Newland Environmental Social and Governance Report 2024Newland Environmental Social and Governance Report 2024 Introduction Chapter IV Social Performance About Newland 003 Chairman’s Message 006 Rural Revitalisation and Social Contribution Executive Summary 033007 Employee Responsibilities 037 Quality Management and Product Safety 042 Data Security and Customer Privacy Protection 043 Customer Service 044 Sustainable Supply Chain 045 Chapter I ESG Governance CONTENTS ESG Development Philosophy and Strategy 010 Sustainability Framework 011 Chapter V Governance Performance ESG Risk Management Mechanism 013 ESG Topic Materiality Assessment 014 Corporate Governance 048 Risk Management and Internal Control Compliance 050 Business Continuity 051 Chapter II Innovation Performance Stakeholder Communication and Cooperation 052 Party Building Governance and Business Ethics 053 Innovation Investment and Technological 017 Achievements Supporting the Digital Transformation of 021 the Real Economy Appendices Chapter III Environmental Performance About This Report 054 Key ESG Performance Table 055 GRI Index 057 GHG Accounting Certificates 059 Carbon Neutrality and Climate Change Response 023 Resource Recycling and Pollution Control 027 Land Use and Ecological Conservation 029Newland Environmental Social and Introduction Governance Report 2024 About Newland Newland Digital Technology Co. Ltd. (hereinafter referred to as “Newland” “the Company” or “we”) was established in Fuzhou Fujian Province. It was listed on the main board of the Shenzhen Stock Exchange in 2000. The Company is a digital service provider integrating intelligent terminals big data processing capacity and data scenario operation capabilities.The Company takes serving the national “Digital China Strategy” as its mission and is committed to empowering the development of the digital economy industry through technological innovation. Relying on years of accumulated customer resources and industry experience in segmented fields the Company leverages core technological advantages such as artificial intelligence (AI) edge computing and big data to continuously consolidate its cornerstone industries actively cultivate innovative tracks and deepen its global layout. The Company’s business covers more than 120 countries and regions worldwide continuously delivering China’s digital transformation solutions to countries along the “Belt and Road” initiative. In 2024 the Company’s annual revenue exceeded RMB7.7 billion with a workforce of 6703 employees. It ranks as a national high-tech enterprise and a technological innovation demonstration enterprise.Newland Environmental Social and Introduction About Newland Governance Report 2024 Total revenue: RMB7.75 billion Net profit attributable to parent company: RMB1.01 billion Net cash flow from operating activities: RMB863 million Total dividend: RMB556 million with a cash dividend of RMB5.50 per 10 shares (tax-inclusive) accounting for more than 55% of net profit Taxes paid: RMB330 million with a tax rating of “A” for eight consecutive yearsNewland Environmental Social and Introduction Awards Governance Report 2024 ? 2024 World Internet of Things (IoT) Top 500 ? International Science and Technology Cooperation ? Top 500 Service Industry Enterprises in China Base (for five consecutive years) ? Industrial Technology Basic Public Service Platform National Innovative Enterprise (Co-established by the Ministry and Provincial ? Government) ? National Technological Innovation Demonstration Enterprise ? National CNAS Certified Barcode Engineering Laboratory ? National High-tech Enterprise ? National CNAS Certified Software Evaluation Centre ? National Intellectual Property Demonstration Enterprise ? Information System Construction and Service Capability Level Certificate (Excellent Level) ? National-level Single Product Champion & Demonstration Enterprise in the Manufacturing ? National “Quality Benchmark” Industrial Enterprise Industry ? China Patent Gold Award? National “Specialised Refined Unique and ? China Well-Known TrademarkInnovative” Key Small Giant Enterprise ? China’s 500 Most Valuable Brands ? National Industry-Education Integration ? Top 100 Enterprises by Software Business Revenue Enterprise in China ? Pilot Enterprise for Intellectual Property ? Top 100 Enterprises by Software and Information Utilisation among Industrial Enterprises Technology Service Competitiveness in China ? National-Level Enterprise Technology Centre ? Top 100 Electronics and Information Industry ? National-Level Industrial Design Centre Enterprises in China ? National-Level Postdoctoral Research Station ? Top 500 Service Industry Enterprises in ChinaNewland Environmental Social and Introduction Chairman’s Message Governance Report 2024 Dear partners investors and respected members of the community: Newland has always embedded into the core of its corporate philosophy. In the face of global climate change challenges we have achieved a reduction in carbon intensity in production processes through green technological innovation and have taken the lead in establishing the full-scenario E-CNY payment system driving the low-carbon transformation of finance. In fulfilling social responsibility the Company is committed to rural revitalisation and educational philanthropy with a 100% employee training coverage rate continuously building a diverse and inclusive development ecosystem.The Company adheres to the “Technology for Good” philosophy empowering industrial upgrades with 714 valid patents and blockchain-based trusted identity authentication technology while integrating ESG governance into its strategic priorities. Special committees have been established under the Board of Directors to boost further development of the compliance system. In the future we will continue to deepen digital transformation and work together with all parties to explore new paradigms for sustainable growth and fulfil our responsibility as a technology company in this era.April 2025Newland Environmental Social and Introduction Executive Summary Governance Report 2024 GInonvoevrnaatinocne Environmental ? The number of R&D personnel reached 3804 accounting for 56.75% of ? Domestic wastewater discharge was reduced by 2.92% year-on-year.the total workforce. ? Paper consumption was reduced by 3.98% year-on-year.? Among the R&D team the proportion of members with a bachelor’s ? Non-hazardous waste generated from our technology park decreased by degree or higher was as high as 86.07%. 17.86% year-on-year.? The Company conducted a total of 283 technical training sessions ? The reuse rate of used furniture in new offices exceeded 80%.throughout the year. ? The “Low-carbon Payment” business saved a total of 1.2 million paper ? The Company participated in the formulation of 35 national standards bills in 2024.and led the formulation of 6 industry standards and 7 local standards. ? Our self-developed equipment equipped with a domestic chip and the ? In 2024 the Company applied for 78 invention patents was granted 19 open-source HarmonyOS reduced power consumption by 30% invention patents and held 230 valid invention patents. compared to traditional POS machines.? R&D investment totalled RMB664 million accounting for 8.58% of ? We won the bid for the Ecological Cash Register Project in Fujian total revenue. Province which integrates features such as QR code payments and electronic invoices to achieve paperless transactions. It is expected to reduce paper receipt consumption by over 500 tons annually.Newland Environmental Social and Introduction Executive Summary Governance Report 2024 Social Governance ? Customer satisfaction reached 9 8 . 