Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

TABLE OF

CONTENTS Environment Society

Climate Change Response 16 Safeguarding Employee Rights and Interests 32

01 Notes on the Report Environmental Compliance Management 21 Occupational Health and Safety 45

Discharge of Wastewater Waste Gases and Solid Waste 23 Products and Services 50

03 Message from Autowell Energy Utilization 25 Innovation-Driven Development 62

Water Resource Utilization 27 Win-win Cooperation 73

04 About Autowell Circular Economy 27 Social Contributions 85

Green Operations 28

09 Materiality Assessment Biodiversity Conservation 29

13 Sustainable Development

Governance Arrangements

Governance

Appendix

Corporate Governance 91 ESG Data Table 106

Internal Control and Risk Management 97 Benchmarking Index Table 109

Compliant Operations and Tax Management 99

Anti-commercial Bribery 102

Anti-Unfair Competition 105

2Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Notes on the Report

Reporting Period Organizational Boundary Report Release

This report covers a period from January 1 This report centers on Autowell. Unless This is the second Environmental Social

2024 to December 31 2024. Certain state- otherwise specified the scope of the Re- and Governance (ESG) report released by

ments may be beyond the aforesaid period port is consistent with that of the Com- Wuxi Autowell Technology Co. Ltd.to ensure the comparability of the Report. pany’s annual report.Principles for Preparation

This Report is prepared pursuant to the Rules Governing the Listing of Stocks on the STAR Market of the Shanghai Stock Exchange the Guidelines No. 1 of

the STAR Market of Shanghai Stock Exchange for Self-regulation of Listed Companies—Standardized Operation the Guidelines No. 14 of Shanghai Stock Ex-

change for Self-Regulation of Listed Companies—Sustainability Report (Trial) the Guidelines No. 13 of Shanghai Stock Exchange for Self-Regulation of Listed

Companies—Sustainability Report Preparation the Guidelines on Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0 General Framework) issued

by the China Academy of Social Sciences (CASS) and the United Nations 'Sustainable Development Goals (SDGs) .

01Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Terminology & References

For ease of reading the following terms and references are used in this report:

Abbreviation Full name

ATW the Company our company we Wuxi Autowell Technology Co. Ltd

ATW Intelligent Equipment Wuxi Autowell Technology Co. Ltd，Wuxi Autowell Intelligent Equipment Co. Ltd. a holding subsidiary of the CompanyATW Supply Chain Wuxi Autowell Supply Chain Management Co. Ltd. a wholly-owned subsidiary of the Company

SCEC Wuxi Songci Electromechanical Co. Ltd. a holding subsidiary of the Company

ATW Coshin Wuxi Autowell Coshin Semiconductor Technology Co. Ltd. a holding subsidiary of the Company

ATW XuRi Wuxi Autowell XuRi Technology Co. Ltd. a holding subsidiary of the Company

Leddo Technology Wuxi Leddo Technology Co. Ltd. a holding subsidiary of the Company

Zhiyuan Equipment Wuxi Autowell Zhiyuan Equipment Co. Ltd. a holding subsidiary of the Company

ATW Jiexin Wuxi Autowell Jiexin Technology Co. Ltd. a holding subsidiary of the Company

Polar PV Polar Photovoltaics (Bengbu) Co. Ltd. a wholly-owned subsidiary of the Company

Wuxi Polar Wuxi Polar Photovoltaics Co. Ltd. a holding subsidiary of the Company

Qinhuangdao Zhiyuan Qinhuangdao Autowell Zhiyuan Equipment Co. Ltd. a second-tier subsidiary controlled by the Company

AUTOWELL Japan AUTOWELL Japan Co. Ltd. a wholly-owned subsidiary of the Company

Autowell Singapore Autowell (Singapore) PTE. LTD. a wholly-owned subsidiary of the Company

AUTOWELL Malaysia AUTOWELL (MALAYSIA) SDN. BHD. a second-tier subsidiary controlled by the Company

Information Sources

All qualitative and quantitative information in this Report is sourced from Autowell’s public information internal documentation and relevant statistical data.

02Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Against the backdrop of profound shifts in the global economic landscape Autowell as a lead- with our clients. Looking ahead we will continue to uphold our corporate responsibility forging

ing enterprise in the intelligent equipment sector for photovoltaics lithium-ion batteries and strong partnerships across the ecosystem to jointly build a sustainable and low-carbon industrialsemiconductors remains committed to the philosophy of “innovation-driven and green devel- chain.opment”. We have integrated sustainable development into our corporate strategy and daily

A Letter operations. In 2024 we deepened our efforts in Environmental Social and Governance (ESG)

Actively engaging the public and enhancing our corporate gover-

from areas striving to achieve a synergy between economic benefits and social value. nance transparency

Autowell Staying committed to innovation-driven development and fulfilling the mission of green development We remain committed to an “open transparent and honest” approach to investor commu-

nication ensuring equal access to information for all investors. Through various initiatives suchAmid the cyclical adjustments of the new energy sector in 2024 we upheld our mission of “Buildas performance briefings and investor open days we have provided a platform for in-depthSmart Factory with New Technologies Drive Global Intelligent Manufacturing”. With innova-

exchanges between investors and our management. In addition we have utilized multiple

tion-driven development in mind we remained focused on the solar energy and broader new

channels including our official website WeChat official account and WeChat Channels to share

energy industries and actively promoted green industrial upgrades. By the end of December

updates on our operations R&D progress and products through engaging formats such as visual

2024 products manufactured through our equipment had collectively reduced approximately

infographics and animated short videos. This helps investors gain a comprehensive understand-

993 million tons of carbon emissions. Over the year our comprehensive energy consumption sig-

ing of us while further enhancing our corporate governance transparency. Furthermore we

nificantly decreased by 28% compared to 2023 further accelerating the adoption of green energy

have integrated ESG risk management into strategic decision-making and established a three-

worldwide.line defense risk management system led by the Board of Directors. This framework ensures the

effective implementation of risk management requirements strengthens corporate responsibility

Meanwhile we focus on breakthroughs in core technologies in key fields launching cutting-edge

the accumulative reduction of technology and products such as ultra-high-speed 0BB stringer equipment and crystal growth as our development basis and reinforces our competitive edge.carbon emissions from manu- furnaces for semiconductor silicon parts injecting fresh momentum into the industry’s sus-

factured products by the end of tainable development. We are dedicated to low-carbon transition extensively promoting the Embracing a people-centered approach and commitment to social

2024 adoption of renewable energy advancing R&D on energy-saving technologies and optimizing responsibility

environmental management systems in both our production and office operations. By imple-

993 menting product carbon footprint accounting we have continuously optimized carbon emissions We uphold a people-centered approach and commitment to social responsibility as our core million tons throughout the product lifecycle embedding low-carbon development philosophies into pro- value. We have established a long-term incentive mechanism and placed great emphasis on em-

duction practices and achieving a balance between economic gains and environmental benefits. ployee development aligning individual growth with our progress. Employee well-being remains

our top priority and we continuously optimize benefits and welfare policies to enhance their

the decrease of our annual Collaborating with our partners to build a green industrial ecosys- sense of belonging. We have also provided both financial and emotional support to employees

comprehensive energy con- facing major illnesses accidents or other hardships.tem

sumption compared to 2023Going forward we will continue to pursue our mission of “Build Smart Factory with New Tech-

28% As a true follower of sustainable development we adhere to the principle of “progressing nologies Drive Global Intelligent Manufacturing”. Together with our partners we will drive together with clients and growing alongside suppliers” and have incorporated green develop- high-quality growth in the new energy sector. We firmly believe that only through sustainable

ment philosophies into the entire value chain. By establishing transparent communication mech-

development can we create long-term value and achieve win-win outcomes for both businesses

anisms and strict responsible procurement standards we have empowered suppliers to enhance

and society.their sustainability performance and jointly developed low-carbon intelligent solutions together

03Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Message from Autowell

Company Profile

Autowell Technology Co. Ltd. (Stock Code: maintained a market-leading position due to Basic company information

688516) founded in 2010 is a leading enterprise their cutting-edge technology and have been

in China’s high-end intelligent equipment sector highly recognized by top-tier industry consum-

with a workforce exceeding 4000 employees. Re- ers. Chinese Name 无锡奥特维科技股份有限公司

nowned for its technological innovation prowess

With a forward-looking approach to the new

the Company has been recognized with multiple

energy industry we have successfully devel- English Name

honors including Jiangsu Province’s Small Giant Wuxi Autowell Technology Co.Ltd.oped modules/PACK intelligent production

Enterprise of Science and Technology Poten-

lines achieving stable and large-scale deliver-

tial Unicorn Enterprise in the Southern Jiangsu

ies to mainstream manufacturers. Additionally Date of IPO May 21 2020

Independent Innovation Demonstration Zone

we have actively expanded into the semicon-

and Wuxi Quasi-Unicorn Enterprise. Today we

ductor equipment market. Since the launch of

stand as a highly influential provider of intelligent Stock Exchange & Board STAR Market

our wire bonder serving the semi-conductor

equipment solutions in the photovoltaic (PV)

industry in 2021 we have rapidly gained mar-

new energy lithium battery energy storage and

ket traction and secured mass output orders.semiconductor industries. Key Performance Indicators for 2024

Looking ahead we remain committed to our

Through group-based strategy deployment we

strategy of being driven by both intelligent

have established a diversified business ecosys-

equipment and industry solutions. By continu- Operating Revenue Total Aassets

tem holding specialized subsidiaries such as

ously strengthening technological innovation

ATW Intelligent Equipment SCEC ATW XuRi

we aim to enhance creativity across the indus-

ATW Coshin Leddo Technology and Zhiyuan RMB 9.198 billion RMB14.029 billion

trial chain and provide high-end intelligent

Equipment. This has enabled the formation of a

and integrated equipment solutions to global

comprehensive intelligent equipment portfolio Net Profit attributable to Shareholders Earnings per share(EPS)

clients contributing to the high-quality devel- of the Listed Company

covering critical segments of the industrial val-

opment of the industry.ue chain. In the PV sector our product portfolio

spans the four key manufacturing stages: rod wa- RMB 1.273 billion 4.05 RMB/share

fer cell and module production. Our competitive

products including multi-busbar (MBB) stringers

and wafer inspection systems have consistently

04Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Our Culture

Wherever there is a factory Build Smart Factory with New Competitive Innovation & Leading

there is ATW’s intelligent man- Technologies Drive Global Intelli- Technology; Superior Quality; Effi-

ufacturing system. gent Manufacturing. cient Services; Valuable Trust.Vision Mission Values

04 05Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Our Business

As a renowned intelligent equipment manufacturer in the PV lithium battery and semiconductor sectors ATW’s product portfolio serves the four major segments of the PV industry

chain: rod wafer cell and module. Our flagship products the MBB soldering stringers and wafer inspection system stand out for their strong competitiveness earning widespread

industry recognition and achieving a high market share. We have independently developed the lithium battery module/ intelligent PACK production line winning repeat orders from

well-known enterprises in the industry. In addition our self-developed wire bonder officially launched in 2021 has seen repeat orders. Meanwhile we have continued to expand oth-

er product development in the packaging and testing sectors of the semiconductor industry.Crystal Growth Sys- Wafer Inspection Sys- PV Cell Screen Printing Line MBB PV Cell Soldering Stringer

tem tem

PV Cell Light-induced Annealing Laser Cutter

Laser Marking/Code Furnace

Automatic Crystal

Reading System Auto Bussing Machine

PV business Growth Furnace Passivation Furnace

Wafer Packaging Equip- Layup Machine

Covering four major Rod Wafer ment Cell Intelligent PV Cell Packaging and Module

sectors of the PV Logistics System

High-speed Bonding System

Wafer Automation Pack

industrial chain LEM Equipment Junction Box Welding StationLine

PV Module Laminator

ESS Module/PACK As- Pouch Module/PACK Prismatic Cell EES Module/PACK Cylindrical Cells Module/

sembly Line Assembly Line Assembly Line PACK Assembly Line

Lithium battery

Prismatic Cell EV Module/PACK

Container-type Energy

business Energy Assembly LineStorage System Assem- Pouch Cells

Module & Pack & Storage Prismatic Cylindrical bly Line

Container Automatic Cells Cells

Assembly Line

Full-stack solutions

Laser Cutter Hybrid AOI Machine Soft Solder Die Bonder Aluminum Wire Bonder

Semiconductor

Wafer Cleaning System Epoxy Die Bonder Hybrid Bonder

business

Covering four Dicing AOI Inspec- Die Bond- Wire

major sectors of the tion ing Bonding

packaging & testing

in the semiconductor

industry

06Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Our History

2010201220132014201520162017

ATW was founded Developed the PV cell Public debut of the PV Sales hit RMB 200 mil- Recognized as a national Merged and acquired Successfully broke

soldering stringer stringer lion high-tech enterprise for ATW Intelligent marking the import monopoly

marking the start of the the first time and began entry into the lithium-ion on wafer inspection

PV era to develop overseas busi- battery equipment sec- systems

ness tor

2024202320222021202020192018

AUTOWELL (MALAYSIA) SDN. * Successfully * Completed Established the * Acquired a con- Listed on the Conducted re- Launched the bonder

BHD. was established and hosted SCEC’s construction and Autowell Smart trolling stake in STAR Market search on bonder project entering the

will officially start production put into use the Factory SCEC welding technolo- semiconductor indus-new-generation

in 2025 Malaysia factory will crystal growth phase II work-

* Received the first gy and assembled try

become the first overseas shop building on batch of orders for the first set of system launch

production base Xinhua Road aluminum wire prototypesevent

under the company. bonders

06 07Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Milestones in 2024

Enterprise withFirst “Light of Outstanding CaringOutstanding Wuxi Public Welfare CaringCharity” Caring Enterprise for

Harmonious Labor Labor Day Award

Enterprise Award Enterprise Award

Relations in Wuxi Education Support

Sino-Securities Index Information Drafting Organization for Outstanding Supporter First Prize of 2024 Science Outstanding Enterprise

Top 100 Taxpaying Service (Shanghai) Co. Ltd’s 2023 at the 15th China (Wuxi) and Technology Award the Photovoltaic Wafer in Wuxi’s 465 Modern

Enterprises in Environmental Social and Corporate Recognized by the Jiangsu Slicing

International New

Industry Cluster

Wuxi (2023) Governance (ESG) Comprehensive Machine Association Energy Conference and Mechanical Engineering Development Plan

Rating: BBB Standard ExhibitionSociety

Top 30 Most Valuable Most Promising New

Best Capital Market Most Valuable China Listed

STAR Market Listed Best Capital Energy Listed Company

Communication STAR Market Listed Company

Companies at the 18th Operations Award in the Listed Company

Award Company Yinghua Award

Annual Ranking Reputation Rankings

08

Industry

Social responsibility Governance responsibility Capital marketNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Materiality Assessment

Double Materiality Stakeholder

Analysis Communication

During the preparation of this report the Company 2024 marks the second year of Autowell’s ESG report

referred to the Guidelines No. 14 of Shanghai Stock preparation. In selecting relevant issues for this year

Exchange for Self-Regulation of Listed Companies—Sus- first we conducted an in-depth analysis of global and

tainability Report (Trial) (hereinafter referred to as the regional sustainability trends policy and regulatory de-

Sustainability Reporting Guidelines) and the Guidelines velopments and local challenges including local guide-

lines industry standards and regulatory requirements.No. 13 of Shanghai Stock Exchange for Self-Regulation

Second we reviewed the latest ESG issue lists and

of Listed Companies—Sustainability Report Preparation .weight allocation from domestic and international ESG

Additionally we considered the characteristics of our in- rating agencies for the PV equipment sector and also

dustry actual business operations and business model benchmarked ESG report themes of industry peers to

to identify other significant issues. Ultimately we identi- ensure science-based rigor and industry relevance in our

fied 28 potential ESG-related issues. issue identification. Last we incorporated insights from

stakeholder interviews conducted last year feedback

For the materiality assessment we adopted a double

gathered this year and our internal management status

materiality evaluation framework aligning with our to thoroughly discuss and prioritize material issues.strategic development direction and key concerns of

internal and external stakeholders: Frist we assessed Through this research and communication process

the potential economic social and environmental im- we continue to enhance the practical implementation

of ESG management striving to better integrate stake-

pacts of each issue based on stakeholder survey results

holder expectations into daily operations and deci-

(Impact Materiality); Second we evaluated the risks and

sion-making. This ongoing effort aims to improve our

opportunities each issue may present to our value cre- ESG management capabilities create long-term value

ation through discussions with internal management for all stakeholders and establish a solid foundation for

and external experts (Financial Materiality). our sustainable development.

08 09Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Stakeholders

Shareholders

Employees Clients Suppliers Government Regulators Media Community

and Investors

* Compliant * Product Quality * Supplier manage- * Return on invest- * Compliance * Compliant * Economic per- * Talent em-

protection * Client Service ment ment operations operations formance ployment

of rights and * Business Ethics * Sustainable * Protection of * Tax contribu- * Adherence * Compliant * Public welfare

interests Supply Chain shareholder tions in accor- to regulatory operations activities

* Well-struc- Development rights and inter- dance with law requirements * Development * Community

Expectations tured com- * Business ethics ests * Job creation * Alignment with strategy services

and demands pensation * Corporate gover- * Social contribu- development * Labor and * Environmen-system nance tions policies human rights tal and energy

* Effective * Investor relations * Environmental management

promotion and energy

mechanism management

* Social responsi-

bility

* Grievance * Commitment to * Technical ex- * Disclosure rating * Government * Disclosures * Official website * Official web-

mechanism Quality changes * Earnings brief- forums * Submission * WeChat official site

* Employee * Quality Man- * Supplier visits ings * Receiving gov- of regulatory account * WeChat offi-

activities agement & * ESG training for * Sharehold- ernment visits documents * Media briefings cial account

* Training pro- Inspection suppliers ers'meetings * Community * Learning the * Press confer- * Community

Engagement grams * Responsible * Supplier manage- * Promotional communication latest policies ences activities

and responses * Compensa- Marketing ment system roadshows and regulations * Volunteer tion system * Rapid Response * Supplier Integrity activities

* Promotion * Regular Mainte- * Supplier confer-

mechanism nance ences

* Client visits

* Complaint

Reporting

10Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Conclusion of Materiality Assessment

Issues in 2023 Issues in 2024 Change Reasons for Change

In 2024 based on standard benchmarking policy analysis and peer bench-

Improving client service Client service —— ——

marking the Company identified a total of 28 issues based on the ESG issues

confirmed in 2023 including 10 environmental issues 13 social issues and 5 R&D innovation Innovation-driven development Issue adjusted Partial modification of the issue

governance issues.Intellectual property protection Intellectual property protection —— ——

Green procurement and green supply Supply chain management and

Issue adjusted Partial modification of the issue

chain sustainable procurement

Issues in 2023 Issues in 2024 Change Reasons for Change Employee compensation and benefits

Employee rights and interests Issue adjusted Partial modification of the issue

Addressing climate change and Climate change re- Anti-discrimination and diversity man-

Issue adjusted Partial modification of the issue

carbon emissions sponse agement

Pollutant management Pollutant emissions Issue adjusted Partial modification of the issue Protecting employee health and privacy Occupational health and safety Issue adjusted Partial modification of the issue

Waste and hazardous substances

Waste disposal Issue adjusted Partial modification of the issue Employee training and develop-

management Employee development and training —— ——ment

Training on environmental pro- Environmental compli-

Issue adjusted Partial modification of the issue Information security and privacy protec- Information security and privacy

tection ance management —— ——tion protection

Clean energy consumption Energy utilization Issue adjusted Aligned with SSE Guide’s 21 issues Contributions to industry devel-Industry-university-research cooperation Issue adjusted Partial modification of the issue

opment

Water resource consumption and Water resource utiliza-

Issue adjusted Aligned with SSE Guide’s 21 issues Community contribution and public management tion Social contributions Issue adjusted Partial modification of the issue

welfare activities

—— Circular economy New addition Aligned with SSE Guide’s 21 issues Intelligent development and digital Digital and intelligent develop- Issue adjusted Partial modification of the issue

upgrading ment

Green design

—— Conflict minerals New addition Partial modification of the issue

Green and low-carbon

Green products Issue adjusted Partial modification of the issue

operations ESG governance

Biodiversity protection Corporate governance Issue adjusted Partial modification of the issue

Risk management and internal control

Opportunities in clean

Clean production Issue adjusted Partial modification of the issue

technology innovation Business ethics and anti-corrup-

Anti-corruption and anti-bribery Issue adjusted Partial modification of the issue

tion

Noise management Noise management Issue adjusted Partial modification of the issue

Compliant operations Compliant operations —— ——

Product quality

Product safety and Protection of investor rights and Issue adjusted Partial modification of the issue Shareholders and equity Issue adjusted Partial modification of the issue

quality interests

Work safety

Economic performance and

Sustainable profitability Issue adjusted Partial modification of the issue

market competitiveness

10 11Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Autowell’s material ESG issues for 2024

Environmental issues Social issues Governance issues

* Product safety and quality

* Climate change response * Client service *Corporate governance

* Pollutant emissions * Innovation-driven development *Business ethics and

anti-corruption

* Waste disposal * Intellectual Property Protection

Issues with Issues *Compliant operations

impact sig- with both * Environmental compli- * Supply chain management and

nificance but financial ance management sustainable procurement *Protection of investor

no financial and impact

rights and interests

significance significance * Energy utilization * Employee rights and interests

*Economic performance * Water resource utilization * Occupational health and safety and market competitive-

Issues with Issues with * Circular economy * Employee training and develop- ness

neither financial

financial significance * Green and low-carbon ment

nor impact but no impact

operations

significance significance * Information security and privacy

* Clean technology oppor- protection

tunities * Contributions to industry devel-

* Noise management opment

* Social contributions

* Digital and intelligent develop-

ment

* Conflict minerals

Financial significance to Autowell

12

Innovation-driven development

Product safety and quality

Information security and privacy protection

Supply chain management and sustainable procurement

Employee rights and interests

Corporate governance Client service

Occupational health and safety Intellectual Property Protection

Contributions to industry development

Compliant operations

Business ethics and anti-corruption

Water resource utilization

Clean technology opportunities

Conflict minerals

Circular economy

Employee training and development Energy utilization

Climate change response

Pollutant emissions

Environmental compliance management

Green and low-carbon operations

Waste disposal

Economic performance and market competitiveness

Digital and intelligent development Social contributions

Protection of investor rights and interests

Noise management

Significance to economic social and environmental impactsNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Sustainable Development Governance Arrangements

Sustainable Supreme Deci-

sion-Making Body

Development Decision-Mak-ing Level Board of Directors * Responsible for the overall planning and coordination of ESG matters.Governance Structure

* Oversees and reviews the Company’s ESG strategy goals and

The Company continuously enhances its sustainable annual work plans.development governance framework and has estab-

Strategy and ESG Com-

lished a well-structured system that integrates deci- *

Reports ESG execution outcomes and major plans to the Board of

mittee

sion-making management layers as well as compre- Directors.hensive sustainability governance system. The Board The Audit Committee participates in the review and decision-making processes related to ESG

of Directors serves as the supreme decision-making matters including climate change response and health and safety assurance.Management

body under which the Strategy and ESG Committee

is responsible for supervising ESG strategies and General Management *Responsible for the overall coordination and implementation of

goals while the Audit Committee participates in de- office ESG-related initiatives.cision-making on key ESG issues. The General Man-

agement Office is in charge of overall coordinations

with clearly defined responsibilities across functional

departments. The ESG Working Group under the General Manage-

ment Depart- Subsidiaries Legal Depart-

*Responsible for the execution and implementation

General Management Department is responsible for ment ment of specific ESG issues.execution and each subsidiary is tasked with imple-

menting specific initiatives.Implementation Heads of the General Management Department and ESG-related functions in

each subsidiary

ESG Working The environmental safety and health specialist is in charge of the Company’s responsibilities and external

Group

relations

The Securities Investment Department is responsible for the Company’s governance matters.

