2025
ENVIRONMENTAL SOCIAL AND
GOVERNANCE (ESG) REPORT
Wuhan YIFI Laser Corp. Ltd.CONTENTS 01 Illuminating Foundations 02 Illuminating a New Illuminating Nature Fortifying Sustainable Chapter Driving 03 Practicing Green Roots Industrial Progress Development
About This Report 01 Improving Governance Fortifying Foundations 33 Innovation Leadership Driving Development 45 Environmental Management Standardized Procedures 67
Message from the Chairman 03 Party Building Leadership Building Consensus 35 Striving for Excellence Strictly Controlling Quality 50 Pollution Prevention and Emission Control 69
Strengthening Internal Control Strictly Adhering to Compliance 37 Reliable Service Optimizing Experience 57 Climate Governance Anchoring Dual Carbon Goals 71
About YIFI Laser 05
Transparent Communication Safeguarding Rights and Interests 39 Data Security and Privacy Protection 59 Energy Management Efficient Utilization 74
Digital-Intelligent Integration Enhancing Efficiency 40 Industrial Chain Leadership and Synergy Enhancement 61 Harmonious Coexistence Protecting Ecology 78
Feature: Platform Enhancement and Multi-
Dimensional Expansion 23
04 Illuminating Hearts Building a Harmonious Ecosystem Together Appendix
Compliant Employment Caring for Employees 81 Report Index Table 102
Safety Production Health Protection 86 Reader Feedback Form 103
Systematic Talent Cultivation Empowering Growth 92 Independent Assurance and Statement of Opinion 105
Industrial Synergy Co-creating Value 94
Fulfilling Responsibilities Contributing to Society 982025 Environmental Social and Governance (ESG) Report
About This Report on Listed Companies of the SSE—Compilation of Sustainable Development Reports the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE STAR Market - Compilation of Sustainable Development
Reports (Revised January 2026) the Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI
Standards) and the Guidelines for Corporate Sustainability Reporting in China (CASS-ESG 6.0) issued by the China
Report Overview Enterprise Reform and Development Society. It also aligns with the 2030 United Nations Sustainable Development
The 2025 Environmental Social and Governance (ESG) Report of Wuhan YIFI Laser Corp. Ltd. (hereinafter referred Goals (SDGs).to as "this Report") is the second Environmental Social and Governance (ESG) report published by Wuhan YIFI Laser
Corp. Ltd. (hereinafter referred to as "YIFI Laser" "the Company" or "We"). Adhering to the principles of objectivity
standardization transparency and comprehensiveness this report systematically reviews the Company's ESG Report Access
practices and progress in 2025. By disclosing ESG performance and key initiatives it aims to enhance communication This report is available in electronic format for download on the website of the Shanghai Stock Exchange (http://
with stakeholders address their concerns regarding material ESG topics and promote the continuous improvement www.sse.com.cn) and the Company's official website (https://www.yifilaser.com/). Adhering to the principles of
of the Company's ESG management and performance thereby better fulfilling our ESG commitments in the future. conservation and environmental protection if you require a printed copy or have any questions or suggestions
regarding the content of this report please feel free to contact us by phone or email. The contact information is as
follows:
Reporting Period Address: YIFI Laser 4th Gaoxin Road Gedian Development Zone Ezhou City Hubei Province
This Report is an annual report. Unless otherwise stated the reporting period covers from January 1 to December 31 Postal Code: 436030
2025. To enhance the comparability and completeness of this report certain content may refer to previous years or Investor Hotline: +86 027-87592246
contain forward-looking statements. Email: ir@yifilaser.com
Reporting Scope Definitions
The content of this Report provides a detailed disclosure of the practices and performance of Wuhan YIFI Laser Corp.Ltd. and its subsidiaries in the areas of environment social and corporate governance. Unless otherwise specified Item Refers to Meaning
the scope of this Report is consistent with that of the 2025 Annual Report of Wuhan YIFI Laser Corp. Ltd.YIFI Laser the Company we Refers to Wuhan YIFI Laser Corp. Ltd.This Report Refers to YIFI Laser 2025 Environmental Social and Governance (ESG) Report
Data Sources and Reliability Assurance
Reporting Period this Year Refers to The period from January 1 2025 to December 31 2025
Some data in this report are sourced from the 2025 Annual Report of Wuhan YIFI Laser Corp. Ltd. In case of any
discrepancies between the financial data herein and the annual report the latter shall prevail. All other data is Wuhan YIFI Laser Intelligent Equipment Co. Ltd. a wholly-owned
YIFI Intelligent Refers to
compiled based on information provided by various departments of the Company and in light of the Company's subsidiary of the Company
actual operations.Unless otherwise specified all currency amounts mentioned in this report are in Renminbi (RMB).Jiangsu YIFI Laser Equipment Co. Ltd. a wholly-owned subsidiary of
Jiangsu YIFI Refers to
the Company
Report Language Wuxi New Cohesion Technology Co. Ltd. a controlled subsidiary of
New Cohesion Refers to
the Company
This Report is available in both Chinese and English versions. In case of any discrepancy between the two versions
the Chinese version shall prevail. Guangdong Ecosion Manufacturing Technology Co. Ltd. a controlled
Ecosion Refers to
subsidiary of the Company
Reporting Standards RMB RMB 10000 RMB 100 Refers to Renminbi Renminbi 10000 Renminbi 100 Million
Million
This report has been prepared in reference to the requirements of the Guidelines No. 14 of Shanghai Stock Exchange
for Self-Regulation of Listed Companies—Sustainability Report (Trial) the Guide No.4 for Self-Regulatory Supervision
1 22025 Environmental Social and Governance (ESG) Report
Message from the Chairman
We are currently in a period of profound transformation unseen in a century with a new wave of technological and high-stability processing with equipment uptime exceeding 98%. Concurrently we have made breakthroughs
revolution and industrial change gathering momentum. Against the backdrop of the "dual carbon" strategy in multiple key technologies including laser drying ultra-high-speed surface treatment for electrode coatings and
and energy transition the new energy industry is facing historic opportunities while shouldering even greater closed-loop monitoring of welding quality. These effectively improve efficiency reduce energy consumption and
responsibilities. For enterprises the era of competing solely on volume is over. A new phase of development centered ensure quality continuously contributing to the high-quality development of the new energy industry.on quality and driven by sustainability has begun. YIFI Laser has always adhered to the principle of "long-termism"
deeply integrating ESG concepts into our corporate strategy and daily operations striving to create enduring value We practice green development to protect our shared home. The Company integrates climate governance into its
across environmental social and governance dimensions. overall strategy systematically identifying and managing climate-related risks. In 2025 we continuously advanced
the optimization of our energy structure with self-consumed photovoltaic power from factory rooftops exceeding
We continuously reinforce our governance foundations to solidify the cornerstone of sustainable development. 100 MWh. Through lean production and process optimization we constantly improved resource utilization efficiency
YIFI Laser has established a multi-tiered and layered ESG governance system comprising the decision-making level and reduced energy consumption per unit of output value. Regarding pollution prevention we have established a
the management level and the execution level. This ensures that our sustainable development strategy is effectively standardized management system covering wastewater exhaust gas waste and noise ensuring that all operational
promoted from the top down and that timely feedback is provided from the bottom up. The Board of Directors has activities comply with environmental regulations. We integrate the concept of a circular economy throughout the
established the Strategy and Development Committee which coordinates material ESG matters. We continuously product lifecycle promoting the recycling and reuse of packaging materials making green a defining feature of our
improve our internal control compliance and business ethics systems. We continuously improve our internal control corporate development.system to optimize the framework of corporate governance.We also promote the integration of anti-commercial
bribery and anti-corruption mechanisms into the entire process of system design implementation and supervision We adhere to a people-oriented approach creating value together with our employees partners and society.establishing a closed-loop management framework in risk management internal control and compliance and Our employees are our most valuable asset. Upholding the talent philosophy of "valuing both integrity and ability
business ethics. prioritizing integrity optimizing talent potential and achieving shared growth" we are committed to building a
diverse equitable and inclusive workplace where the legitimate rights and interests of every employee are protected.We drive green transformation through innovation empowering industrial upgrading. As the leading enterprise in In 2025 employee training coverage remained at 100% and we achieved our goal of zero safety accidents. We
the new energy battery laser application industrial chain we firmly believe that technological innovation is the core vigorously promote our tiered talent development program enabling every employee to realize their value and
engine for sustainable development. In terms of platform development the Company's application for the "Hubei achieve growth at YIFI Laser. We adhere to fair procurement practices treat small and medium-sized enterprises
Provincial Precision Laser Welding Pilot Platform" was selected as a provincial-level manufacturing pilot platform equally and empower our supply chain partners through training and communication to jointly fulfill social
focusing on bridging the "last mile" for technological innovation to transition from the laboratory to industrialization. responsibilities. In terms of social contribution we donated RMB 100000 to the "Optics Valley Charity Student Grant"
In terms of intelligent equipment we continue to advance product upgrades: Cylindrical battery equipment has seen to support students in need. We actively participate in community development and rural revitalization giving back
continuous improvement in precision yield rate and stability through process and technology optimization; the to society through concrete actions.fourth-generation prismatic cell intelligent assembly line has been upgraded and iterated achieving batch delivery of
multiple production lines reconstructing the cell manufacturing logic through systematic innovation and providing Looking ahead YIFI Laser will continue to uphold its mission of "dedicated to laser innovation pioneering intelligent
solid equipment support for the large-scale high-quality development of the energy storage industry; the "Wuji" all- equipment upgrades." With an open attitude the power of innovation and a commitment to win-win cooperation
solid-state battery jointly developed with Jinyu New Energy has been delivered to an international top-tier customer; we will join hands with all stakeholders to create a green low-carbon and sustainable future!
the third-generation photovoltaic perovskite battery intelligent equipment has achieved high-efficiency high-quality
3 42025 Environmental Social and Governance (ESG) Report
About YIFI Laser
Company Overview
Headquartered in Wuhan Optics Valley China YIFI Laser is a national high-tech enterprise specializing in the R&D
production and sales of intelligent precision laser processing equipment. It is a nationally recognized specialized
refined distinctive and innovative "Little Giant" enterprise and a listed company on the STAR Market (SH688646).Consistently focusing on the field of intelligent laser processing equipment the Company has established a
technology and product system centered on precision laser processing technology and embodied in intelligent
manufacturing equipment. Our main products encompass intelligent manufacturing solutions for cylindrical full-tab
batteries prismatic batteries flexible module/PACK assembly and intelligent logistics systems. These products are
included in the National Manufacturing "Single Champion Product" list and the "Leading Technology" list of Sci-tech
Innovation China and are widely used in sectors such as new energy batteries semiconductors home appliances and
kitchenware and automotive components. The Company has constructed a novel innovation platform integrating
"R&D innovation - engineering transformation - analysis and testing." This platform promotes the industrial
application of emerging technologies facilitates the intelligent upgrading of advanced industries such as new energy
batteries and underpins our ambition to become a world-class intelligent manufacturing equipment supplier.Founded in Stock Code Number of Employees R&D and
Production Bases
200568864611536
Corporate Culture
Mission
Dedicated to laser innovation pioneering
intelligent equipment upgrades
Vision
Core Values
Becoming a world-class
Pragmatism Progress
intelligent manufacturing
Innovation Collaboration
equipment supplier
Business Philosophy
Customer-centric Quality-assured;
Innovation-driven Service-supported
5 62025 Environmental Social and Governance (ESG) Report
Development Milestones Since 2024
Building Platform Systems
Since its establishment in 2005 YIFI Laser has been driven by technological innovation evolving from self-developed
lasers to "laser + automation" intelligent equipment and subsequently to a comprehensive layout across the entire · Upgraded the construction of the YIFI Laser
industrial chain. The Company has overcome key technological challenges in cylindrical full-tab battery processes Engineering Technology Research Institute.achieving domestic breakthroughs in fully automatic assembly lines for both prismatic and cylindrical full-tab 2015—2018 · Constructed a collaborative innovation platform
batteries. It has established intelligent manufacturing bases diversified into various fields and successfully listed for the industrial chain.on the STAR Market in 2023. Having now established a new R&D platform and completed strategic acquisitions YIFI Industrial Synergistic · Invested in and established Ecosion setting up
Laser has become a National Industrial Design Center and a leading enterprise in the industrial chain spearheading Development an R&D and intelligent manufacturing base in
innovation in laser and high-end equipment technology. South China.· Launched construction of the "YIFI Laser · S trategically acquired New Cohesion venturing
Intelligent Manufacturing Base in East China" into the smart logistics industry.project. Delivered the world's first automatic · Accredited as a "National Industrial Design
assembly lines for cylindrical full-tab batteries. Center."
2011—2014 · Self-developed the first-generation flexible · Appointed as the chain leader of the laser
five-axis welding station.Technological Iteration application industry for new energy batteries in · C omprehensively achieved intelligent Hubei Province.and Upgrading upgrades for various cell module and PACK · Jointly established the "Laser Application and
2005—2010 production lines.· E stablished the South China Branch and fully Premium Equipment Innovation Hub" with · L aunched automatic assembly lines for
advanced "Laser + Automation". Wuhan Industrial Innovation Development
Product R&D and household appliances kitchenware green · Formed a lithium battery equipment R&D Institute (WIDI).Business Start-up buildings and automotive components.alliance with the Guangzhou Institute of
· R ecognized as "Hubei Provincial Enterprise
Industrial Technology Chinese Academy of
·Y IFI Laser was established in Wuhan China Technology Center".Sciences.Optics Valley. · L aunched various lithium battery laser
· S elf-developed pulsed lasers with independent welding assembly pilot lines.intellectual property rights achieved mass · Broke through the "laser vertical welding"
production. technology for prismatic batteries and
· Won the title of "National High-Tech pioneered automatic assembly lines for
Enterprise". prismatic batteries.· E stablished the Laser Application Test · L isted on the STAR Market.· A chieved key technology breakthroughs in
Center constantly expanding the innovative · T he 360ppm cylindrical full-tab battery intelligent cylindrical full-tab batteries and pioneered
application fields of laser technology. assembly line rolled off the production line.automatic assembly lines for cylindrical full-
· O vercame technical challenges in multi-tab/ · Launched construction of the "Intelligent tab batteries.full-tab battery processing and equipment Manufacturing Headquarters Base in Central China "
launching a standalone welding machine for project.cylindrical full-tab battery. · Achieved mass production and delivery of cylindrical
full-tab cell intelligent assembly lines.· Awarded as a specialized refined distinctive and
innovative "Little Giant" enterprise which received
national key support.Capital Operation and · Honored on the "Leading Technology" list of the
Growth China Association for Science and Technology.· S elected for the National Manufacturing Industry
2019—2023 "Single Champion Product" list.
7 82025 Environmental Social and Governance (ESG) Report
Products and Solutions
Core Modules of Laser Systems Laser Intelligent Equipment
Lasers
In-Weld
Inspection Collimation
Focus Scanning Laser Welding Machines Laser Welding Stations
Galvanometer
Molten Pool
Monitoring
Adapter Power Detection
Laser Welding System Modules Laser Sensing Systems
Automatic Laser Welding and Assembly Lines
Intelligent Manufacturing Solutions for Battery Cells
Cylindrical Tabless Battery Cell Assembly Lines
Prismatic Battery Cell Assembly Lines
Multi-Tab Winding Type Multi-Tab Stacking Type Dual-Pole Full-Tab Stacking Type
Single-Pole Group Dual-Pole Group Dual-Pole Full-Tab Quad-Pole Group Blade Structure
9 102025 Environmental Social and Governance (ESG) Report
Battery System Assembly Solutions EPC-Level Smart Logistics System 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 AMHS System CIM
Production Equipment Production Equipment
AMHS Systems for Semiconductor Factory Manufacturing Software Systems
Utilizing Digital Twin Technology for Visualized Operations in Digital Factories
Production Line Equipment Structure
Factory Visualization Equipment Visualization
Visualization Visualization
MES Software LES/WMS Software WCS Software PLC Control Programs
Line-side Stocker High-speed Vertical Overhead Hoist Transport Energy Management Software Standard Equipment Interfaces Core Equipment: Stacker Cranes Standardized Component Design
Lift Tower (OHT) System Modular Installation Design Conveyor Lines Robotic Workstations
11 122025 Environmental Social and Governance (ESG) Report
Global Business Presence New Cohesion Daishi Technology
The company steadfastly advances its globalization strategy establishing production bases and R&D centers in key
regions such as Central China East China and South China and setting up subsidiaries/second-tier subsidiaries in
countries including Singapore and South Korea. It provides customers with integrated R&D production and sales
services building an efficient and synergistic global business operation system. Currently the company's core
products have achieved sales in multiple countries and regions including the United Kingdom Germany Brazil
India Japan South Korea Turkey and Vietnam receiving wide acclaim from global customers.Wuxi Jiangsu Dongguan Guangdong
Group Headquarters
Wuhan · Optics Valley
Britain
YIFI Intelligent Germany
America Turkey Korea
China Japan
Hong Kong
India
Vietnam
Ezhou Hubei Singapore
Malaysia South China Sea Islands
Jiangsu YIFI Ecosion Brazil
South Africa
Note: This background map is for illustration only and does not represent a real map.Zhenjiang Jiangsu Zhuhai Guangdong
13 142025 Environmental Social and Governance (ESG) Report
ESG Key Highlights
·Revenue RMB 803.01 million
·Environmental violations and penalties 0 Case(s) Economic
·Total assets RMB 3135.22 million
Environmental ·Total PV power generation 173.29 MWh
·Tax paid RMB 31.20 million
·Self-consumed PV electricity 115.04 MWh
·Total number of shares purchased by Senior Management 544433 shares
·Total GHG emissions 1289.39 tCO2e ?T otal amount of share purchases (including commission and
?(Scope 1+2) other transaction fees) RMB 16.58 million
·GHG emissions intensity 0.016 tCO e/RMB 10000 of revenue ·Repurchased shares 2.2908 million shares (Phase II share repurchase plan) 2
?(Scope 1+2) ?Repurchase amount RMB 77.7056 million
·Packaging material recycled 228 units
Corporate Governance
R&D Innovation and Engineering Governance ·General Meeting of Shareholders held 3
Social ·Annual R&D investment 111.36 million ·Meeting of Board of Directors held 8
·R&D investment as % of revenue 13.87% ·C ompliance and performance training for directors and
senior management 6 sessions
·Number of R&D personnel 453 Person(s)
·Investor hotline received over 1000 inquiries
·R&D personnel as % of total employees 39.29%
·Answered questions on the SSE E-Interaction platform 210 investor questions
·Number of granted intellectual property rights 742
Board Composition
Employees
·Number of board members 9 person(s)
·Training coverage rate 100%
·Independent directors 3 representing 33.3%
·Total training hours 8810.35 hours
Compliance and Risk Management
·Total training investment RMB 399600
·Information security and customer data protection coverage 100%
·Occupational health and safety training coverage 100%
Integrity in Operations
·Coverage rate of occupational health examinations 100%
·A nti-commercial bribery and anti-corruption training
Social Welfare sessions held during the year 1 session
·Social welfare investment RMB 100000
15 162025 Environmental Social and Governance (ESG) Report
Annual Honors and Awards Corporate Certifications
2025 Lithium Vision Award - 2025 Lithium Vision Award - GGII 15-Year Technology Leap
Innovative Company of the Year Influential Company of the Year Award
Organizing Committee of the International Summit on Power Battery GGII
Applications (CBIS) CBEA
National Manufacturing Single Champion National Industrial Design Center
Ministry of Industry and Information Technology of the Ministry of Industry and Information Technology of the
PRC China Federation of Industrial Economics PRC
Gold Award of the World Battery & Energy Storage Technological Innovation Enterprise of the World
Industry Expo Battery & Energy Storage Industry Expo
Organizing Committee of the World Battery Industry Expo Guangdong Battery Industry Association
National Intellectual Property Advantage Enterprise Sci-Tech Innovation China Leading Technologies List
China National Intellectual Property Administration China Association for Science and Technology
(CNIPA)
Leading Enterprise Award by Guangdong 2025 Veken Cup · OFweek Hubei Premium Product
Battery Industry Association、Advanced Outstanding Brand in Lithium
Equipment Enterprise Award、 Battery Equipment
Technological Innovation Enterprise Award Office of Hubei Brand Promotion
Guangdong Battery Industry Association OFweek Lithium Battery Mechanism
Trusted Brand in the Lithium Equipment Technology Innovation China Laser Star Rising Award
Battery Industry Award National Specialized Refined Distinctive and Innovative "Little Giant" Enterprise
Ministry of Industry and Information Technology of the PRC
Starting Point Lithium Battery & SPIR Organizing Committee of the China
Laser Star Rising Award
17 182025 Environmental Social and Governance (ESG) Report
ESG Governance Stakeholder Engagement
Guided by the principles of sustainable development YIFI Laser fully addresses and responds to the legitimate We consistently prioritize the concerns and expectations of our stakeholders. We actively maintain open communication
concerns of all stakeholders. We continuously deepen our communication and collaboration mechanisms proactively with all parties extensively solicit and carefully consider their opinions and suggestions and formulate and implement
incorporate opinions and suggestions from all parties and consistently enhance the scientific rigor and transparency improvement measures around key issues. The Company continuously promotes the integration of sustainable
of its decision-making processes related to sustainable development. development concepts into the entire process of operation management and strategic planning contributing to the
long-term goal of achieving high-quality and stable development.ESG Governance Structure
Stakeholder Expectations and Demands Communication and Response
To continuously improve its sustainable development management YIFI Laser has established a multi-tiered and
Strict implementation of corporate governance systems
layered ESG governance system with clearly defined responsibilities. The Company's ESG governance structure General Meeting of Shareholder
consists of the decision-making level the management level and the execution level forming a top-down Good corporate governance Information disclosure
Sound risk management Performance briefings
management mechanism and a bottom-up feedback mechanism.Investors and Compliance information disclosure
Actively responding to investor inquiries on the SSE E-Interaction
platform
Shareholders Protection of investor rights and interests Maintaining an open investor relations email
The decision-making level comprises the Board of Directors and its subordinate Strategy and Development Diligently answering investor hotline calls
Hosting investor research visits
Committee. The management level is the ESG Management Working Group led by the Securities Affairs Department
with the participation of heads of various departments and relevant ESG liaison officers. The execution level consists Compliance operation Field visits and researchSustainable development management Regular reporting and communication
of all functional departments and subsidiaries which are responsible for implementing related tasks. In accordance Green and low-carbon operations Proactively accepting supervision
Government and Ecological environment protection Environmental compliance managementwith internal policies such as the Detailed Rules for the Work of the Strategy and Development Committee and Regulators Upholding business ethics Promoting low-carbon production practicesProtecting employees' rights and interests Legal and compliant employment
the ESG Management Policy the Company clearly defines the roles and responsibilities of each level ensuring the Participating in social welfare Participating in social welfare
effective promotion and implementation of ESG strategies systems and related matters.Improving product quality
High-quality products and services Customer follow-up visitsPromptly addressing customer issues
Management Level Organizational Structure Responsibilities Customer privacy protection
R&D and innovation Strict protection of customer privacy
·R eview and approve the Company's ESG development strategy target plans material topics and Customers Digital transformation Establishing long-term cooperative partnershipsAdvancing R&D innovation and digital transformation
Board of Directors related management systems. Improving intellectual property protection
·Review and approve the Company's annual ESG report.· Promote the integration of ESG concepts into the Company's overall development strategy and plans Protecting employees' legitimate rights and Protecting employees' rights and interests
and provide recommendations on the Company's long-term development direction. interests Improving communication channels
Decision- Enhancing employee training and skills·R esearch and propose recommendations on ESG-related systems strategic objectives and reporting Valuing career development and training Democratic communication
making Level Strategy and matters. Employees Competitive compensation and benefitsEnsuring occupational health and safety Employee activities
Development ·I dentify and assess ESG-related risks and opportunities for the Company and propose management Work-life balance Ensuring safety production
Committee recommendations. Labor Union
· Conduct research and form opinions on material ESG matters affecting the Company's development.· Inspect and supervise the implementation of relevant matters and report to the Board of Directors.·Perform other duties as authorized by the Board of Directors. Stable and reliable partnerships Performing contracts in accordance with the law
Achieving integrity and mutual benefit Cooperation with integrity
·Formulate the Company's ESG strategic plan and related policies and systems. Promoting industry development and Open tendering
·Drive the execution of the ESG strategy and the fulfillment of related responsibilities. Suppliers technological progress Conducting supplier communication and training sessions
· Establish and improve the ESG work reporting mechanism and regularly report progress to the Strategy
Management ESG Management and Development Committee.Level Working Group ·C ollect and analyze stakeholder demands and organize the formulation of the Company's strategies
and measures to address ESG impacts risks and opportunities.Promoting employment Localized employment
·Organize the preparation and disclosure of the annual ESG report. Serving community development Organizing volunteer and public welfare activities
·Coordinate and advance other ESG-related work.Community Engaging in public welfare charity and rural Active communication and exchange with the community
· Collect and submit data on ESG-related indicators and report progress and key actions as required for revitalization Actively promoting consumption-driven poverty alleviation initiatives
the annual report preparation.· Establish and improve specific ESG management systems within their respective areas of responsibility.Functional ·I mplement management measures corresponding to each topic. Building a collaborative innovation platform
Execution Level Departments and · Conduct stakeholder communication based on departmental responsibilities and respond to
Engaging in industry cooperation Participating in the development of industry standards
Subsidiaries reasonable requests. Promoting industry-university-research Participating in exhibitions
· Cooperate in the collection and organization of ESG information. Partners collaboration Attending industry summits and forumsParticipating in industry-related associations
· Participate in ESG awareness training and other activities organized by the Company. Participating in industry-university-research cooperation
· Perform other ESG-related duties.
