Building a Solid Governance

About This Report ? Responsibility Sustainable Development Foundation with Integrity

About Solex ? Focus-Special Topics ?? Governance ?? and Diligence ??

Introduction ? Company Profile ? Deepening the Robotics Sector and ESG Management Framework ?? Corporate Governance ??

Reporting Scope ? Business Operations ? Consolidating Industrial Layout ?? Information Reporting Mechanism ?? Compliance Operation

Reporting Period ? and Risk Management ??Industry Layout ? Strengthening Industry Engage- ESG Goals ?? Investor Relations Management

Preparation Basis ? Brand Development ? ment and Showcasing at Profes- Due Diligence ?? and Shareholders’ Rights

Data Explanation ? Milestones in ???? ?? sional Exhibitions ?? ESG Risk Management ??

and Interests ??

Definition ? Major Honors in ???? ?? Materiality Assessment ?? Business Ethics ??

Confirmation and Approval ? Communications with Stakeholders ??

Access to this Report ?

Message from the Chairman ?

Nurturing the Ecosystem

Sustainable Development Benefiting the People ? and Advancing Sustainably Empowering Industry Attracting Talent

Highlights in ???? and Fulfilling Responsibilities Through Green Development ?? and Creating Enduring Value ?? and Building Unity ?? with Kindness ??

Future Outlook ??

Response to Climate Change ?? Innovation-driven ?? Protection of Employees’ Rights Social Welfare ??

Environmental Compliance Product and Service Safety and Interests ?? Rural Revitalization ??

Annex ?? Management ?? and Quality ?? Occupational Health and Safety ??

Information Security

Resource Utilization ??

Key Performance ?? and Privacy Protection ??

Pollutant Emissions ??

Indexes ?? Supplier Management ??

Implementation of Green Operation ??

Assurance Report ??

Protection of Ecosystem

Feedback ??? and Biodiversity ?????? Environmental Social and Governance (ESG) Report Opening section ?

About This Report

Introduction Preparation Basis Appellation Description

This is the ?th Environmental Social and Governance Report · Shanghai Stock Exchange Self-Regulatory Guidelines for Listed For the ease of expression and readability "Xiamen Solex

("ESG Report") publicly released by Xiamen Solex High-tech Companies No. ?? - Sustainability Report (for Trial High-tech Industries Co. Ltd." is referred to as "Solex" the

Industries Co. Ltd. It objectively discloses to stakeholders such Implementation) "Company" or "we" in this report. Unless otherwise specified

as shareholders employees governments clients and · Shanghai Stock Exchange Self-Regulatory Guidelines for Listed other designations are defined as follows:

consumers the efforts and achievements made by Solex in Companies No. ? - Preparation of Sustainability Report

aspects such as safety production environmental protection (Revised in January ????) Term Interpretation

social welfare corporate governance and talent development. · China Enterprise Reform and Development Society Guidelines Solex High-tech Industries

Reporting Scope for Sustainable Development Reports of Chinese Enterprises

Solex Vietnam (Vietnam) Co. Ltd.

(CASS-ESG ?.?)

This report covers Xiamen Solex High-tech Industries Co. Ltd.· Sustainable Development Goals (SDGs) of the United Nations

including its subsidiaries. Unless otherwise specified the scope Zhangzhou Solex Smart Home Co. Ltd.Zhangzhou

· ???? Sustainability Reporting Standards (GRI Standards) of the Zhangzhou Solex Smart Home Co. Ltd.of this report is consistent with that of the Company's annual Solex

Global Reporting Initiative (for reference) Xiamen Branch

report.Reporting Period Solex Health Xiamen Solex Health Technology Co. Ltd.This report covers the period from January ? ???? to Decem- Confirmation and Approval

ber ?? ???? (the "Reporting Period"). To improve the compara- This report was approved by the Company’s Board of Directors on March Bestter Xiamen Bestter Technology Co. Ltd.bility and completeness some sections of this report may be ?? ???? and was subsequently released in conjunction with the Annual Huaying

appropriately referred to previous years or contains Report. The Board pledges to exercise oversight over the contents of this Xiamen Huaying Industrial Co. Ltd.Industrial

forward-looking statements. This report is released on an report ensuring its absence of any false records or misleading representa-

annual basis consistent with the financial year. tions and assuming responsibility for its truthfulness accuracy and Solex Robotics Xiamen Solex Robotics Technology Co. Ltd.Data Explanation completeness. Xiamen Vehicle Design & Services Intelligent

VDS

Data sources used in this report include the Company’s actual Access to this Report Motion System Co. Ltd.operational data publicly available data from government You may access and download the electronic version of this report at the

agencies annual financial data internal statistical reports websites of Xiamen Solex High-tech Industries Co. Ltd. (www.solex.cn) SGS-CSTC Standards Technical Services SGS

third-party questionnaire surveys etc. The financial data in this Shanghai Stock Exchange (www.sse.com.cn) or cninfo (www.cnin- Co. Ltd.report is expressed in RMB. For any discrepancy between this fo.com.cn) to learn more information about the Company.report and the financial statements the financial statements

shall prevail.???? Environmental Social and Governance (ESG) Report Opening section ?

Message from the Chairman

Dear shareholders partners employees and colleagues from all sectors of society

As time advances we remain steadfast and diligent. In ???? amid a complex and ever-changing global People-oriented upholding product responsibility and shared value creation. The Company

economic landscape sustainable development has become a vital pillar supporting enterprises in continuously improves its employee protection and career development systems strengthens

maintaining resilient operations and navigating economic cycles. Amid green transformation and occupational health and safety management and fosters mutual growth between employees and the

industrial upgrading the kitchen and bathroom home furnishings and health hardware industries enterprise. At the product level the Company focuses on innovation in intelligent health-oriented

continue to evolve toward greener smarter and more globalized development. Solex always and green products to drive iterative upgrades of electronic shower systems smart toilets AI beauty

integrates ESG principles throughout its strategy and operations focusing on its two core businesses devices beverage health and intelligent monitoring equipment. In ???? the Company obtained the

of robotics and IDM. Driven by technological innovation and global deployment we balance economic MDSAP certificate which indicates that its product-related manufacturing systems within the defined

returns with social value and diligently respond to the trust and expectations of all stakeholders. scope comply with regulatory requirements in the United States Japan Brazil Australia and Canada.Governance as the foundation ensures steady and sustainable operations. In ???? in alignment with Together with ISO ????? ISO/IEC ????? and ISO/IEC ????? certifications the Company has

regulatory requirements and operational realities the Company optimized its governance structure by established comprehensive safeguards covering quality compliance and data security across the

abolishing the Board of Supervisors transferring its relevant functions to the Audit Committee under entire process. The Company promotes and disseminates ESG principles among supply chain

the Board of Directors and simultaneously revising the Articles of Association and the Rules of partners steadily advancing the development of a responsible supply chain.Procedure of the Strategy and ESG Committee under the Board of Directors thereby refining an ESG Pressing forward without falter the future holds promise. The Company's ESG practices in ????

working mechanism coordinated by the Board guided by committees and executed collaboratively provided a solid foundation for risk resilience and steady growth made possible by the dedication of

by all departments. The Company strictly fulfills its information disclosure obligations ensuring that all employees and the support of stakeholders. As ESG has become a core requirement for high-quality

disclosures are truthful accurate and complete and safeguarding the legitimate rights and interests development the Company will continue to be driven by R&D innovation with domestic operations as

of all shareholders. Through standardized governance practices the Company's ESG performance has its core base while steadily advancing overseas manufacturing and globally compliant operations.been recognized by third-party professional institutions and has consistently maintained an A rating Looking ahead the Company will further enhance its ESG management system focusing on

among mainstream ESG assessments. environmental performance improvement technological innovation global compliance and supply

Advancing toward sustainability through green manufacturing and low-carbon development. The chain collaboration increasing investment in green and intelligent technologies to achieve

Company adheres to compliant efficient and low-carbon production management principles coordinated economic environmental and social benefits.embedding green concepts across the entire value chain from R&D to production and supply chain At this new starting point Solex will remain committed to its industrial roots strengthen its core

management. In ???? the Company and its subsidiary Zhangzhou Solex was certified with ISO competencies in innovation design and intelligent manufacturing and advance sustainable

?????:???? Energy Management System continuously enhancing energy management and resource development with a long-term perspective. The Company will continue to enhance its core

utilization efficiency; the smooth construction and commissioning of the Vietnam overseas competitiveness expand into global markets deliver stable returns to shareholders provide growth

manufacturing base have incorporated green manufacturing standards fulfilling environmental platforms for employees create long-term value for society and join hands with all stakeholders to

responsibilities within the Company's global expansion. The Company continues to optimize the use build a green and inclusive industrial future.of energy and water resources strictly control pollutant emissions and promote circular economy We sincerely thank friends from all sectors for your enduring trust support and partnership.initiatives and process upgrades. These efforts contribute to achieving carbon peaking and carbon Chairman of Xiamen Solex High-tech Industries Co. Ltd.neutrality goals as well as sustainable development.March ?? ???????? Environmental Social and Governance (ESG) Report Opening section ?

Sustainable Development Highlights in ????

Economic Performance Governance Performance

Total Assets: ???，???.?? (in RMB ?????);???，???.?? General Meeting of Shareholders Convened: ? times;Operating Income: (in RMB ?????);??，???.?? Meetings of the Board of Directors Convened: ?? times;Total Profit: (in RMB ?????);?，???.?? Percentage of Female Directors in the Board of Directors: ??.??%；Total Tax Payment: (in RMB ?????);Percentage of Independent Directors in the Board of Directors: ??.??%；

Basic Earnings per Share: RMB ?.?? per share;??，???.?? Reply rate to investors' inquiries at SSE E-Interactive Platform: ???%.Net Profit Attributable to Shareholders of the Listed Company: (in RMB ?????).Environmental Performance Social Performance

PV Generation: ???????.?? kWh; Total number of employees: ????； Employee Satisfaction: ??.??%；

Greenhouse Gas Emission Intensity: ?.?? tCO?e/RMB ????? revenue; Investment in R&D: ?????.?? (in RMB ?????); Product Percent of Pass: ??.??%；

Total Water Consumption: ?????? tons;

Total Investment in Data Security:??? (in RMB ?????)；

Water Consumption Intensity: ?.?? tons/RMB ????? revenue;

Total Investment in Safety Production: ???.?? (in RMB ?????);

Total Energy Consumption: ?????.?? tce;

Total Public Welfare Input: ?.?? (in RMB ?????).Energy Consumption Intensity: ?.?? tce/RMB ????? revenue.

(For detailed information on the Company's economic performance please refer to Solex's ???? Annual Report.)???? Environmental Social and Governance (ESG) Report About Solex ?

About Solex

Company Profile The robotics business is a strategic business line of the The Company's IDM business based on the IDM (Innova- The Company is among the few domestic enterprises to

Company. Under its proprietary brand "Solex Robotics" it tion Design Manufacturing) model primarily serves have received all eight "national-level" honors: "High-tech

expands domestic and overseas markets and builds two overseas markets and leading international brand Enterprise" "National Intellectual Property Demonstration

core collaborative organizational systems: A logistics customers and is divided into two major segments: The Enterprise" "National Enterprise Technology Center"

service robot system tailored for industrial parks medical healthcare software and hardware as the second growth "Service-Oriented Manufacturing Demonstration

and elderly care institutions and other scenarios which engine focuses on diversified scenarios including sleep Enterprise" "National Green Factory" "National Industrial

provides integrated solutions such as inspection and (e.g. AI smart pillows smart mattresses) skin and hair Design Center" "Postdoctoral Research Station" "Solex

security in-park logistics cleaning and reception; and a (e.g. AI beauty devices hair removal devices hair growth Famous Trademark". In addition the innovative products

medical and elderly care service robot system focused on devices) oral care (e.g. AI health-monitoring oral designed by the Company's design team have won over

healthcare elderly care and aesthetic medical institu- irrigators electric toothbrushes) sports rehabilitation and ??? domestic and international design awards including

tions which offers personalized solutions including body shaping (e.g. intimate care devices) AI companion- top global industrial design awards such as the Red Dot

Xiamen Solex (??????.SH) was established in ????. The

mobility assistance nursing and rehabilitation and health ship (e.g. AI companion cats) and beverage health (e.g. Award (Germany) iF Design Award (Germany) IDEA Award

Company's businesses cover branded organizational

monitoring. soda makers); intelligent kitchen and bathroom solutions (United States) and Good Design Award (Japan). To date

systems for service robots and consumer intelligent

constitute the Company's foundational business with the Company holds more than ???? valid authorized

hardware IDM operations aiming to provide innovative

core categories including shower systems kitchen faucets patents domestically and internationally including over

solutions to global customers.smart toilets and intelligent beverage systems consoli- ??? invention patents and nearly ??? utility model patents

dating the Company's business fundamentals. demonstrating its outstanding strength in innovation.???? Environmental Social and Governance (ESG) Report About Solex ?

Corporate Culture Shareholding Structure Chart

Xiamen Solex High-tech Industries Co. Ltd.Vision Mission Cultural Values

Xiamen Solex Robotics Technology Co. Ltd.? Xiamen Vehicle Design & Services Intelligent Motion System Co. Ltd.The preferred IDM To create maximum Advocating science and

partner for leading global value in product R&D mutual support. Xiamen Solex Health Technology Co. Ltd.brand customers. design and manufactur-

Solex IDM Division ing for leading global

brand customers. Xiamen Bestter Technology Co. Ltd.? Minke (Xiamen) Industrial Research Institute Co. Ltd.? Beijing Xiaojingxi Technology Co. Ltd.? Fujian Beilang Jiayuan Smart Home Co. Ltd.? Xiamen Huaying Industrial Co. Ltd.Vision Mission Cultural Values

Zhangzhou Solex Smart Home Co. Ltd.? Zhangzhou Solex Smart Home Co. Ltd. Xiamen Branch

We are committed to We strive to fully liberate Advocating science and

becoming a globally global enterprise clients mutual support.leading B?B service from service-oriented Solex (Hong Kong) Co. Ltd.Solex Robotics Division robot organizational tasks in logistics ? SOLEX ITALY SPA

system brand. customer service

medical care and health

and wellness. Solex High-tech Industries (Vietnam) Co. Ltd.???? Environmental Social and Governance (ESG) Report About Solex ?

Business Operations

「Foundational business steadily upgrading」 「Second growth engine technological breakthroughs」 「Strategic new core inaugural year ????」

Intelligent Kitchen and Bathroom Healthcare Software and Hardware Robot Organizational System

「Product」 「Product」 「Product」

Continuously iterating core technologies such as intelligent water Focusing on scenarios such as sleep skin hair oral care sports The organizational system for logistics service robots and the organi-

saving precise temperature control and intelligent sensing and rehabilitation and body shaping AI companionship and beverage zational system for medical and elderly care service robots.empowering products including faucets shower systems and smart health leveraging core patents in AI recognition precise regulation

toilets with patented technologies such as bubble concentration and intelligent monitoring to complete full-category product

「Latest Developments」

detection negative pressure water shut-off and multi-sensor iterations and functional upgrades for smart anti-snoring pillows In February ???? the Company established its wholly owned

pelvic floor rehabilitation devices portable hair removal devices subsidiary Solex Robotics; in March ???? Solex Robotics acquired linkage optimizing water-saving efficiency and user experience

and more. Xiamen VDS rapidly strengthening capabilities in mobile chassis

expanding intelligent and health-oriented kitchen and bathroom

solutions and meeting the needs of high-end overseas brands. 「Latest Developments」

and motion control teams; in November ???? Solex Health Park was

officially renamed Solex Robotics Park establishing an integrated

Certified with ISO/IEC ????? and ????? information security

「Latest Developments」 robotics base that includes R&D buildings exhibition halls testing obtained MDSAP international medical device quality system facilities and planned production areas; in November ???? the

The Vietnam base has commenced operations to undertake overseas certification across five countries and advanced the expansion of Solex Robotics Research Institute was officially inaugurated; in

orders mitigated tariff barriers and ensured global supply chain ISO ????? medical device quality management system certification December ???? Version ?.? of the Solex Robotics showroom official-

stability; deepened IDM cooperation focused on international at the Vietnam park jointly initiated the Xiamen "Open Competition ly opened.high-end customers and consolidated its position as a core supplier. for the Best" smart health home application large model project with

universities; the Company continues to cultivate overseas high-end

B-end markets through patent-driven technology scenario-based

products and ecosystem collaboration strengthening global

compliance capabilities and core competitiveness.???? Environmental Social and Governance (ESG) Report About Solex ?

Industry Layout Brand Development

Building upon its solid foundation in "Health Hardware IDM" Solex is driving a pivotal

leap in its brand strategy entering a new era of proprietary robotics branding. Powered

by technological innovation the Company deeply integrates its core manufacturing

capabilities with cutting-edge technologies such as intelligent sensing and mechatron-

ics actively positions itself within the robotics industry ecosystem and advances from

a product manufacturer to a leader in intelligent solutions elevating brand value and

opening a new chapter in empowering global households and industries with intelli-

Global Market Layout Overseas Market Layout gent upgrades.Deploying in the robotics field expanding Covering ??+ countries/regions with the

business end scenarios such as rehabilitation Vietnam base commencing production in ????

and elderly care institutions and industrial focusing on manufacturing to address trade

parks with robotics business orders expected barriers.to be converted and implemented.Building the "Solex Robotics" Brand

Domestic Production Capacity Layout Overseas Production Capacity Layout

"Solex Robotics" is the core brand of the Company's strategic business line delivering

professional service robot collaborative organizational systems to domestic and

Vietnam Solex production base dedicated to overseas enterprise clients. Leveraging manufacturing strength accumulated AI

Xiamen Park + Zhangzhou Smart Home Park large-scale manufacturing to support interna- algorithms and global production capacity layout the brand builds competitive

focusing on R&D and high-end manufacturing. tional business expansion. advantages through differentiated strategies. Focusing on the two core scenarios of

logistics services and medical and elderly care services the brand has developed

product series covering diversified functional modules: For logistics service scenarios

targeting industrial parks medical and elderly care institutions and various enterpris-

es it provides automated solutions such as inspection and security in-park logistics

indoor and outdoor cleaning and guided reception; for medical and elderly care

scenarios focusing on healthcare institutions aesthetic medical institutions and

beauty institutions it offers intelligent services including mobility assistance nursing

and rehabilitation and health monitoring helping global clients achieve scenario

upgrades and efficiency improvements.???? Environmental Social and Governance (ESG) Report About Solex ??

Milestones in ???? March June

Solex Robotics completed the May Solex was honored as a

February Julyacquisition of VDS. Solex participated in the ??th "Benchmark Enterprise for

Kitchen & Bath China in Shang- Fair Competition Compli- Solex received the China Patent OctoberSolex Robotics was established

hai. ance Management System Excellence Award for its patent A celebratory event for the as a step to deploy the strategic

Development" and received "A Multifunctional Shower- Vietnam production base was business line of robotics. Under

head." held in Quang Ninh Province

its proprietary brand it targets the nation's first Fair Compe-

Vietnam.both domestic and overseas tition Compliance Manage-

ToB markets building two ment System Certification.collaborative organizational April Solex participated in the ??th

systems for logistics and December

Solex's Aurora photocatalyst China Beauty Expo in Shanghai.medical/elderly care service September The Solex Robotics toothbrush and Nimble

robots. showroom officially

side-spray lifting bar won the The Vietnam production base Solex received the "???? Best

November

???? German iF Design Practice Case of Internal The Solex Robotics Research

opened.successfully achieved its first

Award. Institute was officially inaugu-shipment. Control of Listed Companies"

from the China Association for rated.SGS awarded ISO/IEC ????? Public Companies.January Information Security Manage- Solex initiated the

The Solex ???? Strategic ment System Certification and "Open Competition

Management Summit discussed ISO/IEC ????? Privacy Informa- for the Best" project

tion Management System Zhangzhou Solex was awarded the Company's overall strategy Solex participated in Cosmo- to tackle key technol-

Certification. the provincial title of "Green the strategic positioning and prof Asia in Hong Kong. ogies for a smart

Supply Chain Management

development plan of Solex health application

Enterprise."

Vietnam outlining a clear large model.blueprint for its future.???? Environmental Social and Governance (ESG) Report About Solex ??

Major Honors in ???? ????年度厦门市重点工业企业名单

Recipient Awards Awarding Authority

National Development and Reform Commission Ministry of Finance

Solex National Enterprise Technology Center General Administration of CustomsMinistry of Science and Technology

State Taxation Administration

Solex ???? Key Industrial Enterprise of Xiamen Xiamen Municipal Bureau of Industry and Information Technology

Bestter ???? Key Industrial Enterprise of Xiamen Xiamen Municipal Bureau of Industry and Information Technology

???? Top ??? Strategic Emerging Industry Provincial Enterprise Confederation Provincial Radio and Television

Solex Enterprises in Fujian (Ranked ??st) Provincial Academy of Social Sciences Fujian Daily etc.Top ??? Private Manufacturing

Solex Fujian Federation of Commerce & IndustryEnterprises in Fujian Province (Ranked ??rd)

Top ??? Innovative Private Enterprises in

Solex Fujian Federation of Commerce & IndustryFujian (Ranked ??th)

Solex ???? Top ??? Xiamen Enterprises (Ranked ??nd) Xiamen Enterprise Confederation Xiamen Radio and Television Xiamen Daily etc.Solex ???? Top ?? Xiamen Green Enterprises (Ranked ??th) Xiamen Enterprise Confederation Xiamen Radio and Television Xiamen Daily etc.???? Top ?? Xiamen Enterprises in

Solex Xiamen Enterprise Confederation Xiamen Radio and Television Xiamen Daily etc.Intellectual Property (Ranked ?th)

Top ?? Xiamen Private Technology Innovation

Solex Xiamen Federation of Industry and CommerceEnterprises (Ranked ??th)

Top ?? Xiamen Private Manufacturing Enterprises

Solex Xiamen Federation of Industry and Commerce(Ranked ??st)

Solex Top ??? Xiamen Private Enterprises (Ranked ??th) Xiamen Federation of Industry and Commerce

Zhangzhou "Future Unicorn" Innovative Enterprise Fujian Provincial Bureau of Data Management

Solex

???? Haicang District Talent Attraction and

Solex Leading Group for Talent Work of the CPC Haicang District Committee

Cultivation Contribution Award

Zhangzhou ???? Fujian Provincial Green Supply Chain

Fujian Provincial Department of Industry and Information Technology

Solex Management Enterprise

Zhangzhou Fujian Provincial Enterprise Technology Center Fujian Provincial Department of Industry and Information Technology

Solex

Xiamen Municipal Bureau of Science and Technology

Bestter High-tech Enterprise Xiamen Municipal Bureau of Finance Xiamen Taxation Service of the

State Taxation Administration???? Environmental Social and Governance (ESG) Report Responsibility Focus-Special Topics ??

