Stock Code:000701
2025
Sustainability Report
Xiamen Xindeco Ltd.Xiamen Xindeco Ltd.Address: Floor 11 Block A ITG Center No. 4688 Xianyue Road Huli District Xiamen City Fujian Province
Tel：0592-6021666
website：https://www.xindeco.com/2025 Sustainability Report
CONTENTS
01020304
01 About This Report Guidance by Party Lead- Environmental Protection Innovation-Driven and Working Together to
ership and Strengthened for Sustainable Growth Quality-Oriented Approach Create a Better Future
03 Message from Chairman Governance Foundation for Long-Term Success Appendix
05 Sustainable Development
Highlights in 2025 21 Party Building 35 Response to Climate Change 53 Innovation-Driven Development 79 Protection of Employees’ Rights 101 Key Performance
and Interests
23 Corporate Governance 40 Environmental Compliance 60 Product and Service Safety and 107 Indexes
07 About Xindeco Management Quality 90 Occupational Health and Safety
25 Compliant Operation and Risk
Management 43 Pollutant Emissions 67 Data Security and Customer Privacy 97 Community Public Welfare
13 Sustainable Development Protection
Governance 29 Investor Relations Management 47 Resource Utilization Supply Chain Management
and Shareholders’ Rights and 70
Interests 49 Implementation of Green
Operation
31 Business Ethics2025 Sustainability Report
About This Report Explanatory Note
Abbreviation Full Name
This report is the 2025 Sustainability Report of Xiamen Xindeco Ltd. (hereinafter referred to as the “this report”). Adhering to the principles of
objectivity standardization transparency and comprehensiveness this report provides a detailed disclosure of Xindeco’s practices and Xindeco the Company we Xiamen Xindeco Ltd.performance in the areas of environment society and corporate governance in 2025.Xindeco Digital Intelligence Technology Xiamen Xindeco Digital Intelligence Technology Co. Ltd.Xindeco Electronic Information Technology Xiamen Xindeco Electronic Information Technology Co. Ltd.Reporting Scope
Xindeco IoT Xiamen Xindeco IoT Technology Co. Ltd.This report covers Xiamen Xindeco Ltd. as well as its branches subsidiaries and directly affiliated institutions. Unless otherwise specified the Xindeco Optoelectronics Xiamen Xindeco Optoelectronics Co. Ltd.scope is consistent with that of the 2025 Annual Report.Xindeco ITG Automobile Group Xiamen Xindeco ITG Automobile Group Co. Ltd.Xindeco Supply Chain Supply Chain Division of Xiamen Xindeco Co. Ltd.Reporting Period
Xindeco Intelligent IoT Xiamen Xindeco Intelligent IoT Technology Service Co. Ltd.This report covers the period from January 1 2025 to December 31 2025 (the “Reporting Period”). To enhance the comparability and
Shandong Xindeco IoT Shandong Xindeco IoT Applied Technology Co. Ltd.completeness of this report certain contents are appropriately traced back to previous years or include forward-looking statements.ITG Digital Technology Xiamen ITG Digital Technology Co. Ltd.Preparation Basis ITG JD Digital Technology Xiamen ITG JD Digital Technology Co. Ltd.Xindeco Non-Ferrous Metals Non-Ferrous Metals Division of Xiamen Xindeco Co. Ltd.Shenzhen Stock Exchange: Self Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report
(Trial)
Fujian Xindeco Optoelectronics Fujian Xindeco Optoelectronics Co. Ltd.Shenzhen Stock Exchange: Self-Regulatory Guidelines No. 3 for ChiNext Listed Companies of Shenzhen Stock Exchange—Preparation of
Sustainability R eport ( 2026 Revision) Xindeco IoT Malaysia Xindeco IoT Malaysia Sdn.Bhd.China Enterprise Reform and Development Research Association: Guidelines for China Enterprise Sustainable Development Report
Xindeco Tongshang Automobile Xiamen Xindeco Tongshang Automobile Sales & Service Co. Ltd.
(CASS-ESG 6.0)
Global Reporting Initiative: GRI Sustainability Reporting Standards (GRI Standards)(2021 Edition) Xindeco Mining Xiamen Xindeco Mining Resources Co. Ltd.United Nations Sustainable Development Goals (SDGs)
Sustainability Accounting Standards Board (SASB) Standards
Confirmation and Approval
Data Explanation This report has been approved by the Board of Directors of the Company and is published concurrently with the Annual Report. The Board
pledges to exercise oversight over the contents of this report ensuring its absence of any false records or misleading representations and
The data used in this report are sourced from publicly available data of government departments and Xindeco’s administrative documents assuming responsibility for its truthfulness accuracy and completeness.statistical reports and third-party questionnaire surveys and have been compiled reviewed and consolidated by various functional
departments and operating units of the Company.This report doesn’t contain any false records misleading statements or material omissions. Unless otherwise specified all amounts in this
report are expressed in RMB. Access to this Report
You may access and download this report and obtain further information about the Company via the Shenzhen Stock Exchange
(www.szse.cn) and CNINFO (www.cninfo.com.cn).Report Language
This report is published in Chinese with the English version derived from the Chinese version. For any discrepancy between the two
versions the Chinese version shall prevail.
01 022025 Sustainability Report
Message from
Chairman
The year 2025 marked a year in which Xindeco forged ahead amid changes and
strove to overcome difficulties. Faced with shifts of the times industrial challenges and
development opportunities all our staff worked with unity and determination pressing
forward with firm conviction and solid actions forging ahead through difficulties and
leaving solid footprints on the path of sustainable development.Focus on Core Businesses - Enhancing Quality Shared Responsibilities - Fostering Social
and Ef ficiency Value
During the year the four major business segments worked in synergy and achieved breakthrough progress jointly consolidating the foundation We are fully aware that corporate growth is inseparable from the support of society. During the year centering on the core
for high-quality development. principle of “returning to core businesses for development” we strengthened talent development established the Xindeco
Digital Intelligence Industry Research Institute introduced outstanding talent and built an international talent pipeline. Driven by
In the Supply Chain segment Xindeco Non-Ferrous Metals entered the ultra-high-altitude metal ore transportation sector for the first time
the three pillars of “organization talent and learning & development” we improved the “435 Xindeco Star” system stimulated
implementing the procurement project for the Huoshaoyun lead-zinc mine in Xinjiang and establishing a stable direct supply channel for rawvitality through cross-segment job rotations and continuously advanced employer branding receiving honors such as “Bestmaterials. The Chenggang Raw Material Warehouse was put into trial operation achieving efficient circulation through digital systems therebyEmployer 2025” and “ESG Outstanding Enterprise”.enhancing industrial chain coordination efficiency.We actively carried out volunteer services educational support initiatives and rural revitalization programs. For 26 consecutive
In the Digital Intelligence Technology segment organizational restructuring and the streamlining of institutional systems were successfully
years we have implemented the student aid program for Bayi Hope Primary School in Changting Longyan. We established a
completed during the year fostering a shared development consensus and injecting endogenous momentum. Throughout the year 20 new
paired assistance mechanism with Jinbing Village in Xiang’an District to support the development of the village collectivesoftware copyrights were obtained and six products received national-level certifications. Platforms such as the “Phosphorus Source Smarteconomy. Xindeco ITG Automobile Group integrated corporate responsibility into its daily operations through initiatives such asPlatform” were selected as exemplary cases in the “Dingxin Cup” while “e-Lu Protecting Agriculture” won awards in the China Artificial
supporting farmers and promoting green mobility demonstrating its commitment to responsibility through concrete actions.Intelligence Competition demonstrating strong capabilities in industrial digital innovation.In the Electronic Technology segment Xindeco IoT successfully passed the national-level re-examination for specialized refined unique and
innovative (SRUI) “Little Giant” enterprises with independently developed core technologies reaching internationally advanced standards.Orders in the Brazilian market exceeded 100 million units and shipments of non-ARC products increased by 24%. Xindeco Optoelectronics
received multiple industry honors with its technological innovation and market influence continuing to grow. Sound Governance - Consolidating the
In the Automotive Distribution segment Xindeco ITG Automobile Group accelerated its transformation towards new energy vehicles securing
authorization for seven new energy projects primarily based on HarmonyOS Intelligent Mobility. User centers in Fuzhou Quanzhou and Foundation of Management
Haicang commenced operations successfully. Xindeco Tongshang Automobile expanded into markets such as Australia and Poland added 8
new overseas warehouses bringing the total to 11 overseas warehouses and formed strategic partnerships with automakers including FAW
A sound governance system is an important safeguard for the Company’s steady and long-term development. We continued to
and Dongfeng. During the year contracts were signed for the export of 21000 vehicles amounting to USD 310 million representing a more
optimize the corporate governance structure strengthened the performance of duties by the Board of Directors and the
than twofold increase in export volume.functions of its specialized committees deepened compliance internal control and risk management and standardized related-
party transactions and tax management. We valued investor relations safeguarded creditors’ rights and interests improved the
integrity management system and whistle-blower protection mechanism and adhered to the principles of fair competition. With
Green Operations - Practicing the Low-Carbon a governance culture characterized by transparency fairness and integrity we consolidated the foundation for the Company’s
long-term development.Mission Looking ahead Xindeco will continue to be guided by long-termism uphold the principles of technology for good green
innovation and responsibility for the future and work hand in hand with global partners to jointly create a greener smarter and
mutually beneficial future at the intersection of digital intelligence and sustainable development.Green development remains our unwavering commitment. In 2025 we continuously improved our environmental management system
strengthened environmental compliance and risk management and enhanced environmental training and communication to ensure the
effective implementation of all environmental management requirements. We strictly controlled emissions of waste gas wastewater solid
waste and other pollutants to ensure compliant discharge. We continued to optimize the management of energy water resources and
materials to improve resource utilization efficiency. We actively practiced green operations promoted the development of a circular economy
advocated green office practices and integrated low-carbon principles into daily management. At the same time we paid close attention to
ecosystem and biodiversity conservation safeguarding lucid waters and lush mountains through concrete actions and contributing Xindeco’s
strength towards the goals of carbon peaking and carbon neutrality.
03 042025 Sustainability Report
Sustainable Development
Highlights in 2025
Total investment in environmental protection: Energy consumption intensity:
Total assets: Net profit attributable to listed company
shareholders: 159.35 RMB10000 0.12tce/RMB 1 million
1445370.22 RMB10000 1524.22 RMB10000 Number of environmental training sessions Greenhouse gas emission intensity:
49 times 0.49tCO2e/RMB 1 million
Economic Operating income: Total tax paid: Environmental
Performance Photovoltaic generation consumption:
3237779.76 RMB10000 20718.52 Performance RMB10000 1758259.40 kWh
Meeting of Shareholders convened: Investment in employee training： Investment in work safety：
5times 84.24 RMB10000 78.09 RMB10000
Meetings of the Board of Directors convened: Employee training coverage： Investment in safety training：
17times 100% 10.55 RMB10000Governance
Performance Social
Percentage of independent directors in the Board of Directors: Performance Investment in R&D： Investment in rural revitalization：
33.33% 3883.13 RMB10000 81.51 RMB10000
05 062025 Sustainability Report
About Xindeco
Company Profile
Xiamen Xindeco Ltd. was founded in 1984 and listed on the Shenzhen Stock Exchange in 1997 (stock name: Xindeco; stock code: 000701).Its business segments include supply chain digital intelligence technology electronic technology and automotive distribution. With the mission
of “Leading Advantageous Industries and Creating a Better Life” the Company upholds the core values of “Pursuing Excellence Acting withIntegrity and Responsibility Striving as the Foundation and Co-creating and Sharing” and is committed to becoming a high-quality listed
company serving new quality productive forces.Corporate Culture
The Company practices a “pioneering culture” striving to build itself into a broad platform for career development a progressive learning
organization and a closely bonded community of shared future bringing together like-minded and dedicated individuals to promote high-
quality development.Mission
Leading Advantaged Core Values
Industries and
Creating a Better Life Pursuing Excellence Acting with
Integrity and Responsibility Striving as
the Foundation and Co-creating and
Sharing
Vision
To become a
high-quality listed company
serving new quality
productive forces
Our Spirit
Strive for Excellence in All
Endeavors
Management
Philosophy
Efficiency Leadership Risk
Control Safeguard Scientific Brand Slogan
Decision-making and Full
Integrity as the Foundation
Utilization of Talent
and Shared Benefits upon
Success
Business Philosophy
Be Specialized Strong Excellent and Sustainable Organizational Roles
A Grand Stage a Great School a Shared Home
07 082025 Sustainability Report
Development
History 1997
2024
Xiamen Xindeco Digital Intelligence Technology Co. Ltd. was
Listed on the Shenzhen Stock Exchange 2018 established laying out the digital intelligence technology
industry and enriching the digital intelligence business
ecosystem
Acquired and integrated Xiamen ITG
2005 Automobile establishing Xiamen Xindeco ITG
Automobile Group Co. Ltd.
2025
Xiamen Xindeco IoT Technology Co. Ltd. was established entering the RFID
electronic tag (IoT) industry
2019 Xindeco IoT Malaysia was officially put into operation
enhancing the Company’s service capabilities in the RFID
supply chain across Southeast Asia and globally
2007 Xiamen Xindeco Information Technology Group
Co. Ltd. was established integrating the
operation and management of the IoT and
Xiamen Xindeco Optoelectronics Co. Ltd. was established entering the LED
optoelectronics industries
optoelectronics industry
1984
Xiamen Special Economic Zone International
Information Development Co. Ltd. (the
predecessor of Xindeco) was established
2010
First included in the Fortune China 500 list
1986
Xindeco Import & Export Trading Co. Ltd. was 2014
established obtaining nationwide import and 2020
export operating rights “XINDECO” was recognized as a well-known
trademark in China; private placement was conducted Launched its first equity incentive plan becoming one of the first state-controlled listed companies in
to expand production and strategically strengthen the Xiamen to introduce an equity incentive scheme
information technology segment
1992
As one of the first enterprises in the Xiamen 2016
Special Economic Zone to undergo 2023
shareholding reform Xiamen Xindeco Ltd. was Completed private placement and listing continuously
established expanding and strengthening the information Completed private placement and listing empowering the development of core businesses such as the
technology segment IoT and automotive distribution and enhancing the Company’s overall business strength
09 102025 Sustainability Report
Honors in 2025
Xindeco Xindeco Optoelectronics
2024 Top 20 Global Iron Ore Innovative 2025 Digital Intelligence 2025 2024 Top 100 Chinese DALI China Awards · Silve 2025 Hangjia Aurora Award – Influential
Suppliers under the “Black Gold Cup” Application Scenario Recruitment Ecosystem Partner Award Best Employer LED Lighting Companies Award for Excellent Design Teams Supply Chain Enterprise of the Year
China Enterprise DALI China Awards Organizing Committee Hangjiashuo Display
Shanghai Ganglian CIO Branch of China Tongdao Elite (Tianjin) Alliance (Beijing) Grand Lighting Industry (jointly organized by Hangjiashuo Industrial Research Center
E-Commerce Software Industry Information Human Resources Research Institute the International Commission on Illumination and the and Hangjia Aurora Award
Holdings Co. Ltd. Association Technology Co. Ltd. Management Center China Illuminating Engineering Society) Organizing Committee
Xindeco IoT Xindeco ITG Automobile Group
2025 Top 100 Social Responsibility
25th China Patent 2024 China IoT Industry 2025 24th “IOTE Gold Award” 2025 Top 100 2025 Top 100 New Energy Enterprises in China
Excellence Award Innovative Product Award for Innovative Products Automotive Dealer Groups in China Automotive Dealer Groups in China Automobile Dealership Industry
China National World AIoT Innovation Alliance Shenzhen IoT Shenzhen Internet of Things Industry
Intellectual Property Industry Association AIoT Star Association and the IOTE
China Automobile China Auto Dealers China Auto Dealers
Administration Map Research Institute AIoT Library and IoT Media Organizing Committee
Dealers Association Chamber of Commerce Chamber of Commerce
11 122025 Sustainability Report
Sustainable Development SDGs Our Actions SDGs Our Actions
The Company continues to carry out various The Company in collaboration with the municipal
mutual assistance and care programs and has maternal and child health hospital and Xinxu Town
Governance established a dedicated mutual aid fund pool to convened joint meetings to facilitate connections for provide support to employees in need and their the development of the collective economy of
families. Jinbing Village thereby supporting rural
revitalization.The Company regularly organizes health
ESG Governance System examinations and cultural and sports activities continuously improves a diversified employee The Company has developed a professionalprotection system based on social insurance teaching faculty and established the “Talent CloudThe Company actively integrates sustainable development concepts into its strategic planning and daily operations continuously improves its supplementary medical insurance and Classroom” to support employees in improving their
enterprise annuities. Futhermore the Company
ESG governance system and has established a sustainable development governance structure. By setting up a Strategy and Sustainability professional skills.prov ides a l lowances for meals and
Committee responsible for studying analyzing and evaluating sustainability-related matters the Company has effectively strengthened its transportation thereby building a multi-tiered
capability in managing sustainability issues and preventing risks thereby promoting steady operations and long-term development. welfare system and continuously enhancing
employees’ sense of well-being and belonging.In the performance assessment of senior management during their tenure the Company explicitly incorporates “sustainable development” as
one of the key evaluation indicators with assessment results directly linked to remuneration during tenure. This ensures that executive
compensation is closely aligned with the Company’s long-term value and green development driving improvements in strategic management The Company effectively safeguards the lawful The Company strengthens water resource
independent innovation resource conservation environmental protection and safe development and continuously enhancing the Company’s rights and interests of female employees strictly management constructs high-standard wastewater
ensuring gender equality in key aspects such as treatment facilities continuously optimizes
core competitiveness and sustainability capabilities. recruitment remuneration and benefits and wastewater management processes reduces
promotion and fully implements statutory leaveIn 2025 the Company obtained ratings of A or above from multiple rating agencies and was awarded the “2025 Best ESG Practice Award for wastewater discharge at the source and mitigates entitlements such as maternity examination impacts on the water environment.Listed Companies”. Its ESG management capabilities and practical achievements have been recognized by authoritative institutions reflecting leave in accordance with the law.the high level of affirmation from the capital market and professional organizations regarding the Company’s sustainability capabilities
governance standards and overall value.The Company vigorously promotes the The Company has established a performance-
application of clean energy such as photovoltaic oriented remuneration system provides employees
power generation reduces reliance on fossil with market-competitive compensation and fully
ESG Rating ESG Rating Results in 2025 fuels and lowers greenhouse gas (GHG) taps employee potential by offering clear career
emissions through measures such as development pathways.technological transformation and energy-saving
Wind ESG Rating AA awareness initiatives.SynTao Green Finance ESG Rating A
The Company continues to deepen the
CCXI ESG Rating AA development of technological innovation The Company adheres to the principle of equal
QuantData ESG Rating A platforms optimize incentives for R&D and
pay for equal work ensuring that every employee
innovation and actively participates in industry enjoys fair treatment in recruitment remuneration
exchanges and interactions thereby training and promotion.continuously enhancing innovation capabilities
2025 Best ESG Practice CCXI AA Rating and product competitiveness.
Award for Certificate
Listed Companies
The Company actively carries out community The Company implements stringent control
ESG Risk Management volunteer services and community service measures covering the entire process from activities such as childcare support and elderly incoming inspection process inspection to final
care demonstrating its corporate social inspection and has established a product recall
responsibility through concrete actions and mechanism to ensure that customers’ lawful rights
To promote steady operations and sustainable development the Company with reference to the Self-Regulatory Guidelines No. 17 for promoting harmonious social development. and interests are effectively protected.Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial) and IFRS S1 General Requirements for Disclosure of
Sustainability-related Financial Information issued by the International Sustainability Standards Board (ISSB) and in light of its business
realities systematically conducts comprehensive identification and assessment of ESG risks and opportunities focusing on key topics such as The Company continues to improve corporate
The Company actively responds to the national
product and service safety and quality supply chain security and innovation-driven development. Based on the assessment results the governance by regularly carrying out anti-corruption “dual carbon” goals and the global temperature
and integrity initiatives and establishing a sound
Company formulates targeted management measures and action plans strengthens internal control supervision and risk prevention control targets under the Paris Agreement audit and supervision system ensuring lawful and
formulates comprehensive medium- and long-
capabilities effectively mitigates potential negative impacts while actively seizing sustainable development opportunities and provides solid compliant operations. It fulfills its information
term action plans for carbon peaking and
support for high-quality development and value creation. For details on the identification of risks and opportunities for each topic and related disclosure obligations in accordance with laws and carbon neutrality and systematically advances
regulations and continuously enhances the
content please refer to the corresponding sections of this report. carbon emission reduction across the entire transparency and standardization of corporate
value chain.governance.Response to the SDGs The Company has established a comprehensivemanagement system covering the entire supplier
lifecycle of “admission audit evaluation and exit”
Xindeco continues to promote sustainable development and actively aligns with the United Nations Sustainable Development Goals (SDGs) incorporating ESG performance as an important
consideration and continuously improving supply
using the SDGs as guidance to anchor the direction of ESG work and drive the effective implementation of relevant practices.chain quality control capabilities.