12 13Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Sustainable Development- Supervision and Assessment Mechanism

Related Information Reporting Key Measures Description

The Company has established a robust information reporting mechanism reg-

ularly publishing ESG Reports and Quality Enhancement Efficiency Improve- Information Each subsidiary gathers selects and reports original internal and external risk-related informa-

ment and Return Prioritization Reports to comprehensively disclose progress Collection tion.and achievements in sustainable development.The ESG Report outlines our strategic goals implementation measures and

' Risk The dedicated risk management department leads the efforts in identifying various operational performance in ESG areas addressing stakeholders concerns about sustain- and managerial risks by conducting surveys interviews process analyses and management

ability. The Quality Enhancement Efficiency Improvement and Return Prioriti- Identification benchmarking eventually developing a general risk list.zation Report focuses on areas such as improving operational efficiency value

creation and shareholder returns showcasing the Company’s commitments

and practices in high-quality development.The dedicated risk management department organizes efforts in conducting qualitative and

The two types of reports complement each other reflecting both our long- Risk quantitative assessments of the identified risks based on their likelihood and impact. Risks are

term sustainability planning and our emphasis on and balanced approach to Assessment classified into four levels: significant high medium and low forming a risk map to prioritize key

stakeholder interests including shareholders employees clients and society. risks requiring attention and control.Through transparent and systematic disclosures we strengthen communica-

tion and trust with our stakeholders laying a solid foundation for achieving our

sustainability goals. The dedicated risk management department leads the efforts in formulating differentiated

management strategies for various risks implementing mitigation measures such as risk

Sustainable Development avoidance and risk control to effectively manage risks.Oversight and Assessment Significant/High risks: We typically adopt a risk portfolio strategy which includes risk

Mechanism avoidance risk transfer and risk control. Preventive measures are taken at the source to reduce both the likelihood and impact of risks;Risk

Management Medium risks: For risks which are less likely to occur but have large impacts we pri-

In daily operations the Company has established a comprehensive risk iden-

Strategies marily adopt risk transfer measures such as insurance subcontracting and outsourc-

tification and response process implementing effective measures to achieve

ing; For risks which are very likely to occur but have small impacts we mainly employ

effective risk control. The dedicated risk management department leads qual-

risk control measures such as strengthening internal control processes;

itative and quantitative evaluations of the risks from the general list based on

their likelihood and impact. The Board of Directors provides comprehensive Low risks: We generally implement risk acceptance or assumption minimizing redun-

oversight of the Company’s sustainability-related impacts risks and opportu- dant control measures to optimize management costs.nities by approving strategies setting goals monitoring execution reviewing

performance and ensuring transparent communication. This helps us achieve a

balance between economic benefits and social value.

14Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Core Competitiveness Risks Operational Risks

Risk of mismatch

between R&D Risk of loss of key

Risk of failure in R&D or result Risk of technology infringe- Risk of adverse changes in Risk of failure in our business Contract execution

deployment and personnel and tech-

commercialization ment major clients decision-making risk

downstream indus- nical confidentiality

try trends

The rapid techno- We place great importance on We have been recog- We have built a strong portfo- Our revenue is primarily Our business decision-making In 2024 we expe-

logical iteration in R&D and innovation. In 2024 we nized as a national lio of core technologies that derived from the silicon is affected by technology devel- rienced situations

the downstream continued to increase our R&D high-tech enterprise have been successfully ap- wafer cell and module opment trends policy changes where some clients

industries requires investment which has played since 2015 and have plied in our product R&D. As production segments of market competition environment canceled or delayed

substantial re- a crucial role in enhancing the built a robust portfo- of December 31 2024 we had the PV industry chain macroeconomic fluctuations and the execution of

source investment performance of our existing lio of technologies. held a total of 1971 granted which are highly concen- other factors. Our products are contracts. In the

to study relevant products and developing new This technological IPRs including 260 invention trated. In 2024 PV module mainly used in PV new energy future the risk of

processes and ones. However there is a risk of foundation plays a patents 1368 utility model prices dropped signifi- vehicles and other emerging in- non-performance by

markets. If our failure in R&D or result commer- crucial role in our patents 128 software copy- cantly leading to a decline dustries which changes rapidly in PV clients is expect-

R&D deployment cialization. ongoing operations. rights and 6 design patents. in the profitability of our industry development. This brings ed to rise. If fluctua-

does not align with Our core technol- clients. As a result some certain instability making our tions in the down-

downstream indus- Moving forward we will contin- ogies are primarily If any of these patents or IPRs clients faced greater op- business decision-making more stream industry

try trends it may ue to make significant invest- and independently are later found to be invalid if erational difficulties with difficult. lead to significant

lead to issues such ments in the R&D of innovative developed by our the relevant authorities deter- some incurring losses adverse changes in

as wasted R&D technologies. Should we face in-house R&D team mine that we have committed and a few even entering Our cooperation with other enter- the operating condi-

resources missed a high number of R&D failures with key technical patent or technology infringe- bankruptcy or restructur- prises through strategic invest- tions of our clients

opportunities or or fail to successfully commer- personnel playing ment or if other companies ing. If the PV industry does ment R&D cooperation and other with active orders

even the loss of cialize our R&D results due to a pivotal role in the initiate IPR lawsuits against us not recover within the forms allows us to quickly seize resulting in slow-

market position in factors such as technological R&D process. A loss as part of their business strat- next 12 months there may market opportunities and enhance er-than-expected

specific segments challenges economic feasibility of core personnel or egies we may not only face be additional risks such our core competitiveness in the contract execution

thereby affecting or shifts in market demand it a significant breach litigation or disputes but also as client bankruptcies. medium- and long-term. However progress or even

our competitive- could result in additional costs of technological see an impact on the sales of These factors could have such strategic investments R&D a halt in execution

ness and long-term for the current period impacting confidentiality could our products thus adversely a substantial negative cooperation and other actions or contract cancel-

profitability. our profitability. Furthermore negatively impact affecting our operational impact on our operational pose higher requirements for our lations our opera-

such outcomes may have vary- our operations. performance. performance. business decision-making. tional performance

ing degrees of negative impact could be negatively

on our future development Therefore although we have impacted.prospects. taken measures to make our deci-

sion-making more science-based

and rational we cannot exclude

the possibility that there may be

mistakes in this regard and thus

cause adverse impacts on us.

1415

Risk Points Risk Descriptions and ResponsesNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Financial Risks Industry Risk Macro Environment Risk

Risk of significant changes

Accounts receivable recov- Risk of market demand in core technologies or tech- Risk of increased tariffs on Risk of exchange rate

Inventory impairment risk Risk of tax incentives

ery risk decline nical routes in downstream product exports fluctuation

industries

We hold relatively large We have a large volume The equipment products we manufacture are operated During the reporting period We are primarily engaged in We operate in the specialized We engage in both

inventories a significant of accounts receivable. and controlled through our independently developed and our clients were primarily the R&D design produc- equipment manufacturing in- export and import

portion of which consists During the reporting peri- designed software. As of December 31 2024 we had ob- from the PV and energy tion and sales of high- dustry with overseas orders activities with

of issued goods. This is od some downstream cli- tained 128 computer software copyrights and 91 software storage battery industries. If end intelligent equipment accounting for more than the valuation and

primarily due to the long ents failed to make timely products related to such software. In accordance with the there are significant adverse with major downstream 30% of total sales in 2024. settlement of trans-

installation commission- payments as per the con- Notice on Value-added Tax Policy for Software Products changes in relevant indus- industries including the Changes in tariffs in interna- actions primarily

ing and trial operation tract resulting in overdue (Finance and Tax [2011] No. 100) and other relevant trial policies international crystalline silicon PV indus- tional markets will signifi- in U.S. dollars. Thecycles of our equipment accounts. With the rise of documents our self-developed operating system software trade policies or other reg- try the electrochemical cantly impact our operations. U.S.’s “reciprocalproducts from issuance loss-making enterprises and other software embedded in the equipment we sell ulations it could negatively energy storage industry In recent years the U.S. has tariffs” have a great

to client acceptance. in the PV industry and are eligible for the instant VAT refund policy. We were recog- impact the PV and new and the semiconductor implemented measures impact on the yuan

Although we have made the deterioration of the nized as a high-tech enterprise in 2015 and successfully energy vehicle industries packaging and testing in- such as “export bans” and exchange rate. As

provisions for potential operating conditions of passed the review of high-tech enterprise recognition in which would in turn affect dustry. There is a potential “reciprocal tariffs” which the U.S. dollar fluctu-

inventory impairment in our clients it is likely that 2021 for the first time (Certificate No.: GR202132005383) our sales and operational risk of significant changes may fuel global trade pro- ates our settlements

accordance with account- both accounts receivable followed by another successful review in 2024 (Certificate performance. Therefore if in the core technologies or tectionism and create trade in other currencies

ing policies and based on and overdue accounts No.: GR202432014252). According to the Administrative demand in these industries technical pathways of these barriers thus affecting our may increase

the actual condition of our will continue to increase Measures for the Recognition of High-tech Enterprises the declines especially in the downstream industries. sales. The imposition of high leading to a broader

inventories changes in the in the future. If we are qualification of high-tech enterprises is valid for three years PV sector or if excess ca- tariffs on Southeast Asian range of currencies

market environment or unable to recover them from the date of certification and companies must apply pacity clearance progresses If such significant changes countries including Vietnam involved. Unfavor-

other unforeseen circum- in a timely manner or if for re-evaluation before the qualification expires. According more slowly than expected occur it could alter the sup- and Cambodia as part of able changes in

stances may hinder the some amounts remain to the relevant tax incentives for high-tech enterprises demand for our equipment ply and demand dynamics the “reciprocal tariff” exchange rates could

successful sale of these unrecoverable this could we enjoy a preferential enterprise income tax rate of 15% could decrease having a for our existing products policy could notably impact adversely affect our

inventories or lead to a negatively impact our during the applicable period. If these tax incentives are material adverse effect on which may negatively im- the demand for equipment product exports and

significant drop in their operational performance canceled reduced or if there is a material adverse change our production and opera- pact or even fundamentally from our clients'factories in overall operational

price. This exposes us to cash flow and other areas. in our high-tech enterprise qualification our operational tions. alter our production and Southeast Asia. performance.the inventory impairment performance could be negatively impacted. operations.risk.

16

Risk Points Risk Descriptions and ResponsesNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Response to Issues Align with the SDGs

* Climate Change Response * Water Resource Utilization

Environmental Compliance

Environment * * Circular EconomyManagement * Green Operations* Discharge of Wastewater Waste

Gases and Solid Waste * Biodiversity Conservation

* Energy Utilization

16 17Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Climate Change Response

Climate Change Governance

At Autowell we uphold a green and environmentally friendly philosophy to drive We have established a carbon emissions management structure with the General Manager

industry development. We actively support the“ Dual Carbon” goal (i.e. peaking as the leader the management representatives and the General Management Department

carbon emissions by 2030 and achieving carbon neutrality by 2060) and climate responsible for implementation and various functional departments executing specific initia-

change initiatives by integrating climate governance into our corporate manage- tives. We continuously improve our corporate carbon emissions management system foster

ment framework and implementing a top-down approach to the governance of company-wide participation and continuously promote clean low-carbon and high-quality

climate change risks. development.*Determine the overall direction of work on environmental protection.*Conduct regular reviews of environmental management documents.Top Executive

* Identify consolidate and evaluate GHG emission sources; and pro-

* Organize and lead the identification of GHG emission General Manager vide guidance on digital inspections across departments.sources. *

* Establish implement and maintain the environmental Implementation Coordination

Collect consolidate and calculate GHG emissions; and compile

and manage GHG emission reports.management system and GHG management documen- Management General Management

tation in accordance with ISO 14064 standards. Representatives Department * Draft review revise and distribute GHG management documents...............Execution

Other Functional Departments

* Identify GHG emission sources within their respective departments.* Implement emission reduction projects and control GHG emissions in production and daily operations.* Provide the department’s GHG inventory data records and lists of GHG-related equipment.Autowell’s carbon emissions management structure

18Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Climate Change Strategy

Climate Greenhouse gas (GHG)

Scenario Description Emissions Climate Impacts

Climate Scenario Analysis

This scenario assumes global eco-

Climate scenario analysis is a method used to assess climate risks High-Emission By 2100 global average temperatures may This scenario may lead to more frequent nomic growth relies on high-carbon

Scenario rise by 4.3° C to 6.7° C. CO missions peak extreme weather events rising sea levels and opportunities by modeling future outcomes under different as- energy sources such as fossil fuels 2e

(SSP5-8.5) around 2050 and continue to rise thereaf- ecosystem degradation and severe im-sumptions and analyzing response strategies. Autowell follows GHG with rapidly increasing energy ter. pacts on agriculture and water resources.demand.concentration pathway scenarios described by the UN Intergovern-

mental Panel on Climate Change (IPCC) specifically the SSP5-8.5

(high-emission) scenario and the SSP1-2.6 (low-emission) scenario

This scenario assumes global com- By 2100 global temperatures are project- This scenario helps keep global warming

seeking to analyze emission reduction targets and resilience mea- Low-Emission mitment to aggressive emissions ed to rise by approximately 1.5° C. CO2 at a lower level reducing the frequency

sures under a low-emission scenario laying the groundwork for de- Scenario reduction fostering renewable ener- emissions reach net zero around 2050 and severity of extreme weather events

veloping climate risk assessment tools. (SSP1-2.6) gy development and technological potentially leading to net negative emis- and mitigating negative impacts on

innovation. sions. ecosystems and human societies.Climate Risk and Opportunity Identification

Risk Type Climate Change-Re-lated Risks Potential Impact

Impact Impact Lev-

Duration el Mitigation Measures

Extreme weather events (e.g. typhoons heavy rain floods Establish emergency plans and response mechanisms for extreme

Extreme Weather Events (e.g.and heatwaves) may cause damage to production facilities weather set up weather monitoring systems increase material

Typhoons heavy rain floods and Short-term Medium

disrupt supply chains and increase maintenance costs and reserves strengthen key facilities etc. to enhance our capacity to

heatwaves)

operational delays. cope with extreme weather and reduce losses from such events.Physical Risks (high-emission

scenario)

According to the IPCC global sea levels may rise by 0.3 me-

ters to 1 meter by 2100. Sea level rise leads to saltwater intru- Continuously promote diversified water resource usage increase

Medium- to

Rising sea levels sion impacting water resources in inland areas increasing Low water recycling efficiency and reduce dependence on freshwater

long-term

freshwater salinity reducing factory production efficiency resources.and complicating wastewater disposal.

18 19Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Risk Type Climate Change-Re- Impact lated Risks Potential Impact Duration Impact Level Mitigation Measures

As global carbon reduction goals advance governments con- Stay updated and actively respond to domestic and internation-

tinuously introduce stricter carbon emission regulations and al climate environmental and carbon-related laws and policy

policies such as carbon pricing mechanisms carbon tariffs changes.Policy risks and opportunities Short-term Medium

and carbon labeling. Overseas business operations will face Expand the scope of product carbon footprint certification

stricter compliance requirements and oversight increasing monitor carbon tariff policies assess export costs and adjust

operational costs abroad. business plans accordingly.As management measures such as carbon emissions and

carbon trading become more refined and are being imple- We regularly conduct carbon emission verification and account-

Environmental disclosure challeng- mented national and regional regulators exchanges capital Medium- to ing in line with the ISO 14064 carbon accounting system and

High

es markets and other parties are proposing higher requirements long-term disclose relevant GHG emissions information in our annual ESG

for environmental disclosure. We may face compliance risks report.due to incomplete or untimely environmental disclosures.Downstream clients are increasingly inclined towards We conduct product carbon footprint analysis monitor emis-

low-carbon products. If we fail to meet client expectations for Medium- to sion reduction effects throughout the product lifecycle and

Transition Risks (low-emission Market risks and opportunities Medium

energy efficiency and sustainability we may face client attri- long-term continue to reduce product carbon emissions. In the future we

scenario)

tion leading to reduced revenue. will persist in green product design and manufacturing.To effectively control product carbon emissions there is a

We continuously optimize production processes by establishing

need to improve the efficiency of environmental process

an energy consumption monitoring system carrying out ener-

development enhance the use of new technologies and

Technology risks and opportunities Short-term Low gy-saving and emission-reduction process transformations and

upgrade clean production equipment to meet the demand

continuously reducing product energy consumption and carbon

for low-emission product manufacturing. However this may

emissions.increase operational costs and make R&D more challenging.As regulators investors ESG rating agencies and other We regularly disclose ESG performance actively address stake-

stakeholders increasingly focus on corporate sustainability Medium- to

Reputation risks and opportunities Low holders'concerns and uphold sustainable development philos-

performance poor climate performance could damage our long-term

reputation and performance. ophies to continuously improve our performance.

20Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Climate Change Metrics and Targets

GHG Emissions Management

At Autowell we actively respond to China’s“ Dual Carbon” policy and con- The primary sources of our GHG emissions include purchased electricity natural gas gas-

tinuously promote GHG emission reduction efforts. We conduct annual GHG oline diesel and certain refrigeration equipment. Indirect GHG emissions (Scope 2 emis-

accounting and verifications in accordance with the ISO 14064 standard sions) constitute the largest share of our total emissions primarily resulting from electricity

ensuring precise identification and management of our emissions. In 2024 consumption for operations.we commissioned a third party to conduct GHG verification and released the

2023 GHG Verification Statement providing a referenceable best practice for

carbon emissions management in the specialized equipment manufactur-

ing industry. GHG Emissions Data

12

Indicator Unit 2024

Total GHG emissions tCO2e 2621.25

Scope 1 GHG emissions tCO2e 375.85

Scope 2 GHG emissions tCO2e 2245.40

GHG emission intensity tCO2e/RMB 10000 revenue 0.0028

Note 1: GHG emissions are calculated based on the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Enterpris-

es in Other Industrial Sectors (Trial) issued by the National Development and Reform Commission (NDRC). The electricity emission factor

for purchased electricity is derived from the Announcement on the 2022 Electricity Carbon Emission Factor published by the Ministry of

2023 GHG Verification Statement & Appdenix to the GHG Verification Statement Ecology and Environment in December 2024.

Note 2: The Company conducts an annual GHG verification every May with all official data to be derived from the final verification report.

20 21Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Carbon Emissions Reduction Actions

Energy-saving and

carbon-reduction Continuously optimize production processes promote energy-saving technological upgrades and strengthen energy consumption management during production reducing

equipment upgrades both product energy consumption and GHG emissions.Optimization of the Increase the proportion of clean energy in total energy consumption by installing distributed rooftop PV systems in workshop buildings and PV-powered streetlights in the facto-

energy structure ry area thereby reducing carbon emissions from fossil fuels.Product carbon Establish a product lifecycle rating management system introduce carbon footprint accounting methods conduct carbon footprint analysis for our wafer inspection systems

footprint certification and develop targeted environmental protection improvement measures based on the analysis results to optimize the carbon emissions across the entire product lifecycle.Product carbon footprint certification: contributing to GHG emissions reduction

The Company’s 018F wafer inspection systems boast an extensive lifecycle system boundary covering

five key stages: raw materials manufacturing distribution use and waste disposal. Among these the

carbon emissions from the raw material stage are the most significant reaching 7484.29 kg CO2e

which accounts for over 90% of the total emissions. In light of the high emissions at this stage we ac-

tively identify and assess relevant influencing factors continuously improving green improvement mea-

sures.Product Carbon Footprint Evaluation Certificate

22Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Environmental Compliance Management

Environmental Management System

The Company adheres to the Environmental Protection Law of the People’s Republic of China the Environmental Impact Assessment Law of the People’s Republic of China and

other relevant laws and regulations. We continuously improve our internal environmental management system and strengthen the development of our environmental manage-

ment framework. In 2024 we successfully passed the annual surveillance audit for the ISO 14001 Environmental Management System certification.Autowell Environmental and Safety Management System

Management system for accidents involving Safety and health management system for

Work safety inspection system heavy casualties OHS education system construction projects

Safety management system for special-

purpose equipment and personnel Stakeholder safety management system Fire safety management system Dangerous operations approval system

Management system on traffic safety at Management system on occupational Temporary wiring approval system Hazardous chemicals management system factory disease prevention

Rewards and punishments system concerning Protective equipment management system Dust and virus control equipment Management system on labor protection safety management system articles

System on the protection of female workers Management system for places with “Five-Point” work safety management Safety organization and personnel

and minors flammable or explosive articles system appointment and management system

Work safety target management system Work safety responsibility management Group and post target performance Change management system

system management system

Equipment operation card Management system on the implementation Management system on the

management system of laws regulations standards and norms “Three Violations” management system implementation of rules and regulations

Management system on chemical property Performance evaluation management system Warning marks and safety management Onsite leadership systemrisk assessment and control system

Equipment and facility safety management Equipment and facility inspection and Construction and maintenance safety

maintenance management system management system Emergency relief management systemsystem

Hazardous chemicals management system Source of hazard management system Document and file management system Fire safety management system

Work-related injury insurance management Operating safety management system Management system on the withdrawal Management system on the operation of

system and use of work safety funds environmental protection equipment

ISO 14001 Environmental Management System Certificate Work safety meeting system Work safety meeting system

(Certification Scope: Environmental management

related to the research development and production

of automated equipment for solar wafer and module During the reporting period our investment in environmental protection amounted to RMB 6.2382 millionincluding photovoltaic roof investment

manufacturing.) No major environmental incidents or violations of environmental laws and regulations occurred.

