STOCK CODE：603766
LONCIN MOTOR CO.LTD.ENVIRONMENTAL
SOCIAL
AND GOVERNANCE
(ESG)REPORT 2024I LONCIN's Compliance and Sustainability Policy IV Transparent Governance
and Performance Data
0 3 - 0 8 ESG Strategy and Vision 5 0 - 5 8 Reinforcement of Compliance and Corporate Governance Structure
0 9 - 1 2 Key Performance Indicators 5 9 - 6 4 Transparent Dialogue Targeting Specific Stakeholder Groups
II Environmental Initiatives V Deliberate Planning for Green and Digital and Long-term Vision
Development
1 4 - 2 3 Green Intelligent Manufacturing and Low-carbon Production 6 6 - 6 6 Targets Set for the 2030 Vision
2 4 - 2 8 Ecological Conservation and Responsible Contributions 6 7 - 6 8 Cooperation Build-up for Global Presence CONTENTS
2 9 - 3 1 Pioneering Efforts to Address Climate Change
IIISocial Initiatives and VI AppendixInnovative Development
3 4 - 4 1 Human Resources Development
7 0 - 7 1 Index
4 2 - 4 5 Technology-Empowered Industrial Upgrade Driven by Innovation 7 2 - 7 4 Key Performance
4 6 - 4 8 Rural Revitalization and Community Outreach
1LONCIN's Sustainability Policy and
Performance Data 01
ESG Strategy and Vision
Key Performance Indicators
2ESG Strategy and Vision
I
II Green development is a win-win that creates universal well-being and allows more
III participants to realize their self-values. On this path of continuous innovation we look
IV forward to joining hands with more peers to make the world a better place!
V
VI
Dear colleagues business partners and friends from all sectors of society:
At this critical moment when LONCIN is embarking on a Meanwhile the Company also highly values investor returns share of VOGE high-end brand and developing new energy
new journey of green intelligent manufacturing I would like and actively contributes back to investors through cash robot motorcycles. We will also double efforts to plan andto present the ESG Report for fiscal 2024 on behalf of the dividends shares operating results with investors and brings build overseas factories to realize the transition from “Productsmanagement of the Company. long-term stable investment returns to investors. Since its Abroad” to “Manufacturing Abroad” and “Brand Abroad”.listing in 2012 its annual cash dividend amounts to more than Through technological innovation we will promote the global
The year 2024 was extraordinary and also a milestone in 30% of net profit attributable to shareholders of the listed presence of our brand value and provide smarter choices for
the history of the Company's development. There were company in the year with cumulative cash dividends of RMB global users with green and intelligent products and services to
significant changes in the Company's actual controllers and 3.996 billion (inclusive of dividends in the 2024 distribution enhance the competitiveness and influence of the Company in
major shareholders and corporate governance was improved plan) accounting for 45.07%3 of cumulative net profit the global market striving to become the industry pacesetter
unprecedentedly. attributable to shareholders of the listed company.. on all fronts.The Company adhered to the development strategy of “Four The year 2025 is one to start a new chapter and to make All things that grow live in harmony and benefit from theTransformations and One Boost” toward a positive transition greater achievements. Under the leadership of President Zuo nourishment of Nature. I sincerely appreciate the dedication
to electrification intelligence internet connectivity and Zongshen the Company will further enhance its governance of our employees and business partners and the concern
ecologization with steady growth of businesses as a result and take the initiative to incorporate into the national of friends from all sectors! It is your support and trust that
and revenue in particular has hit a record high. Guided by the strategies with Chongqing “33618” modern manufacturing secures the Company’s steady progress on green intelligentvision of “A Leading Brand with Low-carbon Power System cluster system ? as its focus the stock optimization as its manufacturing. Green development is a win-win that createsand Intelligent Products” the Company successfully developed management technique and the incremental breakthrough universal well-being and allows more participants to realize
an all-terrain vehicle equipped with hydrogen fuel batteries as its development orientation in accordance with the their self-values. On this path of continuous innovation we
and the purely electric intelligent unmanned platform SMP500 requirements of “Four-chain” integration and “Four- look forward to joining hands with more peers to make theetc. Additionally the Company continues to optimize the side” synergism. We will vigorously uphold the principle world a better place!environmental performance of traditional fuel engines. VOGE of “Standardization Leaning Automation Digitalizationlaunched the first full-scene ecological AI locomotive system in Visualization and Intelligence” to build a digital intelligent
the motorcycle industry - “Jiyu OS” version 3.01 which brings factory and a future factory. Focusing on the main businesses
a new intelligent travel experience to users. The Company was we will start the replacement and integration of motorcycle
awarded titles such as “National Green Factory”2. assets and businesses. We have the ambition to build the Chairman of Loncin Motor Co. Ltd.kernel of the motorcycle industry by expanding the market
1 VOGE's “Jiyu OS” deeply integrates with DeepSeek opening a new era of intelligent motorcycle transportation https://www.loncinindustries.com/Group/NewsDetails.aspxcatid=7|68|80&id=2146822990
2 LONCIN was awarded the title of “National Green Factory”
https://www.loncinindustries.com/Group/NewsDetails.aspxcatid=7-68-80&id=2146822984
3 Announcement on the action plan of “Improving Quality Increasing Efficiency and Focusing on Returns” by Loncin Motor Co. Ltd. 3
https://notice.10jqka.com.cn/api/pdf/9853c7b1ccd46cb3.pdf
4 “33618” Chongqing aims to build a modern manufacturing cluster in the next five years
http://cq.people.com.cn/n2/2023/0606/c365402-40445291.html
CHAIRMAN'S ADDRESSThis report released annually is the second ESG report publicly released by LONCIN (stock code: 603766.SH) aiming to respond to
stakeholder expectations and comprehensively demonstrate the Company's philosophy actions and achievements in environmental social
and corporate governance. This report has been reviewed and approved by the Board of Directors to ensure that there are no untrue records
misleading statements or material omissions in its contents.I
II Period Covered Organizations Covered Definitions
III This report covers the period from The reporting entity is Loncin Motor Co. Ltd. For the convenience of presentationIV January 1st 2024 to December 31st including more than 20 subsidiaries such as and readability “Loncin Motor Co.
2024. Some of the statements and data Chongqing Loncin Motor Co. Ltd. Chongqing Ltd.” is also referred to in the report
V are not within the above period and will Loncin Engine Co. Ltd. etc. The financial as “LONCIN” “the Company” or “we”.VI be explained when involved. data used is from the audited annual report
of the Company and other data is from
official documents and statistical reports of
Publication the Company (previous years' data should be Contact for Inquiries
based on the disclosure in this report).Address: Loncin C No. 116 Juye
This report is published in both English
and Chinese and the Chinese text shall Road Jiulongyuan C Jiulongpo Referenced Standards
prevail in case of ambiguity between the District Chongqing
versions. You can download and read the The preparation of this report is about GRI Tel: 023-89028829
PDF electronic version of the report on Sustainabi l i ty Report ing Standards (GRI Postcode: 400052
the Company's official website (https:// Standards) issued by Global Sustainability Fax: 023-89028051
www.loncinindustries.com/) and the Standards Board (GSSB) In ternat ional
website of the Shanghai Stock Exchange Financial Reporting Sustainability Disclosure Email: service@loncinindustries.com
(http://www.sse.com.cn/) to obtain more Standard No. 1 - General Requirements for
information about our environmental Disclosure of Sustainability-related Financial
social and corporate governance. Information (IFRS S1) and International Financial
Reporting Sustainability Disclosure Standard
No. 2 - Climate-related Disclosure issued by
International Sustainability Standards Board
(ISSB) Sustainability Reporting Guidelines for
Listed Companies issued by the Shanghai
Stock Exchange and a series of relevant
standards issued by the Task Force on
Climate-related Financial Disclosures (TCFD)
and it also discloses LONCIN's contributions to
the United Nations Sustainable Development
Goals (SDGs).
4
Basics of the ReportCompany Overview
I
II
III
Loncin Motor Co. Ltd. was established in 1993 listed on the
IV Shanghai Stock Exchange in 2012 (SH: 603766). Headquartered
V in Chongqing the company has a workforce of 10529 employees
an asset size of RMB 16.089 billion and an annual operating
VI income of RMB 16.822 billion of which overseas income accounts
for 64.74%. It has (controlling) shareholdings in more than 20
companies all over the country; its products are sold popularly
in more than 100 countries and regions all over the world; and
the number of distributors is more than 2000. The Company's
main products focus on motorcycles engines general-purpose
power engines small household generator sets and garden
machinery products digital energy products etc. In 2024
motorcycle production and sales ranked the top 2 in the industry
and the exports ranked first in the industry; motorcycle engine
sales ranked the top of the industry and general machinery
export exchange ranked the top of the industry; the engine
sales ranked the top of the industry. Strategic partnerships have
been established with globally recognized companies such as
BMW TORO and Cummins. It owns three independent brands:
“LONCIN” “VOGE” and “BICOSE”. The two brands “LONCIN”
and “KINLON” are both well-known trademarks in China.LONCIN is the first enterprise in the industry to pass the
national safety technology exemption cert if ication formotorcycles. LONCIN's technology center is a “NationalEnterprise Technology Center” and it has two “NationalAccredited Laboratories” and “National Industrial DesignCenter”. It is also a “National Intellectual Property DemonstrationEnterprise”. LONCIN will continue to promote industrial
upgrading build the optimal manufacturing base for global
high-end motorcycles and engines and move towards
intel l igent sustainable and high-qual ity development.
5in 1993 the predecessor “Chongqing LONCIN Transportation Machinery” was
established and the first motorcycle engine was listed on the market.I in 1998 the first motorcycle was listed on the market.II in 2001 the first general-purpose gasoline engine was listed on the market.III
in 2002 LONCIN motorcycle was recognized as a “Well-known Trademark in China”.IV
V in 2004 LONCIN Motorcycle was awarded the title of “Famous Brand in China”.VI
in 2005 LONCIN started to cooperate with BMW in Germany and the
LONCIN technology center was recognized as “National Technology Center”.in 2007 LONCIN passed the motorcycle national safety technology
exemption certification.in 2012 it was successfully listed on the Shanghai Stock Exchange.in 2015 it signed a whole vehicle strategic cooperation agreement with
BMW.in 2018 it released its high-end brand for motorcycles VOGE.in 2021 New Vision·New Mission·New Values was released.in 2022 the company launched the electric motorcycle
brand “BICOSE” and released its first electric motorcycle
the Real5T.in 2024 LONCIN's EP series of portable energy storage power supplies
were launched in Amazon US Europe and Japan realizing the breakthrough of
e-commerce channel sales. In December of the same year LONCIN's controlling
shareholders and actual controllers changed significantly and the new shareholder
structure brought new vitality and opportunities to the Company opening a new
chapter in the development of LONCIN.……
6
evelop
ment
History
of DESG-Related Recognition
I
II
III
IV
V
VI
7
6
9
9
8
13
49
29
5
* In 2024 the Company was awarded the title of “National Green Factory” by the Ministry of Industry and Information
Technology.* In 2024 the Company was awarded the title of “The Listed Company with the Most Growth in Large Consumption” in
the 14th China Listed Company Reputation Ranking.* In 2024 the Company was awarded the title of “2024 Listed Company with Growth Value” in the 9th Golden Sail Case
of the 21st Century Capital Market.* In 2024 the Company was listed in the 2024 EDGE AWARDS Innovation Awards as a “Pioneer of the Year in GoingOverseas”.* In 2024 the Company was honored as the “Best Listed Company in Investor Relation Management” in the 2024 EDGE
AWARDS Innovation Awards.* In 2024 the portable energy storage power supply EP600 won a gold medal at the French Design Awards.* In 2024 the portable energy storage power supply EP600 won a platinum medal at the American Good Design Awards.* In 2024 the Company won the bronze award at the China Import and Export Fair.* In 2024 Chongqing top 100 enterprises，Chongqing top 100 private enterprises Chongqing top 100 manufacturingenterprises and Chongqing top 100 private manufacturing enterprises.
7Our mission: Our values:
Technology-focused Strengthening the Country Through
I
Innovation-driven for Industrial Development Putting
a Better Life the Customer First and Achieving II Common Prosperity
III Our vision: Our strategy:A Leading Brand with a Focus on “Motorcycle + IVLow-Carbon Power System General Purpose Engine”V and Intelligent Products Business “Bigger andVI Stronger More Specializedand Thorough”.
8ESG Key Performance Data
Key Performance Indicators
In 2024 the Company made significant achievements in a number of areas
I including economic environmental social and corporate governance demonstrating
its excellence and strong commitment to sustainable development.II
III
Economic performance: Environmental performance: Social performance: Corporate governance performance:
IV
In 2024 the company realized an In 2024 the Company's total annual
V LONCIN is committed to building a LONCIN has Party members
operating income of RMB 16.822 water use amounted to 46800 tons; diverse and inclusive work environment. 2 1 9
VI billion greenhouse gas emissions of 155300 By the end of 2024 2 7 % o f the accounting for 2% of the total number
an increase of 28.74% compared with tons of CO2 equivalent; Company's employees were female; of employees which not only reflects
the same period last year saved a total of 33463.54 liters of the employee training reached 20334 the high quality and high sense of
and taxes paid of RMB 914491700. barreled and bottled water; hours ? an increase of 2 0 . 3 3 % respons ib i l i t y o f the Company 's
Of these the sales volume of the the Company made full use of renewable compared with the same period last employees but also demonstrates
motorcyc le bus iness exceeded energy photovoltaic power generation year; and the employee health checkups the positive results of the Company's
1823000 units representing a 30% with a cumulative power generation reached 100% coverage. leadersh ip in Par ty bu i ld ing and
growth compared with the same capacity of 96.33 megawatt-hours with The Company highly values consumer
period last yearand the export scale a cumulative carbon emission reduction the corporate culture building. The protection customer relations and the
ranked first in the industry. of 26.20 tons of CO2 equivalent; Company's proposed cash dividends quality of its products and services with
and recycled trays wooden crates and 100% complaints were resolved and amounted to RMB 821 million in 2024
The Company's brand influence plastic baskets amounting to 140317. 99.05% customer satisfaction in 2024. accounting for 73.26% of the net profit
gradually increased and become The annual environmental protection attributable to shareholders of the listed
apparent and the growth rate of investment was RMB 9409900.revenue from its brands is 1.8 times 1594 company for the current year and the The R&D personnel amounted to .the growth rate of total revenue. In The annual R&D investment was RMB cumulative cash dividends amounted
addition the Company continued 534.53 million and the number of new to RMB 3.996 billion accounting for
to optimize cost management and patents authorized in 2024 was 217. 45.07% of the cumulative net profit
improve operational efficiency to attributable to shareholders of the listed
ensure good economic benefits and
shareholder returns (e.g. 7 new company which provided investors
standard process compi lat ions with sustainable and stable returns on
2 a u t oma t ed p r oduc t i o n l i n e investment.
upgrades in the workshop and an
8.28% increase in individual hourly
efficiency).
5 Notes:
Total training hours: 20334 hours was the total number of training hours completed by all employees during the statistical cycle. Total Training Hours = Individual Training Hours * Number of Trainees.Individual training hours: The individual training hours was 2 hours according to the statistics.Scope of data: The above data covers all training programs during the statistical cycle including online courses offline centralized training skills enhancement training etc.
9The Company actively practices the philosophy of sustainable development closely integrates the development philosophies of
environment society and governance with the United Nations 2030 Sustainable Development Goals (SDGs) establishes multi-
I dimensional development goals and continuously improves the overall ESG governance level to realize the goal of sustainable
development.II Response to the United Nations SDGs Our Actions Fields
III
IV
V Technological Innovation
Green R&D
VI LONCIN’s Sustainability Policy and Performance DataOperating in Compliance with the Law
Biodiversity Conservation
Improvement of Environment Management System
Energy Management
Monitoring Pollutant Emissions
Use Clean Technologies
Creating a Factory with Landscape Gardening
Promoting Green Office
Green R&D Environmental Initiatives for Green and Digital Development (E)
Operating in Compliance with the Law
Quality Management
Biodiversity Conservation
Sustainable Supply Chains
Customer Satisfaction Management
Employment Opportunity Equality
Employee Diversity
Enhancing Employee Communication
Perfect Training System
Upholding Intellectual Property Rights
Protecting Employee Benefits Social Initiatives and Innovative Development (S)
Enhancing Stakeholder Engagement
Focusing on Employee Health and Safety
Assistance in Employment
Customer Satisfaction Management
Operating in Compliance with the Law Compliance and Transparent Governance (G)
Optimizing the Management and Governance Structure
Ensuring Customer Information Security and Privacy
Deliberate Planning and Long-term Vision
Industry Cooperation and Development
Improving Sustainable Development Goals
10Analysis of Material Topics
28
I 15
16
II 10 24 The analysis of material topics is fundamental to the preparation of
9 the sustainability report. It plays a core role in accurately identifying
III 5
7 17 and filtering out the key topics that companies need to focus on in
IV 8 their reports. This process not only anchors a clear and strategic
22
V 21
11 Environment course of action for the Company but also ensures the accuracy 26
3
VI relevance and effectiveness of information disclosure of the 2
27 13 sustainability report. The systematic assessment enables companies
Society to focus on topics that have the most significant economic
1412
18 20 environmental and social impacts thus providing stakeholders
1 with more valuable information and demonstrating corporate
4 Governance responsibility in the field of sustainable development.
251923
6
We continuously optimize the process of the analysis of ESG
material topics combining the expectations of stakeholders with
the background of sustainable development national conditions
Materiality to LONCIN and policies industry characteristics and corporate strategies
E S G and understand the importance of the impact of ESG topics on
1 Carbon Emission 8 Product Quality and Safety 20 Sustainability/ESG Management stakeholders through communication and interaction with internal
2 Toxic Emissions and Wastes 9 Employee Health and Safety and external stakeholders and draw a matrix of material topics 21 Operational Compliance
3 Use of Resources and Energy 10 Information Security and Privacy Protection for management and information disclosure in the following two
22 Risk Management
4 Cleantech Opportunities 11 Innovative R&D Digital Transformation dimensions: “Materiality to Stakeholders” and “Materiality to
5 Circular Economy 12 Intellectual Property Protection LONCIN”. This matrix provides clear guidance so that we can 23 Business Ethics and Corporate
6 Environment Management System 13 Supply Chain Management Governance focus more on advancing our sustainable development efforts and
7 Biodiversity Conservation 14 Customer Service 24 Anti-corruption contributing to the harmonious coexistence of the economy society
15 Labor Management and the environment.25 Boosting National and Economic
16 Employee Training and Development Development
17 Industry Cooperation 26 Leadership of Party Building
18 Rural Revitalization 27 Stakeholder Dialogue and Collaboration
19 Industry-University-Research Collaboration
11
Materiality to Society and StakeholdersEngagement with Stakeholders We highly value engagement with stakeholders and ensure information transparency a variety of channels
available for two-way interaction. We identified key stakeholders including government and regulatory agencies
shareholders and investors employees community residents customers and value chain partners and kept
I communication with them to address their concerns.II
III Government Shareholders and Community Public Welfare
Industry
Stakeholders and Regulatory Employees Customer Value Chain and Charity Association & Media and
IV Agencies Investors Residents Partners Organizations Organizations Public
V Compliance Employee Rights Information and Service and Product
with Law and Shareholder
and Interests Security
Returns Protection
Driving Local Fair Competition
VI Regulations Economic Transparent
Information
Employee Health Development Quality Customer and Honest Promoting the
Operational Disclosure of and Safety Service Cooperation Supporting Development of
Future Development
Compliance Information TrendsEmployee Local Social Public the Industry
Expectations Anti-corruption Training and Environmental Product Quality Fair TradeRisk WelfareDevelopment Impacts from and Safety Technology Corporate Social
and Driving Local Management and Product Qualified Mutual Responsibilities
Development Control Democratic
Production and Fulfilling Social and Experience
Communication Operations Rate DevelopmentAppeals Responding Responsibilities
Sharing
Remuneration Financial
to National Corporate and Benefits
Governance Community Diversified Supply Chain Healthy and PerformanceStrategies
Business Employee Life Service and Products Sustainability Harmonious
Performance Care Philanthropy After-sales Industry Environmental Openness and Service Product Development
Protection Employee Transparency of Innovation
Diversity Environment Information
Annual Reports
and Periodic Employee Hotline
Public Disclosure Information Employee Customer
of Information Releases
Providing Jobs Feedback Industry
Official
Representative Collection Seminars Website and
Debriefing and Annual General Organization of Conference Supplier Helping Rural WeChat
Communication Meeting Public Welfare Customer Conference RevitalizationActivities Participating in of Daily Employee Satisfaction the Compilation Media
Operations Official Website Training Survey Supplier Review Organization of
Investor Participation
of Industry Interviews and
Public Welfare Standards Cooperation
Responses Regulatory Relations Column in Community Chairman Building Customer Bidding Meeting ActivitiesAssessment Mailbox Complaint Project
Reception of Information Investor Hotline Hotline Cooperation
Visitors and Mailbox Improvement Disclosure Staff Activities of Local
Infrastructure Customer Online Exchanges and Green and Investor Support for and Offline
News
Learning
Low Carbon Reception Day Employees in Activities
Promotion
Operation Difficulty
Performance
Briefing
1202 Environmental Initiatives for I Green and Digital Development
II
III
IV
V
VI
Green Intelligent Manufacturing and Low-carbon Production
Ecological Conservation and Responsible Contributions
Pioneering Efforts to Address Climate Change
13Green Intelligent Manufacturing In proactively implementing the philosophy of green development and
and Low-carbon Production vigorously promoting the green transformation of industries LONCIN stood out with the design of LONCIN Green Landscape Industrial Park supported
I by the green development philosophies widely used in terms of product
sustainability innovation low-carbon operation of the industrial park and
II ecological environmental protection of the industrial park which became a
model of green development in the industry.III
IV The industrial park proactively bui lt a green
ecosystem carried out large-scale afforestation
V and landscape greening projects and the greening
VI coverage rate reached more than 25% which
effect ively improved the regional ecological
envi ronment . Dr iven by sustainable product
innovation LONCIN's Green Landscape Industrial
Park design theme was underpinned by ecological
protection realizing the positive interaction between
industrial development and ecological environmental
protection.the positive
interaction
between industrial
development
and ecological
environmental
protection
>
｜ Green Landscape Industrial Park ?
sustainable
product
6: The picture was from the “LONCIN People LONCIN Events innovationLONCIN SPIRIT” photography competition organized by the Trade ecological
Union of LONCIN and the picture was taken by LONCIN’s employees protection
in the Company's industrial park. 14I
II In terms of sustainable product
III
IV innovation LONCIN is committed
V
VI to creating forward-looking and
sustainable products.Portable Energy Storage Power Supply EP600
The R&D of motorcycles and related parts in the industrial park has always
adhered to the concept of green design to reduce the environmental
impact of the whole life cycle of the products from the source. For
example in the R&D of motorcycle power systems it has continuously
explored energy-efficient technologies to improve fuel economy and reduce
exhaust emissions and has actively promoted the R&D and innovation
of electric motorcycles and hydrogen fuel cell motorcycles to take
practical actions to help the green and low-carbon transformation of the
transportation sector. In addition we focus on the sustainable selection of
product materials giving priority to the use of recyclable and biodegradable
materials in order to protect the performance of the product while
minimizing the consumption of resources and the generation of waste. The
Company's portable energy storage power supply EP600 won two awards
in France and the U.S.: a golden award in the French Design Award and a
platinum award in the American Good Design Award which highlighted our
international leadership in the field of green product innovation and design.
