With home with love with OPPEIN
With home with love with OPPEIN
Group Customer Service Hotline：400-884-1868 OPPEIN Home Group Inc.Group Sales Hotline：400-884-1869
Group Official Website：http://www.oppein.com 2024 Sustainability Report
Group Investor Relations Email：oppeinir@oppein.com
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CONTENT
ABOUT THIS REPORT 001
PREFACE 01 THEME 02 GOVERNANCE
BOARD STATEMENT 003 STRIVE FORWARD WITH DETERMINATION 027 CORPORATE GOVERNANCE 039
ABOUT OPPEIN 005 LEADING THE INDUSTRY AND WIN TOGETHER 031 RISK AND COMPLIANCE CONTROLS 046
SUSTAINABLE DEVELOPMENT MANAGEMENT 013 WORLD JOURNEY GRATEFUL TO YOU 033 BUSINESS ETHICS 049
RESPONSIBLE MARKETING 055
03 PRODUCTS ENVIRONMENT 04 SUPPLY CHAINS 05 AND SERVICES
ENVIRONMENTAL MANAGEMENT SYSTEM 059 SUSTAINABLE PROCUREMENT 091 PRODUCT QUALITY UPGRADES 107
ADDRESSING CLIMATE CHANGE 062 SUPPLIER MANAGEMENT 093 INNOVATION RESEARCH AND DEVELOPMENT 121
RESOURCES UTILIZATION AND CUSTOMER RIGHTS AND BENEFITS 129
MANAGEMENT 067
EMISSIONS MANAGEMENT 073
GREEN PRODUCTRION SYSTEM 081 06 EMPLOYEES CIRCULAR ECONOMY 086 AND SOCIETY
ECOSYSTEMS AND BIODIVERSITY 087 APPENDIX
PRACTICE ENVIRONMENTAL CONCEPTS 087 EMPLOYEE RESPONSIBILITY 137 SUSTAINABILITY KPI INDEX 171
SOCIAL RESPONSIBILITY 164 GRI INDEX 185
SSE SUSTAINABILITY REPORT
TOPIC INDEX 190
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Scope of the report
Aligned with our financial reporting scope this report covers the Group’s ESG management approaches
ABOUT THIS REPORT initiatives and performance throughout 2024 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 foresight.This fourth sustainability report from OPPEIN Home Group ("OPPEIN""the Group" or“ we”) outlines our
sustainable development concepts practices and annual progress. Prepared with objectivity standardization
transparency and comprehensiveness principles it aims to enhance communication with stakeholders Data sources
through information disclosure. Financial data originates from the 2024 annual financial report while other content is drawn from internal
records and public sources. All monetary values are in RMB unless specified. The Board of Directors assumes
responsibility for the report’s accuracy and completeness.Preparation basisThis report is prepared in accordance with the“ Shanghai Stock Exchange Self-Regulatory Guidelines for ListedCompanies No. 1 - Standardized Operations" and also refers to the "GRI Sustainability Reporting Standards" Access method
(GRI Standards) issued by the Global Sustainability Standards Board (GSSB) The "United Nations Sustainable This bilingual (Chinese/English) PDF report is accessible on our official website (www.oppein.com) and the
Development Goals" (SDGs) issued by the United Nations and the "Shanghai Stock Exchange Self-Regulatory Shanghai Stock Exchange platform (www.sse.com.cn). The Chinese version prevails in case of discrepancies.Guidelines for Listed Companies No. 14 - Sustainability Reporting (Trial)" issued by the Shanghai Stock For feedback or inquiries please contact oppeinir@oppein.com.Exchange.
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Low carbon commitment for green circular economy
OPPEIN embeds green practices across product lifecycles advancing energy management and renewable energy adop-
PREFACE tion. In 2024 we expanded PV capacity by 2.93 MW (total 44.13 MW) generating 41060 MWh of clean power and reducing CO2 emission by 27400 tons. Our Qingyuan base achieved national/provincial green factory certification reinforcing circular economy efforts in design production and logistics.Working together for a sustainable supply chain
OPPEIN strengthens supply chain resilience through system reforms and green procurement practices. In 2024 we estab-
lished an integrated procurement system ensured 100% legal traceability of raw materials and implemented ESG evalu-
BOARD STATEMENT ations for suppliers. With 559 certified sustainable suppliers and full compliance with our supply chain code of conduct
we collaborate with industry partners to develop standards and foster a green ecosystem for sector-wide sustainability.Amid global industrial restructuring and China's home furnishing sector embracing digitalization and dual-carbon goals
OPPEIN advances its "Shining at 30" vision. Facing evolving consumer demands technological shifts and sustainability
imperatives we strengthen capabilities through enhancing consumer lifestyles building resilience through change and
driving value innovation to lead high-quality industry development.Innovation for product quality
Guided by the vision to become a global home furnishing leader OPPEIN advances its "Ultimate Lifestyle" philosophy OPPEIN enhances customized home experiences through technological innovation investing over RMB 1.0 billion in R&D
through six pillars: operational excellence collaborative partnerships social equity talent development innovation and and digital manufacturing in 2024. With ISO9001/IQNET certifications across subsidiaries we ensure quality while
green initiatives. We fortify governance with robust risk controls reshape industry paradigms through eco-management expanding product diversity and affordability. Customer-centric initiatives include strengthened data privacy protections
and digital transformation and measure social responsibility through compassionate action delivering strategic stability and the "Integrated Home Furnishing Golden Butler" service elevating post-sales support for premium experiences.alongside innovative progress.People-oriented for social responsibility
OPPEIN prioritizes employee well-being with RMB 95 million invested in welfare programs and support for 45 staff in
need earning 2024 Guangdong Top Employer and Veteran Employment Model honors. Upholding our "Warm Homes
Stable operation for sustainable development with Love" vision we conducted rural revitalization and education initiatives through the OPPEIN Foundation donating
OPPEIN embeds sustainable governance into daily operations through a "supervision-decision-management-execution" RMB 15.9 million to community welfare.framework enhanced by transparency and digitalization. In 2024 we upgraded risk controls maintained SSE’s A-grade
disclosure rating for six consecutive years and hosted three investor briefings with 130000+ live views. All employees Over three decades of growth OPPEIN expresses sincere gratitude for all stakeholders. As climbers scaling new heights
completed business ethics training and signed integrity pledges. Demonstrating shareholder commitment we allocated we will advance governance innovation set green benchmarks and lead digital transformation. Grounded in service
RMB 1.502 billion in cash dividends under our 2024-2026 pledge of annual RMB 1.5+ billion distributions. excellence and sustainability we march toward our vision of becoming a global home furnishing leader.
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About OPPEIN
Company Profile
Founded in 1994 (Stock Code: 603833) and headquartered in
Guangzhou OPPEIN is China's first customized home furnishing
listed company with market capitalization exceeding RMB 100
billion. Starting with whole-cabinet solutions we now cover ward-
robes whole-home customization wooden doors bathroom
vanities and soft furnishings operating 7900+ global stores
across 118 countries. As an integrated R&D-manufacturing-sales
leader we deliver modern holistic home solutions worldwide.Establishment of OPPEIN 1994
Stores worldwide More than 7900
Business income in 2024 RMB 18.925 billion
Net profit in 2024 RMB 2.599 billion
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2024 Performance Business Layout
OPPEIN operates five production bases
Total floor area exceeds (Tianjin Qingyuan Wuxi Chengdu
3.15million square meters Wuhan) spanning 3.15 million sqm. Each
facility supports a 600km supply radius
and enables nationwide delivery within
8 hours.
Tianjin China
In July 2011 the Tianjin base began opera-
tion and in 2013 its second phase was
completed and operational.Tianjin
Chengdu China Wuxi China
On April 10 2019 OPPEIN Chengdu base In 2014 OPPEIN reached a strategic deal
invested 2.5 billion yuan and spanning 414 with Wuxi's Huishan District Government
acres began production. It focuses on smart Chengdu Wuxi receiving 300 acres of land for a two-phase
homes to enhance customized home intelli- project worth 2.8 billion yuan.gence.Qingyuan China Wuhan China
OPPEIN Southern production base spans In July 2021 OPPEIN began constructing the
994000 sq.m addressing South China Central China Intelligent Manufacturing
market demands while extending global Qingyuan Wuhan Base in Wuhan's Caidian District aiming to
reach. increase high-quality production capacity
and expand services globally.*Map compiled according to the approval number: GS(2019) No. 1702
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Corporate culture
MISSION CORE VALUES
Provding world-class personalized home furnishing products and Fairness brightness cooperation and freedom
services to families around the globe
VISION ENTERPRISE SPIRIT
Building OPPEIN into the world's outstanding home furnishing brand Pursuing perfection
ESG Rating Performance in 2024
BB A AAA AA
MSCI ESG Rating Upgraded to BB Wind ESG rating upgraded to A QuantData ESG rating upgraded to AAA CSI ESG Rating Maintains AA
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National Green Factory 2023 Guangzhou Private Enterprises with Outstanding
Ministry of Industry and Information Technology of the Contribution to Industry Scale (Industry)
People's Republic of China Guangzhou Leading Group for Promoting the Development of Small and
Medium-sized Enterprises
AEO Certificate
Guangzhou Customs People's Republic of China Top 20 ESG Information Disclosure in the Optional
Consumption Sector of A-Share Listed Companies in 2024
China Securities Index (CSI)
Top 500 Private Enterprises in China's Manufacturing
Industry in 2024 2024 ESG Golden Dawn Corporate Governance Award
All-China Federation of Industry and Commerce (ACFCIC) Securities Market Weekly
China ESG Listed Companies Greater Bay Area Pioneer 50 2024 Five Star Gold Award for Social Responsibility of Listed
China Central Radio and Television (CCTV) Financial Programming Center Companies in China's Manufacturing Industry
Time Responsibility Forty Forum Think Tank
Listed Company Information Disclosure Grade A Evaluation Enterprise Standard "Leader" Certificate
Shanghai Stock Exchange (SSE) Shenzhen Furniture Research and Development Institute
Guangdong Manufacturing Single Champion Enterprises 2024 China Home Furnishing Champion List "Industry Leading
Guangdong Provincial Department of Industry and Information Brands"
Technology NetEase (Home)
Provincial Green Factory 2024 Service Model In Household Industry
Guangdong Provincial Department of Industry and Information NetEase (Home)
Technology
2024 2024 Jianggao Town Outstanding Company for Trash ” Guangdong May 1st Labor Award Certificate SeparationGuangdong Provincial Federation of Trade Unions People's Government of Jianggao Town Baiyun District Guangzhou CityHonors Top 100 Guangdong Manufacturing Private Enterprises 2024 Demonstration Enterprises for Veterans' EmploymentGuangdong Federation of Industry and Commerce Guangzhou Baiyun District Retired Soldiers Affairs Bureau，Guangzhou Private Science and Technology Park Management Committeeand Awards Guangzhou SME Digital Transformation City Pilot "Digital Traction Unit" 2024 Guangdong Extraordinary Employer Guangzhou Bureau of Industry and Information Technology Liepin
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SUSTAINABLE DEVELOPMENT MANAGEMENT Supervision The Group's Board of Directors supervises ESG matters reviewing and overseeing the Group Board of Directors implementation and outcomes of ESG efforts.Sustainable development is key to building a community with a shared future for mankind.As a national favorite furnishing
brand OPPEIN adheres to the vision of "making every home warm because of love" and the social responsibility concept of The Group Strategy and Sustainability Committee studies and advises on sustainabili-
"originating from and returning to society".We continuously optimizes its sustainable development management system Decision ty issues reviews substantive assessments decides on ESG management structure
aiming to long create-term shared value for stakeholders through improving internal management and enhancing external Strategy and Sustainability and strategy and ensures ESG governance integrates with the Company's strategic
information disclosure. Committee development.Management structure
The Group's ESG Working Group manages sustainable development matters identi-
The Group actively integrates sustainable development into daily operations enhancing its management structure based Management fies key issues sets division - aligned management goals per the strategy promotes
on "Supervision-Decision-Management-Execution". This aims to establish a top-down target-driven approach for setting ESG working group ESG efforts and links with the decision - making level.sustainability goals strategies and risk management. During the reporting period we advanced sustainability manage-
ment reforms formed an ESG working group and led ESG - related tasks. As of this report we've reorganized the "Strategy
Committee" into the "Strategy and Sustainability Committee" to handle sustainability issues risks and oversee goal imple- Execution The Group's departments and subsidiaries execute ESG matters implementing
mentation. sustainable development tasks per their roles and ESG goals ensuring the achieve-Departments and
subsidiaries ment of ESG management objectives.Management policy
The Group focuses on six areas:"Steady Operation Win-win Partnership Public Harmony Employee Empowerment
Pioneering Innovation and Natural Environment Protection". It fulfills its sustainable strategy and builds a green industry.The Group integrates sustainability into management strengthens governance partners with stakeholders for a top supply
chain fulfills social responsibilities views talent as key and enhances the work environment innovates customer - focused
while ensuring platform sustainability and follows green standards to build integrated production solutions.Steady Operation Win-win Partnership Public Harmony Employee Empowerment Pioneering Innovation Natural Environment Protection
Fairness Brightness Mutual Benefit and Trust Equity and Pragmatism Selecting Talents Only Utilizing Each Building Homes with the Spirit of Green as the Foundation Ecology
Cooperation Freedom Processing Together Harmonious Development One’s Full Potential Aircraft Manufacturing as the Pillar
001 003 005 007 009 011 013 Sustainable development strategy 014 015 017 019 021
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Strategy and goals
Environmental goals and actions Fulfilment of social responsibilities Governance system building
We align our sustainability strategy with the UN SDGs and are committed to the ten principles
of the Global Compact. OPPEIN advances China's "dual-carbon" OPPEIN drives social impact through its Public OPPEIN enhances sustainable governance by
In 2024 based on our business and industry we've upgraded our sustainability strategy system. strategy through clear environmental goals Welfare Foundation focusing on education strengthening oversight and risk management
and climate risk/opportunity assessments. We and rural revitalization. Simultaneously we systems ensuring informed decision-making.We've established five key areas: "Governance Environment Supply Chain Products and optimize processes boost clean energy adop- prioritize employee health via occupational We prioritize stakeholder engagement through
Services Employees and Society" and are actively carrying out sustainable practices. We've set tion and promote environmental awareness safety systems regular health checks safety transparent communication and improved
sustainability goals based on these core pillars and are taking actions to achieve them. to reduce energy consumption. By implement- training and wellness initiatives to safeguard disclosure practices maintaining operational
ing comprehensive waste and water recycling workforce rights. integrity.systems we drive resource circularity across
operations enhancing efficiency.
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Pillar United Nations sustainable OPPEIN Sustainable development goals Development Goals Progress in 2024
Optimizing sustainable Promoted reforms of the sustainability management structure set up an ESG working group with various departments formed a four - tier "supervision decision - making manage-
development management ment execution" framework and established sustainability management policies and objectives.Enhancing stakeholder Strengthened communication with stakeholders via channels like investor conferences staff congresses distributor conferences and supplier conferences. Held 3 performance
communication briefings with online views exceeding 130000 times.Enhancing shareholder
From 2024 to 2026 annual cash dividends will be at least RMB 1.5 billion (tax - included). In 2024 the dividend is set at RMB 1.502 billion.returns
Governance Enhanced risk and compliance Enhanced risk management and internal controls strengthened data compliance and regularly conducted legal training to boost employees' risk and compliance awareness.management Established internal control norms for high - risk areas with 24 annual legal training sessions covering 228 people.Strengthening the promotion of Promote righteousness culture: 67 internal training sessions 100% business ethics training coverage; 158 external anti - corruption tours covering 50 suppliers and 108 dealers;
business ethics 100% employee integrity commitment signing rate.Responsible marketing
Strengthen responsible marketing management in compliant ethical transparent and green marketing. Conduct partner visits.management
Safeguarding the quality of
information disclosure Rated A in the "SSE's 2023 - 2024 Main Board listed companies' information disclosure work evaluation" with six consecutive years of Grade A recognition.Promotion of environmental
Enhanced the environmental management system and passed the ISO14001 environmental management system recertification audit.management system certification
Carry out climate risk
identification and response Identify climate - related risks establish a list of climate change risks and opportunities and improve response measures.Increase the proportion of Expanded renewable energy projects at headquarters and bases generating 41060.38 MWh of photovoltaic power annually. Renewable energy usage reached 11.39% reducing
clean energy use CO2 emissions by 27400 tons.Reduce energy consumption Implemented energy management measures such as energy storage projects production equipment retrofits and office energy-saving steps at Qingyuan and Wuxi bases. The
and carbon emissions Qingyuan base achieved ISO50001 energy management system certification.Environment
Improvement of water
Implement measures to enhance process water recycling and household water conservation. Invest in water-saving initiatives and sewage treatment facilities.resource utilization
Increased investment in pollutant Dispose of organic waste gas and production dust compliantly. Entrust professional organizations to handle hazardous waste. Annual environmental investment is RMB70.28
prevention and control million.Establishment of green Practice environmentally friendly design clean production streamlined packaging and low - carbon transportation. Gradually enhance the product life cycle's green management
production system system. By the reporting period's end the Qingyuan base was certified as a national and provincial green factory and the Tianjin base as a provincial green factory.In-depth practice of the circular From ecological R&D and design to sustainable procurement clean production low - carbon logistics and trade - in campaigns the circular economy concept of "reduce reuse
economy model recycle" is deeply practiced.
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Pillar United Nations sustainable OPPEIN Sustainable Progress in 2024
development goals Development Goals
Strictly regulate the procurement Safeguarded the procurement process's green safety and integrity aspects. Achieved 100% legal traceability for raw materials and ENF plate certification rate. All suppliers signed the "Integrity
process Commitment Letter".Standardize sustainable Established a supplier SRM system for collaboration conducting regular ESG assessments and full - process ESG performance monitoring. We have 559 sustainable certified suppliers with
management of suppliers 100% compliance to the supply chain code of conduct. Conducted 75 supplier trainings annually including 1 ESG training for 152 suppliers.Supply chain
Empowering Dealer Development Adhere to the "OPPEIN Tree Roots Theory" and establish a dealer benefit - sharing mechanism. Regularly hold dealer empowerment summits to enhance their efficiency.Strengthening the development of Support and join industry association activities co - organize meetings and forums and participate in setting 69 home furnishing industry standards including 20 national 12 industry and 37
industry exchanges group standards.Promotion of quality management
Enhanced quality management system with ISO9001 and IQNET certifications for the Group and its subsidiary Aowei Decoration Material Co. Ltd.system certification
Ensure product safety and health Designed ergonomically researching safer materials improving processes and monitoring hazardous chemicals.Increase investment in scientific and
R&D investment: RMB 1.023 billion (5.41% of operating income) 1955 R&D staff (9.50% of total) 151 new patent applications.technological R&D and innovation
Committed to enhancing product accessibility through brand trust diversity affordability service availability supply chains delivery aftersales and industry support to better meet customer
Products and Enhancing product accessibility needs.services
Continuous improvement of the
Re-launched the "Integrated home furnishing gold butler service" won the "Service Model In Household Industry" honors.after-sales service system
Strengthening information security
Continuously invested in IT infrastructure achieving zero APPs regulated or taken down and no data breaches occurred.and privacy protection
Ensure reasonable labor and
Awarded "2024 Guangdong Extraordinary Employer" and "Model Enterprise for Ex - servicemen". Annual labor contract signing rate is 100% with no human rights or discrimination incidents.fair employment
Enhancement of Employee 100% of employees covered by performance appraisals and incentive bonuses; social security coverage is 100%. Invested RMB95 million in employee welfare aided 45 employees in difficulty
Compensation and Benefits and consoled 9 sick or mourning employees.Emphasis on staff development
Focused on "dual - engine" talent and system building. Employees received 685787 training hours (33.31 hours/person - average) with RMB7.137 million invested in vocational training.and training
Employees and
Protecting the occupational health Annual lost - time injury rate dropped by 33.21% year - on - year. Employee health check - up rate and occupational hazard detection rate both 100%. Conducted 104 fire drills with 100% hazard
society
and safety of employees rectification. EHS trained 175996 people with 100% coverage.Open channels for employees to Established OA monitoring and feedback platform performance E system and other communication channels. Received 5087 employee suggestions up 15% year - on - year with a 68%
communicate their suggestions adoption rate. 2027 Class A suggestions were implemented. Employee satisfaction rate is 79.35% dedication rate 80.01%.Increasing public investment in Continued rural revitalization and educational charity activities. OPPEIN Public Welfare Foundation donated RMB 15.90 million annually including RMB 5.95 million for education and RMB 5.7
community development million for rural revitalization. The Group Chairman donated RMB 5.3 million for flood relief and post - disaster reconstruction in Meizhou.
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Stakeholder communication
OPPEIN values stakeholder communication building a strong internal and external platform with a transparent mecha-
nism. During the reporting period OPPEIN maintained close contact with key stakeholders such as shareholders inves-
tors government bodies employees customers suppliers dealers partners and community members through diverse
channels actively understanding and responding to their expectations and needs.Interested party Government and regulatory bodies Shareholders and Investors Customers Employees Suppliers Distributors and other partners Community and environment
Community involvement
Corporate governance Occupational health and safety
Sustainable development Labor compliance and equal
governance Corporate governance opportunityClimate change risks and
Risk control and compliance Sustainable development Product safety and quality Climate change risks and opportunities Training and career development
Intellectual property protection governance Supplier management Information security and privacy opportunitiesGreen production Occupational health and safety
Climate change risks and Risk control and compliance Business ethics protection Water use and managementProduct safety and quality Labor compliance and equal
Principal subjects opportunities Business ethics Climate change risks and Climate change risks and Energy consumption and Customer rights protection opportunity
Water use and management Climate change risks and opportu opportunities opportunities managementof concern Information security and privacy Compensation benefits and
Energy consumption and nities Responsible procurement Responsible marketing Raw material use and managementprotection performance
management Carbon emissions management Product safety and quality R&D and innovation Carbon emissions managementResponsible marketing Employee communication and
Carbon emissions management Product safety and quality Occupational health and safety Labor compliance and equal Pollutant prevention and controlRaw material use and grievance
Pollutant prevention and control R&D and innovation Raw material use and manage- opportunity Waste disposalmanagement
Occupational Health and Safety Occupational health and safety ment Green production
R&D and Innovation Circular economy
circular economy Ecosystem and biodiversity
conservation conservation
SRM platform
Disclosure of information Official website official Workers' congress Official website official
Regulatory assessment Supplier conference Official website official microb
General shareholders' meeting microblogging and customer Employee feedback service center microblogging and customer
Regular submission and mailing of Supplier visits logging and customer service
Investor networking events service hotline Staff training service hotline
Communication channels information or reports Supplier training hotlineSSE Interactive Platform Social media interaction Employee activities Disclosure of information
Special meeting Public tender Public welfare activities
and methods Official website and investor Customer complaints and Enterprise microsoft group Dealer conferenceQuestionnaire Questionnaire Disclosure of information
relations hotline or email callbacks Dedication and satisfaction Dealer tour
Disclosure of information Field visits
Questionnaire Satisfaction survey surveys Dealer training
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Identification and assessment of material issues Number OPPEIN 2024 material issues
OPPEIN is guided by the GRI Standards and SSE guidelines will continue to 17 Product safety and quality
identify evaluate and disclose sustainability issues for 2024. Building on the
1 Corporate governance
2023 materiality analysis results the company aims to establish issues of
double materiality for both the Group and stakeholders. 2 Sustainable development governance
20 Customer rights protection
OPPEIN Double Materiality Issues Matrix 3 Risk control and compliance
Core issues
High 2 13 Green production
1013
10 Carbon emissions management
Recognize 20
8 17 14 Circular economyConducted policy and peer - benchmarking
analyses to identify 27 sustainability issues 14 11 Pollutant prevention and control
across governance environment supply chain 12 6 11 1
9 Raw material use and management
products/services and employees/society
forming the 2024 issue database. 23 9 8 Energy consumption and management
7 4 Business ethics
22 3 15 Responsible procurement
27 24 25 18 4 5 Responsible marketing
26 18 R&D and innovation
Valuation
1916
15 6 Climate change risks and opportunities
Collected input from stakeholders and 21
12 Waste disposal
sustainability experts to assess these issues' 5
"financial" and "impact significance". Important 25 Compensation benefits and performance
issues
23 Occupational health and safety
7 Water use and management
16 Supplier management
24 Labor compliance and equal opportunity
22 Training and career development
Materiality of financial impacts High
Disclosure 26 Employee communication and grievance
The Board of Directors reviewed the materiality 21 Information security and privacy protection
assessment resulting in a double - materiality Governance Environment Supply chain Related
matrix to guide the Group's sustainability 19 Intellectual property protection
management and reporting. issuesProducts and services Employees and society 27 Community involvement
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Materiality of sustainability impacts001 003 005 007 009 011 013 015 017 019 021
01 THEME：SHINING AT 30 SETTING OFF AGAIN
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Strive forward with determination
Over three decades OPPEIN has advanced design innovation and product quality through global collaborations deliver- 2024
ing customized solutions and robust after-sales services that earned widespread acclaim. Crossed the glaciermeet at the top
Comprehensively marching to the
Guided by its vision to become a world-class home furnishing leader OPPEIN accelerates internationalization under the top of home furnishing industry
Belt and Road Initiative exporting products globally as a hallmark of Chinese manufacturing excellence. writing a new chapter of OPPEIN's
glory.Thirty years of progress
Founded in 1994 OPPEIN has pioneered home furnishing innovation for three decades through collective perseverance. 2017 A-share listed
Upholding its original vision the Group continues to forge ahead with resilience and groundbreaking spirit. Listed on the Shanghai Stock Exchange with
stock code 603833 OPPEIN ranks No.1 in
2000 Broke through RMB 100 million mark China's top 500 home furnishing brands
with a value of RMB23.955 billion. It also
OPPEIN launched the "2000 functional-
1994 Constructed capabilities and ranks 406th among China's top 500 private
embarked on a voyage ized kitchen cabinets" series a gift to the manufacturing enterprises.new century and was recognized as a
Established in 1994 as Guangzhou recommended product by the Guang-
Kangjie Kitchen Cabinet we pioneered dong Consumer Council during 2000 -
China’s "whole kitchen" concept.Intro- 2001. Annual business income broke 2021 Navigated and leading
duced China’s first industrialized through RMB 100 million.modern kitchen cabinets initiating the Bacame the first 100 billion market
"kitchen revolution." value home furnishing enterprise and
reached 20 billion in sales revenue.
2004 Landed overseas
The brand now has nearly 700
1996 Brand new shopping malls nationwide and 2022 Broke through
Launched national consumption exports to over 20 countries like
the US Japan and Canada. Winning the 7th Guangdong Provin-guidelines and expanded franchise cial Government Quality Award for
networks in Shenzhen Dongguan excellence in leadership quality
and other key cities in China. innovation branding and efficiency.Also got awarded "National Industrial
Design Center" title becoming a fifth
batch of national industrial design
2007 Established a strong position centers member.
1999 Dominated OPPEIN became the industry's first "Chinese
Built China’s first kitchen cabinets chain system Famous Brand Product" brand and won the "Lead-
establishing franchised stores in 100+ cities and ing Kitchen Cabinets company" title for two years
emerging as a market leader. in a row the annual sales exceeded RMB1 billion.
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OPPEIN Manufacturing 2025 Strategy
Brand development matrix
In 2015 OPPEIN officially launched its "Manufacturing 2025" strategy integrating internet big data and
AI-driven manufacturing. By digitally connecting all processes—including sales R&D production and A brand development matrix covering multiple consumer groups has been established to fully meet differentiated market
logistics—the initiative ushered in an era of "AI-powered factories" characterized by "what you see is what demands.Main products include kitchen cabinets whole-homecustomization wardrobes bathroom vanities wooden
you get what you feel is what you desire design equals manufacturing and manufacturing equals service." doors metal doors and windowsarmored doors furniture kitchen appliances softfurnishings and integrated large-scale
home furnishings.High-end brand
Mid-to-high-end brand
Affordable luxury
fashion brand
Integrated whole-home
brand
National brand
Core competitiveness Doors & windows
brand
Strong Brand Influence
【Brand first】 Furniture coordination
Empowered by informatization Integrated comprehensive
home furnishing
A robust end-to-end customization and intelligent
sales system technologies Product matrix
【Marketing as the key】 【Digital Intelligence as the sword】
Bathroom vanities
Wardrobes Wooden doors
Multi-point
Dual-wing
Core-driven
leadership strategy collaboration
Kitchen cabinets Soft furnishings
Kitchen appliances
Mature efficient Strong R&D capabilities and
operational systems product innovation
【System as the shield】 【R&D as the priority】
Metal windows & doors
Armored door
Advanced flexible large-scale
non-standard customized
production capabilities
【Customization as the foundation】
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Leading the industry and win together Standard nature Editor-in-chief Standard name
Limits of Formaldehyde Emission from Indoor Decoration Materials Artificial
Over the past 30 years OPPEIN has maintained its leading position in the customized home furnishing industry. The Group Boards and their Products.emphasizes the mutual development of the home furnishing industry and aims to collaborate with industry peers. By Compulsory national
participating in the formulation of industry standards and engaging in industry conferences and forums OPPEIN actively standard National Odor Classification and Evaluation Methods for Artificial Boards and Products
enhances industry standards. The Group is dedicated to promoting the "Integrated Home" strategy through dealer training Artificial
and industry exchange conference exploring new development models and driving the industry's high-quality develop- Board Standard Classification of Volatile Organic Compound Emissions from Artificial Boards
ment and transformation and upgrading of home furnishing consumption industry. Committee and Their Products
Plywood and Blockboard with Impregnated Film Paper Finish
Helping partners grow Recommended Furniture fittings Strength and durability of hinges and their components
national Hinges with straight axial rotation of sheep weights.Adhering to the "OPPEIN tree root theory" we
Case: Planning for the Future: Starting a New Chapter standard
implement the "Integrated Home Strategy" General Technical Conditions for Wooden Furniture
establishing a comprehensive home service National
network and mature service mechanism. We In March 2024 OPPEIN's Annual Marketing Summit was Furniture
share industry dividends with dealers and held at Baiyun International Century Hall. Global dealers Standard
Kitchen Furniture: Matching Dimensions
enhance market resource investment. By optimiz- gathered themed "Crossing the Industry Glacier Meeting
Committee
ing policies in terminal operations subsidies the Top of Integrated Home" to focus on trends plan the Residential Kitchen Facilities and Equipment
channel support and marketing we help small future and start a new chapter.and medium-sized partners to meet consumer Edge Banding for Furniture
demand changes and industry challenges. Industrial
standard China Light Industry General Technical Requirements for Smart Elderly Home Products
Information Center (CLIIC)
As an industry trendsetter OPPEIN's 30th anniversary announcements mark its leap to high - quality development and its
role in reshaping the customized home furnishing ecosystem and service standards. In the future OPPEIN will tackle
consumer pain points innovate service models and provide excellent services at every customer touchpoint. It will lead
the pan - home industry into a new "service" and "reputation" - oriented era enhancing home life for all users.Case: OPPEIN attended China International Building Exp
*OPPEIN tree-root theory
As a global leading event in the integrated Home construction and decoration industry the China International
2024 Performance Win-Win Industry Cooperation
Building Exp (Guangzhou) is the largest exhibition in China and even globally. On its 30th anniversary OPPEIN
attended the CIBE to explore industry trends with other home furnishing enterprises discussed effective
Participated in formulating standards As a leader in customized home furnishing we drive industry devel- strategic approaches to address consumption pain points and jointly seek new business models for the indus-
69 opment solve pain points and explore paths for high - quality try's high quality development.
growth. We support government policies and industry associations
among them national industry enhancing industry quality by participating in standard - setting
standards standards forums. We had participated in 69 standard-setting activities (20
20 12 national standards 12 industry standards 37 group standards).