19 202025 Environmental Social and Governance (ESG) Report
Double Materiality Analysis Contributing to the UN SDGs
Based on extensive communication with stakeholders and in accordance with the Guidelines No. 14 of Shanghai
SDGs Responsible Actions of YIFI Laser Chapter Index
Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (Trial) the Guide No.4 for Self-
Regulatory Supervision on Listed Companies of the SSE - Compilation of Sustainable Development Reports and the ·E stablish a sound compensation and benefits system and enhance employee income
through compensation and benefit policies such as employee stock ownership platforms ·I lluminating Hearts Building a
GRI Sustainability Reporting Standards the Company adheres to the principle of double materiality. By integrating IPO strategic allotment and performance bonuses. Harmonious Ecosystem Together
expert advice and referencing advanced industry practices we systematically review and dynamically optimize
· Emphasize the construction of a safety standardization system and obtain and maintain a
material topics to identify those with financial materiality and impact materiality. Based on the identification results valid ISO 45001 Occupational Health and Safety Management System certification.·I mplement and promote 5S management.the Company promotes targeted management and information disclosure of relevant topics responds to them in this · Organize and implement multiple company-level and departmental-level safety emergency ·I lluminating Hearts Building a
report and continuously advances the implementation of sustainable development goals. drills achieving 100% safety training coverage. Harmonious Ecosystem Together·P rovide employees with PPEs.· Provide mental health support for employees.· Organize diverse and enriching employee activities.YIFI Laser 2025 Double Materiality Matrix
·Advance the tiered talent development program. ·I lluminating Hearts Building a
·Employee training coverage rate reached 100%. Harmonious Ecosystem Together
8718
3 1 ·P romote gender equality and job diversity gradually increase the proportion of female ·I lluminating Hearts Building a
10 employees and pay close attention to the well-being of female employees. Harmonious Ecosystem Together25 5 2
14 6 9 ·I mplement multiple water-saving measures for production and domestic water use and ·I lluminating Hearts Building a
11 install water-saving valves or faucets to prevent leaks and drips. Harmonious Ecosystem Together
15
12
13 · Actively promote the use of clean energy by installing PV power stations on factory rooftops. · Illuminating Hearts Building a
·Install new energy vehicle charging stations in the industrial park. Harmonious Ecosystem Together
16
·O ptimize the organizational structure and promote highly matched job placements through
a combination of internal selection and external recruitment. ·I lluminating Hearts Building a
·A dopt diverse employment forms including full-time employees project-based personnel Harmonious Ecosystem Together
and hourly workers to safeguard employee compensation and benefits.
17 19 21 · As the leading enterprise in the "new energy battery laser application industrial chain" we ·F eature: Platform Enhancement
4 have constructed a novel innovation platform integrating "R&D innovation - engineering and Multi-Dimensional Expansion:
20 23 transformation - analysis and testing" actively promoting the industrialization of leading The "Laser + Intelligent Equipment"
technologies in the advanced new energy battery and laser industries. Strategy Driving a New Paradigm of
22 · Provide talent and financial support for technological innovation and improve R&D incentive Sustainable Developmentmechanisms. ·I lluminating a New Chapter Driving
·D evelop green technologies with low energy consumption high flexibility and intelligent Industrial Progress
26 capabilities. ·I lluminating Nature Practicing
·Actively promote photovoltaic power generation. Green Development
24 · Ensure compliant information disclosure safeguard investor rights and interests and
guarantee the right of small and medium-sized investors to participate equally in corporate ·I lluminating Foundations Fortifying
governance. Sustainable Roots. Illuminating
· Practice equal employment and promote gender equality and job diversity. Hearts Building a Harmonious
Low Financial Materiality High ·A ctively engage in public welfare initiatives focusing on education health and poverty Ecosystem Together.alleviation and give back to society through charitable donations and other means.
1 Innovation-driven 9 P roviding green and low-carbon 18 I nternal control compliance and risk ·Build a responsible supply chain to promote its security stability and green development.
products management ·Reduce production energy consumption and resource consumption. · Illuminating a New Chapter Driving
2 Industrial Progress P roduct and service safety and quality ·Increase the proportion of clean energy usage.
10 Pollutant emissions 19 Social contributions ·E nsure compliance in the discharge of waste gas wastewater and solid waste to reduce
· Illuminating Nature Practicing
environmental pollution. Green Development3 O ccupational health and safety
production 11 Employee training and development 20 Rural revitalization
· Integrate climate change response into the Company's strategy continuously enhancing our
4 12 resilience to climate change risks and our ability to seize climate-related opportunities. · Illuminating Nature Practicing Addressing climate change Employee rights and benefits 21 Fair treatment of SMEs ·A lleviate environmental burdens by optimizing the energy mix and reducing emissions and Green Development
carbon footprints.
5 Digital transformation 13 Data security and customer privacy 22 Due diligence
protection ·Improve the ESG governance structure to promote sustainable operations.
6 E nvironmental compliance 23 Supply chain security · Uphold business ethics and continuously optimize the anti-corruption management system. · Illuminating Foundations Fortifying
management 14 Waste management Suppliers are required to sign the Integrity Agreement and employees must sign the Integrity Sustainable Roots
24 Ethics of science and technology Commitment Letter.
7 Stakeholder engagement 15 Energy utilization
25 Fair competition · Establish strategic partnerships with industrial chain partners to promote the construction of · Illuminating a New Chapter Driving
8 Anti-commercial bribery and anti- 16 Water resources utilization a joint innovation ecosystem. Industrial Progress
corruption 26 E cosystem and biodiversity protection · Participate in industry associations take the lead in standard development and organize or · Illuminating Hearts Building a
17 participate in technical seminars. Harmonious Ecosystem Together Circular economy
2122
High Impact MaterialityFeature 2025 Environmental Social and Governance (ESG) Report
Platform Enhancement and Multi- Innovation Certifications: Comprehensive layout of national and provincial innovation platforms solidifying the foundation for technology R&D and engineering transformation
Dimensional Expansion:The "Laser +
Intelligent Equipment" Strategy Driving a
New Paradigm of Sustainable Development
In 2025 focusing on the strategic direction of "Laser + Intelligent Equipment" YIFI Laser continuously advanced
its platform capabilities and expanded multi-scenario applications establishing a continuous innovation system
synergistically driven by "laser technology intelligent equipment technology and process applications." Leveraging
its accumulated system integration and engineering capabilities while solidifying its core business of intelligent
precision laser processing equipment the Company accelerated its expansion into cutting-edge fields such as solid-
state batteries PV perovskites and embodied intelligence. This has driven a shift in key technologies from single-
point breakthroughs to platform-enabled empowerment and industrial synergy.By establishing a collaborative innovation platform for new energy battery laser applications and a high-end Innovation Resources: Pooling the strengths of universities and research institutions to promote a multi-
equipment innovation hub the Company continuously strengthens its capabilities in R&D validation engineering dimensional collaborative innovation ecosystem
transformation and scale replication. While enhancing the collaborative efficiency of the industrial chain this injects 产学研合作
sustained momentum into the upgrading of green manufacturing and the high-quality development of emerging
industries.
01 R&D Support: Building a Novel Innovation Platform to Strengthen
the Foundation of Sustainable Development Capabilities
Innovation Assurance: Building a laboratory system aligned with international standards to strengthen support
for analysis testing and engineering verification
YIFI Laser has established a novel innovation platform integrating "R&D innovation - engineering verification - analysis
and testing" emphasizing the continuity integrity and reliability of innovation activities forming a closed-loop R&D
system oriented towards industrialization.In terms of organizational structure and capability allocation the innovation platform is equipped with 23 specialized
laboratories covering areas such as advanced laser components laser systems laser processes intelligent software
intelligent equipment and digital twins. It is supported by over 200 sets of advanced equipment including industrial
CT scanners scanning electron microscopes X-ray diffractometers beam quality analyzers spectrophotometers and
electrical performance testing equipment. The platform enables 119 analysis and testing items related to mechanical
structure material composition optical performance electrical performance safety and other aspects. It has also
established full-industry-chain pilot-scale verification platforms for battery structural components cell pilot-scale
verification battery pack application and battery recycling and disassembly. Aligned with the needs of industrial
transformation and upgrading the platform serves the innovation R&D engineering verification testing certification
performance testing and commercialization of technological achievements needs of the new energy battery industry
chain. It conducts targeted technology development initiatives enhances innovation efficiency increases the value of
achievement transformation and empowers high-quality industrial development. CNAS Laboratory Accreditation
23 242025 Environmental Social and Governance (ESG) Report
02 Platform Enhancement: Enhancing Replicability Through System Leveraging the collaborative innovation platform for the new energy battery laser application industrial chain
Integration via "Modularization - Standardization - Productization" the Company organically integrates lasers optical components intelligent software engineering capabilities and
key links in the battery industry chain. This establishes an integrated support system covering "R&D - engineering
In the process of industrializing equipment and processes YIFI Laser regards "system integration" as one of its core verification - analysis and testing - industrial application." Through the coordinated operation of the New Energy
capabilities for high-end new energy intelligent equipment. Centered on the principles of "modularizing system Battery Laser Application R&D Center Engineering Verification Center and Analysis and Testing Center the Company
integration standardizing unit modules productizing standard systems and serializing product equipment" we achieves end-to-end integration from material adaptation and process development to final equipment assembly
build a system for capability accumulation and large-scale reuse driving the upgrade of equipment delivery from enhancing the reliability and replicability of its system solutions.stand-alone units to systematic solutions. Industrial Chain Collaborative Innovation Platform
With system integration as the core advancing modularization standardization productization and serialization Laser + Laser Processes + Laser Equipment + Intelligent Software + Optical Components + Engineering
Capabilities etc.Cathode Materials
Laser processing system integration is the core of high-end new energy intelligent equipment Cell
Anode Materials Enterprises
Battery R&D Center for Laser
Modularizing System Integration Standardizing Unit Modules Structural Components Industry Applications in New Energy
Chain Batteries Module PACK
Other Battery Enterprises
Productizing Standard Systems Serializing Product Equipment Equipment
Supporting and Engineering Collaborative Innovation
Auxiliary Systems Validation Platform for Laser
Center for Laser Vehicle
Applications in New
Applications Enterprises
Light Source Materials Energy Battery Industry in New Energy
Chain
Batteries
Optical Components
Laser Photovoltaic/
Application
Laser Devices Analysis and Testing
Energy Storage
Industry Center for Laser Enterprises
Chain Applications in New
CNC/Software Energy Batteries
Hardware Accessories Other
Applications
Other Components
Standard Parts
CNAS Laboratory Accreditation+SGS Laboratory Certification+
UL Laboratory Certification+TUV Laboratory Certification
2526
R&D Testing and Engineering Application Integration
New Energy Battery + Laser Application Industry Chain Collaboration2025 Environmental Social and Governance (ESG) Report
03 Multi-Dimensional Expansion: Application-Oriented Multi-Industry 04 Cutting-Edge Layout: Empowering High-Quality Development of
Solutions Emerging Industries
Guided by an "application-oriented" innovation approach YIFI Laser extends its laser welding and turnkey line
solutions from new energy battery cells battery components and photovoltaic products to precision welding 1. Strategic Layout in Solid-State Batteries: Driving Industrialization Through Collaborative
and intelligent manufacturing in 3C electronics turnkey lines for module and PACK assembly and disassembly for Innovation
new energy vehicles/energy storage systems (ESS). It also expands into general-purpose automation solutions for
fields such as hydrogen fuel cells medical devices and the military industry including laser welding intelligent As new energy batteries accelerate towards higher safety and energy density solid-state batteries are gradually
manufacturing and laser cleaning. becoming a key development direction for the industry. Focusing on the critical aspects of solid-state battery
industrialization YIFI Laser continuously deepens its equipment innovation and industrial synergy.Focusing on the commercial application portfolio across multiple sectors including new energy equipment 3C
electronics new energy vehicles/energy storage and general automation In April 2025 YIFI Laser signed a strategic cooperation agreement with GF Energy to collaborate on equipment R&D
process optimization market promotion and industrial chain synergy for full-tab solid-state batteries and prismatic
aluminum-case solid-state batteries. Relying on its integrated "technology R&D - engineering transformation - analysis
New Energy Equipment New Energy Vehicles / Energy Storage
and testing" platform the Company collaboratively advances the development and process finalization of post-
Focusing on laser welding and turnkey Systems electrode section equipment for solid-state batteries contributing to the construction of an intelligent manufacturing
line solutions for new energy battery cells Focusing on turnkey line solutions for system for solid-state batteries. In September of the same year a breakthrough was achieved in their joint innovation –
battery components and photovoltaic module PACK assembly and module the first batch of "Wuji" all-solid-state lithium-metal cylindrical batteries passed verification and were officially delivered
products disassembly for new energy vehicles/ to an international top-tier customer marking progress in commercial application.Commercial energy storage batteries
Applications The Company has applied new technologies such as high-
dynamic laser processing closed-loop monitoring system
for laser processing quality precision customized laser
3C Electronics General Automation
tempering system and high-speed laser drying process
Focusing on precision laser welding and Focusing on laser welding intelligent for electrodes to the electrode sheet manufacturing stage
intelligent manufacturing solutions for manufacturing and laser cleaning of solid-state batteries. It has developed ultra-fast laser
the 3C electronics industry solutions for industries such as hydrogen processing equipment and laser grooving equipment.fuel cells hardware and home appliances Through cooperation and exchanges with multiple
medical devices and military applications renowned research institutions and customers in the
industry the Company jointly promotes the R&D and market
In terms of application layout the Company's collaborative innovation achievements feature capabilities such as application of solid-state battery equipment and has
"magnetic levitation turret technology intelligent logistics flexible automated production lines and photovoltaic gradually achieved the sales and delivery of some products.intelligent equipment" providing tangible engineering tools for promotion across multiple scenarios.Committed to empowering multi-scenario applications of high-end new energy intelligent equipment
Furthermore technological breakthroughs in the field of intelligent logistics have further enhanced the Company's overall solution
service capabilities covering the entire process from raw material warehousing production flow to finished product outbound.Targeting high-cleanliness and high-precision scenarios such as semiconductors it has formed integrated solutions from hardware
equipment to software control providing support for the engineering implementation of solutions across multiple industries. YIFI Laser's Solid-State Battery Structure and Process Verification Laboratory and Related Equipment
27 282025 Environmental Social and Governance (ESG) Report
In November 2025 at the CBIS2025 International Summit on Power Battery Applications the Company systematically Concurrently the showcased energy storage battery assembly solutions cover the entire process from individual cell
elaborated on its practical path of "intelligent equipment empowering the industrialization process of solid-state assembly to containerized energy storage system assembly. Through modular flexible manufacturing core process
batteries." Concurrently it was honored with the "Influential Company of the Year" and "Innovative Company of the integration and collaborative line design the path from single-line production to system integration is paved
Year" awards further demonstrating its industry influence in the field of solid-state battery equipment. providing manufacturing support for "PV-storage integration" applications.By promoting the upgrading of high-efficiency photovoltaic cell manufacturing processes the Company continuously
provides equipment support for the large-scale application of clean energy.