151.Digital Transformation Driven by Intelligent Manufacturing
LONCIN has responded proactively to the call for low-carbon transformation of the manufacturing industry and actively
I pushed forward the upgrading of workshop digital intelligence which has had a significant positive impact on low-carbon
emission reduction in various aspects while improving production efficiency and product quality. The Company highly values
II the digital intelligent transformation and continues to increase investment in related fields with a cumulative investment of
up to RMB 4 billion. Through unremitting efforts seven digitally intelligent benchmarking factories have been successfully
III built. These factories use advanced digital technologies intelligent equipment and efficient management systems to
automate and fine-tune the control of the production process effectively improving production efficiency and product
IV quality. In addition relying on the rich quality control experience accumulated through years of in-depth cooperation with
BMW the Company has always implemented the “Fine Workmanship” value proposition of “Fine Workmanship ExcellentV Quality Control”. The Company has established a perfect quality management system and strictly controls every phase from
raw material procurement production and processing to product testing to ensure that the quality of products reaches the
VI standards of leading companies in the industry such as BMW. At the same time through the continuous optimization of the
production process strengthening the staff training and constantly improving the degree of refinement and stability of the
products we are committed to creating a model of excellence in the industry of fine workmanship manufacturing.LONCIN has constructed an advanced energy The digital intelligent upgrading also provides strong
management system in the process of workshop support for LONCIN's green innovation in the product
digital intelligent upgrading. With the help of a large design and R&D stages. Using digital design tools and
number of sensors the system is able to collect real- simulation & analysis software the Company is able to
time and accurate data on the energy consumption of accurately predict and optimize the carbon emissions
various types of equipment in the workshop covering of its products at the product design stage and at the
a wide range of energy types such as electricity heat factory stage to ensure that the motorcycles shipped
and water. Through in-depth analysis of these data from the factory comply with the relevant carbon
the energy management system can clearly show the emission standards. In the process of motorcycle
distribution and trends of energy consumption. Based engine design the optimal design scheme is selected
on our energy consumption we will continue to adapt
Intelligent Production Workshop by simulating the combustion efficiency and exhaust and implement targeted energy optimization strategies. emissions of the engine under different design schemes
so as to improve fuel utilization and reduce exhaust
emissions.By introducing an intelligent production scheduling
system the Company can effectively adjust resource
allocation and improve production efficiency. In the In addition the Company uses wind tunnels to
production process with the help of an intelligent accurately simulate the motorcycles' interaction with
production schedul ing system the reasonable the air while driving helping designers to optimize the
distribution of production tasks and efficient operation shape of the motorcycle. Through extensive testing
of equipment are realized according to the order and adjustments in the wind tunnels the motorcycles
demand equipment status and raw material supply. can be made to have smoother body lines and less air
By optimizing the production scheduling the idle time resistance. This not only enhances the motorcycle's
of the equipment and the waiting time of the material maneuvering performance and driving stability but also
are reduced and the utilization rate of the equipment reduces fuel consumption and power loss and realizes
is improved. After the introduction of the intelligent the product's green innovation.production scheduling system energy consumption is
significantly reduced at the same production scale thus
effectively reducing carbon emissions in the production
process.Wind Tunnel Test
162.Clean Energy Application and Energy Conservation and Hydrogen energy products
Emission Reduction Technology Upgrade
I While actively upholding the concept of green development and promoting energy
transformation LONCIN makes robust investments in the research development
II and application of hydrogen energy products securing its distinctive advantages
in environmental protection endeavours and providing strong support for the green
III In response to the global promotion transformation of the industry.of green development and sustainable
IV development LONCIN is proactively The hydrogen energy products produced by LONCIN boast of the core technology
engaged in the application of clean energy highlighting the efficient utilization of hydrogen fuel cells. The products solely use
V and the upgrading of energy-saving and hydrogen and oxygen as raw materials in operation and generate electricity through
emission reduction technologies which an electrochemical reaction to power the equipment which achieves zero carbon
VI is not only an inevitable choice to comply emission in earnest as the process emits only water. Different from traditional fuel-
with the trend of the times but also a powered products these products have fundamentally eliminated the emission of
key approach to realizing its long-term massive greenhouse gases produced by burning fossil fuels such as carbon dioxide
development. We proactively respond to nitrogen oxides particulate matters and other pollutants thus mitigating atmosphericthe national strategy of “Carbon Peaking pollution by a large margin.and Carbon Neutrality” accelerate the
transformation of energy-saving travel and
energy-saving manufacturing strengthen
the upgrading of energy-saving and H 2 O 2
emission reduction technologies and hydrogenium oxygen
make every effort to improve the energy
efficiency of traditional drive technologies. In terms of technology innovation LONCIN is a pioneer in the thermal partition design
of an entire vehicle that has been applied to hydrogen fuel-cell all-terrain vehicles
among others. This technology significantly improves the performance of hydrogen
fuel cells and the specific power of an electric pile passed the 2.2kw/kg mark which
ensures efficient energy conversion and use along with the extended endurance
Green Transportation Products mileage and the augmented stability and reliability of the products in practical
application.The successful research development and application of electric and hydrogen
new energy products are of great significance to advance the related industries toward
energy digital intelligent green and low-carbon development. It has not only provided clean efficient power
solutions for various fields but played a pioneering and leading role in transportation
industrial operations among others driving the industry to accelerate the green energy
transition.LONCIN believes that new energy digitalization and recycling sustainability are
the future of transportation and general machinery. To this end LONCIN adheres
to the philosophy of sustainable development continuously optimizes its
product mix and develops new energy digital and intelligent products. With a
diversified and powerful mix of new energy products LONCIN demonstrates its
resolve to transition to a low-carbon future. By the end of 2024 we successfully
launched the XWOLF EV10 an innovative electric ATV product the EF40X a
new all-electric motorcycle positioned for off-road use on forest roads and the
EC15/30 a new all-electric model positioned for individual urban commuting as
well as developing emerging technologies such as hydrogen fuel cells.Hydrogen Fuel-Cell All-Terrain Vehicles
17Electric energy products
I
LONCIN actively reduces the carbon LONCIN has continued to strengthen its The introduction of the XWOLF EV10 electric
II footpr int of i ts products through technical research and product development ATV EF40X EC15/30 and other models has
electric energy technology innovation in electric energy products by centering on set a new benchmark for the electric off-
III and is committed to providing green the brand positioning of electric playful road motorcycle industry with their advanced
and environmentally friendly products
IV and services to actively respond to locomotives. We have developed the XWOLF technology and excellent performance.climate change. In addition in response EV10 electric ATV which is equipped with an Its green and environmental ly fr iendly Vto the national “Carbon Peaking and automotive-grade 291V high-voltage platform characteristics are in line with the nationalVI Carbon Neutrality” goals we continue and a high energy density high discharge “Carbon Peaking and Carbon Neutrality”
to improve the performance of electric multiplier ternary lithium pouch cell 14.5kWh strategic goals which is of great significance
energy products focusing on research which realizes a fast charging capability with in promoting the popularization of green travel
and development of products with
lower energy consumption longer a full charging time of 2-3 hours. Ensure and energy saving and emission reduction in
range and longer bat tery l i fe to efficient energy use strong power long the field of transportation.implement the philosophy of green range and continuous working capability
environment protection and revolutionary of the vehicle. The XWOLF EV10 electric
technological innovations and create a ATV produces no direct carbon emissions
better future of green transportation for ·no direct carbon emissions
during operation eliminating carbon dioxide
consumers. ·eliminating carbon dioxide
emissions from fuel combustion at the emissions from fuel combustion
source. This is not only in line with the
at the source
urgent global demand for environmental
protection and sustainable development but ·reducing greenhouse gas
Carbon lower energy emissions
consumption also a practical action to contribute to theNeutrality achievement of China's “Carbon Peaking and ·improving air qualityCarbon Neutrality” goals. With its outstanding
longer range advantage of zero exhaust emissions it plays
a positive role in reducing greenhouse gas
emissions and improving air quality and it
Peak Carbon longer battery life provides a green travel mode for the majority
Dioxide Emissions of off-road enthusiasts.XWOLF EV10 Electric ATV
182）Energy Conservation and Emission Reduction Technology Upgrade
I
Energy-efficient transportation
II
Not only does LONCIN provides new energy vehicles but it is also committed to optimizing the efficiency
III
of traditional fuels through technological innovation and sustainable development. With regard to traditional
IV fuel vehicles and general machinery LONCIN makes every endeavour to develop energy conservation and
emission reduction technologies in an effort to reduce carbon emissions and realize the value of every
V drop of fuel. The resounding success is attributable to our unwavering pursuit of and firm commitment to
energy conservation emission reduction and sustainable development. While creating the unique pleasure
VI of driving LONCIN dedicates itself to energy conservation and consumption reduction and by doing this
undertakes more responsibilities for the environment and society.SR150GT H Model of the First Mass-Produced Hybrid Scooter in China
In recent years with the increasing awareness of environmental protection and the gradual adjustment
of the energy mix greater importance is attached to the application of energy conservation and emission The power platform applies the WMTC circulation system and two energy
reduction in general machinery manufacturing. To achieve energy conservation and emission reduction recovery modes using braking force and downhill coasting to realize energy
technology upgrade LONCIN raises the utilization rate of fuels and reduced exhaust emissions by conservation and consumption reduction.optimizing the engine combustion technology so that the engine can accommodate different working
conditions with the best combustion to effectively cut down fuel consumption and exhaust emissions.In the meantime lightweight design is also one of the important approaches to energy conservation and Compared with traditional power platforms its performance increases
emission reduction. Applying new materials such as aluminum alloy and carbon fiber makes the whole by 20% within the range of 0-60km/h and 25% within the range of
body of a motorcycle lighter to reduce energy consumption while driving thereby accomplishing the goal 30-70km/h.of energy conservation and emission reduction.In the charging process the model comprehensively improves charging
Moreover we roll out the SR150GT H model of the first mass-produced hybrid scooter in China deemed efficiency by controlling the three-phase bridge circuit with charging
to be a breakthrough in energy conservation and emission reduction of motorcycles. The V-HEV hybrid and discharging efficiency rising to 98% and charging losses as low as
technology platform entailed in the model is a brand-new power unit produced by the Company based on 5%.the automotive-grade 48V hybrid architecture and by reference to multiple exclusive technology patents
enabling users to experience powerful impetus and realize energy conservation and consumption reduction
in driving. In the sector of traditional fuel engines LONCIN launches the first
mass-produced engine using the electric fuel injection system such as
the LC series of general-purpose engine products
with a decrease of 20% in fuel consumption and the air-fuel ratio in a
carburetor a reduction of 90% in carbon monoxide emissions and an
increase of 5% in engine power.As for the electric injection force the products use porous injectors
to prevent the formation of oil films and ensure complete combustion
resulting in reduced emissions hazardous gas emissions in
particular with the support of a controllable digital ignition system.SR150GT H Model of the First Mass-Produced Hybrid Scooter in China
192）Energy Conservation and Emission Reduction Technology Upgrade
I Energy-efficient manufacturing
II Furthermore LONCIN prioritizes energy conservation and emission reduction in
the production process. A package of measures is put in place to reduce energy
III consumption and pollutant emissions during production through upgraded
production process energy-efficient equipment and reinforced energy
IV management. The introduction of an intelligent production system helps realize
automation and delicacy management of the production process improve
V production efficiency and reduce energy waste and environmental pollution.VI
July 2024 saw an extremely
severe challenge in the electricity
supply guarantee in Chongqing.In order to mitigate this situation
LONCIN issued the Electricity The following is a comparison of the increases in sales revenue installed capacity and energy
Saving Initiative for a Smooth consumption expenses in the same period of 2024 and 2023. By comparison the increase of utilities
Transition to 2024 Summer was less than that of sales volume and the increases of total sales installed capacity and utilities
Electricity Consumption Peak were 32.02% 26.41% and 12.51% respectively for the period from January to December. Overall
with a view to calling upon all the increase of utilities was lower than that of installed capacity meaning that effective energy
employees to save electricity and conservation was achieved in the production process.alleviating the strong demand for
public electricity.As part of these efforts
electricity-saving posters
were displayed in the factory
to advocate for conserving
electricity and slogans pertaining
to “Zero-Waste Factory” created
in 2024 were posted for publicity
in Zone B of the factory.The Company promotes green product design and creates a green supply
chain through the stringent control of those projects featuring higher energy
consumption and more emissions. All departments (workshops) are engaged in
clean and energy efficient production to conserve raw and auxiliary materials from
the source and reduce energy consumption from the root with the production The following is a comparison of the electricity consumption for manufacturing a single product
process and equipment with lower energy consumption and fewer industrial waste between January and December 2024 with the same period in 2023. By comparison the average
emissions adopted on the premise of assuring product quality and production electricity consumption for manufacturing a single product was 1.368kWh in 2024 a year-on-
efficiency thereby achieving better results in energy conservation and cost year decrease of 0.083kWh as compared with 1.451kWh in 2023 and the energy consumption for
reduction. manufacturing a single product reduced by 5.7%.
203.Practices of Green Factory and Circular Economy
I Green development is fundamental to the high-quality development of enterprises and also the
key to sustainable growth of economy and society. LONCIN has always adhered to the corporate
II vision of “A Leading Brand with a Low-Carbon Power System and Intelligent Products”. On
the one hand LONCIN makes continuous efforts to improve product quality and innovate
III technologies and commits itself to providing consumers with products of excellent quality and
IV high performance with a great sense of responsibility and mission; on the other hand LONCIN
builds a profound understanding of the great significance of green development incorporates
V the concept of sustainable development into enterprise operation and management on all fronts
and at all levels and performs its corporate social responsibility in real earnest.VI
In the course of the production process LONCIN proactively responds to the national call for
energy conservation and emission reduction vigorously promotes the application of advanced
technologies in that regard and optimizes the production process in an all-round way to
effectively improve the efficiency of energy use and reduce waste emissions by a large margin.Thanks to a host of practical and effective initiatives we demonstrate the concept of the
green factory with practical actions set a good example for the sustainable development of
the industry and make positive contributions to the green transformation of the economy and
society.Intensive land use
1）“National Green Factory” On the way to energetically promote green development and actively build the “National GreenFactory” intensive land use holds extreme significance and has a deep positive impact on the
The manufacturing industry is now at the critical juncture of the green and low- construction of green factories in various aspects. For this reason LONCIN redoubles efforts to push
carbon transformation wherein the “National Green Factory” as a pacesetter forward the construction of U-shaped production lines in production workshops.plays a fundamental and guiding role of prime importance. This honorary title bears
testimony to the work we have done in core areas such as intensive land use and The move is taken to optimize equipment layout by adopting the U-shaped production lines to
green logistics as well as our high standards and comprehensive strength in terms of realize tight equipment connection among various production processes which can shorten the
green manufacturing to be an industry leader. transportation distance between processes avoid great space being occupied by long-distance
transportation channels as a result of the traditional linear layout thus improving the space utilization
of the factory and saving land area. For example the equipment for the frame welding components
and parts assembly and other processes is arranged in a U-shape bringing about an efficient flow
of materials and semi-finished products between processes and eliminating the need to reserve a
wide transportation channel. By doing this additional space is reserved for personnel activities as
the U-shape production line facilitates the realization of one-person-multiple-machine operation
allowing one worker to simultaneously operate multiple equipment in the production line area. This
not only reduces the walking distance of personnel but also releases more space as necessary for
scattered working areas thus lowering the requirement for factory size.From the perspective of efficient resource utilization intensive land use can remarkably improve
the utilization rate of land resources. The “National Green Factory” is constructed through rational
planning and layout compact workshop design scientific planning of functional zoning and compact
layout of various links such as components and parts processing and complete vehicle assembly.Through these efforts space redundancy is reduced as much as possible in the production process
so that limited land can accommodate more production activities to maximize land value which aligns
with the core requirements for efficient resource utilization in green development.
