CONTENTS
About This Report 01
Climate Response 29 Pollutant Discharge 48
Chairman's Statement 03
Energy Utilization 43 Waste Disposal 51
2024 Sustainable Development Impact 05
Ecosystem and Biodiversity Protection 45 Circular Economy 55
2024 Honors and Awards 07
Environmental Compliance Management 46
Management of Material Matters 09
Water Resources Utilization 47
Stakeholder Engagement 19
Sustainability-Related Governance 20 ENVIRONMENT
Rural Revitalization and Social 59
Contributions
Innovation-driven Development 65
Suppliers and Customers 70
Employees 88
SOCIETY
Appendix
Risk and Compliance Management 109
Data Overview 123
Business Practices 115
Guidelines No. 17 of Shenzhen Stock 135
Exchange for the Self-Regulation of
Listed Companies - Sustainability
Report (Trial)
SASB Index 136
GOVERNANCE
ESRS Index 137
ISDS Index 141Xindeco 2024 Sustainability Report About This Report
About This Report
This is the 2024 Sustainability Report ("this report") released by Xiamen Xindeco Ltd. (referred to as
"Xindeco" or "We"). This report aims to present stakeholders with an overview of ESG performance and
initiatives of Xindeco in 2024.Reference Guidelines Explanatory Note
This report is prepared in accordance with the Sustainability Disclosure Standards for Enterprise - General Requirements (Trial) jointly
Abbreviation Full Name
formulated by the Ministry of Finance of the People’s Republic of China the Ministry of Foreign Affairs the National Development
and Reform Commission the Ministry of Industry and Information Technology the Ministry of Ecology and Environment the Ministry Xindeco or We Xiamen Xindeco Co. Ltd.of Commerce the People's Bank of China the State-owned Assets Supervision and Administration Commission of the State Council
(SASAC) the National Financial Regulatory Administration and the China Securities Regulatory Commission. It also follows the Xindeco Xiamen Xindeco Co. Ltd. and its subsidiaries
Guidelines No. 17 of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and the
Xindeco Digital Intelligence Technology Digital Intelligence Technology Division of Xiamen Xindeco Co. Ltd.Guide No.3 of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issued
by the Shenzhen Stock Exchange the Sustainability Accounting Standards Board (SASB) Standards the European Sustainability Xindeco Electronic Information Technology Xiamen Xindeco Electronic Information Technology Co. Ltd.Reporting Standards (ESRS) released by the European Commission and the two IFRS Sustainability Disclosure Standards(ISDS) issued
by the International Sustainability Standards Board (ISSB). Additionally this report incorporates disclosure requirements aligned with Xiamen Xindeco IoT Xiamen Xindeco IoT Technology Co. Ltd.the United Nations Sustainable Development Goals (SDGs). Xindeco Optoelectronics Xiamen Xindeco Optoelectronics Co. Ltd.Xindeco Supply Chain Supply Chain Division of Xiamen Xindeco Co. Ltd.Reporting Scope
Xindeco Non-Ferrous Metals Non-Ferrous Metals Division of Xiamen Xindeco Co. Ltd.The reporting period is between January 1 2024 and December 31 2024 and some parts of the report are beyond the
Xindeco Ferrous Metals Ferrous Metals Division of Xiamen Xindeco Co. Ltd.aforementioned scope. Unless otherwise specified the environmental social and economic data disclosed in this report include all
enterprises within the scope of the consolidated statement of Xindeco. Xindeco ITG Automobile Group Xiamen Xindeco ITG Automobile Group Co. Ltd.Xindeco Intelligent IoT Xiamen Xindeco Intelligent IoT Technology Service Co. Ltd.Report Availability and Feedback
Shandong Xindeco IoT Shandong Xindeco IoT Applied Technology Co. Ltd.The report will be published once a year in electronic format in both Simplified Chinese and English. In the event of any Xindeco IoT Malaysia Xindeco IoT Malaysia Sdn. Bhd.inconsistencies between the Chinese and English versions the Chinese version shall prevail. The electronic version of the report can
be accessed and downloaded from the Shenzhen Stock Exchange website (www.szse.cn) and the cninfo website (www.cninfo.com.cn). If you have any comments or suggestions please feel free to email wangxs@xindeco.com.cn or lipf@xindeco.com.cn. We will
strive to make improvements the report based on your feedback.
01 02Xindeco 2024 Sustainability Report Chairman's Statement
Chairman's Statement
As time goes by we have witnessed the transformations responsibility a commitment to seeking breakthroughs amid sustainable future through responsibility and innovation. company's long-term steady development. In 2024 we kept
shaping our era with the global economy surging amidst change and continuously enhancing product value and core enhancing our corporate governance structure embedding
profound changes and waves of technological innovation competitiveness to earn the long-term trust and support of Collective Responsibility- Building a Value-Sharing sustainability goals deeply into our business operations and
continuously reshaping the future. In 2024 Xiamen Xindeco our customers. Looking ahead we will continue to uphold an Ecosystem advancing governance modernization.proudly celebrated forty years of growth and achievements. open innovative and responsible spirit moving forward with The company growth is intrinsically linked to society and Through more transparent efficient and standardized
Looking back to our founding in 1984 we have remained unwavering determination. Together with all our partners we it bears the responsibility to contribute in return. In 2024 management practices we ensured the company's long-
resolute in our original aspirations adapting to the evolving will forge a future of greater sustainability intelligence and we remained steadfast in fulfilling our corporate social term health and resilience. We strengthened the functioning
environment continuously redefining our technological core shared success. responsibilities leveraging our industrial strength to drive of the Board of Directors improved the strategic decision-
and forging our path through innovation and responsibility. sustainable societal progress and foster the integration of making process reinforced the internal control system and
This year we actively responded to the national call Low-Carbon Commitment- Pioneering Green Development economic and social value. We harnessed our industrial and optimized risk management procedures thereby enhancing
for the development of new quality productive forces Addressing climate change has become a global consensus resource advantages to support rural revitalization enhanced the compliance and risk resilience across operations. We also
aligning ourselves with the wave of digital and intelligent and green development is the inevitable path for enterprises the brand value and competitiveness of the agricultural focused on improving the quality of information disclosure
transformation. We officially established the Xindeco Digital toward the future. In 2024 we committed to sustainable industry chain and contributed to the long-term growth and strengthening engagement with investors employees
Intelligence Technology Division driving industrial upgrading development principles prioritizing low-carbon manufacturing of local economies. We actively mobilized resources for customers and other stakeholders ensuring that our
with technological empowerment and building an efficient energy efficiency and environmental improvements to educational initiatives cultivated talent for rural revitalization development remains aligned with long-term interests. We
intelligent and globally oriented digital platform a foundation accelerate the green and intelligent transformation of our and promoted the education across communities. We placed firmly believe that with excellent governance as the foundation
for a sustainable future. We made solid progress in our entire business value chain and support the achievement strong emphasis on community development conducted a company can maintain resilience amidst uncertainties and
internationalization strategy with our RFID production line of our carbon peaking and net-zero targets.We continuously philanthropic programs and advanced initiatives in healthcare achieve steady sustainable progress into the future.ventured overseas for the first time and Xiamen Xindeco IoT's optimized production processes to enhance resource culture and social welfare thereby promoting the sustained
inaugural overseas factory being established in Malaysia. efficiency implemented energy-saving technologies in enhancement of social well-being. Amidst the constant change only an unswerving commitment
Our supply chain business accelerated the transformation smart manufacturing and modern logistics to reduce energy We continued to refine our talent development framework to long-termism enables steady progress through the currents
and upgrading by deepening the integration of supply consumption and carbon emissions and advanced the green fostering a fair diverse and inclusive working environment to of the times. Looking to the future we will continue to uphold
manufacturing and sales chains further extending the service transformation of our supply chain by promoting sustainable drive the shared growth of our employees and the company. the principles of openness innovation and responsibility
boundaries. Our automobile dealership business continued to warehouse management and prioritizing the use of renewable Through concrete actions we are earnestly fulfilling our duties harnessing technology to empower industries leading the way
expand in new energy vehicles and export markets while also and recyclable materials. Through technological innovation and contributing to create lasting social value. with green solutions and broadening cooperation from a global
tapping into the potential of the used car and parallel import we are committed to decarbonizing our operations and perspective. Together with our partners we will collaboratively
sectors. We are deeply aware that sustainable development supply chains. We are dedicated to integrating low-carbon Governance Excellence- Securing Resilient Foundations create a greener smarter and more sustainable future defined
is not merely a strategic imperative but a corporate practices into every aspect of our business and building a more A sound governance framework is the cornerstone for a by shared success.
03 04Xindeco 2024 Sustainability Report 2024 Sustainable Development Impact
2024 Sustainable Development Impact
Economic Impact Environmental Impact
Total environmental protection input
1256.30thousand RMBTotal asset
12835316.08thousand RMB GHG emission intensity
58.97tCO2e / hundred-million RMB of operating revenue
Operating revenue
43785518.00thousand RMB Energy intensity
14.48
R&D investment Tons of coal equivalent / hundred- million RMB of operating revenue
45679.46 thousand RMB Water use intensity
1054.25m3 / hundred-million RMB of operating revenue
Social Impact
Total tax payment Employee compensation and benefits Total consumption-based assistance input
249582.10 thousand RMBthousand RMB 668318.56thousand RMB 786.99
Total occupational health and safety input Total employees
3245.92thousand RMB 3998persons
Volunteer service hours Total employee training hours
1135hours 63329hours
05 06Xindeco 2024 Sustainability Report 2024 Honors and Awards
2024 Honors and Awards
Xiamen Xindeco Ltd. Xiamen Xindeco IoT Technology Co. Ltd.The "2023 Top 20 Global Iron Ore 15th place in the Comprehensive List 9th place in the Construction Steel List "2023 Top 100 Chinese IoT Enterprises" jointly "Passive IoT Innovation Demonstration
Trading Suppliers" awarded by of the Top 100 National Steel Trading of the Top 100 National Steel Trading presented by the China Internet of Things Industry Enterprises" presented by the AIoT Technology and
Ganglian Holdings Enterprises recognized by Ganglian Enterprises recognized by Ganglian Alliance and the Shenzhen Internet of Things Industry Industry Association
Holdings Holdings Association
"2023-2024 China Excellent Trading "Long-term Reliable Supplier of Iron "Outstanding Contribution Award Xiamen Xindeco ITG Automobile Group Co. Ltd.Enterprise for Steel Export" Ore" recognized by Ganglian Holdings in Tin Industry for 2024" granted by
recognized by Ganglian Holdings Ganglian Holdings
46th place in the "2024 Top 100 59th place in the "2024 Top 100 Chinese "Top 100 Social Responsibility
Chinese Automobile Dealer Groups" Automobile Dealer Groups in New Enterprises in China Automobile
ranked by the China Auto Dealers Energy Vehicle Sub-List" ranked by Dealership Industry" recognized by
"2024 Excellent Enterprise for "2024 Top 30 Decent Enterprises for "2024 Outstanding Social Chamber of Commerce the China Auto Dealers Chamber of the China Auto Dealers Chamber of
ESG Practice" awarded at the 19th Shared Development" by the FESCO Enterprises - 2024 Human Resources Commerce Commerce
Employer Brand Promotion Conference the Economic Observer and the Positive Management Excellence Awards"
organized by CHIRC Psychology Research Center of School granted by HRoot
of Social Sciences Tsinghua University
"2024 Regional Outstanding "2024 Trustworthy Enterprise "Honest Automobile Dealer in Xiamen
Automotive Marketing Group" in China Automobile Dealership for 2024" recognized by Xiamen Daily
recognized by Yiche.com Industry" recognized by the China Auto
"2024 Best Employer" at the 19th "2024 Human Resources Management "The 6th YunTu Awards – Excellence Dealers Chamber of Commerce
Employer Brand Promotion Conference Innovation Enterprises" at the 19th Prize in Digital Empowerment and
organized by CHIRC Employer Brand Promotion Conference Innovation Practice" jointly presented
organized by CHIRC by the Institute of Organization and
Talent Development the CEIBS Business
Review and YXT "2024 Excellent Case of Marketing
Innovation Projects of Chinese
Automobile Dealers" recognized
Xiamen Xindeco Optoelectronics Co. Ltd.by the China Automobile Dealers
Association
85th place in the "2023 Top 100 Chinese
LED Lighting Companies" ranked by the
Grand Lighting Industry Research Institute
07 08Xindeco 2024 Sustainability Report Management of Material Matters
Management of Material Matters Sustainability Disclosure Standards for Enterprise - General Requirements (Trial) jointly formulated by the Ministry of Finance of
the People's Republic of China the Ministry of Foreign Affairs the National Development and Reform Commission the Ministry
of Industry and Information Technology the Ministry of Ecology and Environment the Ministry of Commerce the People's
Bank of China the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) the National
We conduct double materiality assessments in alignment with the latest domestic and international disclosure frameworks including 1 Financial Regulatory Administration and the China Securities Regulatory Commission the Guidelines No. 17 of Shenzhen
the Sustainability Disclosure Standards for Enterprise - General Requirements (Trial) jointly formulated by the Ministry of Finance Stock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and the Guide No.3 of Shenzhen Stock
Sustainability
of the People's Republic of China the Ministry of Foreign Affairs the National Development and Reform Commission the Ministry Exchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issued by the Shenzhen Stock Disclosure
of Industry and Information Technology the Ministry of Ecology and Environment the Ministry of Commerce the People's Bank Exchange the Sustainability Accounting Standards Board (SASB) Standards the Reference of ESG Indicators System for ESG Standards
Reports of Listed Chinese Central State-Owned Enterprises issued by the SASAC Research Center the European Sustainability
of China the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) the National Financial Reporting Standards (ESRS) released by the European Commission and the two IFRS Sustainability Disclosure Standards(ISDS)
Regulatory Administration and the China Securities Regulatory Commission. We also follow the Guidelines No. 17 of Shenzhen issued by the International Sustainability Standards Board (ISSB).Stock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and the Guide No.3 of Shenzhen Stock
Exchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issued by the Shenzhen Stock Exchange
the European Sustainability Reporting Standards (ESRS) released by the European Commission and the two IFRS Sustainability 2 The United Nations Sustainable Development Goals (SDGs) the 29th Conference of the Parties of the UNFCCC (COP 29) the Due
Disclosure Standards(ISDS) issued by the International Sustainability Standards Board (ISSB) to perform assessment and identify International Diligence Guidance for Responsible Business Conduct of Organisation for Economic Co-operation and Development (OECD) etc.material sustainability matters that have significant impacts on the company's long-term value and stakeholders. Initiatives
During the double materiality assessment process we evaluated sustainability matters from two dimensions: In conducting the double
materiality assessment we collected evaluation opinions from 318 stakeholders through questionnaires focusing on the impact of
The National carbon peaking and carbon neutrality goals global temperature control targets under the Paris Agreement Science
sustainability matters on our financial performance (financial materiality) and on environment and society (impact materiality). By 3 Based Targets initiative (SBTi) Responsible Business Alliance (RBA) Global enabling Sustainability Initiative (GeSI) trends in digital
analyzing both dimensions we identified 12 material matters which are addressed in the corresponding sections of this report. Economic and transformation and supply chain restructuring green manufacturing and circular economy automotive industry policies such as
Macro-Policy trade-in of old consumer goods and consumer subsidies
Dynamics
Double Materiality Assessment Approach 4 Shifting consumer preferences driving increased demand for sustainable products diversified and dynamic customer needs
greater value chain transparency and higher certification requirements for international business.Market Trends
Double Materiality Assessment Process
Understanding the Context and Identifying 5
The company identified 30 potential key 1
matters based on five factors and formed a Company Strategy Pursuit of sustainable growth development of new quality productive forces and advancement of high-quality development.Step
proposed sustainability matters list. and Development
Needs
Consolidating Impact and Financial
Materiality Outcomes
Impact and Financial Materiality Based on the data from Step 2 the
company developed the Materiality
The company evaluated the impact 2 3 Matters Matrix for 2024 and determined materiality and financial materiality of each the priority of sustainability matters for Sustainability Matters List
matter based on two dimensions: severity of Step Step the year.impact and likelihood of occurrence.Dimension Sustainability Matters
Analyzing the outcomes for sustainability ·Climate Response ·Environmental Compliance Management
4 reporting and practices Environmental ·Pollutant Discharge ·Energy Utilization ·Waste Disposal ·Water Resources UtilizationThe Strategy and Sustainability ·Ecosystem and Biodiversity Protection ·Circular Economy
Committee reviewed the analysis results
Step and the company took targeted actions ·Rural Revitalization ·Data Security and Customer Privacy
to improve the disclosure and practices ·Social Contributions ·Contributing to Industry Development
based on the results. ·Innovation-Driven Development
·Ethics of Science and Technology ·Equal Employment
Social ·Responsible Sourcing ·Human Rights Protection
·Supply Chain Security ·Employee Communication
Step 1 ：Identifying Sustainability Matters ·Employee Development and Training·Equal Treatment of SMEs
·Product and Service Safety and ·Employee Compensation and Benefits
Quality ·Occupational Health and Safety
We identified a list of sustainability matters relevant to our company based on five factors including sustainability disclosure standards ·Due Diligence ·Anti-Commercial Bribery and Anti-Corruption
international initiatives global economic and macro-policy dynamics market trends and our company strategy and development needs Governance ·Stakeholder Engagement·Risk and Compliance ·Anti-unfair Competition
while also taking into account our business characteristics. Management ·Tax Compliance
09 10Xindeco 2024 Sustainability Report Management of Material Matters
Step 2-1 ：Impact Materiality Assessment Step 2-2 ：Financial Materiality Assessment
We assessed the financial materiality of each matter based on two criteria: the potential magnitude and the likelihood of occurrence.Criteria 1: Severity of Impact
We assessed the "severity of impact " of
key sustainability matters across economic Criteria 1: Potential Magnitude Criteria 2: Likelihood of Occurrence
environmental and social dimensions through
stakeholder surveys with 318 valid questionnaires The direct and indirect positive and negative effects that The likelihood of financial effects on the company from
returned. We used statistical methods such as the opportunities and risks associated with each material the opportunities and risks associated with each material
weighted averages and variance analysis to quantify sustainability matter may bring to the company's financial sustainability matter in the short medium and long-term.the qualitative scores (1-5 scale) of each matter. The performance during the reporting period and in future
overall severity score was calculated by combining projections.the weight distribution to determine the materiality
of sustainability matters.Reference Factors
Considering factors such as market price of resources trend
Criteria 2: Likelihood of Occurrence Costs forecasts and the company's historical costs
We inferred the risk probability based on the Profits Taking into account both costs and revenues and assessing the
frequency of similar events in the past and classified Low Medium High impact on profits
and quantified the likelihood of risk occurrence
based on experience to determine the likelihood of Impact Materiality Assessment Outcomes
occurrence of sustainability matters.Financial Materiality Assessement Outcomes
Financial Materiality：Low1 Financial Materiality：Medium2 Financial Materiality：High3
2024 Impact Materiality Assessment Outcomes
Impact Materiality: Low Impact Materiality: Medium Impact Materiality: High *Anti-Commercial Bribery and
Anti-Corruption
*Circular Economy *Climate Response*Equal Employment *Water Resources Utilization
*Waste Disposal *Climate Response *Product and Service Safety and Quality*Employee Compensation and Benefits *Social Contributions
*Environmental Compliance *Energy Utilization *Innovation-Driven Development*Employee Communication *Equal Treatment of SMEs
Management *Product and Service Safety and Quality *Responsible Sourcing*Anti-unfair Competition *Contributing to Industry Development
*Water Resources Utilization *Responsible Sourcing *Risk and Compliance Management*Tax Compliance *Human Rights Protection
*Pollutant Discharge *Supply Chain Security *Supply Chain Security*Waste Disposal *Data Security and Customer Privacy
*Ecosystem and Biodiversity *Innovation-Driven Development *Circular Economy
Sustainability *Ethics of Science and Technology *Employee Development and Training
Matters Protection *Occupational Health and Safety
*Energy Utilization
*Ethics of Science *Ecosystem and Biodiversity Protection *Stakeholder Engagement
*Rural Revitalization *Human Rights Protection *Occupational Health and Safety
and Technology *Pollutant Discharge *Environmental Compliance
*Social Contributions *Equal Employment *Due Diligence Management
*Equal Treatment of SMEs *Employee Communication *Rural Revitalization
*Data Security and Customer Privacy *Employee Development and Training
*Contributing to Industry Development *Employee Compensation and Benefits
*Anti-Commercial Bribery and Anti- *Risk and Compliance Management
Corruption *Due Diligence Note 1: Financial Materiality "Low" refers to potential impact in the short medium and long term but the severity may not be material.*Anti-unfair Competition *Stakeholder Engagement Note 2: Financial Materiality "Medium" indicates an impact in the short term with futher potential impact in the medium and long term.Note 3: Financial Materiality "High" signifies a considerable short-term impact with a strong likelihood of material impact in the medium and long term.*Tax Compliance
11 12Xindeco 2024 Sustainability Report Management of Material Matters
Step 3 ：Consolidating Impact and Financial Materiality Outcomes Xindeco Materiality Matrix
We consolidated the impact materiality and financial materiality assessment outcomes of various sustainability matters in the form of a
materiality matrix identifying a total of 12 material matters.
16
13
Impact and Financial Materiality Sustainability Matters
14
16 Product and Service Safety and Quality 27 Risk and Compliance Management 24 11
13 Responsible Sourcing 25 Due Diligence
High 201 Climate Response 20 Human Rights Protection 22 25
14 Supply Chain Security 22 Employee Development and Training 21 19 27
11 Innovation-Driven Development 6 Energy Utilization 23 7 6
24 Occupational Health and Safety 8 Circular Economy 8
18
7 Water Resources Utilization 10 Social Contributions 26
19 Equal Employment 9 Rural Revitalization 10
21 Employee Communication 28 Anti-Commercial Bribery and Anti-Corruption 15
Medium 23 Employee Compensation and Benefits 5 Environmental Compliance Management
17
18 Contributing to Industry Development 29 Anti-unfair Competition 5
26 Stakeholder Engagement 3 Waste Disposal 3 29 28
15 Equal Treatment of SMEs 12 Ethics of Science and Technology
17 Data Security and Customer Privacy 30 Tax Compliance 9
212
30
Environment
4 Society
Governance
2 Pollutant Discharge 4 Ecosystem and Biodiversity Protection
Low Financial Materiality
1314
Impact MaterialityXindeco 2024 Sustainability Report Management of Material Matters
Step 4 ：Reporting and Practice Guidance The results of the company's materiality assessment of material matters were reviewed by the Strategy and Sustainability Committee. Detailed
information regarding the management and annual performance of these matters is provided in the relevant sections of this report.Scope of Impact
Value Value
Material Matter 1Chain Opera- Chain Communi- Affected Stakeholders Risks Opportunities Impact Duration Corresponding SDGs Location in the Report
Up- tions Down- ties
stream stream
·Developing a green low-carbon and sustainable business
·Employees ·The extreme weather and natural disasters caused by climate development model to enhance the company's responsible brand
·Customers change may result in asset losses or impairments for the image.·Suppliers company and lead to increased costs. ·Developing innovative products that meet the demands of green and
·Investors ·Low-carbon products are more favored by consumers and low-carbon development and enhancing the green competitiveness Short-term
Climate Response ? ? ? ? ·Banks traditional businesses may face a decline in market share and of products and services in the market driven by the green low-carbon Medium-term and
Climate Response
·Media Institutions business contraction. transformation. Long-term
Circular Economy
·Government and Regulatory ·Short-term financial costs for the company may increase due ·Financial institutions and investors are more inclined towards green
Authorities to investments in the research and development of green and and low-carbon projects. Companies promoting green and low-
·Non-governmental Organizations low-carbon products. carbon development are more likely to attract capital market interest
and secure lower financing costs.·If a company's production operations and products fail to
meet the increasing policy and market demands for resource
recycling it may impact the company's market
competitiveness and that of the company's products.·Customers ·Innovative investments in resource recycling and other areas
·Suppliers may increase the company's financial costs in the short term. ·Strengthening resource recycling to enhance overall operational
·Banks ·Policies and regulations related to energy transition are quality efficiency and reduce operational costs. Medium-term and
Circular Economy ? ? ? ? ·Media Institutions becoming stricter in various countries and regions and ·Promoting the circular economy to expand the scale of related Circular Economy
·Government and Regulatory traditional energy or high-energy-consuming equipment may businesses under the support of sustainable development policies
Long-term
Authorities be phased out leading to asset depreciation. and market preferences.·Non-governmental Organizations ·Energy structure adjustments impact the stability of the supply
chain and limited supply of key resources may increase
related costs.·Promoting clean energy use and optimizing the energy
structure such as investing in photovoltaic rooftops may
increase financial costs for the company in the short term.·Policies and regulations related to energy transition are
becoming stricter in various countries and regions and
traditional energy or high-energy-consuming equipment may
be phased out leading to asset depreciation. ·Optimizing energy structure to reduce reliance on fossil fuels and
·Customers ·Energy structure adjustments impact the stability of the supply mitigate risks associated with energy supply instability. Medium-term and Climate ResponseEnergy Utilization ? ? ·Suppliers chain and limited supply of key resources may increase ·Continuously reducing the company's carbon footprint and enhance Long-term Energy Utilization
related costs. the ability to manage risks arising from energy transition.·Promoting clean energy use and optimizing the energy
structure such as investing in photovoltaic rooftops may
increase financial costs for the company in the short term.·High quality and safety can establish a reliable brand image build
long-term consumer trust and increase product repurchase rates and
·If products and services fail to meet industry standards word-of-mouth marketing.or regulatory requirements it may result in administrative ·In a competitive market excellent products and services become a
Product and Service ·Customers penalties product recalls lawsuits increased repair costs Short-term core competitive advantage attracting high-value customers focused Product and Service Safety and
????
Safety and Quality ·Suppliers insurance fees or even hefty fines or legal compensation. on safety and experience facilitating entry into high-end or Medium-term and Quality
· Quality or safety issues may lead to consumer complaints international markets and expanding business boundaries. Long-term
media exposure harm to brand image and customer loss. ·Strict quality and safety controls reduce product defects after-sales
complaints and recall incidents and over time lower hidden costs
such as repair compensation and fines.·R&D activities typically require significant investment and long
cycles; if technological breakthroughs are not achieved or ·R&D and innovation can generate entirely new business models
results fall short of expectations projects may fail leading to breaking traditional growth bottlenecks. Early launch of innovative
wasted resources and losses on R&D investments. products or solutions can quickly capture market share and establish
·If innovative products deviate from market needs and are industry leadership.poorly received by consumers commercialization may fail ·Through patents proprietary technologies or unique services
·Employees preventing recovery of R&D costs. companies can build strong competitive moats that are difficult for
Innovation-Driven ·Customers ·Substantial R&D expenditures may strain the company's cash rivals to replicate enhancing market share and competitiveness. Medium-term and ? ? ? Innovation-Driven Development
Development ·Suppliers flow and if short-term returns are not realized it could trigger Long-term·High-tech enterprises may benefit from preferential tax policies and
·Investors financial crises or impact other business operations. qualified R&D investments may receive corresponding fiscal
·Leakage or infringement of core technologies could cause incentives or grants.the company to lose its competitive edge and if the company ·R&D efforts in automation digitalization and other areas can
infringes upon others' intellectual property rights it may face optimize production processes improve efficiency and reduce long-
legal disputes and significant compensation liabilities. term operational costs.·Loss or insufficient capabilities of core R&D personnel may
result in project delays or lower innovation quality.N o t e 1:Impact Duration Description:Short-term generally refers to within one year (inclusive) after the end of the reporting period; mid-term refers to one to five years (inclusive) after the end of the reporting period; long-term refers to more than five years after the end of the reporting period.