22 23Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Environmental Risk Assessment and Response

Environmental Emergency Manage- Environmental Safety Hazard Inspection

ment

To identify and eliminate potential environmental safety hazards promptly the Company conducts weekly rou-

The Company strictly complies with the Emergency Re- tine hazard inspections reports any identified issues to the responsible departments for rectification action re-

sponse Law of the People’s Republic of China and has views rectification results and documents all identified hazards and rectification results. Beyond routine inspec-

formulated the Environmental Emergency Response tions we also conduct specialized hazard inspections on a regular basis addressing risks related to electricity

Plan . We have established an emergency response team use fire safety and summer and winter-specific hazards. These efforts have helped us reduce the occurrence of

to systematically analyze environmental risks and poten- incidents during high-risk periods.tial environmental emergencies develop targeted en-

vironmental risk prevention measures and implement

an internal early warning mechanism to enhance emer- During the reporting period we proactively addressed all identified environmental safety hazards achieving

gency response capabilities. Additionally we conduct a 100% closed-loop rectification rate.regular emergency response training and drills each year

to improve employees'ability to handle environmental Environmental Protection Training

emergencies.The Company emphasizes energy conservation and environmental protection promotion and education through

training sessions posting signs etc. We share and publicize the latest laws regulations and policy documents

Drill process related to energy conservation and emission reduction in a timely manner encourage employees to participate

in environmental protection themed activities and publicize related new products and technologies raising the

awareness of energy conservation and environmental protection among our employees.This drill simulated a malfunction in the circulation pump of the

emulsion collection tank resulting in an overflow of the waste emul-

sion and minor leakage on the ground. The emergency response

team was immediately notified to arrive at the site for response.Environmental protection training Posting signs

24Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Discharge of Wastewater Waste Gases and Solid Waste

The Company strictly complies with the Water Pollution Prevention and Control Law of the People’s Republic of China the Atmospheric Pollution Prevention and Control Law of

the People’s Republic of China and the Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste as well as local environmental

regulations and standards where we operate. We regulate the management of waste gases and water discharge and noise control disposal of hazardous substances etc. improve re-

source utilization and ensure that all emissions meet or exceed the legal standards reducing the negative impact on the environment.Discharge Management for Wastewater Waste Gases and Solid Waste

Emission Source Treatment and Discharge Reduction Measures

Install waste gas treatment devices at the exhaust gas discharge outlets to ensure compliance with emission standards before discharge and arrange

Oil mist from machining workshops regular testing for the discharged waste gases by relevant organizations.Waste gases

and oil smoke from cafeteria Actively prevent and control waste gas pollution upgrade the waste gas treatment device and promote other initiatives to effectively prevent and reduce

atmospheric pollution.Only domestic sewage without any After pre-treatment by the 4-meter-deep septic tank in the factory area wastewater is directed to the municipal pipeline network and undergoes central-

Wastewater

industrial wastewater ized treatment by the water treatment plant.Non-hazardous waste Domestic garbage and waste cardboard boxes will be collected together and handed over to qualified recycling departments for treatment.Specify collection storage and disposal processes to ensure traceability of hazardous waste and legal disposal across the treatment process. We regularly

Solid waste

commission other qualified entities to deal with the waste cutting fluid generated during production. Our hazardous waste management register has

Hazardous (Dangerous) waste

been approved by the ecological and environmental departments of the respective areas and the transfer procedures are handled in accordance with

the relevant provisions of the environmental protection departments.

24 25Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Noise Management

The Company strictly follows the Law of the People’s Republic of China on the Prevention and Control of Noise Pollution and actively controls noise for its factories within industrial

parks which are located away from residential areas. For areas with noise measures such as equipment protection work environment monitoring and occupational health checks

are taken to reduce noise impact on employees'health.During the reporting period the environmental noise outside the factory boundary met the requirements of Category 3 standards in the Emission Standard for Industrial Enter-

prises Noise at Boundary (GB 12348-2008).Clean Production

The Company actively promotes cleaner production and supports the devel-

opment of the circular economy. We prioritize the use of clean energy adopt

processes and equipment with high resource utilization efficiency and low

Autowell actively responds to China’s

pollutant emissions and promote integrated waste utilization technologies

green development policy and has initiated

and harmless pollutant treatment technologies reducing pollutant genera-

clean production audits. After undergoing

tion and effectively enhancing our clean production management.strict evaluation and auditing proceduresIn terms of clean production philosophies we follow the“ Five Characteris- the Company successfully passed the cleantics Two Transformations and Environmental Friendliness” principle. We production audit and performed excellent-

focus on the durability maintainability reliability reusability and re-manu- ly in the green factory certification reviewfacturability for our products and improve the development of modular and earning the honor of“ Jiangsu Provinceintelligent products. We emphasize the disassembly (separation) and recy- Green Factory”.clability of parts that have a negative environmental impact during both the

production and usage phases.Jiangsu Province Green Factory

26Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Energy Utilization mand. After fulfilling onsite consumption requirements surplus energy is fed into the pub-lic grid in compliance with local energy regulatory provisions achieving optimized energy

utilization.Energy Management System In 2024 the total electricity generation of Polar PV Power Station reached 808104 kWh

with 335724 kWh consumed for self-use (on-site consumption).Energy Management Compliance with regulations energy conservation and consumption In 2024 our total energy consumption decreased by 28% compared to 2023 (excluding

Policy reduction science-based development and continuous improvement. renewable energy consumption).Energy Management Energy Conservation and Carbon Reduction in Pro-

Continuous reduction in total energy consumption in 2024.Target duction

To further enhance energy manage- Energy-Saving

Measures Effectsment deepen energy conservation and

emission reduction efforts and improve ISO 50001 Energy

energy utilization efficiency Autowell Management System

Certification

strictly adheres to the Energy Conser- (Certification Scope: In terms of production and power equip-

vation Law of the People’s Republic of Energy management ment we have introduced energy-saving

China and continuously strengthens its activities related to the equipment to enhance energy utilization

research development

energy management system. During efficiency. For instance centrifugal pumps and production of au- Continuous Opti-

tomated equipment for mization of Equip- and centrifuges have been upgraded from the reporting period we successfully

solar wafer and module

passed the annual audit of the ISO ment Efficiency

fixed-speed motors to variable frequency

manufacturing.) motors enabling load speed adjustment

50001 Energy Management System. and reducing electricity losses.

Low-energy-consumption

air compressors

Energy Conservation and Carbon We actively explore and develop energy-saving processes by establishing an energy management platform that enables com-

Reduction Management prehensive energy management. This platform provides real-time and refined monitoring identifies potential energy-saving and

Autowell actively implements energy conservation and carbon reduction strate- Energy-Saving emission reduction opportunities through intelligent analysis

gies promotes equipment efficiency upgrades introduces advanced energy-saving Process Man- and reduces overall energy consumption. Additionally we man-

equipment and conducts research on energy-efficient processes. These initiatives agement age our air conditioning systems to ensure summer cooling does

not exceed 26 ° C and winter heating does not exceed 20 ° C. Air

aim to maximize energy utilization efficiency and significantly reduce energy con-

conditioners are turned off 30 minutes before the end of work

sumption in production. Furthermore subsidiary Polar PV has its own photovoltaic hours to further reduce energy consumption.power station with generated electricity prioritized for internal operational de-

26 27Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Intelligent Energy Consumption Monitor- Clean Energy Adoption

ing The Company strongly promotes green production and low-carbon operations by actively optimizing

its energy mix and accelerating the development of renewable energy infrastructure. Our primary ener-

To effectively enhance energy efficiency and energy management

gy sources include purchased electricity natural gas diesel gasoline and renewable energy.capabilities Autowell has deployed a digital intelligence system to

provide data support for its energy consumption management. The

Company leverages an online energy consumption monitoring system The Company has implemented distributed rooftop solar photovoltaic (PV) projects and PV streetlights

to dynamically track energy consumption promptly detect anomalies across its facilities. In 2024 these initiatives generated a total of 1660.94 MWh of electricity equivalent

in energy consumption and regularly compile statistics on energy to reducing approximately 1413 tons of CO emissions.2

consumption across different entities. This enables the timely identi-

fication of energy inefficiencies the discovery of potential energy-sav- Energy Consumption Overview1

ing opportunities and the improvement of energy management preci-

sion. Indicator Unit 2024

Purchased Electricity 10000 kWh 418.452

Diesel Tons 13.63

Gasoline Tons 78.29

Natural Gas KNm3 43.60

Total Comprehensive Energy Consumption Tons of standard coal 702.51

Direct total energy consumption Tons of standard coal 188.23

Indirect total energy consumption Tons of standard coal 514.28

Comprehensive Energy Consumption Inten- Tons of standard coal per RMB 10000 reve-

0.0008

sity nue

Renewable Energy Consumption MWh 1660.94

Proportion of Renewable Energy Consump-

%22.45

tion

Note 1: The Company’s primary direct energy sources include diesel gasoline and natural gas while indirect energy sources mainly involve purchased elec-

tricity. The total comprehensive energy consumption is calculated with the conversion factors specified in the General Rules for Calculation of the Compre-

hensive Energy Consumption (GB/T 2589-2020) issued by the People’s Republic of China.Autowell’s energy consumption management platform

Note 2: Purchased electricity figures exclude self-consumed PV power generation.

28Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Water Resource Utilization Indicator Unit 2024

Total water consumption (municipal supply) Tons 83191

Autowell strictly complies with the Water Law of the People’s Republic of

Water consumption intensity Cubic meters per 10000 yuan of revenue 0.0904

China and other relevant regulations implementing standardized water-sav-

ing measures and enhancing water resource management.Note: The total water consumption increased compared to the previous year due to the commissioning of the Phase II factory.The Company’s primary water source is municipal water supply which is

mainly used for production office operations and employees'daily con-

sumption. Our water withdrawal activities do not have a significant impact Circular Economy

on the environment.Autowell actively responds to China’s 14th Five-Year Plan for Circular Economy Development and

Water-saving Measures adheres to the Circular Economy Promotion Law of the People’s Republic of China . The Company

continuously optimizes resource utilization promotes green material procurement and recycles

and reuses recyclable materials.Water-saving facilities Water conservation awareness

Initiatives for the Circular Economy

We have constructed a rainwater We actively promote water conservation through Green material procurement Recycling of packaging materials

collection system that gathers awareness campaigns regularly organizing wa-

rainwater from factory rooftops ter-saving training sessions. Signage is placed in

through dedicated pipelines. public areas to encourage responsible water use

After undergoing multi-stage and eliminate continuous water flow issues. Em-

filtration and purification the ployees are guided to use water efficiently foster- We prioritize environmentally friendly mate- We encourage the reuse of packaging materials to

collected rainwater is stored in ing awareness of the importance of water resource rials including eco-friendly metals non-me- reduce consumption and minimize resource depletion

a reservoir. The treated water conservation. tallic materials and recyclable materials. and GHG emissions.meets the quality standards for These materials have minimal environmental During the reporting period we collaborated with

landscaping irrigation and is impact during production and can be reused suppliers to recover and reuse presentable wooden

used for plant maintenance and reducing resource waste. packaging crates for laser equipment significantly

other recycling purposes within In 2024 we purchased green materials worth reducing packaging waste. Over 100 crates were recy-

the facility.RMB 4.03 million. cled.

28 29Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Green Operations

Green Office Initiatives

At Autowell we value green and low-carbon philosophies by integrating various environmentally friendly measures into our office operations. We actively promote sustainable de-

velopment while fostering a high-quality office environment.Green office initiatives

Daily operations Stipulate that air conditioners lights computers and other electrical devices must be turned off after work; Advocate for turning off air conditioning 30 minutes before leaving the office and ad-

justing the temperature settings based on the season; Suggest the use of energy-saving lighting and maximize the use of natural light to reduce electricity consumption.Paperless office Advocate for a paperless office environment: In 2024 the paper consumption per capita was 618.29 sheets reflecting a 4.6% decrease compared to 2023.Install smart EV charging stations in our facilities to encourage staggered charging and encourage employees to use new energy vehi-

Green commuting cles to reduce fossil fuel consumption.* Display banners slogans and posters to promote a civilized frugal green and low-carbon lifestyle and work culture fostering

strong engagement and awareness among employees.Promotion

* Regularly share updated energy conservation policies laws regulations as well as new energy-saving products and technologies through DingTalk emails and other platforms.

30Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Green Product Design

At Autowell we are firmly committed to balancing technological innovation with environmental responsibility on the path to sustainable development. With a strong focus on the photo-

voltaic lithium energy storage and semiconductor sectors we are dedicated to driving the green development of the industry through practical and effective solutions.Photovoltaics: Next-Generation 0BB String Welding Semiconductors: Breakthroughs in SC-1600 MCZ Magnetic

Energy Storage: Innovative and Intelligent Technology Crystal Growth Furnace and Improved Efficiency in Wire

Technology Bonder

In 2024 we introduced a new generation of 0BB soldering stringer In the field of energy storage equipment manufacturing we have Our newly developed SC-1600 MCZ magnetic crystal growth furnace

equipment optimized for green manufacturing. Featuring a mod- integrated innovative flexible logistics scheduling technology has achieved a major breakthrough by successfully completing its first

ular structure the system is compatible with mainstream cells with high-precision visual positioning systems to significantly im- crystal growth operation on an overseas client’s production line. The

such as TOPCon HJT and BC and equipped with an intelligent prove the operational efficiency of energy storage modules/PACK/ system produced a semiconductor-grade crystal ingot with a diameter

temperature control system to enable precise energy consumption container production lines. With a modular design concept the of 395 mm and length of 1.7 m. Compatible with a variety of semicon-

management. Through an enhanced thermal cycle design the solution allows for flexible production line configuration based on ductor materials this large-diameter design improves the furnace’s

equipment maintains stable high medium and low-tempera- varying application scenarios ensuring production precision while output while reducing raw material waste offering the semiconductor

ture process conditions while reducing energy consumption. Its reducing idle energy consumption of equipment. By optimizing ma- industry a more efficient and environmentally friendly crystal growth

compatibility with multiple processes reduces production line terial flow paths and deploying intelligent scheduling algorithms solution.configuration requirements and supports the adoption of various the solution increases resource utilization efficiency and reduces

In addition we have significantly enhanced the production efficiency

adhesives including UV and water-based eco-friendly options energy consumption providing a more adaptable green manufac-

of our flagship aluminum wire bonder through design optimization.helping lower VOC (volatile organic compound) emissions during turing solution for the energy storage industry.The unit’s production efficiency (UPH) has increased by 20% while its

manufacturing.operational stability has been greatly improved ensuring high-efficien-

cy production processes.MBB PV Cell Soldering Stringer Prismatic Cell Energy Storage Module/PACK Assembly Line Crystal Growth Furnace Aluminum Wire Bonder

30 31Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Biodiversity Conservation

In alignment with the Convention on Biological Diversity China’s Judicial Protection of Biodiversity and other relevant policies we will actively learn and adhere to ecologi-

cal and biodiversity conservation requirements striving to realize the vision of harmonious coexistence between humanity and nature.Comply with interna- Encourage suppliers Strictly adhere to Vigorously promote Strictly control envi- Integrate biodiver-

tional and local forest to participate in the policy requirements the use of renewable ronmental impact and sity considerations

resource protection restoration of degrad- from China’s Ministry energy and circular noise pollution during into the early-stage

laws and regulations ed forest ecosystems of Natural Resources resources reduce project construc- project evaluation

and strictly prohibit all contributing to forest and the National For- dependence on tradi- tion and minimize system to ensure that

subsidiaries from con- rehabilitation and the estry and Grassland tional natural resourc- construction duration we and our supply

ducting operations in virtuous cycle of the Administration during es and minimize the and reduce material chain operations and

forested areas nature ecosystem. the project initiation environmental impact consumption through project locations do

reserves or ecological phase ensuring all of resource extraction. green construction not encroach upon

habitats to ensure the construction activities management and local nature reserves

integrity and stability align with ecological optimized scheduling or ecological con-

of the ecological envi- conservation goals. achieving a balance servation habitats

ronment. between project effectively mitigating

development and eco- ecological risks at the

logical protection. source.

32Align with the SDGs Response to

issues

* Safeguarding Employee Rights *Innovation-Driven Devel-

Society and Interests opment* Occupational Health and Safety *Win-win Cooperation

* Products and Services *Social Contributions

32Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Safeguarding Employee Rights and Interests

Employment and Equality

Talent Acquisition

Compliant Employment

In 2024 the Company revised a series of recruitment management

Autowell strictly adheres to the Labor Law of the People’s Republic of China the Labor Contract Law of documents including the Recruitment Plan and Implementation the

the People’s Republic of China the Law of the People’s Republic of China on the Protection of Rights Recruitment Management the Recruitment Channel Management and

and Interests of Women and the Provisions on the Prohibition of Using Child Labor among other rel- the Recruitment Implementation. These updates aimed to continuous-

evant laws and regulations. The Company has established comprehensive employment management ly optimize hiring processes ensure compliance and promote fairness.policies including the Recruitment Management Policy and the Employee Handbook. We uphold the We follow the principles of justice fairness and transparency in recruit-

principle of employment equality strictly prohibit child labor and forced labor and mandate that all job ment and continue to diversify our talent acquisition channels includ-

applicants must be at least 18 years old. For positions involving occupational hazards employees must ing online recruitment campus hiring job fairs headhunting services

be over 18 years old and possess valid identification recognized by the People’s Republic of China. Fur- university-industry collaboration internal referrals and social media

thermore we enforce a zero-tolerance policy against discrimination and harassment based on gender recruitment to attract highly skilled multidisciplinary professionals

age nationality or ethnicity. supporting our long-term growth.During the reporting period we signed labor contracts with 100% of our employees and had no

child labor forced labor or discriminatory incidents.In 2024 Autowell was recognized with two employer brand certifications During the reporting

period we recruited

over 100 graduates

Liepin: Zhilian Zhaopin:

and more than 450

Jiangsu Extraor- 2024 10 Best Em- experienced employ-

dinary Employer ployers in Wuxi ees.of the Year

2024 Autowell Campus Recruitment

34Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Strengthening university-enterprise collaboration to cultivate multidisciplinary talent

The Company actively supports China’s national initiative to deepen university-enterprise collaboration and accelerate the transformation of academic

research into industrial applications. Through enhanced collaboration with universities we provide students with internship and employment opportuni-

ties.In August 2024 we further expanded our partnership with Nanjing University of Science and Technology (NJUST) by successfully launching an interna-

tional industrial study tour to offer NJUST students valuable opportunities to gain hands-on experience in an international setting. During the study pro-

gram students visited our Manufacturing Center and Engineering Services Department participated in product assembly and equipment calibration and

gained in-depth knowledge of our manufacturing processes and product technologies. This initiative also offered us valuable insights.. By optimizing the

tripartite collaboration mechanism among enterprises universities and research institutes we continue to nurture more versatile professionals contrib-

uting to the industry’s high-quality development.

34 35Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Diverse Workplace

Diversity and inclusion are essential factors in building a strong talent pool. Autowell is committed to fostering a diverse and inclusive work environment and providing equal devel-

opment opportunities and an open growth platform for all employees regardless of gender age nationality and ethnicity.Employee Composition

Total Eemployees Male Eemployees Female Eemployees

41013550551

Employees Aaged 30 and Below 44.75% Production 1267 Engineering 1175

By Age By JobEmployees Aged 30-40（Including 46.38% Function Sales 122 R&D 1065

40 years old）

Finance 45 Management 427

Employees Aged 40 and above(- 8.87%

Excluding 40 years old)

Employees with associate de- 58.38% Proportion of female Ethnic minority Local employees in over-

grees or below management employees seas subsidiaries

By Education Others

Level Bachelor’s degree holders

34.14%21%1%100%

Master’s degree holders 7.24%

Ph.D. holders 0.24%

36

By genderNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Compensation and Benefits

Compensation System

Autowell advocates for the shared growth with employees while adhering to a rational compensation distribution principle. The Company has established a three-tier compensation

management system covering corporate departmental and individual levels and formulated the Compensation Management Process to ensure that compensation structures align

with corporate strategic planning. Additionally we implement performance bonuses year-end bonuses and various innovative incentive programs to maximize employee motivation

creativity and talent retention.Incentive Mechanisms

Equity Incentives

Performance Determine assessment and calculation schemes based on employees'job categories; specific cas-

Bonuses es such as onboarding resignation and special transfers are handled according to our compensa- To further improve the company's long-term incentive

tion performance calculation policies.mechanism and enable employees to better share in

the enterprise's development achievements realizing

mutual growth for both individuals and the organiza-

Year-End Determine year-end bonuses based on our overall performance metrics with individual bonuses

tion the company has implemented annual restricted

Bonuses evaluated based on personal annual performance working years at the Company and other fac- stock incentive plans in accordance with the 2021 2022

tors. and 2023 Restricted Stock Incentive Plan (Draft).From

2021 to 2023 the company launched one incentive

plan each year with the three-phase incentive totaling

nearly 6 million shares (based on the share capital

as of April 11 2025 the date of the notice for the 13th

* Managers are encouraged to provide ad-hoc and project-based incentives as needed. meeting of the 4th Board of Directors). The incentive

Other Incen- * We conduct annual performance recognition programs selecting and providing outstand- covered over 2700 core management personnel and

tives ing employees projects and teams at both the organizational and department levels with frontline business team members.During the reporting

awards and monetary incentives. period all three-phase incentive plans met the compa-

* Eligible outstanding employees may also receive stock-based long-term incentives.ny-level performance targets with a total of over 1.81

million shares vested/unlocked.

