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华工科技:2025年度环境、社会和治理ESG报告(英文)

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HGTECH COMPANY LIMITED

2025 Environmental Social and Governance ESG Report03

Notes on the Preparation of the Report

Scope of

the Report This report is the fourth environmental social and governance (ESG) report

publicly released by HGTECH COMPANY LIMITED. (hereinafter referred to as

"HGTECH" "the Company" or "we") to the public covering HGTECH and its major

holding subsidiaries. Unless otherwise specified the scope is consistent with the

consolidated financial statements of HGTECH's annual report (Stock Code:

000988.SZ).

Time scope

This report is an annual report covering the period from January 1 2025 to

December 31 2025. To enhance the completeness of the report some text

extends beyond this scope.ii

HGTECH COMPANY LIMITED

Preparation

2025 Environmental Social and Governance ESG Report Basis This report is prepared in accordance with the "Shenzhen Stock Exchange Listed

Companies Self-regulatory Guidelines No. 1 - Standardized Operation of Main

Board Listed Companies (2025 Revision)" issued by the Shenzhen Stock Exchange.It also references the "Shenzhen Stock Exchange Listed Companies Self-regulatory

Guidelines No. 17 - Sustainable Development Report (Trial)" "Shenzhen Stock

Exchange Listed Companies Self-regulatory Guidelines No. 3 - Preparation of

Sustainable Development Report (2026 Revision)" T/CERDS2-2022 "Enterprise

ESG Disclosure Guidelines" and the GRI General Standards. The Chinese version of

this report shall prevail.Data

description The data and cases presented in this report are sourced from the actual operational

records or financial reports of HGTECH and its major holding subsidiaries.Contact Information

Office of the Board of Directors of HGTECH

Tel: 027-87180126

Fax: 027-87180139

E-mail: 0988@hgtech.com.cn.You can get more information about

HGTECH. through the company’ s official

website (https://www.hgtech.com.cn)

and J uchao I n f o rma t i o n Ne two r k

(http://www.cninfo.com.cn)

*In case of any inconsistency between the Chinese and English versions the Chinese version shall prevailE N V I R O N M E N T A L | S O C I A L | G O V E R N A N C E

目录

Chairman’s Address 07

We and Governance

About HGTECH

Corporate Governance Structure 29

Company Profile 09 Internal Control Construction and Risk Management 31

Corporate Culture Philosophy 10 We and Innovation Information Disclosure and Standardized Operations 31

Identification of Important Issues 10 Investor Relations Management 32

Overview of ESG Management 11 Hgtech Central Research Institute: 16 Shareholder ReturnsSource of Innovation 33

Deeply Integrating into the Stakeholder Communication 34

"Artificial Intelligence" Wave 18

Compliance Management System Development 35

Collaborative Innovation for Industry-

University-Research-Application 24 Data Security and Clients Information Protection 35

Development

Anti-Bribery and Anti-Corruption 37

"Management Innovation" for Product Anti-Unfair Competition

Quality Enhancement 26 37

Safeguarding the "Golden Reputation"

of Intellectual Property 27

We and Partners

Supply Chain Security 39

Supporting the High-Quality Development

of Small and Medium-Sized Enterprises 40

We and the Environment

Protect Clients’ Rights and Interests 41 We Our Employees

Environmental Management System 45 and Social Responsibility

Addressing Climate Change 46 Employee Rights and Benefits 58

Environmental Protection Investment 52 Employee Development and Training 60

Waste Disposal 52 Employee Promotion and Incentives 62

Rational Utilization of Resources 54 Occupational Health and Safety 63

Environmental Protection Measures

at Overseas Bases 56 Fulfilling Social Responsibility 65

Key Performance Indicator Table 67 Benchmarking Index Table 70 Feedback Form 71HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 07

Chairman’s Fostering New Quality Productive Forces internal control and risk management mechanisms thus guar-

through Technological Innovation anteeing a scientific and effective corporate governance

structure. We have built a multi-layered risk prevention andAddress HGTECH continues to intensify its independent research and control network against commercial bribery and corruption development efforts firmly adhering to the goals of “global achieving full coverage of supply chain integrity commitments.debut industry leadership and specialization refinement Our information disclosure has received the highest “A” ratingdifferentiation and innovation.” We advance innovation from the Shenzhen Stock Exchange for ten consecutive yearsthrough a dual-driver model that combines “organized innova- earning widespread market recognition for our corporatetion” with “exploratory innovation.” Committed to collaborative governance standards. Furthermore the Company has consis-

innovation among industry academia research and applica- tently distributed cash dividends to investors for many years

tion and to integrated innovation within our industrial ecosys- with the payout ratio gradually increasing as a testament to our

tem we have established a vertically structured R&D frame- commitment to rewarding our investors.work consisting of two tiers (Central Research Institute and

core subsidiaries) across four echelons enabling centralized

management of the Group’s innovation resources. We further Laying the Foundation for Sustainable Devel-

deepen initiatives such as the “PhD 500 Plan” the “Hunter opment with Green MomentumPlan” and “company-wide talent scouting” attracting excep-

tional talent from around the globe and harnessing the Guided by the “dual carbon” goals HGTECH focuses on green

strength of outstanding young professionals thereby continu- technology and intelligent manufacturing. We are actively

ously invigorating our technological innovation capabilities. In promoting the construction of green factories strategically

alignment with national strategies HGTECH fully embraces expanding into clean energy and increasing investments in

artificial intelligence deeply applies AI and actively integrates energy conservation and emission reduction to minimizeinto the AI wave leveraging “optoelectronics + artificial intelli- environmental impact at the source. In green manufacturingwe have introduced eco-friendly products such as laser clean-HGTECH COMPANY LIMITED gence” as an innovation engine to empower industries across

the board in achieving value leaps. In 2025 HGTECH’s core ing systems and intelligent hydrogen energy manufacturing

Chairman Ma Xinqiang holding subsidiaries were recognized as National Advanced solutions empowering our clients’ low-carbon transitions

Collectives in the Industrial and Information Technology through smart factory offerings. Our overseas facilities strictly

System and were included in the national list of key machine adhere to international environmental standards actively

As HGTECH embarks on the 15th Five-Year Plan period we tool enterprises. establishing a green operational system. We consistently

integrate environmental responsibility throughout the entire

are closely aligned with the trend toward the real-world appli- process of R&D production and operations taking concrete

cation of artificial intelligence striving to become a globally Building a Foundation for Lasting Success actions to protect our natural surroundings. HGTECH has beenleading full-stack AI capability enabler integrating “Sensing through Robust Governance successfully recognized as a “China ESG 100 Pioneer amongTransmitting Knowing and Using.” By deeply embedding The Company consistently improves its governance frame- State-Owned Listed Companies” by China Central Television.ourselves into national strategies and future industrial work establishing a modern corporate organizational system As artificial intelligence accelerates its transformation of every

and governance mechanisms with clearly defined rights and facet of human work and life HGTECH is entering a new phase landscapes we leverage technology to address the criticalquestions of our time. Guided by our mission “Innovation responsibilities all aimed at becoming a world-class enter-where we embrace systematic logical and digital thinking. Weprise. Under the Board of Directors we have established the adhere to the execution principles of “clear goals actionableconnects a better world” we integrate ESG principles into ourStrategy and ESG Committee forming a three-tier ESG pathways and tangible results” staying focused on the two

corporate development diligently pursuing high-quality governance structure spanning the “decision-making core strategies of “innovation-driven growth” and “globaliza-growth while fulfilling our responsibilities to society the management and execution” levels. We maintain regular tion.” By fostering sustainable development through continu-

environment and the future. communication with stakeholders accurately identify core ous technological innovation we prioritize the sustainable

ESG issues track performance and benchmark against inter- growth of our businesses. We will continue to ride the wave of

national standards. We have established a robust compliance AI uphold the requirements of ESG governance and relent-

management system reinforcing the “three lines of defense” lessly strive to build a smarter better world.to ensure the coordinated operation of legal compliance09

Company Profile

HGTECH COMPANY LIMITED was established in 1999 in the heart of the "China Optical Valley". In 2000

it was listed on the Shenzhen Stock Exchange. It is a high-tech enterprise group integrating 'research

and development production sales and service' and in 2015 it was recognized as a national-level

innovative enterprise. After years of technological and product accumulation the company has formed

three main business structures: a connectivity business supported by information and communication

technology a perception business supported by sensitive electronic technology and an intelligent man-

ufacturing business supported by laser processing technology and software algorithms. The company is

committed to become a globally leading full-stack AI capability enabler integrating "Sensing Transmit-

ting Knowing and Using".Business Scope

Connectivity Business

The company possesses an industry-leading one-stop vertical integration solution in the optical

communication sector with strategic R&D and large-scale production capabilities covering the

full range of products from chips to devices modules and subsystems. Products include Ultra

high speed transceivers Copper-connect Transceiver Intelligent Projection Headlight Module

Satellite communication Transceiver applied in key areas such as AI computing power and global

wireless communications. The company focuses on four major application scenarios: AIGC

6G/5G-A/satellite communications F5G-A and intelligent connected vehicles aiming to build an

intelligent optical network world and serve top global internet service providers/data application

companies (AI computing) NEMs (network equipment manufacturers) telecom operators and

smart car manufacturers.Sensing Business

The company continuously consolidates its global leadership in thermal management for new

energy vehicles and in temperature pressure and optoelectronic series sensor technologies. It

independently masters the core technologies of sensitive ceramic chip manufacturing and packag-

ing processes for sensors deeply empowering the intelligent upgrading of the entire new energy

industry chain actively lays out emerging fields such as embodied intelligence and low-altitude

economy and provides globally leading multidimensional sensing and control solutions for new

energy and intelligent connected vehicles photovoltaic energy storage smart homes robotics

flying cars smart grids smart cities and other fields.HGTECH COMPANY LIMITED

Stock Code: 000988.SZ

Intelligent Manufacturing Business

The company is the pioneer and leader of China's 'Laser Intelligent Manufacturing' system leading

the formulation of global industry standards for industrial fiber lasers and equipment achieving a

full industry chain layout from chips to devices equipment production lines and smart factories.The technology covers the three major material processing systems of laser subtractive conformal

and additive methods and is committed to providing comprehensive 'Laser Intelligent Manufactur-

ing' solutions for industries such as 3C electronics semiconductor chips automotive and new

energy shipbuilding commercial aerospace and smart agriculture.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 11

Corporate Culture Philosophy Overview of ESG Management

While delivering cutting-edge innovative products and services the Company actively complies with

Mission and Vision Cultural Spirituality and Core Values regulatory requirements from the Shenzhen Stock Exchange. Upholding the principles of ESG manage-

【Our Mission】 ment we continuously refine and optimize ESG mechanisms advance regularized ESG governance and Open Professional Efficient

Innovation fuels a better world integrate ESG practices deeply into daily production and operations to drive high-quality development. In

Unite to Strive 2025 HGTECH further enhanced its ESG governance framework with the goal of building ESG competi-【Our Vision】 Surpass Expectations, tiveness aligned with corporate distinctiveness. A three-tier ESG governance structure “Decision-MakingTo become a globally leading full-stack AICreate Value Layer–Management Layer–Execution Layer” was established to clarify responsibilities at each level. capability enabler integrating "Sensing

Share Success Board of Directors: Oversees strategic ESG decision-making and supervision; Legal & Compliance Transmitting Knowing and Using"

Department: Coordinates ESG implementation under board guidance Business Units & Subsidiaries:

Execute specific ESG works transforming commitments into measurable actions.Identification of Important Issues

Identify important issues

analysis

andsummary

of issues

communications

with stakeholders

identify core issues in the

context of the company ’s

actual situation industry

characteristics

and policy

backgrounds

Financial significance Most important

01. Innovation-Driven 08. Social Contribution 15. Communications with Stakeholders

02. Product and Service Safety and Quality 09. Environmental Compliance Management 16. Anti-Bribery and Anti-Corruption

03. Supply Chain Security 10. Responding to Climate Change 17. Anti-Unfair Competition

04. Employees 11. Waste Disposal 18. Pollutant Discharge

05. Data Security and client Information Protection 12. Energy Utilization 19. Intellectual Property Protection

06. Empowering SMEs for High-quality Development 13. Water Utilization 20.Compliant Management

07. Rural Revitalization 14. Circular Economy

Most important Impact sianificance2 1320.48In 2025 the company's net profit attributable to the parent company increased by 20.48%R&D investment grew by 9.96%

Overseas sales revenue rose by 45.52%. 9.96 45.52

HGTECH deeply implements national strategies and industry development plans closely following the core guidance

of “technological innovation relies first on investment and second on talent.” By 2025 the company will continue to

focus on the construction of the Central Research Institute as a core driver promoting the concentration of innova-

tion investment and high-quality talent on 'global first releases industry-leading specialized and innovative' prod-

ucts achieving multiple breakthroughs in technological research and product development: In the field of industrial

mother machines it has successfully developed the country's first Intelligent Laser Etching Equipment for Complex

Curved Surface Textures and launched the 5th Generation Intelligent 3D 5-Axis Laser Cutting Machine contributing

We and Innovation to the construction of a world-class industrial mother machine hub; in the field of smart agricultural machinery it has developed the country's first All-Weather Intelligent Laser Weeding Robot expanding applications of laser technolo-

gy; in the field of optical communications it has established a 1.6T series optical module product solution and

promoted the research and implementation of next-generation 3.2T CPO technology reaching the international

first-tier technical level; in the field of sensors aligning with Xiaogan's 'China Knowledge Valley' strategic positioning

and the sensor industry cluster development plan the company focuses on breakthroughs in core MEMS technolo-

gies systematically deploying multi-type MEMS sensor products including integrated temperature and pressure

sensors gas sensors and in-vehicle environmental perception sensors consolidating its industrial innovation advan-

HGTECH adheres to independent research and development aims at tage.the goal of “global first - launch industry - leading and specializedrefined characteristic and innovative” and focuses on independent

innovation and industrial chain collaborative innovation to achieve the

upward and innovative development of the enterprise.15

Innovation above all

Highlights of Innovation and Practice in 2025

Innovation Excellence - 2025 Highlights

National Advanced Collective in the Industrial and Information First Prize of Science and Technology Award of the Chinese Society

Technology System for Optical Engineering

Top 100 China Brand Internationalization Benchmark “Development Potential Award” of the Open Innovation Track of the National

“Data Elements ×” Competition FinalsCCTV’s “China ESG 100 Pioneers among State-Owned ListedCompanies” “Golden Laser” New Product Award

Top 10 Most Competitive Optical Device & Auxiliary Equipment “Red Star Award” – Laser Industrial Equipment Innovation Award

Companies in China

Top 10 Most Competitive Global Optical Device Companies

First Prize of Technological Progress Award of the Chinese

Institute of Electronics Highest Level Certification for Integration Implementation (AAA Level)

AAA Credit Rating Certification for China's Backbone Electronic Typical Application Case Award for Welding Innovative Products

Component Enterprises

“Golden Hydrogen Award” – Annual Excellent Solution Provider

Gold Medal of the 50th International Exhibition of Inventions Geneva

Shipbuilding Industry “Strong Chain Brand”

2025 Global Top 10 Optical Device Manufacturers

“Hangjia Aurora Award” – Third-Generation Semiconductor Annual Excellent

2024 China Top 10 Optical Industry Technologies Product Award

2024 Top 100 High-Tech Enterprises of Hubei Province “Hangjia Aurora Award” – Third-Generation Semiconductor Annual Ecological

