CONTENTS
About this Report 01 Quality Revolution Intelligent Connectivity
Message from the Chairman 03 1 Craftsmanship and Intelligent EcosystemManufacturing Forge Benchmark Empowering Global Industries with About Jack Technology 05 Blockbusters 2 Intelligent Services
ESG Management 13 Innovation-driven R&D 25 Customer service excellence 51
Ensuring product quality 35 Supply chain management 56
Digitalization strategy 43 Supporting industry development 64
Topics:
Intelligent total solutions 19
activate intelligent garment Talent Leadership Green DNA
manufacturingAI-driven value 3 Gathering AI Talents to Solidify Low-Carbon Transition Safeguards leads the future of the industry the Foundation of Innovation 4 Ecological Civilization
Protection of employee rights 69 Environmental compliance management 93
Appendix Talent training and development 76 Clean technology opportunities 97
Key performance table 143 Employee health and well-being 81 Addressing climate change 99
Pollution emission control 104
Index of indicators 148
Resource recycling 108
Reader feedback form 150
Governance
5 Cornerstones
Value Symbiosis
Standardization and 6 Industrial Synergy Drives Common Transparency Build a Solid ProsperityFoundation for Development
Efficient governance operations 115 Promoting rural revitalization 135
Strengthening risk and internal control 122 Repay Society with Compassion 136
Strict adherence to business ethics 125 Building a philanthropic brand 139
Party building management 1322025 Environmental Social and Governance (ESG) Report
About this Report Guidelines on Corporate Social Responsibility Reporting in China (CASS-ESG 6.0) issued by Chinese Academy of Social Sciences
Guidance on Social Responsibility Reporting (GB/T 36001-2015) issued by the China National Institute of Standardization
This Report discloses in detail the practices and performance of Jack Technology Co. Ltd. in the areas of economic
ISO 26000: Guidance on Social Responsibility (2010) issued by the International Organization for Standardization
environmental social and governance responsibilities in 2025 aiming to communicate effectively with stakeholders and
systematically respond to their expectations and requirements.Data Description
Scope The data sources used in this Report include original data from the Company's actual operations public data from government departments annual financial data internal relevant statistical reports third-party questionnaires and third-party
evaluation interviews. The financial data in this Report are in RMB. In case of any inconsistency with the financial report the
This Report discloses the information on fulfillment by Jack Technology and its subsidiaries of their economic social financial report shall prevail.environmental and governance responsibilities with relevant typical cases coming from affiliates of the Company.Definitions
Period For the convenience of expression and reading "Jack Technology Co. Ltd." is also referred to as "Jack" "Jack Technology"
"the Company" or "we" in this Report.The period is from January 1 2025 to December 31 2025. To enhance the comparability and forward-looking nature of
this Report some contents are appropriately extended to the previous and subsequent years.Reliability Assurance
Preparation Basis 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.Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial)
issued by Shanghai Stock Exchange
Guide No. 4 for Self-Regulatory Supervision on Listed Companies of the SSE – Compilation of Sustainable Report Access
Development Reports issued by Shanghai Stock Exchange
United Nations Sustainable Development Goals (SDGs) This Report is available for your reading in electronic form. You can visit the Company's official website (https://cn.chinajack.com/) or the website of Shanghai Stock Exchange (www.sse.com.cn) to access it. In case of any questions or suggestions
Global Reporting Initiative (GRI) Standards issued by Global Sustainability Standards Board about this Report please send an email to IR@chinajack.com or call 0576-88177757.This report is published in Chinese and English. Should there be any discrepancies between the two versions the Chinese
version shall prevail.
01 022025 Environmental Social and Governance (ESG) Report
Message from the Chairman
Thirty years of perseverance three decades of legacy. The year 2025 marks the 30th anniversary of Jack Technology's entry into the At thirty we are in our prime; our journey is vast and we are
sewing industry. Facing global economic shifts and profound industrial restructuring all Jack employees have embodied the spirit of soaring high. Standing at a new historical starting point Jack
"Harmony Integrity Fighting and Rising". With a conviction to strategize compete and win we have steadfastly advanced our core will remain committed to its mission of "Intelligent Connection
strategy of Intelligent Total Solutions. We have revitalized new quality productive forces through hardcore innovation forged new paths for Total Solution Grants Intelligent Garment Manufacturing
amid change and achieved outstanding results against challenges thereby writing a new chapter of high-quality development. Unlimited Possibilities." We will adhere to the strategic
directions of focusing on users Innovation-Driven Development
We take technological innovation as our soul anchoring ourselves in the global transformation of intelligent garment manufacturing. fostering ecosystem collaboration deepening global presence
Adhering to a customer-centric approach we launched the world's first AI-powered Ai10 intelligent industrial sewing machine and leading with AI and advancing multiple chains. Guided by a
iterated benchmark blockbusters like A.M.H. 2 and M9-A achieving large-scale implementation of our Intelligent Total Solutions. We merit-based culture with AI digital production lines as our core
have proactively laid the groundwork for AI-powered digital integrated production lines through joint R&D with clients integrating artificial engine we will focus on humanoid robots and cutting-edge
intelligence humanoid robots intelligent manufacturing and algorithm optimization to build a new paradigm of efficient lean and technologies gather global wisdom deepen our global footprint
intelligent production for our global customers. By the end of 2025 our product system was continuously streamlined and optimized with and uphold open cooperation and principled innovation to
a total of 3668 patents and software copyrights (including over 1200 invention patents). Our sustained high-intensity R&D investment propel the intelligent garment manufacturing industry to new
(exceeding 8% of revenue) has built a long-term industry-leading technological barrier. heights of intelligence digitalization and globalization.We are rooted in product excellence practicing a belief in zero- We are guided by a green and low-carbon vision fulfilling We will join hands with our global partners bravely undertake
defect quality. We have connected the entire chain of R&D our Dual Carbon mission and contemporary responsibilities. the mission of our era march toward our ten-billion-yuan goal
manufacturing delivery and service with a digital system. We have integrated sustainable development into the entire aim for a hundred-billion-yuan market value and explore trillion-
process of R&D design manufacturing and supply chain
Leveraging a matrix of comprehensive digital tools we have management. By promoting green process innovation and yuan blue ocean markets. We will empower the industry with
achieved visualized quality data scientific decision-making energy-saving carbon-reduction practices we empower the technology forge a legend with craftsmanship and contribute
and closed-loop management. We forge premium products low-carbon transformation of the industrial chain with our green Jack's strength to the advancement of global intelligent garment
to the highest standards consistently leading the industry in and intelligent products protecting our ecological home and manufacturing and a better life for humanity!
product quality delivery efficiency service responsiveness demonstrating corporate responsibility.and customer reputation thereby earning the deep trust of our We build on a foundation of compliant governance safeguarding
global clients. our long-term stability and success. We continuously enhance Chairman of Jack Technology Co. Ltd.our modern corporate governance system and our practices in
We are committed to strengthening the Company with information disclosure internal control management and ESG April 2026
talent building a world-class intelligent manufacturing have repeatedly received authoritative recognition. We adhere to business ethics fortify our anti-corruption defenses and
team. Upholding a dedication-oriented philosophy we have foster a global business ecosystem of integrity transparency
established a comprehensive ecosystem for attracting and fairness.cultivating retaining and developing talent. Focusing on our
"Four Eagles Program" we have gathered top professionals We take pride in our contributions to society conveying the
warmth of our industry. We are deeply involved in empowering
in AI software and intelligent manufacturing. By the end rural revitalization and common prosperity. Through the Filial
of 2025 we had attracted 13 Ph.D. holders and over 30 Piety Sewing Foundation we have created a distinctive
overseas returnees injecting core momentum into our philanthropic system for the industrial chain carrying out
strategic execution. We strictly adhere to occupational health targeted assistance programs such as supporting the elderly
and safety standards safeguard employees' rights to equal students and people with disabilities and promoting industry-
education integration. We give back to society through our
development and build an exceptional organization that is industrial strength and have been honored with multiple
caring responsible and dynamic. national-level awards.
03 042025 Environmental Social and Governance (ESG) Report
About Jack Technology Company performance
Empowering Guided by exceptional senior leadership the Company focuses on the vision and mission of
intelligent
Company overview "Intelligent Connection for Total Solution Grants Intelligent Garment Manufacturing Unlimited manufacturing Possibilities." We have established an H1-H3 three-horizon growth engine with AI and green
with intelligent digitalization at its core. By solidifying our quality foundation through IPD and a Zero-Defect
Company profile connectivity leading globally system we have achieved steady performance growth and continue to lead the global intelligent
with AI garment manufacturing ecosystem.Jack is the only company in the global sewing equipment industry to
have fully embedded AI into its core operations. Built on its proprietary
BeiDou Star MOM flexible manufacturing management system—which Rooted in the Taizhou culture of harmony and the Dachen Island's reclamation spirit we
integrates key intelligent manufacturing modules such as APS MES PDM Rooted in the
Taizhou spirit integrate the corporate spirit of "Harmony Integrity Fighting and Rising." We practice the values and WMS—the Company links a complete suite of intelligent hardware
uniting the entire of "Customer First Focused Dedication Striving Relentlessly and Shared Success." Through
including intelligent warehousing intelligent cutting AI-driven hanging line chain's synergy our "Four Cultures Model" we cultivate a merit-based culture foster boundaryless collaboration
scheduling intelligent sewing post-sewing sorting and humanoid robots and build cultural cohesion and sustainable competitiveness across the industrial chain.forming a comprehensive intelligent equipment system.Through deep hardware-software integration the Company works Forging a core Our annual R&D intensity exceeds 8% with a cumulative investment of RMB 1.435 billion
closely with major customers to co-develop solutions that connect six with intelligent over the past three years. We have established a CBB technology platform and 14 global
critical production stages: fabric and trim storage intelligent cutting with R&D breaking R&D centers. In collaboration with top institutions like Tsinghua University Alibaba AgiBot
and X Square Robot we focus on AI and humanoid robots to empower intelligent garment
real-time inspection cut-part supermarket AI hanging lines paired with AI boundaries
through multi-party manufacturing. We are restructuring distributed production with our "Starlink Cloud Alliance" sewing intelligent post-sewing sorting and finished goods warehousing. collaboration initiative driving full-chain innovation from technological breakthroughs to implementation.This end-to-end digital solution has enabled the Company’s successful
shift from a provider of standalone equipment to a full-service partner in
apparel intelligent manufacturing.Global network Our products cover over 170 countries with a deep focus on high-quality quick-response The Company continues to reinforce its integrated hardware-software
layout multi-brand and economy markets. We have built an operational system featuring "Sector head + Chief advantage by building a scalable highly flexible global platform for collaborative integrator + Local iron triangle" to achieve full-chain localization of marketing and services
apparel manufacturing. It is cultivating an ecosystem where supply and boosting customer satisfaction to 91.8% within three years.demand work in sync—helping factories boost productivity supporting
brands in modernizing their supply chains and advancing the fashion
industry through digital and intelligent innovation. We have a global network of over 8200 service outlets and a professional team of more than
"Three Fast" 20000 creating a "Three Fast" network: 10-minute response 1-hour on-site arrival and 30-minute
Aitu humanoid robots and AI digital integrated production lines represent a key strategic focus for the Company. Adhering to a dual service sets the problem resolution. By integrating the Expedited Rabbit Club a star-rating system and a digital
approach of independent innovation and open collaboration we continue to deepen joint R&D with world-leading institutions and industry standard delivery system we have completed over 10000 remote service cases and proactively maintained
clients. In September 2025 the Company launched the world’s first AI sewing machine the Ai10 breaking international technological achieving global over 200000 pieces of equipment. We have received five-star certification for nine consecutive customer success
monopolies and winning the "2025 IFA Gold Award for AI Product Innovation." The Aitu humanoid robot prototype has been showcased years and been named a "National Top 10" for five terms leading the industry's service standards.at multiple events and we are advancing joint innovation with several clients with a planned market launch in September 2026.Going forward the Company will continue to increase investment in digital software AI and humanoid robots collaborating with End-to-end We operate a world-leading intelligent sewing factory with a total investment of RMB 1.35 billion in smart
ecosystem partners to co-develop a series of products—including AI overlock machines AI coverstitch machines AI cutting systems intelligent equipment. We have independently developed twelve major digital systems and implemented seven
AI hanger systems—and the Aitu humanoid robot. Centered on the "Hardware + Software + AI + Humanoid Robot" paradigm we will manufacturing 5G-integrated application scenarios. The factory has achieved a 20% increase in production efficiency a
leading the way with 20% reduction in product defect rates and a 30% shorter R&D cycle. Through end-to-end quality traceability address the entire apparel manufacturing value chain—from pre-sewing and in-sewing to post-sewing—through hardware upgrades and intelligent network control of equipment we have created a new paradigm of fully transparent intelligent
process re-engineering and intelligent coordination. This will enable us to build fully automated unmanned AI digital integrated full-chain 5G manufacturing earning the distinction of being the industry's only "National 5G Factory."
production lines that achieve end-to-end unmanned digital and flexible closed-loop production from fabric inspection to finished goods
dispatch gradually replacing traditional manual operations. Our aim is to help the industry enhance quality reduce costs and improve
efficiency effectively addressing the industry pain point of "small orders quick response" and driving global apparel manufacturing Zero-defect
toward greater intelligence and efficiency. as the guiding We have established a four-tier quality management system centered on a "Zero-Defect" culture
principle promoting the "Four-Heart project" and a "Mirroring" closed-loop rectification process. Leveraging
driving quality the QMS/LIMS digital platform and 12 primary processes we achieve end-to-end quality control
with digital across the entire chain. Our intelligent total solutions quality management model drives a positive
intelligence cycle from demand to product to satisfaction.Gathering talent We have established a "Comprehensive Incentive 3+3" system encompassing mechanisms such as
to build a foundation salary bonuses equity and new business shareholding to retain talent through high returns. In the
for development past three years we have recruited 203 high-level talents including doctoral and master’s graduates
creating a win-win from top domestic and international universities such as Harvard. We have implemented the "Four
ecosystem with Eagles Program" built a 3×3 "Iron Triangle" organizational structure and promoted the synchronized
multiple incentives advancement of talent and business forging an ecosystem of industry partners.
05 062025 Environmental Social and Governance (ESG) Report
Development history
International trade phase (1995–2003)
1995199619992000200120022003
Established Taizhou Feiqiu Put into operation the first Successfully launched the first self- Completed two modern Officially renamed Held the first national Established New Jack
Sewing Machine Co. Ltd metalworking production line developed overlock machine factory buildings "Feiqiu" to "Jack" dealer conference the predecessor of the
for small overlock machines pioneering a new trend Company
Held the "Three Days Three Successfully registered in the industry
Nights" conference on corporate the Jack trademark
management transformation
Globalization phase (2010–2018) Internationalization phase (2004–2009)
201820172015201320112009200720062004
Acquired Vibemac (Italy) Listed on the A-share Launched the A4 Ranked first in the industry Achieved a Acquired Topcut-Bullmer Broke ground on Hired a prominent Appointed a
market leading the industry for overall strength commanding lead (Germany) and expanded Linhai Industrial Park industry figure as professional
Acquired Anhui Jieyu to expand into the era of "talking in global sales into the pre-sewing sector chairman manager as
into the footwear sector Acquired Maica (Italy) machines" Commenced construction general manager
of the Jiaojiang Became the exclusive
Laid the foundation for the Launched the industry’s headquarters title sponsor of the "China
Smart Factory first intelligent Garment Brand of the
production line Year Awards"
Global leadership phase (2019–present)
2019202020212022202320242025
Expanded into the intelligent Expanded into the intelligent Expanded into intelligent Recognized as a Globally launched the Relocated headquarters to Held the 30th anniversary
hanging system industry fabric inspection machine total solutions Future Factory in flagship blockbuster A.M.H. Hangzhou celebration and global
industry Zhejiang Province technology conference
Relocated headquarters from Renamed Jack Sewing Awarded the title of National Globally launched the
the Xiachen factory to the Commenced operations Machine Co. Ltd. to Jack Green Factory flagship blockbuster Urus Globally launched the flagship
Jiaojiang factory at the intelligent high- Technology Co. Ltd. blockbuster A.M.H. 2
end sewing equipment Received certification as
manufacturing base "global sales leader for 14 Launched the Ai10 intelligent
consecutive years" industrial sewing machine
Debuted the humanoid robot at
the CISMA
07 082025 Environmental Social and Governance (ESG) Report
Milestones * On July 2 the 7th Yangtze River Delta Business Innovation Conference was held
in Shanghai where Jack was successfully selected as one of the "Top 10 Innovation
Benchmarks."
* In July Jack once again received an AA ESG rating for 2025 from Wind.* Jack was recognized as a 2024 Zhejiang Province Manufacturing Quality * On July 9 Jack was ranked No. 1 among the "Top 10 Comprehensive Enterprises in
Benchmark setting a model for the industry.January Selected as one of the "Top 10 Innovation July China's Sewing Machinery Industry" and No. 1 among the "Top 10 Enterprises in China's
* Jack has been ranked among the Top 30 Zhejiang Listed Companies for Benchmarks" at the 7th Yangtze River Delta Industrial Sewing Machine Industry."
internal control for 8 consecutive years. Business Innovation Conference * On July 18 Jack Technology celebrated its 30th anniversary by hosting a ceremony in
Ranked among the Top 30 Zhejiang Listed Com- Taizhou for the 30 millionth intelligent industrial sewing machine rolling off the production
panies for Internal Control for 7 consecutive years line and the "Innovation for the Future" Global Technology Conference. The event
brought together numerous top global academicians industry leaders and technology
pioneers to discuss the revolutionary applications of artificial intelligence in the field of
"Innovation for the Future" Global Technology Conference intelligent garment equipment.* On February 15 Jack's second Red Tour stop took the Company to
February Yan'an focusing on emancipating minds seeking truth from facts and
* On August 3 Xinhua News Agency launched its key column "Securing a Decisive Victory
uniting efforts to exceed the ten-billion-yuan mark. in the '14th Five-Year Plan' Finale" with its inaugural article focusing on Jack's development
practices.Red Tour arrives in Yan’an August * In early August the Economy and Information Technology Department of Zhejiang
announced the 2025 "Zhejiang Made Excellent Products" list which included Jack's A.M.H.* In August Jack signed a cooperation agreement with Hangzhou Linping New City to
A.M.H. was listed in the 2025 "Zhejiang officially launch the investment and construction of Jack Technology's second headquarters
Made Excellent Products" by the Economy building and a high-end intelligent equipment manufacturing base.* On March 19 Jack held the kick-off meeting for the National Key R&D and Information Technology Department
Program's special project on intelligent robots titled "Development and
March Application Verification of Autonomous Sewing Robot System." The * On September 23 Aitu (Zhejiang) Intelligent Sewing Technology Co. Ltd. launched the
National Key R&D Program is currently the highest-level R&D initiative world's first AI-powered Ai10 intelligent industrial sewing machine in Shanghai breaking the
in China. technological monopoly of international brands in this field and winning the "2025 IFA Gold Kick-off meeting for the "Development and Award for AI Product Innovation."
Application Verification of Autonomous
Sewing Robot System" project September * On September 24 the China Int’l Sewing Machinery and Accessories Show (CISMA 2025)
grandly opened at the Shanghai New International Expo Centre. Jack secured a prime central
position at the exhibition showcasing the formidable strength of an industry leader.* On September 26 the All-China Federation of Industry and Commerce released the "2025 Top
Aitu (Zhejiang) Intelligent Sewing Technology Co.Ltd. launched the world's first AI-powered Ai10 500 Private Enterprises in R&D Investment" and "2025 Top 500 Private Enterprises in Invention
intelligent industrial sewing machine in Shanghai Patents" lists with Jack appearing on both.April * On April 26 Jack ranked 30th on the 2024 Zhejiang Top 100 List for * On October 14 Jack received a Grade A rating for information disclosure from the Shanghai
Patent Creativity. Stock Exchange for the seventh consecutive year.Ranked 30th on the Zhejiang Top 100 List * On October 17 the Office of the National Working Commission on Aging announced
for Patent Creativity commendations for the national "Exemplary Organization for Respecting the Elderly" and
"Model Individuals for Respecting Loving and Assisting the Elderly" with Jack being honored
October as a national "Exemplary Organization for Respecting the Elderly."
* On October 17 the 2025 China Listed Companies ESG Index Evaluation Report Launch
Conference was held in Hangzhou where Jack ranked first in the overall score for the
Honored with the 2025 Ram Charan machinery and equipment industry in Zhejiang.Management Practice Award—Award for * On October 31 Jack was honored with the HBR (Harvard Business Review) 2025 Ram
Globalization Corporate Practice Charan Management Practice Award—Award for Globalization Corporate Practice.May * On May 23 Jack was honored with the title of "7th National Civilized Unit."
* On November 11 the 2025 Peter Drucker China Management Forum announced the
winners of the fourth "Chinese Management Prize in Memory of Peter Drucker" and
Honored with the title of "7th National Jack was honored with this award.Civilized Unit" November
* On November 24 the Economy and Information Technology Department of Zhejiang
announced the "2025 Zhejiang Provincial Headquarters Leading Enterprises in Private
Selected for the "2025 Zhejiang Provincial Headquarters
Leading Enterprises in Private Economy" list Economy" list and Jack was successfully selected.* On June 11 Liu Jie Governor of Zhejiang Province visited Jack to learn
* On December 2 the Future 20 · 2025 A-Share Listed Companies Growth Conference
about the Company's new progress and achievements in technological unveiled the "Future 20 · 2025 A-Share Listed Companies of the Year for Growth Potential"
June product and service innovation. list with Jack being successfully selected.* On June 16 Jack held the global launch event for the A.M.H. 2 in * On December 5 the Zhejiang Federation of Industry and Commerce and the General
Hangzhou which was live-streamed simultaneously in over 170 countries December Association of Zhejiang Entrepreneurs released the 2025 series of lists including the Top
Hosted the global launch of the A.M.H. 200 Private Enterprises in Zhejiang Province. Jack was listed among the Top 200 Private
2 under the theme "To Be the King of drawing widespread industry attention and sparking lively discussions. Manufacturing Enterprises in Zhejiang Province the Top 200 Private Enterprises in Zhejiang
Cross Seam" Province by R&D Investment and the Top 200 Private Enterprises in Zhejiang Province by
Selected for the "Future 20 · 2025 A-Share Invention Patents for 2025.Listed Companies with Growth Potential" list
* On December 5 Ms. Wu Li a professional manager was appointed as the Company's President.
09 102025 Environmental Social and Governance (ESG) Report
Corporate culture
Corporate culture Zhejiang Province's Third Zhejiang 'Digital and Batch of Foreign-Invested Zhejiang Made Excellent
Intelligent Excellent Products' R&D Center Enterprises Products
Jack's corporate culture is rooted in the Taizhou culture of harmony and the Dachen Island's reclamation spirit. Through long-term
practice and exploration the Company has integrated traditional Chinese cultural elements with Western management philosophies. Economy and Department of Commerce of Zhejiang Provincial Information Technology Zhejiang Province Market Supervision and
By elevating corporate culture to a strategic level Jack enhances its core competitiveness through cultural innovation. It continuously Department of Zhejiang Administration Bureau
enriches and refines its cultural framework actively practicing a culture that is customer-oriented focused and dedicated continuously
transformative relentlessly striving and rooted in filial piety kindness and gratitude. This culture provides an inexhaustible driving force
and source of strength for Jack's comprehensive high-quality development. Zhejiang AAA-Level 'Contract- Zhejiang Province Key Enterprise for
Abiding and Trustworthy' High-Value Patent Deepening the Reform of Industrial
The Company consistently upholds its mission and vision of "Intelligent Connection for Total Solution Grants Intelligent Garment Enterprise Cultivation Platform Worker Team Building
Manufacturing Unlimited Possibilities." It embodies the corporate spirit of "Harmony Integrity Fighting and Rising" and adheres to
Zhejiang Provincial Zhejiang Intellectual Zhejiang Provincial
the core values of "Customer First Focused Dedication Striving Relentlessly and Shared Success." Our goal is to create value for Market Supervision and Property Office Federation of Trade Unions
customers well-being for employees opportunities for suppliers returns for shareholders and benefits for society. Administration Bureau
Development strategy
Zhejiang Province Model Scientific and Technological China Brand Value Evaluation:
Unit for Improving Employee Progress Award from the China Brand Strength Score of 896
The Company remains committed to its primary focus on intelligent garment manufacturing seizing the strategic opportunity presented Quality of Life National Light Industry Council Brand Value of RMB 2.846 Billion
by the realignment of the global garment industry chain and supply chain. We adhere to the core development principles of "All
Employees Focusing on Key Accounts Full Efforts in Overseas Expansion and Firm Commitment to Long-Term Investment." With Zhejiang Provincial China National Light China National Light Federation of Trade Unions Industry Council Industry Council
AI and humanoid robots as our core technological pillars the Company has planned a three-tiered growth curve: single-machine
blockbusters digital intelligent total solutions and AI digital intelligent total solutions steadily advancing the strategic upgrade from
single blockbuster products to Aitu AI-powered digital integrated production line. Leveraging this upgrade path the Company deeply
integrates cutting-edge AI and humanoid robot technologies with the entire garment manufacturing process. This precisely addresses Typical Case of Green and Top 100 Enterprises in China's
the core industry pain points of labor shortages and a generational gap in industrial workers comprehensively assists downstream Low-Carbon Transformation Top 200 Enterprises in China's Light Industry by Scientific and
in Light Industry Light Industrygarment factories in their transformation and upgrading and fully enhances customer production efficiency flexible manufacturing Technological Strength
capabilities and order delivery capacity helping customers expand their production boundaries and secure high-quality orders. China National Light China National Light China National Light
Industry Council Industry Council Industry Council
Honors and awards
Intelligent Manufacturing Zhejiang Provincial
System Solution Top 50 Enterprises in China's Top 10 Enterprises in China's
"Pioneer Project" National Civilized Unit
Headquarters Leading
Enterprises in Private Economy Light Industry Equipment Light Industry Industrial Sewing 2025 Top 500 Private Enterprises Manufacturing Sector Machine Sector in R&D Investment
Ministry of Industry and The National Economy and
Information Technology of the Civilization Office Information Technology China National Light China National Light All-China Federation of
People's Republic of China Department of Zhejiang Industry Council Industry Council Industry and Commerce
List of Excellent New Industrial Zhejiang Province AI Application Zhejiang Made
Products in Zhejiang Province Benchmark Enterprise Excellent Products 2025 Top 200 Private 2025 Top 200 Private Enterprises
2025 Top 500 Private Manufacturing Enterprises in in Zhejiang Province by R&D
Economy and Economy and Economy and Enterprises in Invention Patents Zhejiang Province Investment
Information Technology Information Technology Information Technology
Department of Zhejiang Department of Zhejiang Department of Zhejiang All-China Federation of Zhejiang Federation of Zhejiang Federation of
Industry and Commerce Industry and Commerce Industry and Commerce
First batch of typical
empowerment model cases Top 100 Enterprises for
for AI-enabled manufacturing Patent Creativity in Zhejiang Zhejiang Province's First Unit
in Zhejiang Province Province (Ranked 30th) (Set) of Equipment
Golden Camel Award for Benchmark
2025 Top 200 Private Enterprises in
Economy and Economy and Economy and Case in Brand Building for Yangtze Zhejiang Province by Invention Patents
Information Technology Information Technology Information Technology River Delta Enterprises
Department of Zhejiang Department of Zhejiang Department of Zhejiang Zhejiang Federation of Brand Building Special
Industry and Commerce Committee of the Yangtze
River Delta City Economic
Coordination Council
11 122025 Environmental Social and Governance (ESG) Report
ESG management ESG management framework
The highest decision-making body for ESG matters in Jack Technology is responsible for reviewing and
ESG concept and management structure monitoring the Company's ESG strategy policies risks and target performance controlling the direction of the
Board of Company's ESG strategy and is ultimately responsible for ESG matters.Directors
While driving the pursuit of economic benefits Jack Technology also prioritizes social responsibility and sustainability. By identifying
and assessing its business strategies key risks development opportunities relevant laws and regulations and stakeholder needs
combined with national policies and industry development trends Jack Technology has formulated its ESG strategic policy goals and It consists of members of the Board of Directors led by the Chairman of the Board of Directors and is mainly Strategy and
Sustainability responsible for conducting research and making recommendations on the Company's long-term development implementation roadmap. In 2025 the Company received an AA rating in the Wind ESG Ratings.Committee strategy (long-term development plan business strategy development policy major investment and financing and
ESG-related matters) and deliberating on the Company's ESG strategy policies risks and target performance.It is composed of the heads of ESG-related functional departments and is responsible for promoting and
Maintaining Innovation Vitality to Lead a ESG Working coordinating the Company's ESG work identifying ESG risks and issues and reviewing and evaluating the Group
Sustainable Future working group's work report.Global governance Innovation vitality Green development Global philanthropy
Proportion of High-efficiency low-carbon Achieve a 20% reduction Filial Piety Sewing "Five
directors with solutions to improve quality in carbon emissions from One Thousands" Plan
global operations 30%
background reduce costs and increase operational managementefficiency Build an industrial community and promote
Proportion of Achieve a 20% reduction
female directors 30% Remote services based on in carbon emissions per
university-enterprise
integration
2030 and senior AI and IoT technologies unit of output valueexecutives
ESG goals 2000 public welfare Building a global employee Assist core suppliers in
Achieved digital training sessions training framework achieving a 15% reduction annually serving 10000 Jack Technology 2025 ESG special trainingmanagement of 100%
core suppliers in emissions companies for freeStarting new businesses to
unlock more opportunities Localized operations
Ratio of R&D cultural integration and
investment 12% promotion of global
development In June 2025 the Company held its ESG management system kick-off meeting formally integrating ESG into its core corporate
strategy. Led by management the meeting clarified the ESG development plan and its strategic significance established a special
Building a culture of integrity working group defined the division of responsibilities among departments and set the principles for collaborative advancement.This laid a solid foundation for the standardized construction of the Company's ESG management system. In November 2025
the Company invited external experts to conduct specialized ESG training which focused on interpreting the latest ESG policies
disclosure frameworks and key issue requirements. This effort unified internal understanding clarified work standards and
provided support for the compliant preparation of the Report and the enhancement of management efficiency.Benchmarking
SDGx
Key grip Innovation Jack Business Long-termism Ecological chain Filial Piety Sewing Research Institute School inputs construction Foundation
Capability
support ESG system ESG data management ESG disclosure
13 142025 Environmental Social and Governance (ESG) Report
ESG risk management Identification steps
We incorporate ESG risk management into our overall risk management system to ensure that the Company effectively identifies Understanding the context of the Company's activities and business
assesses and responds to ESG-related risks while pursuing sustainable development. The Company has established a comprehensive
01
ESG risk management framework covering the three core areas of environmental risks social responsibility risks and corporate
governance risks and continuously enhances its ESG risk management capabilities. Understanding the Company's value chain and strategic planning.Interpreting the sustainability context and market environment in which the Company operates.Executive compensation and ESG performance Understanding the value chain segments where each topic has an impact and the main stakeholders affected.The Company has integrated ESG performance into the executive performance appraisal indicators. The appraisal covers multiple
dimensions including work safety (such as but not limited to safety accidents and safety penalty incidents) environmental protection (such
as but not limited to pollutant emissions energy efficiency management and environmental penalties) anti-corruption lawful and compliant Establishing a list of topics
operations and risk management. A dynamic management mechanism has been established linking appraisal results directly to executive
annual salaries long-term incentives and promotions creating a long-term mechanism that balances incentives with constraints. 02
Based on the 21 topics in the Guidelines supplement industry-specific topics by referencing domestic and international
sustainability standards and remove topics with low industry relevance.Materiality analysis In conjunction with the Company's actual situation and communications with stakeholders conduct preliminary identification
and screening of relevant sustainability topics and analyze the actual and potential impacts risks and opportunities
associated with these topics.To clarify the basic scope and priorities of ESG development Jack Technology conducted an analysis of relevant ESG topics from the
dual perspectives of impact materiality and financial materiality to identify issues of significance to the Company. This process was
based on the dual materiality assessment method outlined in the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of
Listed Companies – Sustainability Report (Trial) (hereinafter referred to as the "Guidelines") and referenced international sustainability
information disclosure standards such as the Global Sustainability Standards Board (Global Reporting Initiative (GRI) Standards) (2021 Confirming materiality assessment of topics
edition) and the International Sustainability Standards Board (ISSB). Based on the analysis results Jack Technology identified a total
of 34 topics with significant impact. In terms of disclosure organization the Company strictly adheres to the four-element framework 03
of "governance—strategy—impact risk and opportunity management—metrics and targets" for a structured presentation of financially Impact materiality assessment
material topics. Communicate with stakeholders through questionnaire surveys and reference the opinions of internal and external experts to
rank topics by impact materiality.Financial materiality assessment
Communicate with personnel related to the Company's management and sustainable development through questionnaire
surveys and reference the opinions of internal and external experts to rank topics by financial materiality.Consolidation of dual materiality results
After normalizing and statistically analyzing the impact materiality and financial materiality matrices a dual materiality matrix
is formed and the boundaries of significant issues are defined.Establishing a list of topics
04
Following review and confirmation by the Company's Board of Directors topics with high financial materiality for the year
2025 (Climate Change Tackling Waste and Pollutant Management Energy/Resource Conservation and Renewable Energy
Utilization Environmental Management System Establishment Occupational Health and Safety Product Quality and Safety
R&D and Innovation Supply Chain Management and Business Ethics and Anti-Corruption) will be disclosed with priority in
the sustainability report according to the four-element framework.
