Zhejiang E-P EquipmentCo.Ltd.Address: Xiaquan Village Lingfeng Subdistrict Anji County Huzhou City Zhejiang Province
Email: epir@ep-ep.com
Postal Code: 313300
Fax: 0572-5333958
Phone: 0572-5333958About This Report 01 Lean Governance
Report Overview 01
Basis for Preparation 01 21 Corporate Governance
Scope of the Report 01 24 Protection of Investor Rights
Accessing the Report 02 25 Compliance
28 Business Ethics
Contact Information 02 01
33 Data Security and Customer Privacy Protection
Message from the Chairman 03 Environmental Stewardship
37 Addressing Climate Change
About EP 05 39 Environmental Compliance Management
Company Profile 05 42 Energy Utilization
Corporate Culture 05 45 Water Resource Utilization
46 Emissions and Waste
EP. Milestones 2025 07
48 Circular Economy
Annual Honors 09
49 Green Office 02
50 Clean Production
Sustainability Governance 11
Sustainability Strategy 13 Industry Empowerment
Sustainability Action Plan 13
EP ESG Management 14 53 Special Topic: Green Manufacturing Creating Premium Products
Stakeholder Engagement 17 56 Product Safety and Quality
Materiality Assessment 18 60 Customer Service and Management
63 Innovation-Driven Development
65 Intellectual Property Protection 03
66 Responsible Supply Chain
Improving People’s Livelihoods
Appendices to the Report 83 71 Employee Rights and Benefits
75 Employee Training and Development
Key Performance Indicators 83 77 Occupational Health and Safety
Index Table 90 79 Social Contribution
Reader Feedback Form 92 81 Industry Development 04
82 Rural Revitalization
Contents01 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 02
About This Report
Report This report is the first ESG report published by Zhejiang E-P EquipmentCo.Ltd. You may obtain the English electronic version of this report from the Shanghai (hereinafter referred to as “EP”or “the Company”). Adhering to the principles of Obtaining the Stock Exchange website (www.sse.com.cn).Overview objectivity standardization transparency and comprehensiveness it provides a detailed disclosure of the specific measures key practices notable cases Report
and key performance related to actively fulfilling social responsibilities and
promoting sustainable development in 2025. The report aims to strengthen
communication and engagement with stakeholders and assist the Company
in better fulfilling its social responsibilities.Sources of Data All information and data in this report are derived from the Company’s previously disclosed periodic reports or interim announcements as well as
in This Report environmental social and governance information compiled aggregated and reviewed by the Company. Unless otherwise noted this report uses the
Renminbi as its currency.Basis of This report has been prepared in accordance with the relevant requirements of the Shanghai Stock Exchange’s Guideline No. 14 on Self-Regulatory
Preparation Supervision of Listed Companies—Sustainability Reporting (Trial) with reference to the topics addressed in the GRI Standards (2021 Edition)
published by the Global Reporting Initiative (GRI) and in conjunction with
the United Nations Sustainable Development Goals (SDGs). It focuses on
disclosing the Company’s practices and achievements in the areas of
environment social responsibility and corporate governance. This report
was prepared in accordance with the principles of materiality quantification
balance and consistency. Contact Address: Xiaquan Village Lingfeng Subdistrict Anji County Huzhou City Zhejiang Province
Information Email: epir@ep-ep.com
Postal Code: 313300
Fax: 0572-5333958
Phone: 0572-5333958
Scope of the Organizational scope: Unless otherwise specified the scope of information disclosed in this report covers Zhejiang E-P EquipmentCo.Ltd. (Parent
Report Company: Factory premises at Xiaquan Village Tianhuangping North Road Anji County; hereinafter the same) and its subsidiaries.Time Scope of the Report: The data contained in this report covers the period
from January 1 2025 to December 31 2025 (hereinafter referred to as the
“Reporting Period”). To ensure the continuity of the report certain content or
data has been presented retrospectively or prospectively.03 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 04
Message from the Chairman
To our partners investors colleagues and all friends who care about EP’s development: Ultimately a company’s value lies in the growth and safety of its people. The company deeply understands that only by
safeguarding every employee can we secure the future of the enterprise. In 2025 the company continued to strengthen its
occupational health and safety management system signed safety responsibility agreements at all levels and invested RMB
32 million to advance automation upgrades ensuring the safety of frontline employees through “separation of humans andAs you open this report EP stands at a milestone-marking new starting point. In December 2024 the company listed on the machinery.” Throughout the year the company conducted 88 safety training sessions reaching 5739 participants. CoverageMain Board of the Shanghai Stock Exchange. This not only affirms our decade-long journey of “product-driven development rates for on-site testing of occupational hazard factors and occupational health examinations both reached 100% and theand innovation-led transformation” but also signifies a weighty responsibility—as a publicly listed company we must company achieved a record of safe production with no major work-related injuries. In terms of talent development the
respond to the expectations of all stakeholders with greater transparency. 2025 marks the concluding year of the 14th Five- company has established a comprehensive full-cycle talent development system conducting 517 training sessions of various
Year Plan and represents EP’s first comprehensive sustainability report since going public. Through this report the company types throughout the year; We have established a dual-track promotion mechanism for management and professional roles
demonstrates to the world how the DNA of sustainable development is deeply embedded in its strategic fabric and publish an annual list of key personnel and support employees in obtaining vocational skill certifications ensuring that every
transformed into concrete actions that drive growth and lead change. hardworking individual can see a clear path for growth. Innovation cannot thrive without talent support. The company will
continue to increase R&D investment cultivate more high-level scientific and technological talent through platforms such as
Looking back on our journey every milestone EP has achieved stems from our steadfast commitment to our founding mission: postdoctoral workstations and provincial-level enterprise research institutes and refine an incentive system closely linked to
“Making material handling simpler and greener.” In 2012 the launch of the “Little Golden Warrior” propelled the industry from project performance ensuring that every innovative idea is respected and rewarded.manual handling into the electric era freeing up millions of workers worldwide and becoming synonymous with electric
material handling; In 2020 the company pioneered “internal combustion to electric” conversion technology unifying the Corporate Governance: Making Compliance the Cornerstone of EP’s Development. The company firmly believes that sound
chassis of internal combustion and electric vehicles making the transition of over 4 million existing internal combustion forklifts governance is the cornerstone for a company’s steady and sustainable growth. In 2025 the company continued to optimize
to electric power possible and accelerating the greening process of the forklift industry in China and globally. It is precisely its governance structure—comprising the Board of Directors and its four subordinate committees—to ensure scientific
these innovations that have forged the solid foundation of the company’s “Green Intelligent and Digital” strategy—the core decision-making and effective execution. The company adheres to the principles of truthful accurate complete and timely
of the company’s competitiveness and the confidence to weather economic cycles and achieve steady long-term progress. information disclosure maintaining effective communication with investors through various channels such as earningsAs we stand at the historic juncture marking the conclusion of the 14th Five-Year Plan the seeds of innovation sown years ago briefings and investor hotlines. At the same time the company deeply embodies its corporate culture of “working hard andhave grown into a lush forest: in 2025 annual revenue reached RMB 7.254 billion and the company has ranked first in China staying on the right path” integrating compliance management and risk prevention into its systems and processes. We
for the production and sales of electric warehouse forklifts for 12 consecutive years (Source: Industrial Vehicles Branch of the have established a closed-loop audit system covering the entire process from procurement to production sales and R&D
China Construction Machinery Industry Association; ranking as of December 31 2024). This achievement not only responds to and have streamlined channels for integrity reporting and supervision via the Chairman’s Hotline. Through transparent
the national strategic call for a greener and smarter logistics industry but also embodies the company’s solemn commitment standardized and integrity-driven governance practices we safeguard the company’s high-quality development. The
to “becoming a Chinese enterprise respected worldwide.” company will further refine its ESG governance framework deeply integrate sustainable development into decision-making
processes launch a pilot program for supply chain carbon footprint management and collaborate with partners to jointly
In 2025 the company made solid progress across the three dimensions of environment society and governance. The build a green transparent and responsible industrial ecosystem.company firmly believes that green development is not a cost but an investment—a vision for the future and a commitment
to our founding principles. For many years EP has consistently embedded social responsibility into the very fabric of its corporate development. In the
field of education the company continues to support the development of the School of Mechanical Engineering at Southwest
Energy-saving transformation: making green the foundation of EP’s development. From product design to production Jiaotong University contributing to talent cultivation and technological innovation within the industry; In terms of local public
operations the company integrates green principles into every stage of the process. In the circular economy sector the welfare the company has made ongoing donations to charitable associations in Anji Hangzhou Jiangyin and other regions
company continues to advance “trade-in” programs and high-standard remanufacturing operations giving new life to to support rural revitalization and community development; during emergencies the company has responded immediately
existing internal combustion forklifts through compliant remanufacturing and restoring value to resources through recycling. by donating epidemic prevention supplies to the front lines of the pandemic response conveying EP’s warmth throughIn terms of products the company offers a full range of electric material handling vehicles from 0.6 to 35 tons. Its high-voltage concrete actions. Drops of kindness converge into a river—this is the company’s simple yet sincere practice of “taking fromlithium-ion battery solutions which offer “the same price as diesel models but outperform internal combustion engines” society and giving back to society.”
meet the demands for zero emissions and long-range operation. Regarding energy applications the company’s installed
photovoltaic capacity reaches 16.63 megawatts generating 9.1 million kilowatt-hours annually; clean energy is becoming a Looking ahead the industrial transformation from “material handling” to “intelligent mobility” is accelerating. The company will
vital force driving factory operations. New energy forklifts account for 100% of the fleet on-site and the green logistics system continue to advance its “fuel-to-electric” conversion and remanufactured vehicle initiatives breathing new life into existing
is advancing steadily. internal combustion forklifts through compliant remanufacturing. We will actively plan fuel-vehicle replacement solutions for
overseas markets extending EP’s green practices globally while exploring the application of energy storage technologies and
In operations the company has implemented meticulous management throughout all processes. Regarding water resource a higher proportion of green electricity to further integrate clean energy into the fabric of production. In the field of intelligent
management 100% of wastewater meets discharge standards; the four painting lines have achieved tiered water reuse; and solutions the company is strategically deploying smart material handling across three levels: product model and system.the total capacity of the rainwater collection system reaches 450 cubic meters effectively reducing fresh water consumption. Through the “Digital Intelligence Brain (DAS) + Full Range of Bama Robots” we are driving the evolution of smart materialIn terms of exhaust gas treatment the painting workshop employs advanced processes to ensure full compliance with handling from isolated scenarios to end-to-end coverage. We are achieving a breakthrough from zero to one with “Digitalstandards while also exploring waste heat recovery models to minimize energy waste. From source to end the company Intelligence Flying Warehouses” in overseas markets redefining the boundaries of efficiency in warehousing and logistics with
safeguards the environment through pragmatic actions. Chinese ingenuity.Innovative talent nurturing EP’s future with wisdom and hard work. Guided by the principles of “precision accuracy rigor and This report is the answer all EP employees give to the present and a commitment to the future. EP is committed to workingattention to detail” the company implements a “5-level” quality control system. Multiple electric material handling products with all partners to fulfill our responsibilities through hard work and honor the trust placed in us through innovation as we
have been awarded the “Zhejiang Province Manufacturing Single Champion” title and the long-range highly integrated jointly write a green chapter in the new era of logistics!
electric material handling vehicle project received the “Zhejiang Province Special Equipment Science and Technology Award.”
The company will continue to increase investment in robotics to drive the transformation of material handling operations
toward intelligent and unmanned operations. Zhejiang E-P EquipmentCo.Ltd.Chairman: He Jinhui05 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 06
About EP
Company Profile
EP is a global technology enterprise driven by product innovation EP's Development Philosophy
and transformation dedicated to building Industrial Logistics 4.0.The company specializes in the development manufacturing and Products Drive Development;
servicing of electric warehouse forklifts intelligent material handling Innovation Leads Change
robots and forklifts providing global users with green intelligent and
digital material handling solutions.In 2012 EP launched its compact electric material handling Leading the way toward a
equipment—the EP Little Giant series—globally winning the prestigious green smart and digital
international awards “Red Dot Design Award” and “iF Design Award.” future—from material handling
This milestone redefined product history catalyzing a paradigm shift in to intelligent mobility
the industry from manual to electric material handling. Since then EP
has expanded to operate production bases spanning over 1000 acres
globally (including Anji Zhejiang; Jingjiang Jiangsu; Fuyang Hangzhou;
Xiangyang Hubei; and Wisconsin USA). Leveraging its product
excellence and the first-mover advantage of early global expansion
EP has established itself as an internationally competitive advanced
forklift brand.EP will continue to uphold its founding vision of “making materialhandling simpler and greener for humanity” and remain committed to
its mission of “becoming a Chinese enterprise respected worldwide.”
