Where there is home and love there is OPPEIN.OPPEIN Home Group Inc.???? Sustainability Report
Mainboard-listed company stock code：??????OPPEIN Home Group Inc.CONTENTS
ABOUT THIS REPORT ................................... 3
Basis of Preparation .................................3
Scope of the Report ..................................3
Data Sources ........................................ 3
Report Accessibility .................................3
1. PREFACE ...........................................4
1.1. Highlights of Sustainability Initiatives in 2....4
1.2. About OPPEIN ....................................9
1.3. Sustainable Development Management .............11
2. GOVERNANCE .......................................22
2.1. Corporate Governance ...........................22
2.2. Risk and Compliance Control ....................33
2.3. Business Ethics ................................38
2.4. Responsible Marketing ..........................48
3. ENVIRONMENT ......................................50
3.1. Environmental Management .......................50
3.2. Addressing Climate Change ......................59
3.3. Resource Utilization and Management ........... 67
3.4. Pollutant Control ..............................76
3.5. Green and Eco-friendly Commitment Production ...82
3.6. Ecosystem and Biodiversity Conservation ........97
4. SUPPLY CHAIN .................................... 99
4.1. Sustainable Procurement ........................99
4.2. Supplier Management .......................... 103
5. PRODUCTS AND SERVICES ...........................120
5.1. Product Quality Upgrades ......................120
5.2. Technology R&D and Innovation ................ 141
5.3. Protection of Customer Rights .................151
1OPPEIN Home Group Inc.
6. EMPLOYEES AND SOCIETY .......................... 162
6.1. Employee Responsibility .......................162
6.2. Social Responsibility .........................194
7. APPENDIX ........................................202
7.1. Sustainable Development Key Performance Indic. 202
7.2. GRI Index .....................................213
7.3. Shanghai Stock Exchange Sustainability Report..220
2OPPEIN Home Group Inc.
ABOUT THIS REPORT
This report is the fifth sustainability report published by OPPEIN Home Group Inc. (referred to as
"OPPEIN""OPPEIN Group" "the Group" or "we"). Guided by the principles of objectivity
standardization transparency and comprehensiveness the report systematically presents OPPEIN's
sustainability philosophy practices and key progress in sustainability initiatives during the reporting
year. We hope that by publishing this report we can strengthen communication and engagement with
both internal and external stakeholders.Basis of Preparation
This report was prepared in accordance with the "Shanghai Stock Exchange Self-Regulatory Guidelines
for Listed Companies No. 4—Preparation of Sustainability Reports (Revised January 2026)" the
"Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14—Sustainability
Reports (Trial)" and the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies
No. 1—Standardized Operations" while also referencing the "GRI Sustainability Reporting Standards"
(GRI Standards) issued by the Global Sustainability Standards Board (GSSB) and the "United Nations
Sustainable Development Goals" (SDGs) issued by the United Nations.Scope of the Report
In line with our financial reporting scope this report covers the Group’s ESG management approaches
initiatives and performance throughout 2025 including operations at our Guangzhou headquarters and
production bases in Tianjin Qingyuan Wuxi Chengdu and Wuhan. Selected content has been expanded
to improve comparability and forward-looking perspective.Data Sources
Financial data originates from the 2025 annual financial report while other content is drawn from internal
records and public sources. All monetary values are in RMB unless otherwise specified. The Board of
Directors assumes responsibility for the report’s accuracy and completeness.Report Accessibility
This bilingual (Chinese/English) PDF report is accessible on our official website (www.OPPEIN.com)
and the Shanghai Stock Exchange platform (www.sse.com.cn). The Chinese version prevails in case of
discrepancies. For feedback or inquiries please contact oppeinir@OPPEIN.com.
3OPPEIN Home Group Inc.
1. PREFACE
1.1. Highlights of Sustainability Initiatives in 2025
1.1.1. Governance: Optimizing the Governance Structure and Strengthening
Risk Management
? Improving the Sustainability Governance System: The Group has established a four-tier
governance structure covering the "supervisory level – decision-making level – management level
– executive level" with clearly defined responsibilities to ensure the effective integration of ESG
strategies into corporate operations. During the reporting period the detailed rules of procedure for
the Strategy and Sustainability Committee were further revised.? Enhancing Board Governance Effectiveness: The Group completed the transition to the fifth
Board of Directors with members of diverse ages and professional backgrounds. The Supervisory
Board was lawfully dissolved and its oversight functions were incorporated into the Board's Audit
and Risk Management Committee forming a new single-tier governance model that deeply
integrates decision-making and oversight
? Group Annual ESG Performance: The MSCI ESG rating was upgraded to BBB; the Wind ESG
rating was upgraded to AA; the QuantData ESG rating was maintained at AAA; and the CSI Index
ESG rating was maintained at AA.? Group Annual Disclosure Performance: The Group once again received an "A" rating in the
Shanghai Stock Exchange's 2024–2025 disclosure evaluation for Main Board-listed companies.Only 19% of companies listed on the Shanghai Stock Exchange received an "A" rating. Since 2018
the Group has earned an "A" rating for seven consecutive years. Only 22 companies on the Shanghai
Stock Exchange—less than 1% of the total—have achieved this distinction for seven consecutive
years.? Strengthening Business Ethics and Compliance Defenses: The Employee Integrity and Self-
Discipline Pledge achieved a 100% signing rate.A total of 67 sessions of "Integrity Culture" training
were delivered covering all staff. The Group conducted 160 anti-corruption inspections on
suppliers and distributors covering 18 cities across 7 provinces. It also took an active part in
4OPPEIN Home Group Inc.
industry anti-fraud forums to share compliance management experience and jointly build a sound
integrity business ecosystem.
1.1.2. Environment: Significant Progress in Green Transition and Emissions
Reduction
? Significant Reduction in Greenhouse Gas Emissions: Through energy-saving upgrades and the
adoption of clean energy the Group's total Scope 1 and Scope 2 greenhouse gas emissions amounted
to approximately 153575.67 metric tons of carbon dioxide equivalent representing a year-on-year
reduction of approximately 11.82%.? Breakthroughs in Clean Energy Adoption: The 19.23-megawatt photovoltaic (PV) projects
expanded at the Chengdu and Wuhan sites were connected to the grid and began generating
electricity. The total installed PV capacity at the Group headquarters and various sites reached
63.357 megawatts. The total electricity generated by PV projects amounted to approximately
49644.28 megawatt-hours with clean energy accounting for 15.18% of the Group's total energy
consumption—a year-on-year increase of 33.31%. This saved 15000 metric tons of standard coal
annually and reduced carbon dioxide emissions by approximately 32400 metric tons.? Green Manufacturing Receives Authoritative Recognition: Thanks to its outstanding practices
in environmental management and comprehensive resource utilization the Group was successfully
included in Guangdong Province's list of "Green Factories." As of the end of the reporting period
the Group held a total of one national-level and two provincial-level Green Factory certifications.? Exploring Product Carbon Footprint Management: The Group conducted a carbon footprint
assessment for household gas stoves and published a report identifying key emission reduction
areas to provide a data foundation for future green product design.? Continuous Improvement in Resource Utilization Efficiency: Through the implementation of
systematic material recycling initiatives—such as the reuse of scrap materials and software-
optimized production scheduling—the comprehensive utilization rate of sheet materials increased
by 5%–10%; total annual water withdrawal decreased by 7.07% year-over-year.
1.1.3. Supply Chain: Responsible Management and Digital Collaboration
5OPPEIN Home Group Inc.
? Deepening Sustainable Procurement and ESGManagement: 100% of rawmaterial procurement
complied with strict certification standards 406 suppliers hold ISO 14001 Environmental
Management System certification. A supplier evaluation system covering ESG dimensions was
established and ESG reviews were completed for 30 suppliers. The proportion of local suppliers
and their share of total procurement value both exceeded 99%.? Comprehensive Digital Upgrade of the Supply Chain: We launched a major supply chain system
reform integrating all production bases and procurement organizations into a unified SRM system
thereby achieving online collaborative management of the entire supplier lifecycle and efficient
two-way communication.? Strict Supplier Onboarding and PerformanceManagement:We identified and selected 823 new
suppliers throughout the year and completed on-site inspections of 124 suppliers. We conducted
performance evaluations of 1105 suppliers for all non-one-time purchases and terminated
cooperation with 5 non-compliant suppliers based on the results.
1.1.4. Products and Services: Digitalization and AI-Driven Innovation
? Industry-Leading R&D System and Investment: Annual R&D investment reached RMB 909
million accounting for 5.27% of operating revenue; the Group maintains a sizable R&D team of
1867 employees representing 10.44% of the total workforce. During the reporting period the
Group completed the transition of its IPD process from version 1.0 to 2.0 and established a tiered
system comprising 1 overarching regulation 6 supplementary regulations 30 operational rules 1
implementation guideline and 7 processes significantly enhancing R&D responsiveness and cross-
departmental collaboration efficiency.? Setting Industry Environmental Standards: As one of the primary drafting entities the Group
participated in formulating the "Formaldehyde-Free Wood-Based Panels and Their Products" group
standard and the revision of three national standards for wood-based panels continuously raising
the industry's environmental standards. The Group's "Formaldehyde-Free 4.0" technology
(Formaldehyde-Free Antibacterial Green Panel) has served over 1 million households to date.
? Digital Factories Pioneering Smart Manufacturing: Leveraging five AI-powered smart factories
in Qingyuan Wuxi Chengdu Tianjin and Wuhan the Group has established a digital management
6OPPEIN Home Group Inc.
system covering the entire value chain from "design to production logistics and service." Through
laser-guided AGVs and intelligent automated warehouses the Group achieves "no-touch"
automated material flow and high automation in key processes supporting the efficient daily
production of 500000 custom components and shortening custom order delivery cycles.? Systematic Improvement in Service Quality: We launched the "Service Summit Plan" to establish
a three-tier service network comprising "Headquarters-Bases-Local Offices" and introduced the
"Golden Butler" service with eight key commitments. An AI customer service tool was launched to
provide dealers with 24/7 intelligent responses handling an average of over 100 inquiries daily with
a first-response success rate as high as 93%. During the reporting period consumer satisfaction
with basic services reached 8.59 points and product quality reputation reached 8.79 points.
1.1.5. Employees and Society: Strengthening Rights Protection and Public
Welfare Initiatives
? Comprehensive protection of employee rights and benefits:: Social insurance coverage for
employees reached 100%. The Group implemented a more flexible work schedule including early
dismissal on Fridays and during the winter. During the reporting period working hours were further
reduced by moving the Friday dismissal time from 5:00 PM to 4:15 PM systematically decreasing
employees' time on the job. Established a comprehensive employee care system covering major
illness assistance hardship aid and charitable donations with approximately RMB 86 million
invested in employee welfare initiatives throughout the year.? Outstanding achievements in occupational health and safety management: With the goal of
"zero casualties zero environmental pollution and zero occupational injuries" the Group
comprehensively upgraded its EHS management system. During the reporting period the signing
rate of safety responsibility commitment letters EHS training coverage employee physical
examination coverage occupational hazard factor testing rate and accident investigation and
rectification rate all reached 100%; there were zero new cases of occupational diseases; the lost-
time injury rate per million working hours decreased by approximately 37.84% year-over-year; 70
practical emergency drills were conducted throughout the year continuously strengthening the
safety defenses for all employees.
7OPPEIN Home Group Inc.
? Streamlining democratic management and communication channels: We optimized the
operational mechanisms of the Employee Representative Assembly and introduced a digital
platform. During the reporting period the Employee Representative Assembly collected 61 valid
proposals and received over 14000 constructive suggestions.? Philanthropic investments focused on education and social harmony: Through the Guangzhou
OPPEIN Public Welfare Foundation the Group continued to support education rural revitalization
and other areas actively fulfilling its corporate social responsibilities. During the reporting period
the Guangzhou OPPEIN Public Welfare Foundation made donations totaling RMB 3.3367 million
for educational assistance and mentoring programs and invested RMB 2.0714 million in support
funds to aid rural revitalization projects.
8OPPEIN Home Group Inc.
1.2. About OPPEIN
1.2.1. Company Profile
OPPEIN Home Group Inc. founded in 1994 (Stock Code: 603833) is headquartered in Guangzhou
Guangdong Province. It is China’s first listed enterprise in the customized home furnishing industry with
a market capitalization exceeding RMB 100 billion. Starting from integrated kitchen cabinets the Group
has expanded its business portfolio to cover wardrobes whole-home customization wooden doors
bathroom products soft furnishings kitchen appliances metal doors and windows armored doors and
furniture accessories as well as integrated home solutions forming a diversified industrial layout.Centering on integrated kitchen cabinets and wardrobes as flagship products the Group has grown into
a comprehensive modern integrated home solution provider integrating R&D production and sales. The
Group currently runs more than 7300 stores globally with its products available in 118 countries across
six continents.Establishment of OPPEIN 1994 Business income in 2025 RMB 17.232 billion
Stores worldwide Over 7300 Net profit in 2025 RMB 1.997 billion
1.2.2. Business Layout
The Group operates five smart manufacturing bases in Tianjin Qingyuan Wuxi Chengdu and Wuhan
with a total floor area exceeding 3.15 million square meters. Each base supports a supply system with a
600-kilometer coverage radius establishing a nationwide "8-hour delivery radius."
Qingyuan The OPPEIN Southern production base spans 994000 sq.m addressing South China market
China demands while extending global reach.Tianjin In July 2011 the Tianjin base began operation and in 2013 its second phase was completed
China and operational.Wuxi In 2014 OPPEIN signed a strategic agreement with Wuxi's Huishan District Government.China
Chengdu OPPEIN's Chengdu base which required an investment of RMB 2.5 billion and spans 414
China acres began production..In July 2021 OPPEIN began constructing the Central China Intelligent Manufacturing
Wuhan
Base in Wuhan's Caidian District aiming to increase high-quality production capacity and
China
expand services globally.
9OPPEIN Home Group Inc.
1.2.3. Corporate Culture
1.2.4. 2025 Annual Honors
1.2.4.1. 2025 ESG Rating Performance
* MSCI ESG Rating Upgraded to BBB * Wind ESG Rating Upgraded to AA
* QuantData ESG Rating Maintained at * CSI Index ESG Rating Maintained at AA
AAA
1.2.4.2. 2025 Honors and Awards
Awarding Organization Honors and Awards
Jianggao Town People's Government Baiyun
2024 Jianggao Town Tax Contribution Award
District Guangzhou
Guangzhou Baiyun Financial Development Chair Unit of the Listed Companies Liaison
Promotion Association Committee
Ministry of Industry and Information Technology of
National-Level Green Factory
the People's Republic of China
Guangdong Provincial Department of Industry and
Provincial-Level Green Factory
Information Technology
Grade A Rating for Information Disclosure by Listed
Shanghai Stock Exchange
Companies
"Key Partner Enterprise for the National 'Trade-In'
2024 Home Furnishings Industry High-Quality
Program for Home Furnishings and Kitchen &
Development Conference
Bathroom Renovation"
The 15th China Home Appliance Marketing Annual 2025 China Home Appliance Industry "Rock-Solid
Conference Award"
Liepin 2025 Guangdong Outstanding Employer of the Year
Special Contribution Award for Promoting Chinese
Guangdong Lingnan Poetry Society
Poetry Culture
Guangzhou High-Tech Industrial Development Zone
Evergreen Cornerstone Award
and Private Technology Park Management Committee
10OPPEIN Home Group Inc.
1.3. Sustainable Development Management
Sustainable development underpins the building of a community with a shared future for mankind. As a
well-reputed home furnishing brand OPPEIN upholds the vision of "warming every home with love".The Group follows the social responsibility philosophy of "ooted in society" and giving back to society"
optimizes its sustainable development management system improves internal management standards
strengthens external ESG information disclosure and strives to deliver long-term shared value for all
stakeholders.
1.3.1. Management Structure
The Group attaches great importance to sustainability governance and has built and continuously
improved a four-tier governance framework of supervision decision-making management and execution.It systematically incorporates sustainability principles into corporate strategy and daily operations. With
clear role allocation and top-down coordination the framework provides a solid organizational
foundation for identifying assessing managing and monitoring sustainability impacts risks and
opportunities as well as formulating and implementing corresponding strategies and targets.The Group’s Board of Directors acts as the highest oversight body for sustainability
governance and assumes ultimate accountability for all sustainability matters. Its core
Supervisory Board of duties cover reviewing and approving the Group’s sustainability strategy targets and
Level Directors major policies overseeing the management of sustainability impacts risks and
opportunities ensuring effective operation of the sustainability governance framework
and granting final approval for the Sustainability Report.The Board of Directors set up the Strategy and Sustainability Committee as the core
decision-making and advisory body. Staffed by professionally qualified directors the
Decision Strategy and Committee is tasked with researching the Group’s long-term development strategy and
-Making Sustainability ESG matters and submitting proposals to the Board; guiding and reviewing the
Level Committee identification and assessment of material sustainability issues; formulating ESG
management strategies and targets; and supervising the progress of ESG initiatives to
fully integrate ESG governance into the Group’s overall strategy.
11OPPEIN Home Group Inc.
To coordinate daily operations the Group has set up a cross-functional ESG Working
Group as the core sustainability management body. Led by senior executives the Group
consists of department heads across E S and G fields. Its key duties cover identifying
ESG
and assessing material sustainability issues formulating management goals action plans
Working
Management
and performance indicators per the decisions of the Board and the Committee
Group
Level
coordinating ESG implementation data collection and progress tracking and overseeing
Sustainability Report drafting as well as domestic and international ESG rating
responses.The Group’s business units functional departments and subsidiaries act as the frontline
implementers of sustainability management. In line with established ESG strategies and
Departments
Executive targets they embed relevant requirements into daily business and operations deliver key
and
Level initiatives including energy conservation emission reduction workplace safety
Subsidiaries
employee development supply chain management and compliance and regularly report
progress and data to support the Group’s overall ESG goal achievement
1.3.2. Management Policy
Adhering to the development philosophy of "innovation coordination green development openness
and sharing" the Group focuses on six key areas: "sound operations win-win cooperation social
harmony employee growth innovation and exploration and environmental protection." We
continuously implement our sustainable development strategy to build a new model of green
development in the home furnishing industry. We integrate sustainability into our business management
activities and continuously improve our corporate governance structure; we establish solid partnerships
with all stakeholders to build a world-class supply chain; we actively fulfill our social responsibilities
and are committed to community development and public welfare; we regard talent as the primary
resource for corporate development and continuously provide a favorable work environment; we remain
customer-centric in our continuous innovation and ensure the sustainable operation of our innovation
platforms; we strictly adhere to green and environmental standards to build integrated green production
solutions.
12OPPEIN Home Group Inc.
Sustainability Strategy
Operations Sound Operations Fairness Transparency Cooperation Freedom
Partnerships Partnership Mutual Benefit and Trust Moving Forward Together
Balancing Social Responsibility and Profit Pursuing Harmonious
Society Social Harmony
Development
Appointing the Right People Based on Merit Ensuring Everyone Fully
Employees Employee Growth
Utilizes Their Talents
Building Home Furnishing with the Precision and Quality Standards of
Innovation Pioneering Innovation
Aircraft Manufacturing
Eco-friendly With green as our theme and environmental protection as our
Nature
Commitment foundation
1.3.3. Strategy and Goals
We align the sustainability strategy and practices with the UN 2030 SDGs abide by the UN Global
Compact’s ten principles and sustain industry leadership in sustainable development.In 2025 the Group upgraded sustainability strategy framework tailored to business and industry realities
defining five core dimensions: Governance Environment Supply Chain Products and Services
Employees and Society alongside forward action plans. Guided by this framework the Group has set
clear sustainability targets and advanced solid implementation.Environmental Goals and Social Responsibility Governance System
Actions Implementation Development
The Group actively implements The Group advances the national The Group optimizes
the national Dual Carbon strategy Dual Carbon strategy defines sustainable development
sets clear environmental targets environmental goals and assesses management and corporate
and assesses climate risks and climate risks and opportunities. We governance while enhancing
opportunities. We promotes promotes technical and process internal oversight and risk
technological and process upgrades expands clean energy control to ensure scientific and
upgrades increases clean energy application advocates green rational decision-making. We
use advocates environmental concepts and reduces energy use. also strengthens stakeholder
awareness and reduces energy Meanwhile the Group boosts engagement elevates
consumption. The Group also resource circularity via integrated information disclosure quality
advances resource recycling waste and production water and transparency and underpins
through full-scale waste and recycling systems greatly steady business operations.production water recycling improving resource efficiency.systems significantly improving
resource utilization.
13OPPEIN Home Group Inc.
UN
Category Sustainable OPPEINDevelopment Sustainability Goals Progress Toward 2025 Goals
Goals
Establish and continuously improve a sustainability governance
Optimizing framework covering the four levels of "oversight decision-making
Sustainability management and implementation." A Strategy and Sustainability
Management Committee will be established under the Board of Directors to
implement sustainability management policies and goals.Strengthen We will continue to strengthen communication and engagement with
Stakeholder stakeholders through various channels including investor meetings
Communication employee representative conferences supplier conferences and dealerconferences.Enhancing Successfully complete the implementation of the 2024 equity
Shareholder Returns distribution and steadily implement the 2025 interim dividend plan. Acash dividend of RMB 1.5 billion is proposed for 2025.Refining the In accordance with the law the Supervisory Board was dissolved and
Governance its supervisory functions were fully integrated into the Audit and Risk
Structure Management Committee of the Board of Directors.We continue to refine our risk management and internal control systems
Strengthening Risk establishing internal control measures for high-risk ESG areas; we
and Compliance conduct regular compliance training holding 13 legal training sessions
Governance Management throughout the year totaling 50 hours and reaching a cumulative total of230 participants.We once again received an "A" rating in the "2024–2025 Information
Ensuring the Quality Disclosure Evaluation Results for Listed Companies on the Shanghai
of Information Stock Exchange Main Board" marking the seventh consecutive year we
Disclosure have received an "A" rating for information disclosure from the
Shanghai Stock Exchange.We have established a comprehensive business ethics training system
Strengthening combining multiple formats including "on-site training online courses
Business Ethics company newsletters and WeChat official account posts." Throughout
Promotion the year we conducted 67 sessions of "Integrity Culture" training
reaching 17369 participants and achieving 100% training coverage.Responsible In accordance with the requirements for compliant marketing ethical
Marketing advertising transparent marketing and green marketing we have
Management continuously strengthened responsible marketing management andconducted site visits to business partners.The signing rate for the "Integrity and Self-Discipline Pledge" among
Anti-Corruption employees reached 100%; throughout the year 160 anti-corruption
Management inspections were conducted targeting suppliers and distributors
covering 18 cities across 7 provinces.Strengthening
Environmental The Group's Guangzhou headquarters Qingyuan Tianjin Wuxi and
Management System Chengdu sites have all obtained ISO 14001 environmental management
Certification system certification.Identification and Fully identify the Group's potential climate-related risks and
Response to Climate opportunities and establish a comprehensive management system
Risks and encompassing "governance—strategy—impact risk and opportunity
Opportunities management—indicators and targets."
The 19.23 MW photovoltaic projects at the expanded Chengdu and
Wuhan sites have been connected to the grid. The Group's total installed
Increasing the photovoltaic capacity across the headquarters and all sites now stands at
Proportion of Clean 63.357 MW with total electricity generation from photovoltaic projects
Energy Use reaching approximately 49644.28 MWh. The proportion of clean
energy used by the Group has reached 15.18% representing a year-on-
year increase of 33.31%.Environment Continuing to implement energy-saving and consumption-reductionupgrades the Group's total energy consumption which was equivalent
Reducing Energy to 37869.87 metric tons of standard coal decreased by 10.88%
Consumption and compared to the previous year; total greenhouse gas emissions (Scope 1
Carbon Emissions and Scope 2) amounted to approximately 153575.67 metric tons of
carbon dioxide equivalent representing a year-on-year reduction of
approximately 11.82%.We continued to increase investment in and promote water-saving
Improving Water technologies equipment and projects utilizing non-conventional water
Resource Utilization sources. Total water withdrawal for the year was 1694724.25 metric
tons a decrease of 7.07% year-over-year.Increasing
Investment in The Group ensures the compliant disposal and discharge of all types of
Pollutant Control emissions generated during the production process.Establishing a Green Green and Eco-friendly Commitment concepts are integrated into the
and Environmentally entire product lifecycle including green design raw material selectionclean production Eco-friendly Commitment products streamlined
14OPPEIN Home Group Inc.
UN
Category Sustainable OPPEINDevelopment Sustainability Goals Progress Toward 2025 Goals
Goals
Friendly Production packaging and low-carbon delivery; as of the end of the reporting
System period the Group had accumulated 1 national-level green factory
certification and 2 provincial-level green factory certifications.We actively participate in various ecological and environmental
Ecosystem and protection activities remain vigilant regarding ecosystems and
Biodiversity endangered species in the regions where we operate and are committed
Conservation to minimizing the negative impacts on biodiversity caused by emissions
and resource use during our operations.We strictly ensure the environmental sustainability safety and integrity
of the procurement process. Throughout the year the legal traceability
Strictly Regulating rate for timber and wood panel raw materials reached 100% and the
Procurement certification pass rate for raw materials subject to strict certification
Processes standards was 100%. The number of suppliers certified under ISO 9001or equivalent quality management systems was 741 and the number of
suppliers certified under the ISO 45001 Occupational Health and Safety
Management System was 484.The number of suppliers that have signed and agreed to comply with the
Supplier ESG company's "Supply Chain Code of Conduct" is 2089; 613 suppliers hold
Management sustainability certifications and 30 suppliers have completedenvironmental and social reviews (ESG reviews); 18 supplier ESG
training sessions were conducted.Supply Chain All production bases and procurement organizations under the Group
Supply Chain Digital have been integrated into unified SRM management; leveraging the
Management reform of the large-scale supply chain system we are advancing the
development of supply chain digitalization.End-to-End Supplier Suppliers are subject to dynamic management across dimensions
Management including supplier onboarding due diligence tiered managementperformance evaluation suspension and termination.Supplier Conflict We have established a comprehensive conflict minerals traceability
Minerals management system to ensure that the mineral raw materials used in
Management every batch of supplied products can be traced back to legally minedsources.Empowering We regularly conduct training and exchange sessions for internal and
Supplier external supply chain personnel holding 85 supplier training sessions
Development throughout the year and training 132 suppliers.Advancing Quality We continuously refine our quality management systems and strengthen
Management our quality culture. Both the Group and its subsidiaryAowei Decorative
Upgrades Materials Co. Ltd. have obtained dual certification for the ISO 9001and IQNET quality management systems.Guided by ergonomic design principles we continuously research safer
Ensuring Product materials and production processes strengthen the monitoring and
Safety and Health management of hazardous chemicals and ensure the safety of both
design and manufacturing processes as well as chemical safety.The Group's R&D investment reached RMB 909million accounting for
Increasing 5.27% of operating revenue; cumulative R&D investment over the past
Investment in R&D five years totaled RMB 5.089 billion placing us at the forefront of the
and Innovation industry; we launched 84 new R&D projects and brought 17 new
product lines to market.Products and We are comprehensively improving product accessibility across brand
Services Enhancing Product awareness and trust product diversity affordability service
Accessibility accessibility supply chain and delivery after-sales service and industrysupport committed to providing satisfactory products and services to a
wider range of customers with diverse needs.Continuously We actively reformed our after-sales service system and established a
Improving the rapid response mechanism for consumer feedback. The Group's
Customer Service consumer evaluation trends have shown positive growth with basic
System service satisfaction reaching 8.59 points and product quality reputationreaching 8.79 points.Strengthening We continued to increase investment in information technology with a
Information Security total of RMB 1.9402 million allocated to the development of our
and Privacy information security system. No apps related to our business were
Protection publicly cited or removed by national regulatory authorities and no databreaches occurred.Ensuring Fair and The labor contract signing rate reached 100% for the entire year with
Employees and Equitable no incidents of human rights violations or discrimination identified; the
Society Employment company was awarded the honorary title of "2025 Guangdong
Practices Outstanding Employer of the Year."
15OPPEIN Home Group Inc.
UN
Category Sustainable OPPEINDevelopment Sustainability Goals Progress Toward 2025 Goals
Goals
Enhancing Employee The annual performance management system coverage rate reached
Compensation and 100% and social insurance coverage was 100%; approximately RMB
Benefits 86 million was invested in employee welfare programs with an averageof 5.62 days of paid annual leave per employee.Prioritizing Total employee training hours for the year reached 575301 including
Employee 481038 hours of in-person training and 94263 hours of online training
Development and with an average of 32.18 training hours per employee; RMB 5.508
Training million was invested in vocational training.A total of 246449 hours of EHS training were conducted throughout the
Ensuring Employee year reaching 121220 participants with an EHS training coverage rate
Occupational Health of 100%; no work-related safety incidents occurred and the injury rate
and Safety per million working hours decreased by 37.83% year-over-year; therewere no work-related fatalities; and there were zero new cases of
occupational diseases.Employee satisfaction stood at 80.11% and employee engagement at
Facilitating 80.41%; 1414 employee suggestions were received throughout the year
Employee with a total of 1411 suggestions (including those carried over from
Communication and 2024) processed; 848 suggestions (Category A) were adopted and
Suggestion Channels yielded results; the response rate and closure rate for requests on the
online platform both reached 100%.We established a "2+3+X" public welfare brand matrix and continued to
carry out distinctive public welfare activities such as rural revitalization
Increasing and educational assistance. As of the end of 2025 the Guangzhou
Investment in OPPEIN Public Welfare Foundation had received cumulative donations
Community of RMB 51.5814 million and made public welfare expenditures of RMB
Development and 45.6727 million; Donations for educational assistance and guidance
Philanthropy totaled RMB 3.3367 million for the year while investments in ruralrevitalization projects amounted to RMB 2.0714 million; during the
same period four volunteer activities were conducted involving 40
participants and accumulating 278 hours of service.
1.3.4. Stakeholder Engagement
The Group deeply recognizes that proactive and effective stakeholder engagement is key to identifying
sustainability impacts risks and opportunities as well as driving continuous improvement within the
company. The Group is committed to establishing a systematic institutionalized and routine stakeholder
engagement mechanism. Through diverse channels and methods the Group actively listen to identify
and address the core concerns of all stakeholders integrating the outcomes of these engagements into the
company's strategic decision-making and daily operations to achieve the creation of shared value.
1.3.4.1. Systematic Communication Mechanisms and Processes
The Group has built a stakeholder communication system covering identification communication
response and feedback. It clarifies stakeholder categories and core concerns while standardizing regular
two-way communication mechanisms. Stakeholder communication has been embedded in core
management systems including the Investor Relations Management System Environmental
Management Manual and Quality Manual. These frameworks define communication content channels
and approaches for shareholders and investors and specify information exchange procedures with
16OPPEIN Home Group Inc.
government bodies and local communities. Through regular disclosures shareholder meetings supplier
and dealer assemblies staff representative conferences and community outreach the Group maintains
ongoing dialogue with all stakeholders.
1.3.4.2. Diversified Communication Channels
The Group has established differentiated communication channels tailored to the characteristics and
needs of different stakeholders and responds precisely to their core concerns.Communication Channels and
Stakeholders Key Concerns
Methods
Corporate Governance
Sustainability Governance
Risk Management and Compliance
Regulatory Filings
Intellectual Property Protection
Submission and Mailing of Information or
Government and Climate Change Risks and Opportunities
Reports
Regulatory Water Use and Management
Special meetings
Authorities Energy Consumption and Management
Surveys
Carbon Emissions Management
Disclosure
Pollutant Control
Occupational Health and Safety
R&D and Innovation
Corporate Governance
Sustainability Governance Disclosure
Risk Management and Compliance Annual General Meeting
Business Ethics Earnings Briefings
Shareholders
Climate Change Risks and Opportunities Investor Engagement Activities
and Investors
Carbon Emissions Management SSE e-Interaction Platform
Product Safety and Quality Official Website and Investor Relations Hotline
R&D and Innovation or Email
Occupational Health and Safety
Climate Change Risks and Opportunities
Green and Environmentally Friendly
Official Website Official Weibo and Customer
Production
Service Hotline
Product Safety and Quality
Customers Social Media Engagement
Protection of Customer Rights
Customer Complaints and Follow-ups
Information Security and Privacy Protection
Satisfaction Surveys
Responsible Marketing
Raw Material Use and Management
17OPPEIN Home Group Inc.
Communication Channels and
Stakeholders Key Concerns
Methods
Training and Career Development Employee Representative Assembly
Occupational Health and Safety Employee Feedback Service Center
Employees Compliance and Equal Opportunity Employee Training
Compensation Benefits and Performance Employee Activities
Employee Communication and Grievances OPLINK Platform
Supplier Management Supplier ESG Assessment and Support
Corporate Ethics Supply Chain Reform Updates
Climate Change Risks and Opportunities SRM Platform
Responsible Sourcing Supply Chain Digital Platform
Suppliers Product Safety and Quality Supplier Conference
Occupational Health and Safety Supplier Visits
Use and Management of Raw Materials Supplier Training
Supplier Conflict Minerals Management Open Bidding
Supplier ESG Management Survey
Product Safety and Quality Official Website Official Weibo and Customer
Information Security and Privacy Service Hotline
Climate Change Risks and Opportunities Disclosure
Distributors and
Responsible Marketing Dealer Conference
Other Partners
Research Development and Innovation Dealer Visits
Compliance Employment and Equal Dealer Training
Opportunity Dealer Satisfaction Survey
Community Engagement
Occupational Health and Safety
Compliance Employment and Equal
Opportunity Official Website Official Weibo and Customer
Climate Change Risks and Opportunities Service Hotline
Water Use and Management Community Initiatives
Community and Energy Consumption and Management Educational Assistance
Environment Raw Material Use and Management Donations for Rural Revitalization
Carbon Emissions Management Disclosure
Pollution Prevention and Control Site Visits
Waste Treatment
Green and Environmentally Friendly
Production
Ecosystem and Biodiversity Conservation
1.3.5. Materiality Assessment
OPPEIN attaches great importance to identifying and assessing sustainability issues which underpins
effective governance precise strategy formulation and scientific management. Based on GRI Standards
and the Dual Materiality principle in the Shanghai Stock Exchange’s relevant guidelines (Revised
18OPPEIN Home Group Inc.
January 2026) it conducts annual systematic identification assessment and prioritization of issues using
the previous year’s materiality analysis results to pinpoint issues significantly affecting its long-term
value creation economy society and environment as the core of sustainability management and
reporting.* We conduct in-depth analyses of ESG-related laws regulations and development trends benchmarking
against 21 core topics in the Shanghai Stock Exchange’s sustainability report guidelines and GRI standards
to ensure compliance and international comparability.* We comprehensively review our business model operations strategy and financing activities extending
analysis across the entire product lifecycle (procurement production logistics sales use and disposal) to
Identification identify actual and potential impacts.* Wemonitor and analyze peer sustainability practices referencing industry reports and rating methodologies
to identify key and emerging industry issues.* Through multi-dimensional screening we have initially established an annual ESG sustainability issue
database (covering climate change product safety supplier management corporate governance labor
compliance and equal opportunity) laying the foundation for subsequent materiality assessments.* We collected internal and external stakeholder feedback combined with sustainability experts’
recommendations identified and analyzed issue importance from the "financial materiality" and "impact
materiality" perspectives then prioritized them.* Impact Materiality Assessment evaluates the company’s ESG performance impact on each issue
considering scale scope irremediable nature and likelihood.. We collect extensive stakeholder feedback
via surveys roundtables and interviews as a key assessment basis.Assessment
* Financial Materiality Assessment judges whether each issue will have material financial impacts on the
Group’s business model operations strategy finances and financing costs in short-to-long term. We
analyze potential financial risks/opportunities by integrating internal financial data risk management and
strategic planning setting thresholds based on the Group’s financial management materiality levels.* We integrate the results of the "impact materiality" and "financial materiality" assessments to create a
"Double Materiality Matrix."
19OPPEIN Home Group Inc.
* The Group's Board of Directors and its Strategic and Sustainability Committee are responsible for the final
review and approval of the assessment process methodology and results for annual material issues
ensuring that the assessment is scientific objective and aligned with the Group's overall strategy.* The "Double Materiality Matrix" confirmed by the Board of Directors serves as the core basis for the Group
Disclosure
to formulate annual sustainability strategies targets resource allocation plans and internal assessment
mechanisms. At the same time this matrix directly determines the disclosure framework and key content
of the Group ensuring that the report addresses the concerns of core
stakeholders and complies with regulatory disclosure requirements.
20OPPEIN Home Group Inc.
No. Category OPPEIN 2025 Materiality Issues Matrix
1 Corporate Governance
2 Sustainability Governance
3 Governance Risk Management and Compliance
4 Business Ethics
5 Responsible Marketing
6 Addressing Climate Change
7 Water Use and Management
8 Energy Consumption and Management
9 Raw Material Use and Management
10 Environment Carbon Emissions Management
11 Pollutant Control
12 Waste Management
13 Green and Environmentally Friendly Production
14 Circular Economy
15 Responsible Sourcing
Supply Chain
16 Supplier Management
17 Product Safety and Quality
18 R&D and Innovation
19 Products and Services Intellectual Property Protection
20 Customer Rights Protection
21 Information Security and Privacy Protection
22 Training and Career Development
23 Occupational Health and Safety
24 Compliance and Equal Opportunity
Employees and Society
25 Compensation Benefits and Performance
26 Employee Communication and Grievances
27 Social Contribution
21OPPEIN Home Group Inc.
2. GOVERNANCE
OPPEIN has established a sound corporate governance system. On the basis of ensuring the independent
operation mutual check and balances as well as effective cooperation of all governance entities it
continuously updates management systems and optimizes the governance structure and deeply integrates
the ESG philosophy into the governance system. By improving the corporate governance system
enhancing risk control and compliance management capabilities and strengthening effective supervision
over business ethics matters including anti-corruption anti-unfair competition and responsible
marketing OPPEIN ensures the stable and sound operation of the Group and creates long-term value for
stakeholders such as shareholders customers and employees.
2.1. Corporate Governance
A scientific and sound corporate governance mechanism serves as the foundation and guarantee for the
sustainable and healthy development of an enterprise. The Group regards corporate governance as a long-
term systematic project. In strict compliance with relevant laws regulations and regulatory documents
and in light of its actual operation conditions the Group continuously refines its governance structure
and practices. By strengthening the operational efficiency of professional committees standardizing the
senior management compensation system consolidating the responsibility of information disclosure and
establishing an efficient investor communication mechanism we comprehensively elevate the overall
governance level and build a healthy and sustainable corporate governance ecosystem.
2.1.1. Governance Structure
The Group has established a modern corporate governance structure consisting of the Shareholders'
Meeting the Board of Directors and its special committees as well as the senior management. In strict
accordance with the "Company Law of the People's Republic of China" the "Securities Law of the
People's Republic of China" the "Code of Corporate Governance for Listed Companies" the "Listing
Rules of the Shanghai Stock Exchange" and the "Self-Regulatory Supervision Guidelines for Listed
Companies of the Shanghai Stock Exchange No. 1 — Standardized Operation (Revised in May 2025)"
the Group regularly updates its corporate governance institutional system.In terms of operational mechanisms the Group holds meetings according to standardized procedures for
22OPPEIN Home Group Inc.
the Shareholders' Meeting the Board of Directors and its special committees makes scientific
management decisions and strengthens operational supervision. During the reporting period the Group
timely revised corporate governance documents including the "Articles of Association of OPPEIN
Group" the "Rules of Procedure for the Shareholders' Meeting of OPPEIN Group" the "Rules of
Procedure for the Board of Directors of OPPEIN Group" the "Working Rules of the Board Strategy and
Sustainable Development Committee of OPPEIN Group" and the "Working System for the Secretary to
the Board of Directors of OPPEIN Group" so as to continuously enhance the efficiency of corporate
governance.Corporate Governance Chart
2.1.2. Governance Practices
2.1.2.1. Shareholders' Meeting
The shareholders' meeting is the highest authority of the Company. In accordance with the "Guidelines
for the Articles of Association of Listed Companies" the "Rules for Shareholders' Meetings of Listed
Companies and the Articles of Association" the Group has dynamically revised the "Rules of Procedure
for the Shareholders' Meeting of OPPEIN Group" and the "Detailed Rules for the Implementation of
Cumulative Voting System" at the Shareholders' Meeting of OPPEIN Group strengthening the
institutional foundation of corporate governance.
