孚能科技:孚能科技2025年度环境、社会和公司治理（ESG）报告（英文版）

Farasis Energy (Ganzhou) Co. Ltd. 2025

Address: West Side of Caidie Road North Side of West Jinling Road Ganzhou Environmental Social and Governance

Economic and Technological Development Zone Jiangxi Province

Postal Code: 341000 (ESG) Report

Corporate Switchboard: 0797-7329999

Investor Hotline: 0797-7329849

Farasis Energy (Ganzhou) Co. Ltd.E-mail: farasislR@farasisenergy.com.cn sustainability@farasisenergy.com.cnCommitted to providing

leading clean energy products and services for the world

promoting the sustainable development of human society

and empowering a better life for humanity.Integrity-Based Green Win-Win Innovation and

Operation Development Cooperation Transformation

Party-Building Leadership 27 Addressing Climate Change 41 Customer Relationship Management 55 Research and Development Innovation 75

Standardized Governance 27 Environmental Compliance 45 Employee Relationship Management 57 Product Quality and Safety 78

Prudent Operation 30 Pollutant Emission and Waste Treatment 46 Community Relationship Management 65 Intelligent Manufacturing and Lean

Management 81

Risk Management 34 Resource Utilization 50 Industrial Ecology Synergy 66

Product Compliance and Circular

Data Security and Privacy Protection 35 Ecosystem and Biodiversity Conservation 52

Economy 83

01/About this Report 05/About Farasis Energy

CONTENTS 03/Message from the Leadership 11/Sustainable Development Governance 85/Appendix2025 Environmental Social

About this Report Message from the Leadership About Farasis Energy Sustainable Development Governance Integrity-Based Operation Green Development Win-Win Cooperation Innovation and Transformation Appendix and Governance (ESG) Report

About this Report

This is the fourth Environmental Social and Governance (ESG) report released by Farasis Energy. Adhering to the principles of objectivity comprehensiveness Reporting Period

standardization and transparency this report presents the management philosophy management mechanisms and practical achievements of the Company

in environmental social and governance-related issues during the reporting period to all stakeholders.This report is an annual report covering the period from January 1 2025 to December 31 2025. To enhance the completeness of the report some content may

Explanation of Major Changes go beyond the above scope which will be indicated where applicable.In May 2025 the Company completed the re-election of the Board of Directors. The controlling shareholder of the Company was changed to Guangzhou

Industrial Investment Holding Group Co. Ltd. (GIIHG) and the actual controller of the Company was changed to the People’s Government of Guangzhou

Municipality. This change in control does not have a material impact on the daily operation of the Company. For more details please refer to the Conclusive Data Description

Announcement on the Completion of the Change of Controlling Shareholder and Actual Controller of Farasis Energy (Ganzhou) Co. Ltd. (Announcement No.:

2025-032).

The written information and quantitative data disclosed in this report are all derived from the original records or annual reports of the Company’s actual

operation. Unless otherwise specified the data disclosed in this report are consistent with the scope of the consolidated financial statements of Farasis

Energy (688567.SH).If the relevant financial data are inconsistent with those in the annual report the data in the annual report shall prevail. All financial data in this report are

Report Scope denominated in RMB.The scope of information disclosed in this report covers Farasis Energy (Ganzhou) Co. Ltd. ("Farasis Energy" "the Company" or "we") and its major production

bases (Ganzhou Base Ganzhou New Energy Base Zhenjiang Base Guangzhou Base). Reliability Statement

The Company confirms that this report does not contain any false records misleading statements or material omissions.Preparation References

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies of Shanghai Stock Exchange No. 14 – Sustainable Development Report (Trial) Access to the Report

Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies of Shanghai Stock Exchange Science and Technology Innovation Board No. 13 –

Preparation of Sustainable Development Report (Revised in January 2026) You may access or download the electronic version of this report through the Investor Relations section of the official website of Farasis Energy (Investor

Global Sustainability Standards Board (GSSB) Sustainability Reporting Standards (GRI Standards) Relations - Farasis Energy) or the website of the Shanghai Stock Exchange.International Financial Reporting Sustainability Disclosure Standard S1 – General Requirements for Sustainability-Related Financial Information Disclosure If you have any questions or comments on this report you may also contact us through the following channels:

(IFRS S1) Investor Relations: farasisIR@farasisenergy.com.cn

International Financial Reporting Sustainability Disclosure Standard S2 – Climate-Related Disclosure (IFRS S2) ESG/Sustainability: sustainability@farasisenergy.com.cn

Ministry of Finance Enterprise Sustainable Disclosure Standards – Basic Standards (Trial)

United Nations Sustainable Development Goals (SDGs)2025 Environmental Social

Message from the Leadership

Amid a profoundly evolving global landscape and the deep advancement of the energy revolution 2025 stands as a pivotal year for Farasis Energy (Ganzhou) markets contributing a reliable "Farasis Solution" to the global energy transition. Meanwhile we have systematically strengthened climate change risk

Co. Ltd. in forging ahead amid pressure and pursuing progress while maintaining stability. Confronted with complex international dynamics and management advancing green and low-carbon operations in an all-round way through clean energy adoption energy conservation and consumption

industry-wide challenges the Company has embraced vital strategic opportunities as Guangzhou Industrial Investment Holding Group Co. Ltd. has become reduction and resource recycling. Two of our subsidiaries have been awarded national-level green factories. Driven by both green technology and green

its controlling shareholder. The infusion of state-owned capital has furnished robust strategic support and resource safeguards for the Company’s long-term manufacturing we are continuously consolidating a solid foundation for sustainable development.development.We have pursued value co-creation building an upward and socially responsible ecosystem through collaborative cooperation. Over the past year we

Sustainable development has long been embedded in the corporate DNA of Farasis Energy. Over the past year we have driven the deeper integration of this have worked hand in hand with all partners to innovatively establish a sustainable supply chain management system translating ESG requirements into

principle into the Company’s corporate strategy and operations. For the first time we have elevated ESG to the level of board governance establishing an ESG evaluable and trackable performance indicators and systematically improving risk management and sustainable development capabilities across the entire

governance system with the Board of Directors and its special committees as the supreme decision-making body. We have also officially joined the United chain. For customers we have always adhered to the lifeline of product safety and quality continuously improved the service system and built an efficient

Nations Global Compact aligning with international standards and requirements. We have formulated strategies from a higher stance and advanced network covering more than 120 authorized service stations continuously creating value through reliable products and professional services. Meanwhile we

initiatives with practical actions to fulfill the expectations and requirements of all stakeholders translating our commitment to sustainable development into have actively fulfilled our corporate responsibilities integrated into rural revitalization and regional development and created greater and better comprehen-

tangible advantages that propel the Company’s high-quality development. sive value in broader fields. By building a responsible resilient and growth-oriented ecosystem we have effectively translated the ESG philosophy into a

sustainable driving force for development.We have pursued quality improvement and efficiency enhancement consolidating the foundation for steady and sound development through

operational excellence. Over the past year we have forged ahead under pressure. Internally we have continuously refined the corporate governance Only through reform can we advance; only through innovation can we become strong; only through reform and innovation can we prevail. 2026 marks

structure strengthened internal control compliance management and business ethics and enhanced risk resilience. We have systematically built the FOS the inaugural year of the 15th Five-Year Plan and a crucial starting point for the Company to enter a new stage of development. We will integrate the require-

Operational Excellence System comprehensively improving cost control and operational efficiency across key dimensions including organizational reform ments of sustainable development into every aspect of strategy operation and culture with higher standards and more practical measures. We will continu-

cost reduction and efficiency enhancement operational excellence and quality improvement. Adhering to the tiered and categorized talent development ously create new advantages for high-quality development through long-term robust and sustainable value creation and contribute "Farasis Wisdom" to

philosophy we have launched the "Xin Guang" "Xin Chen" "Xin Hui" and "Xin Yao" talent development programs cementing the talent foundation for the global power and energy storage battery solutions.Company’s long-term development. Externally we have deepened communication with investors enhanced the transparency and effectiveness of informa-

tion disclosure and earnestly protected the rights and interests of all shareholders. Through internal and external improvements and addressing both

symptoms and root causes we are systematically building a governance framework and resilience foundation that underpins the long-term success of the Xie Yong Chairman of the Board of Directors Farasis Energy (Ganzhou) Co. Ltd.enterprise.Dong Ligang President Farasis Energy (Ganzhou) Co. Ltd.We have seized opportunities and pursued innovation anchoring the direction of green and innovative development through long-termism. Over the

past year we have unwaveringly placed green innovation at the core of our strategy continuously increased R&D investment and proactively laid out the

energy storage business. In terms of technological breakthroughs the industry’s first SPS soft-pack module-free power battery solution has achieved mass

production. In terms of product portfolio ternary high-nickel medium-nickel lithium iron phosphate and sodium-ion batteries have been mass-produced

and delivered simultaneously. In terms of market expansion the SPS lithium iron phosphate battery system solution has been successfully scaled for overseas2025 Environmental Social

About Farasis Energy Business Segments

Farasis Energy (Stock Code: 688567.SH) was founded in 2009. As a global leader in pouch-type power batteries Farasis Energy was listed on the STAR Market

in 2020 becoming the first power battery company listed on the STAR Market.The founding team of Farasis Energy has been engaged in power battery research and development since 1997 founded Farasis Energy USA in Silicon Valley

in 2002 and established Farasis Energy in Ganzhou China in 2009 thus launching the industrialization and globalization of power batteries. The Company has

carried out in-depth cooperation with leading customers in the industry and established a leading market position. Meanwhile relying on its technological

advancement and excellent market performance Farasis Energy has obtained investment from state-owned capital and is now controlled by Guangzhou

Industrial Investment.As an industry pioneer Farasis Energy adheres to a global strategic layout commits to promoting transportation electrification and energy greening and

contributes to the sustainable development of energy and the human living environment.

1997200220092020

Engaged in power battery research Founded Farasis Energy USA Established Farasis Energy in Farasis Energy was listed on

and development in Silicon Valley Ganzhou China the STAR Market

Corporate Vision

Focusing on technological innovation leading

the energy revolution and powering a better

life for humanity.Corporate Mission

Providing clean energy and building an

intelligent world.Corporate Spirit

Innovation Entrepreneurship

Collaboration Win-Win

Passenger Vehicle Commercial Vehicle Energy Storage Electric Aircraft Emerging Marine

Business Business Business Business Business Business2025 Environmental Social

Global Industrial Layout

Stuttgart Germany

Silicon Valley USA Ganzhou Headquarters China

Gemlik Turkey Zhenjiang China

Ganzhou China (Dual Bases)

Guangzhou China

R&D Centers Production Bases Production & R&D Bases

China | Production Bases Silicon Valley USA Stuttgart Germany Gemlik Turkey

Ganzhou Jiangxi The Company conducts in-depth cooperation with North American strategic The Company carries out in-depth cooperation with European strategic The Siro base a joint venture between Farasis Energy and Togg has

Zhenjiang Jiangsu partners and provides supporting services. The site focuses on cutting-edge partners and provides supporting services. The site supports product been completed and put into operation. The base provides power

Guangzhou Guangdong technology research and development and reserves advanced technologies for and technology development for global complete vehicle manufactur- battery supporting services and energy storage solutions for Europe

next-generation power batteries. ers and guarantees the delivery of international projects. the Middle East and other regions.2025 Environmental Social

Corporate Honors

Leading Product Competitiveness

Maintained the domestic top Ranked among the global

installation volume of soft-pack top in the installation

power batteries for 9 consecutive volume of soft-pack power

years from 2017 to 2025 batteries for many years.Global Power Battery

Installation Volume

Professional and Authoritative Recognition

National Enterprise Technology Scientific and Technological Innovation

Center Demonstration Enterprise

National Technological Innovation National Green Factory

Demonstration Enterprise

National Intellectual Property National High-tech Enterprise

Advantage Enterprise

Intelligent Manufacturing Pilot Advanced Collective in the National

Demonstration Project Battery Industry of China Battery

Industry Association2025 Environmental Social

Sustainable Development Governance

ESG Management

Governance

Farasis Energy attaches great importance to ESG governance and has established a three-level governance structure: "Board of Directors and Its Special

Committees – ESG Management Committee – ESG Working Group". The Company has formulated and issued the Sustainable Development (ESG) Manage-

ment System. The Sustainable Development Department serves as the full-time management department for ESG affairs. ESG ratings and other indicators

are embedded as key assessment indicators in the annual performance appraisal of senior management and the Sustainable Development Department

which promotes all departments and production bases of the Company to integrate the ESG concept into daily production and operation and helps the

Company achieve its ESG objectives. The Company organized and held the 2026 The Company participated in and responded to the "2030

Special ESG Training Session Global Supply Chain Collaboration Initiative"

Strategy

The Board of Directors and its Special Committees serve as the supreme decision-making body for

Decision-Making Level ESG affairs of the Company. They are responsible for making decisions on major ESG-related matters The Company deeply embeds the concept of sustainable development into the core of its corporate culture and constructs a sustainable development

of the Company reviewing and approving the Company’s annual ESG report ESG-related risks with strategic framework led by the "EMPOWER" concept. The framework fully aligns with the 17 United Nations Sustainable Development Goals (SDGs) for 2030

Board of Directors and its significant impact on the Company and response plans for major ESG negative events and regularly and clarifies the value orientation for the long-term sustainable development of the Company.Special Committees listen to work reports from the ESG Management Committee.The ESG Management Committee serves as the management body for ESG affairs of the Company

which is chaired by the President. It is responsible for implementing ESG-related tasks assigned by

Management Level the Board of Directors and the Strategy Committee approving the ESG governance structure and

ESG Management important systems of the Company formulating ESG objectives and supervising the achievement of

Committee such objectives regularly listening to work reports from the ESG Working Group and providing

guidance in a timely manner.The ESG Working Group serves as the specific implementation department for ESG affairs of the

Implementation Level Company which is led and established by the Sustainable Development Department. It is responsi-

ESG Working Group ble for coordinating and promoting the implementation of ESG-related matters organizing the

collection and submission of ESG information assisting in the preparation of ESG reports and

conducting ESG promotion and training.Capability building serves as an important support for Farasis Energy to promote ESG work. The Company makes full use of internal resources to organize

special ESG training sessions continuously deepens the cognition and understanding of ESG among middle and senior management employees and

promotes the in-depth integration of ESG concepts and requirements into all aspects of the Company’s production and operation. Meanwhile by joining the

United Nations Global Compact (UNGC) and participating in sustainable development-related industry associations forums and initiatives the Company

keeps abreast of the latest trends and requirements of sustainable development at home and abroad and provides a solid foundation for improving the

overall ESG performance of the Company.2025 Environmental Social

Management of Impacts Risks and Opportunities Product Quality and Safety

The Company attaches great importance to the management of risks and opportunities related to sustainable development and conducts analysis of Impact Scope Period Risks Opportunities Financial Impacts and Paths

impacts risks and opportunities for identified ESG topics of double materiality. Every year the Company regularly organizes in-depth interviews with leaders

and colleagues of key departments and critical positions discusses and studies the impact links timeframes impact degrees and development opportunities Any safety-related quality It may reduce sales revenue and market share Technical introduction and

of the topics and gradually constructs and improves the ESG risk management and control mechanism and workflow. As shown in the table below the flaws exposed by and may trigger brand impairment and optimization of battery

Company has adopted effective management measures for the impacts risks and opportunities of each topic which can be found in relevant chapters of the authorities or the media may increased marketing costs.pack SPS to improve

report. Medium-term undermine confidence It can reduce rework rates and after-sales manufacturing reliability

Upstream among existing and maintenance costs improve customer

and feasibility.Value Chain potential customers even if satisfaction and repurchase rates thereby

R&D and Innovation no major incident occurs. enhancing profitability.Enterprise

Operations

Impact Scope Period Risks Opportunities Financial Impacts and Paths It may trigger recall costs legal compensation As the first batch of vehicles Establish a reputation for

Downstream and brand reputation loss if large-scale aging or

enters the end of their life "safe and reliable" product

Value Chain safety hazards occur.Long-term cycle the full-life-cycle quality and safety. It will form a brand premium improve customer

safety design of products

The commercial transformation loyalty facilitate new market expansion and

It may lead to delayed project will be tested.and application of new high-end customer cooperation and bring

progress reduced R&D efficiency

technologies such as long-term stable cash flow.The risk of talent loss in increased human replacement costs

Short-term passenger vehicle SPS

R&D. and opportunity costs. If applied

two-wheeler iteration and

rapidly it may bring revenue growth Customer Relationship Management

upgrading and commercial

or market share improvement.vehicle semi-solid batteries.Impact Scope Period Risks Opportunities Financial Impacts and Paths

It will directly impact the stability of the

Short-term performance is Company’s revenue and capacity utilization

highly dependent on several

Upstream It may lead to increased rework costs

which may lead to a sharp decline in income and

top customers and Actively explore other major

customer complaints and higher an increase in unit fixed costs and squeeze Value Chain The commercial transformation The risk of mass Short-term fluctuations in sales volume customers by leveraging the

of forward-looking layout in return rates which will affect the

profit margins.Enterprise production consistency or adjustments to

Turkish factory to enter the

Medium-term the next-generation sodium gross profit margin. If mass

It can bring incremental revenue if new

in large-scale production plans of a single European market.Operations production is successful it will bring customers are successfully explored diversify batteries semi-solid batteries

production. model may impact revenue the risk of customer concentration and enhance

Downstream and all-solid batteries.new revenue sources and improve

and capacity utilization.profitability. anti-cyclical capabilities.Value Chain

Enterprise Any delivery delay or failure

It may lead to reduced orders increased

Operations to meet expected quantity

compensation expenses and even exclusion

The long-term due to capacity or yield Second-curve opportuni-

Downstream from the supplier list resulting in medium- and

strategic foundation of issues will directly trigger ties: energy storage (more

Value Chain long-term revenue pressure.the Company will be It may lead to sunk costs of early R&D Medium-term the risk of customer benign) and heavy-duty

It can open up new revenue sources if

shaken if the main investment reduced brand production line shutdown trucks (high density light

Large-scale shipment of successfully entering new tracks improve the

technical route competitiveness and asset and severely damage the weight long battery life).Long-term all-solid batteries with good diversification of profit structure and enhance

promoted by the impairment risks. It is expected to image of a "reliable

production line compatibility. risk resistance capabilities.Company proves to form technical barriers bring scale supplier".have no comprehensive effects and long-term profitability.advantages in the

Any delivery delay or failure

market. Focus on the continuous It may lead to a continuous decline in profit

to meet expected quantity

iteration of technology and margins and pressure on long-term profitability.due to capacity or yield It can maintain high bargaining power and

Long-term always maintain

issues may affect customer

differentiated competitive customer stickiness if remaining ahead and

Note: The Company defines the timeframe as follows: short-term (1 to 2 years inclusive) medium-term (3 to 5 years inclusive) and long-term (more than 5 production rhythm and

advantages. ensure long-term stable cash flow and industry

years). supply chain stability. status.2025 Environmental Social

Supply Chain Management Intelligent Manufacturing and Lean Management

Impact Scope Period Risks Opportunities Financial Impacts and Paths Impact Scope Period Risks Opportunities Financial Impacts and Paths

Lock in upstream raw material This may lead to an increase in system

costs through vertical It can stabilize procurement costs The Company faces the integration costs ineffective utilization of

Sharp fluctuations The Company enhances the

integration and enhance mitigate impacts from price challenge of data silos data and compromised decision-making

(increases) in the prices utilization efficiency of personnel

Short-term bargaining power through fluctuations safeguard profit caused by inconsistent efficiency and production collaboration which

of key raw materials at and resources and improves yield

centralized procurement to stability and potentially gain cost Short-term data interfaces among may result in implicit efficiency losses.the material end. rates through process monitoring

strengthen supply chain advantages through scale effects. automation equipment The Company directly reduces the unit and prevention of key parameters.resilience. supplied by different manufacturing cost decreases losses from

vendors. rework and waste products and improves the

gross profit margin.Management risks It may cause inventory overstock or A dedicated If the Company fails to make timely

arising from a shortage losses increase logistics

Enterprise

production line The Company extends lean adjustments this may lead to idle capacity and

significant increase in and coordination costs and reduce

Operations

designed for a specific management from the manufactur- depreciation pressure and affect the profit

