This Report

This Report

This Report discloses in detail the practices and performance of Jack Technology Co. Ltd. in the areas of economic

environmental social and corporate governance responsibilities in 2024 aiming to communicate effectively with stakeholders Data description

and systematically respond to their expectations and requirements.The data sources used in this Report include original data from the Company's actual operations public data from government

Reporting period departments annual financial data internal relevant statistical reports third-party questionnaires and third-party evaluation interviews. The financial data in this Report is in RMB. In case of any inconsistency with the financial report the financial report shall prevail.This Report is an annual report covering the period from January 1 2024 to December 31 2024.Title description

Scope For the convenience of expression and reading "Jack Technology Co. Ltd." is also referred to as "Jack" "the Company" or "we" in this

Report.This Report discloses the information on fulfillment by Jack and its subsidiaries of their economic social environmental and

corporate governance responsibilities with relevant typical cases coming from affiliates of the Company. Reliability assurance

Period The Company guarantees that the contents of this Report are true accurate and complete and are free of any false records misleading statements or major omissions.The period covered is from January 1 2024 to December 31 2024. To enhance the comparability and forward-looking nature of

this Report some contents are appropriately extended to the previous and subsequent years. Access method

This Report is available for your reading in electronic form. You can visit the Company's official website (https:/www.chinajack.com) or

Preparation basis the website of Shanghai Stock Exchange (www.sse.com.cn) to access it. In case of any questions or suggestions about this Report

please send an email to IR@chinajack.com or call 0576-88177757

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

Implementation)

AI

United Nations Sustainable Development Goals (SDGs)

Global Reporting Initiative Standards (GRI Standards) of Global Sustainability Standards Board

Guidelines for China's Corporate Social Responsibility Reporting (CASS-ESG 6.0) of Chinese Academy of Social Sciences

Guidance on Social Responsibility Reporting (GB/T 36001-2015) of China National Institute of Standardization

ISO 26000: Guidance on Social Responsibility (2010) of International Organization for Standardization

01 02Message from the Chairman

Message from the Chairman

The year 2024 witnessed the complex and volatile global economic situation increasingly fierce market competition and of electricity generation throughout the year reducing H1 intelligent single machine H2-1 digital intelligent total solution H2-2

continuous breakthroughs in technological innovation. In such an era Jack has always been firm in its mission that "intelligent 14500 tons of carbon dioxide equivalent and effectively green digital intelligent total solution and H3 AI unmanned intelligent total

connection for total solution grants intelligent garment manufacturing unlimited possibilities". Driven by innovation with reducing the Company's environmental impact. In solution driving the Company to a new stage of intelligence digitalization

intelligent manufacturing as the core and sustainable development as the goal Jack has promoted the industry towards addition we actively adopted non-toxic and harmless and greening.higher quality higher efficiency and more intelligence. Faced with the trend of global industrial chain restructuring we have green raw materials and environmentally friendly new

continuously optimized management models deepened global supply chain collaboration improved production efficiency materials and accelerated green technology innovation We will keep in mind the customer-centric approach solve users' pain

strengthened green manufacturing and worked with partners in a more open manner to jointly create a sustainable intelligent such as green design energy-saving manufacturing and points and industry problems focus on creating hot products continue

manufacturing ecosystem. recycling realizing a win-win situation of economic and to innovate product categories accelerate high-end breakthroughs start

environmental benefits. with the end in mind act with unwavering resolve to honor our users and

uphold our industry and move towards comprehensive and high-quality

Innovation breakthroughs: build core deepened the reform of the industrial chain optimized Responsibility-driven leadership: build a development through value marketing. The hardest road is the road to

competitiveness resource allocation through end-to-end high-quality collaborative ecosystem victory! Standing at a new starting point we are willing to work hand in

management and promoted the localization intelligence hand with global customers partners suppliers and all sectors of society

Technological innovation is the core driving force for and standardization of core components to enhance The success of a company is not only about commercial to jointly promote high-quality and sustainable development of the industry

the Company's development. In 2024 we continued the stability and efficiency of the industrial chain. In value but also about social responsibility. Jack always and create a more brilliant future!

to develop key areas such as intelligent sewing digital terms of industrial chain collaboration we continued to adheres to the development concept of people first

factories and automated production lines. Through optimize the global procurement system strengthened and value sharing actively practices corporate social

the hot product strategy we successfully launched partnerships and built an efficient flexible and responsibility and promotes the fair development of

flagship products such as "A.M.H" and "Urus" leading sustainable industrial ecosystem with higher quality society and the healthy growth of the industry. In 2024

the garment manufacturing industry into the era of standards and faster response speeds. With a zero- we continued to deepen the "filial piety culture". We not

intelligent quick response. We continued to accelerate defect quality management system we enhanced quality only engaged in public welfare undertakings through

SKU streamlining improved R&D efficiency optimized awareness and optimized manufacturing processes to the Zhejiang Filial Piety Sewing Foundation but also

product structure and promoted the development of the ensure that product quality reaches the world's leading actively leveraged our own advantages to actively carry

Company's products towards high-end intelligent and level. out a number of social responsibility projects such as

flexible. Meanwhile we expanded into new business rural revitalization talent cultivation and educational

areas such as software and intelligent warehousing Meanwhile we actively improved the service system assistance conveying the Company's warmth and

and accelerated the layout of cutting-edge technologies based on customer needs to provide more competitive contributing to the sustainable development of society.such as humanoid robots injecting new impetus into the solutions for global garment manufacturers. We further Meanwhile we were committed to building a win-

Company's long-term growth. strengthened localized operations overseas improved win industrial ecosystem. We worked with partners

service capabilities in key markets such as Bangladesh to promote technological innovation and intelligent

In terms of management improvement focusing on Cambodia and Vietnam optimized the logistics network manufacturing upgrades so as to enhance the overall

end-to-end business optimization we accelerated the improved delivery efficiency and helped customers competitiveness of the industry and contribute to

Company's digital transformation and improved supply reduce costs and increase efficiency enhancing their the high-quality development of the global garment

chain collaboration efficiency. At the same time relying market competitiveness. manufacturing industry.on Business School we strengthened management

system innovation promoted management upgrades of Green manufacturing: practice sustainable Looking forward to the future: work together to

upstream and downstream companies in the industrial development create brilliance

chain and empowered partners to jointly create first-

class comprehensive competitiveness of the industrial Low carbon and environmental protection have become The year of 2025 is a critical year for Jack to achieve

chain. important trends in the global manufacturing industry. In its goal of "Surpassing RMB 10 Billion and then

2024 we continued to promote green manufacturing Accelerating Toward RMB 100 Billion" and a new

Supply chain optimization: help industry comprehensively optimized production processes starting point for promoting globalization intelligence and

collaborative development improved energy efficiency and reduced carbon sustainable development strategies. In the future Jack

emissions contributing to the sustainable development will continue to deepen the Six Core Commitments fully

A strong industrial chain system is the cornerstone of the of the industry. We carried out photovoltaic power promote the Five Critical Campaigns and accelerate

Company's stable growth. In 2024 we comprehensively generation projects achieving 17.5015 million kWh the promotion of the three major growth curves namely

03 04Jack

Jack Outstanding performance

Jack is one of the global listed companies with the largest production and sales volume and the

Company profile Global sales strongest comprehensive strength in the global intelligent storage and production equipment industry; ranks first in

the industry for the Company has more than 8000 channels and more than 600 suppliers in more than 170

14 consecutive countries; its global sales of industrial sewing machines have been ranked first for 14 consecutive

years years since 2010 export volume ranked first in the industry since 2011 and global sales ranked first

in the industry since 2020*

Company profile

In terms of R&D innovation Jack insists on long-term high R&D investment; the Company cooperates

Long-term in innovation with well-known universities technology and innovation-based enterprises and leading

Jack Technology Co. Ltd. (stock code: 603337) founded in 1995 is investment in

R&D industry- customers to continuously improve comprehensive R&D capabilities and iterate new products; the

one of the companies with the largest production and sales scale and leading patents Company owns 3254 valid patents and software copyrights far leading the industry in terms of

the strongest comprehensive strength in the global intelligent sewing The Company has patent holdings.equipment industry. The Company is the industry's only one with the

intelligent manufacturing software system integrating PDM APS MES more than 8000 dealers worldwideWMS and artificial intelligence. The Company is a service provider Achieve great results in Jack acquired the world-renowned benchmark companies including Germany's Bullmer and

of intelligent total solutions for intelligent garment manufacturing that international M&A TOPCUT in 2009 and successively acquired several industry-leading companies such as Italy's

integrates software and hardware such as intelligent warehousing of and promote Maica and Vibemac from 2017 to 2020 obtaining a number of world-leading technologies; the

clothing fabrics and accessories intelligent cutting AI scheduling and development Company realizes R&D linkage among Germany Italy and China and builds a global technology through

hanger system intelligent sewing intelligent sorting and digital finished Marketing network covers collaborative R&D platform helping the Company develop rapidly.product warehousing. The company has more than 8000 dealers

worldwide and a marketing network covering more than 170 countries and more than 170 countries and Jack recruits local talents from all over the world carries out customized training and organizes

regions around the world and serve many fields such as garment shoe regions around the world Attach great employees to come to China for training and exchanges on a regular basis helping employees

luggage furniture leather auto and aviation. importance to

the cultivation improve their professional skills. At the same time the Company builds a comprehensive incentive

and retention of 3+3 system to improve the salary competitiveness of overseas employees in all respects. The

global talents Company also sets up an internal promotion channel for overseas talents and provides mentor

guidance for employees to help them grow in their careers.Empower Jack has established the world's largest smart factory in the intelligent storage and production

intelligent equipment industry invested RMB 100 million to build the world's first intelligent production line for

sewing machine

manufacturing machine casings and explored intelligent solutions for the entire sewing manufacturing process. The

with the digital Company empowers manufacturing with AI builds a full-scenario digital platform for enterprises and

platform continuously meets customer needs.Continuously Jack has pioneered the concept of strategic suppliers in the industry and closely integrated the

empower

suppliers to build Company's overall development strategy with strategic suppliers. Through digitalization and

a supply chain management output the Company continuously empowers the supply chain improves suppliers'

ecosystem intelligent manufacturing and business management levels and builds a supply chain ecosystem.Build an industry

benchmark Jack insists on the customer-centric approach deeply gains insight into customer needs grasps

to help the

transformation industry trends strengthens joint innovation with major customers focuses on creating hot products

of intelligent promotes the digital transformation of the garment industry and empowers new quality productive

garment forces.manufacturing

* Source from: Research of Frost & Sullivan global and China sewing machinery associations and industrial sewing product data disclosed by sewing

companies

05 06Jack

Development history

International trade stage (1995-2003) 2011 2013 2024

1995 Jack took an invincible lead in global sales Comprehensive strength ranked first in the industry. Relocation of headquarters in Hangzhou

The construction of the headquarters at Jiaojiang Urus the flagship hot product was released globally

Globalization stage (2010-2018) started Obtained the certification of "No.1 in Global Sales for 14 Taizhou Feiqiu Sewing Machine Co. Ltd. was Consecutive Years"

established

2015

1996 2009 A4 led the industry into the "talking" era 2023

Acquired Germany's TOPCUT and Bullmer entering

The first baby overlocker metalworking production line The industry's first intelligent production line was

the pre-sewing field Exclusively sponsored the "Annual A.M.H was released globally

was put into operation officially launched in Jack

Award for China Garment Brand" Jack was rated as a national green factory

2017

1999

2007 A-share listing

The first self-developed overlocker was successfully 2022

Acquired Italy's Maica

launched. The "three-day and three-night" meeting on

enterprise management transformation was held The construction of Jack Linhai Industrial Park officially Won the title of Future Factory in Zhejiang Province

started

2018

Internationalization stage (2004-2009)

2000 Acquired Italy's Vibemac 2021

Acquired Anhui Jieyu entering the shoemaking field

Two modern factories were completed

2003 The foundation stone for Jack Smart Factory was laid Entered the intelligent total solution

Jack Sewing Machine Co. Ltd. was renamed Jack Technology

New Jack Company the Company's predecessor was

2001 Global leadership stage (2019-present)

Co. Ltd.established

"Feiqiu" was officially renamed "Jack" 2019

2020

Jack trademark was successfully registered 2002

Entered the intelligent hanger system industry

Entered the intelligent fabric inspection

The first national dealer meeting was held in Jack moved its headquarters from Xiachen factory to machine industry

Yandangshan Chaoyang Manor Hotel setting a Jiaojiang factory Jack Intelligent High-end Sewing

precedent in the industry Equipment Manufacturing Base was

officially put into production

07 08Jack

Events April 2024

The Intelligent Efficient Digital Automatic Cutting Line jointly

submitted by Jack and Bullmer and Zhejiang University won

January 2024 the first prize of the 2023 Science and Technology Progress

Award of China National Light Industry Council.Jack held a signing ceremony for brand strategic cooperation with

Dentsu a world-renowned 4A advertising and communication

group.Jack won the first prize of the 2023 Science and Technology Progress

Award of China National Light Industry Council

RUAN Jixiang the founder and Chairman of Jack attended

the "Longpan-2024 Asian Business University Annual Summit

Forum" held in Hong Kong.June 2024

Jack held its 2023 Annual Management Meeting with great

Longpan - 2024 Asia Business Academy Annual Summit

fanfare. RUAN Jixiang the founder and Chairman of Jack Jack's 2024 global new product launch event under the theme

delivered a keynote report entitled Focus on Creating Hot of "To Be the King of Cross Seam" kicked off at the Chimelong

Products Comprehensively Improve Efficiency; Develop New International Exhibition Center with more than 30 parallel

Business Jointly Make Efforts to Break Through RMB 10 Billion venues in China Cambodia Vietnam and other countries

which for the first time proposed the guiding ideology of "Six grandly launching a new product - "Urus" with order amount

Core Commitments and Four Critical Campaigns" for business exceeding RMB 480 million within 5 hours.transformation.Jack signed a strategic cooperation agreement with Dassault

Systèmes a world-leading provider of digital industrial

solutions. Jack and Dassault Systèmes signed a strategic cooperation agreementFebruary 2024

RUAN Jixiang the founder and Chairman of Jack led all EMT

members and core management staff of the first and second July 2024

level departments to start the three-year "Jack Red Tour" again

after the "65 New Long March" in 2004 with the first stop being Jack and Crosby jointly launched a zero-defect system

Gutian Longyan Fujian. education project.Jack and Shenzhen Siyu Vision Technology Co. Ltd. officially The China's Future Star Enterprises Annual Conference 2024

launched the MTM lean project together. hosted by the China Entrepreneur Magazine was held in

Jack's Revolutionary Journey Shanghai. RUAN Jixiang the founder and Chairman of Jack

attended the conference and delivered a keynote speech

entitled Stick to the Original Intention and Create the Future

with Innovation.March 2024 Jack and Crosby jointly launched a zero-defect system education project

Jack held the kickoff meeting for the Performance Excellence

Project at its headquarters in Jiaojiang.Jack held a briefing on the Notice on 2024 Comprehensive

Incentive System and Salary.The book Hidden Champion Jack jointly planned and published August 2024

by GEONOL CONSULTING and BLUE LION was launched

on platforms such as Dangdang Taobao JD.com and Xinhua The theme release conference of Soul of the Enterprise:

Bookstore. Excellent Cases of Corporate Culture in Zhejiang Province in

2023 was held in Hangzhou. Jack's corporate culture case

The national "2024 Vocational Capacity Building Symposium" Jack’s Unveiling as a Hidden Champion Culture as the Core: Promoting High-Quality Development of

was grandly held in Taizhou. Directors general and division Enterprises was selected as an excellent case of corporate

directors of human resources and social security departments culture construction in Zhejiang Province in 2023.from provinces across the country visited Jack to learn about the Jack's corporate culture case was selected as an excellent case of

corporate culture construction in Zhejiang Province in 2023

construction of its skill-based wealth-creating enterprise.

09 10Jack

September 2024 November 2024

Yi Lianhong former Secretary of the Zhejiang Provincial The "Home in China · Changning Cultural and Economic

Party Committee visited Jack to inspect the industrial Exchange Conference" was grandly held in Shanghai. Ruan

Internet platform of the sewing industry and the construction Jixiang the founder and Chairman of Jack delivered a

of future factories and learn about the development of digital keynote speech entitled Jack's Path to Global Growth which

empowerment of new quality productive forces. He praised vividly demonstrated Jack's outstanding achievements and RUAN Jixiang founder and chairman of Jack delivered a

keynote speech entitled Jack's Path to Global Growth

Jack as a model of "sweet potato economy". firm beliefs in the global market.Jack ranked 78th on the 2024 List of 500 Private Enterprises The Ministry of Industry and Information Technology officially Leaders visited Jack

with Invention Patents. announced the 2024 list of 5G factories and Jack was

successfully selected for its outstanding 5G technology

The grand relocation ceremony of Jack's headquarters in application and intelligent manufacturing.Hangzhou was held at the Linping Chamber of Commerce

Building with the theme of "Moving towards the New and Zhang Zhenfeng Deputy Governor of Zhejiang Province

Pursuing Dreams on the Way" and Secretary of the Wenzhou Municipal Party Committee

led a Wenzhou municipal party and government delegation

on an inspection tour to Jack. During the visit he urged the

Company to steadfastly leverage technological innovation Jack was successfully included into the 2024 list of national 5G

October 2024 as a growth driver accelerate its transformation towards factories of the Ministry of Industry and Information Technology

premium intelligent and sustainable development models

and spearhead high-quality corporate advancement.Jack welcomed two heavyweight new members Nick

(American) a Ph.D. from Harvard University and LI

Yuanheng a postdoctoral fellow from Harvard University.December 2024

The Supplier Conference of Jack was grandly held in

Chizhou Anhui. At the conference the proposal to cancel

acceptance on deviation and implement a supplier elimination The second technology conference of Jack was grandly held

mechanism was put forward for the first time. at its headquarters in Hangzhou attracting the participation of

leaders of industry associations and many industry experts.Witnessed by Jack's global dealers and representatives from

more than 100 garment enterprises Frost & Sullivan a world- The 40th Anniversary Celebration and the 11th Council's

renowned enterprise growth consulting firm awarded Jack 4th Expanded Meeting of the China Sewing Machinery

the certificate of "No.1 in Global Sales for 14 Consecutive Jack welcomed two new heavyweight members from Harvard University Association were held in Beijing. Jack was awarded the

Years". title of "Meritorious Enterprise" and its President of Human

Resources Qiu Yangyou and President of Product Team

Wind a well-known financial data and analysis tool service

Hu Wenhai were awarded the honorary title of "Advanced

provider released the 2023 ESG rating results and Jack was

Individual".rated "AA". Jack was awarded the title of "Meritorious Enterprise"

The Economy and Information Technology Department of

The Company was awarded the annual brand of 2024 Great

Zhejiang announced the second batch of Eagle enterprises

Brand becoming the only enterprise in the industry to receive

in Zhejiang Province including Jack marking an important

this honor.breakthrough for Jack in technological innovation industrial

The Organization Department of the Zhejiang Provincial Party development and market competitiveness.Committee announced the second batch of typical cases of

provincial joint party building. Jack was selected as a case of Frost & Sullivan a world-renowned enterprise growth

"Joint Party Building in Sewing Industry Common Prosperity consulting firm awarded Jack the certificate of "No.1 in Global Sales for 14 Consecutive Years"

Red Chain of Jiaojiang District Taizhou City" as a leading

enterprise of the industrial chain.

11 12Jack

Corporate culture Honors

Jack takes Taizhou's Hehe culture and Dachen Island's reclamation spirit as its corporate culture genes. In long-term practical exploration

the Company integrates Chinese traditional cultural genes with Western management culture considers corporate culture at a strategic level

enhances core competitiveness through corporate culture innovation continuously enriches and improves the connotation of corporate culture Single Champion Enterprise

and actively practices customer-oriented culture focusing & concentration culture continuous change culture hard working culture and filial in Manufacturing National 5G Factory

piety and gratitude culture injecting inexhaustible power and source into Jack's comprehensive and high-quality development.April 9 2024 November 2024

The Company's senior leaders have always adhered to the mission of "intelligent connection for total solution grants intelligent garment

manufacturing unlimited possibilities" pursued the vision of "becoming the most trusted partner in the global garment industrial chain" Ministry of Industry and Information Information and Communications Technology Administration of the Ministry of Industry and

carried forward the corporate spirit of "harmony integrity fighting and rising" and adhered to the core values of "customer first focusing & Information Technology

concentration hard working co-creation and sharing" creating value for customers welfare for employees market for suppliers returns for

shareholders and benefits for society. National Key R&D Program Eagle Enterprise in Zhejiang

(Intelligent Robot) Province

In 2024 Culture as the Core: Promoting High-quality Development of Enterprises a corporate culture case of Jack was selected as an

outstanding case of corporate culture construction in Zhejiang Province in 2023. December 23 2024 December 18 2024

Industry Development and Promotion Center Economy and Information Technology

of the Ministry of Industry and Information Department of Zhejiang

Technology

Science and Technology Progress Chinese Brand Value Assessment

Award of China National Light (Strength of 893 brand value of RMB

Industry Council (First Award) 2.284 billion)

Mission Vision Entrepreneurial spirit Values February 26 2024 May 2024

China National Light Industry Council China Council for Brand Development

"Intelligent connection "Becoming the most "Harmony integrity Customer first

for total solution grants trusted partner in the fighting and rising" Focusing & concentration

intelligent garment global garment industrial Hard working Manufacturing Quality 5G Fully Connected Factory in

manufacturing unlimited chain" Co-creation and sharing Benchmark in Zhejiang Zhejiang Province Province

possibilities" December 16 2024 December 27 2024

Economy and Information Technology Economy and Information Technology

Department of Zhejiang Department of Zhejiang

Development strategy 500 Chinese Private Zhejiang Provincial Key Enterprises with Invention

Enterprise Research Institute Patents in 2024 (No. 78)

December 31 2024 2024

Jack formulates medium- and long-term plans based on the Business portfolio

Economy and Information Technology All-China Federation of Industry and corporate vision mission and values focusing on the main Department of Zhejiang Commerce

channel customer value and creation of hot products. With

business portfolio as a guide and management system as H3: AI unmanned intelligent total solution

a support the Company builds product strength marketing Humanoid robots frameless torque motors etc.Top 100 Enterprises in Creativity

strength organizational strength and operation strength in a in Zhejiang Province (No.24) Red Dot Winner 2024 for

coherent manner promoting Jack's sustainable high-quality Product S80 & X5H2: Digital intelligent total solution

and efficient growth. High-end sewing machines/hanger system/software/warehousing etc. December 19 2024 June 24 2024

H1: Single machine business Zhejiang Intellectual Property Association Design Zentrum Nordrhein Strategic approach Sewing machine cutting etc. Westfalen

Create hot products based on users create value

through innovation build a vertical and horizontal Intelligent garment manufacturing industry ecosystem

industry ecosystem and deeply serve global

customers

Basic business Growing business Future business

1314

UncertaintyESG

ESG ESG concept and management structure

ESG strategy While promoting the pursuit of economic benefits Jack also takes into account social responsibility and sustainable development. By identifying and evaluating the Company's business strategy key risks development opportunities relevant laws and regulations and

stakeholder needs and combining national policies and industry development directions we have formulated ESG strategic guidelines goals

and implementation paths.Maintain innovation vitality and lead a

sustainable future

Meet customer needs Protect employees' interests

Innovation vitality Green development Global public welfare Create customer value Fulfill employees' ideals

Efficient and low-carbon Filial Piety Sewing: Five Thousand

solutions to improve quality Achieve a 20% reduction Plan

reduce costs and increase in carbon emissions from Build an industrial community and

efficiency operation management promote the university-enterprise Product-based Green low-carbon and intelligent

Remote services based on AI Achieve a 20% reduction in integration Quality first Environmentally friendly

and IoT technologies carbon emissions per unit of Hold 2000 public welfare training

Build a training system for global output value sessions per year and provide

Overall employees Help core suppliers reduce free services to 10000 companies

objectives Develop new business and emissions by 15% Localized operation and cultural

of ESG create more development integration promoting global Promote co-creation and sharing

ESG Strategic Dedicated to social good

opportunities development

strategy Ensure a win-win situation for both

Guidelines

Fulfill social responsibilities

suppliers and demanders

Build an incorruptible culture Improve governance efficiency

Operate honestly and legally Protect shareholders' rights

Achieve steady development Improve investor relations

Sound corporate governance

The Board of Directors is the highest decision-making body for ESG matters of Jack

SDGs Board of Directors responsible for reviewing and supervising the Company's ESG strategy policies risks and

benchmarking target performance and controlling the Company's ESG strategic direction and ultimately

responsible for ESG matters.The Strategy and Sustainability Committee is consisted of members of the Board of

Strategy and Sustainability Directors led by the chairman mainly responsible for researching and making suggestions

Committee on the Company's long-term development strategy (long-term development plan business

strategy development policy major investment and financing and ESG-related matters)

Innovation

Key method Research Business Long-term

Ecological

chain Filial Piety Sewing and reviewing the Company's ESG strategy policies risks and target performance etc.Institute School investment construction Foundation

The ESG Working Group is composed of the rotating executive president president of the

ESG Working Group R&D Team president of the Marketing Team president of the Supply Chain Team president of

Human Resources president of Finance president of Strategy and Investment Management

Capability ESG information Department etc. responsible for promoting and coordinating the Company's ESG work ESG system ESG data management

support disclosure identifying ESG risks and topics and reviewing and evaluating ESG work reports.ESG management framework

15 16ESG

ESG-related honors ESG risk management ESG performance and remuneration of senior officers ESG training

The Company a t taches great The Company has incorporated ESG The Company holds ESG training

importance to the significant impact performance into the performance from time to time to interpret ESG

that ESG risks may bring and has evaluation indicators for senior development trends and excellent

incorporated ESG management officers mainly including work practices and implement ESG in all

into the Company's overall risk safety (including but not limited to relevant positions. Through various

assessment and management safety accidents and safety penalty means such as internal employee

system. The Company regularly incidents) environmental protection training corporate culture building

assesses important ESG topics (including but not limited to pollutant and exchange and learning of

and reports them to the Board of emiss ions energy e f f i c iency industrial excellent practices the

Directors for review. The Board management and environmental Company will continue to create

o f D i r e c t o r s d i s c u s s e s a n d penalties) anti-corruption legal a corporate culture of sustainable

Wind ESG "AA" rating in Selected as an excellent practice case of sustainable development of determines the Company's ESG and compliant operations and risk development and enhance ESG

2024 listed companies in 2024 by China Association for Public Companies risks and opportunities regards the management etc. such as the one- management capabilities.

management and improvement of vote veto system for work safety

important topics as key ESG tasks and the review and adjustment of

and incorporates them into the performance assessment results

Company's overall strategic planning. and performance-based annual

salary by members of the Major

Accident Management Decision

Commit tee (EMT) etc. In the

future the Company will continue to

improve the sustainable development

performance evaluation mechanism

and strengthen the implementation of

ESG Value Delivery Award for Listed Global 100 ESG Classic Cases of the sustainable development strategy

Companies in 2024 Zhejiang Enterprises in 2024 thereby ensuring the smooth and

healthy operation of the Company and

achieving sustainable development.