3 points. ? A total of 99 announcements and supporting materials were released in ? We assisted 100000 small- and micro-sized enterprises in applying for 2024.over RMB100 million of business loans. ? 78 investor inquiries were replied to on irm.cninfo.com.cn throughout the ? We established 9 associations and organised 8 large-scale cultural and year.sports activities in 2024. ? We held 1 results briefing attended by 39 institutions.? We conducted 12 quality training sessions for suppliers throughout the ? We held 2 general meetings of shareholders with 17 proposals reviewed year with over 900 participants. and approved.? We built 11 functional zones in our technology park serving 18830 ? We held 8 meetings of the Board of Directors with 48 proposals people. reviewed and approved.? We carried out 200 safety hazard inspections throughout the year and ? We held 6 meetings of the Board of Supervisors with 14 proposals rectified 15 inspection findings with a 100% rectification rate. reviewed and approved.? We provided paired assistance to two villages with a continuous ? In 2024 we distributed dividends twice amounting to RMB5.56 million.investment of over RMB3.58 million and coordinated provincial construction funds of RMB1.8 million.? We conducted 492 training sessions with 20900 participants and an average of 16.37 training hours per person.ESG Governance Carbon Path to the Future Shared Responsibility through Data GovernanceNewland Environmental Social and ESG Governance ESG Development Philosophy and Strategy Governance Report 2024 Newland adheres to the philosophy of “Technological Innovation for the Benefit of Humanity” and has developed four core sustainability strategies.Technology-Driven Digital Innovation Green Transformation for a Low-carbon Future To drive the industry’s digital transformation through technological innovation and build a global Centred on full lifecycle carbon management to promote green product design clean energy technology ecosystem applications and resource recycling Continue to explore new models for expanding overseas business. Regional expansion in Europe Asia-Pacific and Latin America has shown initial results significantly enhancing local adaptation and continuously reinforcing overseas supply chains. Leverage innovative technology to fully realise resource recycling throughout the product lifecycle.Collaborate with customers and partners in different regions around the world for joint innovation and growth. The number of high- value customers worth over USD10 million has reached a new milestone and business partnerships have been established with several global leading payment solution providers. Conduct climate-related risk assessments to strengthen climate change management.Promote the scenario-based payment service digitalisation of merchant services and the ecosystemisation of digital business helping merchants manage operations empowering the real economy and driving the digital transformation of various industries.Obtain ISO 14064 certification and implement a series of environmental protection measures in the Company’s technology park.Continue to innovate in products and models by launching “Micro Intelligence” and the “Star Quality Plan” rank first among nationwide service providers in the Alipay “Touch to Pay” system and be the only payment institution in the first-tier ranking.Win the CS4 certification for information system construction and service capacity and hold over 70 patents continuing to deepen the Conduct product lifecycle carbon emissions assessments to reduce embedded carbon in products.digital intelligence transformation.People-Oriented Win-Win Cooperation Community Engagement to Fulfil Responsibilities To build a diverse and inclusive corporate culture enhance employee wellbeing and development To empower social development through technological innovation and actively fulfil the Company’s and create a safe healthy and efficient workplace social responsibility Provide various benefits and activities for employees.Pioneer acceptance of overseas IP addresses for UnionPay’s cross-border wallet services as one of the first third-party payment Continuously develop diverse training programmes with three training series named “Land Camp” forming a comprehensive talent institutions in the industry establish partnerships with six major international credit card organisations and expand foreign currency development chain.services to cover 331 cities and 12 key industries significantly improving foreign bank card services in China.Encourage employees to actively participate in community activities and promote the sustainable development of rural revitalisation Included among national models for a family-friendly workplace one of only four entities in Fujian Province.through village-enterprise pairing.Implement a series of measures in offices to ensure occupational health and safety.Key Actions and Achievements Key Actions and Achievements Key Actions and Achievements Key Actions and AchievementsNewland Environmental Social and ESG Governance Sustainability Framework Governance Report 2024 To implement the strategy the Company has established a four-in-one Environmental protection sustainability framework namely innovation-driven focus on Technological Innovation Carbon emission reduction and energy Innovation-driven technology for good efficiency improvement to promote a green technology for good to cultivate sustainable competitiveness carbon future emission reduction and energy efficiency improvement throughout the production and operation cycle to create closed-loop environmental management inclusive sharing to eliminate the digital divide and empower equal participation among diverse entities compliance and integrity to solidify the governance foundation and ensure data security and business ethics. The Board of Directors oversees the ESG governance system integrating the sustainability framework into R&D supply chainand services. Digital tools are used to create a dynamic “strategy- 1 2execution-evaluation” mechanism forming a closed loop that mutually reinforces disclosure and management continuously enhancing business resilience and social value and building a smart and sustainable ecosystem. 