Responsibility Focus-Special Topics Case Study: Taikang Community and Wuxin Elderly Care Visit Solex

Deepening Industry Focus and Strengthening Strategic Layout In August ???? the chairman of Wuxin Elderly Care and the general manager of the

Integrating into the Industry for Shared Development Operations Support Department of Taikang Community led delegations to Solex for

inspection and exchange. During the visit the parties conducted in-depth discus-

The Company has keenly seized development opportunities in the robotics sector steadi- sions on the practical deployment of elderly-care robotics with the Company engag-

ly advancing industrial layout leveraging enterprise?university?research institute collab- ing in dedicated and detailed consultations on robotic solutions tailored to Taikang

oration as a technological bridge to promote technological innovation and knowledge Community's operational scenarios and needs. This exchange laid a solid foundation

integration. At the same time through deep participation in industry exhibitions and for synergistic cooperation between the parties in the field of elderly-care robotics.technical exchanges the Company continues to expand brand influence and actively build Solex's robust capabilities in AI and robotics precisely complement Taikang Commu- R&D—industrial deployment—service

a collaborative and mutually beneficial industrial ecosystem. nity's nationwide healthcare and elderly-care community network and Wuxin Elderly operations" in the elderly-care sector

Care's experience in operating elderly-care institutions. This engagement not only injecting strong momentum into the

achieved precise alignment between technological supply and scenario demand but commercialization　of　elderly-care

Deepening the Robotics Sector and also marked the further implementation of an integrated model of "technology robotics in China.Consolidating Industrial Layout

The global technology industry is flourishing with new technologies and

application scenarios continuously emerging bringing new opportunities

for enterprise development. As an innovation-driven enterprise Solex has Case Study: Strategic Cooperation Reached with Wuxin Elderly Care and Huaqiao University College of Engineering

firmly seized industry opportunities actively deployed in the field of

artificial intelligence established a professional AI algorithm team and In August ???? Solex Robotics entered into a strategic cooperation memorandum with

attached great importance to the development of the robotics industry. The Fujian Wuxin Elderly Care Services Co. Ltd. ("Wuxin Elderly Care") and the College of

Company relies on its subsidiary Solex Robotics to pioneer new business Engineering of Huaqiao University ("HQU Engineering"). The three parties will focus on

tracks and is actively building integrated industrial chain service capabilities the specific needs of elderly-care scenarios integrating Solex Robotics' R&D and

encompassing robotics technology research and development manufactur- manufacturing strengths Wuxin Elderly Care's application scenarios and service

ing and market sales steadily deepening its strategic layout in the robotics experience and HQU Engineering's research capabilities and talent resources to jointly

sector. explore elderly-care robotics solutions and conduct collaborative R&D design optimi-

At present the Company is prioritizing the R&D of collaborative organiza- zation and supply chain development. Going forward all parties will continue to

tional systems for healthcare and elderly-care service robots as well as advance project innovation and iteration deepen collaboration in policy initiatives and

logistics service robots continuously advancing the deployment of robotic research project applications and actively explore long-term development opportuni-

teams that address customer pain points and consolidating its core techno- ties in the elderly-care robotics field.logical competitiveness. During the Reporting Period Solex Robotics

successfully completed the acquisition of VDS and finalized all requisite

industrial and commercial registration changes.???? Environmental Social and Governance (ESG) Report Responsibility Focus-Special Topics ??

Strengthening Industry Engagement and Showcasing at Professional Exhibitions

Upholding the core philosophy of model sharing manufacturing sharing and technology sharing Solex's IDM business focuses on the fields of healthcare software and hardware and intelligent kitchen and bathroom

solutions. With enterprise?university?research institute collaborative innovation as the central engine we have established joint R&D platforms with leading domestic universities and top-tier hospitals to overcome

key technical challenges and accelerate the commercialization of research outcomes. At the same time we concentrate on the R&D design and manufacturing of intelligent products and leveraging platforms such

as beauty expos and kitchen and bathroom exhibitions collaborate closely with industry partners to integrate hardware innovation with health insights delivering safer more convenient and smarter healthy living

experiences for consumers.Case Study: With Dedicated Craftsmanship in Beauty Tech Solid Capabilities Shine in Asia-Pacific Case Study: Gathering New Kitchen and

Bathroom Trends in Shanghai

From November ?? to ?? ???? the Cosmoprof Asia was successfully held in Hong Kong where the Company showcased a range of cutting-edge beauty and health

products in skin management and hair management comprehensively presenting its latest R&D achievements. Meanwhile the Company has actively established From May ?? to ?? ???? the ??th Kitchen & Bath China was

in-depth partnerships with renowned domestic universities and top-tier hospitals integrating the strengths of enterprises universities and research institutes and held at the Shanghai New International Expo Centre. Under

medical institutions to jointly tackle key technologies for innovative products and explore new development opportunities in the beauty and health sector. the theme "New Era New Kitchen and Bathroom New

Skin Management Products Experience" the exhibition brought together cutting-edge

industry trends and innovative products. Guided by the

· The flagship beauty device features intelligent emulsion detection enabling adaptive compatibility with emulsions of

philosophy of "intelligence health and sustainability" the

varying viscosities and recommending personalized usage plans based on skin analysis results thereby enhancing

Company focused on real-life scenarios such as beverage

skincare precision and user experience.health intelligent bathroom solutions and kitchen water

· The LED light therapy device incorporates a breathable structure and multiple phototherapy modes to address anti-ag-

usage presenting four themed exhibition zones: beverage

ing needs across different skin types; equipped with intelligent distance measurement it monitors user distance in real

space smart toilet space shower space and faucet space.time to ensure safe and controllable phototherapy delivering a professional-grade at-home beauty experience.In addition the robot Xiaolin made its debut interacted

Hair Management Products with visitors on-site and guided them to explore technologi-

· The hair removal device innovatively integrates AI detection algorithms to accurately identify hair distribution and scar cal highlights and product experiences throughout the

locations within the treatment area effectively preventing scorching caused by residual hair while avoiding secondary exhibition areas.damage to scarred skin thereby enhancing safety and comfort.· The hair-dryer brush integrates efficient drying care and styling functions; its self-cleaning system effectively prevents

dust blockage to ensure long-term stable operation while water-ion technology helps improve dry hair quality achiev-

ing dual moisturizing and hair-care benefits. Combined with rapid styling functionality it enables users to effortlessly

create ideal hairstyles.???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

Sustainable Development Governance

ESG Management Framework

The Company has formulated the Environmental Social and Governance (ESG) Management System and the Rules of Procedure

of the Strategy and ESG Committee under the Board of Directors and established a three-tier management structure comprising

Case Study: ESG Training

Board oversight committee review and working group execution to provide unified leadership decision-making and imple-

mentation of ESG-related work. Meanwhile the Company continues to deepen ESG cultural development and empower all To enhance employees' and management's in-depth

employees fully integrating ESG principles into operational practices systematically enhancing environmental performance understanding of sustainable development concepts and

fulfilling social responsibilities and optimizing corporate governance. strengthen ESG management capabilities the Company

To ensure effective implementation of ESG governance the Company has incorporated ESG-related indicators into key perfor- organized a dedicated ESG training session on December

mance metrics and linked them to remuneration assessments for relevant positions covering dimensions such as innovation ?? ???? which was attended by ?? participants and

and R&D product quality environmental protection and workplace safety thereby reinforcing ESG accountability and support- lasted two hours. The training focused on interpreting the

ing long-term sustainable value creation. latest ESG policy developments frontier trends and

rating systems and analyzed the Company's current ESG

·Review and approve the Company's major ESG matters including material issues management structure and manage-

Board of Directors ment systems; performance and improvement pathways further

·Review the Company's ESG report. strengthening ESG awareness and practical application

among key personnel and effectively enhancing the Com-

·Research the Company's ESG goals strategic planning governance structure and management systems and make pany's ESG management level.recommendations to the Board of Directors;

Strategy and ESG ·Identify ESG risks and opportunities that have a significant impact on the Company's business and guide management in

Committee taking responsive actions;

·Supervise the establishment of ESG goals corresponding implementation plans and performance review the progress

towards achieving ESG goals and propose improvements;

·Review the Company's ESG-related disclosure documents and submit them to the Board of Directors for deliberation.·Implement the Company's ESG strategy and goals coordinate various departments in implementing ESG initiatives;

·Draft ESG policies issues plans and implementation schemes;

ESG Working ·Collect ESG information and prepares reports and related documents;

Group ·Liaise with consulting and rating agencies organize ESG business training and monitor ESG policy developments;

·Summarize ESG work results report progress to the committee in a timely manner and propose improvement suggestions.???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

Information Reporting Mechanism

By regularly publishing ESG reports Solex proactively discloses its performance across environmental social and governance dimensions effectively enhancing investor communication quality and

information transparency. Meanwhile the Company clearly requires each executing unit to assume primary responsibility within its scope of duties implement the daily management of ESG-related

tasks according to the Company's ESG strategy and goals regularly report progress and promptly submit ESG information.ESG Goals

Solex practices sustainable development through concrete actions establishing clear ESG goals to anchor its direction and guide the orderly advancement of ESG initiatives. The Company also fully

endorses and actively implements the United Nations Sustainable Development Goals (SDGs) integrating them into its strategic planning to vigorously advance toward low-carbon manufacturing

shared benefits and high-quality development.Chapters Nurturing the Ecosystem Building a Solid Governance Foundation with Integrity Empowering Industry Attracting Talent

and and Advancing Sustainably

Sections and Diligence and Creating Enduring Value and Building Unity Through Green Development

? Improvement of ESG governance system ? Supporting carbon reduction

? Enhancing governance levels of the General Meeting of initiatives ? Zero employment discrimination incidents

? Increasing investment in R&D

Shareholders Board of Directors and Board of Supervi- ? Active promotion of green office ? Protecting employees' development and

? Zero supply chain safety incidents

sors practices participation rights

? Compliance of products and services

Our Goals ? Reinforcing risk control capabilities ? Improvement of resource utiliza- ? Providing expansive development opportu-

with national standards

? Ensuring timely accurate and complete information tion efficiency nities for employees

? Rising customer satisfaction

disclosure while maintaining strong investor relations ? Enhancing circular economy ? Strict occupational health and safety

? Zero data leakage incidents

? Zero incidents of commercial bribery corruption or practices and reducing unneces- management to foster a safe workplace

unfair competition sary costs???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

The Company continuously enhances its supplier management system by The Company has established an employee mutual aid foundation to provide

standardizing the full-process management of supplier selection evaluation financial assistance to employees in difficulty; offers suitable employment

assessment and exit and incorporates ESG performance indicators into suppli- opportunities to economically disadvantaged laborers; and donates bicycles to

er admission criteria. children in impoverished counties.The Company addresses the dietary health needs of the elderly by donating

The Company adheres to compliant operations continuously improves compli- peanut oil and other supplies to community seniors.ance and risk management systems and conducts regular information disclo-

sure to ensure regulatory compliance and efficient governance. The Company cares for employees' physical and mental well-being by organiz-

ing diverse cultural and sports activities. It also provides comprehensive health

check-ups for all employees and conducts regular safety hazard inspections.Actively responding to the "dual carbon" strategy the Company comprehensive- The Company has built a content-rich digital learning platform and established

ly conducts greenhouse gas inventories vigorously promotes energy-saving a tiered and categorized employee training system empowering employees

awareness and technology application and contributes to carbon neutrality with personalized and autonomous learning opportunities.goals.Our Actions The Company effectively safeguards the legitimate rights and interests of female

employees strictly ensuring gender equality in recruitment compensation and

The Company implements full lifecycle product management and strictly benefits and promotion and fully implementing statutory leave entitlements

controls product quality through digital technologies. such as maternity examination leave in accordance with the law.The Company rigorously manages wastewater discharge conducts real-time

The Company gives back to society through tangible actions by organizing monitoring across all treatment stages and enhances water utilization efficien-

cross-border donations and community elderly-care initiatives to support cy through wastewater recycling and reuse measures.sustainable community development.The Company actively promotes the application of photovoltaic technology

Adhering to core values of diversity equality and inclusion the Company

continuously increasing the proportion of clean energy usage while reducing

ensures no differential treatment based on gender age or other personal

energy waste through equipment upgrades and energy-saving awareness

characteristics in recruitment compensation or career advancement.campaigns thereby advancing green operations.Market demand guides the Company's R&D direction with increased R&D The Company provides employees with market-competitive compensation and

investment to continuously strengthen technological and product innovation diverse benefits and through regular performance evaluations fully unlocks

capabilities. employees' capabilities and potential.???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

Due Diligence ESG Risk Management

Conducting due diligence is of great significance for identify- The Company places high emphasis on ESG risk management. Focusing on key ESG topics such as climate change response inno-

ing preventing mitigating and addressing the Company's vation-driven development product safety and quality responsible supply chains and energy utilization the Company organizes

actual and potential adverse impacts and risks. In accordance top-down risk identification and assessment across departments and formulates scientific mitigation measures based on assess-

with regulatory requirements and industry norms the Com- ment outcomes to ensure effective ESG risk oversight and support stable and sustainable development.pany has established and refined a due diligence mechanism Material Topics Risk Description

fully integrating it into its enterprise risk management system

and proactively identifying sustainability-related risk expo- Response to Frequent extreme weather events may increase operating costs; policy updates may raise compliance costs; green transition

sures. demands significant capital investment; and failure to take effective response measures could result in reputational damage Climate Change and revenue volatility.Innovation- Innovation-driven development faces talent attrition risks that may interrupt R&D projects or cause technology leakage along-

driven side insufficient protection of core process patents that could erode competitive advantages.Background investigations are conducted for new

Product Safety Product safety and quality are subject to multiple risks as quality issues may trigger reputational damage; emerging business hires promotions or transfers to core and sensitive segments may lack maturity; intensified market competition imbalanced production capacity and inventory and suboptimal

positions and promotions of core management and Quality channel customer structures may constrain sustainable product development.personnel; core and sensitive positions are deter- Supply Chain Supply chain policy adjustments may restrict trade and disrupt supply chains; rising material prices may increase procurement

Employees mined in accordance with compliance policies and Management costs; and unreasonable procurement planning may result in inventory shortages or backlogs.investigations are completed prior to hiring or Energy Energy price volatility increasingly stringent regulatory oversight of high-energy-consuming processes and low energy

appointment notices to ensure compliance and Utilization efficiency not only raise operating costs but also hinder compliance with policy requirements.mitigate employment risks.Water Resource Water resource utilization is under increased control pressure due to higher water supply volumes and policy risks arising from

adjustments to water abstraction and usage regulations; production processes may pose water pollution risks and inefficient

Utilization water use may cause resource waste and reputational harm.Prior to cooperation the Company verifies their Occupational Occupational health and safety entail legal compliance risks; inadequate safety management execution may lead to regulatory

credit standing and contract performance capabili- Health penalties; exposure of safety incidents may cause reputational damage; and casualties may directly halt production triggering

Business ty streamlines key due diligence content classifies

and Safety operational disruptions and affecting normal business operations.Partners risk levels based on findings and implements differ-

Talent Retention risks due to high turnover and challenges in retaining talent; skill risks arising from lagging employee skill updates

entiated risk controls. that fail to match technological upgrades; and cross-cultural management risks stemming from ineffective collaboration

Management within multicultural teams and insufficient management adaptability.???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

Materiality Assessment

In accordance with the Shanghai Stock Exchange Self-Regulatory Guidelines for ? Environmental compliance management ?? customer rights protection

Matrix of Material Issues

Listed Companies No. 14 - Sustainability Report (for Trial Implementation) and in ? energy utilization ?? information security and privacy protection

???

consideration of industry dynamics and the Company's operational realities the Response to climate change responsible supply chain????

? ? circular economy ?? equal treatment of SMEs

Company conducted analyses from the perspectives of "impact materiality" and ?? ?? ??

? ?? ? water resource utilization ?? social contribution

"financial materiality" identifying and evaluating ?? key issues of significance to ??? ?? ? ?? ? pollutant emissions ?? rural revitalization

???

the Company and its stakeholders among which five dual materiality issues are ? ???? ? waste disposal ?? shareholder rights protection

?????

addressed as focal points in this report. ?? ???? ? ? Ecosystem and biodiversity protection ?? standardized corporate governance

??

? low-carbon products ?? anti-commercial bribery and anti-corruption

Assessment steps Analysis methods ?? ?? ?? employee rights protection ?? anti-unfair competition

????

? employee training and development tax compliance

U n d e r s t a n d ?? occupational health and safety ?? risk management

· Based on analysis of industry development trends ??

the Company's ?? innovation-driven ?? due diligence

and the Company's business model refer to GRI ?? technology ethics ?? stakeholder communication

b a c k g r o u n d

Step ? SASB and related issues from domestic and interna- Significance in terms of financial impact on the company ?? product safety and quality ?? ESG governance

and conduct

tional peers establish a sustainable development

p r e l i m i n a r y

issue library.issue screening

· Identify the potential or actual impacts of each issue Dual materiality Response to climate product safety and

innovation-driven responsible supply chain energy utilization

on the external environment society and economy in issues change quality

Assess the

the form of questionnaires and expert judgments. Impact materiality Environmental compliance

Step ? materiality of management circular economy water resource utilization pollutant emissions waste disposal

· Identify issues with financial materiality based on the issues

issues Company's risk identification and assessment list and low-carbon products employee rights employee training occupational health protection and development and safety customer rights protection

combined with questionnaire results.information security shareholder rights standardized corporate anti-commercial bribery

and privacy protection protection governance and anti-corruption anti-unfair competition

· Form an issue list based on impact materiality and

tax compliance risk management stakeholder due diligence ESG governance

Identify mate- financial materiality and ensure that the relevant communication

Step ?

rial issues issues are transparently fairly and comprehensively Relevant Ecosystem and biodiversity protection technology ethics equal treatment of SMEs social contribution rural revitalizationissues

disclosed in the report.Significance in terms of economic social

and environmental impact???? Environmental Social and Governance (ESG) Report Sustainable Development Governance ??

Communications with Stakeholders

To ensure smooth communication with stakeholders the Company has established an ESG information communication mechanism and in accordance with international standards such as the GRI Stan-

dards and AA???? Stakeholder Engagement Standard conducts stakeholder identification and engagement. Where necessary it actively solicits stakeholder feedback and recommendations through

interviews forums and surveys to continuously improve performance.Stakeholder Government and Suppliers Investors and Employees Public welfare and Category regulatory agencies and Partners Shareholders Customers community organizations

Demands and ? Compliant Operations ? Win-win cooperation ? Improvement of ? Employee Care ? Product Innovation ? Employment Promotion

Expectations ? Environmental ? Promotion of industri- Corporate Governance ? Diversified training ? Fostering open communica- ? Public Welfare and Charity

protection al development ? Return and growth ? Career Development and Promotion tion channels

? Business ethics and ? Equal reciprocity ? Timely information ? Compensation and benefits ? Ensuring Product Quality

anti-corruption ? Supplier Management disclosure ? Health and Safety

? Protecting the rights and

? Lawful tax payment ? Risk Management ? Performance appraisals

? Protection of Employees’ Rights and interests of customers

Interests

Communication and ? Comply with Laws and ? Transparent procure- ? Optimization of ? Diverse cultural and sports activities ? Increased Investment in R&D ? Provision of Employment

Response Regulations ment governance structure ? Regularly organization of training activities ? Improvement of communi- Opportunities

? Green Manufacturing ? Industry cooperation ? Shareholder dividends ? Improvement of employee career advance- cation efficiency ? Conducting public welfare

? Supervision and and exchange ? Regular public ment mechanisms ? Quality and safety manage- activities

inspection ? Responsible industry announcements

? Enhancement of compensation and benefits ment

? Full Tax Compliance chain ? Improvement of

? Building of a green Internal Control ? Regular health check-ups ? Optimization of service

supply chain ? Improvement of performance appraisals processes

? Employee communication and feedback

mechanisms???? Environmental Social and Governance (ESG) Report

Building a Solid Governance

Foundation with Integrity

and Diligence

Our Philosophy

Solex continuously improves its corporate governance system

upholds compliance as a fundamental principle strengthens risk

management mechanisms proactively expands and facilitates

communication channels with investors ensures the timeliness

accuracy and transparency of information disclosure effectively

safeguards the rights and interests of all shareholders and consol-

idates the foundation for long-term steady operations.Our Actions

Corporate governance

Compliance Operation and Risk Management

Investor Relations Management and

Shareholders’ Rights and Interests

Business Ethics

SDGs???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Corporate Governance General Meeting of Shareholders

Solex has further standardized corporate operations to form a governance structure with clearly defined powers and responsibilities The General Meeting of Shareholders as the Company's highest

and effective checks and balances among the General Meeting of Shareholders the Board of Directors committees and the manage- authority exercises decision-making power over major matters

ment team in strict compliance with the Company Law of the People's Republic of China (the "Company Law") the Securities Law of the in accordance with the law. During the Reporting Period the

People's Republic of China (the "Securities Law") and other applicable laws and regulations as well as internal governance documents convening holding and voting procedures of all General Meet-

such as the Articles of Association. During the Reporting Period in alignment with regulatory requirements and operational realities ings of Shareholders strictly complied with the Articles of Associ-

the Company abolished the Board of Supervisors and transferred its functions and powers to the Audit Committee under the Board ation the Rules of Procedure for General Meetings of Sharehold-

of Directors further clarifying the boundaries of supervisory responsibilities and enhancing the efficiency and professionalism of ers and other relevant regulations. Lawyers were engaged to

governance oversight. witness the legality and compliance of the meetings on-site.There were no instances of major matters being implemented

Organizational Structure without the approval of the General Meeting of Shareholders

nor any cases of implementation prior to deliberation.Meeting of Shareholders

Special Meeting of Independent Directors

Key Performance

Nomination and Remuneration Committee

During the Reporting Period

Board Office Board of Directors

Strategy and ESG Committee A to其ta中l o召f ?开临 G时en股er东al 会Meetin次gs； of Shareholders were held

including ? annual General Meeting of Shareholders and

General Manager Audit Committee ? extraordinary meetings;

Audit Department 通过股东会审议议案 ??项；?? proposals were reviewed and approved;

and ??? attendances of minority shareholders exer-

Administration Center Environmental Management Center Strategic Investment Department Robotics Division Finance Center

cised their voting rights at the meetings.Safety Management Center Equipment Procurement Center IDM Division Human Resources Department Legal Department IT Center???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Board of Directors Board Committees Board of Directors Composition and Diversity

The Board of Directors serves as the Compa- The Board of Directors consists of the Audit The Company places emphasis on Board diversity continuously optimizing its composition by

ny's decision-making body and in strict Committee the Nomination and Remunera- comprehensively considering gender age professional background career experience and

accordance with the Rules of Procedure for tion Committee and the Strategy and ESG industry expertise thereby consolidating the professional foundation for directors' performance

the Board of Directors and other systems Committee. Each committee is accountable of duties and providing robust professional support for business development. Meanwhile in

exercises operational and managerial to the Board of Directors composed of direc- August ???? the Company elected an employee director to represent employee interests and

authority within its scope of powers imple- tors and operates in accordance with the participate in discussions and decision-making on major Board matters further aligning Board

ments resolutions of the General Meeting of Articles of Association and the Rules of Proce- decisions with operational realities and employee development needs. As of the end of the

Shareholders formulates business plans and dure for Board Committees to ensure profes- Reporting Period the Company had a total of ? directors of whom ??.??% were female.investment proposals and ensures scientific sionalism in decision-making mechanisms

decision-making and standardized gover- and effective execution.nance. Composition of the Board of Directors

Key Performance

Key Performance

During the Reporting Period

?

During the Reporting Period ?person ?The Audit Committee convened ? meet- personpersons ? ?

person persons

The Board of Directors held ?? ings and reviewed and approved ? ?

persons By academic ?

pe?r?s%ons By age By gender

?

qualification

meetings with an average atten- proposals; persons

?

dance rate of ???%. The Nomination and Remuneration persons

A total of ?? resolutions were Committee convened ? meetings and Bachelor’s Degree ?? years old or above

reviewed and approved ? proposals; Master’s Degree ?? to ?? years old Malepassed at the meetings of the Doctoral degree or above ?? to ?? years old Female

Under ?? years old

Board of Directors. The Strategy and ESG Committee

convened ? meetings and reviewed and

approved ? proposals.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Board Independence Remuneration Management for Directors

and Senior Management

The Company has formulated the Procedures for the Work of Independent Directors clarifying their duties and authorities to ensure To continuously enhance operating performance and

effective performance; the convener of the Audit Committee is an independent director with an accounting background which strength- management standards and to fully motivate directors

ens professional competence. and senior management the Company formulated the

Remuneration and Assessment System for Directors Super-

Key Performance visors and Officers. In terms of remuneration structure

independent directors receive fixed allowances and do not

participate in performance assessments; non-indepen-

During the Reporting Period， dent directors' remuneration is determined based on theirThe Board of Directors consists of ? members ? of whom are independent directors accounting for ??.??%; actual positions; a performance-linked remuneration

? ? system is adopted for officers with performance bonuses The Company convened special meeting of independent directors at which proposal was reviewed and approved; directly tied to overall Company performance and individ-

Independent directors accounted for ??.??% of the Strategy and ESG Committee; ual assessment results.Independent directors accounted for ??.??% of the Nomination and Remuneration Committee;

Independent directors accounted for ??.??% of the Audit Committee. Metrics ???? ???? ????

