01 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

2025

Environmental Social and

Governance (ESG) Report

Loncin Motor Co. Ltd.Contents

0102

About the Report 03

Laying a Solid Foundation for Governance Empowered by Innovation Forging Out-

Top Message 04 Ensuring Steady & Long-Term Development standing Products

Through Compliance

About LONCIN 05

Wholehearted Loyalty to the Party Steering 14 Empowered by Intelligent Innovation Jointly Writing a ESG Governance 10 23LONCIN on a Steady Course New Chapter in the Industry

Building a Solid Foundation for LONCIN 16 Risk Control as a Foundation Safeguarding the 25

Development of the Green Chain

Steady Development with Strict Adherence to

Operational Bottom Lines 17 Comprehensive Quality Management Across the Entire 26

Supply Chain Strengthening the Foundation of Quality

Walking Hand-In-Hand with Transparency and 20

Strengthening Value Communication

0304

Appendix 1: Key Performance 47

Indicators Green Intelligent Manufacturing Leading People-Oriented Development for Social

the Low-Carbon Transformation Harmony

Appendix 2: Index of 48

Indicators

System Management: Laying a Solid Green Foundation 28 Employee Empowerment and Value Realization 39

Appendix 3: Feedback Form 50 Responding to Climate Change Protecting Our Earth 30 Warm Care Greater Happiness 41

Green Operations and Low-carbon Production 32 Life First Safety Foremost 44

Continuous Innovation-Driven Green Development 35 United in Purpose Spreading LONCIN’s Warmth 4603 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About the Report

About the Report

Report Overview Data Sources Report Access

This report is the Environmental Social and Governance (ESG) Report of The financial data used in the Report is from the audited annual report This report is published in both English and Chinese and the Chinese text

Loncin Motor Co. Ltd. (hereinafter referred to as “the Report”) disclosing of the Company and other data is from official documents and statistical shall prevail in case of ambiguity between the versions. You can obtain more

and presenting the Company’s performance in environmental social and reports of the Company (previous years' data should be based on the dis- information about our environmental social and corporate governance on

corporate governance areas to stakeholders and other parties. The Report closure in this report). the Company's official website (https://www.loncinindustries.com) and the

has been reviewed and approved by the Boar d of Directors of the Com- website of the Shanghai Stock Exchange.pany which assumes responsibility for the authenticity and validity of the

information contained herein.Basis for the Preparation Contact Information

Scope of Reporting The Report complies with the Guidelines No. 1 for Self-regulation of Listed Companies—Standardized Operation Guidelines No. 14 for Self-Regulation Contact address: Zone A LONCIN Industrial Park Dashi Second Branch

of Listed Companies—Sustainability Report (Trial) and Guidelines No. 4 for Road Nan'an District Chongqing

The scope of information disclosed in the Report covers Loncin Motor Co. Self-Regulation of Listed Companies – Preparation of Sustainability Re-

Ltd. its branches and subsidiaries which is consistent with the scope of the port issued by the Shanghai Stock Exchange with reference to the Global Contact number: 023-89028829

consolidated financial statements of LONCIN (603766). Sustainability Standards Board (GSSB)'s GRI Sustainability Reporting Stan- Email: service@loncinindustries.com

dards (GRI Standards) and the Sustainable Development Goals (SDGs) of

the United Nations.Period

Unless otherwise specified the scope of time covered in the Report is from Reference Explanation

January 1st 2025 to December 31st 2025. To ensure the completeness of

the Report the scope of time for certain information has been extended For the convenience of presenting and reading “Loncin Motor Co. Ltd.” is

both forward and backward. also indicated in the report by “LONCIN” “the Company” or “we”.04 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Top Message

Message from the Dear partners and friends:Time moves on and action defines progress. In 2025 amid the sweeping waves of industrial transformation and fierce market competition LONCIN remained steadfast in the vision of "A Leading Brand

Chairman with a Low-Carbon Power System and Intelligent Products" and stayed committed to the corporate mission: "Creating Speed & Energy Pursuing Excellence Beyond Limits Benefiting Humanity Crafting Dynamic Beauty via Technology". LONCIN embedded ESG principles across its entire production and operation chain strengthened its foundation through green intelligent manufacturing fostered syn-ergies via collaborative governance and laid a solid groundwork for long-term growth through standardized corporate governance thus making remarkable strides toward sustainable development.Building on green development to anchor the “main direction” of intel- Taking governance as the core to consolidate the “ballast” for steady

ligent manufacturing transformation development

High-quality development in the manufacturing sector cannot be achieved without the under- Standardized governance is the fundamental guarantee of sustainable corporate develop-

pinning of green initiatives. As a manufacturing enterprise we firmly believe that smart man- ment. In 2025 we will comprehensively advance the upgrade of our corporate governanceufacturing is not an option but a necessity for survival. Over the past year we have stayed system to create a new cultural ecosystem characterized by “unity in diversity and harmonycommitted to the "Carbon Peaking and Carbon Neutrality" goals driving the deep integration in differences.” We refined internal control systems and processes optimized the structure of

of green development into production and operations. On the production side we have opti- the Board of Directors’ six specialized committees and enhanced decision-making efficiency

mized our energy structure improved the utilization efficiency of clean energy sources such and execution strength becoming decisive executors proactive problem-solvers and effective

as solar photovoltaics and advanced workshop-level energy-saving renovations successfully practitioners. In addition we improved information disclosure mechanisms to safeguard the

being awarded the title of “National Green Factory.” On the product side we have focused on rights of shareholders and stakeholders to information and participation increased corporate

the transition to electrification increased R&D investment in new energy powertrain systems transparency and won the “SSE Eagle Gold Quality” Elite Board Secretary Award of Shanghai

and launched multiple smart mobility products featuring long range and low energy consump- Securities News. Furthermore we have strengthened compliance management strictly ad-

tion. At the same time we have deepened our strategic cooperation with BMW integrating hering to market regulations and industry standards. By integrating compliance principles into

world-class manufacturing standards into the entire process of green product development. every aspect of production sales and R&D we have fortified our defenses in risk management

Through concrete actions we have demonstrated that green transformation is not only a social and ethical business operations elevating our corporate governance to new heights.responsibility but also a vital source of our core competitiveness.The Year of the Horse (Bingwu) galloping toward the horizon. In 2026 standing at a newstarting point we will remain steadfast in our ESG commitment riding the wave of “dig-Forging ahead with collaboration to jointly foster an “ecosystem” for italization” and scaling new heights of “innovation”. We will continue to deepen green

shared value intelligent manufacturing achieving breakthroughs in electrification intelligence and digitalization while focusing on cutting-edge initiatives such as the “Industrial Brain” for

To make significant contributions a Company must also shoulder significant responsibilities. high-end motorcycles. Furthermore we will continue to practice collaboration and mu-

LONCIN’s development has always been inseparable from the hard work of all employees the tual benefit pooling resources to build a more resilient industrial ecosystem. Moreover

support of our partners and the generous support of all sectors of society. In the social dimen- we will continue to improve corporate governance ensuring standardized operations to

sion we practice the values of “collaborative development and contribution-oriented” building safeguard the Company’s long-term development striving to become a benchmark sus-a four-in-one value-sharing system encompassing “enterprise—employees—partners—soci- tainable enterprise in the industry.ety.” For our employees we refine incentive mechanisms and welfare systems promote visual Soaring Ambitions to Embark on a New Journey United Strengths to Guide LONCIN to

management and digital office practices enabling them to grow and realize their value in a safe Greater Achievements. Let us unite in purpose and pool our collective wisdom demon-

and healthy working environment. For our partners we leverage synergies to achieve resource strating our commitment through hard work and driving development through innovation.sharing and complementary strengths fostering a development synergy that delivers a "1+1>2" We will deliver an outstanding ESG performance to repay the trust of all shareholders and

effect. For society we deepen our commitment to public welfare focusing on rural revitalization the support of our partners. Together we will contribute greater LONCIN strength to the

education support and care for vulnerable groups. Meanwhile we drive regional economic de- sustainable development of the industry and the progress of society!

velopment through industrial empowerment demonstrating the responsibility and commitment

of a national manufacturing enterprise.Loncin Motor Co. Ltd.Chairman05 Loncin Motor Co. Ltd. EEnnvviriroonnmeennttaall S Soocciaiall a anndd G Goovveerrnnaannccee ( (EESSGG)) R Reeppoorrtt 2 2002255 About LONCIN

About LONCIN

Products and Businesses

Company Overview Product Introduction

Loncin Motor Co. Ltd. (SSE stock code: 603766) was established in 1993 Motorcycle and Engine Products

and listed on the Shanghai Stock Exchange in 2012. Headquartered in

Chongqing the Company has over 10000 employees and more than Independent The Company takes the transformation and upgrading of its independent brands as its core strategic engine. Centered on consumers’ real needs and guided by

20 subsidiaries worldwide with products sold to over 90 countries and market differentiation it systematically develops a brand ecosystem for VOGE and LONCIN featuring "dual-core parallel development tiered operations and full-

regions across the globe. brand domain coverage" and forges a multi-dimensional brand layout featuring "high-end leadership segment-focused deep cultivation and global expansion" to achieve

the synergistic enhancement of brand value and core market competitiveness.The Company has set "becoming a global leader in intelligent motorcycle

mobility" as its development goal and systematically built a brand VOGE: VOGE upholds the philosophy of "Far & Beyond Quality" throughout its whole series of products. Taking the European market as its strategic core the brand

ecosystem for VOGE and LONCIN featuring "dual-core parallel development

tiered operations and full-domain coverage". The Company’s production extends its influence globally establishing an advantageous market layout covering "Europe and Central & South America" while continuously extending its reach to

and sales volume of motorcycles exceeded 1.6 million units motorcycle regions such as Africa and Southeast Asia. It is committed to growing into a leading Chinese motorcycle brand with global influence.engines 3.3 million units and general-purpose machinery over 4.4 million LONCIN: With a core strategy of full-spectrum coverage and full-scenario penetration the company has built a three-dimensional product matrix featuring

units. These businesses have ranked among the top in the industry for “entertainment leadership scenario extension and rigid-demand support”. It has formed a full-category product ecosystem covering two-wheelers three-wheelers

many consecutive years and the Company has also maintained a leading and four-wheelers creating a one-of-a-kind full-scenario mobility ecosystem in the industry to fully meet all-around demands from recreation to practical application.position in the industry in terms of export earnings for many years.The Company is the first enterprise in the industry to pass the MotorcycleNational Safety Technology Exemption Certification. It owns a “NationalEnterprise Technology Center” a “National Industrial Design Center” and

a “National Accredited Laboratory”. It has been awarded honors such as

“Most Competitive Market Brand” “Top 10 Innovative Enterprises in ChinaIndustrial Design” “Top 100 Valuable Companies Listed on the Main Boardin China” and “National Green Factory”. Its subsidiary engine company

has been recognized as an “Excellence-level Smart Factory”.Faced with the new industrial landscape LONCIN upholds the vision of

"becoming a leader in the smart light mobility industry" and has launched

its core strategy of "dual excellence in quality and intelligence". In 2026guided by the action plan of “Brand Elevation Intelligent EmpowermentDual-power Strategy and Global Layout” and upholding the philosophy Independent Motorcycle Brands

of “Focus and Precision Pragmatism and Innovation” LONCIN will drive

a qualitative shift from “exporting products” to “exporting brands andsystems” build a global ecosystem and achieve high-quality growth.Cooperative Since 2005 the Company has established a stable strategic cooperative partnership with BMW Motorrad with the dimensions of cooperation continuously deepened

and expanded. The collaboration has extended from single-cylinder engines to twin-cylinder engines and complete motorcycles forming a stable model of batch

products delivery and collaborative development.06 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

Engine The Company has built the most complete and in-depth power platform in the industry. We have achieved full engine coverage across all product categories History of Development

(two-wheelers three-wheelers four-wheelers) and all displacements (100cc-1000cc). More crucially guided by a platform-based and modular R&D philosophy

products we efficiently apply cutting-edge multi-cylinder technologies for medium and large displacements to our full product portfolio. At the same time scenario-

specific dedicated R&D delivers in-depth empowerment to segmented markets including three-wheelers and four-wheelers. This makes LONCIN the only

enterprise in the industry capable of leveraging its proprietary powertrain system to simultaneously support the rapid development and cost optimization

of complete vehicle products for all scenarios—commuting recreation off-road freight transport and high-end all-terrain vehicles. LONCIN has established

core competitiveness through vertical integration from core power systems to end-use complete vehicles. Furthermore through systematic patent strategies

LONCIN has established a robust intellectual property framework establishing strong competitive advantages in technology and market positioning thereby

providing a solid foundation for the long-term growth of its business.

1993 the predecessor “Chongqing LONCIN Transportation Machinery”

was established and the first motorcycle engine was launched.

1998 the first motorcycle was launched.

2001 the first general-purpose gasoline engine was launched.Engine Products 2002 the LONCIN motorcycle was recognized as a “Well-known Trade-mark in China”.General-purpose Engine Products 2004 LONCIN motorcycle was awarded the title of “Famous Brand inChina”.The Company has established a diversified product portfolio covering small household generator sets non-road engines garden machinery end products 2005 LONCIN started to cooperate with BMW in Germany and theand energy storage power supplies. In terms of business development the Company has built its first production line for ride-on lawn mowers. By partnering LONCIN technology center was recognized as a “ National Tech-with Husqvarna a world-renowned brand the Company has realized the mass production and market launch of ride-on lawn mowers marking a significant nology Center”.strategic breakthrough for the Company in garden end products.

2007 LONCIN passed the Motorcycle National Safety Technology Ex-

emption Certification.

2012 it was successfully listed on the Shanghai Stock Exchange.

2015 it signed a whole vehicle strategic cooperation agreement with

BMW.

2018 it released its own high-end brand for motorcycles VOGE.

General-purpose Engine Products

2024 significant changes occurred in the controlling shareholder and

Business Layout the actual controller. The refreshed shareholder structure has re-vitalized the Company’s development momentum and ushered in

a new chapter of growth.Adhering to the concept of global development the Company has built a sound industrial and channel layout. In terms of industrial layout LONCIN has established six major manufacturing

bases in Chongqing Henan Guangdong Zhejiang Jiangsu and other regions across China as well as in Vietnam forming a global production network that covers key markets and 2025 LONCIN marked the 20th anniversary of its collaboration with

provides a solid guarantee for product supply. Regarding channel layout the Company has built a network of over 2000 sales channels extensively covering developed countries in BMW Motorrad.Europe and America as well as various developing nations. With diversified market penetration its export revenue accounts for over 60% of the total and its global operation capacity

has been steadily strengthened.07 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

Honors and Awards

2025 Top 500 Chinese Private 2025 Top 100 Enterprises in Chongqing 2025 Top 100 Manufacturing 2025 Classic Brand Cases of 2025 Collective with Outstanding Contributions

Enterprises Ranked 470th Enterprises in Chongqing Chinese Listed Companies to Promoting the High-quality Development of

the Private Economy in Chongqing Economic

and Technological Development Zone

National Green Factory Excellence-level Smart Factory Chongqing Future Factory 2025 Lighting for Good Third Guoxin Cup ESG Golden Bull

Award Enterprise for Good Award Top 10008 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

Corporate Culture 2025 ESG Performance Highlights

Corporate Vision Global Influence Centuries of Vitality Economic Performance

Brand Vision A Leading Brand with a Low-Carbon Power System and Intelligent Products

Operating income Total assets

Corporate Mission Creating Speed & Energy Pursuing Excellence Beyond Limits Benefiting Humanity

Crafting Dynamic Beauty via Technology

million million

Corporate Values Customer First Striving for Excellence Collaborative Development Contribution-

19135.154517340.3289

oriented

Development Goal Becoming a Global Leader in Intelligent Motorcycle Mobility

Corporate Philosophy Attain to the Broad and Great while Addressing the Delicate and Minute Environmental Performance

Core Concepts Focus Precision Pragmatism Innovation Environmental protection Cumulative photovoltaic Cumulative carbon Total recyclable

power generation emission reduction waste

Methodology Cognition Strategy Action investment

Development Strategy Focus on Core Business Bigger and Stronger More Specialized and Thorough 10.6822 million 843.90 MWh 229.54 tons 626.15 tons

Strategic Initiatives Brand Excellence Product Leadership Precision Channel Management Digital and

Intelligent Driven Global Operations

Six Principles of Standardization Digitalization Automation Lean Manufacturing Visualization and

Manufacturing Intelligence Social Performance

Supply Chain Strategic Guidance Industrial Chain Development & Strengthening Digital and Employee physical Number of employee Number of safety Number of employees

Management Philosophy Intelligent Empowerment Joint Contribution and Shared Benefits examination coverage rate training sessions training sessions in safety training

Talent Philosophy Integrity First Learning as the Priority Competence as the Foundation and participant-

Performance as the Ultimate Goal 100 % 4369 470 2478 times

2025 Highlights Cumulative number of Number of trademarks R&D patents granted obtained investment

7111 1447 468.5588 million

June 2025 LONCIN's vision-only intelligent lawn mower robot made its global debut at the 2025

Eisenach Garden & Horticulture Exhibition in Germany.August 2025 LONCIN's EP350 portable energy storage power supply wins the 2025 Red Dot Award

September 2025 20th Anniversary of Cooperation between LONCIN and RUSI of the Philippines Governance Performance

November 2025 The 2025 Milan Motorcycle Show (EICMA) concluded successfully with LONCIN & Number of board Percentage of Number of anti-corruption

VOGE making a distinguished appearance at EICMA 2025. participated in the 8th meetings held independent directors training sessions

China International Import Expo (CIIE).December 2025 LONCIN marked the 20th anniversary of its collaboration with BMW Motorrad. 9 33.33 % 509 Loncin Motor Co. Ltd.Environmental Social and Governance (ESG) Report 2025 About LONCIN

Responding to the United Nations Sustainable Development Goals (SDGs)

LONCIN adheres to sustainable development as its core guiding principle and seamlessly integrates the key elements of Environment Social and Governance with the United Nations Sustainable Development Goals (SDGs) for 2030. By

continuously improving its governance system and innovating practical approaches the Company has consistently enhanced its comprehensive management effectiveness proactively fulfilled its social responsibilities and taken concrete

steps to advance the implementation of the global Sustainable Development Goals. It is forging steadily ahead on the path towards high-quality sustainable development.Chapter Chapter

1. Employee Empowerment and 2. Risk Control as a Foundation

IV. People-Oriented Development Value Realization Safeguarding the Development of II. Empowered by Innovation

for Social Harmony 4. United in Purpose Spreading the Green Chain Forging Outstanding Products

LONCIN’s Warmth 4. United in Purpose Spreading

LONCIN’s Warmth

1. Employee Empowerment and

IV. People-Oriented Development Value Realization

1. Wholehearted Loyalty to the

for Social Harmony 4. United in Purpose Spreading

Party Steering LONCIN on a I. Laying a Solid Foundation for

LONCIN’s Warmth Steady Course Governance Ensuring Steady &

2. Building a Solid Foundation for Long-Term Development Through

LONCIN Compliance

IV. People-Oriented Development 2. Warm Care Greater Happiness

for Social Harmony 3. Life First Safety Foremost 3. Green Operations and Low- III. Green Intelligent Manufacturing

carbon Production Leading the Low-Carbon

Transformation

1. Employee Empowerment and

IV. People-Oriented Development Value Realization III. Green Intelligent Manufacturing

for Social Harmony 4. United in Purpose Spreading

2. Responding to Climate Change

Protecting Our Earth Leading the Low-Carbon LONCIN’s Warmth Transformation

II. Empowered by Innovation

IV. People-Oriented Development 1. Employee Empowerment and 3. Comprehensive Quality Forging Outstanding Products

for Social Harmony Value Realization Management Across the Entire

Supply Chain Strengthening the II. Green Intelligent Manufacturing

Foundation of Quality; Leading the Low-Carbon

III. Green Intelligent Transformation

Manufacturing Leading the 3. Green Operations and Low-

Low-Carbon Transformation carbon Production 3. Green Operations and Low-

carbon Production III. Green Intelligent

III. Green Intelligent

Manufacturing Leading the 4. Continuous Innovation-Driven

Manufacturing Leading the

4. United in Purpose Spreading

Green Development Low-Carbon TransformationLow-Carbon Transformation LONCIN’s Warmth

IV. People-Oriented 1. Employee Empowerment and 1. Empowered by Intelligent II. Empowered by Innovation

Development for Social Value Realization Innovation Jointly Writing a New Forging Outstanding Products

