2023 ESG Report

OVERVIEW

Statement Data

This is the first Environmental Social and Governance (ESG) Report published by Gree Electric The qualitative and quantitative information used in this report comes from publicly available information

Appliances Inc. of Zhuhai. The Report mainly discloses the Company's efforts to actively respond to internal documents and relevant statistics of Gree Electric Appliances Inc. of Zhuhai and the disclosure

the opportunities and challenges of sustainable development integrate ESG management into the scope is consistent with the scope of the consolidated financial statements. Other contents that differ

Company's management and operations and create comprehensive economic social and environmental from this scope will be explained in the Report. Unless otherwise stated all amounts mentioned

value for its stakeholders. hereunder shall be denominated in CNY.References Executive Summary

This report has been prepared with reference to the "GRI Standards" issued by the Global Sustainability For ease of expression "Gree Electric Appliances Inc. of Zhuhai" is referred to as "Gree Electric"

Standards Board (GSSB) the "Sustainable Development Goals (SDGs)" of the United Nations the "Gree" "the Company" or "we" in this Report."Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies -

Standard Operation of Companies Listed on the Main Board" and "Guidelines No. 1 of the Shenzhen

Stock Exchange for the Self-regulation of Listed Companies - Business Handling" issued by the

Shenzhen Stock Exchange. Acquisition

This electronic version of this Report can be accessed on the Company website (http://www.gree.com.Time Period cn) Shenzhen Stock Exchange website (http://www.szse.cn) and CNINFO (www.cninfo.com.cn).The Report covers the period from from January 1 2023 to December 31 2023. To enhance the

completeness of the Report some content may beyond the above time period.Contact

Scope If you have any questions suggestions or comments on this Report please contact:

Address: West Jinji Road Qianshan Zhuhai

Tel: 0756-8669232

Unless otherwise indicated the scope of organization of this Report covers Gree Electric Appliances

Inc. of Zhuhai its branches subsidiaries and various production bases.

012023 ESG Report

Chairman's Message

Hello everyone thank you for reading this report. On behalf of the global refrigeration industry. Gree's globally pioneering "Zero Carbon washer-dryers developing a heat pump washer-dryer that can achieve

Board of Directors of Gree I would like to express my gratitude for Source" PV energy-storage air-conditioning technology has won the 37°C low-temperature drying without damaging clothes addressing

your long-standing concern for Gree! In 2023 facing a complex and first Chinese Patent Gold Award in the central air conditioning industry the shortcomings of traditional washing machines in wrinkle and care

variable global economic environment all Gree employees fought hard and received the highest award at the Global Refrigeration Technology removal enabling dry cleaning at home.and rose to the challenge creating the best results since the Company Innovation Competition. This technology uses only one-fifth the energy

was founded 33 years ago. Our annual revenue reached CNY205.018 of traditional technologies and can generate and supply power by In terms of corporate governance we have always adhered to the

billion with net profits attributable to shareholders of listed companies itself reducing carbon emissions by nearly 90%. From the perspective governance principles of transparency accountability and efficiency

of CNY29.017 billion and tax contributions of approximately CNY17.6 of saving on electricity costs the investment cost can be recouped earnestly implemented the "Company Law of the People's Republic of

billion. within five years. Currently this technology serves 35 countries globally China" and other laws and regulations and followed international best

saving an average of 14300 kWh per project annually. practices to ensure the creation of sustainable value for shareholders

We understand that the success of a company is not only reflected in and society. To this end we have rigorously selected and recruited

its economic benefits but also in its contributions to the environment In terms of industrial upgrading since 2016 we have been vigorously board members who possess the necessary qualifications and

and society. Environmental Social and Governance (ESG) as promoting industrial upgrading advancing digital development experience meet the requirements of diverse backgrounds and bring

a concrete management tool for implementing the concept of continuously improving the level of intelligence and committing in multiple perspectives to enhance the breadth and depth of decision-

sustainable development at the corporate level makes it an undeniable ourselves to realizing the data operation and platform operation of making; we have strengthened our internal control management

responsibility for the company to carry out comprehensive and well- the entire value chain. Particularly in the production chain we have system to ensure that all our business activities comply with the law

implemented ESG management and information disclosure. Hence promoted the design development and implementation of digital and a high level of business ethics thereby preventing risks and

we have completed the compilation of our first ESG report and we platforms. In 2023 the first high-density "automation intelligence and protecting the rights and interests of our stakeholders; we have always

welcome everyone to learn about the related actions Gree has taken in digitalization" integrated production line of our "Black Light Factory" emphasized the importance of shareholder returns with particular

the ESG area in recent years. in Gaolan Port was put into operation. It incorporates a number of emphasis on protecting the rights and interests of small and medium-

technologies such as automatic assembly fastening welding pasting sized shareholders ensuring that they can fairly share the fruits of

In fact before the publication of this ESG report we had already and testing greatly improving the production efficiency promoting the the Company's development. To date we have distributed more than

released social responsibility reports for seventeen consecutive low-carbon and environmental protection in the production process and CNY142 billion in dividends demonstrating our long-term commitment

years. Enterprises are builders of the nation and every enterprise accelerating the transformation of green development. to our shareholders.should become a healthy "cell" in society actively taking on social

responsibilities. The fate of enterprises is intertwined with that of the Socially we develop home appliances around the needs of the people Gree's remarkable achievements in 2023 are already engraved in the

nation and humanity. Therefore against the backdrop of global climate for a better life. The General Secretary proposed that the people's records and the journey of pursuing dreams in 2024 has also begun.change as a responsible manufacturing company we should contribute aspirations for a better life are our goal. Now we can say that Gree National intelligent manufacturing green development low-carbon

to the planet and the good life of people. develops and manufactures whatever people need for a better life. Our innovation and a better life are the eternal missions of Gree. In the Year

"Windless Air Conditioner" solves the long-standing issue of discomfort of the Dragon a lucky year for the Chinese nation Gree will wave the

In terms of the environment we have always embraced the national caused by direct cold air blowing from air conditioners and it can also banner of "Made in China" with the vigor of a soaring dragon vigorously

sentiment of green development. As early as 2013 we proposed the save 15% energy; we have produced a flower-level fresh-keeping advancing on the path to becoming a powerful manufacturing nation.slogan "For the Clearer Sky and Greener Earth" and integrated this refrigerator powered by -5°C cell-level fresh-keeping technology and

concept into our innovation and production practices. Today of Gree's -38°C deep freeze fresh-keeping technology which not only prevents

44 internationally leading technologies 41 are related to green energy meat from spoiling but also keeps flowers fresh for 20 days without

saving. In the era of low carbon Gree serves green development with wilting or discoloration allowing consumers to enjoy a better life; we

our products creating some of the most energy-efficient products in the have integrated air conditioner compressor technology into traditional

022023 ESG Report

About Gree

Company Profile

Gree Electric Appliances Inc. of Zhuhai was established in 1991 and listed on the Shenzhen Stock Regarding quality management Gree adheres to the principle of honest operation customer-oriented

Exchange in November 1996. The Company started by assembling and producing household air approach and strict control over quality and system construction. This commitment to quality has

conditioners and has now evolved into a diversified and technologically oriented global industrial earned the Company a good reputation in the market winning the third "China Quality Award" in

manufacturing group. Its industries span consumer goods and industrial equipment with products sold in 2018. Additionally Gree actively participates in the formulation of national standards to promote the

over 190 countries and regions. improvement of industry quality levels.In terms of industrial layout Gree has actively expanded in both domestic and foreign markets by With respect to transformation and upgrading Gree actively responds to supply-side structural reforms

establishing 77 manufactures facility across provinces and cities such as Guangdong Chongqing and optimizes its industrial layout and advances intelligent manufacturing upgrades. The Company has

Anhui as well as in countries including Brazil and Pakistan. The Company has also set up six recycling expanded from specializing in air conditioning production to a diversified high-end technology industry

facility covering the entire industrial chain from upstream production to downstream recycling achieving including intelligent equipment and communication equipment. Gree's intelligent equipment not only

a green recycling and sustainable development model. supports the Company's own automation transformation but also provides advanced equipment and

services for other industries.About innovation Gree has set up 16 R&D center covering multiple fields such as refrigeration

technology and electromechanical technology. It hosts 152 research institutions 1411 laboratories Gree always adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics

and an academician workstation. Gree sticks to the principle of "investing on demand without setting for a New Era remains true to its original aspiration keeps its mission firmly in mind sticks to the

a ceiling" in scientific research investment which brings remarkable achievements in technological real economy follows the path of self-reliance and innovation and accelerates the informatization of

innovation to the Company. As of March 2024 Gree has applied for a total of 119842 patents owns management automation of production and intellectualization of products to continue to lead the

44 "internationally leading" technologies and has received multiple national scientific and technological global HVAC industry's technological development. The Company keeps striving in fields like intelligent

awards. equipment communication equipment and molds creating more leading technologies to fulfill the global

consumers' aspiration for a better life and setting sail in the intelligent era to write a new chapter!

032023 ESG Report

Corporate Culture Gree's "real" culture

The corporate culture of Gree is

Less talk More action centered around the core principles

of "realism trustworthiness integrity

innovation and respect" forming a

culture of external expansion and

Vision Mission Spirit Loyalty Law-abiding internal restraint that emphasizes

friendliness ct In

pe t

and honest

diligence and e practicality and keeping pace with the

Carry forward the industrial ambition Less talk times. This excellent traditional style

spirit master core and strong spiritual force powerfully

technology Quality first Real promote the Company to always stick to

Create a world-class and customer

Loyalty friendliness diligence satisfaction More action its original aspirations focus on industry enterprise Achieve Gree to Pursue perfect quality

and ambition Honest v Dedication to and relentlessly pursue first-class be a century-old brand provide first-class service business and hin Inn

o work pioneering

es excellence and perfection contributing mutual benefit s and innovation the greatest value to society and

Strive for "Made in China creating a better life for humanity!

Loved by the World"

04

Res

ation

rityg

ort

Trus

tw2023 ESG Report

History

1. 1991: Brand 1.0 3. 2010: Brand 3.0 5. 2015: Brand 5.0

Brand slogan:"Gree Creates Much Sales Chance" Brand slogan: "Gree the Mastering of Core Technologies" Brand slogan: "Made in China Loved by the World"

Brand positioning: Turbo Cooling Brand positioning: Leading in Science and Technology Brand positioning: Serve the World

Brand development strategy: Initially establish a Brand development strategy: Transfer from "Made in Brand development strategy: Reshape the image of

high-quality image of Gree air conditioners and China" to "Created in China" "Made in China" to introduce Chinese independent

create core advantages of product brands to the world

2. 1997: Brand 2.0 4. 2013: Brand 4.0 Category slogan: Gree produces excellent electrical appliances

(2022)

Brand slogan: "Making Better Air Conditioners" Brand slogan: "For the Clearer Sky and Greener Earth"

Category positioning: Changing from single air conditioner to full-

Brand positioning: Quality Takes Priority Brand positioning: Undertake Responsibility space health appliances in the consumer category

Brand development strategy: "Excellent strategy" Brand development strategy: Shoulder the responsibility Category development strategy: Demonstrate Gree's

of producing excellent products and creating of environmental protection and green development technological innovation strength and diversified industrial layout

famous brands in the field of household appliances

Core Products

052023 ESG Report

Honors

Highlight 2023

Economic performance Environmental performance

The total operating revenue The net profit attributable to shareholders of Adjusted net profit attributable to list company

205.02 29.02 27.57 A total of 9 national green factories was CNY billion listed company was CNY billion shareholders was CNY billion 4 provincial green factories and

5.27 municipal green factories were The accumulated equity financing amounted to CNY billion with total dividends exceeding CNY 142 billion. 3authorized

Among which cash dividends totaled over CNY110 billion and the amount spent on share repurchases totaled

approximately CNY30 billion including about CNY3 billion in share repurchases in 2023.Accumulatively processed more than

Governance performance 56.64 million units/sets of various

waste electrical and electronic products

Held 1 2343 people representing a total of accounting for 42.88% of

General Meeting participated at the 2407051892 Carried out over shares of 342 saving about 61.37 the total number of shares of the

of Shareholders general meeting of energy-saving and cost- million kWh of electricity

shareholders the Company with voting rights Company with voting rights reduction projects

The installed capacity

Held 6 Held 5 Over 40% 22.22% Held 4 investor Answered 146 Tons of CO 2of PV construction 566831equivalent of greenhouse gas

Board Supervisory of independent female relations communicate questions on the interactive has reached

Meetings Meetings directors directors meetings platform of the Shenzhen emissions directly reduced by

Stock Exchange 54MW emission reduction initiatives

062023 ESG Report

Innovation performance Social performance

As of January 2024 the Company As of March 2024 the Company has Employee physical Tax contribution was

44 119842 people examination rate reached has "internationally leading" applied for patents CNY17.58 72610 billion were employed

technologies 100%

A total of 21148 domestic including 64539 59 with a total of and an average annual Completed 25000 satisfaction rate of and foreign invention patents invention patents training projects person-

have been authorized times 98%

16 It has one national key laboratory The Company has set up research one national engineering technology 100% of procurement staff More than 500 suppliers

institutes 152 research institutions research center one national industrial passed sustainable procurement involved in the "conflict

training minerals" survey

1411 laboratories and 1 academician design center and 1 national enterprise

workstation (motor and control) technology center

Customer satisfaction ranked first in the air conditioning

It has trained and recommended 110 national provincial municipal district (county) industry for 12 consecutive years

technical experts and 393 craftsmen who received the relevant honors

072023 ESG Report

Awards and Recognition (As of March 2024)

Innovation awards

Engineering Science and Technology

First and Second Prizes of Guangdong First and Second Prizes of Science and First and Second Prizes of Several Geneva International Talent Contribution Award (Enterprise)

Science andTechnology Award for Tech Technology Award of China National Innovation Award of China Energy Gold Silver and Bronze Medals of International Scientific Exchange

nological Invention Light Industry Council Conservation Association for Inventions Foundation of China

People's Government of Guangdong China National Light Industry Council China Energy Conservation Geneva International Exhibition International Scientific Exchange

Province Association of Inventions Foundation of China

ESG/CSR awards

Green Design Demonstration 2023 Corporate Climate Action 20th Anniversary of Zhuhai Charity Federation - "2023 Outstanding 2022 "Charitable Loving

Enterprise of Industrial Products Case Contribution Compassionate Enterprise" Award Enterprise" Award

National Ministry of Industry and Ministry of Ecology and Zhuhai Charity Federation Zhuhai Charity Federation

Information Environment

2023 Most Influential Reputation List of China Listed Companies for 2022 - China ESG Benchmark Excellent Case of Green

Employer Most Socially Responsible Listed Company Enterprise Award Development in 2023

Haitou.cc National Business Daily iiMedia Research Beijing News Zero Carbon

Research Institute

082023 ESG Report

Comprehensive awards

Greater Bay Area Navigation 2023 Zhuhai Excellent Private

Credit List of Top 500 Listed "Golden Wutong" Listed Company with Award – Award for Outstanding Enterprise 2022 Fortune's Most Influential

Companies in China the Most Investment Value Contribution (Enterprise) IoT Innovation List

Zhuhai Municipal Committee of the

China Enterprise Reform and Chinese Industrial Co-operatives Jian

Financial Information and TMTPOST Hong Kong Ta Kung Wen Wei

Communist Party of China Zhuhai Fortune

Development Society Municipal People's Government

Governance awards/

Brand and marketing awards certifications

2023 Guangdong Enterprise Brand "Give a Like for My Favorite 2023 China Ecological 2022 Annual Model Enterprises

and Enterprise Culture Construction Outstanding Contribution Brand Value Leader China's Brands in 2022" by Brand Forum - Top 100 for Honest and Trustworthy

Model Unit Brand Unit China National Brand Network Annual Brands List Business Practices

Guangdong Research Committee of

Corporate Guangdong Brand Research China Council for Brand China Council for Brand China National Brand Sina Finance China Enterprise Reform and

Committee and Guangdong Market Development Development Network Development Society

Economy Promotion Association

Product awards

"Wisdom Wind" air conditioner The GMV Enjoy series household

A number of German for the elderly was selected for central air conditioning was approved PV energy-storage multi- Gree Kinghome "Global Freshness"

Red Dot Awards in the the 2022 Promotion Catalog of as an innovative consumer product of connected unit won the The Guofeng cabinet air conditioner Refrigerator won the Health Star of

product design category Smart Health and Elderly Care "Upgraded and Innovative Consumer gold medal at the 2023 received the AWE2024 Gold AwardChina Refrigeration Expo Chinese Household AppliancesProducts and Services Product (Light Industry Tenth Batch)"

German Design National Ministry of Industry China National Light Organizing Committee of Gree Kinghome "Global Freshness" Household Appliances

Association and Information Industry Council China Refrigeration Expo Refrigerator won the Health Star of Chinese Household Appliances Magazine

092023 ESG Report

2023 Key Events or Timeline

February February March May

2023202320232023

Gree independently developed Gree and China Pingmei Shenma China National Light Industry Council announced the award-winning The 12th General Assembly of

" h i g h - e f f i c i e n c y h e a t p u m p Group jointly developed the "Key projects for the Science and Technology Award of China National Light the ISO/TC 86/SC 4 Refrigeration

technology based on floor heat Technology and Application of New Industry Council 2022 with Gree winning three awards. Among these Compressors Subcommittee was

storage" which was examined Refrigeration Complete Equipment for Gree's high-efficiency electrothermal dual-drive bacterium elimination held in Zhuhai and Ms. Dong

by the expert panel on-site and Heat Hazard Treatment in Deep Mine" technology and its application in air purifiers and the key technology Mingzhu Chairman of ISO/TC 86/SC

deemed to be at the "international project which was assessed by experts and industrialization of high-efficiency low-noise air conditioning motors 4 participated in and made a speech

leading" level of overall technical to have reached an internationally received the first prize. at the meeting.standard. leading technical level.August June June May

2023202320232023

Gree's "D-CTFP Quality Technical Innovation Cycle Method" was included Forbes released the 2023 "Global To help China's lychee industry achieve high-quality The "2023 Zhuhai · International

in the "Typical Cases of Quality Change and Innovation by Chief Quality 2000" list where Gree ranked development promote common prosperity and drive Standardization Conference" jointly

Officers in 2023" announced by the State Administration for Market 331st up 25 places from the rural revitalization Gree independently developed hos ted by Gree He fe i Genera l

Regulation and also included in "The Way of Quality Success – Typical previous year. specialized lychee preservation mobile equipment M a c h i n e r y R e s e a r c h I n s t i t u t e

Cases of Quality Change and Innovation by Chief Quality Officers in in over 40 days and held the first unit's launch and China Refrigeration and Air-

Guangdong Province" due to its advanced quality management concepts ceremony at Zhuhai Gree Lvkong Technology Co. Conditioning Industry Association was

methods experience and practice. Ltd. held in Zhuhai.November

September to December

2023 December 2023

2023

The achievement of Gree's "Independent Innovation and The 28th United Nations Climate Change Conference was held in Dubai UAE. Gree Electric Appliances Inc. of Zhuhai received the first conformity

Application of Key Technology for Intelligent Ventilation Air Ms. Dong Mingzhu Chairman of Gree attended the "China Corner" meeting on certificate and declaration issued by Intertek in several fields. Five

Conditioning System of Maglev Direct Expansion Metro December 3 and delivered a keynote speech showcasing the achievements PV air conditioning models were awarded the first IEC TS 62910

Station" was rated as "internationally leading" offering a new of China's manufacturing industry in green and low-carbon development and conformity certificate by Intertek indicating that these models have

solution for the construction of efficient environmental control sharing Gree's zero-carbon story in China's response to climate change. fully integrated low-voltage ride-through requirements into their

systems in China’s newly built subway stations. development and design processes.