15 162025 Environmental Social and Governance (ESG) Report
Based on national policy directions industry development trends regulatory requirements and stakeholder concerns we have
systematically conducted a materiality assessment of topics grounded in the Company's actual strategic development. This process Stakeholder identification and communication
involved benchmarking against peers and soliciting suggestions from internal and external stakeholders ultimately forming the 2025
ESG material topic matrix. We are committed to building a diversified mechanism for stakeholder dialogue. By establishing a systematic communication platform
and multi-dimensional communication channels we accurately identify and effectively respond to the concerns of all parties better
meeting the expectations and demands of our stakeholders.
2025 ESG material topic matrix
High
Energy/resource conservation and Key stakeholders Key concerns Communication methods and channels
Promotion of renewable energy utilization
Reducing carbon emissions 2 environmental
protection concepts 5 * Employee remuneration and benefits * Equal and diversified employment
R&D of green products Industry cooperation 7 1 Addressing climate change
and exchange * Employee training and development * Protection of employee rights8 Industry-academia-
18 Establishment of an environmental research cooperation * Occupational health and safety * Comprehensive compensation systemmanagement system Employees
Digital and intelligent transformation 419 * Employee care and incentives * Clear promotion system
24 14 Waste and pollutant Employee equality 3
Employee management * Wide range of employee activitiesand diversified
16 15 engagement and employment R&D and innovation 23 * Robust health and safety systemsatisfaction
Employee training and Employee care 10
development and incentives
9 R&D and application of clean technologies *
Supplier management * Responsible sourcing
20 6 Green office Occupational health and safety * Distributor management * Supply chain management
Social welfare initiatives 21 Rural revitalization 17 22 Product quality * Industry development * Transparent procurement
and safety
11 Employment of highly
Partners
educated/professional talent 12 Employee communication and * University-enterprise cooperation * Win-win cooperation with distributors
25 democratic management
27 Supply chain management * Industry cooperation and exchangeCorporate governance 28 Protection of customer 33 ESG management Business ethics and * Industry-academia-research cooperation29 Compliant operation and consumer rights 30
31 32 Intellectual property protection
anti-corruption
Risk control and internal control 13 * Product R&D and innovation * Technological innovation
34 Party building leadership Anti-discrimination anti-
26 Responsible forced labor and anti- * Product quality and safety * Digital and intelligent transformationsourcing harassment/abuse
* Customer rights protection * Quality assurance
Low Financial materiality High Customers * Data security and privacy protection * Customer feedback handling
* Timely and professional services * Customer satisfaction surveys
* Information security management
* Stable performance growth * Compliant operation
* Shareholder rights and interests * Comprehensive risk management
Shareholders protection * Periodic and ad-hoc information disclosure
* Transparent information disclosure * Open investor communication channels
* Sound risk control and compliance * Intellectual property protection
* Compliance with regulatory * Compliance with laws and regulations
requirements * Cooperating with regulatory inspections
Government
and regulatory * Responding to national development * Periodic and ad-hoc information disclosure
agencies policies * Strengthening publicity of integrity in
* Business ethics and anti-corruption professional practice and self-discipline
* Sound risk control and compliance * Comprehensive risk management
* Social and public welfare undertakings * Volunteer activities
Community and
the public * Rural revitalization * Charitable donations
* Common prosperity * Starlink Cloud alliance
1718
Impact materiality2025 Environmental Social and Governance (ESG) Report
Special topic: Intelligent total solutions activate Building a fully automated AI production line to propel garment manufacturing toward a less
labor-intensive and more flexible future
intelligent garment manufacturing AI-driven value By deeply integrating modules such as automatic fabric loading intelligent cutting intelligent automatic gripping intelligent
delivery and automated sewing the Company is progressively achieving seamless connectivity between cutting and sewing in
leads the future of the industry garment processing centers—eliminating inter-process transfer waste and enabling end-to-end data flow—to build an AI-powered
fully automated and minimally staffed production line. Built upon six core values—"minimal labor fabric savings production
flexibility zero cut-piece inventory strong order-taking capability elastic capacity and significantly shortened production cycle"—
By integrating cutting tables intelligent industrial sewing machines hanging systems software and warehousing systems the Company Jack's Aitu AI-powered digital integrated production line solutions have disruptively surpassed traditional intelligent integrated
has launched an integrated intelligent solution. It has successfully established benchmark smart-connected client showcases in production models. This leap achieves full-process automation with the management system and fully automated equipment
countries including Vietnam Bangladesh Cambodia Indonesia and Uzbekistan progressively advancing the global key client strategic delivering 100% process automation.layout. Under the "AI-driven" initiative the Company will leverage two new offerings—the "Aitu AI-powered Digital Integrated Production
Line" and the "Humanoid Robot"—to explore deep AI integration across the entire sewing process driving production toward reduced
labor dependency and greater intelligence.Ai10 & humanoid robot: A new paradigm in intelligent garment manufacturing with AI vision and
flexible feeding technology
By integrating the Aitu humanoid robot and the Ai10 intelligent industrial sewing machine the Company has achieved a
breakthrough intelligent manufacturing scenario: "autonomous sewing." The "Sky-Fox Eye AI Vision System" identifies sewing
waste based on real-time AI gesture analysis significantly enhancing operators' precision and productivity. The "AI Fully Digital
Flexible Feeding Technology" enables machine setup in one second ensuring stable high-quality stitching output. With AI as
its core driver this solution provides the garment manufacturing industry with a systematic pathway to improve quality increase
efficiency and reduce costs propelling the sector toward intelligent high-end and customized production. In the future this Aitu AI digital production total solution
technology will continue expanding into core global industrial regions empowering partners to overcome production bottlenecks
and jointly shape a new paradigm for intelligent garment manufacturing.Intelligent total solutions showcase in South China kilometer challenge forges a quality benchmark
In March 2025 the Company showcased its two flagship
blockbusters and intelligent total solutions at the South
China International Sewing Machinery & Accessories Show
demonstrating product performance through a live kilometer-
long sewing challenge. Through the integrated synergy of
intelligent solutions the Company helps customers achieve
leaps in production efficiency and intelligent manufacturing
empowering garment enterprises to effortlessly upgrade both The Company showcased its "two flagship products" and
rapid response capability and product quality.Ai10 & humanoid robot intelligent total solutions at the South China International
Sewing Machinery & Accessories Show
19 202025 Environmental Social and Governance (ESG) Report
Jack global technology conference: Shaping the future of the industry with AI and Launching the world's first AI-powered intelligent industrial sewing machine leading garment
green innovation manufacturing into a new era of "AI Collaboration" with two core technologies
In July 2025 the Jack Global Technology Conference themed "Innovation for the Future" was grandly held at the Wyndham In September 2025 Aitu—Jack Technology's first brand dedicated to deep AI integration in garment manufacturing—held a
Hotel in Taizhou. The event brought together numerous top global academicians industry leaders and technology pioneers to launch event in Shanghai to officially unveil the world's first AI-powered intelligent industrial sewing machine the Ai10. The
discuss the revolutionary applications of artificial intelligence in intelligent garment equipment. The Chairman stated: "Over the product integrates two proprietary core technologies: the "Sky-Fox Eye AI Vision System" and the "AI Fully Digital Flexible
next 30 years we will continue practicing green development principles pioneering new frontiers in green energy empowering Feeding Technology" enabling it to deeply understand and collaborate with sewing operators. It is estimated that the Ai10
the garment industry's green and sustainable transformation contributing to carbon neutrality and achieving success in humanoid improves machine setup efficiency by 80% shortens training cycles by 60% and boosts individual operator efficiency by 8–15%.robots and AI-driven unmanned operations." This launch marks a transformative shift for the garment manufacturing industry—from traditional models to a new era of "AI
collaborative development."
Partnering with industry chain collaborators to build intelligent total solutions benchmark factories co-
creating a new era of intelligent and efficient manufacturing
The Company has deepened joint innovation with multiple renowned partners across the industrial chain focusing on cutting-
edge technologies and systematic solutions to co-develop and deploy intelligent garment manufacturing equipment jointly
building intelligent total solutions model factories.Building on long-term mutual trust all parties achieve industrial synergy by fully leveraging their respective strengths—uniting
collective capabilities through harmony and pursuing win-win outcomes through collaboration—driving production toward
intelligent unmanned highly efficient high-quality and green transformation."Innovation for the Future" Jack Global Technology Conference Intelligent total solution benchmark factory
21 222025 Environmental Social and Governance (ESG) Report
Innovation-driven R&D
Development generation Pre-research generation Exploration generation
Governance
New trends in the garment industry AI-powered digital integrated Fully digital and
Adaptation to quick response rise production line Robot system unmannedCluster-based
The Company has established a comprehensive R&D of technical fabrics Garment CAD autonomous operation robots
management architecture and a global collaborative network.By setting up 14 R&D centers worldwide and preparing to Flagship blockbuster
automatic machine Fully
build new innovation centers it has formed a multi-country Focus on Modular elec-
resource-integrated R&D landscape. This system provides blockbust- Two flagship blockbusters
tronic
ers ＋ Metaverse factory
a solid organizational foundation for implementing the Three-generation A.M.H. Urus Digital
product adjustment
AI
large
Company's innovation-driven development strategy. Other blockbusters model
Blockbuster development model: By seamlessly integrating Pre-sewing + in-sewing + Production line AI empowerment
the IPD (Integrated Product Development) and IPMS post-sewing 3D CAD
Intel- Intel-
(Integrated Product Marketing and Sales) processes we ligent Digital Intelligent logistics ligent AI cutting and total spreading
have established a deeply synergistic mechanism between total man- Data analysis Mastering
solutions agement Lean efficiency im-
solutions human AI standalone Intelligent total
product competitiveness and market execution. Leveraging Intellectual property management system certification provement 2.0 experience machine solutions 3.0
CAM
tools such as field ethnography the 8-step demand analysis 1.0 AI hanging systemSoftware: Data integration
methodology "cannon fodder" concept testing shadow across pre-sewing in- Software: AI large model MOM
sewing and post-sewing application
observation innovation insight frameworks and the 3-in-1
Value Model we precisely identify and resolve core customer
pain points. This has forged Jack’s unique blockbuster Ultimate goal Enabling 120 million garment industry workers worldwide to work with ease and happiness!
product development model successfully launching flagship
blockbusters such as "A.M.H." and "Urus" resulting in rapid Three-generation product R&D strategy
market share growth. Through this model we are executing
a strategic transformation from standalone automation to AI
digital integrated production lines.ISO 56005 International Certification for Innovation
and Intellectual Property Management Capability
Organizational Structure of Product Department
CEO
Marketing Department Product Department Other Departments
Platform and
Gen
Global General Political Advisorye rDael pStaarftfm ent
Product Family/Line Middle/Back-End
Commissar Department OOrrggaanniizzaattiioonn Intelligent Total Solutions Automatic Machine Product Electronic Control Platform Product Family Family Department
Global Strategic Key Specialty Machines and Multi-Axis Mechanical Platform
Account Department Product Advisory Aitu Product Family Electronic Control DepartmentSystems Product Family
Department Electronic Control
Global General Staff Garment Robotics Development DepartmentGlobal ADdevpisaorrtym Deenpt artment Product Line Lockstitch Product Line
Reliability and
Verification Center
Global Customer Service Embroidery Machine Overlock Product Line
Department Technology Product Line Global General Political
Advisory Commissar Department
Department Digital Printing Machine
Overseas Theaters Product Line Coverstitch Product Line Quality Process and Digital
Management Department
Economy Cutting Bed Heavy Duty Product Line Science and Technology Innovation
Domestic Theaters Product Line Management Department
Customers Needs Collection Analysis and Distribution Implementation and Verification Customers
25 262025 Environmental Social and Governance (ESG) Report
Strategy
The Company has established a long-term development policy with R&D innovation as its core driving force systematically planning for Identified opportunities related to innovation-driven R&D
the future by implementing the "Intelligent Total Solutions" strategy and clear business growth paths. The Company commits to investing
no less than 8% of its annual sales revenue in R&D and plans to increase this proportion to 10% within the next 3-5 years. In terms of
resource allocation the Company implements a "433" strategy allocating investment in a 40% 30% and 30% ratio to the development Opportunity type Opportunity description Response measures
pre-research and exploration generations of products respectively with increasing investment in areas including humanoid robots and
AI digital production lines. This series of strategic deployments aims to continuously strengthen our technological leadership and build a
solid foundation for the Company's high-quality and sustainable development. Through breakthroughs in 1.Creating super blockbusters.core technologies like AI and 2.Leading technological roadmaps: Early investment in
adaptive control the Company is
Identified risks related to innovation-driven R&D Technological capable of defining new product exploratory fields such as AI-powered unmanned operations
leadership and categories and setting new industry and humanoid robots ("Exploration Generation" investment)
industry standard benchmarks (such as world lays the foundation for defining future intelligent manufacturing
Risk type Risk description Response measures records) seizing the commanding
heights of the industry's intelligent rules and participating in or leading standard-setting.upgrading.In globalized joint R&D and 1. Establish a comprehensive intellectual property management
cut t ing-edge technology system and enhance the team's protection and risk identification
Technology exploration there are risks capabilities through specialized training. The accelerated shift in the 1.Expanding high-value business: Upgrade from single-
leakage and of core technology leakage 2.Formulate and implement policies such as the Patent Incentive garment manufacturing industry machine sales to "Green Digital Intelligent Total Solution"
intellectual infringement or inadequate Management Measures and the Trade Secret Management Explosive growth toward smaller orders unmanned and "AI Digital Intelligent Total Solution" to increase average
property patent layout which could Measures. in the intelligent operations and digitalization opens transaction value and customer stickiness.weaken the Company 's manufacturing up a vast incremental market for 2.Building an industrial ecosystem: Evolve from an
technological leadership. solutions market the Company's "AI-driven digital equipment supplier to an industrial ecosystem creator by integrating both supply and demand through a global flexible
integrated solutions." intelligent manufacturing platform generating continuous
Cont inuously increasing 1.Implement the "433" R&D investment strategy to balance service value.investment in the "Exploration resource allocation between development pre-research and
Generation" and a higher exploration thereby managing long-term risks.R&D expense ratio may face 2. Promote the "Joint Innovation with Key Accounts" model deeply
High investment Engaging in deep collaboration 1.Ensuring precise implementation of customer needs: risks such as technology integrating the needs of the top 20 clients into product planning (SP)
and uncertain Customer loyalty with top global clients and Guarantee that over 80% of new product development paths market acceptance or to ensure R&D direction is closely aligned with market demand. and value industry chain partners spanning requirements originate from joint innovation supporting the
commercialization processes 3.Strengthen end-to-end management and evaluation from project co-creation from "strategy-to-business" to "immediate mass production upon launch" strategy.not meeting expectations. initiation to market launch through the IPD system and PLM through deep "ecosystem-to-scenario" allows us 2.Enhancing brand loyalty and market share: Deepen
system to increase the success rate of R&D. collaboration to lock in demand in advance and partnerships and expand market share and influence among high-
co-create long-term blueprints. end clients by becoming their indispensable innovation partner.R&D is highly dependent on 1.Implement the "Comprehensive Incentive 3+3 System" which
high-end talent especially combines values assessment with technological innovation Platform credentials such 1.Building talent barriers: Gather a first-class R&D team to
Core talent loss i n t h e f i e l d s o f A I a n d performance to stimulate the creativity and sense of belonging of as a national-level enterprise form a continuous technological breakthrough capability.and organizational automat ion. Insuff ic ient R&D personnel. High-end technology center and a 2.Enhancing innovation quality and efficiency: The
innovation vitality incentives or organizational 2.Build national and provincial high-end R&D platforms and innovation postdoctoral workstation along
insufficiency risks rigidity may lead to talent loss undertake major national science and technology projects to platforms as a with undertakings like the national combination of a high-quality stable team and a high-level
or a decline in innovation provide talent with high-level career platforms. magnet for top key project for "intelligent robots" platform can accelerate technological breakthroughs and
efficiency. talent create a powerful brand effect that the commercialization of results improving the R&D input-
helps the Company attract and output ratio.retain top scientific research talent.
27 282025 Environmental Social and Governance (ESG) Report
Impact risk and opportunity management AI full speed feeding system
Performs multi-modal intelligent detection at a speed of 32000 times per second calculating the optimal
pressure-to-feed ratio as soon as the slightest change in fabric is detected.Through continuous investment in core technologies and cutting-edge exploration the Company effectively seizes opportunities in Delivers precise presser foot force through the presser foot transformer technology effectively coordinating
the industry's intelligent upgrading and transforms technological innovation into a competitive market advantage. In terms of risk with the Smart Rhino feeding technology to output precise feeding force achieving full-speed sewing over
fabric thicknesses that vary by a hundredfold without slowing down.management the Company systematically mitigates R&D risks such as technology leakage and infringement through a comprehensive
intellectual property protection system regular compliance training and strict control over the innovation process. This ensures the
sustainability and security of its innovation activities supporting the Company's long-term high-quality development.
0 degree line technology
By simulating a thread quantity model and optimizing the kinematic coordination of various mechanisms
Systematically conduct specialized intellectual property training to comprehensively enhance this technology precisely controls the thread's motion state and tension changes minimizing sewing
the R&D team's capabilities in innovation protection and risk prevention defects such as thread breakage and skipped stitches. The use of a nano-coating reduces thread path
resistance by 30% and enhances wear and rust resistance.In 2025 the Company conducted systematic and multi-level specialized intellectual property training for all R&D and technical
teams. Over 100 sessions were held throughout the year totaling more than 240 training hours. The content was closely integrated Metis control technology
with R&D practices focusing on enhancing the capabilities of R&D engineers in foundational IP knowledge patent disclosure
drafting infringement risk identification and innovation point mining. Concurrently the professional skills of patent engineers Multi-axis interpolation for precise positioning ensuring cutting accuracy.in patent searching layout and analysis were specifically strengthened. This series of training sessions effectively raised the Ultra-high-speed cutting is achieved through technologies such as HSC high-speed cutting rapid-
positioning blade sharpening and optimized control logic.team's awareness of intellectual property creation application protection and management building a more solid foundation for
Microsecond-level ultra-high-speed response ensures precise execution by the control system.compliance and risk control in the Company's technological innovation activities.Short thread tail technology
By adopting ultra-short thread tail technology and reducing the distance from the needle plate to the
bottom trimmer the machine can achieve extremely short thread ends. This resolves a key customer pain
point in high-end apparel where thread ends from buttonholing machines require secondary trimming
thereby improving garment production efficiency and meeting the demands of high-quality shirt sewing.AMH fabric adaptive technology
This technology rapidly senses changes in fabric and adjusts the coordination of feeding and needle
penetration force in real time. It adapts to the material achieving a world-first capability for continuous PaaS platform low-code software technology
sewing on different fabrics without machine adjustments.Relying on low-code and platform-based architectural capabilities we have built a foundational software
technology stack covering development integration and application configuration. It supports the
rapid reuse of functional modules flexible orchestration of business processes and continuous system
evolution effectively reducing repetitive development investment and enhancing the efficiency of digital
project implementation and the sustainable operational capability of systems.Nine-brain octopus AI chip technology
Its intelligent AI algorithm performs up to 10000 parallel multi-tasking computational updates per
second enabling intelligent sensing and real-time response to different fabrics such as thick thin and AI motion vision analysis technology
elastic materials. Real-time recognition analysis and structural decomposition of operational movements through AI vision
algorithms extracting key work step information to assist in forming standardized motion models and
training materials thereby promoting the digital preservation of production experience and enhancing
employee training efficiency operational consistency and lean management levels.Presser foot transformer technology
It intelligently senses minute changes in fabric within 0.00006 seconds and adjusts the presser foot Multi-size-in-one template for pocket setting machine
pressure in real time. In the time it takes you to blink once Urus completes 5000 pressure adjustments.An innovative adjustable template for the pocket setting machine was designed. Changes made on
the display screen allow the template to switch between multiple sizes significantly reducing template
changeover time. The number of templates is reduced by 1/2 to 2/3 greatly improving the machine's
overall economic efficiency.Smart Rhino feeding technology
With a combined torque of up to 9.2 N·m equivalent to the power output of a three-wheeled motorcycle DCP intelligent pressure sensing technology
it also controls feeding force with a precision of 0.01 N·m. Like a high-performance sports car it matches
the optimal power output for both straight-line acceleration and cornering ensuring precise feeding force is The DCP intelligent pressure sensing device mechanically amplifies changes in fabric thickness during
sewing which are then detected by a sensor. As the machine approaches a bulky seam the main shaft
delivered for every degree of the 360-degree rotation based on seam thickness requirements. motor automatically reduces speed ensuring perfect stitches over cross-seams.
29 302025 Environmental Social and Governance (ESG) Report
R&D and innovation platform Innovative incentive systems
Patent incentive Product development commercial R&D management department
Based on our continuous investment and systematic construction in R&D and innovation the Company has built a formidable R&D and management scheme success reward system bonus pool plan
innovation platform. We have obtained a series of national and provincial-level platform qualifications including a National Postdoctoral
Research Workstation a Provincial Key Enterprise Research Institute and a Provincial Academician and Expert Workstation. The Encourage innovation achievements In order to mobilize the work enthusiasm Energize the organization guide all
Company has also undertaken 10 major national science and technology projects including the National Key R&D Program's key to obtain patent rights improve the o f the personne l o f the p roduc t departments to integrate and assist each
special project on "Intelligent Robots" laying a solid foundation for research and development. quality of invention patents promote development project team to encourage other and pull all employees to self-
the implementation and application the outstanding personnel to become motivate and challenge high goals so as
To ensure that innovation is closely aligned with market demand the Company has established a systematic and diversified customer of invention patents and motivate successful quickly and to promote the to enlarge the cake and achieve long-term
demand insight mechanism. We have defined the methods frequency and rules for demand research comprehensively applying employees to declare patents rapid development of the Company effective and high-quality growth
various methodologies and tools such as Innovation Insight Field Research Shadowing Early Hypothesis Testing NPS Quantitative
Analysis Innovation Workshops and the 3-in-1 Value Model. Simultaneously through online and offline channels like joint innovation Flagship Project Award Five-Million-Yuan Category Million-Yuan Technical Innovation Award Breakthrough Award
with key accounts new product launches industry exhibitions high-level visits technical exchange meetings service days and third-
party research we extensively deeply and differentially collect the needs expectations and preferences of customers in various market To stimulate the team's initiative and To encourage employees to engage with To inspire technical personnel to tackle
segments. The Company systematically processes and provides feedback on the collected information forming a closed-loop demand sense of urgency conquer strategic customers proactively address pain long-standing and difficult technical
management system which has been recognized by relevant parties as an effective pathway for conveying and responding to user high grounds as quickly as possible points in current garment manufacturing problems within the industry and the
needs and fostering long-term cooperation. seize first-mover advantages facilitate processes and efficiency create products Company overcome these challenges
the achievement of the Company's and solutions through technological enhance product competitiveness
strategic goals and enhance team innovation and demand insight pioneer and improve the commercial value
R&D incentives cohesion and combat effectiveness new product categories and help conversion of products
customers alleviate their challenges
The Company is committed to creating a scientific and diversified incentive mechanism for R&D personnel to fully stimulate their Blockbuster Product Award Technology Development Project Award
initiative and creativity. Under the framework of the "Comprehensive Incentive 3+3 System" the Company continuously improves its
incentive system. This year we took a significant step forward by incorporating values assessment into the evaluation system guiding To motivate the product development To incent iv ize R&D personnel to
R&D personnel to not only focus on technological innovation but also to align with the Company's core values thereby promoting the project team and ensure the make positive contributions during
synchronized growth of individuals and the enterprise. commercial success of new products the technology project development
upon market launch process and to mobilize the initiative Achieved
and creativity of all R&D staff
4496
Operational Excellence: Fostering company-wide innovation and vitality
31 322025 Environmental Social and Governance (ESG) Report
Intellectual property Ethics of science and technology
The Company has established a systematic and comprehensive intellectual property management system based on the Patent Law of The Company emphasizes the use of customer information collecting data on customer needs and expectations through various
the People's Republic of China Copyright Law of the People's Republic of China Trademark Law of the People's Republic of China and channels and methods such as intelligence systems market research feedback from sales visits and direct customer feedback. The
other relevant laws and regulations as well as national standards such as GB/T 29490-2013 Norms for the Management of Intellectual collected information is then consolidated analyzed and summarized. At the corporate level this information is primarily used for
Property Rights of Enterprises. It has formulated a series of systematic documents including the Intellectual Property Compliance strategic decision-making and business innovation. Differences in customer focus serve as a basis for customer segmentation and
Management Handbook Patent Incentive Management Measures and Management Measures for Technological Secrets and has inform the formulation and adjustment of strategies. At the departmental level the collected customer information is a crucial source and
set up a specialized intellectual property department responsible for the whole process of management. The Company has passed basis for process improvement and innovation identification. At the operational level customer feedback is the starting point and source
the certification of the Intellectual Property Management System and has continued to improve the mechanism for the management of product innovation. Additionally by understanding the needs and characteristics of competitors and potential customers the Company
of innovation and intellectual property which is aimed at regulating the creation utilization protection and management of intellectual can from a strategic perspective consider whether to include them as potential target customers. This provides a reference for market
property and providing a solid guarantee for the transformation and protection of the results of technological innovation. expansion and for measures to win over potential clients as well as for improving products and services to attract their attention and
ultimately secure their business.Key performance
Indicators and targets
Valid patents and software Including invention Utility model The Company adheres to R&D innovation as its core driving force establishing a clear business growth curve and brand differentiation
copyrights Total valid patents patents patents path. Through systematic strategic initiatives and a rolling budget mechanism the Company continuously promotes product innovation
3668 3034 1221 1545 and solution upgrades and has set clear R&D investment targets to strengthen its technological leadership and support high-quality items items items items development.
Indicators and targets 2025 achievement status
AI software talents [including Product New AI software talent
Design patents Accumulated software Increase the ratio of R&D expenditure to sales Achieved with the ratio of R&D expenditure to Department - Aitu Intelligent total solutions in 2025
copyrights Product Family (excluding hanging and
268 revenue to 8% sales revenue increasing to 8.4%warehousing) headcount]items 634 19items 51
33 342025 Environmental Social and Governance (ESG) Report
Quality Assurance
Governance Key honors
The Company has established a systematic and outstanding quality management system dedicated to achieving end-to-end high-
quality development. The senior management leads by example actively fulfilling quality responsibilities and consistently treating
quality as a core requirement of the Company's business development strategy. Through the decomposition of SP (Mid-to-Long-Term National-Level 5G Future Factory in Zhejiang Province
Strategic Planning) and BP (Annual Business Plan) quality requirements are integrated into the entire value chain including strategy Factory (Sole Recipient China's Benchmark Zhejiang Province Key Industrial Internet
finance marketing R&D manufacturing service human resources and digitalization achieving a dual-driven approach where quality in the Industry) Smart Factory Platform
management and business development mutually reinforce each other. A four-tier quality management structure has been established:
"Quality Committee - Chief Quality Officer - Business Unit Quality - Operational Level." The Chairman and EMT senior members form
the Quality Committee which serves as the highest leadership body for quality management. An EMT member is also appointed as the Typical Case of Enterprise Innovative Leading Zhejiang Province's Zhejiang Province AI Cloud Adoption by the Ministry Application Case for Fourth Batch of Industry
Chief Quality Officer to oversee the Company's quality operations and promote comprehensive quality improvement. Quality leaders Application Benchmark of Industry and Information Industrial Internet Cloud Application
and teams are established in each business department/subsidiary implementing a "one-vote veto for quality" where the head of each Enterprise Technology of the People's
Republic of China Platforms Demonstration Platforms
business unit bears primary responsibility for its quality performance. Through this organizational guarantee quality management is
systematically engineered as a CEO-led initiative with full employee participation end-to-end coverage and cross-domain collaboration.Demonstrating industry benchmark status in digital quality construction
The Company has established nearly a kilometer of end-to-end quality management checks and balances and processes along with a
mechanism for collecting and controlling quality risk information. These fully cover the entire process including strategy finance R&D
manufacturing and service effectively supporting the efficient operation of the outstanding quality management system. In addition we
are deeply promoting a "Zero-Defect" quality culture transformation adhering to a customer-demand-oriented and customer-satisfaction-
targeted approach and guiding all employees to deeply practice the "Doing It Right the First Time" code of conduct. Quality red line management
To ensure the effective implementation of the outstanding quality management system the Company has established a dedicated
To further enhance the quality awareness of all employees and enforce strict work discipline the Company has revised the "Quality
quality management department—the Quality Process IT Department. It integrates quality management responsibilities into business
Red Line Management Regulations" to clarify the baseline requirements for quality management. These regulations aim to ensure that
processes using these processes as a vehicle to continuously optimize the quality organization in line with the Company's strategic
the "customer-oriented" philosophy is effectively implemented guiding all employees to place a high value on work quality and product
development needs and evolving quality management paradigms. A sound cross-departmental process organization (including
quality. Concurrently management at all levels is required to demonstrate proactive accountability and attribute problems internally when
IPMT PDT and the customer quality Iron Triangle) has been established to break down departmental barriers and achieve efficient
handling issues thereby improving the proactiveness timeliness and effectiveness of problem-solving.collaboration. The heads of each business unit serve as process owners bearing overall responsibility for the quality outcomes of end-
to-end processes such as "Strategy to Execution" and "Demand to Satisfaction" thereby achieving shared quality responsibility and co-
creation of quality value.Four absolutes of quality Quality red line management
Quality is conformance to requirements The standard of performance is zero
Strictly prohibit shirking responsibility for or delaying Strictly prohibit the implementation of non-
not "goodness" defects not "that's close enough" the resolution of quality issues standard changes
Strictly prohibit falsification of quality Strictly prohibit violations of quality
documents/data operation processes
Strictly prohibit working in violation of or without Strictly prohibit non-compliant procurement and
documented procedures mass launch of unverified products
Jack's quality
red line
Strictly prohibit personnel from working without management Strictly prohibit failure to report false reporting or
The system for causing quality is The measurement of quality is the price proper certification concealment of quality incidents
prevention not "appraisal" of nonconformance not indices.Strictly prohibit the use of non-conforming Strictly prohibit the disclosure of trade
materials and instruments/equipment secrets and infringement activities
Strategy
Jack Technology steadfastly implements a "Quality First" strategy internalizing this philosophy into a shared value for all employees to
continuously create value for customers and achieve customer satisfaction and operational excellence.To this end the Company has systematically built an outstanding end-to-end quality management system covering strategy to execution
and from demand to satisfaction. By deeply integrating digitalization and AI technology we ensure exceptional quality from the source
achieve the stringent goal of "Zero-Defect Products" and provide optimal intelligent total solutions for global apparel manufacturers. This
ultimately solidifies Jack Technology's leading position as a "byword for the industry" realizing a leap from technological leadership to
ISO 9001 quality management system certification CCC certification brand leadership.
