Environmental Social and

Governance Report

HANGZHOU FIRST APPLIED MATERIAL

CO. LTD.Stock Code: 603806.SHReport Instructions

Letter from the Chairman

About FIRST

2024 Key Performance and Awards

Response to UN Sustainable Development Goals Occupational Health and Safety (OHS)

ESG Governance Diversity Equity and Inclusion (DEI)

Stakeholder Engagement Human Rights and Employee Rights Protection

Materiality Assessment for ESG lssues Employee Development and Training

Sustainability Risks and Opportunities Management Social Responsibility

Sustainability Metrics and Targets

Response to Climate Change Corporate Governance

Environmental Compliance Management Standardized Operations

Energy Management Risk Management and Internal Controls

Water Resource Utilization Business Ethics

Emissions & Waste Management

Chemical Safety

Innovation-driven Development Appendix 1: Index of SSE Guidelines No. 14

Intellectual Property Protection Appendix 2: GRI Standards Content Index

Product and Service Safety and Quality Appendix 3: Feedback Form

Data Security and Customer Privacy Protection

Supply Chain SecurityThis report is the Environmental Social and Governance (ESG) Report published by Hangzhou First Applied Material

Co. Ltd.(FIRST). The purpose of this report is to showcase FIRST's practices and achievements in sustainable

development and to disclose the work done by FIRST in the areas of environment social and governance in 2024 and

previous years.The organizational scope of this report covers Hangzhou This report is prepared in accordance with Shanghai

First Applied Material Co. Ltd. and its subsidiaries Stock Exchange Listed Company Self-Regulatory

consistent with the consolidation scope of FIRST Guidelines No. 14 – Sustainability Reporting (Trial)

(603806.SH) in the financial statements. This report is issued by the Shanghai Stock Exchange(SSE);

published annually in alignment with the fiscal year with reference to the Global Reporting Initiative (GRI

covering the period from January 1 2024 to December Standards 2021)

31 2024. To enhance the readability of the report some as well as the Sustainability Accounting Standards

content or data may trace back to previous years or look Board (SASB) standards and the recommendations

forward to subsequent years. Unless otherwise stated of the Task Force on Climate-related Financial

this report uses the RMB as the currency unit. Disclosures (TCFD).Unless specifically stated the data in this report comes This report is available for download in electronic

from the company's periodic or interim disclosures. If format from the Shanghai Stock Exchange

there are discrepancies please refer to the disclosed (www.sse.com.cn) and Hangzhou First Applied

periodic or interim announcements. Other data comes Material Co. Ltd.'s website (www.firstpvm.com). This

from the company's internal management systems and report is available in both Chinese and English. In case

statistics including some historical data. The company of discrepancies or ambiguities between the Chinese

assures that there are no false records misleading and English interpretations the content in the Chinese

statements or material omissions in the content of this version shall prevail. For further inquiries questions or

report. suggestions regarding this report please contact:

This report contains forward-looking statements

including business plans and development strategies.These statements reflect the company's predictions of

future events based on the current situation and may be

influenced by unknown and uncertain factors that

materially differ from the actual results. No forward-

looking or expected statement in this report constitutes

a material commitment by the Company to investors.For ease of expression and reading the terms

"FIRST" "the company" "we" and "our" in this report

all refer to Hangzhou First Applied Material Co. Ltd.and its subsidiaries.FIRST 2024 ESG Report 2In 2024 the global energy transition and climate action entered a critical stage. Artificial intelligence drove

profound changes and growth in the global economy accelerating the wave of technological revolution

towards digitalization intelligence and decarbonization. Facing these trends we embrace change and view

ESG as a core driver of long-term value. Fully aware of our responsibility and mission we approach ESG

and sustainability from the perspective of growth and opportunity and actively advance our corporate

responsibility and sustainability efforts.This year we gained deeper insight into our carbon footprint and cultivated new momentum for green

development. We completed our first company-wide greenhouse gas (GHG) emissions accounting and

worked with leading third-party institutions to map our carbon emissions. Meanwhile we conducted full life-

cycle carbon footprint assessments of our core products laying a solid foundation for process optimization

and carbon reduction. Driven by innovation we improved energy efficiency through process upgrades

equipment digitalization and cross-division energy collaboration. Circular economy practices deepened as

we worked with partners to maximize resource use and minimize waste including shared pallets recycling

and auxiliary material recovery initiatives. Leveraging our advantage in photovoltaics we invested in

distributed PV power projects and steadily increased renewable energy use in operations creating a far-

reaching impact from internal decarbonization to industry-wide collaboration.This year we remained committed to diversity inclusion and social responsibility. Through "FIRST

Corporate University" and diversified training programs we strengthened our "learning organization" and

provided comprehensive career development support ensuring employee health safety skill growth and

motivation. Staying true to our people-oriented philosophy we built a diverse talent pool and helped new

and overseas employees integrate into our culture. We promoted inclusive development through various

activities and benefits creating a caring workplace. In rural revitalization we took concrete actions to

support agriculture aligning with the goal of common prosperity through targeted and effective assistance.This year we further strengthened technological innovation and corporate governance. We continued to

improve our ESG governance framework with the Board of Directors — Strategy and Sustainability

Committee at the core. Internal controls compliance and business ethics were reinforced to support high-

quality and sustainable growth. Guided by our philosophy of "Innovative Technology for the Future" we

stayed focused on becoming a leading technology-driven enterprise enhancing core competitiveness and

advancing independent R&D and industrial development in new materials. In 2024 we were recognized

with honors such as the "Yangtze River Delta Business Innovation Model" and the "Zhejiang Science and

Technology Progress Award."

I believe true sustainability lies in the deep alignment of technological ambition and a sense of responsibility.Looking ahead we will embrace the new era of quality growth tackle new materials challenges and uphold

our mission. We will explore promising sectors such as new energy electronic information and

environmental protection focusing on digitalization decarbonization sustainability and innovation.Together we will contribute to the national "Dual Carbon" strategy and create a greener future.FIRST 2024 ESG Report 3Hangzhou First Applied Material Co.Ltd.Development Strategy: Focus on the main PV business and vigorously develop other new material industries.Development Vision: To become a world-class materials supplier.Hangzhou FIRST

Suzhou FIRST Hangzhou First Zhejiang New

Hangzhou First

Electronic Material

Chuzhou FIRST Energy Development

Functional Material

Co.Ltd. and its Co.Ltd. and its

Jiaxing FIRST Co.Ltd

subsidiaries subsidiaries

Thailand FIRST

Vietnam FIRST

Responsible for Conducting electronic Responsible for the Responsible for

material business business of functional developing photovoltaic developing small

including Dry Film film materials such as

business such as PV

Photoresist FCCL and Aluminum Laminated

ground power stations

Film and PV Backsheet. Film and RO industrial and Photosensitive Solder

Applications include Membrane Support Resist. commercial and

Fabric.encapsulating Applications include household distributed

Applications include

enhancing efficiency graphic etching of PCB

the flexible packaging power station

and protecting PV and insulation of lithium batteries and business.protection of soft board

modules. the support of water

substrates and fine purification

circuit. membranes.FIRST 2024 ESG Report 4About FIRST

Suzhou Factory Chuzhou Factory

Hangzhou Headquarters Jiaxing Factory Jiangmen Factory

FIRST Advanced Material

Thailand Factory Vietnam Factory Anji Factory R&D Institute

PV Products

Jiangmen*

Chuzhou

Suzhou

Jiaxing

Hangzhou Headquarters

PV Film

Electronic Materials

Functional Materials

Electronic Materials

Anji

Ji’an

Suining

Huizhou

Jiangmen*

LaschaThailand

Hangzhou Headquarters Overseas base

PV Film Production Base

HaiphongVietnam

PV Film & PV Backsheet LaschaThailand

Electronic Materials

* Under construction

FIRST 2024 ESG Report 5About FIRST

Photovoltaic Materials

Our Products

Photovoltaic Filmm

Used for encapsulating and protecting the

front and back of crystalline silicon solar

cell modules as well as the power

generation layers of thin-film solar

modules. Depending on the raw materials

and manufacturing processes it includes

types such as EVA film white EVA film

EPE film and POE film. Photovoltaic Film Photovoltaic Backsheet

Photovoltaic Backsheet

A weather-resistant protective material used on the backside of solar modules.Downstream Application

Photovoltaic Module

Photovoltaic modules are devices that convert solar energy into electrical

energy consisting of multiple solar cells glass backplates and frames

and are the core components of photovoltaic power generation systems.Photovoltaic Module

Terminal Applications

Centralized PV Power Distributed PV Power Station Distributed PV Power Station

Station -Business & Industry - Residential Houses

Distributed PV Power

Distributed PV Power Station

Centralized PV Power Station Station-Business & Industry

- Residential Houses

FIRST 2024 ESG Report 6About FIRST

Electronic Materials

Our Products

Dry Film Photoresist Flexible Copper Clad Laminate Photosensitive Solder Resist

A film material used for image transfer The base material used for An insulating protective material

on rigid and flexible printed circuit flexible printed circuit boards. used for fine circuitry in printed

boards high-density interconnect circuit boards MiniLED Micro-

boards and packaging substrates. LED and camera module sectors.Dry Film Photoresist Flexible Copper Clad Laminate Photosensitive Solder Resist

Downstream Application

Printed Circuit Board

Printed circuit board (PCB) is a substrate used to connect and

support electronic components achieving electrical connections

through conductive lines and is the core component of electronic

devices.Terminal Applications

Consumer Communication

Electronics

Consumer Communication

Humanoid Robot

Electronics

FIRST 2024 ESG Report 7About FIRST

Functional Film Materials

Our Products

Aluminum Laminated Film

A multilayer composite material

containing aluminum foil used for the

soft packaging of lithium batteries.Membrane Support Fabric

A base material used to support

Aluminum Laminated Film Membrane Support Fabric

water purification membranes.Downstream Application

Soft Pack Battery

Soft pack battery is a lithium-ion battery packaged with aluminum-plastic film

which is lightweight soft and has high energy density.Soft Pack Battery

Water Purification Membrane

Water treatment membrane is a thin film used for filtering and separating

impurities in water and is used for purifying and desalinating water.Water Purification

Membrane

Terminal Applications

Consumer Energy Storage AI Computing

Electronics Power Station Power Facilities

Consumer Energy Storage

Humanoid Robot

Electronics Power Station

Desalination Urban Sewage Treatment

Desalination Urban Sewage Treatment

FIRST 2024 ESG Report 82024 Key Performance and Awards

We mainly engaged in the R&D production and sales of Photovoltaic Materials Electronic Materials and

Functional Film Materials. We are the largest supplier of PV films globally with a market share of about 50%. We

offer the richest product line that can meet the encapsulating requirements of various types of crystalline silicon

cells and thin-film modules. The cumulative shipments of our PV films can encapsulate over 1145GW of PV

modules.Revenue (RMB billion)

Net Profit (RMB billion)

Net Asset (RMB billion)

Total Asset (RMB billion)

FIRST 2024 ESG Report 9Outstanding Contribution Award by China AAA-Level Enterprise for Contract Compliance

Photovoltaic Industry Association and Creditworthiness in Zhejiang Province

Yangtze River Delta Business Innovation Model Top 500 Private Manufacturing Enterprises in

2023 China 2024

Second Prize of Zhejiang Science and The Sixth Batch of National SRDI "Little Giants"

(HANGZHOU FIRST ELECTRONIC MATERIAL CO.Technology Progress Award

LTD.)

FIRST 2024 ESG Report 10Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

Response to UN Sustainable Development Goals

We actively respond to and support the United Nations Sustainable Development Goals (SDGs) striving to align our

business operations with global sustainability initiatives and contributing to the achievement of global sustainable

development. Centered around four core themes below we integrate environmental protection value chain

management employee and social well-being and corporate governance into our sustainability practices.We

proactively seek synergies with the SDGs covering 14 specific goals including gender equality industry innovation

and infrastructure responsible consumption and production and climate action.This report presents our sustainability philosophy and practices comprehensively reflecting our firm commitment to

the global sustainable development agenda.We firmly believe that through close collaboration and joint efforts with all

stakeholders we can build strong momentum to tackle challenges across environmental social and governance

dimensions. Together we will contribute to the realization of the SDGs and inject lasting vitality into global

sustainable development.Green Development for a Innovation and Collaboration for

Sustainable Future a Responsible Value Chain

FIRST 2024 ESG Report 12Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

Response to UN Sustainable Development Goals

Caring for Employees and Integrity and Compliance to

Building a Harmonious Ecosystem Strengthen Corporate

Governance

FIRST 2024 ESG Report 13Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

We are committed to promoting global and corporate sustainability by integrating sustainable development concepts

into our daily operations. We also plan and implement long-term ESG management strategies to create value for the

economy society and the environment. We always value and listen to the voices of various stakeholders adhere to

compliance continuously enhance our sustainability awareness and capabilities and aim to achieve sustainable

development goals through solid ESG practices.Innovation-driven & Digital Innovation &

Green Development Intelligent Operations

Continuously drive technological innovation optimize Independently develop and use digital tools and

products and services and actively promote intelligent production systems to improve efficiency

technological advancements in the global clean energy and optimize resource allocation for sustainable

industry. digital and intelligent development.Compliance Management& Photovoltaic Empowerment &

Steady Development Low-Carbon Circulation

Strictly comply with regulations and environmental Reduce consumption and emissions promote

requirements ensuring legal compliance precise green energy and explore carbon offset and

management and steady growth. neutrality measures to gradually achieve carbon

neutrality and contribute to a sustainable future.We continue to refine our ESG management system striving for ongoing optimization.We have established an ESG governance framework with a clear structure defined Decision-making

roles and efficient operations consisting of three levels: Decision-making Management

and Execution ensuring effective ESG implementation. ESG performance is also a key Management

indicator in evaluating the management team's performance and we are exploring a

mechanism linking ESG results to compensation with appropriate assessment weights Execution

ensuring ESG principles are integrated into all aspects of the company's operations.In our ESG governance framework the Board of Directors holds

Responsibilities of the Strategy and

the highest governance responsibility (decision-making level)

Sustainability Committee

overseeing ESG matters and providing top-level support for the

company’s sustainable development. Research sustainability matters (including

ESG) assess risks and impacts enhance

The Board’s key duties include setting ESG strategy ESG risk management and provide

monitoring implementation determining key ESG issues and recommendations to the Board.reviewing related reports. These tasks are carried out by the

Monitor key sustainability information assess

Strategy and Sustainability Committee according to the "Board ESG impacts on stakeholders oversee major

Strategy and Sustainability Committee Work Guidelines." safety and environmental risks and propose

measures to the Board.The Strategy and Sustainability Committee consists of three

directors elected by the shareholders with two non-independent Review sustainability policies strategies

directors and one independent director and is chaired by the goals and key issues and monitor

implementation in line with development goals.Board chairman reflecting the company's commitment to ESG.The chairman as the company's controller ensures risk Review social responsibility and ESG reports

prevention and compliance with internal control systems and report to the Board.safeguarding stakeholders' interests.FIRST 2024 ESG Report 14Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

The General Manager's Office as the management level is

responsible for formulating and executing ESG plans

integrating ESG risks into the risk management and internal The Board Office: As the core leader of the ESG

control system. It oversees ESG implementation evaluates Working Group plans coordinates and supervises

ESG activities across departments and organizes

overall ESG performance provides recommendations to the

and reports ESG-related issues and risks to the

Board and prepares ESG reports presenting updates to the General Manager's Office ensuring accurate

Board quarterly through production and management meeting. summary and timely disclosure of ESG information.Supply Chain Center: Maintains integrity with

The execution level consists of the ESG Working Group led by suppliers and partners promotes transparency

the Board Office. Group members include departments like the selects responsible suppliers and monitors their

ESG performance.Supply Chain Center Legal Affairs Internal Audit Finance

Legal Affairs Department: Ensures compliance with

three Business Divisions (including their Quality and EHS regulations and continuously enhances ESG

departments) Intellectual Property Information Technology performance.Engineering R&D Institute and Human Resources covering Internal Audit Department: Manages ESG risks

and controls ensuring accurate data collection.all aspects related to the company's daily management.Finance Center: Provides financial support for ESG

To enhance ESG practices and disclosure quality we have projects and monitors financial performance.established "Detailed Guidelines for the ESG Working Group" Business Divisions & their Quality/EHS Dept.:

Ensures compliance with environmental standards

which track ESG goals manage risks and handle carbon

monitors performance and provides training.emissions accounting. This collaborative structure ensures

IP Department: Protects innovations and promotes

effective ESG implementation and drives our sustainable sustainable technology development.development progress. IT Center: Supports ESG goals with technology

including carbon reduction and efficiency.We will continue improving our ESG practices strengthening

HR Center: Ensures labor law compliance

collaboration with professional organizations and learning from respects employee rights and fosters development.industry leaders.FIRST 2024 ESG Report 15Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

FIRST places great importance on ESG training. During the reporting year dedicated ESG training sessions and

multiple annual ESG meetings were organized covering department heads and ESG team members. The ESG team

leader provided in-depth explanations of FIRST s ESG vision and sustainability strategy shared industry best

practices clarified the ESG governance structure disclosure objectives and latest requirements and addressed key

ESG topics and concerns. These sessions strengthened participants understanding of ESG management and

practices enhanced awareness of sustainability and laid a solid foundation for achieving future ESG goals and

advancing the company s sustainable development strategy.Specialized ESG Trainings

Special Training on the "Sustainability (ESG) Report" for

Listed Companies

During the reporting period members of the Board Office

actively participated in the ESG training organized by the

Shanghai Stock Exchange for listed companies. They also

attended several ESG seminars and workshops hosted by

professional institutions. The training covered topics such as

ESG reporting frameworks strategies for enhancing corporate

ESG performance and best practices from leading new

energy companies.SA8000 Social Accountability Standard and

Greenhouse Gas (GHG) Verification Training

In 2024 we organized targeted professional training on the

SA8000 Social Accountability Standard and GHG emissions

verification. Professional institutions were invited to conduct

the training and knowledge-sharing sessions. The program

helped deepen our understanding of international social

responsibility standards and GHG emissions supporting the

implementation of SA8000 certification carbon accounting

and the development of scientific emission reduction

strategies. It also enhanced the ESG knowledge and

capabilities of both management and execution teams.Looking ahead we will continue to strengthen ESG training expand coverage and enhance communication and

collaboration within the ESG working group. We aim to further improve employees understanding and execution of

ESG-related initiatives. Meanwhile we will closely monitor industry trends and regulatory changes to refine our ESG

strategies and practices in a timely manner.FIRST 2024 ESG Report 16Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

In advancing sustainable development we prioritize engaging with stakeholders. We continuously refine the types and

methods of their involvement promptly collect and organize feedback from all parties and take responsive measures

to fulfill stakeholder cooperation and collectively enhance communication mechanisms. We actively listen to

stakeholders understanding their concerns and recognizing their reasonable expectations. Our goal is to grow

alongside our stakeholders through diverse communications.Main communication

Types of stakeholders Main demands Main response measures

methods

* Strengthen the core

* Consistent and stable

competitiveness of the business * Periodic reports and interim

return on investment

* Fulfill information disclosure announcements

* Understand the

obligations in a timely manner * Investors exchange events such

company's operations

* Improve internal control as performance presentations

* Sustainable development

management

* Improve employee recruitment

* Decent working conditions training promotion and other

* Workers' Congress

* Broad career development systems

* Learning and training activities

* Excellent compensation * Continue to optimize the

* Employee care activities

and benefits compensation and welfare system

* Notice board corporate website

* Perfect health and safety * Enrich staff activities

and WeChat public account

guarantee * Strengthen occupational health and

safety management

* Implement a customer-first

* Stable and safe product

business approach.* Competitively priced

* Strengthen the core * Customer service

products

competitiveness * Technical exchange

* Solve quality problems

* Continue to carry out R&D * Industry exhibition

quickly

innovation * New product launch

* Provide excellent

* Enhance our overall operational

customer service

efficiency.* Implement bidding procedures

* Establish a list of qualified suppliers

and conduct annual audits * Supplier conference

* Fair competition * Sign the integrity and self-discipline * Supplier annual audit

* Fulfill the contract on time letter * Integrity report platform

* Pay attention to suppliers'

demands

* Win-win cooperation

* Provide jobs and pay taxes

* Cooperate with government

* Drive the development of * Compliance operation

inspection work

local and surrounding * Pay taxes in accordance with law

* Improve internal compliance

industries * Government data reports

monitoring

* Operate legally and in * Government related meetings

* Ensure compliance with

compliance * Accept government scrutiny

environmental safety and integrity

laws and regulations

* Environmental protection

* Operate legally and in compliance * Community Meeting

* Energy conservation and

* Manage “three wastes” * Publish ESG report

emission reduction

* Promote lean production * Accept social supervision

* Good neighborliness

* Fulfill social responsibilities

* Public charity

FIRST 2024 ESG Report 17Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

Engage with investors customers suppliers government agencies and other stakeholders

Step 1:

Stakeholder through online surveys and in-depth interviews with senior management to gather their

Engagement perspectives and expectations. Key ESG topics of concern are recorded and consolidated.Step 2: In addition to the 21 sustainable development topics outlined in the Guidelines we identify further