102023 ESG Report

ESG Management

Stakeholder Communication

Gree actively carries out communication with various stakeholders collects the requirements and expectations of stakeholders through various channels and realizes common development with them.Major

stakeholder Government department

and regulatory authority Shareholder and investor Customer Partner Employee Society and the public Environment

Law-abiding and Law-abiding and compliant operation Customer management Adherence to business Occupational health and Responding to national Energy management

compliant operation Intellectual Property Protection Product quality and safety ethics safety strategies Water resource

Transparent disclosure Transparent disclosure Accessibility of products Industry exchange and Career training and Practicing social management

Improving corporate development development responsibility

governance Risk Management

and services Waste management

Key Issue Supply Chain Management Protection of employee rights Addressing climate change

Adherence to business Improving corporate governance and interests

ethics Adherence to business ethics Employee communication Green Office

Technological innovation and democratic management Developing circular

Employee care economy

Diversity and equal

opportunity

Inspection by leaders and General Meeting of Shareholders Customer satisfaction Selection assessment Training and induction E-mail Carrying out carbon

competent authorities Investor exchange meetings survey Procurement process training Tel footprint verification energy

Compliance patrols and conservation and emission

inspections Online performance briefing

E-mail and daily phone E-mail and suggestion box

communication Performance evaluation Company announcement reduction

Regular meetings Shenzhen Stock Exchange Easy

Regular meeting

Interaction Q&A Customer e-mail

Regular communication Social network platform Developing clean energy

with local government with business partners (e.g. Employee performance Communication representatives Investor Hotline Responding to customer e-mails meetings) evaluation

Company website Carrying out product carbon

complaints Social media footprint accountingand channel Forums conferences and Company research Employee ActivitiesCustomer visits Charitable donations and Cultivation of low-carbon seminars Telephone consultation voluntary services awareness of users

Daily policy E-mail Community activities

implementation Regular reports and information

disclosure on official website

112023 ESG Report

Materiality matrix Matrix of ESG Materiality Assessment Analysis for Gree 2023

In 2023 Gree conducted an ESG materiality assessment to effectively respond to the expectations

and demands of various stakeholders continuously improving the level of ESG management. During 打一体

this reporting period we orderly carried out the research on material issues based on the process of

"stakeholder communication—issue identification—issue evaluation—materiality confirmation". 15

1008

We maintained regular communication with investors customers 16 07 0222 18

Stakeholder government agencies and employees among other stakeholders. We 19

27112801

Communication recorded the issues and specific content of different stakeholders' concerns

09

141225240420

and responded to their demands. 05 03 2106

13

1726

Based on the "Guidelines for Self-regulatory Rules of Companies Listed

on the Shenzhen Stock Exchange" the United Nations' 17 Sustainable 23

Issue Development Goals (SDGs) "GRI Standards" mainstream ESG ratings

identification national policies industry benchmarking and the results of stakeholder

communications we identified 28 issues highly relevant to the Company. Importance to internal stakeholders

We sent out the "Survey Questionnaire on Material Issues

for 2023 Gree ESG Report" to various stakeholders to Governance Social Environment

Questionnaire gather their rankings of issue importance and suggestions

for improvement. 1 Law-abiding and 8 Occupational health and Product quality and Energy Issue compliant operation safety 15 safety 22 management

evaluation Intellectual Property Career training and Accessibility of Water resource

In 2023 we conducted interviews with nearly 30 internal 2 Protection 9 development 16 products and services 23 management

Interview departments on environmental social and corporate Transparent Protection of employee Industry exchange and Waste

communication governance issues listening extensively to their opinions 3 disclosure 10 rights and interests 17 development 24 management

and feedback. Employee communication

4 Risk Management 11 and democratic 18 Technological 25 Addressing climate

management innovation change

Based on the survey results from stakeholders we created a material issue 5 Protecting investors' Supply Chain rights and interests 12 Employee care 19 Management 26 Green Office

Substantive analysis matrix.Improving corporate Diversity and equal Responding to national Developing circular

confirmation Combining the Company's development strategy interview communications 6 governance 13 opportunity 20 strategies 27 economy

external inquiries and industry trends we confirmed the material issues.

7 Adherence to business ethics 14 Customer management 21

Practicing social

responsibility 28 Green product

12

Importance to external stakeholders01

Improving Governance

and Compliant Sound

Operations

Good corporate governance is an essential foundation for achieving

excellent operational performance and long-term sustainable

development for the Company. Enhancing corporate governance

not only safeguards the interests of all stakeholders but also helps

maximize company value. Gree follows its "Articles of Association"

continuously improves its governance system benchmarks against

excellent international peer practices and constantly improves its

corporate governance mechanism to drive the Company to create

sustainable value.Solidifying Corporate Governance 14

Improving Compliance and Risk Control System 17

Strengthening Investor Relations Management 18

Standardizing Business Ethical Behavior 20

Focusing on Information Security Protection 22

SDGs benchmarking2023 ESG Report

Solidifying Corporate Governance

Gree is committed to establishing an efficient and transparent governance structure. Based on the

"Company Law of the People's Republic of China" "Securities Law of the People's Republic of China"

"Code of Corporate Governance for Listed Companies" and other relevant laws regulations and

normative documents the Company has formulated and implemented a series of internal governance

systems such as the "Articles of Association" and "Procedural Rules for Shareholders' General

Meetings" and established a structure of General Meeting of Shareholders Board of Directors Board

of Supervisors and management layer to solidify the foundation of corporate governance and promote

efficient and sustainable development of the Company.Corporate Governance Structure Diagram

General Meeting of Shareholders

Elect Report Elect Report

Board of Directors Shareholders and General Meeting of

Formulate Supervise Shareholders

Establish Report

The Company strictly adheres to laws regulations normative documents and the provisions

Special Committee of the Board of of the "Articles of Association" and "Procedural Rules for Shareholders' General Meetings"

Directors and standardizes the convocation holding and voting procedures of the general meeting of

Audit Committee shareholders. It treats all shareholders equally especially ensuring the legal rights of minority

shareholders safeguarding shareholders' rights to information participation and voting on

Remuneration and Evaluation significant company matters and facilitating shareholder attendance at meetings to fully exercise

Committee their legal rights. After the proposal for general meeting of shareholders is procedurally reviewed

Nomination Committee the Meeting deliberates on the agenda items listed in the meeting notice.Supervise and guide Report

Implement Supervise During the reporting period the Company held 1 general meeting of shareholders

Business Management and deliberated 12 proposals.

14

Board of Supervisors

Report

Appoint supervisor guide

Formulate internal management systems and

management methods2023 ESG Report

Directors and Board of

Directors Name Position Held Gender Age

Date of Initial Education Professional

Appointment Background Ability

Dong Mingzhu Chairman and The Board of Directors is accountable to the general President Female 69 2012.05 Master Degree Industry expert

meeting of shareholders and strictly follows national Secretary of the

laws regulations and the provisions of the "Articles of Zhang Wei Party Committee Male 47 2019.01 Bachelor Degree Industry expert

Association". Leveraging their extensive experience and Director

the Board effectively oversees the Company's strategic

direction and key risks provides guidance to management Guo Shuzhan Director Male 67 2019.01 Associate Degree Industry expert

considers and approves major decisions supervises

business and evaluates company performance. The Zhang Jundu Director Male 63 2012.05 Associate Degree Industry expert

Company carries out the procedures for the selection

and appointment of directors and the management of Director Vice

their powers in compliance with the law focuses on the President and

diversity of the Board of Directors and seeks to enrich Deng Xiaobo Secretary of the Male 48 2020.12 Undergraduate Industry expert

the representativeness of the members of the Board of Board

Directors in terms of gender experience qualifications Independent

and professional backgrounds so as to provide more Liu Shuwei director Female 71 2019.01 Master Degree Financial expert

comprehensive and professional decision-making for the

development of the Company. Wang Xiaohua Independent director Male 62 2019.01 Master Degree Legal expert

Xing Ziwen Independent director Male 61 2019.01 Doctor Industry expert

As of the end of 2023 the Company's Board Zhang Qiusheng Independent director Male 56 2022.03 Doctor Financial expert

of Directors consisted of 9 directors

including five directors four independent

directors and 2 female directors. There are three specialized committees under the Board of Directors including the Remuneration and During the reporting period the Company held 4

Evaluation Committee the Nominating Committee meetings of the Audit Committee and meeting

and the Audit Committee with independent directors 2

During the reporting period the Company comprising over 50% of each professional committee. of the Remuneration and Evaluation Committee.held 6 board meetings and deliberated

26 proposals.

152023 ESG Report

Supervisors and Board of

Audit Committee Supervisors

Proposing the appointment or replacement of external audit firms;

Overseeing the Company's internal audit system and its implementation; The Board of Supervisors supervises the legality of the Company's financial

Managing communication between internal and external audits; operations and the performance of duties by directors and senior management

Reviewing the Company's financial information and its disclosure; safeguards the legitimate rights and interests of the Company and its

Examining the Company's internal control system; shareholders examines the Company's financial situation expresses opinions

on relevant major matters and is accountable to and reports to the General

Meeting of Shareholders in strict accordance with national laws regulations

and the "Articles of Association". The members of the Board of Supervisors of

Nomination Committee the Company were elected in accordance with relevant laws and regulations

and the Company's internal regulations conscientiously performed their duties

Advising the Board of Directors on its size and composition based on the by attending the general meetings of shareholders and attending the board

Company's business activities asset size and shareholding structure; meetings and fulfilled the duties of the Board of Supervisors in good faith

Researching and suggesting criteria and procedures for selecting directors and diligently and conscientiously.senior management;

Select qualified candidates of directors and senior management;

Reviewing candidates for directors and president and making recommendations;

As of the end of the reporting period the Board of Supervisors of

the Company consisted of 3 supervisors including 1 employee

Remuneration and Evaluation Committee representative supervisor.Assessing the performance criteria for directors and senior management and

providing suggestions;

Studying and reviewing the compensation policies and plans for directors and During the reporting period the Company held 5 meetings of

senior management.Board of Supervisors and deliberated 18 proposals.

162023 ESG Report

Improving Compliance and Risk Control System

Gree firmly believes that a mature internal control system can ensure the standardized operation and healthy development of the Company and safeguard the legitimate rights and interests of shareholders. The

Company has established and continuously improves an effective internal control management system regularly identifies risks faced by the Company and significantly enhances compliance awareness and major

risk control capabilities.Compliance Management Risk Control

The Company establishes an effectively operating internal Meanwhile the Company engages a third-party professional In order to clarify the Company's management responsibility for

control system in accordance with the "Company Law" and other organization to conduct self-assessment of the compliance the prevention and control of various risks and opportunities

laws regulations and provisions and continuously improves the and effectiveness of the Company's internal control system enhance the risk awareness of cadres and employees and

internal control system in accordance with the internal control every year and timely updates and improves the internal improve the Company's risk control capability Gree has

guidelines and the actual situation of the Company to ensure control system in accordance with the provisions of the "Basic formulated the "Measures for the Administration of Risks and

the effectiveness of the internal control system. The Company Specifications for Internal Control of Enterprises" and its Opportunities" which identifies monitors and evaluates internal

earnestly carries out internal control and compliance assessment accompanying guidelines taking into account the Company's and external environments related to the Company's purpose

work. The Board of Directors Audit Committee Board of internal and external environments changes in its internal and strategic direction and at the same time identifies and

Supervisors and operational management clearly define their organization and management requirements etc. and discloses evaluates relevant parties' expectations or requirements related

roles and responsibilities and connect the internal control work the financial reports issued by the annual auditor in the relevant to the Company's management systems of quality environment

of each unit with the Company's business processes so as to media to be reviewed and supervised by the relevant parties. occupational health and safety hazardous substances process

closely link the internal control work with daily operations and energy information security etc.realize the closed-loop operation of risk management work.

172023 ESG Report

Strengthening Investor Relations

Management

Gree values communication with investors and always follows the principles of compliance equality Shareholder Returns and Dividends

initiative honesty and trustworthiness. With reference to the "Guidelines No. 1 of the Shenzhen Stock

Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed on While the Company continues to promote its own sound development it has always placed

the Main Board" "Guidelines for Investor Relations Management of Listed Companies" and other an important position on rewarding its shareholders so that they can share the fruits of the

laws regulations and standardized documents the Company has formulated the "Investor Relations Company's development and promote the rational development of the capital market. Since its

Management System" and the "Measures for the Administration of Information Disclosure" to disclose the listing in 1996 the Company has accumulated CNY5.269 billion of equity financing and CNY142

relevant information of the Company in a comprehensive and timely manner through announcements billion of dividends including more than CNY110 billion of cash dividends and about CNY30

so as to ensure that the investors are able to fully understand the Company's operation status and billion of share repurchases. During the reporting period the amount of repurchased company

development prospects. shares was about CNY3 billion.Information Disclosure Protecting Investors' Rights and Interests

The Company strictly abides by the principles

of information disclosure fulfills its information

During the reporting period In order to better serve investors the Company has equipped a professional team to deal disclosure obligations truthfully accurately with investor relations related matters and proactively communicates with investors through

completely timely and fairly and continues to the Company released 55 various channels such as communication on the Easy Interaction platform general meeting of

deepen the institutionalization and standardization announcements to the public. shareholders performance briefings telephone communication and meeting communication

of its information disclosure work strengthen the to enable investors to better understand the Company's development strategy and current

disclosure of environmental social and corporate situation.governance information and continuously

enhance the transparency of the Company. including 8 periodic reports and Gree investor communication methods and activities

47 interim reports.

Information disclosure channel Information disclosure content

Conduct diversified investor Conduct regular performance Establish a regular

China Securities Securities Daily

Periodic reports: including annual interim and quarterly reports. communication activities briefings to answer investor investor communication

Journal

Shanghai Securities CNINFO

Interim reports: announcements of major events etc. and facilitate investor queries mechanism to ensure the

Other information required to be disclosed by laws and

News communication channels long-term smooth flow of

administrative regulations.Securities Times communication channels

182023 ESG Report

The Company attaches importance to the needs of small and medium-sized investors who wish to enhance their understanding of the

During the reporting period the Company: Company and communicate with the Company and actively participates in the activities carried out by investor protection organizations to

safeguard the legitimate rights and interests of investors.held 1 annual performance briefing

Case Actively promoting the participation of small and medium-sized shareholders in general meetings of shareholders

2 In June 2023 the Company held a general meeting of shareholders where the Company actively pursued online voting by providing a conducted performance roadshows clear and easy-to-use online voting platform and ensuring that all shareholders were free to access and use the platform. The Company

also invited a third-party law firm to monitor the voting to ensure its fairness and transparency. This facilitates the participation of small

and medium-sized investors in major corporate decisions and enhances the transparency and fairness of corporate governance.

1 According to statistics a total of 2340 small and medium-sized shareholders and shareholders' proxies participated in the on-site held investor open day meeting and online voting at the general meeting of shareholders representing a total of 1069862628 shares of the Company

with voting rights accounting for 19.0576% of the total number of shares of the Company with voting rights. Among them 2277

shareholders voted through the Internet representing a total of 716283439 shares of the Company with voting rights accounting for

12.7592% of the total number of shares of the Company with voting rights. The implementation of online registration and online voting

held 4 investor relations exchange meetings facilitates investors' participation in corporate decision-making enhances the interaction between investors and the Company and provides a strong guarantee for the improvement of corporate governance.answered 146 questions on the interactive

platform of the Shenzhen Stock Exchange At the same time the Company has established a comprehensive independent director system to effectively protect the rights and interests of

small and medium-sized investors playing the role of "participation in decision-making checks and balances and professional consultation".It carefully considers the motions and expresses independent opinions on the relevant motions and provides advice and suggestions for the

promotion of the Company's long-term and stable development.answered about 700 calls from investors

Case Carrying out the small and medium-sized investors' communication campaign of "Understanding My Listed Company - Entering the Blue Chips"

In August the Company participated in the series of activities of "Understanding My Listed Company - Entering the Blue Chips" led

the Shareholder Observation Mission which included individual investors to visit the headquarters of Gree Electric and had in-depth

exchanges with the Chairman the Secretary of the Board of Directors and the relevant technical personnel of Gree. The Chairman

of the Company took the initiative to answer questions on diversified development strategies and other issues of concern to investors

and interacted with the on-site audience strongly deepening communication with small and medium-sized investors and safeguarding

the rights and interests of small and medium-sized investors.

192023 ESG Report

Standardizing Business

Ethical Behavior Anti-corruption

In order to strengthen the control of business ethics issues and Gree has formulated the "Ten Provisions on Integrity in Practice" in

prevent and reduce the Company's risks Gree strictly follows accordance with the "Measures for Administration of Discipline Inspection

the relevant laws and regulations such as the "Company Law" and Supervision" and other systems clarified the Company's stance on

"Anti-monopoly Law" "Anti-Money Laundering Law" "Anti-Unfair conflict of interest issues in business provided a clear definition of specific

Competition Law" "Oversight Law" and the provisions of the related persons regulated the activities of specific related persons in terms of

"Articles of Association" and has formulated the "Measures for their hiring holding office as well as the Company's business dealings and

Administration of Discipline Inspection and Supervision" and other clarified the relevant management policies to effectively prevent the risk of

systems to prevent unethical business conduct such as bribery corruption of personnel and create a working environment of clean practice.bribe-taking fraud money laundering unfair competition and

conflicts of interest promoting a clean and ethical working style The Company regularly carries out integrity education including publishing

and adherence to business ethics. the "Integrity Briefing" and carrying out discipline education and study month

work covering all employees so as to comprehensively improve employees'

The Company has set up the Discipline Inspection and Supervision awareness of business ethics establish the concept of integrity and prevent

Office which is specifically responsible for carrying out the business ethics risks. At the same time all suppliers are required to comply

Company's discipline inspection and supervision management with the Company's business ethics and anti-corruption related systems in

work conducting integrity education preventing corruption risks order to achieve long-term sustainable and collaborative development of the

and implementing the investigation and handling of suspected supply chain.violations of the law. The Company reviews and updates this series

of business ethics practices from time to time.Case Actively carrying out the annual self-inspection of clean employment

At the beginning of 2023 Gree carried out its annual integrity self-

inspection. Senior management middle-level managers and key

personnel from various departments and branches filled out integrity

self-inspection forms self-inspecting and reporting on issues like

acceptance of gifts information disclosure and misuse of company

assets. Through the annual self-inspection Gree effectively guides all

employees to enhance the ideology of integrity practice the Company's

development philosophy and protect the healthy development of the

Company.

202023 ESG Report

Complaints and Reporting

In order to maintain the principles of "three opennesses and three stresses" of the Gree complaints and reporting management

enterprise Gree adheres to the principles of fairness and impartiality openness

and transparency and clear distinction between public and private interests to

carry out production and operation to ensure the smooth implementation of President's mailbox: The Company has established over 30 president's mailboxes in various

reporting work standardize the duties and content of information acceptance departments canteens gates and factories to facilitate real-time complaints and reports by

investigation and processing file management protection reward and punishment .com employees.of reporting work and develop the "Reporting Management Measures" combined

with the actual situation of the Company. The Measures clearly stipulate the Reporting

E-mail and hotline: The Company has designated the Enterprise Management Department

and the Discipline Inspection and Supervision Office to be responsible for complaints about

investigation and handling of reported incidents whistleblower rewards and channel work quality and integrity providing public reporting e-mail and hotlines.punishments investigator recusal and whistleblower protection mechanism to

ensure the effectiveness of the reporting work throughout the whole process and

safeguard the rights and interests of employees.Investigators with a potential conflict of interest in their specific investigative responsibilities

must explain to their supervising leaders and upon approval recuse themselves.Investigator

recusal

Fairness and

impartiality

Three principles of The Company mandates strict protection of the personal rights and other legal rights of the

equity whistleblowers; no one may retaliate against whistleblower or employees cooperating with

the investigation.The department handling reported incidents and its investigators shall not:

openness and clear distinction 1. Violate confidentiality requirements or disclose reporting information;

transparency between public and

private interests 2. Privately store detain alter forge replace conceal lose or destroy reporting materials;

3. Exceed their authority handle reporting materials without authorization or illicitly give

Three principles Whistleblower them to the reported individuals;

protection 4. Conceal falsely report or fail to report significant reporting information within the

prescribed timeframe causing severe consequences;

5. Use reporting materials for personal gain or provide convenience for retaliation against

the whistleblower;

Stress the truth to do Stress principles to do Stress dedication to make 6. Engage in other illegal or disciplinary violations.practical things good deeds great achievements

212023 ESG Report

Focusing on Information

Security Protection

In order to safeguard the confidentiality integrity and availability of the Company's

information assets Gree has formulated the "Measures for Administration of

Information Security" and other systems to standardize the flow management

for the exchange of various types of information internally and externally and

the requirements for the use and storage of such information in accordance with

relevant national laws and regulations so as to comprehensively and effectively

implement the information and data security. As of the end of 2023 the Company

has obtained the ISO27001 Information Security Management System Certificate.The Company actively carries out information security education specifies the first

responsible person and security administrator of each subsidiary and department

coordinates and manages all kinds of information security management work and

independently evaluates the Company's information security management methods

and information security control objectives control measures strategies etc. at

least once a year to ensure that the system is perfect and reasonable. When major

changes occur it is necessary to immediately organize the relevant units to carry

out the review work record the review situation follow up and rectify the problems

found in the review.As of the end of 2023 the Company has obtained

the ISO27001 Information Security

Management System Certificate.