Build a sustainable supply

Upstream supply chain complexity asset turnover efficiency. Downstream product may fail to ing workshop to the full value stream margin.chain to meet stricter review Medium-term

Value Chain Medium-term caused by diversified It will enable access to high-margin Value Chain meet the production from order receipt to product The Company reduces the occupation of requirements in overseas or

customers expanded markets obtain customer certifica- requirements of the delivery and reduces inventory and operating capital improves the inventory Enterprise high-end markets.product lines and tion premiums avoid compliance next-generation lead time. turnover rate and optimizes cash flow and Operations global multi-location risks and potential trade barriers and product. return on assets.Downstream capacity layout. improve revenue quality. The Company establishes a

Value Chain factory-level digital twin and uses

Digitalization of the The Company reduces energy costs losses

historical data and machine learning

entire process and all from equipment shutdowns and maintenance

The need to establish It may result in high initial investment models to conduct predictive

Leverage the inclusiveness of Long-term factors makes the expenses extends the service life of

local or regional supply and high running-in costs affecting optimization of process parameters

the pouch-cell form factor to factory a high-value equipment and improves long-term

chains for overseas overseas business profitability and so as to realize prediction of quality

interface stress and the target for cyberattacks. profitability.factory operations to capacity release. and energy consumption and

adaptability of lamination

comply with policy preventive maintenance.Long-term technology to multi-layer requirements involves It can reduce technology switching

stacking to achieve a smooth

the cultivation of a costs shorten capacity ramp-up

transition of manufacturing periods seize dividends from Goals and Progressbrand-new supplier

processes in the transforma-

system facing multiple next-generation technologies and

tion from liquid to solid-state In 2025 the Company officially joined the United Nations Global Compact (UNGC) fully aligned with the 17 United Nations Sustainable Development Goals for

challenges in achieve long-term revenue growth

batteries. 2030 and proactively reported its annual work progress. Meanwhile the Company actively participated in external ESG forums ESG award applications ESG

standards culture and and cost leadership. rating rankings and other stakeholder engagement activities. Guided by the latest domestic and international standards and industry requirements the

Company promoted internal management improvement and performance enhancement communicated its ESG philosophy and disseminated outstanding

practices with a more proactive attitude and enhanced the external influence of its ESG work.ESG Ratings ESG Awards

Wind ESG Rating: AA Selected in S&P Global Sustainability Yearbook (China Edition) 2025

Awarded "Excellent ESG Practical Case" by China Times

S&P Global CSA Score: 53

Won the "Model Enterprise for Supply Chain Sustainability Management" of the

Huazheng ESG Rating: AA 2025 China Corporate Social Responsibility Model by Yicai

Won the "Environmental Friendly (E) Pioneer Enterprise" of the 2025 Cailian

Agency Zhiyuan Award2025 Environmental Social

Actions Actions

No Poverty A total of 1339600 yuan was spent on rural revitalization initiatives helping 10 Actively participating in industry exchange activities to promote industrial Partnerships

people secure employment. Cash and materials with a total value of 221200 yuan development and technological progress. for the Goals

were donated throughout the year.Environmental social governance and mineral supply chain due diligence require- Peace Justice

ments were included in the Supplier Code of Conduct and supplier cooperation and Strong

contract terms clearly requiring suppliers to provide compliant risk-free and Institutions

Good Health All major certified production bases have obtained ISO 45001 Occupational Health

traceable mineral sources.and and Safety Management System certification with 100% coverage of occupational

Well-being health examinations for employees.Quality In 2025 the Company held 318 training sessions covering 30601 participants

No incidents with significant impacts on biodiversity were found in 2025. Life on Land

Education launched 247 online courses and certified 187 internal trainers.The Company conducts annual greenhouse gas inventories for Scope 1 Scope 2 Climate

and Scope 3. In 2025 2 production bases successfully passed ISO 14064 carbon Action

Gender The Company formulated and issued the Board Diversity Policy. One new female verification certification among which the Ganzhou Base successfully passed

Equality director was added accounting for 14.29% of directors in 2025 and the proportion ISO 14068 carbon-neutral factory certification.of female managers was 15.69% an increase of 5% from the previous year.In 2025 the utilization rate of recyclable packaging reached 65.33%. Responsible

Consumption

Clean Water All operational sites of the Company are supplied with municipal tap water. The

and Production

and total water consumption in 2025 was1864000 tons with a water consumption

Sanitation intensity of 204.46 per million yuan of revenue.During the reporting period the compliance rate of waste gas wastewater and Sustainable

Affordable The consumption of renewable energy in 2025 was14463.03 tons of standard coal waste disposal reached 100%. Cities and

and Clean equivalent. The Company has two national-level green factories among which the Communities

Energy Ganzhou Base has successfully passed the ISO 14068 carbon-neutral factory

certification.Adhering to the principle of "fairness and impartiality" all discrimination based on Reduced

race color religious belief gender age place of origin etc. is prohibited. Inequalities

Decent Work The Company formulated and issued Human Rights and Diversity Policies commit-

and Economic ting to respecting and protecting the human rights and labor rights of all employ-

In 2025 R&D investment was 631.12million yuan accounting for 6.92% of operating Industry

Growth ees suppliers customers and other stakeholders.revenue; the number of R&D personnel was 1203 and 128 invention patents were Innovation and

In 2025 3066 new employees were recruited. applied to main businesses. Infrastructure2025 Environmental Social

Stakeholder Communication

Farasis Energy (Ganzhou) Co. Ltd. maintains standardized and systematic communication processes for all stakeholders. The Company fully understands and

actively responds to the expectations and demands of each stakeholder group to continuously improve its operational management capabilities and sustain-

able development capabilities.Government &

Stakeholder Shareholders & Investors Regulatory Agencies Management Employees Customers Partners Community Partners

Investors Superior governments and Members of the Board of Ordinary employees Domestic and foreign customers Suppliers Surrounding communities of the

competent authorities Directors bases

Potential Investors Contractors

Shanghai Stock Exchange Senior Management Universities and research

Partners institutions

China Securities Regulatory Department Heads

Commission

Stakeholder ESG rating agencies

Representatives Media

Industry associations etc.Business operations and Law abiding and compliant Strategy execution and market Competitive salary and welfare Product quality and delivery Technical strength and Sustainable community

fundamentals operations competitiveness capacity cooperation stability development

Comprehensive training system

Strategic development direction Climate change response and Efficient corporate governance Information security and privacy Fair just open and transparent Sharing of corporate develop-

carbon neutrality structure Open and transparent protection procurement environment ment achievements

Financial performance and development channels

market prospects Contributions to local economic Profitability of the Company Green and low carbon products Technical empowerment and Reduction of environmental

Stakeholder Concerns and industrial development Workplace health and safety industrial development impacts

Corporate governance and risk Energy density and safety of

management capabilities batteries Market and sales support

Regular information disclosure Regular information disclosure Regular work reports Party branches Pre sales communication Supplier training Face to face communication

General Meetings of Sharehold- Participation in relevant Management meetings Labor Union After sales service On site audits and Public welfare activities

ers meetings communication

Special training Farasis Energy Community Routine communication (e.g. Complaint hotline

Investor roadshows and Communication through Employee Exchange Platform customer visits) Project cooperation

exchange conferences industry associations and other Email Media conferences

institutions Email Third party training Regular visits

Communication telephone and Enterprise WeChat Regular communication and

email Enterprise WeChat Customer audits feedback

Communication &

Engagement Methods Factory site visits Employee suggestion box Project cooperation

Performance presentations "Farasis Home" Official Account Official website of Farasis

Energy official accounts and

Investor relationship manage- other public channels

ment activities via new media2025 Environmental Social

Identification of Material Topics List of Topics

In accordance with the Self-Regulatory Guidance for Listed Companies on the Shanghai Stock Exchange No.14 – Sustainability Reporting (for Trial Implemen- During the process of identifying material topics for 2025 Farasis Energy (Ganzhou) Co. Ltd. has fully considered the following five major factors and

tation) Farasis Energy (Ganzhou) Co. Ltd. takes 21 topics as the benchmark and conducts an in-depth analysis of its business structure and operation model. has identified and selected 25 topics in combination with the actual operation of the Company as well as analyzed the impacts risks and opportuni-

The Company carries out research and analysis on stakeholders through questionnaires executive interviews departmental investigations and other ties of each topic.methods. It fully considers the demands and expectations of all stakeholders and systematically identifies material topics that are closely related to the

business operations of the enterprise and that occupy a prominent position in the stakeholder concern matrix.Dimension Analytical Approach

Corporate The Company has sorted out ESG topics that are highly relevant to its core competitiveness and future development

Dimension Definition Materiality Analysis Criteria Development direction with the development mission of "Providing Clean Energy and Building an Intelligent World" and the strategic

Strategy goal of striving to become a global leader in power battery technology.Whether the performance of the Company on the corresponding

Significance of * Likelihood of impact occurrence

topic has actual or potential significant impacts on the economy

Impact * Scale scope and irreparability of impacts Macroeconomic The Company extracts ESG topics that are binding or guiding to various business segments in combination with relevant society and the environment.Policies national and local laws regulations and policy documents to ensure that topic setting complies with policy orientations.Whether the topic is expected to have significant impacts on the

Financial Company’s business model business operations development * Likelihood of impact occurrence Stakeholder The Company defines ESG topics that require key responses by identifying major stakeholder groups and combining their

Materiality strategies financial position operating results cash flow financing Identification and * Degree of financial impact key concerns and communication methods to improve the responsiveness and pertinence of topic responses.methods and costs in the short medium and long term. Response

Rating and

The Company refers to mainstream ESG rating and disclosure standards such as MSCI SASB and Shanghai Stock

Information

Exchange to ensure that topic selection has international vision and industry applicability.Farasis Energy Dual Materiality Analysis Process Disclosure Guidelines

Peer Benchmarking The Company ensures that topic setting has industry comparability and forward-looking by benchmarking the disclosure

Background Identification and Understanding Analysis priorities of peers in the industry on ESG topics.Fully understand the sustainable development background of the Company through the analysis of macroeconomic policies and regulatory

requirements;

Identify key stakeholders affected. Farasis Energy 2025 ESG Topic Library

Establishment of Topic List

Conduct preliminary identification screening and definition of relevant sustainable development topics based on standard benchmarking

peer benchmarking and policy analysis;

Analyze the actual and potential impacts risks and opportunities involved in material topics.Topic Materiality Assessment and Confirmation Environmental (8 topics) Social (9 topics) Governance (8 topics)

Significance of Impact Assessment (score: 0-5) Climate Change Response Employees Due Diligence

Conduct stakeholder communication through questionnaire surveys and refer to the opinions of internal and external experts to determine Environmental Compliance Management Rural Revitalization Stakeholder Communication

topics with significant impacts.Financial Materiality Assessment (score: 0-5) Pollutant Emission and Waste Treatment

Social Welfare Sustainable Development Governance

Supply Chain Security Data Security and Privacy Protection

Conduct communication with the Company’s executives and financial-related personnel through questionnaire surveys and interviews and Energy Utilization

refer to the opinions of internal and external experts to determine financially material topics. Water Resource Utilization Industrial Cooperation and Industry Anti-Commercial Bribery and Anti-Corrup-

Development tion

Ecosystem and Biodiversity Conservation

R&D and Innovation Compliance Operation and Risk Manage-

Topic Reporting Circular Economy

ment

Intelligent Manufacturing and Lean

Full-Lifecycle Green Solutions Management Party-Building Leadership

Integrate the questionnaire analysis results of topic materiality and expert scoring opinions to form a dual materiality topic matrix; after Product Quality and Safety Anti-Monopoly and Fair Competition

review and confirmation by the Company’s management the dual materiality topics of 2025 will be the key disclosure items of this report. Customer Relationship Management2025 Environmental Social

Assessment of Materiality of Impacts

The Company assesses the materiality of impacts of sustainable development-related topics from two aspects: the likelihood and severity of impacts.The Table Note: Topics of Financial Materiality

likelihood of impacts is assessed from three dimensions: the scale scope and irreparability of impacts.The questionnaire survey has collected feedback from stakeholders including employees shareholders and investors senior management of the Company

suppliers and other commercial partners customers communities and the media.Based on the questionnaire results the Company has identified the key

concerns of different stakeholders ranked the materiality degree of the 25 topics to Farasis Energy in combination with expert judgments and derived the list

of material topics based on the set threshold of materiality of impacts. Climate Change Response R&D and Innovation Data Security and Privacy

Protection

Energy Utilization Product Quality and Safety

Customer Relationship

Table Note: Topics of Material Impact Management

Supply Chain Security

Intelligent Manufacturing

and Lean Management

Climate Change Response R&D and Innovation Party-Building Leadership

Energy Utilization Product Quality and Safety Anti-Commercial Bribery and

Anti-Corruption

Full-Lifecycle Green Solutions Supply Chain Security

Compliance Operation and Risk Assessment Results of Topic Materiality

Management

Circular Economy Customer Relationship

Management The Company comprehensively summarizes the impacts risks and opportunities of material topics and discloses relevant management actions and

Data Security and Privacy effectiveness in the report. For financially material topics the Company focuses on disclosure in accordance with the four-element framework of

Environmental Compliance Protection

Management Employees Governance Strategy Impact Risk and Opportunity Management and Indicators and Targets.Sustainable Development

Pollutant Emission and Waste Intelligent Manufacturing and Governance

Treatment Lean Management

Environmental Compliance Management Pollutant

Due Diligence Emission and Waste Treatment Water Resource

Water Resource Utilization Industrial Cooperation and

Industry Development Utilization Circular Economy Full-Lifecycle Green

Stakeholder Communication Climate Change ResponseSolutions

Ecosystem and Biodiversity R&D and Innovation

Conservation Rural Revitalization Employees Industrial Cooperation and Industry

Anti-Monopoly and Fair Product Quality and Safety

Competition Development Supply Chain Security

Social Welfare Anti-Commercial Bribery and Anti-Corruption Customer Relationship Management

Compliance Operation and Risk Management

Stakeholder Communication Due Diligence Party-Build-

ing Leadership

Assessment of Financial Materiality

The Company assesses the financial materiality of sustainable development-related topics from the perspectives of the likelihood of occurrence and the

degree of financial impact over three time horizons: short-term (within 1 to 2 years inclusive) medium-term (3 to 5 years inclusive) and long-term (more than

5 years). Ecosystem and Biodiversity Conservation Rural

Intelligent Manufacturing and Lean Management

In the specific analysis process the Company sets judgment criteria for the degree of financial impact based on historical pre-tax profits analyzes the Revitalization Social Welfare Sustainable

Energy Utilization

likelihood of occurrence and the degree of impact on financial expectations of risks and opportunities associated with each topic in the short medium and Development Governance Anti-Monopoly and Fair

Data Security and Privacy Protection

long term and ranks the financial materiality of the 25 topics by referring to expert opinions. The list of financially material topics is derived based on the set Competition

financial materiality threshold.Financial Materiality

Impact MaterialityIntegri-

ty-Based

Party-Building Leadership

Standardized Governance

Prudent Operation

Risk Management

Data Security and Privacy

Protection2025 Environmental Social

Party-Building Leadership Audit Committee

the Shareholders’ Meeting the Board of Directors and the

Management and formulated systems including the Rules of

Party Organization Development Procedure for the Shareholders’ Meeting and the Rules of Procedure for the Board of Directors. The systems clearly define

Shareholders’ Meeting

the boundaries of rights and responsibilities between the Strategy Committee

The Party Branch of Farasis Energy (Ganzhou) Co. Ltd. was established in 2011 and was upgraded to a Party Committee in June 2023. The Party Committee has Shareholders’ Meeting the Board of Directors and the Manage-

five subordinate Party Branches and one General Party Branch (which has three subordinate Party Branches) and is equipped with relevant institutions ment and establish a fair and scientific decision-making mecha-

including the Labor Union the Communist Youth League Committee the Women’s Committee and the Care for the Next Generation Work Committee. The nism. Except for the Strategy Committee all special committees

Party Committee of the Company has strengthened the three-level Party-building organizational structure of "Party Committee + General Party Branch + of the Board of Directors are composed of a majority of indepen- Board of Directors Nomination Committee

Party Branch" and implemented the "two-way entry and cross appointment" between the leading bodies of the Party organizations and the operation and dent directors who serve as conveners which effectively ensures

management leading bodies. In 2025 the Party Committee of the Company has seven Party Committee members and the Company has a total of 113 Party the professionalism and independence of the operation of the

members (including two probationary Party members) with a total of 18 active applicants for Party membership reserved. Board of Directors.Remuneration and

Evaluation Committee

"Four Must Talks and The hotline "Contact the Party Organization for Issues" has been launched and more than 30

Five Must Visits" suggestions and opinions have been received with 100% closed-loop implementation. During the reporting period the Company:

Held meetings of the Board of

Infrastructure The Labor Union of Farasis Energy has taken the lead in building a staff home and a staff book house Directors A 100% attendance rate of Board members;

Construction for employees.Held special meetings of

independent directors

Held meetings of the Audit Independent directors accounting for 2/3 of the

Committee Audit Committee;

General CPC Branch CPC Branches CPC Committee Members CPC Members

Held meetings of the Nomination Independent directors accounting for 2/3 of the

Committee Nomination Committee

Held meeting of the Remuneration Independent directors accounting for 2/3 of the

and Evaluation Committee Remuneration and Evaluation Committee.Party-Building Integration Activities

Board Diversity

The CPC Committee of the Company has built a Party member activity room in accordance with the "six haves" standard and set up 38 "Party Member Pioneer The Company attaches importance to the diversity construction of the Board of Directors. The members of the Board of Directors have profound professional

Posts" and 6 "Party Member Responsibility Zones" in the production workshops. A total of 125 key tackle projects have been promoted throughout the year knowledge and management experience in the industry and the diversity characteristics include but are not limited to gender ethnicity nationality cultural

helping the enterprise save more than 75 million yuan in costs. In addition the Party Committee of the Company has set up a "Provincial Party Representative and educational background professional experience skills age etc. In 2025 the Company issued the Board Diversity Policy which incorporates diversity

Studio" which is rooted in the research of lithium-ion batteries completed the development of 48 types of cell materials provided technical solutions for 25 (including industry experience and background such as climate change response risk management and sustainable development management) into the

product projects and achieved an 8-12% reduction in material costs. Fifteen invention patents for technologies have been awarded. At the same time three appointment considerations. The policy ensures that diverse visions and viewpoints are brought to senior management decision-making and guarantees the

Party member technical tackle groups for cell research and development pack research and development and special improvement have been established to scientificity and preciseness of decision-making through a reasonable composition of Board members.continuously promote the production and development of the enterprise.Female

Standardized Governance Person Bachelor’s Degree Doctoral Degree

Person Person

Improved Governance System

Master’s Degree Bachelor’s Degree

Male Female Person Master’s Degree

Farasis Energy (Ganzhou) Co. Ltd. strictly abides by the laws and regulations including the Company Law of the People’s Republic of China the Securities Law

Person Male Doctoral Degree

of the People’s Republic of China the Guidelines for the Governance of Listed Companies and the Rules for the Listing of Stocks on the Science and Technolo-

gy Innovation Board of the Shanghai Stock Exchange. The Company has established a clear-cut and mutually restrictive governance structure composed of

Board Composition2025 Environmental Social

Board Effectiveness Minority Shareholder Rights Protection

To ensure the effectiveness of the Board of Directors the Company has established a board performance evaluation mechanism and formulated the In 2025 the Company held 5 general meetings of shareholders. The Company fully protects