During the last yearwe participated in 10 standard setting activities，Newly formulated standards reaching a 100% year-on-year growth rate and attended 2 industry
10 exchange meetings.
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Case:OPPEIN 30 years thanksgiving and domestic demand promoting summit was successfully held in Guangzhou Case: Launching the initial year of integrated home service upgrading program
In May 2024 OPPEIN 30 years thanksgiving and domestic demand On its 30th anniversary OPPEIN reinforced its
promoting summit was successfully held in Guangzhou. OPPEIN "Integrated Home Strategy" marking a new peak and
Chairman Yao Liangsong engaged in a summit dialogue on promot- the start of its intergrated home service upgrading year.ing domestic demand offering new perspectives on how home Committed to this strategy OPPEIN and its partners
furnishing enterprises can drive domestic demand and forge new tackle market challenges jointly amidst fast changing
growth paths through innovation under the new economic norm. trends.World journey grateful to you
OPPEIN actively builds an overseas offline store network
Over 30 years OPPEIN has established five intelligent production bases in Tianjin Qingyuan Wuxi Chengdu and Wuhan with a total drives sales innovation and wins media acclaim. After 30
area of 3.15 million square meters radiating high-quality production capacity nationwide and serving globally. Currently OPPEIN has years of overseas expansion it has established a lar ge
over 7900 global stores (including over 100 overseas dealer stores) selling products in 118 countries across six continents and serves global sales network with over 100 stores and show-
more than 10 million families. Adhering to the philosophy of "With home with love with OPPEIN" the Group will continue to serve rooms in 60 countries across Europe America the
Chinese families and create better home lives. Middle East Asia and Australia. Its products are exported
to more than 130 countries earning recognition from
Build OPPEIN into a global brand global partners. During the reporting period OPPEIN
OPPEIN's history reflects a Chinese manufacturing enterprise's active response to the "going out" national development strategy. Follow- obtained Customs AEO AdvancedEnterprise Certifica-
ing the path of "Exploration - Breakthrough - Rooted - Fractal" OPPEIN moved from the exploration stage of "going out" to the break- tion facilitatinginternational trade and enhancing
through stage of "coming in" by acquiring Italy's FORMER and then to the rooting stage by establishing overseas stores in Canada the market competitiveness.Customs AEO Advanced Enter-
UAE the UK the US and Panama over the past two years. OPPEIN is advancing toward becoming a globally renowned "world's OPPEIN" prise Certification facilitating international trade and
and a "century-old store". enhancing market competitiveness.
1994 2022 February 2024
Chairman Yao Liangsong founded OPPEIN's predecessor "Kangjie Acquired Italian furniture manufacturer FORMER and The first North American wholesale flagship store opened in
Kitchen Cabinets" introducing Europe's "whole kitchen cabinets" launched the miForm brand marking a strong entry into Toronto attracting over 100 guests and earning a congratulatory
concept to China. China's high - fashion home furnishing market and aligning letter from Canadian counterparts.with OPPEIN's internationalization strategy.
2004 2023 June 2024
OPPEIN opened its first overseas franchise store in Los Angeles Overseas sales revenue reached a 46.5% year-on-year grow rate. Panama's new president José Raúl Murillo attended the flagship store
exporting products to over 20 countries including the US Japan opening ceremony in Panama. As a key American market OPPEIN gained
Canada and Australia. local partner recognition and signed contracts leveraging its integrated
design advantages.
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Case: "Good Life Renewal Season" with Xinhua News
Customs AEO Advanced Enterprise Certification
In January 2024 OPPEIN and Xinhua News Agency Client
The Customs AEO certification the highest recognition of enterprise City Channel jointly signed the "Better Life Renewal
credit management ability and trade security highlights the Group's Season" agreement at OPPEIN's headquarters. As a
core competence in internal control risk management and supply leader in China's customized home furnishing industry
chain security. This certification allows the Group to enjoy priority in OPPEIN helps Xinhua News Agency Client City Channel
customs clearance reduced inspection rates and other benefits launch the "Better Life Renewal Season" exploring high
effectively improving international trade efficiency lowering export quality development through innovation and quality
costs and enhancing international competitiveness and brand value. upgrades to enhance Chinese people's lives.Love in the family stretches on
OPPEIN since its establishment has adhered to the "family and love" corporate culture caring employees' work and life
With home with Love with OPPEIN and actively conducting cultural activities to provide humanistic care. The labor union innovates cultural and sports activi-
The love home culture is central to OPPEIN. The Group integrates the concepts of "home" and "love" into all aspects of its ties to enhance employees' happiness and sense of belonging. Besides regular holiday care OPPEIN organizes special
operations helping to create a better life. It actively responds to national calls by providing practical benefits to turn the activities like summer parent-child camps and collective weddings.OPPEIN's humanistic care includes helping those in
dream of quality homes into reality for more people. Diversified cultural activities offer timely care for employees making difficulty such as the "Peace Fund" and injury visits and welfare benefits like birthday and festival gifts health checkups
them feel the warmth of a family. and special awards for long - serving employees.Contributing to a better life
Launched the "Good LifeRenewal SeasonJoint Benefit" activity with three major benefits.Introduced the "30th Anniver-
sary Phenomenal" May Day Home Goods Renewal Festival in response to the national trade-in program helping consum-
ers renew their homes without worry. OPPEIN also launched the 30th Anniversary Gold Member Benefits and the "Green
Home Renewal Inclusive Action" conducting related activities in 20 cities nationwide to assist people in home renewal and
achieving a quality home life.
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GOVERNANCE
02 OPPEIN has established a comprehensive corporate governance system. Under the principles of independent operation mutual oversight and effective collaboration among governance bodies we continuously improve management policies to effectively supervise business ethics matters including anti-corruption fair compe-
tition and responsible marketing. This enhances risk control and compliance
management ensuring stable operations and creating long-term value for share-
holders customers employees and other stakeholders.
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Governance practices
2024 Performance Shareholders' Meeting
Shareholders' Meeting The Shareholders’ Meeting is the authority of the company. In accordance with the＂
2 Guidelines for the Articles of Association of Listed Companies＂ the ＂Rules for Share-holders’ Meetings of Listed Companies＂ and the ＂Articles of Association of the
CORPORATE GOVERNANCE Company＂ the Group has formulated the ＂Rules of Procedure for Shareholders’ Among themExtraordinary Meetings of OPPEIN Home Group Inc＂. The Shareholders’ Meeting exercises its
General Meeting authority within the scope defined by laws regulations and corporate governance
A comprehensive and scientific corporate governance mechanism is the foundation and assurance for the sustainable and
1 systems. The convening conduct voting and resolution procedures of the Sharehold-healthy development of enterprises. The Group considers corporate governance as a long-term systematic project and ers’ General Meeting comply with relevant laws regulations regulatory documents
continuously improves its corporate governance structure in strict accordance with the requirements of various laws and the provisions of the Articles of Association of the Company. The qualifications of
regulations and normative documents taking into account the actual situation of the Group. We establish and improve attendees and the convener of the Shareholders’ General Meeting are legally valid Shareholders' Meeting and the voting procedures and results of the Shareholders’ General Meeting are
the standardized operating mechanisms enhance the responsibility for information disclosure and ensure the healthy legally valid and effective.and stable operation of the Group. Reviews Proposal
15 The Shareholders’ Meeting adopts a combination of on-site registered voting and online voting to ensure that all investors can fully exercise their rights safeguarding
Governance structure shareholders’ rights to be informed to participate and to vote. Additionally when
deliberating on major matters affecting the interests of minority investors the Share-
The Group has established a corporate governance structure comprising the general meeting of shareholders the Board holders’ Meeting separately counts the votes of minority shareholders to fully protect
of Directors with its special committees the Supervisory Committee and the management of the Company. We adhere to their legitimate rights and interests. During the reporting period the Group convened
Shareholders’ Meetings twice reviewing a total of 15 proposals.the requirements of the"Company Law of the People’s Republic of China" the "Securities Law of the People’s Republic of
China" the "Code of Governance for Listed Companies" the "Rules Governing the Listing of Stocks on the Shanghai Stock
Exchange" and the "Guidelines for Self-discipline and Supervision of Listed Companies of the Shanghai Stock Exchange". 2024 Performance Board of Directors
We also comply with the provisions of the "Articles of Association of OPPEIN Home Group Inc." to regulate its operation and
Board of Directors The Board of Directors plays a pivotal role in the Group’s decision-making for major
formulate the basic management system that covers corporate governance including the "Rules of Procedure for the matters. In compliance with the Company Law and the Articles of Association of the
General Meeting of Shareholders of OPPEIN Home Group Inc." the "Rules of Procedure of the Board of Directors of OPPEIN Meetings Company the Group has formulated the "Rules of Procedure for the Board of Directors"
Home Group Inc." the "Rules of Procedure of the Board of Supervisors of OPPEIN Home Group Inc." and the "Working 9 and the "Work System for Independent Directors". The Board comprises 7 directors
System of Independent Directors of OPPEIN Home Group Inc." We convene regular shareholders’ meetings Board of including 4 non-independent directors and 3 independent directors. During the report-Board of Directors'
Directors’ meetings and Board of Supervisors’ meetings to make management decisions and management decisions ing period the Board convened 9 meetings reviewing a total of 40 proposals.and monitor operations. Resolution Review In advancing Board diversity the composition of the Group’s Board reflects a multi-di-
40 mensional balance across age professional expertise and cultural backgrounds. Board members range in age from 44 to 60 years old with cross-sector experience
spanning mechanical manufacturing aircraft manufacturing engineering law and
Strategy and Sustainability
Shareholders' Meeting Management Committee business administration. Several directors possess diverse management experience
across industries. Through establishing specialized committees and implementing an
independent director mechanism the Group ensures that strategic decision-making
Board of
Supervisors Compensation and Assessment
balances innovation with risk management fully embodying the empowerment of
Committee inclusive governance for long-term value creation. Moving forward the Group will
continue to optimize Board diversity initiatives and evaluation mechanisms strength-
Board of Directors ening the integration of global perspectives and industry insights.During the reporting period independent directors accounted for 43% of the Board
Nomination Committee with their qualifications number and proportion aligning with the "Administrative
Measures for Independent Directors of Listed Companies" and other relevant regulato-
ry requirements. Additionally the Company amended its Articles of Association during
Senior Executives Audit and Risk Control Committee the reporting period to revise the Board’s structure including the creation of a new
employee representative director position. This representative was elected by the
Company’s Employee Congress fostering deeper integration of corporate develop-
ment and employee interests at the strategic decision-making level and enhancing
*Corporate Governance Chart corporate governance capabilities.
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2024 Performance Board of Supervisors
Responsibilities of Specialized Committees
Board of Supervisors The Board of Supervisors has formulated the "Rules of Procedure for the
Meetings Board of Supervisors" to clarify its deliberation methods and voting proce-
Specialized
committee Key Responsibilities Members
6 dures ensuring operational efficiency and scientific decision-making. The Supervisory Board oversees corporate governance major matters financial
Supervisory Committee's status and the legality and compliance of the performance of duties by Oversee and evaluate internal and external audit activities
Chairman:
Deliberation on the Proposal directors managers and other senior executives thereby promoting lawful Review the company’s financial information and its disclosures
Jiang Qi*
Assess the effectiveness of the company’s internal control and risk
16 and standardized operations and safeguarding the interests of the Compa- Audit and Risk management systems Control Members: ny shareholders and employees. The Board of Supervisors comprises 3 Coordinate communication among management internal audit
supervisors including 2 shareholder representatives and 1 employee repre- Committee
Li Xinquan*
departments relevant departments and external audit institutions etc. Zhang Xiuju
sentative. During the reporting period the Group convened 6 Supervisory
Board meetings and reviewed a total of 16 proposals.Providing recommendations to the Board of Directors on the size and
2024 Performance Senior Executives composition of the Board based on the company’s operational
activities asset scale and shareholding structure Chairman:
Female Executive The Executives is responsible for the operational management of the Researching the selection criteria and procedures for directors and Li Xinquan*
Ratio Group’s production and business activities implementing resolutions of
managerial personnel and proposing recommendations to the Board of
the Shareholders’ General Meeting and the Board of Directors executing Directors40% Members: annual business plans and investment proposals formulating internal Nomination Conducting extensive searches for qualified candidates for directors and Committee managerial roles Tan Qinxing
regulations and exercising other authorities granted by the Articles of Reviewing candidates for directors and managerial positions and Lu Xiaodong*
Association or the Board of Directors. During the reporting period 2 out of proposing recommendations
the 5 senior executives in the Group were female. Reviewing other senior management personnel requiring Board
appointment and proposing recommendations
Responsibilities of specialized committees
The specialized committees of the Group’s Board of Directors fulfill their duties in accordance with the Articles of Associa- Reviewing and approving matters related to the compensation of Chairman:
tion and conduct specific operations under their respective working rules ensuring scientific decision-making and directors and executives as well as the cancellation of stock options Li Xinquan*
standardized governance of the Board. All committee members are directors with their selection achieving a balanced Approving the company’s annual remuneration plans formulated by
diversity in skills experience and perspectives. In the Audit and Risk Management Committee Nomination Committee Compensation and the Group’s management Members:
and Compensation and Assessment Committee independent directors constitute two-thirds of the membership and Assessment Developing assessment criteria for directors and executives and Jiang Qi*
serve as conveners. The convener of the Audit and Risk Management Committee is a professional in accounting. During the Committee conducting evaluations Yao Liangbai
reporting period the Group convened 4 meetings of the Audit Committee meeting of the Nomination Committee 1 meet- Formulating and reviewing compensation policies and plans for
ing of the Compensation and Assessment Committee and 1 meeting of the Strategic Committee reviewing a total of 12 directors and executives
proposals.
2024 Performance Conducting research and providing recommendations on the compa- Chairman:
ny’s long-term development strategies major investment decisions
Convening of the Audit Nomination Compensation and Strategic Yao Liangsong
Strategy and and environmental social and corporate governance (ESG) initiatives
Committee Committee Assessment Committee Committee Sustainability Analyzing major investment and financing proposals requiring Board Members:
4 1 1 1 Management approval under the Articles of Association and submitting recommen- Yao Liangbai
Committee dations Lu Xiaodong*
Total Audit
Resolutions Note 1: * is an independent board member of the Group;
12 Note 2: On April 24 2025 at the 22nd meeting of the Board of Directors' fourth session the Board approved renaming the Audit Committee to the Audit and Risk Management Committee and the Strategy Committee to the Strategy and Sustainability Committee.
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Executive compensation management Investor relations
OPPEIN has formulated its Compensation Management Regulations and Director & Executive Compensation and Evalua- The Group adheres to an“investor-centric”philosophy and has established institutional frameworks including the OPPEIN
tion Measures in compliance with the Corporate Governance Guidelines for Listed Companies and its Articles of Associa- Home Group Inc. Market Value Management Regulations the Investor Relations Management Guidelines and the Media
tion. The company has established a compensation and performance management system aligned with position value Communication and Crisis Management Protocols. These frameworks standardize investor relations practices safeguard
corporate development and individual performance with clearly defined evaluation procedures for directors and execu- investor interests and ensure transparent communication channels.The Group has introduced the "Shareholder Dividendtives. The Board's Remuneration Committee conducts annual reviews of compensation matters with packages for Return Plan for the Next Three Years (2024-2026)" and the "2024 Action Plan for“ Enhancing Quality Efficiency and Share-directors (non-independent) and executives submitted to the Board or Shareholders' Meeting for final approval after holder Returns" reaffirming its commitment to high-quality development and value creation. These initiatives enhance
committee deliberation. transparency in profit distribution decisions actively reward shareholders and protect investors’ legitimate rights.During the reporting period OPPEIN further optimized its executive compensation and incentive system implementing a
three-dimensional evaluation mechanism linking remuneration to individual performance and functional objectives for
2024 Performance
directors (non-independent) supervisors and senior management. Notably ESG performance was incorporated as a key Investor communication
assessment metric effectively motivating innovation and transformation while driving both high-performance targets and Meetings for the presentation The Group values input from every investor and actively organizes variouscomprehensive improvements in environmental social and governance dimensions. This approach has enhanced opera- of the results online and offline engagement activities including the“ SSE e-Interac-tional efficiency and promoted sustainable development. 3 tion” platform investor briefings shareholder meetings and roadshows. These initiatives facilitate multi-level and multi-channel engagement
Decision-making Online views of the results with investors maintaining open communication channels conveying Board of Body
Directors corporate value to the capital markets and fostering investor understand-presentation ing and recognition. This approach builds long-term stable and mutually
Compensation and Organizational and 133，000 beneficial relationships while strengthening the Group’s market reputa-
Assessment Committee Coordination Institute tion. The Group has implemented an investor feedback mechanism to
Other investor networking events proactively address market concerns. It initiates contact with investors to
Implementation and
Human Resources Center Execution Body 3 solicit feedback relays suggestions to senior management and ensures
two-way information flow between internal and external stakeholders.*Remuneration management organizational structure Number of responses to investor During the reporting period the Group conducted 3 earnings presenta-
Information disclosure questions on the "SSE e-Interaction" tions where the Chairman independent directors CFO and Board Secre-
platform tary interacted with investors via live streams and Q&A sessions. These
The Group highly values information disclosure actively safeguards investor rights and improves disclosure quality. It live-streamed events garnered over 130000 views demonstrating robust
adheres to developing an investor - oriented system while fulfilling obligations. Complying with laws like the "Code of 42 investor engagement.Corporate Governance for Listed Companies" it has internal policies such as the "OPPEIN Home Group Information Disclo-
sure Management Regulations". A digitalized process ensures comprehensive control and traceability for truthful
accurate timely and complete disclosures. The Group manages insider information registrations and reporting. It also
prioritizes investor needs enhancing disclosure readability and effectiveness for better transparency.During the reporting period the Group executed high-quality information disclosure practices publishing 145 announce-
ments and online documents including 4 periodic reports (e.g. annual reports) and 1 ESG report actively communicating
corporate developments and operational outcomes to the market. Notably the Group received a Grade A rating in the "SSE e-Interactive" platform: https://sns.sseinfo.com/
*2023-2024 Information Disclosure Evaluation for SSE Mainboard Listed Companies* (with only 18.95% of SSE-listed
companies achieving Grade A). Furthermore the Group has been awarded the SSE’s Grade A in information disclosure for Investor Hotline: 020-36733399
six consecutive years (a distinction held by only 108 A-share companies representing 4.81% of the total).Investor Relations Email: oppeinir@oppein.com
2024 Performance
Maintaining an“A”grade in SSE information
disclosure for six consecutive years
*Investor Communication Channels
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Case: “Understanding Our Listed Companies ? A Tour to the Greater Bay Area” OPPEIN Session RISK AND COMPLIANCE CONTROL
To actively adapt to the challenging market environment and prevent major risks the Group is continuously increasing its
In October 2024 the Group worked with the China Securities Investor Services Center and others to hold the efforts toward risk management and internal control systems. We develop risk management strategies promote the
“Understanding Our Listed Companies ? A Tour to the Greater Bay Area” OPPEIN Special Session and internal audit process identify and manage the risks involved in the operation process and focus on the environmental
partnered with the Shanghai Stock Exchange for the“ I Am a Shareholder” visit to OPPEIN. These efforts social and governance (ESG) related risks to promote sustainable and stable operations.allowed more minority investors to tour the company understand its operations better and improved investor
relations management promoting the Group’s high - quality development. Risk management
The Group and its subsidiaries strictly follow the "Risk and Opportunity
Management System of Oppein Home Group Inc." and" Risk and Opportunity Risk factor
Identification and Evaluation Management Process of Oppein Home Group identify
Inc." "Internal Control Management System of Oppein Home Group Inc." and
other internal system documents and risk management processes focusing on
the construction of risk and compliance control system and timely updating
the domain map of the group's risk and compliance control structure. Risk manage-
With the goal of risk prevention and efficiency enhancement we integrate risk ment planning
management into our business processes and clarify the departments respon-
sible for risks and opportunity management. The Audit Committee supervises
and evaluates the internal control of the company. The audit department and
the supervision Department have established a self-evaluation working group
Enhancing shareholder returns Risk response which is responsible for carrying out internal checks and supervision continu- assessment
OPPEIN has maintained a strong shareholder return commitment since its IPO continuously improving cash dividend ously identifying and resolving problems and improving the overall collabora-
payouts in line with capital allocation and operational needs. In compliance with the "Notice on Further Implementing tion capabilities and risk resistance of the group. Each department is required
Cash Dividend Distribution by Listed Companies" and "CSRC Guideline No. 3 on Cash Dividends" we have established a to establish methods for identifying and responding to risks and opportunities
sound dividend policy that emphasizes transparent communication with investors particularly minority shareholders. As identify the risks present in the department and record the results in the "Risk Risk operation
the first in our industry to publish "Quality-Efficiency Reports" implement a "Three-Year Fixed-Amount Dividend Plan" and and Opportunity Identification and Analysis Assessment Form" and compre- monitoring
develop market value management mechanisms we stabilize returns through share buybacks and structured dividend hensively identify and respond to risks and opportunities in production and
programs. During the reporting period we amended our Articles of Association to formalize dividend policies and management activities.launched the "2024-2026 Shareholder Return Plan" committing to annual cash dividends of no less than RMB 1.5 billion We set strategic goals based on the group's risk appetite and adopt the risk
(pre-tax). management and control process of "risk factor identification - risk manage-
ment planning - risk response assessment - risk operation monitoring" striving *Closed-loop management of risk events
Key Performance 2024 2023 2022 to achieve the closed-loop management of risk events.Cash Dividend per Share (RMB) (pre-tax) 2.48 2.76 1.77
Total Cash Dividends (RMB 100 million) 15.02 16.70 10.75
Cash Dividends as % of Net Profit
57.80%55%40%
Attributable to Parent Company
Shareholders
*The Group's cash dividends in the last three years
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Internal control Employee rights protection systems covering recruitment compensation Human resources Risk of labor and evaluations were refined complemented by regular satisfaction
management relationship
The Group’s self-assessment of internal control is divided into 24 modules based on guiding norms such as the "Basic surveys and multi-channel communication.Standards for Enterprise Internal Control" and "Internal Control Guidelines for Listed Companies on the Shanghai Stock
Exchange" as well as the group’s business characteristics and internal control construction status. Among these modules Safe production Risks of occupa- Carry out various emergency drills regularly organize physical checkups
there are 8 major modules that are ESG-related high-risk areas including Group Governance Contract Management Sales and tional health and for employees eliminate occupational disease hazards in the workplace
environmental
and Collection Management Procurement and Payment Management Quality Management Research and Development safety and avoid work-related injuries to the greatest extent.management
Management Human Resources Management Safe Production and Environmental Management. Corresponding internal
control management measures or standards have been established for these modules. Safe production improve the resilience to climate change by promoting the group's energy
and Risks of climate conservation and consumption reduction introducing renewable energy
environmental change and other measures.management
ESG-related internal Key risk factors
control modules Management and control measures
Note: For information on climate change risks management please refer to the "Addressing change change" section of this report.Improve the company's institutional system standardize the company's
Risk of 2024 Performance Capacity Building
Corporate production operations improve the corporate governance structure and
corporate
governance conduct management decisions and operational supervision in
governance The Group continuously strengthens risk and compliance capabilities through accordance with regulations. Legal training sessions enhanced operation and maintenance of risk and compliance platforms.Regu-
conducted lar legal training sessions are conducted covering diverse topics such as legal
Establish a work order that maintains integrity anti-corruption and 24 interpretation contract review techniques case law analysis and key consid-Contract Risk of righteousness and incorporate the commitment to honest cooperation
management business ethics into procurement contracts regularly conduct internal audits of business erations in advertising contract scrutiny. These initiatives ensure employees
ethics and strengthen inspections of suppliers and dealers. Training hours stay informed of evolving regulatory requirements and bolster legal acumen
47 underpinning the Group ’s robust development with a strong legal framework.
During the reporting period the Group organized 24 legal training sessions
Sales and Strengthen the risk prevention and daily management of dealers' Risk of dealer business timely judge the dealers' operating conditions conduct regular Number of people totaling 47 training hours reaching 228 participants. Additionally directors receivables management assessments on them and timely deal with their violations. covered supervisors and senior executives participated in specialized programs hosted
228 by stock exchanges the listed companies association and internal depart-ments focusing on periodic report preparation M&A compliance and the
Create a supply chain system that matches the integrated home furnish-
Procurement and Risk of updated Company Law. These efforts systematically elevate compliance ing model strengthen the access review and performance assessment of
payables supplier suppliers and continue to practice responsible procurement. leadership across the organization.management management
Case: Internet advertising risk and compliance training
Build an integrated quality assurance system carry out a series of quality
Quality Risk of product reform projects optimize the quality management process and improve
management quality the management of the product life cycle including R&D production In June 2024 the Group Legal Department conducted training on
logistics and sales. risks and compliance issues in Internet advertising and relevant
personnel from the e-commerce marketing department participat-
Improve the R&D incentive mechanism actively invest in the develop- ed in the training. This training clarified compliance boundaries
Risk of research ment of new technologies and products introduce and cultivate R&D
talents and strengthen independent R&D capabilities and employee such as the authenticity of advertising content and consumer and development
Research and innovation capabilities. privacy protection by interpreting laws and regulations such as the
development Advertising Law and the Internet Advertising Management
management Establish an intellectual property management system to manage attribu- Measures responded to regulatory requirements avoided legal
Risks of intellectual tion confidentiality data and infringement and timely register intellectu- disputes caused by false propaganda or information leakage and
property protection al property rights including patents and trademarks to prevent the loss of promoted the company's compliance operations.the group's intangible assets.
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OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY
BUSINESS ETHICS Collaborative Mechanisms OPPEIN has established joint prevention mechanisms with the Baiyun District Public
with Law Enforcement Security Bureau and Baiyun District People's Procuratorate.The Group places great emphasis on overseeing business ethics adhering to the management philosophy of "Fairness
Transparency Cooperation and Freedom" and promoting a culture of integrity. We continuously refine internal guidelines Internal Cross-Departmental The Audit Department and Supervision Department operate independently from all
Supervision business units subsidiaries and marketing systems and work closely to monitor
and codes of conduct establish and improve anti-corruption systems and regulatory mechanisms and strengthen corporate misconduct implement preventive measures.whistleblower protections. Mechanisms such as fair competition and responsible marketing are integrated into the corpo-
Regular Reporting The Supervision Department receives whistleblowing reports conducts thorough rate management system to resolutely eliminate false advertising and oppose any unfair practices that restrict market investigations into corruption cases and regularly discloses findings.competition. We are committed to fostering a clean corruption-free and ethical work environment building a fair and
healthy business ecosystem and safeguarding the Group’s high-quality development. Transparent OPPEIN Platform The company ensures accessible reporting channels for all employees suppliers and dealers while continuously expanding internal and external oversight mechanisms.
2024 Performance Anti-corruption
All employees are required to sign the Integrity and Self-Discipline Commitment Letter
The Group upholds the principles of integrity in business and ethical Employee Integrity Pledges as an annex to their employment contracts.Employee Integrity conduct. We have established anti-corruption policies including the
Pledge Signing Rate "OPPEIN Home Group Integrity Management System" the "OPPEIN Home Integrity awareness campaigns are conducted across production bases
Group Reward and Punishment Management System" and the "OPPEIN Anti-Corruption Training business units and functional departments to promote ethical corporate 100% Home Group Gift Submission Guidelines". Adhering to the "Zero Tolerance" culture.principle we impose strict penalties on any form of corrupt activity striving *OPPEIN anti-corruption initiatives
to build a robust anti-corruption framework based on self-discipline mutual
supervision and collaborative governance. During the reporting period the
signing rate of the Integrity and Self-Discipline Pledge among our employees 2024 Performance Anti-corruption in supply chain
Dedication and
Professionalism Self-Discipline and reached 100%.Accountability At OPPEIN we promote corporate integrity culture and strengthen Compliance with
Rules and Prudent Exercise
Anti-corruption Visits to ethical compliance oversight of partners. Guided by the "OPPEIN Home
Discipline of Authority 01 02 03 04 Business Partners Group Supply Chain Management Regulations" we've enhanced integri-158 times ty evaluation for suppliers and dealers and improved whistleblowing Regardless of Regardless of Regardless of Regardless of mechanisms.We've increased on-site anti-corruption visits to partners
Moral Cultiva-
tion and Ethical Rejection of Greed
personal position or rank past contributions the amount
relationships involved communicating anti-bribery policies and investigating potential miscon-
Conduct and Corruption Including supplierLoyalty and duct. Violations are disciplined immediately.During the reporting period Vigilance in
Solitude and Integrity visits: dealer visits: we made 158 anti - corruption visits (50 to suppliers and 108 to dealers).Anyone found guilty of embezzling company assets or engaging in corruption
must leave OPPEIN (and may face legal prosecution depending on the circumstances). 50 times 108 times
OPPEIN Managing Principles *The "Four Regardless" Principle
Case: OPPEIN anti-corruption training
OPPEIN Home Group Integrity OPPEIN Home Group Reward
Management System and Punishment Management System
OPPEIN Home Group In February 2024 OPPEIN held an anti-corruption training OPPEIN Home Group
Manufacturing System Six OPPEIN Home Group OPPEIN Group Complaint Marketing Personnel Ten seminar for executives with prosecutors from Baiyun District
Major Prohibitions and Supply Chain Audit and Whistleblowing Prohibitions and
Leadership Accountabili Management Measures Management System
People's Procuratorate. The session "Risk Analysis and Preven-
Supervision Regulations tion of Private Enterprise Corruption - Through the Lens of
ty Management Rules
Criminal Law Amendment (XII)" strengthened our integrity
OPPEIN Home Group OPPEIN Home Group Conflict culture. It established workplace controls against corruption
Public Disclosure OPPEIN Home Group OPPEIN Home Group of Interest Recusal and cultivating ethical practices among employees to support
Standards for Violations "Blacklist" Personnel Related Party Relation- Improper Influence Disclo- sustainable corporate development.and Disciplinary Incidents Management Regulations ship Filing Standards sure Regulations
*OPPEIN Home Group Integrity Management System
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OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY
Anti-unfair competition 2024 Performance Reporting and complaint management
The Group upholds fair competition by strictly complying with anti-unfair competition laws and implementing internal Total whistleblowing We encourage OPPEIN employees suppliers dealers and business
regulations including commercial secret management protocols. Clear disciplinary standards address dealer misconduct reports received partners to report law-breaking fraud or corruption. We've established the
such as malicious competition while brand protection policies combat counterfeiting. Supplier interaction guidelines 213 "Complaints and Reporting Management Regulations of OPPEIN Home Performance
prohibit unethical benefit transfers safeguarding consumer rights and market order. Group Inc." and a regularized reporting mechanism across the Pan -
Employees and partners are encouraged to report violations of ethical standards or contractual obligations collectively Whistleblowing Case OPPEIN system. The Supervision Department Marketing Supervision and
maintaining operational integrity. Resolution Rate Customer Service Department and Supply Chain Audit Branch handle and
During the reporting period the Group faced no legal disputes related to unfair competition or anti-monopoly issues. 100% investigate complaints to safeguard whistleblowers' rights. During the
reporting period the Group received and fully investigated 213
whistleblowing cases resolving all of them.