Building on the foundation laid by the “Little Golden Warrior” in driving
the industry’s transition from manual to electric material handling
we will fully promote the green upgrade from diesel to electric
power. We will also implement a three-tiered strategy for intelligent
material handling—at the product model and system levels—to bring
intelligent solutions to thousands of enterprises and factories. Our goal
is to create “Industrial Logistics 4.0” in the era of Industry 4.0 leading
the way toward a future of green intelligent and digital operations—
transforming material handling into smart mobility.Corporate Culture
Core Values
EP’s rapid growth would not have
been possible without the strong
support of our global customers
employees distr ibutors and
suppliers. Our goal is to evolve
together and grow together.07 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 08
Major Events at EP in 2025
March 2025 May 2025 June 2025 August 2025 September 2025 September 2025 November 2025 December 2025
EP Forklift’s after-sales service EP and Eternal Force have EP Hosts the 7th Annual EP Fully Supports the 2025 EP Europe Robotics EP Investment invested EP Hosts the 10th Global EP will vigorously advancelaunched its intelligent entered into a strategic Innovation Conference on China University Students' Marketing Center Opens in Xingyuan Intelligence Double 11 Conference its “Second-Generationcustomer service system partnership to jointly advance 629 and the 5th Forklift Safety Mechanical Engineering Accelerating Europe’s Digital Robotics aiming to conquer Focusing on the Forklift Operator” talent
getting a head start on the innovation and application Day Innovation and Creativity Transformation the pinnacle of intelligent Development of Robotics development program
competition in smart internal logistics Competition—Logistics forklift robotics and Intelligent Material using digital and
technology Technology Innovation Handling Technologies to intelligent skills training
Contest Promote Industry Exchange combined with real-
and Cooperation world market experience
to inject new momentum
into the digital and
intelligent transformation
of the material handling
industry
March 2025 June 2025 June 2025 September 2025 September 2025 November 2025 December 2025BIGJOE the premium EP's 7th Annual Innovation EP launched the “Second- EP Makes a Grand Debut EP and Chengdu EP Chairman’s Hotline EP Marks Its First Anniversarybrand under EP made a Launch Conference for 629 Generation Forklift” Talent at the BICES Exhibition Qingbaijiang have signed Launched: Listening to as a Publicly Traded
grand debut at ProMat Concluded Successfully Development Program to in Beijing Driving the a cooperation agreement Every Voice with a Focus on Company
2025 with its high-quality jointly embrace a digital Digital and Intelligent for the Unmanned Logistics Efficiency and Results
warehouse equipment and intelligent future Transformation of Science and Technology
full lineup of lithium-ion Global Logistics Through Innovation Park project to
forklifts and revolutionary Technological Innovation promote the industrialization
smart material handling of smart logistics
equipment technologies and build an
innovation ecosystem for the
smart logistics industry09 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 10
Annual Honors
Huzhou Golden Bull Enterprise Award Laohekou City Award for Outstanding Outstanding Case in the Alcohol 2025 Industry Influence Outstanding Enterprise Ten Years of Glory 2025 New Quality
Contributions to Employment Supply Chain Award in the Survey of · Mobile Robot Productivity Digital and
Large-Scale Private Engineering Intelligentization Leader
Enterprises Application Exemplar Case Award
AwardDeppon Express “2025 Technological Zhejiang Provincial Special Zhejiang Export Brand Hubei Brand Value Certificate 25th Annual Anji Charity Master of Intelligent Excellence LeadershipInnovation Award” Equipment Science and One-Day Donation Stacking Architecture Award
Technology AwardZhejiang Province Manufacturing 2025 Hubei Province 2025 Hubei Province Green 2025 IFOY “Warehouse Truck 2025 Model Service 2025 Anji County “Two 2024 Anji County 2024 Top TaxpayerSingle-Champion Award Specialized Refined Factory of the Year” — EP Automated Award Mountains” Eagle Enterprise Listing Award
Unique and Innovative Guided Vehicle Enterprise Award
SME11 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 12
01
Sustainability Governance
Aligned with the United Nations Sustainable Development Goals
Key Issue
Sustainable Development Management13 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 14
Sustainable Development Strategy EP ESG ManagementGuided by the National Economic and Social Development Plan Outline and driven by its mission to “make material handlingeasier” EP is fully advancing its strategy to make its products greener smarter and more digital. The company actively fulfills
its social responsibilities safeguards the environment and is committed to creating sustainable value for its stakeholders ESG Governance
while promoting high-quality development in the industry.The company has established a three-tier ESG management framework clearly defining the division of responsibilities at each
level. By continuously advancing ESG management practices we are constantly improving corporate governance standards
and sustainable development performance.Sustainable Development Action Plan The Strategy Committee
serves as the highest
Board of Directors decision-making body for the company’s ESG initiatives
ensuring the establishment
of ESG management policies
Strengthening Foundations Collaboration and Sharing Strategy Nomination Compensation and Audit objectives and major decisions
Committee Committee Evaluation Committee Committee regarding ESG management
and achieving the intended
outcomes.* Leveraging our strengths in new energy we * We will continuously optimize supply chain
are expanding our lineup of green material admission and management mechanisms
handling equipment to achieve full coverage encourage key suppliers to adopt low-
of electric material handling solutions ranging carbon production and process upgrades Each business unit is responsible Reporting Delegation
from 0.6 to 35 tons. and collaborate to reduce carbon emissions for managing and executing ESG-related matters ensuring
intensity across the industrial chain. the implementation of the
* Focusing on high-voltage lithium-ion battery Office of the Chairman company’s ESG objectives and
technology innovation we will drive material
advancements and intelligent control to create * Establish an ESG compliance review
the execution of ESG initiatives.solutions that offer "the same price as internal and assessment mechanism for the
combustion engines while outperforming them supply chain to regularly identify and
in performance." manage suppliers’ environmental and social responsibility risks Reporting Coordination Each business unit is responsible
thereby fostering a more sustainable for managing and executing ESG initiatives ensuring
supply chain system.Staying True to Our Business Units
the implementation of the
company’s ESG goals and the
Roots While Innovating execution of ESG initiatives.* We will enhance our global
production and service network
* Continuously increasing promote green logistics equipment
investment in robotics R&D to and green technology solutions To further strengthen the effectiveness of ESG governance the company has established a mechanism linking ESG
achieve full-scenario coverage and empower global supply chain performance to executive compensation. Key performance indicators across the three dimensions of environment
ranging from automated partners to achieve sustainable society and governance have been incorporated into the annual evaluation system for senior management with these
guided vehicles (AGVs) to development. metrics accounting for 20%–30% of executive performance-based compensation.Through an incentive and accountability
intelligent loading/unloading mechanism that “rewards excellence and penalizes underperformance” the company encourages management to
and industrial intelligent picking proactively integrate ESG considerations into decision-making thereby forming a closed-loop ESG governance system
robots. Advancing the full-chain characterized by “strategic leadership—organizational support—performance-driven evaluation.”
implementation of intelligent
customer service for sales after- Giving Back to Stakeholders
Weight
sales and leasing to build the Environment 40% Social 35% Governance 25%
smart warehouse of the future.* Giving Back to Employees: Improve the employee
health management system prioritize talent
development foster a diverse and inclusive workplace Carbon emission intensity energy Employee labor contract signing Board independence
optimize compensation and incentive mechanisms consumption intensity pollution control rate social security contribution effectiveness of ESG Green Empowerment and build a diverse and inclusive workplace. compliance rate environmental compliance rate occupational committee operations
protection investment fulfillment rate health and safety incident rate internal control
* Giving Back to Society: Participate in public welfare proportion of revenue from green employee satisfaction supply compliance anti-
* We are committed to advancing green office initiatives support rural revitalization and achieve products number of penalties for chain ESG compliance audit corruption enforcement
practices clean production and circular a harmonious and mutually beneficial relationship environmental violations and incidence rate product quality and safety timeliness and accuracy
economy management. By refining our between the company and society. rate of sudden environmental incidents. compliance rate data breach of information disclosure
energy management systems and resource incident rate. and robustness of
utilization mechanisms we reduce energy * Giving Back to Shareholders: Maintain reasonable ESG risk management
consumption and resource waste during investment returns and uphold the continuity and systems.production and operations while improving stability of our profit distribution policy.resource efficiency.Operational Level Management Level Decision-making Level15 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 16
Mechanism Linking ESG Performance to Executive Compensation
Conduct risk analysis combining qualitative and quantitative approaches based on the
dimensions of likelihood of occurrence and severity of impact
Performance-Based Linked to Mid-to-Long- Retroactive Adjustment
Compensation Calculation Term Incentives Veto Scenarios Mechanism 2 Determine risk levels using a risk matrix and an expert review mechanism
Achieve the challenge Unlocking conditions: Major environmental pollution If falsification 3 Classify risks into three categories: material risks significant risks and general risks
target1: Evaluation ESG performance is or ecological damage incidents of prior-period
coefficient 1.0–1.2 a prerequisite for the resulting in administrative ESG data or 4 Produce the "ESG Risk Assessment Report" 02
with an additional unlocking or vesting penalties or significant negative concealment of
increase in ESG-linked of equity incentives social impact; major risk incidents
compensation; and term-based is discovered after
incentives; Major production safety or the assessment
Achieve the Challenge occupational health incidents 1year retroactive Implement differentiated management strategies based on risk levels:
Target2: Evaluation Disqualification: If ESG resulting in casualties or deductions
coefficient 1.0 full performance fails to significant property damage; will be made Major Risks: Implement avoidance or mitigation strategies and strengthen controls through environmental technology
payment of ESG-linked meet the benchmark from ESG-linked upgrades improvements to supply chain codes of conduct and the development of emergency response plans
compensation; for two consecutive Major labor disputes supply compensation
years during the chain ESG scandals or product already paid Significant Risks: Implement effective control strategies to reduce risk levels through regular monitoring targeted
Achieve the benchmark term eligibility for quality and safety incidents that and relevant corrective actions and management optimization ensuring risks remain within manageable limits
value3: Evaluation the current mid-to- trigger a public relations crisis or executives will be
coefficient 0.6–0.9; ESG- long-term incentive is legal litigation; held accountable General Risks: Establish monitoring plans to ensure risks remain manageable
linked compensation revoked; to ensure the
paid proportionally; False omitted or misleading authenticity
Additional Rewards: statements in ESG disclosures and rigor of the
Failure to meet the resulting in penalties from Fully integrate ESG requirements into key business processes such as procurement contracts If ESG performance assessment. 2 03
baseline: Evaluation remains consistently regulatory authorities;
investment decisions and project approvals
coefficient 0–0.5 outstanding during
with ESG-linked the term additional Major incidents of corruption
compensation reduced rewards will be commercial bribery or illegal
proportionally down to granted upon exercise. business operations that harm Establish a tiered early warning mechanism and define key early warning indicators such as carbon 1
a minimum of 0. the company’s interests and emission intensity employee complaint rates and supply chain compliance violation rates
reputation.
2 Implement dynamic monitoring based on three levels: red (major) orange (significant) and yellow (minor)
3 Each business unit shall conduct routine self-inspections
4 The lead department organizes a comprehensive assessment on a quarterly basis
ESG Risk Management 5 Conduct annual special audits to ensure timely responses to dynamic changes in risk 04
The company has established an ESG risk management system covering the entire business chain integrating environmental
social and governance-related risks into the comprehensive risk management framework. A closed-loop management
mechanism of “identification—assessment—response—monitoring—improvement” has been established to ensure that ESG
risks are preventable controllable and traceable. ESG Training
ESG Risk Management Mechanism
To continuously enhance ESG management capabilities the company has
established a tiered and categorized ESG training system covering the Board of
Based on industry characteristics and operational realities the company has developed an ESG risk
1 Directors management and core business personnel promoting the deep integration
inventory covering the three dimensions of environment society and governance: of ESG principles with business practices.ESG Specialized Training
Environmental Risks: Focusing on carbon emissions exceeding limits pollution discharge resource
consumption environmental compliance penalties and changes in climate policies training focuses on ESG strategic awareness and major risk management. Through expert lectures and
Senior policy briefings it strengthens the executive team’s understanding of ESG governance trends regulatory
Social Risks: Focusing on employee rights protection labor issues in the supply chain product safety data management requirements and international standards thereby enhancing the foresight and compliance of strategic
privacy breaches and community impact decision-making.Governance Risks: Covering board independence regulations on related-party transactions anti-
corruption failures and violations of disclosure requirements centers on risk identification assessment and response processes. By integrating the company’s ESG Mid-level management systems and utilizing case studies it enhances the execution capabilities and collaborative
training efficiency of functional departments and business units in ESG management.Employ a variety of methods including surveys on-site inspections and data
monitoring to identify ESG risks
emphasizes job-specific ESG requirements and compliance procedures. Through various methods—including
3 Compile an annual "ESG Risk Identification List" 01 Frontline online courses on-site guidance and risk alert cards—it ensures that frontline employees understand their training responsibilities regarding energy conservation pollution prevention workplace safety and data protection
thereby driving the implementation of ESG requirements in daily operations.1Challenge Target: Exceed industry-leading targets. 2Target: Achieve the annual targets set. 3Baseline: Meet compliance and regulatory requirements.Risk Identification
Risk Monitoring and
Early Warning Risk Response Risk Assessment17 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 18
Stakeholder Engagement Double materiality assessment ?
EP places great importance on regular communication with stakeholders. The company has established a multidimensional EP identifies and organizes this year’s material issues from multiple perspectives taking into account disclosure standards
two-way communication mechanism to continuously collect and integrate expectations and feedback from all parties capital market concerns and the characteristics of its industry and business operations.through diverse channels providing strong support for improving ESG management standards and sustainable development
performance. Key Performance:
Stakeholders Focus Areas Communication Channels and Formats The results of the 2025 materiality assessment are presented in the matrix below. The assessment identified 5
issues that are both financially and non-financially material to the company 2 issues that are only financially
* Policy Implementation
* Compliance material and 9 issues that are only non-financially material.Government * Qualification Review* Anti-Corruption
and Regulatory * Disclosure
Authorities * Environmental Management * Site Visits
* Waste Management
* Compliant Discharge
* Occupational Health and
Safety * Workplace Safety Management Innovation-Driven Development
* Employee Training and * Employee Training Product and Service Safety and Quality
Employees Development * Employee Activities Anti-Unfair Competition
Sustainability Management Pollutant Emissions Occupational Health and Safety* Employee Care * Labor Union and Employee Waste Management
* Protection of Employee Rights Representative Assembly
Protection of Employee Rights
Social Contribution
Water Resource Utilization
Data Security and Customer Privacy Protection
Stakeholder Energy Utilization Supply Chain Security
* Product Quality and Safety * Customer After-Sales Service Engagement
Customers * Customer Service * Customer Satisfaction Survey
Anti-Commercial Bribery and Anti-Corruption
Due Diligence Climate Change Response
* Information Security and * Strengthening Product Quality Employee Training and DevelopmentCircular Economy
Privacy Protection Management Environmental
Rural Revitalization Compliance
Management
Equal Treatment of Small and
Medium-Sized Enterprises
* Responsible Supply Chain * Supplier Audits
* Raw Material Procurement * Supplier Code of Conduct
Suppliers and
Partners * Compliance * Industry Trade Shows
* Fulfilling Obligations in * University-Industry
Accordance with the Law Collaboration
Financial materiality
* Investor Hotline
* ESG Governance * SSE e-Interaction
Environment Society Governance
Shareholders and * Financial Performance * Regular Information Disclosure
Investors * Compliance * On-site Research Climate Change Response Rural Revitalization Due Diligence
* Anti-Corruption * Shareholders' Meeting Waste Management Social Contribution Stakeholder Engagement
* Risk Management Pollutant Emissions Innovation-Driven Development Anti-Commercial Bribery and
Equal Treatment of Small and Anti-CorruptionEnvironmental Compliance
* Regular Communication and Management Medium-Sized Enterprises Sustainability Management
Media and Non- * ESG Governance Reporting
Governmental Energy Utilization Supply Chain Security Anti-Unfair Competition
* Product Quality and Safety * News CoverageOrganizations Water Resource Utilization Product and Service Safety and Quality
* Media Interviews
Circular Economy Data Security and Customer
Privacy Protection
* Volunteer Activities
* Rural Revitalization Protection of Employee RightsCommunity and Charity and Philanthropy
Public * Social Welfare Employee Training and Development*
* Rural Revitalization Occupational Health and Safety
? Explanation of Issues Not Identified 1. Ecosystems and Biodiversity: The Company’s core business and production and operations do not involve nature reserves ecological red line areas or
ecosystems of significant biodiversity. The Company’s production and operations have no material impact on ecosystems and biodiversity and risks related to the protection of ecosystems
and biodiversity do not have a material impact on the Company’s financial performance. Upon assessment this issue is not financially material or materially impactful to the Company
and is therefore not disclosed in this report. 2. Technology Ethics: The Company’s core business and production and operational activities do not involve technological fields currently under
intense scrutiny in technology ethics such as artificial intelligence algorithmic recommendations big data analysis or gene editing. Nor do they involve related risks such as animal ethics or
information ethics. Upon assessment this issue is neither financially material nor materially impactful to the Company and is therefore not disclosed in this report.Impact materiality19 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 20
02
Lean Governance
Aligned with the United Nations Sustainable Development Goals
Key Issues
Due Diligence
Stakeholder Engagement
Anti-Bribery and Anti-Corruption
Anti-Unfair Competition
Data Security and Customer Privacy Protection21 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 22
Corporate Governance
Board of Directors
EP strictly adheres to the requirements of laws regulations and normative documents such as the Company Law of the
People’s Republic of China the Securities Law of the People’s Republic of China and the Guidelines for the Governance of
Listed Companies. The company has established a sound corporate governance system clearly defining the boundaries
of responsibilities and operational mechanisms for decision-making execution and supervision. These principles are EP strictly adheres to the provisions of the Articles of Association Rules of Procedure for Board Meetings Regulations on the
institutionalized through the Articles of Association and various rules of procedure to ensure the company’s operations are Work of Independent Directors and the Code of Conduct for Directors and Senior Management to establish and continuously
compliant transparent and efficient. improve a diversified management system for the Board of Directors empowering the Company’s sustainable development
through diverse perspectives.Corporate Governance Structure
Shareholders’ Meeting Exercises decision-making authority on major corporate matters in accordance with the law. Board Composition and Diversity Initiatives
Board of Directors Makes decisions regarding the company’s overall development direction and major operational The Company’s Board of Directors consists of eight directors including three independent directors and one employee matters and reports its work to the Shareholders’ Meeting. representative director. The number and composition of the Board comply with legal regulatory and supervisory
requirements. In selecting directors the Company emphasizes diversity in membership structure systematically considering