1 5 16Xindeco 2024 Sustainability Report Management of Material Matters
Scope of Impact
Value Value
Material Matter 1Chain Opera- Chain Com- Affected Stakeholders Risks Opportunities Impact Duration Corresponding SDGs Location in the Report
Up- tions Down- muni-
stream stream ties
·ESG regulations are tightening globally and non-compliance
may result in fines trade restrictions or litigation.·If the supply chain is associated with issues such as
environmental violations corruption or human rights abuses
Responsible Sourcing ? ? ? the company could face brand reputation damage and legal Responsible Sourcing·Implementing responsible supply chain management practices helps
liabilities. meet compliance requirements and shapes a responsible corporate
·Customers ·Over-reliance on high-risk suppliers (e.g. those from conflict image. As market preferences shift consumers are more willing to Short-term
·Suppliers regions or non-compliant with environmental standards) pay a premium for sustainable brands. Medium-term
·Investors could lead to supply disruptions or production halts. ·Building a sustainable supply chain reduces the risk of disruptions and Long-term
·In the absence of a resilient supply chain extreme weather and enhances the stability of product and service delivery.events (such as floods or droughts) or pandemics may cause
supply chain interruptions increased procurement costs or
production shutdowns.Supply Chain Security ? ? ? ·Using compliant raw materials clean energy or low-carbon Supply Chain Security
logistics may increase procurement costs in the short term.·Violations of human rights or labor rights may lead to ·Strengthening human rights protection helps build a responsible
·Employees compliance risks and damage the company's brand image. corporate image. Short-term Suppliers and Customers
Human Rights Protection ? ? ? ·Customers ·Inadequate protection of employee rights may result in ·Promoting a culture of care and safeguarding human rights and labor Medium-term and Employees
·Suppliers higher employee turnover affecting the stability of business rights can enhance employee satisfaction and retention. Long-term
operations.·Attracting a diverse and stable talent pool can support the company's
·Building a systematic talent development mechanism may steady development.Employee Development lead to higher financial and human resource costs. ·Comprehensive career development and training programs help Medium-term and
? Employee Development
and Training ·Employees ·Challenges in talent acquisition increased employee turnover enhance employees' professional skills strengthen talent pipelines Long-term or slow skill upgrades may constrain the company's and provide continuous momentum for the company's long-term
sustainable growth. growth.·Establishing a comprehensive occupational health and safety
·Employees system may increase the company's financial costs. ·A well-developed occupational health and safety system can enhance Short-term Occupational Health and
? ? ? ·Customers ·Occupational health and safety incidents could trigger employees' sense of well-being and belonging thereby boosting the Medium-term Occupational Health and Safety
Safety ·Suppliers negative public opinion lead to fines and other financial company's productivity. and Long-term
losses and damage the company's reputation and image.·Employees
·Customers
·Suppliers ·Failure to properly identify and manage sustainability-related
·Investors negative impacts or risks may expose the company to legal compliance financial reputational and market risks. ·Enhancing trust among stakeholders and the public boosting the
Short-term
Due Diligence ? ? ? ? ·Banks Medium-term and Stakeholder Engagement·Conducting due diligence especially when engaging third- company's reputation and brand influence.·Media Institutions Long-term
·Government and Regulatory party professional services may increase related corporate
Authorities costs and expenses.·Non-governmental Organizations
·Employees
·Customers
·Suppliers ·Poor risk and compliance management may weaken the ·Strengthening risk and compliance management can improve the company's overall risk response capability leading to company's resilience and support sustainable operations. Short-term Me-
Risk and Compliance ·Investors·Banks financial legal compliance and reputational risks.? ? ? ? ·A comprehensive emergency management plan can help the dium-term and Risk and Compliance Management
Management ·Media Institutions ·Inadequate emergency management systems may impair company respond quickly and effectively to crises minimizing Long-term
·Government and Regulatory the company's ability to respond to risks causing damage to business losses and protecting brand reputation.Authorities business operations and brand image.·Non-governmental Organizations
Note1:Impact Duration Description:Short-term generally refers to within one year (inclusive) after the end of the reporting period; mid-term refers to one to five years (inclusive) after the end of the reporting period; long-term refers to more than five years after the end of the reporting period.
17 18Xindeco 2024 Sustainability Report Sustainability-Related Governance
Stakeholder Engagement Sustainability-Related Governance
We value the expectations and concerns of our stakeholders maintain close communication and engagement through diverse We adhere to the concept of sustainable development and continuously improve our governance mechanisms by establishing a
channels and continuously enhance our sustainability management by incorporating their suggestions and feedback. sustainable development governance structure from the board of directors to the executive level. This strengthens the management
of sustainable development issues and ensures stable and long-term operations.Stakeholders Matters of Concern Communication Methods
·Suggestion Box Governance Structure and Mechanisms
·Equal Employment ·Employee Training and Activities
·Compliant Operations ·Employee Satisfaction Survey
·Tax Compliance ·Employee Representative Conference
·Human Rights Protection and Labor Union Congress We comply with the Company Law of the People's Republic of China the Securities Law of the People's Republic of China and other
Employees ·Seminars and Daily Communication relevant laws regulations and regulatory requirements to establish a corporate governance structure composed of the General
·Online Communications Meeting of Shareholders the Board of Directors the Board of Supervisors and the Management forming the "Three Meetings and ·Equal Employment
·Human Rights Protection ·On-site Visits One Management"system. Based on the Articles of Association we have developed a comprehensive governance framework that
·Consumer Protection ·Exhibition Activities includes detailed rules such as the Rules of Procedure for the General Meeting of Shareholders the Rules of Procedure for the Board
·Risk Management ·Customer Satisfaction Survey and
Clients ·Complaint Handling of Directors the Rules of Procedure for the Board of Supervisors and the Rules of Procedure for the General Manager's Office Meeting.Clear delineation of responsibilities and effective checks and balances among the shareholders'meeting the board of directors
·Tax Compliance
·Environmental Compliance ·Online Communications the board of supervisors and the management ensure standardized business operations. We also standardize the convening and
·Water Resource Conservation and ·On-site Visits
·Exhibition Activities holding of shareholders'meetings and facilitate shareholder participation and voting through online voting channels ensuring all ·Wastewater Management
·Professional Platforms shareholders fully exercise their rights to be informed to participate to vote and to supervise on major corporate matters thereby
Suppliers ·GHG Emissions
safeguarding their legitimate rights and interests.·Information Disclosure of Listed
·Compliant Operations Companies
·Anti-corruption · Investor Online Group Reception Day
Audit and Risk Control Committee
·Tax Compliance · Investor Hotline and Email
Shareholder's
·Complaint Mechanism and ·Shenzhen Stock Exchange Interactive
Meeting
Nomination Committee
Investors ·Whistleblower Protection
Platform
· Shareholders' Meeting and Earnings
·Conference Call & Webcast Board of Supervisors Board of Directors Remuneration and Appraisal Committee
·Compliant Operations ·Information Disclosure of Listed Budget Committee
·Risk Management Companies Management team
·Anti-corruption ·Online Communications
Banks ·Tax Compliance ·On-site Visits Strategy and Sustainability Committee
·Environmental Compliance ·Information Disclosure of Listed
·Responsible Marketing Companies Functional Management
·Consumer Protection ·Online Communications Departments Business Segments
Media Institutions ·GHG Emissions ·Visitor Reception
·Online Communications
·Environmental Compliance ·On-site Visits
·Community Investment ·Government-Enterprise Meetings
·Compliant Operations ·Participation in Policy
Government and Regulatory Bodies Recommendations
·Human Rights Protection
·Responsible Supply Chain ·Industry Association Exchange
·Consumer Protection ·Online Communications·Public Service
Non-governmental Organizations ·Community Investment
1920
Automotive Dealership
Supply Chain
Electronics Technology
Digital Intelligence
Technology
Safety and Environmental
Management Department
Digital Management
Department
Securities Department
Supervision Office
Legal department
Risk Management and
Compliance Department
Internal Control and Audit
Department
Finance Department
Financial Budget
Department
Strategic Investment
Management Department
HR Department
CEO Office
Party Committee Office厦门信达 2024 年度可持续发展报告 Sustainability-Related Governance
In 2024 we completed the renaming and functional adjustment of the professional committees under the board of directors. The
strategy committee was renamed the strategy and sustainability committee with its responsibilities expanded to include research Professional Background Board Committees
analysis and evaluation of our sustainability as well as issues related to environmental social and governance matters and Attendance
（Boardproviding corresponding recommendations. The audit committee was renamed the audit and risk control committee with its Name Occupation Age meetings
Risk Strategy and Board
responsibilities expanded to include overseeing the implementation of comprehensive risk management work by our management Industry Operations Management Financial and Audit and Remuneration Budget Nomination committeeExperience Management and Accounting Sustainability Risk Control and Appraisal Committee Committee meetings）
team in addition to its original financial supervision duties. We have set up the strategy and sustainability committee the audit and Compliance Committee
Committee Committee
risk control committee the nomination committee the remuneration and appraisal committee and the budget committee all of
which diligently perform their duties in accordance with relevant laws regulations and internal rules. These committees conduct
Wang
research on relevant sustainability topics jointly guide and supervise the management of sustainability issues and provide support Mingcheng Chairman 55 ● ● ● ● ● 100%
(Male)
for the board of directors in making informed decisions.Zeng Yuan Director 43 ● ● ● ● ● 100%
(Male)
In 2024 we formulated documents such as the "Certified Public Accountant Firm Selection System" and the "Comprehensive Risk Management
System" and revised internal governance documents including the "Articles of Association" "Shareholders' Meeting Rules" "Implementation Su Yi (Male) Director 35 ● ● ● 100%
Rules for the Board of Directors' Special Committees" "General Manager's Office Meeting Rules" "Management of Shares Held by Directors
Supervisors Senior Executives and Changes in Those Shares" "Accountability System" "Independent Director Annual Report Work System"
Wu
"Management of Raised Fund Utilization" "Investor Relations Management System" and "Derivative Investment Management System" Xiaoqiang Director 46 ● ● ● ● 100%
(Male)
continuously improving our corporate governance structure and internal control systems. We held a total of 16 board meetings 7 supervisory
board meetings 5 shareholder meetings 9 audit and risk control committee meetings 6 strategy and sustainability committee meetings 2 Li Yong Director 51 ● ● ● 100%
nomination committee meetings 6 remuneration and appraisal committee meetings and 3 budget committee meetings. (Male)
Zhang
Wenna Director 45 ● ● ● 100%
(Female)
Liu Dajin Independent
(Male) Director 59 ● ● ● ● 100%
Appointment of Directors and Senior Management Cheng
Wenwen Independent 60 ● ● ● ● 100%
(Male) Director
We clarify the nomination and selection procedures for directors and senior management through governance documents such
Yuan
as the "Articles of Association" and "Nomination Committee Implementation Rules." The board of directors has established a Xinwen Independent
(Male) Director
62●●●100%
Nomination Committee responsible for researching the selection criteria and procedures for directors and senior management
and providing recommendations. The Nomination Committee selects and reviews candidates based on diversified factors such as
Jiang Feng Vice
educational background professional expertise and work experience assessing their qualifications for the role. After the board of (Male) President 49 ● ● /
directors reviews and approves the candidates nominated by the Nomination Committee directors are elected by shareholders'
meetings while senior management is appointed by the board of directors after review and approval. Lin Weiqing Vice
(Male) President 54 ● ● /and CFO
Vice
Diversity and Specialization Wang The senior management team Xiaoshun President
(Male) and Board
43●●●/
possesses extensive experience Secretary
The board of directors consists of 9 members with diverse professional backgrounds in operations management risk
Xie Haisu Vice
including business management economics law and financial accounting. They 52 ● ● /control and compliance and (Male) President
bring extensive experience in operations management risk control and compliance financial management with
and financial management. Among them 3 are independent directors making up expertise covering various fields
33.33% of the board. These independent directors are seasoned professionals in such as business management
fields such as financial accounting and business management. As the conveners of financial accounting and law. To continuously enhance our directors supervisors and senior management's performance capabilities we organized five training
the audit and risk control committee nomination committee and remuneration and sessions in 2024 including interpretations of the new Company Law and financial topics hosted by the Listed Company Association
appraisal committee the independent directors diligently fulfill their duties and play of Xiamen. Additionally our directors supervisors and senior management participated in five sessions of the Xiamen regional listed
an active role in the operation of each specialized committee. companies'training series.
21 22厦门信达 2024 年度可持续发展报告 Sustainability-Related Governance
Compensation of Directors and Senior Management transactions we effectively implement a conflict-of-interest voting mechanism. For related-party transactions that meet certain
criteria an independent directors' meeting is convened to review the matters with independent opinions provided on the proposals.This ensures the guidance and supervision of independent directors protecting the interests of minority shareholders.The compensation of our directors is implemented according to the standards approved by
the shareholders' meeting and the compensation of senior management is proposed by the
Remuneration and Appraisal Committee of the Board of Directors based on factors such as the Conflicts of Interest
positions the responsibilities market salary trends etc. and is subject to annual performance
assessment and performance-based rewards based on the company's performance for that year. As of December 31 2024 our
To prevent conflicts of interest and ensure that directors' duties are not affected by such conflicts we have clearly outlined the
The proposal is then reviewed and approved by the board of directors. directors and senior management
To establish a sound incentive and restraint mechanism aligned with our development strategy collectively held 1186000 shares of
fiduciary duties of directors in our Articles of Association. Specifically without the approval of the shareholders' meeting directors
the company accounting for 0.18% are prohibited from using their position to seize business opportunities that rightfully belong to the company or to engage in business fully motivate our directors and senior management and effectively align their interests with
of the total share capital. activities that are similar to those of the company either for themselves or for others.those of our shareholders to drive long-term value growth we have formulated and implemented
the "2020 Restricted Stock Incentive Plan" and the "2022 Restricted Stock Incentive Plan."
Detailed Shareholding of Directors and Senior Management
No. Name Position Number of Shares Held Investor Relations Management
1 Wang Mingcheng Chairman 405000 We attach great importance to investor relations management. To ensure smooth communication between the company and
investors we comprehensively revised the "Investor Relations Management System" in 2024 taking into account the actual situation.
2 Zeng Yuan Director 0
We have established and improved the investor relations management mechanism clarified the basic principles of investor relations
3 Su Yi Director 0 management key communication content working methods communication channels organizational structure and functions as
well as information disclosure channels in order to guide and regulate investor relations management and safeguard the basic rights
4 Wu Xiaoqiang Director 135000 of investors.
5 Li Yong Director 0
6 Zhang Wenna Director 0 Information Disclosure Management
7 Liu Dajin Independent Director 0
We adhere to relevant regulatory rules and the provisions of the "Information Disclosure Affairs Management System" to emphasize
8 Cheng Wenwen Independent Director 0 information disclosure management. We fulfill our information disclosure obligations in terms of scope deadlines and procedures
providing all investors with truthful accurate timely and comprehensive company information to ensure that all investors have
9 Yuan Xinwen Independent Director 0
equal and timely access to relevant content safeguarding their right to information and other related rights.
10 Jiang Feng Vice President 320000
11 Lin Weiqing Vice President and CFO 135000 Investor Communication
Vice President and Board
12 Wang Xiaoshun Secretary 191000 We actively engage in investor communication through various channels such as investor
13 Xie Haisu Vice President 0 hotlines email investor surveys and on-site visits shareholder meetings and performance
briefings roadshows and the "Interactive Easy" platform on the stock exchange providing
investors with diverse ways to enhance their understanding of the company. In 2024 we Answered over
focused on media monitoring and investor call handling promptly responding to investor
investor hotline calls
Related-Party Transaction concerns via the "Interactive Easy" platform. We answered over 100 investor hotline calls 100
and addressed 128 investor inquiries on the platform. We also participated in the Xiamen-
Addressed
To regulate related-party transactions and ensure that such transactions do not harm the legitimate rights and interests of the listed companies' 2023 Annual Investor Online Collective Reception Day engaging in "one-
company and non-affiliated shareholders we have developed the "Related-Party Transaction Management System" in accordance to-many" communication with investors on topics such as 2023 operating performance 128
with relevant laws regulations and our Articles of Association. During the review and decision-making process of related-party corporate governance and development strategy. investor inquiries on the platform
23 24厦门信达 2024 年度可持续发展报告 Sustainability-Related Governance
The Party Building
We have consistently upheld and strengthened the leadership of the Party with political
construction as the core focus and have comprehensively advanced all aspects of Party
development. We fully leverage the leadership role of the Party Committee the battleground role
of grassroots Party organizations and the exemplary role of Party members. We continuously
Held party committee meetings
improve the functions of Party organizations and enhance the quality of Party building work
providing important support and guarantee for the company's strategic transformation and high- 35in total
quality development through high-quality Party construction.We adhere to the principle of integrating the strengthening of the Party's leadership with the "Major decision-making Major
personnel appointments
improvement of corporate governance ensuring that the Party committee takes the lead in and dismissals Major project
investment decisions and Large
formulating the principles and directions on key matters such as the company's strategy business Fund Utilization" issues studied
planning corporate restructuring organizational structure and important regulatory system
in total
development as well as the pre-research and discussion mechanism for "Major decision-making 181
Major personnel appointments and dismissals Major project investment decisions and Large Fund
Utilization" issues. This approach continuously improves the corporate governance system and
effectively enhances centralized leadership and scientific decision-making. In 2024 we revised the Major operational management Party Discipline Study and Education
issues discussed in advance
"Party Committee Meeting Rules" dynamically adjusted the "Pre-research and Discussion List of Major
Operational Management Issues" optimized the decision-making process and improved decision- 135in total Major project investment decisions and Large Fund Utilization" Planet" Party building brand forming a "1+9" brand matrix with
making efficiency and quality to mitigate decision-making risks. A total of 35 Party committee meetings
issues were studied and 135 major operational management the "Striver" brand as the core.were held during which 181 "Major decision-making Major personnel appointments and dismissals
issues were discussed in advance.The Party Committee continues to strengthen talent team
We continuously optimize the structure of our Party organization building by improving the selection and appointment
in line with the company's business development strengthening mechanism as well as implementing measures such as
the grassroots Party organization and building strong grassroots talent training and exchanges to cultivate a high-quality and
fortresses. In 2024 we followed organizational restructuring high-level talent pool. In 2024 we revised the "Management
and completed the election of 8 Party branches and the Measures for the Selection and Appointment of Cadres"
supplementary election of 3 Party organizations. We organized and the "Management Measures for the Selection and
Party and disciplinary inspection personnel training and Cultivation of Outstanding Young Cadres." Through top-
comprehensively strengthened the grassroots Party cadres down recommendations organizational recommendations
through methods such as "theoretical study + special discussions and market recruitment we selected and appointed middle-
+ joint learning." We also continued to promote the development level and young cadres. We also organized exchanges and
of the Party building brand by launching the "New Dike" Striving discussions for young cadres as well as talent rotation and
Pigeon Party Building brand image and pushing forward the job exchange programs ensuring talent reserves for the
"one branch one brand" initiative. We newly created the "Smart company's high-quality development.Party Affairs and Discipline Inspection Supervision Cadre Training
25 26ENVIRONMENT
⊙ 2024 Management Targets for Environmental Matters
·Continue to increase investment in the R&D of green products
·Promote green production methods to reduce costs and improve efficiency
·Develop and promote net zero demonstration projects
·Promote the reuse of reclaimed water and strengthen the recycling of water resources
·Avoid conducting business activities in areas with important ecological functions or
sensitive and fragile environments
·Ensure environmental compliance and achieve pollutant discharge standards
·Continuously improve the recycling rate of general wasteXindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Climate Response
Designing Sustainable Products
Facing the growing severity of global climate change which poses serious threats
We incorporate green design principles into all stages of the product lifecycle developing
to human well-being and the Earth's ecosystems we remain committed to a green
and designing more sustainable products to minimize greenhouse gas emissions during
and low-carbon development philosophy and continuously introduce and develop
the product usage phase.innovative digital technologies to drive the transformation of our industrial chain
toward greener and lower-carbon practices. We actively expand into green industries
such as green mobility services and scrap steel recycling to reduce resource
consumption. We are steadily advancing the transition to sustainable production and
lifestyles while continuously strengthening our resilience to climate change challenges. Facilitating Supply Chain Decarbonization
We innovatively create open shared and sustainable digital platforms to provide digital
solutions for the industry helping upstream and downstream enterprises in the supply
chain improve quality and efficiency.Climate Strategy Utilizing Renewable Energy
We increase the use of renewable energy sources such as solar power in our operations
reduce the consumption of fossil fuels and drive the sustainable transformation of the energy
We actively respond to natioanl carbon peaking and carbon neutrality goals and the global temperature control targets set under the Paris
structure.Agreement. Based on our own operational realities we have established carbon peaking and net zero targets: to peak carbon emissions
by 2030 and to reach the net zero emissions by 2060. To achieve these strategic goals within the framework of lTG Holding's Net Zero
Strategywe have referred to the "Corporate Net Zero Pathway - Delivering the Paris Agreement and the Sustainable Development Goals"
released by the United Nations Global Compact (UNGC) and formulated five key carbon reduction initiatives to drive progress toward our Developing Sustainable Industries
net zero vision.We actively engage in green industries such as green transportation services and scrap steel
recycling promote the circular economy and build a sustainable industrial system with
characteristics of low-consumption low-emission and high-efficiency.Executing Sustainable Actions
We align our operations with sustainable development principles and implement
initiatives such as eco-friendly office practices and ecological conservation while
simultaneously fostering economic growth and collaborating to safeguard the planet.
29 30Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Climate-Related Risks Opportunities 2030 年 2050 年
Climate-related Risks Current
and Financial Impacts Status SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5
Droughts
We adhere to a scientific and systematic approach to identifying and assessing climate-related risks and opportunities. Drawing on scenario Shortages of freshwater resources and
models developed by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) we identify and reduced surface water supplies for
agricultural irrigation and other human
evaluate the physical and transition risks and opportunities that our business may face in the short medium and long term as a result of
uses.climate change. Based on these assessments we formulate corresponding risk response strategies to better manage climate-related risks
and seize transition opportunities under the trend of sustainable development. Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact
Physical Risks Physical Risk Management
We selected the very low GHG emissions scenario (SSP1-1.9) and low GHG emissions scenario considered (SSP1-1.9) the likely
Physical Risks Impact Period Response Measures
the high-growth high-carbon emission scenario (SSP5-8.5) from global mean sea level rise is 0.28-0.55 meters and the average
the IPCC's Shared Socioeconomic Pathways (SSP) to identify and annual global land precipitation is projected to increase by 0-5%. ·Monitor and promptly issue typhoon warning
assess climate-related risks to our business development in the Compared to 1995-2014 the global surface temperature is very information reasonably adjust production
short medium and long term. likely to be higher by 3.3℃ to 5.7℃ by 2100 under the very high schedules stock necessary supplies and ensure the
stable operation of production lines.According to the IPCC's Sixth Assessment Report: Compared GHG emissions scenario (SSP5-8.5) the likely global mean sea ·Strengthen and protect key buildings and
to 1850-1900 global surface temperature averaged over 2081- level rise is 0.63-1.01 meters and the average annual global land inventories and relocate vulnerable inventory items
to safe locations in a timely manner to prevent
2100 is very likely to be higher by 1.0℃ to 1.8℃ under the very precipitation is projected to increase by 1-13%. Floods and Typhoons damage from strong typhoons and heavy rainfall.
Damage to urban infrastructure and Short-term
·Implement a graded management system for floods
impacts on human well-being and Medium-term
and typhoons classifying the severity and scope
health particularly in coastal cities and and Long-term
of damage into four levels (Level I II III and IV) and
residential areas.Physical Risk Assessment organize emergency support rescue and recovery
accordingly.·Establish and continuously improve emergency
2030 年 2050 年 response plans for typhoon and flood prevention
Climate-related Risks Current and regularly organize emergency drills for
Status SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5 employees to enhance emergency management
capabilities.Floods and Typhoons
Damage to urban infrastructure and Sea Level Rise ·Regularly monitor meteorological and oceanic
impacts on human well-being and health Loss of human and natural systems in changes and relocate or renovate assets that may be
particularly in coastal cities and residential Medium-term low-lying coastal areas reduction of affected by sea level rise for protection.areas. and Long-termcoastal fishery resources decreased ·Avoid new investments or construction in low-lying
precipitation and rising temperatures. areas or regions vulnerable to sea level rise.Sea Level Rise
Loss of human and natural systems in low-
lying coastal areas reduction of coastal Extreme Heat ·Reasonably arrange employees' working hours to
Increased stress and mortality among avoid physical labor or outdoor operations during
fishery resources decreased precipitation people due to higher temperatures and Short-term periods of extreme heat thereby reducing the risk of
and rising temperatures. extreme heat events higher rates of heat- Medium-term heatstroke.related mortality and morbidity among and Long-term ·Install air conditioning fans and other cooling
Extreme Heat humans and wildlife and heightened equipment in workplaces to provide employees with
Increased stress and mortality among risks to food and water security. a comfortable working environment.people due to higher temperatures and
extreme heat events higher rates of heat- ·Improve systems and measures for water resource
related mortality and morbidity among Droughts conservation and enhance the efficiency of water
humans and wildlife and heightened risks Shortages of freshwater resources and Short-term recycling and reuse.to food and water security. reduced surface water supplies for Medium-term ·Regularly conduct water conservation training
agricultural irrigation and other human and Long-term
for employees promote the use of water-saving
uses.Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact technologies and equipment and reduce water waste.
31 32Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
到2060年前实现碳中和愿景
Transition Risks Climate-related Metrics and Targets
The IEA scenarios include the Stated Policies Scenario (STEPS) the Announced Pledges Scenario (APS) as well as the Sustainable
Development Scenario (SDS) and Net Zero Emissions by 2050 Scenario (NZE). We combine the NZE and the STEPS within the IEA scenario
model to assess the transition risks and opportunities for our future development posed by climate policies and measures. Corresponding We have set carbon peaking and net zero targets:
measures are formulated to achieve sustainable development under climate-related transition risks and opportunities.To peak carbon Reach the net zero
emissions by emissions by
According to the IEA's "World Energy Outlook" (WEO): Under Net Zero Emissions by 2050 (NZE) Scenario the global energy-related
carbon emissions reach net zero by 2050 limiting the rise in global temperatures to 1.5° C. Under the Stated Policies Scenario (STEPS) 2030 2060
which considers only specific policies already enacted or announced by governments annual carbon emissions from energy and
industrial processes will increase from 34 gigatonnes in 2020 to 36 gigatonnes in 2030 remaining at roughly the same level until 2050.If emissions continue along this trajectory and non-energy-related greenhouse gas emissions follow a similar trend the temperature
will rise by approximately 2.7℃ by 2100 (with a 50% probability). By 2050 the share of renewable energy in global electricity
generation will be close to 55%.GHG Emissions Management
Transition Risk Management
Transition Risks Impact Period Response Measures The Organizational In accordance with the requirements of ISO14064-1:2018 we have conducted the GHG
Boundary for GHG inventory for 2024 using the operational control approach for the entities over which the
Closely monitoring domestic and international policy company has operational control.adjustments and industry developments strengthening Inventory
analysis of foreign exchange and commodity market trends
and prudently using financial derivatives to hedge against
Short-term
Macroeconomic trends and policy exchange rate and price risks.Medium-term
adjustments in the industry Continuously enhancing the risk management system and
and Long-term
actively preventing and mitigating potential risks. Accelerating Xiamen Xindeco Ltd.business model transformation to align with policy directions
and industry trends while enhancing quality and efficiency to
ensure steady business growth.Implementing five carbon reduction initiatives by designing
sustainable products facilitating supply chain decarbonization
Short-term
Regulatory pressure from GHG utilizing renewable energy developing sustainable industries
Medium-term
emission reduction policies and executing sustainable actions to reduce greenhouse gas
and Long-term
emissions and drive the industry's shift toward low-carbon
growth.Keeping pace with market trends accurately responding to
policy directions strengthening investment in independent
Short-term
Requirements for clean technology R&D and continuously innovating products while meeting
Medium-term
innovation and energy transition customer and market needs. Enhancing R&D capabilities and
and Long-term
product technology levels and meeting the requirements for
clean technology innovation and energy transition.Closely aligning with industry and market demand steadily
expanding production capacity and developing niche
Short-term application markets through both organic growth and external
Growing market demand for
Medium-term expansion. Strengthening analysis of the industry value chain
sustainable products and services
and Long-term and business models optimizing brand deployment and
driving cost reduction efficiency improvement business
growth and enhancement of user value.