23OPPEIN Home Group Inc.
The shareholders' meeting exercises its functions and powers within the scope stipulated by laws
regulations and corporate governance documents. All procedures including the convening proposal
submission notification holding of meetings voting procedures and resolution formulation are
conducted in strict compliance with applicable laws regulations and regulatory requirements.Meanwhile the eligibility of attendees and conveners of the shareholders' meeting is ensured to be legal
and valid the voting procedures are fair and transparent and the resolutions are authentic legitimate and
effective thereby effectively safeguarding the legitimate rights and interests of all shareholders.The shareholders' meeting adopts a combined method of on-site registered voting and online voting
ensuring that all investors can fully exercise their rights and safeguarding shareholders' right to know
right to participate and right to vote. In addition when the shareholders' meeting deliberates on major
matters affecting the interests of minority investors the voting of minority shareholders shall be counted
separately and the separate voting results shall be publicly disclosed so as to fully protect their legitimate
rights and interests.During the reporting period the Group convened 5 shareholders' meeting sessions including 1 annual
meeting and 4 extraordinary meetings with a total of 19 proposals reviewed.
2.1.2.2. Board of Directors
The Board of Directors is the permanent decision-making body of the Company. In accordance with the
requirements of the "Company Law" and the "Articles of Association" the Group has formulated the
"Rules of Procedure for the Board of Directors" and the "Working System for Independent Directors"
standardizing the conduct of the Board and its members and ensuring the democratization and
scientification of the Group’s decision-making. In 2025 the Group completed the re-election of members
of the Fifth Board of Directors. The Fifth Board consists of seven directors including one Chairman two
Vice Chairmen one employee director and three independent directors (including one accounting
professional). Directors serve a term of three years and may be re-elected upon the expiration of their
term while the consecutive tenure of independent directors shall not exceed six years. The average tenure
of Board members stands at 6.22 years.During the reporting period the Group held 14 meetings of the Board of Directors and reviewed a total
of 58 proposals with the attendance rate of Board members reaching 100%.? Construction of the Independence of the Board of Directors
24OPPEIN Home Group Inc.
In advancing the independence development of the Board of Directors the Group always adheres to
standardized operation strengthens the check and balance mechanisms and continuously improves the
objectivity and credibility of the Board’s decision-making. By setting up special committees and
introducing the independent director system the Group ensures that strategic decisions strike a balance
between innovation and risk control. During the reporting period independent directors accounted for
42.86% of all Board members. The qualifications number and proportion of independent directors fully
comply with the "Administrative Measures for Independent Directors of Listed Companies" and other
relevant regulatory provisions providing a solid institutional guarantee for the scientific decision-making
of the Board of Directors.? Construction of the Diversification of the Board of Directors
In the construction of the diversification of the Board of Directors the Group has achieved a balanced
allocation of Board members in multiple dimensions including age professional and cultural
background. The current Board members have an age range of 45 to 61 years old with professional
backgrounds covering fields such as mechanical manufacturing aerospace engineering philosophy
literature economics and law; among them many directors possess cross-industry and diversified
management experience. This diversified member structure has effectively improved the inclusiveness
and forward-looking perspective of strategic planning. In the future the Group will continue to optimize
the construction and evaluation of the diversification of the Board of Directors and strengthen the in-
depth integration of the Board's global vision and industry insights.? Building the Effectiveness of the Board of Directors
The Group regards the building of the effectiveness of the Board of Directors as a core driver for
improving corporate governance standards. In strict compliance with the requirements of the newly
revised "Company Law" the Group legally abolished the Supervisory Board in 2025 fully integrating
supervisory functions into the Audit and Risk Management Committee of the Board of Directors and
establishing a new single-tier governance model featuring in-depth integration of decision-making and
supervision clear rights and responsibilities and efficient operation. In terms of capacity improvement
the Group continuously organizes special training for directors and senior management to further deepen
awareness of standardized operation. In terms of operational mechanisms the Group dynamically revises
and improves the "Rules of Procedure for the Board of Directors" and the working rules of each special
25OPPEIN Home Group Inc.
committee strengthens professional support enhances the quality and efficiency of performance of
duties and steadily elevates the standardized operation and scientific decision-making level of the Board
of Directors.
2.1.2.3. Senior Management
The senior management of the Group consists of the General Manager Deputy General Managers
Secretary to the Board and Chief Financial Officer serving as the core force for the Company’s strategy
implementation and daily operation. The senior management takes overall charge of the Group’s
production and business management is responsible for organizing the implementation of Board
resolutions annual business plans and investment schemes formulating specific management systems
and exercising other functions and powers conferred by the "Articles of Association" in accordance with
the law. During the reporting period the Group had 4 members in senior management including 2 female
executives accounting for 50% of the total. This reflects the Group’s outstanding gender balance and
inclusive governance philosophy in key leadership positions.
2.1.3. Responsibilities of Specialized Committees
The specialized committees under the Group’s Board of Directors perform their duties in accordance
with the "Articles of Association" and carry out specific work pursuant to their respective working rules
facilitating scientific decision-making and standardized operation of the Board. All members of the
specialized committees are directors with their composition appropriately balanced in terms of
diversified skills experience and perspectives. In the Audit and Risk Management Committee the
Nomination Committee as well as the Remuneration and Evaluation Committee independent directors
account for two-thirds of the membership and serve as conveners. The convener of the Audit and Risk
Management Committee is an accounting professional.During the reporting period the Audit and Risk Management Committee held 4 meetings the
Nomination Committee held 2 meetings the Remuneration and Evaluation Committee held 2 meetings
and the Strategy and Sustainable Development Committee held 1 meeting with a total of 24 proposals
reviewed.
26OPPEIN Home Group Inc.
Specialized
Key Responsibilities Members
Committees
* Responsible for reviewing the Company’s financial information
and its disclosure as well as supervising and evaluating internal
Chairman:
and external audit work and internal control.Audit and Risk Wang Wei*
* Disclosing financial information in financial accounting reports
Control Members:
and periodic reports as well as the internal control evaluation
Committee Li Xinquan*
report.Zhang Xiuju
* Employing or dismissing accounting firms undertaking the
Company’s audit business and the Chief Financial Officer.* Conducting research and providing recommendations on the
company’s long-term development strategies major investment
decisions and environmental social and corporate governance
(ESG) initiatives.
* Analyzing major investment and financing proposals requiring Chairman: Yao
Strategy and
Board approval under the Articles of Association and submitting Liangsong
Sustainability
recommendations. Members:
Management
* To research sustainable development management objectives and Yao Liangbai
Committee
material issues participate in the assessment screening and Lu Xiaodong*
management of impacts risks and opportunities of highly
material sustainable development issues and supervise the target
setting of sustainable development-related risks and
opportunities.* Formulate assessment criteria for directors and senior
management and conduct assessments.* Formulate and review remuneration policies and plans for
directors and senior management including the remuneration
determination mechanism decision-making process payment Chairman:
Compensation and suspension of payment and recovery arrangements. Li Xinquan*
Assessment * Formulate or modify equity incentive plans and employee stock Members:
Committee ownership plans and verify the achievement of conditions for Wang Wei* Yao
incentive recipients to be granted and exercise rights and Liangbai
interests.* Provide opinions and suggestions on directors' and senior
management's participation in the stock ownership plans
arranged for the proposed spin-off of affiliated subsidiaries.* Formulate the selection criteria and procedures for directors and
Chairman:
senior management.Li Xinquan*
Nomination * Screen and review the candidates and qualifications of directors
Members:
Committee and senior management.Tan Qinxing Lu
* Nominate or appoint/remove directors and employ or dismiss
Xiaodong*
senior management.Note: * is an independent board member of the Group.
27OPPEIN Home Group Inc.
2.1.4. Executive Compensation Management
The Group strives to build a trinity governance model of "responsibility-capability-value" and closely
links the remuneration of directors and senior management with the Company’s operating results and
long-term value goals. In accordance with the "Code of Corporate Governance for Listed Companies"
the "Articles of Association" and other relevant regulations the Group has formulated the "OPPEIN
Home Group Remuneration Management Regulations" and the "Measures for the Remuneration
Assessment and Administration of Directors (Non-independent Directors) and Senior Management of
OPPEIN Home Group" in light of its business philosophy and actual management practices. It has
established a remuneration and performance management system aligned with job value corporate
development and individual performance and clarified the performance appraisal and evaluation
procedures for directors and senior management. The Board has set up a Remuneration and Assessment
Committee which discusses and reviews remuneration-related matters on an annual basis. The
remuneration of non-independent directors and senior management upon deliberation and approval by
the Committee shall be submitted to the Board of Directors or the General Meeting of Shareholders for
review and final decision in accordance with respective authority.During the reporting period in conjunction with the re-election of the Board and in compliance with the
latest regulatory requirements the Group further standardized the assessment and incentive arrangements
for directors and senior management. By continuously optimizing the remuneration and incentive system
for directors supervisors and senior management the Group implements a linkage mechanism between
remuneration individual performance and the achievement of job responsibilities targets for serving non-
independent directors and senior management. In particular ESG management is designated as a key
assessment indicator for directors and senior management in charge of corresponding business areas.This fully stimulates their awareness of innovation and transformation facilitates the delivery of high-
performance targets improves the Group’s comprehensive performance in environmental social and
corporate governance dimensions and further promotes the Group’s sustainable development.
28OPPEIN Home Group Inc.
Remuneration and Evaluation Committee
2.1.5. Information Disclosure
The Group attaches great importance to information disclosure strictly fulfills its information disclosure
obligations and establishes and implements the information disclosure goal of " zero amendments zero
revisions and zero regulatory inquiries". By continuously improving the investor-centric disclosure
mechanism the Group constantly enhances information transparency and disclosure quality and actively
builds a solid defense line to safeguard the rights and interests of investors. In strict compliance with the
requirements of regulations such as the "Measures for the Administration of Information Disclosure by
Listed Companies" and the "Shanghai Stock Exchange Listing Rules" the Group has formulated
information disclosure-related systems including the "Information Disclosure Affairs Management
System" and the "Information Disclosure Suspension and Exemption System" established an
information-based information disclosure process realized comprehensive control and tracking of
information disclosure pursued true accurate complete timely and fair information disclosure and
ensured that there are no false records misleading statements or material omissions in information
disclosure. In addition the Company completes the registration submission and management of insiders
of inside information at all stages in accordance with regulations. Meanwhile the Group focuses on
investor needs continuously improves the readability and effectiveness of announcements and further
enhances the Company's information transparency.The Group continuously enhances the quality of information disclosure with high standards. On the one
hand it coordinates the balance between statutory disclosure and voluntary disclosure strictly fulfills its
statutory obligations of information disclosure while proactively responding to investor concerns
29OPPEIN Home Group Inc.
implements full and fair disclosure in accordance with the principle of "disclosing all that should be
disclosed and making transparent all that should be transparent" and creates an open transparent and
predictable capital market image; on the other hand it continuously improves the professionalism and
standardization of information disclosure in-depth analyzes investors' reading habits and information
acquisition preferences optimizes the content of announcements and helps investors efficiently obtain
the Company's operational dynamics and development strategies through a clearer structure and more
popular language.During the reporting period the Group carried out high-quality information disclosure work releasing a
total of 181 announcements and online documents including 4 periodic reports (including the annual
report) and 1 ESG report actively presenting the Company's development dynamics and operating results
to the market and conveying the Company's value. The Group once again obtained an A-level rating in
the "2024-2025 Information Disclosure Work Evaluation Results for Main Board Listed Companies on
the Shanghai Stock Exchange" and the proportion of companies with A-level rating among Shanghai-
listed companies was 19%. Since 2018 the Group has won the A-level rating for information disclosure
work of the Shanghai Stock Exchange for seven consecutive years and only 22 companies on the
Shanghai Stock Exchange have obtained the A-level rating for seven consecutive years accounting for
less than 1%.
2.1.6. Investor Relations
Investors are the foundation of capital market development. It is the listed company’s bounden
responsibility to drive high-quality development enhance investors’ sense of gain and enable them to
share the fruits of corporate growth. Upholding the investor-oriented philosophy the Group deeply
integrates the tenet of "respecting revering and protecting investors" into corporate culture actively
listening to investors’ views and responding to their concerns. In terms of institutional development the
Group has formulated and implemented the "Market Value Management System" "Investor Relations
Management System" and "News Communication and Crisis Public Relations Management Rules"
establishing a standardized investor relations management system to smooth communication channels
and strengthen the protection of investors’ rights and interests. In terms of value return the Group
diligently fulfills its primary responsibility for high-quality development and issued the "Three-Year
Shareholder Dividend Return Plan (2024–2026)" the "2025 Quality Improvement Efficiency
30OPPEIN Home Group Inc.
Enhancement and Shareholder Return Action Plan" and the "Announcement on the 2025 Interim
Dividend Plan". By clarifying future profit distribution arrangements and taking concrete actions the
Group effectively boosts investors’ sense of gain and comprehensively elevates its investment value.
2.1.6.1. Investor Communication
The Group values every investor’s opinion and actively carries out various online and offline investor
communication activities. Through the SSE E-Interactive platform investor exchange meetings
shareholders’ meetings roadshows and other channels the Group delivers corporate value to the capital
market at multiple levels and via diverse approaches enhancing investors’understanding and recognition
and building a sound market reputation. The Group has also established an investor consultation and
feedback mechanism. For market-focused hot topics it takes the initiative to engage with investors
collects their suggestions and regularly reports to senior management via monthly reports realizing
efficient internal and external information communication.During the reporting period the Group held 3 performance briefings. The Chairman independent
directors Chief Financial Officer and Secretary to the Board interacted with investors through live
streaming and text communication. The cumulative online views of the live broadcasts exceeded 133000.A total of 27 investor questions were answered on the SSE E-Interactive platform achieving a "100%
response rate".Investor Communication Channels
SSE E-Interactive Platform: https://sns.sseinfo.com/
Investor Hotline: 020-36733399
Investor Relations Email:OPPEINir@OPPEIN.com
31OPPEIN Home Group Inc.
Case: Holding the 2025 Half-Year Performance Briefing
In September 2025 the Group held the "2025 Half-Year Performance Briefing". Yao Liangsong
Chairman and President of the Group Lu Xiaodong Independent Director Wang Huan Chief
Financial Officer and Ou Yingying Secretary to the Board of Directors attended the meeting. Within
the scope of information disclosure compliance they communicated and answered questions of
general concern to investors helping them gain a more in-depth and comprehensive understanding of
the Company’s operating conditions.
2.1.6.2. Enhance Shareholder Returns
Since its listing the Group has firmly established a commitment to shareholder returns closely
monitored the capital market's evaluation of the company's value and continuously improved the level
of cash dividends in combination with fund usage arrangements and operational development needs. In
accordance with the relevant provisions such as the "Notice on Further Implementing Matters
Concerning Cash Dividends of Listed Companies" and "Regulatory Guidelines for Listed Companies
No. 3 – Cash Dividends of Listed Companies" the Group has formulated a prudent and proactive cash
dividend policy.As the first listed company in the industry to launch the "Quality Improvement and Efficiency
Enhancement Action Report the Three-Year (2024-2026) Dividend Plan" (fixed amount) and formulate
the "Market Value Management System" the Group has strived to stabilize investors' return expectations
during market fluctuations through share repurchases dividend plans and other measures. The Group
reviewed and adopted the "Three-Year (2024-2026) Shareholder Dividend Return Plan" which clearly
32OPPEIN Home Group Inc.
states that from 2024 to 2026 the total annual cash dividend to be distributed shall not be less than RMB
1.5 billion (inclusive of tax) in principle. With the disclosure and implementation of the "Three-Year
(2024-2026) Shareholder Dividend Return Plan" the continuity and predictability of the company's cash
dividend policy have been institutionally strengthened significantly enhancing investors' confidence and
predictability in the company's future investment returns.During the reporting period the Group successfully completed the implementation of the 2024 equity
distribution and steadily implemented the 2025 interim dividend plan continuously optimizing the
shareholder return system.Cash Dividend Performance of the Group in the Past Three Years
KPI 2025 2024 2023
Cash Dividend per Share (RMB) (Tax Included) 2.477 2.48 2.76
Total Cash Dividends (RMB 100 Million) 15.00 15.02 16.70
Ratio of Total Cash Dividends to Net Profit
Attributable to Parent Company Shareholders in the 75.14% 57.80% 55.00%
Current Period (%)
2.2. Risk and Compliance Control
Faced with a severe and complex market environment the Group adheres to a bottom-line mindset and
comprehensively upgrades its risk control system to consolidate the internal control line of defense. It
has formulated systematic risk management strategies and strengthened the function of internal audit
supervision enabling accurate identification and dynamic control of risks throughout the entire
operational process. Meanwhile the Group incorporates environmental social and governance (ESG)
risks into its core governance scope. Through proactive response mechanisms the Group safeguards its
sustained steady and high-quality development.
2.2.1. Risk Management
The Group and its subsidiaries strictly abide by existing internal policies and supporting risk management
procedures including the "Risk and Opportunity Management System" "Risk and Opportunity
Identification and Evaluation Management Procedures" and "Internal Control Management System".
33OPPEIN Home Group Inc.
Focusing on the development of the risk and compliance control system the Group timely updates its
risk and compliance control framework map.Guided by risk prevention and targeting management efficiency improvement through process
optimization the Group integrates risk management into actual business workflows and clarifies the
responsible departments for risk and opportunity management. The Board of Directors has established
an Audit and Risk Management Committee which oversees and evaluates the Company’s internal
control. It is tasked with promptly identifying major internal control deficiencies and issuing early
warnings against potential material risks. The Internal Audit Department and Supervision Department
have set up an internal control self-assessment working group to conduct internal inspections and
supervision drive problem identification and rectification and continuously enhance the Group’s overall
business coordination capability and risk resilience. All departments formulate methods for identifying
and responding to risks and opportunities confirm inherent risks within their respective functions and
record evaluation results in the "Risk and Opportunity Identification Analysis and Evaluation Form" so
as to fully identify and address risks and opportunities arising from production and management activities.The Group sets strategic objectives in accordance with its risk appetite and adopts a standardized risk
control process of risk factor identification — risk management planning — risk response evaluation —
risk operation monitoring committing to closed-loop management of risk incidents. Going forward the
Group will further improve its risk assessment and early warning mechanism comprehensively
strengthen pre-event risk prevention and compliance oversight and establish an abnormal risk disposal
system. With comprehensive systematic and in-depth strategies the Group will ensure steady business
development in a legal and compliant manner and provide solid legal safeguards for its sustainable and
prosperous growth.Risk Factor Identification→Risk Management Planning→Risk Response Evaluation→Risk Operation
Monitoring
Closed-Loop Management of Risk Events
2.2.2. Internal Control
The Group strictly complies with guiding norms such as the "Basic Norms for Enterprise Internal
Control" strengthens the supervision and audit mechanism enhances the ability to control the
performance of business and personnel and further improves the level of internal control management.
34OPPEIN Home Group Inc.
On this basis the Group has comprehensively upgraded its contract management system vigorously
promoted the application of electronic seals realized the electronic signing function for high-frequency
contract scenarios and solidified the seal usage process through technical means building a compliant
signing line of defense for the Group in the digital era. In promoting the integration of internal control
self-evaluation and ESG combined with the Group's business characteristics and internal control
construction the Group divides the internal control self-evaluation business into 24 modules. Among
them the high-risk areas related to ESG mainly include 8 major modules: group governance contract
management sales and collection management procurement and payment management quality
management research and development management human resource management and work safety
and environmental protection management all of which have corresponding internal control
management measures or norms established.ESG-related
internal control Key risk factors Management and control measures
modules
To improve the company's institutional system
standardize production and operations refine the
Group Corporate corporate governance structure conduct management
Governance Governance Risks decisions and operational supervision in accordance with
regulations and continuously enhance the company's
governance level.To build a work environment that upholds integrity
fights corruption and embodies an "Integrity Culture"
Contract the Group incorporates integrity cooperation
Business Ethics Risks
Management commitments into procurement contracts conducts
regular internal audits of business ethics and strengthens
visits to suppliers and distributors.Strengthen the prevention of operational risks and daily
Sales and
Dealer Management management of distributors timely judge the operational
Collection
Risks status of distributors conduct regular assessments of
Management
them and promptly handle their irregular behaviors.Build a supply chain system matching the general home
Procurement and
Supplier Management business model strengthen the access review and
Payment
Risks performance evaluation of suppliers and continuously
Management
practice responsible procurement.
35OPPEIN Home Group Inc.
ESG-related
internal control Key risk factors Management and control measures
modules
Establish an integrated quality assurance system carry
out a series of quality reform projects optimize the
Quality quality management process and improve the quality
Product Quality Risks
Management management level throughout the entire product life
cycle including product R&D production logistics and
sales.Improve the research and development incentive
mechanism actively invest R&D funds in the
Research and development of new technologies and new products
Development Risks introduce and cultivate R&D talents and enhance
independent R&D capabilities and employees'
Research and
innovation capabilities.Development
Establish an intellectual property management system to
Management
conduct unified management of ownership
Intellectual Property confidentiality data and infringement issues. Timely
Protection Risks register intellectual property rights such as patents and
trademarks to prevent the loss of the Group’s intangible
assets.Improve labor systems covering employment
remuneration and performance appraisal fully safeguard
Human Resource Labor Relations employees' legitimate rights and interests conduct
Management Risks regular surveys on employee engagement and
satisfaction and maintain sound communication with
employees through multiple channels.Actively carry out various emergency drills regularly
arrange occupational physical examinations for
Occupational Health
employees eliminate occupational hazard factors in the
and Safety Risks
Work Safety and workplace and minimize the occurrence of work-related
Environmental injuries.Protection Continuously adjust the energy structure and optimize
Management resource utilization. By promoting energy conservation
Climate Change
and consumption reduction across the Group and
Risks
adopting renewable energy the Group enhances its
resilience to climate change.Note: For the governance of climate change risks please refer to the section on Climate Change Response in this
report.
2.2.3. Capability Building
36OPPEIN Home Group Inc.
The Group continuously strengthens the development of risk and compliance capabilities and enhances
the operation and maintenance management of the risk and compliance platform. Meanwhile it improves
the organization and talent management for risk and compliance conducts targeted enabling courses on
risk and compliance strengthens employees’ awareness of risk prevention and compliance and fully
consolidates the foundation for the Group’s steady development.The Group regularly delivers contract and legal training targeting high-risk business scenarios and
regulatory updates. Content spans electronic signing operations legal interpretation case studies e-
commerce compliance lease contracts and official correspondence. It keeps employees updated on the
latest rules strengthens legal awareness and underpins stable corporate operation. During the reporting
period 13 legal training sessions were held totaling 50 hours with 230 participants. Directors
supervisors and senior managers also attended specialized training hosted by stock exchanges listed
company associations and the Company covering periodic reporting investment and M&A and the new
Company Law to elevate overall compliance governance capabilities.Case: Conducting E-commerce Product Compliance Training
In January 2025 the Group’s Legal Department held targeted training on e-commerce product
compliance risks. Participants included staff from home products electrical e-commerce
accessories development and electrical planning departments. The training covered key
compliance requirements on certification labeling norms and entrusted cooperation risks and
clarified authority and liability boundaries for producers manufacturers and entrusting parties. It
helps prevent legal disputes arising from non-standard labeling and improper promotion
strengthens compliance awareness across business teams and supports sound regulated
development of the Group’s e-commerce business.
37OPPEIN Home Group Inc.
2.3. Business Ethics
The Group attaches great importance to the construction of business ethics and has always adhered to the
management philosophy of "Fairness Transparency Cooperation and Freedom".At the institutional level
it has established and improved an anti-corruption system and supervision mechanism continuously
improved internal guidelines and codes of conduct and strengthened the whistle-blower protection
mechanism to lay a solid foundation for compliance. At the operational level it has deeply integrated
fair competition and responsible marketing into the management system resolutely eliminated false
publicity and resisted all improper behaviors that restrict market competition. The Group is committed
to promoting the "Integrity-based Business" culture building a normalized work order of "upholding
integrity fighting corruption and taking the right path" and striving to create a fair and healthy business
environment to escort the high-quality development of the Group.
2.3.1. Anti-Corruption
The Group upholds the core philosophy of honest operation and integrity in employment and has
formulated a series of anti-corruption management systems including the "OPPEIN Home Group
Integrity Management Regulations" "OPPEIN Home Group Reward and Punishment Management
Regulations" and "OPPEIN Home Group Gift Surrender Management Norms" clarifying the
requirements responsibility division and punishment standards for anti-corruption work. All on-the-job
employees are required to sign the "OPPEIN Home Group Cadre and Employee Integrity Confirmation
Letter" with the Group strengthening employees' awareness of integrity in employment and building a
solid integrity defense line through the combination of self-discipline and external supervision. The
Group adopts a "zero-tolerance" attitude towards all forms of corruption strictly adheres to the rigid
punishment principle of "Four Regardles" (regardless of position rank contribution or relationship)
severely cracks down on various corrupt behaviors and strives to build a comprehensive anti-corruption
system of "self-discipline and supervision of others joint prevention and co-governance" to safeguard
the bottom line of the Group's compliant operation.During the reporting period the signing rate of the "Integrity Confirmation Letter" among all employees
of the Group reached 100% effectively implementing the requirements of integrity in employment; at
the same time relying on the solid results of anti-corruption work it won the 2025 OPPEIN Group
Special Contribution Third Prize the 2025 Anti-Fraud Alliance Integrity Style Creative Award and the
38OPPEIN Home Group Inc.
2025 Anti-Fraud Alliance Integrity Newcomer Award demonstrating the Group's firm determination to
practice honest operation.
2.3.1.1. Joint Prevention and Co-governance Anti-corruption System
* All OPPEIN employees and pan-OPPEIN business partners have the obligation to report
violations disciplinary breaches fraud corruption and illegal acts related to OPPEIN's business
that they are aware of so as to jointly maintain the "fair and honest" management order and
competitive environment inside and outside the Group.
39OPPEIN Home Group Inc.
* Complainants and informants shall file complaints and reports in accordance with the principle
of seeking truth from facts and being responsible and shall be liable for the authenticity of the
reported incidents. They shall actively cooperate with the relevant work of the acceptance and
investigation departments and provide as detailed and complete information and evidence as
possible to ensure the smooth progress of the investigation.* Real-name complaints and reports are encouraged and the content of complaints and reports
must be objective and true. It is strictly prohibited to falsely accuse others or intentionally disrupt
the normal development of work and business in the name of complaints and reports. For real-
name informants valid contact information shall be provided; for anonymous informants who
have demands for reward they shall provide information that can identify their identity and valid
contact information.* We encourage complaints and reports to be submitted under real names. The content of such
complaints and reports must be objective and truthful; false accusations against others are strictly
prohibited as is the intentional disruption of normal work and business operations under the
pretext of filing a complaint or report. Real-name reports must include valid contact information;
anonymous reporters who request a reward must provide information that can verify their
identity and valid contact information.
2.3.1.2. Anti-Corruption Measures
Collaborative OPPEIN has established joint prevention mechanisms with the Baiyun
Mechanisms with Law District Public Security Bureau and Baiyun District People's Procuratorate.Enforcement
Internal Cross- The Audit Department and Supervision Department operate independently
Departmental from all business units subsidiaries and marketing systems and work
Supervision closely to monitor corporate misconduct implement preventive measures.Regular Reporting The Supervision Department receives whistleblowing reports conducts
thorough investigations into corruption cases and regularly discloses
findings.Transparent OPPEIN The company ensures accessible reporting channels for all employees
Platform suppliers and dealers while continuously expanding internal and external
oversight mechanisms.Employee Integrity All employees are required to sign the Integrity and Self-Discipline
Pledges Commitment Letter as an appendix to their employment contracts.Anti-Corruption "Integrity Culture" awareness campaigns are conducted across production
Training bases business units and functional departments to promote ethical
corporate culture.
40OPPEIN Home Group Inc.
International Anti-Corruption Day National Day and Mid-Autumn Festival Anti-
Promotion Corruption Promotion
2.3.1.3. Anti-Corruption Among Partners
We vigorously promote the Group's "Integrity Culture" in the pan-OPPEIN field and continuously
strengthen the business ethics supervision of partners. In accordance with the OPPEIN Home Group
Supply Chain Management System we have improved the integrity evaluation and management system
for upstream and downstream suppliers and distributors and improved the a reward and protection
mechanism for complaint and reporting. At the same time we have increased the frequency of visits to
suppliers distributors and other business partners continuously publicized the Group's anti-corruption
policies and procedures and in-depth explored and collected clues about violations and disciplinary
actions such as corruption involving key employees of the Group and business partners and
comprehensively and timely investigated and punished personnel involved in corruption.During the reporting period the Group's anti-corruption inspections covered 18 cities in 7 provinces
with a total of 160 inspections carried out; among them 72 inspections were conducted on suppliers and
88 inspections on distributors comprehensively strengthening the integrity and compliance management
of business partners.
41OPPEIN Home Group Inc.
Case: Uniting Forces to Combat Corruption and Build a Clean Business Environment
In October 2025 the Group participated in the 5th Supervision Audit and Anti-Corruption Forum co-
hosted by Southwest University of Political Science and Law and theAnti-CorruptionAlliance.A total
of 170 experts and practitioners from universities enterprises and legal and audit supervision fields
gathered together. At the forum the Director of the Group's Audit Department delivered a speech
sharing the latest industry trends and compliance management trends clarifying the strategic
positioning and development trends of anti-corruption work and also providing practical and operable
risk prevention and control solutions for enterprises through actual cases.
2.3.2. Anti-Unfair Competition andAnti-Monopoly
Our Group actively creates a fair and impartial operating environment strictly abiding by relevant laws
and regulations such as the "Anti-Unfair Competition Law of the People's Republic of China" the "Anti-
Monopoly Law of the People's Republic of China" the "Anti-Money Laundering Law of the People's
Republic of China" and the "Several Provisions on Prohibiting Acts of Infringing Trade Secrets". We
have formulated the "OPPEIN Home Group Trade Secret Management Regulations" to prohibit
employees from obtaining trade secrets through improper means that violate the principle of good faith
or business ethics. We have also formulated the "OPPEIN Home Group Dealer Cross-Scope Operation
Management Regulations" to clarify the handling standards and penalties for dealers' cross-region cross-
category cross-channel operations malicious interference vicious competition malicious slander and
other behaviors. In addition we have formulated the "OPPEIN Home Group Brand Infringement and
Counterfeiting Handling Management Specifications" to crack down on various unfair competition
behaviors such as counterfeiting and imitating our Group's products; and formulated the "Ten
42OPPEIN Home Group Inc.
Prohibitions for Personnel of the Supply Chain Management Center of OPPEIN Home Group in
Interactions with Suppliers" to strictly prohibit improper interest transfer between OPPEIN personnel
and suppliers or dealers. The Group focuses on creating a reassuring consumption environment
protecting the legitimate rights and interests of consumers and partners and maintaining the fair
competition order of the market.In terms of anti-monopoly and fair competition risk control the Group first identifies compliance risk
points accurately by sorting out and optimizing local systems and combining with business practices.Then it conducts internal due diligence on various business lines to standardize the use of documents
and avoid potential monopoly risks. At the same time the Group smooths the complaint channel
encourages employees and related parties to report unfair treatment irregular disposal and illegal acts
and jointly maintains a "fair and open" competitive order. In addition through centralized cleaning of
online infringement and standardization of offline store operations the Group has effectively defended
its brand image and market order.During the reporting period our Group had no legal lawsuits related to anti-unfair competition and anti-
monopoly.
2.3.3. Tax Transparency
We firmly oppose any form of tax corruption always fulfill our tax obligations with an attitude of
integrity transparency and cooperation and are committed to creating maximum economic contribution
for the locations where we operate continuously supporting the high-quality development of local
economies. We strictly comply with the tax-related laws and regulations of each operation location
formulate the "OPPEIN Home Group Tax Management System" establish a sound tax management
system and adopt effective tax risk assessment and assessment mechanisms to early warn control and
respond to tax risks in advance. At the same time we standardize the accounting declaration evaluation
and other behaviors of tax-related businesses requiring each legal person company to timely declare all
tax returns to the local competent tax authority and pay taxes in accordance with regulations. In addition
we consolidate the foundation of tax management by spot-checking the tax risk assessment reports of
each legal person unit and carrying out daily training actively avoid and prevent tax risks and improve
the level of tax management.
43OPPEIN Home Group Inc.
During the reporting period our Group complied with the requirements of national tax accounting and
other laws and regulations obtained the tax payment compliance certificate issued by the competent tax
authority and the total tax payment was 1.678 billion RMB.
2.3.4. Reporting and Complaint Management
We welcome reports from internal staff suppliers distributors and partners regarding misconduct
irregularities fraud and corruption. Formulated under the OPPEIN Home Group Complaint and
Reporting Management Regulations a standardized reporting mechanism covers the entire industrial
ecosystem. The Supervision Department Marketing Supervision Customer Service and Supply Chain
Inspection teams jointly oversee complaint handling protecting whistleblower rights and corporate
interests. During the period the Group received 126 report clues all fully verified and closed achieving
a 100% disposal rate.Complaint and reporting channels
* Chairman's Whistle-blowing Email: opceo@OPPEIN.com
* Supervision Department Whistle-blowing Email: opjcb@OPPEIN.com
* Supervision Department Whistle-blowing Hotline: 020-36733955
* Supervision Department WeChat Reporting Channel: 13538731145
* WeChat Complaints and Reporting Platform: "Integrity OPPEIN" official account
* Address for receiving visits and letters: Supervision Department of OPPEIN Group (Room 506
5th Floor) No. 366 Guanghua Third Road Baiyun District Guangzhou City and Supervision
Department of Qingyuan Base Building G 3rd Floor Area A.
2.3.4.1. Handling of Complaints and Reports
44OPPEIN Home Group Inc.
The Group requires the receiving department to promptly dispose of the received complaint and report
information. For the filed complaint and report items special personnel are immediately assigned to
conduct investigation and handling. In daily supervision work we adhere to the principle of professional
orientation and establish a communication mechanism based on professional division of labor. For
violations and disciplinary violations within the scope of responsibilities of professional supervision
departments and full-time supervision personnel which also fall within the scope of the Group's public
supervision department we handle them in accordance with the principle of "whoever discovers
handles". For the complained objects verified to have acts such as fraud corruption and unfair
competition we strictly implement the principle of "four irregardless" (regardless of position seniority
contribution and relationship) handle them in accordance with system specifications and feed back the
investigation results to the reporters.Principles for Handling Complaints and Reports
* Confidentiality Principle
* Recusal Principle
* Integrity and Self-Discipline Principle
* Principle of Investigating Every Complaint and Punishing Every Violation
* Protection and Reward Principle
2.3.4.2. Measures for the Protection of Whistle-blowers
We continuously improve the confidentiality mechanism for complaints and reports resolutely protect
the legitimate rights and interests of whistle-blowers clarify the confidentiality obligations of acceptance
personnel investigation personnel and relevant insiders and prohibit disclosing reporting information to
respondents their affiliated units and interested parties. After receiving complaint and report information
regulatory authorities at all levels shall strictly file cases for handling according to business categories or
transfer them to the corresponding business departments for handling and carry out work in accordance
with professional ethics and the Group’s confidentiality system.We strictly prohibit retaliation against whistle-blowers. If any violation occurs the Supervision
Department together with the departments responsible for handling complaints and reports will jointly
conduct a special investigation into retaliation in accordance with the "Integrity Management
Regulations" and the "Reward and Punishment Management Regulations". Once verified we will
45OPPEIN Home Group Inc.
propose to the Group to impose severe penalties on the relevant personnel who carried out the retaliation.If the retaliatory behavior involves illegal or criminal acts it will be transferred to the judicial authorities
for handling; if the complainant or whistleblower suffers any form of or degree of retaliation they should
feedback to the Supervision Department and the case acceptance department in a timely manner.Complaint and Reporting Guarantee Mechanism
* Guarantee for complaints and reports from OPPEIN employees: position adjustment and
preferential welfare policies.* Guarantee for complaints and reports from suppliers: immunity cooperation guarantee and
cooperation upgrade guarantee.* Guarantee for complaints and reports from dealers: immunity agency right guarantee dealer
economic and interest guarantee resource support and opportunity support.
2.3.5. Business Ethics Training
"Integrity Culture" is an important part of OPPEIN's corporate culture. Taking the "OPPEIN Home
Group Integrity Management Regulations" as the code of conduct the Group has established and
improved a sound system and supervision mechanism investigated and penalized irregularities and
disciplinary violations promoted and publicized the concept of integrity-based business created a culture
that promotes integrity built a work order of upholding integrity combating corruption and following
the right path and consolidated the ideological defense line for cadres and employees to resist corruption
and degeneration.The Group has carried out multiple integrity culture promotion activities in various production bases
business divisions and functional departments. Personnel in key positions at all levels shall participate in
at least two centralized and recorded "integrity culture" training sessions every year and the relevant
training records shall be included in the employees' annual training assessment. By building a
commercial ethics training system combining multiple forms such as "on-site training + online courses
+ company internal journals + official account tweets" the Group has incorporated content such as anti-
corruption fair competition and responsible marketing into training documents guiding all employees
to establish the professional awareness of working with integrity and starting a business with integrity
and preventing serious violations and disciplinary violations. During the reporting period the Group
46OPPEIN Home Group Inc.
carried out a total of 67 Integrity Culture training sessions covering 17369 person-times with a training
coverage rate of 100%.Training Objects Training Focus
Take "Integrity Culture" education as an important part of induction training.Newly Recruited
The Group and the audit & supervision departments of each base shall promptly
Employees
provide relevant training and promotion to new employees.Launch special lectures on "Integrity Culture" for management cadres. Cadres
Management
are required to attend no less than two training sessions each year and their
Cadres
training records shall be incorporated into the annual training assessment.Conduct "Integrity Culture" training via supplier conferences and continuously
Suppliers disseminate the Group’s core values of Fairness Openness Cooperation and
Freedom.Theme Training: "Uphold Righteousness Achieve a Win-Win Future"
"Integrity Culture" promoting scene: "Integrity Culture" promoting scene: Wuxi
Chengdu Base Base
47OPPEIN Home Group Inc.
"Integrity Culture" promoting scene: "Integrity Culture" promoting scene:
Tianjin Base Wuhan Base
2.4. Responsible Marketing
To ensure the compliance of all marketing activities in accordance with the "Advertising Law of the
People's Republic of China" and other relevant laws and regulations and in combination with the
Company’s actual conditions the Group has formulated internal management systems including the
"OPPEIN Home Group Ten Prohibitions and Supervision Management Regulations for Marketing
Personnel" the "OPPEIN Home Group Dealer Terminal Operation Management Regulations" the
"OPPEIN Overseas Retail Dealer Management Measures" and the "OPPEIN Home Group Advertising
Compliance Guidelines".These regulations standardize the marketing activities conducted by the Group and its subsidiaries within
the administrative region of China (excluding Hong Kong Macao and Taiwan regions) continuously
raise the compliance awareness of marketing staff and strengthen targeted marketing management.While pursuing commercial interests the Group fully takes into account the long-term interests of
consumers society and the environment and ensures that all marketing activities are transparent
integrity-based and socially beneficial.
48OPPEIN Home Group Inc.
Responsible Marketing
Where marketing content involves life and health it shall comply with
Compliant Marketing corresponding national standards; where it involves the rights of others
prior written consent shall be obtained from the right holder.Advertising and promotion shall be conducted truthfully and lawfully. It
Ethical Advertising shall not contain false or misleading content nor deceive or mislead
consumers.Any statement regarding the performance function origin usage quality
composition price manufacturer validity period or promises of products
Transparent Marketing
or the content provider form quality price and promises of services shall
be accurate clear and unambiguous.Promote environmentally friendly products to reduce resource waste and
Green Marketing pollution; adopt sustainable production and packaging methods to lower the
carbon footprint of products.Dealers of the Group shall strictly conduct outdoor advertising placement in accordance with
standardized procedures and management requirements stipulated in the "OPPEINHome Group Outdoor
Advertising Placement Management Regulations" and other relevant advertising specifications.The Legal Department timely reviews potential risks in advertising business cooperation and verifies
the compliance and legality of advertising materials. The Customer Service & Marketing Supervision
Center together with the Audit Department and Supervision Department conducts unscheduled spot
checks on the release of advertisements. Violations will be penalized in accordance with the "OPPEIN
Home Group Reward and Punishment Management Regulations" and the "OPPEIN Home Group Dealer
Subsidy Inspection Management Regulations".