21Green logisticsIn order to uphold the concept of green development and processing to reduce packaging costs and improve economic LONCIN has been awarded the title of “National Greenaccelerate the construction of green factories in full swing green efficiency. Throughout the year of 2024 the Company used Factory” representing not only a high recognition of our I
logistics is the key to the development of the green manufacturing 136390 recyclable wooden pallets 1923 recyclable wooden in-depth exploration and continuous investment in the
system and has a profound impact on the construction of green crates 2004 recyclable plastic boxes and 4607451 recyclable green manufacturing field for long but a proof that we have II
factories in an all-round way. Developing green logistics is cartons among which the number of wooden crates and plastic made a solid and robust stride in implementing the concept
conducive to the efficient allocation and utilization of resources boxes decreased by 93% and 80% respectively compared with of sustainable development and advancing the progress III
and the prominent reduction of environmental pollution resulting 2023 and more environmentally friendly recyclable cartons were of green development as well. Going forward LONCIN will
IV from transportation and packaging thereby making the goal of used. take this opportunity to continuously deepen the green
clean production come true in green factories. manufacturing practice play a greater role in guiding and
V Moreover LONCIN further advances the construction of green leading the green and low-carbon transformation of the
With regard to efficient resource utilization we adopt low-carbon factories in terms of low-carbon energy and plant greening. manufacturing industry and make positive contributions to
VI transportation continue to promote such means of transportation LONCIN values the use of low-carbon energy by laying out solar the comprehensive green transformation of economic and
as rail and sea transportation and vigorously develop low-carbon photovoltaic panels on the roofs of the factory vacant land social development.and multimodal transportation aiming at cutting down energy and other areas to make full use of renewable energy sources.consumption throughout the logistics and reducing a waste of At present the photovoltaic power generation capacities are
resources in logistics operations to ensure limited resources 3100kWh per day and 93000kWh per month the cumulative recyclable wooden pallets 136390
accessible to the production and operation of green factories power generation capacity is 162MWh and the cumulative
in a more precise and efficient manner in line with the goal of carbon emission reduction is 44.2 tons. Measures are also taken recyclable wooden crates
pursuing efficient utilization of resources in green factories. in plant greening along with the dedicated formulation of the
1923
Implementation Rules for Greening Maintenance Management recyclable plastic boxes 2004
In respect of green product packaging we use recyclable cartons applicable to the placement and maintenance management
to package motorcycles engines and general machinery so of indoor and outdoor plants in the industrial park and the
as to effectively reduce the environmental pollution resulting maintenance of an amicable green environment in the industrial
recyclable cartons 4607451
from packaging wastes minimize a waste of resources and park so as to strengthen the greening management in the
assist in implementing the concept of sustainable development. industrial park and make the greening work of the industrial park
Furthermore recycled cartons are reused in production after standard and institutional.Implementation Rules for Greening Maintenance Management 222）2)“Zero-Waste Factory” in Chongqing
Indicator FY2024 data FY2023 data FY2022 data Unit
I
Tons
While the concept of green development is firmly upheld and ecological Total general solid waste 448.81 189 195
II civilization is fostered at the same time active efforts are made to Emission intensity of Tons/RMB
III facilitate the construction of “Zero-Waste City” in Chongqing. “Zero- 0.03 0.01 0.02general solid waste Million in RevenueWaste Factory” as its important component has strict requirements for
IV enterprises in terms of comprehensive utilization of resources waste Total recycling of general 448.81 189 195 Tons
V minimization and harmless treatment.solid waste
Total emission of 4630.25 487.99 421.77 Tons
VI In active response to relevant policies of Chongqing LONCIN takes hazardous waste
the initiative to apply for “Zero-Waste Factory”. As a support it sets Emission intensity of Tons/RMB
great store by the application process through the establishment of a hazardous waste 0.28 0.03 0.04 Million in Revenue
leadership group tasked with the creation of a “Zero-Waste Factory”
and scientific organization and planning. In the production and operating
practice our company vigorously innovate the green production process In terms of energy the Company develops a complete resource recycling industry chain
to cut down the generation of wastes from the source. The introduction to convert the wastes in the production process into reusable resources. A wastewater treatment system is put in place in the production workshop for the advanced treatment
of advanced production equipment and technology facilitate delicacy of wastewater generated in the production process which realizes the recycling of water
management of raw materials and effective reduction of materials loss resources and significantly reduces the consumption of water resources. The Company
in the production process. further utilizes waste heat recovery technology to recycle the waste heat generated in the
production process for heating or power generation thereby improving the comprehensive
Additionally LONCIN advances the development of greener production utilization efficiency of energy.process in full strength. The introduction of advanced intelligent
manufacturing technology and automation equipment has helped realize LONCIN's achievement in building the “Zero-Waste Factory” is not only reflected in energy
precise control of the production process effectively reducing the conservation emission reduction and efficient utilization of resources within the enterprise
loss of raw materials. During the processing of components and parts but sets a positive example for the green development of the industry. We are ready to
high-precision processing equipment and optimized process flow has share our construction experience and promote the construction of a green supply chain
improved the utilization rate of materials and cut down the generation with upstream and downstream enterprises with an aim to advance the green transformation of the entire industry by driving the upstream and downstream enterprises of the industrial
of waste materials. The Company has also proactively explored the chain to strengthen waste management and resource recycling.application of new materials and prioritized the use of recyclable
and biodegradable environmentally friendly materials to cut down the
generation of wastes from the source.LONCIN also develops a full-fledged resource recycling system for
waste treatment. The industrial solid waste hazardous waste domestic
waste and other wastes generated in the production process are
collected by category and treated appropriately. The high-value
recycling of wastes has been achieved by cooperating with professional
recycling enterprises and setting up oil filters. In the meantime LONCIN
is active in researching the harmless treatment of wastes to ensure that
all types of wastes have no negative impact on the environment.
23E c o l o g i c a l C o n s e r v a t i o n a n d
Responsible Contributions战
I略领航
II
III
IV
V
VI
940.99 RMB Ten Thousand
Investment in environmental protection
To act on Xi Jinping Thought on Ecological Civilization and comprehensively
implementing the national decisions and plans of great significance on Indicator Investment in Unit
strengthening ecological conservation and promoting biodiversity conservation environmental protection
LONCIN displays a strong sense of social responsibility actively engages in the
cause of ecological conservation and deepens the integration of the ecological Investment in environmental 940.99 RMB Ten Thousand
conservation concept into the whole process of the enterprise's development protection in FY2024
strategy and production and operation so as to make contributions to protecting
lush mountains and lucid waters and achieving harmony between humankind and Investment in environmental
nature. RMB Ten Thousandprotection in FY2023 880.00
We have worked hard to reduce resource consumption to the greatest extent
at all stages of production for less impact on the environment including the Investment in environmental 140.00 RMB Ten Thousand
management and emission reduction of greenhouse gas water resource protection in FY2022
conservation and recycling and the emission reduction of wastes and volatile
organic compounds etc. In 2024 we invested a total of RMB 9409900 in
environmental protection an increase of 6.9% compared with 2023.
241.GHG Management Initiatives and Results
I
II
1）GHG Emission Reduction TargetsIII 4）GHG Emission Reduction Measures
IV For the present the Company has been promoting energy conservation and carbon reduction in an orderly manner To improve energy efficiency we introduce an advanced energy management mechanism with
and adopting a series of measures to support the achievement of carbon reduction targets in an effort to realize
V smart meters sensors and control equipment installed to monitor energy consumption in the the harmonious coexistence of sustainable development of the enterprise and ecological environment. It plays an production process in real time. Based on the collected data we analyze the energy use in an
VI active role in leading the industry to achieve sustainable development with high quality wholeheartedly supporting
the national “3060 Carbon Peaking and Carbon Neutrality Strategy” and striving to achieve carbon neutrality by in-depth manner identify high energy-consuming links and equipment and then optimize the
2058. It also strives to significantly reduce Scope 1 and Scope 2 GHG emissions in the production and operation approaches to energy distribution and use. On the production line energy is supplied precisely
process and mitigate the adverse impact on the climate and environment. according to the actual needs of different processes to avoid energy waste thereby improving
the overall energy efficiency.
2）GHG Management Systems We advocate for low-carbon office by encouraging our employees to adopt double-sided
printing reduce paper use and implement other possible measures to reduce resource
consumption throughout the work. As a complement we promote the use of energy-efficient
home appliances and office equipment such as energy-efficient air-conditioners and energy-
Indicator FY2024 data Unit efficient computers to reduce energy consumption in the office area thereby cutting down
greenhouse gas emissions accordingly. Furthermore our employees are motivated to purchase
Accounting for the average carbon 424.72 ? Kilograms of CO2 electric vehicles instead of fuel vehicles for commuting to reduce carbon emissions on the footprint of products equivalent way to work.GHG emissions (Scope 1) 18932.44 ? Tons of CO2 In 2024 the number of electric vehicles held by employees was 387 an increase of 101% equivalent compared with 2023 while the number of fuel vehicles held by employees only increased by
28% during the same period resulting in a significant decrease in carbon emissions from
GHG emissions (Scope 2) 136348.10 ? Tons of CO2 employee commuting.equivalent
Indicator Vehicle holdings Unit Increase
3）GHG Management Systems
Holdings of electric vehicles Vehicle
among employees in 2024 387 101%
In order to further reduce greenhouse gas emissions and strengthen greenhouse gas Holdings of electric vehicles among employees in 2023 193 Vehicle
management LONCIN strictly abides by the Environmental Protection Law of the People's
Republic of China and other regulations. In addition we formulate targeted internal Holdings of fuel vehicles among 3152 Vehicle
systems such as the Wastewater Waste Gas and Solid Waste Management Measures the employees in 2024 28%
Measures for the Prevention and Control of Waste Gas Pollution and the Measures for the Holdings of fuel vehicles among
Environmental Management of Related Parties. employees in 2023 2456
Vehicle
7 For the product life cycle assessment select the average raw material usage amount for the production of a single product adopt Green Delta’s “Open LCA” software the standards in IPCC Guidelines for National Greenhouse Gas Inventories and the “ReCiPe 2016 Midpoint (H)” calculation method.
8 Scope 1 GHG emissions = Total GHG from annual consumption of natural gas used for production + Total GHG from annual consumption of diesel fuel used for production + Total GHG from annual consumption of gasoline used for production with reference to the emission factors from the data source: GHG Emission Database (https://data.ncsc.org.cn).
9 GHG emissions of Scope 2 = Total GHG from total annually purchased natural gas + Total GHG from total annually purchased electricity with reference to the emission factors from the data source: GHG Emission Database (https://data.ncsc.org.cn) the Ministry of Ecology and Environment’s “Carbon Footprint Factor Data for Electricity in 2023”.
252.Water Management Initiatives and Results
5）Wastewater Discharge Reduction Measures
III Wastewater resulting from various production processes in the factory including 1）Water Management Objectives demoulding wastewater generated in the die-casting workshop cleaning wastewater in
III the painting workshop emulsification wastewater in the machining workshop and oily
To better conserve water resources LONCIN has improved the efficiency of water wastewater generated in the engine performance test together with domestic effluents
IV resources and raised the awareness of water conservation among employees. A wide are all collected in a comprehensive manner through the well-established effluent pipeline
range of effective measures are taken for example reducing water consumption and
V wastewater discharge aiming at the sustainable development of the Company. Meanwhile
system. Afterward all the wastewater is transported to the wastewater treatment station
it plays a due role in performing social responsibilities and making contributions to the in the factory.VI protection of water resources and the environment.The wastewater treatment station is equipped with advanced treatment facilities for the
2）Water Management-Related Data advanced treatment of various types of wastewater with the capacity to treat 150 tons of
wastewater per hour in full-power operation. The treated wastewater can be discharged
into the effluent pipeline network of the industrial park only after reaching the Tier 3
Indicator FY2024 data FY2023 data FY2022 data Unit discharge standard thus effectively reducing the impact on the environment. In 2024 the
Company generated 500300 tons of wastewater a decrease of 11% compared with 2023
Total water consumption 114.76 99.44 98.80 Ten Thousand Tons and reused 46800 tons of recycled water in the effluent treatment station with a water
Density of water consumption 0.01 0.76 0.80 Tons/RMB reuse rate of 9.4%.Ten Thousand in Revenue
Total wastewater generated 50.03 56.10 39.48 Ten Thousand Tons Sludge Thickening
Intensity of wastewater discharge 0.003 0.43 0.32 Tons/RMB Ten Thousand in Revenue Ground
Synthetical Oily Separation Regulating Demulsification
Wastewater Tank Pond Settling
3）Water Conservation Measures
To achieve the goal of conserving water resources and improving the efficiency of
water resources LONCIN creates a strong atmosphere for all to participate in water 1 2 3 4 5
conservation by carrying out water conservation publicity activities to see that the
awareness of water conservation is deeply implanted in the minds of everyone and
water conservation actions are transformed into employees’ conscious behaviours in
real earnest. Besides we actively innovate technologies introduce advanced water
conservation processes and equipment and further optimize the water use of the
production process.
4）Water Management Systems
9876
To fulfil water conservation goals intensify water management and implement
wastewater treatment processes LONCIN strictly complies with the Water Pollution
Prevention and Control Law of the People's Republic of China the Environmental Protection
Law of the People's Republic of China and the Circular Economy Promotion Law of the Biochemical Synthetical Filtration Air
People's Republic of China among other laws and regulations. In addition we have Pond Wastewater
formulated targeted internal systems such as the Wastewater Waste Gas and Solid Waste Flotation
Management Measures the Drinking Water Management Measures and the Wastewater Regulating Pond
Discharge Management Measures. Wastewater Treatment Process
263.Energy Management Initiatives and
Energy-Efficient Technology Achievements
I
3）Energy Management Systems
IIIII 1）Energy Management Objectives To further make energy management standard and institutional in the
IV Company’s production process the Company has worked out the Energy
LONCIN is a faithful champion for the national strategic policies on energy Management Measures Equipment and Special Equipment Management
V conservation emission reduction and green development as it proactively Measures and other relevant systems for the present. Moreover the
VI responds to the national call takes energy conservation as a strategy of great Company's Energy Efficient Production Leadership Group gives full play to its
significance for enterprise development and makes every effort to accelerate leadership role to further establish and improve the energy efficient production
the formulation and implementation of energy conservation targets with a mechanism and implement the energy efficient production policies and goals
strong sense of social responsibility and mission. among others.
2）Energy-Related Data
To further fulfil energy conservation and carbon reduction targets and tasks Review Optimization Training
set out in the “14th Five-Year Plan” and secure solid progress in energy
conservation and carbon reduction the Company adopts a number of effective
energy conservation and emission reduction measures. Thanks to the support
of many other parties it made outstanding achievements in 2024 and the
energy consumption data in 2024 were as follows:
4）Energy Management Measures
Indicator type Indicator FY2024 data FY2023 data FY2022 data Unit
Purchased 12636.45 10686.08 8867.00 Ten Thousand To achieve more efficient energy management the Company conducts regular
Electrical electricity Kilowatt Hours energy efficiency inspections of workshops formulates plans for updating and
energy Intensity of Kilowatt Hours/RMB replacing high energy-consuming equipment examines and rectifies the waste
electricity 0.008 81.78 71.45 Ten Thousand
consumption in Revenue of resources in the production process of the factory and optimizes the effect
of energy efficient production of the enterprise. Meanwhile relevant education
Gas consumption 861.48 686.8 654.57 Ten Thousand Cubic Meters and training courses are held to train and teach new employees about the
Gas management of energy-efficient production enabling front-line production
Intensity of Cubic meter/RMB 0.0005 5.26 5.27 Ten Thousand in employees to deepen their understanding of energy-efficient production and gas consumption
Revenue build up their awareness of energy efficiency.
274.Biodiversity Conservation 4）Biodiversity Conservation Measures
LONCIN is committed to protecting and
I expanding the natural ecological space in
the factory and its surrounding areas and
II carrying out ecological transformation of
vacant land in the factory e.g. increasing
III green area by means of tree planting and
afforestation to create diversified ecologicalIV 1）Objectives of Biodiversity Conservation habitats and planning and building ecological
V corridors in the factory to provide space for In active response to the national biodiversity conservation strategy LONCIN has flora and fauna to inhabit reproduce and
VI thoroughly recognized the significance of biodiversity conservation for maintaining migrate in an effort to promote the natural
ecological balance and promoting sustainable development and put biodiversity restoration and growth of biodiversity. In the
conservation on the corporate development agenda of great importance. A wide meantime the design of our office buildings
range of measures are taken to advance the further development of biodiversity and the like adopt the decoration style of
conservation. faux-brick exterior to minimize the use of
glass curtain walls which can mitigate the
risk of bird impacts protect bird resources
2）Biodiversity Conservation-Related Data and preserve species diversity of the
ecosystem in an effective manner.Ecological Corridors in the Industrial Park
Indicator FY2024 data Unit
Green Building Design in the Industrial Park
Greening coverage of Zone A 24.1% /
Greening coverage of Zone B 26.1% /
Greening coverage of Zone C 25.1% /
3）Biodiversity Conservation Management Systems
To further intensify biodiversity conservation in surrounding areas of the Company
we have formulated the Implementation Rules for Greening Maintenance Management
Implementation Rules for Cleaning and Sanitation Management Harmful and Hazardous
Substances Management Measures Noise Management Measures and other
relevant management measures to ensure the green and environmentally friendly
development of the industrial park. In addition a wide range of management
measures have been adopted to ensure biodiversity conservation in the upstream
and downstream of the supply chain in an effort to achieve the green development
of the entire industrial chain.
28Pioneering Efforts to Address 1.“Carbon Peaking and Carbon Neutrality” Goals
Climate Change
I In active response to the national strategic goal of “Carbon Peaking and Carbon Neutrality”
the Company sets the following dual-carbon goals: bring greenhouse gas emissions to a peak
II by 2028 and become carbon-neutral by 2058; cut Scope 1 and Scope 2 emissions by 20%
from fiscal 2019 levels by 2030. In the meantime the Company will develop scientific carbon
III goals no lower than the goal set in the Paris Agreement of limiting temperature increase to
IV below 2 Celsius which will be assessed and verified by the Science-Based Carbon Targets
Initiative (SBTi) in the future in an effort to create experience in addressing climate change for
V the industry. On the supplier side carbon accounting of at least 80% of suppliers is expected
to be completed by 2026 with customized carbon reduction targets developed in a rational
VI manner. By 2027 the Company’s energy consumption of industrial added value per unit will be
reduced by 13% compared with 2022 and significant progress will be made in energy resource
utilization and green manufacturing.
2.Climate Risk Management and TCFD Framework Response
The Task Force on Climate-related Financial Disclosures (TCFD) framework
is designed to help companies identify assess and disclose climate-related
risks and opportunities. We actively integrate the climate risks we face with
the TCFD framework comprehensively identify and assess climate-related
physical and transformational risks systematically sort out potential risks and
formulate coping strategies in advance so as to enhance our ability to cope with
uncertainties and reduce potential losses due to climate risks.
1）Corporate Governance
Against the backdrop of the global active response to climate change LONCIN attaches great importance to climate-
related risks and opportunities as a key issue for the sustainable development of the enterprise carries out scientific
management through a well-established corporate governance system effectively fulfills its corporate social
responsibility and contributes to the green and low-carbon economic and social transformation.a. Board oversight of climate risks and opportunities
In terms of corporate governance structure LONCIN has established a governance system with clear lines of
authority and accountability. The Board of Directors plays a central leadership role in climate-related matters and is
responsible for finalizing the Company's climate strategy objectives and policies overseeing their implementation by
management and ensuring that the Company's strategic direction on climate change issues is correct.b. Management's responsibility for managing climate risks and opportunities
Management under the direction of the Board of Directors is responsible for the implementation of climate-
related risk management and opportunity capture. Based on corporate strategy and assessment of climate risks and
opportunities management formulates clear and quantifiable climate-related targets and response strategies sets
carbon reduction targets and plans specific paths to achieve the targets including investing in green technology
research and development and adjusting the product mix to meet the demands of the low-carbon market etc. so as
to provide guidance for the green transformation of the enterprise.