3. Exploring the Frontiers of Embodied Intelligence: Extending the Application Boundaries of High-
End Equipment
While consolidating its layout in new energy battery
equipment YIFI Laser leverages its high-end equipment
engineering capabilities to expand into the fields of
The Company received the honors as the Influential Company of the Year and Innovative Company of the Year in the embodied intelligence and humanoid robots exploring
9th China Battery Industry "Lithium Dream Award" the integrated application of intelligent equipment in
emerging industries.Our innovative practices not only advance the industrialization of solid-state batteries but also provide key equipment
support for the low-carbon transformation of the new energy system by enhancing energy density and safety. In April 2025 YIFI Laser together with Professor Ding
Han's team from Huazhong University of Science and
2. Expanding into Third-Generation Photovoltaics: Extending Applications of Perovskite Battery Technology the Wuhan Institute of Industrial Innovation
Intelligent Equipment and De velopment (WHII ID) and Wuhan Shouyi
Technology Innovation Investment Development Group CCTV News coverage of Jingchu humanoid robots
Against the backdrop of continuous photovoltaic technology upgrades third-generation PV perovskite batteries have jointly initiated the establishment of Hubei Jingchu Humanoid Robot Co. Ltd. In May the signing ceremony for the
become a cutting-edge focus of the industry. Addressing the manufacturing needs of next-generation photovoltaic "Jingchu" humanoid robot industrialization project was completed propelling the first demonstration project into
cells YIFI Laser actively deploys laser intelligent equipment solutions for perovskite batteries. the industrialization phase.In June 2025 the Company presented its innovations at the SNEC PV+ES International Photovoltaic Power Generation In September of the same year the "Hubei Humanoid Robot Technology Innovation Center" established with the
and Smart Energy Conference focusing on two main areas: "Third-generation Perovskite PV Cell Intelligent participation of "Jingchu" humanoid robots was inaugurated. This center focuses on the R&D of key common
Equipment" and "Energy Storage Battery System (ESS) Assembly Solutions." technologies for embodied intelligence aiming to create an innovation platform integrating technology R&D
achievement transformation talent cultivation and industry incubation.In the perovskite battery manufacturing process the Company employs ultra-fast laser processing technology to
achieve micron-level high-precision machining covering key processes such as scribing edge cleaning drilling and
cutting achieving full process coverage from P1 to P6. Through the application of beam shaping technology and an
energy closed-loop monitoring system high-efficiency high-quality and highly stable processing is achieved with As high-end equipment evolves towards intelligence YIFI Laser continuously strengthens its independent R&D and
equipment utilization rates exceeding 98%. collaborative innovation capabilities strengthening its competitiveness in future-oriented industries
29 30202052 E5n Evnirvoirnomnmenetnatla lS Soocicaial la anndd G Goovveerrnnaannccee ( (ESG)) Report
01 Illuminating Foundations Fortifying Sustainable Roots
YIFI Laser consistently complies with laws and regulations upholds the principle of prudent operations and
continuously improves its corporate governance structure internal control system and risk prevention mechanisms.It integrates standardized management and the fulfillment of responsibilities throughout the entire operational
process. The Company prioritizes the timeliness of information disclosure and the smoothness of communication
channels actively responds to investor demands diligently protects shareholders' rights and interests and strives to
enhance governance transparency and operational standardization. Furthermore YIFI Laser adheres to the principle
of integrity strictly follows business ethics and actively cultivates a corporate culture of integrity and self-discipline
solidifying the foundation for high-quality and sustainable development.
31 322025 Environmental Social and Governance (ESG) Report
Improving Governance Fortifying Foundations During the reporting period the Company convened a total of 3 General Meeting of Shareholders reviewing 12 proposals. All meetings were convened in compliance with laws and regulations safeguarding the right to
information and participation of all shareholders especially small and medium investors. The meetings adopted a
combination of on-site and online voting to ensure equal participation of shareholders in voting.Guided by the principle of sustainable development YIFI Laser continuously optimizes its corporate governance
structure and internal control system strengthens the effectiveness of Board governance improves the quality
of information disclosure safeguards shareholders' rights and interests and promotes the modernization of its
corporate governance system and governance capabilities. Board Governance
The Board members are diverse and complementary in terms of age professional background and industry experience
Governance Structure possessing multidisciplinary knowledge in fields such as law accounting management mechanical manufacturing and
new energy batteries. This provides a solid guarantee for the Company's strategic decision-making. As of the end of the
reporting period the Board of Directors consisted of 9 directors including 3 independent directors accounting for 33.33%
In strict accordance with the Company Law of the People's Republic of China the Securities Law of the People's of the total Board members. During the reporting period the Company held a total of 8 Board meetings reviewing 36
Republic of China other relevant laws and regulations and the Articles of Association the Company has established proposals covering major issues such as company strategy finance governance investment and personnel. The meeting
a comprehensive governance structure. The Board of Directors has established four specialized committees: the procedures were legal and compliant and the decision-making process was transparent and well-structured.Strategy and Development Committee the Audit Committee the Nomination Committee and the Remuneration and
Appraisal Committee. Each committee has clear responsibilities and operates in a standardized manner providing The four specialized committees under the Board of Directors all operated in a standardized manner according to their respective
robust support for the Board's scientific decision-making. rules of procedure. During the reporting period they held a total of 5 meetings of the specialized committee reviewing multiple
proposals covering strategic planning financial auditing remuneration plans and nominations and appointments.Organizational Structure
Board Independence
General Meeting of
Strategy and Development Shareholders The Company places great emphasis on the independence of the Board of Directors and strictly appoints independent
Committee
directors in accordance with regulatory requirements. All independent directors possess professional backgrounds
in law accounting etc. and have no interests in the Company that might affect their independent judgment. The
Board of Directors
Audit Committee Company continuously improves the working mechanism for independent directors. Based on the previously issued
Detailed Rules for the Special Meeting of Independent Directors the focus during the reporting period was on
Board of Directors Office
promoting the implementation of these rules. By convening special meetings the independent directors effectively
Remuneration and
fulfilled their supervisory duties significantly enhancing the scientific and independent nature of Board decisions.Appraisal Committee General Manager
During the reporting period the Company held 1 special meeting of independent directors where they issued
Nomination Committee independent opinions on matters such as major operational decisions and related-party transactions fully leveraging
General Manager's Office their supervisory role in corporate governance.General Meeting of Shareholders Training for the Board and Senior Management
The Company places great importance on building compliance awareness and enhancing the performance capabilities of
The General Meeting of Shareholders is the highest authority of the Company and exercises the decision-making power its directors and senior management. During the reporting period the Company actively organized senior management
over major matters of the Company in accordance with the law. Strictly following the Company Law the Articles of to participate in online and offline training hosted by institutions such as the Shanghai Stock Exchange Hubei Regulatory
Association and regulatory requirements the General Meeting of Shareholders reviews and approves the Company's Bureau of the China Securities Regulatory Commission (CSRC) and the Listed Companies Association of Hubei. The
annual report profit distribution plans increase or decrease of registered capital significant investments related-party training focused on systematic learning of corporate governance information disclosure and risk control continuously
transactions and share repurchases ensuring standardized operation and transparency in corporate governance. enhancing governance capabilities.
33 342025 Environmental Social and Governance (ESG) Report
Organizing Senior Management Training to Continuously Improve the Standardization of To enhance the cohesion and combat effectiveness of the Party organization the Company's Party branch meticulously
Corporate Governance planned and organized multiple thematic education activities in Party spirit in 2025.In December 2025 the Company organized a special training session on "Compliance Management of Major
Information and Shareholding Behavior for Listed Companies" for senior management and heads of various Special Screening for Women's Day: "Forging Spirit with Light and Shadow·The Power of Women"
business departments (including subsidiaries) inviting external professional lecturers to conduct the session.The training adopted a format combining offline lectures with practical demonstrations aiming to strengthen To celebrate International Women's Day on March 8 the Company planned a themed screening event in March
the compliance awareness and performance capabilities of directors and senior executives. Through this 2025 titled "Forging Spirit with Light and Shadow · The Grace of Women." The activity focused on learning
training all participants further clarified the core the noble spirit of "perseverance and selfless dedication" from Principal Zhang Guimei combining Party spirit
points of compliant operations ensuring the effective education with care for women. It inspired female employees to shine in their positions fostering a positive
implementation of major information management and energetic corporate culture.processes and shareholding behavior norms in
daily operations thereby solidifying the governance
foundation for the Company's high-quality development.Party Building Leadership Building Consensus
YIFI Laser consistently adheres to the deep integration of Party building with corporate development using high-
quality Party building to guide the high-quality development of the enterprise. In 2025 the Company's Party branch
continuously strengthened its political guiding role embedding Party building work into all aspects of business
operations talent cultivation and corporate culture construction. Through various forms of organizational activities
and practical initiatives it built consensus among all employees and inspired them to strive forward.The Company's Party branch adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics
for a New Era deeply studies and implements the spirit of the 20th National Congress of the Communist Party
of China and its plenary sessions and regards the education in Party spirit as the cornerstone for building team
consensus. It actively explores the "Party building + business" integration model encouraging Party members to play
a vanguard and exemplary role in core businesses and key projects.Leveraging the Vanguard Role of Party Members to Build High-Efficiency Delivery Teams
On February 15 2025 the Company's Party branch organized a special training session themed "Forging
Leaders – An Organization with Strength." The event invited external experts to conduct a special lecture titled
"Forging Leaders: How to Build Capabilities Within the Organization" and organized practical drills with Party
members as the core participants. Representatives of Party members
used the "GROW model" to simulate project delivery team building
scenarios on-site transforming their Party spirit into leadership for
solving practical business challenges. This activity covered all Party
members Party membership applicants and key representatives from
various departments effectively promoting the mutual reinforcement
of Party building momentum and business performance.
35 362025 Environmental Social and Governance (ESG) Report
Strengthening Internal Control Strictly The Company conducts an annual internal control self-assessment prepares the Internal Control Self-Assessment Report and discloses it along with the annual report after review by the Board of Directors. Based on the assessment
Adhering to Compliance report and related materials provided by the Audit Department the Audit Committee issues an annual internal control self-assessment report on the establishment and implementation of internal control systems related to
financial reporting and information disclosure affairs. During the reporting period the Company's internal control
YIFI Laser consistently adheres to compliant operations continuously improves its internal control system system operated effectively and no material weaknesses in internal control over financial reporting were identified.strengthens risk management capabilities and strictly upholds the bottom line of business ethics. In 2025 the
Company further enhanced governance effectiveness and ensured stable operations and sustainable development
by revising internal audit systems optimizing anti-fraud mechanisms and deepening the cultivation of a culture of
integrity. Business Ethics
Risk Management
Anti-Commercial Bribery and Anti-Corruption
The Company achieves the identification assessment and tracking of significant risks through its internal audit
mechanism. The Audit Department focuses on high-risk areas in its annual audit plan including external investments
external guarantees related-party transactions and the use of raised funds. It promptly identifies internal control The Internal Audit System incorporates anti-corruption and anti-fraud as key focuses of audit work. The Audit
deficiencies and potential risks during the audit process. For any identified material deficiencies or significant risks Department assists in establishing and improving anti-corruption and anti-fraud mechanisms identifies key areas
the Audit Department must immediately report to the Audit Committee and urge relevant responsible departments critical links and main content for anti-fraud efforts and focuses on and inspects potential fraudulent risk behaviors
to formulate corrective measures conducting follow-up reviews to ensure risks are controllable. during internal audits. The Audit Department exercises its audit authority independently free from interference by
other departments or individuals ensuring effective supervision of corrupt practices.Internal Control and Compliance In terms of governance structure the Audit Department is accountable to the Board of Directors and the Audit
Committee receives supervision and guidance from the Audit Committee and reports its work to the Audit
The Company has established an independent Audit Department as its internal audit body which operates under the Committee. All internal departments controlled subsidiaries and associated companies with significant influence on
leadership of the Board of Directors is accountable to the Audit Committee and receives supervision and guidance the Company are obliged to cooperate with audit work.from the Audit Committee. The Audit Department is independent of the Finance Department and other business
departments ensuring the objectivity and authority of its audit work. The Company has established reporting channels and set up whistleblower protection mechanisms to safeguard the
legitimate rights and interests of whistleblowers and auditors providing a solid guarantee for the smooth progress of
anti-fraud work. The system specifies serious disciplinary measures for responsible personnel who violate financial
The Audit Department performs the following core duties:
regulations or engage in fraudulent behavior. This reflects the Company's firm stance of "zero tolerance" towards
commercial bribery and corruption.C onduct audits on the effectiveness of financial revenues and expenditures economic activities and internal
controls. For every employee upon joining the company we require them to read the Employee Handbook to understand
I nspect and evaluate the completeness rationality and implementation effectiveness of the internal control the employee code of conduct and areas requiring special attention regarding business ethics. We also organize
system. integrity training for employees to reinforce their awareness of honesty and self-discipline. To ensure the compliance
and integrity of business activities we require partners to adhere to business ethics standards and include integrity-
A ssist in establishing and improving anti-fraud mechanisms identify key areas critical links and main content
related clauses in contracts. Any violations will be dealt with seriously. During the reporting period there were no
for anti-fraud efforts and focus on and inspect potential fraudulent behaviors during audits.lawsuits filed against the Company related to commercial bribery or corruption.C onduct special audit investigations covering business processes such as sales and collections purchases and
payments inventory management fixed asset management fund management investment and financing
management significant transactions and matters human resource management information system Anti-Unfair Competition
management and information disclosure affairs management.R egularly or irregularly inspect fund transactions between the Company and related parties issuing special
reports at least quarterly to prevent related parties from occupying or transferring Company resources. We are committed to fostering a fair and just market order and promoting positive interactions with our partners.R eport the execution of the audit plan and identified issues to the Audit Committee quarterly. To this end the Company strictly requires all employees to abide by the principles of fair competition and always
conduct business operations with integrity as the foundation.
37 382025 Environmental Social and Governance (ESG) Report
Transparent Communication Safeguarding Executive share purchases: The Company's senior executives actively purchased the Company's shares to stabilize
market confidence through concrete actions. Mr. Wu Xuan Chairman of the Board purchased 302013 shares of
Rights and Interests the Company representing 0.32% of the Company's total share capital for a total consideration of RMB 9026700
(including transaction fees such as brokerage commissions). Mr. Zhao Laigen Director and Deputy General Manager
YIFI Laser consistently adheres to the "investor-centric" philosophy striving to build an open transparent efficient
purchased 242420 shares of the Company representing 0.25% of the Company's total share capital for a total
and smooth investor relations management system. By improving information disclosure mechanisms enriching
consideration of RMB 7550432.91 (including transaction fees such as brokerage commissions).investor communication channels and implementing measures to safeguard rights and interests it continuously
enhances investor trust and promotes the Company's high-quality development. Regular Communication and Feedback: The Company responds promptly to investor concerns through channels
such as the investor hotline email and interactive platforms achieving a 100% resolution rate for complaints
Investor Relations Management and suggestions. Through various forms such as SSE E-Interaction investor research visits performance
briefings and broker strategy conferences the Company achieves deep connections with the capital market
The Company strictly complies with laws and regulations including the Company Law of the People's Republic
fully listens to investor suggestions and continuously optimizes its governance practices.of China and the Self-Regulatory Guidelines for Listed Companies on the SSE STAR Market No. 1 - Standardized
Operations . It has formulated foundational systems such as the Articles of Association and the Information Disclosure
Management System and continuously promotes the implementation of the Investor Relations Management System
The Company places great importance on two-way communication with investors and has built a diversified investor
to further improve the investor relations management framework ensuring that all work is guided by rules and
communication platform.operates in a standardized manner. The Company adheres to the principles of equality integrity and compliance to
safeguard the right to information and participation of all shareholders especially small and medium investors.Information Disclosure Mechanism Investor Relations Email: ir@yifilaser.com Investor Relations Hotline: 027-87592246
Following the principles of "truthfulness accuracy completeness timeliness and fairness" in information disclosure
the Company diligently fulfills its information disclosure obligations and continuously improves the quality and
transparency of its disclosures. In addition to routine statutory disclosures the Company proactively adds voluntary
information disclosure content using concise clear and easy-to-understand language combined with diverse Key Performance
presentation methods such as images and tables to enhance the readability of periodic reports and interim
During the reporting period the Company actively interacted with investors through the following methods:
announcements ensuring all shareholders and creditors have equal and convenient access to Company information.· Regularly convened performance briefings holding a total of 4 sessions.Protection of Investor Rights and Interests · Hosted over 50 investor research visits and broker strategy conferences extensively listening to investor
opinions and suggestions.The Company prioritizes shareholder interests and adopts multiple measures to protect investor rights and · E stablished an investor hotline with dedicated personnel handling over 1000 calls throughout the year
interests:
achieving a 99% satisfaction rate for problem resolution.Equal Participation in Governance: The General Meeting of Shareholders provides on-site and online voting · R esponded to 210 investor inquiries on the SSE E-Interaction platform maintaining a high level of proactive
methods ensuring that small and medium investors can exercise their voting rights equally; all 3 general response rate.meetings of shareholders held during the reporting period allowed institutional investors and natural person
investors to participate in voting.Sustained Cash Dividends: Strictly adhering to the profit distribution policy the Company formulates annual
dividend plans balancing operational development and shareholder returns to ensure a virtuous cycle of capital Digital-Intelligent Integration Enhancing
investment and long-term value creation. Efficiency
Active share repurchase with partial cancellation: The Company successively launched two share repurchase
plans. Under the second share repurchase plan it repurchased a total of 2.2908 million shares for a total
consideration of RMB 77.7056 million (excluding transaction fees such as brokerage commissions) of which Guided by the policy of "strategy-led technology-driven intelligent manufacturing and continuous improvement"
1 million shares were cancelled. This increased earnings per share preserved corporate value and effectively YIFI Laser regards information resources as a strategic foundational asset. It fully leverages the important role of data
enhanced returns to shareholders. development and utilization in optimizing resource allocation and operational management promoting interactive
innovation and continuous optimization of data technology business processes and organizational structure.
39 402025 Environmental Social and Governance (ESG) Report
Integration of Informatization and Industrialization Organizational Structure of the Integration of Informatization and Industrialization Management
Management
General Manager
In 2025 in accordance with the GB/T23001-2017 Requirements for the Management System for the Integration of
Informatization and Industrialization and the GB/T23006-2022 Classification Requirements for New Capabilities of the Management Representative
Management System for the Integration of Informatization and Industrialization the Company upgraded and released
the Management Manual for the Integration of Informatization and Industrialization systematically advancing the
digital-intelligent transformation to comprehensively enhance operational efficiency and competitiveness.The Company's Integration of Informatization and Industrialization management system is personally promoted by
the General Manager ensuring its deep integration with the Company's strategy. The Management Representative
is specifically responsible for the establishment implementation maintenance and improvement of the system
coordinating the planning of new capabilities process control and continuous optimization. Each functional
department has clear responsibilities and operates with high efficiency and synergy forming a digital-intelligent
governance structure covering the entire organization.Practical Measures
Digital-Intelligent Progress
YIFI Laser empowers the transformation and upgrading of traditional industries with AI informatization and
digital technologies. It continuously increases investment in digital operations management establishes and · Implemented a comprehensive digital management upgrade project constructing a group-level project
improves the Integration of Informatization and Industrialization management system and promotes the in-depth operation and management platform covering all aspects of production and operation including finance
application of digital technologies in R&D innovation laying a solid foundation for comprehensive enterprise digital warehouse quality procurement technology sales planning and production to enhance the integration
management. Adhering to the Integration of Informatization and Industrialization policy of "strategy-led technology- of business and finance refine project cost management increase project schedule transparency and
driven intelligent manufacturing and continuous improvement" the Company accelerates the integration of strengthen group-level operation and control capabilities.information technology and manufacturing technology to provide customers with intelligent products and intelligent
manufacturing solutions. Simultaneously it utilizes digital and intelligent equipment and MES systems to enhance
intelligent manufacturing management levels and production operation efficiency accelerating the realization of
intelligent manufacturing.· Promoted the interconnection and data interoperability including automatic transmission collection
Management System aggregation and analysis across systems such as PDM OA T100 and MES enabling automated capture of
process parameters related to personnel machinery materials and methods in production operations.The Company has established and improved its management
system for the integration of informatization and industrialization.In accordance with institutional requirements such as the
Requirements for the Management System for the Integration
of Informatization and Industrialization and the Classification · Established a fully digitized control system spanning R&D production quality operations and finance across
Requirements for New Capabilities of the Management System for all business processes strengthening control at critical nodes and significantly enhancing the Company's
the Integration of Informatization and Industrialization it formulated digital production and operation management level.the Management Manual for the Integration of Informatization and
Industrialization set up the management organizational structure The Company's project "YIFI Laser Promotes Digital Transformation of SMEs through Collaborative Innovation
for this integration and clarified the key functional responsibilities and Chain Development" was selected for the 2025 Wuhan "Chain Empowerment Jiangcheng" List of Typical
obtaining the AAA Certification for the Integration of Informatization AAA Certification for the Integration of Informatization SME Digital Transformation Case Studies
and Industrialization Management System. and Industrialization Management System
4142
Information Technology
Department
Planning Management
Department
Technology Center
Business Division
Procurement Department
Marketing Management
Center
Financial Center
Enterprise Management
Center202052 E5n Evnirvoirnomnmenetnatla lS Soocicaial la anndd G Goovveerrnnaannccee ( (ESG)) Report
02 Illuminating a New Chapter Driving Industrial Progress
Centered on building core technical capabilities and enhancing product value YIFI Laser systematically advances
key tasks including innovative R&D quality control customer service data security and supply chain collaboration.The Company supports product upgrades through technological breakthroughs ensures stable quality through
lean management strengthens information security through standardized governance and enhances the overall
efficiency of the industrial chain through collaborative mechanisms continuously solidifying the foundation for
sustainable development.