17 18ESG

Substantive topic analysis Stakeholder identification and communication

In order to further understand the expectations and requirements of stakeholders and guide the implementation of daily environmental social Jack attaches great importance to communication and exchanges with internal and external stakeholders of the Company conducts dialogues

and governance work the Company actively invites stakeholders to participate in the assessment of substantive topics sorts out topics that with stakeholders through various channels deeply understands the demands and expectations of stakeholders strives for their trust and

are important to the Company's business and stakeholders and discloses them in detail in the report. support and promotes the continuous improvement of social responsibility management.Substantive topic analysis process

Stakeholder Expectations and demands Communication and response

Topic identification Stakeholder research Comprehensive analysis Employee remuneration and benefits Equality and diverse hiring

and screening of results Employee training and development Protect employees’ rights and interests

Occupational health and safety Perfect salary system

Based on the national macro-policy Communicate with internal and Based on the research results Employees Employee care and motivation Smooth promotion system

orientation domestic and overseas external stakeholders of the Company conduct statistical analysis on the

research on social responsibility through online questionnaires. scores of the topics adjust the

Rich employee activities

standards annual hot topics industry substantive topics based on the Perfect health and safety system

trends rating concerns and the The 2024 stakeholder research opinions of internal management

Company's actual development covers stakeholders including and external experts conf i rm Supplier management Responsible sourcing

identify substantive topics that have a employees customers investors the importance ranking form a Dealer management Supply chain management

significant impact on the Company's suppliers partners communities and substantive topic matrix and respond Industry development Sunshine procurement

own development and stakeholders. the public. in a focused manner to the topics of Partners University-enterprise cooperation Win-win cooperation with dealers

concern to stakeholders in the report. Industry cooperation and exchange

Industry-university-research cooperation

Substantive topic matrix Product R&D and innovation Technological innovation

Product quality and safety Digital and intelligent transformation

High Customers' rights and interests Quality assurance1 Combating climate change Customers protectionData security and privacy Customer feedback handling

5 2 Reducing carbon emissions

protection Customer satisfaction survey

Timely and professional service Information security management

2 3 Establishment of environmental

4 management system

Waste and pollution Stable performance growth Compliant operation

24 4 management

3 23 10 Shareholders' rights and interests Comprehensive risk management15 6 5 Energy/resource conservation protection16 8 and renewable energy utilization Regular and ad interim information

12 9 Shareholders Transparent information disclosure disclosure7

2017226

Green office Complete risk control and compliance Smooth investor communication

18 14 19 channels

11 7 Promotion of environmental 1 protection concept Intellectual property protection

2930

28273233

21

13 31 8 Development of green products34

25 Compliance with regulatory requirements Compliance with laws and regulations26

9 Research and development and application of clean technology Responding to national development Cooperation in regulatory inspections

policies

Employee equality and diverse Regular and ad interim information Low Financial importance High 10 hiring Government and Business ethics and anti-corruption disclosureregulatory authorities

Complete risk control and compliance Strengthening publicity of integrity in

Employee training professional practice and self-discipline

11 Employment of highly Responsible Risk control and educated/professional talents 16 and development 21 Rural revitalization 26 sourcing 31 internal control Comprehensive risk management

12 Employee communication and

Intellectual

democratic management 17

Occupational health

and safety 22 Product quality and safety 27

Supply chain

management 32 property

protection Social and public welfare undertakings Volunteer activities

13 Anti-discrimination forced 18 Industry cooperation Corporate labor harassment and abuse and exchange 23 R&D and innovation 28 governance 33 ESG management Rural revitalization Charitable donations

Community and the Common prosperity Starlink Cloud alliance

14 Employee engagement and 19 Industry-university- 24 Digital and intelligent 29 Compliant 34 Party building publicsatisfaction research cooperation transformation operation leadership

15 Employee care and motivation 20 Social and public Protection of customers Business ethics and welfare undertakings 25 and consumers' rights and 30 anti-corruption

interests

1920

Impact importanceESG

Contribution to SDGs

Upholding the concept of openness and cooperation the Company actively participates in exchanges and cooperation with various industry

the Company continuously carries out charity activities to return benefits to society. With a persistent pursuit for forging an influential brand with associations. By participating in various activities of industry associations the Company not only has an in-depth grasp of industry development

public welfare concern it actively practices corporate social responsibility and shares development results with the community. trends but also explores cooperation opportunities with other companies bringing new vitality to the development of the industry.The Company is convinced that adhering to business ethics is the cornerstone of the Company's long-term

Jack Shares adheres to the concept of "contributing to common prosperity" and plays a positive role in rural development and the key to winning the trust of customers employees and society. The Company upholds the

revitalization. It empowers rural development through industrial support consumer assistance poverty principles of integrity fairness accountability and transparency establishing a strong reputation in the fiercely

alleviation donations and other means. competitive market and driving sustainable societal development.Jack Technology actively practiced its corporate social responsibility in biodiversity conservation and

minimized the impact of production activities on the ecological environment through technological

innovation and scientific management. The Company strictly abode by relevant laws and regulations

on ecological protection paid attention to ecological balance in project development and operation

The Company consistently adheres to a people-oriented approach prioritizing and avoided damage to natural habitats.employees' occupational health psychological well-being and life welfare while

safeguarding their democratic rights. The Company managed wastewater discharge in compliance with regulations installed water

meters in each workshop to implement daily water consumption measurement controlled

sewage treatment and invested in the construction of sewage treatment stations to separate

rainwater and sewage ensuring that sewage discharge complied with local water pollution

prevention and control regulations and wastewater pollution to the environment was reduced.The Company has established a "Business School" to implement the concept of

"using the best people to train better people" and focus on business operations to In response to the country's "dual carbon policy" Jack Technology formulated and

replicate and promote successful experience. Additionally a business school training- implemented climate change response plans and climate transformation plans to

to-action plan was formulated to provide all employees with training programs from meet the challenges of climate change striving to achieve carbon neutrality by 2060

induction to various development stages. based on its energy use carbon emissions status and strategic development plans.The Company continued to contribute to global climate governance by practicing the

concept of energy conservation and emission reduction promoting the application of

clean technologies and improving resource utilization efficiency.The Company upholds the concept of diversity equity and inclusiveness in strict

compliance with the Law of the People's Republic of China on the Protection of The Company has established a strict quality management system to ensure that all

Women's Rights and Interests prohibiting discrimination based on gender age employees take "doing things right the first time" as the principle in their daily work and

education ethnicity religion or physical condition. All employees are guaranteed strive for excellence in every link from design production to service striving for zero-

equal employment and career development opportunities. defect delivery. The Company regards quality not only as the lifeline of its products

but also as an important part of its core competitiveness. The Company is committed

to providing customers with excellent product experience and long-term value and

continuously promoting the improvement of industry quality standards.Attaching importance to water resource management the Company implemented the

water-saving concept of multiple uses and recycling of water formulated the Management

Regulations for Rational Use of Water took a number of measures to reduce water resource Jack Technology adopted green and low-carbon development as its core strategy

consumption and comprehensively promoted the efficient management and recycling of leveraging technological innovation systematic equipment upgrades and green initiatives to

water resources. advance the R&D and application of carbon reduction technologies. By optimizing resource

efficiency and reducing carbon emissions the Company provided innovative sustainability

solutions reinforcing its leadership and commitment to the green transition while supporting

China's carbon peak and carbon neutrality goals.The Company has always regarded energy conservation and emission reduction as an important measure for

sustainable development and has comprehensively promoted efficient resource utilization and environmental

protection through technological innovation equipment upgrades and green energy applications. In the process Attaching importance to the employment of persons with disabilities the Company has launched the "Sunshine

of environmental protection practice the Company actively adopted non-toxic and harmless green raw materials Home" initiative providing dedicated positions and barrier-free facilities to ensure workplace accessibility and

and environmentally friendly new materials broke through key technologies and promoted green design. At the equal benefits for employees with disabilities. In addition the Company has provided special care for pregnant

same time the Company used smart equipment and intelligent connection solutions to improve the production employees adjusted work arrangements and optimized the working environment to ensure their health and safety

efficiency of downstream industries reduced resource waste striving to achieve a win-win situation of economic during pregnancy. Through these initiatives the Company aims at creating an equal respectful and inclusive

and environmental benefits. working environment for every employee fulfilling its social responsibility and promoting harmonious development.Guided by its value-creation paradigm the Company is committed to building a comprehensive and efficient incentive system. Through scientific

compensation management and performance evaluation mechanisms the Company continuously optimizes its talent structure achieving With the focus of "innovating the future through innovation" as its core and the R&D concept of "insisting on innovation-driven and creating high-quality

synchronous growth between individual careers and organizational objectives. Equity incentives closely align employees' interests with the hot products" Jack has built a R&D system with a high strategic level.Company's long-term development enhancing their sense of belonging and responsibility.

21 22Special Topics: Promote the hot product strategy Activate new quality productive forces in intelligent garment manufacturing

Win the market position of "No.1 in Global Sales for 14 Consecutive Years"

Special topics

Promote the hot product strategy and activate new On October 16 2024 witnessed by overseas dealers around the world and with the authoritative certification of Frost & Sullivan the President of Human Resources

quality productive forces in intelligent garment of Jack and the Executive Director of Frost & Sullivan China held a certification ceremony for "No.1 in Global Sales".manufacturing Source from: Frost & Sullivan completed the survey in September 2024 at the annual

number of industrial sewing machines sold by major industrial sewing machine

In the wave of intelligent and digital transformation of the garment industry Jack continued to inject new quality productive forces into the enterprises in the world between 2010 and 2023.industry with its forward-looking strategic layout and technological innovation. In 2024 the Company continued the upgrades for its product

matrix through the "Hot Product Strategy". While consolidating the market leading position of "A.M.H" (hot product in 2023) the Company

innovatively launched "Urus" hot product which not only solved the industry's pain point of "Small Order Quick Response" but also promoted No.1 in global sales for 14

the transformation and upgrading of the garment industry from traditional manufacturing to intelligent manufacturing helping customers consecutive years

maximize their values. In the future Jack will continue to uphold the innovation-driven development concept promote the garment industry to

a higher level of intelligent manufacturing and make contribution to the sustainable development of the industry.Hot product strategy: activate new quality

productive forces in the garment industry

"A.M.H": small order quick response leading the market trend "Urus": Full speed cross seam improving production efficiency

"A.M.H" is an intel l igent production In the garment production under the mode

equipment launched by the Company of "small order quick response" fabric knots

after 5 years of research and development restrict efficiency and quality. The Company

and an investment of over RMB 100 launched the "Urus" intelligent overlocker

million to meet the rapid response needs after 4 years of cooperation with top scientific

of the garment industry. With the AMH research forces. It has an AI full-speed feeding

fabric adaptive system it can accurately system and two core technologies: Presser

identify fabrics and adjust parameters in Foot Transformer and Smart Rhino Feeding

real time; with the Nine-Brain Octopus AI supporting implementation of instructions based

chip it achieves microsecond response on the calculation parameters. The pressing

and seamlessly switches sewing; with the force could be adjusted instantly and the feeding

powerful PowerApe motor it achieves a force could be accurately outputted according

comprehensive torque of up to 8.4 Nm to the different extreme characteristics of fabrics

through high torque density technology and such as thick thin elastic and stiff. The product

copes with complex sewing in combination achieved great success once it was launched.with through-axis technology. It realizes It effectively solved the problems of cross

the adaptability of small-order flexible and seam improving efficiency reducing costs and

quick response and significantly shortens leading the intelligent transformation of garment

the production delivery cycle. Since its production.launch "A.M.H" has successfully helped

many garment enterprises realize the

transformation from traditional manufacturing

to intelligent manufacturing becoming

a benchmark product for the industry's

intelligent transformation.

23 24Special Topics: Promote the hot product strategy Activate new quality productive forces in intelligent garment manufacturing

Urus' world record for the longest continuous sewing of multiple fabrics without thread breakage cross seam and machine stoppage. Case: Global New Product Launch Event under the Theme of "To Be the King of Cross Seam"

On November 27 2024 under global attention and the strict supervision of the Forbes World Record Certification (FWRC) On June 16 2024 Jack held a global new product launch event under the theme of "To Be the King of Cross Seam" at the

Jack's "Urus" continuously sewed 1001.98 meters of extreme fabrics setting a world record for the longest continuous sewing Guangzhou Chimelong International Exhibition Center with more than 30 parallel venues in China Cambodia Vietnam and

of multiple fabrics without thread breakage cross seam and machine stoppage. other countries. The live event attracted more than 1000 representatives from garment enterprises more than 100 global

media and nearly 5 million online viewers.At the event the Company launched the "Urus" intelligent overlocker marking the in-depth application of AI technology in

the field of sewing equipment. In order to overcome the problems of traditional overlockers in processing mixed fabrics such

as jamming and needle breakage Jack finally successfully launched "Urus" after 4 years of R&D under cooperation with top

universities such as Stanford University Chinese Academy of Sciences Tsinghua University and Zhejiang University.During the live demonstration "Urus" seamlessly handled thick thin elastic and stiff fabrics without speed reduction even

when transitioning between materials with 100x thickness variations which garnered enthusiastic acclaim from attendees.The order amount exceeded RMB 480 million within 5 hours after product launch underscoring Jack's innovation strength and

market influence in the sewing equipment field. Finally the product launch event was reported by more than 30 media including

Xinhua Net People's Daily app and Guangming Online hailing "Urus" for empowering new quality productive forces."Urus" set a world record for continuous sewing by overlocker

Global launch of "Urus"

25 26Create quality with craftsmanship and empower society with technological innovation

R&D innovation driven Management system and policy

With the focus of "innovating the future through innovation" as its core and the R&D concept of "insisting on innovation-driven and

creating high-quality hot products" Jack has built a R&D system with a high strategic level. The Company is determined to increase The Company has established a complete R&D management structure and system to support the implementation of its innovation-driven

its investment in innovation. The Company spends more than 7% of its sales revenue on R&D each year and plans to increase this development strategy. The Company has built a global R&D network with established 14 R&D centers covering multiple countries and

proportion to 10% in the next 3-5 years fully demonstrating the Company's high attention and long-term commitment to technological regions including China Germany and Italy and proposed innovation centers in Europe the United States and Japan forming a R&D pattern

innovation. In 2024 the Company achieved a number of technological breakthroughs in the field of intelligent sewing equipment and featuring "global collaboration and resource sharing".launched revolutionary products such as Urus bomber 5000 template machine M5/M9 hanger system Q7/V7 and auto-cutter S80/

F80 etc. which significantly improved production efficiency and industry competitiveness. Based on a R&D model featuring global perspective multi-professional integration and multi-field collaboration the Company promotes

customer-centric product innovation. Through joint innovation with world-class customers major universities around the world and world-

renowned technology-based enterprises the Company accurately defines product needs and enables SP planning and CBB construction.Key performance Meanwhile the Company builds a deeply interlocking system of technology and products to achieve a high degree of adaptation between

product approval and development processes increases talent and technology investment in the fields of automation and AI and fully

As at the end of the reporting period integrates AI software controllers and machinery through independent R&D and external cooperation to create a triathlon that Jack controls

independently. The Company continuously innovates new categories redefines rules solves users' pain points creates greater value for

the Company had a total of Including: invention patents of Utility model patents of Design patents of customers promotes the development of garment manufacturing towards small orders and unmanned operations and enhances Jack's

overall competitive advantage.

2705 patents 1125 1334 246 Relying on the IPD system the Company deeply connects the product competitiveness shaping and market-oriented operation and builds

a close coordination mechanism. With the help of a unique hot product development model the Company effectively integrates innovation

insight methodology Sany value model and other tools to accurately identify and effectively solve customers' core pain points.Total number of software Number of invention patents Number of R&D personnel R&D investment amount

copyrights applied to primary business The Company develops a new generation of product life-cycle management PLM system in depth and builds a unified R&D data platform to

549 498 1289 487.99 effectively integrate and manage the entire process data of products from demand planning conceptual design detailed design production million and manufacturing sales after-sales service to final delisting. By measuring and evaluating the indicators of R&D process management from

demand to planning technology to finished product development the Company ensures the controlled design and development process the

advanced product technology and the reliable quality and creates leading technology and hot products.R&D strategy and planning Through a complete R&D management system and innovation mechanism the Company has not only achieved efficient transformation of

technological achievements but also continued to lead industrial technological innovation and provided intelligent and digital solutions for

Jack insists on long-term investment in innovation. The Company invests more than 7% of sales revenue in R&D every year and will increase global customers.this proportion to 10% in the next 3-5 years under the "433" strategy of which 40% will be used for development generation 30% for pre-

research generation and 30% for exploration generation. The investment in the exploration generation will increase by 0.5%-1% of the

revenue mainly used for humanoid robots AI digital production lines and other areas. This strategy not only promotes the continuous iteration

and upgrading of existing products but also lays a solid foundation for the disruptive innovation of future technologies and the reconstruction of

the industrial ecosystem injecting strong impetus into the intelligent and digital transformation of the global manufacturing industry.Development generation Pre-research generation Exploration generation

Product Team

New trends in the garment industry New trends in garment New production trends + industry

Quick response and adaptation rise production AI flexible quick changes

of technological fabrics response (de-skilling) Less manned unmanned&digital intelligent

Flagship hot automatic

machine products Fully Machine

electronic

Three- Focus Two flagship hot produtcts Modular

in lieu of

people +

on hot + digital

generation automatic products A.M.H Urus adjustment Al large production

product strategy modelOther hot products lines

Before sewing + during sewing + AI empowerment of production

after sewing lines Universal IoT

Intelligent Future

total Intelligent logistics

Intelligent Master AI auto-cutter and production line

Digital Data analysis total human spread machine

solution management Lean for efficiency solution experience AI single machine + Metaverse

Digital twin

AI hanger system

1.0 improvement 2.0 factory

Software: connect front-end Software: AI large model Production simulation

mid-end and back-end data application

Ultimate goal Let 120 million garment workers around the world work easily and happily!

Develop the third-generation product strategy

2930

COE Room

Technological Innovation Management

Department

Expert Room

Motor and Pilot Test Platform Department

Technology Platform Department

Economical Auto-cutter Product Line

Frameless Torque Motor Product Line

Intelligent Warehousing Product Line

Special Machine Electronic Control

Product Line

Basic Machine Product Line

Intelligent Hang system Product Line

High-end Product Line

Special Machine Product Line

Automatic Machine Product Line

Heavy duty Product Line

Interlock Product Line

Overlock Product Line

Lockstitch Product Line

Product Strategy Marketing DepartmentCreate quality with craftsmanship and empower society with technological innovation

R&D innovation incentive mechanism

The Company has always been committed to creating a scientific

and diversified incentive mechanism for R&D personnel to fully

stimulate their enthusiasm and creativity. Under the framework

German R&D Wuhan R&D

Center of the "comprehensive incentive 3+3 system" the Company Center

has continuously improved its incentive system. This year the

Company took an important step to incorporate value evaluation

Italy Maica R&D Center

Anhui R&D Hefei R&D into the assessment system instructing R&D personnel to focus

Center Center

Italy Vibemac R&D Center not only on technological innovation but also on alignment with

the Company's core values and promoting synchronized growth

resonance.Beijing R&D

Jiangxi R&D Center

Center

Shanghai R&D

Center Hangzhou R&D Management measures for patent incentives

Center

Xi'an R&D Center

Taizhou R&D Center

Aim to encourage the application for patent rights of innovative achievements improve the quality of invention patents promote the

Guangzhou implementation and application of invention patents and motivate employees to actively apply for patents

R&D Center

Linhai R&D Center

Technology development project award

Layout of R&D center

Aim to encourage R&D personnel to make positive contributions in the process of technology project R&D and mobilize the

enthusiasm and creativity of all R&D personnel

Commercial success reward system for product development

Aim to motivate the work enthusiasm of members of the product development project team encourage outstanding personnel to

grow quickly and promote the rapid development of the Company

Flagship project award

Aim to stimulate the enthusiasm and sense of urgency of the team expedite the capture of strategic flagships seize the initiative

promote the achievement of the Company's strategic goals and enhance the cohesion and combat effectiveness of the team

Innovation incentive system

31 32Create quality with craftsmanship and empower society with technological innovation

Intellectual property protection Key performance Core technology Technical advantages

The Company established a complete intellectual property policy Able to quickly sense fabric changes and adjust the coordination between feeding force

system including the Implementation Rules of Patents the Management AMH fabric adaptive technology and puncture force in real time adaptive to fabrics and the world's first system that can continuously sew different fabrics without adjusting the machine

Measures for Patent Incentives the Intellectual Property Emergency

Response System and the Management Measures for Technical Secrets

to ensure standardized and systematized intellectual property work.The Company established a dedicated Intellectual Property Department Nine-brain Octopus AI chip

With intelligent AI algorithm able to achieve intelligent perception and real-time response

technology for different fabrics such as thick thin and elastic through multi-task parallel update

with 9 full-time employees fully responsible for patent mining retrieval calculations up to 10000 times per second

review application analysis and avoidance and held annual intellectual

property training to continuously enhance employees' intellectual property

awareness and professional capabilities. In addition the Company Presser Foot Transformer Solve core pain points of customers such as needle breakage over seam skip stitch and technology stitch crowding

obtained the intellectual property management system certification

and further strengthened the standardization and internationalization Intellectual Property Management System Certification

of intellectual property management providing solid guarantees for the Has the combined torque as high as 9.2N.m and the precision of the feeding force

protection and transformation of technological innovations. controlled at 0.01N.m; like a sports car with excellent performance whether it is straight-

Smart Rhino Feeding technology line acceleration or corner overtaking able to match the optimal power output ensuring

accurate output of the feeding force according to the needs of the seam position at every 1

degree of 360 degrees

Comply with scientific ethics

Able to perform multi-modal intelligent detection at a speed of 32000 times per second

and calculate the best pressure-feed ratio once the fabric changes slightly

The Company's R&D activities do not involve artificial intelligence ethics biotechnology or environmentally sensitive areas and all AI full speed feeding system Through Presser Foot Transformer output the precise pressing force and effectively

cooperate with Smart Rhino Feeding technology to output the precise feeding force

technological improvements are centered around improving the production efficiency and sustainable development capabilities of the garment achieving full speed cross seam

industry. The Company practices corporate social responsibility with a pragmatic and innovative attitude.The Company fully understands that technological development must follow ethical principles so the Company will uphold correct

technological ethics to ensure that R&D activities are in line with human interests and values. Relying on thread quantity model simulation and by optimizing the motion coordination of

each mechanism able to accurately control the movement state and tightness changes of

0 degree line technology stitches minimizing sewing defects such as thread breakage and skipped stitches By using

nano coating able to reduce line resistance by 30% and enhance wear resistance and

rust resistance

Through multi-axis interpolation and precise positioning ensure cutting accuracy

Through HSC high-speed cutting technology fast positioning and sharpening technology

Metis control technology optimized control logic and other technologies achieve ultra-high-speed cutting Through

microsecond-level ultra-high-speed response ensure precise execution of the control

system

With the ultra-short thread tail technology able to achieve ultra-short thread ends by

reducing the distance from the needle plate to the bottom shear which solves the pain

Short thread tail technology point of customers that the thread ends of high-end garment from straight buttonhole

machines need to be repaired twice improves garment production efficiency and meets

the needs of high-quality shirt sewing

Bottom thread detection With the bottom thread detection technology sense the bottom line capacity through the

technology sensor and replace the bobbin in time; able to avoid sewing failures caused by insufficient bottom line margin and improve sewing quality and efficiency

The DCP intelligent pressure sensing device amplifies the change in fabric thickness

DCP intelligent pressure sensing through a mechanical device during sewing senses it through a sensor and automatically

technology reduces the speed of the spindle motor at the time of approaching a seam ensuring

perfect stitches at the cross crotch

33 34Create quality with craftsmanship and empower society with technological innovation

Products Products Ensure product quality

Jack takes "zero defect - meeting customer requirements and doing the right things right the first time" as the core policy of quality

management and fully implements the four basic principles of zero defect. The Company has established a strict quality management system

A.M.H Urus to ensure that all employees take "doing things right the first time" as the principle in their daily work and strive for excellence in every link from

Non-stop sewing of Full speed cross design production to service striving for zero-defect delivery. The Company regards quality not only as the lifeline of its products but also as

100 styles daily seam an important part of its core competitiveness. The Company is committed to providing customers with excellent product experience and long-

term value and continuously promoting the improvement of industry quality standards.Products Products

Quality means meeting requirements The working principle is zero defect

Template

machine M5 Template Prevention creates quality Quality is measured with value

Flexible intelligent machine M9

manufacturing

assembly line

revolution

Four basic principles of zero defect

Products Products

Key performance

Ironing table Interlock During the reporting period

L5 K7 the Company's product The number of major quality The product recall rate

A new benchmark

New intelligent percent of pass reached incidents in the year was was

for green intelligent

sewing technology

manufacturing 99.43% 0 0.039%

Products Products

Hanger Auto-cutter

system Q7 S80

Enhanced efficiency in

style changeover and Precision cutting

throughput increase technology

Innovative product matrix for Intelligent sewing equipment IS09001 Quality Management System Certification CCC Certification

35 36Create quality with craftsmanship and empower society with technological innovation

Major honors Management system and policy

During the reporting period the Company participated

in the quality management innovation activity The Company adhered to the customer-oriented principle gained a deep insight into customers' expectations for product quality strictly

organized by the China National Light Industry implemented internal regulations such as the End-to-End Quality Management Process the Full Manufacturing Quality Management Process

Council and was awarded the title of "National the Management Regulations on Quality Red Line and the Non-conformity Control Management System and continuously optimized the

Excellent Quality Manager in Light Industry" for one closed-loop management mechanism for quality issues to ensure continuous improvement in product quality. The Company set up a "Chief

person the title of "National Trustworthy Team for Quality Officer" implemented a "one-vote veto system for quality and safety" incorporated quality and safety performance into the assessment

Quality in Light Industry" for one team and the title system for the Company's senior management and established quality and safety KPIs at the workshop and job levels to achieve a deep

of "National Excellent Quality Management Team in binding of quality and safety with economic benefits and form a quality culture with the participation of all employees.Light Industry" for two teams.At the same time the Company's Quality Process IT Department consisted of the Quality System Department the Process IT Department

The Company participated in Taizhou City's 2024 and the Quality Management Department that work together to build a quality management system covering the entire process ensuring the

Quality Innovation Achievement Release Conference systematic standardized and efficient quality management and providing a solid guarantee for the Company to create high-quality products.and QC Group and Advanced Quality Method

Application Competition and won the First Award

for QC Group Achievement Release with the Error List of winners in the evaluation and selection of excellent

achievement report on quality improvement Quality red line managementReporting of Template Machine E225.In order to standardize the daily behavior of all employees strengthen quality management and enforce strict work discipline the Company

formulated Jack's ten quality principles ensuring the full implementation of the "customer-oriented" concept and instructing all employees to

pay attention to work quality and product quality. At the same time the principles require management staff at all levels to ensure no excuses