Effectiveness Assessments of Board of Directors Total pre-tax

remuneration for

In accordance with the Listing Rules the Measures for the Administration of Independent Directors the Articles of Association and other directors officers and supervisors

institutional documents the Company conducted differentiated evaluations of directors' performance across five dimensions: fulfill- ????.?? ????.?? ????.??during their term

ment of fiduciary duties diligence obligations professional competence independence and ethical standards and compliance in duty of office from the

performance. This strengthened directors' self-discipline and standardized their conduct. During the Reporting Period all directors Company (RMB ?????)

were evaluated as competent. In addition the Board of Directors assessed the independence of independent directors for ???? and ????

and found no circumstances that could affect their independent and objective judgment. Note: The total remuneration statistics for ???? and ???? include supervisors; the

total remuneration statistics for ???? include remuneration for supervisors during

their term of office.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Compliance Operation and Risk Management

The Company always regards integrity and compliant operations as the cornerstone of its survival Various departments of the Company promote compliance culture in different forms formulate

and development thoroughly implementing the compliance policy of "abiding by rules honoring indicators to measure the effectiveness of compliance culture development and through coordi-

commitments operating prudently and pursuing long-term success" improving its compliance nation between the Legal Department and the Human Resources Department conduct irregular

management system identifying and preventing compliance risks optimizing internal control specialized compliance training in conjunction with law-based governance publicity and education

mechanisms paying taxes in full in accordance with the law and ensuring steady and lawful busi- focusing on professional topics such as trade security compliance and customs laws and regula-

ness operations. tions thereby strengthening employees' compliance knowledge and practical capabilities.Compliance Management

To comprehensively advance the law-based governance development and compliance manage- Case Study: Policy Interpretation of Announcement No. ?? of ???? by Six Depart-

ment of the enterprise and enhance lawful and compliant operations the Company has formulat- ments Including the General Administration of Customs

ed the Compliance Management Manual the Compliance Obligation Management System the Com-

To strictly implement the requirements of Announcement No. ?? of

pliance Risk Management System and the Compliance Review and Reporting Management System

???? issued by six departments including the General Administration of

providing system safeguards for compliance management.Customs and to strengthen full-process compliance management of

The Company has established a compliance management system based on the PDCA import and export customs operations the Company organized special-

(Plan-Do-Check-Act) cycle. By analyzing the organizational environment identifying stakeholder ized training for customs officers and heads of relevant import and

requirements and compliance obligations assessing compliance risks planning measures to export departments. The training comprehensively interpreted key

address risks and opportunities and determining and implementing interrelated processes within provisions of the announcement including the scope of goods subject

the compliance management system the Company achieves the intended outcomes of compli- to four categories of measures and specialized account book manage-

ance management. In addition the Company has established a four-tier compliance management ment requirements and in combination with the Company's import

organizational structure of "decision-making?management?execution?supervision" promoting and export practices systematically reviewed compliance procedures

comprehensive and end-to-end compliance coverage. to enhance employees' compliance capabilities and fortify the Compa-

Organizational Structure for Compliance Management ny's customs compliance defenses.Decision-Making Body General Manager Responsible for strategic decision-making and institutional approv-al of the Company's compliance management work Key Performance

Management Body Intellectual Property Center Organizes coordinates and supervises compliance management

work and carries out routine tasks

Implement specific implementation in accordance with unified During the Reporting PeriodThe Company conducted ? legal training sessionstotaing

Executive Bodies Functional Departments internal control requirements

Supervisory Body Internal Control Department Responsible for testing and supervising the operation of the compli-

??? hourswith a total of ?? participants.ance management system???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Risk Management

To accelerate the development of the Company's risk management system and standardize and

strengthen risk management the Company has formulated the Compliance Risk Management Case Study: Special Training on Contract Risk Prevention Measures

System and established a risk management organizational framework directly led by the General

Manager coordinated by the Internal Control Department and fully participated in by all depart-

ments. Through risk identification assessment response early warning and emergency mecha- To effectively avoid various contractual legal risks and safeguard the Company's legiti-

nisms the Company reinforces risk management responsibilities at all stages and forms compli- mate rights and interests in April ???? the Company's Legal Department and a Vietnam-

ance risk assessment reports. Meanwhile the Company conducts company-wide risk manage-； ese advisory law firm conducted special training on contract risk prevention measures. ment culture education and promotion embedding risk prevention concepts into employees' The training focused on compliance control throughout the entire contract lifecycle

mindset and daily work and strengthening awareness and accountability. covering counterparty credit investigations during negotiation and signing prevention of

legal risks in contractual clauses risk screening during performance dispute resolution

Compliance Risk Management Process pathways and closed-loop management during enforcement. Through this training

Risk identification personnel use methods such as questionnaire surveys Delphi participants further strengthened their awareness of contract risk prevention and effec-

Risk method sensitivity analysis and scenario analysis to identify compliance risks and tively enhanced contract management and risk handling capabilities.Identifi- submit them to the Internal Control Department for summary and risk database

cation

establishment.Risk Risk management departments analyze and rate risks based on occurrence probability Key Performance

Assess- and impact degree determine risk levels and submit them to the Internal Control

ment Department for verification.During the Reporting Period

Risk management departments select risk response strategies and plans such as risk

Risk retention avoidance mitigation or transfer for different types of risks and after being

Response the Company provided ? ? sessions of training on internal risksummarized by the Internal Control Department submit them to the Company for

approval.with a total of ??? participants and for a total training duration of ???? hours.Risk Risk management departments continuously monitor the implementation of risk

Monitor- response plans regularly summarize and analyze and continuously improve risk

ing control systems and processes.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Internal Control Financial and Tax Management

To ensure asset security and the authenticity and completeness of financial reports and related information and to improve opera- The Company regards financial management as the core

tional efficiency the Company has formulated the Internal Control Manual the Internal Control System and the Internal Audit System support of operations. By strictly implementing the Financial

further standardizing and optimizing key control requirements across management areas and business processes. The Company's Management Rules and clarifying standards for financial

internal control activities include but are not limited to: Core operational processes such as sales and collections procurement and accounting budget management fund control and cost control

expenses and payments and production management while incorporating the management of holding subsidiaries into key internal across the entire process the Company consolidates the finan-

control areas. By strengthening centralized management and supervisory inspections over subsidiaries the Company achieves cial foundation for sustainable development through standard-

full-level internal control coverage and ensures standardized and effective overall operations. ized and transparent financial management. The Company has

also formulated the Tax Management Measures to st次an，dardizeInternal Control Organizational Structure the entire process of tax related business research accounting

declaration monitoring planning evaluation forecasting and

Board of Directors Responsible for the establishment and effective implementation of internal control reporting. The Company enjoys various tax incentives according

to law including additional deductions for R&D人 e。xpensesFinance Department Responsible for organizing and coordinating the establishment and subsequent maintenance of the internal control system high-tech enterprise tax preferences and tax reductions and

exemptions for employing retired soldiers and key groups.Functional Departments and Subsidiaries Implement specific implementation in accordance with unified internal control requirements

In ???? the Company conducted ? tax-related audits to further

Audit Department Responsible for testing and supervising the operation of the system strengthen the rigor of tax management.The Company's Audit Department under the Audit Committee inspects and supervises the operation of internal controls and forms Key Performance

internal audit reports on identified deficiencies irregularities improvement recommendations and progress in rectification. In addi-

tion the Company engages third-party institutions for conduct independent internal audits every year and issue the Internal Control

Audit Report to enhance objectivity and credibility of the audits. Audit results are integrated with operational optimization and During the Reporting Period

accountability mechanisms to continuously strengthen internal supervision effectiveness. the Company paid a total of

Key Performance ????.??(in RMB ?????) in taxes.During the Reporting Periodthe Company conducted ? audit projects covering ? business divisions Note: The statistical scope is based on the treasury entry period.and identifying ?? areas for improvement with a ???% deficiency rectification rate.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Investor Relations Management and

Key Performance Investor Communication Channels

Shareholders’ Rights and Interests Company announcement

During the Reporting Periodthe Company disclosed General Meeting of Shareholders

Solex attaches great importance to investor relations manage- Company website WeChat official account

ment and shareholder rights protection strictly complying with ? regular reports and ?? interim reports Investor hotline email fax

laws regulations and regulatory requirements responding to Regular open investor forums performance briefings

market concerns in a timely and accurate manner eliminating with a total of ??? disclosed documents Shanghai Stock Exchange E-interactive platform

information barriers helping investors gain a comprehensive Reception of various institutional research activities

understanding of the Company's value and enhancing investor published online; Media interviews and reports

recognition.There were no penalties imposed for violations

Key Performance

Information Disclosure related to information disclosure.Solex strictly fulfills its information disclosure obligations and During the Reporting Period

in accordance with the Measures for the Administration of Infor- Investor relations management the Company conducted ??? investor

mation Disclosure by Listed Companies has formulated the Infor-

mation Disclosure Management System which clarifies that the To strengthen effective communication with investors and reception activities

Board of Directors uniformly leads and manages information protect the legitimate rights and interests of minority investors including ?? on-site research receptions

disclosure with the Board Secretary responsible for execution. the Company has formulated the Investor Relations Manage-

To ensure compliance and fairness in information disclosure ment System and designated the Board Secretary as the person with ??? attendances;

the Company strictly regulates insider information manage- in charge of investor relations management responsible for

ment stipulating that before lawful disclosure insiders and organizing and coordinating related work. To enhance investor The Company responded to ?? investor inquiries

entities that illegally obtain insider information shall not relations management the Company has established an inves-

disclose or use such information for insider trading and prohib- on the SSE E-Interactive Platformtor relations section on its official website to timely release and

iting any organization or individual from illegally obtaining update relevant information collect and respond to investors' with a ???% reply rate;

undisclosed information by any means. inquiries complaints and suggestions continuously optimize

communication channels and effectively safeguard investors' Received ??? investor calls;

right to know.Held ? open investor forums.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Capital Market Public Opinion Management

The Company has formulated the Public Opinion Management System and established a leading group to address public opinion matters and manage media information. By closely monitoring key public

opinion trends promptly collecting analyzing and verifying information with significant impact establishing rapid response and emergency handling mechanisms and leveraging online interaction

advantages to guide public opinion appropriately the Company effectively prevents adverse impacts of public opinion on its stock price reputation and normal operations safeguarding its brand image

and market standing.Returns to Shareholders

The Company highly values reasonable returns to investors. While balancing capital needs and sustainable development it strictly follows the profit distribution policy stipulated in the Articles of Associ-

ation and formulated the Shareholder Dividend Return Plan (2025–2027) clearly prioritizing cash dividends to provide sustained and stable returns to shareholders. Meanwhile to safeguard the legiti-

mate rights and interests of the Company and all shareholders and prevent fund occupation risks the Company has formulated the Management System for Preventing the Occupation of Company Funds

by Controlling Shareholders and Related Parties establishing a long-term mechanism to ensure fund security and standardized operations.Unit ???? Mid-???? ????

Cash Dividend per Share yuan/share ?.?? ?.?? ?.??

Total Cash Distribution (Including Tax) In RMB ????? ?????.?? ?????.?? ??，???.??Proportion to Net Profit Attributable to Shareholders of % ??.?? ??.?? ??.??

the Listed Company in Consolidated Financial Statements

Note: The cash dividend proposal for ???? is calculated based on the Company’s total issued share capital as of March ?? ????.Protection of Creditors’ Rights and Interests

While pursuing steady development the Company attaches great importance to the protection of creditors' rights and interests. During the Reporting Period the Company maintained sound solvency

strictly fulfilled the agreements and commitments in bond prospectuses repaid principal and interest on time and in full and experienced no defaults or delayed payments effectively safeguarding cred-

itors' legitimate rights and interests. In ???? the Company's issuer credit rating and "Solex Convertible Bonds" remained at AA with a stable outlook demonstrating strong recognition by the capital

market of its operational strength solvency and development prospects.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Business Ethics Anti-corruption Measures

The Company strictly complies with the Anti-Unfair Competition Law of the People's Republic of China and

the Interim Provisions on Prohibiting Commercial Bribery and other laws and regulations adopts a zero-toler- Employees are prohibited from using the convenience of position to illegally take com-

ance attitude toward corruption and commercial bribery continuously strengthens business ethics and pany assets for personal use through methods such as embezzlement theft or fraud.strives to create a clean and upright business environment.Employees are prohibited from soliciting or accepting money or other forms of benefits

Anti-Corruption and Anti-Bribery from others during business interactions or while performing their duties or from offe-

ring bribes to others.Adhering to integrity and honest operations the Company has formulated the Integrity and Self-Discipline

Management System and requires all employees to establish correct professional ethics and eliminate illegal Employees are prohibited from exceeding their authority during the performance of th-

eir duties and must act in accordance with Company rules and procedures; handling

and disciplinary violations at the source. The Company has established a Discipline Inspection Committee as matters beyond their authorities or improperly exercising their power to harm the int-

a supervisory body to oversee and investigate employee misconduct. By strengthening institutional erests of the Company or others is strictly forbidden.constraints signing integrity agreements and reinforcing ideological education the Company prevents

corruption risks and safeguards the legitimate rights and interests of shareholders customers and partners. Employees are prohibited from privately using company resources for personal or others'benefit causing losses to the Company's interests.Organizational Structure

The committee consists of representatives from the labor union human resources department Key Performance

Discipline Inspection administration department internal audit department and department heads. It has the authori-

Committee ty to formulate the Integrity and Self-Discipline Management System and supervise investigate and handle violations of the integrity and self-discipline requirements.During the Reporting Period

Conduct comprehensive promotion and strict supervision of integrity and self-discipline culture

Department heads for department employees and report any violations of integrity and self-discipline requirements

to the Discipline Inspection Committee promptly. ???? individuals signed integrity agreements and related business

conduct documents

All employees of Comply with discipline accept supervision and cooperate fully with the work of the Discipline with an integrity commitment letter signing rate of ??.??%.the Company Inspection Committee.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Anti-monopoly and Anti-unfair Competition

To strengthen and enhance the Company's antitrust compliance Case Study: Special Training on the Establishment of

management in its business operations the Company has the Fair Competition Compliance Management System

formulated the Anti-Monopoly and Anti-Unfair Competition

In response to relevant national policies and the requirements of the

Management System under which the compliance officer is

???? "Fair Competition Policy into Enterprises" special campaign in

responsible for establishing and improving the internal control

March ???? the Company conducted special training for internal

system for the prevention of monopoly and unfair competition

auditors on the establishment of the fair competition compliance

incorporating antitrust and anti-unfair competition manage-

management system. The training focused on key compliance points

ment requirements into performance evaluations and continu- Fair Competition Management System Certification

related to antitrust and anti-unfair competition with emphasis on

ously enhancing employees' compliance awareness through

the fundamental overview of fair competition compliance in-depth

compliance training. In conducting overseas business the Com-

Anti-monopoly and Anti-unfair Competition Measures interpretation of relevant policies and standard documents and pany strictly complies with the antitrust laws and regulations of

detailed introduction of the framework and implementation

the countries or regions in which it operates eliminates all forms The Company is prohibited from reaching or imple-

pathway of the fair competition compliance management system

of unfair competition including abuse of market dominance menting monopoly agreements or other similar collu-

thereby assisting internal auditors in clarifying compliance boundar-

and unlawful implementation of business concentrations and is sive behaviors in business interactions with competi-

ies in business operations and enhancing their risk identification

committed to maintaining a fair and orderly market competition tors industry associations or upstream and down-

capabilities.environment. stream business partners.The Company is prohibited from abusing its market

In ???? the Company obtained the nation's first Fair Competi- dominance to manipulate the services quantities or

tion Compliance Management System Certification Certificate other trading conditions of goods.for business operators. During the Reporting Period no lawsuits

or major administrative penalties resulted from the Company's The Company will proactively report any concentration

unfair competition practices. of undertakings that meets the reporting standards to

the enforcement agencies for anti-monopoly review.The Company is prohibited from engaging in or partici-

pating in behaviors that disrupt market competition

order and harm the legitimate rights and interests of

other operators or consumers.???? Environmental Social and Governance (ESG) Report Building a Solid Governance Foundation with Integrity and Diligence ??

Whistleblowing Channels and Protection of Whistleblowers

The Company encourages all employees to actively participate in supervision and to report individu-

als or conduct that harm the Company's interests violate laws and regulations involve corruption or

otherwise breach business ethics. It has formulated the Reporting and Investigation Management

System and the Internal Management Whistleblowing System to standardize the handling procedures

for reported matters promptly verify and address received reporting leads and hold people

concerned accountable. The Company has established reporting and complaint platforms including

hotlines and email addresses accepting次 b，oth real-name and anonymous reports and complaintsstrictly safeguarding the confidentiality of whistleblowers' information and prohibiting any form of

retaliation. The Company has established a whistleblower incentive mechanism under which report-

ed matters are comprehensively evaluated based on their nature severity and losses recovered and

monetary rewards are granted to whistl人eb。lowers to stimulate proactive supervision.Reporting Channels

Email report@solex.cn

Telephone or SMS ???????????

Offline channels Reporting Mailbox

Special Circumstances Rep orts involving to the Office of the

senior executives shall Group President

be submitted directly???? Environmental Social and Governance (ESG) Report

Nurturing the Ecosystem and

Advancing Sustainably Through

Green Development

Our Philosophy

Solex proactively addresses the challenges posed by

climate change strengthens pollutant discharge

control vigorously develops clean energy enhances

resource utilization efficiency through energy-saving

transformation and accelerates the research and

development of green and energy-efficient products

thereby contributing to harmonious coexistence

between humanity and nature.Our Actions

Response to Climate Change

Environmental Compliance Management

Resource Utilization

Pollutant Emissions

Implementation of Green Operation

Protection of Ecosystem and Biodiversity

SDGs???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Response to Climate Change

Governance

In the face of the tests and challenges brought by climate change the Company actively responds to the national "Dual Carbon" strategic deployment identifies climate change response as a financial

materiality issue formulates the Greenhouse Gas Inventory Procedure establishes a greenhouse gas inventory task force standardizes organizational boundaries and emission data inventory processes

and ensures that the greenhouse gas emission inventory system is systematic compliant and verifiable thereby advancing green transformation and sustainable development through concrete actions.· Approve the Company's GHG policy emission reduction targets and policy statements;

Management Representative · Lead the GHG management review meetings and listen to reports from the Energy Department on GHG project progress and implementation;

· Ensure the provision of necessary resources required for GHG projects.· The department head is the primary responsible person for GHG management;

· Formulate GHG management policies emission reduction targets implementation plans and policy statements;

· Coordinate the operation and maintenance of the ISO????? system and organize the setting of organizational boundaries and identification of GHG emission sources;

Responsibilities Energy Department

· Regularly report the progress of the GHG project to the management representative and take the lead in preparing the GHG inventory and GHG emission report;

of GHG Inventory

· Oversee and plan GHG work in the plant coordinate relevant departments in implementing related tasks and serve as the main contact point;

Management

Organization · Organize internal verification prior to the formal finalization of the emission report.· Assist various departments in formulating GHG emission reduction targets and track the progress and effectiveness of target implementation;

GHG Inventory Team Leader

· Take the lead in organizing the annual GHG emission inventory and prepare and publish the GHG emission inventory and report.· Cover all functional departments and consolidate data related to various operational activities;

GHG Inventory Team Member · Identify GHG emission sources within each department and submit raw data records;

· Promote the implementation of GHG emission reduction measures within each department and supervise the achievement progress of emission reduction targets.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Strategy

Focusing on core operational segments such as production and market expansion the Company identifies potential risks arising from climate change and opportunities for green development

advances risk assessment and graded control and formulates targeted response plans to support steady development in the low-carbon transition.Probability Priority Ranking4

Risk Type Risk Description of Occurrence Impact Magnitude1 Impact Time2 Value Chainframe3 Links of Impact Potential Financial Impact Response Measures

Physical Acute Risks ?. The Company's operating locations are Low High Short to Upstream Medium Increased ?. Establish an extreme weather early

vulnerable to extreme weather events such as warning mechanism formulate emergency

Risks floods and typhoons which may damage medium operations operating costs response plans reinforce facilities in coastal

facilities operations and supply chains operating locations stockpile emergency

esulting in business interruptions or term downstream supplies and develop business continuity

increased costs plans

?. Activate self-owned steam turbines

?. Sudden climate disasters may cause water formulate backup emergency measures and

and power outages affecting production conduct regular emergency drills

Chronic Risks ?. The Company's major operating locations Low Medium Long-term Operations Medium Increased Assess the impact of sea level rise on operat-

are primarily situated in coastal areas posing ing locations and adjust site selection accord-

potential risks from sea level rise downstr operating costs ingly; comprehensively adopt high-efficiency

?. Under the trend of global warming the energy-saving equipment optimize produc-

Company's cooling energy consumption has tion processes to reduce cooling demand

increased significantly and high tempera- promote clean and green production and

tures adversely affect employee safety and conserve energy while reducing consump-

health tion

Trans- Policy and The introduction of new carbon emission Medium Medium Medium and Operations Medium Increased Track updates to environmental protection management and environmental policies by energy and carbon emission regulations

formational Regulatory Risks the government and increasingly stringent long-term compliance costs. establish compliance review mechanisms regulatory requirements may increase the and proactively deploy green technologies

risks Company's compliance costs

Technological The introduction of new fields new Medium High Short to Operations Medium Increased R&D Establish special R&D funds collaborate with

equipment and new processes entails risks research institutions to carry out low-carbon

risks such as long investment cycles failure to medium term downstream expenditure technology pilots; establish control

meet market trends and returns falling short procedures for new product development

of expectations conduct market research and strictly

manage the introduction process of new

products and processes

Market Risks Customers favor energy-saving and low-car- Medium High Short to Downstream Medium Decreased Conduct market research strengthen

bon products; if the Company's products fail communication with customers and prompt-

to meet customer requirements it may result medium term operating income ly collect customer needs and expectations

in customer loss and reduced operating regarding energy management; organize

revenue reviews of customer requirements to ensure

? Low: If the risk occurs it will have little to no noticeable impact on the enterprise’s finances reputation or operations and losses can be easily absorbed. ? High: The risk could lead to significant financial loss business disruption or severe legal consequences requiring immediate action.Medium: If the risk occurs it will cause some negative impact on the enterprise's finances and reputation and measures may be needed to mitigate the losses. Medium: The risk has some impact on the business but can be addressed or mitigated within a reasonable timeframe.High: If the risk occurs it will cause severe financial loss to the enterprise damage to the brand and may even affect business continuity and significant resources may be needed to recover. Low: The risk has relatively minor impact on the business and can be handled in routine operational management.? Short-term: Generally refers to within ? year after the end of the Company’s sustainability reporting period (including ? year).Medium-term: Generally refers to ? to ? years after the end of the Company’s sustainability reporting period (including ? years).Long-term: Generally refers to more than ? years after the end of the Company’s sustainability reporting period.? Upstream: Involves raw material suppliers procurement and logistics affecting the stability of the supply chain and raw material costs.Operations: Involves production manufacturing and internal processes affecting daily operations and production efficiency.Downstream: Involves distribution sales and customer service affecting customer satisfaction market share and brand image.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Probability Priority Ranking4

Risk Type Risk Description of Occurrence Impact Magnitude1 Impact Time2 Value Chainframe3 Links of Impact Potential Financial Impact Response Measures

