Stock Code 688646 2024 Wuhan YIFI Laser Co. Ltd.Environmental Social and Governance ReportCONTENTS Message from the Chairman 02 01 Converge: 03 Guiding Light: Appendix 92Fortifying Foundations Green Empowerment Key Performance Table 92 About YIFI Laser 04 Indicators Index 96Enhancing ESG Governance 30 Environmental Compliance Management 64 Independent Assurance Statement 100 Company Overview 04 Reinforcing Corporate Governance 35 Addressing Climate Change 64 About This Report 104 Development Milestones 06 Upholding Business Ethics 39 Strengthening Energy Management 68 Products and Solutions 08 Protecting Information Security 40 Optimizing Resource Utilization 69 Business Operation Layout 12 Promoting Digital and Intelligent Operations 44 Compliance with Three Wastes Discharge 70 Ecosystem Protection 71 Laser-Inspired 2024 14 Key Highlights in 2024 14 Key Events in 2024 16 Brilliance: Sustain: Core Certifications and Honors 18 02 Crafting Excellence 04 Upholding Responsibility Innovation-Driven Development 48 Employee Rights and Benefits 74 Annual Theme Comprehensive Quality Management 53 Employee Training and Development 76 Building a Chain-Integrated Innovation Ecosystem Optimizing Customer Service 57 Workplace Safety and Health 80 Accelerating High-Quality Development of Laser Responsible Supply Chain 59 Employee Care and Engagement 85 Industry 20 Industrial Synergy: Ecosystem Development 20 Industry Cooperation and Development 87 Innovation Pipeline: Tech Commercialization 23 Social Welfare and Charity 91 Capital Momentum: Strategic Growth 25 Talent Catalyst: Value Ignition 27Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Message from the Chairman the intelligent upgrading of downstream industries. Furthermore since our IPO in 2023 we leveraged capital markets to catalyze business-capital integration through strategic investments M&A and incubations. While consolidating competitive advantage and market position in the lithium battery equipment sector we pursue the "laser + intelligent equipment" strategy expanding into emerging fields such as semiconductors and PV perovskites. We are continuously extending our footprint across the smart manufacturing value chain accelerating dimensional and sectoral expansion to erect competitive moats and fortify sustainable growth resilience.Innovation-Driven Unleashing New Productivity. Technological innovation is embedded in YIFI Laser's strategic framework and serves as the core driver of sustainable value creation. We actively seize opportunities in the laser and new energy battery application industries relying on the Engineering Technology Research Institute to build a collaborative innovation platform with upstream and downstream enterprises in the industrial chain research institutes and universities constructing a "chain-style integrated innovation ecosystem." Guided by practical applications we achieved breakthroughs and industrial transformation of new technologies processes and equipment. In the field of cylindrical battery equipment we have built a comprehensive leading edge in core technologies mass production equipment and market applications.We have accumulated over 420 patent applications related to this area including 52 authorized invention patents. Moreover we have launched a full range of cylindrical full-tab battery mass production applications effectively meeting the market demand for accelerated mass production of cylindrical batteries. In 2024 R&D expenses accounted for 13.39% of revenue with R&D personnel comprising 43% of total employees. We undertook multiple national and provincial key projects developed laser tempering and closed-loop monitoring system for welding quality launched a high-speed magnetic levitation full-tab large cylindrical battery assembly line and officially released a semiconductor AMHS system along with three core devices promoting the digital and intelligent flexible and green development of the industry.Low-Carbon Operations Empowering Green Development. Under the national carbon peaking and carbon neutrality strategy we not only embed low-carbon principles into our own operations but also strive to become the key enabler driving our customers' green transformation.We actively address climate change by identifying climate-related risks and opportunities promoting the use of clean energy and optimizing production processes to enhance energy efficiency reduce pollution emissions and minimize our environmental footprint. Meanwhile we Chairman of YIFI Laser Wu Xuan implement information and intelligent management vigorously promoting a paperless "green office" to deepen environmental awareness among all employees. Crucially we regard green technological innovation as a powerful tool to empower our customers. We continuously invest resources in clean technologies successfully transforming innovative achievements into a series of high-performance green intelligent manufacturing In 2024 global temperatures exceeded the pre-industrial baseline by 1.5℃ f or the first time marking the hottest year on record. The equipment and solutions. These advancements significantly improve our customers' energy efficiency and reduce their carbon emission intensity frequent occurrence of extreme weather events underscores the urgent need to address climate change. Against the backdrop of a jointly forging a more competitive new paradigm of green intelligent manufacturing.profound reshaping of the global economic landscape sustainable development is not merely a topic of the times but also an urgent action that concerns the future of humanity. The United Nations Climate Change Conference continues to call upon countries to fulfill Uniting Efforts Sustaining Social Responsibility. We adhere to a people-oriented approach regarding employees as our most precious asset. We their climate responsibilities while China's carbon peaking and carbon neutrality strategy provides profound guidance for socio- prioritize employee rights protection by establishing a diversified and clearly structured career development system that empowers individuals.economic transformation. Aligned with regulatory developments the Shanghai Stock Exchange Shenzhen Stock Exchange and Beijing We create a fair just united mutually supportive safe and orderly workplace ecosystem fostering corporate unity and unleashing talent value.Stock Exchange have also successively issued guidelines for listed companies on sustainability reporting. As a premium equipment Meanwhile rooted in transparency and mutual trust we deepen communication with customers suppliers government bodies and all sectors manufacturer positioned at the core of the energy revolution and a key enabler of the new energy value chain we recognize our pivotal of society actively participating in industry collaboration and social welfare initiatives. We earnestly fulfill our responsibilities by supporting areas role in advancing the energy transition. We are committed to innovating green technologies to empower low-carbon development such as education health and poverty alleviation through charitable donations ensuring that the fruits of development benefit the community.within the industry. We published the 2024 ESG (Environmental Social and Governance) report. This report is not only a declaration of We are committed to achieving a win-win situation between commercial and social values.our responsibilities but also marks a new starting point where YIFI Laser integrates the ESG philosophy deeply into strategic DNA and management framework. Looking ahead to 2025 which coincides with the 20th anniversary of YIFI Laser's establishment two decades of diligent efforts have forged professional expertise. As we embark on the future journey we carry the weighty expectations of the times. We will consistently uphold the Growing Resiliently Strengthening Governance Foundations. We reformed the organizational structure continuously optimizing philosophy of upholding fundamental principles while pursuing innovation. Through continuous technological advancements we aim to perfect our governance framework and internal control system to ensure scientific transparent and efficient decision-making. We conducted integrated layout across the entire industrial chain encompassing "structural components - battery cells - module/PACK assembly - recycling/ a comprehensive review of ESG management framework and established a company-specific ESG governance architecture facilitating dismantling equipment - intelligent logistics equipment and systems as well as warehousing" thereby driving new momentum in intelligent the ongoing improvement of corporate strategy business operations and management models. Moreover we accelerated the manufacturing. We will lead development with a "new ecosystem" and forge ahead with "new breakthroughs." We will continuously deepen integration of information technology and manufacturing technology. During the reporting period we obtained AAA Certification for the the sustainable development management system strengthen communication and cooperation with stakeholders and remain steadfast in our Integration of Informatization and Industrialization Management System the highest level under China's national standard GB/T 23001. pursuit of harmonious coexistence among the enterprise society and the environment. We look forward to joining hands with partners from all While advancing digitalization and intelligent capabilities we deliver intelligent products and intelligent manufacturing solutions driving walks of life to jointly build a resilient green future characterized by shared creation and mutual benefit! 02 03Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility About YIFI Laser Company OverviewWuhan YIFI Laser Co. Ltd. (Stock Code: 688646） founded in 2005 in China Optics Valley is a Chinese government-certifiedhigh-tech enterprise specializing in intelligent precision laser processing equipment. Headquartered inWuhan the company operates multiple R&D and manufacturing bases across China .Driven by continuous innovation ecosystem YlFl LASER has built a comprehensive technology and prod.uct system focused on precision laser processing technology and intelligent manufacturing equipment.The company has made significant breakthroughs and upgrades across the entire value chain - fromlasers and laser systems to automated laser workstations production lines and turnkey intelligent manu.facturing solutions.YIFl LASER’s core offerings include inteligent laser systems automated production lines for lithium bat.tery cell and module/pack assembly solar cell manufacturing eauipment and inteligent logistics solutions. These technologies are widely applied across various sectors including new energy battery manu-facturing photovoltaics semiconductors home appliances prefabricated buildings automotive compo.nents as well as the food and pharmaceutical industries.Corporate Culture Mission Core Values Dedicated to laser innovation Integrity pioneering intelligent equip- Excellence ment upgrades Innovation Business Vision Collaboration Philosophy Becoming a world-class Customer-centric intelligent manufacturing Quality-assured equipment supplier Innovation-driven Service-supported 04 05Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Development Milestones Since 2024 Building Platform Systems Since its establishment in 2005 YIFI Laser has started from laser R&D to overcoming high-reflectivity metal welding challenges progressively 2015-2018 Upgrading the construction of YIFI Laser Engineering Technology achieving breakthroughs in full-tab technology and developing a series of cylindrical full-tab battery equipment and expanding into new energy Industrial Synergistic Research Institute battery welding auto parts kitchenware prefabricated buildings intelligent logistics and semiconductor applications. In 2023 YIFI Laser went public on the STAR Market reinforcing commitment to core business growth and global market expansion driving rapid development from Development Constructed a collaborative innovation platform for the industrial technological innovation to industrial diversification. chain Launched construction of the "YIFI Laser Intelligent Manufacturing Base in East China" Invested in and established Ecotion setting up a R&D and manufacturing base in South China Delivered the world's first automatic assembly line Key Milestones for cylindrical tabless cells Strategically acquired New Cohesion venturing into the smart 2011-2014 logistics industry Technological Iteration and Upgrading Self-developed the first-generation flexible five- axis welding station Accredited as a National-level Industrial Design Center Established Southern China Branch and fully advanced "Laser Comprehensively achieved intelligent upgrades + Automation" Appointed as the leader of the laser application industrial chain for various cell and module and PACK production for new energy batteries in Hubei Province 2005-2010 Established R&D partnership with the Guangzhou Institute lines Product R&D and Entrepreneurship of Industrial Technology Chinese Academy of Sciences for Jointly established the Laser Application and Premium Equipment Launched automatic assembly lines for household lithium battery equipment Innovation Hub with Wuhan Industrial Innovation Development YIFI Laser was established in Wuhan China Optics Valley appliances kitchenware green buildings and Institute Launched various lithium battery laser welding assembly automotive components Self-developed pulsed lasers achieved mass production pilot lines Recognized as "Hubei Province Enterprise Won the title of National High-Tech Enterprise Broke through the "laser vertical welding" technology for Technology Center" Established the Laser Application Test Center constantly prismatic batteries and pioneered automated assembly lines expanding the innovative application fields of laser for prismatic batteries 2019-2023 technology Achieved key technology breakthroughs in cylindrical tabless Capital Operation and Growth Overcame technical challenges in multi-tab/full-tab battery batteries and pioneered the automated assembly line for processing and equipment and launched a standalone cylindrical tabless batteries Listed on the STAR Market welding machine for cylindrical full-tab batteries The 360ppm cylindrical full-tab battery automatic production line has been rolled off Began the construction of the Intelligent Manufacturing Headquarters Base in Central China Mass-produced and delivered intelligent assembly lines for cylindrical full-tab cells Awarded as a National Enterprise of Specialized Refined Distinctive and Innovative which received national key support Honored on the "Science and Technology Innovation China Leading Technology List" Selected for the National Manufacturing Industry Single Champion Product List 06 07Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Products and Solutions Core Components of Laser Systems Laser Intelligent Equipment Lasers Laser Welding Machines Laser Welding Machines Laser Welding System Modules Laser Weld Monitoring Systems for In-Weld Quality Control Automatic Laser Welding Production Lines Intelligent Manufacturing Solutions for Battery Cells Warehouse and Intelligent Logistics System Cylindrical Tabless Battery Cell Assembly Lines 50 - 360 PPM Liquid Injection Battery Cell Assembly Winding / Stacking Coating Slurry Preparation Formation and Grading Battery Cell FinishedGoods Warehouse Module / Pack Assembly Prismatic Battery Cell Assembly Lines 6 - 36 PPM Multi-Tab Winding Type Multi-Tab Stacking Type Dual-Pole Full-Tab Stacking Type Critical Processes in Battery Cell Assembly Single-Pole Group Dual-Pole Group Dual-Pole Full-Tab Quad-Pole Group Blade Structure Tab Forming | Tape Sticking | Cell Tray Loading | Can Insertion | Current Collector Welding | Lid Closing Welding | Keyhole Welding | Electrolyte Injection | Sealing Welding | Sealing Pin Welding | Helium Leak Detection | Laser Cleaning | Sleeving | Laser Coding 08 09Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility EPC-Level Smart Logistics System Solutions Battery System Assembly Solutions Intelligent Logistics System Solution Provider for All Industries Laser Welding Station Cylindrical Battery Module Mass Production Equipment Solution Planning Core Equipment Software System Project Implementation Site Survey and Planning Production Line Automation Equipment MES System Equipment Installation Pre-sales Solution Design Intelligent Logistics Scheduling System LMS/WMS Equipment Commissioning Detailed Implementation Plan Intelligent Warehousing System WCS/ACS Software Debugging Prismatic Battery Module Mass Pouch Battery Module Mass Production Equipment Production Equipment AMHS System CIM AMHS Systems for Semiconductor Factory Manufacturing Software Systems Utilizing Digital Twin Technology for Visualized Operations in Digital Factories Factory Visualization Production Line Visualization Equipment Visualization Equipment Structure Visualization Line-side Stocker High-speed Vertical Overhead Hoist Transport Lift Tower (OHT) System MES Software LES/WMS Software WCS Software PLC Control Programs Energy Management Software Standard Equipment Interfaces Core Equipment: Stacker Cranes Standardized Component Design Modular Installation Design Conveyor Lines Robotic Workstations 10 11Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Business Operation Layout Industrial Presence YIFI Laser is committed to becoming a world-class supplier of intelligent manufacturing equipment and is unwavering in pursuit of a globalization YIFI Laser has established production bases and R&D centers in multiple locations across China forming a multi-base layout covering key regions strategy. Domestically we have established a comprehensive industrial presence centered around our headquarters in Wuhan Optics Valley including Central China East China and South China. Meanwhile we actively expand overseas markets through cooperation with internationally forming a "1+4" production base presence that includes the Central China Base the East China Base Wuxi New Cohesion and Zhuhai Ecotion renowned customers participation in international exhibitions and establishment of overseas marketing and after-sales systems to enhance to provide customers with integrated services encompassing R&D production and sales. We place great emphasis on expanding into overseas global market influence. With the strategy of domestic multi-base layout and active overseas expansion we are gradually building an efficient and markets. By establishing overseas subsidiaries setting up sales and service agencies in collaboration with local enterprises and participating in collaborative global business operation system.overseas exhibitions we are expanding the brand influence and actively accelerating localization efforts. Currently we have achieved product sales in multiple countries and regions including the UK Germany Brazil India Japan South Korea Turkey and Vietnam. In April 2025 we established a subsidiary in Singapore designated as our overseas operational headquarters. By adopting a localized cooperation approach we aim to further expand overseas market business provide global customers with higher-quality products and services and build dedicated service teams for key overseas strategic clients. This will enhance the international market competitiveness and service capabilities.Headquarters Wuhan · China Optics Valley YIFI Laser Intelligent Ezhou Hubei Jiangsu YIFI Laser Zhenjiang Jiangsu South China Sea Islands New Cohesion Wuxi Jiangsu Dongguan YIFI Laser Dongguan Guangdong Ecotion Zhuhai Guangdong Note: This background map is for illustration only and does not represent a real map. 12 13Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Laser-Inspired 2024 Financial Performance Governance Performance Key Highlights in 2024 Proportion of independent directors 33.33 % Revenue RMB 692.07 million Inquiry/complaint resolution rate 100 % Total assets RMB 2822.62 million Interactive platform responses 104 Net profit attributable to shareholders of the parent Company Investor hotline sessionsRMB 24.33 million 74 Tax paid RMB 18.73 million 3 Shareholders' meetings (15 proposals) Amount paid for share repurchases 7 Board meetings (36 proposals) (excluding transaction fees) RMB 83.07 million 4 Supervisory Committee meetings (17 proposals) Cash dividend payout amount RMB 43.24 million Note: Refers to the dividends distributed in 2024 for the FY 2023 and 1H 2024 Social Performance Environmental Performance R&D investment RMB 92.64 million R&D investment as % of revenue 13.39 % Environmental violations and penalties 0 Case(s) Proportion of R&D personnel 43 % Environmental investment RMB 1.18 million Valid invention patents 103 Self-consumed PV electricity 958.33 MWh Intellectual property rights held 633 Total GHG emissions (Scope 1+2) 1095.03 tCO2e Total training hours 8350.75 Hour(s) GHG emissions intensity (Scope 1+2) 0.016 tCO2e/RMB 10k revenue Participation in industry summits and exhibitions 24 Times Coverage rate of occupational health examinations 100 % Social welfare investment RMB 0.17 million 14 15Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Key Events in 2024 In 2024 YIFI Laser expanded its business scope by acquiring New Cohesion optimizing multi-site layout across China while actively exploring both In December domestic and overseas markets deepening cooperation with numerous well-known enterprises and reaching strategic agreements. Continuously YIFI Laser launched a closed-loop investing in technological innovation we launched a series of new products including a high-speed magnetic levitation full-tab large cylindrical monitoring system for welding battery assembly line a high-speed prismatic battery assembly line a fully automatic production line for prismatic battery CTP modules a new quality type of cell structure component assembly line sodium-ion battery intelligent equipment and solid-state/semi-solid-state battery intelligent equipment further strengthening market competitiveness. We have comprehensively upgraded our innovation system by establishing the Engineering Technology Research Institute which has constructed a new-type innovation platform integrating "R&D innovation - engineering transformation - analysis and testing." In addition we officially initiated the digital transformation and AAA Certification for the Integration of Informatization and Industrialization Management Systems standardization work. This marks the beginning of a new phase in the Company's In July digital management upgrade. By building a new group-wide project operation and management platform we aim to enhance the integration of The overseas cylindrical full-tab cell assembly business and finance refine project cost management increase project schedule transparency and strengthen group-level operation and control mass production line project rolled off capabilities.In February In April Implemented the first phase of YIFI Laser pioneered the high-speed magnetic the share repurchase plan levitation full-tab large-cylindrical battery production line YIFI Laser Engineering Technology Research Institute was completed and put into operation In October The 2GWh intelligent integrated system project for solid-state batteries by New Cohesion successfully passed acceptance The mass production line for 46-series large cylindrical batteries entered large-scale delivery YIFI Laser officially established a strategic cooper- ation with Songshan Lake Materials Laboratory In November YIFI Laser was honored the Top 50 Private Enterprises in Technological Innovation in Wuhan In June New Cohesion launched semiconductor YIFI Laser reached a strategic M&A with New Cohesion AMHS system 16 17逸Wu飞ha激n Y光IFI 2La0s2e4r C年o.