Harmony 2. Warm Care Greater Happiness Chapter in the Industry; III. Green Intelligent

4. Continuous Innovation-Driven Manufacturing Leading the Low-

Green Development Carbon Transformation10 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 ESAGb Goouvt eLrOnNanCcINe

ESG Governance

ESG Governance Structure

LONCIN actively responds to the United Nations Sustainable Development Goals. It has established a well-targeted scientific

rigorous and forward-looking ESG governance framework forming a clearly defined three-tier management system consisting

of the "Board of Directors – ESG Leading Group – ESG Working Group" with distinct powers and responsibilities. The Company

deeply integrates ESG principles into its business decision-making continuously optimizes its management system and enhances

management capabilities steadily advances ESG practices throughout its operations and the entire value chain and joins hands

with employees customers partners and other stakeholders to jointly move toward a sustainable future.Be responsible for approving ESG strategies objectives

Decision-making and annual reports and supervising the implementation

Body of overall ESG objectives.Board of

Directors

Be responsible for identifying ESG-related risks formulat-

ESG ing development plans and promoting daily work;

Leading Management

Group Be responsible for regularly reporting key ESG matters

and implementation progress to the board of directors;

Be responsible for implementing ESG initiatives formulat-

Operational ing relevant systems and plans;ESG Working

Group Body Be responsible for daily operation collecting and organiz-

ing ESG information and preparing relevant reports.LONCIN ESG Structure Chart11 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 ESG Governance

Stakeholder Communication

In-depth participation of stakeholders serves as a key driver for the Company to continuously elevate its ESG management standards. The Company has always attached great importance to communication and collaboration with all stakeholders. It proactively collects and responds

to their expectations and suggestions on the Company’s ESG practices through diverse channels and has established a diversified communication and interaction mechanism. In light of its own business characteristics the Company has identified its core stakeholder groups which

mainly include employees customers investors government and regulatory agencies the media industry associations cooperative suppliers and communities.Stakeholders

Government / Shareholders / Supplier Customer Employees Community The Media Social

Regulatory Agencies Investors Organizations and Other

Stakeholders

Compliance with Laws and Compliance and Risk Honest Cooperation and Provision of High-quality Employee Training and Community Service and Corporate Social

Regulations Management Fair Trade Products Development Philanthropy Responsibilities

Implementation of National Improvement of Mutual Development Integrity in Business Employee Health and Fulfilling Social Financial Performance

Policies Corporate Governance Safety Responsibilities

Structure Supply Chain Quality Customer Openness and

Expectations Compliant and Lawful Sustainability Service Remuneration and Transparency of

and Appeals Operation Product Quality and Benefits Information

Safety Information and

Environmental Protection Security Employee Diversity Service and Product

Protection of Information

Shareholders' Interests After-sales Service Employee Life Care

Public Disclosure of General Meeting Supplier Conference Customer Feedback Employee Representative Public Welfare Activities Official Website

Information Collection Conference and WeChat Official

Annual Reports and Periodic Supplier Review Participation in Community Account

Debriefing and Information Releases Customer Satisfaction Employee Training Building

Communication of Daily Bidding Meeting Survey Media Interviews and

Operations Official Website Investor Employee Hotline Providing Jobs Cooperation

Communication Relations Column Customer Complaint

Channels Supervision and Hotline Chairman Mailbox Improvement of Local Information Disclosure

Assessment Investor Hotline and Mailbox Infrastructure

Customer Online and Support for Employees in News Promotion

Interview and Reception Investor Reception Day Offline Activities Difficulty

Green and Low Carbon Performance Briefing Staff Activities

Operation12 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 ESG Governance

Analysis of Double Materiality Topics

The assessment of double materiality topics serves as the core prerequisite for ESG report preparation and the development of management systems.Its key function is to accurately identify topics that exert a significant impact on the enterprise’s sustainable development stakeholder decision- LONCIN Double Materiality Topic Matrix

making as well as environmental and social development thereby clarifying management priorities and ensuring the quality of disclosures. This

process reflects an enterprise’s systematic ESG governance capacity driving it to shift from the compliance baseline of passively meeting regulatory Environment Society Governance

requirements to forward-looking planning that proactively integrates ESG into its development strategy. For enterprises the assessment enables

them to mitigate core risks optimize resource allocation and enhance brand trust and core competitiveness. Such a process demonstrates that an

enterprise has integrated the ESG principles into its development strategy possesses scientific governance capabilities and a sense of responsibility

and is committed to achieving the synergistic coexistence of corporate and social value which aligns with the core requirements of ESG disclosure. Stakeholder Communication Leagership in

and Cooperation Party Building

LONCIN has continuously optimized its ESG double materiality topic analysis process. By integrating core factors including stakeholders’ expectations Labor Management

national conditions and policies industry characteristics and the Company’s development strategy the Company has identified the materiality of Employee Training and Development

different topics through multi-dimensional communication. It then conducted a comprehensive analysis from the dual dimensions of each topic’s Business Ethics and Corgorate Governance

impacts on the enterprise and its stakeholders and established a complete double materiality topic matrix. This matrix clearly defines the priority of Information Security and

Privacy Protection Employee Health topics provides scientific guidance for the precise allocation of ESG resources and the advancement of key topics further strengthens the systematicity and Safety

and pertinence of the Company’s ESG governance and highlights its firm determination to practice the concept of sustainable development.Biodiversity Conservation Circular Economy Industry

Cooperation

Analysis processes for double materiality topics: Product Quality and Safety

Compliance Operation Risk Management

Boosting National and Use of Resources Innovation

Economic Development and R&D

In accordance with relevant domestic and international sustainable development standards combined with industry and Energy

policies and regulatory requirements and based on the Company’s business value chain and actual operational character- Toxic Emissions and Waste

istics sort out and preliminarily identify ESG topics highly relevant to the Company’s development. Supply Chain Management

Customer Service Intellectual Property Preliminary Protection

identification

of topics Sustainability/ESG

Conduct assessments on the preliminarily identified ESG topics based on the principle of “double materiality”: Rural Revitalization Management

Impact materiality assessment Digital Transformation Carbon Emissions

Evaluate the potential positive and negative impacts of each topic from the environmental social and economic dimen- Anti-corruption

Cleantech Opportunities

Integration of

sions and analyze the severity scope and irreversibility of such impacts. Environment Management ProductionLearning

Financial materiality assessment System and Researching

Double Analyze the impacts of each topic on the Company’s financial performance and assess the likelihood of occurrence of

materiality

assessment relevant risks and opportunities as well as their effects on business continuity and strategic development.Integrate the results of impact materiality and financial materiality assessments screen and confirm ESG topics Materiality to Corporate Finance

with double materiality and construct a double materiality topic matrix to clarify the core directions for subsequent

information disclosure optimization of management practices and enhancement of responsible value.Topic

confirmation

and integration

Materiality of Impacts on the Economy Society and the Environment13 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

01

Laying a Solid Foundation for

Governance

Ensuring Steady & Long-Term

Development Through Compliance

01/ Wholehearted Loyalty to the Party Steering 14

LONCIN on a Steady Course

02/ Building a Solid Foundation for LONCIN 16

03/ Steady Development with Strict Adherence to 17

Operational Bottom Lines

04/ Walking Hand-In-Hand with Transparency and 20

Strengthening Value Communication

Response to the United Nations SDGs:14 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

Wholehearted Loyalty to the Party 1.2 Party Member Composition

Steering LONCIN on a Steady Course

Party members of the Company are appointed to various important and key Classified by Length of Classified by AgeParty Membership

LONCIN integrates the Party’s leadership into every aspect of corporate governance strengthens the positions. Among them 36 serve as middle and senior management cadres 2.46%

accounting for 19.78% of the Company’s middle and senior management cadres. 12.00%

2.08%2.77%

building of primary-level Party organizations and builds a robust defense line for integrity and risk pre-

vention and control. This ensures the Company’s strategies are in step with national development strat- Party members also make up a certain proportion in positions such as R&D (7.92%) 21.23%23.08%

egies and guarantees its steady and long-term development. production (0.91%) and sales (7.71%) playing a highly important exemplary and

28.31%

leading role.

1.Party Organization Structure The ranks of Party members are mainly composed of veteran Party members. Party members with a Party standing of 10 years or more account for more than 50% of 39.69%

the total. They serve as the backbone and stabilizing force of the Party organization. 22.77%

44.62%

1.1 Basic Composition The ranks of Party members exhibit a distinct trend of rejuvenation with a concentrated contingent of core backbone members. Party members born in the 20+ Years 10-19 Years 6-9 Years Post-60s Post-70s

1980s and 1990s collectively account for over 70% of the total forming the absolute 2-5 Years less than 1 year Post-80s Post-90s Post-00s

The Party Committee of LONCIN has 8 Party branches within Chongqing 1 Party branch outside Chongq- backbone of the Party organization and infusing it with vitality. Those born in the 1970s (21.23%) serve as experienced managers while those born in the

ing and 1 sub-Party Committee outside Chongqing (which governs 3 Party branches). As of December 1960s and 2000s account for a smaller proportion. The overall structure is olive-shaped ensuring an orderly succession.

31st 2025 the Company has a total of 461 CPC members including 325 in-service Party members and

136 retired Party members. The Party organization possesses strong external appeal and internal cohesion and the development of Party members is conducted in a standardized and

orderly manner. The Company has a sufficient and well-structured reserve of prospective members including Party membership applicants and activists

LONCIN Party Committee for Party membership. Currently there are 18 Party membership applicants and 35 activists for Party membership and the development of the reserve

contingent of Party members has yielded sound results.

2. Party-building Activities

Henan LONCIN Party Committee

LONCIN places great emphasis on Party-building activities. In 2025 Party branches conducted themed Party Day activities covering topics such as ideological

guidance integrity education business integration innovation empowerment and collaboration with mass organizations. In particular through initiatives

such as Party building along the industrial chain the supportive role of Party building in the Company’s high-quality development has been significantly

enhanced.

2.1 Ideological Guidance

The LONCIN Party Committee prioritizes political theory study as its primary task. Through systematic and routine learning mechanisms it continuously

strengthens the ideological and theoretical foundation of the Party member ranks. In 2025 focusing on the latest directives and major deployments of

the Party Central Committee the Party Committee organized all branches to conduct activities such as lectures on the spirit of the Two Sessions study

and discussion on the spirit of the Fourth Plenary Session of the 20th CPC Central Committee and specialized study sessions on implementing the Eight-

point Regulation of the CPC Central Committee. These activities cumulatively covered over 600 Party members. These activities guide Party members to

fully comprehend the decisions and arrangements of the Party Central Committee strengthen the “Four Consciousnesses” enhance the “Four-sphereParty Organization Structure Chart Confidence” and ensure the “Two Upholds”.Guangdong LONCIN Company

Party Branch

Henan LONCIN Manufacturing

Department Welding Party Branch

Henan LONCIN Manufacturing

Department General Assembly Party

Branch

Henan LONCIN Administrative and

Logistics Party Branch

LONCIN Motorcycle Components

Party Branch

LONCIN Motorcycle Production

Party Branch

LONCIN Motorcycle

Comprehensive Party Branch

Engine Components Company

Party Branch

LONCIN General-purpose Engine

Business Unit Party Branch

Engine Company Party Branch

LONCIN Technology Center Party Branch

LONCIN Functional Platform Party Branch15 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

2.2 Business Integration

Case Innovating Party Building Activity Forms

The Party Committee of LONCIN adheres to integrating Party building work into the entire process of production and operations. It

The Company’s Party Committee emphasizes innovation has fully implemented the creation of “Model Post for Party Members” and “Responsibility Zone for Party Members” across all Party

in formats and diversification of platforms. In 2025 the

Company innovated the forms of its Party building work branches guiding Party members to play a vanguard and exemplary role in key positions such as technical research production

and broadened learning channels. In collaboration with frontlines and market development. Each Party branch based on its specific business characteristics has established Party mem-

the “Yima Dangxian” Party Branch of the Baishiyi Court of ber technical research teams and Party member task forces to tackle key challenges and difficulties in production and operations.Jiulongpo District it invited Comrade Liu Ping a National

People’s Congress deputy to visit the Company and In addition the Company actively explores new models for Party building within the industrial chain using Party building as a link

deliver a special lecture on the spirit of the Two Sessions. to promote the coordinated development of upstream and downstream enterprises. Each Party branch proactively engages in joint

This activity effectively guided Party members to deeply Party building activities with partners such as Yuanping Machinery. Through joint initiatives such as themed Party days technical

grasp the decisions and plans of the Party Central exchanges and business seminars the Company promotes the deep integration of Party building work with the development of

Committee and to effectively transform the outcomes of

their studies into a powerful driving force for promoting the industrial chain. Through Party building within the industrial chain resources have been effectively integrated injecting power-

the high-quality development of the Company. Lecture on the Spirit of the “Two Sessions” ful momentum into enhancing the overall competitiveness of the industrial chain.Case Joint Party Building Drives Industrial Synergy Development

Case Integrity Warnings: Strengthening the To strengthen the leading role of Party building and foster a new pattern of open and coordinated industrial PartyDisciplinary Defense building the Company organized a symposium in 2025 themed “Integrating Party Building with the Supply Chain: ARed Engine Empowering High-quality Development.” During the event the Company engaged in in-depth discussions

The Company’s Party Committee has always placed Par- with the heads of Party organizations from seven core supply chain enterprises including Degang Technology Taicang

ty conduct and integrity building at the forefront adher- Technology and Yinjiao Brake and signed an agreement on joint Party building for the industrial chain. At the same

ing to the principle of prioritizing education and focusing time the Company conducted a Party-building exchange activity with the Party branch of Humi Technology to learn

on prevention. In July 2025 the Company organized Par- from advanced practices and promote mutual improvement. Through joint Party-building efforts the Company is driving

ty members and cadres to visit the Chongqing Party Con- organizational collaboration resource sharing and mutually beneficial development.duct and Integrity Education Base for immersive warning

education. Through viewing exhibition panels of typical

cases listening to statements made by serving prison-

ers and watching educational films Party members and

cadres underwent a profound ideological cleansing and

spiritual awakening. Following the activity Party mem-

bers and cadres engaged in discussions and wrote re-

flective essays guided to take these cases as lessons

keep the warning ever-present and remain vigilant in up-

holding integrity and self-discipline at all times. Through

education and guidance Party members and cadres are

encouraged to cultivate a sense of reverence maintain

caution and adhere to ethical boundaries thereby fos-

tering a political environment characterized by integrity

and uprightness.Party-building Activities Integrated with Business

Integrity Education16 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

Building a Solid Foundation for LONCIN

LONCIN maintains a standardized and efficient governance operation strictly fulfilling its duties in accordance with relevant laws and regulations such

as the Company Law and the Governance Code as well as the provisions of the Company’s Articles of Association. In 2025 in accordance with relevant

LONCIN has continuously optimized its corporate governance structure. By establishing six specialized commit- regulations and the Company’s corporate governance requirements the Company held a total of 26 meetings which effectively guaranteed scientific

tees maintaining frequent governance meetings and promoting diversity in the composition of the Board of decision-making and compliant operation of the Company’s major matters.Directors the Company has built a modern corporate governance system characterized by clear delineation of

powers and responsibilities scientific decision-making and effective checks and balances. This has provided a

solid institutional guarantee for the Company’s standardized operations and sustainable development. 2. Diversification of the LONCIN Governance Structure Conference in 2025

Board of Directors Meeting Number

1. Governance Structure In order to establish a more scientific and efficient corporate gover- General Meeting 3nance system LONCIN has optimized the composition of the Board of

Directors actively promoted diversity and established a governance Board of Directors 9

structure that maintains a balance between age and professional

LONCIN strictly adheres to laws regulations and supervisory requirements such as the Company Law of the background. Members of the Board of Directors range in age from 30 Audit and Risk Control Committee 4

People’s Republic of China (hereinafter referred to as the Company Law) and the Code of Corporate Gover- to 60 creating a tiered structure that combines the succession of ex-

nance for Listed Companies (hereinafter referred to as the Governance Code) fully integrating compliance Nomination Committeeperience with the dynamism of innovation; furthermore Members of 3

requirements into corporate governance processes to continuously enhance the standardization of operations. the Board of Directors hold outstanding academic qualifications with Remuneration and Appraisal Committee

To meet the needs of business development on February 14th 2025 the Company systematically optimized 3over 80% holding a master’s degree or higher.the specialized committees under the Board of Directors establishing six specialized committees: the Strategy Strategy and Investment Committee 1

and Investment Committee the Audit and Risk Control Committee the Budget Management Committee the The Company's Board of Directors strictly adheres to corporate gov-

Related Transactions Committee the Nomination Committee and the Remuneration and Appraisal Committee. ernance standards. In 2025 the Board of Directors comprises nine Budget Management Committee 1

This adjustment aims to clarify the boundaries of authority and responsibility for each committee fully leverage members three of whom are independent directors. The Company's

their professional decision-making and supervisory functions and thereby establish an operational mechanism directors possess diverse professional backgrounds covering multiple Related Transaction Committee 1

characterized by clear delineation of authority and responsibility effective checks and balances and scientific fields including finance management law engineering and science Special Meeting of Independent Directors

decision-making among the General Meeting the Board of Directors and the management team thereby effec- providing robust professional support and multi-faceted intellectual 1

tively safeguarding the legitimate rights and interests of the Company and all shareholders. input to meet the diverse requirements of the Company's strategic

decision-making and business development.The proposals regarding the addition and adjustment of committee members were reviewed and approved at

the fifth meeting of the fifth Board of Directors on March 4th 2025. This marks a further refinement of the Com-

pany’s governance structure laying a solid institutional foundation for enhancing the efficiency and scientific List of Board Members and Their Positions

nature of decision-making and meeting the requirements of the new stage of development.Name Genders Education Profession Position held

General Meeting Master's Strategy And Investment Committee Li Yao Male degree Management Nomination Committee Strategy and Investment Committee

Hu Xianyuan Male Master's Engineering Remuneration and Assessment Committee Strategy and Investment Committee and Budget Management

Audit and Risk Control Committee degree Committee

Huang Peiguo Male Master's degree Economics Strategy and Investment Committee and Related Transaction Committee

Nomination Committee Jiao Yiyang Male Master's Audit and Risk Management Committee Strategy and Investment Committee and Related Transaction Science

Board of Directors degree CommitteeMaster's

Remuneration and Appraisal Committee Liu Zhao Male degree Engineering Audit and Risk Management CommitteeStrategy and Investment Committee

Gong Hui Male Master's Business Strategy and Investment Committee

Budget Management Committee degree Administration

Liu Jianxin Male PhD Management Audit and Risk Management Committee Nomination Committee Strategy and Investment Committee Related Transaction Committee and Independent Director

Management Related Transaction Committee Master's Audit and Risk Management Committee Remuneration and Assessment Committee Strategy and In-Chen Dingwen Male degree Accounting vestment Committee Budget Management Committee Related Transaction Committee and Independent Director

LONCIN Corporate Governance Structure Chart Master's Audit and Risk Management Committee Nomination Committee Remuneration and Assessment Commit-Yang Zeyan Male degree Law tee Strategy and Investment Committee Budget Management Committee Related Transaction Committee and Independent Director17 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

Steady Development with Strict Adherence to

Operational Bottom Lines

LONCIN has established a multi-dimensional compliance governance framework covering risk management internal controls business ethics anti-corruption and

data security and privacy protection. Through organisational restructuring the refinement of policies and procedures technological empowerment and regular

training the Company has comprehensively enhanced its risk prevention and control capabilities and compliance standards thereby providing a solid foundation 1.2 Functional analysis

for high-quality development.LONCIN has established a comprehensive risk management system covering the entire process—from

1.Risk Management and Internal Control pre-event during-event to post-event. With risk governance and internal control as its cornerstones the system operates systematically through six functional modules:

To improve risk management effectiveness LONCIN implemented significant optimisations to its risk management framework in 2025. The Company restructured the former

Audit Committee into the Audit and Risk Management Committee and revised the corresponding Rules of Procedure for the Board’s Audit and Risk Management Committee Top-level design and in- stablishing the institutional foundations for a comprehensive

to clarify its powers and responsibilities whilst further refining the working mechanisms of the Audit and Risk Management Committee and the Audit Department. Under stitutional development: risk management and internal control framework.the leadership of the Board of Directors the Company has established a clear “Three Line of Defence” risk management organisational structure. The first line of defence

comprises the various business departments which are responsible for identifying and controlling risks in their day-to-day operations; the second line of defence consists of Implementing pre-emptive measures through legal risk

the Company's Risk Management Centre which carries out professional risk monitoring and compliance management; the third line of defence consists of the Internal Audit Prevention in advance and assessments of contracts litigation and major projects to