36 37Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Benefits System

Employee Satisfaction Survey

To enhance the effectiveness of employee welfare the Company continuously optimized its welfare

management system during the reporting period further standardizing welfare policies and pro- To understand employees'opinions and demands the Company con-

cedures. Specifically we conducted a comprehensive review and evaluation of our existing welfare ducted employee satisfaction surveys with a focus on areas such as the

policies and introduced several new welfare measures based on employee needs and corporate cafeteria and shuttle services and implemented targeted improvements

development goals such as family care benefits and support for personal hobbies. Additionally we for areas with lower satisfaction to enhance overall employee satisfaction

streamlined the welfare application and approval processes and adopted a digital management and well-being.platform to ensure efficient and transparent operations ensuring that welfare policies are accurate-

ly implemented and benefit all employees. Moreover we strengthened the promotion and training

of welfare policies to help employees fully understand and make proper use of available welfare re- In 2024 we collected 1019 employee satisfaction survey responses

sources thereby improving their sense of belonging and satisfaction and laying a solid foundation with an overall satisfaction rate of 80%.for our sustainable development.Welfare Composition

* We provide the five social insurances and one housing fund for employees who

Insurance have signed formal labor contracts and offers commercial insurance for employ-

Contributions ees and their one child.* In 2024 100% of employees were covered by social insurance.* In addition to statutory holidays we offer additional annual leave and paid sick

Holiday leave for eligible employees as well as various special leave types such as parental

leave only-child care leave prenatal check-up leave family planning leave mis-

Benefits carriage leave bereavement leave nursing leave and overseas family visit leave

ensuring employees’right to rest and meet the leave needs of special groups.Flexible * According to the Paid Annual Leave Regulations and other leave management poli-

cies employees in specific departments may arrange flexible working hours based

Working

on job nature and personal planning. Other departments adhere to an 8-hour

Hours workday fully implementing weekend rest and statutory holiday policies.Shuttle

* To facilitate commuting we provide a variety of shuttle routes for employees.Services

Other * Subsidies such as telephone subsidies and transportation subsidies interest group

Benefits activities and employee cafeterias.

38Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Democracy and Communication Employee Grievance Mechanism

Autowell advocates for democratic management by holding staff representative The Company’s Human Resources Department and Disciplinary Inspection

meetings establishing trade union organizations and ensuring employees'rights to Department are specifically responsible for handling employee grievances

information participation expression and supervision. We actively attend to employ- complaints and reports. Moreover we have established a suggestion tracking

ees'opinions on business operations and major decisions protect employees'rights and feedback mechanism committing to prompt and fair investigations into all

and interests and enhance our science-based management. grievances complaints and reports. We take necessary corrective actions while

Democratic Management System upholding strict confidentiality and fairness throughout the grievance process.The Company has established a democratic management system in strict accordance

with the Trade Union Law of the People’s Republic of China and the Regulations on We have clearly outlined the grievance procedure in the

Democratic Management in Enterprises. We regularly hold staff representative meet- Clear Grievance Employee Handbook and set up grievance mailboxes in

ings run trade union organizations and review major corporate decisions and policies Procedure surveillance blind spots to actively encourage employees to

to ensure that employees have a voice in corporate affairs related to economic political speak up.and cultural matters thereby improving decision-making and employees'sense of iden-

tity. On August 20 2024 we held a staff representative meeting to elect the fourth staff

representative supervisors. The elected supervisors along with those elected at the

Shareholders'Meeting constitute the fourth Supervisory Board.Employees who have issues with salary payment can submit

a written dispute to the Human Resources Department with-

Salary Grievance in three working days after receiving the salary slip or labor

Collecting employee feedback for a greener Channel compensation. If an error is confirmed the Human Resourc-

office environment es Department will respond and reissue the payment within

3 working days of receiving the dispute.

In February 2024 to address internal waste issues we

collected employee opinions through an online ques-

tionnaire and collaborated with employees to build a

more sustainable work and production environment. We We regularly organize training and promotional activities to

adopted valid suggestions from a total of 1763 Training and enhance employees'understanding of our policies and pro- ques-

tionnaires. Promotion cedures ensuring that every employee is aware of how to

properly use these feedback channels.

38 39Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Employee Grievance Procedure Care and Support

Assistance for Employees in Difficulty

Step 1

The Company has always placed employee welfare as a top pri-

ority offering both financial and emotional support to employees

* Employees should first raise their issues with their direct supervisor or manager for discussion. facing significant health issues or accidents.* If the issue is not resolved within a reasonable period the concerned manager or employee may re-

port the issue to the higher-level manager and notify the Human Resources Business Partner (HRBP).In May 2024 an employee underwent surgery for a malignant

Step 2 tumor. Our trade union organized a visit to the employee to

provide both financial and emotional support.* The employee communicates with the higher-level manager with the HRBP observing or participat-

ing in the discussion. In July 2024 after an employee tragically passed away due to

* The higher-level manager and HRBP will jointly make a decision on the issue. a traffic accident our trade union representatives attended the

* If the issue remains unresolved it should be escalated to the employee’s corporate management. memorial service and provided condolence money and emo-

tional support to help the family cope during this difficult time

Step 3 creating a warm and supportive work environment.* The Disciplinary Inspection Department will investigate the issue and provide decision-making refer- Care for Female Employees

ence to the Company’s management which will make a final decision. The Company places great importance on the workplace experi-

ence of female employees strictly adhering to the Special Rules

on Labor Protection for Female Employees and other related re-

quirements to meet their specific needs. We have designated ex-

clusive rest areas for pregnant and breastfeeding women ensuring

their rights to rest and breastfeed. In addition we organize event

for International Women’s Day such as DIY pearl jewelry making

Chinese-style handbag making and health lectures focused on

women’s well-being helping female employees reduce stress and

Suggestion boxes in public office areas demonstrating our care and respect for them.

40Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Emphasis on Employee Health

Special Event“ Shining Her” in Celebration of International Women’s Day The Company advocates for employees to pay attention to their health. During the reporting

period we organized traditional Chinese medicine (TCM) health check-ups to raise employ-

ees'health awareness.On International Women’s Day 2024 in collaboration with the

trade union committee we held various vibrant events under

the theme“ Shining Her” bringing joy and warmth to female

employees and making them feel our love and support on this Providing Free TCM Check-ups to Support Employee Health

special day.In November 2024 to raise health awareness and improve the health

of employees we responded to the national“ Healthy China” initiative

by collaborating with the Wangzhuang Street Chamber of Commerce to

invite TCM experts for health check-ups. The experts provided person-

alized health advice and treatment plans based on employees'physical

conditions. The event received a warm welcome and high praise from

our employees. Many expressed that the activity helped them gain a

deeper understanding of their health and gave them a more intuitive un-

derstanding of TCM culture.DIY Pearl Jewelry Making

Breast and Cervical Health Chinese-Style Handbag DIY

Lecture Activity

40 41Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Employee Activities Development and Training

Autowell places a high value on balancing employees'work and per-

sonal life. The Company organizes a variety of employee activities such Employee Training

as Spring Festival couplet writing hiking events table tennis competi-

tions billiards tournaments badminton matches and e-sports com- By implementing training systems such as the Autowell Training Management System the Autowell

petitions. These activities enrich employees'leisure time and enhance Course Management System and the Autowell Lecturer Management System and aligning with

teamwork and cohesion within the Company. the needs of employees at different positions levels and stages of development the Company has

gradually improved its talent development and training system. Additionally we provide E-learning

platforms to broaden employees'learning channels and enrich learning resources for continuous

self-improvement.Newly hired experienced employees

Regularly organize onboarding training safety training corporate culture training and job skill en-

New year badminton exchange match Reading festival

hancement courses to help newly hired experienced employees quickly integrate into the Company

and familiarize themselves with operational management models and policies.Newly hired graduate employees

Spring Festival couplets writing Table tennis competition * Graduate training system: The Company has developed a dedicated “Qingsong Program” for

graduate training which includes military training intensive training job rotations and profes-

sional development cultivating new graduates into specialized talents in specific fields or posi-

tions. In 2024 we organized 11 graduate training sessions attended by 1100 participants.* Management trainee training system: Through rotations and hands-on practice across depart-ments or business units and senior leadership coaching we have developed a 3-year “War-styleGuide Training” system to train management trainees into management talent reserves with a

broad strategic perspective.Hiking event E-sports competition

42Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Existing employees High-potential employees

* Provide regular specialized skill enhancement training based on business needs such

as Omron Training for electrical skills Mechanical Drawing Design Standards 3D Model-

ing Standards Zero-Cost Machining and other mechanical skills Supply Chain System To precisely identify and nurture high-performance high-potential key talent we estab-

training and online and offline career development programs. lished the HIPO Program for High-Potential Talent to select and accelerate the develop-

ment of highly promising individuals creating a robust talent pool to continuously provide

* Organize external public courses or seminars as needed based on business scenarios.high-quality talents for various business sectors.* Conduct specialized talent training programs based on business development needs

such as the 2024 Product Engineer Bootcamp and Corporate Management Bootcamp

covering 239 participants.Managerial employees Frontline team leaders

* Provide leadership training for supervisors and managers covering areas such as human

resource management strategy decoding goal management and plan execution coach- The Company organizes the annual online and offline capability enhancement camp for

ing leadership quality decision-making and team canvas all aimed at supporting busi- frontline team leaders implementing a “Learn-Examine-Evaluate” development mecha-

ness growth and improving internal management capabilities. nism. Special courses on areas such as frontline production management lean management

* In 2024 we organized 2 “Xiaomi Entrepreneurship Thoughts and quality management are offered to effectively enhance the on-site management capabil-” book sharing sessions

involving 92 managers. ities of frontline team leaders.

42 43Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Vocational Skills Enhancement Training Internal Lecturer Development

To elevate the quality of technical talent development Autowell meticulously In 2024 we launched our first internal trainer certification and appointment pro-

organized an intensive vocational skills enhancement training program in gram. Through a multi-step process—including registration preliminary review

training trial lectures and final assessment—a group of outstanding lecturers

2024. This training primarily targeted employees in frontline manufacturing

from various business domains was successfully certified. This initiative fosters

engineering and R&D positions focusing on three key trades: assembly fit-

knowledge transfer facilitates experience sharing and enhances overall employ-

ters electricians and CNC milling operators. The program was structured into

ee competency.two levels—senior workers and technicians. With strong support from the

Company’s leadership the General Administration Department meticulously During the reporting period the internal lecturer program accumulated a total of

planned and efficiently provided the training ensuring its smooth implemen- 24 training hours reaching 82 participants.tation. As a result 138 new skilled personnel were certified this year includ-

ing 58 technicians and 80 senior workers with an impressive exam pass

rate of 93%. This outcome highlights the significant impact of the training

program reinforcing our skilled talent pipeline.Graduate and Management Trainee Training Programs

Trainer Appointment Ceremony Product Training Bootcamp

44Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Employee Training Performance Employee Promotion

Autowell has established a dual-track career development framework

Total employee training hours Total investment in employee train- encompassing both management and specialist pathways. Based on

(hours) ing (RMB) management levels the Company has defined corresponding promotion

19832 971800 standards and criteria. Employees can choose their career paths accord-ing to their interests abilities and professional aspirations. To support

career growth we provide career planning and development assistance.By assessing targeted job groups and benchmarking them against tal-

Training hours for new employees Proportion of new employees ent profiles we systematically identify employees'skill gaps determine

(hours) trained (%) training directions and customize training programs while continuously

120 100 refining these programs.Promotion Management

Proportion of mid-level managers Training hours for mid-level man-

trained (%) agement (hours)

86 124.5 Professional track promo- Pilot selection in the pro-

tion standards fessional track

Training hours for female employees Proportion of female employees

(hours) trained (%) We have developed 43 qualification In 2024 we launched a pilot selection

4041.50 18.3 standards across different sub- program within the R&D department tracks and levels identifying over leveraging qualification standards to

170 core competencies. They clearly implement a diversified evaluation

define the fundamental job require- model. The selection process inte-

ments performance expectations grates theoretical assessments case

Training hours for male employees Percentage of male employees knowledge areas and behavioral studies and in-person presentation

(hours) trained (%) competencies necessary for em- reviews ensuring a more compre-

15790.5 81.7 ployee selection and promotion hensive and objective assessment ensuring science-based and clear of technical talent and maintaining

evaluation standards. high-quality selection.

44 45Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

员Em工plo通ye过es走 in管 th理e m通an道ag，em承en担t t更rac多k t责ak任e o来n m实o现re 职re-位晋升 Directorspo，ns成ibi为lity更 to高 ge层t a次 pr的om管ot理ion人 an员d 。become a higher-level Managermanager. Supervisor

Staff Member

Employees sharpen their skills and accumulate experience

at specified posts to grow into a specialist in a particular

field. For the purpose of growing with employees we fully

leverage various resources and conditions to provide train- Senior Staff Principal Engi-

Middle-level Senior Engi-

ing and development opportunities for employees helping Engineer neer Junior Engineer Engineer neer

them tap into their potential completely.M6 Senior Manager P12

P11 Senior Staff

M5 Manager M7 Vice Director P16 Engineer/Specialist

M4 Deputy P17 Chief ExpertM8 Director P15 P10

Manager Management Technological M11 General

M3 Senior Manager Channel Channel P18M9 Senior Director P14 Expert P9

Supervisor

M10 Deputy P19 Scientist P8 Senior Engineer/

M2 Supervisor General Manager P13 Specialist

M1 Associate P7

Manager

Manager in an organization: Planning organizing leadership Specialists: Specialists are the pivot of corporate development.control and performing other functions to coordinate and P1-----P6 They have an impressive educational background rich professional

lead team members towards meeting the set targets. knowledge and experience and a great capacity to learn.

46

Growth Path Growth Path

Management Specialist

Dual-track career development

mechanism

Job Classification SystemNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Occupational Health and Safety

Occupational Health Occupational Health Management Initiatives

Management

Autowell strictly complies with laws and regulations Regularly evaluate and update occupational hazard factors while comprehensively inspecting pro-

such as the Law of the People’s Republic of China on duction processes and equipment. This ensures the timely identification and recognition of potential

Assessment and updates of occupational

the Prevention and Control of Occupational Diseases occupational hazards effectively preventing occupational contraindications and diseases.hazard factors

the Jiangsu Province Work Safety Regulations and the

Wuxi City Work Safety Regulations . The Company has

also established internal policies including the Man- * Continuously upgrade technologies to minimize occupational hazards in high-risk positions and

agement System on Occupational Disease Control the job types.OHS Education System and the Management System * Ensure that all purchased personal protective equipment (PPE) and safety facilities meet regulatory

for Accident Involving Heavy Casualties to regulate requirements and conduct regular maintenance and upgrades.Minimizing occupational disease exposure

occupational health management. * Consistently optimize the management of hazardous substances dust noise and other workplace risks

environmental factors to effectively reduce occupational disease exposure risks.In 2024 we successfully passed the annual surveil-

* Put in place a comprehensive occupational health monitoring system covering pre-employment

lance audit for the ISO 45001 Occupational Health

periodic post-employment and emergency health examinations to ensure effective health moni-

and Safety Management System.toring at all stages of employment.* Establish individual occupational health records for each employee systematically documenting

medical examination results and health conditions to provide a scientific basis for occupational

Occupational health checkups

health management.Regularly engage third-party organizations to conduct occupational health and safety assessments

further ensuring work safety.Optimization of external evaluations

During the reporting period no new cases of occupational diseases were recorded and the occupational health ex-

amination rate for designated positions reached 100%.

46 47Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Work Safety Management

Work Safety Management Framework

Autowell strictly adheres to the Law of the People’s Republic of China on Work Safety the Measures for the Administration of Contingency Plans for Work Safety Accidents and the

Emergency Response Law among other laws and regulations. We have introduced various safety policies including the Work Safety Accountability System the Work Safety Inspection

System and the Work Safety Target Management System . We have established a comprehensive safety management system with a Work Safety Committee spanning from the Gener-

al Manager to functional departments to fully implement safety responsibilities. Under the leadership of the committee we have successfully met our safety targets and obtained the

level III Standardized Work Safety Certification.During the reporting period we recorded no work safety accidents.Organizational Structure of the Work Safety Committee

Responsible Parties

Trade Unions Safety Supervisors

48

Quality Department

Process Information

Department

Strategic Procurement

Department

Sales Department

Finance Department

Engineering Services

Department

Manufacturing Center

R&D Center

Product Management

Department

General Management

Department

Human Resources De-

partmentNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Emergency Management for Work Safety Incidents

At Autowell we place great emphasis on emergency management for work safety incidents. We have developed various emergency management regulations including the Regula-

tions on Emergency Response and the Accident Emergency Response Management System to standardize and refine emergency response procedures. Meanwhile we have estab-

lished a crisis response team comprising management personnel the General Administration Department the Manufacturing Center and the Finance Department. By clearly defin-

ing the responsibilities of each department we ensure a swift response and efficient resource mobilization to prevent and mitigate major work safety incidents.Work safety emergency management measures

* Establish a systematic hazard inspection mechanism conduct weekly routine inspections. Identified issues are promptly reported to the re-

sponsible departments for rectification followed by a review of corrective actions and the summary and analysis of hazard reports and recti-

fication outcomes.Safety hazard inspections * Conduct regular specialized inspections covering electricity safety fire safety and seasonal risk factors (e.g. summer and winter-specific haz-

ards) to ensure comprehensive risk control.* During the reporting period we achieved a 100% rectification rate for identified safety hazards.Safety signs * Display safety warning signs and knowledge posters throughout production workshops and factory areas to continuously remind employees

of safety risks preventing accidents caused by negligence.* Organize regular emergency drills to strengthen employees'ability to respond to safety risks.Emergency drills for work safety

* During the reporting period we organized 6 emergency drills with a total of 635 participants.

48 49Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Hazardous Chemicals Management

The Company has strictly complied with the Regulations on the Safety Management of Hazardous Chemicals and other relevant laws and regulations and formulated the Hazardous

Chemicals Safety Management System . We have continuously strengthened the safety management of hazardous chemicals to ensure the prevention of accidents such as fire explo-

sion and toxic hazards during the transportation storage production and usage of hazardous substances safeguarding the lives property and overall safety of both the Company

and employees.Full-process hazardous chemicals management

Procurement Warehousing Storage And Custody Waste Disposal Usage Management Usage Control

Require suppliers to Conduct dual-per- Classify chemicals by their Engage licensed en- Strictly adhere to safety Department users must

provide materials such son verification to properties and store them tities with hazardous operating procedures complete required ap-

as product qualifi- in designated explo-check the consistency waste management during hazardous chem- proval procedures before

cation certificates sion-proof cabinets. Imple-between materials ment designated personnel permits for profession- ical use. Maintain proper hazardous chemicals are

and safety technical

and documents and management conduct al disposal. ventilation to prevent toxic issued. Inspect contain-

data sheets (SDS) for

inspect packaging regular inspections and gas accumulation. Im- ers before and after use

hazardous chemicals

conditions product immediately activate the plement explosion-proof to confirm no residue or

to ensure compliance hazardous chemical anom-

and transparency in qualification certif- designs or isolation damage.aly response plan upon de-

chemical sourcing. icates and quality tecting abnormalities with protection measures for

documentation. simultaneous reporting to equipment devices and

the Work Safety Commit- systems in operational

tee.areas.

50Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Occupational Health and Safety

Education

The Company places a high premium on occupational health and safety educa-

tion. We conduct a wide range of education and publicity activities such as work Work Safety Accident Prevention Training

safety accountability training work injury prevention training risk classification

and control and hidden hazard investigation and management education work

safety month activities and fire prevention month series. Through these initiatives

To enhance employees'awareness and capability in work safety we con-

we have comprehensively improved the safety awareness and skills of the staff

ducted work safety accident prevention training. Employees were edu-

and integrated safety philosophies into our corporate culture fostering an envi-

cated on the definition classification causes and characteristics of work

ronment where every employee prioritizes and actively participates in safety man-

safety accidents and prevention measures for mechanical injuries elec-

agement.trical hazards and other workplace risks. These training activities have

Occupational health and safety training data in 2024 equipped employees with the knowledge to identify potential hazards

and significantly reduced the likelihood of work safety accidents.Total training hours Total participants

86.5 hours 4861 person-times

Total training sessions Training coverage rate

137 times 100%

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Products and Services

Quality management Quality is critical to the Company just as the water that bears the boat is the

philosophy same that swallows it up.“Three Nos” principle of No nonconforming raw materials; No defective products; No delivery of defective

quality management products.Client service phi-

losophy Humility Attentiveness and Professionalism.Quality management

goals Systematic development

Establish a comprehensive quality management system to enhance efficiency.Process standardization

Define universal elements to ensure repeatability in quality management.Integration of systems and processes

Optimize internal management by harmonizing systematic and standardized

processes.Personnel training

Improve the overall competency of standardized operations personnel.

52Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Responsible Procurement

Autowell implements source control measures for product quality by establishing a rigorous supplier quality management system and enforcing strict supply chain product quality

standards. The Company also provides specialized quality training for procurement personnel to raise their quality awareness.Response mechanism for

Supplier quality Supplier quality sys- Supplier quality Quality training for pro-supplier’s non-conforming

control procedures tem certification agreements curement personnelproducts

* A well-defined non-conforming * We provide training and

* Suppliers are required to fol- * Preference is given to We s ign qual i ty assurance

product management mech- assessments for procurement

low a set of quality control suppliers that have ob- agreements with suppliers to

anism is in place to isolate personnel covering topics such

protocols manufacturing tained quality manage- clearly define their quality re-

non-conforming products as supplier selection quality

products in accordance with ment system certifica- sponsibilities and obligations

preventing them from entering control negotiation techniques

our technical and quality tions such as ISO 9001. ensuring:

the market. and contract management.standards. * During the reporting

* Products comply with nation- * Root cause analysis is conduct- Performance assessments are

* Suppliers must establish period 62 suppliers were

al and industry standards and ed to accurately identify the quantified based on procure-

robust quality management ISO 9001 certified.are accompanied by valid pro- source of defects and formulate ment quality metrics incen-

systems conducting strict

duction licenses and testing targeted corrective solutions. tivizing procurement staff to

inspections of raw materi-

reports. * Depending on the nature and continuously enhance their

als semi-finished products

* The stability and reliability of quantity of defective products work quality.and final products. They are

product quality with suppliers appropriate rework scrapping

also required to regularly

assuming full quality assur- or repurposing measures are

review and optimize their

ance responsibility. implemented ensuring that all

quality management sys-

* A comprehensive quality actions align with environmen-

tems to improve production

traceability system is in place tal standards.quality.making sure that quality * Information on processed

issues can be traced back to non-conforming products is

responsible individuals and shared with relevant depart-

that timely corrective actions ments enabling proactive issue

are taken. resolution and continuous

optimization of production and

quality control measures.