292）Corporate Strategic Management The Company fully responds to the trend of global energy transformation incorporates Green and Low Carbon into its own strategic planning actively explores the path of product technology transformation and upgrade systematically plans for new energy-oriented travel changes and is committed to setting an example for the industry's green and low-carbon development in
order to promote the Company's and the industry's green and low carbon development and to contribute to the country's realization of the “dual-carbon” goal.ESG-related risk identification and impact
I
Section Environmental risk Social risk Corporate governance risk
II
Type of risk Climate change Resource supply Environmental Global economic Product quality risk Driving safety risk Risks in disclosure and
III risk and demand risk compliance risk volatility risk standardized governance
IV In recent years the Fluctuations in the With the accelerated transformation of the world The global economic Product quality problems may trigger consumer Motorcycles pose a high safety risk Failure to disclose information
frequency and intensity availability and pricing
of extreme weather of raw materials such to a low-carbon economy countries continue to
downturn may lead
to a reduction in complaints returns and compensation damaging mainly due to their poor stability lack
in a timely and accurate manner
V in accordance with the relevant events have been as steel rubber and introduce more stringent environmental policies consumer demand brand reputation and market competitiveness. of protection and vulnerability to regulat ions may jeopardize
increasing with disasters plastics will expose and regulations which has led to increasingly for motorcycles Defective products in terms of driving safety and environmental influences. investors' right to know and
VI such as heavy rainfall the Company to supply higher energy-saving and emission reduction and other products durability not only lead to loss of consumers but trigger a crisis of confidence in
flooding drought and risk. If changes in the affecting the
high temperatures posing international situation standards for the motorcycle industry. This could Company's sales may also expose the Company to lawsuits and
the Company which in turn may
affect the Company's market
Description a direct threat to the or natural disasters result in the Company facing fines production revenue; LONCIN financial compensation increasing operating image and stock price stability.of risk impact Company's production affect the supply of raw restrictions and other penalties for exceeding as an export- costs and financial risks.facilities and supply materials resulting in a oriented enterprise
chain; in addition due significant increase in carbon emissions exposing the Company to may be affected
to the extreme weather prices the Company's legal compliance risks. by exchange rate
travel conditions have production costs will fluctuations in terms
been impacted and increase. of competitiveness
consumer demand for in the international
motorcycles and other market and profits.products has decreased
exposing the Company
to market risk.On the one hand The Company actively The Company tracks changes in climate-related laws and policies in In response to the In order to cope with the risk of product quality the Company may
the Company establishes long-term countries around the world through the establishment of a professional team or the use of external consulting organizations and keeps abreast issue of declining further strengthen the control and management of the production
has increased and stable cooperative of new regulations such as carbon emission standards and requirements market demand process. The Company implements Total Quality Management
its investment in relationships with on the proportion of renewable energy use which provides a basis for the Company has corporate decision-making and enables the Company to plan its response (TQM) in the production process establishes and improves the
the research and suppliers and is deeply expanded into strategies in advance thus avoiding being caught in a passive situation production standard operating procedures clarifies the quality
involved in suppliers'
development of new due to changes in laws and regulations.multiple markets control standards for each production process and further
production planning and and reduced its
energy products such quality control. In the In addition the Company has perfected its environmental management
implements the IATF16949:2016 Quality Management System -
dependence on
as electric motorcycles procurement of core system and formulated strict internal environmental protection standards
Special Requirements for the Implementation of ISO9001:2015
and operating procedures in accordance with the requirements of a single market.The Company responds to motorcycle driving
for Automotive Manufacturing Parts and Related Service Parts
and hybrid engines engine components we laws and regulations in countries in which it operates. The Company Geographically the safety risks from various aspects such as The Company has further strengthened
clarifies the responsibilities of each department in responding to climate GB/T19001-2016/ ISO9001:2015 Quality Management System work with suppliers to Company has been safety education technology research and information disclosure and standardized to reduce carbon legal compliance and assigns the responsibilities to specific positions Requirements etc. The Company regularly maintains and calibrates governance in terms of compliance
emissions and on formulate production actively expanding development and quality control. In terms and personnel. In addition the Company strengthens staff training to its production equipment to ensure that it is in optimal working management and system development.plans lock the share of enhance the awareness and implementation of climate regulations and its domestic and of safety education the Company regularly With respect to information disclosure the the other hand it
supply in advance and further implements GB/T24001-2016/ISO14001:2015 Environmental
condition and to minimize quality fluctuations caused by equipment
international organizes activities to enhance driving safety- Company strictly follows the provisions of
Risk has improved the prioritize the Company's Management System Requirements and Guidelines for Use and Rules for
problems. The Company strengthens staff training improves staff the Company Law the Securities Law the
markets and
adaptability of its the Implementation of Compulsory Product Certification - Motorcycle operation skills and quality awareness so that the staff strictly
related education for users and raise safety Administrative Measures for Information
adaptation/ production needs. When (CNCA-C11-02) (CNCA-00C-005) during the production process launching targeted awareness. In terms of technology research Disclosure of Listed Companies the Rules
products in different follow the standard operation procedures for production to ensure opportunities the price of raw materials to ensure that the Company's whole process of operation meets the products in for Listing of Stocks on the Shanghai Stock
requirements of regulations. product quality. and development the products are equipped Exchange and the Articles of Association adverse weather fluctuates greatly we response to market with millimeter-wave radar and other driver- of the Company to ensure that information
conditions so that stabilize procurement demand. In terms assisting equipment to realize driver-assisting disclosure is in accordance with the laws
they can operate costs by signing annual of products
rules and regulations and to ensure that
functions such as blind-zone detection lane- information disclosure is truthful accurate
normally under a wide framework agreements the Company change assistance and collision warning and complete and that all shareholders
and setting up price has e stablished and potential investors are treated fairly.range of weather and to improve the ability to perceive the adjustment mechanisms. a moderately In terms of standardized governance the
conditions. In addition surrounding environment. In terms of quality Company ensures that there is a clear In addition we actively diversified product control we carry out the forward development division of powers and responsibilities the Company enhances expand our supply family and within among its authority decision-making body
labor protection channels and introduce a reasonable of chassis systems and handling systems and supervisory body and the management
utilize advanced tools to simulate and analyze with each performing its duties and with for its employees new suppliers to reduce range has actively effective checks and balances ensures
by providing them our dependence on a expanded its system functions to eliminate design defects. scientific decision-making and ensures
single supplier. In the product range In addition the Company has set up a strict that the process of convening meetings with the necessary quality control system and a special quality is legal and compliant. The Company
protective equipment procurement of raw to meet the maintains mutual independence from
materials such as steel product needs of traceability system to ensure the consistency its controlling shareholders in terms of
and training to ensure in addition to working a wider range of of the production process and realize zero business personnel assets organization
their health and safety and finances urges key personnel such with traditional suppliers consumers. defects in the delivered products. as directors supervisors and senior
in extreme weather we have developed management to be diligent in their duties
conditions. suppliers from different and protects the legitimate rights and
regions to effectively GB/T24001-2016/ISO14001:2015 Environmental Management System Certification GB/T19001-2016/ISO9001:2015 Quality Management System Certification interests of all shareholders especially small and medium-sized shareholders.reduce supply risks.
303）Corporate Risk Management 4）Indicators and targets
To more vigorously promote the implementation of various initiatives to address climate change
The Company fully considers the impact of climate change on the industry national the Company has clearly defined the carbon emission reduction targets actively carry out
I policies and industry development trends incorporates climate change risks into the targeted emission reduction-related actions to effectively reduce the Company's resource and
overall risk management system of the Company systematically identifies and analyzes energy consumption and effectively contribute to the improvement of the environment and the
II climate risks faced by the Company and formulates corresponding risk management climate which has contributed to the Company's green and low-carbon transformation and
methods and countermeasures promptly to lay a solid foundation for timely and development as well as to the national "dual carbon" goal.III effective avoidance of climate risks grasping of climate opportunities and adoption of The Company is set to achieve further
countermeasures. reductions in Scope 1 Scope 2 and
IV Scope 3 GHG emissions within 10 years
through the addition of carbon offset
V （1）Climate risk identification and assessment projects deep decarbonization and
other technologies. In the long term
VI In order to effectively manage climate-related risks LONCIN has established relevant identification and we will further integrate the concept of
assessment mechanisms. Climate change considerations are fully taken into account in the strategic corporate sustainability into the entire
planning process. Through in-depth market research and industry analysis we assess the changes in plans to achieve a cumulative life cycle of our products ensure that
market demand for our products under different climate scenarios the stability of the supply chain and reduction the carbon emissions of our products
the direction of technological innovation such as increasing R&D investment in the field of new energy 15% are significantly reduced during the use
based on our judgment of the future trend of low-carbon energy. During the investment decision- phase and strengthen product recycling
making process the Company strictly implements a climate risk assessment procedure. For projects a 10% reduction management.with high carbon emissions or susceptible to climate risks prudent assessment and strict screening will in Scope 3 emission intensity
be conducted and priority will be given to investing in low-carbon environmentally friendly and risk-
resistant projects to ensure the long-term and sound appreciation of the Company's assets. Within 3-5 years the Company
plans to achieve a cumulat ive
（2）Climate risk management 15% reduction in absolute carbon
emissions of Scope 1 and Scope 2 a
LONCIN is active in seizing climate-related opportunities. The Company has keenly captured the global reduce the carbon intensity of Scope 1 and Scope 2 by 10% reduction in Scope 3 emission
trend of growing demand for low-carbon travel and has invested heavily in the research and development intensity and carbon emission
of new energy motorcycles. Through continuous technological innovation a series of high-performance 3%-5% per year reductions in the production process
low-emission new energy products have been launched to meet market demand for green travel and in the production area including
clean energy equipment creating new growth drivers for the Company. In addition the Company makes reduce the carbon intensity of further improvements in energy use.full use of its technological advantages in the manufacturing industry strengthens cooperation with Scope 3 by 5%
scientific research institutions and universities and carries out research and development projects on
low-carbon technologies. In the production process the Company promotes the application of energy-
saving technologies and equipment to improve energy use efficiency and reduce energy consumption The Company plans to reduce the carbon
and carbon emissions. The Company is actively exploring green supply chain management and working intensity of Scope 1 and Scope 2 by 3-5%
closely with suppliers to promote the low-carbon development of the entire supply chain and enhance the per year over the next 1-3 years while
Company's green competitiveness in the industry. setting a target to increase the share of
renewable energy in energy consumption
（3）Integration of climate risk management with overall corporate risk reduce the carbon intensity of Scope 3
management by 5% over 3 years and enhance carbon
reduction in non-production areas such as
The Company has integrated climate risk management objectives into its overall corporate strategic employee commuting and green offices.planning combining them with traditional business development and financial objectives. In formulating
future business expansion plans the management fully assesses the climate risks that may be faced by
different regions and business areas and prioritizes low-carbon and climate-resilient business directions.In addition we expand our risk identification beyond traditional risk identification to include climate-
related physical risks and transformation risks. We use a variety of methods such as systematic scanning
of internal and external environments sorting out the corporate value chain collecting relevant data
and information brainstorming scenario analysis etc. to comprehensively identify climate risks and
traditional risks. Short-term objectives Medium-term Long-term objectives
(1-3 years) objectives (3-5 years) (5-10 years) 31Social Initiatives
I and Innovative Development 03
II
III
IV
V
VI
Human Resources Development
Technology-Empowered Industrial Upgrade Driven by Innovation
Rural Revitalization and Community Outreach
32In LONCIN's pursuit of sustainable
development social responsibility has
I always been one of the core driving forces
II for the enterprise heading forward
III
IV We firmly believe that the growth of an enterprise depends to a certain
extent on the nourishment of society and the success of an enterprise
V should also contribute to the development of society. LONCIN is committed
to building a platform for the growth of employees energizing the prosperity
VI of society and supporting the revitalization of the countryside through
the three dimensions of talent cultivation scientific and technological
innovation and rural empowerment. We cultivate talents with the spirit of
craftsmanship water the countryside with the power of innovation and
strive to find the best balance between corporate development and the
fulfillment of social responsibility contributing LONCIN's efforts to build a
more harmonious and sustainable social ecology.talent cultivation
scientific and
technological
innovation
rural
empowerment
33Human Resources
Development
I 1.Employment and Compliance Management
II
LONCIN has always regarded “fairness and justice” as · LONCIN has always regarded · LONCIN regards Experienced Hire
III LONCIN has always adhered to the core the core principles of corporate culture and management. campus recruitment as a key strategy
concept of being “people-oriented” and is Fairness and justice are not only the basic rights and interests Recruitment as a key driving factor to
IV for the Company's talent reserve and committed to building an open collaborative of employees but also the cornerstone of the sustainable stimulate corporate vitality promote
warm and inclusive organizational ecology. development of the enterprise. LONCIN strictly abides by
long-term development. sustainable development and achieve
V We are well aware that talent is the core the Labor Law of the People's Republic of China the Labor corporate strategic objectives.driving force of enterprise development and Contract Law of the People's Republic of China the Law of the The Company focuses on attracting
VI that the well-being and growth of employees People's Republic of China on the Protection of Minors and other outstanding fresh graduates from
are directly related to the competitiveness laws and regulations and has formulated the management
In 2024 LONCIN onboarded 1516 people
domestic and international universities
and sustainability of the enterprise. Therefore documents involving personnel employment remuneration through experienced hire recruitment. and provides a platform for young talents
LONCIN regards talent cultivation as the and benefits assessment and promotion and separation The Company adheres to the recruitment
cornerstone of enterprise development and is from service such as the Employment Contract Managementto realize their full potential through a concept of “Skil ls-First Hiring: Nocommitted to creating an all-around multi- Practices the Recruitment and Hiring Management Practices series of well-designed recruitment and Degree or Experience Bias” focuses on
level talent growth system. By optimizing career and the Employee Separation Management Practices. The training measures. In 2024 LONCIN the actual ability and potential of talents
development paths providing rich training Company strictly fulfills the national laws and regulations on Campus Recruitment closely focuses and is committed to attracting excellent
resources creating an inclusive innovation remuneration vacations welfare safety and health labor on the 7 major dimensions of software/
insurance etc. and fully guarantees the rights and interests embedded development electrification talents who can work together to solve environment and improving employee care
mechanisms we not only provide employees of employees. In all aspects of recruitment promotion and and controls product design electrical the difficulties and problems encountered
with broad career development space but remuneration the Company strictly follows objective criteria technology process technology business in the process of the Company 's
also provide comprehensive care in work-life eliminates any form of prejudice and discrimination prohibits development and functional support development. Through experienced hire
balance and mental health support. LONCIN the employment of child labor prohibits the recruitment to recruit talents. We successfully recruitment LONCIN can introduceadheres to the concept of being “people- of employees under the age of 16 (including internships) onboarded 85 fresh graduates through diversified professional backgroundsoriented” practices the concept of “talent is prohibits forced or compulsory labor opposes discrimination our 2024 campus recruitment program and rich industry experience for itselfthe primary resource” with practical actions and differential treatment guarantees equal pay for men and
strives to let every employee realize his/ women for work of equal value and follows the limitations of which 23 graduated from graduate
and it can provide employees with
her self-worth in the development of the on working hours etc. to ensure that the employment of s c h o o l a n d 5 0 g r a d u a t e d f r o m ample career growth opportunities and
enterprise so that the enterprise and the employees is standardized. undergraduate school. a perfect training system which leads to
employees can jointly promote each other's the common growth of employees and
growth and progress. In addition the Company provides suitable positions for the enterprise. This open and inclusive
persons with disabilities and military-to-civilian transition recruitment strategy not only injects
personnel such as positions of disciplinary inspection new vitality into the Company but also
enterprise management enterprise publicity inspection provides a platform for employees to
and security to create an inclusive and diversified working
optimizing career development paths environment. During the reporting period the total number of realize their personal values further
employees of the Company was 10529 and the rate of labor consolidating LONCIN's competitiveness
providing rich training resources contract signing and social security coverage were both 100%. in the industry.creating an inclusive innovation environment
the total
number of1 employees 0529
improving employee care mechanisms
social
security
coverage 100%
342.Diverse Composition of the Workforce
I LONCIN boasts a diverse structured highly experienced and dynamic workforce.II As of December 31st 2024 LONCIN had a total of 10529 employees of which
7671 or 73% were male and 2858 or 27% were female.
III
IV There are 2342 employees under the age of 30 accounting for 22% of the total
number of employees who continuously infuse fresh energy into the Company;
V 6361 employees aged 30-50 accounting for 60% who serve as the dual engine
for experience inheritance and technological innovation and a stable backbone of
VI technical experts; 1826 employees aged 50 and above accounting for 17% who
have the "craftsmanship spirit" of traditional techniques and act as a platform for
mentorship-based knowledge transfer to younger employees through the master-
apprentice model.The workforce consists of 5367 production staff accounting for 51%; 565 sales
staff accounting for 5%; 1594 technicians accounting for 15%; 136 financial staff
accounting for 1%; 517 administrative staff accounting for 5%; 385 management
cadres accounting for 4%; and 1965 other staff accounting for 19%.Staff Proportion by Gender Staff Proportion by Category Staff Proportion by Age
sales staff aged 30-50
female
production staff under the age of30
male
other staff aged 50 and above
management cadres
administrative staff
financial staff
technicians
353.Employee Benefits and Safeguards
I
IIIII As a leading company in the motorcycle industry and one of the representative 1）Humanistic Care for Female Employees
IV enterprises of the Chongqing manufacturing
industry LONCIN always puts the well-
V being of all its employees in the first place. LONCIN attaches great importance to the
LONCIN has always taken humanistic protection of the rights and interests and
VI care as an important part of its corporate special needs of women in the workplace.culture and has long been offering timely LONCIN not only adheres to gender equality
care and precise assistance to employees in the recruitment and promotion process
in difficulty and female employees in termsof their lives and physical health. To this but also supports the professional growth Event with the theme of “Women Matchend LONCIN has formulated the Employee of female employees through a variety Men in Every Way”
Welfare Management Measures Regulations of measures fully demonstrates respect
(Guidelines) on the Use of Caring Mothers' and recognition of women's professional
Nooks and other systems and measures. capability and is committed to creating an （1）We recognize the power of women on “Caring Mothers' Nooks”
In accordance with the requirements inclusive and caring work environment. the occasion of International Women's Day
of the Company's system we regularly
organize special care activities to deeply During International Women's Day in 2024 （2）“Caring Mothers' Nooks” have been
understand the actual needs of employees
in difficulty and female employees and the trade union of LONCIN specially planned
set up for pregnant and nursing female
employees
provide them with practical and effective festive activities and distributed gifts to
assistance. Whether it is difficulties in life all female employees to convey warmth
or challenges in work the Company actively through practical actions. The theme of the In order to better care for pregnant and
extends a helping hand to help them tide event “Women Match Men in Every Way” nursing female employees LONCIN has
over difficulties by distributing subsistence
materials providing financial assistance highlights the Company's full affirmation
set up “Caring Mothers' Nooks” to provide
caring for special groups and other ways. of the ability of female employees and
them with a private comfortable and safe
encourages them to show their resilience and place to rest and breastfeed. These nooks
wisdom in the workplace and in life. Whether are equipped with facilities such as sofas
it is the struggle in the professional field or refrigerators sterilizers purifiers electric
the work-life balance LONCIN has always fans etc. and disposable mother and baby
supported female employees in their pursuit products and popular books on women and
babies are also provided to meet the needs
distributing providing of excellence and expressed deep respect
subsistence financial caring for through holiday blessings and benefits.of female employees at special physiological
special groups LONCIN believes that every woman is an stages. Through this initiative LONCIN materials assistance
important force for social progress and will not only provides tangible care for female
continue to create an equal and inclusive employees but also contributes to gender
environment going forward to help them equality in the workplace and women's
shine with their unique brilliance. career development.
36III 2）Summer Cooling Care
III
IV
LONCIN attaches great importance to the working experience and
V
health safeguards of employees in a hot environment.VI
In order to effectively do a good job of preventing heatstroke andcooling in summer LONCIN organized and carried out the “SummerCooling Care” event to send attentive care to the employees who work
in high-temperature environments.附录
During the event LONCIN distributed watermelon cold drinks and
other cooling supplies for front-line employees to reduce the impact
of hot weather on their bodies and ensure that they can maintain a
good working condition in the hot summer and also provided high-
temperature work subsidies.Through the series of initiatives LONCIN not only sent coolness to
the employees but also conveyed the Company's deep concern for
the health of the employees which further enhanced the sense of
belonging and happiness of the employees.
37
EC vo eo nl ti n wg i tC h a tr he e” theme of“ Summer3）Encountering Romance through Youth FellowshipI
II LONCIN is extremely concerned about the marriage and love needs of young
III employees and actively builds a dating platform for single youth. In July 2024the youth dating and networking event with the theme of “Love in Jiulongpo -IV Love Forever” was successfully held at the LONCIN Training Center in Area B.V The event attracted over 100 single young adults from the Jiulongpo District.Through meticulously designed segments like "ice-breaking games" "interactive
VI sessions" and "first choices of love" the event promoted communication among
young people based on their differentiated needs and enabled them to talk about
their ideals and expand their social circle in a relaxed atmosphere. Eventually
nine pairs of young people were formed on the spot and embarked on their
romantic journey amidst cheers from fellow participants marking a heart-
warming conclusion to the event.The scene of the “Love in Jiulongpo - Love Forever” event
Group photo of “VOGE Cup” finals
4）Athletes Sweat It Out
LONCIN attaches great importance to the physical and mental health of
employees and team cohesion development. In the 2024 “VOGE Cup” soccer
tournament the Company fully demonstrated its care and support for the
sports life of its employees by organizing a one-month sports event with
the participation of more than 100 employees. The players demonstrated
teamwork and tenacity fighting for collective glory. Seizing this momentum.The Company also took this opportunity to advocate the integration of passion
and collaboration on the field into daily work encouraging employees to use
sportsmanship as a driving force and strive for annual goals. Through such
activities LONCIN continues to create a positive corporate atmosphere helping
employees achieve a win-win situation in terms of a healthy body and efficient
work and promoting the Company's high-quality development.