2024 Performance Tax transparency
We firmly oppose tax corruption fulfill tax obligations with Chairman's Whistleblowing Email: opceo@oppein.com
Total tax payment integrity and contribute to local economic development.- upervision Department Whistleblowing Email: opjcb@oppein.com
RMB 1.446 billion Complying with tax laws we formulated the "Tax Manage- Supervision Department Whistleblowing Hotline: 020-36733955
ment System of OPPEIN Home Group Inc." and established a
sound tax management system. We use risk assessment Supervision Department WeChat Reporting Channel: 13538731145
mechanisms for early warning regulate tax - related activi- WeChat Complaints and Reporting Platform: "Integrity OPPEIN" official account
ties and ensure timely tax declarations and payments. We A d d r e s s f o r r e c e i v i n g v i s i t s a n d l e t t e r s : Supervision Department of OPPEIN Group (Room 506 5th Floor)
strengthen the tax management system through random No. 366 Guanghua Third Road Baiyun District Guangzhou City and Supervision Department of Qingyuan
checks training and improving practices to avoid risks. Base Building G 3rd Floor Area A.During the reporting period the Group met national tax and
accounting regulations received tax compliance certificates
and paid a total of RMB 1.446 billion in taxes. Handling of complaints and reports
The Group ensures prompt handling of complaints and reports. For filed cases dedicated personnel are immediately
assigned to investigate. In daily supervision communication mechanisms are based on professional divisions. If violations
fall under both professional and public supervision the“ whoever discovers handles” principle applies. Verified cases of
fraud corruption or unfair competition are dealt with under the“ Four No Exceptions” rule and investigation results are
fed back to the complainant.Whistleblowing handling principles
◆ Principle of confidentiality ◆ Principle that complaints must be investigated
and violations must be punish
◆ Principle of recusal ◆ Principle of Protection and Reward
◆ Principle of integrity and self-discipline
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Whistleblower protection measures
The Group strengthened whistleblower protection through enhanced confidentiality protocols mandating non-disclosure Complaint reporting safeguard mechanism
obligations for all personnel handling reports. Cases are processed under secure handling protocols aligned with ethical
codes and classified by business category. ◆ Reporting of complaints against OPPEIN employees: transfer welfare policy favoritism
Retaliation against whistleblowers is strictly prohibited. Violations trigger joint investigations governed by integrity
◆ Provider complaint reporting protection: immunity cooperation protection cooperation upgrade protection
policies with confirmed cases resulting in disciplinary action including judicial referrals for criminal offenses. Affected
individuals are instructed to immediately report retaliation incidents to supervisory departments. ◆ Complaint reporting protection for dealers: immunity agency protection dealer economy benefit protection r
esource support opportunity support
2024 Performance Business ethics training Training Training focus areas
participants
Righteousness Culture Righteousness Culture is a crucial part of OPPEIN's corporate culture.Guided by the "OPPEIN Integrity Management System" the Group sets up
training sessions
67 strong systems to punish violations promote integrity and build an honest
"Righteousness Culture" education is mandated as a core component of onboarding. Corporate and production
New employees
times base audit supervisors must conduct timely training sessions.work environment. This reinforces anti-corruption defenses for leaders and 培训重点
employees.People trained We conducted multiple integrity culture promotion activities across
23217 production bases business units and functional departments. A diversified Management Specialized "Righteousness Culture" seminars for leadership: Minimum two annual training sessions required personnel participation records included in annual performance evaluations.
training system has been built combining on-site workshops online cours-
es internal publications and official account articles. This system
Training coverage rate integrates topics such as anti-corruption fair competition and responsible
100% marketing aiming to guide employees in upholding ethical conduct and "Righteousness Culture" training conducted through annual supplier conferences to reinforce OPPEIN's core
Suppliers
professional integrity to prevent serious violations.During the reporting values:＂Fairness Transparency Collaboration Freedom＂.period a total of 67 integrity culture training sessions were held covering
23217 participants with a 100% coverage rate.
"Righteousness Culture" promoting "Righteousness Culture" promoting "Righteousness Culture" promoting "Righteousness Culture" promoting "Righteousness Culture" promoting "Righteousness Culture" promoting
scene: Headquarter scene: Wuxi base scene: Qingyuan base scene: Chengdu base scene: Tianjin base scene: Wuhan bas
*"Adhere to the Righteousness Win Together" Theme Training
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RESPONSIBLE MARKETING
To ensure the legality and compliance of all marketing work the Group has formulated internal management systems such
as the Ten Prohibitions and Supervision and Management Regulations for Marketing Personnel of OPPEIN Home Group
the Terminal Operation Management Regulations for Dealers of OPPEIN Home Group the Management Measures for
Overseas Retail Dealers of OPPEIN Home Group and the Advertising Compliance Guidelines of OPPEIN Home Group in
accordance with relevant laws and regulations including the Advertising Law of the People's Republic of China. These
regulations standardize the marketing behaviors of the Group and its subsidiaries within the administrative regions of
China (excluding Hong Kong Macau and Taiwan regions) enhance the compliance awareness of marketing personnel and
strengthen marketing management. While pursuing commercial interests the Group fully considers the long-term
interests of consumers society and the environment ensuring that marketing activities are transparent honest and bene-
ficial to society.Marketing content related to health/life must meet national standards and secure prior
Marketing compliance
consent when involving third-party rights.All advertising must be truthful avoiding false/misleading claims that could
Ethic advertising deceive consumers.Product and service claims regarding performance quality pricing etc. must
Transparent marketing be accurate and transparent.Eco-friendly products are promoted to minimize waste and pollution support-
Green marketing ed by sustainable production/packaging methods that reduce carbon
footprints.*Responsible marketing management
OPPEIN dealers strictly adhere to advertising operations in accordance with the OPPEIN Home Group Outdoor Advertising
Management Regulations and related compliance requirements. Our multi-tiered oversight system ensures full compli-
ance about Legal Review Ongoing Monitoring Enforcement Measures.
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ENVIRONMENT
03 OPPEIN embeds green development across operations advancing eco-friendly enterprise construction through low-carbon circular systems. Guided by national environmental laws the Group formulated internal environmental policies defining organizational responsibilities and driving EMS development. Energy-saving
upgrades and emission reduction initiatives were prioritized with increased invest-
ments integrating green practices into manufacturing processes to enhance
environmental performance.
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ENVIRONMENTAL MANAGEMENT SYSTEM Management structure
The Group established a three-tier EHS management structure (leadership coordination implementation) under its
The Group adheres to national and local environmental regulations adopting "prevention-first" principles aligned with environmental strategy with defined roles at each level. Implementing dual responsibility principles and accountability
GB/T24001-2016 standards. Environmental mechanisms were strengthened through risk management PDCA cycles and mechanisms responsibilities are allocated across manufacturing marketing and support functions to coordinate environ-
process optimization to ensure system efficacy. mental efforts. EHS risk management is integrated across all operations systematically identifying and controlling risks to
reduce workplace accidents and environmental impacts while fostering a safety and sustainability-focused culture.Management policies and goals Director of the Group EHS Committee
Environmental protection is integrated into the sustainability strategy with tailored policies guiding operations. The Deputy Director of Group
Group enhanced pollution control and resource recycling initiatives to achieve comprehensive green development goals. EHS Committee EHS Committee
Executive Director of
EHS Management Department EHS Committee
Five EHS Base Sections
Manufacturing systems Marketing system Public and manufacturing
modul module functions module
*Group EHS management organization structure
Management system
The Group as an industry pioneer with ISO14001 certification and eco-label accredita-
tion established comprehensive environmental management systems including "Envi-
ronmental Management Manual""EHS Management Guidelines""Procedures for
【Environmental policy】 【Environmental management goals】 Environmental Factor Identification and Determination Control"etc. During the report-
ing period the Qingyuan Base Environmental Implementation Specification was
Protecting the environment 100% compliance rate for introduced to systematically advance green supply chain development. Standardized
and combating pollution; waste gas noise and waste environmental management practices enhanced overall performance with both Guang-
Energy saving and cleaner water emissions zhou headquarters and Qingyuan Base achieving EMS certification by period-end.production; 100% compliant disposal of all
Compliance and continuous types of waste
*ISO14001 Environmental
improvement. 0 environmental complaints System Certification
from related parties
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Management review ADDRESSING CLIMATE CHANGE
We've established "Environmental Monitoring and Measurement Control Procedures" and "Compliance Evaluation Control
Procedures" to test key environmental parameters and assess compliance with laws regulations and targets. We maintain The Group implemented comprehensive risk management frameworks through dedicated regulations defining risk
records like the "Environmental Operation Inspection Sheet" and periodic evaluation results. mitigation measures and control processes to strengthen operational resilience.Internal review Governance strategy and risk management
We conduct an annual internal audit of the environmental management system per internal requirements covering all We recognize the urgency of climate change and prioritize its response by integrating climate - related risks and opportuni-
system provisions and departments to check compliance with GB/T24001-2016 and proper implementation. ties into ESG management while improving risk response and environmental disclosure. During the reporting period
following the Group's risk management procedures we strengthened climate change risk management. We identified
Management evaluation climate risks and opportunities in business operations adjusted the energy structure optimized resource use and
We annually review the environmental management system per the "Oprah Home Furnishings Group System Manage- enhanced risk management effectiveness through energy conservation consumption reduction and renewable energy
ment Review System" usually after internal audit or before third-party audit to ensure its suitability adequacy and adoption.effectiveness. Reviews may increase with major external changes or requests from environmental bodies. Inventory of climate change risks and opportunities
During the reporting period a third-party certification body externally audited our Guangzhou headquarters and Qingyu-
an base's environmental management system. The audit concluded the system meets applicable requirements and can Aligning with TCFD recommendations and Shanghai Stock Exchange guidelines the Group identified transition and
achieve expected results. physical climate risks via comprehensive analysis. Countermeasures were developed to embed climate considerations
into ESG and risk management systems.Routine monitoring
We monitor and correct irregularities environmental incidents and EHS work implementation issues. Violations of
environmental regulations leading to harmful consequences are handled per relevant provisions. We follow up on
non-conformities found through monitoring internal audits and management reviews take corrective actions and
check their effectiveness.Each base's EHS management branch supervises environmental work implementation. Non-compliant cases are
ordered to rectify immediately and responsible departments must complete rectification and submit a written report
within the specified period.
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Transition risk Market risk
Policy and legal risks Influence period Medium and long term
Risk description Response
Influence period Medium and long term Raw material and energy costs are gradually Forge stable supplier partnerships and prioritize clean
Risk description Response rising. energy adoption in production.Since China's 2020 dual-carbon pledge Monitor governmental environmental regulations and
Influence period Medium and long term
tightened regulatory frameworks have disclosure requirements to ensure compliance and
elevated operational compliance risks and mitigate risks. Risk description Response
Inadequate response to green product Expand eco-friendly product lines to meet market
potential legal exposures.demand risks market share loss. demands.Influence period Medium and long term
Influence period Short-term Medium-term and Long-term
Risk description Response Risk description Response
During the production and operation Strengthen the group's own sustainable development
Industry carbon reduction mandates are Implement energy-saving initiatives and boost clean
process of the group or suppliers and management and actively respond to climate change.intensifying emission control requirements. energy adoption.distributors negative impacts on climate or Strictly require the group's upstream and downstream
Influence period Short medium and long term the environment may lead to reputational industry chains to follow sustainable development
damage for the group and a decrease in principles and operate legally and compliantly in a
Risk description Response investment willingness from stakeholders. green manner.Global carbon market regulations may Continuously monitor global carbon pricing mecha- Improve the transparency of the group's related
escalate operational and compliance costs. nisms while adapting strategies to address emission information disclosure by regularly and irregularly
challenges. disclosing relevant management information through
Influence period Medium and long term annual reports and sustainable development reports.Risk description Response Reputational risk
Overseas operations face environmental Conduct regular legal training for regional operations
compliance risks from regional/language employ dedicated compliance officers and enforce Influence period Short medium and long term
barriers affecting procedure adherence. policy adherence.Risk description Response
Technology risk Operational environmental impacts from Strengthen the group's own sustainable develop-
value chain activities threaten reputation ment management and actively respond to
Influence period Medium and long term and investor confidence. climate change.Strictly require the group's upstream and down-
Risk description Response stream industry chains to follow sustainable
Insufficient investment in eco-tech R&D/up- Enhance R&D capabilities through talent development development principles and operate legally and
grades risks technological obsolescence. and technology partnerships. compliantly in a green manner.Improve the transparency of the group's related
Influence period Medium and long term information disclosure and regularly and irregular-
Risk description Response ly disclose relevant management information
Delayed adoption of green technologies Advance energy-efficient innovation via industry collab- through annual reports and sustainable develop-
hinders low-carbon competitiveness. oration and resource recycling initiatives. ment reports.
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Phy sical risk Opportunity
Acute risk：Extreme weather such as typhoons heavy rains and floods Resource efficiency
Influence period Short medium and long term Influence period Medium and long term
Risk description Response Opportunity description Response
Extreme weather can damage assets like We identify asset damage risks and insure necessary Develop energy-efficient equipment and Explore new tech equipment and processes to improve
plants office buildings and equipment. equipment. technology; leverage policy incentives. resource efficiency.Leverage government support to introduce new
Influence period Short medium and long term technologies and invest in green projects.Risk description Response
Extreme weather can cause equipment We've developed emergency plans for extreme Products & Services
damage hinder normal work and disrupt weather and outdoor operations and conduct
transportation. related training to enhance disaster response. Influence period Medium and long term
Opportunity description Response
Focus on R&D of green low-carbon Boost R&D investment in green products to increase
Chronic risk：Persistent heat drought etc. products. their market share.Influence period Short medium and long term Market
Risk description Response
Influence period Medium and long term
Persistent high temperatures increase risks We strengthen equipment maintenance fix faults
of power facility failures and accidents. promptly and install cooling systems. Opportunity description Response
Meet growing consumer demand for Identify and participate in emerging markets.Influence period Short medium and long term low-carbon products and tap emerging
markets.Risk description Response
High temperatures affect employee health Cooling facilities and heatstroke prevention supplies
and reduce outdoor working time and are provided in production areas. We ensure water Adaptability
efficiency. supply implement heatstroke prevention measures
and adjust production plans as needed. Influence period Medium and long term
Opportunity description Response
Influence period Short medium and long term Utilize renewable energy sources and imple- Step up renewable energy development and utilization.ment energy substitution/diversification
Risk description Response
programs.Prolonged drought can cause insufficient Reserve water boost water recycling and avoid build-
water supply and unstable production. ing factories in high water risk areas
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Case: Recycled water for processes
Recycled water for painting process
Use paintgun wash water in airtight space cleaning recover and recycle it via filtration and employ water
curtains to handle paint mist with water recycling regular paint residue salvage and water replenishment and
replacement.Tap Water
RESOURCES UTILIZATION AND MANAGEMENT
Soft Water
The Group has integrated sustainable development into production and operations strengthened resource management Preparation System
practiced green development complied with relevant laws and regulations and implemented systematic resource Material Cutting Wastewater
management solutions to enhance resource efficiency.Softened Wastewater
Water Drilling
Water utilization and management Tap Water Sharp Edges WastewaterWastewater
Tap Water Milling
We strictly follow China's water management requirements for water-saving evaluations improving our management
system with institutions personnel metering network diagrams and water metering ledgers. We proactively install second-
ary metering water meters in base buildings and workshops for categorized water consumption statistics. During the report- Assembly
ing period the Group had no major water extraction or drainage incidents.Splicing and Cutting
Water utilization
Our water primarily comes from municipal supplies for domestic use indirect
Wastewater Stone Wastewater
cooling water and some production water. To better manage water resources Tap Water Water Polishing Sedimentation
Treatment System
and address related pressures and risks we have actively implemented
water-saving and upgrading measures investing in water conservation initia- Potting Water
tives and sewage treatment equipment. In the reporting period we replaced Reuse Pond
sensor-type water-saving appliances with a 10% water-saving rate and (Clear Water Aluminum Alloy Chain
reduced daily water consumption through various measures. We also fully Profile Cutting Reinforcement
Pond)
utilized recycled water in production with sewage treatment and recycling in Waste Cloth Cleaning Water
the countertop plant reducing tap water usage by 720000 tons annually. Wiping with Tap Water Cleaning Reused Water
2024 Performance
The factory adopts wastewater treatment and Packaging and Storage
recycling reducing tap water usage by
720000 Kitchen Cabinets Countertop*Sensor-type water-saving appliances tons annually.
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Energy consumption and management 2024 Performance Renewable energy utilization
We strictly comply with energy-saving laws and regulations in our operational areas adhere to Total PV capacity (including Expansion of PV We align with national low-carbon goals advocating low-carbon
the energy-saving consumption-reducing and green-production policy actively build an energy under construction) capacity
production. We've invested in renewable energy projects at our
Guangzhou Qingyuan Tianjin and Wuxi bases using a "self-genera-
management system standardize energy management carry out energy-saving projects via 56.13 MW 2.93 MW tion self-consumption surplus to grid" model. This increases clean
management upgrades and technological innovation promote renewable energy use in opera- energy use transforms our energy structure mitigates climate risks
tions and explore energy - saving potential. We also strongly support intelligent energy manage- Total electricity generated and cuts greenhouse gas emissions from electricity use aiding
ment and enhance energy control. By the reporting period's end the Group's main production by PV projects national carbon goals.base Qingyuan OPPEIN Integrated Home Furnishing Co. Ltd. passed the GB/T 23331 - 2020 / ISO 41060.38 MWh During the reporting period we expanded photovoltaic projects in
50001:2018 and EWC - R - En - FM:2019 Energy Management System Certification. Tianjin and Wuxi reaching 2.93 megawatts. Our total installed photo-
Proportion of clean energy use voltaic capacity is 56.13 megawatts (including those under construc-
*Energy Management System Certification of Qingyuan OPPEIN Integrated Home Furnishing Co. 11.39% tion) generating 41060.38 megawatt-hours. This represents 11.39%
Energy management of our clean energy use a 15.87% year-on-year increase. We save
12500 tons of standard coal and reduce CO2 emissions by about
We strictly equip use and manage energy according to standards like Annual savings in Reduction in carbon
27400 tons annually.
GB17167-2006 conduct regular energy audits and assess energy man- standard coal dioxide emissions
Note: Calculate annual CO2 emission reductions of PV projects per the Ministry
agement to ensure compliance. Monthly energy consumption stats like 12500 tons 27400 tons
of Ecology and Environment's 2023 emission reduction factors.water electricity and oil are analyzed with data reports sent after
department checks. Any consumption anomaly triggers an investiga-
tion and energy-saving report to the Executive President. During the
*Intelligent power consumption online energy Renewable energy projects
reporting period a base energy management system was established.efficiency monitoring and management system Project Type of Installed Annual power
Energy storage projects were implemented at Qingyuan and Wuxi location renewable capacity generation Project Fact Sheetenergy (MW) (MWh)
bases. Power system operations were optimized to cut fossil fuel waste and peak shifting reliance. Renewable energy
use was increased to reduce resource consumption and pollution. The energy consumption monitoring system was Guangzhou Project covers factory and living area roofs 155000 sqm; Phase 1 Headquarters PV 0.80 906.23 grid-connected Dec 2021 Phase 2 Jun 2023.also continuously improved.Qingyuan Project covers factory and living area roofs 155000 sqm; Phase 1
Case: Electrochemical Energy Storage Project Base PV 20.40 15730.61 grid-connected Dec 2021 Phase 2 Jun 2023.In 2024 we deployed lithium iron phosphate electrochemical energy storage systems with 17.5MWh and
18.37MWh capacities at our Qingyuan and Wuxi bases connected to the grid for trial operation on March 25. Tianjin Tianjin Base project on ABCDEFGH building roofs operational May
Base PV 9.13 10518.00 2022; factory PV grid-connected Dec 2023; living area PV completed
The system stores electricity in off-peak hours and releases it during peak times reducing the company's Jul 2024.energy costs by about 2 million yuan annually. It also enhances energy system flexibility and reliability ensur-
ing stable production power supply. Wuxi Wuxi Base project on six ABCDEF building roofs 82000 sqm
Base PV 13.80 13905.54 grid-connected Aug 2018; Building G 17000 sqm grid-connected Jan 2024; total capacity ~13 MW.Chengdu Chengdu Base project on ABCDEFG building rooftop 120000 sqm
Base PV 12.00 - planned for grid connection May 2025.Qingyuan OPPEIN energy storage project Wuxi OPPEIN energy storage project Total 56.13 41060.38
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OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY
Photovoltaic Project Location Energy-saving renovation
We deeply practice energy-saving production principles. Each plant sets annual energy - saving targets and programs
Annual standard coal Annual carbon dioxide equivalent based on production and operation realities. During the reporting period the Group's headquarters and bases compre-
savings emission reductions
hensively enhanced energy efficiency via structural technological and management energy - saving measures and
consistently tracked energy - saving and renovation program progress.
0.280.57
Selected energy-saving renovation projects completed during the reporting period4.23 12.48 8.74 27.39 Project Type Project TypeProject 4.78 Type Project description Energy-saving effect（thousand （thousand 9.91tons） tonsCO2）
Replace ordinary LED lamps with high - The base upgraded over
Lighting efficacy ones (luminous efficacy>150lm/W) 38000 lighting fixtures
3.20 Technical energy 8.17 energy-saving conservation to save about 46% energy and expand reducing annual electricity retrofit energy - saving lighting applications. costs by RMB 3.5 million.
Guangzhou Qingyuan Base Tianjin Base Wuxi Base
Headquarters Use sound and visualization equipment to
locate compressed air system leaks quickly Compressed air system leak
Technical energy Compressed air l and dispose them. The Group's manage- repairs (2300+ points
conservation eakage ment standard for compressed air systems addressed) saved RMB 2.4
prevention specifies leakage monitoring and preven- million yearly.tion techniques.Promote Tianjin base's air compressor
pressure reduction program Group - wide Air compressor pressure
cutting air supply pressure by 0.5 bar and optimization achieved
Technical energy Air Compressor compressed air system energy consump- annual savings exceeding
conservation Pressure Reduction tion by 4%. Bases innovate with separate RMB 2 million.Supply high - and low - pressure air supply to
boost energy - saving.Guangzhou Headquarters PV Power Generation Project Qingyuan Base PV Power Generation Project
Shut down vacuum cleaners and air
compressors automatically during produc- Post-retrofit comparisons
Vacuum cleaner tion line rest periods via timer shutdown show Wuxi Base saving
Technical energy air compressor functions time control switches or self - RMB1.04 million/year and
conservation timed shutdown programmed auto - shutdown programs to Chengdu Base RMB
energy saving avoid energy waste from idling equipment 840000/year in energy costs.enabling over 1 hour of daily shutdown.Chengdu base pilots high - and low -
pressure separate air supply for production Chengdu's pilot retrofit
Air compressor high lines based on equipment air pressure program generated
Technical energy and low pressure demand. This improves compressed air approximately RMB
conservation separate air efficiency reduces air compressor load 650000 in annual net
supply project cuts energy consumption and extends benefits.Tianjin Base PV Power Generation Project
(New Living Area) Wuxi Base PV Power Generation Project equipment life.
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EMISSIONS MANAGEMENT 2024 Performance Pollutant prevention and control
Environmental protection In accordance with national laws such as the "Air Pollution
The Group complies with national environmental regulations governing solid waste management ensuring proper facilities synchronization Prevention and Control Law of the People's Republic of China"
100% and the "Solid Waste Pollution Environmental Protection Law of handling of discharged materials. Collaboration with authorities and stakeholders enhances ecological safety and operation rate the People's Republic of China" we have established and imple-
emission standardization. mented regulations including the "Environmental Protection
Pollutant monitoring Implementation Standards" and "Waste Gas Treatment and
Emission Management Procedures" to enhance control over
2024 Performance Carbon emissions management pass rate100% pollutant emissions.Production processes implement standard-
ized disposal of organic emissions and dust with hazardous
Aligned with China's dual-carbon goals the Group conducted green-
Total GHG emissions waste managed by certified institutions. Environmental assess-
house gas inventories per national guidelines implementing energy-sav- Annual environmental ments and routine monitoring ensure compliance. During the
(Scope 1 and 2)
ing measures to reduce emissions. Supply chain carbon tracking is being protection investment reporting period 100% operational rate of eco-facilities 100% 174155.35 tons CO 2 phased in to refine reduction strategies. During the reporting period RMB 70.28 million pollutant compliance and RMB 70.28 million invested in
environmental initiatives.Scope 1 and 2 emissions totaled 174155.35 tons CO2e a 16.25%
EYear-on-year reduction
year-on-year decrease.in greenhouse gas emissions
16.25% Pollutant monitoring and management
Monitoring projects Monitoring method Monitoring cycle Test method or standard Record
OPPEIN Greenhouse gas emissions of in 2024（in tCO2e） Standard for Comprehensive
Outsourced Emission of Volatile Organic Third-party
Bases Direct GHG emissions Indirect GHG emissions Total GHG emissions
VOCsexhaust 1 time/half year Compounds from Stationary（Scope 1） （Scope 2） （Scope 1 and 2） monitoring test reportsPollution Sources (DB 44/
2367-2022)
Guangzhou
Headquarters 422.92 11734.66 11572.97
Qingyuan
3430.49 65766.79 69197.28 Outsourced
Third-party
Base Dust emissions 1 time/year Air Pollutant Emission Limitsmonitoring test reports
Tianjin
Base 2414.72 28727.42 31142.14
Employee cafeteria Criteria for Design
Wuxi 486.68 33544.88 34031.56 domestic sewage Outsourced 1 time/half year Treatment Acceptance Third-party Base of Wastewater
water discharge monitoring test reports
Treatment Plants
Chengdu 463.37 20884.62 21348.00
Base
Environmental Noise
Wuhan 98.33 6765.07 6863.40 Emission Standards for
Base Noise emission Outsourced 1 time/quarte Industrial Enterprises at Third-party
monitoring Factory Boundaries (GB test reports
Total 7316.52 166838.83 174155.35 12348-2008)
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Air emissions Noise management
Production processes generate particulate matter VOCs and combustion byproducts. Advanced filtration systems (dust Our noise pollution mainly comes from cutting grinding air compressor operation motor vehicles and the sewage
collectors RTOs activated carbon devices) ensure emissions comply with standards for nitrogen oxides sulfur oxides and treatment station's fans and pumps. For different noise sources we take various control measures such as using low-noise
particulate matter. equipment adjusting operation frequency muffling soundproofing placing noisy equipment away from plant boundar-
ies and implementing green isolation around boundaries.Case: Online monitoring equipment for air pollutant emissionsv Waste management
We categorize and manage waste as non-hazardous and hazardous with clear regulations for the entire waste manage-
ment process.Online monitoring equipment is managed by
dedicated staff with data recorded and main-
tained per regulatory requirements. During Non-hazardous waste
malfunctions manual VOCs monitoring occurs Our non-hazardous solid waste includes domestic garbage wood-type edges dust glass countertop edges and alumi-
every six hours with results documented and num edges. We standardize the construction and maintenance of general industrial solid waste temporary storage
reported to authorities. warehouses according to relevant standards and regularly transfer waste to qualified treatment units. We also establish
management accounts to record waste details and retain transfer documents.Selected types of general industrial solid waste generated
Wastewater management
We strictly adhere to "Water Pollution Prevention and Control Law" and the "Regulations on Urban Drainage and Wastewa-
ter Treatment." In line with OPPEIN’s "Environmental Management Regulations" and local requirements we enhance
control over the discharge of domestic sewage and industrial wastewater. We actively use new wastewater treatment
equipment and online water quality monitoring technology to ensure that the wastewater discharged within the factory
meets national standards like "Integrated Wastewater Discharge Standards (GB 8978-1996)" and "Urban Sewage Treat-
ment Plant Pollutant Emission Standards (GB 18918-2002)" minimizing environmental impact.During the reporting period the Group was not involved in any penalties related to wastewater discharge violations.Wood chips wood dust Sludge from Bathroom Vanities/countertops/Ovi
Wastewater discharge
We strictly carry out wastewater classification and treatment with a well-established sewage treatment system. For
domestic wastewater living area wastewater goes into the municipal sewer network via septic tanks (with canteen oily
wastewater pre-treated by a grease trap) and production area wastewater is discharged into the sewer after septic tank
pre - treatment and centralized wastewater treatment plant treatment.For production wastewater water curtain paint spray wastewater is recycled in the system and replaced regularly.Replaced wastewater is treated via coagulation air flotation Fenton oxidation biochemical treatment etc. Countertop
production wastewater is treated by our stone wastewater sedimentation system and reused except for waterjet cutting. Waste stone not stained with paint/adhesive Waste wood not stained with paint/adhesive
Quartz rough slab workshop wastewater is treated via flocculation and sedimentation outside the plant and then recycled.
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During the reporting period the Group incurred one environmental administrative penalty related to solid waste
treatment and paid a fine amounting to RMB 199000 and the details of the violation are as follows: Rectification results
◆ Selection of local qualified suppliers:
Introduction to the event Selected a licensed unit with a general solid waste operation license as the sludge disposal supplier verified its
qualifications and technical capabilities and conducted on-site due diligence of its sludge disposal site and
process. Choosing local solid waste disposal suppliers facilitates the entire process of solid waste transporta-
From 2022-2023 Wuxi Base faced issues with unqualified third-party sludge disposal vendors. In tion and disposal tracking. Their transportation vehicles are equipped with government-managed GPS
May 2024 local authorities imposed a RMB199000 fine under solid waste regulations. systems and shorter transportation distances reduce the risk of solid waste transportation leakage.◆ Improvement of solid waste transfer management mechanism:
Enhanced solid waste transfer management with a ledger and monthly reports. Launched a joint order system
on the government platform for tracking waste from the factory to the receiver with online monitoring and
mutual confirmation.Rectification measures
◆ Unscheduled Plant Inspection and Verification:
The Wuxi base has terminated cooperation with a supplier by the end of 2023 to prevent long-term Conducted unscheduled visits to the sludge disposal supplier's plant for random inspections of
pollution risks. By May 2024 it selected a certified supplier for sludge disposal.Due diligence solid waste treatment to ensure compliance with contractual agreements.verified the new supplier’s processes with rectification reports submitted and fines paid promptly. ◆ Optimization of supplier management:
Optimized supplier management by strictly verifying suppliers' qualification documents and environmental
protection penalty records in accordance with relevant laws and regulations. The Group's headquarters and
bases carry out unannounced on-site inspections on high-risk suppliers from time to time.◆ Upgrade the internal compliance system:
Set up a commissioner to supervise and track the entire process management of solid waste trans-
fer disposal and record archiving. Focused on training relevant personnel to learn relevant laws
and regulations to strengthen environmental compliance awareness.◆ Enhance the transparency of information disclosure:
Disclosed the annual solid waste disposal situation and responded to relevant penalties and
corrective measures in the "Waste Management" section of the Group's "2024 Sustainability
Report".*On-site due diligence traceability of newly selected suppliers
“One enterprise one file” Solid waste disposal supplier irregular
transfer joint declaration platform factory inspection verification
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2024 Performance Hazardous waste
Case: Emergency response exercise for hazardous waste spills
Total hazardous waste The hazardous wastes we generate include waste paint sludge waste glue
treated at various sites waste glue residue waste activated carbon waste empty drums
2597.07 paint-containing wastewater etc. Each of our bases has formulated "Oper- To enhance environmental safety in hazardous waste collection and disposal Chengdu Base's relevant tons ating Rules for Hazardous Wastes" to strictly control the entire process of personnel formed an emergency drill team per the "Hazardous Waste Leakage On-site Disposal Plan" organiz-
Hazardous waste classification packaging storage transfer and disposal of hazardous ing drills and reviews.treatment rate wastes. During the reporting period the Group's bases properly disposed
100% of a total of 2597.07 metric tons of hazardous waste achieving a 100% proper disposal rate of hazardous waste.