Identification ESG topics based on stakeholder feedback ESG standards and ratings and industry hotspots.& Preliminary Topics with potential short- medium- and long-term financial materiality or significant impacts on

Screening the economy society or environment are collected to establish the 2024 topic pool.Based on the evaluation criteria and stakeholder feedback a double materiality assessment is

Step 3: conducted on the identified and preliminarily screened ESG issues. This assessment evaluates

Assessment

both the financial materiality and impact materiality in order to determine their actual and

potential effects as well as significant risks and opportunities.Similar ESG factors are categorized and topics are prioritized based on their financial materiality

Step 4: and impact materiality. A materiality matrix is developed to determine the priority ESG issues for

Prioritization

the year.Step 5: The Board’s Strategy and Sustainability Committee reviews and approves the material topics

Validation & and leads targeted disclosures including governance strategy metrics and opportunities related

Disclosure to core ESG topics while driving continuous improvement.*

Response to Climate Change Pollutant Emissions Waste

ESG SSE Guidelines No. 14 GRI Management Ecosystem and Biodiversity Protection

Standards and other ESG standards Environmental Compliance Management Energy

Utilization Water Resource Utilization Circular Economy

ESG MSCI Ratings CDP Chemical Safety Clean Technology Opportunities

Ratings Ratings etc

2024 ESG al Rural Revitalization Social Contribution Innovation-

Conventions UN SDGs etc.Topic Pool Driven Development Tech Ethics Supply Chain Security

Fair Treatment of SMEs Product and Service Safety and

Industry Hot topics in sectors like Quality Data Security and Customer Privacy Protection

Employees Intellectual Property Protection

Trends PV and PCB

Company Strategic and development

Strategy needs of the company Due Diligence Stakeholder Communication Anti-Bribery

and Anti-Corruption Fair Competition Corporate

Governance ESG Governance

*

Materiality

Criteria: Whether the topic has significant impact

Dimension

Does the topic have potential short- medium- or long-term impact on business models operations development

strategies financial status economic performance cash flow or cost of capital

Financial

* Alignment with financial materiality assessments in company reporting

Materiality

* Potential for significant financial risks or opportunities over different time horizons

* Likelihood of financial impact

Whether the company s performance on the topic may have significant impact on the economy society or the

environment

Impact * For actual negative impacts the evaluation is based on the severity of the impact (such as scale scope and

Materiality irreversibility).* For actual positive impacts the evaluation is based on the scale and scope of the impact (such as scale scope

and likelihood).* The likelihood of both negative and positive impacts occurring.FIRST 2024 ESG Report 18Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

*

We conducted quantitative analysis based

on stakeholder interview results as well as

input from internal financial experts and

other ESG specialists. The materiality

matrix was developed using twodimensions—“Financial Materiality to theCompany” (X-axis) and “ImpactMateriality on the Economy Society andEnvironment” (Y-axis)—to evaluate and

prioritize each topic as High Medium or

Low in importance.A total of 23 material topics were identified

among which 8 topics demonstrated high

significance in both dimensions.The materiality assessment results were

reviewed and approved by the Board

Strategy and Sustainability Committee

which also leads the targeted disclosure

and continuous improvement of key ESG

practices.Financial Materiality to the Company

High Material Topics Medium Material Topics Non-Material Topics

Response to Climate Data Security & Ecosystem and

2 Pollutant Emissions

Change Customer Privacy Protection Biodiversity Protection

11 Innovation-Driven

Waste Management Employees Rural Revitalization

Development

Environmental

13 Supply Chain Security Due Diligence Tech Ethics

Compliance Management

15 Product and Service Stakeholder

Energy Utilization

Safety and Quality Communication

20 Anti-Bribery and Anti- Water Resource

Fair Competition

Corruption Utilization

24 Intellectual Property

Circular Economy Chemical Safety

Protection

Clean Technology

25 Corporate Governance Social Contribution

Opportunities

Fair Treatment of

26 ESG Governance

SMEs

FIRST 2024 ESG Report 19

Impact Materiality on the Economy Society and EnvironmentResponse to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

We proactively manage sustainability risks and opportunities through robust assessment. These may affect our

business model operations finances and strategy across short medium and long-term horizons. By effectively

identifying and analyzing these factors we mitigate risks while capitalizing on opportunities to achieve our

sustainability objectives.Impact

Category Topic Impacts Risks and Opportunities Timeframe* Our Response

Pathway

Respons Opportunity: Driven by the "Dual Carbon" policy

Continue developing and launching

Environm e to the new energy market is expected to grow

Downstream Short-term PV encapsulation materials to fully

ent Climate significantly leading to increased sales of

meet downstream demand.Change photovoltaic (PV) products.Risk: The "Dual Carbon" related policy may Proactively conduct carbon

require increased use of clean energy potentially footprint assessments and product

Downstream Long-term

raising costs or causing order loss due to stricter carbon accounting with early

energy supervision. energy planning.Positive Impact: Supply PV products and build

Innovate and expand PV product

power generation projects to increase clean Business Medium-

lines to promote sustainable

energy use and reduce GHG emissions for both Operations term

development.the company and society.Focus on talent development and

Risk: With the expansion of domestic and

Employe Business recruitment and improve

Social overseas business demand for globally Short-term

es Operations compensation benefits and

professional talents continues to grow.employee incentive.Risk: Employees’ legal awareness is increasing

but due to complex information sources there is Strengthen employee education

Business

potential for misinterpretation of laws possibly Short-term and strictly comply with relevant

Operations

leading to more labor disputes and reputational laws regulations and policies.risks.Positive Impact: Provide professional skills and Continue to invest in employee

development training along with a sound work Business training and development

Short-term

and living environment to ensure safety and Operations providing good working and living

stable employment. conditions.Opportunity: By managing raw material price

Supply

fluctuations and optimizing procurement plans Formulate reasonable procurement

Social Chain Upstream Short-term

we can reduce costs and enhance plans for raw materials.Security

competitiveness.Make reasonable procurement

Risk: Raw material price fluctuations may

plans and make provision for

increase costs or cause impairment of inventory Upstream Short-term

impairment as needed in line with

value.accounting policies.Negative Impact: Failure to identify labor rights

Responsible sourcing of goods and

violations or unethical behavior in the supply

Upstream Short-term services signing Supplier Code of

chain could harm supplier employees' rights and

Conduct with suppliers.our interests.Diversify markets innovate and

Market - Risk: Slowing global economic growth may

Business coordinate supply chains to

Social Geopoliti weaken external demand and increase the risk of Short-term

Operations counter global demand drops and

cs trade protectionism.trade barriers.Risk: Geopolitical tensions may disrupt supply

Business Medium- Supply chain diversification and

chains increase business costs and cause

Operations term foreign exchange risk management.currency fluctuations.FIRST 2024 ESG Report 20Response to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

We identify and assess the significant economic social and environmental impacts across key stages of our value

chain including procurement production sales services internal management external investments and social

activities. Based on the characteristics of each stage we have developed an impact map to comprehensively

review and evaluate the potential positive (benefits) and negative (costs) impacts of our value chain activities. This

helps us better monitor prevent manage control and mitigate significant impacts and implement corresponding

measures.Positive Negative

Impacts Impacts

Supplier resource

Upstream Supply consumption GHG Water

Procurement chain value emission Utilization

Green Supplier Waste Pollutant

employee

procureme Management Emissions

employment

Supplier

Supply chain Occupational

employees/ Supplier product

social injury

business

responsibility sales

ethics

Company Taxes/Revenue

Operations dividends Production

consumption GHG Water

Increase emission Utilization

R & D

efficiency

Employee Waste Pollutant

Employee Training/ employment Management Emissions

care Salary

Occupational

Social Welfare/ injuryProducts sales

responsibility Rural

Customer Customer Circular Economy

Application value

Eco-friendly Efficient product

packaging application

Innovative

product All-around product

application

◆◆

◆◆

◆◆

FIRST 2024 ESG Report 21

indirect effect direct effect indirect effectResponse to UN Sustainable Development Goals ESG Governance Stakeholder Engagement

Materiality Assessment for ESG lssues Sustainability Risks and Opportunities Management Sustainability Metrics and Targets

Increase R&D Optimize production Adopt digital supplier Safeguard occupational Strengthen community

investment to develop processes improve management to embed health and rights engagement and

high-efficiency energy efficiency reduce sustainability principles foster equality and university partnerships

innovative products resource consumption and collaborate on diversity and cultivate leverage PV industry

contributing to clean and waste and promote creating an ethical globally competitive strengths to support

energy initiatives and circular economy green and sustainable talent with vulnerable groups and

dual carbon goals. practices to build a supply chain network. multidisciplinary drive social progress.sustainable ecosystem. expertise.We are committed to establishing a comprehensive environmental social and climate risk management system.We regularly monitor and manage the following key indicators to ensure transparency and accountability. These

metrics are continuously measured and disclosed annually:

* Comprehensive Energy

* Water Withdrawal * Recyclable Waste * GHG Emissions

Consumption

* Scope 1 Emissions

* Diesel Consumption * Water Use Intensity Volume

* Natural Gas * Scope 2 Emissions

* Waste Categorization

Consumption * GHG Emission Intensity

* Electricity Consumption

* Direct Energy

Consumption

* Indirect Energy

Consumption

* Clean Energy Usage

* Renewable Electricity

Usage Ratio

* Unit Consumption * Withdrawal and * Waste Disposal * Carbon accounting and

Reduction wastewater * Circular Economy Carbon Footprint

* Environmental management Targets Certification for Key

Compliance Products

FIRST 2024 ESG Report 22Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We have established a comprehensive ESG governance framework that fully incorporates climate change

governance. By integrating climate-related functions into our ESG governance structure we ensure systematic

monitoring and management of climate-related risks and opportunities with clearly defined responsibilities at

decision-making management and implementation levels forming an effective top-down climate governance

system.The highest governance and decision-making body for climate change work where

Decision- Board Strategy and the Strategy and Sustainability Committee reviews and approves climate-related

Making Sustainability Committee policies material topics strategic plans targets implementation progress as well

as associated risks and opportunities.Responsible for formulating and implementing climate-related strategies targets

and measures; assessing and managing climate-related risks and opportunities;

The General

monitoring progress against climate targets; and engaging stakeholders on

Management Manager's Office

climate issues. Monthly reports are submitted to the Board through office

meetings.Cross-departmental collaboration to execute climate-related ESG strategies and

The ESG Working actions achieve targets and metrics conduct awareness campaigns at Execution

Group operational sites and regularly report climate-related operational updates to the

General Manager’s Office.We fully recognize the profound and complex impacts of climate change on human society and natural ecosystems.Climate-related risks and opportunities exhibit intricate systemic linkages. For instance global climate policies and

extreme weather events may threaten economic stability and business operations while simultaneously creating

opportunities for technological innovation and green transformation. Against this backdrop global low-carbon

transition is imperative and we treat climate change as a core strategic priority committed to mitigating its adverse

effects through business practices.We closely track domestic and international climate policies actively responding to national strategic goals such as

the "Carbon Peak Action Plan Before 2030." Since 2024 we have initiated corporate-wide carbon accounting to

systematize and refine climate work. By establishing a robust carbon management system we aim to achieve

emission reduction targets and lay the foundation for carbon neutrality. We steadfastly advance our "SOLAR FOR

SOLAR—Negative Carbon Earth" sustainability vision implementing energy conservation renewable energy

adoption and energy structure optimization across operations. As an active player in renewable energy we

continuously develop innovative technologies and green products to accelerate industry-wide sustainable transition.We have identified and assessed two categories of climate-related risks and opportunities: (1) Transition risks

associated with low-carbon economy shifts (policy/legal technological market reputational risks); and (2) Physical

risks from climate impacts (acute risks like extreme weather and chronic risks like long-term climate pattern shifts).Addressing climate change is not only about risk management but also seizing development opportunities.We are

committed to driving the global energy transition by enhancing our climate risk management improving disclosure

transparency advancing green technology innovation developing sustainable low-carbon solutions and supporting

worldwide climate governance to achieve sustainable development goals.FIRST 2024 ESG Report 24Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

Transition Risks/

Type Description Mitigation Measures Time Horizon Level

Opportunities

Increased costs for Establish carbon data

Risk: Climate

Policy & carbon data collection management system; disclose Medium-to-

disclosure Low

Legal third-party verification climate targets/progress in ESG long term

requirements

and policy monitoring reports per regulations

Conduct carbon accounting and

Stricter GHG

Risk: Mandatory verification; set reduction

Policy & emission/renewable

renewable energy targets; plan renewable energy Long term Medium

Legal energy requirements may

use adoption; implement low-carbon

be imposed

operations

Suppliers' climate-related

Optimize low-carbon supply

operational cost

Risk: Rising raw chain; enhance resilience; Medium-to-

Market increases may elevate Medium

material costs collaborate with partners on long term

FIRST's procurement

emission reductions

expenses

Expand PV encapsulation

Market shift toward materials production; align with

Opportunity: Growing renewables boosts "Focus on the main PV Medium-to-

Market High

clean energy demanddemand for photovoltaic business and vigorously long term

products develop other new material

industries" strategy

Higher R&D costs for

Increase low carbon tech

Risk: Low-carbon energy-efficient Medium-to-

Technology investment; analyze trends; High

tech upgrades technologies; need to long term

maintain competitive edge

track industry innovations

Risk: Stakeholder

Failure to meet climate Regular stakeholder

dissatisfaction with

Reputation action expectations may engagement; transparent Long term Low

climate-related

damage reputation disclosures (e.g. ESG reports)

actions

Physical Risks/

Type Description Mitigation Measures Time Horizon Level

Opportunities

Production disruptions

Upgrade equipment; implement

Risk: Extreme weather asset/employee losses Short-to-

Acute emergency protocols; enhance Low

(storms typhoons) and supply chain medium term

weather resilience

instability

Rising temperatures

Improve energy management;

Risk: Climate pattern increase cooling/heating

deploy renewable/energy-

Chronic shifts (heatwaves/cold costs and impact Long term Low

efficient devices; strengthen

snaps) employee health and

worker protections

productivity

FIRST 2024 ESG Report 25Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We have established a climate-related risk and opportunity identification assessment and management process.This systematically identifies and evaluates material climate change risks and opportunities develops targeted

mitigation measures and action plans and integrates climate risk management into the cross-departmental risk

management framework. Through standardized procedures the General Manager s Office reports monthly to the

Board on climate-related matters while the Strategy and Sustainability Committee conducts regular reviews.Management strategies are dynamically adjusted in response to internal/external changes and business plan

updates ensuring deep integration of risk management with corporate strategy to address climate challenges and

advance sustainability goals.

1234

Determine boundaries Preliminarily identify Systematically Assess impact

by considering risk/opportunity screen related timelines and

products operational categories based on climate materiality levels per

scope and value chain CDP questionnaires risks/opportunities TCFD framework

with periodic reviews to SSE Guidelines No. 14 affecting operations through internal

adapt to changes. industry trends and and value chain surveys and industry

societal factors. partners. research.

765

Regularly disclose Monthly Board reporting Business divisions and

climate risk/opportunity with Strategy and their departments develop

identification Sustainability Committee tailored response

assessment and reviews of key climate strategies aligned with

management progress. items. operational characteristics.FIRST 2024 ESG Report 26Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

In addressing climate change challenges we closely monitor evolving domestic and international regulations and

have established short- medium- and long-term carbon emission reduction targets tailored to our operations. We

have implemented proactive measures to identify quantify and disclose environmental social and climate-related

metrics including conducting carbon accounting for all domestic and international subsidiaries under our

operational control. These efforts demonstrate our steadfast commitment to sustainable development.In 2024 we conducted detailed statistics and identification of both direct and

indirect carbon emissions covering our production and operations compiled

a carbon inventory and performed carbon accounting for our parent

company as well as all domestic and foreign subsidiaries under our

operational control in accordance with The Greenhouse Gas Protocol - A

Corporate Accounting and Reporting Standard and ISO 14064-1:2018

(Greenhouse gases - Part 1: Specification with guidance at the organization

level for quantification and reporting of greenhouse gas emissions and

removals).Simultaneously we engaged a third-party institution to conduct independent

verification of our Scope 1 and Scope 2 greenhouse gas data following ISO

14064-3:2019 (Greenhouse gases - Part 3: Specification with guidance for

the verification and validation of greenhouse gas statements) which issued

the Verification Statement of GHG Emissions.FIRST 2024 ESG Report 27Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

FIRST 2024 Greenhouse Gas Emissions

Emission Category Unit Data

Total GHG Emissions tCO?e 305024

By Scope Classification

Scope 1* Emissions tCO?e 7952

Scope 2* Emissions tCO?e 297072

GHG Emission Intensity tCO?e/10k RMB Revenue 0.1593

Scope 1 Emissions refer to greenhouse gas emissions from sources directly owned or controlled by the company

corresponding to "direct greenhouse gas emissions" as defined in ISO 14064-1:2018.Scope 2 Emissions represent greenhouse gas emissions generated from purchased electricity and heat energy aligning with

"indirect greenhouse gas emissions from imported energy" under ISO 14064-1:2018.FIRST 2024 ESG Report 28Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

To actively respond to the national "Dual Carbon" goals and practice the green and low-carbon

development philosophy we have continued to advance carbon emission management and conducted

carbon footprint certification for our key products. During the reporting period based on the standards

issued by the International Organization for Standardization (ISO) - "ISO 14040:2006 Environmental

management - Life cycle assessment - Principles and framework" "ISO 14044:2006 Environmental

management - Life cycle assessment - Requirements and guidelines" and "ISO 14067:2018

Greenhouse gases - Carbon footprint of products" we systematically calculated and assessed the

carbon footprint throughout the product lifecycle of our main products and successfully obtained Product

Carbon Footprint Verification Statements issued by an authoritative third-party institution. Through

carbon footprint certification we have comprehensively grasped the carbon emission data from raw

material acquisition to production processes identified emission reduction potential and provided a

scientific basis for subsequent optimization of production processes and reduction of carbon emission

intensity.In the future we will continue to deepen carbon footprint management promote green transformation of

the supply chain explore more low-carbon technology applications and strive to achieve carbon

neutrality throughout the entire product lifecycle contributing corporate strength to addressing climate

change.FIRST 2024 ESG Report 29Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

Photovoltaic Business

As a dedicated player in the green energy sector FIRST specializes in manufacturing photovoltaic (PV)

encapsulant films and backsheets – critical components that protect and enhance PV modules' efficiency

and lifespan. Through continuous technological innovation and cost optimization we deliver high-

performance solutions that empower PV module manufacturers to improve cost-efficiency strengthen

solar energy's market competitiveness and accelerate the transition to a clean low-carbon energy

ecosystem thereby supporting ecological conservation and environmental stewardship.In 2024 FIRST sold 2.811 billion square meters of PV encapsulant materials enabling 296GW of module

production. Based on coal-power equivalency these modules will reduce approximately 295 million tons

of carbon dioxide emissions.Power Generation Operations

Leveraging our PV industrial expertise FIRST has deployed distributed PV systems across eligible factory

rooftops. Through our wholly-owned subsidiary ZHEJIANG FIRST NEW ENERGY DEVELOPMENT CO.LTD. and its subsidiaries we have developed ground-mounted and distributed PV projects in Hangzhou

Jiangshan Beijing and other regions embodying our "Solar for Solar" sustainability vision.As of the end of 2024 we owned 19.99MW of self-operated photovoltaic power generation systems and

developed/externally held 27.15MW of PV systems. Based on coal-power equivalency calculations these

solar power installations collectively reduced approximately 56400 tons of carbon dioxide emissions.FIRST 2024 ESG Report 30Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

FIRST attaches great importance to environmental protection work strictly complies with laws and regulations

including the Environmental Protection Law of the People's Republic of China the Environmental Impact

Assessment Law of the People's Republic of China and the Noise Pollution Prevention and Control Law of the

People's Republic of China comprehensively builds an environmental protection management system and

establishes the Environmental Protection Management Responsibility System to implement corporate responsibility.The company has established a three-level environmental management structure of "headquarters - all bases - base

EHS departments" clarifying the work responsibilities of departments at all levels. The headquarters is responsible

for reviewing and making major environmental protection decisions while supervising the implementation of

environmental protection work. Each base and its EHS dept. are responsible for implementing and supervising

specific environmental protection work at the base.The company strengthens the construction of environmental protection facilities effectively controls the compliant

discharge and disposal of pollutants such as waste gas wastewater and waste residue. The company has

formulated emergency plans for environmental incidents providing clear guidance for the prevention preparation

emergency response and post-disaster recovery of sudden environmental pollution incidents.The company has systematically established a monthly EHS reporting mechanism

regularly compiling and issuing Safety Monthly Reports which include: 1. special

analysis of environmental incidents; 2. highlight environmental protection work of

subsidiaries.Through this normalized information reporting mechanism transparent

management of environmental risks is achieved promoting experience sharing

among subsidiaries and continuous improvement of environmental protection

performance.As of the end of the reporting period 100% of the company's production bases have obtained ISO14001

environmental management system certification. We have established an internal performance evaluation system

related to the environment. In 2024 annual environmental audits were conducted for subsidiaries to improve

environmental performance. To ensure continuous compliance with ISO14001 we will continue to strengthen our

internal and follow-up audit work and improve our internal processes.In 2024 the company did not receive any administrative penalties from ecological environment authorities due to

environmental incidents.System Name Coverage of Producing Subsidiaries in the Group