35 362025 Environmental Social and Governance (ESG) Report
Quality strategy
已已I已已已已已已已已 dentified quality-related opportunities
Opportunity type Opportunity description Response measures
Quality first strategy leading operational excellence
Strategic goals Achieve a quality maturity level of 4.0 (Smart Stage) by 2030 an NPS of 65 by 2030 and a 1.Significantly improving operational efficiency: Digital management has customer satisfaction rate of 98% by 2030 The quality digitalization network
increased product development efficiency by 30% shortened delivery
built upon seven major systems
Quality New zero-defect Policies and Culture of internal Code of conduct Prevention Digitalization enables real-time early warnings cycles by 19% and improved quality-related work efficiency by 30%.leadership quality concept mechanisms attribution for cadres system empowers a of quality risks intelligent analysis 2.Achieving data-driven and intelligent decision-making: Tools like the
revolution in quality of quality issues and rapid closed- "Digital Cockpit" support management in making scientific quality decisions
Quality Business Blockbuster efficiency loop quality improvements greatly strategy Our strategy Product strategy SKU strategy and strategic adjustments.strategy
roadmap strategy enhancing the precision and 3. Leveraging quality inspection robots for intelligent inspection to enhance
efficiency of quality control.R&D delivery quality and empower the upgrade of the apparel industry
Integrated product Market to lead Lead to cash (LTC) Issue to resolution
12 major development (IPD) (MTL) Channel management process (ITR)
quality
Strategic management process Management customer relationship operation management (CRM) Integrated supply chain (ISC) In a highly competitive market
Management human Management transformation Management foundation stable and reliable high quality is
resources Management finance and process IT support key to shaping brand differentiation 1.Increasing market share and pricing power: Our reputation as a "quality
Building brand trust and winning long-term customer benchmark" gives us priority in bidding and collaborations and supports 6 end-to-
end quality Requirement Technical Development Component quality quality qual quality Process quality Service quality and premium with trust. By establishing the "Jack" more competitive pricing.processes high quality brand as a byword for quality 2.Reducing quality losses and after-sales costs: Proactive controls lower
in the industry we can achieve defect rates and recall risks directly saving on quality-related costs.
4 precisions Precision marketing Precision R&D Precision delivery Precision service greater customer loyalty and brand
of digital Digital marketing platform Digital product platform Digital supply chain Digital service platform premium.intelligence (CRM/PRM) (PLM/IPD) platform (MOM/SRM) (ITR)
AI Platform Knowledge base Large model Intelligent agent Information Industrial internet development platform security of things By screening and cultivating high-
quality suppliers through digital 1.Ensuring production stability and on-time delivery: A high-quality supply
Building competitive systems and strict standards we chain is the cornerstone for achieving a 99.9% order fulfillment rate and
Identified quality-related risks barriers through a build a stable efficient and high- shortening delivery lead times.collaborative high- quality supply chain ecosystem
quality supply chain creating a competitive advantage 2.Driving the goal of zero-defect products: Ensuring material quality from
Risk type Risk description Response measures that is difficult for competitors to the source lays the foundation for the high reliability of final products.replicate quickly
Non-conforming products 1.Establish the core policy of "Zero-Defect" and implement the Quality Red Line
due to design material or Management Regulations and the "One-Vote Veto for Quality and Safety." A deeply ingrained quality culture of
Major product quality manufacturing defects may 2.Establish a full life-cycle quality management system covering R&D production "Customer First Proactive Service" 1.Enhancing customer satisfaction and NPS: High-quality products and
and safety incident lead to customer complaints and service and achieve end-to-end quality data traceability and closed-loop (as seen in the Huaiji rescue
risks severely damaging brand management through systems such as PLM MES and QMS. Attracting and services directly boost customer satisfaction (to 9.18 by 2025) leading to case) and outstanding customer
reputation and market 3.Directly link quality and safety performance to the performance evaluations of retaining customers more repeat purchases and referrals.position. senior executives. problem-solving capabilities (a with an exceptional
97.99% resolution rate for quality 2.Creating a talent magnet: An exceptional quality culture and
quality culture
issues) can significantly enhance management system help attract and retain outstanding talent and
Unstable or substandard 1.Independently develop and apply the SRM (Supplier Relationship Management) customer loyalty and word-of- partners who have high standards for quality.quality of parts and materials system for the systematic management and assessment of incoming material mouth promotion.Supply chain quality from suppliers will cause quality from suppliers.fluctuation and delays in the Company's
disruption risks product delivery affecting 2.Integrate the quality control system from supplier incoming materials to
overall operational efficiency customer delivery through the QMS system enabling automatic data collection
and customer satisfaction. and early warning for anomalies.If quality data is fragmented 1.Develop a digital system for "full-process quality management from
across different stages and blockbuster development to user feedback" to achieve data integration and
Quality data not integrated or if control online processes across the entire chain.fragmentation and processes are not properly
control failure risks executed it will lead to de- 2.Establish the Quality Process IT Department to coordinate the quality
lays in problem identification system process IT and quality management ensuring the effective operation
and difficulties in root cause
analysis. of the system.
3738
Demand Customers
Demand Customers2025 Environmental Social and Governance (ESG) Report
Impact risk and opportunity management 2025 tiered and categorized quality empowerment training: Systematically forging
practical quality capabilities for all employees
The Company proactively manages product quality risks by establishing a "Zero-Defect" quality culture and a systematic management In 2025 the Company planned and implemented
framework. We leverage digital systems covering the entire process (such as BI PLM MES QMS/SRM) to achieve real-time quality a special quality empowerment training program
data monitoring risk early warning and closed-loop improvements. Through strict quality red lines performance assessments and that was tiered categorized and covered all
accountability mechanisms we ensure the effectiveness of our controls. In addition we transform continuous improvements in product employees. Through systematic layered instruction
quality into a competitive market advantage seizing market opportunities for high reliability and superior experience with higher case reviews and hands-on exercises this
customer satisfaction brand reputation and operational efficiency thereby supporting the Company's high-quality development. training helped employees at all levels to deeply
understand quality standards master core skills
and firmly establish the quality line of defense. By
2025 Quality Month: Driving full-process quality improvement with a "zero defect" core comprehensively strengthening the team's quality
literacy in terms of both awareness and capability
this initiative provides solid talent and skill support to
The Company designates September as drive continuous product quality upgrades and the Product quality training
"Quality Month" each year. In 2025 under Company's high-quality development.the theme "Embrace Zero-Defect Get
It Right the First Time" special activities
will be launched simultaneously across
multiple factory sites. This year's Quality
Month focused on implementing the Full-process quality management from blockbuster development to user feedback
zero-defect management transformation.Through a series of initiatives—including The Company has built a customer-centric digital intelligent management platform that covers all business processes enabling intelligent
company-wide zero-defect awareness analysis early warning control prediction and decision-making. This has led to a significant improvement in core efficiency: the R&D cycle has
training strengthening process controls been shortened by 30% quality-related work efficiency has increased by 30% order delivery time has been reduced by 19% and customer
tackling typical quality issues and service time has been shortened by 40% strongly supporting business growth and efficient organizational operations.organizing ski l ls competit ions—we
systematically enhanced the quality
awareness of all employees solidified
the quality foundation across R&D From strategy to execution
production and management and
continuously drove dual improvements Closed-loop digitalization of the full DSTE process: We have built 01
in product quality and management 2025 Quality Month kick-off meeting a dynamic strategic operations management platform with BI at its
effectiveness. core. Relying on the DSTE process and the "Five Perspectives"
methodology we integrate competitive and benchmarking
intelligence data into the BI platform to support strategic planning
and goal setting. Through system linkage quality indicators are 02 From demand to satisfaction
2025 Quality Case Exposure Exhibition: Fostering improvement cascaded down to various business units. We dynamically monitor
through transparency reinforcing the quality baseline data from systems like CRM PLM MES and QMS drilling down Visualized Control of Full-Process IPD Data: We have built an
to fundamental data such as process defect rates. This achieves end-to-end quality data platform centered on the IPD process
full-process visualization of intelligence gathering analysis strategy meticulously managing the entire lifecycle from demand to
In 2025 the Company innovatively planned and launched the "Quality Case Exposure Exhibition." Guided by the principles of formulation decomposition monitoring and early warning ensuring completion through the Dassault PLM system. By connecting
"Confronting Problems Preventing Errors and Improving and Embracing Zero-Defect" the exhibition used a combination of text that business execution is highly aligned with strategy. 03 the PLM and BI systems we translate product strategic goals
and images to showcase cases trace problem origins clarify responsibilities and share lessons learned. This initiative prompted From marketing to service and assign them to responsible individuals monitoring process
and result indicators in real time. This ensures full transparency
the entire company to reflect deeply on the root causes of quality issues strengthening every employee's awareness of the
End-to-End full-Process data collaboration: We have digitally connected the from the initial customer demand to final satisfaction supporting
quality baseline and their sense of responsibility. entire MTL LTC ISC ITR and MCR processes integrating data from CRM the execution of our strategy.DMS SRM MES and after-sales service platforms to create an integrated Global visualization of operational quality
closed-loop system for customer insight order transmission supply chain 04
control process traceability and after-sales response. This comprehensively Integrated visible and controllable financial and business
enhances lead conversion fulfillment efficiency and problem-solving operations: We have connected IFS financial processes with
speed achieving a dual improvement in ultimate customer experience and SAP HANA at the core and deeply integrated the BI system
operational efficiency. to achieve integrated management of quality financial and
Talent quality 05 business data. By linking quality costs and benefits and integrating accounts receivable/payable expense accounting
Full-lifecycle management of digital talent: We have constructed a dual- and risk control we provide real-time operational data to
engine talent system driven by "digital empowerment + data-driven insights." support tiered decision-making and performance display
Leveraging our online academy we have created a company-wide training thereby making business value quantifiable and globally
matrix and reinforced practical skills and quality culture through our lean visible.dojo. By linking our performance management system recruitment platform
and assessment system we have formed a closed-loop cycle of cultivation
Quality Case Exposure Exhibition evaluation development and recruitment optimizing our talent structure and
strengthening the foundation for organizational and strategic execution.
39 402025 Environmental Social and Governance (ESG) Report
Product recalls Complaint management measures
Global sales and service personnel closely monitor product usage and continuously track product and service quality through the
various methods mentioned above. They promptly identify and address any issues customers encounter during use and report customer Jack Technology has established a systematic quality complaint management mechanism aimed at effectively protecting customer rights
requests and problems to the relevant company departments for rectification ensuring product quality and customer satisfaction. and enhancing the Company's reputation. Through the Quality Closed-Loop Management Process the Company mandates a rapid
When a product defect level triggers the "recall mechanism" the Company's Quality Committee immediately issues a recall for the response to external customer complaints within 4 hours and leverages IT-based systems and a digital dashboard for intelligent analysis
relevant products and the Product Department takes the lead in swiftly handling the recall of products from the market. and tracking of complaints. This process strictly follows six steps including root cause analysis implementation of corrective measures
verification of effectiveness standardization peer-to-peer training and closed-loop confirmation to ensure that issues are fundamentally
In 2025 the Company comprehensively upgraded the Jack's Product Recall System further refined the recall process and operational resolved. For major quality issues the Company implements a hierarchical management system and has established a direct reporting
specifications and directly linked the product quality results to the executive compensation assessment to strengthen the quality mechanism to senior management to accelerate the resolution of significant customer complaints.responsibility of the entire organization. Through the comprehensive initiatives of digital empowerment process optimization and
management accountability the Company effectively safeguarded the rights and interests of consumers and significantly enhanced
the level of quality governance and brand credibility which set up references for the standardization and high efficiency of the industry's
quality management.Key performance Indicators and targets
During the reporting period the Number of major quality Product recall rate Guided by the core philosophy of "adhering to end-to-end quality management to build Jack's high-quality brand" the Company has
Company's product qualification rate incidents in the year formulated a 3-5 year SP quality strategic plan. This plan sets Net Promoter Score (NPS) and customer satisfaction as core quality
99.5% 0 0.037% objectives which are then cascaded down and implemented across all organizational levels and positions.
Quality improvement Performance Actual performance
indicators 2023 2024 2025
The Company has built an end-to-end quality management system covering six dimensions: demand quality technical quality
development quality process quality parts/electronic control quality and service quality to build up a solid quality line of defense layer Customer 8.52 8.85 9.18
by layer and to promote the evolution of quality management from the basic to the advanced level and ultimately to realize the quality satisfaction
culture of "Doing Things Right the First Time" so as to escort the high-quality development of the business. With the core support
of "tools methods digitalization and a zero-defect culture" the Company has integrated the whole-process quality control into the
business and has helped its products go on sale and achieve commercial success.Quality management initiatives
1 2 3 Key performance
Requirement quality Technical quality Development quality
Forming a demand management system Strengthening the technical system and Conducting continuous refinements and
with concurrent processes organization consolidating the management foundation building a product development system
and capabilities for asynchronous development that is suitable for the business
Establish interlocking mechanisms for Build medium- and long-term technology Improve and operate the testing systems
tracking requirements and technologies and planning Build medium- and long-term product During the reporting period the Delivery cycle shortened
products (5 Advisory Departments) Realize integrated technology and planning Company's product development
Conduct joint innovation with key accounts product management efficiency improvedComprehensively implement the QFD 19%
Apply demand tools to gain insight into Manage the platform and the CBB in a and DFMEA
pain points united manner 30%
45
Process quality Component/electronic
6
control quality Service quality
Building a process quality defense Building a world-class procurement and Building a global intelligent service
system with automation intelligence and operations system to meet the needs of ecosystem Quality issue resolution rate First-pass yield for parts
digitalization internal and external customers
Change management rules and Conduct component reliability Continuously optimize and upgrade the 97.99% 96.81%with core indicators all
execute them management and improve testing systems ITR process
exceeding the industry average
Create a quality competition mechanism Conduct three-tier supplier management Construct a digital closed-loop map
Eliminate quality issues Improve core component quality Empower the frontline to call for support
41 422025 Environmental Social and Governance (ESG) Report
Digitalization strategy
The Company has established a comprehensive information
security and customer privacy protection system strictly
adhering to national laws and regulations such as the
Cybersecurity Law of the People's Republic of China and Key honors
the Data Security Law of the People's Republic of China. We
implement systematic management based on internal policies
including the Data Security Management Policy and Information
System Security Management Regulations. By strengthening
our information security management system enhancing
supervision and inspection of personnel equipment and
systems and building a security technology architecture based 2025 all-staff information security training to reinforce compliance and prevention awareness
on the principles of "stratification gradation and zoning" we
ensure robust protection. The Company has obtained relevant In 2025 the Company organized a specialized information security training program covering all employees. The training content
security certifications including ISO/IEC 20000 and ISO/IEC ISO/IEC 27001 information security management system was systematic and comprehensive encompassing an interpretation of the Cybersecurity Law of the People's Republic of China
27001 and continuously conducts employee training to raise certification ISO/IEC 20000 information technology service dissemination of the Data Security Management Policy information security risk identification and typical security scenarios
security awareness across the organization. These efforts management system certification and prevention techniques all summarized and reinforced through security slogans. To ensure the training's effectiveness the
systematically safeguard corporate and customer information Company conducted an all-staff assessment on the learned content. The training achieved a 100% sign-in rate and a 100% pass
security supporting stable business operations. rate on the assessment effectively enhancing the compliance awareness and security prevention capabilities of all employees.Digitalization strategy
The company has formulated four major strategic pillars: strengthening the IoT foundation building an industry-specific PaaS platform Data security management
enhancing AI capabilities and exploring physical AI digital twins thereby solidifying the digital and intelligent foundation of smart
manufacturing layer by layer. It prioritizes reinforcing the underlying support for IoT device interconnection and building an industry-
specific PaaS platform to implement intelligent O&M and factory-assisted decision-making scenarios. The company continuously To standardize data security operations enhance protection capabilities and support informatization development the Company has
upgrades its full-stack AI capabilities and builds a mature AI Agent ecosystem to achieve business-oriented and intelligent scenario formulated the Data Security Management Policy. This system covers full-lifecycle data management clarifying the organizational
implementation. The ultimate goal is to establish a physical AI digital twin system integrating APS PLM and MES systems to create structure management content backup processes and recovery mechanisms providing a systematic regulatory basis and operational
an industrial metaverse where the virtual and physical worlds interact. Concurrently Jack integrates three core capabilities—process guidance for data security management and informatization development.digitalization innovative knowledge application and AI. Leveraging the "Starlink Cloud Alliance Solution" Jack empowers the upstream
and downstream of the industrial chain creating a flexible one-stop delivery platform for the garment industry. This initiative supports
rural revitalization and shared industrial prosperity building a comprehensive ecological competitive advantage. Organizational structure of data security management
Process and digitalization strategy Quality process & IT committee
战略目标：以客Str户ate为gic 中goa心ls: 、To b支e c撑ust业ome务r-c增ent长ric 、sup提por升t bu组sin织ess效 gro率wth， 赋能全产业链enhance organizational efficiency and empower the entire industry chain Head of process & IT
11. P以ro流ces程s-O为rie脉nte络d Framework 22 .I TIT固-So化lid流ifie程d Processes 33. I新nno技va术tive创 A新ppl应ica用tion of
Continuously optimize the 12 company- Solidify the three major business New Technologies
l持ev续el 优L1化 p公roc司es级seLs1的 a1d2h支eri流ng程 to， a坚 持以客 以p数roc字es化se固s 化ofI IPD、 LTC、 aInTdR I T3R大 业务主 利用大数据、AI技术，迭代升级PaaS平台customer-centric approach and ensuring along with other processes through Utilize big data and AI technologies to 户为中心，坚持业务活动模型化、模板化、 流d及igi其tal他iza流tio程n， fo围cu绕si客ng户 on端 e到nd端-t的o-e运n作d ， it及应用系统，解锁新能力business activities are modeled templated erate and upgrade the PaaS platforma数nd字 d化ig，itiz实ed现 t“o "把fo能ste力r 建ca在pa组bi织litie上s” within 支c撑lie业nt 务op打er胜at仗ions to support business and application systems unlocking newthe organization." success. capabilities.
4. Empowering the Entire Industry Chain 5. Support
4赋能全产业链5支撑全球
ing数 Gl据obal Data 6. IT Iron Triangle Support
Continuously develop digital systems such Build international capabilities for data C6o nItTin铁uou三sly 角bui保lds 障the Process Data security Data security Data security Data security officer Data security
a持s 续DM建S设 SDuMSp、pli供er 应Cl商ou云d MMEESS、 售an后d 宝Aft等er数- 构tr建an国sm际is化si的on数 s据to传ra输ge、 a存nd储 p、ro处ce理ss能in力g ， C持O续E建 设IT流BP程 CaOnEd、 IITT BCP、OIET ICroOEn铁 T三ria角n团gl队e ，确Sales Service Treasure to consistently while continuously strengthening data teams to ensure the effective officer of the officer of officer of the 保战略与业务的有效落地 of the International officers of
e字m化po系w统er ，th坚e d持ig为ita产liz业at上ion下 o游f t数he字 u化ps赋tre能am 持s续ec建uri设ty 数pr据ote安ct全io防n t护o e，n确su保re 数da据ta安 全、 implementation of strategies andand downstream industry chain. 合s规ecurity and compliance. support business growth. Marketing the Product Supply Chain Business other functional
Department Department Department Department departments
43 442025 Environmental Social and Governance (ESG) Report
Data security management content Lean MTM method
Efficiency Improvement: By applying the MTM method and ECRS software to analyze operational movements we identified and
Implement graded control over production improved inefficient actions. This increased production line efficiency from 0.75 to 0.92 a 23% improvement for the year.sales R&D and functional data based on
their characteristics and importance. ISO 27001 ISO 20000 and MLPS 2.0
Security certifications. 已已 * Current State Survey— 已已 * Current State Survey— 已已 * Current State Survey— 已已 * Current State Analysis—
Classification Classification and grading coverage and UPPH Value 0.75 Understanding the Current Situation Production Anomalies Comparison of Current Data
and grading of 95% (256 types Levels A-E). Compliance Data Security Management Policy Data
100% data leakage prevention and Classification and Grading Standards.
control for confidential data and
personnel (2600).已已 * Current State Survey— 已已 * Root Cause Analysis— 已 已* Countermeasure Implementation— 已已 * Results Output—Process
ECRS Software Analysis Fishbone Diagram Application of MTM Method Standardization and Promotion
Establish network zones for R&D production
functional departments headquarters and Establish a Digitalization Committee to
branches partner companies and customer- coordinate and manage the Company's
facing operations. Implement inter-zone isolation
and precise intra-zone protection to ensure data security.Awareness
Zone and data assets are not maliciously damaged or and
domain division accessed. Conduct annual information security responsibility
awareness training. All new employees Lean Automation for Multiplied Efficiency: The parts factory improved the eccentric wheel processing procedure increasing per capita
Red yellow and green network tiers: must participate in information security output value by 5.16 times and saving RMB 576000 in annual labor costs. The use of robotic arms to handle materials combined with
5 red zones 5 yellow zones and 4 training and pass an examination. safety guards eliminates manual loading and unloading steps effectively reducing safety risks.
green zones.Before Improvement After Improvement
Number of
10 people Employees 2 people
Number of
Taizhou Data Center and a data disaster Equipment Units
recovery center ensure data can be 25 units 20 units
restored in case of loss. Conduct quarterly data chain audits Per Capita
Disaster via the data management and control 390 pieces/ Productivityrecovery and 100% disaster recovery for core systems. 2016 pieces/Risk posture platform to person person
restorability
Recovery Time Objective (RTO) of 10 proactively identify data leakage risks.Washing
minutes. Recovery Point Objective (RPO) of Trolley
Cylindrical Cylindrical Trolley Trolley Cylindrical Cylindrical Trolley Trolley Cylindrical Cylindrical Trolley Trolley Cylindrical Cylindrical Honing Measurement Cylindrical Cylindrical Trolley
Grinding Grinding Grinding Grinding Grinding Grinding Grinding Grinding Station Grinding Grinding Machine
30 seconds.
Cylindrical Cylindrical Cylindrical Cylindrical Cylindrical Cylindrical Cylindrical Cylindrical Washing Cylindrical Cylindrical Cylindrical Cylindrical
Grinding Grinding Grinding Grinding Grinding Grinding Grinding Grinding Machine Grinding Grinding Grinding Grinding
Automated Automated Automated Automated Automated Automated Automated Automated Automated Automated
Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding
Automated Automated Automated Automated Automated Automated Automated Automated Automated Automated
Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding Cylindrical Grinding
SIM Anomaly Mechanism
Establish a SIM mechanism for production anomalies
develop underlying logic for anomaly detection and
build a digital anomaly management platform.Data security network diagram
4546
Drilling
Machine
Washing
Machine
Cylindrical
Grinding
Washing
Machine
Cylindrical
Grinding
Washing
Machine
Efficiency Improvement through MTM Method
Implementation
Cylindrical
Grinding2025 Environmental Social and Governance (ESG) Report
Value Stream Efficiency Data backup
By using Value Stream Mapping (VSM) to map the entire process information flow and operational flow we conducted a comprehensive
and systematic analysis of manufacturing logistics and inventory. As a result from 2022 the per capita output value of worker at the
production line employees increased from RMB 540000 to RMB 720000 the manufacturing cycle was shortened from 12 days to 7.2 Division of labor Backup content Backup method
days and the inventory turnover rate improved from 2.29 to 4.9.The IT Department is responsible for Comprehensive coverage of application Regular full incremental and
backing up checking and monitoring system data key network system data differential backups.Current现 St状at图e M绘ap制 Drawing 爆炸点B分ra析ins（tor头m脑ing风暴） the application system data and and operating environments.equipment configuration information. Backups are scheduled during low
Includes operating systems application peak business periods (e.g. 0:00
The archive is responsible for the software system data application data a.m.-5:00 a.m.).preservation of offline backup media. and configuration information.椒江
Backup storage Offline backup management Backup check工
厂 At least two copies of critical system Establish backup file archives and The system administrator checks the Im落ple地m成en效tation data are retained: one in the data an archival library with detailed backups on a daily basis.价 Results Fu未tu来re 图Sta实te施 Map center and one in the disaster records of backup information.Implementation recovery center. If the backup fails find out why and
KPII 改Be进for前e 改A进fter后 back up manually.值 Improvement Improvement At least one copy is maintained for
流 Man制uf造act周uri期ng（ cyc天le ）(days) 12 7.2
other systems.存In货ve周nto转ry率 turnover rate (time（s)次） 2.29 4.9
线L平ine衡 balancing rat率e (%（) %） 65% 89% System change backup Backup media custody Data security
人均Pe产r ca值pita output value (RM（B 1万00元00）) 54 72
Perform snapshots or backups The storage location for offline Unauthorized disclosure loan or
before software installation system backup media must be equipped transfer of backup data is prohibited.upgrades or configuration changes. with fireproof heatproof moisture-
proof dustproof anti-magnetic and
Ensure rapid recovery in case anti-theft facilities.of failure.Key performance
During the reporting period the Company ensured the stability and security of its information systems by
adopting a series of measures such as installing additional information security anti-intrusion detection
systems carrying out quarterly network security inspections commissioning external organizations to carry
out ad-hoc inspections and optimization of information systems annual IT audits updating and upgrading
virus databases and rule libraries in response to new viruses and loopholes as well as adopting a series of
measures such as data encryption data hierarchical control and so forth no incidents of penalties due to
violations of information security management regulations occurred throughout the year and no incidents of
customer privacy infringement occurred.Information Security & Privacy Protection Total Training Duration Total Capital Investment
Awareness Training
3976 976hours RMB500000 person-times
4748
Jiaojiang Factory Value Stream2025 Environmental Social and Governance (ESG) Report
Customer service excellence Establishing the Expedited Rabbit Club
The Company has innovated its after-sales service model by bringing together freelance technicians to establish the Expedited
The Company puts customers first fully implementing the core philosophy of "Smart Service Full-Journey Companionship" and Rabbit Club. Through an advanced management platform it has built an efficient technician service network where customer
deepening its customer service process system. It has built a localized service system with a global network of over 8200 service outlets repair requests are responded to within 10 minutes technicians arrive on-site within 1 hour and issues are resolved within 30
staffed by a professional team of more than 20000 members to provide customers with one-stop quick pre-sales in-sales and after- minutes minimizing equipment downtime. This truly delivers on the "Three Fast" service promise: quick response quick arrival
sales services. Concurrently the Company has established a digital service delivery system deploying a work order management and quick resolution. Additionally the Company organizes technician skill competitions to enhance their technical capabilities
system smart customer service and a three-tier remote expert system. This creates a dual service guarantee combining both "local comprehensively.and cloud-based" support making the entire service process visible and intelligent. The Company handles over 10000 remote service
cases annually service turnaround time reduced by 40%. Through an efficient response mechanism a professional service team a
comprehensive service network extensive service offerings continuous service improvement and strong brand trust the Company
delivers a comprehensive high-quality service experience effectively enhancing customer satisfaction and brand competitiveness.ITR management system
C o n t i n u o u s i m p r o v e m e n t o f I T R
Management responsibilities
VOC Expedited Rabbit Club
Service "Three Fast"
execution
Resource Team and Change and Measurement analysis
management organizational process and improvementmanagement management
Human Capability Measurement analysis Promoting the transformation of the "Ten Thousand Inspection Tours Proactive Service"
resources enhancement and improvement Customer survey model to deepen customer connections
IT and Knowledge Customer Satisfaction
tools management voice surveys
improvement
management
Problem-solving solutions While the sewing machine industry generally handles service requests passively Jack has taken the initiative to be proactive
Acceptance Resolution Close pioneering a fundamental shift from a "reactive" to a "proactive" service model. In 2025 we will conduct 10000 service days
Problem origin & Solution & progress Result verification & and inspection tours proactively maintaining 200000 units of equipment continuously staying close to our customers and
responsibility tracking follow-up closed-loop
assignment …… …… strengthening emotional connections through daily service interactions.……
Service request Problem handling Internal improvement Quick service
Marketing Product Supply chain Technical Spare parts
services support
AI customer Bad news straight to the VOC analysis and PONC Zero-defect service system management management analysis management
Customer service strategy
Building a global intelligent service ecosystem
and achieving management excellence
Target Improve NPS score annually make a bold "Three Fast" service promise + less than 5 hours of annual downtime drive continuous customer repurchases and achieve a win-win situation for the Company and its customers
Measure ITR process 1.0-4.0 Global talent development Building localized service Intelligent remote AI service
Launching the "Frontline Calling for Support" global special initiative to focus on resolving
Voice of the customer:Continuously Standardized certification system: Key account service management: Predictive service: Robotics + customer pain points and win trust
building and expanding customer Optimizing the instructor system Pre-sales solution risk assessment in- Knowledge Base (covering the entire
feedback channels platforms and entry and curriculum library (for the entire sales customer participation in milestone industry) 7x24 service; remote
points to amplify the customer's voice industry) to cultivate a global team of confirmation and dedicated after-sales equipment commissioning and In 2025 to more accurately listen to the voices of frontline customers the Company launched the "Frontline Calling for Support
Bad news straight to the management: instructors personnel for regular monthly follow-ups upgrades + rapid fault resolution Conference" special initiative. We solicited issues from customers worldwide and concentrated our efforts to resolve them using
Continuously iterating the competitive Internal personnel certification: Global network layout: Establishing a with AI resolving 70% of issues a rapid response mechanism to address customer needs while simultaneously driving continuous internal quality improvements.mechanism standards and closed- Comprehensive certification for all global network of maintenance service Three-tier remote system: Building
Key loop processes along with regular Calls frontline personnel with a 100% outlets and spare parts warehouses an industry-leading three-tier expert During this period we efficiently collaborated to resolve over 150 issues for key accounts such as Sunfreda and Vietnam TGC
initiatives from the Frontline conferences certification rate for on-the-job staff with first-tier distributors in China and system integrated with intelligent
and over 80% holding intermediate or coverage in 15 key overseas countries systems; developing digital customer
addressing pain points across the entire chain of our hanger system integrated solutions. The customers highly recognized the
Process development: Deeply service bots and voice bots to
integrating and operating the three advanced certificates Club development: Replicating and effectiveness of our solutions laying a solid foundation for continuous repurchases and long-term cooperation.achieve a one-time resolution rate of
major processes of IPD LTC and ITR Global certification: Establishing promoting the club model globally. over 80% for remote support
aligning ITR issue resolution with IPD a global service capability map to Continuously gathering over 50000
requirements definition provide targeted tiered training for technicians worldwide to implement the
global distributors and technicians "Three Fast" service reputation
Tools and SR service review Negative feedback Recall Closed-loop issue New product project Application of
methods mechanism mechanism mechanism resolution mechanism mechanism SERVQUAL model Gallup methodology
Service Integrated platform (Company + Global knowledge base & multilingual Multi-channel Intelligent customer service Digital
platform Distributor + Technician + End user) chatbot (online + voice) access system + remote service service map Frontline calls demand conference
5152
Customer satisfaction
Customer requirements2025 Environmental Social and Governance (ESG) Report
Key performance Service Response Channels
The Company has received the "National Five-Star After-Sales Service Certification" for 9 consecutive years
and been named a "National Top 10 After-Sales Service Unit" for 5 consecutive terms leading the continuous 7x24-hours Jack service hotline: Online customer service Online customer service 4008876858 and AI agent Xiao Jie: and AI agent Xiao Jie:
upgrading of service in the sewing industry.WeChat service account:
Jack Fast Service
Customer rights protection International service email:
sales@chinajack.com
In terms of protecting customer rights and interests the Company continues to enhance its full-process rights protection mechanism
strictly implementing the product "Three Guarantees Policy." We have also further implemented the "Bad News Straight to the
Management" issue-handling mechanism. For urgent situations such as major quality issues and batch failures reported by customers
we have established a flat decision-making channel. These issues can be directly synchronized with the Company's senior management
Emergency rescue mission in Huaiji after flooding to
team without layer-by-layer reporting. A special task force led by senior and middle management is formed to develop a targeted solution ensure resumption of customer production
within 1 day and achieve closed-loop resolution within 7 days ensuring that customer issues are resolved efficiently and quickly to
minimize customer losses. In June 2025 Huaiji County Zhaoqing City Guangdong Province was
Hierarchical management of quality issues hit by severe floods due to heavy rainfall devastating the local garment
industry. In factories flooded with sewage soaked sewing equipment was
Directly escalated to EMT senior covered in rust. Business owners were distraught facing mountains of
management for resolution backlogged orders. Production lines in what were once bustling garment
Critical
issues enterprises were forced to a halt. In the wake of the disaster the Jack
Directly escalated to service team and distributor teams worked side by side venturing deep
LPDT for resolution
Major issues into the affected areas to carry out equipment inspections and repairs.Their efforts minimized customer losses and provided a lifeline to the
Directly escalated to damaged equipment in the garment factories profoundly embodying the
LPDT for resolution Proactively serving customers affected
General issues service philosophy of "Customer First Proactive Service." by the disaster in Huaiji
Process framework for bad news straight to the management Customer satisfaction management
The Company places great importance on customer feedback and experience using customer satisfaction surveys as a key basis for
Issue submission Solutions Preliminary plan review Request closure
(Service Supervisor) (LPDT) (Quality Director) (Service Supervisor) service optimization. It has established a regular multi-dimensional customer satisfaction survey mechanism. In 2025 the Company
conducted multiple rounds of NPS and comprehensive customer satisfaction surveys in key global markets including China India
Directly escalated Bangladesh and Vietnam. The surveys covered various aspects such as product quality service response speed problem resolution
Cumulative number Major issues to LPDT for Review root efficiency and the professionalism of technical support. Through these precise surveys the Company delved deep into customer needs resolution
of complaints cause analysis Customer satisfaction and service pain points providing data-driven support for the optimization of its service system.Directly escalated follow-up
Critical issues to EMT members
Batch issues for resolution Verify corrective
measures Initial foundation stage Optimization and improvement Precision and deepening
Amount of loss Exceeds (before 2019) stage (2019–2022)
stage (2023–present)
30 days Review issue for Dig deep to the closed-loop resolution
fundamental principles Distributors and customers Strategic customers
Survey group Distributors and customers Distributors and customers (global)Escalate to CEO/Mr. Jack Mainly domestic SMEs All levels: Purchasers/operators All levels: Purchasers/
operators
Key performance Third-party NPS census
Survey method Call center follow-up calls Online meetingsBlockbuster product NPS touchpoint survey
Paper-based follow-up On-site inspections Customer technical
During the reporting period the Customer feedback First-time resolution rate exchange meetings/seminars
Company served customers response rate
Customer Net Promoter Score (NPS)
72172 99.95% 99.58% Survey Service satisfaction Competitor satisfaction times dimensions Product quality/needs Four dimensions: Brand service
feedback product and price
Activity and policy satisfaction
53 542025 Environmental Social and Governance (ESG) Report
Conducting NPS survey in India
In 2025 an NPS study for lockstitch and overlock sewing machines Supply chain management
was conducted in the Indian market through a third-party agency Ipsos.Through market visits and surveys we analyzed operator experiences
with lockstitch and overlock machines identified their pain points and Governance
assessed these issues through quantitative research. This study delved
into the performance of Four levels indicators and explored innovation The Company has established a comprehensive supply chain management system centered on the "Supplier Management
opportunities for both two products providing data support and a decision- Regulations" covering the entire process of admission evaluation incentives and exit. This system specifies the code of conduct and NPS research report on the lockstitch and
making basis for future product development and marketing strategies. requirements for suppliers in areas such as compliant operations environmental responsibility and social responsibility. Regarding overlock sewing machine market in India
compliant operations suppliers are required to strictly adhere to relevant laws and regulations including the Anti-Monopoly Law and
the Anti-Unfair Competition Law and to prevent unfair practices such as bid-rigging and commercial bribery. The Company has also
Key performance formulated the Anti-Fraud and Whistleblowing System for suppliers to ensure transparency and fairness in cooperation. In terms
of environmental responsibility the Company has developed a Supplier System Inspection Checklist that outlines environmental
During the reporting period the Company Surveying over management requirements. Additionally a Procurement Management Department has been established to promote ESG responsibility
conducted customer satisfaction surveys among suppliers and implement
4 green procurement policies. Priority times 12000 questionnaires is given to suppl iers who have
obtained environmental management
Questionnaire response rate: Customer satisfaction survey results: system certification and practice
95.60% 91.80% energy conservation and emission reduction requiring them to optimize
product ion processes reduce
pollutant emissions and promote
Customer complaint management resource recycling. Supplier environmental management
system certification Anti-corruption pledge A letter to our partners
To ensure timely effective and standardized closed-loop handling of customer feedback and complaints the Company has established
a customer complaint handling workflow and a rapid service response mechanism. It has also developed a smart AI + global shared
knowledge base and a three-tier remote video resolution process enabling online video guidance to help customers quickly resolve
issues thereby enhancing customer satisfaction and providing 7x24-hours service.The company has established a customer complaint handling workflow and a quick service response mechanism. Jack EMT members
regularly take calls on the 400 hotline to listen to end users’ voices develop targeted strategies and methods to improve customer
satisfaction and continuously promote management transformation and improvement.Customer Service Customer Service
Customer Department Department Responsible Department
Customer Initiates Customer Service Determine Departments
Complaint Receives Complaint Complaint Type Analyze Cause of Problem
Record Complaint Information
(Customer Information No
Complaint Details) Develop Solution
Dissatisfied
Execute Solution
Service Satisfaction Provide Feedback Yeson Resolution to Improvement Confirmation Customer Verification
Satisfied End Complaint Follow-up to Confirm Record Follow-up
Handling Process Customer Experience Results and Summarize
and Archive Data Lessons Learned
Customer complaint handling process Senior executives take rotating shifts at the hotline
Historical satisfaction follow-up data Headquarter Hotline Center Intelligent Data Dashboard
55 562025 Environmental Social and Governance (ESG) Report
Supplier management
Supplier admission review process
In terms of supplier management development the Company has developed a digital supplier management platform the SRM Qualifications system certifications product certifications
system to achieve full lifecycle online management of suppliers. This system covers the entire process from supplier registration data Certification preparation
submission qualification review inspection and evaluation and partnership admission to order collaboration return handling and quality Certifications
inspection feedback. It allows potential suppliers to register accounts online and upload compliance documents such as the three-in- 01 02 03 04 05 06 07
one business license stakeholder notification letters and anti-fraud agreements. The Company's responsible personnel complete the Receive and refine
accreditation
initial review and screening of materials online. The system also automatically generates unique supplier codes and multi-role accounts requirements Authentication
Issuance and
collection of supplier Meeting with Supplier qualification Signing of the
Supplier
to establish an policy approval questionnaires suppliers matching agreement
matching
results review
enabling real-time information sharing and efficient business collaboration between supply and demand sides significantly enhancing accreditation team
the transparency and operational efficiency of the supplier management process.Publicity and Comprehensive
Release Evaluation Product certification System certification
131211100908
Supplier Relationship Management (SRM) platform
Supplier Comprehensive
announcement Evaluation Small batch trial Sample Supplier system Supplier system
and posting (Admission) certification certification self-inspection
SRM system portal
System portal Supplier management Procurement business Basic datamanagement management Supplier portal
My workbench Supplier admission Order collaboration and profile management Sap basic data My workbench Strategy
Order collaboration
Sample submission VMI material
management management
management As a core strategy the Company is committed to building an "efficient flexible and sustainable" global supply chain ecosystem.To-do tasks Quality collaboration VMI material management We deeply integrate digital tools standardized processes and refined management practices. Through digital upgrades in supplier
Drawing management management Procurement basic data Quality collaboration
Finance collaboration management management optimization of new supplier onboarding processes and full-cycle audits and performance management we continuously
Performance evaluation management Finance collaboration enhance the stability compliance and competitiveness of our supply chain. This provides solid support for the Company's global
My notifications management Procurement report management
management expansion and the achievement of its sustainability goals.Inventory collaboration Plastic basket management
management Quality report Quality basic data
Password retrieval management Material feeding management
Inquiry information Identified risks related to supply chain managementapplication management Plastic crate management Drawing management
Supplier name Contract management
Return collaboration Warehouse basic data Inventory collaboration management management Risk type Risk description Response measures
change management Inquiry information management
System Basic scheduling
management and logs SMS records Interface synchronization
Suppliers may engage in
Contract management Centered on the Supplier Management Regulations we
Notification non-compliant behavior in
Backend Performance evaluation establish clear codes of conduct and require the signing of management management Toolset Process management System management management their operations or a lack of
transparency in the cooperation the Anti-Fraud and Whistleblowing System and an integrity
Supply chain process could impact the stability agreement as a prerequisite for partnership.compliance and of the supply chain and the Establish dedicated whistleblowing channels to monitor for
integrity risks Company's reputation. improper conduct.Supplier onboarding process Fluctuations in supplier product
quality delivery timeliness or Implement regular supplier performance evaluation and audit
service cooperation may affect mechanisms linking the results to order quotas and provide guidance and follow-up for suppliers requiring improvement.The Company continuously optimizes its new supplier onboarding process and has formulated the Supplier Onboarding Process Supplier quality the Company's production and delivery plans and ultimate customer Establish an exit mechanism for suppliers who consistently fail
Description Document to build a full-chain standardized system covering registration review inspection assessment and admission. fluctuation risks satisfaction. to meet standards to optimize the supply chain structure.New suppliers must register through the SRM system and upload complete qualification documents as required by their category. After
an initial review by the category manager they are included in the potential supplier resource pool. When new suppliers are needed If suppliers' practices in ESG requirements are incorporated into supplier admission
the factory procurement director initiates an inspection request forming an "Iron Triangle" review team composed of the Manufacturing environmental safety and and routine management; compliance is clearly stated and certified suppliers are preferred.Quality Department Product Corps and Procurement Management Department. This team conducts self-assessments and on-site social responsibility do not meet
requirements related risks may Dynamically manage supplier ESG qualifications through the inspections using checklists specific to different categories such as machining and electronics with a focus on verifying production Supply chain ESG SRM system and conduct assessments in conjunction with
capacity quality control environmental compliance and social responsibility. After passing the re-review and final review the contract be transferred to the Company management risks affecting the achievement of annual audits.administrator grants formal cooperation authorization ensuring the quality of new supplier admission. For existing suppliers who change sustainability goals. Propose improvement requirements for non-compliant
their name or credit code the change or re-onboarding is completed according to standardized procedures to ensure the stability and suppliers and track their rectification.compliance of supply chain resources.
