assistance received from

government See Company Annual Report 301-2 Recycled input materials used Product Lifecycle Management

GRI 202: Market Presence 2016 301-3 Reclaimed products and their packaging materials Product Lifecycle Management

3-3 Management of material topics Value Creation GRI302: Energy 2016 GRI302: Energy 2016

202-1 Ratios of standard entry level wage Value Creation 3-3 Management of material topics Energy Management

by gender compared to local minimum

wage 302-1 Energy consumption within the organization Energy Management

202-2 Proportion of senior management / Information is incomplete; there are many 302-2 Energy consumption outside of the Information unavailable; upstream hired from the local community /reporting entities and precise data cannot be organization and downstream category and activity-related energy consumption data have

disclosed at this time. not yet been collected.GRI 203: Indirect Economic Impacts 2016 302-3 Energy intensity Energy Management

3-3 Management of material topics About Us 302-4 Reduction of energy consumption Energy Management

203-1 Infrastructure investments and 302-5 Reductions in energy requirements of

services supported About Us products and services Energy Management

203-2 Significant indirect economic

impacts About Us GRI303: Water and Effluents 2018

GRI 204: Procurement Practices 2016 3-3 Management of material topics Water Resources Management

3-3 Management of material topics Responsible Supply Chain 303-1Interactions with water as a shared resource Water Resources Management

204-1 Proportion of spending on local

suppliers Responsible Supply Chain

303-2 Management of water discharge- Pollutant Emissions and Waste

related impacts Management

GRI 205: Anti-corruption 2016 GRI 205: Anti-corruption 2016 303-3 Water withdrawal Water Resources Management

3-3 Management of material topics Business Ethics 303-4 Water discharge Water Resources Management

205-1 Operations assessed for risks related

to corruption Business Ethics

102 103/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Disclosure Location Reason for Omission Disclosure Location Reason for Omission

303-5 Water consumption Water Resources Management 401-2 Benefits provided to full-time Employee Rights

employees that are not provided to

GRI305: Emissions 2016 GRI305: Emissions 2016 temporary or part-time employees

3-3 Management of material topics Climate Change Response 401-3 Parental leave Employee Rights

305-1 Direct (Scope 1) GHG emissions Climate Change Response GRI402: Labor/Management Relations 2016

305-2 Energy indirect (Scope 2) GHG

emissions Climate Change Response 3-3 Management of material topics Occupational Health and Safety

305-3 Other indirect (Scope 3) GHG / Information unavailable; other indirect 402-1 Minimum notice periods regarding Not applicable; this information is emissions /(Scope 3) GHG emissions data have not operational changes not relevant.

yet been collected. GRI403：Occupational Health and Safety2018

305-4 GHG emissions intensity Climate Change Response 3-3 Management of material topics Occupational Health and Safety

305-5 Reduction of GHG emissions Climate Change Response 403-1 Occupational health and safety management system Occupational Health and Safety

305-6 Emissions of ozone-depleting / Not applicable; the organization's 403-2Hazard identification risk assessment substances (ODS) processes products and services and incident investigation Occupational Health and Safety

do not involve ozone-depleting

substances (ODS) emissions. 403-3 Occupational health services Occupational Health and Safety

305-7 Nitrogen oxides (NOX) sulfur oxides Pollutant Emissions and

(SOX) and other significant air emissions Waste Management 403-4 Worker participation consultation Occupational Health and Safetyand communication on occupational health

GRI306: Effluents and Waste 2016 and safety

306-3 Significant spills Pollutant Emissions and 403-5 Worker training on occupational Waste Management health and safety Occupational Health and Safety

GRII306:: Waste 2020 GRI306: Waste 2020 403-6 Promotion of worker health Occupational Health and Safety

3-3 Management of material topics Pollutant Emissions and Waste Management 403-7 Prevention and mitigation of Occupational Health and Safety

306-1 Waste generation and significant Pollutant Emissions and occupational health and safety impacts

waste-related impacts Waste Management directly linked by business relationships

306-2 Management of significant waste- Pollutant Emissions and 403-8 Workers covered by an occupational

related impacts Waste Management health and safety management system Occupational Health and Safety

306-3 Waste generated Pollutant Emissions and Waste Management 403-9 Work-related injuries Occupational Health and Safety

306-4 Waste diverted from disposal Pollutant Emissions and Waste Management 403-10 Work-related ill health Occupational Health and Safety

306-5 Waste directed to disposal Pollutant Emissions and Waste Management GRI404: Training and Education 2016

GRI308: Supplier Environmental Assessment 2016 3-3 Management of material topics Talent Development

3-3 Management of material topics Responsible Supply Chain 404-1 Average hours of training per year per employee Talent Development

308-1New suppliers that were screened Responsible Supply Chain 404-2Programs for upgrading employee using environmental criteria skills and transition assistance programs Talent Development

308-2 Negative environmental impacts in the

supply chain and actions taken Responsible Supply Chain 404-3 Percentage of employees receiving Talent Developmentregular performance and career

GRI401:: Employment 2016 GRI401: Employment 2016 development reviews

3-3 Management of material topics Employee Rights GRII 405:: Diiversiity and Equall Opportuniity 2016

401-1 New employee hires and employee / Information unavailable; the Company turnover has not collected this data. 3-3 Management of material topics Employee Rights

405-1 Diversity of governance bodies and

employees Employee Rights

405-2 Ratio of basic salary and remuneration Not applicable; involves personal

of women to men employee information not disclosed

at this time.