3 4 The Company actively responds to the United Nations’ 2030 Agenda for Sustainable Development deeply embedding 17 UN SDGs into its sustainability framework integrating sustainability into the entire chain of technology R&D production operations and social value creation. The progress of each goal and key initiatives are fully disclosed in the corresponding sections of this report aiming to drive the coordinated development of the digital and green economies and inject business- Social Responsibility Corporate Governance Compliance and integrity to foster robust driven positive forces into the construction of a community with a shared Inclusive sharing to benefit peer enterprises sustainable development future for mankind.Newland Environmental Social and ESG Governance Sustainability Framework Governance Report 2024 ESG Management Strategies ESG Management Mechanism Supervise review and assess Review topics and governance strategies ESG ?General mission: Review ESG indicators and Management achievements Regularly Technological innovation for Committee Approve ESG reports and manuals report the benefit of humanity Determine topics manage strategies coordinate advancement Study and determine topics (policy guidelines/stakeholders/peer practises/differentiated features) ESG Working Plan topic governance strategies Group ?General strategies: Guide and Digitalise indicators and monitor the achievement approve of goals Green transformation for a Regularly Prepare ESG reports and manuals low-carbon future report Community engagement to fulfil responsibilities Implement People-oriented win-win Supervise ESG Business Implement topic governance strategiescooperation and assess Perform systematic analysis and Technology-driven digital Representatives management of ESG indicators Support Perform routine management of ESG risks innovation and topicsNewland Environmental Social and ESG Governance ESG Risk Management Mechanism Governance Report 2024 Against the backdrop of rapid technological innovation and the digital economy Newland has always regarded the management of sustainability-related risks and opportunities as an essential part of its robust operations and long-term value creation. To ensure the Company maintains resilience in a complex and ever-changing market environment we have established a systematic mechanism for risk identification assessment prioritisation and management fully supervised by the Board of Directors to ensure that sustainability-related topics receive adequate attention and effective management.Through collaboration with independent third-party sustainability consultants we regularly identify environmental social and governance (ESG) risks and opportunities involved in business operations covering but not limited to climate-related risks (e.g. carbon emission regulation changes extreme weather impacts) supply chain-related environmental and social risks (e.g. raw material sustainability supplier compliance) technological innovation opportunities (e.g. green data centres smart payments and low-carbon technologies). In addition Newland actively Identification: Proactively monitors industry regulations market trends and investor expectations to ensure that the risk management mechanism remains up to date and included key sustainability-related topics into ESG disclosures.identify sustainability-related A multi-dimensional assessment system considering the likelihood of risks and their potential impacts on risks and opportunities business operations financial performance and market competitiveness is used to assess sustainability-related risks and opportunities. For example in climate change response we analyse the potential financial impacts under different scenarios such as the impact of rising carbon emission costs on operating costs and the market Assessment: Quantify the growth opportunities brought by low-carbon payment technologies.impact of risks and the value Based on the assessment results we prioritise major sustainability-related risks and opportunities to ensure precise and of opportunities efficient resource allocation.High-priority risks: Risks that may have a significant impact on the Company’s operations and financial performance such as increasingly stringent carbon footprint regulations for the supply chain; Important opportunities: Opportunities that can significantly enhance the Company’s competitive advantages such as the Prioritisation: Focus on key development of green smart terminal products.sustainability-related topics The Company’s senior management entrusted by the Board of Directors develops and executes risk response strategies specifically including supply chain management to strengthen supplier ESG compliance requirements and promote green procurement technological innovation to develop low-energy-consumption high-efficiency intelligent Management: Continuously terminal products to help customers achieve sustainability goals and information transparency to enhance ESG disclosures to earn more trust from investors and the public. As part of its oversight responsibilities the Board of optimise risk control Directors regularly reviews the effectiveness of risk management measures and optimises strategies when necessary to ensure the Company remains at the forefront of sustainable development.mechanismsNewland Environmental Social and ESG Governance ESG Topic Materiality Assessment Governance Report 2024 Stakeholder communication Government and Regulatory Employees Shareholders Customers Supplier Partners Media Authorities ? Compliance with laws and ? Rights protection ? Economic performance regulations ? Integrity and mutual benefit ? Product R&D and innovation ? Supply chain management ? Information disclosure ? Career development and ? Return on investment ? Tax payment as required by laws ? Win-win development ? Privacy and information security ? Open fair and impartial ? Public image enhancement promotion procurement ? Robust operations ? Observation of business ethics ? Fairness impartiality and ? Product safety and quality ? Positive contributions to society ? Safety and health ? Procurement policies openness ? Information disclosure ? Response to national policies ? Public engagement ? Remuneration and benefits ? Industry co-building ? Sustainability capacity ? Lawful and compliant operations ? Talent attraction and retention ? Data security ? Risk management ? Environmental protection ? Active employment promotion ? On-site or online meetings ? General meetings of shareholders Periodic reports/temporary ? Business exchange? ? Customer service hotline ? Bidding activities ? Annual reports Mid-term results reports ? Interviews ? Annual reports financial statements announcements ? Business cooperation announcements and circulars ? Customer satisfaction survey ? Procurement activities and announcements ? Hotline and email ? Policy consultation and Field surveys or ? Business negotiations ? Email and fax? Product launches exhibitions ? ? Results briefings and roadshows feedback ? Employee representative assessments ? Partner conferences ? Public welfare activities conferences ? Official announcements ? Correspondence ? Supplier conferences ? Official website and social ? Media interviews ? Employee supervisors ? Social media platforms ? Compliance monitoring ? Assessments and scoring media platforms ? Exchange meetings ? Employee surveys ? Email and fax ? Thematic reports ? Official website and social media ? Field surveys platforms Stabilise economic growth and ? Proactively pay taxes in ? Ensure product safety and quality ? Integrate sustainability ? Adhere to the principles of ? Strengthen communication interaction ? Establish labour relations in ? maintain a good development accordance with the law through a well-developed