Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

About This Report

This report is the third Environmental Social and Governance (ESG) report released by Gree Preparation Basis

Electric Appliances Inc. of Zhuhai. It focuses on the Company's proactive response to the

opportunities and challenges of sustainable development as well as its efforts to create Prepared in accordance with the Standards for Sustainability Reporting (GRI Standards) of the Global

integrated economic social and environmental value for stakeholders. Reporting Initiative (GRI) the United Nations Sustainable Development Goals (SDGs) the Self-Regulatory

Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial

Implementation) and the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock

Scope of the Report Exchange—Compilation of Sustainability Report this report also addresses the key topics covered by MSCI

ESG Ratings.Unless otherwise stated the organizational scope of this report covers Gree Electric

Appliances Inc. of Zhuhai and its subsidiaries and branches.Data Sources

The qualitative and quantitative information contained in this report is derived from the public

Time Period disclosures internal documents and relevant statistical data of Gree Electric Appliances. The

disclosure scope is consistent with the scope of the consolidated financial statements. Any content

The report covers the period from January 1 to December 31 2025. To enhance the that differs from this scope will be clearly explained in the report. Unless otherwise specified all

comparability and completeness of the report appropriate retrospective or extended monetary amounts in the report are denominated in Renminbi (RMB).disclosure is applied to certain information.Access to the Report

Appellation Notes

The electronic version of this report is available on the Company's official website (http://www.gree.For the convenience of presentation "Gree Electric Appliances Inc. of Zhuhai" is referred to com.cn/) the website of the Shenzhen Stock Exchange (http://www.szse.cn/) and CNINFO (www.as "Gree Electric Appliances" "GREE" "the Company" or "we" in this report. cninfo.com.cn).

01About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Message from the Management The Company promotes green collaboration across the industrial chain and actively fulfills corporate social responsibilities. During the reporting period the Company has continuously advanced the coordinated improvement

of sustainable development capabilities along the industrial chain and has built a safe resilient green and

sustainable industrial ecosystem. Meanwhile the Company actively engages in social welfare undertakings. In

Against the backdrop of accelerated global green transition in 2025 guided by the vision of "Building a response to emergencies such as the earthquake in Tingri County Xigaze City Xizang and the fire at Wang Fuk

World-Class Enterprise and Making GREE a Century-Old Brand" and the mission of "For the Clearer Sky Court in Tai Po Hong Kong the Company made emergency donations of materials and funds and responded

and Greener Earth" Gree Electric Appliances integrates the philosophy of sustainable development into swiftly to post-disaster reconstruction work. It has grown into a trusted key force in society.its corporate culture and drives transformation through independent innovation. Over the past year the

Company has carried out extensive ESG practices and has achieved remarkable results which would not We implement the dual-carbon strategy further advance green transformation and consolidate

have been possible without the diligent efforts of all employees the long-term commitment of investors the foundation for ecological sustainable development.the collaborative progress of partners and the understanding and support from all sectors of society. We Faced with the challenges of global climate change the Company incorporates green and low-carbon

hereby extend our sincerest gratitude to all parties concerned. development into its corporate strategy builds a circular development model across the entire industrial chain

and undertakes ecological and environmental responsibilities with concrete actions. As of the end of the

reporting period the Company has operated 22 green factories (including 10 national-level green factories)

We improve corporate governance respond to investors' concerns and consolidate the and 6 national-level green supply chain enterprises.foundation for the enterprise to achieve steady and sustainable long-term development.In terms of product R&D centering on energy conservation emission reduction and green transformation

The Company standardizes the operation of the Board of Directors to consolidate the foundation for compliant

the Company continuously promotes the implementation of technologies in fields such as product energy

operation. During the reporting period the Company has continuously optimized the operational mechanism

efficiency improvement system-level energy saving and low-GWP refrigerant replacement. The Company has

of the Board of Directors revised the Articles of Association and relevant internal management systems

successively overcome technical bottlenecks including "1Hz inverter" and "permanent-magnet synchronous

strengthened compliance and risk management and solidified its business foundation. Directors performed

inverter". It also integrates air conditioning technology with photovoltaic and energy storage technologies and

their duties diligently and faithfully with standardized and transparent decision-making procedures and the

launches zero-carbon source air conditioning technology. During the reporting period leveraging the research

attendance rate of Board meetings stood at 100%.achievements on "key technologies for wide-range high-efficiency AI multi VRF systems" the Company's

The Company strengthens investor communication to enhance corporate governance transparency. Gree products realize real-time energy efficiency perception and dynamic regulation and have won the Special

Electric Appliances has maintained Grade A in the annual information disclosure assessment of the Shenzhen Prize for Scientific and Technological Progress in Energy Conservation and Emission Reduction from the

Stock Exchange for five consecutive years. Meanwhile during the reporting period the Company has China Energy Conservation Association.responded to 522 inquiries on the SZSE Interactive Easy Platform ranking first in the home appliance industry

In terms of industrial chain layout the Company earnestly implements the Extended Producer Responsibility

in terms of response volume. It has organized on-site investor visits to leading smart factories and other

(EPR) system and establishes a closed-loop system covering "R&D – Production – Sales – Recycling –

projects transparently and intuitively showcasing the achievements of intelligent manufacturing and innovation

Regeneration". As of the end of the reporting period the Company has set up 6 renewable resource bases

in China. It effectively addresses investors' concerns to provide strong support for long-term value creation. nationwide and has created an integrated service model of "delivering new products and recycling old ones".By virtue of the full-industry-chain closed-loop model it drives the green and circular development of the

We uphold the people-oriented principle deepen industrial chain collaboration and pool joint

home appliance industry. During the reporting period the Company has been awarded the title of "2025 EPR

efforts for sustainable development.Responsibility Fulfillment Innovation Pioneer Enterprise".The Company attaches importance to employee care and development to realize the common growth of

employees and the enterprise. In terms of employee care the Company provides staff dormitories with a Looking ahead Gree Electric Appliances will always adhere to the mission "Made in China Loved by the

comfortable environment and complete supporting facilities and runs GREE School to resolve the schooling World" uphold innovation-driven and green development and continuously enhance its core competitiveness

issue of employees' children. In terms of employee growth the Company offers AI-enabled training to support and sustainable development capabilities.the joint development of employees and the enterprise.

02About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

About Gree Electric Appliances

Gree Electric Appliances Inc. of Zhuhai is a diversified technology- Research Center a National Industrial Design Center a National Enterprise for Quality for seven consecutive years and has topped the China

driven global industrial group. It owns brands including GREE TOSOT Technology Center and a Robotics Engineering Technology R&D Center. National Institute of Standardization's customer satisfaction assessment

KINGHOME Landa Kaibang and Xinyuan with an industrial layout It serves as a research and evaluation base for refrigeration equipment for air conditioning products for sixteen consecutive years securing dual

covering both consumer and industrial sectors. At present GREE products by the National Notification and Enquiry Center as well as a national recognition from the market and industry authorities.serve more than 190 countries and regions worldwide. The Company standard verification point for energy-efficient refrigeration equipment. As

adheres to serving users with core technologies and high quality of the end of the reporting period the Company has filed a cumulative In terms of channels the Company deepens an efficient and collaborative

continuously meeting people's aspirations for a better life. total of 138935 patent applications including 76928 invention patent network. The Company is committed to building a self-controlled

applications with 32317 granted. It is the only home appliance enterprise mutually beneficial online-offline integrated channel system continuously

In terms of brand the Company demonstrates its position as an industry that has ranked among China’s top 10 in granted invention patents for innovating its new retail marketing system and developing a nationwide

benchmark. The Company has successively received honors such as ten consecutive years. It has obtained 50 "world-leading" technologies highly efficient and collaborative three-dimensional sales and service

"China World Famous Brand" "Most Market-Competitive Brand" "National in total; it has won 2 National Technological Invention Awards 2 National network. For offline channels the Company has formed a physical network

Quality Award" "Export Inspection Free Enterprise" "China Brand Science and Technology Progress Awards 3 China Patent Gold Awards covering 30 regional sales companies over 20000 sales stores and more

Innovation Award" "Top 100 Chinese Light Industry Enterprises in Science 4 China Design Gold Awards 16 Gold Medals of International Exhibition than 30000 professional service outlets and has completed the upgrading

and Technology" and "Top 500 Chinese Enterprises in Credit". During the of Inventions of Geneva and 13 Gold Awards of International Exhibition of or renovation of over 1000 "Dong Mingzhu Healthy Home" offline stores.reporting period the Company has once again been listed in the Forbes Inventions Nuremberg. Through scenario-based experiences data visualization and intelligent

Global 2000 ranking 346th; it has been awarded the title of "2025 EPR interaction it comprehensively showcases whole-house healthy home

Responsibility Fulfillment Innovation Pioneer Enterprise". According to the In terms of quality the Company upholds a total quality excellence model. appliances such as refrigerators washing machines and water purifiers

"2025 China Brand Value Evaluation" released by the China Council for Adhering to the quality policy of "Pursuing Best Quality Establishing an providing consumers with one-stop healthy home solutions. For online

Brand Development and China Appraisal Society Gree Electric Appliances International Brand and Building a Century-Old Enterprise" the Company channels relying on self-built platforms official flagship stores on third-

has achieved a brand value of RMB 202.14 billion ranking second always prioritizes quality and deepens the implementation of the PQAM party e-commerce platforms and new media matrices such as WeChat

in the light industry group and first in the home appliance industry. Its Perfect Quality Assurance Model achieving strict quality control across and Douyin the Company achieves multi-platform wide-reaching digital

comprehensive brand strength and leading industry position continue to be design procurement production and service. It refines a GREE-specific marketing coverage.consolidated. "Perfect Quality" management system centered on the "Five-Step Quality

Prevention Method" and "D-CTFP Quality Technology Innovation Cycle". GREE will continue to uphold its corporate vision of "Building a World-

In terms of R&D the Company builds outstanding technological capabilities. In March 2021 the Company took the lead in launching a "10-Year Free Class Enterprise and Making GREE a Century-Old Brand". Guided by Xi

The Company adheres to independent R&D of core technologies Warranty" policy for residential air conditioners setting the longest Jinping Thought on Socialism with Chinese Characteristics for a New Era

implements an "unlimited R&D investment as needed" policy and has warranty commitment in China's household air conditioning industry the Company will remain true to its original aspiration and keep its mission

established a multi-level R&D system supported by national-level scientific and leading the upgrade of industry service standards. As of the end of firmly in mind. It will stay rooted in the real economy adhere to the path of

research platforms. It has the world's largest air conditioning R&D center the reporting period the Company has consecutively received the dual independent innovation and contribute to the progress of human society

comprising 1 academician workstation 16 research institutes 152 research highest honors of "Enterprise Market Quality Credit AAA Grade" and "User through innovation responsibility and green development. Ultimately

institutions and 1411 labs. It houses a National Engineering Technology Satisfaction Benchmark Five-Star Enterprise" from the China Association GREE aims to be a globally trusted brand joining hands with the world to

create a better future.

03About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Corporate Culture

Corporate Vision Corporate Mission Corporate Spirit Core Values

Build a world-class enterprise and Carry forward industrial spirit Loyal Friendly Talk Less and Do More;

make GREE a century-old brand pursue perfect quality provide Diligent Enterprising Quality First for Customer Satisfaction;

professional service. Made in Loyal Friendly Diligent and Enterprising;

China loved by the world! Honest Business for Win-win Situation;

Legal Compliance and Integrity;

Dedication and Innovation;

be Solidaristic and Cooperative

be Open and Tolerant.Quality First for Customer Satisfaction

Honest Business for Win-win Situation GREE's "Fairness Principles and Code of Conduct"

Trustworthiness Fairness Principles

Be fair Be open Be dedicated

Talk Less and Legal Compliance

Pragmatism

Do More GREE's

Probity

and Integrity

"Pragmatic"

Culture Code of Conduct

Be truthful Be principledwork Be committed

work for real for good work for success

Loyal Friendly Diligent Dedication and

Courtesy Innovation

and Enterprising Innovation

04About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

2025 Performance Highlights

Economic Performance Corporate Governance Business Ethics

Total operating revenue Net profit attributable to Number of General Number of Board Anti-commercial bribery and anti-corruption

the parent company Meetings of meetings held training sessions

RMB RMB Shareholders held

171.118 billion 29.003 billion 3 6 33

Total cash dividends Cash dividend per 10 Attendance rate of Proportion of

(tax included) shares (tax included) Board members independent directors Coverage rate of directors and employees in anti-

on the Board commercial bribery and anti-corruption trainingRMB RMB

16.755 30.00 100% 40% 100% billion

Number of Signed Integrity Commitment Letters

Innovation and R&D

R&D investment 10364R&D investment as a percentage Proportion of R&D personnel

RMB of operating revenue among total employees

6.444 billion 3.78% 22.16% Safety and Quality of Products and Services

Cumulative number of Among which authorized Cumulative China Patent Major liability accidents Product recall incidents

authorized patents invention patents Awards

87079323178100

Number of domestic and foreign Among which international Cumulative number Complaint resolution Customer satisfaction

standards led or participated in and foreign standards of "world-leading" rate rate

formulation and revision technologies

9426250100%99.97%

05About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Employee Management Supply Chain Management

Coverage rate of employees under collective contracts Number of suppliers surveyed on Total traced smelters and refineries Among which RMAP-certified proportion

conflict minerals

100%84140952%

Listed on the Environmental Management Climate Change Tackling

Forbes 2025 World's Best

Employers Cumulative number Including national-level Total greenhouse gas Year-on-year reductionof green factories green factories emissions

2210220043030.66%

tons of CO2 equivalent

Employee Training

Electronic Waste Management Energy Management

Total employee training hours

over Waste electrical and electronic products recycled Newly built photovoltaic Total installed photovoltaic

and disposed power capacity capacity of the Group

1.19 million hours 8.55 million sets/units 12 MW 126.3 MW

Average training hours per capita

over Converted into recycled copper iron aluminum Photovoltaic power Carbon emission and plastic materials generation reduction achieved

50 hours 183200 tons 115 million kWh 61681

tons of CO2 equivalent

06About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

2025 Honors and Awards

Brand Honors

2025 People's Daily Overseas Edition &

2025 Forbes Global 2000 – the 346th 2024 Top 100 Chinese Light Industry Enterprises in Science and Technology GYBrand Global Brand Research Institute "Top 100 Chinese Global Brands Index"

Forbes China National Light Industry Council People's Daily Overseas Edition & GYBrand Global Brand Research Institute

2025 World’s Best Employers 2025 EPR Responsibility Fulfillment

2025 Entrepreneurs Sun Island Annual

Innovation Pioneer Enterprise Conference Corporate ESG Development Forum – ESG Practice Case

18th Extended Producer Responsibility System 2025 Entrepreneurs Sun Island

Forbes and Recycling Technology Conference on Annual Conference Corporate

Electrical and Electronic Products ESG Development Forum

Product Honors

Gold Medal of International Exhibition Silver Medal of International Exhibition of Bronze Medal of International

of Inventions Geneva 2025 (High- Inventions Geneva 2025 (Key Technology Exhibition of Inventions Geneva 2025

speed Direct-drive Double-beam Gantry and Application of Reversible Airflow (GREE High-efficiency Intelligent

Machining Center GA-FMD3020) Central Air Conditioning) Control Constant Temperature & Humidity Unit for Museums)

World Intellectual Property Organization World Intellectual Property Organization World Intellectual Property Organization

Swiss Federal Government Swiss Federal Government Swiss Federal Government

Gold Award of the 77th International 2025 First Prize of the Science and 2025 Special Prize for Scientific and

Exhibition of Inventions Nuremberg Technology Progress Award of the China Technological Progress in Energy

(GREE Air-cooled Range Hood) National Light Industry Council (GREE Conservation and Emission Reduction Honour Floor Standing Unit) from the China Energy Conservation

Association (GMV9 Zhiyue VRF Units )

Organizing Committee of the International

Exhibition of Inventions Nuremberg China National Light Industry Council China Energy Conservation Association

07About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

ESG Management

Stakeholder Identification and Communication

Gree Electric Appliances actively carries out communication with various stakeholders collects the requirements and

expectations of stakeholders through various channels and realizes common development with them.Major Stakeholders Government Department and Regulatory Authority Shareholder and Investor Customer Partner Employee Society and the Public

* Occupational health and

* Law-abiding and compliant * Customer relation

safety

* Occupational training and

* Law-abiding and compliant operation management development

operation * Intellectual property protection * Product quality and safety * Adherence to business * Product and service ethics * Protection of employees' * Responding to national

Concerned Topics * Transparent disclosure * Transparent disclosure rights and interests strategies* Improving corporate governance * Risk management accessibility * Industry exchange and

* Adherence to business ethics * Improving corporate governance * Product maintenance and development

* Employee communication * Practicing social

replacement * Supply chain management and democratic responsibility* Addressing climate change * Adherence to business ethics management

* Technological innovation * User feedback and suggestions * Employee care* Diversity and equal

opportunity

* Inspection by leaders and

competent authorities * General Meeting of Shareholders

* Compliance patrols and * Investor exchange meetings * Email

inspections * Online performance briefing * Official hotline* Service mini-programs * Selection assessment * Training and induction * Telephone * Regular meetings with local * Shenzhen stock exchange easy training * Company announcement

Communication government representatives interaction Q&A * Brand official accounts * Procurement process * Email and suggestion box * Social network platform

Methods and * Forums conferences and * Investor hotline * E-commerce platform online * Performance evaluation

Channels seminars * Company research * Customer email and * Regular communication

* Regular meeting * Company website

* Employee performance * Social media

* Daily policy implementation * Telephone consultation correspondence with business partners(e.g.* Carrying out carbon footprint * Email * Customer satisfaction survey emails meetings)

evaluation * Charitable donations and

* Employee activities voluntary services

verification energy conservation * Regular reports and information * Customer visit * Community activities

and emission reduction disclosure on official website

* Developing clean energy

08About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Material Topics Analysis Double Materiality Matrix of Gree Electric Appliances in 2025

During this reporting period we orderly carried out the research on material topics based on High

the process of "stakeholder communication – topic identification – topic evaluation – materiality

Law-abiding and compliant operation Safety and quality of

determination" so as to effectively respond to the expectations and demands of various stakeholders Stakeholder

communication products and servicesCustomer service optimization

and continuously improve our ESG management practices. Transparent disclosure Innovation-driven

Rural Revitalization Energy Improving corporate governance development

We maintained regular communication with investors customers Social contribution

utilization

Circular economy Waste treatment Addressing climate change

government agencies and employees among other stakeholders. Management of conflict minerals Data security and customer privacy protection

Stakeholder We recorded the topics and specific content of different stakeholders' Anti-commercial bribery and anti-corruption Anti-unfair competition

Communication concerns and responded to their demands. Protecting investors'

rights and interests Employee

Environmental compliance management

Equal treatment of Due diligence Supply chain management

Based on the Self-Regulatory Guidelines No. 3 for Companies Listed small and medium-sized enterprises

on Shenzhen Stock Exchange—Compilation of Sustainability Report Ecosystem and biodiversity protection

the United Nations' 17 Sustainable Development Goals (SDGs) Pollutant discharge

"GRI Standards" mainstream ESG ratings national policies industry Water resources utilization

Topic Identification benchmarking and the results of stakeholder communications we

identified 26 topics highly relevant to the Company.In 2025 the Company conducted research on environmental social and

corporate governance topics among multiple internal departments fully Low Financial materiality High

Topic Evaluation listening to their opinions and feedback on the topics. Governance Social Environmental

1 Law-abiding and 9 Employee Data security and 19 Energy utilizationcompliant operation Innovation-driven 15 customer privacy 10 Water resources

Based on research findings from internal and external stakeholders we 2 Improving corporate development

protection 20 utilization

governance

conducted double materiality analysis from the two dimensions of impact 11 Customer service 16

Supply chain 21 Waste treatment

3 Transparent disclosure optimization management Addressing climate

materiality and financial materiality and developed a double materiality 4 Anti-unfair competition 12 Rural revitalization 17 Social contribution 22 change

matrix to define the key topics disclosed this year. Our management 5 Protecting investors' Management of conflict

Equal treatment of Environmental

rights and interests 13 minerals 18 small and medium-

comprehensively evaluated and finalized the double materiality topics sized enterprises 23

compliance

Materiality Anti-commercial Safety and quality of management6 bribery and anti- 14

Determination by integrating our development strategy stakeholder interviews and products and services 24 Circular economycorruption

communications external inquiries and feedback as well as industry 25 Pollutant discharge7 Due diligence Ecosystem and

development trends. 8 Stakeholder

26 biodiversity protection

communication

09

Impact materialityAbout This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Corporate Governance Standard Operation of the Board of Directors

and Special Committees

The convening holding and voting procedures of the Company's Board of Directors and Board of

The Company strictly abides by the Company Law of the People's Republic of China the Securities

Supervisors strictly comply with the Company Law of the People's Republic of China and other laws

Law of the People's Republic of China and other laws regulations and regulatory requirements. It

and regulations as well as the relevant provisions of the Company's Articles of Association ensuring

continuously improves the corporate governance system with the Board of Directors as the core

that corporate governance operates in accordance with laws and regulations in an orderly and efficient

clarifies the responsibilities and boundaries of various governance bodies and standardizes decision-

manner.making and supervision mechanisms.Directors and senior management of the Company continuously strengthen their compliance

awareness and regularly participate in compliance training organized by regulatory authorities the

Shenzhen Stock Exchange and internal institutions so as to continuously improve the standardization

of duty performance and risk prevention capabilities. During the reporting period the Company held

Corporate Governance Structure Chart 6 meetings of the Board of Directors and reviewed 31 proposals. All incumbent directors achieved a

100% attendance rate. All directors performed their duties diligently and responsibly with standardized

and transparent decision-making procedures.General Meeting of Shareholders

During the reporting period the Company

Election Report

Board of Directors

Held reviewed

Establish Report 6 Board of Directors meetings 31 proposals

Special Committees of the Board of Directors

Audit Committee

Held Held Held

Remuneration and Evaluation Committee

Nominating Committee 4 meetings 3 meetings of 3 meetings of

of the Audit the Remuneration the Nominating

Committee and Evaluation Committee of

Supervise and Guide Report

of the Board Committee of the the Board of

of Directors Board of Directors Directors

Senior Management

11

Appoint Supervise Guide

ReportCompliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Diversity of the Board of Directors Remuneration Management for Directors and Senior Management

A diversified Board composition helps introduce different professional perspectives and enhance the scientificity and robustness In accordance with the Company Law of the People's Republic of China the

of the Board's decision-making. In the selection and appointment of directors the Company attaches importance to the rational Securities Law of the People's Republic of China the Code of Governance for

combination of gender structure professional background and work experience. The professional fields of the incumbent directors Listed Companies and the Articles of Association of Gree Electric Appliances

cover corporate governance financial management legal compliance home appliance among others. Many directors boast Inc. of Zhuhai and in light of the Company's actual conditions the Company

extensive experience in fields such as enterprise management and capital market practice. As of the end of the reporting period has formulated the Remuneration Management System for Directors and Senior

the Company's Board of Directors consists of 10 directors including 4 independent directors (40%); and 1 female director (10%). Management. By establishing a scientific and effective incentive and restraint

mechanism the system ensures that directors and senior management perform

their duties in accordance with the law. The remuneration of directors and senior