度 LtdE. S20G24报 ES告G Report Me董ss事age长 fr致om辞 the A走bo进ut逸 YI飞FI L激as光er Lase光r-I启nsp2ir0e2d4 2024 An年nu度al 专Th题eme 聚光，C筑on牢ver发ge展: 根基 耀光，B锻rill造ian智ce造: 匠心 循光G，ui赋din能g 绿Lig色ht:发 展 续光，S绵us延ta责in:任 担当 Ap附pe录ndix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Core Certifications and Honors Leveraging its abundant intellectual property rights achievements in technical standards and a powerful innovation platform YIFI Laser has been honored with multiple awards including the "2024 Outstanding Brand in Lithium Battery Equipment" and the "2024 TOP 30 Intelligent Manufacturing Enterprises in New Energy". These accolades fully demonstrate its remarkable strength and industry influence in the field of lithium battery equipment.Annual Corporate Honors Enterprise Qualifications Best Influential Enterprise Made in China Hidden Champion Top 100 Brands in China's Energy Storage Leaders Alliance Made in China Hidden New Energy Storage Champion Committee Energy Storage Leaders Alliance 2024 Outstanding Most Promising Enterprises National Manufacturing Single National "Specialized Refined Distinctive Sci-Tech Innovation China Leading Supplier Award Starting Point Gold Tripod Award - 2024 for Growth ChampionSodium Battery Equipment Company and Innovative" Little Giant Enterprise Technologies List Gotion High-Tech the 14th Supplier Conference China Automotive Power Battery Ministry of Industry and Information Technology and 2025 Strategic Release Committee Industry Innovation Alliance Starting Point Sodium Battery of the People's Republic of China China Ministry of Industry and Information Technology of the People's Republic of China China Association for Science and TechnologyFederation of Industrial Economics Annual Innovation Annual Product Trust Top 30 of China Intelligent Enterprise (Equipment) Enterprise (Equipment) Manufacturing Companies in the New Top 50 Private Enterprises in National Industrial Design Center National Intellectual Property Energy Industry 2024 (GGII) Technological Innovation in Wuhan Ministry of Industry and Information Advantage Enterprise The 9th International Summit on Power Battery The 9th International Summit on Power Battery Applications (CBIS2024) Committee Applications (CBIS2024) Committee Wuhan Federation of Industry and Commerce Technology of the People's Republic of China National Intellectual Property Administration GGII Consulting High-Tech Lithium 2024 Intelligent 2024 China Laser Star Rising Award - Best High-Tech Golden Globe Award - Warehouse Manufacturing Pioneer Influential Enterprise in the Laser Industry Logistics System Integrator (New Cohesion) High-Tech Research China Laser Star Rising Awards Committee Shenzhen High-Tech Consulting Co. Ltd."Hubei Premium" Certification Hubei Brand Promotion Mechanism 18 19Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Annual Theme Policy-based debt-to-equity swap industrial capital Humanoid robots PV perovskite equipment premium cooperative financial institutions investment and M&A of listed semiconductor equipment AI intelligence advanced companies applications Building a Chain-Integrated Innovation Ecosystem Capital Platform Industrialization Platform Accelerating High-Quality Development of Laser Industry Precision mechanical components Intelligent control Driven by the carbon peaking and neutrality strategy YIFI Laser actively constructed a collaborative innovation system featuring systems the "integration of four chains" (industrial chain innovation chain capital chain and talent chain). This construction is supported Mechanical standard electronic parts by the policy guidance outlined in Hubei Province's Implementation Opinions on Promoting the High-Quality Development New energy Intelligent Premium of the Laser Industry. As the leading enterprise of Hubei Province's "New Energy Battery Laser Application Industrial Chain" batteriesinformation systems Equipment we promote the industrialization of leading technologies in the new energy advanced battery and laser industries facilitate Industry Chain New energy vehiclesSimulation & digital the innovation iteration and intelligent upgrading of advanced industries such as new energy batteries combined with laser twins Laser Application & Laser application Advanced and premium technology aiming to establish a demonstration model for the integrated development of the "laser + new energy" industry in Application equipment Light source materials Premium Equipment Hubei Province. Innovation Hub Fields PV perovskite Optical devices Pan-semiconductor Laser systems Optoelectronic Humanoid robots Industrial Synergy: Ecosystem Development Industry ChainCNC/software Hardware supporting Other components YIFI Laser has formed a full-chain service capability encompassing "technological innovation - process verification - testing and and standard parts certification - industrial incubation" through the model of "industry chain leader guidance + platform support + ecosystem co- construction." This approach drives the coordinated development of enterprises along the upstream and downstream of the Innovation Platform industrial chain. R&D Center + Engineering Transformation Center + Testing and Verification Center Laser + Optoelectronic devices + Process technology + AI intelligence Engineering + Pilot verification + Testing and training CNAS Lab + SGS Lab + UL Lab Collaborative Innovation Platform YIFI Laser Collaborative Innovation Platform for New Energy Battery Laser Applications We have established a novel innovation platform integrating "R&D innovation - engineering transformation - analysis and Furthermore to promote technological innovation and equipment development in cylindrical full-tab batteries in 2023 in testing" relying on the Engineering Technology Research Institute. This platform comprises 23 specialized laboratories including accordance with the Interim Measures for the Construction and Management of Enterprise Joint Innovation Centers of WIIDI we advanced laser components laser systems laser processes intelligent software intelligent equipment and digital twins. actively implemented all tasks and requirements outlined in the Construction Plan for the WIIDI - YIFI Laser Joint Innovation Center These laboratories are equipped with over 200 sets of advanced equipment such as industrial CT scanners scanning electron on Advanced Battery Intelligent Manufacturing Technologies and Equipment. Focusing on establishing an open information platform microscopes X-ray diffractometers beam quality analyzers spectrophotometers and electrical performance testers enabling for cylindrical full-tab battery design manufacturing in-process detection and digital management we have closely collaborated the execution of 119 analysis and testing projects related to mechanical structure material composition optical performance with various industry stakeholders including cylindrical full-tab battery manufacturers R&D institutions equipment producers electrical performance safety and other aspects. A full-industry-chain pilot-scale verification platform has also been built and system integrators. We have also engaged in extensive cooperation and exchanges with relevant domestic and international encompassing battery structural components cell pilot-scale verification battery pack application and battery recycling and enterprises universities and research institutions to jointly study and address common challenges in battery production processes.disassembly. Aligned with industrial transformation and upgrading requirements we provide services to meet the innovation This collaborative approach enables comprehensive sharing of technologies and experiences ultimately driving technological R&D engineering verification testing certification performance testing and achievement transformation of the new energy advancement across the entire industry.battery industry chain. Through targeted technological breakthroughs we enhance innovation efficiency increase the value of achievement transformation and empower high-quality development of the industry. 2021 Advanced application industrial clusters + next- generation overtaking opportunities Upstream industry chain aggregation + industrial chain collaborative innovationWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Joint Innovation Ecosystem Public Service Platform Guided by a practical application-oriented approach YIFI Laser collaborates with multiple stakeholders including YIFI Laser is actively promoting the construction of a public verification and testing platform. We have registered and established universities research institutions suppliers partners customers and the government focusing on areas such as Wuhan Yizhixincheng Technology Testing Co. Ltd. which is equipped with advanced verification and testing equipment and premium intelligent equipment new energy batteries and PV perovskite to build a joint innovation ecosystem. Building a professional technical service team to carry out testing services. These services encompass a wide range of tests including on this foundation by integrating high-quality resources such as the "Huazhong University of Science and Technology microscopic crystal structure analysis material composition analysis optical device system analysis and electrical performance Joint Laboratory for Intelligent Measurement of Laser Processing Quality" and the "Hubei Optical Fiber Laser Industry testing. The coverage spans multiple fields such as new energy batteries semiconductors electronics automotive and hardware Technology Innovation Consortium" we have developed a complete innovation chain spanning from fundamental industries. Currently Wuhan Yizhixincheng Technology Testing Co. Ltd. is actively advancing the preparatory work for accreditation research to engineering applications. We have formed in-depth collaborations with research institutions including the as a third-party public technology service platform - CNAS laboratory (China National Accreditation Service for Conformity Wuhan Industrial Innovation Development Institute (WIIDI) the Institute of Semiconductors of the Chinese Academy Assessment). Simultaneously we are planning to build additional authoritative certification capabilities such as CMA and TüV.of Sciences and the Songshan Lake Materials Laboratory. Furthermore we have partnered with universities such In the future we will serve the verification and testing requirements of enterprises along the supply chain providing more as Huazhong University of Science and Technology and Jiangsu University to conduct industry-academia-research professional and scientific technical and product support for R&D and innovation within the industrial chain.collaborative projects facilitating efficient commercialization of technological achievements.Suppliers Partners Innovation Pipeline: Tech Commercialization YIFI Laser collaborates with upstream and downstream enterprises universities and research institutes to address key common Universities Joint Innovation Customers and Research Ecosystem technologies in advanced industries like new energy batteries and premium intelligent equipment driving comprehensive Institutions innovation breakthroughs and application transformations in new energy battery equipment and laser application technologies.Subsidiaries Government Collaborative Innovation Achievements Joint Innovation Ecosystem During the reporting period YIFI Laser has successfully commercialized technologies including system integration high-speed Additionally we have jointly launched the "Laser Application and Premium Equipment Innovation Hub" with WIIDI. flying operations real-time sensing system fusion laser conditioning system development and laser processing surface treatment.The Innovation Hub will focus on four key sectors including next-generation intelligent battery equipment industrial We also partnered with Huazhong Agricultural University to conduct R&D on the "Key Technologies and Applications of Cylindrical humanoid robots third-generation premium solar cell equipment and advanced semiconductor packaging/testing Full-Tab Batteries Intelligent Welding Systems" project. We also collaborated with Huazhong University of Science and Technology and intelligent logistics. The Hub aims to establish a sustainable development model of "industry-defining demand to develop the "Key Technologies of Scanning Spot Circular Laser Welding for Busbars in Large Cylindrical Lithium Battery technology-responding solutions and capital-secured implementation." Through pivotal projects that connect Modules" project accelerating the transformation of scientific and technological achievements.segmented industrial chains it will bring together key universities research institutions industrial chain enterprises and investment organizations to converge the three critical elements of innovation industry and capital. This "tri-chain integration" will cultivate new quality productive forces and create a virtuous innovation ecosystem where "demand drives innovation technology propels industry and capital accelerates commercialization." The first benchmark project of the innovation hub—Hubei Jingchu Humanoid Robot Co. Ltd. jointly invested in and established by Wuyi Technology (the YIFI Laser & WIIDI Joint Venture) the Wuchang District Government and an authoritative academician team specializing in robotics—has officially launched. 22 23Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Collaborative Innovation Outlook Capital Momentum: Strategic Growth Leveraging the collaborative innovation platform YIFI Laser will join forces with ecosystem partners to address industry- wide challenges such as intelligent laser control systems. Guided by the "application-oriented" innovation philosophy we Since its listing YIFI Laser has leveraged capital market platforms to promote the deep integration of business and capital will accelerate the commercialization of new processes technologies and products from laboratory to market establish through investments M&A and incubation. Focusing on the core business we systematically explore potential value across a multidisciplinary cross-technology collaborative innovation mechanism to facilitate multidimensional incubation and upstream and downstream industrial chains as well as related sectors in optoelectronics premium intelligent equipment commercialization across products technologies markets and capital. This approach will drive the industrialization of new energy batteries pan-semiconductor technologies and other emerging industrial sectors. By strategically investing in laser-based intelligent manufacturing technology ecosystems. high-quality resources and implementing efficient integration we inject new growth momentum achieving dual-driven development through organic expansion and external acquisitions.New Energy Equipment Specialize in laser welding and assembly line solutions for battery cells battery components and PV products Strategic Acquisition of New Cohesion New Energy Vehicles & Specialize in complete production line solutions for battery module and PACK Energy Storage YIFI Laser actively expanded into intelligent logistics and semiconductor sectors. During the reporting period we completed assembly and disassembly in new energy vehicles and energy storage systems a strategic acquisition of 51% stake in New Cohesion. Following the acquisition both parties successively held business integration work meetings and New Cohesion strategic partner conferences to actively promote in-depth business Specialize in precision laser welding and intelligent manufacturing solutions for integration. We aim to fully leverage the synergistic benefits between intelligent logistics and equipment thereby driving 3C Electronics the 3C electronics industry the advancement of intelligent manufacturing towards premium intelligent and green development.Specialize in laser welding intelligent manufacturing and laser cleaning solutions General Automation for hydrogen fuel cells hardware and household appliances medical military Case Study YIFI Laser and New Cohesion Hold Business Integration Work Meeting and related industries From July 8th to 9th 2024 YIFI Laser and its subsidiary New Cohesion held a business integration work meeting. The Commercial Application Fields meeting aimed to accelerate the integration of their businesses with the goal of achieving "1+1>2." Both management teams provided detailed introductions to their companies' development status strategic plans business growth and operational Technology Capital management systems. They engaged in comprehensive discussions on market marketing products technology supply chain and corporate management. The meeting enhanced mutual understanding between the management and business teams of both companies facilitated communication channels and established an integration work mechanism laying a solid foundation for collaborative growth.Product Market Industrial Incubation Technology Innovation Achievement Transformation Industrialization Industrial Incubation Promotion Business Integration Work Meeting 24 25Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Completion and Commissioning of Intelligent Manufacturing Bases During the reporting period the second phase of the Central China Intelligent Manufacturing Base and East China Intelligent Manufacturing Base as well as the Zhuhai Ecotion Base has been put into operation. The Wuhan Headquarters Base project and IPO-funded projects are progressing as planned. In 2025 we will continue to strengthen the management of IPO-funded projects steadily and with quality assurance promoting the The Battery Show India The Battery Show North America completion and implementation of these projects to achieve full operational status at the earliest opportunity thereby meeting customer demands for product diversification and enhanced East China Intelligent Manufacturing Base Talent Catalyst: Value Ignition performance.As an enterprise recognized by the Ministry of Industry and Information Technology as a "National Manufacturing Single Champion Product" and a National Key Supported Professionalization Refinement Specialization and Innovation "Little Giant" enterprise YIFI Laser faces structural contradictions where traditional professional title evaluation standards are overly academic and fail to meet the core skill requirements of manufacturing enterprises. These contradictions include "evaluation standards lagging behind technological iterations review cycles not matching enterprise innovation rhythms regional policy differences exacerbating talent mobility barriers and severe talent siphon phenomenon". We have repeatedly proposed at government- organized private enterprise forums enterprise development innovation seminars and enterprise difficulty research meetings granting champion enterprises and specialized refined distinctive and innovative "Little Giant" enterprises the leading role in Wuhan Headquarters Base Project Central China Intelligent Manufacturing Base Zhuhai Ecotion Base professional title evaluation. These efforts helped promote the introduction of Several Measures on Innovating the Professional Title Evaluation Mechanism for Specialized Refined Distinctive and Innovative Enterprises and Manufacturing Single Champion Advancing Globalization Strategy Enterprises in Hubei Province (Trial). The policy clearly supports specialized refined distinctive and innovative enterprises and manufacturing single champion enterprises in conducting independent evaluations. It allows enterprises to recommend talents YIFI Laser is actively expanding into overseas markets by participating in international exhibitions and striving to build a for direct application for senior professional titles grants enterprises the right to evaluate and use talents and stimulates talent globally connected service network to create an international business ecosystem. In April 2025 we established a wholly innovation and creativity.owned subsidiary in Singapore designated as our overseas operational headquarters. By adopting a localized cooperation approach we aim to further expand overseas market business provide global customers with higher-quality products and services and build dedicated service teams for key overseas top-tier clients. This will enhance the international market competitiveness and service capabilities.The Battery Show Europe Hannover Messe International Industrial Exhibition (Germany) Hubei Provincial Department of Human Resources and Social Security and Department of Economy and Information Technology Jointly Issued Several Measures for Innovating the Professional Title Evaluation Mechanism for Hubei's 'Specialized Refined Distinctive and Innovative' and Manufacturing Single Champion Enterprises 26 2701 Converge: Fortifying Foundations Guided by the sustainable development principles YIFI Laser continuously optimizes the governance structure and decision-making processes to enhance operational efficiency. We are committed to ensuring timely and accurate information disclosure strengthening investor communication reinforcing risk and compliance management and deeply integrating Party building with corporate governance. Meanwhile we maintain high standards of business ethics strictly adhering to anti-corruption and anti-unfair competition regulations to foster a healthy orderly business environment. Additionally we have established a comprehensive privacy protection and information security system to safeguard customer data while advancing our digital and intelligent transformation strategy to accelerate high-quality development. 30 Enhancing ESG Governance 35 Reinforcing Corporate Governance 39 Upholding Business Ethics 40 Protecting Information Security 44 Promoting Digital and Intelligent Operations Contributing to the UN SDGsWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Enhancing ESG Governance Management Layer Organizational Structure Responsibilities Collect relevant ESG indicator information and submit work objective pro- gress and major initiatives according to the annual ESG report preparation YIFI Laser embodies the concept of sustainable development placing significant importance on the concerns and demands of various requirements.stakeholders. We continuously strengthen communication and collaboration with all stakeholders actively listening to their opinions and Execution Units and Various Functional Establish and improve special management methods related to ESG.suggestions to enhance the scientific and transparent decision-making for sustainable development. Work Coordination Departments and Implement management measures related to various ESG issues.Bodies Subsidiaries Communicate with stakeholders according to departmental responsibili-ties and respond to their ESG needs.Execution Layer Cooperate in ESG information collection and submit relevant information.ESG Governance Structure Participate in the ESG promotion training and other activities.Handle other ESG-related work responsibilities.We have established a robust ESG governance structure and management system. The ESG governance framework consists of three layers: the decision-making layer the management layer and the execution layer. The decision-making layer comprises the Board of Directors and the Strategy and Development Committee. The management layer is the ESG Management Working Group with the Securities Affairs Department Stakeholder Engagement serving as the lead unit. This group is composed of the competent leaders of various departments and ESG liaison officers from both YIFI Laser and its subsidiaries. The execution layer comprises various functional departments and subsidiaries. In accordance with the Detailed Rules for YIFI Laser places great emphasis on the rights interests and demands of stakeholders. We actively maintain close communication with all the Work of the Strategy and Development Committee and the ESG Management System the decision-making layer is primarily responsible for stakeholders fully listen to their opinions and feedback and implement a series of measures to respond to the issues they are concerned about reviewing and approving the ESG strategic plans and management systems as well as supervising the implementation of ESG-related matters. The and continuously make improvements. We are committed to deeply integrating the concept of sustainable development into production management layer is tasked with coordinating and implementing the ESG management work and regularly reporting the work progress to the operations and strategic planning sparing no effort in driving the realization of the high-quality development goals.Strategy and Development Committee. The execution layer is responsible for collaborating on and implementing specific ESG tasks to facilitate the realization of the ESG strategy.Stakeholder Expectations and Demands Communication and Response Management Layer Organizational Structure Responsibilities Excellent corporate governance Strictly adhering to the Board Structure and Governance Earning briefings Review and approve the Company's ESG development strategies and Robust risk management Leadership and objectives major issues management structure and management Compliant information disclosure Information disclosure Decision-Making Body Board of Directors systems. Investors and Protecting investor rights Actively answering investor calls Review and approve the ESG reports. Shareholders Receiving and hosting research visits Promote the integration of ESG concepts into the Company's overall strategy and development plans. Conduct research on and propose Compliant operation Conducting field visits research and inspections recommendations for the long-term strategic development plans. Sustainable development management Regular reporting and communication Conduct research on and propose recommendations for ESG-related Green and low-carbon operations Proactively accepting supervision matters including ESG governance strategies and objectives and ESG- Protecting the ecological environment Environmental compliance management Strategy and related reports. Government and Upholding business ethics Practicing low-carbon production Decision-Making Layer Research and Guidance Development Identify assess and propose recommendations for ESG-related risks and Regulators Protecting employees' rights and interests Lawful and compliant employmentBody Committee opportunities. Participating in social welfare Participating in social welfare Conduct research on and propose recommendations for other significant matters affecting the company's development or related to ESG.Inspect and supervise the implementation and execution of the above Improving product quality matters and report to the Board of Directors. High-quality products and services Customer follow-up visits Handle other matters authorized by the Board of Directors. Customer privacy protection Promptly addressing customer issues R&D and innovation Establishing long-term cooperative partnerships Formulate the Company's ESG strategic plans and ESG-related systems Digital transformation Promoting scientific research innovation and digital-Customers and policies. Intelligence transformation Implement ESG strategies and responsibilities. Improving intellectual property protection Establish an ESG work reporting mechanism and regularly report work Management Body ESG Management progress to the Strategy and Development Committee.Working Group Understand the demands opinions and suggestions of stakeholders. Stable and secure cooperative relationships Organize the formulation and implementation of strategies and measures Achieving honesty and mutual benefit Contractual compliance Management Layer to address the ESG impacts risks and opportunities. Promoting industry development and techno- Cooperation with integrity Prepare and issue ESG reports. Suppliers logical progress Conducting supplier communication and training Handle other ESG-related matters. 