Remuneration Management System for Directors and Senior Management. The Remuneration and Assessment Committee formulates remuneration plans or the legitimate rights and interests of shareholders especially minority shareholders and

schemes for directors and senior management and conducts annual performance evaluations of the Board members and senior management of the Compa- has formulated and issued the Related Party Transaction Management System to ensure

Shareholders’

ny. The results of performance evaluations serve as an important basis for the remuneration and other incentives of senior management. that transactions are priced fairly reviewed in compliance and disclosed in a standardized Meeting

manner so as to prevent related party transactions from harming the interests of the

In 2025 the Company revised the Independent Directors Working System which clearly stipulates the qualification requirements and independence criteria

Company and shareholders. Meanwhile the Board of Directors fully listens to the opinions

for independent directors. The system requires independent directors to conduct annual self-evaluation of their independence. The Board of Directors

and suggestions put forward by independent directors on behalf of minority shareholders

evaluates the serving independent directors annually and issues a special opinion which is disclosed together with the annual report.in the decision-making process and no decision that harms the interests of minority

shareholders has been made.Investor Rights Protection Prudent Operation

The Company has formulated and implemented the Investor Relations Management System and the Information Disclosure Management System in strict

accordance with the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China the Guidelines for Investor Relations

Management of Listed Companies and other laws and regulations. The Company protects investors’ right to know and participate in major corporate matters

and safeguards the interests of minority investors. Corporate Compliance Management

Farasis Energy (Ganzhou) Co. Ltd. has formulated and issued a series of internal systems including the Compliance Guidelines of Farasis Energy. These

Compliance Information Disclosure systems have defined the concepts of corrupt practices fraudulent practices collusive practices coercive practices obstructive practices and sexual harass-ment practices. They have also specified detailed compliance conduct guidelines in the aspects of upholding integrity and compliance maintaining fair

competition preventing corruption and bribery prohibiting insider trading avoiding conflicts of interest safeguarding commercial secrets product control

The Company safeguards shareholders’ right to know and fulfills its information disclosure obligations in accordance with the law ensuring that information and quality safety.disclosure is true accurate complete and timely. Through holding performance briefings participating in investor exchange meetings receiving investor

visits and utilizing multiple channels such as the Shanghai Stock Exchange Interactive Platform investor hotlines and email addresses the Company The Company conducts investigations on major compliance risks every year and promptly identifies external risk early warning signals. Compliance risk

maintains efficient communication with investors concerned about the Company’s development and continuously improves the transparency of information identification is mainly derived from internal compliance evaluations employee consultation feedback and external customer requirements. In the initial stage

disclosure. In 2025 the Company held 7 public online investor exchange meetings and responded to 312 investor inquiries via the Shanghai Stock Exchange of compliance evaluation the compliance liaison persons for each special item are responsible for collecting and sorting out the laws regulations and

Interactive Platform. standards related to each special item identifying the compliance obligations related to the Company and preparing the List of Legal and Regulatory Obliga-

tions and Other Requirements accordingly. In accordance with the provisions of the Management Procedures for Compliance Obligations and Compliance

Evaluation the Company organizes relevant departments to conduct comprehensive compliance evaluations related to EHS labor and employment informa-

tion security intellectual property rights and energy management every year. The joint responsible departments jointly identify the relevant legal and

regulatory obligations and the responsible departments conduct continuous rectification for the items to be improved. In addition the Company actively

Investor Communication issues the latest laws regulations standards and policies issued by state organs through the Compliciency Lecture - New Regulation Express on the OA

Channels system popularizes compliance knowledge to all employees and customizes training content according to different responsibilities. The Company has also

established a legal and compliance resource database and conducted in-depth sharing of legal and compliance knowledge.Official website of the

Company

Shanghai Stock Exchange

Interactive Platform

Investor hotline

Investor email address

Investor research activities

Performance briefings

Periodic reports

Roadshows and reverse

Farasis Energy 2025 Semi-Annual Collective Investor Meeting roadshows.2025 Environmental Social

Tax Payment in Accordance with the Law Whistleblower Protection

The Company has established diverse independent and unimpeded reporting channels to accept complaints or reports of suspected violations violations of

To ensure the accuracy of tax declaration the timeliness of tax payment and the compliance of

laws and crimes from employees partners (customers suppliers) and the public around the clock. These channels are disclosed to internal and external

policy application the Company has established a tax asset sharing center to coordinate and

During the reporting period stakeholders through various means such as the Company’s official website and special training. Meanwhile the Company has set up a special reward fund to

manage the tax affairs of the Company and its affiliated (parent subsidiary and sub-subsidi-

reward whistleblowers whose reports are verified to be true and help recover direct losses of the Company. Priority and preferential treatment are provided to

ary) companies at all levels. The Company has formulated internal tax control and manage- The Company’s tax payment partners who take the initiative to report violations.ment systems including the Tax Management System the Detailed Rules for the Implementa- credit rating was Grade

tion of Related Transaction Management and the Invoice and Receipt Management System.Through continuous tax training the Company ensures that the team keeps abreast of the

latest tax policies regularly evaluates the performance of the requirements of national tax laws Reporting Address

and regulations internal tax management systems and other requirements involved in the

Company’s daily business activities proactively identifies and manages tax risks promptly Audit and Supervision Department West Side of 5th Floor Administrative Building Jinling West Road Ganzhou Economic and Technological

Development Zone Jiangxi Province

rectifies existing problems optimizes tax compliance processes and reduces tax risks. No major tax violation cases occurred within the

The Company fulfills its tax payment obligations and truthfully pays taxes in accordance with Company in 2025.the laws and tax provisions of various countries. It contributes to local development and social

Reporting Hotline

benefits through compliant tax payment. In 2025 no major tax violation cases occurred in the

Company.

0797-7329850 (24/7 independent hotline)

Anti-Monopoly and Fair Competition Reporting Email

fnlianjie@farasisenergy.com.cn

The Company has revised and improved the Compliance Management Measures for Anti-Monopoly and Anti-Unfair Competition added anti-unfair competi-

tion contents and provided risk prompts for various typical unfair competition acts in commercial activities to enhance the risk prevention effectiveness for

the front-line business. During the reporting period no relevant lawsuits or administrative penalties occurred in the Company.Written Reporting

Report boxes for discipline inspection and supervision at each base

Anti-Commercial Bribery and Anti-Corruption Ganzhou Base: Entrance and inside the factory area of Farasis Energy (Ganzhou) Co. Ltd. Jinling West Road Ganzhou Economic and Techno-logical Development Zone Ganzhou City Jiangxi Province

Ganzhou New Energy Base: Entrance and inside the factory area No. 1 Fenglin Avenue New Energy Technology City Ganzhou Economic and

The Board of Directors and its Audit Committee serve as the leading body for the Company’s anti-fraud work providing guidance and oversight for all Technological Development Zone Ganzhou City Jiangxi Province

anti-fraud initiatives. The Audit and Supervision Department functions as the permanent department responsible for executing anti-fraud work across the Zhenjiang Base: Entrance and inside the factory area No. 69 Hengshan Road New District Zhenjiang City Jiangsu Province

Company and its branches and subsidiaries and its department head reports to the Board of Directors and the Audit Committee.Guangzhou Base: Entrance and inside the factory area No. 998 Zhiming Road Jiufo Subdistrict Huangpu District Guangzhou City Guang-

dong Province

The Company has formulated and issued a series of systems including the Anti-Fraud Management System Accountability Regulations for Violations of

Discipline and Anti-Bribery Compliance Measures. It requires all employees to sign integrity agreements and proactively declare conflicts of interest to

standardize employee conduct explicitly prohibit any form of bribery and corruption that damage the legitimate economic interests of the Company or seek

improper economic benefits and prevent potential risks of bribery and improper interest conveyance. The Company evaluates reported clues received and forms a special investigation team

for clues with clear facts of violations of laws and regulations to carry out investigations. It Acceptance and Registration

In terms of supplier management the Company has updated and revised the Supplier Code of Conduct requiring suppliers to sign the Supplier Integrity clarifies operational specifications for each link from acceptance and registration

Commitment at the access stage conducting regular supply chain due diligence and incorporating indicators such as business ethics into the assessment preliminary verification case filing and investigation to result feedback and filing Preliminary Verification

requirements for supply chain sustainable development management as key audit indicators. completes fact verification within the specified time limit and feeds back the handling

results to whistleblowers. The Company has formulated and issued the Reporting and Case Filing and Investigation

Whistleblower Protection Regulations which strictly keep confidential the identity of

whistleblowers reporting content and investigation process explicitly prohibit any form Result Feedback

of retaliation and classify such acts as major disciplinary violations. Those who commit

retaliation shall be subject to punishment such as education warning or dismissal

Filing and Preservation

according to the seriousness of the circumstances and legal liability shall be pursued in

accordance with the law if serious consequences are caused.2025 Environmental Social

Integrity Culture Construction Risk Management

The Company formulates an annual audit plan for routine audits every year and conducts publicity and dissemination through diversified and normalized The board of directors of the Company serves as the highest governance body for risk management which is responsible for setting the overall objectives of

means such as issuing holiday initiatives employee violation and disciplinary action decisions and integrity publicity posters through office automation risk management and supervising the implementation of risk governance. Under the governance of the board of directors the Company has established a

systems such as OA. Meanwhile the Company organizes targeted special integrity training to strengthen the performance and responsibility requirements of "three lines of defense" risk governance architecture. Meanwhile the Company regularly or irregularly collects internal and external information for risk

key departments in terms of integrity and compliance. For partners such as contractors and suppliers the Company calls on partners to earnestly fulfill their identification judges whether the risks are within the acceptable range through multi-dimensional analysis and carries out all-round closed-loop manage-

integrity commitments by regularly sending notices on prohibiting gift-giving during holidays signing supplier integrity commitments and conducting ment for the evaluated important risks.supply chain due diligence.First Line of Defense: Business Departments

Case

Managers of business departments are the direct bearers and managers of risks and are responsible for identifying the businesses under their

jurisdiction.Farasis Energy (Ganzhou) Co. Ltd. Holds Supply Chain Anti-Corruption Thematic Education and Oath-Taking Conference

In May 2025 Farasis Energy (Ganzhou) Co. Ltd. held a supply chain

anti-corruption thematic education and oath-taking conference at its Second Line of Defense: Risk Management Department

Ganzhou base. The conference focused on the Company’s key

arrangements for anti-corruption in the new stage of strategic

development emphasizing that the supply chain must take discipline Responsible for the identified risks and the follow-up response rectification and follow-up supervision.as the foundation to consolidate development fundamentals and build

a three-dimensional integrity risk prevention and control system of

"system + ideology + action". The conference regarded integrity

practice as the lifeline for the stable operation of the supply chain and

required all employees to abide by the guidelines and strictly Third Line of Defense: Internal Audit Department

implement the systems. All employees of the Supply Chain Manage-

ment Center collectively signed the Anti-Corruption Commitment and

took an oath to internalize integrity contracts in mind and externalize Conduct inspection and audit on the risk management process.them in action so as to block the breeding ground of corruption from Farasis Energy organized supply chain anti-corruption thematic

the source and provide a solid disciplinary guarantee for the education and oath-taking conference.Company’s high-quality development.The management procedures for emerging risks follow the basic risk management procedures. If the identified risk is determined as an emerging risk in the

risk identification process the Company will carry out risk management based on the specific risk scenario and comprehensive consideration of business

characteristics.In addition the Company has joined external industry alliances such as the Corporate Anti-Fraud Alliance and the Sunshine Integrity Alliance to strengthen

the exchange and learning of integrity compliance experience.Risk Items Risk Points Risk Scenarios Countermeasures

The Company’s products trigger further Track relevant regulations of target

A large number and various

compliance risks due to non-compliance markets and conduct internal

Product Access types of overseas market

with local regulations. compliance assessments in a timely

access regulations.manner.Continuous geopolitical

conflicts and frequent Assess policy risks and take timely

sanctions by various countries Tariff sanctions anti-dumping and

Geopolitics actions in conjunction with relevant

thereby affecting the countervailing investigations. stakeholders to respond.The Company has joined the Corporate The Company has joined the Sunshine Integrity Company’s operation and

Anti-Fraud Alliance as a member unit. Alliance as a member unit. business development.2025 Environmental Social

Data Security and Privacy Protection

Type Description of Financial Impact Timeframe Scope of Response Measures

Potential Risks of Impact Impact

Governance Avoidable compliance

risks and penalty 1) Policy level: The Company has issued the

Risk of leakage Leakage of core

expenses; meanwhile Information Asset Security Management

The Company has constructed a three-level information security governance architecture of "management level - overall planning level - implementation and of core technical data differentiated Procedures to strictly stipulate data classifica-

landing level". The highest governance body is the Information Security Management Committee which is headed by the president and consists of senior technical data/ weakens core Short-term Upstream own advantages can be tion and protection measures.managers and relevant department heads. The committee has formulated and issued the Information Security Management Manual as a programmatic intellectual competitiveness and medium-term operations established through

property rights leads to a decline in long-term downstream 2) Technical level: The Company has launched a document which clearly specifies the information security policies strategies and objectives to provide guidance and basis for the Company’s information safety and compliance

and trade market share and terminal anti-leakage system and all data have security work. to enhance customer

secrets operating revenue. been encrypted to effectively ensure data

The Company takes the initiative to align with relevant domestic and foreign standards and requirements to improve the information security management stickiness and market security.system and takes the initiative to carry out information security certification work to enhance information security management and guarantee capabilities. share.During the reporting period the Company has successfully passed the TISAX Information Security Certification the National Information Security Class III

Level Protection Certification and other certifications. It may lead to system

vulnerabilities 1) The Company has issued the Personal

Meanwhile the Company focuses on the cultivation and capacity building of information security culture actively participates in external training industry

business interrup- Information Protection Management System

conferences and other activities to learn and understand the latest industry requirements and best practices and establishes an internal knowledge sharing

tions or data leakage to stipulate the management of the full data

mechanism to empower the capacity improvement of internal employees. At the same time the Company focuses on cultivating and establishing the informa- Risk of leakage It may lead to fines or resulting in life cycle;Long-term

tion security awareness of all employees and creates an information security atmosphere of full attention and active participation through regular broadcast- or abuse of increased operating Upstream own emergency response

ing of information security promotion videos special information security training for new employees and other methods. costs affecting orders operations 2) Meanwhile data has been encrypted and customer costs regulatory

privacy data and reducing downstream

stored on servers with minimized permissions

fines and reputation

operating revenue. and firewalls intrusion detection and

losses and affecting prevention systems (IDS/IPS) have been

customer contract deployed to ensure the security of networks

renewals and new servers and data.order acquisition.Management

Level

Overall Planning Impact Risk and Opportunity Management

Level

The Company has established a systematic risk assessment mechanism covering multiple dimensions of assets threats and vulnerabilities. The Company

classifies risk levels and implements graded disposal in accordance with the assessment results. A comprehensive emergency response mechanism has been

established. The Company has formulated the Information Security Incident Management Procedures and the Information Security Business Continuity

Implementation and Landing Management Procedures to clarify the emergency handling processes and measures for unexpected incidents. The Company has formulated emergency plans

Level for data or privacy leakage and conducted emergency plan drills to improve the response and handling capabilities of information security emergencies.In addition the Company has formulated and issued the Vulnerability and Patch Management System to regulate vulnerability management. The Company

conducts regular system vulnerability scanning and detection; the discovered vulnerabilities are strictly handled in accordance with the principle of "mandato-

Strategy ry patching for medium and high risks" to eliminate potential safety hazards in a timely manner.To strengthen the assessment and management of information security risks the Company has formulated and issued the Information Security Risk Assess-

ment Management Procedures. The Company organizes and conducts annual risk assessment and analysis and collaborates with all departments and bases Infrastructure Construction

to carry out workflows including risk identification status analysis risk evaluation and analysis risk treatment residual risk disposal and risk control. A formal

risk assessment report is generated upon completion of the process.To further strengthen information security protection capabilities the Company has deployed multi-layer equipment including firewalls anti-virus systems

bastion machines IPS and WAF to build an in-depth defense system covering the entire network servers and applications. The Company has strengthened

the information security infrastructure of the Company from physical network and software aspects to build a solid security line for all links.2025 Environmental Social

Physical Network Software Information Security Audit

Level Level Level The Company attaches great importance to information security audit and has formulated and issued internal documents such as the IT Audit Management

System to clarify the scope requirements and processes of IT audit. The Company conducts IT audits through a combination of internal and external audits

The Company has formulated a physical The Company has built a multi-layer network Anti-virus software and file encryption every year and forms IT audit reports to clarify rectification measures and plans. During the reporting period the Company successfully passed various

security management procedure to protection system. Security equipment such as system are deployed on terminals to internal and external audits such as listed Company financial audits TISAX audits customer access audits and internal information security audits.define clear security boundaries. Access firewalls IPS WAF online behavior manage- achieve real-time protection. Meanwhile

control and video surveillance are ment and bastion machines are deployed at the a graded data backup strategy is

installed in key areas and 24-hour boundary to achieve access control attack formulated according to the importance

security personnel are arranged to protection and behavior auditing. The internal of the system and key data are backed Information Security Culture Construction

strictly control the entry and exit of network is divided into office network up regularly to ensure rapid recovery in

personnel and visitors so as to ensure production network and OT network and case of accidents and guarantee The Company has established an information security issue feedback and reporting mechanism covering all stakeholders with convenient channels and

the physical environment security of network isolation is implemented to prevent business continuity. standardized disposal processes which is publicized through the official website to ensure that relevant parties can timely and standardly feedback informa-

information assets. the spread of risks and ensure the independent tion security hazards and continuously improve information security risk prevention and control capabilities.and stable operation of each network.Information Security Issue Feedback Channels

Information Security Protection Email: infosec@farasisenergy.com.cn Tel: +86 0793-7329933

In terms of customer privacy protection

The Company has formulated and issued the Data Protection Management System to clarify the requirements for hierarchical and classified data Indicators and Targets

management. Customer privacy data are encrypted and de-identified and data extraction interaction and encryption are strictly managed through

internal control procedures and approval authority restrictions to effectively protect customer privacy and data security.To further track and manage the effectiveness of data security and privacy protection management and practices the Company has set a series of indicators

for control and regularly reviews the targets and work progress to improve performance. During the reporting period no data security or customer privacy

information leakage incidents occurred.In terms of supplier information security management Indicator Unit 2023 2024 2025

Number of customer information leakage incidents case 0 0 0

The Company incorporates data security capability into the core access standards for third-party cooperation. The Company has formulated and

issued documents such as the IT Supplier Information Security Management System established a supplier access security assessment and annual

information security evaluation mechanism requiring comprehensive security capability assessment and compliance due diligence on suppliers. The Amount involved in data security incidents ten thousand yuan 0 0 0

Company also promotes and explains the Company's information security strategies and requirements and requires confidential suppliers to sign

Confidentiality Agreements. The Company clearly requires the consent of stakeholders for the processing sharing and retention of confidential

Proportion of operating sites with TISAX certification % 100 100 100

information to prevent illegal access or disclosure of third-party data and ensure that IT risks are under control.Number of information security emergency drills* session / / 2

In terms of confidential information management

Number of data security and privacy protection training sessions* session / / 5

The Company has formulated and issued the Personal Information Protection Management System. The processing of employees’ personal informa- Annual information security training coverage rate* % / / 100

tion must be legal and compliant throughout the process and the processing of the Company’s confidential information must go through a complete

authorization process and obtain the approval of the person-in-charge of the department to which the data belongs. In addition through the

Information Security Incident Management Procedures the full life cycle management process of confidential information leakage incidents is *Note:

clarified. If a confidential information leakage incident occurs in violation of regulations the information security team will analyze and evaluate the

The indicators above are newly added in 2025. No relevant statistics were collected in 2023 and 2024 hence marked as "/".incident level and initiate the corresponding level of disposal and internal and external reporting processes.Green