3334
Official Vehicles
Other Investment
Companies
Owned and Leased
Buildings
Official Vehicles
Electronics
Technology Segment
Owned and Leased
Buildings
Warehouse Operations
Equipment
Supply Chain Official Vehicles
Segment
Owned and Leased
Buildings
Official Vehicles
Automobile
Dealership Segment
Owned and Leased
Buildings
Official Vehicles
Digital Intelligence
Technology Segment
Owned and Leased
Buildings
Organizational Operational
Boundary BoundaryXindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
The Operational Primary GHG 2024 GHG Emissions
GHG Category Definition
Boundary for GHG Emission Sources
Inventory Direct Greenhouse Gas Emissions Category 2022 Emissions 2023 Emissions 2024 Emissions
refer to the greenhouse gas emissions
produced by the organization itself ·Natural gas boiler
Our greenhouse gas inventory scope for
including the emissions generated ·Gasoline business
2024 includes Scope 1 direct emissions Scope 1 from burning fossil fuels and industrial vehicles Scope 1: Direct Emissions（tCO2e） 1594.00 1560.13 1445.97
and Scope 2 indirect emissions. Scope 1 processes. They are divided into ·Diesel business
stationary combustion emissions vehicles
covers emissions from the combustion mobile combustion emissions process Scope 2: Indirect Emissions（tCO2e） 24981.80 27170.77 24375.33
of natural gas boilers vehicles and other emissions and fugitive emissions.combustion facilities while Scope 2 Indirect Greenhouse Gas Emissions Total Emissions（tCO2e） 26575.80 28730.90 25821.30
includes greenhouse gas emissions from refer to the greenhouse gas emissions
·Electricity forpurchased electricity. The specific details generated from the energy consumed Emission Intensity（tCO e/ production 2Scope 2 by the organization such as electricity
·Electricity for office hundred-million RMB of operating 28.27 40.16 58.97of our greenhouse gas inventory scope for and thermal energy. This includesuse revenue）
2024 are as follows: purchased electricity purchased
steam and others.Unit：tCO2e GHG Emissions Unit：tCO2e/hundred-million RMB of operating revenue
80.00
30000.00
70.00
25000.0058.97
Seven types of greenhouse gases incuding carbon dioxide (CO2) methane (CH4) nitrous oxide 20000.00 60.00GHG (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) sulfur hexafluoride (SF6) and 24981.80
Categories nitrogen trifluoride (NF3). 15000.00 50.00
27170.7724375.33
10000.0040.00
40.16
5000.0030.00
For different emission sources under Scope 1 and Scope 2 we select appropriate emission factors 28.27
for GHG emissions calculation based on the 2006 IPCC Guidelines for National Greenhouse Gas
Emission 0.00 1594.00 1560.13 1445.97
Inventories the General Rules for Calculation of the Comprehensive Energy Consumption (GB/ 20.00
Factor 2022 2023 2024T 2589-2020) and the 2022 electricity emission factor released by the Ministry of Ecology andScope 1：Direct Emissions（tCO e)Environment. 2Scope 2：Indirect Emissions（tCO2e)Emission Intensity（tCO2e/ hundred-million RMB of operating revenue）
GHG In 2024 our GHG emissions (including GHG Scope 1 and Scope 2) amounted to 25821.30 tCO2e
Emissions with an emission intensity of 58.97 tCO2e per hundred million RMB of operating revenue.
35 36Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
GHG Emission Reduction Actions Fixed LED fixtures
In alignment with the principles of green and low-carbon development we are committed to implementing comprehensive energy-
Our fixed LED lighting products have received the China Energy Conservation Certification from the China Quality Certification Center
saving and emission-reduction initiatives including designing sustainable products facilitating supply chain decarbonization utilizing
(CQC). These products offer advantages such as energy efficiency extended lifespan and environmental friendliness. Compared
renewable energy and developing sustainable industries to improve resource and energy efficiency. Through these efforts we strive
to traditional lighting technologies LEDs provide higher luminous efficacy enhanced durability and stability ensuring long-term
to enhance resource and energy efficiency achieve cost reduction and operational excellence minimize greenhouse gas emissions
reliable illumination for users. Additionally LED products are free from hazardous heavy metals like mercury do not emit dangerous
and fulfill our commitment to national carbon peaking and carbon neutrality goals as well as global climate objectives.substances during use and have minimal environmental impact upon disposal.Designing In the process of product research development and manufacturing we are committed to
Sustainable integrating green design principles throughout all stages of the product lifecycle. We focus on Intelligent Retrofit of Xiamen Municipal Road Lighting
designing and developing more sustainable products reducing greenhouse gas emissions during
Products the usage phase and promoting carbon neutrality across the entire value chain.The energy-saving and intelligent LED street lamp applied
in the first phase of Xiamen's municipal road lighting
integrates advanced technologies such as self-cleaning
high heat dissipation and intelligent light distribution.Paper-based Antenna RFID Tag These lights are equipped with remote control and self-
diagnostic functions allowing brightness adjustments
based on community needs and real-time fault reporting
thereby enhancing maintenance efficiency. The energy-
Our paper-based antenna RFID tag products have undergone saving rate of these products exceeds 50% leading to
carbon footprint assessments by Carbon Footprint Ltd and an annual reduction of approximately 25.65 million
have been honored with the "Most Influential Innovative kilowatt-hours of electricity consumption in municipal
road lighting. This reduction is equivalent to saving
Product Award" in the China Internet of Things (RFID) industry.about 3152 tons of coal equivalent and decreasing
These products independently developed by our company greenhouse gas emissions by 14408 tons supporting
eliminate non-degradable PET materials in favor of FSC- Xiamen's commitment to green and low-carbon urban Intelligent Retrofit of Xiamen Municipal Road Lighting
certified paper substrates and employ production processes development.that meet green environmental standards. This approach
achieves the environmental goals of being "degradable Xindeco Intelligent Technology Park
An annual reduction of approximately This reduction is equivalent to saving about Decreasing greenhouse gas emissions by
recyclable and reducing consumables" while also enhancing
the conductivity and stability of the tags lowering energy 25.65 3152tons of coal equivalent 14408tons
consumption and supporting green manufacturing. project to create a modern industrial park. The project covers million kilowatt-hours of electricity
Approximately 60% of the greenhouse gas emissions from approximately 29100 square meters with a total construction consumption in municipal road lighting
our three types of tag products originate from the raw area of 77800 square meters incorporating an RFID research
material acquisition stage making it a critical area for carbon and development laboratory green intelligent workshops
reduction. Given that nylon material RFID washable labels office buildings and supporting facilities. Upon completion
emit about 38% more greenhouse gases than satin material the Xindeco Smart Technology Park will further enhance our Facilitating Supply Chain
RFID washable labels we have developed a plan to gradually market competitiveness. Decarbonization
replace nylon washable labels and are promoting the research We are committed to improving capabilities of building open
and development of green washable label raw materials shared and sustainable digital platforms continuously promoting
striving to create high-quality green and low-carbon products. enterprise digitalization in the integrated supply chain exploring
The project covers approximately With a total construction area of the application of new technologies such as the Internet of
In 2024 Xiamen Xindeco IoT invested in and commenced 29100square meters 77800 Things Internet and robotic automation and assisting in the square metersthe construction of the Xindeco Intelligent Technology Park green transformation and upgrading of the supply chain.
3738
HighlightXindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Utilizing We promote the use of renewable energy sources such as solar and wind power in our Xindeco E-sign System operations gradually reducing the use of fossil fuels and other non-renewable energy
Renewable Energy sources and driving the transformation of our energy structure.Xindeco E-sign System continues to enrich internal single-signature scene applications. Building on the electronic signature of
trade delivery notes all inbound and outbound documents in the self-managed steel warehouse have been electronically signed
effectively standardizing the signature process. By promoting dual-signature scenarios upstream and downstream the system
reduces offline paper circulation for customers achieves paperless office operations saves resource consumption and promotes low- Green Electricity
carbon transformation and development of the business. Currently the average monthly signature for the supply chain electronic
signature system has exceeded 5200 copies.Xindeco Tongbao Automobile actively
practices the "360-degree Circular Carbon
Reduction" concept. The company
implements four key measures of creating
Intelligent Warehousing System energy usage reports signing a 24/7 Power
Purchase Agreement (PPA) procuring green
The Intelligent Warehousing System aims to establish a unified electricity and carbon offsets and using
standard system for intelligent warehousing strengthen upstream distributed renewable energy to achieve
BMW GREEN STAR Dealer
and downstream collaboration enhance industrial integration renewable energy transition.and operational control and relying on data interconnection
through the network business order platform optimize warehouse
resources and provide personalized services. In 2024 we took
Xindeco Hongda Warehouse as a pilot comprehensively upgraded
the intelligent warehousing system added automatic weighing and Developing We seize the transformation opportunities brought by sustainability risks actively invest
early warning functions compared data in real time and handled Sustainable in sustainable industries such as green mobility services and build a low-consumption
exceptions promptly effectively solving the contradictions between Intelligent Warehousing System low-emission and high-efficiency sustainable industrial system to achieve high-quality
business efficiency and risk control personnel requirements and Industries development.business transformation. In addition the system records manual saved labor costs and also achieved precise optimization of supply
intervention details which can effectively reduce the risk of false chain management through quantitative analysis promoting cost
records and forged documents. The application of the system has reduction and efficiency improvement.Sustainable Transport with New Energy Vehicles
We continue to respond to national
environmental protection requirements
and actively advocate for green
transportation striving to build a green
mobility ecosystem. In 2024 we opened
multiple new energy vehicle (NEV) brand
dealerships experience centers and
body and paint centers. At the same time
several of our 4S stores introduced and
began selling pure electric and plug-in
hybrid electirc vehicles. New Energy Vehicle Dealerships
In addition we have cumulatively built three public charging stations for new energy vehicles with 44 charging terminals and a
total installed power of over 2600 kWh. In 2024 we supplied 2.407 million kWh of electricity to new energy vehicle owners.Intelligent Warehousing System Implemented at Xindeco Hongda Warehouse
39 40Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Technology Xiamen Xindeco IoT drives its green production concept through technological Executing We align our operations with sustainable development principles and implement
innovation significantly reducing energy consumption and greenhouse gas emissions initiatives such as eco-friendly office practices and ecological conservation while
Innovation for by implementing smart upgrades process optimization and resource-intensive Sustainable Actions simultaneously fostering economic growth and collaborating to safeguard the planet.Green Production applications effectively advancing the achievement of sustainable development goals.In 2024 several green and energy-saving projects were carried out
Our subsidiary Xindeco Tongbao Automobile continues to advance its green and sustainable transformation. Through a series of
initiatives in daily operations it actively explores greenhouse gas reduction potential and is building a "zero-carbon 4S dealership"
Innovating EAS Tag Prototyping Process Applying Fiducial Mark Printing Technology on achieving PAS 2060 - Carbon Neutrality verification.Backing Paper
Two production steps were streamlined into a single Fiducial mark printing on backing paper replaced
molding process reducing equipment start-stop traditional composite processes reducing equipment ·High-efficiency lighting and sanitary fixtures are used with intelligent
frequency by over 30%. Energy consumption and idle start-stop frequency by 60% and minimizing material zoning controls to enhance energy savings.losses were lowered product yield improved by 15% loss caused by size deviations. Taking the vortex004
and approximately 500 kilograms of waste is expected as an example the scrap rate dropped from 0.54% ·The showroom's glass curtain walls are made of environmentally
to be reduced annually equivalent to a 0.28-ton to 0.05% saving 10000 meters of backing paper friendly energy-efficient materials to maintain indoor temperature
reduction in greenhouse gas emissions. equivalent to 0.4 tons of pulp. stability improve energy efficiency and reduce greenhouse gas e
missions.·Drinking water for customer reception is provided through purification
systems and served in glass cups reducing the use of bottled water
and PET materials.The TID chip inspection process was shifted forward Automated web guiding replaced manual operations
·Special EHS inspections are conducted to promote green after-sales PAS 2060 - Carbon Neutrality Verification for
to the binding stage enabling early detection and improving slitting precision to ±0.1mm reducing Xindeco Tongbao Automobile's 4S Dealership
services.interception of defective chips reducing rework and paper waste by 12% and saving more than 0.3 tons of
scrap rates and lowering energy consumption during paper annually.chip replacement by approximately 1%.Optimizing TID Screening Process for Upgrading the Auto Web Guiding
State Grid Products System for Miosa Slitting
41 42Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Energy Utilization Energy Structure
In 2024 our comprehensive energy consumption was 6340.63 tons of coal Used a total of 4.04%
equivalent. In terms of the energy consumption structure the largest share 6.32%
kWh
came from purchased electricity accounting for approximately 89.64%. 822388.80
Regarding the greenhouse gas emissions from energy consumption the of photovoltaic electricity
emissions from purchased electricity accounted for the highest proportion
making up 94.40% of the total greenhouse gas emissions from energy Reducing greenhouse gas emissions by
consumption for the year. 442tons 89.64%
We promote the use of renewable energy such as solar power in our
■ Electricity
production operations and are gradually driving the energy transition. In
2024 we used a total of 822388.80 kWh of photovoltaic electricity reducing ■ Gasoline
greenhouse gas emissions by 442 tons. ■ Diesel
2024 Energy Consumption Structure
Energy Type 2022 2023 2024
Electricity(kWh) 43804658.56 48491667.63 46248893.78 Energy Consumption(Unit:tons of coal equivalent)
Gasoline（L） 313390.51 426323.85 372817.75
Diesel（L） 228202.03 220373.50 204445.83 8000
Natural Gas（m3） / 170.12 / 7000
0.23
276.15
Liquefied Petroleum Gas（t） 1.44 / / 2.47 457.92 256.196000 285.96 400.45
Total / / / 336.62
5000
2022 Total Energy 2023 Total Energy 2024 Total Energy 2024 Energy
Energy Type Consumption (tons of Consumption (tons of Consumption (tons of Consumption
coal equivalent) coal equivalent) coal equivalent) 4000Share (%) 5959.63
Electricity(kWh) 5383.59 5959.63 5683.99 89.64 5683.99
3000
5383.59
Gasoline（L） 336.62 457.92 400.45 6.32
2000
Diesel（L） 285.96 276.15 256.19 4.04
1000
Natural Gas（m3） / 0.23 / /
0
Liquefied Petroleum Gas（t） 2.47 / / /
202220232024
Total 6008.64 6693.93 6340.63 100
Electricity Gasoline Diesel Natural Gas Liquefied Petroleum Gas
43 44Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Ecosystem and Environmental
Biodiversity Protection Compliance Management
We always regard the protection of ecosystems and biodiversity as a crucial aspect of We abide by the "Environmental Protection Law of the People's Republic of China" the "Atmospheric Pollution
our sustainable development. We strictly abide by relevant laws and regulations such Prevention and Control Law of the People's Republic of China" the "Law of the People's Republic of China on
as the "Environmental Protection Law of the People's Republic of China" the "Law of Prevention and Control of Water Pollution" the "Law of the People's Republic of China on the Prevention and
the People's Republic of China on the Protection of Wildlife" and the "Regulations of Control of Environmental Pollution by Solid Wastes" and other relevant environmental laws and regulations. A
the People's Republic of China on Wild Plants Protection." In our business planning comprehensive pollutant discharge management system has been established to strictly control emissions during
project design and implementation we adhere to scientific assessments of the natural operations and minimize their negative environmental impact. For major pollutants such as wastewater waste
environment and strive to minimize the impact on habitats of plants and animals during gas solid waste and noise our manufacturing subsidiaries have formulated pollutant discharge management
construction and operations through measures such as zonal protection ecological systems including the "Wastewater Management Policy" "Solid Waste Management Policy" and the "Noise
isolation and preservation of native vegetation. For areas that may be affected we Management Policy." We also set annual environmental targets to reduce emissions and mitigate environmental
actively carry out ecological compensation vegetation restoration and soil and water pollution.conservation efforts gradually restoring or enhancing local biodiversity aiming to
achieve coordinated progress between business development and ecological balance. 75% *of our manufacturing subsidiaries have obtained ISO 14001 environmental management system
certification.We vigorously organize and participate in various environmental-themed public
welfare activities. By conducting environmental knowledge campaigns tree planting
and energy conservation and emission reduction initiatives we enhance employees'
environmental awareness and encourage more members of the public to engage
in environmental protection efforts striving to promote and practice the concept of
green living.Tree-Planting Activity "All-in for Green" Environmental Initiative
*Xindeco IoT Malaysia was established in December 2024 and is currently in the process of applying for ISO 14001 Environmental Management System certification.
45 46Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Water Resources Utilization Pollutant Discharge
We strictly comply with the "Water Law of the People's Republic of China" the "Law We strictly comply with the "Environmental Protection Law of the
of the People's Republic of China on Prevention and Control of Water Pollution" and People's Republic of China" the "Law of the People's Republic of
other relevant laws and regulations and conscientiously implement national water China on Prevention and Control of Water Pollution" the "Atmospheric
resource management policies. A sound water resource management system has Pollution Prevention and Control Law of the People's Republic of China"
been established and continuously improved to promote the rational allocation and the "Soil Pollution Prevention and Control Law of the People's Republic
efficient use of water resources. In the course of production and operation we adhere of China" and the "Law of the People's Republic of China on the
to the principle of water conservation optimize water use structures promote the use Prevention and Control of Noise Pollution." We regard environmental
of water-saving equipment and efficient processes and reduce water consumption per protection as a key aspect of high-quality development. By standardizing
unit. We also strictly follow wastewater treatment and discharge regulations by building pollutant discharge management and practicing green operation
high-standard wastewater treatment facilities to ensure stable and compliant discharge principles we strive to minimize the negative environmental impact of
minimizing impact on surrounding water environments. A dynamic monitoring our business activities and achieve sustainable growth.mechanism has been put in place with regular inspections of water supply systems
and timely maintenance to detect and repair leaks continuously improving water use
efficiency.We place great importance on water conservation awareness and the implementation
of management responsibilities. Regular training and promotional activities are carried
out to enhance employees' awareness of water conservation and water resource
management requirements are integrated into all aspects of our business operations. Wastewater Discharge Management
Strict water-saving measures are enforced across both office and production sites with
a strong focus on managing non-production water use. We actively promote reclaimed
water reuse and recycling models leveraging digital monitoring tools to implement Wastewater generated from our operations primarily comes from the electronics technology and automobile dealership segments
dynamic management and achieve refined control of water resources. Through while other business segments involve only domestic water usage and discharge.continuous optimization of water resource utilization we effectively improve water use
efficiency and minimize our impact on the aquatic environment.In the
electronics we have established the "Wastewater Management Regulations" to ensure effective treatment of
Routine Water Dispenser technology
Leak Check wastewater aiming to achieve compliant discharge and minimize its negative environmental impact.segment
· For oil-containing wastewater from air compressors we use oil-filtering devices to treat the discharge
Water Conservation Reminders effectively. The filtered wastewater is then discharged into the sewer system and the filter pads are
replaced quarterly to maintain performance.· For other types of wastewater it is collected and directed into the domestic sewage system where it is first
treated through septic tanks before being discharged into the municipal sewer network.· Routine inspections are conducted on the domestic sewage pipelines and septic tanks to monitor
parameters such as pH value color and clarity. If abnormalities are detected in the drainage system or
Publicity on Water septic tanks we take prompt corrective actions and record the findings in the "Domestic Sewage System
Resources Protection
Inspection and Maintenance Log" to ensure timely resolution.
47 48Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Wastewater generated during business operations primarily includes car
In the In the
automobile wash wastewater and domestic sewage. Major pollutants include anionic automobile Exhaust gases generated during operations mainly include benzene toluene xylene and non-methane
dealership surfactants ammonia nitrogen total nitrogen total phosphorus and In 2024 we engaged a dealership hydrocarbons from spray booth emissions. We have implemented the following measures to reduce emissions:
segment petroleum substances. We have installed a three-stage sedimentation third-party agency to segment
system to filter wastewater from car wash areas and workshops. This system conduct wastewater
removes suspended solids from the water and the treated compliant testing and all results
confirmed that the · Spray booths remain closed during baking and paint mixing
supernatant is discharged. Sediment from the bottom of the tanks is
discharged water met operations and VOC photo-oxidation purification equipment is used
cleaned regularly to maintain treatment efficiency. regulatory standards.to minimize exhaust emissions.· Activated carbon adsorption cotton and other filtration components
in the equipment are regularly replaced to maintain treatment
efficiency. For paint shop emissions VOC treatment systems that
meet regulatory standards have been installed. Airborne spray fumes
are directed into XHTML VOC purification units through a ventilation
Air Emissions Management system. These units apply dry filtration technology to remove
paint sludge and capture fine particles such as paint mist toluene
and xylene that were not filtered out earlier effectively reducing
The air emissions generated from our operations mainly come from the electronics technology and automobile dealership segments. particulate pollution. The remaining organic exhaust is then directed
In 2024 third-party testing confirmed that all air emissions met regulatory standards. into an activated carbon adsorption zone where the carbon captures
and neutralizes volatile organic compounds (VOCs) completing
the processes of gas-dust adsorption capture and odor removal.This treatment achieves a removal efficiency of over 80% for large- Exhaust Gas Treatment Facilities
In the molecule VOCs. The purified gas is finally discharged through a high-
electronics Air emissions generated during operations primarily include non-methane hydrocarbons tin and its compounds. level chimney via an exhaust fan ensuring compliance with emission
technology To manage emissions from processes such as cleaning potting mixing soldering and baking we have standards and effectively mitigating air pollution.segment
established the "Air Emissions Management Regulations" ensuring effective treatment and compliance with
emission standards. Key measures include:
· Organic volatile gases from die baking adhesive mixing and other processes are collected through piping
systems and discharged from the rooftop.· Tin- and lead-containing fumes generated during soldering are captured via sealed collection pipelines and
treated through an activated carbon system before being discharged upon meeting standards.· Operators are required to seal volatile chemicals with lids and use low-volatility low-hazard materials to
control VOC emissions at the source and minimize environmental impact.· Regular maintenance and inspection of company vehicles are conducted with annual inspections performed
as scheduled to ensure optimal operation and reduce pollution.· Routine maintenance and inspections are carried out based on the operating manual for the exhaust
treatment system. In the event of abnormal emissions emergency measures are taken promptly.Additionally third-party monitoring of air emissions is conducted annually to ensure compliance with
environmental regulations.Exhaust Gas Treatment Facilities
49 50Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Waste Disposal The general waste mainly includes paper envelopes document bags disposable items food packaging In the supply discarded furniture plant trimmings and fallen leaves as well as construction waste. The following
chain sector
measures are taken for management:
We strictly adhere to relevant policies and regulations for waste disposal such as the
"Environmental Protection Law of the People's Republic of China" the "Law of the People's
Republic of China on the Prevention and Control of Environmental Pollution by Solid · Implement digital office practices to reduce paper usage such as using electronic documents and
Wastes" and the "Regulations on the Transfer of Hazardous Waste." We have established e-signatures.a comprehensive waste disposal system formulated waste management procedures and · Reduce printing and copying needs and for necessary printouts use double-sided printing.strictly control the discharge of various types of waste during operations. Additionally we · Prioritize the purchase of environmentally friendly materials and recyclable products such as
implement waste reduction measures to minimize the negative impact of waste on the biodegradable stationery and reusable office supplies.·
environment. Choose products with minimal packaging to reduce packaging waste.· Upgrade office equipment and maintain office areas to extend the lifespan and efficiency of equipment
reducing waste caused by damage or aging.· Set up different types of trash bins in office areas to classify and collect waste ensuring proper disposal
of various waste types.· Raise employees' awareness and skills in waste classification through training and promotional posters
ensuring they can accurately sort waste for disposal.General Waste
In our operations across various business segments the general waste generated mainly includes waste paper waste document
bags and discarded parts. For different types of general waste we adhere to the principles of waste reduction and reuse aiming to
minimize the negative impact on the environment.We adhere to the principles of "reduction generalization and recycling " and have established a waste
In the materials management team to handle packaging waste and scraps to reduce material loss and costs
electronics
technology further standardizing the management of waste generated during production operations. For low-value
segment recyclable materials such as used cardboard we entrust waste buyers to handle the recycling. For
waste generated during renovation or maintenance the corresponding project company’s responsible Waste Classification Training
department is in charge of disposal. For large recyclable waste materials such as brackets silver paste
and other temporary waste our team has compiled a list of waste material buyers and conducts public In the We have established policies such as the "Management Regulations on Productional and Operational Waste"
automobile
bidding for sales. Additionally we have formed a "Waste Classification Management Steering Group" and dealership and the "Management Measures for Waste Materials (Trial)" to regulate the management of waste generated
hold monthly coordination meetings to mobilize educate supervise and report on waste classification segment from our production and operations. The general waste generated during our business operations includes
efforts. In 2024 we held 5 waste classification training sessions and 4 inspections. vehicle maintenance waste and waste paper which are managed through the following measures:
Held And · For household waste a waste classification room is set up to separately store kitchen waste other waste
5 4 and recyclable waste which are then handled or disposed of by qualified units.waste classification training sessions inspections · A designated storage area for general waste is set up following the principles of classification and zoning
with implementation of 5S management.· Recyclable general waste is entrusted to a recycling partner for collection while non-recyclable waste is
stored in the designated storage area and periodically transferred by a third-party agency.