Responsible for implementing Board resolutions organizing the execution of annual business multi-dimensional factors such as gender age professional background industry experience and knowledge and skills.Management plans and investment proposals and ensuring the effective implementation of the company’s Currently Board members possess diverse professional backgrounds in law finance management and technology providing
strategy. rich perspectives and professional support for the Company’s strategic decision-making.The company actively promotes
gender diversity on the Board is committed to providing long-term development opportunities for female employees and
continuously monitors and increases the proportion of female directors. Currently there are two female directors accounting
for 25% of the Board members which fully demonstrates the company’s achievements and ongoing commitment to gender
diversity.Shareholders' Meeting Strategy Committee
Director Selection and Performance Safeguard Mechanisms
Audit Committee
Board of Directors The company has established standardized and transparent director selection procedures and employs a multi-dimensional
Compensation and Evaluation Committee mechanism to ensure that directors can exercise their duties independently professionally and efficiently.Management Nomination Committee
Corporate Governance Structure
Organizational Support Guarantees of Independence Training Support
Shareholders' Meeting A Board of Directors Office Independent directors Regular specialized training
has been established constitute more than one- on laws regulations and
staffed with dedicated third of the board; they ESG topics is conducted
EP places a high priority on protecting the legitimate rights and interests of shareholders ensuring that the decision-making personnel to provide recuse themselves from to continuously enhance
process for major matters is transparent standardized and traceable. The company strictly convenes and holds shareholders’ professional support for voting on related-party directors’ performance
meetings in accordance with the provisions of the Articles of Association and the Rules of Procedure for Shareholders’ directors in the performance matters thereby effectively capabilities.Meetings safeguarding the equal rights of all shareholders—especially small and medium-sized shareholders—and ensuring of their duties. serving as a check and
they fully exercise their voting rights. At the same time the company offers a combination of in-person meetings and online balance.voting to create favorable conditions for shareholders to conveniently participate and effectively exercise their rights.Key Performance:
Key Performance:
During the reporting period the Company convened a total of 4 Shareholders’ Meetings. The procedures for convening
and holding the meetings the eligibility of attendees and the voting results were all lawful and valid and the Company During the reporting period EP held a total of 8 board meetings deliberated and approved 47 resolutions and no
fulfilled its information disclosure obligations regarding the resolutions in a timely manner. violations of board decision-making procedures occurred.23 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 24
Board Effectiveness Assessment Protection of Investor Rights
The Company has established a scientific and systematic mechanism for evaluating Board effectiveness continuously
driving the Board’s self-improvement and enhanced performance. The Board has established the Audit Committee Strategy
Committee Nomination Committee and Compensation and Evaluation Committee. Each specialized committee has
formulated implementation rules that clearly define responsibilities authorities and deliberation procedures. During intervals
between Board meetings these committees fully leverage their professional expertise to provide preliminary review and
professional support for decision-making thereby forming a closed-loop governance system with effective checks and
balances among decision-making execution and oversight.Stakeholder Engagement
Board Effectiveness Evaluation Mechanism
The Company continuously improves its investor relations management mechanisms. In accordance with the Investor
Relations Management System the Board Secretary serves as the head of investor relations management while the Board
Office coordinates daily communication matters. Through diverse channels such as the investor relations section on the
The Company conducts systematic Independent directors submit annual Company’s official website the SSE e-Interaction platform the investor hotline and email the Company promptly responds to
evaluations of the Board’s composition performance reports to the Annual General investor inquiries strengthens two-way communication and is committed to building long-term stable investor relationships.meeting operations strategic engagement Meeting detailing their attendance at Board
risk monitoring and communication with and committee meetings voting records
management through methods such as and matters of dissent throughout the year Key Performance:
questionnaires and interviews. The evaluation thereby accepting shareholder oversight with
focuses on the timeliness of strategic transparency.discussions director engagement the During the reporting period the Company conducted a total of investor engagement activities hosted approximately
constructiveness of debates the effectiveness 16
of interactions and the impact of cultural 200 investors and answered 58 investor questions on the SSE e-Interaction platform achieving a 100% response behaviors.rate to investor inquiries.Key Performance:
During the reporting period the Compensation and Evaluation Committee held 1 meeting.Performance Evaluation of Directors and Senior Management Information Disclosure Management
The Company has established and continuously improved performance evaluation and compensation management systems
for directors and senior management using scientific and transparent evaluation mechanisms to drive improvements in The Company has established and implemented a series of regulations including the Information Disclosure Management
performance effectiveness. In accordance with regulations such as the Implementation Rules of the Board’s Compensation System Internal Reporting System for Material Information Insider Information Registrant System and Management System
and Evaluation Committee the Company formulates evaluation criteria reviews compensation policies and organizes and for Deferral and Exemption of Information Disclosure. These regulations comprehensively cover all stages—from information
implements evaluations. It integrates evaluation results with compensation incentives and appointments/removals from generation review and disclosure to deferral exemption insider information registration and accountability—ensuring the
office to form an effective incentive and accountability mechanism thereby strengthening directors’ and senior executives’ compliance and transparency of information disclosure.As the person in charge of information disclosure the Board Secretary
sense of diligence and responsibility as well as their long-term value orientation. coordinates information disclosure matters and regulatory communications establishing a disclosure management
mechanism with clear responsibilities and standardized processes.Key Performance:
During the reporting period the Company issued 4 periodic disclosure reports and 62 interim announcements.No administrative penalties were imposed for violations related to information disclosure.25 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 26
Compliant Operations
Risk Control Management
All employees at EP remain steadfast in their commitment to the Chairman’s directive to “uphold the bottom line.” By In accordance with the Criteria for Identifying Internal Control Deficiencies the company distinguishes between internal
continuously improving the internal control system strengthening risk management and deepening the culture of controls over financial reporting and those over non-financial reporting establishing separate quantitative and qualitative
compliance the company has fostered a deep integration of regulatory enforcement and compliance awareness thereby criteria for identifying deficiencies. Through a closed-loop process of identification assessment response and monitoring risk
laying a solid foundation for the company’s standardized operations and sustainable development. management is integrated into daily operations.Risk Control Management
Internal Control System
Key Areas Key Business Areas:
The Company has established a risk and internal control organizational structure with the Board of Directors as the highest
decision-making body the Audit Committee as the core supervisory body and the Internal Audit Department as the executive Focusing on core areas such as strategic Based on the EP Employee Bottom Line
body. In particular the Audit Committee assumes supervisory responsibilities for risk management and internal control decision-making investment management Management Manual clear management
in accordance with the Implementation Rules of the Board of Directors’ Audit Committee and serves as the Company’s external guarantees related-party bottom lines are established covering
specialized committee responsible for risk management.Concurrently the Company has formulated and implemented a transactions contract management cash dimensions such as operations product
series of regulations including the Internal Audit System and the Criteria for Identifying Internal Control Deficienciesto ensure flow activities procurement and sales quality and safety production safety and
that the internal control system covers core business areas such as procurement production sales finance and contracts and information disclosure the company environmental protection. Risk management
thereby establishing an internal control mechanism with clear responsibilities and efficient operations. systematically identifies key risk points control requirements are embedded into business
objectives control measures and responsible processes to ensure that business operations
Risk and Internal Control Mechanism departments. This forms a comprehensive comply with regulatory standards and the risk control matrix with clear responsibilities company’s value orientation.ensuring risks are identifiable manageable
and traceable.Bears ultimate responsibility for the establishment improvement and effective
implementation of the internal control system. It reviews the annual internal control
Board of evaluation report urges management to implement corrective measures and supervises
Directors major internal control deficiencies and improvement efforts to ensure that the company’s
decision-making on major matters complies with laws regulations and internal
authorization management requirements.Key Performance:
During the reporting period the Company completed risk identification and assessment in key areas such as procurement
As the specialized committee responsible for risk management the Audit Committee management sales management cash management and contract management. No material or significant deficiencies
supervises and inspects the operation of internal controls in accordance with the were identified in internal controls over financial reporting or non-financial reporting.Audit Implementation Rules of the Board of Directors Audit Committee. It reviews financial
Committee reports and matters related to internal controls receives work reports from the internal
audit department provides feedback on the results of internal control self-assessments
and reports relevant information to the Board of Directors thereby fulfilling its professional
oversight role.In accordance with the annual audit plan the department conducts internal audits and
special inspections supervising and evaluating key areas such as financial management
Internal fund utilization procurement and sales and related-party transactions and reports
Audit the audit results to the Audit Committee; it proposes corrective measures for identified
Department issues and tracks their implementation promoting the establishment of a closed-loop
management mechanism of “inspection—feedback—correction.”
Key Performance:
During the reporting period the Audit Committee held 7 meetings to review the Company’s financial information and
disclosure matters and to oversee internal and external audit work.27 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 28
Compliance Culture Development Business Ethics
Through various methods such as policy dissemination case studies and training programs the company has deeplyinstilled a compliance mindset in every employee fostering a positive atmosphere where “everyone emphasizes complianceand every action adheres to the rules.”
Anti-Commercial Bribery and Anti-Corruption
Case Policy Briefing on General Administration of Customs Announcement No. 194 of 2025
EP maintains a “zero-tolerance” stance toward commercial bribery and corruption. The company strictly adheres to laws and
regulations such as the Criminal Law of the People’s Republic of China and the Anti-Unfair Competition Law. It has established
a comprehensive anti-fraud management system covering all employees and all business processes. By strengthening
Focusing on General Administration of Customs Announcement institutional controls enhancing risk management ensuring open reporting channels and deepening a culture of integrity the
No. 194 of 2025 the company conducted a specialized training company continuously reinforces its integrity defenses fostering a clean and upright business environment that supports thesession titled “Interpretation of the Customs Voluntary Disclosure company’s standardized operations and sustainable development.System and Latest Policies” systematically outlining key changes
such as the conditions for voluntary disclosure adjustments to
the time limits for penalty waivers optimizations to inspection
and quarantine procedures and extensions of validity periods. Anti-Corruption Management System and Policies
The training combined practical business scenarios to analyzethe application of the “retroactive application of the more lenientprovision” principle. Through typical case studies it helped customs The Company has established a comprehensive anti-corruption management system designating the Board of Directors
documentation and compliance personnel understand policy as the highest decision-making body for anti-fraud efforts the Audit Committee as the body responsible for overseeing
highlights master operational procedures and implement risk the implementation of anti-fraud systems and the Internal Audit Department as the body responsible for the day-to-day
prevention measures thereby further enhancing the level of import execution of anti-fraud work.In accordance with the Internal Audit System and the Criteria for Identifying Internal Control
and export compliance management. Deficiencies the Company treats anti-fraud as a key objective of internal control and focuses on identifying and examining
potential fraudulent activities during internal audits. Through systematic institutional design and multi-tiered oversight
mechanisms the Company continuously strengthens integrity risk prevention and control to ensure the legality and
compliance of its business and management activities.Case Policy Briefing on the Customs Administrative Penalty Discretionary Benchmarks (II) Key Performance:
During the reporting period EP did not face any litigation related to anti-corruption or business ethics.The company organized a specialized training session on
Customs Administrative Penalty Discretionary Benchmarks
and Compl iance Responses providing a systematic
interpretation of the revision background core rules and Anti-Corruption Management Measurespractical application of the “Customs Administrative PenaltyDiscretionary Benchmarks (II).” Through this training customs
sales and compliance management personnel gained a
deeper understanding of customs administrative penalty * In accordance with the EP Employee Conduct Guidelines and relevant company management
discretionary rules enhanced their ability to identify and regulations the Company has established clear boundaries for employee conduct and
address compliance risks in import and export operations and business operations. It strictly prohibits dereliction of duty abuse of power embezzlement
provided a strong foundation for the company to conduct Regulatory disclosure of confidential information and soliciting or accepting bribes. The regulations
cross-border trade in a standardized manner. Constraints explicitly stipulate that “amounts reaching RMB 5000 or more” constitute significant harm;
* Illegal acts such as bribery contract fraud insider trading and financial fraud are strictly
prohibited.Disciplinary * For any conduct that crosses these boundaries the company will unconditionally terminate the employment contract and reserve the right to pursue corresponding legal liability thereby
Action establishing a powerful institutional deterrent.Audit * Anti-fraud measures are incorporated as a priority in internal audits. During the audit process potential fraudulent activities are systematically monitored and examined to ensure that fraud
Oversight risks are promptly managed.29 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 30
Whistleblowing and Complaints Anti-Unfair Competition
The company has established diverse and accessible reporting and complaint channels encouraging employees suppliers
and other partners to report suspected fraud bribery and other misconduct. The company places high priority on protecting
the rights of whistleblowers. Throughout the process of receiving reports conducting investigations and providing feedback The company strictly adheres to laws and regulations such as the Anti-Monopoly Law of the People’s Republic of China and
on outcomes we strictly enforce confidentiality requirements to prevent whistleblowers from suffering adverse consequences the Anti-Unfair Competition Law of the People’s Republic of China establishing an anti-unfair competition management
as a result of their reports. system that covers all employees and all business operations. By improving institutional controls strengthening risk
management and deepening compliance training the company continuously standardizes market conduct maintains a
Reporting and Complaint Channels fair and competitive market order and safeguards the company’s sustainable development through honest and compliant
business practices.Audit Office Office of the Chairman
Anti-Monopoly and Fair Competition Management System and Policies
* Hotline: 0571-28878696 * Supervision Hotline: 15669917920
* Supervision Email: epjd@ep-ep.com * Supervision Email: 12345@ep-ep.com The Company has established a comprehensive anti-unfair competition management system designating the Board of
Directors as the highest decision-making body for compliance management the Audit Committee as the body responsible
* Mailing Address: Zhejiang EP Audit Office for overseeing the implementation of relevant systems and each business department as the first line of defense for
(Attn:) No. 121 Yonghua Street Gongshu compliance management. The Company integrates anti-unfair competition requirements into core business processes such
District Hangzhou as procurement sales and marketing and ensures the legality and compliance of market competition practices through
institutionalized management and oversight mechanisms.* Postal Code: 310000
Antitrust and Fair Competition Management Measures
The counterfeiting of registered trademarks and patents is strictly prohibited;
Anti-Corruption and Anti-Bribery Training The sale of goods bearing counterfeit registered trademarks is prohibited;
The company integrates integrity principles into corporate culture development and employee training systems continuously Do not infringe upon trade secrets or illegally obtain state secrets;
enhancing all employees’ compliance awareness and integrity through multi-level diverse training activities
Damaging the commercial reputation or product reputation of others is prohibited;
Case Training on the Implementation of the Employee Handbook and the EP Employee Boundary Management Handbook
It is prohibited to forge the seals of companies enterprises public institutions or people’s organizations.The company organized a company-wide special training session on "Upholding the Bottom Line Walking the Path
of Compliance" focusing on the systematic dissemination of the core content of the EP Employee Bottom Line
Management Manual.The training covered five key dimensions: employee conduct business operations product
quality and safety production safety and environmental standards. Through case studies scenario simulations and
interactive Q&A sessions employees gained a deep understanding of the threshold that defines “significant harm” (i.e.amounts reaching RMB 5000 or more) and learned specific methods for identifying and mitigating risks in their daily
work.31 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 32
Antitrust and Fair Competition Risk Management Antitrust and Fair Competition Training
The company systematically identifies key risk points in key areas such as pricing practices market division transaction The company integrates anti-unfair competition compliance principles into its employee training system. Through various
conditions and abuse of market dominance and establishes targeted control measures to ensure that risks are identifiable methods such as policy dissemination and case studies we continuously enhance all employees’ awareness of fair
manageable and traceable. competition and compliance literacy.Antitrust and Fair Competition Risk Identification and Control Measures Case Specialized Training on Antitrust and Fair Competition
In 2025 the Company’s Legal Department organized specialized
Price Monopolization * Strictly enforce pricing laws and regulations; product pricing is training on antitrust and fair competition for personnel from sales
Pricing Price Fraud and Collusive determined independently based on cost and market factors; procurement marketing and management. The training systematically
Practices Pricing reviewed the latest amendments to the Antitrust Law and the Anti-* Prohibit price-fixing alliances or bid-rigging with competitors. Unfair Competition Law. By integrating industry and business realities
it interpreted key provisions such as monopoly agreements and abuse
of market dominance and provided compliance risk warnings for high-
risk scenarios including sales pricing customer allocation and bidding.Through regulatory briefings case studies and on-site Q&A sessions the
training enhanced participants’ ability to identify antitrust risks and raised
their awareness of fair competition. It reinforced their commitment to
Market Division * Conduct sales activities in accordance with market principles; do compliant business operations and contributed to the creation of a fair
Market Restriction of Sales not enter into agreements with competitors to divide markets or and transparent market competition environment.Division Territories or Customer customers;
Segments * Sales policies must be open and transparent to all customers.Tying Sales or Imposing * Contract terms must be reviewed by the legal department or
Terms of Unreasonable external counsel to ensure that transaction conditions are fair and
Sale Transaction Conditions reasonable;
* Do not use a dominant market position to force tie-in sales.* Strictly enforce intellectual property protection regulations and
Intellectual Counterfeiting prohibit the counterfeiting of registered trademarks and patents;
Property Trademarks and Patents Infringement of Trade * Sign confidentiality agreements with employees and partners to
Secrets prevent the disclosure of trade secrets.Damaging the
Commercial commercial reputation * Adhere to the principles of objectivity and truthfulness in