Classification & packaging Storage
Strictly identify and classify Set up hazardous waste storage in
hazardous wastes in accordance the factory following the "Hazardous
with their characteristics with the Waste Storage Pollution Control
"National Hazardous Wastes List" Standards" (GB 18597-2001). Take
set corresponding hazardous Hazardous waste transporter spills glue Surrounding employees evacuate the site and seepage control corrosion preven- notify administrators
waste identification labels and tion and protection from rain and
update and print hazardous waste sun to prevent environmental
identification labels according to pollution. Include a drainage ditch or
the requirements of the latest cofferdam after relevant treatment.national standards.Transfer & disposal compliance management
Take pollution prevention measures Each base must establish a hazard- Collect hazardous waste to hazardous
to prevent scattering loss and ous waste management ledger to Completion of site cleanup and cleanup waste contaminant bags and exercise summary and review
leakage during the process of record entry and exit times sources
transfer entrust qualified organiza- and destinations weight container
tions for transfer and disposal and details and storage facility numbers.verify whether the "Road Dangerous Also enter the electronic ledger into Reduced environmental impact
Goods Transport Business License" the base's regional solid waste All bases are required to create a heavy polluted weather response plan per local environmental requirements and file it
of the transport unit and the "Hazard- platform.ous Waste Operating License" of the with the local department. Upon pollution warnings all bases cooperate with government emergency info and production
receiving unit are consistent with the cut requests implementing reductions to decrease pollutant emissions like VOCs nitrogen oxides particulates and sulfur
type of hazardous waste to be
transferred. dioxide thus minimizing their environmental impact.
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GREEN PRODUCTION SYSTEM 2024 Performance Green factory
We apply green design concepts in plant construction using local low-ener-
The Group maintains green production and operation principles ensuring all stages from raw material selection to instal- National Green Factory gy eco-friendly materials to reduce lifecycle energy use. By optimizing plant
lation meet green environmental standards. With sustainable development at its core the Group constructs a full - process Certification orientation and lighting we balance natural and artificial light. Fan systems
green industry chain including integrated green production solutions and environmental monitoring standards. This 1 company enhance workshop air circulation cutting AC use. An ecological program with
forms a rigorous green production loop enhancing energy efficiency reducing pollution and contributing to the Group's native plants controls maintenance costs.green transformation and sustainable social development. Provincial Green Factory These measures helped our Qingyuan base earn national and Guangdong
Certification
Province Green Factory certification during the reporting period. By the
2 companies report's end the Group held 1 national and 2 provincial Green Factory certifi-
cations.Environmentally Friendly
Delivery and Installation
◆ Installation is Eco-Friendly
Formaldehyde-Free and
Pollution-Free
◆ Green Complete Delivery
Qingyuan base was honored with both Tianjin base was honored with the provincial
national and provincial "Green Factory" "Green Factory"
Environmentally Friendly
Environmentally Friendly Transportation
Packaging
◆ Integration of Logistics
◆ Streamlined Packaging Transportation Resources
Process Upgrade ◆ Reduction in Storage
◆ Recyclable Steel Pallets Quantity
Replace Wooden Pallets
Environmentally Friendly
Environmentally Friendly Raw Materials
Production
◆ ICertified with European
◆ Green Environmental E1 Standard for Panels
Protection Production ◆ Certified with ENF Standard
Process for Environmentally Friendly
◆ Advanced Environmental Panels
Protection Facilities
*Schematic diagram of green production system
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Clean manufactoring Streamlined packaging
We prioritize environmental protection and emission reduction in product develop- We actively cut product packaging materials and use eco-friendly recyclable alternatives to boost resource utilization. In
ment. We research and promote green materials technologies and processes use packaging technology we've refined processes revised redundant packaging standards and designs and enhanced
energy-efficient equipment and automation and adopt advanced environmental protective performance to reduce product damage during distribution. This reduces costs meets market demands and
facilities. Our Asia's first furniture powder spraying line achieves no VOC emissions raises customer satisfaction.and cuts carbon emissions by over 75% compared to baking paint. We also explore
green processes like water-based paint and low-energy PUR edge sealing.Packaging process upgrading measures
Environmentally friendly products
◆ Ongoing optimization of board-level blocking software rules reduces the occurrence of
We are committed to creating eco-friendly home products. Through innovation we enhance product environmental non-essential single-piece packages or fragile blocking patterns.performance to build healthier homes. As an industry leader in environmental standards we've released the "OPPEIN Pure
◆ Optimize some of the packaging materials develop alternative materials for filling foam
Formaldehyde Enterprise Standard" limiting formaldehyde emissions to 0.02mg/m3 below the national ENF standard.particles that are prone to fall off and ensure that the cost of packaging is competitive.During the reporting period we upgraded our formaldehyde purification tech to version 4.0 offering consumers compre-
hensive health protection and advancing home environmental standards. ◆ Use recyclable steel brackets instead of wooden bottom brackets.[OPPEIN Wardrobes "formaldehyde-free" development history]
2021 2023 Low-carbon transportation
Formaldehyde-Free 1.0: Single Cabinet Formaldehyde-Free Formaldehyde-Free 3.0: Whole House 360° Formaldehyde-Free
Whole Home 1.0: "Three High Standards" Whole Home 3.0: "5+N" Integrated Home We build an integrated transparent intelligent and green delivery system for integrated home furnishings. We implement
the Group's "complete all set on time and low cost" delivery strategy optimizing logistics via trunk line integration freight
2022 2024 shuttle systems consignment transport and informatization and upgrades the green delivery system.
Formaldehyde-Free 2.0: Whole Cabinet Formaldehyde-Free Formaldehyde-Free 4.0: Formaldehyde-Free Dual Stars
Whole Home 2.0: Six Major Space Solutions Whole Home 4.0: Nine Major Spaces + Whole House Matching
Trunk line integration
Trunk line integration reduces cargo transshipments from 3-6 to 1-2 times improving efficiency. It also cuts outsourcing
enhancing logistics control and service quality. During the reporting period the company signed trunk line agreements in
over 300 cities covering 97% of integrable cities and 90% of cargo volume. Shuttle on-time rate was 93.45% trunk integra-
tion rate 92.28% delivery on-time rate 95.21% and transport loss improved 21.97% year-on-year.
2024 Performance
Cities with trunk line integration Proportion of cargo covered
agreements signed with carriers by dry line integration
Over 300 Over 90%
Year-on-year improvement
*The Group has been shortlisted as Trunk line integration Trunk line integration On-time delivery in overall transportation loss
*China Environmental Labeling "Green and Low Carbon Medical Building rate 93.45% rate 92.28% rate 95.21% 21.97%
OPPEIN aldehyde-free Gemini six all-round standards Product Certification Materials A-Level Supplier".
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OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY
Schematic diagram of transportation
patterns after trunk line consolidation CIRCULAR ECONOMY
Unloadingon route
Warehouse for Warehouse for
Mall A 2 loads and 2 unloads Mall B As a sustainable development practitioner OPPEIN promotes waste reduction and resource utilization via the 3R principle.Non-arterial transportroute
warehouse distribution
Full truckload distribution Less-than- Truck load Reduce
Full truckload Nonarterialtransport for multi-dealer distribution End customer
warehousedistribution modelware Distribution Mall Factory
house distribution Warehouse 3 loads and Destribution
( Destination) We integrate circular economy into product design using renewable materials and modular design to extend product life.warehouse 3 unloads
3 loads and 3 unloads (Starting point) We use high-quality raw materials like quartz stone and glass to improve product quality and reduce reworks. The Group
2 loads and 2 unloads
Fulltruckload distribution for single-dealer builds green AI factories uses intelligent plate cutting and energy management to reduce material loss and enhance
Arterial transport route resource efficiency. We collaborate with suppliers on sustainable solutions like eco-friendly processing and lightweight
warehouse distribution packaging and optimize logistics to reduce carbon emissions.Fulltruckload arterial transport
Factory
route warehouse distribution
warehouse Mall warehouse/ End customer
model Full truckload Centralwarehouse Destribution
Reuse
(Starting point) ( Destination)distribution
2 loads and 2 unloads We focus on the efficient use of wood resources prioritizing the selection of suppliers with FSC-FM forest management
certification to establish a transparent and traceable supply chain. By supporting sustainable forestry practices we reduce
Direct distribution
Full truckload reliance on virgin forest resources promote the recycling of raw materials and protect the ecosystem. At the same time
distribution for End customer
Full truckload Factory single-customer 1 loads and 1 unload
we enhance the recycling of water resources in the production process and use recyclable steel pallets instead of wooden
directdistribution model warehouse
(Starting point) pallets in transportation to effectively reduce
2024 Performance
Full truckload End customer Direct End customer B Recycle
distribution for 1 loads and 1 unload destribution Total amount of non-
multi-customer
hazardous waste produced We deeply integrate the concept of recyclability into modular
232200 design enhancing the recovery efficiency of waste materials tons
End-storage reconfiguration through standardized components and easy-to-disassemble
Of which recyclable waste structures thereby reducing resource consumption. Concur-
We're promoting dealer logistics models like one-loading-one-unloading to cut terminal warehouse area and number 226100 tons rently we build a harmless waste recycling system. In the
integrate resources lower logistics costs and unify delivery standards reducing shipping damage risks. Rebuilding end
reporting period the Group generated 232200 tons of
warehouses also boosts logistics efficiency and first-time installation success optimizing time and energy costs. Recovery rate of non-hazardous waste:
97.38% non-hazardous waste with 226100 tons recyclable achieving a 97.38% non-hazardous waste recycling rate.
2024 Performance Emission reduction from vehicular transportation
We're replacing high - emission vehicles with new energy buses.Annual gasoline savings
We also sign safety and environmental agreements with vehicle
19900 cubic meters carrier companies. These agreements prohibit uncertified or sub - Case: Home Renewal Inclusive Action
Annual diesel savings standard vehicles from transporting goods and require carriers to
11000 cubic meters properly handle waste and save energy. Responding to government policies encouraging the circular
During the reporting period we purchased and leased out 6 new economy we launched the "Green Home Renewal Inclusive
Reduction in carbon dioxide energy buses saving 19900 liters of gasoline and 10100 liters of Action" in June 2024. It was recognized by the Ministry of
emissions: approximately diesel yearly. This cuts CO2 emissions by about 71.63 tons and Commerce and included in its 2024 consumption promotion
71.63 tons reduces pollutants like nitrogen oxides and particulate matter by activities list.
around 378.50 kg.
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ECOSYSTEMS AND BIODIVERSITY Energy-saving and environmental protection promotion
Aligned with national emission reduction
We emphasize ecosystem and biodiversity protection aligning with China's Biodiversity Conservation Strategy and Action
goals the Group issued resource conser-
Plan (2023-2030). In new projects we assess ecological impact to ensure that the project location will not have a negative
vation guidelines and encouraged staff to Energy Promote natural
effect on the ecological environment. In the production process we strictly implement clean production standards imple- Scientific use of Conservation lighting and
identify efficiency improvements. air-conditioning and Emission reduce lighting
ment various pollution prevention and control measures effectively manage the risks of soil and groundwater pollution to reduce running Reduction
Dedicated teams monitor energy use and Initiative power consumption
and strive to reduce the burden of production activities on the environment. We also engage in eco-protection activities
enforce compliance through audits
focusing on local ecosystems and rare species. Reasonable use of
implementing water/electricity conserva- elevators reduce Strengthen equipment
None of our production bases are in national nature reserves or priority biodiversity areas and we have no biodiversity-im-
tion measures enterprise-wide. the frequency of
management effectively
elevator rides Practicing the concept reduce energy pactful projects as of the reporting period. of water conservation consumption
and developing
water-saving habits
Case: Greening Guangdong's ecological construction
Case: Qingyuan base environmental management trainin
Guangzhou Oprah Public Welfare Foundation has donated nearly 1 million yuan to support green Guangdong
ecological construction funding activities in Meizhou townships and participating in Guangzhou's "green The Qingyuan Base integrates environmental management into annual training programs covering facility
Baiyun" initiative by planting trees in Baiyun District. These actions improve the local ecosystem and promote operations and hazardous waste handling. Departments execute tailored training to ensure personnel compe-
sustainable development. tency through assessments.Environmental friendly action
We encourage all employees to firmly establish the concept of a green
ecology guide them to pay attention to the ecological environment
PRACTICE ENVIRONMENTAL CONCEPTS and resource recycling through practical actions and deeply practice a simple economical and low-carbon lifestyle. This helps employees
The Group implements green production strategies integrating energy conservation and resource recycling across and all sectors of society to share environmental responsibilities and
operations. Green office practices include paperless workflows energy-efficient lighting and virtual meetings to contribute to building a beautiful planet.minimize environmental impact. The Group was honored as the "2024 Jianggao Town Outstanding Company of Trash Separation".
075 077 079 081 083 085 087 088SUPPLY CHAIN
04 Efficient stringent and eco-friendly supply chain construction is the key to ensuring the sustainable development ofOPPEIN. OPPEIN leverages its scale and brand advantages to drive digital supply chain transformation pursuing “quality enhancement cost reduc-tion and system upgrades. ” The company continuously optimizes
its supply chain to align with its integrated home furnishing model
while strengthening partner collaboration to build a sustainable
green ecosystem.OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
SUSTAINABLE PROCUREMENT 2024 Performance Material safety guarantee
We prioritize material safety as the cornerstone of responsible
The Group consistently implements responsible procurement practices. In Suppliers certified with ISO 9001 procurement. By ensuring the safety and reliability of raw materials
compliance with China's Tendering and Bidding Law and other relevant Quality Management System in the supply chain and strictly monitoring the environmental
regulations we have established the "OPPEIN Procurement Bidding Manage- 580 health and safety (EHS) standards of our suppliers we endeavor to
ment Policy" to standardize procedures unify material specifications and provide customers with safer and more reliable products for their
Suppliers certified with ISO 45001 homes.ensure consistent quality standards.We enforce procurement standards that
Occupational Health and Safety We have established a rigorous raw material quality and safety
exceed national requirements particularly for engineered wood and adhe-
Management System inspection system. Under "New Materials (Products) Evaluation
sives. Our rigorous inspection process prioritizes recyclable renewable and 285 and Trial Management Regulations" we require suppliers to eco-friendly materials while strictly ensuring material safety and ethical 家 provide MSDS third-party test reports and other documentation.management practices. Our CNAS-accredited laboratory conducts random safety tests to
verify products meet flame retardancy corrosion resistance
*Supplier FSC-FM Forest
Management Certification load-bearing requirements as well as chemical limits for formalde-
hyde TVOC and toluene.Additionally we implemented "Contrac-
Environmentally friendly guarantee tor Safety Management Regulations" specifying occupational
health and safety requirements for suppliers and contractors. We
To establish a green procurement supply chain that meets domestic market require- verify safety certifications sign safety agreements and mandate
ments we rigorously implement environmental standards starting from material selec- proper protective equipment and safe working environments to
tion. In accordance with "Raw Material Procurement Technical Standards" we give eliminate occupational hazards ensuring comprehensive safety
priority to suppliers with China Environmental Label (Ten-ring) Certification and throughout raw material production.require them to submit "Material Composition Declarations" committing to exclude To strengthen supply chain quality and safety management
OPPEIN continuously improves its supplier accountability mecha-
environmentally harmful substances. We are accelerating the substitution of raw mate- *Antimicrobial mark trial *Product analysis and
qualification certificate inspection report nism implementing quality traceability and assessment systems
rials with low or no volatile organic compounds (VOCs) requiring suppliers to comply to enhance product quality. During the reporting period 580
with relevant environmental standards including HJ/T 432-2008 for kitchen cabinets suppliers achieved ISO 9000 or equivalent quality management
HJ 2547-2016 for furniture and HJ 459-2009 for wooden doors along with other certification while 285 obtained ISO 45001 occupational health
and safety certification.*Chinese environmental labeling national environmental requirements thereby providing solid assurance for creating
product certificate provided of environmentally friendly products. 2024 Performance
the suppliers Integrity guarantee
We rigorously manage wood sources 2024 Performance Signing rate of the Supplier In supply chain integrity management we have established comprehensive
by prioritizing suppliers with strict The proportion of wood/paper raw Integrity Cooperation Commitment regulations including the "Work Management Rules for External Departments"
traceability systems to eliminate "Audit Operations Guidelines (Trial)" "Points Management Procedures (Trial)" materials sourced from the place of origin 100% and "Ten Prohibitions" for Supplier Interactions which strictly regulate employ-
illegal materials. During the report- 100% Supplier Integrity Training ee-supplier engagements to prohibit all forms of bribery and maintain fair
ing period 100% of our wood/paper 2 times ethical business practices.Raw materials purchased met ENF
materials were traceable to their To build a fair just and transparent business environment we incorporate the
certification standards
origin all purchased boards met ENF "Integrity Cooperation Commitment Letter" into all procurement contracts with
certification standards and 307 100% OPPEIN and its affiliates. The document clearly specifies each supplier's integri-
ty obligations outlines prohibited misconduct and provides whistleblowing
suppliers maintained ISO 14001 Suppliers certified with ISO14001 channels -ensuring transparent cooperation that safeguards mutual interests.environmental management system environmental management During the reporting period 100% of our suppliers signed the Integrity Cooper-
system certification ation Commitment Letter and we conducted two integrity training sessions for
*Supplier environmental management suppliers.system certification 307 *Integrity Cooperation Commitment Letter
091 100902OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
ESG assessment
2024 Performance
We have deeply embedded ESG assessment into the full lifecycle management of
supplier collaboration establishing a three-dimensional evaluation framework Suppliers with
covering environmental responsibility social accountability and governance
Supplier Sustainability
integrity efficacy. This framework systematically identifies improvement opportunities for
awareness suppliers in critical areas such as resource utilization efficiency labor rights protec- Certifications559
program
tion and business ethics compliance driving the transformation of supply chains
from compliance-driven control to value co-creation. signed and complied
By implementing a dynamic "evaluation-feedback-optimization" management with the Group’s Code
loop we strengthen sustainability consensus across the supply chain empower of Conduct for Supply
suppliers to enhance ESG governance capabilities and jointly build a more resilient
Chains
industrial ecosystem under the "dual-carbon" transition.During the reporting period 2071 suppliers had signed and complied with the 2071
2024 Performance SUPPLIER MANAGEMENT Group’s Code of Conduct for Supply Chains with 559 suppliers holding recognized
sustainability certifications.Supplier Database Coverage The Group is committed to optimizing its supplier management system
2071 prioritizing the development of high-quality industry resources and estab- OPPEIN Supplier ESG Assessment System
lishing a categorized supplier database. Suppliers are classified into primary Evaluate suppliers' energy consumption and emissions and request energy audit
and reserve pools based on utilization with a dynamic evaluation mecha- Environmental reports to ensure compliance with environmental standards.Among themDomestic Suppliers nism in place to continuously enhance supply chain quality. Through digita- assessment indicators Check suppliers' waste disposal methods and encourage the use of environmentally
2，062 lization intelligentization and process-driven management we elevate the friendly treatment technologies to reduce environmental impact.
sustainability of supply chain operations. We treat small and medium-sized
enterprises (SMEs) equally actively seeking collaboration opportunities to Examine the supplier's employee rights and benefits protection including wages andSocial assessment
Overseas Suppliers benefits working hours labor safety etc. to eliminate illegal labor practices.foster long-term partnerships aimed at improving SMEs' technical capabili- indicators
9 ties and managerial expertise. Evaluate suppliers' community relations focus on their public interest participation and community feedback and promote suppliers' fulfillment of social responsibility.
Simultaneously we advance the evaluation of suppliers' ESG performance
Local Supplier Ratio aligning development goals with partners to implement a mutualistic Verify supplier governance structures focusing on transparency in decision-making Governance and internal oversight mechanisms to ensure that business operations are standardized.Around99% sustainable development strategy. This approach solidifies a win-win green assessment i
ecosystem and builds a diversified efficient and resilient supply chain ndicator Verify suppliers' business ethics prevent commercial bribery and unfair competition
management system. and maintain a level playing field in the market.Local Procurement Spending Ratio During the reporting period the Group’s supplier database included 2071 ESG support
Around99% suppliers comprising 2062 domestic and 9 overseas entities. The localized As an active practitioner in supply chain ESG development the Group has proactively built a
supply chain strategy achieved significant results with suppliers’ localiza-
2024 Performance ull-chain empowerment system suppoting suppliers’ sustainable growth through core tion rate and procurement value proportion both reaching approximately
pathways including green transition support social responsibility collaboration and gover-
99% ensuring robust supply stability and operational efficiency.
nance capacity enhancement.Number of ESG training We established a supply chain governance exchange platform to share expertise in risk
Supplier ESG management sessions conducted for management corporate strategy and strategic planning with suppliers assisting them in
The Group has deeply integrated ESG management principles into its supplier management framework prioritizing ESG suppliers1 refining internal governance structures improving decision-making efficiency and jointly
oversight across the supply chain. A comprehensive sustainable supply chain management mechanism has been estab- exploring sustainable governance models tailored to the home furnishing industry.lished including ESG Due Diligence Assessment for newly onboarded suppliers. This evaluation covers criteria such as In advancing social responsibility the Group deepened high-quality partnerships with
environmental management workplace safety labor rights and social responsibility. suppliers to elevate corporate social image and brand value; created an employee exchange
Additionally the Group prioritizes partnering with suppliers holding recognized sustainability certifications and mandates mechanism across the supply chain fostering cross-enterprise knowledge sharing and
all suppliers to sign the Code of Conduct for Supply Chains. Through institutionalized and standardized governance we capacity building in labor rights protection occupational health and safety and employee
continuously enhance ESG performance across the supply chain cultivating an eco-friendly and socially accountable welfare thereby driving holistic improvement in social responsibility performance.value chain ecosystem. During the reporting period the Group conducted 1 ESG training session for suppliers.
093 094OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Group support for supplier ESG enhancement
Case: Supplier ESG training
◆ We provide environmental protection tech training for suppliers and share energy-saving and
Technical and emission reduction experience to enhance their environmental management.training support ◆ We conduct social responsibility training to improve suppliers' ability to protect employee rights
and community relations promoting social harmony.management. In September 2024 the Group organized an ESG
training session titled“ Co-Creating Sustainable Value”
◆ We offer green financial resources to assist suppliers in obtaining loans and subsidies for eco - for suppliers. The program focused on four key
Resources and projects advancing their green transformation. pillars:ESG Principles and Strategic RelevanceOp-
collaboration support ◆ We have established a supplier cooperation platform to boost experience exchange and resource pein’s ESG Practices and Compliance Expectations
sharing among suppliers collectively enhancing ESG performance. Supplier ESG Implementation Roadmap with Case
◆ A reward mechanism has been set up for suppliers with excellent ESG performance providing Studies Future Collaboration Scenarios between ESG
Incentive and incentives such as order tilting and honor recognition. and Supplier Partnerships.This initiative clarified the
feedback mechanisms ◆ WWe supply regular feedback on ESG assessment results to suppliers making improvement Group’s sustainable partnership framework with
recommendations to aid their ongoing ESG performance enhancement. suppliers committed to building a resilient supply
Digitalized management chain ecosystem and driving industry-wide ESG advancement in the home furnishing sector.Guided by market dynamics and resource allocation the Group formulated the Oppein Home Furnishing Group Integrated Procurement
Management Guidelines and Oppein Procurement Category & Strategy Regulations initiating a large-scale supply chain refo platform
enables end-to-end procurement process control allowing suppliers to: sign procurement contracts digitally access real-time quotes Direct purchase Supplier confirmation stock Dispatch from Tracking
tender notices purchase orders receive deposit collection alerts and quality anomaly notifications. Order taking ordering picking packaging and labeling logistics progress
By implementing "two closed loops"we achieved integrated procurement synergy between the Group and suppliers enhancing bidirec-
tional communication and accelerating information flow efficiency across the supply chain.*SRM suooly process
6767
Supplier Supplier Identification of Conclude
evaluation classification suppliers contract
连接 Connection
Information
5 8 exchange 5 8
Collaborating Supplier Procurement Place
suppliers phase-out demands Full process orders 协同 Collaboration
Supplier cycle management of
management procurement
4 1 4 operations
共享 Sharing
Qualified Unfamiliar Order
suppliers suppliers Business
Order
closure collaboration
collaboration 标准 Standard
32
Supplier Potential Recon
3ciliation Ship2ping
and
access suppliers management
*Realzeto way communicationbetween the Group settlement
and suppliersthrough "two closed loops"
095096
Purchasing party
Suppling partyOPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Development and access
Supply chain dig欧it派al家iz居a集ti团o股n份 in有i限ti公at司iv ·e 2s024年度可持续发展报告 We continue to standardize the supplier access standards formulate the "Supplier
◆ Leveraging achievements from the large-scale supply chain reform， we refined our digitalization strategy and New Supplier Development and Selection Management Regulations of OPPEIN Home Group Inc."optimized IT architecture to align with evolving operational needs. Development treat small and medium-sized enterprises (SMEs) equally avoid discriminatory access
◆ Partnered with external experts to identify supply chain information optimization pathways and strategically
conditions and strictly implement the new supplier selection process centered on
integrated third-party resources to enhance digital capabilities. and Selection
Building upon the achievements of the comprehensive supply chain reform we have restructured our supply 728 qualification review on-site inspection product appraisal and supplier ◆
chain digitalization strategy to enhance its architectural framework. By collaborating with external partners we turnaround.Based on the type of business we categorize our suppliers into two types
explore optimization pathways for supply chain information systems and leverage external expertise to elevate including production suppliers and non-production suppliers such as traders or Approved and
digital capabilities as required. An annual digitaliza ion road map has been formulated addressing functional agents and we require all suppliers to provide qualification certificates mandated by
modules across the supply chain with targeted solutions including standardized procurement requirements an Regularized national laws and regulations and have implemented a classified access management
e-platform for spot purchases integrated new material development processes material certification workflow 559 system for all types of suppliers. We conduct research and sort out the industrial distri-
restructuring cost database establishmen t price forecasting models automated price renewal mechanisms bution of supply resources analyze their geospatial aggregation or dispersion and
supplier risk alerts supplier performance evaluation systems and confidential price inquiry protocols all imple- potential suppliers analyze the competitiveness level of supply industries in different regions so as to sort
mented according to predefined schedules. out the regional layout plan of suppliers' industries suitable for the company and
◆ We improve system basic data and data labeling to prepare for system application. were rejected due rationalize the selection of suppliers according to the region.to non-compliance During the reporting period the Group evaluated a total of 728 suppliers and selected
56 559 suppliers who passed the assessment and 56 potential suppliers were rejected
Whole process management due to non-compliance.We benchmark the requirements of the world's outstanding home furnishing companies and select the industry's Process of access
first-class and professional suppliers to establish long-term strategic cooperative relationships. We follow a series of
management systems and procedures including "Supplier Development and Selection Management Regulations of
Oppein Home Group Inc." and "Supplier Freezing and Withdrawal Management Regulations of Oppein Home Group Inc." Qualification Review On-site inspection Product Identification Transfer to regular supplier
"Supplier Operation Performance Appraisal Management Regulations of Oppein Home Group Inc." and "Supplier Change
and Replacement Management Regulations of Oppein Home Group Inc." to conduct a whole-process management of
suppliers from the dimensions of development and access due diligence performance appraisal as well as frozen and After receiving the question- Production suppliers must After the supplier passes the After the supplier passes the
exit. naire submitted by the poten- undergo an on-site inspec-tion on-site inspection the Group's above-mentioned process we
tial supplier in the SRM system and review and the on-site supply chain management can sign the procurement
the group engineers conduct a inspection and review team center and demand depart- contract collect the perfor-
preliminary review and a formed by members from the ment conduct appraisals for mance deposit and issue the
pre-review and comprehen- supply chain R&D process small samples and small purchase order and the suppli-
Supply Chain (Material)
continuous assurance sively compare the results of quality and EHS and other batchs. Only after passing the er will be included in the
these reviews. departments and score respec- appraisal can formal coopera- Group's supplier database.tively. tion begin.PerPfoermfoarmncaen acses aessemssemnte npth apshea-soeu-to ut Supplier enhancement (process monitoring and
continuous optimization improvement assistance and training) Qualification
continuous optimization
Supplier type Questionnaire Content
Production
Procurement process
technical Bulk Incoming validation Legal person information; Enterprise qualifications; Production and
standards identification
of samples in materials Production Production business capabilities; Quality and technical capabilities; Pre-sales and
batches inspection questionnaire after-sales service capabilities; Financial information; Affiliated suppliers
etc.Non-production Non-production Legal person information; Enterprise qualifications; Pre-sales and
Cooperation agreement guarantees (quality clauses) Joint development (review and evaluation
of processes quality R&D) questionnaire after-sales service capabilities; Financial information; Agency qualifications etc.Other Simple Legal person information; Financial information
Select top quality domestic and international suppliers questionnaire
*Supply chain digitalization initiatives
097 098OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Due diligence
We attach importance to the due diligence of suppliers and require
production suppliers to undergo on-site inspection and evaluation. The
On-Site Inspections for on-site inspection is led by the supply chain management center and
New Suppliers organized by the supply chain R&D process quality EHS and other
159 related departments to form an inspection and evaluation team to inspect the suppliers on-site and give the evaluation opinion put
forward the optimization direction for the items that need to be
improved and draw the OPPEIN Audit Matrix from the 12 dimensions
and formulate the result table of the inspection and evaluation of the
suppliers. *考察板材供应商关键设备 *关键设备维修记录 *考察板材供应商监控设备 *考察板材供应商生产设备
During the reporting period the Group continued to conduct on-site *Inspection of key equipment for *Maintenance records for critical *Inspection of plate supplier *Inspection of plate suppliers'
inspections for new suppliers with a total of 159 inspections. plate suppliers equipment monitoring equipment production facilities
Gystem management
Aesign Development 100
Contral file control Supplier tier classification management
80 The Group has established a scientific supplier tier classification management system first implementing horizontal
categorization based on procurement category characteristics encompassing business nature product attributes and
Envirormental protection 60
envirorental safety Personnel train service types while simultaneously conducting vertical tire classification evaluations using core metrics including supplier
qualifications creditworthiness historical performance management capabilities and innovation competencies. This
40
integrated approach forms a matrix-based management framework achieving precise resource matching and dynamic
optimization of supplier capabilities.