Independent Director Education management consists of basic salary performance-based salary and medium- Name or Not Gender Age Background Professional Background to long-term incentive income. In principle performance-based salary accounts

for no less than 50% of the total amount of basic salary and performance-

Non-independent

Dong Mingzhu Female 71 Master's degree Home appliance industry expert based salary. The Company links the remuneration of the management

director team to sustainable development performance with assessment indicators

Non-independent covering quality management work safety compliance management and

Zhang Wei Male 49 Bachelor's degree Home appliance industry expert

director other dimensions. Through incentive and restraint mechanisms the Company

Non-independent consolidates management responsibilities strengthens risk prevention and

Zhang Jundu Male 65 Junior college Home appliance industry expert

director implementation and underpins the Company's high-quality and sustainable

Non-independent development.Shu Lizhi Male 56 Master's degree Home appliance industry expert

director

In the event that directors or senior management breach their duties and cause

Non-independent

Zhong Chengbao Male 40 Master's degree Home appliance industry expert losses to the Company or are at fault for illegal or non-compliant acts such as

director financial fraud misappropriation of funds or irregular guarantees the Company

Zhang Qiusheng Independent director Male 58 Doctor Accounting expert shall depending on the severity of the circumstances reduce or suspend the

payment of unpaid performance-based salary and medium- to long-term incentive

income and recover in full or in part any performance-based salary and medium-

Cheng Ming Independent director Male 66 Doctor /

to long-term incentive income already paid during the period in which the relevant

acts occurred.Li Hongqi Independent director Male 63 Doctor /

Weng Guomin Independent director Male 62 Doctor Legal expert

Shao Liguo Employee director Male 47 Master's degree /

12Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Investor Communication Shareholder Returns and Dividends

The Company conducts information disclosure and investor engagement activities to deepen While advancing its steady development the Company always prioritizes rewarding shareholders.communication with investors and improve corporate governance capabilities while effectively Since its listing in 1996 the Company has raised a total of RMB 5.269 billion through equity financing

safeguarding investors' rights and interests and further delivering corporate value to the market. and distributed cumulative dividends exceeding RMB 188.7 billion (including the 2025 annual dividend)

among which cumulative cash dividends exceeded RMB 158.7 billion and the cumulative amount of

Investor Relations Management share repurchases reached approximately RMB 30 billion. During the reporting period the Company's

total cash dividend distribution amounted to RMB 16.755 billion including: (1) Interim cash dividend

In accordance with the Company Law of the People's Republic of China the Securities Law of the distribution for 2025 of RMB 5.585 billion (tax included); (2) Proposed annual cash dividend distribution

People's Republic of China the Guidelines for Investor Relations Management of Listed Companies for 2025 of RMB 11.170 billion (tax included subject to review and approval by the Company's General

and the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange— Meeting of Shareholders).Standardized Operation of Listed Companies on the Main Board the Company has formulated the

Investor Relations Management System to standardize investor relations management and promote Information Disclosure

the sound development of the securities market and the Company itself.The Company responds promptly to investors' concerns through multiple channels including The Company strictly complies with the Measures for the Administration of Information Disclosure by

performance briefings the SZSE Interactive Easy Platform investor hotlines and dedicated email Listed Companies the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock

addresses. Meanwhile it organizes investor communication activities and on-site corporate visits and Exchange—Standardized Operation of Companies Listed on the Main Board and the Self-Regulatory

research as appropriate enabling investors to gain in-depth insight into the Company's operating Guidelines No. 5 for Companies Listed on Shenzhen Stock Exchange—Administration of Information

conditions business layout and development strategies thus fostering long-term trust with investors. Disclosure Affairs. In accordance with internal rules such as the Information Disclosure Management

Measures the Company has established and improved its information disclosure mechanism to ensure

disclosed information is true accurate complete and timely. It fulfills information disclosure obligations

During the reporting period the Company

in accordance with the law guarantees investors' fair access to corporate information and upholds the

openness fairness and impartiality of market order. As of the end of the reporting period the Company

Held Held has been rated Grade A in the annual information disclosure assessment by the Shenzhen Stock

3 1 Exchange for five consecutive years. General Meetings performance briefing

of Shareholders

During the reporting period the Company

Answered Received more than

Issued Issued

522 inquiries on the SZSE 980 investor

Interactive Easy Platform hotline calls 4 periodic reports 109 ad hoc reports

13About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Risk Management Risk and Opportunity Management Mechanism

The Company continuously improves its compliance internal control To effectively supervise ESG-related risks1 of the Company the Company systematically carries out the

and risk management system. Risk prevention and control compliant identification monitoring and review of risks and opportunities based on established and operational

operation and internal control serve as an important foundation for management systems covering quality environment occupational health and safety information

ensuring the steady operation and high-quality development of the security privacy protection business continuity supply chain security anti-bribery and business ethics. It

Company. Through a clear governance structure and institutionalized continuously pays attention to and responds to the expectations and requirements of stakeholders.management mechanism the Company promotes the effective

implementation of risk management requirements in operation and At the specific operational level the Company formulates the Risk Factor Prompt List and the Risk

management. Assessment Standard tailored to its development stage. All internal departments at the headquarters

and holding subsidiaries shall conduct risk identification assessment and prevention in accordance

In compliance with the Company Law of the People's Republic of China with unified requirements quantify and prioritize risks with a consistent caliber and formulate a Risk

and relevant laws and regulations the Company has formulated and Assessment Information Form. The internal control working group regularly organizes all units to update

implemented institutional documents including the Measures for Risk and risk assessment results supervises and inspects the implementation of risk management and promotes

Opportunity Management the Internal Control System of Gree Electric the continuous optimization and improvement of the risk management system.Appliances Inc. of Zhuhai and the Internal Audit System of Gree Electric

Appliances Inc. of Zhuhai. These documents clearly stipulate internal Internal Control Implementation and Audit Supervision

control objectives management responsibilities audit supervision and In accordance with the Basic Specifications for Internal Control of During the reporting period the total assets of units included in the

risk identification procedures so as to safeguard the safety and integrity Enterprises and its supporting guidelines the Company continuously internal control evaluation scope accounted for over 90% of the total

of corporate assets and improve operational efficiency. advances internal control and compliance evaluation clarifies the assets in the Company's consolidated financial statements and

division of responsibilities among the Board of Directors Audit operating revenue also accounted for over 90% of consolidated total

In terms of governance structure the Board of Directors has set up an Committee Board of Supervisors and management in internal control revenue. In response to issues identified in audits the Company

Audit Committee to supervise and evaluate the Company's internal control. closely integrates internal control with daily operations and realizes has established a closed-loop rectification mechanism of "issue

Meanwhile the Company establishes an Audit Department to conduct closed-loop operation of risk management. identification responsibility assignment corrective action supervision

supervision and inspection and effectiveness verification". Through systematic audit supervision

on business activit ies r isk In 2025 adhering to the principles of "risk-based comprehensive and internal control optimization the Company continuously improves业务连续性管理体系认证证书

management and the operation 证书编号：ZRC25BCMS-020025R0L coverage and focus on key areas" and targeting "strengthening 兹 证 明 the quality of internal control operation and audit efficiency.珠海格力电器股份有限公司

of internal control systems 统一社会信用代码：91440400192548256N注册地址：珠海横琴新区汇通三路 108 号办公 608 internal control preventing risks and improving dual efficiency" the

审核地址：中国广东省珠海市香洲区金鸡路789号

forming an internal control and 经评审，组织的管理体系符合GB/T 30146-2023/ISO 22301:2019《安全与韧性 业务连续 Company formulated its annual audit plan based on sufficient research Meanwhile the Company engages a third-party professional institution 性管理体系 要求》标准的要求risk management mechanism 证书覆盖范围：空调、制冷制（热）设备的研发、制造和销售所涉及的 and scientific risk assessment. It carried out special audits economic annually to conduct an independent assessment of the compliance业务连续性管理活动

with c lear responsib i l i t ies 发证日期：2025年 11月 24日 有效期至：2028年 11月 23日 responsibility audits and operation management audits covering key and effectiveness of the internal control system. It dynamically

and coordinated operation. businesses including procurement production sales finance capital improves the internal control system in light of changes in internal

The Company has obtained construction and asset management and conducted comprehensive and external environments organizational structure adjustments

t h e I S O 2 2 3 0 1 B u s i n e s s audits of subsidiaries and branches on a regular basis to further and updated management requirements supporting the steady

Continuity Management System Business Continuity Management deepen group-based management and control. development of the enterprise with a more adaptive management and

Certification. System Certification control mechanism.

1Specific major risks and ESG-related risks that have a material impact on the Company's financial condition will be further disclosed in the relevant subsequent

14 sections of this report.About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Business Ethics

The Company adheres to the basic principles of integrity law-abiding and honest operation. It takes business ethics anti-commercial bribery anti-corruption and anti-unfair competition as important components of

the corporate governance system and continuously improves institutional development organizational support and supervision mechanisms to prevent operational risks and maintain a fair and transparent business

environment. The Audit Committee of the Board of Directors serves as the top governing body for business ethics and anti-corruption coordinating relevant management requirements and supervision arrangements.Code of Business Ethics and Anti-Unfair Competition Responsible Marketing

Conduct In market competition the Company strictly abides by the Anti- The Company adheres to the principle of responsible marketing in

Unfair Competition Law of the People's Republic of China market promotion and information disclosure. It strictly complies

The Company has formulated and implemented the Code of Business the Anti-Monopoly Law of the People's Republic of China with the Advertisement Law of the People's Republic of China

Ethics and Conduct of Gree Electric Appliances which clarifies basic applicable EU competition laws and other relevant laws and and other relevant laws and regulations as well as internal review

requirements on honest operation integrity in practice anti-commercial regulations and conducts business activities in accordance with systems and implements standardized management of advertising

bribery prevention of conflicts of interest and other aspects. This laws and regulations. Through internal institutional constraints promotion activities and external communication content to

Code applies to all employees of the headquarters and all subordinate and compliance management the Company regulates market ensure information is true accurate and compliant. The Company

subsidiaries (branches). The Company also advocates that suppliers competition practices and prevents risks of unfair competition has established unified management requirements and labeling

contractors and other partners support follow and implement relevant monopoly and other acts that disrupt market order so as procedures for product identification and integrates identification

requirements during cooperation and jointly abide by applicable laws and to maintain a fair and orderly market environment. During standards into production and launch processes to ensure product

regulations as well as recognized environmental social and governance the reporting period the Company had no lawsuits or major and service information meets regulatory requirements and

standards. administrative penalties arising from unfair competition practices. industry standards. During the reporting period the Company had

no major violations in product and service information disclosure

Anti-Commercial Bribery and Anti-Corruption identification use or market promotion (including advertising sales

The Company strictly abides by laws and promotion and sponsorship).regulations including the Interim Provisions

on Prohibiting Commercial Bribery and has反贿赂管理体系认证证书

formulated the Anti-Corruption and Anti- 证书编号：ZRC25FHL-20002R0L During the reporting period the Company兹 证 明珠海格力电器股份有限公司

Bribery Policy of Gree Electric Appliances 统一社会信用代码：91440400192548256N注册地址：珠海横琴新区汇通三路 108 号办公 608审核地址：中国广东省珠海市香洲区金鸡路 789 号经评审，组织建立的管理体系符合：

Inc. of Zhuhai. It maintains a zero-tolerance ISO37001：2025 《企业反贿赂管理体系 要求》标准的要求

认证范围：

stance toward commercial bribery and 空调、制冷制（热）设备的研发、制造和销售所涉及的反贿赂管理活动 Recorded no major violations in product and

corruption upholds the Fairness Principles 发证日期：2025年 11月 26日 证书到期日期：2028年 11月 25日 Had no litigation or major service information disclosure label application

and Code o f Conduct and ach ieves administrative penalties arising

and market promotion (including advertising

full coverage without forbidden zones from unfair competition practices

investigating every case and punishing all sales promotion and sponsorship)

corruption. The Company has obtained the Anti-Bribery Management

ISO 37001 Anti-Bribery Management System System Certification

Certification.

15About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Business Ethics Audit and Supervision

The Company integrates business ethics development anti-commercial For risk identification the Company adopts an annual self-

bribery management into its internal control and audit supervision system inspection and reporting mechanism for integrity practice.Reporting Channels

and conducts ongoing supervision over the implementation of relevant Self-inspections are conducted item by item against relevant

policies. In accordance with the Code of Business Ethics and Conduct of integrity provisions to identify potential commercial bribery and

Gree Electric Appliances and the Anti-Corruption and Anti-Bribery Policy President Mailboxes: More than 30 President mailboxes corruption risk points. Based on the likelihood and impact of

of Gree Electric Appliances Inc. of Zhuhai the Audit Department regularly are set up in various departments canteens gate posts risks the Company defines key focus areas providing a basis for

audits the implementation of business ethics codes by all internal institutions and factories for employees to file complaints and reports subsequent supervision and rectification.at all levels holding subsidiaries and relevant business activities across the in real time.full scope of operation. Integrity Complaint Email: jiancha@cn.gree.com The Company provides training on business ethics and anti-

Complaint Hotline: 0756-8669807 commercial bribery for all employees (the Company has no part-

Upholding compliant operation and embracing the core philosophy of time employees) and contractors and incorporates integrity

integrity and self-discipline the Company conducts regular evaluation on requirements for professional conduct into regular training and

the implementation effect of relevant policies in light of the operational Integrity Culture Construction disciplinary education programs. The training covers codes of

characteristics of different business sectors combined with the operation of business ethics integrity risk alerts and interpretation of typical

internal control the authenticity and completeness of financial information The Company clarifies the responsibilities and obligations of cases aiming to continuously enhance employees' compliance

and integrity risks existing in key positions and critical business links. It employees in integrity and compliance operation by signing awareness and risk prevention capabilities.identifies potential business ethics risks regards links with concentrated the Integrity Commitment Letter to strengthen individual self-

risks as key audit priorities and promotes problem rectification and discipline and accountability. During the reporting period the

institutional optimization. By integrating audit supervision with internal control Company extended integrity commitment requirements to senior During the reporting period the Company

improvement the Company continuously enhances the effectiveness and management middle-level cadres and staff in key positions.standardization of business ethics governance. Relevant personnel signed the Integrity Commitment Letter on an

annual basis. They made clear commitments to abide by integrity

Whistleblower Protection Conductedstandards and fulfill integrity management responsibilities. This

The Company establishes a Discipline Inspection and Supervision Office and institutional approach consolidates individual accountability and

formulates institutional documents including the Measures for Management prevents violations and corruption risks at the source. 33 sessions of anti-commercial

of Discipline Inspection and Supervision and the Measures for Management bribery and anti-corruption training

of Reporting. These documents clearly define disciplinary responsibilities The Company continuously promotes integrity culture by combining

workflow and requirements for accepting investigating and handling reports discipline education with risk prevention and control. It organizes

providing institutional basis for standardized and orderly operation of relevant self-inspections and themed publicity activities on integrity practice

Achieved a

work. The Company offers multi-channel reporting avenues for employees around key festivals such as New Year's Day Spring Festival Mid-

and stakeholders to ensure smooth information submission. Autumn Festival and National Day. Through system promotion and 100% coverage rate of

case warnings it strengthens employees' understanding of integrity directors and employees in anti-

To protect the legitimate rights and interests of whistleblowers the Company requirements. During the reporting period the Company issued commercial bribery and anti-corruption

specifies withdrawal and protection clauses in its systems keeps the identity a total of 30 issues of integrity briefings and 3 issues of discipline training

information and content of whistleblowers confidential and strictly prevents inspection and supervision briefings continuously sending a clear

retaliation creating a sound environment for bold and law-based supervision. signal of strict management.

16About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

17About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Strengthening Innovation through Intensive R&D

Gree Electric Appliances adheres to the development strategy of "independent R&D of core technologies" and has established a scientific research management mechanism of "investment on demand with no upper limit"

providing institutional guarantee for the continuous technological innovation. The Company promotes R&D and achievement transformation around strategic directions and simultaneously incorporates intellectual property

protection into the innovation management system. Through institutional construction organizational allocation and practical implementation it supports the standardized management and value realization of technological

achievements. Efforts on this have been gradually integrated into product planning R&D management and business operation processes becoming an important foundation for the Company's long-term development.Governance

The Company's R&D and innovation work is overall coordinated and Pyramid System of Scientific Research Platforms

managed by the management with dedicated departments including

research institutes and labs undertaking relevant tasks. In addition the

Company has set up an R&D innovation management department to

realize the efficient allocation of R&D resources and give play to the

synergistic effect of R&D achievements. The Company has formulated National Energy-saving and Environment-friendly Refrigeration Equipment Engineering Technology Research Center

and implemented systems such as the Project Operation Management National Industrial Design Center

Measures and the Product Development Management Measures which National Enterprise Technology Center

systematically standardize key links including project initiation development 4 national- National Notification and Enquiry Center Research and

procedures and achievement transformation. Institutional requirements are level research Evaluation Baseplatforms

embedded throughout the whole process of innovation activities to improve

the standardization and enforceability of innovation management. Through

the coordinated operation of organizational structure and institutional 1 academician Motor and Control Academician Workstation

systems the Company continuously strengthens the overall planning workstation

capability and implementation efficiency of R&D and innovation accelerates

the transformation and application of innovation achievements and

continuously fuels the development of business operations. 16 research institutes

152 research institutions

1411 laboratories

18

Two Home Appliances Technology

Institutes

Refrigeration Technology Institute

Mechanical and Electrical

Technology Institute

Motor System Technology Institute

Equipment Power Technology

Institute

Communication Technology Institute

Washing Technology Institute

Internet of Things Technology

Institute

Building Environment and Energy

Conservation Institute

New Energy Environment

Technology Institute

Intelligent Equipment Technology

Institute

Robots Technology Institute

Health Technology Institute

Freezing and Refrigeration

Technology Institute

Electrical Engineering and Electrical

Materials InstituteAbout This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Strategy

Through materiality identification of topics this topic is identified as financially material to the Company. To strengthen the management of this topic the Company analyzes potential risks and opportunities it may

face in this regard and formulates corresponding response measures.List of R&D Innovation Risks and Opportunities

Risk Name Specific Description Impact Period2 Response Measures

The industry is experiencing an accelerated rate of technological upgrading. If some technological routes or products Strengthen the research and judgment of cutting-edge

are replaced it may lead to an extension of the return cycle of existing R&D investment phased increase in R&D Medium Term technologies lay out multiple technological routes in parallel

Technology costs and impact on project investment recovery. improve the prudence of R&D decisions and reduce the

Iteration Risk investment risk of a single route.Intensified industry competition and technological homogenization may weaken the differentiated advantages of Strengthen the independent R&D capability of core components

Core Technology products exerting certain pressure on product gross profit margin and market share.Medium Term promote the layout of high-value patents and enhance

technological barriers and product differentiation.Competition Risk

Standards for energy efficiency environmental protection and safety continue to rise. If products fail to adapt in Track changes in domestic and foreign laws regulations and

a timely manner it may lead to increased rectification costs slower product launch schedule or restricted sales Short Term standards in advance incorporate compliance requirements into

Technology affecting the revenue and cost structure. Medium Term the R&D stage in advance and improve product adaptability.Compliance Risk

Opportunity Name Specific Description Impact Period Response Measures

With the continuous advancement of the national "carbon peaking and carbon neutrality" policy demand for high- Strengthen the R&D of technologies such as energy-saving air

energy-efficiency low-carbon products and system solutions is growing which helps increase the sales volume and Medium Term conditioners heat pumps low-GWP refrigerants and AI energy-

Low-Carbon product premium of energy-saving products supporting the optimization of the operating income structure and the Long Term saving control and promote the large-scale application of related

Technology improvement of cash flow. products.Opportunity

Demand for smart home appliances and systematic solutions is increasing which helps improve product added Medium Term Lay out in directions such as smart chips smart home platforms value and customer stickiness form differentiated competitive advantages and support revenue growth and Long Term and building digital intelligence systems and promote the Intelligent Upgrade profitability improvement. coordinated development of products and system-level solutions.Opportunity

Demand for health-related products is growing which helps expand product categories and application Medium Term Promote the R&D of technologies related to healthy home

scenarios supporting the scale of income and business diversification. Long Term appliances improve the product matrix and strengthen market Health Consumption promotion and channel layout.Opportunity

2“Short-term” refers to within one year after the end of the reporting period; “medium-term” refers to one to three years after the end of the reporting period; and “long-term” refers to more than three years after the end of the reporting period.

These time horizons correspond to different cycles of technology maturity commercialization of R&D outcomes and the development of long-term competitiveness.

19About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

R&D Innovation Strategy System and Direction

To systematically advance R&D innovation management the Company has established and continuously improved an R&D innovation strategic framework centered on "One Core Two Chains Three Foundations

and Four Outcomes". This framework provides an overall design for the governance logic operational mechanisms and value objectives of the Company's innovation activities from four dimensions—conceptual

guidance activity operation organizational support and outcome orientation—thereby offering an institutional foundation for technological R&D commercialization of achievements and innovation practices.Core R&D Innovation Strategy

Core R&D Innovation Strategy

"One Core" Referring to the conceptual system an abbreviated expression of "adhering to independent innovation and implementing a leader strategy"."Two Chains" Referring to the activity system an abbreviated expression of the "innovation chain and sustainable value chain".Innovation Full-staff quality

chain R&D internationalization Design universality Lean manufacturing Automated mass production engagement

Activity

system Sustainable

value chain Green purchasing Sustainable manufacturing Win-win marketing Demand creation

"Three Foundations" Referring to the organizational system an abbreviated expression of the three fundamental supports: "high-level technological innovation platforms comprehensive innovation management mechanisms and a high-quality R&D talent team".Referring to the achievement system an abbreviated expression of four outcomes created by GREE through innovation practices: "a self-transcending innovation culture a

"Four Outcomes" sound R&D system leading core technologies and standards and a comprehensive product system".