Management strategy and planning and proactive root cause ownership during the problem-solving process thereby increasing the enthusiasm timeliness and effectiveness of

problem solving.Jack takes "Eight Major Campaigns Three Strategic Theaters" as the implementation pathway comprehensively covering the eight modules Adhere to customer first and eliminate self- Adhere to the authenticity of data and

centeredness eliminate fraud

of R&D and design product quality quality tools process quality parts quality talent training service quality and quality digitization with a

focus on the three areas of R&D manufacturing and services. Through a systematic and refined quality management system the Company Adhere to the quality red line and avoid Adhere to root cause ownership and avoid

is committed to making the "Jack Brand" synonymous with industry quality and continuously promoting the high-quality development of the sacrificing quality for the sake of cost making excuses

Company.Adhere to repeated verification and eliminate Adhere to quick response and avoid

batch problems procrastination and delay

Jack's ten quality

Adhere to the strategy of high-

quality development to lead the Adhere to end-to-end quality

principles

Adhere to the construction of the Adhere to doing things right the first time and Adhere to quality benchmarking and avoid

development of the industry with management to create an zero-defect management system avoid rework and repair blind action

the comprehensive performance of experience that exceeds user to create brand advantages of Jack

products expectations Adhere to the one-vote veto and avoid Adhere to the sense of crisis and avoid

compromise and concession stagnation

Quality management planning

Ten quality principles

Quality management objectives

With the core concept of "adhering to end-to-end quality management to build Jack's high-quality brand" the Company has formulated a 3-5

year quality strategy plan clearly taking NPS (Net Promoter Score) and quality satisfaction as core quality goals and breaking them down step

by step to organizations and positions at all levels.Actual performance

Performance indicator

202220232024

NPS 45 48 49

Customer satisfaction 8.36 8.52 8.85

37 38Create quality with craftsmanship and empower society with technological innovation

Product quality improvement Complaints management measures

With systematic quality management as the core Jack created an all-round quality improvement system. By implementing quality risk control The Company strengthened quality complaints management through various measures to protect customer interests and enhance corporate

the Company identified and avoided potential risks in advance and at the same time promoted life-cycle quality management and achieved reputation. The Company formulated the Closed-Loop Quality Management Process requiring a rapid response to external customer

end-to-end quality monitoring from R&D to after-sales services. In addition the Company encouraged all employees to participate in quality complaints within 4 hours and realizing intelligent analysis through T-management and a digital cockpit. At the same time the process clarifies

improvement and consolidated its market competitiveness by carrying out QCC (quality control circle) activities. the closed-loop management by six steps namely root cause analysis measure execution effect confirmation standardization single-

point education and implementation confirmation to ensure that problems are effectively resolved. In addition the Company implemented

Full-process Carry out the same during the product development process to ensure the full implementation of quality hierarchical and graded management for major quality issues and established a system for reporting bad news directly to senior management

zero-defect standards. to speed up the handling of major customer complaints.process review

In 2024 the Company further upgraded the Jack's Product Recall System refining the recall process and implementation method and directly

Use quality tools such as DFMEA (Design Failure Mode and Effects Analysis) PFMEA (Process Failure Mode linking product quality performance with remuneration of senior officers to strengthen the quality responsibility awareness of all employees.Introduction and Effects Analysis) SPC (Statistical Process Control) and CP (Control Plan) to carry out quality planning

of the 16949 Through digital tool empowerment process optimization and management accountability mechanism the Company effectively protected the

process system and focus on quality prevention management to ensure stable quality performance at the time of mass rights and interests of consumers significantly improved the Company's quality management efficiency and brand credibility and set a quality

production. management benchmark for the industry.Electronic Carry out the same during the product development process to ensure the full implementation of quality

control quality

control upgrade standards. Quality Culture Construction

Quality risk Develop a Risk and Opportunity Response Plan and combine it with the risk and opportunity assessment

management analysis table to systematically manage quality risks. Through internal and external training "Quality Month" activities and other quality-related training the company builds a quality management

system with full participation deepens the concept of "zero defect" improves quality awareness and execution and builds corporate

Quality control of raw materials: competitiveness. At the same time the company extends quality culture training to suppliers to achieve coordinated quality improvement of the

whole industrial chain.Establish a physical and chemical laboratory to conduct material analysis and physical and chemical analysis

on each batch of raw materials. Case: Construction of Quality Training System

Life-cycle Require suppliers to provide a quality guarantee for each batch of raw materials.quality Quality control of production process: The Company systematically promoted the construction of a quality training system from both external and internal dimensions to

management

Establish process qualification conditions from six aspects: people machines materials technology comprehensively improve employees' quality management capabilities and deepen the concept of quality culture.environment and monitoring. Through a combination of external and internal training the Company built a team with high-quality awareness and professional

Set up 77 quality control points in the six manufacturing links to strictly control the quality of the production capabilities laying a solid foundation for continuously improving product quality and corporate competitiveness.process and ensure the quality stability of the product throughout its life cycle.Quality management measures

The Company specially set up a "training class" for new recruited college students to help them quickly

integrate into the Company's quality management system through a combination of theory and practice. At the

Case: QCC (Quality Control Circle) Activities - Stimulating the Vitality of All Employees in same time the Company's senior management led a series of special training including "Quality is Value"

Quality Improvement Internal "End-to-End Quality Management" "Zero-Defect Management" "PONC System Promotion" "Five Tools

training Application" and "8D Working Method" covering multiple levels from concept to practice. Through internal

training the Company not only improved the professional capabilities of employees but also built a quality

The Company conducts a QCC (Quality Control Circle) management atmosphere featuring full participation and shared responsibility.publication activity every quarter. As at 2024 the Company

successfully held 54 sessions. The Company held a total of

319 publications including 109 publications in 2024 achieving

economic benefits of approximately RMB 18 million. Through

QCC activities the Company created an atmosphere in which The Company actively organized grassroots managers to participate in the "Jianfeng Team Leader

management staff at the team leader level or above proactively Training Class" to enhance the leadership and execution capabilities of team leaders in quality

solve problems promoting continuous quality improvement. management through courses and practical training. Through external training the Company not only

introduced advanced industry experience but also further strengthened the quality awareness and External

problem-solving ability of the grassroots management team. training

Internal and External Quality Training

39 40Create quality with craftsmanship and empower society with technological innovation

Case: "Quality Month" Event -- Building a Zero-Defect Quality Culture Lead Customer

acquisition segmentation Quality Hot product Delivery timeline Inventory Predictive Efficient Smart Precision Precision enhancement creation Precision forecast guidance Precision maintenance service

operations marketing Business opportunity Secondary R&D Satisfaction delivery Progress Precision servicesales Fast launch

NPS Sales

cultivation improvement feedback promotion improvement improvement

To implement the company's "Zero-Defect Quality" development

strategy achieve steady improvement in product quality enhance

overall quality awareness among employees refine Jack Technology's Customer Dealer Supplier Product Raw material Employee AI-powered

quality culture strengthen quality execution at all levels and boost Tag data TDM tagging tagging tagging tagging tagging tagging

analysis for Digital Smart Smart R&D Business

system system system system system system BI intelligent marketing factory analysisdecision-making

market competitiveness the Company organized the "Quality Month"

Event in September 2024. Through diversified activities such as the Unified data Customer Distributor Marketing Quality Product Order Factory Procurement Financial Office

"Quality Exposure Exhibition" "Quality Knowledge Competition" "Zero- warehouse BW domain domain domain domain domain domain domain domain domain domain

Defect Debate Contest" "Defective Product Destruction Campaign"

"Improvement Project Implementation" and "Quality Management

Experience Sharing" the Company aimed to embed the principles of Integrated product Lead-to-cash Integrated supply Issue-to-resolution Connotation of the zero-defect quality culture

"quality management is everyone's responsibility" and "identify root development process process chain process process Industrial digitalization operation platform（IPD） （LTC） （ISC） （ITR）

cause through self-reflection" into the corporate ethos.Product digitalization Digital marketing Supply chain Service digital platform Production Procurement management management

platform (PLM/IPD) platform (CRM/DMS) digitalization platform

Device Inventory

(ITR) management management

(MOM/SRM) Quality Payroll

One "root cause":you are the root cause of all problems and the answer to all solutions; meanwhile you are both management managementDemand Customer Production Service Intelligent garment manufacturing IoT

the cause and the result management management planning requests

Platform

Production line

management Other applications

Project Event Production

management management implementation Service tickets

Two "in-depths":in-depth learning which requires to translate learning capabilities into productivity; in-depth GatewayProduct Inventory Digital Service Gateway Gateway

thinking which requires to break cognitive inertia and expand intellectual boundaries management management assembly records

Configuration Contract Quality Intelligent

management management traceability customer service

Three "musts":leaders must exemplify what they require employees to do; if employees struggle to meet IoT device unit I IoT device unit II IoT device unit III

CBB shelves Order Product Evaluation

standards leaders must provide support; if employees make errors leaders must make self-reflection management inventory management

Product Receivables Procurement Knowledge

management management plans database

IT infrastructure 5G network Cloud desktop Development platform Data desensitization Data assets 本地机房

IOT

Automated storage &

retrieval system

Digital construction architecture

Digital strategy

Major honors

The Company actively responded to the national digital

transformation strategy by establishing a digital management and

control system and building an integrated information management

platform to comprehensively optimize business processes. In terms

of information security the Company has obtained ISO 27001

Information Security Management System Certification. It has set

up a multi-layered protection mechanism encompassing front-end

access controls mid-end transmission encryption and back-end

storage safeguards to ensure all-round data security. In addition the

Company conducted regular information security training and risk

assessments to continuously elevate employee security awareness.This ensured dynamic optimization and efficient operation of the

information security management system providing a solid safety

foundation for the Company's digital transformation and supporting

sustainable business growth. ISO27001 Information Security Management System Certification

4142

Data assets Main value stream Digital platform

Data security system

Data management systemCreate quality with craftsmanship and empower society with technological innovation

Guided by the strategic objectives of "customer-oriented principle business growth incentive organizational efficiency enhancement and whole

industrial chain empowerment" the company has comprehensively established a digitization control system. On the production side the Company

optimized resource allocation and refined operations by collecting and analyzing real-time data thereby significantly improving product quality and Within 10 years

the Company expects to realize

capacity to ensure efficient delivery; In sales and marketing segments the Company leveraged digital marketing tools to gain in-depth customer a fully connected Digital Jack

needs precise target key consumer groups and quickly respond to market dynamics allowing the Company to tailor solutions for customers and driving business through data

improve customer satisfaction. In addition the Company used the digital office system to break down departmental barriers allowing efficient Within 5 years value from customers to Jack

cross-departmental collaboration and realizing improvement in organizational effectiveness and operating cost reduction. This approach not only through effective data value mining the Company expects

delivered exceptional customer experiences but also drove sustained business growth and value creation across the entire industrial chain. Within 3 years the Company expects to achieve to initially establish 4 digital

end-to-end digitalization of all standards

business processes centered

on customer value realization;

explore digital empowerment

across the industrial chain Build Industry Ecosystem 3.0

Customer- The Company continuously reviewed its 10 corporate-level L1 processes adhering to customer- Build Smart Operations 2.0

oriented oriented principle and insisting on modeling modularizing and digitizing business activities to Comprehensive Business

principle achieve "fostering capabilities within the organization" Digitalization 1.0

2024-20262027-20282029-2034

Business The Company persistently developed 3 core business processes namely IPD LTC and ITR Digitalization Implementation Roadmap

growth

support which enabled end-to-end client operations and secured business victories

The Company constantly built ISC strategic management financial management human

resources management and other functions and supporting processes and adhered to improve

Organizational 8. Decision support platform (BI)

efficiency efficiency through digitalization

improvement

The Company insisted on the "Iron Triangle" team structure composed of process experts

process BP and process owner ensuring effective implementation of strategies and operations

Customer

demands 1. R&D management platform PLM

Business The Company continued to build data standards establish data warehouses construct data

decision models and introduce BI digital platforms to support business decision-making

support

Customers Customers

Leads

Contracts 2. Marketing management platform 3. Production management

Whole DMS/CRM platform MOM

industrial The Company continued to build digital systems such as DMS supplier-oriented cloud MES and

chain PubLink and persisted in empowering the upstream and downstream industries with digitalization

empowerment

Issues

2. Service management platform

Global data The Company established international data transmission storage and processing capabilities

support and continued to build data security protection to ensure data security and compliance

4. Human

resources 5. Financial 6. Master data management integration and 7. Collaborative management office platform

platform HCM ERP IT governance

Process and digitalization strategy

Process Integration Relationship Diagram and System Framework

4344

Process digitalization

strategyCreate quality with craftsmanship and empower society with technological innovation

Data security management Non-data management All personnel are strictly D o c u m e n t s c o n t a i n i n g Important information and

center personnel are strictly prohibited from performing passwords must be stored and files must be properly kept

prohibited from entering the operations beyond their shall not be disclosed arbitrarily. to prevent loss or leakage.computer room's data center authority to avoid destruction Waste materials in the data

To strengthen information security management standardize data security operations enhance data protection capabilities and safeguard data without permission to prevent of the information system and Such documents must be center such as printed papers

security while advancing digital construction the Company established the Data Security Management Policy. The Policy encompasses full life- damage to hardware facilities the leakage of confidential promptly destroyed when no and magnetic storage must

cycle management of data security with explicit requirements for data backup management to ensure protection across all data processing and leakage of confidential information

longer needed be destroyed immediately

information

stages. In addition the Policy defined the specific requirements for organizational structure management content and data backup providing

systematic guidelines and standardized operational basis for data security management and laying a solid foundation for informatization

development.O f f l i n e m e d i a s t o r i n g Data requiring long-term A l l d e p a r t m e n t s m u s t

application systems or critical retention must be transferred conduct self-inspections

data are strictly forbidden to to new offline media within and corrective actions on

be lent out. If necessary for the old one's quality warranty data security management

Quality Process IT Committee work it is required to obtain period to prevent loss due to implementation at least once

approval from the first-level data failure every year

department's leader

Person in Charge of Process IT Data security management

Division of

responsibilities Backup content Backup methods Backup check

The IT Department The content shall Regular full System administrator

is responsible comprehensively backup shall check backup

for the backup cover application incremental status daily

inspection and system data critical backup and

supervision of network system differential backup If the backup fails

application system data and operating identify the cause

data and device environment The backup time is and perform a

configuration scheduled during manual backup

information Including the off-peak period

operating systems of business (such

The Archives application as 0:00 AM - 5:00

Office is software AM)

responsible for the system data

storage of offline application data

backup media and configuration

information

Data security Backup media System change backup Backup storage

Offline backup

storage management

Person in Charge Person in Charge Person in Charge Persons in charge Unauthorized Offline backup Before software At least two copies Establish backup

of Data Security in of Data Security of Data Security in of data security in

other functional disclosure media must installation of key system data file records Marketing Team in Product Team Supply Chain Team

departments lending or transfer be stored in a system upgrades shall be stored and archives

of backup data is location equipped or configuration with one in the data comprehensively

strictly prohibited with fireproof changes a center and another record the backup

heatproof snapshot or backup one in the disaster information

moisture-proof shall be performed recovery center;

dust-proof anti-

magnetic and anti- to ensure rapid at least one copy of

theft facilities recovery in case of other systems shall

failure be stored

Data Security Management Organizational Structure Data backup

45 46Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Excellent customer services

Exceptional customer service is a key driver in shaping the Company's brand image and strengthening market competitiveness. The Company

deepens its ITR service system based on a customer-oriented approach. In 2024 the Company consolidated social repair resources to establish

the "Expedited Rabbit" Club building a localized "Three Fast" service network; established a three-tier remote expert system to achieve "local

+ cloud" dual service guarantees; created a "Bad News Straight to the Management" mechanism where critical issues trigger recalls; continued Global customer service

to conduct third-party NPS surveys use data to drive continuous service optimization and comprehensively improve customer satisfaction and network

brand competitiveness.Global Global

Major honors marketplaces distributors

Continuous improvement of NPS

Management responsibilities Marketplace Overseas Expedited Rabbit Authorized

VOC Service strategy Customer service team business offices Club service outlets

Team & Organizational Management survey

Transformation and Process Management Global Customer Service

Measurement analysis and Advisory DepartmentResource management improvement

Human resources Capacity Customer satisfaction enhancement Customer voice Global Customer Technical measurement and analysis

IT and tools Knowledge TOPN improvement Support Department

management Satisfaction survey management

Issue solutions Global Intelligent Call

Acceptance CenterHandling Closure

Issue origin Solutions Result verification Global Customer Parts

Responsibility Progress Closed-loop

Service allocation follow-up follow-up

Service Department

Fast

Requests

Issue handling Internal improvements service Key Account Integrated

Marketing Products Supply chain Technical services Spare parts support Delivery Department

Five-Star After-Sales Service

Certification Key customer Bad news straight VOC analysis and voice to the Management management PONC analysis

Zero-defect

management Global end customers

ITR service system

Global customer service network

Services support brands and create customer value

Strategic goals Increase NPS by 2 points every year: building a service ecosystem combined with Innovation

Rapid Response Rate 100% Service marketing

Customers' rights and interests protection

Timeliness:build a three-in-one localized fast Service marketing model innovation:focus on

service system combining online-offline + predictive customer needs create the "Expedited Rabbit

service platform to achieve "Three Fast" (10-minute Club" to establish one-hour service circles which The Company adheres to a "customer rights first" principle establishing a closed-loop full-process service system; strictly enforces the "Three

response 1-hour onsite arrival 30-minute can save customers money time and hassle

Strategic resolution) Guarantees Policy" (warranty replacement refund); sets up a "straight to the Management" channel ensuring "24-hour decision-making

direction response" for customer issues and triggers "proactive recalls" for major quality issues; the Company continuously optimizes service through

Professionalism:excellent skills high-quality parts After-sales service: develop popular spare parts multi-channel complaint resolution and third-party surveys building a dual-metric evaluation system featuring "NPS + customer satisfaction".and satisfactory repairs promote global adoption of OEM parts advance

fast service value marketing and sustainable

Standard iza t ion :sys temat i c p rocesses service

standardized operations visible procedures

transparent pricing Product recall

Process digitalization: create omni-channel digital service processes (ITR global intelligent customer service etc.)

Support When a product defect meets the "recall mechanism" threshold the Quality Committee immediately issues a recall. The Product Team led the

Organization and talent: build a customer-oriented service organization and cultivate globalized youthful and rapid resolution for products followed by the Service Department's follow-up to form a closed loop and ensure customer satisfaction.versatile talent skilled in both service software and hardware.Customer service strategy

4950

Global Customer Service

Department

Customer satisfaction

Customer requestsServe the world through intelligent solution Help upgrade intelligent garment manufacturing

Customer Service Response Professional services

The Company has established a global service network achieving full coverage of 10-minute response times for customer requests. For major The Company is committed to building professional customer service launching the "Expedited Rabbit Club" to gather and empower social

quality issues the Company has launched the "Bad News Straight to the Management" mechanism with mid-to-senior management taking repair technicians. By enhancing their technical skills and establishing a collaborative support mechanism the Company provides customers

the lead providing solutions within 7 days and closing the loop within 30 days. Through global deployment and flattened decision-making with the "Three Fast" services featuring fast response fast on-site arrival and fast resolution. In addition the Company has established a three-

the Company has built a service closed-loop featuring "rapid response - efficient handling - continuous optimization" ensuring ongoing tier remote expert system leveraging industry experts to offer timely and precise remote guidance further expanding service coverage and

improvement in customer service experience. convenience.Key performance Case: "Expedited Rabbit Club" Launched Nationwide with "Three Fast" Services

Boosting Comprehensive Customer Experience Upgrade

During the reporting period the Company With a customer feedback

handled response rate of A first-time resolution rate of In 2024 the Company founded the "Expedited Rabbit Club" implementing a standardized service process of "10-minute response

55403 99.94% 98.2% 1-hour on-site arrival and 30-minute resolution". At the same time it launched a global skills competition training and certifying customer cases over 2000 repair technicians. Through the club and skills league the Company enhanced technicians' service capabilities and

professional level strengthening customers' perception of the "Three Fast" services.Severe directly sent to the Top Management for handling

issues

Major issues directly sent to the VP-level officers for handling

Significant issues directly sent to the LPDT for handling

Case: Technical Training + Remote Experts Continuously Empower Frontline Fast and

General issues handled by department managers Professional Services

Quality issue management by level

Service response

channels

7/24 Jack service hotline: 4008876858

Online customer

WeChat service account: Jack Fast Service service and AI

Agent Xiao Jie:

International service email: sales@chinajack.com

51 52Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Customer satisfaction survey Proactive service

The Company conducted ongoing customer satisfaction follow-ups via the Call Center while entrusting third-party consultants for NPS-specific

surveys to continuously gather improvement feedback optimize product and service experiences and systematically elevate customer The Company built an efficient service system centered on customer needs regularly organizing service activities to listen to customer

satisfaction. feedback and respond promptly. Through proactive on-site service inspections designated "Monthly Service Days" and other activities

potential issues were resolved preemptively. In addition the Company rapidly activated emergency protocols during unexpected events

providing immediate assistance to ensure sable operations of the customer business. Through continuously refined service systems and long-

Key performance term technical support the Company has earned customers' trust reinforcing customers' brand loyalty.During the reporting period the Company conducted 25 customer satisfaction surveys sent over 10000 Case: "Enhance Quality and Efficiency Customer Reward" Initiative Launched with Closed-loop

questionnaires with a 95% questionnaire return rate. The customer satisfaction rate reached 88.5%. Implementation from Skills Training to Process Breakthroughs

To address customers' challenges in complex manufacturing processes and talent recruitment we established a systematic training

program combining theoretical instruction hands-on demonstrations and on-site guidance to help employees quickly master core

skills. Through the "3+3+3 Global Process Inspection" Mode (3-day on-site diagnosis 3-day intensive sampling 3-day follow-up) the

Company effectively resolved customers' process bottlenecks.NPS Survey

In 2024 the company launched NPS surveys in China and India with overall NPS performance remaining consistently high.Customer Satisfaction Improvement

The company holds annual customer satisfaction meetings with cross-functional teams (e.g. Product Supply Chain) to discuss feedback and

set improvement goals. Regular analysis of quality feedback and complaint resolution ensures open issues are tracked and corrected. For

recurring issues dedicated meetings are held to drive cross-departmental corrective actions and full resolution.Case: Service Inspection: Proactive On-site Inspection and Maintenance to Ensure Worry-free

Production for Customers

The Company and dealer service teams conducted regular and proactive follow-ups with customers dynamically monitored

equipment operating conditions and proactively dispatched engineers to perform on-site inspections maintenance and repairs.Through fast and attentive services the Company ensured efficient and stable operations of the customers' equipment.

53 54Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Case: Disaster Response: Rapid Equipment Repair Enables Customers to

Resume Production Supply chain management

In August 2024 Liaoning Jianchang floods the Company immediately activated the emergency plan and dispatched a professional Sustainable development of the supply chain is critically important for the Company as it relates to resource stability operational resilience

team to the disaster area to check and repair equipment. The team checked and repaired nearly 1000 damaged devices within and market competitiveness. To mitigate supply chain risks and enhance management efficiency Jack Technology strictly controls supplier

5 days enabling customer to resume production rapidly. Concurrently the team provided maintenance guidance and improved onboarding improves evaluation mechanisms implements green procurement and strengthens environmental and social responsibility audits.

management level minimizing customers' losses with efficient service and earning customers' recognition. In 2024 through standardized management digital supervision and comprehensive reviews the Company ensured supply chain compliance

efficiency and sustainability achieving synergistic development of economic and environmental benefits.New supplier development and onboarding

To deepen strategic collaboration with suppliers and build a stable community of shared interests the Company revised and improved the

Supplier Management Regulations based on the Annual Supplier Conference and Strategic Supplier Meetings achieving standardized

management of supplier activities. Additionally the Company optimized the Supplier Onboarding Process established supplier onboarding

principles to ensure new suppliers meet the Company's standards. For new suppliers' onboarding the Company implemented a supplier

capability assessment mechanism and developed the Supplier System Assessment Checklist focusing on reviewing the electronic suppliers'

compliance of raw materials and the effectiveness of green materials to ensure compliance with green procurement policies and achieve

resource conservation and recycling. In 2024 100% of newly onboarded suppliers underwent audits.Key performance

During the reporting period a total of 57 new suppliers were certified of which 57 suppliers passed

environmental social quality and other sustainable development-related system certifications accounting for

Service accessibility 100% of total.With 8000+ channels across 170+ countries and a 20000+ member service team the Company operates over 30 self-built service offices

and has established a global knowledge base platform that integrates over 2000 operational guides and troubleshooting solutions. Combined Sustainable centralized procurement control model

with the three-level remote expert system and 1-minute remote video response the resolution rate reached 98%.The Company has established the Procurement Management Department fully responsible for supplier sourcing quality management cost

control and supplier ESG promotion. The Procurement Management Department ensures partners align with the Company's sustainable

development goals through a strict supplier screening mechanism while implementing a quality monitoring system to enhance supply chain

stability. In addition the department actively promotes suppliers to fulfill their ESG responsibilities encourages green production social

responsibility practices and compliance operations aiming to build an eco-friendly efficient and responsible procurement system and support

the Company's sustainability.Purchasing Management

Department

Organizational Structure of Procurement Management Division

5556

ESG Specialist

Position

General Procurement

Position

Equipment

Procurement Position

Cost Verification

Position

Cost-Optimized

Auto-cutter

Procurement

Department

High-end Procurement

Department

Procurement

Department II

Procurement

Department I

Supplier Management

DepartmentServe the world through intelligent solution Help upgrade intelligent garment manufacturing

To optimize supplier management the Company has established a standardized Supplier Evaluation Guidance and Elimination Process Supplier ESG

Documentation clearly defining the standardized procedures for supplier rating quality guidance and optimization & elimination while embedding

a risk management mechanism to identify and address potential risks. During evaluations the Company's SQE organizes a professional team to

conduct audits and guidance at suppliers' sites conducting comprehensive assessments of their overall capabilities with a focus on supply chain The company rigorously controls supplier access implements green procurement and conducts environmental and social audits to promote

quality delivery performance and compliance risks. Ultimately the Decision Committee determines whether to eliminate the suppliers based on sustainable supply chain development achieving a win-win outcome for both economic and environmental benefits. To ensure standardized

audit results and risk assessment reports ensuring efficient reliable and risk-controlled supply chain management. management the company adopts ISO 9001 and ISO 14001 standards and has established the "Jack Supplier Sustainable Development

Management Regulations."Additionally the company issues the "Stakeholder Notification Letter" to suppliers and relevant parties clearly defining

In accordance with the QSA Supplier Audit Standards Supplier Management Regulations and Supplier Delivery Audit Checklist and other relevant environmental management requirements.Through unannounced inspections the company ensures corrective actions are implementedguarante

regulations the Company has taken a series of measures to effectively control supplier risks. The Company further strengthens risk management eingenvironmental accountability. During supplier onboarding 100% of suppliers in 2024 signed the "Relevant Acknowledgment Letter."

capabilities by raising the review threshold for new suppliers establishing a digital management system and implementing a "one material multiple

sources" management strategy. The SQE members of the Company's Procurement Department conducts audits and evaluations on the environment

safety personnel and other aspects of suppliers based on the annual audit plan and temporary plans. Suppliers failing audits are terminated from further Key performance

cooperation. The implementation of these measures has significantly reduced supply chain risks and ensured stable business operations.During the reporting period

Supplier policies and

compliance risks 54 suppliers underwent social impact assessments.* Supplier policies and compliance requirements are incorporated into the QSA Supplier Audit Standards as one

of the audit criteria for new suppliers

* For existing suppliers the Company has formulated an annual supplier audit plan. Suppliers failing to meet 111suppliers underwent environmental protection

requirements will receive guidance and will be given a time frame for rectification. The Company will provide assessments.prioritized assistance or on-site guidance to suppliers failing to meet the standards after rectification. No suppliers were rejected due to non-compliance

* The Company has formulated the Supplier Delivery Audit Checklist based on the principle of "one material with environmental or social factors.multiple sources" to eliminate policy compliance risks

* The Company has established a digital system ensuring clear and transparent supplier information

Supplier Code of Conduct Signing

Supplier production

environment management risks

Localized Suppliers Supplier Environmental Awareness

* Supplier production environment management is incorporated into the QSA Supplier Audit Standards as one of

the audit criteria for new suppliers Goals Increase the proportion of local suppliers by 8%. Increase the proportion of suppliers with ISO 14001

* Supplier production environment management is also incorporated into the Relevant Notification Letter certification by 3%.regulations. The Company signs agreements with suppliers to make this as one of the qualification review

requirements for new suppliers

* A Supplier 14001 System Certificate is required as one of the conditions for onboarding new suppliers Promote local economic growth and social Enhance environmental awareness reduce

policies stability by forming strategic partnerships with pollution emissions and elevate the industry's

local suppliers. overall environmental standards.Supplier personnel

management risks

Under equal conditions localized suppliers

* Suppliers' employee welfare development channels and training programs are incorporated into the QSA designated as Annual Key Supplier Annual For compliant suppliers the company will

Supplier Audit Standards as one of the audit criteria for new suppliers. Excellent Supplier or Annual Strategic Supplier propose corrective actions. For those failing or

will receive priority support in "precision refusing to rectify issues that may lead to major

Commitments production" technical guidance and "5S" environmental pollution or safety incidents

initiatives to jointly optimize and develop the measures such as order reduction or supplier

supply chain. replacement will be enforced.Supplier logistics risks

* Suppliers are required to use standardized turnover boxes specified by Jack and the requirement has been

included in the Supplier Management Regulations.* When onboarding new suppliers the Company will sign a Relevant Notification Letter signed with the supplier In the reporting period the company had 243 Among the main suppliers held

and strictly conduct qualification review to prevent the impact on the environment and society caused by material main suppliers including 146 localized suppliers 243 103Completion

60% ISO 14001 certification ( ) a issues Status ( ). Compared to 2023 (56.5%) the 42.39% 4.39%increase from 2023 ( ).