Development

Climate Change Response

Environmental Compliance

Pollutant Emission and Waste

Treatment

Resource Utilization

Ecosystem and Biodiversity

Conservation2025 Environmental Social

Climate Change Response Risk Type Description of Potential Risks Financial Impact Time Horizon Scope of

of Impact Impact Response Measures

Governance The Company’s domestic production Damage to bases are located in Ganzhou infrastructure Strengthen inspection of workshops

Zhenjiang and Guangzhou which are increased and equipment manage electricity

exposed to extreme weather impacts equipment consumption and promote awareness

The Company accelerates the development of its capacity to address climate change systematically identifies and manages climate-related risks and to varying degrees. maintenance and of energy conservation and consump-

opportunities that may affect its business and establishes a three-level governance structure consisting of "Leadership Level – Management Level – energy costs and tion reduction to improve the efficiency

Extreme high temperatures or

Implementation Level" to orderly advance the governance and practices of climate change response-related topics. Meanwhile the Company continuously increased of energy use.abnormal climate conditions expenditure on

improves its working mechanisms for carbon emission statistics accounting monitoring management and information disclosure. With reference to the increase equipment wear and employee health and Strengthen safety risk management

international standards of ISO 14064/14068 the Company has formulated management systems for carbon inventory reporting and carbon neutrality and Physical operational energy consumption. safety protection will Upstream and control hidden danger investiga-Short-term

incorporated indicators such as energy conservation and consumption reduction ISO 14064 certification and zero-carbon factory certification into the Risk – lead to higher Own tion monitoring and early warning of Typhoons floods and other disasters Medi-

Extreme operating costs. Operations weather conditions such as typhoons annual performance appraisal indicators of relevant departments. may cause water damage to facilities um-term Downstream and precipitation implement flood

Weather and equipment potentially leading Restricted prevention measures improve the

to production suspension production capacity emergency management mechanism

transportation disruption and other and supply chain and enhance the capacity for

Leadership Level risks. disruptions will emergency response to extreme

Board of Directors and its Special Typhoons precipitation high affect production weather and major natural disasters.Committees As the supreme decision-making body for ESG affairs the Board of Directors and its Special Committees temperatures and other conditions arrangements and

make decisions on major matters related to the Company’s climate change response and regularly hear Establish a diversified supply chain tend to trigger hidden dangers of product delivery

infectious diseases such as dengue resulting in reduced

layout to ensure the reserve of key

work reports from the ESG Management Committee. operating revenue. materials and rationally arrange fever. transportation routes and plans.Strengthen the assessment and

Management Level response to water use safety risks

ESG Management Committee implement water resource manage-

Responsible for evaluating and reviewing matters related to the Company’s climate change response ment plans and set water conservation

including the adequacy of resources compliance effectiveness of procedures and overall performance of targets.the Company in addressing climate change and providing recommendations to the Board of Directors Salinization of groundwater may Carry out practices of water recycling

and its Special Committees. trigger the risk of water shortage. Restricted Upstream and reuse enhance the research and Physical The upstream suppliers and the production capacity development of water-saving

Risk – Sea Company’s own production rely on Own and reduced Long-term technologies and the application of

Level Rise water resources to a certain extent

Operations

operating revenue. water-saving equipment to reduce

and water shortage will lead to Downstream operational vulnerability and water

Implementation Level supply chain disruptions. costs.Sustainable Development

Department Responsible for formulating development plans related to climate change response establishing working Comprehensively consider factors such

as extreme weather and water resource

mechanisms for target setting and tracking as well as risk and opportunity management and evaluation supply to ensure the long-term

mechanisms and submitting such documents to the ESG Management Committee for review and sustainability and resilience of project

reporting; formulating annual work plans for climate change response leading and coordinating relevant site selection decisions.departments to set up special working groups to implement various measures such as carbon inventory

carbon verification energy conservation and carbon reduction.Strengthen organized carbon emission

management and promote the

establishment of sound relevant

Transition China’s energy policy has shifted working mechanisms to ensure

from dual control of energy

Risk – Increase the Short-term compliance with requirements;

Strategy consumption to dual control of

Own

Company’s Medi- Operations Conduct carbon inventory strengthen Policy and carbon emissions while imposing compliance costs. um-term carbon emission management

Legal Risk higher requirements on product implement measures such as energy

carbon footprint management. conservation carbon reduction and use

Farasis Energy (Ganzhou) Co. Ltd. attaches great importance to the management of climate-related risks and opportunities. The Company takes the initiative of clean energy to facilitate the

to study and understand relevant policies regularly identifies climate-related risks and opportunities and develops response measures. Through standard- transformation of the energy structure.ized management the Company aims to mitigate risks achieve sustainable development reduce its impact on the climate and environment in the process of

production and operation and adopt effective measures to manage climate risks.Note: The Company defines the time horizon as follows: short-term (1 to 2 years inclusive) medium-term (3 to 5 years inclusive) and long-term (more than 5

years).2025 Environmental Social

Risk Type Description of Potential Risks Financial Impact Time Horizon Scope of

of Impact Impact Response Measures Analysis of Key Transition Opportunities and Response Measures

Conduct research on domestic

and foreign policies and actively

participate in the formulation of Type

Climate-Related Financial Impact Time Horizon Scope of Response Measures

Increase investment in Opportunities of Impact Impact

relevant domestic and

Influenced by international policies product carbon footprint

management supply chain international standards;Transition of the EU the United States Europe

Risk – and other regions exports of battery

compliance digital Upstream

Short-term Establish special and cross-de- Strengthen value chain collaboration

products are restricted and higher transformation and other Own Medi- partmental working groups to

Policy and aspects leading to higher Operations The external environ-

work with upstream and downstream

requirements are put forward for um-term promote the improvement of operating costs;Non-com- Downstream ment including battery The application of renewable

partners to promote the construction

Legal Risk product carbon footprints and relevant management systems

pliant products will result in recycling restricted use and recycled materials helps

and large-scale application of the

supply chains. and working mechanisms

restricted exports and of hazardous reduce production and

battery recycling system conduct R&D

ensure the implementation of

reduced operating revenue. substances and rising operating costs; Upstream

on recycled materials and related

relevant work requirements and Resource Medi-prices of raw materials Own technologies reduce reliance on raw

guarantee that products meet Developing alternative um-term Efficiency such as lithium metal Operations materials and enhance supply chain

market access criteria. products such as Long-termimposes higher Downstream resilience;

transformation sodium-ion batteries Accelerate the R&D and application of

requirements on diversifies the product

portfolio and improves recycling and renewable materials products and business

Increase investment in R&D develop alternative product lines such as models.Higher requirements are imposed on procurement equipment Increase R&D investment sodium-ion batteries and improve

manufacturing production and renovation and other costs promote the application of product competitiveness.product R&D in terms of low-carbon for low-carbon materials low-carbon materials and

materials renewable and recycled and technologies; renewable recycled materials

Transition materials manufacturing processes and develop green and

recycling and circular utilization; Higher R&D investment in

Upstream low-carbon products meeting

Risk –

technologies improving Long-term Own market demands;

Technology Extreme climate changes affect the battery climate adaptability Operations Direct procurement of green

Risk stability of power batteries raising limited battery stability may Downstream Strengthen R&D collaboration The capacity for clean power and self-built Gradually increase photovoltaic installed

requirements for R&D and trigger product recalls and jointly conduct technological energy accommodation photovoltaic power capacity implement clean production

application of technologies other incidents increasing research with upstream on the grid side is generation directly reduce measures strive for government

enhancing the climate adaptability of operating costs and suppliers and downstream

customers to improve product further improved and energy costs and also help

subsidies and apply for green financing;

batteries. reducing operating

stability and performance. the stability and lower carbon compliance revenue. Actively participate in projects such as tradability of green costs; self-built photovoltaic Upstream direct green power connection and

Energy power supply are projects may obtain Short-term Own formulation of international carbon

Medi-

Increase operating costs Source

enhanced; government subsidies and Operations emission standards;

tax incentives; um-term

including carbon The technology and Downstream Strengthen energy management and

accounting and carbon market for distributed Clean production helps

reduction in carbon Strengthen supply chain carbon

clean production implement compre-

renewable energy have create "zero-carbon" and

emission management and hensive energy conservation and carbon

Internal and external policies as well emission management matured facilitating the "low-carbon" products reduce supply chain product reduction and take the lead in adopting

as overseas downstream customers energy structure enterprise’s energy enhances product market carbon footprints; new technologies processes and

have raised attention and transformation product transformation. competitiveness and facilities.requirements on the Company’s carbon footprint Promote energy structure improves profitability

Transition carbon emission management

management and

transformation increase the

energy structure transformation and certification; Upstream

Risk – Short-term proportion of clean energy used product carbon footprints with Own Excessively high product Medi- in production implement green

Market preferences shifting toward green Operations carbon footprints will push um-term electricity/green certificate

Risk and low-carbon products; Downstreamup product prices weaken procurement carry out

market competitiveness energy-saving technological The development of Emerging industries such as Affected by external factors such as Rely on the experience of successfully

policies and market supply-demand reduce operating revenue

transformation and carbon emerging industries and humanoid robots eVTOL applied product projects increase R&D

reduction initiatives establish a and unmanned aerial

relations prices of green certificates and lower profitability; the energy transforma- investment to deepen market product life cycle management

and other products rise. tion of traditional

vehicles as well as penetration expand technological and

Regulatory pressures on system to lower product carbon industries create a traditional industries such as product advantages and strengthen

the upstream supply chain footprints. broad market for power ships mining trucks and Own core competitiveness;Leverage the

drive up raw material prices batteries; cranes represent future

Medi-

Market Operations Company’s technological and R&D increasing procurement market growth opportuni- um-term Downstream strengths to accelerate the layout of the

costs. Demand is growing for ties and target markets for Long-term energy storage business actively

energy storage the Company’s products; participate in energy storage standard

batteries for power

Strengthen sustainable The broad demand in the formulation and demonstration project Transition Any adverse environmental or stations commercial Harms the Company’s management and information energy storage market helps construction and seize market

Risk – climate-related conduct by the and residential brand image and credibility Own disclosure to maintain brand the Company develop new opportunities in the energy storage

Company may damage its reputation applications.restricts orders and Long-term Operations reputation and safeguard the business growth points. sector.Reputa- and drive away investors and

tional Risk reduces operating revenue.Downstream long-term value of the

customers. enterprise.2025 Environmental Social

Impact Risk and Opportunity Management Environmental Compliance

The Company strengthens the management of climate-related risks and opportunities. Based on internal and external development environments including

the Company’s business conditions and industry background the Company identifies and assesses climate-related risks and opportunities with potential

impacts on the Company through executive interviews departmental investigations and expert opinions and discusses and formulates targeted response Environmental Compliance Management

measures. Meanwhile the Company takes proactive actions in various aspects such as organizational carbon emission management product carbon

footprint management energy conservation emission reduction and consumption reduction improves relevant management mechanisms and implements The Company has established and improved its environmental management system and set up an Environmental Management Committee chaired by the

diverse practices in light of actual business operations to enhance its capacity to address climate change. President as the supreme decision-making body for corporate environmental management which is responsible for the effective operation of the Company’s

environmental management system. The Company has established a target and indicator monitoring system to supervise the compliance of various environ-

Indicators and Targets mental protection data and has duly revised and issued the Farasis Energy Environmental Management Statement signed by senior management as a

programmatic document. The Company commits to timely and proactive disclosure of environmental information to the public and active communication and

In accordance with the ISO 14064 standard the Company has established a greenhouse gas and carbon neutrality management organization with the cooperation with stakeholders to address environmental challenges.President as the highest leader and formulated management systems for carbon inventory reporting and carbon neutrality. Led by the Sustainable Develop- The Company signs annual EHS target responsibility letters with senior management every year incorporating environmental management indicators such as

ment Department the Company conducts annual greenhouse gas inventories for Scope 1 Scope 2 and Scope 3 and entrusts an independent third party to compliant discharge of "three wastes" and environmental pollution accidents into the annual performance appraisal of management and relevant responsible

conduct verification to ensure the authenticity and reliability of the Company’s greenhouse gas calculation data. In 2025 the Company’s Ganzhou Base and departments. Meanwhile the Company has introduced and certified the ISO 14001 Environmental Management System achieving 100% coverage of environ-

Zhenjiang Base successfully passed the ISO 14064 carbon verification certification. mental management system certification at production bases with stable operation and qualification. The Ganzhou Base and Zhenjiang Base were success-

fully awarded the title of "National-Level Green Factory".Greenhouse Gas Emissions1 The Company has completed environmental impact assessments for construction projects in strict accordance with laws and regulations including the

Environmental Impact Assessment Law of the People’s Republic of China implemented the "three simultaneous" system and pollutant discharge permitting

system for construction projects and formulated the Monitoring and Measurement Management Procedures. All bases conduct regular self-monitoring and

Indicator Unit 2023 2024 2025 outsourced environmental testing as required and disclose environmental information in accordance with relevant laws and regulations. Benefiting from

effective environmental risk control and a sound environmental monitoring system the Company is recognized as a non-key pollutant discharge entity.Total GHG Emissions (Scope 1 + Scope 2) tCO?e 371657.34 289082.48 278171.25 During the reporting period the Company complied with environmental protection laws and regulations with no violations of environmental laws and

regulations and no penalties imposed by competent authorities.GHG Emissions per Unit Energy Consumption (Scope 1 + Scope 2) tCO?e / / 2.9

Total Scope 1 GHG Emissions tCO?e 4328.28 3679.09 5113.22

Direct GHG Emissions per Million RMB Revenue (Scope 1) tCO?e / /

Obtained environmental management National-level green

Total Scope 2 GHG Emissions (Location-Based) tCO?e 367329.06 285403.39 273058.05 system certification factories

Total Scope 2 GHG Emissions (Market-Based) tCO?e 246221.5 265853.66 221150.66

Sites Sites

Indirect GHG Emissions per Million RMB Revenue (Scope 2) tCO?e / /

Total Scope 3 GHG Emissions tCO?e 987510.47 841536.69 9387013

Other Indirect GHG Emissions per Million RMB Revenue (Scope 3) tCO?e / /

Environmental Risk Management and Control

GHG Emission Intensity tCO?e / million RMB revenue 22.61 24.75

Directly Reduced Scope 1 GHG Emissions tCO?e 1952.20 649.19 -1434.11 The Company attaches great importance to environmental risk management and control

and has formulated the Procedures for the Identification and Evaluation of Environmental

Directly Reduced Scope 2 GHG Emissions tCO?e 51176.84 81925.67 12345.34 During the reporting period

Aspects. The Company conducts environmental aspect identification and environmental

GHG Offsets (Scope 1 & Scope 2) tCO?e / / 46062.62 risk assessment at least once a year using a scoring coefficient combined with multi-fac- The environmental risk assessment coverage

tor scoring method to evaluate environmental aspects. It also compiles a list and manage- rate of all operating sites reached

Direct GHG Offsets (Scope 1) tCO?e / / 12950 ment plan for significant environmental aspects to identify and control environmental

risks. Through monthly regular work review meetings and special inspections as well as

Indirect GHG Offsets (Scope 2) tCO?e / / 33112.62 cross-checks and on-site audits among subsidiaries (bases) the Company identifies

problems and risks in the implementation process of various departments and carries out

Carbon Emission Reduction Equivalent from Clean Energy Generation tCO?e / / 18359.89 closed-loop management to ensure that environmental risks are under control. During the

reporting period the environmental risk assessment coverage rate of all operating sites

*Data Notes:

1 Carbon inventory has not yet been conducted at the Guangzhou Base and Ganzhou New Energy Base in 2025. Therefore GHG emission data for 2023 2024 reached 100%.

and 2025 in this table only cover the Ganzhou Base and Zhenjiang Base. Some indicators in the table are newly added and were not counted in 2023 and 2024

hence marked as "/".

2 The increase in Scope 1 GHG emissions is mainly due to the addition of R428A and heptafluoropropane fire extinguishers at the Zhenjiang Base which have

high global warming potential (GWP) values leading to a rise in total emissions.

3 The increase in Scope 3 GHG emissions is mainly attributed to the update of the carbon emission factor for road freight transportation which was revised

from 0.049 kgCO?e/t·km (originally from CPCD) to 0.2157 kgCO?e/t·km [from GHG S3.4 & 3.9 China Road Transport Emission Factors (2024)] representing a

4.4-fold increase over the original factor.2025 Environmental Social

Environmental Emergency Management Pollutant Emission and Waste Treatment

The Company highly values environmental training and emergency management and has The Company strictly abides by environmental laws and regulations including the Water Pollution Prevention Law of the People’s Republic of China the Air

During the reporting period established a four-tier emergency rescue system (employee level workshop level Company Pollution Prevention Law of the People’s Republic of China the Solid Waste Pollution Prevention Law of the People’s Republic of China and the Noise Pollution

level and social forces) and a grid-based unit management system to strengthen the preven- Prevention Law of the People’s Republic of China. It has formulated systems such as the Wastewater Management Regulations Waste Gas Management

The Company conducted environmental

protection emergency drills. tion and response to environmental emergencies. For specific scenarios such as chemical Regulations and Hazardous Waste Management Regulations set relevant targets strengthened the daily management of pollution control facilities and

leakage hazardous waste leakage industrial wastewater leakage and environmental pollution equipment standardized operation files developed monitoring plans and conducted regular pollutant monitoring. Every year the Company entrusts

accidents derived from fires the Company has formulated the Emergency Plan for Environmen- qualified third-party monitoring institutions to regularly monitor wastewater waste gas and noise to ensure the accuracy and reliability of monitoring data.sessions tal Emergencies and the Procedures for Accident Reporting Investigation and Handling In addition the Company has formulated and implemented an emergency plan for environmental pollution accidents and organized review meetings with

developed training and drill plans and conducted training and emergency drills in accordance

external experts to ensure the operability and effectiveness of the plan. Each base conducts regular emergency drills to improve the response capacity to

with the plans.environmental emergencies and minimize or avoid environmental pollution risks.Environmental Protection Culture Development

The Company integrates the low-carbon concept into daily operation processes establishes a normalized environmental protection training system and

incorporates environmental protection laws and waste management requirements into the onboarding training for new employees to ensure that all employ- Waste Gas

ees master the basic knowledge and skills of environmental management achieving full coverage of environmental-related training. Meanwhile the Company

has launched courses such as Corporate Environmental Management Training and Environmental Protection on the online learning platform to cultivate 1) Emission Sources: Production waste gas testing waste gas etc.environmental compliance awareness and improve capabilities among all employees consolidating the foundation of the corporate environmental

protection culture. 2) Major Pollutants: Particulate matter non-methane total hydrocarbons sulfur dioxide nitrogen oxides etc.

3) Pollution Control Facilities: NMP recovery (condensation + water spray) alkaline spray + electrostatic precipitation + activated carbon

During the reporting period adsorption activated carbon adsorption etc.Organized environmental protection Employees receiving environmen- 4) Treatment Method: Discharged up to standard after treatment by waste gas treatment facilities.training sessions tal-related training.* Sealed Production Line Waste Gas Management: Negative pressure gas collection hoods are installed in partially open areas to prevent

times unorganized fugitive emissions of waste gas and segmented recovery is carried out through pipelines. Most waste gas is recovered by cryogen-

ic condensation in the oven section; a small amount of uncondensed NMP is absorbed by water spray. After multiple rounds of spray absorption

the remaining tail gas is adsorbed by activated carbon and discharged through waste gas pipelines. With the above recovery measures the

NMP recovery rate exceeds 99%.Case * Electrolyte Waste Gas Management in Injection Process: Two-stage activated carbon adsorption is adopted to reduce waste gas emissions."June 5" World Environment Day Environmental Training and Publicity Campaign

The Company sets an "Environmental Protection Promotion Month" every year and carries out various environmental protection publicity

activities providing incentives to employees who participate to stimulate their internal motivation to understand and care about environmental Wastewater

protection. In 2025 the Company conducted low-carbon and environmental protection training for environmental protection management

personnel in various departments covering environmental protection awareness solid waste management wastewater waste gas and 1) Emission Sources: Production wastewater domestic sewage etc.hazardous waste discharge and disposal management. It encouraged environmental management personnel to apply what they have learned to

daily management. 2) Major Pollutants: COD SS NH?-N TP TN suspended solids etc.