20About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Low-carbon Strategy

Key Technologies and Applications of Wide-range Industrialization of "Key Technology Research and

With a focus on energy conservation emission reduction and Efficient AI Multi VRF Systems Based on Real-time Application of Multi-Dimensional Intelligent Temperature-

green transformation the Company continues to advance the Performance Humidity-Freshness Control Air Conditioners"

implementation of technologies in areas such as product energy

efficiency improvement system-level energy saving and low-GWP The relevant technologies focus The Company conducts R&D centered on

refrigerant substitution. on R&D in real- t ime energy- zoned cooling and heating supply integrated

efficiency perception refrigerant humidification and fresh air regulation and

regulation and AI-driven decision-

Innovation in Energy-Saving Technology cloud-edge collaborative intelligent control

making and have been applied

By continuously promoting technological innovation technologies which have been applied to

and enhancing the high efficiency and energy saving to commercial multi-split system residential air-conditioning products. According

of equipment the Company has gradually overcome products. According to disclosed to disclosed project data the comfort level within

technical challenges such as "1 Hz variable frequency" project data the system's APF human activity areas has been significantly

and "permanent magnet synchronous variable (Annual Performance Factor) improved with the vertical air temperature

frequency" integrated air-conditioning technology with reached 6.45 with an average

PV and energy storage and launched "zero carbon difference controlled below 0.1°C and the CO2

source" air-conditioning technology. energy-saving rate exceeding Special Prize for Scientific concentration reduction rate increased by 22%

25%. The project received the and Technological Progress thereby creating comfortable efficient and GREE Honour

Special Prize for Scientific and

Upgrade of System Energy Efficiency in Energy Conservation and intelligent air-conditioning products. In 2025 the Floor Standing Air

Technological Progress in Energy Emission Reduction from the

The Company's dynamic energy-efficiency optimization project received the First Prize of the Science Conditioner China Energy Conservation

algorithms enable technological upgrades from Conserva t ion and Emiss ion and Technology Progress Award of the China Association

equipment-level and system-level energy saving to Reduction from the China Energy National Light Industry Council.long-term operational energy conservation. Leveraging Conservation Association in 2025.research outcomes related to the "key technologies for

wide-range high-efficiency AI multi-split systems" the

Company's products deliver real-time energy efficiency

Recommended Self-developed Products Included in the Catalogue of perception and dynamic regulation winning the Self-developed Products Included in the Energy-saving Carbon-reduction and Environmentally-

Special Prize for Scientific and Technological Progress Catalogue of Energy-saving and Carbon-reduction

Technologies and Equipment in the Industrial and friendly Products (Technologies) of the Chinese in Energy Conservation and Emission Reduction from

Information Technology Sector Association of Refrigerationthe China Energy Conservation Association.The Company's independently developed key technologies for

The Company's independently developed rotary four-cylinder

Application of Environmentally Friendly Refrigerant photovoltaic-storage DC air-conditioning systems air-cooled

positive-displacement liquid refrigerant pumps high-efficiency air-

In response to global environmental protection intelligent dual-circulation air-conditioning units for equipment

in i t iat ives and the Montreal Protocol and i ts conditioning systems based on low-carbon dynamic operation rooms and a new generation of parallel high-efficiency variable

amendments the Company continues to promote and separate cooling/heating supply and air-source high-frequency modular units have been included in the Recommended

the application of low-GWP refrigerants such as R32 efficiency intelligent cooling/heating station systems have been

and R290 and the related technologies have been Catalogue of Energy-saving and Carbon-reduction Technologies included in the Catalogue of Energy-saving Carbon-reduction and

implemented in products including air conditioners and Equipment in the Industrial and Information Technology Sector Environmentally-friendly Products (Technologies) of the Chinese

heat pump water heaters dehumidif iers and (2025 Edition) supporting technological upgrading and large-scale

refrigeration and cold-storage equipment. Association of Refrigeration.equipment renewal in key industries.

21Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Intelligence Strategy Health Strategy

Focusing on product intelligence system interconnectivity and Focusing on air health water health and food health the Company applies related technologies across a wide range of products

intelligent manufacturing the Company continues to advance and usage scenarios.technology application and platform development.Air Health Water Health Food Health

Targeting building and park scenarios the Company has

At the Technologies for sterilization The "dual-core six-stage fine filtration Relevant freshness-preservation

system established the "Taishan" Building Digital Intelligence bacteriostasis and formaldehyde system" has been deployed in water and cooking control technologies

level Platform supporting coordinated control of electromechanical removal have been incorporated purification products alongside the have been applied to refrigerator

systems and optimization of energy efficiency. into air conditioners and introduction of whole-home water and kitchen appliance products.At the Technologies such as intelligent energy saving comfort environmental appliances. purification solutions.product sensing and voice recognition have been applied to various

level household appliance products.Application of "Gentle Air Comfort Central Air-Conditioning Technology

GREE Taishan Smart Building Solution Platform

This central air-conditioning system adopts a reversible air supply system based on

During the reporting period the Company launched the "Taishan" differentiated cooling and heating supply requirements. By controlling both upper and

Smart Building Solution Platform which consists of a building lower air supply and return it achieves a uniform vertical temperature distribution.intelligent control system and a full-process high-efficiency The related technology passed technical appraisal in 2025 was certified as "world-

equipment room system. The platform can connect a large number leading" and received the AWE Innovation Award.of electromechanical devices enabling flexible and efficient

networking. In 2024 the "Taishan" Platform won the First Prize of

the Quality Technology Award granted by the China Association for

Quality. At present the platform has been applied in more than 5000

projects including office buildings industrial parks hotels hospitals

and rail transit systems promoting the upgrading of the construction

GREE's Four Products Win

industry toward digital intelligence greening and higher efficiency. AWE Innovation Awards

Adhering to the integrated innovation strategic direction of "low-carbon intelligence and health" the Company has steadily

advanced the implementation of R&D achievements and fully utilized technological advantages in product manufacturing

processes and various service scenarios. During the reporting period the Company received recognition from numerous

external professional institutions for its strong technological capabilities and outstanding product innovation capabilities

GREE Taishan Smart Building Solution Platform and won a total of 57 science and technology awards and honors demonstrating its commitment to innovation and quality-

oriented development.

22About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Impact Risk and Opportunity Management Innovation R&D Capability Development

Relying on a unified risk and opportunity management system the Company continuously identifies To meet the needs of R&D innovation the Company continues to strengthen the development of its

and assesses uncertainties that may arise in innovation activities in light of changes in the industry R&D team and enhance talent structure and capability cultivation providing human-resource support

environment policy direction and its own business development. Such identification is primarily based for technological innovation.on tracking and analysis of industrial policies technological trends and market conditions combined

with the professional judgment of the R&D system and technical teams and is carried out in parallel Multiple Approaches to Encourage All-Staff Innovation

across stages including technology planning product initiation technical review and major R&D project

assessment.In practical management the Company addresses risks associated with accelerated technological Project-based assessment and technological innovation reward mechanisms to stimulate

iteration and intensifying industry competition through sustained investment in core technology innovation motivation;

R&D. At the same time it pays attention to IP layout and compliance management requirements Talent subsidies for high-level professionals and outstanding young industrial talents in

during the R&D process embedding patent mining infringement risk identification and standardized Zhuhai;

management of innovation outcomes into the R&D management process. In addition during the R&D

phase the Company monitors changes in external compliance requirements such as energy-efficiency Employee stock ownership plan: covering core R&D teams to fully unlock employee

standards environmental regulations and product safety rules and enhances the adaptability of potential and promote high-quality corporate development;

innovation outcomes to regulatory environments and market dynamics thereby supporting the steady

advancement of its innovation strategy. "GREE Innovation Hub": technical salons forums achievement exhibitions and

technological competitions to share technical knowledge and incubate innovation projects;

All-staff innovation mechanism: proposal improvement and open competition to foster a

strong innovation culture;

Favorable working environments and

benefits to attract and retain outstanding

talent;

Encouragement for employees to

participate in domestic and international

academic conferences and technical

exchanges to broaden perspectives and

enhance technical capability.

23Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Collaborative and External Cooperation Innovation Practice

Focusing on key national technology fields and common industry challenges the Company continues Beyond specific project collaborations the Company has established long-term partnerships with over

to engage in industry-academia-research collaborative innovation and carries out diverse forms of 100 universities research institutes and upstream/downstream enterprises covering areas such as

cooperation with universities research institutes and industry-chain partners. energy-saving technologies power systems intelligent manufacturing and key equipment. These

collaborations serve both national scientific missions and support the Company's medium- to long-term

technology reserves and capability building.During the reporting period the Company participated in multiple national

key R&D program projects:

I n J a n u a r y 2 0 2 5 t h e C o m p a n y In October 2025 the "High-quality

As the project lead entity the Company together with State Grid participated in the national key R&D Magnetic Field Modulation Motor

Jiangsu Electric Power Co. Ltd. jointly undertook the national key program "Research on Key Technologies Topology and Application" project

R&D program "Key Technologies for Proton Exchange Membrane and Equ ipment fo r Po l lu t i on and jointly developed by Kaibang Motor

Fuel Cell and Heat Pump Coupled Power-Steam Cogeneration". Carbon Reduction Synergy in Urban w i th un ivers i t ies and indus t ry

In response to the demand for efficient upgrading of fuel cell waste Wastewater Treatment Systems and inst i tut ions won the First Prize

heat under large temperature rise and wide operating conditions the Utilization of Wastewater Heat Sources" (Invention) of China Machinery

Company carried out R&D of fuel-cell-driven pressurized boiling steam led by Chongqing Univers i ty. The Industry Science and Technology

heat pump units to address the challenges of multi-source waste heat Company participated in the R&D of Award. The related technology

upgrading and load fluctuation response thereby enabling the efficient key technologies and equipment for achieved significant improvements

and stable supply of high-grade steam. the efficient utilization of wastewater in overload capacity and torque

heat sources advancing technological stability has entered large-scale

breakthroughs in wastewater heat source application and maintains a leading

The Company participated in the national key R&D program heat pump units through optimization of market share in mining conveyor

"Research on Key Technologies for the Flexible Response of thermal characteristics and structural motor applications.Building Electromechanical Equipment and the Development of Such design of new compressors and heat

Equipment" led by Tsinghua University. Addressing the requirements exchangers.for rapid response and high regulation precision in building-to-grid

demand-supply interaction the Company carried out the R&D of

electromechanical equipment including flexible multi-split systems

integrated cooling stations and heat pump water heaters to achieve

precise control and rapid response for the flexible energy consumption

of building equipment.

24Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Innovation Application Initiatives

The Company continues to extend its technological capabilities into real business scenarios promoting the transition of innovation outcomes from the laboratory to large-scale application through demonstration

deployment product validation and industry collaboration.Validation of adaptability to extreme environments:

The Company conducted a "100-hour extreme cold challenge" field validation on Heixiazi Island where the relevant products achieved continuous and

stable operation under -35 °C environmental conditions. Supported by core self-developed technologies including large-displacement dual-cylinder

compressor simultaneous defrosting and heating and distributed air supply the system effectively ensured operational stability and comfort performance

in low-temperature environments. These practices provided field validation for product adaptation and technological optimization in cold regions.Validation of health technology application scenarios:

Focusing on drinking water safety the Company carried out the "Safe Drinking Water for Hometowns" purification technology validation. Based on

the "dual-core six-stage fine filtration system" and ultra-high-precision RO membrane technology deep purification of multiple water source types was

achieved. Supported by multiple core patented technologies the solution ensured purification effectiveness while balancing energy efficiency and reduced

the use of single-use bottled water through product deployment demonstrating the integrated environmental and social value of technological innovation.Industry collaboration and participation in public issues:

The Company participated in the preparation of the Annual Report on China Building Energy Efficiency and other industry studies and white papers

proposed energy-saving and carbon-reduction solutions centered on technological pathways including ice-storage multi-split systems and air-source heat

pump heating and contributed practical experience in load response and system optimization providing reference for green buildings and low-carbon

urban development.

25About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Green Product Design Intellectual Property Protection

Adhering to the philosophy of "For the Clearer Sky and Greener The Company has formulated an intellectual property (IP) strategy and management system aligned with its development vision

Earth" Gree Electric Appliances consistently follows green and incorporating IP management into its operational management. The Company strictly complies with applicable IP laws and regulations in

energy-saving principles in innovation R&D and manufacturing. all operating locations continuously improves IP-related institutional systems in line with business characteristics and has established and

The Company upholds the policy of "rational energy use and implemented internal policies such as the Measures for Administration of Enterprise Intellectual Property Measures for Administration of

improved energy utilization efficiency" promotes a circular Patent and Measures for Administration of Trademark. These policies clearly regulate processes including patent application maintenance

development model of "green design–green manufacturing– operation and commercialization of achievements and are embedded into R&D management and daily operations. The Company also

green recycling" and continues investing in green environmental advances IP management system development across group subsidiaries ensuring continuous implementation of relevant policies in

protection and energy-saving technology upgrades embedding subordinate units. Currently seven entities of Gree Electric Appliances and its subsidiaries have been recognized as National Intellectual

green requirements into products and manufacturing systems. To Property Demonstration Enterprises and seventeen as National Intellectual Property Advantage Enterprises.date 25 product designs have received the title of Guangdong

Famous High-Quality High-Tech Product. Full-Lifecycle IP Management System of Gree Electric Appliances

The high-efficiency DC inverter central air conditioner

achieved stepless capacity regulation from 10% to 100%

through variable frequency control compressor with

an annual performance factor (APF) exceeding 5.4 far

surpassing the national Grade 1 energy-efficiency standard; Business

activities Pre-research Design Procurement Production Sales After-sales

Air conditioners using GREE's self-developed AI dynamic

IP

energy-saving technology improved annual dynamic management Repeated

Infringement of Material Equipment Improper use

R&D inadequately infringement infringement of promotional Quality risks

energy efficiency by more than 15.8% and reduced annual risks protected product materials

power consumption by over 13.6% breaking seasonal

temperature and duration constraints through full-scenario IP control Project search Patent layout Material Equipment Solving

measures and patent avoidance infringement risk infringement risk

Compliance quality

intelligent adaptation and achieving immediate energy analysis design verification verification review problems

savings during operation;

As an industry benchmark for green products the split- The Company maintains a dedicated IP management department staffed by more than 500 patent personnel including over 70 management

type inverter heat-pump wall-mounted room air conditioner specialists and more than 400 part-time patent technicians from technical R&D departments. Covering the Group's major R&D and business

obtained Green Product Certification through full life- units the department is responsible for patent mining patent layout management and commercialization while maintaining coordinated

cycle green design and high-efficiency energy-saving operation with the R&D system. On this basis the Company has a "GREE Patent Committee" and has established an innovation

technologies driving green consumption transformation management mechanism based on patent intelligence and has organized patent monitoring and technical assessment activities. During

through technological innovation. the reporting period nearly one hundred technical analysis outputs were generated through monthly patent early-warning and innovation

monitoring. In the same period multiple patent information briefings were organized around themes including home appliance functional

technologies smart home technology pathways and cross-domain technology applications.

26Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Through multiple approaches the Company promotes the dissemination and implementation of IP

Patent Information Briefings Facilitating Consensus on R&D Topic Selection and concepts across the organization with related initiatives centered on the practical needs of frontline

Technology Pathways R&D gradually establishing a regular communication and learning mechanism. In 2025 a series of IP

training programs was organized covering practical topics such as patent inventiveness assessment

During the reporting period focusing on key product technology

proposal drafting standards infringement avoidance and patent intelligence-supported innovation.deployment the Company organized multiple patent information

The training was delivered through a combination of online and offline formats with certain courses

briefings to systematically review patent landscapes and

incorporated into the routine learning programs of R&D teams. Methods and tools including patent

technological evolution trends related to core home appliance

information analysis and TRIZ were gradually integrated into R&D design and technical discussion

functions. The inaugural briefing themed "blockbuster home

processes with cumulative participation exceeding 3000 attendees.appliance functions" constructed a functional technology

evolution map based on internal and industry patent data

presenting development milestones maturity levels and Specialized IP Training Embedded into R&D Process Management

application scenarios across different technical routes while

The Company organized a Specialized Intellectual Property Training program for R&D units

enabling on-site exchanges with R&D teams regarding key

Patent Information Briefing across the Group. Conducted in two phases the program comprised nine courses covering technology directions. The briefings attracted engineering and

modules such as patent inventiveness assessment technical solution extraction and

technical personnel from multiple R&D units achieving an on-

proposal drafting standards identification and avoidance of infringement risks and patent

site interaction and participation rate of 85%.information and intelligence-supported product innovation. The training was delivered through

a combination of in-person lectures and online live streaming with cumulative participation

The Company continues advancing the digitalization of IP management and has established an integrated exceeding 800 attendees covering major R&D centers and key technical teams. Following

platform system covering R&D intelligence analysis and full-process patent management. completion certain R&D departments incorporated patent search and inventiveness analysis

requirements into project initiation and technical review procedures. Relevant methods and

tools were simultaneously integrated into internal R&D guidance documents gradually forming

R&D departments have developed a technological innovation operational standards aligned with existing R&D management systems.intelligence platform that structures the technical system

according to a "product–component–part–function" hierarchy

forming nearly 4000 technical classification categories

to support rapid patent information retrieval and technical

direction assessment by R&D personnel.The Company has launched an enterprise full-process IP

management system comprising 16 management modules

integrating functions such as patent search application

and maintenance value evaluation patent navigation and

operation. This system enables electronic management

of processes and documentation and achieves data

connectivity with the project management platform PDM

system and patent agency platforms. Company Training Courses

27Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Intellectual property has become a critical institutional foundation for technological innovation and industrial competition and is also The Company has received multiple domestic and international

closely linked to the establishment of a fair and orderly market environment. Based on its business practices the Company regards professional recognitions in areas related to intellectual

IP protection as an essential component of long-term corporate development. In its operations the Company has progressively property and technological innovation and has participated in

formed core principles of respecting others' rights guiding industry norms and lawfully safeguarding its own interests while the development of relevant industry collaboration mechanisms.continuously advancing corresponding institutional arrangements and concrete actions around these principles.Among the first batch of National

The Company understands the difficulty of innovation and has invested substantial effort in Intellectual Property Demonstration

Respecting others' respecting others' intellectual property established a multi-level IP risk prevention and review Enterprises

intellectual property system and conducted IP risk screening for every product prior to market release achieving zero National Patent Operation Enterprise

lost patent infringement lawsuits. Initiated the establishment of the

Intellectual Property Alliance of

China Air Conditioning Industry and

Domestic

As a leader in the air-conditioning industry the Company has established the Intellectual Property served as its first chairman unit

Alliance of China Air Conditioning Industry to actively advance IP protection across the sector and Approved in 2025 as one of the first

Guiding the promote industry-wide respect for IP. For upstream enterprises The Company provides IP custodial "Intelligent Home Appliance Industry

industry to respect

intellectual property support to enhance patent quality and reduce infringement risks; for peer enterprises it promotes Intellectual Property Operation

technological advancement through patent licensing and transfer; and for downstream enterprises Centers" in China and promoted

it improves user consumption experience through patent licensing. industry innovation and development

If innovative achievements are maliciously replicated on a large scale corporate motivation for

innovation would be severely undermined and the national innovation environment that encourages Gold Medal of International

Courageously invention and creation would be seriously damaged. To safeguard its legitimate rights and interests Exhibition of Inventions of Geneva

defending its own International

intellectual property the Company has initiated infringement litigation against repeated and malicious infringement acts. Gold Award of International

The Company advocates "respecting others' intellectual property safeguarding one's legitimate Exhibition of Inventions Nuremberg

rights and interests and jointly building a favorable business environment".The Company has established a comprehensive full-chain multi-dimensional brand protection

model. Through coordinated online monitoring and offline enforcement the Company accurately

identifies and combats counterfeit and substandard products safeguarding brand credibility.Upholding its

corporate brand image This model integrates resources from market regulation authorities public security agencies

and safeguarding

consumers' legitimate and e-commerce platforms to establish a rapid response mechanism enabling swift handling of

rights and interests infringement leads and effectively curbing market irregularities. It further reinforces GREE's brand

image of "mastering core technologies" genuinely protects consumer rights and interests enables

consumers to purchase with confidence and use products with assurance and promotes the

healthy and orderly development of the industry.

28About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Indices and Goals

Management Indices

During the reporting period: As of the end of the reporting period: The only home appliance company to rank in the top 10 for invention

patent grants in China for ten consecutive years

"World-leading" technologies: 4 "World-leading" technologies: 50

Domestic and international standards led or participated in (formulation and

IP training coverage: 3107 employees Number of patent applications: 138935 revision): 942 including 62 international or overseas standards

Number of patent applications: 9411 Number of invention patent applications: 76928

Number of invention patent applications: 6084 Number of invention patents granted: 32317

Number of invention patents granted: 6434 Software copyrights: 100

Standards participated in and released: 85 Cumulative China Patent Awards received: 81

including 3 Gold Medal of invention patents and 4

Gold Awards for design patents

Cumulative Gold Awards at the International

Exhibition of Inventions of Geneva: 16; Gold Award

of International Exhibition of Inventions Nuremberg:

13

Management Objective Progress of 2025 Objectives

Top 10 in China for invention patent grants Achieved

29About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Pursuing Excellence Through

Meticulous Quality

Guided by the quality vision of "Made in China Loved by the World" the Company has

established a distinctive quality management system that treats product and service

safety as well as quality stability as long-term core management priorities and formed

a management mechanism covering the entire product life cycle ensuring the effective

implementation of quality requirements in business operations through institutional

development system operation and continuous improvement.Governance

The safety and quality management of the Company's products and services is overseen by the Executive Vice President (Chief Quality

Officer and Quality and Safety Director) with assistance from the President Assistant in charge of quality management. Centered 珠海格力电器股份有限公司认证证书

around the core functions of quality management specialized departments such as the Screening Plant Outsourced and Purchased

Parts Management Department and Quality Control Department are established respectively responsible for the quality of purchased

materials and supplier management production process quality control and issue rectification implementation. These responsibilities 测量管理体系认证证书

证书编号No. CMS粤[2024]AAA4483号

span key stages such as product design procurement manufacturing sales and service. 单位名称：珠海格力电器股份有限公司

单位地址：珠海横琴新区汇通三路108号办公608

兹证明贵单位在产品质量、经营管理、节能降耗、环境监测

The Company has established quality traceability systems covering the entire product lifecycle including the Measures for 等方面的测量管理体系符合 GB/T 19022-2003/ISO 10012：2003

《测量管理体系-测量过程和测量设备的要求》标准的全部要求，Administration of Product Quality Inspection and Production Process Quality and the Measures for Administration of Product 特发此证。认证范围及其他符合性说明详见附件。

（本证书的有效性依据认证公司的定期监督获得保持，在一个监督周期Sampling Inspection enabling full traceability from raw material procurement to finished product delivery providing foundational 后，与 CMS签发的《年度监督审核合格通知书》合并使用方可有效。）颁证日期：2024年01月11日签发人:

support for quality issue identification responsibility determination and continuous improvement. For products in specialized 有效期至：2029年01月10日

fields the Company implements the corresponding industry-specific quality management systems to ensure compliance with

higher-level safety and quality requirements. At present all manufacturing plants under the Company have obtained ISO 9001中启计量体系认证有限公司

Quality Management System Certificate and ISO 10012 Measurement Management System Certificate. 中国 北京 海淀区知春路 118号 9层A座 905E 100080网站地址:www.china-cms.org

In daily operations the Company convenes weekly quality meetings across business segments to continuously track quality

ISO 9001 Quality Management ISO 10012 Measurement

issues risk matters and rectification progress. Relevant information serves as an important input for operational management System Certificate Management System Certificate

promoting the continuous implementation of quality management requirements in all business links. During the reporting period

the Company experienced no major safety or quality liability incidents related to its products and services.

30Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Strategy

List of Product and Service Quality Risks and Opportunities

Risk Name Specific Description Impact Period Response Measures

If quality indicators are set improperly abnormality identification is delayed or Establish quality meeting and daily quality report monitoring

process control is inadequate batch problems may not be detected in time Short Term mechanisms; strengthen issue prevention and closed-loop increasing rework repair return and after-sales expenses and affecting customer management through the D-CTFP method and the "Five-Step

Quality Objective and Process Control Failure Risk trust Quality Prevention" approach

Unstable quality of outsourced and purchased parts may trigger batch quality Establish an outsourced and purchased parts management

abnormalities leading to increased claim costs inventory losses and potential Short Term department; integrate supplier quality into the management

recall risks affecting the gross profit level Medium Term process; implement a quality traceability and claims system to Supplier Quality Fluctuation Risk quickly identify responsibility

If the traceability chain for key materials and complete units is incomplete Integrate data from the MES logistics and error-proofing

the scope of issues may be difficult to define expanding the loss range and Short Term systems to achieve accurate linkage between materials and

Risk of Insufficient Product Traceability increasing compliance and reputational risks barcodes and strengthen full-process traceability capability

Differences in inspectors' capabilities or high turnover may weaken quality control Implement "Quality Training Campaign" skill training and

capability affect product consistency and increase hidden quality costs Medium Term assessment mechanisms; clarify job competency standards and

Risk of Uneven Personnel Capability and Turnover strengthen process supervision

If recall procedures are unclear or cross-department coordination is insufficient Establish a product recall management system; conduct

the efficiency of emergency response may decrease potentially amplifying Medium Term simulated recall drills annually; establish a multi-department

compliance risks and brand losses coordination mechanism covering quality control technology Risk of Inadequate Product Recall Response production and customer service

Opportunity Name Specific Description Impact Period Response Measures

As consumers increasingly demand product safety durability and service Build a quality management system covering the full product

experience high-quality products and stable services help enhance brand Medium Term lifecycle continuously optimize product consistency and stability

Brand Opportunities from Rising premium capability and customer loyalty supporting long-term stability in revenue Long Term and strengthen the closed-loop management of customer

Consumer Quality Awareness structure and gross margin levels feedback

Increasingly stringent product quality safety and compliance regulations create Improve the quality management system advance quality

Opportunities from Stricter Regulations relative advantages for companies with mature quality systems helping reduce Medium Term traceability recall drills and full-process control and enhance

and Rising Industry Standards compliance risks and raise market competition barriers system maturity

Industry digital transformation drives quality management evolution from

experience-based to data-driven and reduces defect rates rework rates and Advance quality information system construction strengthen data

Opportunities for Quality Management Upgrade after-sales costs through systematic collection and analysis thereby improving Medium Term monitoring analysis and traceability capabilities and enhance

from Manufacturing Digital Transformation operational efficiency management efficiency

Products with higher quality stronger durability and higher reliability are more Embed quality management throughout product design

Opportunities from Green Manufacturing and aligned with green consumption trends helping extend product lifecycle reduce Long Term manufacturing and service processes to improve product stability

Sustainable Consumption Trends full-lifecycle costs and enhance long-term market recognition and reliability

31About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Impact Risk and Opportunity Management

Under a unified risk and opportunity management framework the Company Made in China Loved by the World — Block Diagram of GREE's Perfect Quality Management Model

integrates quality-related risk identification and improvement mechanisms into

daily operational management. Quality risks are primarily identified through

quality information system monitoring quality meetings specialized inspections

and simulated drills and are continuously tracked across production operations

supply chain management and after-sales service processes achieving closed-

loop management. Made in China Loved by the World

For risk response the Company enhances its product traceability system

strengthens supplier quality management advances quality information-based Perfect quality

monitoring capabilities and implements specialized quality improvement

initiatives. These actions promote problem rectification and experience Procurement Manufacturing Sales & service

accumulation forming a closed-loop management mechanism and effectively R&D process process process process

reducing the likelihood of systemic quality risks. Meanwhile the continuous

enhancement of quality management capabilities helps strengthen user trust Target driven Integrated innovation Guarantee prevention

and brand stability laying a solid foundation for the Company's long-term and

stable development.Customer Process 5. Improvement

Quality Management System Development orientation 1.C 4.P system 4. Inspection

Internal optimization

Centered on the quality policy of "pursuing best quality establishing an and 3. Execution

international brand and building a century-old enterprise" the Company sets external Inspection Failure

"zero defects" and "the best service means no after-sales service required" technology 2.T 3.F mechanism

2. Planning

driven research

as quality goals gradually forming a quality culture centered on "strictness 1. Demand survey

practicality and innovation". On this basis the Company has established its

distinctive "Perfect Quality Management Model". Oriented toward customer Feedback Support

needs the model promotes the transition of quality management from

experience-driven to methodology-driven through the self-developed "Quality

Target Organizational Technical Standard Information

Technology Innovation Cycle (D-CTFP)" and the "Five-Step Quality Prevention"

management system system system system

approaches. Supported by target management technical system organizational

system standard system and information system this model incorporates

quality management approaches into core processes including R&D

procurement manufacturing and sales services thereby driving the sustained

implementation of quality improvement outcomes and strengthening product

consistency and stability.

32Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Reduction Fulfilling Ecological AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Responsibilities

Full-Process Quality Inspection P产产产产产 产 产 产 产 产 产 roduct Recall and Risk Drill Management

The Company has established a comprehensive product quality inspection mechanism covering the entire

process of material procurement product manufacturing and delivery. The Company employs about one The Company has formulated the Measures for Administration of Product Traceability and Recall

hundred quality inspectors implements multiple quality inspection processes conducts appearance Control covering product design procurement production and sales to achieve full-process

performance and type tests for outsourced materials during the inbound stage enforces process quality traceability from raw materials to finished products.control and inspection during the final assembly and supporting plant production processes and carries

out multi-dimensional tests on performance noise reliability and safety regulations in the experimental Product Traceability Management Approach

testing phase. Through a full-chain multi-tier quality inspection system the Company effectively ensures

product stability and reliability and continuously strengthens its capability for high-quality delivery.All raw materials and components must carry traceable records and labels including batch

Quality Improvements and Enhancements number production date specifications and supplier information;

The Company continues to advance specialized quality improvement and All products are managed using barcodes with each barcode number corresponding to the

quality breakthrough innovation initiatives continuously improves product actual product. These barcodes serve as the primary identification markers for the products.quality levels through process optimization process enhancement and The Measures for Administration of Barcode and Certificate is formulated as the basis for

strengthened control at critical control points and gradually reinforces a this management system;

prevention-oriented quality management mechanism. These practices not

only focus on issue correction but also emphasize front-end prevention For export products batch management is also implemented with export batch numbers

and systemic improvements driving the transition of quality management corresponding to production order numbers;

from passive response to proactive control.The Company records and manages quality information for all products documenting

details such as barcode numbers export product batch numbers production dates shifts

"Quality Training Campaign" Special Initiative Enhances Frontline Inspection Capabilities and specifications of key components.In response to the national "Quality Month" initiative the Company actively organized "Quality Training

Campaign" special activity for the Quality Control Department covering frontline quality personnel

In accordance with the Interim Provisions on Consumer

including inspectors laboratory technicians sampling inspectors first-article inspectors patrol

Product Recall Management the Company has established

inspectors and team leaders. The activity addressed recent typical production and after-sales quality

a product recall management system and corresponding

issues and combined theoretical training hands-on practice skills competitions and knowledge

working mechanisms forming a recall management

contests tailored to specific roles. Training content covered required job knowledge inspection

process that covers risk identification decision initiation

standards and key operational requirements. Each department designated responsible persons to

implementation and effectiveness evaluation. Once it is

advance the implementation keep attendance examination acceptance and process records during

discovered that products already on the market or delivered

training and assess both theoretical and practical results.to distributors pose compliance risks or safety hazards

The Company also established process supervision and spot-check mechanisms requiring weekly the Company may promptly initiate recall procedures in

progress reporting and accountability for training effectiveness. The initiative aimed to strengthen accordance with established protocols to retrieve and

company-wide quality awareness enhance frontline execution capability and process control capacity dispose of the relevant products effectively safeguarding

and provide foundational support for quality risk prevention. consumer rights and interests.

33About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Conditions for Initiating a Product Recall Quality Digitalization Development

The product is found to be non-compliant with applicable laws and regulations in the place The Company continues to advance the digitalization of quality management. During the reporting

of sale; period the Company independently developed a Group-level quality traceability and claims

The product contains hazardous quality defects that may cause harm to the personal or management system integrating data from the MES system material scanning and error-proofing

property safety of users or others; system and logistics system to achieve precise linkage between key core materials and complete-unit

Batch-level product quality issues are identified; barcodes thereby effectively improving the efficiency of responsibility traceability.Non-compliant HSF output is discovered after product delivery requiring recall in

accordance with applicable laws and regulations or customer requirements. At the same time the Company has established a Group-level daily quality report monitoring

management system to systematically monitor key quality data in the manufacturing processes of

For recalled products the relevant departments including Quality Control Technical Support each base. This facilitates the identification of potential risks and common issues promotes timely

Production Management Operations Management and Customer Service coordinate to carry out rectification and provides data support for continuous quality improvement.handling measures and determine solutions such as repair rework or scrapping based on specific

circumstances. The Customer Service Department concurrently conducts user communication and Indices and Goals

follow-up collects usage feedback and incorporates the relevant information into customer satisfaction

management and continuous improvement processes.Management Indices

The Company organizes simulated product recall drills annually and conducts practical inspections

of recall procedures response mechanisms and responsibility allocation thereby continuously

strengthening its capability to address quality risks. During the reporting period no product recall Number of major safety and quality liability incidents related to products or services: 0

incidents occurred.Number of product recall incidents: 0

Simulated Product Recall Drill — Validating Traceability and Collaborative

Response Capability

In October 2025 the Company conducted its annual simulated product recall drill. Using an

overseas customer complaint as the scenario the recall process was initiated to rapidly trace the

product model production batch key components and supplier sources while simultaneously Management Objective Progress of 2025 Objectives

verifying inventory and identifying the scope of impact.The drill covered key stages including complaint acceptance technical verification recall decision-

making compliance communication supply chain tracing material preservation and return- Year-on-year decrease in

Achieved

package handling. All departments advanced the process in coordination according to their after-sales failure rate ≥ 7%

respective responsibilities and completed the full closed-loop workflow within the prescribed

timeframe. The initiative served to verify the effectiveness of the Company's product traceability

capability and recall mechanism providing an important basis for subsequent system optimization.

34About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Craftsmanship-oriented Service Enhancing Reputation

The Company adheres to the service philosophy that "your satisfaction is our top priority" regards user satisfaction as the purpose of its customer service and continuously improves the development and

operational management of its service system. The Company has established a three-tier after-sales service system (GREE headquarters customer service center + regional sales companies' customer service

centers + service outlets) forming a nationwide service network and response mechanism and providing users with continuous and stable service support.The Company strictly complies with laws and regulations including the Provisions on the Responsibility for Repair Replacement and Return of Certain Commodities the Law of the People's Republic of China on the

Protection of Consumer Rights and Interests the Regulation on the Implementation of the Law of the People's Republic of China on the Protection of Consumer Rights and Interests and the Product Quality Law

of the People's Republic of China and has established standardized customer service information handling procedures and a closed-loop management mechanism covering issue acceptance classified handling

follow-up supervision and result feedback. In addition relevant procedures have been integrated into daily operational management.Full-Cycle Service

Management

Based on i ts exist ing customer Pre-Service In-Service Post-Service

Preparation Fulfillment Review

service governance structure the

Company defines management and

control requirements centered on

"frontline performance fulfillment and Personnel control: All frontline engineers must Fulfil lment control: When arriving on site Sa t i s fac t ion fo l low-up : A f te r se rv ice

service closed-loop management" be certified before taking up their posts. They engineers need to proactively present their completion the headquarters customer

are required to complete training in product service qualification certificates. The entire service center conducts a satisfaction survey

and cont inuously moni tors and knowledge maintenance skills service etiquette service process is visualized and traceable to via SMS. For any unsatisfactory services

manages service compliance safety and safe operation (e.g. working at height prevent irregular charges unnecessary repairs follow-up actions are initiated.and service experience quality. electrical safety) and may undertake service or poor service attitude.assignments only after passing assessments. Deep d ive in to compla in ts : For user

Regular skills retraining and safety evaluations Safety control: For high-risk services such complaints (e.g. illegal charges inadequate

are required. as high-altitude installation and electrical repairs safety hazards) a dedicated

maintenance engineers must wear protective team conducts a special review to identify

Tools and accessories control: Engineers must equipment in accordance with operational responsible parties implement rewards and

carry professional maintenance tools when standards. Upon complet ion of serv ice penalties and improve service processes.providing on-site service. Tools are subject to engineers need to proactively explain safety

periodic safety inspections and unqualified tools precautions to users and may leave the site

are prohibited from the use. Accessories used only after the user signs to confirm safety.during maintenance must be genuine original

parts from GREE and are managed under an On-site supervision: Regional service centers

"on-demand requisition + returning old parts" assign dedicated personnel to follow engineers

system to prevent the use of counterfeit or for on-site services to check service procedures

substandard parts. safety practices and user communication

identify issues and urge rectification.

35About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Customer Complaint Handling

The Company strives for a "zero complaints in after-

The Company strictly implements the "Three Guarantees" sales" goal. The Company collects user feedback through

policy and adopts rapid response and classified handling During the reporting period the Company multiple channels including the service hotline WeChat

measures for customer complaints and negative reviews. official account online customer service platforms and

Based on the Customer Service Emergency Management

maintained a 24 -hour response standard email and regularly conducts customer satisfaction Measures customer service personnel are authorized to offer surveys. The results of these surveys indicate that the

compensations such as point rewards extended warranty keeping communication channels open with a Company's customer satisfaction has remained above 99%

services or free cleaning as remedial actions in necessary complaint resolution rate for four consecutive years with the data guiding service

cases. For complex or special complaints the Company 100% optimization and process improvements.provides customized solutions and dedicated communication

services with the goal of achieving customer satisfaction. Key Performance

2023

Launching the National Unified Service Hotline 95082

99.61%2024

To optimize user service experience the Company upgraded its original hotline (4008365315) Customer

to the national unified service hotline 95082 starting September 15 2025. This five-digit Satisfaction 99.88%

number is approved by the Ministry of Industry and Information Technology and serves as the Customer

Company's official unified service entry. The Company has simultaneously enhanced related Satisfaction

service functions:

2025

Official certification Intelligent response Integrated services

greater assurance greater efficiency more convenient 99.97%

As an official service channel The hotline system integrates The 95082 hotline is linked to Customer

the 95082 number helps users intelligent voice recognition the "GREE Service" WeChat Satisfaction

easily recognize and use it automatically identifying and official account and mini-

reducing the risk of mistakenly redirecting common inquiries program supporting online

using unofficial channels with a collaborative mechanism appointment scheduling

i n v o l v i n g h u m a n s e r v i c e progress tracking and other

representatives service functions

The launch of this service hotline is a concrete measure to further optimize the customer

service system and improve service accessibility reinforcing the service philosophy that "every GREE Service Hotline

small matter of the user is a big matter for GREE".

36Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Service Capability Development

The Company continues to advance sales and after-sales collaboration

exploring an integrated sales-and-service operation model. By providing

After-Sales Installation and Maintenance Skills Competition

after-sales outlet marketing capability training enhancing terminal store

capabilities and empowering with digital tools some service outlets

have gradually developed integrated service and sales functions. During the report ing period the Company

Adhering to the concept of "service without limits" the Company organized the "GREE Cup" National After-sales

continually strengthens the professional skills of after-sales personnel. Installation and Maintenance Skills Competition

Each year GREE develops and updates management documents ta rge t ing the na t ionwide res ident ia l and

such as the On-site Service Manual and New Product Technical Guide commercial after-sales service systems. A total of

regularly organizing after-sales technical training. The Company 30 residential after-sales service personnel and

also leverages its WeChat official account platform "GREE After- 62 commercial after-sales service personnel from

sales Engineers" to provide frontline staff with installation standards across the country advanced to the final stage.troubleshooting solutions and related resources promoting the The competition focused on practical scenarios

continuous improvement of service capabilities. while simultaneously fostering technical exchanges

and experience sharing. This event has become

Unified Customer Service Platform Promotes Service

one of the Company's key ways to assess the

Digitalization and Intelligence Upgrade

professional capabilities of service personnel and

Starting in June 2025 Gree Electric Appliances initiated the drive skills development forming a linkage with the National After-sales Installation and Maintenance

development of the "Unif ied Customer Service Platform" after-sales talent training system. Skills Competition Launch Ceremony

consolidating various service channels including the service hotline

online stores mini-programs and H5 pages. This integration

facilitates the "unified access unified reception and unified

service" operation model. By the end of December the system

Informatization of Commercial Air Conditioner After-sales Quality Management

had completed more than 40 functional iterations continuously

enhancing system stability and operational efficiency.To improve the after-sales quality management level of commercial air conditioners the Company initiated a commercial air conditioner

To optimize service efficiency the Company simultaneously after-sales quality management informatization project and developed and launched a full-process digital information system for after-

introduced tools such as intelligent voice navigation and text- sales quality management standardizing and systematizing the quality issue handling process.based robots. In 2025 the proportion of human reception dropped

to 41.82% while the self-service rate increased to 24.72%. The The system optimizes service processes through digital means realizing quality data connectivity between service providers sales

knowledge base system added over 120000 pieces of knowledge companies and the headquarters' commercial air conditioner after-sales division. Over time this system has gradually formed a full-link

throughout the year a 149.67% year-on-year increase. It also closed-loop management mechanism covering problem discovery processing tracking and feedback. Additionally multi-dimensional

completed data integration with the product parameters system and digital reports have been developed enabling collaborative quality management between internal and external channels. The data

retail distribution system providing frontline service personnel with accumulated in this system has been used to support product development technical evaluations and parts inventory management

more timely and comprehensive knowledge support. providing data-driven support for continuous improvement in product quality and customer satisfaction.

37About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Reduction Fulfilling Ecological AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Responsibilities

Improving Quality and Efficiency Through Full-chain Digital Intelligence

Gree Electric Appliances vigorously promotes digital and intelligent transformation to enhance

corporate competitiveness in the digital era. The Company continues to improve its digital business Industrial Internet Platform for Large-

operation methods and operational systems using digital technologies to connect all links scale Manufacturing Industries

across its entire value chain and drive efficiency improvement value creation and enhancement

of business performance. Closely aligned with GREE's strategic business planning and guided To address the collaborative needs of the large-scale home appliance

by the principle of improving both "efficiency and effectiveness" the Company has achieved manufacturing industry the Company has developed an industrial internet

comprehensive breakthroughs in full-value-chain data operation and intelligent operation. platform for large-scale manufacturing industries and pioneered the "GREE

Coordination Hub" collaboration model. Breaking through traditional chain-type

and star-type collaboration architectures the Company has established a multi-

Relying on the national key R&D program "R&D and Application of Industrial level networked collaborative ecosystem led by core enterprises enabling full-

Internet Platforms for Large-scale Manufacturing Industries" the Company dimensional collaboration across "resources - business - links - value".Industrial has gained industrial chain collaboration platform capabilities and promoted

Chain collaborative applications between upstream and downstream enterprises in

Collaboration areas including order coordination plan linkage and information sharing thereby The platform deeply integrates next-generation information technologies

facilitating resource integration and business collaboration and improving the including blockchain big data artificial intelligence and digital twins and

overall operational efficiency of the industrial chain. establishes an integrated technology system covering trusted data sharing

business collaboration optimization operational management and control and

Focusing on core business areas including manufacturing supply chain forecasting and early warning. The platform connects the entire value chain from

management quality control and human resources the Company has steadily R&D and design bulk procurement and collaborative manufacturing to customer

advanced ERP system upgrades and the demonstration application of self- service effectively addressing industry pain points such as data silos and Internal

Digital and developed systems such as MES WMS and QMS gradually establishing a delayed collaboration. Its open and scalable architecture provides an advanced

Intelligent digital operation system featuring unified system architecture standardized data and practical system solution for building an efficient intelligent and sustainable

Transformation

standards and centralized group management. This has enabled unified data industrial chain collaboration ecosystem.collection unified data standards and shared data utilization while enhancing

operational transparency and cross-department collaboration efficiency. Based on the platform Gree Electric Appliances (Zhuhai Jinwan) Co. Ltd.has established a full-process collaborative system covering "customer -

R&D - procurement - manufacturing - services" and implemented the "full-

Based on the industrial internet platform and unified data foundation the value-chain collaboration" smart factory model achieving a 46% improvement

Smart Company promoted the development of a digital intelligence system at the in management efficiency a 100% increase in per capita efficiency and

Factory Gaolan Factory improving capabilities in production execution quality traceability a significant improvement in delivery speed. The platform has also been

Construction and equipment management. This received industry recognition and the factory demonstrated and applied in industries including automotive and electronic

was selected as a pioneer-level intelligent manufacturing factory. information showcasing strong cross-industry adaptability and replicability.