* When onboarding new suppliers the Company will include the logistics risks in the QSA Supplier Audit localized supplier ratio increased by 3.5%. 38%

Standards as one of the audit requirements for new suppliers Supplier risk management countermeasures

Supplier Risk Management Measures Supplier Goals Policies and Commitments

57 58Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Quality pass rate

The products and related raw materials production processes and services provided by

01 suppliers shall comply (or strive to comply) with national local and industry environmental laws Assessment of the average quality

and regulations; reduce packaging materials while ensuring quality. pass rate of parts submitted for

inspection for the year

Supplier quality system and

For pollutants (wastewater waste gas solid waste noise etc.) that exceed the standard during Quality pass rate Timely delivery rateESG assessment

02 production activities or processes make plans and take measures to meet national or local

emission standards (with significant annual reductions until compliance is achieved). Assessment o f supp l ie rs Assessment of the average

based on their quality system a n n u a l s y s t e m o r d e r

raw mater ial procurement completion rate and downtime

and process environmental Dimensions for

During the production and construction process prioritize the use of low-pollution or pollution- a w a r e n e s s a n t i - f r a u d rating of star

03 free production processes production and construction equipment and advanced construction actions labor rights material and excellent methods. It is prohibited to use production processes or production and construction equipment that environmental protection and suppliers

have been banned by the state or local authorities. During the construction process take necessary other dimensions

measures to reduce noise pollution and properly handle the waste at the construction site. de Pv re o

l d

e

o u vi

c e

c er an

c

Flammable explosive or toxic materials must be stored properly. Strictly observe relevant pm t S me rrfo

national laws regulations and standards and take preventive measures to ensure that Product development nt pe Service performance

04 practitioners possess required qualifications and professional skills to prevent accidents such as

fire explosion or leakage during storage and transportation and to avoid environmental pollution Assessment of the suppliers' timeliness in The Company's scoring on service

and safety accidents. the development of new parts performance of suppliers

Notification Letter to Relevant Parties Case: 2024 Supplier Conference deepening strategic cooperation to

empower high-quality development of the supply chain

Case: Building an Industrial Park Ecosystem to Drive Regional Economic Prosperity In October 2024 the Company organized a supplier conference to discuss the

optimization and innovation of supply chain management with supplier representatives.A total of 213 suppliers nationwide attended the conference. The conference focused on

The Company established a supplier industrial park to optimize deepening strategic exchanges and cooperation in five dimensions: supplier ESG system

supplier management. By concentrating suppliers within the quality delivery service and new products. The conference promoted improvement of

industrial park it effectively reduced transportation costs for raw suppliers' capabilities in technology quality delivery and other processes. At the same

materials and components and facilitated close collaboration in time it emphasized the improvement of suppliers' ESG management capabilities in

areas such as production planning and inventory management. green production labor rights compliance and anti-corruption management etc. jointly

This aimed to ensure product quality facilitate quality monitoring promoting the sustainable development of both parties and laying the foundation for

achieve unified quality standards promote innovation and building a stable and efficient supply chain system.technology exchanges accelerate technology sharing promote

joint R&D and enable mutual support and common development

among suppliers thereby building a more stable business

network for the Company and jointly promoting the prosperity and

development of the regional economy. Digital empowerment of suppliers

Upholding the concept of "long-term cooperation mutual benefit and

win-win results" and taking the SRM (supplier relationship management)

Key performance system as the core the Company comprehensively promotes the digital

empowerment of suppliers. By building delivery collaboration modules

During the reporting period the suppliers systematically advanced quality management training quality awareness such as supplier admission and exit supplier evaluation delivery return

and quality inspection the Company has achieved digital management

promotion and quality counseling. Over 50 on-site supplier training sessions were conducted annually alongside of the entire supplier life cycle. This system not only improves the

more than 2 large-scale supplier training programs 3 supplier study and research activities and 2 supplier transparency and efficiency of the supply chain but also strengthens collaboration with suppliers ensuring efficient online operation of every

workshops. These efforts empowered suppliers to improve lean practices quality awareness and digital-driven

link from admission to exit of suppliers facilitating online management of

management thereby achieving a comprehensive enhancement of the supply chain system. the entire supply chain and promoting efficient operation and continuous SRM供应商管理系统界面

optimization of the overall business.

5960

Su

s py ps lit ee rm q ua aas n

l

d itys ess Em Se Gn t

livery

Timel

y de

rateServe the world through intelligent solution Help upgrade intelligent garment manufacturing

SRM system portal Help industry development

System portal Supplier management Procurement information management Basic data management Supplier portal The Company is deeply involved in the industry ecosystem actively participating in standard-setting and the establishment of industry norms.Supplier admission Collaborative order Basic SAP data My platform Leveraging its professional expertise it empowers industry development and sets new benchmarks for the sector. By actively participating in My platform and files management

Collaborative order high-level industry conferences at home and abroad the Company engages in forward-looking dialogues with leading global companies and

Sample delivery VMI material

management management

management experts to jointly chart the blueprint for the future of the industry. Moreover the Company continues to expand its high-end cooperation network

Collaborative order

Tasks Collaborative quality management through joining a number of authoritative industry associations and leveraging multi-dimensional collaborative platforms promoting industrial

Drawing management management Basic procurement Collaborative quality

Collaborative financial data management chain integration and innovation and injecting new impetus into the high-quality development of the industry.Performance assessment management Collaborative financial

My notifications management Procurement report management

management Plastic crate

Collaborative inventory Participation in standard preparation

management Quality report Basic quality data

management

Password retrieval management Feeding management

request Inquiry information management Plastic crate Giving full play to its experience in the development of standardized management systems the Company actively participates in the management Drawing management preparation and improvement of industry standards. By integrating internal resources and combining market demands the Company not only

Supplier name change Contract management

Collaborative return Basic warehouse data Collaborative inventory management management participates deeply in standard preparation but also plays a leading role in key links leading the standardized development of the industry

management Inquiry information management and contributing to improving the overall development level of the industry. Hu Wenhai President of the Product Team was honored the

System Basic scheduling SMS log Interface management and log synchronization Contract management "National Advanced Worker in Standardization of Industrial Machinery Electrical System Industry in 2023" for his outstanding performance in

Notification

management Backstage Tools Process System Performance assessment

standardization work.management management management management

SRM supplier management system Key performance

Sunshine procurement During the reporting period the Company participated in the drafting of 23 standards (including project approval)

including 5 national standards 16 industry standards and 2 association standards.The Company is committed to building a transparent and fair procurement system for comprehensively promoting supply chain compliance

management so as to advocate observation of fundamental principles of integrity eliminate fraud and work with suppliers to create a fair and

sustainable supply chain ecosystem. The Company enters into anti-fraud agreements with all suppliers with a signing rate of 100%. At the Standard reference Name Classification Role of the Company

annual supplier conference the Company strengthened anti-fraud advocacy and required all suppliers to sign an integrity commitment letter to

enhance compliance awareness and implement transparent procurement. GB/T 30420.1-2024 Sewing Machinery Terminology - Part 1: General Terminology National standards Main drafter

GB/T 30420.1-2024 Sewing Machinery Terminology - Part 1: General Terminology (English version) National standards Main drafter

In addition the Company formulated the Material Bidding Process and related regulations to clarify the key points and operational

GB/T 30420.3-2023 Sewing Machinery Terminology Part 3: Spreading and Cutting Machines

requirements of bid opening bidding and evaluation. By standardizing procedures and issuing tender documents openness transparency and Terminology (English version)

National standards Main drafter

fair competition are ensured in the procurement process efficiently promoting compliance management. GB/T 30420.4 Sewing Machinery Terminology - Part 4: Functional Parts Terminology National standards Participated in

QB/T 2046-2024 Industrial Sewing Machine Test Method for Thread Tightening Rate of Single Needle Straight Line Lockstitch Machine Industry standards Main drafter

Case: supply chain anti-fraud oath ceremony promoting supply compliance through integrity

commitment QB/T4391 Industrial Sewing Machine Feed-off-the-arm and Chain-Stitch Sewing Machine Head Industry standards Main drafter

QB/T 4304-2024 Industrial Sewing Machine Computer Controlled Pattern Sewing Machine Industry standards Participated in

In January 2024 the Company organized an anti-fraud oath ceremony for supplier representatives and procurement department QB/T2529-2024 Computer Controlled Simple Interlock Sewing Machine Industry standards Participated in

employees. All participants jointly studied anti-fraud policies and related regulations and committed to upholding the fundamental

QB/T 2148-2024 Industrial Sewing Machine Medium Speed Zigzag Sewing Machine Industry standards Participated in

principles of integrity resisting commercial bribery and other misconduct and fostering a fair and just business environment. The

QB/T 4384.2 Test Method for Energy Consumption of Sewing Machines - Part 2: Post-bed Company emphasized that it will continue to improve its anti-fraud system have zero tolerance towards fraudulent behavior and machine Industry standards Participated in

work together to build a clean supply chain ecosystem. QB/T 4384.3 Test Method for Energy Consumption of Sewing Machines - Part 3: Overlock Machines Industry standards Participated in

Plan No.20242287-T-604 Mechanical and Electrical Equipment - Sewing Machinery Digital Control System - Part 2: Data Dictionary National standards Participated in

Plan No.2023-0283T-QB Preparation of the standard General Principles for Evaluation of Smart Parks in Light Industry Industry standards Main drafter

Plan No.2023-1699-QB Seam Material Glue Dispenser Industry standards Participated in

Plan No.2023-1701-QB Thread Trimming Machine Industry standards Participated in

Plan No.2024-1843T-QB Inspection Rules for Sewing Machinery Products Industry standards Participated in

Plan No.2024-1844T-QB Sewing Machine Terminology Control System Terminology Industry standards Participated in

Plan No.2024-1764T-QB General Technical Requirements for Sewing Machine Frames Industry standards Participated in

Plan No.2024-1765T-QB General Technical Requirements for Sewing Machine Tables Industry standards Participated in

Summary of standards that the Company has participated in the preparation

61 62Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Major industry events Case: the Company brought two best-selling products namely A.M.H and Urus to the Myanmar exhibition and won wide acclamation and enhanced its international influence

Upholding the concept of openness and cooperation the Company actively participates in exchanges and cooperation with various In December 2024 the Company brought a complete set of intelligent connection solutions to the Myanmar International Textile

industry associations. By participating in various activities of industry associations the Company not only has an in-depth grasp of industry & Garment Machinery Exhibition. With the excellent performance and innovative technology of star products such as "A.M.H" and

development trends but also explores cooperation opportunities with other companies bringing new vitality to the development of the industry. "Urus" products the Company attracted attention of many customers and media. In addition "Urus" products stunned the audience

with a world record of 1001.98 meters winning wide recognition and fully demonstrating the Company's intelligent manufacturing

Case: the Company joined hands with partners in the industry to promote the intelligent strength and international influence.upgrading of Vietnam's garment industry

In August 2024 Jack Technology together with the Vietnam Textile and Apparel Association and several companies held the

"Artificial Intelligence and Intelligent Manufacturing" Summit Forum in Vietnam. The event brought together more than 150

representatives from garment companies in China South Korea and Vietnam to discuss the path of digital transformation in the

industry. At the event the Company spotlighted its smart sewing equipment such as the "A.M.H" products shared digital practical

experience and exchanged views with brand owners on flexible production trends.Case: the Company held a new product launch event in Bangladesh and A.M.H and Urus

series won high recognition

In September 2024 the Company held a new product launch event in Bangladesh spotlighting it smart sewing equipment such as

"A.M.H" and "Urus" attracting the attention of many local large clothing company leaders. "Urus" sewing machines demonstrated

continuous sewing of complex fabrics at the event showing excellent stability and efficiency and earned rounds of applause.This launch event not only demonstrated the Company's technical strength but also injected strong impetus into the high-quality

Case: the Company organized a global distributor conference for exploring overseas markets development of Bangladesh's garment industry.In October 2024 the Company organized an overseas distributor

conference in Taizhou with the theme of "Blockbuster Products

Create Value and Technology Wins the Future". The event attracted

overseas distributors and representatives from over one hundred

overseas clothing companies to deepen cooperation consensus

through smart factory visits hot product strategy discussions and

other activities. During the event the Company highlighted innovative

products such as A.M.H and Urus series as well as complete sets of

intelligent connection solutions further consolidating the Company's

strategic partnership with global partners.Case: the Company participated in the Frankfurt Exhibition in Germany making a new

Case: the Company held a global launch campaign for its Urus products gaining wide breakthrough in brand internationalization and technical cooperation

recognition from the Cambodian textile industry

In April 2024 the Company participated in the Frankfurt International Exhibition in Germany with its international brands including

In June 2024 the Company successfully held a launch event in

Bullmer Vibemac and Maica.Cambodia as part of its global launch campaign for Urus products.At the event through speed racing off-road races (processing on

extreme fabrics) and other activities Urus intelligent sewing machines

demonstrated supreme performance on various extreme fabrics and

won unanimous praise from participants. The leaders of the association

said that this product will provide important support for the sustainable

development of the textile industry. Through this launch event the

Company not only showcased its technical strength in the field of

sewing equipment but also received extensive coverage from local

media effectively boosting the brand's international influence.

63 64Serve the world through intelligent solution Help upgrade intelligent garment manufacturing

Case: on-site meeting with leaders of human resources and social security nationwide leading

the industry toward a new trend with the achievements of expertise-based wealth creation Membership of associations

In 2024 the national "2024 Vocational Capacity Building Work

Symposium" was held in Taizhou. Leaders such as directors Name of associations Title

and section chiefs of the Department of Human Resources and

Social Security from provinces across the country visited Jack to China National Garment Association Vice President

learn about the development of Jack's expertise-based wealth-

creating enterprise. As the main site for visiting the Company China Textile Planning Research Association Chairman

showcased relevant achievements of expertise-based wealth

China Sewing Machinery Association Vice Chairman

creation to the whole country.Zhejiang Veterans Support Association Executive Vice President

The Listed Company Association of Zhejiang Vice President

Case: the Company attended the 7th World Zhejiang Entrepreneurs Convention and became a

new benchmark for high-quality development

Youth Entrepreneurs Association of Zhejiang Vice President

In November 2024 the Company was invited to attend the 7th

World Zhejiang Entrepreneurs Convention held in Hangzhou Zhejiang New Generation Entrepreneurs Association Vice President

as an outstanding corporate representative. At the "Eagles

Soaring" Zhejiang Entrepreneurs Embarking on A New Zhejiang Federation of Industry and Commerce Standing Committee Member

Journey Ceremony the Company's representatives took the

stage showcasing the Company’s outstanding achievements Taizhou Import and Export Enterprises Association President

in innovation-driven and high-quality development while

embodying the heritage and evolution of the Zhejiang Taizhou Sewing Equipment Industry Association President

Entrepreneurial Spirit. Taizhou Association for Party Affairs Responsible Persons in New

Economic Organizations and New Social Organizations President

Case: the Company's representative delivered a speech at the National Light Industry Exchange Taizhou Human Resources Service Association President

Conference as a representative of Zhejiang enterprises and was highly praised by the All-China

Federation of Trade Unions Zhejiang Provincial Committee Taizhou Merchants Research Association Rotating President

In June 2024 as the only corporate representative from Zhejiang Taizhou Federation of Industry and Commerce Vice Chairman

Province the Company participated in the national demonstration

and exchange activity held in Danyang Jiangsu. The event was Taizhou Federation of Enterprises Taizhou Entrepreneurs Association Executive Vice President

aimed at deepening the building and reform of the industrial

worker team in the light industry and promoting the development Taizhou New Generation Entrepreneurs Association Executive Vice President

of new quality productive forces through trade unions. At the

conference the Company shared its innovative practices and Taizhou Youth Entrepreneurs Association Vice President

experience in building an industrial workforce and improving

productivity which was highly recognized by all parties present. Taizhou RCCK Enterprise Association Vice President

Taizhou Bay New Area Youth Entrepreneurs Association President

Case: honored as "Meritorious Member" demonstrating the Company's contribution to the industry Jiaojiang District Youth Entrepreneurs Association President

In December 2024 the Company was Jiaojiang District New Generation Entrepreneurs Association President

awarded the title of "Meritorious Member"

of the China Sewing Machinery Association

at the 40th Anniversary Commemoration

Conference of the China Sewing Machinery

Association and the 4th Expanded Meeting

of the 11th Council. This honor is a full

recognition of the Company's long-term

contribution to the development of the

industry and reflects the Company's status

and influence in the industry.

65 66Build a thriving team together Pool wisdom to power dreams

Protect employees’ rights and interests 90% of our new hires are high-achieving graduates from campus recruitment The remaining 10% are

from social recruitment

The Company is committed to creating a fair and transparent employment mechanism to ensure that the rights and interests of employees

are fully protected. The Company upholds a talent philosophy of "pragmatism self-motivation and positive energy" offering flexible work 80% of our middle management are cultivated

models personalized career development paths and internal innovation incentives. This enables every employee to maximize their strengths from the grassroots level

in the right role. Through a sound welfare system career development support and innovation incentives we provide employees with a broad The remaining 20%

are from social

space for growth. In addition attaching importance to pragmatism self-motivation and positive energy the Company is committed to creating a recruitment

positive working environment and to enhancing employees' sense of happiness and belonging.

95% of our senior management are cultivated

from middle management

Key performance Demonstrate solid work ethic with hands-on approach exceptional The remaining 5%

endurance in challenging situations strong execution capabilities are from social

and unwavering resilience recruitment

The Company's average salary income

this year was about Grassroots Middle Senior

RMB 144800 Pragmatism Talents composition

Key performance Number of male

Per capita income was about Self-motivation Positive energy employees

4873 Number of female

RMB 895400 employeesDuring the reporting period

Be positive and enterprising Gender structure

2290

proactive have a sense of Be confident optimistic and of employees

achievement and ambitions highly stress-resistant

Total number of employees

Our talent philosophy

7163 Number of employees of 50 years of age and

above

Distinctive Practices Number of employees

of 41-50 years of age 984

Flexible working Personalized career Internal innovation

mode development planning mechanism Iron triangle team Number of new employees

1750

Age

Eligible professionals We design individualized We incentivize We form cross-functional 1561 distribution of

are allowed to work career development paths intrapreneurship by teams to tackle breakthrough employees

remotely with a focus aligned with employees' providing corporate projects capitalizing on core Under 30

on deliverable-based competencies interests resources for employee- competencies to elevate 31-40 2028

evaluation enhancing and strengths. initiated ventures with solution-delivery capacity and Employee turnover rate was

operational flexibility profit-sharing upon success collaborative performance. 2401

to drive innovation 10% Doctoral degree

Below Bachelor's 11

degree Master's degree

5719133

Proportion of labor contracts signed

Recruitment 100% Education Bachelor's degreebackground

1300

The Company has built a talent supply system through multiple channels such as campus recruitment social recruitment and internal

recruitment promoting employment of local talents and special groups and contributing to community development. Additionally we have

formulated the Management Regulations for Talent Recruitment in accordance with the Company Law of the People's Republic of China the

Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China to standardize the recruitment

process and ensure fair and just employment opportunities. Employee structure

69 70Build a thriving team together Pool wisdom to power dreams

Diversity and equality Compensation incentives Key performance

During the reporting period

The Company upholds the concept of diversity equity and inclusiveness in strict compliance with the Law of the People's Republic of China Guided by its value-creation paradigm the Company is committed to building a the Company issued employee

on the Protection of Women's Rights and Interests prohibiting discrimination based on gender age education ethnicity religion or physical comprehensive and efficient incentive system. Through scientific compensation incentive bonuses and personal

condition. All employees are guaranteed equal employment and career development opportunities. Attaching importance to the employment management and performance evaluation mechanisms the Company continuously dividends totaling

of persons with disabilities the Company has launched the "Sunshine Home" initiative providing dedicated positions and barrier-free facilities optimizes its talent structure achieving synchronous growth between individual

to ensure workplace accessibility and equal benefits for employees with disabilities. In addition the Company has provided special care for careers and organizational objectives. Equity incentives closely align employees' RMB 175.54 million

pregnant employees adjusted work arrangements and optimized the working environment to ensure their health and safety during pregnancy. interests with the Company's long-term development enhancing their sense of

Through these initiatives the Company aims at creating an equal respectful and inclusive working environment for every employee fulfilling belonging and responsibility. By fostering a fair transparent and dynamic work

its social responsibility and promoting harmonious development. environment the Company continuously enhances employees' sense of fulfillment

and motivation achieving shared value creation between talent and the enterprise.Case: our employment plan for people with disabilities offered tailor-made

positions for equitable workplace integration The Company has established the Management Regulations on Compensation Incentives and the Compensation Incentive System adhering

to the philosophy of "shared rewards enabling dedicated employees to co-create and share alongside the Company with compensation and

opportunities favoring outstanding employees". Compensation followed the principle of "role-based grading grade-based pay person-position

Attaching great importance to the disabled group in employee matching and pay changes with role changes". Through the "3+3" comprehensive incentive system the Company enhances employees'

recruitment the Company actively provides them with equal employment sense of gain through salaries bonuses performance sharing and equity incentives. In terms of non-material incentives the Company

opportunities. So far 90 disabled people have been recruited. The provides employees with growth opportunities respect and recognition through training activities and performance appraisals thereby fully

Company tailors suitable positions for each disabled employee based on stimulating their enthusiasm and creativity.their characteristics and abilities and strives to create a well-equipped

Comprehensive compensation incentives

working and living environment for them to meet their daily needs.Additionally necessary rehabilitation support is given to help them better

integrate into society."Earn & Share" - enabling dedicated employees to co-create and

share the fruits of its business success

"More pay for more contribution" - unwaveringly favoring outstanding

Protection of the rights and interests of employees employees in both compensation and opportunities

The Company attaches great importance to the protection of the rights and interests of employees in strict Medium to long term:

compliance with laws and regulations to ensure that the legitimate rights and interests of every employee are Medium term: 3 years+

1-3 years

fully respected and protected such as the Law of the People's Republic of China on the Protection of Minors

Short term: Equity incentive

the Regulations on Paid Annual Leave for Employees the Regulations on Work-related Injury Insurance and the 1 year

Regulations on the Prohibition of Child Labor. The Company strictly prohibits child labor and forced labor and Strivers incentive programa Restricted stock incentives:

inspire executive entrepreneurship;

safeguards employees' rights to free choice of employment freedom of association and collective bargaining Bonus (earn & share) Profit sharing: rewards grow share profits and take risks

while maintaining zero tolerance for discrimination or harassment to ensure an equitable workplace. with profits Equity participation plan for critical Fixed salary (job value) Business bonus package: performance personnel in group subsidiaries:

growth bonus growth Increase cash rewards for key

Our onboarding system integrates automated ID verification with manual audits implementing dual safeguards Role-based grading and grade- Summit Project Award: incentivizing top personnel to retain outstanding

Stimulate innovation and

talents entrepreneurial enthusiasm and based pay talents to tackle key challenges

against underage employment. If an employee is found to be under the age of 16 his/her work will be empower subsidiariesPerson-position matching and pay Special Incentive Award: incentives for

immediately stopped and necessary assistance provided. In addition employee separation procedures strictly changes with role changes projects

adhere to voluntary principles with multi-tiered confirmation dialogues to safeguard departing employees'

legitimate rights and interests throughout the offboarding process. In addition the Company has established

a variety of complaint channels such as the "I have something to say" employee feedback QR code and Non-material incentives: growth respect recognition - the secret to strengthen employees' self-motivation

mailbox in each factory strictly prohibiting forced labor and ensuring that the rights and interests of employees

are safeguarded and fully protected.High Potential

Key performance Leadership styleDevelopment Program

Promotion and Organizational Honors and

During the reporting period the Company maintained development atmosphere incentives

zero No violations

Rotation and Welfare & care Praise and

authorization appreciationa

of laws and regulations on Counseling and training Team building

instances of child labor employment child labor and forced labor

7172

Recognition

Respect

GrowthBuild a thriving team together Pool wisdom to power dreams

3+3 Incentive System Equity incentive

Growth honor and compensation 1 We have introduced equity incentive measures to grant equity or options to core employees management and outstanding talents closely

Growth and tying their personal interests to the long-term development of the Company. This measure enhances employees' sense of belonging

A three-dimensional incentive approach - "material & opportunity and responsibility stimulates team enthusiasm and helps the Company attract and retain outstanding talents creating greater value for

compensation opportunity & growth recognition & incentives shareholders.honor" - to ignite both organizational and employee

motivation.Victory Key performance

Salary bonus and shareholding High

performance

Team motivation The third phase of the Employee Stock Ownership Plan in 2021

A three-tier incentive structure - "short-term fixed

salary & bonus sharing medium-term Strivers

Incentive Program and long-term equity incentives 3 2 The total funds raised were RMB Among them employees

& new venture partnership mechanisms" - to enable Compensation Honor and below senior management

employees to co-create and share the fruits of the and material spiritual 154.2 million with financing funds

incentives incentives

business success of the Company. and self-raised funds at a ratio of 1:1. Number of employees 564

They held 4397901 shares covered

We adhere to the principle of "high returns for high performance" unwaveringly favoring "employees with outstanding

performance" in both rewards and opportunities. of the Company and covered 569 569 Shareholding

employees including 564 below structure of

Performance management employeessenior management accounting for

To improve organizational efficiency stimulate employees' potential and achieve strategic goals the Company formulated the Performance 99.12% of the total number and is

Management System and established a closed-loop performance management process. Through scientific goal setting process tracking and

still in the vesting period.results evaluation performance management helps the Company optimize resource allocation improves employees' work efficiency and

provides clear direction and support for employees' career development.Performance management is a management process not just performance evaluation! Restricted Stock Incentives Plan in 2023

Four cycles of PDCA in performance management

Performance Performance plan * The number of shares granted for the first time was 8.192 million. The first grant results application

Bonus Promotion and Set goals for the Company price was RMB 10.62 per share and the number of employees granted for the

distribution development 4 1 departments and individuals

Compensation Long-term Performance Performance Repeated communication and first time was 263 including 257 below the senior management accounting for

adjustment incentives application plan consensus building

Job 97.72% of the total number. * The reserved grant quantity was 495000 shares. Number of first batch of grantees

adjustment The reserved grant price was RMB 10.12 per share and the reserved grant quantity Corporate Performance

Performance strategy counseling was 38 all of whom are non-senior management. 263

evaluation

32

Organizational performance Performance Performance Observation and recording

evaluation evaluation counseling Guidance and feedback

Individual performance

evaluation

Communication and consensus Shareholding

Closed-loop performance management process structure of

employees

If an employee disagrees with the performance director's evaluation results or believes that they are unfair he Among them employees below

or she may file a complaint with the Performance COE of the Human Resources Department and submit written senior management

complaint materials. The Human Resources Department will organize an investigation including peripheral

interviews and collecting opinions from directors and political commissars and submit the results of the 257

investigation to the department AT for review. If performance results need to be adjusted they will be handled

according to the principle of "up and down". The Human Resources Department will provide feedback on the

investigation results to the employee within one week of receiving the complaint.