ISO14001 Environmental Management System 100%

FIRST 2024 ESG Report 31Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

FIRST has formulated the Emergency Response Plan for Sudden Environmental Incidents in accordance with

regulatory requirements including the Measures for the Administration of Emergency Response to Sudden

Environmental Incidents establishing a systematic and comprehensive emergency management system. The

company strengthens environmental risk management through three key dimensions: Mechanism Development:

Established a closed-loop management system integrating "prevention-warning-response-recovery" with clear

operational procedures defined for each phase.Organizational Structure: Implemented a tiered emergency command

system specifying authority divisions among decision-making execution and support levels.Implementation

Safeguards: Standardized twelve core procedures including monitoring & warning emergency response and post-

incident disposal supported by material reserves team training and contingency drills. Through quantified response

classification criteria and scenario-specific disposal plans standardized and procedural management of

environmental emergencies has been achieved.All production bases have developed and regularly update refine and conduct drills for their respective Emergency

Response Plans for Sudden Environmental Incidents.In April 2024 Jiaxing Company conducted a hazardous chemical leakage drill

simulating pipeline connection loosening during filling operations. Personnel

followed protocol by wearing protective gear and using specialized tools to

contain the leak preventing environmental contamination through stormwater

drainage systems.In August 2024 Hangzhou Company executed an air pollution emergency drill

simulating exhaust gas leakage due to equipment failure thereby enhancing

emergency response capabilities for emission control system malfunctions.In October 2024 Electrical Materials Company organized a hazardous waste

leakage drill significantly improving staff preparedness and response awareness

for such incidents.In December 2024 Anji Company performed a drill for pH exceedance at

wastewater discharge outlets validating the effectiveness of emergency

procedures and strengthening abnormal discharge response capabilities.Environmental Compliance

2024 Target 2024 Achievement

Metrics & Targets

Zero environmental accidents zero Achieved: No environmental incidents

"Two Zeros"

administrative penalties or penalties in 2024

Control neighborhood complaints to

Achieved: Zero neighborhood

"Two Controls" ≤4 annually 100% complaint

complaints in 2024

resolution rate

FIRST 2024 ESG Report 32Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We have always placed great emphasis on environmental protection. In recent years we have consistently increased

our investment in environmental protection to upgrade facilities optimize production processes promote the

application of green energy and reduce carbon emissions. These initiatives not only reflect our commitment to

environmental responsibility but also lay a solid foundation for achieving green development goals.In 2024 clean technology products (photovoltaic materials) accounted for 94.59% of our total revenue.Year 2024 2023 2022

Environmental Protection

8153.056861.083618.74

Investment (10000 RMB)

All our production facilities have undergone environmental impact assessments. Research indicates that all

manufacturing bases are located within government-designated industrial zones and none are situated in areas

officially classified as ecologically sensitive. We maintain full compliance with all applicable environmental laws and

regulations in our operations.Going forward we will implement ongoing monitoring of biodiversity risk management

and provide periodic reporting on our conservation efforts and progress.FIRST 2024 ESG Report 33Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

The company has established a multi-level comprehensive energy management framework to systematically

advance energy management and energy conservation efforts. At the corporate level the FIRST Energy

Management Leadership Group consolidates energy data from all production bases formulates company-wide

energy-saving policies and goals and provides strategic guidance for overall energy management. At the production

base level each base has its own Energy Management Leadership Group adopting a three-tier management

structure of Leader Deputy Leader and Members with clearly defined responsibilities: The Leader is responsible for

setting the base’s energy-saving policies and goals and overseeing energy conservation management. The

Deputy Leader assists the Leader leads the implementation of energy-saving technological upgrades technical

initiatives and annual energy-saving plans and promotes new technologies and processes. The Members

composed of production workshop supervisors and office directors are responsible for executing energy-saving

plans monitoring energy usage and improving energy efficiency through measures such as establishing regulations

and assigning detailed targets to teams or individuals.Additionally each base is equipped with Energy Management Officers and Measurement Management Officers to

support the implementation of specific tasks. Through this structure the company has achieved systematic and

refined energy management providing a solid foundation for meeting energy conservation and efficiency goals.We have established systematic energy management policies aimed at optimizing energy allocation and utilization

efficiency reducing waste minimizing environmental impact and advancing energy conservation objectives. The

Energy Management Policy defines the organizational structure and responsibilities for energy management and

measurement covering the use measurement statistical analysis and cost management of electricity water

natural gas and other energy sources. It applies to all departments with the core objective of energy conservation.The Energy Conservation and Efficiency Policy specifies the roles of the Energy Management Group Leader Deputy

Leader and Members to ensure orderly and effective implementation of energy-saving initiatives. The Energy

Measurement Objectives Policy outlines the selection and retirement criteria for energy measurement instruments. It

requires regular technical and economic analysis of energy usage for major equipment and public systems

combining testing and statistical analysis to identify energy-saving potential and improvement directions thereby

providing a scientific basis for optimizing energy management and technological upgrades. Through these policies

we have built a robust energy management system offering institutional support for achieving high-efficiency energy

utilization and sustainable development goals.FIRST 2024 ESG Report 34Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

The company has established a digital platform to enable real-time monitoring of energy consumption and historical

data traceability analysis providing precise data support for energy management. Monthly Energy Statistical

Reports and Energy Analysis Reports are compiled to optimize energy efficiency through data insights continuously

advancing energy management and energy conservation goals.Indicator Unit 2024 Data

Basic Energy Usage

Total Energy Consumption* tce (tonnes of standard coal equivalent) 74658.5

By Energy Type

Diesel* liters 123423.5

Natural Gas m3 1955545.0

Electricity MWh 578372.1

Direct Energy Consumption tce 2877.4

Indirect Energy Consumption tce 71781.0

Energy Intensity tce/10000 RMB (revenue) 0.0390

Clean Energy Usage

Clean Energy Consumption MWh 24613.5

By Energy Type

Solar Power MWh 24613.5

Renewable Electricity (Solar) Usage Ratio % 4.26

*The conversion of different energy types into standard coal equivalent follows GB/T 2589-2020 General Principles for

Comprehensive Energy Consumption Calculation.*Diesel volume-to-mass conversion in this report is based on a standard density value of 0.835 kg/L.Against the global backdrop of advancing "carbon peak" and "carbon neutrality" goals

photovoltaic (PV) power generation as a key component of new energy will play a

significant role in future power systems. In 2024 we invested over 9 million RMB to

launch four new PV projects across multiple company bases including capacity

expansion of existing projects PV-covered parking lots and rooftop installations on

dormitory buildings. Currently six production bases have implemented distributed PV

systems achieving self-consumption with surplus electricity fed into the grid. In 2025

we plan to add three additional rooftop distributed PV projects at factory buildings

further increasing the proportion of renewable energy usage to support the green and

low-carbon transition.FIRST 2024 ESG Report 35Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We have been actively implementing diverse innovative energy-saving measures in energy management and

retrofits to enhance efficiency and reduce operational costs. Through process optimization energy-saving retrofits of

production equipment and peripheral facilities and optimized equipment usage strategies we have achieved

significant energy savings and efficiency improvements.Energy-saving

Energy-saving Results

Project

Cooling towers are typically designed with 1.1–1.2 times redundancy. By optimizing

Cooling Tower Excess

operational strategies—such as variable frequency drives for fans and demand-based

Capacity Utilization

activation of cooling towers—we effectively reduced unnecessary energy consumption.Through cross-business resource coordination steam generated from electronic

Cross-business Steam materials production is redirected to functional film production. In 2024 steam reuse

Synergy and Reuse reached 730.9 m3 lowering steam treatment costs for electronic materials while providing

a stable steam supply for functional film production.Distributed PV stations were installed on workshop rooftops. To address power

Power Distribution and generation fluctuations and demand variability we introduced energy storage systems for

Energy Storage "peak shaving and valley filling" stabilizing grid fluctuations while capitalizing on peak/off-

peak electricity price differentials.Our RTO incineration system achieves efficient waste heat recovery repurposing heat for

RTO Waste Heat power generation winter workshop temperature regulation and steam production for

Utilization photosensitive dry film drying. Condensate from steam is recycled to boilers creating a

closed-loop system that enhances energy efficiency.Freezers were retrofitted with online ball cleaning systems to maintain condenser tube

Online Ball Cleaning

cleanliness ensuring optimal heat exchange performance reducing electricity

System

consumption and improving energy efficiency.For high-temperature production zones we restricted air conditioning usage and instead

optimized fresh air circulation with chilled air blowers. In AC-cooled areas we enhanced

Cooling Optimization

duct sealing/insulation inspections installed magnetic AC curtains implemented stepwise

and Control Measures

temperature control within continuous cooling spaces and set strict temperature limits to

improve efficiency and thermal management.We attach great importance to fostering an energy-saving culture through diversified awareness initiatives. For

departments with unquantifiable targets we implement all-staff energy-saving actions via QCC activities. For

quantifiable targets we enforce energy-saving responsibility agreements. Our systematic approach includes: hosting

campaign launches to clarify objectives designing promotional posters and conducting training on energy-saving

practices. These measures have effectively enhanced employee awareness and embedded conservation concepts

into daily operations supporting sustainable development.FIRST 2024 ESG Report 36Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We have established a systematic energy performance evaluation system incorporating energy consumption

indicators into multi-level performance assessments to drive energy conservation goals. Key measures include:

Integrating energy consumption into KPI evaluations. For PV bases with higher energy demands

establishing inter-base benchmarking mechanisms and implementing "Energy Conservation

Corporate Level

Responsibility System" initiatives with phased targets

Incorporating energy metrics into monthly performance evaluations for major energy-consuming

Base departments with annual target updates. For departments with unquantifiable targets (e.g.Level Quality Administration) organizing "Energy Conservation QCC" activities to institutionalize

measures through incentive programs

Assigning the Equipment Department to oversee daily energy management and technological

Equipment

innovations. Linking conservation targets directly to performance evaluations for "Energy

Management

Level Management Positions" "Utility System Engineers" "Utility Teams" and "Equipment Retrofit

Engineers" to ensure accountability

This multi-tiered evaluation system effectively advances the company's energy objectives and enhances

management standards.Energy Management

2024 Targets 2024 Achievements

Metrics and Targets

Hangzhou Base: Film Workshop met

"baseline"; Mixing Workshop achieved

"outstanding"

For all production units:

Chuzhou Base: Film Workshop met

3% reduction (baseline) "achieved"; Mixing Workshop reached

"outstanding"

5% (achieved)

Energy Intensity

7% (excellent) Suzhou Base: Film Workshop met

9% (outstanding) "baseline"; Mixing Workshop attained

"excellent"

relative to prior-year levels.Jiaxing Base: Film Workshop met

"achieved"; Mixing Workshop reached

"excellent"

FIRST 2024 ESG Report 37Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We place high importance on water resource management strictly complying with laws and regulations such as the

Environmental Protection Law of the People's Republic of China and the Water Pollution Prevention and Control Law

of the People's Republic of China as well as relevant discharge standards. We systematically promote efficient water

utilization and wastewater discharge control through water intake management and wastewater management.We have established the Energy Management System to systematically advance water conservation and optimize

water resource utilization through water balance testing and expert review. We have comprehensively mapped

internal water usage identified inefficiencies improved water metering systems and implemented targeted water

management optimizations. The company actively encourages the adoption of water-saving technologies to enhance

production water efficiency. Regular water conservation training and awareness campaigns are conducted to embed

conservation practices into daily operations.We categorize wastewater into industrial production wastewater and domestic sewage applying differentiated

treatment approaches. Industrial wastewater primarily originates from production line cooling equipment cleaning

and floor washing. Recyclable wastewater is fully reused while non-recyclable wastewater is treated to meet

standards before discharge. Domestic sewage is discharged through municipal sewer systems.We have implemented a comprehensive water quality monitoring and control system focusing on:

Three-tier Monitoring Conducting high-frequency multi-point water quality testing at wastewater station inlets

Mechanism process stages and final discharge points (covering COD ammonia nitrogen etc.).Maintaining performance parameter logs for critical equipment (pump efficiency aeration

Equipment Health

volume chemical dosing accuracy) and executing preventive maintenance (monthly

Management

performance assessments + quarterly deep maintenance).Triggering three-tier alerts for abnormal data (on-site inspection - process adjustment -

Discharge Risk

expert consultation) with rectifications documented in the Environmental Facility

Closure

Performance Evaluation Report.The company prioritizes risk management in water resource utilization ensuring sustainable management through

systematic assessment and planning. We continuously monitor regional water risks and maintain robust prevention

mechanisms covering water supply security usage coordination and quality protection while promoting wastewater

reuse to minimize environmental and operational impacts.Risk Description Mitigation Measures Level

Local potential supply * Conduct water resource surveys to inform scientific usage

Water

shortages affecting planning Low

Shortage

operations * Collaborate with local governments on equitable allocation

Local

Operations may strain * Establish community communication channels Relatively

Water

regional water supplies * Implement CSR projects to improve local water efficiency Low

Conflicts

* Deploy professional treatment equipment to ensure

Improper wastewater

compliant discharge

Water management may

* Implement regular monitoring to preempt pollution incidents Low

Pollution contaminate nearby

* Enhance internal wastewater reuse to reduce discharge

water bodies

volumes

FIRST 2024 ESG Report 38Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

To address high water consumption in cooling tower open circulating water systems the

company has implemented measures including softened water replenishment optimized

conductivity control and concentration ratio management. These initiatives effectively reduce

calcium/magnesium scaling and microbial/algal growth significantly decreasing blowdown

water volume while extending intervals between heat exchanger and condenser cleanings

thereby enhancing water utilization efficiency.The company has innovatively developed white water recycling equipment that efficiently filters

fiber-containing secondary white water to meet cleaning standards for direct reuse in felt

washing processes. This technology saves 500 tons of water daily while substantially reducing

wastewater discharge achieving efficient water resource cycling.Leveraging polymer material R&D capabilities we have developed a series of membrane

support fabrics for water purification with customizable weight thickness and breathability

specifications. These materials enable production of reverse osmosis nanofiltration

ultrafiltration and microfiltration membranes widely applied in seawater desalination industrial

pure water production municipal/industrial wastewater treatment and household purification -

fundamentally advancing water resource utilization and protection.

2024 Water Usage Data

Total Water Consumption 1185641 tons

Water Use Intensity 0.6192 tons/million RMB revenue

FIRST 2024 ESG Report 39Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We strictly comply with environmental regulations including the Environmental Protection Law of the People's

Republic of China Air Pollution Prevention and Control Law Water Pollution Prevention and Control Law and Solid

Waste Pollution Environment Prevention Law. Internally we have established the Environmental Protection

Responsibility System Environmental/Safety Operation Control Procedures and Hazardous Chemicals

Management System implementing waste discharge monitoring plans and targets to strengthen waste management

and enhance pollution prevention.Our operations fully adhere to the Solid Waste Pollution Environment Prevention Law and related environmental

standards. We have implemented a categorized waste management system with full-process environmental risk

controls:

Standardized Disposal Process

Conduct source segregation for 21 sub-categories across 5 major hazardous waste

Waste types (including spent activated carbon waste coating liquid waste mineral oils

Generation [lubricants/heat transfer fluids] used PPE and HW49 packaging containers) using

specialized sealed containers for collection.Maintain dedicated hazardous waste storage facilities compliant with GB18597

standards implementing specialized personnel management. Storage areas equipped

Storage

with leak-proof pallets collection pits and fire emergency devices. Electronic tracking

Management

system records real-time data on generation storage and transfer of each waste

batch.Submit annual management plans via provincial solid waste management platform.Transfer &

Entrust licensed contractors (holding Hazardous Waste Operation Licenses) for

Disposal

disposal. Strictly implement manifest system achieving 100% compliance rate in 2024.Full-process Supervision Mechanism

Established supplier ESG evaluation system conducting triple verification of

Qualification

contractors' technical capabilities (including approved EIA disposal methods) and

Review

transportation qualifications (Dangerous Goods Transport Licenses).Implement methods such as vehicle trajectory tracking disposal video documentation

Process

and periodic on-site audits to ensure end-to-end traceability from facility to final

Traceability

treatment.FIRST 2024 ESG Report 40Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

All production bases have established sorting stations to classify and process waste

Recyclable metals plastics (PP/PE) cardboard wood and production scraps. After compaction

Waste these materials are sent to recycling enterprises achieving a recycling rate exceeding

95%.

Other Non-recyclable packaging materials and industrial waste are collected separately and

General sent to municipal-designated facilities for safe disposal. Domestic waste is sorted and

Solid Waste incorporated into urban sanitation systems with daily scheduled collection.Annual training on industrial solid waste (including hazardous waste) management ensures proper classification

and disposal

ISO 14001 Environmental Management System certified with established emergency response plans for

environmental incidents

Pollutant Emission Indicators 2024

Annual NOx Emissions (tons) 42.10

Annual SOx Emissions (tons) 1.08

Annual VOC Emissions (tons) 35.79

Annual PM Emissions (tons) 1.60

Annual COD Emissions (tons) 25.88

Annual Ammonia Nitrogen Emissions (tons) 1.34

Annual Total Nitrogen Emissions (tons) 13.05

Waste Discharge Indicators 2024

Total Hazardous Waste Generated (tons) 2251.70

Total Non-Hazardous Waste Generated (tons) 22569.14

FIRST 2024 ESG Report 41Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

* Management System: Wastewater Management Regulations

* Emission Types: Industrial wastewater domestic sewage

* Testing Parameters: pH ammonia nitrogen chemical oxygen demand (COD) total nitrogen

suspended solids five-day biochemical oxygen demand (BOD5) total phosphorus

adsorbable organic halogens (AOX) total organic carbon (TOC)

Wastewater * Pollution Control Facilities: Industrial wastewater treatment station septic tanks

* Treatment Method: Industrial wastewater undergoes pretreatment at plant wastewater

station to meet standards before municipal treatment; domestic sewage is discharged into

municipal network after septic tank treatment

* Management System: Waste Gas Management Regulations

* Emission Types: Canteen fumes workshop exhaust

* Testing Parameters: Oil fumes non-methane total hydrocarbons (NMHC) particulate matter

(PM) total suspended particulates (TSP) odor concentration smoke blackness nitrogen

oxides (NOx) sulfur dioxide (SO2)

Waste Gas * Pollution Control Facilities: Water scrubbers dry filters microwave catalytic devices

activated carbon adsorption units regenerative thermal oxidizers (RTO) canteen fume

purifiers

* Treatment Method: Treated through exhaust gas control systems for compliant emissions

* Management System: Hazardous Waste (Solid Waste) Management Regulations

* Emission Types: Used PPE waste containers spent activated carbon dry film scraps waste

coating liquids laboratory waste waste mineral oils biochemical sludge etc.Hazardous * Pollution Control Facilities: Hazardous waste storage warehouse

Waste

* Treatment Method: Processed by licensed contractors

* Management System: Hazardous Waste (Solid Waste) Management Regulations

* Emission Types: Wood scraps paper tubes cardboard plastics metal scraps packing

straps insulation wool air hoses labels domestic waste food waste etc.* Pollution Control Facilities: General industrial solid waste storage warehouse

General

Industrial * Treatment Method: Recyclables processed by licensed recycling companies; non-

Solid Waste recyclables handled by municipal sanitation departments in compliance with environmental

requirements

FIRST 2024 ESG Report 42Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We place high importance on the risk management of emissions and waste having established a comprehensive

environmental management system to ensure that waste treatment and emission activities comply with relevant legal

and regulatory requirements. We actively identify risks associated with emissions and waste analyze and develop

corresponding mitigation measures. Through strict waste classification recycling and disposal processes we minimize

environmental impact continuously reduce environmental risks and provide a solid foundation for achieving sustainable

development goals.Risk Risk Description Mitigation Measures Level

* Classify and reduce waste at the source

During production and manufacturing

prioritizing non-toxic and low-pollution production

Environmental solid waste and gas emissions are

materials.pressure from generated. Improper handling of such Low

* Adopt environmentally friendly materials and

waste disposal waste may impact surrounding

processes and enhance the development of

ecosystems and communities.waste resource utilization technologies.Hazardous waste generated during

* Collaborate with qualified third-party disposal

Compliance risks production and manufacturing must

agencies and strictly document waste flows.from improper be handled in accordance with

* Establish a comprehensive hazardous waste Low

hazardous waste regulations. Non-compliance with

management system and conduct employee

disposal environmental laws may result in legal

compliance training.action and substantial fines.Resource waste Failure to classify solid waste * Implement source classification by providing

due to generated during production may lead separate containers for different types of waste.inadequate to loss of recyclable resources * Launch waste resource utilization projects and Low

waste increasing disposal costs and partner with upstream and downstream circular

classification environmental burdens. economy enterprises.Emissions and

2024 Management Targets 2024 Achievements

Waste

100% compliance rate for hazardous waste Achieved: 100% compliance rate for

Hazardous Waste

treatment hazardous waste treatment

Waste Achieved: 100% waste classification and

100% waste classification and disposal rate

Classification disposal rate

Compliance with the "Emission Standard of

Achieved: 100% compliance rate for

Exhaust Gas Pollutants for Synthetic Resin Industry" (GB31572-

exhaust gas emission standards

2015)

Compliance with the standards in the access

permit/"Discharge Standard of Pollutants for Achieved: 100% compliance rate for

Wastewater

Municipal Wastewater Treatment Plants" industrial wastewater discharge standards

(GB18918-2002) Level A

Compliance with the "Emission Standard for

Industrial Enterprises Noise at Boundary" Achieved: 100% compliance rate for noise

Noise

(GB12348-2008) Class 2 standards with the control standards

eastern boundary meeting Class 4 limits

FIRST 2024 ESG Report 43Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We place high importance on circular economy practices. In 2021 the Materials Management Department was

established to oversee the recycling of auxiliary materials. Starting with the Hangzhou base dedicated recycling and

cleaning teams were set up gradually expanding to domestic bases in Chuzhou Jiaxing Suzhou and others. In

2024 the recycling initiative was launched at the Thailand base. Initially the company focused on comprehensive

recycling partnerships with large and medium-sized clients later extending coverage to medium-sized clients. For

clients with lower recycling rates tailored solutions were implemented significantly improving recycling rates by 40–

50 percentage points. Through close collaboration with clients we continuously enhances auxiliary material recycling

efficiency achieving cost reduction and operational efficiency goals.To standardize recycling processes we have established robust internal management systems including:

Standardized Documentation for Handling Client-Side Cleaning Workshop Exceptions Regulations for Client-Side

Auxiliary Material Vehicle Arrangement Processes and recycling and cleaning standards for various auxiliary

materials (e.g. wooden liners paper tubes wooden pallets plastic tubes). Regular training is provided to cleaning

teams and relevant departments to ensure efficient and compliant recycling operations.In addition the company actively explores innovative circular economy models. Through the adoption of sustainable

packaging solutions such as recyclable iron racks and innovative measures like the scheme of using cartons to

replace paper tubes we reduce resource consumption and waste generation at the source. It maximizes the

recycling of resources further promotes the construction of the company's green value chain and provides strong

support for the realization of the circular economy goals.In 2024 the company achieved significant year-on-year growth in recycling volumes with plastic tube recycling

increasing by 511000 units paper tubes by 429000 units wooden liners by 1736000 units and plastic pallets by

399000 units. These results reflect the company's ongoing progress and efficient management in resource circularity.