13 142025 Sustainability Report
Management of Material Topics Risk and Compliance Management
Protection of Employees’ Rights and Interests
Anti-commercial Bribery and Anti-corruption
Taking into account the characteristics of its industry and business operations the Company bases its approach on the topics set out in the
Employee Training and Development
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial) (hereinafter referred to as Occupational Health and Safety
the Guidelines) and with reference to relevant topics within the same industry introduces the analytical perspectives of impact materiality and Environmental Compliance Management
financial materiality to identify and assess material topics. This has resulted in the formation of Xindeco’s 2025 materiality assessment matrix Pollutant Emissions Product and Service Safety and Quality
which is disclosed in this report.Energy Utilization
Waste Treatment Data Security and Customer Privacy Protection
Water Resource Utilization
Anti-unfair Competition
Assessment Process of Material Topics Analysis Methods
Circular Rural Revitalization
Economy Communications with Stakeholders
Innovation-
Driven Development
Supply Chain Security
Social Contribution Due Diligence
Step 1: Understanding of Understand company activities and business relationships
the Company's activities Understand the external objective environment Ecosystem and Biodiversity Conservation
and business relationships Know about major affected stakeholders.Response to
Technology Climate Change
Ethics
Equal Treatment of
Small and
Step 2: Creating Identify other potential material topics based on the 21 topics established in the Medium-sized Enterprises
Guidelines and with reference to relevant topics within the same industry.a list of material
topics Identify relevant impacts risks and opportunities for each topic and compile into a corporate topic inventory.Materiality to corporate finance Highly material
Assess the impact materiality Dual material topics Financial material topics Impact material topics Relevant Topics
Identify the potential or actual positive or negative impacts of each issue on the
external environment society and economy conduct a survey among stakeholders Xindeco Materiality Assessment Matrix
in the form of questionnaires.Step 3: Assessing
and confirming the Assess the financial materiality
materiality of topics Through the analysis of impacts dependencies and other factors in combination
with the judgement of the Company’s management and external experts as well Environmental Compliance Management Energy Utilization Response to Climate Change
as risk identification and assessment lists from various departments identify and
assess risks and opportunities under each relevant topic to recognize topics with Environmental Circular Economy Water Resource Utilization Pollutant Emissions Waste Treatment
financial materiality. Topics
Ecosystem and Biodiversity Conservation
Protection of Employees’ Rights and Interests Employee Training and Development
Summarize the processes methodologies and conclusions of dual materiality
analysis for topics. Occupational Health and Safety Innovation-Driven Development Technology Ethics
Step 4: Topic report
Social Topics Product and Service Safety and Quality Data Security and Customer Privacy Protection Supply Chain Security
Disclose related content according to the Guidelines.Equal Treatment of Small and Medium-sized Enterprises Social Contribution Rural Revitalization
Risk and Compliance Management Anti-commercial Bribery and Anti-corruption
Governance Anti-unfair Competition Due Diligence
Topics Communications with Stakeholders
1516
Highly material Materiality to economic social and environmental impacts2025 Sustainability Report
Communications with Stakeholders
The Company continuously deepens communication and interaction with stakeholders actively establishes diversified and accessible dialogue
channels accurately understands the concerns and expectations of all parties responds to key demands with practical measures builds
consensus and fosters coordinated efforts and jointly promotes the sustainable development of the economy society and the environment.Stakeholders Topics of Concern Communication and Response
Compliance management Information disclosure
Community investment Public welfare donations
Government and Lawful tax payment Tax payment on time
regulatory departments
Compliance management
Anti-commercial bribery and Risk management and control
anti-corruption Construction of probity
Tax management
Investors and shareholders Tax compliance
Privacy protection Strengthen information
Protect the rights and interests of security management
customers
Customer satisfaction survey
After-sales support
Customers Management of customer complaint
Establishment of a dedicated
mutual aid fund pool
Employee care
Compensation and benefits Enhancement of
Employee training compensation and benefits
Employees Career development and promotion Regularly organization of training activities
Improvement of career
advancement mechanisms
Sustainable supply chain development Clean procurement
Industry exchanges Participation in industry exhibitions
Win-win cooperation Contract Performance
Suppliers and partners
Public welfare projects Community service activities
Rural revitalization Educational support
Environmental management
Public and community Promoting green development
Information transparency Timely disclosure of announcements
Responses to communication Strengthening routine communication
Media agencies
17 182025 Sustainability Report
01
Guidance by Party Leadership and
Strengthened Governance Foundation
The Company consistently upholds high-quality Party building as its guiding principle continuously optimizes its corporate
governance structure adheres to compliant operations and improves its risk management system. At the same time
through diversified and accessible communication channels the Company strengthens investor relations management and
attaches great importance to the development of business ethics laying a solid foundation for long-term and stable
development through robust governance capabilities.Our Actions SDGs Responded
Party building
Corporate governance
Compliant operation and risk management
I nvestor relations management and shareholders’ rights and interests
Business ethics
19 202025 Sustainability Report
Party Building Party-Building Practices
The Company’s Party Committee consistently places ideological and political development as a top priority thoroughly studies and implements
The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era thoroughly implements General Secretary Xi Jinping’s important expositions on the development of spiritual civilization formulates the Key Points for the Development of
the decisions and deployments of the Central Committee of the Communist Party of China and fully integrates Party leadership into its operations Spiritual Civilization in 2025 and steadily advances various initiatives in this regard integrating the concept of civilization into the entire process of
and management using high-quality Party building to lead high-quality development. daily operations and management.At the same time the Company steadily advances the development of Party conduct and clean governance unswervingly implements the
strategic arrangements for comprehensively and strictly governing the Party and strictly observes the Party’s political discipline and political rules.Organizational Development The Company thoroughly carries out study and education on the implementation of the spirit of the Central Eight-Point Decision strengthens
discipline education supervision and enforcement of discipline and integrity risk prevention and control guiding Party members and cadres to
The Company consistently embeds Party leadership into all aspects and at every stage of corporate governance structure continuously densifies remain respectful vigilant and adhere to bottom lines thereby fostering a clean and upright political ecosystem and a proactive working
and strengthens the system of primary-level Party organizations and has established an organizational framework led by the Company’s Party atmosphere.Committee with vertical management over subsidiary Party organizations achieves horizontal coverage and vertical penetration thereby Primary-level Party organizations actively organize a variety of themed Party Day activities. The Party organization of Xindeco Digital Intelligence
effectively enhancing governance efficiency. Technology integrates study and education with Party-building branding promoting resonance between Party building and business operations;
The Company’s Party Committee consistently promotes the organic integration of Party leadership and corporate governance thoroughly Xindeco Electronic Information Technology uses integrity-themed sports events as a platform to combine education with engagement fostering a
implements the “Three Majors and One Large” (major issues major personnel appointment and dismissals investments in major projects and strong culture of integrity; Xindeco ITG Automobile Group organizes Party members and cadres to visit warning education bases to reflect on
use of large sums of money) decision-making system for enterprises formulates and optimizes the Rules of Procedure for Party Committee exemplary corporate values; supply chain Party organizations innovatively organize a “live-action integrity flying chess” challenge and coordinate
Meetings and the List of Major Operational and Management Matters for Pre-review and Discussion and establishes a power operation with community families to watch integrity-themed cultural films extending integrity education to families and grassroots levels. These series of
mechanism characterized by scientific decision-making resolute execution and effective supervision thereby providing strong organizational activities integrate discipline education and integrity culture into daily practice enriching educational formats while strengthening the integrity
support for advancing the Company’s high-quality development to a new level. awareness of Party members and cadres achieving both effective education and the cultivation of a positive atmosphere.Case Study and Education on the Implementation of the Spirit of the Central Eight-Point Decision
Party Committee of Xindeco
On March 31 2025 the Company convened an enlarged meeting of the
Party Committee. The meeting conveyed and studied General Secretary Xi
Jinping’s important speeches and instructions on the in-depth implementation
of the spirit of the Central Eight-Point Decision as well as relevant
deployment requirements at all levels; deliberated and approved the
General Party Branch of Xindeco General Party Branch of Xindeco
Electronic Information Technology ITG Automobile Group implementation plan for study and education and made arrangements for the
Company’s related work. This meeting further consolidated the foundation for
the Company’s work style development and compliance governance
supporting the achievement of clean and standardized operations.Party-Building Brands
The Company continues to explore effective pathways and carriers for the deep integration of Party building and business operations. It has
vigorously advanced the Party-building brand development initiative of “One Brand for Each Enterprise” and “One Distinctive Feature for EachParty Branch” establishing four new Party-building brands in 2025 including “Digital Intelligence Pioneer” and refining existing brands such as
“Zhihui Blue”. This has resulted in the formation of a “1+14” Party-building brand matrix enhancing the distinctiveness and appeal of Party-building
work.Primary-level Party Organization Structure
Key Performance
As of the end of the reporting period the Company had a total of 1Party Committee (including the
Company-level Party Committee) 2 general Party branches 17 Party branches and 325 Party
members.During the reporting period a total of 35 Party Committee meetings were convened.Party-building Brand Matrix
2122
Party Branch of Supply Chain Digital
Intelligence Innovation
Fourth Joint Party Branch of ITG Automobile
Third Party Branch of ITG Automobile
Second Party Branch of ITG Automobile
First Party Branch of ITG Automobile
Party Branch at Headquarters of Xindeco
Electronic Information Technology
Party Branch of Xindeco Link
Party Branch of Xindeco IoT
Party Branch of Xindeco Optoelectronics
Party Branch of Xindeco Intelligent IoT
Party Branch of ITG Digital Technology
Party Branch at Headquarters of Xindeco
Digital Intelligence Technology
Party Branch of Shanghai Xindeco Runhe
Party Branch of Xindaan Trading
Party Branch at Headquarters of Supply
Chain Business Division
Second Party Branch of Headquarters
First Party Branch of Headquarters2025 Sustainability Report
Corporate Governance Board Diversity Composition of the Board of Directors
The Company attaches great importance to
the diversity of the Board of Directors. In the
The Company strictly complies with relevant laws and regulations and regulatory requirements including the Company Law of the People’s 1 4
nomination and appointment of directors
Republic of China (hereinafter referred to as the Company Law) and the Securities Law of the People’s Republic of China (hereinafter referred
candidates are comprehensively assessed
to as the Securities Law) and has formulated governance systems such as the Articles of Association Rules of Procedure for the Meeting of
from multiple dimensions including By
Shareholders Rules of Procedure for Board of Directors Meetings and Rules of Procedure for General Manager’s Office. These systems By A ge
professional experience educational Gender
clearly define the duties and authorities of the shareholders’ meeting the board of directors specialized committees of the board and the
background gender and age. The current
management forming a corporate governance structure characterized by clearly defined responsibilities effective checks and balances and
Board comprises members with extensive 2
coordinated operation thereby providing solid assurance for the implementation of major decisions and standardized daily operations. 3
industry experience and complementary 8
professional backgrounds laying a solid
foundation for comprehensive and sound
Meeting of Shareholders Male Female 50 and below 60 and abovedecision-making. Between 51-59
The Meeting of Shareholders is the highest authority of the Company. In accordance with the requirements of the Articles of Association and Board Independence
the Rules of Procedure for the Meeting of Shareholders the Company standardizes the convening holding and voting procedures of
shareholders’ meetings. At the same time the Company facilitates shareholders in exercising their voting rights through online voting and The Company has established the Independent Director System which clearly defines the requirements for the composition and
implements separate vote counting for major matters involving the interests of minority investors with timely disclosure of results thereby responsibilities of independent directors providing a robust institutional guarantee for their independent performance of duties. Independent
ensuring transparency fairness and impartiality in decision-making. directors constitute a majority of the Audit and Risk Control Committee the Nomination Committee and the Remuneration and Appraisal
Committee and serve as conveners of these committees. The convener of the Audit and Risk Control Committee is an accounting
professional. During the reporting period independent directors diligently performed their duties playing roles in decision-making oversight
and checks and balances and professional consultation within the Board thereby effectively safeguarding the overall interests of the
Key During the reporting period 5 shareholders’ meetings were convened and 43 matters were Company and the lawful rights and interests of minority shareholders.Perfor- deliberated and approved.mance
Key
Perfor- The Company currently has3 independent directors and 6 non-independent directors with independent
Board of Directors mance directors accounting for 33.33 % of the Board.The Board of Directors is the Company’s decision-making body for operations and is accountable to the Meeting of Shareholders. The Board
The proportion of independent directors on the Audit and Risk Control Committee is 66.67% on the
of Directors exercises its functions and powers in strict accordance with documents such as the Rules of Procedure for Board of Directors
including deciding on business plans and investment proposals and formulating management systems. Nomination Committee is 66.67% on the Remuneration and Appraisal Committee is66.67% on
the Budget Committee is33.33% and on the Strategy and Sustainability Committee is33.33%.Key During the reporting period the Board convened 17 meetings with a 100% attendance rate of
Perfor-
mance directors and 92 matters were deliberated and approved. Remuneration Management for Directors and Senior Management
In accordance with relevant laws and regulations such as the Code of Corporate Governance for Listed Companies the Company has
formulated and continuously optimized the Remuneration and Performance Management System for Directors and Senior Management by
strictly standardizing the remuneration and performance management of directors and senior management fully leveraging the incentive and
Board Committees restraint functions of the remuneration mechanism and effectively mobilizing the initiative and creativity of directors and senior management.The Board has established five specialized committees - namely the Audit and Risk Control Committee the Strategy and Sustainability The annual remuneration of directors and senior management consists of two components: base annual salary and performance-based
Committee the Nomination Committee the Remuneration and Appraisal Committee and the Budget Committee - as its working bodies. Each annual salary. The base annual salary is determined based on factors such as position responsibilities and market salary levels; the
committee performs its duties independently and efficiently in accordance with the Articles of Association and its implementation rules performance-based annual salary is determined based on the Company’s annual performance and the performance of directors and senior
providing professional support for the Board’s scientific decision-making. management following comprehensive assessment thereby ensuring that remuneration is closely linked to the Company’s development and
individual contributions.Key During the reporting period the Company held 11meetings of the Audit and Risk Control Committee
Perfor- 10 Key During the reporting period the total pre-tax remuneration received by directors and senior management during their mance meetings of the Strategy and Sustainability Committee 2meetings of the Nomination Committee Perfor-
mance
7meetings of the Remuneration and Appraisal Committee and 2meetings of the Budget Committee. tenure from the Company amounted to RMB 8.2941 million.
23 242025 Sustainability Report
Case Legal Training
Compliant Operation and Risk Management
On December 11 2025 the Company conducted an
offline legal training session on topics including Major
Compliance and Internal Control Revisions to Maritime Law and Their Impact on Practice
effectively enhancing the legal risk identification and
prevention awareness of employees particularly those in
The Company strictly complies with the Basic Norms for the Internal Control of Enterprises and its supporting guidelines and has formulated
key positions such as foreign-related business and supply
specific systems such as the Logistics Management Regulations for Supply Chain Business and the Approval Authority for Trade-related
chain management and providing timely and precise
Business of the Non-ferrous Metals Business Division. It continuously improves its internal control management system covering key areas
guidance for compliant operations amid complex
such as settlement business credit business fund management risk management and legal compliance thereby enhancing the
international trade environments and evolving domestic
effectiveness of internal control and the level of risk prevention and control. In addition the Company actively conducts compliance self-
legal and policy frameworks.inspections of its supply chain business and special inspections on confidentiality work continuously optimizes system control rules and
promotes the effective performance of confidentiality and compliance responsibilities providing strong support for standardized operations and
optimized internal control.Internal Audit
The Company has established an Internal Control and Audit Department which prepares annual audit plans based on the Company's overall
development plans annual operating objectives and key risk management priorities taking into account the operating characteristics business
scale and risk levels of the Company's headquarters and its investee enterprises conducts audits of the Company’s headquarters and Risk Management
investee enterprises and regularly reports to the Audit and Risk Control Committee to ensure lawful and compliant operations. In 2025 the
Internal Control and Audit Department focusing on the core objective of “broad coverage and precision empowerment” advanced 13 internal The Company continues to improve its risk management system by formulating institutional documents such as the Comprehensive Risk
audit projects comprehensively covering all business lines including ferrous metals such as steel iron ore coking coal and coke and Management System and the Measures for Operational Risk Management and advancing risk classification and grading management across
completed a specialized review of the internal control system of Digital Intelligence Technology. At the same time it focused on key risks in multiple areas. At the same time the Company has established an organizational structure for risk management led by the Board of Directors
critical areas such as the use of raised funds engineering construction tendering and bidding and financial assistance thereby strengthening the Party Committee and the General Manager’s Office centered on the “three lines of defense” promoting the deep integration of risk
the risk prevention and control framework. management with daily operations and business processes. In addition the Company links risk management indicators with the performance
of relevant personnel and conducts regular comprehensive assessments to ensure the effective implementation of risk control responsibilities
and to safeguard the safe and stable operation of the Company.Key During the reporting period the Company advanced 13 internal audit projects identifying 86 issues Organizational Structure and Functions for Risk Management
Perfor-
mance proposing 80 targeted rectification requirements and concurrently issuing 7 ecommendations for
Approval of fundamental systems policies and other major matters related to comprehensive risk
practical management. The rectification completion rate within the prescribed timeframe reached 100%. The Board management.Audit and Risk Responsible for supervising the management in implementing comprehensive risk management and
Management Committee organizing the review of fundamental systems for comprehensive risk management.Import and Export Compliance Management
Risk Management Responsible for drafting systems and policies formulating risk appetite organizing risk assessments To implement import and export controls and safeguard overseas operations the Company
Working Group and supervising and evaluating the work of business segments.assisted Xindeco Tongshang Automobile and Xindeco Mining in successfully obtaining
AEO Advanced Certification from customs authorities and guided certified entities and
various business departments to continuously strengthen customs management to ensure
Legal and Risk Responsible for coordinating daily risk management and organizing risk identification assessment
compliance with advanced certification standards. In addition the Company compiles Control Department monitoring inspection and evaluation.monthly statistics on customs declaration amendments and cancellations and analyses the
underlying causes to reduce error rates. It also organizes training on customs laws and
regulations to enhance employees’ awareness of customs compliance effectively Internal Control and
mitigating clearance risks. Conduct ex-post supervision inspect key business areas such as guarantees and related-party transactions Audit Department and
Supervision Office semi-annually inspect the use of raised funds quarterly and regularly report to higher authorities.AEO Advanced Certification
Compliance Team Building and Culture Assume primary responsibility for risk management implement relevant systems cooperate in risk
Functional Departments
information collection and reporting and accept supervision inspection and evaluation.To enhance the compliance performance capabilities of all employees during the reporting period the Company conducted multiple
specialized training sessions focusing on key areas such as legal risk prevention and control and compliance awareness cultivation. These
efforts strengthened employees’ legal awareness and risk prevention capabilities integrated compliance requirements into daily operations
and fostered a standardized and orderly compliance culture.
25 262025 Sustainability Report
Construction of Digital Risk Control System
The Board
In 2025 the Company launched a risk control data visualization platform (pilot operation) integrating risk data such as credit exposure and
overdue accounts to improve the efficiency of risk early warning. It also advanced the integration of the Northern and Southern systems with
Audit and Risk the China Warehouse Receipt Registry (CWRR) to enable dual evidence preservation via blockchain for warehouse receipts and judicial
Management Committee chains. In addition the Company developed a “Shipment during Non-Working Hours” mini-program effectively mitigating moral hazard and
improving operational efficiency.Office of General Manager Risk Management Training
The Company continues to strengthen its risk management capabilities. In 2025 the Company organized more than ten specialized training
sessions on risk control and compliance covering business operation standards key system review points contract management and
Risk Management logistics risk control. At the same time internal assessments were conducted for risk control personnel and new employees. The Company
Working Group also held regular intra-departmental exchanges and cross-segment risk control communication meetings. Through case sharing and
experience exchange it continuously enhances the professional competence and risk awareness of its risk management team.All business segments and Primary responsible departments Legal and Risk Control Internal Control and Audit
functional departments for centralized management Department (acting Department and
at headquarters of various types of risks as the secretariat) Supervision Office
First Line of Defense: Second Line of Defense: Third Line of Defense:
“Responsibility “Coordination and Division “Independent Supervision”Implementation” of Responsibilities”
Organizational Structure for Risk Management
Risk Management and Control
Related-Party Transactions
The Company has established a comprehensive risk management framework covering all business segments structured around
three core components: risk identification and assessment risk monitoring and reporting and risk supervision and inspection.Adhering to the principles of integrity equality voluntariness fairness openness and impartiality the Company has formulated the Related-
Through regular identification and assessment dynamic monitoring and early warning and strengthened supervision and
Party Transaction Management System. When the Board of Directors and the Meeting of Shareholders deliberate on related-party
inspection the Company ensures that various risks are effectively identified promptly reported and managed through closed-loop
transactions the Company strictly implements the recusal mechanism for related directors and shareholders to ensure that such transactions
control thereby continuously enhancing its capability to prevent and mitigate operational risks.are conducted in compliance with laws and regulations and do not harm the interests of the Company and other shareholders. During the
reporting period the Company duly performed approval procedures in accordance with regulations for matters involving financial assistance to
Risk Management Process related parties equity acquisitions and transfers and the estimation of routine related-party transactions ensuring standardized decision-
making and transparent information disclosure.Tax Management
The Company strictly complies with the Enterprise Income Tax Law of the People’s Republic of China and applicable tax laws and regulations
Risk Identification and Assessment Risk Monitoring and Reporting Risk Supervision and Inspection in all jurisdictions where it operates ensuring that its tax practices are lawful transparent prudent and well-controlled. In accordance with
The Company regularly The Company has established and The Company continuously internal control procedures the Company identifies and manages tax risks that may arise from its operations exercises control over key risks
organizes functional departments continuously improved its risk improves its risk investigation and and implements effective response measures to ensure compliance with tax obligations while effectively preventing and managing tax risks. At
and business units to conduct monitoring system defining risk early follow-up mechanisms. Based on the same time it has established a tax risk communication mechanism to ensure that significant tax matters are promptly reported to
risk identification and warning indicators in line with the risk monitoring results it management. In addition the Company maintains regular communication with tax authorities to stay abreast of changes in tax policies
assessment determine a list of specific conditions of each business strengthens risk supervision and strengthen tax compliance management actively participate in the development of the tax governance system and continuously enhance its
key risks for focused attention segment and clarifying responsible inspection as well as early tax management capabilities thereby supporting its steady and sustainable development.and make timely adjustments in reporting departments. Risk events warning tracking across business
response to significant changes are reported in accordance with segments and urges the timely
in internal and external prescribed procedures and implementation of rectification
Key
environments. appropriate response measures are measures to further enhance its Perfor- During the reporting period the total amount of taxes paid by the Company was RMB207.1852million.implemented. ability to prevent and control mance
operational risks.