43 442025 Environmental Social and Governance (ESG) Report
Innovation Leadership Driving Development R&D Project Assurance and Innovation Mechanism
Adhering to its strategic positioning of "dedicated to laser innovation pioneering intelligent equipment upgrades" YIFI Laser focuses on To enhance the organizational efficiency and output of R&D activities the Company's materials propose ensuring
its core business of precision laser processing and intelligent equipment manufacturing. It has built an innovation system synergistically R&D projects from three aspects: incentive mechanisms innovation environment and project management.advancing technology R&D engineering verification and analysis and testing continuously strengthening core technical capabilities
and enhancing the system integration level and engineering
implementation capabilities of intelligent manufacturing
equipment.The Company's technology directions cover laser processes
engineering R&D intelligent software special laser equipment
precision mechanical components precision optical components A performance evaluation A cultural atmosphere that By formulating R&D project
and digital simulation forming a technology layout structure system has been established encourages innovation plans providing resource
synergistically supported by multiple R&D centers. linking R&D achievements to and tolerates failure support such as funding
performance bonuses and is fostered promoting equipment and personnel
annual rewards and setting cross-departmental and establishing risk early
Governance up internal awards such as communication and warning mechanisms
"Innovation Star" and "Best collaboration. R&D projects are ensured to
R&D Team." Additionally personnel are encouraged proceed orderly according
R&D Organization and Platform Capability Building extra incentives are provided to participate in academic to goals and milestones
for innovative ideas technical conferences exhibitions and reducing the risk of failure.The Company relies on the Engineering Technology Research Institute to build the foundational capabilities of solution improvements industry seminars to track
its innovation platform. The Institute covers an area of approximately 10000 m2 houses 23 laboratories has over authorized patents and technological trends and gain
400 R&D technical personnel offers 119 analysis and testing items and has invested in a total of 252 equipment scientific papers. inspiration.
and instruments (including 86 for manufacturing and 166 for analysis and testing). It covers multiple professional
directions such as optics machinery electronics and software providing systematic support for process verification
structural testing material analysis and performance evaluation. By pre-positioning testing and verification
capabilities the Company strengthens the controllability of R&D activities and the reliability of outcomes providing
assurance for the engineering transformation of innovation results. Intellectual Property Management
The Company has defined its intellectual property policy
as "Technological Innovation Scientific Management;
Based on the Market Leading the Future." It emphasizes
enhancing core competitiveness through technological
innovation and ensuring the effective protection and
reasonable utilization of innovation results through
scientific management. Centered on this policy the
Company has set phased goals: from 2025 to 2028
continuously improve the quantity and quality of patents
and software copyrights maintain steady growth in
invention patents utility model patents design patents
and software copyrights ensure high-quality patents
account for over 80% and achieve an employee intellectual Intellectual Property Compliance Management System
Photo of the Research Institute property training coverage rate exceeding 95%. Certificate
45 462025 Environmental Social and Governance (ESG) Report
Organizational Assurance Strategy
The Company has established an intellectual property management framework coordinated by the top management
clarifying the top management as the primary responsible person for intellectual property management responsible Analysis of Impacts Risks and Opportunities and Response Measures
for approving policies and objectives allocating resources and organizing management reviews. Through a cross-
departmental collaboration mechanism the Company integrates functions such as the R&D Center Supply Chain Risks
Center Quality Management Marketing and Legal Affairs into the intellectual property management responsibility
system forming a collaborative management structure covering R&D procurement production sales and Impact Period (Short-
Risk Name Risk Description and Potential Impact term/Medium-term/ Response Measures
cooperation processes ensuring that intellectual property management requirements are embedded in business Long-term)
processes. The Company's products primarily serve the Continuously track industry
new energy battery manufacturing sector. If the technology changes; strengthen
Full-Process Management Technology Update industry's technology direction or customers' forward-looking technology
and Product production processes adjust rapidly and the Medium-term development around main
Adaptation Risk Company's product upgrade pace fails to match products; strengthen technical
In accordance with standard requirements the Company implements standardized management over the promptly it may affect market competitiveness and communication with core
order acquisition. customers.acquisition implementation maintenance and risk control of intellectual property. Patent searches and risk
Optimize R&D project
analyses are conducted during the R&D and design phases to clarify ownership of results and standardize application The Company maintains a high level of R&D evaluation and phase
processes. Potential intellectual property risks are identified during technology cooperation contract signing investment. If the transformation cycle of R&D management mechanisms;
and market promotion. Approval and recording mechanisms are established for the implementation licensing R&D Input-Output results is prolonged or the market promotion Medium-term / Long- enhance product
Mismatch Risk progress of new products falls short of expectations term standardization and
and transfer of intellectual property. Intellectual property investigations and value assessments are carried out in it may affect profitability levels and capital turnover modularization; strengthen
mergers and acquisitions investments and financing and major operational decisions. Meanwhile the Company efficiency. collaboration between R&D and
marketing.has established an intellectual property risk identification and response mechanism to strengthen infringement risk
prevention and dispute management safeguarding the Company's legitimate rights and interests. The Company is expanding its business into areas Clarify business development
New Business such as intelligent logistics. If the synergy between priorities and resource
Integration and the new business and the original automated Short-term / Medium- allocation; unify R&D processes
Training and Promotion Resource Allocation equipment business is insufficient it may lead term and technology platforms;
Risk to dispersion of R&D resources and increased strengthen cross-business
management complexity. collaboration mechanisms.To ensure the effective operation of the system the Company continuously invests in resource allocation training
and awareness enhancement. Through system promotion and training activities the Company enhances employees'
Opportunities
awareness of intellectual property compliance clarifies the consequences of violating intellectual property
management requirements and promotes the implementation of intellectual property management requirements at
Impact Period (Short-
all employee levels. Opportunity Opportunity Description and Potential Impact term/Medium-term/ Response Measures
Name
Long-term)
Supervision and Continuous Improvement Technological The continuous advancement of new energy Strengthen investment
Innovation Space battery manufacturing technology imposes in key technology R&D;
The Company has established internal audit and management review mechanisms to regularly inspect and evaluate Brought by the higher technical requirements on automatic Medium-term / Long- continuously optimize and
Upgrading of assembly lines and precision laser equipment term upgrade core products;
the operation of the intellectual property management system identify areas for improvement and formulate the New Energy creating development space for the Company to promote the industrialization of
corrective measures continuously enhancing the system's suitability adequacy and effectiveness. Industry continuously carry out technological innovation. technological achievements.Competitive Promote the standardization of
The Company's simultaneous layout of automated
Advantage product and system interfaces;
production lines and intelligent logistics equipment
from Enhanced Medium-term strengthen the development
helps enhance its overall solution capabilities and
Integrated Solution of overall solution design
strengthen market competitiveness.Capabilities capabilities.Accumulation of Improve the intellectual
Sustained R&D investment and intellectual property
R&D Capabilities property management
accumulation help consolidate the Company's
Enhances Long-term mechanism; promote the
technical foundation and brand reputation in the
Long-Term transformation of R&D results
new energy equipment field.Competitiveness into products and projects.
47 482025 Environmental Social and Governance (ESG) Report
Providing one-stop large-scale energy storage system solutions for overseas customers Striving for Excellence Strictly Controlling
The Company delivered a fully automatic Quality
energy storage container assembly line to an
overseas customer. This line is compatible with Adhering to the quality policy of "Stable Quality Attentive Service" we continuously improve the construction of
the assembly of prismatic battery systems with our quality management system and process control mechanisms focusing on customer needs and full product
capacities ranging from 50 to 314 Ah achieving lifecycle management. Using systematization standardization and digitalization as key drivers the Company
an annual production capacity of over 5 GWh. It promotes quality control throughout the entire process of design manufacturing delivery and service continuously
covers the entire process from cell handling to consolidating product reliability and delivery capabilities and fostering high-quality and sustainable development.PACK assembly and further to container assembly
and testing providing the customer with a one- Governance
stop large-scale energy storage system solutions.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." It links key quality management indicators with the performance evaluations of senior management and quality
management KPIs.Management of Impacts Risks and Opportunities
The Company has obtained ISO 9001 Quality Management System certification and Intellectual Property Management System
certification supported by the Integration of Informatization and Industrialization management system. It achieves 100%
YIFI Laser incorporates the impacts risks and opportunities related to technological innovation into its overall certification coverage in non-standard industries for quality-related certifications. It maintains the system's effective operation
risk management framework. It continuously carries out identification and assessment work in conjunction through internal audits management reviews and external audits. Concurrently it has constructed a secondary process
with its strategic planning and actual business development. Focusing on key links such as technology R&D network diagram and formulated a total of 40 procedure documents including the Control Procedure for Addressing Risks and
commercialization of R&D outcomes and market application the Company analyzes the impact of potential risks Opportunities the Control Procedure for Product Design Manufacturing and Delivery the Control Procedure for Nonconforming
and development opportunities on its business activities. It strengthens process management through internal Outputs and the Control Procedure for Continuous Improvement Measures. These cover key links such as quality risk prevention
review and dynamic tracking mechanisms promoting the steady progress of innovation activities while maintaining and control non-conforming product management compliance management and customer satisfaction control achieving
effective risk control. closed-loop control throughout the entire product quality management process and enhancing the visualization and process
correlation of system implementation. Relying on the ISO 9001 Quality Management System and the CNAS-accredited laboratory
the Company has established a 24-hour rapid tiered response mechanism using AI and 8D methodologies. It adheres to the
principles of zero defects zero customer complaints and zero accidents applying Six Sigma to achieve standardization in
Metrics and Targets customization as well as the reliability safety and sustainable development of non-standard products.Key Performance
During the reporting period:
Cumulative IP applications: 1095 New IP rights granted: 106
Valid IP rights held: 742 New IP applications filed: 51
Invention patents held: 158 R&D investment: RMB 111.36 million
Utility model patents held: 368 R&D investment as % of revenue: 13.87%
Design patents held: 18 Number of R&D personnel: 453 person(s)
Software copyright registrations held: 159 R&D personnel as % of total employees: 39.29%
YIFI Laser Quality Management System Certification New Cohesion Quality Management System Certification
49 502025 Environmental Social and Governance (ESG) Report
Full Lifecycle Quality Management Centered on the entire product realization process the Company has set up quality control activities and key
methods/tools covering "Design - Supply Chain - Processing - Assembly - Debugging - Delivery - After-Sales Service":
The Company has established an internal reporting mechanism for product and service safety and quality throughout Design Phase
the entire inspection process. Based on the Control Procedure for Release of Products and Services it clarifies
Conduct solution feasibility assessments DOE (Design of Experiments) validation DFMEA (Design Failure Mode
the reporting points and responsible entities for each inspection stage (incoming materials in-process finished
and Effects Analysis) prepare SOP (Standard Operating Procedure) documents output key technical indicators
products) with the Quality Management Department as the core lead department. Inspection abnormalities are
and perform cost-benefit analysis.immediately recorded in the Incoming Material Quality Anomaly Record Form and the LOP Process Record Form
and simultaneously fed back to relevant departments. Acceptance and release results are signed off and approved
step-by-step according to the process. Concurrently relying on ERP and ChuanYun systems quality information is Supply Chain Phase
processed online ultimately ensuring that quality information throughout the entire process is traceable feedback-
capable and subject to closed-loop control. Maintain the qualified supplier list conduct supplier research and visits perform supplier evaluations and
audits and promote continuous improvement and supplier coaching. The Company has formulated the
The Company has established a full-process product quality management system covering incoming inspection Control Procedure for Externally Provided Processes Products and Services clarifying the scope and division
in-process inspection finished product inspection and delivery review. Using the Control Procedure for Release of of responsibilities for external provider quality control. It also sets control requirements for key stages such
Products and Services as the guideline it clarifies the standards rights and responsibilities for each stage. From as procurement planning information transmission acceptance and release and non-conforming disposal.incoming material verification and in-process patrol inspection/self-inspection to finished product FAT (Factory Concurrently it requires evaluation selection and process supervision of external providers to ensure externally
Acceptance Test) pre-acceptance the entire process is controlled. Quality anomalies are immediately recorded provided processes products and services meet the Company's requirements.and rectified in a closed loop. Qualified products are released after multi-level approval. Relying on digital systems
quality information is traceable forming a standardized closed-loop quality management process. Processing Phase
Quality Assurance Mechanism Promote standardization of inspection specifications and SIP conduct MSA and SPC analysis perform PFMEA
assess processing drawing conformity optimize processing techniques and implement 8D and corrective
actions for continuous improvement.Advanced Quality
Planning Assembly Phase
Quality Policy Preventive Actions
In-Process Quality Implement patrol inspection standards and frequency monitor SOP compliance monitor assembly accuracy
Quality Objectives Planning Corrective Actions collect and organize inspection data conduct MSA and SPC analysis and implement 8D and corrective actions
Quality Improvement Quality Control Plan Customer Evaluation for continuous improvement.Organizational Ideological System Technical Methodology Information Debugging Phase
Assurance Assurance Assurance Assurance Assurance Assurance
Monitor cycle time and function conformity monitor debugging process records collect and organize debugging
Quality Management Quality Manual Incoming Material data conduct MSA and SPC analysis and implement 8D and corrective actions for continuous improvement.Leadership Team Inspection
Operating
QC Team Procedures Self-Inspection at Delivery Phase
Workstations
Quality Audit Task Force Work Instructions Form management actions including equipment FAT test reports delivery of accompanying documentation
In-Process Inspection
supervision of the delivery process closure of outstanding issues customer personnel training and project
review.After-Sales Phase
Collect customer complaint feedback conduct customer satisfaction surveys trace quality issues and analyze
equipment failures to promote problem closure and continuous improvement.
51 522025 Environmental Social and Governance (ESG) Report
Project Management Implementing a Special Action for Product Quality Improvement
Relying on a digital full-process management platform combined with systems such as ERP PDM MES and PLM From September to December 2025 the New Cohesion Engineering Center organized a "Product Quality Improvement"
the Company promotes digital management throughout the entire process from product R&D to delivery and activity establishing a special task force led by the Project Director and involving various functional departments. Addressing
acceptance enhancing the efficiency of responding to customer needs and the ability to achieve project goals. the issues of wrong and missing bulk materials for stackers in the AK056 Zenergy Yinhe Base automated logistics project the
Concurrently the Company builds an execution network centered around projects promoting collaboration among Company conducted a root cause analysis covering personnel material management and process control. It optimized the
R&D manufacturing delivery and after-sales stages. Through an integrated production and delivery ecosystem a delivery management process by improving material labeling establishing delivery BOM lists strengthening quality control
comprehensive manufacturing system and support from domestic and international after-sales teams it strengthens review mechanisms and implementing a "one main component with its corresponding bulk parts" delivery strategy. After
full-process delivery and professional service capabilities. implementation the BB065 Yunnan Kuntian project received no feedback on wrong or missing parts since its shipment. The
relevant measures were formalized into systems such as the Material Delivery Operating Procedures and the Finished Material
Digital Management and Control over the Full Project Lifecycle Inspection Procedures and were promoted and implemented throughout the Company.Digital Full-Process Management Platform One Central Hub Building an Efficient Execution
Network
Leveraging four intelligent systems: ERP PDM MES Aligned with the internationally recognized PMP
and PLM we achieve digital management throughout project management certification we adopt a
the entire process from product R&D to delivery and project-centric approach to drive the efficient
acceptance. This enables us to swiftly meet customer execution of the full project lifecycle encompassing All finished materials have added Quality control personnel inspect One main component is delivered
needs efficiently achieve project goals and ensure product R&D manufacturing delivery and after- material labels. assembly materials and issue a with its corresponding bulk parts
report upon qualification. realizing standardization of delivery
high-quality completion of delivery and acceptance. sales service. By consolidating efforts we build a materials.highly cohesive and professional team dedicated
to providing comprehensive project management
services to our clients throughout the project journey.Capability Enhancement and Cultural Development
Integrated Production and Delivery Ecosystem
Global After-Sales Teams and Professional Service Centered on the operation of the quality management system and the need to enhance job capabilities the Company
Forging a Comprehensive Manufacturing System
continuously conducts internal and external quality-related training. Through various training methods the Company
We integrate manufacturing with engineering We have established dedicated after-sales teams both strengthens employees' understanding and application of the quality policy procedure documents and quality tools
delivery creating an innovative and comprehensive domestically and internationally to support global enhancing frontline operational standardization and professional quality management capabilities continuously
manufacturing system that spans both business operations. Based on decades of after- consolidating the foundation of quality management.manufacturing and delivery processes. This sales data storage and analysis we have constructed
integration facilitates seamless communication a robust after-sales system that includes mail-in The Company adopts a comprehensive training system combining centralized online training on the Zhuoyi Academy
between manufacturing and delivery enhancing repair replacement and rapid response services. platform with offline PPT materials and OPL (One Point Lesson) single-point education.both manufacturing and delivery capabilities and This system ensures that we can provide professional
ultimately shortening project lead times. after-sales services to our customers worldwide. Key Performance
During the reporting period
Quality Enhancement and Improvement over 80 internal training sessions were conducted covering more than 1600 participants; participated in 8
The Quality Management Department takes the lead in organizing cross-departmental QCC (Quality Control Circle) external training exchanges.teams involving quality production and engineering personnel mobilizing the enthusiasm of all employees to drive
quality improvement. During the reporting period through quality improvement and supplier management process The Company formulates the quality policy and the Ten Codes of Conduct for Employees clearly defining the overall
optimization the Company promoted the identification correction and continuous improvement of non-conforming commitment and direction for quality management. Through the construction of quality culture display boards
items. Through initiatives such as building inspection capabilities and enhancing supplier capabilities it drove the featuring topics such as team quality morning meetings introductions to quality tools and showcasing employee
continuous improvement of key quality indicators. excellence it continuously enhances employees' quality awareness.