2202

Green development

for the guardianship

of Earth

Gree adheres to the concept of "For the Clearer Sky and Greener

Earth" and always follows the principles of green and energy-

saving for innovative research development and manufacturing.The Company adheres to the energy policy of "rational use of

energy and improvement of energy efficiency" innovatively puts

forward the cyclic development model of "green design - green

manufacturing - green recycling" and vigorously invests in green

energy-saving and emission reduction technological reform projects

to contribute to the sustainable development of the industry and

the world.Deepening the Implementation of 24

Environmental Management

Promoting Green Development 25

Throughout the Life Cycle

Actively Implementing Green Actions 37

SDGs benchmarking2023 ESG Report

Deepening the Implementation of Moreover the Company has clarified the environmental protection responsibilities of administrative

leaders at all levels and various functional departments and implemented environmental objectives

Environmental Management and management measures by the persons and departments in charge to comprehensively

supervise manage inspect and resolve the Company's environmental protection issues.The Company conscientiously implements the national environmental protection guidelines policies Environmental protection responsibilities (partial)

and laws and regulations. Based on the requirements of national environmental protection laws and

regulations and considering the actual environmental situation of the Company it has developed

the "Measures for Administration of Environmental Protection" which clarifies the division of

environmental responsibilities among different units comprehensively implements the environmental

protection responsibility system and prevents environmental pollution incidents. Additionally in Vice President

response to changes and requirements in national policies the Company timely enhances the Chairman of the of the Company

environmental management standards and strictly enforces the latest environmental protection Company (manufacturing)

requirements to continuously deepen the implementation of environmental management.The Chairman is the primary Carry out the national guidelines policies laws and regulations

Environmental Management System responsible person for the on environmental protection take direct responsibility for the Company's environmental organization and management of the Company's environmental

protection work taking overall protection work and be responsible for the Company's

The Company adheres to the scientific development concept of "comprehensive coordinated and responsibility for it. environmental accidents.sustainable development" and has formulated various environmental management methods including

the "Measures for Administration of Corporate Environmental Protection Responsibility System" Establish and improve the Improve the Company's environmental protection management environmental protection organization enrich the full-time environmental professional

"Measures for Administration of 'Three Simultaneities' for Construction Projects" and "Hazard responsibility system organize management personnel and supervise them to carry out

Source and Environmental Factor Management Method". Each year it signs an "EHS Responsibility the formulation of environmental environmental protection management.Agreement" with various units to reinforce environmental responsibilities and ensure the effective protection regulations and

operation of the environmental protection system. The Company has obtained the ISO14001 emergency rescue plans for major Approve the project funds for environmental protection measures

environmental accidents and and environmental emergency rescue funds and ensure that the Environmental Management System Certificate.ensure the necessary investment funds for environmental protection and environmental emergency

in environmental protection funds. rescue funds are earmarked for specific purposes.Environmental Protection Management Structure of Gree

Set up the Company's Organize the development revision and review of the Company's

environmental protection internal environmental protection management rules and Chairman of the

management institutions equip regulations and organize the implementation.Company

environmental management Conscientiously implement environmental protection

personnel and approve administrative licensing and "three simultaneities" system for new

the planning and plans for

Vice President of the construction alteration and expansion projects.environmental protection work.Company (manufacturing) Regularly organize inspections and supervise the implementation

The Chairman is responsible of environmental work in the departments under his/her charge.for coordinating the Company's

environmental pollution prevention Organize the investigation and handling of environmental

Head of Each Department Head of Each Sub-factory Head of Each Subsidiary and control work. accidents.

242023 ESG Report

Environmental Emergency Protection Promoting Green Development Throughout

The Company has formulated the "Emergency Response Plan for Environmental

Emergencies" in accordance with relevant national laws and regulations and regularly the Life Cycle

organizes emergency response drills for environmental emergencies such as fire

and explosion chemical leakage excessive discharge of wastewater excessive Adhering to the concept of "For the Clearer Sky and Greener Earth" Gree is committed to the green management

discharge of waste gas and leakage of hazardous waste to enhance the Company's of the whole life cycle of the environment covering the utilization of resources green processes green products

environmental protection emergency response capability and to ensure that green factories waste management and emission management. The Company actively promotes green production

environmental emergencies are properly handled and dealt with in a proper manner. continuously optimizes resource utilization and process flow and is committed to creating environmentally friendly

green products building green factories and implementing strict waste treatment and emissions management to ensure

Gree actively carried out environmental that the entire production process complies with environmental protection standards and contributes to sustainable Case emergency drills development and environmental protection.In 2023 according to the environmental protection emergency drill plan

the Company and its subsidiaries has carried out emergency drills themed Resource Utilization

on "fire and explosion" "excessive discharge of waste gas" "excessive

discharge of wastewater" "chemical leakage" "leakage of hazardous Gree highly focuses on energy and resource conservation and is committed to promoting scientific and technological

waste" etc. Through the activities of emergency drills and exercises innovation and green energy-saving technology. Through the establishment and operation of the resource and energy

the Company continuously strengthens the employees' awareness of management system vigorously promoting the improvement of energy-saving and water-saving technology and

environmental safety risk prevention and control and their ability to deal continuously carrying out green energy-saving product design and R&D Gree has created a low-carbon and energy-

with them improves the Company's overall environmental safety risk saving enterprise with sustainable development.management level and safeguards the environment and safety of its

employees and local communities.In 2023 various units of the Company's headquarters conducted a total of

27 environmental emergency drills.

Special emergency drill for excessive wastewater discharge incident at Gree

252023 ESG Report

Energy management

The Company actively implements the national dual-carbon strategy formulates

the "Measures for Administration of Energy Resource Conservation" and other Case Gree actively utilizing clean energy with continuous construction of PV projects

systems in accordance with relevant laws and regulations and builds a perfect

and sound energy management system with reference to the ISO50001:2018

energy management system standard to vigorously promote the Company's In 2023 the Company built a new 6.8MWp distributed PV power generation project at Zhuhai Gree Lvkong Technology Co. Ltd.process of energy conservation consumption reduction and green with an annual power generation capacity of about 6.8 million kWh and an annual emission reduction of 3878 tons of carbon

development. As of the end of 2023 the Company has obtained the ISO50001 dioxide.Energy Management System Certificate.The Company practices the energy management concept of "a drop of water

a piece of paper". In order to reduce the consumption of fossil fuels and carbon

dioxide emissions it carries out a two-pronged carbon reduction program

vigorously develops PV power generation projects and actively promotes

energy-saving technological reforms to achieve the goal of comprehensive

reduction of energy consumption. In 2023 the Company's overall energy

consumption of CNY10000 output value decreased by 3.32% compared with

that of 2022.Improve the efficiency of energy utilization. In 2023 the Company carried out

335 energy-saving technological reform projects saving 75.806 million kWh of

electricity and 836000 cubic meters of natural gas and reducing carbon dioxide Distributed PV power generation project at Zhuhai Gree Lvkong Technology Co. Ltd.(equivalent) by 45042 tons.Increase the proportion of clean energy. In 2023 the Company utilized 572

million kWh of nuclear power and 28.06 million kWh of PV power generation Energy use of Gree

reducing carbon dioxide emissions by 16003 tons an increase of 9.8%

compared with 2022. Combined with Gree's self-developed titanate energy Index Unit 2023

storage cabinets for peak cut 160MWh of energy storage was put in with a

cumulative peak shifting of 72 million kWh of electricity. Total energy consumption Tons of standard coal 256892

Natural gas 10000m3 3341

Liquefied petroleum gas Ton 7012

The Company has continued to build PV power generation Purchased electricity 10000 kilowatt-hour 160278.47

projects over the years. As of the end of 2023 the

installed capacity of the Company's PV projects has Index Unit 2021 2022 2023

reached 54MW and the capacity of PV projects under PV power Clean energy generation 10000 kilowatt-hour 2360 2555 2806

construction is 60MW. consumption Nuclear power

consumption 10000 kilowatt-hour 0 0 57212.7

262023 ESG Report

Water resource management

Gree strictly abides by the requirements of national and local

laws and regulations actively carries out water conservation Case Sponge City Initiative: New Base

measures minimizes water intensity and effectively reduces

water consumption through water recycling. In March 2023 the new base construction of Gree was designed according to the urban sponge engineering design specifications

fully utilizing the geographical advantage of abundant rainfall in the project area. The overall landscaping of the plant incorporates the

rainwater storage function enhancing the factory's resilience to environmental changes and natural rain disasters while also promoting

the recycling of water resources.Water-saving enterprise certification

Sponge City Initiative: New Base

Water resource consumption of Gree in 2021-2023

Purchased municipal water (Unit:m3)

Case Three-tier water recycling

2021 10324508 In August 2023 the sheet metal spraying sub-factory constructed a concentrated water recycling system in the spraying workshop

which achieves 0 discharge of concentrated water and 100% water recycling in the spraying workshop through multi-layer recycling of

2022 9374763 water resources and saves 29000 tons of tap water annually after the implementation of the project reflecting the Company's concept

of assuming social responsibility and realizing the sustainable development of water resources.

202310191754

272023 ESG Report

Case Improving energy efficiency in the air Case Improving energy efficiency in the

Green Technology

conditioning machine room of Zhuhai air compression station of Zhuhai

headquarters headquarters The Company actively practices green economy and promotes

resource conservation. In the air conditioning production process

Dur ing the report ing per iod Gree implemented a Gree independently developed a constant pressure control it adopts green and environmentally friendly processes to replace

comprehensive energy efficiency improvement solution system for the air compression station which uses an traditional production methods. For instance it changed the heating

for the air conditioning machine room at its Zhuhai automatic adjustment and operation mode to achieve method for pipeline welding from traditional fossil fuel combustion

headquarters. This included seven technical improvement constant pressure control energy savings and reduced to green energy heating and ultrasonic vibration welding reducing

measures such as equipment replacement and optimization consumption. It also introduced high-efficiency energy- the use of fossil fuels and lowering carbon dioxide emissions.of layout design resulting in overall energy savings. Through saving equipment to significantly improve the energy The new processes also contribute to improving product quality

these improvements the energy efficiency of the machine efficiency of the air compression station and reduce enhancing the production workshop environment and maintaining

room increased from 3.5 to over 5.0 saving approximately electricity consumption. This technical improvement project a leading position in the industry.

1.57 million kilowatt-hours annually and reducing carbon saves 6.77 million kilowatt-hours of electricity annually and

dioxide emissions by about 895 tons. reducing carbon dioxide emissions by about 3860 tons. Case The ultrasonic sealing technology for air conditioners

In January 2023 the Company changed the sealing process

of process tubes in the air conditioning production process

from the traditional flame brazing process to the ultrasonic

sealing process and changed fossil fuels to environmentally

friendly green electricity reducing the use of liquefied

petroleum gas (LPG) and natural gas and decreasing

carbon dioxide emissions.During the reporting period the Zhuhai and Wuhu bases of

the Company collectively reduced carbon dioxide emissions

by approximately 400 tons and reduced copper pipe

materials by about 363.18 tons.Improving energy efficiency in the air conditioning machine room of Improving energy efficiency in the air compression station of Zhuhai Ultrasonic sealing green technology of Gree

Zhuhai headquarters headquarters

282023 ESG Report

Case Creating a smart factory with RFID information technology Case Development of efficient energy-saving technology

In April 2023 as the core backbone platform of the production management of the assembly The Company has developed bidirectional control frequency technology for power feeding

sub-factory the RFID information system of the assembly sub-factory through the use of RFID load and frequency converter based on the simulation test of large power frequency converter

technology configures the corresponding hardware in the key positions of the production line temperature adjustment. Compared with the traditional motor towing + resistance load mode

and effectively integrates with enterprise's MES and BOM systems to provide various information this technology has changed the pure energy-based power consumption.services for assembly production eliminate the manual data scanning and collection operation

and realize the automation digitization and informatization of the smart factory enabling

comprehensive product lifecycle control. Real-time bi-directional frequency control full-load operation at the optimal operating point

with feedback efficiency of up to 92%

Master Control

Center

Online Test

System

Power grid

High power frequency converter Energy-fed load

Running

Test

High-efficiency and energy-saving bidirectional frequency control technology of Gree

Reader Writes Data

Currently this technology is being used normally at the Company's

RF Scanning Equipment

headquarters in Zhuhai saving 315560KW·H of electricity annually

Process Board First Filling Secondary Filling equivalent to reducing carbon emissions by 179.96 tons per year.RFID information system

The assembly sub-factory achieved paperless management in the production The "High-efficiency PM synchronous frequency Various technologies including permanent

process saving a significant amount of paper and ink consumables with the entire conversion centrifugal ice storage dual-mode magnet-assisted reluctance motors technology

group saving approximately CNY3 million in consumables annually. unit" has been selected for inclusion in the air conditioning AI energy-saving technology and National Catalog of Advanced Green and Low- high-efficiency evaporative cooling chillers were

carbon Technology Achievement selected for the 2023 Energy-saving Technology

and Equipment Catalogue of Guangdong Province

29

Electronic Label2023 ESG Report

Green Product

As a globally renowned air conditioning brand Gree undertakes

the responsibility of addressing high energy consumption and As of the end of 2023 the company has conducted carbon footprint certification for multiple products

high emissions in air conditioning. The Company continues to Carbon Footprint Certification and obtained carbon footprint certificates.develop high-efficiency and energy-saving products through

research and development to reduce fossil fuel emissions and

achieve resource conservation and environmental protection.Gree Electric Appliances vigorously develops green energy-

related technologies and products. As of the end of January

2024 Gree has 44 international leading technologies of which

41 are related to green energy. These technologies will continue

to provide technical support for promoting comprehensive

development of the green economy and achieving the "dual-

carbon" goal.Moreover to further accelerate the achievement of the "dual- Examples of certificates

carbon" goal Gree made a long-term depth layout of new

energy industry and added new business areas such as

lithium-ion batteries new energy commercial vehicles and Case Research and application of key technology for low-carbon dynamic operation of inverter air special vehicles thus establishing an integrated new energy conditioner

industry chain. The combination of core technologies such as

Gree Titanium's batteries and Gree's multi-dimensional low- In response to the lack of a method for evaluating the dynamic operating efficiency

carbon technologies such as "zero carbon source" of Gree of air conditioners and the uneven actual energy-saving effects Gree has

subsidiaries helps to increase the speed of green transformation developed the "Key Technology for Low-Carbon Dynamic Operation of Inverter

in production and lifestyle fully leveraging overall resource Air Conditioner". This includes the invention of a dynamic efficiency optimization

advantages. control technology of air conditioners based on AI algorithms achieving optimal

Gree-Cosmos won the "Green Low dynamic operation of air conditioners; the invention of a room load adaptive

Carbon Award" in the Grand Final of the technology based on neural network self-learning realizing rapid temperature

4th Smart Appliance Application Scenario control for comfort and energy saving; and the development of an AI chip

Development Competition highly applicable to dynamic energy saving of air conditioners establishing a dynamic energy-saving hardware platform to meet the computational needs of

air conditioners. According to third-party testing air conditioners equipped with

'Key Technology for Low-Carbon Dynamic Operation of Variable Frequency Air

Conditioners' have achieved a dynamic energy efficiency improvement of over High-efficiency and low-carbon

15.8% annually and a reduction in annual electricity consumption by more than inverter air conditioning product

13.6%. The project results have reached an "internationally advanced" level.

302023 ESG Report

Case Central air conditioning assisting Shenzhen Metro Line 12 in energy saving and emission Case

Efficient heat pump technology

reduction based on floor heat storage

Shenzhen Metro Line 12 adopted Gree's all-working-condition high-efficiency The existing heat pump floor heating systems in the market

frequency conversion equipment. Through BIM technology deepened design exhibit significant thermal inertia leading to the heat pumps'

was conducted for equipment selection equipment room layout system inability to respond timely to changes in building heat load

pipelines and energy-saving control achieving prefabrication of pipeline resulting in mismatches between supply and demand of floor

factories and on-site assembly construction at installation sites reducing heating and significant energy wastage. Additionally there are

pipeline resistance achieving zero material consumption and zero loss. industry challenges such as low actual operating efficiency of air-

According to the data the average comprehensive refrigeration efficiency of source heat pumps and significant efficiency degradation during

the refrigeration room is above 5.0 per year and the average comprehensive frosting periods. Gree has optimized the operation time and

refrigeration efficiency of the air conditioning system is above 3.0 per year. It is heating capacity of the heat pump units based on the thermal

estimated that it can save 17.36 million kWh of electricity for Shenzhen Metro storage capacity of building floors and future outdoor conditions

Line 12 per year reducing carbon emissions by 13636 tons. planning both system energy and efficiency simultaneously

achieving an overall optimization of energy supply-demand

match and efficiency. Tested by national authoritative

institutions the new generation of heat pump floor heating

Reducing carbon emissions by 13636 tons Air conditioning unit in Shenzhen Metro units equipped with this technology have significantly reduced

energy consumption during continuous 24-hour operation

saving more than 32% electricity compared to traditional floor

heating; indoor temperature fluctuations are reduced by more

than 40% compared to traditional floor heating; under severe

frosting conditions the operating efficiency is improved by 12%

Case Saudi PV energy-storage air conditioning application project compared to traditional heat pump units. The project results

have reached an "internationally leading" level.With abundant sunlight and high demand for air conditioners

Gree's "Zero Carbon Source" PV energy-storage air

conditioning system can fully utilize sunlight resources to meet

cooling needs. At the Saudi Marsha factory over 100 PV multi-

unit systems were installed with a PV installed capacity of 850

kWp. The system integrates clean PV power generation safe

energy storage regulation efficient air conditioning electricity

Local energy-saving Cloud energy-saving

computation based on management based on

usage and intelligent system power management achieving real-time data historical dataAI chip Cloud server

integrated complementary functions and multi-dimensional Cloud server Data acquisition Policy update Data packet

Heat pump unit Base station

energy saving and emission reduction. Meteorological dataData feedback

Policy upgrade package Policy optimization

Local Cloud

Saudi model project Efficient heat pump technology based on floor heat storage

312023 ESG Report

Green Factory

Gree actively engages in green initiatives related to environmental

protection energy conservation low carbon and emission reduction

leading in the field of green development. Starting from the Company's

environmental actions Gree adheres to a strategy of balancing

environmental protection with production continuously optimizes clean

production selects green raw materials enhances product energy

efficiency uses green packaging and optimizes production processes

to establish a green supply chain management system.All subsidiaries of the Company actively pursue green factory

certifications. As of the end of 2023 the Company has obtained a

total of 16 green factory certifications including 9 national-level green

factory certifications 4 provincial-level green factory certifications and 3

municipal-level green factory certifications.List of green factories of Gree

Company Name Award Level Award Date Company Name Award Level Award Date

As of the end of 2023 the Company has Gree (Luoyang) Electric National Level 2023 Gree (Wuhu) Electric Appliances Provincial Level 2020

Appliances Co. Ltd. Provincial Level 2023 Co. Ltd. Municipal Level 2019

obtained a total of 16 green factory Gree TOSOT (Suqian) Home Provincial Level 2023 Shijiazhuang Green Resources Appliances Co. Ltd. Recycling Co. Ltd. National Level 2019

certifications including 9 national-level green Gree (Nanjing) Electric Gree Changsha HVAC Equipment National Level 2018

Appliances Co. Ltd. Provincial Level 2023 Co. Ltd.factory certifications 4 provincial-level green Gree (Chongqing) Electric Zhuhai Kaibang Motor National Level 2022 Manufacture Co. Ltd. National Level 2021Appliances Co. Ltd.factory certifications and 3 municipal-level Gree (Hangzhou) Electric Gree (Zhengzhou) Electric Municipal Level 2022 Appliances Co. Ltd. National Level 2019Appliances Co. Ltd.green factory certifications Zhuhai Landa Compressor Co.Ltd. National Level 2020 Gree (Shijiazhuang) Electric

National Level 2022

Appliances Co. Ltd.Tianjin Green Resources Provincial Level 2020

Recycling Co. Ltd Municipal Level 2020

Gree Altairnano New Energy Inc. National Level 2019

322023 ESG Report

Waste Recycling Electronic waste recycling achievements of Gree

Total amount of electronic waste recycled* Disposal of waste electrical and electronic

In electronic waste management Gree actively responds to national calls implements (Unit:Kg) products(Unit:10000 units/sets)

responsibilities for recycling old appliances integrates social recycling resources for reuse and

contributes to green and low-carbon development. The Company has independently proposed a

circular development model of "green design—green manufacturing—green recycling" to ensure 2021 4903.32 2021 649

the entire industry chain is green and efficient. Since 2010 Gree has established six recycling

resource bases in Changsha Zhengzhou Shijiazhuang Wuhu Tianjin and Zhuhai mainly 2022 2744.42 2022 670

engaged in the recycling and processing of waste electronic products scrap cars waste printed

circuit boards and deep processing of waste plastics. 2023 8226.06 2023 995

Electronic waste recycling management of Gree

Conversion of recycled copper iron aluminum and plastics (Unit:10000 tons)

Type of All products and brands are eligible for collection and recycling

recycled

product (including those not manufactured by the company) 2021 8.93

20228.3

Recycling Changsha Zhengzhou Shijiazhuang Wuhu Tianjin and Zhuhai

location all of which are the Company's main operating locations 2023 15.34

Consumers can make an appointment through the website submit the Note*: The amount of electronic waste recycled is the electronic waste generated by the Company itself.Consumer

recycling relevant information to obtain the price of recycling and the staff will

cost provide door-to-door service

Set up recycling points mail recycling door-to-door recycling As of the end of 2023 Green Renewable Resources Recycling Co. Ltd. had cumulatively Recycling

method and large-scale sorting and recycling centers processed over 56.64 million units/sets of various waste electrical and electronic

products saving an estimated 2.402 billion kilowatt-hours of energy 3.8219

Most of the Company's recycling is done by its own facilities and the

Recycling million cubic meters of water reducing carbon dioxide emissions by 876100

facilities/ rest of the waste is recycled by designated suppliers on which the

suppliers Company carries out regular reviews and validations to ensure their tons (446 million cubic meters) and effectively avoiding environmental harm caused by

effectiveness with the supplier review rate reaching 100%. discarded appliances.

