2024 Environmental Social and Governance (ESG) ReportQuectel Wireless Solutions Co. Ltd.Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance

2024 Environmental Social and Governance (ESG) Report

About This Report Information Sources

The Report is the second Environmental Social and Governance (ESG) report published by Quectel Wireless

The information disclosed in the Report is sourced from Quectel’s official internal documents statistical reports

Solutions Co. Ltd. for its stakeholders. It provides a detailed disclosure of the Company’s practices and

and financial statements. The data presented is derived from Quectel’s actual operations annual financial

performance in areas such as economic environmental social and corporate governance responsibilities

data internal statistical reports third-party surveys and third-party evaluations and interviews. The Company

during 2024. The Report aims to facilitate effective communication with stakeholders and systematically

guarantees that the Report contains no false records or misleading statements and is fully responsible for

respond to their expectations and requirements.The content of this report shall be ultimately governed by its

its authenticity accuracy and completeness.All amounts involved in this report shall be uniformly settled in

Chinese version.Renminbi (RMB).Reporting Period Access to the Report

The Report covers a period from January 1 2024 to December 31 2024. To enhance comparability and The Report is available in electronic format. You can access the report on our official website (https://www.completeness certain information may extend beyond this timeframe. quectel.com.cn/) or on the Shanghai Stock Exchange website (www.sse.com.cn). For any questions or

Reporting Scope suggestions regarding the Report please contact us via email at yiyuan@quectel.com or call +86 21-51086236-

6778.

The Report covers Quectel Wireless Solutions and its subsidiaries and discloses information on the Company’s

economic social and environmental responsibilities along with exemplary cases.Reporting Standards

Global Reporting Initiative (GRI) Standards 2021

United Nations Sustainable Development Goals (SDGs)

Rules Governing the Listing of Stocks on Shanghai Stock Exchange

Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Standardized Operation

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

(Trial) hereinafter referred to as the “Guidelines”

Guidelines No. 4 of Shanghai Stock Exchange for Self-regulation of Listed Companies—Sustainability Report

Preparation

Chinese Academy of Social Sciences - General Framework of the China Corporate Sustainability Reporting

Guidelines (CASS-ESG 6.0)

Terminology and References

For ease of reading the following abbreviations are used in this report:

Abbreviation Full Name / Business Segment

Quectel Wireless Solutions Quectel the Company We Quectel Wireless Solutions Co. Ltd.Quectel Changzhou Quectel Telecom Technologies Changzhou Co. Ltd.Hefei Yirui Hefei Yirui Communication Technology Co. Ltd.Quectel Guangdong Quectel Telecom Technologies Guangdong Co. Ltd.Quectel Guilin Quectel Telecom Technologies Guilin Co. Ltd.

1 2Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Message from Our Chairman

As technological advancements surge forward and efficiency—laying a solid foundation for sustainable In response to environmental and climate challenges

market dynamics continue to evolve Quectel remains growth. In 2024 we were honored with numerous w e a r e d e d i c ate d to s u sta i n a b l e d e v e l o p m e n t

at the forefront of the industry as a global leading industry accolades including the Global Ecosystem striving to minimize the environmental impact of

p rov i d e r i n co m p re h e n s i ve I oT s o l u t i o n s a n d i s Partner Award Best Innovation Solution Award and our operations and safeguard ecological resources.committed to presenting customers with advanced AI Innovation Application Award. In 2024 we conducted clean production audits

integrated digital intelligence solutions. We recognize installed distributed photovoltaic systems organized

that in this era of transformation customers have In terms of talent development and employee well- promotional campaigns on environmental protection

h e i g h t e n e d e x p e c t a t i o n s f o r p r o d u c t s e c u r i t y being we embrace a people -centric philosophy and implemented energy transition and low-carbon

e n e rg y co n s e r vat i o n e n v i ro n m e n ta l p rote ct i o n va l u i n g t h e co n t r i b u t i o n s o f o u r wo r k fo rce a n d operational strategies. We continuously refine our

and innovation. With an unwavering commitment to providing extensive career development opportunities e n v i ro n m e n ta l m a n a ge m e n t s y ste m r i go ro u s l y

excellence and a strong sense of responsibility we and diversified incentive mechanisms. We emphasize comply with laws and regulat ions and enhance

continue to expand our business landscape driving employee growth by investing significant resources environmental monitoring and governance to ensure

innovation to achieve sustainable development and in training achieving the total training hours for green and compliant production.win-win cooperation. e m p l o y e e s r ea c h e d 2 8 0 k h r s i n 2 0 2 4 f o ste r i n g

mutual development between employees and the Looking ahead guided by customer needs and driven

In terms of product research and development (R&D) Company. We regularly organize a variety of employee by technological innovation we will continuously

and digital intell igence we adapts proactively to engagement activities and well-being programs and re f i n e a n d e n h a n ce o u r p ro d u cts a n d s e r v i ce s .market demandsstays at the forefront of industr y establish multi-channel communication platforms We will deepen collaboration and exchange with

trendsand drives sustainable innovation. We have that encourage employees to contribute ideas and partners across sectors jointly driving the thriving

established a product portfolio rooted in our core suggestions for the Company’s growth. development of the industr ywhile upholding our

offerings while fostering synergy across diversified corporate social responsibilities contributing to a

business segments. Leveraging advanced algorithms We remain deeply committed to corporate social greener more efficient and intelligent future. We

we deliver customized digital intelligence solutions responsibility and steadfast in our mission to give sincerely appreciate your continued support and trust

to o u r c u sto m e r s . S i n ce o u r i n ce pt i o n p ro d u ct back to society. We actively participate in public in Quectel. Let us join hands to forge a brilliant future

security and reliability have been our top priorities. welfare initiatives and volunteering activities with together!

We have consistently strengthened our compliance a particular focus on supporting vulnerable groups.mechanisms to ensure superior product qual i ty. In 2024 we donated 3449 items to Shatou Town

Our modern manufacturing facilities integrate lean Primary School in Wuzhou City Guangxi Province

automated and digital production philosophies and provided grants to Guilin University of Electronic

optimizing resource allocation enhancing automation Technology contributing to education development Quectel Wireless Solutions Co. Ltd.effectively reducing waste and significantly improving and growth through concrete actions. Chairman&CEO ｜ Penghe Qian

3 4Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Table of Contents

Quectel: Empowering a Connected

About This Report 01 World with Ambitions 07 ESG Governance 23

Message from Our Chairman 03 About Us 09 Sustainability Governance Framework 25

Our Business 13 Sustainable Development Management Mechanism 25

Our History 17 Materiality Analysis 27

Honors in 2024 19

ESG Performance Highlights 21

Environment 33 Society 55

Climate Change Response 35 Driving R&D Innovation 57

Environmental Compliance Management 39 Contributing to Digital Intelligence Development 64

Emissions Management 43 Product and Service Quality 68

Optimizing Energy Management 48 Supply Chain Management 77

附录 Enhancing Water Resource Utilization 51 Data Security and Privacy Protection 85

Benchmarking Index Table 131 Promoting the Circular Economy 52 Safeguarding Employee Rights and Interests 90

Safeguarding the Ecological Environment 53 Promoting Rural Vitalization 111

Green and Low-Carbon Operations 54 Social Contributions 112

Governance 113

Improving Corporate Governance 117

Compliance and Risk Management 121

Adherence to Business Ethics 126

Protecting Investor Rights and Interests 129Quectel: Empowering

a Connected World

with Ambitions

About Us 09

Our Business 13

Our History 17

Honors in 2024 19

ESG Performance Highlights 21Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance 2024 Environmental Social and Governance (ESG) Report

About Us

Company Profile

Quectel Wireless Solutions Co. Ltd. established in 2010 in Shanghai is a global leading provider in

comprehensive IoT solutions. The Company offers a comprehensive portfolio of IoT products and services

including cellular modules (5G/4G/3G/2G/LPWA) OEM in-vehicle modules smart modules (5G/4G/edge

computing) short-range communication modules (Wi-Fi & Bluetooth) GNSS positioning modules satellite We boast eight R&D centers worldwide located in Shanghai Hefei Foshan Guilin Wuhan Penang

communication modules and antennas. In addition to hardware we provide services and solutions (Malaysia) Belgrade (Europe) and Vancouver (North America). We also have over 50 global

such as software platform services certification and testing industrial intelligence and agricultural sales centers more than 90 sales partners and over 5800 employees serving more than 7000

intelligence. With extensive industry experience our products are widely applied in smart transportation customers worldwide.smart energy financial payment systems smart cities wireless gateways smart agriculture and

environmental monitoring smart industry smart living and healthcare and intelligent security.Global Sales Sales Partners Employees Serving Global

Center Customers

50+90+5800+7000+

9 10Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Quectel’s Global Locations

Europe Asia Pacific

North

America

China

Africa

Latin

America

Oceania

China Europe Africa Asia Pacific North America Latin America

Headquarters in Shanghai Czech Republic The Netherlands South Africa Australia Malaysia The U.S. Argentina

Denmark Turkey Egypt India Pakistan Canada Brazil

Beijing Hangzhou Shenzhen

France Germany Indonesia The Philippines Mexico

Changsha Hefei Shenyang

Ireland Italy Israel Singapore

Chengdu Huizhou Suzhou

Serbia Poland Japan Thailand

Chongqing Jinan Wuhan

Slovenia U.K. South Korea Vietnam

Foshan Kunming Xi’an

Spain Sweden

Fuzhou Nanjing Zhengzhou

Switzerland

Guangzhou Ningbo Zhongshan

Guilin Qingdao

For reference only. Not an actual map.

11 12Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance 2024 Environmental Social and Governance (ESG) Report

Our Culture Our Products and Services

Mission Vision

Building a Smarter Earth Maximizing Our Cellular Smart Wi-Fi/

Contributions to Global communications

Automotive module Bluetooth

IoT Development 5G 5G/ 4G 5G Wi-Fi 7

4G C-V2X 4G Wi-Fi GE

Driving Development LPWA GNSS Edge computing Wi-Fi 6

Customer-Centric as the Top Priority

People-Oriented 3G/ 2G Smart cockpits Wi-Fi 5Continuously Enhancing

Innovation-Driven Competitiveness Wi-Fi/ Bluetooth Wi-Fi 4

Core Values Business Philosophy BT 5.x

Sub-G (LoRa/HaLow)

Our Business

Quectel specializes in the design R&D manufacturing and sales of IoT wireless communication modules GNSS Satellite Antenna Services and

and IoT solutions offer one-stop IoT solution encompassing wireless communication modules antennas communications Solutions

and IoT software platform services. With a diverse product portfolio and comprehensive functionalities we DR positioning 5G NTN Embedded antenna Software platform

meet various needs of smart terminal markets. Our products can be widely applied in smart transportation RTK positioning Proprietary protocol External antenna services

Certification and

smart energy financial payment systems smart cities wireless gateways smart agriculture and Fusion positioning Cables and Antenna Accessories testing services

environmental monitoring smart industry smart living and healthcare and intelligent security. Timing Automotive antenna QuecRTK

Smart intelligence

World-Leading R&D Capabilities Dual frequency positioning mmWave antenna Smart agricultural

Single frequency positioning solutions

Creating an Industry-Leading Portfolio of Module Products

Integrated antenna

OEM LTE/

IMU

in-vehicle LTE-A Wi-Fi

Software

Platform

Services

A rich product portfolio provides you with one-stop IoT solutions

Antenna

Edge

Computing 5G 2G/3G

Satellite

ODM NB-IOT GNSS Communication

/LTE-M

Focusing on the module market segment providing one-stop IoT solutions centered around modules

Leading innovations in products and technological innovations such as 5G LPWA smart modules C-V2X and

satellite communication modules

Global R&D Network with Eight Centers (Shanghai Hefei Foshan Guilin Wuhan Vancouver Belgrade and Penang)

13 14Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Product Application Scenarios

010203

Intelligent transportation Smart energy Payment

IoV Fleet management Electricity meters Smart grid Wireless POS

CVI OBD Gas meters Wind generators Cash registers

Vehicle tracking DVR Water meters Solar power generation ATM

Asset tracking UBI auto insurance Thermal meters Charging piles Vending machines

Ship tracking Top-up machines

040506

Smart city Wireless gateways Intelligent agriculture &

environmental monitoring

Street lighting Toll collection systems DTUs Food traceability

Traffic lights Digital indicator Consumers routers Farmland monitoring

Sharing economy Advertising boards Industrial routers Farm irrigation

Elevator monitoring Smart bins VOIP Farm management

Smart parking LED landscape Servers Meteorological stations

Parking meters Lighting controls Wi-Fi hotspots Environmental monitoring

Wildlife protection

070809

Intelligent industry Smart life & healthcare Smart safety

Industrial PDAs/ Flowmeters Personal trackers Elderly monitoring Alarms

scanners Industrial refrigeration Pet trackers Patient monitoring Intrusion detectors

Industrial PCs Indoor air detection Wearables Glucometers Smoke detectors

Industrial computers Water valves/ pump Gaming consoles Blood pressure Gas detectors

Pipeline monitoring controls Mobile PCs monitors Motion sensors

Robots UVA Home automation Remote medical

equipment Asset protection

15 16Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Our History

2020 20232021 * Started construction of new

* Established Quectel’s proprietary * Opened R&D center in Guilin global HQ in Shanghai 2024

Intelligent Manufacturing Center

* Established own smart factory * Changzhou smart factory * Launched “Provecta AI” an industrial intelligence brand

* Obtained ISO 27001 certification manufacturing center in 2022 started operation * Introduced the“Yuanzheng FMA”high-precision

Changzhou

* New R&D center opens in navigation and integrated assisted driving system* Opened R&D centers in Penang * Released RedCap/Satellite

Vancouver and Foshan China * Gained ASPICE CL2 approval Malaysia and Wuhan China communication modules * Released Wi-Fi 7 modules supporting AIPC

20192017

* Successfully launched the * Officially released multi-

global 5G module series 2016

2018 mode LPWA modules (BG36/

* Listed on Shanghai Stock BG96) LTE-A modules * Join GSMA

Exchange (stock code: 603236. * Quectel releases its first and automotive-grade LTE * New offices open in the U.K. Germany 2015

SS) C-V2X modules paving the module AG35 laying the Hungary and the U.S. * Quectel’s first smart module within just one

way for integrated assisted

* New R&D center opens in foundation for mass IoT

driving connected roads adoption * “QUECTEL” was recognized as a Shanghai

month

Belgrade

and autonomous vehicles Famous Trademark (21st batch) * New offices in South Korea Turkey and Israel

2010

2012

* Developed a domestic

distributor network and * Recognized as a “High-Tech Enterprise” 2013

began global distributor 2011 * Established the Service Center in Australia 2014* R&D investment increases with expansion of

expansion

* First overseas offices in * Joined GCF (Global Certification Forum) Hefei lab and research center * Offices open in North America Brazil and

* Quectel’s first GSM/GPRS India Singapore and showcasing our global product compliance Denmark* Offices open in France Poland and Taiwan

module the M10 begins Latin America * Further investment in overseas production with (China) further expanding international * Obtained the ISO/TS 16949 Certification

mass production

* R&D center established cooperative factory in Brazil to meet international business confirming our compliance with automotive

* Office open in Shenzhen in Hefei demand industry quality standards

17 18Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Honors in 2024“2024 IoT Product of the Year 2024 CTTA Alliance Partner Market Performance AIoT Xinwei Award – 2024 6th Golden Award – China’s Top 100Award” for Wi-Fi HaLow Module Award – Gold Award for Pan-Smart Terminals “Smart Leadership List and Outstanding Case List” New Automotive Supply Chain Companies

FGH100M 2024 Annual Excellence Award for “Outstanding Case List” and Best Global Expansion Practice Award

Terminal Testing Quality“Outstanding Component Supplier “2024 AIoT Innovative Technology Product

2024 “Global Ecosystem Partner Award” 2024 22nd IOTE Gold Award for Award” of the China Agricultural Award” for High-Performance Intelligent Modules

in the Automotive Supply Chain Innovative Products Machinery Annual TOP50+ Awards

2024 5G IoT Industry Leadership Award 2024 “New Quality Recommendation” AI Innovation Application Award for Industrial

Best Smart Edge Innovation Solution in Intelligence Brand “Provecta AI”

the ICT Industry

19 20Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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ESG Performance Highlights

Economic Performance Governance Performance

Visitors of Investors Responses to e-Interactive Female Representation

Operating Revenue Net Profit Attributable to Shareholders Received Platform Inquiries on the Board

RMB18594.06million RMB588.22million 87 256 20%

Proportion of Major Information

Total Assets

Female Managers Disclosure Violations

RMB12980.19million 21.03% 0

Social Performance Environmental Performance

Total Employee Average Training Hours Labor Contract Social Insurance Total Environmental Environmental Management

Training Hours per Employee Signing Rate Coverage Protection Investment System Certification

279778 58.6 100% 100% RMB0.6444million ISO14001certified

Employees Receiving Total Participants Major Safety R&D Proportion of R&D Expenditure Power Generation from

Our Assistance in Safety Training Incidents Investment in Operating Revenue Renewable Energy Greenhouse Gas Emission Intensity

81 3878 0 RMB1.669billion 8.97% 432000kWh 0.016 tCO2eper RMB 10000 of Rrevenue

Proportion of R&D New Patents Granted Supplier CSR Total Charitable Beneficiaries of Our

Personnel in the Year Agreement Signing Rate Donations Charitable Contributions

71.04% 146 100% RMB0.8968million 1824

21 22ESG Governance

Sustainability Governance Framework 25

Sustainable Development Management Mechanism 25

Materiality Analysis 27Quectel: Empowering a Connected

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2024 Environmental Social and Governance (ESG) Report

Sustainability Governance Framework ESG Oversight Mechanism

The company has progressively established a structured governance framework to oversee the

Quectel has established an efficient working mechanism forming a sustainable development governance implementation of sustainability-related initiatives focusing on role clarification and systematic daily

framework from top management to frontline employees. This structure effectively coordinates and oversight mechanisms. ESG-related performance metrics such as environmental governance pollutant

responds to the demands of stakeholders ensuring efficient and orderly ESG management operations. emissions control product quality assurance supplier management and customer satisfaction are linked

Continuously drive the integration of ESG factors into daily to the performance evaluations of relevant management personnel and teams across business units.o p e rat i o n s a s t h e h i g h e st d e c i s i o n - m a k i n g b o d y fo r E S G We enforce a performance-based incentive and penalty system to recognize outstanding projects and

governance approve and oversee ESG matters strengthen ESG individuals.ESG Decision- oversight functions and ensure the effective implementation of

Making Body

ESG management strategies. ESG Capability Enhancement

Quectel prioritizes ESG communication and professional skill development in sustainable development.Responsible for the overall management and coordination of Annually we invite third-party organizations to conduct ESG training for our employees. In November

ESG-related work the review and verification of ESG reports

2024 Quectel commissioned an external professional organization to conduct internal ESG training

provide recommendations on the formulation and execution of

ESG the Company’s sustainable development plans and ESG-related covering topics such as global and domestic ESG development trends policy updates interpretations

Management

initiatives and ensure close communication and collaboration and ESG indicator system development. The training was participated by more than 40 employees who

with stakeholders on ESG issues. engaged in in-depth discussions on ESG priorities for different functional departments effectively driving

ESG implementation across all levels of the Company.The ESG task force with heads of functional departments and

subsidiaries as the execution team assists the management in ESG Goals

ESG Task effectively implementing and advancing various ESG initiatives in

force Quectel has holistically integrated corporate social responsibility into our corporate development strategy. daily operations.Throughout our growth journey we prioritize close collaboration with stakeholders including suppliers

and clients to achieve mutual benefits and promote coordinated social environmental and economics

Sustainable Development Management Mechanism progress across the industrial chain. In alignment with the United Nations Sustainable Development

Goals (SDGs) we promote sustainability practices in governance product quality innovation-driven

ESG Management Mechanism development low-carbon operations environmental protection employee growth digital intelligence

To advance ESG governance effectively the company has established a structured framework to development and social contributions continuously enhancing our ESG governance effectiveness.periodically identify and systematically analyze environmental social and governance (ESG) risks and

opportunities across operations. Cross-functional review sessions are convened with all departments

and business units to assess material issues followed by formal reporting to executive management. This

enables agile optimization of sustainability-aligned management strategies ensuring enterprise-wide

integration of ESG practices into daily workflows and long-term decision-making.ESG Information Reporting Mechanism

We continue to enhance our sustainability-related information governance frameworkhaving established

a preliminary structure where an ESG Task Force oversees daily data collection analysis and reporting.Moving forward the preparation of annual sustainability reports will serve as the cornerstone for

developing streamlined reporting mechanisms. Meanwhile leveraging a dedicated ESG data aggregation

platform the company is implementing rigorous validation protocols to ensure transparency accuracy

and completeness of disclosed information. This structured approach provides a robust foundation for

advancing the organization's sustainability strategy while aligning with global ESG disclosure standards.