30 31Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Stakeholder Expectations and Demands Communication and Response Contributing to the UN SDGs Protecting employees' legitimate rights and interests Employee rights and interests protection Value career development and training Improving communication channels SDGs Responsible Actions of YIFI Laser Chapter Reference Competitive compensation and benefits Enhancing employee training and skills Employees Ensuring occupational health and safety Democratic communication Balancing work and life Employee activities Protecting safe production Establish a scientific compensation and benefits system implement equity incentives and performance bonuses to increase employee income. Sustain: Upholding Responsibility Promoting Employment Localized employment Serving community development Organizing volunteer and public welfare Community Engaging in public welfare charity and rural revitali- Actively communicating and exchange with the community zation Rural assistance activities Initiate the construction of a safety standardization system obtain and maintain Building a collaborative innovation platform ISO 45001 Occupational Health and Safety Management System certification.Conducting industry cooperation Participating in industry standard compilation Promote 5S management and visual safety programs.Promoting industry-academia research Attending industry summits and forums Organize multiple company-level and departmental safety emergency drills Sustain: Upholding Responsibility Partners Participating in industry-related associations achieving 100% coverage of safety training.Participating in industry-academia research Provide safety equipment and psychological support services.Organize diverse cultural and sports activities.Materiality Topic Analysis Advance the "Nestling Eagle - Flying Eagle - Golden Eagle" three-stage talent Through communicating with stakeholders and in accordance with the Self-Regulatory Guidelines No. 14 for Companies Listed on Shanghai Stock cultivation project. Employee training coverage reached 100%. Total training hours: 8350.75 hours Sustain: Upholding Responsibility Exchange—Sustainability Report (For Trial Implementation) and the GRI Sustainability Reporting Standards we have adopted the principle of (average 8.35 hours per employee).double materiality. Combining expert opinions and referencing excellent industry practice cases we have optimized and adjusted the approach to identify topics that hold both financial and impact materiality. This enables us to manage relevant topics more targeted and provide detailed responses in this report ensuring the continuous advancement of the sustainability goals. Promote gender equality and job diversity gradually increasing the proportion of female employees. Sustain: Upholding Responsibility Double Materiality Matrix High 01 Information security and privacy protection Employee rights and benefits Install water-saving devices and conduct regular inspections of faucets and 02 01 R&D and innovation valves to reduce water waste caused by leaks and drips. Guiding Light: Green Empowerment 03 Promoting industry development 02 High-quality products and services 04 Intellectual property protection 03 Workplace Safety and Health 05 Anti-corruption 04 Responsible supply chain 06 Green and low-carbon products Comprehensively promote the use of clean energy for power generation 05 Employee training and development installing PV power stations on factory rooftops. 07 Employee care Energy management 2 distributed PV projects with a combined installed capacity of 1258.48 KW. 06 During the reporting period self-consumed 958329.29 kWh of PV-generated Guiding Light: Green Empowerment 08 Environmental compliance management 07 Addressing climate change electricity accounting for 77.53% of the total PV power generation. 09 Resource utilization and circular economy Install EV charging stations within the park/industrial zone. 10 Rural revitalization and social contributions Environmental Topic Social Topic Optimize the organizational structure through a combination of internal and Governance Topic external recruitment to drive highly suitable job placements. 01 Internal control and risk management Adopt diverse employment forms (full-time outsourced employee hourly) with Sustain: Upholding Responsibility 01 Emission and waste management 02 Compliant operation competitive compensation. 02 Ecosystem and biodiversity conservation 03 Improving the ESG governance framework Low-materiality Topic 04 Digital transformation Medium-materiality Topic High-materiality Topic Low Low Financial Materiality High 3233 Economic Social and Environmental MaterialityWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility SDGs Responsible Actions of YIFI Laser Chapter Reference Reinforcing Corporate Governance As the leading enterprise in the "New Energy Battery Laser Application Industrial Chain" we have established an integrated innovation platform that combines R&D innovation engineering conversion and analytical testing driving the industrialization of cutting-edge technologies in advanced battery Annual Theme: Building a Chain-Integrated YIFI Laser strictly complies with laws and regulations to ensure lawful corporate governance. We continuously improve the mechanism for manufacturing and laser applications. Innovation Ecosystem Accelerating High-Quality Development of Laser Industry independent directors to perform their duties and enhance the work of three governance bodies guaranteeing the truthfulness accuracy and Provide talent and financial support for technological innovation and improve Brilliance: Crafting Excellence timeliness of information disclosure to protect investors' rights to information. Through multiple communication channels we enhance investors' R&D incentive mechanisms.Develop green technologies with low energy consumption high flexibility and Guiding Light: Green Empowerment understanding and trust in the company. In addition YIFI Laser is committed to fostering a work environment of integrity and self-discipline intelligence. strengthening ideological foundations through Party building and continuously improving corporate governance efficiency.Promote PV power generation to reduce production energy consumption.Comply with information disclosure regulations safeguard investors' rights and Board & Committee Governance interests and ensure the equal participation of small and medium investors in corporate governance. Converge: Fortifying Foundations Practice equal employment and promote gender equality and job diversity. Sustain: Upholding Responsibility YIFI Laser strictly complies with relevant laws and regulations including the Company Law of the People's Republic of China and the Securities Actively engage in public welfare focusing on education health and poverty Law of the People's Republic of China as well as relevant normative documents. In accordance with the Articles of Association we have alleviation and give back to society through charitable donations.established a comprehensive governance structure comprising the General Meeting of Shareholders Board of Directors Supervisory Board and the management known as the "Three Governance Bodies and One Management". The Board of Directors has established four specialized Build a responsible supply chain to promote the safe stable and green committees: the Strategy and Development Committee the Audit Committee the Nomination Committee and the Remuneration and Appraisal development.Reduce production energy consumption and increase the proportion of clean Brilliance: Crafting Excellence Committee. Each committee exercises its powers and functions in accordance with the respective rules of procedure of these specialized energy usage. Guiding Light: Green Empowerment committees providing professional opinions on major company decisions and offering strong support for the scientific decision-making of the Ensure compliance in the discharge of waste gas wastewater and solid waste to Board of Directors.mitigate environmental pollution.General Meeting of Shareholders Strategy and Development Committee Integrate climate change response into the Company's strategy. By optimizing Supervisory Board the energy structure reducing emissions and carbon and promoting green technological innovation we aim to alleviate environmental burdens enhance Guiding Light: Green Empowerment Audit Committee Board of Directors resilience against climate change risks and seize climate-related opportunities. Board of Directors Office Remuneration and Appraisal Committee General Manager Improve ESG governance structure to drive sustainable operations.Uphold business ethics and continuously optimize the anti-corruption man- Nomination Committee General Manager's Office agement system. Suppliers are required to sign the Integrity Agreement and Converge: Fortifying Foundations employees must sign the Integrity Pledge. Corporate Governance Structure Establish strategic partnerships with industrial chain to promote the construction In 2024 YIFI Laser formulated the Detailed Rules for the Special Meetings of Independent Directors. Going forward we will further safeguard of a joint innovation ecosystem. Brilliance: Crafting Excellence independent directors' working conditions promptly communicate operational updates and significant matters to them and ensure their right to Participate in industry associations take the lead in standard formulation Sustain: Upholding Responsibility information. This strengthens independent directors' supervisory role and enhances the scientific and rational decision-making of the Board.organize or participate in technical seminars.YIFI Laser emphasizes the diversity of the Board of Directors advocating for diversified composition and interdisciplinary knowledge backgrounds.The current Board consists of 9 members including 3 independent directors. All directors possess solid professional backgrounds and industry experience in new energy batteries mechanical engineering accounting law and management effectively ensuring the scientific decision- making of the Board.Key Performance Indicators During the reporting period ·? The proportion of independent directors: 33.33% ·? Shareholders' meetings held: 3 ·? Board meetings held: 7 ·? Supervisory Committee meetings held: 4 ·? Special Committee meetings held: 6 ·? Independent Directors' Special meetings held: 1 34 35Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Investor Relations Management Key Performance Indicators YIFI Laser continuously improves the information disclosure system actively maintains open communication channels with investors protects During the reporting period investors’ rights and interests implements sustainable dividend policies and diligently executes the "Enhancing Quality Efficiency and Focusing ·? Interactive platform responses: 104 on Returns" special initiative to bolster investor confidence. ·? Investor hotline sessions: 74 ·? Investor roadshows conducted: Information Disclosure 30 ·? Quarterly Earnings Briefings Conducted: 4 ·? Inquiry/complaint resolution rate: 100% In strict compliance with laws and regulations including the Company Law of the People's Republic of China and the SSE STAR Market Self- Regulatory Guidance No. 1 - Standardized Operations we have established governance documents such as the Articles of Association and the "Enhancing Quality Efficiency and Focusing on Returns" Learning Session Information Disclosure Management System. During the reporting period we formulated the Public Opinion Management System.。 Adhering to the principles of truthfulness accuracy completeness timeliness Key Performance Indicators Risk and Internal Control and fairness in information disclosure we faithfully fulfill information disclosure obligations continuously enhance the quality and transparency of YIFI Laser regards the continuous improvement of risk compliance management and internal control systems as fundamental to stable operations.information disclosure and guarantee that all shareholders and creditors have During the reporting period By continuously optimizing the risk control system we have established a risk internal control framework composed of compliance management equal access to the Company's information. Additionally we have increased ·? Disclosure announcements issued: 106 internal controls and internal audits. This framework further urges internal departments to fulfill their fiscal and tax compliance responsibilities voluntary information disclosure. Meanwhile we actively employ concise fosters a compliance culture and enhances awareness of risk and internal control management.clear and easy-to-understand language as well as diverse information presentation methods such as images and tables to improve the readability Risk management work is primarily undertaken by the Audit Department and Systems Department whose main responsibilities include continuously of our periodic reports and interim announcements. identifying risks in key areas implementing risk prevention and control measures and supervising the execution of related tasks to ensure the formulation and implementation of risk response measures. Additionally we regularly submit risk reports for material matters based on actual circumstances to further strengthen risk prevention capabilities.Investor Relations Compliance in operations is the prerequisite and key to high-quality development. We closely follow updates to laws and regulations changes in regulatory requirements and shifts in the market environment to timely revise or formulate new institutional documents related to compliance management to better adapt to the dynamic external environment and further improving the internal management level.YIFI Laser prioritizes investor relations management. Adhering to an "investor-centric" philosophy we actively fulfill information disclosure YIFI Laser places great emphasis on the fulfillment of duties and risk prevention and control by directors supervisors and senior management—the "key obligations strengthen investor communication and effectively convey corporate value to ensure all shareholders have equitable access to individuals". During the reporting period we actively organized them to participate in online and offline training sessions conducted by regulatory authorities to strengthen their compliance awareness.Company information.Safeguarding Investor Rights. In accordance with relevant laws regulations and normative documents we have formulated the Investor Relations Management System. By scientifically defining the authority and responsibility boundaries of the General Meeting of YIFI Laser strictly implements the internal control system continuously improving and optimizing relevant management systems and processes. In accordance Shareholders Board of Directors and Supervisory Board we have established an efficient decision-making and supervision mechanism with the regulatory requirements for listed companies and guided by the risk-oriented principle we regularly evaluate the effectiveness of internal controls to Safeguarding with clearly delineated responsibilities. This mechanism effectively safeguards the rights of all shareholders particularly retail investors to provide reasonable assurance for achieving internal control objectives. Meanwhile all departments complete internal control self-assessment reports based Investor Rights equally participate in corporate governance and fully share in the developmental achievements. During the reporting period institutional on relevant management regulations.investors and individual investors participated in voting at all 3 General Meetings of Shareholders held by the Company. During the reporting period YIFI Laser identified and addressed issues in the internal control system in line with internal control requirements and actual operational conditions aiming to establish a scientific and effective internal control system and ensure orderly business operations. Additionally we YIFI Laser has established a diversified investor communication platform including an investor relations section on its official website responded to material weaknesses identified in internal controls related to fundraising management and revenue recognition during the reporting period.dedicated investor hotlines and investor email addresses to facilitate smooth communication channels with investors. We strengthen Based on the assessment of material weaknesses in the financial reporting internal controls as of the evaluation report benchmark date no material communication with investors through various means including the SSE E-Interaction Platform hosting investor research visits regularly weaknesses in financial reporting internal controls existed. The Board confirms that we have maintained effective financial reporting internal controls in all Enhancing Investor conducting earnings briefings participating in broker strategy conferences and conducting media interviews and publicity initiatives. We material aspects in compliance with the internal control standards and relevant regulations. Therefore the internal control system is fundamentally sound Communication listen to investors' opinions and suggestions maintain good relationships with them and continuously enhance the transparency of the reasonable and effectively implemented.capital market.YIFI Laser strictly adheres to profit distribution policy when formulating annual dividend plans and actively implements the "Enhancing Quality Efficiency and Focusing on Returns" special initiative. We maintain dynamic equilibrium between operational development Prioritizing Investor performance growth and shareholder returns by optimizing the investment return mechanism and balancing dividend distribution with YIFI Laser formulated the Internal Audit System to conduct audit inspections of business-related risks. The internal audit function is primarily managed by Returns reinvestment needs. This approach ensures that capital investments form a virtuous cycle with long-term value creation. the Audit Department which is staffed with full-time auditors. The Audit Department operates under the leadership of the Board is accountable to the Audit Committee receives supervision and guidance from the Audit Committee and submits regular work reports. The Audit Department tracks internal control deficiencies and implementation issues identified during audits urges relevant responsible departments to develop corrective actions with deadlines and conducts follow-up reviews to ensure effective implementation of these measures. In the future internal audit work will transition to normalized management by establishing an internal auditor team adopting a rolling audit approach and multi-dimensionally integrating the internal audit system into business operations. 3637 Risk Compliance Internal Control Internal AuditWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Financial and Tax Management Upholding Business Ethics During the reporting period YIFI Laser formulated the System for Selecting and Key Performance Indicators Engaging Accounting Firms and Invoice Management Regulations to further enhance the quality of audit work and financial information. By standardizing YIFI Laser maintains a zero-tolerance stance towards corruption strictly enforces anti-corruption policies to ensure the integrity and transparency During the reporting period control activities in accounting and tax processes we annually commission a of the operations. We firmly oppose all forms of monopolistic and unfair competition adhering to market competition rules and fostering a healthy ·? Zero tax violations occurred third-party accounting firm to issue tax audit reports based on internal audit and and orderly market ecosystem.·? No overdue payments to small annual report audit results ensuring tax compliance and financial transparency. and medium-sized enterprises We continuously strengthen financial supervision and internal audits intensify Anti-Corruption Managementensuring equal treatment the management of raised funds and guarantee compliant operations and tax YIFI Laser actively responds to national anti-corruption and integrity-building policies attaching great importance to anti-commercial bribery and compliance with integrity.anti-corruption efforts. We have established a relatively comprehensive business ethics management system and are committed to building an upright business environment through system optimization training and education as well as supervision and inspection.Party Building Leadership YIFI Laser conducts regular business process reviews proactively carries out anti-corruption risk assessments and continuously optimizes anti- corruption management systems. Through effective anti-corruption management measures we effectively prevent commercial bribery and YIFI Laser persistently promotes the deep integration of Party building with business operations. Guided by Party building we drive business corrupt practices. We have clearly defined integrity guidelines for employees in the Employee Handbook requiring them to sign an Integrity innovation transformation and upgrading encourage Party members to play a pioneering and exemplary role in major projects and business Commitment Letter. We organize integrity training for employees to strengthen their awareness of integrity and self-discipline.challenges leading teams to overcome difficulties. Additionally we emphasize combining Party building with corporate culture construction integrating the Party's fine traditions into corporate culture. We actively organize Party building activities implement thematic education for To ensure compliance and integrity in business activities we require our partners to adhere to business ethics standards and require suppliers to Party members enhance ideological awareness strengthen Party spirit cultivation and team cohesion ensuring Party building and corporate sign Integrity Agreements. We take strict disciplinary actions against violators to promote the steady and sustainable development of our business.development resonate at the same frequency to jointly advance high-quality development. Additionally we have established whistleblowing channels to encourage employees and partners to actively participate in supervision ensuring that reported information is promptly verified and handled while strictly protecting the identity of whistleblowers.Key Performance Indicators Anti-Monopoly and Fair Competition To maintain a fair and just market environment and promote positive interactions with partners we require all employees of the Company and its During the reporting period subsidiaries to strictly adhere to the anti-corruption management system and the fair competition principles upholding honest and trustworthy ·? Party member activities organized: 5 business practices.Thoroughly study implement and carry forward a series of new thoughts new viewpoints and new conclusions put forward by General Secretary Xi Jinping on comprehensively deepening reform as well as the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China Reporting Mailbox 38 39Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Protecting Information Security Organization Job Responsibilities of Information Security Management Organization Research and formulate corporate information security strategies and objectives support and promote the devel- opment of information security work YIFI Laser strictly complies with information security laws regulations and institutional requirements including the Cybersecurity Law of the Make decisions on major issues related to information security management People's Republic of China the Data Security Law of the People's Republic of China and the Personal Information Protection Law of the People's Review the Company's information security management system approve information security policies regula- Republic of China. We have implemented comprehensive measures to strengthen information security defenses and established a robust tions and related major matters information security management system. This system covers critical areas such as equipment security network security data security as well as Be responsible for communication on major information security issues and coordinate resources among various software and hardware security ensuring multi-dimensional information security protection. departmentsInformation Security Committee Ensure the availability of resources necessary for information security work Information Security Governance Guide the execution and implementation of the information security work supervise the information security work of various departments and regularly report to the management Conduct regular risk assessments analyze the results and promptly report any information security vulnerabilities YIFI Laser has established comprehensive internal management systems including the Information Security Management Policy the Information to the management Security Management Organization and Responsibilities the Full Lifecycle Management System for Confidential Information and the Information Prepare the Measurement Methods Cycles and Target Values organize information security inspections check Security Behavior Norms (Policies) and Implementation Details for Rewards and Punishments. We continuously optimize our information security the execution of information security work in various departments regularly hold information security work meet-ings propose improvement measures for identified issues and supervise their implementation management system and steadily enhance the level of customer privacy and data protection. We have established a three-tier information security management organizational structure consisting of the "Information Security Committee - Information Security Working Group - Information Conduct information security work in various departments according to the plans and requirements of the man- Security