51 52Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Hazardous Waste In the
automobile We have established the "Management System for Hazardous Waste Pollution" "Responsibility System for
dealership Prevention of Hazardous Waste Pollution" and "Hazardous Waste Warehouse Management System." The
segment
The hazardous waste generated during our operations primarily includes waste lead-acid batteries waste thinners and waste alcohol hazardous waste generated during our business operations includes waste mineral oils waste lead-acid
produced from the electronics technology and automobile dealership segments. For hazardous waste management we implement batteries waste thinners (solvents and diluents used in the spray painting industry) and waste paint sludge.classification and storage in designated areas set up identification labels and informational cards and entrust qualified third-party
organizations for disposal. Additionally we conduct hazardous waste disposal training to raise employees' environmental awareness
and prevent environmental pollution caused by improper hazardous waste management. Our main management measures for hazardous waste include:
· Continuously improve the emergency management system and ensure the integrity of emergency
facilities and equipment to enable prompt and effective handling of environmental emergencies.In the The hazardous waste generated during business operations mainly includes waste alcohol and waste
electronics · Use water-based paints instead of oil-based paints for spray painting materials promoting the use of
technology cleaning agents. We have established internal policies such as the "Hazardous Materials Management environmentally friendly materials.segment System" "Hazardous Waste Warehouse Management System" "Management System for Hazardous Waste · Assign a dedicated person to manage hazardous waste ensuring that hazardous waste is strictly
Pollution" "Environmental Emergency Plan for Hazardous Waste Accidents" and "Management of Dedicated classified based on its characteristics and transported in designated containers and bags.Monitoring System for Etching Room Hazardous Chemicals" to regulate the management of hazardous waste · Collaborate with certified units recognized by the provincial Environmental Protection Bureau of the
emissions. Additionally we have set up a "Chemical Inspection Record Form" to monitor activities related to operating location to recycle and treat reusable hazardous waste aiming to reduce the amount of
the procurement storage usage disposal and emergency measures of hazardous materials. hazardous waste generated.· Strengthen training on the collection classification and storage of hazardous waste during production
For chemical waste liquids: strictly adhering to the classification requirements enhancing on-site cleaning management and
increasing supervision to ensure standardized management of hazardous waste storage areas.· Classified collection and storage are required with clear labeling of types.· Leak-proof and impermeable facilities are installed in the storage area of chemical waste liquid and
appropriate firefighting equipment is provided to ensure safety and environmental protection.· Once a certain amount of waste liquid is collected it is legally transferred to a qualified third party for
disposal.· Recycle chemical containers whenever possible. Containers that cannot be recycled or reused are stored
in a centralized manner and a qualified third party is appointed for disposal.Hazardous Waste Storage Facility
On-Site Hazardous Waste Cleanup and Management Training
53 54Xindeco 2024 Sustainability Report Climate Response Energy Utilization Ecosystem and Biodiversity Protection Environmental Compliance Management Water Resources Utilization Pollutant Discharge Waste Disposal Circular Economy Environment
Circular Economy Executing Sustainable Actions
Our subsidiary Xindeco Tongbao Automobile practices the concept of green circular and sustainable development advocates a
culture of sustainability and actively engages in public welfare activities for the recycling of used items. The company is committed
Developing a circular economy is a key pathway for driving green transformation and achieving the carbon peaking and
to promoting the concept of the circular economy to the consumer end and working with our partners to promote resource recycling.carbon neutrality goals. We actively respond to national strategies embrace the new development paradigm and deeply
integrate the principles of circular economy into our corporate development strategy. Through measures such as innovating
resource utilization models optimizing production processes and advocating for resource recycling we are comprehensively
advancing resource conservation and recycling to contribute to sustainable development.Resource Conservation and Recycling
· Promote paperless office and digital management reduce the
Recycling of Steel Scrap Resources use of paper orders and use electronic nameplates instead of
paper flyers.· Replace the seat covers floor mats and steering wheel covers
Xindeco Supply Chain Steel Center follows a comprehensive industry chain development used in maintenance reception with reusable and biodegradable
strategy and actively explores both domestic and international markets. In 2024 our scrap materials.steel raw material supply reached 30900 tons. · Utilize green building materials green furniture and green
Scrap steel raw material supply reached workwear while implementing waste sorting and recycling high-
We have formed strategic alliances with leading industry players optimizing resources and pressure batteries to achieve material recovery and reuse. Green Furniture in Xindeco Tongbao Automobile Store
tons
sharing with them to jointly pursue development and empower the whole industry. This has 30900
resulted in a new pattern of complementary advantages shared risks and collaborative win-
win outcomes. We continue to advance our self-managed warehouse projects providing
customers with efficient and integrated logistics services accelerating the extension of
the industry chain to the physical end. By actively integrating into the country's new "dual
circulation" development pattern we have established an overseas office in Malaysia
to assist in the reuse of local steel scrap resources providing channel support for local
sustainable development and further helping Belt and Road countries enhance the breadth
and convenience of trade connectivity. Our Malaysia office works closely with local steel
enterprises primarily engaging in the supply of steel scrap materials and the sale of steel
billet products committed to promoting the green development of the steel supply chain.
55 56SOCIETY
⊙ 2024 Management Targets for Social Matters
·The proportion of local employees hired annually is not less than 60% (within the province)
·Continue investing in innovation and R&D with no fewer than 30 new intellectual property rights
granted during the year and an R&D investment of no less than 40000 thousand RMB
·No intellectual property infringement incidents during the year
·Further improve supply chain risk management by strengthening supplier audits and evaluations
to effectively mitigate supply chain risks
·No incidents of overdue payments to small and medium-sized enterprises during the year
·No major liability incidents related to product or service safety and quality during the year
·No information security incidents or customer information breaches during the year
·No penalties received due to violations of labor laws or suspected employment discrimination
during the year
·No work safety accidents occurred during the year including catastrophic major or general
incidentsXindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
We have continued to promote the "purchase instead of
Rural Revitalization and donation"consumption-based assistance mechanism
leveraging order-based agriculture to activate local resource
Social Contributions endowments and drive local industrial development. Guided
by the "one village one product"strategy we supported
Jinbing Village in developing a series of "Millennia-old
We uphold the core values of "Leadership Responsibilities Hardworking
Jinbing"specialty agricultural product packages. This initiative
and Partnership" and actively promote the construction of harmonious
further strengthened the connection between production and
and mutually beneficial community relationships with the regions
sales directly helping farmers increase their income while
we operate in. Leveraging our industry and resource advantages we
improving standardization and branding on the production
contribute to rural revitalization and enhance urban and community
side. It also contributed to upgrading the local agricultural
well-being through industr y assistance educational support
industry chain and injecting fresh momentum into rural
public welfare investments and other initiatives fulfilling the social
industrial revitalization. In 2024 we purchased RMB 170000
responsibility and commitment of state-owned enterprises.worth of specialty agricultural products from Jinbing Village
RMB 38000 worth of Jianning yellow peaches and carried out
poverty alleviation purchases in Ningxia Xinjiang and Tibet
with a total procurement amount reaching RMB 580000.Rural Revitalization Rural Revitalization and Consumption-based Assistance
Purchased specialty agricultural Carried out poverty alleviation purchases in Ningxia Xinjiang and Tibet with a total
Prosperity through Coordinated Production and Sales products from Jinbing Village procurement amount reaching
Benefiting People's Livelihoods Across Vast Fields 170000RMB 580000RMB
We actively respond to China's rural
revitalization strategy by establishing
a targeted assistance partnership with The Education Flourished Far and Wide Nurturing
Jinbing Village in Xiang'an District
Xiamen. We assist the village in the Pillars of Future Might
tapping into its potential for ecological
agriculture development revitalizing Since August 1999 we have established the "Hand-in-Hand" charity
and integrating various resources assistance project with the Bayi Hope Primary School in Shiren Village
and continuously enhancing its self- Changting County Fujian Province. By 2024 the project has been running
sustaining capabilities. We have for 25 years. We have combined corporate funding to support the school
dispatched personnel to provide with one-on-one assistance from employees to help students effectively
on-site support and through field addressing the practical needs of underprivileged students.research and in-depth discussions
we collaborate with stakeholders to In 2024 we organized spring and autumn educational assistance activities
The company's village-based cadre together with the work team went to the fields to gain a clear understanding
explore feasible assistance measures of the village's situation and conditions raising a total of 44000 RMB for scholarships. By the end of 2024 we had
helping the village's collective economy assisted 1386 students igniting the flames of education and laying a solid
achieve stable and sustainable income. foundation for talent development in rural revitalization.Raised a total of Had assisted
44000RMB 1386students The 2024 "Hand-in-Hand" Charity Assistance Project
for scholarships
59 60Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Social Contributions Good Deeds Bring Care Promoting Community
Well-being in Public Service
Fostering Harmony Across the World
Cultivating Unity Within Communities We use public welfare as a bond integrating concerns for people's livelihoods into our With a total of
actions. Through diverse initiatives such as educational support healthcare accessibility and 743volunteer participants
On the basis of respecting and protecting the local community's cultural traditions and ecological environmental improvement we have created a warm and inclusive community network. The proportion of local
environment we prioritize offering commercial opportunities such as product and service procurement employees hired by the We continuously organize various volunteer services and public welfare activities promoting
company was
technical support cooperation and more to local businesses promoting economic development community involvement improving the community environment and enhancing residents' Amounting to
and improving the community's living standards. We have established an open and proactive 64.28% quality of life while fostering more harmonious community relationships. In 2024 we organized 65 hours
communication mechanism to ensure timely understanding of community needs receive community volunteer service activities with a total of 743 volunteer participants amounting to 1135 hours. 1135
feedback and carry out targeted public welfare activities. This helps identify and eliminate any adverse
impacts of our business activities on the community effectively integrating various resources within
the community and building an equal respectful harmonious and mutually beneficial community
relationship. In 2024 the proportion of local employees hired by the company was 64.28%.Community
Volunteer
Service
In 2024 we focused on market demand to expand our overseas business using Malaysia as a strategic hub to deeply develop the Activities
local market build overseas production bases and establish a global marketing network driving our international development.Xindeco IoT Malaysia plans to build six Muhlbauer binding production lines and two Muhlbauer composite production lines.Adhering to the principle of shared development between businesses and society we aim to promote local economic growth while
creating more job opportunities for local residents."Clean Homes
and Create
Civilization"
Civilized Practice
Activity
"Happy Children's
Day · Fun Carnival"
The Grand Opening Ceremony of Xindeco IoT Malaysia Themed Event
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HighlightXindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
"Lei Feng Learning Month" Campaign "Braiding Dreams with Bamboo Crafting a Heartfelt Journey for Children" Public
Welfare Volunteer Activity
Each of our business divisions has taken on service projects We in collaboration with the Fujian Xiamen Xianhou Library organized the "Braiding Dreams with Bamboo Crafting a Heartfelt
including charity assistance caring for minors vehicle diagnostic Journey for Children" themed activity. Volunteers guided children from the urban villages in learning bamboo weaving
testing and free second-hand car evaluations charitable visits techniques and experiencing traditional craftsmanship. This event marks the fourth consecutive year that we have partnered
youth science popularization education sports activities and more. with the library to enrich the extracurricular life of children in the urban villages and to pass on intangible cultural heritage.At the event we combined our core business to provide community
residents with consultation services on vehicle annual inspections
driving license replacements insurance renewals vehicle trade-ins
vehicle evaluations and more. We also gave on-site presentations
on car selection and safety precautions promoting civilized travel.
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HighlightXindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Innovation-driven In the digital In 2024 Xindeco Intelligent IoT established an R&D Technology Center. Xindeco Intelligent IoT in collaboration
intelligence
technology with Shandong Xindeco IoT revised technical management standards project management procedures and other Development segment regulatory systems. They adopted a function-based R&D management model dividing functions according to
professional fields with clear responsibilities. This approach ensures strict control over the entire lifecycle of R&D
projects including initiation planning execution monitoring and closure. It standardizes the development of R&D
Innovation is a key driving force for promoting sustainable activities enhances work efficiency and reduces the risks associated with R&D activities.development and enhancing competitiveness. With the mission of
"Leading globally competitive industries Creating a better life" we
invest in research and development closely focusing on providing
In the
services that support the innovative development of the real electronics
technology Xindeco Electronic Information Technology adopts the IPD (Integrated Product Development) systematic R&D economy and assist in its transformation and upgrading.segment philosophy methods and model. Using a project-based approach the company establishes PDT (Product
Development Team) for R&D projects forming cross-departmental project teams to ensure that project execution
aligns with development plan requirements. The company has an R&D Management Department and its
subsidiaries Xindeco IoT and Xindeco Optoelectronics have corresponding technical centers or departments. We
actively encourage R&D innovation and have formulated and continuously improved the "Technology Advancement
Technological Innovation Reward Management Measures." The company has established three major categories of technology advancement
awards clearly defining reward methods to inspire the enthusiasm and creativity of technical staff. This encourages
them to actively engage in R&D innovation enhancing the company's technological innovation capabilities. We also
focus on promoting the industrialization and marketization of R&D innovations to improve the company's market
We fully leverage our resources channels and core technological advantages continuously invest in research and development promote
competitiveness. In 2024 Xindeco IoT established the EAS+RFID Special Project Working Group while Xindeco
innovation in product technology and service models achieve specialized business development and drive high-quality growth.Optoelectronics set up an R&D Innovation Group. Both entities continue to invest in R&D in specific fields and niche
products improving product competitiveness and added value.R&D and Innovation Management
In the supply
We adhere to the integration of research and development with practical business chain segment
operations. By systematically improving R&D management iterating and upgrading in 2024 we established the R&D departments for the Ferrous Metals Division and the Non-ferrous Metals Division.regular market research and specialized studies continuously developing new products The Ferrous Metals R&D Department regularly collaborates with relevant business departments to discuss market
and technologies and organizing diverse communication and discussion forums we trends gather market research insights and develop strategies to respond to market conditions.support the company's transformation upgrading and cost reduction while improving
efficiency.In 2024 to further seize development opportunities strengthen industry research
and development management and effectively enhance business decision-making
and development quality we established a dedicated R&D leadership team. The team The Company Organized Training Session on "Governance
Transformation and Corporate Development of Large- In the
oversees three working groups: The Electronics Technology Business R&D Group the Scale Conglomerates" automobile Xindeco ITG Automobile Group focuses on industry development emerging industrial chains and
Black Materials Business R&D Group and the Non-ferrous Materials Business R&D Group. dealership internationalization. It has established a dedicated R&D team to define R&D topics related to the automotive
The R&D leadership team holds quarterly meetings while each working group convenes segment industry.biweekly meetings. Additionally a monthly industry news newsletter is published and
a specialized research report is completed every quarter. We also organize internal
and external collaborative sharing and exchange sessions on an ad-hoc basis. We have
established an R&D collaboration and communication mechanism actively organizing In 2024 we invested a total of 45679.46 thousand RMB in R&D which accounted for 0.1% of our main business revenue. As of the
relevant employees to participate in various internal and external training sessions
end of the reporting period we had a total of 79 R&D personnel making up 1.98 % of our total workforce.forums and other activities where they can share and discuss technical standards R&D
experiences and more. We have also built strong communication channels with external
organizations to foster exchanges and interactions within the industry. In 2024 we focused Invested a total of which accounted for
Xiamen Xindeco IoT Participated in the 22nd International
on four major business segments including the Internet of Things bulk commodity Internet of Things Exhibition %
supply chains and the upstream and downstream automotive industry participating in 45679.5 0.1
approximately 84 events and organizing around 27 activities. thousand RMB in R&D of our main business revenue
65 66Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
R&D and Innovation Achievements In the
automobile Our digital platform covers the entire business chain of 4S stores including potential customer
dealership management vehicle sales after-sales service management used car management parts procurement
segment financial management customer service and marketing. This enables four key integrations: integrated
In 2024 we continued to focus on various business segments producing 134 industry research reports primarily covering macroeconomics group control integrated business operations integrated finance tax and business operations
and policy analysis the big IoT industry and LED industry supply chain bulk commodity research and the upstream and downstream and integrated online and offline management. The digital platform has improved overall business
automotive industry chain. We also maintained our commitment to R&D with 75 new product development projects initiated and 21 new collaboration and information exchange enhancing operational management. By applying various new
patents granted. Additionally we received multiple honors and awards in fields such as data platforms smart applications IoT technology digital and intelligent technologies we have automated and optimized multiple business functions. At
R&D intelligent system integration and LED packaging and lighting product development. the same time we have actively expanded into the smart marketing field through the development of
modules such as customer service used car management CRM and mini-programs. This has significantly
improved efficiency reduced costs and enhanced quality leading to better results in both cost reduction
and operational efficiency.In the digital
intelligence
technology We continued to increase our R&D investment in areas such as big data IoT technology smart
segment warehousing and military-civil integration. A total of 17 new R&D projects were initiated and we were In 2024 we received the following major awards in
approved for the "Jinan Engineering Research Center-Supply Chain Intelligent Warehousing IoT Platform." technological innovation:
We also completed the CSMM and DCMM assessments. In 2024 the Digital Intelligence Technology
segment was granted 1 new authorized invention patent. Xiamen Xindeco Ltd.¤ The "IT Demand Performance Improvement" project was awarded the Award of Excellence by ISPI
In the ¤ The "Xindeco Supply Chain Intelligent Warehousing System" was selected as one of the "Outstanding Digitalization Cases of the Supply Chain in 2023" by the Xiamen Modern Supply Chain Federation
electronics
technology We possess the core capabilities for independently developing and manufacturing RFID electronic tags ¤ Xindeco's "Big Data Intelligent Analysis Platform" was awarded the "Big Data Innovation Product" award by DIIRC
segment readers and the associated software and hardware as well as providing personalized complete system
integration solutions. Currently Xindeco IoT's RFID electronic tag production capacity ranks among Xiamen Xindeco IoT Technology Co. Ltd.the leaders in the industry and can simultaneously meet the product demands of multiple global-scale
customers. We are a leading brand in providing overall RFID solutions for the domestic footwear and ¤ Recognized as one of the "Top 100 IoT Enterprises in China 2023" by the China Internet of Things Industry Alliance Shenzhen Internet of Things Industry Association and
Ulinkmedia
apparel retail industry. In 2024 the Electronics Technology segment continued to invest in IoT technology
Awarded the title of "Passive IoT Innovation Demonstration Enterprises" by the AIoT Technology and Industry Association
development LED packaging and lighting product R&D with a total of 79 projects initiated and 20 new ¤
patents granted. ¤ Awarded the "SSCL APAC 2024 AWARDS – Best Logistics Innovation" by the Ningbo China Institute for Supply Chain Innovation CSCMP and TAPA APAC
¤ The "Tea Management System Project of a Tea Group in Xiamen Fujian" was selected as a "2023 Benchmark Case in China's IoT Industry" by the China Internet of Things
Industry Alliance Shenzhen Internet of Things Industry Association and Ulinkmedia
¤ The "Ultra-thin Single-layer Liquid- and Metal-resistant Tag" won the "2024 22nd IOTE Gold Award for Innovative Products" jointly awarded by the Shenzhen Internet of
Things Industry Association and the IOTE Organizing Committee
In the supply We launched the self-managed smart warehouse system a monitoring and management platform ¤ The "Implantable Linear Tag" was awarded the "2024 Xiamen Excellent IoT Product and Application Solution" by XIOTIA
chain segment
developed for logistics and warehouse risk control scenarios. By integrating intelligent cameras barrier
gates weighing scales electronic cranes AI servers and other technologies we utilized IoT big data and Xiamen Xindeco Optoelectronics Co. Ltd.AI to connect both hardware and software. This system allows for automatic data collection and visual
monitoring of vehicles goods and personnel enabling real-time cargo identification location tracking ¤ Awarded the title of "2024 Hangjia Aurora Award – Influential Supply Chain Enterprise of the Year in RGB Packaging (Discrete Devices)" by Mini&Micro LED Industry
and risk alerts. This ensures the authenticity security and reliability of physical goods transfer data Research Center
while optimizing costs and improving efficiency. In 2024 the Black Metal Division focused on risk control ¤ The "LED lighting fixture integrating anti-counterfeiting anti-tampering and long-distance on-site identification functions" was awarded the Excellence Award in the 11th
China LED Innovation Award by SLDA
and quantitative analysis. Using Xindeco Hongda Warehouse as a pilot project we upgraded the smart
warehouse system adding automatic weighing and alert functions. Real-time data comparisons allow for ¤ The "Top 2727 Lens Technology Project" won the "Hangjia Aurora Award – 2024 Outstanding Product Award" as evaluated by Mini&Micro LED Industry Research Center
immediate action in addressing anomalies effectively resolving conflicts between business efficiency risk ¤ The "Top 2020 DCI Product" won the "Outstanding Product Award" at ISLE 2024
control personnel requirements and business transformation. Additionally the Xindeco Cloud Business ¤ Awarded the title of "Xindeco LED Advanced Packaging and Application Innovation Center" by the Xiamen Science and Technology Bureau
platform promotes collaboration with upstream and downstream partners forming an integrated supply
chain ecosystem. By evaluating and identifying low-efficiency business scenarios we facilitated online Xiamen Xindeco ITG Automobile Group Co. Ltd.collaboration with partners enhancing daily operational efficiency for customers and self-managed
warehouses. ¤ The "Smart Operation and Service Digital Platform" was selected by DIIRC as an "Outstanding Digitalization Case in the Automotive Industry."
67 68Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Intellectual Property Rights Protection Suppliers and Customers
We adhere to relevant laws and regulations such as the "Patent Law of the People's Republic Innovation is a key driver of sustainable development and enhanced competitiveness.of China" the "Copyright Law of the People's Republic of China" and the "Trademark In response to the national strategy of developing "new quality productive forces"
Law of the People's Republic of China" to protect intellectual property rights including we remain committed to our mission of "leading globally competitive industries
patents copyrights and trademarks. We have established the "Trademark and Brand creating a better life." By investing in R&D and innovation we focus on serving the
Name Management Measures" which clearly define procedures for trademark registration innovative development of the real economy and supporting its transformation
modification renewal transfer licensing and protection thereby strengthening the and upgrading. We actively cultivate long-term stable and honest partnerships
management of trademarks and brand names. In 2024 we obtained 35 copyright registrations with suppliers and uphold the principles of responsible sourcing. Together with our
and 21 patents. As of the end of the reporting period we hold a total of 131 registered partners along the industrial value chain we are dedicated to delivering outstanding
copyrights 235 authorized patents and 135 registered trademarks with no intellectual products and services to our customers. At the same time we strive to minimize the
property infringement incidents occurring. negative impact of the industrial chain on the environment and on employee health
and safety enhance supply chain resilience and security and advance the sustainable
development of the supply chain.Obtained Patents
35copyright registrations 21in total
As of the end of the reporting period we hold a total of Authorized patents
131registered copyrights 235in total Responsible Sourcing
All of our business operations are conducted in strict compliance with applicable domestic laws and regulations as well as recognized
international standards and initiatives. Based on this foundation we extend our commitment to human rights protection throughout the
entire value chain including our business partners. We advocate for a cooperative environment that is honest transparent equitable and
respectful while fostering long-term stable relationships. We encourage each of our business segments to incorporate environmental
and social responsibility into partner evaluation criteria and we rigorously implement the principles of green and responsible sourcing.By strengthening the evaluation mechanisms for supplier sustainability performance we prioritize partnerships with suppliers that
In the digital demonstrate excellence in sustainable development. Our goal is to provide customers with high-quality responsible and environmentally
intelligence In 2024 Shandong Xindeco IoT obtained the Intellectual Property Standardization Management System
technology and socially friendly products and services.segment Certification and continued to strengthen the development of its intellectual property management
system.In digital
intelligence We adhere to the principle of responsible sourcing and promote integrity compliance and sustainability
technology throughout the supply chain. We require suppliers to sign the "Integrity Commitment Letter" and the
segment "Confidentiality Agreement" and communicate our business ethics policies to ensure a fair and just cooperation
Xindeco Electronic Information Technology places great importance on intellectual property protection. environment. At the same time we encourage suppliers to continuously improve in areas such as environmental In the
Electronics The R&D Management Department is responsible for intellectual property management functions and protection labor rights and occupational health and safety working together with upstream and downstream
Technology has developed the "R&D Project Management Measures" to regulate the management and confidentiality partners to fulfill shared social responsibilities.segment of R&D projects. The company strictly enforces confidentiality management throughout the R&D process.By strengthening internal centralized management and actively collaborating with external organizations We have strengthened our supply chain management by establishing transparent communication and feedback
the company ensures timely intellectual property applications registrations and dynamic tracking mechanisms for suppliers. Suppliers are encouraged to report any misconduct involving procurement or related
continuously improving the management of the entire R&D and intellectual property process and personnel directly to our General Administration Department or the Operations Compliance Department. We
enhancing intellectual property protection. are committed to working hand-in-hand with our suppliers to enhance both the stability and compliance of the
supply chain while jointly advancing the practice of responsible sourcing.
69 70Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
In electronics We have introduced the "Supplier Management Measures" and the "Supplier Evaluation and Monitoring Xindeco Optoelectronics Supplier ESG Performance Management
technology Measures" to standardize the procurement process. We require suppliers to sign integrity agreements
segment
uphold business ethics and strictly oppose all forms of corruption bribery and unethical business ·For temporary contractors we issue a "Supplier On-Site Operation Notice" to inform them of
practices. Through this collaboration we aim to build a sustainable supply chain management system. ESG Performance Management of On-site environmental protection precautions and supervise their operations.Activities by Service Contractors ·For long-term contractors a "Supplementary Agreement" must be signed and personnel assigned
to on-site work are required to receive training before starting their duties.Supplier Evaluation and Supervision
·For service providers such as vehicle and elevator maintenance companies we sign an
"Environmental Protection Agreement" that stipulates: during maintenance clean cloths must
We incorporate supplier performance in areas such as service capability product quality be used to thoroughly absorb and remove oil residues from elevator cabins and vehicle surfaces to
environmental protection and occupational health into our assessment standards. Evaluation is minimize the discharge of oil substances into water. Wastewater must be treated before discharge
conducted through both desk review and on-site audits. Based on these assessments we develop into sewage systems and all hazardous waste generated during maintenance must be properly and
supplier evaluation plans and carry out quarterly and annual reviews. The list of qualified suppliers ESG Performance Management of Other legally disposed of.is updated annually and disqualified suppliers are removed. For those who do not meet evaluation Service Providers ·For construction contractors we sign an "Environmental Protection Agreement" requiring
standards we initiate corrective action plans and provide support to help them meet our basic prevention and control of pollution during construction including noise dust wastewater and
management requirements and eliminate potential risks. construction waste.·For waste recyclers and hazardous chemical transportation contractors we collect and verify
documentation to ensure legal compliance.Environmental Protection in the Supply Chain
Since 2019 we have distributed the "Environmental Protection Initiative" to our partners assessing We have established the "Procurement Control Procedure" to regulate the full lifecycle management of suppliers from onboarding
their management practices related to greenhouse gas emissions wastewater air pollutants to offboarding. For key material suppliers a qualified sample audit must be completed before they undergo on-site audits. Prior to
noise and hazardous waste. We collect information on existing environmental initiatives and the official commencement of procurement suppliers are required to submit product testing reports for the intended goods. We also
planned improvement measures to help our partners enhance their environmental management conduct comprehensive annual evaluations on product quality delivery stability and timeliness end-to-end sales service capabilities
performance. responsiveness and overall cooperation.New Supplier Admission Audit Process
· Collect information and documentation from suppliers capable of providing manufacturing materials and outsourcing services
Qualification
· Review business licenses employee profiles factory conditions production and testing equipment material sourcing and company
Review certifications etc.Xindeco IoT Supplier Routine Supervision
· Notify suppliers who have passed the initial review to submit samples.Sample
·We verify goods provided by suppliers in accordance with the "Inspection and Test Control Procedure" Review · Conduct sample review and if necessary perform quality and reliability tests
and regularly compile qualification statistics.Product Quality Supervision ·For suppliers whose performance rating falls below 90% we issue verbal warnings. If a supplier's products
fail quality inspection three consecutive times we issue a "Supplier Delivery Exception Feedback Form"
and require corrective actions from the supplier. On-site · Visit key suppliers to conduct on-site inspections of supplier products and quality assurance production equipment and technology
Audit customer support and services environmental protection and control of prohibited substances
·We monitor and regularly assess delivery timeliness.· List suppliers who pass the on-site assessment to the list of "Qualified Suppliers for Select"
·For suppliers who fail to deliver on time we issue a verbal warning and impose penalties as per the
On-time Delivery of Supplier
contract. If late delivery occurs three consecutive times we issue a "Supplier Delivery Exception Feedback Acereditation
Form" and require the supplier to take corrective measures. · Set a minimum three-month probationary period followed by a review process. Suppliers must pass this review to become
"Qualified Suppliers"
71 72Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
In
Green Procurement automobile we have formulated the "Procurement Management Regulations" and established a Procurement Management
dealership
business Leadership Team responsible for overseeing guiding and supervising all procurement projects. At the project
segment or subsidiary level we set up dedicated procurement working groups that are responsible for reviewing
procurement documents conducting special inspections and handling supplier complaints.Our independently developed "paper antenna RFID tags" strictly comply with the FSC Chain of Custody (CoC) certification standards.We are committed to increasing the use and content of FSC-certified materials and implementing the requirements of "FSC- We carry out procurement activities in strict accordance with applicable regulations through methods such as
STD-40-005." We strictly prohibit the procurement of raw materials from the following sources: open bidding invited bidding competitive negotiation inquiry direct procurement and other legally compliant
approaches. Our goal is to build a supply chain that is fair transparent and flexible. In addition to focusing on
partner compliance product pricing and delivery capability we also assess our partners’ performance in
· Forests where · Forests identified · Forests subject · Forests converted · Forests sustainability-related areas such as ecological responsibility human rights protection and occupational health
ownership or as non- to illegal logging from natural containing and safety all of which are incorporated into our supplier admission criteria.usage rights are certified high activities forests to non- genetically
disputed conservation forest or non- modified trees For automotive parts and other supply chain partners we have issued the "Supplier Management Regulations"
value forests plantation use to standardize qualification reviews. We require partners to sign key documents including the "Commitment to
Safe Construction and Compliant Operations" the "Commitment to Honest Cooperation and Fair Competition"
and the "Integrity Agreement." These measures are designed to ensure the fulfillment of responsibilities related
to occupational health and safety business ethics and environmental protection.In supply we operate based on the principles of fairness transparency integrity and compliance. We have established
chain internal systems including the "Logistics Management Regulations for Supply Chain Business" the "Credit
business
segment Management Measures for Supply Chain Business" and the "Detailed Rules for Customer Credit Evaluation Supply Chain Security
Committee" to build a comprehensive customer credit assessment framework.Supplier and Customer Admission Mechanism We remain committed to advancing high-quality development by continuously enhancing the resilience and security of our industrial
We have established a dedicated Credit Evaluation Committee to conduct independent investigations. In addition and supply chains. Through the ongoing improvement of our credit evaluation system and the establishment of a robust risk
to reviewing the business performance and legal risks of counterparties we also include indicators such as assessment mechanism we strive to minimize and eliminate both actual and potential risks ensuring the healthy and sustainable
environmental protection and workplace safety in our assessment criteria. This enables us to evaluate both actual
development of our supply chain.and potential risks across the supply chain. Where necessary we commission third-party credit investigation
agencies to support the evaluation.We have established a dedicated Credit Evaluation Committee responsible for assessing the credit standing of our business partners.The committee provides critical insights to support risk assessment and decision-making processes thereby improving the quality
Ongoing Supplier and Customer Monitoring
and efficiency of our risk management practices. The committee consists of a Chair and several members with participation from the
In accordance with our internal credit management procedures we monitor suppliers and customers through
Risk Control and Compliance Department as well as finance personnel from various business segments. The Chair is responsible for
email communications on-site audits trade fairs and third-party channels. Regular follow-ups and ad hoc
inspections are conducted with at least one full review cycle completed annually. Counterparties that fail to organizing the credit evaluation work and preparing credit assessment reports.meet review standards and show no improvement after remediation are subject to disqualification and removal
from our approved list.Logistics Supplier Oversight
We assess logistics suppliers using basic criteria such as company type credit standing qualifications
transaction history warehouse conditions and overall management capabilities. Additional evaluation
dimensions include quality system certifications customs compliance status industry reputation tax payment
records and digital warehouse management capabilities. Periodic performance assessments are conducted
and a one-strike disqualification rule is applied to issues involving dishonesty safety hazards or other high-risk
factors.