25 26Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Materiality Analysis Stakeholder CommunicationQuectel maintains sustained and proactive dialogue with stakeholders through robust communication

mechanisms and diverse communication channels. The Company actively solicits and incorporates

Double Materiality Analysis stakeholders’ opinions and suggestions and safeguards their rights to participate and be informed

thereby enhancing mutual understanding and fostering a shared sense of purpose aligned with our

Guided by the Double Materiality principle we have identified and prioritized key issues based on our sustainability commitments.unique business model and operational status quo as well as domestic and international sustainability

disclosure standards industry policy guidelines and the key focus areas of authoritative rating agencies in Stakeholders Key Concerns Communication and Response

the capital market such as MSCI. On this basis we employ methods such as materiality surveys and in-depth Investment Returns

Shareholders’Meeting

one-on-one interviews with stakeholders to assess the importance of each issue from both its actual impact Protection of Shareholder Rights and Interests Improving risk management

on business operations and its financial relevance. This ensures that we can focus on critical areas in our Stable Performance Growth Investor reception and communication

Information Disclosure

strategic planning and daily operations driving sustainable development. Investors Official website and announcementsCorporate Governance

Investor hotline

IPR Protection

Understand the Company’s Context

Conducted research on our internal and external environment as well as sustainability Regulatory Requirements Cooperate with regulatory inspections

Tax Compliance Compliance with laws and regulations

01 trends capturing the core concerns and expectations of key stakeholders. Internally Legal Publicity Daily Communicationwe thoroughly examined our organizational structure business processes and Regulators Business Ethics On-site InspectionStep 1 technological capabilities. Externally we closely monitored macroeconomic trends Responding to Development Policies Integrity

regulatory changes and market competition dynamics.Product Security and Quality Customer service hotline

Establish an Issue List Product R&D and Innovation After-sales service

02 Based on the 21 issues outlined in the Shanghai Stock Exchange’s Guidelines we Customer Services On-site communicationidentified issues tailored to our specific characteristics and ultimately compiled a list Customer Privacy and Security Company mailboxStep 2 of 27 relevant issues based on regulatory policy guidance industry standards market Customers Digital Intelligence Development Customer satisfaction survey

trends and best practices of benchmark companies in the industry. Smart Product Design Information security management

Materiality Assessment Contributing to the Development of Digital Field visit surveys

03 Through methods such as in-depth interviews and materiality surveys on impact

Intelligence

Responsible procurement and

Supplier Management

importance and financial importance (with a total of 146 responses) we gathered marketing

Step 3 University-Enterprise Cooperationdiverse stakeholder perspectives and incorporated expert opinions from both internal Suppliers and Review and evaluation

the Industry Integrity and Reciprocity

and external sources. Each issue was assessed based on its impact on the Company’s Cooperation agreementsBusiness Ethics

operations and its financial importance.Labor contracts

04 Issue Analysis and Disclosures

Remuneration and Benefits

Employee activities

We consolidated the assessment results of impact importance and financial Protection of Rights and Interests Feedback

Step 4 Training and Career Development Mechanismimportance and established a double materiality analysis matrix based on our Training and activities

Employees Employee Careoperational management capabilities. Annual conferenceDemocratic Management

Opinion expression channels

Public Welfare Official website

Employment Promotion Product R&D

Rural Vitalization Local recruitment

Community Smart Product Design WeChat official account

Economic Performance Media interactions

Development Strategy Disclosures

Environmental Management WeChat official account

Media and the Public Social Responsibility Press conference

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2024 Environmental Social and Governance (ESG) Report

Conclusion of Materiality Assessment Issues in 2023 Issues in 2024 Change Reasons for Change

In 2024 the Company identified 27 material ESG issues based on policy benchmarking industry analysis Contributing to Industry Industry Development —— ——

Development

and the 2023 ESG issues including 9 environmental issues 13 social issues and 5 governance issues.Aligned with SSE

—— Rural Vitalization New addition

Guidelines’21 ESG topics

Issues in 2023 Issues in 2024 Change Reasons for Change Aligned with SSE

—— Social Contributions New addition

Guidelines’21 ESG topics

Aligned with SSE

—— Climate Change Response New addition

Guidelines’2 1 ESG issues Contributing to the Contributing to the

Development of Digital Development of Digital —— ——

—— Pollutant Emissions New addition

Aligned with SSE Intelligence Intelligence

Guidelines’2 1 ESG issues

—— Waste Disposal New addition

Products and Designs to

Smart Product Design —— ——

Aligned with SSE Improve Social Well-Being

—— Ecosystems and Biodiversity New addition

Guidelines’21 ESG issues

Corporate Governance

Environmental Compliance Aligned with SSE Some issues were modified and

—— New addition

Management Guidelines’2 1 ESG issues Risk Compliance Adjustment consolidated to better align with the

Compliant Operations industry’s common expressions

Some issues were modified and

Energy Conservation and

Energy Utilization Adjustment consolidated to better align with the

Consumption Reduction

industry’s common expressions Business Ethics and Business Ethics and —— ——

Anti-Corruption Anti-Corruption

Aligned with SSE

—— Water Resource Utilization New addition

Guidelines’21 ESG topics Aligned with SSE

—— Anti-Unfair Competition New addition

Aligned with SSE Guidelines’21 ESG topics

—— Circular Economy New addition

Guidelines’21 ESG topics

Protection of Investor Some issues were modified

—— New addition

Green Office Some issues were modified and Rights and Interests and consolidated

Green and Low-Carbon

Adjustment consolidated to better align with the

Operations

Green Products and Services industry’s common expressions

Product Security and Quality Product Security and Quality —— ——

Customer Service Customer Service —— ——

Product R&D and Innovation Some issues were modified and

Innovation-Driven

Adjustment consolidated to better align with SSE

Development

IPR Protection Guidelines’21 ESG issues

Supply Chain Management

Supplier Management —— ——

and Green Procurement

Employee Remuneration Employee Rights

————

and Benefits and Interests

Occupational Health Occupational Health

————

and Safety and Safety

Employee Training Employee Training

————

and Development and Development

Data Security and Data Security and

————

Privacy Protection Privacy Protection

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2024 Environmental Social and Governance (ESG) Report

For issues with significant financial materiality Quectel conducts in-depth analysis respond to stakeholder

Assessment Results of Material Issues expectations identify potential impacts risks and opportunities. These findings are then systematically

categorized and evaluated based on the unique attributes and characteristics of each issue ensuring strategic

prioritization and resource allocation.Material Issues Risk/Opportunity Impact Financial

Financial

Description Impact Impact Mitigation MeasuresDuration

Inadequate quality control of

14 10 Product Short-

Integrate procurement R&D production sales

products and services may affect

15 11 Security and High medium-

finance and other data to enhance execution and

our reputation and may weaken control capabilities in production and operations

12 Quality and long-term

6 17 our competitiveness in the market.

continue to strengthen product production

26 control ensuring the growing demand for

23 18 16 Customers increasingly shift downstream orders and providing global 24 13 21 toward green low-carbon and customers with products of reliable quality.

25 27 5 energy-efficient products. Failure 3 Short- Establish a dedicated marketing and technical

22 Customer to align product development Medium-high medium- and support team to enhance localized service

Service with these evolving demands may

9 long-term capabilities in domestic and international

7 8 result in losing market share and markets. Strengthen collaboration with global

2 20 customer base hindering long- telecom operators and chip suppliers to

term business growth. accelerate market expansion.Continuously enhance technological innovation

4 capabilities and invest in R&D and talent

19 development;*

1 Lengthy product development Develop new products based on market demand

Innovation- cycles high capital investment Short- optimize industrial collaboration and refine

Low Importance to the Company's finance High Driven and complex inconsistent High medium- and our operational and management systems to

Development hardware testing standards may long-term strengthen brand value and competitiveness;*

lead to increased R&D costs. Ensure fast growth in wireless communication

With importance With both financial With neither With financial modules while investing in antennas software platform services ODM solutions industrial

but no financial and impact financial nor impact importance but no intelligence and other business.importance importance importance impact importance

Market changes industry

developments and other factors

may lead to raw material shortages

Environmental Issues Social Issues Governance Issues Supply Chain or rising procurement costs. If key Continuously monitor raw material market

Short- trends optimize supply chain management

Management raw materials become scarce or

Medium-high medium- maintain close relationships with suppliers

1 Climate Change Response 10 Product Security and Quality 23 Corporate Governance and Green prices surge significantly and we and long-term and enhance supply chain resilience to mitigate

Procurement fail to pass these costs down the market volatility risks.

2 Pollutant Emissions 11 Customer Service 24 Business Ethics and supply chain in time it may impact

3 Waste Disposal Innovation-Driven Development Anti-Corruption our revenue and raise operational 12 costs.

4 Ecosystems and Biodiversity 13 Supply Chain Management and 25 Anti-Unfair Competition

Green Procurement 26 Compliant Operations Poor cybersecurity management

Conduct regular information security audits and

5 Environmental Compliance Data Security and employee lacking Short- employee cybersecurity training continuously

Management 14 Employee Rights and Interests 27 Protection of Investor Rights and Privacy cybersecurity awareness may pose Medium-high medium- strengthen security measures for IT management

platforms and enhance access control

6 15 and Interests Protection risks such as data breaches and and long-termEnergy Utilization Occupational Health and Safety mechanisms to defend against external cyber privacy violations. threats.

7 Water Resource Utilization 16 Employee Training and Development

Contributing The rise of artificial intelligence Strengthen investment in technology R&D and

8 Circular Economy 17 Data Security and Privacy Protection to the and intelligent technologies is establish dedicated teams for smart scenarios

driving new IoT applications Medium- explore the innovation and integration of cutting-9 Green and Low-Carbon 18 Contributing to Industry Development Development and accelerating industry and long-term edge digital intelligence technologies in product

Operations of Digital 19 Rural Vitalization transformation. design to continuously enhance smart product Intelligence functionality and competitiveness.Continuous investment in Medium-high

20 Social Contributions technology upgrades and talent Provide internal digital intelligence training for

21 Contributing to the Development development is required;* failure to Medium- employees to improve their capabilities and Smart Product do so may result in elimination from recruit top-tier professionals in the smart product

of Digital Intelligence Design the market due to underdeveloped and long-term domain to support corporate growth.

22 Smart Product Design technologies.

3132

High Importance of economic social and environmental impactsEnvironment

Climate Change Response 35

Environmental Compliance Management 39

Emissions Management 43

Optimizing Energy Management 48

Enhancing Water Resource Utilization 51

Promoting the Circular Economy 52

Safeguarding the Ecological Environment 53

Green and Low-Carbon Operations 54Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Identification of Climate Risks and Opportunities

Climate Change Response Brown Scenario (RCP8.5)

As a leader in the telecommunications industry Quectel recognizes the urgent global challenge of climate Risk Type Risk Description Mitigation Measures Impact Impact

change and is committed to pioneering sustainable pathways. Through cross-sector collaboration we Severity Duration

actively dirve the implementation of climate action initiatives contributing to global efforts to mitigate Develop emergency response plans for

climate risks. Leveraging our technological expertise Quectel provides innovative solutions that typhoons floods earthquakes and other Extreme weather events and extreme weather events.accelerate the energy transition and advance low-carbon development worldwide delivering the“Quectel climate-related disastersmay damage facilities Strengthen weather monitoring and Approach”to a climate-resilient future. Acute and buildings endanger forecasting capabilities to enhance

Climate preparedness. Moderate Short-term

Climate Change Governance employee safety and Risks disrupt production resulting Boost equipment maintenance and

in reduced asset value or

Against the backdrop of global climate imperatives we and our subsidiaries’Environmental Health and inspections to ensure stable operation.Physical shortened asset lifespan.Safety (EHS) Departments have spearheaded climate-aligned energy governance. Guided by policies such Establish plans for material storage and Risks inventory backups.as the Energy Consumption Management System we formulate energy management policies aligned

with climate governance requirements and systematically and promptly identify existing and potential Long-term climate change Ensure protective storage of goods and raw

climate-related risks affecting our operations. Each production facility under the guidance of their EHS and rising sea levels may materials during the rainy season.Chronic pose threats to equipment;* Medium-

Department establishes energy efficiency task forces and other organizational structures to propose green Provide heat-relief supplies under high-Climate Global warming may lead temperature conditions. Low and long-

technology retrofit initiatives. Business units actively respond to EHS initiatives working collaboratively Risks to equipment overload term

to reduce energy consumption at the source and lower greenhouse gas (GHG) emissions. Through joint reducing service life and Alternate usage of high- and low-power increasing electricity costs. equipment to extend equipment lifespan.efforts we strive to achieve emission reduction targets and contribute to climate change governance.Climate Change Strategy Turquoise Scenario (RCP2.6)

Climate Scenario Analysis Risk Type Risk Description Mitigation Measures Impact Impact Duration Severity

In recent years extreme weather events such as heatwaves heavy rainfall typhoons storm surges As China advances its

and saltwater intrusion and seawater encroachment have become more frequent. Climate issues in Closely monitor domestic and international “dual carbon” goals and

environmental regulations climate- and carbon-related laws

regions such as the Yangtze River Economic Belt and the Guangdong-Hong Kong-Macao Greater Bay become more stringent our regulations and policy developments.Area face compounded challenges where climate impacts intersect with population density resource overall energy transition costs Optimize our energy mix increase the increase along with mounting

constraints and environmental pressures resulting in significant risk aggregation cascading effects and pressure to reduce emissions and use of clean energy adopt energy-saving

Policy Risks and improve resource efficiency. equipment implement cleaner production Short-term Moderate

amplification. Quectel and our subsidiaries operate primarily within these climate-vulnerable regions practices and reduce reliance on fossil fuels.Opportunities Our products exported overseas

we proactively assess climate-related impacts on our business operations. During the reporting period may face requirements and Closely monitor overseas ESG compliance

we proactively conducted climate scenario analysis for two types of scenarios namely the Turquoise constrains in areas such as requirements assess export-related costs carbon tariffs carbon footprint in a timely manner and adjust business

Scenario (low emission) or RCP2.6 and the Brown Scenario (high emission) or RCP8.5 with reference and compliance with foreign ESG planning accordingly.to the recommendations of the TCFD Scenario Analysis Guidelines. The aim is to continuously improve Transition

standards.Risks

our climate resilience strategies through science-based analysis so as to better address the challenges Proactively expand into green products new

energy and various intelligent application

brought about by climate change. Upgrading to clean technologies scenarios and continuously make efforts in

and greener processes increases sectors such as new energy vehicles smart

Turquoise Scenario Brown Scenario R&D complexity and may lead to agriculture and solar photovoltaics to

(Temperature Rise ≤ 2° C) (Temperature Rise >2° C) Technology Risks asset impairment. enhance product competitiveness.Under this scenario nations This baseline scenario assumes and Opportunities

Medium-

Failure in investing in new Continuously increase research into the High

adopt aggressive policies and no climate policy intervention technologies or equipment may feasibility of developing and applying low-

term

RCP2.6 RCP8.5 cause us to lag behind our peers carbon technologies.measures over the next decade leading to high GHG emissions

to significantly reduce GHG and excessive energy

in the low-carbon transition. Actively engage in industry collaborations to

emissions limiting global consumption. By 2100 global

jointly promote the adoption of green and

low-carbon technologies with upstream and

temperature rise to below 2° C. CO2concentrations would be 3–4 downstream partners.times pre-industrial levels.

35 36Quectel: Empowering a Connected

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2024 Environmental Social and Governance (ESG) Report

Risk Type Risk Description Mitigation Measures Impact Impact Duration Severity Climate-Related Indicators and Targets

Continuously improve the R&D

capabilities for new products and GHG Emissions Management

application scenarios expand into

Market Risks and Market demand for high-energy- smart vehicles smart energy ecological Medium-

Opportunities efficiency and green products is monitoring the sharing economy and and long- High

rising. other scenarios and provide customers term GHG Emissions Performance

with effective low-carbon products and

services to increase market share at 指标 单位 2024 年

home and abroad.Transition

Risks The Company is under Scope 1 GHG Emissions tCO2e 38.80

increasing scrutiny from

regulators investors and the

Place strong emphasis on ESG practices Scope 2 GHG Emissions tCO 30520.05

Reputational Risks public. Poor performance Medium-

2e

continually improve the business

and Opportunities in environmental or social environment and expand the service and long- Low

responsibility may adversely term Carbon Reduction from Renewable Energy tCO2e 231.81chain both upstream and downstream.affect financing opportunities

brand value and corporate Total GHG Emissions tCO2e 30327.04

reputation.Note: Short-term: within 1 year;* Medium-term: 1–5 years;* Long-term: over 5 years. GHG Emissions Intensity tCO2e per RMB 10000 of revenue 0.016

Climate-Related Impact Risk and Opportunity Management Note: Scope 1 GHG emissions refer to direct emissions from gasoline consumption by the Company’s business vehicles. Scope 2

emissions refer to indirect emissions from the consumption of purchased electricity and heat. Emission calculations are based on the

Quectel prioritizes the proactive management of climate-related impacts risks and opportunities. Guidelines for Accounting and Reporting of Greenhouse Gas Emissions in Electronic Equipment Manufacturing Enterprises. The emission

factor for purchased electricity is calculated with the national average electricity emission factor from the Announcement on the 2022

Through various initiatives such as supplier ESG governance responsible procurement R&D innovation Electricity Carbon Emission Factor.The statistics cover energy consumption at Quectel headquarters Quectel Changzhou and electricity

contributions to digital intelligence development and environmental compliance frameworks we actively consumption of all global offices.enhance our resilience to climate risks while safeguarding operational stability and fostering sustainable GHG Emissions Reduction Initiatives

growth.Use of Renewable In October 2024 our rooftop distributed photovoltaic (PV) project was officially put into

Energy operation reducing electricity consumption by approximately 432000 kWh equivalent

01 02 0 to a decrease of approximately 231.81 tons of CO2 emissions. The project is expected to Step 1 Step 2 Step3 3 0Step4 4 reduce annual electricity consumption by approximately 2.4 million kWh in 2025 equivalent to a reduction of around 1548 tons of CO2 emissions. Our internal energy conservation

management participation in electricity market trading energy-efficient air compression

system upgrades and other initiatives are expected to generate economic benefits of

approximately RMB 1.544 million per year in 2025.Understand Identify and Develop Climate Disclose

Business Activities Assess Climate- Response Climate-Related Energy Consumption Energy consumption and pollutant emissions Monitoring

and Operating Related Risks and Strategies Management across various units are monitored and reported

Context Opportunities Information quarterly and relevant data is consolidated and

reported regularly.Gain a comprehensive Identify the potential Formulate and Regularly disclose

understanding of impacts risks and implement targeted information regarding Energy-Efficient

the Company’s opportunities under strategies in Our dormitories are fully equipped with the the identification Equipment

operations business both high- and low- 100% air-source heat pump and water heater response to the and management of

structure and emission scenarios;* system. These systems efficiently convert evaluated climate- climate-related risks heat from ambient air to supply hot water

relationships external and assess the impact related risks and and opportunities significantly reducing electricity consumption

environmental severity and duration opportunities while meeting daily hot water needs in a green Rooftop PV Panels at Quectel Changzhou

influences and of the identified and low-carbon manner.affected stakeholders climate-related risks

37 38Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance

2024 Environmental Social and Governance (ESG) Report

Environmental Compliance Management Environmental Risk Assessment and Response

Environmental Management Framework Environmental Emergency Response Management

To address potential environmental emergencies we have established an emergency response team for

Quectel strictly adheres to regulations across all operational jurisdictions and has developed environmental emergencies and developed a series of Emergency Response Plans for Major Incidents. As

environmental compliance framework including the Environmental Inspection and Monitoring a company classified under general environmental risk we are committed to minimizing environmental

Management Standards and the Hazardous Chemicals Safety Management Protocols and continuously impact through well-structured emergency plans and rapid response.enhancing our environmental management system.Environmental Emergency Response Plans

Subsidiaries have established a three-tier environmental governance framework with clearly defined

responsibilities at each level. The executive management team is responsible for oversight while the

Flood Typhoon and Earthquake Emergency Response Plan Hazardous Chemical Spill Emergency Response Plan

heads of our branches subsidiaries and business entities take charge of coordination. Under them the

Environmental Health and Safety (EHS) Department is tasked with executing environmental management Fire Emergency Response Plan Radiation Emergency Response Plan

at factories. The tripartite governance model ensures efficient environmental stewardship. Additionally

Water Supply Interruption Emergency Response Plan Forklift Accident Emergency Response Plan

we have implemented a system of environmental stewardship. Environmental performance is incorporated

into the annual performance appraisal of key management personnel and a corresponding rewards and Power Outage Emergency Response Plan ......penalties mechanism has been established.Management Team

Commander

Heads of Branches

and Subsidiaries Each department or area supervisor serves as the Commander. In the event of a chemical spill the

responsible person shall promptly establish a temporary emergency response team within their department

Plant Operations or the region to facilitate emergency response efforts. They also cooperate with the Company or external

and EHS Department

emergency response entities to implement emergency rescue. Furthermore they are responsible for

promptly reporting to their higher-level department the status of on-site response actions any personnel

Power Technology EHS injuries and the operational condition of equipment and facilities.Facilities Division Division

Quectel’s Environmental Management Structure On-Site Emergency Response Team On-Site Emergency Medical Team On-Site Emergency Communication Team

This team is tasked with This team provides first aid to the This team is in charge of

During the reporting period implementing on-site emergency injured at the scene promptly executing both horizontal

response measures such as notifies nearby hospitals and and vertical communication

blocking the source of a chemical reports injury details to the as instructed by the