Members" and clearly defined the job responsibilities of each level. agement group Promote and implement the policies objectives strategies norms and implementation details of the information Information Security security management system enhancing the information security awareness and skills of relevant personnel Working Group Be responsible for the specific execution of information security incident management including contingency planning drills and incident handling Management Representative Participate in and cooperate with regular risk assessments organized by the information security group coordinate the implementation of rectification opinions and implement relevant risk control measures Information Security Committee Information Security Working Group Information Security Members The leader is responsible for formulating the internal audit plan assigning personnel responsibilities and organiz- Information Security Management Organizational Structure ing all aspects of the internal audit work Information Security Internal Audit Team Conduct objective fair and independent audits of the information security implementation in the audited depart- ments in accordance with the audit plan and arrangements and issue corresponding audit reports Track and verify non-conformities In daily work actively cooperate with relevant departments to ensure the smooth implementation of information security management work in line with the Company's and center's information security requirements All Employees Technical development IT operation and maintenance technical service and support positions are responsible for adhering to all information security requirements in their respective work and assuming corresponding re- sponsibilities for information security execution Information Security Management Organization Responsibilities 40 41Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Information Security Risk Management YIFI Laser actively conducts information security training and cybersecurity emergency drills. Through comprehensive security knowledge learning and awareness course assessments we enhance employees' security awareness and skills to ensure the safe and stable operation of business YIFI Laser prioritizes information security risk prevention and control strictly complying with national information security regulations and industry systems.standards. We have established a multi-layered security protection system covering "network boundaries—application systems—data assets" utilizing real-time intrusion detection dynamic access control and multi-layer encryption technologies to effectively block external attacks and Basic Security Regulations mitigate risks of data tampering and leakage. Internally we implement a "data classification authorization + tiered data encryption + log audit Data Security Regulations tracking" mechanism. All business systems configure access permissions according to confidentiality requirements to further ensure information Physical Security Regulations security. In addition the Information Security Management Policy clearly specifies risk management measures across multiple areas including ContentsYIFI Laser Information Security Training internal security management computer management network security management and data center management. PC-Related Security Regulations Information Security Penalty Regulations Information Security Risk Management Measures Information Security Training Course The Information Department shall ensure systematic and physical backups of all information materials with all such materials stored in en- crypted format Key Performance Indicators All departments shall conduct network virus monitoring and regular virus scans promptly update virus databases and antivirus software to During the reporting period enhance overall network virus prevention capabilities ·? The coverage rate for information security training among new employees reached 100% Establish network security emergency response plans. Immediately report and implement countermeasures for major network incidents to with a 100% pass rate in the assessment.ensure rapid restoration of normal operations ·? Zero information security incidents or violations of relevant laws and regulations.Strengthen information auditing by preserving and backing up network logs for a specified period then analyzing them to identify security vulnerabilities The office shall establish a ledger for confidential and non-confidential removable storage media with information security personnel re- sponsible for their daily management and maintenance Enhance password management by saving files with hidden passwords ensuring all accounts are password-protected and promptly remov- ing accounts from the corresponding databases when they are no longer in use Install network security firewalls and database hardware firewalls to improve network security Implement VPN controls for external access to reduce risks of virus attacks and commercial data theft 42 43Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Promoting Digital and Intelligent Operations YIFI Laser empowers the transformation and upgrading of traditional industries through AI informatization and digital technologies. We continue to increase investment in digital operations management comprehensively establish an internal information management platform and promote the application of digital technologies in R&D innovation processes laying a solid foundation for full-scale digital management.Integration of Informatization and Industrialization Management In accordance with institutional requirements such as the Requirements for the Management System for the Integration of Informatization and Industrialization and the Classification Requirements for New Capabilities of the Management System for the Integration of Informatization and Industrialization and considering the actual operational situation YIFI Laser formulated the Management Manual for the Integration of Informatization and Industrialization in January 2025， which improved the management system for the integration of informatization and industrialization set up the management organizational structure for this integration and clarified the main job responsibilities of relevant roles.General Manager Management Representative Digital-Intelligent Progress YIFI Laser implemented a comprehensive digital management upgrade project constructing a new group-level project operation and management platform that covers all aspects of production and operation including finance warehouse quality procurement technology sales planning and production. Our aim is to enhance the integration of business and finance refine project cost management increase project schedule transparency and strengthen group-level operation and control capabilities.Through the interconnection and seamless data flow including automatic transmission collection aggregation and analysis across systems such as PDM OA T100 and MES we enable automated capture of process parameters related to personnel machinery materials and methods in production operations. This establishes a fully digitized control system spanning R&D production quality operations and finance covering all Organizational Structure of the Integration of Informatization and AAA for the Integration of Informatization and critical nodes across business processes. As a result the digital management capabilities for production and operations are significantly enhanced.Industrialization Management Industrialization Management System Certificate In the future YIFI Laser will complete the digitalization process for the operation monitoring platform reporting platform and WMS. Data sharing The Integration of Informatization and Industrialization refers to the convergence of informatization and industrialization. We have adopted the will be achieved among various systems further accelerating the overall digital and intelligent management process.policy of "strategy-led technology-driven intelligent manufacturing and continuous improvement" accelerating the integrated development of information technology and manufacturing technology to provide customers with intelligent products or manufacturing solutions. Meanwhile we apply digital and intelligent equipment MES to enhance the Company's intelligent manufacturing management level and operation efficiency striving to achieve intelligent manufacturing as soon as possible. During the reporting period we obtained the AAA for the Integration of Informatization and Industrialization Management Systems Certificate. 4445 Information Technology Department Planning Management Department Technology Center Business Division Procurement Department Marketing Management Center Finance Center Enterprise Management Center02 Brilliance: Crafting Excellence YIFI Laser focuses on technological iteration and strategic planning in its core business areas adhering to the three-dimensional innovation strategy integrating "laser technology + intelligent equipment technology + process applications". Upholding an application-oriented principle and following an innovation path guided by "demand-driven and technology-powered" approaches，we strengthen the dual-drive mechanism of innovation leadership and quality enhancement truly implementing the business philosophy of "customer-centric quality assurance innovation-driven and service-backed support". 48 Innovation-Driven Development 53 Comprehensive Quality Management 57 Optimizing Customer Service 59 Responsible Supply Chain Contributing to the UN SDGsWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Innovation-Driven Development Innovation Mechanism As the leading enterprise in the "New Energy Battery Laser Application Industrial Chain" in Hubei Province we rely on the Engineering Technology Since its establishment YIFI Laser has consistently regarded independent innovation and technological R&D as the core driving forces. Adhering Research Institute to establish a collaborative innovation system featuring the "integration of four chains" (industrial chain innovation chain to the three-dimensional innovation strategy integrating "laser technology + intelligent equipment technology + process applications" we have capital chain and talent chain). This has given rise to a novel "3+1" innovation model that integrates "process R&D and verification - engineering developed a comprehensive technology and product system centered on precision laser processing technology and embodied in intelligent R&D and verification - product design and manufacturing" with "analysis and testing". This model comprehensively enhances the overall efficiency manufacturing equipment. Through sustained and stable investment in R&D YIFI Laser has built a high-quality technological R&D platform of technological innovation achievement transformation and industrialization thereby supporting the innovation iteration and intelligent assembled a highly qualified R&D team and achieved a series of significant accomplishments. upgrading in advanced industries such as new energy batteries.Laser Process R&D Engineering R&D Center Center Innovation Platform Product Conduct research on various laser processing Design and develop Design and Analysis techniques determine optimal configurations standardized products and Leveraging national and provincial-level innovation platforms such as the National Industrial Design Center and the Hubei Provincial Engineering Manufacturing Testing and laser processing parameters components Analysis Research Center for Precision Laser Welding Technology YIFI Laser is deeply involved in the construction of the new energy battery laser Testing Special Laser Precision Mechanical application industrial chain. We have established an Engineering Technology Research Institute that integrates "R&D innovation - engineering Intelligent Software R&D Center Equipment R&D Components R&D transformation - analysis and testing". Under the research institute there are five major R&D directions: Precision Optical Devices and Systems Center Center R&D Laser Process R&D Special Laser Equipment R&D Engineering R&D and Intelligent Software R&D. 23 specialized laboratories have been set YIFI Laser R&D Research software technologies Explore laser up equipped with over 200 sets of advanced equipment and offering 119 analysis and testing items. The institute is capable of providing a range Innovation Model Research validate for equipment intelligence applications in and apply precision of services to enterprises along the upstream and downstream of the new energy battery laser application industry chain including R&D of core Process R&D Factory R&D upgrades develop cloud emerging fields develop mechanical components components for new energy battery laser welding equipment analysis and testing services for laser welding processes technology development and Validation and Validation platform systems automated equipment services for new energy battery laser welding engineering application verification services for new energy battery laser welding and intelligent Analysis software R&D for new energy battery laser welding equipment. These services aim to drive the comprehensive development of the new energy Testing Precision Optical Components R&D Digital Simulation Center R&D Center industry chain.Research validate and apply Conduct applied research on virtual Analytical Testing Center: 11 Labs Engineering Validation Center: 2 Labs precision optical devices simulations for processes devices and equipment CNAS Laboratory 1 (Yizhixincheng Prepa- Engineering Validation Center Continuity Integrity Reliability ration Phase) Disassembly Analysis Laboratory CNAS Laboratory 2 (Yizhixincheng Prepa- ration Phase) Novel "3+1" Innovation Model CT Scanning Laboratory Reliability Analysis Lab 1 Reliability Analysis Lab 2 R&D Support Reliability Analysis Lab 3 General Products Division: 9 Labs Performance Testing Lab 1 Research Performance Testing Lab 2 Institute - 23 YIFI Laser ensures the continuous advancement of technologies and products through scientific project management a highly qualified R&D team Intelligent Software R&D Center Physical Analysis Laboratory and sustained high-level R&D investment enabling rapid breakthroughs in new technologies and products.Laboratories Laser Intelligent Control Laboratory Environmental Performance Laboratory Laser Precision Mechanics Laboratory Structural Analysis Laboratory Laser Digital Equipment Laboratory Key Performance Indicators Optical Device Testing Laboratory Laser Precision Optics Laboratory 3D Experience Lab During the reporting period Process Validation Center: 1 Labs Laser Assembly Laboratory ·? R&D investment: RMB 92.64 million ·? R&D expenses as a percentage of revenue: 13.39% Precision Component Installation Room Advanced Laser Processing Laboratory ·? Number of R&D personnel: 430 ·? R&D personnel as a percentage of total employees: 43% Distribution of Laboratories in the Engineering Technology Research Institute 48 49Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Scientific Project Management High-Speed Magnetic Levitation Large-Cylindrical Full-Tab Battery Production Line YIFI Laser has formulated R&D management systems such as the R&D Project Management Process to standardize the full project lifecycle During the reporting period the intelligent assembly line for high-speed magnetic levitation large-cylinder full-tab batteries officially was rolled including planning initiation R&D result verification summary and archiving along with the responsible departments and application forms out after passing the Factory Acceptance Test (FAT) at our Central China manufacturing base and was delivered to the customer's factory. This involved at each stage. We develop scientific and reasonable R&D project plans clearly defining project objectives timelines and resource production line incorporates the industry's first-of-its-kind magnetic levitation transmission technology achieving a maximum high-speed requirements to ensure the orderly and efficient R&D execution. Additionally we establish a risk early warning mechanism to promptly identify and transmission rate of 2000mm/s in the main process sections. Combined with flying inspection technology and a comprehensive cleaning process address potential risks that may arise during the projects thereby reducing the likelihood of project failure. it enables high-efficiency high-yield high-precision high-flexibility intelligent operation and low energy consumption facilitating extreme manufacturing capabilities.Innovative Talent Recruitment Through a dual-driven approach of "high-end talent leadership + echelon cultivation" YIFI Laser has built a multidisciplinary R&D team spanning Conveying speed can reach up to 2000mm/s effectively shortening material transfer time and increasing transfer efficiency by more than 4 times optics mechanics electrical engineering materials science and software. As of the end of the reporting period the Company and its subsidiaries High Efficiency By integrating flying inspection technology production efficiency is improved by over 50% under the same had a total of 430 R&D personnel accounting for 43% of total employees. In terms of talent cultivation we have built a collaborative innovation mechanical design system integrating "industry-academia-research-application" creating a sustainable development ecosystem where leading talents who mentor teams and core talents who specialize deeply and young talents who grow rapidly. This sustainable development framework supports outstanding professionals in applying for various talent programs and professional certifications providing strong talent guarantees for technological High Yield Rate Adopting a new-generation machine vision intelligent inspection system for refined quality control Utilizing magnetic levitation transmission technology to control product positioning accuracy within 0.01mm innovation. During the reporting period Ran Changlin Mi Renbing and Cai Han'gang from YIFI Laser were appointed as technical experts for the Special Action on Patent Commercialization and Utilization by the China Patent Protection Association to promote the industrialization of high- value patents and facilitate the transformation of scientific and technological achievements.Achieving independent programming control of individual moving carriages through a magnetic levitation High Flexibility transmission system R&D Incentives Compared with traditional logistics methods the module changeover time is reduced by more than 50% An integrated intelligent operation and maintenance management platform enables full-process production We establish a clear performance evaluation system that links R&D achievements with performance bonuses and annual rewards monitoring motivating researchers to actively conduct innovative R&D work while improving efficiency and quality. We also recognize Intelligence Through big data interconnection it can capture and alert abnormal situations such as equipment failures outstanding R&D individuals and teams through internal awards such as "Innovation Star" and "Best R&D Team" boosting their and personnel violations in real-time with functions including power monitoring and automatic pressure Refining the Incentive sense of honor and accomplishment. Furthermore we offer additional rewards to R&D personnel who propose innovative ideas detection and adjustment Mechanism improve technical solutions obtain authorized patents or publish scientific papers to stimulate their enthusiasm for innovation.We foster a culture atmosphere that encourages innovation and tolerates failure inspiring R&D personnel to propose new ideas and Comprehensive energy consumption is reduced by more than 25% for equivalent requirements technologies. Moreover we promote cross-departmental communication and collaboration to broaden the innovative thinking. We Green and Low-Carbon Low mechanical wear no dust generation and maintenance costs are reduced by more than 25% Cultivating an Innovative also encourage R&D personnel to actively participate in product launches academic conferences exhibitions industry seminars to The equipment occupies a small footprint significantly reducing lighting power and labor costs Environment stay updated on the latest industry research findings and technological trends thereby sparking innovative inspiration.Innovative Achievements During the reporting period YIFI Laser achieved substantial R&D outcomes developing new technologies including high-dynamic laser processing systems welding quality closed-loop monitoring systems and precision customized laser conditioning systems. We also launched multiple new products such as PV perovskite equipment structural component equipment ultra-fast laser processing equipment and laser grooving equipment. In the field of new energy battery equipment we introduced a series of new products such as the high-speed magnetic levitation full- tab large-cylindrical battery assembly line square battery high-speed assembly line fully automated square battery CTP module production line next-generation cell structural component assembly line sodium-ion battery intelligent equipment and solid/semi-solid state battery intelligent equipment. In cylindrical battery equipment we took the lead in the industry in overcoming technological challenges related to the cylindrical full-tab battery manufacturing launching full-process equipment for the cylindrical full-tab cell assembly section and fully automated assembly for cylindrical full-tab cells. These solutions support production rates ranging from 3 to 360ppm and accommodate full-series cylindrical full-tab batteries with diameters of 18mm 21mm 32mm 40mm 46mm and 60mm effectively meeting the growing market demand for mass production of cylindrical batteries. Additionally New Cohesion the subsidiary specializing in lithium battery factory EPC solutions officially released a semiconductor AMHS system significantly accelerating the process of domestic substitution. 50 51Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Production Equipment for Repurposing and Echelon Utilization of Retired Power Batteries Case Study Human-Centered Product Design We are committed to perfecting an integrated layout across the entire industrial chain spanning from structural components battery cells module In addition to product performance YIFI Laser prioritizes human-centered design PACKs to recycling/dismantling equipment and further to intelligent logistics equipment and systems for entire plants as well as warehousing. principles. Due to the diversity in form and size of non-standard customized equipment the We focus on researching production equipment for repurposing and echelon utilization of retired power batteries which is applicable to the equipment’s HMI operating areas lacked uniform standards often causing inconvenience automated repurposing of retired power batteries for testing dismantling and the reassembly of battery packs in echelon utilization. This for operators. To reduce occupational health risks for employees and enhance the comfort equipment boasts core advantages such as safe production flexible production battery cleaning and intelligent management helping to achieve of equipment usage we initiated an ergonomic optimization design for the equipment's an ecological closed-loop for the recycling of power batteries and reduce the carbon footprint throughout the full lifecycle of the new energy HMI operating areas. This optimization focused on adjusting the height of the eye-to- industry chain. display shoulder-to-touchscreen and buttons and elbow-to-keyboard ensuring natural operation for most users and reducing fatigue. Currently the ergonomic optimization design Safe Production Flexible Production for HMI operating areas has been implemented across all of the non-standard customized equipment and continues to receive high praise from customers. HMI Operation Zone Ergonomics Optimization Design Conduct online inspection of battery appearance and specifications perform- Adopt a reconfigurable unit and modular designs for components combined ing multi-grade sorting and grouping of retired single battery cells. By integrat- with an intelligent flexible logistics system to enable rapid layout and agile ing technologies such as digital online inspection we achieve strict control over model changeover of production lines at the production site effectively the consistency of repurposed batteries meticulously managing each process enhancing the product's scalability. This approach utilizing reconfigurable Intellectual Property Protection step. Temperature monitoring insulation protection and automation of key units and modular design along with an intelligent flexible logistics system processes are employed to ensure the safety of both personnel and equipment facilitates quick production line setup and swift model transitions on-site sig- operation nificantly improving the product's expansion capability YIFI Laser has formulated comprehensive intellectual property management regulations including the Patent Management Measures the Software Copyright Management Measures and the Trademark Management Measures to standardize the IP application registration utilization Battery Cleaning Intelligent Management and protection. Concurrently we prioritize IP risk management by implementing specialized protocols such as the Intellectual Property Risk Management Control Procedures and the Overseas IP Early Warning Mechanism (Regulations). These frameworks enable proactive monitoring Employ advanced laser cleaning technology to efficiently remove residues Utilize an MES-based information manufacturing system that not only ena- such as blue film and paint from battery surface bles traceability of production information for repurposed batteries but also of global IP disputes through domestic and international early warning systems allowing us to track competitor activities in real-time while provides an intelligent production foundation for enterprise production man- developing strategic measures for patent generation technology utilization and protection effectively mitigating risks associated with redundant agement and process optimization R&D and potential infringement.EPC-Level Intelligent Logistics Solutions Given the business growth and new technology R&D there has been a steady increase in IP applications and grants in recent years necessitating centralized management of patents and software copyrights to prevent technology leakage while monitoring infringement risks and legal The subsidiary New Cohesion leverages advanced software management systems and digital twin technology possessing integrated hardware compliance dynamics in real-time and safeguarding the security and commercial value of R&D investments. To this end we constructed an and software capabilities providing one-stop EPC-level services of "whole-line logistics + intelligent manufacturing systems" to manufacturing intelligent IP management platform that integrates IP data across R&D production and legal functions. This system establishes a "collaborative enterprises. Through 3D virtual reality technology New Cohesion provides three-dimensional simulation displays of factories real-time reflections creation and sharing mechanism" that accelerates technology reuse and innovation cycles while establishing a comprehensive management of factory production processes and operational statuses thereby achieving digital factory visualization and creating intelligent factories equipped system covering IP application maintenance and enforcement. By leveraging structured categorization (patent databases and trademark with intelligent manufacturing and flexible production capabilities. It has taken the lead in achieving industrial applications in the fields of solid- databases) and intelligent search functionalities (full-text search and tag filtering) we have shortened R&D cycles (reducing the new product R&D state batteries and sodium batteries. During the reporting period New Cohesion introduced three core systems for the semiconductor AMHS: cycle by 20%) and provided data support for strategic insights (analyzing the geographical distribution of patents). Additionally through an open Overhead Hoist Transport (OHT) high-speed tower lifters and dense stockers for line-side storage. These innovations accelerate the process platform we collaborate with upstream and downstream enterprises to promote the integration of "industry-academia-research-application." of domestic substitution facilitating dust-free automatic handling under large-scale production conditions in semiconductor wafer fabs and promoting the intelligent digital and green development of the industry. Comprehensive Quality Management Adhering to the business philosophy of "quality assur- Key Performance Indicators ance" and abiding by the code of conduct of "Adhering During the reporting period to Operational Standards and Pursuing Zero Product ·? Valid patents held: 455 ·? Invention patents: 103 Defects" YIFI Laser implements comprehensive quality ·? New patent applications: 154 ·? New patents granted: 84 management. We flexibly apply lean management ·? Software copyrights held: 152 methodologies to ensure the standardized develop- ·? New software copyright applications: 44 ment of customized products as well as the reliability ·? New software copyrights granted: 54 safety and sustainable development of non-standard Overhead Hoist Transport (OHT) High-Speed Tower Lifters (Tower) Dense Stockers for Line-Side Storage ·? Trademarks registered: 26products. 