20
Procuremente Client-relat
management Strategic
supplie
Materials and
finished products Preferred
supplier
Production Support
Noconforming product Warehouse Manag and Auxiliary
handling andling quality" Qualified Supplier type Supplier tire supplier
Classification Classification
Marketing Services
Restricted
Surveillance measurementa production process
cont suppliersof products
Measuring equiment Administrative
and gauges Supplies and Services Eliminated of
suppliers
*OPPEIN Audit Matrix Chart
099 100OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Performance appraisal 2024 Performance Freezing and withdrawal
The Group has formulated the "Supplier Operation Performance Appraisal Management Regulations of Oppein Home In order to ensure standardized management of the supply chain we
Group Inc." to promote the standardized control of suppliers and improve the management level of suppliers. Supplier have formulated the "Supplier Freezing and Withdrawal Management
operation performance appraisal refers to the implementation of dynamic management of suppliers within the system Terminated suppliers due to Regulations of Oppein Home Group Inc." to improve the operating
assessing their technology quality cost response and delivery safety and environmental protection and other aspects of non-compliance
the ability to measure the level of their supply. The Group adopts unified evaluation standards to conduct fair and impar- 13 procedures and requirements for each link in the supplier frozen and
tial evaluation of suppliers and the results of the evaluation serve as the decision-making basis for the allocation of suppli- exit process and ensure that the quality of products or services
ers' purchasing shares the superiority and inferiority of suppliers the assessment of the type of cooperative relationship provided by suppliers meets OPPEIN and customer requirements.of suppliers and the selection of products for participation in research and development. During the reporting period the Group had a total of 13 suppliers
The Group assesses suppliers on a monthly/annual basis and formulates monthly/annual management flow charts and
whose cooperation was terminated due to non-compliance.the Supply Chain Center Quality Department Purchasing Department Planning and R&D Department jointly carry out the
operational performance assessment of suppliers. The monthly performance appraisal only assesses the quality
response and delivery performance. The quality and response and delivery performance are assessed according to the
respective scoring rules of each business line and the final output is "red yellow and green" light information. The annual Freezing Withdrawal
performance appraisal is a comprehensive performance appraisal supplier's technology quality cost response and
delivery safety and environmental protection dimensions are measured comprehensively and the final output is "excel-
lent" "qualified" "limited" and "eliminated". The final output will be publicized.During the reporting period the Group conducted performance appraisals on all non-one-time procurement suppliers Supplier voluntarily withdraws
with a total of 1064 suppliers assessed. Suppliers experience major financial anomalies
Eliminated from the Group when any of the
Technical appraisal Response and delivery appraisal following occurs:
2024 Performance Suppliers commit supply irregularities a.Suppliers rated as "Eliminated" in Annual Evaluation
b.The product or service supplied by the supplier is
Evaluate the supplier's independent Evaluate supplier's on-time delivery no longer required
Performance appraisals R&D capability product trial produc- supplier's delivery standardization c.Supplier's annual operation performance is evaluated as
tion capability product stability R&D delivery coordination service and Suppliers have serious abnormal supply behavior on all non-one-time eliminated
services and other technical aspects responsiveness for monthly and d.Audited as an unqualified supplier due to significant issuesprocurement suppliers for annual appraisal.
1064 annual appraisal.
in daily operation
Safety and Environmental appraisal Quality appraisal
*Freeze and withdrawal scenarios
Evaluation of the supplier's product
Cost appraisal environmental protection including Evaluate the supplier's incoming
formaldehyde emission TVOC release quality compliance use quality
Evaluate supplier's on-time rate heavy metal content and other compliance customer quality integri-
delivery supplier's delivery harmful substances testing involving ty events and major quality anoma-
standardization delivery water electricity gas flammable and
lies for monthly and annual appraisal.explosive products that have a signifi-
coordination service and cant impact on the safety of personal
responsiveness for monthly property the need for its product
and annual appraisal. safety indicators for the annual
appraisal.* Supplier operational performance appraisal
10901 10092OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Tier-two supplier management
Supply assurance management
To improve the supplier management system and ensure supply quality and stability the Group formulated the "Designat- Annual capacity assessment and capacity implementation supervision of suppliers; release of supply
ed Tier-two (and above) Supplier Management Regulations of Oppein Home Inc." to strengthen management of such information of tier-two suppliers through the "Group's designated tier-two suppliers' information filing".suppliers. "Designated Tier-two (and above) Supplier " refer to suppliers the Group designates to provide materials and The existence of commercial disputes coordinated by the Group's Supply Chain Management Center shall
finished products to its first-tier suppliers which process them and sell back to the Group (referred to as "tier-two suppli- not arbitrarily stop the supply of products.It is strictly prohibited to replace or counterfeit products of
ers"). The Group has integrated these tier-two suppliers into its supplier system management standardizing their business tier-two suppliers.processes responsibilities and operations throughout the supply chain. It also requires all responsible parties to fulfill
management duties for OPPEIN designated tier-two suppliers forming an effective quality control mechanism continu-
ously building an efficient reliable competitive supply chain and striving to create a benign supply chain ecosystem.Quality assurance Management
Principles and approval requirements
The tier-two suppliers will be included in the quality management system for management and the
The designation of tier-two suppliers strictly implements the principle of "Competition". Each demand management rules and corresponding quality default treatment methods will be formulated for the
department designates a tier-two supplier and initiates a formal official document for signing and approv- process to be monitored and the results to be controlled.al which is signed by the head of the relevant department and finally approved by the President's Office.Business regulation and management Delivery management
The tier-two suppliers shall be included in the unified management of the supplier system with reference Formulate a management mechanism for the integrated management of the delivery of secondary
to the management of the "Management Regulations on Procurement Development and Supplier Selec- suppliers as well as a penalty program for the delivery of abnormalities in the delivery of secondary
tion of OPPEIN Home Furnishings Group". The suppliers and tier-two suppliers with business connections suppliers that result in the suppliers' inability to perform the delivery of goods to the Group.shall sign a multi-party agreement.*Group Designated Tier-two (and above) Supplier Management Specification
Training and communication External supplier training and communication Internal supply chain personnel training
We regularly conducts supplier training and communication activities covering procurement We conducts various forms of supplier communication including The Group strengthens internal supply chain personnel training by inviting high-level
expertise negotiation skills supply chain management and laws and regulations to improve supplier visits global supplier conferences quality audits analysis lecturers for job-specific skill training establishing a business knowledge sharing
the team's overall business level. It values good cooperative relationships with external meetings seminars communication sessions and counseling in order platform enhancing team case reviews and competitor product analysis and formu-
suppliers actively conducting training and exchange activities and expects all supplier to establish good communication mechanisms and support channels lating work manuals and requirements to speed up new employee onboarding. It
partners to progress together and pursue "Common evolution Win-win sharing". ensuring collaboration mutual benefit and quality synergy. strictly controls product input quality and mandates certification for job eligibility
During the reporting period the Group conducted a total of 75 supplier training sessions with through mandatory testing ensuring personnel acquire professional skills and
152 suppliers participated. knowledge to fulfill supply chain management duties.
2024 Performance
Total Supplier Training
Sessions Conducted Participated suppliers
75次152
*Seminar for external suppliers *Internal supply chain personnel training
019013 100942PRODUCTS AND SERVICES
05 OPPEIN adopts the "consumer-centered home furnishings with airplane-building spirit" concept implements the "quality + service" dual-drive strategy to build unique core product competitiveness deepens service value expands multi-channel layouts and drives brand/service model upgrades. Integrating sustainable development into
all production/service links it increases green/healthy product supply accelerates
smart home innovation continuously improves product/service quality and strives
to deliver comfortable healthy customized home products and living experiences.OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
PRODUCT QUALITY UPGRADES Management strategies policies and goals
The Group implements the "three characteristics five enhancements two improvements" quality strategy and establishes
the policy of "striving for excellence sincerity in exchange perfection pursuit" focusing on quality/efficiency improvement
The Group has always viewed product quality as the foundation of its business and customer experience as the corner- to advance the quality enhancement plan and continuously optimize products/services to return to business fundamen-
stone of development. As consumers' demand for home environment quality grows it has deeply focused on product tals.quality—from Asia's large-scale smart manufacturing to industry-leading AI technology and national testing standards—
leading the integrated home furnishing era through efficient intelligence and craftsmanship in R&D. Quality policy
Strive for perfection;
Product quality assurance Sincerity for sincerity;
Quality Quality Pursue excellence.The Group complies with the "Product Quality Law of the People's Republic of China" and applicable quality regulations/- policy goals
standards in its operating regions actively deploys the Quality Change 2.0 strategy initiates organizational quality reforms
carries out a series of quality improvement projects establishes a product quality management system builds an integrat-
ed quality assurance system and continuously enhances product quality and efficiency. Quality goals
Finished product shipment inspection pass rate of not less
Quality management system Quality than 95%;
strategy On-time delivery of product orders is not less than 92%;The Group formulates quality management systems including "OPPEIN Home Group Quality Management Regulations"
Product quality reputation score of no less than 8.0."Quality Assessment Management Regulations" "Quality Integrity Management Measures" "Quality Veto Assessment
Mechanism" "Quality Breakthrough Award Incentive Mechanism" and "Logistics Quality Audit Management Norms"
among others to improve the system covering the full product lifecycle—development production logistics sales etc. It
refines management modes to pursue a "prevention-oriented" goal ensuring lifecycle quality safety and control. During Quality strategy: Three Characteristics Five Dimentions and Two Enhancements
the reporting period the Group and subsidiary Aowei Decoration Material Co. Ltd. obtained ISO9001 and GB/T19001 dual Three:customer demand compliance management system suitability quality improvement systematic
quality management system certifications. Five:quality management informationization quality inspection automation personnel specialization
standardization of the underlying logic of quality management and quality improvement driving mechanism
Two:product quality enhancement customer satisfaction enhancement
R&D quality Design quality Raw materials quality
Construct a quality assurance ◆ Group Universal Basic Empow- ◆ Quality and reliability
system for R&D based on the erment System + Knowledge testing system changes
integrated home. Academy ◆ New product quality control
◆ Design process app + system system changes
interaction
◆ Visualizing Dullness Preven-
tion
Process quality Transportation quality Installation quality
◆ Breakthrough in automat- ◆ Innovative reforms of trans- Sub-legacy accurate identifica-
ed inspection of dimensional portation modes such as tion + hierarchical classification
IQNET quality management CQC ISO9001 and GB/T19001 quality
system certification management system certification edges "shuttle bus system" and "with
and control multi-legacy has
been effectively prevented and
◆ AI visual inspection + quali- care" controlled.ty cloud platform deepening ◆ Great Delivery Reform
application Project
*Panorama of the Group's quality evolution
107 108OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Quality organizational revolution and outcomes Results of process-wide quality change during the reporting period
Through quality organizational changes IT construction automated inspection technology/system development and raw
material/design quality control systems the Group achieved a consolidated quality reputation of 8.17/10 (up 7.28% The Group constructs and iterates the design quality control system empow-
year-on-year) an 18.91% improvement in total legacy rate over 60% improvement in automated edge size defect inspec- ers terminal initiatives through in-depth external collaborative marketing to
tion and about 30% higher quality system efficiency. During the reporting period it optimized quality assessment improve design skills: developing a design process mini-program and the
management requirements/scoring rules and newly implemented the "OPPEIN Home Furnishing Group Quality Break- ZhiXueTang platform with 426 online universal design courses 41 live broad-
through Award Special Incentive Measures" providing incentives to organizations/employees with outstanding quality Design quality revolution casts (over 25000 clicks) achieving a terminal designer certification rate of
contributions after fair evaluation to encourage all staff to meet quality goals. ~70%. Internally it strengthens error-prevention design technology to reduce
Quality assessment Quality brakthrough incentive awards source errors: improving 227 items/48 problem types and intercepting
160000+ issues.
Quality veto assessment mechanism Quality integrity management approach
Through systematic reforms in material quality control—including the estab-
Quality assessment data audit Quality critical negative event management lishment of key reliability test standards (swelling chipping dirt scratch) and
procurement quality enhancements—we achieved a 100% year-on-year
Quality accident management Raw material quality revolution increase in the traceability accuracy of abnormal material quality losses.Concurrently raw material loss costs were reduced by 22% and total material
*Partial quality management measures loss costs decreased by 66%.Quality system construction In factory quality management the deepened application of automated
testing has driven a shift in process quality from full-range control to focused
Technical application Quality improvement outcomes Process quality revolution qualitative improvement with this approach gradually extended to the
The five quality clouds of customer-design-material-process-transportation supply chain. This has significantly enhanced defective rate detection accura-
are constructed to realize the precise control of each module process online cy leading to a substantial reduction in factory rework costs.Quality cloud establish a unified and systematic management platform guarantee the
Macro-model changes
system construction quality of each link and improve the timeliness and effectiveness of internal have been effective in
information transmission as well as the satisfaction of end customers.reducing transporta-
QAS opens up the Group's underlying quality data realizes online manage- tion loss with a
ment of data statistics analysis query and early warning realizes accurate
Quality data online operations 25.06% improvement and traceable data acquisition and improves the efficiency of data statistics Improvement of t in overall transporta-
by more than 30%. ransportation loss tion loss through the
The iterative deepening of the legacy accurate responsibility system and the
Deepening the application use of iron pallets iron
Habitat code-scanning legacy ordering system has further expanded the cage trucks and other
of the quality platform
utility of the platform and further improved the efficiency of each module. carriers.
109 110OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Quality culture Chemical safety
Promoting key quality systems/mechanisms/policies the Group formulates
the "OPPEIN Home Group Quality Talent Certification and Empowerment The Group complies with Chinese and overseas chemical safety laws/regulations including the "Regulations on the
Management Standards" establishes base quality committees to clarify Administration of Controlled Chemicals" and "Hazardous Chemicals Safety Management Regulations" and formulates
Cultural training responsibility entities and adheres to the quality culture spirit of "focus on internal rules like the "OPPEIN Furniture Group Dangerous Chemicals Management Regulations" to strengthen chemical
78 times core monitor key areas deepen on-site efforts benchmark standards and management. It identifies tracks and assesses risks of chemical substances throughout the product lifecycle managing
ensure full participation" to maintain quality accountability. It organizes
regular quality training—including pre-service education online courses and reducing impacts on environment health and safety to ensure employees are safe from workplace hazardous chemi-
Cumulative coverage and case studies—to enhance employee quality awareness improve cals and consumers are not exposed to toxic substances in daily use.
1756person times professional skills and promote "shared responsibility" through quality During the reporting period the Group's products passed the China Environmental Labeling Product Certification and the
empowerment. During the reporting period the Group and its bases environmental performance indexes of the materials used in whole-house customized home furnishing products complied
conducted 78 quality culture trainings reaching 1756 cumulative partici- with the relevant national standards of which the formaldehyde emission of the sheet materials complied with the current
pants. highly demanding European standards (E1 level).Some quality culture training conducted by the Group
Chemicals management
The Group has formulated "Chemical Management Standards" to strengthen access control for chemical use/storage
areas implementing detailed records of chemical inventory/requisition. It posts Chinese labels and Safety Data Sheets
(SDS) for on-site hazardous chemicals and requires operators to wear standardized labor protection equipment. Regular
toxic/hazardous gas concentration testing is conducted at operation sites with pre-、in-、and post-employment medical
Qingyuan base "Factory Quality Portrait" training Qingyuan base "size & edge automation inspection
examinations arranged for employees exposed to such gases to protect their occupational health and safety.deterioration reversal empowerment" training Chemical safety management code and acceptance
Element Specification Receiving and inspection methods
Preparation of regulatory
requirements and chemical type
Standardized ledger information for plant use Inspection of chemical ledgers + regulatory requirements for chemical management
ledgers storage and responsible persons.Wuxi base "Quality Mechanism" training Tianjin base "PDCA cycle 5M1E analysis" training The site where chemicals are
stored and used should have the On-site inspection of the chemical storage area use area
Visualization necessary safety risk communi- visualization signs MSDS and other basic information is
Product recall cation MSDS and related complete and correct
The Group formulates and improves raw material certification standards and quality control processes strengthens warning information.supply chain production and transportation management conducts supplier qualification reviews and raw material
sampling inspections and implements whole-life-cycle quality health and safety risk control to minimize product recall Create a special safety checklist Special
risks at the source. It also enhances product recall emergency plans per the "Non-conformity and Corrective and Preven- and conduct regular special Check the status of factory inspections carried out at least 1
tive Measures Management System" establishing a rapid response team publicly updating progress and revising plans inspection safety inspections with a certain special safety inspection before acceptance
timely to reduce profit brand and consumer confidence impacts. Going forward it will optimize supplier/raw material frequency.audits strengthen digital risk control and comprehensively improve product safety/environmental quality control to Production of specialized safety
deliver higher-standard products. ◆ Check that plant training is carried out and that at least 1 training materials and regular
During the reporting period we did not experience any product recalls due to product quality health and safety issues. Specialized special safety training is carried out before acceptance;implementation of a certain
training ◆ Ask authorized employees about their training and knowl-
Product safety and health frequency of specialized safety edge of chemical safety risks and knowledge.training.According to the "China Healthy Home Consumption Cognition Survey" over 85% of On-site storage should have
consumers prioritize health when purchasing home products. In a health-conscious explosion-proof cabinets ◆ Inspect chemical safety settings in the storage area and
national context the Group focuses on people-oriented innovation committing to 精益 On-site eyewash electrostatic appara- assess explosion-proof cabinet specification settings;
developing healthy eco-friendly low-carbon home products. It ensures whole-house 求精 management tus fire sand leak-proof trays. ◆ Manage on-site chemical use including dispensing
customized products and raw materials comply with "Environmental Labeling Product Also manage personnel PPE containers and employee PPE wear.Technical Requirements" standards to create an environmentally friendly and healthy equipment and dispensing
living environment for consumers. containers as required.
111 112OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
During the reporting period the Group conducted chemical safety training for on-site staff at hazardous chemical sites and Chemical disclosure
allowed them to take up their duties only after passing the assessment thus ensuring that the on-site operators were fully
aware of the hazardous characteristics of the chemicals and familiarized with the specific processes and requirements for We set out in the product manuals the product hazardous substance limit table which shows consumers the hazardous
emergency response. substance limits of veneer boards paints stone adhesives and other raw and auxiliary materials used in household
products.OPPEIN kitchen cabinets raw materials hazardous substance limit table
*Specialized training for chemical-use positions *Improvement of chemical dispensing operations for
edge banding machines
Chemical testing recognition
The Group has met the "Brand Evaluation of Healthy
Kitchen Cabinets" (T/GIEHA 061-2023) standard
issued by China Brand Building Indoor Air Brand
Cluster and Guangdong Indoor Environmental
Hygiene Association passing assessment by an
industry-designated third-party certifier. Sampling
audits showed 100% compliance in indicators like
formaldehyde emission TVOC emission rate
antibacterial rate and antibacterial durability
awarding the "Healthy Kitchen Cabinets" brand Healthy Kitchen Cabinets
mark. Its other home products also met the "General Brand Identity
Rules for Evaluation of Healthy Whole Home
Customization" (T/CFDCC 0607-2023) being recog-
nized as green home products.
2024 Performance Prohibition of chemicals
The Group prohibits the use of banned chemicals and outdated
chemical production processes strictly requiring suppliers to
self-declare product ingredient lists and the presence of hazard-
No ous substances and to timely provide hazardous substance test
reports (e.g. from third-party authoritative national testing
Incidents and fines related to chemistry organizations such as SGS CTT ITTC) Material Safety Data Sheets
(MSDS) product ingredient lists and confirmations of environ-
mental management changes. It conducts occasional sampling
Not used tests for chemical indicators like formaldehyde TVOC and toluene through internal labs and external third-party organiza-
Any prohibited chemicals tions and uses information technology to supervise the entire
process of chemical access formulation use and supplier
compliance. This ensures every product meets environmental
quality management system requirements and local regulations
on prohibited/restricted chemical use.During the reporting period we did not incur any major incidents
and fines related to chemicals and did not use any prohibited
chemicals.
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Thoughtful design and safe workmanship
Case: Aging-friendly design
Guided by ergonomic principles we prioritize convenience user-friendliness and safety in product design aiming to
create safe comfortable and warm home environments for our customers—incorporating care and attention into every
design detail while pursuing craftsmanship excellence to achieve the highest quality standards. Our products are manufac-
tured using state-of-the-art international equipment ensuring excellent environmental performance and durability. The
hinges and rails in our products are reliably durable guaranteeing decades of trouble-free use.Case: Healthy decontamination design
Wardrobes sub-closet area Comprehensively antibacterial healthy kitchen
deodorizing aromatherapy
module We launched a new generation of antibacterial healthy kitchen
with core components like healthy materials appliances and
accessories for users' health. The OPPEIN Health+ antibacterial Drinking fountain + medication area for the Duplex beds reduce tossing turning and
plate uses OPS-1 supramolecular silver antibacterial technology elderly to access medication in an emergency getting up to interfere with partner's sleep
for long - lasting cyclic antimicrobial performance keeping a
99% antimicrobial rate after over 5000 scrubs. The new photo-
catalyst antibacterial technology in quartz stone countertops
and sinks also reaches a 99% antibacterial rate. Kitchen accesso-
ries feature disinfecting lighting easy - clean nano - antibacterial
sinks and antibacterial baskets.Handrails are integrated into the
whole house design such as cabinets Trip door design reduces risk of stumbling
bedside thin cabinets etc.Night rise automatic sensor night light Bedside emergency call button
115 116OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Product diversity and modularity
We offer diverse whole-house design styles covering mainstream trends and niche needs providing customized solutions
for individual requirements while incorporating safety designs for children aging-friendly features and smart technology
to meet varied family needs and expand application scenarios. Using detachable modules we create flexible multi-func-
tional living spaces with growth-oriented designs ensuring furniture adapts to customers’ evolving needs across different
life stages.Product accessibility
Home is more than a physical living space—OPPEIN understands the beautiful home visions behind every individual's
home furnishings launching the "234+N Happy Life Equation" to enable everyone to enjoy happiness at home. Through
product diversity affordable pricing service localization and efficient production it achieves accessibility of whole-house
customization ensuring consumers—regardless of location budget or needs—can obtain "tailored" home solutions and
comprehensive caring service at reasonable costs breaking through time space budget and resource limitations in
customized home solutions. LDKB de-living room one-piece design
Integrating sports and fitness area children's play area home theater area parent-child reading area toy storage area
Brand recognition and trust and study room it creates a warm and interactive space for the whole family to enjoy each other's company and love
each other.We prioritize long-term brand investment consistently sharing brand stories to convey the "love of home" culture building
emotional connections with consumers via diverse social media to strengthen brand identity and embed the OPPEIN
integrated home concept in people’s minds. Through advertising KOL collaborations and showcasing real customer
cases we boost brand visibility influence and trust. Additionally we set industry-leading safety environmental and
health standards and provide authoritative panel test reports to enhance consumer confidence.Case: "The 100 Chinese New Homes" program
We partnered with Youju's "Dear Home 100" column to create the OPPEIN "100 Chinese People's New Home"
documentary which shares stories of 100 Chinese families building new homes leveraging our total design "Micro-variable structure" region
one-stop matching and integrated services to resonate with consumers and explore better life solutions. Mean- Two sets of flexible removable floor cabinets baby care period can meet the baby supplies storage night
while we collaborated with 4 million bloggers to create exclusive "amazing new homes" from diverse family feeding diaper changing and other operational functions; later move the floor cabinet module can be trans-
structures and home-life needs perspectives. formed into a dresser or desk to meet more needs.Removable twin bed with drawers Growing children's room design
117 118OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Price affordability Supply chain and After-sales service Policy and industry
We operate four major brands—miform (high-end) delivery efficiency guarantee support
OPPEIN (high-end) OPLONI (national) and OPLIA (light
We shorten the customiza- We continue to improve the We lead and participate in
luxury fashion)—with diversified product lines covering
tion cycle through intelli- after-sales service guaran- developing industry and
high medium and low price points offering clear and
gent manufacturing to tee system the establish- group standards establish-
transparent pricing to meet different budget needs.achieve fast delivery; at the ment of consumer feedback ing standardized design
Through internal quality improvements and efficiency
same time we create a rapid response system to installation and acceptance
enhancements we actively promote inclusive home
integrated home logistics ensure that customer criteria to enhance industry
campaigns like "green inclusive upgrades" and consis-
model optimize inventory complaints are timely transparency. In cities
tently implement a "good yet affordable" product
management and logistics response and proper offering subsidies for
policy delivering tangible benefits to consumers and
and transportation system resolution; at the same eco-friendly home
enabling more Chinese families to enjoy a higher-quali-
to reduce the product trans- time the launch of the products we actively
ty lifestyle.portation time and OPPEIN Golden Butler respond to national initia-
Products and services accessibility safeguard the distribution service to enhance the tives by promoting subsi-
We offer integrated online-offline product experience channels using official websites e-commerce platforms and social capacity in remote areas by value of the full life cycle of dized activities for environ-
media to lower customer access barriers while operating numerous physical stores that create immersive living-scene cooperating with local the product. mentally friendly home
spaces for on-site material craftsmanship and service experiences. With over 7900 stores worldwide we provide full-pro- professional logistics products indirectly reduc-
cess services including door-to-door measurement design installation and after-sales support. companies. ing consumer costs.Case: Lifestyle scenario
In 2024 we launched "IP+Narrative" to present diversified lifestyle scenes approaching and impressing users
through spiritual and emotional resonance guiding their lifestyles to create more diversified lifestyles for
consumers. We accurately depict mainstream user profiles locate core living scenes develop lifestyle function
modules of "mainstream house type + reasonable space layout + two-way activity line + diversified storage
methods" sell N living scenes and lifestyles and customize life for different families.Design empowerment Marketing empowerment
Based on the study of functional modules of The marketing trainer conveyed
lifestyle scenes we build scene designs and diverse the concept of lifestyle space
optional functional modules. scene marketing to the terminal
sales enabling customers to
Terminal empowerment better understand the product
features advantages and applica-
Super shopping guide platform on-line product ble scenes and guiding custom-
function column joint graphic designers to produce ers to change from "product
e-commerce end of the product introduction the thinking" to "space scene think-
product into the life scene refine the product design ing".highlights upgrading the e-commerce platform
from a single product distribution center for
whole-house home one-stop collection place.
10191 120OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
R&D plans and goals
INNOVATION RESEARCH AND DEVELOPMENT The Group prioritizes R&D insists on innovation-driven development continuously conducts independent research to
The Group innovates in technology products models management advance technological and industrial upgrading in the customized home furnishing industry and accelerates the growth
and services adhering to "technology for good" by infusing humanistic of new quality productivity. It strengthens market-oriented R&D management enhances foundational R&D platforms
care into intelligent technology. It focuses on investing in production focuses on advanced manufacturing and boosts technological R&D and reserves to create industry-leading products and
process innovation energy-saving R&D digital manufacturing and cultivate new growth drivers. In the future the Group will continue emphasizing R&D and innovation to maintain OPPEIN’s
smart manufacturing strengthening independent R&D and employee leading position in the customized home furnishing sector.innovation to maintain its leading position in home manufacturing Taking the princi- I m p l e m e n t i n g
through technological advantages and R&D industrialization. By the ple of integrated cross-space color
reporting period end it owns a CNAS-certified laboratory and has been home as the princi- management for
recognized as a national industrial design center won the Guangdong ple turning to the integrated homes
Provincial Government Quality Award established a Guangzhou innovation of realizing joint and
high-level enterprise research institute and post-doctoral research *High-tech Enterprise Certificate integrated home s y n c h r o n o u s
station and is certified as a high-tech enterprise leveraging professional set of space research and
technology to safeguard product quality. research and development of
d e v e l o p m e n t c r o s s - c a t e g o r y
mode and contin- materials of the
uously improving same color and
t the competitive- enhancing the
ness of the wholeness of
integrated home
products.By combining the By connecting the
stability of classic sales system and
*National Industrial Design Center *OPPEIN Group CNAS accredited laboratory products and the product manage-
rapid iteration ment system the
ability of popular back-end product
products it not m a n a g e m e n t
Market Research New Product Testing New Product Introduction Market Launch only enhances the function is
adaptability of the front-loaded to the
product market user side enhanc-
but also meets the ing the front-end
Product Planning Product Evaluation Sample Promotion consumers' pursuit
of personalization Enhance the management and utilization of
user experience
product data to improve the efficiency of accurate and the efficiency and diversification.development. of back-end data
management.*Product development process *Five future research and development plan
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2024 Performance R&D investment and results
R&D investment As a percentage of The Group prioritizes the construction of R&D teams and cultivation
10.23 operating income of high-tech talents establishing home furnishing product R&D RMB billion
5.41% centers business-segment-specific R&D departments and a Milan (Italy) R&D design center. It actively engages in industry-aca-
demia-research collaborations and in-depth school-enterprise
Cumulative R&D investment in the past 5 years partnerships and talent exchanges with professional universities to
RMB55.21 drive technological innovation in the home furnishing industry. billion During the reporting period R&D investment reached RMB 1.023
billion (5.41% of operating revenue) with cumulative five-year
investment totaling RMB 5.521 billion a leading figure in the industry.Our R&D team comprises 1955 pioneering personnel including 45 master’s graduates 972 undergraduates and 938
others accounting for 9.50% of the total workforce. To boost enthusiasm and creativity we adopt a market-oriented R&D
management model with incentive policies such as "Salary Incentives for Design Team Personnel" "Piecework Salary
Incentives for Product Crafts Division" and "Design Award Declaration Management Measures." We revised and improved
the "Development and Design Personnel Salary Incentives" and "Piecework Personnel Salary Incentives" established
project-based R&D innovation awards with clear incentive standards for different products and implemented a talent
incentive model combining material and spiritual rewards to encourage continuous innovation. *Group Wins 10 MUSE Design Awards in 2024
We leverage agile development to enable products to quickly respond to market demand optimizing production process-
es and enhancing customer experience through rapid iteration and flexible adjustments. By focusing on user needs and
breaking traditional lengthy design/production cycles we achieve efficient delivery via modular digital and collaborative Case: 3D stacked digital sheet printing Case: Color lab
approaches. During the reporting period we developed 120 new product sets.In 2024 we overcame traditional machining and In 2024 the Group and AICELEY established a
mold limitations. Based on digital model files color laboratory. They integrated color data into
2024 Performance we launched a new 3D digital intelligent veneer design and production creating a color
By education level production process. Using digital printing management solutions system. This improved
technology it directly prints customized product quality and production efficiency. The
textures and colors onto the plate surface initiative aims to drive color management
Master Undergraduate Otehrs offering more design options for furniture and innovation in the home furnishing manufactur-
45people 972people 938people decorative panels. This technology isn't restrict- ing industry break color detection bottlenecks
R&D team employees ed by the substrate can create various wood - achieve accurate color visualization and ensure
1955 people By gender like effects with controllable costs. Moreover "what you see is what you get".digital printing has more stable quality and
lower supply - chain risks than traditional
Female Male veneer splicing and also reduces carbon
508 1447 emissions.people people
R&D employees proportion in the Group
9.50% By age
Under 30 years of age (not including 30 years of age)
505people
30-50 years old
(including 30 years old and excluding 50 years old)
Total developed new products 1421people
120
50 and over
29people
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Patents and intellectual property
We prioritize maintaining independent intellectual property rights in patents and original designs established the "Intellec-
tual Property Management Regulations" to standardize IP management set up a dedicated management organization
mitigate risks prevent intangible asset loss and foster employee innovation to enhance core competitiveness.Our intellectual property management follows the framework of "rights recognition - maintenance - protection - applica-
tion" establishing strict unified standards for ownership confidentiality data management and infringement risk control.We have defined rigorous business processes for the application maintenance protection and utilization of patents trade-
marks and copyrights. To encourage employee innovation and protect intangible technological inventions we implement
patent incentive policies that reward inventors based on criteria such as patent protection strength technical stability
potential value and implementation benefits.During the reporting period the Group applied for a total of 151 patents including 22 invention patents 39 utility model *"OPPEIN Factory Cloud" passed the test and verification of digital Guangzhou Innovation Laboratory
patents and 90 appearance patents. As at the end of the reporting period the Group and its holding subsidiaries had *The Group was awarded the honor of "Digital Traction Unit" for the digital transformation
obtained a total of 1089 patents of which 63 were valid invention patents 548 were utility model patents and 478 were of small and medium-sized enterprises in Guangzhou.appearance patents; and a total of 138 computer software copyrights. *"Key Technology and Application of Intelligent Flexible Production Line for Customized
2024 Performance Furniture" won the "Certificate of Appraisal of Scientific and Technological Achievements
in China's Forestry Machinery Industry".Accumulated Patents 1089 Some digital and intelligent transformation results:
Invention patents
22 Intelligent AS operations across all Digital transformation of raw Intelligent logistics and
categories material warehouses warehousing
Applied patents Utility model patents Valid Invention Utility Model Design
151 Leveraging digital technology we Based on optimizing raw material By integrating IoT RFID and upgrad-39 Patents Patents Patents63 548 478 drove R&D for intelligent automated warehouse entry/exit we digitally ing MCTS we enabled automatic and self-service scheduling across the transform raw material operations real-time logistics order push
Design patents base aiming for full - process automa- using informatization and automa- smart path guidance and AI-calcu-
90 tion in AS operations to cut costs tion to build an intelligent lated recommended storage in Accumulated Computer Software Copyrights boosted efficiency and improved warehouse management system. MCTS. This cut out manual shelf-re-
138 quality. By digitizing key rules we This improves warehouse efficien- lated tasks in warehouses stream-created software automation models cy connects information flows and lining order turnover and reducing
and system services to optimize automates inventory management logistics costs with the aim of
Digitalization and smart manufacturing processes and capture high - quality for paperless operations. We set up achieving fully digitalized logistics
We focus on intelligent manufacturing to solve industry data achieving partial process an automatic inventory warning management.automation fast scheduling and and upgrade material requisition
production and logistics problems using the TPS produc- reduced production energy consump- and truck scheduling enhancing
tion model and our self-developed information manage- tion. supply chain reliability and
ment system as the core. By leveraging innovative technolo- response to anomalies.gies such as the Internet big data AI and supply chain
Delivering cloud services
synergy we help terminals expand aiming to open up
design and digital production integrate information
systems across the business chain and achieve automated We enhanced the digital warehouse of the delivery system integrated the
and intelligent production. This drives industry digital trans- underlying data of business systems for centralized data management and sharing and achieved end - to - end order monitoring and anomaly pre -
formation reconstructs value chains innovates customiza- warning via data analytics. We developed an AI - powered intelligent order
tion models and promotes sustainable development. consultation & response platform with an updated knowledge base support-
During the reporting period automation innovations like *OPPEIN joined hands with Xinhua News Agency ed by human customer service to offer dealers a convenient way for real - time
offline automatic palletizing SCADA online systems and "Strong Nation Factory" to explore the Integrated order tracking and delivery policy inquiries.AGV support enhanced OPPEIN’s intelligent manufacturing Home Strategy and OPPEIN intellectual manufacturing
capabilities. *Delivery center Q&A robot
102511 126OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
The system sends the stocking task to the AGV the AGV cart picks up the
Case: OPPEIN AI digital intelligent factory AGV inbound goods at the lower line hands them over to the AGV forklift along the
preset route and transports them to the designated stocking information
indicated by the WMS system to complete the stocking.Automated workshop production Gantry automatic board pickup robot electronic saw automatic board pickup multiple cutting automatic convey-
or caching flexible gauge square accurate sealing
digitalized row of holes intelligent sorting automatic
packaging and so on.AGV forklift receives the instruction from MES system goes to the desig-
AGV outbound nated warehouse to pick up the goods and send them to the elevator to
complete the delivery out of the warehouse which can effectively shorten
the time consuming manual searching for goods reduce the risk of
mixing the goods and can realize 24-hour uninterrupted operation.Downline palletizing system
Original downline palletizing system instead of manual palletizing docking mixing algorithms AI
auto-generation to customize efficient and solid palletizing strategies.Sheet material Automatic warehousing automatic picking by stacker cranes automatic
three-dimensional board allocation by AI scheduling and automatic finished product
warehouse warehousing system.Relying on the automatic sorting and packaging line to realize the packaging control sequence.Case: "Sea Flamingo" whole-house intelligent terminal officially launched
Utilizing palletizing robots to automate precision gripping and placing of multi-size packages in OPPEIN's home furnishing technology brand "Sea Flamingo" whole-house intelligent terminal products was
mixed lines. officially listed in July focusing on whole-house intelligent light environment management serving OPPEIN
system stores.It based on OPPEIN integrated home model to adapt to innovation give customers a better
experience in order to form the differentiation advantage of the sea flamingo whole-house intelligent.The production terminal quickly builds a logistics infrastructure connecting the industry's automat-
ed production and logistics system.