332023 ESG Report

In recent years Gree has continuously carried out company-level greenhouse gas emission inventories

Case Cash for Old Appliances Program by Gree Electric Appliances and implemented carbon reduction measures including actively developing PV power generation

continuously investing in energy-saving technological renovations and deepening the cyclic treatment of

Gree has established a long-lasting green recycling mechanism regenerated resources effectively reducing the total carbon emissions of the Company.creating the reverse logistics recycling platform for used household Greenhouse gas emissions of Gree in 2021-2023

appliances named 'Mingzhu Green Loop Recycling.' Utilizing an

'Internet + Recycling' approach the platform offers consumers Index Unit 2021 2022 2023

professional and convenient services for appliance trade-ins and

recycling. Bookings can be easily made with one-click through Direct (scope 1) greenhouse gas

emission Ton of CO2 equivalent 836414 709422 726654 the WeChat Mini Program where users can submit relevant

information to receive a recycling quote followed by doorstep

service from staff. Through vigorous online and offline promotion Indirect (scope 2) greenhouse gas emission Ton of CO2 equivalent 830758 740658 587784

the platform has enhanced the accessibility of appliance recycling

for consumers significantly advancing the management and Ton of CO2 equivalent/

recycling process of electronic waste and notably driving the Emission intensity CNY10000 revenue 0.088741 0.076729 0.064113

development of electronic waste management in the home

appliance industry.Gree waste household appliances

recycling platform Carbon reduction approach and corresponding carbon reduction amount of Gree in

Emission Management Energy saving and carbon Carbon reduction

reduction method Unit 2021 2022 2023 Total amount (2021-2023)

Gree strictly complies with environmental protection laws and regulations and adheres to the ISO

14001 Environmental Management System standards. It has established an internal system for the PV Ton of CO2 13459 14571 16003 44033

management of emissions and waste pollutants and conducted systematic environmental protection equivalent

management to ensure that all pollutant emissions from the Company meet environmental protection

Nuclear power Ton of COstandards. 2equivalent - - 326284 326284

Greenhouse gas emissions Green technology (energy-saving Ton of CO2

technical transformation) equivalent 39164 4520 45042 88726

Gree actively responds to the national "dual carbon" strategy. As a leader in domestic "PV energy-

storage" and "zero carbon source" air-conditioning technologies with the vision of "For the Clearer Sky Resource recycling (electronic Ton 100971 93997 179502 374470

and Greener Earth" Gree consistently practices the development philosophy that "lucid waters and lush waste treatment)

mountains are invaluable assets" and is committed to promoting clean and low-carbon energy use in

production and operations creating a healthy and green life for consumers and society. Gree vigorously Note: 1. The carbon dioxide emissions factor of power is the 2022 annual national grid average carbon emission factor

promotes the Company's green development from the multiple aspects actively addressing climate of 0.5703 tCO2 / MWh released by MEE (Ministry of Ecology and Environment). 2. The data accounting scope includes

change. the Company headquarters and all its branches and subsidiaries.

342023 ESG Report

Case The 28th United Nations Climate Change Conference Held | Dong Mingzhu narrated Gree's

Waste gas emission

zero-carbon story The main air pollutants from Gree include particulate matter

From November 30 to December 12 2023 the nitrogen oxides sulfur dioxide VOCs etc. The Company manages

28th Conference of the Parties to the "United and controls these emissions from the source collection process

Nations Framework Convention on Climate control and final treatment and configures facilities including paint

Change" was officially held in Dubai UAE. During spraying waste gas treatment system condenser/evaporator drying

the Conference the Chinese delegation held waste gas treatment system and spraying waste gas treatment

the "China Corner" series of events in Expo City system to ensure that the waste gas emissions meet standards.Dubai. Dong Mingzhu Chairman and President The Company strictly follows the requirements of the pollutant

of Gree attended the meeting as a representative discharge permit develops testing plans and entrusts professional

of enterprises from Guangdong on December third parties to monitor these pollutants with all results complying

3rd and delivered a keynote speech showcasing with emission standards.

the achievements of China's manufacturing

industry in green and low-carbon development

and sharing Gree's zero-carbon story in China's Case Gree upgraded and transformed

response to climate change. the waste gas treatment equipment

Gree continuously updates its environmental control

equipment and adopts efficient management technologies

such as regenerative combustion and catalytic combustion

for standard enhancement modifications. For example

regenerative combustion technology is used to manage the

condenser/evaporator drying waste gas further enhancing

management efficiency and reducing emissions of pollutants.Case Gree implemented a green logistics system

While vigorously promoting the development of green products Gree

places great emphasis on energy-saving and carbon reduction during

transportation creates a green logistics system and comprehensively

initiates the electrification upgrade of vehicles. By the end of the

reporting period there were 881 electric forklifts and 272 diesel forklifts

totaling 1153 units with electric forklifts accounting for 76.4% as well as

34 diesel buses and 482 electric buses totaling 516 units with electric

buses accounting for 93.4%.Waste gas treatment equipment

352023 ESG Report

Wastewater discharge Solid waste

The main pollutants in the Company's production wastewater include The solid waste at Gree is mainly categorized into general industrial solid waste hazardous waste and household garbage. The

chemical oxygen demand ammonia nitrogen and total nitrogen. Company has formulated relevant management methods in accordance with national laws and regulations carried out targeted

The Company has a dedicated wastewater treatment station to treatment methods according to different types of waste disposed of waste legally and in compliance with regulations and

process production wastewater which is discharged after meeting maximized the recycling rate of waste. Additionally the Company actively researched and promoted the reduction harmlessness

the standards. Gree entrusts qualified third-party units to monitor and resourcefulness of hazardous wastes and carried out projects such as sludge reduction container reuse and centralized oil

the wastewater pollutants and all monitoring results comply with the supply to reduce the generation of hazardous waste from the source.emission standards. Additionally the Company actively improves

spray production processes by upgrading from phosphating to

ceramic processes thus eliminating the generation of phosphates

from the source. Waste types and treatment methods of Gree

Case Gree reduced solid wastes from the source

Case Gree actively carrying out solid waste Hazardous wastereduction work In order to reduce the overall generation of solid waste the

Company improved the precision of the molds used in the

Gree is proactive in reducing solid waste such as the sludge Collect store and transport in accordance with production of injection molded parts at the design stage

reduction project at the wastewater station which uses national laws and regulations and entrust units so that the surface burrs of the final molded parts can be

efficient heat pump technology for low-temperature drying qualified in hazardous waste treatment to carry reduced thus reducing the solid waste generated from

equipment. This has reduced the moisture content of the out legal disposal disposal.sludge from 70% before drying to 12% after drying effectively

reducing the amount of waste sludge disposed of.General waste

After sorting in the plant it is handed over to

resource recycling manufacturers for recycling

and disposal

Domestic waste

Transfer to designated sanitation recycling points

for disposal by the sanitation department

Injection molding parts after upgrading

Wastewater treatment equipment

362023 ESG Report

Actively Implementing Green Actions Environmental Protection Training

To further promote the Company's green and sustainable development Gree has progressively The Company actively carries out environmental protection training empowers employees with

advanced green financial projects on the foundation of whole lifecycle green management. This the concept of green development and enhances their knowledge of environmental protection and

approach aims to secure more funding to support sustainable development projects focused on risk resistance. The Company provides basic environmental protection knowledge training for new

environmental protection and energy conservation continuously driving the Company towards a employees upon their entry; while for current employees the Company adopts a multi-tiered training

transformation in green and sustainable development. Meanwhile for many years the Company model which first provides special training for the person in charge of environmental protection of

has actively conducted environmental training to enhance employees' awareness and professional each subsidiary or factory who then train the employees of their respective subsidiaries or factory

capabilities through diverse environmental cultural education and construction create a green areas. The training content primarily focuses on environmental laws and regulations as well as typical

corporate atmosphere and achieve a virtuous cycle between economic growth and ecological societal cases.balance.Green Finance

To advance the development of the green economy during the reporting period Gree issued its first

tranche of green ultra-short-term financing bonds. These green bonds amounting to CNY900 million

were allocated 100% to the manufacture of energy-efficient air conditioners with top-level energy

efficiency.First tranche of green ultra-short-term financing bonds of Gree in 2023

Bond amount CNY900 million Issuance date March 27 2023

Project operation The project has now been completed and officially put into operation

and a total of 6 lines 3 domestically and 3 internationally have been Gree carried out diversified environmental protection training

constructed according to the project plan.Environmental

protection measures All environmental facilities involved in the project are fully equipped and

of the project functioning properly.Use of funds raised The amount issued for this period's ultra-short-term financing bonds During the reporting period the Company conducted 79 environmental protection

is CNY900 million. As of October 2023 it has been fully utilized in the

production of high-efficiency and energy-saving household appliances trainings for different employee groups covering 4786 employees.specifically for energy-efficient air conditioners.

3703

Intelligent Manufacturing

and Persistent

Technological Innovation

Gree consistently upholds the philosophy that "innovation is the

primary productive force" and is committed to independently nurturing

talent deeply cultivating core technologies and steadfastly pursuing a

path of independent innovative development. In fields such as product

innovation consumer upgrading and intelligent manufacturing the

Company continually contributes value to consumers society and the

nation.Improving the Innovative R&D System 39

Leading the Path to Digital and Intelligent 43

Transformation

Creating A Better Life with Technology 44

SDGs benchmarking2023 ESG Report

Improving the Innovative R&D System

Gree believes that outstanding product innovation is driven by a robust R&D system. By creating a self-transcendent innovation culture Maglev direct-expansion intelligent

building a high-level and highly integrated R&D platform and implementing innovation incentives and IP protection the Company is able to Case ventilation air conditioning system for

continuously lead and compete at the product and technological level and maintain sustainable competitiveness. subway stations

All air conditioning environmental control systems in Luoyang

R&D Concept and Achievements subway adopt Gree's independently developed maglev direct-expansion intelligent ventilation air conditioning system. The

large and small systems feature independent cooling sources

Gree insists on "independent R&D of core technologies" and adheres to the principle of "investing on demand without setting a ceiling". and single-sided air delivery for each unit. Taking the Citizen's

The Company has established a multi-level and high-standard R&D platform system based on national-level scientific research platforms Home Station as an example during the cooling season (July 25

and formed a technology innovation system that is enterprise-led market-oriented and integrates industry academy and research. The - September 20) the total refrigeration capacity of the system is

innovation chain drives the value chain and the value chain supports the innovation chain. 143550 kWh the total power consumption is 23800 kWh the

energy efficiency of cooling station in the machine room is 7.25

As of the end of the reporting period Gree has developed 16 research institutes 152 research institutions 1411 laboratories and one and the efficiency of the environmental control system reaches

academician workstation (motor and control) around the new energy environment intelligent equipment refrigeration freezing washing 6.03. This project is the first in the country where the installed

and other technologies and owns a national key laboratory a national engineering technology research center a national industrial design cooling station capacity is less than 500RT and the energy

center and a nationally recognized enterprise technology center. Furthermore the Company has become a research and comment efficiency ratio of the cooling machine room exceeds 7.0. The

base for refrigeration equipment of the National Notification & Enquiry Center and a national standard verification point (energy saving of project outcomes have reached an "internationally leading" level.refrigeration equipment).The Company possesses 44 "internationally leading" technologies

and has cumulatively won 2 National Science and Technology Progress

Awards 2 National Technological Invention Awards 3 China Patent

Gold Awards 3 China Appearance Design Gold Awards 14 Geneva

Invention Exhibition Gold Awards and 10 Nuremberg Invention

Exhibition Gold Awards.Gree maglev direct-expansion intelligent ventilation air conditioning

system for subway stations

392023 ESG Report

Case 120°C+ industrial large-capacity high-efficiency and high- Case COP7.0+ Dual-stage PM inverter screw chiller

temperature centrifugal heat pump

Heat pump is the best way to convert electricity into heat efficiently and it also meets the The Company broke through the technical bottleneck of the chiller in the small and medium cooling

needs of the development of end-use energy electrification. The Company has independently capacity segment and pioneered a dual-stage PM inverter water-cooled screw chiller with an energy

developed three major innovative technologies: a 120°C+ high-speed direct-drive high- efficiency level exceeding 7.0. This was the first unit that applies the dual-stage screw compressor

temperature and heat-pump centrifugal compressor a 60K+ temperature rise dual-compressor technology to the water-cooled chiller. It features interstage air supplementation to enhance system

series connection and a multi-stage compression air-supplementing efficient industrial heat energy efficiency and is equipped with a new high-efficiency rotor profile with small pressure ratio

pump unit. It has also developed a low-carbon refrigerant R1233zd(E) based 120°C+ industrial isomeric tooth and constant volume and a position-free identification and accurate adaptive control

large capacity high-efficiency and high-temperature centrifugal heat pump characterized by system of two-stage pressure ratio to significantly enhance full-operational efficiency. The unit with

high temperature high efficiency low carbon emission large capacity and high temperature a single compressor head of 180RT achieves a nominal cooling performance coefficient (COP)

rise. Compared to traditional industrial boilers it significantly enhances energy conservation of 7.22 an integrated part-load performance coefficient (IPLV) of 10.1 according to GB standards

and carbon reduction meeting the demands in food pharmaceuticals distillation dyeing and and IPLV of 12.01 according to ARI standards surpassing the national Level 1 energy efficiency

other industries supporting low-carbon energy development. This heat pump unit was tested standard by 34.7% the highest level in the industry for maglev system by 14.5% and the highest

by the third party with a heating capacity of 9114 kW at a 60K temperature rise and a 120°C level in the industry for inverter screw system by 11.6%. The energy-saving effects are significant

condensing temperature achieving a heating COP of 4.36 W/W. At a 65K temperature rise the making it widely applicable in various fields such as public buildings rail transportation and energy

condensing temperature can reach up to 130°C with a maximum capacity of 10 MW reaching renovation. The project outcomes have reached an "internationally leading" level.an "internationally leading" level.

120°C+ industrial large-capacity high-efficiency and high-temperature centrifugal heat pump COP7.0+ Dual-stage PM inverter screw chiller

402023 ESG Report

Scientific Research Communication

and Cooperatio

Through multi-level and multi-dimensional collaborations with over ten

domestic and international universities and research institutions such

as Tsinghua University Xi'an Jiaotong University and the International

Energy Agency Gree actively explores new mechanisms for integrated

development in directions such as system energy saving and high-

efficiency heat exchange. This continuously enhances the project's

collaborative innovation capacity and accelerates the pace of results

transformation.Case Research and application of key Research Incentive Case Gree clinched two gold awards at the Geneva technology for fruit vegetable and meat International Exhibition of Inventions

preservation in household refrigerator Mechanism

In May 2023 at one of the top three international invention exhibitions the

Addressing the challenges of preserving fruits and vegetables To fully leverage the enthusiasm and creativity of Geneva International Exhibition of Inventions Gree successfully won two

Gree started research from improving the average humidity and the extensive scientific and management personnel gold awards one silver award and one bronze award. As a "permanent

reducing humidity fluctuations and developed a fruit and vegetable and to promote continuous breakthroughs in core guest" of the exhibition the Company has won 14 gold invention awards.preservation technology based on a self-balancing high-permeability technological areas Gree based on the national

membrane and air-source humidification. This technology effectively guidance for scientific and technological awards One of the gold awards was granted for the continuous heating high-

solves the technical challenges of consistently establishing and and considering the actual circumstances of the efficiency thermal gas defrosting technology of the air source heat pump

maintaining high humidity in complex storage scenarios. The Company has formulated the "Measures for which significantly improved the defrosting efficiency shortened the

measured humidity reaches 95% with stable control. Data shows Administration of Scientific and Technological defrosting time broke through the traditional bottleneck of indoor heat

that the measured supercooling degree reaches 4.2°C significantly Progress Award". Each year high-level incentives absorption during air conditioner defrosting and achieved simultaneous

reducing the juice loss and drying rate of meat. Moreover the are awarded to units and individuals who achieve outdoor defrosting and indoor heating keeping the indoors warm and

Company has developed a super-freezing storage technology for outstanding results in the field of technological comfortable.meat based on a wide-frequency fully-enclosed piston compressor innovation. During this reporting period 210 award-

addressing the rapid decay of volumetric efficiency and reliability winning projects were selected covering 48 units Another gold award was granted to the high-efficiency ambient

issues under ultra-high frequency conditions of and over 2300 individuals including two top temperature catalytic de-formaldehyde air purifier equipped with a new

existing refrigerator compressors. The R600a awards. generation of formaldehyde decomposition technology. By building an

fully-enclosed piston compressor can operate active oxygen catalytic composite de-formaldehyde network it completely

at a maximum frequency of 120Hz allowing oxidizes formaldehyde into carbon dioxide and water with a cumulative

the refrigerator to run stably at -38°C for a long purification volume of up to 10000mg and paired with an "ultrafiltration"

term. The project outcomes have reached an During this reporting period 210 composite filter achieving sustained high-efficiency formaldehyde

"internationally leading" level. removal.award-winning projects were selected

412023 ESG Report

IP Protection

Gree has formulated an IP strategy aligned with the Company's development vision After years of practice Gree has established an IP management system covering the entire product lifecycle

planning IP work from the height of the Company's business strategy making full embedding IP management in all stages from material procurement product R&D to sales. This ensures the legal

use of IP information resources and combining creation application protection and monopoly of self-innovated technologies and stringent risk control.management of IP to promote corporate technology and management innovation. This

has enabled the Company to achieve and maintain a competitive advantage in the Lifecycle IP management system of Gree

market leading industry technology trends.The Company always adheres to a quality-first patent application strategy ensuring Business Pre-research Design Procurement Production Sales After-sales

patent quality through pre-application patent search quality checks in-application activities

document quality checks and post-application review response quality checks. This

strict quality control ensures the market value of the company's patents. IP Infringement of Repeated inadequately Material Equipment Improper use management of promotional R&D protected infringement infringement Quality risks

risks product materials

As of March 2024 Gree IP control Project search Patent layout Material Equipment and patent avoidance infringement risk infringement risk Compliance Solving quality

measures analysis design verification verification Review problems

has applied for a total of 119842 patents domestically and internationally

The Company has established an industry-leading full-process IP management system platform which integrates

including 64539 invention patents and 21148 granted invention a patent value assessment system enterprise product patent navigation and patent operation processes and

effectively interfaces with project management platforms PDM management platforms and patent agency

patents. platforms. This aids in shortening the patent application cycle and enhancing the efficiency of patent work.The Company has won 77 Chinese Patent Awards including three gold awards for In addition Gree places high importance on the construction of a high-quality IP personnel team. The Company has a dedicated IP department with over 800 IP staff including more than 80 full-time patent administrators with

inventions and three gold awards for designs. patent agent or legal professional qualifications. The quantity and overall quality of personnel lead among Chinese

enterprises. The Company continually enhances the theoretical knowledge and practical skills of the patent talent

It has ranked among the top ten in invention grant volume nationwide for eight team through internal training expert training external commissioned training and mock courts among other

consecutive years consistently leading the household appliance industry. multi-channel and multi-form training mechanisms.Gree is committed to promoting the tangible benefits of IP intangible assets. It conducted IP custodianship

Seven subsidiaries have been selected as national IP demonstration enterprises and and assistance for upstream enterprises to improve patent quality and reduce infringement risks. For peer

and downstream enterprises the Company led industry technology development and enhanced consumer

17 companies have been selected as national IP advantage enterprises. experiences through patent licensing and transfers. Additionally the Company initiated the establishment of the

Intellectual Property Alliance of China Air Conditioning Industry and served as the first chairman unit standardized

the IP competition environment in the air conditioning industry and promoted patent operations in the industry

demonstrating the responsibility of an industry leader.