27 282025 Sustainability Report
Investor Relations Management and Key During the reporting period the Company conducted 1 investor reception activity. It received a total of 109
Perfor-
Shareholders’ Rights and Interests mance investor inquiries on Shenzhen Stock Exchange Interactive Easy and responded to 106 of them achieving a
response rate of 97.25%.Information Disclosure
The Company strictly complies with the Measures for the Administration of Information Disclosure of Listed Companies the Guidelines No. 5
of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies - Management of Information Disclosure Affairs and other relevant
laws and regulations. It has formulated the Information Disclosure Affairs Management System to clearly define the scope of disclosure
approval procedures and other key matters ensuring the authenticity accuracy and completeness of disclosed information. The Company Protection of Creditors’ Rights and Interests
designates the Securities Department as the responsible unit for the day-to-day management of information disclosure operating under the
direct leadership of the Board Secretary to coordinate related work. At the same time the Company has established the Insider Information In strict compliance with the Company Law and other relevant laws and regulations the Company places high importance on protecting the
Registration and Management System which clarifies the confidentiality obligations of relevant personnel prior to public disclosure of legitimate rights and interests of creditors adheres to the principle of good faith and fulfills its debt repayment obligations in a timely and full
information and strictly prohibits the disclosure or leakage of insider information to any organization or individual in any form. manner in accordance with agreements reached with creditors. The Company continues to optimize its financial structure maintains stable
operations and a sound credit profile and ensures stable and reliable debt servicing capacity. In 2025 the Company’s issuer credit rating was
AA+ and the first tranche of its medium-term notes was rated AAA.Key
Perfor- During the reporting period the Company recorded 0 instances of penalties for violations related to
mance information disclosure.Key During the reporting period the Company had no overdue liabilities and did not engage in any conduct that harmed
Perfor-
mance the interests of creditors.Public Opinion Management
The Company attaches great importance to public opinion management and has formulated the Public Opinion Response Management
Measures to foster a sound and secure external media environment and effectively safeguard its brand image and public reputation. The
Company has established a Public Opinion Response Leading Group responsible for guiding the handling of online public opinion in
emergency situations developing unified external communication messages and response plans and effectively preventing potential public
opinion risks. In addition the Company stipulates that in the event of significant online public opinion incidents a spokesperson mechanism
may be established. A designated spokesperson appointed by the head of the Leading Group will uniformly handle media interviews and
respond to press inquiries ensuring the timely and accurate release of authoritative information maintaining proactive guidance of public
opinion and mitigating the impact of unfavorable coverage.Investor Relations Management
To standardize investor relations management the Company has formulated the Investor Relations Management System clearly defining the
fundamental principles communication content working methods and communication channels and has designated the Board Secretary to
organize and coordinate related work. The Company continuously strengthens communication and engagement with investors through various
channels including its official website new media platforms telephone fax and email as well as through shareholders’ meetings investor
briefings roadshows analyst meetings reception visits and discussion forums thereby enhancing investors’ understanding of and confidence
in the Company.Case Performance Briefings
On May 15 2025 the Company held a performance briefing via remote online communication through the Panorama Network
“Investor Relations Interactive Platform” engaging in in-depth discussions and providing responses to investor concerns regarding
the Company's operating performance corporate governance and development strategies. The performance briefing further
enhanced investors’ understanding of and confidence in the Company’s operating performance and development plans.
29 302025 Sustainability Report
Integrity Promotion and Education
Business Ethics
To further strengthen its culture of integrity the Company organized Party members and leading cadres to visit the Integrity Education Base
such as the Party Conduct and Government Supervision Platform the Xiang'an Jinbing Clean Officials Hall and the Wumei Family Traditions
Hall for on-site learning. Additionally the Company has launched the “Integrity AI Assistant” which provides precise automated responses to
integrity-related inquiries in business scenarios by referencing national regulations and internal policies. Empowered by AI this initiative creates
Integrity Management System a new model for integrity education. In addition the Company organized the “Smart Creativity for Integrity - Integrity-Themed Art Competition”
which collected over 60 AI-assisted posters and cartoons on integrity themes attracting more than 1800 participant interactions. This initiative
The Company has formulated the Administrative Measures for Integrating Integrity Risk Prevention and Control into Operational Risk has made integrity education more accessible and engaging through digital and AI-enabled approaches.Prevention and Control. The Discipline Inspection Commission provides overall leadership for integrity governance with the Supervision Office
responsible for oversight and inspection integrity education and accountability enforcement. The Party Committee has established a Leading
Group for Improving Party Conduct Upholding Integrity and Combating Corruption which is responsible for formulating and organizing the
implementation of annual anti-corruption tasks and continuously improving the integrity management system.Integrity Risk Management
Relying on its comprehensive risk management and internal control systems the Company continuously updates the Integrity Risk Prevention
and Control Handbook. Through measures including early-stage risk prevention mid-stage effective monitoring and post-incident investigation
and handling integrity risk prevention and control is embedded into operational risk management and covers all positions across the
Company. At the same time based on different business models the Company identifies key integrity risk areas such as engineering and
construction tendering and bidding and bulk commodity trading as well as critical positions. It systematically identifies integrity risk points and
risk levels and establishes appropriate control standards and primary preventive measures.Integrity Monitoring
Whistleblowing and Whistleblower Protection
By integrating Party supervision functional supervision audit oversight and public supervision and by combining regular self-inspections with
periodic reviews the Company strengthens oversight of integrity risk prevention and control. The Company has established a Leading Group
for Accountability in Violations of Investment and Operational Conduct as well as a Task Force for Investigating Issue Clues. Composed of For any suspected violations of business ethics the Company encourages employees and other stakeholders to report concerns via hotline
heads of the Internal Control and Audit Department Legal and Risk Control Department Party Committee Office Supervision Office Finance email or written correspondence. The Supervision Office is responsible for receiving both named and anonymous complaints and reports and
and Budget Department and Human Resources Department these bodies are responsible for approving classification and handling for promptly reporting them to the management or the Board of Directors. The Company strictly enforces confidentiality mechanisms for
recommendations for identified issues and for reviewing investigation results and proposed actions. whistleblowing prohibiting any disclosure of whistleblower information or retaliatory actions. Violations will result in disciplinary measures such
as removal from position or termination of employment and suspected illegal acts will be transferred to judicial authorities in accordance with
the law.Key Performance Indicators Unit 2025
Reporting Channels
Number of Anti-Corruption Training Sessions Times 19
Total Number of Participants in Anti-Bribery and Anti-Corruption Training Person 1313 Reporting Email Whistleblowing Hotline Correspondence Address for
Petitions and Complaints
xdjcs@xindeco.com.cn 0592-5608195
Unit 1101 Building A ITG Center
No. 4688 Xianyue Road Huli District Xiamen
Anti-Unfair Competition
The Company strictly complies with the Anti-Monopoly Law of the People’s Republic of China the Anti-Unfair Competition Law of the People’s
Republic of China and other applicable laws and regulations. It firmly prohibits any form of unfair competition or disruption of market order
adheres to principles of integrity in operations and actively upholds a free fair and honest market competition environment. During the
reporting period the Company was not subject to any investigation or penalties related to unfair competition practices.
31 322025 Sustainability Report
02
Environmental Protection for
Sustainable Growth
Xindeco actively responds to climate change and strictly implements environmental compliance management
requirements standardizing the discharge and treatment of waste gas wastewater and solid waste. By promoting energy
conservation and consumption reduction and practicing low-carbon operations the Company continuously improves
resource utilization efficiency comprehensively reinforcing its environmental management framework and contributing to
green and low-carbon development through concrete actions.Our Actions SDGs Responded
R esponse to climate change
Environmental compliance management
Pollutant emissions
R esource utilization
I mplementation of green operation
33 342025 Sustainability Report
Affected
Response to Climate Change Opportunities Probability Impact Potential Description Impact Value Priority Category of Magnitude Chain Ranking5 Financial Response MeasuresTimeframeOccurrence Segment Impact
Accelerate energy-saving
technological upgrades
Governance Operating costs will be and the substitution of
Opportunities effectively reduced by renewable energy optimize
in promoting the application of
Reduced
Operati- production processes and
The Company places great importance on climate change response actively aligns with the national “dual carbon” goals adheres to a green green and low-carbon Medium Medium
Long-term Medium operating
Green ons leverage digital and
costs
and low-carbon development philosophy and has established a sound climate change management system. Through the innovative Technologies technologies and enhancing intelligent tools to achieve
application of digital technologies the Company supports the low-carbon upgrade of the industrial chain. It also actively promotes the use of energy and resource efficiency. refined management and
continuously unlock cost-
renewable energy reduces resource consumption and facilitates the transition of production and operations as well as social life toward a
saving potential.green and sustainable model thereby continuously enhancing its climate resilience and development adaptability.Strengthen ESG
information disclosure and
Strategy By actively addressing climate communication develop
change and practicing green
green products and
Reputation development principles the Increased
The Company conducts comprehensive risk assessments and opportunity identification related to climate change. By considering both Downst services aligned with low-
Enhancement Company may enhance its Medium Medium Long-term Medium operating
physical and transition factors across different time horizons it formulates forward-looking response strategies continuously strengthens Opportunity carbon market demand Opportunities brand image and industry income leverage green advantages
climate resilience and actively captures transformation opportunities in the course of sustainable development. influence attracting high-quality ream
to expand market presence
partners.and enhance stakeholder
trust.Affected
Risk Risk Probability Impact Impact Value Priority
Potential
Category Description of Magnitude
Timeframe2 Chain Ranking
4 Financial Response Measures
Occurrence Segment3 Impact
Enhance early warning
and response
Typhoons and heavy 1mechanisms for Low:If the risk occurs it will have little to no noticeable impact on the enterprise’s finances reputation or operations and losses can be
rainfall in coastal regions Upstream extreme weather such easily absorbed.Acute may trigger flooding operati- Increased
High as typhoons reinforce Medium Short-term ons Medium operating Medium: If the risk occurs it will cause some negative impact on the enterprise's finances and reputation and measures may be resulting in asset damage
Risks key infrastructure downs- costs needed to mitigate the losses.inventory losses and relocate high-risk
business interruptions. tream High: If the risk occurs it will cause severe financial loss to the enterprise damage to the brand and may even affect business materials and improve
continuity and significant resources may be needed to recover.contingency plans with
Physic regular drills.-al
Prolonged extreme heat 2
Risks Short-term: Generally refers to within 1 year after the end of the Company’s sustainability reporting period (including 1 year).and drought may lead to
Arrange staggered
power supply constraints Medium-term: Generally refers to 1 to 5 years after the end of the Company’s sustainability reporting period (including 5 years).schedules for outdoor
for production water
work equip workplaces Long-term: Generally refers to more than 5 years after the end of the Company’s sustainability reporting period.Chronic shortages limitations on Medium Increased with cooling and water-
outdoor operations and Medium Medium and long Operations Medium operating
Risks saving facilities and
warehousing activities and -term costs
improve water 3
increased health risks for Upstream: Involves raw material suppliers procurement and logistics affecting the stability of the supply chain and raw material costs.conservation
employees. Operations: Involves production manufacturing and internal processes affecting daily operations and production efficiency.management systems.Downstream: Involves distribution sales and customer service affecting customer satisfaction market share and brand.Closely monitor policy
Tightening GHG emission developments and 4
Policy reduction policies and Low: The risk has relatively minor impact on the business and can be handled in routine operational management.Medium Increased continue to implement
Complia- strengthened carbon High Medium and long Operations Medium operating technological Medium: The risk has some impact on the business but can be addressed or mitigated within a reasonable timeframe.regulation may increase the
nce -term costs upgrades for energy High: The risk could lead to significant financial loss business disruption or severe legal consequences requiring immediate action.Company’s compliance
risks saving and carbon costs. reduction.Transiti-
on 5Accelerated energy transition Low: The opportunity has relatively minor impact on business is relatively small but it can still bring some revenue or efficiency
Risks and rapid iteration of clean Closely follow market improvements and can be handled routine operational management without the need for significant resource investment or strategic
technologies in the industry and policy trends adjustments.may render existing products Medium Decreased strengthen independent
Market Downstr- Medium: The opportunity can bring certain business growth or market share improvements has a positive impact on the business but
and services less compatible High Medium and long eam Medium operating
R&D and innovation
Risks expand into niche requires the enterprise to invest resources and adjust strategies within a certain period to address and seize the opportunity.with low-carbon demands -term income
weakening market markets and optimize High: The opportunity can bring significant market breakthroughs business growth or technological innovations significantly improves
competitiveness and leading industrial layout and the enterprise's competitiveness and profitability and requires the enterprise to take immediate action invest considerable resources and
to customer attrition. brand portfolio. possibly adjust its overall strategy to fully leverage this opportunity.
35 362025 Sustainability Report
Transition Risk
Impact Risk and Opportunity Management IEA scenarios include the high-emissions pathway (STEPS) the intermediate pathway (APS) and the low-emissions pathways (SDS and
NZE2050). Based on the IEA scenario framework the Company adopts the Net Zero Emissions (NZE) scenario and the high-emissions
The Company closely monitors the various impacts of climate change proactively identifies climate-related risks and potential opportunities in Stated Policies Scenario (STEPS) to assess the transition risks and opportunities that climate policies and measures may bring to its future
its operations and development and adopts appropriate response measures in line with its business characteristics. While steadily advancing development. Corresponding response measures are formulated to support sustainable development under climate-related transition risks and
low-carbon operations the Company actively captures growth opportunities arising from the green transition continuously enhances its opportunities.adaptive capacity and supports sustainable development across both the Company and its industrial chain.According to the IEA’s World Energy Outlook (WEO): Under the Net Zero Emissions (NZE) scenario global energy-related carbon dioxide
emissions reach net zero by 2050 providing a pathway to limit global temperature rise to within 1.5°C. Under the high-emissions Stated
Policies Scenario (STEPS) which considers only policies that have been enacted or officially announced by governments annual CO
Physical Risks emissions from energy and industrial processes are projected to increase from 34 Gt in 2020 to 36 Gt in 2030 and remain at approximately
the same level through 2050. If emissions continue along this trajectory and non-energy-related GHG emissions follow a similar trend global
Based on the Shared Socioeconomic Pathways (SSPs) framework outlined in the IPCC Sixth Assessment Report (AR6) the Company has temperatures are projected to rise by approximately 2.7°C by 2100 (with a 50% probability). By 2050 renewable energy is expected to
selected two core scenarios: the sustainable development scenario aligned with the 1.5°C temperature target (SSP1-1.9) and the high- account for nearly 55% of global electricity generation.emissions scenario (SSP5-8.5). Taking into account its business footprint and asset characteristics along China’s southeastern coast the
Company conducts full-cycle identification and assessment of climate hazard risks over the short medium and long term.With reference to the scientific findings of the IPCC AR6: Under the SSP1-1.9 low-emissions scenario the global average temperature
increase for 2081-2100 is projected to be controlled within 1.0°C-1.8°C above the 1850-1900 baseline with global mean sea level rise of 0.28- Metrics and Targets
0.55 meters and an increase in global annual average land precipitation of 0-5%. Under the SSP5-8.5 high-emissions scenario by 2100 the
The Company actively responds to China’s “dual carbon” strategy and the global temperature control targets under the Paris Agreement.global average temperature is projected to rise by 3.3°C-5.7°C relative to 1995–2014 levels with sea level rise of 0.63-1.01 meters and an
Based on its operational realities it has formulated a medium- to long-term action plan for carbon peaking and carbon neutrality advancing
increase in global annual average land precipitation of 1-13%. These projected climate trends may have potential impacts on the operational
emissions reduction across the entire value chain continuously enhancing its climate response framework and promoting deep integration
safety of the Company’s coastal warehousing logistics and real estate assets as well as on the stability of its supply chain providing a
between carbon emissions reduction targets and business development thereby steadily progressing toward green low-carbon and high-
scientific basis for the formulation of differentiated climate risk management strategies.quality development.Carbon Peaking and Carbon Neutrality Targets
20302050
Climate Hazard Risks Current
SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5
Floods typhoons
Strive to achieve peak carbon Achieve carbon neutrality
Damage to urban infrastructure and Moderate Moderate Very high High Very high
impacts on human well-being and impact impact impact impact impact emissions before 2030 ; before 2060 .health particularly in coastal cities and
communities
Sea level rise
Losses to human and natural systems Very low Very low High Moderate High
in low-lying coastal areas declining impact impact impact impact impact
coastal fishery resources reduced Key Performance
6
Unit
precipitation and rising temperatures
Total GHG Emissions tCO2e 15812.69
Extreme high temperature
GHG Emissions (Scope 1) tCO2e 313.75
Rising temperatures and extreme heat
impose stress and increase mortality Moderate Moderate High Moderate Very high GHG Emissions (Scope 2) tCO2e 15498.94
with higher heat-related morbidity and impact impact impact impact impact
mortality among humans and wildlife
GHG Emission Intensity tCO2e / RMB 1 million 0.49
posing risks to food and water security
GHG Emission Reductions tCO2e 1443.53
Drought
Freshwater scarcity with reduced Low Moderate High Moderate Very high
surface water availability for irrigated 6impact impact impact impact impact The total GHG emissions within the organization in this report are mainly calculated in accordance with the relevant conversion factors and
agriculture and other human uses formulas provided in Appendix 2 of the Accounting Methods and Reporting Guidelines for Greenhouse Gas Emissions of Enterprises in Other
Industrial Sectors (Trial) and the 2023 Power Carbon Dioxide Emission Factors.The GHG emissions reductions are the carbon dioxide
emission reduction achieved by using renewable energy instead of thermal power generation calculated according to the carbon dioxide
Physical Risk Assessment emission factor per unit of thermal power generation in the China Electric Power Industry Annual Development Report 2024.
37 382025 Sustainability Report
GHG Emission Management Case Low-Carbon Process Upgrade in RFID Production
The Company attaches great importance to GHG emission management and conducts irregular GHG inventories and emission calculations to
gain a comprehensive understanding of its carbon emissions profile. At the same time focusing on key areas such as green product design Xindeco IoT adheres to a philosophy of green innovation. By optimizing the EAS tag production process through technological
low-carbon supply chain transformation sustainable industry development and renewable energy application the Company has effectively improvements it has integrated two processes into one reducing equipment start-stop frequency by more than 30% thereby lowering
implemented various emissions reduction measures. It continues to reduce carbon intensity across all operational stages supporting low- electricity consumption and minimizing idle losses. Product yield has increased from 97% to 99.4% and it is estimated that approximately
carbon operations and green development throughout the entire value chain. one ton of waste can be reduced annually effectively promoting low-carbon high-quality development in the RFID tag industry.Integrate green design principles throughout the entire product lifecycle develop more sustainable Transfer Transfer EAS Inlay
Green Product Design printing printing
products and reduce GHG emissions during the use phase; Face paper EAS Inlay Release liner
Face paper EAS+inlay Release liner
Lamination LaminationLow-Carbon Supply Build open and shared digital platforms including the “Xindeco Cloud Electronic Signature and SealChain Transformation System” and “Smart Warehousing System” leveraging digital tools to empower low-carbon development Lamination Lamination
across the supply chain; Finished product
Finished product
Sustainable Industry Actively expand into sustainable sectors such as green mobility services promote environmentally Production Production
Development friendly travel and introduce new energy vehicles - including battery electric and plug-in hybrid models - Process before Process after
Label replacement
and inspection
across multiple 4S stores; Improvement Label replacement Improvementand inspection
Renewable Energy Actively promote the use of renewable energy such as solar and wind power driving the transition toward
Application green and low-carbon energy consumption; Warehousing Entry
Comparison of EAS Tag Making Process before and after Improvement
Advance green production technology upgrades through intelligent transformation process optimization
Green Production
Technology Upgrades and intensive resource utilization effectively reducing energy consumption and GHG emissions during
production.Environmental Compliance Management
Case Eco-friendly Paper Antenna Series
Xindeco IoT is actively developing green products and has launched an eco-friendly paper antenna series. This series of antennas Environmental Management System and Policies
uses 100% post-consumer recycled (PCR) materials with the label material made from FSC Recycled Credit certified paper. It
meets international environmental regulations while maintaining excellent and stable sensitivity achieving a perfect balance
between environmental sustainability and performance. The Company strictly complies with the Environmental Protection Law of the People’s Republic of China and other applicable laws and
regulations and continues to improve its environmental management system. To ensure lawful and compliant environmental management the
Company’s manufacturing subsidiaries have established and implemented internal environmental management policies strictly controlling
pollutant emissions enhancing green operations and fulfilling their environmental responsibilities.As of the end of the reporting period Xindeco Optoelectronics Xindeco IoT and Xindeco Intelligent IoT have obtained ISO 14001
Environmental Management System certification.Key
During the reporting period the Company Perfor-
invested in environmental protection totally RMB mance
1.5935 million and recorded 0
environmental incidents and 0 violations of
environmental laws or regulations.Environmental Environmental Management
Management System System Certification of Note: The scope of data statistics includes Xindeco Electronic Information
Certification of Xindeco IoT Xindeco Optoelectronics Technology and Xindeco ITG Automobile Group.