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Product Quality Management Quality Management System

Autowell strictly complies with the Product Quality Law of the People’s Republic of China The Company emphasizes a systematic approach to quality management and

and other relevant regulations and has established quality control systems including strictly adheres to the ISO 9001 Quality Management System certification require-

the Materials Inspection the Process Quality Control and the Delivery Quality Control. By ments. By establishing a quality and safety responsibility system we ensure that

implementing the Plan-Do-Check-Act (PDCA) quality management model we have built a all employees at every level effectively fulfill their quality and safety responsi-

full-lifecycle quality management mechanism covering segments from supply chain man- bilities. Additionally we integrate quality control throughout the entire product

agement to after-sales services continuously improving our product quality and quality lifecycle from understanding client needs research and development (R&D) pro-

management capabilities to maintain our competitive edge in the market. cess engineering procurement production to end-of-life product management

ensuring all products consistently meet quality standards.Quality Commitment Mechanism

Autowell has established a three-level quality and safety responsibility system forming

Supplier Management Procurement Management Materials Inspection

a three-level quality and safety commitment mechanism. This system clearly defines the

quality responsibilities and operational standards for the General Manager department

heads team leaders and employees ensuring the strict fulfillment and implementation

of quality and safety responsibilities.Delivery Quality Control Non-conforming Prod-Process Quality Control

uct Management

General Managers: Those who take primary responsibility for quality Improvement on Client

Traceability Management Aftersales Service

Feedback

Department managers: Those who take main Comprehensive Product Quality Management System

responsibility for quality

Level 1 During the reporting period Autowell and its subsidiaries—ATW Intelligent Equip-

Second-line management ment ATW XuRi and Leddo Technology—successfully passed the annual valida-

and frontline employees: tion of the GB/T 19001-2016 Quality Management System. Meanwhile two other Level 2

Those directly responsible subsidiaries ATW Coshin and Qinhuangdao Zhiyuan obtained certification under

the same system and SCEC renewed its certification.for quality Level 3

54Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Quality Assurance and Improvement

Through diverse quality assurance and improvement initiatives the Company

Successfully Passed Annual Validation in 2024 maintains strict control over product and service quality fostering a culture of

company-wide engagement in continuous quality improvement and consistently

enhancing the quality of its products and services.Quality Assurance Measures

The Company has implemented a Chief Quality Officer (CQO) system granting

the CQO veto power over any event affecting quality and safety in the product re-

Chief Quality Officer

alization process. This strengthens quality management authority and enhances

enforcement.To reinforce product quality and safety control we have established “In-ProcessDedicated Quality Inspection” positions. These professionals focus on and monitor critical produc-

ATW ATW Intelligent Equipment ATW XuRi Leddo Technology

Control Personnel tion stages that significantly impact product quality ensuring that every product

meets high standards.Guided by our business performance we have analyzed the entire value chain

Obtained Certification in 2024 across all business touchpoints with a focus on “end-to-end” business pro-Renewed the Certification in 2024

cesses. We clearly define management operational and support processes

Full-process Quality improve our institutional framework and designs tiered business authority

Control structures. By integrating process execution into our system we ensure seamless

alignment between processes and quality management systems strengthening

value-chain-wide quality control and enhancing operational efficiency and man-

agement capabilities.We sign the Technical Agreements with our consumers explicitly defining key

Quality Commitment

product performance indicators after-sales services training provisions and

Assurance

quality assurance commitments to fully safeguard client rights and interests.We have introduced 237 pieces of laboratory equipment enabling research

in areas such as mechanical and electronic measurement material and me-

Resource Security chanical testing electrical and control system testing process calibration

and inspection environmental and metrological testing physical and optical

ATW Coshin Qinhuangdao Zhiyuan SCEC instrumentation and laser processing.

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Quality management en-

hancement programs Implement quality improvement initiatives to continuously enhance product quality strengthen process assurance and achieve ze-

ro-defect product management.Quality im- Continuous improvement

provement Established the Continuous Improvement management process encouraging company-wide participation in optimizing key areas initiatives

initiatives including product quality information security client feedback management KPI assessments and audit results.Formulate the Rational Proposal Improvement Process encouraging employees to submit suggestions for product and management

Rational proposals enhancements.In 2024

Continuous Improvement Initiative

We recorded a product qualification rate of 99.05% up by 1.5% from In response to client feedback regarding issues with our PV stringers in-

2023 higher than the target set at the beginning of the year. cluding air hose melting in the cell handling area and cracking in batches

near the fan inside the cabinet within one year of operation we promptly

We collected a total of 6067 pieces of online feedback in total through the conducted a thorough investigation into the root causes and implemented

OA system effectively improving the product quality and operational effi- targeted improvement measures. After these optimizations all reported

issues were fully resolved. Additionally we have incorporated client re-

ciency and resulting a total cost saving of RMB 12.551million. in costs. quirements into the R&D and design phase implementing standardized

improvements and optimizations from the source to ensure continuous

enhancement of product quality and client satisfaction.

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Quality Audit Mechanism

Process monitoring Internal audits External certifications

Starting from raw material pro- To ensure the effective operation In addition to quality manage-

curement we enforce stringent of the quality management sys- ment system certifications our

selection standards to ensure tem we conduct internal audits products have complied with in-

materials meet high-quality re- covering all stages and aspects ternational standards (e.g. those

quirements. During production of product quality. Once issues in the EU and the US) been certi-

we leverage a comprehensive in- are identified we urge relevant fied by international certification

spection system to monitor each parties to take corrective mea- bodies such as TUV and Intertek

manufacturing process. Upon sures and implement corrective and obtained CE and EAC certifi-

delivery we follow high-stan- or preventive actions to prevent cates. Furthermore our products

dard acceptance protocols. For recurrence. have secured market access

post-sales we have established authorization in North America.a robust feedback mechanism to

promptly address client con-

cerns. Through full-process qual-

ity control potential defects are

eliminated ensuring premium

products and services for clients.TUV Product Certification

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Product Recall Management Client Service Management

The Company has established the Non-Conforming Product Management Exceptional client service is a powerful tool for attracting new clients and expanding market

process which explicitly requires that any defective products identified share. It also serves as a key foundation for strengthening relationships with existing consumers

by consumers must be recalled or inspected on-site. This process is led and enhancing client loyalty. By providing high-quality personalized service experiences the

by the Engineering Services Department with support from the Sales De- Company meets diverse client needs fostering greater satisfaction and trust.partment and Quality Department to track and verify all consumer-side

products including those in-transit. We ensure that all non-conforming

products in production are properly identified isolated and recorded. In Daily Client Service

cases where non-conforming products have resulted in consumer losses

we conduct case-specific assessments and formulate appropriate com- We maintain close cooperation with consumers through non-scheduled follow-ups and on-

pensation plans. line and offline communication ensuring timely responses to client needs and feedback.Furthermore we have implemented the Regulations on Emergency Re-

sponse and the Internal Reporting System for Important Information

and set up the Crisis Management Team responsible for handling major Daily client service mechanism

product quality incidents ensuring timely and effective control of nega-

tive impacts. Additionally in the event of a major quality incident we will Understand client needs through channels such as client visits phone calls

Client communica-

promptly report the response progress and final resolution to local govern- and online interactions monitor equipment performance and provide

tion channels

ment authorities ensuring transparency and seamless communication. prompt support and solutions.Understanding

and response

Continuously create value for clients. When clients require on-site assis-

Rapid response to

tance we swiftly dispatch sales R&D and engineering teams to address

Product Recall Data in 2024 client needsNumber of Recalled Products issues and ensure operational continuity.

0 Ensure seamless collaboration among production sales and R&D depart-Information sharing

ments to eliminate repetitive work resulting from information gaps im-

mechanism

Number of Complaints Related to prove decision-making efficiency and accelerate issue resolution.Major Safety and Quality Liabili-

Products and Services Communication ty Incidents and resolution

0 0 Three-party report- Implement a three-party reporting system to facilitate efficient communica-ing mechanism tion and collaboration ensuring swift resolution of client concerns.

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After-Sales Client Service

Autowell has established a comprehensive end-to-end service system covering pre-sales in-sales and after-sales stages. The Company is committed to delivering efficient profes-

sional and prompt support comprehensively enhancing client experience. To further improve service quality we have implemented a supervisory inspection mechanism conduct-

ing random checks on sales personnel’s response to client inquiries. Additionally we adopt a project management analysis and review system to ensure effective follow-ups and

strengthen our service reputation.* We have set up an after-sales support middle office team which is responsible for client pre-sales training and service process introduction to ensure that clients fully

Pre-sales understand the products and services.* Rationally allocate resources based on project requirements with a designated project manager and a specialized project team formulating detailed project plans

and targets ensuring a smooth project launch.* The project manager is responsible for overall coordination involving personnel allocation planning and progress tracking providing real-time updates on project

progress and issues.In-sales * The project supervisor assists the project manager in ensuring efficient achievement of project indicators and targets. Through standardized processes a three-party

reporting mechanism and regular client visits we can understand client needs promptly enabling swift responses and adjustments to guarantee high-quality project

delivery.* The technical service team offers round-the-clock remote support ensuring prompt resolution of consumer issues. For urgent matters on-site assistance is provided

within 24 hours domestically and 72 hours internationally.After-sales * The project supervisor conducts regular follow-ups monitoring equipment performance identifying client needs and fostering strong consumer relationships.* Through our WeChat official account clients can access comprehensive technical documents such as regular updates on equipment maintenance troubleshooting

guides debugging techniques and product introduction empowering them to maximize operational efficiency.

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Client complaint response mechanism Responsible Marketing

To ensure that marketing activities comply with market regulations the Company

strictly adheres to national and local laws and regulations while upholding the principle

The project manager responds to the complaint immediately identifies the

Step1 of compliant operation with integrity. We strictly follow industry standards and actively

level of severity and escalates to a higher level. maintain a fair and orderly business environment.Maintain effective communication among the client the on-site team and With “Operations with Integrity” as our core ethical guideline we have established

Step2 the back office (engineering sales and R&D). systems such as the Bidding Management the Supplier Management and the Anti-Cor-

ruption Agreements . Additionally our dual-layer compliance mechanism—consisting

of an in-house legal department and external legal advisors—ensures that all product

Step3 The after-sales team communicates with the person in charge on the client marketing activities remain lawful compliant and well-regulated.side.In terms of brand crisis handling we adhere to the 5S principle for brand crisis responsewhich is “the principle of Shouldering the Matter Sincerity Speed System and Stan-Step4 Formulate the solutions and send them to the client on the same day. dard” and have formulated a brand crisis response mechanism to protect the reputa-

tion and image of our brand.Step5 Push forward the progress until the issue is solved.SHOULDER

THE MATTER During the reporting

Step6 Follow up with the client and review the communication. period we had no 3 violation of the reg-

ulations on product

Step7 In response to the client complaint we draw up improvement and optimiza- and service informa-

tion plans promptly and implement them effectively. STANDARD 2 4 SINCERITY tion and trademark

identification.The 5S principle Since the inception

we have not record-

Client Complaint Reso- Client Complaint Re-

ed any brand crisis.Client Complaint Reso- lution Rate sponse Rate

lution Performance 100% 100% SYSTEM 1 5 SPEED

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Enhancing Product Accessibility

To improve client experience and support better understanding and utilization of its products the Company customizes training programs based on clients'technical capabilities and

business stages. This ensures that clients at different levels can acquire product knowledge tailored to their needs. Additionally we have introduced one-stop intelligent module inter-

connection solutions enabling process and technology upgrades reducing barriers to product usage and enhancing product accessibility.* Provide consumers with intelligent efficient and reliable PV equipment solutions covering four major production stages—rod wafer cell and module—with cus-

Customized tomizable and combinable configurations tailored to client needs.product solu- * Offer independently developed customized lithium-ion battery module/intelligent PACK assembly solutions designed for new energy power and energy storage

tions applications. These solutions boast stability efficiency safety and energy conservation meeting diverse client needs.* Provide comprehensive training programs across pre-sales in-sales and after-sales stages ensuring clients master product usage skills at every stage.One-stop mod- * Our large-size cell stringers not only meet client technical requirements but also offer multi-process selection reducing the impact of external environmental fac-

ule packaging tors on client operations.solutions * We have fully upgraded our multi-point equipment at the module end and introduced the latest smart module packaging interconnection solution. With a vision

to build fully automated or minimally staffed smart factories we provide one-stop solutions for module interconnection.Process and * Our platform-based technology enables compatibility with multiple processes supporting TOPCon HJT BC and other cell types. Our technology optimization fur-

technology ther reduces costs and improves product availability.iteration and * Our 0BB stringer equipment has undergone technical iteration and optimization successfully achieving cost reduction and efficiency enhancement in mass pro-

optimization duction lowering the barrier for product usage and enhancing accessibility.

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Client Satisfaction

Client Training To gain in-depth insights into client satisfaction and feedback the Company

conducted client satisfaction surveys covering multiple perspectives including

product quality service quality delivery performance and pricing. In 2024 both

In 2024 we designed customized training programs for our latest PV domestic and overseas client satisfaction rates reached 100%.string layup and bussing machine addressing specific client needs.The training covered areas such as theoretical principles and hands-on Overseas Clients Satis- Domestic Client Satis-

equipment operation. After the training trainees successfully mastered faction Rate faction Rate

professional skills such as model switching cell string precision adjust-

ment and welding optimization laying a solid foundation for future

equipment installation and operation. 100% 100%

In 2024 our outstanding product quality and exceptional service earned high

recognition and awards from leading industry consumers.Graduation group photo PV string layup and bussing machine

Client Training in 2024

Our training covered 21 clients attended by a total of 125 person-times

Globally Excellent Partner Award Outstanding Coopera-

tion Award

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Client Privacy Protection

The Company emphasizes client data security and management and has built a comprehensive information security

protection system through system development and continuous optimization. We have introduced the ISO 27001 Infor-

Number of training ses- Coverage rate of data se-

mation Security Management System establishing a standardized system that includes the Confidentiality Management

sions on data security curity and client privacy

System and the Information System Access Control Standards and embedding client privacy protection requirements

and client privacy training

into all management systems. During the reporting period we recorded no client data breaches.At the technical level we have implemented multi-dimensional security measures including strict access control client 2 times 95%

document encryption and antivirus software deployment effectively mitigating risks of client data leaks. At the person-

nel management level we place strong emphasis on raising awareness of information security among employees.Average data security and client privacy train-

ing hours per capita

During the reporting period we conducted two specialized training sessions on data security and client privacy 1.5 hours per capita

protection covering 95% of employees and significantly improving their awareness and practical information

security skills.

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Innovation-Driven Development

R&D Innovation Strategy

Autowell follows a “three-in-one” product strategy embracing the development philosophy of “marketing the current generation developing the next and reserving the future”.With technological innovation as the core driving force we are deeply engaged in the global transition to a low-carbon economy. We focus on the R&D of critical equipment in the PV

industry chain continuously increasing R&D investments. By leveraging core technology platforms we optimize our product portfolio drive clean energy technology advancements

help consumers reduce their carbon footprints and accelerate the global transition to green energy.In 2024 we established the “TA Project Team” dedicated to recruiting top-tier talent and assigning a project leader to each innovation task. We allocated necessary resources and

defined details such as clear goals timelines measurement and evaluation department monitoring frequency and indicators and evaluation criteria for each innovation project.Additionally we provided strategic support in terms of resource coordination and personnel training.Short-Term Goals Long-Term Goals

Focus on innovation-driven development in high-output high-yield intelligent and Strengthen R&D resource management establish a cross-departmental collaborative

compatible products continuously optimize low-oxygen crystal growth furnace wire innovation mechanism and enhance R&D efficiency to ensure a closed-loop cycle of

bonders AOI inspection equipment and aluminum wire bonders. technological breakthroughs and commercial value. Deepen the “PV+” technology

ecosystem leveraging an intelligent and digital R&D system to deliver high-value-added

green products contributing to the global community’s carbon neutrality goal.

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R&D Innovation Management System

At Autowell we place great emphasis on building and refining our R&D management system continuously strengthening our innovation capabilities through multi-dimensional and

systematic initiatives. In terms of R&D platform management we are committed to developing an efficient and collaborative technology R&D platform to integrate resources optimize

processes and enhance efficiency. In terms of institutional system we continuously improve our R&D management system clarify roles and responsibilities and standardize R&D pro-

cesses to ensure that innovation activities remain standardized and sustainable. Meanwhile we actively explore and refine our R&D models fostering cross-departmental collabora-

tion and open innovation to respond flexibly and efficiently to market changes and technological challenges. Through these measures we have gradually established a science-based

and highly efficient R&D innovation system laying a solid foundation for continuous technological breakthroughs and product advancements.Project monitoring and management

Approved Approved Completed

Project implementa-

Project Project initiation Project budget man- tion management Project settlement

request management agement management Ended

Rejected

R&D management model

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R&D Innovation Investment Development of R&D and Innovation Systems

To build a scientific and efficient innovation and R&D system the Company

The company continues to strengthen R&D innovation with R&D expenditures of 2024 reaching RMB

has systematically advanced system development covering various perspec-

430.3609 million an increase of RMB 103.0532 million year-over-year accounting for 4.68% tives such as project lifecycle management innovation incentive mechanisms

of annual operating revenue. R&D performance assessments and company-wide innovation participation.Additionallythe company maintains a highly educated and skilled R&D team. As of end-2024 R&D We have formulated and implemented a series of management systems in-

1065 21.71% cluding the Project Initiation and Management Process the Project Reward personnel totaled representing year-on-year growth. System the Performance Appraisal System the Reward System for Rational

Suggestions and the Technology Personnel Training System. These policies

“3+12+3” R&D Innovation Platform provide a standardized and sustainable institutional framework to support in-

novation and R&D activities.To comprehensively enhance its technological innovation capabilities the Company has built a

full-spectrum innovation platform covering management technology R&D and industrialization of Innovation incentive system Purpose Targeted

innovation outcomes. This platform is designed to create a seamless innovation chain from tech- employees

nology exploration to industrial deployment ensuring sustained technological advancements and Talent Recommendation Reward System

commercial applications. for all Employees Recommend external professionals All employees

Sci-tech Talent Training System Motivate improvement of technical capabilities All employees

R&D Manage- 3 key management bodies—the Project Management Committee Standardization Manage- Major technological innovations

ment Platform ment Committee and Experimental Center Management Committee—are responsible for coor-

Li Wen Craftsman Cup Evaluation and breakthroughs All employees

dinating and making strategic decisions on major technological and management innovations.Rational Suggestion Reward System Motivate product optimization and technological upgrade All employees

Technology With a focus on PV semiconductors and lithium batteries this platform integrates expertise in Solidify and protect technical

mechanical electrical electronic optical machine vision robotics and computer technolo- Patent Reward System achievements R&D personnelInnovation Plat- gies. It comprises 12 laboratories equipped with state-of-the-art devices such as non-destruc-

form tive cutters nanosecond infrared lasers and Beckhoff systems providing a solid foundation for Scientific Research Project Reward Motivate innovation of R&D projects

technological innovation. System and technologies R&D personnel

Talent Promotion System Management and professional skills Technology This platform comprises 3 major innovation hubs—the Jiangsu Engineering Technology improvement R&D personnel

Industrialization Research Center Jiangsu Enterprise Technology Center and Jiangsu Postdoctoral Research Base—to bring together industry academia and research resources continuously advancing Reward System for Organized

Platform Implementation of Sci-Tech Encourage the transformation of new products and technologies in line with market needs and our corporate strategies.Achievements sci-tech achievements

R&D personnel

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R&D and Innovation Model

The Company consistently prioritizes technological innovation and client needs as its core driving forces. Centered around product lines and supported by digital IT solutions we

have developed an innovation and R&D model featuring “One Focus and Five Transformations”. This client-centric mode helps enhance innovation efficiency and commercializa-

tion capabilities through the standardization digitization collaboration intelligence and agility of the R&D process. It provides systematic support for technological breakthroughs

and product upgrade.R&D Model

One

Focus Focus on independent innovation Product R&D

Sales Customization

contract

One Focus Corporate Product Project man-

and Five strategy planning

Independent

R&D agement

Transformations Product opti-

mization

* Adhering to high-end product positioning

* Ecosystem-based quality management

Five * Integrating upstream and downstream

Transfor- quality management with comprehensive

mations corporate management Technology Platform de-

* Panoramic information platform (SAP) R&D velopment

* Strategic operation and management

Technological

development

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Innovation Technology Reserves and Ongoing R&D Projects

As an innovation-driven enterprise our company has established a comprehensive R&D system consisting of four fundamental supporting technologies and eleven core ap-

plication technologies through continuous high-intensity R&D investment. These technologies have been implemented across multiple key products in our main business

operations forming our core product portfolio covering photovoltaic wafers solar cells and module components. To maintain the leading edge of our core technologies we

consistently monitor technological advancements throughout the photovoltaic industry chain electrochemical energy storage supply chain and semiconductor packaging

and testing sector with particular emphasis on emerging processes and innovative technologies in downstream applications. Through years of sustained R&D investment

and technological accumulation we have developed proprietary core technological capabilities in photovoltaic module string welding solar cell processing silicon wafer

precision inspection monocrystalline silicon ingot growth lithium battery/energy storage module assembly and semiconductor wire bonding.During the reporting period the company had 18 R&D projects in progress including 2 sub-tasks under the National Key R&D Program (Sub-task Nos.: 2023YFB4202603-5

2023YFB4202605-03).