Chain Supporting Enterprise Award

First Prize of Hubei Provincial Technical Invention Award

Best Laser Intelligent Equipment Technology Innovation Award

Hubei Provincial Manufacturing Champion Enterprise

In-Mold Decorating Association (IMDA) – Best In-Mold Decoration Application

Hubei Provincial Sensor Industry-University Joint Innovation Center Design Award

Hubei Provincial Intellectual Property Protection Workstation New Quality Productivity Recognition in the Inland River Vessel and Offshore

Engineering Industry – Excellence in Marine Equipment Supply

First Prize of Guangdong Provincial Science and Technology

Progress Award 2025 China Automotive Industry Sustainable Development Practice Case

Guangdong Province “2025 Advanced-Level Smart Factory” 2025 Ringier Technology Innovation Award in the Smart Manufacturing Industry

Wuhan Artificial Intelligence Demonstration Application Scenario SENSOR CHINA 2025 “Perception Power Award”

First Prize of Science and Technology Progress Award of the CFCF 2025 Annual Innovative Product Award.Machinery IndustryHGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 17

Hgtech Central Research Institute: Adhering to Organized Innovation

Source of Innovation We have established a two-tier four-echelon R&D structure vertically across the Central Research Institute and core

subsidiaries to coordinate R&D resources across the entire group. At the group level we integrate superior resources

from upstream and downstream industry chains to advance the Central Research Institute focusing on national needs

HGTECH focuses on strengthening technological innovation and product innovation as the logical starting point for and industry trends. We initiate project-based R&D targeting "forward-looking technologies bottleneck technologies

high-quality development. It continuously increases R&D investment and optimizes the innovation system. At the monopolized products and common technical challenges" thereby laying out product and technology roadmaps for the

group level a Central Research Institute has been established to plan and deploy strategic and forward-looking next three to five years. Meanwhile the technology centers of each subsidiary are responsible for iterating specialized

innovation achievements from the top level. As a result a team dedicated to independent innovation has been and sophisticated new products and improving processes. They conduct project-based R&D for projects that can be

formed. With the mission of undertaking major national strategic goals it promotes the self-reliance and self-im- quickly implemented based on client orders and yield high gross margins while also undertaking the engineering and

industrialization of R&D outcomes from the Central Research Institute.provement of optoelectronic technology.CTOs of primary core enterprises are uniformly appointed with their performance assessments centered on technolog-

Taking the construction of the Central Research Institute as the starting point HGTECH focuses on creating a cradle ical innovation and R&D management to coordinate key tasks. Guided by corporate development strategies we scien-

tifically formulate and implement technological innovation development plans. We build a hierarchical R&D project

of innovation a gathering place for high-end talents and a platform for the concentration of innovative resources management system with clear authority and responsibilities improve the structuring of R&D personnel echelons with

for itself. It continuously strengthens the construction of the technological innovation system aims at the command- appropriate compositions and capabilities strengthen the synergy and efficient linkage of internal and external innova-

ing heights of future technological and industrial development and in line with the new trends in industry develop- tion resources and promote the standardization process-orientation and normalization of technology management.ment has achieved phased results in a number of core technical fields such as semiconductor (SiC) wafer process- We focus on core technology breakthroughs in key areas and drive the transformation and application of technological

ing and detection silicon photonics chips and optical modules green ships visual sorting of intelligent cutting and achievements. Through systematic construction and focused breakthroughs we aim to comprehensively enhance the

efficiency of technological innovation and the core competitiveness of the enterprise.blanking production lines in the construction machinery industry and the PTC controller of the thermal management

system for new energy vehicles. It has also made a comprehensive layout in terms of intellectual property rights

achievement awards and the cultivation of technology-based enterprises. In 2025 a total of 433 patent applications

were submitted among which 220 were inventions and 148 were applications for software copyrights. Innovate the Future

The First HGTECH's "V5" Innovation and Entrepreneurship Competition

Since the launch of the inaugural "V5" Innovation and Entrepreneurship Competition of HGTECH a total of 115 projects

have been registered with a large number of them being AI-related. The competition projects focus on cutting-edge

fields such as high-end equipment manufacturing intelligent sensing and new materials demonstrating both techno-

logical innovation and industrialization potential. Internal projects deeply synergize with the company's existing

businesses while external projects offer innovative solutions for emerging markets. This competition has effectively

ignited the innovation enthusiasm of young technical professionals. Through the exchange and cross-pollination of

internal and external projects it has achieved breakthroughs in key technologies and identified new product directions

with strategic value. The implementation of these innovative outcomes will significantly enhance the company's overall

innovation capability. HGTECH has always adhered to creating social value through technological innovation. By estab-

lishing innovation platforms the company aims to facilitate the successful transformation of more outstanding projects

from the laboratory to the market.HGTECH's 3rd Innovation Day

Themed "Intelligence Creates the Future" HGTECH's 3rd Innovation Day showcased a range of cutting-edge scientific

and technological achievements on site. Nearly 300 attendees including invited experts representatives from strategic

cooperation partners fund signing representatives collaborating institutions key clients core backbone talents and

employee representatives gathered to conduct in-depth exchanges and discussions centered on technological innova-

tion and optoelectronic frontiers.Furthermore to fully stimulate the potential of R&D personnel the company resolutely implements intellectual prop-

erty and technological innovation reward systems. It has established dedicated reward mechanisms for researchers

promotes performance management reforms and refines assessment and incentive mechanisms oriented toward

innovation capability and value contribution. The Implementation Measures for R&D Personnel Assessment and

Incentive Management have been enforced granting corresponding rewards to personnel involved in project R&D.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 19

Planning Innovative Talent Development

Technical Advantages:

HGTECH is consistently anchored to the development core of "the company's future lies in innovation the key to Utilizes advanced packaging technology

innovation lies in investment and the focus of investment is talent." The company regards talent as the primary

resource supporting high-quality development broadly attracting talents guided by the need for "high-level precision Equipped with self developed silicon photonics chips

cutting-edge and urgently needed expertise." Focusing on core technological breakthroughs the company dares to Superior signal processing reducing processing requirements on device side chips with outstanding adaptability

think and act innovatively launching the "PhD 500" Plan while continuously deepening the "Hunter Plan" and the

"Young Seedling Plan." It encourages talent scouting by all employees promoting a leap in both the quality and quantity Linear optical technology eliminating the need for DSP chips

of its talent force. The company deeply practices the broad talent view of "use-oriented not necessarily owned but

utilized" forming a high-level "think tank" for the Central Research Institute by engaging 30 top experts including more Product Performance:

than 10 academicians to provide guidance on technological innovation. It continuously intensifies the implementation High speed: 3.2 Tbit/s unidirectional 6.4 Tbit/s bidirectional data transmission per second

of the "Hunter Plan" building a benchmark talent pool for the industry injecting strong momentum into the cultivation

of top-notch talents and safeguarding the company's high-quality development. High integration density: rate capacity per unit area is 11.4 times that of traditional modules (800G OSFP)

Low power consumption: energy consumption per bit reduced by 50%

Maintainability: detachable design with external light source

Deeply Integrating into the Wave Compatible with both air cooling and liquid cooling thermal systems

of Artificial Intelligence Industry chain decoupling

*(Based on laboratory measured data; actual results may vary depending on application scenarios operating conditions and other factors.)

HGTECH's industry?first 3.2T NPO product has already been successfully deployed with leading industry clients

HGTECH AI Strategy achieving not only a breakthrough upgrade in transmission rate but also a comprehensive leap in power

consumption cost and reliability. This marks a new stage where all?optical scale?up enters engineering imple-

mentation.Next HGTECH's 3.2T NPO product will be deeply integrated into key scenarios such as AI large model

Strategic Positioning computing and hyperscale data centers building a solid computing power foundation for the advancement of AI

technology!

To build a globally leading enabler of full-stack AI capabilities in "Sensing Transmission Cognition and Application"

Connectivity Business Sensing Business Intelligent Manufacturing Business (2)HG · Vision Series Industrial Embodied AI Products

supported by information and supported by sensitive electronic supported by laser processing technology

communication technology technology and software algorithms From more precise perception capabilities to more flexible decision-making systems From better-adapted

full-scenario applications to more modular standardized units The HG · Vision series industrial embodied AI

products are fully upgraded Making manufacturing smarter and intelligence simpler.New AI Products

「Eyes」Perceiving the Minute: Order Architect – HG · Vision Sorting

Multimodal sensing breaks cognitive boundaries

(1)3.2T NPO Product 【10000+ Irregular Workpieces · Millisecond Response】

Eyes

Amid the wave of large?scale AI cluster development scale?up interconnection networks face unprecedented Breaks through visual limitations achieving 99%+ precision in pickup

and placement bidding farewell to "seeing without sorting"

challenges in bandwidth density and communication latency. Traditional pluggable optical modules suffer from

high power consumption while CPO solutions entail difficult maintenance and high manufacturing barriers. In

contrast the NPO solution exhibits a strong "greatest common divisor" characteristic: it significantly shortens HGTECH

the electrical signal transmission distance reduces power consumption while retaining the independent replace- Brain Hands

ability of the optical engine thus balancing signal integrity with maintainability.「Brain」Strategizing Globally: 「Hands」Executing Precision:

Full-stack closed-loop drives Flexible execution unlocks new

intelligent decision-making production frontiers

HGTECH's 3.2T NPO product solution Articulated Robot Handling Articulated Robot Palletizing

& Sorting Workstation Workstation

Provides OIF-compliant 3.2T NPO optical engines and supporting external light source modules (ELSFP)

>20m ultra-large field of view recognition

Dynamic recognition of 10000+ components higher

perception higher flexibility

Beyond one station full-chain intelligent collaboration Gantry Robot Handling & Gantry Robot Palletizing

Sorting Workstation Workstation

Intelligent sorting assistant empowers the entire chain

making sorting more intelligent and efficient

3.2T NPO Optical Engine ELSFP Light Source ModuleHGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 21

Steel Artist – HG · Vision Welding

【Programming-Free Teaching · Stable Welding of Complex Seams】 「Speed」Breaks Bottlenecks:

Ultra-wide bandwidth carries massive data

Fully automatic high-precision easy deployment – digital welding experts make production easier

Speed

Vehicle-mounted high-speed

communication optical module

HGTECH

Ultra-high bandwidth: Transmission bandwidth is 10 times higher

Stability Integration than existing copper Ethernet

Extreme compatibility: Supports vehicle interfaces such as MIPI

「Stability」 Conquers All Terrains: 「Integration」Connects the SerDes Ethernet SPI

Superior anti-interference ensures Entire Vehicle:

precise transmission Full-scenario adaptation empowers

intelligent driving upgrades Flexible networking: P2P/P2MP connection methods are flexible

Ground-Rail Teaching-Free Cantilever Teaching-Free Welding Gantry-Type Teaching-Free

Welding Workstation Workstation Welding Workstation Superior anti-interference: EMC performance improved by over

100 times compared to copper networks

AI + 3D vision no teaching no programming – simple and convenient operation

High precision with high flexibility weld seam positioning accuracy <1mm Full-Domain Performance Leap – Intelligent Driving Domain

Multiple intelligent welding workstation configurations for multi-scenario adaptation Microsecond-level transmission delay empowering the implementation of L3 and L4

Built-in expert welding process library supporting various complex welding processes Supports next-generation megapixel-level high-definition cameras for intelligent driving

Compatible with both digital and analog signal sources enabling effortless welding across the entire site

Full-Domain Performance Leap – Cockpit Domain

Breaks through bandwidth bottlenecks for multi-screen interaction enabling the implementation of AI large model applications

Supports smooth display of next-generation 4K/8K ultra-high-definition large screens

Process Judge – HG · Vision Inspection Technological Innovation – EE Architecture Upgrade

【Predictive Intelligent Inspection · Full-Chain Feedback Traceability】 Provides high-speed support for future HPC architectures

An "industrial quality inspection expert" that foresees before events Backbone ring network transmission rate increases by 10 to 25 times

observes during events and gains insights after events Optical fiber weighs only 40% of copper cable and costs only 1/2 of copper cable

Perceives operational specifications understands process and quality

improving yield rates

Accurately identifies over 50 types of micro-defects with a detection (2)Satellite-Borne Optical Communication Modules

accuracy rate of over 99%

HGTECH's satellite-borne optical modules build a solid core foundation for 6G space-air-ground integration. From

AI inspection expert provides yield analysis quality fluctuation analysis

and optimization recommendations achieving a prediction accuracy rate high-speed intra-satellite connectivity to long-distance satellite-to-ground and inter-satellite communication

of over 90% From radiation hardening to ultra-long on-orbit stability Using light as a bridge connecting heaven and earth

jointly marching towards a new future of intelligent connectivity for all things.Intelligent Inspection Workstation *(The above parameters are measured values for customized non-standard automation solutions.)

「Resistance」Mastering Space:

Fearless of radiation long-term on-orbit stability

Resistance

New Scenarios

(1)Vehicle-Mounted Optical Communication Solutions HGTECH 100G SR Satellite-Borne Optical Module:

The Intra-Satellite Data Highway

Speed Integration

Optical Communication for Vehicles has been selected as one of China's Top Ten Automotive Technologies for

2026 and incorporated into the national "15th Five-Year Plan" as a key R&D area for the intelligent vehicle indus- 「Speed」Connecting Satellite to Ground: 「Integration」Connecting All Domains: Carries ultra-high bandwidth data exchange within the

try. "Optical fiber onboard" and "copper-to-fiber transition" have become inevitable trends in vehicular commu- Boundless bandwidth links reaching afar Space-air-ground integration satellite platform and over short distances adapting to core intelligently connecting all things

nication. From higher-speed transmission capabilities to more stable communication architectures and from scenarios such as efficient data distribution within low-orbit

satellites space-based AI computing interaction and

more comprehensive vehicle adaptation to more flexible networking modes HG Tech's Automotive High-Speed interconnection of distributed processors.Communication Optical Transceiver Module bring optical fiber onboard and enable smarter driving.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 23

Technical Advantages: (4)AI Field Investments

Compared to copper cable communication it offers smaller size lighter weight higher speed lower power consumption lower

launch costs and outstanding radiation and interference resistance suitable for high-density integration needs HGTECH Investment and HGTECH Laser jointly initiated the establishment of Harbin HGTECH Zhiyun Technology

Supports multi-channel ultra-wideband communication within the satellite reaching rates of the 100G Ethernet standard Co. Ltd. . Based on a deep insight into the pain points of agriculture and agronomy HGTECH Zhiyun takes "Laser

+ AI + Robotics Technology" as its core and through a full-chain technology closed loop of "Perception-Deci-

sion-Execution" vigorously promotes the transformation of modern agriculture from "chemical intervention" to

"precise physical control."

DWDM Spaceborne Transceiver

HGTECH Investment has directly invested in 2 AI-related project and the fund initiated by HGTECH Investment

Primarily responsible for long-distance highly has invested in 2 projects within the AI industry chain. HGTECH Investment initiated the establishment of

reliable large-capacity communication between HGTECH Future (Wuhan) Venture Capital Fund Partnership (Limited Partnership) focusing on exploring invest-

satellites and for key satellite-to-ground links.ment opportunities in fields such as AI artificial intelligence robotics medical-engineering integration low-alti-

tude economy and upstream and downstream areas of the industry chain. The investment area aims to connect

resources from HGTECH's Central Research Institute research institutes and universities.Technical Advantages:

Compared to traditional microwave communication it offers longer transmission distance higher capacity lower power consumption

smaller size lower channel attenuation and stronger interference resistance

Wavelength adapts to the ITU-T C18~C52 range rates covering 10G/25G+ combined with radiation resistance characteristics

High-precision wavelength division technology paired with EDFA supports 100km-1000km satellite-to-ground and inter-satellite

communication

In the future HGTECH's satellite-borne optical modules will deeply empower 6G communication and space-based

AI computing data centers collectively building the "arteries" and "capillaries" of the low-orbit satellite communi-

cation internet. They will provide a solid cornerstone for the space-based internet in the 6G era driving the com-

prehensive intelligent development of the integration of communication remote sensing navigation and future

space data centers.