39 402025 Sustainability Report
Management of Environmental Risks Case Waste Classification Training Provided by Xindeco ITG Automobile Group
The Company systematically reviews environmental impact factors arising from its operations and continuously strengthens its environmental
risk management capabilities. To promptly identify potential environmental risks Xindeco Optoelectronics has formulated the Risk and In 2025 Xindeco ITG Automobile Group conducted specialized training on waste classification covering interpretation of the four-
Opportunity Management Procedure ensuring that risks and opportunities related to environmental management and system operation are category municipal waste classification standards standardized classification procedures and analysis of common misconceptions.brought under effective control. It has also developed the Emergency Response Plan for Chemical Environmental Incidents to The training combined case studies with hands-on demonstrations enabling employees to master waste classification standards
comprehensively enhance environmental risk prevention and control capabilities. effectively enhancing environmental awareness and practical sorting capabilities and laying a solid foundation for building a green
and low-carbon operating environment.Risk Identification Risk Assessment Risk Response Risk Management
Each department identifies Use a risk matrix to classify Develop environmental Continuously verify the
risks and opportunities environmental risk levels risk response plans effectiveness of control
based on its environmental based on likelihood and through strategies such as measures assess and
responsibilities. Where impact severity and following avoidance elimination optimize residual risks
necessary dedicated task a comprehensive and transfer and thus and make dynamic
forces are established to assessment of multiple capture green adjustments with proper
identify significant factors record in the Risk development opportunities. documentation retained.environmental aspects and Opportunity Assessment
taking into account past Survey Form and identify
present and future priority control items.conditions.Case Emergency Drill for Hazardous Chemicals & Hazardous Waste Conducted by Xindeco Optoelectronics
Environmental Public Welfare and Green Awareness Initiatives
The Company actively organizes and participates in various environmental public welfare
In June 2025 Xindeco Optoelectronics organized an
activities. Through tree planting and greening initiatives environmental awareness campaigns
emergency drill for hazardous chemicals and hazardous
and advocacy for energy conservation and emissions reduction it fosters environmental
waste leakage simulating a scenario involving the
awareness among employees and encourages broader public participation.overturning of a hazardous chemical storage tank. Under the
unified command of the chief coordinator all departments
worked in close coordination to complete procedures such Volunteers actively engage in community co-development programs continuously participating in
as site isolation personnel evacuation and leak containment initiatives such as the “Clean Homes Civilized Communities” campaign in Hubian and Gaolin
in an orderly manner demonstrating standardized and communities.efficient emergency response. The drill effectively validated
the practicality of the emergency response plan enhanced
“Hand-in-Hand” volunteers carry out environmental clean-up efforts in areas with sanitation
employees’ emergency response capabilities and further
challenges around communities and distribute waste classification materials to promote green
strengthened the environmental safety framework.lifestyles.Through platforms such as official WeChat account the Company releases sustainability-themed
Emergency Drill for Hazardous Waste Leakage Poster of World communications aligned with key events such as World Environment Day further expanding the Environment Day
social influence of green development concepts.Environmental Protection Training and Promotion
To strengthen employees’ environmental responsibility awareness the Company and its subsidiaries regularly carry out environmental Key During the reporting period the Company conducted a total of 49 environmental training sessions covering
Perfor-
awareness campaigns and training programs. Through a combination of online and offline approaches and leveraging platforms such as LED
mance 977 participants with a cumulative training duration of 40721 hours.displays to disseminate environmental knowledge the Company organizes periodic training on municipal solid waste classification and actively
participates in various environmental public welfare activities thereby enhancing overall environmental awareness and compliance capabilities
among employees. Note: The scope of data statistics includes Xindeco Supply Chain Xindeco Electronic Information Technology and Xindeco ITG Automobile Group.
41 422025 Sustainability Report
Pollutant Emissions Key Performance Indicators Unit 2025
Particulate matter (PM) emissions Tons 0.03
The Company consistently regards pollutant emissions management as a key aspect of
high-quality development. It strictly complies with the Law of the People’s Republic of Total waste gas emissions Tons 0.03
China on the Prevention and Control of Water Pollution the Law of the People’s
Republic of China on the Prevention and Control of Atmospheric Pollution the Law of
the People’s Republic of China on the Prevention and Control of Environmental Pollution Note: The scope of data statistics includes Xindeco ITG Automobile Group.by Solid Wastes the Law of the People’s Republic of China on the Prevention and
Control of Noise Pollution and other applicable laws and regulations. The Company
integrates environmentally friendly principles throughout its production and operations
actively fulfilling its responsibilities in advancing ecological civilization. At the same time
the Company places strong emphasis on environmental monitoring and continues to
strengthen environmental management and control. Xindeco Optoelectronics a
subsidiary of the Company engages qualified third-party monitoring institutions on an Wastewater Management
irregular basis to conduct pollutant emission testing and issue monitoring reports. During
the reporting period Xindeco Optoelectronics conducted testing of waste gas 2025 Monitoring Report for Waste Gas
Wastewater and Noise of The Company places great importance on the prevention and control of wastewater pollution. In accordance with applicable laws and wastewater and noise emissions with all indicators meeting applicable discharge
Xindeco Optoelectronics regulations it has established and continuously improved its wastewater management system and constructed high-standard wastewater standards.treatment facilities to ensure stable compliance with discharge standards thereby minimizing impacts on the surrounding water environment.Xindeco Optoelectronics and Xindeco IoT subsidiaries of the Company have both established the Wastewater Management Regulations to
standardize the treatment of domestic and industrial wastewater generated during production and operations. In addition Xindeco
Optoelectronics continuously optimizes its wastewater management processes based on its business characteristics reducing wastewater
generation at the source and promoting green and sustainable development. During the reporting period all wastewater generated by the
Waste Gas Management Company was discharged in compliance with the standards.Through improved management systems and categorized control measures the Company and its subsidiaries continuously enhance the
effectiveness of waste gas treatment. The subsidiaries have established the Waste Gas Management Regulations which define the detailed Wastewater Category Treatment Procedures
requirements for waste gas management. The production workshops are responsible for controlling organic waste gas while the General
Management Department oversees outsourced monitoring of emission conditions to ensure compliance with regulatory requirements and
minimize environmental impacts.Wastewater from cleaning machines and water cutting processes is pre-treated using integrated
Type of Waste Gas Treatment Measures air flotation systems before being discharged to water treatment facilities for further purification.Industrial wastewater
Oily wastewater is filtered through oil filters before being discharged into the sewer system. Filter
materials are replaced quarterly and disposed of by qualified hazardous waste treatment entities.Volatile organic
compounds (VOCs)
Collected through enclosed piping systems and treated via activated carbon systems before being
discharged upon meeting monitoring standards.Welding fumes
After treatment in septic tanks wastewater is discharged into the municipal pipeline network.Domestic wastewater Monthly inspections of the pipeline system and septic tank discharge conditions are conducted
Vehicle exhaust Official vehicles are regularly maintained and serviced and undergo periodic inspections as required to with water quality indicators monitored and any abnormalities promptly addressed.emissions ensure compliance with emission standards.Other volatile Volatile chemicals are stored in sealed containers to control the generation of VOC emissions.chemical emissions
Key Performance Indicators Unit 2025
Wastewater discharges Tons 57935.9
During baking and paint mixing operations paint booths are kept sealed and VOC photo-oxidation
purification equipment is used to reduce emissions.Paint booth exhaust Wastewater treatment volume Tons 57935.9
Activated carbon adsorption cotton and other exhaust filtration materials are regularly replaced to
further reduce emissions. Wastewater discharge intensity Tons/RMB 1 million 1.79
Note: The scope of data statistics includes Xindeco ITG Automobile Group and Xindeco Electronic Information Technology.
43 442025 Sustainability Report
Waste Management Key Indicators Unit 2025
The Company and its subsidiaries attach great importance to the standardized management of waste adhering to the principles of reduction Quantity of General waste generated Tons 13.20
harmless treatment and resource recovery. A waste materials management team has been established to handle packaging waste and scrap
materials reducing material loss and associated costs. Xindeco IoT has established the Hazardous Waste Management System strictly
Quantity of general waste disposed of Tons 13.20
implementing requirements such as dedicated container labeling and zoned storage and maintaining comprehensive inventory records to
ensure full traceability of hazardous waste throughout its lifecycle. At the same time Xindeco Optoelectronics adheres to the principles of 662
reduction harmless treatment and resource recovery for solid waste. It has established the Management System for the Prevention and Quantity of hazardous waste generated Tons
Control of Pollution from Chemicals and Hazardous Waste clearly designating the Company’s principal responsible person as the primary
662
accountable party for such work. A leading group for chemical and hazardous waste pollution prevention and control has been formed headed Quantity of hazardous waste properly disposed of Tons
by the General Manager and comprising department heads responsible for decision-making supervision and coordination of environmental
protection activities. By improving its institutional framework clarifying management responsibilities and standardizing disposal procedures the Note: The scope of data statistics includes Xindeco ITG Automobile Group and Xindeco Electronic Information Technology.Company continues to strengthen full lifecycle management of solid waste and effectively safeguard environmental safety.Management of Other Pollutants
To effectively maintain a sound production and living environment and prevent noise pollution the Company and its subsidiaries place high
importance on noise pollution prevention and control. Xindeco Optoelectronics has established and implemented the Noise Management
Regulations controlling noise generation through measures such as physical isolation and equipment maintenance. The General Management
Department is responsible for conducting at least monthly inspections of noise control performance with results recorded in noise supervision
and inspection logs. In addition third-party institutions are engaged annually to conduct noise monitoring ensuring that noise emissions
comply with applicable standards.Storage Area Bulletin Board for Hazardous
Waste Prevention and Control
Waste Categories Main Measures
Waste industrial alcohol
Temporary storage areas for hazardous waste are established and
waste cleaning agents
Hazardous waste equipped with appropriate signage. Hazardous waste is centrally collected
rags
and entrusted to qualified third-party institutions for safe disposal.and organic solvent waste
Low-value recyclable materials such as waste paper and cardboard are
handed over to recycling vendors;
Waste generated from renovation or maintenance projects is handled by
the responsible project departments;
Waste paper
Bulk recyclable materials such as brackets silver paste and other
used document bags
General waste temporary scrap are managed by the waste materials management team
and scrap parts from
which establishes a list of qualified recyclers and conducts bidding for
maintenance
sale;
Employee awareness of waste classification is enhanced through training
and promotional materials to ensure accurate sorting and disposal
practices.
45 462025 Sustainability Report
Resource Utilization Water Resource Management
The Company strictly complies with the Water Law of the People’s Republic of China and other applicable laws and regulations integrates the
principle of water conservation into daily operations and places strong emphasis on water resource management responsibilities to promote
scientific allocation and efficient utilization of water resources. In production and operations the Company continuously reduces water
Energy Management consumption per unit of output and improves water use efficiency by optimizing water use structures and promoting water-saving equipment
and advanced processes. At the same time supported by dynamic monitoring mechanisms the Company conducts routine inspections of
The Company places great importance on energy management strictly complies with the Energy Law of the People’s Republic of China and water supply systems and equipment maintenance promptly identifying and repairing leaks to achieve water conservation and efficiency gains
other relevant laws and regulations and continuously improves its energy management system to enhance energy efficiency. In its production through refined management.and operations the Company actively promotes the optimization of its energy structure vigorously advances the application of renewable
energy such as solar power and increases the proportion of clean energy consumption. At the same time it steadily advances various energy
Water Conservation Measures
conservation and emissions reduction initiatives driving the transition toward green and low-carbon development and supporting the
achievement of its sustainable development objectives.Emphasize water conservation
Case Intelligent Upgrade of Slitting Process awareness through posting
Actively promote reclaimed Leverage digital monitoring
reminders conducting regular
water reuse and recycling tools to implement dynamic
training sessions and
models to continuously management and control
organizing awareness
To improve the precision and efficiency of the slitting process and increase the rate of water throughout the water use
campaigns to enhance
address the high paper loss rate caused by delayed adjustments reuse; process.employees’ consciousness of
and low precision in traditional slitting methods Xindeco IoT has
water saving;
introduced advanced visual recognition and automated control
technologies. These technologies enable real-time monitoring and
automatic correction of deviations during the slitting process
improving precision to ±0.1 mm and reducing paper loss by 75%
with annual paper savings exceeding 1000 meters achieving
both economic and environmental benefits. Key Performance Unit
Total freshwater consumption Tons 75527.76
Miaosha Automatic Slitting
Deviation Correction System Total water consumption Tons 75527.76
Water consumption intensity Tons/RMB 1 million 2.33
Key Performance7 Unit Note: Key performance data cover the Company’s Supply Chain Business Division and its subsidiaries Xindeco ITG Automobile Group and
Xindeco Electronic Information Technology.Total purchased electricity kWh 29210213.70
PV generation consumption kWh 1758259.40
Gasoline Tons 100.99 Material Management
Diesel Tons 2.06
In materials management the Company adheres to the principles of green and low-carbon development and circular utilization systematically
Total energy consumption tce 3957.62 advancing green management initiatives across key stages such as raw material selection and material recycling and reuse. In procurement
and production processes priority is given to renewable recyclable and environmentally friendly materials enhancing the environmental
Energy consumption intensity tce/RMB 1 million 0.12
attributes of materials at the source. In production water-based coatings are comprehensively used to replace traditional oil-based paints
Renewable energy consumption tce 216.09 continuously promoting the application of environmentally friendly materials. At the same time the Company continuously optimizes material
recycling models reduces resource consumption and environmental impact and supports low-carbon operations and sustainable
Proportion of renewable energy consumption % 5.46 development.Note: Key performance data cover the Company’s Supply Chain Business Division and its subsidiaries Xindeco ITG Automobile Group and Xindeco Electronic
Information Technology.Key Performance Unit
Total quantity of packaging materials used Tons
7
The total energy consumption within the organization in this report is mainly calculated in accordance with the relevant conversion factors and formulas provided
in the China Energy Statistical Yearbook - Appendix 4 - Reference Coefficients for Converting Various Energy Sources to Standard Coal and the General
Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020). Note: Key performance data cover Xindeco Electronic Information Technology.
47 482025 Sustainability Report
Implementation of Green Operation
The Company actively responds to China’s “dual carbon” strategic goals and in line with the new development paradigm deeply integrates
the principles of the circular economy into its corporate strategy. Through measures such as innovating resource utilization models optimizing
production processes and promoting resource recycling it continuously enhances resource efficiency.Green Office
The Company and its subsidiaries actively support the development of ecological civilization by continuously improving environmental
protection measures strengthening environmental awareness among all employees promoting efficient resource utilization and integrating
green and low-carbon principles into daily office operations to create an environmentally friendly workplace.Green Office Initiatives
Environmental awareness content broadcast via Replacement with energy-efficient LED lighting
Double-sided printing and reuse of waste paper electronic screens
Waste sorting and environmental awareness campaigns
Xindeco
Priority procurement of environmentally friendly and recyclable materials such as biodegradable stationery
Supply
Chain and reusable office supplies
Standardized settings for air conditioning temperature in office areas
Posting of water conservation signage
Comprehensive replacement with energy-efficient LED lighting
Xindeco Advocacy for paper and water conservation
Optoelectronics Standardized waste sorting and labeling
Enhanced environmental awareness through electronic displays
Issuance of energy-saving initiatives
Xindeco Standardized settings for air conditioning temperature
IoT
Display of green office and water-saving signage in office areas
Water conservation signage Garbage Classification
49 502025 Sustainability Report
03
Innovation-Driven and Quality-Oriented
Approach for Long-Term Success
The Company has always centered innovation as its core driver with customer needs as its fundamental
guide continually injecting momentum into high-quality development. We strictly adhere to data security
management standards effectively safeguarding customer privacy and legal rights and establish a
comprehensive product lifecycle management system. By actively creating a sustainable supply chain we
consistently enhance industry value through practical actions.Our Actions SDGs Responded
Innovation-driven development
Product and service safety and quality
Data security and customer privacy protection
Supply chain management
51 522025 Sustainability Report
Innovation-Driven Development
Governance
ITG JD Digital Technology - ITG JD Digital Technology - Director ITG JD Digital Technology -
Director Member of the Fujian Big Member of the Xiamen Technology Regular Member of the Xiamen
The Company values and continuously improves its research and development (R&D) innovation system establishing specialized R&D teams
Data Chamber of Commerce Innovation Association Software Association Certificate
under each business unit. Through professional management at different business levels it achieve resource integration and refined
operations. To standardize the R&D implementation process and improve efficiency and quality Xindeco Digital Intelligence Technology has
formulated the Digital R&D Management Measures and established a Technical Review Committee responsible for evaluating and supervising
project feasibility. This creates a comprehensive and efficient R&D governance mechanism.Key
In 2025 the Company’s R&D investment reached RMB 38.8313 million accounting for 0.12% of the
Perfor-
mance revenue from core business operations.Xindeco Optoelectronics - Director Unit of Xindeco IoT - Director Unit of the Xindeco IoT - Executive Vice President of
the Xiamen Optoelectronic Semiconductor Xiamen Development Association the Third Council of the Xiamen Internet of
Industry Association for SRUI Enterprises Things Industry Association
R&D Team
The Company and its subsidiaries actively promote the training of R&D innovation talent focusing on building high-level R&D teams to provide
strong support for technological breakthroughs and the transformation of research results. ITG Digital Technology has successfully cultivated Construction of Innovation Platform
professional talents such as system analysts and architecture designers supporting technological innovation and efficient project advancement
with a high-quality team. The Company continues to deepen the construction of technological innovation platforms actively fostering the innovation capabilities of its
subsidiaries. As of the end of the reporting period Xindeco IoT Xindeco Optoelectronics ITG Digital Technology and Shandong Xindeco IoT
2025 R&D Personnel Information have been recognized as High-Tech Enterprises. ITG Digital Technology and Shandong Xindeco IoT have been recognized as SRUI SMEs.
Xindeco IoT has been recognized as a National SRUI “Little Giant” Enterprise and a Provincial Enterprise Technology Center. Additionally an
RFID Technology and Application Innovation Center has been established.The R&D team consists of 124 members accounting for 3.10% of the total employees.Key
35
Perfor- As of the end of the reporting period the Company has 4 national high-tech enterprises and 3 SRUI enterprises.
4 mance
51 Bachelor’s Degree66
Master’s Degree Under 30
By academic
qualification By age Between 30-50Doctoral Degree
Over 50
Others 85
25
Note: The scope of data statistics includes Xindeco Electronic Information Technology and Xindeco Digital Intelligence
Technology (Shandong Xindeco IoT) . Xindeco IoT - National SRUI Xindeco IoT - Provincial High-Tech Enterprise High-Tech Enterprise
“Little Giant” Enterprise Enterprise Technology Center Certification of Xindeco IoT Certification of ITG Digital
Technology
Joining Industry Associations
The Company and its subsidiaries always adhere to the philosophy of open collaboration for mutual benefit actively integrating into the industry
ecosystem. Xindeco Optoelectronics has joined the Xiamen Optoelectronic Semiconductor Industry Association; Xindeco IoT has joined the
Xiamen Development Association for SRUI Enterprises and the Internet of Things Industry Association; ITG JD Digital Technology has joined
the Xiamen Technology Innovation Association and the Xiamen Software Association among other industry organizations. Through deep
participation in industry communication and cooperation the Company continuously enhances its influence and voice in multiple fields such as SRUI SME Certification of High-Tech Enterprise Certification High-Tech Enterprise Certification SRUI SME Certification of
optoelectronics digital technology and the Internet of Things injecting new momentum into technological innovation and industrial synergy. ITG Digital Technology of Shandong Xindeco IoT of Xindeco Optoelectronics Shandong Xindeco IoT
53 542025 Sustainability Report
Strategy Impact Risk and Opportunity Management
Affected The Company and its subsidiaries have established a comprehensive risk management mechanism covering risk identification assessment
Risk Risk PPrroobbaabbiliiltiyty Impact Value Priority
Potential
ooff Impact Financial Response Measures response and management for R&D innovation activities to systematically identify potential risks scientifically evaluate their likelihood and CaTtyepgeory Description Magnitude Timeframe Chain Ranking
OOccccuurrreennccee Segment Impact impact develop targeted control measures and regularly assess and improve them providing robust support for the steady progress of R&D
innovation.Formulate the Management
Measures for New Product
During the new product
Development and the
development process Risk Focus on specific departments or business processes identifying potential risks from actual business
Control Procedures for
slow progress and Medium Identification scenarios.New Product Decreased Product Design and
Development products failing to meet High
and Operations
Medium High operating
long- downstream Development which strictly
Risks expectations may occur income
term regulate the management
due to insufficient
requirements throughout the Assess risks from both the frequency of occurrence and the degree of impact and determine their
management. Risk
new product development Assessment acceptability.process.Innovation-driven business Improve talent incentive Select response strategies based on the assessment results and develop corresponding Risk
requires a high demand systems collaborate with management plans or control measures with specific departments assigned to ensure accountability.Response
for highly skilled and universities to cultivate
versatile talent with risks Medium Increased targeted talent and promote
Talent such as recruitment and Medium Medium Operations Medium operating internal job rotation to
Risks long-
difficulties and high coststerm comprehensively meet the
Risk
Regular evaluate control measures to verify effectiveness and drive continuous improvement.turnover rates which talent needs of innovative Management
could impact the progress business.of innovation projects.Metrics and Targets
Affected
Opportunities Probability Impact Priority
Potential
Opportunity Description of Impact
Value
Magnitude Chain Ranking Financial Response MeasuresType Timeframe To anchor the direction of scientific research innovation the Company and its subsidiaries have established clear goals covering the entire
Occurrence Segment Impact process from innovation input output to value conversion. By leading innovation practices through strategic direction the Company translates
top-level design into practical actions continuously strengthening the foundation for technological independence and self-reliance and injecting
It is possible to shorten strong momentum into sustainable growth and industry leadership.R&D cycles share R&D Expand industry–academia–
costs and improve overall research collaboration
R&D efficiency by channels introduce external R&D Innovation Projects and Goals of Xindeco IoTResource Reduced
Collaboration integrating internal and High Upstream Medium Mid-term Medium operating R&D partners and share
Opportunity Operationsexternal R&D resources costs R&D resources. Main R&D Projects Proposed Goals Project Progress
and engaging in
industry–academia–research
collaboration. Technology Research for Low-Cost
To achieve new product
High-Weather-Resistant Special Electronic
R&D and mass production Achieved
Tag Development and Application
Introducing digital R&D
management tools can Advance R&D digital
enhance R&D project transformation by Anti-Human Interference Electronic To achieve new product Ongoing
Digitalization management efficiency Reduced
Tag Development R&D and mass production
Mid- introducing project
Opportunity reduce trial-and-error Medium Medium
Operations Medium operating
term management tools to
costs
costs and accelerate improve R&D management Anti-Tear Electronic Tag Series To achieve new product
the overall project Achievedefficiency. Product Development R&D and mass production
progress.