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R&D and Innovation Initiatives

The Company has implemented a series of systematic initiatives to enhance innovation efficiency and technology commercialization including optimizing the organizational structure

establishing innovation incentive mechanisms implementing full-lifecycle project management and conducting regular reviews and evaluations.Optimizing the innovation Multi-dimensional innovation incen-

R&D talent development

R&D organizational structure tive mechanism

* The Talent Development Center in collaboration with business * Motivate employees by offering financial incentives and incor-

* We have established the “TA Project Team” dedicated to units has built a key position course map aligned with R&D porating patent applications into position-level evaluations

recruiting high-end talent. position track requirements. Through focused discussions and fostering creativity.* Each innovation project is assigned a dedicated project workshops the center defines career paths and learning needs * Continuously improve design R&D and innovation proposals

leader responsible for setting innovation goals progress while guiding industry experts in extracting replicable core and organize quarterly R&D innovation awards.plans measurement and evaluation departments monitor- knowledge. In 2024 we introduced external R&D professional * Launch the annual R&D Innovation Incentive Program featur-

courses such as the Systematic Learning Map Development ing the “Autowell Star” R&D and Innovation Award to stim-

ing frequency and indicators and assessment standards.Project to equip R&D personnel with fundamental knowledge ulate the team’s innovation vitality and highlight the value of

specialized skills and related tools enhancing R&D efficiency innovation.and quality.* In 2024 90% of R&D personnel participated in training pro-

grams accumulating a total of 75 training hours.Full-lifecycle project man- Regular reviews and evalua- Industry-academia-research collabo-

agement tions ration

Set up the dedicated Project Management Department to We regularly convene work meetings to comprehensively as- In collaboration with Nanjing University of Science and Tech-

oversee R&D projects through their entire lifecycle covering sess sales products and R&D progress. Through in-depth anal- nology we have jointly applied for the Jiangsu Provincialproject initiation planning execution and completion. By im- ysis of market trends and emerging process technologies we Industry and Information Technology Department’s “Manu-plementing science-based process controls and rigorous prog- ensure that R&D activities remain closely aligned with market facturing Powerhouse 1650 Specialized Project” conducting

ress monitoring the department ensures that each R&D project demands. coordinated technical research. Through industry-education

advances efficiently meets deadlines and achieves the targets integration and collaborative innovation we leverage comple-

in a high-quality manner. mentary resources to further enhance our technological inno-

vation capabilities.

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R&D Innovation Achievements

As an industry pioneer in technological innovation Autowell continuously drives the commercialization of innovation transforming numerous cutting-edge research achievements

into highly competitive products. These innovations help clients reduce costs and improve efficiency accelerate technological advancements and inject strong momentum into in-

dustry development.Innovation Awards

Key product lines Commercialization achievements

Over 10% increase in production efficiency for whole-line capacity in metallization enabling

clients to develop and mass-produce new high-efficiency cell application technologies.Autowell

PV First Prize of 2024 Science and

Technology Award Recognized

The 0BB process stringer helps clients reduce silver consumption by more than 10%. by the Jiangsu Mechanical

Breakthroughs in BC process equipment contribute to power output increases of at least 5%. Engineering Society

Equipment is designed to leverage high-capacity advantages.Autowell

Second Prize of Jiangsu

Our wire bonding-related equipment has achieved world-leading performance and has been Provincial Science and

Semiconductors

granted 12 utility model patents. Technology Award

ATW XuRi

Wuxi Engineering Technology

The oxygen content control technology of silicon ingots produced by SCEC equipment is Research Center

world-leading.Silicon ingot In 2024 the intelligent ultra-low-oxygen crystal growth furnace was recognized as a first-set

major technical equipment in the Suzhou-Wuxi-Changzhou region.The next-generation intelligent prismatic cell EES modules/PACK assembly line developed for ATW XuRi SCEC

Lithium-ion battery Specialized and Innovative Specialized and Innovative

the CTP process has improved production efficiency by over 60%. SME in Jiangsu Province SME in Jiangsu Province

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IPR Protection

The Company has been committed to an innovation-driven development philosophy and recognized intellectual property right (IPR) protection as a crucial part of its sustainable

development strategy. We strictly comply with the Patent Law of the People’s Republic of China and other relevant laws and regulations. By actively applying for patents and software

copyrights we ensure comprehensive IPR protection safeguarding our innovation-driven growth.IPR System Development

Since 2016 when we first obtained national IPR management system certification we have maintained effective system operation and established a dedicated IPR team. The team

currently consists of 11 IPR engineers including 9 patent attorney qualification holders and 5 Jiangsu Provincial IPR Engineer Training Certification holders.IPR Management Measures

In terms of institutional development to

enhance the standardized management

of internal IPRs we have established a

comprehensive IPR management system

based on the national standard Enterprise

Intellectual Property Management (GB/T

29490-2013). This system includes the IPR

Management Measures the Trademark

Management Regulations the Patent

Management Regulations and the IPR Re-

ward System among others.

7071

Reward System for Rational

Suggestions

IPR Reward System

Business Secret Management

System

Copyright Management System

Trademark Management System

Patent Management SystemNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

IPR Management

The Company has established an IPR database and ensured systematic management and dedicated funding. By implementing a patent planning and decision-making mechanism

alongside a risk warning system we provide robust legal protection for our research achievements strengthen the IPR protection framework and facilitate the compliant transforma-

tion and value realization of innovations.Management Mechanism

Patent planning and decision-making mechanism Patent risk warning and emergency response mechanism

Full-process man- Review and evalua- Documentation and Contract review Prevention-oriented Coordinated collab- Science-based deci-

agement tion review approach oration sion-making

Throughout the entire The IPR Department re- The IPR Department is The IPR Department Conduct routine The Compliance Man- Tailor rational response

process from product views and evaluates the responsible for drafting reviews key provisions monitoring and early agement Department strategies for specific

R&D and design to relevant technologies and reviewing docu- of IPR licensing and warning of patent risks R&D Department and situations based on

subsequent optimiza- for which IPRs are to be ments related to IPR transfer agreements. to identify and mitigate Marketing Department objective facts and

tion and improvement obtained and archives acquisition procedures. potential risks at an work closely together to professional analysis

relevant departments all records related to early stage. respond to patent risks. to ensure effective and

are responsible for or- the acquisition process. feasible measures.ganizing new structures

methods processes or

confidential business

information. After inter-

nal approval they can

submit applications to

the IPR Department.

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To enhance employees'capabilities and awareness regarding IPR application and pro- Integration of Informatization and

tection we have developed a specialized IPR training program. The training covers a

variety of topics including business secret protection for all employees practical train- Industrialization

ing on overseas patent applications and infringement case analysis for the IPR team To establish a comprehensive information management system covering the entire busi-

and patent documentation interpretation and design avoidance training for the R&D ness process including marketing product R&D manufacturing and quality control the

team. Through these targeted training sessions we have effectively improved the pro- Company has built an order lifecycle collaboration management system driven by client

fessional skills and confidentiality awareness of employees in different roles thereby needs. This initiative promotes the profound integration of business process standard-

laying a solid foundation for our IP management. ization with informatization.New Additions in 2024 Total Digitalized and Systematic Management

In accordance with two national standards

New Applications New Grants Applications Grants GB/T23001-2017 Integration of Informati-

zation and Industrialization Management

Systems—Requirements and the GB/T23006-

Invention Patents 132 149 658 260 2022 Integration of Informatization and

Industrialization Management Systems—Re-

quirements for Enhanced Capability Grading

Utility Model Patents 485 170 1839 1368 we have systematically developed a man-

agement system that integrates informati-

zation and industrialization. This system has

embedded information technology deeply

Design Patents 2 3 9 6

into various operational and production

processes significantly enhancing business

coordination efficiency and management ef-

Software Copyrights 67 23 174 128

fectiveness. Following a rigorous evaluation

we successfully obtained our first Integration

of Informatization and Industrialization Man-

Others 35 40 212 209

agement System Certificate in July 2021 and

renewed it in August 2024 after the initial

Integration of Informatization and Industrialization

certification expired marking a new phase in Management System Certificate

Total 721 385 2892 1971 our digital transformation journey.

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Digitalization Development Initiatives

We continue to advance our “Smart Manufacturing” strategic plan. With visualization digitalization and intelligence as the development goals we have deeply integrated innova-

tion factors in digital technologies process innovation and organizational structure. By deploying advanced digital and intelligent technology platforms we have comprehensively

upgraded our production processes and systematically optimized business workflows significantly enhancing the intelligence level of our manufacturing system. During the reporting

period centered around our SAP system we continuously optimized the five key IT systems—OA (Office Automation) SRM & MCS (Supplier Relationship Management & Manufactur-

ing Control System) WMS (Warehouse Management System) HRM (Human Resource Management) and E-learning ensuring seamless connectivity between master data and busi-

ness data.Optimize management Logistics and transportation

Integrate resources for centralized allocation to Unified allocation efficient distribution plus GPS positioning

improve efficiency and reduce fault tolerance.Achievements

in promoting

intelligent

logistics center

Improve quality Improve 5S management

Eliminate quality hazards caused by storage Integrate factory sites and ensure standard and tidy

environment and manage storage of materials in the surrounding environment.first-in first-out principle.

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Win-win Cooperation

Supplier Development Principles

Supply Chain Supplier Admission Process

Management

Supplier information acquisition

At Autowell we advocate responsi-

ble procurement. We have formulat- * We leverage multiple channels to gather supplier information including but not limited to online platforms direc-

ed a series of supplier management tories phone inquiries newspapers magazines and industry journals. Acceptable type

* Additionally we accept direct supplier submissions and recommendations from third-party organizations ex-

policies including the Supplier

panding our information sources and enhancing our understanding of potential suppliers.Management and Relationships * If a competitor is using the sup-

and the Supplier Development plier it may be considered but

and Approval which define the Supplier matching and screening a clear explanation is required.requirements for supplier admis- * Agent-based suppliers must

sion review and other processes. have their qualifications veri-* After acquiring supplier information we conduct thorough verification to ensure authenticity. fied with the authorizing entity

Additionally we organize supplier * We assess the category style and quality other factors of the supplier’s products to determine the

before approval.training and empowerment activ- level of compatibility with our business needs ensuring selected suppliers align with our operation-

al requirements. * For equipment components ities to foster mutual growth and we prioritize direct manufactur-

achieve win-win cooperation with ers over intermediaries.our suppliers. Supplier documentation collection

Supplier Development * We collect key documentation from suppliers including company profile business license organization code certificate tax registration certificate credit certification proof product brochures and contact details to gain a

and Admission deeper understanding of the supplier’s qualifications and operations.Non-acceptable type

To ensure the high quality and sta- Comprehensive evaluation and review

bility of our supply chain we have * Suppliers introduced or oper-

established a standardized supplier ated by former employees are

admission mechanism strengthen- * We conduct supplier interviews and investigations to verify the authenticity of submitted documents. On this generally not considered.basis we perform a comprehensive supplier evaluation and accurately fill out the Supplier Admission Evaluation

ing product quality control at the Form and Supplier Review Form. * Suppliers established for less

source. * We will establish formal cooperation with suppliers that meet evaluation standards while those failing to meet than one year are generally not

the requirements will be recorded in the non-approved supplier database. considered.

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Daily Supplier Management

The Company places a high premium on daily supplier management by continuously enhancing its supplier oversight capabilities through initiatives such as the establishment of a

comprehensive supplier database a regular supplier performance evaluation mechanism and digital supplier management tools.A comprehensive suppli- Regular supplier perfor- Supplier classification Enhanced supplier com- Digital supplier manage-

er database mance evaluation management munication ment system

We have actively developed To ensure supply chain We rank suppliers based We maintain close com- Leveraging digitalization

a comprehensive supplier quality and stability we on procurement spend- munication with suppliers and information technolo-

database which includes sup- have implemented a regular ing categorize them into and collaborate on busi- gy we have implemented

plier company names contact supplier performance evalua- three types (type 1 type ness planning. We actively the Supplier Relationship

details and product offerings tion mechanism. We conduct 2 and type 3) and imple- discuss problem-solving Management (SRM) system

ensuring a deep understand- objective and comprehensive ment classified supplier strategies with them en- to digitize suppliers'infor-

ing of supplier information. assessments based on key cri- management in terms of courage them to propose mation such as basic infor-

teria such as product quality quality costs evaluation innovative ideas and mation qualifications and

and on-time delivery. These etc. work together to improve evaluations. This system

evaluations provide a reliable supply chain efficiency enhances the transparency

basis for our procurement achieving mutual benefits and efficiency of supplier

decisions and incentivize and win-win results. management.suppliers to continuously

improve their products and

services.

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Supplier Supervision and Review

The Company conducts supplier assessments based on the Periodic Supplier Performance Evaluation Form (for standard parts and processed parts). Through on-site inspections and

other evaluation methods we regularly assess supplier quality control delivery capabilities and compliance ensuring an up-to-date understanding of suppliers'operational condi-

tions. Additionally we implement targeted supervision and review measures for different types of suppliers and adjust cooperation strategies based on evaluation results.Supplier supervision and audits

Key audit points Audit requirements

Quality control system Suppliers must establish a comprehensive quality control system to ensure product consistency and stability.Flexible delivery capability We value suppliers'flexible delivery capability meaning they are able to maintain timely deliveries even during demand surges ensuring supply stability.Compliance risk assessment We strictly inspect supplier compliance requiring adherence to laws business ethics and environmental regulations to minimize compliance risks.Supervision Mechanism for Standard Parts Suppliers

Level Level A Level B Level C Level D

Standard Score A ≥ 80 65 ≤ B ＜ 80 50 ≤ B ＜ 65 D ＜ 50

parts supplier

supervision

(1) Suspend new product (1) Suspend new product development; Give priority to Lower the level development; (2) Ask the supplier to make the supplier in of priority in improvements and discuss with the

Cooperation new product new product (2) Ask the supplier to make

development development improvements and discuss with the

supplier on the subsequent product

model supplier on the subsequent product quality management plan and

quality management plan and improvement plan. If the supplier fails to

improvement plan. move to Level C it will be removed from

the List of Qualified Suppliers.

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Unlike standard parts suppliers Autowell places Supplier Empowerment

special emphasis on the information security man-

To enhance suppliers'overall capabilities and enable them to better support our business development we have imple-

agement capabilities of its process parts suppliers.mented various supplier empowerment initiatives including regular supplier conferences best practice sharing and

To ensure effective control of supply chain informa-

training programs continuously strengthening supplier competitiveness and innovation capacity.tion security risks we conduct an information se-

curity management assessment for these suppliers

every six months. We value close collaboration with both primary and auxiliary material suppliers. We hold regular

on-site meetings to discuss key topics such as product performance application trends new

product developments and stability. This deep engagement fosters mutual growth and ensures a

Information security audits for processed parts highly efficient and stable supply chain.suppliers Regular Communica-

tions During the reporting period we held our annual supplier conference under the theme

“Together Through Challenges Advancing Hand in Hand”. The event brought together

Hold discussions and draw up 73 suppliers whose cumulative procurement volume accounted for 61% of our annual

Step1 continuous improvement plans

total.which can be implemented after

being confirmed by SQE.* We conduct on-site visits to industry-leading suppliers drawing on advance practices and then

sharing them with other suppliers for improvement.* We select key suppliers to monitor the implementation of enhancement measures assess their

effectiveness and continuously tracks progress. These efforts are rolled out in phases to im-

prove supplier capabilities and ensure high-quality material supply.SQE keeps records or visits the Supplier Manage-

supplier to verify whether the ment Enhancement

Step2 improvements meet specific Measures During the reporting period we visited 50 top-performing suppliers extracting 9 key

requirements. improvement measures for broader adoption. Additionally we selected 11 key suppliers

for improvement implementation. In 2024 our material inspection pass rate improved by

1.3% compared to 2023 successfully achieving our quality improvement target.

According to the improvement

status update the List of

Step3 Qualified Suppliers so as to We carefully design and deliver professional training courses tailored for key supplier personnel

build a harmonious supply chain Supplier Training effectively enhancing their operational execution management skills and suppliers'core competi-

ecosystem. tiveness.

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Sustainable Supply Chain

The Company actively promotes the sustainable development of its supply chain by setting requirements for suppliers in areas such as environmental performance employee rights

and interests protection and occupational health and safety. We have put in place a strict evaluation and assessment system to ensure suppliers adhere to corporate social responsi-

bility and sustainability principles.Building a Sustainable Supply Chain

* Establish strict environmental and energy efficiency assessment standards for suppliers and evaluate them based on energy consumption emissions control resource utilization and other envi-

ronmental performance factors to ensure that effective environmental protection and energy conservation measures are implemented during their production.* Give priority to suppliers with green product certifications and eco-friendly raw material certifications procure green equipment such as PV equipment and lithium-ion battery equipment as well

as environmentally friendly metals non-metal materials and recyclable materials ensuring compliance with our environmental standards from the source. As of now we have obtained multiple

Green Procurement green procurement certifications.* Ensure that suppliers uphold ethical standards including fair labor practices and human rights protection.* Require suppliers to adhere to the principle of equality oppose all forms of discrimination and guarantee employees'equal rights and opportunities in recruitment training promotion and other

stages; Conduct regular audits and assessments on suppliers'employee management practices and those found engaging in discriminatory behavior will face contract termination or other correc-

tive actions.Responsible Procure- * Maintain transparency in procurement processes and supplier relationships to ensure transparent supply chain operations.ment * Leverage procurement decisions as a lever for social equity and positive community impact supporting economic development in supplier communities.* Establish supplier health and safety assessment standards covering areas such as work environment safety facilities and employee health monitoring to ensure suppliers provide a safe and

healthy workplace for their employees.* Conduct health and safety inspections during the supplier selection process to verify compliance with our health and safety requirements.Occupational Health * Sign safety agreements with suppliers clearly defining mutual responsibilities and obligations regarding employee health and safety and ensuring that suppliers strictly comply with relevant regu-

and Safety lations and our requirements during production.* Require suppliers to sign the Supplier Integrity Agreement which explicitly outlines their responsibilities and obligations regarding ethical integrity including compliance with laws and regulations

prohibition of commercial bribery and the establishment of anti-corruption policies.* Implement a comprehensive supplier evaluation mechanism to regularly assess and monitor suppliers for ethical integrity including business ethics contract fulfillment and after-sales service

Transparent Procure- quality.ment

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Sustainable supply chain performance in 2024

Development Stage Daily Assessment

At the supplier development stage we recognize sustainability We implement a dynamic ESG assessment mechanism to en-

factors as key evaluation criteria such as whether or not it has sure that suppliers continuously comply with sustainability re-

obtained the ISO 14001 environmental management system quirements in their daily operations. Assessment methods in-

certification etc. We conduct comprehensive assessments clude regular audits on-site inspections and surveys to gain a

of the ESG performance of our suppliers to ensure that they Responsible (Green) procurement for comprehensive understanding of suppliers'ESG performance.comply with our standards and requirements in terms of en- standard parts (RMB 10000)

vironmental protection social responsibility and corporate

governance. 215417

Assessment and

Evaluation for

Sustainable Sup-

ply Chain Perfor-

mance

Exit Mechanism Incentives and Guidance

We put in place a strict exit mechanism for suppliers. Once a For underperforming suppliers we provide guidance and im- Number of standard parts suppliers certi-

supplier is found to exhibit serious ESG problems we will deal provement measures to help them address deficiencies. fied with ISO 14001

with it in accordance with the exit mechanism including warn-

ings suspension of cooperation termination of contracts and For suppliers with outstanding ESG performance we offer ad-

other measures. ditional cooperation opportunities and preferential policies to

encourage continuous improvement in ESG practices. 62 suppliers

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In addition to sustainability performance assessments we enhance suppliers'aware-

ness and capabilities through measures such as targeted sustainability training Supply Chain Stability

programs and awareness campaigns fostering sustainable development across the

supply chain. Autowell is committed to ensuring a stable and secure supply chain with significant

progress in local procurement. To effectively mitigate potential risks arising from sup-

Empowerment for the Sustainable Supply Chain ply disruptions we adopt proactive planning and flexible responses.Incorporate ESG standards into supply chain agreements clearly Over 48% of our key suppliers are based in Jiangsu Prov-

defining the responsibilities and obligations of both parties to Local procurement im- ince covering critical segments such as raw material sup-

Sustainability Agreement Signing raise suppliers'ESG awareness. plementation ply parts manufacturing and logistics strongly supporting

the stable operation of our production lines.Conduct specialized sustainability training programs on topics

such as energy conservation and carbon reduction technologies

employee welfare corporate governance structures and busi-

ness ethics and integrity. These programs educate suppliers on

the importance of sustainable development related regulations

* To reduce regional risks and align with the trend of domes-

Targeted ESG Training and policy requirements and best practice cases strengthening

tic sourcing we are actively expanding our supplier base in

their sustainability management capabilities. Expanding supplier re- other regions.sources * Focus on developing high-quality domestic suppliers to

optimize the supply chain deployment and enhance our

Share our ESG philosophies and practice outcomes with sup- stability.pliers and other stakeholders through regular ESG reports ESG

forums and other activities promoting sustainable development

ESG Awareness and Education across the entire supply chain ecosystem.* Develop inventory plans for bottleneck materials and long-

lead-time items based on annual sales forecasts.* Implement multi-source development and reserve strate-

Adopting flexible pro- gies for core materials and low-volume structural parts.Total Supplier ESG Total Pparticipants of Supplier

curement strategies * Regularly monitor supplier capacity to ensure supply sta-

Training Hours ESG Training bility.