Auxiliary Material 2024 Recycled Volume 2024 Recycling Rate 2023 Recycled Volume 2023 Recycling Rate

Plastic tubes 2.608 million 102.41% 2.097 million 100.80%

Paper tubes 1.964 million 88.37% 1.535 million 91.16%

wooden liners 8.438 million 94.17% 6.702 million 95.12%

Wooden pallets 1.280 million 88.81% 1.337 million 93.71%

Plastic pallets 806000 103.23% 407000 110.35%

Our Jiaxing facility commenced pilot testing of the reusable iron rack

project in January 2024 and officially implemented it in May 2024.By the end of 2024 a total of 1176 iron racks had been deployed with

25812 recycling cycles completed throughout the year. Each use of an

iron rack saves materials including 2 cardboard boxes 4 wooden liners

and 1 wooden pallet. In 2024 the Jiaxing facility achieved cumulative

savings of 51624 cardboard boxes 103248 wooden liners and 25812

wooden pallets.FIRST 2024 ESG Report 44Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

Chemical management constitutes a critical component of our production safety system. In addressing the

specialized requirements we rigorously comply with applicable laws and regulations and have established the

following management systems: Safety Management System for Precursor Chemicals Explosive Chemicals and

Highly Toxic Chemicals Hazardous Chemical Management System Hazardous Waste (Solid Waste) Management

Regulations Safety Management Regulations for Chemical Ingredient Warehousing Hazardous Chemical Storage

Safety Management System Hazardous Chemical Safety Information Card Management System. We have compiled

corresponding MSDS Safety Technical Requirements and established a Hazardous Chemical Inventory to

standardize transportation handling storage labeling usage disposal and treatment of hazardous chemicals.Chemical Substance Management System

We have implemented and strictly enforces the Hazardous Chemical Management System establishing a

comprehensive closed-loop supervision framework encompassing the entire lifecycle from R&D procurement

production storage/transportation usage to waste disposal. Through Standardized MSDS management Dedicated

warehouse management Professional emergency response protocols Annual safety retraining programs we

effectively execute hierarchical classification management of hazardous chemicals. Regular EHS audits and

occupational health risk assessments ensure full compliance with GB 15603 General Rules for Hazardous Chemical

Storage Warehouses and ISO 14001 Environmental Management System requirements. These measures minimize

occupational health risks and ecological impacts while continuously enhancing intrinsic safety.Hazardous Chemical Lifecycle Management Process

123

Approval> Packaging>

MSDS registration + Approved supplier list + Explosion-proof

process risk transportation workshops +

assessment qualification verification automated control

systems

654

Management>

Manifest tracking + Quantitative dispensing + Zoned classification +

harmless treatment emergency smart monitoring

decontamination facilities (temperature/humidity/l

eakage)

FIRST 2024 ESG Report 45Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

We issue No.1 document annually to set forth safety management requirements formulating annual safety targets for

each aspect of chemical safety and we achieved 100% of the set goals. In areas involving chemical usage and

storage such as production and R&D we enforce stringent regulatory measures and maintain clear signage to

mitigate risks. We employ experts to identify purchase use and store chemicals and organize relevant training

periodically. This ensures clarity on the procurement storage collection and use of chemicals and promote

protective and emergency practices.Regulatory

Responsibility Executing Department

Department

R&D Department: Identify and make optimal choices based on the characteristics of

various chemicals responsible for updating replacing or phasing out chemicals and EHS Department

for testing and hazard assessment of new chemical substances.Regulatory

Procurement Department: Ensure compliance with laws and regulations governing the Responsibility

procurement transportation and storage of hazardous chemicals. Source from The functional

department for the

suppliers possessing the "Hazardous Chemicals Production and Operation License"

management of

verify the transportation unit's qualification and establish safety agreements with both hazardous chemicals.supplier and transporter. It is responsible for

compiling a list of

User Department: Complete the Hazardous Chemical Inventory for approval and record hazardous chemicals

by the EHS department. Supervise hazardous chemical use ensuring adherence to and safety

MSDS and proper personal protective equipment. Maintain detailed records with the information cards

managing and

"Hazardous Chemicals In and Out Ledger" strictly following safety procedures product

supervising the

instructions and prevention measures. Properly collect and store chemical waste execution of

collaborating with the EHS department to determine waste type and develop compliant hazardous chemical

disposal plans entrusting qualified suppliers for disposal. usage processes and

personnel

Quality and Storage Department: Conduct thorough safety and quality inspections qualifications and

managing the

during hazardous chemical storage adhere to national laws and regulations for storage

recycling and

locations prominently display warning signs and maintain daily safety management of disposal of related

storage sites and surrounding areas. waste materials.Procurement Department: Responsible for executing the chemical purchase and Emergency Handling

technical agreements as well as establishing safety technical standards for raw Establish emergency

materials. All suppliers must provide chemicals with MSDS documents and COA response plans for

hazardous chemicals

compliant with company regulations and national standards.standardizing the

handling methods for

EHS Department: Tasked with formulating and inspecting rules and regulations accidents of different

pertaining to hazardous chemicals management including the regular update of types and scales

system documents. (including adsorption

of spills cutting off

User Department: Conducts operations in adherence to established standards outlined leaks organizing

in documentation provided by the EHS Department and procurement agreements. evacuations etc.).When necessary

User Departments: Must establish corresponding signs for the use of chemical labels.initiate emergency

EHS Department: Establishes the corresponding signs. plans and report to

the relevant

Supplier: According to the national standard 'Regulations for the Compilation of departments.Chemical Safety Labels' (GB 15258-1999) safety labels must use a combination of

text graphic symbols and codes to indicate the hazards and safety precautions of

chemicals; safety labels should be affixed hung or printed by the manufacturer in a

conspicuous position on the packaging or container before the goods leave the factory;

if the packaging is changed the changing unit must re-affix hang or print the labels.FIRST 2024 ESG Report 46Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

Based on the characteristics of chemicals we have categorized them into three types: chemicals prone to being

used for drug and explosive production hazardous chemicals and other chemicals. We manage strict identification

and differentiation according to the MSDS Safety Technical Requirements for each type of chemical.

1) Internally the company is optimizing the use of highly hazardous and toxic chemicals with the R&D department

responsible for gradually researching phase-out or implementing replacement plans.

2) In compliance with national laws we strictly prohibits the use of problematic chemicals updating the catalog as

per regulations. Following the June 2023 announcement by the Ministry of Ecology and Environment and 11 other

departments regarding restrictions on five types of persistent organic pollutants including Polychlorinated

Naphthalenes we've assessed our chemical usage. Any identified chemicals have been investigated and phased

out in accordance with regulations.In adherence to relevant laws such as the People's Republic of China Narcotics

Control Law and Regulations on the Control of Chemicals Used for Illicit Drug

Production we've established SOP-EHS-030 Safety Management System for

Precursor Chemicals Explosive Chemicals and Highly Toxic Chemicals. There is strict

Chemicals Prone to management in the production operation transportation and storage of chemicals

prone to being used for drug production with one specially designated keeper with

Misuse for Drug and

national qualifications for the safety management of chemicals used for illicit drug

Explosive Production production and two part-time keepers responsible for related affairs. Chemicals are

stored separately with a dual-lock system and inventory records are meticulously

maintained. Monthly inventory checks are conducted and any issues are promptly

reported to local authorities. Emissions wastewater and waste residue are treated to

meet national regulations with no mixing allowed for disposal.We adhere to the Regulations on the Safety Management of Hazardous Chemicals

and have established SOP-EHS-018 Hazardous Chemical Management System.Hazardous Chemicals Precise control is maintained over procurement transportation storage use and

disposal guided by SOP-EHS-040 Hazardous Chemical Storage Safety Management

System and SOP-EHS-048 Hazardous Chemical Safety Information Card

Management System.Non-hazardous chemicals are managed according to company standards with the

Other Non-Hazardous

R&D department identifying material characteristics the EHS department outlining

Chemicals management requirements and the user department overseeing daily safety

management.FIRST 2024 ESG Report 47Response to Climate Change Environmental Compliance Management Energy Management

Water Resource Utilization Emissions & Waste Management Chemical Safety

Our assessment of new substance hazards focuses on human health impacts and environmental risk. We begin by

identifying characteristics such as physicochemical properties toxicology and hazards. Then we determine potential

harms by analyzing data to identify short-term or long-term effects including direct health impacts or potential

environmental harm. Finally we devise control measures based on these assessments including storage workplace

standards personal protective equipment and environmental safeguards.We've established a robust system for assessing and introducing chemical substances. Our main raw materials

undergo Raw Material Introduction Process and special additives through an Additive Introduction Process with

hazard assessment being a critical step involving collaboration across EHS R&D quality process production and

procurement departments. During the supplier onboarding process we require raw material suppliers to provide

product RoHS and REACH compliance reports. Materials that fail to meet testing standards are excluded from

procurement achieving dynamic zero-tolerance for high-concern chemical substances at the sourcing stage.Our company engages deeply with leading global raw material suppliers aligning the introduction and assessment

processes with the ISO 9001:2015 Quality Management System and comprehensively incorporating ESG

performance into the supplier audit process. We implement Supplier Management Control Procedure to regulate

supplier selection assessment performance evaluation and improvement processes ensuring continuous

compliance with our requirements.Chemical raw material suppliers are vetted through a multi-step process for inclusion in the Approved supplier list:

supplier qualification review → sample assessment → pilot assessment → semi-industrial assessment → change

review → supplier audit (factory inspection) → qualified supplier; the Purchasing Control Procedure determines

purchase volumes based on supplier assessment categories and levels. Our primary raw materials such as Ethylene-

Vinyl Acetate Copolymer (EVA) and Polyolefin Elastomer (POE) have been sourced for years through procurement

cooperation with global leaders like Dow Chemical LG Chem and ExxonMobil with whom we also engage in in-

depth scientific research for new product development and application.FIRST 2024 ESG Report 48Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

In our technological innovation endeavors we strictly comply with laws and regulations including the Law of the

People's Republic of China on Scientific and Technological Progress and relevant industry standards. "Innovative

Technologies for The Future" stands as one of our fundamental management principles. With PV encapsulation

materials as our core business and polymer materials at our technological center we have successively developed

and commercialized new materials for electronic circuits lithium battery encapsulation water purification and

applications in automotive/5G/display fields. Every technological breakthrough we have achieved through over twenty

years of industrial exploration stems from persistent research and innovation which has firmly established us as a

technology-driven enterprise with profound R&D heritage.FIRST has established three specialized research institutions for technological innovation - Zhejiang FIRST Advanced

Material Research Institute (a Zhejiang Provincial Key Enterprise Research Institute) the Electronic Materials R&D

Center (a Provincial High-Tech Enterprise R&D Center) and the Technical Committee (an Internal Specialized

Management Unit).The Corporate Technology Center serves as the highest-level scientific management authority and the core of our

innovation ecosystem. It functions as the crucial platform for advancing technological progress transforming traditional

industries through high-tech applications and facilitating industrial upgrading.The Corporate Technology Center

Zhejiang FIRST Advanced Electronic Materials

Technical Committee

Material Research Institute R&D Center

The Zhejiang FIRST New Materials Research Institute primarily focuses on researching

cutting-edge projects in PV encapsulation technology addressing critical technical

challenges in key encapsulation materials for the new energy industry chain guiding

industry development trends and promoting the advancement of the new energy sector.Breakthroughs in key issues of encapsulation materials will directly impact the

application and development of PV new energy technologies thereby influencing

increasingly pressing environmental concerns.Zhejiang FIRST New

The Electronic Materials R&D Center concentrates on electronic chemical materials as Materials Research Institute

a major category of emerging industrial materials conducting research and

development on photosensitive dry films FCCL and photosensitive solder resist. It

actively implements strategic plans for optoelectronic new materials strengthens the

company's R&D capabilities in advanced materials and ensures sustainable growth.The Technical Committee is primarily responsible for providing technical guidance for

new product research maintaining forward-looking leadership in encapsulation material

development. Additionally it oversees the daily operations and administrative affairs of

the Corporate Technology Center ensuring the smooth functioning of all product

Electronic Materials R&D

divisions. Center Building

FIRST 2024 ESG Report 50Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

Since its establishment FIRST has consistently prioritized independent innovation as its core principle guided by the

company's technological innovation development strategy. In accordance with business development needs FIRST

strategically coordinates technological innovation activities annually investing over 3.4% of sales revenue into

various scientific and technological innovation initiatives with independent accounting and specialized management

for all approved projects. To enhance R&D efficiency and technology commercialization capabilities we have

established a comprehensive scientific research institutional system including: Research and Development Project

Management System Design and Development Control Procedures Technological Achievement Evaluation and

Reward Measures FIRST Scientific Research Funding Management System and Financial Accounting System for

R&D Project Investments. These systems cover multiple stages including project initiation process control

achievement evaluation and funding management ensuring standardized and efficient R&D activities while providing

solid support for technological innovation and sustainable development.As of December 31 2024 we employed 715 R&D technical personnel with approximately 18% holding master's

degrees or higher. R&D technical personnel accounted for about 15% of the total workforce. We maintains strong

commitment to R&D investment with cumulative annual R&D expenditures reaching RMB 645 million in 2022 RMB

792 million in 2023 and RMB 657 million in 2024 maintaining industry leadership.

R&D Metrics and Targets 2024 Target 2024 Achievement

R&D Investment (RMB billion) ≥0.65 0.657

R&D Personnel Maintain stability Achieved stable maintenance

In 2024 FIRST actively participated in national and provincial-level key R&D projects driving industry technological

advancement and sustainable development.* Successfully passed the acceptance of the sub - project "R&D of High - reliability Encapsulation Film Products

and Technologies" under MIIT's industrial foundation reconstruction and high - quality manufacturing project.* Participated in the Ministry of Science and Technology's National Key R&D Program "Large - area Perovskite

Module Large - scale Preparation Technology and Demonstration Power Station Application" now in the critical

stage.* The "Key Technology and Application Development of * "Development and Industrialization of High -

High-Reliability Encapsulation Materials for N-Type High- performance Photoresist" was selected as a key

Efficiency Batteries" won the 2024 Zhejiang Province scientific research project of Hangzhou in 2024.Science and Technology Progress Second Prize. * "Development of Interconnection Ribbon Carrier

* The Zhejiang Province "Pioneer" and "Leading Goose" Film for HJT Cells" was selected as a

Research Plan project "Development of Thin Film technology research project in Lin'an District in

Encapsulation Materials for Flexible OLED" was 2024

successfully completed.FIRST 2024 ESG Report 51Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

We are a platform-type material enterprise. Since the successful development

of EVA film in 2003 we have been deeply rooted in the PV material field for

over 20 years carrying out thorough research on the formula process and

equipment of PV films and backsheets. In recent years building on a key

common technology platform we have continuously researched and developed

new material products such as electronic materials and functional materials

possessing strong internal growth momentum. In the future we will steadfastly

implement the development strategy of "Focus on the main PV business and

vigorously develop other new material industries" driven by technological

innovation to achieve the domestication of more key new materials.We have always independently developed and constructed film production equipment

mastered core design and manufacturing technologies with a strong team of over 200

people and a systematic professional talent training system to meet the equipment

construction needs of production bases globally. Upholding the business tenet of

"innovative technology for the future" we continuously provide technological

breakthroughs for various products in terms of R&D quality and efficiency serving the

differentiated requirements of customers and markets. Focusing on the innovative

development of equipment automation and digitization we have deepened applications

in production storage energy and other aspects adapting to the trends of industry

development. With sustained investment and cultivation in equipment technology

coupled with the dual advantages of equipment and product technology we remain our

core competitiveness.We have established a professional digital team and have developed ERP

MES WMS EAM systems covering the main products of each subsidiary in the

group obtaining five software copyrights. We have also acquired professional

software such as OA SRM TMS and our software developers have linked

various systems together. Through a combination of software procurement and

self-development these systems play a significant role in the company's

production and operations. Our software personnel apply IoT digital twin

technology edge gateway computing technology etc. to actively enhance

management efficiency and increase production capacity.FIRST 2024 ESG Report 52Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

As a global leader in PV encapsulation film technology we consider intellectual property strategy a core component of

our competitive advantage. Recognized as a National Intellectual Property Advantage Enterprise and Zhejiang

Province Intellectual Property Demonstration Enterprise FIRST has established a comprehensive IP system

encompassing management creation utilization and protection. In 2024 through deepened international cooperation

patent navigation projects intelligent management system upgrades and multi-level talent development we achieved

transformative progress in IP laying a solid foundation for global expansion and sustainable growth.FIRST has implemented a robust organizational structure institutional safeguards and digital transformation to

ensure efficient and compliant IP governance providing strong support for innovation-driven development.FIRST maintains a dedicated IP department with 5 full-time professionals:4 certified patent agents and 1 multi-

qualified expert (patent agent + legal practitioner + intermediate patent management engineer + IP engineer). This

"legal-technical-management" competency matrix ensures comprehensive IP coverage and operational synergy

across all dimensions.We implement tiered training programs to cultivate IP talent:

* R&D Personnel: Annual training: ≥4 sessions on PatSnap Patent Search Hands-On Training and Internal

Technical Disclosure Writing Workshop. 2024 achievement: 83% of patents reached Grade B+ or higher.* IP Engineers: Monthly advanced courses covering patent invalidation strategies retrieval/analysis litigation case

studies authorization procedures innovation tools and international patent operations. Annual training: ≥12

sessions to enhance professional competencies

2019: First time passed GB/T29490-2013 certification (No.18119IP5388ROM) and initially established an intellectual

property management system.

2022: Passed the three-year re-certification which verified the continuous effectiveness of the system.

2024: Successfully passed the surveillance audit further demonstrating the maturity and stability of the system.