Transfor- Raw material Extreme weather may cause fluctuations in Medium Medium Short to Operations Medium Increased operating Establish diversified raw material procure-

raw material prices increasing the Compa- ment channels and enhance supply chain

mational risk ny's production costs medium term costs management efficiency

risks

Reputation Failure to properly manage climate risks may Low Medium Short to Operations Medium Decreased operating Establish a climate change information

damage the Company's reputation thereby disclosure mechanism participate in industry

risks affecting brand value and customer trust medium term income environmental initiatives and conduct public

awareness activities

Opportunity Type Opportunity Explanation Probability Impact Magnitude Impact Timeframe Value ChainLinks

of Occurrence of Impact

Priority Ranking5 Potential Financial Impact Response Measures

Energy Alternatives Climate change encourages the Company to Medium Medium Short to medium Operations Medium Reduced operating costs Assess the existing energy structure

increase the proportion of clean energy formulate clean energy substitution plans

usage which helps mitigate future energy term prioritize the adoption of renewable energy

price escalation risks and promotes such as solar and wind power; optimize

participation in the carbon trading market energy management systems reduce energy

consumption through energy-saving

transformation and participate in the carbon

trading market

Technological Upgrade Climate change creates demand and Medium Medium Medium and Operations Medium Reduced operating costs Increase R&D investment adopt collabora-

opportunities for technological innovation tive R&D models promote the development

driving the emergence of new technologies long-term of low-carbon and intelligent manufacturing

new processes and new products thereby technologies; introduce digital tools to

improving production efficiency and optimiz- optimize production processes and enhance

ing manufacturing processes efficiency

Market Expansion Consumer demand for energy-efficient Medium High Medium and Operations High Augmented operating income Continuously develop green and energy-effi-

products continues to grow offering broad cient products apply for green certifications

market prospects; customs AEO certification long-term strengthen market promotion and highlight

enhances market recognition the environmental attributes of products;

obtain customs AEO certification and

maintain its continuous validity

? Low: The opportunity has relatively minor impact on business is relatively small but it can still bring some revenue or efficiency improvements and can be handled routine operational management without the need for significant resource investment or strategic adjustments.Medium: The opportunity can bring certain business growth or market share improvements has a positive impact on the business but requires the enterprise to invest resources and adjust strategies within a certain period to address and seize the opportunity.High: The opportunity can bring significant market breakthroughs business growth or technological innovations significantly improves the enterprise's competitiveness and profitability and requires the enterprise to take immediate action invest considerable resources and possibly adjust its overall strategy to fully leverage this

opportunity.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Impact Risk and Opportunity Management Management Measures

To implement the strategic deployment of carbon emission reduction

Management Process carbon peaking and carbon neutrality Solex has introduced multiple

specific carbon reduction implementation plans regularly conducted Case Study: Dual Carbon Thematic Training

Focusing on the identification assessment and management of carbon knowledge training to strengthen employees' low-carbon From October ?? to ?? ???? Solex participated in

climate-related risks and opportunities the Company has estab- awareness and actively utilized a smart carbon emission management the special training program themed "Developing

lished a full-process risk management mechanism and has platform to achieve real-time tracking and dynamic management of the New Energy Industry Chain and Advancing 'Dual

formulated dedicated response plans for extreme weather carbon footprints. Carbon' Work" jointly organized by the Organiza-

events such as typhoons and heavy rainfall frequently occurring

tion Department of the Xiamen Municipal Party

in its operating locations continuously enhancing its capacity to Optimization of Proactively deploy clean energy substitution and high-efficiency

address climate change. energy structure energy-saving technology upgrades gradually replace high

Committee the Municipal Development and

energy consumption and high emission equipment and achieve Reform Commission and Tong'an District. Oriented

carbon reduction by improving energy utilization efficiency. toward practical application the training was deliv-

Upgrade of Implement technological transformation and process optimiza- ered by experts and scholars in the "Dual Carbon"

production tion to reduce energy consumption and waste emissions promote field who systematically outlined the comprehen-

processes resource recycling and decrease carbon emissions in production sive green transformation of economic and social

Risk identification Risk response Risk monitoring

processes.and assessment and adjustments Smart carbon Build a smart carbon emission management platform based on development and the international and domestic

artificial intelligence and big data technologies to accurately track development trajectory and intrinsic logic of the

Every March the Based on the Continuously track emission

management carbon footprints meet regulatory requirements enhance "Dual Carbon" strategy from a macro perspective

energy depart- results of risk and monitor the transparency and help enterprises set carbon reduction targets

platform analyzed key development priorities and objectives

ment organizes identification and effectiveness of and track the progress of achievement.in the "Dual Carbon" field and in conjunction with

the identification assessment the risk measures Carbon emission Build a carbon emission accounting system comprehensively sort

and assessment Company grasp changes in monitoring and out the Company's carbon emission data and provide scientific

the new energy industry provided practical guid-

management basis and data support for carbon reduction pathways. ance for enterprises on key and emerging topics of climate-related formulates risk risk status in real

risk factors and response strate- time and make Carbon Strengthen the communication and training on carbon peaking

such as zero-carbon industrial parks carbon

knowledge and carbon neutrality implementation plans and enhance the markets ESG carbon footprints and digital prod-updates the gies to ensure the targeted adjust-

training green development and environmental awareness of employees uct passports.register of effectiveness and ments and and partners.identified risks operability of improvements Supply Encourage suppliers to use low-carbon raw materials and green

and opportunities relevant measures. based on actual chain production processes jointly build a green supply chain ecosys-

management tem and achieve coordinated carbon emission reduction across accordingly. scenarios. the industrial chain.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Indicators and Objectives Carbon Verification

The Company closely monitors and regularly conducts greenhouse gas inspections formulates the annual During the Reporting Period the Company engaged a third-party institution to com-

Greenhouse Gas Inventory and conducts internal reviews and management reviews concurrently to ensure the plete comprehensive verification of GHG emission quantification reporting and

accuracy completeness and traceability of all data records. In the future with the objective of supporting emission reduction performance and obtained a Greenhouse Gas Verification State-

carbon reduction initiatives the Company will continue to deepen climate change management improve the ment Certificate providing standardized and verifiable technical support for the

carbon emission accounting system promote the implementation of energy-saving and carbon reduction Company's carbon inventory implementation of emission reduction targets and

technologies and contribute corporate strength to achieving the "Dual Carbon" goals. carbon neutrality pathway.Key Performance Indicators Unit ????

Total GHG Emissions tCO?e ??????.??

GHG Emission Intensity tCO?e/RMB ????? revenue ?.??

Direct GHG Emissions (Scope ?) tCO?e ????.??

Indirect GHG Emissions (Scope ?) tCO?e ?????.??

GHG emission reduction tCO?e ????.?????? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Environmental Compliance Management

Environmental management system Environmental Management Organizational Structure

Environmental management constitutes a vital cornerstone of

the Company's green development. The Company strictly com-

Environmental Responsible for the daily supervision management and monitoring of the Company's environmental protection work

plies with laws and regulations such as the Environmental strictly controlling pollutant emissions continuously improving environmental conditions ensuring compliance and Management Center

and has formu- deepening emission reduction and coordinating with government environmental authorities.Protection Law of the People's Republic of China

lated policies including the Solex Environmental Protection Man-

agement System and the Solex Environmental Protection Reward

and Punishment System defining the responsibilities of relevant Production-related Cooperate with the Environmental Management Center be responsible for environmental protection and environmental

risk management within their respective departments advocate clean production and recycling in workshops and

departments incorporating environmental performance into Departments eliminate pollutants from the source to the greatest extent possible.employee performance evaluations and clarifying the standards

for environmental rewards and penalties. During the Reporting

Period the Company further refined the implementation of

environmental rewards and punishments and introduced new Logistics-related Cooperate with the Environmental Management Center and relevant departments proactively promote environmental

Departments protection initiatives and ensure the immediate supply of emergency and safeguard materials in procurement.management procedures advancing the implementation of

environmental requirements through institutionalized and stan-

dardized management systems.As of the end of the Reporting Period both the Company and its

subsidiary Zhangzhou Solex had obtained environmental man- Key Performance

agement system certification certificates and Zhangzhou Solex

had also been certified as a national-level Green Factory.During the Reporting Period

the Company invested ????.??(in RMB ?????) in environmental protection

and paid ?.??(in RMB ?????) in environmental protection taxes;

Number of environmental incidents: ?.Solex Environmental Management System Certification Certificate???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Management of Environmental Risks Emergency Plans and Drills

The Company attaches great importance to environmental Adhering to the principles of "prevention first self-rescue first unified command and division of responsibilities" and in light of actual

risk control and continuously improves its environmental conditions the Company has formulated the Contingency Plans for Environmental Emergencies established an internal emergency organiza-

risk management system. The Company has formulated tion standardized internal reporting procedures for environmental emergencies and developed full-process handling procedures for key

the Procedure for Environmental Factors and Occupational areas including wastewater waste gas hazardous chemicals and electroplating workshops.Health and Safety Hazard Identification Evaluation and In addition the Company regularly organizes emergency training and drills for environmental incidents providing employees with profes-

Control which stipulates the steps for identifying and sional theoretical support and enriched knowledge reserves through training strengthening overall emergency preparedness awareness

evaluating environmental factors records identified and conducting targeted drills based on different emergency scenarios to enhance employees' operational proficiency in emergency mea-

environmental factors in the Environmental Factors Identifi- sures and their capability to respond to unexpected situations.cation and Evaluation List applies a multi-factor method

for preliminary evaluation and determines significant

environmental factors based on the evaluation results. Case Study: Training on the Contingency Plans for Environmental Emergencies

Hazard Identification

On September ?? ???? the Company conducted training on the Contingency Plans for Environmental

To effectively strengthen environmental protection and

Emergencies for relevant personnel covering core modules including emergency plans and management

work safety the Company has formulated the Environ-

standards identification of environmental risk sources and hazard inspection analysis of common issues

mental Hazard Identification System clarifying the

in environmental emergency inspections and drills emergency organizational structure and response

responsibilities of personnel at all levels standardizing

procedures and configuration of emergency materials and practical response measures. Through a

the forms and specific requirements for routine com-

combination of theoretical instruction and case analysis this training ensured that participants mastered

prehensive major event holiday quarterly profession-

key emergency points and enhanced their emergency response capabilities.al and accident-category hazard inspections and Emergency Training

designating dedicated personnel from the Environmen-

tal Management Center to systematically sort and regis-

ter various hazard items forming a hazard registration Key Performance

ledger to achieve standardized management of hazard

identification and rectification.Key Performance During the Reporting Period

??? the Company conducted ? environmental emergency training sessions and ?? environmental emergency drill activities.In ???? the Company conducted a total of

environmental hazard inspections within the park

achieving a ???% rectification completion rate.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Environmental Protection Training Key Performance

During the Reporting Period the Company conducted multi-dimensional specialized environmental

training for environmental officers and personnel in relevant positions. A total of ?? training sessions

were carried out across various parks covering environmental regulations interpretation electroplat- During the Reporting Period

ing wastewater discharge control solid waste management VOCs control ODS management the Company conducted ?? environmental protection training sessions

environmental emergency response hazardous chemical management interpretation of environ-

mental protection policies environmental culture promotion and environmental protection require- with ???? participant attendances and a total of ????? training hours.ments for new employees and supplier construction timely disseminating the latest environmental

policy information effectively strengthening overall environmental responsibility awareness and

comprehensively enhancing the Company's environmental knowledge dissemination and compli-

ance management capabilities.Environmental Targets and Planning

The Company regards environmental protection as its own responsibility continuously

Case Study: Training on Relevant Environmental Laws and advancing the implementation of environmental management objectives and special plans.Regulations and Accident Review Its subsidiary Zhangzhou Solex has established waste reduction targets to effectively

decrease waste emissions in production processes promoting the in-depth implementation

On April ?? ???? the Company organized training on relevant environmental laws and regulations and accident

of environmental protection work through rigid indicators.review primarily covering in-depth interpretation of laws and regulations related to water pollution air pollution

noise pollution solid waste pollution soil and groundwater pollution prevention and control supplemented by

specialized explanations based on typical penalty cases and current emission standards. A total of ?? people from

relevant positions participated in the training. Environmental Targets Annual Achievement Status

Achieved compliant treatment

Achieved

of waste throughout the year;

Standardized management and

Achieved

disposal rate of solid waste: ???%.Training Site???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Resource Utilization Governance

Centered on the energy policy of "compliance with law fine management low-carbon

Energy Management manufacturing and sustainable development" the Company has formulated institu-

tional documents including the Energy Management Manual Resource and Energy

Energy management serves as a core instrument for enterprises to practice green and low-carbon develop- Management Procedure and Energy Consumption Indicator Assessment Management

ment and is also a critical pillar for the implementation of ESG strategy. Solex incorporates energy into full Measures. The Vice Chairman serves as the top management leader appoints a man-

life-cycle management and reduces energy consumption while improving energy efficiency through the agement representative and allocates corresponding resources to ensure the estab-

establishment of an energy control system promotion of energy-saving technological transformation and lishment implementation maintenance and continuous optimization of the energy

optimization of the energy use structure. management system. In addition the Company has established an Energy Conserva-

tion Leadership Group and a Working Group to coordinate energy use identification

Energy and Carbon Management Structure review and supervision with each department designating an energy officer responsi-

ble for departmental energy management.To stimulate enthusiasm for energy conservation and consumption reduction the

Company conducts monthly and annual energy consumption assessments. Bonuses

Xiamen Solex High-tech Industries Co. Ltd. are granted based on energy performance assessment results. Departments achieving

annual targets are awarded the honorary title of "Advanced Collective in Energy

Energy and Conservation" while departments failing to meet targets are required to verify and

Resource Carbon Management Engineer analyze abnormal consumption data and formulate improvement plans. As of the end

Management of the Reporting Period both Solex and its subsidiary Zhangzhou Solex had obtained

Department

Energy and energy management system certification.Carbon Technical Engineer

All Departments All Departments

of the Group Center of the IDM Division Robotics Division

Departments Departments Departments

Solex's Energy Management System Certification???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Strategy

Probability of Impact Impact Value Chain Priority Potential

Type of Risk/Opportunity Description of Risk/Opportunity Magnitude Response MeasuresOccurrence Timeframe Links of Impact Ranking Financial Impact

Risk of Energy Rising costs of electricity or steam and Medium Medium Short to Operations Medium Increased Improve energy utilization efficiency

other energy sources increase the and reduce energy consumption and

Price Fluctuations Company's energy costs and compress medium term operating costs costs through energy-saving and

profit margins emission-reduction measures

Low energy Outdated technology aging equip- Medium Medium Short to Operations Medium Increased Upgrade to high-efficiency equipment

ment and poor management may and processes; conduct regular equip-

efficiency easily lead to low energy efficiency and medium term operating costs ment maintenance; develop produc-

high unit product energy consumption tion EMS management systems and

energy management systems to

monitor energy consumption data in

real time and focus monitoring and

analysis on high energy consumption

areas

Policy support The government has introduced Medium Medium Short to Operations Medium Increase in Track policies and apply for subsidies in

subsidies incentives and preferential a timely manner; plan clean energy

loans to encourage enterprises to adopt medium term operational income projects and make sound investments

clean energy or improve energy in energy-saving retrofits; formulate

efficiency carry out energy-saving energy efficiency improvement plans

retrofits of existing equipment and

develop and establish energy and

carbon management centers

Technical opportunities The introduction of renewable energy High High Long-term Operations High Decreased Fully utilize idle rooftops to invest in

technologies such as photovoltaics and photovoltaic and energy storage

energy storage can assist enterprises in operating costs construction. At present Changtai has

green transformation green manufac- completed photovoltaic construction

turing and electricity cost savings and in ???? new photovoltaic and

energy storage projects will be added in

the Xiamen area

Green and enterprise promotes energy conserva- Medium Medium Short to Operations Medium Reduced By carrying out energy-saving and

tion culture enhancing employees' low-carbon training and energy-saving

Low-Carbon Culture knowledge and awareness of energy medium term operating costs activities foster an energy conservation

management and reducing energy and low-carbon culture atmosphere

consumption and strengthen employees' green

awareness???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Impact Risk and Opportunity Management Management Measures

The Company integrates the concept of energy conservation and emission reduction into

corporate culture development regularly organizing energy-saving knowledge training

promotional activities and on-site practical guidance to comprehensively enhance

Management Process employees' awareness and practical capabilities ensuring effective implementation of

To enhance resilience against energy risks the Company has formulated the energy-saving measures across all production and operational processes.Energy

Risk and Opportunity Control Procedure and established a Risk and Opportunity Assess-

ment Team responsible for comprehensive identification regular assessment measure

formulation implementation supervision and effectiveness verification of the Compa- Case Study: Energy-Saving Training on Compressed Air in Pressure Pipelines

ny's energy risks and opportunities ensuring controllable energy risks.On December ?? ???? Solex conducted energy-saving training on compressed air in

pressure pipelines for production line employees and safety officers. The training

Each department conducts risk identification and prepares the Energy Risk

Risk and Opportunity Assessment Form which is consolidated and reviewed by explained pressure pipeline operation and maintenance and emergency handling

Identification the Energy Conservation Promotion Group and reported to top manage- procedures and highlighted five key points for reducing losses through energy

ment. conservation further clarifying practical pathways for pressure pipeline energy-sav-

ing work.Risk Identified energy risks are scored according to the likelihood of occurrence

Assessment and degree of loss to determine risk levels and rectification priorities.Risk control measures such as routine monitoring periodic tracking and

Risk Control analysis and formulation of targeted plans are adopted based on risk

levels and their effectiveness is confirmed through review.Risk Update When external conditions or available resources change risk control plans are updated in a timely manner.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Indicators and Objectives Annual

In light of actual production and operational conditions and industry energy-saving standards and considering the types ???? Energy Management Targets Achievement Status

consumption volumes and energy-saving potential of energy used by each department Solex decomposes targets into Comprehensive energy consumption per RMB ????? processing fee in the Miscella-

energy indicators for each energy-using unit and conducts monthly summaries and statistical analysis of completion neous Unit decreased by ?%

Achieved

progress to support the successful achievement of annual energy-saving targets. Comprehensive energy consumption per RMB ????? processing fee in the Environ-mental Protection Department decreased by ?.??% Achieved

Comprehensive energy consumption per RMB ????? processing fee in the PME

Key Performance Indicators Unit ???? Quality Department decreased by ??.??% Achieved

Comprehensive energy consumption per RMB ????? processing fee for metal

Total Energy Consumption tce ?????.?? polishing decreased by ?% Achieved

Comprehensive energy consumption per RMB ????? processing fee for casting

Achieved

Energy Consumption Intensity tce/RMB ????? revenue ?.?? decreased by ?%

Comprehensive energy consumption per RMB ????? processing fee for machining

decreased by ?% AchievedNatural Gas ????? m3 ??.??

Comprehensive energy consumption per RMB ????? processing fee in surface

treatment workshop ? decreased by ??% Achieved

Gasoline Liters ?????.??

Comprehensive energy consumption per RMB ????? processing fee for shower

assembly decreased by ?% Achieved

Diesel Liters ?????.?? Comprehensive energy consumption per RMB ????? processing fee for basin

assembly decreased by ?% Achieved

Total Purchased Electricity (Domestic) kWh ????????

Total Purchased Electricity (Vietnam) kWh ??????? Energy Conservation and Emission Reduction Practices

Total Purchased Heat GJ ?????.?? To steadily advance energy conservation and consumption reduction the Company formulates annual

energy management plans and conducts full-cycle tracking and evaluation of implementation progress and

Photovoltaic power capacity kWh ???????.?? energy-saving benefits. In ???? the Company implemented a total of ?? energy-saving initiatives and its

subsidiary Zhangzhou Solex completed ?? initiatives focusing on the construction of intelligent energy

Clean energy consumption tce ????.?? management systems clean energy projects energy-saving transformation plans and replacement of aging

Renewable energy consumption tce ????.?? equipment systematically promoting optimization of the energy consumption structure and improvement

of energy efficiency.Non-Renewable Energy Consumption tce ????.??

Total Direct Energy Consumption tce ???.??

Total Indirect Energy Consumption tce ????.??

Intelligent Energy Management System???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Case Study: Zhangzhou Solex Photovoltaic Expansion Project Case Study: Energy-Saving Transformation of Ovens for Electroplating

Line Products

Under the guidance of national strategy Zhangzhou Solex based on its existing

rooftop photovoltaic construction launched a photovoltaic expansion project The ovens for electroplating line products at Solex originally used steam heating

improving existing rooftop photovoltaics and parking lot facilities increasing with daily steam consumption of ? tons for two production lines combined. They

installed photovoltaic capacity by ?.? MWp adding ??? parking spaces and ? were retrofitted to air energy heating improving heating efficiency. Recovered

charging piles and increasing power generation by ??%. After official grid connec- cold air can also be used simultaneously for summer workshop cooling and acid

tion the total installed photovoltaic capacity reached ?? MWp with annual power copper refrigeration needs. This saves ???? tons of steam annually. Calculated at

generation of approximately ?? million kWh reducing carbon dioxide emissions RMB ??? per ton the annual savings amount to ??.??(in RMB ?????) achieving

by ???? tons. The project integrates rooftop power stations and parking lot dual benefits of cost reduction efficiency enhancement and green production.photovoltaic charging integrated parking spaces marking a critical step toward

the goal of a "zero-carbon factory."

Panoramic View of Zhangzhou Solex Photovoltaics???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Water resource management

To strengthen water management and improve water use efficiency Solex follows the man- Case Study: Reuse of Assembly Water

agement principles of planned water use intelligent control and scientific water conserva-

In Workshop ?#-? of the subsidiary Zhangzhou Solex water used for product functional testing in the assembly

tion. It has formulated the Water Use Management System under which the Energy Section

workshop is directly discharged to the sewage treatment station. After simple treatment to meet standards it is

coordinates overall water management formulates planned water use schemes and coordi-

used for landscaping and cleaning within the park. The average monthly assembly water consumption is ??? tons

nates departments to implement water management requirements. The Engineering Section

reaching up to ??? tons in peak months. After implementation of assembly water reuse annual water savings are

is responsible for overall operation and maintenance of the intelligent water management

expected to reach ???? tons saving RMB ????? significantly improving water resource recycling rates.system and water-using departments are responsible for water resource management within

their respective jurisdictions.Water An intelligent water meter ledger has been established. Combined with real-time data collected by

Conservation intelligent water meters water usage of each department is statistically analyzed and planned

Measures water use schemes are dynamically adjusted based on actual usage to ensure rationality and

effectiveness.Regular water-saving inspections are conducted. Water-use areas such as restrooms production

workshops and office areas are inspected for leakage. Any damaged equipment or leakage is

reported promptly for repair arrangements.The Energy Department regularly organizes water balance tests which are inspected and

approved by relevant government departments to obtain water balance test reports. Rectifica-

tions or optimizations are implemented in a timely manner according to report recommenda-

tions. Key Performance Indicators Unit ????

Water-saving devices are promoted and adopted. Appliances that do not meet water-saving Total Freshwater Consumption ton ??????

standards are discontinued. In new construction reconstruction and expansion projects

water-saving factors are prioritized and water-saving processes and equipment are adopted. Fresh water consumption ton ??????

Total Water Consumption ton ??????

Regular water use training and water-saving activities are conducted to enhance water-saving Water Consumption Intensity tons/RMB ????? revenue ?.??

awareness among all employees.Recycled water consumption ton ????????? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Material Management

Green Environmentally friendly materials with non-plasticizing and degradable characteristics are prioritized for packaging

Materials and other materials to reduce the use of toxic and harmful substances.The Company strictly complies with the Circular Economy Promotion

Law of the People's Republic of China and other regulations. It has

Material When storing hazardous chemicals such as lithium batteries measures such as temperature and humidity control

formulated the Rules on the Use of Returnable Items and Early Warn- Storage explosion-proof electrical facilities distance from fire and heat sources and anti-static protection are implemented.ing Mechanism Management Measures under which the returnable Firefighting facilities are equipped and materials are stored in designated zones according to status.item administrator is responsible for procurement applications

outbound issuance operations depreciation and statement prepa- Packaging By optimizing product packaging design the amount of packaging materials used is reduced thereby reducing

resource consumption and waste generation.ration ensuring normal supply of turnover materials to internal Reduction

factories and external suppliers.Recycling Material recyclability is advocated materials such as sealing frames are recycled and reused and suppliers are encouraged to recycle and reuse cartons pallets plastic blister trays and other returnable items.Expanded Polystyrene Lithium Battery Warehouse???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Pollutant Emissions

Each year the Company entrusts qualified third-party testing institutions through the Install dust treatment systems and use cyclone

Environmental Management Center to conduct environmental monitoring of pollut- Dust dust removal water spray dust removal and pulse

dust removal methods to treat dust

ants such as wastewater generated during production boundary noise and exhaust

Acidic Install exhaust systems to collect acidic exhaust

gas. During the Reporting Period monitoring was conducted at monitoring points Exhaust gases which are then treated by acid mist scrubbers

including the total wastewater discharge outlet exhaust gas outlet of the polishing Gas and discharged through the exhaust stack

workshop and exhaust gas outlet of the injection molding workshop. All monitoring Organic Install purification equipment and use water

curtain absorption water spray catalytic combus- Electroplating Exhaust Spray Painting Exhaust Injection Molding results complied with national and local emission standards. Exhaust Gas Treatment Facilities Gas Treatment Facilities Exhaust Gas Treatment tion and activated carbon adsorption processes to Facilities

Gas

Waste Gas Management treat organic exhaust gases

For exhaust gas and dust generated in electroplating painting injection molding and

other processes the Company has configured corresponding exhaust gas treatment

equipment and technologies and formulated the Operating Instruction for Exhaust Case Study: ODS Training

Gas Treatment Facilities to provide professional technical guidance for standardized On June ?? ???? Zhangzhou Solex organized ODS training explaining the definition and hazards

operation ensuring stable facility operation and compliant emissions. Meanwhile the of ODS professionally interpreting relevant regulations and standards and analyzing examples to

subsidiary Bestter has formulated the Soil Water and Air Pollution Prevention and help participants master ODS-related knowledge and control requirements. A total of ?? employ-

Control Management Measures. The Environmental Management Center and produc- ees participated in the training.tion workshops jointly manage dust and other exhaust gases and clarify relevant

procedures for air pollution control. In addition the Company and its subsidiaries

conduct special exhaust gas treatment training from time to time to continuously

deepen employees' understanding and mastery of exhaust gas characteristics and

treatment processes.Key Performance Indicators Unit ????