422023 ESG Report

Leading the Path to Digital and Intelligent Transformation

The transformation towards digitalization and intelligence is a crucial direction for enhancing the core competitiveness of the manufacturing industry and an important path towards high-end manufacturing. Since 2016

Gree has vigorously promoted digital development continuously improved the level of intelligence and is committed to realizing the data operation and platform operation of the whole value chain promoting efficiency

improvement value creation and improvement of business objectives and creating a new situation of "industrial Internet enterprise". In 2023 the Company accelerated the digital and intelligent transformation across

various segments including production management sales logistics and supply chain.The Company carried out supply chain upgrading and restructuring informatization projects focusing on the five objectives of "centralized procurement"

"efficient supply chain collaboration" "supplier digital management" "smart settlement" and "automated pricing verification" realized supply chain

visualization monitoring and comprehensive performance analysis integrated the technologies of big data knowledge mapping and remote management

In the

procurement and applied them in the hidden danger identification positioning early warning and efficient disposal of supply chain risks so as to accelerate the supply

process chain digitalization transformation of the entire lifecycle.Gree took "unified production system" as its goal fully applied new information technologies such as industrial Internet cloud platform artificial intelligence

big data blockchain and 5G and promoted the design development and implementation of digital platforms around the management of core modules such

as planning control material preparation equipment energy management and process quality control to promote the improvement of production efficiency.In the During the reporting period the Company's first high-density "automated intelligent and digital" integrated production line was put into operation. This line

production

process integrates technologies like automatic assembly fastening welding sticking testing hardware integration and digital integration featuring capabilities in

identification measurement positioning and testing. Additionally the Company independently developed its production line management system achieving

real-time online management of production orders and quality chains.Gree's offline sales use a "self-built mainline logistics + branch/intercity third-party outsourcing" model while online sales leverage e-commerce platform

logistics fully utilizing social resources to effectively reduce logistics losses and enhance response speed. The Company's independently developed AMR

In the sales

process mobile robots equipped with a self-developed multi-platform integrated scheduling system are now widely used in production lines and workshop logistics

across multiple bases significantly enhancing logistics efficiency.The Company vigorously builds a single logistics/multi-finance integrated system to promote the integration of business and finance. During the reporting

In the period under the single logistics/multi-finance architecture of the air-conditioning industry segment the ERP system was upgraded. Through process and

management data restructuring it meets the needs of financial group control multi-party trade and automated accounting.process

432023 ESG Report

Case "Dark Factory" Illuminated "Made in China"

Changsha Gree HVAC Equipment Co. Ltd. a subsidiary of Gree the second-largest comprehensive

base following the Zhuhai headquarters was established in 2014 with a focus on high-standard

intelligent manufacturing. It employs a large number of leading international and independently

developed intelligent equipment and has developed corresponding management software. Built

and put into operation in 2016 it was recognized the following year by the Ministry of Industry and

Information Technology as a "Pilot Demonstration Enterprise for Intelligent Manufacturing" and "Pilot

Demonstration Enterprise for Industrial Internet Applications". Today this base fully integrates industrial

robots CNC machines 5G and other advanced equipment and technologies into its production

management and logistics scenarios setting a benchmark for automation and the latest intelligent

technologies in the national appliance manufacturing industry.Awards received by the Company in the field of digitization in 2023

A demonstration "digital pilot"

2023 Smart Manufacturing Pilot enterprise integrating the

Demonstration Initiative development of new generation

information technology and

manufacturing

Zhuhai Gree Intelligent Manufacturing Gree All-field Digital Management and

Co. Ltd. was approved as an intelligent Control Demonstration Project

manufacturing demonstration factory

National Ministry of Industry and National Ministry of Industry and

Information Information

44

Main content Competent department2023 ESG Report

Creating A Better Life with Technology

Gree has always adhered to user-oriented principles driven by technological innovation. With a commitment to excellence and outstanding control over details the Company continuously enriches the depth and

breadth of its product line. It uses technology to create clean safe intelligent and efficient living and working environments. During the reporting period the Company launched the following high-performance and

high-quality new products:

Household consumer goods sector

Supreme air conditioner High-temperature air conditioner - Silent King+

Newly upgraded cooling and heating distribution technology Coolness upgrade and comfort upgrade: Equipped with the second-generation Gree cold

significantly improving cooling and heating efficiency external unit it challenges the 65°C high-temperature refrigeration zone and 360° sports

Equipped with a newly upgraded internationally leading large air deflector and realizes anti-direct blowing in the whole area and a variety of air

distributed air supply technology it achieves full upper air supply supply angles

for cooling and full lower air supply for heating. The cold air

does not blow on people but warm air warms the whole body. Equipped with Gree's dynamic power compressor: It has strong performance and is capable

This eliminates direct cold air blowing hot head and cold feet of realizing high-frequency high-pressure and efficient operation fearless against high-

situations and upgrades temperature balancing effects creating temperature challenges and full of power

a zero temperature difference balanced space with a vertical Three-ring heat exchange control technology: Through three major technologies it upgrades

temperature difference in the human activity area of <0.1°C the air-conditioning air duct system heat conduction system and temperature control

Whole-house climate ecological management: It integrates air system and achieves efficient heat exchange fearless of "heat" tests

conditioning fresh air fan humidifier dehumidifier and purifier

functions into one unit achieves multidimensional climate

regulation optimization and creates a comfortable living climate

for the whole house

Whole-house IoT ecological management: Serving as the

smart central hub of the home it can connect with all Gree

smart household appliances providing real-time monitoring of

appliance operation status

452023 ESG Report

Kinghome "Global Freshness" refrigerator 516L Formaldehyde hunter air purifier Ruxin heat pump washing machine

Freezing and fresh 2.0 technology: Realize no freezing at International leading Hi-fresh formaldehyde decomposition Self-developed heat pump washing and care technology:

-5°C and maintain freshness for two weeks easy to cut technology: Continuously decompose formaldehyde Achieve gentle drying at 37°C without damaging clothes

with a single knife harmlessly into water and carbon dioxide with a

decomposition rate of 99.9% Wash dry and wear immediately: Integrate washing

38°C super-freezing freshness locking technology: drying and care equipped with GRS rapid drying system

Realize rapid freezing minimize cell damage and Professional-grade purification: Realize digital display of taking only 1 hour for washing and drying

preserve precious nutrients formaldehyde and PM2.5 concentrations and accurately

detect formaldehyde concentration up to 0.001 mg/m3 Global super-fine steam washing 2.0: Enjoy free clothing

Photosynthetic water moisturizing freshening technology: care at home soften fibers and remove wrinkles and

Reduce nutrient loss such as fruit and vegetable moisture Inhibiting bacteria and viruses: Realize double-sided six- fluffiness

and vitamins and delay fruit and vegetable spoilage layer purification whole-house 3D purification H1N1

flu removal rate ≥99.99% staphylococcus removal rate

HCP full-time antibacterial and deodorizing technology: >99.99% and allergen removal rate ≥99%.Equipped with visual dynamic sterilization module the

sterilization rate is up to 99% and the taste is purified in

15 minutes

Provide a safe healthy and long-lasting storage

environment for all kinds of fresh ingredients

462023 ESG Report

Industrial equipment sector

PV energy-storage flexible air-conditioning system Deep mine refrigeration equipment

Integrated ecology: Using air conditioning as the Efficient cooling and dehumidification: Solve problems such as poor cooling and

energy and information center it integrates clean PV dehumidification effects and high resource consumption significantly improving the

power generation safe energy storage and power underground working environment

adjustment efficient air conditioning power saving

and smart IEMS power management creating a Enhanced mine safety: Reduce failure rates improve reliability enhance mine safety levels and

direct current ecological system of "source storage create a good working environment for mine workers

network and load".Low-carbon and efficient: Through on-demand

configuration it provides high-quality energy

assisting in achieving the national "dual carbon" goal

Air-source heat pump floor heating system High-speed bridge-type (five-axis) gantry CNC machine tool

Substantial energy consumption reduction: The High rigidity and temperature: The bridge-type

new generation of heat pump floor heating unit gantry structure is made of high-quality cast

saves over 32% energy consumption compared to beam enjoying high rigidity and stability

traditional floor heating during continuous 24-hour

operation High speed and high precision: The high-

speed direct drive system adopts closed-loop

Outstanding innovation advantage: Optimize control with X and Y axes driven by high-thrust

heat supply and demand matching cloud-edge linear motors with maximum speed up to 80

collaborative control of heat pump floor heating m/min; the high-speed and high-rigidity electric

achieve efficient energy saving and adapt to high- spindle has a maximum speed of 20000rpm

quality energy needs achieving high-speed cutting

472023 ESG Report

Case Gree developed the world's first mine air conditioner

10kV HV direct-drive permanent magnet synchronous variable frequency centrifugal chiller Upon understanding the harsh working conditions in

domestic mines which severely affect miners' health and

Efficient compressor design: It is designed for the thermal hinder efficient and safe production Gree leveraged over

load characteristics of data centers achieving "small 30 years of experience in large central air conditioning to

pressure ratio" high-efficiency aerodynamic design in all overcome challenges in local mine cooling equipment such

operating conditions ensuring compressor operation in the as poor refrigeration and dehumidification high consumption

efficient zone of fresh air and water resources ineffective heat exchange

in stagnant air and narrow operating range of compressors.Significant energy-saving advantages: It adopts high- The Company successfully innovated a new set of

power permanent magnet synchronous variable frequency refrigeration equipment suitable for deep mine heat control

motors with a maximum efficiency of 98.2% all-load motor significantly improving the working environment for deep

efficiency of above 95% and the circulation efficiency of mine workers reducing labor intensity and minimizing work

dual-stage compression and air replenishment structure stoppages due to high temperatures and humidity during

improved by 5-6% the summer. The project outcome "Key technology and

application of new refrigeration equipment for heat damage

control in deep mines" has reached an "internationally

leading" level.Industrial centrifugal heat pump with large capacity and high efficiency

High-efficiency centrifugal compressor: It adopts a large-

power high-speed direct drive rotor structure eliminates

speed-increasing gears and reduces mechanical losses by

70% with compressor weight and volume reduced by 60%

and noise reduced by 8dB(A)

Comprehensive carbon-neutrality solution for all scenarios:

The water outlet temperature can reach 120-140°C the

micro-pressure steam can be directly flashed fully meeting

the heat needs of non-process industries and the annual

Gree 2024 Global Dream Summit themed "Embrace the Present

single unit operation can reduce carbon dioxide emissions Shape the Future"

by 15000 tons

4804

Upholding People-

oriented for A Better Life

Gree has always prioritized talent development attracting talent with

strong capabilities nurturing talent through independent innovation

and providing generous benefits to serve talent. The Company

considers talent development as its most important responsibility

places high importance on protecting employee rights and enhances

employees' enthusiasm and sense of belonging. Moreover the

Company actively fulfills social responsibilities emphasizes

communication and exchange with multiple stakeholders encourages

employees to participate in voluntary activities and engages in public

welfare charity activities such as rural revitalization and community

co-creation striving to contribute to society.Safeguarding the Legitimate Rights and Interests 50

of Employees

Empowering Employees' Career Growth 52

Safeguarding the Health and Safety of 57

Employees

Enhancing Diversified Wellbeing of Employees 60

Bravely Assuming Corporate Social Responsibility 63

SDGs benchmarking2023 ESG Report

Safeguarding the Legitimate Rights and Interests Collective Bargaining

of Employees Gree constantly continues to improve the skills and level of

collective bargaining strengthens the collective bargaining

Gree strictly adheres to relevant laws and regulations such as the "Labor Law of the People's Republic of China" and the "Labor Contract Law talent team promotes collective bargaining and makes positive

of the People's Republic of China" revises and implements regulations such as the "Measures for Administration of Employee Recruitment" contributions to safeguard the legitimate rights and interests

"Measures for Administration of Attendance" "Measures for Administration of Salary" "Measures for Administration of Performance" and of employees realize win-win situation for both enterprises

"Measures for Administration of Labor Protection of Female and Underage Workers" effectively safeguarding the legitimate rights and and employees and construct harmonious labor relations. The

interests of employees. Company has been recognized as a model for enterprise labor and

capital communication and negotiation in Guangdong Province in

Equal Employment 2023 a typical enterprise for collective bargaining in Zhuhai City in 2022 and has won the first prize for excellent cases in collective

bargaining. Furthermore a collective contract was ratified by the

The Company upholds the principles of "open recruitment fair competition and merit-based employment" adheres to equal employment and Workers' Congress with a signing rate of 100%.equal pay for equal work and resolutely eliminates child labor and forced labor. It avoids any discrimination based on employees' ethnicity

gender age disability marital and parental status respects employees' rights to freedom of assembly and association under the law. In 2023

Gree did not experience any incidents of employment discrimination harassment child labor or forced labor violating human rights in labor

with a 100% employee social security coverage rate. A collective contract was ratified by the Workers'

Additionally the Company ensures that labor contracts are based on principles of equality and voluntariness and strictly follows legal Congress with a signing rate of 100%

regulations and contractual agreements in the execution renewal termination and ending of labor contracts regulating employment practices

strictly. In 2023 the labor contract signing rate was 100%.In 2023 Gree did not experience any incidents of employment

discrimination harassment child labor or forced labor

violating human rights in labor with a 100% employee

social security coverage rate

In 2023 the labor contract signing rate was 100%

Gree has been honored as the most influential employer by Gree was listed on the "2022 Typical List of Collective Negotiation in Zhuhai"

Haitou.cc in 2023 and was listed on Forbes' The World's Best and the "2022 Award List of Collective Bargaining Excellent Case in Zhuhai"

Employers 2023

502023 ESG Report

Employee Communication Women's Rights

Gree always adheres to the "people-oriented" The Company strictly enforces the "Law on the Protection

principle and vigorously promotes labor of Women's Rights and Interests" and "Provisions on

and capital communication and negotiation. the Scope of Prohibited Work for Female Employees".By establishing a sound labor-management It legally provides maternity check-up leave maternity The Company's Loving

communication mechanism broadening the leave special breastfeeding time dedicated bus lines for Mother Huts was awarded

channels of employees' demands listening loving mothers and flexible working benefits and reduces the honor of "Loving Mother

to employees' voices through the labor union workloads for breastfeeding female workers. Hut in Guangdong Province"

and grass-roots branch unions intelligent

labor unions democratic l i fe meetings

employee satisfaction surveys etc. the

Company promotes mutual understanding

and support between the enterprise and its

employees and lays a solid foundation for

the stable development of the enterprise.In 2023 the Company was honored as a Typical Enterprise for Labor and Interactive

"Typical Enterprise for Labor and Capital Capital Communication and Communication Platform

Communication and Negotiation in Guangdong Negotiation in Guangdong Province of Intelligent Trade Union

Province". in 2023

The Company provides Loving Mother Huts for pregnant and breastfeeding women

Leave System

Employees are entitled to statutory holidays paid annual leave personal leave

compensatory leave sick leave injury leave marriage leave bereavement leave

maternity leave (including obstetric leave) incentive leave family planning surgery

leave paternity leave child-care leave nursing leave prenatal check-up leave and

breastfeeding leave. The Company advocates completing tasks within normal working

hours and considering the characteristics of production and operations continuously

promotes work-hour management through enhanced shift management and other

measures safeguarding employees' rights to rest and leave.The Company held a grassroots democratic life meeting to listen to employees' opinions

512023 ESG Report

Empowering Employees' Career Growth

Gree has always held the belief that "talent is the first resource" recognizing that genuine self-innovation can only be achieved by valuing and

developing talent. This philosophy has been integral to Gree's development infusing vitality and energy into the enterprise.Building Employee Career Development Pathways

In the face of macroeconomic uncertainties and complexities the Company pays close attention to and safeguards employees' interests

optimizes and adjusts salary schemes to allow all types of talent to excel. For technical management staff career development pathways

in "professional managerial and comprehensive development" are designed and for frontline staff a skill level evaluation mechanism is

established.The Company constructs career development pathways for employees and continuously improves a performance-oriented salary mechanism

based on job positions. Focusing on improving work efficiency enhancing team quality optimizing personnel structure boosting employee

vitality and retaining core talent the Company implements a job-based and performance-oriented salary development system conducts

professional level evaluations and develops a reasonable flexible and effective compensation system to foster talent development and

growth.Employee career development pathways

Company executive Expert designer

Middle-level management New Senior designer

employee

Division supervisor Advanced designer

Team leader Vertical development Junior designer

Management direction Specialist Designer Professional direction

Administrative Business Technology Process Production

functions sales R&D quality operations

Horizontal development

522023 ESG Report

Improving the Talent Development System The 2023 annual company-level training plan takes the

four dimensions of strategic landing support key group

Gree aims to provide a comprehensive growth platform for the Company's employees establish cultivation key business development and cultural literacy By the end of 2023 all 59 training

a culture of utilizing talents effectively and adhere to the concept of independent talent training. enhancement as the framework. It encompasses 59 projects were successfully completed

Tailored to the Company's strategy each unit's business development and talent training needs specialized training projects jointly implemented by the

a company-wide learning (four levels) development plan is devised organized and implemented. involving participants training center and various units. The training effectiveness 25000

The annual needs survey begins with organizational strategy business development staff skills is closely monitored with each project driven by dedicated with an average annual satisfaction rate

and cultural literacy employing a "dual-track linkage" approach at both company and unit levels. personnel to ensure a PDCA (Plan-Do-Check-Act) closed-

This process involves a top-down review of strategic goals to identify related training needs and of loop management enhancing training outcomes. By the 98%

a bottom-up refinement to distill the training needs related to staff business skills. This results end of 2023 all 59 training projects were successfully

in the formation of a complementary four-level training plan: company-wide departmental completed involving 25000 participants with an average

office and individual levels. Each level's plans are subdivided and complementary focusing on annual satisfaction rate of 98%.integrating strategy with performance in learning and development goals.Case The Company carried out "Great New Forces" 2023 new graduate onboarding training

Four-level development plan

The 2023 fresh graduate training camp focuses on the core goal of "strengthening corporate

culture imprint solidifying professional ethics and successfully transitioning into Gree

Four-level training plan system for all employees professionals". It aims to nurture a team of growing responsible efficient adventurous and

team-spirited "Great New Forces". Nearly 800 headquarters-based new graduates underwent

specialized customized and distinctive training at the "New Forces" camp preliminarily

Level Training plan Training focus transitioning from campus life to becoming part of Gree and embarking on the grand journey of

"devoting to the Gree dream falling in love with Made in China".Strategic level Company-level Strategic support Key group Key business Cultural literacy plan implementation cultivation development enhancement

Department-level Project-based operation of Cultivation of relevant groups

plan key businesses at a deeper level

Business

level Division-level Business Team Management Technique

plan innovation and development and experience experience development construction inheritance inheritance

Performance Individual- "New Forces" growth path and the training camp's "3-6-1" learning and development modelWork performance Career development Knowledge and skill

level level plan improvement challenges reserves

532023 ESG Report

Moreover the Company places particular emphasis on the independent development of skilled talents helping ordinary workers become

Case "Voyage Plan" team leader training high-end industrial talents with skills knowledge and aspirations. A self-developed skilled talent system is established creating a "frontline camp employee—skilled worker—craftsman" growth pathway. Additionally aligning with national professional skill standards the Company

"Voyage Plan" (2023) team leader development stems from innovatively designs a career development system and incentive application system for the entire group's skilled talents incorporating a

the "Vanguard" training camp (supervisors + team leaders) skilled occupation certification mechanism skill level re-evaluation system and a comprehensive incentive system facilitating the selection

evolving into a regular initiative targeting supervisors cultivation application and retention of skilled talents and promoting a "top-down bottom-up" mechanism to drive high-quality development of

and team leaders among the grassroots management. It human resources.regularly introduces valuable learning materials and ensures

continuous learning for the participants; offline intensive Advancing the Skill Level Evaluation Mechanism

training employs innovative teaching methods like "flipped

classroom management games and sandbox simulation"

stimulating proactive thinking and invigorating team dynamics. Focusing on technical positions the Company vigorously advances a professional technical level evaluation mechanism establishes a

Post-camp evaluations show high comprehensive ratings skill development pathway for capable and high-performing "skill-based" and "technical" personnel to become frontline skilled workers and

with course satisfaction averaging 98.8 points and overall successfully completes the full-process system construction of qualification standards training systems evaluation systems and incentive

training camp satisfaction reaching 99.6 points. systems. The regular evaluation of skill levels and tiered management of skill allowances reflect the "skill-level-oriented" differentiated

incentive principle fostering the formation of skilled talent echelons and enhancing skill levels. The cultivation of skilled talent promotes

the spirit of model workers labor and craftsmanship motivating more workers to pursue a path of skill-based success and strengthening

enterprises through skills.Structure chart of company-level skilled workers assessment team

Company-level

Skilled Worker

Evaluation Team

Process Equipment Power Quality Control Motor Vehicle

HR Department Department Department Test Center Department Fleet

"Voyage Plan" improvement training camp Results Process Equipment Equipment Quality Logistics and

Application Operation Operation Commissioning Maintenance Product Testing Inspection Transportation

542023 ESG Report

Occupational Skill Certification Mechanism Implementation Effect of the Skill Development System

After years of development Gree has clearly defined the types of skill occupations. The review of skill The overall number of skilled talents in the group has achieved continuous growth. Since a small-

occupations adheres to the principles of "fairness impartiality and openness" plays a leading role scale pilot at the Zhuhai headquarters in 2013 through gradual promotion across various branches and

in the company-level skill evaluation group organizes and carries out the certification work for skill subsidiaries and continuous exploration of new occupations the number of occupations and skilled

occupations. The specific process is as shown in the following diagram: workers has been increasing year by year. As of the end of 2023 skilled talents cover 78 units at Gree

headquarters and subsidiaries in other regions with 117 skill occupations and about 14000 skilled

Skill type review process workers representing an 8-10-fold increase compared to 2013.Skilled Worker Evaluation Process

By the end of 2023 the Company has trained and recommended 110 national provincial

Company-level Skilled Position (Work Type)

Worker Evaluation Team Competent Unit Employing Unit municipal and district (county) technical experts and 393 craftsmen for enterprises and

society.Initiate the identification

of work types

Case Gree won multiple honors at the Fourth Zhuhai Vocational Skills Competition

Call for skilled work Submission of skilled

types work types In December 2023 the Fourth Zhuhai Vocational Skills

Determine the list of new Competition and the Second "Top of All Trades" Competition Material review on-

work types by comprehensive site research and work concluded. The Competition lasted 14 days featuring 32

ranking of new work types video evaluation events including CNC lathe work electrician skills and

software technology with over 1300 high-quality volunteer

talents competing on this grand stage showcasing their

Conduct a company-level abilities.evaluation meeting for skilled

work types After intense competition Wang Peng from Gree's Xiangzhou

Branch ranked first in the electrician competition earning

the title of "Zhuhai City Technical Expert"; Wu Lisen and Qin

Approve by NG Shujian secured the second and third places respectively;

company leaders Wan Jinming received the "Excellent Judge" honor; Gree was

awarded the titles "Advanced Unit" and "Champion Participant

Unit" at the Fourth Zhuhai Vocational Skills Competition and The "Top of All Trades"