49OPPEIN Home Group Inc.
3. ENVIRONMENT
OPPEIN has embedded green development into all business aspects advancing Eco-friendly
Commitment enterprise construction and striving to build a green low-carbon and circular development
system. We formulated the "Environmental Protection Management Regulations" clarifying
environmental responsibilities of all management levels and advancing the environmental management
system. We also promote energy-saving and emission-reduction upgrades increase environmental
investment embed low-carbon concepts into the entire manufacturing process and steadily improve the
environmental performance.
3.1. Environmental Management
The Group complies with national and local environmental regulations implementing an environmental
management system based on the principles of "protection first prevention-oriented comprehensive
management public participation and liability for damage". The Group has established an environmental
management system built a comprehensive mechanism via risk management process-based approach
and PDCA cycle and continuously improves and verifies the system’s performance and effectiveness.
3.1.1. Management Policy and Objectives
We attach great importance to environmental pollution issues and embed environmental protection into
the Group’s sustainable development strategy. Combining operational status product features and service
attributes we have formulated an environmental policy to guide the efficient and orderly operation of
the environmental management system. We further strengthen pollutant emission control advance
resource recycling and reuse and fully underpin the achievement of green development goals.During the reporting period our environmental management targets were achieved at a 100% rate.Environmental Policy Environmental Management Objectives
Protect the environment and prevent pollution; ? 100% compliance rate for emissions of air
Conserve energy reduce emissions and promote clean pollutants noise and wastewater
production; ? 100% solid waste recycling rate
Comply with regulations and pursue continuous improvement. ? Zero fire incidents throughout the year
50OPPEIN Home Group Inc.
3.1.2. Environmental Management System
As the industry’s first holder of ISO 14001 Environmental Management System and Eco-Label product
certifications we take environmental protection as a core operational principle. With standardized
documents and rigorous processes we keep environmental management work regulated controllable and
consistently compliant.
3.1.2.1. Environmental Management Structure
Under the Group’s environmental and sustainable development strategy we have built a three-tier EHS
governance structure with clear accountability covering leading central and divisional management
bodies featuring well-defined roles and division of labor division. Following the principles of "dual
responsibility system" and "line managers are accountable for environmental performance" we assign
environmental management duties to coordinate overall EHS work. The framework spans manufacturing
marketing and public support systems embedding EHS risk management into daily production and
operations. Through ongoing environmental risk identification assessment and control we reduce risks
of injury fire explosion and pollution and cultivate a corporate culture focused on safety environmental
protection and health.Three-Tier Environmental Management Structure
Led by the Group's Executive President this is the highest decision-making
body for environmental affairs. It is responsible for approving the Group's
Leadership
EHS Committee environmental policy and medium- to long-term strategies; setting and
Structure
monitoring progress toward key environmental objectives; and assessing
significant environmental risks and opportunities.Responsible for daily operation and coordination of the environmental
management system its core duties cover formulating and revising
environmental management systems and procedural documents
Central EHS
Management Management coordinating the collection monitoring and analysis of Group-wide
Body Department
environmental data arranging internal audits and management reviews
while responding to external audits and driving the implementation of
environmental management requirements across all sites and departments.
51OPPEIN Home Group Inc.
Three-Tier Environmental Management Structure
Each site appoints an Environmental Management Officer to ensure full
EHS
Management implementation of environmental requirements across production R&D
Implementing Departments at
supply chain and office operations. Relevant departments undertake daily
Units Each Site and
Functional work including environmental factor identification operational control
Departments
emergency response and data reporting.
3.1.2.2. Environmental Policy DevelopmentGuided by the “OPPEIN Group Environmental Management Manual" we formulated supportingprocedural documents and work instructions including the “Environmental Protection ManagementRegulations” the “Safety Environmental Protection and Occupational Health and Safety (EHS)Management Guidelines” the “Environmental Factor Identification and Control DeterminationProcedure” and the “Environmental Monitoring and Measurement Control Procedure.”
During the reporting period we optimized and revised the "Environmental Management Manual"
updated environmental management organization and scope supplemented climate change impact
content built a full green industrial chain advanced standardized environmental management system
development and comprehensively strengthened environmental management capacity.
3.1.2.3. Comprehensive System Certification
We strive for excellence and several of our major production units have obtained environmental
management system certification in accordance with the GB/T 24001-2016/ISO 14001:2015 standard
demonstrating the Group's unified high-standard management across all operations.As of the end of the reporting period the Group's Guangzhou headquarters Qingyuan Base Tianjin Base
Wuxi Base and Chengdu Base have all passed environmental management system certification.
52OPPEIN Home Group Inc.
Group Environmental Management System Certification
Guangzhou Wuxi Base Chengdu Base Tianjin Base
Headquarters and
Qingyuan Base
The Group's EHS Management Department enforces the "Compliance Obligations Management
Procedure" to proactively identify acquire and update applicable laws regulations and site requirements
including the "Pollutant Discharge Permit" and performs regular compliance assessments. We govern
the full process of design production and service under the "Operational Control Procedure" and
supporting protocols covering wastewater exhaust gas solid waste noise and chemical management.
3.1.2.4. Performance Evaluation Audits and Continuous Improvement
We ensure the effectiveness of the environmental management system and drive continuous improvement
through a multi-tiered audit review and oversight mechanism.? Monitoring Measurement and Analysis
In accordance with the "Environmental Monitoring and Measurement Control Procedure" we regularly
monitor air emissions wastewater noise energy consumption and waste disposal indicators. We file the
"Environmental Operation Checklist" the "Statistical Table on the Achievement of Environmental
Objectives and Management Plans" and periodic evaluation results. We adopt energy and EHS digital
platforms to boost data collection and analysis efficiency supporting management decision-making.? Internal Audits
In accordance with internal regulations including the "OPPEIN Group Internal Audit Control System"
we formulate a dedicated "Audit Implementation Plan."We carry out annual environmental management
system internal audits covering all system clauses and departments verifying compliance with GB/T
24001-2016 and the Group’s environmental management arrangements as well as proper
53OPPEIN Home Group Inc.
implementation and maintenance. For audit nonconformities relevant departments shall formulate
corrective measures and complete follow-up verification.? Management Review
We conduct an annual review of the Group's environmental management system per the "OPPEINGroup
System Management Review System." Held after internal environmental audits or prior to third-party
audits the review ensures the system’s ongoing suitability adequacy and effectiveness. Management
review frequency is increased amid major external changes or requests from environmental authorities
and certification bodies.? External Verification and Communication
We actively accept third-party surveillance audits to sustain environmental management system
certification validity maintain standard compliance and secure expected operational outcomes.Meanwhile under the "Information Exchange Control Procedure" we communicate openly with
employees local communities authorities suppliers and customers on environmental performance and
respond to stakeholder concerns including climate change via surveys and forums.During the reporting period we followed sustainability reporting guidelines from the Shanghai Stock
Exchange and steadily optimized environmental disclosure content.? Daily Monitoring Correction and Prevention
We continuously monitor and rectify violations pollution incidents and inadequate daily EHS
implementation. Any acts breaching the "OPPEIN Group Environmental Protection Management
Regulations" or relevant laws and regulations that cause adverse consequences will be dealt with per the
"OPPEIN Group EHS (Safety Environmental Protection Occupational Health) Assessment and
Incentive Management Regulations" and the "OPPEIN Group Reward and Punishment Management
Regulations".The Group EHS Management Department and site EHS branches supervise environmental management
system implementation via routine inspections and special audits. Non-conformities potential risks and
stakeholder complaints are handled in compliance with the "OPPEIN Group Non-conformity and
Corrective Action Management Regulations". We conduct root cause analysis roll out corrective and
preventive measures verify their effectiveness and establish a closed-loop mechanism to prevent
recurrence.
54OPPEIN Home Group Inc.
3.1.3. Environmental Risk Management
We regard environmental risk management as a critical safeguard for achieving green and sustainable
development.We proactively identify scientifically assess and effectively control various environmental
risks in our production and business operations to minimize the occurrence of environmental pollution
incidents. We also ensure rapid and effective responses in emergencies to protect the ecological
environment and community safety.
3.1.3.1. Environmental Risk Identification and Assessment
We have set up a regular environmental risk identification and assessment mechanism to screen potential
environmental impacts and compliance risks. We fully identify risk substances and units in production
and operations focusing on flammable explosive and toxic hazardous chemicals including paints
solvents and adhesives natural gas and other energy media hazardous waste such as waste paint residue
waste activated carbon and oily wastewater as well as exhaust and wastewater treatment facilities. For
identified risk sources we evaluate the probability severity and scope of environmental impacts and
carry out preliminary risk classification to support targeted management including assessing the
atmospheric surface water and soil impacts of chemical leaks and emission non-compliance risks from
environmental facility malfunctions.We keep track of updates to national and local environmental laws regulations and policies regularly
assess operational compliance and identify potential compliance risks and improvement opportunities.
3.1.3.2. Environmental Incident Emergency Response Plan
Guided by the principles of "prevention first combining prevention with control rapid response and
effective containment" we have built a Group-wide environmental emergency management system
covering pre-incident preparedness on-site response and post-incident recovery. The system copes with
major environmental risks including heavy air pollution fires chemical leaks environmental facility
breakdowns and extreme weather to prevent and mitigate sudden environmental incidents as well as
secondary impacts safeguarding environmental safety and community stability.All production bases formulate severe air pollution response plans as required by local environmental
authorities and complete official review and filing. Once a severe air pollution warning is issued all
bases follow governmental emergency arrangements and production adjustment requirements cutting
55OPPEIN Home Group Inc.
emissions of VOCs nitrogen oxides particulate matter and sulfur dioxide to lower operational
environmental impacts.To handle fires chemical leaks environmental facility failures and avoid secondary pollution we have
improved the standardized emergency management system. Each production base develops the
"Emergency Response Plan for Sudden Environmental Incidents" in line with the "Environmental
Management Manual" and the "OPPEIN Group Fire Safety Management Regulations" and sets up an
emergency command mechanism with clear procedures responsibility allocation disposal measures and
information reporting routes. We conduct regular inspections and maintenance of emergency facilities
and materials to guarantee availability and performance. After drills or actual incidents we assess plan
effectiveness and revise plans timely in light of evaluation outcomes organizational adjustments and
regulatory updates steadily strengthening emergency disposal capacity and reducing environmental and
community impacts.During the reporting period we compiled the "OPPEIN Home Group Inc. Emergency Response Plan
for Extreme Weather Disasters" and carried out multiple targeted emergency drills to promote practical
implementation.Emergency Response Drill for Hazardous Chemical Leaks
56OPPEIN Home Group Inc.
Training on Responding to Extreme Weather Conditions
3.1.4. Practicing Environmental Protection Principles
We thoroughly implement strategies for green production and energy conservation embedding the
concept of green and energy-efficient practices across all aspects of our operations—from strategic
guidance and plan formulation to employee communication specialized training and public welfare
initiatives. In all Group operations we actively promote environmentally friendly office practices such
as paperless operations energy-efficient lighting and video conferencing through scientific planning and
strict management. We comprehensively advance energy conservation consumption reduction and
resource recycling to jointly build an environmentally friendly enterprise.
3.1.4.1. Environmental Management Training
To ensure effective environmental management system operation and boost employees’ environmental
awareness and operational skills OPPEIN has built a tiered EHS training system. We allocate personnel
financial resources and technical expertise for system operation and standardize training and
assessments to ensure all employees—especially key positions—understand and uphold our
environmental commitments.Under the “OPPEIN Group Safety Education and Training Management Regulations” environmental
management training is integrated into the company’s overall safety education system. We provide
resources for the environmental management system including investments in environmental facilities
energy-saving equipment upgrades and monitoring instruments which support the effective
implementation of training programs..
57OPPEIN Home Group Inc.
We conduct comprehensive training for all employees on environmental awareness regulations and
policies ensuring they grasp the core of our "protect the environment prevent pollution; conserve energy
reduce emissions and promote clean production" policy and their individual responsibilities. For key
positions with significant environmental impacts (e.g. environmental facility operators hazardous
chemical managers waste gas/wastewater treatment workers) we provide in-depth training on job-
specific procedures emergency response skills and legal requirements to ensure role competence.Case: Specialized Energy Management Training at the Wuxi Base
Wuxi Base has formulated a sophisticated energy conservation training and cultural mechanism under
the “Wuxi Base Energy Consumption Management Specifications.” All new and existing employees
receive training on energy-saving criteria including equipment power consumption compressed air
and central vacuum system operation norms to ensure full standard awareness. The base also holds
semi-annual energy-saving technical and best practice sharing sessions to facilitate experience
promotion and learning.
3.1.4.2. Energy Conservation and Environmental Protection Advocacy
We advocate all employees to embrace green concepts practice ecological protection resource recycling
and a frugal low-carbon lifestyle jointly undertaking environmental responsibilities. Responding to
national energy conservation goals we promote environmentally friendly office practices issue a water
and electricity conservation initiative and implement energy-saving measures. Employees are
encouraged to identify waste and propose improvements with dedicated staff tracking carbon reduction
progress. Irregular utility spot checks across departments ensure full compliance with conservation
requirements.Energy Conservation and Emission Reduction Initiative
? Use air conditioning scientifically and reduce operating hours
? Promote natural lighting to reduce electricity consumption from artificial lighting
? Use elevators judiciously to reduce usage frequency
? Strengthen equipment management to effectively reduce energy consumption
? Practice water conservation principles and develop water-saving habits
58OPPEIN Home Group Inc.
Case: Energy Management Assessment and Incentives at the Wuxi Base
Wuxi Base placed energy-saving reminders in production areas and launched a "Golden Ideas"
campaign to collect employees’ energy-saving proposals fostering a workplace culture of universal
conservation. It also set up an energy-saving reward and penalty mechanism. Outstanding workshops
teams and individuals are honored as energy-saving role models while acts including energy waste
irregular operations and unmet energy-saving targets will face fines and public reprimands as part of
standardized management enforcement
3.2. Addressing Climate Change
The Group recognizes the urgency of global climate change and prioritizes climate action integrating
climate-related risks and opportunities into its ESG framework while optimizing response measures andenvironmental disclosures. Formulated under the “OPPEIN Group Risk and Opportunity ManagementRegulations” our governance covers risk response avoidance mitigation and acceptance. Robust
management measures and internal controls strengthen overall risk resilience. We conduct systematic
climate impact and financial materiality assessments embed climate factors into governance and strategy
and advance low-carbon transition and climate resilience via quantified targets risk-opportunity
management and core indicator disclosure.
3.2.1. Governance
We have built a sound governance framework that embeds climate impacts risks and opportunities into
the existing sustainability governance system. The Board’s Strategy and Sustainability Committee acts
as the top oversight body for climate matters tasked with reviewing sustainability goals and material
issues managing related impacts and risks overseeing target formulation and examining sustainability
reports and disclosures. Operationally the EHS Management Department leads climate environmental
performance covering data collection carbon accounting and emission reduction delivery. The Internal
Affairs Department coordinates group-wide resource consumption data and oversees relevant emission
reduction projects.
59OPPEIN Home Group Inc.
During the reporting period we updated the Strategy and Sustainability Committee’s procedural rules
to clarify its duties and revised the “Environmental Management Manual” by adding climate change
impact provisions.
3.2.2. Strategy
To strengthen climate resilience and manage climate-related risks we adopt TCFD recommendations
and abide by the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4—
Preparation of Sustainability Reports (Revised January 2026)". Via policy research peer benchmarking
and expert consultation and in compliance with the Group’s "Risk and Opportunity Identification and
Evaluation Management Procedure" with the "Risk and Opportunity Identification and Analysis
Evaluation Form" we fully identify climate-related transition and physical risks as well as potential
opportunities affecting operations and incorporate them into the climate response strategy.We have bolstered climate risk governance and rolled out targeted measures. By optimizing the energy
structure and resource efficiency through company-wide energy conservation initiatives and renewable
energy adoption we improve climate risk management effectiveness and further embed climate risks
into the Group’s ESG and risk management systems.
3.2.2.1. Identification and Assessment of Climate-Related Risks and Opportunities
Transition Risks
Financial
Risk Type Risk Description Time Range Mitigation Measures
Materiality
Since China proposed its dual
carbon goals in 2020 national Closely follow local government and
and local authorities have rolled institutional requirements on pollutant
out green and low-carbon Mid-term discharge and environmental
Policy and
regulations to address climate and long- information disclosure to ensure full High
Legal Risks
change. This heightens term compliance with environmental
corporate compliance pressure regulations and mitigate compliance
with rising risks of relevant risks.litigation and claims.
60OPPEIN Home Group Inc.
Transition Risks
Financial
Risk Type Risk Description Time Range Mitigation Measures
Materiality
Industry "dual carbon"
Actively pursue energy conservation
requirements are becoming Mid-term
and emissions reduction initiatives and
increasingly clear and policy and long- High
increase the proportion of clean energy
pressure to reduce greenhouse term
used.gas emissions is intensifying.We will continue to implement energy
Globally supporting regulatory
conservation and emissions reduction
and adjustment mechanisms for Short-term
strategies closely monitor carbon
carbon emissions trading are mid-term
pricing mechanisms in the countries High
being introduced which may and long-
where our assets are located as well as
lead to increased operational term
globally and respond to challenges
and financial costs.proactively and flexibly.Environmental compliance Actively conduct training on relevant
risks arising from employees' laws and regulations in the regions
Mid-term
failure to understand local work where we operate assign dedicated
and long- Medium
procedures in overseas offices legal compliance personnel and
term
due to geographical or language strictly enforce relevant policy
barriers. requirements.Enhance the Group’s R&D capabilities
by recruiting and training
professionals introducing
Investment failures in R&D and
Mid-term technologies and learning from
upgrades for energy-saving and
and long- external parties. We will further High
environmental protection
term strengthen R&D on low-carbon and
technologies.energy-saving technologies and
engage in industry exchanges and
Technical
cooperation.Risks
Failure to promptly identify and
apply energy-saving and
We will continue to intensify research
environmental protection
Mid-term and innovation in low-carbon and
technologies resulting in the
and long- energy-saving technologies and High
Group's factories and products
term actively engage in industry exchanges
lagging behind peers in the
and cooperation.transition to low-carbon
operations.
61OPPEIN Home Group Inc.
Transition Risks
Financial
Risk Type Risk Description Time Range Mitigation Measures
Materiality
Resource recycling; Build long-term
stable sustainable partnerships with
Mid-term raw material suppliers; Continuously
Rising costs of raw materials
and long- promote the research development High
and energy.term and application of energy-saving
Market
technologies and increase the
Risks
proportion of clean energy used.Failure to effectively meet
Mid-term Actively develop Eco-friendly
consumer demand for green
and long- Commitment products to meet High
and environmentally friendly
term consumer needs.products
The Group its suppliers or Strengthen internal sustainability
distributors may have a management and proactively respond
negative impact on the climate to climate change; Regulate upstream
Short-term
or the environment during their and downstream supply chains to
Reputation mid-term
production and business follow sustainability principles and High
Risk and long-
operations resulting in damage ensure compliant green operations;
term
to the Group's reputation and a Improve information disclosure
decline in stakeholders' transparency via regular releases in
willingness to invest. annual and sustainability reports.Physical Risk
Time Financial
Risk Type Risk Description Mitigation Measures
Range Materiality
Extreme weather may
Extreme Short-term
damage factories Identify potential risks of property
Acute weather mid-term
office buildings and damage and purchase insurance for High
Risks events such and long-
equipment resulting necessary facilities and equipment.as typhoons term
in asset losses.
62OPPEIN Home Group Inc.
Physical Risk
Time Financial
Risk Type Risk Description Mitigation Measures
Range Materiality
heavy rains Develop emergency response
Extreme weather can
and floods mechanisms (e.g. "Extreme
cause equipment
Weather Disaster Emergency
damage prevent
Response Plan" and "Guidelines
employees from
for Outdoor Operations Under
working normally
Various Weather Conditions"); High
and disrupt
conduct extreme weather response
transportation
and protection training and
affecting the Group's
continuously optimize natural
normal operations and
disaster emergency response
production.mechanisms.Prolonged high
temperatures increase
Strengthen equipment inspections
the risk of operational
Short-term and maintenance and promptly
failures and accidents
mid-term identify and resolve various
in power facilities and Medium
and long- malfunctions;
equipment affecting
term Install cooling and temperature-
production efficiency
reduction systems.and creating safety
hazards.Install cooling facilities in work
and production areas and provide
High temperatures frontline staff with heatstroke
Persistent affect employees' prevention supplies. Guarantee
high health making it Short-term domestic and production water
Chronic temperatures impossible for them to mid-term supply roll out prevention
Medium
Risks and drought work outdoors for and long- measures and sound health
etc. extended periods term emergency protocols. Adopt
which impacts targeted cooling measures
operational efficiency. optimize production arrangements
and adjust working hours or
suspend operations as needed.Stockpile water for production and
Prolonged drought daily use and strengthen water
may lead to water Short-term recycling;
shortages affecting mid-term Avoid constructing factories in Medium to
the stability of and long- areas with high water supply risks high
production and term and continuously advance water-
operations. saving and environmental
protection upgrades.
63OPPEIN Home Group Inc.
Opportunities
Opportunity Time Financial
Opportunity Description Countermeasures
Type Range Materiality
Actively explore R&D and application
Research and development or of new technologies equipment and
use of more energy-efficient Mid-term processes to boost resource efficiency;
Resource
equipment and technologies; and long- leverage government supportive High
Efficiency
National and regional term policies introduce new technologies
supportive policy incentives. and invest in green projects with fiscal
support.Research development and Mid-term Strengthen R&D and investment in
Products and
application of green low- and long- green and environmentally friendly High
Services
carbon products. term products.Increased consumer demand for Increase the market share of Eco-
Mid-term
low-carbon products; friendly Commitment products;
Market and long- High
Development of emerging Proactively identify and participate in
term
markets. emerging markets.Use of renewable energy; Mid-term
Increase efforts to develop and utilize
Resilience Energy substitution and and long- High
renewable energy.diversification strategies. term
3.2.3. Impact Risk and Opportunity Management
We have established a comprehensive risk management system; for specific details please refer to the
"Governance— Risk and Compliance Controls" section.To manage climate-related impacts risks and opportunities we embed climate risk factors into the Risk
Management Committee’s framework per the "OPPEIN Group Risk and Opportunity Management
System." Using the "Procedure for Identifying Environmental Factors and Determining Controls" and
the "Risk and Opportunity Identification and Analysis Assessment Form" we identify and assess value-
chain-wide risks to guide operation R&D and business strategies supporting medium- and long-term
financial and strategic planning.All sites and divisions conduct climate risk identification. In line with internal assessment standards
risks are evaluated by occurrence probability and impact severity to grade risk levels with material risks
confirmed via internal review. We also perform a qualitative and quantitative evaluation of climate risks
and opportunities across business models value chains and financial and non-financial dimensions
covering compliance asset loss business continuity operational goals and reputation.
64OPPEIN Home Group Inc.
3.2.4. Metrics and Targets
We attach great importance to operational climate impacts taking greenhouse gas emissions and energy
consumption as core quantitative indicators for environmental performance and low-carbon transition.We have built and optimized data collection and accounting systems annually disclosing Scope 1 and
Scope 2 emissions emission intensity and key energy consumption data in the Sustainability Report.This transparently demonstrates carbon reduction and energy efficiency progress under stakeholder
oversight.We will keep track of the national "Dual Carbon" strategy industry benchmarks and internal emission
reduction potential to set pragmatic yet ambitious climate targets guiding the Group’s green and low-
carbon transition.
3.2.4.1. Greenhouse Gas Emissions
We actively respond to national "Dual Carbon" goals. Following the "Guidelines for the Verification of
Corporate Greenhouse Gas Emission Reports (Trial)" we conduct independent GHG inventories
optimize emissions management tap emission reduction potential roll out energy-saving and carbon-
cutting measures and lower corporate carbon footprint. We keep abreast of home furnishing carbon
accounting policies to accurately track operational emissions and extend GHG inventories to the supply
chain. Based on complete emission baselines we will formulate scientific carbon neutrality and emission
reduction roadmaps.During the reporting period the Group's total greenhouse gas emissions (Scope 1 and Scope 2) amounted
to approximately 153575.67 metric tons of carbon dioxide equivalent representing a year-on-year
reduction of approximately 11.82%; the greenhouse gas emission intensity for Scope 1 and Scope 2 was
8.91 metric tons per million RMB of revenue.
65OPPEIN Home Group Inc.
OPPEIN 2025 Greenhouse Gas Emissions Breakdown1 (Unit: tCO?e)
Direct greenhouse gas Indirect greenhouse gas Total Greenhouse Gas
Bases emissions emissions Emissions
(Scope 1) (Scope 2) (Scope 1 and Scope 2)
Guangzhou
282.0211150.0411572.97
Headquarters
Qingyuan Base 2727.83 53022.33 55750.16
Tianjin Base 2407.91 26178.55 28586.46
Wuxi Base 393.98 27722.21 28116.19
Chengdu Base 474.86 19105.70 19580.56
Wuhan Base 151.10 12282.74 12433.84
Total 6437.70 147137.97 153575.67
OPPEIN Greenhouse Gas Emissions from 2023 to 2025 (Unit: tCO?e)
202320242025
Direct Greenhouse Gas Emissions (Scope 1) 10368.67 7316.52 6437.70
Indirect greenhouse gas emissions (Scope 2) 192847.51 166838.83 147137.97
Total greenhouse gas emissions (Scope 1 and
203216.18174155.35153575.67
Scope 2)
Greenhouse gas emissions intensity (Scope 1
8.928.958.91
and Scope 2) (tCO2e/million in revenue)
3.2.4.2. Carbon Accounting
To solidify carbon emission data foundation and ensure accurate compliant disclosures the Group
commissioned a third party during the reporting period to audit greenhouse gas emissions across
corporate legal entities and the Tianjin Base in line with industrial enterprises’ greenhouse gas
1 Based on the nature of operations at the Group and its various production sites sources of direct greenhouse gas
emissions (Scope 1) include emissions from the combustion of natural gas gasoline and diesel in fixed and mobile
equipment; sources of indirect greenhouse gas emissions (Scope 2) include carbon dioxide emissions resulting from
the purchase of electricity; the Group's greenhouse gas emissions data is compiled from the Group headquarters and
its various production sites.
66OPPEIN Home Group Inc.
accounting rules. A 2024 Greenhouse Gas Emissions Report was issued. Defining clear accounting
boundaries and methodologies the report provides baseline data and a management reference for
identifying emission reduction priorities and formulating future carbon targets.
3.3. Resource Utilization and Management
The Group embeds sustainable development into full production and operation processes and
strengthens resource utilization management. It strictly abides by the "Energy Conservation Law of the
People's Republic of China" "Water Law of the People's Republic of China" and "Circular Economy
Promotion Law of the People's Republic of China" implements standardized resource management plans
and strives to improve resource efficiency.
3.3.1. Water Resource Utilization and Management
Water resources underpin ecological balance and operational stability. Adhering to the principle of"prioritizing water conservation and efficient utilization" the Group complies with the “Water Law ofthe People's Republic of China.” It boosts water use efficiency and reduces its impact on water bodies
via improved management systems water conservation plans water-saving technologies and recycled
water usage. We also follow national and local rules on water intake reuse and wastewater discharge.No major water intake or discharge incidents occurred during the reporting period.
3.3.1.1. Water Resource Utilization
Water resource management is embedded into the Group’s overall environmental management system.The EHSManagement Department coordinates overall governance while EHS teams at each production
base undertake on-site implementation. The Internal Affairs Department assists in water consumption
data collection and water-saving project advancement ensuring clear division and effective execution of
responsibilities. Guided by the "OPPEIN Home Group Environmental Protection Management
Regulations" all operating units are required to abide by water intake permits cap total water use and
ensure standard discharge with water-saving performance included in routine supervision and
assessment.The Group tracks and aggregates group-wide water intake consumption and discharge data and
67OPPEIN Home Group Inc.
discloses water use intensity transparently. Water is mainly supplied by municipal pipelines covering
domestic use indirect cooling for manufacturing equipment and minor production line consumption.During the reporting period total annual water withdrawal reached 1694724.25 tons down 7.07% year
on year with water consumption intensity at 98.35 tons per million RMB of revenue.
3.3.1.2. Water Conservation
To strengthen water resource management and mitigate water-related pressures and risks the Group has
launched water-saving upgrades and deployed wastewater treatment facilities with substantial investment.It complies strictly with "General Rules for the Provision and Management of Water Meters in Water-
Using Units" (GB 24789-2009) and "Guidelines for the Evaluation of Water-Conserving Enterprises"
(GB/T 7119-2018). Internal water conservation assessments have been carried out alongside optimized
management systems dedicated management teams detailed metering layouts and water consumption
accounts. Secondary water meters have been installed in buildings and workshops for categorized
consumption monitoring. Recycled water is widely adopted in processes including spray painting and
countertop cutting; the countertop factory recycles wastewater cutting annual tap water use by 720000
tons.During the reporting period water-saving fittings were renewed achieving a water-saving rate of over
10%. Retrofits such as faucet aerators and toilet cistern improvements reduced daily water use. The
Group also scaled investment in water-saving technologies alternative water source projects and
promoted broader reuse of reclaimed water and rainwater harvesting across production processes.
3.3.2. Energy Consumption and ManagementWe strictly abide by regulations in all operating regions including the “Energy Conservation Law of thePeople's Republic of China.” Upholding sustainable development through energy conservation
consumption reduction measures and green production the Group has established a sound energy
management system expanded renewable energy deployment and advanced energy-saving technological
upgrades. These efforts boost energy efficiency optimize the energy mix and foster a green low-carbon
and cost-effective operation model.
68OPPEIN Home Group Inc.
By the end of the reporting period Qingyuan OPPEIN Integrated Home Co. Ltd. the Group’s core
production base has obtained energy management system certification under GB/T 23331-2020/ISO
50001:2018 and EWC-R-En-FM:2019.
Qingyuan OPPEIN Integrated Home Co. Ltd. Energy Management System Certification
3.3.2.1. Energy Management Policy and System
We have built a full-cycle energy management system covering strategy objectives implementation and
evaluation to realize systematic energy consumption control and continuous improvement. Guided by
the environmental policy of "energy conservation emission reduction and clean production" the Group
follows energy management principles of goal orientation refined governance integrated technology
and management and full staff engagement.During the reporting period we advanced energy management system upgrades across all production
bases. The Wuxi base issued the “Wuxi Base Energy Consumption Management Specifications”
covering all departments and energy types with clear governance principles organizational frameworks
quantitative targets and implementation measures to build a closed-loop company-wide energy
conservation management system.
3.3.2.2. Energy Consumption and Performance
The Group’s energy consumption is dominated by purchased electricity with natural gas gasoline and
diesel as supplements. We are advancing an intelligent energy monitoring system and complying with
GB 17167-2006 to refine energy measurement and implement tiered management ensuring compliant
69OPPEIN Home Group Inc.
and traceable energy use. Regular internal and external energy audits help assess energy performance
address existing gaps and steadily improve energy efficiency. A routine energy data monitoring and
analysis mechanism is in place with monthly statistics verification and reporting of electricity water
and fuel consumption across departments and workshops. Smart meters installed on key equipment feed
real-time data into a unified platform enabling real-time monitoring dynamic analysis and anomaly
alerts to support targeted energy-saving optimization. Once abnormal or rising energy consumption is
identified base and department leaders initiate cause analysis draw up targeted energy-saving plans and
submit them for approval and execution. The Group further promotes digitized energy management
accelerates the deployment of site-level energy management systems and raises renewable energy
penetration to cut resource consumption and environmental impact at the source.During the reporting period the Group's fixed equipment and owned mobile equipment consumed
2681496 cubic meters of natural gas 79965.68 liters of gasoline 176550.30 liters of diesel and
277304.87 megawatt-hours of purchased electricity. The total energy consumption converted to
standard coal equivalent was 37869.87 tons2 of standard coal equivalent representing a 10.88%
decrease from the previous year.Smart Electricity Online Energy Efficiency
Energy Information Data Platform System
Monitoring and Management System
3.3.2.3. Energy Conservation and Consumption Reduction Measures
The Group strictly follows the production principle of energy conservation and consumption reduction.Each production site formulates annual energy-saving targets and plans tailored to operational realities.During the reporting period the headquarters and all bases improved overall energy efficiency via
management optimization and technological upgrades while steadily advancing energy-saving
renovation projects.
2 Energy consumption in terms of standard coal equivalent is calculated in accordance with the "General Rules for
the Calculation of Comprehensive Energy Consumption" (GB/T 2589-2020) issued by the State Administration for
Market Regulation and the Standardization Administration of China.
70OPPEIN Home Group Inc.
? Optimization of Management Measures
In management optimization we lower peak production loads and boost energy efficiency by releasing
production scheduling guidelines standardizing capacity models and adopting peak-shift production as
well as scheduled start-stop protocols for large equipment.We enforce energy use regulations to eliminate
waste requiring on-demand operation of compressed air lighting and cooling facilities for precise energy
control.For key energy-consuming systems targeted management rules are continuously refined. Detailed
“Compressed Air Usage Standards” define pressure specifications ban non-production usage and air
leakage and clarify responsibilities across the Equipment Process and workshop teams to achieve
refined whole-process management. The “Central Vacuum System Usage Guidelines” adopt time-phased
operation standardized load regulation and pipeline management with dedicated meters deployed to
monitor and analyze energy consumption.? Energy-Saving Renovations and Upgrades
Selected Energy-Saving Technical Retrofit Projects Implemented During the Reporting Period
Project Name Project Upgrade and Renovation Details
Comprehensively reviewed the lighting system continued to advance energy-
Lighting
saving lighting retrofits removed redundant light tubes promoted LED lighting
Energy-Saving
replaced solar streetlights and expanded the application of motion-sensor-
Retrofit
controlled lighting.Replacement of Phase out inefficient motors according to schedule and replace them with high-
Outdated efficiency or permanent magnet motors; retrofit equipment such as fans and
Equipment pumps with variable frequency drives.Install smart meters on major electrical equipment in each workshop to collect
real-time power consumption data which is then aggregated into the facility's
Smart power monitoring platform to enable real-time monitoring of energy
Monitoring consumption; develop a power consumption visualization dashboard; and
implement smart monitoring and early warning systems for pressure differentials
in dust collection system filter bags.
71OPPEIN Home Group Inc.
Case: Energy Storage Facilities at Two Major Bases
We are advancing energy storage projects at key sites. Through peak shaving and valley filling we
optimize power operation ease peak grid load cut reliance on fossil-fuel peak power and lift overall
energy efficiency.The Wuxi base 6MW/18MWh energy storage system adopts intelligent control: prioritizing
photovoltaic power then stored energy discharge and grid power as supplement to maximize clean
energy use.During the reporting period Qingyuan base’s 8.82MW/17.5MWh user-side energy storage project
was put into operation and named a Guangdong Provincial high-quality user-side energy storage
demonstration project. Customized for furniture manufacturing power use it delivers an integrated
“energy storage + smart energy management” solution. With cluster-independent control full liquid
cooling and multi-layer safety design it balances efficiency and safety. Powered by digital twin and
intelligent forecasting it optimizes power consumption curves and supports demand-side management
and peak regulation. From March to December 2025 the project recorded 8.46 million kWh charging
and 7.29 million kWh discharging lowering electricity costs and boosting energy efficiency. It offers
a replicable path for the industry to realize cost reduction efficiency gains and low-carbon production.Supported by Guangdong’s cold storage tariff policies the project further enhances economic value
and demonstration influence setting a benchmark for user-side energy storage.
3.3.2.4. Renewable Energy Utilization
We align with national low-carbon goals and promote green production. The Group keeps investing in
72OPPEIN Home Group Inc.
renewable energy projects across Guangzhou Qingyuan Tianjin and Wuxi sites adopting a “self-usefirst surplus grid feed-in” model. This raises clean energy penetration accelerates energy structure
upgrading mitigates climate risks cuts power-related GHG emissions and supports national carbon
peaking and neutrality targets.During the reporting period new photovoltaic projects were launched at Wuhan and Chengdu adding
19.23 MW of installed capacity. By period-end cumulative PV capacity hit 63.357 MW with total
generation at 49644.28 MWh. Clean energy usage ratio reached 15.18% up 33.31% year-on-year. This
saves 15000 tons of standard coal yearly and reduces CO? emissions by around 32400 tons3.Renewable Energy Projects Commissioned During the Reporting Period
Annual
Type of Installed
Project Electricity
Renewable Capacity Project Overview
Location Generation
Energy (MW)
(MWh)
The project sits atop the headquarters’ northern
Guangzhou Solar
0.80 900.50 office and dormitory rooftops covering about
Headquarters Power
12000 m2 and was grid-connected inAugust 2023.
The project spans the rooftops of factory buildings
parking canopies and residential dormitories with
Qingyuan Solar
20.397 18073.83 an area of around 155000 m2. Phase I achieved
Base Power
grid-connected in late December 2021 followed by
Phase II in June 2023.The project covers the rooftops of Buildings A–H
and commenced operation in May 2022; the
Solar
Tianjin Base 9.13 10903.62 factory-area project was grid-connected in
Power
December 2023 and the residential-area project
was grid-connected in July 2024.
3 Annual carbon dioxide emission reductions from photovoltaic projects are calculated in reference to the "2024
Emission Reduction Project Baseline Emission Factors for China's Regional Power Grids" issued by the Ministry of
Ecology and Environment.
73OPPEIN Home Group Inc.
Renewable Energy Projects Commissioned During the Reporting Period
Annual
Type of Installed
Project Electricity
Renewable Capacity Project Overview
Location Generation
Energy (MW)
(MWh)
The project is primarily distributed across the
rooftops of Buildings A-H at the Wuxi Base
Solar covering approximately 82000 m2 and was
Wuxi Base 13.8 15017.29
Power connected to the grid in August 2018; Building G
covers approximately 17000 m2 and was
connected to the grid in January 2024.The project is primarily distributed across the
Chengdu Solar rooftops of Buildings at the Chengdu Base with a
124749.04
Base Power total area of 120000 m2. The project was connected
to the grid in May 2025.Solar The project was connected to the grid in December
Wuhan Base 7.23 -
Power 2025 with an installed capacity of 7.23 MW.Total 63357 49644.28 -
Emissions Reduction of the PV Project During the Reporting Period
Annual Standard Coal Savings Annual CO? Equivalent Emissions
Location of PV Projects
(10000 tons) Reductions (10000 tons CO?)
Guangzhou Headquarters 0.03 0.06
Qingyuan Base 0.55 1.15
Tianjin Base 0.33 0.86
Wuxi Base 0.45 0.95
Chengdu Base 0.14 0.22
Total 1.50 3.24
74OPPEIN Home Group Inc.
Case: Wuhan Base Photovoltaic Power Generation Project
Wuhan Base integrates smart home manufacturing with clean energy. Its 7.23MW zero-carbon project
optimizes production and resource efficiency via high-precision smart manufacturing and deploys
distributed PV to reduce fossil fuel dependence. Connected to an integrated energy smart platform it
uses IoT and big data for full-cycle energy monitoring and intelligent scheduling with AI tools
boosting energy efficiency. The 7.23 MW PV system achieved full grid connection generating 7.58
million kWh annually. It saves 2480 tons of standard coal cuts 7560 tons of CO? emissions yearly
equivalent to the carbon sequestration of 420000 trees.Case: Chengdu Smart Manufacturing Base 12 MW Zero-Carbon Energy-Saving Project
Chengdu Base pioneers smart home manufacturing integrated with green energy. Its 12MW zero-
carbon project adopts advanced smart manufacturing for precise production control and efficient
resource use while embedding green energy to cut fossil fuel reliance at the source. The project
connects to a a smart cloud platform covering generation grid load storage and charging. With IoT
and big data it realizes real-time monitoring and intelligent regulation of energy production
transmission storage and consumption. AI-driven demand forecasting and allocation optimization
improve energy efficiency. By the end of the period the 12MWPV project was grid-connected which
generates 10.07 million kWh annually saving 3300 tons of standard coal and cutting over 10049 tons
of CO? yearly.