55 562025 Sustainability Report
Innovation-Driven Measures Cooperative R&D Initiatives
The Company uses innovation-driven growth as its engine continuously improving R&D incentive mechanisms strengthening talent The Company and its subsidiaries continue to deepen open collaboration actively promoting strategic innovation in partnership with
recruitment and development accelerating digital transformation deeply participating in industry exchanges and cooperation and promoting universities and industry peers. In the field of core RFID technologies Xindeco IoT in collaboration with a well-known university successfully
the synergy of technology talent and system-building elements to comprehensively enhance innovation effectiveness and development overcame the technical challenges of chip bonding technology. It has successfully integrated the M800 series chip enabling dual
competitiveness. empowerment in both key technological breakthroughs and application scenarios continuously enhancing its core competitiveness and
industry influence.Case Xindeco IoT × Xi’an Polytechnic University - Technology Breakthrough in ACP Packaging
R&D Incentives
The Company is committed to refining its R&D innovation incentive mechanism continuously optimizing the technological innovation incentive To address the packaging requirements of the ultra-high frequency M800 chip Xindeco IoT partnered with experts from Xi’ansystem and fully unleashing the vitality of innovation and creativity. Xindeco Electronic Information Technology a subsidiary has developed the Polytechnic University for a specialized collaboration. Through a dual approach of “theoretical simulation + experimentalTechnological Progress Reward Management Measures establishing three categories of technological progress awards. These measures verification” the team investigated the curing mechanism rheological properties and interface bonding strength of anisotropic
define corresponding reward systems aiming to ignite the enthusiasm and innovative drive of technical personnel in R&D. The program conductive paste (ACP) in chip packaging. This research further improved the yield and long-term stability of the automated
encourages tackling key technologies and producing scientific achievements effectively accelerating the transformation application and production line.industrialization of technological outcomes.Innovation Empowerment
Presentation of Innovation Achievements
The Company and its subsidiaries continue to deepen the cultivation of R&D innovation talent actively building platforms for technical
exchanges and learning to help R&D teams broaden their perspectives and enhance their professional capabilities. During the reporting
period Shandong Xindeco IoT organized several technical training sessions for R&D personnel such as “AI Technology Capability Sharing” The Company and its subsidiaries continue to focus on the core technologies of the IoT RFID field achieving significant innovation results.and “Analyzing the Characteristics of Generative AI Technology and Industry Innovation Opportunities” effectively expanding the innovative Xindeco IoT’s self-developed “High-reliability Implantable RFID Anti-metal Electronic Tag” has reached international advanced standards in
thinking and enhancing the innovation capabilities within the R&D team. some technical indicators. The general retail label “VersaMini” known for its ultra-compact design and anti-interference technology won the
China IoT Industry Innovative Product Award.Case High-reliability Implantable RFID Anti-metal Electronic Tag
The “High-reliability Implantable RFID Anti-metal Electronic Tag” developed by
Xindeco IoT has received recognition from the Xiamen Center for Sci-Tech
Achievements Transformation. Some of its technical indicators such as metal
surface read distance have reached international advanced levels highlighting
the company’s independent innovation strength and technological leadership in
the development of core IoT RFID components.Technology Achievement Evaluation
Case General Retail Label “VersaMini”
Technology Training Onsite
Xindeco IoT’s self-developed “VersaMini” general retail label with its ultra-
compact design can be flexibly attached to various product surfaces
Digitalization effectively addressing the spatial limitations in retail environments. The
label also incorporates unique anti-interference technology and the latest
The Company continues to advance its digital transformation. Xindeco Optoelectronics actively deployed the MES and U8 systems to generation chip technology supporting a wider automatic tuning frequency
achieve refined management of the production process and optimize resource allocation. Concurrently the Company implemented the OA range. This ensures the stable performance of the label in various complex
office platform promoting internal collaboration and intelligent upgrading of office processes. Through digital means the Company enhances retail applications.operational efficiency injecting innovative momentum into its high-quality development. In addition the Company’s digital intelligence
technology sector integrates advanced technologies such as artificial intelligence cloud computing big data and the Internet of Things. It is
developing applications in areas like smart transportation smart city management and smart parks aiming to foster the development of a
digital ecosystem.
57 582025 Sustainability Report
Intellectual Property Protection
Product and Service Safety and Quality
The Company strictly adheres to relevant laws and regulations such as the Patent Law of the
People’s Republic of China the Copyright Law of the People’s Republic of China and the
Trademark Law of the People’s Republic of China and is committed to protecting intellectual
property rights including patents copyrights and trademarks. The Company has formulated the
Trademark and Brand Name Management Measures which clearly stipulate key aspects such Governance
as trademark registration changes renewals transfers licensing and protection continuously
strengthening intellectual property management. During the reporting period the Company did The Company continues to improve its product quality and safety
not experience any intellectual property infringement incidents. Intellectual Property Management management system. Xindeco Optoelectronics follows the quality Quality Control Center
System Certification ofAs of the end of the reporting period the Company’s subsidiary Shandong Xindeco IoT has policy of “Customer First Quality First High Quality and Stability Shandong Xindeco IoTpassed intellectual property management system certification. Continuous Improvement” and has developed the Quality
Environmental Occupational Health and Safety Management
Both the Company and its subsidiaries focus on protecting their own intellectual property rights while fully respecting the intellectual property Manual. In terms of organizational structure Xindeco Optoelectronics
rights of others. Xindeco Digital Intelligence Technology clearly defines that R&D achievements belong to the Company prohibiting employees has established a Quality Center which includes the Quality Quality Inspection Quality Assurance
from using or sharing them without authorization with legal accountability for violations. ITG Digital Technology has detailed software project Inspection Department and Quality Assurance Department fully Department Department
classifications specifying that the intellectual property rights for outsourced development belong to the Company while co-developed responsible for quality control system maintenance data analysis
intellectual property rights are determined according to agreements ensuring clear ownership and standardized management of R&D Organizational Structure of Xindeco Optoelectronics for and testing equipment management throughout the entire process Quality Management
outcomes. from development to mass production. This ensures stable and
reliable product quality.Case Intellectual Property Awareness Week As of the end of the reporting period Xindeco’s subsidiaries including Xindeco Optoelectronics Shandong Xindeco IoT Xindeco Intelligent
IoT ITG JD Digital Technology and ITG Digital Technology successfully passed quality management system certification. Additionally Xindeco
Optoelectronics obtained CCC and CQC product certifications continuously ensuring compliance and reliability in product and service quality
To implement the national intellectual property strategy in April 2025 Xindeco’s
through a robust certification system.Legal Department organized a series of activities for Intellectual PropertyAwareness Week. The activities themed “Intellectual Property and ArtificialIntelligence” focused on cutting-edge issues related to intellectual property
protection in the AI era. Through case analysis policy interpretation and other
multi-dimensional educational efforts the Company comprehensively enhanced
employees’ intellectual property protection capabilities and promoted theCompany’s philosophy of “Intellectual Property Safeguarding InnovationTechnology Empowering the Future”.Quality Management Quality Management Quality Management
Key System Certification of Xindeco System Certification of System Certification of
Perfor- As of the end of the reporting period the Company had accumulated 255 authorized patents with an effective Optoelectronics Shandong Xindeco IoT Xindeco Intelligent IoT
mance
patent count of 0.0079 per million RMB in revenue. Among them the Company holds 32 invention
patents 157 utility model patents and 66 design patents. Additionally there are 146 software copyrights
and 2 trademarks with software copyrights amounting to 0.0045 items per RMB 1 million in revenue.In 2025 the Company authorized 38 patents including 10 invention patents 19 utility model patents and
9 design patents. The Company also filed 30 patent applications during the year.
Science and Technology Ethics CCC Certificate CQC Certificate
The Company consistently upholds the value of technology for good embedding ethical principles throughout the entire product development
process. It strictly adheres to data privacy algorithm fairness and research integrity ensuring that technological innovation always serves Key During the reporting period the Company and its subsidiaries did not experience any significant safety or quality
societal development and human well-being. With a responsible attitude the Company promotes the healthy development of the industry Perfor- incidents related to products or services.mance
building a trustworthy secure and inclusive technological application ecosystem. During the reporting period the Company did not experience
any incidents of illegal or unethical behavior related to technological ethics.
59 602025 Sustainability Report
Strategy The Company systematically identifies risks and opportunities in its activities products or services Risk and Opportunity from six dimensions: “People Machines Materials Methods Environment and Measurement”
Identification
considering three states and three tenses.Affected
Probability Potential Using a risk analysis matrix the Company comprehensively evaluates the likelihood and impact of Risk Risk Impact Impact Value Priority
Type Financial Response MeasuresDescription of Magnitude Timeframe Chain Ranking Risk Analysis risks assessing both inherent and residual risks with the analysis results recorded in the Risk and
Occurrence Segment Impact Opportunity Assessment Survey Form.Establish the Operating Based on the analysis results and considering legal regulations resource allocation risk tolerance
Inconsistent quality during Procedures for Inspection Risk and Opportunity
Short and stakeholder requirements the Company identifies risks and opportunities that must be addressed the production process may and Testing Control and Increased Evaluation
Quality lead to unstable product to operating guidelines identify or prioritized and records the evaluation outcomes.Medium High Operations High operating
Risks quality increased rework medium key quality points in the
costs and customer costs production process and For risks that need to be addressed the Company takes measures to avoid eliminate alter share or term Risk and Opportunity
complaints risks. strengthen process retain the risks in order to reduce them. For opportunities the Company takes actions such as
monitoring. Handling adopting new methods exploring new markets or forming partnerships to enhance benefits.Failure to effectively address Standardize the customer Evaluation and The Company verifies the effectiveness of control measures and assesses the acceptability of
customer complaints may Short complaint handling process Improvement of Risk and residual risks. The risk management process is continuously improved based on internal and external
result in reduced customer Decreased and requirements establish Opportunity Management
Management to Downs- environmental changes and the expectations of stakeholders.satisfaction and negatively Medium Medium High operating a rapid response
Risks impact customer medium tream income mechanism and ensure
relationships and corporate term complaints are resolved in a
reputation. timely and effective manner.Key
Perfor- During the reporting period Xindeco Electronic Information Technology conducted 3 internal quality audits.mance
Affected
Opportunity Probability Impact Priority Potential
Type Opportunity Description of
Impact Value
Magnitude Chain Ranking Financial Response MeasuresTimeframe
Occurrence Segment Impact
Customer loyalty will be
enhanced by adhering to a Establish a customer
demand tracking Metrics and Targetsbusiness strategy centered
Customer- on customer needs and Increased mechanism and incorporate
Long- Downs-
satisfaction and customer feedback into the oriented High High High operating The Company continues to strengthen product quality and safety control guiding Xindeco Optoelectronics to set quality objectives for 2025
term tream product and service
Opportunities continuously optimizing income based on key metrics such as customer complaint rates incoming material inspection pass rates and warehouse acceptance rates. Through
products and services to improvement process to
continuously improve goal-driven and process-controlled management the Company ensures stable and reliable product quality. The Company oversees the quality improve customer
experience. customer satisfaction.management system improvement and monitors and evaluates the achievement of quality goals across subsidiaries continuously improving
overall quality control and customer satisfaction.Core corporate
competitiveness and market Medium Increase market
Market vitality will be enhanced by Increased development efforts
and Downs- 2025 Quality Objectives of Xindeco Optoelectronics Achievement
Expansion actively expanding market High High High operating optimize the sales network
Opportunities business continuously
long- tream
income layout and improve market
developing new customers term coverage and penetration. Customer complaint rate ≤ 3
and exploring new regions.Incoming material inspection pass rate ≥ 98.8%
First inspection pass rate ≥ 99%
For products under TOP category with capacity ≥ 10KK acceptance rate ≥ 98.5%
Product acceptance
rate upon entry For products under TOP category with capacity < 10KK acceptance rate ≥ 97.7%
Impact Risk and Opportunity Management Achieved
For multi-in-one products acceptance rate ≥ 90.8%
Warehousing inspection pass rate ≥ 99%
The Company integrates product quality and safety along with risk prevention and control into its core management framework. Xindeco
Optoelectronics has established a full-process risk management mechanism based on the Risk and Opportunity Management Procedures
Shipment batch inspection pass rate ≥ 99%
covering risk and opportunity identification analysis evaluation and handling. This ensures that risks and opportunities affecting product
quality are effectively controlled continuously meeting stakeholder requirements.Batch test pass rate ≥ 99%
61 622025 Sustainability Report
Control Measures
Key During the reporting period the Company did not experience any product recalls due to health and
Perfor- safety concerns.mance
Product Quality Control
To strictly implement the Company’s quality control requirements Xindeco IoT and Xindeco Optoelectronics have developed
and implemented quality control measures based on documents such as the Inspection and Testing Control Procedures and
the Operating Procedures for Inspection and Testing Control. These measures focus on key inspections such as incoming Quality Culture Development
material inspection process inspection and final inspection to ensure that all quality characteristics meet the prescribed
In 2025 the Company continued to strengthen the development of quality talent organizing internal audits of the quality management system
requirements.and specialized training on specific processes within its subsidiaries. This effectively enhanced employees’ professional skills and quality
control capabilities laying a solid foundation for quality management and ensuring the Company’s high-quality development.Key Node Quality Control Measures of Xindeco IoT
After receiving materials in the warehouse’s pending inspection area the Quality Management Department
Incoming verifies the supplier qualifications and performs inspections according to standards. Qualified products are Case Training on Quality Management System for Internal Auditors
Material Inspection stored while unqualified products are processed according to procedures. Emergency release of urgently
needed materials can be approved with samples for tracking.Inspection personnel strictly follow inspection specifications and operating guidelines to inspect semi-finished In 2025 Xindeco Optoelectronics organized a training session on quality
Process Inspection products and production processes record inspection results and handle unqualified products as per management system for internal auditors. The training covered core content
procedures. such as ISO 9001 and other quality management system standards internal
audit processes audit techniques and non-conformance corrective actions.Self-manufactured and externally purchased finished products are inspected according to the corresponding Internal auditors from relevant departments participated in the training. The
processes before packaging. Products past the storage period undergo sampling checks before shipment.Final Inspection Inspection results are recorded and unqualified products are processed and clearly labeled according to training effectively enhanced the professional abilities of the internal audit
procedures. team and strengthened the effectiveness and compliance of the system’s
operations providing talent support for continuous improvement in quality
management.Key During the reporting period Xindeco Electronic Information Technology engaged third-party institutions for random
Perfor-
mance inspections 9 times with a product pass rate of 98.50%. Case Specialized training
On September 23 2025 Xindeco Intelligent IoT organized specialized training with employees from multiple departments
participating. The training covered core topics such as special process operation specifications environmental management and
safety operation procedures. After assessment all participants met the qualification standards. The training strengthened employees’
Digital Quality Control System Development awareness of quality control in special processes and their ability to operate safely laying the foundation for improving process
stability and compliance.Xindeco IoT has independently developed a digital DIP system that constructs a complete quality control loop through real-time performance
monitoring and online visual alerts. The system enables customers to trace the entire product lifecycle locate issues within seconds and gain
insights into production status for full-chain quality control. Each tag is given a complete digital file effectively reshaping RFID product quality
control standards and providing strong technical evidence and service support for the “Made in Xindeco” quality commitment.Hazardous Substances Monitoring Key During the reporting period Xindeco Electronic Information Technology conducted 12 quality training
Perfor-
mance sessions with a total training duration of 210 hours and 291 participants.Xindeco Optoelectronics has established the Environmental Hazardous Substance Management Standards
implementing full-process control of hazardous substances in raw materials production processes and finished
products. It has defined the classification of substances under control requiring suppliers to provide third-party test
reports. Through inspections at various stages - IQC IPQC and OQC - and multi-departmental collaboration
Xindeco Optoelectronics ensures that products comply with domestic and international environmental regulations
and customer requirements. During the reporting period Xindeco Optoelectronics commissioned a third-party Product Accessibility
professional organization to conduct RoHS hazardous substance testing. Hazardous Substance
Testing Report The Company remains committed to enhancing the accessibility of its products and services to meet the diverse needs of the market. In the
digital intelligence technology sector the Company provides customized solutions for smart transportation smart parks and other applications
Product Recall
helping customers reduce the barriers to digital transformation. The IoT business focuses on RFID electronic tags and system integration
widely applied in industries such as retail logistics and food traceability offering diverse service scenarios. The optoelectronics business
Xindeco Optoelectronics follows the Non-Conforming Product Management Measures and the Operating Procedures for Non-Conforming
continues to introduce cost-effective LED products meeting the needs of various fields such as flat-panel displays and lighting. The supply
Product Control to ensure the effective identification and control of non-conforming products discovered after delivery. When quality issues
chain sector provides full-process value-added services to meet the diversified trade needs of bulk commodities. The automotive dealership
arise with products the Company takes measures such as isolation recall and halting supply. If necessary customers are notified and non-
sector builds a customer-centric automotive service ecosystem covering emerging areas such as new energy and used cars continuously
conforming products are repaired downgraded or accepted under concession with subsequent revalidation to ensure compliance thereby
expanding service channels and enhancing user reach and experience.safeguarding customer rights and product quality.
63 642025 Sustainability Report
Customer Service Guarantee Customer Satisfaction
The Company and its subsidiaries strengthen customer communication and service improvement continuously improving the customer
satisfaction evaluation system. Xindeco Optoelectronics annually distributes the Customer Feedback Inquiry Form to customers via mail fax
or personal delivery. The Sales Center is responsible for conducting customer satisfaction analysis and completing the Statistical Analysis
Customer Service Management Form for Customer Feedback.During the reporting period Xindeco Optoelectronics conducted a customer satisfaction survey covering aspects such as product quality
The Company adheres to a user-centric approach continuously providing users with professional and efficient products and services. In the
after-sales service on-time delivery complaint handling and return processing. The feedback form recovery rate was 100% with an overall
automotive dealership sector the Company adheres to the philosophy of “Leading Quality Automotive Life” and has built a comprehensive
satisfaction rate of 97.33%. Xindeco Intelligent IoT conducted satisfaction surveys via telephone and produced a special analysis report
customer service system covering car purchase consultation configuration recommendations price transparency financial services after-sales
achieving an overall satisfaction rate of 95.7%.support and regular maintenance continuously enhancing customer experience and service value.In the digital intelligence technology sector Xindeco Digital Intelligence Technology has established the Management Measures for Digital
System Operation and Maintenance creating a well-structured O&M management framework. The Compliance Department is responsible for
supervising and inspecting the service quality of each O&M team and coordinating the collection and feedback of customer satisfaction
regarding O&M services.Key
In the optoelectronics sector Xindeco Optoelectronics has developed the Operating Procedures for Business Management and the Customer During the reporting period a total of 26530 customers participated in the survey with customer satisfaction Perfor-
Complaint and Return Control Procedures with the Sales Center taking the lead in handling customer complaints returns and after-sales mance
services. Through customer classification and management the Company further improves the after-sales process to provide more rates as follows: Xindeco Digital Intelligence Technology at 95.70% Xindeco Electronic Information Technology
standardized services.at 94.28% and Xindeco ITG Automobile Group at 98.00%.Management of Customer Complaint
To ensure that complaints are addressed promptly and appropriately the Company requires its subsidiaries to establish a rapid response
mechanism. Xindeco Digital Intelligence Technology mandates that O&M leaders promptly respond to issues and requests raised by users
record them on time and follow up on progress. For high-frequency application issues a regular compilation of operating guidelines is
created. Shandong Xindeco IoT has also developed the Project After-Sales Service Management System incorporating after-sales service
into employee performance assessments clearly defining proactive and reactive after-sales processes and regularly holding workshops to
enhance after-sales service capabilities. Responsible Marketing
In addition Xindeco Optoelectronics collects customer feedback by such means as customer calls and on-site visits documenting it in the
Customer Complaint Feedback Form and routing it for processing according to the type of issue. The Sales Center tracks and manages the The Company and its subsidiaries strictly adhere to the Advertising Law of the People’s Republic of China and other relevant laws and
entire process providing consistent responses to customers and standardizing the return and exchange process thereby ensuring a closed- regulations and follows principles of integrity and compliance in conducting various marketing and promotional activities. Shandong Xindeco
loop management system for customer requests. IoT has formulated the Sales Pricing Management Measures further clarifying the responsibilities for sales price management. It strictly
prohibits unauthorized price adjustments without approval. In cases of unauthorized price adjustments the responsible party shall bear full
responsibility and make compensatory payments in accordance with regulations ensuring that price management is standardized orderly
transparent and controllable and embodying a responsible marketing philosophy through honest pricing.Key During the reporting period there were 58 customer complaints of which 54 were resolved representing a
Perfor-
mance customer complaint resolution rate of 93.10%. There were 28 assessments on customer complaint
response with a 100% pass rate for such assessments. Key During the reporting period there were 0 incidents of violating laws and regulations related to marketing
Perfor-
mance communications (including advertising promotions and sponsorships) or voluntary codes of conduct.Customer Service Training
The Company and its subsidiaries place great emphasis on
improving after-sales services by regularly organizing internal
workshops to discuss after-sales challenges and share
experiences thus improving response speed and customer
satisfaction. During the reporting period Xindeco Optoelectronics
organized specialized training on shipping requirements for
different batches further standardizing service processes.Training on Shipping Requirements for Different Batches
65 662025 Sustainability Report
Data Security and Customer Privacy Key
Perfor- During the reporting period the Company did not experience any major information security incidents or data
mance breaches.Protection
Data Security Management
To strengthen network and information security and mitigate the risks of data leakage and loss the Company has established the Technical Data Security Risk Management
Management System for Information Security and the Information Security Personnel Management System creating a clear and efficient
management structure with clearly defined responsibilities and continuously improving its information security management system.The Company and its subsidiaries place great emphasis on information security risk prevention and control. ITG Digital Technology hasestablished a comprehensive risk management mechanism that covers the entire process of “risk identification assessment and classificationmitigation and corrective action and re-assessment and tracking” effectively preventing and reducing information security incidents.Information Security Management Structure
The Comprehensive Management Department identifies threats faced by information assets and
Network and Information Responsible for the overall network security and informatization of the Company’s Risk Identification
existing control measures based on the environmental conditions of the assets using a threat
Security Leadership Group systems and for coordinating and resolving major related issues. classification table.The Comprehensive Management Department in consideration of existing control measures
Responsible for the specific affairs of the leadership group such as organizing quarterly quantifies the likelihood and impact of threats to important information assets and ultimately compiles
Network and Information Risk Assessmentnetwork and information security meetings summarizing quarterly priorities and setting
Security Office the Information Security Risk Assessment Report.plans for the next quarter.Based on the results of the risk assessment the Comprehensive Management Department
Digital Management Responsible for managing the Company’s network and information security information Risk Handling
determines the acceptability of risks and formulates a mitigation plan and corrective actions for
Department system construction and daily operation and maintenance. unacceptable risks.The Company conducts an annual risk re-assessment and initiates immediate evaluations in the
Risk Re-assessment event of major incidents or system changes. Additionally it continuously updates the list of
During the reporting period ITG JD Digital Technology ITG Digital Technology and Shandong Xindeco IoT successfully passed the ISO
information assets to ensure that risk management remains effective and up-to-date.