Release the Second "Top of All Trades" Competition. Competition

552023 ESG Report

High Emphasis on Employee Ideological and

Case The Company organized "Learn from Lei Feng Be the Successor

Political Education of Lei Feng" themed activities

In 2023 marking the 60th anniversary of senior revolutionaries like Mao Zedong endorsing Lei

While focusing on the professional development of employees Gree insists on "fostering virtue and Feng the Company specially organized the "Learn from Lei Feng Be the Successor of Lei Feng"

cultivating people" guided by political ideology actively practices socialist core values and promotes themed activities which are divided into four phases: "Learn Think Comprehend Act". Through

advanced corporate culture serving the overall development of the Company and educating employees widespread and deep mobilization over 60 units actively participated in the activities creating a

to enrich their sense of national identity strengthen professional ethics and solidify their ideals and prominent direction and value pursuit where "Lei Feng's spirit can be learned by everyone and

convictions. acts of kindness can be done everywhere".In 2023 the Company organized various activities such as "Learn from Pioneers Strive for the Forefront

Create Outstanding Achievements Establish New Merits" themed education special training classes

for party members and key leaders "Learn from Lei Feng Be the Successor of Lei Feng" themed

education "Keep the Market during Peak Season" special education and National Defense Education

Month carrying out ideological and political education activities in a targeted manner through mass

thematic and accessible approaches enabling employees to enhance their ideological quality and value

pursuit subtly and striving to cultivate virtuous and talented new-era industrial workers.Ideological and political education and training system of the Company

Establishing virtue

and empowering people

The Company organized "Learn from Lei Feng Be the Successor of Lei Feng" themed activities

Coordinate and guide at the

company level Educational system

Implement at the unit level pattern

Determine the theme of ideological and political education every year

Adopt mass thematic and accessible education method

Organize and carry out various ideological and political education

activities in a targeted manner

56

Cultivate new-age industrial workers who

are both virtuous and talented

Maintain firm ideals and

principles

Establish professional

ethics

Strengthening family and

national sentiment

Serve the overall

situation of enterprise

development

Promote the advanced

culture of the enterprise

Actively practice

socialist core values

Lead by political thought2023 ESG Report

Safeguarding the Health

Case Gree conducted a Group Fire Safety Skills Competition

and Safety of Employees

In October 2023 the Fourth Gree Group Fire Safety Skills

Competition was grandly held. The Competition focused

Gree strictly adheres to laws and regulations including the "Work Safety Law of the People's on assessing operational skills to enhance job-specific

Republic of China" "Law of the People's Republic of China on Prevention and Control skills on the premise of daily training and job-specific

of Occupational Diseases" and "Fire Control Law of the People's Republic of China" drills ensuring that all participants met the requirements

and formulates systems such as the "Measures for Administration of Safety Production of "preventing fire routinely and rescuing in case of fire". A

Responsibility System" "Measures for Administration of Work Injury" "Measures for total of 76 participants from 19 fire brigades across Gree

Prevention and Control of Occupational Diseases" "Measures for Administration of Special headquarters and its branches competed fiercely with

Equipment Safety" "Measures for Administration of 'Three Simultaneities' for Construction The Fourth Gree Group Fire Safety Skills Competition siteHefei Gree winning the first prize Changsha Gree the

Projects" "Measures for Administration and Assessment of Fire Safety" "Measures for second and Hangzhou Gree the third.Administration of Personnel Vehicle and Traffic Safety" "Measures for Administration of Fire

and Explosion Safety" etc. Gree consistently upholds the safety production management

philosophy of "equally emphasizing safety and production" focusing on filling gaps and

Case Promoting learning and enhancing skills through competition and promoting strengthening weaknesses in safety responsibilities standards technology and quality. The application and empowering employees through learning

Company actively promotes the systematization and standardization of safety production

work striving to cultivate a real culture of safety. It has obtained the Occupational Health and In December 2023 the Company held the final round of "Gree Safety Cup" Safety Production Knowledge

Safety Management System Certificate. Competition. Since the launch of the knowledge competition all units of the Group have responded

enthusiastically and leading cadres have personally organized and deployed. Over the course of 78 days

Construction of Safety Cultures 43 units signed up to participate attracting more than 50000 employees to actively engage in learning about production safety. After rigorous selection through internal competitions within each unit and preliminary

rounds at the headquarters eight teams excelled and advanced to this final competition. Through four rounds

Gree has established a corporate culture of "People-Oriented Safe Production Health of competition Gree Changsha HVAC Equipment Co. Ltd. won the first prize Gree (Shijiazhuang) Electric

Assurance and Life Care". It has set up a Safety Production Committee which is chaired by Appliances Co. Ltd. and the Sheet Metal Spraying Plant (headquarters) won the second prize and the

the Chairman and responsible for coordinating guiding and supervising safety production Prototype Center (headquarters) Hefei Kinghome Electrical Co. Ltd. and the Western Region Household

work; and established a comprehensive safety production system. Each year it signs the "EHS Assembly Factory (headquarters) won the third prize with the Quality Control Department (headquarters) and

Responsibility Agreement" with units at all levels further consolidating the responsibility for Zhuhai Kaibang Motor Manufacture Co. Ltd. receiving the Excellent Organization Award.safety production. Gree invests as needed without setting limits in improving safety production

and occupational health. In addition to the standard investment in necessary labor protection

supplies and safety facilities the Company actively promotes technological upgrades and the

automation of manual operations to improve the working environment for employees.Gree conducted the "Gree Safety Cup" 2023 Safety Production Knowledge Competition

In 2023 Gree organized multiple safety production-related activities such as fire-fighting

skills competitions safety production knowledge contests training sessions to enhance the This "Gree Safety Cup" Safety Production Knowledge Competition with its innovative approach to safety knowledge

management capabilities of key responsible persons and safety officers Safety Production education and training enhanced the interest in learning safety knowledge increased the enthusiasm of employees

Month series activities new employee fire theory training and comprehensive safety training for learning about safety and sparked a wave of safety knowledge learning across the Group. Through this

which have enhanced the safety awareness of employees and their emergency response Competition not only were the safety awareness and skills of the Company's employees enhanced but the safety

capabilities in dealing with sudden incidents. production "real" culture was also deeply embedded in the hearts of the people.

572023 ESG Report

Safety and Health Monitoring Employee Psychological Care

The Company places a high emphasis on the prevention and In active response to the spirit of the "Implementation Plan

management of occupational diseases and has established the of Guangdong Federation of Trade Unions to Promote

"Measures for Prevention and Control of Occupational Diseases". Psychological Health Services for Workers throughout the

Appropriate labor protection supplies are provided to employees in Province" the Company is piloting the construction of the

positions with occupational hazards such as safety shoes earplugs Gree Psychological Services System explores models

protective masks AED defibrillators and medical kits. The Company and mechanisms for psychological services for employees

organizes regular occupational health examinations and inspections at Gree improves the mental health service system

of hazardous job positions annually effectively preventing various for employees safeguards and protects the physical

occupational risks and injuries thereby maximally ensuring the and mental health of employees and cultivates a good

health and safety of employees In 2023 the company achieved a psychological quality of the employees. The Gree Trade Unveiling ceremony of Gree's Psychological Service Station

100% employee physical examination rate. Union in collaboration with Qianshan Street meticulously

establishes the "Employee Soul Station" at the Kangle

Park Phase I Employee Activity Center.AED

installation

site

The Company regularly invites professional psychologists from the Soul Home Psychological Counseling Center in Nanshan District

Shenzhen to provide rich psychological health services including psychological assessments and interpretation of assessment

reports every week.Gree Employee Soul Station

Medicine box photo

582023 ESG Report

Case The Company invited teachers from South China Sunshine Fund Subsidy

Normal University to conduct psychological lectures for

employees The "Sunshine Fund" was established by Gree in the second half of 2009 to ensure the health of Gree

The Company organizes the Employee Lecture Hall specially inviting professional employees creating a comprehensive system for major medical assistance for employees. The Fund which

teachers from the School of Psychology of South China Normal University to has a history of 15 years involves the trade union auditing Sunshine Mutual Aid Fund materials monthly. It

provide training and psychological counseling lectures helping alleviate the provides secondary reimbursement after social security claims for outpatient and inpatient treatments needed

stress of work and life managing emotions and enhancing the Company’s by employees their spouses and children under 18.overall attention to employee psychological issues enabling timely prevention

identification and resolution of these issues.Enhancing Diversified Wellbeing of

Employees

Gree adheres to the concept of creating a "comprehensive incentive system" covering all employees with a

performance incentive system. Moreover the Company is dedicated to building a "safe haven" for employees'

happiness allowing them to focus on career development without worries. Gree has set the goal of "creating

a comprehensive welfare system for employees". Substantial investments have been made to construct

comfortable living areas with complete facilities for employees—Kangle Park Phases I and II projects.Teachers from South China Normal University conducting psychological lectures at Gree

Staff living area of Gree Kangle Park Phase I

592023 ESG Report

In terms of daily employee life the Company's internal canteens cater to both northern and southern tastes providing three

meals a day for over 30000 headquarters staff; in terms of accommodation Gree provides fully furnished employee dormitories

that are move-in ready upon employment; regarding transportation there are free shuttle buses covering major areas of Zhuhai Employee Stock Ownership Plan

for commuting; additionally the Company offers customized work uniforms communication packages for all employees and

comprehensive health check-ups thereby creating a system of welfare measures that ensures the happiness of Gree employees.The Company has established a long-term and effective incentive

mechanism launched employee stock ownership plans to

attract and retain talented individuals realized the incentive and

stable retention of middle and senior management and core and

backbone employees formed a community of interests between

employees and the Company and enhanced employees' sense

of belonging and responsibility. Since 2021 the Company has

introduced two phases of stock incentive plans. As of Dec.31

2023 the first phase of employee stock ownership plan covered

4513 employees and the second phase covered 3170

employees.As of December 31 2023 the first phase

of employee stock ownership plan covered

4513 employees and the second phase

covered 3170 employees

Huge Gree shuttle system Staff canteen covering north and south flavors

602023 ESG Report

Support for Employees in Need Enriching Employee Activities

Gree consistently implements the care system of "visiting all who are injured comforting all who are seriously ill and caring for all Gree advocates for healthy work and happy living strives to create

who are hospitalized" making support and warmth a normal frequent and everyday occurrence. The Company actively explores a relaxed and active work atmosphere and enhances employees'

effective ways and measures to assist employees in need ensuring precise and dynamic management enhancing employees' sense job satisfaction. The Company in line with its own circumstances

of achievement happiness and satisfaction and truly making the employees in need feel the warmth of their "family". has hosted various unique cultural and sports activities.The Company organized the "Made

Case Gree organized Mid-Autumn and National Day Sympathy Visits for employees in need Case in China Loved by the World"

Singing Competition

At the end of September 2023 the Company's Trade Union department leaders and branch unions visited employees In early November 2023 Gree's Party Committee and the

with documented difficulties and serious illnesses before the festival. They went together to the homes of these employees Trade Union initiated a Singing Competition which was

engaging in face-to-face conversations with the employees and their families listening to their concerns and practical needs responded to by various factories departments subsidiaries

in life and delivering festive blessings and sympathy gifts. and domestic and overseas dealers sparking a wave of

enthusiasm for singing. Since the Competition began the

song "Made in China Loved by the World" has become

the exclusive BGM for Gree employees striving at the front

lines fostering innovation and making the dream of "Made in

China" shine in every corner. After several rounds 12 teams

from 16 units stood out and entered to the finals."We take mission on our shoulders and keep original

aspirations in mind" the singing voiced the passionate

achievements of Gree over the past five years. As expressed

in the lyrics of "Made in China Loved by the World" Gree

has always adhered to independent innovation using

wisdom and strength to forge national pride.Caring for employees in need

"Made in China Loved by the World" Singing Competition site

612023 ESG Report

Case The Ninth "Gree Cup" Fun Sports Meeting held successfully Case Zhuhai Cultural Center's "Full Art Camp" entered Gree

In November 2023 the ninth "Gree Cup" Fun Sports In November 2023 the "Full Art Camp"

Meeting heatedly commenced. The event attracted visited the employee living area of Gree

over 800 employees from 40 departments of the Electric Appliances Inc. where 60 Gree

Company who competed in six events demonstrating employees embarked on a relaxed and

the enterprising spirit of Gree people through concerted joyful journey of art. This event was

efforts. guided by the Zhuhai Municipal Bureau

of Culture Radio Television Tourism

and Sports hosted by the Zhuhai City

Cultural Center and co-organized by

the Trade Union Committee of Gree

Electric Appliances Inc. of Zhuhai. With

the "cocoon" in hand as the storyline

the activity extended from the classroom

to the outdoors experiencing holding

paintbrushes and coffee handles and

"Full Art Camp" employee activity site

The Ninth "Gree Cup" Fun Sports Meeting site enjoying the ease and happiness brought

by public welfare culture and art.Case Gree Cheongsam Class officially concluded: Beauty never fades with time

In June 2023 the "Lingnan Cheongsam * Beautiful

Embrace" Gree Cheongsam and Physical

Training Class celebrated its completion day. The

instructors led the Gree participants to the Zhuhai

Yuanming New Garden for the closing ceremony

which included an outdoor catwalk and photo

shoots. Xiao Xiaolong Party Group Secretary and

Executive Vice President of Xiangzhou District

Federation of Trade Unions attended the closing

ceremony. Gree Cheongsam Class officially concluded

Other diverse cultural and recreational activities organized by the Company

such as theater performances table tennis matches basketball matches

and esports competitions etc.

622023 ESG Report

Case Gree's 2023 College Graduate Technology Empowering Agriculture

Bravely Assuming Induction Ceremony held in Zhuhai

In December 2023 Gree held the induction ceremony for To consolidate the achievements in poverty alleviation and strengthen the foundation

Corporate Social the 2023 college graduates. The Chairman and President of specialized industries technology is the indisputable primary driver. As a national

Dong Mingzhu Party Secretary Zhang Wei and 1067 enterprise committed to "mastering core technologies" Gree has repeatedly set

Responsibility new graduates attended the ceremony. Chairman Dong examples in leveraging innovative technology to boost rural revitalization.Mingzhu delivered a speech mentioning that during

the General Secretary's inspection of Gree in 2018 he

Behind the success of a business there must be a described Gree as "genuinely learning understanding

contribution to society only realized through practice The first unit of Gree's independently developed believing and applying" which not only affirms Gree's Case

can the true value of a business be shown. Gree has lychee-specific mobile preservation equipment past achievements but also serves as motivation for Gree

always upheld the philosophy of "taking from society successfully rolled off the production lineemployees. She expressed hope that generation after

and giving back to society" actively participating in generation of young people would carry forward Gree's In June 2023 the first unit of lychee-specific mobile preservation equipment

various public welfare activities and investing significant cause and make it a world-class brand. independently developed by Gree was successfully launched. This unit has

resources in charitable causes. Whether providing an effective internal volume of 20 cubic meters capable of storing 5 tons of

assistance during natural disasters or supporting lychees. The equipment uses a full-domain permeation air delivery design

education medical care and sports public welfare which keeps the dehydration rate of lychees as low as 0.51% maintaining

projects Gree has demonstrated the social responsibility a healthy fruit rate of 99.8% even after 20 days of storage. The integrated

expected of a large corporation. In 2023 the Company anti-vibration structure design enhances convenience in installation

contributed approximately CNY17.6 billion in taxes transportation and construction extending the supply period for beautiful

making a significant contribution to the national economic rural areas with lychees as their primary industry facilitating staggered

development. sales increasing farmers' income and adding value to the industry thereby

injecting relentless energy into advancing industry development and rural

Stabilizing and revitalization.Protecting Employment

Gree firmly implements policies and measures for

stabilizing and protecting employment continuously

secures and expands jobs and has insisted on no layoffs

during the pandemic ensuring normal distribution of year-

end bonuses and continuously recruiting outstanding

talent from universities. Over the past five years nearly

18000 college graduates have been recruited. In 2019

Gree established the "Veterans Base" incorporating 560

veterans into Gree's workforce. In 2023 it was selected

as one of the first "National Socialized Military Support Gree's 2023 College Graduate Induction Launch ceremony of the first unit of Gree's independently developed lychee-specific Ceremony site preservation equipment

Enterprise" honors.

632023 ESG Report

Social Welfare Donations Fulfilling Overseas Responsibilities

Gree is not just a company but also a citizen with social responsibilities. The Company has Gree Electric is committed to contributing to the sustainable development of the global economy

repeatedly demonstrated its commitment to social responsibility by radiating positive energy implementing the national "Belt and Road" initiative respecting the culture and customs of the project

through its actions. sites vigorously absorbing local employment caring for local employees and focusing on the positive

impact on the local community and the environment. It actively integrates its development into local

economic and social development actively creates economic and social values and promotes the

Gree donated a thousand sets of electric heaters to aid the prosperous development of the local economy together with the host government business partners and Case earthquake-stricken area of Jishishan Gansu local residents.On the winter solstice of 2023 an emergency

vehicle loaded with a thousand sets of Gree Case Training for local air-conditioning professionals by Gree in Brazil

electric heaters departed from Xi'an to the

earthquake-stricken Jishishan area in Gansu In 2023 to enhance the quality of services across the entire supply chain Gree Brazil actively

and then quickly distributed to the severely conducted training for local air-conditioning professionals covering installers and repair

affected town of Dahejia. The heaters not only technicians. The training sessions were held across Brazil's five major regions (Northeast

brought warmth to the people in the disaster Southeast North South Central-West) totaling 128 sessions with 7195 participants. By co-

area but also brought them confidence in life. hosting training sessions with customers and using real cases and technical explanations Gree

significantly improved the technical skills in air-conditioning maintenance and installation among

participants strengthened Gree's competitiveness in the Brazilian market enhanced employment

capabilities and positively contributed to Brazilian vocational education.Gree's northwest branch aided the earthquake-stricken area of Jishishan Gansu Training for local air-conditioning professionals by Gree in Brazil

642023 ESG Report

Gree Qatar sponsored Qatar National Sports Festival

Case Gree Vietnam sponsored the local CSC Award

Since its establishment in 2011 by the FSC Fund

— a fund supporting outstanding construction

students — the CSC Award has been aimed

at encouraging and creating conditions for the

comprehensive development of students meeting

the demands and challenges of Vietnam's national

integration process. For three consecutive years

Gree Vietnam has been a gold sponsor of the

CSC Award supporting outstanding students in

Vietnam's construction industry and contributing to

the development of local talents. Gree Vietnam sponsored the local CSC Award

Gree Brazil sponsored racing sports

6505

Striving for Excellence

and Creating Shared

Value

For over thirty years Gree has consistently pursued

perfect product quality and customer satisfaction. The

Company tirelessly works to build a responsible and

sustainable supply chain. By continuously promoting

industry collaboration and upgrades Gree progresses

alongside consumers partners and peers sharing the

values of high-quality development.Building A Sustainable Supply Chain 67

Creating Extraordinary Products with 70

Craftsmanship

Improving User Experience 72

Promoting the Healthy Development of the 77

Industry

SDGs benchmarking2023 ESG Report

Building A Sustainable Supply Chain

Gree is committed to the organic integration of ESG concepts and supply chain management. While executing honest righteous

professional and efficient procurement Gree strengthens value chain risk control and leads sustainable value creation in the industry

chain through a perfect supplier management mechanism and leading supplier empowerment programs.Supplier Management

Gree's supplier audit includes the following social

To fully guarantee the Company's production and tirelessly pursue perfect quality to meet customer demands Gree places great responsibility aspects:

emphasis on the quality of procurement. The Company has established a perfect supplier development and management system and

through in-depth communication and interaction with suppliers to achieve mutual benefit and win-win situation with partners and common

development. No employment of children under the age of 16

As of 2023 a total of five subsidiaries of Gree have been selected as green supply chain management enterprises in the Green No forced labor physical punishment abuse or verbal

Manufacturing List of the Ministry of Industry and Information Technology: Gree (Shijiazhuang) Electric Appliances Co. Ltd. Gree insult of employees

Changsha HVAC Equipment Co. Ltd. Gree (Zhongshan) Small Home Appliances Co. Ltd. Gree (Chongqing) Electric Appliances Co. No discrimination based on age or gender in hiring or

Ltd. and Gree Altairnano New Energy Inc. promotion processes

Employees enjoy freedom of association and the right to

collective bargaining on remuneration

Provide a safe and healthy work environment including

fire safety and facilities regular maintenance and

For new supplier admission For suppliers that have been put into storage reporting for special equipment personal protective

equipment and timely medical check-ups for employees

Gree implements a stringent review process. After Gree implements a strict regular audit and elimination mechanism. in hazardous positions with prompt feedback on health

meeting the quality or technical level potential suppliers The Company's supplier audit plan annually selects a proportion of anomalies

must also meet the Company's layout of the industry and suppliers for documentation review and on-site evaluation focusing

supply chain etc. and be evaluated and screened by primarily on first and second-tier suppliers. The review covers various Comply with legal or industry standards for maximum

the Company's evaluation team which consists of the aspects including changes in the supplier entity (shareholders allowable working hours within a week pay overtime at

purchasing external management and quality departments. managers etc.) changes in production sites expiration of production the premium rate and ensure that employees take time off

If the supplier submits more than the specified number qualifications (production licenses pollution discharge permits etc.)

of samples for sample review and small batch trial or the changes in raw materials (brands processes etc.) implementation Provide social security for employees and arrange leave

samples are unqualified its candidacy as a new supplier of production process quality control requirements compliance with as per national legal requirements

will be cancelled. Moreover all new suppliers are required safety protections for production staff timely calibration of inspection

to commit to adhering to the code of conduct of "Business equipment inspection capabilities meeting Gree's testing requirements

Social Compliance Initiative" (BSCI). and compliance of finished goods warehousing.