(3) All-Weather AI Intelligent Laser Weeding Robot

The All-Weather AI Intelligent Laser Weeding Robot comprehensively covers the three dimensions of Environment

(E) Society (S) and Governance (G) fully demonstrating the core value of technology enabling sustainable

agricultural development and providing a practical reference for the green transformation of agriculture.At the Environmental (E) level the robot uses precise laser weeding to replace chemical herbicides reducing

pesticide residues and soil and water pollution at the source protecting farmland ecology contributing to the

control of agricultural non-point source pollution and promoting green and low-carbon production.At the Social (S) level the equipment can operate automatically around the clock significantly reducing labor

costs and intensity improving production efficiency helping to enhance the quality and efficiency of agricultural

products broadening income-generating paths for farmers and empowering rural revitalization.At the Governance (G) level the company adheres to technological

innovation and compliant development building an intelligent

agricultural equipment system solving the pain points of agricultural

green transformation with technology and achieving a unity of

ecological economic and social benefits.In the future the company will continue to optimize the robot's

performance expand application scenarios promote the popular-

ization of green and intelligent agriculture and support the achieve-

ment of high-quality agricultural development and carbon neutrality

goals.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 25

Collaborative Innovation for Industry-University-

Research-Application Development

The company is always dedicated to the in-depth development of industry-university-research integration focusing

on strategic innovation projects and core technology R&D. By establishing joint laboratories making equity invest-

ments dispatching excellent management personnel and collaboratively overcoming key core technologies it actively

builds cooperation bridges with institutions of higher learning research institutes and industry clients. The company

efficiently integrates and fully leverages social resources to promote the transformation of scientific and technologi-

cal achievements into practical applications fostering overall industry progress and innovation.In 2025 the company collaborated with 19 strategic partners to establish a multi-dimensional collaborative innova-

tion framework: to advance the product portfolio of intelligent microsystems and MEMS sensors; relying on the Laser

Equipment Industry-University-Research Joint Laboratory multiple independently developed semiconductor equip-

ment sets have entered industrial testing; leveraging the Joint Technology Research Center to build industry-leading

technological capabilities in the field of brittle material processing; co-founding the Laser and Intelligent Manufac-

turing Technology Enterprise Joint Innovation Center with the Wuhan Academy of Technology Innovation and jointly

establishing an angel fund to empower innovation development through capital. In the field of industry exchange the

company regularly visits suppliers and key clients and actively participates in various industry exhibitions and forums.By deeply engaging in communication and knowledge sharing it keeps pace with industry development trends grasps

cutting-edge technological developments and seeks potential cooperation opportunities providing valuable industry

insights and technical support for the company's development.Building an Industrial Ecosystem and

Innovation Chain

R&D USE IMPROVE MATURE

HGTECH is consistently dedicated to collaborating with upstream and downstream enterprises concentrating superi-

or resources to collectively address technical challenges and drive collaborative innovation. This approach accelerates

the resolution of critical component and fundamental common challenges "deploying innovation chains around the

industrial chain and laying out industrial chains around the innovation chain" thereby continuously enhancing the

overall competitiveness of the entire industrial ecosystem and expediting the translation of innovative achievements

into strategic industry applications. Leveraging its investment platforms the company integrates high-potential

targets across the industrial value chain. It has established a comprehensive presence in both the laser industry chain

and the ICT optoelectronics industry chain while strategically expanding into sensor domains such as new energy and

MEMS vigorously advancing the transformation and demonstration application of technological innovations.Through mechanisms including equity participation industrial empowerment capital linkages talent deployment and

collaborative breakthroughs in core technologies HGTECH has cultivated a deep industrial network fostering numer-

ous innovative enterprises that possess proprietary core technologies. By signing strategic collaboration agreements

with over 30 upstream and downstream entities to promote joint innovation the company has enhanced the integrity

and competitiveness of the energy optoelectronics and information optoelectronics industrial chains. This has estab-

lished a product evolution pathway of "R&D – Application – Enhancement – Maturity" assisting product-focused

business units in exploring new frontiers cultivating new growth drivers and developing new partnerships.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 27

"Management Innovation" for Product Safeguarding the "Golden Reputation"

Quality Enhancement of Intellectual Property

HGTECH comprehensively promotes a "Holistic Quality Concept" covering three dimensions: product quality As a listed company and an innovative enterprise HGTECH integrates intellectual property (IP) protection into the entire

service quality and operational quality. Key indicators are established in areas such as quality management and process of corporate management as a crucial element of its development. It has formulated the "HGTECH Intellectual

lean management to refine management granularity and increase profit margins. Specific measures include: Property Management Measures" and its implementation rules effectively implements laws and regulations such as the

improving headquarters' quality functions; establishing a quality qualification evaluation system; refining a 16-char- "Patent Law" and "Trademark Law" and continuously improves the IP management mechanism in line with the compa-

acter Group quality policy ("Accurate Requirements Scientific Planning Prevention First Do It Right the First Time") ny's actual development situation. The company strengthens R&D management throughout the entire lifecycle to

through executive training sessions; studying the "Zero Defects" management philosophy and reflecting on the enhance the quality of IP and scientific/technological achievements. It drives the full integration of IP management into

quality loss costs of PONC (Price of Non-Conformance); initiating the first Lean Black Belt talent cultivation the implementation process of major special projects and key products forming a comprehensive IP protection system

program; and introducing value stream mapping methodology for the first time to sort out key projects across the encompassing patents technical secrets software copyrights and other forms. A patent risk early warning and

entire value chain linking them with belt-level talents. Through these measures a company-wide quality awareness response working mechanism has been established. For key products of core holding companies professional tools like

has been preliminarily formed product market indicators have significantly improved and the company's brand the AI-empowered Eureka system and patent search databases are utilized combined with trademarks patents

value has become more prominent.standards and other multidimensional elements to provide comprehensive and standardized protection weaving an IP

protection net for specialized and sophisticated new products. The construction of the IP management team is

HGTECH consistently adheres to the "client-centric" value and implements it in specific work focusing on client

concerns ensuring batch product consistency and guaranteeing that product quality meets client requirements and strengthened with regular training organized covering trade secrets trademark usage copyrights etc. to comprehen-

conforms to standards. The company earnestly implements and complies with domestic and international quality sively enhance the capability to create utilize protect and manage IP. Concurrently legal means are used to protect

management system requirements such as ISO 9001 ISO 14001 TL9000 (telecommunications industry) and rights avoiding risks of product counterfeiting and technology leakage caused by personnel turnover thereby effectively

IATF16949 (automotive industry) and possesses two categories of national CNAS-certified testing laboratories. In safeguarding the company's legitimate rights and interests.accordance with production standards of different industries and internationally leading quality management

concepts the company formulates and implements quality management regulations like the "Quality Management While strictly protecting its own IP rights HGTECH also rigorously manages itself to ensure it does not infringe upon

Manual" "Non-Conforming Product Handling Procedure" and "Measures for Quality Reward and Punishment the IP rights of others. In the R&D and technological improvement of new technologies processes and products it fully

Management" establishing a quality management system covering the entire product lifecycle from design raw utilizes IP literature to determine correct research directions and technical routes raising the starting point of R&D and

material procurement production delivery to after-sales service. Simultaneously through measures such as avoiding duplicate development or IP infringement disputes.production skills training quality and efficiency improvement proposals OCC (Operation Control Center) quality

improvement activities and supplier quality performance assessments it comprehensively enhances product In 2025 focusing on market and client needs and by guiding innovation in key new product and technology R&D

service and operational quality. HGTECH filed a total of 433 patent applications for the year including 220 invention patents. It also applied for 148

software copyrights and published 10 national standards and 9 industry standards where it led or participated in their

In terms of using management innovation to improve product quality HGTECH is driven by the in-depth implemen- formulation or revision.tation of its quality policy promoting the shift of quality management from institutional requirements to behavior

embraced by all employees. Through a three-tiered progression of "key personnel internal training full personnel HGTECH owns 13 national-level talent and innovation platforms including a nationally recognized enterprise technology

transfer training and scenario-specific training" it achieves 100% coverage in communicating the quality policy center a national-level industrial design center national CNAS laboratories and a post-doctoral scientific research

ensuring that quality awareness truly permeates every aspect of daily work. At critical nodes such as supplier workstation. The company has been successively recognized as a National Innovative Enterprise and a National

admission R&D design process control and finished product reliability the company fully introduces the Zero High-tech Enterprise. It has also received honorary titles such as National "Little Giant" Enterprise Specialized in Niche

Defects management philosophy emphasizing "doing things right the first time" to reduce deviations at the source

Sectors and National Intellectual Property Demonstration Enterprise.thereby building a quality assurance system covering the entire chain continuously strengthening product consis-

tency and reliability.To further consolidate the quality talent echelon HGTECH has established a quality engineer qualification assess-

ment mechanism and held its inaugural Quality Training Camp focusing on enhancing specific competencies

around actual business scenarios. Through systematic cultivation the professional level and management effec-

tiveness of the quality engineer team have been significantly enhanced providing strong support for deepening

quality management. Concurrently the company actively explores the implementation pathways of lean methods in

quality improvement encouraging various departments to undertake special projects focusing on operational

quality. The development and application of lean tools the exploration of modular improvement paths and the

gradual integration of AI technology into improvement practices make quality enhancement more concrete and

quantifiable. The Group's annual improvement achievement presentation meeting and the lean study tour exchange

platform create conditions for replicating and promoting frontline improvement experiences. The effectiveness of

cost-down efforts far exceeded expectations and the lean philosophy has since extended from the manufacturing

center to a wider range of business units.Through the aforementioned practices HGTECH has not only achieved innovative breakthroughs in its quality

management mechanism but has also gradually built a self-iterating and continuously evolving quality management

ecosystem providing long-term assurance for the stable improvement of product quality.29

Corporate Governance Structure

The Company strictly complies with the requirements of laws regulations and relevant normative documents includ-

ing the Company Law of the People's Republic of China the Code of Corporate Governance for Listed Companies

and the Shenzhen Stock Exchange Listing Rules. It has established the shareholders' meeting the board of directors

and the management team forming a corporate governance mechanism with clearly defined powers and responsibili-

ties and standardized operation. The board of directors has established the Strategy and ESG Committee the Nomi-

nation Committee the Remuneration and Appraisal Committee and the Audit Committee. Each committee has clearly

defined powers and responsibilities and performs its own functions effectively ensuring the impartiality and scientific

soundness of the Company's governance decisions.We and Governance HGTECH Governance Structure Organization Chart

Shareholders' Meeting

Strategy and ESG Committee

Sound governance and compliance management are the fundamental guarantees for an Nomination Committee

enterprise's sustainable development. HGTECH continuously promotes the enhancement Board of Directors

and improvement of its corporate governance system perfects the construction of its

compliance management system standardizes internal control systems and institutional Compensation and Performance Committee

development and actively maintains good investor relations to ensure the company's

steady and robust development.Audit Committee

Executive Management

The meeting statistics for shareholders and board of directors

The Company's Shareholders'

Meeting Board of Directors are in 2025 are as follows:

responsible for reviewing and

approving major matters related The Shareholders' Meeting convened 5 times

to the Company's development.Reviewing a total of 15 proposals

In 2025 the Company complied

with the requirements of the

new Company Law and abol- The Board of Directors convened 12 times

ished the Board of Supervisors. Reviewing a total of 40 proposalsHGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 31

Internal Control Construction and

Risk Management

The Company places high importance on internal control construction and risk management. During the reporting period in

Shareholders' Meeting: As the highest authority of the Company it makes decisions on the accordance with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines the Com-

Company's operating policies and investment plans in accordance with the law; elects and chang- pany updated and improved its internal control system in a timely manner establishing a scientifically designed concise and

es directors ; and reviews and approves the reports of the Board of Directors. applicable and effectively operating internal control system. This ensures that risk management processes are integrated into

every aspect of the Company's operations and management. The Audit Committee and the internal audit department jointly

Shareholders' form the Company's risk and internal control management organizational system supervising and evaluating the Company's

Meeting internal control management which mainly includes environmental control business control electronic information system

control and internal audit control. Through the operation analysis and evaluation of the internal control system the Company

effectively prevents risks in its operations and management promoting the achievement of internal control objectives.Board of Directors: The Board of Directors consists of 9 directors including 3 independent direc-

In 2025 the Company engaged Daxin Certified Public Accountants (Special General Partnership) as its internal control audit

tors. institution for the year. They evaluated the effectiveness of internal controls for all headquarters functional departments and

As the decision-making body of the Company its main responsibilities include appointing suitable subsidiaries at all levels. The total assets of the entities included in the evaluation scope accounted for 94.99% of the Compa-

candidates scientifically and reasonably in accordance with the procedures stipulated by the ny's consolidated total assets and their total operating revenue accounted for 99.58% of the Company's consolidated operat-

Nomination Committee convening the Shareholders' Meeting executing the resolutions of the ing revenue. No material deficiencies were found in the design or implementation of the Company's internal controls throughout

Shareholders' Meeting and managing the Company's information disclosure matters among the year.others.The Company’s annual Internal Control Self-Assessment Report is published on the website of the Shenzhen Stock Exchange

The Company's Board of Directors has established a Strategy and ESG Committee. This commit- together with its annual report. In addition to the supervision of the Company’s risk management and internal control system

tee is a specialized working body under the Board primarily responsible for researching and by internal and external audits the Strategy and ESG Committee conducts feasibility studies on the Company’s business strat-

making recommendations on the Company's long-term development strategic planning major egies major investment and financing plans major capital operations and asset operation projects and provides recommen-

strategic investment decisions sustainable development planning and ESG matters. The commit- dations on potential risks.tee is responsible for researching the Company's long-term development strategic planning major

strategic investment decisions sustainable development planning and ESG matters and making

recommendations to the Board of Directors on the following matters: (1) The Company's develop-

Board of Information Disclosure and

ment strategy and medium-to-long-term development plans; (2) Plans for increasing or decreas-

Directors

ing registered capital issuing corporate bonds merger division or dissolution; (3) Major asset or Standardized Operations

business restructuring external acquisitions mergers and asset sales; (4) The Company's ESG

vision ESG development strategic plan ESG governance structure ESG management system The Company places high importance on information disclosure and communication with

ESG-related disclosure documents and ESG-related risks and opportunities with a significant shareholders and creditors. In accordance with the provisions of laws and regulations

impact on the Company's business; (5) Other matters stipulated by laws administrative regula- such as the "Company Law of the People's Republic of China" the "Securities Law of the

People's Republic of China" and the "Administrative Measures for Information Disclosure

tions provisions of the China Securities Regulatory Commission and the Company's Articles of

of Listed Companies" the Company releases information to investors through various

Association. The committee holds regular meetings and interim meetings. Regular meetings are meetings publications and online platforms. These channels include the Annual General

held at least once a year. Interim meetings are convened irregularly as needed. Meeting of Shareholders regularly published annual reports semi-annual reports and

quarterly reports as well as interim announcements prospectuses and press releases.Information about the Company is accessible on platforms such as the Shenzhen Stock

Exchange website China Securities Journal Shanghai Securities News Securities Times