Defamation of competitors marketing; do not fabricate or disseminate false information to damage the reputation of competitors.* Strictly enforce bidding management regulations to ensure that
Bidding and Bid-rigging and the bidding process is open fair and impartial;Tendering
Practices Bid-rigging Collusion * Collusion with bidders or the disclosure of confidential information
is strictly prohibited.33 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 34
Data Security and Customer Risk Management
Privacy Protection The company employs institutionalized and systematic control measures to conduct continuous screening and response
regarding critical assets system vulnerabilities and external threats ensuring that data security and customer privacy
protection are integrated throughout the entire process of technical system development and access rights management.EP strictly complies with laws and regulations such as the Cybersecurity Law of the People’s Republic of China the Data
Security Law of the People’s Republic of China and the Personal Information Protection Law of the People’s Republic of
China as well as the Information Security Management System Requirements (ISO/IEC 27001:2022) standard. The company
has established implemented and continuously improved its information security management system to ensure the Key Performance:
confidentiality integrity and availability of information.In 2025 the company identified a total of 191 critical assets. For high-risk items the company formulated the Information
Security Risk Management Plan and implemented security measures item by item; all risks have been reduced to an
acceptable level;
System Development During the reporting period the company experienced no major information security incidents or significant data
breaches.The Company has formulated and implemented the Information Security Management Manual along with relevant
management systems and security policies clearly defining the overall objectives and control requirements for information
security management. To ensure the effective operation of the system the Company has established an Information Security
Task Force led by the General Manager and spearheaded by the Information Technology Department with designated Information Security Risk Management
information security officers under its purview who are fully responsible for the development and daily operation of the
information security management system.Key Performance
* Define information security policies roles and responsibilities and QMS Quality Management System: Assigns a unique serial number to each product
implement management accountability; enabling the binding of products to serial numbers via scanning. This facilitates rapid
During the reporting * Establish liaison mechanisms with relevant functional units and specific traceability of key information such as production batches process flows and inspection period the Company
Organizational stakeholders; results ensuring the security and traceability of product data.successfully obtained ISO/
IEC 27001:2022 Information Controls * Conduct threat intelligence management and integrate information
Security Management security requirements into project management; Technical
System certification. * Establish an asset inventory and standardize asset classification grading System
and acceptable use. Development
DAS Intelligent System: Utilizing intelligent robots and standard carriers this system
dynamically updates the digital status of goods and integrates collaborative
management platforms across production supply and demand ends. It encompasses
* Conduct rigorous pre-employment screening and clearly define terms and WMS SRM QMS MES and digital twin modules to ensure the security of data flow.conditions of employment;
* Conduct ongoing information security awareness education and training;
Personnel
Controls * Standardize procedures for handling violations and clarify responsibilities
following termination or changes in employment;
* Enforce security agreements strengthen remote work security management
and establish an information security incident reporting mechanism.All system access permissions are requested through the OA workflow and approved on a
need-to-know basis;
* Establish physical security perimeters and enhance security protection for Customer
offices rooms and facilities; Privacy
ISO/IEC 27001:2022 * Implement physical security monitoring to guard against physical and Protection
Information Security Physical environmental threats;
Management System Controls * Standardize storage media management ensure proper equipment Regular system permission reviews are conducted to ensure
Certification placement and maintenance enforce desktop and screen cleanup the rationality of permission allocation and adherence to the
requirements and ensure the security of assets outside organizational principle of least privilege effectively preventing the risk of
premises. customer information leaks.* Strengthen user endpoint device and privileged access controls to protect
source code security;
* Implement capacity management malware prevention and technical
Technical vulnerability management;
Controls * Standardize configuration management data deletion data de-
identification and anti-leakage measures;
* Establish information backup and log monitoring mechanisms to ensure
the traceability of security incidents.35 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 36
03
Ecological Stewardship
Aligned with the United Nations Sustainable Development Goals
Key Issues
Addressing Climate Change
Environmental Compliance Management
Energy Use
Water Resource Utilization
Waste Management
Pollutant Emissions
Circular Economy37 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 38
Climate Change Response Climate Risk and Opportunity Management
EP employs a systematic risk management model to identify and assess climate risks and opportunities across the upstream
midstream and downstream segments of the value chain ensuring that potential environmental impacts are effectively
addressed. For different risk types the company conducts in-depth analyses of high-priority distinctive climate risks and
opportunities and qualitatively evaluates the potential impact of climate factors on the company’s operations across three
Climate Change Management time horizons: short-term (2026) medium-term (2030) and long-term (2050).The company has integrated climate risk management into its ESG organizational structure continuously improving internal Risk and Time Impact
management mechanisms to enhance the effectiveness of climate governance. The company has incorporated greenhouse Opportunity Types Risk Drivers Key Impacts Horizon Severity Countermeasures
gas emission reduction targets into daily operations focusing on optimizing the energy mix and improving energy efficiency
and is comprehensively advancing the implementation of emission reduction initiatives.Improve the emergency
Production response plan system
Climate Change Initiatives Frequent extreme
weather events disruptions Physical Risks facility damage Short-
strengthen emergency
(e.g. heavy rain term Medium drills and source control
Category Initiative Implementation Results typhoons) supply chain [See: Environmental disruptions Emergency Management
section]
Construction of distributed solar With an installed PV capacity of 16.63 MW and an annual Clean Energy photovoltaic power plants on the roofs total power generation of 9.1 million kWh this initiative Application of park facilities effectively reduces reliance on conventional power sources and cuts Scope 2 carbon emissions
Rising Promoting clean energy Tighter carbon
Commissioned 4 powder coating lines emission policies compliance
substitution and green
Green Process Mid- process transformation to
Upgrades with the powder curing process utilizing
This reduces energy waste associated with indirect
(e.g. carbon taxes costs and term High reduce carbon intensity
a direct heating mode heating and conserves natural gas consumption carbon trading) pressure from carbon quotas [See: Energy Utilization and Clean Production sections]
Low-Carbon Signed a Safety and Environmental Working Together to Build a Green Low-Carbon Supply
Collaboration in Management Agreement with key Chain Ecosystem and Promote Collaborative Emissions
the Supply Chain suppliers Reduction Across the Industry Chain Transition Risks
Focus on lithium-ion
Increased Declining battery technology
customer and product innovation and green
market demand competitiveness Medium product design to develop
2025 Greenhouse Gas Emissions Data for low-carbon restricted market term
High zero-emission solutions
products access [See: Clean Production and Circular Economy
Indicators Unit 2025 subsections]
Scope 1 tons of CO2 equivalent 2954 Promote photovoltaic
Reducing power generation and
Scope 2 tons of CO2 equivalent 5767.62 Technological Development energy costs
the purchase of green
of clean energy and increasing Medium High electricity optimize the Opportunities technologies energy self- Term energy mix and increase
sufficiency the share of clean energy
Total greenhouse gas emissions Scope 1 + Scope 2 8721.62 [See: Energy Utilization
section]
Greenhouse gas emissions tons of CO2 equivalent per million in
intensity revenue 1.20 Promote green
product design and
environmentally friendly
Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.Market Growing market
Expanding low-risk processes to
Opportunities demand for green
market share Long-
and increased term High meet market demand products brand premium for low-carbon solutions [See: Clean Production
and Circular Economy
sections]
Improved Implement "reduce reuse
Policy Circular Economy resource Short- and recycle" initiatives
Opportunities Policy Support utilization to promote resource efficiency and term Medium recycling [See: Circular
waste reduction Economy section]39 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 40
Environmental Compliance Management
Environmental Management Framework
EP strictly adheres to the Environmental Protection Law of the People’s Republic of China and relevant laws and regulations.The company integrates environmental compliance management into the core of its corporate governance and through an
environmental protection target accountability system and performance evaluations ensures that environmental strategies
are effectively cascaded down to each business unit guaranteeing the successful implementation of environmental As the chief executive responsible for environmental protection the Chairman
protection objectives. leads the formulation of environmental policies guidelines and strategies; ensures that the environmental management system is integrated into the company’s
business processes; and promotes the development of an environmental
Environmental Management Policy management culture.Decision-
Making
Level
Green Transportation Beautifying the Environment: Promote green transportation reduce exhaust emissions and The Equipment and Environmental Protection Department as the coordinating
beautify the human environment management unit implements national laws and regulations as well as the
Management company’s environmental management requirements coordinates and
Compliant Operations and Continuous Improvement: Adhere to laws and regulations ensure environmental supervises the environmental protection work of all departments and subsidiaries
compliance and continuously improve environmental performance and organizes compliance assessments and the implementation of objectives.Environmental Management Objectives and Achievement Status Operational Level Each functional department carries out specific environmental protection
tasks implements environmental requirements executes control measures for
Indicators and Targets Achievement Status significant environmental factors manages the daily operation and maintenance
of environmental protection facilities and promptly reports any environmental
Compliant Discharge of Three Wastes Completed anomalies.No administrative penalties for environmental violations Completed
Rate of Rectification of Environmental Hazards ≥99% Completed Environmental Management Process
Environmental emergency drills and training Completed
Identification and Periodically identify and evaluate environmental factors in the company’s
Assessment of activities products and services; determine significant environmental factors
Environmental Factors and establish control measures.Establishment of Environmental Management System
Based on the environmental policy significant environmental factors and
The company adheres to the ISO 14001:2015 standard establishing and continuously improving its environmental management Goal Setting and compliance obligations establish annual environmental management
system. It has developed a comprehensive set of policies covering the Environmental Management Regulations Air Pollution Management Plan objectives and plan specific implementation measures resource requirements
Prevention and Control Management System Noise Pollution Prevention and Control Management System Solid Waste and completion deadlines.Management System Water Pollution Prevention and Control Management System Energy Conservation and Low-Carbon
Management Regulations and Environmental Baseline Management Guidelines. These policies systematically integrate
environmental management requirements into all business processes ensuring standardized and institutionalized operations
in environmental management.Operational Control and Implement daily monitoring and control of significant environmental factors
Key Performance Emergency Preparedness establish emergency response plans and regularly organize drills and reviews
As of the end of the reporting period 100% of the company’s headquarters and finished
product manufacturing subsidiaries have obtained ISO 14001 Environmental Management
System certification.Monitor key environmental characteristics; assess the effectiveness of the
Monitoring Inspection system through internal audits and management reviews; and implement
and Improvement corrective and preventive actions for nonconformities.ISO 14001 Environmental
Management System Certification41 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 42
Environmental Emergency Management Energy Utilization
EP strictly adheres to laws and regulations such as the Law of the People’s Republic of China on Responding to Emergencies
integrating environmental risk management into daily operations and strategic decision-making. During the reporting
period the company did not experience any environmental violations or receive any administrative penalties related to EP has established an energy management organization led by the Equipment and Environmental Protection Department
environmental protection. to coordinate the efficient use of energy across the company. Through the establishment of sound energy management
systems the implementation of energy-saving upgrades and the promotion of clean energy applications the company is
continuously advancing the efficiency and low-carbon nature of its energy use.Improving the Institutional Framework and Strengthening the Management Foundation Energy Consumption Data for 2025
The company has established the Emergency Response Plan for Environmental Incidents which organizes and Type Unit 2025
formulates contingency plans for potential emergencies and accidents. It clearly defines the complete process forinformation reporting response grading and on-site handling and establishes the response principle of “control firstthen treat; prioritize saving lives; minimize losses.” Natural Gas 10000 cubic meters 140
Purchased electricity 10000000 kWh 1087
Dynamically Identifying Environmental Factors to Achieve Source Control Solar power generation 10000 kWh 910
Green electricity used 10000 kWh 757
The company regularly identifies and evaluates environmental factors associated with its operations products
and services with particular consideration given to abnormal situations and reasonably foreseeable emergencies.Specialized contingency plans are developed for potential emergencies and accidents clearly defining the complete Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.processes for information reporting response grading and on-site handling.Strengthen Plan Development and Drills to Enhance Emergency Response Capabilities
The company regularly conducts emergency response drills to strengthen safety and civilized production Energy Management System and Policies
management thereby enhancing employees’ awareness and practical capabilities in handling sudden environmental
incidents.The company has established an end-to-end energy management system that clarifies organizational structure and division
of responsibilities to ensure the orderly advancement of energy conservation and low-carbon initiatives. A dedicated Energy
Conservation and Low-Carbon Management Task Force has been formed led by the General Manager with heads of business
units and functional departments serving as deputy leaders. The Equipment and Environmental Protection Department acts
Case Environmental Pollution Incident Emergency Drill as the lead managing department supported by full-time and part-time energy managers thereby establishing a three-tier
control system encompassing “decision-making management and execution.”
Energy Management System
In 2025 the company organized a specialized emergency drill for
hazardous waste leaks with over 20 participants from the Equipment Policy Development Supervision and Evaluation
and Environmental Protection Department and the Coating Business
Division. The drill simulated a scenario where improper handling during
the storage of waste mineral oil caused a drum to tip over resulting in
an oil spill.On-site personnel immediately reported the incident to the * The Company has formulated and implemented the * Implement a dual supervision mechanism
Emergency Command Center which swiftly activated the emergency Energy Conservation and Low-Carbon Management combining routine inspections with special audits
response plan. The emergency response team rushed to the scene Regulations to systematically standardize energy conduct regular energy conservation and low-
established a cordoned-off area righted the overturned drums and usage practices across various dimensions carbon audits and perform follow-up evaluations
used sawdust to cover and absorb the spill. The oil-contaminated including planning management procurement on key processes and projects.sawdust was properly stored in the hazardous waste warehouse management contract management data
following cleanup and corresponding records were completed management equipment operation management * Through a closed-loop management process
simultaneously. The drill demonstrated a rapid overall response and office area management and production process involving problem analysis the formulation
standardized procedures effectively validating the feasibility of the management; of improvement measures and effectiveness
emergency plan and the personnel’s practical capabilities.Following the evaluation continuously optimize the energy Promote digital transformation by establishing an
drill the company organized a debriefing and evaluation. Addressing * management system and drive the deepening of
the coordination issues identified during the exercise the company energy and carbon emissions data management energy conservation efforts.further clarified roles and responsibilities and continued to refine the platform to enable real-time monitoring and
emergency coordination mechanism. precise analysis of electricity water and gas consumption data thereby providing data support
for energy-saving decisions;
* Establish and improve an energy conservation
and low-carbon incentive and accountability
mechanism linking the achievement of energy
conservation targets to departmental and
individual performance evaluations to strengthen
accountability.43 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 44
Energy Management Goals and Planning Energy Conservation Initiatives
Based on actual production and operational conditions and in line with industry trends the company scientifically formulates The company continues to advance energy-saving and consumption-reduction projects across the entire organization
annual energy management goals and implementation pathways to ensure that energy conservation and carbon reduction focusing on clean energy substitution equipment energy optimization process upgrades and management improvements.efforts are quantifiable and actionable. Key progress and achievements in 2025 are as follows:
2026 Energy Conservation Targets: Progress on Key Energy-Saving Projects in 2025
Using 2025 energy consumption data as a baseline the company has set electricity consumption targets for key Key Areas Implementation Progress and Quantifiable Results
departments below the 2025 average aiming for an overall reduction of 700000 kWh in electricity consumption * Distributed solar photovoltaic power stations were constructed on the rooftops of factory
and 50000 cubic meters in natural gas consumption. Clean Energy buildings within the industrial park vigorously promoting the application of green solar
Substitution power. In 2025 the installed capacity of solar power generation reached 16.63 MW with a total annual electricity generation of 9.1 million kWh effectively reducing reliance on
conventional power and lowering Scope 2 carbon emissions.Differentiated Electricity Consumption Control Targets for Key Departments
* Actively promoting the green transformation of coating processes four powder coating
Green Process Upgrades lines have been put into operation. The powder curing process adopts a direct heating
Department 2025 Average Electricity 2025 Average Energy 2026 Cost Control Target mode reducing energy waste from indirect heating stages conserving natural gas Consumption Target (RMB/unit) Consumption Target (kWh/unit) (RMB/unit) consumption and lowering carbon emissions during production.Painting and
Powder Coating 3.18 4.12 3.2 * All general-purpose energy-consuming equipment complies with national energy
Department 25-Year Average Electricity Cost 25-Year Average Energy
Energy-Efficient efficiency standards. High-energy-consumption equipment is strictly configured to meet
(RMB/unit) Consumption Target (kWh/unit) Cost Control Target (RMB/unit) Equipment Optimization Class II energy efficiency standards or utilizes variable frequency control to ensure optimal
operational efficiency.Painting 20.70 28.23 21
25-Year Average Electricity Cost 25-Year Average Energy * We have established a mechanism for monitoring electricity consumption targets at key Department (RMB/kWh) Consumption Target Cost Control Target (RMB/kWh) Digital Monitoring and energy-consuming units implementing real-time monitoring and dynamic analysis of
Control energy consumption. Any anomalies are promptly investigated and rectified empowering
Lithium Battery 1.19 0.62 1.2 refined energy management through digital tools;Department
Department Average Electricity Cost to Output 25-Year Average Energy Cost Control Target (Electricity Cost/ * All on-site transport vehicles are 100% new energy forklifts; 90% of off-site transport vehicles Ratio for 2025 Consumption (kWh/10000 RMB) Output Value Ratio) Emissions Reduction for meet National V emission standards or higher;
Structural Operational Vehicles
Department 0.587% 59.06 0.60% * Company shuttle buses use new energy electric buses comprehensively advancing the
development of a green logistics system.Department 25-Year Average Electricity Cost 25-Year Average Energy (CNY/unit) Consumption (kWh/unit) Cost Control Target (RMB/unit)
Electric Forklift
Department 25.05 34.75 26
Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.