672023 ESG Report

Gree's supplier audit includes the following environmental Case Motor supplier training

protection aspects:

In recent years inverter air conditioners have increasingly dominated the household air conditioner market. While

Products do not contain toxic and hazardous substances inverter DC motors offer advantages such as quiet operation energy efficiency and precise control there has also

restr icted under the "Direct ive on Restr ict ion of been a notable increase in motor failure rates. Through analysis of post-sales reviews of inverter air conditioners

Hazardous Substances (RoHS)" and the "EU Regulation Gree has identified reducing the failure rate of DC motor control boards as a pressing issue.on Registration Evaluation Authorization and Restriction In October 2023 the Company invited control experts from the ROHM Semiconductor Group to provide in-depth

of Chemicals (REACH)" with relevant testing reports training on clean electricity and overvoltage management. Along with internal technical personnel general managers

provided technical directors and quality directors from various DC motor suppliers participated in the training collectively

promoting the improvement of DC motor product quality.Possess hazardous substance testing equipment

Identify and segregate toxic and non-toxic materials in

warehousing material handling and production lines with

risk identification for potential pollution in the production

process

Establish green supplier certification procedures and

green supplier lists sign agreements related to hazardous

substance control with such suppliers or require suppliers

to provide relevant commitments with suppliers having

valid testing reports from authoritative third-party testing

institutions on the content of hazardous substances

Motor supplier training

Gree also highly values supplier empowerment. For suppliers identified Gree consistently strives to create an open fair and clean

as non-compliant or potentially risky during regular reviews proactive competitive environment in the supply chain. The Company

assistance is provided for timely rectification. Additionally the Company has opened a self-recommendation platform for suppliers

regularly holds supplier training and exchange events to continuously with all suppliers and procurement and external management

During the reporting period 100% of

improve suppliers' awareness and levels of quality control and sustainable personnel signing integrity agreements and regularly conducts Gree's procurement personnel completed

development. anti-corruption and anti-bribery education and training for training on sustainable procurement.procurement and external management personnel solidifying a

foundation of business ethics.

682023 ESG Report

Contractor Management

To ensure that the new construction expansion and alteration projects are completed on schedule and with quality and quantity Gree

always adheres to a high standard of contractor management and executes the whole process of control from planning budgeting Conflict Mineral Management

bidding to construction and acceptance.Gree strictly does not tolerate any involvement in or incitement

For potential engineering contractors departments such as the Company's Infrastructure Office conduct on-site audits to systematically of human rights abuses or environmental degradation due to

assess construction quality and operational safety. Only those who pass the audit are included in the contractor database. Construction armed conflicts. To this end the Company has formulated a strict

contracts signed with contractors include an integrity agreement and clauses related to the contractor's environmental and social conflict minerals policy and management system in compliance

responsibilities such as not using equipment that pollutes the environment managing dust emissions and requiring construction personnel with domestic and international laws regulations and standards

to be certified. During the construction process the Infrastructure Office conducts weekly site inspections and mandates timely rectification such as the "Dodd–Frank Wall Street Reform and Consumer

of any issues found. Moreover the Company regularly organizes contractor training conducts quarterly evaluations of contractors and Protection Act" and "EU Conflict Minerals Regulation" of the US

promptly disengages those not meeting standards to strictly ensure project quality and safety. Securities and Exchange Commission as well as the "OECD

Due Diligence Guidance for Responsible Mineral Supply Chains

Case "Zero Safety Accident" initiative for infrastructure project from Conflict-Affected and High Risk Areas" and "Chinese Due

Diligence Guidelines for Minerals Supply Chains".In November 2023 the Company held the kickoff meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project" Gree commits to not purchasing or using minerals and raw

initiative issuing the corresponding action plan. Department leaders project engineering teams engineering technology teams materials directly or indirectly sourced from regions affected by

internal control teams project managers regional managers and infrastructure base managers participated both online and armed conflicts including but not limited to metals such as tin

offline. tantalum tungsten and gold. The Company requires suppliers

to adhere to this commitment confirming via written statements

During the initiative the Company focused on eliminating safety hazards and enhancing the safety assurance for frontline that their products supplied to the Company do not contain the

production staff. It required all units to actively conduct hazard identification and special management reinforce the implementation aforementioned conflict minerals. A traceability mechanism for

of the safety accountability system at all levels of the project advance the establishment of a safety culture prevent industrial raw materials is established and Gree's conflict mineral policy is

safety accidents rigorously and ensure that the annual safety control targets for projects are achieved. actively communicated to its suppliers.During the reporting period the Company conducted extensive

research on suppliers whose products might contain conflict

minerals. Out of more than 500 suppliers surveyed 45 were

confirmed to use metals such as tin tantalum tungsten and

gold and some suppliers have already declared in writing that

there are no risks of conflict minerals in their upstream supply

chains. Currently the Company is exploring the use of tools

provided by the Responsible Minerals Initiative (RMI) such as

the CMRT/CRT survey forms to regularly conduct due diligence

Kickoff meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project" initiative on suppliers for conflict minerals and to gradually introduce

requirements for conflict minerals compliance certification.

692023 ESG Report

Creating Extraordinary Products

with Craftsmanship

A company A company

A company

Product quality is crucial not only for consumer safety and health but without core without premium Business without innovation

also for the sustainable development of the Company. Gree has always philosophy technology is a products is a is a company

regarded product quality as the lifeblood of the enterprise forging perfect company without company without without a soul

quality with craftsmanship and contributing to the strategy construction of a backbone a future

"Country Strong on Quality" with its own actions.Quality Management System Gree's "Perfect Quality" management model diagram of "Made in China Loved by the World"

Gree continuously advances quality management reform by establishing a Made in China

comprehensive quality management system to deepen the construction of an Loved by the World

enterprise strong on quality. In recent years the Company has developed a

"Perfect Quality" management model of "Made in China Loved by the World" Perfect quality

centered around the "Five Steps to Quality Prevention" and the "D-CTFP

Quality Technology Innovation Cycle". The "D-CTFP Quality Technology R&D process Procurement Manufacturing Sales & service process process process

Innovation Cycle" has been successfully transformed into the national

standard GB/T 38356-2019 "Quality Management - Guideline for Customer- Target driven Integrated Guarantee

oriented Innovation Cycle" implemented since 2020. innovation prevention

5.Improvement optimization

The "Five Steps to Quality Prevention" promotes the quality plan positively Customer Process

with quality objectives encompassing demand research planning execution demand 1.C 4.P system 4.Inspection check

inspection and improvement to strictly control processes across R&D driven optimization 3.Implementation

procurement manufacturing and after-sales service eliminating quality issues Inspection Failure

before consumer use. The "D-CTFP Quality Technology Innovation Cycle" technology mechanism 2.Plan development2.T 3.F

is a reverse quality drive led by customer needs continuously driving quality driven research

technology innovation to meet customer demands through actions such as 1.Demand research

collection and analysis of customer needs (C) inspection technology drive (T) Feedback Support

failure mechanism research (F) and process system optimization (P) with

standards closing the loop. The two are interlocking and organically combined Target Organizational Technical Standard Information

to jointly promote the steady improvement of the Company's product quality. management system system system system

70

Internal and external2023 ESG Report

Quality Control Action

Case Held the national Quality Month improvement activities

Gree's pursuit of perfect quality has a starting point but The Quality Month improvement activity regularly held by Gree have become a hallmark quality brand event within

no end; and has standards but no limits. As early as the Company. By organizing regular quality month improvement activities Gree creates a strong quality atmosphere in

1995 the Company established a unique "Screening the Company strengthens employees' quality awareness in a subtle way and motivates employees to contribute to the

Factory" within the industry screening every component improvement of Gree's quality level.entering the factory to ensure they meet production

line standards. Since then a quality control system Quality Month improvement activities are organized annually by the Quality Control Department and led by the active

has evolved including the External Parts Management participation of subsidiaries production bases and branch factories with the aim of comprehensively enhancing the staff's

Department Screening Factory and Quality Control quality awareness and improving the quality level and jointly casting the enterprise's quality cornerstone to create a century-

Department of which the Quality Control Department old brand of Gree. Quality Month improvement activities are divided into three stages: mobilization and publicity activity

has set up 31 departments to strictly control the quality implementation and activity summary including quality culture atmosphere publicity quality thematic training quality

of the whole process of the Company's products. challenge activities and staff skills competition.For example household air conditioning products

undergo nearly a thousand rigorous quality inspection Seizing the opportunity of the Quality Month improvement activities Gree not only strengthens the quality and craftsmanship

procedures from component production to assembly to awareness of all employees but also enhances production and manufacturing process skills motivating all employees to

market distribution which increases year by year with contribute to quality improvements.the continuous improvement of the Company's quality

standards. Three stages of Gree Quality Month improvement activities

In recent years the Company has continuously

pushed product qual i ty upgrades wi th h igher

standards and stricter requirements leading to

continuous improvements in the first-pass yield

of product processes and a decline in post-sales

fault rates with customer satisfaction topping the Mobilization and promotion Activity implementation Activity summary stage

air conditioner industry rankings for 11 consecutive stage stage

years. The Company's projects such as "Disinfection Initiate the quality kick-off Conduct basic quality training Review the situation and

and Purification Technology and Product Application meeting Conduct quality critique summarize the outcomes

Based on CKER System" "Research and Application activities

of High-precision Maglev System" and "Research and Hold quality skills competitions

Application of PV Direct-drive Inverter Air Conditioning

System" have won many awards in international quality

innovation competitions.

712023 ESG Report

Case The "Find Faults Within" initiative Improving User Experience

To further enhance overall work quality Gree has launched the Gree strictly adheres to the "Law of the People's Republic of China on Protection of Consumer

"Find Faults Within" initiative across the Company departments Rights and Interests" the "Product Quality Law of the People's Republic of China" and the

and business processes. This init iative involves mutual "Provisions on the Liability for the Repair Replacement and Return of Some Commodities"

supervision and identification of deficiencies within and between and other laws and regulations. Based on these the Company continually develops and

units identifying deficiencies and organizing corrective actions to refines its management systems and operational standards for after-sales service. The In recent years

deepen quality management and accelerate the improvement of Company firmly upholds the service philosophy that "every minor detail for the user is a major the number of

business capacity and enterprise management level by solving matter for Gree" and persists in providing professional and meticulous pre-sale and post-sale complaints about

key and difficult problems. services to consumers and corporate customers. In recent years the number of complaints products or services

The "Find Faults Within" initiative focuses on market development about products or services has continuously decreased with the complaint resolution rate has continuously

product development efficiency improvement quality control maintaining 100% for several consecutive years. decreased with the

cost control safety management administrative management complaint resolution rate Moreover the Company's customer service adheres to the principle of "customer satisfaction"

system process optimization and other aspects of the specific regularly conducts customer satisfaction surveys and closely monitors customer evaluations maintaining

work extensively sorts and investigates problems and promotes 100%of the Company's products and services. Each month the Company extracts service order

the rectification and resolution of problems. for several consecutive satisfaction data from its self-developed cloud-based after-sales service platform and years.The "Find Faults Within" initiative is divided into four phases. annually employs third-party agencies to conduct customer satisfaction market research.Initially each unit conducts internal reviews and self-corrections

to collect all kinds of problems or suggestions raised by its

employees and the rectifying unit develops the corresponding

plan. Next the rectifying unit summarizes and organizes the "Find

Faults Within" feedback according to the devised plans conducts

cross-checks with upstream and downstream units to identify key

projects and designates responsible units to follow up and ensure

implementation. Subsequently each rectifying responsibility unit

completes the rectifications as per the milestone requirements

with the initial acceptance conducted by the rectifying unit. Finally

a joint acceptance team consisting of the Business Management

Department Quality Control Department and others performs

the acceptance check and evaluation of the work of the rectifying

units and their respective responsible units.Under the spirit of the "Find Faults Within" initiative Gree

actively identifies and resolves quality issues optimizes quality

management mechanisms and vigorously promotes employee

participation in quality improvement efforts continuously

advancing quality enhancement.

722023 ESG Report

In the 2023 customer satisfaction survey of thirteen product categories released by the Customer Customer Service Management System

Satisfaction Measurement Center of the China National Institute of Standardization Gree ranked first in

the air conditioning category and received high praise from consumers in aspects such as brand image In 2005 Gree was the first in the industry to propose and implement a policy of "six years of free

cost-effectiveness degree of needs satisfaction product reliability and service quality. This marks comprehensive warranty for household air conditioners" which far exceeds the national legal warranty

the twelfth consecutive year since 2011 that the Company has received this honor demonstrating its period. Since 2021 the Company has further advanced this policy to "ten years of free comprehensive

unwavering commitment to the quality of customer service. warranty for household air conditioners" currently the longest warranty period in China's household air

Customer satisfaction ranking of air conditioning products conditioning industry.Customer satisfaction score Additionally Gree continuously improves its customer service management system ensuring high-

84 quality service with meticulous management. After years of exploration and practice the Company

83 83 has established a three-tier customer service management system comprising the headquarters

82 82 sales companies and service outlets. The Company's customer service network covers the entire

81 nation. By the end of the reporting period there were 31 regional sales companies (i.e. regional

customer service centers) overseeing more than 12000 service outlets at the first second and third

levels with over 100000 frontline service personnel. Each level of service outlet must pass a dual

Gree Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 review by the headquarters and regional sales companies to receive service certification authorization.During service provision the service personnel strictly implement the "Installation Specifications

During the reporting period the Company also received several major honors in the customer service for Household and Similar Air- conditioning" (GB17790-2008) "Full-process Manual for After-sales

field including the "National Standard Five-Star After-sales Service Enterprise" from the National Maintenance of Gree's Household Air Conditioner" "Full-process Manual for After-sales Installation

Commodity After-Service Conformity Certification Evaluation Committee the "Top 10 National After- of Gree's Household Air Conditioner" and other national and corporate standards to carry out the

sales Service" from the National Commodity After-sales Service Compliance Certification Agency and services such as installation cleaning maintenance repair and removal of the machine.the "2022 Brand Example Enterprise in the Chinese Refrigeration and Air Conditioning After-market

Regulation Service Industry" from the China Refrigeration and Air-Conditioning Industry Association. The

Company also received letters of thanks from customers such as the Shanghai Nuclear Engineering

Research and Design Institute's Model Project No. 1 Shulan (Anji) Hospital Co. Ltd. and Fujian Fuqing The Company's customer service network

Nuclear Power Co. Ltd.covers the entire nation. By the end of

the reporting period there were 31

regional sales companies (i.e. regional

customer service centers) overseeing

more than 12000 service outlets

at the first second and third levels with

over 100000 frontline service

personnel.Gree's after-sales service capabilities received a five- Significant honors received by Gree in the Gree's after-sales service system

star rating under the GB/T27922-2011 "Evaluation customer service field during the reporting period achieved a twelve-star (exceptional)

System for After-sales Service of Commodity" certification

732023 ESG Report

Customer Information Confidentiality System

While advancing the informatization and intelligentization of customer service Gree places high

importance on the confidentiality of customer information to ensure that customer information

handling is lawful and compliant and effectively protect customer rights and interests. During the

reporting period the Company newly formulated the "Measures for Administration of User Privacy

Protection" and actively carried out the ISO/IEC 27701:2019 Privacy Information Management

System certification and as disclosed in this report the Company has obtained such certification.When customers submit requirements through any of

Gree's public information communication channels

To ensure close contact with customers and promptly address their needs Gree has they can read the customer privacy protection policy

established dedicated channels such as hotlines e-mail and letters and has designated implemented by the Company. The Company encrypts

areas on its WeChat official account and online store platforms to accept customer inquiries and backs up sensitive customer information and other

installation and repair requests complaints and suggestions in real time. After acceptance important data offsite and extensively uses network

customer service information is entered into the Company's cloud-based after-sales service security equipment or systems such as firewalls gateways

platform triggering the corresponding after-sales service response mechanisms. WAF endpoint security control antivirus threat perception

code scanning vulnerability scanning SDP and security

For instance once a work order is created on the cloud-based after-sales service platform sandboxes. Additionally the Company employs a large

it is assigned to frontline service personnel through sales centers and service outlets with number of network security professionals to formulate

acceptance SMS appointment SMS and rescheduling SMS pushed to the client side. The security strategies analyze alerts conduct penetration

Company requires service outlets to contact the customer within two hours to schedule a visit testing and emergency drills on critical business systems

and typically household air conditioner repairs are completed within 24 hours. After repairs annually and promptly identify and block vulnerabilities.the cloud-based after-sales service platform sends a completion satisfaction SMS and the Moreover the Company also regularly conducts information

Company monthly evaluates the service quality of service providers based on customer security training to continuously strengthen and enhance

feedback notifying and mandating rectification for those failing the evaluation. Additionally the the employees' awareness and level of protecting customer

cloud-based after-sales service platform also facilitates the collection monitoring and analysis information. No incidents of customer privacy infringement

of after-sales data. Through big data analysis the Company has developed the installation and or customer information loss have occurred.repair demand prediction models enabling more rational and intelligent allocation of service

personnel and tools thereby making customer service more precise and efficient.