Department which is responsible for auditing and providing oversight of the effectiveness of the first two lines of defence. proactive forecasting: identify and mitigate potential risks at source.To ensure the effectiveness of the internal control system the Company strictly adheres to regulations such as the Basic Standards for Enterprise Internal Control and Strengthen during-process control through routine oversight

continuously refines management systems such as the Internal Audit System. Furthermore it systematically integrates key elements including risk prevention and the delineation In-process control and mechanisms such as contract review standardised contracts

of responsibilities and authorities into internal control processes thereby promoting the efficient operation of the entire internal control system. process supervision: and the monitoring and follow-up of major matters as well as

through vulnerability assessments.Technical empowerment By leveraging IT tools such as ERP and big data to integrate Board of Directors' Audit

and Risk Management and intelligent monitoring:

production and operational data achieving real-time risk

monitoring and intelligent early warning.Committee

1.1 Organisational structure General Manager of

LONCIN Audit Department Independent verification Verifying the effectiveness and compliance of the internal

Audit Director and audit supervision: control system through audit management.LONCIN has established a three-tier risk management Risk Management Centre

and supervision organisational structure characterised Deputy General Manager

for Risk Management Establish mechanisms for reporting investigation and

by clear hierarchy and well-defined responsibilities. Post-incident accountability accountability; step up anti-fraud efforts; strengthen the

Under the leadership of the Audit and Risk Manage- Audit Specialist and integrity governance: defences of integrity and self-discipline; and ensure a closed-

ment Committee which reports to the Board of Direc- Supervision Department loop approach to post-incident resolution.Legal Department

tors the system is implemented in practice by the Risk Director of Legal Affairs Director of SupervisionDepartment

Management Centre. This framework represents LON-

CIN’s management philosophy of deeply embedding Legal Specialist Supervision Specialist This multi-dimensional risk management framework which encompasses decision-making oper-

risk management and internal oversight into corporate ations and supervision has effectively enhanced the Company's strategic resilience operational

governance and business operations providing a solid Subsidiary transparency and compliance standards in the face of market volatility thereby providing a solid

organisational foundation for the Company’s compli- Director of Risk Management Legal Specialist Supervision SpecialistPart-time Supervisor foundation for high-quality development.ant operations and steady development.Note: For subsidiaries that have not yet established dedicated risk management positions the Risk

Management Centre provides shared services for the relevant operations.18 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

1.3 Risk management training 2. Business Ethics

In order to improve all employees' awareness of risk prevention and control as well as

their professional competence the Company has established a regularised training 2.1 Integrity system framework

programme dedicated to risk management. The training comprehensively covers Whistleblowing channels:

topics such as trade compliance risks tariff war risk prevention sales compliance The Company strictly complies with the Company Law and the Criminal Law of the

risks risks associated with foreign labour regulations contract management risks People’s Republic of China (hereinafter referred to as the “Criminal Law”) and other Whistleblowing email: tousu@loncinindustries.com

personal data protection risks tendering and procurement and the management of relevant laws and regulations. On this basis and taking into account the Company’s

related-party transactions. The Company has organised systematic in-depth training specific circumstances it has formulated and implemented internal management Whistleblowing mailbox: The Company’s Supervision Department

for staff in key roles such as legal affairs international operations human resources systems such as the Detailed Rules for the Implementation of the Anti-Fraud Man- is responsible for managing the whistleblowing mailbox.management and digital technology thereby effectively promoting the integration agement Regulations the Whistleblowing and Complaints Management Regulations

of risk prevention and control principles into daily work practices. In 2025 the the Integrity Management Regulations the Internal Supervision Management Mea-

Company conducted a total of seven specialised risk management training sessions sures the Internal Accountability System and the Measures for the Supervision of Through a 24-hour response mechanism and standardised documentation manage-

significantly improving the risk prevention capabilities of all staff and strengthening Tendering Activities. ment this system both safeguards the legitimate rights and interests of whistleblowers

the defences underpinning the Company’s sound operations. and provides management with a formal channel for understanding conditions on the

In order to foster a business environment characterised by integrity and probity ground thereby significantly enhancing the Company's risk prevention and compliance

the Company has established clear and stringent anti-corruption compliance require- governance standards.ments for both its employees and business partners. It strictly prohibits any form of

Case Prevention of Contract Performance Risks bribery or the improper transfer of benefits and has strengthened its integrity safe-

guards through the implementation of a systematic framework of policies and pro-

On April 25th 2025 the Company conducted a specialised training session cedures. The Company's human resources and corporate management departments

on targeted risk prevention focusing on key aspects of international trade 2.3 Integrity traininghave established a comprehensive integrity record management system covering all

policy and contract fulfilment. The Company organised a specialised staff incorporating employees' conduct and records regarding integrity and self-dis-training session on “Prevention of Contract Performance Risks Under Tariff cipline into the key evaluation criteria for performance assessments appointments In 2025 the Company organised a series of targeted training initiatives centred on theWars” attended by a total of 45 participants primarily comprising legal and removals from post and promotions. This initiative effectively encourages staff themes of professional integrity and risk management which effectively improved the

staff and personnel involved in international business from the General to cultivate a sense of compliance from the ground up and enhances their ability to compliance awareness and operational capabilities of the relevant staff.Machinery Division. The training focuses on four key areas: an analysis of exercise self-discipline. In 2025 the Company experienced no incidents of corruption The Company has conducted a total of four core courses and one cross-departmental

recent US tariff policies; a self-assessment of contract performance risks fraud unfair competition or other breaches of business ethics and there were no comprehensive training programme with over 150 participants in total. The training is

in the context of tariffs; recommendations on strategies for managing lawsuits or significant administrative penalties arising from such breaches. specifically targeted at key groups involved in the prevention and control of integrity

performance risks; and guidance on common risk areas in trade contracts. risks including staff within the supervision system procurement personnel and part-

The training effectively improves the ability of staff in relevant roles to time supervisors. In terms of content design the programme emphasises a blend of

identify and manage risks in a complex trading environment providing 2.2 Whistleblowing Channels theory and practical application covering interpretations of internal regulations such as

professional support for the compliant conduct of international business. the Scoring Guidelines for Key Supervision Matters and the Measures for the Supervi-

In order to standardise the procedures for handling whistleblowing and complaints sion of Tendering Work as well as practical topics including the operational procedures

safeguard the rights of whistleblowers identify and resolve issues in a timely man- for the risk control platform and case studies of emergency risk incidents. Through a

ner and uphold the Company's normal order and principles of fairness and justice series of training sessions the Company has not only systematically communicated its

LONCIN has formulated and implemented the Whistleblowing and Complaints Man- integrity and compliance requirements but has also significantly enhanced the ability

agement Regulations. The regulations explicitly stipulate that the scope of the whis- of staff in key roles to identify risks and operate in accordance with regulations in their

tleblowing and complaints mechanism covers company employees suppliers and daily work. This has laid a solid foundation for establishing robust internal oversight

members of the public and that the types of misconduct covered include seven mechanisms and fostering a corporate culture of integrity and self-discipline.categories such as embezzlement and bribery dereliction of duty and negligence

and the disclosure of trade secrets.Whistleblowing procedure：The Company implements a tiered handling mechanism

whereby routine reports are referred to the relevant operational departments whilst

serious matters are investigated directly by the Supervisory Department with the

findings reported to the Chairman; a comprehensive protection system has been es-

tablished to strictly safeguard the confidentiality of whistleblowers’ information and

any form of retaliation is expressly prohibited; a closed-loop management process

Risk Management Training Image has been established including a review procedure to be initiated within 10 working

days and provisions for financial rewards for valid reports.19 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

The Company complies with the principles of lawfulness legitimacy and necessity clearly defining the purpose

Data collection methods and scope of data collection. Where personal data is collected the data subject must be informed and consent obtained. The Company maintains a data collection inventory and log records to ensure the traceability of

data sources and the compliance of the collection process.Case Tendering Training The Company implements a classification and grading system applying differentiated storage strategies to data

Data storage of varying sensitivity levels. Important data and sensitive personal information are stored in encrypted form and To improve the standardisation and professionalism of the tendering retention periods are clearly defined for each category of data to ensure confidentiality integrity and availability

procedures and to strengthen awareness of integrity in professional throughout the storage period.conduct and compliance capabilities the Company has focused on

key aspects of procurement and supervision organising specialised The Company strictly implements the principle of least privilege assigning data access and manipulation Data usage permissions to users in accordance with business requirements. Permissions are periodically reviewed and cleaned comprehensive training to ensure that policies are effectively imple- up and significant operations involving sensitive data are logged and audited. When sensitive data is used in non-

mented and adhered to. On September 29th 2025 the Equipment production environments it is anonymised to prevent data breaches or misuse.and Technical Upgrading Department and the Supervision Depart- The Company has established a data sharing approval process that clearly defines the scope purpose methodsment organised a “Comprehensive Training Course on Tendering Pro-cedures” for relevant personnel from the procurement and supervi- Data sharing

and security responsibilities of data sharing. When sharing sensitive data externally a security assessment must

be conducted and a data sharing and confidentiality agreement signed; the import and export of data are subject

sion systems. The training covers the Tender Management Measures to strict approval and monitoring.and the Tender Supervision Measures and is designed to enhance the

implementation of control and supervision mechanisms within the The Company has established a data destruction mechanism specifying the methods for erasing data from Data destruction storage media. Data that has exceeded its retention period or is no longer required is processed in accordance

tendering process. Through systematic training the relevant staff’s with prescribed procedures and records of the destruction are retained.understanding of the regulations and their ability to implement them

have been effectively enhanced providing strong support for the Through the aforementioned full-process control measures LONCIN has effectively mitigated security risks such as data breaches

standardised operation of the Company’s tendering procedures and Tender Integrity Training Image and tampering thereby providing a robust data security safeguard for the stable operation of its business.the promotion of integrity.

3.3 Technical systems and physical security measures

3.Data Security and Privacy Protection LONCIN has established a comprehensive data security framework covering multiple layers including infrastructure network perimeters data storage access control and security auditing complemented by robust physical security measures thereby

providing solid technical support for data security throughout the entire lifecycle.

3.1 Rules and Regulations By deploying perimeter security devices such as firewalls and intrusion detection/prevention systems (IDS/IPS) the Company establishes network access control mechanisms to achieve logical isolation between different business networks thereby

effectively defending against external cyber-attacks and malicious intrusions. SSL/TLS encryption protocols are used to secure

LONCIN has established a comprehensive and systematic data security and privacy protection management system. The Company strictly data transmission links ensuring the confidentiality and integrity of data during transmission.complies with national laws and regulations such as the Cybersecurity Law the Data Security Law and the Personal Information Protection

Law and has formulated the Information Security Management Manual Information Security Risk Management Regulations Data Centre The Company has established a comprehensive physical security system for its data centres. Data centres implement rational

Management Regulations System Security Management Regulations Data Backup Management Regulations Measures for the Protection of planning of functional zones clearly demarcating key areas such as data storage and data processing zones and enforce strict

Personal Information and Data Security Cybersecurity Management Regulations Virus and Malicious Code Prevention Management Regu- physical isolation measures to prevent unauthorised access. Furthermore multi-factor authentication and access approval

lations Account Permissions and Password Management Regulations and Information Security Awareness Education and Training Manage- mechanisms are established utilising technologies such as access control systems and biometrics to ensure that only authorised

ment Regulations. These cover multiple dimensions including data lifecycle management physical and environmental security network and personnel can enter critical areas of the data centre. With regard to storage device security the Company selects storage devices

system security risk control and personnel access management. with high-security features that support functions such as encryption and access control. It plans the deployment of these devices

appropriately implements physical isolation measures and carries out regular maintenance and upgrades to ensure the long-

LONCIN has adopted a governance approach that integrates information security into its daily operations and proactively builds a defense term stable operation of the storage devices.system. Through multi-layered institutional arrangements covering policy management technology and operations the Company has estab-

lished robust safeguards for the security of its core information assets and personal data. 3.4 Customer privacy protection

3.2 Security management throughout the data lifecycle The Company strictly complies with the confidentiality requirements of its business partners. In its collaboration with international clients such as the Husqvarna Group both parties have signed a General Supply Agreement which clearly stipulates confidentiality

clauses committing to the strict protection of non-public information provided by the client; this obligation remains in force for

LONCIN Digital Centre is the Company’s central supervisory and operational department for data security and privacy protection responsible five years following the termination of the agreement. This not only demonstrates the Company's commercial integrity but also

for providing guidance conducting inspections revising policies and managing incident response. The Company has established a security serves as an institutional safeguard for building a responsible supply chain and maintaining long-term customer trust thereby

management system covering the entire data lifecycle from collection and storage to usage sharing and destruction. Through a Three-in-One providing a solid compliance foundation for the Company's internationalisation strategy. In 2025 the Company did not experience

approach combining regulatory frameworks technical safeguards and operational management the Company ensures that data remains any customer privacy and information breaches which fully demonstrates the effectiveness of the Company's governance in

secure and under control at every stage of its flow. protecting customer information.20 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

Walking Hand-In-Hand with Transparency and

Strengthening Value Communication

LONCIN has always regarded standardised and transparent disclosure of information together with efficient and open communication with investors as a core element of corporate gover-

nance. The Company has established a communication mechanism underpinned by compliant disclosure and supported by diverse forms of engagement thereby effectively safeguarding

investors’ rights and interests and consistently conveying the Company’s value. In 2025 LONCIN received numerous accolades in a range of authoritative awards covering various areas

including corporate governance ESG practices investor relations and the performance of the Board Secretary. This award not only reflects the capital market’s recognition of the Company’s

achievements in high-quality development but also demonstrates its overall strength in terms of standardised operations transparent governance and value delivery.Ye Kejia Board Secretary of LONCIN has secured a number of prestigious awards in 2025 including a 3A rating in the “Board Secretary Performance Evaluation” by the China Listed Com-

panies Association; she was named “Best Board Secretary” in the New Fortune magazine awards whilst the Company’s Securities Affairs Representative Zhang Xiaowei was named “BestSecurities Affairs Representative”; Furthermore the Board Secretary was honoured with the “Outstanding Board Secretary” award at the “2025 China Listed Companies Yinghua Awards”

organised by China Fund News; received the “Elite Board Secretary Award” in the “SSE Eagle · Golden Quality” selection by Shanghai Securities News; was named “Best Main Board ListedCompany Board Secretary” in the “2025 Listed Companies Reputation Ranking”; and was selected as one of the “Top 100 Most Popular Board Secretaries” by Tonghuashun. At the same time

the Company has been honoured with awards and accolades including the “The 3rd China Reform Cup · ESG Golden Bull Award Top 100” “Listed Companies Favoured by Institutions” and

“Top 300 Most Popular Rising Companies”.These numerous awards serve not only as a testament to our past achievements but also as a driving force for our future endeavours. This fully reflects the recognition of LONCIN’s cor-

porate governance standards and the capabilities of its professional team and demonstrates the Company’s strong commitment to promoting high-quality development and safeguarding

shareholders’ interests.21 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

1. Disclosure of Information Mechanism

The Company aims to strengthen the management of information disclosure enhance the standard and quality of such management and ensure that information disclosed is truthful

accurate complete timely and fair. In accordance with the provisions of the Company Law the Securities Law of the People’s Republic of China the Corporate Governance Guidelines the

Measures for the Administration of Information Disclosure by Listed Companies the Shanghai Stock Exchange Listing Rules and other relevant laws administrative regulations and normative Case

documents as well as the Company’s Articles of Association these Information Disclosure Management Rules have been formulated to ensure that the Company discloses information relating Half-Yearly Performance Briefing

to its operations and management in a timely accurate and complete manner in accordance with the law and relevant regulations thereby enabling investors and other stakeholders to

understand the Company’s corporate governance structure and operational status. To improve the effectiveness of its information disclosure and

strengthen investors’ recognition of the Company’s value the

The Company discloses information to the public via the official website of the Shanghai Stock Exchange and designated media outlets ensuring that all investors have equal and simultaneous Company held its 2025 Half-Yearly Performance Briefing on

access to such information. Furthermore the Company undertakes that all information disclosed to the public is true and accurate protects inside information resolutely prevents insider August 26th 2025 via the SSE Roadshow Centre platform

trading and strictly prohibits any entity from disclosing confidential information relating to the Company or individuals in any form. engaging in in-depth discussions with investors on key topics

such as operational performance strategic planning and indus-

try trends. Through systematic and multi-faceted responses to

questions the Company effectively communicated its strategic

2.Investor Relations progress and operational resilience thereby strengthening trust and recognition within the capital markets.

In 2025 the Company maintains a strong commitment to investor relations and adhering to the principles of openness fairness and impartiality is dedicated to establishing an efficient and

transparent investor relations management system to foster effective communication and interaction between the Company and its investors. Therefore the Company has established a

multi-channel multi-tiered communication system comprising earnings briefings the SSE e-Interaction platform investor reception days an investor helpline on-site visits online discussion

forums and periodic reports to ensure that investors can easily access information and engage in dialogue.In 2025 the Company organised three full-year results briefings and through proactive planning and the delivery of over 100 intensive roadshows across Beijing Shanghai Guangzhou

Shenzhen and Hong Kong established a deep one-to-one foundation of trust with key investors; simultaneously it actively participated in 20 strategy briefings hosted by leading brokerages

widely disseminating the Company’s development narrative; clearly articulating our business logic and future outlook; furthermore innovatively organising our first-ever on-site inspection of

overseas operations which significantly enhanced market transparency and recognition elevating the team’s role from mere “information disseminators” to the Company’s “value discoverers”

and “trust builders”.In 2026 to ensure that investors are kept fully informed of the Company's performance the Company will continue to hold regular earnings briefings and will continually explore and expand

its range of communication channels. The aim is to attract the attention of a wider investor base enhance their understanding of the Company and strengthen their recognition of the Com-

pany's value.The Company places great emphasis on investor returns and in accordance with the Companies Law and relevant regulatory guidelines has established a sound sustainable and stable

dividend policy with a clear commitment to providing shareholders with long-term stable cash returns. As of 2025 the Company has paid cash dividends for 14 consecutive years with total Half-Yearly Performance Briefing

dividends amounting to RMB 4.016 billion (including the interim dividend for 2025). This figure far exceeds the Company's cumulative equity financing (RMB 1.017 billion) representing a truly

historic net return to shareholders.In particular in order to actively respond to the State Council’s Several Opinions on Strengthening Supervision Preventing Risks and Promoting High-Quality Development of the Capital Market

and Several Opinions on Strengthening the Protection of Small and Medium-sized Investors in the Capital Market as well as the guiding principles of relevant documents issued by the China

Securities Regulatory Commission and the Shanghai Stock Exchange and in accordance with relevant laws and regulations the Articles of Association and the Company’s actual operating

conditions the Company has formulated and implemented the 2025 interim profit distribution plan distributing a total cash dividend of RMB 410708370.00.The Company has established a virtuous cycle of “value discovery—trust-building—profit-sharing—value enhancement” through a dual engines of value delivery and shareholder return prac-tices. By distributing actual dividends it has demonstrated its commitment to rewarding shareholders and continues to cultivate an outstanding reputation in the capital markets as a “valuecreator” and “profit-sharer”.In 2026 the Company will continue to focus on long-term and sustainable development balancing the overall interests of all shareholders with the Company’s capacity for sustainable growth.Taking into account the Company’s actual circumstances and the wishes of shareholders we will actively assess the feasibility of measures such as increasing the frequency and payout ratio

of dividends whilst continuing to provide investors with consistent and stable cash dividends and striving to deliver long-term stable and sustainable value returns to shareholders.22 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

02

Empowered by Innovation

Forging Outstanding

Products

01/ Empowered by Intelligent Innovation Jointly Writing a

New Chapter in the Industry

02/ Risk Control as a Foundation Safeguarding the

Development of the Green Chain

03/ Comprehensive Quality Management Across the Entire

Supply Chain Strengthening the Foundation of Quality

Response to the United Nations SDGs:23 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Empowered by Innovation Forging Outstanding Products

Empowered by Intelligent Innovation Jointly Writing a 2.Digital and Intelligent Transformation

New Chapter in the Industry LONCIN is focusing its efforts on the field of smart manufacturing consistently treating it as the core strategic engine for

driving high-quality development and leading industrial upgrading. The Company actively promotes the deep integration

LONCIN places great emphasis on technological research and development has established a comprehensive R&D framework continues to increase and mutual empowerment of smart technologies and advanced manufacturing. By leveraging its established end-to-end

investment in R&D and is constantly deepening its technical cooperation with a number of companies. The Company focuses on the field of smart man- digital and intelligent system—spanning the entire journey “From Market Opportunities to Commercial Realisation”—it

ufacturing actively promoting the development of motorcycle-related data platforms the local deployment of large language models and the establish- achieves cost reduction and efficiency gains through lean and intelligent methods empowering high-quality corporate

ment of an industrial intelligence platform. At the same time emphasis is placed on building up intellectual property assets with continuous technological operations through new-quality productive forces and establishing a digital and intelligent empowerment system and

innovation and a diversified technological portfolio serving to lay a solid technological foundation for industrial upgrading and high-quality development. core competitive advantages across all business scenarios.