FIRST 2024 ESG Report 53Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

FIRST consistently regards intellectual property creation as the core driver of corporate innovation and development.Through technological leadership and innovation-driven strategies we have established a robust patent portfolio and

R&D collaboration mechanism laying a solid foundation for sustainable growth.By implementing the Zhejiang Province Patent Navigation Project and aligning

with independent R&D needs FIRST conducts targeted analysis of

technological gaps and competitive landscapes effectively reducing R&D costs.Concurrently we have established a patent database to monitor global

technological trends in real-time guiding iterative optimization of R&D directions.As a Zhejiang Province Intellectual Property Demonstration Enterprise and

National Intellectual Property Advantage Enterprise FIRST continues to lead

industry trends in IP development. The company's GB/T29490-2013 Intellectual

Property Management System certification has further standardized IP

management processes enhancing efficiency and compliance while providing

strong safeguards for technological innovation and IP protection.As of December 31 2024 FIRST has cumulatively filed 945 patent applications (including design patents)

comprising: 742 invention patents (301 granted and valid) 189 utility model patents (136 granted and valid). Core

technologies cover photovoltaic film materials process optimization and equipment innovation. During the

reporting period the company filed 98 new invention patent applications and obtained 53 grants. In 2024 FIRST

filed 16 new international patent applications strategically targeting key markets including Europe the U.S.Japan and South Korea thereby strengthening global technological barriers.FIRST 2024 ESG Report 54Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

FIRST places high importance on global IP protection ensuring compliance and competitiveness in international

markets through strategic patent deployment and risk early-warning mechanisms.In 2024 FIRST prioritized patent deployments in key We have implemented a comprehensive IP risk early-

markets including Europe America Japan and South warning mechanism. Through real-time monitoring and

Korea completing 16 international patent applications analysis we promptly identify and address potential

covering core products and next-generation technologies. patent infringement risks to protect corporate interests.Collaborating with top-tier overseas law firms we Leveraging our robust IP portfolio and professional

established patent risk early-warning models for target legal team we actively defend our legitimate rights to

markets to predict potential infringement litigation and ensure stable market positioning providing solid

develop contingency plans safeguarding global IP support for global operations.security.FIRST actively expands exchanges and cooperation with governments industry organizations and domestic/foreign

IP service institutions to continuously enhance IP protection capabilities.At the end of 2024 leaders from the China National Intellectual Property

Administration visited FIRST for discussions providing valuable guidance for our

IP work. This exchange not only demonstrated governmental recognition of our

IP achievements but also offered important references for optimizing future IP

strategies.Coinciding with the 2024 AIPPI World Intellectual Property Congress in

Hangzhou FIRST seized the opportunity to strengthen cooperation with patent

agencies conducting in-depth discussions on patent/trademark authorization

and protection in the U.S. Europe Japan and South Korea. These exchanges

enhanced mutual understanding in IP fields jointly improving protection

efficiency and quality to create safer more stable business environments. The

deepened cooperation with global IP service partners has broadened our

international perspective while providing additional resources for worldwide IP

protection.Intellectual property serves as critical support for driving continuous innovation and high-quality development.Adhering to our "Innovation Leadership Knowledge Empowerment" philosophy we will keep optimizing IP

management systems and enhancing capabilities in IP creation utilization protection and administration to

safeguard long-term development. We remain committed to strengthening patent quality and global operation

capabilities to create sustainable value for shareholders customers and society.FIRST 2024 ESG Report 55Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

Adhering to the long-standing quality policy of "Innovative Technology for The Future Customer First with Quality

Foremost" FIRST consistently drives development through innovation and quality delivering reliable products and

services to customers. Our Hangzhou headquarters and all production bases are ISO9001:2015 certified with PV

encapsulation film products complying with national industry and corporate standards.We have established a comprehensive quality management system with both headquarters and base-level quality

departments. HQ Quality Department: Responsible for system construction process design product quality

assurance data analysis and improvement initiatives. Base Quality Departments: Implement PDCA cycles for full-

process quality control utilizing QMS for cross-base standardization - from PFMEA/control plan development to

execution monitoring of standards inspections and operating procedures. Through real-time monitoring and

benchmarking across bases we identify variances for optimization. The QMS automatically triggers workflows for

abnormal incoming/process/final inspections with ERP-enforced quarantines. The system also monitors

material/WIP/finished goods shelf life with automatic re-inspection triggers. Complaint processes feature time-node

tracking closure rate statistics and tiered classification to standardize analysis and build improvement case libraries.As of reporting period 100% of production subsidiaries (Hangzhou HQ Electrical Materials Functional Film Materials

Suzhou Chuzhou Thailand Jiaxing Vietnam) maintain ISO9001 certification.System System Name Coverage of Production Subsidiaries

ISO9001 Quality Management System 100%

FIRST 2024 ESG Report 56Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

We implement comprehensive quality management across multiple processes and all production bases to achieve full

product lifecycle quality control. The responsibilities of the headquarters quality department during the product

lifecycle include:

* Reliability and shelf-life validity evaluation during product

Development development

Quality * Quality risk identification at each development stage

* Maturity assessment and improvement at each development phase

* Compliance evaluation of materials during supplier onboarding

Supplier

* Quality performance tracking and improvement throughout supplier

Management

lifecycle

* Cross-base quality data benchmarking and improvement

* Product/process/system audits and enhancements at production

Improvement

bases

Activities

* Cross-base QCC (Quality Control Circle) activities and specialized

improvements

Change * Risk identification and assessment for changes

Management * Process control and compliance assurance during changes

* Hierarchical access design for management systems

Documentation

* Integration of management system planning with QMS (Quality

Control

Management System)

* Tiered classification and management of complaints

Complaint

* Performance evaluation of complaint resolution timeliness and

Management

improvement effectiveness

* Evaluation of customer production processes equipment and

After-sales

product compatibility

Service

* Technical support for product application issues at customer sites

Metrology * Unified measurement planning and implementation across bases

Certification * Monthly testing benchmarks and improvements across bases

FIRST 2024 ESG Report 57Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

With the continuous growth of our global operations we place high importance on

product and service safety and quality actively participating in the AEO (Authorized

Economic Operator) recertification process. As an AEO-certified enterprise - the

highest customs credit rating - this certification effectively reduces cross-border

regulatory costs enhances logistics efficiency and further ensures the security and

convenience of our global supply chain. This enables us to provide efficient services

and supports timely high-quality order fulfillment. Concurrently FIRST has been

recognized as a AAA-Level Enterprise for Contract Compliance and

Creditworthiness in Zhejiang Province. In sales procurement and various project

contracts we strictly adhere to these standards to ensure full compliance with

contractual terms maintaining long-term stable customer trust and partnerships.These initiatives not only improve customer satisfaction but also demonstrate our

commitment to responsible global operations.To refine evaluation categories and more accurately assess customer satisfaction we optimized our survey

methodology in 2024 by adjusting calculation methods and raising scoring criteria resulting in slightly lower overall

and categorical scores compared to previous years. Regarding product quality we continue to enhance production

management to ensure consistent quality while controlling costs. For services we have expanded our rapid-response

capabilities and established comprehensive customer support systems to deliver more efficient and thorough service.Moving forward we will remain customer-centric in continuously improving our products and services.Customer Satisfaction Performance

2024 (New Evaluation Mechanism) 2023 2022

100.00% 100.00%99.07% 98.99% 100.00% 98.94% * Customer Satisfaction 98.99% 98.15% 97.98% 98.89%

97.84% Rate≥96% (Under new

96.94%96.76%96.49%97.14%

evaluation mechanism)

* Target Achieved: 2024

Customer Satisfaction

Rate 97.14%

PRODUCT SALES & PACKAGING & DELIVERY OVERALL

QUALITY SERVICE DELIVERY TIMELINESS SATISFACTION

Key product evaluation dimensions

Sales & Technical Service Delivery Quality (Packaging &

Product Quality Dimensions

Dimensions Timeliness Dimensions)

Product Safety Customer Needs Understanding Packaging Protection

Batch-to-Batch Consistency Feedback Responsiveness On-Time Arrival

Performance Compliance Issue Resolution Capability Delivery Service Attitude

Usage Effectiveness Problem-Solving Satisfaction Punctual Delivery

Complete Test Reports Technical Service Expertise Supply Capacity Reliability

FIRST 2024 ESG Report 58Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

We implement standardized process management for customer feedback. All complaints enter the workflow within 24

hours of receipt undergo severity rating based on three dimensions (severity frequency and impact) and are then

classified into different sub-processes according to established rules generating statistics on timeliness improvement

effectiveness and closure rates.Evaluation Dimension/ Responsible

Dimension Level Classification Lead Department

Complaint Classification Department

FIRST 2024 ESG Report 59Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

FIRST places paramount importance on data security and customer privacy protection strictly complying with the

Cybersecurity Law of the People's Republic of China. We strictly adhere to the Level 2 security requirements to

comprehensively advance our information data security system ensuring robust protection of customer data security

and privacy. Through refined management measures and technical solutions we are committed to providing secure

and reliable services while continuously enhancing data security management standards.FIRST has established the FIRST Information Security Management Policy and Confidentiality Management Policy

for data security and privacy protection along with 4 additional policies including Data Center Management Policy

and Data Center Emergency Response Plan for infrastructure security. Our IT leadership oversees overall data

security planning and implementation while the IT Department is fully responsible for detailed construction of data

security solutions.FIRST has conducted thorough identification and analysis of potential data security risks across all stages of the data

lifecycle (generation transmission storage usage and destruction). In the data generation phase the primary risks

involve data quality and access control. To address these the company has established a data classification system

and access authorization protocols with designated departments responsible for data creation and archiving to ensure

high data quality and proper authorization. For data transmission the main concern is the risk of network transmission

leaks. FIRST has implemented multiple security measures including internal/external network firewalls segregated

office and guest networks and SSL protocol encryption to enhance transmission security. Regarding data storage the

key risk is data loss. The company has significantly improved storage security by building a hyper-converged data

center implementing automated backup solutions and establishing an off-site disaster recovery center. During data

usage the prominent risks are data tampering and leaks. FIRST ensures data and network security through

standardized system interfaces and by installing encryption and antivirus software on endpoint devices. For data

destruction the company plans to develop strict data standards and procedures to prevent improper destruction of valid

data and ensure compliant destruction processes.FIRST has established a comprehensive data security management system. The IT Department is responsible for

identifying and monitoring security risks throughout the data lifecycle to ensure end-to-end protection. The Equipment

Management Department maintains the stability and security of storage devices while using network security equipment

to monitor network behavior and endpoint security in real-time providing technical safeguards. Recognizing that data

security requires both technical solutions and employee awareness the IT Department conducts regular annual training

on data security and confidentiality. This strengthens staff risk prevention awareness and operational standards

building a dual-focused protection system that combines technology and awareness to ensure comprehensive and

sustainable data security management.Data Security Incidents Zero incidents with zero financial loss Achieved: Zero incidents

Data Security/Customer Privacy

1 session (≥80% coverage) Achieved: 1 session (86% coverage)

Protection Training

Sensitive Data Encryption Rate 100% Achieved: 100%

FIRST 2024 ESG Report 60Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

In 2024 FIRST continued to strengthen supply chain security management committing to build a more robust

transparent and responsible supply chain system. Through implementing a series of innovative strategies and

measures we have effectively enhanced supply chain security and resilience ensuring product and service quality

cost efficiency and positive contributions to environmental and social impacts.Oversight Level: The Internal Audit Department collaborates with third-party authoritative institutions (e.g. SGS) to

conduct annual comprehensive compliance audits of the supply chain. These audits thoroughly examine compliance

issues across all supply chain segments with results reported directly to the Board of Directors to support critical

decision-making.Decision-making Level:The "Procurement Committee" established the Board of Directors

to ensure supply chain security and sustainable development is

chaired by the CEO with members including the Supply Chain

Director Operations Management Director Sales Director and

Finance Director. The committee holds ad hoc meetings to share

information on upstream/downstream markets partners policy

changes supply/demand dynamics and reviews supply chain risks

Sales Finance

while adjusting strategies based on market trends to align with

Director Director Director

corporate objectives.Execution Level: The headquarters established a Supply Chain

Center responsible for supplier ESG audits supply market risk

analysis and early warnings to control risks at source.The Supply Chain Center oversees three departments:

Procurement Division I manages raw material procurement

imports and logistics carriers. Procurement Division II handles

auxiliary materials additives MRO procurement and system

platform development. Materials Management Department focuses Subsidiary Subsidiary Subsidiary

on packaging design standards development and material bases bases bases

recycling. Subsidiary bases have their own procurement/logistics

departments under headquarters' supervision.Coordination Level: Multi-department collaboration ensures

supply chain security and sustainability.Operations Managemen Department develops production plans to

inform supply chain planning. Sales Department shares

market/downstream information to support strategies. Finance

Department provides funding security. Investment Management

Department monitors external policy risks and gives early

warnings. Legal Affairs Department conducts contract compliance

reviews and legal risk monitoring

Information Reporting: Regular/ad hoc meetings facilitate decision-making with major risks reported to committee

within 24 hours.Performance Accountability: Supply chain security KPIs are incorporated into executive evaluations with "red-line

indicators" for departments ensuring effective implementation throughout the organization.FIRST 2024 ESG Report 61Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

FIRST comprehensively identifies potential supply chain risks including supply disruptions ESG risks logistics risks

and compliance risks. Through regular risk assessments using scientific methodologies and tools we accurately

determine the scope duration and severity of various risks to inform targeted risk management strategies.Natural Disaster Risks ESG Risks

Logistics Disruption Risks Legal Compliance Risks

Utilizing big data and IT systems FIRST has established a TMS (Transportation

Logistics Risk Early

Management System) to monitor logistics vehicle operations in real-time enabling timely

Warning System

risk detection and early warnings to facilitate proactive responses.We have developed comprehensive supply chain risk contingency plans covering

Emergency Plans emergency response procedures resource allocation solutions and alternative supplier

and Resource selection. Through risk-sharing mechanisms with suppliers and logistics partners we can

Allocation rapidly mobilize resources during disruptions to minimize impacts and ensure supply

chain continuity.FIRST actively implements supplier diversification continuously expanding supplier

Diversified Supplier resources and optimizing supplier structure. Concurrently we optimize logistics networks

Strategy with strategically located inventory buffers and safety stock to enhance supply chain

resilience against potential disruptions.We have established systematic supply chain security management processes encompassing risk identification

assessment prioritization monitoring and control. Through regular risk assessments and continuous improvement

we optimize processes to enhance supply chain transparency and resilience.Supply Chain Risk Response Mechanism Through M&A technological innovation and other approaches FIRST

integrates resources to strengthen core supply chain competitiveness. Examples include investing in

upstream/downstream enterprises to complete industry chains and implementing smart supply chain management

through technological innovation to improve operational efficiency.Green Supply Chain Development FIRST actively promotes green supply chain initiatives including green

procurement production and logistics. To advance circular economy development while reducing costs and resource

consumption our Supply Chain Center established a Materials Management Department to promote reusable

packaging materials adopt advanced technologies to minimize waste optimize logistics networks and enhance

overall supply chain sustainability through collaboration with suppliers and customers.FIRST 2024 ESG Report 62Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

We have established the Supplier Management Control Procedure to implement standardized lifecycle management

of suppliers. Additionally as an AEO (Authorized Economic Operator) Advanced Certified enterprise FIRST

rigorously selects business partners and conducts comprehensive supplier evaluations based on customs advanced

certification standards with particular focus on regulatory compliance and trade security performance.Conduct qualification reviews including basic information certifications (e.g. ISO9001

ISO14001) and product qualifications (e.g. RoHS REACH TDS MSDS)

Onboarding Phase Perform small-batch and pilot production evaluations with documented reports

Conduct on-site audits for critical suppliers covering 11 aspects: quality production

facilities supply chain R&D HSE social responsibility trade security etc.Classification Tiered management of qualified suppliers based on product criticality and performance

* Monthly/quarterly assessments for qualified suppliers covering quality delivery

Performance pricing and service

Evaluation * Implement improvement guidance and incentive/penalty measures based on

resultsm. Continuously optimize the supplier structure.* On-site audits are conducted by professional teams. Non-conformities are

documented along with the corresponding corrective actions and the rectification of

Annual Audit these issues is supervised

* 37 suppliers audited during reporting period with 27 non-conformities - 100%

rectified as scheduled

* Suppliers rated "D" in evaluations remains unqualified after being guided by

relevant departments or is unanimously deemed by relevant departments to be

Phase-out and Exit

eliminated it will be phased out

* Immediate blacklisting for integrity violations or illegal activities with permanent

disqualification

FIRST 2024 ESG Report 63Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

FIRST has established a comprehensive supplier ESG management system that systematically integrates ESG

principles throughout the supplier management process through institutional development and process optimization.The company formulated the Supplier Social Responsibility Management Regulations to incorporate supplier ESG

performance into management processes and created the FIRST Supplier ESG Code of Conduct Commitment

requiring suppliers to strictly comply with relevant laws and regulations in environmental protection occupational

health and safety business ethics and management systems while actively fulfilling social responsibilities to promote

sustainable development.For implementation FIRST ensures effective ESG compliance through dual mechanisms: First a mandatory

commitment system achieved 90.5% signing rate of the Code of Conduct among qualified suppliers during the

reporting period with the remaining 9.5% deemed compliant through submitting ESG reports meeting the

requirements. Second ESG performance has been incorporated into the supplier audit system with a new "Social

Responsibility" module to ensure effective ESG practice execution through evaluation and continuous monitoring.These measures not only strengthen supply chain ESG risk management but also provide robust support for

sustainable industrial chain development.To enhance upstream-downstream supply chain cooperation FIRST

organizes annual supplier conferences to facilitate interaction and clarify

responsibility requirements. The 2024 conference themed "Upholding

Standards Winning Through Quality Navigating Cycles Embracing the

Future" combined online and offline formats gathering hundreds of key

supplier representatives across FIRST's partnership network. The event

emphasized suppliers' strategic importance acknowledged their

contributions and outlined new expectations regarding collaborative

development quality assurance safety and integrity and digital

transformation.Green Procurement and Production FIRST actively promotes green

procurement by prioritizing eco-friendly materials and products. For production we

increase technological innovation investment adopt advanced processes and

equipment to reduce energy consumption and emissions achieving green

manufacturing.Green Logistics We continuously optimize logistics networks and transportation

routes to improve efficiency while promoting green logistics technologies like new

energy vehicles to reduce carbon emissions during transportation.Circular Economy Through collaborative pallet recycling projects with multiple

suppliers FIRST utilized 85203 shared pallets in 2024 reducing approximately

1278 tons of disposable plastic pallet waste.

FIRST 2024 ESG Report 64Innovation-driven Development Intellectual Property Protection Product and Service Safety and Quality

Data Security and Customer Privacy Protection Supply Chain Security

Talent Development FIRST has established a comprehensive talent cultivation system for supply chain

professionals conducting regular specialized training through internal programs external advanced

studies and academic exchanges to enhance team expertise and comprehensive competencies.Team Building FIRST prioritizes building a high-caliber supply chain management team. Through

internal training and external collaboration we foster a positive team environment that strengthens

cohesion and collaboration capabilities.We are committed to achieving zero supply chain disruption risks. During the reporting period through implementing a

series of risk management measures and temporary contingency plans supply chain security was effectively

maintained with disruption risks under control making steady progress toward our target. Additionally we have

intensified efforts to enhance supply chain transparency and sustainability significantly advancing green supply chain

initiatives. We have made remarkable progress in the construction of the green supply chain. The proportion of green

procurement has been continuously increasing and the circular economy has been widely applied.Metrics and Targets 2024 Target 2024 Achievement

Supply Chain Risk Assessment Achieved: 100% coverage of suppliers in qualified vendor

100%

Coverage list enabling comprehensive risk monitoring

Achieved: 100% of supply chain team members

Supply Chain Risk Awareness

100% completed training elevating overall risk prevention

Training Coverage

awareness

By implementing risk management and temporary

Zero disruption emergency measures we ensured supply chain security

Supply Chain Security

risk and effectively controlled the risk of supply chain

disruption

Significant progress achieved with rising green

Green Supply Chain Increase green

procurement rates and widespread circular economy

Development procurement ratio

applications

While current procurement activities do not involve conflict minerals FIRST remains committed to supply chain

sustainability by continuously monitoring international standards and policy requirements. As business develops the

company will formulate responsible minerals management policies and take corresponding actions to contribute to

industry sustainability.FIRST 2024 ESG Report 65Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST strictly complies with laws and regulations including the Work Safety Law of the People's Republic of China

Occupational Disease Prevention and Control Law and Production Safety Accident Emergency Response Plan

Management Measures having established a comprehensive occupational health and safety management system.Organizationally the company has set up Work Safety Management Committees at both business division and

subsidiary levels to oversee and supervise safety operations. All subsidiaries maintain occupational health and safety

management systems to ensure standardized and institutionalized safety practices.To effectively prevent and control occupational health risks FIRST conducts annual risk identification assessments

and provides regular professional training to enhance employee safety awareness and emergency response

capabilities. Additionally the company organizes emergency drills targeting identified risks to ensure staff familiarity

with workplace hazards and countermeasures.Annual occupational health and safety work plans are developed with clear objectives and measures forming a closed-

loop management cycle from risk identification and training to drills and continuous improvement. These initiatives

demonstrate our commitment to ongoing occupational health and safety enhancement and employee wellbeing.System System Name Coverage of Production Subsidiaries

ISO45001 Occupational Health and Safety Management System 100%

2024 Major Occupational Health Risks and Countermeasures

Occupational Hazard

Countermeasures

Factors

Engineering controls: Installed noise enclosures baghouse dust collectors and exhaust

hoods in hazardous areas to reduce environmental exposure levels

Noise

Personal protective equipment: Provided earplugs earmuffs dust masks and respirators to

Dust at-risk employees

Hazard monitoring: Annual third-party testing confirms all occupational hazard factors comply

Chemical with regulatory standards

substances

Health surveillance: Annual medical examinations for exposed employees with ongoing health

monitoring

To safeguard employee health and safety FIRST maintains standardized work accident investigation procedures.Upon occurrence:

Immediate Medical Care: Prioritize transporting injured personnel to medical facilities for prompt treatment.Rapid Response: Immediately form investigation teams to determine causes and responsibilities.Continuous Improvement: Develop targeted corrective and preventive measures with tracking mechanisms to prevent

recurrence.FIRST 2024 ESG Report 67Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

Emergency Rescue

(According to the Emergency Plan)

FIRST 2024 ESG Report 68Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

We attach great importance to the safety and

health of employees and regularly conducts first

aid capability training. Through professional

training employees can master first aid skills for

handling accidental injuries and sudden

emergencies in daily life and work. This further

enhances their safety awareness as well as self-

rescue and mutual rescue abilities ensuring the

safety of employees' lives to the greatest extent.June 2024 marked the 23rd National "Work Safety Production Month". Closely adhering to the theme of the

event "Everyone Talks about Safety Everyone Can Respond to Emergencies—Keep the Life-saving