75OPPEIN Home Group Inc.
3.4. Pollutant Control
The Group strictly complies with relevant national environmental laws and regulations in project
locations standardizes pollutant disposal cooperates with government authorities and stakeholders to
conduct environmental management safeguard ecological security improve environmental quality and
standardize pollution discharge practices.
3.4.1. Air Pollutants
The primary air pollutants emitted during our production and operations include dust (particulate matter)
organic exhaust gases (VOCs toluene xylene styrene etc.) natural gas combustion exhaust and
kitchen fumes. Through environmental protection facilities and equipment such as central dust collectors
baghouse dust collectors wet scrubbers spray towers RTOs COs activated carbon adsorption units
dust and odor removal units and kitchen fume purification units we strictly control the compliant
emissions of atmospheric pollutants such as nitrogen oxides sulfur oxides and particulate matter.Case: Centralized Dust Collection System
To tackle substantial dust from wood processing we have replaced traditional inefficient single-point
dust collection with a full upgrade to a central dust collection system. The system installs exhaust
hoods or embedded dust ducts beside or above dust-producing equipment such as electric saws drill
presses and milling machines. Using negative pressure it concentrates dust into cartridge-type or bag-
type central collectors for high-efficiency filtration. Part of the purified clean air is recirculated to
workshops markedly lowering fugitive dust emissions and improving thermal energy utilization.
3.4.2. Wastewater Management
In accordance with the "Environmental Protection Management Regulations" and the requirements of
local environmental protection authorities the Group has comprehensively strengthened the control of
domestic and industrial wastewater discharge. We actively apply new wastewater treatment equipment
and online water quality monitoring technologies to ensure that the quality of wastewater discharged
from the factory premises meets the requirements of national and local discharge standards including
the "Comprehensive Discharge Standard for Wastewater" (GB 8978-1996) and the "Standards for
Pollutant Discharge from Urban Sewage Treatment Plants" (GB 18918-2002) thereby minimizing the
76OPPEIN Home Group Inc.
impact on receiving water bodies.During the reporting period the Group was not subject to any penalties related to non-compliant
wastewater discharge.
3.4.2.1. Wastewater Discharge and Treatment
We follow classified wastewater treatment rules and operate a full wastewater management system.Residential domestic wastewater goes through on-site septic tanks with canteen oily wastewater
pretreated via grease traps first. Production-area domestic sewage undergoes septic tank pretreatment
before entering municipal sewers for centralized park treatment. Core production wastewater is handled
separately: Coating line spray painting wastewater circulates in water-curtain paint mist facilities and is
regularly replaced; waste fluid is processed at the in-house coating wastewater station via flocculation
and air flotation Fenton oxidation biochemical treatment and final flocculation sedimentation.Countertop production wastewater is treated by the onsite stone sedimentation system and reused across
most processes with only occasional discharge. Quartz slab workshop wastewater flows to external
sedimentation facilities for flocculation settling then fully recycled with no external discharge.During the reporting period the Group's total wastewater discharge was 983959 metric tons comprising
33164 tons of industrial wastewater and 950795 tons of domestic sewage; the compliance rate for
wastewater pollutant monitoring was 100%.
3.4.3. Noise Management
Our primary sources of noise pollution stem from cutting and grinding during the production process
the operation of air compressors the operation of motor vehicles and the operation of fans and pumps
at the wastewater treatment plant. For different sources of noise we have implemented corresponding
control measures to mitigate their adverse effects including prioritizing the use of low-noise production
equipment adjusting equipment operating frequencies and implementing effective measures such as
foundation vibration reduction for individual high-noise equipment factory building sound insulation
installation of sound enclosures fitting fans with silencers and flexible pipe connections. We also
position high-noise equipment as far away from the factory boundary as possible and implement green
barriers around the perimeter. At the same time we have rationally scheduled the operating times of high-
noise equipment and strengthened equipment maintenance to reduce abnormal noise.
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We strictly enforce noise management standards such as the "Environmental Noise Emission Standard
for Industrial Enterprise Boundaries" (GB 12348-2008) and conduct regular noise monitoring at the plant
boundary. During the reporting period the Group's noise monitoring results all met the standards.
3.4.4. Waste Management
We follow the waste management principles of "reduction resource recovery and environmentally sound
disposal" establishing a full-lifecycle waste management system covering classification collection
storage transfer and disposal across the Group. We strictly abide by laws and national standards
including the "Law of the People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste" the "Pollution Control Standard for the Storage and Landfilling of General
Industrial Solid Waste" (GB 18599-2020) and the "Pollution Control Standard for the Storage of
Hazardous Waste" (GB 18597-2023). We strive to lower environmental impact and advance resource
recycling.
3.4.4.1. Non-Hazardous Waste
We implement systematic management of all types of non-hazardous waste generated during our
production and business operations primarily including office and domestic waste as well as general
industrial solid waste.? Comprehensive Sorting and Resource Recovery Orientation
We conduct detailed sorting of non-hazardous waste to maximize its recycling value. The Group's general
industrial solid waste primarily includes:
Wood-based materials Scrap wood wood dust scrap panels wood shavings etc.Metal Scrap metal aluminum scrap etc.Glass and Stone Scrap glass countertop scraps (stone/quartz) etc.Plastics and Packaging Scrap plastic scrap edge banding scrap packaging materials
(cardboard foam etc.).Others Scrap leather mixed-material waste etc.? Standardized Storage and Compliant Disposal
All of the Group's production sites have established and maintain temporary storage facilities for general
industrial solid waste in accordance with the GB 18599-2020 standard ensuring protection against wind
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rain and leakage. All general industrial solid waste is regularly entrusted to licensed entities with the
appropriate treatment capabilities for recycling or disposal.? Digital Ledgers and Closed-Loop Tracking
We have established a unified electronic ledger system for general industrial solid waste management
accurately recording information such as the source type weight time of removal destination and
responsible personnel of the waste. At the same time we strictly enforce the transfer manifest system
with all handover documents archived for record-keeping achieving closed-loop management and data
traceability throughout the entire process from generation to final disposal.? Management Performance and Data Disclosure
During the reporting period through systematic management the Group achieved the resource recovery
of a significant volume of general industrial solid waste. The Group-wide recovery of non-hazardous
waste reached tens of thousands of metric tons with waste wood and waste panels accounting for the
highest proportion effectively reducing the consumption of natural resources and the pressure on
landfills. We continuously monitor and disclose the generation and recovery volumes of various non-
hazardous wastes making our performance transparent and subject to public oversight.
3.4.4.2. Hazardous Waste
For waste with hazardous characteristics such as toxicity and flammability we have implemented stricter
controls and higher standards throughout the entire process to ensure environmental risks are managed
and disposal is conducted in compliance with laws and regulations. During the reporting period the
Group's various sites properly treated a total of 2248.01 metric tons of hazardous waste achieving a
100% proper disposal rate.
? Institutionalized and Standardized Management System
The Group has formulated and continuously revised the "OPPEIN Home Group Regulations on the
Management of Hazardous Chemicals" which includes a dedicated chapter on "Disposal of Hazardous
Chemical Waste." This chapter clearly defines responsibilities at every stage and strictly prohibits
unauthorized discharge. Each production base has formulated localized "Detailed Rules for Hazardous
Waste Management" in accordance with Group policies and the "National Catalogue of Hazardous
Wastes" (2025 Edition). These rules are supplemented by "HazardousWaste Disposal Training" materials
and all employees undergo regular training to ensure that frontline staff are proficient in the identification
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classification packaging labeling and emergency response requirements for hazardous waste.Case: Fire Drill for Spontaneous Combustion of Hazardous Chemicals
In June 2025 we held a specialized drill for hazardous chemical spontaneous combustion at Qingyuan
Solid Wood Plant. Simulating spontaneous combustion of hazardous waste during primer production
line operations frontline staff (machine operators panel handlers painters safety officers) responded
promptly completing incident reporting initial fire suppression and personnel evacuation per the
emergency plan. The drill effectively boosted safety awareness and on-site emergency response
capabilities of hazardous chemical-related personnel.? End-to-End Precision Management
Hazardous waste is identified and classified strictly
Precise according to its characteristics and in accordance with the
Classification "National Catalogue of HazardousWastes." Corresponding
and
Standardized hazardous waste identification labels are established and
Packaging these labels are updated and produced in compliance with
the latest national standards.
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Each Base is equipped with a dedicated hazardous waste
storage facility the design construction and
management of which strictly comply with the GB
High-Standard 18597-2023 standard. The facilities are treated to prevent
Storage
Facilities corrosion and seepage and are equipped with drainage
ditches containment berms and exhaust gas collection systems. Hazardous waste is stored in
designated zones and categorized; incompatible wastes are strictly separated and measures
are implemented to protect against wind rain and sunlight.All hazardous waste is consigned to qualified firms for
transport and disposal. Carriers must hold valid
hazardous material transport certifications and disposal
Compliant providers possess official Hazardous Waste Operating
Transfer and
Safe Disposal Licenses. Contractors’ qualifications and technical
capacity are legally verified beforehand with contracts signed to clarify pollution control
liabilities. The whole transfer process follows electronic and paper transfer manifest protocols
ensuring full traceability of all hazardous waste batches.? Data Monitoring and Compliance Oversight
Each Base maintains detailed hazardous waste management ledgers accurately recording information
such as the time of entry and exit source and destination weight type and quantity of
containers/packaging and storage facility identification numbers. Electronic records of hazardous waste
generation and intake are also entered into the solid waste management platform of the facility's
respective region.Hazardous Waste Management Ledgers
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3.4.5. Environmental Monitoring
In accordance with national laws and regulations such as the "Law of the People's Republic of China on
the Prevention and Control of Air Pollution" and the "Law of the People's Republic of China on the
Prevention and Control of Environmental Pollution by Solid Waste" we have formulated and
implemented regulatory standards including the "Environmental Protection Implementation
Specifications" "Procedures for Waste Gas Treatment and Emission Management" "Solid Waste
Management Procedures" and "Noise Management Procedures" to comprehensively strengthen the
control of pollutant emissions. During the production process we strictly ensure the compliant disposal
and emission compliance of organic exhaust gases and production-related dust. We entrust professional
agencies to handle hazardous waste generated by production processes in accordance with regulations
strictly enforce the environmental impact assessment system for construction projects and conduct
regular internal and external environmental monitoring.During the reporting period the Group's environmental protection facilities operated at a 100%
synchronous operation rate and the compliance rate for pollutant monitoring was 100%.
3.5. Green and Eco-friendly Commitment Production System
The Group consistently adheres to the principle of green and environmentally friendly production and
operations ensuring that every stage—from raw material selection design and production to
transportation and end-user installation services—strictly follows green and environmental standards.Guided by an environmental design philosophy centered on sustainable development we continuously
build a green industrial chain across the entire process encompassing integrated green production
solutions and systematic environmental monitoring standards thereby forming a scientific and rigorous
closed-loop green production system. This system effectively improves energy efficiency reduces
environmental pollution and makes a positive contribution to promoting the Group's green
transformation and social sustainable development.
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Schematic Diagram of the Green and Eco-friendly Commitment Production System
3.5.1. Green Factory
In compliance with the "Action Plan for Green and Low-Carbon Development in Manufacturing (2025–
2027)" we prioritize carbon footprint management solid waste recycling and clean energy application.
Green raw material adoption and plant energy-saving upgrades have greatly cut resource consumption
while renewable energy projects optimize the energy structure. Stringent exhaust and noise emission
controls have enabled full solid waste recycling. We apply green building principles to facility
construction. Locally sourced low-carbon high-performance and durable Eco-friendly Commitment
materials are prioritized to lower lifecycle energy use. Optimized building orientation efficient energy-
saving lighting and full use of natural daylight balance natural and artificial lighting reducing lighting
power consumption. Factory-side ventilation systems improve workshop air circulation and ease air
conditioning demand. Ecological greening features low-maintenance highly adaptable native plants to
curtail upkeep costs.
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During the reporting period thanks to its outstanding practices in environmental management and
comprehensive resource utilization OPPEIN Group was successfully included in the list of provincial-
level "Green Factories" announced by the Guangdong Provincial Department of Industry and
Information Technology. As of the end of the reporting period the Group had accumulated one national-
level Green Factory certification and two provincial-level Green Factory certifications.OPPEIN was successfully included in the list of provincial "Green Factories" announced by
the Guangdong Provincial Department of Industry and Information Technology
3.5.2. Green Design
Green design is the strategic core of OPPEIN's commitment to sustainable development aiming to reduce
the environmental impact of products throughout their entire lifecycle from the source. We deeply
integrate elements such as environmental protection energy conservation health and recyclability into
the initial stages of product R&D and design dedicated to providing consumers with home solutions that
combine aesthetic appeal functionality and environmental value.
3.5.2.1. Green Design Principles
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Our green design permeates the entire process—from product concept and material selection to structural
processes packaging and transportation and even recycling and disposal—primarily adhering to the
principles of "material reduction low environmental impact long service life and maintainability and
recyclability and circularity."
Green Design Principles
By optimizing product structures and adopting lightweight designs we minimize the
Reduce consumption of raw materials energy and water resources while ensuring product
performance and safety.We prioritize the use of renewable recyclable and Eco-friendly Commitment materials with
Low
a small environmental footprint while strictly limiting or prohibiting the use of hazardous
Environmental
substances (such as formaldehyde and heavy metals) to reduce potential risks to the
Impact
environment and human health at the source.Durability & Design products that are durable easy to maintain and repair extending their service life and
Maintainability reducing waste generated by frequent replacements.We consider disassembly and material separation at the end of a product's lifecycle
Recyclability &
prioritizing single-material or easily separable composite structures to increase material
Circularity
recycling rates and support the circular economy.
3.5.2.2. Raw Material Selection
In the procurement of core raw materials such as particleboard we implement sustainable sourcing
practices prioritizing suppliers with FSC/PEFC forest certification to ensure that wood sources are legal
and sustainable. At the same time we actively promote the use of formaldehyde-free panels to
significantly reduce the risk of formaldehyde emissions at the source thereby safeguarding indoor air
quality and consumer health. For specific details on raw material procurement standards and
certifications please refer to the "Supply Chain – Sustainable Procurement" section.
3.5.3. Clean Production
Clean production underpins the Group’s strategy for energy conservation emission reduction pollution
prevention at source and improved resource efficiency. Embedded in environmental policy it runs
through design production and service via technological upgrades process optimization and equipment
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renovation fostering an efficient clean and low-carbon modern production model. Environmental
protection and emission reduction guide product research and upgrading. The Group develops and
promotes advanced clean production technologies to reduce and control key pollutants—including waste
gas dust and wastewater—at the source. High-efficiency facilities automated production lines and
world-class environmental treatment equipment further underpin source-side clean production. It has
launched Asia’s first furniture powder-coating line realizing zero VOC emissions in coating and over
75% lower carbon emissions versus traditional baking paint processes. Green practices such as water-
based paint substitution and low-energy PUR edge-bonding and moulding technologies are also being
rolled out. By integrating smart manufacturing with green processes the Group delivers Eco-friendly
Commitment home products supporting the high-end and low-carbon transformation of Guangdong’s
manufacturing industry.Case: Introduction of High-Efficiency Energy-Saving Equipment
In our clean production practices we actively adopted high-efficiency energy-saving equipment—the
German Diefenbach continuous press. This equipment utilizes continuous flat-press technology and a
fully digitalized control system reducing electricity and heat consumption by 20% compared to
traditional intermittent presses. Simultaneously by precisely controlling panel thickness and density
distribution it improves wood utilization and saves 15% in raw materials.Replacing traditional high-energy-consumption processes with more efficient and energy-saving
equipment not only reduces energy consumption and timber resource depletion at the source but also
sets an energy efficiency benchmark for the engineered wood panel manufacturing sector. By
continuously promoting the upgrade of green equipment across the industrial chain we are embedding
the concept of clean production into the front lines of manufacturing helping to build a more low-
carbon and sustainable industrial ecosystem.
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Case: Systematic Material Recycling
We adopted a full-process recycling solution covering design production and waste management. By
combining CutRite software with the Group’s XMES system and adopting thin diamond saw blades
we lifted panel comprehensive utilization rate by 5%–10%. We also set standards for idle panel reuse
and built waste conveying lines. Qualified leftover materials are automatically allocated to produce
baseboards and fixtures. These measures form a complete closed-loop material system cutting raw
material use and solid waste output.
3.5.4. Eco-friendly Commitment Products
We are committed to Eco-friendly Commitment green home products integrating environmental
protection health and low-carbon concepts into the entire R&D and innovation process. Through
continuous iteration of green technologies strict corporate standards and promotion of product carbon
footprint management we strive to build healthier safer home life for consumers lead the custom home
furnishings industry’s green transformation and construct a new healthy home ecosystem.In technology and standards Our "Formaldehyde Reduction Enterprise Standard" limits formaldehyde
emissions to ≤0.02 mg/m3 far exceeding the new national ENF standard (≤0.025 mg/m3). As an industry
leader in environmental standards we have continuously upgraded Eco-friendly Commitment
technologies evolving from "Formaldehyde-Free 1.0" to "Formaldehyde-Free 4.0". For green product
promotion and certification we actively pursue authoritative domestic and international green
certifications to enhance market and consumer recognition of our Eco-friendly Commitment philosophy.During the reporting period the group standard "Formaldehyde-Free EngineeredWood and Its Products"
(T/CNFA 3040-2025) co-developed by us with the Chinese Academy of Forestry was officially
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approved and will take effect onAugust 1 2025. Centered on "zero formaldehyde addition in production"
it sets a more authoritative and stringent environmental benchmark for the wood-based panel industry.As a participating drafter OPPEIN continues to lead the industry in environmental standard upgrading.OPPEIN's Journey of Environmental Technology Upgrades
Adopting formaldehyde-free base materials combined with patented formaldehyde-
Formaldehyde-Free
removing and antibacterial technology officially ushering in the era of scientific
1.0 Era
formaldehyde removal.Formaldehyde-Free A leap from formaldehyde-free cabinet bodies to formaldehyde-free cabinets as a whole
2.0 Era deeply establishing a new Eco-friendly Commitment living environment.
Further refining technological applications we pioneer a new blueprint for healthy living
Formaldehyde-Free
spaces—expanding from whole-cabinet formaldehyde removal to 360° spatial
3.0 Era
purification of cabinet doors and walls.Launching the Formaldehyde-Removing and Antibacterial Green Panel which utilizes
Formaldehyde-Free MDI formaldehyde-free technology combined with patented formaldehyde-removing
4.0 Era and antibacterial technology. This not only achieves zero added formaldehyde but also
actively purifies formaldehyde in the space.During the reporting period the OPPOLIA was honored with the title of "2024 Home
Furnishings Consumer Reputation List: Eco-friendly Commitment and Healthy Brand."
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Case: Formaldehyde-Free and Antibacterial Ai Xin Board
We continuously upgrade Eco-friendly Commitment panels in green product innovation. New panels
feature formaldehyde emission ≤0.02 mg/m3 exceeding the national ENF standard of 0.025 mg/m3.Launched in 2021 Ai Xin Board with patented purification and antibacterial tech has benefited over
one million families. It achieves 95.1% formaldehyde removal rate far above the national standard
plus over 99.9% antibacterial rate top-grade mildew resistance and 98% TVOC removal rate with
official certification. It realizes all-round healthy performance covering formaldehyde elimination
antibacterial mildew-proof and deodorization.Case: Healthy Cabinets
In accordance with the "Brand Evaluation: Healthy Cabinets"
(T/GIEHA061-2023) issued by the China Brand Building Indoor
Air Brand Cluster and the Guangdong Provincial Indoor
Environmental Hygiene Industry Association we passed the
evaluation by an industry-designated third-party certification
body. Our healthy cabinets achieved 100% pass rate in sampling
reviews for formaldehyde emission TVOC emission rate
antibacterial rate and durability and were awarded the "Healthy Cabinets" brand logo. Our other home
furnishings also fully meet the requirements of "General Rules for the Evaluation of Healthy Whole-
Home Customization" (T/CFDCC 0607-2023) and obtained Eco-friendly Commitment home product
certification.
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Case: Product Carbon Footprint Certification
In April 2025 we assessed the product carbon footprint of the JZT-Q901G household gas stove and
released the corresponding assessment report a key step in promoting green low-carbon
transformation in the kitchen appliance sector.Adopting a "cradle-to-gate" boundary (covering raw material extraction transportation
manufacturing) the assessment shows each unit emits 77.6 kg CO?eq. Raw material
extraction/processing (37.67%) manufacturing (34.07%) and transportation (26.29%) are the main
sources; electricity consumption in production accounts for 97.08% of emissions highlighting the
need for energy conservation. We will optimize eco-design raw material use and production
processes accelerate energy-saving upgrades and clean energy adoption and reduce the product’s
carbon footprint to enhance green product competitiveness."China Environmental Labeling Product Group Selected as "Grade A Supplier for
Certification Certificate" Green and Low-Carbon Medical Building
Materials"
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3.5.5. Streamlining Packaging
We fully recognize packaging’s impact on resources and the environment and are committed to
promoting its reduction greening and circularity through strategy systems and technological innovation
aiming to build a full-supply-chain green packaging system. We have refined packaging processes
revised standards to eliminate redundant components and optimized protection to reduce product
damage and save resources. In logistics we promote reusable packaging adopt "palletized transport"
and use returnable pallets significantly cutting single-use materials like cartons and stretch film. During
the reporting period the Group's overall consumption of packaging materials showed a downward and
optimized trend. Specifically consumption of corner protectors decreased by approximately 49% year-
over-year while consumption of edge/surface cushioning materials decreased by approximately 39%.Going forward we will deepen packaging streamlining optimize designs to reduce material use and
increase biodegradable/recyclable materials explore a systematic packaging recycling system and
collaborate with partners to extend green packaging across the entire value chain.Case: Practices in Packaging Reduction and Recycling
* Replacing single-use paper packaging with recyclable plastic crates in raw material procurement
* Precision optimization of corrugated cardboard dimensions to improve packaging material
utilization and avoid material waste caused by size mismatches resulting in a year-on-year
reduction in corrugated cardboard consumption of approximately 6%
* Adopting stretch EPE material for surface protection reducing consumption of surface
protection materials while maintaining the same level of protection
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* For finished kitchen and clothing products we optimized the removal of EPS foam packaging
from long edges reducing EPS edge protector consumption by approximately 26% and EPS
corner protector consumption by approximately 36% year-over-year
* Replace wooden pallets with reusable steel pallets for logistics and transportation
3.5.6. Low-Carbon Delivery
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To build an integrated transparent intelligent and Eco-friendly Commitment home furnishing delivery
system we implement the Group’s "intact timely and low-cost" delivery strategy.We focus on four core
areas—trunk line integration scheduled freight palletized transport and digitalization—to optimize our
logistics model continuously. This establishes an integrated delivery platform driving the full-chain
green delivery system’s systematic upgrade. We will launch Delivery Reform Version 4.0 to build a fully
digital supply chain delivery network. Logistically we will expand palletized transport and deploy the
TIMS intelligent logistics system for end-to-end data integration. For delivery we will adoptAI-powered
customer service optimize localized delivery/warehousing and enhance trunk line integration and last-
mile management to boost service efficiency comprehensively.
3.5.6.1. Automation and Smart Logistics
Centered on smart manufacturing we have widely deployed automated and intelligent equipment in
factories and warehouses. We’ve built an AGV and smart logistics network to form a"touchless"
automated circulation system for materials semi-finished and finished products. This eliminates waiting
time empty runs and manual errors of traditional handling greatly boosting logistics turnover efficiency.It also cuts energy consumption from personnel movement and idle equipment enhancing source-side
energy efficiency and reducing indirect emissions.In the workshops of our five major production bases AGVs and forklifts achieve
positioning accuracy of ±10 mm through laser navigation allowing them to dock
precisely beside equipment to complete material transfers. The system pre-schedules
AGVs to stand by according to production rhythms avoiding idle waiting during
process transitions; when path conflicts occur an automatic avoidance mechanism
Laser-Guided is triggered significantly reducing waiting times for material transport.AGVs
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The 20-meter-high intelligent automated storage and retrieval system (AS/RS)
resembles a "floating bookshelf" with each storage bin assigned a unique code.AGV palletizers perform storage and retrieval operations at a speed of 120 meters
per minute with positioning accuracy of ±5 millimeters completing a single
operation within 30 seconds. When finished goods are put into storage the system
allocates storage bins based on "order zone + shipping time" ensuring efficient
Smart
turnover and 100% picking accuracy.Warehousing
Full-Line Logistics Automation
Ground-Based Automated Transport System
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3.5.6.2. Transportation Mode Optimization and Trunk Line Integration
By optimizing transportation organization models and integrating urban trunk lines we have reduced
unnecessary transport and turnover thereby lowering carbon emissions from trunk line transportation.We have fully implemented the "palletized transport" model and achieved key stages of the "Three-Year
Smart Delivery" initiative including automated pallet stacking and pallet consolidation. Goods are
transported in standardized pallets ensuring no pallet reloading throughout the entire process. From 2023
to 2025 the Group's retail palletized transport rate surged from 4.41% to 95.88% with the mall palletized
transport rate rising from 0.48% to 19.82% and the transportation damage rate decreasing by 35.25%.We advanced the implementation of "trunk line transportation integration" significantly improving
logistics efficiency by consolidating transport routes increasing vehicle load factors reducing departure
frequencies and minimizing empty-run mileage. By utilizing the Intelligent Dispatch System (TIMS) to
plan optimal routes and adopting a "rail-road" multimodal transport solution for long-distance transfers
between bases we established a more convenient and Eco-friendly Commitment transportation system.At the same time the Group directly oversees the quality of logistics and transportation services
providing more timely accurate and low-carbon logistics services to meet customer needs and enhance
dealer and customer satisfaction. During the reporting period the Group's logistics delivery customer
satisfaction score reached 9.12 points (out of 10) a year-over-year increase of 5.07%.Case: Smart Cross-Base Logistics
Material transfers between bases follow the "data-first" principle. When Tianjin needs to transfer panels
from Chengdu OPPEIN's smart manufacturing system first transmits specifications quantities and
quality data. After confirming inventory it automatically generates a "rail-road" intermodal transport
plan ensuring delivery within 48 hours. Simultaneously GPS is used to track the cargo's location in real
time allowing the receiving party to plan for receipt and production in advance achieving "zero-wait"
handover.
3.5.6.3. Redesigning the Last-Mile Network
We have established a multi-tiered warehousing network comprising "main base—distribution/central
warehouse—forward warehouse/retail store." By pre-positioning goods in regional warehouses near
consumer markets we integrate last-mile warehousing resources to enable "localized delivery of
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furniture and kitchen appliances." This standardizes and unifies "last-mile" logistics delivery service
standards while reducing the risk of transportation damage. By restructuring the last-mile warehouse
network we have reduced waste of labor and resources in intermediate logistics stages improved
logistics efficiency and the success rate of one-time installations at the end-user level and achieved dual
optimization of time and energy costs throughout the logistics and transportation process.
3.5.6.4. Emissions Reduction Management for Transportation Vehicles
We purchased or leased new energy buses to replace high-emission vehicles for official and shuttle
transportation. At the same time we strictly require vehicles and personnel entering the factory premises
to meet environmental standards. We have signed the "Safety and Environmental Protection Agreement
for External Vehicles and Personnel" with vehicle carriers prohibiting vehicles that have not passed
annual inspections are scrapped exceed exhaust emission limits leak oil while driving or discharge
other waste from performing transportation operations. We also require all carriers to dispose of and store
waste at designated locations and to turn off their engines to save energy when vehicles are parked and
waiting on the premises for extended periods.During the reporting period we purchased and leased a total of 18 new energy sightseeing vehicles
medium-sized buses and small passenger vehicles. This initiative is expected to reduce CO? equivalent
emissions by approximately 73.3 tons annually and cut emissions of pollutants such as nitrogen oxides
non-methane hydrocarbons and particulate matter by approximately 0.26 tons.
3.5.7. Recycling and Reuse
We adhere to the solid waste management principles of "reduction resource recovery and harmless
disposal" integrating the concept of a circular economy into the final stages of our operations. We are
committed to maximizing the recovery and reuse of various types of waste during the production process
reducing reliance on virgin resources and the volume of final disposal promoting a closed-loop flow of
resources and contributing to the development of a circular society.At our production sites we have established a systematic waste classification recycling and resource
recovery system to ensure that the vast majority of general industrial solid waste is properly recycled or
disposed of in an environmentally sound manner. All recyclable general industrial solid waste (such as
scrap wood scrap metal waste cardboard and waste glass) is sorted collected and temporarily stored
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on-site. We have established long-term partnerships with legally licensed recycling companies regularly
entrusting them with the professional recycling and reprocessing of the aforementioned waste. In the
logistics sector we actively promote reusable packaging and transport containers as alternatives to single-
use materials.In the future building upon our existing production waste recycling system we will further expand the
boundaries of the circular economy.Wewill establish closer circular economy partnerships with suppliers
recyclers and distributors to jointly design products and packaging that are easy to recycle thereby
driving a green and circular transformation across the entire industrial chain.
3.6. Ecosystem and Biodiversity Conservation
We place high importance on ecosystem and biodiversity conservation and fully implement the
ecological sustainability goals set forth in the "China Biodiversity Conservation Strategy andAction Plan
(2023–2030)."We are committed to identifying and minimizing potential negative impacts on the natural
environment in our operations complying with relevant ecological protection regulations and
contributing to the protection of natural habitats and biodiversity through sustainable procurement site
greening and environmental compliance management.During the site selection phase for new projects we factor in ecological impacts to ensure that project
locations do not encroach upon ecological protection red lines or permanently protected ecological areas
and that our operations do not directly occupy or disrupt important local ecological functional areas such
as wetlands and nature reserves. All new construction and renovation projects undergo environmental
impact assessment procedures in accordance with the law and obtain approval from the competent
environmental protection authorities. Project construction and operations strictly adhere to the ecological
conservation and pollution prevention measures outlined in the environmental impact assessment reports
and approvals. During the production process we strictly implement clean production standards and
pollution prevention measures effectively manage risks of soil and groundwater contamination and
strive to reduce the environmental burden of our production activities. In the procurement of our core
raw material particleboard we actively promote sustainable procurement policies prioritizing
collaboration with suppliers holding internationally recognized forest certifications such as the Forest
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Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC). This
ensures that timber is sourced from responsibly managed forests and adheres to strict standards for
protecting biodiversity maintaining ecosystem functions and safeguarding habitats of rare species. None
of the Group's or its subsidiaries' production sites are located within national nature reserves or
biodiversity priority areas. As of the end of the reporting period the Group had no projects that
significantly impacted biodiversity.Furthermore in the planning and construction of each production site we allocate a certain proportion
of land for greening planting suitable native plants and providing habitats for small organisms such as
insects and birds. At the same time we actively participate in various ecological and environmental
protection activities constantly monitoring the ecosystems and rare protected animals in the regions
where the Group operates and are committed to reducing the negative impact on biodiversity caused by
emissions and resource use during our operations.Case: Participating in the "Two New" Pioneer Forest Tree-Planting Initiative to Support the
"Green and Beautiful Baiyun" Initiative
In March 2025 the Group organized a delegation of Party members to participate in the Baiyun
District "Two New" Pioneer Forest Tree-Planting Event and the "Three Micro" Tree-Planting
Campaign. In the designated area employees personally planted saplings putting the concept that
"lucid waters and lush mountains are invaluable assets" into practice through concrete actions and
adding new greenery to the "Green and Beautiful Baiyun" initiative. This event not only contributed
to improving the local ecological environment but also conveyed the positive energy of green
development to society demonstrating the company's commitment to advancing ecological
civilization.
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4. SUPPLY CHAIN
An efficient rigorous and green supply chain system serves as an important guarantee for the sustainable
development of OPPEIN. Guided by the Group’s strategy of building a world-class outstanding home
enterprise OPPEIN fully leverages its scale and brand advantages. Taking the digital transformation and
upgrading of the Group’s supply chain as an opportunity it advances the reform of the comprehensive
supply chain system and integrated procurement moving toward the business goal of "improving quality
reducing costs and upgrading the system". In addition the Group continuously builds a supply chain
system compatible with the integrated home business model and improves supply chain management
systems. It firmly pursues coordinated development with partners implements the sustainable
development strategy of win-win cooperation and symbiosis and builds a green supply chain featuring
mutual benefit and co-prosperity.
4.1. Sustainable Procurement
The Group continues to practice responsible procurement and incorporate sustainable procurement into
its ESG strategy. It sets annual emission reduction targets and green procurement proportion targets
which are promoted under the leadership of the Group’s senior management. In accordance with the
"Bidding and Tendering Law of the People's Republic of China" and other relevant laws and regulations
the Group has formulated the "OPPEIN Home Group Integrated Procurement Management Guidelines"
the "OPPEIN Home Group Procurement Price Management Regulations" and the "OPPEIN Home
Group Procurement Development and Supplier Selection Management Regulations". These policies
enable precise matching of supplier resources with procurement demands strictly standardize
procurement procedures and unify internal material specifications as well as procurement technical and
quality standards. The Group pursues high standards in the selection of raw materials and has established
procurement criteria stricter than national requirements. FSC and PEFC forest certification qualifications
are set as mandatory admission requirements for suppliers. The Group rejects high-carbon and high-
consumption raw materials without sustainable qualifications gives priority to recyclable renewable and
environmentally friendly materials with low environmental impact strictly controls material safety
implements integrity management throughout the process and realizes sustainable procurement.
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Supplier FSC-FM Forest Management Supplier Forest Certification
Certification
4.1.1. Environmentally Friendly Guarantee
The Group is committed to building a green procurement supply chain. In accordance with the "OPPEIN
Home Group Raw Material Procurement Technical Standard Management Specification" it gives
priority to suppliers with "China Environmental Labeling Certification (known as the 'Ten Circles'
certification)" so as to strictly control environmental access at the source. In terms of material structure
the Group sets quantitative substitution targets for recycled materials reclaimed materials and
agricultural waste-based materials and gradually reduces reliance on virgin materials with high
environmental load. In terms of chemical safety it continuously promotes the application of raw and
auxiliary materials with low or zero VOC emissions. Meanwhile the Group strictly implements the series
of "Technical Requirements for Environmental Labeling Products" (including Cabinet HJ/T 432
Furniture HJ 2547 Wooden Door HJ 459 etc.) and strictly enforces the Supplier "Material Self-
Declaration" System to commit to eliminating hazardous substances. In the future the Group will launch
a green procurement management system to automatically screen sustainable suppliers track
certification qualifications and statistically measure emission reduction effects thereby building a solid
barrier for end-to-end green procurement.The Group attaches great importance to raw material certification and strives to comprehensively
increase the certification proportion. It exercises strict management over suppliers’ timber sources
prioritizes suppliers that impose rigorous supervision on timber origins and strictly prohibits raw
materials of illegal origin from entering the Group’s supply chain. During the reporting period the
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proportion of timber and paper raw materials traceable to their place of origin in the Group’s procurement
reached 100%; the pass rate of raw materials complying with strict certification standards in procurement
stood at 100%; and there were 406 suppliers certified with the ISO 14001 Environmental Management
System.China Environmental Supplier Environmental Supplier Green Product
Labeling Certification Management System Certification
Certification
4.1.2. Safety Guarantee
The Group always regards material safety as the core of responsible procurement continuously improves
the safety and reliability of raw materials and products in the supply chain and strictly supervises
suppliers’Environment Health and Safety (EHS) standards striving to provide customers with safer and
more reliable home furnishing products.The Group has established a rigorous raw material quality and safety inspection system and formulated
the "New Material (Product) Appraisal and Trial Management Regulations". Suppliers are required to
provide timely documents such as Material Safety Data Sheets (MSDS) and test reports issued by
authoritative third-party inspection institutions. Meanwhile the Group conducts random product safety
tests via its CNAS-certified laboratory ensuring that products at the source meet safety performance
requirements including flame retardancy corrosion resistance and compression resistance as well as
safety limit requirements for chemical substances such as formaldehyde TVOC and toluene. In addition
the Group has issued the "OPPEINHome Group Contractor Safety Management Regulations". It clarifies
requirements for contractors and suppliers regarding employees’ occupational health and safe working
conditions in procurement activities reviews their safety qualifications and signs safety agreements.
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Partners are required to provide employees with qualified personal protective equipment and a safe
working environment eliminate occupational health risk factors and fully ensure safety and occupational
health in the raw material production process.To strengthen supply chain quality and safety management the Group continuously improves the
mechanism for recovering liability-related expenses from suppliers and encourages suppliers to enhance
product quality by establishing a quality traceability and assessment system. During the reporting period
741 suppliers passed ISO 9001 or equivalent quality management system certification and 484 suppliers
passed ISO 45001 occupational health and safety management system certification.Qualification Certificate forAntibacterial Certification for Children-safe Grade
Label Trial Use Products
4.1.3. Integrity Guarantee
In terms of supply chain integrity management the Group has formulated systems including the
"Detailed Working Rules for Off-site Departments of the Supply Chain Management Center" the "Trial
Inspection Operation Rules of the Supply Chain Management Center" the "Trial Point Management
Operation Rules of the Supply Chain Management Center" and the "Ten Prohibitions for Staff of the
Supply Chain Management Center in Communications with Suppliers". These regulations strictly
standardize interactions between supply chain practitioners and suppliers firmly oppose all forms of
bribery in procurement activities including disguised forms and the direct offering or acceptance of
bribes and strive to build a fair and incorruptible supplier relationship. To create a fair impartial and
transparent business environment the "Integrity Cooperation Commitment Letter" is incorporated into
the procurement contracts of the Group and its affiliated enterprises. The document clearly sets out
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integrity and self-discipline requirements that all suppliers must abide by and specifies reporting
channels for improper interest conduct so as to ensure open cooperation and safeguard the interests of
both parties.During the reporting period all suppliers of the Group have signed the "Integrity Cooperation
Commitment Letter" achieving a signing rate of 100%. A total of 5 integrity training sessions were
organized for suppliers.Integrity Cooperation Commitment Letter
Supplier Integrity Promotion
4.2. Supplier Management
The Group optimizes its supplier management system to cultivate high-quality industrial resources and
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build classified supplier databases. Suppliers are categorized as core and reserve suppliers with overall
supply chain quality upgraded via dynamic evaluation mechanisms. Digital intelligent and streamlined
governance strengthens sustainable supply chain capacity. The Group treats SMEs equally and expands
cooperation opportunities forging long-term partnerships to help them upgrade technology and
management capabilities. It also advances supplier ESG performance evaluation promotes coordinated
development with partners practices mutually beneficial sustainable strategies builds a green win-win
industrial ecosystem and develops a fully covered efficient and resilient diversified supplier system.During the reporting period the Group’s supplier database included a total of 2089 suppliers among
which 2081 were domestic suppliers and 8 were overseas suppliers all of whom have signed and
complied with the Group’s supply chain code of conduct. The Group’s localized supply chain strategy
has achieved remarkable results with both the proportion of local suppliers and the proportion of local
procurement amount exceeding 99% providing strong support for the stable operation and operational
efficiency of the supply chain.
4.2.1. Supplier ESG Management
The Group deeply integrates ESG management philosophy into the supplier management system and
attaches great importance to supplier ESG performance. It has established a full-process sustainable
supply chain management mechanism conducting ESG admission evaluation on newly introduced
suppliers covering environmental management work safety labor rights and interests and social
responsibility. In addition the Group gives priority to suppliers with sustainable certifications and
requires all suppliers to sign the "Supply Chain Code of Conduct". Through institutionalized and
standardized management measures the Group continuously elevates the ESG management level of the
supply chain and builds a value chain ecosystem that is environmentally friendly and socially
responsible.