53 542025 Environmental Social and Governance (ESG) Report
Implementing Closed-Loop Quality Monitoring Management Opportunities
In 2025 the Company implemented a monitoring practice encompassing "preventive control + process Impact Period (Short-
Opportunity Name Opportunity Description and Potential Impact term/Medium-term/ Response Measures
control + ex-factory quality assurance": conducting DFMEA analysis during the design phase implementing Long-term)
supplier evaluation and coaching in the supply chain monitoring process stability through SPC/CMK during
Demand for The new energy battery industry's continuously Establish product standards
the assembly phase conducting FAT (Factory Acceptance Test) pre-acceptance and quality red/black flag Upgrading to High- increasing requirements for the precision and verification systems based
management during the delivery phase and carrying out customer complaint traceability and equipment Quality Automation and stability of automation equipment create Medium-term / on quality indicators; conduct
Equipment in New opportunities for high-quality equipment Long-term joint testing and quality
failure analysis during the after-sales phase. Energy Battery suppliers to secure premium projects and improvement cooperation with
Manufacturing cooperation. key customers.The Company's ability to provide integrated Promote delivery
Integrated Solutions
solutions for automated production lines standardization across
Strategy Bring Overall and precision laser processing equipment is Medium-term equipment and processes; Quality Competitive
expected to enhance the consistency of overall establish system-level quality
Advantage
delivery quality and customer satisfaction. control methods.Establish quality data collection
Analysis of Impacts Risks and Opportunities and Response Measures Enhanced Quality Improved equipment quality and on-site and problem feedback
Capabilities Boost stability help build a positive reputation Medium-term /
mechanisms; close the loop on
After-Sales and expanding opportunities for repeat purchases Long-term
after-sales issues back to product
Service Value retrofits and spare parts services.Risks design and manufacturing.Impact Period (Short- Management of Impacts Risks and Opportunities
Risk Name Risk Description and Potential Impact term/Medium-term/ Response Measures
Long-term) In accordance with the Control Procedure for Addressing Risks and Opportunities YIFI Laser has established
a management mechanism for identifying analyzing evaluating and responding to risks and opportunities
The Company's automated production lines and
Strengthen complete machine
Overall Delivery intelligent special machines are mostly delivered incorporating the entire product realization process into its risk management scope. All departments of the Company
ex-factory testing and phased
Quality Risk through the integration of mechanical electrical
on-site commissioning considering internal and external environmental factors systematically identify potential risks and opportunities
for Automated and control systems. Insufficient coordination Short-term
standards; establish delivery in production and management activities. They conduct analysis and assessment using methods such as SWOT
Production Lines during production and debugging may result in
verification checklists and
and Equipment equipment performance failing to meet customer analysis PESTLE analysis and FMEA analysis taking into account factors like frequency of occurrence risk level and
acceptance support systems.agreement requirements or delays in acceptance. degree of impact to determine whether countermeasures are necessary.Based on the assessment results the Company implements control through methods such as risk avoidance risk
Strengthen supplier
Automated production lines and precision evaluation and incoming reduction and risk acceptance. For risks requiring focused management it fills out the Key Risk Management Plan
Quality
laser equipment are highly dependent on material inspection systems;
Consistency Short-term / Form specifying measures responsible departments and completion deadlines. The effectiveness of these measures
high-precision components. Insufficient batch establish batch traceability
Risk for Critical Medium-term
consistency of critical components may affect the and alternative verification is evaluated before management reviews forming a continuous improvement mechanism.Components
overall stability and quality of the equipment. processes for critical
components. Metrics and Targets
Advance equipment reliability Key Performance
Customers have high requirements for long-term
On-Site design validation and
stable operation and sustained capacity output
Equipment Short-term / maintenance plans; improve
of equipment. Insufficient initial stability and During the reporting period:
Operation Stability Medium-term on-site customer support
maintenance support may increase the risk of
Risk and standardized operation/
downtime due to faults and after-sales costs.maintenance procedures. The Company's quality-related certification coverage rate for the non-standard industry: 100%
The certification rate among employees in the Company's Quality Management Department for certifications
such as Six Sigma Green Belt and Engineer exceeds 40% and the proportion of employees with practical
operational skills rated at Level B or above reaches 80%.
55 562025 Environmental Social and Governance (ESG) Report
Reliable Service Optimizing Experience Tiered Response to Customer Complaints and Closed-
Loop Improvement
YIFI Laser always takes customer needs as its orientation and attaches great importance to continuous
communication with customers and the improvement of service experience.Centered on the entire process of The Company has established procedures for receiving and handling customer complaints covering feedback related to
pre-sales in-sales and after-sales the Company has established standardized service procedures and response products and related services (including design manufacturing installation commissioning maintenance response speed
mechanisms striving to provide customers with stable reliable and timely support and assurance. etc.). Multiple complaint channels are set up including:
Management System and Division of Responsibilities
1. Customer Service Hotline: Established a customer service hotline 400-991-8650 maintained to ensure
customers can call at any time.YIFI Laser has formed a customer service management mechanism driven by systems and processes covering
2.Email: Published complaint email address market@yifilaser.com facilitating customer feedback via email.
customer demand identification process communication after-sales service complaint handling and satisfaction
measurement: All departments collaborate and coordinate to jointly ensure the stable operation of contract delivery 3. Suggestion Box: Suggestion boxes placed in prominent locations such as office areas and production
workshops to collect written customer complaints.and customer service.
4. On-Site Complaints: Feedback received during customer visits or at project sites.
The Company implements tiered management for complaints (crisis level major level important level general level) and sets
corresponding response requirements: For crisis-level complaints immediately activate the emergency response mechanism with
company leadership forming a dedicated handling team requiring response within 30 minutes prioritizing resource allocation for
emergency repairs aiming to restore equipment operation within 24 hours. Major-level complaints require response within 1 hour
prompt cause analysis prioritizing basic operation support within 24 hours and providing a solution within 24 hours. Important and
general-level complaints have response requirements of 2/4/8 hours respectively with timely replies via phone or email recording
opinions and forwarding for improvement.Regarding the closed loop of complaint handling the Company specifies: All relevant departments will promptly follow up on the
handling and maintain records for archiving. The Company has also established an improvement mechanism for monthly complaint
data aggregation high-frequency problem analysis optimization of equipment design or service processes and implementation of
experience-based training. The timeliness of complaint handling is incorporated into the KPI assessment of relevant departments.Received the "Best Service Award" Received the 2025 Ningfu New Energy Received the Great Power Value Co-
from Chery's Battery Division Partner Conference Outstanding creation Award
Quality Supplier Award Customer Satisfaction Acquisition Analysis and
Continuous Improvement
The Company has formulated the Control Procedure for Customer Satisfaction Measurement implementing systematic
measurement and improvement across the entire pre-sales in-sales and after-sales process: The Marketing Management
Center plans the evaluation content and survey methods prepares questionnaires and organizes the Marketing Center and
business divisions to conduct systematic analysis of the quarterly survey results forming the Analysis Report of Customer
Satisfaction Survey. Dissatisfactory items are classified and summarized improvement measures are proposed and responsible
departments are urged to implement rectifications. Business divisions cooperate in multi-directional customer communication
to encourage customer participation in improving the surveys.Satisfaction surveys are conducted for newly developed products within six months of market launch. Targeted surveys may be
organized for major quality issues customer complaints or special circumstances. The Marketing Management Center conducts
quarterly statistical analysis of raw scores focusing on items with the lowest average scores points of most dissatisfaction
mentioned in writing by customers and items showing a decline compared to previous periods. It organizes relevant
Received the Gotion High-Tech Partner 2025 Outstanding Contribution Award departments to take corrective and preventive actions driving continuous improvement in product and service quality.
57 582025 Environmental Social and Governance (ESG) Report
Data Security and Privacy Protection Network Security and Endpoint Security Control
We regard information security as a crucial foundation for ensuring the stability of company operations and the The Company proposes management requirements from aspects such as network operation security malicious code
security of information assets. Addressing the security requirements during information transmission exchange protection and vulnerability risk control:
and storage we focus on the confidentiality integrity and availability of information. We propose management
requirements from dimensions such as information processing system security information content security and
information dissemination security to mitigate risks like network environment fluctuations and information leakage. 01 02 03
During the reporting period no information security incidents occurred. In principle unauthorized Require timely handling Set retention and review
access to computer systems of virus risks and regular requirements for server
sensitive information or virus scanning promoting and system logs network
Participated in trade secret protection knowledge training. user data is prohibited. continuous updates of virus information logs etc. to
Standardized management databases and anti-virus support anomaly tracing
Participated in the "2025 Training for 100 of network structure device software. and investigation of unsafe
Enterprises to Enhance Trade Secret Protection configurations and key factors.Capabilities" organized by the Ezhou Municipal parameters is emphasized.Administration for Market Regulation further
enhancing the Company's awareness and
capability in trade secret protection thereby Employee Behavior Norms and Confidentiality Management
supporting the Company's healthy development.The Company sets clear requirements for employees' daily information security behavior covering scenarios such as
data security computer and media security operation and email security and personnel and environmental security.System Framework and Division of Responsibilities This includes restrictions on the dissemination storage and use of confidential information; setting boundaries
for activities like photography audio/video recording in office areas and external information transmission; and
emphasizing the requirements for protecting trade secrets and intellectual property standardizing employees'
The Company has established system documents such as the Information Security Management Policy and the Information confidentiality obligations and behavior guidelines in both work and non-work settings.Security Behavior Norms (Policies) and Implementation Details for Rewards and Punishments forming an information security
management framework of "system constraints + behavioral norms + reward and punishment mechanisms."
The Company specifies that relevant functional departments lead the education of employees on information security Physical Security and Server Room Management
awareness the formulation of behavioral norms systems and the reporting of information security violations. IT operations
are required to implement information security technical measures and daily maintenance. Concurrently it emphasizes that The Company sets requirements for the physical security of key areas and critical facilities emphasizing the maintenance and
employees should cooperate with inspections adhere to behavioral norms and proactively prevent potential violations. effectiveness of security facilities such as surveillance and access control and restricting unauthorized personnel from entering
relevant areas. It also standardizes server room operation order and equipment management requiring personnel to enter
Information Asset Protection and Access Control the server room according to regulations refrain from unauthorized equipment operation and maintain a clean server room
environment thereby reducing risks of physical intrusion and equipment issues.The Company implements classified and tiered management for confidential information defining the scope of
confidential information. It sets requirements for the storage borrowing transfer and destruction of confidential Violation Handling and Reward/Punishment Mechanism
information on confidential media (such as USB drives floppy disks optical disks) and computers. It also emphasizes
confidentiality agreements and responsibility constraints for personnel handling confidential data. To strengthen the execution of systems the Company has established mechanisms for investigating handling and
In terms of network and account permissions the company requires grouped management of network accounts improving information security violations forming graded and categorized punishment and reward arrangements:
and the establishment of a registration system specifying the standardization of elements such as the user's name measures such as verbal warnings written comments/warnings and financial penalties are taken for violations of
department password access permissions and opening time.It also emphasizes the safekeeping of confidential varying degrees; cases causing serious consequences or information leakage are dealt with strictly according to the
information like accounts and passwords and adherence to professional discipline requirements to prevent leakage system. Positive incentives are set for compliant behavior risk identification and reporting to foster employees' self-
of sensitive information. awareness in information security and continuous improvement.
59 602025 Environmental Social and Governance (ESG) Report
Industrial Chain Leadership and Synergy To enhance supplier information transparency and traceability management the Company uses the Supplier Basic Information Questionnaire to systematically collect basic supplier information (such as business nature
Enhancement operation mode distance to base existence of dishonesty or legal disputes etc.) and pays attention to their R&D/development capabilities quality management system establishment and related system categories. Concurrently
the questionnaire explicitly requires suppliers to provide relevant qualification documents. Suppliers must commit
that the information provided is true and valid serving as an important basis for the Company's initial qualification
We continuously improve our supply chain management system strengthen supply chain risk identification and full- review and subsequent audits.process control and ensure the stable supply of key materials and core components. Meanwhile we integrate compliance
management integrity requirements and the concept of sustainable development into the entire process of supplier Cooperation Process Management and Performance
access cooperation and evaluation and strive to build a stable efficient and responsible supply chain system.Evaluation Mechanism
During the cooperation stage the Company specifies quality requirements delivery cycles confidentiality
Key Performance
agreements and liability for breach of contract in contracts embedding risk management clauses to strengthen
the binding force and enforceability of the cooperation process. The Company has established a regular supplier
During the reporting period:
performance evaluation mechanism setting KPI indicators (such as on-time delivery rate quality pass rate problem
Number of suppliers with stable cooperation globally: Over 1000 response speed). It implements monthly and annual rating management for suppliers using the evaluation results
100% as an important basis for continuing or adjusting cooperation. For high-risk suppliers special audits are conducted to Percentage of suppliers who have signed the Supplier Code of Conduct:
examine their financial health production stability and compliance performance.Governance Structure and Division of Responsibilities
YIFI Laser has established a relatively clear organizational division for procurement and supply chain management: The Supply
Chain Center is comprised of the Supply Chain Management Department and the Purchasing Department. Within procurement
roles and teams such as the Outsourcing Group Subcontracting Group and Purchasing Group are further configured based on
business attributes to support procurement execution supplier collaboration and delivery assurance.Concurrently through organizational structure optimization and functional upgrading the Company emphasizes building
capabilities such as a supplier resource pool improving performance management and cost analysis to enhance the efficiency
agility and risk resistance of the supply chain system.Supplier Admission Due Diligence and Compliance
Verification
During the supplier admission stage YIFI Laser verifies supplier qualifications requiring documents such as business
licenses production permits quality management system certifications (e.g. ISO 9001) and environmental and
safety certifications (e.g. ISO 14001/ISO 45001) to ensure the legal and compliant foundation of potential partners.The Company simultaneously identifies potential risks through financial stability analysis judicial litigation record
checks and public opinion monitoring. Through on-site audits it conducts field evaluations of suppliers' production
facilities storage conditions and safety management systems to ensure they meet technical standards and safety
production requirements. Supplier Trainings
61 622025 Environmental Social and Governance (ESG) Report
Key Performance Supply Chain Risk Management and Critical Material
During the reporting period: Supply Assurance
Number of supplier training sessions: 6 Total supplier training hours: 1950 hours
YIFI Laser implements supplier management throughout the entire "admission - cooperation - exit" process. During
the exit stage the Company conducts historical risk event analysis for terminated suppliers summarizes risk
transmission patterns and archives cooperation records and risk cases to form an internal knowledge base providing
references for subsequent supplier selection and risk prevention.Integrity Compliance and Fair Procurement Regarding the stability of supply for scarce materials and critical components the Company adopts supply chain
optimization and diversification strategies: on one hand it establishes long-term partnerships with core suppliers
signs long-term agreements and maintains regular communication to secure priority supply of critical materials. On
Through the Supplier Integrity and Self-Discipline Commitment YIFI Laser sets clear requirements for supplier the other hand it introduces multiple suppliers to diversify risk building a supplier resource pool based on different
integrity and compliance: Suppliers commit to abide by national laws and regulations industry self-discipline types of equipment.provisions and the Company's relevant integrity management requirements. They shall not provide improper
benefits in any form to Company-related personnel or their associates and commit not to instigate or entice Equal Treatment of Small and Medium-Sized
employees to leave their positions or violate their job duties.Enterprises
The Company encourages suppliers to report improper conduct and provide evidence while requiring that reports
be based on facts and not maliciously fabricated. The commitment also imposes restrictions on fair competition YIFI Laser adheres to the principles of openness fairness and impartiality in procurement. It applies unified
requiring suppliers not to collude with other suppliers or exclude them from fair competition. In case of violation standards and standardized procedures in supplier admission evaluation and cooperation management without
the Company may suspend terminate or cancel the business relationship blacklist the supplier and permanently setting differentiated thresholds based on enterprise size or ownership form. The Company respects and safeguards
disqualify them as a supplier. the right of small and medium-sized enterprises to participate equally in market competition according to law. It
provides cooperation opportunities for SMEs with professional capabilities and technical advantages in areas such
as equipment manufacturing core component procurement and technical collaboration. Through standardized
contract management clear definition of rights and responsibilities and maintaining transparent communication
the Company continuously optimizes its cooperation mechanism with SMEs promoting the stable operation and
synergistic development of the supply chain achieving mutual benefit and win-win outcomes.
63 64202052 E5n Evnirvoirnomnmenetnatla lS Soocicaial la anndd G Goovveerrnnaannccee ( (ESG)) Report
03 Illuminating Nature Practicing Green Development
YIFI Laser integrates the concepts of green low-carbon and circular development into the entire process of its
business operations proactively assumes responsibility for ecological and environmental protection and actively
responds to the challenges posed by climate change. The Company continuously optimizes its energy structure
and resource utilization methods promotes the application of clean energy strengthens energy management and
pollution control efforts constantly reduces the environmental impact of its production operations and promotes
the enterprise's green transformation and sustainable development through pragmatic measures.
65 662025 Environmental Social and Governance (ESG) Report
Environmental Management Standardized Identification and Control of Environmental Factors
Procedures The Company systematically identifies environmental aspects that it can control or influence in its activities
products and services. Identification is carried out considering factors such as the use of raw and auxiliary materials
YIFI Laser strictly complies with environmental protection laws regulations and relevant standards. It has established pollutant emissions energy and resource consumption impact of equipment operation and activities of related
and improved an environmental management system formulating system documents such as the Quality parties. Evaluation is conducted comprehensively across normal abnormal and emergency conditions as well as
Environment Occupational Health and Safety Management Manual the Control Procedure for Identification and past present and future stages forming a list of significant environmental aspects.Evaluation of Environmental Factors and the Control Procedure for Obtaining and Identifying Laws Regulations and
Any situation that violates laws and regulations involves reasonable complaints from relevant parties or poses
Other Requirements. It has built an environmental management framework led by the General Manager clarifying
pollution risks without corresponding control measures may be directly identified as a significant environmental
the division of responsibilities and promoting the institutionalized and standardized operation of environmental
aspect and registered for management.Upon determination of significant environmental aspects the Administration
management.Department shall compile a list formulate environmental objectives targets and management plans and organize
Based on the management manual and related procedure documents the Company monitors and measures the key their implementation for control purposes.When there are changes in the company's activities or applicable laws and
characteristics of identified operational activities with significant environmental impacts and supervises and inspects regulations supplementary identification and re-evaluation shall be carried out in a timely manner.the completion of environmental target indicators and management plans supporting the continuous improvement
of environmental performance. Compliance Management and Daily Supervision
The Company conducts annual compliance evaluations of the implementation status of "environmental occupational
health and safety laws regulations and other requirements" and updates the management list according to procedures
to ensure environmental management complies with legal and regulatory requirements.The Administration Department organizes daily environmental supervision and inspection promptly correcting general
non-conformities recording issues that cannot be immediately rectified and implementing corrective measures
ensuring the effective implementation of environmental management measures.Environmental Management System Certification
Key Performance
During the reporting period:
No environmental accidents occurred.