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Customer Credit Evaluation and Management Equal Treatment of SMEs
We strictly comply with national laws regulations and supervisory requirements including the "Anti-Unfair Competition Law of
The business unit initiates the evaluation process by completing the "Customer Information Form" and the People's Republic of China" the "Regulations on Ensuring Payments to Small and Medium-Sized Enterprises" and the "Interim
Document
Collection submitting supporting documents which include third-party credit evaluation reports business registration Regulations on Enterprise Information Disclosure." We fulfill our disclosure obligations in accordance with the law and strictly
information financial statements and more. adhere to contractual terms regarding payment ensuring that all fund disbursements are compliant and stable. We are committed
to fostering fair and equitable trading relationships with SMEs. We continuously work to enhance the transparency of our payment
practices safeguard the legitimate rights and interests of SMEs in accordance with the law and optimize supply chain management.Prior to the credit evaluation the business unit conducts on-site due diligence with joint participation from These efforts contribute to the improvement of the overall business environment.On-Site the Risk Control and Compliance Department. A site visit report is issued focusing on but not limited to the In 2024 we experienced no instances of overdue payments to SMEs.Due
Diligence customer’s business history production and operational capabilities financial risk management and any
major adverse factors.Product and Service Safety and Quality
We adopt the 5C credit evaluation methodology assessing five dimensions—business capacity credit
Evaluation history financial standing operating environment and collateral/insurance—to determine an overall rating. We strictly comply with national laws and regulations such as the "Product Quality Law of the People's Republic of China" the
Criteria
Based on this assessment a credit rating is assigned from AAA (highest) to C (lowest) across nine levels. The "Consumer Rights Protection Law of the People's Republic of China" and the "Advertising Law of the People's Republic of China."
credit rating result also serves as the basis for credit line assessment. In all our business operations we prioritize customer needs and are committed to delivering efficient and professional services to
ensure that each customer receives timely and accurate responses.A "Credit Evaluation Report" is issued presenting the customer’s operational status financial statements
Application of and legal risk indicators. This report serves as a reference for decision-making during risk assessment
Results In digital
committee meetings. intelligence We provide integrated services covering project planning technology
technology development project implementation and operations and maintenance.segment To ensure the quality and safety of procurement and construction activities
we have established a Technology and Quality Committee which oversees
Both the business unit and the Risk Control and Compliance Department continuously monitor the two specialized task forces: the Software Quality Execution Group and
Ongoing customer’s condition. If there is any material adverse change or a request to adjust cooperation terms we the Engineering Quality Execution Group.During project implementation
Monitoring promptly formulate response measures in accordance with relevant policies and may initiate a re-evaluation we adopt a project responsibility system and conduct regular audits on
as needed. construction progress. We strictly follow national regulations by preparing
implementation plans in advance and correcting deviations in real time
to ensure projects are completed on time with high quality and safety
standards. In 2024 we recorded no major liability incidents related to
Periodic We re-evaluate customers who apply for continued credit transactions based on changes in their operations product or service safety and quality nor were there any product recalls.ISO 9001:2015 Quality Management
System Certification of Shandong
Re- Xindeco IoTfinancial status and industry conditions. For customers whose most recent credit evaluation score meets
evaluation
qualification criteria and reflects strong performance the re-evaluation cycle may be extended to two years. We have established a multi-departmental complaint handling mechanism to ensure that customer feedback is
promptly received reasonably addressed and effectively resolved.Shandong Xindeco IoT customer complaints are handled jointly by the General Administration Department the
Operations Compliance Department and the System Integration Department. Upon receiving a complaint the project
On this basis we also implement effective risk mitigation measures. These include encouraging business units to purchase credit
manager from the System Integration Department is responsible for verifying the issue. If it involves product quality
insurance and setting credit transaction limits for individual customers or related parties based on credit exposure assessments. In
the Operations Compliance Department coordinates with the supplier for resolution; if it relates to construction
cases of overdue accounts the business unit must follow the "Operational Risk Reporting and Disposal Management Measures" and quality the System Integration Department takes charge of follow-up actions. In 2024 we received no customer
respond based on the three-tier risk classification system: "Attention" "Warning" and "Response" with corresponding actions taken complaints and successfully achieved our annual service quality goal of 100% customer satisfaction.for each level.
75 76Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
In
electronics Data Security and Customer Privacy
technology We regularly conduct customer satisfaction surveys to gain deep
business
segment insights into customer needs and continuously improve our service
quality and product performance. We collect customer feedback We strictly comply with the "Cybersecurity Law of the People's Republic of China" the "Data Security Law of the People's Republic of
through structured questionnaires covering key areas such as China" the "Personal Information Protection Law of the People's Republic of China" and other relevant regulations. We continuously
product quality after-sales service on-time delivery complaint strengthen our information security management system enhance our security capabilities and build a robust digital defense
handling and return processing. Based on the results of these framework to effectively safeguard company data and protect customer privacy.surveys we promptly develop and implement improvement
measures to enhance the overall customer experience.In automobile
dealership ISO 9001:2015 Quality
business segment Management System Certification Information Security Management
of Xindeco Optoelectronics
We uphold the philosophy of "leading a high-quality automobile lifestyle" and are committed to delivering a
service experience that exceeds expectations for every vehicle buyer. We have established a comprehensive We have established a clearly defined and well-structured information security management framework. Internally we have
customer service process that includes professional car-buying consultation personalized vehicle configuration formulated and continuously improved policies such as the "Technical Management System for Information Security" and the
recommendations transparent pricing policies efficient financial service solutions and full-scale after-sales "Personnel Management System for Information Security." These policies provide clear guidelines on information governance
support with regular maintenance plans.account management cybersecurity monitoring data center management incident reporting and employee awareness and
training. We also incorporate information security performance metrics into the performance evaluation system of relevant
We set monthly performance targets for customer follow-up and our after-sales teams conduct regular
telephone follow-ups to track service quality and proactively address customer concerns. In addition personnel helping to standardize and strengthen security management practices while improving our overall security posture. These
we conduct customer satisfaction surveys to assess our performance across six key service touchpoints: measures ensure the secure and stable operation of our information systems and provide strong protection for data assets. In 2024
appointment booking reception and pre-check waiting experience settlement and vehicle handover service we reported no information security incidents.quality and claims and damage assessment. Based on survey results we promptly adjust our service strategies
and processes to ensure we meet evolving customer expectations and needs.Information Security Management Structure
· Chairman serves as the group leader with key leaders from each segment and the
Network and Information Security leaders responsible for network security serving as members of the group.· Responsible for organizing and leading the construction of company's network and
Work Leading Group
information security coordinating and solving major issues related to the company's
networkand information security.· As an office set up under the leading group it isresponsible for the specific affairs of the
Network and Information leading group.In 2024 Xindeco ITG Automobile Group in partnership with PICC Property and Casualty Insurance jointly established a New Energy
Security Office Organize quarterly network and information security meetings to review the key
Vehicle (NEV) Customer Service Center to offer end-to-end services for NEV owners. The service center is equipped with diagnostic ·
achievements of the quarter and to study and develop the work plan for the next quarter.tools and technical personnel to support damage assessment claims processing body and paintwork routine maintenance
insurance renewal test-drive group purchases vehicle trade-ins battery charging diagnostics and repairs to electric powertrain
components. The center also hosts NEV experience events and customer engagement activities. By collaborating with NEV
manufacturers and insurance companies we aim to develop the NEV aftermarket enhance repair and service capabilities in the
Xiamen area and provide comprehensive maintenance and support services for NEV customers.Digital Management · Responsible for the management maintenance and construction of the company's
Department network and information security and information systems.
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HighlightXindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
In 2024 we continued to implement the working mechanism of our Cybersecurity Leadership Team integrating the planning Information We regularly conduct cybersecurity inspections on endpoints servers and network
deployment and risk assessment of cybersecurity tasks into our core management priorities. We regularly held dedicated Security Inspections equipment to identify potential information security vulnerabilities. Timely corrective
cybersecurity meetings to clarify key goals and assign cybersecurity responsibilities. We also formulated the "2024 Cybersecurity and preventive measures are taken to mitigate threats posed by these vulnerabilities to
Accountability Assessment Plan for Xiamen Xindeco’s Invested Enterprises" which outlines the annual cybersecurity objectives In 2024 our network systems.and key performance indicators for each subsidiary. These include defining the responsible departments and duties for Successfully remediated
cybersecurity information reporting implementing cybersecurity protection measures organizing or participating in emergency 27 In 2024 we leveraged professional security tools to carry out bi-monthly web response drills carrying out cybersecurity monitoring early warning and reporting and conducting cybersecurity education and vulnerability scans and quarterly host security scans. These efforts enabled us to detect
training. We evaluate each invested enterprise through a combination of self-assessment verification on-site inspections and high- and medium-risk vulnerabilities and fix security vulnerabilities promptly. Over the course of the year we successfully
coordinated assessments conducted by functional departments. These evaluations are integrated with special audits and ongoing remediated 27 high- and medium-risk vulnerabilities significantly reducing the
supervision forming a comprehensive performance review system. Through this approach we have established a top-down tiered Conducted specialized cybersecurity likelihood of security incidents caused by system weaknesses. We also conducted three
implementation mechanism for cybersecurity governance where responsibility is enforced at each level. The assessment results are inspections specialized cybersecurity inspections focusing on key areas such as the IoT Data Center
directly linked to the performance evaluations and compensation of responsible personnel and employees. 3times and automotive 4S dealerships. A total of 11 risks were identified and rectified ensuring
that our information security measures were effectively implemented and enforced.Information Security We continuously improve our information security risk management mechanism
Risk Management strengthening risk control through a comprehensive approach that covers pre-incident Information
We have formulated the "Emergency Response Plan for Network and Information
in-process and post-incident phases. We identify monitor prevent and respond Security Emergency Systems" and established a comprehensive emergency response mechanism for
to information security risks and incidents to minimize their occurrence and reduce information security incidents along with a cross-departmental coordination system.potential negative impacts on our business operations. Response This enables us to respond to security incidents in a timely and effective manner helping
to prevent or mitigate potential damage and losses.We have developed a proactive and layered cybersecurity defense system that integrates a variety of network security devices and
software technologies. Coupled with optimized security operations this enables accurate situational awareness and ensures the safe
· We conduct routine monitoring of networks and information systems to ensure timely threat detection and early warning.and stable operation of our systems. In 2024 we focused on enhancing key areas such as threat monitoring email security and major
Significant monitoring findings or any identified information security incidents are promptly reported to the Cybersecurity
operational safeguards to strengthen our cybersecurity defenses: Leadership Team.· Upon detection of a security incident we immediately organize an investigation to identify the root cause determine the
severity level and activate the corresponding emergency response plan. Control measures are then implemented to contain
the situation and eliminate risks.· After the emergency response concludes we form an incident investigation team to conduct a thorough analysis and
· At the Xiang’an Industrial Park Data Center we deployed network probes to collect and analyze real-time traffic across summary. Based on the findings we refine our emergency response plans and address any underlying vulnerabilities.the park. This allowed us to accurately detect and issue early warnings for abnormal traffic behavior malicious activities and · We regularly conduct emergency drills to test and improve the effectiveness of our response procedures enhancing our
cyberattacks enabling rapid response and closed-loop risk mitigation. overall incident response capabilities.·We enhanced our email security system by launching an email security gateway. This enabled comprehensive filtering and
auditing of inbound and outbound email traffic significantly improving our interception rate for phishing and spam emails.· We implemented a major security operations model continuously optimizing the construction of our cybersecurity
operations center. Over the year we analyzed 1.5 million logs related to external website attacks. We provided 24/7 security
monitoring and defense during critical time periods and successfully delivered cybersecurity protection for several major
In 2024 we organized two red team testing exercises and participated in multiple
events and holiday periods ensuring secure and stable network operations.rounds of live cyberattack and defense drills. These activities helped us assess our
security defense capabilities strengthen team coordination and technical skills
and further improve our ability to respond to information security incidents.
79 80Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Information We continuously enrich our training formats and communication platforms to promote In
Security Education the normalization of information security awareness across the organization. These
automobile We have issued the "Cybersecurity Management Regulations" and the "WeCom Operation Management Guidelines
dealership
efforts aim to strengthen every employee’s sense of responsibility and participation in (Trial)" to protect customer privacy and information security. All dealerships are prohibited from copying or misusing
and Training business customer personal information without authorization. Employees are strictly forbidden from retrieving or viewing cybersecurity while enhancing their ability to prevent potential threats. segment
any customer data that is unrelated to the current service being provided ensuring strict privacy protection.In 2024 we organized activities in alignment with National Cybersecurity Awareness Additionally when conducting customer satisfaction surveys or follow-up calls we pay special attention to customer
Week and held three specialized cybersecurity training sessions for all employees feedback regarding personal data security allowing us to identify and resolve potential information leakage risks in
namely "Practical Techniques and Experience Sharing in Cyber Offense and Defense" a timely manner. We also conduct regular system screenings to detect any unauthorized logins data usage or leaks
"Strengthening the Information Security Barrier—Cybersecurity and Confidentiality thereby ensuring the comprehensive security and privacy of customer information.Awareness for Employees" and "Enhancing Cybersecurity Awareness and Fortifying
the Company’s Security Foundation." The sessions were attended by more than
70 participants in total helping to spread cybersecurity knowledge and improve
employees’ awareness and risk prevention capabilities. Contributing to Industry Development
We are deeply engaged in our four core business segments of digital intelligence technology electronics technology supply chain
and automobile dealership. We actively participate in industry innovation and collaboration and contribute to the advancement of
the sector by sharing knowledge and technologies across platforms. Through these efforts we continue to deliver the strength and
value of Xiamen Xindeco to the broader industry landscape.Industry Engagement of the Company and Subsidiaries in 2024
Xiamen Import & Export Chamber of Commerce Vice President
Xindeco Xiamen Modern Supply Chain Federation Vice President
Xiamen Chamber of International Commerce Vice President
China Automobile Dealers Association Vice President
Xindeco ITG Automobile
Group
Xiamen Automobile Dealers Association Permanent Vice President
Strengthening the Information Security Firewall – Employee Training on Cybersecurity and Confidentiality
Awareness
RAIN RFID Alliance Members of the Association and Asian Working Group
Fujian Provincial Information Industry Association Vice President
Xiamen IoT Industry Association Permanent Vice President
Xiamen Xindeco IoT Xiamen Intellectual Property Association Member
Customer Privacy
IoT Application Branch of China Information Industry Trade of Association Director
Xiamen Hi-tech Development Association Member
We continue to strengthen our customer privacy protection practices and have implemented a range of measures to strictly manage Xiamen Science and Technology Service Association Member
the collection use and storage of customer information ensuring its security. In 2024 we recorded no incidents of customer data China Video Industry Association Member
breaches. National Lighting Appliance Standardization Technical Committee Lighting
Fundamentals Sub-Technical Committee Committee Member
Xiamen Technology Innovation Association Director
Xiamen Xindeco
Optoelectronics
In digital Xiamen High Tech Development Association Member
intelligence We safeguard customer privacy through multiple measures including data encryption strict identity
technology Xiamen Optoelectronic Semiconductor Industry Association Memberauthentication and access control regular data backup and recovery encrypted communication to ensure secure
segment
data transmission confidentiality agreements with relevant parties and enhanced security of our networks and Fujian Optoelectronics Industry Association Member
devices. These efforts ensure that customer information is not leaked or misused. Shandong Association for Public Security Technology and Protection Member
Shandong Xindeco IoT
Shandong Software Industry Association Member
81 82Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
From February to March 2024 we participated in the 2024 ISLE International Smart Display and Integrated System Exhibition.The event brought together more than 1000 companies from nearly 100 countries and attracted over 200000 visitors. During the
exhibition we showcased a variety of new products including our full range of outdoor flip-chip LED displays indoor XR series and
DCI series. Leveraging our technical strengths and innovation capabilities we were honored with the Excellent Product Award.In August 2024 we participated in IOTE 2024 the 22nd International Internet of Things Exhibition held in Shenzhen. At the event we
presented our latest products and application technologies earning the prestigious "IOTE Gold Award" for Innovative Products.We showcased the application of RFID technology in areas such as smart retail and fixed asset management and jointly exhibited
the DRAGONVERSE MR RFID system with Retech IoT demonstrating the integration of Mixed Reality (MR) technology in RFID devices.In March 2024 we were invited to participate in the 18th
International Iron Ore Market Seminar. The seminar was
co-hosted by the China Chamber of Commerce of Metals
In May 2024 we participated in the 7th Asia-Pacific Smart Supply Minerals & Chemicals Importers & Exporters and Shanghai
Chain and Logistics Innovation Expo (SSCL) held in Shanghai. Ganglian E-Commerce Holdings Co. Ltd. (Mysteel) with
Through on-site demonstrations and interactive sessions we support from Shandong Port Group Qingdao Port Co.introduced our high-end RFID electronic tag product series Ltd. and Sinotrans Central China Co. Ltd. Centered on the
designed for the warehousing and logistics sectors. These theme "Promoting Cooperation Driving Development"
solutions were highlighted for their effectiveness in reducing the event brought together representatives from iron ore
manual errors and accelerating material flow. At the expo producers and traders steel manufacturers and financial
we received the "SSCL Golden Chain Award – Best Logistics institutions to discuss the current state and future
Innovation Award" for our smart logistics-related products. outlook of the ferrous metals market.At the seminar we were named one of the "Top 20 Global
Received the Iron Ore Suppliers" under the "Black Gold Cup" honor."SSCL Golden Chain Award – Best Logistics Were named one of the
Innovation Award" This marks the eighth consecutive year we have received "Top 20 Global Iron Ore Suppliers"
for our smart logistics-related products. this distinction. under the "Black Gold Cup" honor
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In May 2024 we were invited to participate in the "2024 (3rd) Mysteel Overseas Steel In May 2024 the "2024 China Automotive Dealer
Received the
Development Conference" organized by Shanghai Ganglian E-Commerce Holdings Conference and Top 100 Rankings Release"
"Outstanding Steel Export "2024 Top 100 Automotive Dealer Groups in China"
Co. Ltd. The event focused on topics such as overseas capacity deployment mineral Trading Enterprise in China" was held in Ningbo Zhejiang under the theme
resource development global steel demand and international trade trends. It brought award for the second "Expanding New Paths Enhancing Quality and Ranked th
together representatives from domestic and international steel producers overseas consecutive year
46
Efficiency." During the conference the "2024
investment enterprises and Chinese-funded overseas manufacturing companies to Top 100 Automotive Dealer Groups in China"
discuss the future of China's steel industry abroad. list was officially released. We were once again
included in the rankings securing the 46th
At the conference we were once again recognized for our business practices in the position this year—up three spots from the Selected as an
steel supply chain and received the "Outstanding Steel Export Trading Enterprise in previous year. "Outstanding Marketing Innovation Case"
China" award for the second consecutive year.In addition one of our service assurance cases
was selected as an "Outstanding Marketing
Innovation Case" in the same ranking series. "2024 Top 100 New Energy Automotive Dealer
Thanks to our ongoing efforts in the new energy Groups in China"
vehicle sector we also ranked 59th on the "2024
Ranked th
Top 100 New Energy Automotive Dealer Groups 59
in China" sub-list.In February 2024 the "2024 Xiamen Trusted Automobile
Dealership" selection event was launched aimed at promoting
integrity in business operations and enhancing service
standards across the industry. Following a joint review by
representatives from Xiamen’s leading automotive media
outlets 10 dealerships were selected for the honor. At the award
ceremony our automobile dealership business was recognized
as a "2024 Xiamen Trusted Automobile Dealership." This marks
the 18th consecutive year we have received this title.Recognized as a
"2024 Xiamen Trusted Automobile
Dealership."
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Employees
We regard talent as the primary driving force for sustainable development.In June 2024 the "2024 China Automotive Circulation Industry We continuously optimize our human resources management respect
Conference and Auto Export Summit" guided by the All-China
and protect the occupational health and legal rights of all employees and
Federation of Industry and Commerce and hosted by the Auto
Dealers Chamber of Commerce was held in Zhengzhou Henan. are committed to providing competitive compensation and benefits as
Themed "New Vehicles New Patterns New Dealerships" the well as comprehensive education and training systems. We strive to offer
conference brought together industry leaders to exchange views a safe healthy diverse and inclusive working environment create broad
on current trends in automotive development. development opportunities for our employees and work hand-in-hand to
co-create and share the long-term value of sustainable development.For our practices in the area of social responsibility we
were honored as one of the "Top 100 Enterprises in Social
Responsibility in China's Automotive Circulation Industry 2024"
and were also listed as a "2024 Trusted Commitment Enterprise in
China’s Automobile Dealership Service Industry."
Were honored as one of the "Top 100 listed as a
Enterprises in Social Responsibility "2024 Trusted Commitment Equal Employment
in China's Automotive Circulation Enterprise in China’s Automobile
Industry 2024" Dealership Service Industry."
We place great emphasis on the sustainable development and
cultivation of talent and continuously improve our employment
mechanisms. We actively promote localized employment
and recruit outstanding professionals from society based on
merit providing a strong talent foundation for our high-quality
development. We adhere to the principle of equal employment
throughout the recruitment process in strict compliance with
the "Labor Law of the People's Republic of China" the "Labor
Contract Law of the People's Republic of China" the "Law on the
In November 2024 the "2024 China Protection of Women's Rights and Interests" the "Regulations on
Automotive Circulation Industry Annual the Employment of Persons with Disabilities" and other relevant
Xindeco IoT Malaysia Team
Conference and Expo" was held in laws and regulations. We ensure that all candidates are given
Suzhou under the theme "Navigating equal employment opportunities based on their qualifications issues offer letters and handles onboarding procedures.Challenges Seeking Change Opening
and job requirements. To ensure that the recruitment process is standardized fair
a New Chapter." The event gathered and transparent we have established a layered approval and
industry elites authoritative experts
information reporting mechanism. Key recruitment steps
and leading enterprises to analyze We have formulated the "Employee Recruitment Management
opportunities and challenges in the must be reviewed by senior management. Internally referred Measures" under which recruitment is jointly managed by the
current market environment and explore candidates must be reported in advance and can only be hired Human Resources Department and the hiring department. The
future development strategies. The upon approval.hiring department proposes recruitment requests based on job
conference also showcased outstanding
enterprises with long-standing needs defines job responsibilities and qualification criteria and
In 2024 under the "Talent-Driven Enterprise" strategy we
commitments to public welfare. participates in resume screening interviews and onboarding
recruited talents across various functions including business
At the event we were honored with the "Together with Love and Responsibility" award by the industry association in recognition guidance. The Human Resources Department reviews recruitment
management R&D and risk management through market-
of our long-term dedication to fulfilling social responsibilities. Our efforts in poverty alleviation disaster relief environmental requests according to company strategy and staffing plans
based approaches. Recruitment channels included campus
protection and public safety awareness have yielded meaningful results and contributed to the broader public good. develops recruitment plans publishes job postings organizes recruitment overseas recruitment and social recruitment.interviews verifies qualifications conducts background checks
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Human Rights Protection
We are committed to protecting human rights and strictly comply with all applicable laws and regulations. We respect internationally
In 2024 we were recognized with several employer brand recognized human rights standards and guidelines including the "International Bill of Human Rights" the "United Nations Guiding
honors including the "Top 100 Happy Enterprises - Top 30 for Principles on Business and Human Rights" the "Universal Declaration of Human Rights" and the International Labour Organization's
Shared Development" the "2024 Outstanding Social Enterprise "Declaration on Fundamental Principles and Rights at Work." We strive to provide all employees with a fair inclusive and harmonious
Award" the "6th Yuntu Award for Excellence in Digital Innovation
working environment.Practice" and the "ISPI Performance Excellence Award."
We received no penalties in 2024 for violations of labor laws or In our business operations we pay close attention to identifying and assessing potential human rights risks. We conduct regular internal
employment discrimination. reviews in areas such as recruitment and employment practices and daily operations to evaluate possible human rights impacts and
identify areas of potential risk. These efforts help ensure that our business practices are fully aligned with legal requirements and our
broader social responsibilities.Anti-Discrimination and Anti-Harassment
We have established internal management policies such as the "Labor and Personnel Management Regulations" which clearly outline
our requirements regarding anti-discrimination and anti-harassment. We are committed to ensuring that all employees have equal
opportunities in recruitment compensation and promotion and are protected from any form of discrimination based on gender age
race skin color nationality ethnicity place of origin or other personal characteristics. We actively promote gender equality and care for
female employees and persons with disabilities working to create a diverse and inclusive workplace. We strictly prohibit child labor forced
labor and any form of sexual harassment. To strengthen human rights awareness across the organization we also organize regular training
and educational activities to ensure that employees understand and comply with our human rights protection policies fostering a healthy
and safe work environment.As of December 31 2024 we had a total of 3998 employees. The employee structure is as follows:
Employee Gender Distribution Employee Age Distribution Management Gender Distribution
3%
38%29%31%
62%68%69%
■ Male ■ Female ■ 30 Below ■ 30-50 ■ 50 Above ■ Male ■ Female
○ Definition of Management Levels: This includes senior management positions (such as roles up to two levels below the CEO) middle management (such as heads of
departments or business units in areas like finance marketing or operations or project managers in a flat organizational structure) and junior management (including
frontline supervisors entry-level managers and the lowest tier of managerial roles).Care and Wellness Seminar for Female Employees in Celebration of International Women's Day
89 90Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
In 2024 our supply chain business segment organized a thematic training session titled "Human Resources Policy Awareness In 2024 we held the graduation ceremony of the fourth session
Conference" focusing on core topics such as equal employment compensation and performance and career development. of the Xindeco Motivation Program along with a roundtable
The session aimed to provide employees with a comprehensive understanding of our human resource policies while helping discussion for outstanding young cadres. The event was
departments prevent and mitigate potential human rights risks. attended by company leadership representatives of mid-level
managers from headquarters alumni of previous sessions and
current program participants.Launched in 2020 the Xindeco Motivation Program has been
Employee Communication held for four consecutive years and has become a key initiative
for strengthening our leadership development building a
strong team of high-performing managers and enhancing
organizational capabilities. The event focused on topics such as
We respect and protect employees’ democratic rights including freedom of association and collective bargaining as granted by law.leadership development talent selection and organizational
We closely integrate the establishment and improvement of democratic management systems with daily management practices and capacity building. During the session past outstanding
corporate culture building upholding the principle of aligning enterprise development with the protection of employee rights and participants shared their career growth experiences while
interests. We have established multi-dimensional employee communication channels and actively promote democratic consultation and current trainees reflected on their learning journey and
dialogue. Through platforms such as employee representative congresses and trade union representative meetings we extensively collect discussed ways to further improve their work performance.feedback and suggestions from employees. On matters directly related to employees’ interests—such as compensation performance
benefits career development and labor and personnel management—we engage in equal negotiation and have signed various collective
agreements including the "Collective Labor Contract" the "Collective Wage Agreement" and the "Special Protection Agreement for Female
Employees" to fully safeguard employee rights. We encourage employee representatives to participate in corporate governance and
organize democratic elections decision-making management and supervision in accordance with the law. This ensures that employees'
rights to information participation expression and oversight are fully protected. In addition we facilitate communication through various
employee forums such as onboarding roundtables for new employees team leader discussion sessions "Executive Face-to-Face" meetings
and forums for outstanding young talents.In 2024 we held six employee representative congresses to discuss topics related to personnel and compensation management. We
further improved the transparency of trade union affairs by implementing disclosure mechanisms. Major business decisions related to
corporate operations personnel management compensation and procurement were openly communicated through the OA system
email employee assemblies and bulletin boards. These efforts have significantly enhanced management transparency and ensured that
employee voices are heard and valued.In 2024 we organized the Xindeco Motivation Program "Executive Face-to-Face" dialogue session. During the meeting company
executives engaged in open discussions with young cadres on topics including corporate development talent cultivation and
business management. Young representatives shared their professional insights and suggestions based on their work experiences
while company leaders provided direct responses and guidance.