4.2.1.1. ESG Evaluation
The Group thoroughly embeds ESG evaluation into the full lifecycle management of supplier
cooperation and establishes a three-dimensional evaluation system covering environmental
responsibility social responsibility and governance effectiveness. It systematically identifies
improvement opportunities for suppliers in key areas such as resource utilization efficiency labor rights
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protection and business ethics compliance driving the supply chain to transform from compliance
control to value co-creation. By conducting supplier ESG evaluation and admission surveys the Group
forms a dynamic closed-loop management model encompassing evaluation feedback and optimization
strengthens the consensus on sustainable development across the supply chain helps suppliers improve
their ESG governance capabilities and jointly builds a more resilient industrial ecological chain against
the backdrop of the dual-carbon goals.During the reporting period a total of 2089 suppliers have signed and complied with the Group’s Supply
Chain Code of Conduct. Among them 613 suppliers hold sustainable certifications and 30 suppliers
have completed environmental and social review (ESG review).OPPEIN Supplier ESG Evaluation System
Evaluate suppliers' energy consumption and emission status require them to
provide energy audit reports and ensure compliance with environmental protection
Environmental
standards.Evaluation
Inspect suppliers' waste disposal methods encourage the adoption of
Indicators
environmentally friendly treatment technologies and reduce the impact on the
environment.Examine suppliers' protection of employees' rights and interests including salary
and benefits working hours and labor safety and eliminate illegal employment
Social
practices.Evaluation
Evaluate suppliers' community relations pay attention to their public welfare
Indicators
participation and community feedback and promote suppliers to fulfill their social
responsibilities.Verify suppliers' corporate governance structure pay attention to decision-making
Governance transparency and internal supervision mechanisms and ensure standardized
Evaluation enterprise operation.Indicators Verify suppliers' business ethics guard against commercial bribery and unfair
competition practices and maintain a fair market competition environment.
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Supplier ESG Full Lifecycle Management (Taking OPPEIN Particleboard as an Example)
Classify according to the degree of environmental impact of raw
materials conduct annual audits on core suppliers covering
Hierarchical Audit and
environmental compliance carbon emissions resource
Dynamic Evaluation
consumption and labor safety and establish a "red-yellow-green"
rating and exit mechanism.Clarify carbon emission reduction targets waste disposal
Signing of Sustainable
requirements traceability requirements and penalty clauses for
Procurement
environmental protection violations in procurement contracts and
Agreements
link sustainability indicators with payment and contract renewal.Provide suppliers with environmental protection technology
Supplier Empowerment
training green electricity procurement guidance and circular
and Collaborative
process support jointly research and develop low-carbon production
Carbon Reduction
solutions and share emission reduction benefits.
4.2.1.2. ESG Support
As an active practitioner in supply chain ESG development the Group has proactively built a full-chain
empowerment system and supports the sustainable development of suppliers through core approaches
including green transformation support joint development of social responsibility and governance
capability improvement. The Group has established a supply chain governance exchange system and
shares valuable experience in risk management corporate strategy and strategic planning with suppliers
assisting them in improving their internal governance structure enhancing the soundness of decision-
making and operational efficiency. Both parties jointly explore a sustainable development governance
model suitable for the home furnishing industry. In terms of social responsibility fulfillment the Group
strengthens high-quality cooperation with suppliers to enhance the corporate social image and brand
value. Meanwhile it has built an employee exchange mechanism for the supply chain system. Through
a cross-enterprise employee exchange platform the Group promotes experience sharing and capacity
building in the supply chain system covering labor rights and interests protection occupational health
and safety and employee benefits so as to drive the overall improvement of social responsibility
performance across the entire supply chain.
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During the reporting period the Group organized 18 ESG training sessions for suppliers.Group's Support for Suppliers' ESG Performance Improvement
Provide suppliers with environmental protection technology training share energy
conservation and emission reduction experience and help suppliers improve their
Technology
environmental management capabilities; Conduct social responsibility training to
and Training
enhance suppliers' capabilities in protecting employees' rights and interests and
Support
handling community relations so as to promote the harmonious development of
society.Provide suppliers with green financial resources assist them in obtaining loans and
Resource and subsidies for environmental protection projects and promote their green
Cooperation transformation; Establish a supplier cooperation platform to facilitate experience
Support exchange and resource sharing among suppliers and jointly improve ESG
performance.Set up a reward mechanism for suppliers with excellent ESG performance and
Incentive and
provide incentive measures such as order preference and honorary recognition;
Feedback
Regularly feedback ESG evaluation results to suppliers put forward improvement
Mechanism
suggestions and help them continuously improve their ESG performance.
4.2.2. Digital Management
The Group advances digital strategy by issuing unified procurement management guidelines and
category strategy regulations and carries out comprehensive supply chain reform to restructure
integrated procurement workflows. Following connectivity collaboration sharing and standardization
principles it deployed a supplier collaboration SRM system to drive centralized procurement platform
coordination. This achieves end-to-end connection information synchronization and full-process
monitoring across the supply chain forming a fair transparent and efficient digital supplier management
framework.
4.2.2.1. SRM System
The Group has built a digital management system centered on the SRM (Supplier Relationship
Management) platform. Through system integration and process reengineering it realizes closed-loop
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full-lifecycle supplier management covering source selection and admission registration review
conversion from potential to qualified suppliers daily supervision and elimination mechanism. The
platform not only ensures the orderly and controlled operation of the supplier system but also supports
online collaboration throughout the entire procurement process including contract signing inquiry and
bidding order placement and deposit notification. Meanwhile the Group has formulated supporting
administrative rules for the SRM system to fully standardize system operations supplier conduct and
data security management effectively improving supply chain operational efficiency and risk control
capability. In addition the Group deepens integrated procurement collaboration via a dual closed-loop
mechanism establishes an efficient two-way communication channel with suppliers and greatly
accelerates the flow of supply chain information.During the reporting period all production bases and procurement organizations under the Group have
been incorporated into unified SRM management.SRM System Management Regulations
* Operating Standards: Formulate the SRM System Operation Manual to
clarify operational standards and time requirements for each link.* Account Management: Implement a "one person one account" real-name
System Application
system with role-based access control (general users administrators
Specifications
supplier accounts).* Data Standards: Standardize material codes supplier codes and
qualification document templates to ensure data consistency.* Admission Requirements: New suppliers must complete registration and
Supplier-side
submit complete qualifications via the SRM system. No business
Management
activities are allowed without system approval.* Tiered Management: Establish a tiered protection mechanism for
Data Security and
supplier commercial information implementing permission isolation for
Compliance
sensitive data.
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SRM Supply Process
Realize two-way communication between the Group and suppliers via "two closed loops"
4.2.2.2. Supply Chain Informatization Construction
Leveraging the reform of its comprehensive supply chain system the Group advances supply chain
informatization construction by restructuring the IT architecture and collaborating with external
resources to enhance overall capabilities. Through annual planning the Group focuses on implementing
solutions for core modules including procurement specifications e-platform cost forecasting risk early
warning and performance evaluation. Meanwhile it improves the basic data and labeling system to lay
a solid foundation for building an efficient transparent and controllable digital supply chain.
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Based on the results of the comprehensive supply chain reform reorganize the
informatization development roadmap of the supply chain and optimize the
informatization architecture.Collaborate with external resources to explore opportunities to optimize the
supply chain digitalization and leverage external resources as needed to enhance
the digital maturity of the supply chain.Formulate the annual supply chain informatization plan. Starting from each
Supply Chain functional module of the supply chain develop targeted informatization solutions
Informatization
Construction for each module including standardization of procurement requirements E-
platform for sporadic procurement integration of new material development
processes reconstruction of material certification processes cost database price
forecasting automatic price extension supplier risk early warning supplier
performance evaluation and confidential price inquiry and advance the
implementation as planned.Improve the system's basic data and data labeling system to lay the necessary
groundwork for system application.
4.2.3. Full-Process Management
Benchmarking against world-class home furnishing enterprises the Group selects top-tier and highly
specialized suppliers in the industry to establish long-term strategic cooperative relationships. Guided bya series of management systems and procedures including the “Supplier Development and SelectionManagement Regulations" "Supplier Freezing and Exit Management Regulations” “SupplierOperational Performance Appraisal Management Regulations” and the “Supplier Change andReplacement Management Regulations” the Group implements dynamic management of suppliers
across dimensions such as development and admission due diligence tiered management performance
appraisal and freezing and exit. By evaluating suppliers’ capabilities in technology quality cost
response and delivery safety and environmental protection and other aspects the Group continuously
improves the full-lifecycle supplier management system driving suppliers to continuously improve and
enhance their supply capabilities.
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Supplier Management Process
4.2.3.1. Development and AdmissionThe Group continuously standardizes supplier admission criteria and has formulated the “OPPEIN HomeGroup Supplier Development and Selection Management Regulations.” It treats small and medium-sized
enterprises equally avoids discriminatory admission conditions and strictly implements the new supplier
selection process centered on qualification review on-site inspection product appraisal and supplier
conversion to formal status. Based on business types suppliers are classified into production-type
suppliers and non-production-type suppliers (trade/agency) all of which are required to provide
qualification certificates mandated by national laws and regulations. The Group implements categorized
admission management for different types of suppliers. It conducts research and analysis on the industrial
distribution of supply resources analyzing their geographical concentration or dispersion and the
competitiveness of supply industries in different regions and formulates a supplier industrial regional
layout plan suitable for the company to select suppliers reasonably by region.During the reporting period the Group identified and selected a total of 823 new suppliers of which 601
passed the assessment and were converted to formal suppliers and 62 potential suppliers were rejected
due to non-compliance.
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Admission Assessment Process
Supplier Conversion
Qualification Review On-site Inspection Product Appraisal
to Formal Status
Upon receiving the Production-type After the supplier After passing the above
supplier questionnaire suppliers must undergo passes the on-site processes the supplier
submitted by the an on-site inspection inspection the Group’s can proceed with
potential supplier after review. An on-site Supply Chain signing the
registering in the SRM inspection review team Management Center procurement contract
system the Group composed of the and demand collecting performance
engineers conduct supply chain R&D departments will bonds issuing
initial review and process quality and conduct small sample purchase orders and
preliminary review EHS departments will and small-batch other related work to
and comprehensively conduct scoring appraisal. Formal become a formal
compare the results of respectively. cooperation can only supplier within the
the initial review and begin after the Group’s system.preliminary review. appraisal is passed.
4.2.3.2. Due Diligence
Qualification Review Checklist
Supplier Type Questionnaire Content
Legal representative information / Enterprise
qualifications / Production and operational
Production-type
Production-type capabilities / Quality and technical capabilities /
Questionnaire
Pre-sales and after-sales service capabilities /
Financial information / Related suppliers etc.Legal representative information / Enterprise
Non-production-type qualifications / Pre-sales and after-sales service
Non-production-type
Questionnaire capabilities / Financial information / Agency
qualifications etc.Simplified Legal representative information / Financial
Others
Questionnaire information
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The Group attaches great importance to supplier due diligence and requires production-type suppliers to
undergo mandatory on-site inspection and review. Led by the Supply Chain Management Center an on-
site inspection and review team is formed by relevant departments including supply chain R&D process
engineering quality and EHS. The team conducts on-site inspections of suppliers and provides review
comments and proposes optimization directions for areas requiring improvement. An OPPEIN audit
matrix is developed across 12 dimensions together with the "Supplier On-site Inspection and Review
Form" "Supplier Delivery Capability Audit Form" and "Supplier Audit Report" ensuring full
traceability from on-site inspection to final decision-making.During the reporting period the Group continued to conduct on-site inspections of new suppliers with a
total of 124 suppliers inspected.Inspect the supplier's production processes Inspect the supplier's key equipment
Inspect the supplier's sandblasting equipment Inspect the supplier's packaging processes
4.2.3.3. Tiered Management
The Group has established a scientific tiered and categorized supplier management system. First based
on the characteristics of procurement categories it implements horizontal categorized management by
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business nature product characteristics and service types. Meanwhile it conducts vertical tiered
evaluation based on core indicators such as supplier qualification and credit historical performance
management level and innovation capability forming a matrix management structure to realize precise
matching and dynamic optimization of supplier resources.Materials and Finished Goods Strategic Supplier
Production Support and Auxiliary Preferred Supplier
Supplier
Marketing Services Supplier Tiering Qualified Supplier
Classification
Administrative Materials and Restricted Supplier
Services Disqualified Suppliers
4.2.3.4. Performance AppraisalThe Group has formulated the “OPPEIN Home Group Supplier Operational Performance AppraisalManagement Regulations” to promote standardized control of suppliers and improve supplier
management capabilities. Supplier operational performance appraisal refers to the dynamic management
of suppliers within the system evaluating their capabilities in technology quality cost response and
delivery safety and environmental protection and other aspects to measure their supply performance.The Group adopts unified evaluation standards to conduct fair and impartial assessments of suppliers.The appraisal results serve as the basis for decisions such as the allocation of procurement shares supplier
selection and elimination evaluation of partnership types and selection of suppliers for R&D product
participation.The Group conducts monthly and annual assessments of suppliers and has developed monthly/annual
management flowcharts. The Supply Chain Center Quality Department Procurement Department and
Planning & R&D Department jointly carry out supplier operational performance appraisal. The monthly
performance appraisal only evaluates quality response and delivery performance; quality response and
delivery performance are assessed according to the respective scoring rules of each business line
ultimately outputting "red-yellow-green" light indicators. The annual performance appraisal is a
comprehensive performance evaluation which comprehensively measures suppliers across dimensions
including technology quality cost response and delivery and safety and environmental protection
ultimately outputting comprehensive evaluation levels of "Excellent" "Qualified" "Restricted" and
"Eliminated" with the appraisal results publicly announced.
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During the reporting period the Group conducted performance appraisals for all non-one-time
procurement suppliers with a total of 1105 suppliers assessed.Supplier Operational Performance Appraisal
Evaluate suppliers in technical aspects such as independent R&D
Technical Appraisal capability product prototyping capability product stability and R&D
services with annual assessment conducted.Evaluate suppliers based on incoming material quality compliance in-use
quality compliance customer quality feedback integrity incidents and
Quality Appraisal
major quality anomalies with both monthly and annual assessments
conducted.Evaluate suppliers in aspects such as price reasonableness quotation
Cost Appraisal
timeliness and business service level with annual assessment conducted.Evaluate suppliers based on on-time delivery performance delivery
Response and
standardization delivery support services and response capability with
Delivery Appraisal
both monthly and annual assessments conducted.Evaluate the environmental performance of suppliers’ products including
testing for harmful substances such as formaldehyde emission TVOC
Safety and
emission and heavy metal content. For products involving water
Environmental
electricity gas flammable and explosive materials that have a significant
ProtectionAppraisal
impact on personal and property safety annual assessment of product safety
indicators is required.
4.2.3.5. Freezing and ExitTo ensure standardized control of the supply chain the Group has formulated the “Supplier Freezing andExit Management Regulations” which refine the operational procedures and requirements for each link
in the supplier freezing and exit process ensuring that the products or services provided by suppliers
meet the requirements of OPPEIN and its customers.During the reporting period a total of 5 suppliers had their cooperation terminated due to non-compliance.
115OPPEIN Home Group Inc.
Circumstances for Freezing and Exit
The supplier experiences major financial difficulties
Freezing The supplier engages in non-compliant supply behaviors
The supplier exhibits relatively serious abnormal supply behaviors
The supplier voluntarily proposes to exit
A supplier will be eliminated by the Group in the following circumstances:
a. Suppliers rated "Eliminated" in the annual appraisal;
Exit b. The Group no longer needs the products or services provided by the supplier;
c. The supplier’s annual operational performance is rated as eliminated;
d. In daily operations the supplier is deemed a non-conforming provider due to
major issues and eliminated.
4.2.4. Conflict Minerals Management of Suppliers
The Group attaches great importance to conflict minerals for itself and suppliers strictly complying with
international conventions national laws and industry initiatives (including the International Bill of
Human Rights OECD guidelines China’s mineral supply chain guidance and the U.S. SEC Conflict
Minerals Rule). Upholding legal operation and social responsibility it has established and improved a
conflict mineral traceability system and supply chain due diligence mechanism to ensure raw materials
are traceable and compliant. The Group signs conflict mineral avoidance statements with suppliers
conveys compliance requirements to all supply chain partners and conducts regular conflict mineral
audits to eliminate risks. Partners illegally using conflict minerals will have cooperation terminated
immediately with rectification measures.In terms of supply chain control the Group has formulated a sound conflict mineral traceability
management system and retains relevant documents such as mineral rawmaterial procurement contracts
origin certificates mining compliance documents and smelting and processing certifications. It ensures
that mineral raw materials used in each batch of supplied products can be traced back to legally mined
sources with relevant documents kept for no less than the minimum retention period required by partners
and applicable laws and regulations. Meanwhile the Group undertakes to provide conflict mineral
investigation materials as required including but not limited to the latest RMI Conflict Minerals
Reporting Template (CMRT) Extended Mineral Reporting Template (EMRT) mineral source
116OPPEIN Home Group Inc.
certificates and supply chain due diligence reports for compliance review. It accepts regular and irregular
audits and spot checks (including document review and on-site verification) and actively provides
supporting documents to prevent potential conflict mineral risks in the supply chain.During the reporting period no use of conflict minerals was identified within the Group.Supplier Statement on Conflict Mineral Avoidance
4.2.5. Secondary Supplier Management
To further improve the supplier management system and ensure the quality and stability of material andfinished product supply from the source the Group has formulated the “Designated Secondary (andAbove) Supplier Management Regulations” to strengthen the management of group-designated
secondary (and above) suppliers."Group-designated secondary (and above) suppliers" refer to the general
term for suppliers designated by the Group based on operational and development needs which supply
materials or finished products to the Group’s first-tier suppliers (hereinafter referred to as "first-tier
suppliers") after processing and whose products or services are ultimately used by the Group. The Group
incorporates secondary suppliers into the Group’s supplier system management standardizes their
business processes business responsibilities and operational practices throughout the entire supply
process and requires all responsible entities to effectively perform their management responsibilities for
OPPEIN-designated secondary suppliers forming an effective quality control mechanism. The Group
will continuously build an efficient reliable and competitive supply chain continuously optimize the
117OPPEIN Home Group Inc.
supply chain ecosystem and strive to create a sound supply chain environment.Management Specifications for Group-Designated Secondary (and Above) Suppliers
The designation of secondary suppliers strictly adheres to the "competition
Principles and
principle". Each demand department designates secondary suppliers and initiates
Approval
the official document approval process with co-signatures from relevant
Requirements
department heads and final approval by the President’s Office.Secondary suppliers shall be incorporated into unified management under the
Business
supplier system in accordance with the "Procurement Development and Supplier
Compliance
Selection Management Regulations". Multi-party agreements shall be signed with
Management
suppliers that have business connections and secondary suppliers.Conduct annual capacity assessments and capacity execution supervision for
suppliers; release secondary supplier supply information through the "Group-
Supply
Designated Secondary Supplier Information Filing". In case of commercial
Assurance
disputes coordinated by the Group’s Supply Chain Management Center suppliers
Management
shall not arbitrarily stop supplying; replacement or counterfeiting of secondary
supplier products is strictly prohibited.Formulate a management mechanism for the coordinated management of
Quality
secondary supplier deliveries as well as penalty schemes for cases where
Assurance
secondary supplier supply anomalies cause the primary supplier to fail to fulfill its
Management
delivery obligations to the Group.Formulate a management mechanism for the coordinated management of
Delivery secondary supplier deliveries as well as penalty schemes for cases where
Management secondary supplier supply anomalies cause the primary supplier to fail to fulfill its
delivery obligations to the Group.
4.2.6. Training and Communication
The Group regularly conducts supplier training covering procurement expertise negotiation skills
supply chain management laws and regulations and other aspects to improve the overall professional
level of the team. Attaching great importance to the sound cooperative relationship with external
suppliers the Group actively carries out supplier training and exchange activities expecting all supplier
118OPPEIN Home Group Inc.
partners to work hand in hand with us to create a new chapter of "joint evolution win-win and shared
benefits".During the reporting period the Group conducted a total of 85 supplier training sessions benefiting 132
suppliers.
4.2.6.1. External Supplier Training and Communication
We carry out exchanges with suppliers through various forms including timely mutual visits with
suppliers global supplier conferences supplier quality review meetings various analysis meetings
seminars communication meetings and supplier counseling. We have established a sound
communication mechanism and supplier assistance channels to ensure that both parties work together
achieve mutual benefit and win-win results and conduct quality collaboration.External Supplier Seminars
4.2.6.2. Internal Supply Chain Staff Training
The Group continuously strengthens the professional training of internal supply chain staff. It invites
high-level external lecturers to conduct training based on the professional skills required for each position.A business knowledge sharing platform is established to enhance the review of team work cases and the
collection of industry information. The Group formulates a central work manual and posts work
requirements enabling new employees to quickly familiarize themselves with work processes and adapt
to their positions. It strictly controls the quality of incoming materials and improves the professional
skills and knowledge level of supply chain staff through training and tests for internal supply chain staff.Only those who pass the test are certified to work in their positions.
119OPPEIN Home Group Inc.
5. PRODUCTS AND SERVICES
OPPEIN adheres to the philosophy of "putting the consumer first and crafting home furnishings with the
precision of aircraft manufacturing." We implement a "Quality + Service" dual-drive strategy to build
distinctive core product competitiveness deepen service value through multi-channel strategies and
innovation to advance brand service models and integrate sustainable development into all aspects of
production and services. We increase Eco-friendly Commitment and healthy product ratios accelerate
the development of new smart home models and continuously improve product and service quality to
provide consumers with a more comfortable healthier and high-quality customized home experience.
5.1. Product Quality Upgrades
The Group has always regarded product quality as the foundation of our business and the customer
experience as the cornerstone of our corporate development. As consumer demands for the quality of
their home environments continue to rise we have deepened our focus on product quality. From our
smart manufacturing scale—which dominates Asia—to industry-leading AI-driven manufacturing
technology and national-level testing standards OPPEIN consistently leads the home furnishing industry
to new heights through efficient smart manufacturing and meticulous R&D.
5.1.1. Product Quality Assurance
We strictly adhere to the "Product Quality Law of the People's Republic of China" as well as applicable
quality-related laws regulations and standards in all regions where we operate. We are actively
implementing the Group's Quality Transformation 2.0 strategy initiating organizational reforms in
quality management launching a series of quality transformation projects establishing a product quality
management system and building an integrated quality assurance framework to continuously enhance
product quality and efficiency.
120OPPEIN Home Group Inc.
The Group Was Selected for China Quality Press's "Light of Quality · Strong Nation Project"
OPPEIN Whole-Home Appliances Wins the "Rock-Solid Award" at the 15th China Home
ApplianceMarketingAnnual Conference and the 2025 China HomeAppliance IndustryAwards
121OPPEIN Home Group Inc.
5.1.1.1. Quality Management System
We continuously refine our full-lifecycle quality management system which covers product R&D
production logistics and sales and constantly improve our quality management model. We have
established a "prevention-first" quality management objective to ensure that product quality and safety
are controlled throughout their entire lifecycle. We have established a comprehensive quality control
system featuring "triple quality checks during development + initial inspection at each process stage +
full AI visual inspection + IT-based error-proofing checks." By addressing multiple dimensions—
including "design quality" "raw material quality" "manufacturing process quality" "logistics quality"
and "installation quality"—we refine our quality control framework drive product quality innovation
and ensure that every product meets high standards and every service meets strict requirements.During the reporting period both the Group and its subsidiary Aowei Decorative Materials Co. Ltd.obtained dual certification for the ISO 9001 and GB/T 19001 quality management systems.IQNET Quality Management System CQC ISO 9001 and GB/T 19001 Quality
Certification Management System Certification
? Management Strategy Policies and Objectives
We actively implement the "Three Principles Five Standards and Two Enhancements" quality strategy
and have established the quality policy of "Striving for Excellence Building Trust Through Integrity and
Pursuing Perfection." With the improvement of quality and efficiency as our core objective we
continuously drive quality improvement initiatives and are committed to returning to the essence of
business operations through the continuous optimization of our products and services.
122OPPEIN Home Group Inc.
Quality Policy Quality Objectives Quality Strategy
? Striving for ? The pass rate for Three Principles Five Standards and Two Enhancements
Excellence. finished product ? Three Principles: Compliance with customer
? Earning shipment inspections requirements suitability of the management system and
Trust is no less than 95%; systematic quality improvement
through ? On-time delivery rate ? Five Standards: Information-based quality
Sincerity. for product orders of management automated quality testing professional staff
? Striving for no less than 92%; standardized underlying logic of quality management and
Perfection. ? Product quality institutionalized quality improvement mechanisms
reputation score of no ? Two Enhancements: Product quality enhancement
less than 8.0. and customer satisfaction enhancement
? Organizational and Institutional Safeguards
We have established a documented quality management system in accordance with the GB/T 19001-
2016/ISO 9001:2015 standard. We have formulated the following quality management regulations:
"Quality Management Regulations" "Quality Assessment Management Provisions" "Quality Integrity
Management Measures" and "Quality Veto Assessment Mechanism""Quality Breakthrough Award
Incentive Mechanism" "Key Negative Quality Incident Management Specifications" "Quality Incident
Management Specifications" and "Logistics Quality Audit Management Specifications" among other
quality management systems thereby forming a systematic framework covering "leadership planning
support operation performance evaluation and improvement." During the reporting period the Group
revised and improved the "Quality Manual" further refining the company's quality management system.The Group Quality Management Center as the highest governing body of the system is responsible for
the establishment maintenance review and improvement of the system. Through the "Quality
Management System Elements and Departmental Responsibilities Allocation Table" quality
responsibilities are clearly assigned to each business line production base and functional department
ensuring that "everyone is responsible for quality."
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Selected Quality Management Measures:
Quality performance evaluations quality breakthrough incentive awards quality veto evaluation mechanisms
quality integrity management measures quality performance data audits management of critical quality
incidents and quality incident management etc.Comprehensive Overview of the Group's Quality Evolution
R&D Quality Design Quality Raw Material Quality
Establish a research and Group-wide Inclusive Empowerment Transformation of the quality
development quality assurance System + Knowledge Academy; reliability testing system;
system based on the "whole- Design Process App + System Transformation of the new
home" concept. Interaction; product quality control system.Visual error-proofing.Process Quality Transportation Quality Installation Quality
Breakthroughs in automated Reforms to transportation models Precisely identify secondary
dimensional and edge including the innovative "shuttle residual issues and implement
inspection; system" and "escort" delivery models; tiered and categorized control
Deepened application of AI Large-scale delivery reform projects. measures to effectively curb the
vision inspection and the quality recurrence of persistent problems.cloud platform;
Case: CNAS-Accredited Professional Testing Laboratories
The Group has built national-level CNAS labs at five domestic bases covering 5900 square meters.Fitted with over 420 high-precision devices it delivers over 160 professional testing services. CNAS-
accredited since 2018 its results are recognized across 100+ regions. It strictly tests raw material
performance panel strength and product reliability offering authoritative technical support for full-
process quality control to ensure superior product quality.
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? Digital Empowerment of Quality Control
We are vigorously advancing the digital transformation of quality management by building a "Quality
Cloud" system. By integrating the underlying data across all quality modules we have achieved full
digitalization and visualization of data—from incoming supplier materials and in-process inspections to
post-market issues. Key quality indicators are displayed in real time via data dashboards providing
support for management decision-making. Through systematic initiatives—including organizational
restructuring and mechanism optimization IT infrastructure development the application of automated
inspection technologies and systems and the establishment of quality control systems for raw materials
and design—our overall quality reputation score reached 8.70 out of 10 representing a year-over-year
increase of 6.62%.Case: AI Visual Inspection
We leverage digital technologies to deeply empower quality control deploying AI vision inspection
systems on a large scale across critical processes such as panel dimensions edge banding quality hole
positioning accuracy and surface defects. Using deep learning algorithms we achieve millisecond-
level automatic judgment and sorting replacing traditional manual visual inspection. This
significantly improves the consistency and accuracy of inspections effectively intercepts minute
defects and raises defect identification accuracy to 0.1 millimeters. It reduces the risk of defective
products entering the market with a process product pass rate of 99.8% establishing a comprehensive
digital quality traceability and control barrier for smart manufacturing.Case: Material Quality Data Platform
We have built a material quality data platform designed to enable end-to-end traceability of materials.By implementing "one item one code" and integrating physical codes with logos the system can
automatically identify suppliers. This platform consolidates data across the entire supply chain—
including supplier onboarding incoming material inspection in-process feedback and post-market
issues—to enable automatic anomaly alerts and precise traceability. When quality issues arise the
system can quickly pinpoint the specific supplier batch or even individual board providing a data
foundation for accurate performance evaluation and driving supplier improvements thereby
effectively enhancing material quality reliability.
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? Quality Assessment and Improvement Mechanisms
We have established robust quality assessment and incentive-constraint mechanisms to ensure quality
requirements are fully implemented. We have formulated the "OPPEIN Group Quality Veto Assessment
Management Specifications" which incorporates outcome metrics such as "product quality reputation"
and "External Quality Failure Cost Rate" as well as process indicators such as "Number of Quality
Incidents" into the performance evaluations of key executives including Business Line General
Managers Base General Managers and Plant Managers; triggering severe criteria (such as primary
responsibility for GradeA/B quality incidents) can directly initiate the "dismissal" assessment procedure
reflecting the rigid principle of "quality veto."
At the same time we systematically identify risks in management systems customer audits and internal
audits on a regular basis and formulate preventive measures. Additionally through tools such as internal
audits management reviews non-conforming product control corrective actions and QCC (Quality
Control Circle) activities we have established a complete PDCA cycle.
5.1.1.2. Quality Culture Development
We actively promote the Group's key quality systems mechanisms and policies. We have formulated
the "OPPEIN Home Group Quality Talent Certification and Empowerment Management Guidelines"
established base-level quality committees and clarified the primary entities responsible for quality. We
uphold the spirit of our quality culture—"focus on core areas closely monitor top-tier performance delve
into the field benchmark against industry leaders and ensure full employee participation"—to ensure
that the quality management system is "interconnected at every stage with everyone taking
responsibility."
We have established a tiered and categorized quality culture training system covering all employees.Training content is closely aligned with practical operations and encompasses quality policies objectives
standard procedures tools and methods as well as case studies and lessons learned from incidents. This
ensures that employees not only master job-specific skills but also deeply understand the importance of
quality to both the company and themselves thereby continuously enhancing their professional
competence and fostering a quality management culture where "everyone takes responsibility."During
the reporting period the Group and its various bases conducted a total of 78 quality culture training
sessions reaching a cumulative total of 1570 participants with a total training duration of 48.5 hours.
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5.1.1.3. Product Recalls
We always prioritize consumer safety and adhering to the principle of "prevention first and rapid
response" have established a systematic mechanism for monitoring assessing and addressing product
safety risks. Through our existing quality management system customer complaint handling procedures
and crisis management guidelines we have formulated and refined raw material certification standards
and related quality control processes and systems. We have comprehensively strengthened supply chain
production and transportation management; conducted thorough qualification reviews of suppliers and
strict random inspections of raw materials; and implemented quality health and safety risk controls
throughout the entire product lifecycle to reduce product recall risks at the source. Furthermore in
accordance with the "OPPEIN Group Management System for Non-conformities and Corrective and
Preventive Actions" we have continuously refined our product recall contingency plans established
rapid response teams publicly released situation reports and updates on progress and promptly reviewed
and corrected our actions to minimize financial losses brand damage and erosion of consumer
confidence resulting from unforeseen incidents. Moving forward we will continue to optimize supplier
and raw material audits strengthen digital risk management and comprehensively enhance product
safety and environmental quality control to manufacture higher-quality products to even higher standards.During the reporting period we did not experience any product recalls resulting from product quality
health or safety issues.
5.1.2. Product Safety and Health
According to the "China Healthy Home Furnishings Consumer Perception Survey" over 85% of
consumers prioritize health considerations when purchasing home furnishings. Against the backdrop of
the national "Health for All" initiative we adhere to a people-centered philosophy and are committed to
creating healthy Eco-friendly Commitment and low-carbon home products. Our whole-home
customization products and their raw materials are manufactured in accordance with relevant standards
such as the "Technical Requirements for Environmental Labeling Products" creating an Eco-friendly
Commitment and healthy home environment for consumers.During the reporting period the Group's products obtained China Environmental Labeling Product
Certification. The environmental performance indicators of materials used in whole-home custom
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furniture products all meet relevant national standards with formaldehyde emission levels of panel
materials complying with the highly stringent European standards (E1 class).OPPEIN Leads the Development of the First Industry Standard for Postpartum Care
Centers
5.1.2.1. Chemical Safety
We deeply recognize that chemical safety is the cornerstone of product safety. employee well-being and
environmental protection. We strictly comply with Chinese and international chemical safety laws
including the "Regulations of the People's Republic of China on the Administration of Controlled
Chemicals" "Regulations on the Safety Management of Hazardous Chemicals" and relevant hazardous
chemical management and catalog standards. We have formulated group-specific chemical management
regulations and testing specifications and established a full-lifecycle chemical safety management
system covering R&D procurement production use and waste disposal. Through institutionalized
management and strict control we ensure all chemicals meet high safety health and environmental
standards providing customers with safe and reliable home furnishings.During the reporting period as a key drafting entity OPPEIN actively participated in developing three
national standards: GB 18580-2025 (formaldehyde emission limits for engineered wood) GB/T 44689-
2024 (odor classification/evaluation of engineered wood) and GB/T 44690-2024 (VOC emission
classification of wood-based panels). These standards cover formaldehyde emission odor evaluation and
VOC emission effectively improving the environmental performance and quality of home products.
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OPPEIN was thus awarded the "National Standard Drafting Unit" certificate by the National Technical
Committee for Standardization of Wood-Based Panels.GB 18580-2025 "Limits on Formaldehyde Emissions from Interior Decoration and
Renovation Materials—Wood-Based Panels and Products" as a mandatory national
standard for formaldehyde emission limits has for the first time raised the mandatory
formaldehyde emission limit for wood-based panel products to E0 grade (≤0.050 mg/m
3 ). The introduction of this stringent standard signifies a significant raising of the
environmental baseline for home products eliminating the potential threat to human
health posed by excessive formaldehyde emissions at the source and establishing a robust
health safeguard for consumers.GB/T 44689-2024 "Classification and Evaluation Methods for Odors in Wood-Based
Panels and Their Products" is the first national standard in the wood-based panel
industry to establish a scientific and comprehensive odor evaluation system and
standardized assessment framework. By doing so it provides quantifiable criteria for
what was previously a vague concept—home odors— and offers clear guidance for
improving product odor quality and promoting standardized market development.GB/T 44690-2024 "Classification of Volatile Organic Compound (VOC) Emissions
fromWood-Based Panels and Products" classifies VOC emissions into Class I and Class
II. By strictly controlling the sources of indoor air pollution at their source this standard
further enhances the comfort and safety of the home environment.? Chemical Management
We have established chemical management systems (including "Chemical Management Specifications"
and "Regulations on the Management of Hazardous Chemicals") to provide a unified standardized
framework for the procurement transportation storage use and disposal of hazardous chemicals across
the Group.We have strengthened inventory management at chemical use and storage sites implementing
intake/outbound or issuance records based on actual needs. All on-site hazardous chemicals are labeled
with Chinese labels and MSDS and we have compiled "Chemical Safety Data Sheets (SDS)". Personnel
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in hazardous chemical operation areas must wear required PPE; worksite toxic/harmful gas
concentrations are regularly monitored and relevant employees receive pre-employment on-the-job and
post-employment occupational health examinations to ensure their safety.Chemical Safety Management Standards and Acceptance Criteria
Content Specific Requirements Acceptance Method
Maintain records of regulatory
Regulatory requirements and a chemical inventory Review the chemical inventory records and the
Records including information on usage storage standard requirements for chemical management.and designated responsible persons.Post necessary safety risk notices Conduct on-site inspections to verify that visual
Visual MSDSs and relevant warning signage in chemical storage and usage areas as well
Management information at chemical storage and as basic information such as MSDS is complete and
usage sites. accurate.Develop specialized safety inspection Review the status of factory inspections and conduct
Special
checklists and conduct specialized at least one specialized safety inspection prior to
Inspections
safety inspections at regular intervals. acceptance.Check that plant training is carried out and that at
Develop specialized safety training least 1 special safety training is carried out before
Specialized
materials and conduct specialized safety acceptance;
Training
training at regular intervals. Ask authorized employees about their training and
knowledge of chemical safety risks
On-site storage should have explosion- Inspect chemical safety settings in the storage area
proof cabinets eyewash electrostatic and assess explosion-proof cabinet specification
On-site
apparatus fire sand leak-proof trays. settings;
Management
Also manage personnel PPE equipment Manage on-site chemical use including dispensing
and dispensing containers as required. containers and employee PPE wear.During the reporting period the Group conducted chemical safety training for on-site staff at hazardous
chemical facilities and mandated that personnel must pass an assessment before being allowed to work.This ensures that on-site workers fully understand the hazardous properties of chemicals and are
thoroughly familiar with the specific procedures and requirements for emergency response.
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? Chemical Procurement
We strictly manage chemical risks from the source of the supply chain establish a green procurement
policy and require all chemical suppliers to provide valid business or production licenses while their
transportation providers must possess the appropriate qualifications. Prior to procuring any new
chemicals the Supply Chain Department must request complete and compliant Chinese-language
MSDSs and safety labels from suppliers and submit them to the Group's EHS Management Department
for safety review. The review covers the standardization of MSDS preparation occupational health
requirements toxicity flammability and explosiveness and environmental compliance.In supply chain management we use the "Supplier ESG Evaluation and Onboarding Survey"
questionnaire to include "whether environmentally friendly materials are used" and "whether harmful
substances (such as formaldehyde and heavy metals) are restricted or banned" as key evaluation
indicators of a supplier's environmental performance thereby guiding and encouraging upstream
suppliers to transition toward more sustainable solutions.? Prohibition of Chemicals
We are committed to reducing or phasing out hazardous chemicals in our products and production
processes and we prohibit the use of explicitly banned chemicals and obsolete chemical production
processes. We strictly adhere to and proactively exceed national and international standards. Our
technical standards for raw material procurement explicitly restrict or prohibit the use of harmful
substances such as heavy metals (lead cadmium mercury hexavalent chromium) phthalates specific
halogenated organic compounds and azo dyes that can release carcinogenic aromatic amines. We strictly
require suppliers to provide a list of product ingredients and a self-declaration regarding the presence of
hazardous substances and to submit on time hazardous substance test reports for each product (such as
reports issued by authoritative third-party national testing institutions like SGS CTT and ITTC)
Material Safety Data Sheets (MSDS) product ingredient lists and environmental management change
confirmation letters; we conduct unscheduled spot checks on chemical indicators such as formaldehyde
TVOC and toluene through both internal laboratories and external third-party institutions; we utilize
information technology to monitor compliance throughout the entire process—including chemical and
supplier onboarding formulations and usage—to ensure that every product meets the requirements of
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the environmental quality management system and local laws and regulations regarding the prohibition
and restriction of chemicals.During the reporting period we did not experience any major incidents or fines related to chemicals nor
did we use any prohibited chemicals.Supply Chain Raw Material Procurement — Limits on Toxic and Hazardous Substances in
Particleboard
? Disclosure of Chemical Information
We proactively disclose our products' environmental ratings certification information (such as ENF
certification) and core environmental features (such as formaldehyde-free and formaldehyde-reducing
antibacterial properties) through product labels our official website and promotional materials. We also
include a table of limits for hazardous substances in our product manuals clearly showing consumers
the limits for hazardous substances in the decorative engineered wood panels coatings stone materials
adhesives and other raw and auxiliary materials used in our home furnishings.
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OPPEIN Kitchen Cabinets Raw Material Limits for Hazardous Substances
5.1.2.2. Committed to Customer Health and Well-being
We regard process safety as an inherent attribute of product design and a mandatory requirement for
production execution. Through systematic process design standardized operating procedures intelligent
process control and a safety culture that involves every employee we ensure that the production process
itself is safe stable and controllable. This eliminates product safety hazards caused by process defects
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or operational errors at the source ultimately delivering exquisitely crafted safe and reliable home
products to our customers.Guided by ergonomic principles we prioritize convenience user-friendliness and safety in product
design.We are committed to creating safe comfortable and warm home environments for our customers
infusing care into every design and striving for perfection in craftsmanship to achieve the highest quality.Our products are manufactured using world-class advanced equipment featuring excellent
environmental performance and durability. Our hinges and slides are of consistent quality and built to
last ensuring decades of worry-free use.Case: OPPEIN Doors & Windows Provides "Product Peace of Mind Insurance" for Its Entire
Product Line
OPPEINDoors &Windows has established a deep strategic partnership with China PingAn a Fortune
500 company to insure its entire range of door and window products under "Product Peace of Mind
Insurance." This ensures that every door and window order comes with peace of mind truly fulfilling
our value commitment: "Quality doors and windows with assurance—choose with confidence live
with peace of mind."