384.Employee Rights and Supervision
I
II LONCIN attaches great importance to guaranteeing the rights and interests of employees and provides employees with all-
III around care and support through a perfect human resource management system and a rich welfare system to ensure that every
employee can feel respect and warmth in the enterprise which will help individuals realize their values and the enterprise achieve
IV development.V To effectively guarantee the rights and interests of employees LONCIN has formulated a series of human resource management
VI systems such as Human Resource Management Procedures Attendance and Vacation Management Measures Operational Rules for Salary Management Provisions on Social Insurance and Housing Provident Fund Employee Rewards and Punishments Rules on the
Employee commuter Management of Occupational Health Rules on the Management of Work Clothing and so on in accordance with the Labor Law of the
vehicle
People's Republic of China the Labor Contract Law of the People's Republic of China and other laws and regulations. The above
systems cover a wide range of aspects such as remuneration and benefits labor protection and occupational health and safety
providing solid institutional protection for the legitimate rights and interests of employees.LONCIN is committed to creating a healthy and harmonious working environment for its employees. The Company has a
standard working hour system of 8 hours a day 5 days a week supplemented by a special working hour system. In addition to
the two-day weekend statutory holidays marriage and funeral leave maternity leave and other national statutory holidays the
Company also strictly enforces the annual leave system that is consistent with the national Regulations on Paid Annual Leave for
Employees and the Measures for the Implementation of Paid Annual Leave for Enterprise Employees.LONCIN has established a labor supervision and inspection team consisting of the trade union human resources department
each line management department and relevant personnel to supervise the publicity implementation and enforcement of the
Labor Law and the Labor Contract Law as well as the conclusion fulfillment alteration cancellation and termination of the labor
contract so as to ensure that the rights and interests of the employees are fully guaranteed.LONCIN also provides employees with a wealth of welfare rights and benefits including meal subsidies free commuter
transportation annual free medical checkups and holiday care packages. For employees' marriage childbirth and other life
Staff events the Company gives out gifts as a blessing; if an employee suffers from a major illness or family disaster the Company
canteen will also give condolence payments or condolence gifts according to the actual situation to give employees attentive care.labor occupational remuneration and
benefits protection health and safety
395.Occupational Health and Safety Management
I LONCIN has always placed the occupational health and safety of its employees at the core of its corporate development continuously optimizing the occupational health and safety management system for its
employees and establishing a series of safety management systems such as the Safety Inspection System the Safety Production Goal Management System the Emergency Rescue Plan Management System the
II Safety Education and Training Management System and the Safety Risk Prediction and Early Warning Information Management Measures in accordance with the domestic and international standards such as GB/T
45001-2020 and ISO 45001. The Company guards the health and safety of its employees in all aspects by improving the system strengthening training upgrading facilities strengthening supervision and other
III initiatives. To enhance the safety literacy of its employees the Company organized online traffic safety training and exams covering more than 5200 people in 2024 with a pass rate of 94.4%. By citing historical
IV accident cases and clarifying the control measures of key links from the three dimensions of operators professional technicians and managers the Company has compiled the “Today in History” accident case
warning manual which promotes improvement and serves as a warning. The Company carries out activities such as “Safety Production Month” and “Fire Prevention Month” and organizes diversified activities
V such as safety knowledge competitions accident case studies and emergency drills to create a strong safety culture. These activities not only enhance the safety awareness of the staff but also stimulate the
enthusiasm of all staff to participate in safety management forming a good situation of “Everyone speaks safety everyone practices safety”.VI
1）Provision of Comprehensive Health Checkups and Health 2）Enhancement of Security Management by Creating a Zero-Risk Work 3）Performance of Emergency Drills to Guard the Safety Bottom Line
Management to Protect Employee Health Environment
LONCIN is extremely concerned about the continuous optimization of LONCIN has always been committed to creating a zero-risk workingLONCIN has always adhered to the concept of “No safety issue is too small -environment and making every effort to prevent workplace accidents. With mitigate risks proactively”. To ensure the life safety of its employees LONCIN the occupational health and safety management system and alwaysputs the health and safety of employees the first place. LONCIN the goal of achieving “zero deaths zero serious injuries and zero major fireorganized 32 rapid-response emergency response drills covering variousstrictly complies with national policies by contributing to employees' accidents” we strengthen safety management by identifying assessing and
types of accidents including fire accident limited-space operation accident
basic medical insurance. The Company regularly organizes scheduled controlling health and safety risks in the workplace. Through the formulation
heat stroke accident hazardous chemical leakage accident electrocution
medical checkups for all employees every year establishes perfect of the Safety Target Responsibility Statement safety responsibilities at all
accident mechanical injury accident and high-temperature burns etc. in
2024 representing a year-on-year increase of 113.33%. Through these drills
health records and provides a scientific basis for employees' health levels have been clarified to ensure that safety targets are implemented at all
levels. LONCIN organizes regular safety training covering key areas such as the Company has not only strengthened the safety awareness and emergency management so as to guarantee employees' physical and mental
production safety management occupational health awareness notification response capability of its employees but also further improved the scientific health in all aspects. As of December 31st 2024 LONCIN had 10529
of hazards and hygiene protection in each position and emergency response rigor and practicality of its emergency response plans resulting in an accident employees on record and 100% coverage of employee medical
examinations. procedures to comprehensively enhance employees' safety awareness and
rate of only 0.25 per million working hours for LONCIN in 2024.operational skills.coverage of employee
medical examinations
100%
0 risk
Emergency response drill for heat stroke accident Fire accident emergency response dril
Health Safety training for
Checkups the operation of
CNC machine tools
Drill on production safety accident Emergency response drill for electrocution accident
406.Diversified Training and Career Development Paths
I
II Adhering to the concept of “talent as the core competitiveness” LONCIN is committed
III to providing each employee with an all-round multi-level training system covering
professional skills training management capacity enhancement leadership development
IV and cross-departmental exchanges etc. and has invested RMB 2876400 in training
V funds throughout the year.VI In 2024 415 senior and middle managers of the Company set a good example by actively
participating in various types of training courses which efficiently drove 4540 employees Business English training
to enthusiastically participate in job-corresponding training courses with a total of 20334
hours of training a year-on-year increase of 20.33% and an average per capita training
duration of 2 hours.These trainings comprehensively cover employees at all levels and positions further
stimulate the potential of employees guide the planning of their career development path
create a high-quality talent team and lay a solid foundation for the long-term development
of the enterprise. LONCIN is making in-depth strategic expansions into overseas markets
so it has customized a 10-week business English systematic training for the backbone
team members which effectively improves the English skill level of the backbone team
members provides a strong support for the future work and helps the Company to make a
bigger breakthrough in the overseas market.
2876.40 （thousand）in training funds throughout the year.
Tax training
415 4540employees to enthusiastically participate in
senior and job-corresponding training courses
middle managers
20334 hours of training20.33% a year-on-year increase
41Technology-Empowered IndustrialUpgrade Driven by Innovation LONCIN has always insisted on taking scientific and technological innovation as the engine focuses on the development direction of “electrificationI intelligence network connectivity and eco-friendliness” actively promotes
II industrial synergy cooperation and innovation through continuous
technological innovation and industrial upgrading and has established
III strategic cooperative relationships with several well-known domestic
IV and foreign enterprises and scientific research institutes such as BMW
MV Agusta CIP Group and Baidu to accelerate the commercialization
V and industrial application of technological achievements and inject new
momentum into the development of the industry.VI
Electrification
Intelligence
Connectivity
Ecosystem-Oriented
Development
421.Product Innovation Results and R&D Investment
I
II
2）VOGE RR660S: “Energy Maxed 3）EHOM EP350: “Your ultimate lightIII Superbike Awakened” outdoor companion - where style meets LONCIN has always adhered to the performance”IV development concept of “Technology-focused Innovation-driven for a Better The VOGE RR660S is the flagship sport motorcycle LONCIN has been actively building motorcycleV Life” and regarded R&D investment as launched by LONCIN in 2024 and was the brand's culture through the VOGE brand organizing all As the “Digital Companion” of the EHOM portable
the core driving force to promote the main star product of the year thanks to its outstanding kinds of motorcycle circle activities such as energy storage series the EP350 prioritizes
VI sustainable development of the enterprise. performance and innovative design. The VOGE Gymkhana competitions and track experience days. sleek design and lightweight portability as its
Th rough cont inuous inves tment in RR660S is powered by a high-performance 660cc The VOGE RR660S has captivated motorcycle core competitive edges. The EP350 features
R&D LONCIN has achieved remarkable twin-cylinder engine that delivers strong power while enthusiasts worldwide with its high performance interchangeable long/short straps and multiple
innovation results in various fields such as maintaining excellent fuel economy and environmental and striking design significantly boosting the color options precisely meeting young users’
engines motorcycles all-terrain vehicles performance. The lightweight body design and spread of motorcycle culture and fostering a dual demands for personalization and practicalityand energy storage devices. These optimized aerodynamic styling give the RR660S a stronger rider community. It not only enhances the and redefining the ”light-outdoor” experience
innovations not only provide new ideas and superb handling experience. Whether it's a city street influence of Chinese motorcycle brands in the world of portable energy storage. In particular the
directions for technological advancement or a professional race track it's easy to drive and but also lays the foundation for further expansion of enhanced metal handle design at the top and the
and market expansion in the industry but gives you the ultimate driving pleasure. The VOGE domestic motorcycles in the global market. original design of the “small magic box” with
also improve people's daily lives in many RR660S not only surpasses some of its international a one-stop storage function at the bottom put
ways. counterparts in terms of core performance but also respect for the user experience at the top of the
provides consumers with a high-quality option at a list. The EP350 is equipped with a built-in 299Wh
more affordable price promoting the rise of domestic Li-Iron Phosphate battery that supports 350W
motorcycles in the high-end market. rated output power and can reach 700W peak
1）Innovation Driver: Industry-Research output with SpurFlux upscaling technology. This
Collaboration The VOGE RR660S is equipped with the industry- powerful power reserve can meet the charging
leading “active value-added rescue” JUNYOS 3.0 needs of all types of devices in outdoor camping
rescue system which is based on vehicle hardware 无极 hiking photography and other scenarios. What's LONCIN has always taken technological innovation as perception and AI prediction algorithms and is R more in special environments such as emergency
the core driving force of enterprise development. We capable of quickly obtaining on-site information such R rescue or plateaus EHOM EP350 is able to
know that investment in R&D is the key to maintaining 6as the location of the incident and the speed of the 6 provide power support for oxygen cylinders
competitiveness in the industry. In 2024 LONCIN car at the time of the accident allowing exclusive 24- 0 oxygen supply machines and other equipment to
has 1594 R&D team members of various types and hour customer service personnel to take the initiative S ensure the safety of outdoor activities.accumulated R&D investment of RMB 534.53 million. to call the owner to draw up the best rescue plan. It isRelying on the R&D structure of “Group Technology also equipped with several advanced electronic controlCenter + Division Engineering Research Institute” we systems including a traction control system and
actively engage in deep cooperation with professional ABS anti-lock braking system with a variety of riding
institutions such as R&D institutions and technology modes to choose from so as to protect the user's all-
companies. By integrating the advantageous resources of around riding safety and comfort.all parties we accelerate the research development and EH
application of green technologies such as Straight-Line O
ABS Self-Calibration Technology and Forward Design M
E
of Powertrain Thermal Engine Bolts and Seals. We P
continue to increase our investment in green technology 3
innovation continuously improve the synergistic effect 50
of technology development and promote the green and
low-carbon transformation of the Company.
432.Supply Chain ESG Management 3.Customer Management
and Supplier Empowerment Program and Satisfaction Enhancement Program
I
II LONCIN attaches great importance to the sustainable development of its supply chain integrating
III ESG principles into all aspects of supply chain management to build a green efficient and
In 2024 LONCIN achieved remarkable success in customer management and
transparent supply chain system. By formulating strict supplier access standards establishing a satisfaction. According to the customer satisfaction survey results over 95.71%
IV comprehensive ESG evaluation system and conducting targeted empowerment training LONCIN
of domestic and foreign customers highly recognized LONCIN across five key
promotes continuous improvement of its suppliers in environmental social and governance aspects dimensions: sales personnel performance R&D capabilities service systems product
V thereby contributing to the high-quality development of the entire industrial chain. quality and delivery processes.VI 1）Supply Chain ESG Management In response to isolated cases where customer expectations were not fully met
LONCIN promptly developed improvement plans and implemented optimization
LONCIN firmly believes that building a "green supply chain" is critical to its long-term competitiveness measures. In addressing product complaints LONCIN efficiently analyzed the root
and fulfillment of social responsibility. LONCIN has fully integrated ESG principles into its entire causes and promptly formulated corrective measures ensuring a 100% on-time
lifecycle of procurement management and has formulated relevant systems such as the Procurement complaint resolution rate.Control Procedures Supplier Access and Exit Management Measures Supplier Contract and Management
Manual and Supplier Evaluation Management Measures which explicitly require suppliers to strictly
comply with LONCIN's standards in environmental protection and social responsibility. LONCIN
consistently requires suppliers to conduct operating activities in compliance with laws and regulations
effectively safeguarding employees' legal rights. Suppliers are required to organize regular training
for employees to ensure employees are familiar with and comply with relevant laws and regulations
prohibit the use of child labor and forced labor respect employees' freedom and adhere to principles
of equal employment. Additionally suppliers must provide employees with a safe and healthy working
environment equip necessary medical facilities and prevent harm caused by exposure to hazardous
chemicals. By integrating ESG principles into the entire lifecycle of procurement management
LONCIN not only enhances the sustainability of its supply chain but also contributes to driving green
transformation in the industry and promoting harmonious social development.
2）Supplier Conference
LONCIN deeply recognizes the importance of delivering a "green supply chain". LONCIN plans to hold
a National Supplier Empowerment Conference in 2025 to promote the sustainable development of
the supply chain. Through this conference LONCIN aims to actively promote the joint implementation
of green development principles between suppliers and enterprises popularize fundamental ESG
knowledge and information on sustainable supply chains and provide suppliers with capacity building
and knowledge empowerment. In addition at the end of the year the Company will conduct an
excellent supplier evaluation activity by combining the materials reported by suppliers and will award 95.71%
100 "Green Supplier" partners and other honorary titles to honor supplier partners with outstanding domestic and foreign customers highly recognized
performance in low-carbon development and to jointly promote the green transformation and high-
quality development of the supply chain. Through these initiatives LONCIN not only enhances its
competitiveness in green manufacturing but also sets a benchmark for the sustainable development
of the entire industry. 100%
on-time complaint resolution rate
444.Property Rights Management
III 1）In 2024 LONCIN continued to advance technological 2）LONCIN prioritizes intellectual property protection and has 3) In 2024 LONCIN achieved outstanding results
innovation achieving remarkable results and further established a comprehensive management system to ensure in the generator and engine sectors accomplishing
III consolidating its technological leadership position in the the security and competitiveness of its intellectual property. dual breakthroughs in product upgrades and market
IV industry. expansion through technological innovation and
LONCIN effectively manages various types of intellectual global cooperation.V In 2024 LONCIN was granted 6962 patents including 578 property through a series of systems including Intellectual
domestic and international invention patents demonstrating Property Management Measures Patent Management and Work In the generator sector the RV7000 RV (recreational
VI its strong technological reserves. Newly granted patents in Manual Property Rights Application Process Property Rights Risk vehicle)-specific generator set co-developed with
2024 totaled 217 covering domestic invention patents (58) Search Process and Intellectual Property Reward Management a global industry leader CUMMINS successfully
utility model patents (73) and design patents (80 domestic Measures integrated with LONCIN's OA system. The Legal completed prototype testing and received customer
and 6 international) continuously releasing its innovative Department of LONCIN successfully organized 10 specialized approval. It is expected to be officially launched
vitality. Currently LONCIN holds 1591 valid patents both training sessions in 2024 to enhance the awareness of relevant in the first quarter of 2025. In the engine sector
domestically (1576) and internationally (15) including 350 departments regarding intellectual property and facilitate LONCIN successfully developed multiple commercial
invention patents (347 domestic and 3 international) 664 efficient intellectual property work. The training covered key vertical-axis engines among which the CV170-
utility model patents (663 domestic and 1 international) and areas such as patent disclosure writing patent infringement 2 has completed the project application in STIHL
577 design patents (566 domestic and 11 international). interpretation and intellectual property risks in cross-border the third-largest customer in Europe laying a
e-commerce. solid foundation for LONCIN to further expand its
This forms a three-dimensional patent protection network commercial engine market and enlarge its market
primarily focused on domestic coverage while extending Through systematic training LONCIN aims to strengthen the share.to key global markets providing core support for product professional capabilities of various departments in intellectual
competitiveness enhancement and international strategy property management and application providing solid support
advancement. for the Company's technological innovation and market
expansion.domestic and
international invention
patents
45Rural Revitalization and Community
Outreach
I
II
III
IV
V
VI While promoting high-quality development LONCIN
actively engages in rural revitalization and community
integration practices and is committed to achieving long-
term collaborative development between the enterprise
and society. LONCIN actively responded to the national
rural revitalization strategy combined with its industrial
advantages and through multi-dimensional measures
including targeted procurement of agricultural products
and establishment of intelligent counters for poverty
alleviation through consumption it helped rural economic
development and environmental improvement contributed
to the integrated development of urban and rural areas
and the modernization of community governance
demonstrating the Company's commitment and role in the
fulfillment of its social responsibility.
461.Sustained Investment in Social Welfare Programs
I
II
III As a corporation with a strong sense of social responsibility LONCIN Going forward LONCIN will continue to uphold the concept of "serving the country through industrial development
continues to uphold its corporate mission of "Serving through Industrial and assuming social responsibility" actively participate in more public welfare programs practice corporate social IV responsibility with practical actions and contribute more to the sustainable development of society.Development and Assuming Social Responsibility" actively fulfilling its
V role as a corporate citizen through practical actions that benefit society
and support vulnerable groups.VI
In 2024 LONCIN actively participated in the "Caring for Disabilities
Sharing Sincere Companionship" public welfare fund-raising activity
organized by the Chongqing Welfare Foundation for the Physically and
Mentally Challenged demonstrating the Company's compassion and
sense of responsibility.LONCIN deeply understands that public welfare is not only an effective
way to address social issues but also an important means for a
corporation to undertake social responsibility and project positive energy.By participating in this public welfare fund-raising activity the Company
has not only provided practical help to families of the disabled but also
further enhanced the sense of social responsibility and cohesion of its
employees. At the same time LONCIN also actively responded to the
initiative of the activity encouraging employees to participate in the
sympathy activities to transfer warmth through practical actions and Certificate of Honor
to create a sound atmosphere for assisting persons with disabilities to for Supporting Persons
integrate better into society. with Disabilities 2024
In addition LONCIN supports public welfare through various means
including but not limited to providing employment opportunities for
persons with disabilities participating in community welfare services and
supporting education. LONCIN firmly believes that a corporation's value
is not only reflected in its economic benefits but also its contribution to
society and support for vulnerable groups. Through sustained investment
in public welfare LONCIN hopes to inspire more enterprises and social
forces to engage in public welfare collectively contributing to the creation
of a more harmonious and inclusive society.Provide Employment Opportunities
Community Public Welfare Services
Support for Education and Industry
472.Rural Industry Support with Additional Channels
I
II
III
LONCIN actively responds to the national rural revitalization
IV strategy by setting up poverty alleviation counters to help increase
farmers' income and promote rural revitalization.V
VI The Company has strategically deployed poverty alleviation
counters in areas with dense populations and high consumption
frequencies such as corporate canteens and employee living areas.Each counter is equipped with an intelligent temperature control
system that precisely regulates the temperature ensuring
agricultural products are maintained at optimal freshness
conditions maximizing their quality and preservation state.Additionally the counters thoughtfully display product origin
information enabling employees to learn about the rural stories
behind the products while shopping thereby strengthening the
emotional connection associated with consumption-based support.This initiative not only provides employees with convenient
shopping channels to satisfy their demand for healthy and green
agricultural products but also broadens the distribution channels of
agricultural products in rural areas promotes the development of
the agricultural industry and provides tangible support for farmers
to increase their income. It serves as a vivid example of LONCIN
empowering rural revitalization.intelligent poverty display
temperature alleviation product origin
control
system counters information
48
Operating and Setting up Agreements for Intelligent Counters
for Poverty Alleviation through Consumption04 Compliance and I Transparent Governance
II
III
IV
V
VI
Reinforcement of Compliance and Corporate Governance Structure
Transparent Dialogue Targeting Specific Stakeholder Groups
49Reinforcement of Compliance and
Corporate Governance Structure
I
II
1.Promotion of the Leadership of Party Building
III
IV
V LONCIN maintains its original commitment to following
the Party's guidance thoroughly comprehending the （1）Organizing party lectures by the Party Branch Secretary
VI guiding principles of the 20th National Congress and Learning Activities:
fully implementing Xi Jinping Thought on Socialism Through the initiative of the Secretary delivering Party Party Lessons
with Chinese Characteristics for a New Era be self- lessons Party members’ awareness of integrity self- by Party Branch Secretaries
confident and self-improvement. In 2024 LONCIN's discipline and their sense of mission have been enhanced.Party-building work focused on its development goals To thoroughly study and implement General Secretary Xi
guiding Party members to play an exemplary vanguard Jinping’s important speeches and instructions on Party
in technological innovation market expansion and discipline study and education and to accurately grasp
brand building. the objectives and key tasks of this education the activity
has effectively enhanced the integrity and self-discipline
of all Party members in the branch thereby building a
robust ideological defense against corruption. In 2024 the
1）Structure of the Party Organization general Party branch committees initiated and launched the
activity of Party lessons by secretaries and the secretaries
There are five Party branch committees under the general of the general Party branch committees and each Party
Party branch committees of LONCIN. There are 219 branch delivered Party lessons to Party members 16 times
serving Party members with an average age of 38. Of delivering the latest theories lines principles and policies
these 75.23% have a bachelor's degree or above. This of the Party to CPC Party members. Through this activity
high-quality youthful Party member team provides a it has effectively enhanced the awareness of integrity and
solid foundation for the high-quality advancement of the self-discipline of Party members built a firm ideological
Company's Party-building work. line of defense against corruption guided Party members to establish a correct worldview outlook on life and values
further enhanced the sense of mission and responsibility of
2）Party History Education on a Regular On-going Basis Party members and provided a solid ideological safeguard and disciplinary support for the promotion of high-quality
The general Party branch committees of LONCIN have development of the corporate. Learning Activities: Party Lessons
established a mechanism for the normalization and by Party Branch Secretaries
long-term institutionalization of Party history study
and education guiding Party organizations at all levels
to thoroughly study the lines principles policies
fundamental theories and basic knowledge of the Party.Through this mechanism all Party members have engaged
in an in-depth study of Party history continuously
strengthening their Party spirit cultivation and stimulating
work enthusiasm. The achievements in the Party history
study are effectively transformed into a strong driving
force for the Company's development injecting sustained
vitality into the high-quality development of the Company.