Securities Daily and Cninfo (http://www.cninfo.com.cn). The Company discloses periodic

reports and interim announcements as required ensuring the content is truthful accurate

and complete free from material errors and without instances of being questioned by

regulatory authorities or media.In 2025 the Company issued a total of 135 announcements and disclosure documents.During the year the Company held several large-scale performance briefings and investor

communication activities with the Chairman and senior management team actively

participating in interactions and exchanges. The Company was awarded an A rating(highest level) in the“2024–2025 Information Disclosure Assessment of Listed Compa-nies”by the Shenzhen Stock Exchange and has received this honor for 10 consecutive

years. This recognition from the regulatory authorities and the broad investor community

has enabled the Company to play an exemplary role in the market.In 2025 the Company received a series of awards including:

* Top 100 Value Listed Companies on the Main Board by Securities Daily;

* Golden Award for Investor Relations–Outstanding IR Team by Panorama Network;

* Outstanding Award for Concern for Small and Medium Investors by Panorama Network;

* Compliance Value Communication Award by Yidong.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 33

Investor Relations Management Shareholder Returns

The Company actively implements the important requirements of the China Securities Regulatory Commission to

Investor communication methods "strengthen the investor-oriented culture of listed companies and strive to enhance the investment value of listed com-

panies." Adhering to the philosophy of creating more value for shareholders and considering the Company's sustainable

development it continuously improves scientific continuous and stable dividend distribution decision-making and

supervision mechanisms. Dividends are distributed strictly in accordance with the profit distribution policy formulated in

the Company's Articles of Association and the relevant provisions of the review procedures fully protecting the legiti-

mate rights and interests of small and medium investors and reciprocating investors' trust and expectations in the Com-

pany. Since its listing the Company has distributed cash dividends to investors for many consecutive years with cumu-

lative cash dividends amounting to approximately RMB 782 million since 5 years. The dividend payout ratio has gradually

Issuing announcements and hold an earnings Participate in various Accumulated number of increased actively rewarding the vast number of investors and highlighting the Company's long-term investment value.disclosing documents briefing exchange meetings investors communicated with

+ + To promote the Company's stable and sustainable development and reciprocate investors' trust and expectations 135 3 380 3000 during the reporting period considering factors such as the Company's profitability operational development needs and reasonable returns to investors the profit distribution proposal for HGTECH for the 2025 fiscal year was approved

at the 22nd Meeting of the Ninth Board of Directors as follows: It is proposed that based on the total share capital of

995702707 shares (derived from the total share capital of 1005502707 shares as of the end of 2025 after deducting

In 2025 amidst a complex and volatile market environment the capital market experienced fluctuations under the 9800000 repurchased shares) a cash dividend of RMB 2.50 per 10 shares (tax inclusive) will be distributed to all

influence of multiple factors. The Company's Board of Directors placed significant emphasis on investor relations shareholders. No bonus shares will be issued and no capital reserve will be converted into share capital.The total cash

management supervising and guiding the Company to promptly address market concerns accurately and compre- dividend to be distributed amounts to RMB 248925676.75.The remaining undistributed profit of RMB 495017189.22

hensively respond to and clarify issues of market interest and actively communicate the Company's long-term will be carried forward to the next fiscal year.value and development strategy thereby stabilizing market sentiment and enhancing investor confidence.During the reporting period the Company maintained high-frequency in-depth communication with institutional

investors through both online and offline channels providing updates on the Company's development progress.Concurrently the Company maintained communication with regulatory authorities and financial media and contin- Cash Dividends on Ordinary Shares in the Past Three Years

uously strengthened its engagement with small and medium investors. Leveraging diversified communication

channels such as performance briefings shareholder meetings on-site research Hudongyi interactive platform For the fiscal year

and investor hotlines it proactively conveyed the Company's development value carefully listened to investor

inquiries and suggestions and facilitated an objective comprehensive and in-depth understanding of the Compa-

ny. This has fostered a long-term stable and positive interactive relationship with investors consolidated share- 2025

holder consensus and contributed to the Company's long-term stable and robust development.For the fiscal year cash dividend (pre-tax) amount:

2024201100541.40

cash dividend (pre-tax) amount:

248925676.75

For the fiscal year cash dividend (pre-tax) amount:

draft 2023 150825406.05

Share Repurchase:

In 2025 the Company proactively implemented share repurchases. Through centralized auction trading the Com-

pany repurchased a total of 9.8 million shares of the Company’ s stock accounting for 0.97% of the total share

capital.The repurchased shares will be used for the employee stock ownership plan or equity incentive plans at an

appropriate time in the future.This has not only effectively safeguarded the Company’ s value and market confi-

dence but also laid a solid foundation for improving the long-term incentive mechanism.persons

times

sessions

piecesHGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 35

Compliance Management

Stakeholder Communication System Development

Guided by its operational philosophy of "providing satisfactory products to society creating space for innovation for

employees and generating substantial returns for shareholders" the Company is committed to its responsibilities The company continuously improves its four-level compliance organizational structure coordinating and integrating

towards stakeholders including shareholders and investors clients employees and value chain partners. It maintains resources from the group headquarters subsidiaries and external legal counsel to steadily advance the enhancement

regular communication with stakeholders through various channels and methods actively soliciting their opinions and of its compliance management system.feedback.Adhering to the principle of advancing all reform initiatives including the "Science and Technology Reform Action"

within the legal framework the company strengthens legal review based on the principles of "risk orientation serving

Stakeholders Key Concerns Communication andResponse the overall strategy comprehensive coverage and targeted focus." It refines the contract management system and promotes the development of a full lifecycle approach to contract management. Key compliance manuals have been

issued in critical areas including the Compliance Guidelines for Preventing Occupational Crimes Ten Compliance Rules

Standardized corporate governance for Managers Legal and Compliance Risk Alerts for Technology Companies and Essential Knowledge of Common

Economic performance Shareholders' meetings and board meetings Overseas Compliance Risks for Chinese Enterprises. Focusing on key personnel critical processes and significant

Shareholders and Investors R&D and innovation Regular information disclosure events the company conducts regular and ad hoc compliance inspections covering contracts litigation cases and

Protection of shareholders' rights Expanding investor communication channels trade secrets and oversees the implementation of corrective actions. It organizes "Business-Law Workshops" to

integrate business and legal perspectives and conducts multiple training sessions directly empowering over 2500

Investor relations management participants. By consolidating resources from more than 40 domestic and international law firms and updating stan-

dard contract templates for sales procurement infrastructure projects and technology collaborations the company

Legal and compliant operations strives to build a robust compliance ecosystem.Product quality and safety Research and inspections

Regulatory Authorities Promoting economic development Daily communication and

Environmental management information reporting Data Security and Clients

Social responsibility Information Protection

Online official website / official WeChat

Product quality and safety In the digital era information security has become one of the core elements of enterprise operation which is directly Offline exhibitions and promotional activities

Promoting product and service innovation related to the enterprise’s reputation client trust and business continuity. HGTECH has been continuously carrying Professional sales team

out and improving its information security work. In order to ensure the comprehensiveness and effectiveness of client

Clients Intellectual property protection Factory open days

data security the company has established a multi-level and all-round information security architecture.Information security and privacy protection After-sales service

Protecting client rights Regular visits System Security

Satisfaction surveys Physical Security

Manage and control system resources

Protect the physical facilities equipment operational activities and users of the

Occupational health and safety Establishing a reasonable compensation or areas of the information system from system which serves as the foundation and benefits system unauthorized access and misuse. of information system security.Safeguarding employee rights and benefits Diversified training system

Employees Good working environment Open communication channels Information Database Security

Sound career development system Internal cultural publications Security

Festival and recreational activities Architecture Ensure the confidentiality integrity Information security and privacy protection consistency and availability of the

Satisfaction surveys Network Security information in the database.Performing contracts in accordance Ensure that the hardware and software of the

Sustained and stable cooperative relationship with the law network system as well as the data within the Terminal Security

Suppliers and Partners Open and fair procurement procedures Technical exchange meetings system are not subject to accidental or malicious

Supplier bidding and audits changes damage or leakage. Guarantee the

Protect the security of computer ter-

Compliance with business ethics continuous reliable and normal operation of the minals as the infrastructure for infor-

Supplier training system and the uninterrupted network services. mation storage transmission and

application processing.Accurate and truthful information disclosure Online official website / official WeChat Institutional Guarantee:

Media Product R&D and innovation Media open days

HGTECH has established a comprehensive information security management system encompassing information security

Maintaining good cooperation Strengthening daily communication management regulations system access management regulations operation and maintenance management regulations etc.At the core holding company level the company has established regulations for computer room security management laptop

management personal terminal behavior management and removable media usage and disposal as well as procedures for

Engaging in public welfare and charity Social welfare projects

Communities and data authorization applications data anomaly event management standards and emergency response mechanisms. By Promoting industry development Community volunteer activities

the Public conducting log reviews and supervision of relevant data and client information data security and client privacy are fully

Environmental management Strengthening environmental management guaranteed.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 37

Anti-Bribery and Anti-Corruption

Information Security Management Measures The Company consistently regards anti-bribery and anti-corruption work as the lifeline of its compliant operations constructing a risk prevention and control network through a multi-level system. The Company fully leverages the

guiding role of the "key minority." The management teams of the Group and its subsidiaries sign executive compli-

ance commitments annually conduct compliance oath-taking and publicly demonstrate their compliance stance.Through systems such as the "HGTECH Co. Ltd. Compliance Management System" and the "HGTECH Co. Ltd.Internal Audit Punishment Management Measures" the Company establishes and improves a self-discipline and

integrity system highlighting anti-bribery and anti-corruption requirements. By distributing and promoting the

Construct the network according to the third-level security protection requirements achieving high-level security "Integrity and Compliance Handbook" and conducting training employees are prohibited from engaging in commer-

standards in the five aspects of physical environment network host application and data ensuring data integrity cial bribery and corrupt practices in any form including but not limited to directly or indirectly giving and accepting

confidentiality and business continuity. Build a multi-layered protection system through technical and manage- cash gifts marketable securities physical goods kickbacks travel and entertainment expenses as well as non-pe-

ment means. cuniary benefits such as employment opportunities.Network Deploy firewalls web application firewalls (WAF) threat detection and prevention systems to avoid external network attacks.Security Deploy Internet behavior management systems to regulate users’ Internet behavior improve network security The Company publishes its reporting hotline and email address through public channels and issues integrity propos-

protect corporate information security and enhance employees’ work efficiency simultaneously. als during major festivals. It exposes violations on the "Compliance Exposure Platform" and tracks accountability and

Deploy bastion hosts to achieve access control auditing and monitoring preventing illegal access and operations.Deploy virtual private networks (VPNs) to enhance network security and privacy encrypt data transmission and disposal. The HGTECH compliance evaluation standards are updated annually and incorporated into the manager's

ensure the security of remote access. annual salary assessment promoting the implementation of compliance management actions from top to bottom. By

Deploy access control systems to ensure compliant access and prevent security risks. setting up a "Suggestion Box" to unblock reporting and suggestion channels daily supervision discipline enforce-

ment and compliance management are strengthened and refined. At the same time it actively carries out pairing

and co-construction activities such as "Intelligent Integrity Clear Breeze" with client enterprises deepening the

Deploy unified anti-virus software issue strategies from the background to strengthen the operating system and integrity concept through shared learning and construction and continuously consolidating the defense line for clean

System ensure system-level security. employment. In supply chain management it is clearly stipulated that anti-bribery and anti-corruption clauses are

Security Strengthen password management strategies.Regularly conduct vulnerability scanning and patch updates for the system and promptly fix known security embedded in cooperation agreements requiring suppliers to sign integrity commitments. Integrity reminder emails

vulnerabilities. are sent quarterly to ensure both parties jointly abide by the code of business conduct. Concurrently for the supplier

admission process a strict anti-unfair competition review mechanism has been established. Departments such as

audit and procurement jointly conduct thorough verification of supplier relationships using public platforms like

Use an all-in-one backup device for data backup integrating backup storage and recovery functions to protect Qichacha. Enterprises with conflicts of interest or potential unfair competition risks are subject to a "one-vote veto"

Data data security quickly restore services and ensure business continuity. rule resolutely eliminating violations and effectively building a "pro-clean" and win-win cooperative relationship.Deploy cloud desktops to centrally manage and control R&D data enhance data security support remote collab-

Security oration flexibly expand resources and reduce operation and maintenance costs.Use encryption software to encrypt R&D data in real time to ensure data confidentiality integrity and availability.Anti-Unfair Competition

Improve information security management systems and processes. Through regular security audits risk assess-

ments and other activities ensure the effective implementation and continuous improvement of information

Management The Company adheres to the principles of honesty and trustworthiness equal negotiation and mutual benefit and security measures.Security Implement strict access control strategies to ensure that only authorized users can access sensitive information. win-win results. It upholds business ethics complies with relevant laws and regulations and conducts market compe-

Regularly review the account permissions of application systems and promptly clean up unnecessary permission tition in accordance with the law. The Company places the concept of fair competition above its own economic inter-

settings. ests resolutely prohibiting acts of unfair competition and other behaviors that violate business ethics and disrupt the

order of market competition. The Company promotes and implements its anti-unfair competition requirements

through regular training and the distribution of warning cases.Employee Regularly conduct information security training for employees to improve their security awareness and prevention

Awareness capabilities.Educate employees to identify common network attack methods such as phishing emails and malware and learn

of Security how to prevent them.Data Encryption: Encrypt client information during storage and transmission to prevent the illegal acquisition or

Client tampering of information during the storage and transmission processes.Information Access Control: Implement strict access control strategies to ensure that only authorized personnel can access

client information. At the same time regularly review and update access permissions.Security Security Audit: Regularly conduct security audits of the use of client information to ensure that the use of client

information complies with laws regulations and company policies.39

Supply Chain Security

Regarding supply chain management in order to standardize the bidding activities in the supply chain and promotethe refined management of procurement the company has formulated the “Measures for the Management of SupplyChain Bidding of HGTECH”. A procurement committee has been established at the group level and the construction

of the group-level supply chain management system of HGTECH has been launched and continuously promoted. It

supervises the implementation of the supply chain management system and major special projects. The procurement

departments of each subsidiary are responsible for the qualification examination and daily management of suppliers

to ensure that the procurement work is “open fair and just”.In terms of supply chain management capabilities the company is committed to promoting the high-quality develop-ment of the supply chain ecosystem. Through the strategy of “controlling resources upstream and channels down-We and Partners stream” it continuously optimizes and improves the supplier admission and evaluation system and builds a stable efficient and sustainable supply chain management system. This ensures that the introduced suppliers meet high

standards and strict requirements prevents supply chain risks lays a solid foundation for the high-quality develop-

ment of the supply chain ecosystem and provides strong support for the long-term development of the company.Supplier Controlling supplier admission is an important way to ensure the quality of goods or services from the

source. The company strengthens the management of supplier performance evaluation by strictly

Admission implementing the “Measures for the Management of Supplier Development and Evaluation” and seeks

The Company steadfastly upholds an integrity-based for excellent supplier partners to establish long-term and stable cooperative relationships with them.business principle attaches great importance to its The company adopts unified standards for the development selection evaluation and management of

suppliers to ensure that suppliers enjoy equal rights to know choose and participate. It scores suppli-

collaborative relationships with suppliers and clients ers according to the procurement amount importance delivery efficiency and quality and conducts

fully respects and protects their legitimate rights and hierarchical management.interests and adheres to the principles of integrity The list of supplier admission qualifications includes

fairness and impartiality. By doing so it jointly cre-

Basic Qualifications Business license / credit certificate / authorized agency license

ates a sound cooperation ecosystem and atmosphere

continuously pursues the goal of mutual benefit and Professional Product quality certification report /industry admission certificate (such as