Waste Gas Emissions ????? m3 ??????.??

Nitrogen Oxides (NOX) Emissions ton ?.??

Sulfur Oxides (SOX) Emissions ton ?.??

Hydrogen chloride ton ?.??

Volatile organic compound (VOC) ton ?.??

ODS Training

Sulfuric acid mist ton ?.??

Particulate matter (PM) emissions ton ??.?????? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Wastewater Management

The Company strictly implements wastewater treatment with classified control and

quality-based treatment to ensure compliant discharge of production and domestic

wastewater and utilizes a reclaimed water reuse system for water conservation

within the park. In ???? the Company reused ????? tons of wastewater and

achieved a wastewater recycling rate of ??%. The Company requires sewage treat- Key Performance Indicators Unit ????

ment operators to strictly follow operating instructions monitor all wastewater

treatment processes throughout promptly report abnormalities and achieve full Wastewater Discharges ????? m3 ??.??

traceability and control of wastewater treatment processes.Wastewater Treatment Volume ton ??????

The subsidiary Zhangzhou Solex has formulated the Sewage Treatment Center Oper-

ation Management Measures. Wastewater treatment adopts a "chemical precipita- Wastewater Discharge Intensity tons/RMB ????? revenue ?.????

tion + hydrolysis acidification" process equipped with online monitoring facilities Wastewater reuse volume ton ?????

connected to government departments to monitor wastewater discharge data in real

time and ensure stable compliant discharge through dynamic supervision. Wastewater reuse rate % ??

Chemical oxygen demand (COD) ton ??.??

Park Wastewater Treatment Measures

Five-day biochemical oxygen demand (BOD?) ton ?.??

Domestic Adopt biochemical treatment technology before discharge

wastewater Suspended solids ton ?.??

Ammonia nitrogen (NH?-N) ton ?.??

Industrial

wastewater Adopt chemical precipitation and anaerobic + aerobic treatment

technologies before discharge Total phosphorus (P) ton ?.??

Animal and plant oils ton ?.??

Reuse of Adopt reclaimed water reuse measures combining membrane

reclaimed water separation and ion exchange methods relying on an automated

reclaimed water reuse system to treat park wastewater with a

reuse rate exceeding ??% mainly used for production line

cleaning and partially for workshop chemical preparation???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Waste Management

Solex strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid

Waste regularly conducts special waste training and has formulated the Solid Waste Management Measures and the Solex Hazardous

Waste Warehouse Management System. The Environmental Management Center and the Administration Department are mainly responsi-

ble for supervising waste treatment and coordinating with external parties. Management requirements for classification collection Key Performance Unit ????

storage and disposal of solid waste are clarified. When new production activities occur the Environmental Management Committee Indicators

re-evaluates or revises the Detailed List of Solid Waste Discharge to improve waste utilization rates and reduce waste generation.Quantity of waste

Waste Main wastes Main disposal measures

ton ????.??

Case Study: generated

Standardized Solid Waste Management Training Quantity of hazardous

· Are uniformly delivered to

Waste mineral oil On March ?? ???? the Company's Environmental Management waste generated

ton ????.??

designated hazardous waste

paint waste waste warehouses and entrusted Center organized special training on standardized solid waste

Hazardous organic solvents to qualified institutions for management. A total of ?? environmental officers from various Quantity of non-hazard-

waste emulsified ton ????.??

waste disposal;liquids laboratory departments and employees in hazardous waste management-re-

ous waste generated

· It is prohibited to arbitrarily

waste liquid surface discard incinerate or bury lated positions participated. The training adopted a "lecture + quiz"

treatment waste Quantity of waste hazardous waste on site model systematically teaching basic knowledge of solid waste

and other wastes ton ????.??within the park or outside disposed ofmanagement and effectively enhancing participants' compliance

the Company.awareness and operational capabilities in solid waste management. Quantity of hazardous

ton ????.??

· Are entrusted to qualified waste disposal of

Waste cardboard external disposal vendors;

General waste sand scrap · It is prohibited to burn or Quantity of non-hazard-

waste metal parts waste bury waste arbitrarily on ous waste disposed of ton ????.??

wood etc. site or within or outside the

park.Waste disposal compli-

Domestic · Handed over to the

%???

ance rate

waste Domestic waste

environmental health

management department

for unified processing.Standardized Solid Waste Management Training???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Management of Other Pollutants Implementation of Green Operation

Solex actively carries out prevention and control of noise soil and other pollution.The Company has installed noise and vibration reduction equipment and adopted Green Office

noise reduction technologies such as double-layer soundproof glass construction of Green office practices represent a critical scenario for enterprises to implement ESG principles and fulfill

soundproof rooms and factory sound insulation to ensure that noise does not environmental responsibilities. With energy consumption control and resource recycling as its core focus the

exceed the standards stipulated in the Emission Standard for Industrial Enterprises Company promotes low-carbon intensive and ecological office operations through institutional regulation

Noise at Boundary. Its subsidiary Bestter has actively improved its noise pollution and full employee participation continuously reducing operational carbon emissions and laying a solid foun-

prevention and control management system and formulated the Noise Pollution dation for achieving carbon peaking and carbon neutrality goals.Control Management Measures clarifying noise control procedures and providing

institutional guarantees for reducing noise impact and improving the working Actions for Green Office

environment.Electricity conservation is advocated through the use of LED energy-saving lamps

Meanwhile the Company has formulated the Soil Environment Management System and lighting in corridors balconies stairways and similar areas has been replaced

to standardize daily supervision methods and content conduct routine visual with sensor-activated lights.inspections of soil protection facilities road anti-seepage projects and potential

linear pollution hazards and prevent potential pollution risks. Air conditioning temperature is set at ??°C; public areas such as meeting rooms are

equipped with timed power-off sockets and sensor switches to effectively prevent Timed Power-Off Socket

waste caused by appliances being left on after use.Noise Management Soil Management

· Workshop flooring is designed to Double-sided printing and secondary-use paper printing are encouraged to · Noise-related departments strictly conserve paper with gradual implementation of paperless office practices.adhere to operating procedures during prevent liquid infiltration;

equipment operation eliminating noise · Equipment and machinery in

intensification caused by improper operation are equipped with

handling; impermeable collection and Automatic faucets are widely adopted to reduce water waste caused by taps being Water-Saving Faucet

· Equipment is subject to regular mainte- containment facilities; left running thereby conserving water resources.nance and servicing; · For bulk liquid storage bund walls

· Where construction or renovation are installed in tank areas with

activities within the factory generate impermeable ground treatment and

regular inspections conducted; Waste classification posters are displayed on environmental bulletin boards; waste excessive noise work must be immedi-

· At loading and unloading points is sorted and recycled accordingly and used dry batteries are uniformly collected ately suspended and may only resume

leak-proof pumps are used to transfer and handed over to qualified entities for disposal.after effective noise insulation measures

are implemented; bulk liquids inlet and outlet pipelines

· Construction activities during nighttime are not exposed and overflow safety

devices consist of impermeable Garbage Sorting Postersand rest periods are avoided.containers.???? Environmental Social and Governance (ESG) Report Nurturing the Ecosystem and Advancing Sustainably Through Green Development ??

Environmental Protection Activities Protection of Ecosystem and Biodiversity

The Company organizes diverse environmental awareness initiatives integrating knowledge of energy conservation Solex strictly complies with the Regulations on the Administration of Environmen-

waste reduction garbage classification and resource recycling into employees' daily work and life through environ- tal Protection for Construction Projects and the United Nations Convention on

mental knowledge quizzes interactive games and themed on-site presentations thereby encouraging proactive Biological Diversity fully incorporating ecosystem and biodiversity protection

adoption of green office practices and low-carbon commuting behaviors. into the lifecycle management of renovation and expansion projects and

continuously promoting coordinated development between project construc-

tion and ecological conservation.Case Study: World Environment Day Themed Activity

Prior to Project Implementation

On June ? ???? in response to the Ministry of Ecology and Environment's World Environment Day theme of "Beauti- Environmental impact assessments are conducted to compre-

ful China—I Am a Pioneer" Solex and its subsidiary Zhangzhou Solex organized an environmental-themed event hensively evaluate the project's potential impacts on surround-

within the industrial park. Through activities such as an environmental signature wall and eco-themed games the ing ecosystems and biodiversity.Company promoted environmental and energy-saving knowledge and offered prizes to stimulate employee partici-

pation effectively deepening and disseminating the corporate culture of environmental protection.During Project Construction

Comprehensive environmental protection technical measures

are implemented to ensure that all pollutant emissions comply

with national and local standards.Upon Project Completion

Environmental acceptance is strictly carried out in accordance

with regulations to prevent adverse impacts on ecosystems and

biodiversity thereby effectively safeguarding regional ecologi-

cal balance.Environment Day Event2025 Environmental Social and Governance (ESG) Report

Empowering Industry

and Creating Enduring Value

Our Philosophy

Solex remains customer-centric adheres to innovation-driven

development and focuses on the research development and

manufacturing of robot organizational systems healthcare

software and hardware and intelligent kitchen and bathroom

products. At every stage from procurement to product delivery

we rigorously enforce high standards of quality and reliability

control and embed data security and user privacy protection

as core product values and fundamental responsibilities.Our Actions

Innovation-driven

Product and Service Safety and Quality

Information Security and Customer Privacy Protection

Supplier Management

SDGs???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Innovation-driven

Governance

Upholding the business philosophy of "innovation design manufacture" the Company has established systems such as the New R&D Personnel Information

Product Development Control Procedures and the Software Lifecycle Procedure and comprehensively standardized the processes of

new product development and innovative R&D in accordance with the New Technology Development Process and New Project Devel-

opment Process thereby controlling design quality and delivery timelines at the source. ?%

??%＜?%

Total R&D Team Members ??? persons

Guided by market demand the Company's R&D activities are overseen by the General Manager as the highest decision-maker and

administrator who coordinates overall R&D management. The IDM R&D Center and the Robotics R&D Center serve as core R&D Proportion of ??%By Age

departments undertaking technological development and product innovation in their respective fields; the Intellectual Property Total Employees ??.?? % ??%

Department operates as an independent functional support unit providing professional support for the protection of R&D achieve-

ments and compliant operations. In addition the Company has established a unified database encompassing the latest global prod-

ucts and designs providing precise guidance for new product R&D directions. Under ?? (exclusive) years old

?%

??% ?? (inclusive) to ?? (exclusive) years old

R&D Organizational Structure Diagram ?? (inclusive) to ?? (exclusive) years old

?? (inclusive) to ?? (exclusive) years old

??% ?? years old or above

By Academic

Solex Qualification ??%

General Manager ??%

Bachelor’s Degree

College

High school or below By Gender

IDM R&D Center Intellectual Property Department Robotics R&D Center Master’s Degree or Above ??%

Intelligent Kitchen and

AIoT R&D Center Healthcare Software and

Organizational Hardware Male

Bathroom R&D Hardware R&D Systems R&D

Shared Module R&D

Product R&D Female???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Strategy

Type of Risk/ Description of Risk/ Probability of Impact Impact Value Chain Priority Potential

Response Measures

Opportunity Opportunity Occurrence Magnitude Timeframe Links of Impact Ranking Financial Impact

Newly developed products or technologies may fail to At the project initiation stage for new product develop-

meet market demand or industry trends due to ment customer requirements are repeatedly validated

Technology Increased

directional deviations and R&D samples may not Low Medium Short to medium term Operations Medium and submission of both market and technical feasibility

R&D risk operating costs

satisfy customer requirements resulting in wasted analyses is mandated to ensure that R&D projects are fully

R&D resources substantiated in both commercial and technical terms

Proactively conduct research and analysis on macro

New businesses face multiple challenges including markets competitive dynamics and industry policies;

Market and rapid changes in market demand the influx of strong continuously monitor demand changes and trend move-Operations Increased

Competition new competitors and imitation of innovative Medium High Medium and long-term High ments; and actively integrate into the industry ecosystem

operating costs

Risks products which may lead to business growth falling downstream to obtain critical information and resources thereby

short of expectations supporting flexible business adjustments and risk

response

Growing market demand for service robots and core Focus on breakthroughs in core technologies and collabo-

Opportunities

components provides a pathway for technological Operations rate with leading industry companies to jointly advance

in the Robotics High High Medium and long-term High Revenue Growth

upgrading and market expansion of the Company's downstream product innovation and industrialization in key compo-Industry

intelligent health hardware business nents and specific application scenarios

Integrate domestic and international innovation resourc-

Global upgrading of health consumption and rapid

Market es to achieve technological convergence and product

technological iteration expand the market space for

expansion Medium High Medium and long-term Downstream High Revenue Growth upgrading enhance the core competitiveness of products

intelligent health hardware providing growth momen-

opportunities and services further strengthen global competitiveness

tum for the Company's export business

and explore high-value market regions

The Company has successfully developed innovative Systematically assess the current carbon emission status

Low-Carbon low-carbon processes that directly reduce carbon of existing processes accurately identify key emission

Technology emissions and carbon costs in production aligning High Medium Mid-term Downstream High Revenue Growth reduction processes introduce advanced low-carbon

Opportunities with the "dual carbon" policy trend while conferring technologies and conduct small-scale pilot validations to

green competitive advantages to products lay the foundation for large-scale application???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Impact Risk and Opportunity Management Metrics and Targets

During the advancement of innovative R&D the Company The Company is anchored in intelligent health-oriented and green development directions establishing R&D and innovation objec-

proactively conducts forward-looking risk assessment and tives with a forward-looking perspective on market demand and industry trends continuously increasing R&D investment and

opportunity identification relying on the Risk and Opportunity strengthening independent innovation in core technologies.Identification and Evaluation Form to carry out identification and In the robotics business the Company focuses on core technological breakthroughs in collaborative organizational systems for logis-

evaluation at each project stage effectively managing uncer- tics service robots and medical/elderly care service robots. It aims to make advancements in key technologies such as scene percep-

tainties in the R&D process ensuring the smooth progression of tion autonomous mobility multi-robot collaboration and human-machine interaction. The Company continuously optimizes

R&D projects and supporting steady innovation and continuous scenario-based solutions for the ToB markets including security cleaning logistics and delivery reception and guided tours and

breakthroughs in a dynamic competitive environment. customer service as well as for the wellness and elderly care market including mobility assistance and nursing and rehabilitation.This ongoing effort is dedicated to enhancing the stability adaptability and intelligence level of the robotic systems.In the healthcare software and hardware business the Company concentrates on sleep health skin and hair health oral health and

R&D Innovation Risk and Opportunity Management Process beverage health categories advancing technological R&D and product iteration actively deploying large models for smart health

home applications and constructing an intelligent and diversified ecosystem of health software and hardware; during the Reporting

Risk At each stage of new technology and new Period the Company successfully obtained MDSAP international medical device quality system certification from five countries and

Identification product development potential risk factors are

proactively and comprehensively identified continued to improve its ISO????? medical device quality management system thereby laying a solid compliance foundation for the

with regular project reviews conducted to global expansion of health products.ensure no significant omissions. In the intelligent kitchen and bathroom business the Company focuses on innovation in intelligent health-oriented and green prod-

Risk For identified risks comprehensive assessments

ucts promoting iterative upgrades of water-saving showers electronic shower systems intelligent toilets and other products and

Assessment are conducted based on likelihood of occur- strengthening core capabilities in water-saving technologies intelligent sensing and multi-point precise control.rence and degree of impact thereby determin- Meanwhile the Company deepens the sharing and reuse of AIoT and large AI model technologies across business segments provid-

ing risk levels and response priorities. ing strong support for multi-category and multi-scenario collaborative expansion steadily promoting the commercialization of R&D

Risk Based on risk levels corresponding preventive achievements and effectively unlocking the value of technological innovation. During the Reporting Period the number of patent

Management and responsive measures are formulated and applications increased steadily and the patent commercialization rate remained at a high level.implemented to effectively control risks and

mitigate their actual impact on projects. Key Performance

Risk Continuous tracking and monitoring of risk

tracking response measures are carried out with dynam- During the Reporting Period the Company's R&D investment: ?????.?? (in RMB ?????)

ic updates to risk status and management

strategies to ensure effective operation of the percentage of R&D investment in main operating income: ?.??%.risk management process.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Innovation-driven Measures Construction of Innovation Platform

Incentives for Innovative R&D The Company has established comprehensive R&D and innova-

tion platforms at multiple levels and has obtained corresponding

authoritative qualifications and recognitions. At the national

To stimulate technological innovation vitality and encourage level the Company has been recognized as a National Enterprise

employee invention and creation the Company has formulated Technology Center a National Industrial Design Center and a

documents such as the R&D Incentive System and the Measures National Intellectual Property Demonstration Enterprise; at the

for Rewarding Scientific Research Achievements. For different provincial and ministerial levels it also holds important certifica-

types of rewards achievements are evaluated and graded based tions such as Engineering Technology Center Enterprise Technol-

on dimensions such as innovativeness and degree of difficulty ogy Center and Industrial Design Center. In addition the Compa-

with reward coefficients determined accordingly thereby effec- ny operates a nationally CNAS-accredited testing laboratory and

tively mobilizing employees' enthusiasm for technological a postdoctoral research workstation. These platforms collectively

innovation through substantive incentives. form comprehensive support across the entire innovation

process continuously consolidating the Company's technologi-

Patent reward cal leadership and innovation advantages within the industry.Project reward Key Performance

As of the end of the Reporting Period

Proposal reward

Reward types ? entities of the Company and its subsidiaries had

Technological innovation and

transformation reward been recognized as High and New Technology Enterpris-

es;

Intellectual property

implementation reward ? specialized and sophisticated SME has also been

Scientific research achievement

transformation reward cultivated all of which have received relevant munici-

pal-level or higher recognitions.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Participation in Standard Development Presentation of Innovation Achievements

Technology-Enabled Health Products

The Company deeply participates in the formulation of national and industry standards particularly leading the development of

multiple key standards in the kitchen and bathroom sector. Leveraging profound technological accumulation the Company has Solex deeply understands users' core needs with intelligent

successfully translated practical experience into high-standard industry norms. Meanwhile as an important industry participant health-oriented and green development as its core R&D direc-

the Company actively engages in industry exchange activities consolidating collective industry wisdom and jointly leading tech- tion. Adhering to collaborative innovation across the industrial

nological upgrades and quality advancement within the sector. The two national standards in which the Company participated chain and focusing on product quality the Company breaks

namely GB/T ?????—???? General Technical Requirements for Kitchen and Sanitary Ware Fittings and GB/T ?????—???? Quality through the limitations of traditional products that merely meet

Grading of Consumer Products—Kitchen and Sanitary Ware Fittings have been officially implemented. basic living needs drives product upgrades through innovation

and is committed to creating healthy environmentally friendly

Key Performance and energy-efficient lifestyle experiences for consumers. During

the Reporting Period the Company received customer innova-

As of the end of the Reporting Period tion awards and the Aurora Photocatalytic Toothbrush and

Nimble Side-Spray Lift Rod won the ???? German iF Design

the Company had participated in the formulation of ?? standards Award.including ?? national standards ?? industry standards ? group standards and ? local standards.Among them ? industry standards compiled by Solex during the Reporting Period remain under revision.Case Study: The Seventh Member Representative Congress of the China National Hardware Association

In December ???? the Company attended the Seventh Member Representative Congress of the China Nation-

al Hardware Association. During the conference Company representatives listened to reports and speeches

on topics including industry development trends technological innovation and green transformation. In

recognition of its contributions and influence in relevant fields the Company was elected as a Vice Chairman

Unit of the Seventh Council at the conference. Through participation in this significant industry event the

At the Delta ???? Supplier Conference At the Blanco ???? Supplier Confer-

Company further grasped policy orientations and cutting-edge developments strengthened exchanges with the Company received ence the Company received

industry partners and created favorable conditions for promoting supply chain collaborative innovation and the "New Product Development the "Innovation Award"

sustainable development practices. Innovation Award"???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

been successfully applied to multiple products including intelli-

Case Study: Adaptive Water Spray gent water leakage monitors intelligent showers and visual

This adaptive water spray product adopts advanced water-saving technology to ensure that under varying water ice-point hair removal devices.pressure environments the output flow remains precisely and stably within a preset water-saving range. It not

only meets China's highest Level ? water efficiency standard but its water impact force and spray coverage also

comply with international WaterSense certification standards. The core spray technology achieves dynamic adap- Case Study: Intelligent Health Shower—Intelligent

tation to water pressure: Under low pressure the spray area and water output are small while maintaining strong Showerhead

impact; under high pressure the spray area increases and the impact softens effectively addressing the common The intelligent showerhead under the Intelligent Health Shower

issues of insufficient impact in low-pressure regions and excessive impact in high-pressure regions thereby deliv- UC category is equipped with millimeter-wave radar to monitor

ering a stable and superior shower experience across diverse environments. human position and movement status. Relying on multimodal

perception technology it can detect in real time whether the

human body is within an effective area; combined with

gyroscope data the system intelligently determines whether the

Case Study: Aurora Photocatalytic Toothbrush

user has left the shower area and automatically adjusts water

The Aurora Photocatalytic Toothbrush is a new product developed by the Company to enhance oral health. The flow to achieve water-saving effects. At the same time leverag-

product embeds photocatalytic particles within the bristles which under strong ultraviolet light catalysis gener- ing few-shot learning technology the system requires only a

ate free radicals that disrupt bacterial cell structures to achieve deep sterilization effectively reducing the small amount of labeled data to accurately recognize user

incidence of oral diseases. Its breakthrough photocatalytic technology overturns traditional ultrasonic and behavior further optimizing the responsiveness and efficiency

mechanical vibration cleaning modes constructing an innovative tooth cleaning and protection system that of water flow adjustment. In addition lightweight optimization

ensures effective cleaning while providing users with an efficient and comfortable brushing experience thereby technologies are applied at the technical end to compress and

genuinely enhancing the quality and satisfaction of oral care. fine-tune models ensuring that devices can achieve efficient

and sustained operation under low-power conditions.Digital Core Technologies

The Company closely aligns with digital application deployment to advance core technology R&D deeply cultivating key multimodal

algorithm technologies for home health and is committed to providing comprehensive solutions for health monitoring and manage-

ment in household environments. The technological core encompasses three dimensions multimodal perception few-shot learning

and lightweight optimization which synergistically construct an efficient intelligent and cost-effective AIoT health solution: Multi-

modal perception ensures comprehensive and integrated data sources; few-shot learning enables precise prediction under condi-

tions of limited labeled data; and lightweight optimization guarantees low power consumption and efficient operation of algorithms

on terminal devices thereby transforming cutting-edge algorithms into stable and reliable product experiences. This technology has???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Intellectual Property Protection

been formulated to enhance dynamic monitoring of patent risks; during the advancement of R&D projects intellectual property regis-

To standardize the Company's patent management documents tration application and filing are carried out concurrently. At the same time through departmental collaboration engagement of

such as the Patent Management System and the Intellectual external experts and organization of intellectual property training sessions the Company systematically advances intellectual prop-

Property Archives Management System have been formulated erty due diligence and awareness enhancement continuously strengthening full-process intellectual property management capabili-

and implemented with the Intellectual Property Center assum- ties.ing overall responsibility for the daily management of patents

trademarks and other intellectual property rights. Meanwhile Key Performance

the Company has established annual patent performance

assessment and evaluation indicators incorporating them into During the Reporting Period

departmental and responsible persons' performance appraisals the Company added ??? new patents and filed ??? patent applications.to strengthen overall capabilities in intellectual property

creation utilization protection and management. In recogni- As of the end of the Reporting Period

tion of its outstanding practices in the field of intellectual prop-

the number of valid patents per RMB one million of revenue was ?.?? per RMB ? million; the cumulative number of autho-

erty the Company has been accredited as both a "National Intel-

lectual Property Demonstration Enterprise" and a "Xiamen Intel- rized patents reached ???? including ??? invention patents ??? utility model patents

lectual Property Demonstration Enterprise."

and ??? design patents;

the cumulative number of software copyrights reached ?? with ?.?? software copyrights per RMB ? million of revenue;

and the cumulative number of trademarks reached ??.Top ??