38About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

During the reporting period the Company received several important certifications and honors in digital

GREE Selected as a "Pioneer-Level" Smart Factory by the Ministry of Industry and intelligent transformation including:

and Information Technology

In December 2025 Gree Electric Appliances (Zhuhai Jinwan) Co. Ltd. was successfully

selected for the first batch of "pioneer-level" smart factories in China with the project "GREE

Coordination Hub Air Conditioner Smart Factory of the Full Value Chain". It is the only

company in Guangdong Province to be included in this list.Pioneer-level smart factories represent the highest tier explored and cultivated under the

smart factory gradient cultivation initiative jointly launched by six ministries and commissions

including the Ministry of Industry and Information Technology and the National Development

and Reform Commission in 2024. The system consists of four tiers: foundational advanced

excellent and pioneer levels. As of the end of 2025 China had established more than 35000

foundational smart factories more than 7000 advanced smart factories more than 500

excellent smart factories and 15 pioneer-level smart factories.The selected smart factory integrates one Wuhan Gree Hefei Gree Luoyang Gree AAA-Level

industrial internet platform one multi-source Wuhu Gree Nanjing Gree Hangzhou Certificate for the Integration

Gree Ganzhou Gree Suqian Household

heterogeneous data middle platform eight key of Informatization Appliances and Gree Electric (Meishan)

business systems and AI models. It features and Industrialization were awarded honors as Advanced-

self-developed "purely domestically produced" Management System Level Smart Factories

intelligent manufacturing equipment with an

automation rate exceeding 80%. The factory

achieves interconnected business systems The project "GREE Coordination

Jinwan Gree was approved as

data sharing and interoperability and AI model- Hub Air Conditioner Smart Factory a "5G Fully Connected Factory" of the Full Value Chain" was

driven operations addressing critical challenges by the Ministry of Industry and selected for the 2025 Pioneer-Level

such as siloed management in manufacturing Information Technology Smart Factory Cultivation List

departments data islands manual decision-

making post-event management and outdated

equipment. This enables agile operations and

flexible manufacturing boosting operational Gree Electric Appliances Selected The project "Development of a Digital Ecological System for Controller Manufacturing Based on AI

efficiency and business performance. as a "Pioneer-Level" Smart Factory Technology" was selected as a typical case for digital transformation in manufacturing enterprises

by the Ministry of Industry and by the Ministry of Industry and Information Technology for 2025

Information Technology

39Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Rigorous Data Protection for Enhanced Security

The Company strictly complies with national laws and regulations on cybersecurity and personal information protection and fulfills its data security responsibilities through a combination of institutional constraints

capability development and drills. During the reporting period the Company did not experience any information security incidents or user privacy breaches.Improving the Information Security System

In accordance with the Cybersecurity Law of the People's Republic of China the Personal Information The Company has obtained ISO 27001 and ISO 27701 certifications achieved deep

Protection Law of the People's Republic of China and international standards such as ISO 27001 and integration of the two management systems and established an integrated management

ISO 27701 the Company has formulated and issued institutional documents including the Administrative framework demonstrating the maturity and standardization of its information security

Measures for User Privacy Protection which systematically regulate technical protection management management system. In terms of compliance management the Company's core business

processes and personnel behavior. Meanwhile the Company continues to strengthen its data security and systems have successfully passed Multi-level Protection Scheme (MLPS) assessments

customer privacy protection system by establishing a three-tier governance structure. and privacy impact assessments have been completed for all key business scenarios

ensuring full compliance with applicable requirements. Meanwhile the Company has

formulated more than 50 management measures covering access control and emergency

The highest decision-making body and ultimate responsibility response thereby establishing a comprehensive institutional framework. In terms of

entity; consisting of the Cybersecurity and Information technology and asset management the Company deploys protection means including

Security Leadership Team (including the Chairman and senior file encryption to reduce the risk of data leakage. The Company has established an asset

Decision- management) classification and grading management mechanism and completed comprehensive asset

making Level inventory and risk identification.Respons ib le fo r f o rmu la t i ng cybe rsecu r i t y

management policies and technical standards

Supervisory Level and supervising their implementation; consisting

of members of the Office of the Cybersecurity and

Information Security Leadership Team

Responsible for carrying out cybersecurity

and information management work according

Execution Level to the requirements of the Leadership Team

Office; consisting of information security ISO 27001 Information Security ISO 27701 Privacy Information Security

officers from various units and subsidiaries Management System Certificate Management System Certification

40About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Information Security Emergency Management Information Security Emergency Response Plans

The Company adheres to the principle of "prevention first combined with drills" and systematically During the reporting period the Company formulated and implemented 27 emergency response plans

carries out security awareness training and emergency response capability development. By providing covering network communications system platforms application services and information security. The

comprehensive training for all employees we enhance awareness of security risks. Routine emergency feasibility goal rationality and safety of each plan are evaluated by the lead of the drill team. Each plan

drills and practical testing are conducted to continuously evaluate and strengthen the emergency undergoes drills within the designated cycle primarily ensuring the objectives through techniques such

response mechanisms ensuring risks are identified controlled and manageable. as active-active/multi-active architectures backup recovery mechanisms and failover processes. At the

end of each year a review is conducted on all completed plans a summary report is generated and

The Company has established and continuously improved its information security incident response the drill plan for the following year is developed.and handling mechanism and has formed a dedicated information security emergency response team

responsible for the overall coordination of prevention monitoring reporting and emergency response.The team operates with a hierarchical command and collaboration mechanism to ensure efficient and Phishing Email Drill

orderly emergency responses:

The Company continuously enhances employees' awareness of cybersecurity and evaluates

Emergency response team leader: Responsible for overall coordination the effectiveness of existing network security measures. The Computer Center regularly

Emergency and decision-making approving and initiating the appropriate level of organizes phishing email drills. The drills cover all users of external email accounts and

response team emergency response plan organizing resources for recovery actions and include four typical scenarios: account expiration reminders policy declaration notices holiday

leader promptly reporting major information security incidents to the Company's arrangement notifications and account security risk alerts. Based on analysis of the drill results

personal information protection officer and senior management. targeted cybersecurity training is further strengthened for users. Through the combination

of regular drills and training programs the Company gradually improves employees' ability

to identify cybersecurity risks such as phishing emails thereby reinforcing the Company's

network security defenses.Emergency response team deputy leader: Responsible for on-site

coordination during emergency handling overseeing the implementation

Emergency of the plan ensuring smooth coordination between different stages and During the reporting period

response team

deputy leader organizing post-incident investigations cause analysis damage assessments

and rectification experience summaries. This role also coordinates internal Number of data security incidents Number of customer privacy

departments and external partners for joint response efforts. leakage incidents

00

Emergency team members: Responsible for carrying out specific response Employee coverage Number of Total

tasks including technical investigation attack tracing vulnerability analysis rate for data security data security participation in

Emergency team and customer privacy emergency data security business recovery evidence collection and preservation and assisting

members protection training drills emergency drills

in impact assessment and incident reconstruction related to personal

information security incidents. 100% 27 82 participants

41About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Employee Employment and Rights and Benefits

The Company bases its talent development on legal employment management and comprehensive rights protection. It strictly complies with

all relevant labor laws and regulations adheres to the principles of equal employment and standardized management and has established During the reporting period

a lawful compliant fair and just employment system. It fully implements employees' legal rights and interests continuously improves

welfare protection labor protection and other supporting mechanisms safeguarding employees’ vital interests and creating a safe healthy

harmonious and inclusive working environment. This ensures that employees and the Company grow together and share in the fruits of

development. The Company experienced no

labor disputes

Compliant Employment

The Company strictly complies with the Labor Law of the People's Republic of China Labor Contract Law of the People's Republic of China

Provisions on the Prohibition of Using Child Labor and other relevant laws and regulations. The Company also follows the International

Labour Organization (ILO) conventions (including Convention No. 138 on Minimum Age and Convention No. 182 on the Worst Forms of Child

Has not had any strikes or work

Labour) and has established the Employee Recruitment Management Measures.stoppages in the past three years

In accordance with the Employee Recruitment Management Measures

the Company adhered to the principles of "open recruitment equal

competition and selection of the best candidates". We followed local labor

laws and regulations when recruiting strictly prohibiting child labor forced The social insurance coverage

labor and similar unethical practices. Gender ethnicity and regional biases rate was

were completely excluded from the recruitment process. We standardized

resume screening and interview evaluation criteria rigorously implementing

anti-discrimination measures in employment and respecting employees' 100%

rights to freely assemble and form associations under the law. Special

support policies were implemented for specific groups such as new college

graduates and veterans. For instance veterans were allowed to retain their The employee labor contract

signing rate was also

positions and continue their work experience accumulation during their

military service and were given priority for training and development upon

their return to the Company. Moreover the Company actively implemented 100%

policies to stabilize employment continuously releasing sufficient job

resources to ensure fair employment opportunities for diverse groups. Inclusion in the Forbes 2025

During the reporting period the Company was named to the Forbes’ 2025 World's Best Employers

World’s Best Employers.

43Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Employee Structure Democratic Communication

The Company continuously strengthens the development of democratic management and employee communication mechanisms. It has

Total number of employees 71966 legally established a labor union and set up a workers' congress creating a sound organization-wide democratic management framework

Frontline that spans all levels. Additionally the Company has built a systematic and routine democratic communication system establishing an open

employees 66526 and transparent platform for employee participation ensuring the protection of employees' legal rights and democratic participation.Middle 产产C产产产产产产产 hannels and Methods of Democratic Communication

management 5155

Senior

management 285

The Company has leveraged the Each department has designated Departments hold regular

Finance personnel Administrative union's WeChat official account to union chairpersons and officers democrat ic l i fe meet ings

1092， personnel create a "Smart Union" platform allowing employees to submit their prov id ing employees wi th

1.52% 2865， which features an " Interact ive concerns or feedback at any time. face-to-face communication

3.98% Communication" sect ion where The designated personnel follow up opportunities to fully voice

Technical employees can independently select and handle the requests; t h e i r o p i n i o n s o n t o p i c s

personnel the relevant department and initiate such as working conditions

15947， direct conversations allowing issues management optimization etc.

22.16% to be addressed with just one click;

Sales During the reporting period the workers' congress rigorously followed the Company Law of the People’s Republic of China and Workers'

personnel Congress Operating Procedures to review and approve four key resolutions related to employee rights. These actions fully ensured

2378， Production employees' participation and supervisory rights in corporate governance and emphasized their institutional role in improving the Company's

3.30% personnel governance structure. The Company's labor union representing the employee side signed a collective agreement with the Company

49684， with the collective agreement covering 100% of the employees. The agreement comprehensively addresses key areas such as employee

69.04% health and safety working conditions training and career development diversity and inclusion and anti-discrimination and anti-harassment

systematically safeguarding employee rights at the institutional level.

44Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Compensation and Performance

The Company strictly complies with national laws and regulations having established systems E产产产产产产 mployee Stock Ownership Plan

such as the Employee Performance Management Measures and a comprehensive compensation

management system to protect employees' lawful rights to remuneration. The Company has Employee incentive mechanisms are improved to promote

established a compensation structure consisting of “fixed income + variable income” for 100% of high-quality development of the Company. To share the

its employees (including management). The variable income is linked to dynamic factors such as Company's development achievements with employees

individual performance appraisals fully reflecting the fairness and incentivizing nature of compensation enhance their motivation and creativity and ensure the

distribution. The Company has set up a diversified bonus system including proposal improvement realization of strategic development and operational goals the

awards performance bonuses year-end bonuses and annual project assessment bonuses. The Company had implemented three Employee Stock Ownership

assessment criteria focus on goal achievement and tangible results using performance as the core Plans (ESOPs) as of the end of the reporting period. The

evaluation basis to ensure objective fair and clearly differentiated outcomes. The evaluation outcomes incentive scope covers the Company’s directors (excluding

serve as the primary basis for compensation incentives and rewards driving improvements in both independent directors) senior management middle cadres of

organizational efficiency and employee capabilities. the Company or its holding subsidiaries and core employees.The total number of employees participating in each ESOP

Grievances and Feedback is at the forefront of the industry further improving the

mechanism for sharing benefits and risks among shareholders

T h e C o m p a n y h a s e s t a b l i s h e d a management middle cadres and core employees.standardized performance grievance

channel. If employees disagree with the

current performance evaluation they

can first communicate with their direct N产产产产产产 产 产 产 产 产 产 umber of Employees Covered by the ESOP

supervisors. If no agreement is reached

they can submit a written grievance

to their unit during the performance 4513 3170 5141

disc losure per iod. Upon receiv ing

the grievance the unit shall promptly

communicate and provide feedback on the First Second Third

resolution. If employees have concerns ESOP ESOP ESOP

about the fa i rness of performance

management they can submit a written

a p p e a l t o t h e H u m a n R e s o u r c e s

Department which will investigate and

handle the issue according to regulations.

45Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Employee Care

The Company strictly complies with national and local laws and regulations improving its system for employee allowances benefits and holiday entitlements. We implement statutory allowances such as high-

temperature and hazardous position allowances and provide functional allowances as needed including those for seniority meal expenses shift work and skills. The Company also makes contributions to social

insurance and housing provident funds strengthening the foundation of employees' livelihood and career protections. In addition the Company has established policies on parental leave and nursing leave which are

implemented by subsidiaries in accordance with local laws and company policies. The Company's allowances benefits and leave policies cover all employees.Employee Allowances Benefits and Types of Leave

Statutory Functional Statutory Non-Statutory Types of

Allowances Allowances Benefits Benefits Leave

High-temperature allowance: Seniority allowance: Determined Social insurance: The Company Housing benefits: Employees Annual leave personal leave

Issued in accordance with based on the employee's length and employees each contribute are provided with fully equipped compensatory leave sick leave

national and local regulations on of service with the Company. to social insurance according dormitories ensuring a "move-in work injury leave marriage

high-temperature allowances. to national and local laws and ready" experience. leave funeral leave maternity

Meal allowance: Provided to regulations and company leave reward leave family

Hazardous position allowance: offset employees' meal expenses regulations. Transportation benefits: Free shuttle planning operation leave

Based on national laws and during work hours. buses cover the Zhuhai area and the prenatal check-up leave

regulations and company Housing provident fund: Both the locations of each subsidiary ensuring breastfeeding leave break

regulations the allowance is Shift work allowance: Offered Company and employees make convenient commuting for employees. time for pregnant employees in

calculated according to job risk to employees working mid or equal contributions based on the their seventh month or beyond

levels and the number of days late shifts as a form of special rate determined by the workers' Health checkup benefits: The paternity leave parental leave

worked in a month. recognition for irregular working congress in compliance with Company offers health checkups for and nursing leave.hours. national and local laws and employees.Other statutory allowances: regulations.Provided in compliance with Skills allowance: Adjusted or Tuition/Certification fee

dynamically updated national removed based on the employee's reimbursement: Reimbursement is

laws and regulations. skill level assessment. available for obtaining associate

bachelor’s or master’s degrees

Other allowances: The Company or for obtaining special operation

may introduce additional permits or special equipment

allowances as needed based on safety management and operation

specific policies or notifications. certificates required for the position.

46Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Working Conditions Employee Well-being

To regulate employees' working conditions safeguard employees' legal rights and work-life balance The Company focuses on creating a comprehensive welfare and support system for employees and

and enhance work adaptability and well-being the Company has established clear and compliant has continuously increased welfare investments and established a holistic system to ensure employee

management specifications regarding work arrangements and overtime management. This ensures that well-being. It has established comfortable well-equipped employee living areas (GREE Kangleyuan

both parties' rights and responsibilities are defined and that work is conducted in an orderly manner Phase I and II etc.) and built GREE School in 2018 to address the problem of employee children's

with the full guarantee of employee rights. education. Additionally a large shuttle bus system has been set up and employees are provided with

custom work uniforms catered dining facilities communication packages and annual health checkups.The Company is also steadily advancing the construction of GREE Hospital further ensuring that

employees are provided with comprehensive care across all aspects of life. Moreover the Company

Working hour mechanism产产产产

has established a Sunshine Fund to provide targeted assistance to employees facing financial

While adhering to standard working hours each unit can set specific shift difficulties ensuring the protection of their rights and benefits and improving their well-being and

schedules which shall be approved by the Human Resources Department and happiness.followed by employees.Satisfaction Survey

The Company conducts annual employee satisfaction

surveys. During the reporting period surveys covering multiple

aspects—such as job content and career development

work environment and team atmosphere management and

Overtime management

leadership compensation and benefits company operations

The Company shall not compel or covertly compel employees to work overtime. and party-building activities—were conducted both online and

Any overtime worked shall be compensated with corresponding time off or in-person. The surveys covered various employee groups.overtime pay. Employee satisfaction reached a score of 84.8 an increase

of 0.9 points compared to the previous year marking several

consecutive years of improvement.Based on the feedback from employees and areas with lower

satisfaction levels identified in the survey the Company

Health first has formulated and implemented a series of targeted

improvement measures. These include optimizing the

Employees who are unwell pregnant (in the seventh month or later) or frontline work environment and office hardware/software

breastfeeding shall not be scheduled for extended working hours. enriching training formats and content upgrading employee

shuttle and accommodation services and offering diverse

physical and mental health activities. These efforts are aimed

at continuously improving employee satisfaction.

47About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Talent Training and Training Management

Development

Through the long-term implementation of the system and the establishment of a regular training mechanism the Company continuously

Talent is the core driving force for the high-quality development empowers employees and injects sustained and strong internal momentum for its own development. The Company has established and

of the company. The Company adheres to the core philosophy of implemented policies such as the Employee Training Management Measures Training Funds Management Measures and Internal Instructor

talent self-cultivation placing great importance on the growth and Management Measures to ensure the rational allocation of training resources and provide systematic support for employees' career

development of employees throughout their entire career lifecycle. development. The Company adheres to the core philosophy of talent self-cultivation with a focus on capacity building and has created a

We continuously improve our talent training and development four-level training system: company → department → division → individual. This system ensures systematic hierarchical and precise talent

system. Through systematic institutional frameworks innovative development. In line with business development needs and the career development paths of various roles the training system is clearly

and diversified training models and comprehensive development divided into the following main categories: new employee onboarding training job skills enhancement training management capability

support the Company establishes growth pathways for employees development training and specialized safety training. This structure ensures that the growth needs of all employees (the Company has no

at various levels and from diverse backgrounds. This approach part-time staff) are fully covered. The training organization adopts a combination of online and offline methods supplemented by both internal

supports employees in enhancing their skills and advancing their and external training with the Human Resources Department coordinating the overall planning and business departments assisting in the

careers while aligning individual development with the Company's implementation. Training is conducted through various formats including regular courses thematic seminars and on-the-job coaching.strategic objectives for a synergistic and integrated approach. Additionally a comprehensive training evaluation and feedback mechanism is established forming a closed-loop management cycle of

"planning – implementation – evaluation – optimization".Four-Level Training Plan

产产产产产产F产产产产产产 our-Level Learning&Training Plan System Involving All Staff

Level Training plan Training focus

Strategic level Company level Strategy support for Key business Promotion of plan (level 1) implementation Key group training development cultural quality

During the reporting period

Department level

plan (level 2) Project operation of key business In-depth training of key groups

Business level

the average training hours per Division level Business innovation Team development Management Technical experience

employee exceeded plan (level 3) development construction experience inheritance inheritance

50 hours Individual level Working performance Occupational Knowledge and Performance level plan (level 4) improvement development challenge skill reserves

48Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

During the reporting period the Company continued to optimize its employee training system focusing

on two core areas: refining training types and building a comprehensive course system. On the training AI Empowerment Training

front the Company maintained and enhanced core categories such as new employee onboarding

training job skills improvement training and management capability development training ensuring In June 2025 the Company launched the "Smart Future:

full coverage of employees' career development needs across the entire lifecycle. On the curriculum GREE AI Empowerment Training Program" aimed at

side the courses were systematically planned based on business development and job requirements enhancing employees' AI expertise and practical capabilities

covering key company-level topics such as AI empowerment lean management cutting-edge and cultivating digital and cross-functional talent. The training

technologies and general content on product compliance and safety. was closely aligned with business scenarios and focused

on problem-solving. It followed a phased tiered approach

产产产产产产T产产产 iered Talent Training Types incorporating online challenges case studies hands-on

exercises and a point-based progression system to track

A systematic development plan is formulated for new hires featuring centralized training upon

New learning outcomes. The program incubated 10 internal AI onboarding that covers corporate culture management systems and core business processes.trainers and established a full-stage curriculum system AI Training Classroom InteractionEmployee The HR Department collaborates with various functions to tailor development programs based

Training on position-specific competency requirements. Through one-on-one mentorship and the "master- covering “Basic Theory + Tool Practice + Scenario Application”.apprentice" model new employees are supported in quickly integrating into the Company and

mastering job-essential skills."GREE Star" 2025 Graduate Onboarding and Development Program

The Company conducts tiered and categorized vocational skills training closely aligned with business

needs focusing on key business areas such as technology R&D production operations quality The 2025 graduate training program was developed under the "3-6-1" system model with

Vocational

management and functional support. This training covers multiple job categories and precisely matchesSkill unified planning and execution of training initiatives. Focusing on the core goal of “cultivating post requirements. A blended learning model is adopted supported by a closed-loop managementTraining high-quality talent with strong identification with corporate culture and job competence” the system encompassing "needs assessment—course development—implementation execution—effect

tracking". Training effectiveness is ensured through the cultivation of internal instructors and collaboration Company implemented phased training including robust onboarding training for the 2025

with external resources continuously enhancing employees' professional competencies and business cohort of university graduates. This helped graduates quickly integrate into the corporate

support capabilities. culture improve comprehensive professional skills and smoothly transition into the workplace.The Company hosted a high-standard graduate onboarding

During the reporting period the Company launched the “Cornerstone Plan” Supervisor Training Camp and ceremony invit ing for the f irst t ime graduate parent

the “Spark Plan” Team Leader Training Camp for group technology/management supervisors and production representatives and faculty representatives to attend. The

team leaders. Combining “online universal training + offline targeted training” these programs enhanced the ceremony fostered a strong sense of corporate identity and

comprehensive leadership capabilities of frontline management cadres. Supervisor Training Camp: Focused

on two main themes “Management Fundamentals” and “AI Tool Applications” addressing management belonging among the new graduates through its meaningful

Leadership pain points with courses on management thinking AI efficiency enhancement and team motivation. Through and ceremonial format. The Company coordinates university

Training activities such as morning sharing sessions face-to-face meetings with middle cadres final presentations graduate production internships and regularly organizes visits

and external visits the program captured management experience helping supervisors broaden their and research to accurately understand internship needs

management perspectives and enhance practical management capabilities. Team Leader Training Camp: and effectively enhance internship outcomes. Concurrently

Closely aligned with the team leader competency model focusing on three directions: “Professionalism” Graduate Onboarding

“Production Management” and “Team Management”. Courses covered new generation management quick the Company implements training and certification for Boot Camp

changeover in production lean production etc. fully integrating case studies best practice sharing external graduate mentors helping them clearly define their roles and

visits and other training formats. The program focused on key pain points and practical difficulties in team responsibilities thus building a strong mentorship foundation

management effectively enhancing the practical management capabilities of team leaders. for graduate development.