2.1 Awarded the Title of “Excellent-level Smart

1.Research and Development Management Factory” and “Future Factory”LONCIN places great emphasis on research and development and has established an R&D structure comprising a “Platform Technology Centre” and “BusinessDivision Product Development Centres”. The Company priorities fundamental research digitalization and intellectual property as key enablers using the market as In September 2025 Chongqing LONCIN ENGINE Co. Ltd. was awarded the National Excellent-Level Smart Factory. In

its anchor to comprehensively drive innovation and breakthroughs across all business lines. The Company has established comprehensive simulation capabilities December 2025 it further received the title of Chongqing Future Factory. Through the development of next-genera-

covering the entire development process including structural strength dynamic performance thermal management fluid dynamics reliability and NVH (noise tion technologies the Company has established a total of 44 models comprising 1 geometric model 28 algorithmic

vibration and harshness) and possesses the corresponding engineering solutions to fully support the technical requirements and growth momentum of all business models 12 design simulation models and 3 mechanistic simulation models as well as 10 knowledge bases.units.Based on comprehensive calculations once the project is implemented production efficiency is expected to increase

In 2025 LONCIN had a total of 1662 staff members across its various R&D teams with R&D expenditure amounting to RMB 468.5588 million. R&D expenditure by 82.22% operating costs to decrease by 34.81% product defect rates to fall by 22.22% R&D cycles to be short-

accounted for 2.45% of revenue reflecting the Company's continued commitment to strengthening its investment in technology. ened by 17.9% energy utilisation to improve by 14.19% and the rate of CNC equipment adoption in key production

processes to reach 100%. By deploying ten major intelligent agent application scenarios across the entire spectrum of

Guided by a strategy of synergy and collaborative innovation the Company has not only deepened its strategic partnerships with renowned domestic and inter- business design and production the project has achieved a significant leap forward in intelligence and digitalisation

national enterprises such as BMW and research institutions but has also continued to inject innovative momentum into the sector’s development by accelerating demonstrating the Company's core competitiveness in the field of smart manufacturing.the commercialisation and industrial application of technological achievements.

2025 2.2 Generic Deployment of Open-Source Large

members across its various

R&D teams R&D expenditure amounting R&D expenditure accounted Language Models to Drive Industrial Upgrading

1662 468.5588 2.45 LONCIN has deployed the open-source large language models staff RMB million % locally. On one hand it has taken the lead in the industry byachieving deep integration between Wuji Motorcycles’ “JiyuOS” and intelligent agent upgrading the “Riding Assistant” and

planning to integrate third-party ecosystems thereby providing

Key technological R&D achievements in 2025: users with a smarter more engaging and revolutionary riding experience. On the other hand by leveraging the data insights

Technical enhancements were implemented across 46 key new products covering performance aspects such as powertrain accumulated through the comprehensive learning of locally

Technical Enhancement and Platform smoothness handling reliability vibration and ride comfort exhaust sound quality thermal comfort and aerodynamic drag achiev- deployed large language models and by developing intelligent

Development for New Products ing a leading position within the domestic market. Four technical platforms for performance development across production lines agent applications trained for industrial scenarios we aim to

were successfully established providing systematic support for product iteration. create the motorcycle industry’s first intelligent riding agent

Undertake 20 new technology R&D projects continue to build core technology platforms and drive preliminary research thereby driving the transition towards new-quality productive Open-Source Large Language Model

Core Technology R&D and Forward- and engineering applications for new systems and materials; simultaneously deepen our expertise in AMT and variable forces. At the same time the Company leverages its full-indus-

Looking Strategy exhaust technologies steadily advance the development of new technologies such as mild-hybrid systems and intelligent try-chain layout to establish a national-level high-end motorcycle industry intelligence hub aggregating industry

vehicle bodies and establish core design capabilities. data and incubating the sector’s first vertical large language model. Empower the entire industrial chain of in-

Advancing 29 R&D capacity-building projects achieving breakthroughs in areas such as objective and subjective evaluation telligent motorcycle manufacturing intelligent motorcycle purchasing and intelligent motorcycle usage so as to R&D Capacity Building and Strategic

systems vibration and thermal management providing comprehensive support for the implementation of the "Precision consolidate the Company's leading position in the industry.Implementation Control 2.0" strategy and continuously reinforcing the "Precision Control" product value proposition.24 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Empowered by Innovation Forging Outstanding Products

2.3 Undertake the Construction of

the Industrial Brain for High-End 3. Intellectual Property Protection

Motorcycles 3.1 Intellectual Property Management System

As the lead contractor for the High-End Motorcycle Industry Brain project

LONCIN has since its launch in February 2025 adhered to the development LONCIN strictly complies with the Patent Law of the People’s Republic of China Trademark Law of the People’s Republic of China Copyright Law of the People’s Republic of China and other relevant

principle of “Four-Side Coordination & Four-Chain Integration”. In laws and regulations. The Company has formulated and implemented a series of guidelines and procedures including the Intellectual Property Management Measures the Patent Management and

collaboration with organisations such as Humi Technology Shuyin Network

and MotoCloud it has completed the development of all functions for Industry Operations Manual the Intellectual Property Application Process Property Rights Risk Search Process Intellectual Property Reward Management Measures etc. By integrating these with the Company’s

Brain 2.0 and successfully launched the platform. The project aggregates OA system LONCIN ensures the effective management of all types of intellectual property. The Intellectual Property Department of LONCIN successfully organized 4 specialized training sessions in

multi-dimensional data on industry operations distribution and ecosystems 2025 to enhance the awareness of relevant departments regarding intellectual property and facilitate efficient intellectual property work. The training covered key areas such as how to file patent

to create three core modules: “Intelligent Motorcycle Manufacturing” applications how to interpret patent rights how to assess patent risks etc. Through systematic training LONCIN aims to strengthen the professional capabilities of various departments in intellectual

“Intelligent Motorcycle Purchasing” and “Intelligent Motorcycle Usage”. property management and application providing solid support for the Company's technological innovation and market expansion.The "Intelligent Motorcycle Manufacturing" module has established business

synergies with 637 core supply chain enterprises thereby establishing an

“Industrial Brain + Future Factory” model. “Intelligent Motorcycle Purchasing”

covers 1700 sales outlets nationwide and serves over 200000 end users 3.2 Research and Development Achievements 20.70%establishing a comprehensive financial services ecosystem. “IntelligentMotorcycle Usage” connects over 280000 intelligent networked motorcycles In 2025 LONCIN continued to advance technological innovation achieving remarkable results and further consolidating its

has launched the “Two-Wheeler Monitoring Platform” and successfully piloted 38.18%technological leadership position in the industry. As of 2025 the Company was granted 7111 patents including 583 domestic and

it in cities such as Urumqi and Putian whilst simultaneously training and international invention patents demonstrating its strong technological reserves. The Company’s newly granted patents in 2025

generating 15 “Intelligent Agents”. This industrial brain assists enterprises totaled 149 including three major categories: invention patents (5) utility model patents (90) and design patents (54) continuously

and the industry as a whole in gaining market insights and adjusting their

operations enhancing supply chain coordination supporting expansion into releasing its innovative vitality. As of 2025 LONCIN holds 1430 valid patents both domestically (1416) and internationally (14)

international markets and providing digital and intelligent empowerment. It including 296 invention patents (293 domestic and 3 international) 588 utility model patents (587 domestic and 1 international) and 41.12%

drives the digital and intelligent transformation of the motorcycle industry 546 design patents (536 domestic and 10 international). This forms a three-dimensional patent protection network primarily focused

and reshapes the industrial ecosystem. on domestic coverage while extending to key global markets providing core support for product competitiveness enhancement and Invention Patents Utility Model Patents

Design Patents

international strategy advancement.Number of Valid Patents Held by LONCIN

3.3 Trademarks

As of 2025 the Company had accumulated 1447 (836 domestic and 611 international) registered trademarks and held 712 (328 domestic and 384 international) valid registered trademarks establishing

a systematic trademark strategy to support its global product sales. In 2025 the Company newly registered 15 trademarks both domestically and internationally continuing to advance its trademark

strategy.

4.Technology Ethics

As technology rapidly evolves and advances the Company continues to expand its presence in the field of cutting-edge technology applications. From the fixed-command interaction

model in 2022 to the introduction of Baidu ERNIE Large Model’s generative intelligence services and the launch of the industry’s first intelligent “Cycling Assistant” in 2023; in 2024 a

local intelligent computing center was established and large model deployment was completed solidifying the foundational infrastructure for intelligent technology; in 2025 the full-

scale implementation of intelligent agents was advanced deeply integrating large models into the entire process of smart manufacturing and intelligent products and developing and

deploying multiple intelligent agent applications. In 2025 the Company did not engage in any conduct that violated technology ethics.Digital Workshop for High-End Motorcycle Production25 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Empowered by Innovation Forging Outstanding Products

Risk Control as a Foundation Safeguarding

the Development of the Green Chain

1.2 Supplier Review and Management

LONCIN has established a comprehensive supplier life cycle management system. Through standardized access proto-

cols ongoing reviews and exit mechanisms—combined with multi-dimensional evaluations and dynamic management LONCIN places great emphasis on the ongoing review and dynamic management of its collaborating suppliers. In accordance with the

approaches—the Company enhances its supply chain risk prevention and control capabilities. This effectively ensures the Management Measures for the Evaluation of Qualified Suppliers a standardized multi-dimensional review mechanism has been established

stable and efficient operation of the supply chain laying a solid foundation for product quality control and the advance- to ensure that suppliers maintain the supply capabilities required by the Company over the long term promote continuous improvement of

ment of core business operations. suppliers and provide a solid foundation for supply chain stability and product quality.LONCIN conducts comprehensive and detailed reviews of its collaborating suppliers. These reviews cover multi-dimensional indicators

1.Supplier Life Cycle Management including core aspects such as quality on-time delivery rates sample submission and quotation progress for new product development and financial data. Evaluations are graded on a 100-point scale and categorized into four levels: A (≥95 points Excellent) B (including 80

points to 95 points Good) C (including 60 points to 80 points Pass) D (＜60 points Unqualified).. Grade A suppliers are eligible for selection

To standardize the management of supplier onboarding changes and exit select suppliers that meet the Company's require- as “Outstanding Suppliers” or “Quality Excellence Suppliers.” Grade D suppliers must undergo corrective actions for quality and delivery-

ments to join the supporting system track changes in suppliers and address them in a timely manner. When a supplier exits the related issues facilitated by the Quality Assurance Department and the Procurement Department respectively. Grade B and C suppliers

Company's supporting system the relevant materials and financial records are effectively managed. The Company has formu- maintain normal cooperation but are required to sign and return the evaluation form. This comprehensive mechanism effectively promotes

lated and refined relevant policies including the Supplier Onboarding Evaluation and Exit Management Process the Qualified continuous improvement among suppliers ensuring supply chain stability and product quality.Supplier Evaluation Management Measures and the Supplier Development and Evaluation Control Procedure in an effort to build

a competitive and sustainable supply chain and comprehensively enhance the Company's competitiveness.

1.1 Supplier Onboarding 1.2 Supplier Exit

LONCIN places great emphasis on supplier onboarding management implementing a rigorous and standardized evaluation

system throughout the entire onboarding process for suppliers of motorcycle parts and general machinery businesses. In accordance with the Supplier Onboarding Evaluation and Exit Management Process LONCIN conducts dynamic full-cycle reviews and

Through multi-dimensional assessments and a tiered approval process the Company ensures supply chain quality and rigorous oversight of its collaborating suppliers. By continuously monitoring suppliers’ overall performance the Company establishes a

business compatibility. standardized and orderly exit management mechanism to ensure that the supply chain remains efficient and compliant at all times.Detailed onboarding measures：For suppliers to locomotive companies the focus is on verifying basic corporate The Company shall initiate the exit procedure when a supplier meets any of the following conditions: First if a supplier’s comprehensive

information—such as workforce composition and the competitor structure—and implementing the corresponding evaluation fails to meet the requirements and the supplier is identified for removal. Second the supplier has been extremely uncooperative

approval processes to ensure that the suppliers meet the required baseline standards. For suppliers to parts companies with the Company's relevant operations which has disrupted normal production and operations. Third the supplier voluntarily applies to

a comprehensive assessment is conducted across five key dimensions—business performance technical capabilities exit due to its own reasons. Once the exit process is initiated the Company will first review its exclusive supply items and finalize resource

manufacturing capabilities quality assurance and after-sales service—with detailed evaluation criteria covering core areas allocation to ensure that the supply of parts remains unaffected. Following this the process will proceed through stages such as return

such as equipment precision process specifications and quality systems. For suppliers to the general machinery business verification final payment settlement review and multi-departmental approval. Finally an exit notice will be issued via the OA system.the focus is on supplier qualifications such as ISO system certifications production capacity product compatibility and Suppliers whose qualified supplier status has been revoked will in principle no longer be included in the list for collaboration.evaluation scores. Following an on-site audit by the SQE and approval by management at multiple levels the supplier’s By establishing a comprehensive supplier exit mechanism the Company can promptly remove suppliers who fail to meet cooperation

onboarding application is approved upon passing these reviews. requirements or demonstrate low levels of cooperation thereby preventing them from affecting product quality and production schedules.These measures effectively screen for high-quality suppliers that meet qualification standards possess strong capabilities It also ensures a smooth transition of resources through standardized exit procedures mitigates supply chain risks and continuously

and align with business needs. They not only address supply gaps in the Company's operations but also ensure supply optimizes the supply chain structure by identifying higher-quality better-suited partners thereby providing a solid foundation for the stable

chain stability and product quality at the source providing solid support for the efficient advancement of the Company's operation of the Company's core businesses such as engine parts.core businesses including locomotives parts and general machinery.26 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Empowered by Innovation Forging Outstanding Products

2.Supply Chain Risk Prevention Comprehensive Quality Management Across the Entire

and Control Supply Chain Strengthening the Foundation of Quality

LONCIN places a high importance on supply chain risk management and the development of a green supply chain.Relevant requirements are implemented in accordance with the Procurement Plan Implementation Management LONCIN is advancing end-to-end quality management and continuously improving its product quality and safety systems. By obtaining multiple

Measures Supplier Quota Management Measures Supplier Onboarding and Exit Management Measures and the authoritative quality management system certifications the Company has solidified the foundation of its product quality. At the same time the service

Production Materials Procurement Contract. The Company strengthens supplier management through end-to-end system has been optimized to meet customer needs and feedback and complaint handling mechanisms have been improved to ensure that 100% of

order control and detailed management measures: complaints are resolved earning high recognition from customers both domestically and internationally.For the same material a “one primary one secondary and one supplementary” supply principle is ap-

plied to suppliers. 1.Product Quality and Safety System

Monthly and annual performance evaluations of suppliers are conducted; suppliers are required to 质量管理体系认证证书 证书编号：00124Q37811R4L/5000

make quality assurance deposits; and a mechanism for holding suppliers accountable for breaches of 兹证明 隆鑫通用动力股份有限公司

统一信用代码:915001076608997871

contract is established. LONCIN continues to refine its product quality management system steadily advancing quality management system

注册地址：中国重庆市九龙坡区九龙园区华龙大道99号

运营地址：中国重庆市九龙坡区九龙园区华龙大道 99号/中国重庆市九龙坡区九龙园区 C区

质量管理体系符合标准：

certification and product quality certification efforts and continuously improving the standardization and normalization of its GB/T 19001-2016 / ISO 9001:2015 通过认证范围如下：

A list of potential suppliers is established and candidates are selected from the list as needed to prevent 摩托车发动机、驱动电机、第二代单缸柴油机、通用汽油机及其终端（发电机组、水泵、微耕机）的设计开发、生产制造、销售（含出口）服务、园林机械草坪车的出口销售和服务；摩托车用驱动电机控制器的研发；摩托车、非公路用车（休闲越野车、全地形车）quality management practices. The Company has obtained ISO 9001 quality management system certification and strictly 的出口销售和服务（覆盖的组织、场所和范围详见证书附件；本证书包含 3张子证书） 首次发证日期：2006年6月26日 本次发证日期：2024年9月4日 有效期至：2027年9月17日

the inclusion of unqualified suppliers. 在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。 本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询adheres to the requirements of the IATF 16949: 2016 Quality Management System—Specific Requirements for the Application

Suppliers are subject to rigorous review of their foundational qualifications; they are required to provide of ISO 9001: 2015 in Automotive Production and Related Service Organizations and the GB/T 19001-2016/ISO 9001:2015

a complete set of documents including business licenses quality management system certifications Requirements for Quality Management Systems among other standards. The Company comprehensively implements quality

environmental certifications and more. Distributors must additionally provide proof of authorization control measures to ensure the stability and reliability of its products.from the original manufacturer.Quality Management

A tiered onboarding evaluation is implemented. Non-special suppliers may be onboarded only after System Certification

passing the initial evaluation; special suppliers must pass the SPS review (with a composite score of

≥5.5). Those who fail to meet the standards must rectify the issues within a specified timeframe and 2.Customer Service and Satisfaction

undergo a re-evaluation.LONCIN adheres to a customer-oriented approach and continuously optimizes its customer service system. The Company strictly complies with laws and

3.Supply Chain Sustainability regulations such as the Consumer Rights Protection Law of the People’s Republic of China and has established internal policies including the Customer Satisfaction Measurement Management Measures and the Customer Satisfaction Control Procedures. This helps the Company improve the quality of its products and services

and enhance its business performance.Management LONCIN has clarified the responsibilities of each department standardized complaint handling and satisfaction survey processes and collected customer feedback

through multiple channels to analyze and address relevant issues. At the same time key performance indicators are quantified and monitored to ensure they

LONCIN strictly complies with relevant national laws and regulations including the Bidding and Tendering Law of the cover core areas such as product quality delivery efficiency and service levels thereby enabling a precise response to customer needs continuous optimization of

People’s Republic of China and has established and refined internal management systems such as the Supplier Man- products and services and ultimately achieving the goals of enhancing customer satisfaction and improving business performance.agement Manual Supplier Onboarding and Exit Management Measures and Supplier Development and Evaluation In 2025 LONCIN achieved remarkable success in customer management and satisfaction. According to the results of the customer satisfaction survey 100%

Control Procedure. The Company requires suppliers to establish and effectively operate environmental management of dealers rated the sales staff’s professional competence highly while 97% expressed satisfaction with business guidance and logistics support. Based on a

systems and occupational health and safety management systems in accordance with ISO 14001 and ISO 45001 stan- comprehensive evaluation of external dealer satisfaction survey scores and internal performance scores the annual overall customer satisfaction score reached

dards. The Company complies with environmental protection occupational health and safety and other relevant laws an outstanding 97.55 points.and regulations; implements measures for pollution prevention and control waste sorting and disposal and energy

In 2025 engine-related social customers filed a total of 20 complaints via telephone involving multiple regions such as Chengdu Sichuan province and Suqian

conservation and consumption reduction; sets a goal of zero major safety incidents; and conducts employee safety Jiangsu province. The complaints covered inquiries regarding engine usage (such as operating speed and specifications) requests for spare parts and repairs for

training and fire drills. At the same time the use of child labor and forced labor is strictly prohibited; the legitimate malfunctions (such as cylinder head oil leaks and damaged auxiliary shafts). All complaints were resolved 100%. After addressing the issues through explanations

rights and interests of employees are safeguarded; fair competition and anti-monopoly rules are adhered to; and coordinating with regional agents and dispatching after-sales repair technicians all customers indicated satisfaction. The resolution of such complaints effectively

commercial bribery improper transfers of benefits and similar conduct are strictly prohibited. Suppliers found to be in and promptly addressed customer concerns prevented dissatisfaction from escalating and strengthened customer trust. At the same time it ensured the stability

serious violation of these rules will have their supply qualifications revoked. of after-sales service quality providing strong support for the Company to maintain and enhance overall customer satisfaction.27 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