3) Pollution Control Facilities: Production wastewater pretreatment system integrated wastewater treatment system septic tanks.

4) Treatment Method:

* The production wastewater pretreatment system adopts coagulation sedimentation + air flotation + anaerobic process; the integrated

wastewater treatment system adopts hydrolysis acidification + contact oxidation + MBR process. The treated wastewater is discharged to the

municipal sewage treatment plant through the main outlet up to the discharge standard.* Wastewater generated from cleaning of ingredient tanks for positive and negative electrode slurry first flows into waste slurry sedimentation

tanks (separate tanks for positive and negative electrodes) then is uniformly discharged through sewage pipelines to the Company’s wastewa-

ter treatment station for treatment and discharged to the municipal sewage treatment station after meeting standards."June 5" World Environment Day Publicity Campaign Solid Waste Knowledge Training2025 Environmental Social

General Solid Waste Resource Utilization

1) Emission Sources: Material unpacking scrapped production leftovers rejected defective products etc.

2) Major Wastes: Waste packaging materials waste leftovers defective products etc. Energy Management

3) Waste Treatment Facilities: Special storage yard for general solid waste.

4) Treatment Method: Classify and collect non-hazardous waste by category transfer to special temporary storage areas at each base with clear Governance

labels. Sign contracts with qualified disposal units to promptly transfer solid waste according to production conditions and implement

The Company has established an energy management organizational structure consisting of the "President – General Manager of each Base – Functional

leak-proof and spill-proof measures during transportation. Keep full records of the recovery volume of all types of waste to form ledgers and

Departments" and formulated and issued documents including the Energy Management Manual Control Procedures for Energy Management Measures

realize full-process traceability.Energy Operation Control Procedures and Control Procedures for Energy Monitoring Measurement Analysis and Performance Evaluation so as to standard-

ize and optimize energy and data management processes. In addition the Company incorporates performance indicators related to energy management

energy conservation and consumption reduction into the annual performance appraisal indicators of relevant responsible departments and managers.Furthermore the Company attaches importance to the cultivation of employees’ awareness and capacity of energy conservation regularly organizes special

Hazardous Waste training on energy conservation management actively responds to the call of the National Energy Conservation Publicity Week and launches activities such

as energy conservation knowledge competitions and the "My Low-Carbon Life" 7-day check-in campaign integrating energy conservation and carbon

1) Emission Sources: Electrolyte injection changeover replacement of activated carbon in waste gas treatment facilities glue pouring etc. reduction awareness and concrete actions into employees’ daily production and life.

2) Waste Types: Waste electrolyte waste activated carbon waste glue etc.

3) Pollution Control Facilities: Hazardous waste storage warehouse.

4) Treatment Method:

* Special temporary storage warehouses for hazardous waste have been established all meeting the "four-proof" requirements of windproof

rainproof sunproof and anti-seepage. Compliance signs such as zoning plates information bulletin boards solid waste pollution prevention

responsibility systems and emergency disposal measures are posted in the warehouses.* A hazardous waste management plan is formulated based on management ledgers and recent production plans. The ledgers truthfully

record the type quantity utilization storage disposal and flow direction of hazardous waste and are managed by dedicated personnel.* Containers and packages for hazardous waste as well as sites generating collecting storing transporting and disposing of hazardous Ganzhou New Energy Base Energy Conservation Ganzhou New Energy Base Energy Conservation

Knowledge Training Session Knowledge Competition

waste are equipped with corresponding marks warning signs and labels in accordance with the law. Labels indicate the category hazard and

start storage time of the stored waste.* Strictly implement the approval procedure for hazardous waste transfer plans and legally operate hazardous waste transfer manifests. During the reporting period the Ganzhou Base and Zhenjiang Base which maintain stable operation and hold certification qualifications were audited to

Transfer plans and electronic transfer manifests are registered through the information system. meet the requirements of ISO 50001:2018 and successfully obtained corresponding certificates. Other bases will also promote relevant certification upon

meeting the certification conditions.* Establish and improve internal management systems for hazardous waste generators implement the hazardous waste generation informa-

tion disclosure system improve relevant archives management systems and formulate and improve emergency plans for sudden hazardous

waste environmental incidents.Strategy

The Company continuously promotes energy structure optimization and energy efficiency improvement through technological energy conservation

Noise management energy conservation clean energy application and other approaches. Relying on its technological R&D advantages the Company adopts

advanced processes and high-efficiency equipment in production line design and continuously optimizes manufacturing processes to achieve energy

conservation at the source. Meanwhile it builds an intelligent energy management system to tap into the potential of management energy conservation

1) Emission Sources: Mainly equipment noise traffic noise etc. through real-time monitoring data analysis and lean operation.

2) Pollution Control Facilities: Mufflers sound insulation covers or closed mechanical sheds sound-absorbing materials personal protective The Company actively responds to the call for clean energy transformation and increases the proportion of clean energy use by purchasing green electricity

equipment. building distributed photovoltaic power generation systems and other means. At the same time it is planning and laying out the construction of an integrated

3) Treatment Method: photovoltaic-storage-charging energy storage power station to drive the green and low-carbon transformation of the energy consumption structure. In

2025 the Company’s total installed photovoltaic capacity reached 34.29 MWh and the on-site photovoltaic power consumption amounted to 34602.13 MWh

* Cut Off Transmission Path: Install sound insulation covers or closed mechanical sheds for equipment to physically isolate noise sources (e.g. equivalent to a reduction of 18359.89 tCO?e of emissions.set equipment rooms to separate noise-generating equipment); use sound-absorbing materials (e.g. sound-absorbing ceilings) in workshops

to absorb reflected sound waves; construct sound insulation barriers or use green belts as acoustic barriers (e.g. install sound insulation

screens for air compressors chillers and other equipment near residential areas to reduce adverse impacts). Impact Risk and Opportunity Management

* Individual Protection: Provide appropriate personal protective equipment such as earplugs or earmuffs for operators in noise-exposed posts

to reduce hearing exposure. A health monitoring system shall be established with regular hearing tests. The Company regularly identifies energy-related risks and opportunities and integrates them into energy reviews and management reviews establishing a

closed-loop management mechanism covering identification assessment formulation of response measures continuous monitoring and improvement so

as to enhance the Company’s operational resilience in the context of energy transformation and climate change.2025 Environmental Social

To fully and systematically implement various energy conservation initiatives each base has set up a special working group and established a cross-depart-

mental collaborative working mechanism including patrol inspection energy conservation auditing evaluation and rectification review and analysis and Water Resource Utilization

reporting. Based on actual business operations an energy consumption monitoring platform has been built to improve energy management efficiency and In accordance with the Energy and Resource Management Procedures the Company regularly compiles analyzes and publishes water use and water conser-

energy use efficiency through refined management measures such as real-time collection of energy data analysis and early warning. In 2025 the Company vation status. While ensuring supply the Company has adopted a series of effective measures to safeguard water safety. All operating sites are supplied with

invested 3086500 yuan in energy-saving renovation projects. municipal tap water. In 2025 the Company had no water resource-related impacts caused or contributed to by water intake water consumption or drainage

Status of Energy Conservation and Emission Reduction in 2025 (Partial) nor any water-related impacts directly generated by operations products or services through business relationships.Heat Recovery Renovation for Desiccant Rotor Dehumidification Units Energy Saving Renovation for Aging Air Conditioning Units

A heat recovery device was installed on the 40000-air-volume desiccant Intelligent control optimization and high-efficiency component replace-

rotor dehumidification unit to recover exhaust air energy for fresh air ment were carried out for air conditioning units in aging workshops to Established a secondary and tertiary water meter metering network covering major water consumption units (workshops production

pre-treatment significantly reducing cooling and reheat energy realize on-demand cooling and precise temperature control. Metering and lines dormitories); supervised water supply especially during production ramp-up stages by closely monitoring daily water use

consumption. Monitoring changes to detect and resolve potential problems in a timely manner.Linked Optimization of Compressed Air Pipelines Collaborative Optimization of Power Systems

By connecting the compressed air pipe networks of Cell Plant No. 2 and Projects such as "linked compressed air pipelines between cell and Pack Developed and implemented regular inspection and leak detection plans for water supply networks to promptly identify and repair

Pipe Network

the Pack Plant integrated gas source scheduling and load balancing were plants" were implemented to reduce redundant operation of air compres- running dripping leaking and seeping issues.* Separated rainwater and sewage pipe networks; cooling tower drainage and Maintenance

achieved reducing inefficient operation time of air compressors. sors through pipe network interconnection and intelligent scheduling rainwater harvesting are implemented at the power station.improving the overall energy efficiency of the public power system.Procurement and Application of Energy-Saving Equipment Waste Heat Recovery from Dust Collectors

Condensed Water

Priority was given to purchasing energy-saving production equipment Waste heat from dust collector exhaust was recovered and connected to Recovered condensed water from air conditioning systems and process equipment as supplementary water sources.Recovery

such as motors water pumps and fans that meet China’s Class 1 energy the return air duct of dehumidifiers to reduce steam and power consump-

efficiency standards. LED energy-saving lighting was promoted and tion of dehumidifiers.intelligent sensor control systems were installed in warehouses corridors

and other areas to eliminate ineffective lighting.Promotion of

Water-Saving Deployed water-saving sensor faucets water-saving toilets and other efficient fixtures.Equipment

Waste Heat Recovery from Air Compressors

Waste heat from air compressors was recovered to dryers for removing moisture from compressed air replacing electric heating with waste heat recovery.Publicity and Continuously promoted water-saving concepts and practices through internal posters knowledge competitions special training and

Indicators and Targets Training other channels.The Company’s direct energy consumption mainly includes gasoline diesel and other fuels while indirect energy covers purchased electricity and purchased

steam. Coal wind energy biomass energy and other types are not involved. The annual energy consumption is shown in the table below.Indicator Unit 2023 2024 2025 Ecosystem and Biodiversity Conservation

Total Direct Energy Consumption tce / / 2677.44

Total Indirect Energy Consumption tce / / 93382.13

The Company strictly abides by laws regulations and policies including the Environmental Impact Assessment Law of the People’s Republic of China

Total Energy Consumption tce 93987 82222.282 96059.58 Guidelines on Further Strengthening Biodiversity Conservation Soil Pollution Prevention and Control Law of the People’s Republic of China and Groundwater

Management Regulations and implements management in accordance with local implementation rules to ensure that operational activities do not adversely

Clean Energy Consumption tce 6408.38 8329.33 14463.03 affect surrounding ecosystems and biodiversity.At present none of the Company’s leased or operating sites are located in protected areas or biodiversity-rich zones. No major incidents affecting biodiversity

Energy Consumption Intensity tce / million revenue 5.72 7.04 10.54

occurred in 2025.Win-Win

Cooperation

Customer Relationship

Management

Employee Relationship

Management

Community Relationship

Management

Industrial Ecosystem

Collaboration2025 Environmental Social

Customer Relationship Management Strategy

As a key part of the full life cycle management of the Company’s power battery products the Company has built a customer-centric and efficient service

Governance system by optimizing the organizational structure improving service efficiency and perfecting the complaint management mechanism striving to provide

customers with an excellent service experience and enhance customer satisfaction. Meanwhile the Company has established and continuously optimized an

authorized service network supporting the overall strategic development goals through effective large-scale layout standardized management and digital

Farasis Energy (Ganzhou) Co. Ltd. has established a dedicated after-sales service management department and formulated the After-Sales Service Support empowerment. The Company has more than 120 authorized service stations strategically covering major urban agglomerations and key new energy vehicle

Process to standardize the end-to-end workflow from reception diagnosis and handling to delivery. Multiple customer feedback channels are available to markets across the country ensuring a reasonable service radius and providing customers with convenient and accessible professional services. In addition

fully protect customer rights and interests. In addition all service stations have passed strict qualification review and on-site certification and core technical the Company has established a full-process management system covering "access training operation and assessment" and gradually promoted the digitali-

personnel are required to complete systematic training. Through regular special training and experience-sharing sessions the Company continuously zation of service processes. The online management of work orders technical support and parts traceability is realized through the system platform improv-

enhances employees’ professional skills service awareness and teamwork capabilities fostering a collaborative team culture that enables the team to deliver ing operational efficiency and transparency.reliable professional and caring after-sales experiences.Full-Chain Standard Operating Procedure for After-Sales Service Impact Risk and Opportunity Management

Customer Complaint Handling

Reception Diagnosis Handling Delivery The Company has formulated and strictly implemented the After-Sales Service Support Process to standardize the handling of customer

complaints opened diversified feedback channels such as telephone email and WeChat and assigned special personnel to receive relevant

repair information. End customers can provide feedback to on-site service personnel or regional service managers through 4S stores

authorized service stations and other channels and the Company provides 24/7 all-weather service.FPre Fully capture customers’ real accurate and complete demands to ensure rapid response to reasonable

Sales requests and timely provision of technical support and solution design. Customer Satisfaction Management

The Company has formulated and improved institutional documents such as the Customer Satisfaction Management Procedures clarifying

the scope frequency standards and evaluation process of surveys. In 2025 in strict accordance with the procedures the Company organized

several special surveys for mass production vehicle customers focusing on core dimensions including product quality delivery timeliness and

after-sales service. Through scientific research and rigorous analysis the results of all customer satisfaction surveys throughout the year

stably met and exceeded the management objectives.Adopted a digital and intelligent customer management model. Through tracking mechanisms including

During customer demand planning order management and credit management closed-loop management of

Sales demand-order-scheduling-delivery-payment collection is realized improving response speed and

management efficiency.Responsible Marketing

In terms of marketing the Company effectively identifies and objectively reviews customer requirements and strictly prohibits unfair competi-

tion through improper means. When accepting customer orders based on the Order Review Control Procedures the Company truthfully

Committed to building a customer-centric global after-sales service system. By systematically optimizing

presents its existing commercial capabilities and never provides any false information to ensure business integrity.After the domestic network and planning global layout continuously improving team functions enhancing

spare parts efficiency and response speed and deepening collaboration with customers the Company

Sales

steadily upgrades its comprehensive service capabilities and customer satisfaction providing customers

with high-quality full-lifecycle service experiences.2025 Environmental Social

Employee Relationship Management Remuneration and Benefits

Farasis Energy (Ganzhou) Co. Ltd. upholds the principle of equal pay for equal work and has built a compensation and incentive system covering all employ-

Employee Rights Protection ees. The Company has formulated and improved the Performance Management System and adopts reasonable performance target decomposition tools to

ensure that individual performance goals are highly aligned with corporate strategic objectives providing employees with clear work directions and

evaluation criteria. Semi-annual and annual assessments are carried out as scheduled to objectively evaluate employees’ achievement of performance goals

Farasis Energy (Ganzhou) Co. Ltd. always takes the protection of employee rights as the core standardizes the management of recruitment and dismissal providing a basis for salary adjustments and incentives.salary and welfare security working hours and vacations and establishes diverse democratic communication channels to listen to employees and effectively

protect their legitimate rights and interests. To stimulate employee initiative and creativity the Company grants annual salary adjustments to core employees based on actual annual performance

commends outstanding employees and teams with cash bonuses and timely recognizes their contributions and efforts.The Company maintains open channels for performance appeal feedback. If an assessed employee disagrees with the performance evaluation results (scores

Employee Employment and performance grades) he or she may communicate promptly with the direct supervisor (assessor) or department head and state the basis and reasons in

writing. If dissatisfied with the outcome the employee may further file an appeal to the HRBP. Upon receiving an employee appeal the assessor department

Farasis Energy abides by international labor standards and national laws and regulations adheres to the principles of equal employment and equal pay for head or HRBP shall follow up and resolve the matter within 3 working days. The appeal result shall be signed and confirmed by the employee before internal

equal work and is committed to building a legal fair and inclusive employment management system. It has formulated and issued a series of systems such as archiving.the Employee Recruitment Management System and Background Investigation Management System established diversified talent recruitment channels

including internal recruitment social recruitment and campus recruitment and is committed to building a diversified talent team. A recruitment system has

been introduced to ensure the standardization and transparency of recruitment and employment procedures. The Company has formulated and implement-

ed systems including the Procedures for the Prohibition of Forced Labor Policies and Procedures for the Prevention of Child Labor Procedures for the Preven-

tion of Child Labor and Child Labor Remediation and Procedures for the Protection of Underage Workers prohibiting child labor and any form of forced labor

and rejecting any form of discrimination based on gender age race religion pregnancy disability and other factors. Statutory Benefits

During the reporting period no incidents of discrimination harassment child labor or forced labor occurred in the Company.The Company is committed to creating a diverse inclusive and equal workplace environment and has formulated and issued the Human Rights and Diversity Social Insurance and Housing Fund: Full coverage of pension insurance medical insurance unemployment insurance work-related injury

Policy committing to respecting and safeguarding the human rights and labor rights of all employees suppliers customers and other stakeholders. The insurance maternity insurance and housing fund.Company standardizes the signing of employee labor contracts pays labor remuneration on time and pays various social insurances and housing funds in Statutory Holidays: Enjoyment of statutory holidays and paid leave in accordance with national regulations.accordance with the law.During the reporting period the labor contract signing rate of the Company reached 100%.Workplace Environment Non-Statutory Benefits

Living Benefits: Regular free physical examinations; supplementary commercial insurance for employees; comprehensive living conveniences

including staff dormitories staff canteens and scheduled shuttle bus services; a flexible non-fixed working hour system for non-production

posts.Activity Benefits: Various employee activities such as birthday parties retirement ceremonies sports meets team-building activities fun

games and family days.Democratic Management

The Company respects employees’ freedom of association has formulated union-related policy documents such as the Procedures for Freedom of Associa-

tion and Collective Bargaining and signed the Jiangxi Provincial Special Collective Contract for Collective Wage Negotiation Special Collective Contract for

the Special Protection of Female Employees and Special Collective Contract for Labor Safety and Health to ensure that employees can freely organize and

participate in union activities and enjoy the right to collective bargaining.In 2025 the coverage rate of employees under the Company’s trade union or collective bargaining agreements reached 100%.The Company has established an employee grievance and communication mechanism. Employees may report issues related to child labor forced labor

human trafficking discrimination and harassment through channels including email WeChat Work and employee suggestion boxes. All employees are also

encouraged to put forward reasonable suggestions to contribute to the high-quality development of the Company.2025 Environmental Social

Employee Care Training and Development

The Company has established an Employee Care Committee formulated the Employee Care Plan covering all staff built a comprehensive welfare system and The Company has established a talent development system covering all employees including full-time part-time and outsourced staff consisting of four

launched the "Wecare" initiative to ensure the fairness and transparency of the welfare system. Meanwhile the Company has improved the Management modules: management capability improvement professional capability improvement basic capability improvement and learning support. Based on employ-

Measures for the Compassionate Assistance Fund and Procedures for the Labor Protection of Female Employees to care for vulnerable groups including ees’ current situations and development needs the Company flexibly adopts internal and external training methods to systematically deliver management

employees in difficulty disabled employees and retired employees. and professional development programs providing all-round support for employees’ career growth.To safeguard the legitimate rights and special interests of female employees the Company union signed the Special Collective Contract for the Special

Protection of Female Employees with the Company clarifying equal opportunities and equal pay for male and female employees in training ranking and

promotion. The Company ensures proper health care for female employees and provides special protection for those during menstruation pregnancy

childbirth lactation and menopause. In addition the Company union and Women’s Committee conduct irregular internal surveys on the needs of pregnant

and lactating working mothers and women in family hardship. Pregnant female employees are provided with optional afternoon tea and pregnancy meals

and nursing rooms and care stations are available for lactating female employees. The Company also organizes regular physical examinations for female Selecting and Cultivating

employees covering gynecological examinations routine leucorrhea tests and cervical cancer screening and purchases special disease insurance and Talents to Drive Business Growth

supplementary medical insurance.To help employees better balance work and family responsibilities and support the growth of the next generation the Company has held three sessions of the