Passages Unobstructed" our company organized planned and carried out a series of themed activities. These

activities included safety commitment oath-taking the "Everyone Talks about Safety—Pre-shift Meeting

Competition" the Comprehensive Safety Skills Contest and the Emergency Evacuation and Escape Drill.These activities effectively enhanced employees' awareness of work safety production and their emergency

response capabilities.FIRST 2024 ESG Report 69Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

Employee Situation Data Unit 2024 2023 2022

Total Number of Employees Persons 4676 4549 3663

By Gender

Number of Male Employees Persons 3532 3431 2777

Number of Female Employees Persons 1144 1118 886

By Age

Number of Employees Under 30 Years Old Persons 1241 1230 1048

Number of Employees Aged 30 - 50 Persons 3103 3102 2434

Number of Employees Over 50 Years Old Persons 332 217 181

Amount Invested in Employees' Workers'

10000 RMB 328.11 177.56 155.98

Compensation Insurance

Amount Invested in Employees' Workplace

10000 RMB 3.48 3.37 3.3

Safety Liability Insurance

Coverage Rate of Employees' Workers'

%100100100

Compensation Insurance

Coverage Rate of Employees' Workplace

Safety Liability Insurance (Chemical Industry % 95.76 89.11 85.86

Base)

Number of Employee Training Sessions Times 1073 808 460

Amount Spent on Employee Training 10000 RMB 108.34 82.65 47.13

Coverage Rate of Employee Training % 100 100 100

FIRST 2024 ESG Report 70Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

For a globalized technology-led listed company sustained and stable development is an everlasting goal—yet a

diverse talent team remains the vital engine for its enduring prosperity. FIRST adheres to the values of equality

inclusion and diversity respects and appreciates the individual differences and unique talents of employees and is

committed to providing a development environment for continuous growth for every employee.The premise of working together to create value is to respect the uniqueness and diversity of every employee. An

inclusive and equal workplace culture is an important manifestation of FIRST's inclusive culture. FIRST firmly opposes

any form of discrimination and promises to eliminate discrimination against employees in recruitment promotion and

compensation based on factors such as race skin color age gender sexual orientation ethnicity disability

pregnancy and religious belief. The Recruitment Management Method standardizes the procedures and standards for

talent recruitment selection and employment. Recruitment announcements are made through internal platforms the

company's official website and external diverse recruitment platforms to attract talents and conduct fair and just talent

selection. The company strictly prohibits forcing employees or job applicants to undergo any medical examinations

with discriminatory purposes.To effectively protect the basic rights and interests of each employee we have formulated a series of management

policies including the Policy on Prohibition of Compulsory Pregnancy Testing Child Labor Remediation & Prevention

Procedure Forced & Compulsory Labor Elimination Policy Female Employee Labor Protection Management Method

Freedom of Association & Right to Collective Bargaining Framework Migrant & Foreign Worker Management System

Anti - discrimination Management Method Prohibition of Prison Labor Regulations Harassment-Free Workplace

Management Procedure etc. to ensure that there is no use of child labor forced labor discrimination harassment

etc. in recruitment compensation training promotion and dismissal.FIRST clearly stipulates the principles of open recruitment and fair competition in the Human Resources

Control Procedure Recruitment Management Method Intern Management Method and Internal

Recommendation Management Method and strictly prohibits discriminatory behavior in the recruitment process

in accordance with the law.Through recruitment channels such as the company's website the company's recruitment WeChat official

account third - party online recruitment websites campus job fairs large - scale on - site recruitment fairs and

internal referral platforms the company ensures that recruitment position information is open and transparent

realizes the sharing of recruitment information and resources and provides equal employment opportunities for

job seekers; the interview and employment process is fair avoiding any form of direct or indirect discrimination.A global recruitment team has been established with a reasonable gender ratio and age structure among team

members fully considering the personalities and career development demands of interviewees. Especially for

the introduction of overseas employees it supports overseas talent recruitment and cross - regional

communication and exchange ensuring that overseas employees are treated fairly and that language and

cultural considerations are taken into account during the recruitment process. During the reporting period we

had 205 ethnic minority employees 1 Japanese employee 207 Vietnamese employees and 172 Thai

employees.FIRST 2024 ESG Report 71Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST has formulated the Social Accountability Management

Manual. Centered around the SA8000 certification system standards

26 new management system documents have been developed. A

total of 8652 person - times of training have been carried out with a

cumulative training duration of 17204 hours. To ensure that

employees of the company its subsidiaries and overseas bases can

fully understand recognize and implement the requirements of the

social responsibility management system we conduct systematic

training and practice to promote voluntary compliance with SA8000

standards and relevant social responsibility laws and regulations.FIRST focuses on continuously improving the working environment and labor conditions strengthening labor

protection and effectively safeguarding employees' rights and interests. It integrates the concept of social

responsibility into daily operations. Through a series of measures it has effectively enhanced employees'

awareness and practical ability regarding social responsibility optimized internal management processes

further improved the working environment and employee welfare guarantees and laid a solid foundation for the

company's sustainable development.FIRST has formulated and strictly implemented regulations such as the Management Regulations on

Foreign Workers and Migrant Workers and the Anti - discrimination Management Method. These regulations

ensure that employees are not discriminated against during the employment process due to gender ethnicity

age marital status physiology surname region religious belief etc. and safeguard employees' equal

employment rights. During the reporting period 205 ethnic minority employees 70 disabled employees and

380 foreign employees were hired and no discrimination incidents occurred.

FIRST has formulated the Policy on Prohibition of Compulsory Pregnancy Testing to effectively protect the

employment rights and interests of female employees; the Child Labor Remediation & Prevention Procedure

to protect minors; the Forced & Compulsory Labor Elimination Policy to respect the right of labor autonomy;

the Female Employee Labor Protection Management Method to clarify the prohibited labor for female

employees and protection measures during menstruation pregnancy childbirth and lactation; the Freedom

of Association & Right to Collective Bargaining Framework to respect the rights of different religions and

freedom of belief; and the Harassment - Free Workplace Management Procedure to clearly protect the

personal safety of vulnerable groups.FIRST 2024 ESG Report 72Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

? All bases are equipped with dedicated lactation room providing private and quiet spaces for female employees

during the lactation period.? Accessible parking spaces ramps restrooms and elevators are provided to enable people with disabilities to move

around freely.? Employee activity rooms basketball courts gyms yoga rooms etc. are created to enrich employees' recreational

lives.? Activities such as the "Employee Lecture Hall" "Xinya Program" "Qingteng Program" - related training and thematic

reading clubs and organization of new and old employee symposiums are carried out to help young employees

better integrate into the organization.FIRST 2024 ESG Report 73Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

We have formulated management regulations such as Trade Union Member Welfare Management

Method Trade Union Points Management Method and Workers' Congress. We practice democratic

management and safeguard employees' legitimate rights and interests. The company has been

honored with the National May 1st Labor Award issued by the All - China Federation of Trade Unions.In 2024 we held the Workers' Congress 4 times in total with a cumulative expenditure of 4.4534 million

RMB for trade union funds.The trade union organization consists of 1 chairperson 1 vice - chairperson 11 committee members 2

staff 1 accountant and 1 cashier. The trade union chairperson has set up a trade union funds review

committee and a trade union women workers' committee. For the smooth operation of trade union work

it is divided into 8 trade union groups with 1 trade union liaison in each group and each trade union

committee member is assigned to be responsible for one trade union group. Company employees join

the trade union voluntarily. The trade union strictly fulfills its functions of safeguarding construction

participation and education representing and safeguarding the legitimate rights and interests of

employees.The trade union cares about employees' work and life harmonizes labor - management relations at

work and promotes employees' participation in management innovation labor competitions and the

selection and commendation of trade union activists. The trade union pays special attention to the

protection of female employees' rights and interests establishing "Mami Huts" and purchasing special

disease insurance for female employees.FIRST values employees' well-being promotes work-life balance and fosters a happy fulfilling workplace through

diverse interest groups and cultural activities.? Interest Group Working Mechanism We have established the Trade Union Interest Activity Group Management

Framework under the auspices of the corporate trade union. This initiative driven by employee interests fosters

mental well-being and contributes to organizational harmony.? Interest Groups: Reading Interest Group Basketball Interest Group Swimming Interest Group Badminton Interest

Group.? Cultural Activities: We organize diverse seasonal and festival-based activities to enhance employee engagement

including:Lantern Festival riddles International Women s Day floral workshops Children s Day family events

Mid-Autumn Festival mooncake-making sessions. Additionally an annual interdepartmental sports tournament

promotes teamwork and strengthens cross-site camaraderie.FIRST 2024 ESG Report 74Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST strictly complies with laws and regulations such as Labor Law of the People's Republic of China Labor Contract

Law of the People's Republic of China Employment Promotion Law of the People's Republic of China and relevant

laws and regulations of overseas operation sites. It actively responds to international initiatives and standards such as

Universal Declaration of Human Rights Conventions of the International Labor Organization and UN Guiding

Principles on Business and Human Rights attaches importance to and respects the basic rights and interests of all

employees and adopts a "zero - tolerance" attitude towards relevant infringement incidents. The company has

formulated management systems procedure documents and operation processes including Employee Handbook

which provide detailed and clear descriptions of employees' occupational safety and development working conditions

labor relations etc. It has also formulated special labor protection systems covering all operation sites of the company

in terms of prohibition of forced labor and prison labor prohibition of child labor reasonable working hours and overtime

compensation anti - harassment and abuse.During the reporting period FIRST did not have any cases of child labor misuse forced labor humiliation harassment

or security - related violence. Over the past three years FIRST has not had any layoff events that had a significant

impact on employees or major mergers or acquisitions that had a substantial impact on most employees.FIRST strictly follows the human rights and labor standards set by the United Nations Global Compact (UNGC) the

International Labor Organization (ILO) and the Responsible Business Alliance (RBA) supports and respects the

requirements of relevant local laws and regulations and is committed to promoting the protection of human rights and

labor rights and interests in its own operations and value chain caring for and safeguarding the legitimate rights and

interests of all stakeholders including employees workers in the supply chain business partners etc.FIRST has formulated system documents such as Management

Specific Content

Child Labor Remediation & Prevention Procedure Procedure

Child Labor Remediation Management Procedure Develop Major Hazard Source Identification & Control

Voluntary Overtime Management System and System Safety Inspection & Hidden Hazard

Adolescent Worker Protection Procedure at the group Rectification System Safety Risk Assessment System

level and has formed corresponding management and workflows. Form occupational health & safety risk

control list conduct key control for workplace safety.systems and procedures at the operation sites.Annually identify risks update workplace risks and

Adhering to the human rights and labor protection

control focuses. Quarterly safety inspections to

policy of "protect labor respect human rights operate enhance risk management and protect employees'

with integrity and give back to society" it incorporates rights.relevant human rights and labor standards in local

Track risk effectiveness quarterly control high - risk

laws into internal processes and guidelines projects to prevent labor & human rights risks.establishes a human rights and labor rights and

Set annual human rights management objectives per

interests management framework led by the general

SA8000. Track monthly/quarterly.manager of each manufacturing base and coordinated

by human resources and various functional Incorporate into Social Accountability Management

departments and implements normalized risk Manual and KPI as evaluation basis.assessment and due diligence investigation

Internal audit reviews labor environment health &

management measures to minimize the potential safety risks annually.impact of human rights and labor risks.Regularly carry out external third - party audits accept

For interns dispatched employees and contractor customer audits and ensure system operation.employees working for FIRST FIRST implements the Develop Employee Appeal Handling & Feedback

same personnel management requirements as for Procedure embed appeal channels in employee

formal employees to ensure the legitimate rights handbook establish comprehensive appeal plans.interests and physical and mental health of every Develop Important Employee Relationship Negotiation

worker. During this reporting period all manufacturing Method.bases and operating locations of FIRST had no risk of

violating the rights to freedom of association or For issues HR & responsible units investigate propose

collective bargaining nor were there any cases of measures. Organize emergency meetings if needed

forced labor or child labor employment. report major labor issues formulate improvement plans.FIRST 2024 ESG Report 75Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

Theme Relevant Policies and Objectives Management and Mitigation Measures

? Recruitment Management Method Forced &

Compulsory Labor Elimination Policy Employee ? Develop standard recruitment/separation

Freedom of Separation Management Method procedures.Employment ? Eliminate any form of forced/bonded labor. Work ? Employees initiate separation per process

Choice based on voluntariness. Prohibit charging deposits. and leave with reasonable notice.Employees freely choose to renew contracts to

protect rights.? Child Labor Remediation & Prevention ? EHR system auto - identifies ID/age to

Prohibition of Procedure A0 Version prevent illegal use.Child Labor ? Strictly prohibit child labor verify ages during ? Form recruitment ID - age checklist double -

recruitment. check during employment.? Plan production/rest reasonably—EHR

warns for overtime.? EHR monitors key dept. overtime reminds

? Voluntary Overtime Management System A0

Working Hours management. Version Attendance Management Method

? Evaluate labor intensity according to labor

? Comply with laws ensure sufficient rest.quota standards use automated procedures

to continuously optimize work intensity

provide rest places for work - rest balance.? Leave Management Method Salary Payment ? Formulate attendance/leave/salary methods

Wages and Management Regulations A0 Version to guarantee legal leave/salary benefits.Benefits ? Ensure salaries comply with laws (minimum ? Annually survey living costs to ensure

wage overtime pay statutory benefits). salaries exceed living costs.? Reward and Punishment Management

? Formulate reward - punishment rules clarify

Method Employee Handbook

Humanitarian processes.Care ? Prohibit corporal punishment coercion ? Strengthen training and publicity via multiple

verbal/psychological/gender - discriminatory

channels to avoid inhumane behavior.measures or threats.? Harassment - Free Workplace Management

Procedure A0 Version

Anti - ? Ensure equal employment and prohibit ? Standardize and strictly implement relevant

discrimination in all processes—including systems and processes.discrimination

and Anti - recruitment promotion and compensation— ? Provide unobstructed reporting and appeal

harassment based on race color religion sexual orientation channels promptly detecting and stopping

gender age physical ability political belief corresponding matters.union membership marital status or other

grounds.? Establish organizations such as Workers'

? Freedom of Association & Right to Collective Congress and trade unions to ensure

Bargaining Framework trade unions workers' employees wishes are reflected.Congress

Freedom of ? Standardize welfare committee system

Association ? Guarantee employees rights to regularly elect employee representatives and

associate/bargain collectively by law. trade union committee members conduct

Employees reflect issues via elections workers' congress for democratic decision -

communicate work benefits without retaliation. making and organize various trade union

and welfare committee activities.FIRST 2024 ESG Report 76Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST builds diverse and unobstructed communication bridges optimizes and adjusts according to employees'

opinions and suggestions creating a more equal open and harmonious working and communication environment

and encouraging employees to freely and fully express their opinions.To promptly understand employees' various needs and voices including those on compensation benefits and

working environment within the country the group subsidiaries and each production base have respectively

established trade union organizations and diverse communication channels—OA mailboxes OA processes opinion -

feedback QR codes suggestion boxes and public telephones. This ensures employees' opinions and suggestions

are promptly conveyed to management providing a basis for improvement. Overseas FIRST has not only established

its own trade unions but also regularly holds communication mechanisms in line with overseas characteristics and

cultures. Employees are encouraged to raise work - and life - related issues and consultations and discussions are

carried out with an equal democratic attitude to find fairer more reasonable solutions.After receiving employees' feedback the company follows the established internal handling process for feedback and

follow - up promptly tracking relevant situations to ensure every piece of feedback gets a response and every matter

is addressed.FIRST respects employees' right to free expression. Whether positive or negative feedback is collected with an open

inclusive attitude. It faces up to problems actively seeks solutions and optimization approaches and promotes closed

- loop improvement of internal management.Appeal materials should detailedly describe the content and submit

written materials and supporting documents.[The entire appeal - handling process must follow the avoidance

principle of the actor (i.e. the appeal object) of the appeal incident.]

Relevant departments verify the materials and decide whether to

accept the appeal within three working days then feedback the result

to the appellant.For accepted appeals complete the investigation and confirmation

within seven working days. Handle them per the company s rules

following fairness and justice and form a handling report.The person in charge of the responsible department shall within three

working days provide written feedback on the handling result to the

appellant ending the appeal process.FIRST 2024 ESG Report 77Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST strictly complies with relevant laws and regulations such as Labor Law of the People’s Republic of China

Labor Contract Law of the People’s Republic of China Employment Promotion Law of the People’s Republic of

China and Protection Law for Minors of the People’s Republic of China and has formulated internal systems such

as Employee Handbook Human Resources Control Procedure Compensation Management Method and Welfare

Management System. All regulations and systems of FIRST involving all employees have been negotiated by the

trade union and adopted by the Workers' Congress.FIRST adheres to legal and compliant employment and handles social insurance and housing provident fund for

employees in accordance with national and local laws and regulations of each subsidiary. It has strictly achieved 5

100%: Labor Contract Signing Rate: 100% Social Insurance Coverage: 100% Housing Provident Fund Participation:

100% Statutory Holiday Benefits Coverage: 100% and Regulation Publicity Rate 100%. In addition FIRST has

established a multi - dimensional incentive system rest and leave guarantee system and various supplementary

welfare systems providing a solid guarantee for employees to work with peace of mind and the harmonious

development of the enterprise. In 2024 our compensation and benefits expenditure totaled 801.64 million RMB.Compensation and benefits 2024 2023 2022

Employee compensation (ten thousand RMB) 80164.12 74731.73 59242.70

Including

Employee stock ownership plan incentive fund (ten thousand RMB) 6957.07

Photovoltaic Business Partnership Plan special fund (ten thousand RMB) 4995.64 5492.96FIRST follows the compensation concept of “adhering to fairness and order adapting to the market environmentreflecting the value of talents and playing an incentive role” to promote the sustainable development of the companyand achieve a win - win situation for employees and the company; adheres to “taking the value of the position as thecore guided by performance and contribution” using the labor value of the position ability contribution andperformance results as the main basis for compensation distribution; adheres to the interconnection of “abilitycontribution performance and wage level” establishes a normal wage adjustment and promotion system andencourages employees to become talents based on their positions; adheres to the principle of “orderly andsustainable development” takes the growth of the company’s innovation ability as a premise links employees’

compensation levels and overall returns shares responsibilities and returns and realizes the common development of

employees and the organization. FIRST continuously improves the performance appraisal system compensation and

benefit system training management system and employee development and promotion channels using a

combination of pushing and pulling methods to guide and motivate employees to improve and develop achieving the

goal of employees growing in work reaping in growth and developing harmoniously with the company.Except for the chairman and independent directors we do not provide directors' remuneration. Directors who also hold

senior management positions or other positions in the Company will be compensated according to the remuneration

system of their respective positions. The supervisors are not entitled to any remuneration but if they hold other

positions in the Company. They will receive remuneration according to the remuneration system of those positions.The annual compensation of the Company's senior management personnel comprises two components: a basic

monthly salary and an annual performance-based bonus. The performance-based bonus is paid in the following year

and its amount is determined based on the Company's performance and the individual's work contributions as

evaluated by the Remuneration and Evaluation Committee. The remuneration of directors and senior managers is

reviewed by the Remuneration and Evaluation Committee which submits its recommendations to the Board of

Directors for approval. The Board of Supervisors reviews the remuneration of supervisors which is submitted to the

Board of Shareholders for approval.FIRST 2024 ESG Report 78Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST has formulated the Welfare Management System for all domestic employees standardizing the company's

welfare measures and establishment criteria to further enhance employees' sense of belonging and cohesion.Meanwhile combining the consumer levels and policy settings of each overseas operation location and with reference

to the Welfare Management System for domestic employees the company provides local employees with statutory

benefits and special benefits. The Welfare Management System also includes welfare provisions for senior executives.Combining market benchmarking and job attributes the company continuously optimizes the welfare benefits for

senior executives to ensure that the senior executive welfare system has comprehensive competitiveness.The company has a complete welfare system. In addition to statutory benefits we also provide employees with health -

safeguarding welfare life - safeguarding welfare incentive welfare festival and cultural construction welfare etc.FIRST pays attention to the construction and management of leisure and

entertainment places such as employee reading rooms billiard rooms table

tennis rooms and open - air rest areas. It organizes and carries out activities

such as employee fun sports meetings and cultural and artistic evenings. In

2024 a total of 21 various cultural and sports activities were organized with

more than 2200 employee participations effectively relieving employees' life

and work pressure.We provide free warm - hearted work meals and comfortable shuttle bus

services. Responding to employees' voices we introduce the "COSTA" coffee

bar and adopts the mode of trade union points for gifts giving employees

special preferential policies. We constructs the FIRST Employee Home - "Fu

Ren Ju" with an area of 43400 square meters equipped with standard

badminton courts basketball courts gyms reading rooms and childcare

facilities for employees' children which can provide a livable and comfortable

home for 1300 employees.FIRST cherishes every colleague and worker who has accompanied us through

trials and tribulations and grown together. We hold an annual commendation

conference respectively awarding the Five - Year Award for Loving the Factory

and Devotion to Work the Ten - Year Award for Loving the Factory and Devotion

to Work and the Fifteen - Year Award for Loving the Factory and Devotion to

Work to senior employees who have continuously served for five ten fifteen

twenty years and above. It establishes evaluations such as advanced collectives

advanced teams 5S excellent units Group Stars excellent employees and

employee rookies conducting evaluations and commendations for those with

outstanding performance and achievements in work.In 2024 we selected a total of 2 advanced collectives 9 advanced teams 1 5S excellent unit 7 Group Stars 90

excellent employees 10 employee rookies 120 employees who won the Five - Year Award for Loving the Factory

and Devotion to Work 53 employees who won the Ten - Year Award for Loving the Factory and Devotion to Work