03

Green Intelligent Manufacturing

Leading the Low-Carbon

Transformation

01/ System Management: Laying a Solid Green 28

Foundation

02/ Responding to Climate Change Protecting Our Earth 30

03/ Green Operations and Low-carbon Production 32

04/ Continuous Innovation-Driven Green Development 35

Response to the United Nations SDGs:28 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

System Management: Laying a Solid

Green Foundation

LONCIN has strengthened its environmental management system to comprehensively solidify the LONCIN's Environmental Management Goals and Progress for 2025

foundations of environmental compliance and emergency management ensuring that its production and

operations consistently meet regulatory requirements and effectively enhancing its risk prevention and Dimension Objective Measures Progress

control capabilities. In the future the system's operation will continue to be optimized and the principles

of green and sustainable development will be upheld. Reduce energy consumption with Optimize production processes raise

Energy comprehensive energy consumption per awareness of energy conservation and In 2025 comprehensive energy consump-

Consumption RMB 10000 of output value down by establish energy assessment management tion per RMB 10000 of output value was

1.Environmental Compliance 2% from last year measures reduced by 12%

Management Wastewater 100% centralized wastewater treat- Online monitoring periodic third-party ment rate with emissions meeting testing septic tank management etc. No emissions exceeding standards in 2025Management regulatory standards

The Company strictly adheres to national environmental laws and

regulations including the Environmental Protection Law of the People’s Regularly inspect and maintain exhaust gas treatment facilities; periodically

Republic of China the Air Pollution Prevention and Control Law of the Exhaust Emission Complies with the Comprehensive replace environmental consumables

People’s Republic of China the Energy Conservation Law of the People’s Met emission standards in 2025Emission Standards for Air Pollutants such as activated carbon and filter bags;

Republic of China the Water Pollution Prevention and Control Law of 环境管理体系认证证书

Control

collect emissions centrally treat them and

证书编号：00124E33630R5L/5000

the People’s Republic of China and the Solid Waste Pollution Prevention 兹证明 discharge them at a high elevation.隆鑫通用动力股份有限公司

统一信用代码:915001076608997871

and Control Law of the People’s Republic of China. By establishing 注册地址：中国重庆市九龙坡区九龙园区华龙大道 99号

运营地址：中国重庆市九龙坡区九龙园区华龙大道 99 号/中国重庆市九龙坡区九龙园区 C区

Hazardous Waste 100% centralized collection and treat- Dedicated containers designated Container procurement ledger dedicated teams and engaging external consulting firms the Company 环境管理体系符合标准：

GB/T 24001-2016 / ISO 14001:2015

continuously monitors global developments in climate-related laws 通过认证范围如下： Management

personnel for management and

ment rate for hazardous waste management and entrusted disposal disposal by licensed entities have been completed

摩托车、发动机、驱动电机、第二代单缸柴油机、通用汽油机及其终端（发电机组、水泵、微耕机）、全地形车产品的设计开发、

and policies stays abreast of the latest regulations regarding carbon 生产制造、销售（含出口）、园林机械草坪车的出口销售和服务、摩托车用驱动电机控制器的研发及相关管理活动（覆盖的组织、场所和范围详见证书附件；本证书包含 2 张子证书）

emission standards and renewable energy applications provides Complies with the Environmental Soundproofing measures for equipment

首次发证日期：2010年1月27日本次发证日期：2024年8月30日有效期至：2027年9月16日

a basis for decision-making and formulates proactive response 在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。 operation; accept supervision and 本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询 Noise Control Noise Emission Standards for Indus- No emissions exceeding standards in 2025strategies to mitigate compliance risks. At the same time the Company trial Enterprise Boundaries inspection from the local environmental protection bureau

continues to refine its environmental management system clearly

defining the responsibilities of each department regarding climate Prevent major accidents such as me- Standardize job operations perform rou-

compliance and assigning specific duties to individual staff members. Accident Preven- chanical injuries electric shocks fires

tion explosions and hazardous chemical tine equipment maintenance and conduct

No major accidents occurred in 2025

The Company also strengthens training for all employees to enhance

their understanding of regulations and their ability to implement them Environmental Management leaks regular emergency drills

thereby ensuring that all aspects of the Company’s operations comply System Certification

with regulatory requirements. 1.2 Environmental Protection Education

1.1 Environmental Safety Management Objectives The Company places great emphasis on fostering and putting into practice environmental awareness which is not only a key manifestation of corporate social responsibility but also a fundamental requirement of daily operations and management. On the one hand the Company actively promotes green office

practices internally by displaying energy-saving posters in the workshop and office buildings thereby fostering an efficient eco-friendly and modern office

The Company has systematically established its 2025 environmental and safety management objectives culture and encouraging all employees to consciously adopt green office practices in their daily work.across multiple dimensions including wastewater discharge energy consumption hazardous waste and

chemical disposal noise control treatment of exhaust gases from painting and testing processes water On the other hand in managing external stakeholders the Company explicitly requires its business partners to enhance their environmental awareness

reuse at wastewater treatment plants and accident prevention. Through the implementation of a series and strictly comply with national environmental laws and regulations. Business partners must organize training sessions on environmental protection and

of targeted management plans and technical measures all performance indicators have been effectively implement all environmental protection measures during construction or operations including controlling dust and noise protecting vegetation on-site and in

met and continuously improved. No major environmental violations or safety incidents occurred throughout the surrounding area and properly disposing of waste. They must ensure that all materials are removed and the site is cleaned up upon completion of work

the year and the overall management system operated smoothly with notable results demonstrating the and restore the environment to its original condition as much as possible. At the same time the Company incorporates environmental protection requirements

Company's steadfast commitment to sustainable development and safe production as well as its ability into the onboarding training and ongoing supervision of its stakeholders through safety briefings and contractual agreements ensuring that environmental

to put these principles into practice. responsibilities are effectively communicated at every level and fully implemented.29 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

2.Environmental Emergency Management

Case Environmental Protection Training

LONCIN has always placed a high priority on the prevention and emergency management of sudden environmental incidents. In strict accordance with relevant laws and regulations including

On June 18th 2025 the Company organized a specialized the Emergency Management Measures for Sudden Environmental Incidents and in light of its own production and operational realities the Company has formulated a comprehensive emergency

training session on the identification of safety and envi- response plan covering key areas such as the emergency organizational structure prevention and early warning mechanisms emergency response procedures mitigation measures and post-

ronmental hazards for a total of 153 participants includ- incident follow-up. This plan comprehensively addresses all potential environmental risk sources and hazardous substances that may arise during production and operations. To continuously

ing production team leaders supervisors full-time safety improve its emergency response capabilities the Company has implemented a range of measures—including enhanced monitoring of risk sources emergency training and drills and the

officers and environmental protection specialists from stockpiling of sufficient emergency supplies—to prevent environmental pollution incidents and effectively safeguard the surrounding ecological environment and public safety. In 2025 the

various departments. The training provided a systematic Company organized a total of 2 environmental emergency drills.introduction to core topics such as methods for identifying

safety hazards practical on-site hazard inspections and

the proper management of hazardous waste. This training

not only effectively enhanced the environmental risk iden- Case Emergency Drill at Wastewater Treatment Plant Case Emergency Drill at Aluminum Shavings Tank Leak

tification and on-site management capabilities of frontline

employees and managers but also promoted the compa- On July 1st 2025 LONCIN and Zhongkang Environmental Protection conducted an On December 1st 2025 the Company organized an emergency response drill

ny-wide and standardized implementation of hazard iden- emergency drill for an oil-contaminated wastewater spill at the Zone C wastewater for an aluminum shavings leak. The drill simulated an emergency scenario

tification and rectification efforts. It further strengthened treatment plant. The drill simulated an emergency scenario in which maintenance involving a leak of cutting fluid mixed with aluminum shavings. Each special-

the Company’s awareness of its primary responsibility for work on workshop equipment caused an overflow in the high-concentration wastewa- ized team responded swiftly and coordinated effectively in accordance with

environmental protection and its compliance management ter pipeline network. Participants swiftly activated the emergency response plan and their assigned responsibilities systematically completing procedures such as

capabilities providing strong support for the ongoing de- carried out on-site response wastewater diversion and emergency monitoring in an reporting the incident activating emergency protocols containing the leak

velopment of a safe green and sustainable production orderly manner thereby promptly eliminating safety hazards and environmental pol- absorbing and collecting materials and properly disposing of subsequent

and operational environment. lution risks. This drill not only tested the feasibility of the emergency response plan and hazardous waste. This drill further strengthened the emergency response

the coordinated response capabilities of the emergency teams but also enhanced the skills of the personnel involved optimized team coordination processes and

participants’ risk awareness emergency response skills and the efficiency of inter-or- accumulated practical experience that will enable the Company to respond

ganizational coordination thereby laying a solid foundation for effectively addressing effectively to similar environmental emergencies and strengthen its environ-

various environmental emergencies in the future. mental safety defenses.30 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

Responding to Climate Change

Protecting Our EarthIn the context of the ongoing deepening of China’s “Carbon Peaking and Carbon Neu-trality” strategy LONCIN has established scientifically sound and actionable carbon Type of Risk Risk Impact Risk Adaptation / Opportunities

peaking and carbon neutrality targets actively responded to the TCFD framework to

enhance the quality of climate-related disclosures integrated climate risks into strate- Extreme weather events caused by climate change (such as heavy In terms of technology increased investment in the research and development of new energy

gic decision-making and operational processes and systematically advanced green- rains and hurricanes) may affect the Company’s ability to continue products—such as electric motorcycles and hybrid engines—will help reduce carbon emissions

house gas accounting and emissions reduction management. This series of initiatives Climate as a going concern and its assets; they may also lead to logistics and improve product reliability in adverse weather conditions

not only demonstrates our commitment to actively fulfilling our environmental respon- Risks delays which could result in transaction disputes; In terms of management enhanced employee labor protection measures—such as providing

sibilities but also focuses on effectively managing climate transition risks promoting Thunderstorms may cause localized signal disruptions affecting specialized protective equipment and conducting safety training—will ensure the health and

green technological innovation and operational efficiency thereby strengthening the the stability of production systems. safety of employees during extreme weather conditions.Company's long-term competitiveness amid the trend toward low-carbon transforma-

tion and ultimately achieving the harmonious development of sustainable growth and

climate resilience. In active response to the national “Carbon Peaking and Carbon Neutrality” policy and in ear-Under the “Carbon Peaking and Carbon Neutrality” goals nest implementation of the green and low-carbon development strategy the Company has

the policy framework is becoming increasingly robust and established a compliance monitoring and internal management system: * By establishing

1.“Carbon Peaking and Carbon countries are continuously introducing stricter environmen- a dedicated team or engaging professional third-party organizations the Company contin-tal policies and regulations. If the Company fails to com- uously tracks legislative developments and regulatory trends in key markets regarding car-Policy ply with regulatory policy requirements in a timely manner bon emissions reduction and renewable energy applications thereby providing a basis for Neutrality” Goals Risks strategic adjustments and mitigating compliance risks. * Improve the internal environmental compliance costs will increase; the Company may face pen- management system by transforming domestic and international statutory environmental re-

alties such as fines or production restrictions for exceed- quirements into clear internal corporate standards and operating procedures. Through a clear

In active response to the national “Carbon Peaking and Carbon Neutrality” strategy the ing carbon emission limits. All of these factors constrain the division of responsibilities break down compliance objectives to individual business units and

Company will continue to deepen its transition toward a green and low-carbon future Company's operations and development. specific positions to ensure that responsibilities are assigned to specific individuals.steadily advance greenhouse gas emission reduction efforts and contribute to the achieve-

ment of the national carbon peaking and carbon neutrality goals through a scientifically

sound and reasonable emissions reduction pathway. At the same time we have estab- Climate change and resource constraints impose heightened de- LONCIN actively addresses the risks associated with the iteration of low-carbon technolo-

lished clear emission reduction targets and are continuing to reduce Scope 1 and Scope 2 Technical mands on innovation in low-carbon technologies management

gies by establishing a multi-tiered collaborative innovation system. The Company continues to

greenhouse gas emissions. Risks and products and there is a risk of technological iteration in the

strengthen its strategic partnerships with leading domestic and international companies such

low-carbon transformation. as BMW as well as research institutions to jointly advance the research development and application of green technologies and smart mobility solutions.

2.Climate Risk Management

The global economic downturn may lead to a reduction in consum- Strengthen traditional markets such as Europe actively expand into emerging markets includ-

and TCFD Framework Response er demand for motorcycles and other products affecting the Com- ing Southeast Asia Africa and Central Asia and diversify geographically to mitigate the risks Economic pany's sales revenue; associated with economic fluctuations in any single market.Volatility Risks LONCIN as an export-oriented enterprise may be affected by ex- Utilize financial instruments such as forward foreign exchange contracts to hedge against

2.1 Corporate Governance change rate fluctuations in terms of competitiveness in the interna- some exchange rate risk and mitigate the impact of exchange rate fluctuations on operating tional market and profits. performance.

In response to global trends in climate governance LONCIN has integrated cli-

mate-related factors into its corporate strategic decision-making and risk manage- Market As consumers' environmental awareness grows they are increas-

ment systems. By adhering to the TCFD framework the Company systematically ingly inclined to choose low-carbon eco-friendly transportation and By promoting the “VOGE” brand’s image as a high-end smart and eco-friendly brand as well Demand

identifies and manages climate-related risks and opportunities continuously refines power solutions. Demand for traditional fossil fuel products may as the energy-saving features of company’s general-purpose machinery we aim to enhance the

its governance structure ensures the effective implementation and ongoing optimi- Fluctuation see a structural decline. This will result in lost orders and a decline brand’s reputation and customer loyalty within the low-carbon economy.zation of its climate strategy and enhances its long-term resilience and competitive- Risks in revenue.ness in the era of a low-carbon economy.The Company enhances supply chain efficiency and cost control by establishing long-term

2.2 Corporate Strategies Fluctuations in the availability and pricing of raw materials such as strategic partnerships with key suppliers fostering close collaboration and diversifying its Production steel rubber and plastics will expose the Company to supply risk. supply chain structure thereby mitigating the impact of imported inflation.

LONCIN has fully responded to global energy transition trends by incorporating green and Supply If changes in the international situation or natural disasters affect

When procuring core components the Company proactively integrates itself into suppliers’

the supply of raw materials resulting in a significant increase in production and quality control processes offering measures such as jointly developing and low-carbon development into its core strategy. By systematically planning the prices the Company's production costs will increase. production schedules and securing supply quotas in advance to ensure the stable delivery

transformation of new energy mobility and actively exploring product technology Chain Risks of critical resources. In response to fluctuations in raw material market prices the Company

upgrades the Company is committed to setting an industry benchmark for green employs a combination of annual framework agreements and flexible price adjustmentand low-carbon development and leading the industry toward achieving the “Car- mechanisms to effectively mitigate the operational pressures caused by cost volatility.bon Peaking and Carbon Neutrality” goals.31 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

2.3 Risk Management 2.4 Indicators and Targets

The Company has systematically established its own environmental risk management To systematically advance the transition to a green and low-carbon economy the Company has fully integrated carbon reduction targets into its development strategy. By establishing

system in accordance with relevant national and local laws regulations and technical clear reduction pathways and implementation plans the Company aims to significantly improve resource efficiency and reduce energy consumption. This series of initiatives has not

standards. This system adheres to the principles of prevention first tiered manage- only accelerated the Company’s own green transformation but has also provided substantial support for the achievement of the country’s “Carbon Peaking and Carbon Neutrality” goals

ment effective emergency response and continuous improvement. It aims to sys- demonstrating the Company’s proactive commitment and active contribution to addressing climate change.tematically identify scientifically assess and effectively prevent and control potential

risks of sudden environmental incidents in production and operations thereby ensur- Short-term objectives Medium-term objectives Long-term objectives

ing regional environmental safety.In terms of system development and organizational support Over the next three years the Company aims to steadily reduce the car- Over the next three to five years the Over the next decade the Company plans to gradually achieve bon intensity of Scope 1 and Scope 2 emissions and continue to increase Company plans to actively pursue re- a sustained reduction in Scope 1 Scope 2 and Scope 3 green-

The Company has established 14 policies and regulations including the Environmental theproportion of renewable energy used. ductions in absolute Scope 1 and Scope house gas emissions through the implementation of carbon off-

Protection Management System Regulations on the Management of Environmental At the same time it will strive to reduce the carbon intensity of Scope 2 carbon emissions and strive toower the set projects and deep decarbonization technologies.Pollution Incidents Hazardous Waste Management System and System for Rectifying 3 emissions and strengthen carbon reduction efforts in non-production carbon intensity of Scope 3 emissions; In the long term the Company will fully integrate sustainability

Environmental Risks and Hazards and has established a dedicated Safety and Envi- areas through initiatives such as green office practices and low-carbon It will also promote carbon emission re- principles into the management of the entire product lifecycle

ronmental Protection Department to oversee the Company’s safety and environmen- commuting. In particular the Company has established the following re- ductions in production processes through with a focus on reducing carbon emissions during the product’s newable energy targets: by 2026 green electricity will account for 30% measures such as continuously improv- use phase and strengthening the recycling system for end-of-

tal protection efforts. By establishing policies and setting up dedicated departments of total annual electricity consumption and by 2027 photovoltaic power ing energy efficiency. life products.the Company has systematically defined the environmental safety responsibilities of will account for 8% of total annual electricity consumption.employees at all levels thereby providing a solid organizational and institutional foun-

dation for the effective implementation of environmental risk management.During the risk identification and assessment phase

The Company comprehensively identifies environmental risk substances involved in 3.GHG Management

the entire production process in accordance with the List of Hazardous Chemicals:

first substances that may have a significant impact on the atmospheric environment LONCIN strictly complies with national laws and regulations including the Environmental Protection Law of the People’s Republic of China and actively supports the national “dual carbon” strategic

due to leakage volatilization or accidental release (such as paint solvents and natu- goals. Internally the Company has established systematic management systems including the internal systems such as the Wastewater Waste Gas and Solid Waste Management Measures the

ral gas); second substances that may enter water bodies through leakage and have Measures for the Prevention and Control of Waste Gas Pollution and the Measures for the Environmental Management of Related Parties in an effort to continuously refine its greenhouse gas

a significant impact on the aquatic environment (such as various pretreatment chem- (GHG) management mechanisms and facilitate its green low-carbon transition.icals oils and production wastewater). Based on this the Company identified and

delineated a total of 36 environmental risk units including raw material warehouses

fuel storage facilities painting workshops and wastewater treatment stations. It then 3.1 GHG-Related Data

conducted quantitative assessments in accordance with the Methodology for Classi- GHG Emissions in 2025

fying the Risks of Corporate Environmental Emergencies scientifically determining the

risk levels of corporate environmental emergencies and providing a solid foundation Indicator Unit FY2025 data 1Scope 1 emissions include greenhouse gas emissions from sources directly owned or controlled by the

for implementing differentiated and targeted environmental risk prevention and con- Company which are primarily direct emissions of fuels such as natural gas and gasoline. Emission fac-

trol measures. Scope 1 GHG emissions 1 tCO?e 17992.27 tors are sourced from the National Greenhouse Gas Emission Factor Database.In terms of risk prevention and control measures Scope 2 GHG emissions 2 tCO?e 56109.36 2Scope 2 emissions consist of indirect emissions from purchased energy primarily from purchased elec-tricity. Emission factor data for electricity is sourced from the average emission coefficients of the State

The Company has implemented a “three-tier prevention and control” strategy tailored

to different risk units. Level 1 prevention focuses on management achieving daily Scope 3 GHG emissions 3 tCO?e 53612.84

Grid.oversight through regular inspections risk signage video surveillance and the posting 3Scope 3 emissions cover Category 1 — Purchased goods and services Category 3 — Fuel- and ener-Total GHG emissions tCO?e 127714.47 gy-related.of regulations; Level 2 prevention involves engineering containment measures such

as installing spill containment trays berms and collection channels in critical areas like

chemical and fuel storage facilities to prevent the spread of leaks; Level 3 prevention

focuses on emergency response and collection with emergency supplies such as fire 3.2 GHG Emission Reduction Measures

sand and absorbent pads on hand to ensure that pollutants can be promptly con-

tained and collected in the event of an accident. In promoting low-carbon office practices we advocate for paperless office and digital meetings to reduce the circulation and use of paper documents and also reduce office resource con-

sumption through measures such as double-sided printing and optimized paper usage. At the same time we promote the use of high-efficiency office equipment such as energy-efficient

air-conditioners and energy-efficient computers to reduce energy consumption in the office area thereby cutting down greenhouse gas emissions. Additionally we encourage employees

to choose electric vehicles over traditional gasoline-powered vehicles for commuting helping to reduce carbon emissions from daily commuting.In 2025 the number of electric vehicles held by employees was 437 an increase of 12.92% compared with 2024 while the number of gasoline-powered vehicles held by employees re-

duced by 3.17% during the same period resulting in a significant decrease in carbon emissions from employee commuting.32 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

Green Operations and Low-carbon Production

Through systematic measures such as implementing refined energy management promoting water recycling strict-

ly controlling pollutant emissions and carrying out ecological transformation of the industrial park the Company has 1.1 Data

effectively reduced the environmental burden arising from its operations. This has not only comprehensively improved Table of the Company’s Energy Consumption Between 2023 and 2025

resource utilization efficiency and ecological resilience but has also established a responsible corporate image through

solid ecological practices thereby gradually building a sustainable development model with long-term competitiveness Indicator Unit FY2025 FY2024 FY2023

amid the trend toward green industrial transformation.Purchased electricity Ten Thousand Kilowatt

We have worked hard to reduce resource consumption to the greatest extent at all stages of production for less impact Hours 10574.70 12636.45 10686.08

on the environment including the management and emission reduction of greenhouse gas water resource conservation Density of electricity Kilowatt Hours/RMB Ten 55.26 75.121 81.78

and recycling and the emission reduction of waste and volatile organic compounds etc. In 2025 we invested a total of consumption Thousand

RMB 10.6822 million in environmental protection an increase of 13.52% compared with 2024 of which RMB 2.6134 million Gas consumption Ten Thousand Cubic Meters 880.00 861.48 686.80

was allocated to environmental protection equipment and RMB 8.0688 million was allocated to environmental protection Density of gas Cubic meter/RMB Ten

operations. consumption Thousand 4.60 5.122 5.26

Gasoline consumption Liter 185602.74 372966.00 443053.00

2025 Density of gasoline

consumption Liter/RMB Ten Thousand 0.10 0.22 0.34

Environmental Environmental protection Environmental protection 1The density of electricity consumption in FY2024 is based on data adjusted to a uniform standard.protection equipment operations 2The density of gas consumption in FY2024 is based on data adjusted to a uniform standard.