27001 Information Security Management System certification while Xindeco Optoelectronics obtained the Level II Cybersecurity Protection
Certificate.Information Security Inspections
The Company regularly conducts network security inspections covering endpoints servers and network devices. This helps in identifying
information security vulnerabilities and implementing corresponding remediation and preventive measures. These actions effectively
eliminate potential risks and enhance the overall network defense capability ensuring the secure and stable operation of systems.Emergency Response Plan
The Company has developed the Emergency Response Plan for Network and Information Systems and established a tiered and classified
Information Security Information Security Information Security Cybersecurity Protection emergency mechanism for network security incidents. It also organizes regular emergency drills. This plan covers full-process management
Management Management System Management Registration Certificate including monitoring and early warning emergency response and post-incident handling. It details response measures for different levels of
System Certification of Certification of ITG System Certification of of Xindeco Optoelectronics incidents and is continuously updated through annual assessments and dynamic revisions enhancing the Company’s ability to handle
ITG JD Digital Technology Digital Technology Shandong Xindeco IoT network security incidents and ensuring the safe and stable operation of network and information systems.
67 682025 Sustainability Report
Data Security Management Measures Supply Chain Management
The Company and its subsidiaries are committed to building a comprehensive multi-layered information security protection system. Focusing
on “technical protection access control physical security and data backup” the Company has developed comprehensive safeguards covering
networks systems data and physical environments to ensure the confidentiality integrity and availability of information assets.Governance
Virus and Vulnerability Prevention Access Control
The Company places a high emphasis on supply chain governance. By formulating policies such as the Supply Chain Business Logistics
Management Regulations and the Supply Chain Business Credit Management Measures the Company has established and improved a
Hosts must have antivirus software installed The Company implements real-name customer credit evaluation system. Building on this Xindeco Digital Intelligence Technology has established the Qualified Supplier
and regularly upgraded for detection. management for networks and accounts Management Measures for Software Outsourcing Services implementing full-process management for supplier access evaluation and
Servers must have firewalls deployed for and requires default account passwords to elimination. Similarly Xindeco Optoelectronics has introduced the Supplier Management Measures the Operating Procedures for Procurement
real-time monitoring with regular be changed promptly. It follows the principle Control and the Supplier Release Management Measures. These measures clarify that the Procurement Department is responsible for
vulnerability scans and timely patches of least privilege and prohibits supplier development and management working together with the Quality Management Department and the Technical Center to conduct
applied to operating systems and Information unauthorized actions and excessive supplier evaluations and monitoring ensuring that all processes from source to release are standardized and controlled continuously
databases. Security privilege assignments. improving the quality assurance for supply chain.Management
Physical and Environmental Security Strategies Data Backup
Strict visitor management is enforced with A data backup system is in place to Strategy
non-technical personnel generally not regularly back up application services
allowed to enter the data center. Equipment databases documents logs and other
inspection personnel conduct regular information with a defined minimum Affected
Risk Probability Impact Potential Risk Impact Value Priority inspections and complete inspection logs. retention period to prevent data loss. Type of Magnitude Chain Ranking Financial Response MeasuresDescription Timeframe
Occurrence Segment Impact
Inadequate supplier Formulate management
Cybersecurity Training evaluation criteria and risk policies related to supplier
classification could lead to evaluation to clearly define
Increased
The Company and its subsidiaries actively fostering an information security culture incorporating security awareness into daily management. Management ineffective management Mid- supplier classifications and
Risks potentially causing risks
Low Medium Upstream Medium operating evaluation criteria.During the reporting period Xindeco IoT organized a network security awareness training session focusing on core topics such as virus termsuch as insufficient costs
protection information leakage prevention and password security. Real-life case studies were used to explain network security threats and production capacity and
protective measures strengthening employees’ awareness of security and their ability to identify risks reinforcing the Company’s information supply interruptions.security defenses.Due to a lack of
understanding of the Develop the Operating
supplier’s production
Key During the reporting period Xindeco Digital Intelligence Technology conducted 2 data security training sessions Procedures for Procurement processes or other factors Control which require
Perfor- that may affect product Increased
Procurement Short- relevant personnel to clearly mance with a total duration of 88 hours and 44 participants quality the Company may Medium Medium Upstream Medium operating
Risks term define quality standards and fail to clearly communicate costs control requirements
quality parameters and throughout the procurement
control points to suppliers process.resulting in substandard
incoming materials.Customer Privacy Protection
The Company strictly complies with the Personal Information Protection Law of the People’s Republic of China and other relevant laws and Affected
Probability Potential
regulations. It has implemented policies such as the WeCom Operation Management Regulations (Trial) and ensures customer information Opportunity Impact Opportunity Description of Impact Value
Priority
Type Magnitude Timeframe Chain Ranking
Financial Response Measures
security through measures like data encryption access control backup recovery and encrypted communication. At the same time the Occurrence Segment Impact
Company strictly prohibits employees from copying or retrieving unnecessary information without authorization. Confidentiality agreements are
signed with relevant parties and regular system screenings and customer follow-ups are conducted to promptly identify and address potential It is possible to build Continuously improve the
risks ensuring that customer privacy is not leaked or misused. greater confidence and Supplier Management
loyalty among suppliers by Measures and related
establishing a standardized Increased systems and maintain
Reputation Mid-
supplier classification and standardized and High Medium Upstream Medium operating
Opportunities management mechanism term transparent procedures in income supplier access evaluation
Key During the reporting period the Company did not experience any incidents involving violations of information security and enhancing the
Perfor- or privacy protection. transparency and fairness
and release to foster a fair
mance of supplier management. and cooperative supply
chain ecosystem.
69 702025 Sustainability Report
Impact Risk and Opportunity Management Key Performance Indicators Unit 2025
Total Number of Suppliers / 1603
The Company fully integrates risk management into the entire supply chain governance process and has developed the Detailed Rules for
the Working of Risk Review Meeting of the Supply Chain Sector. This establishes two levels of risk review meetings continuously improving
the risk review mechanism. A credit assessment team has also been set up to evaluate the creditworthiness of trading partners and issue East China / 892
reports effectively preventing potential risks. Meanwhile Xindeco Optoelectronics has established a risk management process covering risk
identification assessment and response ensuring the standardized control of supply chain risks.South China / 271
Process Management Measures North China / 149
Central China / 33
Accurately identify potential risks in the supply chain and clarify risk sources and specific
Risk Identification
manifestations.Southwest China / 39
Northwest China / 23
Conduct a comprehensive assessment of identified risks classify them based on the likelihood and
Risk Assessment impact and determine whether the risk is acceptable.Northeast China / 17
Hong Kong Macau and Taiwan / 78
Develop risk control measures assign responsible departments and continuously track the
Risk Response
implementation of corrective actions. Other Regions in Asia / 59
Europe / 19
Americas / 18
Metrics and Targets
Oceania / 5
The Company and its subsidiaries continuously strengthen green control in the supply chain. Xindeco Optoelectronics for example has set
supply chain management goals focused on environmental compliance of materials. It has established clear limits on harmful substances in
supplied materials controlling material quality at the source and driving the continuous optimization of the supply chain towards green safe Number of Local Suppliers / 666
and sustainable practices.Percentage of Local Suppliers % 41.55
Supply Chain Indicators of Xindeco Optoelectronics Achievement in 2025
Localized Procurement Expenditure Ratio % 10.97
New control for five harmful substances in supplied materials
with a content limit of no more than 0.1%.Achieved
Note: The scope of data statistics includes Xindeco Digital Intelligence Technology(Shandong Xindeco IoT+Xindeco Intelligent IoT) Xindeco
Total fluorine content in supplied materials not exceeding 50 ppm. Electronic Information Technology Xindeco ITG Automobile Group and Xindeco Supply Chain.
71 722025 Sustainability Report
Full Lifecycle Management of Suppliers Supplier ESG Management
The Company upholds the principles of fairness transparency integrity and compliance implementing full-process closed-loop management
The Company adheres to both domestic and international laws and regulations integrating human rights protection into the management of
around key steps such as supplier access evaluation and exit. The Company actively builds a standardized orderly and collaborative supply
the entire value chain. It actively builds cooperative relationships based on integrity transparency and mutual respect. By promoting green
ecosystem to ensure a stable and efficient supply chain.and responsible procurement the Company incorporates environmental and social responsibility requirements into its evaluation criteria for
partners strengthening the assessment of suppliers’ sustainability performance and prioritizing suppliers with excellent sustainability outcomes.A credit assessment team has been established to independently investigate and evaluate suppliers’
Supplier business conditions judicial risks environmental protection and work safety performance. When
Access
necessary third-party credit investigations are commissioned to ensure standardized access. Integrity Supply Chain
Through email communication on-site audits trade exhibitions and third-party monitoring channels The Company consistently regards anti-corruption governance as a critical baseline for supply chain management. Xindeco Digital Intelligence
Supplier the Company regularly follows up with suppliers and conducts random checks to ensure the accuracy Technology has developed the Operational Materials and Services Procurement Management Measures which specify that the management
Audit
and validity of information. team holds primary responsibility for preventing procurement-related corruption risks and appoints a dedicated procurement supervisor. Anti-
corruption clauses are embedded in procurement documents and contracts while an integrity commitment system is implemented. This
Supplier assessments are regularly conducted based on dimensions such as business nature credit system defines the obligations and responsibilities of the commitment parties with the bidding team organizing the signing of integrity
Supplier
strength qualifications and management levels along with additional factors like quality system commitment letters ensuring that anti-corruption responsibilities are assigned and adhered to by every individual involved. Additionally
Evaluation
certification customs certification industry position and digital warehouse management capabilities. Xindeco Digital Intelligence Technology requires suppliers to sign the Integrity Commitment Letter and the Confidentiality Agreement and
actively promotes business ethics policies to ensure fair and clean cooperation.At least one round of supplier re-evaluation is completed annually and suppliers failing to pass the Xindeco Optoelectronics explicitly prohibits commercial bribery in its framework agreements strictly forbidding any form of benefit transfer to
Supplier review and with ineffective rectification are delisted. A “one-strike policy” is enforced for key issues such
Exit key positions such as procurement and quality inspection personnel and enforcing strict internal compliance. The Company has also set up
as dishonesty or safety hazards ensuring immediate termination for non-compliant suppliers. audit supervision hotlines and emails to facilitate external oversight encouraging the reporting of integrity risks.Green Supply Chain
Digitalization
The Company and its subsidiaries have been actively engaged in building a green supply chain continuously promoting low-carbon and
Xindeco Optoelectronics actively advances the digital transformation of its supply sustainable development across the entire industry chain. Xindeco Optoelectronics actively advances environmental management system
chain by introducing systems such as SRM U8 and OA. An integrated electronic certifications of suppliers signing the Environmental Protection Agreement with contractors and implementing multiple measures to meet
platform for the supply chain has been built creating a fully digital closed-loop environmental management requirements.process from “purchase request - sourcing execution - approval control - orderfulfillment - settlement and payment.” This enables online visualized and
traceable supply chain management.Responsible Supply Chain
U8 System The Company and its subsidiaries actively practice the concept of responsible supply chain development. Xindeco Optoelectronics
Procurement Training
strengthens supplier access and pre-production control requiring suppliers to sign quality assurance agreements provide standard documents
for hazardous substance control and submit special testing reports including ROHS REACH and MSDS. At the same time Xindeco
The Company and its subsidiaries continue to strengthen the cultivation of procurement talent. During the reporting period Xindeco
Optoelectronics conducts specific investigations into conflict minerals requiring suppliers to truthfully complete the Conflict Minerals & Cobalt
Optoelectronics organized multiple specialized training sessions for procurement officers. The training covered topics such as supplier
and Mica Usage Survey reinforcing the compliance of the responsible supply chain at the source.management cost and price management ERP operations quality and delivery control basic standards for procurement and professional
ethics with the aim to comprehensively enhance the professional capabilities of procurement personnel and provide strong support for the
standardized and refined operation of procurement activities. Key Performance Indicators Unit 2025
Number of Suppliers Certified under Quality Management Systems / 296
Case Supplier Management Training
Number of Suppliers Certified under Environmental Management Systems / 174
On February 11 2025 Xindeco Optoelectronics conducted Number of Suppliers Certified under Occupational Health and Safety Management Systems / 102
specialized supplier management training for the
procurement team in the Supply Planning Department with Number of Suppliers Suspended due to Non-compliance / 0
a total of 8 procurement staff attending. This training
effectively improved the team’s supplier management skills
Number of Prospective Suppliers Rejected due to Non-compliance / 0
and job performance.Note: The key performance data covers Xindeco Digital Intelligence Technology(Shandong Xindeco IoT+Xindeco Intelligent
IoT) Xindeco Electronic Information Technology and Xindeco Supply Chain.
73 742025 Sustainability Report
Supply Chain Resilience Construction Case Xindeco at the Supply Chain Innovation Exhibition to Illustrate the Resilience of “Three-Chain Integration”
In September 2025 Xindeco made its fifth consecutive appearance at the National Supply Chain Innovation Exhibition. Under
Supplier Empowerment and Co-creation the theme of “Integration of Three Chains for Resilient Coexistence” the Company demonstrated its innovative practices in areas
such as global layout industry chain operations and digital transformation. Through resources allocation integrated solution
outputs and the implementation of intelligent systems Xindeco continued to empower upstream and downstream enterprises
The Company and its subsidiaries based on long-term stable cooperative relationships promptly address quality issues in the production and
deepen industry chain collaboration and contribute to the high-quality development of the supply chain.delivery process through measures such as quality meetings with suppliers. This strengthens suppliers’ awareness of quality responsibility and
promotes collaborative development and win-win cooperation between both parties.Case Ceiling Light Quality Issue Meeting
On March 28 2025 Xindeco Optoelectronics organized a quality issue meeting with relevant personnel and suppliers regarding
the ceiling light products received on March 27. The meeting addressed quality issues related to 54W (250 sets) and 108W (400
set) ceiling lights. After conducting sample inspections few quality defects were identified in this batch. In response to the
defects Xindeco Optoelectronics and the supplier established stringent corrective actions and ensured their implementation
further enhancing the supplier’s awareness of quality responsibility.Case Xindeco IoT at International Exhibitions
Xindeco IoT participated in a series of international industry
exhibitions including the International Internet of Things
Exhibition Asia International Label Printing Exhibition RFID
Journal LIVE! 2025 and Mexico International Label Printing
Exhibition. At these events the company showcased its
innovations and comprehensive capabilities in the IoT sector
significantly enhancing brand influence and fostering industrial
cooperation and market expansion. At the same time
leveraging Xindeco IoT Malaysia as a strategic base the
company expanded its reach to key accounts in Southeast
Asia securing significant orders marking a key breakthrough in
international market expansion.Industry Exchange Equal Treatment of Small and Medium-Sized Enterprises
The Company and its subsidiaries actively engage in industry exchanges within the supply chain sector. They are deeply involved in various
domestic and international industry conferences such as the Iron Ore International Market Seminar Supply Chain Innovation Exhibition China The Company strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China and the
International Supply Chain Promotion Expo and International Internet of Things Exhibition. These engagements effectively allow the Company Regulations on Ensuring Payments to Small and Medium-Sized Enterprises. It maintains fairness in dealings with small and medium-sized
to learn from advanced domestic and international operating concepts infusing new momentum into the creation of a high-quality and enterprises (SMEs) and ensures that cooperation conditions are open and transparent. Moreover the Company adheres to contractual
sustainable supply chain ecosystem. agreements standardizes payment procedures ensures compliance with payment regulations and fulfills its information disclosure
obligations thereby safeguarding the legitimate rights and interests of SMEs. In 2025 the Company did not experience any overdue
payments to SMEs. As of the end of the reporting period the Company had no accounts payable (including notes payable) exceeding RMB
30 billion or constituting more than 50% of total assets.
75 762025 Sustainability Report
04
Working Together to Create a
Better Future
Xindeco adheres to a people-oriented approach prioritizing employee rights protection occupational health and safety. The Company
continually improves labor protection compensation and benefits career development and care mechanisms and is committed to building a
safe healthy equal and inclusive workplace environment. The Company actively fulfills its social responsibility by organizing a wide range of
public welfare activities including educational assistance poverty alleviation and volunteer services. These initiatives contribute significantly to
the harmonious stability and long-term development of society.Our Actions SDGs Responded
Protection of employees’ rights and interests
Occupational health and safety
Community public welfare
77 782025 Sustainability Report
By Academic Qualification By Profession By Region
Protection of Employees’ Rights
1603
and Interests 30
467
3291357
1139
1318
Talent Attraction and Recruitment 875
3962
Talent is the core support for the Company’s high-quality development. The Company continually optimizes its talent attraction and 1378 967
recruitment mechanisms adhering to principles of fair employment and selective recruitment to build a dynamic workforce.Master’s degree and above Production Technical Chinese mainland
Recruitment Management Bachelor’s degree Sales Finance Hong Kong Macau Taiwan
Associate degree Administration Abroad
The Company strictly follows the Labor Law of the People’s Republic of China the Labor Contract Law of the People’s Republic of China
High school or belowand other relevant laws and regulations. It upholds the recruitment principle of “fixed positions and personnel job matching openrecruitment and selective hiring” and has established the Employee Recruitment Management Measures. The Human Resources
Department coordinates the recruitment process with departments assisting in candidate selection ensuring the recruitment management
The Company adheres to principles of openness fairness transparency and merit-based selection. It builds diversified recruitment channels
system is institutionalized standardized and efficient and continuously improving the Company’s talent selection and allocation
that combine online and offline approaches ensuring the standardized placement of veterans in municipal state-owned enterprises. The
mechanisms. Each department and business segment submits an annual staffing plan based on actual production and operational needs at
Company continually broadens its talent acquisition paths optimizes the recruitment process and guarantees that talent selection is
the end of each year. Recruitment channels are precisely selected according to the characteristics of the positions ensuring that talent is
conducted in a standardized efficient and scientifically accurate manner injecting continuous vitality into its high-quality and sustainable
introduced efficiently effectively matched and in a well-ordered and standardized manner.development. To further regulate personnel management and prevent conflicts of interest the Company strictly enforces a relative avoidance
system creating a fair just and clean environment for recruitment.Key In 2025 the Company achieved a 100% labor contract signing rate;
Perfor-
mance External Recruitment Internal Recruitment
As of the end of the reporting period the total number of employees was 3995 consisting of 118 ethnic
minority employees 44 veterans 4 disabled employees 15 labor dispatch employees and 0 part-time Recruitment websites such as BOSS Zhipin Beisen and Liepin; Internal transfers internal selections and internal
employees. the Company’s official website; talent exchange conferences; competitions.and campus recruitment.By Gender By Age By Job Level
Diversity Equality and Inclusivity
175
3 The Company places great emphasis on human rights protection strictly adhering to laws regulations and internationally recognized
human rights standards. Internal management systems such as the Labor and Personnel Management Regulations clearly define anti-
54
discrimination and anti-harassment requirements to ensure that employees have equal opportunities in recruitment salaries and
930
1499 993 promotions. The Company also prohibits the employment of child labor and forced labor committing to creating a fair inclusive and
harmonious working environment for all employees. In its business operations the Company irregularly conducts human rights risk
identification and assessments performing internal reviews around key areas such as recruitment employment and production operations
2496 ensuring that its business practices comply with legal regulations and social responsibility requirements. During the reporting period the
Company did not experience any incidents related to the employment of child labor forced labor workplace discrimination or harassment.
18973938
The Company ensures equal opportunities for employees in recruitment compensation promotion and other aspects strictly
prohibiting any form of discrimination based on gender age race color nationality ethnicity or place of origin.Female Male Under 30 Between 30-39 Senior management
The Company resolutely opposes the use of child labor forced labor and any form of sexual harassment.Between 40-49 50 and above Middle management
The Company upholds both gender equality and employee care focusing on the development of female employees and
Other employees employees with disabilities so as to create a work environment that is equal diverse inclusive and respectful.
79 802025 Sustainability Report
Training and Development Internal Trainer Management
The Company has developed the Internal Trainer Management Measures under which the Human Resources Department manages the
selection training certification and evaluation of internal trainers. Internal trainers‘ compensation is determined based on training hours
Focusing on employee growth the Company has established a comprehensive training and development system continuously empowering
course quality and teaching effectiveness. This approach fully motivates internal trainers to teach fosters the internal accumulation of
employees’ career development and achieving alignment between personal value and corporate growth.knowledge the transfer of experience and the replication of skills ensuring stable and high-quality faculty support for talent development. As
of the end of the reporting period the Company had a total of 53 internal trainers. They have developed 49 courses across three major
Employee Training training systems: business functional and general courses.To standardize training management and enhance employees’ professional skills and qualities the Company follows the principles of “targetedsystematic and proactive” and has developed the Training Management Measures. The Human Resources Department is responsible for
preparing and implementing training plans continuously improving the employee training and development system. The Company focuses on five
key modules: “Organizational Capability Enhancement” “Leadership Development” “Key Talent Cultivation” “Specialized Talent Cultivation” and
“Comprehensive Skill Enhancement for All Employees.” It continues to upgrade the “435 Xindeco Star” talent development system building an
inclusive learning and empowerment platform for all employees. Through layered and categorized training precise empowerment and skill
enhancement the Company constructs a comprehensive talent growth and development mechanism.The Company invites external lect-
urers or internal trainers to provide The Company also selects employees
courses including new employee to participate in training programs
training general training manage- organized by external institutions such
Internal ment training and professional tra- External as short-term specialized courses and
training ining. training professional qualification training.