2026 Energy Conservation Implementation Plan
Key Areas 2026 Energy Conservation Plan
* Expand energy storage projects adding 1165 kWh of storage capacity in the
South District and 3495 kWh in the North District; finely adjust the charging and
discharging schedules of energy storage systems to fully utilize solar power and
off-peak electricity thereby conserving power resources;
Equipment Energy Efficiency * Advance energy-saving retrofits for natural gas water heaters; plan to adopt
Optimization methods such as heat recovery from air compressors to improve the utilization
rates of natural gas and electricity.* Strengthen real-time electricity consumption monitoring dynamically optimize
capacity and demand management increase patrols adjust electricity usage
strategies during holidays and reduce unnecessary power consumption losses.Digital Monitoring and Control45 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 46
Water Resource Utilization Emissions and Waste
EP strictly adheres to the requirements of the Water Law of the People’s Republic of China the Regulations on Water EP strictly adheres to national and local environmental laws and regulations implementing standardized management
Conservation and relevant local water resource management regulations integrating water resource management into daily throughout the entire process for exhaust gases wastewater and solid waste to ensure that all pollutants are discharged in
operational monitoring. During production and business operations the company’s primary water source is municipal water compliance with standards and that waste is disposed of in accordance with regulations.supply with water usage covering production and manufacturing employee living needs and landscape irrigation. Key data
on the company’s water resource utilization for 2025 is as follows:
Water Consumption Data for 2025 Air Emissions Management
Indicator Unit 2025
The company systematically identifies and classifies air emissions generated during production activities. During the reporting
Water Consumption tons 87068 period air emissions primarily originated from particulate matter generated during shot blasting grinding and powder coating processes in the painting operations; volatile organic compounds (VOCs) released during powder curing; and
pollutants generated by spray painting in the paint line.Water Recycled cubic meters 450
Air Emission Management Measures
Water consumption intensity tons/unit 0.33
Pollution Sources Primary Pollutants Management Measures
Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.Coating and Spraying VOCs Particulate Utilize various processes such as filter cotton zeolite rotor Matter adsorption and catalytic combustion for harmless treatment
Through a multi-faceted approach that includes public education routine inspections process optimization and rainwater
reuse the company continuously improves water use efficiency reduces fresh water consumption and supports sustainable Sanding Process / Electrostatic Filtered and adsorbed using high-efficiency membrane filter
development. Powder Coating Particulate Matter cartridges then discharged at a height of 15 meters
Water Conservation Management Measures
Powder curing VOCs Treated via activated carbon adsorption and discharged from a height of 15 meters
Public Awareness Posting water-saving slogans and conducting water-saving awareness campaigns to foster
and Education a company-wide culture of water conservation. New Construction/Expansion Various exhaust Conduct environmental impact assessments in strict accordance
Projects gases with legal and regulatory requirements to ensure compliance
Routine Safety officers from each department and the Security Department inspect for issues such
Inspections as water pipe abnormalities and promptly report and address them to prevent water waste. Compliance Status of Industrial Exhaust Emissions ?
Emission Point Test Parameters Emission Unit Compliant
Process Water The coating water treatment process implements multi-stage reuse. Wastewater from the
Concentration
Conservation second process stage on all four coating lines is recirculated to the first process stage for Benzene 0.007 mg/m3 Yesreuse reducing fresh water consumption and minimizing wastewater discharge.Toluene 0.221 mg/m3 Yes
We have advanced a rainwater collection and utilization project constructing a 500-cubic- Ethyl acetate 0.008 mg/m3 Yes
Rainwater meter fire protection water tank with a total rainwater collection capacity of approximately RTO Treatment Outlet for
Collection 450 cubic meters. The collected rainwater is used for landscape irrigation and firefighting Paint Exhaust Ethylbenzene <0.006 mg/m3 Yes
purposes effectively reducing the consumption of tap water. o-xylene <0.004 mg/m3 Yes
Total non-methane hydrocarbons 2.06 mg/m3 Yes
Styrene <0.004 mg/m3 Yes
Sulfur dioxide ＜ 3 mg/m3 Yes
Exhaust outlet for
powder coating curing Nitrogen Oxides ＜ 27 mg/m3 Yes
waste gas treatment
Total non-methane hydrocarbons 1.18 mg/m3 Yes
Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.Key Performance
As of the end of the reporting period the Company’s exhaust gas emissions fully complied with national and local
standards with 100% of emissions meeting regulatory requirements.? Data extracted from the 2025 Inspection Report of EP’s Northern Region Plant47 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 48
Wastewater Management Solid Waste Management
The Company’s wastewater primarily consists of industrial wastewater and domestic sewage. The Company strictly adheres The company strictly adheres to relevant laws and regulations including the Law of the People’s Republic of China on the
to national laws regulations and relevant standards implementing classified collection and standardized disposal of all types Prevention and Control of Environmental Pollution by Solid Waste" and has formulated and implemented the Solid Waste
of wastewater to ensure the entire wastewater treatment process is compliant and controllable. Management System. It has established a comprehensive environmental pollution prevention and control accountability
system covering general industrial solid waste municipal solid waste and hazardous waste.Key Performance
Solid Waste Management Measures
During the reporting period 100% of the company’s wastewater met discharge standards. General Industrial Solid
Waste and Municipal Solid These are sorted and collected by the generating departments then entrusted to qualified entities
Waste for compliant disposal with useful resources being recycled.After collection in the hazardous waste storage facility disposal is entrusted to qualified enterprises.* Industrial wastewater is centrally treated at the industrial park’s wastewater Hazardous Waste The facility is inspected regularly to ensure the disposal process is conducted in a standardized and
treatment plant before being discharged into the sewer system; safe manner.Wastewater
Treatment * Domestic sewage is treated through sedimentation in pretreatment facilities such
as septic tanks and grease traps before being discharged into the municipal sewer
system or reused for landscaping. Waste Generation Volume in 2025
Indicator Unit 2025
Process * We continuously optimize production processes and actively promote dry
Optimization painting techniques to replace traditional wet painting thereby reducing industrial
Non-hazardous Waste Generation tons 567
wastewater generation at the source.Hazardous waste generated tons 90.7
* Regular emergency response drills for wastewater leaks are conducted in Note: The 2025 greenhouse gas emissions data includes only figures for the parent company of Zhejiang E-P EquipmentCo.Ltd.Emergency accordance with the Emergency Response Plan for Sudden Environmental Incidents.Management In 2025 a specialized emergency drill will be organized to simulate abnormal wastewater discharge scenarios in the industrial park promptly diverting hazardous
substances into emergency retention ponds to prevent the spread of pollution.Circular Economy
Case Wastewater Emergency Response Drill The company strictly implements national laws and regulations related to the circular economy. By adhering to the principles
of “reduction reuse and recycling” we enhance resource utilization protect and improve the environment and achieve
sustainable development.In September 2025 the company organized an emergency drill for wastewater treatment facility malfunctions in
the coating wastewater tank area with over 20 participants including safety and environmental personnel and Circular Economy Initiatives
key workshop operators. The drill simulated abnormal facility operations; on-site personnel immediately stopped
drainage opened emergency valves and reported the incident to activate the response plan. The emergency
response team swiftly contained the leak area transferred the wastewater to a collection tank and completed Reduction Reuse Resource Recovery
equipment repairs.The drill featured rapid response and standardized operations effectively testing the feasibility
of the emergency plan and enhancing employees’ on-site emergency response capabilities. Following the drill the
company conducted an on-site debriefing and prepared a written evaluation report. Based on issues identified
during the drill the emergency plan was continuously optimized to further improve the environmental risk prevention
and control system. Promoting green manufacturing Scrap iron and offcuts are Implement waste sorting and
processes and optimizing cast and processed into forklift recycling and entrust disposal to
product design to reduce counterweights; qualified companies;
material consumption;
Purchase end-of-life forklifts Designated personnel collect
Installing water storage tanks dismantle and refurbish them recyclable materials such as
in the painting workshop to into new forklifts. wooden pallets cardboard
promote the recycling of water boxes and plastics.resources;
Using standard pallets and
tooling for repeated use to
reduce packaging material
consumption.49 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 50
Key Performance Case Environmental Protection Training
During the reporting period the company procured 4161990 kilograms of scrap steel and scrap materials
20838 In 2025 the company organized a specialized training session on environmental laws and regulations featuring case for the production of counterweights resulting in greenhouse gas emissions reductions of metric studies and cautionary lessons. Participants included company management heads of production workshops safety
tons of carbon dioxide equivalent. and environmental protection specialists and employees in key positions.The training covered interpretations of core
environmental regulations such as the Environmental Protection Law and the Law on the Prevention and Control of
Environmental Pollution by Solid Waste. By examining typical industry cases of environmental violations the session
provided an in-depth analysis of common illegal practices—including excessive emissions the mixing of hazardous
waste with non-hazardous waste during storage and failure to promptly report malfunctions in environmental
protection facilities—along with the corresponding legal liabilities.Through a combination of regulatory explanations
and case studies participants further strengthened their awareness of environmental red lines and their commitment
Green Office Practices to compliant operations thereby enhancing the entire workforce’s ability to prevent environmental risks.EP has extended its green operations to daily office practices promoting green office initiatives through measures such as
water and electricity conservation and paperless operations thereby continuously fostering a low-carbon high-efficiency
green office culture.Green Office Initiatives
Electricity Reasonable use of air conditioning (no lower than 26°C in summer and no higher than 20°C
Conservation in winter) implementation of a "power off when unattended" policy for office equipment promotion of LED energy-saving lighting and full utilization of natural light. Environmental Protection Specialized Training
Water Turn off faucets promptly conduct regular inspections of pipes valves toilets and other
Conservation facilities and promote the use of water-saving fixtures.Paperless Implement paperless operations through systems such as OA ERP PLM and ADS; collect and Clean Production
Office recycle used paper centrally.The company comprehensively promotes clean production by systematically identifying and resolving environmental issues
in the production process aiming to reduce waste lower energy consumption improve resource utilization efficiency and
Waste Sorting Set up separate recycling bins; sort recyclables such as paper plastic and metal for proper minimize environmental emissions.and Recycling disposal; and collect hazardous waste such as used batteries and ink cartridges separately.Clean Production Initiatives
Eco-Friendly Encourage commuting via public transportation cycling and walking; rationally schedule the
Commuting use of official vehicles; and promote remote work and staggered commuting hours.Green Product Clean Energy and Raw Clean Production
Green Meetings Adopt online meetings to reduce business travel; digitize meeting materials; minimize the use Design Materials Processes
and Events of single-use items during events; and promote eco-friendly catering. Focusing on the innovative The Foundry Plant employs We adopt environmentally
application of high- advanced casting processes friendly low-risk processes
voltage lithium-ion battery and energy-efficient such as dry cutting and
technology we are creating equipment prioritizing the use powder coating instead of
Optimizing the Use eco-friendly building materials maintain indoor ventilation incorporate more green a new generation of material of clean energy. liquid paint reducing pollutant
Office Environment plants and prohibit smoking in office areas. handling solutions that offer generation at the source."the same price as diesel-
powered vehicles but with
performance surpassing
internal combustion engines"
Energy Conservation Regularly conduct energy conservation awareness campaigns organize green office training meeting the demands for zero
Awareness and Training sessions and share best practices and success stories in energy conservation. emissions long range and
low maintenance.51 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 52
04
Industrial Empowerment
Aligned with the United Nations Sustainable Development Goals
Key Issues
Innovation-Driven
Product and Service Safety and Quality
Supply Chain Security
Equal Treatment of Small and Medium-Sized Enterprises53 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 54
Special Feature: Green Manufacturing Diversified Brands and Business Portfolio
Crafting Premium Products The company has established a product ecosystem comprising "Five Major Brands + Eight Business Lines" to provide
customers with one-stop material handling solutions. Through a multi-brand collaborative strategy we continuously expand
product application areas and drive the logistics equipment industry toward intelligent and green upgrades.Adhering to the development philosophy of “Making Material Handling Simpler and Greener” EP drives product upgrades
through technological innovation advancing the electrification greening and intelligent development of logistics equipment.EP Brand and Business Layout
Green Product System
EP BIGJOE EP OEM PARTS
Addressing diverse material handling needs across various scenarios the company has established a product portfolio
covering warehousing manufacturing ports and aviation sectors. Currently it offers a product matrix comprising hundreds of
models and thousands of specifications to meet the material handling requirements of different customers. Electric warehouse Heavy-duty industrial vehicles Industrial Parts Manufacturing
equipment and forklifts
Major Product Categories of EP
Electric Pallet Trucks Electric Stacker
Warehouse and Logistics Handling Warehouse Stacking
Electric counterbalance forklift Reach Trucks EP ENERGY X-Mover EP Digital Intelligence
Industrial Manufacturing and Logistics High-Rack Storage Energy Storage Systems and Energy Solutions Intelligent Material Handling Robots
Electric Order Pickers Electric tow tractor
E-commerce Warehousing Logistics and Transportation
Reach stacker Civil Aviation Equipment
Port and Heavy-Duty Operations Airport Ground Support and Material Handling55 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 56
Product Innovation
Electrification Innovation Intelligent Innovation Remanufacturing Innovation
The company has launched the "xiaojingang" a Through the EP Digital Intelligence Platform the The company acquires end-
lightweight electric pallet truck driving the industry’s company is developing intelligent material handling of-life forklifts which are then
transition from manual to electric material handling. solutions driving intelligent upgrades at the product dismantled refurbished and
operational model and system levels. It is also remanufactured into compliant
creating smart factory and intelligent logistics new vehicles. This initiative
applications through the DAS Digital Intelligence has achieved greenhouse gas
System and the "X-Mover. emissions reductions of 20838
metric tons of CO2 equivalent
Remanufacturing Innovation Vehicles
xiaojingang electric pallet truck X-Mover
Green Innovation Digital Innovation Product Safety and Quality
The company has introduced "internal combustion Based on its self-developed Telematics platform
to electric" forklift technology unifying internal the company has established a digital operations The company consistently regards product safety and quality as the cornerstone of sustainable corporate development.combustion and electric forklifts on a single chassis system covering the entire equipment lifecycle We continuously improve our quality management systems and policies covering the entire product lifecycle to ensure thatplatform. This provides a viable pathway for the upgrading its business model from “equipment products fully comply with laws regulations industry standards and the core needs of global customers.electrification of the existing market of over 4 sales” to “equipment + data + services.”By
million internal combustion forklifts accelerating collecting and analyzing real-time data on fleet
the transition toward green operations in the forklift assets energy consumption utilization efficiency
industry in China and globally.Simultaneously the and fault information the platform provides
company has achieved the electrification upgrade multi-dimensional insights at both the fleet and Quality Management System and
of internal combustion forklifts and developed individual vehicle levels. This helps customers
modular combinable lithium-ion battery packs for optimize equipment utilization and charging Accountability Mechanisms
forklifts along with supporting battery swap station strategies while reducing energy consumption and
systems providing customers with greener and operational costs. Additionally through remote With the ISO 9001 quality management system as its core framework the company has established a standardized quality
more efficient logistics equipment solutions. diagnostics and a fault center the platform control system covering all dimensions of management technology and operations tailored to industry characteristics and
enables online monitoring and early warning of product application scenarios.equipment status significantly improving after-
sales response efficiency and service quality and
driving the transformation of logistics equipment
During the reporting period The company continued to obtain multiple certifications under authoritative operations toward intelligent visualized and refined domestic and international standards including:
management.Requirements for Quality Management Systems (ISO 9001:2015)
Quality Requirements for Fusion Welding of Metallic Materials (ISO 3834-2:2005)
Rules for the Licensing of Special Equipment Manufacturing and Filling Units (TSG 07-2019)
Telematics Platform Regulations on the Management of Special Equipment for Civil Airports (CCAR-137CA-R5)
EP Forklift Battery Swapping Station (top)
Modular Lithium-Ion Battery Pack Forklift (bottom) Inspection Measures for Civil Airport Special Equipment (AC-137-CA-2024-03)57 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 58
Building on this foundation the company has formulated and Measures for End-to-End Quality Control and Product Liability Management
implemented specialized management systems such as the QES
Management Manual Special Equipment Quality Assurance Manual
and Welding Quality Manual establishing a systematic quality
management mechanism that covers the entire process from R&D Raw Material Quality Control
Production Process
Quality Control Finished Product Quality Testing
procurement and manufacturing to delivery.The successful attainment of ISO 9001 and ISO 3834-2:2005 Conduct incoming inspections Implement a “five-tier quality Conduct functional testinginternational certifications signifies that the company’s quality control on critical raw materials and control mechanism” and conduct safety performance testing and
system is fully aligned with top international standards. components; in-process inspections at critical operational stability verification on
production stages; finished products;
ISO 9001 Quality ISO 3834
Management System Welding Quality
Certification Management
System Certification
Final Quality Inspection Post-Sales Quality Product Recall Management
Tracking Mechanism
Conduct final confirmation Continuously collect product Establish a mechanism for
of product quality through operational data and customer monitoring product quality issues
standardized pre-shipment feedback through the after-sales and emergency response; if major
inspection procedures; service system to achieve closed- quality and safety hazards are
End-to-End Quality Control loop quality data management identified promptly initiate product and drive continuous product recall procedures and implement
quality improvement; risk mitigation measures;
With product quality control throughout the entire lifecycle at its core the company focuses its efforts on every stage—from
R&D and design to supply chain management manufacturing and market application—to build a quality control model that
is controllable traceable and optimizable across the entire chain comprehensively ensuring product safety reliability and
compliance. Continuous Product Quality Improving Product Green Design and
Improvement Accessibility Environmentally Friendly Products
Comprehensive Supply Chain Quality Control Implement targeted quality By optimizing product design Integrating energy-saving eco-
improvements to meet the high extending the warranty periods for friendly and resource-efficient