"Farasis Kids Education Story" program. A total of 245 Farasis kids from 218 employee families have received care packages and incentive grants worth a Themed Series

combined 194000 RMB which has been widely praised by employees’ families. Meanwhile the Company has set up assistance workshops for poverty

alleviation providing jobs for 10 people. Executive Roundtable (Core Executives) Core Executives

Xin Yao Program – Executive Level (Grade 16+) All-staff basic training

Cadre

Development

Xin Hui Program – Director/Manager Level (Grades 11–15) New cadre High-potential

onboarding talent

program development

Xin Chen Program – Supervisor Level (Grades 7–10) program

The Farasis and Farasis Kids incentive Distributed a total People supported in

funds have benefited fund of employment Xin Guang Program (New Generation) – Management Trainees New Generation New Generation Training Camp Incubation Camp

218 employee Farasis families 245 children 194000 yuan 10

Tailored professional skills training for different professional tracks

Professional

Development Functional professional Marketing professional R&D professional Manufacturing professional Operational professional

capability improvement capability improvement capability improvement capability improvement capability improvement

Differentiated training based on job nature

New Employee

Development

Xin Hang Program (White-collar Staff) Xin Hang Program (Blue-collar Staff)

Training Infrastructure

Development Course Lecturer Farasis Training Mentor

Farasis

Academy

Platforms for Systems Management Management Academy

management management

system system operation

Operation Foundation rules2025 Environmental Social

In 2025 Farasis Energy’s talent development closely aligned with corporate strategy and business breakthrough objectives. Driven by the dual engines of Case

refining its distinctive operational system and empowering talent the Company systematically implemented a value-creation project covering all employees

and integrated with end-to-end business processes. Focusing on four pillars — building key talent pipelines upgrading professional competency solidifying

training fundamentals and integrating online learning platforms — the Company strives to forge a resilient and continuously evolving talent force injecting Xin Guang Program – 2025 Management Trainee Camp

core momentum for sustainable development.To systematically nurture new talent the Core Light Program designed a four-dimensional development system for 16 new-generation

trainees covering cultural immersion practical refinement autonomous motivation and long-term connection. The program included an

8-day closed intensive training for cultural integration and role transition 30 days of in-depth production line immersion to build business

foundations and 90 days of cross-departmental rotation to broaden perspectives and strengthen organizational networks. The new-genera-

tion employees not only completed a solid transition from campus to workplace but also demonstrated vitality innovative thinking and high

During the reporting period

potential through more than a dozen self-organized creative activities.Conducted training participants in Online internal added new

sessions total courses trainers internal courses

3183060124718740

Case

Xin Hui Program – High-Potential Manager Class

As a cradle for reserve management talent the Core Radiance Program

delivered 5 specialized training sessions for high-potential managers in 2025.Seventy-five core directors and managers underwent dual development in

leadership refinement and lean practices. Participants developed 174 business

improvement plans and acted as knowledge ambassadors to hold 32 internal

re-training sessions sharing insights with 715 colleagues. Both leadership and

lean practice certification rates exceeded 94%. The Company is committed to building a career development platform full of opportunities and challenges. It has innovatively launched the "Y-Chan-

nel" career development system which offers dual promotion paths — management and professional — for each role category. Employees are encour-

aged to choose suitable development directions based on their interests and capabilities to build core professional competitiveness. Meanwhile the

Company provides a flexible internal transfer mechanism supporting employees to adjust between career tracks as appropriate and helping them

maximize personal value.Management Professional

Track Track

Case

Senior

Leader Specialist

Xin Chen Program – High-Potential Supervisor Class (Session 1)

Manager Senior

To strengthen the frontline management pipeline the Core Star Program Professional

extended training to operational frontlines holding 11 sessions at the Ganzhou "Y-Channel" Career Path

headquarters and Guangzhou bases. Using lean improvement projects as Supervisor Core Professional

practical platforms learners applied "learning-by-doing" to implement 30 Dual career development paths (management and professional) are defined for each job category

improvement measures generating cost-saving and efficiency gains of

approximately 2.455 million yuan. Twelve outstanding talents were added to

the reserve pool realizing true "battlefield training." Experienced Professional

Entry-level Employee

Farasis Energy "Y-Channel" Career Development System2025 Environmental Social

Employee Satisfaction Implementation of Safety Grid Management

The Company conducts regular annual surveys on employee satisfaction and engagement covering dimensions including vitality satisfaction organizational

* A safety grid management team has been established with a basic grid system in place. Management manuals grid indicators risk identifi-

climate compensation career development and training. Based on analytical results the Company carries out reviews and formulates targeted improvement cation monitoring and improvement mechanisms have been initially formulated and will be continuously optimized.measures to stimulate employee vitality and foster a sense of identity and belonging. In 2025 the coverage rate of satisfaction/engagement surveys reached

100% with a comprehensive employee engagement score of 81.4.

In 2025

The coverage rate of corporate The overall Establishment of Base Early Warning Center

employee satisfaction and employee

engagement survey reached engagement score

* Modules including extreme weather early warning hidden danger reporting daily hazard elimination safety announcements and accident

alerts are created to deliver timely warnings to every employee. An EHS learning library is built for full participation.

100%81.4

Occupational Health and Safety Chemical Management

Farasis Energy has established a two-level Work Safety Committee as the highest decision-making body for occupational health and safety with an executive * Formulated chemical-related systems including the Hazardous Chemicals Management Regulations Special Emergency Plan for Hazardous

office under its charge. In accordance with relevant standards the Company has formulated documents including the Occupational Health and Safety Chemicals Leakage On-site Response Plan for Excessive NMP Waste Gas Concentration and Management System for Precursor Chemicals and

Explosive Precursors. Qualified personnel are assigned after training and chemical safety emergency drills are conducted regularly to ensure

Operation Control Procedures and Hazard Identification and Risk Assessment Procedures to standardize occupational health and safety management controllable risks.effectively reduce related risks and has obtained ISO 45001 certification.* Transportation qualifications of suppliers are reviewed and periodically re-examined during supplier qualification and ongoing management.The Company and all bases regularly carry out work safety inspections including monthly safety checks special safety inspections holiday inspections and

* Demonstration hazardous chemical warehouse at Zhenjiang Base: audited and accepted by the Municipal Emergency Management Bureau

daily safety patrols and organize rectification of identified problems. Safety and fire protection facilities are maintained on a regular basis. Workplaces

and awarded the title of "2025 Zhenjiang Industrial Enterprise Hazardous Chemicals Demonstration Warehouse".involving occupational hazards are monitored periodically and employees in such positions receive pre-job on-the-job and off-the-job physical examina-

tions with full notification of occupational hazards. In addition the Company organizes various emergency drills each year including company-level compre-

hensive emergency drills special emergency drills and workshop-level emergency response drills. Company-level emergency evacuation drills are held at

least once annually with full employee coverage.For performance assessment the Company links EHS performance of the CEO and executive management to performance appraisal with deduction items for Cultural Development

major safety and environmental incidents. Group-level and base-level KPIs are established covering work safety and accident rates to effectively measure

EHS management effectiveness. EThe Company regularly carries out a series of safety and health promotion activities as scheduled including the Law of the People's Republic of China on the

Prevention and Control of Occupational Diseases Publicity Week the "Farasis Safety Cup" Knowledge Contest during Work Safety Month on-site first aid

certification training the "Ankang Cup" Knowledge Contest fire skills competitions the Work Safety Law of the People's Republic of China Publicity Week

commendation of excellent cases in the "Snap a Hazard" campaign and safety excellence awards such as Outstanding Safety Individual and Safety Star. All

activities received positive feedback. In 2025 the Company held a total of 633 safety training sessions with 48973 participants.Risk Identification and Management

Each year the Company organizes all departments to conduct hazard identification and risk assessment for identified hazards which are subject to hierarchi- In 2025 the Company organized

cal control and corresponding management measures. Key risks require risk notification personnel training before post assignment clear responsible

safety training sessions Trained

persons protective measures regular safety supervision and special work approval for operations in relevant areas to ensure risks remain under control.

633 48973 person-times.2025 Environmental Social

Community Relationship Management Industrial Ecology Synergy

Farasis Energy attaches great importance to community relationship management. Through solid efforts in rural revitalization and extensive participation in

public welfare activities the Company builds a shared and harmonious coexistence with local communities. We are committed to giving back to society with Supply Chain Management

the fruits of corporate development conveying corporate care and demonstrating responsibility in promoting local prosperity and improving people’s

livelihood. Governance

The Company has established and continuously improved a sustainable supply chain management system. A Responsible Procurement Committee has been

Rural Revitalization set up headed by the director of the Supply Chain Management Center. Led by the Sustainable Development Department a working group composed of procurement quality and other relevant departments carries out supply chain due diligence integrates ESG requirements into supply chain management

and comprehensively strengthens sustainable supply chain governance.The Company actively participates in the "10000 Enterprises Vitalize

10000 Villages" initiative and operates "employment assistance The Company has formulated internal and external policies and systems including the Supplier Code of Conduct Supply Chain Due Diligence Policy and

workshops". To uphold respect for teachers and education and foster Procedures for Responsible Mineral Supply Chain Due Diligence Management integrating environmental social responsibility and business ethics require-

a culture of charity the Company has provided financial aid to ments into supply chain operations to reduce sustainability risks.disadvantaged students in Sanjiang Township for three consecutive

years with a total donation of 157400 yuan. It has purchased agricul-

tural products from poverty-stricken areas to support the fight

against poverty and donated 80 LED street lamps to Qinlong Village

Xijiang Town Huichang County. Strategy

The Company regards supply chain management as a cornerstone of sustainable development and systematically enhances supply chain resilience. Through

diversified sourcing of key materials strategic inventory and a digital supply chain platform it improves responsiveness to market fluctuations and emergent

Social Contribution risks. In building a sustainable supply chain we deepen green procurement by incorporating environmental social and ethical criteria into supplier qualifica-tion and evaluation systems. Committed to a responsible supply chain in strict compliance with international norms the Company ensures the legality and

ethical sourcing of raw materials through due diligence and compliance traceability driving collaborative low-carbon and transparent development across

The Company is committed to fulfilling social responsibilities and has established a volunteer service team to promote the spirit of dedication friendship the supply chain.mutual assistance and progress. It actively participates in public welfare activities at all levels such as visiting and comforting low-income families of women

with two types of cancer and impoverished children offering condolences to children’s welfare institutions paying festival visits to sanitation workers and

lonely elderly people and funding the construction of "Childhood Harbor" centers for left-behind children. To care for left-behind children and improve their

quality of life the Company has supported two left-behind children in Huangsha Village Ganxian District for eight consecutive years with an annual donation

of nearly 10000 yuan. Impact Risk and Opportunity Management

The Company has formulated and issued the Supplier Potential Risk Assessment Form to identify and evaluate suppliers’ potential operational and financial

Case risks on a quarterly basis. Meanwhile it has established a sustainable supply chain management system that incorporates ESG risks such as human rights environmental protection and business ethics into supply chain risk identification and management processes. Conducted annually through supplier self-as-

sessment questionnaires and third-party on-site audits these efforts further enhance the risk resilience of the supply chain.Caring for Children’s Growth Celebrating Children’s Day and Dragon Boat Festival

In 2025 the Party Committee Labor Union Women’s Committee and Care Committee for the Next Generation organized Party members and

volunteers to the "Childhood Harbor" children’s activity center in Xiejiao Village Sanjiang Town Ganzhou Economic and Technological Develop-

ment Zone. A volunteer service activity themed "Caring for Children’s Growth Celebrating Children’s Day and Dragon Boat Festival" and "Rule of

Law Accompanies Growth Heritage Passes to Youth" was held integrating legal education and red culture. Through mini legal lectures and fun

games the spirit of red justice took root in children’s laughter.The "Childhood Harbor" in Xiejiao Village was built with support and funding from Farasis Energy. It provides free after-school tutoring and

psychological counseling for children especially left-behind children bridging the "last mile" of after-school services.2025 Environmental Social

Resilience Management

Quality accounts for 35% of the supplier score with a "one-vote veto" for quality failure. On-site

The Company promptly responds to policy and external market changes and flexibly adjusts supply chain strategies. By strengthening strategic cooperation audits are conducted; for critical suppliers failing the audit the Company dispatches an on-site

with suppliers and adopting a diversified supply chain layout it mitigates risks such as supply chain disruptions and improves supply chain resilience. At the quality support team to rectify non-conformities and improve quality and delivery capabilities. ESG

same time the Company enhances the sustainability capacity of the supply chain by carrying out mineral supply chain due diligence compliance traceability requirements including environmental occupational health and safety information security and

and ESG due diligence so as to better control sustainability risks and build a highly resilient supply chain featuring compliance resilience supply resilience and

In the qualification privacy protection are also integrated into supplier qualification evaluation.operational resilience.assessment phase

* Implement dual or multi-source supply for key materials and establish graded management for multi-point

Diversified Supply introduction of core raw materials to avoid over-reliance on single sources.Chain Layout * Sign strategic cooperation agreements with suppliers covering long-term supply and joint development to

strengthen supply chain synergy.Suppliers are required to countersign documents such as the Supplier Code of Conduct

Conflict-Free Metals Declaration Child Labor-Free Statement and Integrity Commitment to convey

the Company’s compliance and ESG expectations. In accordance with the Supplier Performance

Evaluation Measures and Supplier Quality Assessment Management Rules monthly and annual

* The SPS ultra-large soft-pack technology platform is compatible with ternary LFP solid-state sodium-ion and

Technological performance evaluations are carried out. Suppliers are quantitatively assessed on quality price other battery systems enabling seamless production line switching and shortened transition cycles.and Production delivery and other dimensions and classified into four grades: A B C and D. Differentiated manage-

Flexibility * Bases in Ganzhou Guangzhou and other locations adopt fully flexible production designs adaptable to multiple ment is applied accordingly: Grade A suppliers are eligible for the annual "Excellent Supplier" review

materials and battery forms enhancing delivery flexibility. In the approved with priority qualification and increased purchase share. Grade C and D suppliers are subject to

cooperation phase controlled shipment executive escalation restricted new project qualification and third-party

counseling to improve quality performance.* Establish production bases in Ganzhou (Jiangxi) Zhenjiang (Jiangsu) Guangzhou (Guangdong) and actively

expand overseas capacity with a plant in Turkey. Supply chain coordination ensures stable supply of strategic

Global Business resources and reduces geopolitical and logistics risks.Layout

* Promote localized supply chain development centered on production bases to shorten lead times and improve In addition the Company develops an annual supplier on-site audit plan covering quality system operation process control change management and

responsiveness. The domestic material substitution rate reaches approximately 98%. other elements. Core suppliers are audited at least annually and all suppliers at least once every two years.The Company empowers supply chain partners with its industry expertise by regularly providing quality management capability training. Each year it

selects underperforming core suppliers and launches a core supplier support program. During the reporting period 5 core suppliers received

Supplier Full-Lifecycle Management targeted support. Experience and lessons from these efforts were compiled into a knowledge base to drive overall supplier capability improvement

and smooth implementation of new projects.The Company has issued the Supplier Development and Management Procedures and Procurement Control Procedures to standardize supplier quality

management and procurement processes. It communicates a "zero-defect" quality target to suppliers and evaluates them based on quality system manage-

ment personnel competence product and process quality quality improvement and other dimensions.The audit frequency for core suppliers The audit frequency for all During the reporting period the Company

is no less than suppliers is no less than provided targeted assistance to

Quality System Management 1 a year. 1 every two years. 5 core suppliers

Personnel Competence

Product and Process Quality Sustainable Supply Chain Development

Supplier Evaluation

Dimensions The Company has established a comprehensive sustainable supply chain management system and issued a series of documents including the Sustainable

Quality Improvement Supply Chain Management System and Supply Chain Due Diligence Policy aiming to strengthen the identification and management of ESG risks in the supply

chain prevent risks such as child labor human rights abuse and environmental damage and enhance supply chain resilience.2025 Environmental Social

In terms of mineral supply chain due diligence the Company has formulated and issued the Procedures for Responsible Mineral Supply Chain Due Diligence Equal Treatment of SMEs

Management to identify environmental social responsibility and business ethics risks in the mineral supply chain. Meanwhile it has released the Supplier

Notice and Supplier Code of Conduct explicitly requiring suppliers to provide minerals with compliant origins traceability and no labor-related risks. In the The Company eliminates discriminatory clauses and unfair treatment in procurement bidding supplier qualification and contract performance

Supply Chain Due Diligence Policy the Company commits to advancing compliance with international standards and best practices across all supply chain ensuring that small and medium-sized enterprises (SMEs) enjoy equal business opportunities and negotiating status. It has built digital supply chain

links through risk assessment supplier audits training and improvement mechanisms. It has also issued the Supply Chain Energy Conservation and Carbon platforms such as SAP and SRM and strengthened bidding management and full-lifecycle supplier management by launching an electronic bidding

Reduction Initiative and conducted empowerment training to promote chain-wide decarbonization and compliant operations. In addition the Company has

system and integrating the GIIHG procurement platform. These measures shorten procurement cycles reduce procurement costs guarantee fair

established the Supply Chain Management Grievance and Communication Mechanism emphasizing regular communication with suppliers employees and

participation rights for SMEs and foster a sustainable supply chain ecosystem.other stakeholders.The Company has built a supplier sustainable development evaluation system and independently developed the Supplier Sustainability Management Assess-

ment Form which includes 46 environmental indicators 41 social indicators and 31 governance indicators. Based on total scores suppliers are graded as

Excellent Good or Qualified. The system is designed to strengthen compliance risk management reduce compliance costs and integrate EU regulatory

requirements such as carbon emission management product carbon footprint energy conservation and emission reduction use of recycled materials and Status of Energy Conservation and Emission Reduction in 2025 (Partial)

circular packaging.Indicator Unit 2023 2024 2025

For four consecutive years the Company has conducted supply chain due diligence Number of Suppliers unit 282 263 468

audits on four key mineral raw materials: cobalt lithium nickel and natural graphite and

provided CAP coaching improvement and monitoring for selected suppliers to empow- Cobalt Lithium

er the value chain. For downstream battery cathode and anode material suppliers and Percentage of Target Suppliers That Signed the Supplier Code of Conduct % 100 100 100

midstream refineries audits are conducted in accordance with OECD and EUBR due

diligence standards; for upstream smelters and mines audits follow OECD and IRMA

Key Mineral Raw Materials Percentage of Target Suppliers Assessed for Corporate Social Responsibility % 100 100 100standards covering due diligence management systems internal material control

system assessment human rights environmental protection and other aspects. The

Company has also signed a cooperation agreement with a third party to continue due

Natural Number of Suppliers Covered by Third-Party On-Site Supply Chain Due Diligence Audits unit 19 18 5diligence audits on key suppliers in 2026. Nickel Graphite

EUBR

The downstream battery and positive/negative electrode material suppliers OECD Due Diligence

and the midstream refineries Standards Standards Collaboration with Industry Peers

Farasis Energy joins hands with industry counterparts to drive technological upgrading and standardized development of the sector through in-depth

OECD IRMA participation in industrial standard formulation and diverse industry exchange activities.Upstream smelters and mines

Standards Standards

By the end of 2025 Including

During the reporting period The Company had participated in the National standard Industrial standards Group standards.formulation of standards

The Company trained1 5 employees as internal auditors for supplier sustainability all of whom obtained

certificates upon passing assessment. 32 Items 1Items 2 Items 29Items2025 Environmental Social

Empowering Downstream Scenarios

Publish Group Standards Against the backdrop of the global electrification wave and accelerating

energy transformation power batteries serve as a core driving force and key

enabler. Leveraging profound technological accumulation and sharp market

insights Farasis Energy has launched four distinctive power battery solutions

covering diversified scenarios from high-performance to cost-effective

applications and from short- and medium-range mobility to energy storage

injecting new vitality into the power battery industry.Guidelines for Carbon Footprint Technical Requirements for

Assessment of Silicon-Based Biomass Hard Carbon Anode Sodium-Ion Starter Batteries

Anode Materials Materials for Sodium-Ion Batteries

Ternary High-Nickel + Semi-Solid/All-Solid Solution

Application Scenarios Features

High-end passenger vehicles eVTOL and robotics Energy density of 300–400Wh/kg; future all-solid-state batteries targeted

Technical Specifications for Green Quality Grading and "Leader" to reach 400–750Wh/kg with no upper limit.Battery Passport Guidelines and Low-Carbon Product Evaluation Requirements for

Evaluation of Silicon-Based Silicon-Based Anode Materials

Anode Materials

Ternary Medium-Nickel + Semi-Solid Solution

Application Scenarios Features

Case Long-range electric vehicles hybrids heavy trucks and Mass-produced solution with energy density of 260–290Wh/kg.high-end electric motorcycles

Advancing Technological Innovation to Break New Ground in Battery Safety

I In November 2025 the 15th GGAC Lithium Battery Annual Conference was held in Shenzhen. Dr. Wu Qiang Test Director of Farasis Energy was Lithium Iron Phosphate (LFP) Solution

invited to attend and delivered a keynote speech entitled Intrinsic Safety Solutions and Full-Scenario Applications of High-Performance Pouch Application Scenarios Features

Cells. He shared the Company’s profound expertise and cutting-edge technological achievements in the field of pouch power batteries contrib- Medium- and short-range electric vehicles hybrids buses 1st-gen mass production energy density of 220Wh/kg; 2nd-gen upgraded

uting to the development of the global new energy industry. and energy storage to 240Wh/kg.Dr. Wu Qiang emphasized that Farasis Energy has significantly improved the intrinsic safety of batteries through technological innovation. The

400Wh/kg ternary high-nickel battery not only passes nail penetration tests but also maintains a capacity retention rate of over 89% at a low

temperature of -20°C. Semi-solid batteries easily pass nail penetration tests at both 80% and 100% SOC and withstand a 250°C hot box test. Cost-Competitive Sodium-Ion Alternative Solution

All-solid batteries continue to function normally after extreme tests such as shearing and nail penetration. The SPS ultra-large pouch battery

Application Scenarios Features

pack completed the industry’s first "ten consecutive nail penetrations" thermal runaway test and the 200Ah LFP cell passed multi-directional

Medium- and short-range electric vehicles starter batteries Energy-type sodium-ion batteries with 180Wh/kg; power-type sodium-ion

crushing tests with no leakage fire or explosion.and energy storage batteries feature ultra-high rate performance with capacity retention over

90% at 50C continuous discharge and cycle life exceeding 10000 cycles.