10.6822 million 2.6134 million 8.0688 million 1.2 Energy-Saving Reconstruction

Adhering to the philosophy of green development the Company regards energy conservation and carbon reduction as core tasks for sus-

tainable development. It systematically advances energy-saving technological upgrades across the industrial chain with a focus on improv-

Environmental Protection Investment Between 2023 and 2025 ing energy efficiency and reducing carbon emission intensity and actively explores green low-carbon production and operation models.Indicator Unit FY2025 FY2024 FY2023

Environmental protection RMB Ten 1068.22 940.99 880.00

investment Thousand Case Technical Solution Design for BOT Projects

The compressed air station of BOT projects is upgraded and adopts high-efficiency energy-saving screw-type air compressors

equipped with variable frequency control systems effectively reducing energy consumption while ensuring stable operation. The

1.Energy Management IoT monitoring modules are added to achieve real-time data collection remote monitoring and intelligent early warning. Mean-while an intelligent management platform is established to optimize equipment start-up shutdown and load distribution based

on data analysis thereby reducing idle operation and enabling real-time monitoring via mobile devices. A waste heat recovery

system is also available for selection to convert waste heat from the air compressors into heating or hot water for the factory

To further make energy management standardized and institutional in the Company’s production process the Company has thereby further improving overall energy utilization efficiency. Following the reconstruction electricity costs were reduced by

worked out the Energy Management Measures Equipment and Special Equipment Management Measures and other relevant RMB 1.8 million in 2025 with energy savings reaching 3 million kilowatt hours. This initiative significantly reduced overall operat-

systems. Moreover the Company's Energy Efficient Production Leadership Group has given full play to its leadership role to fur- ing costs while simultaneously enhancing system safety and energy efficiency.ther establish and improve the energy efficient production mechanism and implement the energy efficient production policies

and goals among others.33 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

2.Water Management 3.Pollutant Emission Management

LONCIN strictly complies with national laws and regulations such as the Water Pollution Prevention and Control Law of the People's Republic of The Company strictly complies with national and local environmental protection laws regulations and emission standards systematically

China the Environmental Protection Law of the People's Republic of China and the Circular Economy Promotion Law of the People's Republic establishes a comprehensive pollution prevention and control management framework covering environmental factors such as waste

of China and establishes internal systems such as the Wastewater Waste Gas and Solid Waste Management Measures the Drinking Water gas wastewater solid waste and noise. It has formulated and implemented a series of internal management systems such as the

Management Measures and the Wastewater Discharge Management Measures to systematically advance the fulfillment of water conserva- Measures for the Prevention and Control of Waste Gas Pollution the Wastewater Discharge Management Measures the Hazardous

tion goals strengthen water management and standardize wastewater treatment processes. Waste Management Measures and the General Industrial Solid Waste Management Measures. Through institutionalized management it

is committed to continuously reducing the environmental impact of its production and business operations fulfilling its social responsibilities

for realizing corporate sustainable development and advancing ecological civilization.

2.1 Water Management Objectives

The Company energetically implements effective water management measures to improve water utilization efficiency and raise em- 3.1 Waste Gas Pollution Prevention and Control

ployees’ awareness of water conservation to reduce the Company’s water consumption and wastewater discharge thereby ensuring

its sustainable development meanwhile proactively fulfilling its social responsibilities and making a positive contribution to the pro- To standardize the management of waste gas emissions and mitigate the impact of pollution LONCIN has established the

tection of water resources and the ecological environment. In 2025 the total volume of water circulated through the Company’s com- Measures for the Prevention and Control of Waste Gas Pollution which clearly define the control requirements for waste gas

pressed air stations and cooling towers of all workshops was 7.128 million tons. emissions during production and raw material storage for the Company and its subordinate units including the followings:

Responsibilities are clearly delineated with each unit being responsible for managing waste gas from production

2.2 Data Division of and exhaust gas from mobile sources within the area under its administration and the Safety and Environmental responsibilities Protection Department being responsible for coordinating the treatment of kitchen fumes monitoring coordination

and supervision and inspection.Water Resource Data of the Company Between 2023 and 2025

Prevention and For dust generated during the production process waste gas from painting and boilers kitchen fumes waste gas

control of waste gas from furnaces and exhaust gas from mobile sources the prevention and control measures are implemented from Indicator Unit FY2025 FY2024 FY2023 generated during the multiple aspects including process design procurement of low-pollution raw materials operation and maintenance of treatment facilities and standardized management of emission outlets and priority is given to the selection of

Total water consumption Ten Thousand Tons 116.21 114.76 99.44 production process sealed processes and electric vehicles and the enhancement of personnel protection.Intensity of water Tons/RMB Ten Thousand

consumption 0.61 0.01 0.76 The Company establishes regular monitoring and emergency response mechanisms and commissions a third-party agency to conduct testing and install online monitoring equipment. Production is immediately suspended for rec-

Total wastewater Ten Thousand Tons 62.51 50.03 56.10 Monitoring and tification in the event of emissions exceeding standards and complaints are addressed promptly. By combining generated

supervision self-inspections by each unit with monthly inspections by the Safety and Environmental Protection Department Intensity of wastewater Tons/RMB Ten Thousand 0.33 0.30 0.43 supplemented by complete operation and maintenance records the Company ensures the effective operation and discharge continuous improvement of the waste gas management system thereby fulfilling its environmental responsibilities.

3.2 Wastewater Discharge Management

2.3 Wastewater Discharge Reduction Measures

The Company has explicitly defined what production wastewater and domestic wastewater are and has delineated the division

All wastewater generated by various production processes and living quarters in the factory is collected through a pipeline network and of responsibilities of each unit and the Safety and Environmental Protection Department aiming to continuously reduce environ-

transported to the factory’s wastewater treatment station for centralized treatment specifically including wastewater from die-cast- mental impact and improve overall environmental performance by standardizing the management of production and domestic

ing demoulding wastewater from painting and cleaning wastewater from machining emulsion oily wastewater from engine testing wastewater discharge. Specific initiatives include oil-water separation and filtration pretreatment of production wastewater (such

domestic wastewater etc. The treatment station is equipped with advanced facilities and possesses the comprehensive capability to as cutting fluids and emulsions) the treatment of domestic wastewater before being discharged into the municipal sewer sys-

treat various types of wastewater through advanced treatment processes with a maximum design capacity of 150 tons per hour. After tem formulating a wastewater pipeline network map and standardizing emission outlet management prohibiting unauthorized

treatment the effluent is discharged into the wastewater pipeline network of the industrial park only after consistently reaching the modifications to the pipeline network and the dumping of solid waste ensuring compliance with discharge standards through

Tier 3 discharge standard thus effectively reducing the impact on environment. internal self-inspections departmental supervision and inspections and third-party monitoring and establishing abnormality re-porting and emergency response mechanisms to prevent pollutant dispersion. In the meantime it is required to keep record of the

operation and maintenance of wastewater treatment facilities to ensure process traceability. This management framework sys-

tematically covers the entire process from wastewater generation pretreatment treatment discharge monitoring to emergency

response forming a complete closed-loop management chain.34 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

3.3 Solid Waste 4.Biodiversity Conservation

The Company stores general industrial solid waste by category and sets environmental protection labels with storage sites imple- In active response to the national biodiversity conservation strategy LONCIN integrates biodiversity conservation into its corporate develop-

menting comprehensive measures to prevent leakage dispersion and loss and conducting regular inspections and maintenance ment agenda. It formulates the Implementation Rules for Greening Maintenance Management applicable to the placement and maintenance

of relevant facilities. During the treatment and disposal phases priority is given to recycling and reuse to minimize environmen- management of indoor and outdoor plants in the industrial park and the maintenance of an amicable green environment in the industrial park

tal pollution. The Company organizes competitive bidding of recyclable waste by category enters into contracts with qualified reclaims vacant land plants trees and builds ecological corridors to expand ecological space and enrich habitats and meanwhile reduces the

disposal entities clearly defines pollution prevention and control responsibilities and supervises and reports the whole process use of glass curtain walls in architectural design to mitigate the risk of bird impacts thereby effectively preserving species diversity.including transportation utilization and disposal. Regarding record-keeping waste-generating units establish and refine manage-

ment ledgers and submit reports on a monthly basis. Meanwhile on-site self-inspections and self-assessments of storage sites

are conducted on a monthly basis with the Safety and Environmental Protection Department performing quarterly supervisory

inspections and keeping records thereby establishing a closed-loop management system covering the entire process.Case Public Welfare Initiative on the Tree Planting Day Themed “Green Power SystemsEco-Friendly Future”

3.3 Hazardous Waste To thoroughly implement the philosophy of green development and fulfill corporate social responsibility the general Party branch committees of LONCIN organized and launched a public welfare initiative on the Tree Planting Day themed “GreenPower Systems Eco-Friendly Future” on March 12th 2025. Members of the general Party branch committees and Party

The Company clarifies the specific responsibilities of each waste-generating unit in terms of the classification collection safe member representatives of each Party branch gathered at Group 1 Wugen Village Bafu Town contributing to ecological

transfer and expenses associated with hazardous waste and the Safety and Environmental Protection Department is responsible construction through concrete actions. At the event site participants worked together in an orderly manner digging holes

for daily supervision. At the operational level the Company puts forward specific technical requirements for the classification with shovels planting saplings backfilling soil and watering the trees to ensure they took root. In total more than 40 sap-

packaging and temporary storage of hazardous waste. To ensure effective implementation of policies it establishes a mecha- lings were planted creating a green barrier that contributes to regional ecological restoration and vegetation recovery. This

nism for self-inspections and joint inspections and defines corresponding penalties for violations such as the mixed storage of event not only strengthened employees’ awareness of ecological conservation but also conveyed the concept of ecological

hazardous waste non-compliant disposal and false reporting or concealment. Through standardized processes clear division of civilization through practical action demonstrating the Company’s commitment to promoting low-carbon development and

responsibilities and closed-loop supervision mechanisms under this framework the Company achieves full compliance and safe jointly building an eco-friendly future.controllable management of hazardous waste throughout the entire process.Waste Emission Data Between 2023 and 2025

Indicator Unit FY2025 FY2024 FY2023

Total general solid waste Tons 626.16 448.81 189.00

Emission intensity of general solid

waste Tons/RMB Million 0.03 0.03 0.01

Total recycling of general solid 626.16 448.81 189.00

waste Tons

Total emission of hazardous waste Tons 5607.87 4630.25 487.99

Emission intensity of hazardous

waste Tons/RMB Million 0.29 0.28 0.0335 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

Continuous Innovation-Driven Green Development

To achieve the balanced development of economic and environmental benefits the Com-

pany insists on advancing its sustainable development strategy through a systematic ap- 1.3 “Zero-Waste Factory” in

proach which is specifically manifested in the construction of green factories as the basic Chongqing

carrier the development of new energy products as the core direction and the use of clean

energy as the key pillar. This comprehensive approach has not only significantly reduced the As the Chongqing Municipality is vigorously promoting the construction of

carbon footprint and resource consumption in corporation operations but has also enabled a “zero-waste city” LONCIN actively responds to policy calls takes the con-

the Company to build differentiated green competitiveness in the industrial chain. Further- struction of a “zero-waste factory” as its top priority and comprehensively

more it provides the industry with a replicable path for green transformation and effectively advances green production practices through the establishment of a dedi-

supports society in achieving the coordinated development of economic growth and ecolog- cated leadership group systematical arrangement and meticulous organi-

ical conservation. zation. Starting from the source the Company has vigorously implemented

production process innovations introduced intelligent manufacturing and

automatic equipment and achieved precise control over production process-

1.Green Factory Practice es and refined management of raw materials effectively reducing material U-shaped Production Line waste. At the same time it takes the initiative in selecting eco-friendly mate-

rials and optimizing manufacturing processes which significantly improves

1.2 Environmental Protection Equipment material utilization rates and reducing waste generation at the source.1.1 “National Green Factory”

In terms of waste treatment and resource recycling LONCIN establishes a

Through its in-depth development and practices in the green manufacturing field LONCIN In recent years the Company has placed great emphasis on environmental protec- comprehensive system for sorted collection and high-value recycling con-

has obtained the “National Green Factory” certification. With the vision of “A Leading Brand tion and sustainable development and continuously increased investment in environ- ducts precise disposal of industrial solid waste hazardous waste and house-with Low-carbon Power System and Intelligent Products” the Company takes green devel- mental protection facilities and technology upgrades. In 2025 it implemented multi- hold garbage and achieves efficient resource recovery through professional

opment as the cornerstone of its high-quality growth. It systematically advances the con- ple environmental improvement projects focused on key areas such as wastewater cooperation and its own facilities. The Company also constructs an industrial

struction of green factories establishing a low-carbon circular manufacturing system that is treatment waste gas treatment and workshop environmental enhancement. These chain for resource recycling utilizing technologies such as advanced waste-

resource-efficient and environmentally friendly in multiple dimensions. initiatives included installing an automatic control system for the wastewater treat- water treatment and waste heat recovery to achieve the recycling use of

ment station upgrading waste gas treatment equipment adding integrated grinding resources like water and energy. These initiatives have not only improved

LONCIN took the lead in introducing and promoting the U-shaped production line layout in its platforms and replacing filter cartridges with high-efficiency ones. energy conservation emissions reduction and resource utilization efficiency

manufacturing system achieving dual improvements in spatial structure optimization and within the Company but have also facilitated and played a leading role in

production process coordination. In terms of equipment layout the U-shaped production line Among these the 12 newly installed integrated grinding platforms can control dust the industry’s green transformation through experience sharing and supply

effectively shortens the distance materials and semi-finished products flow between pro- directly at the source which effectively prevent dust dispersion and significantly im- chain collaboration.cesses by closely linking equipment across each process step which avoids wasting space prove air quality of workshops by capturing and filtering dust at the grinding points in

caused by long-distance transport channels in traditional linear layouts and significantly im- real time. In addition the Company upgraded its environmental protection equipment

proves the overall utilization of factory space. In terms of staffing and space utilization the for drying waste gas and replaced it with high-efficiency Donaldson filter cartridges

U-shaped production line supports the efficient “one-person-multiple-machine” operation which enabled more efficient purification of organic waste gas and welding fumes

model. Operators can operate multiple equipment in a limited area drastically reducing both generated during the production process and substantially improved the treatment

the travel distance and the area of scattered operations. This not only boosts labor produc- efficiency of waste gas. These measures collectively drive the Company’s transition

tivity but also reduces the need for dispersed workspaces further narrowing down non-pro- from an “end-of-pipe treatment” model to an environmental protection model cen-

ductive floor space and enabling the intensive use of both human and spatial resources. tered on “source control and process management.”

Through the reasonable division of functional zones and optimized workshop design LON- The relevant initiatives have not only enhanced pollutant control capabilities and en-

CIN organically integrates production processes such as components and parts processing sured compliance with production emission standards but have also further improved

and complete vehicle assembly which reduces the space redundancy in the process and the factory environment and demonstrated the Company’s resolve to actively fulfil its

enables more efficient production activities per unit of land. This not only aligns with the social responsibilities promote green manufacturing and achieve high-quality devel-

core requirements of resource recycling in green development but also lays a solid spatial opment. In 2025 its total investment in environmental protection equipment was RMB

foundation for the Company’s sustainable operations. 2.6134 million. Looking to the future the Company will unswervingly uphold the philos-

ophy of environmental protection refine its environmental management system and

contribute to the advancement of ecological civilization. Factory Site36 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

1.4 Green Logistics 2.1 Hydrogen-Powered All-Terrain Vehicle 2.2 Hybrid Scooter SR150GT H

Currently in the process of comprehensively advancing the development The Company makes active efforts to engage in the preparatory research layout of a The SR150GT H Model of the first mass-produced hybrid scooter in China launched by the

of a green manufacturing system green logistics is a vital link connecting hydrogen fuel-cell all-terrain vehicle designed for special scenarios such as outdoor op- Company represents a technology breakthrough and innovative practice in the field of en-

the internal and external operations of green factories and is of systemat- erations and emergency rescue with hydrogen as the power source and the advantages ergy conservation and emissions reduction for motorcycles. Equipped with China’s first-of-

ic value for achieving environmentally friendly production throughout the of zero emissions and extended range. Equipped with a high-efficiency hydrogen fuel-cell its-kind 48V hybrid system the vehicle features several core patented technologies with a

full lifecycle. By optimizing resource allocation and reducing environmental system the vehicle achieves zero carbon emissions compared to traditional gasoline-pow- focus on energy efficiency and low-temperature adaptability: * A battery heating system.burden the Company supports green factories in achieving their clean pro- ered all-terrain vehicles and delivers a 20% or greater improvement in power response As the only brand in China to equip a motorcycle with such a system the Company ensures

duction goals thereby providing sustained momentum for corporate sus- which can also operate stably on complex terrains such as mountains and forests pro- stable operation even in extreme cold down to -20°C. * Enhanced charging efficiency which

tainable operations. viding a reliable green power solution for scenarios where outdoor energy replenishment reduces energy loss during battery charging. * Dynamic power output adjustment which is

is difficult. The successful research and application of this technology effectively resolves a technology exclusive to Wuji in China and can intelligently adjust the degree of motor assis-

At the level of resource recycling and efficiency improvement green logistics energy supply issues for all-terrain vehicles during high-intensity operations and offers tance based on the user’s actual riding situation. Moreover the hybrid system of the vehicle

significantly reduces energy consumption and resource waste in logistics new insights into future green mobility solutions. Given that the hydrogen energy industry features the WMTC circulation function which can recuperate energy during the vehicle’s

activities by adopting low-carbon transportation modes such as rail and sea is still in the developmental stage in terms of costs infrastructure and large-scale applica- coasting and braking and improve charging efficiency and energy storage performance of-

freight and combining with multimodal transport to optimize network lay- tion the Company will continuously keep track of technology advancements and prudently fering a new solution for low-carbon mobility.outs. The Company consolidates transportation needs and optimizes route evaluate the feasibility of commercial production based on actual conditions.planning to improve vehicle utilization efficiency and reduce empty-loaded

rates enabling more precise resource allocation and creating synergy with

the green factory’s goal of efficient resource utilization.Regarding green packaging the Company promotes the use of recyclable

cardboard boxes as packaging materials for products such as motorcycles

engines and general machinery which is a common practice for reducing

waste generation and minimizing environmental impact. Such packaging

not only enables the recycling and regeneration of used packaging through

specialized channels creating a closed-loop resource system but also re-

duces the Company’s procurement costs of raw materials to some extent

thereby unifying environmental benefits with economic performance. In

2025 LONCIN adopted recyclable cardboard boxes for packaging motor-

cycles engines and general machinery products including 1.317 million

motorcycles 3.3495 million engines and 3.3223 units of general machin- Hydrogen-Powered All-Terrain Vehicle Hybrid Scooter SR150GT H

ery. A total of 6596914 cardboard boxes 1385307 wooden pallets and

7846308 plastic crates were used with 4469662 units recycled effec-

tively improving the packaging recycling rate.