5 130 * Adjust procurement strategies based on monitoring re-sults ensuring stable material supply and delivery.hours person-times

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Contributing to Industry Development

Local procurement perfor- Promoting Communication across the Industrial Chain

mance in 2024 The Company has established stable and sound cooperative relationships with both upstream and downstream partners in the industrial

chain facilitating communication and collaboration and actively promoting industry-wide synergy and development.Total number of standard

parts suppliers Annual Supplier Partner Appreciation Event

930 suppliers During the reporting period we held our Annual Supplier Partner Appreciation Event under the theme “Together Through Challenges Advancing Hand in Hand”. We summarized our supplier cooperation for the year outlined expectations for fu-

ture collaborations addressed suppliers'concerns and awarded suppliers with outstanding performance during the report-

ing period.Number of standard parts

suppliers in Jiangsu Prov-

ince

447 suppliers

Number of new standard

parts suppliers

153 suppliers

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Receiving Research Visits

We actively host on-site research visits from industry-related departments and

personnel showcasing our technological achievements helping them under-

stand the technological advancements and plans in both the Company and the Receiving the China Photovoltaic Industry Association Delegation

industry and providing opportunities for further collaboration.In October 2024 to gain deeper insights into the technological devel-

opment of the PV industry and assist relevant ministries in formulat-

ing the 14th Five-Year Plan the China Photovoltaic Industry Associa-

Receiving the Fudan Entrepreneur Delegation

tion’s expert delegation conducted an on-site survey at the Company.We led the delegation through our cell and module equipment man-

ufacturing center and exhibition hall offering detailed explanations

In April 2024 we hosted the Fudan Entrepreneur Delegation on the technology R&D and market applications of our core products.to visit the battery and module production workshops and We also shared our development roadmap and provided a compre-

the product exhibition hall. We provided a detailed intro- hensive showcase of our excellent achievements in the intelligent PV

duction to the production processes technology R&D and equipment sector. This visit provided valuable support for both side

market applications of PV products and engaged in in-depth in discussing industry trends and promoting the healthy and orderly

discussions on future cooperation prospects the latest ad- development of the industry.vancements in PV technology market trends and necessary

adjustments.

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Participation in Industry Events

The Company actively participates in various industry events such as seminars and exhibitions to showcase its cutting-edge technological achievements engage in in-depth com-

munication and discussions with other companies in the industry work together to explore the path of technological innovation and jointly promote industry development.Participation in the China International PV and Energy Storage Participation in the EESA China International Energy Storage

Industry Conference Expo

In November 2024 as a renowned intelligent equipment manufacturer

in the PV energy storage and semiconductor sectors we participated In September 2024 we participated in the 3rd China International

in the 7th China International PV and Energy Storage Industry Con- Energy Storage Expo held at the National Exhibition and Conven-

ference. Our representative delivered a speech on the key equipment tion Center in Shanghai. At the Expo we showcased our innovative

deployment in the PV and energy storage industry chain integrated technologies and exceptional product strength engaging with pro-

intelligent manufacturing of hardware and software and SCEC’s fessionals and attendees to discuss the latest technologies and de-

third-generation high-quality intelligent crystal growth equipment. We velopment ideas in the energy storage field and contributing to the

also shared and discussed technological developments and trends deep integration and high-quality development of the new energywith industry partners exploring potential business synergies. industry. During the award dinner we were honored with the“ MostInfluential Company Award 2024”.

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Strengthening International CommunicationThe Company adheres to its long-term mission of “Build Smart Factory with NewParticipation in the 2024 SEMICON CHINA a huge event in Technologies Drive Global Intelligent Manufacturing”. We actively participate in in-

the semiconductor industry dustry exchanges and exhibitions in countries and regions such as Indonesia Turkey

Europe and the United States. With a panoramic perspective we are optimizing our

supply chain deployment product offerings and international development strate-

gies while promoting global industry technological advancements and market devel-

In March 2024 we participated in SEMICON CHINA the world’s

opment.largest and most prestigious annual semiconductor industry event.As a competitive semiconductor equipment supplier in China we

showcased our hybrid module copper wire bonders multi-function

die bonders and fully automated laser cutters. We joined global Participation in the Indonesia International Solar Pow-

suppliers and service providers in the semiconductor industry to er Exhibition

share insights into industry developments and cutting-edge tech-

nological advancements. In March 2024 the Indonesia International Solar Power Exhibition

was held in Jakarta. Our core overseas team showcased a range of

intelligent PV manufacturing equipment and industry solutions

and engaged with professional visitors and industry peers to dis-

cuss the development trends and innovative technologies in the

solar PV sector.

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Participation in the SOLAREX ISTANBUL Participation in the Intersolar Europe

In April 2024 the SOLAREX ISTANBUL took place at the Istanbul At the international exhibition held in Munich in June 2024 we

Expo Center. We exhibited a variety of intelligent PV equipment showcased our intelligent manufacturing solutions covering the

innovative energy storage module/PACK assembly lines and smart entire PV industry chain. These solutions span from silicon crystal

manufacturing system solutions. We engaged in in-depth discus- growth silicon wafer manufacturing battery production to PV

sions and exchanges with attendees sharing our experiences and module packaging. We comprehensively demonstrated our strong

insights while actively absorbing new ideas and technologies from technological capabilities and innovative achievements in the field

the industry. We are committed to working together with industry of intelligent PV manufacturing.partners in Turkey and globally to contribute to the green energy

movement worldwide. During the event our professional team led visitors through de-

tailed presentations and dynamic demonstrations providing an in-

depth understanding of how our innovative technologies support

efficient production quality improvement and cost control in the

PV industry. Our demonstration highlighted the limitless potential

and broad application prospects of our innovative technologies.

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Social Contributions

Participation in RE+ the U.S. International Solar

Energy Exhibition Tax Compliance and Lawful

Contributions

In September 2024 the RE+ U.S. International Solar Energy Exhibition The Company has always upheld the principles of integrity in business operations

was successfully held at the Anaheim Convention Center in California. and tax payments in accordance with the law strictly adhering to the Enterprise In-

For the first time we set up dual booths for PV and energy storage come Tax Law of the People’s Republic of China and other relevant tax laws and reg-

showcasing our latest intelligent manufacturing solutions and offering ulations. We fully fulfill our tax obligations and actively contribute to a fair and trans-

profound insights into the future energy transition. parent tax environment through compliant operations and proactive participation in

tax policy implementation. Looking ahead we will continue to adhere to lawful taxIn the same month we were invited to participate in the “How topractices fulfill our corporate social responsibilities and make greater contributions

Manufacture Solar Wafers Cells and Modules Competitively in the

to the sustainable economic and social development.United States” seminar co-hosted by RE+ and TaiyangNews. During

the seminar our representative gave a presentation focusing on our

innovative achievements and forward-looking strategies in PV manu- Tax Payments in the Latest Three Years

facturing and engaged in in-depth exchanges with participants.RMB 0.75 billion

RMB 0.64 billion

RMB 0.26 billion

202220232024

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Community Co-Building

Strengthening Community Engagement Promoting Local Employment

Autowell has established an effective communication and engagement mechanism Autowell actively supports local employment by providing job opportunities and

with local communities. The Company regularly interacts with community repre- training programs for local community members. Local residents are given priority

sentatives and neighborhood committees to understand community needs and in recruitment to expand employment opportunities within the region. Addition-

concerns. We actively participate in community meetings and events listen to resi- ally we organize vocational training and skill enhancement programs to improve

dents'feedback and suggestions and provide support for community development. residents'employability.During the reporting period we donated children’s playground equipment to Chun-

chao No. 3 Community contributing to the harmonious co-building of the commu-

nity.We also collaborate closely with local vocational schools through indus-

try-academia-research initiatives establishing the Autowell Intelligent

Manufacturing Academy to provide students with internship and employ-

ment opportunities.Community playground donation

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Social Welfare Volunteer Activities

Public Welfare Donations Autowell encourages employees to actively participate in volunteer

Autowell is committed to social welfare initiatives addressing the needs of various social groups and service initiatives and has established a dedicated volunteer team to

actively engaging in areas such as education poverty alleviation environmental protection and com- continuously contribute to society. These volunteer activities span vari-

munity services through charitable donations. In recognition of our dedication to philanthropy we ous fields including poverty alleviation environmental protection and

have been awarded the “Charitable and Caring Enterprise” title. community services with employees dedicating their free time to serving

those in need.During the reporting period we contributed RMB 1.8983 million to charitable and public welfare

causes.We actively donate educational supplies Participation in the Youth Volunteer Recognition Program

to local primary and secondary schools We donated children’s

establish scholarships and financial aid pro- playground facilities to

grams and support students in completing Social Welfare local communities contrib-

their education. As a member of the local Donation Initia- uting to the creation of a In March 2024 coinciding with the 61st anniversary of

education development foundation we Education Social harmonious and friendly

make monetary donations to foster region- tivesSector Sector community environment. Learning from Lei Feng Day and the 25th China Youth

al educational development. Volunteer Service Day the Local District’s Youth League

Committee and Wangzhuang Subdistrict Office jointlylaunched the “Promoting Lei Feng Spirit Shining Youth-ful Light” themed event to inherit the Lei Feng spirit andthe “Xinwu District Youth Volunteer Recognition Program

2.0” launch event. Our Youth Volunteer Service Team

joined the “Screw Team” Youth Volunteer Group ac-

tively embracing the Lei Feng spirit and fostering a strong

volunteer culture within the Company.Children’s Day Donation Initiative

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Participation in the“ Acts of Kindness Under the Sun” Charity Walk

Caring for Llonely EeldersIn May 2024 our employees participated in the “Acts of Kindness Un-der the Sun – 2024 Wuxi Charity Carnival & Eco-Friendly Charity Walk”

event held at the Taihu International Expo Center. Alongside nearly On Chongyang Festival (Double Ninth Festival) in

2000 philanthropists from charity organizations and public institutions 2024 our employees visited Wangzhuang Senior

and private enterprises our employees promoted public welfare and Care Center where they prepared and served

environmental sustainability through an eco-friendly waste-free walk. handmade dumplings for lonely elders sharing

The event featured environmental protection-themed checkpoints festive greetings and warmth. This initiative not

encouraging participants to adopt low-carbon and eco-conscious life- only provided a sense of belonging and care for

styles. During the walk our employees actively promoted environmen- the elderly but also allowed our employees to

tal protection knowledge advocated for green travel and helped raise experience the joy of giving reinforcing the tradi-

funds for the “Angel Project” an initiative dedicated to supporting tional Chinese values of respecting and caring for

children in difficult circumstances by fulfilling their small wishes offer- the elderly.ing humanitarian care and providing medical assistance.Total volunteering hours Total volunteers

5 hours 50 volunteers

90

Employee Volunteer Activities Statis-

tics in 2024Response to Issues Align with the SDGs

Governance * Corporate Governance * Anti-commercial Bribery* Internal Control and Risk Management * Anti-Unfair Competition

* Compliant Operations and Tax Management

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Corporate

Organizational A rational and rigorous governance structure is fundamental to the Company’s efficient operations Governance and serves as a solid foundation for its long-term development. We have established a governance Structure structure centered on the Shareholders'Meeting Board of Directors Supervisory Board and the management formed a governance mechanism featuring clear division of labor clear authority and

Governance Strategy responsibility coordinated operations and checks and balances among the decision-making body the supervisory body and the management and a governance and management structure that is

closely interconnected and efficiently synergistic.Autowell places great emphasis on corporate gov-

ernance. We strictly adhere to the Company Law Shareholders'Meeting

of the People’s Republic of China the Securities Strategy and ESG

Law of the People’s Republic of China the Code of Committee

Corporate Governance for Listed Companies the Supervisory Board Remuneration and

Rules Governing the Listing of Stocks on the STAR Appraisal Committee

Market of the Shanghai Stock Exchange and other

Board of Directors

relevant laws and regulations. We also fully meet Nomination Committee

other regulatory requirements issued by the Chi-

Secretary of the

na Securities Regulatory Commission (CSRC) con- Board of Directors Audit Committee

cerning corporate governance for listed compa-

nies. On this basis we continuously enhance our

General Manager

corporate governance system and optimize the

governance structures of the Shareholders'Meet-

ing Board of Directors and Supervisory Board. CFO

In our strategic decision-making process we take

into account internal and external environments

legal and regulatory requirements and stakehold-

er expectations ensuring clear governance goals.We also strengthen internal control enhance

disclosure transparency reinforce stakeholder

communication and continuously optimize and

innovate our governance practices.Currently our governance complies with all ap-

plicable laws regulations and CSRC regulatory

requirements. Our organizational structure

92

Risk Control and Audit

Department

Finance Center

HR Department

General Management

Department

Engineering Services

Center

Process Information

Department

Quality Department

Manufacturing Center

Sales Center

Strategic Procurement

Department

R&D Center

Autowell (Japan)

Autowell (Singapore)

Wuxi Polar

Polar PV

ATW Jiexin

Zhiyuan Equipment

ATW Coshin

SCEC

ATW XuRi

ATW Supply Chain

Leddo Technology

ATW Intelligent

Equipment

Securities Investment

DeptNotes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Governance of the Three Major

Corporate Bodies Directors and the Board of Directors

Shareholders and the Shareholders'Meeting Board Effectiveness Evaluation

The Shareholders'Meeting is the Company’s highest authority responsible for re- The Board of Directors serves as the executive body of the Shareholders'Meeting respon-

viewing and approving major corporate decisions. We strictly follow the Articles of sible for decision-making on the Company’s development goals and major operational

Association the Rules of Procedure for the Shareholders'Meeting and relevant laws activities. All directors actively study relevant laws and regulations fully understand

and regulations when convening Shareholders'Meetings. Voting is conducted on- their rights and responsibilities and diligently attend board meetings specialized com-

site and through a combination of on-site and online forms. mittee meetings and the Shareholders'Meeting to safeguard the legitimate rights and

interests of the Company and all shareholders. The Strategy and ESG Committee Audit

The Shareholders'Meeting follows a strict recusal and authorization system ensur-

Committee Remuneration and Appraisal Committee and Nomination Committee un-

ing that all shareholders particularly minority shareholders have equal standing

der the Board of Directors perform their professional functions in accordance with their

and can fully exercise their rights to information participation and voting. Mean-

respective work guidelines fully leveraging their expertise to conduct in-depth research

while the controlling shareholders and actual controllers uphold the principle of

and review of relevant matters. Together they provide strong professional support for the

integrity conscientiously fulfilling their obligations. Throughout our operations

Board’s science-based decision-making effectively enhancing our corporate governance

there have been no incidents that harm the legitimate rights and interests of the

standards.Company or other shareholders.Number of the Sharehold- Total resolutions discussed and reviewed Total board meetings Number of resolutions discussed

ers'Meetings at the Shareholders'Meeting and reviewed at board meetings

5241473

Number of resolutions rejected at the Shareholders'Meeting Number of resolutions rejected at board meetings

00

92 93Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Independent Directors Board Diversity

The Company highly values the indispensable role of independent directors in

The Company is committed to maintaining board diversity considering factors such as gender

enhancing the science-based and effective decision-making of the Board and

age educational background professional expertise work experience and cultural background

improving corporate governance. We strictly comply with the Measures for the

Administration of Independent Directors of Listed Companies in the selection of director candidates. Currently among the 9 members of the fourth Board of and other rele-

Directors there are 2 females 8 aged 50 and above and members with diverse professional back-vant laws and regulations as well as internal governance documents such as

grounds including technology finance management accounting and law. Each director contrib-

the Articles of Association the Independent Director System and the Working

utes to corporate decision-making based on their unique cultural perspectives social experiences

Rules of the Independent Directors'Dedicated Meetings . We have established

professional expertise and practical knowledge fostering collaboration checks and balances and

independent director positions and dedicated meetings actively cooperating

complementary strengths ultimately enhancing the board’s creativity.with independent directors in performing their duties and providing them

with independent office space and conditions during on-site work information Core

necessary for understanding the situation of the Company and space and ma- Name Director type technical Gender Age Education Technology Law Finance and Corporate Accounting management

terials necessary for their dedicated meetings. personnel

Upholding diligence and responsibility independent directors attend all board Ge Zhiyong Chairman Male 54 Master’s √

meetings as required participate in the Shareholders'Meeting and actively

engage in discussions and decision-making on major corporate matters. They

Li Wen Director √ Male 54 Master’s √

also maintain close communication with internal audit institutions and exter-

nal accounting firms conduct regular on-site inspections and interact with

minority shareholders to comprehensively check and oversee the Compa- Yin Zhe Director Male 53 Master’s √

ny’s operations financial health management and internal control systems

Zhou

among others. For key matters such as related-party transactions director and Director Female 56 Bachelor’s √

Yongxiu

senior management remuneration and the appointment of accounting firms

independent directors provide objective prudent and impartial professional Liu Shiting Director √ Male 55 Master’s √

opinions. During the reporting period they also participated in ongoing train-

ing programs for listed companies'independent directors further enhancing Associate

Jia Yinghua Director Female 47 √

their ability to fulfill their duties. Degree

Independent Associate

Sun Xinwei Male 58 √

Number of Number of inde- Proportion of independent director Degree

directors pendent directors directors on the Board

Independent

Bo Yuming Male 59 Ph.D. √

director

9 3 33.3% Yang Jian- Independent Male 54 Master’s √

hong director

94Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Supervisors and the Superviso- Disclosures

ry Board

The Supervisory Board serves as the Company’s over- The Company has established and implemented a comprehen-

sight body responsible for supervising the Company’s sive disclosure system including the Disclosure Management

financial health business operations and the perfor- System the Management System for Deferred and Exempted

Regularly disclosed reports

mance of duties by directors and senior management. Disclosures and the Accountability System for Major Errors in

The board consists of 3 supervisors including 2 exter- Annual Report Disclosures. These policies clearly define the 4

nal supervisors with market and legal backgrounds and scope of disclosures approval procedures for ad-hoc announce-

1 employee representative supervisor. All supervisors ments and designate the secretary of the Board of Directors

diligently fulfill their responsibilities conducting rigor- to be in charge of disclosures so as to disclose the relevant

ous reviews of the Company’s critical matters such as information truthfully accurately completely and in a timely Ad-hoc announcements

financial status major asset restructurings and relat- manner and ensure that all shareholders have an equal oppor-

ed-party transactions. They monitor and ensure that tunity to obtain information. Additionally we have developed a

directors and senior management perform their duties well-structured drafting review and disclosure process for regu- 140

in compliance with laws and regulations safeguarding lar reports ensuring that disclosures are authentic precise and

the legitimate rights and interests of shareholders par- complete.ticularly minority shareholders.Investor Relations Management

Number of Supervisory Board Meetings

The Company has established an Investor Relations Management System and strictly adheres to its principles of com-

14 pliance adequacy fairness efficiency cost-effectiveness integrity and interactive communication. The secretary of the Board of Directors is responsible for organizing and coordinating investor relations management while the Securi-

Number of Resolutions Reviewed at the Supervisory ties Investment Department serves as the functional department for investor relations.Board

50 Enhancing Investor Communication

Number of Resolutions Rejected at the Supervisory We have fully leveraged multiple channels and platforms to ensure multi-level multi-channel communication with

Board investors. These include designated media outlets the official website telephone fax email meetings on-site visits

0 roadshows and the SSE e-Interactive platform. By streamlining communication processes we facilitate investor par-ticipation.

94 95Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Communication

Specific Measures

method Investor Open Day

Designated media Timely disclose relevant corporate information through our designated

outlets media outlets. In 2024 the company successfully held three Investor Reception Day events during

which management discussed and exchanged views with investors on operational

performance and future development plans.Enrich and update our official website in a timely manner placing on

our official website relevant information of interest to investors such

Official website

as press releases company profile product operations statutory dis-

closures investor relations contacts stock quotes and so on.Set up dedicated investor inquiry lines fax services and email support

Telephone fax and

and leverage modern communication tools to conduct regular or ad-

email

hoc investor relations activities.Host shareholders'meetings earnings briefings investor communica-

Meetings and con- tion meetings (both in-person and online) and business presentations

ferences among others to actively engage with investors solicit feedback and

address their inquiries.Total annual + semi-annual cash dividends 774 million RMBfor 2024

Organize Investor Open Days and institutional research visits allow-

ing investors analysts and other parties to conduct in-depth on-site

On-site visits inspections participate in roundtable discussions and gain a compre- Percentage of profit distribution to net profit 60.85%

hensive understanding of our business operations strategic deploy- attributable to shareholders

ment and market positioning.Investor re-

lations man- SSE e-Interactive responses 66

Conduct roadshows in accordance with regulatory requirements when

Roadshows agement

executing major financing plans.Number of performance briefings 5

Actively monitor and respond to investor queries on the SSE e-Interac-

Online interaction

tive platform in a timely manner. Number of investor visits 157

96Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Protection of Creditors'Rights and Interests

During the reporting period we established the Rules on the Meetings of Convertible Bondhold-

ers to strengthen the protection of creditors'legitimate rights and interests through a well-struc- “Autowell Convertible Bonds”with a

tured system. total issuance amount of RMB

In 2023 we issued “Autowell Convertible Bonds” (Bond Code: 118042) with a total issuance

amount of RMB 1.14 billion successfully listed on September 1 2023. On June 24 2024 CSCI Rat-

billion

ings conducted a comprehensive assessment of our business operations and industry develop- 1.14

ment and released the 2024 Tracking Rating Report on the 2023 Convertible Corporate Bonds Is-

sued by Wuxi Autowell Technology Co. Ltd . (CSCI Ratings [2024] Tracking No. 390-01). Our issuer

credit rating was assessed as “AA-” with a “Stable” outlook while the rating for the “Autowell Our issuer credit rating was “Autowell ConvertibleConvertible Bonds” was also assigned “AA-”. assessed as Bonds” was also assigned

AA- AA-

Remuneration Management for Directors Supervisors and Management

In accordance with internal regulations such as the Articles of Association and the Senior Executive Compensation Management System the Remuneration and Appraisal Commit-

tee under the Board of Directors is responsible for formulating and reviewing remuneration policies and plans for directors and senior managers and setting performance appraisal

criteria for senior management. The remuneration packages of directors and supervisors are approved by the Board of Directors and the Supervisory Board and then submitted to the

Shareholders'Meetings for approval before implementation and the remuneration packages of senior management are approved by the Board of Directors and then implemented

with the cooperation of the Human Resources Department.For the remuneration system of the management we adopt the 3P (Position Performance Person) design model. This approach scientifically determines the remunerations of man-

agement by comprehensively considering multiple factors including job value performance individual capabilities and the Company’s overall performance. Additionally non-in-

dependent directors supervisors and senior managers receive remuneration based on their positions administrative responsibilities role execution and performance. They do not

receive separate allowances for their roles as directors or supervisors. Independent directors however are entitled to a fixed independent director allowance while external directors

(excluding independent directors) do not receive director allowances from the Company.