52 53Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Quality Management System Quality Management YIFI Laser places great emphasis on quality management and has formulated a quality policy that emphasizes "Stable Quality Attentive Service People-Oriented Full Participation Safety and Health Environmental Protection Innovation-Driven Customer Satisfaction." We link the performance evaluations Feasibility Assessment of the Proposal DOE Validation (Design of Experiments Verification) DFMEA (Design Failure Mode and Effects Analysis) Development of SOP (Standard Operating Procedure) Manuals of senior management with KPIs related to quality management. We have obtained ISO 9001 Quality Design Output of Key Technical Indicators Cost-Benefit Analysis Management System certification achieving 100% certification coverage in the non-standard industry.We conduct internal audits management reviews and external audits annually to maintain the system's effective operation. Additionally to visualize the execution of the quality management system and its correlation with processes we have developed a secondary process network diagram and compiled 40 Maintenance of Qualified Supplier List Supplier Research and Audits secondary procedure documents including the Control Procedure for Addressing Risks and Opportunities Supplier Performance Evaluation Supplier Audit and Review the Control Procedure for Product Design Manufacturing and Delivery the Control Procedure for Supply Chain Supplier Continuous Improvement Supplier Coaching and Mentoring Nonconforming Outputs and the Control Procedure for Continuous Improvement Measures. Quality Management System Certification Full Lifecycle Quality Management Inspection Specifications and SIP Standardization MSA and SPC Analysis PFMEA (Process Failure Mode and Effects Analysis) Conformity Assessment of Processing Drawings Guided by the SMART principles we formulate clear and actionable quality control plans that align with the internationally recognized PMP project Manufacturing and Processing Processing Technology Optimization 8D Methodology and Continuous Improvement management certification. Leveraging a digital full-process management platform we achieve full lifecycle quality management from product R&D to delivery and acceptance through organizational ideological institutional technological methodological and informational safeguard mechanisms.Project Management Implementation of Inspection Standards and Frequency SOP Compliance Monitoring Assembly Precision Implementation Monitoring Inspection Data Collection and Analysis Assembly MSA and SPC Analysis 8D Methodology and Continuous Improvement Digital Full-Process Management Platform One Central Hub Building an Efficient Execution Network Beat Function Compliance Monitoring Commissioning Process Records Monitoring Leveraging four intelligent systems: ERP PDM MES and PLM we achieve Aligned with the internationally recognized PMP project management Test Data Collection and Analysi MSA and SPC Analysis digital management throughout the full process from product R&D to certification we adopt a project-centric approach to drive the efficient Commissioning 8D Methodology and Continuous Improvement delivery and acceptance. This enables us to swiftly meet customer needs execution of the full project lifecycle encompassing product R&D efficiently achieve project goals and ensure high-quality completion of manufacturing delivery and after-sales service. By consolidating efforts delivery and acceptance. we build a highly cohesive and professional team dedicated to providing comprehensive project management services to our clients throughout the project journey.FAT Test Report for Equipment Delivery of Accompanying Documentation Delivery Process Supervision Closure of Remaining Issues Delivery Customer Training Project Post-Mortem Review Integrated Production and Delivery Ecosystem Forging a Comprehensive Manufacturing System Global After-Sales Teams and Professional Service We integrate manufacturing with engineering delivery creating an innovative We have established dedicated after-sales teams both domestically and and comprehensive manufacturing system that spans both manufacturing internationally to support global business operations. Based on decades Collection of Customer Complaint Feedback Quality Issue Traceability and delivery processes. This integration facilitates seamless communication of after-sales data storage and analysis we have constructed a robust after- After-Sales Equipment Failure Analysis Customer Satisfaction Surveysbetween manufacturing and delivery enhancing both manufacturing and sales system that includes mail-in repair replacement and rapid response delivery capabilities and ultimately shortening project lead times. services. This system ensures that we can provide professional after-sales services to our customers worldwide.Full Lifecycle Quality Management International Certification PMP - Digital Management and Control Over the Full Project Lifecycle 54 55Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Quality Culture Construction YIFI Laser formulates the quality policy and the Ten Codes of Conduct for Employees clearly defining the overall commitment and direction for quality management. We encourage all employees to recite these guidelines during weekly morning meetings. Additionally we create corporate quality culture display boards featuring topics such as Lean Six Sigma production promotion an introduction to the five quality tools and showcasing employee excellence aiming to enhance employees' quality awareness.Organizational Ideological System Technical Methodology Information Assurance Assurance Assurance Assurance Assurance Assurance Quality Management Quality Policy Quality Manual Advanced Quality Incoming Material Preventive Actions Leadership Team Quality Objectives Standard Planning Inspection Corrective Actions QC Team Quality Improvement Operating In-Process Quality Self-Inspection at Customer Evaluation Quality Audit Task Force Procedures Work Planning Workstations Instructions Quality Control Plan In-Process Inspection Quality Assurance Mechanism Morning Quality Meeting Quality Culture Display Board Quality Enhancement and Improvement Quality Training The Quality Management Department took the lead in organizing cross-departmental QCC teams involving quality production and engineering YIFI Laser conducts annual internal and external training sessions on quality-related topics. For internal training we have organized over 80 personnel. The aim was to mobilize the enthusiasm of all employees to comprehensively improve quality. Under the organization of the QCC sessions through a combination of online multi-person training via the Zhuoyi Academy and offline OPL single-point education with PPT materials teams during the reporting period YIFI Laser approved 49 improvement proposals such as the 50 Angle Detection Tooling for Rolling Wheels covering more than 1600 participants. In terms of external training we have arranged for employees to participate in over eight training programs and the Installation of Anti-Interference Radar on 10T Forklifts. Employees were provided with bonuses or gifts as incentives for their continuous including those organized by the Ezhou City Supervision Bureau 5S visualization training CNAS training on the criteria for the competence improvement efforts. Meanwhile we established a supplier management process that covers the full lifecycle from introduction to replacement. of testing and calibration laboratories and quality diagnosis seminars hosted by the Provincial Quality Inspection Institute reaching over 800 This process enables us to promptly identify and urge suppliers to rectify non-conformities. For instance under the guidance of quality management participants. As a result the overall quality management skills of employees have significantly improved. The certification rate among employees personnel and with the collaborative participation of suppliers we significantly improved the defect rate of chrome-plated parts regarding rust in the Quality Management Department (Six Sigma Green Belt engineers and PMP) exceeds 40% and the proportion of employees with practical defects. The predicted rate of rusting is expected to decrease by approximately 10%. operational skills rated at Level B or above has increased by approximately 30%.During the reporting period YIFI Laser achieved a groundbreaking achievement in the acquisition of precision inspection instruments. Testing capabilities have been upgraded from an experience/inspection level to a guarantee/prevention level with inspection accuracy improving from 0.01mm to 0.001mm. Five suppliers have seen their capability ratings upgraded from Grade C to Grade B. These advancements have driven Optimizing Customer Service significant improvements in core quality indicators including the first-pass yield rate of outsourced raw materials the first-pass yield rate of semi- finished products and the first-pass qualification rate of factory-shipped items.YIFI Laser adopts a customer-centric approach with a service process comprising five key stages: initial contact to understand customer needs technical discussions to formulate technical solutions contract signing and manufacturing progress tracking to ensure product delivery and product operation to meet customer acceptance. We have established institutional norms for customer service management including the Control Case Study Installing Anti-Interference Radar on 10T Forklifts to Enhance Operational Safety Procedure for Customer Satisfaction Measurement After-Sales Management Control Procedure and Customer Complaint Handling Procedure.Due to the high rear end and long length of 10T forklifts the blind spot for forklift drivers increases significantly when reversing necessitating the assistance of another person to observe the surrounding environment. In dangerous situations because 10T forklifts are fuel-powered and generate considerable noise drivers often cannot promptly hear the commands from their assistants leading to potential safety accidents. To address this issue we installed anti-interference radar on 10T forklifts. This radar can effectively detect distances and provide simultaneous visual and audible alarms through lights and beeping sounds with the beeping becoming more urgent as the object approaches. This solution not only reduces personnel costs but also enhances operational safety. 56 57Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Customer Complaint Handling Enhancing Customer Satisfaction YIFI Laser establishes multiple complaint channels including customer service hotlines email suggestion boxes on-site complaint and official accounts on social platforms to receive customer complaints and feedback. Complaint handlers promptly record the complaint information YIFI Laser conducted customer satisfaction surveys at the pre-sales in-sales and classify the complaints based on their content and forward the information to the relevant business units for evaluation analysis and handling.after-sales stages to gauge customers' satisfaction levels throughout the full service If the complaint is determined not to be our responsibility we will provide a detailed investigation and analysis report and respond appropriately process. This ensures accurate identification of customer needs and expectations. We to the customer. If the complaint is our responsibility we will handle it according to the response requirements for different complaint levels.classify and summarize unsatisfactory aspects from customer feedback and propose For general-level complaints we will respond within 8 hours and resolve them within 48 hours. For important-level complaints we will respond improvement measures forming the Analysis Report of Customer Satisfaction within 2-4 hours and provide feedback to the relevant departments for resolution. For major-level complaints we will respond within 1 hour Survey. We urge relevant responsible departments to implement rectifications prioritize ensuring the basic operational functionality of the equipment and propose a solution within 24 hours. For crisis-level complaints we will and continuously enhance customer satisfaction. During the reporting period we immediately activate the emergency response mechanism establish a dedicated handling team led by senior leaders respond within 30 minutes received numerous thank-you letters and honorary awards from customers which and ensure the restoration of equipment operation within 24 hours. We summarize complaint data monthly analyze recurring issues optimize not only serve as a full endorsement of our product quality and service standards but OF week 2024 Lithium Battery Equipment Outstanding Brand equipment design or service processes and provide training to employees to prevent similar issues from recurring in the future.also act as a powerful driving force for us to continually improve.Responsible Supply Chain YIFI Laser ensures the stable supply through a comprehensive supply chain management system and thorough supply chain risk management. We integrate sustainable development factors into the full process of supplier management committed to building a responsible supply chain.Supply Chain Governance By optimizing supply chain organizational structure and management system YIFI Laser has achieved full-process risk management from admission to exit. We sign long-term agreements with core suppliers to ensure the priority supply of critical materials while actively diversifying supply channels by introducing multiple suppliers for different types of equipment effectively dispersing supply risks. To ensure effective control over the full procurement process guarantee that the procured products meet specified requirements and production needs we have further Gotion High-Tech 2024 Outstanding Supply Award Partial Customer Thank-You Letters Received During the Reporting Period improved the Control Procedure for Externally Provided Processes Products and Services document strengthening supplier management to ensure that suppliers can provide high-quality reasonably priced materials on a long-term and stable basis.Architecture Optimization Functional Upgrading Merge or split departments (e.g. procurement supply chain) to reduce organizational layers and accelerate decision-making efficiency. Establish a supplier resource pool enhance perfor- Establish regional/global supply chain centers to accom- mance management and cost analysis and continu- modate business expansion or localization needs. ously strengthen supply chain capabilities.Strategic Alignment Core Objective Implement a centralized procurement system to achieve Partial Customer Commendation Banners Received During the Reporting Period subsidiary control and price sharing reducing overall costs. Achieve a more efficient agile and risk-resilient supply chain system through structural adjustments.Key Points of Supply Chain Organization Restructuring 58 59Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Supply Chain Management Strategy YIFI Laser reached strategic agreements with major customers becoming their During the supplier admission application phase we conduct a comprehensive verification of supplier qualifications. Specific measures include requiring suppliers to provide key qualification documents such equipment strategic suppliers. This reflects the strategic layout of deep cooperation as business licenses production permits quality management system certifications (e.g. ISO 9001) and and mutual benefit with core customers. Suppliers are required to sign the environmental and safety certifications (e.g. ISO 14001/45001). Additionally we perform an in-depth analysis Supplier Integrity and Self-Discipline Commitment the Supplier Basic Information of the supplier’s financial stability review any legal litigation records and monitor public sentiment to identify potential risks such as screening out potential "shell companies." Through this admission review Questionnaire and the Confidentiality Agreement to resolutely prevent corrupt Supplier Admission Review process we effectively select high-quality reliable suppliers ensuring a stable and reliable supply chain.practices and ensure the integrity and legality of procurement. As a member of the national standard working group for green supply chains we actively participate in the formulation and promotion of green supply chain standards driving the green and sustainable development of the supply chain. We are committed to establishing long-term and stable cooperative relationships with suppliers. New Cohesion Supplier Conference We conduct further on-site audits for admitted suppliers evaluating their production facilities storage conditions and safety management systems in person to ensure compliance with technical standards and Supply Chain Risk Management safety production requirements.Supplier On-site Audit YIFI Laser has achieved refined management and control over the full lifecycle of suppliers by establishing a full-process risk management framework that encompasses supplier admission review contract signing performance evaluation special audits and exit/elimination processes.This ensures the stability and sustainability of the supply chain. When signing contracts with suppliers we clarify quality requirements delivery timelines confidentiality agreements and liability clauses embedding them into risk management clauses to ensure controllable risks during contract execution. By establishing a comprehensive regular performance evaluation system and setting key performance indicators (KPIs) such as on-time delivery rate quality pass rate and problem Copy of the supplier's business license Supplier basic information collection response speed we regularly assess suppliers. The assessment results serve as an important basis for Supplier Basic Information Survey Form (If the supplier is an agent a proof of agency is required) continuing or adjusting cooperation. We implement monthly and annual rating management for suppliers to Supplier Cooperation Assessment dynamically monitor their performance. For high-risk suppliers we conduct special audits focusing on their financial health production stability and compliance.Supplier admission application Qualified Supplier Admission Application Form Determine whether an on-site inspection is required For terminated suppliers we analyze historical risk events summarize risk transmission patterns (e.g. the impact of financial crises on delivery) and archive supplier cooperation records and risk cases to form an Yes Supplier On-site Audit Record Form internal knowledge base providing references for future supplier selection.Unqualified Audit Improvement Report Supplier Exit Mechanism Conduct an on-site inspection No Qualified Full-process Assessment of Supplier Risk Management Unqualified Conduct trial production evaluation New Supplier Trial Production Evaluation Form Risk Management for Stable Supply of Scarce Materials Qualified Proceed with countersignature by relevant units Qualified Supplier Admission Application Form YIFI Laser is committed to establishing long-term partnerships with core suppliers. By signing long-term agreements we ensure priority supply of critical materials (core components) and regularly communicate with them to strengthen the collaborative bond. Meanwhile we actively diversify supply channels by introducing multiple suppliers for different types of equipment thereby building a rich pool of supplier resources and Sign quality-related agreements Supplier Quality Assurance Agreement effectively dispersing supply risks.Approve the supplier for admission Eliminate the supplier Qualified Supplier Admission Application FormList of Qualified Suppliers Full-Process Risk Management Flowchart from Supplier Admission to Exit 60 6103 Guiding Light: Green Empowerment Adhering to the philosophy of green low-carbon and circular development YIFI Laser takes environmental protection as its own responsibility actively responds to climate change continuously promotes the use of clean energy and effectively advances environmental protection efforts through measures such as energy and resource management as well as pollution prevention and control. By minimizing environmental impact we take concrete actions to protect the environment and achieve sustainable green development. 