We invested RMB 0.6444 million in environmental spill. In case of an emergency Commander. Commander. It is responsible

protection accounting for 0.0035% of total the team must promptly shut for communicating instructions

operating revenue;* off power supplies gas lines from higher-level authorities to

and chemical leak sources at team members gathering and

Our factories and partner factories 100% pass the scene to minimize damage reporting employees’n eeds to

ISO 14001 Certification to equipment and products higher-level authorities and

prevent injuries and avoid contacting other departments as

escalation of the incident. required by the Commander.ISO14001 Certification 突发环境事件应急小组

Emergency Response Team for Environmental Emergencies

39 40Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Environmental Risk Identification and Control Raising Environmental Protection Awareness

We have developed the Environmental Risk and Opportunity Management Standard identifying assessing Quectel fosters a culture of environmental stewardship and resource efficiency by empowering employees

and monitoring environmental impacts across our production and operational processes. We conduct to embrace eco-conscious responsibilities. We place strong emphasis on low-carbon practices and

comprehensive reviews and risk analyses and develop tailored management plans with targeted controls environmental education. Through a combination of environmental training online and offline activities

to effectively reduce risks. group discussions and themed campaigns we actively promote knowledge on energy conservation and

t m

a

esen F

r l

u o E emissions reduction continuously enhancing employees’a wareness of sustainable practices and fostering

r tu b

n m

a company-wide culture of low-carbon work and lifestyle.Timeframes States of Operation 2024 Environmental Protection Training

Physical Factors

Workplace Activities Total training hours Total participantsChemical Factors

Biological Factors Sources Supplier OperationsEnvironmental Related

Psychological and of Risk Risk Factor Material and Equipment

2751106

Activities

Physiological Factors Factors Identification Shipment and Installation

Behavioral Factors Waste Disposal and

Shipment

Other Factors The training covered interpretations of environmental

Environmental Protection regulations and client-specific environmental requirements

Environmental Risk Identification Process Training

effectively strengthening employees’ sense of environmental

Environmental Risk Control Measures responsibility and their capacity for action laying a solid

foundation for our green development.To strengthen risk prevention and control we have established the

Risk Assessment Risk Assessment Team. A five-tier risk rating system is used to classify We organized multiple campaigns and activities on topics such as

potential risks as Minor Moderate Significant High or Extreme. Based on Environmental Protection

the quantitative assessment of these risk levels corresponding control energy conservation low-carbon office initiatives and protecting

Promotion and ESG-Themed

measures are implemented. the planet through low-carbon actions. These init iatives

Activities

enhanced employees’environmental awareness and encouraged

Shipment Management: Shipment of hazardous chemicals strictly active participation in environmentally responsible behaviors

Hazardous Chemical follows designated routes and timeframes. The safety status of vehicles is and low-carbon living.Management monitored to ensure secure and orderly transit.Storage Management: Dedicated hazardous chemical storage zones are

set up and managed based on chemical properties ensuring incompatible

substances are stored separately to prevent hazardous reactions.Usage Management: Employees handling hazardous chemicals must strictly

follow operational protocols and wear appropriate personal protective

equipment (PPE) to minimize operational risks.Management of Recycling Discharge Treatment and Destruction:

Hazardous chemical recycling discharge treatment and destruction

processes are conducted in strict compliance with laws and regulations to

Emergency Drill for Chemical eliminate environmental pollution.Spill Response Training and Drills: Regular training sessions on handling chemicals

and hazardous substances are provided covering topics such as safety

knowledge operational procedures and emergency responses to chemical

spills. Emergency drills are conducted to enhance employees’ response Environmental Design Show

41 capabilities and ensure the effective implementation of safety protocols. 42

Past P

Normal A

rgencye

reQuectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Emissions Management Building Intelligent Platforms Smart Regulation and Control

Quectel strictly adheres to China's environmental regulations including I n n o v a t i v e l y d e v e l o p t h e I oT- b a s e d Le verage the platform to implement

the Law of the People’s Republic of China on Prevention and Control In 2024 secondary sewage interception well and intelligent detection and alarm systems in

of Environmental Pollution by Solid Waste the Atmospheric Pollution water environment management platform key areas and enable IoT-based control

Prevention and Control Law of the People’s Republic of China the Water N O w h i c h i n t e g r a t e s a n d a n a l y z e s r e a l - of secondary sewage interception wells to W e h a d

time data from water quality monitoring automatically activate pump stations and Pollution Prevention and Control Law of the People’s Republic of China and environmental adjust their operation accordingly in dry

the National Catalogue of Hazardous Wastes. We have established the Solid stations pump stations and the Company. Water

violations. Environment or rainy seasons.Waste Management regulations and hold a valid pollutant emissions permit.We have achieved remarkable results in pollutant emissions control ensuring Management

no adverse impacts on the surrounding environment or communities. Initiatives

Rainwater is discharged through pipelines

Waste Gas and Wastewater Management U p g r a d e t e r m i n a l r a i n w a t e r w e l l s o r during clear weather while the initial

pipel ines under the separate drainage r u n o f f i s t ra n s p o r te d to t h e s e wa ge

Quectel rigorously implements environmental protection requirements and conduct regular monitoring system and connect them to the platform network. The entire process is traceable

of waste gas and wastewater emissions to ensure full compliance with regulatory standards. We optimize via optical fiber or mobile networks. and monitorable.processes and adopt low-emission technologies to minimize emissions from our production activities.Drainage Node Upgrades Classified Rainwater Treatment

Primary Pollutants Emission Type Treatment Measures

Waste Gas and Wastewater Discharge

Volatile Organic Dust removal facilities (baghouse

Compounds Indicator Unit 2024dust collectors + secondary

(VOCs including Organized and activated carbon adsorption) and

non-methane unorganized VOC treatment facilities Waste Gas Emissions

Waste Gases hydrocarbons) emissions Routine maintenance and

particulate matter upgrades of emission treatment Particulate Matter (PM) Tons 0.043

and tin dioxide) equipment Waste Gas Treatment

Equipment Volatile Organic Compounds (non-methane hydrocarbons) Tons 0.994

Domestic sewage Wastewater Discharge

Chemical Oxygen

Demand (COD) Indirect Domestic sewage is treated via anaerobic Total Wastewater Discharge Tons 40326.73

ammonia nitrogen discharge fermentation in septic tanks before being discharged

Wastewater to municipal wastewater treatment facilities.suspended solids COD Chemical Oxygen Demand (COD) Tons 20

etc.Suspended Solids (SS) Tons 16

Ammonia Nitrogen Discharge Tons 1.8

pH Value mg/L 6~9

Animal and Vegetable Oils Tons 8.1

Wastewater Discharge Intensity Tons per RMB 10000 of revenue 0.02

(Scope: Quectel Changzhou)

Secondary Sewage Interception Well Process Upgraded Stormwater Well

43 44Quectel: Empowering a Connected

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2024 Environmental Social and Governance (ESG) Report

Waste Management Hazardous Waste Management Measures

Quectel places a high premium on the monitoring and management of waste emissions regarding

it as a critical component of our environmental protection efforts. We have established well-defined

organizational structure for solid waste management with clear accountability the factory General Install new waste gas purification equipment (secondary activated

Manager oversees the pollution prevention and control of hazardous waste and strictly reviews and carbon filtration system) in hazardous waste storage areas to reduce

approves relevant prevention plans the Plant Operations and EHS Department is responsible for drafting VOC emissions.and revising solid waste management policies supervising their implementation conducting daily Standardized Labeling System: Use green labels for recyclable waste

prevention and control work maintaining accurate records and ensuring timely disposal of hazardous and red labels for hazardous waste.waste ensuring the steady progress of our waste management practices.Improved Collection and Record Management: Clarify the location of

Waste Management Goals

waste collection points record in detail the transfer information and

All non-hazardous waste will be uniformly and hazardous substances and place hazardous waste identification signs

compliantly handled by qualified third-party Hazardous Waste

service providers. in facilities and places where such waste is collected and stored. Sorting and Recycling

100% of hazardous waste will be treated

and rendered harmless by third-party service

providers. Waste Generation

Waste Category Unit 2024

Primary Pollutants Treatment Measures

Total Waste Generated Tons 59.95

Recycling and reuse of certain waste

Waste solder paste household waste Hazardous (Dangerous) Waste Generated Tons 59.68materials

Non-hazardous baghouse dust reverse osmosis

Waste membranes and construction debris Centralized collection and transportation Non-hazardous Waste Generated Tons 0.27

by qualified third-party providers

(Scope: Quectel Changzhou)

Used activated carbon waste cleaning Comprehensive utilization after

Hazardous solution defective products used rags incineration or harmless treatment

Waste waste filters packaging waste and used Entrusted to certified hazardous waste

cleanroom cloth disposal service providers

45 46Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Cleaner Production Optimizing Energy Management

Quectel actively promotes cleaner production by prioritizing the use of clean energy and adopting

production processes and equipment with lower pollutant emissions. To ensure efficient implementation

a robust cleaner production supervision mechanism has been established featuring regular inspections Energy Consumption Management System

and assessments of all production stages to promptly identify and resolve potential issues. In 2024 5

cleaner production proposals from Quectel Changzhou passed the cleaner production audit achieving Quectel strictly adheres to the Energy Conservation Law of the People’s Republic of China and other

Level II (Domestic Advanced Level) certification in the electronic component manufacturing sector under relevant regulations and continuously improve our energy management system. We have formulated

China's Cleaner Production Evaluation System. the Energy Consumption Management System under which different business areas implement tailored

energy conservation measures based on their specific operational characteristics. This helps standardize

Key Cleaner Production Initiatives daily energy management across operations and production activities.Stencil Squeegee Upgrade Project：

We launched a project to upgrade our stencil squeegees by replacing traditional solder paste printing

blades. This significantly reduced solder paste waste as well as the consumption of fresh water and

cleaning agents leading to an annual reduction of 0.888 ton of cleaning wastewater and an estimated

economic benefit of RMB 1.55 million/yr.Cleaner Production Training：

Energy Data Comprehensively collect energy consumption data such as

We organize training sessions on cleaner production and equipment maintenance to improve Collection and water and electricity across all managed sites and ensure data

employees’o perational skills and environmental awareness ensuring a green stable and efficient Consolidation accuracy before consolidation.production process.Analyze energy consumption mixes trends and indicators

Energy Consumption with science-based methodologies based on compiled energy

Noise Management Analysis statistics.Quectel places great emphasis on noise management and

control and strictly adheres to the Environmental Noise Emission Formulation and Identify high energy-consuming or optimization-prone processes

Standard for Industrial Enterprises at Boundar y . We have Implementation of based on analysis outcomes propose technical upgrade

installed sound barriers and other noise-mitigation infrastructure Technical Upgrade Plans solutions and implement them after feasibility evaluation.to block transmission paths and provide employees with

professional personal protective equipment(PPE) and effective Abnormality Analysis Promptly investigate the root causes upon detecting abnormal

noise protection gearto holistically reduce the impact of noise.Noise Protection Equipment and Corrective

consumption in regular monitoring formulate corrective measures

Action and implement them in a timely manner to minimize waste.Energy Consumption Management Procedure

Energy Conservation and Consumption Reduction Measures

Energy conservation is a key aspect of Quectel’s refined management approach. In 2024 we launched

several energy-saving initiatives leveraging technological innovation equipment upgrades process

optimization and management enhancements to fully tap into energy conservation potential and

continuously improve energy efficiency.

47 48Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

System Energy Saving Measures Energy Saving Outcomes Case Green and Energy-Efficient Dormitory Building

Reconfigure the number and timing of existing lighting fixtures based

Lighting Optimize corridor lighting in

on actual usage saving approximately 53000 kWh of electricity and

System workshops and dormitories The supporting dormitory building for Quectel Changzhou

reducing electricity costs by around RMB 40000

wireless communication module facility adopts a thermal

Optimize the system logic

Adjust the load of air conditioning units to avoid unnecessary high- bridge design with composite insulation materials and

and adjust air conditioner

load operations helping reduce inefficient energy consumption.systems Low-E glass for enhanced heat insulation performance.Implement production shifts Built-in louver blinds also help regulate indoor lighting

to ensure the temperature and temperature. Evaluations show the building meets the

and humidity level of the Precisely control cold storage energ y use helping eliminate 65% energy-saving target of Jiangsu’s residential building

stereoscopic warehouse and unnecessary power consumption.energy efficiency standard and fully complies with green

shut down unnecessary plant

Air equipment and facilities building design requirements.Conditioning

System Seal reserved ventilation

Avoid energy waste caused by poor closure of ventilation openings

openings in workshops with

reserved for workshop exhaust and air conditioning in the mezzanine.plastic film Energy Consumption Overview

We recycle heat in workshops in winter to raise hot water Energy Mix Unit 2024

Optimize automatic control temperature by adjusting the load of heat recovery chillers. This

logic for heat recovery is expected to reduce steam consumption by 60 days in 2025

Total Purchased Electricity Million kWh 56.7793

systems generating a daily cost saving of RMB 9000 while maintaining

temperature and humidity levels required by production processes.Purchased Steam Tons 1423

Use low-power air

Innovative Air Adopt low-power air compressors for laboratory use during shifts

compressor system for Total Gasoline Consumption Liters 17232.21

Compressor and holidays to avoid activating high-power equipment leading to

laboratory use during

Management annual cost savings of approximately RMB 220000.production shifts Total Comprehensive Energy Consumption Tons of standard coal 7013.16

Onsite nitrogen generation helps prevent energy loss during low-

Minimize liquid nitrogen Tons of standard coal per

Nitrogen temperature storage and long-distance transportation of liquid Energy Intensity 0.004consumption and increase RMB 10000 of revenue

Usage nitrogen.reliance on nitrogen

Management Real-time adjustment of liquid nitrogen production helps reduce Total Renewable Energy Consumption Thousand kWh 432generators

evaporation losses from storage.Proportion of Renewable Energy Consumption % 1.1

Conduct regular inspections of air compressor and air conditioning pipelines to detect and repair

Maintenance leaks or insulation damage in a timely manner reducing failure rates. Note: Renewable energy is derived from rooftop distributed photovoltaics which began operation in October 2024. The

and Upkeep Monitor power compensation devices to ensure our power factor remains above 0.9. statistics cover Quectel Headquarters global offices and Quectel Changzhou.Utilize BMS (Building Management System) to monitor energy and equipment in real time enabling

accurate tracking analysis and digital management of electricity water and gas consumption

across facilities.Use of Low-Power Compressors During Holidays Sealing of Reserved Ventilation Openings

49 50Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Enhancing Water Resource Utilization Promoting the Circular Economy

At Quectel we adhere to the Circular Economy Promotion Law of the People’s Republic of China and the

At Quectel we strictly comply with the Water Law of the People’s Republic of China and other relevant

14th Five-Year Plan for Circular Economy Development continuously optimizing resource utilization and

laws and regulations and have introduced various water resource management measures to strengthen

strengthening the recycling and reuse of materials.management. A dedicated water resource management team has been established to effectively drive

the implementation of water-saving initiatives. Our water resources are primarily sourced from municipal

water supply and rainwater harvesting and are used in both production and daily operations.Recycling of Waste Reusable Packaging Raw Material Circular Awareness

Water Conservation Measures Materials Materials Management Fostering

Water Use Management

Classify and recycle Continuously enhance Systematically manage Regularly organize

Conduct regular inspections and maintenance of pipelines to minimize water loss due to any leakage. waste solder paste the reuse rate of raw materials to ensure activities themed

Water meters are installed for real-time monitoring and to evaluate water usage costs helping reduce reverse osmosis packaging materials accurate tracking of around the circular

unnecessary consumption. membranes and such as cardboard boxes inventory levels and economy such as

other materials in and pallets standardize consumption cycles creative design contests

Production Water Recycling collaboration with recycling processes leverage the intelligent handcraft workshops to

Establish a closed-loop water circulation system between washing machines and rinse lines. certified recycling for boxes through stereoscopic warehouse enhance employees’

When equipment is in normal operation and does not require maintenance the system maintains providers to ensure coordination with to enable real-time environmental awareness

continuous circulation to maximize water efficiency. proper reuse. packaging providers monitoring of raw and encourage them

and maintain a pallet material usage and to adopt sustainable

Rainwater Harvesting and Reuse return log to regularly storage ratios and built practices.Rainwater is collected via dedicated pipelines and treated through first-flush and filtration systems collect usage rates and the warning mechanism

before being stored in polypropylene (PP) rainwater tanks. After disinfection and purification the promote reuse. to prevent waste and

treated water being up to standard is reused for landscaping irrigation road spraying and other overstocking.applications. Circular Economy Initiatives

Water Consumption Case “Recycling Everywhere – Let’s Go Green with Quectel”

Indicator Unit 2024 年 In April 2024 in celebration of Earth Day we launched a company-wide circular economy campaign.Employees were encouraged to use both sides of printing paper and reuse courier packaging materials

Total Water Consumption (Municipal Supply) Cubic meters 192677.69 thereby improving resource efficiency. During the“Books for Veggies”event employees exchanged

second-hand books for vegetable packs promoting both book recycling and obtaining dinner ingredients.Cubic meters per RMB

Water Consumption Intensity 0.104

10000 of revenue The DIY upcycling activity and painting on old glass cups gave discarded items a new lease on life.

Meanwhile an“Eco Tips”check-in activity helped reinforce daily environmental protection awareness

Recycled Water Volume Cubic meters 700 and fostered a strong culture of reuse and recycling within the organization.(Scope: Quectel Headquarters global offices and Changzhou facility)

“Books for Veggies” Event DIY Upcycling Activity

51 52Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Safeguarding the Ecological Environment Green and Low-Carbon Operations

At Quectel we uphold the philosophy of green development and strictly comply with the Convention on At Quectel we actively promote the green office philosophy. By raising awareness of energy conservation

Biological Diversity China’s Judicial Protection of Biodiversity and other relevant guidelines. We actively and low-carbon initiatives office-based water and electricity conservation measures and efficient resource

leverage our technological strengths to contribute to the protection of biodiversity and ecosystems. utilization we continuously enhance employees’awareness of green office initiatives and low-carbon life.Green Office Action

Measures for Ecological and Biodiversity Protection Institutional Support

Strictly observe ecological redlines and refrain from developing any projects within redline In September 2024 we released the Office Code of Conduct aimed at

zones or ecologically sensitive areas including water sources wetlands and agricultural land. enhancing the quality and experience of the workplace environment.Project Site

Selection and Strictly comply with the Environmental Impact Assessment Law of the People’s Republic of Remote Collaboration and Low-Carbon Commuting

Construction China and all applicable international and local laws on forest resource protection and adhere Equipped with a global video conferencing system we enable seamless to green construction practices to minimize the environmental footprint of our infrastructure

projects. remote collaboration across regions significantly improving efficiency

while reducing the environmental impact of business travel. In June we Electronic Visitor

Upon project completion we initiate ecological restoration efforts focused on surface also introduced bicycle repair tools to encourage green commuting among System Training

topography soil and vegetation. In the event of an environmental pollution incident we

promptly manage and mitigate the impact and restore the environment according to the employees.Environmental Environmental Emergency Response Plan. Promoting Low-Carbon Office Practices

Restoration

Actively promote the greening of our factories by planting native species maintaining Employees’ environmental awareness of green office initiatives is promoted

landscaping regularly increasing vegetation coverage and supporting ecological balance in through signage posters and sustainability-related campaigns.areas where we operate. Advancing Paperless Workflows

Technology- Leverage our technological capabilities our communication modules in wildlife tracking and Various digital systems have been introduced including the vis itor

Empowered geographic research. These solutions enable precise monitoring of endangered species’ management system electronic business cards and workspace reservation Electricity

Biodiversity migration routes and activity ranges support biological data collection in extreme environments platforms. Digital nameplates are also used to welcome important guests Saving Signs

Protection and provide valuable insights for biodiversity conservation efforts. replacing traditional printed versions.Enhancing the Office Environment

Case Wildlife Guardians: Safeguarding Safe Rewilding Hefei Yirui piloted a greenery plant renewal program to increase the variety

We are committed to unlocking the potential of technology to inject strong impetus to wildlife protection. By and quantity of plants in public areas enhancing the office ambiance. We

leveraging our advanced modules including LTE LPWA GSM and GNSS we power a range of devices such as also rolled out a nationwide summer office cleanliness campaign to improve Paper Saving

animal collars infrared cameras and bird trackers. These devices serve as“personal bodyguards”for wild workplace comfort.animals enabling real-time data collection and transmission for species such as the Amur tiger sika deer wild

boar roe deer raccoon dog Chinese rural dog crested honey buzzard and common kestrel. We continuously

support the development of innovative IoT terminal devices to precisely safeguard wildlife and biodiversity

and strengthen the foundation of ecological protection with the power of science and technology.Bicycle Repair Tools Shared Office Supplies Greenery Renewal

53 54Society

Driving R&D Innovation 57

Contributing to Digital Intelligence Development 64

Product and Service Quality 68

Supply Chain Management 77

Data Security and Privacy Protection 85

Safeguarding Employee Rights and Interests 90

Promoting Rural Vitalization 111

Social Contributions 112Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Driving R&D Innovation R&D Strategy

At Quectel “Innovation-Driven Development”is not only our core value but also our key competitive edge. With the

Governance of R&D Innovation mission of “providing comprehensive IoT solutions to customers”we continue to consolidate our cellular module

business while expanding into high-potential large-scale markets. We adopt two strategic R&D approaches: customized

Quectel regards R&D innovation as its cornerstone and continuously improves its R&D management R&D and forward-looking R&D to meet the diverse demands of global customers and unlock the vast potential for

system to foster the development of new technologies products and services. We have formulated the industrial innovation. We embrace new quality productive forces such as artificial intelligence big data analytics and

R&D Innovation System the Project Development and Management Procedures and the Guidelines on edge computing ensuring our leading position in a rapidly evolving market and contributing to a greener smarter and

Key Customers’Project Development and Management. We actively uncover emerging technologies more efficient future for society.expand product applications conduct thematic research projects and steadily increase investment in

scientific research and talent development to further enhance our R&D capabilities and overall market R&D-Related Impact Risk and Opportunity Management

competitiveness. Talent Development in Science and Technology

Quectel has built a strong team of technical professionals with robust R&D capabilities.Training Hours for R&D Personnel

R&D Platforms Development The Company cultivates a new generation of talent through both internal training and

external recruitment. 219500hrs

In terms of recruitment we continuously optimize our hiring model to align with our

strategic planning business needs and product positioning and promptly replenish

9 the required talents to ensure that the team’s science and technology projects are We have subsidiaries carried out in an orderly manner. In terms of talent development we provide specialized Proportion of R&D Staff Trained

certified as the High-Tech technical training customized courses and both online and offline learning platforms.We also select in-house lecturers to build overall capabilities within the R&D team.Our 91.5%

Enterprise R&D team had recruited a large number of high-level tech professionals.Encouraging R&D and Innovation

Innovation is essential for a company to achieve sustaining growth and stay competitive. To encourage innovation wehave issued the Internal Innovation Incentive and Management Policy and established an annual“Innovation BonusPool”. We recognize employees who propose innovative ideas in areas such as technology innovation creations and

patents technology upgrades and workflow improvement through the annual Innovation Award program. To foster a

culture of innovation senior management leads by example actively engaging in innovation initiatives and encouraging

employees to take risks and challenge themselves creating a strong atmosphere for scientific and technological

innovation.In the 2024 Innovation Award program we received 84 innovation project submissions from departments worldwide.Following a rigorous review process 40 outstanding projects in areas such as technology marketing and work

innovation stood out showcasing our employees’innovation strength and injecting fresh momentum into our future

development.Case “Innovation Arena” – Creating a Future Through Innovation

In 2024 we hosted 8 sessions of the “Innovation Arena” themed program collecting over

40 product ideas and business proposals. After preliminary and final reviews 3 projects were

successfully incubated with 1 already translated into a signed product contract. This initiative

continuously transforms creativity into tangible results tapping into employees’ innovative

Our 8 Major R&D Centers

potential.