The company treats the supply chain as a core strategic resource for quality management. Upholding the principles aesthetic standards demanded key components and enhancing concepts into the product design
of fairness openness and impartiality in cooperation we have established a comprehensive mechanism for supplier by European and American our after-sales service network we phase to continuously develop
onboarding and dynamic collaboration that covers the entire process. By organically integrating quality performance with customers and continuously will continue to improve product more energy-efficient and
value sharing we continuously drive a coordinated leap in the overall quality level of the industrial chain building a mutually optimize product quality through availability and ease of use; environmentally friendly material
beneficial supply chain ecosystem. the implementation of an AUDIT handling equipment.review mechanism;
Multi-dimensional Quality Control Mechanism for the Supply Chain
We have established supplier grading standards and conduct collaborative
Onboarding and onboarding across multiple dimensions including quality environment and safety.Collaboration We sign specialized quality assurance agreements with core suppliers to build robust
sustainable partnerships. Lean Quality Control in Manufacturing
The company adheres to the principles of lean manufacturing with digital-driven quality transformation as its core
strategy and comprehensively advances intelligent quality control throughout the entire production process.By innovatively
establishing the DAS Digital and Intelligent Quality Traceability System the company has achieved online aggregation
We have built a collaborative quality control system covering the entire chain from raw real-time monitoring intelligent early warning and end-to-end closed-loop traceability of product quality data across the
End-to-End material intake to production processes. By conducting joint unannounced inspections entire lifecycle. This enables seamless integration and efficient coordination of quality data throughout the entire process
Collaboration and process validations with suppliers we are jointly establishing a quality defense line. establishing a new model of transparent quality management characterized by data traceability process controllability and
result accountability.Key Performance :
During the reporting period the company experienced no quality or safety incidents product recalls or administrative
Leverage the DAS digital system to build a supplier lifecycle evaluation platform. penalties related to quality issues.Digital Guided by digital evaluation results we are constructing a supply chain collaboration
Empowerment ecosystem driven by quality and focused on co-creating value.59 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 60
Quality Risk Management Quality Training and Capacity Building
Based on industry trends and the company’s operational realities the company has continuously strengthened its forward- The company continuously strengthens employees’ quality awareness and operational skills through systematic training
looking quality control capabilities. By refining the end-to-end mechanisms for quality identification early warning and and skill-sharing initiatives ensuring that quality management measures are effectively implemented across production
resolution the company has systematically enhanced its product quality assurance standards.In response to the new manufacturing and after-sales service. The company conducts targeted training in key areas such as product quality
industry landscape characterized by stringent compliance requirements in overseas markets iterative upgrades of smart management equipment maintenance and fault diagnosis. By combining online learning courses with in-person training
products and the coordinated development of the industrial chain the Company has made in-depth efforts across multiple the company promotes knowledge sharing and the accumulation of experience thereby continuously enhancing employees’
dimensions—including source control in the supply chain lean management throughout the entire production process and quality management capabilities and technical proficiency.innovation and upgrading of core technologies. This has enabled the establishment of a comprehensive multi-tiered and
three-dimensional quality assurance system. By implementing high-standard quality control the Company has solidified the
foundation for sustainable development and provides high-quality highly reliable products and services to global customers. Key Performance :
During the reporting period EP released over 100 repair instructional videos for after-sales personnel to study
Quality Risk Management Measures and exchange ideas continuously enhancing the team’s professional capabilities through the sharing of technical
expertise and case reviews.We implement systematic quality and compliance management for suppliers
incorporating international certification requirements such as REACH and RoHS into
supplier management and quality assessment metrics to enhance product quality and
Supply Chain Quality compliance levels from the source.and Compliance
Management Customer Service and Management
EP adheres to a customer-centric approach continuously refining its full-lifecycle customer service system covering pre-
sales in-sales and after-sales phases. By integrating digital service platforms with specialized service teams the company
consistently improves customer service quality and response efficiency.We have established an “ABC Issue Control Mechanism” to implement categorized
management of quality issues at different levels. Through issue analysis and rectification
mechanisms we drive continuous quality improvement and reduce the probability of
Quality Issue quality risks occurring.Classification and Customer Service System Development
Control Mechanism
The company has formulated and implemented internal management systems such as the Customer Service Management
System and the After-Sales Service Management System to standardize customer service processes. Through a customer
screening mechanism the company focuses on project types that are replicable iterable and scalable prioritizing business
models with high promotional value to enhance service efficiency and project management capabilities.Digital Management Digital and Intelligent Platform-Based Intelligent Parts
Leveraging a digital quality middle platform to advance the digital transformation of Closed-Loop Technical Support Process Management Rapid Response
quality management we ensure end-to-end recording and traceability of product
quality data. Mechanisms such as “four-tier inspections” are employed to enhance the
Digital Quality accuracy and reliability of product quality testing. We have optimized Leveraging IoT remote systems Use the after-sales Deploy the "Digital
Traceability System the after-sales to monitor the status and faults management system to Flying Warehouse"
management of overseas vehicles in real time record technical cases intelligent parts
system to achieve proactively pushing technical and monitor service storage system
full-process solutions and integrating CARE timeliness; after review establishing parts
digitization of order work orders with the claims automatically populate warehouses in
tracking parts system to automate processes; the intelligent knowledge key domestic and
logistics inquiries establishing a multilingual base. Leverage the EPCARE international regions
and service system combining intelligent system (including the to achieve 24-hour
evaluations creating customer service with EPCARE- app) to provide customers parts delivery reduce
a closed-loop Quicksolution to provide global with one-stop after- customer downtime
Under the “trade-in” business model we have established a product inspection process service system to 24/7 intelligent self-service sales services including costs and replace
comprising “online preliminary review + on-site secondary review” to conduct rigorous improve customer backed by a technical support claims processing online the traditional high-
quality assessments and inspections of remanufactured products ensuring they meet interaction efficiency. team to resolve complex issues. searches intelligent cost multi-warehouse
Quality Risk Control new vehicle standards. customer service and parts model.for Remanufactured ordering.Products61 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 62
Closed-Loop Management of Customer
Complaints and Issues Customer Service Team Capacity Building
The company standardizes customer feedback reception and handling processes through regulations such as the Customer The company has formulated the After-Sales Service Personnel Training Management System and the Technical Service
Complaint Management System and After-Sales Service Management System. Through a multi-channel customer feedback Capability Enhancement Plan. It has established a high-quality training curriculum system comprising multiple modules and
system and standardized issue resolution mechanisms we ensure that customer needs are promptly addressed and all levels and routinely organizes systematic professional training and skill-sharing activities. These efforts comprehensively
effectively resolved. enhance the professional competence and problem-solving capabilities of service personnel providing a solid talent
foundation for customer service quality.Multi-Channel After-Sales Service Tiered Issue Senior Management Supply Chain
Complaint Submission Dispatch Management Oversight Collaboration
Customers can Customer Customer issues Major issues Coordinate with
submit service service request are categorized are reported the Hubei and
requests via repair information is and managed as special Anji factories and
QR codes official directly routed to according to agenda items key suppliers to
website links video the after-sales severity levels; at production diagnose and
calls and other department management rectify issues.methods; where regional meetings
after-sales chaired by the
personnel Chairman to Controller Training Overseas Battery Training
assign tasks for drive resolution;
resolution;
Key Performance :
During the reporting period EP has properly addressed all valid customer complaints.Customer Communication and
Satisfaction Management Overseas Online Training Robot Training Assessment
The company has established a comprehensive Customer Satisfaction Management System and an omnichannel customer
feedback mechanism. It regularly conducts multi-dimensional customer satisfaction surveys covering five core areas: product Key Performance :
quality product delivery after-sales service information security and technical support. Based on customer feedback the
company continuously optimizes product and service quality.During the reporting period the company organized a total of 17 specialized after-sales skills training sessions
Key Performance : totaling 46 training hours and reaching 832 employees thereby achieving a systematic enhancement of the after-sales service team’s professional capabilities.During the reporting period the company’s customer satisfaction score reached 92.94; all customer feedback
received during the period was handled promptly addressed accurately and resolved with a closed-loop process.63 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 64
Innovation-Driven R&D and Innovation Management Objectives and Planning
The company drives product technology upgrades and industrial innovation through systematic R&D planning. Aligning with
With its Corporate Research Institute at the core and supported by R&D institutions such as MoFu Digital Intelligence EP technological trends in the logistics equipment industry we prioritize the development of electrification green technology
has established a collaborative innovation system across multiple technological fields. The company has also established and intelligent technology continuously strengthening R&D in key technologies and product innovation.a provincial-level corporate research institute a provincial-level corporate technology center and a provincial-level
postdoctoral workstation providing crucial support for the company’s ongoing technological innovation and product Annual R&D Planning Mechanism
development.Each year the company formulates an annual R&D plan in alignment with corporate development strategies
and technological trends clearly defining priority R&D directions and key technology R&D projects while
R&D and Innovation Management System and Policies continuously monitoring and evaluating the implementation of these projects.The company designates the Research Institute as the primary entity for technology R&D management establishing a Market-Driven R&D Mechanism
comprehensive R&D management system that covers the entire process—from project initiation and implementation to
evaluation and commercialization of results. R&D activities are uniformly managed and standardized through institutional
documents and management mechanisms. Customer needs and product usage feedback are collected through sales channels and market research
serving as a crucial basis for product optimization and technical improvements.Research Institute Project Incentive Management Measures
These measures clarify the performance evaluation and incentive methods for R&D projects. They provide a Comprehensive Product Design Consideration Mechanism
comprehensive assessment of project goal achievement progress and the application of results and link
project performance to team incentives to drive the efficient implementation of R&D projects. During the product R&D and design process we comprehensively consider factors such as product
performance operational efficiency reliability as well as environmental sustainability and recyclability.Intellectual Property and Scientific and Technological Innovation Reward and Disciplinary System
Establishes a clear reward system for scientific and technological innovation activities such as the submission
of science and technology project proposals and patent applications to motivate employees to actively
engage in such activities. R&D and Innovation Incentive Mechanism
The company employs a variety of incentive methods to encourage employees to actively participate in R&D and innovation
R&D Project Management Mechanism activities driving the R&D team to continuously pursue technological exploration and product innovation.We implement a project-based R&D management model utilizing project management software to track Project Performance Incentives
and manage R&D projects throughout their entire lifecycle. This standardizes and streamlines R&D processes
thereby enhancing the efficiency of R&D project management.he R&D team is evaluated based on the achievement of project objectives project progress and the
application of results and R&D personnel are incentivized to actively participate in technological innovation
through project bonuses and other means.Innovation Project Incubation Mechanism
We implement an innovative model of “breaking down into smaller responsibility units” encouraging teams to
conduct exploratory R&D around new technologies and products allowing for reasonable trial and error and
continuously optimizing technical roadmaps through the summarization of experience.Technical Collaboration and Collaborative Innovation
Actively engage in technical cooperation with industry partners in the fields of intelligent and digital technologies
driving breakthroughs in key technologies through technical exchanges and collaborative R&D.65 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 66
Intellectual Property Protection Responsible Supply Chain
The company has established an intellectual property organizational structure coordinated by management and involving EP continues to refine its end-to-end management mechanisms covering supplier onboarding process control performance
cross-departmental collaboration and has set up a dedicated management department to systematically advance evaluation and collaborative development thereby continuously enhancing the security stability and transparency of its
intellectual property strategic planning and daily management. At the same time the company has formulated and supply chain.implemented regulatory documents such as the General Rules for Intellectual Property Management Procedures for
Intellectual Property Application Control and Reward and Punishment System for Intellectual Property and Technological
Innovation clarifying intellectual property management responsibilities and related processes. Through a combination of
centralized management and departmental collaboration the company promotes the standardized operation of intellectual
property management.Intellectual Property Management System Supply Chain Onboarding and Management Mechanisms
Intellectual Property Leading Group Intellectual Property
Management Department The company has established a comprehensive supplier development and onboarding system to ensure that suppliers
meet quality compliance and management requirements from the outset. The onboarding of suppliers is led by the Supplier
Responsible for intellectual property Responsible for intellectual property Management Department which collaborates with the Quality Department business divisions and other departments to
strategic planning decision-making on application management records conduct on-site reviews and comprehensive evaluations. Approval and traceability management are achieved through a
major matters and the formulation of management and external affairs. systematic process.annual work plans. Supplier Management Measures
Intellectual Property Management Mechanism
Establish supplier qualification standards clearly defining requirements for qualification review
Intellectual Property Management During the R&D Phase capability assessment and scoring/grading;
Conduct supplier surveys and evaluations to generate supplier assessment reports;
In accordance with the Design and Development Management Procedures patent planning and patent
searches are conducted during the product concept design phase. Through patent information analysis
technical innovation points are identified and potential infringement risks are mitigated providing technical Conduct multi-departmental joint reviews of suppliers’ on-site management process capabilities and quality systems;
references for product concept optimization.Implementing online approval and document retention for the entire supplier onboarding process via the OA system;
Intellectual Property Application and Management
Sign quality assurance agreements business ethics agreements and environmental health and safety (EHS)
agreements.The R&D project team submits the Intellectual Property Application Approval Form and technical disclosure
documents. Following procedures such as intellectual property searches and approval by the supervisor the
Intellectual Property Management Department is responsible for preparing application documents liaising Key Performance
with agencies and tracking applications to ensure a standardized and orderly intellectual property application
process.By 2025 EP will achieve a 100% signing rate for supplier integrity agreements.Intellectual Property Risk Management
Conduct intellectual property searches and risk analyses prior to new product R&D technology import/export
and product sales. Strengthen the protection of the company’s technological achievements and trade secrets Supplier Empowerment and Collaborative Development
through measures such as records management confidentiality management and contract management to
mitigate intellectual property risks.The company drives the overall enhancement of supply chain capabilities and sustainable development through policy
communication capacity building and strategic collaboration. At the same time the company actively promotes the
extension of green development concepts to the supply chain strengthens management requirements for suppliers in the
EP 2025 Intellectual Property Performance Table areas of environment compliance and social responsibility and fosters high-quality development across the entire supply
chain.Indicator Name Unit Performance
Total Number of Cumulative Patents Granted units 280
Number of software copyrights units 78
Valid patents per million in revenue units 0.064
Number of software copyrights per million in revenue units 0.018
Number of R&D employees people 796
Percentage of R&D staff % 17.34
R&D Expenditures RMB 10000 30100.23
R&D Expenditures as a Percentage of Revenue % 4.15
EP 2025 Supplier Digital Intelligence Conference67 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 68
Case 629 Innovation Conference Case The 10th Global Double 11 Gala
In June 2025 EP hosted the 7th Annual 629 Innovation Conference and the 5th “Forklift Safety Day” Hubei Sub-event In November 2025 EP hosted the 10th Global Double 11 Gala bringing together over a thousand government
at its Hubei Industrial Park. The event invited local government officials industry associations standardization bodies representatives industry associations and global partners. Centered on the development trends of green intelligent
media and numerous industry partners to participate. Focusing on topics such as forklift safety green transformation and digital technologies the event established an industry collaboration platform integrating product exhibitions
intelligent upgrades and digital-intelligent applications the conference established an industry collaboration technical exchanges and practical scenario demonstrations.During the event the company showcased innovative
platform integrating new product launches safety initiatives technical exchanges and hands-on demonstrations. achievements such as high-voltage lithium-ion forklifts intelligent material handling robots intelligent loading
During the event the company showcased over 100 innovative products and intelligent solutions including diesel-to- and unloading robots digital and intelligent flying warehouses and the DAS digital system. Through full-scenario
electric forklifts high-voltage heavy-duty lithium-ion forklifts battery swapping station solutions smart warehouses application demonstrations—including intelligent material handling intelligent loading and unloading and digital
intelligent loading and unloading robots intelligent picking robots and EP’s new services. Through full-scenario and intelligent warehousing—the company shared mature digital and intelligent solutions and practical experience
demonstrations and in-depth exchanges the company shared its innovative achievements and practical experience with partners driving their transition from traditional product collaboration to scenario co-creation and ecosystem
in safety green development and digitalization with partners helping them better grasp industry trends and expand synergy.into new markets and business areas.