Qualifications special equipment qualification) /quality management system certificate

achieves win-win outcomes.Additional Verification Social responsibility compliance certificate /environmental managementsystem certification / etc

In order to further standardize the company’s procurement behavior ensure the quality and efficiency

Procurement of the company’s material procurement and reduce procurement costs each subsidiary has formulated

the “Procurement Management Measures” in combination with its own actual situation. The procure-

Process ment process implements three-level business management covering requirements procurement and

warehousing.Collect procurement requirement information and formulate a demand

Requirements plan; Communicate with the procurement management department about the model selection; Fill in the “Procurement Application Form”

and submit the demand application.Purchase management department is responsible for: standardized

Procurement management of material coding; supplier sourcing bidding pricing small-batch trial and bulk procurement; risk warning; supplier perfor-

mance assessment.Perform acceptance and warehousing and warehouse management

Warehousing of purchased materials in accordance with the Incoming Inspection Control Procedure;

Inventory / Dead Stock Early Warning.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 41

Protect Clients’ Rights and Interests

Supplier The Company has formulated the "Supplier Performance Assessment Management Measures" to conduct objective and comprehensive evaluations of suppliers from multiple dimensions including

Assessment supplier scale product quality order delivery and after-sales service through measures such as

inspections performance assessments and capability evaluations. Suppliers are classified into four

tiers (A B C D) based on the assessment results enabling the selection of the best partners and

suppliers while eliminating underperformers. This process aims to establish a roster of excellent core

partners and suppliers thereby fostering a robust business ecosystem for the Company.Maintain normal procure- Reduce the procurement share. Issue a notice to stop supply Give priority to placing According to the assessment

ment. The Quality Depart- and require improvement orders with such suppliers results issue rectification warn-

ment shall through data within one month. If there is and increase the order ings to the suppliers and require

analysis support the sup- no improvement after the quantity; Relax inspection comprehensive rectification. If

or sampling inspection. p l ie rs to cont inuous ly there is no improvement the

re-evaluation the supplier

improve. supplier will be downgraded to will be directly eliminated.level D.Improve the supplier admission and evaluation system strictly control the situation where

Improve Supply technical personnel of product lines designate suppliers and achieve the whole-life cycle

Chain Management management of suppliers.Capabilities Optimize the supply chain process enhance the collaborative efficiency of the supply chain

take into account both joint and coordinated management and differentiated competition

and establish a more efficient flexible and competitive supply chain management system.Strengthen risk control and management enhance the awareness of integrity and

self-discipline and ensure the legality and compliance of operations.Supporting the High-Quality Development of

Small and Medium-Sized Enterprises

In 2025 the company organized activities such as quality monthly meetings quality quarters and on-site audits to

provide management guidance to some upstream enterprises.Case Study:

To effectively enhance the quality management and standards of its suppliers (small and medium-sized enterprises)

HGGAOLI in collaboration with internal and external expert resources carried out a series of targeted training

programs for suppliers. These included specialized training on the 8D methodology OST report/PPAP submission

requirements and problem explanation change management training PPAP production part standard procedure train-

ing SMT key control items training and foreign object control. In addition several technical exchange activities were

organized including but not limited to inviting experts from friction welding equipment manufacturers and sealing ring

suppliers for on-site technical discussions and benchmarking exchanges. Through comprehensive and diverse

empowerment initiatives the company effectively helped suppliers enhance their overall competitiveness achieving

coordinated development between supply and demand sides.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 43

Client Satisfaction Management

The Company consistently values client feedback and conducts client satisfaction measurements in strict accordance

with the established "CX08-01 client Satisfaction Evaluation Procedure." Data is primarily collected through electronic

questionnaires and telephone interviews. Upon completion of client satisfaction surveys the Company requires each

subsidiary to hold summary and analysis meetings to reflect on the measurement methods and survey results and to

generate client satisfaction reports. This process continuously enhances the Company's service quality and standards

strengthening its market competitiveness. Furthermore the Company regularly conducts training for its online and

offline marketing personnel such as the "Tempering Plan" training courses to continuously improve their marketing

capabilities and client service skills thereby enhancing the quality of client service.In 2025 HGTECH and its subsidiaries received numerous awards and recognitions including: Qianxing Award "Excel-

lent Production Line Equipment Award" Deye Shares "Excellent Quality Award" Skyworth Electrical "Excellent Quality

Award" Hisense Group "Strategic Partner Award" and "Quality Craftsmanship Award" TCL Industries "Outstanding

Supplier" Li Auto "Excellent Quality Award" and "Efficient Cooperation Award" SAIC-GM "Enterprise Award" Haier

Supplier Global Strategic Cooperation Award EVE Energy "Excellent Quality Award". Additionally the Inland New

Energy Ship Manufacturing Demonstration Base Project was recognized as a Shandong Provincial Advanced-Level

Intelligent Factory and the Company received the Changhong "Annual Excellent Partner" award among other honors

and commendations.45

Environmental Management System

HGTECH integrates the concept of sustainable development into the company’s operation deeply learns and imple-

ments Xi Jinping’s idea of ecological civilization and takes the company’s social responsibility work into overall

consideration. In response to the “dual carbon goals” HGTECH integrates the concept of green low-carbon and

sustainable development into the company’s high-quality development strategy. Complying with the trend of industry

change under the concept of green energy-saving HGTECH further promotes the construction of green industrial

manufacturing system emphasizes the catalytic role of industrial development in driving revitalization and strictly

implements regulations related to environmental protection emission reduction production safety and labor law then

promoting the sustainable development of the company and whole society.Environmental Compliance Management

To ensure the orderly implementation of environmental management work

HGTECH has formulated a series of environmental protection systems such as

We and the Environment Environment and Occupational Health and Safety Management Manual Proce-dures for Environmental Factors Identification Evaluation and Control Safe

Production Responsibility System and Safety Management System in accor-

dance with Environmental Impact Assessment Law of the People’ s Republic of

China and other relevant regulations. According to the requirements of GB/T

2400/ISO 14001 Environmental Management Systems— Requirements with

Guidance for Use GB/T 45001/ISO 45001 Occupational Health and Safety

Management Systems—Requirements with Guidance for Use and AQ/ T9006

Basic Specifications for Work Safety Standardization and HGTECH adheres to

the principle of safety first and environmental protection combined with the

HGTECH is deeply integrated into the national "Dual Carbon" strategic

characteristics of relevant EHS management activities involved in the company

framework consistently elevating the concept of green development to a product design development production and service. Additionally HGTECH es-

strategic position within the company. Committed to the new development tablishes EHS management system and EHS Management Manual which clearly

defines EHS management system policies objectives and operational proce-

philosophy of innovation coordination green development openness and

dures in accordance with relevant laws regulations and other requirements.sharing the Company continuously refines its environmental management

HGTECH actively responds to the industrial green development plan— Made in China 2025 carries out standard-

system strengthens resource recycling and enhances energy consumption

ized and normalized management in strict accordance with ISO14001:2015 Environmental Management Sys-

control. Through ongoing exploration in the practice of green low-carbon tems—Requirements with Guidance for Use firmly implements the national environmental policies and regulations

and sustainable development innovation HGTECH is making every effort to strictly enforces the national local and industrial standards also analyses predicts and evaluates the impact on the

ecological environment in advance. HGTECH has continuously increased investment in energy-saving emission

contribute to the realization of the "Dual Carbon" goals.reduction and technological transformation and taken the initiative to phase out inefficient production equipment.Based on ensuring that discharge of wastewater waste gas noise and solid waste meets the regulatory standards

HGTECH further promotes the lean management continuously improves the products’ process to enhance the

treatment efficiency of three-waste and energy utilization finally implements green manufacturing and commits

itself to the creation of green factory.The safety and environmental protection departments of HGTECH and subsidiaries are responsible for the estab-

5 lishment implementation maintenance and improvement of the environmental protection system. In 2024 HGTECH was awarded the Certificate of Environmental Management System and all its subsidiaries passed the supervision and audit of the environmental management system and hold the certificates . HGTECH reviews the implementation of environmental protection related regulations and the operation of environmental protection facilities of each subsidiary from time to time and corrects behaviors that are not in line with the company’ s environmental protec-tion policy then proposes rectification measures. HGTECH regularly environmentally monitors the ‘three wastes’ on key emission enterprises and make sure that the annual environmental monitoring results falls within the requirements of relevant laws and regulations. HGTECH has built an energy statistics system and power consump-tion monitoring platform which can conduct monthly statistical analysis to improve the secondary measurement of water and electricity. The Subsidiaries like HGGaoLi and HGImage both have obtained pollutant discharge permits. For more information about environmental management performance please refer to “Key Performance Table - Table 2” .HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 47

HGGAOLI: CDP disclosed a Supplier Engagement Assessment (SEA) overall score of A-. From January to December

Environmental Compliance Management Cases: 2025 the company's rooftop distributed photovoltaic power generation reached 4092800 kWh. In coordination with

the third-party verification agency designated by the Provincial Department of Ecology and Environment the compa-

ny completed the inventory of its 2024 corporate carbon emissions data which amounted to 25855.6 tCO?. An

1.HGGAOLI has formulated the "Environmental Occupational Health and Safety Management Manual"

appeal was filed to change the carbon allowance calculation method from the historical method to the historical

which clearly defines its environmental management policy. The Company commits to establishing and

intensity method. As a result the allowance compliance gap was upgraded to a surplus of 3542 tons saving approxi-

maintaining an effective environmental management system continuously improving its environmental perfor-

mately RMB 60000 in costs and reducing compliance expenses to RMB 123899.mance and promoting the harmonious development between the enterprise and the environment. Concurrently

it actively promotes and educates on its environmental policy and objectives to enhance the environmental

awareness and capabilities of all employees. During the reporting period the Company conducted environmen-

tal protection knowledge training and hazardous waste classification management training covering multiple Green Products: Responding to the "Dual Carbon" Goals

departments. HGGAOLI has successfully met the requirements of the annual surveillance audit for the HGTECH actively responds to the "Dual Carbon" goals by improving processes upgrading production equip-

GB/T24001-2016/ISO14001:2015 environmental management system standard and has obtained the corre- ment building green factories researching and providing lightweight and intelligent green products and services

sponding certification. and refining and strengthening management. These efforts support the green transformation and upgrading of

the manufacturing industry empower green and low-carbon development and contribute to the construction of

2.HGGENUINE: a Beautiful China.

System Name Certification Name Certifying Body Certification Date Validity Period

ISO14001:2015 Environmental Management System Intertek 2025/6/24 2028/7/8

ISO45001:2018 Occupational Health and Safety Management System Intertek 2025/6/24 2028/7/8

ESD S20.20:2021 Electrostatic Discharge Control System TUV Rheinland 2024/12/27 2025/12/26

ISO5001:2018 Energy Management System Certification Zhongqi Huaxin 2025/4/24 2028/4/23

ISO14064-1 2024 Greenhouse Gas Verification Statement Renfeng Certification 2025 /

ISO14067?2018 Product Carbon Footprint Verification TUV NORD 2024 /

3.HGIMAGE

After years of sustained environmental investment in October 2025 Jingmen Image was officially upgraded Tire Mold On-Line Intelligent Laser Cleaning Equipment

from an Environmental Level D enterprise in the packaging and printing industry to a Level B perfor-

mance-leading enterprise. The company has achieved an advanced industry level in environmental governance Laser cleaning technology utilizes a laser with narrow pulse width and high power density on the surface of the

process equipment and emission control effectively enhancing its green development competitiveness and object to be cleaned. Through the combined mechanisms of rapid vibration vaporization decomposition and

laying a solid foundation for compliant operations and high-quality development. plasma stripping contaminants rust or coatings on the surface are instantly evaporated and stripped away

achieving surface cleaning. The advantages of laser cleaning including being non-contact environmentally

friendly efficient and precise and causing no damage to the substrate make its application scenarios versatile.Addressing Climate Change

HGLASER:Conducted a self-evaluation based on the newly released national standard "Green Factory Evaluation

General Principle" (GB/T36132-2025). Following a comprehensive assessment the enterprise demonstrated excel-

lent performance in energy consumption resource utilization pollutant emissions and environmental management

successfully passing the annual evaluation and maintaining its qualification in the dynamic green factory management

database. In terms of energy low-carbonization the enterprise continuously optimized its energy structure and

actively promoted energy-saving technologies. Currently the park's energy consumption is singular relying solely on

electricity. Through enhanced energy management the company effectively reduced its carbon emission intensity

during production processes. By the end of 2025 the park initiated a photovoltaic power generation project laying

photovoltaic modules covering an area of 13000 square meters. Regarding resource efficiency the enterprise imple-

mented a customized batch procurement model precisely ordering standard components according to production

plans effectively reducing inventory and material waste. Simultaneously relying on information systems such as ERP

and MES it achieved refined control throughout the entire process optimized production scheduling and material

allocation and significantly improved the utilization rate of raw materials.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 49

EV Battery Insulation Film Intelligent Laser Cleaning Equipment Smart Factories

Used for the automated cleaning of insulation film on reworked battery cells replacing the existing manual cleaning To date HGTECH's intelligent manufacturing business segment serves clients across key sectors of the national econ-

process. omy including shipbuilding & marine engineering energy equipment construction machinery steel structures and new

energy materials. It has provided over 700 enterprises with intelligent manufacturing-related services covering top-lev-

el design planning production line planning and implementation warehousing and logistics integration and digital

The battery cell is placed at the cleaning station using a mechanical structure or robot. By rotating the cell and moving

products. The company has received numerous national honors including the development of 12 billion-yuan-level

the galvanometer full-scale laser cleaning of the cell is achieved.smart factories and the creation of industry-first applications for smart factories in multiple sectors. This has facilitat-

Reduces Harmful Dust Absorption: A line-scanning laser is used to remove the insulation film from the battery cell. ed the digital and intelligent transformation and upgrading of numerous smart factories including those at China

While removing the film the generated harmful dust is simultaneously absorbed thereby preventing explosions and Merchants Industry (Weihai) Shipyard Wison New Energies Hubei Guangji New Energy Shipbuilding Jining Energy New

enabling direct exhaust. Energy Shipbuilding Jiangnan Shipyard Zoomlion Taiyuan Heavy Industry Weichai Lovol Shunte Electric and Jiangsu

Huachen.In 2025 HGTECH continued to deeply cultivate the shipbuilding industry and energy equipment sector successfully

signing projects such as the "China Merchants Industry (Weihai) Shipyard Digital Green Smart Factory" the "Wison

Clean Energy Startup Base Intelligent Material Preparation Line" and the "Hubei Provincial Intelligent New Energy Ship

Industrial Park Joint Workshop Intelligent Production Line." In December 2025 multiple projects for the "Jining New

Energy Shipbuilding Smart Factory" successfully passed acceptance receiving high recognition and praise from the

client. This project was selected for the 2025 Shandong Provincial Advanced-Level (provincial) Smart Factory list. The

project innovatively applied independently developed high-end laser cutting equipment laser hybrid welding equipment

and full-format multi-head marking and coding equipment. It adopted multiple self-developed new-generation infor-

mation technologies including intelligent generation and recognition technology for cutting lines intelligent hybrid

nesting technology weak feature high-precision recognition and positioning technology an AI + vision intelligent

sorting system a yard management system an intelligent central control system and a digital twin system. This

achieved intelligence and reduced manpower across the entire process from steel warehouse entry/exit yard manage-

ment loading/unloading marking cutting sorting logistics transfer plate frame assembly welding sub-assembly

fitting and welding to longitudinal member fitting and welding. The sub-assembly fitting and welding production line