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Industry-University-Research Collaboration Key R&D Innovations in 2024

We work closely with universities research institutions businesses and other third-party platforms

collaborating deeply with innovation entities. Together with many universities we have jointly developed The SG368Z series based on the Rockchip RK3568 platform is equipped

with an ARM high-performance quad-core Cortex-A55 CPU ARM Mali G52

internship and training bases to cultivate talent that meets market demand. Additionally we collaborate GPU 2GHz clock speed and 1T NPU. It runs deep learning algorithms

extensively with universities in project R&D market expansion and other areas integrating resources from providing applications and algorithms for various scenarios such as face

all parties to achieve complementary advantages. Together we foster industry innovation and upgrades recognition and safety helmet testing. It has been widely used in daily

and make continuous strides in industry-university-research collaboration. life. Additionally it supports 8M ISP HDR 4K@60fps video decoding and

Next-Generation Smart triple-screen independent display making it suitable for complex image

R&D Innovation Achievements Module with Edge Computing processing and data computing across various fields including home

Capabilities automation and digital signage.We regard technological breakthroughs as our cornerstone supported by intelligent production driven

by data and extended through ecological cooperation to systematically advance the development of new

quality productive forces through technological innovation. Our products are widely used in key industries The new NCM8x5 series Wi-Fi 7 and Bluetooth 5.4 two-in-one module

is designed for wireless PC connectivity. It introduces high-frequency

such as electricity petroleum manufacturing automotives logistics and healthcare driving their high- concurrent multi-connection technology to enhance connection stability

end intelligent and green development. This contributes to the convenience and efficiency of people’s enabling high data transmission rates with low latency offering users a

lives and helps create a better life. high-speed highly stable wireless experience.AI PCs-supporting Wi-Fi 7

We actively participate in scientific research projects develop strategies based on practical conditions Module

and steadily advance our research efforts. In 2024 we applied for multiple scientific and technological

development research projects aiming to showcase our technological advantages and contribute with our

The 5G transparent antenna adopts a transparent film material which is

strengths. lightweight flexible highly transparent and environmentally compatible.It is particularly suitable for smart connected vehicles ensuring wireless

In 2024 signal quality and communication performance without affecting vehicle

aesthetics or aerodynamic resistance effectively solving the shortages of

We developed 832 new products. Unlocking“Innovation Password” traditional antennas.in Transparent Antennas”

The high-precis ion GNSS posit ioning module has 1040 tracking

R&D Innovation-Related Indicators and Targets and capture channels capable of receiving multiple full-frequency-band signals from global satellite systems such as GPS and GLONASS

simultaneously maintaining stable positioning in complex environments.Key R&D Innovation Indicators in 2024 It includes built-in interference signal detection and a NIC narrowband

interference-resistant unit effectively suppressing multiple narrow-band

Inicator 2023 2024 High-Precision GNSS Positioning interference and significantly improving signal reception in complexModule Featuring “Full-System electromagnetic environments. It is widely used in areas such as intelligentNumber of R&D Employees 4158 4184 + Full-Frequency-Band” robotics precision agriculture surveying and mapping.Proportion of R&D Employees in Total Workforce 74% 71% We launched the next-generation 5G-A module RG650E and RG650V series

compliant with the 3GPP R17 standard excelling in data transmission

R&D Investment (RMB billion) 1.604 1.669 network capacity and other aspects. These modules easily meet the high-

performance 5G demands of CPE HD live streaming and other FWA or

R&D Investment as a percentage of revenue 11.57% 8.97% eMBB applications accelerating the comprehensive application of 5G. We

also released a multi-platform-based 5G RedCap series module offering a

Next-Generation 5G-A Module good balance among size cost and performance and providing an ideal

solution for smart grids industrial automation and other scenarios.

59 60Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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IPR Protection Key IPR Management Measures

IPR System Development To encourage employees to apply for patents with their inventions and creations in their work

IPR Rewards

The Company has always emphasized the importance of intellectual property rights (IPR) protection and we have established the Patent Reward Measures and provide financial rewards quarterly. In

strictly adheres to relevant laws and regulations such as the Patent Law of the People’s Republic of China 2024 we distributed a total of RMB 553000 as rewards.the Copyright Law of the People’s Republic of China and the Trademark Law of the People’s Republic Patent

of China. We continuously improve our IPR management system and has established systems such as Technology We conduct comprehensive technical analysis of the patents involved with several major

the Patent Application System and the Trademark and Copyright Management Measures. These systems Analysis and patent holders providing strong defense against infringement claims effectively protecting

Infringement our rights and interests and our customers and preventing significant financial losses.facilitate IPR creation management application and protection and ensure high-quality full-process Defense

management. In 2024 our IPR management related to the R&D and sales of wireless communication

modules was certified under the GB/T 29490 IPR Compliance Management System. We were honored with Promoting We participated in 6 working group meetings of the 3rd Generation Partnership Project (3GPP)

the title of“National IPR Advantageous Enterprise”and designated as a key IPR protection enterprise in Patent this year actively engaging in discussions on 5G and future communication technology

Development in patents and contributing important insights for industry patent deployment and technological

Songjiang District providing strong support for our technological innovation. the Industry innovation.IPR Digital We have built a digital IPR management platform enabling full-process management from

Management application acceptance and authorization to termination.Case Patent Writing Training at “Quectel Academy”

We place a high premium on the cultivation of IPR talent. We regularly invite

external lecturers to deliver IPR training sessions including IPR applications

IPR Compliance Management National IPR Advantageous Key IPR Protection Enterprise patent writing and software copyright writing. This enhances the team’s

System Certification Enterprise in Songjiang District ability to generate IPRs and fosters awareness of IPR protection.IPR Management Measures

We place great importance on IPR’s strategic development. Through continuous innovation and rigorous

management we ensure effective IPR creation application and protection.IPR Strategy

We adopt a defensive strategy to prevent infringement risks and implement an offensive strategy

by applying for patents to deter competitors. Meanwhile we focus on marketing technological

project declarations and new product development. We have formulated and implemented a

patent application strategy to maximize IPR value enhance market competitiveness and improve

brand influence.

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In 2024 Contributing to Digital Intelligence Development

we granted 146 patents a 10.6% increase compared to 2023 effectively protecting our core Digital Intelligence Development Governance

technologies. As of the end of the reporting period our IPR performance is as follows:

In the governance of digital intelligence development our departments work closely together under

the coordination of dedicated personnel to drive the full process of digital products from development

Indicator Value implementation to marketing injecting strong momentum into our development in the digital intelligence

era. The R&D team deeply understands customer needs and is responsible for building the core

Valid Patents During the Reporting Period 568 development of digital intelligence products by combining cutting-edge research results with innovative

Inventions Patents Applied to Main Business 199 thinking. The Project Department precisely controls project progress coordinates resources and ensures

that digital solutions are implemented smoothly and systematically. The Intelligent Manufacturing Center

Patents under Application and Acceptance 440 leverages advanced systems to transform R&D results into high-quality products. The Sales Department

Copyrights 303 with its keen insight into market demand implements precise marketing strategies to promote digital

products to target customers.Trademarks 363

Digital Intelligence Development Strategy

Granted Design Patents 7

Granted Patents At Quectel we focus on the long-term integrating digital intelligence development into our strategic

Granted Utility Model Patents 51

in 2024 deployment. Leveraging our comprehensive advantages we actively explore various intelligent application

Granted Invention Patents 88 scenarios. We continuously strengthen our ability to perceive and respond quickly to market needs aiming

to break through the existing framework of comprehensive IoT solutions and move steadily forward in the

wave of the digital intelligence era.Adhering to Technological Ethics Management of Impacts Risks and Opportunities

In the field of artificial intelligence we deeply understand the importance of technological ethics and moral principles Related to Digital Intelligence Development

throughout the stages of project initiation development and application. Intelligent Manufacturing and Management

From a project’s preparation to implementation we organize professionals to assess the potential impact of AI projects

Intelligent manufacturing and management play an irreplaceable role in the development of smart

on society and users striving to align with ethical standards and public values. During the technology development

factories. We achieve refined control of production processes by building a systematic IT-based

phase we uphold the principles of fairness and transparency collect data through multiple channels to reduce

management platform. While continuously improving product quality we significantly enhance our

algorithm bias and use explainable AI technology to ensure that AI projects comply with technological ethics standards

production efficiency and competitiveness.continuously driving innovation and application of AI and IoT technologies. During the technology application phase

we conduct security and reliability testing on AI systems and make timely adjustments and optimizations. Digital Production System

Meanwhile we always prioritize data privacy protection. Throughout the entire process from data collection to usage

The SAB system as the core hub collaborates various processes to ensure smooth information flow.encryption measures are strictly implemented in accordance with the principle of least necessity ensuring user privacy The warehouse management system (WMS) precisely controls the incoming and outgoing materials significantly

and security. improving storage efficiency and reducing operational pressure by 50%.In addition we actively engage in industry communication and cooperation partnering with many enterprises and The quality management system (QMS) rigorously controls product quality during production improving the

institutions to jointly discuss key issues such as technological ethics and AI applications. We contribute to technological product pass rate.The MES production line system monitors production progress in real-time and allocates resources helping

ethics governance and help create a healthy and sustainable R&D environment in the industry.improve worker efficiency by 30%.The use of automatic guided vehicles (AGVs) reduces labor intensity and enhances operational safety.During the reporting period

Smart Factory Security

We had NO violations against technological ethics.The security monitoring and parking management across our factories have been automated ensuring security

and orderly operations.

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Smart Product Design Case “Provecta AI”Industrial Intelligence Brand Drives the Efficient Deployment of AI Technology

At Quectel we are committed to advancing the design of smart products that are adaptable to more

In 2024 we launched the“Provecta AI”industrial intelligence brand focusing on applying cutting-edge

application scenarios. Our products cover a wide range of fields such as smart transportation energy

technologies like artificial intelligence edge computing machine vision and software algorithm platforms

and agriculture. By leveraging cutting-edge technologies such as intelligent algorithms sensors and the

internet we customize intelligent solutions for various industries. Through innovation we actively drive to multiple industrial scenarios such as defect detection AGV robot loading and unloading and automated

industry upgrades deeply empower the development of new quality production forces and fully serves testing lines for finished products. To accelerate the application of AI technology“Provecta AI”introduced

people’s aspirations for a better life. the AI algorithm platform“Jiangxin” the visual deployment tool“Jiangzhun” and tools for“0 code”

development with graphical interaction drag-and-drop operation and visualization configurations all with

algorithm acceleration capabilities. These tools help customers apply and deploy AI significantly lowering the

Achievements in Digital Intelligence Development

barriers to using AI technology.Our industrial intelligent brand“Provecta AI”integrates cutting-

Smart edge technologies into industrial scenarios. A series of products have

Industry been launched to lower the AI usage threshold and promote intelligent

upgrades.The Beidou Navigation Agricultural Machiner y A ssisted Driving

System combining Beidou high-precision positioning satellite-inertial

Smart navigation 4G communication automatic control and IoT platforms

Agriculture enables centimeter-level positioning and covers the full agricultural

process of“plowing planting management and harvesting” which

helps increase agricultural productivity. Case RG255C Modules Support Data Transmission and Energy Efficiency

The launch of the Matter One-Stop Solution includes services such as IoT In 2024 Quectel’s MBB product team partnered with a globally recognized chip platform and developed a new

Smart modules mobile app services Matter certification and production line low-power 5G chipset RG255C optimizing algorithms and hardware design. This helps customers increase data

upgrades. This solution supports interconnectivity among home lighting

Home transmission speeds while significantly reducing energy consumption.appliances and electrical devices based on the Matter protocol offering

a high-quality home living experience. Economic Impact：The product improves energy efficiency helps customers reduce operational costs

enhances market competitiveness and drives a 30% increase in order volume boosting our revenue growth.Our automotive-grade 5G modules smart cabin modules and vehicle

antennas meet the demands of vehicle safety assisted driving and Social Impac：It contributes to the development of smart cities empowering urban infrastructure and

intell igent transportation systems. These products enhance the

Smart improving residents’quality of life.comfort intelligence and entertainment of smart connected vehicles

Transportation improve the driving experience reduce traffic accidents and regulate Environmental Impact：It saves about 20% in annual electricity consumption potentially reducing

driver behavior. So far these products have been used by major global thousands of tons of CO2 emissions.automotive brands.

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Case 5G Empowers Trams for Green Travel Product and Service Quality

Based on Quectel’s RG200U module the tram is equipped with a 5G CPE that fully leverages the advanced Product and Service Quality Governance

technology of 5G LAN private networks. This enables the tram to transmit real-time vehicle data during its

journey interacting with real-time driving data through the 5G+system. The system provides drivers with At Quectel we strictly adhere to the Product Quality Law of the People’s Republic of China and other

information such as speed and distance. In special cases it can also detect and alert drivers to obstacles in relevant local laws and regulations. In accordance with the requirements of the ISO9001 Quality

front of the tram significantly enhancing the assisted driving experience. Management System we continuously improve our quality management organizational structure. We have

established systems such as the Quality Manual the Project Process Quality Management Procedures and

the Quality Abnormality Handling Process and implement quality control and improvement initiatives to

provide high-quality products and services to customers.We have obtained certifications of ISO9001 IATF16949 and other systems maintaining these certifications

consistently. Additionally we closely monitor the quality certification status of our contract manufacturers

and overseas factories ensuring that relevant certifications remain valid.Quality Policy

Customer- Innovation- Quality- Excellence-

Centric Driven Focused Oriented

Digital Intelligence Development-Related Indicators Committed to Empowering Global IoT Development

and Targets

Quality Management Process

At Quectel we continuously enhance the intelligent and digital manufacturing capabilities of our modules

achieving efficient data collection deep integration of edge computing and AI and the creation of a low- Advance Planning

power highly reliable and extensively connected smart terminal ecosystem. This supports industrial and Control Supplier Quality Process Control After-sales Program for Control Control Change Control

intelligence smart cities and vehicle-to-everything among other scenario applications driving the Product Quality

digital upgrade of the entire industry chain. We aim to establish an open and collaborative IoT ecosystem

ultimately achieving the intelligent interconnectivity of everything data empowerment and the

reconstruction of industry value.Quality Director

Quality Manager

Supplier Quality R&D Quality Process Quality System and Document

Management Management Management Control Center

Quality Department Management Structure

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Quality System Development Product and Service Quality-Related Strategy

At Quectel we have always upheld the core value of“Customer-Centric”and have built a comprehensive

First and Second-Level Third-Level Standard Third-Level Product risk control mechanism for product and service safety and quality. With our core value in mind we

System Documents System Documents Operation Manuals

have established a product and service safety quality risk management system to identify control and

97 696 420 evaluate risks throughout the entire product lifecycle. We are committed to creating high-quality products

and services. Moving forward we will continue to deepen our technological expertise comprehensively

improve product quality further strengthen the marketing and technical support teams keep up with

technological trends and market demands and provide more competitive high-quality products and

services to continuously expand market share and better meet customer needs.Impact Risk and Opportunity Management Related to

Product and Service Quality

Ensuring Product and Service Quality

Quectel 's ISO 9001 Quectel's CMMI DEV Quectel's ISO 26262 Through diversified measures in project management supplier management and production

Quality Management V2.0 Maturity Level Automotive management we enhance product quality build customer trust and establish a solid foundation for our

System Certification 3 Certification Functional Safety long-term development. For different customer groups (automotive-grade industrial-grade consumer-

Certification grade) we implement a tiered management approach covering product requirements design processes

production processes quality standards and after-sales service to ensure that specific customer needs are

met with precise service quality.Hefei YiRui’s ISO 17025/CNAS Quectel Changzhou’s IATF 16949 Automotive Ensuring Product Quality

Laboratory Certification Quality Management System Certification

Develop detailed project quality plans clarify quality targets for each phase and provide

clear guidelines for project quality control.Quality Platform Development Project Implement lifecycle tracking across “R&D – Production – Sales – Use” conduct internal

Quality Risk

Advanced Laboratory Equipment evaluations accurately identify deficiencies and rectify them promptly.Management

Fully automated production lines effectively ensure product quality. Organize project reviews to effectively identify risk factors during the project process and

identify control and evaluate product process risks to reduce quality risks. In 2024 we

identified and analyzed 27 process risks for identification and control.Total Laboratory Area Number of Laboratory Testing Devices Global Certifications Employ the Statistical Process Control (SPC) technology during production to monitor and

Production analyze product quality in real-time promptly identifying quality fluctuation factors and

Quality reducing product quality variation.Management Establish a quick response mechanism to address quality issues arising on site and

customer feedback promptly reducing the impact of quality issues.

8000+ square 13000+ 6700+ Strictly evaluate and select suppliers to ensure they have qualified quality control meters capabilities ensuring the quality of raw materials and components from the source. We

Supply Chain have developed the Management Standards on Prohibited Use of Hazardous Substances

Product to reduce the use of toxic and harmful substances and rigorously inspect the raw materials

Quality provided by suppliers requiring compliance with RoHS and other standards to prevent the Our Intelligent Manufacturing Center works with manufacturering partner s to ensure a stable supply chain. flow of substandard toxic and hazardous materials into production.Advanced testing equipment ensures comprehensive testing coverage with strict testing criteria and the Management

stability of customer applications. Establish a supplier quality feedback mechanism to promptly report quality issues to

Global certification coverage accelerates the internationalization of customer products. suppliers encouraging them to optimize production processes and service workflows

thereby improving supply quality.