49About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Employee Development

GREE Electric Appliances' Diversified Talent Development System

Supported by a dual-track "management +

professional" talent development system the The Company has always regarded talent as our most valuable asset and is committed to building a scientific and comprehensive talent echelon

Company provides employees with a full career- system providing diversified growth and development pathways for employees of different types and levels.cycle growth ladder—from new hires to senior

executives and seasoned experts—ensuring deep

integration between individual growth and corporate

strategy. Within the professional grade evaluation

track the Company establishes certification For technical and management personnel For frontline employees the Company has Employees with outstanding performance

criteria centered on performance outcomes the Company has innovatively developed established a robust skill grade evaluation are given priority for promotion

supplemented by professional skills forming a a three-channel career development mechanism encouraging them to refine opportunities and supported in participating

full-process evaluation system encompassing path—"professional managerial and their skills and enhance their professional in internal job competitions helping

"init iation–application–review–assessment– comprehensive development"—offering proficiency. outstanding talent stand out and promoting

public announcement". Simultaneously through employees multi-dimensional growth the deep integration between personal

standardized procedures internal workers' options. career development and the Company's

congresses are convened to deliberate and vote on strategic objectives.grade evaluation plans thereby ensuring fairness Talent Development Pathways产产产产产 产

transparency and standardization in the evaluation

process. Vertical development

Executive Administration Expert designer

function

Middle-level Senior designer

cadre

Production Marketing

New employee

operation and sales

lateral Advanced

Division head Management development Professional designer

direction direction

Process Technology

Team leader quality R&D Designer

Specialist Design officer

Vertical development

50About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

D产产产产 evelopment Support University-Industry Cooperation

The Company places high importance on the personal growth and development of our employees. We The Company continues to deepen our "resource sharing mutual

have clearly stipulated that all employees who obtain associate bachelor's or master's degrees or integration" university-industry cooperation mechanism enriching

acquire position-required special operation certificates and special equipment safety management and collaborative innovation models in industry-academia-research.operator certificates may apply for reimbursement of relevant expenses upon verification of eligibility. We have established long-term in-depth partnerships with

Concurrently for skilled technical personnel the Company provides learning resources and guidance multiple key universities nationwide strengthening talent supply-

for various trades (e.g. welders) and grants vocational skill level certifications in accordance with the demand alignment and technological innovation synergy. In 2025

Skill Grade Evaluation Management Measures. the Company hosted a "Graduate Onboarding Ceremony and

University Faculty Open Day" enhancing interaction and joint

For high-level technical talent the Company offers comprehensive compensation safeguards and talent cultivation with academic institutions. We co-developed

development support. For example the Company provides post-doctoral researchers with a "dual specialized course programs with universities integrating

mentorship" mechanism in which senior executives and technical experts offer career and technical industry practical projects into academic curricula to deepen

guidance respectively. The Company also provides fully furnished talent apartments with home industry-education integration and precisely cultivate high-quality

appliances shuttle bus services and uncapped scientific research funding. The Company supports versatile talent adapted to industrial needs. The Company also

post-doctoral researchers in undertaking national and provincial-level R&D projects and assists them organized a Graduate Innovation Practice Camp attracting nearly

in applying for relevant talent programs. Additionally through initiatives such as birthday greetings and 100 outstanding students to engage in practical exploration

holiday condolences the Company fosters a secure and comfortable working and living environment and stimulate innovative thinking. Through diversified campus

for doctoral researchers. recruitment and university-industry collaboration initiatives the

Company proactively builds a pipeline of exceptional talent

During the reporting period with innovation potential continuously fueling our high-quality

development.the Company provided tuition reimbursement support for academic

advancement and skill upgrading to over

1100 employees

We also completed vocational skill level certifications for

14063 employees

Closing Ceremony of the Specialized Course "Strive Together in Youth Shine for the Future"

Program by Gree Electric Appliances & 2025 University-Industry Symposium

Huazhong University of Science and Technology

51Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Occupational Health and Safety

The Company always prioritizes employee health and life safety.By improving organizational structure refining regulatory systems During the reporting period

strengthening protective measures and regularly conducting

safety training and emergency drills we comprehensively

fortify occupational health defenses and strictly adhere to work

safety baselines. This creates a safe healthy and reliable the Company conducted totaling

working environment for employees supporting the Company's

sustainable development. 261 occupational 38100

Occupational Health health-related training hours

sessions

The Company str ic t ly fo l lows

occupat ional heal th laws and

regulations formulating systems

such as the Occupational Disease

Prevention Management Measures

and Occupational Safety and Health the employee health the employee work- the number of

Education Management Measures check-up rate was related injury insurance occupational disease coverage rate was cases was

to establish a standardized and

institutionalized occupational health

management system. Through 100% 100% 0

measures l i ke s t rengthen ing

institutional safeguards optimizing

management processes and

implementing system certifications ISO 45001 Occupational

t h e C o m p a n y b u i l d s r o b u s t Health and Safety

occupational health protection Management System The Company places high importance on occupational disease prevention and employee physical and mental health management Certification

barriers at the institutional level establishing a comprehensive occupational health protection system. For employees in positions with occupational hazards the Company

comprehens ive l y p reven t i ng provides labor protective equipment such as safety shoes earplugs and protective masks. The Company organizes annual occupational

occupational risks and safeguarding health examinations and special testing for occupational hazard positions preventing occupational risks and injuries at the source. The

employees' physical health and Company is also equipped with emergency equipment such as AEDs and medical kits to fully protect employee health.legal rights.

52About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Work SafetyAdhering to the occupational health and safety policy of “People- Safety InspectionsOriented Work Safety Health Protection Care for Life” the

Company has established a Work Safety Committee chaired by The Company attaches great importance to fire safety management establishing a dedicated fire safety management organization

the Chairman. The Safety Committee Office serves as its standing implementing a 24-hour duty system for full-time firefighters and building a normalized fire safety prevention and control system. During

body fully responsible for the Company's occupational health and the reporting period the Company organized fire inspection personnel to conduct routine fire inspections 12 times per month and special

safety management. During the reporting period the Company investigations 12 times per month focusing on key areas such as liquefied gas pipeline safety electrical safety hazardous materials

continuously improved its safety management system updating management and fire protection equipment operation. A total of 248 potential hazards were identified and relevant departments were

and revising core policies such as the Company Work Safety supervised to complete corrective actions within the specified timeframe achieving a 100% rectification completion rate. This effectively

Responsibility System Management Measures and the Work- eliminated fire safety vulnerabilities. The Company compiles inspection findings at the end of each month and issues a special fire safety

related Injury Management Measures. With a well-established report urging all units to strengthen hazard prevention and management thereby effectively safeguarding employees' life and property safety

organizational structure clear responsibility mechanisms and as well as production and operational security.comprehensive institutional safeguards the Company effectively

protects employee life and health and ensures corporate safety. Hazard Reporting Mechanism

To effectively promote the transformation of the Company’s safety

management model towards prevention continuously deepen Employees can report hazards to responsible personnel via email or the fire duty hotline. Responsible personnel

the dual prevention mechanism of safety risk tiered control and are required to verify hazards on-site and follow up on the handling process throughout. Each month the

hazard identification and control the Company established an Company compiles statistics on rewards and disciplinary actions in accordance with relevant management

internal hazard reporting reward system. A total of RMB 423200 measures and issues a corresponding notice. Prior to month-end the results are submitted to the Corporate

in rewards was distributed fully mobilizing employee initiative in Management Department for implementation of rewards or disciplinary actions concerning relevant units or

safety management and continuously improving the efficiency of individuals

safety management and hazard control.Hazard Reporting Record Verification Hazard Handling Assessment/Reward

During the reporting period

The Company emphasizes both guidance and supervision encouraging all factories and departments to conduct

routine self-inspections and self-corrections of safety hazards. A total of 24 relevant factories and departments

423200 are required to strictly implement the fire safety duty system effectively reducing safety risks and earnestly RMB

safeguarding corporate assets and employee personal safety.was distributed for internal hazard reporting

53About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

产S产产产 afety Drills 产S产产产 afety Training

The Company continuously organizes

various types of emergency drills to The Company places great emphasis on work safety training having

build a practical action-oriented safety established a multi-level full-coverage safety training system. It

prevention and control defense line. Fire regularly conducts special training for key responsible persons and

emergency evacuation drills are carried safety management personnel to strengthen their decision-making

out following the full-process procedure capabilities for work safety. It organizes skill enhancement training

of "meeting deployment – plan update for key positions to improve the practical safety skills of critical

– safety training – drill organization – personnel. It also holds work safety knowledge contests to stimulate

effectiveness evaluation". From November proactive learning of safety knowledge among all employees creating

to December 2025 15 organizing units a strong safety culture atmosphere. These efforts comprehensively

in collaboration with the volunteer fire 2025 Fire Emergency Evacuation Drill enhance employee safety awareness and practical skills effectively

brigade conducted 42 bui lding-by- safeguarding personal safety and the security of the Company's

building fire emergency evacuation drills production operations.in batches across the headquarters

campus involving 28000 participants. In

addition 9 gatehouse emergency drills

were held simulating real-life scenarios

such as abnormal personnel gathering

and blocking roads as well as attempts

to storm the gate. These drills enhanced

preparedness and response capabilities

through realistic practice safeguarding 2025 Gate Guard Emergency Drill

campus production order and employee The Company Holds a Firefighting Practical Skills Competition

personal safety.During the reporting period

the Company conducted with a total of

381safety drills 34000 participant attendances

“Ge'an Cup” Safety Skills Enhancement Training for

Knowledge Contest Key Responsible Persons and

Safety Management Personnel

54Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Strengthening Control

over Chain Partners Strategy

Adhering to a supply chain management philosophy of compliance control and The Company identifies risks and opportunities related to the supply chain evaluates their impact cycles and implements targeted

collaborative win-win the Company has established a full-process systematic measures accordingly.supply chain governance system. By improving the full lifecycle management

of suppliers promoting diversified sourcing and localization substitution Impact

strengthening compliance control over human rights environmental protection Risk Type Specific Description Period Response Measures

and conflict minerals and simultaneously building efficient communication

mechanisms and empowerment training systems the Company continuously Procurement of core components is tilted Implement a "diversification to eliminate sole-source" strategy qualifying multiple suppliers for core components to ensure

optimizes our supply chain structure and enhances risk resistance capabilities. towards certain suppliers posing a single- Medium

source dependency risk; high reliance on Term Long rapid switching capability; advance localization initiatives

While ensuring supply chain security and stability it works jointly with partners imported key components may be affected by Term by establishing a localization list for core components in air Supplier

to build a responsible and sustainable industrial ecosystem thereby providing Dependence external supply fluctuations. conditioning; standardize the design of core components to increase commonality and standardization rates.supply chain guarantee for the Company's high-quality development.Governance Price fluctuations of raw materials such Optimize supply channels and the supply chain system to

as copper and aluminum directly impact Short Term Medium reasonably control procurement costs; promote waste recycling The Company’s supplier management is coordinated under the leadership of the Cost procurement costs putting pressure on the Term and reuse to reduce raw material consumption through

responsible company leader with departments such as the Material Procurement Fluctuation supply chain's profitability. resource circulation.Center and the Outsourced and Purchased Parts Management Department

carrying out related work. The Company has formulated and implemented the The supply chain covers a wide scope and Establish a full lifecycle supplier management system; verify

Supplier Management Measures defining supplier management requirements for suppliers' compliance levels in areas such as compliance certificates such as ISO45001 and ISO14001 for

the headquarters and all subsidiaries. Furthermore the Company continuously human rights environmental protection and 100% of suppliers during the access phase; conduct quarterly

Compliance conflict minerals vary potentially exposing the

Long Term surprise inspections regularly and update special qualifications

deepens supply chain partnerships optimizes supply channels and supplier Control Company to regulatory penalties and brand like HSF/C-TPAT annually; formulate a Conflict Minerals Policy

structures to meet production and operational reputation risks. and conduct due diligence using CMRT/EMRT templates.needs strengthens organizational development and供应链安全管理体系认证证书

ideological guidance to build a high-quality integrity- 证书编号：ZRC25SCSMS0093R0L兹 证 明珠海格力电器股份有限公司

based supplier management team and improves 统一社会信用代码：91440400192548256N注册地址：珠海横琴新区汇通三路 108 号办公 608审核地址：中国广东省珠海市香洲区金鸡路 789 号

建立的供应链安全管理体系符合：

internal control mechanisms for supplier management ISO 28000：2022《供应链安全管理体系的规范》标准的要求 Opportunity Impact

证书覆盖范围： Specific Description Response Measures

空调、制冷制（热）设备的研发、制造和销售及其场所涉及的 Type Period

to enhance risk prevention capabilities. Through 供应链安全管理活动

发证日期：2025年11月26日有效期至：2028年11月25日

standardized and efficient supply chain management Under the global ESG development trend a

the Company ensures the security and stability of its green low-carbon compliant and transparent Conduct regular environmental training for suppliers covering

supply chain has become a core competitiveness environmental regulations and carbon emission control

supply chain supporting the sustainable development for enterprises. Policies support sustainable Long Term to enhance partners' green capabilities; mandatorily verify

of the Company. The Company has obtained ISO Sustainable supply chain construction and market demand for supplier compliance in environmental protection human rights

28000 Supply Chain Security Management System Supply Chain Security Supply Chain environmentally compliant products continues to and other aspects selecting high-quality sustainable suppliers.Management System grow creating space for supply chain upgrades.

certification. Certification Certificate

55About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Impact Risk and Opportunity Management

The Company upholds the baseline of compliance and its sense of responsibility 产产产产Safety Assurance

strengthening the management and control of human rights environmental protection

and conflict minerals in supplier management. Through strict audit access dynamic The Company focuses on enhancing supply chain security and resilience adopting multiple measures to build a diversified

supervision and rectification and standardized conflict mineral traceability the and stable supply chain system. In terms of core component assurance it advances localization initiatives by developing

Company ensures supplier compliance protects labor rights preserves the ecological localization lists for core components in air conditioning steadily promoting the localized supply of key components to

environment and promotes sustainable supply chain development. reduce dependence on external sources. Simultaneously the Company implements a "diversification to eliminate sole-

source" strategy addressing the challenge of single-supplier dependency. For core components we mandate reserving at

产产产产产Access and Evaluation least 2 or more qualified suppliers to ensure rapid switching capability. Through standardized design of core components

the Company continuously improves product commonality and standardization levels enabling seamless substitution of

The Company integrates compliance and risk prevention and control throughout the products from different suppliers and further enhancing the supply chain's resilience. Measures such as data encryption

entire supplier access process. Access evaluation and due diligence focus on core and access control are implemented to mitigate risks of cyberattacks and information leakage safeguarding supply chain

dimensions such as quality systems technical capabilities C-TPAT anti-terrorism data security and business confidentiality.security GREE environmental protection standards HSF compliance and production

licenses comprehensively verifying supplier qualifications. In terms of process new Furthermore the Company maintains a dynamically updated supplier resource database categorizing and managing

suppliers are required to complete preparation preliminary review sample inspection suppliers by industrial clusters. Regular quarterly assessments of existing suppliers' supply capabilities are conducted

category assessment and integrity document signing in sequence. Assessments are and based on evaluation results the supplier pool is dynamically optimized to ensure a stable and high-quality roster

conducted by the Outsourcing & External Procurement Management Department of available suppliers. Through systematic and refined supply chain management practices the Company effectively

and submitted for approval. Regarding frequency access evaluation is conducted safeguards the continuity of our production operations and supply chain security.once while special due diligence items such as HSF compliance C-TPAT anti-

terrorism security and production licenses are updated annually. Suppliers approved

under special terms are subject to dynamic tracking. The Company organizes

suppliers to participate in special training and strengthens compliance management

through regular performance monitoring issue rectification and dynamic elimination

mechanisms building responsible and sustainable supply chain partnerships.产产A产产产 ssessment and Exit

The Company implements a quarterly supplier quality evaluation mechanism

reducing the supply proportion for suppliers ranked at the bottom. Suppliers that fail to

rectify issues effectively or exhibit persistent quality non-conformance are suspended

from supply qualifications. Suppliers that have not supplied goods for over one year

are also subject to qualification suspension achieving dynamic survival of the fittest.Through quantitative assessment tiered control and data monitoring the Company

realizes dynamic management ensuring continuous optimization of the supply chain.

56About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

S产产产产产产 ustainable Supply Chain

The Company places high importance on supplier ESG performance and has formulated the Supplier Code of Conduct which sets forth specific management requirements for suppliers in areas such as business

ethics health and safety employee rights protection and environmental protection. Comprehensive environmental and social impact assessments are conducted for all suppliers. A supplier's labor management

performance along with factors such as product or service price and quality influences its evaluation and assessment. In addition the Company requires all new suppliers to commit to adhering to the Business Social

Compliance Initiative (BSCI) Code of Conduct ensuring compliance with international standards in social responsibility labor rights and environmental protection thereby promoting the sustainable development of the

supply chain. Under equal conditions the Company will give priority to suppliers that meet the labor management requirements below and ensure the full protection of employee rights and interests.产产产S产 ocial and Environmental Aspects of the Supplier Code of ESG Conduct

E产产产产产产产产产产产 nvironmental and social responsibility system certification Compliance with labor laws and regulations

Certification in ISO14001 and ISO45001 reflects the supplier's This includes but is not limited to prohibiting all forms of forced labor

commitment to responsible business practices. Furthermore and ensuring respect for employees' fundamental human rights. Child

holding certifications such as SA8000 (Social Accountability) labor shall not be used and all workers must be at least 16 years of

BSCI (Business Social Compliance Initiative) and C-TPAT (Supply age. Additionally there shall be no discrimination in hiring promotion

Chain Security) demonstrates the supplier's proactive efforts in or other employment practices based on age gender race religion

fulfilling social responsibilities. sexual orientation physical condition or any other factor.Safe and healthy working environment

Employee welfare and rights protection

Providing a safe and healthy workplace is a fundamental requirement.This includes but is not limited to providing necessary personal Social insurance shall be purchased for employees and the

protective equipment implementing special protective measures income level of each employee shall not be lower than the local

for hazardous positions conducting regular health examinations to statutory minimum wage standard. Relevant wage structure and

monitor employee well-being establishing effective accident prevention payment records shall be available as proof.and management systems performing regular inspections of special

equipment with records maintained ensuring fire safety and complete

fire-fighting facilities and conducting fire evacuation drills.W产产产产产产产 产 产 产 产 orking hours and rest leave system Freedom of association

Suppliers shall comply with national regulations concerning working hours and The rights of employees to freely associate and engage in

reasonably arrange employee rest and leave. Overtime compensation shall be collective bargaining shall be respected.provided in accordance with local labor laws to ensure appropriate remuneration.

57About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

产产产产Social and Environmental Aspects of the Supplier Code of ESG Conduct

Requirements for Environmental Protection Control of Hazardous and Toxic Substances

Evidence of compliance with environmental regulations: Presence of toxic or hazardous substances in products:

Suppliers shall provide documentation or reports demonstrating Suppliers must provide relevant test reports proving their

compliance with national and regional environmental products are free from toxic and hazardous substances

regulations including aspects such as wastewater discharge regulated by laws such as the EU RoHS Directive (Restriction

exhaust gas emissions and waste treatment. of Hazardous Substances).Plans and objectives for reducing environmental impact: Hazardous substance testing equipment: Suppliers shall

Suppliers shall provide specific improvement plans and possess the necessary hazardous substance testing

objectives such as reducing carbon footprint improving equipment or send samples to third-party authoritative testing

energy efficiency and minimizing waste generation. agencies for analysis and provide corresponding test reports.Warehousing Material Requisition Green Supplier Management

and Production Line Management Green supplier certification process and list: Suppliers shall

Labeling and isolation of toxic and non-toxic substances: have a clear green supplier certification procedure and

Suppliers shall ensure toxic and non-toxic substances in maintain a list of green suppliers.warehousing material requisition and production lines are clearly Hazardous substance control agreement: Sign hazardous

labeled and stored separately to prevent cross-contamination. substance control agreements with green suppliers or require

Identification of pollution risks in production processes: Suppliers relevant commitments from them and ensure that valid third-

shall identify potential environmental pollution risks during party accredited testing institution reports on hazardous

production and implement corresponding control measures. substance content are kept on file for these suppliers.产产I产产 ntegrity Management

The Company upholds the bottom line of business ethics by maintaining an open channel for supplier self-recommendation

providing equal access opportunities for high-quality partners. Concurrently we sign the Integrity Agreement Statement on

Integrity and Self-Discipline and Letter of Commitment with suppliers and relevant internal personnel clearly defining the

boundaries for ethical cooperation. During the supplier admission stage the Company conducts anti-commercial bribery S产产产产产产 产 upplier Feedback Channels

and anti-corruption investigations on suppliers to ensure they meet compliance requirements. Throughout the cooperation

period the Company regularly conducts anti-commercial bribery and anti-corruption audits of suppliers continuously verifying Complaint Hotline: (0756) 8669807

compliance in the business relationship between the supplier and the Company. Furthermore through regular anti-corruption

and anti-bribery awareness campaigns and training the Company strengthens integrity awareness among all employees dual Complaint Email: jiancha@cn.gree.com or caigoujicha@cn.gree.com

reinforcing the supply chain's integrity defense line from both mechanistic and ideological perspectives maintaining a clean

and honest business environment and long-term stability.

58About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

产产产S产产 upplier Communication 产产产产产Supplier Audit

The Company has established a multi-dimensional and efficient supplier communication and collaboration system to ensure smooth The Company implements rigorous regular audits and

information flow and seamless cooperation within the supply chain. elimination mechanisms. Annually we organize reviews and

S产产产产产产产 upplier Communication Methods human rights risk audits for high-risk Tier 1 suppliers and

some Tier 2 and Tier 3 suppliers to ensure their continued

compliance with labor management standards and the

Supplier Code of ESG Conduct. Through these audits the

Regular ly convene special d iscussion Proactively disseminate key information Implement a dynamic delivery and logistics Company promptly identifies and addresses existing issues

meetings on delivery quality and cost to suppliers including graphics and text tracking mechanism to monitor supplier with suppliers ensuring the stability and sustainability of the

focusing on core topics such as material information quality standards and order shipment progress and promptly coordinate supply chain. For suppliers that fail to meet requirements the

requirements planning inventory preparation details. A supplier portal has been established to resolve potential issues in the logistics

raw material prices and incoming shipment to enable real-time information sharing process. Company can implement corresponding corrective measures

schedules. In-depth engagement wi th ensuring information symmetry between both and if necessary initiate the elimination mechanism to

suppliers is conducted through email on-site cooperating parties; guarantee the overall quality of the supply chain.meetings and telephone communication;

Supplier Training

The Company has established an annual routine environmental training

mechanism for suppliers focusing on core topics such as environmental During the reporting period

regulations waste management carbon emission control and sustainable

supply chain development. Systematic training is provided to key suppliers the Company conducted training

to effectively enhance their environmental compliance awareness and through a combination of online and

practical capabilities laying a solid foundation for building a green supply offline formats covering a total of

chain and safeguarding the sustainable development of the industrial

ecosystem. 129 suppliers

For key process areas such as injection molding and sheet metal spraying

the Company organizes specialized on-site training sessions inviting

supplier management personnel to conduct field learning and exchanges

at relevant branch factories of the Company. Through immersive with

experiences and practical guidance the Company precisely strengthens

suppliers' on-site management capabilities and environmental control

levels in processes promoting green collaboration across all supply chain 172 participants

segments and ensuring environmental compliance throughout the product

lifecycle as well as high-quality supply chain development.