50（2）Strengthening and standardizing the "Three Meetings and One
I Lecture" system
II
III Leveraging the "Three Meetings and One Lecture" system as a key tool to advance the
in-depth and practical study of Party history. By conscientiously implementing the "Three
IV Meetings and One Lecture" system the general Party branch committees actively convey
the line principles policies and important deployment of the Party organization at the
V next level up guides the Party branches to carry out study and work and constantly
strengthens the education and management of Party members consolidates the
VI foundation of Party building and improves the quality of Party building through the forms
of general meetings Party branch committees Party group meetings and party lessons.In April 2024 the general Party branch committees organized and led all Party branches
in conducting Party discipline study and education further strengthening the sense of
discipline and guiding Party officials to enhance self-restraint while consciously adhering
to the Party's discipline and regulations. This activity has provided robust political and Party Discipline Study and Education Party Discipline Study and Education Party Discipline Study and Education
Activity in April 2024 Activity in April 2024 Activity in April 2024
disciplinary support for the Company to be a vanguard of the Scientific Outlook on
Development in practice.结篇
（3）Conducting distinctive Party-building activities aligned with corporate strategy
Conduct distinctive party-building activities that align with corporate strategy to enhance the cohesion and fighting spirit
of Party organizations. To celebrate the 103rd anniversary of the founding of the Communist Party of China (CPC) review
its glorious history and honor its monumental achievements the Party General Branch carried out a series of themed
activities titled "Carry forward the Revolutionary Traditions and Heritage" in 2024 to further enhance the cohesion and
fighting spirit of Party organizations. The specific activities are as follows:
In January the general Party branch committees of LONCIN held the "2024 LONCIN New Youth Forum" event. Outstanding
youth representatives from different positions served as lecturers sharing career experiences and life insights with
nearly 200 young core employees and new graduate recruits. The activity inspired young employees to strengthen their
commitment to serving the country through science master professional skills embrace innovation integrate theoretical
knowledge with practical work continuously promote technological innovation and achievement transformation and Visit Chongqing Jianchuan Museum
contribute to the Company's high-quality development. to Commemorate the Outstanding Merits of
2024 LONCIN New Youth Forum 2024 LONCIN New Youth Forum Revolutionary Martyrs in May 2024
In May members of the Party committee members of the general Party branch committees secretaries of Party branches
and selected Party member representatives visited the Chongqing Jianchuan Museum to commemorate the outstanding
merits of revolutionary martyrs and deeply felt the fighting spirit self-sacrifice hard work and relentless progress of the
revolutionary predecessors. The activity inspired every Party member to strengthen their commitment to communist ideals
and service to the people while enhancing their political responsibility and historical mission.In June the general Party branch committees organized care visits for Party members facing hardships on the eve of July
1st delivering the warmth and care of the Party. These efforts ensured that members in need genuinely felt the support
and solidarity of the Party organization thereby consolidating the collective drive for progress.The Company held the July 1st Review and Awards Ceremony and "My Story with LONCIN" Speech Contest in July. At
the ceremony "Outstanding Party Members" and "Exemplary Party Workers" from each Party branch were honoured
and three representatives of Party members delivered speeches on the stage sharing their stories of growing up in the July 1st Review and Awards Ceremony and "My July 1st Review and Awards Ceremony and "My seminar
Company and their experiences and insights of growing up with the Company demonstrating the exemplary and vanguard Story with LONCIN" Speech Contest Story with LONCIN" Speech Contest
roles of the Party members in the development of the Company. 51I
II
III （4）The general Party branch committees trade union and mass organization synergistically promote the sustained healthy and rapid enterprise development
IV
To enhance the attractiveness cohesion operational capacity and outreach of
V the general Party branch committees and mass organizations while invigorating
employees’ entrepreneurial passion and vitality the Company continues to
VI strengthen the mass organization with the general Party branch committees as
the core and to promote the Company’s sustained and healthy development.To effectively popularize the prevention of telecommunication fraud knowledge
further enhance the preventive awareness and fraud identification ability of
all employees and effectively curb the infiltration of telecommunication fraud
Anti-fraud Publicity and Training and other illegal and criminal activities to the Company to maintain the safety
and stability of the Company on April 26th 2024 the Company's general Party
branch committees in coordination with the trade union and together with the
People's Government of Bafu Township and Bafu Township Police Station held
an anti-fraud publicity and training activity.Through this training employees have a deep understanding of the harm of
telecommunication fraud mastered the practical skills of prevention their
awareness and ability to prevent fraud has been significantly improved. To
facilitate both "educational qualification" and "professional competency"
enhancement of industrial workers the grand opening ceremony of the
"LONCIN Class" for the educational qualification improvement of industrial
workers in autumn which was meticulously planned and prepared jointly by the
Human Resources Department the trade union and the general Party branch
committees of the Company was held on October 31st 2024.The successful opening of the "LONCIN Class" has built a broad learning
and growth platform for industrial workers allowing them to enhance their
professional skills and comprehensive quality while upgrading their educational
qualifications truly achieving the goal of "gaining both knowledge and
diplomas simultaneously". This not only injects strong talent power for the
Company’s high-quality development but also builds solid talent support
for the construction of new socialist Chongqing and the “33618” modern
manufacturing cluster system demonstrating the Company’s active role in
talent cultivation and social responsibility.Opening Ceremony of the "LONCIN Class" for Educational Qualification Improvement
522.Board ESG Oversight Mechanism and Governance Structure Improvement
III 1）ESG Governance
III
IV With increasing global attention to sustainable development ESG has become an important standard for measuring an enterprise's ability to develop sustainably.The Company actively responds to the national "Carbon Peaking and Carbon Neutrality" policy and meets the sustainability demands of both domestic and
V international markets.VI The Company has established an ESG Management Leadership Group the highest decision-making body for ESG management led by the Chairman. The main
responsibilities of the Leadership Group include the comprehensive review decision-making and supervision of major ESG matters including the Company's
ESG governance structure and systems ESG strategy ESG risks ESG reports ESG plans climate change risk impacts and response measures. Under the
Leadership Group a working group has been set up to implement specific tasks. Under the Leadership Group a working group has been set up to implement
specific tasks. The working group comprises the following departments: Operations Management Center Strategic Management Center Securities Affairs Center
Financial Management Center Organization and Human Resources Center Digitalization Center Manufacturing Technology Center Technology Center Party and
Community Affairs Center Risk Management Center and General Manager Office.. The Securities Affairs Center is responsible for coordinating the Company's
ESG-related work which includes establishing the governance structure preparing reports planning activities organizing training identifying and enhancing ESG
topics and reporting the work progress to the Leadership Group. The management platform designates ESG liaisons to cooperate implement management plans
coordinate stakeholders systematically manage topics collect and report information and actively participate in training.In 2024 the Company actively implemented ESG measures to ensure that its environmental social and corporate governance objectives were met. The specific
measures are as follows:
Practicing green manufacturing and leading industry standards. In terms of environmental management the Company was awarded the title of "National Green
Factory" in 2024. This honor not only represents high recognition of the Company's long-term efforts in green manufacturing but also highlights its leading
position in promoting sustainable development within the industry.With win-win as the core to promote the common development of the brand and employees. In terms of social responsibility the Company actively advanced its
global brand strategy in 2024 continuously enhancing brand value and channel quality. With its outstanding performance in the consumer sector the Company
was awarded the title of "The Listed Company with the Most Growth in Large Consumption" in the 14th China Listed Company Reputation Ranking demonstrating
its robust market competitiveness and positive reputation.Optimizing structure and strengthening internal controls and risk management. In terms of corporate governance the Company successfully completed the re-
election of its fifth Board of Directors on August 29th 2024 injecting new vitality into its steady development. By optimizing the structure of the Board of
Directors the Company can better formulate strategic plans and improve decision-making efficiency while also strengthening internal control and risk management
to ensure the compliance and soundness of its operations.Enhancing transparency and boosting investor confidence. In terms of information disclosure and communication the Company maintained close interaction and
communication with investors through various channels ensuring that investors could promptly and comprehensively understand the Company's value and strategic
direction. In 2024 the Company proactively prepared and disclosed the Environmental Social and Governance (ESG) Report 2023 conveying its firm commitment
and practical actions in sustainable development through high-quality information disclosure.
53Board of Directors1 0 Information Table
2）Governance Structure
（1）Optimizing governance organizational structure Name Gender Year of birth Position Political affiliation Educational Professional Committee I qualification Appointments
Chairman of the Strategy
Master of
II Chairman Common citizen and Investment Committee
To ensure the achievement of the According to the Articles of Association
Li Yao Male 1964
of LONCIN the general Management Member of the Nomination
Committee
III Company's sustainable development meeting is the highest authority of the Company and exercises Gong
goals the Company strictly adheres to its powers in accordance with the law. The Company's Board Male 1970 Director Common citizen Master of Business Member of the Strategy and Hui Administration Investment Committee
IV relevant laws and regulations including of Directors has established the Strategy and Investment
the Company Law of the People 's Committee Audit and Risk Control Committee Nomination Member of the Remuneration
V Republic of China the Securities Law Committee Remuneration and Appraisal Committee Budget Hu and Appraisal Committee
of the People's Republic of China and Management Committee and Related Transaction Committee. Member of the Budget Xian Male 1972 Director Common citizen Master of Management Committee
VI the Constitution of the Communist Party yuan Engineering Member of the Strategy and
of China as well as the listing rules Investment CommitteeOn August 29th 2024 the Company held its first extraordinary
and the requirements of securities general meeting of 2024 successfully completing the re-
and futures management regulations Member of the Related election of the Board of Directors and the Supervisory Huang Master of Transactions Committee
of the Shanghai Stock Exchange to Board. The meeting considered and passed the Proposal Director Common citizenPeiguo Male 1976 Economics Member of the Strategy and
for Re-election of the Board of Directors and Election of Non- Investment Committeestandardize corporate governance
and management practices. Relying independent Directors for the Fifth Session of the Board of
Member of the Related
on the governance structure of the Directors Proposal for Re-election of the Board of Directors and
General Meeting and the Board of Election of Independent Directors for the Fifth Session of the
Jiao Director CPC Party Member Master of Science Transactions Committee Male 1986
Yiyang Member of the Strategy and
D i rectors the Company steadi ly Board of Directors and Proposal for Re-election of the Supervisory Investment Committee
promotes standardized operations. On Board and Election of Non-employee Supervisors completing the re-election of the Board of Directors and the Supervisory
this basis the Company continuously Master of Member of the Strategy and Committee electing the members of the Fifth Session of Liu Male 1988 Director Common citizen Engineering Science Investment Committee
improves its internal management Zhaothe Board of Directors and the Supervisory Committee and
systems and processes refines the identifying the members of the various specialized committees. Chairman of the Related
Articles of Association and strengthens As of December 31st 2024 the Board of Directors of LONCIN Transactions Committee
compliance operations. These measures comprises 9 directors including 3 independent directors Chairman of the Remuneration and Assessment Committee
effectively elevate the level of corporate (33.33%). The age of members of the Board of Directors Yang Male 1965 Independent CPC Party Member Member of the Audit and Risk Master of Laws Control Committee Member of
governance and enable the Company to ranges from 30 to 60 years old forming a tiered structure of Zeyan Director Nomination Committee Member
address the various risks and challenges senior middle-aged and young members. Over 80% of the of the Budget Management
encountered during its operations directors hold postgraduate degrees or higher with diverse
Committee Member of the
Strategy and Investment
professional backgrounds covering multiple fields such as Committee
and business development thereby finance law and management enabling the Company to
providing a solid guarantee for the receive comprehensive and professional guidance effectively Chairman of the Audit and
Company's healthy and stable growth. enhancing corporate governance levels and providing solid Risk Control Committee
intellectual support and decision-making assurance for the Chairman of the Budget Management Committee
Company's healthy and stable development. Chen Master of Male 1971 Independent Common citizen Member of the Strategy
Dingwen AccountancyDirector and Investment Committee
Member of the Related
Transactions Committee
Member of the Remuneration
and Assessment Committee
Chairman of the Nomination
Committee Member of
Strategy and Investment
Liu Doctor of Male 1979 Independent CPC Party Member Committee Member of
Jianxin ManagementDirector the Related Transactions
Committee Member of
the Audit and Risk Control
30-60 Committee
10 The committees under the Board of Directors of the Company have been adjusted and newly established in accordance with the changes in functions. On the one hand the
former Strategy Committee and Audit Committee have been adjusted to become the Strategy and Investment Committee and the Audit and Risk Control Committee; on the other
hand the Budget Management Committee and the Related Transactions Committee have been newly established.After the newly established and adjusted committees under the Board of Directors of the Company the main composition includes the Strategy and Investment Committee Audit 54
and Risk Control Committee Budget Management Committee Related Transaction Committee Nomination Committee and Remuneration and Appraisal Committee.（2）Increasing synergy of Three Corporate Governance Bodies
I In 2024 the efficient operation of the "Three Corporate
II Governance Bodies" mechanism i.e. the synergy of the Board
of Directors Board of Supervisors and General Meeting of
III Shareholders was the guarantee for the scientific and legitimate
decision-making of the Company. In selecting and recruiting
IV directors supervisors and executives the Company prioritized
professional competence and a sense of responsibility ensuring
V leadership stability and steady operations. In terms of remuneration
management of directors supervisors and senior management
VI the Company has established a scientific and reasonable
incentive mechanism closely linking the remuneration of senior
management with the overall performance of the Company to fully
motivate them to invest more energy and wisdom in the long-term
development of the Company and to realize the co-development
of individuals and the Company.In 2024 the Company held 4 General Meetings 5 Board of
Directors meetings 1 Strategy Committee meeting 5 Audit
Committee meetings 2 Nomination Committee meetings 1
Remuneration and Appraisal Committee meeting 3 Independent
Directors' special meetings and 4 Board of Supervisors
meetings. The attendance rate of the Board of Directors various
special committees and the Board of Supervisors was 100%
ensuring timely and effective decision-making of the Company
and providing strong support for the Company's high-quality
development.
100% To strengthen the Company's headquarters management functions and align with strategic development needs
and internal control requirements the subordinate committees of the Board of Directors and the original
attendance rate organizational management structure underwent adjustments and additions in February 2025 based on
functional changes and strategic development needs. The committees were reorganized from the original four:
Strategy Committee Audit Committee Nomination Committee and Remuneration and Appraisal Committee
the Board of into six committees.Directors
Additionally the Company restructured its departments to comprise ten Centers and one Office specifically:
Operations Management Center Strategic Management Center Securities Affairs Center Financial
Management Center Organization and Human Resources Center Digitalization Center Manufacturing
Technology Center Party and Community Affairs Center Risk Management Center and General Manager
Office. Various functions have been split supplemented and optimized in this process.the Board of General
Supervisors Meetings
553.Anti-corruption Compliance System and Data Security Protection
I
II
III In active response to the call of the CPC Central Committeeand the State Council to "Build Law-based and Integrity- 1）Enhancement of the Integrity System 2）Establishment of Smooth Whistleblowing Channels
IV driven Private Enterprises" the Company upholds a high level of
political consciousness and commitment to responsibility. It has The Company has established a standardized and transparent integrity system Accessible tip-off channels are a crucial tool for corporates to
V comprehensively carried out initiatives to construct an integrity that forms the foundation for sustainable development. In November 2024 strengthen internal management prevent risks and enhance private enterprise system and foster an integrity culture aiming the Company revised and improved its Integrity Management System which compliance. To ensure that the tip-off channels operate
VI to regulate the integrity in the professional conduct of leaders clearly outlines detailed anti-corruption requirements for employees and efficiently the Company has formulated and implemented the
at all levels and employees. These efforts effectively safeguard business partners such as suppliers and strictly prohibits any form of bribery Company Complaint and Wistleblowing Mailboxes Management
the Company's interests and ensure its healthy and sustainable thereby establishing a robust institutional defense line for integrity. The Human Measures and has actively built a diversified tip-off platform
development. Resources and Corporate Management Department of the Company has set set up a complaint and tip-off mailboxes and publicized them
up a file on integrity employment regarding their integrity performance as on the official website and the internal office platform and
an important basis and component for performance evaluation appointment widely accepted the tip-offs and complaints of the Company's
and promotion. This initiative not only reinforces supervision mechanisms employees and outsiders on the Company's employees'
for integrity and self-discipline but also motivates employees to consciously violation of the integrity of the behavior. The Company
comply with integrity regulations preventing violations and disciplinary solemnly commits to keeping the personal information of
incidents from their roots and ensuring that they abide by the law and maintain reporters and complainants strictly confidential ensuring their
self-awareness. legal rights are protected and eliminating any concerns about
retaliation.In 2024 leaders in charge of various business departments at the Company's
headquarters general managers of each entity and leaders in charge of If any behavior that violates the Company’s compliance
procurement and quality at each entity signed the Integrity Commitment relevant laws and regulations or other stipulations is identified
Letter. They solemnly pledged to abide strictly by national laws regulations tip-offs can be submitted either with full identification or
and the Company's rules and regulations resolutely resist commercial anonymously through the following channels:
bribery refrain from seeking improper benefits through their positions and Email: tousu@loncinindustries.com
effectively safeguard the Company's interests. This action highlights the
determination of the Company's leadership to be integrity and disciplined
and sets an example for all employees. To enhance the influence of the
integrity culture the Company has arranged publicity boards in prominent
positions such as the employee cafeteria publicized the institutional setup
of integrity private enterprises integrity management system tip-off and
The Company Invited the People's Procuratorate of Jiulongpo District to Conduct a Legal complaint channels compliance management common types of job-related
Awareness Campaign on "Safeguarding Businesses and Protecting Enterprises." crimes and the consequences of violation of the law and so on. Through
such vivid and visualized publicity the Company has successfully fostered a
strong atmosphere of integrity culture and the publicity effect is equivalent to
providing systematic integrity training to over 1000 employees.
1000+ In July 2024 the Company invited the People's Procuratorate of Jiulongpo District to conduct a legal awareness campaign on "Safeguarding Businesses
equivalent to providing systematic integrity training to
over 1000 employees. and Protecting Enterprises." Through analysis of actual cases the campaign
highlighted how common legal violations harm corporate interests prompting
the corporation to strengthen its institutional system further eliminate
management vulnerabilities and prevent corruption. This campaign not only
enhances the employees' legal awareness but also creates a clean and positive
business environment for the Company.
564.Risk Management and Internal Control
First Line of Defense: Business Department Defense Line
I
1）Comprehensive Risk Prevention and Control The defense line of business departments is mainly composed of the Company's business II departments or subordinate entities which are responsible for the daily operation and
In a complex and ever-changing global management of front-end departments. As the primary risk responders and main parties
III economy factors such as the uncertainty of
（1）Risk management structure responsible these departments autonomously identify major risks in their business processes Sino-U.S. trade relations an uneven global and design corresponding risk response measures. By integrating with the Company’s
IV economic recovery geopolitical conflicts operations and risk management work these departments establish and maintain appropriate
exchange rate fluctuations and rising raw The Audit Committee is the highest deliberative and decision-making structures and processes to ensure that all business activities comply with legal regulatory
V material costs due to global inflation may body for risk management with the Office of the Board of Directors and ethical requirements. These departments achieve closed-loop risk management through
pose potential threats to the Company’s assisting in its related work. In September 2024 the Company optimized risk identification assessment and implementation of response measures.VI export business and market confidence. In its risk management structure and officially established the Risk Control
facing these internal and external challenges Department. As the daily operational body set up by the Audit Committee
the construction of the Company's risk the Risk Control Department is primarily responsible for internal auditing Second Line of Defense: Internal Supervision and Monitoring Defense
management system and internal control and risk control within the Company. According to the annual audit plan
is fundamental and crucial to dealing with approved by the Audit Committee the department conducts various
internal and external risks and safeguarding The internal supervision and monitoring defense line is mainly composed of the Company's routine operational audits special audits exit audits closed-loop
its stable and robust operation. In compliance finance quality legal safety risk control and other related departments which provide supervision of audit issue rectifications and supervision of risk control
with relevant laws and regulations the professional knowledge support and supervision for the matters related to risk management over critical business processes. In addition the department reviews and
Company continuously strengthens its of the first line of defense put forward reasonable suggestions and are responsible for evaluates the appropriateness and effectiveness of the Company's business
r isk control measures and ref ines i ts planning and supervising the risk management work and improving the risk management activities internal controls and risk management to promote improved
internal control management systems and governance add value and achieve goals. The Risk Control Department system in combination with the corresponding business processes.frameworks. Through systematic mechanisms reports annually to the Audit Committee on the management of significant
for risk identification assessment and risks and the operational effectiveness of the risk management system
response the Company enhances its strategic and is subject to the Audit Committee's review and supervision. Third Line of Defense: Internal Audit Defense Line
resilience in a complex and volatile market
environment thereby promoting sustained In the same year the Company renamed the Intellectual Property The Audit Committee and the Audit Department of the Board of Directors have established
and stable growth. Department and adjusted it to the Legal Department further integrating the third line of defense for risk management and control. The Audit Department regularly
legal resources and ensuring professional and systematic legal work. audits various businesses of the Company to provide independent evaluation and assurance
on the risk points existing in relevant businesses and the effectiveness of internal control.In 2025 the Company will further optimize its risk management structure Additionally the Audit Department continuously monitors and manages the identified risks further optimize its risk by restructuring the Audit Committee into the Audit and Risk Control and tracks and supervises the improvement and enhancement of internal control by the
management structure Committee and formulating and issuing the Work Regulations of the Audit management of the Company. Moreover the Audit Department reports quarterly to the Audit
and Risk Control Committee of the Board of Directors. Under the Audit Committee of the Board of Directors to ensure the independence of audit work. The internal
Three Lines of Defense in Risk and Risk Control Committee the Audit Department will be established
audit defense line provides independent and objective confirmation and consultation for
and tasked with internal auditing and risk control. Additionally the Risk the accuracy and effectiveness of corporate governance and risk management driving the
Management Management Center will be established comprising the Legal Affairs improvement of the risk management system.Department and the Supervision Department which will primarily handle
legal affairs and supervision management.Based on the Risk Classification Framework and risk assessment standards the Company
（2） “Three Lines of Defense” in Risk Management regularly conducts internal and external risk identification in six areas: strategic risk market risk operational risk financial risk legal risk and social responsibility risk. The Company
The Company places great emphasis on building its risk management develops differentiated response strategies for risks of varying categories and impact levels
system. Under the leadership of the Board of Directors it has established and continuously improves risk management processes based on assessment results toa risk management organizational structure consisting of “three lines achieve closed-loop risk governance. The Company integrates ESG risk control measuresof defense” namely the business department defense line the internal into its internal control and risk management system optimizing and consolidating risk
supervision and monitoring defense line and the internal audit defense review and resource allocation and strengthening its risk response and control capabilities
line clearly defining the levels and division of responsibilities for risk in the field of sustainable development.management.