73 74Build a thriving team together Pool wisdom to power dreams

Talent Training and Development

Iron Triangle Training Camp

Staff training Business Two

operations sessions

The Company has established a "Business School" to implement the concept of "using the best people to train better people" and focus on Innovation Boot Camp

business operations to replicate and promote successful experience. Additionally a business school training-to-action plan was formulated to

provide all employees with training programs from induction to various development stages. The training system covers different levels and

positions aiming to comprehensively enhance the professional capabilities and comprehensive quality of employees. Additionally the business

school closely integrates with the Company's key projects and implements hierarchical management to ensure that the training content aligns

perfectly with business needs which not only helps employees grow but also promotes the realization of the Company's strategic goals High Potential Growth Young Seedlings

forming a virtuous circle of talent training and business development. Business Leadership Six Talent team Training-to-Action Training-to-Action

Training-to-Action Camp sessions

Camp Camp

Key performance

During the reporting period

Domestic Marketing "Iron Army" Domestic Marketing General

Online learning platform training On-the-job training sessions held Participants involved Training-to-Action Camp Training-to-Action Camp

1257 Marketing person-times 200+ all employees Three empowerment sessions

The total learning duration was Total class time was Overseas Marketing "Iron Army" Training-to-Action Camp

1942 hours more than 8000 hours

New employee "Future Star" Training Camp Social Recruitment · Orientation

Five

onboarding Training-to-Action Camp sessions

Supplier

Excellent Enterprise Production Management Training Course

empowerment Two sessions

Dealer VIP Customer Management Product Sales Skills Training-to- Two sessions

empowerment Training-to-Action Camp Action Camp

Training Training Yidian Knowledge

management operation Management Ten major Course Lecturer

system process Platform methods development training

75 Business School Annual Project Plan 76

Business School Training-to-Action PlanBuild a thriving team together Pool wisdom to power dreams

Case: held the Orientation Training Camp to help new employees recruited from Employee development

society integrate into the team

To help new employees quickly integrate into the team and improve The Company established a multi-level talent training system improved career channel management and defined the development direction

their job competency the Company successfully organized in 2024 of employees. Through echelon construction and optimization of the cadre management system we promoted the growth of management

four orientation training sessions covering a total of 160 employees professional and technical talents enhanced team competitiveness and corporate adaptability and ensured the long-term and stable operation

with a total learning duration of 1600 hours. Covering various aspects of the Company.such as company culture business processes professional skills

and professional qualities the training adopted diversified teaching F o c u s i n g o n t h e e c h e l o n A preliminary cadre management

Based on the position value

methods including classroom lectures case analysis and practical construction of the talent team system was established focusing matrix a M-series and P-series

drills which effectively improved the comprehensive abilities of new and based on the Company's on mechanisms such as cadre dual-channel rank management rotation and performance-based

employees and laid a solid foundation for their future work. strategic roadmap we formulated system is formed to show paths for a talent growth path to accelerate elimination to cultivate well-

employees' career development the training of management rounded leaders. This initiative

professional technical and other aimed to address the growing

Case: held the High Potential Talent Training Camp to empower growth and reserve and cadre echelons demand for versatile cadres driven

stimulates potential and to enhance the sustainable by business expansion enhance

competitiveness of the talent team. the vitality of the leadership team

and strengthen rapid adaptability

to evolving external environments

In 2024 the Company successfully organized the High Potential Talent

Training Camp with a total of 3 sessions. 110 employees participated

in the training with a total learning duration of 1760 hours. Through Employee career development

systematic course setting and practical drills the training helped

trainees improve their strategic thinking business capabilities and

leadership enhancing their job competence.P12

Chairman Chief scientist Chief marketing

expert

Case: held the Business Leadership Training Camp to enhance strategic thinking P11Vice Chairman

and leadership and CEO

P10

Senior marketing Senior production

Deputy General Senior R&D expert expert technology expert

Manager P9 Senior XX director

In 2024 the Company successfully organized the Business Leadership Department P8 Production

Training Camp with 2 sessions attracting a total of 70 trainees. The General Manager R&D expert Marketing expertP7 technology expert

total training duration reached 1680 hours. Focusing on business Department Deputy Intermediate XX

General Manager director

strategy leadership improvement and decision-making ability training Department level-1 P6 Senior R&D Senior marketing Senior production

the training helped trainees grow into business leaders with a global director P5 engineer manager

technology

Department level-2 engineer

XX director

vision and innovative thinking. 07 Level-7 technician

director P4 Intermediate Manager XX

Manager/Director Intermediate R&D Intermediate production 06 Level-6 technician

P3 engineer marketing manager technology Supervisor XXengineer 05 Level-5 technician

P2 Junior R&D Junior marketing Junior production

engineer manager

XX specialist

technology engineer 04 Level-4 technician

Other training P1 R&D engineer Internship Internship Production XX specialist

(probationary) Marketing Manager Technician (probationary) 03 Level-3 technician

02 Level-2 technician

01 Level-1 technician

Career development

channel for Professional track career development path Skilled track career

management cadres development path

Talent development channel

7778

Cadre management and

construction

Multi-faceted talent training

mechanism

Encourage employees' growth

and development through multiple

channelsBuild a thriving team together Pool wisdom to power dreams

University-enterprise cooperation Care for employees' health

University-enterprise cooperation is an important way to promote enterprise development and talent training. The Company actively carries out The Company consistently adheres to a people-oriented approach prioritizing employees' occupational health psychological well-being and

collaborative innovation cooperation with colleges and universities to strengthen the connection between industry and education and to jointly life welfare while safeguarding their democratic rights. In accordance with the relevant provisions of the Labor Law of the People's Republic

cultivate high-quality talents. Through technological breakthroughs and resource sharing we explore diversified collaboration models to drive of China the Trade Union Law of the People's Republic of China the Trial Measures for Collective Wage Negotiation etc. the Company

industry advancement and contribute to society. established a comprehensive Regulations on Occupational Safety and Health to ensure the work safety of employees provide diversified

welfare policies and cultural and entertainment activities strengthen employee cohesion prioritize democratic management encourage

Other colleges and universities Local colleges and universities employees to actively participate in company management and build a harmonious and stable corporate environment.Harvard University Central South University In order to implement the main responsibility for work safety as mandated by the Work Safety Law of the People's Republic of China and other

Stanford University Donghua University laws and regulations improve its intrinsic safety standards prevent work safety accidents and build a long-term mechanism the company

Tsinghua University Jiangnan University Taizhou University formulated a medium-to-long-term development plan on occupational safety and health in accordance with the Enterprise Commitment on

Zhejiang University Zhejiang University of Taizhou Vocational and Technical College Safety. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in work safety the Company adheres to the

Shanghai Jiao Tong Technology Taizhou Technician College concept of safety development upholds the principle of "Safety first prevention foremost and comprehensive management" and follows the

University Jilin International Studies guidelines of "People-Oriented" and "Whoever is in charge bears responsibility." We implement national work safety laws regulations and

Huazhong University of University mandatory standards strengthen supervision management and performance evaluation and enhance safety management standards. We

Science and Technology Wuhan Polytechnic University also embrace the philosophy of "Life first health priority hygiene compliance and environmental protection in sync" thereby solidifying the

safety foundation for the stable and sustainable development of the Company.University-enterprise cooperation

Occupational health and work safety objectives

Zero incidences of serious The number of new cases of

Case: university-enterprise collaborative innovation and cooperation promoted the injuries and above occupational diseases was

high-quality development of intelligent manufacturing in textile and apparel industry

Prevent serious 0 0

accidents Prevention and control of

occupational diseases

In 2024 the Company signed the "University-Enterprise Collaborative Innovation and Cooperation Agreement" with Changzhou

Vocational Institute of Textile and Garment with both parties committing to strengthen industry-education integration and

establish substantive operational mechanisms. Through joint talent training technological research and teaching resource The accident rate of direct economic Zero fire accidents loss exceeding RMB50000 was

development the Agreement aimed to promote the integration of vocational and general education industry and education and

science and education. The cooperation provided support for intelligent manufacturing of textile and apparel industry especially

in jointly building technology innovation and application platforms further promoting university-enterprise cooperation and 0 0Eliminate fire hazards Strictly control

industry development. economic losses

The certification rate of safety directors

The employee work safety safety management personnel and

education and training rate reached special equipment operators reached

Safety training for all 100% Key positions require 100%

employees certification

The regular inspection rate of The intact rate of major equipment

special equipment reached and facilities reached

Special equipment 100% Ensure the equipment 100%

compliance operation is in good condition

The timely rectification rate of The pass rate of occupational health

accident hazards reached inspection in the workplace reached

Timely rectification of 100% Working environment 100%

hidden dangers met standards

79 80Build a thriving team together Pool wisdom to power dreams

Strengthen the implementation Improve safety management

of principal responsibilities systems Occupational health and safety

Carry out in-depth actions to implement Strengthen the responsibility system and system building.the main responsibility for work safety. Improve safety regulations and systems and adhere to the principle of no production

Strengthen the work foundation and unless it is safe. The Company always puts the occupational health and safety of employees first. We established a complete occupational health and safety

improve the level of intrinsic safety. Strengthen the responsibilities of leaders and team members at all levels and improve management system effectively preventing safety accidents and ensuring the work safety of employees through comprehensive measures

Prevent accidents and establish long- systems and operating procedures. such as risk identification emergency drills and safety training.term mechanisms. Implement safeguard measures and carry out risk identification inspection and rectification

of hidden dangers.Sign safety responsibility agreements at each level to clearly define rewards and Key performance

punishments.Improve the systems and records for hidden danger investigation and control major

hazard source monitoring education and training etc.During the reporting period

Efficiently investigate and Deepen team safety Input of the Company in employee Employee work-related injury Number of general

manage hidden dangers construction work-related injury insurance insurance coverage rate accidents

Establish a working mechanism for identifying and rectifying Strictly implement the "three regulations" and

hidden dangers. regularly maintain testing equipment. RMB3.28 million 100% 0

Implement the "Five In-Place Measures" by ensuring that Establish a competition and assessment mechanism

all employees fulfill their responsibilities for hidden hazard for team leaders.investigation rectification and management. Carry out "zero accident" activities and promote the

Establish a system for evaluating the effectiveness of hidden construction of safety culture.danger rectification and subsequent assessment. Occupational disease incidence

Those who fail to rectify hidden dangers shall be held accountable. No No

0 fatal and serious injury food poisoning incidents

Optimize employee safety Promote safety Strengthen the prevention and accidents

training standardization control of occupational hazards

Develop annual training plans and ensure Improve safety standards Improve occupational safety and health facilities Signing rate of safety Safety-certified utilization Certification rate of special

funding. systems and assessment and and equipment. responsibility agreements rate operation personnel and special

Ensure that personnel are certified and incentive mechanisms. Carry out declaration of occupational hazard equipment operators

qualified before taking up their posts. Deepen the construction of projects.Sign the labor contract strictly. work safety standardization. Strengthen education equip with protective 100% 100%

equipment and conduct regular health checks. 100%

Effective configuration rate of fire- Completion rate of periodic The percentage of principal

Build a work safety early Improve the emergency fighting equipment and facilities inspection of special equipment

persons in charge and safety

100% 100% management personnel holding warning mechanism plan mechanism certificates

Establish a dynamic monitoring and early Effectively align emergency plans with government

warning system. counterparts and carry out regular drills. 100%

Conduct regular risk analysis and assessment Give on-site management personnel the decision- Physical examination rate of

and issue early warning information in a timely making power to suspend production and evacuate employees entering positions with

manner. personnel. occupational hazards

Report major hidden dangers to the regulatory Those who fail to evacuate personnel in a timely

authorities in a timely manner. manner shall be held accountable for legal liability. 100%

Promote innovation in Build a safety information

safety technology platform

Carry out research and development of Build a multifunctional safety informatization platform.safety technology and rectify dangerous Use big data analysis to accurately identify risks.processes. Build a safety education and training module to improve training

Promote applicable technologies new effectiveness.equipment new processes and new Set up information sharing and communication functions to create

standards. a new landscape of safety management with the participation of

Improve the level of automated all employees.production.Key points for work safety

81 82Build a thriving team together Pool wisdom to power dreams

Major honors Case: organized safety training activities to enhance employees’ safety awareness

President

Attaching great importance to work safety the Company formulates

a comprehensive safety training program at the beginning of each

year encompassing three-level safety education training job transfer

and reinstatement training and special operation personnel training. It

Occupational Occupational also designs targeted training courses based on the actual risks of the

health health Departmental workshops to ensure that the training aligns nicely with the actual work

and safety and safety implementation requirements effectively enhancing employees' safety awareness and

management organization operational skills.Key performance

The Company has passed ISO45001 Management Organizational Structure of the Company's Occupational

System certification Health and Safety Management Committee

In 2024 the Company conducted 7500 combined training hours in occupational health and work safety

delivering an average of 1 training hour per employee.Safety incident handling and

Health risk identification and control Emergency plans and risk drills Each team conducts two team activities every month. During the reporting period more than 2000 team

improvement

activities were carried out more than 60 training sessions were conducted and the completion rate of team

Risk identification and Emergency plan formulation: Incident handling process: activities was 100%.assessment: To conduct risk Based on the risk identification We have established a complete

identification in an all-round way results the Company formulated occupational health and safety 100% of new employees successfully completed the three-level safety education program and 100% of

the Company compiled the Hazard special emergency plans and on- incident handling process. After active production personnel fulfilled their occupational safety training requirements.Identification and Risk Assessment site disposal plans and compiled an incident occurs detailed

Record Form and the List of Major them into a manual to ensure that information must be reported to

and Priority Hazard Sources and emergency response had rules to the Company Group on Wechat

formulated control measures and follow. and recorded through the Eye on

inspection standards to ensure that Emergency drills: In 2024 the Safety system. An investigation

risks were under control. Company organized more than will be conducted in workshops Protect employees’ mental health

Safety inspection and rectification: 150 comprehensive special and or departments to identify the

Through daily inspections pre- on-site emergency drills covering causes and corrective measures

holiday inspections comprehensive various scenarios such as electric proposed to ensure that the Attaching great importance to the mental health of

inspections professional inspections shock accidents and mechanical responsibility for the incident is its employees and providing all-round psychological

and seasonal inspections we injuries enhancing the emergency clear and rectification measures support through a series of professional initiatives the

thoroughly checked for safety response capabilities of all are in place. Company is committed to creating a good working

hazards rectified problems in a timely employees. environment where understanding and support coexist

manner and formulated long-term helping employees to develop spiritually and enhancing

measures to prevent them from their sense of happiness and work enthusiasm.happening again.Occupational health and safety management measures

Carry out mental health management training to popularize Set up a psychological counseling service room for

mental health knowledge among employees employees to provide them with professional psychological

counseling and guidance services helping them solve

psychological problems encountered at work and in life and

relieving their psychological pressure

Management measures for employees' mental health

83 84Build a thriving team together Pool wisdom to power dreams

Care for employees and activities Case: provided honors to employees to enhance cohesion

Attaching great importance to the physical and mental health and living conditions of its employees the Company is committed to building a In order to stimulate employees' enthusiasm for work enhance team

complete welfare system and care mechanism providing employees with diversified welfare policies thoughtful services and colorful cultural cohesion and set a benchmark example the Company has established

activities enhancing employees' sense of belonging and team cohesion and creating a harmonious and progressive corporate atmosphere. a multi-level and multi-dimensional honor incentive program which

recognizes the contributions and values of employees in all aspects

through the issuance of honorary certificates bonuses and gifts. In 2024

the Company carried out 227 honor incentives and 685 employees won

awards. The awarding of employee honorary incentives helps to create

Welfare & care a positive working atmosphere provides employees with a platform for

personal growth and career development demonstrates the Company's

attention and care for outstanding talents and further enhances

Based on the in-house Management Regulations on Welfare the Management Regulations on Loans for House Purchase the Management employees' sense of belonging and honor.Regulations for Vehicle Allocation and the Management Regulations on Attendance and Vacations the Company provides employees with

a rich and diverse range of benefits including statutory benefits and company-specific benefits to enhance employee loyalty and enthusiasm

and improve team responsibility and cohesion.Case: helped employees in need to show the warmth and care of the Company

Social insurance: five insurances and one fund

Commercial insurance: including accident insurance business trip accident insurance hospitalization

Insurance medical assistance major disease insurance etc. The Company consistently attaches importance to the living conditions of employees actively fulfills its social responsibilities provides

benefits assistance to employees in difficulties in various ways and helps employees overcome difficulties which enhances employees' sense

of belonging and identity with the Company and strengthens cohesion conveying the Company's care and warmth.Health check-up: Provide a comprehensive health check-up for middle and senior management every

year for early detection and treatment and ensure the health of employees

Health Daily health check: Set up points for height weight and blood pressure measurement and provide daily

benefits first aid equipment and regular medicines so that employees can follow their health conditions in time

Including statutory holidays annual leave personal leave sick leave marriage leave bereavement

leave maternity leave paternity leave breastfeeding leave miscarriage leave childcare leave nursing

Vacation leave family visit leave etc. In 2024 Linhai Factory provided financial aid to 12 In March 2024 temporary assistance was provided to

benefits

employees in need totaling RMB12000 Zhongbang employees in need totaling RMB3000

Holiday benefits birthday benefits marriage benefits childbirth benefits employment anniversary

benefits employee benefits children's schooling retirement benefits etc.Care and

welfare

Filial piety fund honor incentives car allocation benefits housing loans

Special In April 2024 the labor union organized all employees The Jiaojiang Factory labor union established a file to help employees

benefits to donate money to an employee with cancer raising in need and provided financial assistance to 1 employee through the

a total of RMB30450 Golden Autumn Scholarship totaling RMB26500

8586

Help employees in needBuild a thriving team together Pool wisdom to power dreams

Case: Jack Sunshine Home was established to help disabled employees integrate Case: The activity of "Sending Flowers to Living Lei Feng" has been held for 12

into society consecutive years

Actively implementing employment support policies for the disabled we have

established the Sunshine Home equipped with functional areas such as As of 2024 Jack Technology had carried out the activity of

working area rehabilitation area and rest rooms offering daily care auxiliary "Sending Flowers to Living Lei Feng" for 12 consecutive years.employment and rehabilitation treatment services for disabled employees. "Lei Feng Day" has become the cultural IP of the Company.We also assign dedicated employees to teach them to do simple manual A total of 1867 flowers from Jiaojiang Headquarters Linhai

work provide them with free accommodation and pay social insurances Factory Xiachen Factory Taizhou Bay Factory Hangzhou

and housing provident fund for them ensuring that they have fixed monthly R&D Center Beijing R&D Center Xi'an R&D Center

income and guiding them to be strong independent dignified and disciplined. Shanghai R&D Center Wuhan R&D Center Jack Machine

They are also organized to watch movies and receive festival condolences Tools and Jiangxi Intelligent were sent out in 2024. The

living colorful spare time life. By the end of 2024 we had recruited more than flower-sending activity is of great significance in that it carries

90 disabled employees. In view of our outstanding performance in supporting forward Lei Feng's spirit. The initiative has brought delightful

the disabled we have been recognized by government leaders at all levels surprises and profound inspiration to employees embodying

in Taizhou city and Jiaojiang district and won the title of provincial "Advanced the spirit of "Living Lei Feng" to rekindle collective memories

Collective for the Disabled". and reflections on this iconic role model. By showcasing real-

life examples of selflessness it awakens the innate kindness

and dedication deep within individuals thereby inspiring a

Care for employees in every aspect of life Personalized rehabilitation training renewed commitment to altruism and social contribution.The cozy dormitories are equipped with soft beds Add multifunctional rehabilitation beds standing frames

tidy supplies air conditioning fans and other facilities balance bars walkers and other advanced equipment

to ensure comfort in all seasons to exercise limb functions

The c lean canteen prov ides nu t r i t iona l l y Professional rehabilitation therapists develop

balanced delicious meals every day taking into personalized training plans based on the individual

full consideration the dietary habits and needs of condition of each disabled person to help improve their Case: Annual Factory Anniversary Carnival & Outstanding Employee

employees with disabilities language and cognitive abilities. Commendation Ceremony

Convenient bathing facilities fully meet their daily

needs Building a barrier-free working environment

Every year Jack holds a factory anniversary carnival factory anniversary party and New Year's Day party with the participation

of all employees featuring rich activities wonderful programs and many prizes. At these events outstanding employees and

Case: visited disabled employees to demonstrate our sense of responsibility advanced teams in various fields are commended and invited to share the fruits of corporate development.On the 33rd International Day of Persons with Disabilities in December 2024 we organized special activities to show our warmth

and care by visiting and comforting disabled employees in various factories. The heads of the Company's factories sent gifts to

disabled employees to encourage them to be optimistic and self-reliant which demonstrated the Company's care and attention

to special employees.