64 Environmental Compliance Management 64 Addressing Climate Change 68 Strengthening Energy Management 69 Optimizing Resource Utilization 70 Compliance with Waste Management 71 Biodiversity Conservation Contributing to the UN SDGsWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Environmental Compliance Management Addressing Climate Change Governance We have incorporated climate change governance into our ESG governance framework clearly defining the responsibilities of the Board of YIFI Laser strictly complies with environmental protection laws regulations and Directors and management. By adopting a top-down approach we are advancing our capabilities in addressing climate change.relevant standards. We have established a robust environmental management system formulating procedural documents and internal management systems such as the Quality Environment Occupational Health and Safety Management Manual Addressing Climate Change Strategy the Control Procedure for Identification and Evaluation of Environmental Factors and the Control Procedure for Obtaining and Identifying Laws Regulations and Other In accordance with the TCFD framework's recommendations we are conducting identification and assessment activities for physical risks Requirements. We have constructed an environmental management framework transition risks and climate opportunities associated with climate change.led by the General Manager. YIFI Laser has set an overarching environmental goal Internal Auditor Training of zero environmental pollution accidents and annually establishes specific control measures for environmental targets indicators and solutions. We are committed to controlling pollution emissions conserving energy and Climate Change Risk and Opportunity ensuring green and environmentally friendly operations. As of the end of the reporting period the ISO 14001 Environmental Management System Certification remained valid and no environmental accidents occurred. Risk Type Risk Description Impact Cycle Financial Impact YIFI Laser places great emphasis on the prevention and response to sudden environmental incidents. We regularly conduct environmental factor Revenue reduction due to decreased identification formulate prevention and control measures for the identified environmental factors establish response and control procedures for risks and Production interruptions depreciation of fixed operational capabilities opportunities set up a mechanism for identifying and addressing environmental hazards and conduct environmental inspections in an orderly manner. Acute Risks assets and labor losses caused by extreme Short-medium term weather (such as heavy rain typhoons floods Increased operating costs admin- Physical high temperatures etc.) istrative expenses and fixed assets In addition YIFI Laser advocates for a paperless green office and promotes green commuting. We centrally manage temperature control in office maintenance costsRisks areas reduce the consumption of printing paper encourage the reuse of paper implement waste sorting and uniformly recycle waste batteries Climate warming may lead to an increased risk and other materials. We also organize environmental protection-related training to enhance employees' environmental awareness and promote of extreme weather events which can severely Increased operating costs admin- Chronic Risks impact critical public infrastructure. This directly Long term istrative expenses and fixed assets eco-friendly behaviors effectively controlling environmental risks and impacts. or indirectly affects daily operations increasing maintenance costs operational costs and safety risks致力激光创新拓展笃行装备智能升级 LASER INNOVATION & EQUIPMENT INTELLIGENTIZATION关于新聚力科技员工停车位租赁及办公环境绿色升级倡议行动倡导绿色出行的通知 亲爱的逸飞小伙伴： **绿色办公行为公示、规则与处罚制度** Policy and As environmental regulatory requirements are Write-offs and early retirement of ---为解决新聚力科技公司员工在园区停车难题，公司已租赁园区部###**一、行为规则细化** 1. **办公区域禁餐** strengthened we face growing pressure in terms Medium term existing assets 分车位供员工使用。现将相关事宜通知如下： -禁止在办公区（含工位、会议室等）就餐，包括外卖及自带餐食。 - 违规行为界定：发现食物残渣、餐盒或就餐痕迹即视为违规。 Legal Risks 2.**垃圾分类管理**车位申请：有停车需求的员工，请于2024年1月3日下班前前 - 生活垃圾需按“可回收物”“其他垃圾”“有害垃圾”分类投放至对应垃圾桶。 of complianceIncreased operating costs and admin- -大件可回收物（如纸箱、塑料制品）需送至指定集中点（行政楼-紫荆餐厅门前或车间茶水间）。 istrative expenses-违规行为界定：混合投放、随意丢弃或未按指定地点处理垃圾。将车辆信息（车牌号、车型、车辆颜色）报备至人事行政部。 3.**空调使用规范** -夏季温度≥26℃，冬季温度≤22℃；使用时关闭门窗。 -违规行为界定：擅自调整温度、未关闭门窗或下班未关空调。使用规范：成功申请的员工，需遵守园区停车规定，按指定车位 4.**非必要电源管理** -离开工位需关闭照明、电脑、打印机等设备电源。 - 违规行为界定：设备长时间待机或无人使用时未断电。 停放，不得私自更换或转租。 To promote carbon emission reduction substan- 5. **吸烟区管理** Increased R&D expenditures leading -仅限指定吸烟区（如楼外吸烟亭）吸烟，严禁携带烟头进入办公区。 -违规行为界定：非吸烟区吸烟、乱扔烟头或烟灰。绿色出行倡导：虽然公司提供了车位，但还是倡导大家绿色出行。 --- tial investment is required for the introduction ### **二、公示机制** 公共交通、自行车或拼车，能减少拥堵与碳排放，还能为环保出份力。 to reduced profits 1.**规则公示** - 通过企业OA系统、公告栏、全员邮件及新员工培训手册公示规则。 - 每月初发布更新提醒，确保全员知悉。 选择绿色出行，更有益于员工身心健康。 Technological of energy-saving and consumption-reducing 2. **检查结果公示** Revenue reduction due to decreased - **方式**：每月底在公司群内实名通报违规人员及具体行为。 -**内容**：包括违规次数、类型、处罚措施等，隐去敏感信息（如工号）。希望大家积极响应，共同营造绿色、便捷的工作环境！如有疑问，- **频次**：每月一次，遇严重违规事件即时通报。 Risks equipment or clean technologies. Moreover the Medium term--- output联系人事行政部。 ### **三、处罚措施** 1. **分级处罚制度** uncertainty surrounding the development of -**首次违规**：口头警告，需签署《行为承诺书》，并参加环保知识培训。 - **二次违规**：部门内通报批评，扣除当月环保绩效分（10分/次）。 Increased capital costs operating-**三次及以上违规**：全公司通报，取消年度评优资格，并罚款200元/次。 2. **严重违规处理** 无锡新聚力科技有限公司 new technologies may result in the inability to -引发安全隐患（如未关电源导致设备故障）或卫生问题（如招致虫鼠）： 直接罚款500元，并提交书面检讨至行政部。 2024年 1 月 2 日 costs and administrative expenses 总部：武汉逸飞激光股份有限公司 地址：武汉·中国光谷·未来科技城 C1 栋 服务热线：400-99-18650 网址：www.yifilaser.com 3.**申诉机制**[1/1] - 员工对处罚有异议，可在公示后3个工作日内向行政部提交证据申诉。 Transition recoup early-stage investments---###**四、监督与执行** 1.**检查方式** -行政部联合各部门负责人进行不定期抽查，调取监控录像辅助核查。 2.**执行责任** -部门负责人需配合宣导规则，并督促整改违规行为。 ISO 14001 Environmental Management ---**让我I们n共同i践t行iative for Green Office Advocacy for Green Commuting Risks Affected by climate change global energy tran- 绿色承诺，打造高效、健康、可持续的办公环境！****行政部监督电话：400-99-18650** System Certification **生效日期E：2n024年v9月i1r日o** nment Upgrade sition the prices of energy water and raw mate---- **武汉逸飞激光股份有限公司 行政部** Revenue reduction due to lost orders 地址：武汉·中国光谷·未来科技城 C1 栋 网址：www.yifilaser.com rials rise leading to increased production costs.---（注：本制度最终解释权归公司行政部所有。） Market Risks Customers increasingly prefer environmentally Medium-long term Increased operating costs and admin-istrative expensesAddressing Climate Change friendly products increasing R&D costs and ex-tending development cycles If we do not actively engage in climate change Reputation response actions we may not be able to meet Increased operating costs and admin- YIFI Laser is committed to pursuing green low-carbon and circular development. In line with the recommendations of the Task Force on Climate- Risks stakeholders' expectations resulting in damage Short-medium term istrative expenses related Financial Disclosures (TCFD) we have established a climate governance system across four dimensions: governance strategy risk to its own image and reputation management and indicators and targets. We have integrated climate change response into the Company's strategy and are working to reduce environmental burdens enhance our resilience to climate change risks and seize climate-related opportunities by optimizing our energy mix reducing emissions and carbon footprint and promoting green technological innovation. 64 65Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Risk Type Risk Description Impact Cycle Financial Impact Opportunity Type Response Measures/Strategies Develop innovative technologies that reduce environmen- Technological Gain insights into market demands and accelerate product innovation to empower low-carbon develop- Technological tal impacts enhance resource utilization efficiency lower Improve competitive position and Innovation ment in the industry through intelligent manufacturing solutions Innovation production costs enable us to better adapt to market de- Medium-long termmands empower low-carbon development in the industry increase revenue Launch energy-efficient intelligent equipment products Resource Resource and boost competitiveness Efficiency Efficiency Continuously optimize energy management and information management systems to reduce energy con-Production sumption Production Optimize production processes promote lean manage- Optimization Reduce the carbon footprint of products from the source by minimizing product consumables and optimiz-ment and reduce resource waste through technological Medium-long term Decrease in operating costsOptimization ing manufacturing processesinnovations to lower operational costs Energy Adopt renewable energy sources to reduce reliance on Energy Transition Formulate a renewable energy development plan to increase the proportion of renewable energy use and traditional energy lower energy costs and decrease carbon Medium-long term Decrease in operating costs optimize the energy mixTransition emissions Energy Energy Equipment Phase out low-efficiency equipment and introduce energy- Equipment Adopt advanced and efficient equipment and instruments and promote energy-efficient motors lighting Decrease in operating costs Upgrades saving production equipment and technologies to reduce Short-medium term systems to reduce energy consumption per unit of productenergy consumption during the production process Upgrades Market Market Share Offer green and low-carbon products that align with Medium-long term Enter new and emerging markets Market Market Share Expand into the battery recycling sector and develop products such as flexible production lines for battery Expansion customer preferences to increase market share increase revenue Expansion recycling disassembly and reassembly Climate Change Risk and Opportunity Response Measures Addressing Climate Change Risk Management Risk Type Response Measures/Strategies Risk Inventory and Identification Develop emergency response plans for extreme weather events stockpile emergency supplies and conduct Acute Risks regular emergency drills to enhance the emergency response capabilities Conduct an initial inventory of climate-relat- Incorporate considerations of climate disasters and impacts into environmental impact assessments for new ed risk and opportunity categories.Physical factory construction Impact Assessment of Risks and Establish identification and response meth-Risks Assess the risks associated with potential extreme weather events and factor this into the selection of new 01 odologies and carry out risk and opportunity Opportunities Chronic Risks sites for construction mergers and acquisitions identification at least once a year to produce a Strengthen equipment maintenance management and optimize environmental protection management to list of climate-related risks and opportunities.reduce compliance costs and ensure stable operation Perform quantitative and qualitative analyses of risks and opportunities including frequency of Comply with climate-related policies and regulations track industry policies and promptly conduct research Response Measures for Risks and occurrence and risk level.Policy and Legal and analysis on relevant policies involving this risk Opportunities Risks Improve energy management system and dual carbon management system and regularly inspect environ- For identified material climate-related risks and 02 mental protection work opportunities analyze their impacts on the disclos- Strengthen climate risk response strategies and ing entity’s business operations and the resulting 03 complete the Key Risk Management Plan Form.Technological Regularly assess technological development trends within the industry formulate technology introduction financial implications. Regularly monitor the progress of risk management Risks and upgrade plans and conduct feasibility assessments and process controlTransition Based on the analysis results evaluate whether and control improvements and assess the effective-measures need to be taken for risks and opportu- Risks ness of implemented response measures.nities and promptly revise the Record Sheet for Research alternative raw materials Identification Analysis Evaluation and Response Market Risks Explore strategic business cooperation models Measures of Risks and Opportunities.Proactively monitor customer needs and maintain close communication with customers Reputation Risks Regularly disclose climate risk management status and strengthen communication with all stakeholders Risk and Opportunity Management Process 66 67Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Addressing Climate Change Targets and Indicators Case Study Clean Energy Replacement Disclosure Item Unit 2024 YIFI Laser is comprehensively promoting the use of clean energy for power generation. By installing PV power stations on the factory rooftops we not only meet energy needs but also feed surplus electricity into the grid gradually reducing the reliance on traditional energy sources. In the Total greenhouse gas emissions tCO2e 84.55 future we will continue to advance PV power generation and consider incorporating PV energy storage to achieve a dynamic balance between (Scope 1) power generation energy storage and electricity consumption. This will ensure a stable energy supply during extreme weather conditions or peak Total greenhouse gas emissions electricity usage periods further enhancing the self-sufficiency rate of clean energy and energy utilization efficiency.(Scope 2) tCO2e 1010.48 We have a total of two distributed PV projects with a combined installed capacity of 1258.48 kW. During the reporting period we self-consumed Total greenhouse gas emissions 958329.29 kWh of PV-generated electricity accounting for 77.53% of the total PV power generation. This is equivalent to reducing carbon dioxide (Scope 1+2) tCO2e 1095.03 equivalent emissions by 514.24 tons.Greenhouse gas emission intensity tCO2e/RMB 10k revenue 0.016 Strengthening Energy Management YIFI Intelligent PV Project Jiangsu YIFI PV Project YIFI Laser and its subsidiaries primarily consume energy resources including purchased electricity PV power generation natural gas gasoline and diesel during the production and operations. We strictly adhere to energy-related laws and regulations such as the Energy Conservation Law of the People's Republic of China formulating the Energy Conservation and Consumption Reduction Control Procedure and following the principle of "expanding sources Optimizing Resource Utilization and reducing expenditures giving equal importance to development and conservation with priority given to energy conservation". We continuously improve the energy management system are committed to reducing energy YIFI Laser has established a comprehensive resource management system. Through innovative management approaches we continuously consumption actively adopt energy conservation and emission-reduction promote the efficient utilization and recycling of various resources.measures promote the use of clean energy optimize production processes Electricity Conservation Signage and enhance energy utilization efficiency.Water Resource Management Strengthen the technological transformation of electrical equipment and gradually phase out and upgrade pro- Energy-efficient fluorescent tubes are used for lighting in Our water supply is entirely sourced from the municipal water supplies. We attach cesses and equipment with high power consumption both office areas and factory premises great importance to the sustainable utilization of water resources and strictly comply Energy with relevant laws and regulations such as the Water Law of the People's Republic of Operate electrical equipment in line with actual work Conservation Strengthen manual control during non-working hours to China and the Law of the People's Republic of China on the Prevention and Control of conditions turning them on only when needed to prevent Management idle operation reasonably regulate lighting in office areasMeasures Water Pollution. We formulate reasonable water-use plans continuously strengthen water resource management use water conservation appliances and conduct regular Implement centralized control over the use of air condi- inspections of taps and valves to reduce water waste caused by leaks or drips. We also tioners in office areas. Set the temperature to above 26℃ Make full use of the roof space of the factory buildings to install distributed PV power stations for power generation post water conservation signage in office areas to encourage employees to save water.in summer and under 22℃ in winter Water Conservation Signage 68 69Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Packaging Material Management Ecosystem Protection YIFI Laser integrates the concept of circular economy throughout the entire product lifecycle continuously promoting the conservation of raw materials and the reduction of packaging materials. We disassemble collect and recycle the packaging boxes of incoming materials and YIFI Laser strictly complies with the biodiversity-related laws and ecological protection red-line requirements in the locations where it operates purchased equipment. We reuse pallets shelf material boxes and turnover boxes further reducing resource waste. avoiding the establishment of factories or the conduct of business activities in biodiversity-sensitive areas. To minimize the impact on ecosystems during the construction and operation of office buildings we actively carry out landscaping and planting of native plants to protect the biodiversity within our facilities.Reuse of Material Turnover Boxes Recycling of Incoming Material Boxes Compliance with Three Wastes Discharge The main pollutants generated during the production and operation processes of YIFI Laser and its subsidiaries are domestic sewage and solid wastes such as domestic garbage. We strictly adhere to national environmental protection regulations formulating and implementing procedural regulations including the Exhaust Gas and Wastewater Control Procedure the Noise Control Procedure and the Waste Management Control Procedure continuously optimizing the management system to ensure environmental compliance and reduce environmental impacts.Waste Gas Management Since the main production processes involve the assembly and commissioning of machinery equipment and related modules almost no waste gas pollutants are generated during production. We primarily consider kitchen fumes from the canteen and road dust. We conduct regular inspections of the exhaust flues and fans for gas and waste emissions. Any faults are promptly repaired and eliminated and regular maintenance is carried out. When sweeping roads we use water to reduce dust. We also require engineering contractors to avoid dust generation at construction sites supervise and inspect the waste gas management situation.Wastewater Management Key Performance Indicators During the reporting period The wastewater is mainly domestic sewage which is connected to the municipal sewage pipeline network and centrally treated by the municipal 2 wastewater treatment facilities. ·? As of the end of the reporting period the green coverage area exceeded 6785 m Waste Management We classify and properly dispose of various wastes according to regulations to prevent environmental pollution. Solid wastes are mainly domestic garbage which is classified as general solid waste. After unified collection the domestic garbage is transported and disposed of by the local environmental sanitation department. 70 7104 Sustain: Upholding Responsibility Talent is the core driving force for an enterprise's high-quality development while responsibility serves as the crucial foundation for its sustainable operation. YIFI Laser has always adhered to the development philosophy of "people-oriented striving for goodness". We respect the value of employees safeguard their rights and interests and care about their growth and well-being. We are committed to creating a fair just united mutually supportive safe and orderly workplace ecosystem offering a dignified promising and warm professional journey. Meanwhile as a corporate citizen YIFI Laser actively engages in industry collaboration and social welfare initiatives.We promote win-win cooperation participate in community construction care for vulnerable groups and fulfill our solemn commitments to society. We believe that an enterprise's success lies not only in its technological and market leadership but also in its responsibility and actions to create value for employees and bring benefits to society. 74 Employee Rights and Benefits 76 Employee Training and Development 80 Workplace Safety and Health 85 Employee Care and Engagement 87 Industry Cooperation and Development 91 Social Welfare and Charity Contributing to the UN SDGsWuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Employee Rights and Benefits Key Performance Indicators During the reporting period YIFI Laser consistently adheres to the talent philosophy of "people-oriented" combining it with the corporate culture of "professionalism ·? Number of employees: 1000 ·? Labor contract signing rate: 100% efficiency and collaboration". We continuously optimize talent employment mechanisms safeguard employees' basic rights and interests build a ·? Ethnic minority employees: 17 ·? Demobilized military veterans: 5 diverse and inclusive working environment and create a professional atmosphere that fosters a sense of belonging and motivation.Equal Employment Compensation and Benefits YIFI Laser strictly abides by national laws and regulations such as the Labor Law and the Labor Contract Law. We have formulated and YIFI Laser has formulated a scientific compensation management system in accordance with relevant national laws and regulations considering implemented the Employee Handbook which covers key aspects including recruitment hiring labor contract management attendance systems local and industry salary levels as well as factors such as employee job levels positions and performance evaluations. Through compensation and holiday arrangements and explicitly prohibits the employment of child labor. We adopt diverse employment forms including full-time employees benefit policies like equity incentives and performance bonuses we aim to maximize employee motivation and arouse their work enthusiasm and outsourced employee and hourly workers. Among them non-full-time employees are uniformly dispatched by third-party labor service creativity. A multi-layered compensation and incentive system covering monthly annual and long-term aspects has been established: companies which are also responsible for salary and insurance payments ensuring compliant implementation of relevant rights and interests and providing institutional guarantees for employment. Monthly Compensation Annual Incentives Special Awards Long-term Incentives Centering around the organizational construction goal of "efficient and professional" YIFI Laser adheres to a talent strategy of being "small but excellent". By combining internal selection with external recruitment we optimize the organizational structure and promote highly matched Comprises basic salary per- Include performance-based Project incentives are set up Completed a round of equity job placements. Meanwhile we meet flexible production line requirements through project-based employment and establish a re-employment formance pay position al- year-end bonuses with for patent applications man- incentives (employee stock lowance welfare subsidies company-wide bonus pool agement improvements 5S ownership + strategic place- mechanism to ensure continuity of key experienced positions. Gradually we have formed an employment system with full-time employees at the and attendance bonus. calculation followed by de- excellence evaluations and ment).core and flexible employment as a supplement. During the reporting period the annual turnover rate of core positions was controlled within 3% partmental redistribution. technological R&D.and the organizational structure remained stable.For compensation distribution YIFI Laser adheres to the principle of "performance-oriented ensuring fairness". The annual turnover rate of core Faced with the current talent structure dominated by male employees and those with engineering backgrounds we are consciously promoting employees is controlled within 3% continuously enhancing employee stability and a sense of belonging.structural optimization gradually increasing the proportion of female employees advancing gender equality and job diversity and fostering an inclusive organizational culture.As of the end of the reporting period YIFI Laser had 1000 employees with the following employee structure: Democracy and Communication 4.6% By education YIFI Laser attaches great importance to fostering employee participation and establishing effective communication mechanisms. We have set 16% By gender up employee suggestion boxes to collect opinions and suggestions. Additionally we regularly organize employee symposiums and conduct 17.7% Master and above 46 administrative service surveys to listen to feedback from junior staff. This forms an internal closed-loop management mechanism that strengthens Female 160 35.9% Bachelor 359 two-way communication between management and employees. 84% Male 840 41.8% College 418 行政服务工作调查问卷公示 Below College Level 177 行政服务工作调查问卷旨在全面评估公司行政服务的效率与质量，了解员工对行政后勤管理及相关服务的满意度。通过收集反馈，我们希望识别出当前行政管理工作中的优势与不足，从而为后续的改进措施提供依据。2025年1月抽调对象各部门助理及助理群内线上问卷，共收集问卷数量21份，此次问卷调研中收取如下有效建议，相关解决措施如下公示： 1. Q：员工反映食堂在用餐时段的菜品准备不足，食堂菜色少、早餐样式越来越少 由于就餐时间比较集中，中午紫薇餐厅称菜区在5～10分钟内完成约300人的购餐，所以菜品消耗较快，但在营业时间内会有其他餐线可供购买，窗口人员保障服务。行政部同步要求食堂适当增加菜品准备量，确保员工在用餐时段都能吃到热饭菜。 1.4% 食堂近期在对早餐的种类在进行调整，尝试新品。3月起更换30%的品种，按照15天内品类更新15%轮线出品。2、Q：食品安全问题及碗具清洗问题 By employee professional 食堂餐具清洗后经工业洗碗机100度以上高温消毒，可能会存在部分碗具使用时间较长发黄情况，餐厅会及时进行换新。行政部每周对餐厅进行抽查，并将食品异物、环By age 2.1% 境的相关项目纳入月度考核项目，也请员工共同参与监督。3、Q：空调定期清灰9.2% composition category 空调年度清洗于每年5月份实施，届时将提前公示清洗时间与相关注意事项。4、Q: 优化假期通知流程 人力资源部根据公司业务情况尽量提前发布。10% 5、Q：宿舍的木板床发出噪音，影响了员工的睡眠质量7.2% 员工可在钉钉OA审批－行政管理－总务保修提起保修单，行政部安排检查和维修、木板床，减少噪声，提升员工的睡眠质量。 6、Q：开展员工活动 Production personnel 385 2025年企管中心与市场中心联合制定全年活动计划，按照相关计划推进活动安排，丰富员工文娱，敬请积极参与。Over 50 14 7、Q：外来人员有效管理问题点：1.外来人员入厂，特别是拜访车间的人员，车间无法实施唯一入口管理，存在安防风险隐患。2.外来人员身份识别困难。 外来人员管控从门岗唯一入厂管理实施，初步身份识别进行登记并发放访客登记牌，38.5% 对需要进入车间人员进行手机封膜（车间前台对进入车间的外来人员进行身份验证及手Technical personnel 430 机封膜检查）。无有效标识人员各区域前台可礼貌拒绝并核实身份，若异常及时与行政44.7% 部安全负责人联系。 再次感谢各位提供的宝贵意见及建议！我们将对所有问卷进行认真地统计分析，并41 to 50 100 采取积极有效措施，力求提升公司的行政管理工作服务水平。也欢迎各位同事对我们的工作进行监督与提醒！