Intellectual Property Enterprises in Xiamen ????

(Ranked ?th) Science and Technology Ethics

The Company places strong emphasis on protecting its own The Company is always driven by innovation and grounded in responsibility. In technology R&D

intellectual property from infringement while strictly avoiding and application we strictly comply with national laws and regulations as well as industry stan-

the risk of infringing upon the intellectual property rights of dards and resolutely prohibit any scientific research activities that violate ethical norms. In the

others. A patent information database has been established and future the Company will continue to optimize its internal management mechanisms adhere to a

the Operational Guidelines for External Patent Databases have Intellectual Property Training sustainable innovation path and is committed to promoting the healthy and orderly development

of the industry.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Product and Service Safety and Quality

Governance

The Company adheres to the policy of "Customer-Centric Continuous Improvement; Technology

Innovation Quality Primacy" and has formulated systems such as the Incoming Material Sampling

Management Specifications the Inspection and Test Control Procedures and the Production Man-

agement Control Procedures. Each business division is equipped with an independent quality man-

agement organization responsible for quality control throughout the entire product lifecycle. As of

the end of the Reporting Period Solex Zhangzhou Solex Solex Vietnam and Bestter Company had

all obtained quality management system certifications.Quality Management System Certification Certificate (Solex as an Example)???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Strategy

Type of Risk/ Description of Risk/ Probability of Impact Impact Value Chain Priority Potential

Response Measures

Opportunity Opportunity Occurrence Magnitude Timeframe Links of Impact Ranking Financial Impact

Unreasonable planning or inaccurate capacity assess- Based on actual production capacity and product charac-

Production

ment may result in failure to complete production Operations Increased teristics production plans are scientifically formulated;

Planning and Medium High Mid-term Medium

tasks on time and delayed product delivery severely operating costs material control personnel are arranged to follow up on

Delivery Risks downstream

affecting the Company's image the implementation of production plans

Based on actual production capacity and product

Strict incoming material sampling inspection plans are

Production characteristics production plans are scientifically

Operations formulated and implemented with designated areas for Process and formulated; material control personnel are arranged to Increased

Low Medium Long-term Medium inspection; identification isolation and disposal process-

Quality follow up on the implementation of production plans. downstream operating costs es for non-conforming products are clarified and

Control Risks This may cause batch quality defects customer

deadlines for corrective action closure are established

complaints and brand reputation damage

The base releases capacity in stages driven by orders

flexibly reallocates orders among domestic and overseas

Production ramp-up at the Vietnam base may fall short

Capacity and bases; establishes an omni-channel inventory sharing

of expectations and insufficient coordination between Decreased

Inventory Low Medium Short-term Operations Medium system sets turnover warning thresholds optimizes

new and existing capacities may lead to inventory operating income

Risks inventory through promotions and reallocations; and

backlog or delayed order delivery

regularly clears obsolete inventory to reduce capital

occupation

In response to global environmental trends the

Increase R&D investment in water-saving and environ-

Green Product Company develops and uses recyclable materials and

Operations Augmented mental protection technologies actively apply for green

Innovation creates low-water-consumption long-life water-saving Medium Medium Long-term High

operating income product certifications and explore environmentally

Opportunities intelligent sanitary products to meet the upgraded downstream

friendly materials and sustainable product design

market demand for sustainable consumer goods

Intelligent By promoting intelligent upgrades of production

Reduced Establish a digital quality control platform and optimize

Manufacturing processes operational efficiency and product quality Medium High Mid-term Operations Medium

operating costs the entire production process

Opportunities stability are enhanced???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Key Performance

Impact Risk and Opportunity Management Metrics and Targets

During the Reporting Period

The Company conducts its operations in accordance with the The Company places great importance on the dynamic manage-

Risk and Opportunity Control Procedures and the Risk Manage- ment of quality objectives. Each subsidiary and business Number of product recalls: ?;

ment Control Procedures clearly defining specific operational division formulates and implements annual quality objectives in Product percent of pass: ??.??%;

requirements for risk avoidance mitigation and acceptance. In accordance with specific business realities ensuring that quality

this process the Quality Department is responsible for organiz- requirements are fully integrated into all aspects of daily opera- Number of annual internal quality audits: ??;

ing the identification and evaluation of internal and external tions thereby continuously enhancing overall quality perfor-

Number of times third-party agencies were engaged for

environmental factors leading the formulation of response mance.plans and supervising their implementation. sampling: ??.Risk and Opportunity Management Process Product and Service Quality Whole-life-cycle Management of Products

Objectives in ???? Achievvement To continuously strengthen quality control the Company has

Risk and An assessment team is established to identify

and analyze risks and opportunities and compile Monthly return loss rate ≤ ?.??% Achieved established systems such as the Incoming Material Inspection Opportunity

Planning assessment and analysis forms. and Testing Control Procedures and the Process Inspection and

Customer complaint handling Testing Control Procedures standardizing key stages from raw

Achieved

timeliness rate: ???% materials to finished products to ensure stable and controlled

Risk and Risk coefficients are calculated based on risk product quality throughout the process. Meanwhile the Compa-

Opportunity severity and frequency of occurrence. When the FOC finished product batch ny attaches great importance to the management and mainte-

Assessment coefficient is excessively high avoidance or acceptance rate ≥ ??.?%

Achieved

mitigation measures must be adopted to reduce nance of production equipment formulating annual mainte-

potential harm. Customer finished product batch nance plans and refined servicing schemes and conducting

acceptance rate ≥ ??.?% Achieved regular professional inspections and maintenance to ensure

Response to Corresponding measures are taken based on

assessment results to reduce or eliminate risks. efficient and stable equipment operation and orderly produc-Risk and

Opportunity tion processes. In addition to strictly control finished product

quality the Company regularly conducts relevant quality testing

Risk and The Quality Department organizes at least one on products and issues reports. Multiple products including

Opportunity system review annually to verify effectiveness shower faucets toilet seats and intelligent toilets are tested in

Review and generate a risk assessment report. strict accordance with authoritative standards to comprehen-

sively ensure stable and reliable product quality.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Product Recall Management

The Company attaches great importance to consumer safety and rights and has established systems such as the Product Recall Work Instruction

and the Product Recall Management System to ensure standardized and fully traceable product recall processes. For medical device products

exported to the United States the Company has additionally formulated the Medical Device Recall Control Procedure to strengthen post-market

safety supervision ensure product traceability and continuously enhance product quality assurance capabilities.Product Recall Management Process

Quality Inspection Report Sales personnel should clearly and specifically fill out the Product Recall Application Form including customer names product names

quantities and the reason for recall;

Full Lifecycle Management Process The sales manager organizes relevant departments and personnel to analyze the cause of the product recall for products without

quality issues and provide handling suggestions;

Incoming Material Inspection

Inspectors verify incoming materials and conduct sampling inspec- The Quality Control Department analyzes the defective products for their root cause writes out handling suggestions executes the

tions according to the quality inspection plan. If the materials Nonconforming Product Control Procedure for non-conforming products and fills out the Corrective and Preventive Action Report;

provided contain hazardous substances it is required to ensure If the recalled product quantity is too large the general manager should convene a management review meeting.that the received materials are accompanied by the supplier's

Environmental Declaration and have undergone third-party Digital Management

sampling and testing prior to inspection; warehouse personnel

The Company actively embraces digital technologies and has established digital management systems such as the OA quality control module

shall process materials within ?? hours and in case of rejection

and rework process system to achieve real-time monitoring and data-based management of production progress and product quality. This not

initiate a return order via the OA system to notify the supplier for

only significantly improves the precision and responsiveness of quality control but also provides reliable data support for process optimization

return.effectively enabling the Company to achieve dual advancement in efficiency improvement and quality assurance.Process Inspection

After inspectors confirm first article inspection qualification

approval is reported to the team leader; operators must conduct Quality Culture Management

self-inspection and mutual inspection identify and isolate defec-

tive products and patrol inspections focus on key and frequently To consolidate the foundation of product quality the Compa-

abnormal processes. ny regularly organizes quality training and skills competitions

each year reinforcing quality awareness among all employ-

Final Inspection

ees and honing professional practical capabilities through

Inspectors conduct sampling according to standards and record

inspection results; if requirements are not met a quality abnor- diverse approaches jointly fostering a work atmosphere that QC Seven Tools Training JC/T???-????

mality handling form is issued and rework is arranged. values quality and pursues excellence.Testing Standard Training???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Key Performance

Case Study: Customer Complaint Handling and

During the Reporting Period Systematic Improvement Case

Number of participants in quality training: ????;Total hours of quality training: ????.??; On November ? ???? a customer

??? reported multiple pull rod fractures Number of quality training sessions: . in the drainage valve model

??T????-???-??? purchased. The

Customer service guarantee Company immediately established

a cross-departmental team for

Management of Customer Complaint investigation and confirmed that the root cause was the

mixing of trial mold adjustment parts into normal production

To improve the customer service governance system the Company has formulated normative documents such as the Feedback and materials; such parts suffered from material shortage and

Complaint Control Procedures and the Customer Complaint Handling Work Instructions promoting cross-functional collaboration insufficient strength due to unstable processes; the outflow

among relevant departments to jointly ensure alignment between product quality and customer needs and comprehensively cause was that pre-shipment full inspection failed to detect

respond to various customer demands. On this basis the Company has also formulated the External Quality Issue Management Proce- the fracture phenomenon. The Company mandatorily isolat-

dures to regulate the full-process handling of external quality issues such as shipment complaints inspection complaints and returns. ed and scrapped all mold adjustment parts and revised the

Upon confirmation of a customer complaint the corresponding quality engineer from the CQS section of the Quality Assurance Parts Inspection Work Instruction to prevent recurrence of

Department is responsible for receiving managing and tracking returned products implementing relevant corrective and preventive similar issues at the institutional and procedural levels.measures and at the beginning of each month categorizing and summarizing customer complaints by product category problem

classification and frequency thereby promoting effective improvement measures by relevant departments to reduce repeat com-

plaint rates and enhance customer satisfaction and product reliability. Key Performance

Business Information Receipt Preliminary Investigation by Quality Assurance Responsibility Determination by Quality Assurance

During the Reporting Period

Implementation of Improvement Plan by Responsible Unit Analysis and Improvement by Responsible Unit Customer complaint rate: ?.??%;

Verification of Implementation Effectiveness by Quality Assurance Standardization Case Closure Filing/Customer Reply Customer complaint resolution rate: ???%

Customer Complaint Response Process (Simplified)???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Customer Service Training Responsible Marketing

The Company attaches great importance to the professional The Company strictly complies with the Advertising Law of the People's Republic of China and the Anti-Unfair Competition Law

capability development of its customer service team and of the People's Republic of China and adheres to principles of integrity and transparency in marketing. On this basis all product

regards high-quality service as the key to earning customer promotional materials are subject to strict review to ensure authenticity and accuracy fulfilling commitments to responsible

trust and consolidating market position. To this end the marketing and eliminating any form of false or misleading information; regular professional training is organized for sales

Company continuously conducts specialized service training personnel with emphasis on compliance marketing standards enhancing the sales team's compliance capabilities; in addition

to enhance the professional competence and practical capa- product performance and proper usage education is provided to customers to safeguard their right to information and reason-

bilities of service personnel. Through systematic training the able use thereby building an honest and compliant marketing ecosystem.team is able to more accurately understand customer needs

and respond to customer requests thereby continuously

optimizing service experience and laying a solid foundation

for long-term and stable customer relationships.Customer Satisfaction

To understand customers' current and future expectations

regarding service quality the Company has formulated the

Customer Satisfaction Survey Procedure. The GCM Depart-

ment coordinates the annual satisfaction survey systemati-

cally collecting customer feedback on key dimensions such as

product quality service experience and delivery timeliness

through questionnaires customer forums and market visits

thereby further improving product quality and enhancing Sales Training

customer satisfaction.Key Performance Key Performance

During the Reporting Period

During the Reporting Period

Total Number of Violations of Regulations and/or Voluntary Codes Concerning Marketing Communication (including

Customer satisfaction: ??.??%

Advertising Promotion and Sponsorship): ?.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Information Security and At the same time the Company has established a systematic

Privacy Protection information security inspection and evaluation mechanism:

conducting security requirement analysis and review during the

Information Security Management information system design stage to ensure compliance with

To enhance information security and privacy management the security principles; completing comprehensive security inspec-

Company follows the fundamental policy of "Active prevention tions before system launch to eliminate vulnerabilities at the

total employee involvement ensuring the security of company source; and implementing regular security scans and assess-

and customer data" and has formulated systems such as the ments during operation and maintenance to identify and

and the Information Security Privacy Management Information Security and Privacy Management Manual mitigate various information security risks. In addition during

Management System Certificate System Certificate

Information Asset Management Rules. An Information Security the Reporting Period the Company completed ? information

Management Committee has been established to coordinate security audit activities through a combination of internal audits

overall work and each department is required to designate no Information Security Risk Management and external third-party audits including ? internal audit and ?

more than two information security specialists to implement external audit.Risk Assessment

management responsibilities at different levels. Focusing on Emergency Response Plans

production and operation customer service and daily manage- The Company has formulated the Information Security and To address information security risks and safeguard the Compa-

ment scenarios the Company strengthens risk control to effec- Privacy Risk Assessment Procedures focusing on identifying ny's information security management level the Company has

tively prevent risks such as information system failures data various risks to important information assets in terms of confi- formulated emergency response systems such as the Informa-

loss and leakage of sensitive information and privacy avoiding dentiality integrity and availability. After each department tion Security Emergency Response Plan and the Information

business interruptions and security incidents and effectively completes the Information Asset and Risk Assessment Form and Security Continuity Management Plan clearly defining grading

safeguarding the security and integrity of operational data. the Privacy Risk Assessment Form the Information Security Man- standards for information security incidents. Meanwhile

During the Reporting Period the Company achieved significant agement Committee consolidates reviews confirms and through organizing information security emergency drills that

results in the construction of its information security manage- archives them and prepares the Information Security Risk simulate sudden scenarios such as data breaches and cyberat-

ment system successfully obtaining ISO ????? Information Assessment Report based on assessment results. The Company tacks the Company tests the feasibility and operability of emer-

Security Management System Certification and ISO ????? Priva- updates information assets and risk assessments annually gency plans enhancing rapid response efficient handling and

cy Information Management System Certification. Based on a investigates potential new risks evaluates the effectiveness of business continuity assurance capabilities in dealing with infor-

comprehensive control system no data security or customer existing control measures and supplements new control mea- mation security incidents and minimizing losses and impacts

information leakage incidents occurred during the Reporting sures as needed to achieve dynamic identification of informa- caused by such incidents.Period. tion security and privacy risks.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Case Study: Information Security Drill Data protection

During the Reporting Period the Company organized a special tabletop drill training for SAP system disaster recovery. Through simula- Regular data backups and availability verification are conducted for

tion of real failure scenarios relevant teams jointly reviewed and confirmed the disaster recovery standard operating procedures (SOP) critical business systems; mechanisms for malware protection and

personnel division of responsibilities and step-by-step accountability and evaluated and confirmed the current Recovery Time Objec- virus elimination programs are established.tive (RTO) and Recovery Point Objective (RPO); this drill training effectively enhanced the coordination and process execution capabili-

ties of the operation and system teams under emergency scenarios. Security awareness training

A personnel security awareness education and training system is

Information Security Practices established and implemented with regular training activities

To comprehensively safeguard the data security of the Company and its stakeholders and prevent unauthorized access to infor- conducted to enhance the organization's overall information

mation the Company has established a multi-layered and comprehensive information security protection system aimed at fully security awareness.enhancing information security management capabilities.Vulnerability scanning and penetration testing

Information Security Measures Implemented

Internal vulnerability scanning systems are utilized for routine

Boundary firewalls core switches Web application firewalls and internet behavior management systems are deployed; network access inspections; periodic penetration testing is conducted in collabora-

authentication is implemented; security antivirus software is activated; security audit and logging systems are installed; and data protection tion with external security service providers.systems are established.Facial recognition access control system

Encrypted communication

Facial recognition access control systems are deployed in critical

IPSEC VPN and SSL VPN networks are self-established between the headquarters campus and various branches to safeguard internal commu- security areas such as archives rooms to strengthen physical access

nication security. control.Secure connections

All external systems use the SSL protocol to establish encrypted connections ensuring secure data transmission.Identity access management

Identity access authorization and periodic audit procedures are implemented; a strict physical access management system for external person-

nel is established to strictly control access to restricted areas.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Key Performance

Case Study: Information Security Training

On August ? ???? the Company organized a specialized

training session on information security and risk preven- During the Reporting Period

tion awareness for relevant employees effectively

The number of relevant data security training sessions conducted: ??;

enhancing their awareness and practical capabilities in

information security protection through a combination of The total hours of training related to data security protection: ???;

lectures and assessments.The number of participants in training: ???;

The average training duration per capita for data security protection: ? hours/person;

The coverage rate of data security protection training: ???%;

Total investment in data security: ???(in RMB ?????).Customer Privacy Protection

The Company places great importance on customer privacy protection and has formulated the Administrative Provisions on the Security Management of Personal Information Processing and the Data

Subject Rights Response Procedures thereby providing institutional safeguards for customer privacy reporting. Prior to collecting customers' personal information the Company provides clear and explic-

it notifications to customers; it strictly limits the scope and scale of privacy data collection implements secondary authorization management for information use related to extended functions and

safeguards customers' lawful rights to cancel accounts and withdraw from services thereby comprehensively regulating the entire process of personal information handling.Key Performance

Number of incidents of information security and privacy protection violations during the Reporting Period: ?.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Supplier Management

Governance

The Company is committed to building a responsible supply chain and has established the Business Partner Development and Management System. The Supply Chain Center of each business

division is responsible for supplier development evaluation periodic review and record maintenance and reviews suppliers' anti-terrorism security assessment reports to ensure that supplier

partners meet standards in quality compliance and sustainability thereby safeguarding supplier robustness and sustainability.Strategy

Type of Risk/ Description of Risk/ Probability of Impact Impact Value Chain Priority Potential

Response Measures

Opportunity Opportunity Occurrence Magnitude Timeframe Links of Impact Ranking Financial Impact

For raw materials with relatively high consumption

Policy adjustments may lead to risks such as restrict- domestically produced model alternatives are verified as

Policy and Increased

ed international trade routes and supply chain Low Medium Mid-term Operations Medium backups and introduced into production in small batches

Legal Risks operating costs

disruptions to address potential uncertainties arising from future

policy changes

Suppliers' outdated technology and insufficient The Quality Department's SQE provides guidance to

Market Increased

quality control may impact product delivery and Medium High Short Operations High suppliers on standards improvement and regularly audits

Risks operating costs

increase the risk of product recalls suppliers' on-site processing procedures

Through the Company's OA system full-process online

Emerging technologies such as the Internet of Things visual management is realized from order issuance label

Technical big data and artificial intelligence provide enterpris- Reduced generation and delivery note issuance to goods receipt

High High Long-term Operations High

opportunities es with opportunities for digital transformation of the operating costs acknowledgment queue-based inspection and

supply chain warehousing inspection thereby enhancing the efficien-

cy and accuracy of information flow

Effective practices in supply chain risk management In public documents such as ESG reports the Company

Reputation can ensure operational continuity and stable Medium and Augmented proactively discloses specific actions and achievements

Medium Low Downstream Low

Opportunities delivery enhancing the Company's reliability and long-term operating income in strengthening supply chain resilience conveying

reputation in the eyes of customers and investors positive management signals to stakeholders???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Impact Risk and Opportunity Management Full Lifecycle Management of Suppliers

Solex is aware that supply chain stability and sustainability are vital to business operations. To this end the Company integrates The Company has established process management covering

ESG principles into supply chain management by establishing and continuously improving corresponding management supplier screening review assessment and exit standard-

processes to control potential risks and seize development opportunities thereby continuously enhancing supply chain resil- ized business partner evaluation procedures promoted

ience and providing critical support for the Company's long-term stability and sustainable development. supplier capability enhancement and deepened cooperation

In ???? the Company continued to strengthen supply chain security and compliance management by conducting regular and built mutually trusting win-win long-term and stable

inspections of business partners' supply chain security systems and organizing suppliers to carry out C-TPAT anti-terrorism supplier relationships.self-inspections and Customs AEO trade security investigations systematically identifying and addressing potential risks and

Selection of Suppliers

striving to collaboratively build a secure supply chain ecosystem with partners.Procurement development personnel collect and assess information

and credit status of potential suppliers through multiple channels

Metrics and Targets screen target suppliers proactively engage with them to examine

cooperation compatibility and ultimately conduct inquiries and cost

The Company has comprehensively extended operational management to all segments of the supply chain. In the future it will analyses to preliminarily determine intended partners.further promote the optimization and universal application of supplier management mechanisms strengthen resilience and Supplier Review

responsiveness across the entire value chain and lay a solid foundation for long-term corporate development. Through cross-departmental collaboration on-site reviews and

comprehensive evaluations are conducted on target suppliers'

Key Performance Indicators Unit ???? capabilities in quality technology service and safety. Upon approv-

Total Number of Suppliers entity ?，??? al they are included in the qualified supplier directory.East China entity ??? Supplier Assessment

South China entity ??? Quality risks are controlled through contracts and procurement

North China entity ?? strategies; suppliers undergo regular performance evaluations and

safety assessments and their credit and operational status are

Central China entity ?? continuously tracked for dynamic management adjustments while

Northeast China entity ? differentiated on-site evaluations are implemented based on materi-

Southwest China entity ? al importance and supplier certification levels.Northwest China entity ? Supplier Exit

Hong Kong Macau and Taiwan entity ? During periodic assessments and evaluations rectification deadlines

are set for unqualified suppliers. Those who meet rectification

The total number of our overseas suppliers was entity ?? requirements may be retained while those who fail to meet

Proportion of Procurement Expenditure from Local Suppliers % ?? standards will have their cooperation qualifications revoked.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Key Performance

Case Study: Procurement Development Process Training

In December ???? the Company conducted a specialized training session on the procurement develop-

ment process for internal procurement development personnel. This training focused on details of During the Reporting Period

quotation work mold development cycles for various categories in project contracting and the dimen-

sional and performance reports required for sample confirmation with on-site questioning used for the signing rate of the Supplier Integrity Agreement

assessment. Following this training all participants gained a deeper understanding and mastery of the was ??%.requirements for each stage of the procurement development process.Green Supply Chain

Digitalization Construction of Supply Chain At the supplier admission stage the Company verifies wheth-

The Company attaches great importance to supply chain digitalization achieving er suppliers are chemical enterprises and checks whether

full-process online and transparent management of procurement through the OA they have formulated internal environmental policies to

bidding system which automatically assigns responsible departments based on mate- ensure that their operations and management comply with

rial types and supports end-to-end collaboration from demand initiation to quotation the Company's environmental access standards. In ???? the OA Bidding System

review. Meanwhile in conjunction with the MES system refined full-process control of subsidiary Zhangzhou Solex was successfully included in the

production scheduling is realized. The incoming material receipt queue-calling system ???? Provincial Green Supply Chain Management Enterprise

optimizes warehousing and logistics efficiency and the implementation of electronic List issued by the Fujian Provincial Department of Industry

supplier contracts enhances collaboration efficiency comprehensively promoting and Information Technology fully demonstrating the Compa-

efficient coordination and digital operation of the supply chain. MES System Scheduling ny's solid achievements in collaborating with upstream and

downstream partners to build a sustainable value chain.Supplier ESG Management

Integrity in the Supply Chain

In basic supply contracts the Company explicitly requires all suppliers to adhere to business ethics strictly comply with

anti-commercial bribery regulations resolutely resist and reject any form of improper benefit exchange and refrain from any

conduct that may harm the Company's interests. In the event of any violation the Company will pursue liability for breach of Provincial Green Supply Zhangzhou Solex

Chain Management Enterprise Creation Exchange Seminar

contract in accordance with contractual provisions and reserves the right to take further legal measures.???? Environmental Social and Governance (ESG) Report Empowering Industry and Creating Enduring Value ??