67 682025 Environmental Social and Governance (ESG) Report
Pollution Prevention and Emission Control General Solid Waste Management
In accordance with the Wastewater and Exhaust Gas Control Procedure the Waste Management Control Procedure and The Company implements classified management based on waste nature
the Noise Control Procedure YIFI Laser has established an environmental management system covering wastewater distinguishing categories such as recyclable waste and general waste. Various
exhaust gas solid waste and noise. It clearly defines the division of responsibilities and process control requirements departments set up classified waste bins in office areas and factory premises
thereby continuously reducing the environmental impact of its production and service activities through classified implementing classified disposal and collection. General waste is uniformly
management standardized disposal and supervision and inspection. collected and disposed of while recyclables are handed over to recycling
departments.Wastewater Management Regarding division of responsibilities the Administration Department is responsible
for the surrounding environment and waste bin management the management
The Company implements unified management of wastewater generated from domestic office and production and disposal of production-generated waste and supervising and inspecting
service activities. Domestic sewage and flushing water are directly discharged into the municipal sewage pipeline the waste management status of various departments. Each department is
network. Wastewater from cleaning activities in various departments is uniformly collected before being discharged into responsible for the daily management of waste within its own work area.municipal pipelines; indiscriminate dumping is prohibited. The Administration Department is responsible for regularly
cleaning of sewer inlets and for inspecting and maintaining facilities and equipment such as drainage system pipes Hazardous Waste Management
valves pumps tanks and manholes. Non-conformities found are rectified according to procedures and follow-up
verification is conducted.Based on the Company's actual production and operation conditions the main production processes consist of
the assembly and commissioning of machinery equipment and related modules. . During the reporting period
Exhaust Gas Management industrial waste mainly consisted of general industrial solid waste such as waste packaging materials scrap metal
and paper. It does not involve the treatment of hazardous waste or the generation of hazardous waste.Since the Company's main production processes involve the assembly and commissioning of machinery equipment
and related modules almost no exhaust gas pollutants are generated during production. The primary considerations Noise Management
are kitchen fumes from the canteen and road dust. The Company conducts daily inspection and maintenance of gas and
exhaust gas emission facilities. The Administration Department performs regular checks and maintenance on exhaust gas
flues and ventilation facilities promptly repairing any malfunctions. When refrigerant replacement is involved equipment In accordance with the Noise Control Procedure the Company controls noise generated by equipment operation during
manufacturers are entrusted to operate according to procedures to reduce the risk of volatilization and leakage. production and service activities ensuring noise levels comply with environmental laws and regulations. The Administration
Department is responsible for organizing implementation and supervising inspection. Various departments are responsible for
Regarding dust the Company reduces dust through measures such as road watering for dust suppression and enclosed noise management within their respective areas.cement storage. It sets normative requirements for the storage and use of oil products volatile chemicals and organic For noise from equipment operation such as pumps fans air compressors and drilling machines the Company implements
solvents to prevent the volatilization of harmful gases. Company vehicles use unleaded gasoline and undergo annual exhaust control through measures like cutting off noise sources sound insulation sound absorption and limiting operation time.emission tests. Concurrently exhaust gas and dust management requirements are communicated to construction and Regular maintenance is carried out according to equipment maintenance plans with silencing devices installed when necessary.related parties and supervision and inspection are carried out. Maintenance operations with high noise levels are conducted in enclosed spaces as much as possible. When modifying or
replacing equipment low-noise equipment is prioritized. The Company concurrently communicates noise management
requirements to construction and related parties and conducts supervision and inspection.Key Performance
During the reporting period:
Total general waste: 7.19 tons including
Waste cardboard 5.17 tons waste books 0.49 tons scrap wire 0.56 tons alloy paper 0.40 tons scrap material
0.26 tons waste batteries 0.31 tons
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Climate Governance Anchoring Dual Carbon Goals Impact Period (Short- Financial Risk Name Risk Description and Potential Impact term/Medium-term/ Response Measures
Impact
Long-term)
We integrate climate change issues into our overall development strategy system. By promoting energy structure Increased Strengthen communication
Risk of Changes in Customers are paying more attention
optimization strengthening energy conservation and emission reduction measures and deepening the R&D and difficulty with customers; optimize Green Procurement to green manufacturing and carbon
in order product design and
application of green technologies we continuously reduce the environmental impact of our business activities and Customer management. Insufficient response Medium-term acquisition; energy efficiency; enhance
constantly enhance our ability to respond to climate-related risks and actively seize the development opportunities Requirements by the Company may affect its market increased information disclosure
(Transition - Market) competitiveness.brought by the low-carbon transition. retrofit costs. transparency.Climate Information If climate-related disclosures are Brand image
Improve climate information
Governance Disclosure and insufficient or response measures are affected; disclosure mechanisms; Reputation Risk inadequate it may adversely affect the Medium-term increased
strengthen communication
(Transition - Company's corporate reputation and communication
with investors and customers.YIFI Laser embeds its climate governance system within the overall ESG governance framework further clarifying Reputation) investor confidence. costs.the division of responsibilities between the Board of Directors and management in climate matters. It promotes
the deployment and implementation of related work from the top down continuously improving the Company's
Opportunities
management capabilities and response level in the field of climate change.Strategy Impact Period (Short-
Opportunity Description and Financial
Opportunity Name term/Medium-term/ Response Measures
Potential Impact Impact
Long-term)
Analysis of Impacts Risks and Opportunities and Response Measures Energy-Saving Conducting energy-saving optimization Increase R&D in energy-saving
Enhance
Technology and technology upgrades for automated technologies; optimize product
product added
Innovation production lines and precision laser Medium-term energy efficiency indicators;
Risks value and Enhances Product equipment helps improve product strengthen the transformation of
revenue.Competitiveness efficiency and market recognition. technological achievements.Impact Period (Short- By optimizing manufacturing processes Decrease in
Financial
Risk Name Risk Description and Potential Impact term/Medium-term/ Response Measures Production Process and energy management improve operating Promote lean production; improve
Impact
Long-term) Optimization Reduces resource utilization efficiency and Medium-term costs; energy statistics and management
Operating Costs reduce energy consumption per unit of improvement mechanisms.Develop emergency plans
Extreme weather such as heavy rain high Increased output value. in profitability.Risk of Production and conduct regular drills;
temperatures and typhoons may affect emergency
and Delivery strengthen plant safety and Improving energy efficiency and Stabilize
the operation of production sites power maintenance Energy Structure Formulate energy optimization
Disruption Due to Short-term equipment maintenance gradually optimizing the energy mix energy costs;
supply and logistics transportation and Optimization Reduces Long-term plans; promote the application of
Extreme Weather management; improve helps mitigate the risk of future energy reduce carbon
leading to delays in production plans or management Long-Term Risks efficient equipment.(Physical - Acute) supply chain and logistics price fluctuations. cost risk.fluctuations in project delivery schedules. costs.coordination mechanisms. The growing demand for new energy Expanded
Risk of Increased Strengthen energy Green Market Strengthen market development;
Long-term climate change may lead to and green manufacturing is conducive to revenue scale;
Energy Consumption Increased management; optimize Demand Brings Medium-term/Long- enhance overall solution
increased high-temperature operating the Company's automation equipment enhanced
and Maintenance Medium-term/Long- energy and production scheduling and Business Expansion term capabilities; strengthen customer
loads and higher energy consumption and intelligent manufacturing solutions market
Costs Due to Climate term maintenance equipment maintenance; Opportunities collaboration.raising production and equipment expanding market space. position.Change (Physical - costs. promote the application of
maintenance costs.Chronic) energy-saving technologies.Increased
Regulatory requirements for "dual carbon" compliance Continuously track Management of Impacts Risks and Opportunities
Risk of Increased and energy conservation/emission management policy changes; improve
Policy and reduction are continuously strengthening. costs; environmental and energy
Medium-term
Compliance Pressure The Company faces higher compliance additional management systems;
(Transition - Policy) standards in areas such as energy use and environmental strengthen internal training YIFI Laser has built a systematic risk and opportunity management process around climate change:
environmental management. protection and compliance reviews.investments.To adapt to low-carbon development
Reasonably plan the pace
Uncertainty Risk trends the Company needs to optimize Increased R&D 01
of technology upgrades;
of Technology product energy efficiency and technical expenses;
strengthen R&D evaluation Risk Inventory and Identification: The Company sorts out climate-related risk and opportunity categories
Upgrade Investment solutions. If the pace of technology Medium-term increased
mechanisms; improve the
(Transition - investment does not match the market technology establishes identification and response methods and in principle conducts risk and opportunity identification at
synergy efficiency between
Technology) rhythm it may increase investment validation costs.R&D and marketing. least once a year forming a list of climate risks and opportunities.uncertainty.
71 722025 Environmental Social and Governance (ESG) Report
02 Energy Management Efficient Utilization
Impact Assessment of Risks and Opportunities: Based on identification the Company conducts quantitative
Centered on the goals of resource conservation and green operations we integrate energy saving consumption
and qualitative analysis of related risks and opportunities considering factors such as frequency of occurrence
reduction and recycling requirements into the entire process of daily operation management. We continuously
and risk level. It assesses their potential impact on the Company's business activities and financial status and
optimize resource allocation across multiple aspects from energy use and water resource management to the
determines whether corresponding management measures are needed.recycling of office consumables and packaging materials promoting the formation of a resource-efficient and circular
operation model and continuously improving resource utilization efficiency and green management levels.
03 Energy Management
Response Measures for Risks and Opportunities: Based on the assessment results the Company improves
Following the principle of "expanding sources and reducing expenditures giving equal importance to development
climate risk response strategies fills out the Key Risk Management Plan Form continuously tracks the progress
and conservation with priority given to energy conservation" the Company strictly adheres to the requirements of
of risk management and control regularly evaluates the implementation effectiveness of response measures
laws and regulations such as the Energy Law of the People's Republic of China and the Energy Conservation Law of
and promotes the continuous optimization of risk management.the People's Republic of China during energy management. It strives to ensure project production and normal living
needs with minimum energy consumption actively adopts energy conservation and emission reduction measures
promotes the use of clean energy and continuously improves energy utilization efficiency.Enhance employees' awareness of climate action During the reporting period the Company's main types of energy use included water electricity and natural gas; the
type of clean energy used included photovoltaic power.The Company continuously raises employees' awareness
of climate action actively conducting and participating
in various training and promotional activities. During the Energy Conservation Management Measures
reporting period it participated in the "2025 Phase 2 Green
Trade Special Training" organized and implemented by the 01
Trade Development Bureau of the Ministry of Commerce
and the Hubei Provincial Department of Commerce and co- Promote technological transformation of electrical equipment gradually phasing out and upgrading processes
organized by the Hubei Carbon Emission Trading Center and and equipment with high power consumption.China Carbon Registry as well as the "Dual Control of Carbon
Emissions" training and exchange meeting held by the Gedian Participating in the "Dual Control of Carbon 02
Economic Development Zone. Emissions" training and exchange meeting.Turn on on-site electrical equipment when needed to prevent idle operation.
03
Metrics and Targets Submit energy-saving measures for approval according to regulations before commencing new construction/
renovation/expansion projects.Key Performance
04
During the reporting period: Reasonably configure the number and power of lighting fixtures eliminate lights left on unnecessarily and
Total GHG emissions (Scope 1): 61.17 tCO e ensure lights are turned off when people leave.2
Total GHG emissions (Scope 2): 1228.22 tCO2e
05
Total GHG emissions (Scope 1+2): 1289.39 tCO2e
Install separate meters for office and production areas to measure and record electricity consumption for
GHG emissions intensity: 0.016 tCO2e/RMB 10000 of revenue statistical analytical and control purposes.
73 742025 Environmental Social and Governance (ESG) Report
Clean Energy Usage Water Conservation Measures
YIFI Laser actively promotes the application of clean energy by constructing photovoltaic power generation facilities Install meters as much Emphasize water
on factory rooftops converting solar energy into electricity needed for production and operation and enhancing the Gradually adopt as possible based on Install water-saving conservation for
sprinkler or drip
green level of its energy structure. In addition to meeting its own electricity needs the Company also feeds surplus actual water usage to valves or faucets vehicle washing irrigation for
electricity into the public grid effectively reducing its dependence on traditional energy sources. The Company will measure and record for production and prohibiting direct landscaping water use
continue to deepen the construction of its photovoltaic system and explore supporting energy storage solutions to water consumption; cleaning water connection to tap and prevent leaks and
set up water facilities. water for hose
build a synergistic "generation - storage - consumption" operation mechanism. This will ensure the stability of energy drips.conservation signs. washing.supply during extreme weather or peak electricity consumption periods further enhancing the self-sufficiency rate
of clean energy and overall energy utilization efficiency. The Company has a total of 2 distributed PV projects with
a combined installed capacity of 1258.48 KW. During the reporting period the Company's self-consumption of PV
electricity amounted to 115.04MWh accounting for 66.39% of the total PV electricity generated which is equivalent to Key Performance
reducing 46.48 tons of CO2 equivalent emissions.During the reporting period:
Total water consumption: 39481 tons
Green Operations and Resource Recycling致力激光创新拓展笃行装备智能升级
LASER INNOVATION & EQUIPMENT INTELLIGENTIZATION办公环境绿色升级倡议行动
亲爱的逸飞小伙伴：
为了营造一个更加清洁、舒适、高效的办公环境，同时积极响应节能减排的社会号召，我们特向大家发出以下倡议：
1.办公区域禁止餐食
1.1禁止内容：在办公区域内严禁就餐，包括外卖和自带饭食，以保持办公区域整
洁与卫生，避免虫鼠隐患。
1.2推荐地点：外卖及自带餐食请至紫薇餐厅享用，有利于个人健康及办公环境卫生。
2.垃圾分类投放
2.1分类要求：注意垃圾分类，将日常生活垃圾投放至办公楼层垃圾桶内。
2.2特殊处理：纸箱纸皮、一次性饭盒等可回收或特殊处理的垃圾，请移步至楼宇
指定的集中投放点（如行政楼-紫荆餐厅门前或车间-茶水间区域）。
2.3循环利用：通过垃圾分类促进资源的循环利用。
3.合理使用空调
3.1温度设定：空调温度设定在适宜的范围内：夏季不低于26℃，冬季18℃到22℃之间。
3.2提高能效：使用时关闭门窗，以减少冷气外泄，提高空调的使用效率。
3.3节约用电：最后离开办公区域的员工，请务必检查空调电源是否关闭，确保没
有不必要的能源浪费。公司将定期对空调使用情况进行检查和统计。
4.关闭非必要电源
4.1节能措施：随手关闭照明、电脑等非必要电源。每日晚上20点后，物业安保对
办公区域进行巡查，关闭公共区域及卫生间灯光，加班人员按需自行开关灯光。
4.2设备检查：离开座位或下班前，检查并关闭所有不必要的电器设备，如电脑、打印机、显示器等。
4.3延长寿命：减少电能消耗的同时，延长设备使用寿命。
5.吸烟区管理规定
5.1禁烟区域：办公楼及厂房区域除指定吸烟区外，其它场所严禁吸烟。
5.2安全卫生：烟头熄灭后集中丢放在烟灰桶内，不得随地吐痰、乱扔烟头及乱弹
Key Performance 烟灰。 6. 监督与公示
6.1稽核方式：现场不定期组织人员抽查、监控抽调等。
6.2 公示方式：纳入5S行政稽核管理，计入5S月度评分汇总统计。
让我们携手行动起来，从我做起，从现在做起，为创造一个更加绿色、健康、高效的办公环境而努力！
祝工作愉快，生活美满！
During the reporting period: 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 [1 /1 ]
Total PV power generation: 173.29 MWh Self-consumed PV electricity: 115.04 MWh New Cohesion actively advocates for green office practices. The Company released the Initiative for Green
Office Environment Upgrade.Office Consumables and Material Conservation Measures
Water Resource Management
·Save paper and recycle waste paper gradually promoting a paperless office.· Implement planned usage and quota-based material requisition for engineering materials based on
The water used for the Company's production and office activities is sourced entirely from the municipal water supply
budget; adopt advanced technologies to reduce raw material consumption.system. We attach great importance to the rational utilization and sustainable management of water resources
strictly follow the requirements of relevant laws and regulations such as the Water Law of the People's Republic of ·E xchange old maintenance tools for new ones; recycle and process recyclable parts as much as possible.China and the Law of the People's Republic of China on the Prevention and Control of Water Pollution scientifically · Strengthen motor vehicle maintenance and management to save fuel consumption and improve
formulate water usage plans and continuously strengthen the control of water resource usage. operational efficiency.
75 762025 Environmental Social and Governance (ESG) Report
Packaging Material Management Harmonious Coexistence Protecting Ecology
The Company integrates the concept of circular economy into its product lifecycle management process continuously
promoting raw material conservation and packaging reduction measures. Packaging materials generated from YIFI Laser places great emphasis on ecological and environmental protection. It strictly complies with the
incoming materials and purchased equipment are uniformly dismantled sorted collected and recycled/reused. Environmental Protection Law of the People's Republic of China and the laws regulations and ecological protection
Turnover materials such as pallets shelf material boxes and turnover boxes are managed for reuse reducing the use red-line management requirements concerning biodiversity protection in its operating locations. During site selection
of disposable consumables further improving resource utilization efficiency and reducing resource consumption. and business layout it fully considers ecological and environmental factors avoids construction or business activities
in biodiversity-sensitive areas and minimizes the potential impact on surrounding ecosystems.During project construction and office operations the Company focuses on implementing eco-friendly concepts. It
improves the regional ecological environment by promoting park greening construction rationally configuring green
spaces and prioritizing the planting of native suitable plants thereby enhancing the ecological function of green
spaces and maintaining the ecological balance of the park. The Company continuously monitors the potential impact
of its operational activities on the ecosystem advocates for green office and low-carbon behaviors guides employees
to enhance their awareness of ecological protection and strives to achieve harmony and unity between enterprise
development and ecological environmental protection.Secondary Utilization of Purchased Large-Scale Reuse of material turnover boxes
Packaging Materials Factory Greening
Key Performance Key Performance
During the reporting period As of the end of the reporting period:
Quantity of packaging materials recycled: 228 units Green coverage area reached: 6785 m2 (YIFI Intelligent Central China Intelligent Manufacturing Base)
77 78202052 E5n Evnirvoirnomnmenetnatla lS Soocicaial la anndd G Goovveerrnnaannccee ( (ESG)) Report
04 Illuminating Hearts Building a Harmonious Ecosystem Together
YIFI Laser is committed to building a diverse equitable and inclusive workplace where every employee can not only
be a creator of corporate value but also achieve personal growth and well-being. Through a comprehensive talent
development system and all-around employee care we continuously stimulate the team's potential integrating
employees' personal aspirations into the Company's green vision and the long-term progress of society.
79 802025 Environmental Social and Governance (ESG) Report
Compliant Employment Caring for Employees 60 25178 449 1128
Number of Employees with
Master's Degree or Above
YIFI Laser has established a human resources governance structure that aligns with the Company's strategic control model. Number of Employees with Number of Han
Strategic coordination and policy formulation are conducted at the headquarters level while subsidiaries and business Education Bachelor's Degree Ethnicity Ethnicity Employees
Structure Structure
units execute efficiently. This ensures close alignment between HR strategies and business needs supporting the scaled Number of Employees with Number of Ethnic
College Diploma Minority Employees
development that brought the total number of employees to 1153 a year-on-year increase of 15.3%.Number of Employees with
466 Education Below College Diploma
Compliant Employment
YIFI Laser consistently adheres to the principles of legal and compliant employment strictly abides by national laws and
regulations such as the Labor Law and the Labor Contract Law and has formulated and implemented the Employee Compensation Benefits and Incentive System
Handbook which covers key aspects including recruitment hiring labor contract management attendance systems and
holiday arrangements.The Company has established a multi-tiered compensation and incentive system covering monthly annual and long-term
In the process of employee recruitment the Company adheres to the principles of comprehensive assessment merit- components. Amidst rapid business development it formulates a scientific compensation management system based
based selection appointment based on competence and prioritizing internal candidates before external recruitment. It on local and industry salary levels employee job levels positions and performance appraisals. Through compensation
strictly prohibits the employment of child labor or underage workers as well as any form of forced labor. The Company and benefit policies like equity incentives and performance bonuses it maximizes employee motivation stimulates their
adopts diverse employment forms including full-time employees outsourced employees and hourly workers. Among work enthusiasm and creativity significantly optimizes the input-output ratio and reflects the internal equity and external
them non-full-time employees are uniformly dispatched by third-party labor service companies which are also incentivizing nature of the compensation system.responsible for salary and insurance payments ensuring compliant implementation of relevant rights and interests and
To ensure the fairness and credibility of performance assessments we have established a calibration mechanism for
providing institutional guarantees for employment practices. The Company strictly follows the principles of fairness and
evaluations and formal grievance procedures guaranteeing that results are horizontally fair and vertically consistent
impartiality in recruitment and employment attracting talent through diversified recruitment channels (online platforms
within the organization. Employees can provide feedback and lodge grievances regarding their performance results
offline events campus recruitment internal referrals etc.) to ensure equal opportunities. We explicitly prohibit any form of
through formal channels reinforcing the openness transparency and results orientation of performance communication.discrimination and no confirmed incidents of discrimination occurred in 2025.Performance results are not only utilized for incentive distribution but also serve as a crucial basis for talent identification
training planning and career development management thereby constructing an integrated performance application
Key Performance system that combines "evaluation development and utilization."
During the reporting period in terms of compliant recruitment the Company: We contribute to basic pension medical unemployment and work-related injury insurances for all employees in
accordance with the law achieving 100% social insurance coverage. In addition to statutory benefits we have established
Number of employees: 1153 persons multiple corporate benefits such as communication allowances perfect attendance bonuses and night shift subsidies. We
continuously improve and enhance various employee benefits to effectively boost their sense of gain.The labor contract signing rate for all employees was 100% with 100% compliance for new hires and 100%
social insurance coverage
Monthly Compensation Annual Incentives Special Awards Long-term Incentives
19 Comprises base Includes Project incentives The company has
170 983 120 509 salary performance performance-based established for completed one round
pay position year-end bonus patent applications of equity incentives
Under 30 allowance welfare centrally calculated management (employee stock
Total subsidies attendance by the company improvement ownership + strategic
Number of Male Employees Age 31-40 pay etc. as a bonus pool 5S excellence placement)
Employees
Female Employees Structure 41-50 with secondary recognition
1153 distribution by technology R&D etc.