43.9%企管中心 43% Sales personnel 72 2025年2月20日 行政服务工作调查问卷 （2025年2月） 31 to 40 439 长按二维码识别 Financial personnel 21 Under 30 447 Administrative personnel 92 Employee Suggestion Box Employee Representative Symposium Public Notice of Surveys 74 75Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Employee Training and Development Performance Evaluation and Grievance YIFI Laser has established a performance management system centered on strategic drivers capability development and value orientation YIFI Laser has constructed a talent development system based on job sequence management driven by performance evaluation and centered encompassing goal setting assessment and feedback throughout the entire employee lifecycle. The performance management approach around capability building. We are committed to creating an organizational mechanism where talent growth resonates with enterprise integrates the Balanced Scorecard (BSC) and Key Performance Indicator (KPI) methodologies to deeply align individual employee goals with development continuously promoting mutual empowerment between employees and the Company. organizational strategy. The assessment system combines monthly and annual evaluations comprehensively assessing employees' performance in areas such as business outcomes capabilities and competencies organizational alignment and continuous growth. Evaluation dimensions are Employee Promotion and Development flexibly adjusted based on job characteristics to enhance the relevance and effectiveness of performance results.To ensure the fairness and credibility of performance assessments we have implemented a calibration mechanism for evaluations and formal YIFI Laser clearly distinguishes between dual-track career development paths: the professional track and the management track. A promotion grievance procedures guaranteeing that results are horizontally fair and vertically consistent within the organization. Employees can provide and evaluation mechanism oriented towards job capabilities and value creation has been established. Through job standards qualification feedback and lodge grievances regarding their performance results through formal channels reinforcing the openness transparency and results- requirements and promotion evaluation methods covering various functional sequences we continuously optimize talent structure and enhance orientation of performance communication. Performance results are not only utilized for incentive distribution but also serve as a crucial basis for the quality of talent succession planning for key positions. At the organizational level the Company coordinates and advances the "Nestling Eagle talent identification training planning and career development management thereby constructing an integrated performance application system - Flying Eagle - Golden Eagle" three-stage talent cultivation project. Around job value capability potential and strategic alignment a multi-tiered that combines "evaluation development and utilization".talent pool is constructed. Through diverse talent identification methods and growth paths structured and systematic talent supply is achieved.The internal job rotation mechanism as an important part of cadre training is closely linked with job promotions and capability development Level Key Contents enhancing cross-boundary organizational collaboration and talent adaptability.Strategic Level BSC (Balanced Scorecard) strategic alignment goal setting implementation of key performance indicators (KPIs) Management Level Monthly/annual performance assessments evaluation of capabilities Expert Executive Level and value dimensions talent inventory Support and Assurance Level Calibration mechanisms feedback and communication grievance handling application of performance results Senior Engineer Senior Management Performance Management System Intermediate Engineer Middle Management Employee Empowerment and Training Guided by the core principles of "role-driven strategy-oriented and categorized and layered" YIFI Laser has constructed an institutionalized and systematic employee training and empowerment mechanism. The training system encompasses key elements such as curriculum planning Junior Engineer Junior Management instructor management resource allocation and effectiveness evaluation. We have formulated the Annual Training Plan and Training Management System to provide normative support forming a closed-loop training management process that is organized goal-oriented and evaluation-based.Aligned with the full employee lifecycle and organizational development stages we have established a layered and categorized training system that Reserve Engineer Management Trainee covers the onboarding of new employees in-post capability enhancement comprehensive quality cultivation for managers and growth support for high-potential talents. The training system is deeply integrated with job sequences career paths and performance management promoting the alignment of employee capability improvement with organizational goals. Through the synergy of online "Zhuoyi Academy" platform and offline brand courses combined with job training maps and career development paths we have constructed a multi-scenario and multi-level learning platform.YIFI Laser continues to advance the internal instructor system and collaborate with external faculty to enrich the supply of training resources. We also incorporate the achievement of training objectives into the performance management process enabling systematic management and results- Professional Development Pathway | Management Development Pathway orientation of training initiatives. During the reporting period the Company completed multiple special training programs focusing on key groups such as middle managers business backbones and high-potential personnel achieving full coverage targets and positive feedback thereby Dual-Track Career Development System enhancing organizational learning capabilities and employee development momentum. 76 77Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Three-Eagle Training Program Training Targets Main Training Methods Corresponding Objectives Key Performance Indicators New Employees Onboarding training camp Mentorship system Integrate into the organization understand During the reporting periodsystem training the rules become competent in the position Nestling Eagle ·? Employee training coverage rate: 100% ·? Total employee training hours: 8350.75 Junior Employees Skill enhancement qualification certification job Improve competency accumulate experi- ·? Average training hours per employee: 8.35 ·? The number of employees trained: 2844rotation practice ence Flying Eagle Middle Managers Youth training camp project management com- Strengthen management capabilities under-munication and collaboration training take higher responsibilities Golden Eagle Senior Managers External forums MBA support strategic seminars Strengthen strategic thinking lead organiza-tional development YIFI Laser incorporates professional title evaluation and occupational qualification certification as important components of the employee capability development program. Through institutionalized application organization policy guidance and resource support we encourage Employee Training System employees to achieve continuous growth in their professional paths. We focus on engineering technology and frontline skilled positions coordinating the recognition of professional titles and skill levels and improving the closed-loop management system of "training - practical operation - evaluation - certification". We are gradually establishing a professional capability evaluation mechanism that covers core positions.Meanwhile we actively explore collaborations with human resources and social security departments to develop occupational qualification pathways promoting standardized and visible career development and enhancing talent professionalism.YIFI Laser "General Laser Product Explanation and Process Application Training" Jiangsu YIFI Optical Fiber Insertion & Extraction Training Jiangsu YIFI Motion Mechanism Assembly and Wiring Process Training New Cohesion Energy Trend Project Training 78 79Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Workplace Safety and Health Safety Visualization Construction YIFI Laser consistently adheres to the management principle of "safety first prevention-oriented" and has established a comprehensive well- Before Rectification After Rectification Before Rectification After Rectification structured and rigorously enforced safety production and occupational health management system. We have set the occupational safety and health management objectives of "zero fatal accidents and zero occupational hazard accidents" continuously enhancing the intrinsic safety level to safeguard employees' lives physical health and mental well-being.Workplace Safety Management YIFI Laser has established an occupational health and safety management system that covers the headquarters business centers and subsidiaries and has obtained ISO 45001 occupational health and safety management system certification. Each year we organize internal audits and continuous improvement initiatives for the system. We integrate quality environmental and occupational health and safety management into Equipment electrical box lacks usage Equipment electrical box now displays Support column missing reflective Reflective stickers added to support a unified operational framework forming a comprehensive management system coordinated by the EHS Committee and jointly advanced by instructions responsible person and operating instructions and clearly marks stickers column department labels circuit usage guidelines and responsi- various centers and subsidiaries. During the reporting period YIFI Laser initiated the construction of a safety production standardization system ble party gradually incorporating safety performance into the operational management evaluation system. Each business unit has designated full-time or part-time safety officers responsible for implementing various safety systems maintaining records conducting routine inspections and ensuring Before Rectification After Rectification Before Rectification After Rectification closed-loop rectifications to guarantee the effective execution of management measures.Safety Hazards Prevention YIFI Laser constructed a closed-loop safety management mechanism of "Plan - Do - Check - Act" encompassing the entire process from system construction hazard identification special rectifications education and training to emergency drills. We implement 5S management and safety visualization construction enhancing on-site management levels through measures such as area identification setting up warning lines and equipment protection modifications. Forklifts in workshops have been fully equipped with warning radars and safety light curtains. Key equipment is designed with features such as two-hand start safety locking and radiation protection. The fire-fighting equipment and fire exit The fire-fighting equipment and fire exit Pedestrians and logistics vehicles are not Logistics passages have been planned passages are obstructed with no usage passages unobstructed with prominently separated in the workshop aisles in the workshop with separate paths for guidelines displayed fire hydrant usage guidelines pedestrians and vehicles Plan Do Check Act A three-tier mechanism of "daily inspections by departments weekly inspections by centers and monthly inspections" is implemented for routine safety checks. The inspection scope covers key areas such as the work environment facilities and equipment electrical safety and fire management. Any identified hazards are promptly addressed through closed-loop rectification. Meanwhile dedicated spots for protective Hazard Identification Rectification Measures Effectiveness Review System Optimization equipment are set up in workshops equipped with safety helmets safety ladders fire extinguishers emergency medicines winter warmth- keeping supplies etc. to enhance the response capability at the work site.Safety Management Closed-Loop Mechanism In terms of safety improvement we promote multiple safety-specific enhancement projects each year including laser equipment upgrades and optimization of hazardous chemicals storage. These efforts drive the transformation of safety management from passive prevention and control to proactive prevention. 80 81Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Case Study 2024 "Safety Production Month" Campaign In June 2024 centered around the theme of "Everyone Talks Safety Everyone Knows Emergency Response" YIFI Laser organized a series of "Safety Production Month" campaigns to comprehensively strengthen employees' safety awareness and emergency response capabilities. The campaign was uniformly deployed by the EHS Committee with the Administrative Department taking the lead in organization covering the headquarters and all business units.At the kick-off meeting middle and senior management of the Company signed safety target responsibility agreements clarifying job-specific safety responsibilities and management objectives. Safety education and training were conducted in a dual mode of "offline explanation & Safety Helmet Storage Area Forklift Equipped with Distance Alarm and Zone Warning Lights online platform". Through the "Zhuoyi Academy" platform all employees were organized to learn the hidden danger identification system and operational skills. On-site procedure explanations and practical drills were carried out in workshop frontlines to ensure that the training content was closely tailored to job positions and reached every individual.During the campaign YIFI Laser organized multiple emergency drills including a fire evacuation drill at the research institute a forklift accident drill at the manufacturing center a mechanical injury drill at the engineering center and an elevator entrapment response drill in the industrial park. These drills covered various scenarios and departments comprehensively honing emergency response capabilities. All departments conducted hazard identification and safety hidden hazard inspections rectifying issues against records within specified deadlines. The closure rate of rectifications reached over 98% further enhancing the on-site intrinsic safety level. Fire Drill Fire-Fighting Facilities Location Map Workshop Emergency First-Aid Kit Safety Training and Drills YIFI Laser formulates an annual safety training plan covering all employees and key positions integrating centralized awareness campaigns scenario-based drills and hands-on training during the "Safety Production Month." The content encompasses laws and regulations job-specific safety and emergency response. During the reporting period we organized and implemented multiple corporate and departmental-level Forklift Emergency Accident Drill Elevator Entrapment Drill Mechanical Injury Drill emergency drills covering the headquarters the engineering center the manufacturing center the research institute and various subsidiaries.To enhance interactivity and the effectiveness of knowledge transfer we innovatively The drills involved fire evacuation the use of fire extinguishers and fire hydrants cardiopulmonary resuscitation (CPR) and the handling of organized a "Safety Knowledge Spot-the-Error Competition". Through the form of sudden equipment malfunctions achieving a 100% training coverage rate. Laboratories were equipped with dedicated explosion-proof devices identifying hidden dangers in pictures employees were guided to grasp key points hygrometers oxygen concentration detectors heat-resistant suits and fire prevention equipment to enhance risk control capabilities in high-risk areas. of risk identification from practical scenarios. A total of 17 safety improvement proposals were collected from frontline business operations and have been Training/Drill Type Coverage Target Implementation Frequency incorporated into the annual improvement plan.Safety Production Month Knowledge Competition Safety Production Month Training All employees June every year Job-Specific Training Special operation personnel laboratory staff Conducted continuously Key Performance Indicators Fire Drill All employees (headquarters & subsidiaries) Annual & irregular intervals During the reporting period Emergency Response Drill Departments (manufacturing R&D Quarterly or semi-annually ·? Conducted 4 safety emergency drills ·? Safety training coverage rate reached 100%engineering) ·? Hazard identification and rectification rate exceeded 98% Equipment Operation Safety Training Operators maintenance personnel Organized when new equipment is launched Safety Training and Drill System Diagram 82 83Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Occupational Health and Employee Well-being Employee Care and Engagement YIFI Laser prioritizes occupational health in daily management. Through annual health examinations occupational disease screenings and job risk assessments we comprehensively grasp employees' health status. For high-risk positions we provide professional protective equipment. In critical YIFI Laser prioritizes integrating employee care into daily management aiming to enhance employees' sense of belonging and organizational areas such as laboratories and locations with laser equipment dedicated protective systems are installed in accordance with national standards. cohesion through multi-tiered and diverse welfare benefits. While placing importance on universal welfare we also pay attention to the We also pay attention to employees' mental health delivering psychological support services through labor union and third-party resources such differentiated needs of employees from various ethnic and cultural backgrounds gradually enriching the welfare offerings and expanding as health lectures emotional management and stress-relief activities. For radiation protection we have established a radiation safety management coverage. We have established a comprehensive welfare system including six major categories: statutory benefits daily subsidies health care system and emergency response plans. A special leading group has been set up to ensure that positions using equipment such as lasers and cultural activities special welfare and assistance for those in need: ultraviolet light comply with the national protective standards. All relevant facilities have passed inspections and registration.Statutory Benefits Provide employees with the five social insurances and housing provident fund as stipulated by national regulations annual leave marriage leave maternity leave paternity leave and bereavement leave.Health Monitoring： Personal Protection： Annual physical examinations occupational Equip employees with appropriate PPE tailored to Allowances and Transportation allowances working meal subsidies communication allowances seniority-based subsidies perfect disease screenings their job roles such as earmuffs gloves masks etc. Subsidies attendance bonuses festival benefits and project subsidies.Psychological Support： Health Support Arrange annual health check-ups for employees and regularly conduct health seminars.Labor union lectures health counseling stress-relief Environmental Control： activities for employees and introduce third-party Ventilation equipment laser radiation protection psychological service resources in some industrial laboratory explosion-proof systems parks Organize team-building activities trips basketball matches badminton club activities.Cultural Development Offer humanistic care such as birthday wishes customized birthday meals and festival gifts.Occupational Health Assurance Mechanism Special Welfare Establish a talent subsidy system provide employee dormitories and free shuttle bus services and offer discounted health check-ups for employees' families as well as recommendations for educational resources for their children.Assistance for Set up a hardship assistance fund to provide financial aid to employees facing economic difficulties due to major Those in Need illnesses or accidents.Case Study Official Launch of the New Residential Area at Jiangsu YIFI During the reporting period the new residential area at Jiangsu YIFI was officially launched further improving the supporting facilities for employees' daily lives and enhancing their working and living environment. The new residential area is equipped with a staff canteen garden-style public rest spaces and multi-functional sports facilities including standard basketball and badminton courts enriching employees' leisure time and promoting their physical and mental well-being. Regarding catering services we have designated a daily staff dining area. Meanwhile based on employee feedback the canteen's menu structure has been optimized to offer a wider selection of dishes improve nutritional balance and flavor satisfaction significantly enhancing the overall dining experience and strengthening employees' sense of identity and belonging to the corporate environment.New Cohesion Health Lectures Specialized Air Conditioners and Fans in the Workshop Jiangsu YIFI New Residential Area Garden Badminton Court and Basketball Court 84 85Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility YIFI Laser consistently adheres to lawful and compliant employment respects employee diversity and actively implements policies promoting ethnic equality. In daily management we prioritize creating a fair and inclusive work environment for employees from all ethnic backgrounds fostering a corporate culture characterized by unity mutual assistance and harmonious progress.Case Study YIFI Laser Recommended as "Advanced Collective for Ethnic Unity and Progress in Hubei Province" In February 2025 YIFI Laser was recommended by the Ethnic and Religious Affairs Commission of Hubei Province as an "Advanced Collective for Ethnic Unity and Progress in Hubei Province". This honor acknowledges the Company's efforts in implementing ethnic policies safeguarding the equal rights and interests of ethnic minority Goddess Festival Event employees and fostering a harmonious work environment.Notice on the Recommended Entities for the Title of "Advanced Collective for Ethnic Unity and Progress in Hubei Province" Industry Cooperation and Development Autumn Hiking Activity for Female Employees in Xishan District New Cohesion Outdoor Green Health Team-Building Activity Adhering to an open and win-win approach YIFI Laser has deeply integrated itself into the industry's development ecosystem by establishing strategic partnerships with industrial chain partners engaging in industry-university-research project collaborations participating in industry associations taking the lead in standard formulation and organizing or participating in technical seminars. During the reporting period YIFI Laser officially entered into a strategic cooperation with Songshan Lake Materials Laboratory to further explore the industrialization paths for new materials processes and equipment for lithium batteries. Additionally New Cohesion signed a strategic cooperation agreement with Schneider Electric with both parties pooling their strengths to jointly construct demonstration projects related to intelligent manufacturing.Collaborating Institution Huazhong University of Science and Technology Program Municipal Key R&D Program—Industrial Foresight New Cohesion Hiking Activity on the Ancient Trail of Junzhang Mountain Jiangsu YIFI "YIFI Cup" Basketball Match Category and Common Key Technologies Program Category Ezhou City Science and Technology Program Project Key Technology Research and Application of High-Pre- Name cision Laser Five-Axis Welding Intelligent Equipment Key Technology Research on Scanning Point-Ring Laser Project Welding for Large Cylindrical Lithium Battery Module Achieve efficient operation linkage and modularized Name Busbars Project flexible mechanism intelligent system integration Content along with multi-dimensional online detection of laser Complete the upgrade optimization and integrated precision welding quality Project debugging of high-power point-ring lasers and laser Content scanning welding systems accomplish pilot testing and acceptance of newly developed technologies Collaborating Institution Zhenjiang HIT High-End Equipment Research Institute Jiangsu University Jiangsu YIFI Retirement Ceremony Selected Industry-University-Research Collaboration Projects During the Reporting Period 86 87Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Case Study YIFI Laser and Songshan Lake Materials Laboratory Officially Established Strategic Cooperation Standards Formulation YIFI Laser actively contributes to drafting industry standards. As of the end of the reporting period we have participated in the compilation of a total From October 16 to 18 the 5th China New Materials Industry Development of 43 standards including 2 national standards 22 group standards and 19 enterprise standards.Conference hosted by the Chinese Materials Research Society took place in the Wuhan Economic and Technological Development Zone. At the event a strategic cooperation signing ceremony was held between YIFI Laser and Participation in Industry Associations Songshan Lake Materials Laboratory. The strategic collaboration aims to focus on the core development needs and ecological construction goals of the new YIFI Laser actively engages in industry associations taking on roles such as Council Member and Deputy President to proactively contribute insights energy battery industry. By leveraging the scientific research strengths of Songshan Lake Materials Laboratory and YIFI Laser's precision laser processing and recommendations for industry development. We facilitate the formulation and implementation of industry-friendly policies effectively serving expertise the parties will jointly develop novel structured electrodes and laser as a bridge to promote win-win cooperation within the industry.micromachining technologies based on the YIFI Laser Engineering Technology Research Institute platform. This partnership will accelerate breakthroughs in Strategic Cooperation Signing Ceremony between YIFI Laser and Songshan Lake Materials Laboratory Association Participating Body Membership Levelkey solid-state battery processes and commercialization.China Welding Association Wuhan YIFI Laser Co. Ltd. Executive Council Member Deputy Chairman Unit Hubei Laser Industry Association Wuhan YIFI Laser Co. Ltd. Deputy President Unit Wuhan Laser Association of Optics Valley of China Wuhan YIFI Laser Co. Ltd. Deputy President Unit Hubei Mechanical Engineering Society Wuhan YIFI Laser Co. Ltd. Executive Council Member China Machinery Industry Federation Wuhan YIFI Laser Co. Ltd. Member Hubei Software Industry Association Wuhan Dayan Software Co. Ltd. Member China Industrial Association of Power Sources Wuhan YIFI Laser Co. Ltd. Member Exhibition of Signed Strategic Partnership Agreements (New Cohesion) 88 89Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Promoting Industry Exchange Social Welfare and Charity During the reporting period YIFI Laser participated in 24 domestic and international industry exhibitions promoting in-depth exchanges and collaboration across the industrial chain through product demonstrations technical seminars and business YIFI Laser demonstrates a strong commitment to supporting the education and fostering students' learning and development through donations negotiations. Meanwhile we actively engaged in multiple summit forums sharing industry insights and practical expertise to of materials and funds. We are deeply committed to social welfare undertakings focusing on areas such as education health and poverty drive technological advancement and foster ecosystem synergy. alleviation giving back to society through charitable donations and other means.Partial Exhibitions and Forums Participated in During the Reporting Period In 2022 Jiangsu YIFI participated in the "Party Building Leads the Way Dreams Take Flight" charity student aid activity organized by the Zhenjiang New Area Aerospace Industry Park donating RMB 20000 to support the development of the local education. In 2023 YIFI Laser donated 60000 bottles of mineral water with a total value of RMB 54000 to the 16th Hubei Provincial Middle School Games providing refreshing support for student athletes. Additionally we donated school supplies to underprivileged students at Mayidui Central Primary School in Linxiang District Lincang City Yunnan Province helping them to better complete their studies.In 2024 YIFI Laser has continued to strengthen the efforts in supporting education through social welfare actively engaging in the field of charity and philanthropy. In July we donated student reading textbooks to the Wuhan East Lake High-Tech Development Zone Charity Federation to support the extracurricular reading expansion of all students at the Affiliated Primary School of Huazhong University of Science and Technology.helping children to enrich their knowledge base broaden their horizons and cultivate reading interests and learning abilities. In November we made another donation to the Wuhan East Lake High-Tech Development Zone Charity Federation providing student grants to support the development of local education and other public welfare undertakings contributing to the improvement of educational conditions and promoting the fairness and accessibility of educational resources.ESIE 2024 International Energy Storage Summit & Exhibition The 17th High-Tech Lithium Battery Industry Summit Key Performance Indicators During the reporting period ·? The total donation amount was approximately RMB 166500 ·? In July donated 4118 student reading textbooks (valued at RMB 66502.3) to the Affiliated Primary School of Huazhong University of Science and Technology.