572）Internal ControlI 1）Continuously enhancing the internal control system 2）Setting great store by internal audit
II The Company attaches great importance to its internal The Company attaches great importance to the implementation The Company has formulated a scientific internal control
control. In strict adherence to the Company Law of and management of internal audits. According to the Audit Law evaluation mechanism which includes self-evaluation by
III the People’s Republic of China the Basic Norms for of the People's Republic of China the Regulations of the Audit Office headquarters departments self-evaluation by affiliated
Enterprise Internal Control and its supporting guidelines on Internal Audit Work the Basic Standards on Internal Audit and its entities annual inspection evaluations and special inspection
IV as well as the internal control supervision requirements specific guidelines the Basic Norms for Enterprise Internal Control evaluations to comprehensively and systematically assess
of the China Securities Regulatory Commission the and its supporting guidelines and other relevant national laws the effectiveness of internal controls. For identified issues
V Shenzhen Stock Exchange and other relevant bodies and regulations the Company has established the Internal Audit the Company promptly proposes improvement suggestions
the Company has established a comprehensive internal System. The Company clearly defines the Risk Control Department and measures to drive continuous optimization of the
VI control system tailored to its unique circumstances as the main responsible department of internal audit giving it the internal control system. At the same time the Company
characteristics and management needs which is functional role of independently exercising audit authority. According has engaged an annual accounting firm to conduct an
continuously refined and enhanced. During the reporting to the annual audit plan approved by the Audit Committee the independent audit of the internal control and issue a self-
period the Company further strengthened its system Company conducts various routine operational audits special audits assessment and external audit report to further enhance
development continually optimized management and exit audits. Through closed-loop supervision of audit issue the internal control level of the Company with the help of
systems such as the Internal Audit System enhanced rectifications and supervision of risk control over critical business external professional forces and build a solid foundation for
internal control processes across various stages processes the Company reviews and evaluates the appropriateness the sound development of the Company.and improved the internal control process manual. and effectiveness of its business activities internal controls and
Additionally the Company integrates aspects such risk management to promote improved governance add value and
as corporate internal control risk prevention division achieve goals. The Audit Department reports its work to the Audit
of responsibilities and authorities and task allocation and Risk Control Committee annually which guides supervises and
into the internal control process descriptions thereby evaluates the internal audit work. 5.Tax Transparency
promoting the effective operation of the internal control
system. In terms of internal monitoring the Company has established a
dual-track model that combines daily monitoring with special
monitoring to ensure comprehensive multi-layered risk control.Daily monitoring covers management-level supervision and entity-
Implementation and Management The Company consistently upholds a strong sense level supervision which involve reviewing risk analysis reports and of responsibility and the principle of transparency
holding special meetings to monitor daily operations and promptly
Dual-Track Monitoring Model by fully and promptly disclosing tax-related identify and resolve potential issues. Special monitoring focuses on
the Company's development strategy and major projects conducting information to the public through various channels
Internal and External Training Mechanism targeted inspections to ensure effective identification and control of including regular reports equity distribution
risks in core business areas thereby safeguarding the achievement of announcements and major matters disclosure.Scientific Internal Control Evaluation Mechanism strategic objectives. The Company strictly follows the national tax policy to ensure the legality and standardization
Independent Audit The Company attaches great importance to enhancing the of tax treatment. At the same time relying on professionalism of its audit personnel. It has established a the Company's independent financial accounting
comprehensive internal and external training mechanism to ensure system the accuracy and transparency of financial
that the audit personnel can fully master the Company's internal data are guaranteed. Moreover the Company
management system such as its work rules and regulations and work actively maintains close communication with
manuals as well as the latest industry audit standards and methods.In 2024 the Company selected audit personnel to participate in investors promptly addressing market concerns
business skills training organized by the Shanghai National Accounting and further strengthening investors' trust in the
Institute. This training not only provided them with cutting-edge risk Company's tax management.control insights but also significantly improved their professional
proficiency and overall capabilities injecting new vitality into the
Company’s internal audit work.
58Transparent Dialogue Targeting Specific Stakeholder Groups
I
1.ESG Communication and Information Disclosure Mechanism Specific to Investors
II
IIIIV 1）Investor Relations Management
V
To strengthen information communication between the Company and its investors improve
VI corporate governance structure and effectively protect the legal rights and interests of investors
especially those of public investors the Company has formulated the Investor Relations Work
System in accordance with the Company Law of the People’s Republic of China the Securities Law
of the People’s Republic of China the Stock Listing Rules of the Shanghai Stock Exchange the Work
Guidelines for the Investor Relations of Listed Companies and other relevant laws regulations as
well as the provisions of the Articles of Association.The Company attaches great importance to investor relations follows the principles of openness
fairness and impartiality and is committed to building an efficient and transparent investor
relations management system to promote effective communication and interaction between
the Company and investors. For this purpose the Company has established a multi-channel
and multi-level communication system including results announcement the SSE e-interactive
platform Investor Reception Day investor hotlines on-site research online communication
platforms regular reports and other means to ensure that investors can conveniently obtain
information and participate in the communication. In 2024 the Company actively engaged in
investor relations activities. It hosted over 80 investor surveys and reverse roadshows participated
in more than 15 securities firm strategy meetings and conducted nearly 50 reverse roadshows.Additionally the Company organized 3 results announcements and 1 Investor Reception Day. It
responded to over 200 investor inquiries addressed nearly 50 questions on interactive platforms
handled more than 20 investor phone calls and replied to 5 investor emails. The Company not only
promptly addressed market concerns but also further strengthened investors' trust and confidence
in the Company's management.In 2024 the Company actively upheld the concept of protecting the rights and interests of small
and medium-sized investors. It conveyed its commitment to steady operations and sustainable
returns through cash dividends. The Company distributed RMB 821 million in cash dividends
providing investors with continuous stable and reasonable returns effectively safeguarding their
legal rights and interests.
8050150
investor surveys and reverse roadshows reverse roadshows Investor Reception Day addressed questions on interactive
platforms
15 3 200 20handled investor phone calls
securities firm strategy meetings results announcements investor inquiries
5
replied investor emails
592）Information Disclosure Mechanism 3）Strategies for Coping with Extreme Weather
I
The adoption of an information security management system In 2024 the Company conducted information security knowledge
training for all employees and organized 4 information The frequent occurrence of extreme weather events II is a strategic decision by the Company to comprehensively
improve its information security management capabilities ensure security training sessions to deepen employees’ awareness of
has posed numerous challenges to the Company's
III the confidentiality integrity and availability of information and information security. For new employees the Company focuses
supply chain including production disruptions logistical
give stakeholders confidence that risks are being adequately on strengthening the confidentiality regulations and through the
blockages raw material shortages rising costs and
IV managed. The Company's information security principle is full sharing of classic cases of information leakage to help them
dramatic fluctuations in market demand which not only
participation scientific prevention and control to safeguard learn from actual cases enhance their awareness of prevention
increase operational uncertainty but also pose a serious
and build a firm “first line of defense” of information security. test to the Company’s sustainable development. To V information assets and support continuous business operations. effectively mitigate the risks posed by extreme weather
the Company has adopted a series of forward-looking
VI The Company attaches great importance to information security In addition the Company has customized a diverse range of
targeted information security training courses based on the strategies and is committed to improving the resilience management considering it a key factor in guaranteeing business
continuity and data security. In 2024 the Company implemented diversity of positions and responsibilities. The content covers
and robustness of its supply chain.the Information Security Cybersecurity and Privacy Protection practical exercises on cybersecurity defense the introduction of a Firstly the Company has implemented a diversified
— Information Security Management Systems — Requirements data security baseline knowledge sharing on data cross-border procurement strategy to reduce its reliance on a single
(ISO/IEC 27001:2022) and TISAX VDA ISA 6.0 standards and the identification and sorting out of important information assets supplier by establishing long-term relationships with
comprehensively carried out the construction of the information and the systematic construction of data security. Through precise
training the Company comprehensively enhances employees' suppliers of different regions and sizes and to ensure that security management system. By establishing implementing
risk management and control capabilities and builds a more solid it can quickly switch to a backup supplier in the event of and continuously improving the documented information
information security defense line. supply disruption caused by extreme weather. security management system the Company has formulated
the Information Security Management Manual which provides Secondly the Company makes use of advanced
programmatic guidance for information security management. With regard to the operation and maintenance of the information
system the Company has taken a series of measures to ensure technology and data analysis tools to optimize supply
The Information Security Management Manual is a regulatory the normal reliable and secure operation of the system. The
chain management monitor logistics and inventory status
Company continuously improves the system optimizes resource in real time provide early warning of potential risks and document of the Company that specifies the information security
management principles objectives and specific requirements. allocation extends the life cycle of the system and enhances
formulate response plans.The manual's formulation realizes the effective operation and the vitality of the system to adapt to the ever-changing business
continuous improvement of the information security management demands and technological environment. Through continuous
In addition the Company has strengthened its disaster
prevention measures and improved its contingency plans
system and embodies the Company's commitment to society. technology upgrades and management optimization the
Company provides strong protection for business continuity and to ensure that it can respond quickly and minimize losses The Company's information security objectives are * 0 when extreme weather events occur.incidents/year for confidential/secret information leakage; * ≤ 3 data security.Incidents/year for business system failures affecting production At the same time the Company actively promotes low-
operations; * 0 incidents/year for abnormal disconnection of the carbon transformation and integrates the concept of
backbone network for more than 4 hours; and * 0 incidents/year sustainable development into all aspects of supply chain
for the Company's major information security incidents. management. By optimizing transportation methods
reducing carbon emissions using environmentally friendly
materials and improving energy efficiency the Company
not only minimized the negative impacts of extreme
0 0 weather but also enhanced the competitiveness of its supply chain in the context of climate change.incidents/year incidents/year
confidential/secret information leakage abnormal disconnection of the backbone network for
more than 4 hours
≤3 incidents/year 0 incidents/year
business system failures affecting production Company's major information security incidents
operations
602.Customer Satisfaction and Consumer Rights Protection Practices
I
1）Customer Satisfaction
II satisfaction
III rate（1）The Company always prioritizes user satisfaction at the core and （2）Conducting satisfaction surveys to understand customer needs in
IV continuously strives to improve the user experience. The Company focuses all aspects. C
on following the needs and feedback of the users and is committed to usto
V responding to each and every one of the demands and expectations of the
In 2024 the Company conducted a customer satisfaction survey using m
users through efficient and high-quality services. The Company's service goal a questionnaire based on six key dimensions such as satisfaction with
VI is “Full Service for Customer Complaints Zero Complaints for the Service”
sales personnel satisfaction with product development satisfaction with
and the service policy is “Fast Accurate and Comprehensive” to ensure product quality satisfaction with delivery satisfaction with service and
that every customer can get a timely accurate and comprehensive service the customer's willingness to recommend LONCIN to him/her. The survey
experience. In the principle of service the Company strictly implements the strictly follows the Customer Satisfaction Survey Management Measures
“Three Guarantees” service requirements and provides 100% unconditional in accordance with the sales accounted for more than 80% of the full 25.56%
service for customer complaints that meet the requirements; for cases that do coverage of the customer survey as well as sales accounted for 20% of
not meet the requirements the Company will also consult amicably with the the customers within the completion of more than 5% of the principle of
customer and provide high-quality solutions. For the realization of this service the plan to complete the survey of the number of customers 42 a total
concept the Company has established a comprehensive service procedure of 42 questionnaires. Finally the actual number of completed survey 70.16%
and process system which includes: After-sales Service Control Procedure customers was 42 recovered 42 valid questionnaires were recovered
Market Quality Information Management Measures “Three Guarantees” Service completion rate of 100.00%. The survey results show that the overall
Management Measures After-sales Maintenance Service Management Measures customer satisfaction performance is excellent of which the satisfaction
Customer Training Management Measures and Customer Satisfaction Assessment and very satisfied rate is 95.71%; the general satisfaction rate is 3.33%;
Management Measures. and the dissatisfaction rate is 0.95%. In response to customer feedback
of “general satisfaction” “dissatisfaction” and other comments and
In response to customer complaints the Company has specifically formulated suggestions the Company has sorted out 12 items that need to be
the Market Quality Information Management Measures and set up a specific improved. At present six items have been successfully implemented and
“Market Quality Penalty Ticket” procedure in the OA system. For quality issues completed and the remaining six items are being positively progressed.that need to be rectified the relevant departments will quickly analyze the very satisfied
causes and work out as well as implement improvement measures. For the rate
typical quality problems the Company adopts the 8D report for systematic
progress and the Company arranges special persons to follow up on penalty 6 items
ticket dispositions to ensure that every problem can be handled appropriately. successfully implemented and completed
In order to continuously improve the quality of service the Company will
summarize and analyze the disposition of market quality information feedback
from customers every month and every year form and output monthly and 6 items
annual reports and organize regular monthly quality meetings to present
being positively progressed
and notify the main market quality problems ensuring that the problems are
promptly followed and solved. The important quality issues improvement
measures will be incorporated into the monthly key tasks of the relevant
departments to ensure that the issues are prioritized and dealt with.
100%快准全
无条件提供服务
61
atisfa
ction in
S 2 0er
24I
II
III
（3）Enhancing the customer
IV
experience
V
VI The Company adheres to the conceptof “Customer Demand as the （4）Honors awarded by customersCenter” and carries out customer
service in every aspect of the
Company's production operation and LONCIN 2024 has been awarded the
management. 2024: The Company European Top Enterprise (STIGA)
has committed to creating moreintelligent and humanized products “Outstanding Quality Improvementfor users. Through the application of Award” an honor that not only
a number of technologies such as reflects the team's persistent pursuit
intelligent instruments AMT automatic of refinement but also highlights the
gearshift ARAS driver assistance Company's commitment to continually
and intelligent electronically improving customer satisfaction
controlled hybrid technology the and brand competitiveness in the
Company has effectively improved
vehicle safety handling comfort and global market. By continuously
intelligence and enhanced the user's promoting quality improvement and
driving experience and the ability of technology upgrading the Company
user connectivity. Meanwhile the has successfully achieved significantCompany organizes “QJMOTOR improvement in product performanceRiding Campus” “Safety Training” which has won high recognition
“Benelli Weekend” and other
activities to create a rich immersive from industry authorities and further
and scenario-based experience for strengthened the strategic partnership
users. These activities not only allow with STIGA.users to understand the product
more deeply but also build a platform
for communication and interaction
so that users can feel the brand's
temperature and care in the sharing
and experience. 2024 Awarded the European Top Enterprise (STIGA)
“Outstanding Quality Improvement Award for 2023”
622）Consumer Rights Protection Participation in major exhibitions in 2024:
2024.10 the Company appeared at the 136th China
I （1）Responsible marketing 2024.01 the Company attended Intersolar North Import and Export Fair with a variety of products and
America 2024 with EP3600 and other star products. With LONCIN was strongly settled in the Electric Power Zone II The Company is committed to enhancing user excellent product performance and innovative technology and the New Energy and Intelligent Mobility Zone which
III satisfaction and continuously optimizing the
comprehensively demonstrated the Company's latest
the Company attracted a lot of attention from the industry technological achievements and innovative products in
service process and standards by responding to and demonstrated the strong capabilities and cutting- the field of green energy. The Company carries a variety
IV user demands and providing customized services edge layout of the Company in the field of new energy. of household small generators engines portable energy
on time. In respect of marketing and publicity the storage power supply and charging piles and other core
V Company strictly complies with the Advertising Law products with its intelligent environmentally friendly and
of the People's Republic of China and other laws 2024.02 the Company participated in the 25th efficient features attracted many professional visitors and The 135th China Import and Export Fair
VI and regulations regulates advertising and sales buyers to pay attention to the Company a comprehensive
behavior ensures the accuracy and consistency Beijing International RV and Camping Exhibition. At the display of the Company's strong capabilities and leading
of external information and prevents fraudulent exhibition the Company's newest product series - the edge in the field of intelligent energy solutions.publicity or excessive marketing. All external whole series of silent inverter generators and energy
publicity content such as energy consumption storage solutions made a stunning debut providing a new
safety intelligent functions and other data are intelligent and environmentally friendly energy solution 2024.10 Smart Nation Expo 2024 was grandly
required to be certified by the national authority. for RV and camping enthusiasts and highlighting the
Company's profound heritage and innovative strength in opened in October 2024 at the Kuala Lumpur International At the same time the Company incorporates Trade and Exhibition Center in Malaysia. LONCIN New
compliance marketing into the performance the field of outdoor energy. Energy made a wonderful appearance with its safe and
appraisal system of the sales employees and reliable new energy charging products and smart energy
explicitly requires the sales employees to strictly 2024.04 solutions focusing on its latest technical achievements the Company participated in the 25th comply with the high-standard responsible and innovative applications in the electric vehicle charging
marketing guidelines to ensure that the high- Beijing International RV and Camping Exhibition. At the pile industry which attracted wide attention from the
exhibition the Company's newest product series - the The Equip Exposition (GIE+EXPO) standard responsible marketing guidelines are exhibitors.implemented. In 2024 the Company conducted a whole series of silent inverter generators and energy
2024 in Louisville USA
total of 11 responsible marketing training sessions storage solutions made a stunning debut providing a new the Company participated in the Equip
involving 376 persons and a total of 65 hours of intelligent and environmentally friendly energy solution 2024.10
training which included new product promotion for RV and camping enthusiasts and highlighting the Exposition (GIE+EXPO) in Louisville U.S.A. In this
considerations and fair guarantee of sales and Company's profound heritage and innovative strength in internationally renowned garden machinery industry
services etc. to further strengthen the sense the field of outdoor energy. event the Company by virtue of the rich product line and
of responsibility and compliance of business cutting-edge technology exchanged in-depth information
employees and to build a strong foundation for the with global industry elites demonstrated its innovative
Company's responsible marketing philosophy. 2024.06 the Company participated in The Smarter achievements and strong capabilities in the field of garden
E Europe 2024. In this leading international smart machinery and further expanded the North American
energy industry event the Company with its advanced market enhancing the brand's popularity and reputation in
11 technological concepts and innovative products competed the international garden machinery field.with global counterparts and participated in the industry
responsible marketing training sessions exchanges and cooperation in depth which further the Company participated in the 81st Milan
enhanced the Company's visibility and influence in the 2024.11
376 field of international smart energy and contributed to the EICMA MOTOR EXPO (EICMA) with three brands (VOGE/persons global energy transition. LONCIN/BICOSE) a total of 31 models of exhibits with
outstanding product design cutting-edge technological
65 innovations and strong brand strength attracted the hours of training attention of motorcycle enthusiasts industry experts
and the media around the world and achieved extremely
outstanding exhibition results fully demonstrating the
Intersolar North America 2024 deep heritage and unlimited potential of the Company in
the field of motorcycles.