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Case: Elderly-Friendly Design
Based on in-depth "lifestyle research" we deeply integrate the "invisible care" and "proactive
adaptation" design philosophies into systematic age-friendly space planning and product
development. Our designs not only meet the elderly’s current physical needs but also anticipate
potential physical function changes with age. Through modular adjustable smart products and user-
friendly details we seamlessly integrate age-friendly features into the overall home aesthetic avoiding
the obtrusive "nursing home" feel and enabling seniors to enjoy their golden years in a familiar
respectful environment.Water dispenser + medication storage area for A double bed design minimizes the impact of
easy access to medication in emergencies. turning over or getting up at night on a partner's
sleep.Handrails are integrated into the home's overall Sliding door design reduces the risk of tripping.design such as on cabinetry and bedside cabinets.Automatic motion-sensing night light for Emergency call button at the bedside.nighttime bathroom visits.
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5.1.3. Enhancing product usability
We are committed to breaking physical economic and cognitive barriers in home furnishing consumption.Through systematic strategic planning and innovative practices we comprehensively enhance the
accessibility of our products and services. We ensure the accessibility of whole-home customization
products by means of product diversification affordable pricing localized service and efficient
production. This enables consumers—regardless of location budget or specific needs—to access "tailor-
made" home solutions and comprehensive attentive service at a reasonable cost further removing spatial
financial and resource constraints on custom home furnishings.
5.1.3.1. Brand Awareness and Trust
We increase long-term brand investment to continuously share our brand story and convey our "Love
Home" culture. Leveraging diversified social media platforms we forge close emotional bonds with
consumers strengthen brand recognition and make OPPEIN's whole-home philosophy widely
recognized by the public. We elevate brand visibility and influence via advertising campaigns KOL
cooperation and IP partnerships while presenting real customer cases to build consumer trust. We also
take the lead in setting industry benchmarks for safety environmental protection and health and provide
authoritative panel test reports to further boost consumer confidence. During the reporting period we
completed strategic transformation from a full-category home furnishings manufacturer to a full-scene
ecosystem service provider. The new brand IP "Love Home Season" was launched to further deepen our
forward-looking "scenario + product" strategy.During the reporting period we introduced a new IP character: "OPPEIN's Chief Space
Mood Officer—the little werewolf ‘PAI PAI'."
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During the reporting period the Group was honored as the "Initiating Unit of the Xinhua
NewsAgency China Top Brand TOPHome Furnishing Empowerment Program" at the 2024
Home Furnishing Industry High-Quality Development Conference.Case: OPPEIN Wins the 2025 "China Consumer Brand of the Year" Title
OPPEIN has been named a "2025 China Consumer Brand" by the MIIT affirming its national brand
influence innovation strength and core brand values. As a custom home furnishing leader we uphold
the mission of creating better home life winning wide household trust with high-quality integrated
solutions. The accolade further consolidates our industry leadership. We keep strengthening brand
credibility via smart Eco-friendly Commitment and user-oriented products advancing home
consumption upgrading and high-quality industrial development.
5.1.3.2. Product Diversity
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We consistently uphold our brand mission of "creating a better more comfortable and high-quality daily
life for the public" treating product diversity as the core fulcrum connecting user needs with social value.In our design we not only cover mainstream aesthetic styles but also delve deeply into personalized
scenario needs offering customized solutions ranging from child safety design and age-friendly care to
smart applications ensuring that every piece of furniture precisely adapts to the different life stages and
lifestyles of various families. To address the diverse changes in living spaces we have introduced
innovative solutions such as LDKB's open-concept integrated design "micro-adjustable structure" zones
and growth-oriented children's rooms. Through removable modules and scalable designs we ensure that
furniture functions "grow" in tandem with family needs effectively bridging the lifestyle gap between
younger generations and the elderly and transforming commercial activities into inclusive social
responsibility initiatives.Consumers are shifting from the pursuit of material abundance to a focus on spiritual resonance and
from selecting standardized products to building personalized living scenarios. We have taken the lead
in adopting the "scenario + product" approach as a breakthrough strategy implementing forward-looking
initiatives to establish a new "Chinese Family Happiness Index" evaluation system and redefine the value
framework for modern families. During the reporting period we innovatively launched the "Life Pi"
integrated home furnishings collection. Centered around four thematic scenarios—including "Pet-
Friendly Joy" and "Trendy Fun"—we provided personalized highly integrated spatial solutions tailored
to diverse user profiles such as singles tech enthusiasts and families with multiple children.OPPEIN Love Home Season "Pioneering a New Paradigm for Better Living" Launch
Ceremony
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5.1.3.3. Price Accessibility
Through flexible product portfolios and channel strategies we ensure that high-quality home solutions
are widely accessible at affordable prices. Our portfolio includes brands such as miform (high-end)
OPPEIN (mid-to-high-end) OPLONI (mass-market) OPPOLIA (affordable luxury) and BAUNIS
(whole-home customization) offering a clear and transparent pricing system to meet consumers' diverse
budgetary needs. In our product planning we clearly distinguish between different price tiers to ensure
comprehensive coverage ranging from budget-friendly options to high-end luxury. At the same time we
actively promote various affordable housing initiatives and have launched multiple green and inclusive
upgrades. By improving quality and efficiency internally we continuously introduce "high-quality yet
affordable" product policies offering significant savings to consumers and enabling more Chinese
families to enjoy a higher quality of life.
5.1.3.4. Accessibility of Products and Services
We are committed to building deeply integrated online and offline channels for product experiences and
services making it more convenient for consumers to access high-quality home living. Online we lower
the barrier to customer engagement through our official website e-commerce platforms and social media
providing convenient access to information and consultation. Offline we have established a global
network of over 7300 physical stores creating immersive lifestyle experience spaces where customers
can personally experience the quality of materials craftsmanship and service. Building on this
foundation we provide end-to-end services ranging from in-home measurements design and installation
to after-sales maintenance extending product delivery into systematic lifestyle solutions. During the
reporting period we continued to deepen the integrated development path of "manufacturing + modern
services" driving the company's strategic transformation from a traditional "product manufacturer" to an
"ecosystem service provider." By integrating and extending the industrial chain and enhancing the value
chain we systematically built an integrated home ecosystem covering the entire process from design to
manufacturing and service. During the reporting period we launched the "OPPEIN Smart Home Cloud"
AI large model capable of generating personalized customization solutions in seconds. TheAI-generated
3D models can synchronize in real time with supply chain data ensuring that design proposals precisely
match actual materials and dimensions—truly realizing "what you see is what you get"—and enhancing
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the accessibility of our products and services through technological innovation.
5.1.3.5. Supply Chain and Delivery Efficiency
With smart manufacturing at the core we continuously improve supply chain and delivery efficiency to
ensure that custom home furnishings reach every consumer faster. Leveraging the "All-Category Smart
Factory Cluster" built around five AI-powered production bases the Group can efficiently produce
500000 custom components daily—equivalent to one set of custom furniture every 20 seconds. Through
the deep integration of manufacturing platforms across 10 major living spaces and 10 product categories
we have fully interconnected design and production data compressing the custom delivery cycle to
within 7 days.In terms of logistics we have pioneered an innovative "whole-home" logistics model. By establishing a
supply network with a 500-kilometer service radius we can cover over 90% of cities nationwide within
8 hours. This approach reduces logistics costs while enabling rapid responses to the personalized needs
of regional markets. Our industry-first "centralized warehousing and distribution" model features 56
central warehouses strategically located around our five major production bases covering 26 provinces
autonomous regions and municipalities. Combined with our proprietary TIMS management system this
enables end-to-end intelligent control from warehousing to delivery ensuring professional and customer-
centric service for the "last mile" of custom delivery.To address the challenges of high delivery costs and limited coverage in rural and remote areas we have
implemented specialized measures. For example in our Guizhou project by optimizing transportation
routes and integrating local delivery resources we effectively resolved the long-distance transportation
challenges caused by insufficient logistics network coverage. This ensures that customers in remote areas
also enjoy convenient and efficient product delivery services fulfilling our deep commitment to product
accessibility through inclusive service.
5.1.3.6. After-Sales Service Guarantee
We are continuously refining our after-sales service system by establishing standardized end-to-end
service processes and a rapid response mechanism for consumer feedback. We have clearly defined
responsibilities and timelines for each stage to ensure that all customer complaints are addressed
promptly and resolved satisfactorily. Additionally we have launched the OPPEIN Golden Butler Service
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to enhance the value of products throughout their entire lifecycle. Through the "Service Summit Plan"
we are driving a comprehensive upgrade of our services and building a three-tier service ecosystem
comprising "Group Headquarters – Production Bases – Dealers." By leveraging design training after-
sales support and cost optimization systems we systematically empower dealers to enhance their
localized service capabilities ensuring that service standards are consistently and efficiently
implemented nationwide.
5.1.3.7. Policy and Industry Support
We actively participate in regional premium product exhibition platforms leveraging their advantages to
expand channels such as centralized corporate procurement and cross-border exports. At the same time
we continue to participate in or lead the formulation of industry environmental and product standards
promoting corporate standards to become industry standards. This not only fosters supply chain
collaboration but also enhances the accessibility and reliability of products across the entire industry
through high-standard leadership. Furthermore we actively align with national policy priorities
regarding expanding domestic demand rural revitalization inclusive elderly care and support for
vulnerable groups. We vigorously promote the "100 Cities 10000 Stores" initiative to expand into lower-
tier markets and increase R&D investment in "age-friendly" and "child-friendly" designs ensuring our
products and services benefit a broader range of social groups.
5.2. Technology R&D and Innovation
The Group continuously innovates across five key areas—technology products business models
management and services—adhering to the principle of "technology for good" and infusing smart
technologies with humanistic care. We focus our investments on production process innovation R&D
for energy conservation and carbon reduction digital manufacturing and smart manufacturing while
strengthening our independent R&D capabilities and employees' innovative potential. Our aim is to
establish a technological edge commercialize R&D achievements and maintain our leading position in
the home furnishings manufacturing industry. As of the end of the reporting period we operate a CNAS-
accredited laboratory and have been recognized as a National Industrial Design Center recipient of the
Guangdong Provincial Government Quality Award a Guangzhou High-Level Enterprise Research
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Institute a Postdoctoral Research Station and a High-Tech Enterprise. These accolades ensure that our
professional expertise safeguards product quality.National Industrial Design Center High-Tech Enterprise Certificate
OPPEIN CNAS Laboratory
5.2.1. R&D Plans and Objectives
The Group places high importance on R&D adhering to the principle of driving development through
innovation. We continuously engage in independent R&D and introduce new products promoting
technological and industrial transformation and upgrading in the custom home furnishings industry while
accelerating the development of new productive forces. We remain committed to innovation-driven
growth refining our market-oriented product R&D management model and strengthening our
foundational R&D platforms. With a primary focus on advanced manufacturing we are enhancing our
technological R&D and reserves to create new products that lead industry trends and shape its future
direction thereby fostering new growth momentum. Looking ahead OPPEIN will continue to increase
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investment in innovation to consolidate its leading position in the custom home furnishings sector.Five Major Future R&D Initiatives
* Guided by the "whole-home" principle we will shift toward innovative R&D models for integrated whole-
home spatial solutions to continuously enhance product competitiveness
* By integrating the stability of classic products with the rapid iteration capabilities of trendy products we
will enhance market adaptability while meeting consumers' pursuit of personalization and diversity
* We will Strengthen the management and application of product data to improve the efficiency of targeted
development
* We will implement cross-space color management for the "whole-home" concept enabling joint and
synchronized R&D of materials in the same color across product categories to enhance the overall
coherence of whole-home products
* By integrating the sales system with the product management system we will bring backend product
management functions to the frontend thereby enhancing both the frontend user experience and the
efficiency of backend data management
5.2.2. R&D System and Structure
We have established a strategy-guided R&D management system with clear processes and efficient
collaboration to ensure targeted and effective innovation. To adapt to the shift from single-product R&D
to integrated home solutions the Group has restructured and upgraded its Integrated Product
Development (IPD) process establishing a standardized system for R&D project initiation tracking and
closure. Each year we systematically plan multi-field R&D projects (manufacturing processes R&D
IT equipment) clearly defining investment in budget personnel materials and equipment and
rigorously recording research outcome commercialization.Our R&D team totals 1867 professionals accounting for 10.44% of all employees including 44master’s
and 1031 bachelor’s degree holders. To drive innovation we adopt a market-oriented R&D model and
roll out systematic incentive policies covering piece-rate compensation design team rewards and design
award regulations. We have also updated incentives for R&D and design staff set up innovation project
awards and refined incentive standards for different product lines. Combining material and non-material
rewards the talent incentive system fully stimulates employees’ innovative potential.During the reporting period the Group completed the transition of its IPD process framework from
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version 1.0 to 2.0 established a professional management team and established a tiered system
comprising "1+6+30+1 set of regulations and 7 processes." Furthermore by formulating the "New
Product Planning ReviewManagement Specifications" "Scheme Design Management Regulations" and
"New Product Scheme Design Review Management Specifications" as well as revising multiple
management regulations the Group embedded a structured review mechanism throughout the entire
R&D process. This significantly reduced development risks and enhanced R&D responsiveness and
cross-departmental collaboration efficiency.Total R&D Team Size people 1867
Percentage of R&D personnel relative to total company headcount % 10.44
Doctorate and above People 0
Master's People 44
By educational level
Bachelor's People 1031
Bachelor's degree or below People 792
Male People 1320
By gender
Female People 547
Under 30 (excluding 30) People 363
By age 30–50 years old (including 30 excluding 50) People 1477
50 and older People 27
5.2.3. R&D Investment and Achievements
We place great emphasis on building our R&D team and cultivating high-caliber talent. We have
established a home furnishings R&D center at the Group level as well as product planning and R&D
departments within each business division. Additionally we have set up an R&D and design center in
Milan Italy. We actively promote external exchanges and industry-academia-research collaboration
engage in in-depth university-enterprise partnerships and talent exchanges with specialized institutions
and drive technological innovation and scientific advancement in the home furnishings industry.Driven by market demand we upgrade products from single-function offerings to integrated smart and
health-oriented solutions. Adopting agile development we iterate rapidly and adjust flexibly to align
with market needs optimize production and elevate user experience. Centering on user demands we
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shorten the lengthy cycles of traditional home furnishing design and production realizing efficient
delivery via modularization digitalization and collaborative workflows. To tackle industry pain points
and meet consumption upgrading needs we launch targeted R&D projects: in materials we develop
long-lasting antibacterial & mildew-proof and high-durability stain-resistant countertop technologies; in
structural design we research concealed connection and lightweight ultra-thin drawer technologies for
kitchen and bathroom cabinetry; in smart technology we explore AI-powered personalized design &
smart manufacturing software and smart display-integrated control knobs.During the reporting period the Group's R&D investment totaled 909million yuan accounting for 5.27%
of operating revenue; cumulative R&D investment over the past five years reached 5.089 billion yuan
placing us at the forefront of the industry; we launched 84 new R&D projects and successfully brought
17 new product lines to market.
Case: AI Visual Color Difference Detection Platform
To address the industry-wide challenges of low consistency and efficiency in manual visual
inspection we independently developed and launched an AI-powered visual color difference detection
platform. Based on the international CIE2000 color difference algorithm this platform enables
objective digital inspection of non-solid colors and complex textured patterns. The platform has
collected data on over 600 fabric patterns and materials and based on this we developed a cloud-
based document duplication check function. This has increased the efficiency of new product
duplication checks by over 50% fundamentally reducing internal and external color discrepancies
caused by inconsistent standards.
5.2.4. Patents and Intellectual Property
We have long prioritized the protection of proprietary intellectual property including patents and original
designs. We have formulated the "Intellectual Property Management Regulations" and established a
Group-wide intellectual property management system. This system provides end-to-end management of
the identification maintenance utilization and protection of intellectual property rights—such as patents
and software copyrights—to strengthen risk control prevent the loss of the Group's intangible assets and
simultaneously incentivize employees' innovation while enhancing the Group's core competitiveness.We generally follow the management framework of "rights confirmation—rights maintenance—rights
protection—rights utilization" to implement strict unified management of intellectual property
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ownership confidentiality data and infringement risks. We have also established rigorous business
processes for the application maintenance protection and utilization of patents trademarks and
copyrights. Furthermore to encourage the research and creative capabilities of Group employees and
incentivize the formalization and protection of intangible technologies resulting from inventions and
innovations we have established patent incentive principles and standards. We reward patent inventors
based on factors such as the status of patent protection technological stability potential value and
implementation benefits.During the reporting period the Group filed a total of 51 patent applications including 11 invention
patents 20 utility model patents and 20 design patents. As of the end of the reporting period the Group
and its controlled subsidiaries had accumulated 858 patents comprising 81 valid invention patents 442
utility model patents and 331 design patents; they also held a cumulative total of 138 computer software
copyrights.
5.2.5. Digitalization and Smart Manufacturing
We view digitalization and smart manufacturing as the core engines driving industrial upgrading and
building core competitiveness. Starting with the "OPPEIN Manufacturing 2025" strategy we have
systematically integrated new-generation information technologies—such as the internet big data and
artificial intelligence—with manufacturing technologies to establish a digital management and intelligent
production system covering the entire value chain from "design to production logistics and service."This
not only enables efficient collaboration for large-scale personalized customization but also leads the
home furnishing manufacturing industry in a paradigm shift from "experience-driven" to "data-driven"
delivering an exceptional experience to customers characterized by "what you see is what you get what
you feel is what you want design is manufacturing and manufacturing is service."
5.2.5.1. Digital System Synergy
Through independent R&D and integrated innovation we have broken down data silos across the entire
business chain—from the marketing front end to the production back end—achieving end-to-end digital
collaboration and transparent management. We have built a deeply integrated software ecosystem
centered on the design-end "Smart Home Cloud" marketing and order management "MTDS/MSCS"
manufacturing execution and planning "XMES/MPCS" intelligent logistics "TIMS" and a data middle
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platform. This ecosystem enables the seamless flow and unified coordination of data regarding customer
needs design solutions production instructions material information and logistics status forming a
complete digital closed-loop.Relying on the Group’s unified digital platform the AI production scheduling system dynamically
optimizes task allocation by factoring in order urgency process complexity equipment capacity raw
material inventory and regional logistics costs. For instance whole-home customization orders are
automatically split into kitchen cabinets wardrobes wooden doors and other categories then
intelligently assigned to optimal production bases for parallel manufacturing. When a base reaches full
capacity orders are automatically diverted to keep overall delivery cycles stable and efficient.Digital & Intelligent OPPEIN
Case: Full Implementation of the OPLink Smart Collaborative Office System
In April 2025 OPPEIN partnered with Feishu to develop and fully launch its proprietary smart
collaborative office system OPLink. Through resource integration data-driven decision-making and
the application of AI technology the system has achieved a significant leap in organizational
collaboration efficiency injecting strong momentum into the company's digital transformation and
setting a new benchmark for digital upgrading in the industry.
5.2.5.2. Smart Manufacturing Upgrade
We focus on smart manufacturing to address industry production and logistics pain points. By deeply
integrating automated equipment IoT and AI into production we have built leading flexible intelligent
manufacturing capabilities to drive sustainable development. We have launched lights-out production
zones in home furnishing workshops enabling unattended automated continuous operation at night.
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Equipped with laser-guided AGVs intelligent warehouses and RGVs we have established an unmanned
logistics system realizing fully automated precise material distribution from warehouse to workstation.This greatly cuts manual handling and idle time.Intelligent Decision-Making
By building a central digital command center we enable full operational transparency
across five major domestic bases. It displays real-time core indicators including order
completion rate equipment utilization and quality pass rate with drill-down analysis into
End-to-End specific production processes. Embedded with an intelligent early warning mechanism the
Visibility system delivers round-the-clock monitoring and proactive alerts for equipment faults and
inventory risks. Managers can locate root causes within 10 minutes cutting unplanned
downtime and delivery delays shifting management from passive response to proactive
prevention.To tackle scheduling complexities from large-scale personalized customization the Group
developed an in-house AI intelligent scheduling system. It incorporates multi-dimensional
constraints including order urgency process complexity cross-site equipment load
material inventory and logistics costs adopting operational research algorithms to generate
AI-Assisted
globally optimal production plans. Amid urgent order insertions the system dynamically
Decision-Making
applies flexible scheduling such as off-peak equipment arrangement and parallel
processing. It guarantees timely delivery of priority orders while sustaining overall
production efficiency striking an effective balance between customized demands and mass
production.Redefining workshop role allocation under human-machine collaboration frontline staff
shift from repetitive operation to monitoring and decision-making. They remotely view
Redefining operational parameters via terminals and make real-time fine adjustments to keep
Human-Machine equipment operating optimally. Employees also take on cross-process quality feedback
Roles duties directly feeding production issues such as design and process deviations to the R&D
team through digital systems. This forms a closed-loop improvement mechanism linking
production and design fundamentally lifting product quality and overall spatial solution
compatibility.
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Case: OPPEIN AI Smart Factory
We remain committed to continuously advancing our smart manufacturing capabilities to establish
benchmark factories that deliver high quality low costs and flexibility. Across our five smart
manufacturing bases in QingyuanWuxi Chengdu Tianjin andWuhan we extensively deploy world-
class high-end equipment. Building on this foundation we achieve deep integration through flexible
production systems and leverage diverse technologies—including robotics AI and computer vision—
to drive automation across the full range of home furnishing products realizing automated assembly
lines where "machines direct machines."From intelligent material cutting flexible edge banding and
intelligent drilling to automated sorting and packaging key processes have achieved a high degree of
automation ensuring precision and efficiency in the production of non-standard customized products.
5.2.5.3. Digital R&D Empowerment
By integrating AI technology we have comprehensively upgraded our digital operations and intelligent
processes to provide customers with customized home solutions that embody "what you see is what you
get what you feel is what you want design is manufacturing and manufacturing is service."The Group
has fully embraced artificial intelligence exploring its application across design production and
customer service. On the design side we utilize AI to generate diverse design drawings provide
intelligent recommendations and optimize structures; on the production side we deepen the application
of technologies such as AI visual inspection; and on the customer side we have developed intelligent AI
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systems to address high-frequency inquiries and plan to introduce AI-powered follow-ups thereby
profoundly reshaping the front-end experience of product R&D and customer service.During the reporting period the "Smart Home Cloud 2.0" system was fully rolled out with data quality
steadily improving; the Group's core design software was comprehensively upgraded to the "Smart Home
Cloud" integrated home design platform.Case: AI-Empowered Design Reshaping the Home Furnishing Experience
OPPEIN’s "Smart Home Cloud AI Large Model" design assistant reshapes home design paradigms. It
generates multi-style renderings instantly supports personalized customization and delivers a real-
time visual experience. Seamlessly linking design data with manufacturing it forms an AI closed loop
of design-manufacturing-service. The innovation boosts user engagement and satisfaction offering a
benchmark model for industrial intelligent upgrading.Case: AI Customer Service and Smart Delivery
We have deeply explored the innovative application of AI and IoT technologies in customer service
and delivery operations. During the reporting period the Group launched an AI customer service tool
to provide dealers with 24/7 intelligent support covering high-frequency scenarios such as order status
inquiries and policy consultations. The system handles over 100 inquiries daily with a first-response
success rate of 93% effectively improving backend response efficiency and dealer satisfaction.Simultaneously we utilize IoT technology to implement intelligent monitoring of in-transit goods
enabling real-time visual tracking of logistics status. This allows for early warnings and rapid
responses to anomalies further enhancing the transparency and reliability of the delivery process. By
leveraging technology to empower the entire service chain we are progressively building a more
efficient and intelligent customer delivery experience.
5.2.6. Adhering to Scientific and Ethical Standards
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We place a high priority on technology ethics management. Current technology ethics issues primarily
concern user information lifestyle habits and preferences collected in the fields of AI customer service
and intelligent IoT whole-home smart terminals. We strictly comply with laws and regulations such as
the "Interim Measures for the Administration of Generative Artificial Intelligence Services" and the
"Measures for the Review of Scientific and Technological Ethics (Trial)" and in accordance with the
requirements of the "Cybersecurity Law of the People's Republic of China" the "Data Security Law of
the People's Republic of China" and the "Personal Information Protection Law of the People's Republic
of China" we have established a comprehensive information security management system architecture.Concurrently we have built an adaptive closed-loop security protection system to comprehensively
safeguard the security of our network infrastructure and data assets.We adhere to the "principle of minimal necessity" clearly defining users' right to know and authorization
mechanisms to prevent excessive commercialization of data or its use for purposes beyond those agreed
upon. We also encrypt sensitive data related to home environments. We standardize transparency
requirements for AI algorithms and prohibit the generation of false misleading or discriminatory content.Furthermore to prevent excessive reliance on smart devices that could undermine users' control over
their home environments we have designed a "human-centered" interface that preserves manual control
functions. We have also embedded the principle of "explainability" into our technical design to help users
understand the system's operational logic.
5.3. Protection of Customer Rights
Our Group consistently places customer rights at the core of our corporate development committed to
building a customer-centric transparent secure and trustworthy service ecosystem. We strictly comply
with relevant laws and regulations including the Civil Code of the People's Republic of China the
Product Quality Law of the People's Republic of China and the Consumer Rights Protection Law of the
People's Republic of China. Through a systematic management framework efficient feedback handling
proactive measures to enhance satisfaction and robust information security defenses we
comprehensively protect customers' legitimate rights and interests provide high-quality services to
consumers and enhance the Group's brand reputation and customer service satisfaction.
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5.3.1. Customer Management System and Policies
We have established a multi-dimensional standardized customer management system that spans the
Group headquarters business divisions production bases and end-user dealers. This system aims to
transform the "customer-centric" philosophy into executable measurable and optimizable operational
practices through systematic rules processes and tools. This framework not only safeguards customer
rights but also serves as the core engine driving brand reputation and business growth.
5.3.1.1. Closed-Loop Management of Regulations
We have established a set of management regulations centered on the "Customer Complaint and After-
Sales Service Management Regulations" the "Customer Satisfaction Survey Management Regulations"
and the "Quality Complaint Handling and Improvement Implementation Standards." These regulations
clearly define the division of responsibilities among multi-tiered entities—including the Group Customer
Service Center the internal marketing departments of each business division and dealers—and detail a
comprehensive set of operational standards ranging from service commitments and channel disclosures
to work order processing procedures and time-limit standards. Consequently the Group has established
a closed-loop management system featuring clear delineation of authority and responsibility as well as
cross-departmental collaboration following the process of "Receipt – Dispatch – Resolution – Follow-
up – Rectification – Evaluation." This ensures that customer requests are handled in accordance with
established procedures and that accountability is maintained at every stage.
5.3.1.2. Empowered by Digital Tools
The management system leverages robust digital tools to achieve visualized service processes and precise
control. With the "OPPEIN Home Group" mini-program and the intelligent omnichannel customer
service work order system as core platforms we have integrated front-end customer touchpoints with
back-end business systems. The work order system enables centralized reception intelligent
categorization automatic assignment and end-to-end status tracking of customer requests with
automatic timing and alert functions at key stages. Simultaneously we have actively integrated AI
technology launching "AI Customer Service" to provide 24/7 intelligent responses. We have also built
an "AI Q&A Platform for Home Furnishing Materials Craftsmanship and Products" leveraging
knowledge bases and AI to empower frontline service staff significantly enhancing service response
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efficiency and the professionalism of problem-solving.
5.3.1.3. Performance Evaluation and Oversight Mechanism
To ensure the effective implementation and continuous optimization of management systems we have
established a rigorous quantitative evaluation and supervision mechanism. Key metrics—including
service timeliness resolution satisfaction rates and timely work order response rates—are assessed on a
real-time and quarterly basis. Evaluation results are directly linked to the performance of relevant
departments and dealers creating a "reward and punishment" incentive mechanism. The Group has
strengthened its oversight of dealer service quality. Through measures such as data disclosure
disciplinary actions for violations and rewards for excellence we drive continuous improvement in
service awareness and standards at the point of sale. Additionally the Group has established a monthly
customer complaint data analysis and reporting system. By identifying service weaknesses through data
insights we issue rectification notices to responsible departments driving root-cause improvements from
design and production through to service delivery thereby achieving self-optimization of the
management system.
5.3.1.4. Service Strategy Upgrade
The value of the customer management system has transcended the level of basic support and risen to
the strategic level of the Group. We have incorporated the development of our service system into our
"TOP 3 Strategic Priorities" and are driving this initiative from the top down by adhering to the principles
of prioritizing resources performance evaluations and innovation. Through a dual-engine approach of
"mechanism-driven" and "digitally-supported" initiatives we have not only successfully established a
virtuous cycle of "product strength—service strength—reputation strength" but have also through
systematic service transformation practices provided a replicable "OPPEIN Model" to address the
industry-wide challenges of "high complaint rates and low satisfaction levels" in the home furnishing
sector. Differentiation in service quality is becoming a solid competitive barrier for the Group in the era
of integrated home solutions.
5.3.2. Customer Feedback Handling
Guided by the philosophy of "customer first dedicated service" we have actively reformed our after-
sales service system standardized the Group's service complaint and crisis management processes and
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established a diversified rapid-response and professional closed-loop feedback handling mechanism.We have implemented a four-step process for handling customer complaints (after-sales service +
complaints): "Stage I: Intake—Stage II: Resolution—Stage III: Follow-up—Stage IV: Rectification." By
ensuring unobstructed channels for customer feedback we are committed to transforming every
customer interaction into an opportunity to build trust. During the reporting period the Group's complaint
resolution satisfaction rate increased by 2% year-over-year.
5.3.2.1. Diversified Channels and Rapid Response
The Group has launched a variety of convenient channels including a 400 hotline official website
WeChat service account and email to ensure unobstructed customer feedback channels. The customer
service center operates 24/7 and commits to a 30-minute response time within urban areas for
emergencies such as water ingress into delivery vehicles or spontaneous glass breakage. During the
Spring Festival the Group launched the "Spring Festival Worry-Free" special service to ensure that
customer concerns receive timely attention.
5.3.2.2. "Consultative Service" and Professional Closed-Loop Management
To move beyond traditional response models we have implemented a "consultative service" philosophy.Customer service representatives leverage core competencies—such as emotional empathy guided
listening and in-depth needs assessment—to become experts in resolving customer issues. Throughout
the process we prioritize timely updates on coordination progress and provide customized solutions
while strictly adhering to tiered response standards like "1-24-48" to ensure issues are resolved efficiently
and professionally.
5.3.2.3. Data-Driven Root Cause Improvement
The Group has established a comprehensive after-sales service database that fully documents reported
issues and their resolution processes. Through monthly data analysis we precisely identify service
weaknesses and recurring issues and issue rectification notices to the responsible departments
accordingly. This drives root-cause improvements spanning design manufacturing processes and
service delivery creating a virtuous cycle of "resolution-analysis-improvement."
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Rapid Response System for Consumer Feedback
Customer Feedback Channels
* Group 400 Hotline: 400-884-1868
* Group Website: www.OPPEIN.com
* Email: op@OPPEIN.com
* WeChat Official Account: OPPEIN Customer Service; WeChat Mini Program: OPPEIN Group
* MailingAddress: OPPEIN Group Customer Service Center No. 366 Guanghua 3rd Road Jianggao
Town Baiyun District Guangzhou Postal Code: 510450
* Retail stores must inform customers of the Group's service channels including but not limited to
the following methods: purchase contracts store signage and in-store service boards
5.3.3. Enhancing Customer Satisfaction
Centered on the four key principles of "Proactive Service Proactive Care Professional Empowerment
and Experience Optimization" we have built a comprehensive customer service ecosystem covering the
entire lifecycle—from pre-sales to in-sales and after-sales—to continuously strengthen customer trust
and brand loyalty. We have deepened our proactive service initiatives by conducting centralized follow-
ups with long-term customers whose installations are over 10 years old. We also regularly organize
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activities such as "Community Zero-Distance Service Days" to proactively provide free professional
technical maintenance services—including door panel adjustments and drain line cleaning—to these
customers. By extending our service scope from the home to the community and gathering potential
needs through face-to-face communication we continue to strengthen customer relationships.We have continuously strengthened professional skills training for our after-sales and customer service
teams systematically improving communication skills and professional competence. During the
reporting period we conducted a total of 27 specialized training sessions on customer response with a
total duration of 60 hours and reaching 675 participants ensuring that every service staff member
possesses the ability to respond quickly and resolve issues accurately. The Group's consumer evaluation
trends are positive with a basic service satisfaction score of 8.59 and a product quality reputation score
of 8.79.Five Major Initiatives to Strengthen Service Quality Control
* Digital Service Mechanism: Consumers can track work order progress in real time via mini-programs
establishing a fully closed-loop management system of "complaint-response-resolution-follow-up";
* Headquarters Rapid Response Mechanism: For disputes involving dealers OPPEIN Headquarters provides
rapid subsidies through the "Brand Fund" achieving a "5-day resolution for small-scale disputes" and
converting customer satisfaction into brand loyalty;
* "Golden Butler" Service Upgrade: In 2024 OPPEIN launched an upgraded "Golden Butler" service and
made eight commitments: light home inspection by the butler; 24-hour rendering delivery; six "1"
installation standards; Golden Butler final inspection; "Golden Nanny" maintenance; blueprint archiving;
express after-sales service; and worry-free service;
* Initiating "Face-to-Face" Quality Dialogue: Inviting dealers and consumers to participate in pain point
surveys to further optimize processes such as edge sealing and color variation control as well as address
product-related issues;
* Strengthening Quality Traceability: The Group implemented full-lifecycle traceability for every product via
the MES system resulting in a 13.71% decrease in quality-related complaints.
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Case: Warranty System Upgrade
OPPEIN Doors & Windows prioritizes after-sales customer protection.Adhering to the philosophy “a brand has power and we dare to guaranteequality” it has upgraded its warranty system to set a new industry service
benchmark. The upgrade delivers three breakthroughs: extended warranty
terms wider coverage and faster response. It fully covers core door and
window parts including aluminum profiles glass sealing strips thermal
breaks hardware and electronic components safeguarding users
throughout the product lifecycle. Upholding listed company-grade quality
standards and accountability we have turned vague verbal commitments
into enforceable traceable service norms translating product confidence
into reliable contractual guarantees for consumers.Case: "Service Summit Plan"
OPPEIN launched the "Service Summit Plan" on March 15 2025 marking a strategic leap from
service leadership to service innovation. Centered on "Integrated Design + Scenario-Based Spaces"
the Group advances systematic R&D in product function style and materials. With stable pricing it
iterates product systems via pain-point insight and value innovation. Focusing on design supply chain
production logistics and installation it implements full-process quality control and promotes face-to-
face quality communication to elevate customer experience.Technologically the Group integrates AI and IoT across all service scenarios. By covering AI visual
inspection intelligent customer service real-time logistics monitoring and installation quality
tracking the Group boosts service standardization and accuracy through innovation. A three-tier
service network of Headquarters Bases and Local Offices has been established. After-sales centers at
five major bases were upgraded to build localized quality support and streamline one-stop after-sales
resolution. By empowering dealers with design training and system support every service touchpoint
fosters lasting customer satisfaction.
5.3.4. Information Security and Privacy Protection
We place a high priority on data and privacy security. Adhering to the principles of "prevention first
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unified standards standardized management and comprehensive control" we have established a
comprehensive internal information security management system organizational structure procedures
and policies. We have set up a dedicated security operations team and continue to invest in building
network and data security capabilities. While complying with regulatory requirements we uphold the
"Development Security Operations" (DevSecOps) security philosophy standardize data security
management provide users with secure stable and reliable products and services ensure business
system continuity and comprehensively protect the information security of both the Group and our
customers. At the same time we conduct regular information security education and technical training
for employees to foster a strong culture of information security.During the reporting period the Group did not experience any information leakage incidents and none
of its business-related mobile applications were publicly notified or removed from app stores by
national regulatory authorities.
5.3.4.1. Information Security Management System
As the Group advances toward intelligent and digital development we place increasing emphasis on
network and information security. To strengthen the protection of the Group's critical data and
information assets and in accordance with the requirements of relevant laws and regulations such as the
Personal Information Protection Law of the People's Republic of China the Cybersecurity Law of the
People's Republic of China and the Data Security Law of the People's Republic of China we have
formulated the "Information Security Management Regulations" the "Data Security Management
Specifications" the "Anti-Virus Management Specifications" and the "Trade Secret Management
Regulations." We have established and maintained data security policies and standards thereby forming
the OPPEIN Information Security Management System. During the reporting period we implemented a
public cloud security project. To ensure the secure and stable operation of the Group's information
systems we newly formulated relevant regulations such as the "Public Cloud Management
Specifications" "Information System Usage Management Specifications" "K3 System Customer
Management Specifications" and "Terminal Marketing System Material Maintenance Management
Specifications." During the reporting period the Group's total investment in information security system
development amounted to RMB 1.9402 million.
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Information Security Governance Organizational Structure
? Data Compliance Management
We have established a robust data compliance management organizational system and a routine
communication and collaboration mechanism. We have clearly defined the entities responsible for data
compliance made adherence to data compliance requirements and fulfillment of data compliance
obligations a condition of employment conducted necessary background checks on employees in key
data processing positions and clarified the data compliance requirements they must adhere to and the
obligations they must fulfill through the signing of compliance commitment letters and confidentiality
agreements. This strengthens data compliance management promotes the compliant use of data and
comprehensively safeguards the Group's data security.? Privacy Protection
We strictly regulate the content of our apps (such as the OPPEIN Smart Home app and the Hailie Niao
app) and mini-programs regarding user privacy policies and the collection and use of personal
information. We regularly conduct privacy impact assessments and app privacy compliance audits for
relevant business scenarios and promptly address any issues identified. We fully respect and protect
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users' rights to know choose and control their personal information. We describe relevant policies and
measures regarding the collection management and protection of personal information within our apps
and mini-programs. and obtain user consent before collecting or using their information. Additionally
we employ strict data access controls multi-factor authentication data anonymization and encrypted
transmission to comprehensively protect personal information.? Emergency Response Plan
We have established emergency response plans and mechanisms such as the "Information Security
Incident Emergency Management Specifications" and have set up an organizational structure for
information security incident response. In the event of a data breach or security risk we will immediately
take remedial measures and follow up promptly to minimize the losses and impact caused by the incident.Furthermore we conduct vulnerability management in accordance with the "OPPEIN Group Information
Security Vulnerability Management Specifications." Based on the vulnerability management lifecycle
and tailored to the Group's specific circumstances we have established information security vulnerability
management processes. We also conduct penetration testing to assess the security of network systems by
simulating malicious attacks.Information Security Emergency Response Organizational Structure
? Partner Oversight
We place great importance on our partners' management of privacy and trade secrets. We incorporate
"Confidentiality Clauses" into the procurement contracts or cooperation agreements signed with them
requiring suppliers distributors and other partners to strictly fulfill relevant confidentiality commitments
to protect product confidential information and user privacy data. We also incorporate the information
security and privacy protection policies and systems of key stakeholders into our overall risk
management planning designating them as key focus areas for internal and external information security
audits. We conduct annual specialized reviews of these audits to ensure that information and privacy
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security are effectively managed.
5.3.4.2. Information Security Training
All employees are required to complete information security training upon joining the company.Additionally we organize information security and privacy protection training and awareness sessions
on an ad hoc basis throughout the year. These sessions are delivered through centralized on-site training
email distribution online learning via the "E-Orange Academy" and desktop notifications on work
computers. The content covers the dissemination of national information security laws and regulations
fostering cybersecurity awareness office email security safe software downloads computer virus
protection and prevention of telecommunications fraud. The training targets all current and new
employees and specialized training is regularly provided for personnel engaged in information security-
related work. During the reporting period the Group conducted two cybersecurity awareness campaigns
and two cybersecurity training sessions reaching over 14364 employees. The employee training
coverage rate reached 80.70% comprehensively enhancing employees' cybersecurity awareness and skill
levels.The Group Cybersecurity Learning Week Activities
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6. EMPLOYEES AND SOCIETY
OPPEIN has always advocated the concept of "Humanistic Love for Home" — extending care from
individual families to society at large and from personal affection to greater compassion. Internally we
emphasize that " talent is the most valuable asset for enterprise development " fully respect and protect
the basic rights and interests of every employee create a safe and healthy working environment and at
the same time fully stimulate employees' potential. We enrich employees' lives through diverse activities
and continuously enhance their sense of gain happiness security and satisfaction. Externally we focus
on fulfilling corporate social responsibility increase support for rural revitalization focus on public
welfare causes such as poverty alleviation and student assistance intellectual enlightenment education
for disabled children and red culture inheritance education. We constantly strengthen the public's brand
recognition of OPPEIN's "Love Home Culture" and high recognition of its social responsibility
embracing and giving back to society with the warmth of the enterprise as a responsible corporate citizen.