quality concepts throughout the fairness and impartiality mutual and cooperation with the public and accordance with the law to momentum ? Provide job opportunities management system supplier management benefit and complementary media protect employees’ rights ? Abide by laws and ? Establish an all-around process and actively guide development with differentiated ? Improve training and promotion ? Balance scale expansion with ? Use social media and the Company’s regulations cybersecurity management suppliers to strengthen strengths mechanisms to support efficiency improvement creating ? Uphold the business philosophy official website and WeChat and ? Contribute to the framework to provide stable ESG management employee growth value for shareholders Weibo accounts to post updates on the construction of Digital reliable and secure products and Uphold the business of honesty and integrity? ? Optimise the compensation and Continuously improve the corporate China services philosophy of honesty and ? Establish long-term strong Company operations products and ? benefits system to enhance services governance system to ensure ? Actively participate in ? Highlight customer needs and integrity partnerships with banks and incentive effects standard and compliant management policy feedback continuously improve customer Standardise procurement strategic partners? ? Actively participate in popular industry ? Regularly organise employee satisfaction policies exhibitions to showcase the health check-ups and provide ? Integrate business resources to create ? Enhance product and service ? Build diverse Company’s strength medical insurance a strong business ecosystem and innovation communication and ? Organise cultural and sports launch industry-leading products and ? Actively engage in social public learning channels to gather activities to enrich employees’ solutions welfare to enhance the Company’s upstream and downstream cultural lives public image ? Perform timely legal and compliant partners and empower the ? Attract diverse talent information disclosures supply chain Ways of Stakeholders Topics of Concern Responding Measures CommunicationNewland Environmental Social and ESG Governance ESG Topic Materiality Assessment Governance Report 2024 Environmental Topics Materiality Assessment Topic 1: Climate Change Response and Carbon Neutrality Topic 2: Pollutant Discharge and Waste Management Topic 3: Land Use and Biodiversity 13 Topic 4: Environmental Management Policies Topic 5: Energy Utilisation Topic 6: Water Resource Management Topic 7: Circular Economy 20 1214 1929 11 Social Topics 1017 2524 271 18 Topic 8: Rural Revitalisation and Social Contribution 16 Topic 9: Technological Innovation 36 Topic 10: Supply Chain Management 15 Topic 11: Business Continuity Topic 12: Customer Service Topic 13: Product Safety and Quality 8 Topic 14: Data Security and Customer Privacy Protection Topic 15: Diversity and Inclusion Topic 16: Employee Training and Career Development Material M a t e r ia l i t y t o N e w l a n d Highly material Topic 17: Occupational Health and Safety Topic 18: Employee Care and Benefits In 2024 the Company based on the principle of dual materiality widely collected and sorted out feedback and expectations on environmental social and governance aspects from stakeholders including customers employees investors and partners. Through systematic analysis and Governance Topics scientific assessment 22 material topics were ultimately identified. Based on the materiality scores from stakeholders an ESG materiality matrix was developed. On this basis the Company has listed topics with both high external attention and strong internal relevance as key areas of Topic 19: Corporate Governance sustainability management which are extensively discussed in this report. This systematically Topic 20: Risk Management and Internal Control Compliance demonstrates the direction of the Company’s collaboration in terms of ESG governance and long- Topic 21: Stakeholder Communication and Cooperation term value creation. Topic 22: Business Ethics Materiality to stakeholders Material Highly materialInnovation Innovation Investment and 01 Technological Achievements Performance (SDG 9) A Technology-Driven Future Supporting the Digital 02 Transformation of the Real Economy (SDGs 8 9)Newland Environmental Social and Innovation Performance Innovation Investment and Technological Achievements Governance Report 2024 Investment in innovation In 2024 the Company continued to increase its investment in technological innovation with R&D investment reaching RMB664 million accounting for 8.58% of total revenue providing solid financial support for technological innovation and product upgrades. At the same time the Company actively expanded the size of its R&D team optimised the talent structure and built a high-quality professional R&D team.By the end of 2024 the Company’s total number of R&D personnel reached 3804 accounting for 56.75% of the total workforce fully demonstrating the core position of technological innovation in Age Structure of the R&D Team the Company’s strategy.Under 30 30 to 40 41 to 50 51 and above Among members of the R&D team 86.07% hold a bachelor’s degree or higher including 3274 with a bachelor’s degree 230 with a master’s degree and 300 with other qualifications showcasing the team’s solid professional foundation and diverse knowledge background. 1%10% The age structure of the R&D team is well-balanced with 1869 employees under 30 years old accounting for 49.13% 1519 employees aged 30 to 40 accounting for 39.93% 378 employees aged 41 to 50 and 38 employees aged 51 and above. This has formed a team structure where young talent 49% are the backbone supported by mid- and senior-level technical talent injecting vitality into the Company’s continuous innovation. 40% Throughout the year the Company conducted 283 technical training sessions continuously improving the skill level and professional qualities of R&D personnel. Through R&D investment and talent team building the Company has driven technological breakthroughs and product upgrades providing strong technological support for sustainability goals.Newland Environmental Social and Innovation Performance Innovation Investment and Technological Achievements Governance Report 2024 Newland builds a digital foundation through standard-setting and technology-driven innovation empowering the industry’s digital transformation. In the field of standard setting the Company has led the formulation of 49 standards in areas such as IoT and AI filling the gap in domestic barcode reading standards. In terms of technology it has promoted innovative applications such as E-CNY AI algorithms and edge computing supporting scenarios like smart technology parks drug traceability and intelligent security providing strong support for the digital transformation of the real economy. In 2024 Newland filed 78 invention patent applications was granted 19 invention patents and held 230 valid invention patents. Newland currently holds 700 valid national patents and 14 valid foreign patents.Standard setting Innovation awards Newland serves as an expert member in four sub- committees of Chinese Educational Technology Enterprise