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Compliance with ethical norms of science Closed-loop requirements:
efficiency + satisfaction
We prioritize ethical science and technology management focusing on ethical issues related to user information living
habits and preferences collected in artificial intelligence customer service and intelligent Internet of Things whole-house
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 Ethics in Science and Technology" (for Trial Manufacturing
technical support
Implementation). Complying with the" Cybersecurity Law" "Data Security Law" and "Personal Information Protection
Law" of the "People's Republic of China" we have established a comprehensive information security management system
and developed an adaptive closed-loop security protection system to comprehensively safeguard the security of network Create electronic flow of QA complaints
infrastructure and data assets. Process/Reply
We adhere to the "minimum necessary principle" clarifying user information rights and authorization mechanisms to
Support Center
prevent over-commercialization or non-consented data use while encrypting family-sensitive data. We enforce transparen- Process/Reply Request
cy in AI algorithms banning the generation of false misleading or discriminatory content. To avoid user over-reliance on Action center support
smart terminals that weakens home environment control we design "human-centered" interfaces retaining manual Request
control functions and embed an "interpretability" principle in technical design to help users understand system logic. support
Positive feedback Upgrade/Help 400 Phone
(online) (Online)
CUSTOMER RIGHTS AND BENEFITS
In place Overdue processing&
The Group strictly complies with laws such as the Civil Code of the People's Automatically unsatisfactory upgrade
Republic of China the Product Quality Law and the Law on the Protection of In place Automatically
Consumers' Rights and Interests to protect customer rights deliver quality
services and enhance brand reputation and customer service satisfaction. Upgrade to 400 customer service to handle or reply
Enhance Customer Satisfaction
Guided by the core concept of "fairness and brightness + the pursuit of
perfection" OPPEIN's brand culture centers on home and love committed
to delivering a high-quality "home and love" experience. We focus on
enhancing the efficiency quality and satisfaction in handling positive
customer feedback strictly tracking and evaluating indicators related to
product services and customer satisfaction to ensure customer voices are
transmitted "without attenuation" within the Group."2024 Service Model In Household Industry"
Customer service system
Adhering to "customer first service by heart" we reformed the after-sales system opened customer feedback channels
launched a category-wide customer support center app and streamlined feedback processes for the Group's 400 hotline
ISFS system and non-customized products. During the reporting period two customer satisfaction surveys covered over
1.56 million customers. Internal statistics showed positive consumer trends: basic service satisfaction scored 8.75/10 and
product quality reputation scored 8.30/10.
10310101131
Marketing internal
sales service group
Market after-sales manager
ConsumerOPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Customer feedback processing
Case: The Integrated Home Gold Butler Service We established management regulations such as "OPPEIN Home Group Customer Survey Management Regulations" to
standardize service complaints and crisis handling defining a four-step process: acceptance processing return visit and
For its 30th anniversary OPPEIN launched the "Integrated Home Gold Butler Service" gaining insight into user rectification with the customer service center ensuring effective implementation. We reinforced professional training for
needs innovating service models and upgrading service standards under the principle of "service as the sales and customer service teams conducting 66 trainings covering 1239 employees with an average of over 10 hours per
foundation reputation as the soul." Through eight comprehensive services it aims to solve consumer capita. Additionally we created the "Turning Complaints into Opportunities - Customer Experience Enhancement Manual"
problems and fulfill their needs. boosting complaint handling satisfaction by 6.8% year-on-year.
2024 Performance
Butler light home inspection Restored effect Conducted customer feedback-handling Covered employees
professional training 1239people
66times
Before designing and constructing we inspect OPPEIN self-developed CAXA design software Average training hours exceeded Year-on-year increase in complaint handling satisfaction rate
the whole house identify potential problems can realize the fastest 24-hour design drawings 10hours/person 6.8%
and ensure the program's successful imple- with elements full-dimensional shown.mentation. Customer feedback channels
Establishment of the Group's 400 hotline telephone number: 400-884-1868
Six-one installation standard Stewardship acceptance
Group website:www.oppein.com
E-mail: op@oppein.com
WeChat service number:OPPEIN Home Customer Service WeChat small program: OPPEIN Home Group
1 installation kit 1 red carpet-mulch 1 set of Setting 10 acceptance standards butler Postal mail:No. 366 Guanghua 3rd Road Jianggao Town Baiyun District Guangzhou City 510450 Group
uniforms 1 pair of shoe covers 1 sheet of accompanied by a full range of acceptance to Customer Service Center of OPPEIN Home Group Co.protective film 1 acceptance form. protect the delivery quality.(vi) Shopping malls are required to inform customers of the Group's service channels including but not limited
to the following: purchase contracts store plaques store service boards etc."Golden Nanny" conservation Drawings keep on record
Some customer service quality enhancement and improvement projects
Customer quality improvement
Regularly take exquisite care of Kitchen Drawings long-term archive invisible digital Issued the "Notice on the Closed-loop Control Process of Special Inspection
Cabinets kitchen appliances etc. leaving no safe at any time to access the file. on the Identification of Secondary Legacies on the Line" which focused on
stone unturned. accurately identifying secondary legacies and implementing hierarchical *Specialized training in customer
classification control to effectively prevent and control multiple legacies. complaint handling
Established a fast reformulation process. Through the online process
Extremely fast after-sales service Lifetime maintenance reformulation needs were quickly approved enabling same-day or
next-day order delivery to meet customers' rapid delivery requirements.Delivering AI customer service
Used a unified front-end consulting portal integrated AI customer service
Extremely fast online response and prompt A product warranty is provided to protect your functions and optimized its service capabilities. Set up an artificial custom-
in-home treatment. home. er service team standardized its service processes and standards enabled
seamless collaboration between intelligent and artificial customer service *"Turning Complaints into
and enhanced the overall quality and efficiency of customer service. Opportunities - A Handbook for
Enhancing the Customer Experience"
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Information security and privacy protection Emergency plan
We have formulated emergency plans like the "OPPEIN Home Furnishings Group Information Security Incident Emergency
We prioritize data and privacy security following the principle of "prevention first unified standards etc." We establish an Management Standards" and established an information security emergency response organization to address incidents
internal information security management system with clear structures and protocols backed by a security team and promptly. In case of security incidents we immediately take remedial actions and follow up to minimize losses and
security investments. Upholding DevSecOps and regulatory compliance we standardize data security to deliver secure impacts. Additionally we conduct vulnerability management per the "Information Security Vulnerability Management
products/services ensure business continuity and protect information security. We also conduct regular security educa- Specification" defining a lifecycle-based process tailored to the Group’s needs and performing penetration testing via
tion and training to cultivate a security - conscious culture among employees. simulated malicious attacks to assess network system security.During the reporting period the Group did not experience any information leakage incident and its relevant business APPs Headquarters Emergency Response Leadership Group
have not been publicly notified or taken down by national regulatory bodies.Information security management system
Group Information Management Base Emergency Response Headquarters Emergency Headquarters Emergency Headquarters Emergency
As the Group embraces intelligence and digiti- Committee/Information Security Information security
operations manager Leadership Group Response Execution Team Response Coordination Team Response Support Team
zation we increasingly prioritize network Management Committee
information security. To strengthen protection Security administrator
of key data and information assets we have Data manager Base Emergency Base Emergency Base Emergency
developed regulations like the "Oppein Home Information Security System administrator Response Response Response Governance Working Group
Group Information Security Management Network administrator Execution Team Coordination Team Support Team
Regulations" and "Data Security Management Software development
Specifications" complying with laws such as engineer *Information security emergency response organizational structure
the Personal Information Protection Law and Desktop maintenance
Group Information engineer
Cybersecurity Law. These establish and main- Management Department Partner regulation
tain data security policies and standards
forming the Oppein Information Security We prioritize privacy and trade secret management with partners including confidentiality clauses in procurement and
Management System. During the reporting cooperation agreements to require strict compliance with confidentiality commitments and protect product secrets and
period we implemented a public cloud securi- user privacy. We also integrate core stakeholders’ information security and privacy protection policies into our overall risk Security management Policies & Standards
ty project to ensure stable operation of management plan making them key focuses in internal and external security audits and conduct annual special reviews
information systems and introduced new to ensure effective control over information and privacy security.norms including the "Public Cloud Manage- Risk and Sustainability Management Safe operation
ment Specifications" and "Terminal Marketing 2024 Performance Information security training
System Material Maintenance Management *Information security management organization structure
Specifications". Carried out safety awareness promotion All employees must complete information security
2 training upon hiring and we regularly conduct annual Data compliance management times training and awareness campaigns via centralized
We have established a robust data compliance management system with regular communication mechanisms clarifying on-site sessions emails "E Orange Academy" online
accountability for data compliance and making adherence to regulatory requirements a condition of employment. For key Conducted cybersecurity training learning and office desktop pushes. Content includes
data-processing positions we conduct background checks and require signed compliance undertakings and confidentiali- national regulations network security awareness email
ty agreements to define obligations ensuring comprehensive compliance in data utilization and safeguarding the Group's 1time security software download safety virus protection
data security. and telecom fraud prevention targeting all in-service
Covered employees and new employees with additional specialized
Privacy protection
We strictly regulate user privacy policies and personal information collection/use in our APPs (e.g. OPPIE Smart Home Sea 9724person times training for information security personnel. During the
Martyrs) and mini-programs conducting regular privacy impact assessments and compliance testing while promptly reporting period the Group held 2 security awareness
rectifying issues. We respect users’ rights to know choose and control their personal information detailing policies for Cybersecurity quiz covered employees campaigns and 1 cybersecurity training reaching over
acquisition management and protection in our digital platforms and seeking consent before collection/use. Additionally 1564 9724 person-times and conducted quizzes for 1564 people
we employ strict data access controls multi-factor authentication data anonymization and encrypted transmission to employees issuing warnings for potential risks to
ensure comprehensive protection of personal information. enhance their cybersecurity awareness and skills.
134135
Other functional departmentsEMPLOYEES AND SOCIETY
06 OPPEIN insists on "Cultivating love for family and society from small to large from individual love to great love". We internally emphasize that "talent is the first resource for enterprise development" prioritize the respect and protection of every employee's rights and interests. We strive to create a safe and healthy working
environment and stimulate potential of employees. We offer diverse activities to
employees to enhance their sense of fulfillment happiness security and satisfac-
tion. Externally we focus on fulfilling our corporate social responsibility increasing
support for rural revitalization poverty alleviation education for children with
disabilities and public welfare education at red basesand constantly strengthening
the public's high recognition of OPPEIN "home-loving culture" brand awareness
and sense of social responsibility so that we can embrace and give back to the
society.OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
EMPLOYEE RESPONSIBILITY Compliant employment
The Group resolutely prohibits the employment of child labor establishes a
OPPEIN comprehensively protect employees' legitimate rights and personnel system control module to automatically warn candidates who
interests building a fair just and transparent career development have not reached the legal age and requires the original ID card to be
platform. We continuously improve our compensation benefits submitted again for age review during the recruitment and employment
and performance evaluation systems implement employee stock process. If there is any inconsistency the investigation process will be imme-
ownership plans and enhance welfare protections to deliver a diately initiated to verify the actual age and employees under the age of 18
satisfying work-life experience for our workforce. OPPEIN provides will be resolutely cancelled; A clear qualification level standard structure will
diverse training programs to support career advancement robust be established to clarify the qualification standards for various job catego- *The personnel system control module
occupational health and safety management systems optimized ries types of jobs and positions. Labor contracts will be signed with automatically warns candidates who have
worker representative conferences and staff forums and multiple employees in a timely manner to clarify the rights and obligations of both not reached the legal age
channels for employees to contribute ideas and suggestions. parties and ensure compliance with employment regulations. During the reporting period the Group formulated the
Through these efforts we foster mutual growth for both the compa- "OPPEIN Home Group External Shared Employment Management Regulations" to improve the legal definition of shared
ny and our employees. *Guangdong May 1st Labor Award employment and clarify the roles and responsibilities of participating entities.During the reporting period 0 child laborers and 0 forced laborers were found in the Group and no strikes/work stoppages
Compliant employment and equal opportunities occurred; the signing rate of employee labor contracts was 100%.
2024 Performance
We respect strict compliance with the "Labor Law of the People's Republic of China" the "Labor Contract Law of the
People's Republic of China" the "Employment Promotion Law of the People's Republic of China" the "Provisions on Child laborers Forced laborers Signing rate of employee
Employment Services and Employment Management" and other laws and regulations of the places where we operate. We discovered: discovered labor contracts
formulated the "Employee Recruitment and Employment Management Regulations of OPPEIN Home Group Inc." the 0 0 100%
"Onboarding and Labor Contract Management Regulations of OPPEIN Home Group Inc." and "Recruitment and Employ-
ment Management Standards for Fresh Graduates of OPPEIN Home Group Inc." "Recruitment and Employment Manage-
ment Regulations" "Employees' Overtime Wage Accounting Management Regulations of OPPEIN Home Group Inc." and Basic conditions Educational background work experience
other systems. We respect human rights and uphold justice，and resolutely prohibit the employment of child labor. WeSpecialized
uphold equal treatment by providing fair opportunities to all employees throughout recruitment and employment General knowledge theoretical knowledge industry knowledge knowledge
processes. During the reporting period the Group was honored with the titles of "2024 Guangdong Extraordinary Employ-
er" and "Model Enterprise for Veterans Employment" . Specialized skill Professional competence professional achievements
Standardized academic achievements
structure of Skill level
qualification levels
Management skill Work project/task management team building and management
Performance results Performance appraisal results
Professionalism Communication coordination / Organization planning /
Problem solving / Innovation / Stress resistance
Interpersonal / Resilience / Boldness / Responsibility /
Analytical judgment
*2024 Guangdong Extraordinary Employer of the Year *Model Enterprise for Veterans Employmen *Standardized structure of qualifications
138 139OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Full-time junior
2024 Performance Equal employment 92.26% employee
80.31% Graduate students 18989 18989
Total employees We abide by the employment philosophy of "merit-based 16530 and above Full-time middle
20582 appointment full utilization of talents fair competition and 129 management
mobility both upward and downward" and provide equal Undergraduate employee
opportunities to all candidates and employees regardless of 19.06% 3923 1529
Ethnic minority Veterans Newly recruited 7.43%gender race marital statusinjury health or family status. 0.63% 3923 0.31%
employees employees employees 129 College and below
1529 Full-time senior
As of the end of the reporting period the Group had a total of 16530 6 management
1085 214 3265 20582 employees including 1085 ethnic minority employees employeeBy education attainment By position 64
and 214 veteran employees 3265 new employees were recruit-
ed during the reporting period. *Employee attrition
68.21% 70.04% Under 30
14040 Male 14415 Under 30 60.33%
140405701
31.79% 27.70% Female 30-50 years old (not included)
6542 Female 30-50 years old (not included)5701 37.71% 37.61%6542 14415
2.26%
466 50 and over Male 50 and over (excluding 466 47.29% employees of appropriate
retirement age)
By gender By age By gender By age 10.94%
*Employee attrition *Employee turnover rate attrition
140 1417.1.2.Employee compensation and performance
Developing Process
We formulated fair and just salary system such as "Salary Management Regulations of performance monitoring and
OPPEIN Home Group Inc." "General Management Regulations on Incentives and Accounting plans counseling
for Employees of OPPEIN Home Group Inc." created a competitive salary system for all
employees. The Group has launched an employee stock ownership plan to improve the Evaluation Assessment committee period
interest sharing mechanism between employees and shareholders. We continued to improve Assessment
methods Assessment
the employee rights protection system upgraded the employee welfare system established type
a trade union committee and sound labor contracts social insurance salary distribution Performance
parental leave employee physical examinations work-related injury management and other Results utilization and improvement appraisal and
rules and regulations to effectively protect the legal rights and interests of employees feedback
OPPEIN also carried out employee care activities and enhance employees' work happiness
and sense of belonging.Performance incentives Performance Support & Support & Performance
attainment anomalies Improve- Improve- attainment anomalies
OPPEIN formulated "Performance Management Regulations of OPPEIN Home Group Inc." and ment ment
"Incentive Mechanism Construction Management Regulations of OPPEIN Home Group Inc." to
establish a performance management incentive mechanism that is scientific comprehensive
2. Analyze the feasibility and 3. In-depth analysis
objective fair efficient practical and precise in evaluation consisting of three major compo- 1. Identifying estimated value of improve - of the causes of 1. Develop a
problems anomalous performance audit 2. Conduct audits nents including the "Performance Management System" the "Performance Internal Audit ments and identify performance problems as planned
System" and the "Performance Improvement System". It closely connects organizational and improvement topics plan
personal performance goals maximizes the activation of organizational effectiveness and
personal effectiveness and ensures the realization of organizational strategic goals while Underperformance
improving the personal performance of employees. The performance management system
mainly consists of 5 parts which includes "appraisal type appraisal cycle appraisal method 6. Performance 5. Performance 4. Identify and 4.Rectification and 3. Issuance of
appraisal team and performance process" and the appraisal results shall be used for the improvement improvement implement correction to form a experience deposition results tracking performance improve -accounting of performance incentive. If the appraisee has any objection to the appraisal closed loop
audit results
and dissemination ment programs
results he/she can initiate objection feedback to his/her superior within 3 working days upon
receipt of the appraisal results. As of the end of the reporting period the system has covered
all employees. With different emphasis the appraisal varies for personnel at different levels
mainly categorized into senior middle and junior levels. During the reporting period the *Performance Manag ement System
performance appraisal and incentive bonus scheme covers 100% of employees in the Group.
2024 Performance
Performance management system coverage Employee stock ownership plan
100% In order to enhance the cohesion of employees and promote the long-term and sustainable healthy development of the
company the Group implements equity incentive plans for key employees middle-level managers senior managers
Focus of performance appraisal
directors and other employees who have made outstanding contributions to the company's performance or have a signifi-
The assessment focuses on 4 major aspects: finance (Group strategy decom- cant impact on the company's future performance in accordance with the China Securities Regulatory Commission's
Senior level position annual business planning) customers (internal and external custom- "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies" and "Shanghai
er service enhancement needs) internal operations and learning & growth.Stock Exchange Listed Company Self-Discipline Supervision Guide No. 1-Standardized Operations". In 2022 the Group
formulated and launched the "OPPEIN Home Group Inc. First Phase Excellent Employee Stock Ownership Plan" with a
The assessment focuses on 3 major aspects：the decomposition of business
Middle level planning for business divisions/bases the planning of departmental key work total of 230 incentive targets a total of approximately 578500 shares granted and a transaction amount of approximately
and the fulfillment of core functions. RMB 68.2559 million. During the reporting period based on the confidence in the Group's future sustainable development
and the current stock price of the company the Group's Board of Directors agreed to extend the company's first phase of
the Excellent Employee Stock Ownership Plan to March 22 2026 to maximize the interests of holders and the company and
Junior level The assessment focuses on 3 major aspects: core job duties work priorities for
the time period assessment deficiencies and key improvement directions. promote the company's long-term development.
142124
Performance internal
audit system
Audit trail or results
UnderperformanceOPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Employee benefits
OPPEIN places paramount importance on humanistic care for its employees.Social insurance coverage Through the establishment of the＂OPPEIN Home Group Employee Welfare Subsi-
100% dy Management Regulations＂ the Group has constructed a 360° comprehensive care system fostering a collaborative mechanism of shared creation shared
benefits mutual success and collective prosperity. This system continuously
provides employees with a wide range of welfare benefits. Additionally by formu-
Investment in employee lating the＂OPPEIN Home Group Employee Visitation Support and Donation
welfare construction Assistance Management Standards＂ the Group prioritizes the well-being of
frontline employees female staff retirees and employees facing difficulties *Infirmary *Nursing room
approximately consistently refining assistance mechanisms to enhance workplace happiness
RMB95million and sense of belonging.During the reporting period the Group achieved 100% social insurance coverage
for all employees and invested approximately 95 million yuan in employee
welfare programs.Employee welfare system
OPPEIN complies with national regulations by providing statutory benefits such as social insurance housing fund and
legal holidays. The Group also offers 16 supplementary welfare programs (e.g. festival/birthday benefits training subsi-
dies health checkups).In leave management the Group adheres to national working hour standards and paid annual leave policies respecting *Banks *Library
statutory holidays like International Women's Day. A comprehensive leave system with 16 categories (e.g. personal/sick
leave parental leave) includes family visitation leave and fully paid special leave. Regarding working hours OPPEIN Enhancing Employee Improving the Employee
operates a 7.25-hour daily work schedule (8:30 AM - 5:15 PM) and implements a flexible scheduling policy during winter Birthday Benefits Physical and Medical Experience Care for employees 绩
months and every Friday allowing employees to leave 15 minutes early (5:00 PM). This results in an average weekly 效
working time below the 40-hour statutory standard effectively balancing professional and personal commitments while The standard of per capita Successfully introduced the The Wuhan base is equipped wit内h
enhancing employee satisfaction and organizational loyalty. benefits has been raised with medical institution of Jiang-审
sufficient heat-prevention an
gao Health Center to provide 稽
d
more diversified gift choices cooling materials for the front-lin核体e
Supplementary Employee Benefits personalized hand-drawn employees with more compre- employees who are subjected t系o
greeting cards convenient hensive and accurate physical the "baking test" of the hot
Cultural and recreational facilities: gymnasium basketball court table tennis room library badminton court billiard examination services and
room soccer field collection process and consid-
Supporting living space: mother and baby room bank convenience store medical office (including outpatient erate redemption reminder professional report interpreta-Service clinic Chinese medicine physiotherapy room (new) psychological counseling room (new) providing acupuncture tion and follow-up value-add-
moxibustion tuina and other services) additional electric car shed services. ed services; the medical office
Life support software: carpooling platform (to meet the needs of employees for daily commuting holiday travel
and other group carpooling)
*Optimization and upgrading of OPPEIN's 2024 welfare system
Improvement of New dormitory curtains and hoods; replacement of dormitory doors iron frame beds cold and warm inverter air condition-
facilities ers constant temperature water heaters anti-mosquito curtains; renovation of the basketball court; renovation and
168
remodeling of the cafeteria
Case: Talent residences
Talent apartment Installation of additional welfare and couples' rooms car charging piles and express lockers
Provide Golden Nanny dormitory cleaning service Sunflower office cleaning service The OPPEIN Talent Residences north of the Guangzhou
Launch of fresh food group purchasing service Baiyun headquarters cover 2600 sqm with a 61989 sqm
Employee Services
Additional staff lounge GFA. Comprising four buildings with 526 furnished apart-
Provision of free dormitory services and pest control in dormitories ments the complex offers premium amenities including a
central garden parking fitness center and a convenience
Festivals (e.g. Lantern Festival Women's Day) store. These facilities ensure comfort and reflect OPPEIN’s
Employee Activities Specialized thematic activities (e.g. Good Life Bazaar food safety food festivals staff talks and interactions) commitment to employee well-being through quality
Summer Parent-Child Programs (DIY Baking Backyard Kitchen Tour) housing.
123 143OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Employee care initiatives
Case: Employee carnival for the Group's 30th anniversary
Employees received OPPEIN actively implements diverse cultural and recreational programs to
enrich employees' lives including innovative activities such as New Year red
assistance envelope distributions corporate merchandise design competitions
45 In October 2024 the Group connected its five major smart workshop fun events and parent-child educational outings all designed to manufacturing bases nationwide across time and space
enhance employees' sense of well-being and belonging. Concurrently the
Care visits to ill employees successfully planning and implementing cultural and sports Group has established a comprehensive and targeted support system for activities like the 30th Anniversary Employee Carnival to
and bereaved executives employees in need organizing regular visits to convey corporate care initiating enrich employees' leisure time and enhance team cohesion
9 donation campaigns to pool collective goodwill and facilitating access to and belonging. Notably the chairman personally attended the
special assistance from the Municipal Employee Development Foundation for Carnival interacting cordially with employees to provide great
severely disadvantaged staff.Cultural care activities encouragement and strength.During the reporting period the program assisted 45 employees facing
conducted hardships provided visits to 9 individuals (including those battling illnesses
43 and bereaved executives) and conducted 43 cultural and recreational care
activities demonstrating OPPEIN’s holistic commitment to workforce welfare.Case: Caring for female employees
We are well aware of the unique value and contribution of female employees
in the workplace and actively advocate gender equality and a workplace
environment that respects multiculturalism. In March 2024 the group's labor
union offered holiday greetings to all female employees on Women's Day *Wuxi Base: Blessings at Dragon *Guangzhou Headquarters:
and launched free "nail art services" and "plaster doll coloring DIY" activities. *Tianjin Base: Tug-of-war Boat Festival Badminton Tournament
Case: Children's Day- fun and companionship
To promote the "family culture" the group's labor union launched
Fengxing Dairy Town parent-child activities and the Excellent Educa-
tion Parent-child Special in June 2024 for Children's Day. 23 employee
families (82 people) joined the Fengxing Dairy Town study tour while
the Special offered parent-child DIY robot interaction and lectures. *Chengdu Base: A trip to the World *Qingyuan Base: Billiards Warm Winter Gluttony Horticultural Exposition Challenge Festival
Transforming industrial resources into family welfare these activities
boosted parent-child bonding via immersive learning and enhanced
employees' family belonging and work-life balance.
144 145OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Supplier cycle
management
Training and career development Building the talent supply chain
We prioritize talent retention/attraction through "pipeline development internal empowerment and market-oriented
expansion" leveraging digital/intelligent transformation. This builds a collaborative talent ecosystem integrating Organizational strategy/Corporate culture/Business development/Employee career development
internal/external resources. We support employees in internal/external learning and professional certifications for holistic
Enabling organizational Enabling sectoral
growth. Strengthening internal training we offer tailored programs and personalized development plans. These empower Skills tactical team Skills experts pool Leadership program operations operations
employees create advancement opportunities and establish a merit-based mechanism ("competent rise underperform- (Director level and above)
ing improve"). This ensures a high-caliber high-performance team for sustained excellence. Soaring program
(Manager level)
Talent training Booster program (Supervisor level)
We always regard talent development as the core driving force for the sustainable development of the company establish Shell breaking program
a sound and complete internal employee full-career cycle training system focus on the optimization of key position (Staff level)
capability models through a hierarchical and classified precise training mechanism achieve dynamic matching of talent Classification of Training of skilled
skills and business needs and help employees and companies grow together. skilled manufacturing non-manufacturing College student personnel personnel training camp HP talent camp
In terms of the internal training system the Group is guided by business needs and establishes a hierarchical and classified
precise training mechanism. Through the "E-Orange Academy" online learning platform employees' learning needs are Skilled talent empowerment Echelon talent empowerment Specialized operations empowerment
met; for new employees college students and key positions such as R&D and design the training of Integrated Home
Strategy is strengthened; through the reconstruction of the Mini-EMBA course for executives a team of managers with Internal cross-cutting learning
industry vision is cultivated. At the same time we regularly organize challenging team projects and enhance employees'
Group-level instructor system professionalized course system ?R
cross-departmental collaboration and cohesion through practices such as outdoor development. Online learning platform offline learning platform training evaluation system point system
In external collaborative education the Group feeds industrial experience into vocational education leading terminal
empowerment projects like "full-case design transaction" and "anchor incubation" to cover dealer systems. It develops QCC workflow improvement management case competition action learning online and offline blended learning private board meeting executive face-to-face job shadowing benchmarking visits team development paid learning horse-racing task-driven learning barrier learning. ...courses/evaluation systems such as "Approaching OPPEIN" and skill certification completing self-evaluation qualification
applications for roles like Interior Decoration Designer. Selected as a Guangdong "Industry-Education-Evaluation" leader
unit and Guangzhou's model project the Group led the development of "Mechanical Carpenter" digital portraits in the *Talent Development and Cultivation System
National Vocational Digital Exhibition Hall becoming a national skill display unit.During the reporting period the Group's employee training time was 685787 hours of which offline training time was
75339 hours and online training time was 610448 hours with an average training time of 33.31 hours per person. The Talent training to improve focus
Group invested RMB7.137 million in vocational training. Talent Team Implement targeted talent reserves and training establish a key talent pool form a competitive
2024 Performance: Optimization mechanism of "capable people go up mediocre people go down" and build a high-quality team.