51 and above departments
505
81 822025 Environmental Social and Governance (ESG) Report
Employee Care
Employees are the core driving force of the company's development. Respecting caring for and empowering
employees is a crucial cornerstone of the company's sustainable development. The company consistently adheres
to a people-oriented management philosophy integrating humanistic care into every aspect of daily management
across multiple dimensions including the work environment living security hardship assistance communication
channels employee relations and physical and mental health. It is committed to creating a safe harmonious warm
and engaging workplace atmosphere for all employees effectively protecting employee rights enhancing employee
well-being and cohesion and achieving mutual growth for employees and the company.Pay social insurance and housing provident fund for employees in accordance with national Women's Day benefits for female employees. 2025 Spring Festival Annual PartyStatutory
regulations and provide annual leave marriage leave maternity leave paternity leave
Guarantees bereavement leave etc.Allowances
Transportation subsidy meal subsidy communication subsidy seniority subsidy perfect
and
attendance bonus holiday benefits project subsidy etc.Subsidies
Health
Arrange an annual physical examination for employees and regularly conduct health lectures.Support
Culture Organize team building activities travel basketball/badminton club activities etc.; provide Ecosion Badminton Competition Movie Event for Headquarters Topping-Out Ceremony
humanistic care such as employee birthday wishes customized birthday meals and holiday
Building gifts.Special Establish a talent subsidy system provide employee dormitories and free shuttle bus services
and offer benefits for employees' family members such as discounted health checkups and
Benefits recommendations for children's educational resources.Hardship Establish a hardship assistance fund to provide a certain amount of financial aid to employees
whose families are experiencing economic difficulties due to major illnesses accidents or other
Assistance reasons.Employee Activities
The Company places high importance on employees' spiritual and cultural needs regularly organizing various
cultural sports and festive care activities. These activities break down departmental barriers and enhance
communication and collaboration among employees. Through diverse activity formats they not only alleviate Living Security
employees' work pressure and enrich their spiritual and cultural life but also further strengthen team cohesion and
unity.The Company consistently prioritizes employee food safety and convenience striving to build employee canteens
The Company has specifically planned and built comprehensive sports and recreation venues equipped with with high safety standards. A dual-layout of a main canteen and a smaller canteen is in place to meet the diverse
facilities such as table tennis rooms basketball courts and billiards rooms providing employees with convenient dining needs of employees. The canteens offer a variety of dining options including buffets small-dish meals and
fitness and entertainment spaces. Employees can participate in various sports and cultural activities in their spare set meals. Strict control is exercised over all processes including ingredient procurement processing and sample
time which not only enhances physical fitness and relieves work fatigue but also fosters mutual relationships through retention upholding the bottom line of food safety while ensuring nutritional balance and flavor diversity. This
interaction creating a positive healthy and energetic workplace atmosphere. effectively addresses employees' concerns about dining allowing them to eat with peace of mind and satisfaction.
83 842025 Environmental Social and Governance (ESG) Report
Safety Production Health Protection
YIFI Laser consistently adheres to the management principle of "Safety First Prevention-oriented and Comprehensive
Management". It has established a comprehensive well-structured and rigorously enforced safety production
and occupational health management system. Committed to building a safe and healthy working environment
it prevents accidents and occupational diseases through systematic management and continuous improvement
safeguarding the safety and health of all employees and relevant parties entering the Company's premises. The
Company's commitments and actions permeate every aspect of governance strategy risk management and daily
operations. All work strictly follows national laws and regulations such as the Law of the People's Republic of China
on Work Safety and the Regulation on Emergency Responses to Work Safety Accidents .Key Performance
During the reporting period
Work safety investment: RMB 189600
Governance
Democratic Management The Company has formulated the Employee Health and Safety Control Procedure and established an employee
health and safety management structure centered on a two-tier management responsibility system. This structure
Upholding the management philosophy of "digitalization refinement and humanization" the Company comprehensively clarifies the chain of responsibility from the highest decision-making level down to the execution level. Through an
safeguards the legitimate rights and interests of employees through recruitment systems training systems and other employee representative mechanism it ensures the right to information and participation of frontline employees in
means. In 2025 YIFI Intelligent formally established a labor union providing organizational support for democratic occupational health and safety matters.management and communication among employees. We have set up employee suggestion boxes to encourage
employees to express opinions and suggestions at any time. A General Manager's mailbox has been activated providing
Governance Role Main Responsibilities
an exclusive communication channel for employees to reach the Company's top management directly ensuring that
key demands receive high-level attention and timely response. Regular employee symposiums are organized where As the primary responsible person for employee health the General Manager provides overall leadership
management and employee representatives communicate face-to-face listen to frontline voices answer questions on the General Manager for the Company's employee health management work.spot and collect reasonable suggestions. Four employee satisfaction surveys were conducted.Heads of departments are accountable to the General Manager and are responsible for implementing all
Heads of
employee health management tasks within their departments including safety and health training for
The company has established a complete appeal Departments new and transferred employees and the establishment of employee health records.mechanism for disciplinary actions. If an employee
The Enterprise Management Center is responsible for formulating and organizing the implementation of
has objections to the disciplinary action received the Company's Employee Health and Safety Control Procedure while also supervising and inspecting the
he/she may submit an appeal in writing to the Enterprise implementation status of various departments. It conducts an annual evaluation of the comprehensive
Management Center
Enterprise Management Center or the general employee health management status of each department. The results serve as important input for
manager within 5 working days from the date of the management reviews driving the continuous improvement of the management system.disciplinary decision ensuring the fairness openness Employee Participate in the formulation and review of policies and objectives hazard identification and risk
and transparency of the handling process. The exit Representatives assessment; reflect frontline health and safety demands; and communicate relevant information.interview mechanism is jointly implemented by the
employing department and the Human Resources The Company has formulated the Control Procedure for Environmental Occupational Health and Safety Monitoring and
Department to understand employees' true thoughts Measurement clarifying the division of responsibilities for monitoring and measurement work. The Administration Department is
Employee Suggestion Box Administrative Service
and their opinions on the Company and positions Satisfaction and Suggestion the main control department for this procedure responsible for supervising the Company's environmental and occupational health
promoting management improvement. Survey Questionnaire and safety objectives targets and their completion status evaluating compliance with relevant laws and regulations and reporting to
85 862025 Environmental Social and Governance (ESG) Report
the Management Representative. The safety and environmental personnel in the Administration Analysis of Impacts Risks and Opportunities and Response Measures
Department are responsible for daily environmental occupational health and safety inspections
recording tracking and verifying any non-conformities found. Each department is responsible
Risks
for supervising its own environmental occupational health and safety operations and recording
inspection results.Impact Period (Short-
The Company has established and implemented an occupational health and safety management Risk Description and Potential Risk Name term/Medium-term/ Response Measures
Impact
system in accordance with GB/T 45001-2020 / ISO 45001:2018 standards and has obtained Long-term)
certification. This signifies that the Company's occupational health and safety management level is
Occupational Health and Various operational safety · Strictly implement various operational safety
aligned with international standards laying a solid foundation for the continuous improvement of Safety Management System risks during the production accident emergency plans strengthen pre-job
safety management performance. Certification process including training and the provision of personal protective
mechanical injury electric equipment and continuously identify hazards
Operational Safety
shock crane injury burns Short-term through daily safety inspections.Strategy Risks and object strikes may lead · Introduce intelligent inspection systems to
to casualties equipment monitor the operating status of key equipment
damage and production in real-time and provide early warnings of
The Company has formulated a comprehensive system of occupational health and safety production management interruptions. abnormalities.systems serving as the guideline for all safety activities. This includes a series of core documents such as the Employee · Strictly implement the Company's contractor
Weak safety awareness
Health and Safety Control Procedure the Contractor Management System the Work Safety Management System the admission review safety agreement signing illegal operations and
Hazardous Materials Management System and the Control Procedure for Environmental Occupational Health and Safety entry training on-site supervision and violation insufficient qualifications
Contractor penalty mechanisms.Monitoring and Measurement. They cover all key aspects from employee health monitoring and contractor management of contractors may lead Short-termManagement Risk · E stablish contractor safety performance
to accidents and the
to special operation permits hazardous materials management emergency response and performance monitoring. files linking safety performance with future definition of responsibilities
cooperation opportunities and implementing a
is complex.survival-of-the-fittest approach.Key Performance · Continuously improve the three-tier emergency
plan system regularly organize multi-scenario
When emergencies occur
During the reporting period emergency drills ensure sufficient emergency Risk of Insufficient slow response insufficient
supplies and update internal and external
Emergency resources or inapplicable
52 Short-term communication mechanisms. personnel including safety officers special equipment administrators forklift operators fire facility Response plans may lead to the · E stablish an emergency command center
Capability escalation of accidents
equipped with an emergency communication operators crane Q2 certificate holders high/low voltage electricians and occupational health administrators causing greater losses. system to achieve unified cross-departmental
dispatch.completed certificate renewal; 2 X-ray flaw detection operators from the Research Institute obtained qualification
certificates. Opportunities
Impact Period (Short-
We strictly implement the Occupational Disease Prevention and Control Management Measures . Each department Opportunity Description and Opportunity Name term/Medium-term/ Response Measures
Potential Impact
prepares the Company's employee physical examination plan before the end of each year regularly organizes Long-term)
corresponding occupational health examinations for employees and follows the Provisions on Health Care for Female Introducing automation
Employees issued by the National Health Commission caring for the health of female employees. Concurrently we pay · Continuously promote the R&D of automated equipment and intelligent
production lines using existing monitoring
attention to employees' mental health relying on the labor union platform and introducing third-party professional Opportunities monitoring technologies can data to support technological
for Technology- reduce personnel exposure
resources to provide psychological support services. We regularly conduct health lectures emotional management and Medium-term · E xplore applications of technologies such Driven Safety to hazardous environments
as robots replacing high-risk operations and
stress-relief activities comprehensively promoting the physical and mental health development of employees. Upgrades lower the probability of wearable devices for real-time monitoring of
accidents and enhance
personnel status.intrinsic safety levels.Key Performance
Through systematic safety
· Conduct annual statistical analysis of safety
inspections and data
inspection results and submit them for
During the reporting period: analysis accident trends Opportunities management review providing a basis for
can be identified and the
for Data-Driven Long-term management decision-making.accumulation of hazards
Occupational disease incidence rate: 0 Coverage rate of occupational health examinations: 100% Coverage rate Improvement · E stablish a safety performance data platform can be prevented achieving
to achieve digital closed-loop management of
continuous management
of employee health check-up: 100% hazards accidents and rectifications.improvement.
87 882025 Environmental Social and Governance (ESG) Report
Occupational Health and Safety Production Emergency Plans The Company organized a radiation accident emergency drill.On September 12 2025 the Company's Research Institute conducted a radiation
The Company has established a comprehensive emergency accident emergency drill. Through radiation safety knowledge promotion and
management system and emergency plans equipped with ample simulated emergency response drills relevant personnel became familiar with the
emergency supplies and clear internal and external communication procedures of the radiation accident emergency plan mastered the use of radiation
mechanisms. Through regular drills it continuously tests the monitors and protective equipment and learned key skills such as personnel
operability of the plans ensuring rapid response and effective evacuation and casualty treatment. This enhanced the Institute's rapid response
handling of emergencies to minimize accident losses. coordinated operations and on-site handling capabilities for sudden radiation
accidents minimizing the impact of accidents on people the environment and society.YIFI Intelligent has formulated the Emergency Plan for Production
Safety Accidents. It regularly conducts comprehensive hazard and
harmful factor identification for plant layout process equipment Jiangsu YIFI conducted a fire emergency drill.and utilities identifying major accident categories such as
mechanical injury fire and explosion electric shock and crane In July 2025 Jiangsu YIFI organized a company-wide fire drill. The drill
injury and designating high-risk areas as key prevention targets. simulated a fire scene conducting emergency evacuation CPR training and
Concurrently it uses the LEC method for quantitative grading of practical fire extinguishing exercises. Through the drill employees mastered
hazards determining the emergency response level based on risk the use of fire-fighting equipment and escape skills verified the effectiveness
values to ensure resources are focused on high-risk areas. of the emergency plan and identified areas of weak safety awareness for
subsequent enhanced training.Key Performance
New Cohesion Conducted "Emergency Escort Healthy Future" Health Education Lecture
During the reporting period
In April 2025 New Cohesion organized a special health education lecture
the company regularly carried out safety inspections and hazard identification and management in production
inviting a teacher from the Wuxi Weimin Health Office. The content covered
areas focusing on key aspects such as equipment/facility operation personnel operation compliance and on- CPR first aid knowledge the Heimlich maneuver occupational health
site management processes. It focused on preventing risks such as mechanical injury fire/explosion electric chronic disease prevention and mental health counseling. The training
covered all employees. This lecture enhanced employees' health literacy
shock and crane-related injuries achieving a 100% inspection coverage rate and a 100% hazard identification and emergency self-rescue capabilities serving as an important practice for
rate as well as a 100% rectification rate for identified hazards. the Company to implement occupational health management and build a
safe and healthy working environment.EHS Training
YIFI Intelligent Conducts "Forklift Emergency Accident Drill"
In 2025 the Company conducted systematic and multi-level training and emergency drills centered on occupational In April 2025 to implement the principle of "giving equal importance
health and safety production organizing a total of 15 various EHS training sessions and 4 emergency drills. Training to prevention and emergency response" YIFI Intelligent organized and
content covered key areas such as post-holiday resumption of work electrical safety gas cylinder and special equipment conducted a forklift accident emergency rescue drill. The drill simulated
management job-specific safety operating procedures CPR summer heat prevention radiation safety and fire safety. a scenario where a forklift operating in the plant area accidentally struck
Training targets included safety officers in various areas property management personnel special equipment managers a workshop employee. Following the simulated accident the emergency
project managers supplier representatives and relevant personnel from the research institute with over 180 participants plan was quickly activated. All phases including cordoning off the area
in total. The training adopted a combination of online and offline methods emphasizing both theory and practice. Practical medical rescue and equipment hazard elimination were executed with
drills such as radiation leakage emergency drills fire drills severe weather tabletop simulations and mechanical processing rapid response clear division of labor close coordination and standardized
cell warehouse drills effectively tested the operability of the emergency plans enhanced employees' emergency response procedures successfully achieving the expected drill objectives.capabilities and safety awareness laying a solid foundation for the Company to build an intrinsically safe enterprise.
89 902025 Environmental Social and Governance (ESG) Report
Management of Impacts Risks and Opportunities Systematic Talent Cultivation Empowering
The safety and environmental personnel in the Company's Administration Department and workshop safety Growth
management personnel are responsible for daily inspections conducting classified checks on general and significant
environmental aspects and recording rectifying and verifying non-conformities. Before holidays and during
Centering on the organizational construction goal of "efficiency and professionalism" YIFI Laser upholds the talent philosophy
seasonal changes they organize special inspections for fire prevention electricity use etc. and fill out corresponding
of "valuing both integrity and ability prioritizing integrity optimizing talent potential and achieving shared growth." Through
record forms. For hazardous operations such as hot work work at height and confined space entry they strictly verify
a talent development model of "data-driven efficiency-first growing with the business" it has built a complete talent
work permits and the implementation of safety measures. They implement full-process control over contractors
development system covering "recruitment and optimization - training and development - systematic construction - talent
including qualification review safety agreement signing entry training on-site supervision and hazardous materials
echelon building." Through hierarchical and classified precise training courses improved key talent training mechanisms and
management dealing with violations according to the Disciplinary Regulations.clear and implementable career development channels the company continuously empowers employees' growth helps
In accordance with the Control Procedure for Environmental Occupational Health and Safety Monitoring and employees achieve personal value improvement and finally achieves a win-win situation between employees' value and
Measurement the Administration Department annually conducts statistical analysis of environmental occupational enterprise development laying a solid talent foundation for the company's high-quality development.health and safety inspection results and submits them to the management review meeting providing a basis for
management's continuous improvement decisions. Concurrently the Administration Department conducts an Training System
annual evaluation of compliance with the list of "environmental occupational health and safety laws regulations
and other requirements" checking the implementation of laws and regulations and updating them promptly.Adhering to the fundamental training principles of "practicality effectiveness and targeting" and following the
Indicators and Targets training policy of "by level by category by stage" the Company has established a company-wide training mechanism deeply aligned with its strategy. The training system consists of an operation system and a support system covering
the entire process of needs research plan formulation training implementation and effectiveness evaluation.The Company has set the occupational safety and health management objectives of "zero fatal accidents and zero
occupational hazard accidents" integrating this long-term vision into the formulation and assessment of various
quantitative indicators. Through the hierarchical decomposition of annual goals dynamic monitoring of daily System Main Content
processes and continuous improvement of problem rectification the effective operation of the occupational safety Component
and health management system is ensured and the harmonious unity of employees' physical and mental health and Based on performance improvement goals it promotes the growth of employee knowledge skills and
Operation
the company's high-quality development is finally achieved. mindset forming a positive cycle of training needs research plan formulation training implementation and System
effectiveness evaluation.Support Training organizational structure system revision learning platform (Zhuoyi Academy) learning culture
Indicator Unit 2025 System construction curriculum system and instructor system.Total Investment in Safety Production RMB 10000 18.96 Possesses the "Zhuoyi Academy" online learning platform continuously improving online course development
Online
to meet employees' fragmented and personalized learning needs; developed 119 internal and external course
Number of Work-Related Injury Incidents (Employees) Case(s) 1 Platform resources in 2025.Number of Work-Related Injury Incidents (Contractors) Case(s) 0
Number of Work-Related Injuries (Minor Injuries and Above) Person(s) 1
The Company sets differentiated training courses for new employees on-the-job employees and management
Fatalities in Work-Related Accidents Person(s) 0 personnel ensuring that training content precisely matches the capability requirements of each job level.Number of Employee Occupational Health Training Sessions Session(s) 2
Employee Occupational Health Training Hours Hours 1312
Key Performance
Employee Occupational Health Training Coverage Rate % 100
Employee Medical Examination Coverage Rate % 100 In 2025
Occupational Disease Incidence Rate % 0 it conducted 118 professional skills training sessions training 2358 person-times annually with a total of
Average Occupational Health and Safety Training Hours per Employee Hours 8.71
7749 training hours. The core project the "Innovation in Action Intelligence Leading the Future" Young and
Number of Emergency Drills for Safety Production Session(s) 4
Middle-Aged Cadre Training Camp totaled 45 class hours.Participants in Emergency Drills for Safety Production Person-times 125
91 922025 Environmental Social and Governance (ESG) Report
Training
Course Setting
Target Industrial Synergy Co-creating Value
New Onboarding training series (company introduction system explanation safety knowledge management system
Employees etc.) totaling 12 class hours scheduled monthly; probationary period career coaching plan.On-the-Job Job training map business knowledge and professional skills (conducted monthly) safety training series courses Deep Integration of Industry Academia and Research
Employees (monthly) general workplace courses (official document writing business etiquette emotional management etc.).Capability enhancement through projects such as the "Young and Middle-Aged Cadre Training Camp" and
Management The Company places great importance on collaborative innovation with universities and research institutions. As a
"Zhuoyi Academy" adopting a combination of learning and practical training. Provided optional learning paths for
Personnel
management personnel including "degree education" (such as MBA courses) and "job certification." long-term stable internship and training base for top domestic universities such as Huazhong University of Science
and Technology as of the end of the Reporting Period we have established cooperation with Huazhong University of
Special Certification training and practical guidance for special operators ensuring 100% certification for positions. Science and Technology Huazhong Agricultural University the Chinese Academy of Sciences Jiangsu University and
Positions Provides special financial support for the certification and renewal of licenses for forklift operators electricians etc.Songshan Lake Materials Laboratory deeply practicing the social responsibility of integrating industry and education
and collaborative talent cultivation."Innovation in Action Intelligence Leading the Future" YIFI Laser "Young and
Middle-Aged Cadre Training Camp"
Leading the "Key Technologies and Equipment Development for Precision Laser
In January 2025 the Company conducted the Young and Middle-Aged Welding of Full-Tabs in Large Cylindrical Batteries" Project
Cadre Training Camp for young and middle-aged management cadres
and key employees. Adopting a model combining "external training + On August 29 2025 the project "Key Technologies and Equipment
practical training" it systematically empowered participants on themes Development for Precision Laser Welding of Full-Tabs in Large
such as leadership talent management and performance improvement Cylindrical Batteries" led by the Company and jointly undertaken
effectively strengthening the practical capabilities of the management by battery enterprises such as EVE Energy Gotion High-Tech
team and injecting core momentum into the Company's sustained growth. CORNEX NEW ENERGY and Yunsa Energy as well as research
institutions including Huazhong University of Science and
Technology and Wuhan Yizhixingcheng Technology Testing Co.Ltd. was officially launched. Through the collaborative innovation
Talent Cultivation and Development of "government industry academia research and application"
the project aims to comprehensively improve the mass production
The Company has established a systematic talent management system for key positions. Centered on the principles of processes and equipment levels for large cylindrical batteries."internal cultivation as the main approach external recruitment as a supplement fair competition and merit-based selection"
it scientifically selects talents for key positions from three dimensions: value standards competency standards and values
standards. Through the development of internal and external course resources and the enhancement of professional skills
training it gradually establishes a systematic talent cultivation mechanism. Through IDP (Individual Development Plan) projects Organize enterprise training programs for current university students
it promotes the transformation of management capabilities and completes full coverage of the job skill matrix inventory
providing employees with clear career development paths. In 2025 the Company successfully accepted and systematically organized corporate training projects for a
total of 160 person-times of university students from Huazhong University of Science and Technology and
In terms of training methods the company adopts various forms such as job rotation internal part-time work talent
other institutions. All trainees were included in the Company's unified "on-the-job personnel" training system
deployment systematic on-the-job training and on-the-job coaching to comprehensively improve employees' comprehensive
ensuring they received safety compliance and job skills training to the same standards as regular employees.quality. At the same time it is clearly stipulated that talents in key positions must complete rotations in no less than 2 positions
before they can participate in the promotion competition so as to ensure that talents have comprehensive capabilities and
practical experience and help talents achieve all-round development.Regarding promotion paths the Company has designed a clear growth path for management personnel: Junior managers focus
on role recognition and task execution; middle managers focus on team management and goal execution; senior managers
focus on strategic decision-making and leadership. Through procedures such as competitive selection for positions democratic
evaluation and cadre assessment it ensures the openness fairness and impartiality of the selection process.Furthermore the Company gradually improves its internal instructor team motivating internal experts to accumulate and pass
on knowledge through course development incentives providing a continuous supply of instructors for talent cultivation.