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Development of a Quality Culture

If prohibited substances are found in the production process immediately

report to the on-site quality team and isolate the materials. The Company regularly organizes employee training activities to enhance employees’a wareness of quality

responsibility and professional skills and make sure that they have a profound understanding of the

The RoHS specialist investigates the cause and scope of the quality control process thus ensuring the efficient execution of all quality-related tasks.non-conformance.The RoHS specialist proposes corrective measures for the non-conformance In 2024

and tracks the improvement.The Quality Department organized 41 quality culture training sessions covering topics such

For issues involving customers and environmental concerns corrective as product mechanisms failure phenomena quality prevention and suggested measures

actions are implemented after obtaining customer consent. empowering quality personnel and improving product pass rates.RoHS Environmental Hazardous Substance Abnormality Handling Process

Protection of Customer Rights and Interests

Case The Failure Analysis Laboratory Prevents Post-Production Risks At Quectel we have always adhered to the principle of

“serving customers better”. We have established systems In 2024

The Failure Analysis Laboratory employs various advanced instruments to conduct comprehensive product such as the Customer Satisfaction Control Procedure and

testing throughout the project lifecycle assessing product conformity. Based on monitoring data and analysis the Customer Issues Management Process for the Technical Domestic and overseas customer

results the laboratory delves into potential risk points and proactively develops and implements targeted support engineers achieved a Support Department and committed to providing customers service satisfaction rate over

preventive measures effectively reducing quality risks after product production and ensuring stable and reliable with timely and high-quality products and services. We

product quality. provide 24/7 uninterrupted service to meet customers’ 99%

Before a project’s mass production：Evaluate factors such as benchmark products new components needs at any time aiming to deliver high-quality and

layered structures reserved process dimensions and reliability capabilities enriching the internal design efficient service experiences to customers.experience library to enhance project design efficiency and reliability.During a project’s mass production：Assist the project team in precisely locating the root causes of

complex abnormalities in the production process such as foreign objects in the PCB layers accurately Customer Technical Support Service System

identifying the scope of anomalies to prevent issues from reaching the customer and collaborating with

the factory to implement preventive measures. Antenna Antenna

Modeling Design

After a project’s mass production：Work with technical support to analyze after-sales issues in the

market summarize internal lessons learned and create training materials for continuous improvement Product Product Design Prototyping Testing Mass Quectel Module

to prevent the recurrence of similar problems. Modeling Production

Customer Technical Support Channels

On-site Phone Customer Self- Remote Email Q&A on BBS

Support Support Service Work Service Response and QQ

Order System

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Comprehensive Service Support to Enhance Customer Satisfaction Responsible Marketing

To effectively ensure strict compliance with our marketing requirements and to practice responsible

In 2024 we conducted large-scale training sessions covering 41 topics with a total of 1907 marketing across the board the Company has established several systems including the Quectel Brand

participants significantly enhancing the technical capabilities of the relevant personnel. Management Standards Quectel Marketing PR Standards Quectel Brand VIS Management Measures and

Empowering Quectel Exhibition Seminar and Offline Brand Activity Management Guidelines to standardize product

Focus on strengthening engineers’E nglish-speaking skills and promoting group learning

Customer

models aimed at providing better support for overseas customers. promotional activities by adhering to the fundamental principles of accuracy objectivity and rigor.Support Furthermore we have established a strict marketing material review mechanism specifying that all

Personnel For new employees a comprehensive training system has been established covering promotional content must be approved by authorized personnel within the Company prior to external

everything from basic process knowledge to advanced technical skill development release ensuring that all promotional materials fully comply with legal and regulatory requirements.standardizing their ability to interact with customers.Optimizing

Customers’ The online digital tracking system has been implemented for overseas and domestic

customers respectively to monitor and track their issues.Issue Tracking Provide network access capabilities for a vast number of global terminal

customers ensuring connectivity for industries across the globe.Through the“Customer Support”system we regularly send the latest firmware and

Expanding documentation to customers providing timely technical support and resources.Support A technical BBS has been set up and a Chatbot was added to our official website Adherence to the

Channels broadening our communication channels with customers and enabling quick responses internationalization Our business coverage spans

to customer inquiries. strategy over 150 countries and regions.We insist on conducting customer satisfaction surveys both domestically and internationally regularly

collecting and analyzing customer satisfaction results. The surveys cover 14 perspectives including

quality service and product and gather customer feedback from various aspects. In 2024 both domestic

and international customer satisfaction improved compared to 2023 meeting our customer satisfaction

targets.Customer Satisfaction Control Process

Customer Satisfaction

Customer Feedback Customer Satisfaction Customer Satisfaction Survey Report Survey Evaluation and Continuous Our sales channels cover China Europe North America Asia Africa & Latin America and other regions across the globe.Improvement Our strong brand presence and sales channel advantages drive the rapid development of new business.We maintain close collaboration with global mainstream operators and other industry chain partners.Case Customers’T hank You Letters

To effectively assist our employees and relevant personnel in mastering product knowledge improving

In 2024 our Customer Technical Support product accessibility and laying a strong foundation for product promotion application and business

Department received letters of appreciation expansion.from 15 customers across different countries

recognizing the Quectel team's effort.In 2024

We organized 16 product knowledge training sessions covering more than 1200

Customer’s Thank You Letter participants.

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Product Knowledge Popularization Product and Service Quality-Related Indicators

Offline Knowledge Lectures: Senior product managers and technical experts deliver

comprehensive lectures covering product features application scenarios and competitive Indicator Target Progress in 2024

Domestic advantages.and Overseas Product Pass Rate Achieve established Product pass rate was 99.86% target achieved

Employees Offline Learning Platform: The platform features a rich collection of product knowledge target

resources including video tutorials documentation and online tests enabling employees

to learn product knowledge flexibly and autonomously. To ensure that our

products comply

Domestic We conducted 34 customized product technical training sessions for domestic and with international In 2024 we successfully completed 900

and Overseas international distributors through onsite training online meetings and video tutorials market requirements regulatory certifications including domestic

Distributors and for our distributors and customers. This helps them understand the methods for product we have obtained certifications such as China CCC NAL and SRRC

Customers operation and maintenance further improving the product usage experience. Product Compliance both domestic and as well as international certifications like EU

Certification international market CE U.S. FCC Canada IC Japan JATE TELEC

Customer Complaints and Handling access certifications South Korea KC and Brazil ANATEL. Of these

We have established a comprehensive complaint handling process for customer feedback and complaints. based on the market approximately 205 certifications were domestic

Through layered handling process involving by the technical support team quality technicians and R&D and customer needs and 695 were international.and design personnel we ensure prompt a quick response to customer feedback and effective mitigation for different product

of potential adverse impacts. models.Customer Complaint Handling Process Major Safety and

Quality Incidents

Related to Products None AchievedCollection

and Analysis Upon receiving a customer complaint the customer-facing department immediately and Services

of Customer collects detailed information regarding the non-conformance.Complaint

Information In-depth analysis is conducted to identify the root cause of the non- conformance. Marketing

Compliance None Achieved

Violations

Responsibility If the responsibility lies with the company a situation report will be provided to

Identification the customer according to our requirements outlining the issue's occurrence root Customer Overseas: 93%

and Feedback causes and proposed preliminary solutions. Satisfaction Rate Over 90% Domestic: 91%

The customer complaint will be acknowledged to within 24 hours with the initial

Complaint 8D report completed within 5 working days. A comprehensive 8D report—including

Response

Handling permanent corrective actions and recurrence prevention measures—will be

delivered to the customer within one month.After the corrective actions are implemented the effectiveness is monitored over

Execution and the next three production batches or a period of 3 months.Monitoring

If no recurrence is observed the issue is considered closed.Customer Complaint Customer Complaint Average Customer Average Customer Complaint

Resolution Rate Response Rate Complaint Response Time Resolution Time

91.6% 100% 8Hours 40Hours

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Supply Chain Management At Quectel we place great emphasis on supply chain responsibility management. Especially during the supplier admission process we incorporate ESG performance into evaluation criteria. To ensure the

standardized and sustainable supply chain management we have developed systematic documents such

Supply Chain Management-Related Governance as the Supplier Development and Management Standards and the Supplier Management Manual which

regulate the daily supplier admission and termination management mechanisms.We have formulated and implemented procurement management systems such as the Procurement

We have formulated a series of agreements including the Supplier CSR Agreement and the Supplier

Control Procedure the Production Material Procurement Tender Management Regulations the

Environmental Protection Agreement to constrain and regulate supplier behaviors from multiple

Procurement Department Operating Standards and the Resource Procurement Anti-Corruption Standards

perspectives including social responsibility environmental protection and business ethics providing

to better standardize procurement activities.These measures ensure that procurement is efficient strong assurance for sustainable supply chain management.transparent and fully compliant.We have also established the Green Procurement Environmental

Protection Team to strengthen management responsibilities fully identify supply chain procurement ESG Requirements for Suppliers

risks eliminate the use of hazardous substances closely monitor changes in regulations and policies and Suppliers must comply with all environmental laws and regulations

promote the compliance and sustainable development of both the Company and its supply chain partners. Environmental including chemical management waste disposal wastewater and waste

Environmental

Protection gas control and meet our additional environmental requirements by

Green Procurement Environmental Protection Team providing proof of non-hazardous material products.Forced Labor The employment of any type of forced or involuntary labor is prohibited.Team Head Appointed by Senior Vice President The employment of child labor is prohibited. Apprenticeship programs

Prohibition of

are supported provided they comply with all applicable laws and

Child Labor

regulations for such programs.Sales Department Quality Department Technical Remuneration and Suppliers must comply with all applicable salary and working hour laws

Department Resources/ Production/Purchasing Engineering Benefits and provide legally required benefits.(Hardware/

Software) Department Department Suppliers must adhere to local statutory working hours and compensate

for overtime. Weekly working hours (including overtime) must not

Procurement Management System Working Hours exceed 60 hours (in exceptional cases employee consent is required;*

Social lower standards apply in regions with lower working hour limits) and

The team is led by an appointee of the Senior Vice President who serves as the sole authorized employees must be guaranteed at least one day of rest per week.Management signatory for external environmental-protection agreements. This leader organizes and coordinates the Discrimination based on race religion gender or any other factor is

green procurement process to ensure smooth operation eliminate environmental risks in our products Non- prohibited in recruitment. Fair treatment of all employees must be

and guarantee customer satisfaction. Discrimination and ensured. Employee rights shall be respected and any form of corporal

Sales Department: Learn about eco-friendly materials identify customer environmental requirements Respect punishment threats of violence or harassment is strictly forbidden in

and provide internal feedback collaborate with the Quality Department to provide necessary order to maintain a safe and respectful working environment.environmental protection data.Quality Department: Update the hazardous substance management methods in a timely manner Suppliers must establish health and safety standards for occupational

work with R&D sales and resource departments to evaluate and record customer environmental Health and Safety health safety and implement corresponding management systems.requirements review and manage the environmental qualifications of suppliers’ materials and assess

the environmental status of our projects. Suppliers must strictly comply with all laws and regulations related to

Technical Department (Hardware/Software): Lead new-product development and ensuring that Business Ethics bribery corruption and prohibited business practices.Execution product development complies with customer regulatory requirements.Resource/Procurement Department: Source suppliers that meet environmental protection Corporate Suppliers must comply with our code of conduct provide relevant

requirements and collect testing reports for materials such as ROHS and halogen-free reports. Conduct Governance Corporate documents and grant access as required and respond promptly

environmental protection investigations on existing suppliers and create a list of qualified green Oversight Records to our reasonable inquiries from our representatives regarding its

suppliers. implementation.Production/Engineering Department: * Monitor incoming materials for environmental compliance

review reports and packaging proofs;* if necessary request third-party testing reports such as ROHS

REACH and halogen-free reports when necessary. * Inspect eco-friendly materials immediately isolate

the material and stop the relevant production line if there is no eco-label and promptly report to the

superior. * Monitor whether the shipments are eco-friendly ensuring that the shipment labels and

packaging meet ROHS certification. * Verify that production auxiliary materials and recycled materials

are environmentally friendly.

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Supply Chain Management-Related Strategy Supplier Audits

At Quectel we continuously deepen close collaboration with our suppliers and upstream and downstream At Quectel we continuously strengthen supplier audit management and optimize supplier resource

partners in the value chain establishing a more robust and efficient collaborative mechanism. From raw allocation. We have established the Annual Supplier Audit Plan and coordinate multiple departments to

material procurement to finished product delivery we exercise comprehensive control over the production conduct on-site supplier evaluations performance assessments and other tasks. Supplier information is

process to ensure product supply stability and lay a solid foundation for steady business expansion. In the recorded in real-time on our supplier management platform to ensure transparency and traceability.development of the industrial ecosystem we are enhancing cooperation with operators and core suppliers Supplier Audit Measures

and integrate resources from various parties to jointly conduct technological innovation and application

exploration and promote a more competitive and innovative industry ecosystem. We conduct comprehensive supplier evaluations through the Supplier Evaluation Form

which covers various dimensions including quality systems R&D capabilities quality

Supply Chain-Related Impact Risk and Opportunity control process management warehousing and transportation after-sales service

Management safety management environmental protection and human rights. Suppliers involved in Comprehensive major negative events or those ranked at the lowest levels in evaluations are subject to

Supplier Risk Control Mechanism Evaluation termination of partnerships.At Quectel we continuously enhance our supply chain risk management mechanism to ensure its safety In 2024 we conducted performance evaluations for 164 production suppliers all of whom

met the qualification standards.and stability of our supply chain. We actively strengthen risk identification evaluation and monitoring

systems and improve our supply chain backup strategy. We require suppliers to sign the Long-Term Supply For issues such as defective materials and quality non-conformance we assist suppliers in

Assurance Agreement and the Long-Term Cooperation Agreement to reinforce partnerships and enhance traceability root cause analysis and corrective action.Suppliers are required to submit a

correction report and improvement measures within the specified time frame to effectively

the resilience and reliability of the supply chain. Guidance on Quality enhance the maturity of the supply chain’s social responsibility system.Improvement In 2024 we provided correction feedback to 10 production suppliers and all identified

Risky Supplier For high-risk suppliers requiring urgent introduction a strict evaluation and special approval

Admission issues were rectified.process is enforced. The Supplier Concession Introduction Application must be submitted

Control through the BPM system and may only proceed after approval by multiple departments. Responsible Procurement

Every quarter the supplier list undergoes comprehensive review and risk assessment to identify At Quectel we adhere to a win-win philosophy based on mutual interdependence ensuring product Regular Review

and Dynamic potential risks and update risk levels ensuring the compliance and security of the supplier quality and actively fulfilling social responsibility through an optimized procurement process and strict

Monitoring pool. governance of supplier collaboration. We aim to deliver core value to the industry chain establish a fair

and open cooperation platform and work closely with industry partners to drive industry development

Risk Warning A real-time monitoring mechanism is established. Once a risk event is triggered an alert is achieving mutual benefits and sustainable growth.and Emergency immediately initiated. Relevant departments collaborate to formulate solutions within 24 hours

Response to minimize business impact. Responsible Procurement Measures

Full-Process Through the procurement system platform we implement refined end-to-end management Risk Constraints High-risk suppliers are required to sign legally binding supply assurance agreements and

and Responsibility Management for required production raw materials.provide performance guarantees with clear breach clauses to enhance accountability.Enforcement Strengthening We have thoroughly reviewed issues in the procurement process implemented targeted

Standardized

and Efficient improvement measures and clarified departmental responsibilities to further standardize

Optimization of our procurement operations.We prioritize a multi-source supply mechanism to avoid reliance on a single supplier. Alternative Procurement

Supply Assurance

Strategy resources must be available for key materials to enhance the resilience of the supply chain. Transparent To ensure transparency in the procurement process we require all suppliers to sign and

Procurement strictly comply with the Supplier Integrity and Honesty Commitment firmly prohibiting any

Risk Isolation and Suppliers identified as high-risk are not allowed to be introduced into overseas projects to Management form of commercial bribery improper benefit transfer or other unethical behavior.Regional Control prevent spread of compliance risks to international business operations.We emphasize empowering procurement personnel by organizing quarterly and monthly

Encouraging training sessions featuring internal and external experts. The training covers topics such as Suppliers are required to establish internal risk assessment and issue escalation mechanisms Empowering

Suppliers to procurement data analysis raw material and product introductions negotiation skills and covering areas such as safety compliance financial risks product safety process stability and Procurement

Conduct Self-Risk Skills customs clearance operations effectively improving their professional capabilities.supply risks. They must also develop emergency response and escalation procedures to ensure

Assessments In 2024 we organized 45 procurement-related training courses with 100% of procurement early detection timely alerts and prompt resolution of risks. personnel participated in sustainable procurement training.

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Avoiding the Use of Conflict Minerals Supply Chain Management-Related Indicators and Targets

At Quectel we continuously improve our conflict minerals management system and processes to ensure

that the raw materials we use comply with the Conflict-Free Sourcing Initiative (CFSI) standards. We have

established the Conflict Mineral Declaration with a clear commitment not to directly or indirectly procure Quectel’s Supplier Target Management in 2024

any materials containing“conflict minerals”to avoid funding or providing benefits to armed groups in

the Democratic Republic of the Congo or its neighboring countries. Number of Suppliers that Have

To further enhance supply chain transparency our suppliers are strictly prohibited from using conflict Total Number of Suppliers Undergone Annual Evaluations

minerals as raw materials. We also ensure that all direct suppliers comply with environmental laws and

regulations including but not limited to RoHS 2.0 directive the REACH Regulation the Battery Directive 409 164

the Packaging Directive and the POPs Regulation. Additionally we sign the Supplier REACH Compliance

Declaration with direct suppliers to increase the transparency of supplied products and are committed Supplier CSR Agreement Supplier Environmental Protection Proportion of Suppliers Signing the Sustainable

to avoiding the use of hazardous substances in the production process driving the development of a Signing Rate Agreement Signing Rate Procurement Charter/Supplier Code of Conduct

sustainable supply chain. 100% 100% 88.75%

Promoting Industry Progress

At Quectel we fully leverage our strengths to actively

participate in the industrial chain development contribute Industry Affiliations

to industry development and build a positive industry

ecosystem. We are committed to establishing sound Member of the Global Coalition on Telecommunications

cooperative relationships with customers suppliers 3GPP (3rd Generation Partnership Project)

and other partners engaging in exchanges with peers Member of the China Communications Standards Association (CCSA)

Quectel’s Declaration Quectel’s RoHS Declaration and promoting mutual benefits technological exchange

of Conflict Minerals of Conformity Member of the Groupe Speciale

and joint responses to the market. This ultimately aims Mobile Association (GSMA)

Ensuring Supply Chain Security to promote the sustainable development of the entire

To optimize supply chain business operations and enhance supply chain stability we industry.have obtained the Authorized Economic Operator (AEO) certificate. The AEO system

advocated by the World Customs Organization is crucial for promoting global supply Case In-depth Participation in 3GPP Standard Setting to Advance 5G-A Technology

chain security and trade facilitation. The AEO certificate has significantly optimized

our trade facilitation and market competitiveness. From February to November 2024 we actively participated in the 3GPP working group meetings attended by

representatives from multiple countries worldwide engaging in in-depth technical discussions and solution

Priority Clearance for Improved Efficiency：We enjoy priority clearance privileges development for global communication standards. Leveraging our technical advantages we successfully promoted

allowing our goods to quickly enter the market significantly shortening waiting our technological solutions to be adopted in the 5G-A standards making it a vital component of the global 5G cellular

times for goods and accelerating trade flow. communication standards. This achievement has been widely applied in various vertical industries such as new

Reduced Inspection for Lower Costs：The reduced inspection rate effectively energy vehicles smart agriculture smart factories smart healthcare and smart homes providing strong support

minimizes the risk of cargo delays lowering logistics costs and improving trade for the industry’s digital transformation and technological advancement. It further solidifies our leadership in global

efficiency. communications technology and contributes significantly to the industry’s development.Stabilizing the Supply Chain for Development：The enhanced brand influence helps As of the end of the reporting period we had submitted nearly 56 technical proposals for 5G communication standards

us stand out in international market competition further ensuring the stability and Authorized Economic to the 3GPP organization.reliability of the supply chain. Operator (AEO) Certificate

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Case Years of Participation in the Partner Conferences Hosted by China Mobile Case Quectel Supports Various Sectors by Participating in Multiple Exhibitions

China Unicom and China Telecom

From October to December 2024 the Partner Conferences hosted by China Mobile China Unicom and the Digital Technology China International Gas Heating Technology and

Ecosystem Conference hosted by China Telecom took place in succession. We participated in these events with our nine major Equipment Exhibition

product lines and over 100 products and terminals showcasing excellent products and customer terminals in fields such We showcased diverse Matter products and solutions to

as 5G RedCap edge computing intelligent cockpits and satellite communications. We collaborated with various parties to

empower the smart home industry driving intelligent upgrades

explore the possibilities in the“AI+ era”.and fostering ecosystem collaboration.

2024 Hong Kong International Lighting Fair

We displayed modules and smart lighting solutions supporting

the Matter protocol and Amazon ACK SDK advancing smart

home interoperability.Electrical Instruments and Meters Exhibition

Case 2024 MWC (Mobile World Congress) – Quectel Lights Up the Overseas Digital Blue Ocean We launched modules and RedCap technology solutions for

the power industry accelerating the application and sharing of

As one of the leaders in the global IoT industry we participated in multiple exhibition areas at the 2024 Mobile World Congress cutting-edge technologies in the energy sector.(MWC) held in Barcelona Las Vegas and other locations. Our high-performance smart module products and related solutions

have widespread applications in industrial intelligence including Wi-Fi 7 and Bluetooth 5.4 combo modules. In collaboration

with Qualcomm we also released the industry’s first asset tracker that supports both “NTN satellite communication” and

“multi-mode cellular communication” functionalities making significant contributions to the technological advancement Equal Treatment to SMEs

and digital transformation of the global communications industry. This further reinforces our technological leadership In our industry chain collaboration we uphold the principle of integrity and treat all small and medium-

position in the international market. sized enterprise (SME) partners equally. We have built a rigorous procurement order execution mechanism

strictly adhering to the delivery acceptance standards and timelines specified in cooperation agreements.By leveraging standardized process management we ensure timely receipt of goods and clear settlement

of payments strictly avoiding any unreasonable delays or withholding of payments. We actively alleviate

financial pressure for SMEs providing stable business continuity support helping SMEs advance steadily

and jointly creating a trustworthy orderly and win-win business environment.During the reporting period

We had NO overdue payments to SMEs.