Efficient Training Adopt a mixed experiential and training-combat training method to accurately improve business
Model capabilities and the ability to solve practical problems.Total training time Offline training time Online training time
685787 75339 610448 Integration of Policies According to national policies and company strategies combined with business needs strengthen hours hours hours and Demands organizational and personal performance and promote the training of skilled talents.
Personalized Based on annual demand surveys provide training programs that meet personalized growth.Average training time Investment in vocational Training
per person training
33.31 713.7 Technology Platform Simplify learning pathways and increase efficiency through multi-platform integration such as hours RMB million Integration E-Orange Academy.
146147
Financial system specialized
Six sigma specialized program
Cloud operation program
IP star program
Incubation of webcam anchors
Eagle Scheme training camps
Specialized training in
crafts talents
Specialized training in
quality talents
Classification of
technicians
Classification of
techniciansOPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Case: Full-case design and transaction breakthrough camp
In May 2024 the first design practice class of Full-case
Breakthrough Camp 2.0 launched at OPPEIN South
China’s Qingyuan base. The training covered "online
preview offline intensive training and PK drills" with
E-Orange Online Learning Platform & E-Orange Academy over 50 hours of cumulative learning producing 270
practical assignments and 52 design reports. After six
days of full-process closed training 54 designers from 28
malls nationwide completed their tasks and graduated.Case: Approaching the OPPEIN-A Study Tour and Learning Program
New Feather Program - Specialized Training for Fresh
Eagle Program-Group Talent Echelon Training Camp College Students A look at the top featured sites - intuitive feelingimmersive
The "Approaching OPPEIN Study Tour experience
Project" follows the principle of "attracting Enter the world's top customized home furnishings full-catego-
people through acquaintance" and focus- ry exhibition hall & fully automatic flexible production site
es on "management manufacturing
A study tour of unity of knowledge and action - learning while
marketing and R&D" opening to all walks traveling knowledge and action go hand in hand
of life via "latest practices executive
On-site visit + single-theme course sharing + in-depth
insights first-hand experience and interaction
in-depth interaction". Since launch it has
Rainbow Program - Supply Chain Training Camp for Red Leaf Program - Specialized Training Camp for R&D Multiple wisdom exploration journey - in-depth experience
E-commerce Talents Talents hosted 20+ events welcomed 400 manag- multiple learning
ers from 200 companies with a 9.66 On-site visit + series of themes/multiple themes course sharing
satisfaction rating. In 2024 the project will + in-depth interaction
upgrade with four major models adding
diverse ways to understand OPPEIN and Wisdom navigator sharing session - wisdom sharing leading the way forward
meet learning needs.OPPEIN lecturers go to upstream and downstream cooperative
enterprises to give themed lectures
School-Enterprise Cooperation Program-New Appren-
New Employee Orientation ticeship Training
Mini-EMBA Middle and Senior Management Develop-
Team melting-Outdoor development training ment Program
148 149OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Career development 2024 Performance Occupational health and safety
The Group has formulated the "OPPEIN Talent Development Management Regula-
Employees regularly tions" and "OPPEIN Employee' Career Development and Qualification Management
We attach great importance to the occupational health and safety of
Total EHS training time
Standards" in combination with the characteristics of the home furnishing industry employees and are committed to providing healthy and safe working
received performance and established a talent pool with management and skilled personnel as the core. It 175996 hours conditions for them and continuously improving the occupational health
and career development plans trains and uses talents from a systematic perspective accelerates the empower- and safety management system. We implement" Production Safety Law of
assessments rate ment of high-potential and high-performance talents and promotes the implementa- the People's Republic of China" "Law of the People's Republic of China on EHS training coverage
100% tion of the talent elite strategy. At the same time we actively carry out the 2024 qualifi- the Prevention and Control of Occupational Diseases" "Regulations on
cation level assessment work to stimulate the vitality of internal talents accelerate the 100% Safety Training for Production and Business Units" and "Fire Protection
iterative growth of internal talents and provide solid talent guarantees for the realiza- Law of the People's Republic of China" etc. to formulate the "Occupational
tion of the company's vision and strategic goals. During the reporting period 100% of Health Management Regulations of OPPEIN Home Group Inc." "Eight
the Group's employees regularly received performance and career development Total EHS training Prohibitions on Environmental Safety and Health (EHS) of OPPEIN Home
assessments. participants Group Inc." "EHS (Environmental Safety and Health) Assessment and
114240 Incentive Management Regulations of OPPEIN Home Group Inc." "EHS
Channel building Standard rating Qualification assessment Results application Meeting and EHS Inspection Management Regulations of OPPEIN Home
Group Inc." and other systems. Resolutely implement the production
safety policy of "safety first prevention first comprehensive manage-
Dual career development Through the qualification Through the new arrival grad - The results of the qualifica ment" continuously implement the responsibility of production safety
paths for employees: man - standards to clarify the quali - ing and annual evaluation we tion level assessment will be and make every effort to create a favorable environment for production
agement channel technical ty knowledge skil ls and analyze the competency level applied to the work of salarychannel（ different channels performance requirements of employees and indicate the i n c e n t i v e s s e l e c t i o n & safety.can be switched） p u l l i n g e m p l o y e e s t o direction and target of compe - appointment training man During the reporting period OPPEIN conducted 175996 hours of EHS
improve professional ability. t e n c y e n h a n c e m e n t a n d agement etc.improvement. training covering 114240 participants (100% coverage) with zero
*OPPEIN talent promotion channel
Technical channel Talent development Management channel
Chief engineer/specialists
More care less hurt
Director-level Category E
engineers/experts
Manager-level Category D/E
engineers/specialists talent pool Category D
Chief engineer
Category C talent pool Category C
Engineer
Internal technical experts
Skilled labor
Workshop technical
key personnel Basic talent pool
Category A/B
General Labor new employees
*Awarded Third Prize in the Team Category at the 2024 Munici- *Awarded Outstanding Organization Award at the 2024 Baiyun
*Oppein talent promotion channel pal-Level Minimum Emergency Unit Competition District Emergency Response Unit Competition
150 151OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Safety production mechanisms 2024 Performance Aligning with the safety production characteristics of the
Guided By The Vision To "Lead In Home Furnishing Industry EHS Performance And Build An Exemplary Safety Culture" OPPEIN furniture manufacturing industry we have established a dual
Established A Continuously Improving Safety Framework By Formulating Core Policies Including Production Safety Responsibility System prevention mechanism by leveraging two core methodologies:
Safety Culture Manual And Work Stoppage Criteria. The Group Launched A Unified EHS Standardization Project Across All Operations Rectification rate for risk tiered control and hidden hazard identification. In compli-
Enforced Through Signed Safety Commitment Letters Defining Accountability At All Levels Aligning With The Triple Zero Goal: Zero identified hazards
100% ance with the OPPEIN Home Group Hazard Identification and Casualties Zero Environmental Pollution And Zero Occupational Hazards. Risk Tiered Control Regulations we implement systematic risk
management—starting with risk identification and utilizing risk
Safety Commitment control measures to mitigate risks before they evolve into
Lost Time Injury Frequency hazards. Simultaneously guided by the OPPEIN Home Group
Three Guiding Philosophies (LTIF) per million work Hidden Hazard Investigation and Resolution Regulations we
hours decreased conduct tiered hazard remediation continuously monitoring
Five Cardinal Safety Protocols 33.21% operational processes to identify potential control gaps and
EHS Best Practices eliminate risks at their nascent stage thereby preventing safety
16 Core Governance Modules incidents.
During the reporting period the Group achieved a 100% rectifi-
EHS Management System
& Operational Standards cation rate for identified hazards while the Lost Time Injury
*Safety Culture *Safety Responsibility Commitment Frequency (LTIF) per million work hours decreased by 33.21%
year-on-year.Risk Identification Risk Classification Risk Control Hidden Hazard Hidden Hazard Hidden Hazard
Screening Grading Management Emergency Disposal Accident Investigation Continuous Improvement
Hazard Accidents
Sources Hidden Hazards
Defense failure Defense failure
First line of defense Second line of defense
Risk Red: inadmissible significant risk must stop Orange: Highly hazardous greater risk must Yellow: significant danger general risk Blue: slightly hazardous low risk requires
Level operations immediately immediate rectification develop measures to control management need to control rectification attention or negligible acceptable
*Dual prevention work mechanism for safety risk classification and hidden accident detection and management
152153
Accident detection
management and prevention
Security risk classification and control2024 Performance "Hidden Hazard" reporting process 2024 Performance Occupational health management
To strengthen safety management the Group has developed the
"Hidden Hazard" Reporting Employee physical examination We benchmarked the ISO45001 occupational health and safety manage-
"Hidden Hazard" reporting process in compliance with the "OPPEIN
Process coverage coverage rate ment standard and formulated the "Regulations on Operation Manage-Hidden Hazard Investigation and Resolution Regulations". We formulat-
5 ment in Flammable and Explosive Sites" "Regulations on Fire Operation bases ed the "Operational Guidelines for Hazard Reporting Procedures" 100% Management" "Regulations on Confined Space Operation Management"
and more than 30 factories. regularly circulate hazard reporting data across manufacturing facilities Occupational disease hazard "Regulations on Height Operation Management" and "Regulations on to ensure timely identification and reporting and enhance procedural Labor Protection Products Management". We continuously improve the
efficiency and accuracy. This enables closed-loop tracking of hazards factor detection rate
Monthly average reported occupational health supervision mechanism through regular physical rectification rate evaluation and tiered classification.hazards exceed 100% examinations technical transformation and the addition of labor protec-During the reporting period the Group successfully implemented this tion products. We establish employee occupational health monitoring
1000 pieces process across 5 production bases and over 30 factories averaging over Special operations personnel files and organize employees to undergo a comprehensive physical exam-
1000 reported cases monthly. certification rate ination every year to timely understand the health status of employees
100% and prevent the accumulation of various occupational injuries. At the
same time we entrust evaluation and testing agencies to conduct
Hidden hazard Hidden hazard Hidden hazard Hidden hazard occupational hazard factor testing in the workplace every year. If any
management assessmentt rectificationt acceptance
workplace is found to be inconsistent with national standards and indus-
try standards during the evaluation process we will immediately take
Hidden hazard level Rectification measures Rectification measures measures to rectify and manage it eliminate occupational disease hazard
confirmation factors in the workplace ensure that the workplace meets occupational
Self- Special
inspection Hidden hazard type Rectification planinspection Rectification deadline health requirements and allow employees to work more safely healthily
confirmation and comfortably.Hidden hazard Hidden hazard
deadline rectifier As of the end of the reporting period the pilot factory of the furniture and
*he canteen of the kitchen cabinets category of the OPPEIN Qingyuan base has passed the *Occupational Health
Responsible person Guangzhou regional and Safety Management ISO45001 certification. During the reporting period the employee physi-
for rectification headquarters in the System Certification
south area was awarded cal examination coverage rate was 100%; the detection rate of occupa-
the A- level canteen rating tional disease hazard factors was 100%; and the certification rate of
All employees Inspectors Hidden hazard assessment Hidden hazard level Hidden hazard deadline special operations personnel was 100%.*"Hidden Hazard" Reporting Process Case: Caring for health and benefiting the people with fine medicine
OPPEIN Clinic Guangdong's first corporate-backed "1-Yuan Healthcare" initiative provides convenient medi-
Case in point: Identifying potential environmental hazards cal services to employees. Staff pay only 1 yuan (plus insurance) for consultations and prescriptions. The
program offers 167 essential medications for common workplace illnesses balancing health management
with productivity while enhancing workplace well-being.In October 2024 the Group conducted a comprehensive investiga-
tion of potential environmental hazards in the enterprise covering
multiple key dimensions including the preparation and review of
risk assessment reports for sudden environmental incidents the
formulation of emergency plans for sudden environmental
incidents and the improvement of hidden danger investigation
and management systems etc. to identify and eliminate potential
environmental risks and lay a solid foundation for achieving
sustainable development.
154 155OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Handling of work-related accidents
President's Accident Group EHS Supervision Group Human Resources Labor Security
Office / General Occurrence Management and Audit Center / Base Personnel Department
For the handling of work-related accidents we comply with relevant laws and Manager's Office Department Department Department Department
Work-related accident regulations such as the＂ Work Safety Law of the People's Republic of China＂ and the
rate decreased ＂Regulations on Reporting Investigation and Handling of Production Safety
32% Accidents＂. Based on these requirements we have established the＂ Regulations on Safety Incident Reporting and Management＂ to standardize procedures for report-
ing investigating analyzing determining and documenting production safety Safety Accident Occurred
accidents. Additionally we formulated the ＂Guidelines for On-Site Work Injury
Management Implementation＂ requiring all bases and factories to develop emer-
gency response plans tailored to their specific conditions. These plans must include
organized training and drills to ensure employees are proficient in emergency
protocols. In the event of an accident the emergency response plan must be Report to Department On-site
activated immediately to minimize losses. Supervisor EHS Emergency
Regarding accident investigation the Group’s EHS Management Department will form an investigation team based on the DepartmentHospital AssistanceTreatment (Work Injury)
accident type with all departments obligated to support and cooperate. The team must complete the investigation within
7 business days of the accident occurrence conduct root cause analysis implement corrective and preventive measures
and submit an accident investigation report for approval by compliance approvers to finalize the case.During the reporting period the Group achieved a 32% reduction in work-related accident incidence surpassing the
challenging target of over 30% reduction for two consecutive years. Fill out the "Safety Accident Record and Verify Pre-declaration
Declaration Form" (Work Injury) Employee Related of Work Injury
Promotion of safety education within 24 hours Information
To ensure that employees understand workplace safety knowledge master safe operation skills and effectively prevent
safety incidents the we have established the ＂OPPEIN Safety Education and Training Management Regulations＂. This Record
framework builds a comprehensive safety education and training system incorporates emergency drills and continuously
promotes safety education through various methods including classroom lectures safety forums team discussions
hands-on drills video demonstrations online courses and study of safety manuals.Record
Cooperate Joint Investigation
Submit Investigation Form
Approval
2024 Performance Safety culture training
Employee safety culture All employees are required to complete safety-related training courses upon Cooperate Cooperate Prepare Materials
training participation onboarding and receive periodic cybersecurity awareness training during their
100% employment. Safety training is conducted through the Group’s E-Orange Acade-rate my covering topics such as National Cybersecurity Awareness Week Alert on Conduct Work Injury Identification and
Training Satisfaction rate Cybersecurity Risks: Phishing Email Attack Prevention and Cybersecurity Educa- Claim Settlement
95.72% tional Videos. During the reporting period the employee participation rate in safety culture training reached 100% with a satisfaction rating of 95.72%. *Process of handling work-related accident accidents
156 157OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Case: Fire emergency drill
In June 2024 Qingyuan Furniture Factory conducted an unannounced fire drill to strengthen emergency
coordination and safety awareness. The surprise scenario achieved full evacuation in 3m55s followed by
personnel verification in 20s (total 4m15s). Employees followed predefined routes to outdoor assembly points
without crowding meeting all compliance protocols.*Safety culture training: Guangzhou headquarters *Safety culture training: Tianjin Base
*Safety culture training: Qingyuan Base *Safety culture training: Chengdu Base
Case: Emergency drill for hazardous waste leakage incident
Case: Safety culture training
In November 2024 the Group executed a simulated hazardous waste leakage drill at Qingyuan Countertop
In October 2024 OPPEIN held a safety training workshop on its Eight Factory’s temporary storage area involving cutting operators supervisors EHS specialists and management.Compliance Principles and Eight Prohibitions. The session covered The exercise aimed to strengthen emergency response capabilities through training on protective equipment
workplace safety fire/emergency response chemical handling contrac- containment measures evacuation protocols and safety/environmental awareness.tor/specialized operations high-risk machinery and equipment guard-
ing with 38 attendees.Emergency management
The Group's Emergency Management Department organizes emergency response
2024 Performance drills for sudden environmental incidents at least biannually. All drill plans post-drill
summaries photographic documentation and attendance records must be submitted
Emergency drills conducted to the EHS Management Department. Additionally ＂On-Site Emergency Response
82 Cards for Sudden Environmental Incidents＂ must be prominently displayed in key times operational areas to ensure the functionality of infrastructure such as leak-proof
facilities containment systems and emergency equipment. Any identified damage or
operational failures require immediate repair or replacement. During the reporting
period the Group conducted 82 emergency drills.
158 159Labor relations management
Case: The 18th fourth session of the employee representative congress
We fully recognize that the Group’s development relies on the contributions of every employee. We highly value employee
feedback and actively improve labor relations. We continuously optimize management mechanisms and workflows
including the Workers' Congress rationalization suggestions collective consultation workplace transparency labor In December 2024 OPPEIN (Guangdong Region) held the Fourth Session of the 18th Workers' Congress at the
dispute mediation and other initiatives to establish a multi-dimensional efficient and smooth labor dialogue system headquarters training center with group leadership attending in person and employee representatives partici-
effectively safeguarding the rights and interests of all employees. Additionally we conduct employee engagement and pating online. The congress reviewed and approved 89 corporate policies and collective contracts while
satisfaction surveys to promptly understand staff concerns and create a comfortable working environment for all. conducting democratic evaluations of the union's 2024 work congress organization and departmental
2024 Performance Employee communication channels proposal responses. Senior management addressed employee concerns during the meeting and formally
recognized outstanding employee representatives.Rationalization OPPEIN has established regulations including the ＂Workers' Congress
Year-on-year Management Standards＂ ＂Employee Representative Symposium suggestions Guidelines＂ ＂Employee Feedback Survey Procedures Factory Affairs
submitted by employees growth Disclosure System＂ ＂Suggestion Proposal Rules＂ and ＂Employee
5087 15% Relations Management Policy＂ to encourage staff participation in corpo-
rate development. The Group collects employee suggestions through
Suggestions adopted (Category A) both online channels (OA platform performance system WeChat) and
2027 offline methods (cafeteria suggestion boxes Workers' Congress) cover-
ing production technology and management areas. All feedback
receives timely processing with appropriate rewards.Workers' Congress/Union proposal passed During the reporting period 5087 rationalization suggestions were
71 submitted by employees reflecting a 15% year-on-year increase; 2027 Case: Employee feedback service center
Category A suggestions (adopted and implemented with measurable
Efficiently resolved compliance-related outcomes) were executed;71 proposals were reviewed and approved by
the Workers' Congress/Union; 65 compliance-related proposals were OPPEIN's trade union has established an online "Employee Feedback Service Center" platform that integrates
proposals 65 efficiently resolved. suggestion submission progress tracking and result feedback. As a key supplement to the Workers' Congress
this platform enables direct employee-management communication significantly reducing issue resolution
time. With continuously improved features like upvoting/downvoting and satisfaction ratings the platform has
01 enhanced processing efficiency. During the reporting period the union received and fully addressed 106 valid
suggestions (100% resolution rate).Project Initiation
Progress Representative
Proposal Disclosure Election Representative
Follow-Up Training
Project 15 02
Retrospective 14 03 Proposal
13 04 Solicitation
Official Proposal
Meeting 12 05 Compilation
Preparatory 11 06 Proposal
Meeting 10 07 Response
0908
Popular Proposal
Vote Representative Representative Feedback
Selection Evaluation
*OPPEIN Workers' Congress Proposal Closed-Loop Management Model
160 161OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
2024 Performance Employee engagement and satisfaction survey SOCIAL RESPONSIBILITY
We are committed to building an agile organization characterized by high
Employee satisfaction rate satisfaction engagement and vitality. By leveraging engagement driver Guided by the vision of "Making Every Home Warm with Love" our Group strictly adheres to external regulations leverages
79.35% models and key influencing factors we continuously strive to enhance its resources and strengths to serve society and actively fulfills its social responsibilities. Deeply committed to public
employee engagement maximize workforce vitality and strengthen employ- welfare we established the Guangzhou OPPEIN Foundationwith the mission to "Support Vulnerable Communities
Engagement rate Vitality rate ees’ sense of belonging and loyalty to the Group. Annually we conduct a Advance Education Assist Families in Difficulty and Suboptimal Health and Promote Social Stability." Aligned with the
80.01% 81.05% comprehensive survey measuring engagement satisfaction and vitality vision of "Bringing Greater Warmth to Homes and Strength to Love" we consistently spearhead impactful initiatives such
evaluating aspects such as compensation and incentives benefits perfor- as rural revitalization educational support and the Love & Care Initiative.mance management training and career development leadership practices Rooted in our values we integrate Party-building principles into operational practices unifying developmental momen-
About 95.10% of employees work environment and job responsibilities. This enables us to gain deep tum and collaborating with diverse societal stakeholders. Since its inception in 2020 the OPPEIN Foundation has upheld
insights into employee needs and promptly address their concerns. Based on the philosophy of "Putting People First Caring for Society" proactively addressing needs through initiatives aiding the
expressed a low likelihood of
survey results the Group’s Human Resources department develops and disadvantaged supporting education and assisting families in crisis. Through charitable efforts in rural revitalization
leaving the company implements targeted action plans for improvement. disaster relief and education we repay society’s trust and strive to realize our vision of "Making Homes Warmer and Love
During the reporting period the Group achieved an employee satisfaction Stronger."During the reporting period the OPPEIN Foundation contributed RMB 15.90 million in donations and was recog-
95.55% rate of 79.35% engagement rate of 80.01% and vitality rate of 81.05% nized with honors including the "2024 Guangzhou Philanthropy Role Model."About of employees
(surpassing China’s national average of 79% and the manufacturing industry
reported pride in being part of OPPEIN benchmark of 75%). Key findings include: 95.10%of employees expressed a 2024 Performance
low likelihood of leaving the company; 94.30% demonstrated willingness to Total donations from the OPPEIN Foundation
go the extra mile to drive the company’s growth; 95.55% reported pride in
being part of OPPEIN. RMB 15.8963 million
【Satisfaction】 【Engagement】 【Vitality】
Basic Needs Psychological Needs Growth Needs
Salary benefits safety Sense off achiievementt Purpose meaning
tteamworrk equalliitty impact
*2023 Guangzhou Regional *2023 Meizhou Gold Award for *2024 Guangzhou Philanthropy *Guangdong Education Founda-
Employees are assets requiring proactive Human-centric technology-driven.Grade A Transparency Rating Poverty Alleviation and Relief Role Model tion Certificate
Employees are retainable assets Maximize value through human-ma- for Charity Organizationsacquisition and optimization. chine collaboration.Build organizational capabiliti (e.g. New expectations (integrity innovation
Compensation and benefits are strategic clarity corporate culture agility transparency fairness digitaliza-
used to reward employees for their leadership career development tion and health) to deliver holistic
time and output compensation benefits and tools/re employee experiences in exchange for
sources) in exchange for employee broader contributions. Vision Mission
engagement.Bringing Greater Warmth to Aid the Disadvantaged and People
Homes and Strength to Love with Disabilities Support the Needy
and Education Care for Families
162 1632024 Performance Educational support
Education serves as the cornerstone of rural revitalization and a pivotal Case: Revitalizing library facilities in 7 Pingyuan schools
Educational support donations force driving comprehensive economic cultural and social development
5.9485 in rural areas. The OPPEIN Charity Foundation deeply aware of educa- In September 2024 during the "June 30th Guangdong Poverty Allevia-RMB million tion’s transformative power has prioritized "Empowering Dreams tion Day" initiative OPPEIN Foundation discreetly completed the
Through Education" as a key philanthropic focus since its establishment. handover of its donated Love Library Rooms to provincial educational
School admission quotas secured In collaboration with the One Foundation we launched the Love & Care institutions. Seven schools in Pingyuan County Meizhou ? including
(including those from the Qingyuan Initiative to upgrade school infrastructure and foster safe healthy
Base Labor Union) campus environments. Additionally our proprietary program the
Shangju Dongqing Central Primary School and Hetou Xuefen Central
Evergreen Excellence Initiative is dedicated to funding underprivileged Primary School ? received either newly constructed or fully renovated 149 students to complete their education and realize their academic aspira- libraries. These spaces now empower children to immerse themselves
tions.From equipping libraries and computer labs to establishing teach- in reading broaden their intellectual horizons and cultivate global
Year-on-year increase ing funds scholarships and targeted support for remote mountainous perspectives through accessible literary resources.
16% schools the OPPEIN Charity Foundation continues to deepen and expand its educational impact.
During the reporting period the Foundation donated RMB 5.95
Case: Donation of a computer room
milliotoward educational support initiatives and secured 149 school
admission quotas (including those from the Qingyuan Base Labor
Union) marking a 16% year-on-year increase.In June 2024 the Guangzhou OPPEIN Foundation joined
the Green Love Computer Donation Ceremony hosted by
Building an educational charity brand the Guangdong Provincial Education Foundation. The
Intellectual empowerment precedes poverty alleviation and educational support has always been at the heart of the Foundation donated 21 green love computers to Longwo
OPPEIN Charity Foundation’s mission. Moving forward the Foundation will continue to uphold and amplify OPPEIN’s Second Central Primary School in Zijin County and estab-
"Family-Centric Culture" focusing on three flagship educational philanthropy initiatives: Evergreen Excellence Program lished a "Green Love Computer Classroom" boosting the
which is dedicated to supporting underprivileged students through scholarships and financial aid；Migrating Geese school’s educational informatization and providing a
Program which is committed to empowering children with disabilities through inclusive and adaptive educational modern teaching environment for teachers and students.programs；Spark Heritage Program which is focused on revolutionary heritage education and training at historical "red
base" sites.By leveraging these initiatives the OPPEIN Foundation will further advance China’s educational equity agenda
helping more students realize their dreams.Rural revitalization
Brand System Planning The Group actively implements General Secretary Xi Jinping's directives on rural revitalization and common prosperity
strengthening our systematic approach to empower rural communities. Leveraging industry expertise we participate in
Public Welfare Brand in "Love+Business" Public Welfare Brand in education
national campaigns including: 10000 Enterprises Aid 10000 VillagesPrecision Poverty Alleviation Program; 10000 Enter-
Qingsong Plan(focusing on education for the poor) prises Vitalize 10000 Villages Rural Regeneration Initiative; Green Building Materials Promotion Initiative; Greening and
Flying Geese Plan (focusing on education for disabled children) Lighting Improvement Projects. During the reporting period: OPPEIN Foundation allocated RMB 5.703 illion for rural devel-
Love Home Program Spark Inheritance Plan (focusing on education and training for red
Love Core Program opment programs; The Chairman donated RMB 5.3 million for Meizhou flood relief and post-disaster reconstruction. While bases)
expanding our business reach we will enhance practical governance capabilities promote philanthropic traditions in
poverty alleviation and strengthen integration between poverty eradication achievements and rural revitalization.