Laser Intelligent Manufacturing Series Solutions utilizes automatic fitting and tack welding technology overcoming industry technical barriers and obtaining an invention

for the Hydrogen Energy Industry patent (ZL 202411631986.2) achieving a welding pass rate of up to 98%. After project completion the production

efficiency of hull components increased by 50% overall design efficiency improved by 10% operating costs were

HGLASER presents a comprehensive "laser + automation" factory solution for the entire hydrogen industry chain reduced by 20% the first-pass yield rate of products increased to 95% energy consumption per unit of output value

directly supporting the dual carbon goals and the high-quality development of the green hydrogen industry. decreased by 15% the CNC rate of key equipment exceeded 95% the data acquisition rate reached over 98% and

Fuel cells are core equipment for zero-carbon hydrogen utilization efficiently converting green hydrogen into electricity the self-developed rate of hardware and software for the intelligent system solution exceeded 95%. The technological

with no combustion and zero emissions throughout the process. This supports deep decarbonization in transportation process level is ranked first in the domestic inland new energy vessel manufacturing industry promoting the standard-

industry and distributed power generation significantly reducing end-terminal carbon emissions. ized development industrial integration and large-scale application of inland new energy vessels.Alkaline electrolyzers are key carriers for green hydrogen production converting renewable electricity such as wind and

solar power into green hydrogen. This enables large-scale storage and cross-regional allocation of clean energy In the field of new energy equipment HGTECH successfully signed projects such as the "Jiangsu Huachen New Energy

replacing fossil fuel-based hydrogen production at the source and driving the low-carbon transformation of the energy Power Equipment Digital Intelligence Factory Project" and the "Ningbo Aoneng Electric Intelligent Welding Production

structure. Line Project." Integrating the production process of new energy oil-immersed transformers HGTECH built an intelli-

gent production line for Jiangsu Huachen encompassing cutting and blanking automated welding and warehousing

logistics. The main products processed are new energy oil tanks achieving a full-process operation from raw material

These two high-end production lines leverage laser intelligent manufacturing to ensure high performance high reliabil-

warehousing – cutting and blanking – automatic sorting – AGV transfer – automated welding – painting. Upon

ity and mass production of equipment accelerating the closed-loop implementation of green hydrogen "produc- completion it is expected to produce 30 units per day with an automation rate of over 80% and equipment utilization

tion-storage-transportation-utilization". They provide solid equipment support for global carbon neutrality and the rate of over 85%. This solves multiple problems in the oil tank production process that severely restrict enterprise

development of the green hydrogen industry. development such as low welding efficiency difficult production scheduling and information opacity.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 51

Application of Automotive Lightweighting

Laser + Intelligent

3D Five-Axis Laser Cutting Intelligent Equipment

Manufacturing Pioneers the Automotive Industry’s New Journey Toward Low-Carbon Transition

Specially developed for automotive hot-formed components this intelligent laser processing system effortlessly cuts

Driven by “dual carbon goals” new energy vehicles are entrusted as a historic mission of our era. As an through ultra-high-strength steel up to 2000 MPa. It enables precision thinning of hot-formed high-strength steel sheets

advanced production tool laser is widely used in the design process and production of new energy achieving 20% weight reduction per component—making automotive materials thinner lighter yet harder and stronger.vehicles etc. HGTECH actively explores the typical application of advanced laser technology in the manu-

facturing of new energy vehicles and assisting the traditional automotive industry in the upgrading of

intelligent manufacturing. PTC Heater

Typically the weight of a single PTC heater is around

2kg. By increasing the power density of the heating

pack the heater’ s volume can be reduced by 10% Integrated Laser Welding Equipment

while maintaining the same power output enabling an

optimal balance of high performance and light weight. for A utomotive Door Rings

Compared with the traditional stamping-welding tech-

nology the application of the integrated double door

New Energy Battery Pack Module ring laser welding thermoforming solution reduces the

and Battery Box (Tray) weight of the door ring parts by about 10k increases

the material utilization rate to 71.9% and improves the

Welding automation production line replaces steel with collision safety performance of the local area which is

aluminum to achieve “weight reduction” of the body. an important path for the lightweighting of the steel

The unique welding anti-deformation technology of parts of the body-in-white to be realized.HGTECH can control the welding seam precision at

1mm which can be applied to all-aluminum battery

pack shells. Also it can reduce the weight of the battery

pack by about 26.7% bringing a new choice of process Solar/Light/Rain/Defogging Sensor

with lighter quality and higher strength.It is a multi-functional integrated sensor that combines

solar rain temperature & humidity monitoring and HUD

Body-in-White Roof Panel Laser Welding functions into a compact unit. It compacts multiple separate sensors into a single unit that weights less

Automation Production Line than 20g enabling intelligent bus control and functional

The first all-aluminum body laser welding production integration.line independently built by HGTECH reduces the edge

width of parts and connecting auxiliary materials by

about 20% and further reduces the weight of the

body-in-white and still maintains the stability of the

equipment welding speed and strength.Tire Mold Laser Cleaning Intelligent Equipment

Low-carbon Automation High-end Laser Equipment to Help Tire Industry Transformation

Pneumatic tires are the “feet” of automobiles. As an indispensable component in automotive manufactur-

Automotive Lightweighting ing pneumatic tires are vital to ensuring safety water drainage grip and driving comfort during use—all

of which depend on regular cleaning of tire molds . However traditional tire mold cleaning methods suffer

from low efficiency high energy consumption and significant pollution failing to meet modern tire produc-

On the basis of keeping strength and safety automotive lightweighting is to reduce the overall vehicle tion demands for energy savings emission reduction and low-carbon sustainability. Laser cleaning tech-

mass as much as possible improve the power performance of automotive and to reduce fuel consumption. nology non-contact abrasion-free and eco-friendly solution will replace the traditional cleaning process

HGTECH empowers the automotive industry transformation with “Laser + Intelligent Manufacturing”. The inevitably.evolution toward automotive lightweighting—encompassing advanced material processing structural and

modular design methodologies and next-generation joining technologies—demands parallel innovations HGTECH independently researches and develops “Tire Mold Laser Cleaning Intelligent Equipment”.HGTECH has overcome the laser cleaning head vision guidance technology and many other core compo-

in manufacturing processes. HGTECH drives this industrial transformation through its “Laser + Intelligent nents and processes fearless of high temperature “baking test”. The equipment can make the dirt sweptManufacturing” solutions so laser cutting and welding technologies with their unique advantages in away if “not dismantle the mold” also can clean a pair of tire molds online at 45 minutes. The equipmentefficiency precision flexibility and non-contact processing have emerged as critical enablers of automo- can effectively solve those tough problems such as “long standby time repeated disassembly mold weartive lightweighting. and tear non-complete cleaning environmental pollution high energy consumption” so as to reduce the

downtime of vulcanizer improve the production efficiency and tire quality. The equipment brings a new era

of “low-carbon automated” tire mold cleaning.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 53

Environmental Protection Investment

Waste gas

In 2025 the enterprises under HGTECH have cumulatively invested over RMB 10665400 in environmental gover-

nance mainly for the disposal of hazardous waste the construction and operation and maintenance of waste gas HGGAOLI : The waste gas

treatment facilities the improvement of on-site environmental facilities environmental monitoring regular monitoring treatment facility has been

of wastewater and waste carbon emission compliance the formulation of environmental contingency plans environ- upgraded to a secondary acti-

mental impact assessment and acceptance and other environmental protection expenditures . The affiliated compa- vated ca rbon adsorp t ion

nies have paid environmental protection taxes in accordance with the law. device in accordance with the

"National Pollution Prevention

and Control Technology Guid-

ance Directory (2024 Edition

Waste Disposal Restr icted and El iminated Categories)" (Draft for Com-

ments).HGTECH strictly abides by the Environmental Protection Law of the People’s Republic of China Air Pollution Preven-

tion and Control Law of the People’s Republic of China Solid Waste Pollution Prevention and Control Law of the

People’s Republic of China Water Pollution Prevention and Control Law of the People’s Republic of China and other

laws and regulations to carry out pollutant management. HGTECH has formulated documents on sustainable devel-

opment such as Carbon Emission Management System Prevention and Control of Environmental Pollution Energy

Management Procedures Clean Production Management Procedures etc. For the wastewater waste gas hazardous

wastes and general industrial solid wastes generated in the course of production and operation the company has

formulated an effective internal management system monitored all kinds of emission indexes in accordance with the 废气在线监测

national and regional emission standards and carried out strict emission management making sure that all waste

disposal is Compliance treatment and discharge. Clean production is throughout the entire process of project plan-

ning and product planning giving priority to the use of clean production technologies processes and equipment with

high resource utilization and low pollutant generation and giving priority to the selection of non-toxic non-hazard-

ous easy to degrade or easy to recycle solutions. Through the reduction and control of environmentally hazardous Hazardous Waste

substances promote green design and production effectively preventing environmental pollution. Enhance energy

performance and reduce greenhouse gas emissions by purchasing energy-saving equipment and products improving HGIMAGE and its subsidiaries have estab-

processes and conducting energy-saving activities. lished and strictly implemented the "Manage-

ment System for the Collection Storage and

Transfer of Hazardous Waste" and the

"Emergency Plan for Environmental Inci-

Management system: Wastewater Discharge Management Standards.Waste Water dents." They have safely disposed of 183.07 Discharge category: domestic sewage production wastewater. tons of hazardous waste including harmful

Pollution Prevention Measures: regular inspection of sewage discharge pipelines; regular sampling and chemical substances. Additionally they have

monitoring; environmental pollution insurance coverage; establish a chemical wastewater depository;

recycling and disposal by a qualified treatment center. conducted emergency drills for environmental

incidents such as chemical leaks focusing on

key scenarios like leak disposal and emer-

Waste Gas Management System: Management Measures for Exhaust Gases Norms for Air Emissions gency rescue. These drills standardize emer-

Management. gency operating procedures and further

Emission categories: volatile gases from chemical substances exhaust gases from cutting and welding strengthen employees' safety awareness and

processes etc. prevention capabilities.Pollution prevention and control measures: open fume extraction equipment during production;

Management System: Waste Management Regulations Waste and Discarded Materials Management Regulations.Hazardous Discharge categories: mercury-containing batteries waste mixed hardware waste electronic compo-

Waste Case Study on the Management of the Three Wastesnents waste activated carbon chemicals etc.Pollution prevention and control measures: set up corresponding waste storage areas and garbage (Wastewater Waste Gas Industrial Residue)

containers and mark them; use chemical crates when turn over or transport corrosive chemical bottles. In accordance with the self-monitoring requirements of its pollutant discharge permit HGGAOLI commissioned a

third-party institution Hubei Lanke Testing Technology Engineering Co. Ltd. to conduct environmental testing in

Management System: Waste Management Regulation Waste and Waste Management Regulations. 2025. Tests were carried out on the company's wastewater waste gas and plant boundary noise. The test

General Emission categories: waste cartons waste metals waste glass products waste plastics etc. results complied with the relevant standards. The testing frequency included organized waste gas twice a year

Industrial Waste Pollution prevention and control measures: for recyclable waste: sold to waste collectors or direct domestic wastewater and unorganized waste gas once a year and plant boundary noise four times a year.recycling on its own; for non-recyclable waste: managed through a sanitation service agreement

between the property management company and local municipal sanitation department ensuring

centralized processing in compliance with environmental regulations.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 55

Pollutant Emission Management Electricity Consumption of Production and Power Equipment

According to centralized production each department should avoid equipment empty run and follow the three optimal

In compliance with national environmental protection policies HGGAOLI a wholly-owned subsidiary of HGTECH has estab- energy - saving status labels for equipment startup frequency in the Equipment Management Procedures (i.e. use upon

lished a comprehensive set of sustainable development documents including the "Carbon Emission Management System" startup intermittent shutdown and keep running for long - term use) to determine when to switch on or off. When the

"Management System for the Storage and Disposal of Hazardous Waste" "Noise Control Management System" "Regulations equipment shuts down or not in use it should be turned off and the power supply should be cut off.on Designated Scrapping of Waste in the Industrial Park" "Management System for Precursor (Highly Toxic) and Explosive Power equipment: According to the temperature and humidity of the workshop refrigeration mainframe boiler humidifi-

Chemicals" and the "Energy Saving and Consumption Reduction Management System." These systems enable the Company er dehumidifier wind cabinet cooling water pump chilled water pump shall be adjusted to the most energy- saving way.to analyze predict and assess potential impacts on the ecological environment in advance.Air Conditioning Management

The Company continuously increases investment in energy conservation and emission reduction phasing out outdated equip- During summer cooling the temperature should not be set below 26° C; during winter heating the temperature should

ment to ensure that wastewater waste gas noise and solid waste are discharged in compliance with standards. Concurrently not exceed 18 ° C. When the air - conditioner turns on the doors and windows connected with outdoor area should be

it deeply promotes lean management improves processes enhances the efficiency of "Three Wastes" (wastewater waste kept closed.The water system of the central air conditioner should be cleaned once a year improving heat exchange

gas industrial residue) treatment and energy utilization and actively works towards creating a green factory. efficiency and reducing operational load.Thanks to its rigorous management HGGAOLI successfully changed its pollutant discharge permit to simplified management.In 2025 it passed the recertification audit for its environmental management system and holds the corresponding certificate.The Company achieved zero violations in pollutant emissions throughout the year with no minor injuries or more severe

accidents nor any environmental incidents. This has strongly promoted the sustainable development of the Company the Water Consumption

economy and society setting a benchmark for green development in the industry. According to the water consumption plan issued by the Gases Usage

Municipal Water Conservation Office the company strictly controlls the

Rational Utilization of Resources clean water water consumption and sewage discharge.Nitrogen air pressure gas etc.All subsidiary equipment manage-

Each subsidiary equipment management department is responsible for ment departments must perform

inspecting water supply pipe network timely discovering and repairing regular maintenance on gas supply

HGTECH has always been an active responder to environmental protection adhering to a two-way management model of leakage faults and preventing leakage and water waste. Water usage in the systems accord ing to the Gas

"technological transformation and management." It has formulated management systems such as the "Energy Management restrooms should be paid special attention. Close the valve in time after Supply Equipment Maintenance

System" and the "Management Specification for Resource and Energy Conservation" to achieve the energy management flushing the toilet. Only turn on the faucet halfway when washing hands and Work Instructions.goals of "refined energy management scientific energy metering responsible energy conservation and visualized on-site turn it off promptly after use. Each gas-consuming department

management." These efforts aim to reduce the company's consumption of resources and energy improve the utilization rate should adjust the gas pressure range

of resources and energy minimize waste lower costs fully realize the scientific rational and effective use of resources and and the requirements of the produc-

tion process to the minimum pres-

energy and enhance the company's modernized level of energy management. Oil Usage sure to reduce the flow rate and

save gas.During the operation of various types of equipment attention

Circular Economy According to the requirements of should be paid to lubricating materials used (such as the lubricating oil for equipment and process all gas-us-

air compressors) to avoid waste. The company’s shuttle buses are electric ing departments do not use nitrogen

vehicles which helps reduce greenhouse gas emissions. gas if they can use air pressure gas

Hubei Image following the principles of recycling and reuse as well as cost reduction and waste minimization continuously When maintaining equipment and facilities each department should pay and do not use high-purity nitrogen

carries out technological transformations and process optimizations. This includes the secondary reuse of stripped PET film. attention to the amount of lubricant to avoid excessive application and if they can use general nitrogen so