Recognition Project Awards Standardisation Committee (CETSC) and has China Patent Award (Excellent Award) repeatedly led or participated in the formulation of - A Small Barcode Image Collector national and industry standards in fields such as the National National High-tech Enterprise Third Prize for AI Section in the 2024 Digital China IoT digital identity AI and biometrics. This includes Level Innovation Contest leading the formulation of the national standard - An Internet of Video Things Platform Solution Information Technology - Biometric Data Interchange Formats - Part 5: Face Image Data and 6 industry Industrial Leading Enterprise in Fujian Province standards and 7 local standards and participating in Manufacturing Industry Leading Enterprise in Fujian the formulation of 35 national standards. The Province Company also leads the Ministry of Industry and Top 100 Enterprises in Strategic Emerging Industries in High-Quality Artificial Intelligence Software Product in Provincial Information Technology’s intelligent manufacturing Fujian Province in 2024 Fujian Province comprehensive standardisation project and participates Level Leading Artificial Intelligence Software Enterprise in - Newland’s Artificial Intelligence Service Platform in the NQI project under the National Key R&D Fujian Province Programme. Innovation Enterprise in the Core Industry of Digital Economy in Fujian Province in 2024 In the field of standard setting the Company has been recognised as an outstanding private enterprise for Industrial Leading Enterprise in Fuzhou in 2024 standard innovation in Fujian Province and has Software Industry Leading Enterprise in Fuzhou in 2024 Outstanding Achievement Award at the 2024 Fuzhou received the Science and Technology Award from Municipal Enterprises Selected for Intellectual Property Employee “Five Smalls” Innovation Competition (First China Association for Standardisation (CAS) as well Level Standardisation Cultivation Programme in Fuzhou in Prize) as one first prize and three second prizes for standard 2024 setting contributions in Fujian Province.Newland Environmental Social and Innovation Performance Innovation Investment and Technological Achievements Governance Report 2024 Technological achievements drive industry development In the wave of digital economy development Newland actively embraces industrial AI to achieve cost reduction efficiency improvement and revenue generation. Through ecological cooperation with large models such as Doubao ERNIE Bot and Tongyi Qianwen the Company conducts generalised research to generate vertical scenario-based small models which are widely applied in daily work scenarios such as technology R&D data collection industry applications and risk control compliance significantly improving work efficiency and saving costs. In 2024 the Company’s big data and AI projects generated a total revenue of over RMB210 million.Facial recognition-based liveness detection: Edge computing: In February 2024 Newland’s monocular silent The video edge gateway has successfully created an intelligent solution liveness detection algorithm successfully passed system across multiple industries achieving large-scale applications in the security performance test by the First Research several vertical fields. Adoption of the solution in natural gas and petroleum Institute of the Ministry of Public Security of the industries and chemical parks’ intelligent security operations in Ningxia People’s Republic of China. This technology meets Henan and Fujian has set up replicable industry implementation models. The GA/T 1723.4-2020 CTID Online Authentication - edge gateway has been successfully applied in multiple scenarios including Authentication Services - Part 4:Technical community governance urban management highways traffic tunnels Requirements for Facial Image Capture Control construction sites and campus security. In addition to successfully the highest national standards for resident network expanding application scenarios the Company has also accumulated rich identity authentication marking that Newland’s technical and business experience. Next we will delve into scenario monocular silent liveness detection algorithm has demands and develop multiple application solutions for business expansion.reached an industry-leading level in terms of security.Newland Environmental Social and Innovation Performance Innovation Investment and Technological Achievements Governance Report 2024 Technological achievements drive industry development Case E-CNY In 2024 Newland collaborated with Industrial Bank to build the full-scenario E-CNY smart park creating an industry-leading digital currency work badge project. This project achieved system- level interoperability with the E-CNY 2.0 platform’s soft and hard wallet system innovatively integrating payment tools and enterprise identity authentication. The project received exclusive permission from the Digital Currency Institute of the People’s Bank of China for the appearance design of work badges supporting customised display of enterprise logos.As of the end of the reporting period the digital currency work badge system has integrated identity authentication mobile payment and intelligent management functions covering access control attendance dining and consumption scenarios. Over 5000 badges have been issued creating a positive closed-loop application ecosystem. Based on practises in its technology park Newland has built an all-around replicable E-CNY solution. Relying on secure intelligent payment trusted digital identity and other technologies it has developed a one-stop platform for smart contracts fund collection and intelligent analysis laying the foundation for expansion in campus community and industrial park scenarios. In the future we will continue to deepen the innovation applications of “digital currency + government society and economy”.Newland Environmental Social and Innovation Performance Supporting the Digital Transformation of the Real Economy Governance Report 2024 Newland empowers the real economy through technological innovation and digital services driving industry transformation and upgrading. In the retail sector smart supermarket devices and full-link digital services help stores achieve operational digitisation and revenue growth; in the terminal equipment sector intelligent POS terminals meet multi-scenario demands significantly improving banks’ customer service efficiency; in scenario innovation Newland provides data-driven precision analysis and intelligent management tools for traditional religious institutions. These practises highlight the strong empowerment of fintech and digital solutions to the real economy providing replicable successful examples for industry digital transformation.Smart supermarkets drove Smart POS terminals empowered merchants Supported the digital transformation of revenue growth and banks religious sites During the 2024 Spring Festival Postar focused on the In September 2024 Newland’s Postar Huilaidian and In November 2024 Newland Payment Technology management challenges in the religious sector customisingHenan Hebi Post received three pennants from Co. Ltd. (hereinafter referred to “Newland smart solutions