59About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

C产产产产产产 onflict Minerals Management

The Company absolutely tolerates no form of participation in or incitement of human rights violations Indices and Goals

or environmental degradation resulting from armed conflict. To this end the Company strictly adheres

to and requires all suppliers to comply with domestic and international conventions regulations and 产产产产Management Indices

industry initiatives concerning responsible minerals. We have formally formulated and released the

Conflict Minerals Policy of Gree Electric Appliances Inc. of Zhuhai committing that none of GREE

Electric Appliances' products contain conflict minerals that directly or indirectly finance armed groups

in conflict-affected and high-risk areas. Simultaneously we explicitly require suppliers not to procure 2025 Data

or use conflict minerals (including but not limited to tin tantalum tungsten gold cobalt natural mica

and their derivatives) and this policy has been comprehensively communicated to suppliers at all Supplier localization ratio 13.1% Number of suppliers passing environmental

audits 94

levels mandating strict compliance.Total number of suppliers 1118 Number of suppliers passing social audits 94

The Company conducts annual conflict minerals due diligence on suppliers of products containing

relevant minerals utilizing the Conflict Minerals Reporting Template (CMRT/EMRT) of the Responsible Number of new suppliers 148 Total supplier training hours 598.5

Minerals Initiative (RMI). Suppliers are also required to conduct conflict minerals due diligence on their

upstream suppliers. By regularly disclosing the results of this due diligence the Company continuously

improves the transparency of its responsible mineral sourcing investigation findings.During the reporting period Management Goals

the Company surveyed a total of

Complete conflict mineral due diligence for 100%

841 suppliers of suppliers by the end of 2030.

traced back to of which

409 52% Equal Treatment for Small and smelters have obtained RMAP Medium-Sized Enterprises

and refiners certification

The Company consistently upholds the philosophy of “fair competition joint development”

Raw material origin traceability has been completed for actively fulfills its social responsibilities and treats small and medium-sized enterprises (SMEs)

equally. By opening supply chain resources providing technical support and sharing market

59% channels the Company helps SMEs enhance their competitiveness and promotes the synergistic of products with no issues identified related to conflict minerals. development of upstream and downstream industry chains. As of the end of the reporting period

the Company had no overdue payments to SMEs.

60About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Fulfilling Our Mission to Support Society

The Company consistently upholds its corporate citizenship responsibilities. While deeply engaged in industry and striving for excellence the

Company actively participates in social welfare initiatives. We focus on areas such as social assistance rural revitalization and community GREE Electric Appliances Donates Funds to Support

welfare programs fulfilling its long-term commitment to society through concrete actions. Hong Kong Fire Relief Efforts

On November 26 2025 a severe fire broke out in Wang Fuk

Engagement in Social Assistance Court Tai Po Hong Kong causing significant casualties and

property damage with the disaster affecting the entire nation.The Company deeply embeds the philanthropic spirit of "when one place is in trouble assistance comes from all quarters" into its corporate GREE Electric Appliances paid close attention to the situation

actions. We believe that corporate social responsibility is particularly tangible in the face of major disasters and emergencies. Therefore the and announced on November 28 that it would urgently

Company has established a rapid response mechanism committed to mobilizing core resources such as products technology and capital donate HKD 12 million to Hong Kong specifically allocated

at the earliest opportunity to provide practical and urgently needed assistance to affected communities serving as a reliable pillar of support for emergency rescue operations medical treatment for the

for society. injured resettlement of affected residents and post-disaster

reconstruction efforts. Ms. Dong Mingzhu Chairperson of

the Company expressed her support stating "Stay strong

产产产产产产产G产产产产产产产产产产产产产 REE Electric Appliances Donates 1000 Heating Units to Support Xizang Earthquake Relief Efforts Hong Kong! Together let us stand united and overcome the

difficulties" conveying the Company's firm determination to

The earthquake disaster in Dingri County Shigatse City stand in solidarity with the people of Hong Kong during this

Xizang touched the hearts of many. Upholding the principle challenging time.of "when one place is in trouble assistance comes from all

quarters" GREE Electric Appliances promptly responded to

the Initiative to Actively Donate Energy-Efficient and Safe

Heating Equipment to the Earthquake-Stricken Area in Dingri

County Shigatse City Xizang Autonomous Region issued by

the Department of Housing and Urban-Rural Development of

the Xizang Autonomous Region. The Company organized and

dispatched a substantial quantity of heating equipment and

other emergency relief supplies to fully support local disaster

relief efforts helping affected residents stay warm and safe Donation of Heating Equipment to the

through the winter. At noon on January 9 2025 delivery Earthquake-Stricken Area in Dingri County

vehicles loaded with 1000 units of safe convenient and Shigatse City Xizang

energy-efficient heating equipment officially departed from the

Chengdu base rushing to the disaster-stricken area. GREE Electric Appliances Donates Funds to Hong Kong

61Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Community Welfare Initiatives Supporting Rural Revitalization

Corporate social responsibility is also reflected in sincere daily The Company regards serving the national rural revitalization strategy as an important responsibility and mission of the era. Upholding the

care for the community and long-term community building. We principle of "pragmatic and steadfast implementation" we not only provide financial donations to support regional collaboration and overall

encourage employees to engage deeply at the community level development but also place greater emphasis on leveraging its industrial and technological advantages to effectively address specific

through an organized and ongoing volunteer service system challenges in rural areas related to infrastructure livelihood security and other areas. By empowering villages in a sustainable manner the

carrying out diverse and meaningful public welfare initiatives across Company helps paint a new picture of thriving industries livable ecosystems and prosperous lives.multiple dimensions such as cultural promotion environmental

protection and community services. Through these everyday

efforts we put into practice the people-centered approach and the GREE Electric Appliances Donates RMB 1 Million to Support Rural Revitalization

commitment to creating a better future that underlies the vision of

"Made in China Loved by the World." On June 30 2025 an event to support rural revitalization was

held in the Guangdong-Macao In-Depth Cooperation Zone in

During the reporting period Hengqin. At the event GREE Electric Appliances donated RMB

1 million. This donation will be specifically allocated to support

industrial development and infrastructure construction within

the GREE Electric Appliances Young the Cooperation Zone as well as in areas benefiting from the

Volunteers Association organized a total of Zone's east-west collaboration and paired assistance programs

16 within the province. This initiative injects new momentum volunteer activities spanning areas

such as culture and arts ecological into consolidating the hard-won achievements in poverty

environmental protection and community alleviation and actively responds to the national strategic call for

services comprehensively advancing rural revitalization. The "6.30" Rural Revitalization Support Event in 2025

GREE Electric Appliances Donates Plateau Water Purification Equipment to Address Drinking Water Challenges

In May 2025 GREE provided water purification equipment for Jianshetang Primary School in Galeng Tibetan Township Xunhua

Salar Autonomous County Haidong City Qinghai Province completely resolving the challenge that had prevented teachers

and students from accessing clean hot water for 63 years. Thanks to GREE's products and advanced technology teachers and

students at this school located at the edge of the Qinghai-Xizang Plateau at an altitude of over 3000 meters now have access to

pure high-quality hot water.

62Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Environmental Compliance Emergency Management

Management In accordance with national regulations such as the Emergency Management Measures for Emergent Environmental Incidents and considering the Company's environmental risk characteristics the

In its production and operations the Company implements national environmental protection Company has formulated the Emergency Response Plan for Sudden Environmental Incidents and filed

laws and regulations and emission standards including the Environmental Protection Law of the it with the local ecological and environmental authorities as required. Concurrently it has developed

People's Republic of China and the Law of the People's Republic of China on Environmental Impact emergency drill plans for environmental risk incidents regularly organizing joint government-enterprise

Assessment. It fully implements the environmental protection responsibility system has formulated and internal drills for various types of sudden environmental incidents. This ensures timely orderly

environmental management policies such as the Measures for the Administration of Environmental efficient and appropriate response and handling in the event of a sudden environmental incident

Protection Responsibility System clearly defining the main environmental management responsibilities minimizing the impact on the environment and protecting personnel and property safety.and tasks at all levels. It has established an environmental protection management organization

responsible for coordinating organizing and supervising environmental protection work. Aligning with

Multi-Theme Emergency Drills for Sudden Environmental Incidents

national environmental protection policy requirements the Company translates national environmental

compliance requirements into continuous internal management actions fulfilling its corporate In accordance with the Emergency Response Plan for Sudden Environmental Incidents the

environmental responsibility continuously improving its environmental management level and ensuring Company regularly carries out emergency drills and training on themes including "fire and

environmental compliance. In 2025 the Company had no environmental pollution incidents. explosion" "excessive waste gas emission" "excessive waste water discharge" "chemical

Environmental Management System leakage" "hazardous waste leakage" and "radiation leakage". Through simulating real scenarios and organizing multi-departmental joint response the feasibility and operability

of the plan were effectively verified and the emergency awareness and practical response

The Company continuously improves its environmental

capabilities of personnel at all levels were improved. After each drill timely evaluation and

management system and earnestly implements environmental

summary are conducted deficiencies found during the drill are rectified and optimized and

management practices. As of the end of the reporting period

emergency response procedures and resource allocation are improved accordingly.the Company had obtained ISO 14001 environmental

management system certification. To master the actual

operation of the Company's environmental management

system and identify and improve deficiencies in system

operation the Company conducts annual internal audits of the

environmental management system and annual supervisory

audits by external third-party certification bodies. The audits

cover EHS process control compliance of documents and

records pollutant treatment performance and environmental

protection training. Non-conformities identified in the audits

are rectified timely to strictly ensure the compliance of

ISO 14001 Environmental

environmental management implementation and ensure the Management System Conducting Emergency Drills

effective operation of the environmental management system. Certification of the Company

64About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Environmental Protection Training

C产产产产产产 产 产 产 ompliance Training for Environmental Protection Principals

During the reporting period the Company organized various types of environmental special training for

environmental protection managers supervisors and employees at all units. Training content included Following the annual environmental training plan the Company organized special training

requirements of environmental policies and regulations analysis of typical environmental cases key for environmental managers and supervisors. The training was delivered by internal

points of the Company's environmental compliance management environmental risk identification environmental business instructors focusing on environmental management responsibilities

and hazard control pollution treatment process technology operation and maintenance standards for typical cases on environmental management management issues environmental

pollution prevention facilities and emergency response procedures for sudden environmental incidents. management technologies and environmental compliance practices. To improve teaching

Through these training sessions the environmental responsibility awareness of personnel at all units effectiveness sessions included exchange segments where trainees could discuss instructed

was effectively enhanced while the professional competence and performance capabilities of the content and challenging topics encountered in daily management with instructors and

environmental management team were improved. peers sharing experiences and good practices in environmental protection and learning

from each other. This special training further deepened the understanding of environmental

management among unit managers and supervisors laying a foundation for further improving

the Company's environmental management level.Site of Environmental Protection Training

65About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Green Factory Addressing Climate Change

The Company actively engages in green initiatives including environmental protection energy

conservation low-carbon development and emission reduction and stands at the forefront of green Faced with the global challenge of climate change Gree Electric Appliances has integrated

development. Proceeding from its environmental protection practices the Company adheres to low-carbon transformation into its core strategy and established a full-process climate risk

the principle of balancing environmental protection and production and continuously optimizes management system. Through greenhouse gas emission verification risk and opportunity

clean production selects green raw materials improves product energy efficiency adopts green identification implementation of green technological upgrades and energy optimization the

packaging upgrades production processes and establishes a green supply chain management Company continuously enhances its climate adaptability and sustainable development capacity

system. The Company’s subsidiaries and branches actively pursue green factory certification. As of strengthens corporate resilience and fulfills its ecological responsibilities with concrete actions.the end of the reporting period the Company had a total of 22 green factories (including 10 national-

level green factories 7 provincial-level green factories and 5 municipal-level green factories) Governance

demonstrating Gree Electric Appliances' leading position in green manufacturing and its commitment

to sustainable development. The Company has formulated and implemented the Energy and Resource Conservation

Management Measures defining management requirements for greenhouse gas-related work.List of GREE Electric Appliances' National-Level Green Factories

It has established a greenhouse gas inventory team to conduct greenhouse gas inventory

and verification work. During the reporting period the Company completed the verification of

Name Award Level Date of Award its 2025 greenhouse gas emission data and obtained the verification certificate. Through this

Gree Electric Appliances Inc. of Zhuhai National 2024 inventory and verification the Company accurately identifies climate change-related risks

formulates emission reduction targets and corresponding measures actively responds to the

Gree Electric Appliances (Wuhan) Co. Ltd. National 2024 national “dual carbon” strategy and promotes its sustainable development.Gree Electric Appliances (Luoyang) Co. Ltd. National 2023

Gree Electric Appliances (Chongqing) Co. Ltd. National 2022

Gree Electric Appliances (Shijiazhuang) Co. Ltd. National 2022

Zhuhai Kaibang Motor Manufacture Co. Ltd. National 2021

Zhuhai Linda Compressor Co. Ltd. National 2020

Shijiazhuang Green Renewable Resources Co. Ltd. National 2019

Gree Electric Appliances (Zhengzhou) Co. Ltd. National 2019

Gree (Changsha) HVAC Equipment Co. Ltd. National 2018

66About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

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Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Strategy

The Company follows the Task Force on Climate-related Financial Disclosures (TCFD) initiative and conducts climate risk management analysis with reference to its disclosure framework. It identifies climate-related

risks and opportunities assesses their impacts on operations and formulates targeted response strategies. Meanwhile the environmental management units are advancing preparatory work including organizational

system establishment scenario analysis methodology research and climate-related training in a bid to strengthen climate change risk management.Risk Type Specific Description Impact Period Response Measures

High temperature: High temperatures increase the risk of fire accidents which can lead to personnel Install cooling facilities as needed; equip comprehensive fire safety facilities; conduct

casualties and damage to production facilities and equipment resulting in increased capital fire safety emergency drills and provide relevant training to enhance employees' safety

expenditures. awareness and capabilities.Acute Risks Typhoons heavy rain and flooding: Extreme weather events can cause interruptions in logistics Short Term Plan multiple transportation methods and based on weather alerts arrange logistics and

and transportation affecting production and on-time delivery leading to increased operational Medium Term transportation in advance to ensure material inventory reserves; continuously improve the

Physical Risks costs; the destructive power of extreme weather events can damage production equipment and emergency response mechanism for natural disasters reserve emergency supplies and

cause operational disruptions resulting in higher equipment repair costs; employee safety and strengthen safety inspections; regularly conduct emergency drills and training for extreme

occupational health may be threatened and workplace accidents could reduce production efficiency. weather events to enhance employees' safety awareness and capabilities.Chronic Rising sea levels: Operations in coastal areas may need to relocate inland and fixed assets may be Medium Term Continuously monitor the trend of rising sea levels; consider the impact of rising sea

Risks damaged or prematurely decommissioned leading to increased production costs. Long Term levels when selecting operational locations; develop multiple regional suppliers for the same product category to ensure a stable supply of raw materials.Due to the national deployment requirements for carbon peaking and carbon neutrality a series of

Policy energy-saving and carbon reduction action plans policies and standards have been introduced Medium Term Monitor the dynamic changes in carbon policies and regulations in operational locations

Risks leading to increased compliance costs for carbon emissions; the trend of carbon taxes on Long Term to respond appropriately to policy and legal updates.international trade imports and exports is becoming more apparent which may result in higher costs.Technology The early phase-out of high energy consuming equipment leads to increased operational costs; the Short Term Develop photovoltaic projects to increase the share of renewable energy; use low-energy

Risks R&D and application of clean energy or innovative low-carbon technologies result in increased R&D Medium Term consumption production equipment optimize production processes and explore and Transformation expenses. implement energy-saving and emission-reduction projects to reduce energy consumption.Risks

Market As consumer awareness of environmental protection increases there is a greater preference for selecting green low-carbon and environmentally friendly products which may lead to higher costs Short Term Strengthen carbon reduction across the entire production operations and logistics Risks for raw materials and the production process. Medium Term processes.Reputation As a leading manufacturing enterprise stakeholders expect the Company to assume on more

Risks emission reduction responsibilities. If the Company fails to initiate low-carbon transformation

Short Term

Medium Term Use clean electricity.planning in advance it may suffer reputation damage.Opportunity Type Specific Description Impact Period Response Measures

Technolog Global "carbon peaking and carbon neutrality" goals drive expanding demand for energy-saving and low-carbon

Export technologies with significant growth in market-oriented and international application space for relevant green Long Term

Continuously upgrade core technologies expand overseas markets and

technologies. promote localized technology adaptation and global project implementation.Scenario Accelerated low-carbon transformation in multiple industries drives growing demand for cross-scenario application Medium Term Develop scenario-based solutions deepen cross-border cooperation and

Expansion of green technologies further unlocking market potential. Long Term expand the boundaries of application ecology.

67Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Impact Risk and Opportunity Indices and Goals

Management

Under the unified risk and opportunity management framework the Company Greenhouse Gas Emissions of GREE in 2023-20253

integrates the identification of climate change-related risks and opportunities

into daily operation and management. Climate change risks and opportunities

are mainly identified through policy dynamics tracking industry trend research Total Greenhouse Gas Emissions Direct (Scope 1) Greenhouse Gas Emissions

and judgment special evaluation and analysis scenario simulation and

deduction and are continuously tracked in links such as production and

operation supply chain management and market expansion. Unit: tCO2e Unit: tCO2e

202313144382023726654

In terms of risk response and opportunity seizing the Company promotes risk

prevention and control as well as opportunity transformation by improving the 2024 3173251 2024 2682418

climate change management system strengthening the R&D and application 2025 2200430 2025 1759657

of low-carbon technologies advancing the optimization and upgrading of

energy structure and implementing special green transformation actions thus

forming a closed-loop management mechanism to effectively enhance climate

adaptability and sustainable development capacity. Meanwhile the continuous Indirect (Scope 2) Greenhouse Gas Emissions Greenhouse Gas Emission Intensity

improvement of climate risk management capacity helps strengthen the

enterprise's risk resilience and market competitiveness providing support for

Unit: tCO e Unit: tCO e/RMB 10000 Revenue

the long-term steady development of the Company's business. 2 2

202358778420230.0641

202449083320240.1670

202544077320250.1291

3The data calculation scope for 2024-2025 includes the Company’s headquarters and all its subsidiaries and branches. The data calculation

scope for 2023 is the Company's headquarters. The reduction in 2025 greenhouse gas emissions is primarily due to a substantial decrease in

the Company’s usage of R410a refrigerant.

68Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Waste and Emission Treatment

The Company strictly abides by laws and regulations related to waste and sewage discharge and has established a full-process control system covering waste gas wastewater solid waste and noise. Through improving

the organizational structure perfecting rules and standards upgrading treatment facilities and strengthening monitoring and assessment the Company realizes compliant disposal and up-to-standard discharge of

pollutants and wastes earnestly fulfilling its ecological and environmental protection responsibilities.Pollutant Discharge

The Company strictly complies with laws and regulations including the Law on the Prevention and Control of Atmospheric Pollution of the People's Waste Treatment

Republic of China the Law on the Prevention and Control of Water Pollution of the People's Republic of China the Law on the Prevention and Control

The Company strictly abides by the Law on the Prevention

of Noise Pollution of the People's Republic of China and the Law on the Prevention and Control of Soil Contamination of the People's Republic of

and Control of Environmental Pollution by Solid Wastes

China. It has established a hierarchical management and control structure from top to bottom. The Company's management acts as the primary

of the People's Republic of China and other relevant laws

principal for environmental protection to oversee overall work; the environmental protection management department performs supervision duties;

and regulations and has formulated the Measures for the

and branches undertake primary responsibilities for facility operation and maintenance. Meanwhile the Company has formulated the Measures for

Classification and Recycling of Waste Materials which clearly

the Administration of Environmental Protection Responsibility System which clarifies the management responsibilities and work requirements of all

defines the management responsibilities and work requirements

departments forming an environmental governance mechanism with clearly defined roles and responsibilities and collaborative efficiency.of all units in the classification collection storage and disposal

In accordance with laws regulations and the requirements of the pollutant discharge license GREE Electric Appliances has established a sound of various wastes providing institutional support for the

pollutant management system formulated special management and monitoring plans and invested in supporting environmental treatment facilities. standardized management of solid waste. During the reporting

It also entrusts qualified third-party institutions to regularly monitor pollutants such as waste gas wastewater and noise. Satisfactorily all monitoring period the Company obtained the waste treatment system

results meet national and local emission standards. The Company's pollutant discharge has not imposed negative impacts on employees local certification.community residents and other groups. During the reporting period all pollutants were discharged up to standard and the Company had no

environmental pollution incidents. Waste Treatment Methods产产产产产产产

产产产产产产产Pollutant Treatment Methods General Waste

The Company implements pollution control measures at various stages including source collection process control and end treatment. Mainly generated in workshops it is sorted and packed by

Measures conducted include building tailored waste gas treatment facilities for different types of waste gas including injection molding type transferred to a special general industrial solid waste

Waste waste gas heat exchanger drying waste gas and spraying waste gas. The main treatment technologies feature regenerative thermal

warehouse for temporary storage through internal logistics

oxidation activated carbon adsorption-desorption coupled with catalytic combustion etc. During the reporting period all treatment and finally handed over to qualified recycling manufacturers

Gas facilities operated effectively and waste gas discharge met national and local emission standards with no excess discharge. for comprehensive resource utilization.The Company has installed wastewater treatment facilities to treat industrial wastewater with full-time management operation and monitoring Hazardous Waste

personnel assigned. During the reporting period all wastewater treatment facilities operated normally with no excess discharge.Wastewater Mainly generated in workshops it is sorted and packed by type transferred to a special hazardous waste warehouse

for temporary storage through internal logistics and finally

The Company prioritizes low-noise equipment during equipment selection and plans process layouts to minimize noise impact. It disposed of in compliance by professional units with

improves high-noise equipment by adding soundproofing covers silencers and other measures. It also conducts regular noise corresponding qualifications.Noise monitoring and provides protective equipment for operating personnel to ensure noise emission compliance.

69Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Resource and Energy Utilization

The Company deeply integrates the efficient management of resources and energy into its strategy and operations and has established a professional governance structure closed-loop management system

and digital support system. Relying on a professional talent team standardized reporting mechanism and technological innovation practices the Company systematically promotes energy conservation and water

resource optimization comprehensively improves resource utilization efficiency and lays a foundation for the implementation of management measures.To further advance the green and low-carbon transformation and continuously improve resource and energy utilization efficiency the Company has established a systematic professional and multi-level governance

structure for water and energy utilization. Meanwhile it deeply integrates energy conservation emission reduction and water conservation into the entire process of corporate strategic planning and daily operations.The governance structure fully covers all production bases and functional departments. By clarifying management responsibilities standardizing control procedures and strengthening process traceability a closed-

loop management mechanism has been formed to ensure the efficient implementation and standardized progress of energy management injecting sustained impetus into the green and high-quality development of

the enterprise.产产产产产产G产产产产产产 overnance Structure for Usage of Energy and Water Resources

The Company has established a resource energy management mechanism where overall management and supervision are handled by the executive management professional execution is carried out by the

Headquarters Equipment & Power Department and implementation is undertaken at various levels by branch factories and production bases. This mechanism promotes orderly work through data monitoring process

control and regular evaluation.Professional Execution Level Grassroots Execution Level

Scope Scope

Implement energy-saving tasks issued by the headquarters and conduct daily

Coordinate overall Group energy management resource allocation cross-

management including equipment maintenance operation optimization and data

departmental collaboration and performance appraisal; conduct energy audits

reporting.energy efficiency evaluation energy-saving technology promotion etc.Energy Energy Tasks and objectives:Tasks and objectives:

management management Implement the mechanism of "post-specific energy-saving accountability" and

responsibilities产产产产 Identify high energy-consuming links and propose optimization plans; responsibilities产产产产 integrate energy consumption indexes into team performance appraisal;

Formulate the annual energy utilization management action plan;

Promote the phase-out of outdated equipment and intelligent renovation;

Establish an energy data monitoring platform to realize digital and visual

Submit monthly energy usage data and realize real-time warning of abnormal

management of energy use across the Group.energy consumption.Scope ScopeImplement water-saving targets and tasks issued by the headquarters; carry out

Water Establish water resource management ledgers for the entire Group; promote the Water

resources resources equipment renovation and water utilization optimization measures; organize team-

management implementation of water-saving technical renovation projects; carry out water- management based water-saving training and routine inspections; report monthly water usage

responsibilities saving technology promotion and energy efficiency evaluation. responsibilities data and abnormalities.