57 582025 Environmental Social and Governance (ESG) Report
Identified opportunities related to supply chain management Impact risk and opportunity management
Opportunity type Risk description Response measures Focusing on its supply chain sustainability goals the Company systematically manages potential supply chain risks through initiatives
such as supplier audits and performance management ESG compliance advocacy integrity constraints and joint supplier capacity
Through clear systems and building. These efforts fully unlock collaborative opportunities continuously expand the positive impact of supply chain sustainability and
digital tools we establish long- Reduce operational friction and uncertainty: Clear rules and transparent processes minimize misunderstandings and build a supply chain ecosystem that is "risk-controlled opportunity-shared and collaboratively win-win."term cooperative relationships
with suppliers based on ensure smooth cooperation.compliance and integrity laying Enhance supply chain resilience: Trustworthy partnerships Building transparent
and trust-based a foundation of trust for stable
help jointly address market fluctuations and improve the
partnerships collaboration.overall stability of the supply chain.Supplier audits and performance management
Through rigorous screening
continuous evaluation and joint Ensure product quality and delivery reliability: High-quality The Company has established a regular mechanism for supplier audits and performance management with standardized processes
capacity building with suppliers suppliers are the solid foundation for our product quality and for assessment guidance and termination. Audits are conducted both on-site and off-site by a professional review team according to
we select and cultivate high- timely delivery.Enhance overall supply chain competitiveness: A collaborative an annual plan and ad-hoc needs focusing on quality systems environmental compliance and social responsibility. For suppliers with
Building transparent quality partners to form an identified issues we track rectification efforts and conduct follow-up reviews. The performance evaluation system incorporates multiple
and trust-based efficient and flexible supply
and efficient supply chain can respond more quickly to market
network. changes becoming a competitive advantage for the Company dimensions including quality delivery service and new product development. Data is collected in real time through the SRM system partnerships for monthly and annual ratings with the results directly linked to supply quotas and partnership priority. Suppliers who consistently fail to
meet performance or compliance standards are promptly phased out continuously optimizing the supply chain structure and enhancing
By extending the Company's
ESG standards to the supply Ensure product quality and delivery reliability: High-quality overall competitiveness.chain we can drive the entire suppliers are the solid foundation for our product quality and
industry chain to improve timely delivery.its social responsibility and Enhance overall supply chain competitiveness: A collaborative
Building transparent environmental performance and efficient supply chain can respond more quickly to market
and trust-based jointly shaping a responsible changes becoming a competitive advantage for the Company
partnerships industrial ecosystem.
59 602025 Environmental Social and Governance (ESG) Report
Supplier risk management countermeasures Supplier Integrity Agreement
To prevent risks such as commercial bribery and fraud the Company
Incorporate supplier policies and compliance into the QSA Supplier Audit Standards as one of the has established the Anti-Fraud and Whistleblowing System as a
new supplier audit requirements core binding document for supplier partnerships. All suppliers are
Supplier Formulate an annual supplier audit plan for existing suppliers provide guidance to non-compliant required to sign an integrity-related agreement that clearly defines
policy and suppliers with a deadline for rectification and offer targeted support or on-site coaching for those the principles of integrity to be upheld by both parties during their
compliance who fail to meet rectification standards collaboration. It strictly prohibits any form of unfair competition such
risks Develop Supplier Delivery Audit Checklist based on the principle of multi-sourcing for single as commercial bribery and benefit laundering. The Company has
materials to eliminate policy compliance risks established dedicated whistleblowing channels encouraging mutual
Establish digital systems to ensure supplier information is clear and transparent supervision between internal employees and suppliers. We maintain
a "zero-tolerance" policy for any violation of the integrity agreement.Once verified the partnership will be immediately terminated and
relevant parties will be held accountable effectively safeguarding the
Anti-fraud and whistleblowing system
Incorporate supplier production environment management into the QSA Supplier Audit Standards transparency and fairness of our supply chain collaborations.Supplier
production as one of the new supplier audit requirements
environment Supplier production environment management is specified in the Stakeholder Notification Letter
management and is a requirement for new supplier qualification. Supplier capacity building
risks Require a supplier's ISO 14001 system certificate as part of the new supplier onboarding process
In response to suppliers' needs for improvement in quality control ESG compliance and digital operations the Company
periodically organizes on-site training study tours and workshops. The training content covers multiple dimensions including
lean production zero-defect quality management environmental compliance requirements and SRM system operation.Additionally through supplier conferences and specialized seminars we share advanced industry experience and technological
Supplier Incorporate supplier employee benefits development channels and training programs into the trends encouraging suppliers to achieve breakthroughs in technical innovation green production and management optimization.personnel
QSA Supplier Audit Standards as one of the new supplier audit requirements This enhances the stability and competitiveness of the entire supply chain providing stronger support for the Company's global management expansion and product innovation and achieving mutual benefits for both supply and demand sides.Building the industry supply chain ecosystem—Driving upgrades
through all-dimensional two-way communication and knowledge sharing
Mandate the use of standardized turnover boxes as required by Jack and incorporate this into the
Supplier Management Regulations
Supplier When onboarding new suppliers sign a Stakeholder Notification Letter with them and conduct strict The Company has established a multi-dimensional comprehensive communication mechanism with its suppliers conducting
logistics qualification audits to prevent environmental and social impacts caused by material issues over 50 all-dimensional two-way interactive events annually. These include the annual supplier conference peer advisory board
When onboarding new suppliers incorporate logistics risk into the QSA Supplier Audit Standards high-level mutual visits and live-stream interactions ensuring timely information exchange between supply and demand sides.as one of the new supplier audit requirements This fosters a mutually beneficial and win-win situation promoting the sustainable development of the supply chain ecosystem.Supplier ESG management
The Company considers the Stakeholder Notification Letter an essential
document for supplier admission and partnership clearly informing them Peer advisory board: Quality conference live streams: Mutual-sharing book clubs: Quality exchange and
of compliance requirements in environmental protection safety and labor A dual drive of "co- Strengthening synergy building Solidifying the foundational advanced studies
creation + contribution" consensus and co-constructing quality logic of management consensus on standards
practices. We require suppliers to strictly adhere to the relevant laws and
regulations of both China and target markets and to hold certifications
such as ISO 14001 Environmental Management System and ISO 45001
Occupational Health and Safety Management System. Concurrently
we dynamically manage suppliers' ESG-related qualification documents
through the SRM system. This is combined with annual and ad-hoc audits
to regularly assess their compliance performance. For suppliers with
compliance risks we promptly issue rectification notices and track the Knowledge
effectiveness of corrective actions. Those who fail to meet the standards Supplier system audits System empowerment Zero-defect education sharing to deepen to ensure stable to guide quality to enhance zero-defect exchanges and share
will have their partnerships suspended or be added to the elimination list product quality improvement awareness experiences for win-win cooperation
thereby mitigating supply chain ESG compliance risks at the source. Stakeholder Notification Letter
61 622025 Environmental Social and Governance (ESG) Report
Equal treatment to small and medium-sized enterprises Supporting industry development
The Company always adheres to fair and honest business principles viewing small and medium-sized enterprises as equal and Jack Technology continues to plough into the construction of the industry ecosystem through in-depth participation in the
important strategic partners. In our collaborations we uphold the spirit of the contract strictly follow the payment cycles stipulated formulation of industry standards actively appearing in major exhibitions at home and abroad and carrying out diversified
in our agreements and ensure all payments are made in full and on time with absolutely no intentional delays. We understand foreign exchange activities to empower the industry's high-quality development with its own technological deposits and resource
that a stable cash flow is the lifeline for the healthy development of SMEs. Therefore we consider "never defaulting on payments" advantages and to lead the transformation of the sewing machinery industry into digitalization intelligence and greening.a fundamental requirement and a solemn commitment for ourselves. We are dedicated to establishing and maintaining long-term
trust-based and mutually beneficial partnerships with all our partners regardless of their size through transparent and efficient
collaboration achieving mutual success and growing together. Cutting-edge technology exploration to define the future of
the industry
Indicators and targets
The Company has set clear indicators and targets centered on supply chain sustainability. Core indicators include the ESG
system certification coverage rate for new suppliers social and environmental impact assessments of suppliers and supplier
capability enhancement. We continuously increase the proportion of compliant suppliers driving steady improvement in supply
chain ESG performance and collaborative efficiency.Flexible fabric manipulation robots Jack launched Aitu the world's first
debuted at IROS 2025 (the world's premier brand to deeply integrate AI with
Key performance event for robotics and AI) apparel manufacturing
Among them
During the reporting period a total of
171 49 suppliers passed sustainability-related new suppliers were certified system certifications including environmental
social and quality standards
Released the first At the 2025 Zhejiang Province Robotics Jack & NVIDIA collaborate
AI sewing machine Industry Development Conference to explore the future of AI
A total of A total of No suppliers were rejected Jack shared the Application of Robots in apparel manufacturing
due to non-compliance in the Garment Industry111 suppliers underwent social 111 suppliers underwent environmental with environmental and
impact assessments impact assessments social factors
Conducted Large-scale supplier training Vendor study sessions were Supplier workshop
51 conducted on on-site supplier
training sessions 1 session 3 occasions 3 sessions
63 642025 Environmental Social and Governance (ESG) Report
Led the national key R&D program to overcome the key Ai sewing technology debuts at provincial industry conference empowering
technology of autonomous operation of sewing robots the integration of intelligent garment manufacturing and the robotics industry
In March 2025 Jack launched the "Development and Application Verification of Autonomous Sewing Robot System" project In December 2025 the 2025 Zhejiang Province Robotics Industry Development
a key project of the National Key R&D Program for Intelligent Robotics which is dedicated to overcoming the core technical Conference themed "Embodied Intelligence Leading Hangzhou Smartly
problems of the intelligent transformation of the sewing industry and to promoting breakthroughs in the robot's autonomous Inspiring the Future" was held in Yuhang Hangzhou. The conference was co-
decision-making high-precision operation and intelligent sensing capabilities. hosted by the Zhejiang Robot Industry Association the Zhejiang University
Robotics Institute the Robotics Branch of China Federation of Electronics
and Information Industry the Zhejiang Institute of Quality Sciences and the
People's Government of Yuhang District Hangzhou. It aimed to gather industry
wisdom discuss cutting-edge trends showcase innovative achievements and
collaboratively promote the high-quality development of the robotics industry.The President of Aitu the Company's brand was invited to attend the
conference and deliver a special presentation. In his presentation he pointed out
that Aitu innovatively integrates a dual-track control method combining model-
driven and learning-driven approaches. Focusing on specific industrial scenarios
such as fabric piece separation precise gripping and placement Aitu is
committed to providing highly adaptive intelligent manufacturing solutions for the
Project "Development and Application Validation of Autonomous Sewing Robot System" global manufacturing industry by coordinating the work of robots and automated
equipment combined with AI intelligent sewing technology thereby continuously 2025 Zhejiang Province Robotics Industry
empowering the efficient transformation of the apparel industry. Development Conference
Industrial ecological synergy building value networks together
In 2025 through diverse platforms such as industry summit forums and industrial matchmaking events the Company will continue
to deepen its collaboration and synergy with upstream and downstream partners in the industrial chain industry associations and Leading with global exhibitions mastering the right to speak
scientific research institutions. By actively sharing practical experience in fields like intelligent manufacturing and green production
we aim to inject momentum into the industry's technological innovation model upgrades and ecosystem co-construction driving the in standards
sewing machinery industry toward high-quality development.The Company actively participates in key domestic and international industry exhibitions to showcase cutting-edge technological
Decathlon Vietnam team's visit deepens industrial achievements and build global cooperation bridges. In September 2025 at the China Int’l Sewing Machinery and Accessories Show
ecosystem cooperation (CISMA2025) the Company unveiled its latest technological achievements including humanoid robots and the Ai10 intelligent sewing
machine. It also showcased core products from its brands such as Bullmer and Maica as well as the new high-end brand Aitu. Features
In August 2025 the executive team from Decathlon (Vietnam) a global sporting goods retail giant visited Jack Technology to like adaptive learning and real-time defect detection drew widespread attention. On-site the Company reached joint innovation strategic
inspect the Company's innovative strength in the field of intelligent complete garment manufacturing equipment. The two parties cooperation agreements with several leading global apparel brands and supply chain partners breaking the technological monopoly of
engaged in in-depth discussions on industry pain points and development trends unanimously agreeing that brand owners international brands in this field and winning the "2025 IFA Gold Award for AI Product Innovation."
manufacturers and equipment service providers should work together to build a collaborative industrial ecosystem. This visit
enhanced mutual understanding and trust laying a foundation for future cooperation to jointly promote the transformation and
upgrading of the apparel industry toward greater intelligence and reduced reliance on manual labor.Industry standard setting
The Company fully leverages its technological leadership by deeply participating in the formulation of industry standards promoting
the standardized development of the industry. As of the end of the reporting period the Company has led the formulation of 2 national
standards including GB/T 30420.1-2024 Sewing machinery terminology - Part 1: General terminology and GB/T 30420.3-2023 Sewing
machinery terminology - Part 3: Spreading and cutting machines terminology and 20 industry/association standards. It has also
participated in the formulation of 4 national standards such as GB/T 30420.4-2025 Sewing machinery terminology - Part 4: Functional
component terminology and 89 industry and association standards.At the end of 2025 two Jack experts joined the revision group for
the international standard IEC 60204-31 initiating the drafting and revision of international standards on behalf of Chinese enterprises.Decathlon team visits Jack Technology
65 662025 Environmental Social and Governance (ESG) Report
Protection of employee rights Recruitment
Jack Technology is committed to building a fair and transparent employment system that effectively protects the rights and interests of Relying on campus recruitment social recruitment and internal selection the Company has set up a diversified talent introduction
its employees. Adhering to the talent philosophy of being "value-creator-oriented and striver-oriented" the Company empowers every system to actively promote local employment and the employment of special groups so as to inject impetus for the development of the
employee to realize their full potential in the most suitable roles by implementing flexible work models personalized career development community; at the same time the Company strictly complies with the Company Law of the People's Republic of China the Labor Law of
paths and internal innovation incentive mechanisms. Backed by a comprehensive welfare system systematic career development the People's Republic of China the Labor Contract Law of the People's Republic of China and other relevant laws and regulations and
support and continuous innovation incentives the Company provides employees with a broad platform for growth. Simultaneously it formulates and implements Management Regulations for Talent Recruitment which continues to standardize the recruitment process to
actively promotes a spirit of pragmatism self-motivation and positive energy fostering a healthy and upward-looking work environment ensure that the employment opportunities are fair and just.to continuously enhance employee well-being and sense of belonging.Key performance
Key performance
During the reporting period the Company's per Per capita revenue generation During the reporting period Newly recruited employees
capita salary income for the year reached reached approximately RMB the Company had a total of 1383 employees
approximately RMB 7576 employees
146300 895300(RMB 144800 in 2024)
Employee turnover rate: Labor contract signing rate:
10%100%
President
Corporate Business decision-making iron triangle
operations
Global General Global General Proportion of female Proportion of R&D staff:
Political Commissar Department Flat organization
Department
close to customers employees:
for efficient 31% 19%operations
Business operations
Operations Battle Zone GM AR LCDT Number of AI software Al software talents jointed in 2025
center Iron triangle product Key
lines / battle zones Channel account Product talents:operations operations management
iron triangle iron triangle iron triangle 19
Chief Stuff Chief Political SR FR LPDT LPCT
Officer Commissar 51
Capability Finance BP Political commissar ITBP ......center Diversity and equality
Finance Human Process
iron triangle resources IT iron......iron triangle triangle
COE SSC COE SSC COE SSC ...... ...... The Company consistently upholds the principles of diversity equality and inclusion. We strictly adhere to the Law of the People's
Republic of China on the Protection of Disabled Persons prohibiting any form of discrimination based on gender age education or
Note: AR: Account Representative; SR: Solution Representative; FR: Fulfillment Representative; LCDT: Product Charter Development other differences thereby guaranteeing fair employment and development opportunities for all employees. Concurrently we place
Team; LPDT: Product Development Team; LPCT: Product Management Team; COE: Center of Expertise; SSC: Shared Service Center; special emphasis on the employment rights of individuals with disabilities having established a dedicated "Sunshine Home for the
BP: Business Partner Disabled." Furthermore the Company adjusts work arrangements and optimizes the environment for pregnant employees to safeguard
their health and safety in every aspect. Through these initiatives we continue to foster a work atmosphere of equality and respect
demonstrating our commitment to social responsibility and promoting harmonious development through concrete actions.Flexible working Personalized Internal innovation The iron
modes career planning mechanisms triangle team
Localized office + Customized career Encourage Form project teams to Sunshine home: Paving the path to equal employment with accessibility
conquer strategic high-
results-oriented paths based on employees to initiate ground projects leverage
aptitude and interest new business and The Company places a high value on the employment rights of persons with disabilities and has recruited a total of 90 employees individual strengths and
share the benefits enhance problem-solving with disabilities. We tailor job positions to match their specific characteristics and abilities and have established a dedicated
when successful to capabilities.And the "Sunshine Home for the Disabled." The workplace is equipped with facilities such as ramps elevators Braille signage and
stimulate innovation effectiveness accessible handrails. We have also enhanced work-life support systems and provide rehabilitation assistance. Through
of teamwork comprehensive accessibility measures we empower employees with disabilities to work conveniently integrate confidently into
society and share in the opportunities for a fulfilling life.Talent characteristics management
6970
Guided by the principle of creating value for customers
Oriented by business results to fully support market operations2025 Environmental Social and Governance (ESG) Report
Protection of rights and interests
The Company strictly complies with laws and regulations such as the Law of the People's Republic of China on the Protection of Minors
the Regulations on Paid Annual Leave for Employees the Regulations on Work-Related Injury Insurance and the Provisions on the 1
Prohibition of Using Child Labor. The Company firmly opposes any form of child labor or forced labor and strictly commits not to employ The First "3": 1. Growth 2. Honor 3. Compensation Growth and
individuals under the age of 18 for work that endangers personal safety or health. We consistently apply "growth and opportunity incentives honor and opportunity incentives
spiritual incentives and compensation and material incentives" at
In terms of working hours management the Company strictly adheres to relevant labor laws and regulations implementing different three levels to stimulate the spiritual drive and work motivation of the
systems by category: administrative positions follow a standard five-day eight-hour workweek while production positions utilize a organization and its employees
comprehensive calculation of working hours system to scientifically and reasonably arrange the work schedules of front-line employees.In addition we effectively protect employees' statutory rights to rest such as paid annual leave and public holidays and strictly prohibit The Second "3": 1. Salary 2. Dividends 3. Shareholding Winning battles
forced overtime. If overtime is necessary due to work requirements the Company will pay overtime wages or arrange for compensatory We are committed to "short-term fixed salary and bonus earning &
High performance
Team incentives
time off in strict accordance with legal provisions. sharing medium-term strivers' dividend plan and long-term restricted
stock and new business partner mechanisms" at three levels to enable
Key performance employees to co-create and share the results of corporate operations 3 2
with the Company Compensation Honor and
The Company had no labor disputes labor dispute cases or incidents of Social insurance coverage rate: and material spiritual incentives incentives
labor discrimination and the labor contract signing rate was 100%
100% 100% 3+3 comprehensive incentive system
Zero tolerance to protect rights jointly building a fair and healthy workplace Comprehensive compensation and incentive system
The Company consistently prioritizes the protection of employee rights
and systematically conducts specialized awareness campaigns on anti-
discrimination and anti-harassment. Through training series such as
"Keeping Children Safe from Harassment" and "Workplace Equality" we
have deeply embedded preventive awareness among all employees. We
have established clear whistleblowing and feedback channels encouraging Adhere to the principle of "Earn & Share" to enable strivers to co-create and share the results of business performance with the Company
employees to speak up and report any instances of discrimination or Adhere to the principle of "More Work More Pay" unswervingly tilting
harassment they experience or witness. This initiative not only reinforces remuneration and opportunities toward outstanding employees
a shared culture of zero tolerance but also continuously improves Equity incentives
the workplace environment ensuring that a fair healthy and positive
atmosphere serves as the strongest support for our employees. Anti-harassment training Strivers' incentive program Restricted stock incentives.Bonuses (earn & share) Inspire entrepreneurial spirit Profit Sharing: Higher profits in senior executives; share
Fixed salary (job value) Operational bonus pool: Performance lead to greater sharing rewards and bear risks
growth drives bonus growth increasing cash rewards for Co-investment in subsidiaries
Compensation and incentives Grading by position Flagship Project Award: Incentivize top key personnel and enhancing by core employees:salary by grade talent to take on challenging strategic retention of top talent Stimulate innovation
Matching people to positions projects and entrepreneurship
The Company consistently focuses on value creation and is dedicated to building a comprehensive and efficient incentive mechanism. adjusting salary with position Special Incentive Award: Incentives for empowering subsidiaries
Relying on a scientific compensation system and precise performance evaluations we continuously optimize talent allocation fostering changes specific projects
synchronized growth between employees and the enterprise. The effective implementation of equity incentives deeply aligns individual Position-based salary: Determined by "Job Departmental bonuses: Determined by the Medium- and long-term incentives: In addition Value Evaluation." performance output of each product line to job value and performance output long-
contributions with the Company's long-term development tangibly enhancing the team's sense of responsibility and belonging. In a fair Individual salary: Based on meeting "Job Individual bonuses: Determined by individual term incentives are granted to high-potential Qualification Standards." performance within the departmental bonus pool high-performing employees who demonstrate
transparent and dynamic organizational atmosphere employees' motivation for value creation is continually stimulated and their sense Job competency: Assessed by AT evaluation Bonus orientation: High performance high a sense of mission and alignment with the and specialized committees contribution high bonus Company's culture and values
of gain is constantly enhanced powerfully driving the mutual success of both talent and the Company.Non-material incentives: Growth respect and recognition – The key to boosting employee motivation
Strategic
conduction system Incentive and drive system
CEO
Philosophy Compensation "1" closed loop: High-potential
and vision Medium- and long-term incentives Senior Leadership style
Self-value realization executive Strategy determines the direction of incentives while incentives
development program
provide the momentum for strategy. The two interlock like a Promotion and Organizational Honor-based
Strategic planning wedge penetrating organizational levels to drive goal achievement development atmosphere incentives
Compensation "2": Two major systems: Strategic Conduction System Incentive Growth Respect Recognition
Medium- and long-term Middle and Drive System Job rotation and Welfare and care Praise and incentives management empowerment appreciation
Operational Growth opportunities "5": Five links of strategic conduction: Philosophy—Vision—
execution Planning—Execution—Operation Coaching and Team-building
Compensation "3": Three dimensions of incentive and drive: training activities
Targets and Innovation Grassroots Senior management: Value realization + medium- and long-term
indicators incentives level incentivesIncome
multiplication Middle management: Growth opportunities + medium- and long-
term incentives
Operational level Grassroots level: Compensation security + income multiplication
Employees
71 722025 Environmental Social and Governance (ESG) Report
Diverse honor-based incentives to spotlight value creators
The Company has established a multi-dimensional honor-based incentive system. By setting up special awards such as the 01 Performance plan
Flagship Project Award and the Product Development and Commercial Success Award along with recognition mechanisms like Performance plan
Meritorious Figures Top 10 Eagle Talents and Top 10 Innovation Pioneers we enable outstanding talent from various fields Setting company departmental and individual goals
to distinguish themselves. In addition we have established long-service awards to formally recognize employees who have Repeated communication and 02
continuously served for ten and twenty years. This comprehensive and multi-layered incentive model not only acknowledges consensus building Performance
outstanding current contributions but also rewards long-term loyalty continuously inspiring the dedication and sense of belonging 30% of the time coaching
among all employees.Application of
performance results Performance coachingProduct
Department
Marketing Bonus
Department distribution
Supply Chain Salary
Department adjustment Observation and
International
Business Position documentation
Department
Quality and adjustment Guidance and
Process IT Performance
Department Promotion and feedback
Human Resources
Management development management PDCA 4
Department Long-term cycles company strategy
Strategic and
Financial incentives
Departments
Honor not only affirms employees' work but also helps them achieve good performance and advance in rank 10% of the time 40% of the time
Internal honors list Merit-based culture
04 Performance evaluation
Perfo0rm1ance Organizational
Performance management a绩pp效lica计tion划s
performance evaluation
Individual performance
evaluation
Communication and 03
The Company has established a 271 vitality performance management mechanism based on total responsibility and contribution. consensus Performance
This system integrates evaluation uses a tiered and graded approach identifies top and bottom performers and emphasizes 20% of the time evaluation
communication. To optimize organizational efficiency unleash employee potential and drive strategic implementation the Company
has built a complete closed-loop performance management system in accordance with the Performance Management System. Through
precise goal setting dynamic process control and objective result evaluation performance management not only helps the Company
achieve efficient resource allocation and improve overall employee performance but also clarifies career growth paths and provides Performance management system
strong support for employee development.If an employee disagrees with the evaluation result from their performance supervisor or believes it to be unfair they may file an appeal
with the HR Performance COE by submitting a written appeal. The Human Resources Department will conduct an investigation including
peer interviews and collecting feedback from the supervisor and Political Commissar and submit the findings to the departmental AT for
review. If an adjustment to the performance result is required it will be handled following the principle of "up and down adjustments." The
Human Resources Department will provide the employee with the investigation results within one week of receiving the appeal.PBC
Efforts and
Performance of job
PBC contributions
Formation of Notification
responsibilities not Employee grievance AT discussionbeyond job investigative opinions of results
otherwise covered responsibilities
Employee Objective
Submission of
≤ 15% ≤ 35% ≥ 43% ≥ 5% ≥ 2% Employees Stat dissatisfaction with feedback Endapplications
Assessment Content appraisal results performance facts
Evaluation content
Highlights key priorities
Drives comprehensive Human Formation
Primary basis fulfillment of responsibilities Performance Status of human of appeal
and appropriate cross- COE resources investigation
Inform
A B+ B C D report submission employees of functional contributions surveys
to departmental AT coordination
Outstanding Leading Solid Unable to Political resultsSupplementary assessment
commissar
contributor contributor contributor perform job Provision of
duties information Head of support
Performance
Identifying top and bottom performers Combined assessment and evaluation Objective feedback
on employee
Sector AT grassroots
information Department at discussion
conclusion formation
Performance grievance process and channel
73 742025 Environmental Social and Governance (ESG) Report
Equity incentives Talent training and development
In order to strengthen the long-term win-win development of talents and the Company the Company launched the equity incentive plan
employee stock ownership plan and the Striver incentive plan granting equity to the core staff management and outstanding talents Jack Technology has always placed the comprehensive development of its employees at the core of its mission. The Company has
so that their personal interests are deeply bound to the long-term goals of the Company. This initiative effectively enhances the sense established a dual-track career system with both management and professional sequences creating clear promotion channels and
of belonging and mission of the staff stimulates the team's sustained motivation and helps the Company to stabilize and attract more diverse growth paths for its employees.talented people and ultimately brings more generous value returns to the shareholders.M12
Key performance M11 P12
M10 Chairman Chief scientist
Chief marketing
expert
M9 P11
Vice chairman & CEO
2021 Phase III Employee Stock Ownership Plan M8
P10
Senior R&D expert Senior marketing Senior production Company expert technology expertM7 vice president P9 Senior xx director
Including M6 Department general
P8
A total of RMB 154.20 million was manager R&D expert Marketing expert Production technology expert
raised with a 1:1 ratio of financing 564 Deputy general P7 Intermediate employees below M5 manager of department xx director
funds to self-raised funds. The plan Coverage of P6
held 4397901 company shares the senior management level M4 Department director I Senior R&D Senior marketing
Senior production
engineer manager technology
569 P5 engineer569 XX directorcovering employees of whom employees M3 Department director II 07 Technician level 7564 (99.12%) were below the P4 XX managerEmployee Manager/director Intermediate Intermediate Intermediate senior management level. The plan M2 R&D engineer marketing manager production 06 Technician level 6
was completed in 2025. stock P3 technology engineer XX supervisorownership 05 Technician level 5
structure P2 Junior R&D Junior marketing Junior production engineer manager technology engineer XX specialist 04 Technician level 4
P1 Trainee R&D Trainee marketing Trainee production engineer manager technician Trainee xx specialist 03 Technician level 3
02 Technician level 2
2023 Restricted Stock Incentive Plan
01 Technician level 1
* Initial grant: 8.192 million shares Number of Management track R&D track Marketing track Manufacturing track Functional Technical/
were granted at a price of RMB support track skilled track
initial awards:
10.62 per share to 263 individuals Employee Including
257 97.72% stock
Career Career development
of whom ( ) were ownership development path Career development path for the professional sequence path for the technical/
e m p l o y e e s b e l o w t h e s e n i o r 257 structure 263 for management skilled sequencemanagement level. * Reserved employees
grant: 495000 shares were below the senior Dual career paths for management and talent development
granted at a price of RMB 10.12 management level
per share to 38 individuals all of
whom were non-senior management
personnel.