for hundreds of religious sites such asLongsheng Supermarket a well-known local chain Payment Technology”)’s N910 Pro smart POS Jiulong Zen Temple in Fuzhou and Longxing Temple in supermarket. Newland’s Postar and Huilaiddian deployed terminal won the China Construction Bank’s Chuzhou. Digital technology was used to empower the smart supermarket hardware and software devices in six national chip handheld smart POS procurement inheritance of traditional culture. In response to the chain stores of Longsheng Supermarket. Through project with the highest total score covering both challenges of cash management and unclear reconciliation professional retail ERP software full-link digital Android and domestic operating systems. N910 Pro in traditional donation boxes the Company deployed the services precise member marketing and omnichannel fully meets the multi-scenario needs of merchants Lejuan electronic donation screen supporting QR code marketing nearly RMB3 million in transaction amounts closely aligns with banks’ business development self-service blessings and donations. This enabled self- were processed efficiently accelerating the stores digital significantly enhances customer service experience service for devotees and transparent management of temple transformation and upgrading achieving sustained and demonstrates Newland’s technological finances and in places like Sanming Fujian it built a smart revenue growth. advantage and industry-leading position in the offering platform to optimise the religious experience payment sector. serving over 10000 people daily.Carbon Neutrality and Climate Change 01 Response Environmental (SDGs 7 13) Performance Resource Recycling and Pollution 02 Control (SDGs 6 12) Carbon Emission Reduction and Energy Efficiency Improvement Land Use and Ecological Conservation03 (SDGs 11 15) to Promote A Green FutureNewland Environmental Social and Environmental Performance Carbon Neutrality and Climate Change Response Governance Report 2024 Build a multi-dimensional green procurement system to Carbon neutrality drive the low-carbon transformation of the supply chain Green procurement Carbon emission detection and certification Green operations ? At the supplier level we encourage partners to adopt energy-efficient vehicles and green logistics conductThe Company places high importance on The Company focuses on “low-carbonregular carbon emission audits and provide low-payments” promoting electronic bills invoices carbon production training for suppliers. We alsolow-carbon development. In 2024 we conducted our f irst organisational and online payment services to reduce the strictly control harmful substance content in raw circulation of paper documents. While materials through the Halogen-Free Productcarbon footprint accounting obtaining providing digital management support to Manufacturing Management Regulations ensuringISO 14064 certification and collaborated with downstream manufacturers for medium- small- and micro-sized enterprises in compliance with international standards such as IEC product carbon footprint certification. 2024 we saved a total of 1.2 million paper bills 61249-2-21. (equivalent to approximately 14 tonnes of ? At the product level our self-developed equipmentIn 2024 total carbon emissions amounted paper) and won the provincial ecological cash uses domestic chips and the open-sourceto 15485.28 tonnes of CO? equivalent of HarmonyOS reducing power consumption by 30% which direct greenhouse gas (GHG) register project. Through the integration of QR compared to traditional POS machines. Our self- emissions totalled 775.30 tonnes of CO? code payments and electronic invoices we achieved paperless transactions expected to developed low-power module technology extends theequivalent and indirect GHG emissions reduce paper waste from receipts by over 500 service life of equipment and reduces electronictotalled 14709.98 tonnes of CO? tonnes annually. waste.equivalent.? Using innovative technologies and environmentally Green commuting friendly materials to reduce waste: We use HCE technology to reduce paper receipts eSIM technology to reduce plastic waste and primary The Company has built a green travel colour injection moulding to reduce paint usage. We system optimised shuttle bus routes also use recycled plastic and biodegradable (operating 20 routes covering main urban components effectively reducing environmental areas in 2024) and implemented pollution.intelligent scheduling for vehicles for ? Optimising packaging and product design to improve business purposes (with 2306 trips recycling rates: We implement lightweight packaging Green processes scheduled annually a 13.9% year-on- strategies promote electronic manuals use battery- year increase). A total of 445274 rides separable designs and adopt battery health were recorded while strict control was management solutions to extend product life and maintained over the scale of parking reduce electronic waste.spaces in the technology park a n d ? Promoting standardised connectors to reduce carbon multiple charging stations were added footprints: We sell devices with industry-standard effectively reducing traffic-related carbon USB connectors to reduce unnecessary USB power emissions. replacements further lowering resource consumption and carbon emissions.Newland Environmental Social and Environmental Performance Carbon Neutrality and Climate Change Response Governance Report 2024 Green office Full-process paperless transformation Precise energy efficiency management Resource recycling mechanism The Company systematically promotes ? We established four exclusive policies ? In new offices the reuse rate of used green office transformation and has built a including the Energy Resource furniture exceeds 80% and our canteen full-process electronic management Management Regulations and built an provides biodegradable tableware.system. ISO 50001 energy management system standardising energy consumption data ? The shared printing area implements a ? We implement an online approval collection and dynamic optimisation. double-sided paper usage policy and system covering processes such as recycles envelopes paper and paper bags.item requisition and meeting room ? All office areas have been retrofitted In 2024 paper consumption was reduced to booking. In 2024 the number of with LED lighting and energy-efficient 1013 tonnes a 3.98% decrease year-on- electronic contracts signed reached equipment with dedicated personnel year. 11148 an 8.5% increase year-on- conducting daily inspections to turn off year reducing paper documents by standby power with air conditioning set approximately 50000 copies. to a constant 26°C. In 2024 office energy consumption decreased by 8%.? We put into use the AI business travel platform and electronic seals with ? We have also optimised equipment load 100% electronic archiving of HR in the server room with an utilisation contracts and documents and also rate of 98% an increase of 3% year-on- digitalise the management processes year and a 5% improvement in unit for overseas service providers. computational efficiency.Newland Environmental Social and Environmental Performance Carbon Neutrality and Climate Change Response Governance Report 2024 Climate risk management Plans and Countermeasures for Climate Risks Climate-related risks Potential impacts Countermeasures 1. Water damage to data centres and 1. Smart alerts: Notify employees of safety precautions and work arrangements in the event of extreme weather. factory equipment.Extreme weather 2. Emergent reinforcement: Deploy flood barriers and drainage pumps and elevate critical equipment off the ground. 