6.1. Employee Responsibility
The Group fully protects the legitimate rights and interests of employees builds a fair impartial and open
career development platform continuously improves the salary and welfare system and performance
appraisal system carries out employee stock ownership plans strengthens employee welfare protection
and strives to provide employees with a satisfactory work and life experience. At the same time the
Group strives to provide employees with diverse training opportunities improve the occupational health
and safety production management mechanism and provide employees with healthy and safe working
conditions. In terms of labor relations the Group continuously optimizes the Staff Representative
Congress and employee forums smooths employee communication channels encourages employees and
teams to actively put forward suggestions for the company's development and promotes the common
development of the enterprise and employees.
6.1.1. Rational Employment and Equal Opportunities
The Group strictly complies with national labor employment and recruitment regulations and has
formulated comprehensive internal rules covering recruitment labor contracts graduate hiring overtime
compensation and post management. Supported by a dedicated recruitment system it establishes a multi-
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level talent pool categorized by source type position region and rank fully meeting talent recruitment
and organizational development demands. Committed to a scientific efficient and impartial recruitment
mechanism the Group upholds human rights fairness and justice. It strictly prohibits child labor and
forced labor rejects all forms of discrimination throughout recruitment and employment and guarantees
equal development opportunities and fair treatment for all employees.During the reporting period the Group was awarded the honorary title of "2025 Guangdong Annual
Extraordinary Employer".
2025 Guangdong Annual Extraordinary Employer
6.1.1.1. Compliant Employment
The Group has formulated the “Employment and Labor Contract Management Regulations” to
standardize the employment of employees and the management of labor contracts ensuring that the
management of employee employment and labor contracts is based on clear rules. It has also formulated
the “External Shared Employment Management Regulations” to improve the legal definition of shared
employment relationships and clarify the roles and responsibilities of participating entities. Meanwhile
the Group firmly prohibits the employment of child labor. It has established a personnel system control
module that automatically alerts candidates who have not reached the legal age. In addition during the
employment and onboarding process candidates are required to submit their original ID cards again for
age re-verification. If there is any inconsistency an investigation process is immediately initiated to
verify the real age and employment offers are resolutely revoked for candidates under 18 years old. The
system has established a clear structure of qualification level standards defining the qualification
standards for each job category job type and position. The Group signs labor contracts with employees
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in a timely manner clarifying the rights and obligations of both parties to ensure compliant employment.During the reporting period the Group formulated the “Staff Secondment Management Regulations”
improved the staff secondment mechanism clarified the secondment approval authority and the
responsibilities of relevant departments and fully standardized the management of staff secondment
within the Group.During the reporting period the labor contract signing rate of the Group’s employees was 100%; no child
labor or forced labor was found in the Group and there were no strikes or work stoppages.The personnel system control module automatically alerts candidates who have not reached
the legal age
Structure of qualification level standards
6.1.1.2. Equal Employment
The Group adheres to the employment philosophy of "integrity and ability person-job fit fair
competition and ability-based promotion" and adheres to the principles of open recruitment equal
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competition and merit-based employment. It provides equal job opportunities to all applicants and
employees regardless of gender ethnicity marital status disability or family status. As of the end of the
reporting period the total number of employees in the Group was 17880 including 900 ethnic minority
employees 154 veteran employees 131 disabled employees and 29 short-term contract employees
(including rehired retirees); there were 0 dispatched employees. During the reporting period 5422 new
employees were recruited including 198 campus recruits and 5244 social recruits.Employee attrition
By gender
Male 12134 67.86%
Female 5746 32.14%
By age
Under 30 4135 23.13%
30-50 years old (not included) 13213 73.90%
50 and over 532 2.98%
By education attainment
Graduate students and above 134 0.75%
Undergraduate 3796 21.23%
College and below 13950 78.02%
By position
Full-time junior employee 16512 92.35%
Full-time middle management employee 1308 7.32%
Full-time senior management employee 60 0.34%
Employee turnover rate attrition
Overall Employee Turnover Rate 42.56%
By gender
Female 36.80%
Male 45.27%
By age
Under 30 63.08%
30-50 years old (not included) 35.69%
50 and over 28.66%
6.1.2. Performance Salary and Welfare
The Group has formulated fair and impartial salary systems and performance incentive mechanisms such
as the “Salary Management Regulations” and the “General Management Regulations” on Employee
Salary Incentives and Calculation building a competitive salary system for all employees. It carries out
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employee stock ownership plans to improve the benefit-sharing mechanism between employees and
shareholders. The Group continuously improves the employee rights and interests protection system
upgrades the employee welfare system establishes a Trade Union Committee and formulates sound rules
and regulations covering labor contracts social insurance salary distribution parental leave employee
physical examinations and work-related injury management effectively protecting the legitimate rights
and interests of employees. It also carries out employee care activities to enhance employees' sense of
work happiness and belonging.
6.1.2.1. Performance Management
The Group has formulated the “Performance Management Regulations” “Incentive MechanismConstruction Management Regulations" "Performance Appraisal Data Collection ManagementSpecifications” and “Performance Appraisal Card Compilation Guidelines.” Adhering to the principles
of "supporting strategy three balances and fairness and impartiality" the Group has established a
performance management organization and built a scientific comprehensive objective impartial
efficient practical and accurate performance management system. This system closely links
organizational and individual performance goals maximizes the activation of organizational and
individual efficiency and ensures the achievement of organizational strategic goals while improving
employees' individual performance.? Performance System
The performance system consists of three parts: the performance management system the performance
internal audit and inspection system and the performance improvement system. Among them the
performance management system mainly includes five parts: "appraisal type appraisal cycle appraisal
method appraisal team and performance process". The appraisal results will be directly applied to the
calculation of performance bonuses (specific calculation rules shall be subject to the latest salary
regulations) and also serve as an important basis for recruitment decisions talent inventory and selection
employee promotion employee training and development annual excellent selection and annual salary
adjustment. The performance internal audit and inspection system focuses on the standardized review of
the implementation process and conducts audit and supervision on the operation of both the performance
management and improvement systems. The performance improvement system refers to the process of
using systematic tools to analyze the gap between reality and goals identify the causes and implement
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targeted measures to continuously enhance competitive advantages. At the same time a performance
team award is set up to commend teams that have made contributions in this process.During the reporting period the Group's performance management system covered 100% of employees.Group Performance
Committee
(Virtual Body)
Group-level Performance Division/Base/Center- Department-level
Implementation Team level Performance Performance
Implementation Team Implementation Team
Performance Management Organizational Structure
Performance Management System
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? Performance Appeal and Feedback
Wemaintain open channels for performance feedback and appeals. Performance staff must verify scores
and provide feedback to appraisees as required. Appraisees are required to confirm the results within 2
working days of receipt; failure to respond within the specified period is deemed as acceptance. If an
appraisee disagrees with the result they may initiate the appeal process: "Appraisee submits appeal →
Performance staff accepts the appeal → Appraisal team (direct supervisor and two-level superior)
reviews and adjusts the score as appropriate". If the appraisee still disagrees with the General Manager’s
decision they may escalate the case to the Performance Management Department for verification. If the
Performance Management Department endorses the General Manager’s opinion it shall be deemed the
final conclusion; if there is a disagreement the case shall be submitted to the responsible/coordinating
executive for the final ruling thereby fully ensuring the fairness of the performance appraisal.
6.1.2.2. Employee Stock Ownership Plan
To enhance employee cohesion and promote the long-term sustainable and sound development of the
Company in accordance with the Guiding Opinions on Piloting the Implementation of Employee Stock
Ownership Plans by Listed Companies issued by the China Securities Regulatory Commission and the
Self-Regulatory Supervision Guideline No.1 for Listed Companies on Standardized Operation of the
Shanghai Stock Exchange the Group implements an equity incentive plan for key employees middle
and senior management personnel directors and other employees who have made outstanding
contributions to the Company’s performance or exert a significant impact on its future development. In
2022 the Group launched the First Outstanding Employee Stock Ownership Plan of OPPEIN Home
Group Co. Ltd. The plan covered a total of 230 incentive recipients with a cumulative granted volume
of approximately 578500 shares and a transaction value of about RMB 68.2559 million. In 2024 the
Board of Directors approved the extension of the First Outstanding Employee Stock Ownership Plan
until March 22 2026 so as to fully safeguard the interests of plan participants and the Company and
support its long-term development.During the reporting period the Group issued a prompt announcement regarding the upcoming expiration
of the employee stock ownership plan. In accordance with plan arrangements participants may
independently decide whether to sell their shares or apply for an extension of the duration based on
personal willingness and market conditions. The Group will continue to monitor the progress of the
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employee stock ownership plan and strictly fulfill information disclosure obligations in compliance with
relevant regulations. As of the disclosure date of this report the Company’s Board of Directors has
approved extending the First Outstanding Employee Stock Ownership Plan to March 22 2027.Announcement on the First Outstanding Employee Stock Ownership Plan of OPPEIN Home
Group Inc.
6.1.2.3. Employee WelfareThe Group attaches great importance to humanistic care for employees. By formulating the “EmployeeWelfare Subsidy Management Regulations” it has built a 360-degree all-round care system created a
mechanism of co-creation sharing win-win and common prosperity and continuously provided
employees with a variety of welfare benefits. Through the formulation of the OPPEIN Home Furnishing
Group Employee Visit Condolence and Donation Assistance Management Specifications the Group
pays attention to the work and life of front-line employees female employees retired personnel and
employees in difficulty continuously improves the employee assistance and support mechanism and
strives to enhance employees' sense of work happiness and belonging.During the reporting period the Group's employee social insurance coverage rate was 100%; it invested
approximately RMB 86 million in employee welfare construction with an average of 5.62 paid annual
leave days per employee.? Employee Welfare System
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In accordance with national regulations the Group provides employees with statutory welfare benefits
(including social insurance housing provident fund and statutory holidays). Adhering to the core
principle of "shared by all employees no omissions" it strives to move beyond the concept of "welfare
for a minority". Based on the characteristics of production operation and management the Group
reasonably provides a variety of supplementary employee welfare benefits such as holiday benefits
birthday benefits education and training benefits employee physical examination benefits employee
group activity benefits meal benefits communication subsidies and seniority awards. It also creates
exclusive emotional IP peripherals making welfare an important carrier for conveying corporate culture.The Group strictly follows national working hour rules and paid annual leave policies and observes all
legal holidays. It also offers compassionate leave types forming a full leave system covering 16
categories including sick leave parental leave and bereavement leave. It adopts a five-day work schedule
with seasonal working hour adjustments. To practice its people-oriented culture the Group applied a
7.25-hour daily working system and allowed earlier off-duty time on Fridays and in winter. During the
reporting period it further moved up the Friday finishing time to 4:15 PM effectively reducing working
hours and safeguarding employee well-being.The Group develops diversified employee benefits centering on personal growth family harmony and
life security and builds all-round activity systems. In 2025 nearly 100 welfare and cultural events were
held. Various sports and cultural activities enrich staff leisure time; family-themed events strengthen
emotional ties. Practical benefits including free medical service summer supplies child care benefits
and staff discounts fully satisfy daily needs. Targeted care activities are launched on major festivals. The
refined personalized care system meets diverse personal and family demands and delivers thoughtful
corporate warmth.
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Supplementary Employee Welfare
Cultural and Recreational Venues: Gym Basketball Court Table Tennis
Room Library Badminton Court Billiards Room Football Field
Living Supporting Venues: Nursing Room Bank Convenience Store Medical
Room (including Outpatient Department newly added Traditional Chinese
Supporting Facilities Medicine Physiotherapy Room newly added Psychological Counseling
Room providing acupuncture moxibustion massage and other services)
newly added Electric Vehicle Shed
Living Supporting Software: Carpool Platform (meeting employees'
carpooling needs for daily commuting holiday travel and other group trips)
Newly added dormitory curtains and range hoods; replaced dormitory doors
iron frame beds heating and cooling inverter air conditioners constant
Facility Improvement
temperature water heaters and anti-mosquito door curtains; renovated
basketball court; renovated and upgraded canteen
Newly added welfare housing and couple rooms; installed electric vehicle
Talent Apartment
charging piles and express delivery cabinets
Provide Golden Nanny cleaning services for dormitories and Sunflower
cleaning services for offices
Employee Services Launch fresh food group purchase services
Newly added employee lounges
Free dormitory convenience services and dormitory pest control
Festival activities (such as Lantern Festival Women's Day)
Special themed activities (such as Better Life Bazaar Food Safety Food
Employee Activities
Festival employee symposium and interaction)
Summer parent-child activities (DIY baking back kitchen visit)
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Clinic Nursing Room
Banks Library
Case: "OPPEIN Little Masters" Caring Summer Care Class
InAugust 2025 the closing ceremony of the first "OPPEIN Little Masters" Caring Summer Care Class
came to a successful conclusion. Through a month of warm companionship the children gained
knowledge and bloomed with confidence while their parents were able to focus on their work with
peace of mind. This warm journey rooted in the theme of "home" is not only a growth classroom for
the children but also a vivid interpretation of OPPEIN's corporate culture of "With HomeWith Love".
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? Employee CareActivities
The Group actively carries out cultural sports and care activities for employees and has
innovatively held events such as distribution of red envelopes for returning to work corporate
peripheral design competition workshop fun activities and parent-child study tours to enrich
employees' lives and enhance their sense of happiness and belonging. At the same time we have
built and implemented a comprehensive and precise assistance system for employees in financial
difficulty. We organize home visits and condolences to convey the Group's care launch donation
activities to gather love and assist employees in extreme financial difficulty in obtaining special
assistance from the Municipal Staff Development Foundation.During the reporting period the Group provided support to 33 employees in financial difficulty
with a total support investment of RMB 398500; extended condolences to 10 employees
experiencing illness or bereavement with a total condolence fund of RMB 31600; raised a total of
RMB 504600 in charitable funds through employee donations and corporate matching donations;
and held 44 special themed cultural sports and care activities.Assistance System for Employees in Financial Difficulty
The system covers a comprehensive range of scenarios including critical
illness reimbursement (for employees and their immediate family
members) and hardship support fully addressing the core needs of
employees and their families in daily life health and emergency
Full Coverage of situations. In 2025 the Ping An Fund provided support to 16 employees
Support Scenarios with serious illnesses with a total support amount of RMB 310200;
supported 5 person-times of employees with critical illnesses with a
support amount of RMB 60000; and provided assistance to 5 employees
from families in financial difficulty with a total support amount of RMB
13000.
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Assistance System for Employees in Financial Difficulty
Corresponding home visits and condolence payments are arranged for
emergencies such as employee injury illness or death enabling rapid
response to employees' urgent difficulties. Meanwhile the support scope
Timely and
is extended to the "family" dimension to cover employees' relatives. In
Compassionate
2025 the Group conducted home visits to 5 person-times of employees
Response
with a total expenditure of RMB 1600 on gifts; extended condolences to
5 person-times of employees who lost their immediate family members
with a total condolence payment of RMB 30000.A "donation matching" model has been set up which not only implements
the support activities through employees' spontaneous donations but also
amplifies the support effect through corporate matching donations thus
increasing the total amount of support resources. In 2025 the Group
Matching Donation
organized 7 employees to make donations raising a total of RMB 216500
Mechanism to Amplify
in charitable funds. It also provided synchronous charitable matching
Charitable Goodwill
donations for employees who applied for critical illness reimbursement
from the Ping An Fund and for employees in financial difficulty who
received donation support with a total matching donation amount of RMB
288100.
The Group proactively cooperates with external trade union resources to
Precise Connection with
secure support quotas for employees in financial difficulty and model
Support Resources from
workers in a targeted manner ensuring precise coverage of special groups.Higher-level Trade
In 2025 the Group secured a total of RMB 15300 in support funds for 7
Unions
people in financial difficulty.Thank You Letter from Love Multiplied Thank You Letter from Ping An Fund
Donation Recipients Support Recipients
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Case: Great Discount Carnival Walking Hand in Hand with Love
In June 2025 OPPEIN hosted its first large-scale Employee Internal Purchase Welfare Day at the
135 Headquarters Base Wind and Rain Corridor drawing enthusiastic participation from
employees and families despite rainy weather. Led by the OPPEIN Party Committee Guangzhou
OPPEIN Charity Foundation and the Group Labor Union the event collaborated with internal
departments and external brands including C&S Paper Yida Supermarket Bawei Biotechnology
and Xiaomi Auto. Offering exclusive discounts diverse benefits and thoughtful services it
delivered a shopping carnival integrating public welfare environmental protection and quality
living for all staff.Case: The First Staff Fun Sports Activity
In November 2025 to enrich employees’ cultural life and enhance team cohesion the Group
Labor Union (Party-Mass Work Office) hosted OPPEIN’s inaugural staff fun sports meet under
the theme "Fun Ignites Energy Unity Creates New Momentum". Blending fun competition and
warmth the event helped participants unwind from work and fully release vitality while
achieving linkage across the Group’s four major bases. Each base held tailored sports activities
presenting a vibrant scene of solidarity warmth and pursuit of excellence across the enterprise.
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Case: Painting Fatherly Love in the Cloud Warmth Hidden in the Bottle
On Father's Day in June 2025 with the theme of "Customized Happy Beer for Dad" the Labor
Union planned a unique parent-child wine bottle painting activity to convey the warmth of
OPPEIN's "Family Culture". 100 groups of employee families outlined the most sincere
confession to their fathers on the wine bottles and drawing paper. The offline event originally
scheduled for June 13 was switched to home creation due to a typhoon which resulted in more
quality parent-child time.Summer Parent-Child Activity at Qingyuan Table Tennis Challenge at Qingyuan Base
Base
Caring Summer Care Class at Wuxi Base Labor Union Study Tour Activity at Tianjin
Base
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Billiards Challenge at Qingyuan Base 2nd Parent-Child Activity at Wuhan Base
6.1.3. Training and Career Development
We attach great importance to talent retention and attraction. Focusing on "talent echelon construction
internal business empowerment and market-oriented business expansion" and taking the breakthrough
of digital and intelligent transformation as the core means we have built a talent ecosystem featuring
internal and external collaboration and value co-creation. We encourage and support employees to
participate in internal and external learning and improvement and provide professional skill certification
resources to fully support employees' development. We strengthen the internal training faculty provide
matched training opportunities for different types of employees and set up talent development plans to
empower employees provide them with broad space for personal growth and open up effective
promotion channels. This has formed a sound talent growth mechanism of "promoting the capable and
demoting the incompetent" providing a solid guarantee for building a high-quality high-performance
and professional team.
6.1.3.1. Talent Training
We attach great importance to talent retention and attraction. Focusing on "talent echelon construction
internal business empowerment and market-oriented business expansion" and taking the breakthrough
of digital and intelligent transformation as the core means we have built a talent ecosystem featuring
internal and external collaboration and value co-creation.Regarding internal training Guided by business needs the Group conducts training demand surveys and
has established a layered and classified precise training mechanism. Through the E-Orange College
online learning platform we meet employees' needs for learning anytime and anywhere. For new
employees college graduates and key positions such as R&D and design we strengthen training on the
177OPPEIN Home Group Inc.
implementation capability of the whole home furnishing strategy. Through the restructuring of Mini-
EMBA courses for senior executives we cultivate a management echelon with industry vision. At the
same time we regularly organize challenging team projects and enhance employees' cross-departmental
collaboration ability and cohesion through practices such as outward bound training.Regarding external collaborative talent development the Group shares industrial experience withvocational education and pioneers terminal empowerment initiatives including “Whole Case Design andTransaction” and “Anchor Incubation” now widely rolled out across the dealer system. It has launched
training courses assessment and certification systems covering material knowledge the industry-
education-evaluation apprenticeship framework and technical talent skill grading. The Group obtained
independent occupational evaluation qualifications for Interior Decoration Designers Mechanical
Carpenters and Salespersons. It has also been selected as a Guangdong provincial leading unit for the
industry-education-evaluation skill ecosystem chain and a model construction unit for Guangzhou’s
corresponding skill ecological zone.During the reporting period the total employee training duration of the Group reached 575301 hours
including 481038 hours of offline training and 94263 hours of online training with an average training
duration of 32.18 hours per employee. The Group invested RMB 5.508 million in vocational training.Talent Development and Cultivation System
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Skilled Personnel Training System
Talent Training Content
Provide training on new knowledge in employees' professional and related
Employee Knowledge
fields to equip them with the new knowledge new thinking and new
Training
vision required to complete their job duties.Continuously provide training on job responsibilities process
Employee Skill
specifications and operating procedures to enable employees to master the
Training
essential skills for completing their job duties.Provide general quality training such as psychology interpersonal
Professional Conduct relations and team building to help employees develop a sound mindset
Training establish correct outlook on life and values and comprehensively improve
their professional quality.Key Focuses of Talent Training and Development
Implement targeted talent reserve and training establish a key talent pool
Talent Echelon
form a competition mechanism of "promoting the capable and demoting
Optimization
the incompetent" and build a high-quality team.Adopt a hybrid experiential training method that integrates learning and
Efficient Training
practice to precisely improve employees' business capabilities and ability
Model
to solve practical problems.In accordance with national policies and corporate strategies and in
Integration of Policy
combination with business needs strengthen organizational and individual
and Demand
performance and promote the training of skilled talents.Based on the annual demand survey provide training programs that meet
Personalized Training
personalized growth needs.Technology Platform Integrate multiple platforms such as E-Orange College to simplify learning
Integration paths and improve learning efficiency.
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E-Orange Online Learning Platform - E-Orange College
New Feather Program - Specialized Training Eagle Program - Group Talent Echelon
for New Graduates Training Camp
Rainbow Program - Specialized Training Elite Program - Specialized Training Camp
Camp for E-commerce Talent Supply Chain for R&D Talents
The First "OPLink Efficiency Pioneer"
New Employee Induction Training
Training Camp
180OPPEIN Home Group Inc.
Mini-EMBAMiddle and Senior Management
Team Building – Outward Bound Training
Development Program
Case: Exhibition Hall Visit & Practical Training
In 2025 to address practical problems encountered by employees in daily management and operational
processes the Group's Second Business Division organized employees to visit the exhibition hall and
invited trainers from the Training Department to conduct on-site teaching aiming to effectively
improve training effectiveness. During the training the trainer first gave a systematic and detailed
explanation of the products to help employees deeply understand the company's business; then
immediately organized employees to practice product introduction in the exhibition hall realizing
"integration of learning and practice" to make the training more practical and application-oriented.This "hands-on" professional teaching model not only enhanced the professionalism of the training
but also efficiently solved business pain points.
6.1.3.2. Career Development
In line with the home furnishing industry characteristics the Group has formulated institutional
documents including OPPEIN Home Group Talent Development Management Regulations Employee
Career Development & Qualification Management Specifications and Competitive Appointment
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Management Specifications. It has built an echelon talent pool focusing on management and skilled
personnel systematically planning cultivating and deploying talents. The Group accelerates
empowerment of high-potential high-performance talents and advances the elite talent strategy. By
clarifying competitive appointment criteria at all levels it strengthens a dynamic talent selection
mechanism and builds a professional elite management team. It also conducted the 2025 job qualification
evaluation to stimulate internal talent vitality promote talent growth and provide solid talent support for
corporate vision and strategic goals. During the reporting period 100% of employees received regular
performance and career development assessments.Principles of Talent Development Management
Training Instead of
Adhere to the talent supply strategy of "training instead of recruitment";
Recruitment
Elite Selection Match talents with positions and promote the best candidates;
Refined Training Provide targeted empowerment for talents;
Effective Incentives Make the best use of talents and give full play to their abilities.OPPEIN Career Development Plan
OPPEIN Talent Promotion Channel
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6.1.4. Occupational Health and Safety
The Group attaches great importance to the occupational health and safety of employees and is
committed to providing healthy and safe working conditions for employees while continuously
improving the occupational health and safety management system. The Group strictly implements
relevant laws and regulations including the "Work Safety Law of the People's Republic of China" the
"Occupational Disease Prevention and Control Law of the People's Republic of China" the "Regulations
onWork Safety Training for Production and Business Units" and the "Fire Protection Law of the People's
Republic of China". Meanwhile it has formulated a number of internal systems such as the "Regulations
on Occupational Health Management " the "Eight Major Prohibitions on EHS (Environment Health and
Safety)" the "EHS (Environment Health and Safety) Assessment and Incentive Management
Regulations" and the "EHS Meeting and EHS Inspection Management Regulations". The Group
resolutely implements the work safety policy of "safety first prevention first comprehensive
management" continuously fulfills work safety responsibilities and strives to ensure the occupational
health of employees. Through measures such as carrying out EHS training and emergency drills
launching the information-based process for hidden danger investigation and management and
developing and implementing special operation and accident management processes as planned the
Group ensures that the workplace meets occupational health requirements and makes every effort to
create a sound work safety environment.During the reporting period the Group accumulated 246449 hours of EHS training covering 121220
person-times with an EHS training coverage rate of 100%; conducted EHS internal audits on more than
30 factories; no work safety accidents occurred nor did any major or above-level accidents; no work-
related fatalities occurred.
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6.1.4.1. Work Safety Management
The Group adheres to the safety vision of "To be an EHS performance leader in the home furnishing
industry and a home enterprise with excellent safety culture". It strictly follows the accountability
principles of "Whoever takes charge assumes responsibility" and "Business management must
incorporate safety management". The Group encourages employees to expand their responsibility
awareness from "being accountable for oneself" to "being accountable for colleagues" so as to build a
mutual safety protection network among all staff. By fostering an excellent and continuously improving
safety culture the Group has formulated institutional documents including the Base Work Safety
Responsibility System Safety Culture Manual and Stop Work Guideline. It has officially launched the
corporate safety culture development project and implemented the initiative of "One OPPEIN One EHS
Standard". All levels of personnel have signed Safety Commitment Letters to clarify safety management
responsibilities striving to achieve the safety goals of zero casualties zero environmental pollution and
zero occupational injuries.During the reporting period the signing rate of Safety Commitment Letters across the Group reached
100%.
Safety Responsibility
Safety Culture
Commitment
We combine the characteristics and principles of work safety in the furniture manufacturing industry use
two core management tools: risk classification and control and hidden danger investigation to establish
a dual prevention mechanism for accidents. In accordance with the OPPEIN Home Furnishing Group
Hazard Identification and Risk Classification Management Regulations we implement hierarchical
management of safety risks. Starting from hazard identification we use risk control as the means to
184OPPEIN Home Group Inc.
prevent risks before hidden dangers are formed; in accordance with the OPPEINHome Furnishing Group
Accident Hidden Danger Investigation and Governance Management Regulations we conduct
hierarchical governance of potential accidents timely identify possible deficiencies and loopholes in the
risk control process monitor the entire process and strive to eliminate hidden dangers in the bud to
prevent safety accidents.During the reporting period the rectification rate of potential safety hazards in the Group reached 100%;
the lost working hours rate per million working hours decreased by approximately 37.83% year-on-year.Dual prevention work mechanism for safety risk classification and hidden accident detection
and management
? Hazard Reporting
To strengthen safety management the Group developed the hazard reporting process in accordance with
the “Investigation and Rectification of Potential Accidents” and formulated the Operational Guidelines
for Hazard Reporting Process. It regularly releases hazard reporting data of each factory to ensure timely
identification and submission of potential safety risks improve reporting efficiency and accuracy and
realize full functions including closed-loop tracking of hidden dangers statistical assessment of
rectification rate and hierarchical classification of hazards. Meanwhile the Group tracks rectification
progress in real time at Group base and factory levels monitors core indicators such as rectification rate
and conducts multi-dimensional data analysis to effectively support risk assessment prevention and
control decision-making.During the reporting period the Group collected more than 25000 valid hidden hazards with a
rectification rate of safety hazards maintaining at 100%.
185OPPEIN Home Group Inc.
"Hidden Hazard" Reporting Process
6.1.4.2. Occupational Health Management
Benchmarking against the ISO 45001 occupational health and safety management standard the Grouphas formulated a series of management regulations including “Management Rules for Operations inFlammable and Explosive Areas” “Hot Work Management Rules" “Confined Space OperationManagement Rules” “Working at Height Management Rules” and “Personal Protective EquipmentManagement Rules.” The Group continuously improves the occupational health supervision mechanism
through regular physical examinations technological upgrading and provision of sufficient personal
protective equipment.In terms of employee care the Group establishes occupational health surveillance files for employees
and arranges a comprehensive physical examination for all staff every year so as to timely monitor
physical conditions and prevent the accumulation of occupational health hazards. Meanwhile the Group
entrusts professional assessment and testing institutions to conduct annual detection of occupational
hazardous factors in workplace premises.Where workplace conditions fail to meet national and industrial
standards immediate rectification and improvement measures are implemented to eliminate occupational
disease hazards ensure workplaces comply with occupational health requirements and enable
employees to work in a safer healthier and more comfortable environment.By the end of the reporting period OPPEIN Tianjin Wuxi Chengdu and Qingyuan bases have all
obtained ISO 45001 certification. During the reporting period the employee physical examination
coverage rate reached 100%; the detection rate of occupational hazard factors was 100% with zero new
occupational disease cases; the certification holding rate of special operation personnel remained 100%.
186OPPEIN Home Group Inc.
Certificate of Occupational Health and Safety Monthly verification of employment status of
Management System Certification – Qingyuan employees with occupational contraindications
Base
? Work-related Injury DisposalIn accordance with relevant laws and regulations such as the “Work Safety Law of the People's Republicof China” and the “Regulations on the Reporting and Investigation of Production Safety Accidents” we
have issued the “Regulations on the Reporting and Disposal of Safety Accidents” to standardize the
reporting investigation analysis determination and recording of production safety accidents. We have
formulated the “Implementation Specifications for Work-related Injury Management” requiring each
base and factory to formulate emergency response plans based on actual conditions organize training
and drills to enable employees to master emergency handling methods and demand the immediate
activation of emergency response plans when an accident occurs to minimize accident losses.In terms of accident investigation the Group's EHSManagement Department will set up an investigation
team according to the type of accident and all departments shall support and cooperate with the accident
investigation and disposal work. The investigation team shall complete the investigation within 7
working days from the date of the accident conduct cause analysis formulate and implement corrective
and preventive measures form an accident investigation report and submit it to the compliance approver
for approval before issuing the accident approval and closing the case.During the reporting period 139 employees of the Group suffered work-related injuries; the total working
days lost due to work-related injuries were 948.71 days with 0.06 working days lost per million yuan of
revenue. The work loss rate per million working hours decreased by 37.83% year-on-year achieving the
187OPPEIN Home Group Inc.
challenge target of more than 30% for three consecutive years.Process of Handling Work-related Accidents
6.1.4.3. Safety Education and Promotion
To help employees grasp workplace safety knowledge and operational skills and prevent safety incidents
the Group issued the “Safety Education and Training Management Regulations” and built a full safety
training system. It holds regular emergency drills and delivers ongoing safety education via lectures
forums team discussions practical training video courses online learning and safety manual study.? Safety Culture Training
All new employees must complete mandatory onboarding safety training while in-service staff receive
regular cybersecurity promotion and safety awareness courses via the Group’s E-Orange College
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platform. Offerings include National Cybersecurity Publicity Week activities phishing risk alerts and
cybersecurity awareness videos. During the period the Group further deepened safety culture across all
levels. Customized training for middle and senior management covered all production bases with a
95.72% satisfaction rate. The year also arranged 29 training sessions for frontline administrators with
1925 participant attendances.
The participation rate of employees in safety culture training reached 100% in the reporting period.Safety Culture Training: Wuxi Base Safety Culture Training: Tianjin Base
Safety Culture Training: Qingyuan Base Safety Culture Training: Chengdu Base
? Emergency Drills
The Group’s Emergency Management Department organizes emergency drills for sudden environmental
incidents at least once every six months. The drill plan summary photos and attendance records shall be
submitted to the EHS Management Department. Meanwhile On-site Emergency Response Cards for
Sudden Environmental Incidents shall be posted at key positions to ensure the effectiveness of leak
prevention facilities interception facilities emergency equipment and other materials within their
jurisdiction. If any damage or failure occurs timely maintenance or replacement shall be carried out.During the reporting period the Group conducted a total of 70 emergency drills.
189OPPEIN Home Group Inc.
Case: Fire Emergency Drill at Qingyuan Furniture Factory
In June 2025 Qingyuan Furniture Factory held a fire drill to strengthen employees’ emergency
response and coordination for sudden production accidents. Once alerted the factory activated its
emergency plan with all assigned teams performing respective duties. The drill assessed rescue
capacity remedied plan flaws improved staff professionalism and raised overall safety awareness.Case: Vessel Explosion Accident Emergency Drill at Qingyuan Base
In June 2025 Qingyuan Metal Doors and Windows Factory conducted an unannounced special
emergency drill for a vessel explosion testing employees’ emergency response to unexpected
situations without prior notice. The entire drill—from emergency discovery reporting emergency
plan activation to completion—took 4 minutes and 48 seconds with all personnel safely evacuated in
1 minute and 3 seconds. The evacuation was orderly with no incidents. The drill enhanced employees’
comprehensive emergency capabilities in using protective equipment conducting rescue and
evacuation and raised their environmental and safety awareness.
6.1.5. Labor Relations Management
The Group fully recognizes that its development depends on the contribution of every employee attaches
great importance to employee voices and actively improves labor relations. It continuously optimizes
190OPPEIN Home Group Inc.
management mechanisms and workflows including the Staff Congress rational proposal collection
collective negotiation factory affairs disclosure and labor dispute mediation. Through the “1+1+N”
employee suggestion platform and digital feedback system the Group builds a multi-dimensional
efficient and smooth labor communication system to effectively protect the legitimate rights and interests
of all employees. It also conducts employee engagement and satisfaction surveys to understand employee
needs in a timely manner and create a comfortable working environment.
6.1.5.1. Employee Communication Channels
To smooth employee communication channels the Group issued complete regulations including Staff
Congress rules employee symposium management sentiment surveys factory affairs disclosure
rational proposals and employee relations management encouraging staff to contribute ideas for
corporate development. In 2025 themed “In-depth Promotion and Empowerment through Democracy”
the Group optimized the Staff Congress mechanism and upgraded democratic management via
digitalization expanded channels and streamlined processes. It adopted the Lark platform to build an
online system for representative elections proposal handling and rectification tracking alongside an
employee representative database and online proposal workflow. Using an offline-plus-Lark live meeting
model and “Face-to-Face with the Chairman” forums it held six symposiums across three manufacturing
bases and external institutions to broaden participation channels. The Group improved the closed-loop
mechanism of collection acceptance assignment supervision feedback and publicity to better
implement proposals. The upgraded Employee Feedback Service Center 3.0 added interactive evaluation
and efficiency ranking enabling instant responses to employee needs.During the reporting period the Staff Congress collected 61 valid proposals and reviewed and approved
9 proposals + 211 regulations + 1 resolution. The Group received 1414 employee rational suggestions
and handled a total of 1411 suggestions (including carry-overs from 2024). Among them 848 Category
A suggestions were adopted and achieved tangible results. Both the response rate and closed-loop rate of
demands on the online platform reached 100%.
191OPPEIN Home Group Inc.
Build Platforms to Smooth the "Suggestion Path"
Staff Congress & Symposiums: Rational Proposals: A regular Employee Feedback Service
The most efficient platform for efficiency-improving platform Center: A 7x24-hour online
the Group's senior management that encourages employees to channel for quick response to
to centrally listen to respond to contribute their wisdom to cost personalized demands.on-site and systematically reduction efficiency
address the core concerns of improvement quality
employees. enhancement and process
optimization.Examples of Practical Achievements of the Staff Congress
Canteen upgrading and renovation Introduction of medical room and "one-yuan
medical treatment" project
Upgrading and renovation of gym facilities Construction of talent apartments and
dormitory renovation
192OPPEIN Home Group Inc.
6.1.5.2. Employee Engagement and Satisfaction Survey
The Group is committed to building an agile organization with high employee satisfaction
engagement and vitality. Based on the engagement-driven model and key influencing factors the
Group continuously enhances employee engagement fully stimulates staff vitality and steadily
strengthens employees’ sense of identity and loyalty to the enterprise. An annual questionnaire
survey on employee engagement satisfaction and vitality is conducted covering compensation and
incentives welfare performance management training and career development management
effectiveness workplace environment job responsibilities and other dimensions. The survey enables
the Group to fully understand employee needs and respond to their demands in a timely manner. In
accordance with the survey results the Human Resources Department and Compensation & Benefits
Department formulate and implement targeted improvement action plans.During the reporting period the Group’s employee satisfaction stood at 80.11% employee
engagement at 80.41% and employee vitality at 81.39%—exceeding China’s overall vitality level
of 79% and the manufacturing industry average of 75%. The employee survey participation rate
reached 83.88% representing a substantial increase compared with the previous year.
2025 Annual Employee Engagement Analysis Report
193OPPEIN Home Group Inc.
6.2. Social Responsibility
The Group strictly complies with relevant laws and regulations leveraging its resources to give back to
society and fulfill social responsibilities. Committed to public welfare it founded the Guangzhou
OPPEIN PublicWelfare Foundation. Guided by the mission of supporting vulnerable groups prioritizing
education assistance caring for disadvantaged families and those with health concerns and promoting
steady social development and upholding the vision of making homes warmer and love more powerful
the Group continuously launches featured public welfare initiatives including rural revitalization
education support and the Love & Care Initiative. It adheres to Party building guidance promotes in-
depth integration of Party building with production and operation unites synergy for development and
pursues co-construction sharing and value creation with all stakeholders.Since its establishment in 2020 Guangzhou OPPEIN Public Welfare Foundation has taken the Group’s
brand value of “With Home With Love” as its spiritual core and systematically built a “2+3+X” public
welfare brand matrix. It proactively undertakes missions including helping the disadvantaged and
disabled providing financial aid for students and caring for families and carries out charitable activities
in fields such as rural revitalization education support flood prevention and disaster relief. By giving
back to society through public welfare the Foundation strives to realize the development vision of
making homes warmer and love more powerful.By the end of the reporting period Guangzhou OPPEIN Public Welfare Foundation had received
cumulative donations of RMB 51.5814 million with public welfare expenditures of RMB 45.6727
million. During the reporting period its total public welfare donations reached RMB 6.2064 million. The
Foundation has been awarded numerous honors including the Kapok Gold Cup of Guangdong Poverty
Alleviation Outstanding Contribution Unit for Guangzhou Rural Revitalization Grade A Transparency
Rating for charitable organizations in Guangzhou and the Meizhou Poverty Alleviation Award.OPPEIN’s "2+3+X" Public Welfare Brand System
194OPPEIN Home Group Inc.
The "Love Home Program" and the "Love & Care Program" which closely
Two Cornerstone
Projects (Focus on align with the brand's core values continuously focus on family well-being
Love & Health)
health and safety.The "Pine Tree Excellence Program" (poverty alleviation and student aid)
Three Independent
the "Goose Flight Program" (special education) and the "Spark Inheritance
Brands (Deeply
Engaged in Program" (red education). These initiatives demonstrate our systematic
Education &
thinking and execution capability ranging from material support to spiritual
Inheritance)
care and from inclusive public welfare to targeted empowerment.We actively respond to national initiatives such as rural revitalization Green
Diversified Public
Welfare Outreach and Beautiful Guangdong poverty alleviation disaster relief and pandemic
(Respond to the response efforts demonstrating the sense of responsibility of OPPEIN as an
Needs of the Times)
outstanding enterprise in the new era.
6.2.1. Education Support
Education is the cornerstone of rural revitalization and a core engine driving the comprehensive
upgrading of rural economy culture and society. The Guangzhou OPPEIN Public Welfare Foundationdeeply recognizes the power of education. Since its establishment it has taken “Supporting Education toFulfill Dreams” as one of its key public welfare directions and continuously donated funds to improve
school hardware facilities and build a healthy and safe campus environment. Meanwhile it focuses onnurturing and expanding characteristic independent public welfare projects such as the “Pine TreeExcellence Program” (focusing on education support for children from disadvantaged families) and the
“Goose Flight Program” (focusing on education support for children with intellectual disabilities)
building a three-dimensional support network covering individuals to families and schools to
communities and promoting the in-depth and practical implementation of education support work.During the reporting period the Guangzhou OPPEIN Public Welfare Foundation completed donations
of RMB 3.3367 million for education assistance and tutoring.