63（2）Cus tome r i n f o rma t i o n （3）Development of a responsive after-sales service networkprotection
I
II The Company has achieved significant results A.Full-fledged service procedures B.After-sales service resource allocation C.Comprehensive complaint response system
III by improving the system and training system to The Company has carefully organized a The Company has established a comprehensive
comprehensively strengthen the protection of The Company has established comprehensive after- professional and efficient technical and complaint-handling system prepared the Market
IV customer privacy and information security. The sales service procedures including an After-sales service team including two technical Quality Information Management Measures and
Company attaches great importance to customer Service Control Procedure Market Quality Information support employees six after-sales service set up a specific process in the KOA system.privacy and information security strictly follows
V Management Measures “Three Guarantees” Service employees one “Three Guarantees” The procedure is divided into two phases: the Data Security Law of the People's Republic Management Measures After-sales Maintenance processing employee one market quality rapid response to customers (replacement
of China Personal Information Protection Law of
VI Service Management Measures Customer Training information processing employee and two parts complete machines etc.) and internal the People's Republic of China and other laws and Management Measures Customer Satisfaction motorized after-sales service employees problem tracing (corrective measures preventive
regulations and formulates and improves a number Assessment Management Measures and so on. In which ensures that we can respond to measures and summarization) through which
of rules and regulations such as the Standard of the domestic market the Company relies on dealer customers' needs quickly and provide the Company is able to quickly solve customer
Conduct for Employee Information Security Privacy service as the main service and factory personnel accurate services in different situations. In problems while preventing the recurrence of
Protection Compliance Management Rules and service as a supplement forming a complementary terms of customer training the Company similar problems from the root cause. In 2024
other regulations so as to safeguard and protect service pattern. Also in Zhejiang Jiangsu adopts diversified customer training methods the Company's product and service complaint
the information security from the system level. Shandong and other places to set up offices to meet the learning needs of different handling rate reached 100% fully reflecting the
Organizing information security awareness training equipped with permanent service personnel to be customers including video online graphic Company's efficiency and standardization in
for new employees and data leakage prevention able to quickly respond to and promptly deal with door-to-door visit and on-site training after-sales service governance.training for R&D designers ensures that every customer installation and maintenance needs. In etc. to help customers quickly master the
employee always follows the customer privacy the international market the Company innovatively use of products and maintenance skills.protection norms in their daily work and integrates adopts the combination of customer self-built In order to facilitate customers to obtain
the concept of information security into every work service network and third-party service providers technical support at any time the Company
link. In 2024 the Company did not experience giving full advantage to the customer's local has built a multi-channel communication
any breaches of customer privacy or information resources and the third-party professional service platform customers can consult technical
which fully demonstrates the effectiveness of the capabilities to ensure that customers around the issues at any time through the phone 100%
Company's governance in protecting customer globe wherever they are can enjoy timely efficient e-mail QQ WeChat and other network
information. service complaint handling rateand professional service support and to truly realize communication tools but also through
the “Service without Borders”. the Company's website service hotline
WeChat official account and other channels
to dynamically understand the product
information and technical developments andafter-sales policy to truly realize the “One-click Reach Worry-Free Service”.
64Deliberate Planning and
I Long-term Vision 05
II
III
IV
V
VI
Targets Set for the 2030 Vision
Cooperation Build-up for Global Presence
65Targets Set for the 2030 Vision
I
II LONCIN is deeply aware of the urgency and importance of responding to climate
III change and is actively practicing the concept of green development. In order to
promote the sustainable development of the industry and help achieve the national
IV “Carbon Peaking and Carbon Neutrality” goal LONCIN has set a clear and challenging
target for the reduction of carbon emissions.V
In the process of low-carbon R&D layout we make all-around efforts focusing on key
VI links such as upstream supply manufacturing downstream use and product types
and are committed to building a more complete sustainable product system and low-
carbon ecological chain. At the same time we have clearly defined the strategic goal
of increasing the proportion of clean energy use and plan to increase the proportion
of renewable energy in total energy consumption in our production plants to 30% by
2030 to take practical actions to promote green development and contribute to the
realization of carbon emission reduction targets.In the field of green procurement we are committed to the concept of sustainable
development not only exploring and innovating in the application of green materials but
also setting clear and forward-looking goals in the procurement of raw materials. We
actively guide our suppliers to adopt more environmentally friendly production modes
and promote the sustainable development of the industrial chain in all aspects. Looking
ahead to 2030 we aim to increase the proportion of suppliers using green power in
the production process to 40% thereby contributing to the creation of a green and
low-carbon industrial ecosystem and to environmental protection and sustainable
development.plan to increase the
proportion of renewable
In the field of green production we are committed to environmental responsibility energy in total energy consumption in our
production plants to
and are steadily moving forward with the goal of meeting emission standards and
environmental information transparency. On the one hand we continuously strengthen 30%
the management of environmental protection emission control and efficient use aim to increase the proportion
of suppliers using green power
of resources and energy etc. By improving the production process and upgrading in the production process to
the environmental protection equipment we ensure that 100% of the three-waste
emissions meet the standards and reduce the pollution of the environment from the 40%
source. On the other hand we attach high importance to the disclosure and supervision the three-waste emissions meet the standards
of environmental information and make every effort to realize 100% completion of 100%
the declaration monitoring and public announcement of environmental information
completion of the declaration monitoring and public
so that the production activities of enterprises can operate under the sunshine. In announcement of environmental information
addition through the improved emergency plan and safety management system we are 100%
committed to continuing to achieve the goal of zero environmental pollution accidents
make unremitting efforts to build a green and safe production environment and
practice the concept of green development through practical actions.
66Cooperation Build-up for Global Presence
I 1.Intensified Industry Cooperation
II
III As a reputable enterprise in the field of motorcycles In terms of advocating green supply chain BMW's cutting-edge advanced technology and
and general-purpose power equipment LONCIN cooperation LONCIN actively advocates innovative concepts. The two parties quickly set up
IV has always upheld a high sense of responsibility enterprises in the industry to jointly build a a joint R&D team to collaborate on key technical
and mission and has actively participated in the green supply chain closely cooperates with indicators such as engine performance improvement
V development and construction of the industry. upstream and downstream suppliers and fuel economy optimization and emission reduction.As a member of the Chongqing Automobile and requires suppliers to adopt environmentally By integrating the advantageous resources of both
VI Motorcycle Industry Association LONCIN has made friendly materials and optimize production parties and collaborating closely on technical research
positive contributions to the formulation of industry processes to reduce carbon emissions. In the and development the Company strives to break
standards the fight against unfair competition procurement of raw materials we prioritize through the technological bottleneck in the industry
brand building the enhancement of services and suppliers that have passed the ISO 14001 and bring consumers motorcycle engine products that
the expansion of overseas markets. The Company environmental management system certification are more efficient environmentally friendly and with
takes innovation as the lead and promotes the to promote the green transformation of the better performance.transformation and upgrading of the industry with entire supply chain. At the same time we
full strength. With the strategy of steady scientific organize suppliers to carry out energy-saving
and technological research and development the and emission-reduction training and experience
To meet future requirements for low emissions and
low fuel consumption the two parties plan to jointly
Company has successfully realized the independent exchange activities share green production
innovation of products and technology so that technology and management experience
research and develop new combustion technologies
and work together to enhance the green to precisely control the fuel injection volume and air
the scientific and technological competitiveness development level of the supply chain. intake effectively reducing the emission of hazardous
has achieved a qualitative leap and has set a new substances in the tailpipe so as to comply with more
benchmark for the high-quality development of the In the field of industry technology research stringent environmental protection standards. 11
industry. and development cooperation LONCIN has
actively participated in it and has carried out
a series of in-depth research and development
cooperation activities together with BMW
making every effort to promote technological
innovation in the field of motorcycle engines. As
early as May 2024 LONCIN and BMW entered
into an in-depth cooperation agreement on the
engine program aiming to inject new vitality
into the global motorcycle market and further
promote the development of motorcycle engine
technology by leaps and bounds. LONCIN and BMW
Deep Cooperation
This cooperation focuses precisely on the
development and production of new large-
displacement engines. Relying on its deep
technical background and rich manufacturing
experience accumulated over many years of
deep cultivation in the field of motorcycle
engines LONCIN is deeply integrated with
11 Loncin and BMW ｜ Successfully Signed Contract for New Engine Project：https://www.loncinindustries.com/Group/
NewsDetails.aspxcatid=7-68-80&id=2146821978
672.Alignment with International Standards
I
II
III
To ensure product emissions in step with To ensure management systems in compliance In-depth research into the specific
IV To keep consistent with the international
international practices for motorcycle export with international standards we refer to the
terms and requirements of the above
ESG disc losure standards LONCIN
internationally recognized ISO 14064 standard standards to ensure that the practices
V LONCIN refers to the European Union's Euro V uses the widely recognized global ESG for greenhouse gas accounting and reporting and disclosures of enterprises in the emission standards and continuously optimizes international standards such as the Global
its product design and production process to establish and improve the internal carbon
three core dimensions of environment (E)
Reporting Initiative (GRI) standards and the
VI
enhance the environmental performance of emission management system accurately
society (S) and corporate governance (G)
Sustainability Accounting Standards Board
its products. We improve engine combustion account for the enterprise's carbon emissions
are in line with the international advanced
(SASB) standards as a frame of reference.technology through research and development and formulate scientific emission reduction
level for example in the environmental
to reduce the emission of hazardous substances targets and measures. We also introduce
dimension of the benchmarking of the
in exhaust gases ensuring the competitiveness i n te rna t iona l advanced env i ronmenta l
GRI's climate-related standards to sort
out the key information on the sources of
of our products in the international market management concepts and methods such as
Life Cycle Assessment (LCA) to assess the carbon emissions energy use and impact
and reducing the r isk of environmental environmental impact of products throughout on the ecosystem of the enterprise and
noncompliance. At the same time the Company the en t i re p rocess f rom raw mate r ia l to systematically sort out and show the
pays close attention to the updated dynamics GRIprocurement production and manufacturing efforts and achievements of the enterprise
of international standards and adjusts the use to disposal and recycling and to optimize in susta inab le deve lopment whi le
product standards in time to keep in sync with the environmental performance of products providing comprehensive and transparent
the international advanced level. information to stakeholders to promote throughout their life cycle. the common sustainable development of
SASB the enterprise and society.E u r o ISO
514064
E Environmental
E u r o
5+ LCA
S Social
G Governance
68I 06 Appendix
II
III
IV
V
VI
Index
Key Performance
69Index
I Chapters GRI Sustainability Reporting Guidelines for A-share Listed Companies
II
I. LONCIN’s Sustainability Policy and Performance Data 2-22 -
III
1. ESG Strategy and Vision
IV 2-1，2-2，2-3，2-6
V 2. Key Performance Indicators
VI (1) ESG Key Performance Data 201-1，
(2) Analysis of Material Topics
(3) Engagement with Stakeholders 2-29，413-1 Stakeholder Engagement
(4) Response to the United Nations SDGs
II. Environmental Initiatives for Green and Digital Development
1. Green Intelligent Manufacturing and Low Carbon Production Innovation Driver Technology Ethics
(1) Digital Transformation Driven by Intelligent Manufacturing 416-1 Pollutant Emissions Product and Service Security and Quality
(2) Clean Energy Application and Energy Conservation and Energy Use
Emission Reduction Technology Upgrade 201-2，306-1，306-2，
301-1，301-2，301-3，306-3，306-4 Waste Treatment Environmental Compliance Management Circular Economy(3) Practices of Green Factory and Circular Economy
2. Ecological Conservation and Responsible Contributions
(1) GHG Management Initiatives and Results 305-1，305-2，305-3，305-5，306-2， Ecosystem and Biodiversity Conservation
(2) Water Management Initiatives and Results 303-4，303-5，306-1，306-2， Water Resources Utilization
(3) Energy Management Initiatives and
Energy-Efficient Technology Achievements 306-2， Energy Use
(4) Biodiversity Conservation 304-1 Ecosystem and Biodiversity Conservation
3. Pioneering Efforts to Address Climate Change Responding to Climate Change
(1) “Carbon Peaking and Carbon Neutrality” Goals 416-2
(2) Climate Risk Management and TCFD Framework Response 201-2
70Chapters GRI Sustainability Reporting Guidelines for A-share Listed Companies
III. Social Initiatives and Innovative Development 2-7
I
1. Human Resources Development Employee Stakeholder Engagement
II
(1) Employment and Compliance Management 401-1，401-2，404-3，405-1
III (2) Diverse Composition of the Workforce 405-1，406-1
IV (3) Employee Benefits and Safeguards 401-3
V (4) Employee Rights and Supervision 401-3
VI (5) Occupational Health and Safety Management 403-1，403-2，403-3，403-5，403-7，403-8，403-10
(6) Diversified Training and Career Development Paths 404-1，404-2，404-3
2. Technology-Empowered Industrial Upgrade Driven by Innovation
(1) Product Innovation Results and R&D Investment 302-1，302-4，302-5，416-1，417-1 Innovation Driver Technology Ethics
(2) Supply Chain ESG Management and Supplier Empowerment Program 204-1，302-1，302-4，302-5，308-1，414-1 Supply Chain Security Equal Treatment of SMEs
(3) Customer Management and Satisfaction Enhancement Program 302-1，302-4，302-5，417-2
(4) Property Rights Management 417-1
3. Rural Revitalization and Community Outreach
(1) Sustained Investment in Social Welfare Programs 413-1 Social Contributions
(2) Rural Industry Support with Additional Channels 413-1 Rural Revitalization Social Contributions
IV. Compliance and Transparent Governance
1. Reinforcement of Compliance and Corporate Governance Structure
(1) Promotion of the Leadership of Party Building 404-2
(2) Board ESG Oversight Mechanism and Governance Structure Improvement 2-9，2-10，2-11，2-12，2-14，2-16，2-17
(3) Anti-corruption Compliance System and Data Security Protection 2-27 Data Security and Customer Privacy Protection Anti-commercial Bribery and Anti-corruption
(4) Risk Management and Internal Control 2-27，207 Anti-commercial Bribery and Anti-corruption
2. Transparent Dialogue Targeting Specific Stakeholder Groups
(1) ESG Communication and Disclosure Mechanism Specific to Investors 205-1，205-2，418-1 Responding to Climate Change Data Security and Customer Privacy Protection Stakeholder Engagement
(2) Customer Satisfaction and Consumer Rights Protection Practices 417-1，417-2，418-1 Supply Chain Security Product and Service Security and Quality Data Security and Customer Privacy Protection Stakeholder Engagement
V. Deliberate Planning and Long-term Vision
1. Targets Set for the 2030 Vision Responding to Climate Change Innovation Driver
2. Cooperation Build-up for Global Presence Anti-unfair Competition
(1) Intensified Industry Cooperation 2-28，308-1 Due Diligence Investigations
(2) Alignment with International Standards Innovation Driver
71Key Performance
I
II Types Item FY2022 FY2023 FY2024 Indicator Unit
III Gas 2081733.00 2677584.00 2566771.00 Cubic meter
IV Diesel fuel 128131.00 61232.00 88531.00 Liter
V Use of Energy Petrol 372966.00 443053.00 503741.00 Liter
VI Renewable energy 0 28760965.00 162520.00 (kWh) kilowatt hour
Purchased electricity 41899138.00 40691138.00 59197270.00 (kWh) kilowatt hour
Total waste gas emissions 2510617200.00 2579906290.00 2572050400.00 Cubic meter
Particulate matter 15.36 18.48 7.03 Tons
Gaseous Non-methane hydrocarbons 0.51 3.38 8.44 Tons
Pollution Nitrogen oxides
Emissions 1.33 1.27 0.47 Tons
ESG Sulfur oxides 0.04 0.33 0.02 Tons
Key VOC emissions 29.61 21.39 12.21 Tons
Performance Ammonia 0.06 0.04 0.10 Tons
Indicators Water Use Municipal water purchases 797949.00 768149.00 1147600.00 Tons
Total wastewater discharge 394833.00 560974.00 623024.00 Cubic meter
Chemical oxygen demand (COD) 44.31 66.98 58.54 Tons
Five-day Biochemical Oxygen Demand (BOD5) 9.74 28.58 15.71 Tons
Suspended substance 9.26 16.82 45.19 Tons
Water Ammonia nitrogen 3.76 7.45 4.27 Tons
Pollution Total phosphorus
Discharge 1.26 0.64 0.84 Tons
pH 7.27 7.12 7.14 Dimensionless
Anionic surfactants 0.04 0.06 0.16 Tons
Fluoride (measured as F-) 0.48 0.66 0.95 Tons
Oil type 0.38 1.38 3.85 Tons
Formaldehyde 0.19 0.11 0.00 Tons
72
Environmental PerformanceTypes Item FY2022 FY2023 FY2024 Indicator Unit
Total recyclable waste 195.00 189.00 448.81 Tons
I Total general solid waste 195.00 189.00 448.81 Tons
II Total recycling of general solid waste 195.00 189.00 448.81 Tons
III Emission intensity of general solid waste 0.02 0.01 0.03 Tons/million in revenueWaste Management Total hazardous waste 421.77 487.99 4630.25 Tons
IV and Pollutant
Total hazardous waste incineration
Prevention 75.82 129.11
955.91 Tons
V Total hazardous waste recycling 345.95 358.88 3276.29 Tons
VI Emission intensity of hazardous waste 0.04 0.03 0.31 Tons/million in revenue
Packaging materials used: wooden pallet 50144.00 650.00 136390.00 Piece
Green Package Packaging material applicable: wooden buckboard box 30000.00 30000.00 1923.00 Piece
Packaging material used: plastic box 6910.00 10101.00 2004.00 Piece
ESG Packaging materials used: cardboard box 2305605.00 2018796.00 4607451.00 Piece
Key Transportation Number of electric private car ownership 32.00 193.00 387.00 Vehicle
Performance Number of fuel private car ownership 2368.00 2456.00 3152.00 Vehicle
Indicators Environmental Environmental Investment 149.00 880.00 940.99 RMB Ten Thousand
Investment Total number of employees 8535 8932 10529 Person
Master's degree and above 218 224 232 Person
Bachelor's degree 1321 1393 1571 Person
Education Junior college 1259 1350 1628 Person
Secondary vocational school/High school 2387 2611 3167 Person
Junior high school and below 3350 3354 3931 Person
Employee Training Number of trainings during the year 7610 8165 4540 Times
Total number of employees trained 7610 8165 10167 Person
Number of basic-level employees trained 7242 7744 9753 Person
Employee Type Middle management trained 313 365 362 Person
Senior management trained 55 56 52 Person
Total hours of employees trained 15220 16200 20334 Hours
Average length of employee training 2 2 2 Hours
Total number of hours of basic level employees trained12 11540 11990 16194 Hours
Employee Category Total hours of middle management trained 13 3130 3650 3620 Hours
Total hours of senior management trained 14 550 560 520 Hours
73
Environmental Performance Social PerformanceTypes Item FY2022 FY2023 FY2024 Indicator Unit
I
Number of disclosure reports
II 51 64 71 Piece
III Number of meetings of the Board of Directors 6 7 5 Times
IV Number of meetings of the Supervisory Board 5 3 4 Times
V
Number of meetings of the Committee of Auditors 5 4 5 Times
VI
Number of meetings of the Nominating Committee 1 5 2 Times
Number of meetings of the Remuneration and Appraisal Committee 1 1 1 Times
Number of members of the Board of Directors 9 9 9 Person
889
Genders Male directors Person
ESG Female directors 1 1 0
Key Person
Performance
Type Independent directors
3 3 3 Person
Indicators
Non-independent directors 6 6 6 Person
Operating income 1241017.26 1306648.13 1682224.10 RMB Ten Thousand
Net profit 52732.37 58342.18 112127.17 RMB Ten Thousand
Total tax payments 43859.09 53821.44 91449.17 RMB Ten Thousand
Total cash dividends (including tax) 16428.33 20535.42 82141.67 RMB Ten Thousand
Cash dividends per 10 shares 0.80 1.00 4.00 RMB
R&D investment 56163.35 52397.51 53453.00 RMB Ten Thousand
Overseas income 826590.00 855353.00 1088973.54 RMB Ten Thousand
12 Total number of hours of basic level employees trained: 16194 hours is the total number of training hours completed by all basic level employees who received training during the statistical cycle. Total number of hours of basic level employees trained ≈ training hours per basic level employee*number of basic level employees trained.
Average length of training per basic level employee: According to statistics the average length of training per employee is about 2 hours.Scope of data: The above data covers all training programs during the statistical cycle including on-line courses off-line centralized training skills enhancement training etc.
13 Total number of training hours of mid-level managers: 3620 hours is the total number of training hours completed by all mid-level managers trained during the statistical cycle. Total number of training hours of mid-level managers ≈ per employee training hours of mid-level managers * number of mid-level managers trained.
Average training hours per mid-level manager: statistically the average training hours per employee is about 10 hours.Scope of data: The above data covers all training programs during the statistical cycle including on-line courses off-line centralized training skills enhancement training etc.
14 Total number of training hours of senior management: 520 hours is the total number of training hours completed by all senior management trained during the statistical cycle. Total number of training hours of senior management ≈ per employee training hours of senior management * number of senior management trained.
Average training hours per senior manager: statistically the average training hours per employee is about 10 hours. 74
Scope of data: The above data covers all training programs during the statistical cycle including on-line courses off-line centralized training skills enhancement training etc.Corporate Governance Performance Economic IndicatorsLONCIN WeChat Official Account VOGE WeChat Official Account
Investor Company Loncin C No. 116 Juye Road E-mail：
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