2.3 EP350 Portable Power Station

2.Green Product Innovation The EHOM EP350 portable power station of LONCIN stood out for its innova-

tive design and won the 2025 Red Dot Award for Product Design. This prod-

The Company takes leading the sustainable development as its respon- uct achieves breakthroughs in energy efficiency and sustainability: equipped

sibility and is dedicated to developing and promoting green new energy with an advanced battery management system and efficient heat dissipation

products. To follow the global energy transition trend we actively explore technologies it utilizes a cross-flow fan and natural-color injection molding to

innovative technologies and are committed to providing environmentally significantly improve heat dissipation and reduce energy consumption during

friendly efficient and reliable clean energy solutions. By integrating ad- operation. The EP350 adheres to the principles of green manufacturing uti-

vanced concepts and technologies the Company continuously enriches lizing eco-friendly materials and a V0-grade flame-retardant shell. Combined

its product matrix to meet diverse market demands. We are dedicated to with automotive-grade battery cells and high-capacity lithium batteries it

collaborating with all sectors of society to jointly promote the widespread ensures product safety and durability while significantly reducing its carbon

application of green energy and contribute to creating a cleaner more sus- footprint and resource consumption. The EP350 Won the EP350 Portable Power Station Product

tainable future. 2025 Red Dot Award37 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Green Intelligent Manufacturing Leading the Low-Carbon Transformation

2.4 DS800X Rally Product 2.6 LONCIN Successfully Ignited

Lightweight Design the GDI Engine

The LONCIN DS800X Rally integrates the philosophy of environmental protec- LONCIN successfully ignited the first GDI (Gasoline Direct Injection) engine

tion into systematic lightweight design and material innovation. The vehicle in China’s motorcycle industry which is the achievement of six months of

uses aluminum for key components such as swingarm and side stands which round-the-clock endeavors of more than 20 technical research engineers

are more than 25% lighter than comparable steel parts resulting in a curb of the Company symbolizes a significant breakthrough in the localization

weight of 248 kg. This comprehensive lightweight design directly reduces gas- and cleanliness of China’s motorcycle engine technology and demonstratesoline consumption and carbon emissions effectively alleviating environmental the Company’s commitment to its brand vision of “A Leading Brand withpressure. Additionally the body panels utilize new high-toughness materials Low-carbon Power System and Intelligent Products.”

enhancing the vehicle’s impact resistance and thereby reducing the frequency

of replacement for vulnerable parts and lowering maintenance costs. The use Facing technical challenges such as high engine speeds and compact space

DS800X Rally Product of rotomolded materials such as HDPE improves the recyclability of compo-

constraints in motorcycles the Company’s team spared no efforts to make

nents and promotes resource recycling. From production and use to recycling breakthroughs in four core technologies: optimizing the combustion sys-the DS800X Rally employs an integrated design philosophy of “lightweight du- tem adapting to high-speed operating conditions streamlining the overallrability and recyclability” which not only enhances product performance and structure and ensuring reliability through CAE simulation. All this not only

economic efficiency but also significantly reduces the vehicle’s environmental aligns with the industry trend toward higher power lower fuel consumption

footprint across its entire lifecycle and demonstrates the value of sustainable and lower emissions in the internal combustion engine sector but also lays

mobility for the future. a solid foundation for the Company to seize technological leadership and

LONCIN Successfully Ignited the GDI Engine

support the transformation and upgrading of China’s motorcycle industry.

2.5 XWolf 1000Mud All-Terrain Vehicle 3.Clean Energy

The Company focused on the coordinated development of high performance Application

and environmental friendliness and launched the XWolf 1000Mud all-terrain

In respect of low-carbon energy LONCIN

vehicle. Equipped with an intelligent power distribution system and a full-

has actively laid solar photovoltaic panels

torque transmission system the vehicle achieves efficient power utilization

on the roofs of the factory vacant land

through high torque output at low RPM. Combined with the optimized thermal

and other areas to make full use of re-

management design it enhances engine operating efficiency and energy con-

newable energy sources. Currently the

sumption performance. At the same time it strictly adheres to global environ-

photovoltaic power generation capacities

mental standards having passed the U.S. Environmental Protection Agency’s

are 1260.80 kWh per day and 2795.68

XWolf 1000Mud (Mud Edition) (EPA) emissions certification the California Air Resources Board’s (CARB) fuel kWh per month the cumulative photovol-

All-Terrain Vehicle Product vapor emissions standards and the EU T3 emissions certification and putting taic power generation capacity is 843.90

the concept of green research and development into practice. By enhancing

MWh and the cumulative carbon emission

off-road performance and adaptability to complex terrains while balancing

reduction is 229.54 tons. Overview of Photovoltaic Power Generation Data

energy efficiency optimization and environmental compliance the Company

made efforts to create green products with outstanding performance and sus-

tainability.38 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

04

People-Oriented

Development for Social

Harmony

01/ Employee Empowerment and Value Realization 39

02/ Warm Care Greater Happiness 41

03/ Life First Safety Foremost 44

04/ United in Purpose Spreading LONCIN’s Warmth 46

Response to the United Nations SDGs:39 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

Employee Empowerment and Value

Realization

LONCIN adheres to the concept of “people-oriented” and is committed to fostering an open and col-

laborative organizational environment with mutual trust and care. The Company regards talent devel-

opment as the cornerstone of corporate growth. By providing comprehensive career paths integrat-

ing training resources and fostering an innovative atmosphere it provides employees with a broad

platform for development while prioritizing work-life balance and mental well-being. Through concrete

actions LONCIN practices the concept that “talent is the primary resource” respects and safeguards

employees’ rights and interests and promotes mutual growth and win-win development of employees

and the Company.

1.Employment

LONCIN strictly abides by the Labor Law of the People's Republic of China the Law of the People's Republic

of China on the Protection of Minors and other national laws and regulations and based on the realities of

corporate management has formulated and issued the internal systems such as the Employment Contract

Management Practices and the Recruitment and Hiring Management Practices which comprehensively in-

volve key management areas including personnel employment remuneration and benefits assessment and

promotion and separation from service. On this basis the Company has established a standardized and or-

derly human resources management framework.The Company has always regarded “fairness and justice” as the core principle of corporate culture and internal

management which serves not only as a crucial prerequisite for safeguarding the basic rights and interests

of employees but also as a solid foundation for sustainable development of the Company. In its daily opera- 2025 Employee Distribution 2025 Employee 2025 Employee Distribution 2025 Employee Distribution

tions the Company strictly fulfills national legal requirements regarding remuneration payment leaves and by Gender Distribution by Age by Education by Position

vacations welfare benefits occupational safety and health social insurance etc. and fully guarantees the

legitimate rights and interests of employees. Throughout the entire management process including employee (Unit: %) (Unit: %) (Unit: %) (Unit: %)

recruitment promotion and remuneration determination the Company consistently upholds objective and 2%

uniform evaluation criteria resolutely eliminates all forms of bias and discrimination and rigorously enforces 8%17% 15% 1%

regulations prohibiting the employment of child labor the hiring of minors aged under 16 (including interns) 23% 3%3%

strictly prohibits forced labor and opposes any form of differential treatment. Meanwhile it effectively ensures 28%

equal pay for equal work between men and women standardizes working hour management and ensures 6%

that the entire employment process is lawful compliant fair and transparent. In 2025 it continuously ad-

vanced the development of a diversified workforce system. 15%

16%

29%

67%63%72%

202531%

Master's degree and above Production staff Administrative staff

Currently there are 102 veterans and 14 employees with As of the end of the reporting period Male Female Aged under 30 Aged 30-40 Bachelor's degree Sales staff Management cadres

disabilities among the workforce fully demonstrating the there were a total of Aged 40-50 Aged 50 and Junior college Technicians Financial staff

Company’s high emphasis on fulfilling social responsibil- above Secondary vocational schol/High

ities and deepening its commitment to humanistic care. 10348 school and below Other staffemployees

Employee Composition and Distribution40 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

2.Employee Development

Through a systematic promotion mechanism and a diverse training system LONCIN continuously empowers employee growth laying a solid foundation for talents available for the Company’s high-quality development.

2.1 Employee Promotion 2.2 Employee TrainingLONCIN establishes a dual-track career development system consisting of “the man- LONCIN adheres to the development concept that "talent is the primary re-agement track and the professional track” to systematically promote employee ad- source" places employee growth at the core of corporate strategy and is

vancement and growth. This system is performance-driven and covers all positions committed to building a comprehensive hierarchical and classified talent

within the Company aiming to achieve the goals of producing a steady stream of training system. Centering on multiple dimensions such as the improvement

excellent leaders and a steady stream of excellent employees. Under this dual-track of professional skills advancement of management capabilities develop-

mechanism employees may opt for the vertical development on the management ment of leadership and cross-domain collaboration the Company system-

track or the improvement of their professional skills in various specialized fields en- atically carries out regular and diversified training programs with a total

abling both horizontal and vertical career advancement. The Company implements special training fund investment of RMB 2.8409 million for the whole year

a dynamic development mechanism that allows for promotion and demotion lateral providing solid support for talent development.transfers and hiring and separation ensuring flexibility in talent flow and the contin-

uous stimulation of organizational vitality. Additionally to enhance employees’ pro- In 2025 the Company continued to strengthen its training system and its im-

fessional skills LONCIN has partnered with institutions such as the Chongqing Me- plementation delivering a total of 4369 employee training courses through-

chanical Technician College to conduct vocational skills training in a bid to provide out the year and accumulating 25870 training hours. Through a systemat-

institutional safeguards and practical support for employees’ career development ic and full-coverage training mechanism the Company has empowered all

and further solidify the foundation for talent echelon construction. positions from frontline employees to the management team with the per

capita training duration reaching 2.50 hours. This series of measures has

The Company places great emphasis on young talent cultivation and talent echelon effectively stimulated employees' potential clearly planned career devel-

construction. To strengthen the talent foundation for strategy implementation and opment paths not only promoted the improvement of employees' personal

build a high-caliber workforce it has launched the U30 Young Talent Development values but also forged a talent team with a reasonable structure and excel-

Program with a focus on exploring and nurturing elite employees aged under 30. lent quality for the Company injecting sustained impetus into the high-qual-

The program is open to all employees with selection based on core criteria including Employee Career Development Paths ity development of the enterprise.basic qualifications work performance capabilities and potential. It aims to pick

out young talents with professional quality professional proficiency and develop-

ment potential. In 2025 the Company rigorously selected 50 outstanding young em- 2025

ployees from 175 candidates to join the talent echelon. It established a systematic

training system targeted at the selected young talents and conducted specialized

training for them by considering the Company’s strategic planning business and op- Special training fund Employee training Throughout the year The per capita training

erating needs and personal development goals of employees. Through the provision courses and accumulating duration reaching

of a tiered training and development mechanism the Company fully stimulated the

innovative vitality and growth potential of young employees built a pool of core

young talents to support its sustainable development and promoted mutual growth RMB 2.8409 million 4369 sessions 25870 hours 2.50 hours

between young employees and the Company.41 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

Warm Care Greater Happiness

Case Improvement of Employee Workwear Meals Accommodation and Commuting

LONCIN adheres to the concept of “people-oriented” committed to fostering an To genuinely enhance employees’ quality of life and well-being and to foster a harmonious and

open collaborative warm and inclusive organizational environment. Through stable working environment LONCIN has launched a series of improvement initiatives focused on

comprehensive employee welfare programs and a rich array of cultural activities employees’ daily needs—covering workwear meals accommodation commuting and the overall

the Company strengthens employees’ sense of belonging and enables mutual campus environment.growth between employees and the organization.Workwear：The Company has rolled out new uniforms for all employees to improve comfort and

partnered with a professional laundry service to offer free cleaning of work uniforms.

1.Employee Benefits and Care Meals：After extensive employee feedback the Company brought its staff canteen—previously outsourced for ten years—back under direct management and invested in a full-scale renovation

LONCIN has formulated the Employee Welfare Management Measures to ensure to significantly elevate both food quality and dining experience. Additionally the Company trans-

sustained care for its employees through institutionalized arrangements. The Com- formed approximately 4000 square meters of idle land into a vibrant vegetable garden—plant-

pany consistently places the well-being of all employees first integrates humanistic ed and harvested by employees themselves—creating LONCIN’s signature “Happy Farm” to supply

care into its corporate culture and maintains long-term attention to employees’ fresh healthy and eco-friendly produce.daily lives physical health and mental well-being delivering warmth through sys- Accommodation：Addressing dormitories over ten years old with outdated facilities the Company

tematic employee care programs and precision-targeted assistance. The Company has invested hundreds of millions of RMB in comprehensive renovation and reconstruction dramat-

regularly carries out special care initiatives—such as the “Cooling Relief” outreach ically improving living conditions and residential experience for employees.during hot seasons and assistance programs for employees in hardship before the

Spring Festival—responding effectively to employee needs through material sup- Commuting：he Company has replaced all employee shuttle buses with vehicles operated by

port and financial aid. Chongqing Public Transport Group equipped with enhanced safety management systems and re-

al-time in-vehicle monitoring to strengthen commuting safety.The Company has formulated the Implementation Rules for the LONCIN Union

Warmth Initiative providing comprehensive care across all scenarios—including

holiday greetings on statutory festivals birthday acknowledgments autumn edu-

cational assistance and support for serious illnesses or disaster-related emergen-

cies—and implementing categorized tiered and precision-targeted aid for employ- In terms of environmental enhancement

ees in difficulty thereby effectively safeguarding employee rights reflecting the the Company has organized tree-planting

Company’s caring spirit and continuously building a warm reliable employee care and greening initiatives to continuously im-

system. prove the campus ecosystem; it has also

To strengthen a sustainable incentive mechanism energize core teams and pro- established a “Workers’ Orchard” open for

mote mutual growth between the Company and its employees LONCIN launched fruit-picking by outstanding frontline pro-

its third Employee Stock Ownership Plan (ESOP) during the reporting period and duction staff enabling employees to share

completed all required approval procedures with a total scale of approximately in the fruits of corporate growth and ecolog-

RMB 400 million. This marks the Company’s first major long-term employee incen- ical development.tive initiative in eight years designed to further energize the motivation and cre-

ativity of senior management and key personnel attract and retain top talent and Through these integrated initiatives the Company—grounded in employees’ real-life needs—continuously refines its welfare system effectively strengthening their sense of belonging

thereby build the strongest internal foundation for sustainable development. happiness and team cohesion thereby laying a solid foundation for sustainable business development.42 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

Case Uniting Hearts Igniting Love – Establishment of Case The “Cooling Care” Initiative Case Spring Festival Care for Employees in Need

the LONCIN Care Fund

On November 21st 2025 led by the Company’s labor union LONCIN estab- On August 5th 2025 the Party Committee of LONCIN organized a "Summer On the occasion of the Spring Festival the Company launched a Spring

lished the LONCIN Caring Fund to comprehensively strengthen employee Cooling" care activity for staff working in high temperatures. Members of the Festival care activity for employees in need under the theme of "Delivering

care initiatives build a distinctive “warmth project” and carry forward the Party Committee formed several care groups and visited various high-tem- Warmth and Showing Care". It sent consolation supplies including grain and

cherished tradition of “when one is in need help comes from all sides.” The perature work sites and frontline positions to greet employees who kept oil milk and toiletries to the families of employees facing hardships truly

fund is primarily used to support employees in hardship provide emergency working in the scorching heat presenting them with heatstroke prevention bringing the organization’s care and Spring Festival blessings to their hearts.assistance in unexpected situations and deliver various forms of care and and cooling supplies and sincere care from the organization. The activity This care activity not only made employees in need deeply feel the warmth

consolation offering timely and targeted support and protection. The estab- benefited more than 200 employees effectively delivering care and warmth of the corporate family but also effectively boosted morale enhanced team

lishment of the LONCIN Caring Fund has further built a solid defense line for to frontline staff further enhancing team cohesion and motivating employ- cohesion and sense of belonging and fully demonstrated the Company’s

employees to withstand risks conveys the Company’s sincere care for its ees’ work enthusiasm. people-oriented development philosophy.staff and deeply roots the cultural concepts of mutual help friendship and

solidarity. The Company will safeguard employees' well-being with concrete

actions continuously unite the people and pool strength injecting warm and

enduring impetus into the high-quality and sustainable development of the

enterprise.43 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

2.Staff Activities

Case Movie Screening for Dormitory Employees

The Company strives to build a diversified platform for employee activities. By organizing a variety of cultural and sports

events such as themed performances group movie screenings and sports competitions it enriches employees’ spiritual life On July 1st 2025 to celebrate the CPC Founding Day and further

and enhances team communication and cohesion. These activities not only provide employees with opportunities for self-dis- strengthen cohesion among dormitory residents the Company or-

play and collaboration but also further foster a positive supportive and caring organizational atmosphere enabling every ganized a themed movie screening activity for over 200 employees

employee to feel the Company’s support and sense of belonging. living in dormitories. The group movie screening created a warm and

harmonious cultural atmosphere effectively enhancing employees’

sense of belonging and team cohesion. Well-organized this activ-

Case Staff Singing Competition ity not only enriched employees’ spare time life but also promoted

corporate culture development playing a positive role in boosting

On April 30th 2025 to celebrate the International Workers' Day the Company held a large-scale cultural employee cohesion and facilitating the harmonious development of

performance themed "Glory in Labor Greatness in Creation Building a Better Future" attended by nearly the Company.