2. Supply chain delays due to logistics (typhoons heavy rain 3. Flexible work arrangement: In accordance with the Level I response requirements of the Fuzhou Meteorological Disaster Emergency Plan disruptions.flooding) when a red typhoon warning is issued in Mawei District or the 24-hour rainfall reaches 300mm R&D labs and production workshops shall 3. Safety hazards during employee suspend operations commuter shuttle services shall be halted and all employees shall take leave and stay home.commutes. 1. Risk of server overheating and 1. Technical controls: Use cooling technology in the server rooms and the temperature control system automatically adjusts to ≤25°C. downtime. 2. Health protection: Based on the characteristics of various positions in the technology park and feedback on care activities in previous years Sustained high 2. Health risks for employees working provide special summer care to frontline employees working at high temperatures through the distribution of cooling supplies and field visits. temperature outdoors. 3. Equipment insurance: Purchase climate disaster insurance for core factory equipment to cover repair losses caused by high temperatures/drought. 1. Damage to building structures. Sea level rise and 1. Building renovation: Apply moisture-proof coatings. 2. Moisture corrosion of electronic coastal salinisation 2. Employee training: Conduct quarterly climate emergency drills simulating flood evacuation and data backup processes.components.Develop the Emergency Preparation and Response Control Procedures incorporate extreme weather events such as typhoons and heavy rain into special emergency plans and clearly define the three-level response mechanism Formulate standardised Strengthen routine prevention Improve risk prevention emergency policies and control systems mechanism Business continuity: Obtain ISO 22301 certification and improve emergency drill plans and training mechanisms to ensure the Joint warning: Coordinate with meteorological departments and Regular drills: Conduct two typhoon warning drills and one fire evacuation continuity of critical business operations.emergency rescue agencies to get real-time early warning information.drill annually. In 2024 1029 people participated in such drills an 8% Property insurance: Purchase comprehensive property insurance for Material support: Reserve water sources for emergency flood control increase compared to the previous year. park buildings equipment and production materials every year to sandbags and other materials and complete drainage system repairs Graded response: Initiate countermeasures based on the level of cover natural disaster losses.before typhoons.meteorological warnings with an average of 4 climate notifications issued Employee protection: Conduct regular safety training to clarify On-call response: Implement 24-hour rotating shifts duty during annually. extreme weather evacuation procedures and relocate materials and extreme weather to ensure rapid response to emergencies.vehicles from risk areas in advance.Newland Environmental Social and Environmental Performance Carbon Neutrality and Climate Change Response Governance Report 2024 Climate risk management Case Braving Typhoon Gaemi: Systematic defence in our technology park in Fuzhou resulted in zero losses In July 2024 due to Typhoon Gaemi Fuzhou experienced continuous heavy rainfall. The Company in coordination with the park administration immediately activated the typhoon and flood control plan and took multiple emergency measures including placing flood barriers and road gates in the basement fully inspecting drainage pumps and clearing pipe networks relocating outdoor production materials elevating goods in warehouses reinforcing trees in the park sending early warnings initiating the 24-hour rotating shifts preparing adequate sandbags relocating vehicles suspending the operation of shuttle buses and making personnel shift arrangements. Through systematic defence measures the safety of employees and properties in the technology park was effectively guarded during the typhoon with no losses occurring.Newland Environmental Social and Environmental Performance Resource Recycling and Pollution Control Governance Report 2024 Pollutant discharge management Electronic waste management Build a standardised policy system Improve chemical Implement closed-loop pollution management regulations control management ? We develop the Used Equipment Recycling and Reuse Management Regulations and the Operating Specifications for Disposal of Discarded Electronic Products specifying the full process requirements We purify exhaust gases through dust for equipment registration evaluation data elimination and disposal.? We obtain the IECQ QC080000 Hazardous Substance Management System certification and strictly We strictly implement the treatment devices control noise through follow the EU WEEE Directive. Equipment is clearly marked with the “wheelie-bin” recycle label.Chemical Management Regulations soundproofing measures and conduct ? We establish an authorised repair network for equipment recycling in Europe to ensure compliance with to standardise the procurement regular third-party environmental testing international environmental regulations and regional recycling standards.storage and use processes (with all results meeting standards). We focusing on controlling the risk of collect and recycle general solid waste such hazardous chemical leaks. We as cardboard and plastics and establish a entrust qualified professional dynamic monitoring mechanism for Implement full-lifecycle closed-loop management institutions with waste disposal to pollutant emissions ensuring environmental ensure full-process compliance and management is legal and compliant through ? Graded assessment: Before recycling equipment model condition and other information to assess prevent environmental pollution. standardised reporting and third-party repair value and recycling potential.collaborative supervision.? Data security: IT departments or third-party agencies perform data wiping and encryption checks on devices containing storage media and issue security reports.? Classified disposal: Repairable equipment is restored and reused internally; non-functional equipment is dismantled and components are sent to professional agencies for environmentally friendly disposal.Deepen recycling effects ? In 2024 a total of 44548 POS devices were recycled a 4% increase compared to 2023. The number of recycled used equipment continued to expand.? An internal equipment recycling system has been established with repaired devices labelled and made available to departments as needed reducing asset procurement costs.? Through recycling by professional institutions the recycling rate of metals plastics and other