2025 strivers' incentive program
The total incentive amount was RMB 36.69 million granted to 722 individuals
including 716 employees below the senior management level
75 762025 Environmental Social and Governance (ESG) Report
Employee development
Continuousl持y F续o锻rg造in商g业 B领us袖iness Leaders
The Company has developed a unique "Four Wolves" Program
EMT 退 出
talent development system. We implement the "Alpha Wolf E T Exit
Program" to forge business leaders through a diamond model
Guided by its overall development and human resources strategies the Company comprehensively advances talent and a job rotation and exit mechanism; launch the "Wolf Pack EMT CEManTd 候id a补tes
cultivation. Centered on the core principles of "Cultivating Selecting and Discovering Talent" we are committed to Program" for mid-to-senior level successors to strengthen key
becoming an accelerator and incubator for strategic execution cultural inheritance and industrial development. Through position profiling and rotation-based replacement; advance Business Flyin商g E业a g群le 狼Pr o班gram 商业领袖
systematic training and development for various professional and managerial personnel we support the implementation of the "Wolf Warrior Program" for outstanding employees to Premier Leaders头 狼
the Company's strategy business expansion and human capital appreciation. accelerate their growth through wolf warrior classes; and initiate Eagle Pr计og 划ram
the "Wolf Howl Program" for elites from top universities to build Warrior 战Ea 狼gle 班 Program Grassroots M基a层na管ge理me干nt
Ca部dres
a reserve of high-potential talent through targeted development
plans. These four interconnected tiers continuously supply the Top社 Ex招ter牛na人l Hire
Company with high-quality management talent. To date the H专igh业ly水 S平ki高lle、d 商P业ro人fe才ss，ionals and BusinessTal经en过ts其 w他ith优 a秀 P企r业ov历en练 Track Record of
"Wolf Warrior Program" has completed three sessions covering Hunt狼er E 啸ag l e 计 P r证明取得成功
o 划gram Success from Other Excellent Companies
a total of 240 individuals and resulting in the promotion of 59 O校ut招sta优nd秀ing Campus Recruits
海内毕外TO业P20高生校、海
participants (from the first session). Ou外ts顶ta尖nd商in学g院 S头cie狼n特ce质 and Engineering Gr的ad理u工at科es优 w秀ith毕 A业lp生h、a Wolf Traits from
To高p 考20状 U元n、ive学rs生it会ies主 a席t Home and Abroad
and Top Overseas Business Schools
Gaokao Top Scorers and Student Union
Presidents
Leadership diamond model
Jack's strategic planning
Launch of the first alpha wolf class Launch of the wolf warrior class
Talent growth panorama
77 782025 Environmental Social and Governance (ESG) Report
To drive the achievement of our ten-billion-yuan goal the Company has established a strategic engine—Jack Business School. With
Deepening industry-university-research integration: Spearheading major
the mission of "accelerating talent development" and "empowering the organization" the school focuses on forging business leaders R&D projects and supporting talent cultivation in partner institutions
building a win-win industrial ecosystem and accumulating intellectual assets thereby injecting core momentum into the Company's
sustainable growth and industry leadership. In March 2025 to overcome core technical challenges in the intelligent transformation of the sewing industry the Company took
the lead in launching the "Development and Application Verification of Autonomous Sewing Robot System" project. This initiative
School of Business operations panorama was undertaken in collaboration with top-tier domestic universities including Zhejiang University Southeast University South
China University of Technology Jiangnan University and Anhui Polytechnic University as well as leading industry enterprises such
as ROKAE and Soft Robot Tech Co. Ltd. (SRT). The project is dedicated to advancing the innovative application of humanoid
Operational goal robots in the sewing sector with a focus on achieving breakthroughs in key technologies like autonomous decision-making high-
Screening and cultivating business talents who dare to fight and fight well
and who will win in battle to support the realization of Jack's strategic goals precision operation and intelligent perception for robots. Its goal is to inject new momentum into the intelligent upgrading of
China's manufacturing industry.Guiding Principle: Cultivating more outstanding individuals with the most outstanding people focusing
on practical application and results and aligning with performance and business outcomes While engaging in collaborative R&D on cutting-edge technologies the Company also continues to support talent cultivation at
Operational Talent echelon Strategy promotion Supporting marketing partner institutions through dedicated scholarships building a talent pipeline for the future of industrial intelligence. The primary
direction development program and change projects to achieve victories Training model scholarship donations for this year are as follows:
Senior Donation period/agreement
executive Premier Eagle Program
Blockbuster development Marketing business leader On-the-ground application
training camp practical training camp + project tackling Partner institution Annual donation amount signing date
Practical
Flying Eagle Program Zero-defect Marketing dark horse Benchmarking excellence
application Zhejiang University of
series training practical training camp + innovative actions Technology RMB 100000 5 consecutive years of donations
Core staff
Warrior Eagle Program Jack expert Overseas local talent Case studies + work
sharing session acceleration camp improvement Xi'an International
Studies University RMB 50000 Agreement to be signed in 2026
Hunter Eagle Program SE training camp Ace sales manager Summary reviews + training camp action plans Training &
Newcomers practice Taizhou Technician College RMB 6000 5 consecutive years of donationsIntelligent total Customized program
Future stars training camp solutions empowerment for regional general Knowledge contests
training camp managers + debates
Operational Needs assessment Program design Training implementation Training evaluation
processes Building a cooperation platform with top global universities to systematically
Operational Knowledge Training management Curriculum system Instructor team Mentor team Learning platform advance the recruitment and cultivation of high-end overseas talentsupport management system
To advance the recruitment of elite overseas talent Jack actively builds a global industry-university-research collaborative platform.University-enterprise cooperation The Company has established regular cooperation mechanisms with world-class universities such as the Hong Kong University
of Science and Technology Technical University of Munich RWTH Aachen University and Nanyang Technological University.School-enterprise cooperation is a key path to help enterprise progress and talent cultivation the Company takes the initiative to join Through initiatives including reciprocal visits specialized recruitment events joint school-enterprise programs and targeted talent
hands with universities deepen the integration of industry and education promote collaborative innovation and jointly build a high- acquisition Jack promotes deep integration of technological innovation achievement commercialization and high-end talent
quality talent team relying on joint technological research and resource interoperability and sharing and constantly expanding the cultivation comprehensively enhancing corporate core competitiveness and injecting strong momentum into the high-quality
diversified forms of cooperation injecting impetus for the industry's development and actively fulfilling its social responsibility. development of the industry.Company school-enterprise cooperation
已N已已 ational universities and colleges Overseas colleges and universities
Tsinghua University Donghua University Harvard University Hanoi National University
Zhejiang University Zhejiang University of Nanyang Technological Hanoi University Vietnam
Technology
Shanghai Jiao Tong University University Hanoi University of Industry
Wuhan Polytechnic University
Huazhong University of Chinese University of Hong
Jilin International Studies Kong Hanoi National UniversityScience and Technology
University Technical University of
Central South University Taizhou University Munich
Jiangnan University Humboldt University of Berlin
RWTH Aachen University
79 802025 Environmental Social and Governance (ESG) Report
Employee health and well-being Identified occupational health and safety risks
Risk type Risk description Response measures
Jack Technology has consistently adhered to a people-oriented philosophy placing high priority on employees' occupational safety
mental health and quality of life while effectively safeguarding their lawful democratic rights. The Company strictly complies with 1. Establish and obtain ISO 45001 Occupational Health and Safety
relevant laws and regulations including the Labor Law of the People's Republic of China the Trade Union Law of the People's Republic Manufacturing and service Management System certification to systematize and standardize
of China and the Trial Measures for Collective Wage Negotiation. We have established robust Regulations on Occupational Safety and processes involve potential management.Health to fully protect employees' workplace safety implement diverse welfare policies and organize a wide range of recreational and hazards such as machinery 2. Establish the Work Safety and Occupational Health Committee
Workplace safety operation and electrical use as well (Safety Committee) and the Safety and Environmental Management
cultural activities to continuously enhance employees' sense of belonging and cohesion. Emphasizing democratic management the incidents and as potential occupational health Department.Company actively encourages employee participation in corporate governance to foster a harmonious and stable working environment. occupational impacts from prolonged exposure. 3. Adopt the "Eight Energy Source Identification Method" and the "Eye
health risks Inadequate management could on Safety" digital platform to systematically conduct risk identification
adversely affect employees' and establish a risk inventory database.Occupational health and safety physical and mental well-being and 4. Organize regular safety training and emergency drills to ensure
disrupt work continuity. 100% coverage and qualification rates for both new hires and
The Company places high priority on occupational health and safety management and is committed to creating a safe and reliable incumbent employees.working environment for its employees. By establishing a comprehensive management system and rigorously implementing measures 1. Strictly implement the Regulations on Occupational Safety and
such as risk identification emergency drills and safety training we minimize safety risks and provide solid assurance for employees' Production A safety incident or occupational Health and continuously accumulate and refine risk prevention and
operational safety. disruption and health issue could disrupt normal control experience through the "Safety Journey" project.operational business operations and damage 2. Strengthen specialized emergency response drills—such as
Governance compliance risks the Company's reputation. those for confined space operations—to test and enhance the rapid response and command capabilities of emergency rescue teams.The Company highly values occupational health and safety management has obtained ISO 45001 Employees—particularly new 1. Conduct regular organization-wide occupational health and safety
management system certification and strictly adheres to relevant standard requirements. The Insufficient hires or those in critical roles— training to ensure adequate per capita training hours.Company has established a Work Safety and Occupational Health Committee (hereinafter referred employee may become weak links in safety 2. Focus on enhancing employees' "Four Capabilities": identifying
to as the "Safety Committee") chaired by the enterprise head with department heads serving as safety skills and management if they lack essential and eliminating hazards extinguishing incipient fires organizing
awareness risks safety knowledge hands-on skills evacuation and escape and conducting fire safety education and
committee members. Concurrently the Safety and Environmental Management Department has been and risk awareness. awareness campaigns.established as a dedicated unit responsible for enabling and overseeing safety operations. Each
department designates its head as the departmental safety officer and appoints a safety manager or
safety coordinator to assist in implementing all safety requirements. While reporting directly to their
department head on a day-to-day basis the performance of safety managers or coordinators is also
Occupational health and safety
subject to cross-functional evaluation by the EHS Management Department to strengthen execution management system certification Identified occupational health and safety opportunities
and oversight effectiveness.Opportunity type Opportunity description Response measures
Strategy Building a full-participation system where "everyone is responsible 1. Enhance employee engagement and retention: A safe and healthy
Exceptional safety accountable and benefits from work environment is a key foundation for attracting and retaining The Company assigns work safety and occupational health responsibilities to every position process and individual employee. Through culture enhances safety" along with fostering talent helping reduce turnover costs.a dual-force model of "proactive employee participation and leadership-led implementation" we cultivate an occupational health and organizational a culture of "Partnership in 2. Promote management synergy and efficiency: A clear accountability
safety (OHS) culture of "Partnership in Health Collaboration in Safety." The Company has established the core OHS objective of "Zero cohesion Health Collaboration in Safety" framework and dual-participation model (employee involvement significantly enhances employees' leadership demonstrat ion) strengthen cross-departmental
Injuries Zero Occupational Diseases and Zero Health Hazards." Leveraging full-staff risk identification full-staff training participation sense of belonging security and collaboration and improve overall operational efficiency.and full-staff supervision of implementation we are fully committed to achieving: the occupational health goal of "preventing the team cohesion.emergence of legally defined occupational diseases" the work safety goal of "preventing all types of safety incidents" and the
compliance management goal of "eliminating accountability gaps and management blind spots." We unite all personnel to safeguard the Proactive risk identification routine 1. Ensure supply chain reliability and on-time customer delivery:
physical health and operational safety of employees outsourced workers and related parties. Systematic training and drills and digitalized management control enable effective incident A stable production environment is essential for meeting delivery
ensures prevention ensuring smooth and commitments and maintaining customer trust.operational continuous production operations 2. Build a responsible brand image: Consistently strong safety
Three major goals stability and minimizing unplanned
performance helps establish a compliant reliable and people-centric
downtime. corporate reputation among customers partners and the community.Culture Core goal Occupational health goal:
Occupational Preventing the emergence of Through systematic training 1. Reduce incidents and direct losses: Enhanced self-rescue mutual
health Partnership legally defined occupational High-quality and practical drills we develop aid capabilities and risk awareness help prevent minor hazards from Zero injuries
and safety in health zero occupational diseases safety team a workforce with high safety escalating into major incidents at the source.management collaboration in diseases and Work safety goal: Preventing empowers awareness and emergency 2. Develop sustainable endogenous safety capabilities: Embed safety
strategy safety zero health all types of safety incidents organizational response capabilities—a valuable knowledge into organizational memory and employee habits reducing
hazards Compliance management goal: resilience asset for preventing and managing reliance on external oversight and building long-term self-sustaining
Eliminating accountability gaps unexpected incidents. safety management capacity.and management blind spots
81 822025 Environmental Social and Governance (ESG) Report
Impact risk and opportunity management Roadshow vehicle delivers on-site training enhancing skills through practical drills
The Company comprehensively identifies occupational health and safety risks through systematic risk identification and assessment.In partnership with Shenzhen Safety-Way Jack launched the "Safety Journey" project: applying the "Eight Energy Source Identification During Work Safety Month in June 2025 the Company partnered
Method" to identify hazards across all production and service processes while leveraging the "Eye on Safety" digital platform to with a professional organization to bring in the ZKH Safety
standardize the end-to-end approval workflow for risk identification ensuring accuracy and validity. The project also establishes a risk Roadshow Vehicle for an immersive safety experience event.inventory database enabling continuous accumulation and iterative enhancement of organizational risk prevention experience to support The event featured first-aid instruction and hands-on practice
long-term improvement in safety management capabilities. where employees learned CPR trauma bandaging and other
Occupational health and safety management measures emergency skills under expert guidance. Participants also closely
interacted with various personal protective equipment (PPE) to
Health risk identification and control understand proper usage. Targeted at safety officers and key-
position personnel the event combined theory and practice
Risk identification and assessment: Leveraging AI agents and applying the "Eight Energy Source to significantly enhance critical staff's emergency response
Identification Method" we have identified over 5000 risk scenarios. After determining risk levels using capabilities and safety awareness laying a solid foundation for
the risk matrix method we focus on medium-to-high risk positions and embed positional red lines into job strengthening the Company's safety defenses. Safety month activities
operating standards to ensure all employees understand and accept risk control requirements. A five-level
spot-check process is implemented to guarantee 100% closed-loop execution of all control measures.Safety inspections and rectification: Through various inspection formats—including routine pre-holiday
Implementing green and safe management of special equipment to build a
comprehensive specialized and seasonal checks—we comprehensively identify safety hazards. Issues dual defense for zero accidents and low-carbon operations
are promptly rectified and long-term preventive measures are established to avoid recurrence.To ensure production safety and promote low-carbon operations the Company has systematically implemented a green and safe
management system for special equipment. By strictly complying with national regulations we achieved 100% registration and
periodic inspection rates for all special equipment maintaining zero safety incidents throughout the year. Building on this the
Company innovatively integrated the "Eight Life-Saving Rules" for equipment with energy isolation controls effectively eliminating
abnormal equipment wear and energy waste caused by non-compliant operations. This system deeply aligns safe equipment
operation with low-carbon production goals enhancing energy efficiency while reinforcing the foundation of work safety thereby
providing robust support for sustainable operations.Emergency plans and risk drills
Emergency plan formulation: Based on risk identification results the Company has developed specialized
emergency response plans and on-site handling procedures compiled into a manual to ensure structured
and standardized emergency responses.Emergency drills: In 2025 the Company organized over 220 comprehensive specialized and on-
site emergency drills covering scenarios such as electric shock and mechanical injuries enhancing the
emergency response capabilities of all employees.Safety incident handling and improvement Eight life-saving rules—four musts four prohibitions
Incident handling process: We have established a comprehensive occupational health and safety incident
handling process. After an incident occurs detailed information must be reported in the Company's main
communication group and recorded via the "Eye on Safety" system. Investigations are conducted at the
workshop or department level to determine root causes and propose corrective actions ensuring clear
accountability and effective remediation.Zero-defect safety management mechanism
The Company has introduced the "Zero-Defect" concept into safety management treating every major
near-miss or failure of control measures as if it were an actual incident. By analyzing precursors and
personnel psychological expectations we uncover systemic root causes behind management gaps aiming
to implement comprehensive systemic safeguards to prevent real accidents.Encouraging Simulating incident Understanding Investigating Efficient incident
hazard reporting scenarios employee expectations systemic root causes prevention
83 842025 Environmental Social and Governance (ESG) Report
Employee benefits
Fire drills enhance skills and build a safety "firewall"
Based on policies such as the Management Regulations on Welfare Management Regulations on Loans for House Purchase and
In August 2025 the Company's fire emergency rescue team conducted a fire safety drill to enhance employees' "Four Capabilities": Management Regulations for Vehicle Allocation the Company has established a comprehensive and diverse benefits package
identifying and eliminating fire hazards extinguishing incipient fires organizing evacuation and escape and delivering fire safety encompassing statutory entitlements and Jack-specific welfare offerings. This robust system not only boosts employee loyalty and
education. The drill simulated a realistic fire scenario with particular emphasis on emergency response procedures for confined motivation but also enhances team responsibility and cohesion. Guided by a humanistic care philosophy the Company is committed to
space incidents testing the team's integrated command and rapid response capabilities. Through hands-on practice employees supporting employees facing hardship or special circumstances creating a deeply resonant care mechanism.further mastered fire alarm protocols equipment usage and evacuation techniques significantly improving coordination and safety
awareness—providing solid assurance for the sustained stability of the Company's safety performance.Insurance benefits Leave benefits Other benefits
1. Social Insurance (Five social Includes statutory holidays annual Holiday benefits
Indicators and targets insurances and housing fund leave 4 hours of paid personal care allowances
contributions upon employment); leave per month sick leave accommodation/rental subsidies.
2. Trade Union Insurance (covering marriage leave bereavement leave
hospitalization critical illness maternity leave paternity leave
Key performance and special disease insurance for breastfeeding leave miscarriage
female employees). leave childcare leave caregiver
leave and family visitation leave.During the reporting period in addition to organizing internal occupational health and work safety
training for all staff the Company actively encouraged employees to participate in Zhejiang
Province's "Million Employee Safety Training" program. The total duration of occupational health and
work safety training was approximately 120000 hours with an average of 15.8
training hours per person
Company-wide
benefits
Each team held two team activities per month. During the reporting period over 3024 team
activities and more than 150 training sessions were conducted with a 100% completion
rate for team activities
Benefits for frontline
employees Benefits for special groups
100% Meal subsidy: Subsidies Benefits for core talent Personalized benefits Job-specific insurance: 1. pass rate for new employee three-level safety education for breakfast lunch Retiree Accident Insurance;
100% and dinner based on Home purchase/renovation Children's education support: 2. Domestic Sales Staff completion rate for the work safety training plan for on-the-job production employees employees' working hours. loans: High-performing Annual enrollment assistance Accident Insurance; 3.
Occupational health: employees may receive for employees' children International Trade Sales
Prioritizing employees' interest-free loans for home entering Grade 1 and Grade Staff Overseas Insurance.occupational health rights purchase or renovation based 7; summer camps and Retirement care: Eligible
with career-long health on their job grade. enriching holiday activities pension benefits based on
screening coverage. Company vehicle benefit: High- are organized to alleviate years of service at Jack.performing employees may be parental concerns. Special condolence:
allocated company vehicles Filial piety benefits: Filial Provided to employees
according to their job grade. piety fund etc. hospitalized due to illness
Employee stock ownership Recognition incentives: or work injury; extended to
Employee care and activities plan: Long-term incentives for Quarterly semi-annual and employees whose immediate
strivers including restricted annual awards. family members are seriously
stock; higher performance Team-building activities: The ill or have passed away.The Company consistently prioritizes employees' physical and mental well-being and quality of life continuously strengthening its yields greater allocation. Company provides funding to
Health benefits: Annual facilitate diverse interactions.welfare and care mechanisms. By implementing diverse welfare policies carrying out heartfelt support initiatives and organizing rich health check-ups provided for
cultural activities we genuinely enhance employees' sense of belonging and team cohesion fostering a harmonious inclusive and employees at all levels.motivated corporate atmosphere.
85 862025 Environmental Social and Governance (ESG) Report
"Filial piety cards" convey warmth and nurture a culture of respect for the elderly Full-cycle protection of rights during the "three periods" demonstrating warmth for returning female employees
The Company has always championed filial piety and benevolence. Through The Company has consistently integrated care for female employees into its corporate culture comprehensively safeguarding
the "Filial Piety Card" benefit care is extended to employees' families. Eligible their rights during pregnancy maternity and lactation. Through reasonable work adjustments and provision of dedicated rest
employees' parents receive a monthly allowance half of which is covered by the and nursing rooms we have established a full-cycle leave system covering maternity leave miscarriage leave childcare leave
Company. Each Double Ninth Festival the Company issues Filial Piety Cards to and daily nursing breaks supplemented by a dedicated maternity fund. This thoughtful support alleviates concerns for female
parents of employees who have completed five years of service with executives employees. The effectiveness of this mechanism is evident: during the reporting period the return-to-work rate after maternity
personally delivering cards to parents residing in the Jiaojiang-Huangyan- leave reached 100% fully demonstrating the Company's respect and warm care for women and fostering an environment of
Luqiao tri-district area. Since its launch the program has benefited over 3200 gender equality and inclusive development.employees' parents. As of December 2025 nearly RMB 44.07 million in filial piety
funds have been distributed effectively promoting respect for the elderly and
strengthening employees' sense of belonging and cohesion. Recreational and cultural activities
Photo of filial piety card distribution
To cultivate a vibrant united and harmonious workplace the Company not only emphasizes welfare and care but also proactively
organizes diverse recreational and cultural activities to support employees' work-life balance.Themed birthday parties add splendor building warm moments in the workplace
Organizing recreational and cultural activities to enrich employee life
The Company meticulously plans monthly birthday celebrations By hosting annual galas traditional festival celebrations social mixers for single employees and basketball tournaments the
each featuring a unique theme—from "Retro Nostalgia Parties" Company continuously enriches employees' leisure lives enhances their holistic capabilities and strengthens their sense of
to "Fun Craft Workshops"—infusing freshness and joy through fulfillment happiness and belonging—injecting vitality into corporate development.creative variety. These themes offer novel experiences and give Festive and themed activities
honorees a sense of personalized ceremony and team warmth
through interaction. Amid laughter and camaraderie employee
bonds deepen and team cohesion grows making each birthday
party a cherished workplace moment and fostering a harmonious
caring corporate family atmosphere.Birthday party activities
The Company grandly hosted a New Year's The Jack Running Club held the 2025 Winter Fun
Heartwarming actions to support persons with disabilities jointly building a dream of inclusive prosperity Eve Gala themed "Crowned with Achievements Run titled "Breaking Ten Billion Creating Brilliance"
Embarking on a New Journey." along the Wenling Binhai Greenway
On the occasion of the International Day of Persons with Disabilities the Company's trade union visited workshops to deliver
holiday greetings and generous gifts to over 70 employees with disabilities encouraging them to embrace life positively and
achieve prosperity through diligence. The Company's Party Committee in collaboration with the local community health center's
Party branch organized a joint Party-building initiative to provide 27 employees with disabilities at the "Sunshine Home Common
Prosperity Workshop" with free health screenings medical consultations and wellness seminars. By combining material support
with health protection the Company demonstrates tangible care ensuring disability inclusion efforts yield real impact and fostering
a harmonious environment of equality mutual support and shared progress.During the Lantern Festival the Company On the Laba Festival the Company
organized riddle-guessing and served Linhai's provided employees with complimentary
specialty zaogeng (a savory rice soup) heartwarming Laba congee
At the Linhai campus a Mid-Autumn Qixi Festival social mixer Jack's 30th anniversary
Festival lantern-making DIY event cultural carnival
International day of persons with disabilities outreach was held under the theme "Crafting
Lanterns Celebrating Reunion."