104 105/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

Disclosure Location Reason for Omission Disclosure Location Reason for Omission

GRI406: Non-discrimination 2016 GRI414: Supplier Social Assessment 2016

3-3 Management of material topics Employee Rights 3-3 Management of material topics Responsible Supply Chain

406-1 Incidents of discrimination and 414-1New suppliers that were screened

corrective actions taken Employee Rights using social criteria Responsible Supply Chain

GRI407: Freedom of Association and Collective Bargaining 2016 414-2 Negative social impacts in the supply chain and actions taken Responsible Supply Chain

3-3 Management of material topics Employee Rights GRI415: Public Policy 2016 GRI415: Public Policy 2016

407-1 Operations and suppliers in which Employee Rights 3-3 Management of material topics / Not applicable; the countries where the

the right to freedom of association and organization operates do not involve

collective bargaining may be at risk political contributions.GRI408: Child Labor 2016 GRI408: Child Labor 2016 415-1 Political contributions / Not applicable; the countries where the

organization operates do not involve

3-3 Management of material topics Employee Rights political contributions.

408-1 Operations and suppliers at Employee Rights GRI416: Customer Health and Safety 2016

significant risk for incidents of child

labor 3-3 Management of material topics Quality Service

GRI409: Forced or Compulsory Labor 2016 416-1 Assessment of the health and safety impacts of product and service categories Quality Service

3-3 Management of material topics Employee Rights 416-2 Incidents of non-compliance Quality Service

concerning the health and safety impacts of

409-1 Operations and suppliers at Employee Rights products and services

significant risk for incidents of forced or

compulsory labor GRI417: Marketing and Labeling 2016

GRI410: Security Practices2016 3-3 Management of material topics Quality Service

3-3 Management of material topics / Information unavailable; the Company has 417-1 Requirements for product and service not collected this data. information and labeling Quality Service

410-1 Security personnel trained in / Information unavailable; the Company has 417-2 Incidents of non-compliance human rights policies or procedures not collected this data. Quality Serviceconcerning product and service information

GRI411: Rights of Indigenous Peoples 2016 and labeling

3-3 Management of material topics Not applicable; production bases are 417-3 Incidents of non-compliance concerning marketing communications Quality Service

not established in areas inhabited by

indigenous peoples. GRI418: Customer Privacy 2016

411-1 Incidents of violations involving Not applicable; production bases are 3-3 Management of material topics Business Ethics

rights of indigenous peoples not established in areas inhabited by

indigenous peoples. 418-1 Substantiated complaints concerning Business Ethics

breaches of customer privacy and losses of

GRII413:: Locall Communiitiies 2016 customer data

3-3 Management of material topics Community Welfare

413-1 Operations with local community Community Welfare

engagement impact assessments and

development programs

413-2 Operations with significant actual Not applicable; no operations have actual

and potential negative impacts on local or potential significant negative impacts

communities on local communities.

106 107/ HONGYUAN Green Energy Co. Ltd. Appendix / 2025 Environmental Social and Governance Report

SASB Industry Standards Index

Issue Code Disclosure Details Location Issue Code Disclosure Details Location

Energy RR-ST-130a.1 Total energy consumed Energy Management Percentage of products sold that are recyclable or PV modules are

Management in reusable mainly composed

Manufacturing Purchased electricity consumed Energy Management of glass aluminum

Percentage of purchased electricity in total energy and semiconductor

consumption Energy Management materials; theoretically

Renewable energy consumed Energy Management up to 80% by weight is

recyclable12Percentage of renewable energy in total energy . Due to the

consumption Energy Management long product lifecycle

Water RR-ST-140a.1 Total water withdrawn Water Resources large-scale recycling Management

Management in data have not yet been

Manufacturing Total water consumed Water Resources Management established.Percentage in areas with high or extremely high baseline

water stress / RR-ST-410b.2 Weight of end-of-life materials recovered Waste Management

RR-ST-140a.2 Description of water management risks strategies and Water Resources practices to mitigate these risks Management Total weight of end-of-life materials Waste Management

Hazardous RR-ST-150a.1 Hazardous waste generated Waste Management Percentage recovered Waste Management

Waste

Management Percentage of hazardous waste recycled Waste Management RR-ST-410b.3 Percentage of products (by revenue) containing IEC Not applicable; the

62474 declarable substances arsenic compounds Company's products

RR-ST-150a.2 Number of reported hazardous waste spills Waste Management antimony compounds or beryllium compounds do not involve these substances

Total volume of reported hazardous waste spills Waste Management RR-ST-410b.4 Description of methods and strategies for designing products for high-value recovery Waste Management

Volume of hazardous waste recovered from spills Waste Management Material Sourcing RR-ST-440a.1 Supply chain risk categories Responsible Supply Chain

Ecological RR-ST-160a.1 Number of project delays related to ecological impacts Biodiversity Activity Metrics RR-ST-000.A Total capacity of PV modules manufactured Green Manufacturing

Impacts

in Project Duration of project delays related to ecological impacts Biodiversity RR-ST-000.B Total installed capacity of solar systems Green Manufacturing

Development

RR-ST-160a.2 Efforts made in solar system project development to address community and ecological impacts Biodiversity

Managing Energy RR-ST-410a.1 Risks of integrating solar energy into existing energy Climate Change

Infrastructure infrastructure and efforts to manage these risks Response

Integration RR-ST-410a.2 Risks and opportunities related to energy policy and Climate Change

and Related their impact on integrating solar energy into existing Response

Regulations infrastructure

Product RR-ST-410b.1 Weight of products sold that are recyclable or reusable The Company's

End-of-Life main product is PV

Management modules with capacity

(MW) as the primary

Total products sold measurement unit;

weight-based statistics

have not yet been

compiled.

12 This recoverable rate is referenced from the technical report Status of PV Module Recycling in IEA PVPS Task 12 Countries

2025 published by Task 12 of the IEA Photovoltaic Power Systems Programme (IEA PVPS Task 12).

108 109/ HONGYUAN Green Energy Co. Ltd.

110