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Data Security and Privacy Protection

Secure and Daily Operations

Continuous

Governance Related to Data Security and Privacy Protection Operations Continuous Improvement Equipment Security

System

Protection Application Security

Data Security System Development

Data Security

We are committed to complying with the Cybersecurity Law of the People’s Republic of China the Data Technical Framework Virtual Resource Pool

Security Law of the People’s Republic of China the Personal Information Protection Law of the People’s for Information Security Cloud Environment

Security

Republic of China and other information security and privacy regulations. We continuously improve Governance Virtual Host Security

our information security management mechanisms and have developed various information security

Border Security Network Border

management policies emergency response policies and operational process manuals to ensure the stable

Security

operation of our information systems effectively guard against all types of information security risks and Communication Communication Governance Security Networks

establish a robust security defense for steady business development. Technology

R&D Security

We have received the ISO/IEC 27001 Information Security Management System Certification (for fields

such as communication module technology R&D and IoT cloud platform technology R&D and operational Industrial Control Security

services) ISO 27701 Privacy Information Management System Certification ISO 21434 Road Vehicles Unified Security

Cybersecurity Management Certification and the TISAX Level 2 label for automotive industry information Authentication

security assessments. Physical Security Environment

The IT Department has established an information security team that regularly conducts information

security audits promptly rectifies any identified issues and continuously enhances the information Technical Framework for Information Security Governance

security management system in response to technological developments and changes in business needs.Data Security Management Policies and Regulations

Network Management Regulations System Emergency Recovery Plan

AD Account Management System Information Security and Privacy Information Management Manual

Server Management System Standards Personal Information Security Specifications

Information Security Penalty Management System Information Security and Privacy Information Policy

IT Device Management System Privacy Information Applicability Statement

Backup Management System Data Breach Emergency Response and Notification Process

Terminal Security Usage Management System

TISAX Level 2 Label for

Automotive Industr y

ISO SAE21434 Certification Information Security

Assessments

ISO27701 Certification

ISO27001 Certification

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Data Security and Privacy Protection-Related Strategy Information Security Training Performance in 2024

Data is our core asset. We actively improve our security strategy continuously raise security awareness Total number of information security training sessions: 6

Information security and business secret training exam pass

enhance privacy protection respect personal privacy assume social responsibility and continuously

rate for new employees: 100%

refine our system to ensure the provision of secure efficient and sustainable products and services to our

Total participants in information security exam: 4000;* and

customers. the pass rate: 100%

Impact Risk and Opportunity Management Related to

Data Security and Privacy Protection Data Security Governance Results

Daily Data Security Management Coverage of Business Areas with Data

Security Certifications Sensitive Data Encryption Coverage

We implement a comprehensive information security strategy accurately identify risks regularly conduct

data backup drills strengthen network control employ professional tools to detect and fix vulnerabilities 90% 100%

and enhance employee training to jointly build a robust information security defense.During the reporting period we had not faced any penalties from relevant authorities due to

Data Security Management Measures violations of information security and privacy protection laws and regulations.Cross-department Transmission: Adopt various data transmission methods such as shared

drives cloud storage FTP AISHU SharePoint and OneDrive to meet the needs of different Protection of Customer Privacy

departments and business scenarios and back up data to address various information security At Quectel we strictly adhere to data protection laws and regulations such

Data incidents..In 2024

as the EU General Data Protection Regulation (GDPR) and other domestic

Transmission Overseas Cross-Border Transmission: Conduct PI assessment for data transfers involving foreign and international privacy protection laws. Through the implementation

colleagues and strictly restrict cross-border data flow. of both technical and management measures we continuously improve No customer privacy

Confidential Transmission: Establish the Data Transmission Operational Guideline to safeguard our customer privacy complaint handling mechanism ensuring that when breach incidents occurred.sensitive data during network transmission preventing data leakage and or tampering.customer privacy rights and interests are violated customers can receive

Data Leakage Led by the IT department we conduct key data backup and recovery drills in accordance with timely and effective solutions. Additionally privacy protection measures

and Backup emergency response plans for data leaks and strictly adhere to the backup management system are fully integrated into the service lifecycle providing global customers

Emergency Drills ensuring regular backups and drills to maintain data security and recoverability. with secure reliable and trustworthy service experiences.Domestic and overseas data is categorized with whitelists and blacklists established for

Classification Customer Privacy Protection Measures

classification management. Every two months open-source POC scanning tools are used to

and Vulnerability

detect risk exposure and vulnerabilities. The scan results are sent to business departments for

Management

rectification.Confidentiality Agreements Decentralized Customer DIPAs

Employee Update and revise the Quectel Employee Privacy Statement to strengthen the protection of Information Management

Privacy employee privacy and ensure the security of employees’ personal information.We sign confidentiality agreements We implement decentralized We conduct Data Protection

Comprehensive Advance full-scope project management implement proactive attack detection comprehensive with individuals companies and management of customer Impact Assessments (DIPAs)

Data log management and data-level analysis to enhance information security protection customers clearly defining the information ensuring that only to systematically identify and

Management capabilities. confidentiality obligations of authorized personnel have access evaluate the impact of data

both parties regarding sensitive to and can process customer data processing activities on customer

Organize data compliance and information security training sessions seminars and other

Information information through legal effectively preventing unauthorized privacy. Based on the assessment

activities that cover topics such as the popularization of information security policies and documents. access and leakage. results appropriate measures

Security

regulations office and daily security norms security rule summaries and interactions are implemented to prevent any

Awareness

discussions. These activities aim to raise employees’ awareness and response capabilities compromise of customer privacy.Training

regarding information security.

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Data Security and Privacy Protection-Related Indicators Safeguarding Employee Rights

and Targets and Interests

Employee Employment

Data Security Management Targets and ProgressWe adhere to the principle of“merit-based selection public recruitment internal promotion first andProgress in 2024 hiring the most qualified candidates” and have established a series of employee recruitment policies to

Indicator Target standardize the recruitment process. At the same time we strictly follow the Interviewer’s Handbook to

Q1 Q2 Q3 Q4

shape the professional image of interviewers and conduct recruitment according to the Employer Branding

Information Security Incidents 0 0 0 0 0 Action Plan ensuring a fair and just recruitment process.Data Leaks 0 0 0 0 0 Compliant Employment

Long Business Interruptions We implement a compliant and transparent recruitment policy adhering to a science-based process

00000

(30+ minutes) management approach throughout the recruitment and employment process. We have established

internal management systems such as the Recruitment Management Measures the International Talent

New Vulnerability Fix Rate 100% 98% 97% 98% 96%

Recommendation Guidelines the International Recruitment Management Regulations and the Employee

Information Security Handbook to standardize the recruitment procedure. We require that all employees meet the legal

100%1311

Training (Times) employment age requirements preventing child labor from the source. Additionally we prohibit any

form of forced labor and all employees’work is voluntary with the right to terminate the employment

relationship in accordance with the law.Labor Contract Signing Rate Social Insurance Coverage Rate

100%100%

During the reporting period we had no incidents of child labor or forced labor.Diversity Equality and Inclusion

We actively implement a diversified employment philosophy considering diversity equality and inclusion

(DEI) as core value as our business operations. We have established policies such as the Anti-Discrimination

Policy and the Workplace Bullying Prevention Procedure explicitly prohibiting discrimination insults or

offensive behavior based on race color age gender sexual orientation ethnicity disability pregnancy

religion political affiliation and marital status. Employees are encouraged to file complaints regarding

discrimination or bullying in writing or orally. We will handle and publicly announce the issues in

accordance with the Employee Complaint Control Procedure.

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Employee Composition Talent Acquisition

We leverage multiple channels for talent acquisition including online

Disabled Employees Ethnic Minority Employees Overseas Employees recruitment headhunting internal referrals social recruitment campus

0.58% 4.86% 478 recruitment university-enterprise collaboration and overseas recruitment. Total Employees These efforts cover various positions in software hardware testing

technical support functions operations sales and other areas ensuring

5890 Proportion of Female solid talent support for our stable development.

Female Managers Managers We adhere to a strategy of prioritizing local talent recruitment. Through

143 21.03% regional functional departments both domestically and internationally

we organize recruitment activities locally providing diverse career

development opportunities for local residents. During the reporting periodwe were awarded the “Top 100 Private Enterprises for Job Creation in Top 100 Private Enterprises for

10 Anhui Province” highlighting our contribution to employment.

Job Creation in Anhui Province

83

613

4205

1685 2390 Deepening University-Enterprise Cooperation to Empower Local College

Case

Graduate Employment

By Gender By Age2794 In 2024 we actively participated in university-industry cooperation collaborating with institutions such as

Guilin University of Electronic Technology Guilin University of Aerospace Technology and Guangxi Normal

University. We engaged in activities such as company visits university visits campus job fairs and promotional

Employees Aged 30 Years and Below events to assist university students with internships and job placements effectively alleviating local Male Employees

Employees Aged 31 to 40 Years employment pressure and promoting stable employment.Female Employees

Employees Aged 41 to 50 Years

Employees Aged 51 to 60 Years

Employees Aged 60 Years and Above

165

53627135

14447054184

3910

530

By Education By Position

Level

2024 Campus Recruitment Fair

In 2024

Master’s Degree and Above Technical Management New Employees Employee Turnover Rate

Bachelor’s Degree Production Administrative

Associate’s Degree and Below Sales Finance 271 13.59%

9192

D i v e r s i t y

E m p l o y m e n t R a t i oQuectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Labor Dispute Resolution Remuneration and Benefits

We are committed to building a legal compliant harmonious and stable labor relationship reducing the Remuneration System

likelihood of labor disputes by strengthening labor management and creating a stable and harmonious In accordance with national laws and regulations we have formulatd internal policies such as the

workplace environment. International Performance Management Policy and established a comprehensive compensation system

that includes employee salary structures performance appraisal systems and welfare programs. We take

Strengthening Labor Management Measures employee capabilities and performance appraisals as the primary basis for adjusting fixed income and

performance-based bonuses ensuring competitive remuneration in the market.Continuous

Ensure that all labor contracts comply with the latest labor laws clearly defining the rights

Update of Labor

and obligations of both parties to reduce disputes arising from unclear contract terms.Contract Terms We evaluate and award employee bonuses based on both business

Individual performance and individual performance (such as teamwork work efficiency

Performance-

Enhanced Legal Conduct strict legal compliance reviews at all stages including onboarding employment Based Bonus etc.) motivating employees to focus on their personal and departmental

Compliance and termination to ensure that all actions adhere to legal and regulatory requirements and performance.Review to avoid potential legal risks.Management’s We conduct performance appraisals for the relevant supervisor every six

Organize training sessions on labor laws and regulations for employees and management Performance months. Clear organizational and personal targets are set prior to the

to enhance their understanding of labor rights and interests protection strengthening legal Appraisal appraisal. The results combined with the performance of the year are used

compliance awareness and foster a harmonious workplace environment. to adjust salaries and bonuses based on a performance-based approach.Welfare Benefits

We value employee rights interests and welfare benefits as In 2024

well as work-life balance. In addition to providing statutory

benefits in accordance with relevant laws we offer additional We provided supplementary commercial

Labor Law and subsidies and welfare programs based on internal policies insurance of RMB million

Regulations 7.83

such as the Corporate Welfare Management System the Team

Training Employee health check coverage reached

Building Management Regulations the Quectel Attendance 89% with a total investment of RMB

and Leave Management System and the Rest and Leave

Management Measures. These policies regulate work hours 1.708 million

attendance management and enhance employee well-being Average paid annual leave per employee:

and sense of belonging improving their quality of life and 7.02 days

work experience.Paid leave pension insurance medical

Statutory Wedding benefits illness consolation insurance work injury insurance payments and newborn benefits for Gifts and

Benefits maternity insurance unemployment female employees Consolation

insurance and housing provident fund

Communication allowance Paternity leave maternity check-

Daily

In 2024 transportation allowance meal

up leave child-rearing leave Leave

Allowances allowance and overseas business trip Quectel’s breastfeeding leave and leave for Benefits

allowance Welfare only-child care

We had 3 labor dispute cases all of which were resolved through mediation or in Programs

accordance with legal procedures. Health check-ups supplementary

Medical commercial insurance and exclusive Birthday benefits holiday benefits Other

Benefits dental cleaning and vision care team-building activities etc. Benefits

activities

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Case Tooth & Vision Care Hub: Energizing Smiles Safeguarding Sight

In June 2024 we held a health campaign in collaboration with subsidiaries in Hefei Guilin and other locations

offering dental and eye care activities. We secured exclusive discounted prices at dental clinics providing

consumption benefits to employees. The activity combined health and fun highlighting our commitment to

employee well-being and helping employees engage in work with a better state of health.Rational Suggestions Result Release

Tea Reception for New Hires

Corporate Culture Integration into Departments Direct Access to CEO

Democratic Management and Communication Sharing Workplace Confusion Between New and Senior EmployeesAt Quectel we are committed to creating an open and communicative work environment advocating To encourage communication and feedback we organized a“Workplace Confusion Sharing fromfor open-door management and emphasizing the importance of listening to employee voices. We 0-14 Years of Service”activity. We invited new employees core staff and senior employees to share

continuously improve our employee grievance mechanism where suggestions are collected and their challenges and difficulties encountered in the workplace. Through this sharing session senior

communicated by dedicated personnel and regular reviews of the suggestions are conducted with employees helped new hires quickly understand corporate processes culture and industry knowledge

results made public. Relevant departments respond to employee feedback or suggestions promptly and and also gained new insights from the new hires’e xperiences broadening their perspectives and

provide feedback on the actions taken to the employees involved. In 2024 the Administration Department fostering an open and inclusive communication atmosphere.responded to 40 employee inquiries on the online EIP platform.Feedback to

direct supervisors

Feedback to HR

performance assessors

Collection of Feedback to seniorrational suggestions management (online):“ SeniorExecutives Listen to You” and

Feedback to senior “Direct Access to CEO”

Democratic management (offline):communication Feedback via email/“Face-to-Face with Seniormeetings employee mailboxExecutives”

Corporate culture integration

into departments Employee Communication

and Feedback Channels

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“Face-to-Face with Senior Executives” Event Employee Satisfaction Surveys

In 2024 we held two“Face-to-Face with Senior Executives”sessions to build a direct communication We actively conduct employee satisfaction surveys covering employees across all departments and

bridge between executives and employees. During the events senior management shared in- levels. Functional departments implement targeted improvements based on the survey results.depth insights on topics such as corporate strategic planning and business development directions To evaluate the onboarding experience of new hires we conducted a new employee satisfaction

presenting the long-term strategic blueprint and short-term operational strategies to employees. This survey evaluating feedback on onboarding processes orientation training and welcome packages

helped employees better understand the Company’s overall development goals and identify how ensuring a smooth effective and coherent onboarding process.their individual work aligns with the corporate strategy. In 2024 we conducted employee satisfaction surveys across various areas including administrative

work employee training financial work and new employee onboarding receiving 2636 survey

responses. The satisfaction results for various areas were as follows:

New employees’ onboarding Satisfaction rate Satisfaction rate on

satisfaction rate on IT work financial work

98.4%94%97.5%

Satisfaction rate on Satisfaction rate on Quectel Satisfaction rate on

administrative work Academy training human resources work

91%93.8%93.6%

Employee Care and Assistance

Employee Communication Meetings

Care for Special Groups

In 2024 we held multiple employee communication meetings to encourage employees to actively

participate and focus on optimizing the work environment improving the quality of meals in the At Quectel we pay close attention to the needs of employees In 2024

and their families particularly those in special circumstances

canteen enhancing logistics services improving welfare benefits and discussing our long-term

such as nursing mothers or employees facing hardshipsand

development plans. These meetings collected a wide range of employee opinions and suggestions We supported 81 employees with offer them timely support. We consistently care for the illness with a total support money of

and targeted improvements were implemented to enhance employee work experience and interests of these special groups providing assistance to ill

RMB .satisfaction. 81000employees and distributing support money to resolve practical

difficulties.We place particular emphasis on protecting the rights and In 2024

interests of female employees offering exclusive benefits

providing maternity leave and dedicated breastfeeding

rooms and providing professional counseling services and We assisted 53 female employees

with childbirth-related support with

comprehensive health screenings including gynecological and

breast health check-ups. We fully support their physical and a total of RMB 26500 in exclusive welfare benefits.mental well-being actively fostering an equal harmonious

and female-friendly workplace environment.

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Welfare Benefits for Female Employees Caring for Employee Mental Health

In the increasingly fast-paced workplace employee mental health has become an increasingly important

Breastfeeding Warm and comfortable breastfeeding rooms are provided offering a private hygienic and

Room comfortable space for nursing mothers. concern. Since launch of the“Yixin Program” Quectel has implemented a series of innovative initiatives to

focus on and improve employee mental health effectively alleviating work-related stress and creating a positive

In the annual health check-up program gynecological and breast examinations are added and uplifting work environment.Health Check-ups to help female employees detect common gynecological issues early and address their

specific health needs. Yixin Program Activities in 2024

Regular health lectures for female employees are offered to raise their awareness of health

Health Lectures Stress Relief

issues and promote healthy work and lifestyle habits.In 2024 we hosted the“Yixin Carnival 2.0”in Guilin featuring interactive

activities such as mandala painting and sand play therapy to help

employees release stress.Worry-Free Mailbox

During Thanksgiving we launched the“Worry-Free Mailbox”providing

employees with a secure and private platform to express their concerns.A professional psychological counselor responds to the messages with

quarterly rewards to encourage participation.Breastfeeding Room

Case Goddess Festival Activities

At Quectel we value the“Her Power”in the workplace and hosted a variety of activities for the Goddess Parent-Child Communication

Festival focusing on the workplace experience of female employees. We invited female employees to share their

workplace experiences and bravely break career stereotypes;* prepared customized care packages to address the We hosted activities such as“Communication for Love”and psychological

diverse needs of female employees;* and organized DIY activities to inspire creativity and imagination enhancing support for employees with children preparing for high school and college

female employees’w orkplace experience from multiple perspectives. entrance exams. These sessions shared exam preparation experiences

and psychological adjustment techniques to improve parent-child

relationships for employees.Immediate Counseling

We launched six cloud-based psychological services on various themes

such as emotional stress and interpersonal communication integrating

brainwave technology to help employees better understand their mental

states.DIY Activity Care Package

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Work-Life Balance Nurturing Excellent Talent

We actively build a regular “Warmth Delivery System” to care for employees comprehensively. We regularly

organize various team-building activities to effectively relieve work-related stress. On important holidays and Employee Training

employees’b irthdays blessings and gifts are provided timely. Quarterly team-building activities are planned

At Quectel we adhere to the craftsmanship spirit and value the collaborative development of both us and our

and organized by department heads.employees. We have established a Training System to standardize the training framework and ensure training

quality. In terms of training methods we adopt a combination of practical and theoretical training as well as

a blend of online and offline training models accelerating the conversion of learning outcomes into practical

applications. We offer various training courses including specialized managerial and general courses to meet

the training needs of employees across different roles and levels.Cultural

Activities

Best 5S Activities New Employee Training

New employee training is a key component in helping new hires

Sports Activity integrate into the Company. For both domestic and international

Season new hires we organize 2-4 training programs each month. The

Health Check-up training includes 11 key topics including company introduction

Activities corporate culture corporate policies EHS (Environment Health

and Safety) and more. For fresh graduates we offer a 45-day

“Take-off Training Camp”with a blended online and offline

All-Employee learning model to speed up their transition. Additionally a

Health Season

Six mentoring system is in place to provide one-on-one guidance for

Programmers’ Day new employees helping them adapt to their roles quickly. New Employee Onboarding TrainingMajor

Themed

Activities

Holiday

Activities

Management’s

Sports Day

Family 2024 “Take-off Training Camp”

Outing

Family Autumn Outing

Corporate

Culture

Month

Corporate Culture

Debate Competition

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Skills Enhancement Training General Training

To align with the evolving business needs we continuously provide professional skills training across various

To comprehensively improve employees’overall competencies we offer a variety of general training courses and

areas such as R&D product development and sales covering both domestic and international employees. In line

use a combined online and offline approach to support holistic employee development..with industry trends we have developed specialized courses such as AI Operations Skills Training offering self-

learning platforms and course resources to help employees quickly acquire new skills and enhance their efficiency Offline Grand Lectures: We held 19 sessions focusing on our core business processes and basic skills. These

and competitiveness. lectures improved employees’ professional foundation and work efficiency through lectures and case studies.In 2024 we organized 480 professional training sessions and recorded 1772 internal department sharing Online Grand Lectures: We held 9 sessions covering topics such as career skills mindset development and

sessions. management capabilities providing learning opportunities for employees despite time and space limitations.Academy Lectures: We organized 8 sessions providing a platform for employees to share experience and

exchange ideas.English StarTalk Activity: We organized 22sessions with over 1500 participants. Through interactive

activities movies in their original language and dubbing competitions we created an English-speaking

environment enhancing employees’English skills to better adapt to international markets.Customized Thematic Courses: We tailored nearly 30 thematic courses to meet the specific learning needs

of employees as required by their business departments supporting employees’professional development.Skills Enhancement Training AI Operations Skills Training