87 882025 Environmental Social and Governance (ESG) Report
Cultural and sports activities
Forums provide a platform: Frontline voices shape decisions
The Company regularly hosts frontline employee forums creating an open and inclusive setting where over 100 employees
engage in roundtable discussions with senior leaders. The executive team attentively listens to concerns and suggestions
making immediate decisions on resolvable issues and setting clear deadlines for others. These forums create a virtuous cycle:
"the Company understands frontline sentiments and employees grasp strategic direction" transforming employee input into
actionable insights. This builds collective momentum—"shared vision shared progress"—embedding democratic management at
the grassroots level and fueling continuous innovation. In 2025 the Company collected 10 suggestions responded to all 10 and
implemented 9.Youth night school – Youth night school –
Jack exclusive session: Jack exclusive session: Jiangnan subdistrict
Embracing the new era of Badminton village BA basketball
artificial intelligence tournament
Democratic management and communication
With democratic management at its core the Company continuously refines its trade union system
and builds a multi-dimensional employee participation mechanism. Through regular employee
representative assemblies multi-level forums and "Face-to-Face with the Boss" sessions we ensure
employees' deep involvement in decision-making. A responsive mechanism—"request collection timely
response closed-loop resolution"—has been established complemented by diverse channels such as
assembly proposals and an online feedback platform tailored to different employee groups ensuring
all voices are heard. These measures fully realize employees' democratic rights making them active Frontline employee forum
participants and beneficiaries of corporate development and solidifying a foundation for harmonious Communication channels
win-win growth.Key performance
Face-to-face with the boss: Building a "heart-to-heart" communication bridge
During the reporting period the Company distributed 7457 employee satisfaction questionnaires
The Company holds quarterly "Face-to-Face with the Boss" events embodying the cultural values of "no hierarchy no seniority
and freedom of speech." Centered on open zero-distance dialogue these sessions invite EMT members to engage directly with Questionnaire response rate: 70.07%
employees—communicating corporate strategy and performance while sincerely listening to suggestions on career development
and growth. By dismantling hierarchical barriers and removing communication obstacles the events foster information sharing
and strategic alignment. Through genuine two-way dialogue team unity is strengthened cultivating a more resilient and dynamic Overall employee satisfaction at the Company: 94.32%
corporate culture where democratic management takes root. Throughout the year 43 employee suggestions were collected
all received responses and 41 were implemented—demonstrating our commitment to addressing employee concerns through Satisfaction increased year-on-year compared to 2024: 2.9%
concrete action.Employee confidence in the Company's future development: 88.33%
"Face-to-Face with the Boss" event
89 902025 Environmental Social and Governance (ESG) Report
Environmental compliance management Strategy
The Company adheres to a development philosophy that combines compliant operations with proactive governance continuously
To ensure legally compliant and stable production and operations Jack Technology regards environmental compliance management enhancing its environmental management capabilities and risk prevention levels based on meeting legal and regulatory requirements.as the foundational element of its environmental governance system establishing a systematic management framework centered on By strengthening system certification improving institutional frameworks and upgrading technology the Company has gradually shifted
"System Building Risk Prevention Capability Enhancement and Continuous Improvement." By refining its organizational structure its environmental compliance model from "passively meeting requirements" to "proactively identifying risks and implementing preventive
strengthening its institutional framework and enhancing risk identification and emergency response mechanisms the Company controls" driving green operations toward higher standards.continuously improves its environmental governance capabilities ensuring that all environmental indicators consistently meet standards
and laying a solid foundation for green operations and sustainable development. Risk inventory
Governance Risk type Risk description Response measures
Establish a dynamic mechanism for identifying and updating
environmental laws and regulations and conduct regular
The Company integrates environmental protection into its overall group management system establishing a top-down environmental Tighter environmental compliance assessments and internal reviews; strengthen end-
governance structure. It has created an environmental management architecture with the "Supply Chain Department" as the highest regulations and upgraded Policy and compliance risks to-end control through the operation of the ISO 14001 system;
management level the Safety and Environmental Management Department as professional support and each production plant as the emission standards may lead to and proactively plan upgrades and retrofits of environmental
executive body. Through the professional oversight of functional departments and vertical implementation by domestic and international higher compliance costs protection facilities to ensure continuous compliance with
production units the Company has built an efficient environmental governance system extending from strategic design to the production emission standards
endpoint ensuring the precise execution of environmental responsibilities throughout all business processes. Implement online monitoring and equipment interlocking control
Improper management of
for key pollutant-discharging processes increase the frequency
Emissions management exhaust gas wastewater
of third-party testing and enhance the abnormal early-warning
risks or solid waste may result in and closed-loop rectification mechanism to ensure issues are
Supply Chain exceedances or penaltiesOther Departments traceable rectifiable and verifiable
Department
Establ ish a comprehensive hazardous waste ledger
Unregulated hazardous waste management system covering the entire process strictly
Hazardous waste
disposal may lead to legal and enforce requirements for classified collection compliant
Supply Chain management risks
Advisory Department environmental liability risks transportation and standardized disposal and conduct regular
supplier qualification audits and on-site inspections
Develop and dynamically update the Emergency Response
Sudden environmental incidents Plan for Environmental Emergencies conduct regular multi-
Environmental incident risks could impact production and
scenario emergency drills and enhance employee training and
reputation
emergency response capacity building
Increased focus on Enhance transparency in information disclosure and maintain
environmental issues from open channels for complaints and feedback; reduce potential
Social supervision risks
surrounding communities and environmental disturbances through routine inspections and
the public community engagement
List of opportunities
Opportunity type Opportunity description Response measures
Continuously optimize process control through the
Opportunities for green Standardized management environmental management system integrate energy
At the institutional level the Company has established a system covering improves overall operational conservation and emission reduction targets into operations enhancement efficiency performance evaluations and promote a synergistic
environmental factor identification emission monitoring solid waste management management model combining lean and green practices
training and awareness and emergency response including the On-site Environmental
Protection Management System Solid Waste Management Provisions Environmental Resource conservation Waste reduction and recycling Advance projects such as recycling of waste cutting fluids
Protection Training Management System Management System for Environmental opportunities lead to cost optimization
and regeneration of activated carbon; increase investment
in source reduction and resource utilization technologies
Pollution Accidents Environmental Protection Monitoring Management System and
Environmental Factor Identification and Evaluation Control Procedures forming a Brand and reputation Strong environmental Continuously improve environmental compliance levels
performance enhances and disclosure quality and actively participate in green
relatively complete environmental management institutional framework. During the opportunities market and customer trust certifications and industry recognition programs
reporting period all major member enterprises of the Company obtained certification
for both GB/T 24001-2016 and ISO 14001:2015 environmental management systems Opportunities to enhance Environmental training
Integrate environmental training into routine management
enhances employees' reinforcing responsibility awareness and operational continuously promoting standardized and regulated environmental management employee capabilities
through a systematic approach. Environmental management environmental awareness
standards through pre-shift meetings and specialized
system certificate training sessions
93 942025 Environmental Social and Governance (ESG) Report
Impact risk and opportunity management
Focusing on the risks and opportunities related to environmental compliance the Company systematically advances its management Environmental impact assessment and "Three Simultaneities" management
efforts in capability enhancement environmental early warning and emergency management environmental impact assessment and
biodiversity conservation continuously strengthening its environmental governance capabilities and risk prevention levels.The Company strictly adheres to the Administrative Provisions on Environmental Impact Assessment and the "Three Simultaneities"
system for environmental protection. Prior to implementing new construction and technical renovation projects it commissions qualified
third-party organizations to conduct comprehensive assessments of community impact biodiversity and the ecological environment to
Capability enhancement and ensure the scientific feasibility of project site selection and construction plans.environmental training Key performance During project construction the Company ensures that environmental protection facilities are designed constructed and put into
operation simultaneously with the main engineering works thereby minimizing impacts on the surrounding ecological environment.The Company incorporates environmental training into its routine During the reporting period the Company completed two environmental impact assessment projects: the Jack Intelligent High-End
management enhancing employees' environmental awareness Sewing Equipment Manufacturing Base project and the JieTuo Machinery Technical Renovation project.and professional capabilities through pre-shift meeting briefings
specialized training sessions and institutional dissemination.Cumulative participants in energy conservation
During the reporting period a cumulative total of 1150 participants and environmental protection promotions Biodiversity conservation
were reached through energy conservation and environmental through pre-shift meetings:
protection promotions at pre-shift meetings. The Company also The Company identifies the potential impacts of its production operations and supply chain activities on ecosystems integrating
continues to strengthen professional training and capacity building 1150 ecological responsibility into daily business management and supporting ecological conservation through green production for full-time and part-time environmental staff to enhance their risk transformation environmental technology R&D and employee volunteer initiatives.identification and on-site response capabilities.During the reporting period the Company organized employees to carry out garbage cleanup activities along rivers and in forest
parks surrounding the factory area enhancing their environmental awareness of "keeping trash out of rivers and off the ground" and
reducing impacts on the surrounding ecosystem. The Company organizes annual tree-planting activities with cumulative participation
Environmental early warning and emergency management mechanism exceeding one thousand employee instances. Local tree species are planted around the factory area and in ecological restoration
The Company has established a systematic environmental risk management and control mechanism formulating documents zones. Combined with professional guidance trees shrubs and herbaceous plants are scientifically arranged to create habitats for local
including the Emergency Response Plan for Environmental Emergencies Management System for Environmental Pollution Accidents species such as birds and insects contributing to regional ecological restoration.Identification and Control Procedure for Environmental Factors and Management Regulations for Environmental Testing . An
Environmental Factor and Hazard Source Evaluation Team has been established to conduct risk management according to the cyclical
model of "Identification—Control—Evaluation—Improvement." Indicators and targets
Environmental factor identification and evaluation process The Company regards environmental compliance as the fundamental baseline and a key management priority for its production and
operations. It continuously improves its environmental management system and strengthens risk identification and compliance control
Re-investigate identify and mechanisms throughout the entire process ensuring that all production and business activities strictly adhere to national and local
evaluate as necessary environmental laws and regulations. To achieve zero major environmental violations and zero major environmental administrative
penalties during the reporting period the Company maintains a strong compliance record and stable operational status.Relevant laws regulations
and standards
Investigation of
environmental Determination
Activities products and services factors in related Environmental of significant Indicator
activities and impact evaluation environmental
processes factors
Requirements of interested parties
Primary monitoring and Approval of significant List of significant
measurement points environmental factors environmental factors
During the reporting period Number of environmental Number of major leakage incidents
By combining routine safety inspections with online monitoring of key pollutant-discharging processes the Company dynamically complaints
monitors potential environmental risks and promptly rectifies any identified issues. This approach enables early risk identification early None
warning and early response effectively reducing the probability of environmental emergencies. The Company regularly organizes Major or larger environmental 0 times/year incidents 0 times/year
emergency drills for environmental incidents. In 2025 multiple drills were conducted establishing emergency response capacity building incidents
as a long-term mechanism. Through continuous drills the Company optimizes processes enhances collaborative efficiency and
strengthens its ability to respond to environmental risk incidents.
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Clean technology opportunities
Industry-leading resource recycling efficiency through full-process energy-saving technological upgrades: completed equipment retrofits
Against the backdrop of green and low-carbon transformation clean technology innovation has become a key driver for high-quality for emulsion recovery and regeneration and iron scrap briquetting and dewatering resulting in a 60% reduction in waste emulsion
development in manufacturing. Jack Technology focuses on three strategic directions: carbon reduction technology R&D green generation and 100% recycling of machining iron scraps (1350.89 tonnes reused annually); implemented energy efficiency optimization
material substitution and green product design. The Company continuously advances process upgrades and product innovation across all production equipment series leading to a continuous decline in energy consumption per unit of product and achieving closed-
embedding clean technology principles throughout the entire lifecycle of R&D manufacturing and supply chain management—reducing loop resource utilization of production waste.environmental impact while enhancing product competitiveness and added value.Green material substitution and application innovation
Carbon reduction technology R&D and clean production
upgrades The Company continuously promotes green material substitution and product structure optimization reducing environmental impact at
the stages of material selection and structural design.Guided by clean production principles the Company continuously optimizes its manufacturing processes to synergistically advance
pollution reduction and energy efficiency improvement.Application of renewable and eco-friendly auxiliary materials
Green upgrade of coating processes
For components such as machine casings and panels the Company is gradually increasing the use of recycled metals
To reduce volatile organic compound (VOC) emissions the Company retrofitted its retained exhaust gas treatment facilities and bio-based plastics to reduce reliance on virgin resources. It has also fully phased out lubricants and cleaning agents
upgrading traditional activated carbon adsorption units to a regenerable granular activated carbon system. This reduces both containing hazardous substances ensuring compliance with REACH and other relevant regulations thereby enhancing product
VOC emission intensity and the generation of spent activated carbon as hazardous waste. Through synergistic optimization of environmental compliance and international market adaptability.end-of-pipe treatment the Company has achieved dual improvements in pollution reduction and resource conservation.Lightweight and long-lasting durable design
Through structural optimization and material innovation the Company reduces the weight of moving parts in equipment to lower
operational energy consumption. Simultaneously it enhances the wear resistance and reliability of core components extending
equipment lifespan and minimizing end-of-life disposal and resource waste at the source—synergistically advancing energy
conservation consumption reduction and circular utilization.Green product innovation and upgraded design philosophy
Upgraded activated carbon adsorption units to regenerable activated carbon systems Jack Technology integrates green design principles from the earliest R&D stage incorporating environmental impact into full product
life cycle management and holistically considering energy and resource consumption across production use and end-of-life recycling
Large-scale deployment of photovoltaic and energy storage systems to phases during initial planning and design.build a high-proportion clean energy supply system
The Company continuously refines its green design approach through digitalization decarbonization lightweighting circularity
To accelerate the green transition of its energy mix the Company has implemented large-scale green energy infrastructure modularization and integration. For example in intelligent sewing technology it applies Internet of Things (IoT) intelligent control
including a photovoltaic power station with a total installed capacity of 13.93 MW and a supporting 4000 kW energy storage sensors and vision recognition systems to sewing machinery transforming traditional equipment into automated sewing units and
system raising its clean electricity usage share to 11.6%. In 2025 the facility generated 17501500 kWh of electricity annually leading the industry's intelligent evolution.equivalent to reducing CO2 emissions by approximately 14500 tonnes. The Company has comprehensively established a stable
and efficient green power supply system laying a solid infrastructural foundation for achieving its energy conservation and carbon
reduction goals.Digitalized energy Digitalized pollution IoT-based energy
monitoring monitoring monitoring In core component innovation the Company has
developed built-in shell-less motors and clean sewing
technology optimizing operational efficiency through
IoT integration. Following implementation product
operational energy consumption has decreased by over
Photovoltaic facility Linhai Jiaojiang energy in the industrial storage facility 30% compared to conventional equipment and thread
cluster photovoltaic facility usage in sewing machines has been reduced by more
than 40%—enhancing customer productivity while
effectively lowering energy and material consumption.Green energy facilities
97 982025 Environmental Social and Governance (ESG) Report
Deploying AI health management and digital twin systems to drive energy efficiency and reliable production Governance
through intelligent operation and maintenance
The Company has established a climate and energy management governance system spanning decision-making management and
To enhance equipment energy efficiency and production reliability the Company has deployed an AI equipment health operational levels.management system that monitors key parameters such as energy consumption and vibration 24/7 achieving a fault prediction
accuracy rate exceeding 90%. Concurrently it implements a TPM "3+3" preventive maintenance mechanism enhanced by real-
time simulation and early warning via digital twin technology. Through this intelligent O&M system equipment failure rates have
decreased by 25% Mean Time to Repair (MTTR) has been reduced by 42.31% unplanned downtime-related energy waste has A Climate Change Strategy Committee has been established to coordinate the formulation of medium- to long-
term climate strategies and annual action plans aligned with national "Dual Carbon" targets. At the executive
been effectively curtailed and per-unit maintenance costs have dropped by 16.7%. Currently the Company's overall equipment management level a "Dual Carbon and Green Development Leadership Committee" chaired by EMT members
automation rate stands at 38% with a strategic target of achieving 80% automation coverage by 2030 through continuous Board of oversees the overall deployment and resource coordination of climate and energy management. A dedicated office
intelligent upgrades—systematically advancing energy efficiency and low-carbon operations across production processes. Directors supports this committee with daily supervision progress tracking and performance evaluation. Each business unit
Level and manufacturing base is assigned Dual Carbon Management Specialists responsible for implementing energy
management and low-carbon measures on the ground. Additionally an Energy Utilization Management Committee
has been formed guided by the core goals of energy efficiency enhancement and green transformation to
comprehensively coordinate corporate energy management affairs.The Company continuously refines its energy and carbon management standards establishing an energy
consumption assessment and incentive mechanism that incorporates unit energy consumption and progress on
energy-saving projects into performance evaluations to reinforce accountability and continuous improvement. It
has formulated and implemented institutional documents including the Rules for the Implementation of Energy
Management and the Administrative Measures for Energy Metering and Statistics building a management System Level
mechanism covering energy metering statistical analysis performance evaluation and continuous improvement.Additionally through a quarterly review mechanism the Company systematically assesses the implementation
progress of the Three-Year General Plan for Dual Carbon Work to ensure goals are backed by clear pathways
actions are effectively executed and responsibilities are traceable.Organizational structure of the Climate Change Strategy Committee
Chairman
Supervision
Risk assessment Business coordination Departmental implementation
Environmental
analysis Data analysis
Supply chain
optimization Process optimization
Factory in the
industrial cluster Jiaojiang Factory
AI equipment health management system Equipment Management optimization optimization Xiachen Factory
Motor and Electronic
Control System Factory
Special Machines
Factory Foundry
Addressing climate change Smart Sewing Hanger System Factory Factory
Jack Cutting Bed Parts Factory
Against the backdrop of global climate change energy mix adjustment and low-carbon transition have become critical priorities for Factory
manufacturing enterprises pursuing high-quality development. The Company actively responds to China's national "Dual Carbon"
Anhui Jieyu Factory Jiehui Factory
strategy deeply integrating energy management with climate action. It systematically advances climate initiatives by strengthening
governance frameworks mapping emission reduction pathways enabling value chain-wide collaborative decarbonization and leveraging Jiangxi Jack Zhejiang Dingniu
digital empowerment—continuously enhancing energy efficiency and carbon management capabilities to drive its transformation toward Intelligent Intelligent Manufacturing
a green low-carbon and sustainable business model. Co. Ltd.
99 1002025 Environmental Social and Governance (ESG) Report
Strategy Impact risk and opportunity management
The Company actively responds to the national "Dual Carbon" strategy adhering to the development principles of "Green-Driven The Company systematically identifies climate-related risks and opportunities across procurement manufacturing and process domains
Innovation-Led and Collaborative Progress." It deeply integrates climate change considerations with technological innovation lean integrating them into daily operational decision-making.management supply chain collaboration and digital transformation—continuously optimizing its energy mix improving resource
utilization efficiency and strengthening carbon emission control awareness across the entire value chain. Management dimension Key risk response direction Value creation direction
Building on a clearly defined climate strategy the Company will further systematically identify potential impacts of climate change and
integrate associated risks and opportunities into its business decision-making and management evaluation systems. By analyzing
dimensions including policy environment market trends technological shifts and physical climate changes the Company continuously Control energy consumption Enhance operational efficiency
strengthens its forward-looking judgment and dynamic response capabilities enhancing strategic resilience and transformation costs and policy risks and profit margins
Manufacturing energy
adaptability. efficiency management
Risk inventory
Reduce structural carbon Drive technological upgrades
emission pressure and enhance product value
Risk type Risk description Response measures Process structure optimization
Continuous advancement of the national "Dual
Proactively implement energy-saving retrofits and optimize
Carbon" policy leads to increasingly stringent
Policy and regulatory risks energy mix; enhance carbon emission data management
energy consumption controls carbon emission Reduce indirect emissions Enhance green competitiveness of
systems; and strengthen compliance monitoring
constraints and rising emission standards and compliance risks the industrial chain
Downstream customers are placing growing Advance green product R&D and energy-saving technology Supply chain collaboration
Market risks demands for low-carbon products green supply adoption; enhance carbon data transparency and product
chains and carbon disclosure environmental attributes
Rapid advancement of low-carbon technologies Implement energy-saving retrofits and intelligent upgrades
Technology iteration risks may render high-energy-consuming equipment for equipment; continuously pursue green process Energy efficiency improvement and lean integration in manufacturing
obsolete innovation
Inadequate carbon management capabilities
Promote supplier green transformation incorporate In manufacturing the Company treats energy efficiency as a critical lever for managing operational risk and optimizing costs. Through
among upstream suppl iers may increase
Supply chain risks environmental management metrics and implement
Scope 3 emissions and cause supply stability its Green Lean Improvement Program it deeply embeds energy conservation principles throughout the entire production management
collaborative energy consumption data management
fluctuations process.Extreme climate events may disrupt production Enhance emergency response mechanisms and strengthen Focusing on the high energy consumption of machining equipment the Company is upgrading to energy-efficient and environmentally
Physical risks
operations logistics and energy supply stability energy security and production resilience friendly models while simultaneously promoting resource optimization solutions such as cutting fluid recycling—achieving synergistic
gains in emission reduction and cost savings. By developing an innovative digital energy-saving system that uses AI algorithms to
dynamically adjust operating parameters of key equipment like casting furnaces the Company ensures minimum energy consumption
List of opportunities while meeting quality requirements transitioning energy efficiency management from experience-based to data-driven decision-making.To ensure effective implementation of energy-saving targets the Company integrates energy efficiency into the performance appraisal
Opportunity type Opportunity description Response measures system for manufacturing employees and managers setting key indicators such as "comprehensive energy consumption per unit of
product" and "departmental energy budget achievement rate" linked to performance bonuses and career incentives. This creates a top-
Opportunities in green Growing market demand for energy-efficient and Increase investment in green product R&D; strengthen down accountability cascade strengthening the organization's intrinsic motivation for energy conservation.product development low-carbon equipment energy efficiency design and life cycle management
Opportunities in Expand ing app l ica t ion po ten t ia l fo r A I - Promote deep integration of digitalization and green
driven energy optimization and digital energy
technological innovation manufacturing to enhance refined energy managementmanagement technologies
Cost optimization Long-term cost savings from improved energy Advance lean energy-saving improvement projects;
opportunities efficiency and resource circularity strengthen energy performance evaluation
Supply chain collaboration Establish a supply chain carbon data management Green supply chain development enhances
mechanism; implement green procurement with incentive
opportunities overall industrial chain competitiveness and constraint measures
Improved ESG performance enhances investor Improve quality of climate-related disclosures; enhance
Capital market opportunities
confidence and financing capacity transparency of climate governance
101 1022025 Environmental Social and Governance (ESG) Report
Indicators and targets
Promoting the integration of full-line automation and lean logistics to systematically enhance manufacturing Target
energy efficiency in climate change mitigation Aligned with the national "Dual Carbon" strategy and reflecting its actual energy mix and industrial development the Company has
To systematically reduce carbon emission intensity in production and set long-term climate targets: "peak carbon emission intensity before 2030 and achieve carbon neutrality before 2060." Low-carbon
proactively address climate change the Company has implemented transformation is integrated into its medium- and long-term corporate development plan for coordinated implementation. Supporting this
a manufacturing energy efficiency enhancement program centered on vision the Company has established phased quantitative management targets to ensure its climate strategy is measurable trackable
the integration of automation and lean principles. By independently and actionable.building nine fully automated unmanned production lines and Performance indicators Target description
completing automation retrofits for core processes—including motor
Digital transformation Achieve an online energy consumption data collection rate of over 95% across the four major and electronic control systems lockstitch assembly and housing factory campuses
polishing—the Company has optimized over 50% of production roles Fully automated production line for motor and
Supply chain management Complete energy consumption data collection from the top ten strategic suppliers and sign the boosting productivity by 25–40% and reducing energy consumption electronic control systems ESG Energy Consumption Data Management Agreement with them
per unit of product at the source. Meanwhile the deployment of Energy efficiency improvement Drive a continuous annual reduction of 3% in energy consumption per unit of output value
intelligent automated warehouses and AGV logistics systems has
Low-carbon development Commit to achieving a cumulative 20% reduction in carbon emission intensity per unit of product
increased storage space utilization to 85% and significantly cut energy
use in warehousing and logistics. The fusion of hard-core "machine- Note: The company calculates its GHG emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG
for-human" technological transformation and lean logistics has Protocol): Scope 1 (direct emissions) covers direct emissions from the combustion of gasoline natural gas and diesel in the company's operations. Scope
2 (indirect emissions) covers indirect emissions from the company's consumption of purchased electricity.
systematically improved energy efficiency across both manufacturing
and logistics reducing operational carbon emissions—representing a Calculation basis: Activity data is sourced from the company's energy records. Emission factors are based on official data released by national authorities
and default values from authoritative databases.key practice in the Company's low-carbon transformation and climate Unmanned polishing and grinding automated line
action within manufacturing. Key indicators
Improving energy efficiency through air compressor waste heat recovery
During the reporting period Energy use intensity Jack Technology Carbon emissions offset:
During production operations the Company conducts systematic audits and energy-saving retrofits of high-energy-consuming the Company's total energy purchased Renewable Approximately
equipment. It has implemented an air compressor waste heat recovery project that captures waste heat generated during operation consumption was Energy Certificates:
to heat water for production and domestic use—enabling cascaded energy utilization and replacing conventional electric heating. 0.034
This meets hot water demand without additional energy input effectively reducing energy waste and carbon emissions. For 1765.95
example with two 55 kW air compressors the project saves approximately RMB 430000 in annual energy costs demonstrating 22684.78 3291 tonnes of CO2 equivalent
the Company's successful integration of technological innovation to drive energy conservation emission reduction and low-carbon
transformation—balancing economic and environmental benefits.GHG emissions
Item 2025 Unit
Scope 1 2574407.92 Tonnes of CO2 equivalent
Collaborative carbon reduction mechanism for green supply chains
Scope 1 84900.61(excluding Renewable Energy Certificate offsets) Tonnes of CO2 equivalent
Scope 3 – Category 6: 2419.10 Tonnes of CO equivalent
To address indirect emission and compliance risks across the supply chain the Company has launched a Green Supply Chain 2
Transformation Program guided by the core principles of "Decarbonization Circularity Compliance and Efficiency." Through institutional Total 2661727.63 Tonnes of CO2 equivalent
redesign and incentive-constraint mechanisms it systematically elevates the sustainability performance of its supply chain.Note: The Company calculates its GHG emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG
At the supplier onboarding stage the Company strengthens green threshold management conducting on-site audits and document Protocol): Scope 1 (direct emissions) covers direct emissions from the combustion of gasoline and diesel in the Company's operations. Scope 2 (indirect
emissions) covers indirect emissions from the Company's consumption of purchased electricity. GHG emissions (Scope 3) are indirect GHG emissions
reviews with focus on energy-efficient equipment waste handling capabilities and green process maturity—making environmental that occur in the Company's value chain. This year we calculated the GHG emissions from employee business travel under Scope 3 Category 6 including
management capability a key evaluation criterion. During collaboration green metrics are integrated into regular audits with non- flights high-speed rail cars and hotel stays.conformities assigned rectification deadlines and subject to follow-up verification establishing a dynamic improvement mechanism. Calculation basis: Activity data is sourced from the Company's energy records. Emission factors are based on official data released by national authorities
and default values from authoritative databases.Simultaneously the Company has established a tiered classification and incentive system: suppliers with outstanding green performance
receive preferential treatment in procurement allocation payment terms and green certification support; underperforming suppliers
trigger a warning mechanism with partnerships terminated per regulations if remediation fails. Through this dual "incentive + constraint" Pollution emission control
approach the Company progressively increases environmental management system coverage among core suppliers enhancing the
In manufacturing standardized management of exhaust gas wastewater and solid waste is fundamental to achieving green operations.supply chain's collective decarbonization capacity.Jack Technology adheres to a combined approach of source control and full-process management integrating pollution emission
control into daily operational systems. Through institutional development technological upgrades and resource circularity the Company
continuously enhances pollution prevention capabilities reduces environmental impact and drives the transformation of production
methods toward cleaner more refined and circular models.
103 1042025 Environmental Social and Governance (ESG) Report
Governance Impact risk and opportunity management
The Company has established an environmental management structure for pollution control characterized by "corporate coordination By improving design using clean energy and materials and adopting advanced processes and equipment the Company reduces or
factory implementation and specialist accountability." At the corporate level the Safety and Environmental Management Department prevents pollutant generation and emissions during production. Employees demonstrating outstanding performance in pollution control
oversees the formulation of pollution prevention targets system development and supervision. Each subsidiary factory is equipped with and emission reduction are rewarded. The Company continuously standardizes information reporting procedures and emergency
Environmental Management Specialists responsible for daily emission management ledger maintenance compliance reporting and on- response protocols for sudden environmental incidents to prevent accidents and enhance pollution emission governance.site inspections with environmental targets integrated into performance evaluations to ensure role- and person-specific accountability.At the institutional level the Company strictly complies with laws including the Environmental Protection Law of the People's Republic
of China and the Cleaner Production Promotion Law of the People's Republic of China. It has formulated and implemented internal Wastewater treatment
policies—the On-site Environmental Management System Solid Waste Management Regulations Environmental Protection Training
Management System Management System for Environmental Pollution Accidents Management Regulations for Environmental Testing The Company implements full-process compliant management of industrial wastewater. Water meters are installed in all workshops
and Environmental Factor Identification and Evaluation Control Procedures—covering the full cycle from pollution source identification for daily consumption measurement strengthening source control. It has invested in a dedicated wastewater treatment plant and
and emission monitoring to solid waste management emergency response and continuous improvement. Institutionalized management implemented a rainwater-sewage separation system to ensure treated effluent meets discharge standards. Regular testing and ledger
controls environmental risks at the source and ensures standardized compliant operation of pollution emission control. management enable continuous tracking of water quality indicators minimizing environmental impact. Concurrently the Company
optimizes processes to reduce water use in high-pollution operations and increase recycled water ratios lowering treatment load and
Strategy operational risk.The Company adheres to the pollution prevention philosophy of "source prevention process control end-of-pipe treatment and
continuous improvement" integrating emission control into the entire production and operations lifecycle. Through synergistic Waste gas treatment
advancement of technological upgrades and lean management it drives green production transformation. In alignment with national
"Dual Carbon" and pollution reduction policies the Company continuously enhances its environmental protection infrastructure and The Company standardizes the management of waste gas generated from production workshops across all its factories introducing
strengthens compliant operations and resource circularity capabilities. advanced treatment equipment and optimizing control processes to comprehensively enhance waste gas treatment capabilities.Risk inventory
VOCs treatment and activated carbon regeneration upgrade practices
Risk type Risk description Response measures
Stricter emission standards or enhanced To strengthen control over emissions of volatile organic compounds (VOCs) and other pollutants the Company has systematically
Continuously monitor regulatory developments and
Compliance risks regulatory oversight may increase rectification
proactively upgrade facilities and technologies optimized its waste gas treatment facilities. During the reporting period it established a regular inspection and maintenance
costs or administrative penalty risks mechanism for waste gas discharge outlets and commissioned third-party environmental monitoring agencies to conduct periodic
Abnormal operation or inadequate management
Establish inspection and third-party monitoring mechanisms; testing and track results ensuring stable and compliant emissions.Operational risks of environmental faci l i t ies may resul t in
strengthen specialist performance evaluations
exceedances In end-of-pipe treatment upgrades the Company replaced its original activated carbon adsorption units with a regenerable granular
Rising hazardous waste disposal costs increase Promote waste minimization and recycling; optimize waste activated carbon system. By enhancing adsorption efficiency and regeneration capacity it reduced VOCs emissions at the source
Cost risks
operational expenses classification management while decreasing the generation of spent activated carbon as hazardous waste. This project achieved synergistic progress in
pollution reduction and resource conservation providing a replicable model for future waste gas treatment technology upgrades.Environmental incidents may damage brand Improve emergency response plans and information
Reputational risks
reputation and customer relationships reporting procedures; enhance employee training
Measures to reduce waste gas pollutant emissions
List of opportunities
Conduct regular inspections and maintenance of waste gas discharge outlets; commission environmental monitoring agencies for
Opportunity type Opportunity description Response measures
testing and track monitoring results to ensure compliant emissions. All activated carbon adsorption units have been upgraded to
Technological upgrade Improve resource uti l ization efficiency by regenerable granular activated carbon systems reducing VOC emissions and hazardous waste activated carbon generation at the Increase investment in environmental technology retrofits;
introducing advanced environmental protection
opportunities promote clean production source.equipment
Cost optimization Reduce raw mate r ia l consumpt ion and Promote recycling and regeneration of waste cutting fluids
opportunities hazardous waste generation through recycling and activated carbon Waste management
Market competition Strong environmental performance enhances Strengthen ESG disclosure and participate in green supply Waste generated during our operations is categorized into hazardous waste and general solid waste. Hazardous waste primarily
opportunities customer trust and brand competitiveness chain initiatives includes emulsions sludge tank residues and waste oil which are centrally treated by qualified third-party professional disposal
agencies. General solid waste mainly comprises waste sand iron powder and ash which are either reused according to their properties
Alignment with green manufacturing trends Actively apply for Green Factory designation and related
Policy support opportunities (e.g. iron powder is reused by our subsidiary Zhejiang Jack Intelligent Sewing Technology Co. Ltd.) or sold to waste recycling
creates eligibility for policy support certifications companies for processing.
105 1062025 Environmental Social and Governance (ESG) Report
Hazardous solid waste management process
Indicator
Hazardous Hazardous Hazardous
waste waste waste
storage transportation disposal During the reporting period
In strict compliance with national and Safe and compliant transportation The Company collaborates with
regulatory requirements hazardous methods are employed to prevent qualified third parties and signs
waste storage warehouses have leakage dur ing hazardous hazardous waste disposal contracts Hazardous waste compliant Compliant disposal rate for general Wastewater discharge non-
been established at each factory to waste transport further reducing to ensure compliant treatment. disposal rate industrial solid waste compliance incidents
ensure safe storage and minimize environmental impact. 100% 100% 0 times/yearenvironmental impact.Practices in recycling and reduction of production auxiliary materials
Atmospheric emissions non- Noise level exceedances
Aligned with its hazardous waste minimization goals the Company continues to advance recycling and reuse of production compliance incidents
auxiliary materials. In 2025 it implemented source-level circular filtration and reuse for waste cutting fluids and emulsions. By
optimizing filtration processes and circulation system management it extended fluid service life and reduced waste generation 0 times/year 0times/year
achieving an approximate 20% annual reduction in cutting fluid waste during the reporting period. Concurrently Jack Intelligent
adopted regenerable granular activated carbon enhancing recycling efficiency and saving 8 tonnes of activated carbon in 2025.These initiatives not only alleviate hazardous waste disposal pressure and lower operational costs but also improve resource
utilization efficiency further advancing the Company's clean production and circular utilization system.Indicators and targets Resource recycling
Target
Guided by requirements for resource conservation and high-efficiency utilization the Company integrates circularity principles
throughout its production and operations. Through measures such as process optimization enhanced material utilization and classified
The Company sets annual management targets centered on pollution reduction and resource recycling continuously improving waste management with resource recovery it continuously reduces resource consumption and waste generation. By synergizing
wastewater waste gas and solid waste management. It maintains a 100% pollutant discharge compliance rate and a 100% compliant institutional standards and technological improvements the Company steadily enhances resource efficiency and transitions its
waste disposal rate while progressively reducing pollutant generation intensity per unit of product and hazardous waste volume. production model toward conservation and circularity.Governance
Jack Technology has established a systematic management framework and institutional system for water resource management and
circular economy development. The Company formed a Water Resources Utilization Management Committee with the core goal of
sustainable water use coordinating production water optimization water-saving retrofits and wastewater reuse and recycling projects to
create a refined full-process management system covering planning implementation and supervision.The Company has set a target to maintain a
100% At the institutional level the Company continuously refines its management rules based on the Management Regulations for Rational 100% compliant waste pollutant discharge compliance rate Use of Water detailing standards for production and domestic water consumption and strengthening requirements for scenarios like
dormitory use to foster employee water conservation awareness and habits. Simultaneously it embeds circular resource principles into
procurement production equipment upgrades and lean management establishing a closed-loop mechanism of "source reduction—
process optimization—end-of-pipe recovery—regeneration and reuse."