2025 Organizational Development and Talent Cultivation Overview
Organizational Talent
Development Development
Internal Trainer Team Development
Talent Value Chain Talent Supply Chain Talent Empowerment Chain
Online Learning Platform
Leading Innovation
Stability Phase
Xindeco Xindeco The Company has established the “Talent Cloud Classroom” an online learning platform managed by the Human Resources Department. Xindeco
Diverse Choices and Stable Xindeco Empowerment Motivation
Core Values Star Plan Attraction The platform integrates high-quality learning resources to provide employees with a flexible and efficient online learning experience. Through Development Plan Plan Plan
First-Class Leadership diverse courses structured learning paths and digital learning management the platform supports the comprehensive enhancement and
Authentic Responsibility long-term development of employees’ capabilities.Striving for Excellence
Maturity Phase
Co-Creation and Sharing
Leadership Enhancement
Personnel Training and
Experience Transfer Talent Culture Talent Talent Cloud
Classroom Classroom Classroom
Organizational
Effectiveness Growth Phase
Talent Development and Selection
Development System Talent Pool Reserve and Key Star Star
Capability Development Talent Business Starlight StarseaTalent Recruitment System Spark Plan
Plan Plan Plan Plan
Talent Cultivation System
Performance Incentive
System Introduction Phase 435 Xindeco Star
Career Development System Onboarding Guidance New
Employee Training and On-the-Job 4: Talent Cultivation
Training 3: Capability Enhancement
5: Professional Support
Building Strong Organizational Capability and Strengthening Talent Support to Create a Leading
Engine for Quality Improvement
2025 Organizational Development and Talent Cultivation Overview Online Learning Platform
8182
Intelligence for New Horizons
Advancing with Core Strength2025 Sustainability Report
Case Xindeco Attraction Plan - Senior Management Training Career Development
To support the orderly development of employees’ careers and establish a career management system that aligns with the Company’s
In alignment with the “Advancing with Core Strength and Intelligence for New Horizons” strategic initiative the Company has
strategic goals the Company has formulated the Management Regulations on Employee Career Development which follows the principles of
launched the Xindeco Attraction Plan - Senior Management Training Program. This program continuously improves senior
“guidance balance step-by-step promotion flexibility in career progression and cultural orientation” with the Human Resources Department
management’s abilities in strategic transformation leading innovation intelligent thinking and breakthrough thinking as well as
overseeing employee promotion processes. The Company has created three primary career development paths: management professional
their comprehensive ability to open up new business areas and lead organizational change. It further drives the core digital
and general support staff tailored to different roles and value creation models. The criteria for each position’s qualifications and promotion
transformation and technology-driven change within the Company.mechanisms are clearly defined providing employees with a clear diverse and sustainable career growth path.The Company has also formulated the Management Measures for Employee's Role Rotation establishing an internal talent exchange
mechanism and rotation talent pool. This system promotes both horizontal job rotation across departments and investment enterprises as well
as vertical rotations to create broader career development platforms for employees. Through multi-role and multi-scenario practical
experience the Company fully taps into employees’ potential enhances their overall competence and business capabilities accelerates the
cultivation of versatile talents and provides strong talent support for its sustainable development.Remuneration and Benefits Management
The Company adheres to a people-oriented approach and has established a fair and reasonable compensation and benefits system that
aligns employee interests with company goals ensuring employees’ legitimate rights and reasonable returns while fostering mutual growth
and sharing of development benefits between employees and the Company.Case Star Business Plan - Series Specialized Training on AI
In March 2025 in response to the “Advancing with Core Strength and Intelligence for New Horizons” strategy and the Compensation Management
opportunity presented by the development of the artificial intelligence (AI) industry the Company organized the Star BusinessPlan series of training sessions. The training focused on three key topics: the operation of the “Trade Wise AI Office Assistant To establish a performance-oriented compensation distribution system and effectively motivate employees the Company has developed thethe characteristics of AI technology and the development trends in AI”. This helped employees master basic AI knowledge and Compensation Management Regulations. These regulations follow the principles of combining incentives competitiveness and balance to
application skills improving their digital awareness and practical capabilities. This training effectively strengthened employees’ build a scientifically sound fair and transparent compensation management system. The Company implements an annual salary system for
ability to use AI tools to solve business challenges laying the foundation for the Company’s digital transformation by developing senior management and a performance-based salary system for other positions tightly linking compensation with job value individual
digital and intelligent talent and continuously empowering business innovation and industrial upgrades. performance and company profitability. The Company regularly optimizes compensation based on market levels and economic performance
ensuring that the remuneration for key positions remains competitive in the market. This approach continuously invigorates employees and
drives mutual development between employees and the Company.Compensation Model Compensation Applicability
Annual salary system Applicable to senior executives at the headquarters of each business segment.Applicable to department heads deputy heads department assistants
Phase 2 Performance-based salary systemPhase3 Phase 4 professional employees and expatriates.Contract salary system Applicable to special talent recruited by the Company.Applicable to general support staff such as drivers and front desk staff for
Other compensation models which a special salary management system is established.Key Performance Unit Composition of performance-based salary system: Annual salary year-end double salary allowances and subsidies monetized benefits etc.Total Investment in Employee Training RMB 10000 84.24
Number of Employee Training Sessions Session 245 (1) Annual salary: fixed salary + variable salary;
Total Number of Employees Trained Person 3995 (2) Year-end double salary: 13-month salary with the 13th salary being the fixed salary;
Total Attendance Person-times 9122 (3) Allowances and subsidies: transport allowance professional title allowance etc;
Employee Training Coverage Rate % 100
(4) Monetized benefits: Summer heat allowances hygiene allowances for female employees.
Total Training Hours Hours 22539.60
Average Training Hours per Employee Hour/Person 5.64
83 842025 Sustainability Report
Employee Benefits Appeal and Feedback Mechanism
To enhance employees’ sense of belonging and cohesion the Company has established the Employee Benefits Management Measures The Company integrates performance communication throughout the entire performance management process. After assessments
ensuring the statutory contribution to social insurance (five insurances and one housing fund). The Company has also established a diversified feedback is promptly provided to employees and supervisors conduct performance discussions and improvement coaching. If employees
benefits system including enterprise annuities and supplementary medical insurance and provides lunch subsidies thereby creating a multi- disagree with the assessment results they can submit an Assessment Appeal Form within five working days. The Company’s human
layered and comprehensive employee care system that continuously improves employees’ sense of well-being and satisfaction. resources leader along with the chairman of the trade union leads a performance assessment appeal working group from relevant
departments. This group reviews investigates and evaluates the appeal forming a final decision and providing feedback to the employee
ensuring fairness and justice in the assessment process.Medical insurance pension insurance
Statutory unemployment insurance work injury Special Supplementary medical insurance
benefits insurance maternity insurance housing welfare enterprise annuities lunch subsidies.provident fund. Labor Relations Management
The Company adheres to legal compliance and a people-oriented approach actively fostering harmonious and stable labor relations to
create a mutually beneficial work environment.The Company has clearly implemented a five-day working week system in its Labor Discipline Management Regulations. At the same time
the Company strictly regulates overtime management ensuring that employees are granted compensatory time off for overtime work in
accordance with the law thus safeguarding employees’ rights to rest and vacations.Labor Dispute Management
The Company strictly follows the Measures for Trade Union’s Participation in Labor Dispute Handling to manage labor disputes. It
Key emphasizes legal compliance prioritizes mediation and fully leverages the union’s role as a bridge to facilitate negotiations mediation and
Perfor- During the reporting period the Company achieved 100%coverage for social insurance. review of labor disputes. The Company has established a diverse and efficient conflict resolution mechanism ensuring disputes that cannot
mance
be resolved internally are handled properly according to legal procedures. This ensures the protection of employees’ legal rights and
maintains harmonious and stable labor relations.Performance Management
Key
Perfor- During the reporting period the Company received 0employee complaints.The Company has established a fair transparent and value-oriented performance management system to stimulate employee potential and mance
organizational vitality driving both individual and organizational growth and sustainable development.Performance Evaluation Mechanism
Employee Exit Management
The Company follows the principles of “strategic leadership cultural guidance and objective fairness” and has formulated the Performance
Management Regulations implementing monthly semi-annual and annual performance evaluations. The Human Resources Department is The Company standardizes the resignation process in its Labor and Personnel Management Regulations. Employees must submit a written
responsible for setting annual performance targets while department leaders determine specific departmental performance indicators based resignation request 30 days in advance and complete the handover of work property and documents within the specified period. Once the
on their responsibilities and key tasks ensuring fair and effective performance evaluation. Monthly assessments are conducted by each employee’s personnel files and household registration transfer are completed the Company will issue a Certificate of Termination or
department independently semi-annual assessments focus on work performance metrics and annual assessments encompass work Dissolution of the Employment Contract in accordance with the law ensuring that the resignation process is standardized compliant and
achievements leadership evaluations department satisfaction surveys and additional points for major awards or honors. The assessment smooth.results are directly linked to variable salaries and serve as the basis for salary adjustments.Key
Perfor- During the reporting period the number of employee departures from the company's
mance
Key
Perfor- During the reporting period 3995 employees received regular performance and career headquarters was 8 representing a total employee turnover rate of 5.13%.mance
development assessments representing 100%of the workforce.
85 862025 Sustainability Report
Employee Care and Communication Key Performance Indicators Unit 2025
Number of Employee Congress meetings Times 3
The Company maintains a strong focus on employee well-being by improving communication mechanisms and establishing a diverse support
and protection system to safeguard employees’ welfare and create a warm and harmonious workplace atmosphere.Items reviewed and passed by the Employee Congress Item 7
Items reviewed and passed by the Trade Union Item 7
Employee Assistance
The Company places high importance on employee care and
assistance. It has developed the Management Measures for
Xindeco Employee Mutual Aid Center and established a special Protection of Women's Rights and Interests
mutual aid fund pool. The fund sourced from employee
contributions government and administrative subsidies trade
The Company places a high priority on safeguarding the rights and interests of female employees strictly adhering to the Law of the People’s
union support and social donations is managed by the Xindeco
Republic of China on the Protection of Rights and Interests of Women. It upholds the principles of gender equality and equal pay for equal
Employee Mutual Aid Center Management Committee and used
work ensuring that female employees have equal opportunities in recruitment compensation benefits training and promotion. The Company
for various mutual aid and care projects aimed at providing
also signs Special Protection Contract for Female Employees through equal negotiations to comprehensively protect the legal rights physical
targeted assistance and warm support to employees and their
and mental health of female employees. The Company ensures compliance with maternity leave prenatal examination leave breastfeeding
families in need. Additionally the Trade Union regularly organizes
leave and parental leave in accordance with the law and provides paternity leave for male employees during their spouse’s childbirth. The
heartwarming activities such as the “Cool Relief Campaign”
Company promotes flexible working arrangements organizes heartwarming activities on International Women’s Day and actively cultivates an
focusing on employees’ work and life needs and continuously
Cool Relief Campaign Organized by the Trade Union equal respectful inclusive and friendly workplace environment.conveying the Company’s care for its employees.Key
Perfor- In 2025 the Company provided a total of RMB 0.1072 million in financial assistance to 80
mance employees facing difficulties. The number of employees receiving support per million RMB
in revenue was0.0025per RMB 1 million.Democratic Management
The Company legally organizes employees to join the Trade Union Women’s Day Activities
holds employee representative meetings in an orderly manner and
ensures employees’ rights to information participation expression and
supervision thereby building a sound system for democratic
management. The Company respects and legally protects employees’ Key Performance Unit 2025
rights to collectively negotiate. It conducts equal negotiations on
employees’ vital interests such as compensation benefits Proportion of Female Managers % 31.58
performance career development and labor management and signs
documents like the Collective Contract and the Wage Collective Total Number of Employees Taking Parental Leave Person 112
Contract. Democratic management is deeply integrated into the
Company’s system and corporate culture effectively safeguarding Employee Congress Return Rate from Parental Leave % 100
employees’ legal rights.The Company utilizes multiple democratic communication channels such as the OA system employee meetings bulletin boards etc. to
regularly hold discussion sessions for new employees key staff face-to-face meetings with senior management and forums for outstanding
young leaders. These activities ensure smooth communication of employee concerns and create an open and inclusive communication
environment. The Company regularly conducts employee satisfaction surveys on corporate cultural activities through questionnaires to
comprehensively understand employee participation experiences and improvement suggestions. Based on this feedback the Company
continuously optimizes the planning and organization of activities effectively enhancing their appeal and fostering greater employee cohesion.
87 882025 Sustainability Report
Employee Activities Occupational Health and Safety
The Company strives to create a rich and diverse corporate cultural life by regularly organizing employee sports events outdoor hiking
themed debate competitions dragon boat races and other cultural and sports events. The Company also hosts special activities such as
parent-child events for Children’s Day cultural study tours and movie viewings. These activities enrich employees’ leisure time strengthen
team cohesion and foster a healthy progressive and harmonious corporate culture. Safety Production Management System
To strengthen safety production management effectively prevent and curb production safety accidents and ensure the safety of employees’lives and property the Company has established the Work Safety Management Measures. It adheres to the principle of “Safety FirstPrevention First and Comprehensive Management” and has set up a work safety leadership group to oversee safety operations. The team
has an office and designated safety management personnel responsible for day-to-day safety management continuously improving the work
safety management mechanism. During the reporting period the Company held 2 work safety leadership group meetings 4 safety regular
meetings and 2 special work meetings.Group Leader: Chairman
Safety Production Vice Leaders: Deputy Party Secretary/
Leadership Group General Manager Deputy Party
Secretary/Disciplinary Committee Secretary
Debate Competition Employee Sports Meet Dragon Boat Race
Members: Leaders from each business segment
Director: Deputy Party Secretary/Disciplinary
Committee Secretary
Administrative Deputy Director: Head of the Work Safety
Office Management Department
Members
Hiking Event Children’s Day Parent- Innovation Culture Tour of Xindeco
Child Event of Xindeco Supply Chain Electronic Information Technology Work Safety Management Framework Work Safety MeetingThe Company strictly implements the work requirements of “Party and government responsibility dual responsibility for each post jointmanagement and accountability for dereliction of duty” and “Three managements and three musts” establishing a comprehensive work safety
responsibility system for all employees. The Company’s main leader is the first person responsible for work safety. The Work Safety
Responsibility Statement is signed at all levels creating a linked collaborative management network for work safety. The Company regularly
conducts work safety assessments closely linking the achievement of work safety goals with awards job promotions and performance
compensation. It strictly enforces a “veto system” for work safety using rigid assessments to ensure that responsibilities are effectively
performed.As of the end of the reporting period Xindeco’s subsidiaries including Xindeco Optoelectronics Xindeco IoT and Xindeco Intelligent IoT have
all obtained ISO 45001 Occupational Health and Safety Management System certification. Additionally Fujian Xindeco Optoelectronics has
received the Safety Production Standardization Certificate.“Integration for Development and Innovation for “Striving Together for Xindeco and Innovating forCollective Progress” Corporate Culture Shared Success” Corporate Culture Event
Event of Xindeco Digital Intelligence of Xindeco Electronic Information Technology Occupational Health Occupational Health and Safety Production Occupational Health and Safety
and Safety Management Safety Management System Standardization Certificate Management System Certification
System Certification of Certification of Xindeco IoT of Fujian Xindeco of Xindeco Intelligent IoT
Xindeco Optoelectronics Optoelectronics
89 902025 Sustainability Report
Reward Regulations for Work Safety Accidents Hazard encouraging employees to actively participate in safety management
2025 Occupational Health and Safety Management Goals Achievement conduct hazard checks and foster a strong culture of collective prevention and management.
Signing rate for work safety responsibility agreements: 100%
Completion rate for annual performance assessments and reward/penalty implementation: 100%
Timely resolution rate for incidents: 100%
Full implementation of national and local regulations on work safety and fire safety
Major and catastrophic accidents: 0
Fatalities in general accidents: 0 Achieved
Incidents with direct economic losses exceeding RMB 1 million: 0
A comprehensive occupational health and occupational disease prevention management
system in place with no occupational diseases reported Safety Inspection
Key
Perfor- During the reporting period the Company identified and rectified494general safety hazards
mance
Key including297 fire safety hazards 37hazardous chemical hazards and 160other types of
Perfor-
mance During the reporting period the Company allocated RMB 0.7809 million to work safety. hazards with a 100%hazard identification and rectification rate.Emergency Response
Work Safety Risk Management To effectively address work safety emergencies the Company has developed the Emergency Response Plan for Work Safety
Accidents which specifies tiered responses based on the severity of production accidents. The Company has also improvedTo standardize work safety risk management the Company adheres to the principles of “full participation focusing on key issues and emergency response rescue support and post-incident mechanisms to enhance the capacity for handling emergencies. Thehierarchical management”. It has established the Safety Risk Identification Assessment and Hierarchical Management Regulations which Company has established specialized emergency response plans for incidents such as earthquakes typhoons during the rainy
include regular identification and assessment of hazards implementing tiered control and closed-loop management to prevent safety risks at season fires and chemical spills significantly enhancing its capabilities in disaster prevention mitigation and emergency
the source. support. In addition the Company regularly conducts various emergency education and training sessions along with emergency
drills to comprehensively enhance employees’ safety awareness and self-rescue and mutual assistance capabilities.The Company identifies hazards in elements such as personnel materials environment and
Risk Identification management deficiencies focusing on production systems facilities work environments and
operational activities.The Company employs methods such as LEC evaluation and risk matrix for risk assessment of
Risk Assessment hazards determining risk levels and establishing a safety risk database and a list of major safety Case 2025 “Work Safety Month” Fire Drill
risks.Based on the type and level of safety risks targeted control measures are developed and
Risk Management On June 20 2025 the Company conducted a fire emergency implemented. The Company tracks the implementation of these measures and ensures timely
and Control drill at the Xindeco Information Industry Park. The drill simulated
corrective actions when issues are identified.a fire alarm scenario with each team working together to
complete firefighting and personnel evacuation tasks. After the
drill the Company invited professionals to provide practical fire
safety training further enhancing employees’ emergency
Safety Hazard Identification response and self-protection abilities.The Company has formulated the Management Regulations for Safety Hazard Identification and Mitigation and established a
regular hazard identification and rectification mechanism. Production enterprises are required to conduct daily checks on each
production step and position strictly enforcing safety responsibilities and effectively preventing accidents. The Company focuses
on key areas such as construction sites fire safety and electrical safety advancing the full-chain management of high-risk
industries including hot work in crowded areas and hazardous chemicals.For safety hazards identified through inspections the Company promptly issues rectification notices ensuring compliance with the Key
“Six Definitions and Five Prohibitions” requirements and organizes special inspections to ensure the closure of the hazard Perfor-
During the reporting period the Company held29fire safety training sessions and emergency drills
mance
management loop. Additionally the Company has established an incentive mechanism based on the Internal Reporting and with a total of 755 participants.
91 922025 Sustainability Report
Safety Accident Management
Construction of Safety Culture
The Company takes a thorough approach to managing work safety accidents. After emergency rescues are completed a post-incident review
is conducted to analyze lessons learned identify gaps develop corrective measures and create a summary report of the emergency The Company has designated the Work Safety Leadership Group to organize ongoing safety education and training with an annual training
response. This ongoing process helps enhance the Company’s emergency management capabilities. At the same time the Company plan in place. Specialized safety training sessions are conducted during initiatives such as “Work Safety Month” and “Fire Safety Awarenessrecognizes and rewards units and individuals who perform exceptionally well in emergency rescues. It holds responsible parties accountable Month.” Additionally safety knowledge is disseminated through multiple channels including the OA system WeChat official accounts LED
for any failure to fulfill their duties with severe consequences for those suspected of illegal activities including referral to judicial authorities for screens and bulletin boards ensuring that safety awareness becomes ingrained in employees’ minds and hearts.legal processing. The Company’s strict reward and penalty system strengthens the work safety responsibility framework ensuring smooth and
orderly operations.Key
Perfor- During the reporting period the Company recorded 0 work safety accidents
mance
0 work-related fatalities 0 work injuries and 0 lost working hours due to work injuries.