42 employees who won the Fifteen - Year Award for Loving the Factory and Devotion to Work and 7 employees

who won the Twenty - Year Award for Loving the Factory and Devotion to Work.FIRST 2024 ESG Report 79Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

Benefit

Benefit Content Specific Measures

Category

Social Insurance and Housing Pay five social insurances and one housing provident fund for employees

Provident Fund

Statutory Holidays and Annual

Statutory Provide statutory holidays and paid annual leave

Leave

Benefits

High - temperature Protection High - temperature allowance summer cooling - sending activities

Wedding and funeral leave maternity leave paternity leave parental leave

Other Statutory Benefits etc.Health Check - up Provide free regular health check - ups

Employer’s Liability Insurance Purchase employer’s liability insurance for employees

Health -

safeguarding Cooperate with local hospitals doctors have regular consultations Cooperative Hospital

Benefits providing medical treatment consultation and medicine - dispensing Outpatient Service services

Medical Convenience Service Assist employees in seeking medical treatment provide green channels

Festival Benefits Festival allowances birthday gifts employment anniversary gifts etc.Festival and Team - building Activities Department team - building activity funds trade union activity funds

Cultural

Construction Hospitalization condolence money funeral condolence money retirement Employee Care

Benefits farewell parties and souvenirs

Trade Union Activities Recuperation activities summer cooling - sending etc.Night Shift Allowance Provide allowances for night shift work according to regulations

Night Snack Subsidy Provide night snack subsidies

Incentive Recognition and bonus distribution for employee rookies excellent

Benefits Excellent Employee Rewards employees excellent groups and veteran employees’ factory - loving and

dedication awards

Professional Title and Talent Professional title identification talent identification apply for talent

Subsidies introduction subsidies and living subsidies

Provide high - quality environmentally friendly finely decorated multi -

room dormitories equipped with laundry rooms gyms board game rooms

Employee Dormitory restaurants supermarkets basketball courts badminton courts

underground garages and charging piles

Life -

Free Work Meals Provide self - operated canteens in both work areas and living areassafeguarding

Benefits Operate multiple urban shuttle buses formulate reimbursement standards

Commuting Shuttle Bus and management methods for home - visiting travel expenses

Provide living convenience facilities such as supermarkets restaurants

Living Supporting Facilities and gyms

Academic Qualification and Establish incentive mechanisms for vocational training professional titles

Professional Qualification

Educational professional qualifications and academic education

Improvement

and

Developmental Support nearby enrollment cooperate with the education bureau to hold

Children’s Education Support

Benefits recruitment policy interpretation seminars and consultation meetings

Training and Development Provide vocational training management skill - improvement courses etc.Assist in handling retirement procedures hold retirement farewell parties

Retirement Care and distribute retirement souvenirs

Other Benefits

Expatriate Employee Benefits Provide expatriate employees with home - visiting leave and subsidies

FIRST 2024 ESG Report 80Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST prioritizes talent cultivation and development having established comprehensive employee promotion

pathways and annually updated systematic training programs. By integrating digital empowerment tools we

continuously enhance employees' professional skills and comprehensive competencies enabling each individual to

achieve career success while contributing to FIRST's sustainable growth with strong human capital.A fair and unimpeded promotion system is essential for long-term mutual development between talent and the

enterprise. We implement an annual performance evaluation mechanism across all global manufacturing bases and

offices featuring: Multi-dimensional assessment through organizational performance departmental KPIs individual

performance evaluations duty fulfillment reviews 360° feedback and surveys. This comprehensive assessment

serves as a basis for employees' promotion training and salary adjustment.FIRST has formulated FIRST Professional Rank Evaluation Management Method establishing three major

development channels covering all employees: Management (M) Professional (P B O T) and Operational (F). This

framework clarifies development paths and promotion criteria for all positions ensuring equitable advancement

opportunities. Complementary long-term incentive plans further motivate employees and enhance talent retention.Management Operational

Professional Positions

Positions Positions

M-Series P-Series B-Series O-Series T-Series F-Series

Management R&D/Testing Sales Admin/ IT Frontline

Process Procurement HRFinance/ Operations

Technology Legal

Mechanical/ Production/Q

Electrical uality

FIRST 2024 ESG Report 81Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST Corporate University adheres to the talent development principles of

"Humility Diligence Integrity and Efficiency" dedicated to cultivating

competitive innovative talents and building a talent pipeline for the company.Through FIRST Corporate University we have established a tiered categorized

and all-employee-inclusive training system. This system empowers frontline staff

junior middle and senior management through specialized programs online

courses external training one-on-one mentorship and job rotations. In recent

years we have launched: Frontline Team Leader Program [F-Series] "Xinya"

Program [Graduates] "Qingmiao" Program [Key Employees] "Qingteng"

Program [M-Series Management]. These initiatives create a robust talent

echelon providing strong human capital support for the company's rapid and

healthy development.FIRST has developed a distinctive training system centered on corporate values offering comprehensive and diverse

courses for employees:

New Employees: “Xinya” Program for fresh graduates focusing on onboarding integration and empowerment.Mandatory orientation training and general knowledge courses for all new hires.General Employees: Corporate University and Employee Lecture Hall provide regular professional development

through open courses and book clubs. Role-specific vocational and skills training arranged based on job functions.Key Employees: Customized professional training tailored to job skills and individual needs Leadership programs

(“Xinya” program → “Qingmiao” program → Qingteng” program) for junior supervisors business core staff middle

managers and senior executives. Resources for continuous self-development of experienced employees.FIRST 2024 ESG Report 82Occupational Health and Safety (OHS) Diversity Equity and Inclusion (DEI) Human Rights and Employee Rights Protection

Employee Development and Training Social Responsibility

FIRST embraces its mission and responsibilities by not only generating profits and fulfilling legal obligations to

shareholders and employees but also committing to consumers communities and the environment. We prioritize

human values in production processes and emphasize contributions to environmental protection consumer welfare

and social development. Adhering to national laws and regulations such as the Charity Law of the People's Republic

of China and the Public Welfare Donations Law we actively support charitable causes assist disadvantaged groups

and donate through platforms like the Red Cross Charity Federations and Education Funds. During the reporting

period we contributed 120.2 thousand RMB to social welfare initiatives.Social Contribution Data Unit Data Description

Charitable Donations RMB 10000 12.02 /

Volunteer Participation Person-times 148

148 Party members participated in "Learn from Lei

Feng" activities in 2024.Volunteer Hours Hours 148

Rural areas are complex ecosystems integrating natural social and economic features with multifaceted roles in

production living ecology and culture. Supporting China’s Rural Revitalization Strategy FIRST leverages its

photovoltaic expertise to establish sustainable poverty-alleviation mechanisms including donations of distributed PV

systems and purchases of agricultural products from underdeveloped regions like Longyou County (Lishui) and

Baiyu County (Sichuan). In 2024 we invested 92.8 thousand RMB in rural revitalization efforts.FIRST fosters deep partnerships with universities to create off-campus

practice bases and innovate talent development models for the PV

industry. Through joint training internships and field visits we enhance

students’ practical experience while upskilling employees. As of the

reporting period we collaborated with: Zhejiang University Zhejiang

University of Technology Hangzhou Dianzi University Ningbo

University Zhejiang A&F University Zhejiang University of Science and

Technology. In 2024 we provided 192 students with social practice

opportunities significantly enhancing their understanding of the

photovoltaic industry and related roles.We also maintain long-term partnerships with universities and

professional research institutions leveraging joint training programs to

upgrade employees’ professional knowledge and practical capabilities.In the reporting period 48 management personnel participated in

specialized training courses to continuously refine their knowledge

systems through structured learning.FIRST 2024 ESG Report 83Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

The company strictly complies with all corporate governance laws and regulations. In accordance with the latest

updates to relevant laws regulations and institutional requirements we continuously revise improve and establish

corporate governance systems to clearly define responsibilities and authorities for decision-making execution and

supervision thereby enhancing corporate compliance and better protecting shareholder rights. As of now the

company has established governance systems including: Articles of Association Rules of Procedure for Shareholders'

Meetings Rules of Procedure for Board Meetings Rules of Procedure for Supervisory Board Meetings Independent

Director Working System Working System for Special Meetings of Independent Directors Related Party Transactions

Management Policy Fund Raising Management Policy External Guarantees Management Policy and Shareholding

and Trading Policy for Directors Supervisors and Senior Management.The highest authority of the company.The supervisory body. Responsible for

Follows the regulations outlined in the

supervising business development

Company Law Articles of Association

Sharehold Board of

related transactions management and

Rules of Procedure of the

Supervisors use of raised funds etc. to promote

Shareholders' meeting and other ers'

sustainable development of the

applicable requirements. These meeting

company.procedures guarantee that all

shareholders particularly minority

shareholders have equal status and

legitimate rights and interests.Strategy The particular working body set up by the

and Board and is mainly responsible for the

Strategy and

Sustainable company's medium and long-term

Sustainability

Developme development strategy ESG work major

Committee

nt investment and financing issues to study

Daily decision-making body. Its Committee and put forward suggestions.responsibilities include implementing

the resolutions of shareholders'

meeting deciding on business plan

Established by the Board responsible for

and internal organization formulating

Board of the communication between internal and

the profit distribution and investment

Directors Audit external audit review of internal control and financing plans appointing and

Committee system proposing the appointment of dismissing senior management

external audit institutions review of

personnel and managing the

financial information and disclosure etc.company's information disclosure and

other affairs.The operating mechanism established by

the Board of Directors to select and

Nomination recommend the selection criteria and

Committee procedures for the appointment of

directors and executives of the company.In charge of the company's operation

under the board of directors'

leadership responsible for Set up by the Board of Directors responsible

General

implementing the resolutions of the Remunerat for formulating the remuneration scheme and

Manager

board of directors and presiding over ion and assessment standards of the company's

the company's production operation Evaluation directors and senior managers and

and daily management. Committee conducting the assessment and submitting it

to the Board of Directors for decision.FIRST 2024 ESG Report 85Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

Board diversity is designed to pool multifaceted expertise drive corporate innovation and advance sustainable

progress. FIRST's directors come from diverse industry backgrounds spanning technology finance law and

management forming a multidimensional mix of gender age experience and professional knowledge. This

diversified structure enhances decision-making comprehensiveness and accuracy improves overall board

effectiveness and fosters cross-disciplinary thinking bringing fresh perspectives and strategic vision. We firmly

believe board diversity is a vital driver for sustainable development maintaining competitive advantage in dynamic

markets.The Board comprises 7 directors including 3 independent directors (43% representation). Beyond the Board FIRST

has: Supervisory Board: 3 members (2 shareholder representatives) including 1 female supervisor Senior

Management: 7 executives (3 female 43% representation)

Professional

Name Position Gender Age Nationality Committee Roles

Background

Strategy & Sustainability Committee

Lin Senior Engineer

Chairman Male 62 China (Chair)

Jianhua Chemical Machinery

Nomination Committee

Professor-level

Zhou Engineer Remuneration and Evaluation

Director Male 43 China

Guangda Chemical Committee

Engineering

Xu Femal

Director 54 China Senior Accountant Strategy & Sustainability Committee

Jianqin e

Business

Lin

Director Male 36 China Administration Audit Committee

Tianyi

Materials Science

Audit Committee (Chair)

Liu Independent Femal Accounting

54 China Remuneration and Evaluation

Meijuan Director e Professor

Committee

Li Independent Polymer Chemical Nomination Committee (Chair)

Male 66 China

Bogeng Director Engineering Strategy & Sustainability Committee

Remuneration and Evaluation

Yang Independent Political Science Committee (Chair)

Male 55 China

Zhijian Director Lawyer Audit Committee

Nomination Committee

FIRST 2024 ESG Report 86Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

The Board has established the Remuneration and Evaluation Committee as a specialized body responsible for

formulating reviewing and assessing the compensation policies and performance evaluations of directors and senior

management. In accordance with the company's specific circumstances the Working Rules of the Board

Remuneration and Evaluation Committee have been enacted. The committee determines compensation packages for

directors and senior executives based on company's long-term strategic objectives benchmarking against industry

peers of similar scale and regional presence and provide appropriate allowances for independent directors. Besides

the compensation process strictly complies with relevant laws regulations and corporate governance requirements to

ensure rationality and compliance.Shareholders' Meetings Board Meetings

Meetings held: 6 Meetings held: 17

Proposals reviewed/adopted: 25 Average attendance: 100%

Proposals reviewed/adopted: 75

Three

Govern

ance

Bodies

Supervisory Board Meetings Other Governance Meetings

Meetings held: 14 Board committee meetings: 15

Average attendance: 100% Independent directors' special meetings: 1

Proposals reviewed/adopted: 35

FIRST 2024 ESG Report 87Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

We attach great importance to communication and engagement with investors consistently treating ESG topics as a

critical component of investor relations management. To implement the relevant requirements of the Shanghai Stock

Exchange Listed Company Self-Regulatory Guidelines No. 14 - Sustainability Reporting (Trial) we proactively

conduct ESG-related investor engagement through multiple channels and formats.During the reporting period we prepared and disclosed both Chinese and English versions of our ESG report

comprehensively demonstrating the company's practices and achievements in ESG. Meanwhile we promptly

released ESG-related updates through our official website WeChat official account and the SSE platform to ensure

information transparency and accessibility. Furthermore we engaged in in-depth discussions with investors on ESG

topics through shareholders' meetings earnings presentations roadshows and analyst conferences promptly

addressing investor concerns and listening to market feedback.Going forward we will continue to reference global sustainability disclosure initiatives and best practices to identify

ESG-related risks and opportunities refine management policies and action plans and provide investors with more

comprehensive and accurate information. We are committed to continuously improving ESG governance and

disclosure quality dedicated to creating long-term value for investors.We place paramount importance on information disclosure. In strict compliance with laws regulations and regulatory

requirements including the Company Law of the People's Republic of China the Securities Law of the People's

Republic of China the Corporate Governance Code for Listed Companies the Guidelines for Investor Relations

Management of Listed Companies and the Shanghai Stock Exchange Listed Company Self-Regulatory Guidelines

No. 1 - Standardized Operations we have established our Information Disclosure Management Policy to ensure the

authenticity accuracy and timeliness of disclosures thereby safeguarding the legitimate rights and interests of all

shareholders.The company releases periodic reports on schedule disclosing comprehensive financial

Periodic Reports data business development market conditions and risk factors for each reporting period

providing investors with complete and timely information.For material events such as routine related-party transactions investment decisions and

Interim changes in shareholder equity the company promptly issues interim announcements to

Announcements ensure investors receive timely updates. In 2024 the company released 112 interim

announcements.The company actively engages with investors through regular earnings presentations and

investor conferences to address market concerns. Multiple disclosure channels –

including the official website investor relations platforms and WeChat official account –

Investor Relations ensure broad coverage. A dedicated investor email and hotline facilitate feedback

enhancing transparency. In 2024 the company held 7 earnings

presentations/conferences and conducted over 100 institutional investor meetings

(online/offline).The company enforces strict internal reviews to ensure all disclosures are truthful

Disclosure Quality

accurate complete and non-misleading maintaining full compliance with regulations.The company proactively discloses ESG information having published annual CSR

Social

Reports or ESG Reports for four consecutive years demonstrating its sustainability

Responsibility

commitment.FIRST 2024 ESG Report 88Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

During the reporting period the company formulated and revised several regulatory documents including the Articles

of Association the Shareholding and Trading Policy for Directors Supervisors and Senior Management and the

Shareholder Dividend Return Plan for the Next Three Years (2024-2026). These updates maintained strong

continuity and stability aligning with the company's long-term development strategy while demonstrating our

commitment to shareholder value thereby fostering and enhancing positive relationships with shareholders.Increase by transferring Dividend payout Cash dividend

Year

per 10 shares (shares) per 10 shares (RMB) (tax included) (RMB)

202241.5199731787.05

202342.6483970875.44

2024/2.6677559390.56

Cumulative cash dividends in the past three years 1361262053.05

Note: The 2024 profit distribution proposal is subject to approval at the 2024 Annual General Meeting of Shareholders before implementation.Our current core business operations commercial activities and technological development do not involve cutting-

edge fields with significant technology ethics sensitivities such as life sciences or artificial intelligence. Consequently

we do not directly face material risks or challenges related to technology ethics. As stipulated in the SSE Guidelines

No. 14 technology ethics issues primarily apply to enterprises whose technology development application or data

usage may substantially impact privacy protection algorithmic fairness AI ethics and related areas. While

technology ethics does not currently constitute a core component of FIRST's ESG management given our business

scope we maintain a steadfast commitment to ensuring the compliance and ethical integrity of all technological

applications.We strictly comply with China's Personal Information Protection Law implementing comprehensive controls over

employee personal data (including biometrics like facial recognition). Through encryption access controls and data

anonymization we protect sensitive information while conducting regular compliance audits and training. All data

processing follows principles of legality legitimacy and necessity. For any future technology ethics-related business

we will establish governance frameworks with embedded ethical review mechanisms to fulfill CSR obligations.We consistently comply with the Small and Medium-sized Enterprises Promotion Law of the People's Republic of

China and the Regulations on Guaranteeing Payments to Small and Medium-sized Enterprises upholding principles

of equality and fairness in engagements with SME suppliers and partners. During the reporting period FIRST strictly

followed the National Enterprise Credit Information Publicity System requirements to disclose payment records with

SMEs in a timely manner. As of the reporting date the company recorded zero incidents of overdue payments to

SMEs.Within our supply chain management we implement reasonable payment terms to fully protect SME suppliers'

legitimate rights while continuously optimizing internal payment processes to enhance supply chain transparency.These efforts underpin our commitment to fostering long-term stable partnerships. Moving forward we will uphold

fair practices compliance and corporate social responsibility

FIRST 2024 ESG Report 89Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

The risk management philosophy serves as the cornerstone of our risk management framework reflecting the

company's strategic emphasis on ESG risk management. We adhere to a prudent forward-looking and

comprehensive risk management approach integrating risk management into daily operations and strategic planning.This underscores its critical role in achieving sustainable development safeguarding shareholder interests and

enhancing brand reputation and social responsibility.Board and its Sub-Committees

(Highest decision-making body for risk management)

Senior Management

(Oversees and implements risk management initiatives)

Risk Management Functional Dept.(Risk identification assessment and mitigation)

Legal Internal Internal

Security

Affairs Audit Control

Business and Support Dept.Business Dept. Leaders Business Dept. Support Dept.( Integrate risk Risk Officers

management into Conduct risk

Finance HR IT

operations to align assessments

business and risk monitoring and

objectives) reporting within

departments

Employees

All staff receive risk management Employees report potential risks to

training to understand their roles in ensure timely escalation and

risk mitigation continuous improvement

FIRST 2024 ESG Report 90Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

Leveraging our established training

management system we regularly organize

workshops conducted by internal trainers or

external experts to educate employees on

risk-related topics including workplace safety

environmental protection business ethics

and anti-fraud measures. Through case

studies we strengthen risk awareness and

preemptively mitigate potential risks.To improve risk management efficiency and effectiveness we prioritize the development and optimization of internal

communication mechanisms. Regular cross-departmental risk management coordination meetings ensure timely

information exchange and sharing of best practices among management and key personnel. Internal

communication platforms and knowledge management systems facilitate seamless dissemination of risk alerts

response strategies and implementation measures. Additionally we encourage employees to proactively report

potential risks or hazards through established feedback channels and incentive programs fostering an open

transparent and collaborative risk management culture. This collective approach enables us to address challenges

promptly and sustain healthy development.To effectively mitigate major risks and strengthen the company's comprehensive risk management in accordance

with relevant regulations such as the Basic Standards for Enterprise Internal Control and the Application Guidance

for Enterprise Internal Control the company has updated and refined its Internal Control Management System.This

streamlined and effective internal control system integrates risk management processes across all operational and

managerial activities. Supervised and evaluated by the Board of Directors Supervisory Board senior management

and internal audit department the system covers five key components: internal environment risk assessment

control activities information and communication and internal monitoring. Throughout 2024 the company and its

subsidiaries adhered strictly to legal requirements with no material violations or significant penalties incurred.We engaged Pan-China Certified Public Accountants LLP as our internal

control auditor for 2024 to evaluate the effectiveness of controls across

headquarters and subsidiaries. The audit identified no material

weaknesses in design or implementation and issued an unqualified

Internal Control Audit Report. The company annually discloses its Internal

Control Self-Assessment Report.FIRST 2024 ESG Report 91Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