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Employee Development
We remain committed to our “Talent-Driven Enterprise” strategy and focus on the full talent lifecycle—from recruitment and
development to deployment and retention—by continuously improving our employee career development system. We have
comprehensively reviewed and revised relevant policies such as the "Employee Career Development Management Regulations" and the
"Internal Trainer Management Guidelines" to establish a scientific and systematic training and development mechanism that supports
employee growth.In terms of promotion management we uphold a performance-oriented and results-driven approach. Based on both job requirements
and individual employee development we implement various promotion mechanisms including file adjustment grade advancement
competitive selection and exceptional promotions. These are supported by evaluation criteria and approval processes to ensure fair and
transparent advancement while enhancing organizational vitality and strengthening our talent pipeline.We are advancing the reform of our market-oriented talent management mechanisms. In appointing middle-level managerial personnel we Xindeco Gravitas Program Xindeco Promotion Program
have eliminated institutional barriers by launching open recruitment initiatives across both internal and external talent pools. To strengthen our
leadership team we have introduced high-caliber professionals through headhunter referrals public recruitment platforms and our internal
talent network.Employee Training
We continue to enhance our employee training and development system. In accordance with the Training sessions conducted
"Training Management Guidelines" we have implemented a three-tier training structure consisting of
Xindeco training programs business segment-specific training and subsidiary-level professional skills 233in total
training. Tailored to employees’ job levels and individual development needs these initiatives are
designed to help employees realize their potential and enhance their professional competencies.Training Delivered
In 2024 guided by the principle of "steady progress and business empowerment" we focused on
hours
building a high-quality application-oriented talent development system. Based on cultural alignment 63329
organizational capacity building and action learning we developed the "435 Xindeco Star Series"
comprehensive talent development framework. This framework covers five modules: organizational
capability enhancement leadership development key talent development specialized talent programs Employee coverage achieved
and overall competency building. Throughout the year we conducted a total of 233 training sessions Star Spark Program + Master Class + Culture Class
%
delivering 63329 hours of training and achieving 100% employee coverage. 100
Star Global Program
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Xindeco Promotion Program Star Global Program
In 2024 we focused on developing key employees and launched the third session of the Xindeco Promotion Program to enhance the
overall quality and professional skills of our core workforce. The program followed a three-pronged structure—learning track action The Star Global Program is designed to support the selection development deployment and retention of international talent
track and operations track—designed to strengthen four core competencies: goal orientation execution capability problem-solving with the aim of strengthening the professional capabilities of our overseas teams and supporting the company’s globalization
ability and communication skills. It incorporated a variety of development formats including roundtable dialogues group reading strategy. In 2024 we organized a course titled "Talent First in Global Expansion" which analyzed the differences in recruitment
and reflection on The 7 Habits of Highly Effective People and action learning. The program was honored with the "2024 6th Yuntu culture and employment policies between China and Southeast Asian countries. The course also addressed key issues in talent
Award for Digital Empowerment and Innovation Practice" by Yunxuetang. management for Chinese companies expanding abroad. Focusing on topics such as local labor compliance cultural differences
and talent profiling the course integrated case studies from globalizing enterprises and introduced strategies for recruitment
and human resource management. It provided participants with practical insights into talent strategies for international business
development.Star Talent Program
The Star Talent Program targets our HR professionals aiming to strengthen their capabilities in organizational effectiveness and
business enablement. In 2024 we launched the fifth session of the program featuring the course "Talent Review Workshop." After the
course HR teams at various levels selected critical positions to carry out talent reviews assessing both the quantity and quality of Industry-University Collaboration
internal talent to better support business strategy and execution.We have long been committed to exploring industry-university
Star Excellence Program collaboration models. Guided by the principles of resource
sharing complementary strengths and mutual development
we actively engage with higher education institutions to build
joint training and internship platforms. These partnerships help
The Star Excellence Program focuses on talent development in key areas such as digitalization business operations marketing and us establish a strong pipeline for talent reserves and provide
R&D. In 2024 we launched the program’s first course titled "Digital Transformation Practice Sharing." The course explored the solid support for the development of our talent strategy.strategic value of digital transformation and its impact on enterprise management models operational frameworks and business
models. Drawing from corporate case studies the course also examined practical pathways and strategies for implementing digital
transformation. Conducted a Visit to Xiamen University Malaysia Campus
Collaborated with the Education and Training Center of Xiamen Institute of Technology to Launch a Specialized Business English Training Program
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Employee Compensation and Benefits Occupational Health and Safety
We have developed and continuously improved a series of compensation and benefits policies including the "Compensation Management We strictly adhere to the principle of “safety first prevention foremost and comprehensive management” in our approach to workplace safety.Regulations" "Employee Benefits Management Guidelines" "Performance Management Policy" "Enterprise Annuity Master Plan" and "Expatriate We fully comply with the "Work Safety Law of the People's Republic of China" the "Law of the People's Republic of China on the Prevention
Employee Management Guidelines." These systems support a performance-driven compensation distribution mechanism enabling us to offer and Control of Occupational Diseases" and all relevant occupational health and safety laws and regulations applicable in the regions where we
competitive compensation and benefits to our employees. operate. We continuously improve our internal occupational health and safety management systems and are fully committed to advancing the
construction of a robust occupational health and safety management framework to safeguard the well-being of all employees. In key areas of
our operations both Xindeco IoT and Xindeco Optoelectronics—subsidiaries under our electronics business segment—have obtained ISO 45001
certification. We continue to promote standardized safety management practices across our subsidiaries further strengthening the foundation of
our work safety management and enhancing the scientific standardized and regulated approach to occupational health and safety.Performance-based Compensation
2024 Occupational Health and Safety Management Metrics
We have established a comprehensive incentive system based on base salary supplemented by performance bonuses and welfare allowances. Metrics 2024 Performance
Compensation structures are designed to meet business needs according to job responsibilities nature of work and value creation models. Our
position system is categorized into three tracks: management professional and operational. Each track has clearly defined rank standards and 100% signing rate of Work Safety Target Management Responsibility Statements Achieved
evaluation methods adhering to the principles of alignment balance progressive promotion and dynamic adjustment. This ensures that our
compensation management is both scientific and flexible. We implement monthly semi-annual and annual performance evaluations covering all 100% implementation of performance-based rewards and penalties Achieved
employees. Evaluation criteria are tailored to the nature of each job category and consider factors such as educational background management
experience professional skills job title and length of service. Employees are required to report on the achievement of performance indicators at 100% timely closure rate of accidents Achieved
the mid-year and year-end review stages. After each evaluation cycle direct supervisors conduct performance review meetings and complete the
"Performance Communication Form" to ensure effective feedback and facilitate improvement. Full implementation of national and provincial work safety and fire protection directives Achieved
To strengthen compensation and performance management we have implemented the "Accountability Management System for Irregular Zero extremely serious or major accidents Achieved
Business and Investment Conduct" incorporating ethical compliance requirements into our performance framework. Through regular
performance communication mechanisms we ensure that employee compensation aligns with both company-wide performance and individual Zero fatality rate for general accidents Achieved
contributions. This enables a balanced incentive and restraint system driving continuous improvement in organizational effectiveness.Zero incidents with direct economic losses exceeding RMB 1 million Achieved
Employee Benefits A sound occupational health and disease prevention management system in place; no reported occupational illness cases Achieved
We ensure timely salary payments and uphold the principles of equal pay for equal work and minimum living wage standards. We strictly
comply with legal requirements to contribute to social insurance and housing provident funds and have implemented an enterprise annuity
system. In addition we provide group accident insurance for all employees. On the foundation of a company-wide social insurance system we
offer a variety of caring benefits such as 10 days of annual parental leave for eligible employees statutory maternity and breastfeeding leave for
female employees and other supportive policies to create a warm and inclusive working environment. To further strengthen mutual aid among
employees we have introduced the "Xiamen Xindeco Employee Mutual Aid Center Management Guidelines" and established a dedicated "Mutual
Aid Fund Pool." The fund is sourced from employee contributions government and administrative subsidies trade union support and donations
from various sectors of society. It is managed by the Employee Mutual Aid Center Committee of Xiamen Xindeco and is used specifically to carry
out employee mutual support programs and provide assistance to families facing hardship.
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Workplace Safety Management Hazard Identification and Risk Assessment
In accordance with the "Classification and Code of Hazards in the Production Process" (GB/T 13861-2022) and the "Classification of Accidents
We have established a safety management Involving Enterprise Employees" (GB6441-86) we conduct systematic and comprehensive hazard identification that considers unsafe human
system based on the principles of "unified ·Work Safety Management Structure behaviors unsafe conditions of objects adverse environmental factors and managerial deficiencies. This process covers production systems
leadership clearly defined responsibilities equipment and facilities working environments and operational activities. Through methods such as system analysis hazard investigation
tiered management category-specific Leader:Chairman delineation of hazardous areas analysis of enabling conditions and triggering factors and evaluation of potential hazard severity we identify types
guidance and full employee participation." of hazards and assign appropriate safety risk levels. Based on this assessment we develop targeted risk control measures.A Work Safety Leadership Team has been Work Safety Doputy Loadars: Deputy Party Socrotary/
Leading DisciplinaInspection Committee Secretary/Trade
formed to coordinate our overall safety Group lnion ChairmanExecutive Deputy General Manager The primary responsible person at each subsidiary is tasked with organizing and leading the risk assessment and classification work. We apply
management efforts under which a scientific methods such as the LEC Evaluation Method and the Risk Matrix Method to classify identified hazards into four levels: Major Risk
dedicated office has been set up and staffed Members: Leadersin charge of business segments Significant Risk Moderate Risk and Low Risk—coded in red orange yellow and blue respectively. A centralized safety risk database has been
with full-time or part-time safety officers established and a "Major Safety Risk List" has been compiled. We have also created four-color safety risk distribution maps that clearly display
responsible for daily safety operations. To Director:Deputy PartySecretary/Discipline InspectionCommittee Secretary/Trade Union (hairmmn risk levels current control measures responsible personnel and control capabilities. Each risk has a corresponding file under the "One Risk One
further strengthen safety environmental File" system with documentation managed according to its risk level. For all on-site identified risks we have defined corresponding emergency
and asset management we established the Office Deputy Director response procedures and measures. In the event that an uncontrollable risk is identified we immediately halt operations in the affected area or
Safety and Environmental Management shut down equipment evacuate personnel from the danger zone and implement corrective measures. After rectification the risk is reassessed
Department in 2024. This department is Members and real-time monitoring is used to ensure continued safety.responsible for managing workplace safety
asset protection environmental compliance
Tiered Safety Risk Control
and public communication and stability.Signed "Work Safety Target We fully implement an all-employee responsibility system for workplace safety with clearly defined Based on the results of safety risk assessments we classify safety risks by both type and severity into four hierarchical levels: "Subsidiary Level
Management Responsibility
safety responsibilities extending from senior executives to front-line workers. Safety performance Department Level Team Level and Individual Position Level." We ensure that risk control responsibilities are systematically broken down and Agreements"
targets are integrated into the annual performance evaluation systems of our business segments and assigned to all relevant positions including management and frontline staff.409in total subsidiaries as well as those of relevant management personnel. Assessment results are used as key
references in personnel selection promotions and rewards or disciplinary actions. Moreover the
· For major and significant safety risks the primary leaders of each subsidiary are required to oversee the implementation of
Signing rate achieved performance-based compensation of management personnel is directly linked to the achievement of control measures in accordance with the "Five Requirements" principle. When issues are identified they are responsible for
100 safety and environmental targets within their areas of responsibility. In 2024 we signed a total of 409 % promptly initiating corrective actions."Work Safety Target Management Responsibility Agreements" across all levels of the organization · Work safety leaders of each subsidiary is responsible for organizing quarterly evaluations to assess the implementation and
achieving a 100% signing rate. effectiveness of control measures related to major risks. These evaluations focus on identifying any gaps or blind spots in risk
identification and control efforts. Based on the findings we refine and improve our control strategies. The Tiered Safety Risk
Control Office is responsible for conducting day-to-day inspections in alignment with each risk's specific control measures and
for setting priorities for the following quarter based on quarterly and ad-hoc safety risk assessment results.· Each subsidiary conducts quarterly reviews of identified safety risks in their operations implementing control measures across
areas including policies management procedures equipment emergency response accountability and performance
evaluation. In addition each quarter subsidiaries perform a focused inspection and analysis of key risk areas to ensure that
Safety Risk Prevention and Control control measures align with actual on-site conditions enabling continuous improvement and optimization.We uphold the safety management philosophy of "full employee participation focused priorities and tiered control" and have continuously Furthermore in areas identified as having major risks we implement the following measures: installing safety risk bulletin boards and distributing
refined our internal policies such as the "Safety Risk Identification Evaluation and Tiered Control Regulations" and the "Major Safety Risk workplace-specific safety risk notification cards that specify hazards potential accidents preventive or emergency response measures and
Notification and Alert Guidelines." We have established a comprehensive safety risk management system to identify and strictly control potential reporting hotlines. For high-risk locations and job positions we display prominent warning signs or alarm devices and equip sites with appropriate
safety hazards harmful factors and major sources of danger across our subsidiaries' production and operational activities thereby enhancing our emergency equipment and evacuation routes. These measures are aimed at enhancing risk detection and early warning systems and improving
overall safety assurance capabilities. employees’ ability to identify and respond to safety risks.
99 100Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Safety Hazard Inspection
In supply
chain business We organized self-inspection and rectification
segment activities and implemented multiple measures
We continue to advance our safety inspection and hazard identification efforts in strict alignment with General safety hazards identified to strengthen the foundation of safe operations.and rectified
internal policies such as the "Work Safety Management Measures" and the "Safety Hazard Investigation and In warehouse management we continued to
Rectification Regulations." We place strong emphasis on the identification and management of potential 397in total optimize and improve our emergency management system and contingency response plans. We also
hazards assigning clear responsibility for the detection and resolution of all categories of safety risks. We also
increased the frequency and intensity of safety
incorporate digital tools into our safety management practices to help prevent and reduce workplace accidents. Rectification rate achieved inspections during holidays and periods of natural
disasters with a focus on enhancing our overall
%
In 2024 we focused on key risk areas including manufacturing and trade construction sites fire safety 100 safety performance and ensuring stable and orderly
confined spaces and new energy vehicles. We launched and coordinated a series of special campaigns such operations. In 2024 two general safety hazards
as the Winter-Spring Fire Safety Rectification Campaign Fire Safety Rectification of Polyurethane Flammable were identified and fully rectified. For office safety
management we worked closely with property management teams to conduct regular fire safety checks
Insulation and Sandwich Materials Confined Space Operations Rectification Crackdowns on Unauthorized
inspect fire door closure status and strictly enforce fire prevention and anti-theft measures. Prior to holidays
Construction and Illegal Hot Work and the “100-Day Life Channel Clearance Campaign.” These initiatives
we also reminded departments to secure doors and windows and disconnect power sources to ensure the
significantly deepened our efforts in identifying and addressing potential hazards. Throughout the year safety of office premises. In terms of official vehicle safety management we continuously strengthened
we identified and rectified a total of 397 general safety hazards including 250 general fire safety issues 41 driver awareness and education. We made reasonable arrangements for long-distance and nighttime driving
hazardous chemical risks 2 confined space operation risks and 104 other types of hazards achieving a 100% tasks and strictly prohibited fatigued driving. We rigorously followed the "Official Vehicle Use Management
rectification rate. Guidelines" and carried out regular comprehensive inspections and maintenance to ensure all vehicles
remained in optimal condition. In 2024 no safety incidents occurred involving official vehicles and all transport
tasks were completed safely and reliably providing strong logistical support for our business operations.In electronics
technology We place strong emphasis on safety inspections. In 2024 we conducted a total of 46 special safety inspections In automobile
segment
including 20 pre-holiday inspections around Spring Festival Qingming Festival Dragon Boat Festival Labor Day dealership
business segment
and Mid-Autumn Festival; 11 comprehensive self-inspections; 6 targeted inspections for fire hazards in facilities;
Xindeco ITG Automobile Group conducts both regular
3 special inspections focused on the rectification of major accident risks; and 6 inspections for typhoon and
and ad hoc comprehensive safety inspections. Special
flood preparedness. A total of 82 general hazards were identified including 58 fire-related risks 5 hazardous
attention is given to safety checks around major
chemical-related risks and 19 other types of hazards—all of which were fully rectified.holidays including New Year's Day Spring Festival
Labor Day the flood season and the Mid-Autumn
and National Day holidays. These inspections are
aimed at identifying and addressing safety hazards in
a timely manner thereby preventing major accidents
and significantly reducing the occurrence of general
incidents. In 2024 Xindeco ITG Automobile Group
identified a total of 106 safety hazards all of which were
fully rectified achieving a 100% rectification rate.Safety Hazard Inspection
101 102Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Digitalization We are committed to advancing standardized and digitalized safety management actively exploring Safety Education and Training
of Safety the application of digital technologies to enhance safety practices. Leveraging the "Yijian" platform
we launched a pilot program for a digital safety management system. This initiative aims to build a
Management safety management platform aligned with our business operations enabling real-time monitoring We place great importance on raising employee awareness and competence in safety.verification and benchmarking. These digital capabilities have significantly improved the overall Through a variety of formats such as seminars on-site instruction and online sharing
effectiveness and precision of our production safety management. we provide comprehensive safety training to enhance employees’ safety knowledge
and skills thereby laying a solid foundation for our safe production operations.In 2024 we developed an annual safety education and training plan. The training
covered national work safety guidelines policies laws regulations rules and
Emergency Management and Drills standards; safety management and technology; occupational health; emergency
management; the formulation and implementation of emergency response plans; and
analysis of typical accident cases and emergency rescue efforts. In conjunction with key
To standardize emergency response procedures we have developed and strictly adhere to a In 2024 national safety awareness events such as "Work Safety Month" "Disaster Prevention
conducted
comprehensive set of emergency management policies including the "Work Safety Accident and Reduction Day" and "119 Fire Awareness Day" we organized a series of activities
Conducted a total of
Emergency Response Plan" "Emergency Response Plan for Sudden Environmental Incidents" 34emergency drills including expert lectures safety knowledge competitions fire safety training safety
"Chemical Spill Emergency Response Plan" "Fire Emergency Response Plan" "Flood and Typhoon culture promotions and emergency drills. These efforts continuously strengthened 81in-person safety training sessions
Emergency Response Plan" "Earthquake Emergency Response Plan" "Warehouse Emergency employee awareness of safety responsibilities and improved their emergency response
Response Plan" and the "Acute Occupational Hazard Emergency Rescue Plan." We also organize with a total of capabilities. Our non-ferrous and ferrous metals business divisions actively encouraged
With
regular emergency drills to enhance employees’ response capabilities in crisis situations. In 2024 participants employee participation in municipal safety management training programs. As a result
we proactively conducted 34 emergency drills with a total of 884 participants throughout the year. 884 7 employees completed initial safety officer training and 12 employees passed safety 3710attendees
officer recertification injecting professional strength into our safety management team
and further advancing the specialization and standardization of our safety operations.Training delivered approximately
When responding to various risks and disasters we implement a tiered In 2024 we conducted a total of 81 in-person safety training sessions with 3710 hours in total
response mechanism: attendees totaling approximately 5565 hours of training. In total 1854 employees 5565
participated in occupational health and safety training as well as emergency drills.· For work safety accidents we follow a four-level emergency response
strategy categorized as Level I II III and IV from highest to lowest. Upon
the conclusion of rescue and recovery efforts each business unit is required
to review and summarize the lessons learned from the emergency response
and submit an emergency response summary report with recommendations
for future improvements.·We have formulated the "Acute Occupational Hazard Emergency Rescue Plan"
and established a comprehensive emergency response organizational
structure. For occupational hazards such as noise and dust incidents are
classified into three levels (Level I II III) based on severity. We have defined
specific response and handling procedures for each level to ensure swift and
effective action during occupational hazard emergencies thereby maximizing
the protection of employees' health and safety.·For natural disasters such as earthquakes typhoons heavy rainfall and
floods—typically driven by climate change—we classify events into four levels
(Level I II III IV) based on their impact and severity. We implement emergency
support measures and coordinate rescue and recovery operations accordingly.Emergency Drills
Safety Training
103 104Xindeco 2024 Sustainability Report Rural Revitalization and Social Contributions Innovation-driven Development Suppliers and Customers Employees Society
Occupational Health Management 7 8
We care deeply about the balance between work and life for our employees. 1
To promote well-being we established a sports club and actively
encourage staff to participate in various cultural and athletic activities such
as basketball tournaments badminton competitions and public speaking
contests. Our labor union provides employees with annual outdoor activity
and travel passes organizes regular health check-ups and hosts wellness 7
seminars to support both physical and mental health. During the summer
heat season our union also organizes "Cooling Comfort" campaigns to 8
deliver care packages and refreshments to frontline employees helping 9
them stay safe and healthy in high-temperature working environments. 2024 Basketball Match
239
123
2024 Summer "Cooling Comfort" Campaign
456
4 5 6 2024 Badminton Match
105 106GOVERNANCE
⊙ 2024 Management Targets for Governance Matters
·Continuously improve the sustainable development governance framework
·Establish a comprehensive risk management framework and enhance the risk control and
compliance management system
·No conflicts of interest incidents occurred throughout the year.·No incidents of money laundering or insider trading occurred throughout the year
·No lawsuits or administrative penalties occurred due to unfair competition practices throughout
the year.·100% of employees received communication on anti-corruption and bribery policies
·100% of employees participated in anti-corruption training during the year
·No incidents of tax violations occurred throughout the year.·Regularly disclose the sustainability report annuallyXindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
Risk and Compliance 1.Approves the company's fundamental systems policies and other major matters related to enterprise-wide risk
Board of Directors management;
Management 2.Establishes an Audit and Risk Control Committee to supervise and guide management in the implementation of risk management work.
1.Organizes and implements risk management activities including: approving risk management measures and
We base our approach on development strategies and business plans General Manager’s risk appetite and determining key areas of focus;
Executive Meeting 2.Reviews the risk register and monitoring plans evaluates business segment performance and coordinates
continuously improving the risk management and internal control systems.resource allocation.We strengthen the integration of risk control compliance and business
1.Coordinates enterprise-wide risk management. The group leader is a senior executive and members are
operations enhancing the company's risk management capabilities to Risk Management Working
appointed by the General Manager’s Executive Meeting;
Group (Under the General
effectively prevent risks associated with business development ensuring the Manager’s Executive Meeting) 2.Drafts systems and policies proposes risk appetite organizes risk assessments and supervises and evaluates
company's stable and sustainable growth. the work of business segments.Risk Control and Compliance Coordinates daily risk management tasks leads the drafting and revision of policies organizes risk identification
Department (Secretariat) assessment monitoring inspection and evaluation and promotes a risk management culture.
1.Bear the primary responsibility for risk management implement policies and carry out daily operations;
Functional Departments 2.Responsible for identifying assessing formulating response strategies and monitoring and reviewing risks
within their respective scopes of responsibility.Risk Control and Management System
Implement risk management policies cooperate in risk information collection and reporting and accept
Business Segments supervision inspections and evaluations.We have progressively established a top-down clearly defined
Board of Directors
enterprise risk management framework. Led by our Board
Internal Control Audit 1.Conduct post-event supervision of risk management activities;
of Directors and General Manager’s Office this framework Department and Supervisory 2.The Internal Control Audit Department conducts semi-annual inspections on key areas such as use of raised
is supported by three lines of defense: our headquarters’ Office (Supervisory funds guarantees and related-party transactions and regularly reports to the Audit and Risk Control Committee.Audit and Risk ControlCommittee Departments)
functional departments and business segments the Risk
Management Working Group together with the Compliance
& Risk Control Department and the Internal Audit and General Manager'sExecutive Mleeting
Supervision Office. We closely integrate risk management
with functional operations and business processes to ensure At the same time we further improve and enhance the risk assessment mechanisms of each business segment strengthen risk
its effective implementation in our day-to-day operations. Risk Management working Group control across the segments and reinforce the unified management of enterprise-wide risk control.·In the supply chain segment we have established a two-tier risk assessment meeting structure and developed the "Work Rules for Supply Chain
Segment Risk Assessment Meetings." The first-tier risk assessment meeting for the supply chain segment is chaired by the company's chairman with
members including the company's general manager CFO vice general manager in charge of the Risk Control and Compliance Department and vice
The departments Risk Control Internal Coutrel Audit
Business responsiblefor the general manager in charge of business segments. The second-tier meetings include the Risk Assessment Meetings for the Non-ferrous Metal Division and Compliance Departmentand
Segments centralized management Department(Secretariat) Supervisory Office and the Ferrous Metal Division. These are chaired by the respective vice general manager in charge of the business segment with members including
ofvarious risks
the segment's general manager risk control officer and financial officer.·In the electronics technology segment digital intelligence technology segment and automobile dealership segment we have established risk
assessment meetings. The chairman of the company serves as the chief chairperson with members including the company's general manager CFO
vice general manager in charge of the Risk Control and Compliance Department general manager of the Risk Control and Compliance Department
The first line of defense* The second line of The third line of
defense "Coordlinating defense"Independent general manager of the Finance Department general manager of the Legal Department general manager of the Treasury Department as well as the Implemnentingresponsi
bility" responsibilties" supervision" segment leaders/responsible persons and financial officers.·The risk assessment meetings follow internal work guidelines and are held regularly or irregularly based on business needs to review business
projects within the scope of approval authority.·The company’s Internal Control Audit Department conducts an annual inspection of the compliance and execution of the projects reviewed by the
Risk Management Organizational Framework
risk assessment meetings and submits a special report to the risk assessment meetings.