629 Innovation Conference The 10th Global Double 11 Gala69 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 70
05
Benefiting People’s Livelihoods
Aligned with the United Nations Sustainable Development Goals
Key Issues
Protecting Employee Rights
Employee Training and Development
Occupational Health and Safety
Social Contribution
Rural Revitalization71 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 72
Employee Rights and Benefits EP Employee Data Table
Indicator Name Unit Employee Data
Total Number of Employees people 4591
EP strictly complies with relevant laws and regulations including the Labor Law of the People’s Republic of China the Labor
Contract Law of the People’s Republic of China and the Law on the Protection of Minors of the People’s Republic of China. The Number of Veterans people 85
company has formulated and implemented policies such as the Employee Handbook and continuously improves its systems
for standardized employment practices compensation and benefits career development and talent cultivation. Number of employees with disabilities people 32
Number of employees from ethnic minority groups people 232
Fair Employment and Diversity & Inclusion Number of Employees by Gender
Women people 1056
The company adheres to the principles of fairness openness and impartiality in employment building a dynamic job- Male people 3535
matching mechanism guided by business needs. For frontline production staff and non-frontline employees the company
implements differentiated recruitment strategies to enhance staffing efficiency. In expanding overseas operations the
company prioritizes local hiring and strengthens local operational capabilities and cross-regional collaboration through the Number of employees by job level
“triangular team” model for key positions.Senior management people 26
Recruitment and Employment Principles Middle Management people 236
Frontline employees people 4329
Explicitly prohibits discrimination based on region or nationality and maintains a globally open Number of employees by age
recruitment policy;
Under 30 people 1240
Establishing a fast-track recruitment process for special groups such as people with disabilities
veterans and workers from low-income families; 30–50 years old people 2823
We advocate for gender equality; job assignments are based on ability and performance and
employment opportunities are not influenced by gender differences; 50 and older people 528
Female employees are guaranteed equal employment and career development opportunities By educational attainment
during pregnancy and breastfeeding;
We establish training and mentorship support mechanisms for new partners and overseas teams to Ph.D. people 1
strengthen collaboration within diverse teams.Master's people 183
Bachelor's people 1192
Associate degree or below people 3215
Employee Turnover
Number of new hires people 1120
Number of employees who left people 687
Employee turnover rate % 18.07
Gender distribution of departing employees
Female % 16.45
Male % 83.55
Age distribution of departing employees
Under 30 (excluding 30) % 32.31
30–50 years old (inclusive of 30 exclusive of 50) % 57.5
50 years and older (including 50) % 10.1973 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 74
Anti-Discrimination and Compliance in
Labor Management Employee Care Management
The company prioritizes the protection of employees’ legal rights and interests continuously strengthening anti-discrimination The company has formulated and implemented employee care policies such as the Interest-Free Home Purchase Loan
anti-child labor and standardized employment management. Through institutional frameworks cultural promotion and the Program and the Employee Rental Subsidy Management Regulations establishing a multi-dimensional employee care
establishment of grievance mechanisms the company fosters a respectful equal and inclusive workplace environment. system focused on housing medical care and daily living support to continuously enhance employees’ sense of fulfillment
The company standardizes employment contracts working hour systems salary payments and occupational safety and belonging.arrangements to effectively safeguard employees’ fundamental rights. Employee Benefits
Anti-Discrimination and Compliance Employment Management Initiatives
Providing basic benefits such as free shuttle buses and employee meals;
Establishing anti-discrimination complaint channels such as the Chairman’s email and hotline;
Providing rental subsidies to enhance talent attraction;
Promoting fair impartial and transparent employment principles through corporate culture outreach
and employee conduct training;
Implementing an interest-free home purchase loan program to alleviate housing pressures;
Strictly prohibit the use of child labor; there were no records of labor violations during the reporting period;
Implementing medical mutual aid policies to improve healthcare coverage;
Collective agreements specify that wage standards shall not fall below the subsistence wage threshold;
Establishing a support mechanism for employees in need to address the needs of employees and their families.Frontline and certain R&D and sales positions operate under a comprehensive time-based system or
a flexible work schedule while functional positions primarily follow a standard work schedule.Compensation Incentives and Benefits
The company has formulated and implemented policies such as the Annual Employee Pay Adjustment Rules and the
Research Institute Employee Incentive System (Pilot) establishing a diversified incentive model centered on base pay
performance-based incentives special benefits and long-term incentives to enhance employee retention and motivation.The company has implemented differentiated incentive policies tailored to various positions and talent categories gradually
establishing a talent incentive framework that combines fixed and variable compensation with short- medium- and long-
term incentives. Additionally the Employee Handbook provides systematic guidelines on matters such as onboarding
compensation benefits and rewards and penalties thereby strengthening the foundation for safeguarding employee rights.Summer Care: Bringing Cool Relief to the Workshop Warming Young Hearts: "Children’s Day" Visit to
Children of Employees in Need
Compensation Incentives and Welfare Initiatives
The “Chairman’s Special Award” has been established to incentivize innovation and value creation.R&D personnel receive project bonuses commissions on new products and intellectual property subsidies.We encourage key employees to participate in long-term incentive programs and allocate original shares to them.Distributing holiday benefits and regularly organizing team-building trips to enhance employees’
sense of belonging.Team Building: Strengthening Employee Cohesion Festive Warmth: New Year Gift Packages Convey Care
Key Performance
Key Performance
During the reporting period the company strictly adhered to labor laws and regulations achieving a 100% rate
of signed employment contracts and 100% social insurance coverage thereby fully safeguarding employees’ During the reporting period the company allocated a total of RMB 110278.6 for employee welfare and medical
fundamental rights and interests. assistance funds used for hardship relief and daily care.75 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 76
Employee Communication and
Democratic Management Practical Training and Competency Development
The company emphasizes the integration of training and practical experience. Through project-based training skill
Relying on trade union organizations and internal communication mechanisms the company regularly convenes employee development and specialized training programs we foster continuous growth among employees in their daily work thereby
representative conferences and has established processes for collecting employee feedback and providing corrective action enhancing their job competence and overall capabilities.updates. Additionally by participating in performance feedback mediation conducting employee satisfaction surveys and
continuously optimizing logistical support the company promotes employee participation in corporate management. This
has established institutionalized channels to ensure that employee opinions are effectively conveyed and issues are resolved
in a closed-loop manner.Key Performance
In 2025 EP launched a Chairman’s email address as an employee feedback channel to further streamline
communication mechanisms. Concurrently the company conducted an employee satisfaction survey achieving an
82% satisfaction rate.
Employee Training and Development
Career Development and Talent
Development System
Based on regulations such as the Employee Handbook and the Research Institute Employee Incentive System (Trial) the
company has established an integrated talent development system combining “career development and tiered training”
creating a “dual-track” promotion mechanism that connects management and professional career paths. Through a tiered
and categorized training model the company links promotions with competency development training outcomes and Skills Competition Paramedic Training
project experience forming a closed-loop “selection—training—promotion” mechanism to systematically empower employee
growth.Employee Career Development and Training System Employee Skills Training
Key Performance
Establish a dual-track promotion mechanism for management and professional tracks clearly defining job
grades and promotion criteria; During the reporting period EP conducted a total of 517 employee training sessions reaching 12014 participants.The total duration of online and offline training was 776.57 hours with a 100% completion rate of the training
Annually publish a list of key employees and implement promotions and position optimization; plan; training content covered multiple dimensions including operations regulations and products.Build a tiered and categorized development system covering senior management middle management
and frontline employees;
Implement youth talent development programs such as the “Young Talents Program” and “SparkProgram” to accelerate the growth of future leaders.77 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 78
Occupational Health and Safety Occupational Health Management and
Protective Measures
In accordance with regulations such as the Occupational Health Operating Procedures the company continuously
EP strictly adheres to laws and regulations such as the Work Safety Law of the People’s Republic of China and the advances occupational health management and systematically carries out the identification testing and protection against
Occupational Disease Prevention and Control Law of the People’s Republic of China. The company has formulated and occupational hazard factors.To address risks at key workstations such as noise welding fumes and painting the company
implemented internal systems such as the Work Safety Management System and Occupational Health Operating Procedures regularly conducts testing for occupational hazard factors and formulates targeted protective measures. By distributing
to systematically advance occupational health and safety management. noise-reducing earplugs strengthening supervision of their use and optimizing the work environment the company effectively
reduces occupational health risks. At the same time the company strictly enforces occupational health examinations for
employees before they start work during their employment and upon leaving their positions achieving full coverage of health
management for key workstations and effectively safeguarding employees’ occupational health rights.Safety Management System and
Institutional Development
The company has established a comprehensive management system covering risk identification
process control and incident management continuously enhancing the standardization
and enforcement of safety management to provide a solid institutional foundation for safe
production. At the same time the company dynamically optimizes its systems based on actual
production conditions to ensure that all regulations effectively guide on-site operations and safety
management practices.Key Performance
During the reporting period EP obtained certification for its Occupational Health and Safety ISO 45001
Management System and achieved a 100% signing rate for safety responsibility agreements. Occupational
No major work safety violations occurred throughout the year and the company received no Health and Safety
administrative penalties related to work safety. Management
System
Certification Engineering Control Measures at25
Safety Responsibility and Cultural Development Key Performance
During the reporting period the parent company invested over RMB million in safety technology upgrades
The company has established a “Four-All” safety management model—covering “all employees the entire process all 30primarily for the construction of automated welding and stamping production lines to achieve separation of humanaspects and around the clock”—by breaking down safety objectives to managers at all levels and frontline employees and machinery operations. Throughout the year there were zero employee fatalities fires explosions or occupationalthereby forming a safety responsibility system where “everyone is accountable and responsibility is assigned at every disease incidents.level.” Through continuous promotion of safety culture the company has integrated the “safety first” philosophy into daily
management gradually transforming it into employees’ voluntary behavior.Safety Responsibility Management System
General Safety Shop Floor Team Safety Training and Capacity Building
Manager Department Manager Manager Leader
Employee
The company has formulated and implemented the Safety Education and Training Management System to establish a safety
training framework covering all employees. Tailored training programs are conducted based on job roles and risk types to
enhance employees’ safety awareness and operational capabilities. Training content focuses on the management of major
hazard sources accident prevention and occupational health knowledge thereby strengthening employees’ ability to identify
risks and respond to emergencies.Safety Risk Control and Hazard Identification
The company has formulated and implemented the Hazard Identification and Risk Assessment System shifting risk control
to the front end of the entire production process. By combining routine inspections special inspections and seasonal
inspections the company promptly identifies and eliminates safety hazards continuously reducing the risk of safety incidents.Key Performance
During the reporting period EP conducted a total of 207 safety inspections identified and rectified 256 potential
hazards achieved a 100% rectification rate and implemented closed-loop management of hazards.Safety Emergency Drill79 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 80
Case “Red Vest” Volunteer Service Initiative
The company organized employees to carry out the “Red Vest” volunteer service campaign focusing on
environmental sanitation improvements community service and visits to families in need. Volunteers went into
communities and rural areas to provide practical assistance to vulnerable groups and actively improve the
community environment. Through these services employees’ sense of social responsibility and team cohesion were
strengthened and positive interaction between the company and the community was promoted.Safety Training
Key Performance
In 2025 the parent company conducted a total of 88 safety training sessions totaling 53 training hours and
reaching 5739 employees.Red Vest Volunteer Service Initiative
Social Contribution
Case Donations to University Education Case EP’s “Charity Day Donation” Foundations Campaign
Through the establishment of long-term sustained charitable initiatives and employee participation mechanisms EPchannels corporate resources back into society supporting regional educational development and community harmony EP regards “empowering future talent for the EP is deeply integrated into local social developmentthereby continuously enhancing the company’s social value and influence. industry” as a strategic pillar of its corporate and actively participates in Anji County’s “2025social responsibility. The company continues to One-Day Charity Donation” campaign. Dedicated
make targeted donations to university education donation funds are precisely allocated to four key
foundations focusing on supporting educational areas of public welfare: support for the elderly
Case Anji County Seventh Primary School’s “Home Visits at the Workplace” Initiative projects at top institutions such as Southwest people with disabilities medical care and poverty
Jiaotong University and Tongji University alleviation. This initiative is part of the company’s
thereby contributing to talent development and community investment strategy aimed at
The company and Anji County No. 7 Primary School jointly organized the “Home Visits at the Workplace” initiative technological advancement within the industry. responding directly and efficiently to the urgent
breaking through the spatial limitations of traditional home visits and innovating a collaborative education model needs of local vulnerable groups and fostering
to promote the establishment of a tripartite education mechanism involving schools enterprises and families.The harmonious mutually supportive community