70About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Water Resources Utilization

The Company strictly abides by the Water Law of the People's Republic of China and other

national and local water-related laws and regulations. It has formulated special policies During the reporting period

targets and implementation plans for water resources management. In addition it actively

implements various water-saving measures introduces and applies advanced water-

saving technologies and processes optimizes the water consumption structure through Through the implementation

water recycling and other means and continuously reduces water consumption intensity based on the data of 2024 the Company has set a target of saving of water-saving projects the

and freshwater intake. actual water saving achieved

During the reporting period the Company promoted the renovation of water pipelines at

the Chongqing Base. By addressing problems such as aging and corrosion of buried pipe 3% of water for 2025 3.19%

networks pipeline leakage was effectively resolved. After the renovation approximately

30000 tons of tap water can be saved annually further strengthening the conservation and

efficient use of water resources.Water Resources Utilization

Total Water Intake Intensity (10000 Tons Water Resources

(10000 Tons) /RMB 1 Million Revenue) Recycling Rate(%)

10200.004098.59

Total Water

Consumption Recycled Water Volume

(10000 Tons) (10000 Tons)

689.571274

71Green Intelligent Manufacturing:

About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Energy Utilization

The Company complies with laws and regulations including the Energy Conservation Law of the People's

Republic of China the Measures for the Energy Conservation Management of Key Energy-Using Units the

GIEMS Intelligent Energy Management System

Guangdong Energy Conservation Regulations and has formulated a series of documents including the Gree

Electric Appliances’ Energy and Resource Conservation Management Measures the NYGLSC-02 Energy GREE Electric Appliances promotes the information construction of energy management and

Management Manual the QG1800.01-01 Energy Review Management Measures and the Gree Electric has built the GIEMS Intelligent Energy Management System as the group-level hub for energy

Appliances' Air Conditioning Sector Energy Management Guide. From standardized system operation management. The system integrates multi-dimensional information such as energy data and

technical renovation project control equipment access review to performance incentive and restraint the equipment status and fulfills two core functions: first it conducts real-time dynamic monitoring of

Company has established a closely linked closed-loop energy management system. As of the end of the energy consumption data of key equipment across all production bases of the Group; second

reporting period the Company maintained its valid ISO 50001 Energy Management System certification. it covers the monitoring of consumption data of energy types including water electricity and

Reporting Mechanism gas at all bases. Its capabilities include real-time data visualization problem analysis and rapid

The Company implements a classified management and reporting mechanism for energy realizing dynamic decision-making providing digital support for the efficient management and control of energy.tracking and transparent control over energy management through multi-dimensional reporting. The energy

performance special report is prepared on a monthly basis in the form of visual charts covering energy

consumption per unit output value across the Group the completion rate of energy-saving targets the

progress of major energy-saving projects analysis of return on investment and benchmarking against industry

peers thereby facilitating a comprehensive grasp of the overall energy performance. The monthly publicity of

energy management performance mainly presents the monthly energy consumption and evaluation results of

each production base so as to strengthen energy efficiency benchmarking and accountability implementation

among different bases.Digital System

The Company empowers energy management with digitalization builds solid technical

barriers through forward-looking information-based planning realizes data integration

and intelligent decision-making and provides strong digital momentum for green and

low-carbon development with the advantages of efficient and transparent management.In addition the Company has established a hierarchical and coordinated energy

monitoring process to achieve full-chain dynamic management and control. Real-time

energy data including electricity water gas and others are automatically collected and

monitored online in real time with an update cycle of no more than one minute; abnormal

energy consumption warnings are also identified online in real time by the system to

detect risks in a timely manner; monthly energy performance reports and progress of

key energy-saving projects are generated monthly through a combination of system

and manual collaboration ensuring that the monitoring is not only efficient through GIEMS Energy Management System of GREE Electric Appliances

automation but also accurate with manual verification.

72Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

产E产产产 nergy-Saving Practices

The Company continuously taps into energy-saving potential focuses The company focuses on advancing green technological upgrades across multiple business segments. It has implemented a number of

on technological iteration and system upgrading and promotes energy process improvement projects in areas such as controllers injection molding and final assembly. Through technological innovation the

efficiency optimization across all production links. Ultimately it has company has achieved energy savings in electricity liquefied gas and other energy sources actively putting into practice its commitment to

built an efficient and low-carbon green manufacturing model. energy conservation and consumption reduction.产产产产产E产产产 nergy Efficiency Upgrade of Air Conditioning Room Development and Application of Intelligent Testing Technology for Chillers

In the construction project of the high-efficiency centralized Traditional chiller testing relies on manual testing under multiple operating

air conditioning room in Phase II of the Zhuhai Headquarters conditions requiring over 7 hours per unit presenting three major pain

Park the Company adopted high-efficiency GREE CVE series points: long testing time high energy consumption and risk of missedpermanent magnet synchronous variable frequency centrifugal detection. In 2025 the Company independently developed “Intelligentunits and LHVE series permanent magnet synchronous variable Testing Technology for Chillers” achieving industry innovation through three

frequency screw chillers to replace the original low-efficiency air- major breakthroughs: 1. First online intelligent fault detection system for

cooled screw compressor units and air-cooled modular units. The chillers: Based on a data-driven integrated intelligent software system it

refrigeration room is located on the 4th floor of Phase II serving integrates code writing parameter writing/verification and online intelligent

as the core cooling source for process cooling and environmental detection to achieve automatic quality and performance inspection for

cooling of the project. Equipped with a full variable frequency all components of the unit completely eliminating missed detection. 2.system an intelligent group control system frequency converters Revolutionary optimization of the testing process: The testing cycle per

and variable frequency control cabinets the room effectively unit was drastically reduced from 7 hours to 1 hour representing a 600%

solved the problems of the original air conditioning system such improvement in testing efficiency. 3. Dual enhancement of green and low-

as excess cooling distribution high unit energy consumption and carbon benefits: Average energy saving of 1758 kWh per unit. During the Application of Intelligent Testing

low comprehensive Energy Efficiency Ratio (EERs). The project Technology for Chillersreporting period this technology saved 210960 kWh of electricity andachieved an annual power saving of about 1.5 million kWh reduced carbon emissions by 113 tonnes becoming a benchmark “quality-reducing carbon emissions by about 795 tons. energy-efficiency” tri-aspect green testing technology in the commercial air

conditioning sector.During the reporting period

The Company has set targets for The Company carried out saving about The Company invested RMB

improving energy efficiency. In 2025

the energy consumption per RMB

10000 output value decreased by 305 energy-saving 64.25 million 465 million in

10.7% technical renovation kWh of electricity energy-saving technical projects renovations

73About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

产产产产产U产 sage of Clean Energy

During the reporting period the Company

Used nuclear power of accounting for achieving an emission reduction of

670 million kWh 41.95% of the Company's 363163 tCO2e

total electricity consumption

Had a total photovoltaic accounting for achieving an emission reduction of

(PV) power generation of

115 7.12% of the Company’s million kWh total electricity consumption 61681 tCO2e

During the reporting period the Company increased its clean energy proportion

New PV power bringing the Group's total with PV power generation growing by

generation projects installed PV capacity to

12 MW 126.3 MW 18% compared to 2024 GREE Linyi PV Project

Energy storage capacity bringing cumulative with a year-on-year

installed installed capacity to increase of

110 310 90 million kWh of MWh MWh peak shaving in 2025 25%

Reduction of LPG usage by a year-on-year decrease of

1000 tonnes through substitution with natural gas 14%

GREE Wuhu PV Project

74About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Pursuing Low-Carbon Emission

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Exploration of Circular Economy

As a globally leading industrial manufacturing group the Company

actively promotes waste recycling and reuse reduces resource

waste and explores circular economy development pathways. M产产产产产产 产 产 产 产 产 easures for Electronic Waste Recycling Management

Relying on its strong after-sales service system the Company has

set up electronic waste collection points at stores nationwide and

established renewable resources bases in Zhuhai Changsha and

other cities to undertake the collection and recycling of surrounding Scope of

Recycled Waste household appliances of all brands are eligible for recycling.electronic waste and the resource utilization of plastics and other Products

materials. Meanwhile the Company has improved the waste

home appliance recycling system enhanced the convenience

of the trade-in program and provided an integrated service of

"delivery installation and recycling". It vigorously promotes green Consumer Consumers can make one-click appointments via web pages and submit relevant information to obtain

environmental protection and energy-saving and emission- Costs and recycling quotes followed by free on-site services provided by staff; the Company offers consumers

Incentives for

reduction technological transformation projects facilitates resource Recycling deduction credits for product trade-ins.recycling and supports high-quality industrial development and the

achievement of the "carbon peaking and carbon neutrality" goals

making contributions to the sustainable development of the industry.The Company employed diversified recycling methods including setting up collection points mail-in

Recycling recycling on-site collection trade-in recycling "Internet Plus" recycling and establishing regional central

Channels

产产产产Company stations thereby realizing full-channel recycling of electronic waste.Commitment

The Company complies with existing international

environmental and waste transport conventions

Recycling and

agreements loca l laws and o ther regu la tory Recycling is carried out through its own facilities and third-party recycling suppliers. All collected electronic Treatment

requirements. We actively respond to theBasel Facilities waste is transported to renewable resource dismantling factories for environmentally sound dismantling.Convention on the Control of Transboundary Movements

of Hazardous Wastes and Their Disposal explicitly

prohibiting the direct or indirect export of electronic

waste through intermediaries from OECD countries or Management

of Third-Party The Company conducts annual reviews and verifications of third-party recycling suppliers to ensure

the EU to non-OECD or non-EU countries for disposal Recycling compliance with the Company's internal management requirements with a supplier review rate of 100%.and recycling. Suppliers

75About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

E产产产产产 产 产 产 产 lectronic Waste Recycling Programs Winning the Title of "2025 EPR Responsibility

Fulfillment Innovation Pioneer Enterprise"

GREE Electric Appliances actively implements the Extended

Expanded The Company launches trade-in activities and has built a sound recycling network and a reverse logistics Producer Responsibility (EPR) system and has established

Recycling system featuring "integrated delivery of new products and collection of old ones" which realizes full industrial a closed-loop system covering "R&D – Production – Sales –

through Trade- chain coverage of Gree's home appliance business from front-end production to back-end waste home

in Channels appliance recycling. Recycling – Regeneration" for which it was awarded the title

of "2025 EPR Responsibility Fulfillment Innovation Pioneer

Enterprise". The Company has built a traceable reverse logistics

Reverse

Logistics recycling network covering the whole country and joined hands

Recycling The Company collaborates with 30000 sales outlets and 20000 after-sales service points targeting end with platforms such as JD.com and Tmall to create a diversified

Model for Waste consumers to carry out the recycling of all categories of used household appliances.Household recycling ecosystem. In 2025 the volume of waste household

Appliances appliances recycled was 8.55 million units/sets covering air

conditioners televisions refrigerators washing machines

computers and other products. The large-scale practices heavily

Online The Company has launched "Mingzhu Green Loop Recycling" a professional recycling platform for waste promoted green and circular consumption."Internet Plus household appliances. By linking with Gree's offline after-sales outlets it has formed a recycling and treatment

Recycling" network covering 95% of provinces cities and towns nationwide attracting more than 200000 registered users

Channel The recycled waste household appliances after sorting are and securing over 500000 total orders.regenerated through a green treatment system with an annual

dismantling capacity of over 10 million units. The Company has

established a reverse logistics system for "integrated delivery of

Urban Waste

Recycling The Company has joined forces with environmental sanitation enterprises to establish a "2+1" efficient recycling new products and collection of old ones" and provides one-stop

through and utilization model for urban household waste that is to build a "closed-loop system for resource recycling" by services of "delivery installation and recycling" for household

Integrated Two relying on one "Internet Big Data Intelligent Cloud Platform" and one "Ecological Resource Utilization Center".Networks appliances. Through the Mingzhu Green Loop information platform

and the "one code per unit" traceability system the Company

has realized digital management of the whole recycling process

improved efficiency reduced costs and ensured transparency and

Recycled and Converted Copper Iron Aluminum and traceability of the process.Recycled and Processed Waste Electrical and Electronic Products Plastic Materials

Unit: 10000 Units/Sets Unit: 10000 Tons

2023995202315.34

2024813202415.76

2025855202518.32

2025 EPR Responsibility Fulfillment

Innovation Pioneer Enterprise

76Compliant Governance: Refining R&D and Improving Collaborative Empowerment: Green Intelligent Manufacturing: About This Message from the About Gree ESG Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared Pursuing Low-Carbon Emission Report Management Electric Appliances Management AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Key Performance Table

Economic Performance Social Performance

Indicator Unit 2025 产I产产产 nnovation-driven

Total operating revenue RMB 100 Million 1711.18 Indicator Unit 2025

Net profit attributable to the parent company RMB 100 Million 290.03 R&D Investment RMB 100 Million 64.44

Total cash dividends (tax included) RMB 100 Million 167.55 Proportion of R&D investment to operating revenue % 3.78

Cash dividend per 10 shares (tax included) RMB 30 Number of R&D personnel Person(s) 15947

Percentage of R&D personnel % 22.16

Governance Performance Cumulative patent applications Item(s) 138935

产B产产 oard of Directors Cumulative invention patent applications Item(s) 76928

Cumulative patents granted Item(s) 87079

Indicator Unit 2025

Cumulative invention patents granted Item(s) 32317

Total number of Board members Person(s) 10

Patent applications during the reporting period Item(s) 9411

Including: Number of female directors Person(s) 1

Invention patent applications during the

Including: Number of executive directors Person(s) 1 reporting period Item(s) 6084

Including: independent directors Person(s) 4 Patents granted during the reporting period Item(s) 9181

Number of board meetings convened Time(s) 6 Invention patents granted during the Item(s) 6434

Attendance rate of board members % 100 reporting period

Cumulative software copyrights held Item(s) 100

产B产产产 usiness Ethics

Safety and Quality of Products and Services

Indicator Unit 2025

Anti-commercial bribery and Indicator Unit 2025

anti-corruption training Time(s) 33 Number of products recalled Case(s) 0

Number of employees who have signed the

integrity commitment letter Person(s) 10364 Product recall rate % 0

77About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Employee Turnover Rate

Indicator Unit 2025 Indicator Unit 2025

Amount involved in significant safety and quality Total employee turnover rate % 11.27

responsibility accidents related to annual products RMB 10000 0

and services Employee Male % 11.66

turnover rate by

Complaint resolution rate % 100 gender Female % 10.33

Customer satisfaction % 99.97 Under 30 years old % 20.59

Employee

turnover rate by 30 to 40 years old % 7.92

age group

产产产E产 mployee Composition Over 40 years old % 4.44

Indicator Unit 2025

Total number of employees Person(s) 71966

Number of Male Person(s) 51122 E产产产产产 产 产 mployee Training and Development

employees by

gender Female Person(s) 20844 Indicator Unit 2025

Number of Labor contract system Person(s) 71966 Total training hours Hour(s) 1195002

employees

by type of Labor dispatch system Person(s) 0 Average training hours per employee Hour(s) 57.41

employment Others Person(s) 0

Under 30 years old Person(s) 22380

Number of

employees by 30 to 40 years old Person(s) 31564

age O产产产产产产 产 ccupational Health and Safety

Over 40 years old Person(s) 18022

Senior Management Person(s) 285 Indicator Unit 2025

Number of female senior Total duration of occupational health and work Person(s) 38 safety training Hour(s) 135667management employees

Number of

employees by Middle Management Person(s) 5155 Times of safety drills conducted (fire toxic gas Time(s) 381

position level leaks etc.)

Number of female middle

management employees Person(s) 1152 Number of work-related fatalities Person(s) 0

Frontline Person(s) 66526 Incidence of occupational diseases % 0

78About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Environmental Performance

Greenhouse Gas Emissions Waste Disposal

Indicator Unit 2023 2024 2025 Indicator Unit 2025

Total greenhouse gas emissions tCO2e 1314438 3173251 2200430 Total general solid waste Ton(s) 499126.63

Scope 1 Greenhouse gas emissions tCO2e 726654 2682418 1759657 Total hazardous waste Ton(s) 15897.59

Scope 2 Greenhouse gas emissions tCO2e 587784 490833 440773 Recycled and converted copper iron aluminum

and plastic materials 10000 Tons 18.32

Greenhouse gas emissions intensity tCO2e/RMB 10000 Revenue 0.0641 0.1670 0.1291 Recycled and processed waste electrical and

electronic products 10000 Units/Sets 855

Wastewater Discharge

Usage of Water Resources

Indicator Unit 2025

Indicator Unit 2025

Total industrial wastewater discharge m3 3089689.17

Total water withdrawal 10000 Tons 1020

Chemical oxygen demand (COD) mg/L 68.32

Recycled water volume 10000 Tons 71274

Five-day biochemical oxygen demand (BOD5) mg/L 23.87

Total water consumption 10000 Tons 689.5

Suspended solids mg/L 19.44

Ammonia nitrogen mg/L 7.78 Usage of Energy

Total phosphorus mg/L 1.16 Indicator Unit 2025

Total energy consumption Ton(s) of standard coal 247401.18

Waste Gas Emissions Direct energy consumption Ton(s) of standard coal 49144.36

Indicator Unit 2025 Including: Natural gas 10000m3 2895.65

Total exhaust emissions m3 34232869350 Including: Liquefied petroleum gas (LPG) Ton(s) 6203.16

Particulate matter (PM) emissions mg/m3 8.67 Indirect energy consumption Ton(s) of standard coal 198256.82

Non-methane hydrocarbon emissions mg/m3 3.26 Including: Electricity 10000 kWh 149820.56

Nitrogen oxides (NOx) emissions mg/m3 11.21 Including: Self-generated solar power usage 10000 kWh 11495

Sulfur oxides (SOx) emissions mg/m3 1.41 Nuclear power usage 10000 kWh 67678.6

Volatile organic compounds (VOCs) emissions mg/m3 3.40 Proportion of clean energy consumption % 54.8

79About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological

Appendix

Responsibilities

Benchmark Index Table

Cross-Reference to Self-Regulatory Guidelines No. 17 for Companies Listed on

Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)

Disclosure Requirements Corresponding Section Disclosure Requirements Corresponding Section

Climate Change Tackling Climate Change Tackling Pursuing Excellence Through

Meticulous Quality

Pollutant Discharge Pollutant and Waste Discharge

Safety and Quality of Products

and Services Craftsmanship-oriented Management Service Enhancing

Waste Disposal Pollutant and Waste Discharge

Reputation

Management

Environmental Data Security and Customer Rigorous Data Protection for

Topics Environmental Compliance Management Environmental Compliance

Social Topics Privacy Protection Enhanced Security

Management Employee Employment and

Energy Usage Resource and Energy Usage Rights and Benefits

Talent Development

Usage of Water Resources Resource and Energy Usage Employees and Training

Occupational Health

Circular Economy Circular Economy Exploration and Safety

Rural Revitalization Fulfilling Our Mission to Due Diligence ESG ManagementSupport Society

Sustainability- Communication with Stakeholders ESG Management

Contributions to the Society Fulfilling Our Mission to related Support Society Governance Anti-Commercial Bribery and Anti-

Topics Corruption

Business Ethics

Social Topics Innovation-driven Strengthening Innovation through Intensive R&D Anti-unfair Competition Business Ethics

Supply Chain Security Strengthening Control over Chain Partners

Equal Treatment to Small and Medium- Strengthening Control over

Sized Enterprises Chain Partners

Note: It has been determined that the topics of Ecosystem and Biodiversity Protection and Ethics of Science and

Technology are currently not material or applicable and are therefore not disclosed in this report.

80About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission Appendix

Safeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Reduction Fulfilling Ecological Responsibilities

Cross-Reference to GRI Standards

GRI Standard Corresponding Section GRI Standard Corresponding Section

About this Report GRI 308: Supplier Environmental

About Gree Electric Appliances Assessment 2016 Strengthening Control over Chain Partners

GRI 2: General Disclosures 2021 ESG ManagementCorporate Governance GRI 401: Employment 2016 Employee Employment and Rights and Benefits

Employee Employment and Rights and Benefits Key Performance Table

Key Performance Table

GRI 403: Occupational Health and Safety 2018 Occupational Health and Safety

GRI 3: Material Topics 2021 ESG Management Key Performance Table

Employee Employment and Rights and Benefits GRI 404: Training and Education 2016 Talent Training and Development

GRI 201: Economic Performance 2016 Climate Change Tackling Key Performance Table

Key Performance Table

GRI 405: Diversity and Equal Opportunity 2016 Corporate Governance

GRI 205: Anti-corruption 2016 Business Ethics Employee Employment and Rights and Benefits

Resource and Energy Usage GRI 406: Non-discrimination 2016 Employee Employment and Rights and BenefitsGRI 302: Energy 2016 Key Performance Table GRI 407: Freedom of Association and Collective

Bargaining 2016 Employee Employment and Rights and Benefits

GRI 303: Water and Effluents 2018 Pollutant and Waste Discharge Management Resource and Energy Usage GRI 408: Child Labor 2016 Employee Employment and Rights and Benefits

Climate Change Tackling GRI 409: Forced or Compulsory Labor 2016 Employee Employment and Rights and Benefits

GRI 305: Emissions 2016 Resource and Energy Usage

Key Performance Table GRI 414: Supplier Social Assessment 2016 Strengthening Control over Chain Partners

Pollutant and Waste Discharge Management GRI 417: Marketing and Labeling 2016 Business Ethics

GRI 306: Waste 2020 Circular Economy Exploration

Key Performance Table GRI 418: Customer Privacy 2016 Rigorous Data Protection for Enhanced Security

81About This Message from the About Gree ESG Compliant Governance: Refining R&D and Improving Collaborative Empowerment:

Green Intelligent Manufacturing:

Report Management Electric Appliances Management Improving Mechanisms to Quality: Innovation-Driven Efforts Partnering for a Shared

Pursuing Low-Carbon Emission

Reduction Fulfilling Ecological AppendixSafeguard Steady Operations to Build a Quality Benchmark Platform of Win-Win Success Responsibilities

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