109 110Xindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
We continue to strengthen the development of risk management and internal control systems. In 2024 we developed the "Enterprise-Wide We have established a warning supervision mechanism and formed a warning supervision working group. The group is led by the
Risk Management System" "Risk Management Working Group Operational Management Measures" and "Negative Client List Management leader in charge of the Risk Control and Compliance Department with the general manager of the Risk Control and Compliance
Implementation Rules." Additionally we revised existing system documents such as the "Futures and Derivatives Investment Management Department serving as the deputy leader. The working group also includes risk control specialists and risk control personnel from
System" "Material Trade Business Classification Control Requirements" "Management Measures for Responding to Emergency Business each business segment as members. The group is responsible for supervising the implementation and progress of solutions to
Risk Events" "Client Credit Evaluation Working Group Operational Rules" and "Supply Chain Business Credit Management Measures." risk warning issues. The working group holds monthly meetings to specifically supervise warning issues with the responsible
departments reporting to the group on their response plans and progress in addressing risk points or warning issues identified during
In addition to effectively implement risk management responsibilities we have established specific risk management indicators covering their daily operations.areas such as compliance management risk investigation and inspection supervision risk control recommendations and risk management
in each business segment. These indicators are linked to the performance of the Risk Control and Compliance Department personnel. We We have established an emergency response working group for unexpected risks and developed the "Emergency Management
have also developed other personalized assessment criteria for different positions conducting regular comprehensive assessments. For Measures for Responding to Unexpected Operational Risk Events." We have set up an emergency response mechanism and clarified
any violations of risk management regulations such as failure to promptly identify warn respond to report or conceal and omit significant the reporting process for unexpected risks to ensure the timely and effective response to and handling of sudden operational risk
operational investment risks resulting in asset losses or other adverse consequences the company will investigate and collect evidence events minimizing the potential significant impact such events may have on the company.according to the "Management System for Accountability of Violations in Business Investment." Depending on the severity of the situation
corresponding actions will be taken against the directly responsible individuals supervisors and leadership. In addition to strengthen the risk control awareness of personnel in the Risk Control and Compliance Department we encourage
employees to promptly identify report and address potential risks. We have developed the "Risk Hazard Reporting and Incentive
To further strengthen the unified management of risk control and enhance the overall risk control level of the company in 2024 we will Scheme for Risk Control and Compliance Department Employees." This scheme rewards employees who meet certain criteria
align with our strategic planning and business goals. We will focus on four key objectives: reshaping risk appetite restructuring the risk including promptly identifying flaws in risk control systems and processes and proposing optimization suggestions that are adopted
control and compliance system rebuilding a rapid response mechanism and reengineering the compliance professional team. These discovering and reporting risks during routine inspections to prevent risk events or demonstrating exceptional performance
efforts aim to promote the development of the risk control and compliance management system. We will continuously improve and in handling risk events and effectively mitigating financial losses for the company. These employees will receive corresponding
optimize the risk management operating mechanism addressing the weaknesses in the company's operational management. performance points and rewards during the regular performance evaluations.Risk Identification and Assessment Risk Supervision and Inspection
We have established and improved the risk identification and assessment mechanism in line with our operational management
We continuously improve our risk investigation and supervision mechanism. By integrating risk monitoring we strengthen the risk
and business realities. Our Risk Management Working Group organizes regular risk identification and assessment activities with
supervision inspection and early warning tracking for each business segment while urging relevant units to implement corrective
various functional departments and business segments to determine the key risk register. In the event of significant changes in the
actions in a timely manner to enhance operational risk prevention efforts. In 2024:
macroeconomy market environment or corporate strategy that require adjustments to the key risk register each business segment
will conduct research and submit the proposed changes to our Risk Management Working Group which will then adjust the key risk
register accordingly. In 2024
Risk Monitoring and Reporting *We participated in the steel industry’s "Inventory Safety Joint Action" conducting monthly joint inventory checks of steel
warehouses with leading industry enterprises. We inspected multiple processing projects promptly reporting and warning
about identified issues and urging corrective actions.We establish and continuously improve our risk monitoring system based on the key risk register dynamic risk identification and *We conducted evaluations and management of logistics suppliers self-managed warehouse operations inbound and outbound
warehouse procedures bonded warehouse receipt management and compliance with the "Domestic Trade Direct Delivery
assessment results and the occurrence of major risk events. This system enables dynamic monitoring of risks to ensure the timely
Business Work Guidelines" holding specialized meetings to propose corrective measures.and effective prevention and response to various risks. We strictly implement the operational risk classification reporting mechanism
*We performed in-depth analysis and screening of key customers to prevent the risk of overly large exposure to a single customer.and risk response system strengthening the prevention of operational risks in each business segment. Based on the actual situation For customers whose credit transaction volume exceeds a certain threshold we conducted debt analysis and for customers
of each business segment we identify key operational risk warning factors and develop the "Operational Risk Level Classification with excessive exposure in the non-ferrous and ferrous metal divisions and Xindeco ITG Automobile Group supply chain
Indicator Table" for each segment. The warning factors are divided into three risk levels with clear risk quantification standards business we conducted risk assessments.and reporting responsibilities. Each business segment strictly adheres to the requirements of the "Operational Risk Reporting and *We inspected the stamp management practices in the supply chain and automotive segments and prepared optimization
reports. We organized self-assessments and cross-checks of stamp management practices across business segments.Disposal Management Measures" reporting risk issues in a timely manner according to the prescribed procedures and formulating
and implementing response measures and solutions.
111 112Xindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
We continue to integrate internal control management into daily audit projects continuously optimizing the internal control system. Risk Control and Compliance Education
By strengthening audits of the company and its subsidiaries' operational management and business risk points we promptly identify
deficiencies and issues for corrective action assisting in improving the compliance and operational level of the company and its
subsidiaries. We actively organize various forms and themes of risk control and compliance education strengthen the professional development
of the risk control team and cultivate and enhance employees' awareness and expertise in risk management and internal control.In 2024 the internal control audit work conducted included:
*We carried out a total of 17 internal audit projects for the company’s headquarters and each business segment identifying 59 In 2024
audit issues. We proposed 42 corrective actions with deadlines and 8 management suggestions. The completion rate for
corrective actions within the deadlines reached 100%.*We organized over 9 risk control and compliance-related
*We organized self-assessment activities for the effectiveness of internal controls in the company's headquarters functional
training sessions covering topics such as risk control case
departments and each business segment for 2023 resulting in the creation of an internal control self-assessment report.analysis new work guidelines for risk review meetings
*Based on audit findings we provided corrective recommendations for internal control weaknesses and high-risk areas in the
data entry for tracking exposure business exposure
business operations and management of various business units and functional departments thereby promoting improvements
statistics training special training on letters of credit and
in corporate management standards.ERP training for key operational processes and
management reports in supply chain operations.*We conducted internal exams for the company's risk
control staff to strengthen their management capabilities
and organized exams on futures management policies for
new employees.*We regularly held internal departmental exchange
meetings and risk control and compliance communication
sessions with various business segments sharing cases
and experiences to enhance the professional skills and risk
management awareness of the risk control team.Analysis of Classic Supply Chain Business Cases
Digital Risk Control and Development
We continue to advance digital risk control and development leveraging digital tools to enhance the quality and efficiency of risk
management. In 2024 we further optimized the North-South system modules and approval processes completed the development
of the supply chain business inventory module added new features such as warehouse supervision management and optimized
the "Supply Chain Business Logistics Document Platform" internal transaction contract approval processes and internal credit
evaluation approval processes to improve business approval efficiency. Additionally we improved the "Risk Review Meeting Tracking
Dashboard" designed and developed the non-ferrous ledger sorting program which is now applied to spot system data imports and
advanced the implementation of the new "Risk Data Dashboard" for emerging segments.Special Audit of the Risk Review Meeting
113114公司治理
Xindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
We are continuously improving our integrity system by developing various policies and
Business Practices documents such as the "Disciplinary Committee Meeting Rules" "Anti-Fraud System" In 2024
"Integrity Risk Prevention and Control Manual" "Integrity Risk Prevention and Control
Embedded in Business Risk Control Work Management Measures (Trial)" "Interim Measures
We uphold high standards of business ethics and strictly comply with we actively explored and
for Special Supervision and Inspection of the Implementation of the Central Eight Provisions
relevant laws and regulations including the Anti-Unfair Competition Law promoted the establishment
'1+X'" "Management Measures for Leaders' Integrity Files" and "Implementation Measures of Integrity Officers in
of the People's Republic of China the Anti-Monopoly Law of the People's
for Regulating Integrity Talks for Leadership Personnel." These documents aim to strengthen enterprises outside of Xiamen.Republic of China and the Interim Provisions on Banning Commercial
the guidance and regulation of integrity construction anti-corruption and anti-fraud We defined the roles and
Bribery. We consistently practice integrity and compliant business
work while also preventing integrity risks. We have explicitly outlined prohibited unethical responsibilities of the Integrity
operations advocate for free and fair competition and firmly oppose Officers and outlined work
behaviors in our "Anti-Fraud System" such as accepting bribes or kickbacks embezzling
any form of corruption bribery fraud or other improper conduct. We requirements. By leveraging
company property deliberately concealing or misreporting transactions and disclosing
continually enhance our daily supervision system risk management the "scout" and "front-line"
company trade secrets. Furthermore our "Integrity Risk Prevention and Control Manual" functions of these officers
and internal control mechanisms establishing robust mechanisms for
provides detailed guidance on potential corruption and anti-competitive behavior in key we strengthened integrity
clean risk prevention integrity supervision and complaint reporting. By
areas of business management. For example during bidding processes we prohibit setting supervision for enterprises
strengthening ethical education we integrate business ethics into our
restrictive conditions that favor specific individuals or unfairly exclude other potential bidders. outside of Xiamen ensuring
operations making every effort to prevent integrity risks continually that supervision extends to
These documents serve as clear behavior guidelines for all employees and help effectively
improving corporate moral standards and maintaining an environment the front lines.supervise and manage employee conduct.of integrity fairness justice and freedom in business.Anti-Commercial Bribery and Anti-Corruption Integrity Risk Prevention and Control
We are responsible for overseeing and leading the integrity construction work through our Discipline Inspection Commission (referred to as We rely on comprehensive risk management and internal control systems focusing on key positions and areas to continuously
the "Disciplinary Committee"). The Disciplinary Committee has an Inspection Office that focuses on three core functions: supervision and improve the integrity risk prevention and control mechanism. This system is designed to ensure clear responsibilities standardized
inspection publicity and education and discipline enforcement and accountability. We assist in fulfilling the responsibilities of supervising processes defined risks and timely warnings. We also continue to update the "Integrity Risk Prevention and Control Manual."
the construction of the Party's work style and integrity improving the integrity risk prevention mechanism enhancing the supervisory Through early prevention of moral ethical institutional and job responsibility risks mid-term implementation of supervision and
system that shifts focus to the front line and strengthening our capacity for investigating and handling problem leads. Our goal is to guide reporting mechanisms for effective monitoring and post-event investigations and handling we effectively prevent and detect
employees to adhere to laws and regulations maintain integrity and perform duties in accordance with the rules ensuring that our corruption within our business management. By embedding integrity risk control into overall business risk management we ensure
operations are legal and compliant. To strengthen integrity building and anti-corruption work we have also established a leading group for the healthy and high-quality development of the company.Party conduct and anti-corruption work which is responsible for formulating annual tasks organizing implementation providing guidance
and supervision as well as summarizing results and reporting to higher authorities. We identify key integrity risk areas such as construction projects bidding property transactions and bulk trade based on different
business models. We also focus on critical positions related to personnel management financial control asset management
and major decision-making. By identifying relevant integrity risk points and their risk levels we establish appropriate prevention
standards and key measures. We continuously track provide early warnings and take preventive actions organizing risk prevention
Party Conduct andAnti- ·Lead: Chairman of the Board
Corruption WorkLeading ·Members: Deputy Party Secretary Party Committee Members and control investigations to effectively implement the integrity risk management mechanism. In line with our business management
Group practices we integrate annual integrity risk prevention and control measures into our overall business risk control efforts as a key
implementation step of the "Integrity Risk Prevention and Control Manual." Based on a comprehensive review of integrity risk
points we assess the integration of annual integrity risk prevention measures into business risk management. By conducting regular
inspections internal and external audits and handling reports or issues from whistleblowers we strengthen dynamic monitoring and
management of the integration of integrity risk prevention into business risk management. This ensures the normalization of integrity
·Lead: Discipline Inspection Office Secretary risk identification and resolution. In 2024 we comprehensively reviewed integrity risk points and expanded the scope of the "Integrity
Adm下ini设str办ati公ve室 Office ·Members: Heads of Party Committee Office SupervisionOffice HR
Dept. Budget Dept. Audit Dept. Legal Dept Risk Prevention and Control Manual" to cover business units. We strengthened the integrity risk management for front-line business
operations and urged subsidiary second- and third-tier investment companies to establish relevant systems for integrating integrity
risk prevention into business risk management.
115 116Xindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
We fully leverage various forms of supervision—including intra-Party oversight dedicated supervisory bodies functional oversight
audit supervision and public supervision—to continuously improve our supervisory system and ensure comprehensive oversight
of integrity risk prevention efforts. By combining regular self-assessments with periodic inspections and dynamic supervision with
integrated evaluations we enhance the effectiveness of our monitoring enabling early detection and timely prevention of integrity
risks.In 2024
*We formulated the Implementation Measures on Deepening the “1+X” Supervision Mechanism promoting coordination and
synergy across various forms of supervision.*We conducted 27 pre-appointment integrity interviews 6 pre-appointment integrity assessments and issued 52 integrity
feedback responses.*We carried out two rounds of routine “1+X” special inspections covering 13 locations and prompting corrective action on 11
issues.*Addressing problems such as private use of public electricity and lack of transparency in EV charging payments we conducted
three rounds of on-site inspections for enterprises equipped with official EVs and charging stations.*We developed the Embedded Supervision and “Clean Enterprise Protection” Program – Tailored Supervision Plan for Key
Projects implementing embedded supervision across major ongoing construction projects.*As part of our key governance initiatives we launched a special campaign to address “irregular official (business) receptions”
further reinforcing supervisory practices in this area.*We carried out a special rectification effort targeting the misuse of overseas project commissions and intermediary fees for
personal gain advancing our anti-corruption efforts abroad and enhancing compliance in international operations.Routine Supervision and Inspection of "Public Electricity Used for Private Charging"
Supplier Integrity Management
We continue to strengthen integrity management for our suppliers striving to jointly uphold a standardized honest and transparent
business environment.In the digital intelligent technology segment the business segment signs a Letter of Integrity Commitment and a Confidentiality
Agreement with shortlisted suppliers while actively promoting the company’s business ethics policies to them clearly
communicating the integrity requirements they are expected to follow.In the automobile dealership segment Xindeco ITG Automobile Group requires suppliers to sign an integrity responsibility agreement
or include integrity responsibility clauses in contracts when conducting competitive negotiations invited tenders and public tenders.Suppliers are asked to proactively cooperate with the company in integrity risk prevention and control. If it is found that a supplier
"1+X" Supervision and Inspections violates the integrity commitment they will be placed on the supplier's negative list.
117 118Xindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
Integrity Accountability Mechanism
Focus on deep coverage to strengthen the integrity defense line in different regions
To strengthen the awareness of responsibility among all employees and prevent various illegal unethical or negligent behaviors we have
established relevant accountability systems and mechanisms. An accountability task force has been set up consisting of leaders from the
We focus on the central theme of "studying Party discipline" and carry out in-depth Party discipline education. We organize
Discipline Inspection Commission Party Committee Office Supervision Office Legal Department Internal Control and Audit Department discipline inspection and supervision cadres to "deliver learning to the door." The company's Discipline Inspection Commission
Human Resources Department and the Trade Union with the Secretary of the Discipline Inspection Commission serving as the leader. conducted a Party discipline education activity on the updated "Regulations on Disciplinary Action of the Communist Party of
The Supervision Office is responsible for the daily operations of the task force. Any interested party can report suspected illegal unethical China" at the Eastern Platform Company covering three platforms in Shanghai with approximately 30 participants in the learning
or negligent actions that have caused losses to the company and the task force can also initiate an accountability investigation directly. If sessions.an investigation confirms that a relevant individual is subject to accountability responsibility will be pursued in accordance with relevant
internal regulations considering the extent of asset losses and the nature of the issues. Possible measures include performance salary
deductions recovery of incentive benefits suspension demotion dismissal or referral to relevant authorities.Innovate in educational methods to reinforce the integrity culture
Report Investigation Solution
We organized the "Strengthen Party Discipline Education and Build a Clean and Honest ITG" themed integrity culture month
activities. We integrated integrity culture into tangible forms and jointly hosted a trunk culture market event with ITG Real Estate
with approximately 220 participants. We also created the "Qinglian Says: Guarding Clear Youth" integrity lecture which won the
second prize in the Xiamen grassroots theoretical lecture competition and the second prize in the third ITG Holding Youth Speech
· The person responsible for · The Accountability Working · The Accountability Working
Contest.reporting the accountability Group shall hold a meeting with Group will propose
behavior such as the in 5 working days after receiving accountability handling
immediate superior of the the accountability report to recommendations which
person involved or the decide whether to initiate an will be submitted to the
heads of relevant functional accountability investigation. company's Party Committee
departments must report to · If the decision is to proceed for review and decision. Leverage red resources to deepen and solidify integrity education
the Accountability Working relevant departments will · In accordance with the
Group within 5 working be designated or a special Company Law and internal
days after discovering any investigation team will be regulations relevant
accountability situation. formed to verify the related accountability procedures will
We organized visits to integrity education bases for new Party members new employees and newly promoted young leaders.· Others may also report to the matters and prepare an be carried out for different We arranged for our disciplinary inspection and supervision staff to visit the Jinbing Village Integrity Museum to learn about its
Accountability Working Group. investigation report. accountable individuals.thousand-year history the stories of the Huang family's clean officials and family culture in order to inherit and promote the
integrity culture of the new era. We also organized a visit for the integrity officers and Party members in the Fuzhou region to the
Zuohai Qingfeng Study Center where they participated in the "Study Party Discipline Promote Integrity Practice Action" themed
Accountability Investigation and Handling Procedures activity. Additionally we arranged for integrity officers and Party members in the Shanghai region to visit the historical exhibition
hall of the West Shanghai Workers' School.Development of Integrity Culture
We place great importance on the development of a clean culture and continually enrich and Organized
innovate the forms and content of integrity education. This is to ensure widespread and effective
integrity education activities
promotion of integrity awareness strengthen the integrity mindset among all employees and 83
create an atmosphere of integrity and righteousness within the company. In 2024 we organized 83
integrity education activities and 14 warning education sessions. We also utilized platforms such as Conducted
Specialized Learning and Education on Correcting Specialized Learning and Education on Specialized Learning on Correcting "New Image
the company’s WeChat official account internal OA LED screens and videos to release 88 pieces 14warning education sessions Irregular Training Practices Correcting Wasteful Spending Public Funds for Project" IssuesExtravagance and Hedonism Issues
of work updates policy interpretations and warning cases reaching 100% of our employees.
119120
Highlight Highlight HighlightXindeco 2024 Sustainability Report Risk and Compliance Management Business Practices Governance
Anti-Unfair Competition Complaint Mechanism and Whistleblower Protection
We strictly adhere to the relevant laws and regulations on anti-unfair competition in both our home country and the countries or We outline our proactive attitude and stance towards
regions where we operate. We firmly oppose unfair competition and other actions that disrupt market order consistently upholding complaints and reports from employees and other Complainants can lodge complaints and reports anonymously or with
integrity in our operations and actively maintaining a free fair and honest market competition environment. In 2024 we have not stakeholders in the "Anti-fraud System" with clear identification through the following channels:
been involved in any lawsuits or administrative penalties due to unfair competition practices. provisions regarding the channels for complaints the
handling of complaints and reporting procedures. For ·Complaint Hotline:
any suspected violations of business ethics we encourage
0592-5608195
employees and other stakeholders to lodge complaints and
provide feedback through hotlines email letters or other ·Complaint Email:
Tax Compliance means in order to collectively uphold an environment csq@xindeco.com.cn
of integrity fairness and impartiality in business. The ·Mailing Address:
Supervision Office is responsible for managing the hotline
We consistently uphold the bottom line of tax compliance strictly adhering to the "Enterprise Income Tax Law of the People's Republic of Unit 1101 Block A ITG Center No. 4688 Xianyue Road
email and postal complaints receiving complaints and
China" and other relevant tax regulations in both our home country and the regions where we operate. We are committed to maintaining Huli District Xiamen City
reports from employees and other stakeholders whether
the legality transparency and stability of our tax practices ensuring that our tax management aligns with business development and
fulfilling our tax obligations in accordance with the law providing a solid foundation for the company's long-term and stable growth. anonymously or with identification and promptly reporting
them to the management or the board of directors.We follow the "Internal Control Management Manual" and identify and manage potential tax risks in our operations according to internal
control processes. We focus on key risk points implement effective countermeasures and ensure compliance with tax obligations
In addition we have developed the "Network Reflection Platform
effectively preventing and managing tax risks. We have established a regular communication mechanism with tax authorities in the
regions where we operate engaging in consultations and exchanges on tax policies regulations and practical matters to ensure legal for Clue of Problem" and the "Feedback Platform for Opinions and
and compliant tax practices. Through compliant tax management we actively foster harmonious relationships with tax authorities Suggestions" as important channels for internal employees to report
shareholders partners and society contributing to the optimization and enhancement of the tax environment. issues and provide suggestions. Through effective integration of
supervisory forces and information resources we gradually achieve
In 2024 we signed a joint development agreement with the relevant departments of the tax authority and conducted tax compliance real-time online collection of problem clues and feedback online
training for our finance and tax personnel. This initiative strengthened the interaction between the company and the tax authorities and
classification and processing and offline supervision and rectification
helped enhance the overall tax management level within the company.forming a standardized convenient and efficient pattern of normalized
supervision.At the same time we also attach great importance to the protection
of complainants. Protection measures for complainants are clearly
stipulated in the "Anti-Fraud System". We strictly implement a
In 2024 confidentiality mechanism for complaints and reports and relevant
personnel are prohibited from disclosing any information about
we paid a total of complainants or the content of complaints and reports to any
249582.10 department or individual without authorization. Any form of illegal
thousand RMB in taxes discrimination or retaliation against complainants is strictly prohibited.and no tax violations Personnel found to have leaked information about complainants or
occurred. engaged in retaliatory actions against complainants will face dismissal
or termination of their labor contracts. If their actions violate the law
they will be referred to judicial authorities for legal proceedings.Tax Credit Evaluation and Restoration Specialized Training
121 122Xindeco 2024 Sustainability Report Appendix
Data Overview
Environment Environment
Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024
Enviromental Investment Domestic waste recycled Ton 157.69 162.71 163.81
Annual total environmental investment Ten-thousand RMB 139.67 178.41 125.63 Energy Consumption
Environmental Management Electricity consumption 43804658.56 48491667.63 46248893.78
kWh
Annual number of environmental emergency
drills Times / 45 41 Including: Green electricity consumption / 848721.08 823388.80
kWh/ hundred-mil-
Emissions and Discharge Electricity consumption density lion RMB of operating 46600.40 67782.43 105626.01
revenue
GHG
Natural gas consumption m3 0 170.12 0
Scope 1 – Direct GHG emissions 1594.00 1560.13 1445.97
Liquefied petroleum gas consumption Ton 1.44 0 0
Scope 2 – Indirect GHG emissions from pur-
chased energy tCO2e 24981.80 27170.77 24375.33 Gasoline consumption 313390.51 426323.85 372817.75
Total GHG emissions (Scope 1+ Scope 2) 26575.80 28730.90 25821.30
Diesel consumption (mobile sources) Litre 228102.03 220373.50 204445.83
tCO2e /hundred-mil-
Emission intensity lion RMB of operating 28.27 40.16 58.97 Diesel consumption (stationary sources) 100.00 0 0
revenue
Air Pollutants Water Resources
PM emissions Ton 0.40 0.03 0.03 Water withdrawal in water-stressed regions / 0 0
Wastewater and Related Water withdrawal m3 / 336713.77 517729.88
Total wastewater discharges 21645.32 59312.62 56120.20 Water consumption / 277401.14 461609.68
m3/ hundred-million
Including:Discharged into surface water m3 3312.00 5600.00 5563.00 Water consumption density RMB of operating / 387.76 1054.25
revenue
Discharged to sewage treatment plant 18333.32 53712.62 50557.20
Waste
Hazardous Waste
Hazardous waste generated 660.17 686.56 689.49
Ton
Transfer and disposal volume of hazardous
waste 660.17 686.56 689.49
General Waste
General waste generation 1960.70 1165.23 802.91
Including: Industrial waste generated 377.05 821.85 485.54
Domestic waste generated Ton 1583.65 343.38 317.37
General waste recycled 243.64 230.36 254.35
Including: Industrial waste recycled 85.95 67.65 90.54
123 124Xindeco 2024 Sustainability Report Appendix
Employment Employment
Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024
Employee Composition Number of employees in STEM (Science Tech-
nology Engineering and Mathematics) positions / 105 118
Person
Total employees 4045 4326 3998 Number of female in STEM (Science Technology
Engineering and Mathematics) positions / 16 26
Including:Full-time employee / 4326 3998 Proportion of female in STEM (Science Technol-
ogy Engineering and Mathematics) positions % / 15.24 22.03
Person
Part-time employee / 0 0 Employee Composition by Nationality
Non-employee workers / 0 0 China 4041 4323 3993
Person
Employee Composition Others 4 3 5
Employee Composition by Gender Employee Composition by Ethnic
Male 2518 2782 2479 Han / 4189 3853
Person Person
Female 1527 1544 1519 Other / 137 145
Employee Composition by Age Employment of Local Employees
Under 30 1344 1387 1151 Number of employees locally hired within the
province Person 3223 2665 2570
Between 30-50 Person 2554 2829 2716 Proportion of employees locally hired within the
province % 79.68 61.60 64.28
Over 50 147 110 131 Number of female employees locally hired within
the province Person 1203 1006 1006
Employee Composition by Education Proportion of female employees locally hired
within the province % 78.78 65.16 66.23
Masters degree and above 132 148 147 Number of male employees locally hired within
the province Person 2020 1659 1564
Bachelors degree Person 1071 1164 1146 Proportion of male employees locally hired
within the province % 49.94 38.35 39.12
Other degrees 2842 3014 2705 Number of senior management locally hired
within the province Person / 8 7
Employee Composition by Function Proportion of senior management locally hired
within the province % / 100.00 100.00
Production personnel 1115 1477 1438 Number of female senior management locally
hired within the province Person / 1 1
Sales personnel 905 960 893 Proportion of female senior management locally
hired within the province % / 100.00 100.00
Technical personnel 1167 1011 837 Employment of Disabled Individuals
Financial personnel 351 373 348 Number of disabled employees hired Person 5 5 4
Administrative personnel 507 505 482 Propotion of disabled employees hired % 0.12 0.12 0.10
Person
Female production personnel 485 499 573 Management Composition by Gender
Female sales personnel 328 356 413 Management personnel / 170 172
Person
Female technical personnel 161 132 28 Including:Female management personnel / 49 54
Female financial personnel 291 309 294 Proportion of female management personnel % / 28.82 31.40
Female administrative personnel 232 248 211 Senior management personnel Person / 8 7
125 126Xindeco 2024 Sustainability Report Appendix
Employment Employment
Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024
Including: Female senior management person-
nel Person / 1 1 Employee Training by Type
Proportion of female senior management per-
sonnel % / 12.50 14.29 Total hours of online training / 1302.00 4237.00
Mid-level management personnel / 49 44 Total hours of on-the-job coaching / 2618.00 2400.00
Person
Including: Female mid-level management per-
sonnel / 17 15 Total hours of leadership training / 2814.00 1794.00
Proportion of Female mid-level management
personnel % / 34.69 34.09 Total hours of other types of training / / 300.00
Junior management personnel / 113 121 Total hours of professional skills training / 69990.00 54238.00
Person
Including: Female junior management personnel / 31 38 Total hours of cultural competency training / 6870 .00 360.00
Proportion of female junior management per-
sonnel % / 27.43 31.40 Average training hours per female employee / 20.00 16.88
Management personnel in revenue-generating
departments / 103 96 Average training hours per male employee Hour / 18.00 15.20
Person
Including:Female management personnel in
revenue-generating departments / 19 20 Average training hours per employee under 30 / 17.30 15.90
Proportion of female management personnel in Average training hours per employee between
revenue-generating departments % / 18.45 20.83 30-50 / 28.17 16.10
Labor Contract Signing Average training hours per employee over 50 / 12.50 9.93
Employees with signed labor contracts Person 4045 4326 3998 Average training hours per junior mangement personnel / 15.47 64.00
Labor contract signing rate % 100.00 100.00 100.00 Average training hours per mid-level mangement personnel / 18.50 58.00
Support for Employee Career Planning and Job Changes Average training hours per senior mangement personnel / 24.00 107.70
Number of internal transfers or internal job
applicants Person / 180 138 Average training hours per Chinese personnel / 19.32 15.86
Proportion of internal transfers or internal job
applicants % / 4.16 3.45 Employee Performance
Proportion of employees undergoing regular
Employee Training performance and career development assess- % / 100.00 100.00
ments
Total annual investment in employee training Ten-thousand RMB 189.34 186.37 216.07
Freedom of Association and Collective Bargaining1
Total number of employees trained Person 4045 4326 3998
Total number of employees in trade union Person / 2271 2051
Average training cost per employee Ten-thousand RMB / 0.04 0.05 Proportion of employees covered by collective
agreements Person / 2271 2051
Number of female employees trained 1527 1544 1519
Person Human Rights Impact Assessment
Number of male employees trained 2518 2782 2479 Number of operational sites at risks of freedom
of association and collective bargaining rights / 0 0
Proportion of female employees trained 100.00 100.00 100.00 Number of operational sites at significant risks of
% child labor incidents Count / 0 0
Employee training coverage rate 100.00 100.00 100.00 Number of operational
sites at significant risks of forced or compulsory / 0 0
Total number of employee training sessions Times / / 233 labor incidents
Total training participants Participant / 21917 23498
Total employee training hours 12135.00 83593.50 63329
Hour
Average training hours per employee 3.00 19.32 15.84 Note 1: Data on freedom of association and collective bargaining only includes operations located in Xiamen.