107 1082025 Environmental Social and Governance (ESG) Report
List of opportunities
Organizational structure of the Water Resources Utilization Management Committee Opportunity type Opportunity description Response measures
Chairman Cost optimization Reducing operational costs through energy Promote green retrofitting and automated upgrades of
opportunities conservation and consumption reduction equipment
Supervision Technological upgrade Innovative processes like waterless cleaning Pilot dry ice cleaning and high-pressure micro-mist cleaning
opportunities enhance industry competitiveness technologies
Water resource management Business coordination Departmental implementation Supply chain collaboration Green supplier access standards enhance the Strengthen SRM system management and low-carbon
opportunities overall sustainability of the supply chain audits
Environmental Supply chain Factory in the Circular economy practices improve ESG Continuous information disclosure and demonstration of Data analysis Process optimization Jiaojiang Factory Brand value opportunitiesanalysis optimization industrial cluster performance and customer recognition results
Equipment Management Xiachen Factory Motor and Electronic optimization optimization Control System Factory
Special Machines
Factory Foundry Impact risk and opportunity management
Smart Sewing Hanger System
Factory Factory
In response to identified risks and opportunities the Company adheres to systems thinking and full life-cycle management integrating
Jack Cutting Bed Parts Factory resource circularity into core production and operational agendas. It has established a cross-departmental collaboration mechanism to Factory
systematically advance resource recycling through three pillars: efficient water use circular optimization of production processes and
collaborative supply chain management.Anhui Jieyu Factory Jiehui Factory
Jiangxi Jack Zhejiang Dingniu
Intelligent Intelligent Manufacturing
Co. Ltd. Water resource management
The Company adheres to the management principles of "prioritizing water conservation promoting
Strategy recycling and optimizing systems" embedding water resource management throughout production. By
optimizing processes upgrading water-saving technologies and strengthening reuse management it
Guided by the principle of "Green Innovation-Driven Development Full-Chain Circular Empowerment and Value Ecosystem Symbiosis" rless technological pathways to reduce wastewater generation at the source alleviating regional water
the Company embeds circular economy concepts across its entire value chain. Driven by dual engines of technological innovation and stress and enhancing resilience to water constraints.management upgrading it continuously enhances water resource efficiency and material recovery rates transforming its production
model toward low consumption high efficiency and robust circularity.Prioritizing
Recycling System
water
Risk inventory and reuse optimizationconservation
Risk type Risk description Response measures
Tightening regional water resources or rising Increase reuse rates and promote waterless or low-water
Water resource risks
water prices impact production costs processes
Pilot application of waterless cleaning technology
Investment in water-saving and recycling
Technology risks Phased rollout after pilot verification
technologies does not meet expected outcomes
For precision components (e.g. rotary hooks and feed dogs) requiring high cleanliness and traditionally reliant on ultrasonic
water washing the Company piloted cleaning process upgrades by introducing dry ice cleaning (CO particle blasting) and high-
Insufficient environmental capabilities of suppliers Establ ish a low-carbon suppl ier access and audit 2
Supply chain risks
affect the achievement of overall circularity goals mechanism pressure micro-mist cleaning (gas-liquid mixture) technologies to achieve waterless or near-zero-water cleaning. Through process
substitution and parameter optimization water consumption per part approaches zero virtually eliminating cleaning wastewater
Increased investment in equipment retrofitting Offset investment with energy-saving returns and improved and reducing water use and discharge risks at the source—laying a technical foundation for future scale-up.Cost risks
and system upgrades asset utilization efficiency
109 1102025 Environmental Social and Governance (ESG) Report
Circular economy Implement full-process energy-saving and resource closed-loop technological upgrades for equipment
achieving efficient recycling of production waste
Following the circular economy pathway of "source reduction process optimization resource recovery and regeneration" the Company
deeply integrates lean management with green manufacturing to enable efficient closed-loop resource conversion within the factory. It To enhance resource recycling efficiency the Company implemented systematic energy-saving and resource-oriented
also extends circularity to supply chain management through low-carbon supplier access and energy-saving audits gradually building a technological upgrades across the entire production process. Key equipment retrofits for emulsion recycling/regeneration and iron
circular development system encompassing both internal operations and external partners. scrap briquetting/dewatering reduced waste emulsion generation by 60% and achieved 100% recovery of machining iron scraps—
all reused in production totaling 1350.89 tonnes annually. Concurrently energy efficiency optimization across all production
equipment lines has driven continuous reductions in energy consumption per unit of product. These integrated measures have
effectively established closed-loop resource utilization for key production wastes significantly improving material efficiency and
Optimizing production process cycles and enhancing energy efficiency
positioning the Company's circularity performance at the industry forefront.By redesigning process routes and integrating equipment the Company consolidated manual clamping operations from three Waste emulsion generation decreased by 60%; 100% of machining iron scraps were
legacy machines into one automated press-clamping unit saving approximately 20000 kWh of electricity annually. Switching from recovered with a total of 1350.89 tonnes reused.open to enclosed processing reduced cutting fluid mist and dust emissions by about 2 tonnes per year improving workshop air
quality. Additionally eco-friendly oil filtration equipment was installed to recycle running-in white oil increasing reuse cycles and Recycled machine casings
reducing waste oil discharge by approximately 40 tonnes per year. These measures enhance machining quality stability while
delivering synergistic benefits in energy savings consumption reduction and pollution abatement.Emulsion recycling and
Recycled regeneration unit Electric furnace
emulsion
Practices in green retrofitting and resource reuse of equipment Waste emulsion Remelting in furnace
In 2025 the Company completed green retrofits of 9 legacy machines (including circuit optimization and software upgrades)
effectively reducing operational energy consumption. It plans to retrofit another 8 machines in the following year enhancing asset
utilization while reducing new equipment procurement costs. Additionally the Company uses regenerable granular activated Automatic chip
carbon in hazardous waste treatment to lower waste volume and optimized painting processes have cut waste by 50% minimizing Iron scrap briquetting removal in machining Scrap iron blocksWet iron scraps and dewatering unit
paint sludge at the source and advancing hazardous waste minimization.Green energy facilities
In packaging management the Company promotes lightweight renewable paper-based materials and has introduced returnable transit
containers reducing single-use packaging consumption and institutionalizing resource minimization and reuse.Indicators and targets
The Company has established phased targets for efficient water use and circular economy development and formed a dedicated task
force to advance its energy and resource management system.Indicator
During the reporting period the Company's total water The Company used 5955.95 tonnes of materials
consumption was 4625621 tonneswith a
for production and packaging of which
water use intensity of 7.00 tonnes/RMB 10000 3706.8
in revenue. The volume of recycled water was tonnes were renewable achieving a material recycling rate
3978944 of cubic meters achieving a recycling 95%
rate of 86%
111 1122025 Environmental Social and Governance (ESG) Report
Efficient governance operations Governance and operation-related honors
The Company strictly complies with the Company Law of the People's Republic of China the Securities Law of the People's Republic
of China the Guidelines on the Bylaws of Listed Companies and other relevant laws and regulations. It has established a governance
structure with clearly defined responsibilities and effective checks and balances continuously refining its board-centered decision-
making and oversight mechanisms. Through a robust institutional framework and specialized committee operations it ensures scientific
and independent decision-making. In information disclosure the Company strictly adheres to regulatory requirements having received
the highest rating for seven consecutive years and maintaining high transparency. Additionally through diversified communication
channels and extensive investor engagement activities it effectively communicates corporate value and fosters strong investor relations.Overall the Company's governance is standardized and efficient laying a solid foundation for sustainable development.Shareh股old东ers会' Meeting
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Ernst & Young and China Business 2025 SSE Eagle 2025 Best Practice of the Board Office of
Network 2025 A-Share Listed Gold Quality Award Listed Companies
Governance and operation Company with Outstanding Growth for Excellent Board
Potential of the Year Secretary
The Company has established a corporate governance structure comprising the Shareholders' Meeting the Board of Directors
and management featuring clear accountability mutual checks and balances and coordinated operations. The Board strictly fulfills
its duties under the Rules of Procedure for the Board of Directors executes authorizations from the Shareholders' Meeting and
implements its resolutions to protect the interests of the Company and all shareholders. By formulating the Rules of Procedure for
the Shareholders' Meeting Rules of Procedure for the Board of Directors and Working Rules for the General Manager the Company
has clarified responsibilities authorities and procedures across governance levels ensuring effective separation of decision-making
execution and supervision. The Board has four specialized committees—the Strategy and Sustainability Committee Nomination and
Remuneration Committee Audit Committee and Finance and Economics Committee—providing strong support for scientific and
efficient decision-making.
2025 Annual Outstanding 2025 Annual Best Practice 2025 EasyDong "Value 100" 2025 Annual AI
Investor Relations Award for Board Office Innovation Award
Development Award for Digital Innovation
Listed Companies
115 1162025 Environmental Social and Governance (ESG) Report
Independence of the Board of Directors
Enhancing Governance Effectiveness through an Internal and External Collaborative Training Mechanism As the Company's core decision-making body the Board is strictly accountable to the Shareholders' Meeting. Upholding independence
objectivity and prudence it rigorously complies with laws regulations and the Articles of Association diligently implements
Shareholders' Meeting resolutions and operates in a standardized manner. The Company continuously improves mechanisms
The Company places great emphasis on enhancing the professional competence of directors and senior executives establishing
for director appointments performance evaluations and procedural rules and has established a robust two-way communication
a regular learning mechanism that combines external training with internal knowledge exchange. By actively organizing
mechanism between independent directors and executive leadership reinforcing the foundation for sound decision-making. With diverse
participation in programs offered by external institutions such as the Shanghai Stock Exchange and the Listed Company
professional backgrounds and extensive industry experience the Board plays a critical supervisory and advisory role in major decisions
Association of Zhejiang and flexibly utilizing "offline + online" platforms for internal learning—including competency sharing
on strategy risk management executive compensation and related-party transactions ensuring management actions align with the
micro-courses core regulation interpretations and case studies—it systematically elevates the team's professional expertise and
best interests of the Company and all shareholders thereby providing a solid guarantee for long-term sustainable development.compliance awareness continuously strengthening overall governance effectiveness.Diversity of the Board of Directors
The Company places great emphasis on building a multi-dimensional diverse Board of Directors in terms of gender age industry
experience professional expertise and international perspective. A balanced and diverse governance structure ensures scientific
forward-looking and rational decision-making laying a solid governance foundation for the implementation of the Company’s global
Key performance strategy and long-term sustainable development. The Company strictly follows the director nomination and appointment procedures
stipulated in the Articles of Association consistently adhering to the principles of synergizing diversity with professionalism and balancing
international outlook with independence. We continuously optimize the Board’s composition to comprehensively enhance its global
vision professional competence and independent decision-making capacity.The Company’s independent directors possess profound international backgrounds and top-tier cross-border professional capabilities.As of the end of the Convened Convened Organized They bring hands-on experience in global strategic management at multinational enterprises deep expertise in the international
reporting period the industrial landscape and cross-border collaboration frameworks extensive global industry resources and significant international
Company held 10 12 14 influence. They are also well-versed in International Financial Reporting Standards (IFRS) and global capital market governance norms. Board meetings Special ized Board director training
Committee meetings sessions They provide the Board with a global perspective and authoritative professional support enabling the Company to accurately capture 3 global industry trends efficiently advance its global footprint and cross-border governance and deliver robust assurance for high-quality Shareholders' Meetings
Reviewed and Reviewed and sustainable development.approved approved
Achieved a director The Company’s executive director team is a core force that combines strategic acumen with executional resilience. Its members bring Reviewed and
48 35 training coverage rate of extensive hands-on experience in critical domains including strategy marketing R&D manufacturing human resources and finance approved proposals proposals and are all "proven winners" in their respective fields. The team not only anchors industry trends with foresight to precisely chart the
100% Company’s long-term direction but also drives strategic execution with high efficiency establishing a solid foundation for steady growth 16proposals and continuous innovation.
Heard Heard
During the reporting period
Heard 48reports 35reports During the reporting period Including Accounting for
16 the Board of Directors reports consisted of
Board member
independent directors %
attendance rate: 9 3 33directors
100% 2 Accounting forfemale directors 22%
Effectiveness of the Board of Directors Information disclosure
The Company strictly complies with the Company Law of the People's Republic of China the Securities Law of the People's Republic of
As the core decision-making body the Company's Board of Directors strictly adheres to the Company Law of the People's Republic China the Administrative Measures for Information Disclosure by Listed Companies and relevant rules of the Shanghai Stock Exchange
of China the Securities Law of the People's Republic of China and other applicable laws and regulations as well as the Articles of (SSE). In alignment with its Articles of Association it has formulated the Information Disclosure Management System to standardize
Association. It has established and continuously updates a comprehensive governance system. The Board fulfills its rigorous oversight disclosure practices properly fulfill its disclosure obligations and effectively protect the legitimate rights and interests of the Company
duties through effective annual internal control evaluations internal and external audit validations and necessary third-party attestations. shareholders creditors and other stakeholders. To ensure effective implementation the Company has established a comprehensive
The Company continuously refines mechanisms for director appointments performance evaluations and meeting procedures and has management system covering standard setting data collection review procedures and internal and external communication and
established a two-way communication channel for independent directors laying a solid foundation for the Board's scientific rational and training. Through continuous training for relevant departments and key personnel it reinforces the standardization and consistency of
efficient performance. information dissemination ensuring rigor and compliance in all disclosure activities.
117 1182025 Environmental Social and Governance (ESG) Report
Key honors Clearly communicating strategic blueprints and boosting investor confidence
During the reporting period the Company received a Grade A rating for information disclosure from the In June 2025 the Company held an investor engagement event at its Hangzhou headquarters attracting nearly 100 investors
Shanghai Stock Exchange for the seventh consecutive year. for in-depth dialogues with the founder Board Secretary and core management team. The event comprehensively presented
the Company's operational resilience and financial performance with emphasis on three strategic growth pillars: deepening
Intelligent Total Solutions incubating new AI-powered product categories and advancing its humanoid robot strategic layout.Candid exchanges and site visits effectively strengthened investor confidence in the Company's future strategy and sustainable
growth capabilities.Key performance
During the reporting period the Company Including And
disclosed a total of
162 4periodic reports 84ad-hoc announcementsdocuments
Investor communication
The Company places high importance on investor relations management standardizing investor engagement processes and Nearly 100 investors visit Jack to dialogue with the founder
maintaining strong relationships. It actively receives investor inquiries through multiple channels including its corporate website email
dedicated hotline and the SSE E-Interactive platform. The Company regularly holds earnings calls to address investor concerns and
promotes its core value proposition to institutional investors through reverse roadshows and strategy conferences enhancing its capital Key performance
market profile. Additionally it organizes on-site investor visits to increase engagement and further strengthen corporate governance.During the reporting period communication activities with various types of investors included:
2025 investor day—Fostering mutual trust and strategic transparency 3earnings calls 9 large-scale exchange events 63institutional
investor researches
In April 2025 the Company hosted its
annual Investor Day at its Jiaojiang
headquar ters a t tended by senior
execut ives inc luding the Rotat ing 16themed strategy 1on-site reception day event 800+investors
CEO Board Secretary and CFO. They conferences covered
provided a comprehensive overview of
the Company's operational performance
blockbuster strategy and future plans for
digitalization and AI-driven automation
and engaged in in-depth discussions with
investors on topics such as overseas Tax management
expansion and technology R&D. Open The Company places great importance on tax management and strictly complies
dialogue and on-site tours significantly with tax laws and regulations. By establishing and improving its internal tax control
enhanced investor understanding and
Investors visiting Jack for tours and discussions system optimizing tax planning and organizing specialized training and competitions it confidence. systematically enhances compliance capabilities and risk prevention effectively ensuring
lawful tax payment and supporting stable business development.
119 1202025 Environmental Social and Governance (ESG) Report
Tax management principles Strengthening risk and internal control
The Company strictly complies with national tax laws pays taxes honestly and lawfully and has been The Company continuously refines the top-level design of its compliance management by comprehensively reviewing and systematically revising core
rated a Grade A taxpayer annually. It actively fulfills its withholding and remittance obligations and has
Tax compliance governance documents such as the Audit Committee Working Rules and Independent Directors' Working Rules. Regarding risk and internal control it
no record of concealment omission or tax evasion. The Company annually engages a professional has built a dynamic and adaptive management system that continuously identifies risks and optimizes processes in response to strategic and business
accounting firm to conduct audits on specific tax matters. changes. Effectiveness is ensured through manual development system extension across units regular audits and corrective action follow-up. Additionally
the Company has launched a three-year internal control supervision and evaluation plan covering all subsidiaries and introduced external audit mechanisms
to systematically identify and address risks safeguarding long-term stable operations.The Company adheres to the OECD/G20 Base Erosion and Profit Shifting (BEPS) principles and engages
Tax transparency qualified third parties to conduct related-party transfer pricing analyses and international Two-Pillar tax Operational front-end: Back-end audit: Inspection and
safe harbor assessments issuing formal reports to ensure compliance with international tax obligations. Self-inspection and self-control Third line of defense Second line of defense rectification
As the front line business
Audit and The Audit Department conducts
departments must proactively identify inspection independent inspections identifies
assess and self-audit risks clarify
The Company has an internal tax risk management process and a dedicated invoice review position issues oversees rectification
Tax management their risk control responsibilities and and accountability and tracks to ensure invoice compliance and business reasonableness. It has also developed a tax risk map to
system and ensure operations remain within safe implementation to ensure effective proactively mitigate risks across all tax types and enhance employee tax compliance awareness through
internal boundaries. Financial monitoring execution of risk control measures.daily policy updates and training.End-to-end closed-loop system:
Mid-office monitoring: Compliance
The Company has established a Tax Department Legal Department and Audit Department. The Tax Enhancing resiliencesupervision Through business-level prevention
Director Legal Director and Audit Director respectively verify standardize and supervise tax compliance The Finance Department supervises
Organizational mid-office monitoring and audit legal compliance process compliance and business authenticity. Through integrated coordination among business processes strictly enforces Operational self-regulation
structure and oversight a closed-loop "Prevent–business finance tax legal and audit functions ("five-linkage mechanism") the Company conducts rules and approval protocols Monitor–Inspect" system is formed
regular and ad hoc monthly compliance reviews of taxes vouchers contracts and processes. prevents non-compliance and First line of enhancing the Company's risk
reduces enterprise risk. defense response resilience.Organizational structure of internal control system
trengthening tax compliance training to build the foundation for sound business operations Risk and internal control management philosophy and measures
The Company has established a systematic and dynamically refined risk and internal control management system covering financial compliance information
The Company closely follows the latest policy developments from the State Taxation Administration (SAT) focusing on key VAT disclosure compliance HR compliance intellectual property compliance data security compliance ESG compliance and supply chain compliance.practical issues. It systematically delivers multi-tiered organization-wide tax compliance training. Sessions include in-depth Guided by a philosophy aligned with strategic and business dynamics it continuously identifies key control points updates risk inventories and achieves
discussions on policy changes and practical challenges in six core areas: deemed sales non-deductible items mixed sales tax closed-loop management through policy revisions and an enterprise-wide proposal mechanism. Operationally it strengthens its foundation by compiling
thresholds simplified taxation and differential taxation. Specialized programs such as Interpretation of Core Provisions of the internal control manuals extending the system to all business units optimizing critical processes identifying overseas risk exposures and refining the
control matrix. Supported by regular internal and external audits and evaluations the Company promptly identifies issues and drives remediation ensuring
New Value-Added Tax Law and Analysis of Hot Issues and Enterprise-Wide Tax Compliance Risk Response comprehensively continuous enhancement of risk management capability and internal control effectiveness.outline compliance management essentials for all tax types providing a solid foundation for compliant and sustainable operations.Compliance management (examples)
The Company has established a unified and comprehensive supplier management system. Through digital process
Supply chain enablement it conducts compliance reviews at critical stages—including supplier due diligence onboarding material
Key performance compliance certification evaluation coaching on-site audits and exit—and employs professional tools for cross-screening. Key
suppliers
During the reporting period the Organized Maintained a record of In accordance with the Contract Management System the Company has designated the Legal Department as the
1 0 central unit for contract management and dispute resolution responsible for standardized template drafting contract Company organized tax knowledge contest tax disputes throughout the Legal compliance review and execution performance monitoring and dispute handling. It collaborates with Finance business units
15 year and others to jointly reinforce the risk control perimeter and ensure precise efficient legal compliance tax training sessions
Awarded the qualifications of "Tax Class A Enterprise" and "Model Export Tax Enterprise". The Company has issued the Compliance Management System comprehensively covering key areas including Operational trade secrets anti-corruption and anti-bribery anti-monopoly anti-money laundering export controls environmental
compliance
protection data and cybersecurity labor and employment and market
121 1222025 Environmental Social and Governance (ESG) Report
Risk and internal control philosophy Risk and compliance management training
Each year following the release of its annual report the Company systematically reviews and updates its internal control systems and The Company deepens its compliance culture top-down by combining executive advocacy with diverse internal communications. It also
processes. Informed by dynamics in strategic positioning business expansion product innovation functional reorganization and cost actively collaborates with external professional resources such as bar associations and law societies to deliver systematic practice-
optimization it continuously identifies key control points across operations establishes and iteratively refreshes its risk inventory and oriented legal compliance training to all employees effectively enhancing their risk awareness and business compliance capabilities.implements targeted revisions to policies and procedures—thereby strengthening risk management and supporting sustainable healthy
growth. Additionally through its "Proposal" platform the Company actively encourages employees to surface potential risks or suggest
internal control improvements fostering a continuously refined management loop.Combining executive advocacy with multi-channel communication to embed compliance culture
Risk and internal control measures Through founder-authored management logs flag-raising speeches by executives and other top-leadership communications the Company deeply articulates the value of compliance to all employees sending clear signals. It systematically leverages internal
publications new media platforms specialized training and meetings for sustained education. This dual approach of "top-down
The Company ensures effective implementation of compliance requirements by assigning dedicated personnel and delivering stratified advocacy" and "multi-dimensional penetration" effectively fosters a compliance-conscious culture and strengthens enterprise-wide
role-based training. It emphasizes a compliance culture centered on integrity viewing compliance as the cornerstone of value creation awareness and behavioral discipline.and clearly stipulates that business expansion must prioritize adherence to compliance baselines. Through combined top-down
advocacy multi-channel communication and collaboration with external experts for training it systematically enhances enterprise-wide
compliance awareness and risk prevention capabilities fortifying its compliance defense.Collaborating with external experts to deliver legal training and enhance enterprise-wide compliance capabilities and risk awareness
Risk identification and response measures
The Company highly prioritizes legal compliance capability building. By actively engaging with external institutions like the Taizhou
Risk Identification for 2025 Risk response measures Lawyers Association and Taizhou Law Society and regularly delivering targeted training to all employees and business staff it
covers practical dimensions including policy requirements contract clause interpretation risk identification and case studies—
A global economic slowdown or regional Deepen market operations and value systematically strengthening legal literacy and risk awareness and effectively reinforcing the compliance firewall for business
downturn may contract overall market innovation by transitioning from standalone operations.demand sh i f t i ng en te rp r i ses f r om product sales to an integrated "product
" i nc remen ta l compe t i t i on " t o more + serv ice + so lu t ion" va lue model .intense "zero-sum competition." Rapid Fully implement lean management to
commercialization of disruptive technologies enhance operational efficiency through
(e.g. AI big data new energy) continuously Market supply chain collaboration production
spawns new models and formats potentially competition risk process optimization and digital tool Risk and internal control management goals
eroding or overturning traditional competitive adoption. Proactively invest in applied
advantages in the short term. research on disruptive technologies like
The Company has established a three-year (2025–2027) special plan for internal control supervision and evaluation ensuring all
artificial intelligence. Establish strategic
subsidiaries—including tier-three entities—undergo a comprehensive assessment within this period. It has also engaged an independent
partnerships with universities research
external auditor to perform internal control audits and issue corresponding Internal Control Audit Reports. Through systematic risk
institutes and innovation partners across
identification and integrated analysis the Company has promptly developed targeted response measures to safeguard sustained stable
the value chain leveraging joint R&D
operations.Key performance
During the reporting period the Company With And total training duration of
conducted
500 participants 30 hours9 legal compliance trainings
123 1242025 Environmental Social and Governance (ESG) Report
Strict adherence to business ethics
Governance
The Company issued the Code of Business Ethics which clearly defines compliance red lines across multiple
domains—including anti-corruption fair competition and conflict-of-interest prevention. The Code is binding on all
employees and extended to all business partners. For implementation supporting policies such as the Employee
Conduct Management System and Integrity Conduct Management System have been developed. The Employee
Handbook specifies prohibited behaviors and key roles (e.g. procurement) are subject to special integrity
requirements via Integrity Agreements. A clear tiered disciplinary mechanism—from internal sanctions to judicial
referral—has been established.The Company has established a governance and execution structure with clear roles and responsibilities. At
the oversight level the Board of Directors and its Audit Committee provide overall guidance and supervision on
business ethics. At the operational level a cross-functional collaboration mechanism involves Legal Finance HR
Marketing Procurement and others. The Audit and Legal Departments serve as dedicated units jointly managing
investigations enforcement and daily supervision—including the annual anti-fraud audit.Strategy
Risk type Risk description Response measures
By issuing and continuously refining the Code of Business Ethics the Company establishes integrity fairness and probity as non-
negotiable operational baselines—a shared code of conduct for all employees and supply chain partners. It is committed to a systematic
business ethics management framework encompassing executive oversight cross-departmental execution routine risk assessments In market competition improper
* Strictly comply with domestic and international anti-mo-
strict accountability and transparent whistleblower protection. This closed-loop system embedded in strategy operations and culture conduct—such as entering into
internalizes compliance as a competitive advantage builds a trustworthy brand and ensures long-term sustainability. monopolistic agreements or abus-
nopoly and anti-unfair competition laws incorporating
ing dominant market position— them into the Compliance Management System.may violate the Anti-Monopoly
* Uphold principles of compliance fairness and integrity
Identified business ethics-related risks Law of the People's Republic of
Unfair competition in all business activities and respect competitors' legiti-China and the Anti-Unfair Com-
and anti-monopoly mate rights.petition Law of the People's Re-
Risk type Risk description Response measures non-compliance public of China resulting in fines
risks * Strengthen enterprise-wide awareness of fair competi-litigation and severe reputational tion through internal training and cultural promotion.* Issue and enforce the Code of Business Ethics and In- damage.Employees suppliers or partners tegrity Conduct Management System.may engage in illegal acts—such
as bribery fraud or money laun- * Conduct annual anti-fraud audits to systematically inves-
dering—to seek improper gains tigate suspicious or illegal activities.Internal and external
potentially harming the Compa- * Establish diverse accessible channels (in-person
commercial bribery
ny's assets reputation and oper- letters hotlines email) and define procedures in the
and fraud risks * Obtain integrity commitment letters from 100% of em-
ational legitimacy. If whistleblowing channels are in- Integrity Conduct Management System.ployees and suppliers to clarify rights and responsibili-
accessible investigations are un-
ties. fair or whistleblower protections * Implement strict confidentiality and dedicated protec-
are inadequate internal issues tion mechanisms pledging to shield whistleblowers
Employees—particularly in criti- Internal supervision may be concealed allowing risks from unfair treatment or retaliation.cal roles like procurement—may failure and * The Code of Business Ethics explicitly requires avoid- to accumulate and potentially
cause unfair decisions resource whistleblower triggering uncontrollable crises. * Institute a whistleblower reward program to encourage
ance of conflicts of interest with detailed prohibitions in
Conflict of interest misuse or information leaks due retaliation risks fact-based internal oversight and external whistleblow-
and internal control to conflicts between personal and the Employee Handbook and other policies. ing.failure risks corporate interests.
125 1262025 Environmental Social and Governance (ESG) Report
Identified business ethics-related opportunities Impact risk and opportunity management
Opportunity type Opportunity description Response measures
Through a regular risk assessment mechanism the Company systematically identifies and reviews ethical risks in internal controls
organizational culture and key business areas. Based on findings it implements a suite of controls—including annual anti-fraud audits
* Reduce transaction and regulatory costs: Achieve multi-channel whistleblowing and tiered penalties—to manage risks effectively. Simultaneously it transforms integrity-based compliance
smoother communication better terms and lower com- into opportunities to earn internal and external trust enhance brand reputation and build a sustainable market ecosystem—turning
By building and effectively imple- business ethics into a long-term competitive advantage.pliance risk premiums in business collaborations gov-
menting a robust business ethics ernment affairs and capital markets due to a trusted
and anti-corruption system the
compliance record.Reputational capital Company conveys a "zero-toler-
ance" integrity culture earning deep Specialized training on anti-corruption and
and trust premium
trust from customers investors * Enhance brand intangible assets: Internalize "integri-
regulators and premium partners. ty-driven operations" as a core brand value to strength- In December 2025 the Company conducted mult ip le off l ine
en appeal and loyalty creating a differentiated competi- an t i - co r rup t ion and an t i -commerc ia l b r ibery t ra in ing ses-
tive edge. sions. Through in-depth face-to-face discussions combined
w i t h t he l a tes t i ndus t r y regu la t i ons and rea l -wo r l d case
* Ensure strategic decision quality: Align resource allo- s tud ies par t i c ipants ga ined a thorough unders tand ing o f
Rigorous conflict-of-interest man- cation and major decisions with the Company's holistic common commerc ia l br ibery scenar ios legal consequenc-
agement and an efficient internal es and prevent ive measures—signi f icant ly enhancing their and long-term best interests to support sustainability.control system improve decision legal r isk awareness and providing strong compl iance sup-
Excellent governance quality safeguard assets and op- port for the Company's sustained heal thy development.* Enhance operational efficiency and security: Reduce
and operational timize operations—fundamentally
resilience building organizational resilience
internal waste and financial risks from fraud unfairness
and preventing potential losses. or inefficiency ensuring stable high-performance oper-
ations.* Avoid major legal and operational risks: Prevent com-
Proactive exemplary compliance
with competition laws enables the pliance crises that could disrupt operations cause mas-
Company to engage in healthy rival- sive financial loss or trigger market access restrictions.ry within a sound fair and sustain-
Builder of a sustainable able industry ecosystem—avoiding * Lead and shape industry standards: As a responsible
market ecosystem long-term harm from cutthroat com- participant enhance influence and voice across the val-
petition and elevating its industry ue chain industry associations and regulators to foster
standing.a better business environment.* Proactive risk prevention: Use early warnings and time- Anti-corruption and anti-commercial bribery training
An open transparent secure ly interventions to stop minor issues from escalating
and protected whistleblowing and into major financial losses legal cases or reputational
oversight mechanism encourages crises—saving potential crisis response costs.Strong self-correction internal self-correction resolving
and risk early warning most ethical and compliance risks
at an early stage—building strong * Strengthen organizational cohesion: Foster a safe capabilities
organizational self-purification and fair and trustworthy workplace to enhance employee
continuous improvement capacity. belonging engagement and responsibility—helping
attract and retain top talent.