The annual recycling and reuse of PET film amounts to 81 tons further effectively reducing the generation of solid waste. waste and leakage to the ground polluting the environment. as to reduce the cost of gas source.Resource Management and Energy Saving Measures Office supplies

The company actively promotes office automation and networking Raw materials

tries to use electronic documents and electronic mailboxes in work and advocates

Electricity Consumption revising manuscripts on electronic media to reduce paper consumption. The company purchases main raw

A designated person should be assigned to manage the daily office supplies of and auxiliary materials according to

Lighting Office Electricity each department and the system for requisitioning office supplies should be

strictly implemented; except for the confidential information of the company the the amount of usage and existing

Office area: Use natural light as the main lighting and turn on 2/3 (on cloudy days) or 1/3 (on sunny days) of the paper materials should be utilized on both sides. stock.lighting during the day. Streamline documents. For matters that do not necessarily require issue official The use of raw and auxiliary mate-

Corridors locker rooms restrooms: natural light is the main source of illumination during the day; turn on 1/2 of the documents for deployment try to deploy them through meetings as much as rials should strictly adhere to the

lights on cloudy days when there is insufficient light. possible. For matters that truly require the issuance of official documents the principle of “first in first out” to

Roads in the factory: keep lighting off during the day and keep lighting on at night. printing quantity should be accurately calculated to avoid reprinting and excessive prevent from ineffective or deteri-

Each production workshop:keep lighting on according to the workforce and work part of the lights; in non-work printing.Economically use cleaning and sanitation tools. Mops rags waste paper baskets orating.areas only open a (or a row of) lights; during non-working hours only part of the lights (a or a row) to ensure that should be properly stored to extend the service life.the channel lighting to facilitate personnel’s movement .Office appliances (such as: computers printers water dispensers etc.) must follow:turn on only when needed shut

down immediately after use; computer monitors are automatically sleep after 3 minutes of inactivity; computer moni- In addition the company implements lean production supports agile management through informatization and digital tools.tors are manually power off when leaving workstations. unplug power cords at end of day. The company continues to improve the turnover efficiency of products and the utilization rate of the site which promotes

quality improvement and reduces waste effectively reduces production costs and shortens the product development and

production cycle.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report

Environmental Protection Measures

at Overseas Bases

Since its establishment the Thailand base has strictly complied with relevant Thai laws and regulations continuously

improving its environmental occupational health and safety management system. It has formulated and implemented a

series of policy documents covering sustainable development and environmental protection including but not limited to

multiple sustainable development management systems such as the "Management System for the Storage and Disposal of

Hazardous Waste" "Noise Control Management System" "Regulations on Designated Scrapping of Waste in the Industrial

Park" "Management System for Precursor (Highly Toxic) and Explosive Hazardous Chemicals" "Energy Saving and

Consumption Reduction Management System" "Safety Inspection Operating Procedures" and "Wastewater Discharge

Management Specifications." The base actively integrates legal and regulatory requirements into its daily operations

continuously optimizes its own strategies and promotes the achievement of sustainable development goals making

positive contributions to the local society and environment. Simultaneously the base actively implements environmental

protection and occupational health and safety management measures continuously conducts wastewater waste gas and

noise testing transfers hazardous waste in compliance with laws and regulations and regularly organizes occupational

health check-ups ensuring that the entire production and operation process meets environmental protection and safety

standards.In 2025 the factory has obtained certification for ISO 14001:2015 ISO 45001:2018 ISO 9001:2015 and ESD S20.20:2021

management systems. It has currently initiated work on ISO 14064 system certification ensuring that the management

system operates in a standardized and effective manner.Through strict implementation of relevant laws regulations and

systems the factory achieved zero violations in pollutant emissions throughout the year with no environmental incidents

or personnel casualties demonstrating the company's outstanding achievements in environmental protection and safety

management.To build a "data-driven green factory" the Thailand base has deployed a factory online management system

that integrates intelligent temperature and humidity control power consumption data monitoring and safe refrigeration for

workshop glue freezers. This system represents a core pathway for the company to achieve a triple value leap in Environ-

ment (E) Society (S) and Governance (G). It is not merely an isolated functional module but an infrastructure for

constructing a "data-driven green factory" directly responding to international ESG rating standards and Chinese regula-

tory requirements thereby forming a quantifiable auditable and financiable sustainable competitive advantage. We Our Employees

ESG Implementation Technical Corresponding Environmental/Social/

Dimension Measures System Support International Standards Governance Value and Social Responsibility

Achieve real-time monitor- GRI 302-1 (Energy consumption), Reduce annual energy consumptionEnvironment ing of the plant's energy Power Energy GRI 302-2 (Energy intensity) per unit of output value decrease

(E) flow and energy efficiency Monitoring System CDP C8 (Operational efficiency Scope 2 carbon emissions (CO?e)

optimization improvement) supporting the net-zero pathway.Predictive maintenance of

Environment Employees can find a platform for growth and development. The company compressed air systems to Gas Automatic SASB MFG-EN-1a (Energy efficiency)

(E) reduce leakage and no-load Control Retrofit GRI 305-3 (Greenhouse Reduce indirect emissions.System gas emissions) provides a diverse and flexible training system to assist employees in energy consumption

continuously improving themselves and achieving their career goals. At the

Real-time leak monitoring

Environment and automatic linkage to Leak Detection and ?CDP Water Security Q4.2 (Leak control)

(E) prevent water resource Monitoring System GRI 306-1 (Water and effluents) Reduce resource waste.

same time we value the physical and mental health of our employees and

pollution and waste strive to create a friendly and harmonious working environment so that

Continuous monitoring of SASB MFG-EN-3

Environment particle concentration in Airborne Particle (Hazardous substance control) Reduce product scrap rate employees can feel the company's care while working.

(E) c leanrooms to ensure Counter System ISO 14644-1 (Cleanroom standards) minimizing resource waste.

pollution-free production

Precise temperature con- Glue freezer temperature control devia-Power Distribution ?GRI 305-4(Emissions and releases) tion ≤ ±1 ° C reducing annual VOC emis-

Environment trol for power distribution Cabinet Temperature Thailand Ministry of Industry sions by 0.9–1.3 tons complying with cabinets and glue freezers cross-border application requirements of

(E) to reduce VOC emissions Safety Detection Standard B.E. 2563 the "Measures for the Administration of System (VOCs management) Corporate Environmental Information and electrical fire risks Disclosure in Accordance with the Law."

Build a unified data middle

Governance platform to achieve central- Automation System ?IFRS S2 (Climate-related

(G) ized management of produc- Upgrade and financial disclosures) Support third-party ESG audits.tion energy consumption Integration Platform SASB MFG-GV-1(Data governance)

and equipment data

Standardize hierarchical Alarm response time reduced Automation System

Governance from 60 minutes to 20 minutes alarm mechanisms and Upgrade and TCFD Governance

(G) e m e rg e n c y re s p o n s e Integration Platform (Risk management structure)

enhancing operational resilience

and reducing the probability of

procedures environmental incidents.Remote monitoring reduces Reduce the frequency of manual

Society the frequency of manual All six major SASB MFG-SO-1 inspections in high-risk areas by

(S) inspections and improves (Occupational health and safety) 50% decreasing exposure risks systems

operational safety to high temperatures high pres-sure and chemicals.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 59

Employee Rights and Benefits

Additionally the company organizes symposiums for different employees:“Angel Interview” for new employees before

their regularization; “Falcon Symposium” for structural talents; “Youth Symposium” for school recruits;“TechnicalEmployee Employment and Basic Rights Symposium”for R&D personnel; “Engineering Master and Doctor Symposium”for engineering and technical experts;

“Expert Symposium” for technical experts.The company gain multi-dimensional understandings of employees’ evalu-

The company strictly complies with Labor Law of the People’s Republic of China Labor Contract Law of the People’s ations of the company’s management as well as their suggestions. The company actively responds to the demands of

Republic of China the Trade Union Law of the People’s Republic of China and Personal Information Protection Law employees strengthens the sense of belonging of employees and improves their satisfaction.of the People’s Republic of China as well as relevant laws and regulations applicable in overseas areas. In combination

with the actual situation the company has formulated a complete human resources management system and relevant

regulations. Employee Benefits In accordance with relevant national laws and regulations the company has formulated

management systems such as the Interim Provisions on Unified Welfare Management to further

The company adheres to the principle of equal employment and opposes all forms of discriminatory behaviors resulted optimize the employee welfare system. Also the company provides employees with diverse

from differences such as gender age region educational background religious belief nationality race and disability welfare guarantees including statutory benefits health benefits living benefits consolation

status. The company devotes itself to striving to create a diverse and inclusive working environment. At the same time benefits and growth benefits.the company has established a fair just and open mechanism for selecting and employing personnel. Use of child

labor forced labor overtime work harassment and abuse are definitely prohibited and HGTECH firmly safeguards Consolation Benefits Statutory Benefits Growth Benefits

the legitimate rights and interests of employees. Condolences to employees in difficult situations Statutory holidays Learning allowances

Condolences to retired employees Marriage leave Remuneration for in-house trainers

Condolences to sick employees Maternity leave and paternity leave Allowances for in-house trainers

During the reporting period the labor contract signing rate was 100% and the social insurance payment rate for Condolences for the death of employees' near kin etc. Annual leave etc. Evaluation for excellence and commendation

employees under the labor contract system was also 100%. There was no use of child labor or forced labor. For more

information on employee employment performance please refer to “Key Performance Table - Table 5”. Health Benefits Living Benefits

Commuting shuttle buses

Annual physical examination

Canteen services and meal allowances

Supplementary commercial insurance

Telephone bill subsidies

Employees Rights & Management Methods Team-building activities and festival benefits etc.Recruitment: The company has formulated management systems such as the Interim Provisions on

Recruitment Management and the Management Measures for Implementing the Falcon Plan. Adhering

to the principles of "open recruitment fair competition scientific evaluation and selection of the best

candidates" the company conducts recruitment activities standardizes the employment procedures Employee Care

protects employees’ privacy and information security. The company firmly prohibits employment of

child labor and resists all forms of forced labor.Recruitment Dismissal: The company conducts dismissal-related work with employees in accordance with local The Company adheres to the working philosophy of "Work happily live healthily" and is

and Dismissal committed to creating a comfortable working atmosphere for its employees. It actively laws and regulations. carries out various employee care and appreciation activities to foster a warm and

harmonious workplace environment.The Company consistently cares for the health and well-being of its employees and

Salary: The company adheres to equal pay for equal work continuously optimizes the system their families offering support to those facing financial difficulties. During the reporting period the Company provided a total of RMB 154500 in assistance to employees in

management system and provides employees with competitive salary. A precise incentive mechanism need. The Company continues to deepen and improve its measures for the employment

is set up according to different job categories enabling those value- contributors to have a greater and support of persons with disabilities. HGTECH Gaolin was recognized as a National

sense of fulfillment and fully stimulating employees’ potential. Base for the Proportional Employment of Persons with Disabilities. It has installed

Promotion: The company implements the principles of open fair and just promotion management. accessible facilities for employees with disabilities in buildings such as canteens and

There are four basic principles in managers selection: offices and organized a sign language lecture event on the 35th National Day of Assist-

·having both ability and integrity and integrity taking precedence; ing Persons with Disabilities.Salary and ·focusing on performance and conducting multi-position rotations;

Promotion ·competing for employee with open procedures keep flexible for both upward and downward mobility;

·giving more chances to young cadres with professional expertise.Working Hours: The company has formulated management systems to ensure that working

hours in different locations comply with local regulations. Different shifts are set according to

production needs and employees’ rights and interests are protected as stipulated.Overtime: The company advocates "Happy Work Healthy Life" and opposes all forms of

perfunctory overtime. There is an application for overtime work in advance if necessary. The

company aims to continuously improve work efficiency by enhancing employees’ professional

qualities optimizing processes promoting informatization and carrying out production automa-

Working Hours tion transformations enabling employees to strike a good balance between work and life.Overtime Vacation: In accordance with local laws and regional policies of the working locations the

and Vacation company provides employees with paid annual leave marriage leave maternity leave for female

employees nursing leave etc.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 61

Employee Development and Training

Talent Echelon On June 28 2022 General Secretary Xi Jinping emphasized that technological

Construction innovation depends on investment and talent during his inspection to HGTECH. Academician Online Mobile Classroom for Salesman Executive Charging Workshop New Employee TrainingHGTECH has always holds the concept of “the future of enterprise lies in IPD Wolf Class Product Line General Manager Lean Officeinnovation the key to innovation lies in investment and the focus of investment Technical Night Talk Industry Show Training Camp Space Swapis talent”. Based on the principle of “introducing and cultivating at the same time and incentivizing and restraining Engineering Sales Toolkit Elite Class Book Reading Clubsynergistically” HGTECH has set up an employee career development system so as to manage effectively and create Laser First Classroom Hardening Program Youth Class Xin Xin Xiangrong

a favorable environment for the growth of talents.As a high-tech enterprise HGTECH advocates that “To be a manager who understands technology to be a techni-cal expert who understands management” and always insists on two promotion paths of management and profession.The company prioritizes character core competencies and primary strengths in talent selection embracing the

following principles: No perfectionism – Valuing growth potential over flawless track records; Merit-based advance-

ment – Rejecting seniority- driven promotion systems; The company has consistently built the qualification system

regularly gives evaluation of employees which helps employees improve professionalism. In addition the company 1 18

encourages cross-department rotations to develop multi-skilled talent. HR New Employees

Reverse Mentoring Post-95 HR Strategy AI-assisted Music Composition

Employees Born After 1995 AI-assisted PPT AI-assisted Marketing Tools

The Development and Challenges of AI Incremental Strategy & Performance etc.