127 128Xindeco 2024 Sustainability Report Appendix
Security Practice Market
Number of security personnel trained in human
rights policies or procedures / 30 98
Number of security personnel employed by the Metrics Unit 2022 2023 2024
company Person / 5 10
Number of third-party security personnel / 25 88 Proportion of highly satisfied customers % / / 95.00
Proportion of security personnel trained in Technology Research and Development
human rights policies or procedures % / 100.00 100.00
Total R&D investment amount in technology Ten-thousand RMB 5413.24 5481.78 4567.95
Ratio of R&D investment to revenue from core
businesses % / / 0.10
Market
Number of R&D personnel Person / / 79
Metrics Unit 2022 2023 2024 Proportion of R&D personnel % / / 1.98
Intellectual Property
Incidents of Non-compliance Affecting the Safety and Quality of Products and Services
Number of invention patents applied to the core
Total number of incidents of non-compliance businesses / / 19
affecting the safety and quality of products and Case / / 0
services Number of new patent applications / / 41
Amount of damages from major liability
accidents affecting the safety and quality of Ten-thousand RMB / / 0
products and services Number of new patents granted / / 21
Incidents of Non-compliance Related to Product and Service Information and Labeling Number of new copyright applications / / 29
Total number of incidents of non-compliance
related to product and service information and Case / / 0 Number of new copyright registrations Item / / 35
labeling
Incidents of Non-compliance Related to Marketing Communications Number of new intellectual property rights / / 56
Total number of incidents of non-compliance Total number of granted patents / / 235
related to marketing communications Case / / 0
Information Security and Privacy Protection Total number of registered copyright / / 131
Information security incident 0 0 0 Total number of registered trademarks / / 135
Case
Number of incidents involving personal identity
information breaches / / 0
Suppliers
Proportion of incidents involving personal % / / 0 Regional Distribution
identity information breaches
Number of customers affected by data breaches Person / 0 0 Total number of suppliers 3055 4247 5176
Number of suppliers in the province where the
Number of employees affected by data breaches Person / 0 0 company is located 459 877 1174
Incidents of customer privacy violations Case / 0 0 Number of suppliers in Mainland China 2584 3792 4690
Complaints Received and Complaint Resolution Number of suppliers in other regions Count / 455 486
Total number of complaints / 114 66 Number of tier-1 suppliers / 1658 1741
Case
Total number of resolved complaints / 106 63 Number of tier-2 suppliers / 2484 2315
Complaint resolution rate % 95.28 92.98 95.45 Number of key suppliers / 47 40
Customer Satisfaction Supplier Audit
Number of participants in customer satisfaction / 25324 26171 Number of new suppliers admitted in the year 789 855 369surveys
Person Number of new suppliers selected via social
Number of highly satisfied customers / / 24864 performance metrics Count / 14 58
Number of new suppliers selected via environ-
mental performance metrics / / 7
129 130Xindeco 2024 Sustainability Report Appendix
Market Occupational Health and Safety
Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024
Total number of suppliers evaluated through / 301 45 Coverage rate of workers' compensation insur-desk research ance % / 100.00 100.00
Total number of suppliers audited on-site / 35 30 Safety Training
Number of suppliers audited in the year / / 50 Total participants in occupational health and
safety training Particpant 2228 3563 3710
Number of key suppliers audited in the year / 38 9 Total occupational health and safety training
hours Hour 4036.00 5344.50 5565.00
Count
Number of suppliers assessed with significant
actual/potential negative impacts / / 2 Total number of people receiving safety training Person 1489 1237 1559
Number of suppliers terminated due to
significant actual/potential negative impacts / / 1 Proportion of people receiving safety training % 36.81 28.59 38.99
Number of suppliers completing improvements
after evaluation / 2 0 Total number of female receiving safety training Person 566 446 577
Number of potential suppliers excluded in 2024
due to non-compliance with social responsibility / / 4 Proportion of female receiving safety training % 38.01 36.05 37.01
Supplier ESG Training Number of safety emergency drills Times 29 44 34
Total number of suppliers participating in the
supplier capacity-building program / / 4 Number of attendees for safety emergency drills Participant / 923 884
Total number of key suppliers participating in
the supplier capacity-building program Count / / 4 Number of offline safety training sessions Session 64 84 81
Number of suppliers participating in ESG training / / 4 Number of online safety training courses Course 44 15 15
Total number of suppliers' ESG training
participants Participant / / 18 Work Safety Accident
Total duration of suppliers' ESG training Hour / / 27 Extra-major accident 0 0 0
Procurement Pactices Major accident 0 0 0
Case
Proportion of company expenditure on suppliers
in the province where it operates % / 8.98 15.69 Serious accident 0 0 0
Supplier Human Rights Impact Assessment General accident 0 0 0
Number of suppliers at risks of freedom of
association and collective bargaining rights / / 0 Number of work stoppages Times 0 0 0
Number of suppliers at significant risks of child
labor incidents Count / / 0 Duration of work stoppages Day 0 0 0
Number of suppliers at significant risks of forced
or compulsory labor incidents / / 0 Occupational Health and Safety Performance
Occupational injuries 0 0 0
Person
Occupational fatalities 0 0 0
Occupational Health and Safety Occupational fatality rate % 0 0 0
Total duration of occupational injury losses Hour 0 0 0
Metrics Unit 2022 2023 2024
Total number of occupational injury incidents Case 0 0 0
Work Safety Input
Total Recordable Injury Frequency Rate (TRIFR) - 0 0 0
Total annual input in occupational health and Employees
work safety / 307.54 324.59 /Lost Time Injury Frequency Rate (LTIFR) - Em- 0 0 0
Total annual investment in production safety ployees
liability insurance Ten-thousand RMB / / 0.6 Total number of contractor occupational injury
Investment amount in workers' compensation incidents
Case 0 0 0
insurance / 99.54 124.93
131 132Xindeco 2024 Sustainability Report Appendix
Occupational Health and Safety Governance
Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024
Total duration of occupational injury losses for Business Ethics
contractors Hour 0 0 0
Total Recordable Injury Frequency Rate (TRIFR) - Anti-corruption Advocacy and Training
Contractors 0 0 0
/
Lost Time Injury Frequency Rate (LTIFR) - Con- Proportion of board members supervisors and
tractors 0 0 0 senior management briefed on anti-corruption / 100.00 100.00
policies and procedures
Proportion of employees briefed on anti-corrup-
tion policies and procedures / 100.00 100.00
%
Proportion of board members supervisors and
senior management received anti-corruption / 100.00 100.00
Community training
Proportion of employees received anti-corrup-
tion training / 100.00 100.00
Metrics Unit 2022 2023 2024 Business Ethics Violations
Volunteer Service Conflict of interest incidents / 0 0
Number of volunteer service events Times / 110 65 Money laundering or insider trading incidents Case / / 0
Lawsuits or administrative penalties resulting
Total number of volunteers Person / 434 325 from unfair competition incidents / 0 0
Total number of volunteer service participants Participant 1694 518 743
Total volunteer service hours 4553.00 921.00 1135.00
Hour
Average volunteer hours per employee / / 3.49
Number of environmental public welfare activi-
ties Times / 5 1
Indigenous Rights
Number of incidents infringing indigenous rights
in operational locations Case / 0 0
National Strategy Response
Industrial transformation / 680.53 882.23
Ten-thousand RMB
Total trade volume with Belt and Road Countries / / 49226
Rural Revitalization
Investment in rural revitalization Ten-thousand RMB / 42.93 98.70
Number of people benefiting from rural revital-
ization Person / / 3053
Local Community
Number of ongoing operational sites / / 2
Count
Total number of operational sites / / 48
133 134Xindeco 2024 Sustainability Report Appendix
Guidelines No. 17 of Shenzhen Stock SASB Index
Exchange for the Self-Regulation of Listed Companies -
Sustainability Report (Trial)
SASB Topics Accounting Metrics Location
Topic Clause Location CG-MR-130a.1：
Energy Management in (1) Total energy consumed Energy Utilization
Retail & Distribution (2) Percentage grid electricity Data Overview
Chapter III Environmental Disclosure (3) Percentage renewable energy
Climate Response Article 21-28 Climate Response CG-MR-230a.1：
Discussion of management approach to identifying and Data Security and Customer Privacy
Pollutant Discharge Article 30 Pollutant Discharge addressing data security risks
Data Security CG-MR-230a.2：
Waste Disposal Article 31 Waste Disposal (1) Number of data security breaches Data Security and Customer Privacy
(2) Percentage involving customers’personally identifiable
Data Overview
Ecosystem and Biodiversity Protection Article 32 Ecosystem and Biodiversity Protection information (PII)(3) Number of customers affected
CG-MR-310a.1：
Environmental Compliance Management Article 33 Environmental Compliance Management (1) Average hourly wage
(2) Percentage of in-store employees earning minimum wage Not Applicable
Energy Utilization Article 35 Energy Utilization by region
CG-MR-310a.2：
Water Resource Utilization Article 36 Water Resource Utilization
Fair Labor Practices Employee turnover rate for in-store employees(1) Voluntary Not Applicable
Circular Economy Article 37 Circular Economy (2) Involuntary
Chapter IV Social Disclosure Amount of legal and regulatory fines and settlements associated with labor law violations Not available in this report
Rural Revitalization Article 39 Rural Revitalization CG-MR-330a.1：
Percentage of gender and racial/ethnic group representation
Social Contributions Article 40 Social Contributions for Data Overview
(1) Management
Workforce Diversity & (2) All other employees
Innovation Article 42 Innovation-driven Development Inclusion
CG-MR-330a.2：
Ethics of Science and Technology Article 43 Not Applicable Amount of legal and regulatory fines and settlements Not Applicable
associated with employment discrimination
Supply Chain Security Article 45 Responsible SourcingSupply Chain Security CG-MR-410a.1：
Revenue from products third-party certified to environmental Not available in this report
and/or social sustainability standards
Equal Treatment of SMEs Article 46 Equal Treatment of SMEs
Product and Service Safety and Quality Article 47 Product and Service Safety and Quality CG-MR-410a.2：Description of processes to assess and manage risks and/or GHG Emission Reduction Actions
hazards associated with chemicals in products Responsible Sourcing
Data Security and Customer Privacy Article 48 Data Security and Customer Privacy
Product sourcing CG-MR-410a.3：
Employees Article 50 Employees Packaging and Description of strategies to reduce the environmental impact Waste Disposal
Marketing of packaging
Chapter V Disclosure of Corporate Sustainability-Related Governance Information
CG-MR-000.A：
Management of Material Matters (1) Number of retail locations Not available in this report
Climate-Related Risks Opportunities and (2) Number of distribution centers
Due Diligence Article 52 Financial Impacts
Responsible Sourcing CG-MR-000.B：
Supply Chain Security (1) Retail space Not available in this report
(2) Distribution centers
Stakeholder Engagement Article 53 Stakeholder Engagement
Anti-Commercial Bribery and Anti- Anti-Commercial Bribery and Anti-
Corruption Article 55 Corruption
Fair Competition Article 56 Anti-Unfair Competition
135 136Xindeco 2024 Sustainability Report Appendix
ESRS Index
European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission
Anticipated financial effects from material physical Climate-Related Risks Opportunities and Financial
ESRS 2 General Disclosures E1-9 and transition risks and potential climate-related Impacts
opportunities Management of Material Matt
BP-1 General basis for the preparation of sustainability statements About This Report ESRS E2 Pollution
BP-2 Disclosures in relation to specific circumstances Not Applicable Wastewater Discharge Management
E2-1 Policies related to pollution Air Emissions Management
GOV-1 The role of the administrative management and Governance Structure and Mechanisms Waste Disposalsupervisory bodies Governance Structure and Mechanisms Wastewater Discharge Management
Information provided to and sustainability matters E2-2 Actions and resources related to pollution Air Emissions Management
GOV-2 addressed by the undertaking’s administrative Governance Structure and Mechanisms Waste Disposal
management and supervisory bodies Risk and Compliance Management
E2-3 Targets related to pollution Environmental
GOV-3 Integration of sustainability-related performance in Governance Structure and Mechanismsincentive schemes Occupational Health and Safety Wastewater Discharge Management
Management of Material Matters E2-4 Pollution of air water and soil Air Emissions Management
Climate-Related Risks Opportunities and Financial Waste Disposal
GOV-4 Statement on due diligence Impacts Wastewater Discharge Management
Responsible Sourcing
E2-5 Substances of concern and substances of very high Air Emissions ManagementSupply Chain Security concern Waste Disposal
Circular Economy
GOV-5 Risk management and internal controls over
Risk and Compliance Management
sustainability reporting Climate-Related Risks Opportunities and Financial Anticipated financial effects from pollution-related Impacts E2-6 impacts risks and opportunities Not Applicable
Climate Strategy
SBM-1 Strategy business model and value chain Responsible Sourcing ESRS E3 Water and Marine Resources
Supply Chain Security
SBM-2 Interests and views of stakeholders Stakeholder Engagement E3-1 Policies related to water and marine resources Water Resources Utilization
Management of Material Matters E3-2 Actions and resources related to water and marine Water Resources Utilization
SBM-3 Material impacts risks and opportunities and their Risk and Compliance Management
resources
interaction with strategy and business model Climate-Related Risks Opportunities and Financial
Impacts E3-3 Targets related to water and marine resources Environmental
IRO-1 Description of the processes to identify and assess Management of Material Mattersmaterial impacts risks and opportunities Risk and Compliance Management E3-4 Water consumption Data Overview
IRO-2 Disclosure requirements in ESRS covered by the
About This Report
undertaking’s sustainability statement Management of Material Matters E3-5
Anticipated financial effects from water and marine
Index resources-related impacts risks and opportunities
Not Applicable
ESRS E1 Climate Change ESRS E4 Biodiversity and Ecosystems
Transition plan and consideration of biodiversity and
E1-1 Transition plan for climate change mitigation Climate Strategy E4-1 ecosystems in strategy and business model Not Applicable
E1-2 Policies related to climate change mitigation and E4-2 Policies related to biodiversity and ecosystems Ecosystem and Biodiversity Protectionadaptation Climate Strategy
Actions and resources in relation to climate change Climate Response E4-3 Actions and resources related to biodiversity and E1-3 Ecosystem and Biodiversity Protectionpolicies Circular Economy ecosystems
E1-4 Targets related to climate change mitigation and Climate-related Metrics and Targets E4-4 Targets related to biodiversity and ecosystems Environmentaladaptation
Impact metrics related to biodiversity and ecosystems
E1-5 Energy consumption and mix Energy Utilization E4-5 change Not ApplicableData Overview
Anticipated financial effects from biodiversity and
E1-6 Gross Scopes 1 2 3 and Total GHG emissions GHG Emissions Management E4-6Data Overview ecosystem-related risks and opportunities
Not Applicable
E1-7 GHG removals and GHG mitigation projects financed Not Applicable ESRS E5 Resource Use and Circular Economythrough carbon credits
E5-1 Circular Economy Policies related to resource use and E1-8 Internal carbon pricing Not Applicable circular economy Circular Economy
137 138Xindeco 2024 Sustainability Report Appendix
European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission
E5-2 Circular Economy Actions and resources related to Circular Economy S2-2 Processes for engaging with value chain workers about resource use and circular economy impacts Responsible Sourcing
E5-3 Circular Economy Targets related to resource use and Environmental S2-3 Processes to remediate negative impacts and channels circular economy for value chain workers to raise concerns Responsible Sourcing
Taking action on material impacts on value chain
E5-4 Resource inflows Circular Economy
S2-4 workers and approaches to managing material risks and pursuing material opportunities related to value chain Responsible Sourcing
E5-5 Resource outflows Circular Economy workers and effectiveness of those action
Targets related to managing material negative impacts
Circular Economy Anticipated financial effects from S2-5 advancing positive impacts and managing material risks Suppliers and Customers
E5-6 resource use and circular economy-related impacts Not Applicable and opportunities
risks and opportunities
ESRS S3 Affected Communities
ESRS S1 Own Workforce
S3-1 Policies related to affected communities Social Contributions
S1-1 Policies related to own workforce Employees
S3-2 Processes for engaging with affected communities about
S1-2 Processes for engaging with own workforce and Employee impacts
Social Contributions
workers’ representatives about impacts Communication
S3-3 Processes to remediate negative impacts and channels
S1-3 Processes to remediate negative impacts and channels Employee for affected communities to raise concerns
Social Contributions
for own workforce to raise concerns Communication
Taking action on material impacts on affected
Taking action on material impacts on own workforce communities and approaches to managing material Rural Revitalization
S1-4 and approaches to managing material risks and pursuing
S3-4
Employees risks and pursuing material opportunities related to Social Contributionsmaterial opportunities related to own workforce and affected communities and effectiveness of those actions
effectiveness of those actions Targets related to managing material negative impacts
Targets related to managing material negative impacts S3-5 advancing positive impacts and managing material risks Social
S1-5 advancing positive impacts and managing material risks Employees and opportunities
and opportunities
Equal Employment ESRS S4 Consumers and End-usersS1-6 Characteristics of the undertaking’s employees Data Overview
Characteristics of non-employees in the undertaking’s S4-1 Policies related to consumers and end-users
Product and Service Safety and Quality
S1-7 Data Security and Customer Privacyown workforce Data Overview
S4-2 Processes for engaging with consumers and end-users Product and Service Safety and Quality
S1-8 Collective bargaining coverage and social dialogue Employee Communication about impacts Data Security and Customer PrivacyData Overview
S4-3 Processes to remediate negative impacts and channels Product and Service Safety and Quality
S1-9 Diversity metrics Equal Employment for consumers and end-users to raise concerns Data Security and Customer PrivacyData Overview
Taking action on material impacts on consumers and
S1-10 Adequate Wages Employee Compensation and Benefits end-users and approaches to managing material
S4-4 risks and pursuing material opportunities related to Product and Service Safety and Quality
consumers and end-users and effectiveness of those Data Security and Customer Privacy
S1-11 Social protection Employee Compensation and Benefits actions
Targets related to managing material negative impacts
S1-12 Persons with disabilities Data Overview S4-5 advancing positive impacts and managing material risks Product and Service Safety and Quality
and opportunities
S1-13 Training and skills development metrics Employee TrainingData Overview ESRS G1 Business Conduct
S1-14 Health and safety metrics Occupational Health and SafetyData Overview G1-1 Business conduct policies and corporate culture Business Practices
S1-15 Work-life balance metrics Employee Compensation and Benefits Responsible Sourcing
G1-2 Management of relationships with suppliers Supply Chain Security
Equal Treatment of SMEs
S1-16 Remuneration metrics (pay gap and total remuneration) Not available in this report
G1-3 Prevention and detection of corruption and bribery Anti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower Protection
S1-17 Incidents complaints and severe human rights impacts Data Overview
G1-4 Incidents of corruption or bribery Anti-Commercial Bribery and Anti-CorruptionData Overview
ESRS S2 Workers in the Value Chain
G1-5 Political influence and lobbying activities Not Applicable
S2-1 Policies related to value chain workers Responsible Sourcing
G1-6 Payment practices Equal Treatment of SMEs
139 140Xindeco 2024 Sustainability Report Appendix
ISDS Index IFRS S2
Core Elements Disclosure Recommendations Disclosure Placement
a) The governance body(s) (which can include a board committee or
IFRS S1 equivalent body charged with governance) or individual(s) responsible for
Governance Structure and Mechanisms
oversight of climate-related risks and opportunities. Risk and Compliance Management
Governance
b) Management’s role in the governance processes controls and
Core Elements Disclosure Recommendations Disclosure Placement procedures used to monitor manage and oversee climate-related risks Governance Structure and Mechanisms
and opportunities Risk and Compliance Management
a) The governance body(s) (which can include aboard committee or
equivalent body charged with governance) or individual(s) responsible for Governance Structure and Mechanisms a) The climate-related risks and opportunities that could reasonably be
oversight of sustainability-related risks and opportunities. Risk and Compliance Management expected to affect the entity’s prospects within time horizons—short
Management of Material Matters
medium or long term whether the entity considers the risk to be a climate- Climate-Related Risks Opportunities and Governance
related physical risk or climate-related transition risk Financial Impacts
b) Management’s role in the governance processes controls and
procedures used to monitor manage and oversee sustainability-related Governance Structure and Mechanisms
risks and opportunities. Risk and Compliance Management b) The current and anticipated effects of climate-related risks and
opportunities on the entity’s business model and value chain and where Management of Material Matters
in the entity’s business model and value chain climate-related risks and Climate-Related Risks Opportunities and
a) The sustainability-related risks and opportunities that could reasonably Management of Material Matters opportunities are concentrated
Financial Impacts
be expected to affect the entity’s prospects within the time horizons— Climate-Related Risks Opportunities and
short medium or long term. Financial Impacts c) Information about how the entity has responded to and plans to respond
to climate-related risks and opportunities in its strategy and decision- Management of Material Matters
making including how the entity sets targets how the entity is resourcing Climate-Related Risks Opportunities and
b) The current and anticipated effects of sustainability-related risks and Management of Material Matters and quantitative and qualitative information about the disclosed progress Financial Impactsopportunities on the entity’s business model and value chain and of plans.where in the entity’s business model and value chain sustainability- Climate-Related Risks Opportunities and
related risks and opportunities are concentrated Financial Impacts d) The quantitative and qualitative effects of those climate-related risks and
opportunities on the entity’s financial position financial performance
c) How the entity has responded to and plans to respond to sustainability- Strategy and cash flows for the reporting period the climate-related risks and
related risks and opportunities in its strategy and decision-making and opportunities identified in paragraph 16(a) for which there is a significant
the progress against plans the entity has disclosed in previous reporting Management of Material Matters risk of a material adjustment within the next annual reporting period to the Management of Material Matters
periods including quantitative and qualitative information and trade- Climate-Related Risks Opportunities and carrying amounts of assets and liabilities reported in the related financial
offs between sustainability-related risks and opportunities that the entity Financial Impacts statements and how the entity expects its financial position financial
Strategy considered. performance and cash flows to change over the short medium and long
d) The quantitative and qualitative effects of sustainability-related risks and term given its strategy to manage climate-related risks and opportunities.opportunities on the entity’s financial position financial performance
and cash flows for the reporting period and the sustainability-related e) The entity’s assessment of its climate resilience including the entity’s
risks and opportunities identified for which there is a significant risk of assessment for its strategy and business model the significant areas of
a material adjustment within the next annual reporting period to the uncertainty considered in the entity’s assessment of its climate resilience
carrying amounts of assets and liabilities reported in the related financial Management of Material Matters and the entity’s capacity to adjust or adapt its strategy and business
model to climate change over the short medium and long term. The entity Management of Material Mattersstatements and how the entity expects its financial position financial
performance and cash flows to change over the short medium and shall use climate-related scenario analysis to assess its climate resilience
Climate-Related Risks Opportunities and
long term given its strategy to manage sustainability-related risks and and disclose how and when the climate-related scenario analysis was
Financial Impacts
opportunities. carried out including information about the inputs the entity used the key
assumptions the entity made in the analysis and the reporting period in
which the climate-related scenario analysis was carried out.e) The resilience of the entity’s strategy and its business model to those Management of Material Matters
sustainability-related risks Climate-Related Risks Opportunities and a) The processes and related policies the entity uses to identify assess Financial Impacts prioritize and monitor climate-related risks including information
about: the inputs and parameters the entity uses whether and how the Management of Material Matters
a) The processes and related policies the entity uses to identify assess entity uses climate-related scenario analysis to inform its identification Climate-Related Risks Opportunities and
prioritize and monitor sustainability-related risks including information of climate-related risks whether and how the entity prioritizes climate- Financial Impacts
about: the inputs and parameters the entity uses，whether and how the Management of Material Matters related risks how the entity assesses the nature likelihood and Risk and Compliance Managemententity uses scenario analysis to inform its identification of sustainability- Climate-Related Risks Opportunities and magnitude of the effects of those risks
related risks whether and how the entity prioritizes sustainability-related Financial Impacts
risks how the entity assesses the nature likelihood and magnitude of the Risk and Compliance Management Risk Management b) The processes the entity uses to identify assess prioritize and monitor
effects of those risks. climate-related opportunities including information about whether
Management of Material Matters
and how the entity uses climate-related scenario analysis to inform its Climate-Related Risks Opportunities and
Risk Management Financial Impactsb) The processes the entity uses to identify assess prioritize and monitor identification of climate-related opportunities.sustainability-related opportunities including: whether and how the Management of Material Matters
entity uses scenario analysis to inform its identification of sustainability- Climate-Related Risks Opportunities and Financial Impacts c) The extent to which and how the processes for identifying assessing Climate-Related Risks Opportunities and related opportunities. prioritizing and monitoring climate-related risks and opportunities are Financial Impacts
integrated into and inform the entity’s overall risk management process. Risk and Compliance Management
c) The extent to which and how the processes the entity uses to
identify assess prioritize and monitor sustainability-related risks and Climate-Related Risks Opportunities and
opportunities are integrated into and inform the entity’s overall risk Financial Impacts a) The cross-industry metric categories of greenhouse gas emissions
management process. Risk and Compliance Management internal carbon prices the percentage of executive management remuneration recognized in the current period that is linked to climate-
Environmental related considerations capital deployment towards climate-related risks
GHG Emissions Management
a) Metrics required by an applicable IFRS Sustainability Disclosure Standard. Social and opportunities the amount and percentage of assets or business
Governance activities vulnerable to climate-related risks and opportunities.b) Metrics the entity uses to measure and monitor sustainability-related risks Environmental Metrics and Targets b) Industry-based metrics that are associated with one or more particular
Metrics and Targets or opportunities and its performance in relation to that sustainability- Social business models activities or other common features that characterize GHG Emissions Management
related risk or opportunity. Governance participation in an industry.Environmental c) The quantitative and qualitative climate-related targets the entity has set
c) Any targets the entity has set it is required to meet by law or regulation. Social or it is required to meet by law or regulation progress towards reaching Environmental
Governance the target information about its performance and each greenhouse gas Social
emissions target. Governance
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