87 88Build a thriving team together Pool wisdom to power dreams

Other employee care activities: Cultural and entertainment activities

In order to foster a vibrant united and harmonious work environment the Company prioritizes not only comprehensive employee benefits but

Attaching importance to the welfare of its employees the Company is committed to actively carrying out various types of employee care also actively curates diverse recreational and cultural activities. These initiatives are designed to empower staff in achieving sustainable work-

activities creating a warm working atmosphere and promoting the physical and mental health and career development of employees. life integration while enhancing collective well-being.Care for employees' health Case: organized cultural and entertainment activities to enrich employees’ lives

We continued to enrich the employees' spare time improve their comprehensive abilities enhance their sense of gain

happiness and belonging and inject vitality into the Company's development by holding a variety of activities such as annual

meetings traditional festival celebrations single employee gatherings and basketball games.Holiday care

Special care

8990

Festivals and Sports Employee interest

themed events competitions cultivationBuild a thriving team together Pool wisdom to power dreams

Democratic management and communication Key performance

The questionnaire response The overall satisfaction of the

In 2024 The Company issued rate was Company's employees was

In accordance with the relevant provisions of the Labor Law of the People's Republic of China the Trade Union Law of the People's Republic employee satisfaction

of China the Trial Measures for Collective Wage Negotiation the Regulations on Rewards for Rational Suggestions etc. we formulated and 6474 questionnaires 77.78% 91.42%

improved the democratic management system established a special committee for democratic management standardized the democratic

Compared with 2023 satisfaction Employees' confidence in the

management work built various forms of employee communication platforms unblocked democratic communication channels fully increased Company's future development was

mobilized the enthusiasm of employees regularly organized employee seminars and member meetings at all levels continuously iterated the

Company's system based on employee feedback conducted employee satisfaction surveys and effectively protected employees' rights to 4.67% 87.13%

know participate express and supervise thereby promoting the healthy development of the Company.Case: built a new democratic management mechanism and standardized democratic

management work

In October 2024 326 representatives In order to deepen democratic management of the enterprise build harmonious and stable labor relations and safeguard the

In December 2024 the Fourth Staff

In August 2024 the Fourth of the Sixth Employees' Congress legitimate rights and interests of both parties in labor relations the Company established a special committee for democratic

and Workers' Congress of Tuoka

Membership Congress of Bullmer' were elected the First Session of the management and further promoted the system of the Staff and Workers' Congress. The Committee works under the leadership

Benma' and Zhejiang Zhongbang'

and Zhejiang Zhongbang' Trade Sixth Staff and Workers' Congress of the Company's Party Committee and consists of 11 members including 1 director 3 deputy directors and 7 members. It is

Trade Unions was held to review

Unions was held to elect new of Jack Technology Co. Ltd. was mainly responsible for collective wage negotiations labor law supervision handling of employees' proposals and other matters

and vote on the Company’s various

members of the trade union team. held and 49 company systems were assigned by the Staff and Workers' Congress. The Democratic Management Committee is committed to protecting the rights

management systems.reviewed and approved. and interests of employees improving the Company's internal governance capabilities and decision-making transparency and

promoting the healthy development of the Company.Case: opened up an online complaint channel to collect employees’ opinions

In order to standardize the handling process of employees' suggestions and complaints and ensure that employees' opinions

and suggestions can be responded to quickly and effectively the Company's launched the Employees' Suggestions and

Complaints Process on its in-house platform. In 2024 a total of 69 processes were received. The handling results were

promptly fed back to the employees who made complaints or suggestions and the results of rectification were tracked regularly

to ensure that the problems were effectively resolved.The Company carries out democratic management activities

91 92Build a green homeland and contribute to the development of ecological civilization

Environmental compliance management Environmental protection laws and regulations

Environmental policies and

objectives

Jack Technology upholds the environmental vision that "environmental protection is the shared responsibility and mission of all Environmental management objectives and

indicators

humanity" and firmly adheres to the environmental management philosophy of "no emissions minimal emissions; preventing pollution List of important

reducing pollution and purifying the environment". With the goal of achieving "zero-emission" green production the principle of environmental factors

"eliminating pollutants at the source" and the commitment to "cleaner production" the Company formulated the Control Procedure Requirements of relevant

for Environmental Factor Identification and Evaluation the Control Procedure for Environmental Operation the Emergency Plan parties

for Sudden Environmental Events the Management System for Environmental Pollution Accidents and other rules and regulations.Starting from grasping environmental protection projects improving and optimizing production processes adjusting process flow layout Management plan for important

changing operation methods and controlling unorganized dust Jack Technology continuously optimized environmental management environmental factorsControl and implementation of

processes regularly conducted management reviews and environmental protection training and ensured that all activities in the project environmental factors Emergency plan for important environmental

development and production process met environmental protection requirements. Efforts were made to comprehensively promote factors in emergency situations

emission reduction and pollution reduction and to build a resource-efficient and environmentally friendly enterprise.Note: △ is the main monitoring Control effect monitoring of

environmental factors Improvement of environmental factorsand measurement point

Key performance Major honors

Environmental Management and Operation Control

Annual standardized solid Compliance rate of "three

waste disposal rate wastes" emissions Environmental training Key performance

100% 100% In order to enhance employees' awareness of environmental

protection the Company formulated the Management System In 2024 the Company's factories carried out

Environmental complaints Violations of environmental for Environmental Protection Training to standardize the content more than

and environmental incidents laws and regulations and assessment mechanism of environmental protection training.Not occurred Not occurred Through on-site lectures self-study video lectures and other

50 environmental protection training sessions

forms it vigorously carried out environmental protection training

The Company's safety and environmental

at all levels and popularized the Pollution Prevention and Control

protection staff training coverage rate reached

Law for Solid Wastes the Air Pollution Prevention and Control

The Company won The Company has achieved ISO 14001 Law the Water Pollution Prevention and Control Law and other

Environmental Management System certification 100%

"National Green Factory" title covering its subsidiaries Tuoka Benma

legal requirements and environmental protection knowledge

Zhongbang Electromechanical Jack Intelligent) to employees enhanced employees' environmental protection

awareness and effectively prevented and reduced the occurrence

of various environmental accidents and violations.Environmental governance framework

Green operation

The Company formulated the Control Procedure Supply Chain Department

for Environmental Operation and the environmental The Company vigorously promoted green operations and online

management assessment and incentive system Key performanceoffice. In 2024 more than 1000 carbon emission reductions were

incorporated environmental management goals into the Safety and

Environmental achieved through online meetings. It achieved paperless on-site

employee and management assessment system linked Management

Department inspections through APP reduced wood resource consumption The Company promoted green operations by

the achievement of goals with performance bonuses

Manufacturing implemented classified stacking of industrial and domestic waste vigorously advocating for remote work with virtual and job promotion and encouraged all employees Quality Department and cooperated with local environmental management departments meetings achieving a carbon reduction of over

to participate in environmental management. The Intelligent Operation and environmental supervision departments to strengthen internal

headquarters of the Company has set up the Safety Management

Department and external environmental awareness publicity and carried

and Environmental Management Department to 1000 metric tons annually

Purchasing out environmental protection activities with remarkable results

coordinate safety and environmental work. Each factory Management

is equipped with a safety and environmental manager Department

continuously contributing to creating green environment.to implement dual-line management and has set up Planning and Scheduling Department

hazardous waste warehouse managerial personnel Political Commissar and

and sewage station managerial personnel to ensure Process Management Department

that responsibilities are fulfilled. Through institutional Manufacturing External

guarantees and organizational implementation efforts Sales Management

Department

were made to promote continuous improvement of the

Company's environmental performance. Organizational structure of environmental management

9596

Control of transportation

maintenance and auxiliary processes

Control over resource consumption

Control of impact on stakeholders

Implementation of operational control

methods and guidelines

Jiehui Factory Safety and Environmental Officer

Jiangxi Jack Intelligent Technology Safety and Environmental Officer

Economical Auto-cutter Factory Safety and Environmental Officer

Hanger system Factory Safety and Environmental Officer

Smart Sewing Factory Safety and Environmental Officer

Jiaojiang Lockstitch Factory Safety and Environmental Manager

Motors and Electronic Control Factory Safety and Environmental Manager

Special Machines Factory Safety and Environmental Manager

Xiachen Factory Safety and Environmental Manager

Factory in the industrial cluster Safety and Environmental Manager

Foundry Safety and Environmental Manager

Parts Factory Safety and Environmental Manager

RegulationBuild a green homeland and contribute to the development of ecological civilization

Environmental risk management Aspects involved Recognition methods Adverse effects Prevention control and improvement measures

Product Designed strictly in accordance with national standards to

The Company comprehensively implemented environmental risk environmental ensure that product quality and safety comply with the Safety Product Quality Law customer Impact on life and

identification and control measures. For potential environmental protection and Technical Requirements and national standards; Control the complaints property

emergencies across all factories it formulated the Emergency safety selection of product parts materials control material properties

and strictly follow high standards when designing products

Response Plan for Sudden Environmental Incidents and the

Management Regulations for Environmental Pollution Accidents The Company formulated the Control

systematically monitored and assessed latent environmental risks. Procedure for Environmental Factors 1. Implement ISO14001 management systemEnvironmental

Through multi-format safety inspections the Company thoroughly Identification and Evaluation and the 2. Operate wastewater treatment equipment to centrally treat pollution caused

Environmental Environmental Factors Survey and wastewater and ensure it meets compliance standardsinvestigated environmental hazards and promptly took effective by sewage

protection Evaluation Form to identify and control 3. Update environmental protection devices to improve measures to prevent and mitigate the environmental impact of wastewater waste all environmental factors that may be workshop environment

emergencies. In addition the Company regularly conducted gas noise and involved in the process of providing 4. Install soundproof glass in some areassolid waste

environmental emergency drills for employees to improve products and services and on related 5. Entrust a professional qualified company to treat solid waste

emergency response capabilities ensuring that environmental risks occasions.were systematically managed and the stability and sustainability of 1. Introduce clean production projects

production operations were guaranteed. 2. Reduce resource consumption save energy and improve

Energy High energy the environment through process improvement

conservation and consumption Energy consumption indicator 3. Eliminate the original cleaning line and build a new energy-

waste of resources

Identification of major environmental factors comprehensive monitoring; waste recycling and water saving cleaning line

utilization of and occupation recycling 4. New low-loss transformer

resources of social public 5. Save electricity by improving lighting

The Company formulated the Identification and Control Procedure for Environmental Factors and the Management Regulations for resources 6. Implement energy conservation and consumption reduction

Environmental Testing established an environmental factor and hazard source evaluation team followed the "hazard identification - and strengthen the recycling of water electricity and gas

implementation of control - safety evaluation - continuous improvement" cycle management model to identify and control various environmental

factors that may arise in product production service provision and related activities conducted quantitative analysis of major hazard sources Public health Environmental hygiene and prevention Potential risks to Implement the 'Emergency Response Plan' to control

of infectious diseases public health

took effective control and governance measures and systematically managed safety risks.Major environmental factors and hazard source control measures

Relevant laws regulations and Re-investigate identify and

standards evaluate when necessary Environmental emergency drills

Activities products and Investigation of relevant activities Environmental impact Identification of major

services and process environmental factors assessment environmental factors

In order to enhance employees’ ability to cope with environmental risks the Company formulated an environmental emergency plan and

Requirements of relevant parties Approval of major List of major environmental environmental factors factors organized multiple environmental emergency drills to ensure that employees can promptly identify and properly handle environmental

emergencies.Note: △ is the main monitoring

and measurement point

Identification and evaluation process for environmental factors Key performance

In 2024 the Company completed Organized and participated in Trained

Control of hazard sources

The Company formulated documents such as the Control Procedure for Identification and Evaluation of Hazard Sources and the Management 2 29 environmental emergency drills 580 employees

Regulations for Risk Identification Evaluation and Grading Control to comprehensively identify evaluate and control hazards to ensure that comprehensive emergency drills including

production activities were safe and controllable. solid waste dispersion sewage leakage

hazardous waste leakage etc.Laws regulations Periodic re-identification

standards and other Biodiversity conservation

requirements

Risks of Level 2 and

below

Identification of hazard Determine target Jack Technology actively practiced its corporate social responsibility in biodiversity conservation and minimized the impact of production Information of hazard Assessment of hazard

sources sources sources indicators and management plans activities on the ecological environment through technological innovation and scientific management. The Company strictly abode by relevant

Risks of Level 3 and laws and regulations on ecological protection paid attention to ecological balance in project development and operation and avoided damage

Specific information of below to natural habitats. During the production process efforts were made to reduce interference with the surrounding ecosystem by optimizing

related parties

process flow reducing waste emissions and promoting green factory construction. In the future the Company will continue to deepen the

Identification and Assessment Process of Hazard Sources application of technology explore more solutions to support biodiversity conservation and contribute to protecting the earth's biodiversity.

97 98Build a green homeland and contribute to the development of ecological civilization

Cleantech opportunities Green design

Guided by the goal of reducing the impact on the environment and providing sustainable development the Company formulated documents

Jack Technology adopted green and low-carbon development as its such as the Related Notices the Management Regulations for Suppliers and the Supplier System Inspection Checklist. The Company

core strategy leveraging technological innovation systematic equipment established a comprehensive management system for raw and packaging materials vigorously promoting green packaging. By optimizing

upgrades and green initiatives to advance the R&D and application supply chain management adopting eco-friendly materials and implementing energy-saving technologies we actively advanced product

of carbon reduction technologies. By optimizing resource efficiency green design to deliver sustainable packaging that met consumer expectations. While ensuring product quality we optimized packaging

and reducing carbon emissions the Company provided innovative materials to reduce resource consumption and environmental impact advancing the Company's sustainable development.sustainability solutions reinforcing its leadership and commitment to

the green transition while supporting China's carbon peak and carbon

neutrality goals. Key performance

The packaging of a single sewing machine can save Reduce grams of polystyrene

Carbon reduction technology research and development 120 grams of double-layer corrugated paper 740

The Company established and implemented policies for carbon peak & neutrality energy conservation and efficiency management. Through

energy-saving equipment adoption process optimization and green design we comprehensively advanced low-carbon initiatives to reduce

emissions and accelerate our green transition. Green innovation

The Company has always regarded green innovation as an important driving force for sustainable development fully implemented the concept

of green production and actively fulfilled its environmental protection responsibilities promoting the widespread application of energy-saving

and environmental protection technologies through technological research and development and equipment upgrades and continuing to lead

Plastic spraying process optimization Application of No-bake Technology the green transformation in the industry.Optimize the spraying process of the sewing Bake-free assembly glue and sealing materials were

Servo motors and motor control systems

machine housing and cancel the inner cavity introduced to eliminate the high-temperature baking

spraying step of the original process. The Company successfully applied frameless direct-drive permanent magnet motors (including energy-efficient

models) along with matching sensorless servo control technology utilizing field-oriented control (FOC). This

Reduce the spraying area by 40% significantly Curing time was reduced to less than 40 minutes.innovation has been implemented in our industrial sewing machines with remarkable energy-saving results.reduce carbon emissions and improve production

efficiency.Smart sewing technology

The Company actively developed intelligent sewing equipment applied technologies such as the Internet of

Things intelligent control and sensor visual recognition systems to sewing machines and upgraded traditional

sewing products into automatic sewing units leading the development direction of intelligent sewing equipment.Built-in application

Research and development of new low-temperature The innovation integrates built-in frameless motor technology clean sewing processes and IoT-enabled solutions.Promotion of advanced baking technology powder coatings These applications can save more than 30% of electricity and more than 40% of sewing machine threads every

year effectively extending the service life of sewing machines.Advanced technologies such as infrared baking The development of low-temperature powder coatings

and nano baking was promoted to replace the reduced energy consumption while reducing carbon

existing natural gas baking and curing powder emissions setting a benchmark for green production. Energy-saving ironing table

process. Energy utilization efficiency was

The baking temperature of spray powder coating was The Company cooperated with Huazhong University of Science and Technology to develop energy-saving improved to provide strong support for circular

successfully reduced from 200°C to 165°C reducing ironing tables.economy and sustainable development.natural gas energy consumption by 30%. The research and development of energy-saving ironing tables has increased energy utilization efficiency by 45%. A

single ironing table can save 1800 kWh of electricity per year. The product passed the inspection of the National Center

for Quality Inspection of Sewing Machines and was named "New Industrial Product in Zhejiang Province" in August 2023.Green innovation practice

99 100Build a green homeland and contribute to the development of ecological civilization

Combating climate change President

Regulation

In response to the country's "dual carbon policy" Jack Technology formulated and implemented climate change response plans and climate

transformation plans to meet the challenges of climate change striving to achieve carbon neutrality by 2060 based on its energy use carbon Energy utilization Leading Collaborative

emissions status and strategic development plans. The Company continued to contribute to global climate governance by practicing the concept management departments departments

of energy conservation and emission reduction promoting the application of clean technologies and improving resource utilization efficiency.Data analysis Resource usage Supply Chain detection Marketing Department

Quality Process IT Public Relations

Department Department Department

Strategy and Financial Human Resources

Investment Management Department

Management Department Department

Organizational Structure of the Energy Utilization Management Committee

Use of clean energy Accurate energy allocation Carbon emissions monitoring

The implementation of distributed Foundries in the industrial cluster The operational carbon emissions

Fuel (liters) Natural gas (cubic meters)

photovoltaic power generation implemented photovoltaic energy of each unit were monitored and

has significantly reduced CO integration to reduce electricity carbon emissions data were 2024 244545 2024 1100248

emissions. consumption specifically targeting summarized and reported on a

The Company cont inued to high-power equipment and energy- regular basis 2023 228587 2023 1656352

expand its distributed photovoltaic intensive processes

202228191220221648041

infrastructure further increasing

the utilization rate of green energy

across operations.Electricity (MWh) Renewable electricity (MWh)

Actions taken in 2024 to achieve the dual carbon goals 2024 168470 2024 17501

2023125561202313954

Efficient use of energy 2022 101024 2022 9972

In order to strengthen energy management reduce energy consumption and improve energy utilization the Company formulated a number

of regulations including the General Principles of Energy Management the Energy Management Responsibilities the Energy Consumption

Assessment Methods the Management Regulations for Raw Materials and Power Consumption Quota and the Management Regulations for

Rational and Economical Use of Electricity in accordance with relevant laws and regulations energy policies and management standards and in Optimization Optimize the iron chip collection process in the metalworking workshop. By centrally managing iron filings

combination with the actual production and energy consumption conditions. It established an energy-saving leadership group to be responsible of iron chips and placing them in a designated area in the workshop forklifts can collect them in one go significantly

for energy management formulated and approved energy management systems and measures supervised employees' implementation collection and reducing the number and duration of forklift operations reducing energy consumption and carbon management

increased the proportion of energy efficiency assessment and the intensity of rewards and punishments and enhanced employees' energy-saving emissions and improving production efficiency.awareness through internal publicity and standardized the energy use process across the Company. All this helped achieve efficient energy

management and promoted the achievement of energy conservation and emission reduction goals.Real-time cloud The air compressor cloud monitoring system was launched to monitor gas consumption equipment status

Key performance monitoring of air and air pressure data in real time effectively reducing energy waste and saving 570000 KWH of electricity

compressors per year providing an intelligent solution for efficient energy utilization.During the reporting period the Company actively implemented various energy-saving and carbon-reduction

measures strictly managed energy consumption carried out reliable and accurate measurement improved energy

utilization efficiency and reduced energy consumption. During the reporting period the Company's comprehensive Online

22377.87 monitoring on The Company monitored the usage of all transformers online and combined them with energy storage energy consumption was tons of standard coal the energy intensity was 0.04 tce/10? yuan the Energy IoT equipment to maximize resource utilization.

revenue the total greenhouse gas emissions (scope 1 + scope 2) were 2119662.54 tons of carbon Platform

dioxide equivalent and the annual plan was to save 5.054 million kWh of electricity. In the next year the

Company's electricity consumption will decrease by 3% year-on-year.Energy efficient utilization and management measures

101 102Build a green homeland and contribute to the development of ecological civilization

Clean production and use of clean energy Case: Digitalization empowers green smart factories and achieves energy delicacy management

The Company deployed an advanced digital energy management system to achieve comprehensive real-time monitoring of

Jack Technology attaches great importance to clean production and actively responds to government deployment. Based on the Audit Manual the energy consumption and equipment operating status of the entire factory. The system can display equipment status energy

for Enterprise Clean Production and the Audit Methods for Clean Production the Company established a clear concept of clean production consumption data and photovoltaic power generation efficiency in real time helping managers to accurately grasp energy

standardized clean production audit work and achieved sustainable development of environmental economic and social benefits. At the same consumption and optimize energy use. By monitoring the conversion efficiency and use of clean energy (such as photovoltaic power

time the Company regarded the use of clean energy as an important measure to promote green production and sustainable development. generation) the Company significantly improved the utilization rate of clean energy. By combining virtual manufacturing and AI

Through technological innovation and management optimization it comprehensively promoted the use of clean energy such as solar energy prediction technology the Company further optimized energy configuration reduced energy consumption costs and provided support

and natural gas significantly reduced carbon emissions and alleviated environmental pressure. for decision-making through data performance analysis thus promoting the sustainable development of green smart factories.Key performance

In 2024 the Company's use of clean energy Use of solar energy accounted Use of natural gas accounted

accounted for for for Case: Deploying an advanced energy storage system to achieve efficient energy management

7.04%50.86%49.14%

The Company achieved efficient and intelligent energy

management by deploying an advanced energy storage

system. The system uses PACK built-in BMU to monitor the

Solar energy (MWh) Natural gas (cubic meters) cell voltage and temperature in real time and forms a two-

level control architecture with BMS to ensure safe and efficient

20241281520241100248

operation of the battery pack. Through intelligent scheduling

2023 10043 2023 1656352 the system discharges during peak electricity hours to reduce

electricity costs. At the same time it participates in the grid

2022 8418 2022 1648041 frequency regulation service to create additional revenue

significantly improves energy utilization efficiency while

achieving both economic and environmental benefits.Case: Promoting green factory construction and promoting sustainable development

During the reporting period the Company deployed a total

In order to practice the development philosophy of "green low-carbon and smart" the Company is actively committed to promoting of 41 energy storage cabinets each with a power of 100KW.the construction of green factories. The Company vigorously developed photovoltaic power generation projects and added distributed The total system power reached 4100KW the total electricity

photovoltaic facilities. It adopted the green energy utilization model of "photovoltaic power generation + electric energy storage" to was 4200KWh and the estimated annual income was RMB

continuously carry out technological innovation and application optimization. Due to site limitations photovoltaic power generation 4.1 million. The income mainly came from various application

only accounted for 10% of the total electricity. However the introduction of photovoltaic power generation projects played a significant scenarios such as peak-valley electricity price arbitrage grid

positive role in reducing carbon emissions and alleviating environmental pressure and greatly increased the proportion of use of frequency regulation and backup power supply.clean energy. In the future the Company will further increase the utilization rate of green energy promote the optimization of energy

structure ensure that the power factor meets the standards continue to uphold the concept of green development and continuously

advance environmental protection practices.Key performance In 2024 the Company's total installed photovoltaic capacity in the factory area reached 13.93 MW with

an additional energy storage capacity of 4000 KW photovoltaic power generation of 17.5015

million kWh usage of 150968510 kWh clean energy accounting for 7.04% of total energy and

carbon emissions reduced by 14500 tons of carbon dioxide equivalent.

103 104Build a green homeland and contribute to the development of ecological civilization

Climate change management

The Company established a complete management mechanism for responding to climate change and followed the Energy Management Identification of climate risks and countermeasures

Responsibilities the General Principles of Energy Consumption Management Regulations the Gas Management System the Management

Regulations for Reasonable Electricity Use and Electricity Conservation and other systems to systematically respond to climate change. Led by

senior leaders and coordinated by core departments a sustainable development committee was established and independent positions were set The Company assessed climate adaptability through scenario analysis simulated operating conditions under different policies technologies and

up to use intelligent systems to supervise carbon emissions and energy consumption to ensure that violations were corrected in a timely manner. market conditions and flexibly adjusted strategies to maintain product competitiveness. Through systematic climate change management the

Company effectively reduced climate risks provided innovative solutions for the industry's green transformation and demonstrated its leadership

President and sense of responsibility in addressing climate change.Regulation

Short-term Mid-term Long-term

Climate Governance Low Carbon Data and Compliance

Committee Operation Group Platform Focus on optimizing production Continue to invest in research and Become a leading enterprise in the

Strategy and Investment International Business Supply Chain Product processes and reducing energy green and environmentally friendly

Management Department Department Department Department Quality Process IT

Public Relations development launch a series of green

Department consumption and quickly respond to products expand business areas and transformation of the industry build a

the market's initial demand for low- complete low-carbon industrial chain

Financial Management International Business Human Resources increase market share

Department Department Department carbon products and achieve sustainable development

Organizational Structure of the Company's Climate Change Strategy Committee Formulate business model adjustment strategies to adapt to climate change at different stages

Climate Change Management System

Climate Transition Plan

The Company established an integrated climate risk monitoring and reporting system to integrate climate-related risks with other risk information

and achieved centralized management and sharing of risk data. Climate risk management status was reported to the management and the Board The Company deeply practiced the green and low-carbon concept actively built a sustainable and recycling model integrated sustainable

of Directors regularly to provide a basis for strategic decision-making. The Board of Directors regularly monitored climate response strategies development into every link of production operations reduced its own carbon emissions through technological innovation and digital means

and results and controlled the progress of major projects. The management formulated implementation plans based on the Board of Directors’ comprehensively promoted greenhouse gas (GHG) emission reduction actions and contributed to the realization of sustainable development.strategies promoted energy conservation and emission reduction technological research and development and employee training to ensure the

efficient operation of the management mechanism.Deep

Green and low- application of Staff

carbon product green technology training and

Management of climate change risks and service and digital motivation

innovation transformation

The Company attaches great importance to the impact of climate change on strategy operations and finance. Based on the framework of the

International Standards for Sustainable Disclosure of Financial Reports No.2 - Climate-related Disclosure (IFRS S2) issued by the International Relying on its technological accumulation The Company continued to promote digital The Company strengthened employee

Sustainability Standards Board (ISSB) the Company systematically identified climate risks and formulated response measures to reduce the and innovation capabilities the Company and intelligent transformation developed training and education to enhance all

negative impact of climate change and ensured the stability of business operation. launched resource-renewable energy- innovative technologies such as slump employees' awareness and execution

saving and environmentally friendly detection AI intelligent unloading system capabilities of climate strategy and

Establishment of a sustainable Optimize supply chain management Improve the comprehensive risk machinery and equipment and created and wastewater recycling and applied them ensured the effective implementation of development strategy promotion team management system overall solutions for green circular building to metal processing significantly reducing the Climate Transition Plan.To ensure the effective implementation The Company incorporated climate materials promoting the transformation the carbon emission intensity in the blank The Company established a special

of the climate strategy the Company and upgrading of the construction industry production process. reward mechanism to encourage The Company gave p r io r i t y to risks into its comprehensive risk

established a sustainable development towards a green and low-carbon direction The negative carbon laboratory was employees to actively participate working with low-carbon suppliers to management system formed a closed-

strategy promotion team formulated and helping the entire industry reduce established to bring together professional in energy conservation emission jointly carry out energy-saving and loop management of "identification -

and supervised the implementation plan carbon emissions. talents and advanced equipment focusing reduction and green innovation so as emission reduction projects optimized assessment - response - improvement" on the research and development and to jointly promote the realization of its

strengthened employee training and set logistics transportation and operations def ined i ts vision and goals for application of cutting-edge energy-saving sustainable development goals.up a special reward fund to encourage management and reduced carbon sustainable development and promoted and carbon reduction technologies providing

all employees to participate in climate emissions in the supply chain. low-carbon transformation of i ts the industry with comprehensive efficient

risk management and sustainable business. and environmentally friendly solutions and

development work. promoting the sustainable development of

Management measures for climate change risks the industrial chain.Implementation measures for the Climate Transition Plan

105 106Build a green homeland and contribute to the development of ecological civilization

Case: Responding to climate change risks - the construction and practice of the Company's

typhoon emergency response mechanism Energy conservation and emission reduction practices

The Company has always regarded energy conservation and emission reduction as an important measure for sustainable development and

The Company's main production base is located in the coastal area of Taizhou Zhejiang. The area is exposed to climate has comprehensively promoted efficient resource utilization and environmental protection through technological innovation equipment upgrades

change risks all year around such as typhoons and strong winds heavy rains and storm surges caused by typhoons. To deal and green energy applications. In the process of environmental protection practice the Company actively adopted non-toxic and harmless green

with these potential threats the Company established a comprehensive typhoon emergency response mechanism and further raw materials and environmentally friendly new materials broke through key technologies and promoted green design. At the same time the

reduced risks by purchasing insurance. Company used smart equipment and intelligent connection solutions to improve the production efficiency of downstream industries reduced

resource waste striving to achieve a win-win situation of economic and environmental benefits.Analysis of historical data

According to historical records a total of five typhoons have had a significant impact on the area where the Company is Key performance

located in the past 50 years. Among them three typhoons made direct landfall in the area namely Typhoon No. 23 in 1989

Typhoon No. 9 “Matsa” and Typhoon No. 15 “Khanun" in 2005. There were two other typhoons that did not make direct landfall In 2024 the Company's employee transportation The proportion of new energy new energy-savingbut still had a significant impact on the local area. They were "Yunna" in 2004 and "Lekima" in 2019. Statistics show that on emissions was approximately forklifts increased to industrial fans were added

average the area where the Company is located encounters a significant typhoon every 10 years.Among them Typhoon Lekima in 2019 was the most recent typhoon event that had a significant impact on the local area but it 0.89 tons of carbon dioxide per person 39.3% 10

had limited impact on the Company's overall operations and financial condition.Finally the Company effectively reduced the impact of typhoons and other climate change risks on production and operations

by building a typhoon emergency response mechanism and purchasing insurance. This practice not only reflected the