initiative focused on the educational needs of employees’ children optimized the precise allocation of educational relationships.resources and fostered a diverse and collaborative environment for their growth. This not only deepened the
partnership between the school and the company but also effectively fulfilled social responsibilities strengthened
corporate cohesion achieved a win-win-win outcome for the company school and families and demonstrated the
company’s social commitment.Donations to University Educational
Foundations EP’s “Charity Day Donation” Campaign
Key Performance
During the reporting period EP donated over RMB 600000 to support charitable and educational causes while
also organizing volunteer activities.Anji County Seventh Primary School’s “Home Visits at the Workplace” Activity81 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 82
Industry Development Rural Revitalization
EP actively responds to the national rural revitalization strategy by aligning corporate development with regional economic
growth. The company prioritizes hiring labor from surrounding townships promoting local income growth for rural workers
Industry Standards and Regulation Development through stable employment and skills development. At the same time leveraging its industrial strengths the company drives
the coordinated development of regional industrial chains thereby boosting local economic vitality.The company actively participates in the formulation and revision of national industry and group standards driving
the development of technical specifications in the industrial vehicle sector. Leveraging platforms provided by industry Case Targeted Assistance for Local Rural Areas in Zhuji Zhejiang
associations and professional committees the company focuses on areas such as industrial vehicle safety stability and
sustainable development continuously supporting the standardization and regulation of the industry.Rooted in Zhuji Zhejiang EP employs a dual-drive approach of “giving back to the community through philanthropyand industrial expansion” to continuously empower the development of towns such as Zhaojia Town systematically
Key Performance addressing shortcomings in public services such as education and healthcare. In the field of education the company
established the “Jinhui” Teacher Award Fund to provide targeted support to the Zhaojia Town Central School in
In 2025 the company participated in the revision or formulation of 6 standards including 3 new national standards Zhuji City donating a cumulative total of RMB 1 million over five years to reward teachers and assist students in rural
1 1 areas.In the healthcare sector the company donated CT equipment worth RMB 2 million to the Zhaojia Town Health revision to a national standard new industry standard and 1e revision to an industry standard. Center effectively enhancing primary healthcare service capabilities. Regarding ecology and industry the company
adopted 50 ancient Chinese chestnut trees to support the development of eco-cultural tourism and implemented a
RMB 100 million supporting industrial project. This initiative has driven local employment and industrial upgrading in its
Standard Number Standard Name hometown achieving synergistic progress in both social and economic benefits.JB/T 14948-2025 High-Level Order Picking Vehicle
JB/T 3340-2025 Reach Forklift
GB/T 45561.1-2025 Industrial Vehicles — Sustainability — Part 1: Terminology
GB/T 45561.2-2025 Industrial vehicles—Sustainability—Part 2: Factors and reporting
GB/T 26949.3-2025 Industrial vehicles — Sustainability — Part 3: Forward-reach and reach-in forklift trucks
GB/T 35205.4-2025 Off-road forklift trucks—Safety requirements and verification—Part 4
“Jinhui” Teacher Recognition Fund Project
Industry-Academia-Research Collaborative Innovation
The company continues to deepen collaborative innovation among industry academia and research establishing long-
term cooperative relationships with multiple universities to carry out practical cooperation in technology R&D and talent
development.University-Industry Collaboration: Company Visit Activity83 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 84
Appendix to the Report Indicators Unit 2025
Investor Relations Management
Number of On-site Investor Visits times 16
Key Performance Indicators Number of investors hosted for on-site visits people Approx. 200
Number of investor questions answered instances 58
Economic Performance
Investor question response rate % 100
Number of periodic reports disclosed copies 4
Indicators Unit 2025
Economic Number of interim reports disclosed copies 62
Tax Revenue RMB 10000 54253.49
Annual Revenue RMB 100 million 72.54
Environmental performance
Governance Performance Indicators Unit 2025
Environmental Protection Expenditures
Total Environmental Protection Expenditures RMB 10000 95.8
Indicators Unit 2025
Total Environmental Protection Expenditures as a Percentage
Protection of Shareholder Rights of Operating Revenue
%0.01
Total Number of Shareholders’ Meetings Held Times 4 Non-renewable energy consumption
Natural gas 10000 cubic meters 140
Board Supervisory Board and Senior Management
Purchased electricity 10000 KWh 1087
Number of Board Members persons 8
Total Energy Consumption tons of standard coal 3035.94
Number of Board Resolutions Passed Items 47
Energy consumption intensity tons of standard coal per 0.42
Average term of office for board members ? years 4.38 million in revenue
Percentage of independent directors % 37.5 Renewable energy consumption
Number of Board Meetings Held times 8 Electricity Consumption from Photovoltaic Power Generation 10000 kWh 910
Board member attendance rate % 100 Share of renewable energy consumption % 36.84
Number of directors attending fewer than 75% Greenhouse gas
of meetings persons 0
Scope 1 greenhouse gas emission intensity tons of CO2 equivalent perRMB 10 million 0.41
Number of Audit Committee meetings times 7
Number of Compensation Committee Scope 2 greenhouse gas emissions intensity
tons of CO2 equivalent
times 1 perRMB 10 million
0.80
meetings
Number of Nomination Committee meetings times 0 Total greenhouse gas emissions density (Scope 1 + Scope 2)
tons of CO2 equivalent
perRMB 10 million 1.20
Number of female directors persons 2 Waste
Percentage of female directors % 25 Total waste generated tons 657.7
Number of female senior executives persons 0 Total Hazardous Waste Generated tons 90.7
Percentage of female senior executives % 0 Total non-hazardous waste generated tons 567
? The term of office disclosed in this report refers to the continuous period during which a director has served in that capacity at the Company as of the end
of the reporting period. For directors who previously served but had a break in service before being reappointed the term is calculated from the date of their
most recent reappointment.85 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 86
Indicators Unit 2025 Indicators Unit 2025
Waste Material consumption
Plastic packaging materials tons 60
Hazardous waste density tons per RMB 10 million 0.01
Wooden crates tons 3432
Non-hazardous waste density tons per RMB 10 million 0.07
Green Office
Solid waste emissions
Office paper consumption Sheets 2062500
Total hazardous waste generated tons 90.70 Total Office Electronic Waste tons 0.3
Total General Solid Waste Generated tons 567
Wastewater discharge
Wastewater discharge volume tons 9900
Types of Wastewater Pollutants Discharge Status
Social Performance
Chemical Oxygen Demand (COD) tons 0.16
Five-Day Biochemical Oxygen Demand (BOD5) tons 1.21
Indicator Unit 2025
Suspended solids tons 1.21
Employment and Diversity
Ammonia nitrogen (NH3-N) tons 0.01
Total Number of Employees people 4591
Total phosphorus (as P) tons 0.03
Male people 3535
Exhaust Gas Emissions
By gender Female people 1056
Exhaust gas emissions 10000 cubic meters 63644.6 Percentage of female
employees % 23%
Emissions of Air Pollutants
Under 30 people 1240
Nitrogen Oxides (NOx) tons 0.76 By age 30–50 years old people 2823
Sulfur oxides (SOx) tons 0.15 50 and older people 528
Volatile organic compounds (VOC) tons 2.74 Ph.D. People 1
Hazardous Air Pollutants (HAP) mg/m3 Less than 1.5 × 10 ? 3 Graduate students and above people 183 By educational attainment
Particulate Matter (PM) tons 1.83 Bachelor's degree people 1192
Water resources Associate degree or below people 3215
Freshwater consumption tons 87068 Senior management people 26
Number of employees by
Water Reuse cubic meters 450 job level
Middle Management people 236
Frontline employees people 4329
Water consumption intensity tons/unit 0.33
Number of Employees with
Disabilities people 32 Material consumption
Recruitment with a focus on
Total packaging materials used tons 3562 social responsibility Number of employees from ethnic minority groups people 232
Paper packaging materials tons 70 Number of veterans on staff people 8587 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 88
Indicator Unit 2025 Indicator Unit 2025
Employee recruitment and retention Occupational Health and Safety
Total number of new hires people 1120 Safety risk prevention training coverage rate % 100
Number of safety training sessions sessions 88
Number of employees who left people 687
Number of safety emergency drills times 17
Employee turnover rate % 18.07
Occupational disease incidence rate % 0
Male % 83.55
Gender distribution of Coverage rate of occupational injury insurance for
departing employees
Female % 16.45 employees
%100
Annual occupational health examination coverage rate for
Under 30 (excluding 30) % 32.31 employees % 100
Age distribution of departing 30–50 years old Rate of hazard identification and rectification % 100
employees (including 30 excluding 50) % 57.50
Number of work-related injuries people 15
50 years and older
(including 50) % 10.19 Number of serious work-related injuries people 0
Employee Benefits Number of work-related fatalities people 0
Employee Assistance and Welfare Funds RMB 10000 7.63
Injury rate per million work hours incidents per million hours worked 1.63
Number of Employees Receiving Assistance people 75
Workdays lost due to work-related injuries per $1 million in
revenue days 0.14
Number of employees in need assisted per million in revenue people 0.01
Workplace injury rate % 0.33
Labor contract signing rate % 100
Employee training
Social insurance coverage rate % 100
Total Training Hours hours 776.57
Employee satisfaction
Number of Training Sessions sessions 517
Number of employees who participated in the employee
satisfaction survey people 893 Total number of participants people 12014
Employee Satisfaction % 82 Research and Development ?
Number of labor dispute cases cases 3 Total Number of Patents Granted units 280
Number of employee complaints received instances 2 Number of Software Copyrights units 78
Occupational Health and Safety Valid Patents per Million in Revenue units 0.064
Software Copyrights per Million in Revenue units 0.018
Amount Invested in Workplace Safety RMB 10000 3392
Work Safety Investment as a Percentage of Operating R&D Expenses RMB 10000 30100.23
Revenue % 0.47
R&D Expenditures as a Percentage of Main Business Revenue % 4.15
Number of employees trained in safety person-times 5739
Number of R&D Personnel people 796
Total duration of safety education and training person-hours 2919.5
Percentage of R&D personnel out of total workforce % 17.34
Average safety training hours per person hours 0.51 Certification of corporate innovation capability
Safety education and training coverage rate % 100 National High-Tech Enterprise No. 1
? The data on patents and software copyrights disclosed in this report pertains solely to the parent company of Zhongli Co. Ltd. and does not include
intellectual property held by subsidiaries within the scope of the consolidated financial statements.89 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 90
Indicator Unit 2025 Indicator Unit 2025
Charitable Donations Data Security
Total Charitable Expenditures RMB 10000 65 Number of relevant training sessions conducted times 3
Number of Volunteer Participants person-times 42 Number of participants in practical exercises and training people 150
Number of volunteer activities times 5 Number of information security and privacy protection
violations during the reporting period incidents 0
Total volunteer hours hours 20
Customer privacy protection
Responsible marketing
Number of customer information leaks Incidents 0
Number of Participants in Responsible Marketing Training Participants 5018
Losses resulting from violations of relevant laws and
regulations RMB 10000 0 Total duration of responsible marketing training hours 3282.5
Number of Responsible Marketing Training Sessions sessions 79
Green Office
Index Table
Office paper consumption sheets 2062500
Total Office Electronic Waste tons 0.3
Index Location GRI Standard SSE Guidelines
Product responsibility
(I) About This Report GRI 2-2 2-3 2-4 /
Product Conformance Rate % 92.91
Report Introduction (2) Chairman’s Message / /
Number of annual internal quality audits times 2
(III) About EP 2-1 /
Number of random inspections conducted by third-party
agencies times 2 (1) Sustainability Strategy
Percentage of products subject to withdrawal and recall due / (2) Sustainable Development
to quality issues % 0 Action Plan GRI 2-22
I. Sustainable
Number of products subject to withdrawal and recall due to units 0 Development （3）EP ESG Managementquality issues Governance
(4) Stakeholder Engagement GRI 2-26 2-29 Stakeholder Engagement
Number of participants in quality culture training People 1012
(5) Materiality Assessment GRI 3 Sustainability Disclosure Total duration of quality culture training hours 61 Framework
Number of quality culture training sessions sessions 121 (I) Standardized Governance GRI 2-24 Due Diligence
Customer service (2) Protection of Investor Rights GRI 2-26 2-29 Stakeholder Engagement
Number of customer complaints times 17 (3) Compliance GRI 2-27 Due Diligence
II. Lean Governance
Number of resolved customer complaints cases 17
(4) Business Ethics GRI 205 Anti-Bribery and Anti-Corruption
Number of customers surveyed people 17
(5) Data Security and Customer GRI418 Data Security and Customer Percentage of customers who participated in the survey % 100 Privacy Protection Privacy Protection
Number of participants in specialized training on customer Participants 1624 (I) Addressing Climate Change GRI305 Addressing Climate Changecomplaint response
III. Environmental (2) Environmental Compliance Environmental Compliance Total duration of specialized training on customer complaint Management GRI 2-24 404
response hours 4 Stewardship
Management
Energy Use
Number of Customer Complaint Response Training Sessions times 8 (3) Energy Use GRI 302 Circular Economy91 About This Report Message from the Chairman About EP Sustainability Governance Lean Governance Environmental Stewardship Industry Empowerment Improving People’s Livelihoods Report Appendices 92
Index Location GRI Standard SSE Guidelines Reader Feedback Form
(4) Water Use GRI303 Water Use Circular Economy
Dear Reader:
Hello!
Pollutant Emissions Thank you very much for reading the "Zhejiang E-P EquipmentCo.Ltd.
(5) Emissions and Waste GRI 303 305 306 Waste Management
Circular Economy 2025 Environmental Social and Governance Report." The company sincerely hopes you will evaluate this report and provide
III. Environmental your valuable feedback. Your comments and suggestions serve as an important basis for the company to continuously
Stewardship improve the report. Please fill out the survey form below and submit your feedback to the company.
(6) Circular Economy GRI 301-2 301-3 Circular Economy
(7) Green Office GRI 302 303 Environmental Compliance "Zhejiang E-P EquipmentCo.Ltd. 2025 Environmental Social and Governance (ESG) Report Feedback Form"Management
(8) Cleaner Production GRI 301-2 301-3 305 Addressing Climate Change Circular Economy Name
(I) Special Topic: Green Position
Manufacturing Creating / Innovation-Driven
High-Quality Products
Phone
(2) Product Safety and GRI416 Product and Service Safety Quality and Quality
(3) Customer Service and Email
Management GRI 2-25 416 417
Safety and Quality of Products
IV. Industrial and Services
Empowerment
(4) Innovation-Driven GRI 404 Innovation-Driven
01 Your overall evaluation of this report is:
(5) Intellectual Property
Protection / Innovation-Driven □ Excellent □ Good □ Fair □ Poor □ Very Poor
(6) Responsible Supply
Chain GRI 204-1 308-1 308-2 414-1 Supply Chain Security 02 How would you rate the accuracy completeness timeliness and clarity of the information disclosed in this report
□ Excellent □ Good □ Fair □ Poor □ Very Poor
(I) Employee Rights and GRI 401-1 405-1 406-1 407-1
Benefits 408-1 409-1 Employees 03 How would you rate the accuracy completeness timeliness and clarity of the information disclosed in this report
□ Excellent □ Good □ Fair □ Poor □ Very Poor
(2) Employee Training and
Development GRI 401-2 401-3 404-1 404-2 Employees 04 How would you rate the accuracy completeness timeliness and clarity of the information disclosed in this report
V. Improving People’s
Livelihoods (3) Occupational Health and Safety GRI 401-2 401-3 404-1 404-2 Employees
05 How would you rate the accuracy completeness timeliness and clarity of the information disclosed in this report
(4) Social Contribution GRI 413-1 Social Contribution
(5) Industry Development GRI404 Innovation-Driven
06 How would you rate the accuracy completeness timeliness and clarity of the information disclosed in this report
(6) Rural Revitalization / Rural Revitalization
Report Appendix / /
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