SPS-Driven Multidimensional Innovation

Application Scenarios Features

Passenger vehicles electric aircraft commercial vehicles Industry-first pouch cell module-free battery solution with advantages

ships and all mainstream models; compatible with multiple including long range fast charging high safety low cost flexible adaptation

chemistries to meet current and long-term market needs and iterative upgradability.Innovation and

Transformation

Research and Development

Innovation

Product Quality and Safety

Intelligent Manufacturing and

Lean Management

Product Compliance and Circular

Economy2025 Environmental Social

R&D and Innovation

R&D of Solid-State Batteries

Governance Development of Intrinsically Safe Ternary Semi-Solid Batteries

Through solid-liquid hybrid technology the intrinsic safety of ternary batteries has been significantly improved. Products have passed

The R&D system of Farasis Energy is headed by the Vice President as the primary responsible person. Through collaborative innovation among the stringent safety tests including nail penetration overcharge over-discharge and external short circuit featuring high safety high energy

Advanced Technology Research Institute R&D Institute and Engineering Institute an integrated "research-development-production" management density lightweight design long cycle life strong temperature adaptability and high charge-discharge rate. The technology achieves dual

system has been formed. Relevant systems are continuously improved to ensure R&D activities comply with quality management systems such as ISO upgrades in safety and performance and is applicable to PHEV REV BEV and other fields. It has entered the pilot production stage.

9001 guaranteeing standardized processes and controllable outcomes. The Company has a clear annual KPI assessment system that incorporates

technological achievements and project progress into the performance evaluation of the Vice President and all departments. It also attaches great Development of All-Solid-State Batteries

importance to the development of R&D talents and has issued the Patent Management Measures and Rewards and Punishments for Platform Indepen- The first-generation self-developed sulfide-based all-solid-state batteries have completed large-capacity pouch cell fabrication and a

dent Research Projects effectively stimulating the innovation enthusiasm of R&D personnel. A tiered Core Series training program has been established supporting pilot line is under steady construction laying a solid foundation for industrialization. With high-nickel ternary cathodes and

covering supervisors managers and directors providing a cross-departmental and cross-level communication platform while enabling knowledge high-silicon anodes energy density reaches 400Wh/kg. Platform-upgrading technology enables expansion into humanoid robots eVTOL

sharing facilitating the rapid progress of work. and other emerging fields.The second-generation sulfide-based all-solid-state battery technology has been developed using lithium-rich

manganese-based / high-nickel ternary cathodes and lithium metal anodes raising energy density to 500Wh/kg.R&D System

Development of Long-Cycle High-Loading Silicon Anode Batteries

hn i Core technologies for long-cycle high-loading silicon anode batteries have been mastered with product energy density reaching 350Wh/kg it o erut log ine and excellent comprehensive performance in discharge rate fast charging and low-temperature performance. The products have passed e y ng E multiple national standard safety tests including overcharge over-discharge hot box and short circuit.This technology can be widely applied R & D Institute in high-performance vehicles eVTOL robots drones special machinery and other scenarios laying a solid technical foundation for enhanc-

ing end-user experience.Strategy

Large Pouch Power Battery Solution (SPS)

The Company positions R&D and innovation as the core driver of sustainable development and has adopted a forward-looking technology

strategy:"Launch one generation reserve one generation develop one generation". It simultaneously advances in-depth multiple breakthroughs in core SPS large pouch power battery solution has entered mass production. Based on an innovative module-free pouch architecture it delivers an

technologies and diversified technical routes expansion with a focus on next-generation solid-state battery technologies to achieve revolutionary industry-leading high-integration battery system that improves vehicle space layout efficiency while ensuring safety. It has been successfully

improvements in energy density and safety. The Company also actively expands its energy storage product portfolio to promote efficient storage and extended to the commercial vehicle sector achieving a key zero-to-one breakthrough in commercial vehicle customer cooperation.system-level application of clean energy. Along diversified technical paths it accelerates R&D and industrialization of emerging systems such as

sodium-ion batteries to enhance resource security and cost competitiveness. Guided by market demand the Company systematically transitions

cutting-edge technologies from the lab to industrialization ensuring that technology reserves are timely converted into competitive products.Development of Ultra-Fast-Charging LFP Batteries

Impact Risk and Opportunity Management

Core technologies for ultra-fast-charging LFP batteries have been breakthrough achieving over 12C fast-charging capability. Cells charge

from 10% to 80% SOC in only 7 minutes with cycle life exceeding 3000 times. It combines high discharge rate high energy density high safety

Forward-Looking Technology Reserve and low cost suitable for PHEV REV BEV and energy storage. It has entered the pilot production stage.Development of Energy Storage Battery Products

For grid-side and user-side non-power station energy storage the Company launched a 147kWh liquid-cooled commercial & industrial

integrated system filling the market gap of 100–200kWh products. A standard 215kWh commercial & industrial energy storage cabinet has also Development of Sodium-Ion Batteries

been introduced with distinct differentiated competitive advantages in the sub-500kWh market.For the small-scale energy storage market below 100kWh the M1 residential energy storage system features an ultra-thin design and fast-plug Stepwise breakthroughs have been made in R&D and industrialization of sodium-ion batteries. The first-generation layered-oxide sodium-ion

stacking aligning with market trends. Its flexible design enables rapid switching between LFP and NFPP high and low voltage for different batteries have been industrialized and the second generation is in pilot production.Polyanion-based energy storage batteries feature

scenarios. The sodium-ion wall-mounted energy storage system customized for customers directly meets requirements with the ultra-thin M1 ultra-long cycle life and have passed stringent safety tests including nail penetration and thermal runaway; product development and

design allowing fast configuration and delivery. industrialization have been completed.Polyanion-based high-power batteries achieve 100C ultra-high-rate performance with industrializa-

tion continuously advancing.ng Institute

c t

ced In

Advan

esea

R2025 Environmental Social

Intellectual Property Protection Product Quality and Safety

The Company has established a comprehensive intellectual property (IP) management system integrating technological innovation with IP protection and Governance

forming a R&D-centered organizational model. Patent work is embedded into the entire R&D lifecycle ensuring synchronized progress between IP manage-

ment and technological innovation. Within the R&D process an institutionalized "internal driving force" mechanism encourages R&D teams to proactively

pursue patent protection achieving full-cycle IP coverage from technical conception to commercialization. To incentivize R&D personnel to actively Product quality and safety at Farasis Energy are led by the head of the Quality Center as the primary responsible person. The Company fully implements the

participate in patent applications the Company provides industry-competitive patent rewards fully motivating innovation within the R&D team. IATF 16949 quality management system has formulated the Quality Incentive Management Measurements and fully integrates core quality and safety

indicators into performance appraisal. Meanwhile a three-level core quality objective management system ("Company – Base – Factory") has been

To further enhance IP management efficiency the Company continuously optimizes the entire patent management process significantly improving established. Each year the Quality Center formulates overall objectives based on corporate strategy which are decomposed and implemented level by level

timeliness. By introducing a professional IP talent team and strengthening close collaboration between the IP department and R&D teams the Company to ensure alignment and accountability.ensures high alignment between patent layout and technological innovation. In addition the Company emphasizes the digitalization of IP management

using digital tools to streamline patent search application and maintenance providing strong support for R&D and innovation. In addition the Company has established the Emergency Preparedness and Response Management Procedures. An annual emergency management plan is

developed systematically reviewed and updated regularly and routine drills are conducted to verify effectiveness. Improvement lists are formed and

closed-loop implementation is promoted. As of the end of the reporting period the Ganzhou Base Ganzhou New Energy Base and Zhenjiang Base have all

obtained IATF 16949 and ISO 9001 certifications.Strategy

The Company introduces The Company strengthens

professional talent echelons for close cooperation between the

Farasis Energy has always regarded quality management as the lifeline of corporate development. Centered on the philosophy of "full-lifecycle quality

intellectual property manage- intellectual property team and

management" it has built a closed-loop management system covering four dimensions: quality control R&D manufacturing and supply chain. Through

ment. Improvement the R&D department. internal audits lesson-learning dissemination closed-loop verification special rectification and digital empowerment a quality management system

of Intellectu- covering the entire product lifecycle has been constructed.al Property

Management In 2025 through in-depth collaboration and systematic construction across professional departments the Company achieved remarkable results in key

Efficiency

The Company attaches The Company adopts digital tools dimensions including supply chain assurance project delivery system certification customer satisfaction and process control.importance to the informatiza- to realize efficient operation of

tion construction of intellectual patent retrieval application

property management maintenance and other links.Quality Control

Closed-loop

R&D management Supply

Intellectual Property Risk Prevention and Control system Chain

Manufacturing

The Company strengthens the monitoring of market dynamics The Company establishes and improves the internal management

and competitors to timely grasp industry trends and potential and supervision mechanism to ensure the compliance and legality

risks. of intellectual property rights.Impact Risk and Opportunity Management

The Company has formulated the Risk and Opportunity Control Procedures requiring risk analysis covering product recalls product audits field returns and

repairs complaints scrap and rework. Procedures to mitigate negative risks have been established shifting quality management from passive response to

The Company enhances employees’ legal awareness and risk awareness through intellectual property protection publicity and training. It also proactive prevention. Meanwhile the Quality System Operation Compliance Evaluation and Risk Early Warning Management System has been issued

cooperates with local protection centers professional institutions and industry associations to carry out intellectual property protection seminars mandating regular and dynamic evaluation plans including internal and external audits and special inspections. A comprehensive compliance evaluation is

and build a multi-party collaborative protection network. The Company strives to build an industry-leading intellectual property system protect conducted quarterly with non-conformity rectification tracked regularly. This fully strengthens the adequacy and effectiveness of quality system operation

technological achievements through rigorous mechanisms and continuously fuel the sustainable development of the industry. helps identify and control potential risks in regulatory customer and internal requirements reduces quality incidents and compliance gaps and provides

opportunities for continuous improvement and strategic decision-making thereby enhancing overall quality management and corporate competitiveness.No major liability accidents related to product and service safety or quality occurred during the reporting period.2025 Environmental Social

Full-Lifecycle Quality Management

Non-Conformity and Corrective Actions Product Recall

The Company has systematically built a closed-loop quality and safety management system covering the entire product lifecycle from design and develop-

ment to market service. Starting with new project development quality and safety requirements are integrated upfront into design through the APQP

process and raw material reliability is ensured via supplier hierarchical management. In manufacturing unified process standards and digital process

monitoring guarantee product consistency. For market feedback a rapid response and root-cause analysis mechanism closes the loop on customer

complaints. Combined with internal audits experience accumulation and training a foundation for continuous improvement is established.Supplier Quality Management

Quality Culture Development

To address fierce market competition complex technical challenges and diversified product development needs in the new energy power battery

industry the Company aims to enhance the quality control capability and technical application level of all employees through professional and systematic

external training.Project Development Quality Management

Every September the Company responds to the National Quality Month initiative and builds a group-wide employee-participatory platform for quality

culture promotion. In 2025 with the core theme "Strengthening the Quality Lifeline Deepening the Service Value Chain" six major series of activities were

planned and implemented.Measures Details

Quality Month

Opening Ceremony

Quality System Management

Company-Level QCC

Case Selection & Sharing

First FMEA Practical

Competition

Customer Quality Management TQM

(Total Quality Management)

Training Series

Company-Level Quality

Benchmark Selection

On this basis the Company further established a full-process closed-loop system covering raw material inspection in-process SPC control product

inspection non-conforming product handling test verification problem resolution and product recall. This achieves end-to-end risk control from prevention Lesson-Learned

and control to correction and ensures every link is traceable and improvable. Points Ranking2025 Environmental Social

Intelligent Manufacturing and Lean

Management Production-Supply-Sales System

Governance

Farasis Energy strives to build the Farasis Operation System (FOS). It has established an FOS Leadership Team Execution Team and Advisory Team and

formulated systems including the Continuous Improvement Control Procedures Lean Talent Certification Management Regulations PACK Factory Layout

Planning Management Regulations Identification Management Regulations and OEE Management Regulations. Key KPIs for measuring lean production

performance cover the end-to-end value chain including innovation marketing procurement production and talent development. By standardizing and

optimizing operations and processes across the value chain the Company promotes sustained performance improvement and value creation.Strategy Quality ManagementFOS system

The FOS system takes the lean production module as its core breakthrough

to systematically upgrade manufacturing and operational capabilities. A

modular organization covering all bases has been built integrating seven

sub-modules: site management equipment management production

quality management energy efficiency management safety management

supply-demand balance and logistics management. Supported by "system Office Automation

construction standard setting base empowerment and collaborative

governance" the manufacturing system maintains aligned goals and

coordinated steps in lean transformation.Impact Risk and Opportunity Management

Digital Transformation Support

FOS Improvement

The Company’s core strategy is to build a unified industrial internet platform fully integrating key business systems including PLM ERP MES WCS SRM TMS

QMS and OA. Through efficient system collaboration and data connectivity it has achieved integrated business-finance management coordinated produc-

tion-supply-sales closed-loop quality management and office automation laying a solid digital foundation for high-quality operations and global strategic

layout. Measures Details

R&D

Targeted improvement

based on business pain points

Business-Finance Integration

Closed-loop mechanism driven by

"theoretical training + key FOS projects"

Logistics Management

Supply-Demand Balance

Safety Management

Energy Efficiency Management

Production Quality Management

Equipment Management

Site Management2025 Environmental Social

Product Compliance and Circular

Economy Product Carbon Footprint Management

Farasis Energy strictly adheres to product compliance requirements and integrates the lifecycle green management philosophy into R&D production

recycling and other links actively practicing circular economy. By advancing material traceability optimizing resource efficiency and exploring echelon

utilization of retired batteries the Company is committed to building a resource closed loop from source to end laying a solid foundation for the sustainable The Company has fully integrated product carbon footprint management into product lifecycle management. A third-party institution was engaged to

development of the industrial ecosystem with a strong sense of responsibility. establish a cradle-to-gate lifecycle model for 1kWh power batteries at the Zhenjiang Base in accordance with ISO 14067 and a product carbon footprint

accounting report was compiled. Meanwhile the internationally authoritative LCA software Sphera has been introduced for in-house independent lifecycle

modeling and accounting covering raw material acquisition manufacturing distribution and end-of-life stages. Carbon footprint analysis results are

Product Compliance Management actively incorporated into product R&D and decision-making processes to achieve systematic carbon reduction and enhance green competitiveness.In 2025 specific products of the Company obtained production carbon neutrality certification for the fifth consecutive year.The Company has in-house expertise in mainstream international certifications such as UL IEC and EU battery regulations. It has built a product compliance

management system covering regulatory identification material compliance certification implementation export release carbon footprint assessment and

recycling path planning capable of meeting differentiated market access and technical regulations in the EU North America the Middle East and other

regions providing full-process compliance support for overseas projects from R&D to delivery.In 2025 the Company issued the Product Compliance Manual and carried out two revisions to continuously address regulatory compliance environmental

sustainability and market responsibility. Meanwhile 51 product compliance framework solutions have been delivered with regulatory requirements deeply

integrated at the product planning stage. Lithium battery projects such as EV/LMT have passed EU Battery Regulation compliance assessments by authorita- Resource Recycling and Regeneration

tive certification bodies.Green Solutions

Packaging Material Circularity

The Company focuses on full-lifecycle green solutions and has established a product lifecycle management system driven by regulatory compliance and To standardize the full-process management of raw and packaging materials the Company has formulated the Production and Material Plan Control

oriented toward customer value covering the entire chain from product design use retirement to recycling and regeneration. Environmental impacts at each Procedures as the core management basis for material requisition procurement arrival inspection and warehousing clarifying departmental responsibili-

lifecycle stage are comprehensively evaluated including global warming resource depletion eco-toxicity and other environmental indicators. ties and operational standards to ensure standardized and traceable control processes. All production bases adopt recyclable packaging solutions and have

established a sound monitoring mechanism for packaging material recovery rates to ensure efficient recycling and reuse.Hazardous Substance Control Packaging development strictly follows the Finished Product Packaging Development and Change Management Regulations and Raw Material Packaging

Development and Change Management Regulations aiming to reduce virgin material consumption increase recycling and recycled content and lower

landfill/incineration of packaging waste. Lightweight design reduces material procurement costs space and load losses in transportation and disposal costs

The Company has established a complete hazardous substance control system including the Hazardous Substance Compliance Management Process and of waste packaging. During lightweight and circular transformation packaging protection performance including cushioning moisture-proofing and impact

Product Compliance Manual. It strictly abides by international environmental directives such as the EU Battery Regulation RoHS REACH and POPs and resistance is maintained to meet safety requirements for dangerous goods transportation of lithium-ion batteries. Common recyclable packaging types

actively implements the Extended Producer Responsibility (EPR) system. Full-lifecycle and full-chain hazardous substance control is applied to products include: recyclable plastic crates recyclable blister packaging recyclable calcium plastic boxes recyclable sleeve packs recyclable pallet boxes modular

covering all levels from raw materials components and modules to finished battery systems and running through the entire process of hazardous substance recyclable aluminum profile packaging and recyclable material racks.identification assessment verification declaration and archiving. It applies synchronously to all externally sold products including cells modules PACK

systems BMS and integrated components ensuring all products meet hazardous substance regulatory requirements in each sales market.Battery Circularity