Company's foresight in risk management but also provided valuable experience for other enterprises in coastal areas. In the

future the Company will continue to optimize its climate risk management system further enhance its ability to respond to Elimination of high-energy-consuming equipment: The Company gradually eliminated old and high-

extreme climate events and provide solid guarantees for sustainable development. Equipment energy-consuming equipment and introduced high-efficiency and energy-saving production machinery

upgrade significantly reducing energy consumption. For example the Dongfeng line saved a lot of electricity costs

and process by optimizing energy-saving modes and reducing equipment standby energy consumption.optimization Improvement of production technology: The Company made fine improvements to production technology

optimized the production process reduced resource waste and improved energy efficiency.Promotion of new energy forklifts: In 2023 the Company had 58 forklifts of which 21 were electric forklifts

and new energy accounted for 36.2%. In 2024 3 new battery forklifts were added and the proportion of

new energy forklifts increased to 39.3% further reducing the use of fossil energy.Green energy Energy-saving and cooling equipment: The Company encourages the use of energy-saving industrial

application fans instead of air conditioners. In 2024 10 new industrial fans were added to significantly reduce energy

and equipment consumption.improvement Energy transformation of the plastic spraying workshop: The Company gradually phases out diesel

heating equipment. It explored biomass pellet fuel in 2015 and fully transformed to natural gas in 2020

significantly reducing carbon emissions.Building the Supplier Industrial Park: By building a supplier industrial park the Company optimized supply

chain management reduced transportation costs promoted technological innovation and resource sharing

and contributed to the sustainable development of the regional economy.Green Procurement Policy: The Company formulated the Supplier Management Regulations gave priority

to cooperating with low-carbon suppliers promoted the green transformation of the supply chain and

Supplier reduced carbon emissions.collaboration Supplier qualification review: The Company formulated the Notice to Relevant Parties defined the

and green requirements for energy conservation and emission reduction constrained suppliers through the SRM system

procurement promoted their transformation and achieved scale effects of energy conservation and emission reduction.Supplier information management: The Company carried out online data management defined the VMI

operation and management model set a reasonable delivery cycle for suppliers reduced unnecessary

transportation actions and carbon emission behaviors in transportation and realized the scale effect of

energy saving and emission reduction across supply chains.Energy The Company used the energy management system to monitor and analyze energy consumption in real

management time accurately located energy waste points and achieved rational allocation and efficient use of energy

system through regulation. For example the Company adjusted equipment operating time and power in time to

application reduce unnecessary energy consumption.Practical measures for energy conservation and emission reduction

107 108Build a green homeland and contribute to the development of ecological civilization

Pollution emission control Treatment of waste gas

Jack Technology formulated and improved the Management Regulations for Environmental Testing and the Management Regulations for

Environmental Pollution Accidents and other systems. Through measures such as improving design using clean energy and raw materials The Company standardized the management of waste gas emissions generated by the production workshops of each factory introduced

and adopting advanced processes and equipment it reduced or avoided the generation and emission of pollutants in the production process. It advanced equipment optimized treatment processes and comprehensively improved the level of waste gas treatment.rewarded employees who performed well in pollution control and emission reduction and continuously standardized the information reporting

procedures and emergency response processes for sudden environmental accidents to prevent environmental pollution accidents and improve Nitrogen oxide (NOx) Volatile organic compounds Particulate matter (PM) Total exhaust emissions

the level of pollution emission control. emissions (VOCs) emissions emissions

Unit Kg Kg Kg 10000 cubic meters

Key performance

Jiaojiang Factory 314 82 1334 11232

In 2024 the number of times the Company's factories' wastewater and air emissions did not meet the requirements

Xiachen Factory 0.21 0 1048.78 5280

was 0 the number of times the noise exceeded the standard was 0 and the standardized disposal rate of general

100% Jack Intelligent 2236.20 2337.64 9384 421752industrial solid waste and hazardous waste reached . No environmental complaints or major hazardous

chemical leakage accidents occurred during the reporting period. During the reporting period the Company Tuoka Benma 136 929.88 2477 2043

Jack Technology

conducted commissioned monitoring more than 140 times and the monitoring frequency and results were in Casting 0 0 25925 52758

compliance with the requirements of the Pollutant Discharge Permit. Statistics on air pollutant emissions from the Company's factories in 2024

Case: Introducing an oil mist collection system to optimize the waste gas treatment process

Wastewater treatment

In the oil mist management of the metalworking workshop the Company introduced an oil mist collection system to effectively reduce

The Company managed wastewater discharge in compliance with regulations installed water meters in each workshop to implement daily water the oil mist emissions generated by processing equipment during high-deep cutting. The system collects oil mist centrally and converts

consumption measurement controlled sewage treatment and invested in the construction of sewage treatment stations to separate rainwater and it into liquid for post-treatment significantly improving workshop air quality protecting employee health and reducing medical costs and

sewage ensuring that sewage discharge complied with local water pollution prevention and control regulations and wastewater pollution to the production losses that may be caused by health problems.environment was reduced. As of December 2024 all production lines had been fully equipped with oil mist collection systems the workshop environment had been

significantly improved employee work efficiency had been raised and waste gas emissions had been greatly reduced. The introduction

Chemical oxygen Ammonia nitrogen Total nitrogen Total phosphorus Total wastewater

demand (COD) content (NH3-N) content (TN) content (TP) discharge of the oil mist collection system not only created a safe and healthy working environment for employees but also further improved the

Company's pollutant control level reflecting the Company's continuous efforts in environmental protection and demonstrating its sense

Unit Kg Kg Kg Kg 10000 cubic meters of social responsibility.Jiaojiang Factory 10.02 0.10 2.39 0.02 0.04

Xiachen Factory 96.2 0.91 22.94 0.17 0.43

Jack Intelligent 168.06 3.45 46.48 0.73 0.77

Tuoka Benma 46.63 0.31 9.15 0.12 0.22

Statistics of industrial wastewater discharge from the Company's factories in 2024

Case: Optimizing wastewater treatment solutions to promote green production

The Company's high-end sewing equipment intelligent manufacturing center built in Jiaojiang District achieved efficient wastewater Case: Optimizing the coating process to achieve zero VOCs emissions

treatment through scientific planning and advanced technology. The wastewater of the project mainly came from the degreasing

cleaning silanization phosphating and other links in the production process. The pollution factors included COD total nitrogen total The original plastic spraying production line produced a certain amount of VOCs which needed to be treated with activated carbon

phosphorus fluoride etc. Therefore the "oil separation adjustment + coagulation sedimentation + A2/O" process was adopted to ensure adsorption and desorption catalytic combustion equipment. Therefore the Company optimized the coating process. The optimized

that the wastewater met the municipal sewage network connection standards after treatment. The design followed the principle of high- electrostatic powder spraying production line process produces almost no VOCs achieving the goal of reducing VOCs emissions from

starting-point planning and high-standard construction and adopted imported control and testing instruments with stable performance the source and completely solving the VOCs emission problem. After the powder is recovered and dusted the exhaust gas generated

to ensure the stability and efficiency of the system. In addition the Company also paid attention to the rationality of equipment selection meets the indoor emission standards and the exhaust gas is not directly discharged into the external environment. After the electrostatic

and layout adopted intelligent automatic control systems realized functional zoning facilitated operation and management and powder spraying line was put into use no hazardous solid waste such as paint residue and waste paint cans was generated achieving

achieved standard sewage discharge. a win-win situation of economic and environmental benefits.

109 110Build a green homeland and contribute to the development of ecological civilization

Case: Waste gas was treated in Jiaojiang factory to promote clean production Management of hazardous wastes and chemicals

In order to achieve standard exhaust gas emissions the Company's Jiaojiang factory designed optimized and modified the original The Company strictly implemented national hazardous waste management requirements and through the Management Regulations for Solid

exhaust gas treatment plan. The project treated waste gas generated by spraying plastic spraying grinding and other processes to Wastes conducted full-process control over the storage transportation use and disposal of hazardous solid waste reduced the environmental

ensure that the treated waste gas complied with relevant pollution emission standards such as the Emission Standards of Air Pollutants impact of hazardous waste and provided solid guarantees for green production.from Industrial Coating Processes and the Comprehensive Emission Standards of Air Pollutants. Through closed collection water

spraying filter cartridge dust removal and other technologies particulate matter and volatile organic compounds in exhaust gas can be

effectively removed. At the same time the factory installed high-efficiency fans and spray towers to optimize the exhaust gas treatment

process and to reduce energy consumption and operating costs. In 2024 the factory's waste gas treatment system operated stably

with an emission compliance rate of 100% significantly improving the air quality in the factory and its surrounding areas.Coating process

Spraying water curtain Spray tower Fan 25m high altitude discharge waste gas meets the standard

Storage of hazardous waste Transportation of hazardous waste Disposal of hazardous waste

Spray coating

waste gas Plastic spraying table

Filter cartridge dust Fan 25m high altitude discharge

removal meets the standard In strict accordance with national Use safe and compliant transportation The Company cooperated with

regulatory requirements warehouses methods to ensure that hazardous qualified third parties and signed

Grinding

exhaust gas Grinding table Cartridge dust removal Fan

25m high altitude discharge for storing hazardous waste were w a s t e d o e s n o t l e a k d u r i n g hazardous waste disposal contracts

meets the standard

set up in each factory to ensure the transportation further reducing the to ensure the compliance of the

Process Flow Chart for Waste Gas Treatment in Jiaojiang Factory safe storage of hazardous waste and impact on the environment. treatment of hazardous waste.reduce the impact on the environment.Management process for hazardous solid waste

Solid waste management

Case: Reducing the use of toxic and hazardous raw materials and improving environmental management

The Company formulated the Management Procedure for Solid Wastes to implement full process control of solid waste from generation In order to reduce the use of toxic and hazardous substances reduce pollution emissions from the source and promote its

collection storage transportation utilization and disposal. It disposed of hazardous waste by signing disposal contracts with qualified third parties environmental protection level the Company put forward rectification suggestions for suppliers who did not meet the supply

strictly controlled hazardous waste prevented solid waste from polluting the environment and realized the resource utilization harmlessness and requirements. For suppliers who failed to comply with or refused to rectify and may cause serious environmental pollution accidents or

reduction of various types of solid wastes. major safety accidents the Company took measures such as reducing orders and replacing suppliers to exert influence.Total amount of non-hazardous Total amount of hazardous Key performance As of the end of 2024 the Company had a total of 243 main suppliers 103 of whom held ISO14001

waste waste Total waste generation

system certificates accounting for 42.39% an increase of 4.39% compared to 2023.Unit Tons Tons Tons

Jiaojiang Factory 1473.89 134.25 1608.14

Xiachen Factory 763.55 51.37 814.92

Jack Intelligent 1345.95 153.08 1499.03 Case: Standardizing the management of dangerous goods warehouses

Tuoka Benma 54.33 52.43 106.77 To ensure production safety the Company implemented strict and

standardized management of hazardous goods warehouses. In

Statistics on air pollutant emissions from the Company's factories in 2024 accordance with relevant laws and regulations the Company formulated

a complete dangerous goods management system covering storage

use transportation and emergency response. The warehouse is

Iron powder briquetting Recycling of waste packaging barrels equipped with explosion-proof lighting fixtures and a ventilation system to

ensure a safe environment. Dangerous goods were stored in categories

and clearly labeled with dedicated personnel responsible for daily

The Company used briquetting machines to briquette iron The Company signed a recycling agreement with suppliers inspections and record keeping. Through standardized management no

powder to reduce the risk of dispersion and ensure the safe to recycle and reuse waste packaging barrels significantly safety accidents occurred in the Company's warehouse for hazardous

storage and transportation of solid wastes. reducing the generation of waste packaging barrels and materials which provided solid guarantees for production operations and

promoting resource recycling. demonstrated the Company's high attention and sense of responsibility

for hazardous materials management.General waste discharge and reduction management

111 112Build a green homeland and contribute to the development of ecological civilization

Efficient use of resources

Taking circular economy as its core strategy the Company

optimized production processes invested in the construction of

advanced sewage treatment facilities established an internal

resource recovery system and promoted green procurement and

the efficient use and recycling of resources reduced environmental

pollution and production costs and laid a solid foundation for its

sustainable development.Water resource utilization

Attaching importance to water resource management the Company implemented the water-saving concept of multiple uses and recycling of

water formulated the Management Regulations for Rational Use of Water took a number of measures to reduce water resource consumption

and comprehensively promoted the efficient management and recycling of water resources.Total Fresh water consumption (tons) Water resource usage intensity (ton/RMB10000 revenue)

Key performance 2024 498418 2024 0.81

202344606220230.84

In 2024 the Company used a total of The circulating water volume was

202243330820220.79

4261418 tons 3.763 million cubic meters

The recycling rate reached Application of water-

saving equipment The headquarters' administrative building was equipped with a constant pressure water saver reducing

88.3% water consumption by 50%. It is expected to save 800 cubic meters of water throughout the year.The pre-degreasing retention tank was equipped with a water circulation filter to quickly filter impurities every

day extending the service life of the tank saving 25% of water consumption and increasing the service life

of the tank and cleaning stability.Water resource circulation system: build advanced sewage treatment facilities to purify production

wastewater and reuse it for workshop cleaning equipment cooling and other links after it meets production

President water standards greatly reducing the amount of fresh water used alleviating the water pressure caused by

production expansion and reducing costs for water consumption.Regulation

Strategic decisions Technical Regional coordination Eliminating the reamer cleaning process can save 50 tons of water per month.Implementation Group Process Optimization The surface treatment process was changed from immersion to spraying reducing water consumption by

Strategy and Decision Financial International Business Public Relations 50% and silane consumption by 15%.Supply Chain Product

Management Management Department Department A centralized cutting fluid management station was established in the workshop equipped with high-

Department Department

Department Department General Manager's precision filtration equipment to achieve recycling of cutting fluid saving 3000-4800 cubic meters of water

Office each year.Organizational Structure of the Water Resources Utilization Management Committee

Water-saving technology practice

113 114Build a green homeland and contribute to the development of ecological civilization

Circular economy

The Company incorporated the concept of circular economy into its development strategy established an internal resource recycling system Case: Reducing the amount of sewing machine blanks and effectively reducing raw material consumption

optimized production processes and promoted green procurement and the efficient use and recycling of resources and minimized resource waste

and environmental pollution.In order to respond to the call for environmental protection reduce

Total mass or volume of materials used in production and Recycling rate of materials used in production and resource waste and lower carbon emissions the Company improved

packaging (tons/cubic meters) packaging (%) the production and processing flow of sewing machine blanks. By

optimizing drawing design reducing the initial processing allowance

2024 5834.4 2024 95 of blanks and using mold repair to control blank allowances the

2023 5577 2023 94 Company effectively solved the problems of large processing

allowances in traditional processes large energy consumption and

2022 5434 2022 92 carbon emissions in subsequent processes. After mold repair the

average weight of the A5E-A case blank was reduced by 0.18 kg. The

improvement in the allowance of sewing machine blanks enabled the

Including: use of non-renewable materials (ton/cubic meter) Including: production material recovery rate Company to achieve significant economic benefits in raw material and

tool consumption reduce production costs increase profit margins

20242203.2202495

reduce resource waste and carbon emissions and further improve

2023 2106 2023 94 production efficiency laying a solid foundation for the Company to

achieve the goals of green manufacturing and circular economy.

20222052202292

Including: use of renewable materials (ton/cubic meter) Including: packaging material recycling rate

Case: Promoting the supplier standard turnover boxes and helping the supplying side to achieve energy

2024 3631.2 2024 95 conservation and emission reduction

20233471202394

The Company is committed to establishing a mutually beneficial and win-win strategic partnership with suppliers. In response to the

2022 3382 2022 92 country's call for energy conservation and emission reduction the Company conducted management of suppliers' turnover boxes and

formulated unit cargo control regulations in accordance with the relevant requirements of the Management Regulations for Suppliers.By promoting the use of standardized turnover boxes the Company improved logistics efficiency and reduced the frequency of supplier

Paper (kg) transportation. By reusing empty turnover boxes the Company reduced resource waste and achieved resource recycling.

2024 14426 Key performance In 2024 the utilization rate of supplier turnover box reached 100%

202312984

202214357

The Company established a supplier capability assessment mechanism for the introduction of suppliers and

Special waste and scrap recycling points were set up in each factory to collect and classify recyclables

Establishment of an Green formulated the On-site Audit Standards for QSA Suppliers to review whether the supplier's environmentally such as metals plastics and paper. By cooperating with professional recyclers the Company achieved the

internal resource procurement friendly materials have undergone periodic validity confirmation. This is used as an important threshold for the

recycling system resource reuse of waste such as recycling scrap metal into production materials reducing the cost of raw introduction of suppliers to implement green procurement policies and ensure the environmental protection

material procurement and the amount of waste disposal. policy

and recycling of resources. The audit rate of newly introduced suppliers reached 100% in 2024.Environmentally friendly large cyclone spray equipment was used to transform the powder spray equipment

In order to realize the circular economy idle equipment was renovated and utilized including more than 20 air Optimization and the recycling rate of powder coatings was increased to 90%. The assembly process reduces excessive

Renovation of idle

equipment compressors balance cranes and other equipment. In 2024 the renovation of 3 old special machines were

and upgrading

of production consumption of glue. The through holes of the crimping device seat bottom thread clamp and casing holes

completed and put back into use in the workshop. processes are changed to blind holes and the countersink depth of the fixed knife screw holes is improved. The process

improvements effectively protect the health of employees and reduce the emission of harmful components in glue.Process optimization helped the Company to achieve circular economy

115 116Standardize corporate governance Lay a solid foundation for enterprise development

Efficient governance operations Diversity of the Board of Directors

As the core decision-making body for the Company's operations and management the Board of Directors bears the significant responsibility

In strict accordance with the relevant laws regulations and normative documents such as the Company Law of the People's Republic of China of being accountable to the Shareholders' Meeting. To ensure that the Board of Directors' decision-making process is both scientific and

the Securities Law of the People's Republic of China and the Guidelines for the Articles of Association of Listed Companies the Company reasonable the Company prioritizes the diversity of the members of the Board of Directors which is reflected in gender age distribution

strives to optimize the corporate governance structure standardize the operation of the Shareholders' Meeting the Board of Directors and the industry experience professional ability and many other relevant dimensions. Such a diverse background not only provides the Board of

Board of Supervisors improve the information disclosure system strengthen investor relations management and continuously enhance the Directors with rich and diverse perspectives but also lays a solid foundation for it to make forward-looking and optimal decisions effectively

level of corporate governance. ensuring the long-term and stable development of the Company.Strategy and Sustainability

Committee Key performance

Shareholders' Meeting

Nomination and

Remuneration Committee

Board of Directors During the reporting period the These included The proportion was as Such composition not

Internal audit Audit Committee Board of Supervisors Major decisions of the

Board of Directors consisted of high as only demonstrated the

Board of Directors 9 3 33% Company's emphasis CEO directors independent directors on independence and

Finance and Economics gender equality but

Committee

Rotating Executive Chairman

of the Executive Management EMT daily business

also further enhanced

Committee (EMT) decisions

and The proportion was the comprehensiveness

and inclusiveness of the

Board of Directors.Human Financial Strategy and Quality National

2 female directors 22%

Resources Management Investment IPMT Marketing Resource Procurement Cross-department

Committee Committee Committee Committee

Process IT

Committee Operations Committee MCCommittee

Humanoid robots and AI high- Product Department Marketing Department International Business Supply Chain Information disclosureend product line Department Department

Departmental

Human Resources Financial Strategy and AT/ST

Management Management Investment

Quality and General

Management Process IT

Public Relations

Department Manager's In accordance with the provisions of the Company Law of the People's Republic of China the Securities Law of the People's Republic of Department Department Department Department Executive Office China the Administrative Measures for Information Disclosure of Listed Companies the Shanghai Stock Exchange Listing Rules and the

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Information Disclosure Management and in conjunction

with the requirements of the Company's Articles of Association the Company has formulated the Information Disclosure Management System

The Financial Management Committee consists of the Risk Management Subcommittee Accounts Receivable Management Subcommittee to regulate corporate information disclosure practices properly fulfill information disclosure obligations and effectively safeguard the legitimate

Inventory Management Subcommittee and Cost Management Subcommittee. rights and interests of the Company shareholders creditors and other stakeholders.Three-Board governance Key performance Major honors

The Company has formed a corporate governance structure consisting of the Shareholders' Meeting the Board of Directors the Board of During the reporting period the

Supervisors and the managers in accordance with the law. This structure ensures a clear division of responsibilities mutual checks and balances Company disclosed

coordination and complementarity. In addition the Company has formulated the Rules of Procedure for the Shareholders' Meeting the Rules

of Procedure for the Board of Directors the Rules of Procedure for the Board of Supervisors and the Work Rules for the General Manager to a total of 85 announcements

define the responsibilities and powers and work procedures of the Shareholders' Meeting the Board of Directors the Board of Supervisors

and the management team to ensure the separation of decision-making execution and supervision. Meanwhile the Board of Directors has set

up four special committees namely Audit Finance Nomination and Remuneration and Strategy and Sustainable Development to fully ensure Non-public announcement online documents

that the Company's decision-making level is scientific and efficient.CAPCO (China Association 2024 Best Governance

As the Company's decision-making body the Board of Directors is responsible for the Shareholders' Meeting 70 for Public Companies) Construction Award for

playing a key role in corporate governance. The Board of Directors operates in accordance with relevant laws Company Secretary Listed Companies

and regulations and the Company's Articles of Association and conscientiously implements the resolutions of the Performance Rating: 4A

Effectiveness Shareholders' Meeting. The Company continues to improve the working mechanism of the Board of Directors and Rated for six consecutive years by the

of the Board of clearly defines the selection and obligations of directors the performance and performance evaluation of directors Shanghai Stock Exchange as

Directors the composition and responsibilities of the Board of Directors the rules of procedure of the Board of Directors

laying a solid foundation for the efficient role of the Board of Directors. The Company has established and improved Grade A in information disclosure

a two-way communication mechanism between independent directors and current corporate leaders further laying

a solid foundation for building a scientific rational and efficient Board of Directors.

119 120Standardize corporate governance Lay a solid foundation for enterprise development

Investor exchange The Company strictly complies with national tax laws and regulations fulfills its tax obligations in good

Tax faith in accordance with the law and has been consistently rated as a Class A taxpayer annually. It

compliance actively fulfills its obligations for withholding and remitting taxes with no instances of tax concealment Attaching great importance to investor relations management the Company is committed to standardizing investor research processes underreporting misreporting tax evasion or fraudulent practices. The Company regularly hires a

and maintaining sound investor relations. We actively receive investors through channels such as the company website e-mail dedicated professional accounting firm to conduct special tax audits every year.telephone and the Shanghai Stock Exchange e-interactive platform. In addition the company holds performance briefings on a regular basis

to answer questions of concern to investors and promotes the company's core values to institutional investors by participating in reverse

roadshows and strategy meetings to enhance its image in the capital market. In addition we also organize investors to visit the Company

(including but not limited to exhibition halls workshop production sites etc.) to enhance investor participation and further improve the

Company's governance level. Tax In accordance with the BEPS principles the Company hires professional third parties to conduct related transparency transfer pricing analysis and dual-pillar training to ensure compliance with international tax burdens.Key performance

Performance briefings held during the On-site surveys of Theme Strategy Reverse

reporting period institutional investors Meeting roadshow Tax The Company has established a tax risk management process and a special bill review post to ensure

management

4 103 13 26 the compliance of invoices and the rationality of business. The Company has also established a tax risk system and internal control map to avoid various tax risks in advance and improve employees' tax compliance awareness through

system daily tax policy push and training.On-site reception Visit benchmark factories Covering investors

1 1 500+ The Company has established Tax Department Legal Department and Audit Department with the Organizational

structure and Tax Director Legal Director and Audit Director responsible for tax compliance legal compliance and

responsibilities operational integrity respectively. The three departments work together to conduct compliance irregular

reviews of taxes vouchers and contracts on a monthly basis.Tax management principles

Investors visit Jack's benchmark client Shangcheng Group 2024 Investor Reception Day

Tax management Major honors

The Company attaches great importance to tax management strictly

adhering to tax laws and regulations. We have established a robust

internal tax control system optimized tax planning strategies ensured full

tax compliance effectively mitigated tax risks and thereby fostered the

Company's steady and sustainable development.Key performance

Tax compliance trainings organized Tax knowledge Enterprise with a tax payment of more

during the reporting period contest than RMB100 million in 2024

121

Tax disputes Selected annually as tax Class

0 A enterprise tax export demonstration enterprise.

121 122Standardize corporate governance Lay a solid foundation for enterprise development

Strengthening internal control of risks Case: legal compliance training strengthened corporate risk management and enhanced employees’ risk awareness

In 2024 the Company carried out a number of training activities around compliance management: marketing and advertising

In accordance with the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China the Accounting compliance training was held in February "Trade Secret Protection" training was carried out in April and foreign-related legal

Law of the People’s Republic of China the Basic Standards for Enterprise Internal Control the Shanghai Stock Exchange Listing Rules compliance training was organized in August. In addition laws and regulations in the fields of securities law and auditing were

the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations and other relevant laws shared from time to time throughout the year to continuously strengthen employees' compliance awareness.regulations as well as the Company’s Articles of Association the Company has formulated the Internal Control Management System

established a compliance and risk control framework developed a risk inventory and defined operational red lines to enhance management

efficiency strengthen risk prevention capabilities mitigate and resolve risks promote standardized operations and sustainable development

and protect the legitimate rights and interests of investors.Internal control

management objectives

Business activities Assets are safe and Financial Improve operational Effectively guard are legal and used efficiently information is true efficiency and against fraud and compliant and complete effectiveness corruption

Risk internal control management objectives

In order to strengthen risk management and ensure sound operation and sustainable development the Company has formulated the Risk

Management System to define the processes of risk identification assessment response and monitoring. Internal control measures include

separation of incompatible duties authorization and approval accounting system control property protection budget control operational

analysis and performance evaluation to comprehensively prevent risks. The organizational structure of risk management has clear

responsibilities at all levels and operates in a coordinated manner to ensure the effective operation of the risk management system and provide

guarantee for the Company's long-term and stable development.Specific measures for

internal control

Incompatible

duties Authorization Accounting

Operational

Property Performance

and approval system control analysis and separation protection control

Budget control evaluation

control

control control control

Specific measures for internal control

123 124Standardize corporate governance Lay a solid foundation for enterprise development

Adhere to business ethics

The Company is convinced that adhering to business ethics is the cornerstone of the Company's long-term development and the key Reporting or

to winning the trust of customers employees and society. The Company upholds the principles of integrity fairness accountability and complaint channels

transparency establishing a strong reputation in the fiercely competitive market and driving sustainable societal development. In order to

effectively prevent operational and management risks encourage employees to actively participate in corporate governance and promptly

monitor and report possible internal bribery illegal acceptance of kickbacks improper benefits fraud operational defects or violations we have

specially formulated the Anti-Commercial Bribery and Anti-Corruption System to ensure that the Company operates in accordance with laws Report by letter Report by phone Report by email Report by Wechat ID Report in person

and regulations.The Company prioritizes anti-corruption and anti-bribery governance for its business partners. Through initiatives such as Supplier Annual Reporting or complaint channels

Conferences irregular training sessions and on-site awareness campaigns it extensively promotes its Anti-Corruption and Anti-Bribery Policy.Additionally by signing the Integrity Commitment Agreement distributing A Letter to Partners conducting short video campaigns and paying Protection of

regular site visits the Company actively conveys its commitment to ethical practices and clean business conduct. In 2024 the signing rate of whistleblowers Confidentiality Reward mechanism

supplier integrity commitment agreements/commitment letters/integrity contracts reached 100%. Supplier Management System: set relevant

T h e C o m p a n y s h a l l p r o t e c t Those who accept reports and conduct Meritorious whistleblowers will be

requirements for supplier access such as legality compliance and honest operation. A Letter to Partners details the strict prohibition of all

whistleblowers from retaliation provided investigations must strictly maintain rewarded and their personal information

forms of corruption and bribery. The Company also launched anti-corruption bribery and corruption awareness campaigns for the immediate

that they act in good faith hold a confidentiality must not disclose the shall not be disclosed without their

family and friends of staff members who have strong ties with business partners and regularly visited business partners to spot-check for any

reasonable belief in the accuracy of whistleblower's information or the consent.non-compliance.the information abstain from false content of the report must properly

allegations and are not motivated by keep the materials and must not reveal

Case: anti-corruption seminars guided the enterprise to practice business ethics personal interests. the whistleblower's identity.The Company held a general management cadre meeting at the Jiaojiang headquarters on January 22 2024 to provide integrity Duty to report No retaliation Dealing with violators

and self-discipline training where all management cadres present took oaths. An anti-corruption seminar was held at Linhai Factory

The whistleblower must be responsible No department or employee may Investigators who violate confidentiality

on July 19 2024 and at the headquarters of the Company on July 24 2024 respectively. The Company's senior management set an

for the content of the report. If it is a retaliate against whistleblowers. regulations or perform their duties

example by taking the lead in swearing and signing a commitment to integrity and self-discipline. The anti-corruption seminars further

false accusation or defamation he or Violators will be warned dismissed or impartially will be warned dismissed

strengthened employees' awareness of integrity improved the Company's compliance management level further consolidated our

she will be warned expelled or handed handed over to judicial authorities for or handed over to judicial authorities

corporate culture and laid a solid foundation for the sustained and stable development of the Company.over to judicial authorities depending on prosecution. depending on the circumstances.the circumstances.Whistleblower protection and penalties for violations

Anti-unfair competition

The Company strictly abides by the Anti-Monopoly Law and the Anti-Unfair Competition Law adheres to the principles of "voluntariness

equality fairness and integrity" and is committed to maintaining a fair and orderly business environment and fair competition order in the

sewing equipment industry.Case: antitrust training enhanced corporate compliance in market competition and drives

sustainable development

Reporting and complaints

In December 2024 the Company organized an antitrust training

To encourage the reporting of non-compliant conduct and safeguard the rights session to enhance understanding of competition laws and

and interests of whistleblowers the Company has established the Whistleblower regulations strengthen compliance awareness and prevent

Protection System. Employees can report anonymously by phone letter monopolistic behavior through case analysis and regulatory

email WeChat or in person. The Company strictly maintains the confidentiality interpretation. The training session helped the Company identify

of whistleblower information and prohibits any disclosure of such information potential risks establish internal monitoring mechanisms

or retaliation against whistleblowers. The Company rewards meritorious ensure fair competition in the market and promote the healthy

whistleblowers and imposes strict penalties for malicious allegations thereby and sustainable development of the Company.ensuring the fairness and transparency of the whistleblowing mechanism and

advancing compliance-driven corporate development.