·? In November donated RMB 100000 to the Wuhan East Lake High-Tech Development Zone Charity Federation CeMAT2024 Asia International Logistics Technology and Transportation CBIS 2024 9th International Summit on Power Battery Applications Systems Exhibition 2024 High-Tech Lithium Battery Annual Conference Optics Valley Laser Industry Chain Development and Innovation Conference 90 91Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Key Performance Table Environmental Performance Indicator Unit 2024 Financial Performance Environmental Compliance Management Environmental violations and penalties Case(s) 0 Indicator Unit 2022 2023 2024 Environmental protection investment RMB million 1.18 Revenue RMB million 538.96 697.20 692.07 Water Resource Management Total assets RMB million 1349.03 2475.91 2822.62 Total water consumption Tonne(s) 88240 Net profit attributable to shareholders of Energy Management the parent Company RMB million 93.89 101.12 24.33 Natural gas consumption m3 10619 Tax paid RMB million 29.27 30.91 18.73 Gasoline consumption L 15901 Amount paid for share repurchases (excluding transaction fees) RMB million - - 83.07 Diesel consumption L 10377.05 Total cash dividends distributed (tax Purchased electricity MWh 1883.11 included) RMB million - 31.05 12.20 Self-consumed PV electricity MWh 958.33 Addressing Climate Change Governance Performance Scope 1 GHG emissions tCO2e 84.55 Scope 2 GHG emissions tCO2e 1010.48 Indicator Unit 2024 Total greenhouse gas emissions（Scope 1+Scope 2） tCO2e 1095.03 Board & Committee Governance Greenhouse gas emissions intensity（Scope 1+Scope 2） tCO2e/ RMB 10k revenue 0.016 Number of board members Person(s) 9 Note: 1.The calculation method for greenhouse gas emissions refers to the General Principles for Comprehensive Energy Consumption Calculation (GB/T 2589-2020) and 2006 IPCC Guidelines for National Greenhouse Gas Inventories with carbon dioxide equivalent emissions calculated based on Global Warming Potential (GWP) Number of independent directors Person(s) 3 values. Scope 2 emissions calculated using location-based method with grid emission factors from Announcement on China's Regional Grid CO Emission Factors (2022)_ issued by the Ministry of Ecology and Environment. Proportion of independent directors % 33.33 2.As the Company acquired a 51% stake in Wuxi New Cohesion Technology Co. Ltd. on June 27 2024 New Cohesion has become a controlling subsidiary of the Company.The statistical time frame for its environmental performance data is from July to December 2024.Board meetings held Number 7 Number of proposals reviewed by the Board of Directors Number 36 Social Performance Shareholders' meetings held Number 3 Number of proposals reviewed by the Shareholders' General Meeting Number 15 Indicator Unit 2024 Supervisory Committee meetings held Number 4 Employee Rights Number of proposals reviewed by the Supervisory Committee Number 17 Labor contract signing rate % 100 Disclosure announcements issued Number 106 Employee Employment Investor Relations Management Total employees Person(s) 1000 Interactive platform responses Number 104 ——By gender Investor hotline sessions Number 74 Male Person(s) 840 Investor roadshows conducted Number 30 Female Person(s) 160 Inquiry/complaint resolution rate % 100 ——By age Business Ethics 50 years and above Person(s) 14 41 to 50 years Person(s) 100 Concluded corruption lawsuits filed by regulatory authorities against the Company or the employees Case(s) 0 31 to 40 years Person(s) 439 Unfair competition litigation/material penalties Case(s) 0 30 years and below Person(s) 447 92 93Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Social Performance 指标 单位 2024 年 Indicator Unit 2024 Occupational Health and Safety Safety training coverage rate % 100 ——By education Total safety training hours Hour(s) 27 Master's degree and above Person(s) 46 Contractor work-related injury incidents Case(s) 0 Bachelor's degree Person(s) 359 Contractor work-related injuries Person(s) 0 College diploma Person(s) 418 Below college diploma Person(s) 177 Contractor work-related fatalities Case(s) 0 ——By professional category Fatalities in contractor accidents Person(s) 0 Production personnel Person(s) 385 Coverage rate of occupational health examinations % 100 Technical personnel Person(s) 430 Employees diagnosed with occupational diseases Person(s) 0 Sales personnel Person(s) 72 Supply Chain Management Financial personnel Person(s) 21 Total number of suppliers Number 1000+ Administrative personnel Person(s) 92 Information Security and Privacy Protection ——Diversity Information security incidents or violations Case(s) 0 Ethnic minority employees Person(s) 17 Innovation Drivers Demobilized military personnel Person(s) 5 R&D investment RMB million 92.64 Performance Management R&D investment as % of revenue % 13.39 Performance appraisal rate for key positions % 100 Number of R&D personnel Person(s) 430 Employee Training R&D personnel ratio % 43 Employee training coverage rate % 100 Valid patents held Number 455 Total training hours Hour(s) 8350.75 Invention patents Number 103 Average training hours per employee Hour(s) 8.35 New patent applications Number 154 Total training attendees person-times 2844 New patents granted Number 84 Occupational Health and Safety Software copyrights held Number 152 Number of work-related injury incidents Case(s) 11 Number of work-related injuries Person(s) 11 New software copyright applications Number 44 Workdays lost due to injuries Day(s) 15 New software copyrights granted Number 54 Number of work-related fatalities Case(s) 0 Trademarks registered Number 26 Fatalities in work-related accidents Person(s) 0 Social Contributions Work-related fatality rate % 0 Social welfare investment RMB million 0.17 94 95Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Indicators Index GRI Standards Disclosure Chapter Reference 3-1 Process to determine material topics Enhancing ESG Governance GRI Indicators Index GRI 3: 3-2 List of material topics Enhancing ESG GovernanceMaterial Topics 2021 Statement of use：YIFI Laser has reported the information cited in this GRI Content Index for the period January 1 2024 to December 31 2024 with reference to the 3-3 Management of material topics Enhancing ESG Governance GRI Standards.GRI 1 usedGRI 1: Foundation 2021 201-1 Direct economic value generated and distributed Key Performance Table GRI Standards Disclosure Chapter Reference 201-2 Financial implications and other risks and opportunities due to GRI 201: climate change Addressing Climate Change 2-1 Organizational details About YIFI Laser Economic Performance 2016 201-3 Defined benefit plan obligations and other retirement plans Refer to YIFI Laser 2024 Annual Report 2-2 Entities included in the organization’s sustainability reporting About This Report 201-4 Financial assistance received from government Refer to YIFI Laser 2024 Annual Report 2-3 Reporting period frequency and contact point About This Report GRI 203: Annual Theme: Building a Chain-Integrated 2-5 External assurance Independent Assurance Statement 203-1 Infrastructure investments and services supported Innovation Ecosystem Accelerating High-Indirect Economic Impacts 2016 Quality Development of Laser Industry 2-6 Activities value chain and other business relationships About YIFI LaserResponsible Supply Chain GRI 205: 205-2 Communication and training about anti-corruption policies and procedures Upholding Business Ethics 2-7 Employees Employee Rights and Benefits Anti-corruption 2016Key Performance Table 2-9 Governance structure and composition Reinforcing Corporate Governance GRI 207: 207-1 Approach to tax Refer to YIFI Laser 2024 Annual ReportEnhancing ESG Governance Tax 2019 2-10 Nomination and selection of the highest governance body Reinforcing Corporate Governance 207-2 Tax governance control and risk management Refer to YIFI Laser 2024 Annual Report 2-11 Chair of the highest governance body Refer to 2024 Annual Report 302-1 Energy consumption within the organization Key Performance Table 2-12 Role of the highest governance body in overseeing the management of impacts Enhancing ESG Governance GRI 302: 302-3 Energy intensity Key Performance Table 2-13 Delegation of responsibility for managing impacts Enhancing ESG Governance Energy 2016 302-4 Reduction of energy consumption Strengthening Energy Management 2-14 Role of the highest governance body in sustainability reporting Enhancing ESG Governance GRI 2: 302-5 Reductions in energy requirements of products and services Innovation-Driven Development General Disclosures 2021 2-15 Conflicts of interest Refer to YIFI Laser 2024 Annual Report 2-16 Communication of critical concerns Enhancing ESG Governance 303-1 Interactions with water as a shared resource Optimizing Resource Utilization 2-17 Collective knowledge of the highest governance body Enhancing ESG Governance GRI 303: 303-2 Management of water discharge-related impacts Compliance with Three Wastes Discharge 2-19 Remuneration policies Refer to YIFI Laser 2024 Annual Report Water and Effluents 2018 303-3 Water withdrawal Key Performance Table 2-20 Process to determine remuneration Refer to YIFI Laser 2024 Annual Report 303-5 Water consumption Key Performance Table 2-22 Statement on sustainable development strategy Message from the Chairman 2-23 Policy commitments Upholding Business Ethics 305-1 Direct (Scope 1) GHG emissions Addressing Climate Change 2-24 Embedding policy commitments Upholding Business Ethics 305-2 Energy indirect (Scope 2) GHG emissions Addressing Climate Change 2-25 Processes to remediate negative impacts Upholding Business Ethics GRI 305: Emissions 2016 305-4 GHG emissions intensity Addressing Climate Change 2-26 Mechanisms for seeking advice and raising concerns Upholding Business Ethics Key Performance Table Employee Rights and Benefits 305-5 Reduction of GHG emissions Strengthening Energy Management 2-27 Compliance with laws and regulations Key Performance Table 2-28 Membership associations Industry Cooperation and Development GRI 306: 306-1 Waste generation and significant waste-related impacts Compliance with Three Wastes Discharge Waste 2020 2-29 Approach to stakeholder engagement Enhancing ESG Governance 306-2 Management of significant waste-related impacts Compliance with Three Wastes Discharge 96 97Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Self-Regulatory Guidelines No. 14 for Companies Listed on Shanghai Stock Exchange - Sustainability Report (For Trial Implementation) Indices of Guidelines Topics GRI Standards Disclosure Chapter Reference Dimension Topic Clause Chapter Reference GRI 401: Addressing climate change Articles 21-28 Addressing Climate Change 401-2 Benefits provided to full-time employees that are not provided to Employee Rights and Benefits Employment 2016 temporary or part-time employees Employee Care and Engagement Pollutant discharge Article 30 Compliance with Three Wastes Discharge 403-1 Occupational health and safety management system Workplace Safety and Health Waste disposal Article 31 Compliance with Three Wastes Discharge 403-2 Hazard identification risk assessment and incident investigation Workplace Safety and Health Ecosystem and biodiversity protection Article 32 Ecosystem Protection Environment 403-3 Occupational health services Workplace Safety and Health Environmental compliance management Article 33 Environmental Compliance Management 403-5 Worker training on occupational health and safety Workplace Safety and Health Energy utilization Article 35 Strengthening Energy Utilization GRI 403: Occupational Health 403-6 Promotion of worker health Workplace Safety and Health Water resources utilization Article 36 Optimizing Resource Utilization and Safety 2018 403-7 Prevention and mitigation of occupational health and safety Workplace Safety and Health Circular economy Article 37 Optimizing Resource Utilizationimpacts directly linked by business relationships Workers covered by an occupational health and safety Rural revitalization Article 39 Social Welfare and Charity403-8 management system Workplace Safety and Health Social contributions Article 40 Social Welfare and Charity 403-9 Work-related injuries Key Performance Table Innovation Article 42 Innovation-Driven Development 403-10 Work-related ill health Workplace Safety and Health Ethics of science and technology Article 43 Not Involved 404-1 Average hours of training per year per employee Key Performance Table GRI 404: Supply chain security Article 45 Responsible Supply Chain 404-2 Programs for upgrading employee skills and transition assistance programs Employee Training and DevelopmentTraining and Education 2016 Community Equal treatment of SMEs Article 46 Risk and Internal Control 404-3 Percentage of employees receiving regular performance and career development reviews Key Performance Table Product and service safety and quality Article 47 Comprehensive Quality Management GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees Reinforcing Corporate Governance Data security and customer privacy Article 48 Protecting Information Security Opportunity 2016 Employee Rights and Benefits Employees Article 50 Employee Training and DevelopmentWorkplace Safety and Health Employee Care and Engagement Due diligence Article 52 Responsible Supply Chain Stakeholder engagement Article 53 Enhancing ESG Governance Sustainability-related governance Anti-commercial bribery and anti-corruption Article 55 Upholding Business Ethics Fair competition Article 56 Upholding Business Ethics 98 99Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Independent Assurance Statement Assurance Standard AA1000 Independent Assurance Statement REALIZE ESG applied the Type I moderate assurance under AA1000AS v3 with reference to standards principles and initiatives including the Global Reporting Initiative (GRI) Sustainability Reporting Standards the Sustainability Reporting Guidelines for Listed Companies issued by the Shanghai Shenzhen and Beijing Stock Exchanges and the 2030 United Nations Sustainable Development Goals (SDGs) among others.To the Management and Stakeholders of YIFI Laser: Shanghai REALIZE ESG Corporate Services Co. Ltd. (hereinafter referred to as "REALIZE ESG") was commissioned by Wuhan YIFI Laser Co. Ltd. (hereinafter referred to as "YIFI Laser") to conduct an independent limited assurance on the YIFI Sources of Information Laser 2024 Environmental Social and Governance Report (hereinafter referred to as the "ESG Report") and to disclose the assurance results and conclusions to the readers and stakeholders of the ESG Report through this independent assurance Report title: YIFI Laser 2024 Environmental Social and Governance Report statement.Source: YIFI Laser Scope of Assurance Responsibilities and Statements The assurance period is limited to the information and data disclosed in the ESG Report covering the period from YIFI Laser is fully responsible for the preparation and content of the YIFI Laser 2024 Environmental Social and January 1 2024 to December 31 2024. Any related information outside the reporting period is not within the scope Governance Report and guarantees the completeness and authenticity of the report's content as well as the of this assurance. information and materials provided to REALIZE ESG ensuring that there are no material misstatements. REALIZE ESG's responsibility is to perform assurance within the scope described and provide professional assurance The assurance covers the data and information in the ESG Report related to YIFI Laser and its subsidiaries exclud- opinions and an independent assurance statement to the readers and stakeholders of the report.ing data and information from YIFI Laser’s suppliers partners and other third parties.Based on the limitations of the assurance scope REALIZE ESG conducted an independent limited assurance on the Evaluating whether YIFI Laser’s ESG report fails to comply with the AA1000AS v3 principles of inclusivity materiali- matters within the defined scope of the ESG Report in accordance with AA1000AS v3 and provided its assurance ty responsiveness and impact. conclusion. Other than providing independent verification of the facts underpinning this conclusion and issuing this assurance statement REALIZE ESG assumes no legal or other responsibility for any inquiries for other purposes Information and data that have already been audited or verified by independent third-party organizations are not or to any third parties reading this independent assurance statement.subject to repeated assurance.Any questions related to this independent assurance statement will be addressed by YIFI Laser. 100 101Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility Assurance Process and Tasks Limitations To collect evidence and form conclusions the primary tasks of REALIZE ESG are summarized as follows: During the assurance process of the YIFI Laser 2024 Environmental Social and Governance (ESG) Report REALIZE ESG relied entirely on the relevant information and data provided by YIFI Laser without gathering information from other external sources or conducting interviews with external stakeholders.Documenting key resource requirements evidence collection tasks activities deliverables and timelines in an assurance plan.Understanding YIFI Laser's overall ESG performance and related processes verifying key organizational Assurance Conclusion developments and policy implementation and reviewing supporting evidence in the report.REALIZE ESG did not identify any instances of non-compliance with the principles of inclusivity materiality responsiveness Conducting interviews and reviewing documents to understand YIFI Laser's major stakeholders their expectations and impact as outlined in AA1000AP (2018) in YIFI Laser's 2024 ESG report. The detailed assurance results are as follows: and needs the channels of communication and how YIFI Laser responds to the expectations and needs of its stakeholders.Inclusivity Performing analytical review procedures on the ESG-related information overall performance evaluation and YIFI Laser identified stakeholders during business operations understood stakeholders' expectations and key consistency assurance to ensure consistency with the report's content. concerns communicated in a timely manner on material topics and transparently disclosed the communication outcomes.Verifying the report and process management related to the principles of inclusivity materiality responsiveness and impact in AA1000 to confirm the applicability of this statement. Materiality Performing other procedures deemed necessary by REALIZE ESG. YIFI Laser collected stakeholder opinions established a materiality analysis process identified ESG topics relevant to the Company and presented the evaluation results.Responsiveness Independence and Verification Capability YIFI Laser responded to the material topics of concern to its key stakeholders and implemented corresponding policies systems and actions to address stakeholders' concerns.REALIZE ESG and YIFI Laser are completely independent organizations and all members of REALIZE ESG's Impact assurance team have no commercial relationship with YIFI Laser that would lead to a conflict of interest. The REALIZE ESG assurance team independently conducted this assurance. YIFI Laser demonstrated the capability to identify material topics and implemented a balanced and effective evaluation and disclosure approach. The Company has established a systematic process for monitoring measuring The assurance team of REALIZE ESG is composed of experienced ESG professionals who have undergone evaluating and managing impacts thereby enabling more effective decision-making and outcome management professional training on sustainability standards such as the Global Reporting Initiative (GRI) Standards AA1000AS within the organization. The report fairly and objectively reflects the impact of material topics.v3 ISO 14001 ISO 9001 ISO 26000 SA 8000 and the EcoVadis global supply chain rating. They possess a comprehensive understanding and practical experience with international guidelines evaluation systems and assurance standards thereby ensuring the capability to conduct the assurance. Assurance Institution: Shanghai REALIZE ESG Corporate Services Co. Ltd.Lead Verifier: July 13 2025 Shanghai China 102 103Wuhan YIFI Laser Co. Ltd. 2024 ESG Report Message from the About YIFI Laser Laser-Inspired 2024 Annual Theme Converge: Brilliance: Guiding Light: Sustain: Appendix Chairman Fortifying Foundations Crafting Excellence Green Empowerment Upholding Responsibility About This Report Reliability Assurance This report contains no false records misleading statements or major omissions. In case of any discrepancies between the relevant data herein and the 2024 Annual Report the data in Annual Report shall prevail.This report is the first Environmental Social and Governance (ESG) report issued by YIFI Laser Co. Ltd. It aims to truly reflect the Company's efforts practices and performance in environmental social and governance responsibilities through objective standardized transparent and comprehensive information disclosure.Explanation of References For ease of presentation and reading "Wuhan YIFI Laser Co. Ltd." in this report may also be referred to as " YIFI Laser" Reporting Period "the Company" or "we." All abbreviations used in the report carry the same meanings as those defined in the 2024 Annual Report.This report mainly covered the period from January 1 2024 to December 31 2024 with certain content appropriately extending into the preceding and subsequent years.Report Access Reporting Scope This report is available in both printed and electronic formats.The electronic version of this report can be downloaded from the official website (www.yifilaser.com) or the Shanghai The information disclosed in this report covers YIFI Laser Co. Ltd. and its subsidiaries. Unless otherwise specified the Stock Exchange website (www.sse.com.cn). For the printed version of the report please contact us via email (ir@yifilaser.scope of information coverage is consistent with the scope of the consolidated financial statement of YIFI Laser (Stock com) or by phone (+86 027-87592246).Code: 688646.SH).Compilation Guidelines Feedback and Suggestions If you have any questions or suggestions about this report please scan the QR code below or contact us through the Global Sustainability Standards Board (GSSB) Sustainability Reporting Standards (GRI Standards) above channels. Thank you! Self-Regulatory Guidelines No. 14 for Companies Listed on Shanghai Stock Exchange - Sustainability Report (For Trial Implementation) Self-Regulatory Guidelines No. 13 for Companies Listed on the Shanghai Stock Exchange STAR Market- Preparation of Sustainability Reports China Enterprise Reform and Development Society and the Chinese Academy of Social Sciences General Framework of the Guidelines for Corporate Sustainability Reporting in China (CASS-ESG 6.0) International Organization for Standardization ISO 26000: Social Responsibility Guidance (2010) 2030 United Nations Sustainable Development Goals (SDGs) Data Sources The data in this report are sourced from the Company's official documents statistical reports or relevant publicly available materials. 104105