We will conduct comprehensive risk assessments across all operational modules every 2-3 years utilizing periodic

reporting internal audits special investigations and internal control evaluations to continuously enhance the

corporate risk database.Identified risks are rigorously classified based on impact severity and likelihood with priority given to critical and

significant risks to ensure prompt resolution.Besides a dedicated risk monitoring mechanism has been established featuring targeted follow-up inspections to

objectively evaluate remediation effectiveness and sustain risk management efficacy.We implemented an extensive and responsive preemptive risk alert system deepening grassroots-level risk

identification and control. This ensures swift precise responses from early warning detection to countermeasure

formulation.To achieve thorough risk oversight we appointed frontline risk officers—including safety documentation and

internal control specialists—across headquarters departments subsidiaries and manufacturing sites. These roles

form a bottom-up risk prevention network conducting daily monitoring while actively participating in risk

identification assessment and initial mitigation.We prioritize identifying and addressing sustainability-related adverse impacts embedding due diligence as a

cornerstone of business decisions and risk management. During the reporting period cross-departmental

collaboration clarified responsibilities to ensure systematic execution. Due diligence covers the company

subsidiaries and direct/indirect business partners spanning:Labor relations Human rights Environmental

compliance Anti-corruption Climate change Technology ethics Business integrity Supply chain management.Particular attention is given to human rights and environmental risks with due diligence integrated into governance

strategic planning and risk frameworks. Stakeholder engagement ensures timely response to concerns while

targeted measures prevent mitigate and address actual/potential impacts. Continuous tracking and evaluation

translate findings into actionable management strategies safeguarding long-term resilience.FIRST 2024 ESG Report 92Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

FIRST is committed to fostering a fair just and transparent business environment firmly prohibiting commercial

bribery and corruption. Through robust management systems and oversight mechanisms we ensure lawful and

compliant operations while safeguarding the legitimate rights of the company employees and stakeholders.Upholding integrity probity and accountability we embed anti-bribery and anti-corruption principles into daily

operations cultivating a culture of honesty and self-discipline.FIRST strictly adheres to Criminal Law of the People's Republic of China Company Law of the People's Republic of

China Anti-Unfair Competition Law of the People's Republic of China Interim Provisions on Prohibiting Commercial

Bribery (State Administration for Market Regulation) and other laws and regulations.The Board's Strategy and Sustainability Committee oversees (1)Under the guidance of the Board implement the

business ethics and anti-corruption strategies. The Business business ethics management strategies and

Ethics Leadership Group (chaired by the Chairman) operates objectives to ensure operations comply with ethical

under the Internal Audit Department which reports quarterly and regulatory requirements.to the Board. (2)Establish and improve the internal business ethics

supervision system undertake compliance monitoring

and review responsibilities to guarantee the legality

and ethicality of company operations.FIRST currently has 10 full-time professionals responsible for

business ethics compliance internal audits and anti-fraud (3)Handle the acceptance and investigation of internal

and external complaints and reports conduct analysis

investigations. All team members hold bachelor's degrees or

to determine the nature of issues and provide

higher with diverse professional backgrounds covering

resolution recommendations.finance auditing engineering law investment mechanical

automation and other fields. Team members possess (4)Carriy out internal audits risk management

professional qualifications including Intermediate Accountant internal control evaluations and anti-fraud

Intermediate Auditor Certified Public Accountant (CPA) investigations. Based on review findings develop

improvement measures and continuously track

National Legal Professional Qualification Class II

rectification progress to ensure effective

Construction Engineer and Certified Internal Auditor (CIA).implementation of all actions.We have established the Supplier Integrity Management Procedures

and Employee Code of Ethical Conduct which clearly articulate our

unwavering stance and fundamental principles on business ethics. We

firmly believe that upholding business ethics serves as the cornerstone

for sustainable corporate development. Therefore we explicitly require

The Supplier Integrity Management

all stakeholders to thoroughly understand and strictly adhere to our Procedures expressly prohibit suppliers from

business ethics policies collectively maintaining a fair just and providing any form of improper benefits to

transparent business environment. company employees. Suppliers are obligated

to fully comprehend and accept our business

Furthermore we have formulated the Management Probity Guidelines ethics policies and must provide active

Internal Audit Management System and Whistleblowing Management cooperation during investigations or audits

Policy and entered into Counterparty Integrity Commitment Letters with conducted by our company.all suppliers. These documents collectively form the critical framework The Employee Code of Ethical Conduct clearly

defines red lines: under no circumstances may

for advancing our business ethics management ensuring that ethical

employees accept any form of economic

principles are rigorously implemented at every stage of commercial benefit from business partners or parties with

activities to safeguard the company's reputation and long-term interests. potential conflicts of interest.FIRST 2024 ESG Report 93Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

The Internal Audit Department conducts comprehensive and in-depth reviews annually of key business areas

including procurement sales engineering and financial management as well as high-risk areas prone to misconduct

achieving 100% coverage of critical risk domains. Additionally a full-scope review of all business areas is completed

biennially. Aligned with the Board's risk management strategy the department dynamically adjusts annual anti-fraud

and compliance plans to ensure operations remain compliant and sustainable.During the reporting period the Internal Audit Department planned and completed 21 internal audit tasks and 4

specialized fraud investigations (25 tasks total) achieving a 100% completion rate. The audits identified 130

management deficiencies prompting targeted improvements to optimize processes and operational efficiency.FIRST carried out 17 planned audit rectification trackings monitored 162 corrective actions (90% completion rate)

strengthening internal controls and risk management. The company addressed multiple commercial bribery and

corruption cases involving 566 thousand RMB.The company attaches great importance tobusiness ethics training. Commercial ethics training achieved 100%

coverage among directors management and key personnel significantly enhancing compliance awareness.We have adopted a three-pronged training model. Through new employee orientation regular internal training and

external expert lectures we comprehensively enhance employees' awareness of business ethics and compliance.In August 2024 the Internal Audit Department successfully launched the

"Integrity Construction Month Campaign" a key component of both the

annual training plan and the monthly learning plan for Party members. Jointly

organized by the Internal Audit Department HR Department and FIRST

Party Committee the campaign culminated in late August with a corporate

lecture series titled "Lecture on Prevention and Response to Corporate

Economic Crimes & Integrity Month Summary Meeting" delivered through a

hybrid online-offline format. Leveraging a tiered training transfer mechanism

across departments the initiative ensured full coverage of all divisions

subsidiaries and domestic/overseas manufacturing bases achieving broad

and in-depth participation across the entire workforce.Over 4000 employees actively engaged in the campaign representing a

93.3% company-wide participation rate. Through systematic training and

advocacy employees’ awareness of business ethics and compliance was

significantly enhanced further strengthening the foundation of the

company’s integrity culture.FIRST 2024 ESG Report 94Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

In July 2024 FIRST s annual Supplier Conference was successfully convened at

its Hangzhou headquarters under the theme "Upholding Standards Winning

Through Quality Navigating Cycles Embracing the Future". Throughout the long

journey of corporate collaboration "integrity and probity" have remained the core

principles serving as the solid foundation for building long-term stable

partnerships between FIRST and its suppliers. At this conference FIRST

reinforced its integrity-themed advocacy by deeply interpreting anti-corruption

policies and sharing practical cases emphasizing the critical role of ethical

cooperation in maintaining a fair competitive market environment and driving

sustainable corporate development. During the event all staff from the Supply

Chain Center solemnly took an integrity oath. Every word of the oath resounded

with resolve reflecting FIRST employees firm commitment to upholding moral

and legal boundaries adhering to honesty and practicing strict self-discipline. It

also demonstrated FIRST s determination to uphold transparency in

procurement and resolutely reject corruption.FIRST has always attached great importance to the opinions and feedback of its partners and employees. In July

2024 we meticulously designed and distributed A Letter to Employees/Suppliers via text message to all partners and

staff accompanied by a survey questionnaire. We sincerely aim to gather diverse insights and suggestions through

this initiative to continuously improve our operations. Meanwhile we solemnly commit to strictly protecting the privacy

and rights of all respondents by keeping their information confidential ensuring they can share their genuine thoughts

without hesitation.Employee Supplier

Quantity Quantity

Questionnaire Questionnaire

Distributed 4341 Distributed 326

Responded 4310 Responded 208

Response Rate 99.3% Response Rate 63.8%

Among the collected responses 81 valid issues were raised

covering key business areas including Supply Chain

Management Production Management Internal Audit

Financial Management Information Technology Engineering

Construction Equipment Maintenance and Human Resources.For each feedback received we conducted detailed

investigations—including follow-up calls and face-to-face

interviews—to deeply understand the context and facts of the

issues. Based on these we developed practical improvement

measures to ensure all concerns are properly addressed and

resolved.FIRST 2024 ESG Report 95Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

To strengthen internal monitoring of business ethics and compliance we have established

accessible and diversified reporting channels for employees suppliers clients and other

stakeholders. Reportable matters include violations of the company's legitimate rights regarding

property or reputation acts that harm employee rights or breach national laws/regulations and

non-compliance with company policies.Reporting Email firstjubao@firstpvm.com

Reporting Hotline 0571-61076599

Reporting Mail Internal Audit Department No.8 Fusite Street Lin'an District Hangzhou Zhejiang

WeChat Official Account: SH603806

WeChat Mini Program: FIRST Complaint System

The Whistleblowing Management Policy explicitly ensures whistleblower safety through:

? Strict Confidentiality: All personal data and evidence are classified per Confidentiality Policy standards with

zero tolerance for leaks.? Secure Investigations: Prohibits forwarding complaint materials directly to implicated parties to prevent

retaliation.? Retaliation Penalties: Legal/disciplinary actions against retaliation perpetrators.To encourage all stakeholders to actively report violations of business ethics while fully protecting whistleblower

privacy FIRST has established a reasonable reward mechanism. For verified reports we will comprehensively

consider factors including the nature of the incident scope of impact and the whistleblower's level of cooperation to

determine appropriate rewards. The reward system offers diverse forms of incentives including but not limited to

monetary rewards. For reports related to procurement activities additional incentives such as increased procurement

quotas may be granted. This program is designed to encourage ethical behavior and maintain a fair and transparent

business environment.FIRST 2024 ESG Report 96Corporate Governance Standardized Operations Risk Management and Internal Controls

Business Ethics

Under the internal self-inspection and correction mechanism upon identifying operational management risks or

vulnerabilities through whistleblowing investigations the relevant cases are immediately transferred to the

corresponding business units or divisions to accurately assign accountability. Simultaneously a continuous follow-up

mechanism is activated to ensure departments implement corrective actions conduct thorough self-inspections

identify potential risks and address root causes by optimizing processes and improving systems. This approach

continuously refines management mechanisms enhances overall operational standards and establishes a closed-

loop management model of "issue identification - case escalation - problem rectification - management improvement"

to ensure the company's stable and sustainable operations.We consistently uphold the principles of fair competition integrating anti-unfair competition practices as a core

component of our governance framework. We strictly adhere to laws and regulations such as the Anti-Monopoly Law

of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China

continuously improving our compliance management systems and strengthening enforcement effectiveness. We

explicitly prohibit monopolistic agreements abuse of market dominance discriminatory practices and trade secret

infringements while establishing end-to-end risk control through technological empowerment and process

optimization. To enhance external oversight we have implemented a multi-channel feedback mechanism including

dedicated whistleblowing positions regular stakeholder engagement and third-party independent audits

systematically collecting risk indicators and promptly addressing governance needs.During the reporting period FIRST did not encounter any major litigation or administrative penalties related to unfair

competition. Moving forward FIRST will further deepen its compliance culture through multi-dimensional initiatives

such as training programs internal audits and compliance assessments reinforcing the fairness and sustainability of

the business ecosystem and setting a benchmark for maintaining healthy market order.FIRST 2024 ESG Report 97Index of Shanghai Stock Exchange Listed Company Self-Regulatory Guidelines No. 14 – Sustainability

Reporting (Trial)

SSE Guidance SSE Guidance

Chapter/Topic

Corresponding Topic Corresponding Clause

Chapter 1 Laying a Solid Foundation for Sustainable Development

Response to UN Sustainable Development

1.1//

Goals

1.2 ESG Governance / Article 11

1.3 Stakeholder Engagement Stakeholder Communication Article 9 Article 53

1.4 Materiality Assessment for ESG Issues / Article 5

Sustainability Risks and Opportunities

1.5 / Article 11 Article 12

Management

1.6 Sustainability Metrics and Targets / Article 11

Chapter 2 Green Development for a Sustainable Future

2.1 Response to Climate Change Response to Climate Change Articles 21-28

Environmental Compliance Management

2.2 Environmental Compliance Management Article 33 Article 32

Ecosystem and Biodiversity Protection

2.3 Energy Management Energy Utilization Article 35

2.4 Water Resource Utilization Water Resource Utilization Article 36

Pollutant Emissions Waste Management Article 30 Article 31

2.5 Emissions & Waste Management

Circular Economy Article 37

2.6 Chemical Safety / /

Chapter 3 Innovation and Collaboration for a Responsible Value Chain

3.1 Innovation-driven Development Innovation-Driven Development Article 42

3.2 Intellectual Property Protection Innovation-Driven Development Article 42

3.3 Product and Service Safety and Quality Product & Service Safety & Quality Article 47

Data Security and Customer Privacy Data Security and Customer Privacy

3.4 Article 48

Protection Protection

3.5 Supply Chain Security Supply Chain Security Article 45

Chapter 4 Caring for Employees and Building a Harmonious Ecosystem

4.1 Occupational Health and Safety (OHS) Employees Article 50

4.2 Diversity Equity and Inclusion (DEI) Employees Article 50

Human Rights and Employee Rights

4.3 Employees Article 50

Protection

4.4 Employee Development and Training Employees Article 50

4.5 Social Responsibility Rural Revitalization Social Contribution Article 39 Article 40

Chapter 5 Integrity and Compliance to Strengthen Corporate Governance

5.1 Corporate Governance / /

5.2 Standardized Operations Tech Ethics Fair Treatment of SMEs Article 43 Article 46

5.3 Risk Management and Internal Controls Due Diligence Article 52

Anti-Bribery & Anti-Corruption Fair

5.4 Business Ethics Article 55 Article 56

Competition

FIRST 2024 ESG Report 98GRI

DISCLOSURE LOCATION RELATED CHARPTER

STANDARD

2-1 Organizational details P2 P4-8 Report Instructions About FIRST

2-2 Entities included in P2

theorganization's sustainability Report Instructions

reporting

2-3 Reporting periodfrequency and P2 Report Instructions

contact poin

2-6 Activitiesvalue chain and other P4-8 P56-59 About FIRST Product and Service Safety

business relationships P61-65 and Quality Supply Chain Security

2-7 Employees P70-74 Diversity Equity and Inclusion (DEI)

2-8 Workers who are not employees P70-74 Diversity Equity and Inclusion (DEI)

2-9 Governance structure and P14-16 P85-87 ESG Governance Corporate Governance

composition

2-10 Nomination and selection of the P85-87 Corporate Governance

highest governance body

2-11 Chair of the highest govemance P85-87 Corporate Governance

GRI 2: body

General 2-12 Role of the highest govemance P14-16 P85-87

Disclosures body in overseeing the ESG Governance Corporate Governance

2021 management of impacts

2-13 Delegation of responsibility for P14-16 P85-87 ESG Governance Corporate Governance

managing impacts

2-14 Role of the highest governance P14-16 P85-87 ESG Governance Corporate Governance

body in sustainability reporting

2-15 Conflicts of interest P17 P85-87 Stakeholder Engagement Corporate

Governance

2-16 Communication of critical P17 P85-89 Stakeholder Engagement Corporate

concerns Governance Standardized Operations

2-17 Collective knowledge of the P14-16 ESG Governance

highest governance body

2-19 Remuneration policies P75-80 Human Rights and Employee Rights

Protection

2-20 Process to determine P75-80 Human Rights and Employee Rights

remuneration Protection

2-22 Statement on sustainable P14-16 P22 ESG Governance Sustainability Metrics and

development strategy Targets

2-23 Policy commitments P17 P75-80 Stakeholder Engagement Human Rights and

P90-92 Employee Rights Protection Risk

Management and Internal Controls

2-24 Embedding policy commitments P14-16 P88-97 ESG Governance Standardized Operations

Business Ethics

2-25 Processes to remediate P17 P90-92 Stakeholder Engagement Risk Management

negative impacts and Internal Controls

2-26 Mechanisms for seeking advice P17 P90-92 Stakeholder Engagement Risk Management

and raising concerns and Internal Controls

2-27 Compliance with laws and P88-89 Standardized Operations

regulations

2-29 Approach to stakeholder P17 Stakeholder Engagement

engagement

FIRST 2024 ESG Report 99GRI

DISCLOSURE LOCATION RELATED CHARPTER

STANDARD

GRI 3: Material 3-1 Process to determine material P17 P18-20 Stakeholder Engagement Materiality

Topics 2021 topics Assessment for ESG Issues

3-2 List of material topics P18-20 Materiality Assessment for ESG Issues

3-3 Management of material topics P18-20 Materiality Assessment for ESG Issues

GRI 201: 201-1 Direct economic value P9 P75-80 2024 Key Performance and Awards Human

Economic generated and distributed Rights and Employee Rights Protection

Performance 201-2 Financial implications and P24-30

2016 other risks and opportunities due to

Response to Climate Change

climate change

GRI 203: 203-1 Infrastructure investments and P83 Social Responsibility

Indirect services supported

Economic

Impacts 2016

GRI 205: 205-1 Operations assessed for risks P93-97 Business Ethics

Anticorruption related to corruption

2016 205-2 Communication and training P93-97 Business Ethics

about anti-corruption policies and

procedures

205-3 Confirmed incidents of P93-97 Business Ethics

corruption and actions taken

GRI 207: Tax 207-3 Stakeholder engagement and P17 Stakeholder Engagement

2019 management of concerns related

to tax

GRI 302: 302-1 Energy consumption within P34-37 Energy Management

Energy the organization

2016 302-3 Energy intensity P34-37 Energy Management

302-4 Reduction of energy P34-37 Energy Management

consumption

GRI 303: Water 303-3 Water withdrawal P38-39 Water Resource Utilization

and Effluents

303-4 Water discharge P38-39 Water Resource Utilization2018

305-1 Direct (Scope 1) GHG P24-30 Response to Climate Change

emissions

GRI 305:

Emissions 305-2 Energy indirect (Scope 2) P24-30 Response to Climate Change

2016 GHG emissions

305-4 GHG emissions intensity P24-30 Response to Climate Change

GRI 306: Waste 306-1 Waste generation and P40-44 Emissions & Waste Management

2020 significant waste-related impacts

306-2 Management of significant P40-44 Emissions & Waste Management

waste-related impacts

306-3 Waste generated P40-44 Emissions & Waste Management

308-1 New suppliers that were

GRI 308: screened using environmental P61-65 Supply Chain Security

Supplier criteria

Environmental

308-2 Negative environmental

Assessment

impacts in the supply chain and

2016 P61-65

Supply Chain Security

actions taken

FIRST 2024 ESG Report 100GRI

DISCLOSURE LOCATION RELATED CHARPTER

STANDARD

GRI 401: 401-2 Benefits provided to full-time P75-80 Human Rights and Employee Rights

Employment employees that are not provided Protection

2016 to temporary or part-time employees

401-3 Parental leave P75-80 Human Rights and Employee Rights

Protection

GRI 403: 403-1 Occupational health and P67-69 Occupational Health and Safety (OHS)

Occupational safety management system

Health and 403-2 Hazard identification risk P67-69 Occupational Health and Safety (OHS)

Safety 2018 assessment and incident

investigation

403-3 Occupational health services P67-69 Occupational Health and Safety (OHS)

403-5 Worker training on P67-69 Occupational Health and Safety (OHS)

occupational health and safety

403-9 Work-related injuries P67-69 Occupational Health and Safety (OHS)

403-10 Work-related ill health P67-69 Occupational Health and Safety (OHS)

GRI 404: 404-1 Average hours of training per P81-82 Employee Development and Training

Training year per employee

and Education 404-2 Programs for upgrading P81-82 Employee Development and Training

2016 employee skills and transition

assistance programs

GRI 405: 405-1 Diversity of governance P70-74 Diversity Equity and Inclusion (DEI)

Diversity bodies and employees

and Equal

Opportunity

2016

GRI 413: Local 413-1 Operations with local P83 Social Responsibility

Communities community engagement impact

2016 assessments and development

programs

GRI 414: 414-1 New suppliers that were Supply Chain Security

Supplier screened using social criteria

P61-65

Social 414-2 Negative social impacts in the Supply Chain Security

Assessment supply chain and actions taken P61-65

2016

GRI 416: 416-2 Assessment of the health and P56-59 Product and Service Safety and Quality

Customer safety

Health impacts of product and service

and Safety categories

2016

FIRST 2024 ESG Report 101To our valued readers

We express our gratitude for taking the time to read our 2024 Environmental Social and

Governance (ESG) Report. As we strive to enhance the standard of our ESG endeavors and the

caliber of our report preparation we would greatly appreciate your input and valuable suggestions.You could provide us with your feedback through the mail email or by making calls and so on.Rest assured that we will maintain the confidentiality of your personal information and the content

you provide. Thank you!

Contact information

Address: No.8 Fusite Street Lin’an Hangzhou China

Tel: 0571-61076968

Email: first-zqb@firstpvm.com

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FIRST 2024 ESG Report 102