125 126Standardize corporate governance Lay a solid foundation for enterprise development

Party building Major honors Party Day-themed activities

management

January February March April

The Company attaches great importance to Party building work fully

leveraging the core leadership role of the Party organization and 2023 Annual Welcome the New Learn from Lei Feng's Commemorate the

the vanguard and exemplary role of Party members. It is committed Thematic Education Year with a warm and spirit revolutionary martyrs

to strengthening the cohesion and sense of responsibility among Organizational caring heart Carry forward the new Inherit the red gene

Party members promoting the deep integration of Party building and Life Meeting and Forge ahead and trend of the times

business operations and supporting the high-quality development of Democratic Appraisal write a new chapter

the enterprise. of Party Members

In 2024 the Company’s Party Committee actively carried out a August July June May

series of Party-building activities deepened patriotism education and The Company was selected as a typical case

discipline learning and strengthened Party member management. By of Party building in Zhejiang Province

selecting and commending the outstanding Party organizations Party Study and implement Study the disciplines Stay true to our Study the regulations and

members and Party workers of the year the Company encourages the spirit of the Third to forge the soul and original aspirations abide by the Party discipline

all Party members to play a vanguard and exemplary role. Party Plenary Session of strengthen the Party spirit and soldier on Maintain reverence and

Day-themed activities enhance the cohesion of the Party branches the 20th CPC Central Soldier on uphold ethical boundaries

and promote the deep integration of Party building and enterprise Committee

development. Annual democratic consultation meetings for Party

members further promote democracy and unity within the Party. September October November December

In addition as a representative of Taizhou enterprises the Company Courageously embrace the Carry forward the Focus on promoting Be a pioneer and set

shared its experience and demonstrated the effectiveness of its Party critical missions of the era revolutionary spirit reform an example

building work at the industrial chain Party building work conference.Strive to be a pioneer of reform Draw strength for Set sail for a new Build consensus and

progress chapter promote development

On February 22 2024 senior executives embarked on a "Red In May 2024 the political commissar delivered a lecture on the In October 2024 we carried out an investigation activity on In November 2024 the General Party Branch of Linhai Factory

Journey" to Gutian where they revisited the Gutian Conference Disciplinary Regulations of the Communist Party of China to mutual promotion of Party building with the School of Marxism held the annual democratic consultation meeting for Party

Memorial Site and renewed their Party admission oaths. Party members and the public. Taizhou University members

In April 2024 in conjunction with the Party General Branch of In July 2024 the Company organized the selection of In November 2024 as the only enterprise representative in In 2024 we organized "Outstanding Party Branches" to carry

the Linhai Factory we went to Wugen Wenling to carry out the "Outstanding Party Organization of the Year" "Outstanding Taizhou City we delivered a typical speech at the on-site out the Party Day-themed activity - "Working Together to

"Qingming Patriotic Education" activity Party Members of the Year" and "Outstanding Party Workers of meeting of the industrial chain Party building work Create a Better Future"

the Year" and held an award ceremony for each.

127 128Contributing to common prosperity and returning benefits to society

Contributing to rural revitalization Case: setting up the Common Prosperity Workshop to support people with disabilities and low-income groups

The Company actively shoulders social responsibilities and contributes to rural Key performance Employment and income increase for farmers. Through

revitalization. It has effectively promoted targeted poverty alleviation and regional innovative employment models the Company established a

economic development through a number of initiatives including supporting During the reporting period the common prosperity workshop in Jiaojiang District Taizhou

management of designated wheat fields in Henghechen Village Xiachen Street Company participated in City Zhejiang Province providing jobs for disabled and low-

making targeted donations to Dongdi Township Nayong County Guizhou Province income farmers. Through collaborative operation of automation

and carrying out consumer assistance in Seda County. In addition through the 14 equipment the production efficiency was significantly

Common Prosperity Workshop program the Company facilitates nearby employment improved while the average monthly income per worker

programs concerning rural

for local residents contributing Jack's force in realizing common prosperity. exceeded RMB3000. In the future the Company will strive revitalization for further development by enhancing party building upgrade

and improve the Common Prosperity Workshop contribute to

Case: supporting management of wheat fields to contribute to rural revitalization common prosperity and shoulder more social responsibilities.The Company actively plays the exemplary and leading

role of local elites and has supported the management of

10 acres of designated wheat fields in Henghechen Village

Xiachen Street. Through resource integration and industrial

driving it helped villagers increase their income. In this way Give back to society

the Company contributed to rural revitalization achieved a

win-win result in economic and social benefits and injected

new vitality into rural development. The Company adheres to the concept of "returning benefits to society and spreading love" and actively participates in public welfare

undertakings. The Company donated money to the Charity Federation to set up an education fund to support poor students and donated

to the Zhejiang Veterans Support Association for the cause of caring for veterans. Before every festival the Company arranges visits to

economically challenged groups for delivering warmth and care. For its years of public welfare contributions the Company has won many

Case: targeted donations stimulated endogenous dynamic in rural areas public welfare honors highlighting its active undertaking of social responsibilities.In an active response to the national call the Company Key performance

made targeted donations to Dongdi Township Nayong

County Guizhou Province supporting local development During the reporting period the number of

policies with practical actions and helping to consolidate the Company's participation in volunteer Average volunteer activity duration per

and expand local development achievements. Through activities reached person

precise allocation of funds and resources the endogenous hundreds of person-time dynamic of rural areas was stimulated achieving a win-win 3 hours

result of social harmony and economic development.Major honors

Case: Seda County Consumption Assistance — Joining Hands to Build a Rural Revitalization Dream

In September 2024 the Company was awarded the title

The company actively carries out consumption assistance of Demonstration Enterprise in "Honoring Teachers and

initiatives in Seda County its paired support region. By Prioritizing Education" by the Jiaojiang District Committee

purchasing local specialty products and promoting tourism and District Government demonstrating the Company's

resources it has effectively stimulated the local consumer support and contribution to education and its good social

market. These efforts not only generate tangible economic image in this respect.benefits for Seda’s farmers and herders but also robustly

advance the sustainable development of local industries

injecting strong momentum into the implementation of the rural

revitalization strategy.

131 132Contributing to common prosperity and returning benefits to society

Donation to the Charity Federation Build a public welfare brand

The Company donated RMB 5 million to the Jiaojiang District Charity Federation for various charities poverty

relief and other activities contributing to Taizhou's high-quality development and building of a pilot city for

common prosperity. Through the Zhejiang Filial Piety Sewing Foundation's "Sewing Love for Thousands of Families" and "Doing Good Together" public welfare

programs the Company has vigorously shouldered social responsibility and delivered humanistic care. In 2024 the Company upgraded the

"Doing Good Together" program to the "Jack Charity League" to further motivate enthusiasm for charity promote the charity cause carry

Donation to the Education Foundation forward traditional culture and convey love and hope.The Company donated RMB 3 million to the BiXin Education

Foundation to support economically challenged teachers

and students and reward outstanding teachers and students.It also visits primary and secondary schools to deliver care Filial Piety Sewing Foundation

before the Teachers' Day every year contributing to the

development of education.Committed to the mission of "spreading filial piety around the world and filling the world with kindness" Zhejiang Filial Piety Sewing Foundation

fully promoted the "Five Thousand Programs" in 2024. By integrating corporate culture social responsibility and humanistic care it promoted

high-quality development of charity carried forward the spirit of filial piety and kindness conveyed love and hope and helped build a warm and

sustainable society.Donation to the Zhejiang Veterans Support Association

The Company donated RMB 300000 to the Zhejiang

Veterans Support Association showing care for veterans

Delivering support to families and providing

with practical actions contributing to supporting the military sewing services to those in need and those with

and caring for servicemen families and fostering a social limited mobility; Carrying out public welfare sewing Sewing

atmosphere that respects servicemen. activities spreading kindness expanding service Love for

coverage promoting mutual assistance among Thousands of Families

neighbors and fostering a good community

atmosphere.Sewing for Regularly organizing activities to honor and care

Pre-holiday visits and donations Helping the for the elderly spreading warmth promoting filial

Elderly piety and enhancing the well-being of seniors.Before the Spring Festival the Company visited the Xiachen

area extended festive greetings to the elderly who live alone

and gave them New Year gifts to convey social warmth and Cooperating with textile and garment colleges to

love. build smart sewing workshops establishing an Smart

innovative practice platform and cultivating talents Sewing

in the garment industry with both warmth and Workshop

strength.With a benevolent aspiration setting up special

Sewing scholarships for the garment industry to create

for Talent

Emergency rescue operations a fertile talent base for the development of the Cultivation industry.In August 2024 Jianchang County Liaoning Province

suffered severe floods. Many customers there had their Translating goodwill into action developing

equipment damaged and faced the risk of production suitable sewing equipment for people with

suspension. The Company promptly launched an emergency disabilities in both legs and providing skill training Sewing for a

to help them integrate into society. New Life

response mechanism and coordinated closely with local

governments rescue teams and customers to provide

technical support and equipment maintenance services in

a timely manner to ensure that customer factories resumed

operation as soon as possible.

133 134Contributing to common prosperity and returning benefits to society

The "Sewing Love for Thousands of Families" public welfare program has been extensively carried out in many places across the Jack Charity League

country with a total of 30 sewing volunteers recruited. In 2024 7 sewing activities were carried out providing sewing services

to more than 800 elderly people and sewing more than 1500 pieces of clothing in total. Moreover the foundation launched While developing itself the Company has always been enthusiastic about public welfare and actively delivers benefits to the community. The

the "Filial Piety Sewing Class" to help children inherit traditional crafts and cultivate filial piety. Joining hands with the community Company formulates detailed plans for public welfare activities every year. Through public welfare programs such as Doing Good Together mobile

to build "Charity Sewing Homes" to pass on warmth to every corner of the society. The Sewing Love for Thousands of Families charity markets and volunteer public welfare actions it wholeheartedly fulfills corporate social responsibility and conveys humanistic care.program won the Excellence Award in the 2024 Taizhou City New Era Civilization Practice Project Competition.In 2024 the Company continued to upgrade public welfare programs further stimulated public welfare enthusiasm and promoted high-quality

development of charity. By carrying forward traditional culture and conveying love and hope the Company has made significant contributions

to the sustainable development of society.Key performance

Since 2023 the "Doing Good Together" charity program has carried out 5 charity donation activities at the Jiaojiang

headquarters Linhai factory Xiachen factory Taizhou Bay Cluster Area factory and supplier Qiangxin Machinery

Technology (Laizhou) Co. Ltd. These events were publicized through WeChat public accounts video accounts etc.to attract more upstream and downstream people in the industrial chain to participate. All proceeds from the programs

The “Sewing for a New Life” program has have been donated to the Zhejiang Filial Piety Sewing Foundation.successfully helped 2 disabled people regain

their confidence in life and 1 disabled college

student land a job.During the reporting period the Company participated in 14 public welfare programs concerning rural revitalization

common prosperity support for targeted Western regions education support community development caring for the

The Smart Sewing Workshop donated elderly charity sales Sunshine Home and Doing Good Together. More than 1000 persons participated

equipment worth RMB 1.01 mill ion to with an average of 1.8 hours per person participating in public welfare activities. The total amount of donations in Changzhou Vocational Institute of Textile and

Garment for economically challenged students cash and materials approached RMB 1.9 million.to study and complete their education.As of December 2024 the total assistance funds of the Filial Piety Sewing Foundation have reached RMB 3.5 million covering

105 families in need providing educational support to more than 990 targets and providing assistance to hundreds

of elderly people. Zhejiang Filial Piety Sewing Foundation was rated as a 4A-level social organization in

Zhejiang Province.

135 136Appendices

Key performance

Indicator classification Name of quantitative indicator Unit 2024 Indicator classification Name of quantitative indicator Unit 2024

Society Child labor Confirmed incidents of child labor / 0

Number of employees Number of employees / 7163 Total copies of employee satisfaction questionnaires distributed / 6474

Employee satisfaction

Number of new Number of newly-recruited employees / 1561 survey Questionnaire response rate % 78

employees Number of newly-recruited full-time employees / 1561 Employee satisfaction results % 91.42

Number of female employees / 2290 Total hours of occupational health and production safety training Hours 7500

Number and Number of male employees / 4873 Health and safety

proportion of training and drills Total training hours per person Hours 1

employees by gender Proportion of female employees % 32 Number of safety drills (fire toxic gas leak etc.) / 150

Proportion of male employees % 68

Total investment in production safety RMB 10000 2020.43

Number and Number of full-time employees / 7163

proportion of Proportion of total investment in production safety against % 0.33

employees by Proportion of full-time employees % 100 安全生产投入

operating revenue

employment type Amount of employee work-related injury insurance investment RMB 10000 328

Number of employees aged 30 and below / 2028 Employee work-related injury insurance coverage rate % 100

Number of employees aged 30-50 / 4151 Number of employees injured at work (serious injury or above) / 0

Number and Number of employees aged 50 and above / 984

proportion of Number of work-related deaths (if none fill in 0) / 0

employees by age Proportion of employees aged 30 and below % 28

Number of work-related deaths per unit of revenue Employees per RMB

Proportion of employees aged 30-50 % 58 100 million revenue

0

Number of workdays lost due to work-related injuries Day(s) 963

Proportion of employees aged 50 and above % 14 Work-related injury Number of workdays lost due to work-related injuries per unit Days per RMB 1

Number of employees with bachelor's degree or below / 5719 of revenue million revenue 0.16

Number of employees Number of employees with a Bachelor's degree / 1300 Occupational disease incidence % 0

by educational

background Number of employees with a Master's degree / 133 Employee lost time injury frequency rate % 0.34

Number of employees with a doctoral degree / 11 Injury rate per working hour % per million working hours 1.34

Number of senior management staff / 104 Number of suppliers injured at work (minor injuries or above) / 0

Number of employees Number of mid-level management staff / 263 Supplier security Number of work-related deaths of suppliers (if none fill in 0) / 0

by rank Number of junior management staff / 595

Total hours of supplier safety training Hours 100

Ordinary employees / 6201

Total training hours Hours 49026

R&D department Total number of R&D personnel / 1289

personnel Average training hours per person Hours 6.84 Proportion of R&D personnel % 18

Total training hours for female employees Hours 15585

Number of employee resignations / 751

Number and

Employee turnover/resignation rate % 10 Employee training

Average training hours for female employees Hours 6.81

proportion hours

of employee Total training hours for male employees Hours 33441 Number of voluntary resignations / 751

resignations

Voluntary employee resignation rate % 10 Average training hours for male employees Hours 6.86

Average salary RMB 10000 14.48 Total training hours for senior management Hours 1680

Salary

Per capita income RMB 10000 89.54 Average training hours for senior management Hours 16.15

Employee social security payment coverage rate % 100 Total number of training sessions throughout the year / 2300 Protection of basic

rights and interests Number of employees with difficulties in unit revenue assisted Employees per million revenue 0.0008 Staff training

Annual training expenditure RMB 10000 1088

assessment

Discrimination Confirmed incidents of discrimination / 0 Number of employees trained / 7163

Forced labor Confirmed incidents of forced labor / 0 Employee training coverage % 100

137 138Appendices

Indicator classification Name of quantitative indicator Unit 2024 Indicator classification Name of quantitative indicator Unit 2024

Suppliers in general Number of main suppliers / 243 Customer complaints / 67

Customer service

Raw materials / 194 Cumulative customer service / 55403

Supplier category

management Equipment / 36 Total number of customer satisfaction questionnaires distributed / 11000

Non-production / 13 Total number of customer satisfaction questionnaires returned / 10450

Customer satisfaction

Supplier tier Number of tier-1 suppliers (direct suppliers) / 234 survey Total number of valid customer satisfaction questionnaires returned / 10450

management Number of non-tier-1 suppliers (indirect suppliers) / 9 Questionnaire response rate % 95

Supplier assessment coverage % 100 Results of customer satisfaction survey % 88.5

Supplier assessment

Supplier assessment pass rate % 100 Number of confirmed incidents of data security / 0

Percentage of suppliers who have signed a supplier code of % 97.94 Specific amount involved in incidents of data security RMB 10000 0conduct

Percentage of suppliers that have signed clauses that include Number of training sessions for data security and customer % 97.94 Data security and environmental and labor requirements privacy protection

/970

customer privacy

Number of suppliers that have conducted social impact Number of relevant emergency drills / 1

assessments / 54 Number of confirmed incidents of customer privacy breach / 0

Sustainable Number of suppliers that have conducted environmental

procurement impact assessments / 111 Specific amount involved in incidents of customer privacy breach RMB 10000 0

Number of suppliers identified as having actual and potential

significant negative social impacts / 0 Environment

Number of suppliers identified as having actual and potential / 0 Total investment in environmental management RMB 10000 921.78 significant negative environmental impacts Proportion of total investment in environmental management

Proportion of purchasers within the Company who have % 100 Environmental against operating revenue

%0.15

received sustainable procurement training

Number of violations of environmental laws and regulations / 0

Product qualification rate % 99.43 management

Amount of major administrative penalties imposed by relevant

Number of product recalls / 1200 departments such as the ecological environment department due RMB 10000 0

Production quality to environmental incidents during the reporting period

The product recall rate was % 0.039

Diesel consumption L 244545

Amount of damages caused by major safety and quality

accidents related to products and services in the year RMB 10000 0 Natural gas consumption Cubic meters 1100248

Intellectual property

rights Holding of trademarks etc. / 669 Power consumption MWh 168470 Energy

Accounts payable and Amount of overdue payment RMB 10000 0 Total amount of purchased electricity MWh 150969

outstanding Amount of overdue payments to SMEs RMB 10000 0 Amount of renewable electricity generated and consumed MWh 17501

R&D expenditure RMB 10000 48799.02 Solar energy consumption MWh 12815

R&D investment Proportion of total R&D expenditure against operating revenue % 8.01 Total exhaust emissions 10000 cubic meters 493065.87

Proportion of R&D staff % 18.00 Air pollutant Nitrogen oxide (NOx) emissions Kg 2686.41

emissions

Total Valid Patents Held / 2705 Volatile organic compounds (VOCs) emissions Kg 3349.52

Invention Patents / 1125 Particulate matter (PM) emissions Kg 40168.78

Intellectual property Water pollutant Utility Model Patents / 1334 discharge Total wastewater discharge 10000 cubic meters 1.46rights

Design Patents / 246 Water resource Total water consumption Tons 4261418

Accumulated Software Copyrights Obtained / 549 management Water use intensity Tons per RMB 10000 revenue 6.99

Customer feedback response speed / Response within Total waste generation Tons 4028.85

Customer service 10 minutes

Customer feedback response rate % 99.94 Waste disposal Of which: total amount of hazardous waste Tons 391.13

Of which: total amount of non-hazardous waste Tons 3637.72

Raw materials and Total mass or volume of materials used in production and

packaging Tons per cubic meter 5834.4 packaging materials

management Of which: non-renewable materials used Tons per cubic meter 2203.2

139 140Appendices

Index of Indicators

Indicator classification Name of quantitative indicator Unit 2024 Level-1 topic Level-2 topic Related chapters

Renewable materials used Tons per cubic meter 3631.2 Management of risks and opportunities related to climate change Combating climate change

Raw materials and Recycling rate of materials used in production and packaging % 95 Assess the adaptability of the Company's strategy and business

packaging materials model to climate change Combating climate change

management Of which: production material recovery rate % 95 Transformation plans and measures to address climate-related risks

and opportunities and progress Combating climate changeOf which: packaging material recycling rate % 95

Combating climate Provide greenhouse gas emissions in different scopes by category Combating climate changeGovernance

change Provide greenhouse gas emissions by category Combating climate change

Total number of Board of Directors members / 9

Number of female directors / 2 Methods for calculating greenhouse gas emissions Combating climate change

Number of non-independent directors / 6 Practices in reducing Greenhouse gas emissions Combating climate change

New technologies products and services that are conducive to

Number of independent directors / 3 reducing carbon emissions and achieving carbon neutrality Cleantech opportunities

Proportion of female directors on the Board of Directors % 22 Information of pollutant discharge Pollution emission control

Proportion of executive directors on the Board of Directors % 67 Pollutant discharge and treatment Pollution emission control

Proportion of independent directors on the Board of Pollutant emissions

Directors % 33 Impact on the group Pollution emission control

Proportion of independent directors on the Audit % 67 Administrative penalties Pollution emission controlCommittee

Proportion of independent directors on the Compensation Amount of waste Pollution emission control

Committee % 67 Waste disposal

Proportion of independent directors on the Nomination Information of treatment Pollution emission control

Committee % 67 Exit No the Company's operations do not

Proportion of independent directors with a tenure of more involve biodiversity destruction

Board of Directors than 6 years % 0 Protective measures within the area No the Company's operations do not

Proportion of independent directors who serve as involve biodiversity destructionEcosystem and

independent directors in more than 3 listed companies % 0 biodiversity Protective and restoration measures No the Company's operations do not

Number of meetings of the Board of Directors attended by conservation involve biodiversity destruction

all directors / 10 Biological genetic resources No the Company's operations do not

Number of meetings of the Audit Committee of the Board involve biodiversity destruction

of Directors / 4 Product life cycle impact No the Company's operations do not

Number of meetings of the Nomination and Remuneration involve biodiversity destruction

Committee of the Board of Directors / 3 Risk management Environmental compliance management

Number of meetings of the Strategy Committee of the Environmental

Board of Directors / 1 compliance Emergency Environmental compliance management

Average attendance rate of the Board of Directors % 100 management Administrative penalties Environmental compliance management

Number of directors attending less than 75% of meetings / 0 Status of use Efficient use of resources

Minimum attendance requirement for each director % 100 Energy utilization Clean energy Combating climate change

Average tenure of members of the Board of Directors Year(s) 4.12 Conservation target Efficient use of resources

Standard deviation of age of directors supervisors and

senior managers Year(s) 6.26 Water resource Status of use Efficient use of resources

Board of Supervisors Number of meetings of the Board of Supervisors / 7 utilization Conservation target Efficient use of resources

Shareholders' Meeting Number of Shareholders' Meetings / 3 Goal-oriented plan Efficient use of resources

Equity and Executive shareholding ratio % 0.75 Circular economy Specific measures Efficient use of resources

shareholders Stock pledge ratio % 0 Progress Efficient use of resources

Economy

Corporate strategy Contributing to rural revitalization

Total assets RMB 10000 785320.96

Rural revitalization Specific measures Contributing to rural revitalization

Operating revenue RMB 10000 609365.38

Work results Contributing to rural revitalization

Profit before tax (PBT) RMB 10000 90163.45

141 142Appendices

Level-1 topic Level-2 topic Related chapters

Social contribution Contribution Give back to society

Strategic goals R&D innovation driven

Specific situation R&D innovation driven

Innovation Driven

R&D results R&D innovation driven

Innovation impact R&D innovation driven

Field of work R&D innovation driven

Internal management R&D innovation driven

No the Company's research and

Scientific and Violations development does not involve

technological ethics any violation of scientific and technological ethics

No the Company's research and

Training and promotion development does not involve any violation of scientific and

technological ethics

Risk management Supply chain management

Supply chain security Support measures Supply chain management

Improvement measures Supply chain management

Treat small and Unpaid amount Not involved

medium-sized

enterprises equally Specific situation Adhere to business ethics

Ecosystem and

biodiversity Exit No the Company's operations do

conservation not involve biodiversity destruction

Management system Ensure product quality

Quality certification Ensure product quality

Product and service

safety and quality Major accidents Ensure product quality

After-sales service Ensure product quality

Accessibility Ensure product quality

Management system Digital strategy

Data security and Security incidents Digital strategy

customer privacy

protection Customer privacy protection Digital strategy

Leakage Not involved

Employee recruitment Protect employees’ rights and interests

Employees Occupational health and safety Care for employees' health

Career development and training Talent training and development

Due diligence Due diligence progress ESG governance

Stakeholder Communication system ESG governance

communication Suggested channels ESG governance

Circular economy Goal-oriented plan Efficient use of resources

Management system Adhere to business ethics

Anti-commercial Risk assessment Adhere to business ethics

bribery and anti-

corruption Training performance Adhere to business ethics

Event Not involved

Anti-unfair Management system Adhere to business ethics

competition Administrative penalties Not involved

143144