127 1282025 Environmental Social and Governance (ESG) Report
Anti-commercial bribery risk assessment Whistleblowing and complaints
To systematically identify and prevent ethical risks such as commercial bribery the Company has established a regular risk assessment To foster an open and transparent oversight environment the company maintains an open posture toward stakeholder input and views
mechanism. We strictly comply with local laws and regulations continuously revise and improve the Code of Business Ethics and use internal and external supervision as a key driver for continuous governance improvement. It has established a systematic standardized
it as the foundation for steadily advancing enterprise-wide internal compliance risk assessments—with focused periodic reviews of supervision response mechanism and formulated the Integrity Conduct Management System which clearly defines investigation
internal control effectiveness organizational culture and key ethical risk areas. procedures feedback protocols and departmental responsibilities—effectively guiding protecting and appropriately rewarding
whistleblowers to ensure timely handling of all misconduct.The Company has established a clear accountability and disciplinary mechanism. For verified violations of integrity or confidentiality
policies that cause losses internal sanctions—including financial penalties role adjustments or demotions—will be imposed based The Company actively encourages and welcomes employees suppliers customers and the public to lawfully report violations or unfair
on severity. If criminal conduct is suspected the case will be referred to judicial authorities for legal prosecution upholding a "zero- practices. Multiple whistleblowing channels are available and we are committed to maintaining strict confidentiality of whistleblower
tolerance" stance to protect a clean business environment. identities and report content ensuring protection from unfair treatment or retaliation. To incentivize truthful reporting a whistleblower
reward program offers material incentives for verified actionable leads in accordance with established policies.Business process assessment Response measures for corruption Whistleblowing or complaint channels
and bribery risks
Establish an anti-corruption
Conduct a comprehensive review of management system clari- Dedicated WeChat Email Telephone
business processes with particular fying roles authorities and
focus on high-risk areas such as standardizing critical work-
procurement sales and contract flows; Physical Oral and written feedback
execution. Analyze risk points weak- Reception Office
nesses and potential gaps to ensure Deliver integrity education
standardized transparent operations. and training to continuously
enhance employees' busi-
ness ethics and compliance
awareness; Whistleblower protection and penalties for violations
Strengthen oversight and
Internal control assessment post-review of ethical conduct
to establish a long-term gov-
Whistleblower protection Whistleblower responsibility
Systematically assess the Company's ernance mechanism. Whistleblowers must act in good faith be-
internal control mechanisms—includ- Whistleblowers are accountable for the content lieve the information to be true make no
of their reports. If a report is determined to be a
ing auditing financial management false accusations and not act for personal
false accusation or slander the individual may
abnormal behavior prevention/de- gain. The Company will protect them from face a warning dismissal or referral to judicial
tection systems and approval pro- retaliation. authorities depending on the severity of the
cesses—to evaluate whether existing case.controls are robust effective and Confidentiality discipline Prohibition of retaliation
sufficient to prevent
Personnel responsible for receiving No department or employee may
and investigating whistleblowing retaliate against a whistleblower. Vi-
must maintain strict confidentiality. olators will be subject to a warning
They are prohibited from disclosing dismissal or referral to judicial author-
the whistleblower's information or the ities.content of the whistleblowing. They
must properly secure all materials
and ensure the whistleblower's iden-
tity remains confidential. Handling of violators
Investigators who violate confidentiality rules
Reward mechanism or perform their duties unfairly will be given
Whistleblowers who have made significant contri- a warning dismissed or referred to judicial
butions will be rewarded and their personal infor- authorities depending on the severity of the
mation will not be disclosed without their consent. circumstances.
129130
Response measures for
corruption risks
Internal business
risk assessment2025 Environmental Social and Governance (ESG) Report
Anti-monopoly and fair competition Indicators and targets
The Company strictly complies with relevant domestic and international laws and regulations including the Anti-Monopoly Law of the
During the reporting period
People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China. It conducts business operations in
accordance with the Compliance Management System consistently adhering to principles of compliant fair and honest competition. It
respects and safeguards the legitimate rights and interests of competitors and is committed to maintaining a healthy and orderly market
environment and commercial order.In risk control the Company performs pre-implementation compliance assessments for major business decisions commercial During the reporting period the signing rate of Number of major incidents of
cooperation agreements and marketing activities focusing on identifying potential risks such as entering into monopolistic agreements integrity commitment letters with the Company v io la t ion o f regu la t ions and
or abusing a dominant market position. In addition it has established whistleblowing channels to encourage employees and business employees suppliers contractors and other discipline:
partners to monitor and report suspected anti-competitive conduct thereby forming a comprehensive risk prevention system. During the relevant parties was
reporting period the Company reported no incidents related to monopolistic behavior.
1000%
Specialized training on anti-monopoly and anti-unfair competition
In 2025 the Company conducted multiple training sessions on anti-monopoly and anti-unfair competition. Through detailed
explanations of the definitions and legal consequences of unfair practices—such as monopolistic agreements abuse
of dominant market position and acts of confusion—the sessions clarified legal boundaries and compliance red lines in Party building management
commercial activities. This significantly enhanced employees' awareness of fair competition compliance ensuring the
Company's operations remain firmly on a lawful and standardized path.The Company places great importance on Party building upholding
2025 party building honors
the leadership and political core role of the Party organization. By
continuously strengthening Party members' cohesion and sense
of responsibility it promotes deep integration of Party work with
business operations ensuring high-quality development through
Party-led governance. Centered on the goal of building a "Clean
Private Enterprise" the Company has systematically established a
normalized integrity mechanism emphasizing education institutional
frameworks and supervision. This includes forming an Integrity
Building Leading Group and appointing "Three Integrity Officers"
to reinforce organizational and systemic constraints. It leverages
physical platforms such as the Qingfeng Garden and Heart-to-Heart
Conversation Rooms along with media like the Jack Newspaper
and bulletin boards to deliver ongoing integrity culture education.Additionally it organizes Party members cadres managers and Taizhou's fourth batch of "Innovation Pioneers"
Anti-monopoly and anti-unfair competition training key-position employees to sign Integrity Commitment Letters among party members in non-public enterprises
and take integrity oaths and promotes the signing of Integrity
Agreements with suppliers and customers to jointly build an
integrated internal-external integrity defense line.
131 1322025 Environmental Social and Governance (ESG) Report
Promoting rural revitalization Giving back to society with compassion
The Company deeply fulfills its corporate social responsibility by empowering rural revitalization through diverse approaches. By The Company has always upheld the philanthropic principle of "giving back to society and spreading kindness" engaging
sponsoring wheat fields in Henghechen Village under an "agriculture + assistance" model it revitalizes the rural economy and enhances in social welfare through multiple dimensions. It fulfills its corporate citizenship by donating to the Charity Federation establishing
the value of specialty agricultural products. In Sertar County it implements consumption-based assistance to streamline production- education funds to support underprivileged students and providing targeted support for historical and cultural preservation.marketing linkages injecting vital momentum into local industrial development. These initiatives precisely align corporate strengths with During festivals it visits vulnerable groups at the grassroots level to deliver care. Through years of dedication it has received
rural resources—boosting farmers' incomes while reinforcing regional economic self-sufficiency. Through concrete actions the Company numerous public welfare honors reflecting its responsibility and commitment to societal contribution in the new era.paints a new picture of thriving industries and harmonious villages embodying its mission of symbiotic prosperity between enterprise
and countryside in the new era.Twenty years of donations to practice the original aspiration charity relay showing commitment
Sponsoring rice fields to promote revitalization through industrial assistance
The Company has consistently practiced the public welfare philosophy of "giving back to
society and spreading kindness" persistently advancing charitable causes. Following its
In active response to the rural revitalization initiative the Company sponsored 10 mu of rice fields in Henghechen Village
initial pledge of RMB 5 million (RMB 250000 annually) to the Jiaojiang District Charity
Xiachen supporting rural industry development through an "agriculture + assistance" model. In 2025 it invested RMB 28000 in
Federation from 2010 to 2030 it has recommitted with an additional RMB 5 million (RMB
rural revitalization combining financial support with industrial promotion to enhance local agricultural productivity and increase
250000 annually) from 2025 to 2045—including a RMB 500000 donation in 2025. These
farmers' incomes. This initiative not only invigorated the rural economy but also contributed corporate strength to common
funds are exclusively dedicated to supporting charitable development in Jiaojiang District.prosperity demonstrating its commitment to giving back to communities and society through tangible action.Through this two-decade relay of compassion the Company demonstrates profound social
responsibility and unwavering commitment to public welfare.Certificate of donation
Dual-drive of procurement and donation: Supporting Sertar's revitalization with care
The Company precisely aligned with the development needs of its paired-assistance partner Sertar County adopting a dual-
track "procurement + donation" assistance model. It procured local poverty-alleviation goods to stimulate production and sales
of specialty agricultural products and donated RMB 40000 in targeted funds to support local poverty alleviation and common
prosperity efforts. By combining the "blood transfusion" of consumption-based aid with the "blood generation" of financial
empowerment it tangibly improved public well-being and built a bridge of mutual trust between enterprise and locality through
practical action.Extending aid across a thousand miles to overcome adversity together
In response to the disaster caused by extreme rainfall in Ji'an City Jilin Province the
Company swiftly donated RMB 100000 to help affected residents overcome hardship
rebuild homes and resume production. The funds were precisely allocated to the most
urgent needs in the disaster zone delivering warmth and hope. Spanning a thousand miles
this act conveyed the spirit of mutual support and embodied corporate social responsibility
helping the region regain vitality and co-create a better future.Donation appreciation letter
135 1362025 Environmental Social and Governance (ESG) Report
Ten years of scholarships for students education for the future Millions in donations to preserve cultural heritage reviving ancient charm for generations
Focusing on educational philanthropy the Company made a targeted donation of The Company actively engages in cultural philanthropy making a targeted donation of RMB 2 million to the Jingchuan County
RMB 3 million to the Bixin Education Foundation—RMB 300000 annually over Red Cross for the construction of the Jingchuan Ancient Ruan State Historical and Cultural Pavilion. As the global research
ten years—exclusively to assist disadvantaged teachers and students and reward center for Ruan heritage the pavilion bears the vital mission of preserving the historical legacy of the Ancient Ruan State. Funds
outstanding individuals across six primary and secondary schools. This teaching- are disbursed through the Red Cross under strict protocols to ensure dedicated use and precise implementation. This donation
and-learning support fund provides long-term stable backing illuminating students' not only contributes corporate strength to cultural heritage protection but also actively safeguards historical roots and promotes
educational journeys and energizing dedicated educators. Over a decade this relay China's fine traditional culture reflecting the Company's profound cultural sentiment and social responsibility.conveys not just funds but the Company's deep responsibility and affection for
education embodying its original intent to give back and nurture future generations.Certificate of donation
Key honors
Sending warmth to comfort the elderly in winter demonstrating filial piety and care
Every Spring Festival eve the Company visits widowed and elderly residents in Xiachen donating winter relief supplies to
deliver festive care and warmth. In 2025 it allocated RMB 50000 in dedicated funds to actively promote filial piety and respect
for the elderly ensuring vulnerable seniors enjoy a warm winter and a peaceful New Year. For years this year-end gesture Aw a rde d t he nat io na l "Exe m pla r y
Organization for Respecting the Elderly"
has never been absent—conveying corporate warmth and exemplifying the traditional virtue of honoring elders and social
by the Off ice of the National Working
responsibility lighting the path to rural harmony with compassion. Commission on Aging
October 2025
Awarded the "Taizhou Charity The Company was awarded the title
Outstanding Contribution (Group) of "Model Enterprise for Respecting
Teachers and Valuing Education" by
Award" by the Taizhou Charity
the Jiaojiang District Committee and
Federation
District Governmen
May 2025 September 2025
Awarded "Advanced Enterprise for
Respecting Teachers and Valuing Education"
by the CPC Taizhou Jiaojiang District
Committee and Taizhou Jiaojiang District
People's Government
September 2025
Consoling widowed and elderly residents in Xiachen
137 1382025 Environmental Social and Governance (ESG) Report
Building a philanthropic brand
The Company is committed to building an influential philanthropic brand consolidating forces for good through systematic operations.Since Jack initiated the establishment of the Filial Piety Sewing Foundation it has upheld the mission of "spreading filial piety globally Smart sewing workshops: Integrating industry and education to empower talent
and filling the world with kindness" driving the transformation of charitable giving from sporadic acts into a sustained vision-driven
cause. The Foundation focuses on the "Five Thousand Programs" developing five flagship initiatives: "Sewing Love for Thousands of
Families" "Smart Sewing Workshops" "Sewing for Helping the Elderly" "Sewing for a New Life" and "Sewing for Talent Cultivation" Leveraging compassionate enterprises within the Jack Technology industrial chain the Company co-established two "Smart
systematically advancing filial piety and kindness elderly and vulnerable support and educational empowerment. Through professional Sewing Workshops" empowering industry-education integration primarily through donations of intelligent equipment. The project
program management and sustained resource investment the Company translates philanthropic ideals into routine practice embodying precisely addresses challenges in remote areas—such as shortages of training equipment inadequate teaching conditions and
corporate responsibility and contributing to a harmonious society. delayed skills development—by pioneering a model of "intelligent equipment + specialized curriculum + hands-on workshops."
Each semester it delivers two months of practical instruction benefiting 153 students to date. Through school-enterprise
collaborative education aligned with corporate hiring standards it supplies the industry with skilled professionals bridging the
talent-industry gap.Sewing love for thousands of families: Sewing love creating beautiful encounters
Guided by the philosophy of "warming hearts through small gestures and benefiting lives through micro-services" the project
addresses the "mending difficulty" faced by the elderly and mobility-impaired. It innovates with an integrated "mobile services
+ fixed stations + caring relay" model and a dual-track system of "fixed-point services + home visits." Eight "Charity Sewing
Homes" have been established hosting over 200 public welfare events and providing free mending and upcycling services to
more than 3860 individuals along with home visits for 65 vulnerable persons. The initiative has engaged over 30 upstream and
downstream enterprises forging multi-party collaboration. Widely covered by media and government platforms it has become a
replicable public welfare brand driven by government-society-enterprise synergy.Sewing for helping the elderly: IP-driven operation to pass on filial piety and kindness
Sewing for a new life: Where feet cannot go hands sew hope for you
Focused on safeguarding the rights of people with disabilities the project leverages the Company's technological strengths to Executed by the Zhejiang Filial Piety Sewing Foundation and leveraging Jack Technology's industrial chain resources the project
develop specialized sewing equipment tailored to their needs enabling skills-based employment. Through professional training establishes a "enterprise + foundation + industrial chain" collaboration mechanism to develop the "A Bowl of Longevity Noodles"
it has helped four individuals with disabilities master core sewing skills successfully transitioning them from passive "recipients" elderly-care philanthropy IP. It coordinates with compassionate enterprises across Jack's ecosystem to deliver regular elderly
to active "contributors." This initiative not only addresses the narrow employment pathways for people with disabilities but also support services centered on material care and emotional companionship having provided warmth to 1020 elderly individuals in
empowers them with dignity and confidence through skill development demonstrating the Company's compassionate care and need. The initiative promotes daily standardized and replicable elderly care services passing on filial piety and kindness while
responsibility toward vulnerable groups. enhancing seniors' sense of security and happiness.
139 1402025 Environmental Social and Governance (ESG) Report
Sewing for talent cultivations: Precise educational support to nurture dreams Severe illness medical assistance program
Leveraging Jack Technology's industrial chain resources the project delivers targeted educational support by accurately
Specifically implemented by the Zhejiang Filial Piety Sewing Foundation and supported by Jack Technology's industrial chain
addressing the core needs of disadvantaged students. Focusing on academic security and character development it has
resources the program targets the urgent needs of families facing major illnesses. Covering 18 provinces including Henan
assisted 985 students to date. While alleviating their educational burdens it sows seeds of filial piety and kindness and spreads
Jiangxi Hubei and Shanxi it has successfully assisted 120 families to date effectively easing their medical burdens and
philanthropic warmth. Fulfilling corporate social responsibility it supports the cultivation of a socially conscious new generation
delivering hope and compassion. This initiative fulfills corporate social responsibility reinforces the basic livelihood safety net and
advancing educational equity and common prosperity.spreads positive social energy.Filial piety and kindness classroom: Cultural inheritance and philanthropic transmission
Leveraging Jack Technology's industrial chain resources the initiative has visited universities enterprises schools rural
communities and charity-focused factories to regularly conduct activities including lectures on filial piety and kindness sewing
science outreach handicraft workshops compassionate donations and co-building shared charity libraries. Through storytelling
and hands-on interaction it conveys values of filial piety and kindness while simultaneously donating books and care packages
to precisely deliver warmth to the elderly and children. This effort not only preserves China's fine traditions but also expands the
scope of public service reflecting the social responsibility and humanistic care of both the Company and the Foundation.In 2025 the Zhejiang Filial Piety Sewing Foundation reached 3000 beneficiaries through various public welfare activities mobilized over
100 volunteer service hours and organized 20 events. These efforts not only delivered tangible support to vulnerable groups but also
promoted philanthropic values and traditional virtues demonstrating the firm resolve of the Company and the Foundation to jointly fulfill
social responsibility and advance sustainable development. The Company has supported 105 persons with disabilities in achieving re-
employment with cumulative wage payments totaling RMB 6427700.
141 1422025 Environmental Social and Governance (ESG) Report
Key performance table Indicator category Quantitative indicator name Unit 2024 2025Total number of employee satisfaction
questionnaires distributed Copies 6474 7457
Employee satisfaction
Indicator category Quantitative indicator name Unit 2024 2025 surveys Questionnaire response rate % 78 70
Society Employee satisfaction results % 91.42 94.32
Number of employees Total number of employees Persons 7163 7576 Total hours of occupational health and work safety
training Hours 7500 120000
Number of new Number of new hires Persons 1561 1383 Health and safety
training and drills Total training hours per capita Hours 1 16 employees Number of new full-time employees Persons 1561 1383
Number of safety drills (fire toxic gas leaks etc.) Times 150 220
Number of female employees Persons 2290 2331
Total investment in work safety Ten thousand 2020.43 4326.00
Number and proportion Number of male employees Persons 4873 5245 yuan
of employees by gender Percentage of female employees % 32 31 Ratio of total work safety investment to operating
revenue % 0.33 0.66 Investment in
Percentage of male employees % 68 69 work safety Investment in employee work-related injury Ten thousand 328 411
Number and proportion Number of full-time employees Persons 7163 7576 insurance yuan
of employees by Employee work-related injury insurance coverage
employment type Percentage of full-time employees % 100 100 rate % 100 100
Number of employees aged 30 and below Persons 2028 2209 Number of work-related injuries (serious and above) Persons 0 0
Number of employees aged 30-50 Persons 4151 4335 Number of work-related fatalities (fill in 0 if none) Persons 0 0
Number and proportion Number of employees aged 50 and above Persons 984 1032 Persons / RMB
of employees by age Number of work-related fatalities per unit of revenue 100 million in 0 0 Percentage of employees under 30 % 28 29 revenue
Percentage of employees aged 30–50 % 58 57 Number of workdays lost due to work-related injuries Day 963 1128
Work-related injuries
Percentage of employees over 50 % 14 14 Number of workdays lost due to work-related injuries Days / RMB
per unit of revenue million in revenue 0.16 0.17
Number of employees with below a bachelor's
degree Persons 5719 5768 Occupational disease incidence rate % 0 0
Number of employees
by educational Number of employees with a bachelor's degree Persons 1300 1535 Lost time injury rate for employees % 0.34 0.41
background Number of employees with master's degrees Persons 133 260 Injury rate per unit of work hour % / million work hours 1.34 1.67
Number of employees with doctoral degrees Persons 11 13 Number of work-related injuries to suppliers (minor Persons 0 0
Number of senior management employees Persons 104 119 and above)
Supplier safety
Number of middle management employees Persons 263 292 Number of work-related fatalities among suppliers Persons 0 0 Number of employees
by rank Number of junior management employees Persons 595 623 Total hours of supplier safety training Hours 100 100
General staff Persons 6201 6542 Total training time Hours 49026 53836
Number of employee resignations Persons 751 788 Average training hours per person Hours 6.84 7.11
Employee turnover/resignation rate % 10 10 Total training hours for female employees Hours 15585 16828Number and percentage
of employee turnover Number of voluntary employee resignations Persons 751 788 Duration of Average training hours per female employee Hours 6.81 7.22
employee training
Voluntary employee resignation rate % 10 10 Total training hours for male employees Hours 33441 37008
Ten thousand Average training hours per male employee Hours 6.86 7.06 Per capita compensation yuan 14.48 14.63
Compensation Total training hours for senior management Hours 1680 2860
Per capita revenue generation Ten thousand yuan 89.54 89.53 Average training hours per senior manager Hours 16.15 24.03
Employee social insurance coverage rate % 100 100 Total number of training sessions for the year Times 2300 3100
Protection of basic
rights and interests Number of employees in hardship assisted per Persons/million
unit of revenue in revenue 0.0008 0.0014 Employee training Annual training expenditure
Ten thousand
yuan 1088 2751
assessment
Discrimination Confirmed incidents of discrimination Cases 0 0 Number of employees trained Persons 7163 7576
Forced labor Confirmed incidents of forced labor Cases 0 0 Employee training coverage rate % 100 100
Child labor Confirmed incidents of child labor Cases 0 0 Overall suppliers Number of core suppliers Counts 243 414
143 1442025 Environmental Social and Governance (ESG) Report
Indicator category Quantitative indicator name Unit 2024 2025 Indicator category Quantitative indicator name Unit 2024 2025
Raw materials Counts 194 358 Total number of customer satisfaction questionnaires
distributed Copies 11000 12000Supplier category
management Equipment Counts 36 36 Customer Total number of satisfaction questionnaires collected Copies 10450 11475
Non-production Counts 13 20 satisfaction Total number of valid satisfaction questionnaires collected Copies 10450 11475
survey
Tiered supplier Number of tier 1 (direct) suppliers Counts 234 405 Questionnaire response rate % 95 96
management Number of non-tier 1 (indirect) suppliers Counts 9 9
Customer satisfaction survey results % 88.5 91.8
Supplier assessment coverage rate % 100 100
Supplier assessment Number of confirmed data security incidents Cases 0 0
Supplier assessment qualification rate % 100 100
Monetary value involved in data security incidents Ten thousand yuan 0 0
Percentage of suppliers who have signed the
Supplier Code of Conduct % 97.94 98.79 Data security Number of training sessions on data security and Times 970 1676
Percentage of suppliers with contracts including and customer
customer privacy protection
environmental and labor requirement clauses % 97.94 98.79 privacy Number of relevant emergency drills Times 1 1
Number of suppliers that have undergone social Number of confirmed customer privacy breaches Cases 0 0
impact assessments Counts 54 103
Sustainable Number of suppliers that have undergone Monetary value involved in customer privacy breaches Ten thousand yuan 0 0
procurement environmental impact assessments Counts 111 111 Environment
Number of suppliers identified with significant actual
and potential negative social impacts Counts 0 0 Total investment in environmental management Ten thousand yuan 921.78 759.60
Number of suppliers identified with significant actual Ratio of total investment in environmental management Counts 0 0 to operating revenue % 0.15 0.12 and potential negative environmental impacts
Environmental
Percentage of internal procurement staff who have Number of violations of environmental laws and management Cases 0 0
completed sustainable procurement training % 100 100 regulations
Product qualification rate % 99.43 99.50 Amount of major administrative penalties imposed by ecological and environmental authorities for Ten thousand yuan 0 0
Number of product recalls Cases 1200 800 environmental incidents during the reporting period
Production quality Product recall rate % 0.039 0.037 Diesel consumption Litres 244545 244322
Amount of damages involved in major liability Natural gas consumption Cubic meter 1100248 1784049
accidents related to product and service safety and Ten thousand yuan 0 0 quality in the year Electricity consumption MWh 168470 172542
Energy
R&D expenditure Ten thousand
Total purchased electricity MWh 150969 159334
yuan 48799.02 55333.86R&d investment Renewable electricity consumption for self-generation
Ratio of total R&D expenditure to operating revenue % 8.01 8.4 and self-use
MWh 17501 17933
Total number of R&D personnel Persons 1289 1465 Solar energy consumption MWh 12815 12068R&D department
personnel Percentage of R&D personnel % 18 19 Total exhaust gas emissions Ten thousandcubic meters 493065.87 140103.32
Trademarks held etc. Cases 669 696 Air pollutant Nitrogen oxides (NOx) emissions kg 2686.41 1878.10
Total valid patents Items 2705 3034 emissions Volatile organic compounds (VOCs) emissions kg 3349.52 3885.15
Including invention patents Items 1125 1221
Intellectual property Particulate matter (PM) emissions kg 40168.78 33418.04
Utility model patents Items 1334 1545 Water pollutant
emissions Total wastewater discharge
Ten thousand cubic
meters 1.46 1.45
Design patents Items 246 268
Total water consumption Tonnes 4261418 4625621
Accumulated software copyrights Items 549 634 Water resource
management Water use intensity Tonnes/RMB 10000Response Response in revenue 6.99 7.00
Customer feedback response time Days within 10 within 10
minutes minutes Total waste generated Tonnes 4028.85 4996.85
Customer service Customer feedback response rate % 99.94 1.00 Waste disposal Including: Total hazardous waste Tonnes 391.13 405.50
Customer complaints Times 67 50 Including: Total non-hazardous waste Tonnes 3637.72 4618.35
Cumulative customer service Times 55403 72172 Raw material Total mass or volume of materials used for production
and packaging and packaging Tonnes/cubic meters 5834.4 5834.4
material
management Including: Non-renewable materials used Tonnes/cubic meters 2203.2 2203.2
145 1462025 Environmental Social and Governance (ESG) Report
Index of indicators
Indicator category Quantitative indicator name Unit 2024 2025 Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed
Renewable materials used Tonnes/cubic meters 3631.2 3631.2 Companies – Sustainability Report (Trial)
Raw material Recycling rate of materials used for production and
and packaging % 95 95 No. Level 1 topics Level 2 topics Relevant sectionspackaging
material * Management of risks and opportunities related to climate
management Including: recycling rate of production materials % 95 95 change Addressing climate change
* Assessing the adaptability of the Company's strategy and
Including: recycling rate of packaging materials % 95 95 business model to climate change Addressing climate change
Governance * Transformation plans measures and progress in
addressing climate-related risks and opportunities Addressing climate change
Total number of board members Persons 9 9 Climate change * Providing greenhouse gas emissions across different 1 scopes by category Addressing climate change
Number of female directors Persons 2 2 tackling * Providing greenhouse gas emissions by category Addressing climate change
Number of non-independent directors Persons 6 6 * Methodology for greenhouse gas emissions accounting Addressing climate change
Number of independent directors Persons 3 3 * Greenhouse gas reduction practices Addressing climate change
Percentage of female directors on the board % 22 22 * New technologies products and services conducive to
reducing carbon emissions and achieving carbon neutrality Addressing climate change
Percentage of executive directors on the board % 67 67 * Pollutant discharge information Pollution emission control
Percentage of independent directors on the board % 33 33 * Pollutant discharge treatment Pollution emission control
Percentage of independent directors on the Audit 2 Pollutant % 67 67 discharge * Emission reduction targets Pollution emission controlCommittee
Percentage of independent directors on the * Impact on communities Pollution emission control
Remuneration Committee % 67 67 * Administrative penalties Pollution emission control
Percentage of independent directors on the Nomination
Board of Committee % 67 67 * Waste volume Pollution emission control
Directors
Percentage of independent directors with a tenure 3 Waste disposal * Treatment status Pollution emission control
exceeding 6 years % 0 0
* Emission reduction targets Pollution emission control
Percentage of independent directors serving on the
boards of more than 3 listed companies % 0 0 * Exit activities Environmental compliance management
Number of full board meetings Times 10 10 * Protective measures within the region Environmental compliance management
Ecosystem and
Number of Board of Directors Audit Committee meetings Times 4 5 4 biodiversity * Protection and restoration measures Environmental compliance management
protection
Number of Nomination and Remuneration Committee Times 3 4 * Biological genetic resources Environmental compliance managementmeetings
* Product life cycle impact Environmental compliance management
Number of Board of Directors Strategic Committee
meetings Times 1 1 * Risk management Environmental compliance management
Environmental
Average board attendance rate % 100 100 5 compliance * Emergency incidents Environmental compliance management
Number of directors who attended less than 75% of managementPersons 0 0 * Administrative penalties Environmental compliance managementmeetings
* Usage status Resource recycling
Minimum attendance requirement for each director % 100 100
Shareholders' 6 Energy usage
* Clean energy Resource recycling
Meeting Number of Shareholders' Meetings Held Times 3 3 * Conservation targets Resource recycling
Equity and Executive shareholding ratio* % 0.75 Usage of water * Usage status Resource recycling
shareholders 7Share pledge ratio % 0 0 resources * Conservation targets Resource recycling
Economy * Target plans Resource recycling
Total assets Ten thousand yuan 785320.96 841577.06 8
Circular
economy * Specific measures Resource recycling
Operating revenue Ten thousand yuan 609365.38 658695.77 * Progress and outcomes Resource recycling
Total profit Ten thousand yuan 90163.45 92895.94 * Corporate strategy Promoting rural revitalization
9 Rural revitalization * Specific measures Promoting rural revitalization
Note: As of 2025 executives held 13% of the Company's shares through indirect ownership. * Achievements Promoting rural revitalization
147 1482025 Environmental Social and Governance (ESG) Report
No. Level 1 topics Level 2 topics Relevant sections Reader Feedback Form
10 Contributions to the Contribution status Giving back to the community and buildingsociety a philanthropic brand Reader Feedback Form
* Strategic goals Innovation-driven R&D
* Specific details Innovation-driven R&D Dear Readers
11 Innovation-driven
* R&D achievements Innovation-driven R&D
* Innovation impact Innovation-driven R&D Thank you for taking the time to read the 2025 Environmental Social and Governance (ESG) Report of Jack Technology Co. Ltd. To
provide you and other stakeholders with more valuable information and to effectively enhance our capacity and performance in fulfilling
* Fields of engagement Innovation-driven R&D corporate social responsibility we sincerely look forward to your comments and suggestions.Ethics of science and * Internal management Innovation-driven R&D12 technology * Violations Innovation-driven R&D Multiple choice questions (please tick the appropriate box with a √)
* Training and awareness Innovation-driven R&D
What is your overall evaluation of this Report
* Risk management Supply chain management
Excellent □ Good □ Fair □ Poor □ Very Poor
13 Supply chain security * Safeguard measures Supply chain management
* Improvement measures Supply chain management How well does the Report respond to and disclose issues of concern to stakeholders
Equal treatment to * Outstanding payments Supply chain management Excellent □ Good □ Fair □ Poor □ Very Poor
14 small and medium-sized
enterprises * Specific details Supply chain management
* Management system Quality assurance; Customer service excellence How do you rate Jack Technology's performance in economic responsibility
Excellent □ Good □ Fair □ Poor □ Very Poor
* Quality certifications Quality assurance; Customer service excellence
15 Safety and quality of products and services * Major incidents Quality assurance; Customer service excellence How do you rate Jack Technology's performance in environmental responsibility
* After-sales service Quality assurance; Customer service excellence Excellent □ Good □ Fair □ Poor □ Very Poor
* Accessibility Quality assurance; Customer service excellence
* Management system Digitalization strategy How do you rate Jack Technology's performance in safety management
Data security and * Security incidents Digitalization strategy Excellent □ Good □ Fair □ Poor □ Very Poor
16 customer privacy
protection * Customer privacy protection Digitalization strategy
How do you rate Jack Technology's performance in employee responsibility
* Data breach incidents Digitalization strategy
Excellent □ Good □ Fair □ Poor □ Very Poor
* Employee recruitment Protection of employee rights; Talent training and development; Employee health and well-being
17 Employees * Occupational health and safety Protection of employee rights; Talent training and
How do you rate Jack Technology's performance in community responsibility
development; Employee health and well-being Excellent □ Good □ Fair □ Poor □ Very Poor
* Career development and training Protection of employee rights; Talent training and development; Employee health and well-being
18 Due diligence Due diligence implementation Strict adherence to business ethics; Supply chain
Are the information indicators and data disclosed in the Report clear accurate and complete
management Excellent □ Good □ Fair □ Poor □ Very Poor
19 Communications with
* Communication mechanisms ESG management; Efficient governance operations
stakeholders * Feedback channels ESG management; Efficient governance operations Do you find the content arrangement and layout design of this Report easy to read
* Management system Strict adherence to business ethics Yes □ No
20 Anti-commercial bribery
* Risk assessment Strict adherence to business ethics
and anti-corruption * Training effectiveness Strict adherence to business ethics Open-ended questions
* Incidents occurred Strict adherence to business ethics
* Management system Strict adherence to business ethics Do you have any comments or suggestions regarding Jack Technology's fulfillment of social responsibility and this Report
21 Anti-unfair competition
* Administrative penalties Strict adherence to business ethics
149 150Jack Technology Co. Ltd.
No. 1008 East Section of Donghai Avenue Sanjia
Jiaojiang District Taizhou City Zhejiang Province
Tel: 0086-576-88177757
沪公网安备31011802005267号