2 1Sales Mobile Classroom

Youth Class Marketing Personnel

Young employees Company News Overview /

HR Strategy AI-assisted Music Composition Expert Sharing /

AI-assisted PPT AI-assisted Marketing Tools World Cafe /

Incremental Strategy & Performance etc. 1 Business Promotion Exchange

Bajie Program

1 (Jointing Program)Skilled Personnel

Multi-dimensional Lean Lecture Hall /The Company guided by the principle of "maximizing individual potential and

creating value together" adheres to the development philosophy that "every- Academician Online

Digital Factory Implementation Path

Talent Cultivation System 1

one has potential." It innovates talent cultivation methods by actively building a Technology & Management 91 Talent Classroom

three-tier training system comprising the "Young Seedling" "Elite" and "Executive Training" programs. The Company "Design and Control Technology for

High-end Equipment Dynamics" / All Employees

promotes distinctive talent development initiatives such as the "Product Line General Manager Bootcamp" "Sales Mobile 3 3"Beidou and New Quality Produc- Professional Capability Building / Live Courses

Classroom" "Academician Online" the "Jointing Plan" and the "91 Talent Classroom." It explores the establishment of a Elite Class tivity" etc. New Employee Training

reverse mentorship program for employees born after 1995 strengthens the development of a younger management Middle Management Newly Hired Employees

team continuously develops online training methods and comprehensively promotes the OPE Micro-College. By Market-oriented / Company Profile and Corporate Culture

integrating online and offline training the Company encourages employees to learn independently and empower them- client-centric /

selves fostering a learning organization where everyone wants to learn can learn anywhere and can learn anytime. Intelligent Manufacturing Overview

Simultaneously leveraging the construction of the Central Research Institute the cultivation of outstanding engineers etc.and the training of master's and doctoral engineering students it forms a tripartite collaboration model involving govern- 3

ment universities and enterprises. 4 Executive Charging Station 2025

AI Training Senior Management Training

All Employees Company Executive Empowerment /

New Trends and Business Transformation in Artificial Product Line Experience Sharing / Projects

Industry Expert Lecture "Organiza-

Offline Training Training Attendances Average Training HoursPer Person Micro Classes Created

Intelligence from the Perspective of DeepSeek

The Second Half of Large Models - Inspirations and tional Management Psychology" /

Reflections from DeepSeek "Exploring Quality Value Creating partially11200 153000 15.5 341 Innovation Management Enhancement for Enterprises in New Quality Competitiveness"

the AIGC Era

Sessions Person hour 2Class025 AI Programming Assisting Software DevelopmentHGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 63

57

Main Incentive Measures

Employee Promotion and IncentivesThe company advocates “let value contributors have more sense of achievements let value contributors stand in thecenter of the stage” establish the precise incentive management system make smaller accounting unit designs more

attractive material incentive and spiritual incentives such as annual salary assessment for managers five firewalls for

management personnel regularly conduct performance assessment openly and fairly every year constantly update the

method of selecting and appointing managers integrate the performance appraisal into job promotion which effec-

tively identifies outstanding talents and realizes precise incentives. At the same time according to employees’ willing

and needs career development the company improves the qualification system internal transfer internal competition

exchange of space and other mechanisms. Besides the company gives full play to the leading role of independent

evaluation as to accelerate the growth of employees.Occupational Health and Safety

Company Performance Management Model

Work Safety In terms of work safety the company strictly implements relevant laws and

regulations such as the Work Safety Law and the Fire Protection Law

adhering to the safety policy of "Safety First Prevention Focused Com-

prehensive Management". Guided by the principles of "full coverage zero

tolerance and practical results" the company reinforces the primary

responsibility for work safety at all levels and clearly defines the division of

duties. It has established and released management systems including the

Accident Management System Ten Safety Prohibitions Work Safety

Education and Training and Management of Labor Protection Supplies to

standardize work safety management processes. The company consis-

tently prioritizes the development of employees' safety competencies

building a robust safety culture system. It conducts regular safety training

for all employees organizes annual "Work Safety Reinforcement Month"

activities and continuously monitors the effectiveness of safety training to

enhance employees' safety awareness and competence. This fosters a

safety culture characterized by full participation and shared responsibility.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 65

Emergency Response Fulf illing Social Responsibility

In order to strengthen the ability to respond to emergencies the company has formulated the Emergency Dispos-

Under the guidance of Hubei Province's "Rise of Central China" strategy HGTECH fully leverages its role as a leading

al Plan for Safety Emergency. HGTECH carries out firefighting drills and special emergency drills for key enterprise to drive industrial development. Guided by application scenarios the company strengthens forward-look-

processes by simulating safety accidents rehearsing disposal and rescue actions. To strengthen our safety ing systematic industrial deployment increases investment in innovation and promotes the cross-industry and

production team we have organized all kinds of training related to safety production such as mechanical injury cross-regional integration of innovation resources. It fosters innovative collaboration within the industrial and supply

prevention training first aid training fire safety training and drills traffic safety training forklift use safety train- chains driving the development of industrial clusters by extending supplementing and strengthening the chains. This

ing etc. Besides our daily safety work:monthly inspection annual replacement of firefighting equipmentannual has continuously stimulated the growth of the local electronic and advanced equipment manufacturing industriesinspection of gas body detectors various types of special equipment on schedule “Special Equipment Safety establishing HGTECH as a model for the radiating influence of Wuhan's high-tech industry on surrounding area,Management System” “Temporary Electricity Operation Management System” “Management System of Oper- thereby injecting strong momentum into the coordinated development of the regional economy.ations at Height” “Management System of Fire Operation” etc. HGTECH still have completed: re-filing of the

emergency plan for work safety accidents strengthen limited space management make a numbered record on The company has invested over RMB 300 million to build the HGTECH Opto electronic Information Industry R&D and

Innovation Park in Optics Valley adding new momentum to the development of a world-class optoelectronic infor-

all limited space clarify safety management requirements post warnings in public. mation industry cluster inOptics Valley.Leveraging its intelligent terminal manufacturing base and sensor manufac-

turing base in Xiaogan as well as its anti-counterfeiting packaging industry base in Jingmen the company actively

creates job opportunities for impoverished residents in surrounding areas and continues to develop positions suitable

for persons with disabilities. It was among the first to join the Xiaogan City Caring Enterprise Alliance for Employment

and Entrepreneurship of Persons with Disabilities carrying out initiatives to support persons with disabilities in

various aspects thereby helping to foster a positive social atmosphere of caring for and assisting persons with

disabilities across the whole society.In addition as a major taxpayer HGTECH pays taxes in full and on time providing stable tax support for the local

economy. The company has been honored as one of the "Top Ten Taxpayers" in the East Lake High-tech Zone for

many consecutive years. In recent years HGTECH has deeply explored high-end markets in emerging fields contin-

uously increased R&D investment and built a hub for attracting high-quality talent. Within the new development

paradigm featuring dual circulation where domestic and international markets reinforce each other the company

forges long boards addresses short boards and forges new boards fostering more new technologies new products

and new directions. This injects strong momentum into the sustained growth of the regional economy.HGTECH actively responds to the national call for the integration of industry and education maintaining close ties

with multiple universities to provide students with practical learning opportunities during winter and summer vaca-

tions. Students delve into the front lines of the enterprise actively putting into practice the earnest exhortations of

General SecretaryXi the contemporary youth.Occupational Health

National Sports

To effectively prevent control and eliminate occupational hazards and protect the health and related rights of

employees the company has established systems such as the Occupational Health Management System and

Occupational Health Examination in accordance with the relevant provisions of the Law on the Prevention and In November 2025 HGTECH 2025 Optics Valley Marathon kicked off with great enthusiasm! A total of 13000

Control of Occupational Diseases. Through measures including system standardization training and education runners gathered in Optics Valley to experience the dynamic blend of technology and culture and feel the innova-

and occupational health promotion the company continuously strengthens the management and monitoring of tion and entrepreneurship vitality of the "World Optics Valley".As the title sponsor of the 2025 Optics Valley Mara-

occupational hazard prevention. The main occupational disease risks involved in the company primarily include thon HGTECH delivered professional thoughtful and meticulous event services through elaborate planning and

noise dust chemical substances and laser radiation. careful arrangement striving to provide an outstanding experience for all participants.In daily operations the company provides employees with personal protective equipment (such as earplugs On November 9 the final match of the Wuhan City Football Super League (Urban Group) was held at Wuhan Sports

earmuffs dust-proof masks and anti-toxic masks) installs protective facilities such as dust removal ventilation Center.The East Lake High-Tech Development Zone team sponsored by HGTECH claimed the championship of

and sound insulation walls and urges employees to collect and wear daily labor protection supplies to ensure the inaugural Urban Group with an outstanding record of 8 wins in 8 matches.their health and safety during work.In addition in strict compliance with national occupational health standards such as the Technical Specifications

for Occupational Health Surveillance the company entrusts qualified third-party medical institutions to conduct

occupational health examinations for employees in positions exposed to occupational hazards. Health records

are established and monitored and employees are promptly informed of their occupational health examination

results.HGTECH has obtained the Occupational Health and Safety Management System Certification Certificate. The

company has experienced no incidents affecting social or internal safety and stability no fire safety accidents

no explosion incidents no major or serious public security cases and no unrest incidents seriously endangering

society. It has successfully completed its annual work safety objectives.HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 67

Public Welfare Science Education and Awareness Promotion Key Performance Indicator Table

As the first science and technology exhibition hall in China dedicated

to laser science education laser process applications and intelligent Table 1: Economic Performance

manufacturing the HGTECH Laser Science Museum aims to "popu-

larize laser science knowledge and promote the application of laser Index Unit 2023 2024 2025

technology." It is committed to providing the public with diverse and

enriching science education training and practical activities.Total Assets Ten thousand yuan 1751509.12 2082432.87 2291885.39

Since its completion in June 2020 and its official opening to the Operating Revenue Ten thousand yuan 1030973.30 1170917.55 1435476.05

public in early 2021 the Laser Science and Technology Museum has Belonging to Shareholders of

been conducting educational activities such as the "National Science the ParentCompany Net profit Ten thousand yuan 100747.60 122074.99 147079.47

Tour" and "Public Open Days" for audiences nationwide. Visitors can Basic Earnings per share Yuan per share 1 1.21 1.47

gain an in-depth understanding of the development history applica-

tion fields and future trends of laser technology through various

interactive methods including interactive exhibits guided explana-

tions and demonstrations and hands-on practice.Table 2: Environmental Performance

In 2025 the HGTECH Laser Science and Technology Museum

hosted approximately 1152 visits welcoming around 20000 visitors Index Unit 2025

including industry users the general public and students. It also

provided science education services for 229 groups including

domestic primary and secondary school student groups and students Energy usage management

from key universities offering the public an engaging and informative

scientific experience. Total electricity consumption linear measure 133638986.14

Total natural gas consumption cubic meter 508507

Water resource utilization management

Total water consumption cubic meter 971042

Public Welfare Practices and Rural Revitalization Packaging usage management

Total amount of packaging materials ton 3500.32

HGTECH actively fulfills its social responsibilities by focusing on Recyclable packaging usage ratio % 27%

coordinated regional industrial development science education and Pollutant discharge management

public welfare initiatives. The company consistently integrates social

responsibility into its production operations and management Total greenhouse gas emissions ton 54465.57

giving back to society through concrete actions.Volunteer service reflects the original aspiration while solid action Total amount of domestic sewage discharge ton 626922.5

tempers youth. To enrich extracurricular reading resources for rural Waste management

students and broaden their intellectual horizons the company's

"Young Seedling Program" continues to deepen its public welfare The amount of hazardous waste disposa ton 297.32

efforts. In the third phase of the "Fresh & Stale Fish" Innovation

Practice Project the program mobilized young employees by orga- The amount of general industrial solid waste ton 4108.35

nizing two "Whisper" talk shows which generated over RMB 150000 Total amount of household waste ton 1918.9

in total revenue. All proceeds were donated to the Wuhan Youth

Development Foundation to support the construction of a Hope Environmental protection

Project library at Dougangang Central Primary School in Xiaonan

District Xiaogan City. To date the HGTECH Young Seedling Annual environmental investment expenditure Ten thousand yuan 1066.54

Program has funded the establishment of four Hope Project libraries. Number of incidents punished for violating

environmentalprotection laws and regulations piece 0

Table 2 Covers First-Tier Subsidiaries and Select Second-Tier Subsidiaries of HGTECH.69

Table 3: Supply Chain Management Performance Table 6: Employee management performance

Index Unit 2025 Index Unit 2025

Proportion of employees with a

Total number of suppliers / 2514 B y master’s degree or above % 15.9

Educational

Number of supplier training sessions / 135 B ackgrou n d Proportion of employees with abachelor’s degree % 40

Passing rate of supplier qualification review % 93%

Proportion of female employees in management % 25

Proportion of male employees in the management team % 75

Table 4: Product R&D and Innovation Performance

Proportion of employees under the age of 30 in the management team % 7.9

Index Unit 2023 2024 2025 Proportion of employees aged 30 to 50 in the management team % 87

Product R&D investment Ten thousand yuan 80232 99270 109156 Proportion of employees aged 50 and above in the management team % 5

R&D investment growth rate % 31.86% 23.73% 9.96% Employee Rights Management

R&D investment as a percentage of revenue % 7.78% 8.48% 7.56% Coverage rate of employee labor contracts % 100

Total number of R&D personnel personnel 2176 2483 2698

Social security coverage rate % 100

Number of patent applications / 324 421 433

Expenditure amount for supporting financially distressed employees Ten thousand yuan 15.45

Number of authorized patents / 239 232 244

Employee Health and Safety

Health check-up coverage rate % 100

Table 5: Employee Management Performance

The Amount of safety accidents and environmental pollution incidents 次 0

Index Unit 2025 Employee safety training coverage rate % 100

Total number of employee person 9462 Coverage rate of supplier employee safety training % 100

Proportion of male employees % 63.4

By Gender Employee training management

Proportion of female employees % 36.6

Employee training coverage rate % 100

Total number of production personnel person 4740

Total number of Sales staff Average training hours for employees hour

15.5

By person 1051

Personnel Total number of financial staff person 128 Proportion of senior administrators % 100

Type

Total number of technician person 2698 Proportion of intermediate administrators % 100

Total number of administrative personnel person 845 Proportion of ordinary employees % 100

Proportion of Under 30 years old employees % 28.3

By Age Proportion of 30 to 50 years old employees % 69.1

Proportion of Over 50 years old employees % 2.6HGTECH COMPANY LIMITED / 2025 Environmental Social and Governance ESG Report 71

Benchmarking Index Table Feedback Form

Comparative Index Report on the Self-Regulatory Guidelines for Mainboard Listed Companies No. 1 – Standard Thank you for reading 2025 Environmental Social and Governance ESG Report of HGTECH. To continuously improve

Operations of the Shenzhen Stock Exchange our ESG practices and provide more valuable information to stakeholders we sincerely invite you to share your feed-

back and suggestions with us via the following channels. Your support for our ESG efforts is greatly appreciated!

Content of Norm Corresponding chapters

Tel: 027-87180126

8.2: Business Principles Compliance Management System Development

Fax: 027-87180139

8.3: Social Responsibility Strategic Planning and Working Mechanism Concise Overview of ESG Management Email: 0988@hgtech.com.cn

8.4: Disclosure of Social Responsibility Reports Information Disclosure and Standardized Operation Address: No. 1 6th Road Huazhong University of Science and Technology Science Park

East Lake High-Tech Development Zone Wuhan City Hubei Province

8.5: Protection of Employee Rights and Interests Employee Rights and Benefits Contact Person: Office of the Board of Directors in HGTECH

8.6: (Ⅰ) Comply with environmental protection laws regulations

and industry standards Environmental management system

8.6: (II) Environmental Protection Plan Response to climate change

8.6: (III) Natural Resource Utilization Reasonably utilize resources

8.6: (IV)Pollutants disposal in compliance with laws Waste Disposal

8.6: (V) Pollution Prevention Facilities Waste Disposal

8.6: (VI) Taxes and fees payment related to environmental protection Environmental Protection Investment

8.6: (VII) Supply Chain Security Supply chain security

8.6: ( Ⅷ ) Other environmental protection responsibilities Environmental management system

8.7 and 8.9: Environmental Information Disclosure We and the Environment

8.8: Implementation Situation and Corrective Measures of

Environmental Protection Policies Environmental management system

8.10: (Ⅰ) Laws Regulations and Industry Standards about Product Safety Enhancing Product Quality through“Management Innovation”

8.10: (II) Production Environment and Production Process Safe production

8.10: (III) Safety Assurance Mechanism for Product Quality and

Accident Emergency Plan Emergency response

8.10: (IV) Other production and product safety responsibilities Occupational Health and Safety

8.11: (Ⅰ) Employee Management System and Measures for

Handling Violations Employee Rights and Benefits

8.11: (II) Prevention on Occupational Hazards and Supporting

Safety Measures Occupational Health and Safety

8.11: (III) Employee Training Employee Development and Training

8.11: (IV) Protection Responsibilities of Other Employee Rights We Our Employees and Social Responsibility

8.12: Scientific Ethics Standards Not Applicable

8.13: Content of Social Responsibility Report We Our Employees and Social ResponsibilityINNOVATION DRIVES A BETTER WORLD

Contact Information

Office of the Board of Directors in HGTECH

Tel: 027-87180126

Fax: 027-87180139

Email: 0988@hgtech.com.cn

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