3000 employees. During the event employee choirs and dancers performed on the same stage paying

tribute to all workers with passionate singing and graceful dancing. This activity not only enriched em-

ployees’ cultural life and promoted the spirit of model workers and craftsmanship but also made every

worker feel their own value and the respect of the Company further inspiring all staff to love their jobs

work with dedication and strive forward in unity.Case Dormitory Staff Badminton Competition

In 2025 to further develop the employee welfare system and

enrich the cultural and recreational activities of dormitory staffthe Company organized the first “Show Your Skills in BadmintonUnite for the Future” Badminton Tournament for dormitory staff.The event attracted a total of 32 male and 8 female employees.On the field the participants competed with courage and team-

work fully demonstrating a high-spirited positive and enterpris-

ing demeanor. This event further advanced the development ofour corporate culture centered on “building together sharing to-gether and celebrating together” fostering a sense of unity and

cohesion through heartwarming initiatives.44 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

Life First Safety Foremost

LONCIN has always taken occupational health and safety management as the fundamental

guarantee for enterprise development. By establishing a modern management system that 1.2 Occupational Hazard Prevention

covers all employees and runs through the entire process the Company systematically fulfills and Control Mechanism

its primary corporate responsibilities. The Company continues to strengthen the prevention

and control of occupational hazards improve the employee health monitoring mechanism LONCIN has formulated the System for Monitoring and Analysis of Occupational Hazards

and conduct in-depth safety training and emergency drills. It promotes the transformation of conducting regular monitoring and analysis in workplaces with occupational disease risks.the health and safety management model from post-incident response to pre-incident pre- Case Work Safety Month TrainingThe Company formulates an annual monitoring plan specifying locations items and frequen-

vention and systematic governance effectively providing solid support for the physical and cies and systematically identifies and assesses various occupational hazards such as dust

mental health of employees and the stable operation of the Company. In 2025 the Company noise and chemical toxicants through a combination of regular testing and daily supervision.recorded zero work-related fatal accidents. In 2025 LONCIN organized special training for the Work Test results are rigorously analyzed against national limit standards. Any issues identified are Safety Month aiming to further strengthen the safety

promptly disclosed and targeted corrective actions are organized. Meanwhile by establish- awareness of all employees and standardize safe opera-

1.Occupational Health Management ing comprehensive monitoring archives the Company is driving a shift in occupational hazard tion practices. This special training is a key part of LONCIN control from passive response to proactive prevention and systematic governance. in fulfilling its primary responsibility for work safety. It has

not only consolidated the Company’s safety management

LONCIN strictly abides by the Law of the People's Republic of China on Prevention and Control foundation but also laid a solid foundation for continuous-

of Occupational Diseases and other laws and regulations and has systematically established an 2.Work Safety and Emergency ly fostering a safety culture featuring "prevention first and

employee health protection mechanism that covers all employees and all processes. The Company participation by all" and ensuring the safe and stable oper-

has formulated and implemented internal systems such as the Measures for Occupational Health Management ation of the enterprise.Management clarifying management responsibilities and standardizing work procedures. A com-

plete institutional management system has been formed covering monitoring and assessment of

hazards in the workplace occupational health examinations hazard notification and warning man- LONCIN adheres to the people-oriented principle and regards employee safety and health as the

agement of personal protective equipment as well as occupational health publicity education and basic premise and important guarantee for enterprise development. The Company strictly adheres

file management. This mechanism aims to effectively prevent and control occupational hazards to domestic and international standards such as ISO 45001 and GB/T 45001-2020. It has formu-

continuously improve the working environment and earnestly safeguard the physical and mental lated and implemented a series of core systems covering the full process of safety management

health and legitimate rights and interests of every employee through systematic and standardized including the Safety Production Responsibility System the Safety Training and Education System

measures. and the Accident Risk Identification and Hidden Danger Investigation and Management System.Furthermore the Company continuously improves its occupational health and safety management

1.1 Annual Physical Examinations system systematically building a closed-loop mechanism that spans from responsibility implemen-

tation and risk control to emergency response. Through regular training facility upgrades and

LONCIN has formulated and implemented the specific management requirement titled Orga- multi-level supervision the Company translates institutional requirements into concrete actions.nization and Implementation of Occupational Health Examinations. Through clarifying respon- This effectively safeguards employee safety and fosters a safety culture characterized by preven-

sibilities standardizing procedures and establishing continuous follow-up mechanisms the tion first and participation by all.Company conducts specialized health surveillance for employees exposed to occupational

hazards. Annually the Company formulates examination plans based on the categories and

exposure levels of hazards. It organizes specialized health checks for pre-employment in-ser- 2.1 Safety Training

vice and pre-departure stages strictly determining the items and frequency in accordance

with national standards. Furthermore the Company promptly addresses abnormal results and

maintains long-term occupational health records thereby systematically fulfilling its primary Focusing on risk points across all aspects of production and operations the Company con-

responsibility for the prevention and control of occupational diseases. ducts targeted diversified training sessions. These include forklift operation for engine han-

Meanwhile the Company attaches importance to the comprehensive health management dling three-level safety training for new employees and interpretations of the Work Safe-

of employees uniformly organizes routine health examinations for all staff every year and ty Law. By combining theoretical instruction with practical drills the Company continuously

establishes and maintains personal health records accordingly. This provides a basis for imple- strengthens safety awareness across the board. This approach enhances employees' abili-

menting scientific and systematic health support. By combining routine physical examinations ty to identify and handle various safety hazards ensuring that safety concepts are deeply

with specialized occupational health examinations the Company has built a health manage- rooted in everyone's mind and laying a solid ideological foundation for production and op-

ment mechanism covering all employees and running through their entire career cycle effec-

tively safeguarding employees’ physical and mental health. In 2025 the Company achieved erations. In 2025 the Company organized a total of 470 training sessions covering 15093

full coverage of physical examinations for all on-the-job employees. person-times with a training coverage rate of 97.7%.45 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

2.2 Emergency Drill

Case Safety Training on Forklift Operation for Engines

The Company has formulated a series of rules and regulations including the Emergency Plan for Production Safety Accidents the Measures for Emergency Preparedness and Response Man-

In March 2025 the Company organized a special safety training agement and the Procedures for the Control of Emergency Preparedness and Response clarifying the emergency organizational structure response levels incident handling procedures and

on forklift operation for engine handling and provided systematic support measures. The Company carries out emergency drills on a regular basis organizing a total of 87 drills throughout the year continuously testing the practicality and operability of the

lectures on safety standards for the entire process of forklift oper- emergency plans and optimizing incident handling procedures. In addition the Company has fully equipped itself with a comprehensive range of emergency resources—including fire extin-

ations to frontline operators and relevant management personnel. guishers first aid kits emergency response vehicles and other essential supplies—and has established a robust emergency communication mechanism. This ensures rapid and scientifically

The training elaborated on dangerous scenarios and standard op- sound responses to emergencies such as fires explosions or chemical leaks thereby minimizing personnel injuries and property damage to the greatest extent possible and providing solid

erating procedures during operations further enhancing the safe- institutional and hardware support for the Company’s safe and stable operations.ty awareness and practical operation capabilities of participants.This training helps to clarify the primary responsibility for work

safety improve the safety literacy of frontline operators and lay

a solid foundation for preventing vehicle-related injuries and en-

suring safe and stable production operations. Case Oil Depot Safety Emergency Drill

In July 2025 the Company organized a special emergency drill for oil leakage fire

and explosion accidents targeting oil depot safety. The drill simulated the entire

process—from leak detection and initial response to alarm activation firefighting

and personnel evacuation—effectively validating the feasibility of on-site emergen-

cy procedures enhancing coordination and response capabilities among relevant

personnel under emergency conditions and further strengthening the safety assur-

ance foundation for the Company’s key operational areas.Case Evacuation Drill

In 2025 the Company's Technology Center organized the annual comprehensive

evacuation emergency drill. The drill strictly followed the emergency plan proce-

dures and simulated the entire process of personnel evacuation on-site command

and emergency response in the event of a sudden emergency. Participants evacu-

ated in an orderly manner in accordance with the established escape routes and

personnel in key positions quickly fulfilled their emergency duties. The entire pro-

cess was characterized by rapid response orderly organization and appropriate

handling. This drill effectively tested the practicality and operability of the emergen-

cy plan of the Technology Center further strengthened the safety risk awareness

and emergency avoidance capabilities of all staff and laid a solid foundation for

ensuring the safety and stability of scientific research and production activities.46 Loncin Motor Co. Ltd.Environmental Social and Governance (ESG) Report 2025 People-Oriented Development for Social Harmony

United in Purpose Spreading LONCIN’s Warmth

LONCIN actively fulfills its social responsibilities integrating corporate development into the overall national strategy and committing itself to

rural revitalization and community development. Relying on its industrial resources the Company supports rural development and urban-ru-

ral integration through a series of practical measures advancing the coordinated development of the enterprise and society while fulfilling

its social obligations.The Company continuously invests in local public welfare causes focuses on the well-being of special groups conveys corporate care through con-

crete actions and upholds the responsibility philosophy of co-building and shared benefits. On the other hand the Company strives to integrate

public welfare practices with rural development. Leveraging its organizational and brand advantages it helps broaden the paths of rural develop-

ment through innovative models effectively promotes industrial revitalization and achieves efficient synergy between corporate social responsibility

and sustainable development. In 2025 LONCIN’s cumulative donations amounted to RMB 110000. Through sustained investment in public welfare

the Company fulfills its social responsibilities gives back the fruits of corporate development to society and demonstrates its corporate culture of

"co-building and shared benefits" and sense of responsibility with tangible actions.Case "Caring for the Disabled Compassion in Action" Donation Drive

In January 2025 LONCIN actively responded to the donation drive "Caring for the Disabled Compassion in Action" launched by

the Disabled Persons’ Federation of Jiulongpo District donating RMB 10000 to purchase warmth kits. The donation brought care

to disadvantaged families in the district including households with multiple disabled members families where the elderly support

disabled relatives and households with persons with severe disabilities at Level 1 or Level 2. This donation not only provided prac-

tical living support to the beneficiaries but also demonstrated the Company’s commitment to continuously caring for vulnerable

groups and contributing to common prosperity.Case Live-Streaming for Rural Revitalization

In 2025 the Party Branch of LONCIN’s engine business unit actively pro-

moted the deep integration of Party building and business operations bylaunching an innovative live-streaming initiative titled “Party LeadershipCraftsmanship for Farmers” to support rural revitalization. Leveraging the

Company’s brand influence the initiative expanded sales channels and in-

jected new impetus into rural revitalization with a "red engine". This prac-

tice not only effectively translated the political advantages of the Party

organization into practical momentum for rural development but also ena-

bled Party members to further uphold their original aspiration and sense of

mission while serving the people realizing effective synergy among Party

building social responsibility and corporate development.47 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Appendix 1: Key Performance Indicators

Appendix 1: Key Performance Indicators

Indicator Unit FY2023 FY2024 FY2025 Indicator Unit FY2023 FY2024 FY2025

Economic Performance Sulfur oxides Tons 0.33 0.02 0.07

Operating income RMB Ten Thousand 1306648.13 1682224.10 1913515.45 VOC emissions Tons 21.39 12.21 27.61

Net profit RMB Ten Thousand 58342.18 112127.17 164775.04 Ammonia Tons 0.04 0.10 0.15

Total tax payments RMB Ten Thousand 53821.44 91449.17 126243.45 Water Water consumption Tons 994400.00 1147600.00 1162127.13

Resources

Total cash dividends (including tax) RMB Ten Thousand 20535.42 82141.67 143747.93 Utilization Intensity of water consumption Tons/RMB Ten Thousand 0.76 0.01 0.61

Cash dividends per 10 shares RMB Ten Thousand 1.00 4.00 7.00 Total wastewater discharge Cubic meter 560974.00 500300.00 625060.00

R&D investment RMB Ten Thousand 52397.51 53453.00 46855.88 Chemical oxygen demand (COD) Tons 66.98 58.54 49.86

Overseas income RMB Ten Thousand 855353.00 1088973.54 1286835.44 Five-day Biochemical Oxygen Demand (BOD5) Tons 28.58 15.71 17.82

Environmental Performance Suspended substance Tons 16.82 45.19 29.60

Scope 1 GHG emissions—direct tCO?e / 18932.44 17992.27 Water Ammonia nitrogen Tons 7.45 4.27 2.02

Scope 2 GHG emissions—indirect tCO?e / 136348.10 56109.36 Pollution Total phosphorus Tons 0.64 0.84 1.08

Discharge

Scope 3 GHG emissions—upstream

and downstream tCO?e / / 53612.84 pH / 7.12 7.14 6.91

Respond- Total GHG emissions tCO?e / 155280.54 127714.47 Anionic surfactants Tons 0.06 0.16 0.08

ing to

Climate Scope 1 GHG emissions intensity tCO?e/RMB Ten Thousand / 0.01 0.01 Fluoride (measured as F-) Tons 0.66 0.95 1.01

Change

Scope 2 GHG emissions intensity tCO?e/RMB Ten Thousand / 0.08 0.03 Oil type Tons 1.38 3.85 135.49

Scope 3 GHG emissions intensity tCO?e/RMB Ten Thousand / / 0.03 Formaldehyde Tons 0.11 0.00 0.13

GHG emissions intensity tCO?e/RMB Ten Thousand / 0.09 0.07 Total recyclable waste Tons 189.00 448.81 626.16

Gas Cubic meter 2677584.00 2566771.00 8800000.00 Total general solid waste Tons 189.00 448.81 626.16

Use of Petrol Liter 443053.00 503741.00 185602.74 Total recycling of general solid waste Tons 189.00 448.81 626.16Waste

Energy Renewable energy Kilowatt Hours 28760965 162520.00 784500.00 Manage- Emission intensity of general solid waste Tons/RMB Million 0.01 0.03 0.03

ment and

Purchased electricity Kilowatt Hours 40691138.00 59197270.00 105747000.00 Pollutant Total hazardous waste Tons 487.99 4630.25 5607.86

Prevention

Total waste gas emissions Cubic meter 2579906290.00 2572050400.00 2759370220.00 Total hazardous waste incineration Tons 129.11 955.91 686.42

Gaseous Particulate matter Tons 18.48 7.03 9.49 Total hazardous waste recycling Tons 358.88 3276.29 3761.30

Pollution

Emissions Non-methane hydrocarbons Tons 3.38 8.44 9.45 Emission intensity of hazardous waste Tons/RMB Million 0.03 0.31 0.29

Nitrogen oxides Tons 1.27 0.47 1.86 Green Package Packaging materials used - wooden pallet Piece 650.00 136390.00 138530748 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Appendix 1: Key Performance Indicators

Indicator Unit FY2023 FY2024 FY2025 Indicator Unit FY2023 FY2024 FY2025

Packaging material used - wooden buckboard box Piece 30000 1923 2432 Governance Performance

Green Packaging material used - plastic box Piece 10101 2004 7846308 Number of shareholders' meetings held Times 5 5 3

Package

Packaging materials used - cardboard box Piece 2018796 4607451 6596914 Number of board meetings held Times 7 5 9

Trans- Number of electric private car ownership Vehicle 193.00 387.00 437.00 Number of meetings of the Audit and Risk Control Committee Times 4 5 4

portation Number of fuel private car ownership Vehicle 2456.00 3152.00 3052.00 Number of meetings of the Nomination Committee Times 5 2 3

Corporate

Environmental protection investment RMB Ten Thousand 880.00 940.99 1068.22 Gover- Number of meetings of the Remuneration and Appraisal Committee Times 1 1 3

Social Performance nance Number of meetings of the Strategy and Investment Committee Times / 1 1

Total number of employees Person 8932 10529 10348 Number of meetings of the Budget Management Committee Times / / 1

Master's degree and above Person 224 232 238 Number of meetings of the Related Transaction Committee Times / / 1

Bachelor's degree Person 1393 1571 1597 Number of members of the Board of Directors Person 9 9 9

Education

Junior college Person 1350 1628 1565 Number of independent directors Person 3 3 3

Secondary vocational school/High school and below Person 2611 3167 6948

Number of trainings during the year Times 8165 4540 4369

Total number of employees trained Person 8165 10167 10348 Appendix 2: Index of Indicators

Number of basic level employees trained Person 7744 9753 9934

Mid-level managers trained Person 365 362 367

Employee Senior managers trained Person 56 52 47 Reporting Chapters GRI Sustainability Reporting Guidelines

Training for A-share Listed Companies1

Total hours of employees trained Hours 16200 20334 25870 I. Laying a Solid Foundation for Governance Ensuring Steady & Long-Term Development Through Compliance

Average length of employee training Hours 2 2 2.50 1. Wholehearted Loyalty to the Party Steering LONCIN on a Steady Course

Total number of hours of basic level employees trained Hours 11990 16194 21730 (1) Party Organizational Structure 2-9

Total hours of mid-level managers trained Hours 3650 3620 3670 (2) Party-building Activities 205-2，404-2

Total hours of senior managers trained Hours 560 520 470 2. Building a Solid Foundation for LONCIN

Occu-

pational Number of safety training sessions conducted Times 385 443 470 (1) Governance Structure 2-9，2-10，2-11，2-12

Health and

Safety Number of emergency drills Times 30 32 87 (2) Diversification of the Board of Directors 2-9，2-10

1During the reporting period the Company had no instances of overdue payments to small and medium-sized enterprises; therefore the

issue of “equal treatment of small and medium-sized enterprises” does not apply to the Company.49 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Appendix 2: Index of Indicators

Reporting Chapters GRI Sustainability Reporting Guidelines Reporting Chapters GRI Sustainability Reporting Guidelines for A-share Listed Companies for A-share Listed Companies

3. Steady Development with Strict

Adherence to Operational Bottom Lines 3. Steady Development with Strict Adher- 2. Responding to Climate Change

ence to Operational Bottom Lines Protecting Our Earth

(1) Risk Management and Internal Control 2-13 2-30 Anti-commercial Bribery and Anti-Corruption (1) “Carbon Peaking and Carbon Neu- 305-5 Responding to Climate Change

(2) Business Ethics and Anti-Corruption 205 Anti-commercial Bribery and Anti-Corruptiontrality” Goals

Anti-unfair Competition (2) Climate Risk Management and

(3) Data Security and Privacy Protection 103-2 418 Data Security and Customer Privacy Protection TCFD Framework Response 201-2 403-2 Responding to Climate Change

4. Walking Hand-In-Hand with Transparency (3) GHG Management 305-1 305-2 305-3 305-5 Responding to Climate Change

and Strengthening Value Communication

3. Green Operations and Low-carbon

(1) Disclosure of Information Mechanism 2-1 205-1 418 Engagement with Stakeholders Production

(2) Investor Communication Channels 2-29 201 Engagement with Stakeholders (1) Energy Management 302-1 302-3 302-4 Energy Utilization

II. Empowered by Innovation Forging Out- (2) Water Management 303-4 303-5 Water Resources Utilization

standing Products

(3) Pollutant Emission Management 303-2 305-6 305-7 306-2 306-3 306-4 Pollutant Emission1. Empowered by Intelligent Innovation

Jointly Writing a New Chapter in the Indus- (4) Biodiversity Conservation 304-3 Ecosystem and Biodiversity Conservation

try

4. Continuous Innovation-Driven Green

(1) Research and Development Management 201-1 Innovation Driver Development

(2) Digital and Intelligent Transformation 2-6 2-23 Innovation-driven Product and Service Security and Quality (1) Green Factory Practice 301-1 301-2 301-3 302-4 306-4 Waste Treatment Recycling Economy

(3) Intellectual Property Protection 417-1 Innovation Driver (2) Innovation in New Energy Products 201-2 302-5 Innovation Driver

(4) Technology Ethics 406 Technology Ethics (3) Clean Energy Application 302-1 Energy Utilization

2. Risk Control as a Foundation Safeguard- IV. People-Oriented Development for

ing the Development of the Green Chain Social Harmony

(1) Supplier Life Cycle Management 308-1 414-2 Supply Chain Security 1. Employee Empowerment and Value

Realization

(2) Supply Chain Risk Prevention and Control 2-6 308-1 414-2 Supply Chain Security

(1) Employment 401-1 405-1 405-2 Employees

(3) Supply Chain Sustainability Management 308-1 308-2 414-2 414-1 408

(2) Employee Development 404-1 404-2 Employees

3. Comprehensive Quality Management

Across the Entire Supply Chain Strengthen- 2. Warm Care Greater Happiness

ing the Foundation of Quality

(1) Employee Benefits and Care 401-2 Employees

(1) Product Quality and Safety System 416-1 416-2 Product and Service Security and Quality

(2) Staff Activities 401-3 Employees

(2) Customer Service and Satisfaction 417-1 417-2 418-1 Product and Service Security and Quality

3. Life First Safety Foremost

III. Green Intelligent Manufacturing Leading

the Low-Carbon Transformation (1) Occupational Health Management 403-1 403-3 403-6 403-7 403-9 403-10 Employees

1. System Management: Laying a Solid (2) Work Safety and Emergency Man-

Green Foundation agement 403-5 403-2 Employees

(1) Environmental Compliance Management 2-27 305-7 303-2 Environmental Compliance Management 4. United in Purpose Spreading LON-

CIN’s Warmth 413-1 Rural Revitalization Social Contributions

(2) Environmental Emergency Management 306-3 403-2 403-5 Environmental Compliance Management50 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 Appendix 3: Feedback Form

Appendix 3: Feedback Form

Dear Reader:

Thank you for reading the 2025 Environmental Social and Governance (ESG) Report of Loncin Motor Co. Ltd. To provide you and other stakeholders with more professional and valu-

able corporate ESG information we kindly invite you to complete the relevant questions in the feedback form. Your input will help the Company further improve its ESG performance

in the future.

1、Your identity with respect to LONCIN □ Employee　□ Customer　□ Supplier　□ Regulator　□ Media　□ Others __________(Please specify)

2、What is your overall evaluation of this report □ Excellent　□ Good　□ Fair　□ Poor　□ Very Poor

3、Your opinion on the structure of this report: □ Highly Reasonable　□ Reasonable　□ Fair　□ Poor　□ Very Poor

4、Your opinion on the layout design and presentation of this report: □ Excellent　□ Good　□ Fair　□ Poor　□ Very Poor

5、Your view on LONCIN’s overall performance on environmental issues: □ Excellent　□ Good　□ Fair　□ Poor　□ Very Poor

6、Your view on LONCIN’s overall performance on social issues: □ Excellent　□ Good　□ Fair　□ Poor　□ Very Poor

7、Your view on LONCIN’s overall performance on governance issues: □ Excellent　□ Good　□ Fair　□ Poor　□ Very Poor

8、What comments and suggestions do you have on LONCIN’s ESG practices51 Loncin Motor Co. Ltd. Environmental Social and Governance (ESG) Report 2025 About LONCIN

Loncin Motor Co. Ltd.Environmental Social and Governance (ESG) Report 2025