Management Training

We recognize enhancing the capabilities of our management is a core driver

for efficient business operations. In 2024 we targeted training programs for

our management at different levels. The training combined online training Online Learning Platform

camps and face-to-face sessions enhancing participants’d ecision-making

communication and coordination skills through lectures case analysis and

other methods helping them address complex management challenges.High-potential talent: We launched the “Refinement Camp” project in

Hefei Guilin Foshan and other locations to systematically cultivate and

enhance the comprehensive abilities of high-potential employees.Front-line managers: We held several “Wolf Warrior Classes”

achieving a satisfaction rate of 99%. This training helped front-line

managers solidify their management foundation and improve their

execution and team management abilities. Management Training

Middle-level and senior managers: We introduced the “Wolf King “Refinement Camp” ActivitiesClass” courses and “Management Talks” exchange activities.Academy Grand Lectures English StarTalk Academy Small Lectures

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Employee Training Performance We attach great importance to talent selection and have established a well-defined and merit-based standard

and a structured promotion system. From entry-level employees to senior management we set clear

progression paths using competency assessments and practical evaluations to precisely identify and cultivate

Total Investment in Employee Training Total Training Hours outstanding talent. The goal is to select and promote exceptional cadres who can lead us towards steady

2.315 279778 growth injecting strong momentum into our development.RMB million

Cadre Selection Standards

Average Training Training Coverage Rate Training Hours for Proportion of New

Hours per Employee New Employees Employees Trained Core Values Integrity Performance and Work Style Contributions Leadership Decisiveness Execution

58.693.4%942100%

Mid-level Management Proportion of Mid-level Senior Management Proportion of Senior

Training Hours Management Trained Training Hours Management Trained

17266 88% 317 100% Performance Review ReportPractice Review Senior

With Self-Study Managers

Examinations Mid-level Managers

Employee Promotion Frontline Ordinary Managers

To continuously promote talent development the Company has established internal promotion policies Employees Managing the Organization

including the Cadre Management System which defines promotion criteria standardizes the competitive Managing Others

selection process and ensures fairness equity and transparency in the promotion process. At the same time

we have developed a dual-track career track for management and professional roles enabling employees to Self-Management

choose a career development path aligned with their career goals and interests enabling mutual growth for

both them and the Company. High-Potential Talent Promotion Path

We have established a scientific employee promotion mechanism based on departmental development

and individual growth needs. This process evaluates employees across multiple dimensions including job

performance professional ability and professional ethics. Employees are nominated by department heads and To integrate and continuously optimize the strengths

the promotion process includes comprehensive assessments management review interviews and promotion of internal talent we have established the Global In 2024

announcements to ensure high-quality promotions and enhance both the Company’s and employees' core Internal Transfer System offering career development

competitiveness.opportunities for employees across all subsidiaries We recorded 98 internal transfers

Transparent Promotion Mechanism — Dual-Track accounting for 1.66% of the total workforce.Pathways to Guide Career Development globally. This allows employees to find positions that

Professional Career suit their career plans and interests on a global scale.Management Career

Development Path Development Path

Department

Management Technical Expert

Team

Management Senior Personnel

Group

Management Core Personnel

Engineer

Assistant Engineer

Individual Career

Development Path

Dual-Track Career Development Path

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Occupational Health and Safety

Director of the Work Safety Management

Committee | General Manager

Occupational Health Management System Deputy Director of the Work Safety Management Committee

| Manager of EHS Department

We strictly comply with the Law of the People’s Republic of China on Work Safety and actively improve our

occupational health and safety system. We have established a series of policies and measures including the

Occupational Health Management and the Labor Protection Supplies Management System to optimize the Head of Manufacturing Head of Project Head of Quality Head of IT Head of Planning Head of Human

Head of

Management Management Resources Administration

working environment improve facilities and conduct safety training all aimed at preventing occupational and Operations Department and General Affairs Department Department Department Department Department Department

injuries and diseases through a comprehensive approach. Additionally we conduct regular safety inspections

to ensure the safety and health of employees effectively fulfilling our responsibility for work safety. In 2024 we Organizational Structure of Work Safety Management Committee

obtained the ISO 45001 Occupational Health and Safety Management System Certification.Occupational Safety Target Management Progress in the Reporting Period

Continuous Investment in Work Safety A total investment of RMB 3.65 million in work safety

Occupational Disease Incidence Rate: 0% √

No Light or Severe Injuries Fatalities

or Occupational Diseases √

Employee Work Injury Insurance Coverage: 100% √ Total Work Injury Insurance of RMB 2.42 million

Safety Hazard Inspection √ 879 hazards identified with a rectification rate of 100%

Occupational Health and Safety Management System Certification

Work Safety Training Coverage: 100% √ Strengthening Work Safety

To ensure work safety we have established a mechanism for hazard identification and mitigation. We have developed systems

Work Safety Management Committee such as the Safety and Environmental Inspection and Monitoring Management Standards and the Emergency Response and

Control Procedures. Regular emergency drills are conducted to ensure that in the event of an emergency emergency rescue

Organizational Structure: We have established the Work Safety Management Committee which includes corporate operations can be carried out swiftly and efficiently minimizing losses as much as possible.leaders functional department heads and dedicated safety and environmental protection managers. The General Hazard Identification

Manager serves as the Director overseeing overall safety governance while the Manager of the Plant Operations and

EHS Department assists as the Deputy Director. This structure establishes a robust multi-level safety management Work safety hazards are classified based on their severity. Once identified each hazard is registered documented

system to ensure employee safety. and tracked and addressed to ensure that hazard identification and rectification work can be traced.Responsibilities: We have developed the Occupational Safety Health and Environmental Responsibility Management Daily Inspections: Safety inspectors are responsible for conducting detailed inspections of the production site

Standards which clearly define the responsibilities of each department reinforce accountability among department ensuring timely detection and resolution of all types of hazards.Special Period Inspections: During holidays major events or other special periods special hazard inspections are

heads and promote the implementation of comprehensive measures to ensure work safety.organized in advance to ensure safety.Assessments: We have established the Safety Accountability Team to monitor and assess the performance of Regular Special Inspections: Regular comprehensive reviews of production processes equipment facilities and

department heads in the Work Safety Management Committee. The results of these assessments are linked to annual work environments are conducted to enhance overall work safety.performance appraisals enforcing a strict rewards-and-penalties mechanism to encourage departments to enhance

their safety management practices. Emergency Drills

Supervision: The Safety Accountability Team carries out supervision and accountability functions. The senior Emergency Management: An emergency command center has been established to standardize emergency

response procedures. Various comprehensive emergency drills specialized drills and on-site response activities

management sign the Occupational Health and Safety Environmental and Security Responsibility Letter with

are organized.department heads annually ensuring clear accountability at all levels and the effective implementation of workplace

Plan Development: Emergency response plans have been developed for different types of incidents ensuring

safety initiatives. categorized and targeted response strategies.

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Case Fire Safety Drill Safety Culture Development

We place a high premium on fire safety and organize regular fire drills every year. The drills simulate fire We place great emphasis on employees’awareness of In 2024

scenarios with professional instructors guiding employees on the proper use of firefighting facilities teaching occupational health and safety. We organize a variety

escape techniques and thoroughly testing fire alarm systems evacuation routes and other facilities. These of occupational health and safety training activities Quectel Changzhou

efforts aim to enhance employees’ emergency response capabilities and ensure the safety of the Company. and regularly conduct emergency drills for fire safety Total Work Safety Training Sessions: 460

explosion prevention flood and typhoon protection Total Number of Participants in Work Safety

chemical leak handling etc.These initiatives aim to Training: 3878

enhance employees’safety awareness and ability to Total Hours of Safety Training: 5817

respond to emergencies.Case Mandatory EHS Training for New Hires

To enhance new hires’EHS awareness we provide them with EHS

training. This training helps deepen their understanding of the

importance of environmental protection occupational health and

work safety increasing safety awareness and emergency response

capabilities.Safety Risk Prevention and Control Among Employees

To effectively identify and manage environmental hazards we have established the Hazardous and Harmful

Factor Evaluation and Control Table and the Work Injury Emergency Response Plan. These systems provide

comprehensive assessments and accurate identification of potential workplace risks reducing the likelihood of

injuries at the source and ensuring employee safety.Occupational Disease Hazard Management Measures Case First Aid Safety Training

To raise health and safety awareness among all employees we invite professional medical experts from health

Monitoring Regularly monitor occupational disease hazards in the workplace periodically

and Evaluation check-up institutions to deliver first aid and safety training annually. The training covers topics such as basic first

of Hazardous update the Occupational Hazard Factor Identification Summary Table conduct risk

Factors assessments and develop control measures.aid knowledge CPR procedures and how to interpret medical examination reports. Hands-on simulations help

reinforce knowledge ensuring strong support for self-rescue and mutual aid in emergencies.Facility Strengthen and maintain occupational disease prevention facilities to ensure

Maintenance their proper functioning.Health Monitor occupational health establish employee health records and organize

Monitoring regular occupational health check-ups and diagnoses.Training Hold regular training sessions to popularize occupational disease prevention and

and Education enhance employees’protective awareness.

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Promoting Rural Vitalization Social Contributions

We actively support the rural vitalization strategy by providing one-stop smart agricultural solutions to empower Fulfilling Corporate Responsibility

modern agriculture. Leveraging our diverse advantages we contribute to agricultural production support rural

economic development and improve the living standards of the rural population. With the vision of“Building a Smarter Earth” we are committed to making an outstanding contribution to the

global IoT development and creating value for society. With a strategic location in the Yangtze River Delta we

Smart Agriculture actively participate in the“Integrated Development of the Yangtze River Delta”strategy strengthening regional

Promotes Rural Vitalization collaboration and promoting the interated and innovation of communication technologies such as 5G and IoT

thereby empowering the region’s digital economy.As a global leader in IoT solutions Quectel aligns with the development trends and the goals of rural

revitalization. In 2024 we launched the Beidou high-precision agricultural machinery autonomous

driving system—YuanZheng FMA310 leveraging multiple advantages to empower agricultural Contributing to the Local Economy

production.At Quectel we strictly adhere to national laws and regulations such as the Law of the People’s Republic of China

Full-Process Coverage

and Intelligent Management on Enterprise Income Tax the Law of the People’s Republic of China on the Administration of Tax Collection

Covering the entire process from and the Interim Regulations of the People’s Republic of China on Value-Added Tax. We consistently adhere to“plowing planting management to Multiple Operating Modes and integrity business practices fully comply with national tax laws and regulations and ensure timely and fullharvesting” and combined with the Flexible Adjustments

smart agricultural IoT platform the payment of all tax obligations. By fulfilling our corporate tax obligations we contribute to local economic and With multiple operating modes such as

system enables real-time monitoring one-button turn-around operators can social development. In 2024 we paid a total of RMB122.21 million in taxes.and management of agricultural flexibly adjust the operational plan based

High-Precision machinery and operations providing on the terrain and scale of the fields.Positioning and Navigation data-driven decision-making support Supporting the Silver Economy

Integrating Beidou high- and improving management efficiency.precision positioning

Resource Optimization and We focus on the development of the silver economy emphasizing the provision of high-quality convenient and satellite-inertial navigation Environmental

4G communication and Adaptability and Stability Increased Efficiency considerate services for the elderly through technological innovation and industrial upgrades. With advanced

other technologies the Adapting to a wide operational Through high-precision positioning IoT technology and diversified solutions we provide comprehensive safety monitoring and health management

system leverages RTK and temperature range from -30° C to the system optimizes planting spacing

ensuring that tilling fertilization and services for elderly people through the“Internet + Elderly Care”model. These initiatives not only improve the PPP algorithms to achieve 65° C the system enhances the

centimeter-level positioning environmental adaptability of the pesticide spraying cover areas without quality of life for the elderly but also bring convenience to their families and caregivers significantly enhancing

ensuring precise operation equipment ensuring continuous omissions or overlap reducing resource product accessibility and demonstrating our commitment to social responsibility.of autonomous agricultural and stable agricultural production waste and promoting increased agricultural

machinery. in complex environments. yield and efficiency.

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Smart Elderly Care Leads the New Public Welfare Activities

Future of the Silver Economy Support for Higher Education

In 2024 we donated RMB 100000 to Guilin University of Electronic Technology to support campus construction and

developmenthelping the growth and development of students and further advancing higher education.Smoke Detection for Safety

Smart smoke detectors can

continuously monitor smoke Real-Time Location Tracking

Educational Support

In 2024 we donated 3449 items of educational supplies to two

concentration and temperature in Smart wearable devices through a primary schools—Shatou Town Central School and its Shitang

Home Monitoring areas where the elderly are likely to combination of Beidou GPS base stations Branch School in Wuzhou Guangxi Province. The total value of

gather offering multi-level alarms to and Wi-Fi can track the elderly’s location in the donation was RMB 796800 benefiting 1824 teachers and

Smart door magnets with reduce fire risks and ensure safety. real time preventing elderly individuals with

NB-IoT modules are used to students. The donation included electronic devices teaching memory loss from getting lost and providing

monitor the elderly’s status Daily Water equipment and sports supplies significantly improving round-the-clock safety protection to meet

at home in real time. If the Usage Tracking various elderly care needs. the schools’infrastructure and teaching environment. This

door is not opened within 24 Smart water meters with NB- donation highlights our social responsibility in the field of Educational Donation in Wuzhou City

hours the system sends an IoT modules can be used to educational charity.automatic alert to community monitor upload and analyze

staff or family members to water usage data in the Continuous Charity and Follow-up

ensure timely checks. homes of elderly individuals. Remote Medical and Health Management In 2022 and 2023 we donated 2744 items of supplies to 11

If there is any abnormality primary schools in Guangxi Province and organized a follow-up

(e.g. no water usage for In collaboration with medical institutions

and community healthcare providers our visit in 2024. Student representatives expressed their gratitude an extended period) the

smart devices can transmit health data of noting that the donations not only improved their learning system sends an alert and

dispatches personnel for a the elderly in real time to doctors enabling

and living conditions but also taught them the importance

visit to ensure safety. remote diagnosis and health management

of gratitude and giving back to society. The children created

while improving the timeliness and hand-drawn pictures and thank-you letters as a gesture of

effectiveness of medical services. appreciation. Moving forward we will actively participate

in more public welfare initiatives to help more schools and Follow-up Visit in Hezhou City

children.“No Difficulty is Insurmountable and Move Forward with Love” – Joint Volunteering Efforts

On December 18 2024 we organized volunteer activities in six cities simultaneously: Shanghai Hefei Shenzhen

Wuhan Foshan and Guilin. Over 200 employees participated in the event with a total investment of RMB 20000.Volunteers made handmade backpacks canvas bags and pencil cases and printed the children’s artwork onto

the items which were then donated to schools in need. This activity greatly enhanced our reputation as a socially

responsible enterprise showcased our care and strengthened team spirit among employees.Practicing Social Welfare

2024 Quectel’s Social Welfare Key Performance

We uphold a strong sense of social responsibility and actively engage in social welfare activities through Total Number of

donations volunteer works and other initiatives striving to contribute to social harmony. We remain committed Total Volunteering Total Number of Beneficiaries Total Charitable Activity Hours from Our Volunteer Services Beneficiaries from Our Donations Donation Amount

to advancing education by donating educational equipment and student grants and participating in charitable

activities to enhance and optimize educational resources. 224 278 1824 RMB0.8968million

113114

Charitable

Volunteering ActivityGovernance

Improving Corporate Governance 117

Compliance and Risk Management 121

Adherence to Business Ethics 126

Protecting Investor Rights and Interests 129

At Quectel we recognize the critical importance of a sound governance

mechanism to our success. We strictly comply with relevant laws and

regulations including the Securities Law of the People’s Republic of

China the Company Law of the People’s Republic of China the Code

of Corporate Governance for Listed Companies the Measures for the

Administration of Information Disclosure of Listed Companies and the

Rules Governing the Listing of Stocks on Shanghai Stock Exchange. We

continually improve our“Four Modernizations”strategy strengthen

resource integration optimize the organizational structure and further

enhance our core competitiveness.Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Improving Corporate Governance Meeting Details

Number of Meetings Proposals

Corporate Organizational Structure 2 meetings:

Shareholders’ 23 proposals were deliberated

Meeting 1 Annual General Meeting 100% got approved

At Quectel we continuously enhance our governance structure by establishing a corporate governance system that ensures 1 Extraordinary General Meeting

cooperation and complementarity among the Shareholders’Meeting the Board of Directors and the Supervisory Board.Our specialized committees based on internal regulations and practical control requirements implement standardized and 67 proposals were deliberated

efficient management decision-making and operational supervision mechanisms providing professional and precise support 6 meetings

for the board’s decisions. 100% got approvedBoard of

Directors

100% of directors attended

5 22 proposals were deliberated meetings

100% got approved

Supervisory

Board

100% of supervisors attended

100% of approval rate at the three types of meetings

During the reporting period

The specialized committees of the board convened 8 meetings and deliberated 32 proposals:

Number of Meetings Proposals for Deliberation Approval RateOperations of the Three Meetings

Audit Committee 5 21 100%

At Quectel we strictly follow the Company Law of the People’s Republic of China the Code of Corporate Governance Strategy Committee 1 3 100%

for Listed Companies and other relevant regulations and have adopted the Articles of Association of Quectel Wireless

Solutions Co. Ltd. the Rules of Procedure for the Shareholders’Meeting the Rules of Procedure for the Board of

Directors and the Rules of Procedure for the Supervisory Board. These documents help ensure stable and orderly Nominatio Committee 1 4 100%

operation of the Three Meetings system continuously improving the corporate governance structure and ensuring clear

Remuneration and

roles and effective collaboration all governance bodies thus establishing a science-based efficient mechanism for Appraisal Committee 1 4 100%

decision-making execution and oversight.During the reporting period the organization and operation of the Three Meetings followed legal and regulatory

requirements ensuring the protection of all shareholders’ interests in an objective and science-based manner.

117118

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Smart Agriculture Department

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Board Independence and Diversity Remuneration Managemen

At Quectel we recognize diversity as a key factor in enhancing the corporate value and select board members based At Quectel we have established remuneration systems based on industry standards and in compliance with relevant

on the principles of diversity. We promoted the formulation of the Board Diversity Policy to improve the board’s laws and regulations including the Company Law of the People’s Republic of China and the Articles of Association.effectiveness documented in the Board Nomination Committee Work Rules. The main content includes: when We disclose the remuneration of directors supervisors and senior management in regular reports ensuring the

determining the composition of the board the Company considers diversity from multiple aspects including but not professionalism and institutionalization of remuneration management.limited to age gender cultural and educational background professional experience skills and knowledge. All board

appointments are made based on the principle of selecting the most qualified individuals and the benefits of diversity

are assessed objectively when considering candidates.* The remuneration of our directors supervisors and senior management is

determined based on the remuneration levels of the industry and region as well

20% 60 % 20% % 80 as our annual operational performance and performance appraisal results. 0 0 Remuneration * Independent directors’allowances are determined based on our actual

Gender Educational Age Professional Basis

Background conditions referencing industry and regional standards.Diversity Diversity Diversity

Diversity

Females Bachelor’s degree 35-45 years Directors Directors

Males Master’s degree 45-55 years with financial

The remuneration of directors and supervisors is approved by our Shareholders’

with industry

55 years and above expertise or and tax Meeting;* the remuneration of senior management is determined by our Board of

experience management

Decision- Directors.Making Process

experience

The Company strictly complies with the Measures for the Administration of Independent Directors of Listed Companies

and other relevant regulations continuously strengthening the role of independent directors within the corporate Senior management are subject to an annual salar y system. The annual

governance structure and promoting standardized corporate governance. remuneration consists of base salary and performance-based pay. Senior

Independence management and employees are required to meet relevant environmental

management standards enhance environmental performance. Environmental

As of the end of the reporting period our board consisted of 5 members including 2 independent directors Remuneration management-related performance is considered an important factor affecting

accounting for 40% of the total. Structure senior management’s remuneration. This is implemented through signing

In 2024 we revised and established the Independent Director Work System and the Independent Director responsibility agreements and a relevant rewards and penalties system.Special Meeting System ensuring that independent directors can perform their duties independently

provide independent opinions on major corporate matters protect the overall interests of the Company and

particularly safeguard the legitimate rights and interests of minority shareholders. * The base salary is paid monthly.* During the reporting period the company's compensation system of directors

We continuously optimize the board structure emphasize the diversity of board members and encourage each director

supervisors and senior management personnel of the company strictly follows

to express different viewpoints and opinions based on their professional backgrounds thereby enhancing the scientific

Salary Payment relevant systems with reasonable and standardized payment standards

and rational nature of board decision-making. We have also established a science-based performance evaluation matching with performance and development of the company.mechanism and regularly evaluate the board members such as through special reports on the self-assessment of

independent directors' independence. This ensures that they dedicate sufficient time and effort to their duties ensuring

effective performance. To promote digital management we have introduced digital tools (such as an online meeting * Senior management is incentivized and rewarded according to the position

management platform) to improve meeting efficiency and the transparency of decision-making. Additionally we engage value and performance results strictly following the remuneration and bonus

external intermediaries to provide independent financial advisory reports on equity incentive plans ensuring that their policies approved by the Board of Directors.design and implementation comply with regulatory requirements and effectively safeguard the legitimate rights and Incentive * During the reporting period we had no violations of the remuneration

interests of all shareholders. We also arrange for board members to attend relevant training organized by regulatory Implementation management system.authorities and other institutions to enhance their expertise in corporate governance sustainability industry trends

and risk management.