96 97Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Internal Control and Risk Management Strengthening Internal Control

Based on risk assessment results the Company implements

Internal Control control measures by integrating manual and automated

controls as well as preventive and detective controls ensur-

ing that various risks remain within an acceptable range. To

Developing the Internal Control System reasonably ensure the achievement of corporate targets we

have established control procedures and actively carry out

The Company has developed a comprehensive internal control system by formulating regulations such as the

multiple internal control measures including risk control au-

Working Rules of the Audit Committee under the Board of Directors the Internal Control System and the Internal

thorization control division of duties incompatible position

Audit System. We have also set up a comprehensive system of policies and processes from three levels: manage-

separation control accounting system control asset access

ment processes business processes and support processes to ensure the efficiency standardization and flexibil-

and record-keeping control and budget control. Additionally

ity in our operations. Additionally we conduct regular comprehensive reviews of our internal control system to

we conduct regular self-assessments of our internal control.maintain document relevance and effectiveness.The Risk Control and Audit Department reports to the Audit

Committee at least once per quarter covering but not limited

Internal Control Organizational Structure to the execution information of the internal audit plan and

issues identified during internal audits.Audit Committee under * Responsible for communicating supervising and reviewing internal and exter-

the Board of Directors nal audits. During the reporting period we conducted 11 audit projects.Following the completion of these projects we implemented an

online tracking system on the OA system to monitor rectification

* Professional audit team: We designate experienced auditors overseeing the progress. We achieved a 100% completion rate for audit issue

internal management system and internal control of both the parent company rectifications throughout the year.and subsidiaries.Risk Control and Audit * Issue rectification and recommendations: The Risk Control and Audit Depart-

Department ment identifies issues formulates corrective measures and provides recommen-

dations submitting written or electronic reports to the Audit Committee.* Follow-ups and evaluations: The Risk Control and Audit Department monitors During the reporting period our internal control system op-

the implementation of corrective actions evaluates the effectiveness of internal erated effectively with no material or significant deficiencies

control and ensures continuous improvement. identified in financial or non-financial areas.

98Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Risk Management

Effective risk management is the cornerstone of a publicly listed com-

pany’s stable operations and a key safeguard for achieving sustainable Business and functional departments

development. The Company is committed to establishing and contin-

Each business and functional department is the first responsible

uously improving a science-based and comprehensive risk manage-

body for risk management and is required to conduct a comprehen-

ment system to protect corporate assets enhance decision-making sive assessment of possible risks at the business level based on their

capabilities ensure business continuity maintain operational compli- First line of de-fense respective business process and prioritize them according to the

ance and uphold strict legal standards. This approach helps us identi- importance of the risks with the professional support of the risk man-

fy assess and respond to various risks in a timely manner strengthen- agement functional department.ing our risk resilience and core competitiveness.Second line of Securities Investment Department“Three Lines of defenseDefense” in Rrisk Conduct inspections and evaluations of risk management status and

Management response capabilities based on established risk response strategies

and management measures. Throughout this process the depart-

Risk Management System ment objectively assesses the actual effectiveness of business and

functional departments in risk management provides professional

In terms of institutional development we have formulated the Risk guidance and continuously monitors the implementation of correc-

Management Framework Document which clearly defines the orga- tive measures.nizational structure operational mechanisms management matrix

oversight and improvement measures and cultural development Third line of

requirements providing institutional support for risk management ef- defense

forts. Risk Control and Audit DepartmentRegarding the organizational structure we have established a “threeEvaluate the risk management performance of business and func-lines of defense” risk management framework under the leadership

tional departments based on internal control audits economic re-

of the Board of Directors. This framework delineates the roles and re-

sponsibility audits engineering project audits information system

sponsibilities of key departments including business and functional

departments the Securities Investment Department and the Risk audits and specialized audits and issue corresponding audit reports.Control and Audit Department ensuring the effective implementation

of risk management requirements.

98 99Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Compliant

Risk Management Measures

The Company has established an effective risk reporting mechanism and process enabling prompt responses Operations and Tax

to operational risks optimized resource allocation and the protection of legitimate corporate interests.Risk management measures Management

* The Company has established RCM (Risk Control Matrix) for procurement contracts funding projects Compliant Operations

inventory fixed assets and other business sectors. This matrix identifies common risk points based on

business processes defines key control measures assigns responsible departments and personnel and

The Company upholds the principles of integrity in opera-

specifies control documents and frequencies to ensure effective alignment of process risks and control.Risk identification and tions strictly adheres to compliance regulations continu-

* Responsible departments collect internal risk data through employee feedback and inspection records

collection ously optimizes its compliance management mechanisms

and gather external risk information via market research and industry reports based on laws and regula- and strengthens risk prevention measures. By enhancing

tions and internal systems. compliance reviews and fostering a strong compliance

* We have appointed Risk Management Coordinators to facilitate comprehensive risk management ensur- culture we ensure efficient compliant management to

ing a balanced approach between business development and risk control. support high-quality development.In 2024 the company established the Public Opinion Man-

Information organization We compile and analyze collected risk information develop risk assessment indicators and methodologies agement System Foreign Exchange Derivatives Trading

and analysis and determine risk levels and priorities. Business Management System External Financial Assis-

tance Management System and Annual Report Informa-

tion Disclosure Material Error Accountability System while

We prepare risk reports based on the collated and analyzed risk information which includes risk overviews

Risk reporting revising the Fundraising Management System further

assessment results and response strategies.strengthening the institutional foundation for compliance

management.Risk communication and We circulate risk reports to the relevant departments and Decision-making Committee and provide timely Additionally we actively promote system and process

feedback feedback on the results. improvements addressing compliance issues within busi-

ness and functional departments in terms of system and

process improvements supported by functional depart-

Risk monitoring and The Risk Control and Audit Department supervises and evaluates the preparation and distribution of risk re- ments. At the execution level departments review adher-

evaluation ports to ensure accuracy and timeliness.ence to systems and processes during audit projects and

provide recommendations for improvement.

100Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Legal Affairs and Contract Training Procurement Compliance Rrsk Training

In December 2024 we organized an on-site training session fo-

To enhance employees'awareness of legal cused on procurement contract risk prevention aiming to enhance

risks and contract management capabilities employees'risk awareness and response capabilities. The session

the Human Resources Department organized attended by 150 employees provided an in-depth analysis of risk

specialized Legal Affairs and Contract Knowl- points across the entire procurement contract lifecycle covering

edge Training sessions. Expert-led sessions contract clause drafting supplier qualification reviews and risk

covered key aspects such as contract drafting monitoring during contract execution. This training significantly

common legal risk prevention and key points improved employees'risk prevention awareness strengthening

concerning contract execution. The training compliance safeguards in procurement and contributing to our

adopted an interactive format combining stable and sustainable growth.theoretical instruction case studies and Q&A

sessions fostering engaging discussions.A total of 97 employees from 4 departments

participated significantly improving their

risk control capabilities in contract drafting

review and execution. This training provided Tax Management

strong legal support for our business opera-

tions.The Company actively strengthens tax management continuously reviewing and optimizing tax processes

to establish a science-based comprehensive and development-oriented tax management system. Addi-

tionally we place great emphasis on monitoring tax policy developments at both the national and local

levels closely tracking policy adjustments and updates. Through in-depth analysis of these changes we

evaluate their potential impact on tax operations and promptly adjust our tax policies and operational

guidelines. This ensures timely tax payments in accordance with legal and regulatory requirements while

effectively mitigating tax-related risks.

100 101Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Anti-commercial Bribery System improvement measures in 2024

System issuance System revision Continuous implementation

Anti-commercial Bribery Conflict of Interest Management

System Development SystemEmployees'Internal Relationship Anti-fraud and Whistleblowing Gift and Cash Gift Reporting and

Management Measures Management System Submission Management System

Procurement Integrity Agreement

The Company has issued sever-

al key regulations including the

Establish healthy integrity organiza- * Revise department responsibilities and * Clarify behavior norms and responsi-

Anti-fraud and Whistleblowing tional and personnel relationships clarify the deadline requirements for bilities for employees and suppliers.Management System the Con- and guide internal relationships to complaint communication and feed- * The company continued to imple-

back.flict of Interest Management create a sound professional devel- ment the gift and cash reporting and

opment environment. * Expand protection for whistleblowers handover policy with a total of 38 System the Gift and Cash Gift to include investigators and establish cases reported and handed over in

Reporting and Submission a mechanism for handling interference 2024.Management System and the with investigators'work.Employees'Internal Relation-

ship Management Measuresimplementing the “Autowell Regulating the Integrity of Business PartnersIntegrity Code of Conduct Red

In 2024 the Company continued to promote the Procurement Integrity Agreement further clarifyingLine” and providing strong

the behavior norms and breach of contract liabilities for suppliers. According to the agreement sup-

institutional support for its an-

pliers and their personnel are strictly prohibited from bribing our employees in any form including

ti-corruption and clean gover-

but not limited to gifts negotiable securities payment vouchers and valuable items. Additionally

nance activities. We have also

suppliers are not allowed to provide any form of economic benefits to our employees or their family

joined the China Enterprise

members such as housing decoration transportation or other conveniences related to weddings

Anti-fraud Alliance and the

funerals etc.Trust and Integrity Enterprise

Alliance where members ex- Regarding behavior norms the agreement stipulates that suppliers must not invite our employees to

change experiences take joint banquets fitness travel or entertainment activities that may affect integrity or fairness and must not

actions and share blacklists engage in any financial dealings with our employees or their relatives. Furthermore suppliers are ob-

creating a synergistic effort in ligated to monitor their employees'compliance with the integrity agreement and take action to stop

the fight against fraud. any violations. We also actively expand the reach of integrity promotion holding thematic integrity

promotion activities for key suppliers through supplier conferences to convey our integrity standards.

102Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Whistleblowing and Reporting Mechanism

Reporting Channels Whistleblowing channels

The Company encourages employees to actively participate in integrity-building efforts by providing various whis-

tleblowing channels such as an official website reporting portal and a dedicated email address to collectively contrib- Official website https://www.wxautowell.com/about/message

ute to creating a positive professional development environment.WeChat official

account Integrity at Autowell (WeChat ID: lianjieATW)

Reporting process

Complaint and whis- Email jubao@wxautowell.comEmployees can report violations through various channels.tleblowing

Discipline Inspection Department Wuxi Autowell

The Discipline Inspection Department receives the report and contacts the whistleblower within 3 Correspondence Technology Co. Ltd. No. 3 Xinhua Road Xinwu Report reception working days. District Wuxi City Jiangsu Province

Establishment of

an investigation The Company establishes an investigation team based on the position level of the reported party. Protection of Whistleblowers

team

To further strengthen the integrity culture and protect

Investigation and * Anti-fraud personnel investigate and archive relevant materials from the reported department re- the legitimate interests of whistleblowers and investiga-quiring relevant personnel to provide explanations. Individuals refusing to cooperate will be held

reporting accountable. tors the Company has expanded the scope of protection

* Upon completion of the investigation the investigation team issues a report containing the accep- to include those involved in investigations. Additionally

a mechanism has been introduced to handle interfer-

tance date personnel composition verified facts conclusions and recommendations.ence with the work of investigators. Any individual who

* The Discipline Inspection Department verifies the investigation results and once confirmed the intentionally discloses the identity of a whistleblower

Accountability and case is handed over to the Human Resources Department for accountability processing and out- or who interferes with or retaliates against the whis-

corrective action come reports. tleblower or investigators will face disciplinary actions

* The involved department implements corrective measures and submits an internal control as- including dismissal or termination of the employment

sessment and improvement report to optimize processes.contract. If legal violations occur the case will be re-

* After the investigation is completed the Discipline Inspection Department shall notify the whis- ferred to the judicial authorities for processing ensuring

Feedback on results the protection of the rights and interests of the relevant

tleblower of the results within 5 working days after the investigation or decision is confirmed

individuals.through an appropriate method.

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Anti-Bribery Culture Development Integrity-themed Training in 2024

Theme Number of Sessions Participants

During the reporting period the Company fostered its integrity culture both online Integrity training session for engineering and R&D teams in March:

and offline. Online we efficiently operated the “Integrity at Autowell” WeChat “Progressing with Integrity”

1 Over 150

official account with 19 articles published in 2024. These articles covered topics Integrity training for graduate employees in July:such as reminders for integrity during holidays interpretation of corporate policies “The First Lesson on Integrity Setting a Good Start for New Employ- 1 100prevention of duty-related crimes promotions for Integrity Month and knowledge ees”

quizzes. These targeted communications provided clear guidance for employees

Public security-themed integrity training in July:

on key integrity issues. Offline we organized integrity training activities that effec- “Preventing Economic Crimes and Telecom Frauds” 2 Over 300

tively boosted employee participation in integrity initiatives creating a clean and

positive atmosphere and thus laying a solid foundation for our healthy efficient

Anti-fraud system promotion training in December:

and sustainable development. “Anti-fraud Promotion and Reporting Guidelines” 1 All employees

Training on Integrity Red Line Cases in December:

Integrity-themed activities “Lessons from Past Cases: A Compilation of Integrity Violations” 1 All employeesThe “520 I Love Police-enterpriseIntegrity” themed collaborative

event in May Due to our outstanding performance in pro-themed trainingevent in July moting integrity we were awarded the “In-tegrity Vitality Award” in the 2024 Annual

Integrity Themed Month Evaluation by the

China Enterprise Anti-Fraud Alliance. This“The First Cup of “Practicing Integrity honor has not only recognized our past ef-Integrity Coffee in Together” Integrity forts but also motivated us to continuouslyAutumn” themed Month themed event in

event in August December promoting integrity in the future.

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Anti-Unfair Competition

At Autowell we strictly adhere to laws and regulations such as the Anti-Unfair Competition Law and the Interim Provisions on the Prohibition of Commercial Bribery . We maintain a

“zero-tolerance” stance towards any form of commercial bribery and consistently uphold business ethics participating in market competition in a fair and transparent manner.During the reporting period we did not have any incidents of non-compliance related to unfair competition. Moving forward we will continue to uphold the baseline of fair competi-

tion and contribute to creating a healthy and orderly market environment.Amount involved in lawsuits or major administrative Number of pending or completed legal cases regarding

penalties due to unfair competition during the report- 0 unfair competition where we have been determined to 0

ing period be a participant

104 105Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Appendix I: ESG Data Table

Environmental Performance Environmental Performance

Indicator Unit 2023 2024 Indicator Unit 2023 2024

Total GHG Emissions tCO 3967 1 2621.255，6 Total direct energy con-2e Tons of standard coal 251.29 188.23

sumption

Scope 1 GHG Emissions tCO2e 606.76

2 375.85 Total indirect energy con- Tons of standard coal 724.43 514.28

sumption

Tons of standard coal per

Scope 2 GHG Emissions tCO 32e 3360.38 2245.40 Energy intensity per 10000 10000 yuan of output 0.0015 0.0008

yuan of output value

value

tCO2e per RMB 10000 rev-Carbon emission Intensity 0.0064 0.0028 Renewable energy con-

enue MWh —— 1660.94

sumption

Environmental protection

RMB10000 7.36 623. 827 Total water consumption 2

investment Cubic meters 72697 83191

including:

Purchased electricity 10000 kWh 589.45 418.458

Municipal water supply Cubic meters 72697 83191

Total Fuel Consumption Tons 132.83 —— Water consumption per Cubic meters per 10000

——0.0904

10000 yuan revenue yuan

Total gasoline consump-

Tons —— 78.29 Paper consumption per

tion Sheets 648.39 618.29

capita

Note: Items 1 2 3 and 4: The 2023 greenhouse gas emission data have been adjusted according to the "2023 GHG Verification Statement" pub-

Total diesel consumption Tons —— 13.63 lished by the Company on April 8 2024.Note 5: GHG emissions are calculated based on the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Enterprises in

Other Industrial Sectors (Trial) issued by the National Development and Reform Commission (NDRC). The electricity emission factor for pur-

Total natural gas consump-

KNm3 46.26 43.60 chased electricity is derived from the Announcement on the 2022 Electricity Carbon Emission Factor published by the Ministry of Ecology and

tion Environment in December 2024.Note 6: The Company conducts an annual GHG veriverificationfication everyin May with all official data to be derived from the final verification

Total comprehensive ener- report..with final data subject to verification reports.Tons of standard coal 975.72 702.51 Note 7:This year's environmental protection investment includes expenditures on PV rooftop systems.gy consumption Note 8: Purchased electricity figures exclude self-consumed PV power generation.Note 9: The total water consumption increased compared to the previous year due to the commissioning of the Phase II factory.

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Employee Performance Employee Performance

Indicator Unit 2023 2024 Indicator Unit 2023 2024

Total number of employ- Mid-Level management train-

/48324101/5124.5

ees ing hours

Proportion of mid-level man-

Number of male employ- % 80 86

/ 4271 3550 agement trained

ees

Number of female employ- Client satisfaction % 95.4 100

/561551

ees

Overseas client satisfaction % —— 100

Proportion of female man-

%19.3721

agers

Domestic client satisfaction % —— 100

Social insurance coverage

%100100

rate

Client complaint resolution

%——100

rate

Total safety training ses-

/78137

sions Client complaint response

%——100

rate

Safety training coverage

%100100

rate

Number of recalled products / 0 0

Safety hazard rectification

%100100

rate Number of complaints on / 0 0

products and services

Total employee training

RMB 13269000 971800

expenditure Major product and service / 0 0

safety or quality incidents

Total employee training

/5500019832

hours Product pass rate % 97.55 99.05

New employee training

/4120

hours R&D Investment RMB 10000 32730.77 43036.09

Proportion of new employ-

% 100 100 R&D Personnel / 875 1065

ees trained

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Employee Performance Governance performance

Indicator Unit 2023 2024 Indicator Unit 2023 2024

Number of invention pat-

/32149

ents granted Total anti-bribery and

anti-corruption training / —— 25

hours

Number of utility model

/271170

patents granted

Number of design patents

/ 1 3 Number of employees

granted participating in anti-cor- person-times —— 4154

ruption training

Number of software copy-

/2423

rights granted

Number of patents granted

/ 358 385 Integrity-themed training

during the reporting period / —— 6sessions

Total number of standard

/236153

parts suppliers Amount involved in law-

suits or major administra-

Responsible (Green)

tive penalties due to unfair RMB 0 0

procurement amount of RMB 10000 —— 215.417

competition during the

standard parts

reporting period

Total ESG training hours

/——5

for suppliers Number of pending or

completed legal cases re-

garding unfair competition RMB 0 0

Number of ESG training

/ —— 130 where we have been deter-

supplier participants

mined to be a participant

Total social welfare invest-

RMB 10000 102.52 189.83

ment

Tax payments RMB hundred million 6.40 7.50

Total employee volunteer-

/——250

ing hours

108 109Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Appendix II: Benchmarking Index Table

Guidelines No. 14 of Shanghai Stock Guidelines No. 14 of Shanghai Stock

Table of Contents Exchange for Self-Regulation of Listed Com- GRI Standards Table of Contents Exchange for Self-Regulation of Listed GRI Standards

panies—Sustainability Report (Trial) Companies—Sustainability Report (Trial)

Message from Autowell / G2-1 Conclusion of Materiality Assess-

Article 5 G3-1、G3-2、G3-3

ment

About Autowell

Sustainable Development Governance Arrangements

Company Profile / G2-1 Sustainable Development Gover-

Article 11 12 G2-22

nance Structure

Our Culture / G2-1 Sustainable Development-Relat-

Article 12 G2-22

ed Information Reporting

Sustainable Development Over-

Our Business Article 5 G2-1

sight and Assessment Mecha- Article 12 G2-22

nism

Our History / G2-1

Environment

Milestones in 2024 / G2-1

G201-2、G305-1、G305-2、

Climate Change Response Article 20 21 22 23 24 26 27 34 G305-3、G305-4、G305-5、

Our Responsibilities and

/ G2-1 G305-6、G305-7

Honors

Environmental Compliance

Materiality Assessment Article 29 33 /

Management

Discharge of Wastewater Waste G306-1、G306--2、G306-3、

Double Materiality Analysis Article 5 14 15 16 17 18 G3-1、G3-2、G3-3 Article 31

Gases and Solid Waste G306-4、G306-5、

G302-1、G302-2、G302-3、

Stakeholder Communication Article 53 G2-29 Energy Utilization Article 34 35

G302-4、G302-5

108 109Notes on the Report About Autowell Materiality Assessment Sustainable Development Governance Arrangements Environment Society Governance ESG Data Table Benchmarking Index Table

Guidelines No. 14 of Shanghai Stock Guidelines No. 14 of Shanghai Stock

Table of Contents Exchange for Self-Regulation of Listed GRI Standards Table of Contents Exchange for Self-Regulation of Listed Companies—Sustainability Report Companies—Sustainability Report GRI Standards

(Trial) (Trial)

Water Resource Utiliza- G303-1、G303-2、G303-3、G303-4、

Article 34 36 Social Contributions Article 40 G415-1

tion G303-5

Circular Economy Article 37 G301-1、G301-2、G301-3 Governance

G2-9、G2-10、G2-11、G2-12、

Green Operations Article 20 28 34 /

G2-13、G2-14、G2-15、G2-16、

Corporate Governance Article 212 51

G2-17、G2-18、G2-19、G2-20、

G101-1、G101-2、G101-4、G101-5、

Biodiversity Conservation Article 32 G101-6、G101-7、G101-8、G304-1、 G2-21、G2-27

G304-2、G304-3、G304-4

Internal Control and Risk

Article 52 /

Management

Society

Compliant Operations G207-1、G207-2、G207-3、

Article 54

Safeguarding Employee G401-2、G401-3、G404-1、G405-1、

Article 49 50 and Tax Management G207-4

Rights and Interests G406-1

Occupational Health and Anti-commercial Bribery Article 55 G205-1、G205-2、G205-3

Article 49 50 G403

Safety

G416-1、G416-2、G417-1、G417-2、 Anti-Unfair Competition Article 56 G206-1

Products and Services Article 45 47 48

G417-3

Innovation-Driven Devel- Appendices

Article 41 42 /

opment

G204-1、G308-1、G308-2、G409-1、 ESG Data Table Article 6 /

Win-win Cooperation Article 44 45

G414-1、G407-1、G408-1、G409-1

Benchmarking Index

Rural Vitalization Article 39 / Article 57 /Table

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