6.2.1.1. Building an Educational Public Welfare Brand
To reduce poverty education must come first. Education assistance has always been the core mission of
the Guangzhou OPPEIN Public Welfare Foundation. The Group has built the “Love+” public welfare
195OPPEIN Home Group Inc.
brand system taking the "Love Home Program" and "Love&Care Program" as the cornerstones and
relying on three major educational public welfare brands: the Pine Tree Program (focused on student aid
for impoverished students) the Goose Flight Program (devoted to intellectual development education for
children with disabilities) and the Spark Inheritance Program (dedicated to training and education at
revolutionary heritage bases). It continues to make efforts in China’s education support cause helpingmore students realize their dreams. Going forward adhering to the original aspiration of “Home withLove” the Guangzhou OPPEIN Public Welfare Foundation will continue to rely on its three major
educational public welfare brands. Working together with governments institutions and social forces it
will steadily advance public welfare in education from sporadic actions to systematic transformation and
from material support to capacity co-construction offering valuable practical experience for the
systematic development of public welfare undertakings in China.Case: OPPEIN "Love Core Book House" Guards the Reading Dreams of 879 Children in
Guizhou Mountainous Areas
In November 2025 after learning about the reading difficulties of left-behind children in Ziqiang
Community Pingba District Anshun Guizhou the "Love Core Plan" team rushed to the site for
investigation at the first time. With "solving real needs" as the core they skillfully combined idle
community space with children's usage habits to create a customized "customization + decoration
integration" solution. This public welfare action spanning thousands of miles successfully built a
"breathable and environmentally friendly reading paradise" for 879 children through the overall
renovation of idle space customized configuration of formaldehyde-free bookshelves and soft
furnishings and supplementation of diverse books allowing the children's dreams to take root here.
196OPPEIN Home Group Inc.
Case: Empowering Special Education in Eastern Guangdong with a Systematic Public
Welfare Model
1. In October 2025 the Guangzhou OPPEIN Charity Foundation launched the "Wild Goose Journey
Plan" National Day Charity Tour going deep into the proposed project sites of the "Star Children's
Home" kitchen and workshop in Pingyuan County and the Special Education School in Jiaoling
County. Through in-depth dialogues with associations parents and teachers it accurately gained
insights into the living conditions of children with special needs and carried out charity donation
activities. This trip to Meizhou during the National Day holiday was not only a phased return visit and
promotion of the project but also an in-depth practice of OPPEIN's public welfare philosophy. In the
future the Guangzhou OPPEIN Charity Foundation hopes to work with local governments and
professional institutions to build a special education support model that meets local realities
improving the growth environment of children with special needs in multiple dimensions from teacher
training and family empowerment to community integration aiming to stimulate local forces and build
a "public welfare ecosystem" of support networks.
6.2.2. Rural Revitalization
The Group actively responds to and implements the important instructions of General Secretary Xi
Jinping on implementing the rural revitalization strategy and promoting common prosperity. It further
improves and strengthens the rural revitalization work system leverages its professional advantages and
enthusiastically participates in activities such as campaigns such as "Ten Thousand Enterprises Assisting
Ten Thousand Villages" for poverty alleviation "Ten Thousand Enterprises Revitalizing Ten Thousand
Villages" for rural revitalization and the "High-Quality Development Project for One Hundred Counties
One Thousand Towns and Ten Thousand Villages" Green and Beautiful Guangdong ecological
construction road construction and disaster area reconstruction. By spreading the spirit of public welfare
197OPPEIN Home Group Inc.
to more corners in need of care the Group comprehensively supports rural revitalization. Going forward
while growing stronger we will enhance our pragmatic responsibility continue to promote the spirit of
charity and poverty alleviation and effectively bridge poverty alleviation achievements with rural
revitalization efforts contributing greater strength to rural revitalization.During the reporting period the Guangzhou OPPEIN Public Welfare Foundation invested RMB 2.0714
million in assistance funds to support the construction of rural revitalization projects; simultaneously it
carried out 4 volunteer activities organizing 40 participants with a total service duration of 278 hours.Case: Yangcheng Guangcai Co-Creation Public Welfare Project Boosts Rural Revitalization in
Lutian Conghua
In June 2025 under the guidance of relevant municipal authorities the first Yangcheng Guangcai Co-
Creation Public Welfare Project jointly launched by Guangzhou OPPEIN Charity Foundation and
GuangzhouYangcheng Guangcai Charity Foundation officially landed in Lutian Town Conghua. The
Group’s Party Committee Secretary presented a donation plaque representing RMB 500000 in special
funds to Lutian Town’s Party Secretary alongside the unveiling of the OPPEIN Spark Inheritance Plan
Red Education Base. Adopting an innovative model of charitable donation red education and
consumption assistance the project precisely empowers local rural development and paints a new
blueprint for rural revitalization.
198OPPEIN Home Group Inc.
Case: Joining Hands to Support the Reconstruction of the Earthquake-stricken Area in Tibet
In January 2025 a magnitude 6.8 earthquake struck Dingri County Xigaze City Tibet. The Group
responded quickly and once again extended a helping hand transferring RMB 500000 in charitable
funds to the special account for earthquake relief through the Guangzhou Charity Federation to send
warmth and care to the people in the disaster area. The Group also pledged RMB 4.68 million at the
2025 "6·30" Activity to Support Rural Revitalization in Guangzhou.
The Group pledged a donation of RMB 4.68 million at the 2025 Guangzhou "6·30" Rural
Revitalization Campaign
6.2.3. Party Building Activities
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Group’s
Party Committee focuses on learning and implementing the spirit of the 20th National Congress of the
Communist Party of China and the Third Plenary Session of the 20th Central Committee. While
strengthening the Group’s Party building it has always closely centered on the core task of guiding
199OPPEIN Home Group Inc.
OPPEIN’s high-quality development. Taking “Party Building + Five Integrations” (integration with
production and operation talent training integrity building corporate culture and social responsibility)
as the key approach it promotes the coordinated development of Party building and business around thewhole-home furnishing strategy achieving solid results. The OPPEIN-style “Party Building + FiveIntegrations” model integrates the vitality of Party building into corporate management and translates the
effectiveness of Party building into a strong driving force for corporate innovation and development
demonstrating the responsibilities of a private enterprise on the journey of building a great modern
socialist country and realizing national rejuvenation.During the reporting period the Group’s Party Committee held 13 Party Committee meetings reviewing
17 proposals; organized 13 special Party building study sessions covering more than 600 participants;
and carried out 5 themed Party day activities involving approximately 1000 participants. The Party
Committee admitted 5 new Party members approved 2 probationary Party members to become full
members and organized special training for 4 Party activists and 5 development candidates. The Group’sParty Committee was consecutively awarded the title of “Model Party Organization with Dual Strengthsand Six Excellences” by Guangzhou authorities and honored as a “Demonstration Team on the RedCotton Pioneer List for Non-Public Economic Organizations in Guangzhou”.Successively awarded the title of Guangzhou Honored as a Demonstration Team on
Model Party Organization of "Double Strengths Guangzhou "Kapok Pioneer List"
& Six Excellences"
200OPPEIN Home Group Inc.
Case: Inherit glorious traditions stay true to public welfare mission
In June 2025 marking the 104th anniversary of the CPC’s founding the OPPEIN Party Committee
jointly organized themed public welfare Party building activities with municipal authorities andcharity foundations. Under the theme “Yangcheng Guangcai · OPPEINWalks Together—Inherit FineTraditions Uphold Public Welfare Aspirations Celebrate the Party’s Birthday” the event focused on
livelihood care red heritage inheritance and rural revitalization practicing the Party’s mission with
concrete actions to mark its anniversary.Case: Launching the "Party-Labor Linkage to Offer Love" Themed Charity Sale
In June 2025 the OPPEIN Group Party Committee together with the Group Labor Union warmly
launched the "Party-Labor Linkage to Offer Love" themed charity sale. The activity received positive
responses from all Party members and the masses collecting more than 200 love items. Under the
careful organization of the Party Committee Office the charity sale scene was lively attracting 129
person-times to participate and raising a total of RMB 2208 in charitable funds.
201OPPEIN Home Group Inc.
7. APPENDIX
7.1. Sustainable Development Key Performance Indicators
Governance Performance
2025
Indicator Unit
Performance
Corporate Governance
Annual Revenue RMB 100 million 17.332
Annual Net Profit Attributable to Shareholders of the Parent
RMB 100 million 19.97
Company
Total taxes paid RMB 100 million 16.78
Revenue per capita RMB 10000 96.38
Number of Board Members Person 7
Of which: Independent directors Person 3
Non-independent directors Person 4
Number of members on the Board of Supervisors Person 3
Of which: Shareholder-appointed supervisors Person 2
Employee-Representative
Person 1
Supervisors
Number of executives Person 4
Of which: Male executives Person 2
Female executives Person 2
Number of shareholder meetings held Times 5
Of which: Extraordinary General Meetings Times 4
Number of Proposals Considered by the Shareholders' Meeting Items 19
Number of Board of Directors meetings held Times 14
Number of proposals reviewed by the Board of Directors Items 58
Board member attendance rate % 100
Number of meetings held by the Compensation and Evaluation
Times 2
Committee
Number of proposals reviewed by the Compensation and Evaluation
Items 3
Committee
Number of meetings held by the Audit and Risk Management
Times 4
Committee
Number of proposals reviewed by the Audit and Risk Management
Items 12
Committee
Number of meetings held by the Strategy and Sustainable
Meetings 1
Development Committee
Number of proposals considered by the Committee on Strategy and
Items 2
Sustainable Development
Number of meetings held by the Nominating Committee Times 2
202OPPEIN Home Group Inc.
Governance Performance
2025
Indicator Unit
Performance
Number of proposals reviewed by the Nominating Committee Items 3
Total number of motions reviewed by specialized committees Items 24
Number of periodic reports issued Copies 4
Number of ESG reports published Copies 1
Number of interim announcements published Copies 111
Number of earnings briefings held Times 3
Number of online views of earnings briefings Times 138000
Number of investor questions answered on the "SSE e-Interaction"
Questions 27
platform
Cash dividend per share (including tax) RMB 2.477
Total cash dividend RMB 100 million 15.00
Total cash dividends as a percentage of net profit attributable to
%75.14
shareholders of the parent company for the period
Risk and Compliance Management
Number of legal training sessions conducted Times 13
Duration of legal training Hours 50
Legal training attendance Person-time(s) 230
Business Ethics
Employee Integrity Pledge Sign-up Rate % 100
Number of Anti-Corruption Inspections Times 160
Of which: Suppliers Times 72
Distributors Times 88
Number of legal proceedings related to unfair competition and
Times 0
antitrust
Number of leads received regarding complaints and reports on
Cases 126
business ethics
Resolution rate of business ethics tip-offs % 100
Number of "Integrity Culture" training sessions held Sessions 67
"Integrity Culture" training attendance Person-time (s) 17369
"Integrity Culture" training coverage rate % 100
Environmental Performance
2025
Indicators Unit
Performance
Resource Consumption and Management
Water Consumption Metric tons 1694724.25
Metric tons per million in
Water consumption intensity 98.35
revenue
Total wastewater discharge Metric tons 983959.00
203OPPEIN Home Group Inc.
Environmental Performance
2025
Indicators Unit
Performance
Of which: Domestic sewage Metric tons 950795.00
Industrial wastewater Metric tons 33164.00
Natural gas consumption Cubic meters
2681496.00
Diesel consumption Liters
1765550.30
Gasoline consumption Liters 79965.68
Purchased electricity MWh 277304.78
Electricity consumption intensity MWh/million in revenue 16.09
Total energy consumption (coal equivalent) Metric tons 37869.87
Tons of standard coal / RMB
Energy consumption intensity 2.20
million in revenue
Share of renewable energy consumption % 15.18
PV installed capacity MW 63.375
Of which: Guangzhou Headquarters MW 0.80
Qingyuan Base MW 20.40
Tianjin Base MW 9.13
Wuxi Base MW 13.80
Chengdu Base MW 12.00
Wuhan Base MW 7.23
PV generation MWh 49644.28
Of which: Guangzhou Headquarters MWh 900.50
Qingyuan Base MWh 18073.83
Tianjin Base MWh 10903.62
Wuxi Base MWh 15017.29
Chengdu Base MWh 4749.04
Annual standard coal savings4 10000 metric tons 1.50
Of which: Guangzhou Headquarters 10000 metric tons 0.03
Qingyuan Base 10000 metric tons 0.55
Tianjin Base 10000 metric tons 0.33
Wuxi Base 10000 metric tons 0.45
Chengdu Base 10000 metric tons 0.14
Annual CO2 equivalent emissions reduction5 10000 metric tons of CO2 3.24
Of which: Guangzhou Headquarters 10000 metric tons of CO2 0.06
Qingyuan Base 10000 metric tons of CO? 1.15
4 Energy consumption calculations are based on the "General Rules for the Calculation of Comprehensive Energy
Consumption" (GB/T 2589-2008) issued by the State Administration for Market Regulation and the Standardization
Administration of China;
5The calculation coefficient for CO? emissions reductions from photovoltaic power generation refers to the "2023
Emission Factors for Emission Reduction Projects in the China Regional Power Grid";
204OPPEIN Home Group Inc.
Environmental Performance
2025
Indicators Unit
Performance
Tianjin Base 10000 metric tons of CO? 0.86
Wuxi Base 10000 metric tons of CO? 0.95
Chengdu Base 10000 metric tons of CO? 0.22
HCFC-22 refrigerant6 Kilograms 60.00
Refrigerant R-22 Kilograms 130
Emissions Management
Environmental protection facility simultaneous operation
%100
rate
Pollutant Monitoring Compliance Rate % 100
Direct greenhouse gas emissions (Scope 1)7 tCO2 6437.70
Of which: Guangzhou Headquarters tCO2 282.02
Qingyuan Base tCO2 2727.83
Tianjin Base tCO2 2407.91
Wuxi Base tCO2 393.98
Chengdu Base tCO2 474.86
Guangzhou Headquarters tCO2 151.10
Indirect greenhouse gas emissions (Scope 2)8 tCO2 147137.97
Of which: Guangzhou Headquarters tCO2 11150.04
Qingyuan Base tCO2 53022.33
Tianjin Base tCO2 26178.55
Wuxi Base tCO2 27722.21
Chengdu Base tCO2 19105.70
Guangzhou Headquarters tCO2 12282.74
Total greenhouse gas emissions (Scope 1+2) tCO2 153575.67
Of which: Guangzhou Headquarters tCO2 11572.97
Qingyuan Base tCO2 55750.16
Tianjin Base tCO2 28586.46
Wuxi Base tCO2 28116.19
Chengdu Base tCO2 19580.56
Guangzhou Headquarters tCO2 12433.84
tCO2 per RMB million in
Total greenhouse gas emission intensity 8.91
revenue
NOx (nitrogen oxides) emissions Metric tons 3.53
SOx (sulfur oxides) emissions Metric tons 1.39
6 Refrigerants shall be recovered by a third-party professional organization;
7 Scope 1 greenhouse gas emissions include direct emissions from gasoline diesel and natural gas; greenhouse gas
emissions are calculated in accordance with the "Guidelines for the Accounting and Reporting of Enterprise
Greenhouse Gas Emissions—Power Generation Facilities (2022 Revised Edition)" issued by theMinistry of Ecology
and Environment of China;
8 Scope 2 greenhouse gas emissions include indirect emissions from purchased electricity; the 2022 national
electricity carbon dioxide emission factor published by the National Bureau of Statistics is used.
205OPPEIN Home Group Inc.
Environmental Performance
2025
Indicators Unit
Performance
VOC (volatile organic compounds) emissions Metric tons 13.11
Particulate matter emissions Metric tons 8.18
Waste management
Total Non-Hazardous Waste Generated Metric tons 179685.31
Of which: Total Municipal Solid Waste Generated Metric tons 8374.77
Total industrial waste generated Metric tons 171310.54
Amount of non-hazardous waste recycled Metric tons 171310.54
Of which: Waste paper Metric tons 3278.91
Scrap metal Metric tons 13537.29
Plastic waste Metric tons 1059.33
Wood waste Metric tons 148474.95
Scrap glass Metric tons 1468.05
Waste leather Metric tons 18.75
Mixed-material waste Metric tons 2222.71
Waste cardboard Metric tons 25.32
Waste foam Metric tons 11.52
Scrap rubber Metric tons 1.60
Other Metric tons 1212.11
Non-hazardous waste recovery rate % 95.34
Metric tons per RMB million
Non-hazardous waste emission intensity 10.37
in revenue
Total Hazardous Waste Generated Metric tons 2248.01
Paint-containing wastewater (HW12
Of which: Metric tons 624.16
substances)
Waste paint sludge (HW12 substances) Metric tons 613.25
Empty paint cans (HW49) Metric tons 465.24
Waste contaminated materials (HW49) Metric tons 275.69
Waste adhesive (HW13) Metric tons 52.97
Rubber residue (HW13) Metric tons 12.96
Waste activated carbon (HW49) Metric tons 16.49
Paint-containing sludge (HW12) Metric tons 18.76
Waste solvents (HW06) Metric tons 125.11
Used motor oil (HW08) Metric tons 0.04
Paint-soaked rags and gloves (HW49) Metric tons 43.33
Hazardous waste proper disposal rate % 100.00
Total paper consumption9 Metric tons 215.24
Of which: A3 paper Metric tons 0.87
9 The unit weights for various types of paper are as follows: A3 paper 9.98 g/sheet; A4 paper 4.37 g/sheet; A5 paper
2.18 g/sheet; shipping waybill 3.58 g/sheet; two-part dot matrix paper 4.99 g/sheet; three-part dot matrix paper 7.58
g/sheet.
206OPPEIN Home Group Inc.
Environmental Performance
2025
Indicators Unit
Performance
A4 paper Metric tons 204.34
A5 paper Metric tons 7.19
Shipping manifest Metric tons 1.39
Carbonless copy paper Metric tons 0.61
Dot matrix triplicate forms Metric tons 0.83
Practicing Environmental Protection Principles
Number of new energy buses mid-size buses and
passenger cars purchased and leased during the reporting Units 18
period
Supply Chain Performance
2025
Indicators Unit
Performance
Sustainable Procurement
Percentage of Legally Sourced and Traceable Raw Materials for
%100
Panels
ENF Certification Pass Rate for Procured Panels % 100
Signing rate of integrity cooperation commitment letters % 100
Supplier Management
Total Number of Suppliers Companies 2089
Number of suppliers in Mainland China Companies 2081
Of which: Companies Companies 7
Companies Companies 108
Companies Companies 461
South China Companies 1356
Central China Companies 71
Northwest Region Companies 5
Southwest Region Companies 73
Number of overseas suppliers Companies 8
Percentage of localized suppliers % 99.62
Percentage of procurement value from mainland China suppliers % 99.09
Of which: Northeast Region % 0.01
North China % 7.49
East China % 23.54
South China % 54.72
Central China % 7.86
Northwest Region % 0.02
Southwest Region % 5.45
207OPPEIN Home Group Inc.
Supply Chain Performance
2025
Indicators Unit
Performance
Percentage of procurement from overseas suppliers % 0.91
Number of suppliers that have signed and comply with the company's
Companies 2089
Supply Chain Code of Conduct
Number of suppliers developed and screened Companies 823
Of which: Number of suppliers approved Companies 601
Number of new suppliers participating in on-site inspections Companies 124
Number of suppliers participating in the annual performance
Companies 1105
evaluation
Of which: Cabinetry Companies 413
Modular Home Furnishings Companies 348
Doors and Windows Companies 241
Bathroom Companies 43
Home Goods Companies 60
Number of suppliers with sustainability certifications Companies 613
Number of suppliers with quality management system certification Companies 741
Number of suppliers with environmental management system
Companies 406
certification
Number of suppliers with Occupational Health and Safety
Companies 484
Management System certification
Number of suppliers whose contracts were terminated due to non-
Companies 5
compliance
Number of potential suppliers rejected for non-compliance Companies 62
Number of supplier communication and training sessions Sessions 85
Of which integrity training sessions Sessions 5
Number of suppliers trained Companies 132
Supplier ESG training Sessions 18
Number of Tier 1 suppliers that have completed ESG audits Companies 30
Product and Service Performance
2025
Indicators Unit
Performance
Product Quality Upgrades
Number of Product Recalls Units 0
Product Recall Rate % 0
External sampling pass rate % 100
Number of internal quality audits Times 1
Number of quality culture training sessions Times 78
Hours of quality culture training Hours 48.50
Number of people covered by quality culture training People 1570
208OPPEIN Home Group Inc.
Product and Service Performance
2025
Indicators Unit
Performance
Number of regulated chemicals identified under management
Items 20
policies
Number of chemicals scheduled for phase-out Items 2
Number of chemical substances disclosed regarding regulation
Items 18
registration and use
Number of products containing chemical substances that have been
Items 15
published
R&D and Innovation
RMB 100
R&D investment 9.09
million
RMB 100
Product R&D Expenditures Over the Past 5 Years 50.89
million
R&D Expenditures as a Percentage of Revenue % 5.27
Number of R&D personnel People 1867
Percentage of R&D staff relative to total company headcount % 10.44
Number of patent applications filed annually Items 51
Of which: Invention patents Items 11
Utility Model Patents Items 20
Design Patents Items 20
Total number of patents obtained Items 854
Of which: Invention patents Items 81
Utility Model Patents Items 442
Design patents Items 331
Total computer software copyrights obtained Items 138
Customer Rights Protection
Consumer satisfaction with basic services Points 8.59
Product Quality Reputation Score 8.79
Timely Resolution Rate of Complaints % 91.79
Year-over-year growth rate of timely complaint resolution rate % -0.51
Resolution satisfaction rate % 77.11
Year-over-year growth rate of satisfaction rate % 1.94
Number of participants in specialized training on customer Number of
675
complaint response participants
Total duration of specialized training on customer complaint
Hours 60
response
Number of specialized training sessions on customer complaint
Sessions 27
response
Number of customer complaint response evaluations Times 27
Customer Complaint Response Assessment Pass Rate % 100
Number of customer data breaches Times 0
209OPPEIN Home Group Inc.
Product and Service Performance
2025
Indicators Unit
Performance
Total investment in information security RMB 10000 194.02
Number of information security training and practical sessions Sessions 4
Number of people covered by information security training and
People 14364
practical sessions
Employee and Social Performance
2025
Indicators Unit
Performance
Fair Employment and Equal Opportunity
Number of Child Labor Cases Identified During the Reporting Period Persons 0
Number of cases of forced labor identified during the reporting period Persons 0
Number of strikes/work stoppages during the reporting period times 0
Labor contract signing rate % 100
Social insurance coverage rate % 100
Employee health check-up coverage rate % 100
Total number of permanent employees Persons 17880
Total number of female employees Persons 5746
Gender
Total number of male employees Persons 12134
Full-time entry-level employees Persons 16512
Level Full-time mid-level managers Persons 1308
Full-time senior managers Persons 60
Total number of employees under 30 Persons 4135
Age Total number of employees aged 30–49 (excluding 50) Persons 13213
Total number of employees aged 50 and older Persons 532
Graduate degree or higher Persons 134
Educational
Bachelor's Persons 3796
Attainment
Associate degree or below Persons 13950
Total number of new hires for the year Persons 5422
Total number of short-term contract employees (retirees rehired) Persons 29
Total number of ethnic minority employees Persons 900
Total number of veterans Persons 154
Total employee turnover rate % 42.56
Female Employee Turnover Rate % 36.8
Gender
Male employee turnover rate % 45.27
Turnover rate for employees under 30 % 63.08
Employee turnover rate for those aged 30–49 (excluding
%35.69
Age 50)
Employee turnover rate for those aged 50 and older
%28.66
(excluding employees of retirement age)
210OPPEIN Home Group Inc.
Employee and Social Performance
2025
Indicators Unit
Performance
Compensation Benefits and Performance
Number of employees covered by performance evaluations and incentive
Persons 17880
bonuses
Of which: Number of management staff Persons 1368
Number of non-management employees Persons 16512
Percentage of employees covered by performance evaluations and
%100
incentive bonuses
Of which: Percentage of management staff % 100
Percentage of non-management employees % 100
Employees who actually took parental leave Persons 108
Of which: Male employees Persons 38
Female employees Persons 70
Employee welfare fund RMB 10000 8600
Assistance for employees in need Persons 33
Visits to sick employees and staff who have lost family members Persons 10
Organized cultural and recreational activities Times 44
Training and Career Development
Amount Invested in Vocational Training RMB 10000 550.80
Total Number of Formal Employees Trained Attendance 670101
Total number of permanent employees trained Persons 17880
Percentage of female employees trained % 30.36
Gender
Percentage of male employees who received training % 69.64
Percentage of entry-level employees who received
%54
training
Level
Proportion of Middle Managers Receiving Training % 26
Proportion of senior management training % 20
Total training hours for permanent employees Hours 575301
Of which: In-person training Hours 481038
Online training Hours 94263
Average training hours per full-time employee Hours 32.18
Average training duration for female employees Hours 28.94
Gender
Average training hours for male employees Hours 29.35
Average training hours for full-time entry-level
Hours 41.75
employees
Level
Average training hours for full-time mid-level managers Hours 19.2
Average training hours for full-time senior management Hours 22.26
Total training hours for short-term contract employees (including rehired
Hours 375
retirees)
Average training hours for short-term contract employees (including Hours 4.93
211OPPEIN Home Group Inc.
Employee and Social Performance
2025
Indicators Unit
Performance
rehired retirees)
Occupational Health and Safety
Employee physical examination rate % 100
Number of fire and other specialized emergency drills conducted Times 70
Rate of hazard identification and rectification % 100
Safety risk protection training coverage rate % 100
Certification rate for special operations personnel % 100
Occupational hazard factor detection rate % 100
Number of new occupational disease cases Cases 0
Number of work-related deaths Persons 0
Workdays lost due to work-related injuries Days 984.71
Total number of work-related injuries Persons 139
Million working hours lost Rate of decline in lost working hours % 37.83
EHS training coverage rate % 100
Total EHS training hours Hours 246449
Total number of EHS training participants Persons 10586
Total number of EHS training sessions Sessions 121220
Employee Communication and Grievances
Total number of employee suggestions received Items 1446
Number of Suggestions Adopted and Implemented (Category A) Items 848
Group employee satisfaction % 80.11
Group Employee Engagement % 80.41
Group Employee Engagement % 81.39
Social Responsibility
Guangzhou OPPEIN Public Welfare Foundation Supports Rural
RMB 10000 207.14
Revitalization with Assistance Funds
Donation Amount for Educational Assistance and Mentoring Programs
RMB 10000 333.67
by the Guangzhou OPPEIN Public Welfare Foundation
Number of volunteer activities conducted Times 4
Number of participants in volunteer activities Persons 40+
Total volunteer hours Hours 278
Group charitable donations RMB 10000 620.46
212OPPEIN Home Group Inc.
7.2. GRI Index
OPPEIN Home Group Inc. and its subsidiaries reported the information referenced in this
Instructions GRI Content Index in accordance with the GRI Standards during the period from January
1 2025 to December 31 2025.
GRI Standards GRI 1: Foundation 2021
Sustainability Reporting
Disclosure Items Chapter
Standard
2-1 Organizational Details About This Report
2-2 Entities Included in the
Organization's Sustainability About This Report
Report
1.
2-3 Reporting Period Reporting
Organization
Frequency and Contact About This Report
and
Information
Reporting
Compared to the 2024 Environmental
Methodology
Social and Governance Report there
2-4 Restated Information have been no significant changes in the
Group's organizational size structure
or ownership
2-6 Operations Value Chain and Highlights of Sustainability Initiatives
2. Other Business Relationships in 2025; About OPPEIN
GRI 2:
Operations 2-7 Employees Employee Responsibility
General
and Employee Responsibility;
Disclosures
Employees 2-8 Informal Employees Sustainability Key Performance
2021
Indicators—Employees and Society
2-9 Governance Structure and
Corporate Governance
Composition
2-10 Nomination and Selection of
Corporate Governance
the Highest Governance Body
2-11 Chair of the Highest
Corporate Governance
Governance Body
3.
2-12 The Supervisory Role of the
Governance
Highest Governance Body in Corporate Governance
Managing Impact
2-13 Delegation of Authority Risk and Compliance Controls;
Regarding Management Impact Addressing Climate Change
2-14 The Role of the Highest Sustainable Development
Governance Body in Sustainability Management
213OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
Reporting
Corporate Governance; see the Group's
2-15 Conflicts of Interest
2025 Annual Report
2-16 Communication on Material Sustainable Development
Issues Management
2-17 Shared Understanding of the Sustainable Development
Highest Governance Body Management
2-18 Performance Evaluation of Sustainable Development
the Highest Governance Body Management
2-19 Compensation Policy Corporate Governance
2-20 Compensation Determination Corporate Governance; Employee
Process Responsibility
Highlights of Sustainability Initiatives
2-22 Statement on Sustainability
in 2025; Sustainable Development
Strategy
Management
2-23 Policy Commitments About This Report
2-24 Integrating Policy Corporate Governance; Business
Commitments Ethics; Environmental Management
4. Strategy
Business Ethics; Protection of
Policies and 2-25 Procedures for Addressing
Customer Rights; Employee
Practices Adverse Impacts
Responsibility
2-26 Mechanisms for Seeking Business Ethics; Employee
Advice and Raising Concerns Responsibility
2-27 Compliance with Laws and Business Ethics; Responsible
Regulations Marketing
2-28 Association Membership About OPPEIN
2-29 Approach to Stakeholder Sustainable Development
5.
Engagement Management; Corporate Governance
Stakeholder
2-30 Collective Bargaining
Engagement Employee Responsibility
Agreements
3-1 Process for Identifying Sustainable Development
Material Issues Management
Sustainable Development
GRI 3: Material Issues 2021 3-2 List of Material Topics
Management
3-3 Management of Material Sustainable Development
Issues Management
201-1 Direct Economic Value
See the Group's 2025 Annual Report
GRI 201: Economic Generated and Distributed
Performance 2016 201-2 Financial impacts of climate
Addressing Climate Change
change and other risks and
214OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
opportunities
201-3 Defined benefit plan
obligations and other retirement Employee Responsibility
plans
201-4 Government Financial
See the Group's 2025 Annual Report
Subsidies
202-1 Ratio of standard starting
salary to local minimum wage by See the Group's 2025 Annual Report
GRI 202: Market gender
Performance in 2016 202-2 Percentage of senior
management recruited from the See the Group's 2025 Annual Report
local community
203-1 Infrastructure investments
Social Responsibility
GRI 203: Indirect Economic and support services
Impacts 2016 203-2 Significant indirect
Social Responsibility
economic impacts
Supplier Management; Sustainability
GRI 204: Procurement 204-1 Percentage of spending on
Key Performance Indicators - Supply
Practices 2016 local suppliers
Chain
205-1 Number of operational sites
Business Ethics; Responsible
where corruption risk assessments
Marketing
have been conducted
GRI 205: Anti-Corruption 205-2 Communication and training
Business Ethics; Responsible
2016 on anti-corruption policies and
Marketing
procedures
205-3 Incidents of corruption
Business Ethics
identified and actions taken
206-1 Legal Proceedings
GRI 206: Unfair Competition Regarding Anti-Competitive
Business Ethics
Practices 2016 Behavior Antitrust and Monopoly
Practices
207-1 Tax Policy Business Ethics
207-2 Tax governance controls
Business Ethics
and risk management
GRI 207: Taxation 2019
207-3 Engagement with and
Management of Tax-Related Business Ethics
Stakeholders
301-1 Weight or volume of Sustainability Key Performance
GRI 301: Materials 2016
materials used Indicators – Environment
215OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
Green and Eco-friendly Commitment
301-2 Recycled content
Production System
301-3 Recycled Products and Their Green and Eco-friendly Commitment
Packaging Materials Production System
Resource Utilization and Management;
302-1 Energy consumption within
Sustainability Key Performance
the organization
Indicators—Environment
Resource Utilization and Management;
302-3 Energy Intensity Sustainability Key Performance
GRI 302: Energy 2016 Indicators —Environment
302-4 Reduction in Energy
Resource Utilization and Management
Consumption
Resource Utilization and Management;
302-5 Reducing Energy Demand
Green and Eco-friendly Commitment
for Products and Services
Production System
303-1 Interactions between the
organization and water as a shared Resource Utilization and Management
resource
303-2 Management of impacts
Resource Utilization and Management
related to wastewater discharge
GRI 303: Water and
303-3 Water Withdrawal Resource Utilization and Management
Wastewater 2018
Pollutant Control; Sustainability Key
303-4 Discharge
Performance Indicators—Environment
Resource Utilization and Management;
303-5 Water Consumption Sustainability Key Performance
Indicators—Environment
304-1 Sites owned leased or
managed by the organization
Ecosystem and Biodiversity
located in adjacent to or within
Conservation
areas of high biodiversity value
outside protected areas
304-2 Significant impacts of
GRI 304: Biodiversity 2016 Ecosystem and Biodiversity
activities products and services
Conservation
on biodiversity
304-4 Species listed in the IUCN
Red List and national conservation Ecosystem and Biodiversity
lists found in habitats within areas Conservation
affected by operations
305-1 Direct (Scope 1) greenhouse Addressing Climate Change; Key
GRI 305: Emissions 2016
gas emissions Sustainability Key Performance
216OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
Indicators—Environment
305-2 Energy-related indirect Addressing Climate Change;
(Scope 2) greenhouse gas Sustainability Key Performance
emissions Indicators—Environment
Addressing Climate Change;
305-4 Greenhouse Gas Emissions
Sustainability Key Performance
Intensity
Indicators—Environment
Resource Utilization and Management;
305-5 Greenhouse Gas Emission
Sustainability Key Performance
Reductions
Indicators – Environment
305-7 Emissions of Nitrogen
Pollutant Control; Sustainability Key
Oxides (NOx) Sulfur Oxides
Performance Indicators – Environment
(SOx) and Other Major Gases
306-1 Waste generation and
Pollutant Control
significant impacts related to waste
306-2 Management of significant
Pollutant Control
impacts related to waste
Pollutant Control; Sustainability Key
306-3 Waste Generated Performance Indicators —
GRI 306: Waste 2020 Environment
Pollutant Control; Sustainability Key
306-4 Waste Transferred to
Performance Indicators —
Disposal Facilities
Environment
Pollutant Control; Sustainability Key
306-5 Waste Entering Disposal
Performance Indicators —
Facilities
Environment
308-1 New suppliers screened
using environmental assessment Supplier Management
GRI 308: Environmental criteria
Assessment of Suppliers 2016 308-2 Adverse environmental
impacts in the supply chain and Supplier Management
actions taken
Employee Responsibility;
401-1 Hiring rate and employee
Sustainability Key Performance
turnover
Indicators—Employees and Society
401-2 Benefits provided to full-
GRI 401: Employment 2016
time employees (excluding Employee Responsibility
temporary or part-time employees)
Employee Responsibility;
401-3 Parental Leave
Sustainability Key Performance
217OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
Indicators — Employees and Society
403-1 Occupational Health and
Employee Responsibility
Safety Management System
403-2 Hazard Identification Risk
Assessment and Accident Employee Responsibility
Investigation
403-3 Occupational Health
Employee Responsibility
Services
403-4 Occupational Health and
Safety Matters: Worker
Employee Responsibility
Participation Consultation and
Communication
403-5 Occupational Health and
Employee Responsibility
GRI 403: Occupational Safety Training for Workers
Health and Safety 2018 403-6 Promotion ofWorker Health Employee Responsibility
403-7 Prevention and Mitigation
of Occupational Health and Safety
Employee Responsibility
Impacts Directly Related to
Business Operations
403-8 Personnel Covered by the
Occupational Health and Safety Employee Responsibility
Management System
Employee Responsibility;
403-9 Workplace Injuries Sustainability Key Performance
Indicators—Employees and Society
403-10 Work-Related Health
Employee Responsibility
Issues
Employee Responsibility;
404-1 Average number of training
Sustainability Key Performance
hours per employee per year
Indicators — Employees and Society
GRI 404: Training and 404-2 Employee skill development
Employee Responsibility
Education 2016 and transition assistance programs
404-3 Percentage of employees Employee Responsibility;
receiving regular performance and Sustainability Key Performance
career development reviews Indicators—Employees and Society
GRI 405: Diversity and 405-1 Diversity of the Governing Corporate Governance; Employee
Equal Opportunity 2016 Body and the Workforce Responsibility
GRI 406: Anti- 406-1 Incidents of Discrimination
Employee Responsibility
Discrimination 2016 and Corrective Actions Taken
218OPPEIN Home Group Inc.
Sustainability Reporting
Disclosure Items Chapter
Standard
407-1 Operations and suppliers
GRI 407: Freedom of
where risks to freedom of
Association and Collective Employee Responsibility
association and the right to
Bargaining 2016
collective bargaining may exist
408-1 Operations and suppliers at
GRI 408: Child Labor 2016 risk of significant incidents of Employee Responsibility
child labor
409-1 Operations and suppliers at
GRI 409: Forced or
significant risk of forced or Employee Responsibility
Compulsory Labor 2016
compulsory labor
413-1 Sites with local community
engagement impact assessments Social Responsibility
GRI 413: Local Communities and development plans
2016 413-2 Sites with actual or potential
significant negative impacts on Social Responsibility
local communities
414-1 New suppliers screened
Supplier Management
GRI 414: Social Assessment using social assessment criteria
of Suppliers 2016 414-2 Adverse social impacts in
Supplier Management
the supply chain and actions taken
416-1 Assessment of health and
safety impacts by product and Product Quality Upgrades
GRI 416: Customer Health service category
and Safety 2016 416-2 Incidents of non-compliance
related to the health and safety Product Quality Upgrades
impacts of products and services
417-1 Requirements for product
and service information and Product Quality Upgrades
labeling
417-2 Incidents of non-compliance
GRI 417: Marketing and
regarding product and service Product Quality Upgrades
Labeling 2016
information and labeling
417-3 Incidents of non-compliance
related to marketing Responsible Marketing
communications
418-1 Verified complaints
GRI 418: Customer Privacy
regarding breaches of customer Protection of Customer Rights
2016
privacy and loss of customer data
219OPPEIN Home Group Inc.
7.3. Shanghai Stock Exchange Sustainability Reporting Topic Index
"Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4—
Reference
Preparation of Sustainability Reports (Revised January 2026)" and "Shanghai Stock Exchange
Standards
Self-Regulatory Guidelines for Listed Companies No. 14—Sustainability Reports (Trial)"
Dimension No. Topic Corresponding Section of This Report
1 Addressing Climate Change Addressing Climate Change
2 Pollutant Emissions Pollutant Control
3 Waste Management Pollutant Control
4 Ecosystem and Biodiversity Conservation Ecosystem and Biodiversity Conservation
Environment 5 Environmental Compliance Management Environmental Management
6 Energy Utilization Resource Utilization and Management
7 Water Resource Utilization Resource Utilization and Management
Green and Eco-friendly Commitment
8 Circular Economy
Production System
9 Rural Revitalization Social Responsibility
10 Social Contribution Social Responsibility
11 Innovation-Driven Technology R&D and Innovation
Science Technology Research and
12 Ethics in Science and Technology
Innovation
Sustainable Procurement; Supplier
13 Supply Chain Security
Society Management
Fair Treatment of Small and Medium-
14 Supplier Management
Sized Enterprises
15 Product and Service Safety and Quality Product Quality Upgrades
Data Security and Customer Privacy
16 Protection of Customer Rights
Protection
17 Employees Employee Responsibility
Sustainable Development Management;
18 Due Diligence
Supplier Management
Sustainability
19 Stakeholder Engagement Sustainable Development Management
Governance
20 Anti-Bribery and Anti-Corruption Business Ethics
21 Anti-Unfair Competition Business Ethics
220Group Customer Service Hotline：???-???-????
Group Sales Hotline：???-???-????
Group Official Website：http://www.oppein.com
Group Investor Relations Email：oppeinir@oppein.com
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