742023 ESG Report

After-sales Service Model of the Company's after-sales talent training system

Talent Training

Headquarters resources

A professional after-sales service team is essential

for maintaining customer satisfaction and the

brand's high-quality reputation. Gree continuously

perfects its after-sales talent training system Leading promotion Operation supervision

with a focus on customer needs and business

development. It builds its training system team System construction System operation

instructors courses and platforms through learning

project design innovation deepening training

models and mechanisms linking management Training Training management Training instructor Training course Hardware Demand Training Training Effectiveness Incentive

benefits enhancement and promoting talent system team system system system platform system research program implementation evaluation improvement

training upgrades thus constructing a diversified After-sales training

autonomous after-sales talent training mechanism. management method

In 2023 after-sales talent

training activities were orderly

carried out in combination

with the Company's diverse

product demands overseas

customer training needs and

after-sales training system

construction needs following

the development directives of

the refrigeration industry with

500000 Incentive implementation Training implementationover training

instances conducted throughout

the year.Sales company resources

75

Continuous improvement and enhancement

Incentives for assessment results

Key performance indicators

Outcome level assessment

Behavioral level assessment

Learning level assessment

Response level assessment

Level 2/3 training

Level 1 training

Interim training program

Quarterly training program

Annual training program

Special demand research

Annual demand study

Hardware platform improvement

Hardware platform management

Hardware platform operation

Hardware platform construction

Key products

After-sales rectification

Skill enhancement

Induction training

Lecturer motivation

Lecturer appointment

Lecturer training

Lecturer selection

After-sales network management team

Sales company management team

Headquarters management team

Learning platform management method

After-sales course management method

After-sales instructor management method2023 ESG Report

Case The Company conducted the 9th "Journey to Excellence · Case Gree conducted the 2023 "Ever Vigilant Safety First" after-sales Building the Future" after-sales technical training camp safety education series of activities

With the purpose of "Linking Training Innovation Mechanisms and Integrating Resources for From April to May 2023 as the peak season for after-sales services approached the Company

Targeted Training" this training camp kicked off at 41 sites across 18 regions including 16 in the organized the "Ever Vigilant Safety First" special after-sales safety education activities

commercial segment 17 in the household segment and 8 in the household electric appliances strengthening the safety awareness and skills of customer service employees through safety

segment completing over 50000 training instances meeting the personalized training needs of promotions safety courses and safety skills competitions. Moreover safety supervision

different sales companies solidly advancing the cultivation of highly skilled talents and building inspections were conducted through a three-tier linkage mechanism led by the headquarters

a team of professionals who are rigorous innovative and committed to excellence. guided by sales companies and implemented at service points to identify and rectify safety risks

fully implementing safety responsibilities not only safeguarding the safety of frontline service

personnel but also protecting the safety of customers."Journey to Excellence · Building the Future" training camp Gree conducted the 2023 "Ever Vigilant Safety First" after-sales safety education series of activities

Case The 3rd "Gree Cup" Commercial Service Skills Competition

In March 2023 Gree held the third "Gree Cup" Commercial Service Skills Competition with representatives from 31 regional

sales companies across the country participating. The Company invited members from professional associations such as the

Refrigeration and Air Conditioning Engineering Committee of China Refrigeration and Air-Conditioning Industry Association and

Sichuan Association of Refrigeration as well as teachers from Southwest Jiaotong University and Chengdu Textile College to

serve as judges and guests.The Competition was divided into installation and maintenance categories. The installation competition utilized standardized

auxiliary material packages throughout the process to better reflect the details of the installation work. The maintenance

competition set up faults in air conditioning equipment that were in normal use at the practical base fully testing the contestants'

ability to handle issues quickly in real scenarios. Additionally this Competition was the first to implement live electrical operations

throughout the process further testing the contestants' skills and psychological quality. The teams demonstrated solid service

skills during the intense competition highlighting the outstanding brand image of Gree's customer service. Intense Service Skills Competition site

762023 ESG Report

Sticking to Responsible Promoting the Healthy Development of the Industry

Marketing Concept

As a representative of Chinese manufacturing enterprises Gree continues to drive innovation and set standards actively participating in

Gree has always adhered to marketing and sales practices that industry exchanges to foster industry optimization and upgrading. In the transition from "Made in China" to "Created in China" Gree is

comply with the "Advertising Law of the People's Republic of China" committed to changing the world with its core technologies and serving the world with high-quality products making the products made

and other legal regulations industry standards and social ethical in China loved by the world.norms. The Company engages in honest accurate and scientifically

factual communication with customers strictly prohibiting any false

or misleading promotions. All marketing practices of the Company

undergo a three-level review process by the respective Technology Leading Standard Strategy

Department Legal Department and IP Department to ensure

that marketing activities and content are neither exaggerated nor

infringe on IP rights. Furthermore the Company actively conducts Gree implements a "Leading Standard" strategy oriented towards

customer education initiatives to enhance customers' abilities to consumer needs and social responsibility taking international and

evaluate and compare different products thereby guiding them national standards as thresholds and consumer demands as the

towards making rational and responsible purchasing decisions. The highest benchmark. The Company continually pioneers on the path

Company also strives to provide products and services that benefit of standardization leading the enterprise and industry towards high-

society and the environment. quality development and contributing to the sustainable development

of all humanity.Internally the Company has established a Technical Standards

Case Rejecting "Fancy Marketing Tricks" to Committee and a Standard Management Department with nearly purify customer service environment a thousand full-time and part-time standardization employees.In recent years some household appliance brands and Standards permeate all processes from design and development

merchants have exploited consumers' unclear understanding procurement management manufacturing to after-sales installation

of the concepts of "warranty" and "guarantee" falsely and repair requiring compliance in all aspects. Externally combining

promoting "free repairs" while engaging in unnecessary its advanced and core technologies the Company actively leads or

repairs major repairs for minor issues substituting inferior participates in the setting of standards.parts and non-transparent pricing. Gree has established the

"Charging Standards for Maintenance and Services Outside By the end of the reporting period Gree has authored or contributed

the Warranty Period" to strictly regulate uniform charges for to 831 international national industry local and group standards

after-sales services and established a service supervision adding 69 new standards during the reporting period alone.department to rigorously address any fabricated faults or The Company also actively undertakes or participates in as

fraudulent charges by service providers and personnel many as 140 standardization organizations in the domestic and

striving to maintain market order and protect customer rights international household appliance industry including 37 international

effectively. organizations and holds 38 expert positions in organizations such

as the International Organization for Standardization (ISO) and the

International Electrotechnical Commission (IEC).

772023 ESG Report

Gree also serves as the only industry representative at China's WTO/TBT-SPS National Notification Center for Refrigeration Equipment Research and Evaluation leveraging its technological advantages to represent

China in reviewing international technical standards and regulations. By the end of the reporting period the Company participated in the revision of the American and Canadian national standards for air conditioner

electrical safety as well as the setting of standards in key "Belt and Road" countries such as Brazil and Laos. By projecting "China's voice" on the international standards stage and timely transmitting China's new

concepts and technologies abroad Gree promoted Chinese brands internationally achieving "standards go global" to drive "products go global".During the reporting period Gree achieved the following results in standardization construction:

Led the formulation of IEC 63349-1 "Photovoltaic Direct-Drive Served as the vice-chair of the domestic counterpart unit for Selected as one of the first batch of national standard

Appliance Controllers - Part 1: General Requirements" and IEC/TC59/SC59N (IEC Technical Committee on Performance verification points undertaking the national standard

also led the establishment of six ISO international standards of Household and Similar Electrical Appliances Subcommittee verification work for energy-saving refrigeration equipment

including multifunctional heat pump water heaters and on Electric Air Cleaners for Household and Similar Uses) and being the only enterprise selected in the refrigeration

refrigeration compressors all of which have been successfully being the first household appliance manufacturer among over industry

initiated and are expected to be released post-2025 200 IEC domestic counterpart units

Chairman Dong Mingzhu was honored with the highest national standardization award - the The research and evaluation base for technical trade measures for refrigeration equipment

"China Standard Innovation Contribution Award" for Outstanding Contribution (2022) being passed the annual assessment of the General Administration of Customs and was rated as one

the only entrepreneur to receive this award during the year of the five outstanding evaluation bases in China

Consistently ranked in the "Leader in Enterprise Standards" list for six consecutive years 11 corporate standards were shortlisted for the 2023 "Leader in Enterprise Standards" list guided

leading the industry in corporate standards for the past four years accumulating a total of 88 by the National Development and Reform Commission and the State Administration for Market

"Leader in Enterprise Standards" certificates leading the household appliance industry Regulation and selected by a third-party organization leading the household appliance industry

in the number of standards shortlisted

782023 ESG Report

Case Gree hosted the "2023 Zhuhai · International Standardization

Industry Exchange and Cooperation

Conference"

On May 26 2023 Gree successfully hosted the "2023 Zhuhai · International Gree values exchanges and communications with global peers actively joining industry organizations

Standardization Conference" themed "Standards Lead High-Quality Development · participating in industry expos engaging in industry seminars and co-editing industry white papers.Innovation Empowers Manufacturing". The Conference was attended by 21 foreign While demonstrating and leveraging the Company's technical advantages and innovation capabilities

experts from nine countries including the USA Germany the UK Switzerland India as an industry-leading brand Gree also learns from the advanced concepts and experiences of industry

Brazil Saudi Arabia Bangladesh and Japan and over 200 representatives from peers tirelessly striving to make the world love "Made by China" and "Made by Gree".standard certification and testing institutions standardization organizations universities

and industrial chain enterprises. The event aimed to share international standardization Gree's positions in industry associations (partial)

practices and explore ideas for green high-quality and innovative development in

manufacturing supporting Chinese standards in gaining global recognition. International level National Level

Chair of the Subcommittee on Refrigeration Vice Chair Unit of the China

Compressor Testing and Evaluation ISO Machinery Industry Federation

Committee on Refrigeration and Air Conditioning

Technologies ISO/TC86/SC4 Vice Chair Unit of the China

National Light Industry Council

Chair of the Low Voltage DC Technology

Subcommittee IEEE PES DC Power Systems Vice Chair Unit of the China

Technology Committee (China) Energy Conservation Association

2023 Zhuhai · International Standardization Conference scene

792023 ESG Report

During the reporting period Gree participated in various industry

seminars such as the International Standardization Conference the Case Leading the development of international standards! The 12th General Assembly of ISO/

Annual Conference of 2023 Chinese Association of Refrigeration TC 86/SC 4 held successfully in Zhuhai

the 2023 China Heat Pump Forum and the Appliance Science &

Technology Conference and its core products and technologies On May 25 2023 the Subcommittee for Refrigeration Compressors of ISO/TC 86/SC 4 convened its 12th General Assembly

have appeared in the major exhibitions both domestically and attended by domestic and international experts and representatives. Dong Mingzhu Chairman and President of Gree

internationally such as the 2023 Air-Conditioning Heating participated in the meeting as the Chair of the Subcommittee ISO/TC 86/SC 4 and delivered a speech. Participants at the

Refrigerating Expo (AHR) the 34th International Exhibition For meeting shared their insights and suggestions in the field of refrigeration compressor standards.Refrigeration Air-Conditioning Heating and Ventilation Frozen

Food Processing Packaging and Storage (China Refrigeration

Expo) the 133rd China Import and Export Fair (Canton Fair) the

2023 Appliance & Electronics World Expo and the 2023 China

International Machine Tool Show.Gree featured at the 2023 Air-Conditioning Heating Refrigerating Expo

under the theme "Gree: Heat Pump Specialist"

Gree launched a new product - industrial large capacity high-temperature

centrifugal heat pump at the 34th International Exhibition for Refrigeration

Air-Conditioning Heating and Ventilation Frozen Food Processing

Packaging and Storage

802023 ESG Report

Key Performance Wastewater discharge

Economic performance Index Unit 2021 2022 2023Total wastewater discharge m3 2969426.34 3042655.05 3526745.37

Chemical oxygen demand

Index Unit 2021 2022 2023 (COD) mg/L 79.37 79.01 76.56

Total operating revenue CNY '0000 18965403.35 19015067.25 20501812.38 Five-day bod (BOD5) mg/L 28.45 30.84 32.68

Net profit attributable to Suspended matter mg/L 29.15 23.11 22.60

shareholders of listed companies CNY '0000 2306373.24 2450662.38 2901738.76

Ammonia nitrogen mg/L 7.36 7.51 8.00

Total Cash Dividends (tax included) CNY '0000 1661003.32 1122768.32 1314222.59

Total phosphorus mg/L 0.94 1.01 1.16

Cash dividend for every 10 shares CNY 30.00 20.00 23.80

pH - 7.52 7.57 7.54

Environmental performance

Waste gas emission

Greenhouse gas emissions

Index Unit 2021 2022 2023

Index Unit 2021 2022 2023

Total waste gas 3

Direct (scope 1) Ton of CO2 836414 709422 726654 emissions

m 35195892237.12 28284810418.03 28114666183.08

Greenhouse gas emissions equivalent

Particles mg/m3 6.81 5.40 5.52

Energy indirect (scope 2) Ton of CO2

greenhouse gas emission equivalent 830758 740658 587784 Non-methane 3

hydrocarbon mg/m 4.95 8.49 6.11

Ton of CO2

Ton of CO equivalent/ equivalent/ Nitrogen oxides mg/m

323.5618.3217.55

Emission intensity 2 0.088741 0.076729 0.064113 Emission intensity CNY10000 0.088741 0.076729 0.064113CNY10.000 revenue 3

revenue Sulfur oxide mg/m 4.76 4.31 4.79

Greenhouse gas emissions directly VOC emissions mg/m

33.433.455.20

reduced as a result of emission Ton of CO2equivalent 153594 113088 566831reduction initiatives

Water resources utilization

Waste emission

Index Unit 2021 2022 2023

Index Unit 2021 2022 2023 Purchased municipal water m3 10324508.00 9374763.00 10191754.00

Total general solid wastes Ton 392865.20 323848.72 466865.10

Total hazardous waste Ton 19448.15 15375.74 17571.34 Index Unit 2021 2022 2023

Total electronic waste Kg 1424536.35 1016992.83 1010240.31 Number of incidents resulting

Total amount of electronic waste from violations of environmental / 0 0 0

recycled Kg 4903.32 2744.42 8226.06 protection laws and regulations

812023 ESG Report

Social performance

Employee composition Employee volunteer activity

Index Unit 2021 2022 2023 Index Unit 2021 2022 2023

Total number of employees Person 81884 72380 72610 Number of participants in

employee volunteer activities Person-times 96 1140 113

By gender

Average time spent on employee

Male Person 58129 50829 51923 volunteer activities h/person 0.60 0.48 0.73

Female Person 23755 21551 20687

By educational background Intellectual property and innovation

Bachelor's Degree and Above Person 17274 16893 16507 Index Unit 2021 2022 2023

Associate Degree Person 13095 11999 12894 R&D investment CNY 6528680942 6429702080 7006497353

Secondary School Graduates

and Below Person 51515 43488 43209 Number of patents owned (authorized) PCS 52951 61601 68055

By professional composition category Number of invention patents

owned (authorized) PCS 13087 16159 19568Production staff Person 59973 51931 50292

Administrative staff Person 3610 3344 3393 Annual number of new patents (authorized) PCS 9425 8650 6454

Sales staff Person 2964 3002 2528 Number of patents under

examination PCS 32439 32806 33845Financial staff Person 1104 1126 1115

Technical staff Person 14233 12977 15282 Number of copyrights owned PCS 15 10 12

Product responsibility and services

Index Unit 2021 2022 2023

Complaint resolution rate % 100 100 100

822023 ESG Report

Index of Indicators

SZSE Content Index

Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed on the Main Board (2022)

Term and Disclosure Sections of the Report Term and Disclosure Sections of the Report

8.1 Overview Introduction 8.7: (2) Total Annual Resource Consumption Promoting Green Development Throughout the Life Cycle

8.7: (3) Environmental Investment and Environmental Deepening the Implementation of Environmental Solidifying Corporate Governance Technology Development Management

8.2 Business Principles Improving Compliance and Risk Control System

Standardizing Business Ethical Behavior 8.7: (4) Pollutant Discharge Management Promoting Green Development Throughout the Life Cycle

Standardizing Business Ethical Behavior 8.7: (5) Construction and Operation of Environmental Protection Facilities Promoting Green Development Throughout the Life CycleDeepening the Implementation of Environmental Management

8.3 Social Responsibility Strategic Planning and Working Improving the Innovative R&D System

8.7: (6) Waste Treatment Disposal Recycling and Mechanism Safeguarding the Legitimate Rights and Interests of Employees Comprehensive Utilization of Waste Products Promoting Green Development Throughout the Life Cycle

Empowering Employees' Career Growth

Bravely Assuming Corporate Social Responsibility 8.7: (9) Other Voluntary Disclosures Actively Implementing Green Actions

8.4 Disclosure of Social Responsibility Report Overview 8.8 Environmental Policy Implementation and Corrective Measures Deepening the Implementation of Environmental Management

Safeguarding the Legitimate Rights and Interests of Employees

8.9 Environmental Information Disclosure Deepening the Implementation of Environmental 8.5 Protection of Employees' Rights and Interests Safeguarding the Health and Safety of Employees Management

Enhancing Diversified Wellbeing of Employees

Product Safety Laws Regulations and Industry

Compliance with Environmental 8.10: (1) Standards Creating Extraordinary Products with Craftsmanship

8.6: (1) Protection Laws Regulations and Deepening the Implementation of Environmental Management

Industry Standards Promoting Green Development Throughout the Life Cycle 8.10: (2) Production Environment and Process Creating Extraordinary Products with Craftsmanship

Product Quality and Safety Guarantee Mechanism

8.6: (2) Environmental Protection Plan Promoting Green Development Throughout the Life Cycle 8.10: (3) and Accident Emergency Plan Creating Extraordinary Products with Craftsmanship

8.6: (3) Use of Natural Resources Promoting Green Development Throughout the Life Cycle 8.10: (4) Other Production and Product Safety Responsibilities Creating Extraordinary Products with Craftsmanship

Employee Management System and Measures for

8.6: (4) Pollutant Disposal Promoting Green Development Throughout the Life Cycle 8.11: (1) Handling Non-compliance Safeguarding the Health and Safety of Employees

Pollution Prevention and Control 8.11: (2) Prevention of Occupational Hazards and Related 8.6: (5) Facilities Promoting Green Development Throughout the Life Cycle Safety Measures

Safeguarding the Health and Safety of Employees

8.11: (3) Employee Training Empowering Employees' Career Growth

8.6: (7) Supply Chain Environmental Safety Building A Responsible Supply Chain

8.11: (4) Other Responsibilities for Protecting Employee Rights Safeguarding the Legitimate Rights and Interests of

Other Environmental Protection and Interests Employees8.6: (8) Responsibilities Actively Implementing Green Actions 8.12 Code of Scientific Ethics Improving the Innovative R&D System

8.7: (1) Environmental Protection Policy Deepening the Implementation of Environmental Management 8.13 Content of Social Responsibility Report Full ReportObjectives and Effectiveness

832023 ESG Report

GRI Standards Index

Instructions for Use Gree reported in accordance with the GRI standards during the period from January 1 2023 to December 31 2023.Use of GRI 1 GRI1: Foundation 2021

GRI GRI

Standards Disclosed item Chapter Index Standards

Disclosed item Chapter Index

GRI 1: Foundation 2021 GRI 203: Indirect Economic Impacts 2016

GRI 2: General Disclosures 2021 203-1 Infrastructure investments and services supported Bravely Assuming Corporate Social Responsibility

2-1 Organizational details About Gree GRI 205: Anti-corruption 2016

2-2 Entities included in the organization's sustainability reporting Overview

205-2 Communication and training about anti-corruption policies and procedures Standardizing Business Ethical

2-3 Reporting period frequency and contact point Overview Behavior

GRI 301: Materials 2016

2-6 Activities value chain and other business relationships About Gree

Promoting Green Development

2-7 Employees Upholding People-oriented for A

301-2 Recycled input materials used Throughout the Life Cycle

Better Life

Promoting Green Development

2-9 Governance structure and composition Solidifying Corporate Governance 301-3 Reclaimed products and their packaging materials Throughout the Life Cycle

2-10 Nomination and selection of the highest governance body Solidifying Corporate Governance GRI 302: Energy 2016

2-12 Role of the highest governance body in overseeing the management of impacts Solidifying Corporate Governance 302-1 Energy consumption within the organization

Promoting Green Development

Throughout the Life Cycle

2-13 Delegation of responsibility for managing impacts Solidifying Corporate Governance 302-4 Reduction of energy consumption Key Performance

2-14 Role of the highest governance body in sustainability reporting ESG Management GRI 303: Water and Effluents 2018

2-16 Communication of critical concerns ESG Management 303-1 Interactions with water as a shared resource Promoting Green Development Throughout the Life Cycle

2-19 Remuneration policies Empowering Employees' Career Growth 303-2 Management of water discharge-related impacts Promoting Green Development Throughout the Life Cycle

2-20 Process to determine remuneration Solidifying Corporate Governance

303-4 Water discharge Promoting Green Development

2-23 Policy commitments Improving Compliance and Risk

Throughout the Life Cycle

Control System 303-5 Water consumption Key Performance

2-27 Compliance with laws and regulations Standardizing Business Ethical GRI 305: Emissions 2016Behavior

305-1 Direct (Scope 1) GHG emissions Key Performance

2-28 Membership associations Promoting the Healthy Development of the Industry 305-2 Energy indirect (Scope 2) GHG emissions Key Performance

2-29 Approach to stakeholder engagement ESG Management 305-5 Reduction of GHG emissions Key Performance

GRI 201: Economic Performance 2016 305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air Promoting Green Development emissions Throughout the Life Cycle

201-1 Direct economic value generated and distributed About Gree

GRI 306: Effluents and Waste 2020

201-3 Defined benefit plan obligations and other retirement plans Enhancing Diversified Wellbeing of Employees 306-2 Management of significant waste-related impacts Promoting Green Development Throughout the Life Cycle

842023 ESG Report

GRI

Standards Disclosed item Chapter Index

GRI

Standards Disclosed item Chapter Index

306-3 Waste generated Promoting Green Development GRI 404: Training and Education 2016Throughout the Life Cycle

306-5 Waste diverted from disposal Promoting Green Development 404-2 Programs for upgrading employee skills and transition assistance programs

Empowering Employees' Career

Throughout the Life Cycle Growth

GRI 308: Supplier Environmental Assessment 2016 GRI 405: Diversity and Equal Opportunity 2016

308-1 New suppliers that were screened using environmental criteria Building A Responsible Supply 405-1 Diversity of governance bodies and employees Solidifying Corporate GovernanceChain

GRI 401: Employment 2016 GRI 413: Local Communities 2016

401-2 Benefits provided to full-time employees that are not provided to temporary Enhancing Diversified Wellbeing Operations with local community engagement impact assessments and Bravely Assuming Corporate or part-time employees of Employees 413-1 development programs Social Responsibility

GRI 403: Occupational Health and Safety 2018 GRI 414: Supplier Social Assessment 2016

403-1 Occupational health and safety management system Safeguarding the Health and 414-1 New suppliers that were screened using social criteria Building A Responsible Supply Safety of Employees Chain

403-2 Hazard identification risk assessment and incident investigation Safeguarding the Health and Safety of Employees GRI 416: Customer Health and Safety 2016

403-5 Worker training on occupational health and safety Safeguarding the Health and 416-1 Assessment of the health and safety impacts of product and service Creating Extraordinary Products Safety of Employees categories with Craftsmanship

403-6 Promotion of worker health Safeguarding the Health and GRI 417: Marketing and Labeling 2016Safety of Employees

403-7 Prevention and mitigation of occupational health and safety impacts directly Safeguarding the Health and 417-1 Requirements for product and service information and labeling

Improving the Innovative R&D

linked by business relationships Safety of Employees System

403-9 Work-related injuries Safeguarding the Legitimate Rights and Interests of Employees

85