119120

80%

40%

2

2

%

6

0%

%Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

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Compliance and Risk Management Compliance Culture Development

We place great emphasis on building a compliance culture and actively cultivate professional compliance

Compliance System Development management talent. Through various methods such as regular compliance training the development of

compliance manuals and setting up compliance bulletin boards we aim to raise employees’awareness of

At Quectel we emphasize the promotion of a compliance-driven business philosophy and the cultivation of compliance management and encourage them to consciously meet compliance requirements.a compliance culture. We comply with local laws and regulations industry standards and internal rules and

have developed internal documents such as the Export Control and Trade Compliance System and the Contract In 2024

Management System. This ensures the formation of a rigorous compliance management framework to ensure

that all business activities are conducted according to clear compliance guidelines.We organized a total of 265 hours of

Externally we focus on policies regulatory bodies partners shareholders and other compliance-related training with 106

stakeholders with particular attention to risks such as related-party transactions and business participants.External and Internal compliance. Internally we emphasize feedback from our governance bodies employees and

Stakeholder Focus various functional departments to ensure that internal stakeholders' needs are fully addressed.The compliance system covers key areas including corporate governance anti-commercial Compliance Training

Areas bribery information security and data protection product quality environment safety and

employee rights and interests. Risk and Internal Control Management

Policy We continue to develop and improve our corporate compliance policies and processes At Quectel we have established and improved our risk management and internal control systems by formulating

Guidance providing guidance for the system’s operation. internal documents such as the Internal Control Audit Evaluation Guidelines and the Internal Control Manual

(2020 Edition) which define our internal control objectives principles and overall framework. We have also

Review and We regularly conduct reviews and internal audits to identify and correct any potential revised and improved the Comprehensive Risk Management Measures specifying risk management processes

Correction compliance deviations continuously optimizing our compliance management system. across all management levels and fostering a strong risk management culture to enhance our ability to respond

to risks and seize opportunities.Feedback We have established an effective feedback mechanism and channels to encourage employee

Mechanism involvement in compliance oversight activities. During the reporting period

We had no major risk or crisis incidents.Compliance Review Policies

Legal Procedural Thorough Applicable Controllable Risk Management System

Ensure that business

management Ensure that all our Review the logical Compliance Employ professional

actions processes business processes structure and terms management should methods to

Risk Management Principles

and document are carried out in of documents to align with our actual identify and assess

content comply an orderly manner ensure there are business needs potential risks and

with domestic and according to our no loopholes or and operational proactively develop

international laws established norms ambiguities. environment. response strategies Comprehen Effectiveness Prevention Independence Cost-

industry standards and standards. to keep compliance siveness and Control effectiveness

and internal risks within

regulations. acceptable limits.

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Risk Management Process

Risk Management Objectives

Risk Identify internal and external risks related to the achievement of control To avoid and mitigate potential losses arising from risks thereby ensuring the Company's sustained objectives and determine the corresponding risk tolerance. The Internal Audit

healthy development. Identification

Department updates and consolidates the list of risk events at the end of each

year and revises the corresponding risk descriptions in the Internal Control

Manual—Risk Control Matrix.Risk Management Structure

Conduct risk assessments once a year compile a list of major risk events based

Department Responsibilities on the risk control matrix establish a unified standard for risk evaluation form

Risk the assessment conclusion based on the source and scope of the event and the

Assessment comprehensive analysis of the various types of risks determine the risk level

Board of Directors Manage and monitor overall corporate risk at the strategic level. (significant material general) and update the risk determination in the Internal

Control Manual.Supervise the progress and effectiveness of the Company’s risk prevention and

Supervisory Board

monitoring system.Each functional department continuously monitors significant and related risks

Guide risk mitigation efforts approve risk control policies and evaluate the

Audit Committee within their management scope on a daily basis focuses on changes in risk

Company’s risk status and management capabilities. indicators analyzes and evaluates the monitoring results and sets early warning

Risk values for key risk indicators in their respective business process areas. The

Lead the daily operations of risk management and internal control and establish Monitoring Company communicates and provides feedback of risk-related internal control

Management and maintain a risk prevention and internal monitoring system for business and and Early information across different management levels responsible entities business

management processes. Warning links as well as between the Company and external investors creditors clients

intermediaries and regulatory bodies. Any issues found during the communication

Monitor and manage key departmental risk areas on a daily basis and conduct audits

Internal Audit Department process should be reported and addressed in a timely manner.and inspections of the operational processes and results across departments.Responsible for the daily maintenance and management of business and

Departments of Each

Corporate Entity operational processes within their departments identifying key risk areas Risk Control Control measures include segregation of incompatible duties authorization and

performing self-inspections and executing key control procedures. and approval controls accounting system controls and asset protection controls.Response Based on internal control objectives and risk response strategies the Company

combines control measures and applies them comprehensively to effectively

We focus on our overall strategy and business objectives to improve the risk management framework control various business risks.strengthen risk control in key areas and continuously enhance risk prevention capabilities. We implement a

comprehensive closed-loop management process for the identification assessment response implementation

and evaluation of major risks or corporate crises. For newly emerging significant risks without emergency Internal Control System

response plans the management team together with the relevant departments will immediately organize and

coordinate personnel to study develop and implement risk response plans under the supervision of Internal Regarding internal control we have clearly defined objectives principles and an overall framework to ensure

Audit Department. that all framework to ensure that all operations follow structured and consistent processes.The internal control

systems define specific control requirements for key areas with process designs covering all stages from start

to finish and provide detailed operation manuals to offer clear guidance to employees. We integrate internal

documents with external laws and regulations and gradually establish a rigorous internal control system. This

Major Risk or Corporate Crisis Response Procedure

system not only effectively prevents various risks but also provides strong protection for our stable development

and asset security.Establish a risk and Develop a crisis Crisis management Summary and responsibility During the reporting period we continued to enhance our internal control frameworksupervised and crisis response team management plan identification

standardized the implementation of these systems and continuously optimized the internal control system to

ensure that all business activities were efficient legal and compliant. In 2024 we did not identify any significant

123 deficiencies in internal control over financial or non-financial reporting. 124Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance

2024 Environmental Social and Governance (ESG) Report

Classification Details Adherence to Business Ethics

Governance Level: The Board of Directors the Supervisory Board and senior management form

Internal Prevention of Commercial Bribery

a checks and balances mechanism ensuring informed decision-making and effective oversight.Control

Business Level: The organizational structure is divided based on business characteristics and

Structure

management needs with departments collaborating and exercising mutual oversight. Anti-Bribery System Development

At Quectel we have always adhered to the business cooperation principles

During the reporting period

of integrity fairness impartiality and transparency. We strictly follow the

Information Communication: Internal information is shared across departments to facilitate

Internal

coordination and ensure effective communication with external stakeholders. Company Law of the People’s Republic of China the Interim Provisions

Control

Supervision Mechanism: It includes internal audits self-assessments external audits and on Prohibition of Commercial Bribery and other relevant laws and

Mechanism

oversight to continuously monitor and evaluate the effectiveness of internal control. regulations. We have established a series of internal systems including the We had NO incidents of

Company’s Anti-Corruption and Anti-Fraud Management Measures and the commercial bribery or

corruption.Financial Management: The financial approval fund management and accounting procedures Anti-Corruption Standards on Resource Procurement to maintain business

have been established to ensure that financial data is accurate lawful and complete. ethics. Regular anti-corruption training and anti-corruption awareness

Internal Asset Management: Asset acquisition use and disposal control processes have been refined to education are conducted to ensure the implementation of the anti-bribery

Control ensure the safety and integrity of assets. system strengthen market order and safeguard our development with

Process Business Processes: Key areas such as procurement R&D production and sales are managed integrity.in a refined manner and operational processes are standardized to prevent errors and

fraud.Anti-Bribery and Anti-Corruption Measures

In 2024 System Development Employees

We have established a comprehensive job rotation system Employees are required to sign the Employee Integrity

A total of 670 issues were identified through audits with a rectification rate of 83%. requiring key personnel to regularly rotate positions to avoid and Honesty Commitment which standardizes

any individual being solely responsible for a specific business behavior in the workplace and upholds professional

areaeffectively preventing excessive concentration of power. integrity and honesty. 99.2% of our employees

Tax Governance A multi-layered anti-corruption system has also been formed have signed the Employee Integrity and Honesty

including a whistle blowing system and internal audits to ensure Commitment.At Quectel we adhere to the principle of lawful and compliant tax in strict compliance with applicable laws and cost transparency and maximize corporate interests. Through

regulations such as the Law of the People’s Republic of China on the Administration of Tax Collection the Law dynamic optimization and system integration we have built a Anti-Corruption Training

of the People’s Republic of China on Enterprise Income Tax the Interim Regulations of the People’s Republic of comprehensive anti-corruption network covering processes We conduct several anti-corruption compliance and

China on Value-Added Tax and the tax policies of the country or region where we operate. We diligently fulfill personnel and supervision providing a solid foundation for our integrity training sessions for all employees every

our tax payment obligations ensuring the accuracy and timeliness of tax declaration. sustainable development. year interpreting relevant domestic and international

We consistently regard tax compliance as an important responsibility. Through continuous internal training and Audit and Fraud Prevention laws and regulations as well as our anti-corruption

external consultation we stay updated on the latest tax policies. Throughout the year there were no significant mechanisms and management measures to raise Our Audit Department is responsible for reviewing and

employees’a wareness of integrity.tax violations maintaining our strong tax credibility and corporate image. evaluating the establishment and implementation of the anti-

We actively strengthen communication and collaboration with tax authorities stay informed about changes corruption and anti-fraud control mechanisms. It supervises and

in tax laws and regulations enhance learning on tax policies and continuously improve the comprehensive manages key business processes departments and personnel

capabilities of our tax management personnel. This ensures the adaptability and foresight of our tax in crucial roles to ensure integrity and compliance conducting

regular or ad-hoc inspections.management. By reasonably planning taxes we ensure we fully benefit from tax reduction policies while

operating in full compliance thereby increasing corporate profits. Supplier Code of Conduct

We require all suppliers to sign the Supplier Integrity

Commitment before cooperation promising to eliminate

bribery refuse extortion voluntarily declare related party

relationships and adhere to the principles of honesty ensuring

the authenticity of materials.

125 126Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Anti-Commercial Bribery Training Performance in 2024 Anti-Unfair Competition

Total Number of Participants in Anti- Total Number of Anti-Commercial Employee Training Pass Rate We strictly adhere to the Anti-Monopoly Law of the People’s Republic of China the Anti-Unfair Competition Law

Commercial Bribery Training Bribery Training Sessions of the People’s Republic of China the Foreign Trade Law of the People’s Republic of China and relevant laws

1275 36 100% and regulations in domestic and international business locations. Our operations comply with the principle of

fair competition and we have established internal policies such as the Code of Business Ethics and Compliance

Guidelines to ensure that transactions with customers suppliers and other business partners are conducted

fairly and with integrity thus contributing to the maintenance of a healthy market environment and achieving

Whistleblower Protection greater social benefits.We have established multiple public reporting channels to jointly uphold our reputation for integrity image and

promote the healthy development of the entire industry making a positive contribution to the creation of a fair During the reporting period

and transparent market environment.There were NO lawsuits or significant administrative penalties resulting from our unfair competition behavior.Whistleblower Protection Policy

Code of Conduct on Anti-Unfair Competition

Strict We are committed to strictly maintaining the confidentiality

Information of the whistleblower’s identity and preventing any form of

Confidentiality disclosure.Confidentiality of Trade Secrets Opposition to Illegal Export Control

Avoiding We ensure that whistleblowers do not suffer any adverse

Business Practices

Negative Impact impacts on their job positions compensation career

development etc. We sign Non-Disclosure We prohibit false or We comply with United

We will take strict disciplinary action against any attempts Agreement with employees misleading business Nations and relevant national

Prevention of

Retaliation to retaliate against whistleblowers and ensure they are suppliers and partners to promotion through export control trade control

not subject to any retaliation or threats. protect sensitive business advertising or other and embargo regulations to

information. We prohibit means regarding business prevent monopolistic and

We have established a rapid response mechanism with

a dedicated investigation team from the Internal Audit any illegal acts such as reputation product unfair competition issues

Prompt Handling Department to investigate whistleblower reports fairly bribery coercion and theft performance etc. arising from improper export

of Complaints objectively and professionally. Timely feedback on the that may infringe upon our activities.progress and the investigation results will be provided to

the whistleblower. competitors’ trade secrets.We offer monetary rewards of 10%–20% of the direct

Whistleblower financial loss recovered based on the whistleblower’s

Reward System effective evidence or non-material rewards such as

recognition commendations and awards for outstanding

contributions.Reporting Channels

Whistleblower mailbox email telephone our WeChat official account QR code

and the online EIP compliance platform.

127 128Quectel: Empowering a Connected 2024 Environmental Social and Governance (ESG) Report

World with Ambitions ESG Governance Environment Society Governance

Protecting Investor Rights and Interests Investor Returns

At Quectel we have established systems such as the Investor Relations Management System the Information Since going public we have distributed cash dividends 6 times with a total amount of approximately RMB

Disclosure Management System and the Board Secretary Work Guidelines to ensure that investors receive 495 million.information in a timely and fair manner. We provide multiple communication channels for investors patiently We have evaluated the feasibility of multiple dividends and in accordance with relevant regulations

answering their inquiries and establishing a responsible and reliable corporate image. convened the Shareholders’ Meeting to authorize the Board of Directors to formulate and implement

interim dividend plans. Our 2024 semi-annual cash dividend was RMB 68030990.04 (pre-tax)

Investor Communication accounting for 32.49% of the net profit attributable to shareholders in the 2024 semi-annual consolidated financial statements.We are committed to enhancing the breadth and depth of communication with investors continuously Our annual cash dividend for 2024 is estimated to be RMB 109.90 million (this is an estimate and the

expanding investor relations management. We have established a multi-level communication mechanism. actual dividend amount will be subject to the approval of the 2024 annual shareholders’meeting).Through various channels we maintain timely and efficient communication with investors fully understand We repurchased our shares in 2023 and 2024 with a total amount of RMB 106 million and on November

their needs answer their questions and absorb their feedback and suggestions. 12 2024 the repurchased shares were canceled totaling 2917252 shares accounting for 1.10% of the

total share capital before cancellation.Investor Communication Channels Information Disclosure Management

Shareholders’ Investor SSE e-Interactive At Quectel we adhere to the principles of truthfulness accuracy

Meetings Hotline Platform Seminars and transparency in information disclosures in compliance with the During the reporting period

Investor Analyst Visitor Measures for the Administration of Information Disclosure of Listed

Briefings Meetings Roadshows Reception Companies and other relevant laws and regulations. We have established There were NO instances

internal management documents including the Information Disclosure of publishing correction or

Management System the Management of Insider Information and supplementary announcements

Insiders the Internal Reporting System for Major Information and the nor did we face regulatory

Regular Training Management of Deferred and Exempt Business in Information Disclosure penalties for information

to improve disclosure quality and transparency enhance the readability disclosure violations.and clarity of announcements and integrate with our operational and

We regularly provide systematic training on investor relations management for directors

financial conditions helping investors to stay informed of significant

supervisors senior management and relevant personnel.matters and maximizing the protection of investor rights and interests.Disclosure Results

During the reporting period

Sessions of Investors Participated Earnings we disclosed a total of 113 announcements and

Investor Reception in On-site Research Briefing Sessions related documents (4 regular reports and 109

11 87 3 interim announcements).we received an "A"rating from the SSE for our

information disclosure work for three consecutive

Online Responses Responses to e-Interactive Investor years.to Investor Inquiries Platform Inquiries Conference Calls

Our 2023 ESG Report received an A rating

248 256 6 from Sino-Securities Index Information Service

(Shanghai) Co. Ltd. and a BBB rating from Wind. Sino-Securities Index ESG Ratings Wind ESG Rating

129 130Quectel: Empowering a Connected

World with Ambitions ESG Governance Environment Society Governance

2024 Environmental Social and Governance (ESG) Report

Benchmarking Index Table Guidelines No. 14 of Shanghai General Framework of the

Chapter Stock Exchange for Self- China Corporate Sustainability Regulation of Listed Companies— Reporting Guidelines (CASS- GRI Standard 2021

Sustainability Report (Trial) ESG 6.0)

Environment

Guidelines No. 14 of Shanghai General Framework of the

Chapter Stock Exchange for Self- China Corporate Sustainability Regulation of Listed Companies— Reporting Guidelines (CASS- GRI Standard 2021

Promoting the Circular

Article 37 E3.3.2/E3.3.3/E3.3.4 /

Economy

Sustainability Report (Trial) ESG 6.0)

Safeguarding

About This Report 第六条 P1.1/P1.2 2-1/2-2/2-3 the Ecological Article 32 E2.3.1/E2.3.2/E2.3.3 101-1/101-2/101-4/304-2

Message from Our Environment

Chairman / P2.1 / Green and Low-Carbon

Quectel: Empowering a Connected World with Ambitions Article 20 / /Operations

About Us / P3.1/P3.2 / Society

Our Business / P3.3 2-6 S2.1.1/S2.1.2/S2.1.3/S2.1.4/Driving R&D

Article 41 42 43 S2.1.5/S2.1.6/S2.1.7/S2.1.8/ 2-4

Our History / / 2-28 Innovation S2.1.12/S2.1.13

Honors in 2024 / / 2-28 Contributing to

ESG Performance Digital Intelligence Article 42 S2.1.13/G1.1.12

Highlights / / 2-27 Development

ESG Governance Product and Service 2-4/2-23/2-24/2-25/2-Article 47 S3.3.1/S3.3.2/S3.3.4/S3.3.6

Quality 26/416-2/417-1/417-2/417-3

Sustainable Development

Governance Structure Article 12 G1.1.1 2-14 Supply Chain S3.1.1/S3.1.2/S3.1.3/S3.1.4/ 2-25/2-28/308-1/308-2/

Sustainable Development Article 45 46Article 11 12 G1.1.2/G1.1.3/G1.1.5 2-17/2-18 Management S3.2.1 414-1/414-2Management Mechanism

Data Security and

2-4/2-14/2-29/3-1/ Article 48 S3.4.1/S3.4.2/S3.4.3/S3.4.4 2-23/418-1

Materiality Analysis Article 5 53 G1.1.9/G1.3.1/G1.3.2 Privacy Protection

3-2/3-3

2-7/2-23/2-25/201-1/

Environment S4.1.1/S4.1.3/S4.1.4/S4.1.5/ 201-3/401-1/401-2/Safeguarding

S4.1.6/S4.1.7/S4.1.9/S4.1.11/ 403-1/403-2/403-3/

Employee Rights and Article 49 50

E1.1.1/E1.1.2/E1.1.3/ S4.1.12/S4.2.1/S4.2.2/S4.2.3/ 403-4/403-5/403-6/Interests

E1.1.4/E1.1.6/E1.1.7/ 201-2/305-1/305-2/ S4.2.4/S4.2.5/S4.2.6 403-7/403-9/403-10/Climate Change

Response Article 21 22 23 24 25 26 27 404-1/404-2/405-1E1.1.8/E1.1.14/E1.1.15/ 305-4

E1.1.16 Promoting Rural Article 39 S1.1.1/S1.1.2 2-23/201-1/203-2/415-1

Vitalization

Environmental

Compliance Management Article 33 E2.1.1/E2.4.1/E2.4.2/E2.4.3 2-23/2-27 S1.2.1/S1.2.2/S1.2.3/S1.2.4/ 2-23/201-1/203-1/Social Contributions Article 40

S1.2.5/S1.2.6 203-2/413-1/413-2/415-1

Governance

E2.1.2/E2.1.5/E2.1.6/ 303-2/303-4/305-7/

Emissions Management Article 30 31 E2.1.7/E2.1.8/E2.2.1/ 306-1/306-2/306-3/ Improving Corporate 2-9/2-10/2-12/2-16/2-19/Article 12 53 G1.1.1/G1.1.4

E2.2.3/E2.2.5/E2.2.6/E2.2.7 306-4/306-5 Governance 2-20/2-23

Compliance and Risk

Article 12 / 2-23/207-1/207-2

Management

Optimizing Energy E3.1.1/E3.1.2/E3.1.3/ G2.1.1/G2.1.2/G2.1.3/G2.1.4/

Management Article 35 302-1/302-3/302-5 Adherence to Business E3.1.4/E3.1.5 Article 55 56 G2.1.5/G2.1.6/G2.1.7/G2.2.1/ 2-23/2-24/2-25/2-26/205-2Ethics

G2.2.2

Enhancing Water Protecting Investor

Resource Utilization Article 36 E3.2.1/E3.2.2/E3.2.3/E3.2.4 303-5

Article 53 G1.3.1/G1.3.2 2-4/2-23

Rights and Interests

Benchmarking Index

Article 57 A3 /

Table

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