Digital Safety Management
The Company actively digitalizes its safety management piloting the use of the Yijian Platform to accelerate the development of a digital
Work Safety Training Traffic Safety Knowledge and Safe Driving Training
safety management platform. This platform leverages information technology to enhance safety control. Additionally the Company has
implemented technological upgrades for key equipment installing sensors and deploying intelligent safety monitoring systems to collect real-
time operational data such as temperature pressure and vibration. Through data analysis the Company can accurately predict equipment
failures and safety hazards transitioning from a reactive approach to safety management to one focused on proactive prevention thereby
continuously improving intrinsic safety levels.“Fire Safety Awareness Month” Training Confined Space Fire Safety and Electrical Safety Training
Key Performance Unit 2025
Total Investment in Safety Training RMB 10000 10.55
Safety Education and Training Sessions Cases 56
Yijian Platform Number of Participants in Safety Education and Training Sessions Person-times 2042
Number of Participants in Safety Education and Training Person 1537
Total Hours of Safety Education and Training Hours 3880
Average Hours of Safety Education and Training per Employee Hour/Person 0.97
93 942025 Sustainability Report
Safety Management for Related Parties Management of Hazardous Chemicals
The Company and its subsidiaries place high importance on related parties safety management. Xindeco Optoelectronics has developed the The Company and its subsidiaries strictly adhere to the safety management regulations for hazardous chemicals. Xindeco IoT has
Related Parties Safety Management System which designates the General Management Department to be responsible for the safety established the Hazardous Materials Management System which clearly defines the management responsibilities of each department. The
management of related-party operations on-site. The system enforces strict access review safety briefing process supervision and system regulates the procurement storage distribution use and disposal of hazardous chemicals ensuring the entire process is safely
performance evaluation creating a closed-loop management mechanism for the entire process. controlled and properly managed.The Company ensures that suppliers possess the appropriate production or business
Prequalification The Company collects background information on related parties assessing their business qualifications. For special categories suppliers are required to report to the public security
and Selection qualifications past performance and safety credentials to build a qualified directory. Procurement management system in accordance with relevant regulations and follow the proper purchasing
procedures.When signing service contracts with related parties the Company also signs safety Hazardous chemicals are classified stored in designated areas and managed by dedicated
Safety Agreement agreements clearly defining both parties’ responsibilities and obligations regarding work personnel. The storage areas must meet relevant fire safety requirements and leakage and Storage
Signing safety and occupational disease prevention and requiring related parties to comply with the seepage prevention measures must be implemented with appropriate hazard warning signs
Company’s safety management regulations. displayed.Leakage prevention measures are implemented during the distribution process. During use
Distribution
The Company provides safety education and training for workers covering the hazards employees are trained to handle chemicals carefully to avoid spills and regular safety training
and Use
risks and control measures associated with their tasks as well as safe operation procedures is provided to users along with relevant protection against occupational diseases.Work Safety for related equipment.Management
Regular on-site inspections are conducted to oversee and ensure the implementation of
safety measures. Any violations or non-compliance are addressed immediately with a work
stoppage and corrective action. The disposal of waste chemical containers is managed by the General Management
Disposal Department and entrusted to qualified suppliers for proper handling.Performance Each year the Company evaluates the service completion status safety management
Evaluation and performance service quality business reputation and after-sales service of related parties.Renewal Based on the evaluation results the Company decides whether to continue the partnership.Occupational Health Protection
The Company strictly follows the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases having
established a comprehensive occupational health management system and actively takes preventive measures to reduce the risk of
occupational diseases. Subsidiary manufacturers regularly conduct health risk assessments in the workplace. For specific risks control
measures are implemented such as improving work processes placing warning signs and providing personal protective equipment. The
Company also strengthens occupational health awareness and training to comprehensively protect employee’ occupational health rights.Key
Perfor- During the reporting period the certification rate for special operation personnel was 100%
mance
the investment in work injury insurance was RMB 0.7860 millonand the coverage rate for work
injury insurance was100%. There were 0 additional cases of occupational diseases
Training for Related Parties
and the occupational disease incidence rate was 0%.
95 962025 Sustainability Report
Community Public Welfare Case Acts of Kindness Warm the Elderly with Material Support
On January 22 2025 the general Party branch of Xindeco ITG Automobile Group donated 200 kilograms of ecological rice to the
charity canteen in the Jiafu community providing material support for the community’s elderly care services. This rice donation
Contribution to Society was part of the “One Branch One Acre of Land” initiative by Xindeco ITG Automobile Group which not only supports the
community’s efforts to care for the elderly but also contributes to rural revitalization demonstrating a commitment to both rural
The Company consistently upholds the volunteer service philosophy of “dedication friendship mutual assistance and progress” engaging in development and public welfare.a wide range of community volunteer services including support for children’s welfare elderly care during the Chongyang Festival voluntary
tree planting and other charitable activities. Xindeco ITG Automobile Group leveraging its industry expertise provides professional automobile
consulting and convenient services to local residents advocates for civil driving and green travel and has conducted a community outreach
program for children in urban villages for five consecutive years. Additionally Xindeco Electronic Information Technology has taken on the
“Glimmer” community project supporting children’s picture book reading and fitness activities in public spaces demonstrating corporate social
responsibility through action and contributing to social harmony.Case “Automobile Services Delivered to Your Door” Themed Volunteer Service Activity
On December 2 2025 the general Party branch of Xindeco ITG Automobile Group in collaboration with the Beizhan Community
“Glimmer” Community Project: Children’s “Clean Home Volunteers First for Clean Home” organized the “Automobile Services Delivered to Your Door” themed volunteer service activity. Leveraging its business
Picture Book Reading Themed Practice during the Lei Feng Month
advantages the company provided residents with one-stop consultation services such as vehicle annual inspections insurance
renewals and vehicle exchange evaluations while also promoting safe driving practices. This activity has been held for three
consecutive years and through the “Party Building + Co-development + Volunteer Service” model Xindeco ITG Automobile
Group has strengthened the connection between the company the community and its residents.“Sand Art Candles for a Brighter Childhood” Volunteer Themed Activity: Green Planting
Themed Sand Painting and Candle for a Civilized Community
Making Charity Event
97 982025 Sustainability Report
Case Beautifying the Environment for Urban Civilization Case Tripartite Joint Meeting to Boost Targeted Assistance
On August 12 2025 to support the creation of a civilized city Xindeco Supply Chain organized party members and On April 17 2025 the Company’s leadership led a visit to Jinbing Village in Xiang’an District for a joint meeting with the
volunteers to enter the Gaolin Community to carry out the “Clean Home for Co-creating Civilization” community practice. Municipal Maternal and Child Health Care Hospital and Xinxu Town to discuss the annual support projects for Jinbing
Volunteers conducted a thorough cleanup of the North District of Gaolin New City removing trash posters debris and dead Village. This collaboration aims to strengthen the collective economy of the village and pave the way for its sustainable
branches while addressing safety hazards. This initiative improved the community environment and fostered a positive development.atmosphere of “nurturing the flowers of civilization and enhancing its beauty”.Key
Perfor- During the reporting period the Company had 285participant attendances
mance Key During the reporting period the Company invested RMB 0.8151million in rural revitalization
contributing570hours of volunteer work. Perfor-
mance benefiting 176people.Note: The key performance data includes the Company's headquarters and its subsidiaries Xindeco Digital Intelligence
Rural Revitalization Technology and Xindeco Electronic Information Technology.The Company continues to deepen its rural revitalization efforts and has established a partnership with Jinbing Village in Xiang’an
District Xiamen. Through field research and discussions the Company has planned supporting initiatives including the purchase of
RMB 431800 worth of the village’s specialty agricultural products throughout the year helping to boost the development of the village’s Response to National Initiatives
collective economy. Additionally the Company actively participated in activities such as the “One Branch One Acre of Land” and
“Consumption Support” initiatives in Jianning County purchasing RMB 57700 worth of agricultural products including yellow peaches
Xindeco actively responds to the national “Belt and Road” initiative. Its subsidiary Xindeco ITG Automobile Group has made significant
and rice. With respect to educational support for 26 consecutive years the Company has organized the “Hand-in-Hand” educational
inroads into markets along the Belt and Road steadily expanding international trade and economic cooperation. In 2025 Xindeco ITG
assistance program for the Bayi Hope Primary School in Changting Longyan. This year the Company donated RMB 35100 and
Automobile Group collaborated with multiple countries including the UAE Uzbekistan Kazakhstan Kyrgyzstan and Cambodia signing
provided one-on-one support to 58 students benefiting a total of 1368 students over the years. This initiative has firmly established a
contracts for a total of 12319 vehicles with a contract value of USD 210 million. At the same time Xindeco ITG Automobile Group
foundation for education within the rural revitalization effort.continued to enhance its overseas warehouse network by adding new warehouses in Poland Spain Nigeria Cambodia and Azerbaijan
Xindeco ITG Automobile Group is committed to advancing rural revitalization and its Haicang Store responded to the rural revitalization to further strengthen cross-border logistics support. This pragmatic cooperation contributes to the trade and economic connectivity of
strategy by organizing a series of themed activities to support farmers. The store staff visited rural areas in Xiang’an purchased high- the “Belt and Road” initiative.quality local cabbage and distributed it as a store benefit to customers achieving both agricultural support and community welfare
goals.
99 1002025 Sustainability Report
Appendix
Social Performance
Key Performance
Indicator Unit 2025
Environmental Performance Employee Recruitment and Employment
Total number of employees Person 3995
Indicator Unit 2025 Minority employees Person 118
Environmental investment RMB 10000 159.35 Veterans Person 44
Environmental Environmental incidents Case 0 Disabled employees Person 4
Management Environmental and regulatory violations Case 0 Labor dispatch employees Person 15
Number of environmental training sessions Times 49 Part-time Person 0
Total GHG emissions tCO?e 15812.69 Percentage of contract workers % 100
GHG emission intensity tCO?e / RMB 1 million 0.49 By gender
Response to
Direct GHG emissions (Scope 1) tCO?e 313.75 Female Person 1499
Climate Change
Indirect GHG emissions (Scope 2) tCO?e 15498.94 Male Person 2496
GHG Emission Reductions tCO?e 1443.53 By age
Total waste gas emissions Tons 0.03 Under 30 (exclusive) Person 930
Wastewater discharges Tons 57935.9 Between 30 (inclusive) and 40 (exclusive) Person 1897
Wastewater treatment volume Tons 57935.9 Labor Between 40 (inclusive) and 50 (exclusive) Person 993
Rights
Pollutant Wastewater discharge intensity Tons/RMB 1 million 1.79 50 and above Person 175
Emissions Quantity of general waste generated Tons 13.20 By region
Quantity of general waste disposed of Tons 13.20 Chinese Mainland Person 3962
Quantity of hazardous waste generated Tons 662 Hong Kong Macau and Taiwan Person 3
Quantity of hazardous waste properly disposed of Tons 662 Overseas Person 30
Total purchased electricity kWh 29210213.70 By academic qualification
PV generation consumption kWh 1758259.40 Master’s degree and above Person 160
Energy Total energy consumption tce 3957.62 Bachelor’s degree Person 1318
Utilization Energy consumption intensity tce/RMB 1 million 0.12 Associate degree Person 1378
Renewable energy consumption tce 216.09 High school or below Person 1139
Proportion of renewable energy consumption 5.46 Diversity and Equal Opportunity
Total freshwater consumption Tons 75527.76 Number of incidents involving the use of child labor case 0
Water Resource
Total water consumption Tons 75527.76 Number of forced labor incidents case 0
Utilization
Water consumption intensity Tons/RMB 1 million 2.33 Number of labor discrimination incidents case 0
101 1022025 Sustainability Report
Indicator Unit 2025 Indicator Unit 2025
Protection of Female Employees’ Rights and Interests Safety Education and Training
Number of female managers Person 18 Total investment in safety training RMB 10000 10.55
Proportion of female managers % 31.58 Safety education and training sessions Cases 56
Total number of employees taking parental leave Person 112 Number of participants in safety education and training sessions Person-times 2042
Return rate from parental leave % 100 Number of participants in safety education and training Person 1537
Benefits and Compensation Total hours of safety education and training Hours 3880
Labor
Social insurance coverage rate % 100 Average hours of safety education and training per employee Hour/Person 0.97
Rights
Percentage of employees underwent regular Occupational Health
%100
performance and career development assessments
Percentage of special operators licensed % 100
Employee Democratic Governance Investment in work-related injury insurance RMB 10000 78.60
Number of Employee Congress meetings held Times 3 Coverage rate of work-related injury insurance for employees % 100
Items reviewed and passed by the Employee Congress Item 7 Number of new cases of new occupational diseases case 0
Items reviewed and passed by the Trade Union Item 7 Investment in R&D RMB 10000 3883.13
Employee Training Percentage of R&D investment in operating income % 0.12
Total investment in employee training RMB 10000 84.24 R&D Team
Number of employee training sessions Session 245 Total R&D team members Person 124
Total number of employees trained Person 3995 Proportion of R&D personnel to total employees % 3.10
Total attendance Person-times 9122 By academic qualification
Employee training coverage rate % 100 Bachelor’s degree Person 66
Employee Total training hours Hours 22539.60 Master’s degree Person 5
Training Average training hours per employee Hour/Person 5.64 Doctoral degree Person 2
& Development
Average training duration (by gender) Others Person 51
Female Hour/Person 6.00 By age
R&D
Male Hour/Person 5.43 Under 30 years old Person 35
Innovation
Employee Development 30-50 years old Person 85
Proportion of positions filled through internal transfers or internal recruitment % 20.50 Over 50 Person 4
Proportion of internal transfers or internal recruitment to total employees % 4.76 Innovation Achievements
Work Safety Total number of authorized patents Item 255
Number of work safety accidents Case 0 Patents by type
Number of work-related deaths Person 0 Cumulative number of authorized invention patents Item 32
Occupational Total number of work-related injuries Person 0
Cumulative number of authorized utility model patents Item 157
Health Working hours lost due to work-related injuries Hours 0 Cumulative number of granted design patents Item 66
and Safety
Hazard identification and rectification rate % 100 Number of valid patents per RMB 1 million in revenue Items / RMB 1 million 0.0079
Number of security emergency drills Session 29 Annual number of valid patent authorizations Item 38
Investment in work safety RMB 10000 78.09
103 1042025 Sustainability Report
Indicator Unit 2025 Governance Performance
Patents by type
Cumulative number of authorized invention patents Item 10 Indicator Unit 2025
Cumulative number of authorized utility model patents Item 19 Total assets RMB 10000 1445370.22
Cumulative number of granted design patents Item 9 Operating income RMB 10000 3237779.76
Operating
Annual number of patent applications Item 30 Net profit attributable to listed company shareholders RMB 10000 1524.22
Performance
Other intellectual property
R&D Total taxes RMB 10000 20718.52
Innovation Cumulative number of software copyrights Item 146 Meeting of Shareholders
Total number of trademarks Item 2
Meetings of shareholders convened Times 5
Number of software copyrights per million yuan in revenue Items / RMB 1 million 0.0045
Proposals approved Item 43
Enterprise Innovation Capability Certification
Corporate Board of Directors
National high-tech enterprise Unit 4 Governance
Meetings of the Board of Directors convened Times 17
Specialized and sophisticated enterprise that produces novel and unique products Unit 3
Attendance rate of members of Board of Directors % 100
Product Quality and Safety
Proposals approved Item 92
Product percent of pass % 98.50
Investor Relations Total Number of Investor Inquiries on
Number of internal quality audits annually Times 3 Times 109Shenzhen Stock Exchange Interactive Easy
Management
Number of third-party inspections conducted Times 9 Investor query response rate % 97.25
Number of quality training sessions Times 12 Number of anti-corruption training sessions Times 19
Products Business Ethics
Number of participants in quality training Person-times 291 Total number of participants in anti-bribery
and Person 1313
and anti-corruption training
Total hours of quality training
Services Hours 210
Protection of Customers’ Rights and Interests
Customer complaints case 58
Customer complaint resolution rate % 93.10
Pass rate of customer complaint response assessments % 100
Number of customers participating in customer satisfaction surveys Person 26530
Total number of suppliers Unit 1603
Supplier
Percentage of local suppliers % 41.55
Management
Localized procurement expenditure ratio % 10.97
Data Security
and Number of data security training sessions Times 2
Customer
Privacy
Protection Number of participants in data security training Person 44
Number of participants in volunteer activities Person-times 285
Community
Volunteer activity duration Hours 570
Public Welfare
Investment in rural revitalization RMB 10000 81.51
105 1062025 Sustainability Report
Indexes Index Table of Indicators in the Reference Indicator System for ESG Special Reports of Central SOE-Controlled Listed Companies and the GRI Sustainability Reporting Standards (GRI Stand-
ards)(2021 Edition)
Reference Indicator System
Index Table of Topics Covered in the Self-Regulatory Guidelines No. 17 for Companies Listed GRI Sustainability Reporting for ESG Special Reports of
Chapters and Sections Standards (GRI Standards)
on Shenzhen Stock Exchange—Sustainability Report (Trial) Central SOE-Controlled
Listed Companies (2021 Edition)
About the Report / 2-2/2-3/2-4
Dimension S/N Topics Corresponding Section
Message from the Chairman / 2-2
1 Response to Climate Change Environmental Protection for Sustainable Growth
Sustainable Development G.1.2.2/E.1.3.2/E.1.3.5/E.3.1.6/S.1.3.2/ 2-18/201-1/302-1/302-3/305-1/
2 Pollutant Emissions Environmental Protection for Sustainable Growth Highlights in 2025 S.1.3.3/S.1.4.2/S.2.3.2/S.4.3.2 305-2/305-4/403-5/404-1/415-1
3 Waste Disposal Environmental Protection for Sustainable Growth About Xindeco G.1.2.1 2-1/2-6
Sustainable Development Governance
/ (The Company’s production and operation G.1.1.1/G.1.1.2/G.1.3.3/G.5.2.1 2-9/2-13/2-29/3-1/3-2/3-3
4 Ecosystem and Biodiversity Protection activities have minimal impact
Environment on the ecosystem and biodiversity.) Party Building G.1.1.4/G.2.2.2 205-2
G.1.2.1/G.1.2.2/G.1.2.3/G.1.3.1/G.1.3.3/
5 Environmental Compliance Management Environmental Protection for Sustainable Growth Corporate Governance G.3.2.1/G.3.2.2/G.3.2.3 2-9/2-10/2-14/2-18/2-19/2-27Guidance
6 Energy Utilization Environmental Protection for Sustainable Growth by Party
Leadership Compliance Operation and G.2.1.1/G.2.1.2/G.5.1.1/G.5.1.2/G.5.1.3/
and Risk Management G.5.2.1/G.5.2.2/G.5.2.3/S.4.1.1 2-15/2-25/2-27/207-1/207-27 Water Resource Utilization Environmental Protection for Sustainable Growth
Strengthened
8 Circular Economy Environmental Protection for Sustainable Growth Governance Investor Relations Management
Foundation and Shareholders’ G.3.1.1/G.3.1.2/G.3.3.1/G.3.3.2/G.4.1.1 2-16/2-25/2-26/201-1/201-3
9 Rural Revitalization Working Together to Create a Better Future Rights and Interests
10 Contribution to Society Working Together to Create a Better Future Business Ethics G.2.2.1/G.2.2.2/G.2.3.1/G.2.3.2 2-26/205-1/205-2/205-3/206-1
Innovation-Driven and Quality-Oriented
Innovation-driven Development Response to Climate Change
E.3.1.1/E.3.1.2/E.3.1.3/E.3.1.4/E.3.1.6/
11 Approach for Long-Term Success E.3.2.1/E.3.4.1 201-2/305-1/305-2/305-4
Environmental Compliance
Innovation-Driven and Quality-Oriented
12 Technology Ethics Management
E.5.4.6/E.5.5.1/E.5.6.1/E.5.6.2 307-1
Approach for Long-Term Success
Environ
-mental E.2.1.1/E.2.1.2/E.2.1.3/E.2.2.1/E.2.2.2/ 305-7/306-1/306-2/306-3/Social Innovation-Driven and Quality-Oriented
13 Supply Chain Security Pollutant EmissionsApproach for Long-Term Success Protection for E.2.3.1/E.2.3.2/E.2.3.3/E.2.3.4/E.2.3.5 306-4/306-5
Sustainable
Equal Treatment of Small and Medium Innovation-Driven and Quality-Oriented Growth E.1.1.1/E.1.1.2/E.1.1.3/E.1.1.4/E.1.3.1/E.1.3.2/ 301-1/301-2/301-3/302-1/302-2/
14
-Sized Enterprises Approach for Long-Term Success Resource Utilization E.1.3.4/E.1.3.5/E.1.4.1/E.1.4.2/E.5.2.1/ 302-3/302-4/302-5/303-1/
E.5.2.2/E.5.2.3 303-2/303-3/303-4/303-5
Innovation-Driven and Quality-Oriented
15 Product and Service Safety and Quality Approach for Long-Term Success Implementation of
Green Operation E.5.4.4/E.5.4.5 /
Data Security and Customer Innovation-Driven and Quality-Oriented
16 Approach for Long-Term Success Innovation-driven DevelopmentPrivacy Protection S.2.3.1/S.2.3.2/S.2.3.3/S.2.3.4 /Innovation-
Driven and
Employees Working Together to Create a Better Future Product and Service 17 S.2.1.1/S.2.1.2/S.2.1.3/S.2.1.4/S.2.2.1/Quality- Safety and Quality S.2.2.2 416-1/416-2/417-1/417-2/417-3
Oriented
18 Due Diligence Sustainable Development Governance Approach Data Security and Customer
Sustainable for Long- Privacy Protection
S.2.2.3 418-1
19 Communications with Stakeholders Sustainable Development Governance
Development Term Success Supply Chain Management E.5.4.5/S.3.1.1/S.3.1.2/S.3.2.1/S.3.2.2 204-1/308-1/308-2/414-1/414-2
Related Guidance by Party Leadership and20 Anti-Commercial Bribery and Anti-Corruption Strengthened Governance Foundation S.1.1.1/S.1.1.2/S.1.1.3/S.1.2.1/S.1.2.2/ 401-1/401-2/401-3/402-1/403-9/
Governance Protection of Employees’
S.1.2.3/S.1.2.4/S.1.3.4/S.1.4.1/S.1.4.2/ 404-1/404-3/405-1/405-2/
Guidance by Party Leadership and Working Rights and Interests
21 Anti-Unfair Competition Together S.1.4.3/S.1.5.1/S.1.5.2/S.1.5.3 406-1/407-1/408-1/409-1Strengthened Governance Foundation
to Create
a Better Occupational health and safety S.1.3.1/S.1.3.2/S.1.3.3 403-1/403-2/403-3/403-4/403-5/Topics Disclosed Guidance by Party Leadership and
22 Risk and Compliance Management Future 403-6/403-7/403-8/403-9/403-10
on Own Initiative Strengthened Governance Foundation Community public welfare S.4.3.1/S.4.3.2/S.4.4.2/S.4.4.3 413-1/413-2/415-1
Key Performance / /
Appendix
Indexes / /
107108
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