93 942025 Environmental Social and Governance (ESG) Report
Leading the Formulation of Industry Standards Industry Cooperation
The Company actively participates in industry technical exchanges and standard formulation work. Leading or In 2025 YIFI Laser deeply integrated into the industry ecosystem continuously expanding its brand influence through multi-
participating in the development of national industrial and group standards it promotes the standardized development dimensional industrial synergy practices. We made frequent appearances at numerous domestic and international forums and
of the laser equipment field. As of the end of the reporting period the total number of standards the Company has exhibitions establishing deep connections with global industrial chain partners. Through industry activities while consolidating
participated in formulating is 45 including 3 national standards 23 group standards and 19 enterprise standards. The our leading position in lithium battery equipment technology we continuously convey the brand value of China's intelligent
Company's products are widely used in multiple fields such as new energy batteries semiconductors and automotive manufacturing. During the reporting period the company participated in 27 industry exhibitions and forums.components. Leveraging profound technological accumulation and rich industry application experience it provides strong
support for the intelligent upgrading of downstream industries.Signed a strategic cooperation agreement with Endurance
Participation in Formulating Group Standards
The Company signed a strategic cooperation agreement
with Endurance a leading Indian automotive component
The Company actively participates in the formulation manufacturer. This partnership will leverage YIFI Laser's
of industry standards. In 2025 as the primary drafting innovation capabilities alongside Endurance's industrial
entity the Company worked on the group standard integration capabilities focusing on advanced battery
for "Large Cylindrical Battery Intelligent Production technology areas. They will engage in joint R&D for innovative
Line" which is expected to be completed in 2026. processes and equipment collaborate on developing the cell
and module/PACK market and jointly refine localized service
networks across regions including India in order to address
the rapidly developing global new energy industry.Participation in Industry Associations Participation in International Exhibitions
We deeply integrate into the industry ecosystem actively constructing a multi-dimensional industrial collaboration
network. By holding core positions in industry associations related to laser processing welding technology
mechanical engineering and software informatization the Company effectively participates in industry policy
discussions technical standard exchanges and industrial resource matching.Industry Organization Name Participating Body Membership Level
China Industrial Association of Power Sources Wuhan YIFI Laser Corp. Ltd. Member
Executive Council Member
China Welding Association Wuhan YIFI Laser Corp. Ltd.Deputy Chairman Unit The Battery Show Korea The Battery Show North America
China Machinery Industry Federation Wuhan YIFI Laser Corp. Ltd. Member
Hubei Mechanical Engineering Society Wuhan YIFI Laser Corp. Ltd. Executive Council Member
Hubei Laser Industry Association Wuhan YIFI Laser Corp. Ltd. Deputy President Unit
Hubei Software Industry Association Wuhan Dayan Software Co. Ltd. Member
Wuhan Enterprise Confederation Wuhan
Wuhan YIFI Laser Corp. Ltd. Deputy President Unit
Entrepreneurs Association
Wuhan Laser Association of Optics Valley of China Wuhan YIFI Laser Corp. Ltd. Deputy President Unit
The Listed Companies Association of Hubei Wuhan YIFI Laser Corp. Ltd. Member ees Europe The Battery Show Europe
95 962025 Environmental Social and Governance (ESG) Report
Participation in Domestic Exhibitions and Forums Fulfilling Responsibilities Contributing to
Society
YIFI Laser consistently integrates social responsibility into its corporate development strategy actively giving back to
society and focusing on key areas such as education community development and rural revitalization. In 2025 the
Company continued to deepen its public welfare practices expand participation methods enhance social impact and
promote the common progress of the enterprise and society. Through educational assistance and community support
we actively fulfill our corporate citizenship obligations donating RMB 100000 to the "Optics Valley Charity Student Grant"
LCB 2025 Large Cylindrical Battery Technology and Co-authored and released the "2025 China Large specifically to support local students in need and promote educational equity.Market Development Summit Forum Cylindrical Battery Industry Development White Paper"
Promoting Consumption-Based Poverty Alleviation Procurement
In response to the national rural revitalization strategy the Company actively advances targeted rural revitalization
procurement initiatives. It has made targeted purchases of high-quality local agricultural products and specialty
foods from Lichuan Enshi including specialty tea Huangjing products and preserved pork with total procurement
amounting to RMB 232200. These efforts have effectively helped local farmers increase their incomes and achieve
prosperity supported the sustainable development of rural industries and embodied the Company's responsibility
and commitment to contributing to rural revitalization.Starting Point Lithium Cylindrical Battery Technology Forum The 18th GGII Lithium Battery Industry Summit Promoting Ethnic Unity
The company has always adhered to the principles of equality unity mutual assistance and harmony among all
ethnic groups actively implemented the relevant requirements for ethnic unity and progress and taken the initiative
to absorb compatriots from ethnic minorities for employment helping to promote the integrated development of
ethnic unity.At present the company has recruited compatriots from multiple ethnic minorities such as Tujia Miao and Chaoxian
ethnic groups to join the team providing ethnic minority employees with equal employment opportunities a fair
development platform and a sound rights and interests protection system.Optoelectronic Expo CBIS2025 Power Battery Summit
We respect the customs and habits of all ethnic groups advocate mutual help and common growth among
Professional Fulfillment with Efficient Delivery employees of all ethnic groups and gather the joint force of ethnic unity through employment empowerment which
fully demonstrates the company's social responsibility and humanistic care.Key Performance
During the reporting period
Social welfare investment: RMB 100000 Consumption Poverty Alleviation Procurement Amount: RMB 232200
The mass production line of 46-series large cylindrical Ecosion's first 180ppm automatic assembly line for large
batteries was smoothly delivered to a top-tier global cylindrical battery covers in the industry has been rolled
battery customer. off the production line.
97 982025 Environmental Social and Governance (ESG) Report
Appendix
Data Performance Table Indicator Category Indicator Name 2025 Unit
Total Investment in Safety Production 18.96 RMB 10000
Financial Performance Occupational Health Training Coverage Rate 100 %
Average Training Hours per Employee 8.71 Hours
Indicator 2023 2024 2025 Unit
Number of Work-Related Injuries (Employees) 1 Person(s)
Revenue 67085.75 69206.87 80301.21 RMB 10000
Number of Work-Related Injuries (Contractors) 0 Person(s)
Total Assets 247724.15 282398.60 313521.85 RMB 10000
Occupational Health and Fatalities in Work-Related Accidents (Employees) 0 Person(s)Net Profit Attributable to Shareholders of the Parent
9680.53 2542.93 -4894.84 RMB 10000
Company Safety Production Fatalities in Work-Related Accidents (Contractors) 0 Person(s)
Tax Paid 3090.82 1872.51 3119.53 RMB 10000
Number of Fatal Work-Related Accidents (Employees) 0 Case(s)
Amount Paid for Share Repurchases (Excluding
- 8307.19 7757.88 RMB 10000
Transaction Fees) Number of Fatal Work-Related Accidents (Contractors) 0 Case(s)
Total Cash Dividends Distributed (Tax Included) 3104.73 1219.72 7757.88 RMB 10000 Contractor Safety Agreement Signing Rate 100 %
Coverage Rate of Occupational Health Examinations 100 %
Note: In accordance with the Rules on Share Repurchase by Listed Companies cash-based share repurchases by listed companies
via tender offer or centralized bidding shall be regarded as cash dividends and included in the relevant proportion calculation. Occupational Disease Incidence Rate 0 %
Public Welfare and
Total Public Welfare and Charity Investment 10 RMB 10000
Social Performance Charity
Supply Chain
Total Number of Suppliers 1000+ Number
Management
Indicator Category Indicator Name 2025 Unit
Information Security and Information Security Incidents or Violations of Relevant
0 Case(s)
Total Number of Privacy Protection Laws and Regulations
Total Number of Employees 1153 Person(s)
Employees
R&D Investment 11136 RMB 10000
Number of Employees by Number of Male Employees 983 Person(s) R&D Investment as % of Revenue 13.87 %
Gender Number of Female Employees 170 Person(s)
Number of R&D Personnel 453 Person(s)
Master's Degree and Above 60 Person(s)
R&D Personnel Ratio 39.29 %
Proportion of Employees Bachelor's Degree 449 Person(s) Accumulated applications for intellectual property rights: 1095 Case(s)
by Education College Diploma 466 Person(s)
Number of valid intellectual property rights held: 742 Case(s)
Below College Diploma 178 Person(s) Innovation Drivers Number of invention patents held: 158 Case(s)
30 and Below 511 Person(s)
Number of utility model patents held: 368 Case(s)
Proportion of Employees 31 to 40 506 Person(s) Number of design patents held: 18 Case(s)
by Age 41 to 50 118 Person(s)
Number of new intellectual property rights applications
51 Case(s)
51 and Above 18 Person(s) filed:
Total Number of Trainees 1153 Person(s) Number of new intellectual property rights granted: 106 Case(s)
Employee Training
Total Employee Training Hours 8810.35 Hours Number of software copyrights held: 159 Case(s)
99 1002025 Environmental Social and Governance (ESG) Report
Governance Performance Report Index Table
Indicator Category Indicator Name 2025 Unit Global Reporting Initiative (GRI)
Guidelines No. 14 of Shanghai Stock Exchange for Self-
Chapter/Section Sustainability Reporting
Regulation of Listed Companies—Sustainability Report (Trial)
Standards (GRI
Number of Board Members 9 Person(s) Standards)
Number of Female Directors 0 Person(s) About This Report 2-1、2-2、2-3
Corporate
Governance Message from the Chairman
Number of General Meeting of Shareholders Held 3 Session(s)
About YIFI Laser
Number of Board Meetings Held 8 Session(s) ESG Governance Due Diligence Stakeholder Engagement 2-29、3-1、3-2、3-3
Feature: Platform Enhancement and Multi-Dimensional Expansion: The "Laser + Intelligent Equipment" Strategy Driving a New
Number of Periodic Announcements Disclosed 3 Number Paradigm of Sustainable Development
Information Illuminating Foundations Fortifying Sustainable Roots
disclosure Number of Interim Announcements and Online Disclosure
142 Number
Documents Improving Governance Fortifying the Foundation 2-9、2-10
Party Building Leadership Building Consensus
Strengthening Internal Control Strictly Adhering to Anti-Commercial Bribery and Anti-Corruption 205-1、205-2、205-
Compliance Anti-Unfair Competition 3、206-1
Transparent Communication Safeguarding Rights and
Environmental Performance Interests
Digital-Intelligent Integration Enhancing Efficiency
Illuminating a New Chapter Driving Industrial Progress
Indicator Innovation Drivers、Ethics of Science and Indicator Name 2025 Unit Innovation Leadership Driving DevelopmentCategory Technology(N/A to Core Business)
Striving for Excellence Strictly Controlling Quality Product and Service Safety and Quality 2-6
Environmental
compliance Environmental Violations and Penalties 0 Case(s) Reliable Service Optimizing Experience Product and Service Safety and Quality
management
Data Security and Privacy Protection Data Security and Customer Privacy Protection 418-1
Water Resource
Total Water Consumption 39481 Tonne(s) Supply Chain Security Equal Treatment of Small
Management Industrial Chain Leadership and Synergy Enhancement 308-1and Medium-Sized Enterprises
Illuminating Nature Practicing Green Development
Natural Gas Consumption 11965 m3
Environmental Management Standardized Procedures Environmental compliance management
Gasoline Consumption 16309.35 L
Energy Pollution Prevention and Emission Control Pollutant Discharge Waste Disposal 306
Management
Purchased Electricity 1886.72 MWh Climate Governance Anchoring Dual Carbon Goals Addressing Climate Change 305-1305-2
Energy Utilization Water Resource Utilization
Energy Management Efficient Utilization 301-2303-1303-2
Self-Consumed PV Electricity 115.04 MWh Circular Economy
Harmonious Coexistence Protecting Ecology Ecosystem and Biodiversity Protection 101-2
Scope 1 GHG Emissions 61.17 tCO2e Illuminating Hearts Building a Harmonious Ecosystem Together
2-7、201-3、401-
Scope 2 GHG Emissions 1228.22 tCO e Compliant Employment Caring for Employees2 1、401-2
Addressing Safety Production Health Protection 403
Climate Change Total Greenhouse Gas Emissions Employees
1289.39 tCO e
(Scope 1+2) 2 Systematic Talent Cultivation Empowering Growth
Greenhouse Gas Emission Intensity Industrial Synergy Co-creating Value
0.016 tCO2e/ RMB 10000 of revenue(Scope 1+2)
Fulfilling Responsibilities Contributing to Society Rural Revitalization Social Contributions 203-1
101 1022025 Environmental Social and Governance (ESG) Report
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1. Do you find the wording design and layout of this report easy to understand and read Wuhan YIFI Laser Corp. Ltd.
□ Yes □ Fair □ No _____________________________________________________________________
2. D o you believe this report objectively and fairly reflects the Company's practices and performance in the 3. W hat opinions or suggestions do you have regarding the Company's Environmental Social and Governance (ESG)
environmental dimension management work
□ Yes □ Fair □ No _____________________________________________________________________
3. D o you believe this report objectively and fairly reflects the Company's practices and performance in the social
dimension
Contact Us:
□ Yes □ Fair □ No
Address:_________________
4. D o you believe this report objectively and fairly reflects the Company's practices and performance in the corporate
governance dimension Tel:_________________
□ Yes □ Fair □ No Email:_________________
Fax:_________________
103 1042025 Environmental Social and Governance (ESG) Report
Independent Assurance and Statement of Opinion procedures for such information confirmed the overall performance situation and evaluated and verified whether the contents of the Report are complied with.
5. Verified the process management of the principles of inclusiveness substantiality responsiveness and impact in the Report and its
related AA1000 to confirm the appropriateness of this Statement.InFaith Consulting (here in after referred to as "InFaith") as entrusted by Wuhan YIFI Laser Corp. Ltd. (here in after referred to as "YIFI
Laser") has conducted independent limited assurance of the environmental social and governance information and data disclosed 6. Sampled inspection on supporting evidence of data reliability and quality of selected specific performance information.in YIFI Laser 2025 Environmental Social and Governance (ESG) Report (here in after referred to as "the Report") and disclosed the
7. Recalculated and verified the selected specific performance information.
assurance result and conclusion to readers of the Report in the form of independent assurance and statement of opinion.
8. Performed other procedures that we deemed necessary.
Independence and Capability
1. All the assurance team members of InFaith have no business relationship with YIFI Laser that leads to conflicts of interest. The team Assurance Conclusions
of InFaith has performed this assurance work independently. 1. According to the information provided by YIFI Laser and the sample test there is no material misrepresentation in the Report.
2. The assurance team of InFaith consists of experienced professionals in the industry. Relevant persons have received professional 2. For the principles of inclusiveness substantiality responsiveness and impact included in AA1000AS v3 the detailed assurance
training on the GRI Standards issued by the Global Reporting Initiative AA1000AS v3 ISO 14001 ISO 26000 SA 8000 EcoVadis global conclusions are as follows
supply chain rating and other sustainability-related standards and have adequate understanding and practical experience in relevant
international principles evaluation systems and assurance standards.YIFI Laser has announced major topics that will have substantial influence and impact on the evaluation
Assurance Statement Inclusivity decisionmaking actions and performance of the organization and its stakeholders and judged and
1. YIFI Laser management shall be fully held accountable for the preparation and content of the Report. It is the responsibility of InFaith improved the management and performance of the issues.
to conduct an assurance based on the scope as described herein and to provide professional assurance opinions to the Report readers YIFI Laser has announced significant topics that have a substantial impact and influence on the organization
and stakeholders. Materiality and its stakeholders' assessments decision making actions and performance. The company has also
conducted judgments and improvements on the management and performance of these topics.
2. Based on the assurance scope limits InFaith shall in accordance with AA1000AS v3 conduct independent limited assurance and
guarantee conclusion for the matters within the scope defined in the Report. In addition to providing independent assurance and YIFI Laser has implemented relevant policies and is able to respond to issues that concern the stakeholders
Responsiveness
making other statements of opinion on the facts of assurance under the conclusion InFaith will not assume any legal or other liabilities in a timely manner.for any inquiries for any other purposes or for any other persons who read this Independent Assurance and Statement of Opinion.YIFI Laser has the adequate ability to identify substantive issues. It has implemented balanced and effective evaluation
3. If you have any questions about the contents contained herein or related matters YIFI Laser will reply in a lump sum. and disclosure methods and has established a systematic process for monitoring measurement evaluation and Impact
management impact so as to achieve more efficient management of decision-making and results within the
4.In the event of any conflict or inconsistency between the Chinese version and the English version of this Independent Assurance and organization and demonstrate the impact of the substantive issues in an impartial and objective manner.
Statement of Opinion the Chinese version shall prevail.
3. Based on the procedures implemented and the evidence obtained by InFaith we have found nothing that causes us to doubt the
Assurance Standard
reliability and quality of the specific performance indicators selected in the Report.InFaith adopts AA1000AS v3 type-1 medium assurance level which includes YIFI Laser's evaluation of the compliance situation and
degree of the four AA1000AS v3 assurance principles including inclusiveness substantiality responsiveness and impact. Limitation
The assurance process was carried out at the location within the scope of the Report.Assurance Scope
Because there is no internationally recognized and commonly used standard for the evaluation and measurement of non-financial
1. The assurance scope is limited to the information and data of YIFI Laser and its affiliated companies covered by the Report excluding
the data and information of YIFI Laser suppliers contractors and other third parties. information the application of different but acceptable information and measurement technologies may affect the comparability with
other institutions.
2. InFaith adopts AA1000AS v3 type-1 medium assurance level to evaluate YIFI Laser's compliance nature and degree of the four
assurance principles in AA1000AS v3. If you have any advice for this Independent Assurance and Statement of Opinion you may contact:
Tel: 021-20740303
Assurance Process and Work
In order to gather evidence relevant to the formation of the conclusion InFaith has done the following work: Email: esg@infaith.com.cn
Address: 17F Tower 1 Lujiazui Riverside Center 257 Lane Binjiang Avenue Pudong New District Shanghai
1. Had interviews with the management team and employees of YIFI Laser to understand the overall situation and relevant processes
of the fulfillment of its environmental social and governance responsibilities.
2. Verified key developments and policy implementation of the relevant YIFI Laser's organizations and reviewed supporting evidence For and on behalf of InFaith Consulting
for the claims made in the Report. Signed:
3. Through the interviews and the assurance of relevant documents learned about YIFI Laser's main stakeholders and their
expectations and demands the specific communication channels between both parties and how YIFI Laser responds to their
expectations and demands.Shanghai April 2026
4. Selected the relevant part of environmental social and governance information in this Report performed analytical assurance
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