The Company focuses on developing efficient and environmentally friendly battery recycling solutions to achieve high material recovery rates long cycle life

and high stability of recycled materials. For high-value cell raw materials the Company has reached agreements with suppliers for scrap resale remelting and

reuse such as cathode main powder and NMP. Material loss is reduced by controlling raw material dimensions including copper foil aluminum foil and

aluminum plastic film. Monthly material loss rate analysis is conducted to optimize and monitor excessive loss and gradually refine the BOM.The Company adds a "Waste Disposal" label (with trash can icon) and a "Recyclable" label (with circular arrows) to battery packs. Standardized labeling guides

consumers to correctly identify and dispose of batteries into dedicated recycling streams facilitating identification classification and resource utilization by

the recycling industry chain and improving material recovery efficiency.2025 Environmental Social

Appendix

Litigation and Violations

ESG Performance Table Indicator Unit 2023 2024 2025

Concluded corruption lawsuits against the Company case 0 0 0

Operational Performance Reports from whistleblowing procedures case 1 0 0

Confirmed corruption incidents case 1 1 1

Indicator Unit 2023 2024 2025

Operating Revenue 100 million RMB 164.36 116.80 91.17

Board Governance

Annual Tax Payment 100 million RMB 0.71 1.55 1.21

Indicator Unit 2023 2024 2025

Operating Costs 100 million RMB 157.60 103.58 82.80

Board meetings held time 17 10 10

Total Assets 100 million RMB 301.45 266.27 228.02

Average attendance rate of board meetings % 100 100 100

Shareholders’ meetings held time 3 2 5

Party Building Number of directors person 11 11 14

Indicator Unit 2023 2024 2025 Number of independent directors person 4 4 5

Number of General Party Branches unit 1 1 1 Number of non-independent directors person 7 7 9

Number of Party Branches Established unit 4 4 5

Independent directors with industry background person 2 2 2

Total Number of Party Members person 99 107 113

Directors with legal expertise person 1 1 1

New Party Members in the Year person 30 25 6

Independent directors with risk management background person 3 3 3

Number of Party Member Activities time 23 26 27

Independent directors with accounting/finance background person 2 2 2

Attendance of Party Member Activities person-time 93 107 100

Average tenure of board members year 3 3 32025 Environmental Social

Environmental Compliance Management Emissions and Waste

Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025

Environmental pollution incidents case 0 0 0 Total waste generated ton 14723.38 9736.61 11868.84

Material administrative penalties for environmental violations 10000 RMB 0 0 0 Total waste recycled and reused ton / / 7567.80

Penalties for environmental law violations case 0 0 0

Proportion of waste recycled and reused % / / 64

Environmental protection investment 10000 RMB 382.73 263.70 254.77

Total waste recycled per million revenue ton / million RMB / / 0.83

Investment in energy-saving renovation projects 10000 RMB 451.07 634.59 308.65

Total general waste ton 7922.69 9296.40 8594.57

Percentage of employees with environmental training % 100 100 100

General waste intensity ton / million RMB 0.48 0.80 0.94

Percentage of sites with environmental risk assessment % 100 100 100

Total hazardous waste ton 715.91 440.21 524.9

Number of National Green Factories unit 0 1 2

Hazardous waste intensity ton / million RMB 0.04 0.04 0.06

Greenhouse Gas Emissions1 Total wastewater discharge1 ton 279046 237879 294997

Indicator Unit 2023 2024 2025 Wastewater discharge intensity ton / million RMB 16.98 20.37 32.36

Total GHG emissions (Scope 1 + Scope 2) tCO?e 371657.34 289082.48 278171.25 BOD emissions ton / / 0.03

GHG emissions per unit energy consumption (Scope 1+2) tCO?e / / 2.90 COD emissions ton / / 6.50

Scope 1 GHG emissions tCO?e 4328.28 3679.09 5113.202 NH?-N emissions ton / / 0.75

Direct GHG emissions per million revenue (Scope 1) tCO?e / / 0.56 SS emissions ton / / 2.00

Scope 2 GHG emissions (location-based) tCO?e 367329.06 285403.39 273058.05

TP emissions ton / / 0.05

Scope 2 GHG emissions (market-based) tCO?e 246221.5 265853.66 221150.66

TN emissions ton / / 2.87

Indirect GHG emissions per million revenue (Scope 2) tCO?e / / 24.26

Percentage of wastewater treated by municipal WWTP % 100 100 100

Scope 3 GHG emissions tCO?e 987510.47 841536.69 9387013

Waste gas emissions2 10000 m3 85717.35 48311.90 105722.31

Other indirect GHG emissions per million revenue (Scope 3) tCO?e / / 102.96

VOCs emissions kg 1342.60 6350.40 5478.54

GHG emission intensity tCO?e / million revenue 22.61 24.75 30.51

Direct reduction in Scope 1 GHG emissions tCO?e 1952.20 649.19 -1434.11 NOX emissions kg 104.60 24.60 64.74

Direct reduction in Scope 2 GHG emissions tCO?e 51176.84 81925.67 12345.34 PM emissions kg 104.00 26.20 76

GHG offsets (Scope 1 & 2) tCO?e / / 46062.62 SOX emissions kg 793.10 186.60 0.49

Direct GHG offsets (Scope 1) tCO?e / / 12950 Waste gas emission intensity 10000 m3 / million RMB 5.22 4.14 11.6

Indirect GHG offsets (Scope 2) tCO?e / / 33112.62

Carbon emission reduction from clean energy generation tCO?e / / 18359.89

*Data Notes:

Data Notes： 2024 wastewater scope: Ganzhou Base Ganzhou New Energy Base Zhenjiang Base; 2025 adds Guangzhou Base.

1 Carbon inventory has not yet been conducted at the Guangzhou Base and Ganzhou New Energy Base in 2025. Therefore GHG emission data for 2023 2024 and 2025 in this table only cover the Ganzhou 22024 waste gas scope: Ganzhou Base Zhenjiang Base; 2025 adds Ganzhou New Energy Base. Guangzhou Base is excluded as related facilities are not yet completed.

Base and Zhenjiang Base. Some indicators in the table are newly added and were not counted in 2023 and 2024 hence marked as "/".

2The increase in Scope 1 GHG emissions is mainly due to the addition of R428A and heptafluoropropane fire extinguishers at the Zhenjiang Base which have high global warming potential (GWP) values

leading to a rise in total emissions.

3The increase in Scope 3 GHG emissions is mainly attributed to the update of the carbon emission factor for road freight transportation which was revised from 0.049 kgCO?e/t·km (originally from CPCD) to

0.2157 kgCO?e/t·km [from GHG S3.4 & 3.9 China Road Transport Emission Factors (2024)] representing a 4.4-fold increase over the original factor.2025 Environmental Social

Energy Management Employee Responsibilities

Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025

Total energy consumption tce 93987 82222.28 96059.58 Total employees person 6554 6463 5080

Total electricity consumption kWh 457102902.40 409656250.40 442515454.20 Male employees person 4762 4742 3704

PV power generation kWh 37129897.40 37035604.40 34602127.20 Female employees person 1792 1721 1376

Purchased electricity kWh 419973005 372620646 407913327 Management employees person 641 652 693

Steam consumption ton 445204.2 350596.71 397928.39 Operational employees person 5913 5811 4387

Natural gas consumption m3 69560 2685293 2434040.90 ≤30 years old person 2889 2621 1946

Energy intensity tce / million RMB 5.72 7.04 10.54 31–40 years old person 3003 3113 2519

41–50 years old person 590 654 549

Renewable energy consumption tce 6408.38 8329.33 14463.03

>50 years old person 72 75 66

Renewable energy ratio % 58 57 41

PhD & above person 38 38 41

Total green power traded MWh / / 83079.12

Master’s degree person 293 283 269

Green power certificates traded piece / / 62406

Bachelor’s degree person 1539 1517 1259

Other qualifications person 4684 4625 3511

R&D personnel person 1483 1406 1203

Water Resource Management

New hires during the year person 5724 2343 3066

Indicator Unit 2023 2024 2025

Total water intake ton 2032662.75 1647060 1864008

Diversity & Inclusion

Water intensity ton / million RMB 123.67 141.01 204.46

Indicator Unit 2023 2024 2025

Female ratio in all management positions % 13.26 10.63 15.69

Packaging Materials Female ratio in junior management % 17.48 16.23 18.22

Female ratio in revenue-generating functions % 30 31.31 29.73

Indicator Unit 2023 2024 2025

Female ratio in R&D positions % 15.49 16 15.71

Total packaging usage piece 214508 171505 297586

Ethnic minority employees person / / 108

Reusable packaging usage piece 70879 40877 112961 Disabled employees person 50 50 41

Reusable packaging ratio1 % 33.04 23.83 37.96 Labor dispatch employees person / / 3622025 Environmental Social

Occupational Health and Safety

Employee Training & Development

Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025

Total training hours hour 73999 80257.9 30561 Workdays Lost Due to Work-Related Injuries day / / 412

Average training hours per employee hour 11.29 12.71 6

Number of Work-Related Accidents case 13 6 12

Average training hours – male hour 11.94 13.50 6.7

Average training hours – female hour 9.57 10.55 4.1 Number of Injured Employees person 13 6 13

Average training hours – management hour 10.96 22.65 9

Number of Occupational Disease Cases person 0 0 0

Average training hours – general staff hour 11.33 12.20 5.6

Annual training coverage % 53.27 100 83.9 Occupational Disease Incidence % 0 0 0

Training coverage – male % 54.20 74.2 89.7

Training coverage – female % 50.78 65.6 68.4 Investment in Work Injury Insurance & Work Safety Liability Insurance 10000 RMB / / 328.99

Training coverage – management % 68.49 92.6 31.7

Coverage of Work Injury & Safety Insurance % / / 100

Training coverage – general staff % 51.62 70.1 92.2

Individual performance appraisal participation rate % / / 100 Work Safety Investment 10000 RMB / / 1351.45

Safety Drills Held session 42 105 219

Employee Rights Protection Safety Training Sessions session 631 653 633

Indicator Unit 2023 2024 2025 Participants in Safety Training1 person 11474 13175 48973

Employee Satisfaction / Engagement Score score 77.20 78.20 81.40

Safety Training Coverage % 100 100 100

Employee Satisfaction Survey Coverage % 100 100 100

Labor Contract Signing Rate % 100 100 100 Percentage of Sites with Employee Health & Safety Risk Assessment % 100 100 100

Social Insurance Coverage Rate % 100 100 100

Supplier Participation in Safety Training person-time 1762 3822 1557

Occupational Health Examination Coverage % 100 100 100

Employee Coverage under Formal Collective % 100 100 100 Supplier Safety Training Coverage % 100 100 100

Agreements on Working Conditions

Employee Coverage by Elected Employee Represen- % 100 100 100 Data Notes:

Compared with 2024 the Zhenzhen Base conducted online safety awareness training for all employees in 2025 resulting in a significant increase in the number of training participants

tatives compared with 2024.Percentage of Employees Trained on Diversity % 100 100 100

Anti-Discrimination and Anti-Harassment2025 Environmental Social

Supplier Management Scientific Research and Professional Competence

Indicator Unit 2023 2024 2025 Indicator Unit2023 2023 2024 2025

1 R&D Investment 100 million RMB 7.49 5.82 6.31Total Number of Suppliers unit 282 263 460

R&D Investment as Percentage of Revenue % 4.56 4.98 6.92

Percentage of Target Suppliers That Signed Supplier Code of Conduct % 100 100 100

Number of Core Technical Personnel person 11 11 10

Percentage of Target Suppliers Assessed for CSR % 100 100 100 Cumulative Granted Patents piece 304 429 589

Cumulative Patent Applications piece 503 721 906

Number of Suppliers Undergoing On-Site Supply Chain ESG Audits unit / / 5

Patents Granted in the Year piece 91 136 160

Percentage of Suppliers with Contracts Including Environmental Labor & Human Rights Clauses % 100 100 100 Patent Applications Filed in the Year piece 152 236 185

Number of Software Copyrights piece / / 6

Percentage of Suppliers Certified with Quality Management Systems % 100 100 100

Invention Patent Applications Filed During the Reporting Period piece / / 61

Percentage of Audited Suppliers Participating in Improvement or Capacity-Building % 100 100 100

Valid Patents in Force During the Reporting Period piece / / 589

Supplier ESG Training Sessions session / / 1 Invention Patents Applied in Core Business piece / / 128

Number of Suppliers Participating in ESG Training unit / / 24

Customer Service

Number of Suppliers Undergoing Mineral Supply Chain Due Diligence Audits unit 19 18 5

Indicator Unit 2023 2024 2025

Total Number of Key Suppliers unit 226 233 180

Customer Satisfaction score 95.3 96.5 94

Total Customer Complaints case 987 686 623

Number of Suppliers Classified as High ESG Risk unit 0 0 0

Customer Complaint Closure Rate % 95.85 90.38 97.27

Data Notes：

1 The statistical scope for indirect procurement suppliers covers those with an annual procurement value exceeding 10 million yuan.2025 Environmental Social

Indicator Index

Information Security

ndex of Topics in the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock

Exchange No.14 – Sustainable Development Reports (for Trial Implementation)

Indicator Unit 2023 2024 2025

Number of Information Security Incidents case 4 0 0 Dimension No. Topic Corresponding CorrespondingClauses Chapter

Number of Customer Information Leakage Incidents case 0 0 0

Losses from Violations of Relevant Laws and Regulations 10000 RMB 0 0 0

Percentage of Operating Sites with TISAX AL2 Certification % / / 100

Information Security Emergency Drills session / / 2

Data Security & Customer Privacy Protection Training Sessions session / / 5

Rural Revitalization

Indicator Unit 2023 2024 2025

Total Investment in Rural Revitalization 10000 RMB 109 129 133.96

Number of People Assisted with Employment person 12 12 10

Community Public Welfare

Indicator Unit 2023 2024 2025

Total Donations 10000 RMB 15.15 34.11 22.12

Number of Employee Volunteers person 15 25 28

Volunteer Activities Organized session 9 12 15

Volunteer Participation person-time 72 89 92

Total Volunteer Service Hours hour 28 45 482025 Environmental Social

AA1000 Independent Assurance Statement Independence and Assurance capability

1. Eruid and Farasis Energy are completely independent organizations. professional qualifications and AA1000 official auditor qualifications

None of the members of the Eruid assurance team have any business possessing many years of auditing and ESG consulting experience. All

relationships with the reporting organization its directors or senior relevant personnel have received professional training in AA1000

management or department managers that would create a conflict of Assurance Standard v3 ("AA1000AS v3") of AccountAbility GRI

To Farasis Energy (Ganzhou) Co. Ltd.: interest. The Eruid assurance team conducted this assurance Standards (GSSB) the International Financial Reporting Sustainability

Eruid (Shanghai) Inspection & Certification Co. Ltd. ("Eruid") is commissioned by Farasis Energy Technology (Ganzhou) Co. Ltd. ("Farasis Energy") to independently and neutrally. Disclosure Standards (ISSB) Sustainability Reporting Guidelines of the

conduct an independent limited assurance engagement on the environmental social and corporate governance information and data disclosed in 2. Eruid is accredited by AccountAbility. Our assurance team consists of Shanghai and Shenzhen Stock Exchange and ESG Reporting Code of

the Farasis Energy 2025 Environmental Social and Governance Report ("ESG report") and to present the assurance findings and conclusions to the experienced professionals in the industry. Team members hold ACCA the Hong Kong Stock Exchange among other relevant standards and

readers and stakeholders of the ESG report in the form of issuing an independent assurance statement. guidelines.Limitation

Assurance Scope

1. This review used a sampling method to verify relevant information 3. Eruid could not comment on the report's descriptions beliefs

1.The scope of this assurance engagement is the management practic- 3.The assurance work does not include the data and information of therefore it did not cover all information disclosed in the report; inferences wishes expectations future plans or other forward-look-

es performance and related information of the Company in terms of suppliers partners or any other third parties of Farasis Energy.

2. Eruid did not review the sustainable development performance ing information; only the relevant factual evidence supporting these environment social and governance (ESG) disclosed in the ESG report 4.The information and data disclosed in the ESG report have already

from January 1 2025 to December 31 2025. indicators disclosed in the report but only confirmed that the sustain-

views was verified;

been assuranced or assured by an independent third party and not able development performance indicators had clear data sources 4. In future reviews Eruid will based on the principle of continuous

2.Assuring the Farasis Energy ESG report covers the data and informa- re-assurance in this engagement. through interviews and verification of factual evidence; improvement further focus on improving the report's organization of

tion of Farasis Energy and its subsidiaries. sustainable development information disclosure and management.Assurance Conclusion

Assurance Standard

1. Based on the information provided by Farasis Energy and the 2. Regarding the principles of inclusion substance responsiveness

Eruid adopted the AA1000AS v3 Type 1 moderate level assurance to evaluate the reporting organization's adherence to the four AA1000 Account- sampled tests Sustainable Development and ESG report of Farasis and impact included in AA1000AS v3 the detailed audit results are as

Ability Principles (AA1000AP 2018) — Inclusivity Materiality Responsiveness and Impact (the "Four Principles"). Energy does not contain any material misrepresentations. follows:

Assurance Information Source Principle Evaluation

Report Name: Farasis Energy 2025 Environmental Social and Governance Report Farasis Energy identifies and reaches key stakeholders and obtains feedback through multi-channel communica-

Inclusivity

Source: Farasis Energy tion. In 2025 the company comprehensively considered stakeholder concerns during the issue identification process and combined questionnaire surveys and communication mechanisms to form issue inputs.Assurance Responsibility and Statement Farasis Energy conducted a dual importance analysis identifying 25 ESG issues and assessing and ranking them Materiality from the perspectives of impact risk and opportunity. The substantive identification system is relatively

complete.

1.Farasis Energy's management is responsible for the preparation of within the defined scope of Farasis Energy ESG report in accordance

the report and the authenticity accuracy and completeness of its with AA1000AS v3 and has provided a conclusion based on its

content and for establishing an internal control system to support the assurance work. Except for providing independent assurance on the Responsiveness Farasis Energy has established corresponding management and disclosure mechanisms around the key issues

collection and disclosure of ESG data. identified responding to stakeholder concerns through systems performance indicators and continuous verified facts corresponding to these conclusions and issuing this improvement measures. The report discloses key performance information including greenhouse gas emissions

2.Subject to the limitations of the assurance scope Eruid has conduct- Statement of Opinion Eruid assumes no legal or other liability for any energy and resource utilization employee health and safety and data security and establishes corresponding

ed an independent limited assurance engagement on the matters inquiries for any other purpose nor to any other person reading this management systems and control measures.Independent Assurance Statement of Opinion.Farasis Energy has established an ESG governance and risk management system to identify and manage the

Assurance Schedule and Work Impact major environmental and social impacts of its operations and to monitor these impacts through key indicators.The report discloses information on the impacts risks and opportunities related to climate change resource

In order to gather evidence relevant to forming our conclusions we utilization and supply chain management.4.Through interviews and document review identify key stakeholders

performed the following procedures: understand their expectations and concerns and the reporting

1.Develop an assurance plan clearly defining key resource require- organization's communication mechanisms and response methods;

ments assurance scope tasks timeline and expected deliverables; 5.Select key ESG information from the report implement analytical

2.Through interviews and document review understand the reporting procedures and sampling verification to assess the reasonableness of general manager：

organization's management system policies and operational mecha- the relevant data and its consistency with the disclosed content; Assurance Provider: Eruid (Shanghai) Inspection & Certification Co. Ltd.nisms regarding Environmental Social and Governance (ESG) matters; 6.Verify the inclusion materiality responsiveness and impact principles Assurance Period: April 2026

3.Review the significant matters disclosed in the report and related in the company's report and its related AA1000 to confirm the

supporting evidence to assess their consistency with actual manage- appropriateness of this statement; Assurance Team: Eruid Sustainability Assurance Team

ment practices; 7.Perform other procedures deemed necessary by Eruid.

行情