Responsible Supply Chain

The Company actively advances the construction of a responsible supply chain by prioritizing suppliers that have obtained

Case Study: Opening Ceremony of Solex

environmental and occupational health and safety management system certifications and requiring suppliers to sign environ- Vietnam Base

mental and occupational health and safety commitment letters. At the same time the Company conducts targeted special In October ???? the Company's Vietnam base successfully

assessments on quality management systems and employee rights protection to ensure that suppliers possess reliable quality held a grand opening ceremony and invited representatives

assurance capabilities and compliant operational standards strictly implementing requirements to eliminate child labor and of key domestic suppliers to attend aiming to jointly

safeguard reasonable working hours and fair compensation thereby effectively protecting the legitimate rights and interests of witness the Company's strategic progress in global manu-

supply chain employees. In addition the Company promotes comprehensive improvements among suppliers in green produc- facturing and supply chain capability development further

tion quality control and contract performance capabilities through irregular ESG-dimension supplier training sessions. consolidating strategic partnerships and demonstrating a

Key Performance Indicators Unit ???? firm commitment to coordinated development and shared

growth.Number of Suppliers Certified under Quality Management Systems Units ???

Number of Suppliers Certified under Environmental Management Systems Units ???

Number of Suppliers Certified under Occupational Health and Safety Management Systems Units ???

Number of Suppliers Suspended due to Non-compliance Units ?

Equal Treatment of Small and Medium-Sized

Case Study: Supplier Quality Training

Enterprises

During the Reporting Period the Company conducted a specialized training session for suppliers themed "Quali-

ty Appearance Improvement." The training focused on key aspects such as material appearance standards In strict compliance with the Law of the People's Republic of

defective appearance process control and shipment inspection clarifying quality risks and preventive China on the Promotion of Small and Medium-sized Enterpris-

measures enhancing suppliers' quality awareness and operational standardization laying a foundation for es the Regulations on Ensuring Payments to Small and Medi-

subsequent quality improvement and compliant supply and strengthening the market competitiveness of the um-sized Enterprises and other laws and regulations the

Company's products.Company consistently upholds the principle of equal treat-

Supplier Communication ment of SMEs and makes payments in accordance with the

law and contractual agreements. As of the end of the Report-

Against the backdrop of accelerated restructuring of the global supply chain the Company leveraged the inauguration of its

ing Period neither the Company nor its holding subsidiaries

Vietnam base to deepen cooperation with core suppliers effectively enhancing supply chain resilience and industry reputation.had any overdue payments outstanding to SMEs nor were

In the future the Company will continue to deepen its supply chain strategic layout and build a more competitive global supply

there circumstances where the balance of accounts payable

network providing strong support to address market changes.(including notes payable) exceeded RMB ?? billion or

accounted for more than ??% of total assets.???? Environmental Social and Governance (ESG) Report

Attracting Talent and

Building Unity

Our Philosophy

Solex upholds the cultural values of "Advocating science and

mutual support" consistently placing people-oriented care at

the core attentively safeguarding employee growth and

well-being improving rights protection establishing develop-

ment pathways and striving for the shared growth of employees

and the enterprise.Our Actions

Protection of Employees’ Rights and Interests

Occupational Health and Safety

SDGs???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Protection of Employees’ Rights

and Interests Key Performance Indicators Unit ????

Talent Attraction and Recruitment Total Number of Employees person ????

The Company regards recruitment as an important foundation Percentage of contract workers % ???

for building its talent pipeline and through rigorous and stan- Number of Part-time Employees person ??

dardized full-process recruitment management reserves Number of employees of minority nationalities person ???

high-quality talent for high-quality corporate development. Number of employees with disabilities person ??

Number of Veteran Employees person ??

Recruitment Management Average monthly number of new employees person ???

The Company strictly complies with Average monthly number of employees departed person ???

the Average monthly employee turnover rate % ?%Labor Law of the People's Repub-

lic of China the Labor Contract Law

of the People's Republic of China and Under ?? Hong Kong Overseas?? years old (exclusive) years old Master’s Degree

other relevant laws and regulations Female

Macau and Taiwan

or above ??? Bachelor’s ??? ??

and has formulated internal policies ?，??? persons Degreepersons ?，??? persons ???? persons persons ?such as the General Worker Recruit- person persons

ment System the Human Resources

By Gender By Age By region By Academic

Management System and the Talent Qualification

????

Introduction Management System clearly designating the persons ???? ???? ????

persons persons persons

Human Resources Department as the coordinating management Male ?? to ?? Chinese

body for recruitment responsible for organization coordination (exclusive) years old Mainland Below Bachelor’s

Degree

and supervision throughout the process to ensure that recruit-

ment activities are conducted legally compliantly and in an The Company implements diversified recruitment through multiple channels including online recruitment platforms offline job

orderly manner. In ???? the Company received the "Haicang fairs school-enterprise cooperation headhunting services and internal referrals. Throughout the recruitment process the Company

District Industrial Talent Attraction and Cultivation Contribution adheres to the principles of fairness impartiality and openness in objectively evaluating candidates and selecting the best ensuring

Award." transparency in recruitment and hiring through stages such as resume collection departmental screening written examinations

interviews and employment decisions.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Dimension Key Measures

Online Prohibition of discrimination Provide equal career development opportunities respect diversity and

Promotion

Sessions and bias build barrier-free facilities.University

Employment Employment

Networks Agencies Prohibition of workplace Prohibit any form of harassment including sexual harassment verbal

Internal Recruitment Internal harassment harassment and psychological harassment. The system explicitly prohibits

and External website Application

unnecessary physical contact sexually suggestive words and behaviors

On-site Talent

Recruitment Markets and the creation of a fearful or hostile work environment ensuring that

security measures and other management actions do not constitute

Multi-channel Talent Recruitment Campus Recruitment harassment of employees.Diversity Equality and Inclusivity Strictly prohibit any form of forced labor corporal punishment threats of Prohibit forced labor.financial penalties and inhumane disciplinary measures. Unreasonable

The Company upholds the core values of diversity equality and inclusion and has formulated and

restrictions on employees' normal activities rest or access to medical

implemented the Human Resources Management System as well as supporting systems of its

treatment are prohibited and the use of threats or coercive control to

subsidiaries including the Diversity Equality and Inclusivity (DEI) System and the Anti-Discrimina-

compel employees to work against their will is strictly forbidden ensuring

tion Anti-Harassment and Anti-Abuse Management Specifications. The Company strictly prohibits

that all labor is based on voluntariness and equality.the employment of child labor under the age of ??; in all aspects of recruitment employment com-

pensation and benefits and promotion and development it clearly stipulates that no differential Training and development

treatment shall be imposed on employees based on gender age race religion nationality sexual

orientation disability status or any other personal characteristic striving to create a fair equitable The Company attaches importance to the continuous enhancement of employee capabilities and

safe reliable respectful and inclusive working environment for all employees. During the Report- the accumulation and inheritance of organizational knowledge and has formulated the Training

ing Period the Company did not experience any incidents involving child labor forced labor Management System to provide guidance and normative basis for various training activities. The

discrimination or harassment. Company's training initiatives are closely aligned with business needs. At the end of each year the

Human Resources Center coordinates with various departments to formulate the training plan for

Dimension Key Measures the following year based on actual business requirements which is implemented upon approval.Communication and Establish open communication mechanisms provide multilingual support The Company has established a tiered and graded training system scientifically categorizing train-

Cross-cultural Management and promote mutual respect and conflict resolution. ing structures and employee levels and through a combination of internal instructor cultivation

and the introduction of external professional resources provides employees with multi-dimension-

Training and Awareness Conduct regular diversity and inclusion training and cultivate leaders with

al and phased learning support.Enhancement diversity awareness.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Training Platform

By Structure: Basic Courses Skills Courses Management CoursesBy Level:

Training The Company actively builds a digital learning

Category New Employee Training Courses On-the-job Training Courses Manage- platform providing all employees with convenient

ment Courses Skills Courses and flexible online learning channels that support

knowledge updates and skill enhancement anytime

Training

Content Knowledge Training Skills Training Management Capability Training etc. and anywhere through fragmented time utilization.Cloud Learning Platform

Training

Modes Internal Training External Training

The Company emphasizes the practical effectiveness of training and categorizes training

In-class Internal Training Public Courses External Assignments Study outcomes into four progressive levels: reaction learning behavior and results. The Human

Training

Modes Visits Multimedia/Online Video Learning School-enterprise Cooperation Resources Department together with various departments is responsible for tracking and

etc. evaluating these levels to continuously optimize training quality and empower employee

growth.During the Reporting Period the Company conducted tiered and graded training

programs focusing on new employees high-potential employees and personnel in key

positions implementing three major initiatives—"Xiaosong Camp" "High-Potential Camp"

Training Instructors

and "Position-specific Skills Thematic Training"—and adopting a "theory + practice +

The Company has established an instructor team and formulated the Internal Trainer Man- review" training model. The pass rate for all three training assessments reached ???% with

agement System categorizing instructors into regularly selected and certified instructors and overall satisfaction exceeding ??% effectively promoting participants' capability enhance-

specially appointed instructors based on positions with the Human Resources Center ment and the transformation of training outcomes.uniformly responsible for their selection grading assessment and incentives. The Company

has established rank promotion pathways annual teaching requirements and lecture remu-

neration incentives for instructors and implements dynamic management through annual

evaluations to continuously enhance the professional standards and instructional vitality of

the instructor team.High-Potential Camp Training Xiaosong Camp Training???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Key Performance Indicators Unit ????

Investment in Employee Training RMB ????? ??.?? Compensation and Benefits Management

Total Training Hours hour ?????

Number of training sessions session ??? Compensation Management

Total Number of Persons Trained person ????

Total Number of Persons Trained Person-time ???? The Company attaches great importance to compensation management and has formulated the

Employee training coverage rate % ?? Compensation Management System in accordance with the fundamental principles of remunera-

Average training hours per employee hours/person ?.?? tion based on position individual capability and performance. Fully respecting the differentiated

characteristics of its subsidiaries the Company grants them autonomy in compensation structure

Career Development

design and management within the overarching compensation framework so as to accommodate

The Company has established five major position categories: management functional profession- their unique needs in terms of geographic location regulatory environment and incentive focus.al technical marketing and operational and a career development framework centered on dual In addition the Company actively implements equity incentive schemes to provide long-term

career pathways. It also advances talent pipeline system development through multi-dimensional incentives to senior and middle management as well as core personnel. As of the end of the Report-

evaluation methods such as regular talent reviews Individual Development Plans (IDPs) and com- ing Period a cumulative total of ??? employees had received equity incentives collectively holding

petency and performance reporting assessing and promoting employees based on their compre- ?.??? million shares.hensive performance in professional knowledge professional skills and work achievements there-

by establishing an open and fair promotion mechanism. Refers to the base salary determined according to Annual Annual fixed

In addition the Company actively advocates and supports internal job mobility encouraging the employee’s position capabilities etc. includ- fixed salary

ing basic salary and comprehensive post wage. salary

employees to continuously enhance their comprehensive capabilities through cross-functional

rotations mentorship programs and other mechanisms thereby realizing personal value in posi- Annual Refers to welfare allowances paid in cash mainly including

tions best suited to their strengths. Annual welfare total meal allowances transportation allowances and environment

allowance cash

allowances.income Annual

Core total

Shift Head Section Manager Management Annual variable Includes performance bonuses overtime pay special rewards compensation

Leader Chief Team income and annual on-the-job incentive bonuses etc.Such as social insurance (pension medical unemployment work-related

injury and maternity insurance) housing provident fund annual health

Junior Intermediate Senior Senior Chief Other benefits

check-ups holiday gifts mutual aid fund housing assistance programs

Engineer Engineer Engineer Engineer Engineer

and other employee welfare initiatives.Basic Compensation Structure

Career Development Dual Channel???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Key Performance Annual health check-ups gynecologic examinations special post-specific Health

health checks etc.During the Reporting Period Compassionate grants marriage allowance maternity allowance and Subsidies

??.?? high-temperature allowance% of employees underwent regular performance and career develop-

Dining Provide meal allowances or free meals

ment evaluations.Key Performance

Employee Benefits

The Company strictly complies with national laws and regulations including the Regulations on the During the Reporting Period

National Social Security Fund and the Measures for the Implementation of Paid Annual Leave for the Company achieved ???% coverage of social insurance

Enterprise Employees and has established a diversified employee welfare and protection system.The Company clearly stipulates core employee rights and interests such as working hours manage- with an average of ?.?? days of paid annual leave per employee.ment leave protection and salary subsidies in the Human Resources Management System and

provides comprehensive support for employees' work and life through a people-oriented benefits

framework thereby enhancing their sense of well-being. Performance Management

Performance Appraisal

Bonuses Performance bonus festival bonus R&D bonus etc.To continuously enhance organizational effectiveness the Company has established the Perfor-

Insurance Social insurance contributions as required by the law. mance Evaluation System and built a performance management system centered on aligning

upward with strategic implementation and downward with talent management. The Company

Accommodation Provide housing fund contributions staff dormitories etc.conducts monthly quarterly and annual assessments on a regular basis and sets differentiated

Public holidays special leave leave in lieu personal leave sick leave marriage assessment indicators and weightings for different job categories and levels ensuring alignment

Leave leave maternity leave pregnancy check leave breastfeeding leave paternity between evaluation criteria and job responsibilities work nature and strategic contribution. The

leave bereavement leave work-related injury leave parental leave etc. results of performance appraisals are directly linked to performance bonuses salary adjustments

Education The Company provides opportunities for further education and training and promotion opportunities. Employees with outstanding performance are given priority in

annual excellence selections and special benefits applications thereby providing strong incentives

for value creation.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Appeals and Feedback

Upholding a culture of candor and transparency in performance management the Company has Key Performance

established mechanisms and channels for performance feedback interviews and appeals to

ensure that employees can fully express their views during the performance management process.If an employee has objections to the assessment results or believes they have been treated unfairly During the Reporting Period there were ? labor dispute cases .they may raise the matter level by level during the assessment period or within three days of

becoming aware of the results or directly file an appeal with their department head or the responsi-

ble supervisor. Where an employee considers it inconvenient to appeal through their department

Employee Resignation Management

they may directly submit an appeal to the Human Resources Department.The Company has clearly defined the resignation management process in the Human Resources

Process for Handling Employee Performance Appeals Management System covering key procedures such as work handover asset return financial settle-

Upon receipt of an employee performance appeal assess its timeliness and ment and administrative clearance. Relying on the OA system the Company realizes full-process

decide whether to accept it online approval and progress tracking to ensure that resignation procedures are standardized

efficient and traceable. For key personnel with access to confidential information the Company

Determine handling measures and communicate with the appealing employee implements a declassification period management mechanism. For employees who resign due to

disciplinary violations corresponding measures are taken in accordance with relevant regulations.The Human Resources Department reviews appraisal records and notifies the

department to provide relevant materials For employees eligible for compensation economic compensation is paid in accordance with the

law.Determine handling measures and communicate with the appealing employee Employee Care and Communication

Labor Relations Management Democratic Management

Labor Dispute Management The Company respects employees' rights to information and participation and continuously

improves the enterprise democratic management system with the Employees' Representative

To handle labor disputes in a fair and timely manner and foster harmonious labor relations the Congress as its basic form. It has formulated the General Principles of the Labor Union and the

Company has established a Labor Dispute Mediation Committee and formulated the Organizational Employee Rights Protection System and established the labor union as the working body of the

and Working Regulations of the Labor Dispute Mediation Committee. The Labor Dispute Mediation Employees' Congress responsible for the execution of daily democratic management. The Compa-

Committee consists of both enterprise representatives and employee representatives and resolves ny continues to broaden channels for democratic participation and communication by organizing

conflicts effectively through internal consultation safeguarding employees' lawful rights and inter- forums and setting up employee suggestion boxes to solicit and respond to proposals extensively

ests preventing and reducing labor disputes and promoting the Company's long-term stable collecting employees' opinions and suggestions on living benefits human resources and labor

development. matters production and operations and other aspects and providing active responses.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

In addition the Company conducts satisfaction surveys among Key Performance

different categories of employees covering areas such as corpo-

rate culture and benefits working environment and health and

During the Reporting Period

safety with all satisfaction indicators exceeding ??%. In response

to certain issues identified in the surveys the Company has initiat- the Company assisted ?? employees in need

ed the formulation of corresponding improvement plans to

continuously enhance employee experience and organizational with a total amount of ?.?? (in RMB ?????)provided

effectiveness. Employee Congress in support.Key Performance Indicators Unit ????

Number of employees' congress meetings held session ? Protection of Women's Rights and Interests

Number of proposals reviewed and adopted by the Employees' Congress proposal ?? The Company continues to deepen the protection of women's

Number of projects reviewed and approved by the trade union proposal ?? rights and interests ensuring equal rights and development

Proportion of trade union members to in-service employees % ??.?? opportunities for female employees throughout the entire

Employee Satisfaction % ??.?? process of recruitment compensation and benefits training

and development and career advancement. In recruitment the

Company stipulates that positions suitable for women shall not

Employee Assistance refuse employment on the basis of gender. Within the compen-

To effectively safeguard employees' rights and assist them in coping with financial difficulties sation system the principle of equal pay for equal work is strictly

caused by sudden illness or accidents the Company has established an employee mutual aid implemented to ensure that female employees receive equal

foundation and formulated the remuneration for work of equal value.Solex Employee Mutual Aid Fund Management Measures. The

Foundation's funds are primarily sourced from the Company's initial contribution and voluntary

monthly donations from employees. For eligible employees and their immediate family mem-

bers the Foundation provides varying proportions of medical expense assistance or educational

loan support based on their specific circumstances. During the Reporting Period the Company

carried out employee assistance initiatives in Xiamen Vietnam and other locations providing

solid support for employees and their families and enabling them to work with peace of mind

Assistance for Employees in Vietnam

and live happily.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Employees’ Mental Health

The Company and its subsidiaries attach importance to employees' mental health and emotional

·The Company prohibits assigning female employees to work that endangers their support having established psychological counseling rooms and employee emotional care corners

health and provides comprehensive special protections for female employees to provide professional psychological support and spaces for daily emotional adjustment.during pregnancy maternity and breastfeeding periods.·During pregnancy through the breastfeeding period salaries shall not be

reduced and labor contracts shall not be unilaterally terminated. Statutory rights

such as prenatal check-up leave maternity leave and breastfeeding leave are

Women’s Day Activities

implemented in accordance with the law.·The Company has established a Female Employees Committee to safeguard the

lawful rights and interests of female employees during special periods and has

built a multi-channel communication and supervision mechanism involving

employee representatives union coordination and departmental liaisons Employee Emotional Care Corner Psychological Counseling Room

ensuring that any infringement of women's rights can be effectively reported and

addressed through internal appeal channels. Mother-Baby Room

Employee Activities

Key Performance The Company consistently prioritizes the protection of employees' physical and mental health and

the enhancement of team cohesion. During the Reporting Period the Company and its subsidiaries

focused on employee care and cultural cohesion organizing a wide range of recreational sports

During the Reporting Period and holiday greeting activities including holiday celebrations parent-child interactions sports

the proportion of female managers: ??.??%; competitions summer cooling initiatives and interest club co-building activities demonstrating

genuine care for employees' work and life and strengthening team belonging and overall cohe-

Number of employees who took maternity leave: ??; sion.The Company consistently prioritizes the protection of employees' physical and mental health

?? and the enhancement of team cohesion. During the Reporting Period the Company and its subsid-return rate from maternity leave: %; iaries focused on employee care and cultural cohesion organizing a wide range of recreational

Number of employees who took parental leave: ???; sports and holiday greeting activities including holiday celebrations parent-child interactions

??? sports competitions summer cooling initiatives and interest club co-building activities demon-return rate from parental leave: % strating genuine care for employees' work and life and strengthening team belonging and overall

cohesion.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Occupational Health and Safety

Organizational Structure of the Safety Management Center

Work Safety Management

Tong'an Production Base Deputy Chairman of the

In strict accordance with the Law of the People's Republic of Board of DirectorsHaicang Production Base

China on Work Safety and other relevant laws and regulations

and upholding the principle of "safety first prevention-oriented Changtai Production Base Safety Management

Dragon Boat Festival Activity and comprehensive management" the Company has formulat-

Center

Overseas Production Base

ed the Quality Environment and Occupational Health and

Safety Management System Manual and the Work Safety Objec- Firefighting Technical Expert

Safety Technical Expert

tives and Responsibility Management System. It has also issued a Safety Standard Engineer

series of standardized work safety procedure documents to

provide comprehensive guidance and support for work safety.The Company has established a Safety Management Center as As of the end of the Reporting Period Solex and its subsidiary

Parent-Child Activities its safety management body clearly defining the specific Zhangzhou Solex as well as Bestter had obtained Occupational

responsibilities of each department and member to ensure the Health and Safety Management System certification; additional-

systematic implementation and effective operation of the work ly Solex and Zhangzhou Solex had received Level III Work Safety

safety management system. Standardization certification.To ensure the effective implementation of safety responsibili-

ties the Company has formulated safety assessment standards

and a work safety responsibility list setting detailed assessment

Anniversary Celebration Activities

targets and indicators and clarifying the responsibilities of each

position. By signing work safety target responsibility letters at

each level the Company implements the principle of "whoever

is in charge is responsible" thereby strengthening risk preven-

tion and control at the source and effectively safeguarding

employees' lives and health as well as production safety. Occupational Health and Safety Work Safety Standardization Certificate

Management System Certification

Employee Birthday Party???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Key Performance

Digitalization Construction

The Company actively advances digital development in the

During the Reporting Period field of occupational health and safety by establishing a unified

Investment in safety production: ???.?? (in RMB ?????); safety documentation system and safety information platform

and promoting the deployment of a digital safety management

Investment in work safety as a percentage of operating revenue: ?.??%; platform at its subsidiary Zhangzhou Solex thereby compre-

hensively enhancing the standardization efficiency and risk Safety Information Platform

Work safety responsibility letters signed: ????. control capabilities of safety management.Safety Risk Management

The Company conducts safety risk identification graded assessment and dynamic control across

Occupational Health and Safety Goals all production and operational scenarios. It establishes a list of major risks for key risk points such

as operation sites equipment and facilities operating procedures and personnel behaviors effec-

Annual Target tively preventing various safety accidents.Goals for ???? Achievement

Zero work-related fatalities ? Potential hazards related to production equipment processes environ-Risk

Identification ment and operations are systematically identified on a regular basis and Zero mass safety incidents ? potential safety risks are promptly detected and recorded.Zero occupational diseases (including suspected cases) ?