2024 Performance
The OPPEIN Foundation donation relief and post-disaster reconstruction
RMB 5.703million RMB 5.3million
*Oppein public welfare band system
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OPPEIN Foundation 2024 Rural Revitalization Initiatives Amount of donation (RMB)
Case: Material donation to support Meizhou flood
"Hundreds Thousands Tens of Thousands Initiative" Lighting Project 350000
Changtian Town Pingyuan County In April 2024 Qingyuan OPPEIN (Qingyuan Base) supported flood
relief in Shijiao Town by delivering daily necessities and emergen-
cy supplies to affected areas aiding response personnel and
"OPPEIN Forest" Greening Campaign 500000 victims. After Meizhou’s severe flooding in June 2024 OPPEIN
Dazhuo Town Pingyuan County Group Chairman Yao Liangsong donated 5.3 million yuan via the
OPPEIN Charity Foundation for disaster relief and rebuilding to
Cuiwen Basketball Court Renovation speed up production recovery and help residents restore normal 500000
Shenggang Village Changtan Town Jiaoling County Meizhou City lives.Red Core Cultural Center Construction 4000000
Dazhuo Town Pingyuan County Case: Rooted in hometown revitalized the homeland
"10000 Enterprises Vitalize 10000 Villages" Program 10000 In 2024 the OPPEIN Charity Foundation funded a basketball court and 77 energy-saving streetlights in Sheng-
Tianjin Jinghai District Red Cross Collaboration gang Village Jiaoling County improving local leisure facilities and nighttime safety. These rural revitalization
projects earned recognition from Changtan Town authorities with a "Rooted in Hometown Revitalizing the
Homeland" plaque.June 30th Rural Revitalization Campaign 30000
Zhuhai Rural Development Foundation
Qingyuan 630 Rural Empowerment Initiative 100000
(Coordinated with Guangdong Poverty Alleviation Day)
Shenggang Village Streetlight Upgrade 213000
Changtan Town Jiaoling County
166 167OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Party building activities
Case: Inherit the revolutionary spirit
The Group’s Party Committee follows ＂Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era＂. It
focuses on implementing the spirit of the 20th National Congress of the CPC and the Third Plenary Session of the 20th
In June 2024 the Party Branch and Labor Union of OPPEIN Chengdu Base jointly organized the themed hiking
Central Committee centering on guiding OPPEIN's high - quality development. While strengthening Party building the
event "Three Decades of Glory Building Dreams for the Future ? Retracing the Long March and Inheriting the
Committee uses the "Five Integrations" approach—integrating with production talent integrity culture and social
Revolutionary Spirit" to celebrate OPPEIN’s 30th anniversary. Aimed at embarking on a new journey and
responsibility. This creates OPPEIN's "Party Building + Five Integrations" model infusing Party building vitality into
drawing strength from Party history the activity integrated the Red Long March spirit with OPPEIN’s 30-year
management and driving innovation. In the drive for national rejuvenation OPPEIN shows the responsibility of a private
development vividly showcasing the company’s enduring vitality over three decades.enterprise.During the reporting period the Group’s Party Committee recruited 2 new Party members approved the conversion of 2
probationary members to full membership and organized 5 Party membership activists and 2 developing members to
participate in specialized training programs. The Group’s Party member volunteer team was awarded the "Kapok Pioneer
List" Model Team by Guangzhou’s non-public economic organizations and the Group’s Party building case Deepening
'Party Building + Five Integrations' to Build a World-Class Home Furnishing Enterprise with High Quality won the "First
Prize for Party Building Innovation Cases" among Guangzhou’s non-public economic organizations.Case: OPPEIN’s Third Party Branch joined non-public sector party-building mentorship unit
*Group Party Committee Honored as Guangzhou’s "Double *Group’s Third Party Branch Wins First Prize in Party
Strengthening and Six Excellences" Model Party Organization Branding Initiatives
In December 2024 during the 2022-2024 Party-Building Brand Creation
Evaluation for non-public economic sector organizations in Qingyuan
City OPPEIN’s Third Party Branch was awarded the First Prize. Due to
its extensive experience accumulated during the brand development
phase the branch was also officially appointed as a member of the
"Qingyuan Non-Public Sector Party-Building Mentorship Unit" marking
the start of a new journey in leading and exemplifying Party-building
practices for non-public enterprises.*Group Party Committee Launches Summer Cooling Initiative *Inclusion in 2024 (Inaugural) National Outstanding
Corporate Party Affairs Thesis Collection
168 169OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
可持续发展关键绩效表 Norm Unit Performance in 2023 Performance in 2024
Number of proposals considered by the Nominating Committee cases 0 1
Governance
Total Number of Proposals Reviewed by Specialized Committees times 11 12
Norm Unit Performance in 2023 Performance in 2024
Number of periodic reports issued pieces 4 4
Corporate governance Number of ESG reports issued pieces 1 1
Business income RMB 1 billion 22.782 18.925 Number of interim announcements issued pieces 108 96
Annual net profit RMB 1 billion 3.036 2.599
Number of performance briefing meetings held times 3 3
Total tax payment RMB 1 billion 1.497 1.446
Number of online views for performance briefing times 92000 133000
Total cash dividends paid RMB 1 billion 1.670 1.502
Other investor exchange activities times 2 3
Business income per capita RMB 947512.89 919492.76
The number of investor questions answered by the "Shanghai Stock
Number of Board of Directors person 7 7 Exchange e-Interaction" platform cases 61 42
O f which: Independent directors person 3 3 Risk and compliance management
non-independent director person 4 4 Number of legal training sessions conducted times 33 24
Number of supervisors person 3 3
Legal training hours hours 66 47
Of which:Shareholder representative supervisor person 2 2
Number of legal training sessions person-time 309 228
Employee representative supervisor person 1 1
Number of executives person 5 5 Business ethics
Of which: Male executives person 3 3 Employee Integrity Pledge signing rate % 100 100
Female executives person 2 2 Number of anti-corruption visits units 156 158
Number of General Meetings of shareholders times 2 2 Of which: Suppliers units 42 50
Of which: Extraordinary General Meeting times 1 1
Dealers units 114 108
N umber of proposals considered at the General Meeting of Shareholders cases 18 15 N umber of anti-unfair competition and anti-monopoly related legal cases 0 0
Number of Board of Directors Meetings times 8 9 proceedings
Number of proposals considered by the Board Handling rate of business ethics complaints cases 186 213cases
of Directors Meetings 41 40
Number of Board of Supervisors meetings times Number of reported business ethics complaints received % 100 100 6 6
N umber of proposals reviewed by the Board of cases 16 16 Number of Righteousness culture training sessions conducted times 164 67Supervisors
Number of meetings of the Remuneration and times 1 1 Number of employees trained in Righteousness culture training sessions Assessment Committee person-time
3260223217
Number of proposals considered by the cases
Remuneration and Assessment Committee 2 3 Righteousness culture training coverage rate % 100 100
Number of meetings of the Audit Committee times 4 4
N umber of proposals considered by the Audit Committee cases 9 7
Number of strategic committee meetings times 0 1
Number of proposals considered by the Strategy
Committee cases 0 1
N umber of mee tings of the Nominating timesCommittee 0 1
170 171OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Environment Norm Unit Performance in 2023 Performance in 2024
Norm Unit Performance in 2023 Performance in 2024 Annual standard coal savingsi) thousand tons 12.54 12.48
Resource consumption and management Of which: Guangzhou Headquarters thousand tons 0.36 0.28
Qingyuan Base
Total water consumption tonnes 1907672.00 1823584.29
thousand tons 5.47 4.78
Tianjin Base thousand tons 3.23 3.20
Water consumption intensity Metric tons/RMB 1 million 83.74 96.36
Wuxi Base
Total wastewater discharge tonnes 1213605.00 1383314.00
thousand tons 3.48 4.23
Annual CO2 equivalent emission reductionsii)
Of which: Domestic sewage tonnes 707351.00 1379759.00
thousand tons CO2 29.30 27.39
Of which： Guangzhou Headquarters thousand tons CO2 0.79 0.57
Production wastewater tonnes 506254.00 3555.00
Qingyuan Base
Petroleum consumption cubic meters 3429510.00 2949173.00
thousand tons CO2 11.82 9.91
Tianjin Base
Diesel consumption liter 313510.55 266414.54
thousand tons CO2 8.79 8.17
Wuxi Base thousand tons CO2 7.90 8.74
Gasoline consumption liter 109153.03 110269.71
Certification pass rate of procured ENF panels % 100 100.00
Purchased electricity MWh 338150.99 310918.43
Consumption of refrigerant HCFC-22iii) kilograms
MWh/RMB 1 million 14.84 16.43 373 172.50 Intensity of consumption of purchased electricity
Consumption of refrigerant HFC-32 kilograms 60 60.00
Total energy consumption in standard coalT tonnes 46519.70 42491.95
tonnes standard Consumption of refrigerant R-410A 2.04 2.25 kilograms 480 450.00 Energy intensity coal/RMB 1 million
% 9.83 11.39 Emissions managementProportion of renewable energy consumption
Synchronized operation rate of environ- % 100 100
Installed photovoltaic capacity MW 37.54 56.13 mental protection
Of which: Guangzhou Headquarter MW 0.80 0.80 Qualified rate of pollutant monitoring % 100 100
Qing RMB Base MW 17.74 20.40 Direct GHG emissions (Scope 1)iv) tCO2 10368.67 7316.52
tCO2 418.45 422.92
Tianjin Base MW 8.30 9.13 Region: Guangzhou Headquarters
MW 10.70 13.80 Qingyuan Base tCO2 3992.12 3430.49 Wuxi Base
Chengdu Base MW - 12.00 Tianjin Base tCO2 4684.85 2414.72
Photovoltaic power generation MWh 41270.00 41060.38 Wuxi Base tCO2 704.60 486.68
MWh 1200.00 906.23 Chengdu Base tCO2 560.09 463.37 Of which: Guangzhou Headquarters
MWh 18000.00 15730.61 Wuhan Base tCO2 8.56 98.33 Qingyuan Base
Tianjin Base MWh 10630.00 10518.00
Wuxi Base MWh 11440.00 13905.54
172 173OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Norm Unit Performance in 2023 Performance in 2024 Norm Unit Performance in 2023 Performance in 2024
Indirect GHG emissions (range 2)v) tCO2 192847.51 166838.83 Waste management
Region: Guangzhou Headquarters tCO2 11734.66 11734.66 Total non-hazardous waste generation tonnes 204917.59 232200.25
Qingyuan Base tCO2 79385.76 65766.79 Of which: total domestic waste generated tonnes 17688.89 6076.64
Tianjin Base tCO2 30404.40 28727.42 total industrial waste generated tonnes 187228.70 226123.61
Wuxi Base tCO2 48865.28 33544.88 Amount of non-hazardous waste recycled tonnes 187228.70 226123.61
Chengdu Base tCO2 22226.55 20884.62 Of which: Waste paper tonnes 2906.85 3276.11
Wuhan Base tCO2 230.86 6765.07 Scrap metal tonnes 1882.80 3555.51
Total GHG emissions (Scope 1+2) tCO2 203216.18 169337.88 Waste plastic tonnes 1834.90 2161.74
Region: Guangzhou Headquarters tCO2 12153.11 11572.97 Waste wood tonnes 176852.70 214584.86
Qingyuan Base tCO2 83377.88 69197.28 Waste glass tonnes 3142.53 1141.42
Tianjin Base tCO2 35089.25 31142.14 Waste leather tonnes 66.79 103.62
Wuxi Base tCO2 49569.89 34031.56 Waste mixed material tonnes 511.14 1273.26
Chengdu Base tCO2 22786.64 21348.00 Waste paperboard tonnes 26.00 23.00
Wuhan Base tCO2 239.41 6863.40 Waste foam tonnes 3.00 2.50
Total GHG emissions intensity tonnes/RMB 1 million 8.92 8.95 Waste and scrap rubber tonnes 2.00 1.60
NOx emissions tonnes 1.08 1.68 Harmless waste recycling rate % 91.37 97.38
SOx emissions tonnes 0.05 0.19 Intensity of non-hazardous waste emissions tonnes/RMB 1 million 8.92 12.27
VOC emissions tonnes 16.26 14.33 Total amount of hazardous waste generatedvi) tonnes - 2597.03
Hydrogen sulfide emissions tonnes 0.00 0.00 Of which: Wastewater containing paint
(HW12 substance) tonnes - 858.07
Particulate emissions tonnes 21.59 21.24 Waste oil paint residue
( HW12 substance) tonnes - 847.43
Waste empty bucket
(HW49 substance) tonnes - 536.35
Waste contaminants (HW49 substances) tonnes - 264.60
Waste glue (HW13 substances) tonnes - 34.85
Waste glue residue
(HW13 substances) tonnes - 23.42
Waste activated carbon
(HW49 type material) tonnes - 12.83
Paint-containing sludge
(HW12-typesubstances) tonnes - 9.05
Waste solvents
(HW06 type substanes) tonnes - 8.43
Waste engine oil
(HW08 type substanes) tonnes - 2.01
174 175OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Norm Unit Performance in 2023 Performance in 2024 Supply chain
Norm Unit Performance in 2023
Proper disposal rate of hazardous waste % 100.00 100.00 Performance in 2024
Total paper consumptionvii) tonnes 308.93 288.73 Responsible procurement
Of which: A3 tonnes 1.14 1.49 Legally Traceable Ratio of Raw Materials for Panels % 100 100
A4 tonnes 264.51 275.32 Integrity Cooperation Commitment Letter Signature Rate % 100 100
A5 tonnes 23.80 6.01 Supplier Management
Logistics consignment note tonnes 10.65 4.11 Total number of suppliers suppliers 2026 2071
Needle Duplex Printing paper tonnes 7.09 0.08 Number of suppliers in mainland China suppliers 2017 2062
Needle Triple Printing Paper tonnes 1.72 1.46 Of which: Northeast China suppliers 20 12
A0 150G 84*120cm tonnes 0.02 - North China suppliers 133 114
A1 59*84cm tonnes 0.01 - Eastern China suppliers 531 530
A1 60*84cm tonnes 0.01 - Southern China suppliers 1146 1219
A5 color cardboard tonnes 0.00 0.18 Central China suppliers 76 90
A4 color cardboard tonnes 0.00 0.09 Northwest China suppliers 10 6
Practice environmental concepts Southwest China suppliers 101 91
Number of newly purchased and leased Number of overseas suppliers suppliers 9 9
new energy buses minibuses and small
passenger cars during the reporting period vehicles 22 6
Proportion of localized procurement amount % 99.56 99.57
Proportion of purchase amount from suppliers in
Number of trees planted vehicles 780 734 mainland China % 98.31 98.92
Environmental investment ten thousand RMB 6429.88 7028.44 Of which: Northeast China % 0.14 0.08
Notes: North China % 5.84 6.81
i)The calculation of energy consumption conversion standard refers to the General Principles for Comprehensive Energy Consumption Calculation (GB/T
2589-2008) issued by the State Administration for Market Regulation and the National Standardization Administration of China; Eastern China % 27.20 23.48
ii)The calculation factors for carbon dioxide emissions reduction from photovoltaic power generation in 2023 refer to the "2019 Emission Reduction Project
China Regional Power Grid Baseline Emission Factors" and the calculation factors for carbon dioxide emissions reduction from photovoltaic power genera- Southern China % 52.69 54.91
tion in 2024 are as follows:Refer to the '2023 Emission Reduction Project China Regional Power Grid Baseline Emission Factors';
iii)Refrigerants are entrusted to a third-party professional organization for recovery; central China % 7.04 8.11
iv)Scope 1: Greenhouse gas emissions include direct emissions from gasoline diesel and natural gas; The calculation of greenhouse gas emissions refers to
the "Accounting Methods and Reports for Enterprise Greenhouse Gas Emissions" by the Ministry of Ecology and Environment of ChinaGuidelines for Power Northwest Territories % 0.15 0.05
Generation Facilities (2022 Revised Edition);
v) Scope 2: Greenhouse gas emissions include indirect emissions from purchased electricity; The calculation factors for greenhouse gas emissions in Scope Southwest China %
2 of 2023 are based on the 2019 national electricity carbon dioxide emission factors and the 2024 scopeThe greenhouse gas emissions for the second quarter 5.25 5.49
of 2022 will be based on the national electricity carbon dioxide emission factors released by the National Bureau of Statistics on December 20 2024; Proportion of procurement amount from overseas
vi) "-" is the performance metric for the year in which relevant data has not been disclosed; su ppliers % 1.69 1.08
vii) The unit weight of various types of paper is as follows: A3 paper 9.98g/sheet; 4.37g/sheet of A4 paper; A5 paper 2.18g/sheet; Logistics consignment note
3.58g/sheet; Needle type two-piece printing paper 4.99g/sheet; Needle type triple injectionPrinting paper 7.58g/sheet; A0-150G-84 * 120cm paper
151.2g/sheet; A1-59 * 84cm paper 74.34g/sheet; A1-60 * 84cm paper 75.60g/sheet; A5 color cardboard 90g per sheet; A4 color cardboard180g per sheet.
176 177OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Norm Unit Performance in 2023 Performance in 2024 Product and service
Number of suppliers signed up and compliant with the suppliers 2026 2071 Norm Unit Performance in 2023 Performance in 2024
company's supply chain code of conduct
Number of suppliers development selections suppliers 758 728 Product Quality Upgrade
Of which: Number of suppliers upgraded to regular supplier suppliers 621 559 Number of product recalls pieces 0 0
Number of new suppliers participating in site visits suppliers 88 159 Percentage of product recalls % 0 0
Number of suppliers participating in annual performance
appraisals suppliers 1630 1064 Pass rate of external sampling of products % 100 100
Of which: Kitchen cabinets suppliers 487 383 Number of quality internal audits times 1 1
Integrated home suppliers 373 298 Number of training sessions on quality culture times 33 78
Door suppliers 311 277 Quality culture training hours hours - 56.75
Bathroom vanities suppliers 373 45 N umber of people covered by quality culture training person-time - 1756
Houseware suppliers 86 61 Innovative research and development
Number of suppliers with sustainable certification suppliers - 559 Product R&D Investment RMB 1 billion 11.26 10.23
N umber of suppliers with quality management system certification Number of suppliers with certified quality suppliers - 580 Product R&D investment in last 5 years RMB 1 billion 44.98 55.21
N umber of suppliers with occupational health and safety management system certification suppliers - 307 Percentage of revenue invested in product R&D % 4.94 5.41
Number of suppliers with occupational health and safety suppliers
management system certification - 285 Number of R&D personnel person 2730 1955
Number of suppliers suspended for non-compliance suppliers 52 13 Percentage of R&D personnel to total headcount % 11.35 9.50
Number of potential suppliers rejected for non-compliance suppliers 143 56 Annual number of patent applications items 65 151
Number of supplier trainings times 67 75 Of which: Invention patents items 3 22
Number of trained suppliers suppliers - 152 Utility model patents items 38 39
Supplier ESG training times - 1 Appearance Patent items 24 90
Industrial development promotion Cumulative number of patent applications items 1007 1089
Number of standards developing involved items 27 69 Of which: Invention patents items 30 63
Of which: National standard items 4 20 Utility model patents items 570 548
Industry standard items 7 12 Appearance Patent items 407 478
Group standard items 16 37 Cumulative computer software copyrights items 98 138
Note: "-" represents the caliber of performance without disclosure of relevant data for the year.
178 179OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Norm Unit Performance in 2023 Performance in 2024 Employees and social
Customer rights protection Norm Unit Performance in 2023 Performance in 2024
Number of customer satisfaction surveys times - 2 Compliant employment and equal opportunities
Consumer basic service satisfaction score score 8.92 8.75 Number of child labors detected person 0 0
Product quality reputation score score 8.63 8.3 Number of forced labors detected person 0 0
Complaints timely handling growth rate % 9 1.06 Number of strikes/lockouts times 0 0year-on-year
Solution satisfaction growth rate year-on-year % 15 6.8 Labor contract signing rate % 100 100
Number of specialized training sessions for customer person-time Social insurance coverage % 100 100
complaint response customercomplaint response 712 698
Total duration of customer complaint Employee medical check-up rate % 100 100 response special training hours 78 83
Number of specialized training sessions on Total number of regular employees person 24044 20582 customer complaint response times 37 37
Number of assessments for responding to By gender: Female employees person 7683 6542 customer complaints times 29242 30244
Male employees person 16361 14040
Customer complaint response assessment
pass rate % 94.04 96.57
By position: Full-time junior empolyees person 22366 18989
Number of information leakage incidents times 0 0
Full-time middle management empolyees person 1618 1529
Total investment in information security ten thousand dollars - 299.11
Full-time senior management empolyees person 60 64
Number of information security training and
practice sessions times 1 3 By age: Employees under 30 years old person 7893 5701
Number of people covered by information security training and practice person-time 8000 9724 Employees aged 30-50 (not included) person 15831 14415
Note: "-" represents the caliber of performance for which the relevant data were not disclosed in the current year. Employees over 50 years old person 320 466
By education attainment: Graduate students and above person 136 129
Undergraduate person 4187 3923
College and below person 19721 16530
Annual total number of newly recruited employees person 5850 3265
Total number of employees on short-term contracts (retired and rehired) person 70 52
Total number of employees from ethnic minorities person 1379 1085
Total number of retired military employees person 255 214
Total employee turnover rate % 36.79 44.24
By gender: Female employee turnover rate % 32.96 37.71
Male employee turnover rate % 38.45 47.29
By age: Employee turnover rate for employees under 30 years old % 40.55 60.33
Employee turnover rate for employees aged 30-50 (not included) % 34.34 37.61Employee turnover rate for employees over 50 years old (excluding） % 20.88 10.94
180 181Norm Unit Performance in 2023 Performance in 2024 Norm Unit Performance in 2023 Performance in 2024
Employee compensation and performance By position: Training hours per full-time junior employee hours 33.94 33.94
Number of employees covered by performance appraisals and person 24008 20115 Training hours per full-time middle management employee hours 24.06 25.15
incentive bonuses
Of which: Number of management employees person 1678 1423 Training hours per full-time senior management employee hours 55.62 43.01
Number of non-management employees person 22366 18692 Total training hours on short-term contracts (retired and rehired employee) hours 451.33 285.48
Performance Appraisal and Incentive Bonus Coverage Employee Ratio % 100.00 100.00 Average training hours for short-term contracts (retired rehired employee) hours 6.74 5.49
Of which: Management level employees % 100.00 100.00 Occupational health and safety
Non-management level employees % 100.00 100.00 Operating hours lost rate reduction per millions of man-hours % 44 33.21
Employees took parental leave person 109 121 Employee medical check-up rate % 100 100
Of which: Male employees person 22 35 Cumulative number of firefighting and other specialized drills conducted times 104 82
Female employees person 87 86 Hidden danger investigation and rectification rate % 100 100
Employee welfare construction expensesii) RMB 1 million - 9500 Coverage rate of safety risk prevention training % 100 100
Number of talent apartments provided set 526 526 Certification rate of special operation personnel on duty % 100 100
Assistance to employees in difficultyiii) person 29 45 Detection rate of occupational hazard factors % 100 100
Consoled sick and bereaved employees person 36 9 EHS Training Coverage % 100 100
Cultural and sports care activities times 38 43 Total EHS training hours hours 182400 175996
Employee training and career development Total EHS trainees person 16330 14900
Amount invested in vocational training RMB 1 million 874 713.7 Total number of EHS trainees person-time 162110 114240
Total number of regular employees trained person-time 725061 617208 Employee communication and grievances
Total number of formal employees trained person 24044 20582 Total number of employee suggestions received pieces 4407 5087
By gender: Female employee training ratio % 51 52 Number of suggestions adopted and achieve results (category A) pieces 2147 2027
Male employee training ratio % 49 48 Group employee satisfaction rate % 79.74 79.35
By position:Training ratio of junior employees % 49 48 Group employee dedication rate % 80.10 80.01
Middle management training ratio % 21 22 Vitality of Group Employees % - 81.05
Training ratio of senior management % 30 30 Community involvement
Total training hours for regular emloyee hours 806233 685787 Hours of participation in the Group's public service activitie s hours 2000+ -
Of which: Offline training hours 82885 75339 Number of people covered by the Group's public welfare activities ten thousand people 20+ -
online training hours 723348 610448 Group Public Welfare Donation RMB 1 million 525.37 1589.63
Training hours per regular employee hours 34.34 33.31 "Notes:
1) Employee turnover rate for employees aged 50 and above in 2023 includes retired employees;
By gender: Training hours per female employee hours 33.04 31.82 ii) ""-"" is the caliber of performance for the year in which the relevant data is not disclosed;
iii) The caliber of the 2023 data for helping employees in difficulty includes duplicated assistance and the caliber of the 2024 data for helping employees
in difficulty does not include duplicated assistance.Training hours per male employe hours 34.95 34.01
182 183OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
GRI INDEX Sustainability Reporting Disclosure item Chapter
Standards
【Instructions for use】OPPEIN Home Group Inc. and its subsidiaries have reported the information referenced in this 2-22 Statement on sustainable development strategies Board statement; Sustainability management
GRI Content Index from January 1 2024 to December 31 2024 by reference to the GRI Standards.
2-23 Policy commitments About the present report
【GRI used 1】GRI 1: Foundation 2021 Corporate governance; Business ethics; environ-
2-24 Embedding policy commitments mental management systems
4. Strategies 2-25 Processes to remediate negative impacts Business ethics; Customer rights and benefits;
Sustainability Reporting policies and Employee responsibilityDisclosure item Chapter GRI 2: General
Standards Disclosure practices 2-26 Mechanisms for seeking advice and raising
2021 concerns Business ethics; Employee responsibility
2-1 Organizational details About this report
2-27 Compliance with laws and regulations Business ethics; Responsible marketing
2 -2 Entities included in the organization's sustainable
1. Organization development report
About this report
2-28 Membership in the association About OPPEIN
and reporting 2-3 Reporting Period frequency of reporting and contact
methods person About this report 2-29 Methods of stakeholder engagement Sustainability management; Corporate governance
There have been no significant changes in the size structure 5. Stakeholder
2-4 Restatement of information and ownership of the Group's organization compared to the participation
2023 Responsibility report 2-30 Collective bargaining agreements Employee responsibility
2-6 Activities value chains and other business relationships Board statement; About OPPEIN 3-1 Process for identifying substantive issues Sustainable development management
GRI 3: Substantive
2. Activities 2-7 Employees Employee responsibility issues 2021 3-2 Substantive list of issues Sustainable development management
and staff
2-8 Workers other than employees Employee responsibility; Sustainability KPI index - 3-3 Management of substantive issues Sustainable development managementEmployees and society
201-1 Direct economic value generated and
2-9 Governance structure and composition Corporate governance distributed Reference to the Group's annual report for 2024
201-2 Financial impacts of climate change and other
2-10 Nomination and selection of the highest governance GRI 201: Economic risks and opportunities Addressing to climate change
b ody Corporate governance Performance 2016
GRI 2: General 201-3 Defined benefit plan obligations and other Employee responsibility
Disclosure 2021 retirement plans 2-11 Chairman of the highest governance body Corporate governance
201-4 Financial subsidies granted by the Govern-ment Reference to the Group's annual report for 20242-12 Role of the highest governance body in terms of
managerial impacts Corporate governance 202-1 Ratio of the standardized starting level wage
GRI 202: Market to the local minimum wage by sex Reference to the Group's annual report for 2024
2-13 Delegation of responsibility for managing impact Risk and compliance controls; Addressing climate change Performance 2016
202-2 Percentage of executives hired from local 3. Governance communities Reference to the Group's annual report for 2024
2-14 Role of the highest governance body in sustainable
development reporting Sustainable development management GRI 203: Indirect 203-1 Infrastructure investment and support services social responsibility
Economic
2-15 Conflict of interest Corporate governance; Reference to the Group's annual Impacts 2016 report for 2024 203-2 Significant indirect economic impacts social responsibility
2-16 Communication of critical concerns Sustainable development management GRI 204: Procurement 204-1 Proportion of expenditure on procurement Supplier management; Sustainability KPI index -
Practices 2016 from local vendors Supply chain
205-1 Operational sites for which corruption risk
2-17 Common knowledge of the highest governance body Sustainable development management assessments have been conducted Business ethics; Responsible marketing
GRI 205: Anti-
2-18 Performance assessment of the highest governance 205-2 Communication of and training in anti-corrup-
b ody Sustainable development management
Corruption 2016
tion policies and procedures
Business ethics; Responsible marketing
205-3 Identified incidents of corruption and action Business ethics
2-19 Remuneration policy Corporate governance taken
2-20 Procedures for determining remuneration Corporate governance; Employee responsibility
184 185Sustainability Reporting Disclosure item Chapter Sustainability Reporting
Standards Standards Disclosure item Chapter
GRI 206: Undue Comp-
Board statement; Sustainability management 206-1 Lawsuits against anticompetitive behavior etitive Behavior 2016 antitrust Business ethics 306-1 Waste generation and waste-related significant impacts Emissions management
About the present report 207-1 Tax policy Business ethics 306-2 Management of significant impacts associated with waste Emissions management
GRI 207:
Taxation 2019 207-2 Tax governance controls and risk management Business ethics GRI 306: Waste 2020 306-3 Waste generated
Emissions management; Sustainability KPI index -
Environment
Emissions management; Sustainability KPI index -
207-3 Stakeholder engagement and management of tax concerns Business ethics 306-4 Waste transferred from disposal Environment
Business ethics; Employee responsibility Emissions management; Sustainability KPI index - 301-1 Weight or volume of material used Sustainability KPI index - Environment 306-5 Waste entering disposal Environment
Business ethics; Responsible marketing GRI 301: 308-1 New suppliers screened using environmental evaluation
Materials 2016 301-2 Recycled input materials used Circular economy GRI 308: Supplier dimensions Supplier management
Environmental
About OPPEIN Assessment 2016 308-2 Negative environmental impacts of supply chains and 301-3 Recycled products and their packaging materials Green production system actions taken Supplier management
Sustainability management; Corporate governance
302-1 Energy consumption within the organization Resource utilization and management; Sustainabili- 401-1 New employee hires and employee turnover Employee responsibility; Sustainability KPI index - ty KPI index - Environment Employees and society
Employee responsibility GRI 401: 401-2 Benefits provided to full-time employees (excluding
302-3 Energy intensity Sustainability KPI index - Environment Employment
2016 temporary or part-time employees)
Employee responsibility
GRI 302:
Energy 2016 302-4 Reduction of energy consumption Resource utilization and management 401-3 Parental leave Employee responsibility; Sustainability KPI index - Employees and society
Resource utilization and management; Green
302-5 Reducing energy demand for products and services production system; Circular economy 403-1 Occupational health and safety management system Employee responsibility
303-1 Interaction between organizations and water as a shared Resource utilization and management 403-2 Hazard identification risk assessment and incident
resource investigation
Employee responsibility
303-2 Management of water discharge-related impacts Resource utilization and management 403-3 Occupational health services Employee responsibility
GRI 303: Water 303-3 Water withdrawal Resource utilization and management 403-4 Occupational health and safety matters: worker participa-tion consultation and communication Employee responsibilityResources and
Wastewater 2018 GRI 403: Emissions management; Sustainability KPI
303-4 Water discharge Occupational index - Environment 403-5 Occupational health and safety training for workers Employee responsibility
Health and
Safety 2018
303-5 Water consumption Sustainability KPI index - Environment 403-6 Promotion of the health of workers Employee responsibility
304-1 Operations owned leased managed by the organization in
biodiversity-rich areas located in or adjacent to protected areas Ecosystems and biodiversity 403-7 Prevention and mitigation of occupational health and Employee responsibility
and outside protected areas safety impacts directly linked by business relationships
GRI 304: 403-8 Workers covered by an occupational health and safety 304-2 Significant impacts of activities products and services on Ecosystems and biodiversity Employee responsibility
Biodiversity management system
2016
304-4 Species listed on the IUCN Red List and national conserva- Employee responsibility; Sustainability KPI index -
tion lists in habitats in the area affected by the operation
Ecosystems and biodiversity 403-9 Industrial injuries Employees and society
Emissions management; Sustainability KPI index -
305-1 Direct (Scope 1) Greenhouse gas emissions Environment 403-10 Work-related health problems Employee responsibility
305-2 Energy Indirect (Scope 2) GHG Emissions Emissions management; Sustainability KPI index - Environment 404-1 Average hours of training per employee per year
Employee responsibility; Sustainability KPI index -
Employees and society
GRI 305: GRI 404: Training 305-4 Greenhouse gas emission intensity Emissions management; Sustainability KPI index - 404-2 Programs for upgrading employee skills and transition Environment and Education assistance programs Employee responsibilityEmissions
20162016
305-5 Greenhouse gas emission reductions Resource utilization and management; Sustainabili- 404-3 Percentage of employees receiving regular performance Employee responsibility; Sustainability KPI index - ty KPI index - Environment and career development appraisals Employees and society
305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other Resource utilization and management; Sustainabili- GRI 405: Diversity and
significant air emissions ty KPI index - Environment Equal Opportunity 2016 405-1 Diversity of governing bodies and employees Corporate governance; Employee responsibility
108161 187OPPEIN Home Group Co. · 2024 Sustainability Report ABOUT THE REPORT PREFACE GOVERNANCE ENVIROMENT SUPPLY CHAIN PRODUCTS AND SERVICES EMPLOYEES AND SOCIETY APPENDIX
Sustainability Reporting
Standards Disclosure item Chapter SSE SUSTAINABILITY REPORT TOPIC INDEX
GRI 406: Anti-Dis-
crimination 2016 406-1 Incidents of discrimination and corrective actions taken Employee responsibility 【Reference standard】Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4 - Preparation
GRI 407: Freedom of of Sustainability Reports Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustain-
Association and Collective 407-1 Operational sites and suppliers where freedom of association and collective bargaining rights may be at risk Employee responsibilityBargaining 2016 ability Reports (for Trial Implementation)
306-3 Waste generated GRI 408: Child Labor 2016 408-1 Operating sites and suppliers at risk of major child labor incidents Employee responsibility
Dimension Serial number Topics Corresponding chapters
GRI 409: Forced or
306-4 Waste transferred from disposal 409-1 Operating sites and suppliers with significant risk of incidents of Compulsory Labor 2016 forced or compulsory labor Employee responsibility
1 Addressing climate change Addressing climate change
306-5 Waste entering disposal 413-1 Operational sites with local community involvement impact
GRI 413: Local assessment and development plans
Employee responsibility
2 Pollutant emissions Emissions management
Communities 2016
413-2 Operations with actual or potential significant negative impacts on local communities Employee responsibility
3 Waste disposal Emissions management
414-1 New suppliers screened using social evaluation dimensions Supplier management
GRI 414: Supplier 4 Ecosystem and biodiversity Ecosystems and biodiversity
Social Assessment 2016 conservation
401-1 New employee hires and employee turnover 414-2 Negative social impacts in the supply chain and actions taken Supplier management Environment 5 Environmental compliance Environmental management system
416-1 Assessment of the health and safety impacts of product and service
management
categories Product quality upgradesGRI 416: Client Health 6 Energy use Resource utilization and management
and Safety 2016
401-3 Parental leave 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Product quality upgrades 7 Water resource utilization Resource utilization and management
403-1 Occupational health and safety management system 417-1 Requirements for product and service information and labeling Product quality upgrades
8 Circular economy Circular economy
GRI 417: Marketing 417-2 Incidents of non-compliance concerning product and service
and Signage 2016 information and labeling Product quality upgrades
9 Rural revitalization Social responsibility
403-3 Occupational health services 417-3 Incidents of non-compliance concerning marketing communications Responsible marketing 10 Social contribution Social responsibility
418-1 Substantiated complaints concerning breaches of customer privacy
GRI 418: Customer Privacy 2016 and losses of customer data Customer rights and benefits 11 Innovation driven Innovation research and development
403-5 Occupational health and safety training for workers 12 Ethics of Science and technology Innovation research and development
403-6 Promotion of the health of workers 13 Supply chain security Sustainable procurement supplier management
Social 14 Equal treatment of small and medium-sized enterprises Supplier management
15 Product and service safety and quality Product quality upgrades
403-9 Industrial injuries 16 Data security and customer privacy protection Customer rights and benefits
403-10 Work-related health problems 17 Employee Employee responsibility
404-1 Average hours of training per employee per year 18 Due diligence Supplier management
19 Stakeholder communication Sustainable development management
Sustainable
development-related 20 Anti-commercial bribery and governance anti-corruption Business ethics
405-1 Diversity of governing bodies and employees 21 Anti-unfair competition Business ethics
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