Zero acute poisoning accidents in production ? Risk The LEC evaluation method is adopted to calculate risk values and classify

Assessment risk levels forming a List of Major Risks to clarify priority control objects.???% compliance rate for occupational hazard testing ???%

???% rectification rate of identified hazards ???%

Corresponding control measures are formulated based on the list and risk

???% special operators licensed ???% Risk levels and are verified and adjusted until risks are under control after

Management

???% employee coverage rate for work safety education and training ???% and Control which they are reviewed approved and communicated to all employees

for learning and implementation.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Identification of Hidden Hazards Emergency Response

The Company always places work safety in a paramount To prevent and control potential accidents and emergencies the Company has formulated the First Aid Plans for Various

position making overall arrangements and strictly Injuries. Subsidiaries Bestter and Zhangzhou Solex have also developed Emergency Response Plans for Work Safety Accidents

requiring all subsidiaries to implement relevant mea- establishing a comprehensive emergency plan system covering general plans special plans and on-site disposal plans and

sures. During the Reporting Period the Company and its setting up corresponding emergency organizational structures to ensure that all emergency work is rule-based and responsi-

subsidiaries conducted comprehensive hazard inspec- bilities are clearly assigned. On this basis the Company and its subsidiaries regularly organize drills to enhance risk preven-

tions. Issues identified in areas such as firefighting facili- tion and emergency response capabilities.ties emergency passages chemical management equip-

ment usage and personal protective equipment were

subject to strict closed-loop rectification and reinforced

communication to all employees ensuring effective risk Case Study: Fire Drill at the Robotics Park

control and continuously enhancing refined safety man- On June ? ???? the Company successfully organized a large-scale comprehensive fire emergency drill at

agement. the Solex Robotics Park. The drill covered multiple components including evacuation indoor firefighting

operations fire suppression and rescue and post-drill summary with approximately ???? employees

Key Performance participating. The drill effectively tested and enhanced employees' practical capabilities in emergency

evacuation initial fire suppression and self- and mutual-rescue. Through review and summary certain

deficiencies in protective actions and adherence to evacuation routes were identified providing a clear

During the Reporting Period

basis for subsequent safety management improvements.Number of safety hazards identified: ????;

Rectification rate for identified hazards: ???%.Case Study: Firefighting and Evacuation Drill

On June ?? ???? the Safety Management Department of Zhangzhou Solex organized a firefighting and evacuation drill. The

activity included simulated fire evacuation and initial fire suppression and lasted ?? minutes. By establishing an on-site

command center coordinating emergency teams and utilizing appropriate firefighting equipment orderly joint response

was achieved. This drill effectively enhanced employees' understanding of firefighting knowledge and improved their equip-

ment operation and emergency escape capabilities successfully achieving the objectives of being "scientific safe orderly

and rapid" and accumulating valuable practical experience.Photos Before and After Rectification of Hazards???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Key Performance

Total number of work-related injuries: ??; Case Study: Firefighting and Evacuation Drill

During the ???? "Work Safety Month" the Company widely

During the Reporting Period Lost workdays due to work-related injuries: promoted safety awareness through banners posters and

The number of safety emergency drills: ??. ????.?? days; exhibition boards and held mobilization meetings to deploy

relevant tasks. The Company organized special activities such

Lost time rate per million working hours: as rewards for hazard identification by all employees and

????.?? cross-inspections among teams. At the same time it conduct-Safety Accident Handling ; ed educational and entertaining activities such as fun safety

The Company and its subsidiaries have formulated stan- Lost Time Injury Ratio (LTIR): ?.??. knowledge relay competitions to reinforce safety learning.dardized emergency response procedures for safety Upon conclusion of the activities advanced individuals and

accidents clearly defining operational requirements for teams were commended effectively fostering a strong culture

each stage including accident reporting on-site prelimi- Construction of Safety Culture of "Everyone Speaks of Safety Everyone Knows Emergency

nary handling injury assessment and graded medical Response" and substantially enhancing employees' safety The Company attaches great importance to occupational health

referral to ensure precise reporting and rapid response awareness and hazard identification capabilities.and safety management and actively fosters a safety culture

at the earliest stage of any safety incident thereby maxi- characterized by full participation and continuous improve-

mizing personnel safety minimizing accident impact ment. Focusing on the theme of "Everyone Speaks of Safety

and strengthening the Company's work safety defense Everyone Knows Emergency Response—Identifying Safety

line. Hazards Around Us" the Company carried out a series of activi-

ties during Work Safety Month. Through thematic lectures

Key Performance poster campaigns firefighting skills competitions and safety

knowledge contests it created a strong atmosphere of full

participation shared responsibility and collective supervision

During the Reporting Period in work safety.Number of Work Safety Accidents: ?;

Number of work-related deaths: ? person;

Work-related fatality rate: ?%;

First Prize in Firefighting Skills Competition???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Key Performance Management of Hazardous Chemicals

The Company has formulated the Chemical Management Mea-

During the Reporting Period sures clarifying management responsibilities and operational

?.?? ????.?? standards for the procurement acceptance storage use and Total investment in safety training: (in RMB ?????);Total hours of safety training: ;

disposal of hazardous chemicals thereby controlling risks at the

Number of safety training sessions: ????;Total participations in safety training: ?????; source and safeguarding operational safety and personnel

health.Employee coverage rate of safety training: ???%.Procurement

User departments transfer the approved Chemical Requisition &

Acceptance Form to the procurement department which conducts

Contractor Safety Management purchasing in accordance with the requirements.Acceptance

To achieve standardized and regulated management of outsourced construction safety the Company has formulated the Solex Safety User departments inspect incoming chemicals in accordance with

and Civilized Construction Management Manual specifying management requirements in five aspects: safety management on-site standards verify packaging validity periods and store qualified chem-

control site protection park fire prevention and civilized construction. Before entering the site construction units must complete icals as required while providing training to relevant operators.qualification review safety training and technical disclosure. During construction they must fulfill their primary safety responsibili- Storage

ties. Construction sites must implement closed management hazardous operations must follow approval and permit procedures Chemicals are stored in segregated zones according to their properties

and protective measures for equipment working at heights and cross-operations must be standardized. The park strictly controls to ensure the effectiveness of firefighting facilities and unobstructed safety passages; hazardous chemical warehouses must be equipped

smoking bans hot work electricity usage and the management of flammable and explosive materials. At the same time construction with alarms explosion-proof lighting and eyewash stations.enclosures material stacking and personnel activity areas are regulated with proper pollution prevention cleaning and change Usage

reporting in place. Personal protective equipment must be worn when handling hazard-

During the Reporting Period the Company strengthened contractor safety management by signing safety notification letters ous chemicals and the working environment must be monitored by

conducting training for external construction personnel and implementing full-process permit management for high-risk operations the epidemic prevention station; any changes to chemicals processes

or the environment must be reviewed by the Quality Assurance

such as work at height temporary electricity use and hot work including pre-operation approval process supervision and post-op- Department and where necessary re-tested.eration acceptance. Handling

In the event of an accident it shall be handled in accordance with the

Emergency Preparedness and Response Control Procedure and the

validity periods of chemicals shall be monitored; expired or waste

chemicals shall be safely disposed of or transferred to professional

institutions based on their environmental hazards.???? Environmental Social and Governance (ESG) Report Attracting Talent and Building Unity ??

Occupational Health Protection

The Company implements the policy of "prevention in the first place and integrating prevention

with control" and has formulated institutional documents such as the Occupational Disease Case Study: Special Training on Occupational Health

Prevention and Control Responsibility System and the Occupational Disease Protective Equipment On October ?? ???? Zhangzhou Solex organized special occupa-

Management System and established an Occupational Health Leadership Group responsible for tional health training for production team leaders covering an

the overall coordination organization and supervision of occupational disease prevention and overview of occupational safety and health classification of

control. Meanwhile the Company identifies occupational health hazard factors based on specific occupational hazard factors enterprise occupational disease

work scenarios and routinely conducts occupational health and safety knowledge training to management and enterprise occupational health management

enhance employees' awareness and capabilities of self-protection. records and maintenance. The training successfully achieved its

expected objectives and effectively enhanced the occupational

· Regularly entrust qualified third-party professional institutions to conduct testing of occupational

health protection awareness and knowledge level of employees

disease hazard factors in the workplace; in relevant positions.· Organize employees to participate in occupational health examinations and establish comprehen-

sive occupational health records to systematically record and track employees' health conditions; Key Performance

· Provide employees with labor protective equipment such as earplugs in accordance with regulations

and ensure proper distribution and management; During the Reporting Period

· Post occupational disease hazard notification cards for sulfuric acid dust noise and other hazards Percentage of special operators licensed: ???%;

in conspicuous locations at workplaces. Investment in work-related injury insurance: ???.?? (in RMB ?????);

Coverage rate of work-related injury insurance for employees: ???%;

Detection rate of occupational disease hazards: ???%;

Coverage rate of physical examinations for employees: ???%;

Number of New Cases of New Occupational Diseases: ?

Employee Physical Notification Card of Occupational

Examination Disease Hazard???? Environmental Social and Governance (ESG) Report

Benefiting the People and

Fulfilling Responsibilities with

Kindness

Our Philosophy

Through diversified initiatives such as cross-border donations

and community elderly care activities Solex actively conveys

warmth and supports community development; at the same

time it effectively carries out employment assistance by provid-

ing job opportunities and training support for impoverished

laborers contributing to rural revitalization through concrete

actions.Our Actions

Public Welfare

Rural Revitalization

SDGs???? Environmental Social and Governance (ESG) Report Benefiting the People and Fulfilling Responsibilities with Kindness ??

Public Welfare

Case Study: "Solex Cup" Campus Sports Public Welfare Initiative

While continuously pursuing business development Solex actively fulfills its corporate social

responsibilities by systematically carrying out public welfare practices in multiple fields including Zhangzhou Solex has continuously supported the development of

educational support assistance for disadvantaged groups and care for the elderly integrating campus sports and assisted Gunan Farm Central Primary School and

social responsibility into corporate operations and demonstrating diversified commitments to Middle School in hosting the "Solex Cup" track and field meets in

social well-being and sustainable development through solid actions. April and December ???? respectively. The Company provided

various material support for the two events including sports

Key Performance uniforms competition prizes audio equipment and event setup

effectively ensuring the smooth conduct of the meets and enriching

students' campus sports life representing a vivid practice of fulfilling

During the Reporting Period

social responsibility and supporting educational public welfare.Total public welfare input: ?.?? (in RMB ?????).Case Study: Fengshuxing Respect-for-the-Elderly Public Welfare Initiative

Case Study: Caring Program for Children in Poverty-Stricken Counties in Vietnam During the Double Ninth Festival in ???? the Company visited

In ???? the Company donated a batch of brand-new bicycles to ?? Fengshuxing in Ming Community to carry out elderly condo-

children in poverty-stricken counties in Vietnam with a total value of lence activities. To meet the elderly's needs for healthy diets

approximately ?.? (in RMB ?????). These bicycles effectively improved the Company donated ??? bottles of traditionally pressed

the children's daily travel conditions facilitating their commute to peanut oil to community seniors with a total value of RMB

school and participation in community activities and alleviating ????. This Double Ninth Festival visit not only delivered festive

family burdens. This donation not only addressed the children's practi- care and blessings to community elders but also conveyed

cal difficulties but also conveyed care and encouragement for their attention to the quality of life of the elderly through practical

healthy growth serving as a concrete manifestation of the Company's supplies reflecting the Company's commitment to promoting

commitment to international public welfare and community develop- the tradition of respecting the elderly and actively fulfilling its

ment. social responsibilities.???? Environmental Social and Governance (ESG) Report Benefiting the People and Fulfilling Responsibilities with Kindness ??

Rural Revitalization

The Company strictly implements the requirements of the Notice by the Ministry of Human Resources and Social Security Ministry of Finance and the State Council Leading Group Office of Poverty Allevia-

tion and Development of Further Improving Employment Poverty Alleviation Work effectively addressing difficulties in employment and job stability among impoverished laborers by providing suitable job

positions and continuous vocational training support. Through proactive employment assistance measures the Company supports the rural revitalization strategy and is committed to returning more

and fairer development achievements to society benefiting people's livelihoods.Key Performance

During the Reporting Period

Number of poverty-alleviation employment

beneficiaries: ???.???? Environmental Social and Governance (ESG) Report Benefiting the People and Fulfilling Responsibilities with Kindness ??

Future Outlook

Solex's ESG outlook for the future centers on deeply integrating sustainable development into its business layout around "Green Responsibility and Innovation" which can be elaborated from three

dimensions:

Environment (E): Deepening Low-Carbon and Green Manufacturing

Production Side: Continuously expand the application of clean energy such as photovoltaics (e.g. the new rooftop photovoltaic projects at the Haicang and Tong'an bases) advance

green infrastructure construction at the overseas factory in Vietnam aiming to reduce energy consumption and carbon emission intensity across all production processes; meanwhile

upgrade the "AI+MES" intelligent manufacturing system to improve resource recycling rates with plans to further increase the classification and recycling rate of solid waste.Product Side: Focus on "green design" for smart kitchen and bathroom products and health hardware prioritize the use of recyclable or low-environmental-impact materials develop

energy-saving intelligent products (such as low-power bathroom systems and water-saving showerheads) and incorporate "low-carbon attributes" into the core indicators of new

product research and development.Social (S): Expanding the Boundaries of Responsibility and Scenario Value

Employee Rights and Interests: Improve the occupational health and safety management system while providing employees with skills training aligned with new businesses such as

robotics and AI to broaden development opportunities;

Social Value: Relying on the elderly care robotics business extend ESG into elderly care scenarios—through mobility-assistance and nursing robots as well as age-friendly kitchen and

bathroom products support smart elderly care in an aging society; at the same time use the Company's industrial parks as pilot sites to promote logistics service robot systems

enhancing operational efficiency and safety in public scenarios.Governance (G): Strengthening Compliance and Transparency

Continuously improve the ESG governance structure leverage the overall coordination role of the Board of Directors and the ESG Committee and refine ESG responsibilities of various

departments (such as risk control and information disclosure);

Deepen the construction of international compliance systems (such as ISO information security and fair competition certifications) to ensure compliant operations of overseas busi-

nesses (such as the Vietnam factory) while enhancing transparency in investor communication and strengthening stakeholder trust.Overall Solex's ESG outlook is to "carry sustainable value through business innovation"—not only practicing environmental responsibility through green manufacturing and low-car-

bon products but also creating social value through new businesses such as elderly care robotics while ensuring long-term steady development through compliant governance.???? Environmental Social and Governance (ESG) Report Annex ??

Annex

Key Performance

Environmental Performance

Performance Indicators Unit ???? ???? ????

Total environmental investment RMB ????? ????.?? ????.?? ????.??

Environmental protection taxes paid RMB ????? ?.?? ?.?? ?.??

Number of environmental incidents case ? ? ?

Photovoltaic power capacity kWh ??????? ??????? ???????.??

Gasoline liters ?????.?? ?????.?? ?????.??

Energy

Consumption Diesel liters ?????.?? ?????.?? ?????.??

Natural Gas ????? m3 ??.?? ??.?? ??.??

Total purchased electricity (Domestic) MWh ?????.?? ?????.?? ?????.??

Water Resource Total water consumption m3 ?????? ?????? ??????

Consumption Recycled water consumption m3 ????? ????? ?????

Waste gas emissions ????? m3 ??????.?? ??????.?? ??????.??

Pollutant Wastewater discharges ????? m3 ??.?? ??.?? ??.??

Emissions Quantity of non-hazardous waste generated ton ????.?? ????.?? ????.??

Quantity of hazardous waste generated ton ????.?? ????.?? ????.??

Social Performance

Performance Indicators Unit ???? ???? ????

Percentage of contract workers % ??? ??? ???

Total number of employees person ???? ???? ????

Number of part-time employees person ?? ?? ??

Employee

Number of employees with disabilities person ?? ?? ??

Performance

Number of employees of minority nationalities person ??? ??? ???

Employee satisfaction % ??.?? ??.?? ??.?????? Environmental Social and Governance (ESG) Report Annex ??

Performance Indicators Unit ???? ???? ????

Proportion of female managers % ??.?? ??.?? ??.??

Protection of Number of employees who took maternity leave person ?? ?? ??

Women's Rights Return rate from maternity leave % ??.?? ??? ??.??

and Interests Number of employees who took parental leave person ??? ??? ???

Return rate from parental leave % ??? ??? ???

Compensation Social insurance coverage rate % ??? ??? ???

and Benefits Percentage of employees underwent regular performance

and career development assessments % ??.?? ??.?? ??.??

Investment in employee training RMB ????? ??.?? ??.?? ??.??

Number of training sessions session ??? ??? ???

Training Total number of employees trained person ???? ???? ????

and Development Total attendance Person-time ???? ???? ????

Total training hours hour ?????.?? ????? ?????

Average training hours per employee per year hours/person ?.?? ?.?? ?.??

Number of work-related deaths person ? ? ?

Occupational Number of security emergency drills session ?? ?? ??

Health and Safety Total hours of safety training hour ????.?? ????.?? ????.??

Number of new cases of new occupational diseases case ? ? ?

R&D investment amount RMB ????? ?????.?? ?????.?? ?????.??

Research

and Innovation Percentage of R&D investment in operating income

%?.???.???.??

Number of R&D personnel person ??? ??? ???

Customer Service Customer satisfaction % ??.?? ??.?? ??.??

Number of relevant training sessions conducted session ? ? ??

Information

Security Number of incidents of information security and privacy

protection violations during the Reporting Period case ? ? ????? Environmental Social and Governance (ESG) Report Annex ??

Performance Indicators Unit ???? ???? ????

Total number of suppliers entity ???? ???? ????

Supply

Chain Management Number of incidents with significant risk

and impact in the supply chain case ? ? ?

Social Welfare Total public welfare input RMB ????? ??.?? ??.?? ?.??

Governance Performance

Performance Indicators Unit ???? ???? ????

General Meeting Total number of General Meeting of Shareholders convened meeting ? ? ?

of Shareholders Number of proposals deliberated proposal ?? ?? ??

Number of members of the Board of Directors person ? ? ?

Board of Directors Number of meetings of the Board of Directors convened meeting ? ? ??

Number of proposals deliberated proposal ?? ?? ??

Remuneration Total pre-tax remuneration for directors officers and RMB ????? ????.?? ????.?? ????.??

Policies supervisors during their term of office from the Company

Number of legal training sessions conducted session ? ? ?

Number of participants in legal training person ??? ?? ??

Compliance and

Number of individuals who signed the integrity commitment letter person ??? ???? ????

Business Ethics

Signing rate of integrity commitment letter % ?.?? ??.?? ??.??

Number of corruption lawsuits filed and concluded case ? ? ????? Environmental Social and Governance (ESG) Report Annex ??

Indexes

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. ?? - Sustainability Report (for Trial Implementation) Topic Index Table

Dimension S/N Topics Corresponding Section

? Response to Climate Change Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Pollutant Emissions Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Waste Disposal Nurturing the Ecosystem and Advancing Sustainably Through Green Development

Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Ecosystem and Biodiversity Protection

Environmental （The Company's investment related to ecological protection is relatively small and does not constitute a material risk.）

? Environmental Compliance Management Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Energy Utilization Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Water Resource Utilization Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Circular Economy Nurturing the Ecosystem and Advancing Sustainably Through Green Development

? Rural Revitalization Benefiting the People and Fulfilling Responsibilities with Kindness（The Company's investment in rural revitalization is relatively small and does not constitute a material risk.）

?? Contribution to Society Benefiting the People and Fulfilling Responsibilities with Kindness（The Company's investment in rural revitalization is relatively small and does not constitute a material risk.）

?? Innovation-driven Empowering Industry and Creating Enduring Value

?? Technology Ethics Empowering Industry and Creating Enduring Value(The company resolutely prohibits any research activities that violate ethical standards and remains committed to prioritizing the governance of technological ethics.）

Social

?? Supply Chain Security Empowering Industry and Creating Enduring Value

Equal Treatment of Small Empowering Industry and Creating Enduring Value

??

and Medium-Sized Enterprises （This disclosure applies to enterprises with accounts payable (including notes payable) exceeding RMB ?? billion or accounting for over ??% of total assets during the reporting period. The Company has no overdue payments to small and medium-sized enterprises.）

?? Product and Service Safety and Quality Empowering Industry and Creating Enduring Value

?? Data Security and Customer Privacy Protection Empowering Industry and Creating Enduring Value

?? Employees Attracting Talent and Building Unity

Sustainable ?? Due Diligence Sustainable Development Governance

Development ?? Communications with Stakeholders Sustainable Development Governance

Related ?? Anti-commercial Bribery and Anti-corruption Building a Solid Governance Foundation with Integrity and Diligence

Governance ?? Anti-unfair Competition Building a Solid Governance Foundation with Integrity and Diligence???? Environmental Social and Governance (ESG) Report Annex ??

Dimension S/N Topics Corresponding Section

?? Low-carbon Products Empowering Industry and Creating Enduring Value

?? Protection of Shareholders’ Rights and Interests Building a Solid Governance Foundation with Integrity and Diligence

Self-Determined ?? Standardized corporate governance Building a Solid Governance Foundation with Integrity and Diligence

Disclosure Topics ?? Tax Compliance Building a Solid Governance Foundation with Integrity and Diligence

?? Risk Management Building a Solid Governance Foundation with Integrity and Diligence

?? ESG Governance Sustainable Development Governance

???? GRI Sustainability Reporting Standards ("GRI Standards") Topic Index Table

Chapters and Sections GRI Sustainability Reporting Standards ("GRI Standards")

About This Report ?-?/?-?/?-?/?-?

Message from the Chairman ?-??

Sustainable Development Highlights in ???? ???-?/???-?/???-?/???-?/???-?

Company Profile ?-?

Business Operations ?-?/?-?

Industry Layout ?-?/?-?

About Solex

Brand Development ?-?

Milestones in ???? ?-?

Major Honors in ???? ?-?

Responsibility Deepening Industry Focus and Strengthening Strategic Layout

Focus-Special Topics Integrating into the Industry for Shared Development ?-?

ESG Management Framework ?-?/?-??/?-??/?-??/?-??

Information Reporting Mechanism ?-?

Sustainable ESG Goals ?-??

Development Governance Due Diligence /

ESG Risk Management /

Materiality Assessment ?-?/?-?/?-?

Communications with Stakeholders ?-?????? Environmental Social and Governance (ESG) Report Annex ??

Chapters and Sections GRI Sustainability Reporting Standards ("GRI Standards")

Corporate Governance ?-?/?-??/?-??/?-??/?-??/?-??/?-??/???-?

Building a Solid Governance Compliance Operation and Risk Management ???-?/???-?

Foundation with Investor Relations Management and Shareholders’ Rights and Interests ?-??/?-??

Integrity and Diligence

Business Ethics ?-??/???-?/???-?/???/?

Response to Climate Change ???-?/???-?/???-?/???-?/???-?

Environmental Compliance Management ?-??

Nurturing the Ecosystem and Resource Utilization ???-?/???-?/???-?/???-?/???-?/???-?/???-?

Advancing Sustainably Pollutant Emissions ???-?/???-?/???-?/???-?

Through Green Development

Implementation of Green Operation /

Protection of Ecosystem and Biodiversity ???-?/???-?

Innovation-driven ???-?

Empowering Industry Product and Service Safety and Quality ???-?/???-?/???-?/???-?

and Creating Enduring Value Information Security and Privacy Protection ???-?

Supplier Management ???-?/???-?/???-?

?-?/???-?/???-?/???-?/

Protection of Employees’ Rights and Interests

Attracting Talent ???-?/???-?/???-?/???-?/???-?

and Building Unity ???-?/???-?/???-?/???-?/???-?/

Occupational Health and Safety ???-?/???-?/???-?/???-?/???-??

Benefiting the People and Public Welfare ???-?/???-?/???-?

Fulfilling Responsibilities with Kindness Rural Revitalization ???-?

Future Outlook / /

Key Performance /

Indexes /

Annex

Assurance Report /

Feedback /???? Environmental Social and Governance (ESG) Report Annex ??

Assurance Report???? Environmental Social and Governance (ESG) Report Annex ???

Feedback

Dear reader

Thank you for reading this report! This is the ???? Environmental Social and Governance (ESG) Report published by Solex. In order to continuously improve our ESG management work and enhance our ability to fulfill social responsibilities we

sincerely hope that you will evaluate this report and provide your valuable opinions.?.Which of the following stakeholders is most relevant to you in relation to Solex

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?.What topics in the report are of most interest to you (Multiple choices)

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Contact information Thank you again for your understanding and support of our work!

Tel.： ????-???????

Email：IRM@solex.cn