materials exceeds 90% reducing the amount of waste sent to landfills.Newland Environmental Social and Environmental Performance Resource Recycling and Pollution Control Governance Report 2024 Water conservation for ecological sustainability Systematic water conservation Precise technology upgrades and Regular promotion and 010203 system building monitoring behavioural guidance * We establish a graded management system to clarify * Facility renovations: The data centre uses water-saving * We organise water conservation training every water usage regulations for office and production areas cooling equipment with a 10% increase in the quarter. In 2024 four company-wide activities implement a dedicated cleaning service for property purification and reuse rate of circulating water. The were held with a participation rate of over 95%.management and ensure daily monitoring including green areas adopt drip irrigation technology * Water conservation signs are posted in office areas equipment inspection and leak reporting. significantly reducing outdoor water consumption. to strengthen employees’ awareness of turning off * We formulate the Water Conservation Equipment * Dynamic monitoring: Smart water meters are deployed taps.Selection Standards prioritising the procurement of to collect real-time data. In 2024 three special * Domestic wastewater discharge has continuously efficient water-saving devices such as smart water inspections were conducted with 12 leak points decreased with a total of 30875 tonnes in 2024 a meters and sensor faucets. In the new office building repaired and office water consumption decreased by 2.92% reduction year-on-year.the coverage rate of sensor faucets is 100%. 2.92% year-on-year.* We implement a rainwater and sewage separation drainage system. Wastewater discharge complies with the Water Pollution Control Regulations of Fujian Province.Newland Environmental Social and Environmental Performance Land Use and Ecological Conservation Governance Report 2024 Energy-saving technology Prioritising ecology for co-fulfilment applications: of responsibilities For air conditioning we use a variable refrigerant flow multi-split system to intelligently adjust energy efficiency. The entire building is equipped with intelligent LED lighting and automatic sensor switches for stairwells.Ecological design of our technology park Newland Technology Park occupies 150 acres Optimised building design: with a green area of 15000 square metres Aluminium alloy low-radiation coated hollow glass is covering 35%. The park features a variety of used to reduce heat transfer and air conditioning load.plant communities including shrubs and trees forming a diverse ecosystem that attracts birds squirrels and other wildlife. It was oncerecognised as a “Park-Style Model Enterprisein Fuzhou”. The total amount of non-hazardous Green evaluation system: waste generated in the park was 23 tonnes in Through green building certification and energy 2024 a 17.86% decrease year-on-year efficiency evaluations we ensure that the building’s environmental performance meets the standards.achieving an organic integration of ecology and office environments.The Yiyue Industry-Education Integration Ecological and cultural Building project launched in 2023 fully integration: incorporates environmental protection principles throughout its lifecycle. We plan indoor and outdoor vertical greening along with facilities such as a yoga room and employee canteen to create a low-carbon comfortable space.Newland Environmental Social and Environmental Performance Land Use and Ecological Conservation Governance Report 2024 Prioritising ecology for co-fulfilment of responsibilities Case Newland × China Tower: Technological integration drives the upgrade of environmental “technical defence ” Newland in collaboration with China Tower and leveraging thetechnological integration platform of “China Tower + IoT + Big Data+ AI + Edge Computing” has independently developed an intelligent environmental product matrix. This covers multiple scenarios such as straw burning prohibition air pollution control water environment governance and marine ecology protection. By deploying high- precision monitoring terminals and intelligent algorithms theCompany has built a “pollution monitoring traceability model +intelligent prediction system” forming a four-in-one pollutionprevention and control system of “3D monitoring scientific analysistargeted control and comprehensive evaluation”. This system enables real-time dynamic perception of pollution sources scientific prediction of pollution trends and targeted implementation of remediation measures assisting ecological and environmental departments in multiple regions in the digital transformation of regulatory models from “human defence” to “technical defence” providing a replicable intelligent governance model for the construction of Beautiful China.Newland Environmental Social and Environmental Performance Land Use and Ecological Conservation Governance Report 2024 Environmental management policies The Company integrates environmental risk management into its strategy and operations using ISO 14001 as a framework to establish a “Goal-Inspection-Correction” closed-loop mechanism. Through dynamic monitoring and comprehensive staff training we drive green compliance and the achievement of carbon reduction goals.System construction and closed-loop Technological control and dynamic monitoring management Focusing on noise exhaust gas and wastewater treatment we implement Awareness enhancement and cultural We establish an environmental management system measures such as smoke purification regular maintenance of air development in line with ISO 14001 setting up environmental compressors and wastewater leak prevention.We conduct comprehensive environmental protection management representatives and special teams We establish a “ daily inspection + quarterly testing + emergency response” training for all employees and provide specialised guidance with clear mechanisms for goal setting execution three-tier monitoring mechanism to monitor resource consumption and for key departments on energy saving and emissions monitoring and performance evaluation. emissions data in real time send dynamic warnings and optimise strategies.reduction to strengthen risk response capabilities.Based on the Environmental Inspection Guidelines We promote green culture through thematic activities dynamic inspections are conducted and cross- digital monitoring dashboards and annual environmental department collaboration is achieved through the reports ensuring alignment between sustainable carbon Data Analysis Control Procedures. Corrective reduction goals and strategies.actions are carried out according to the Corrective Actions Procedures to complete the PDCA (Plan- Do-Check-Act) closed-loop correction.01 Rural Revitalisation and Social Contribution (SDGs 1 9) 02 Employee Responsibilities (SDGs 3 4 5 8) Social 03 Quality Management and Product Safety (SDGs 12 16) Performance Data Security and Customer Privacy 04 (SDGs 12 16) Co-Building and Sharing to Foster Harmonious Coexistence Customer Service 05 (SDGs 16 17) Sustainable Supply Chain 06 (SDGs 9 12)Newland Environmental Social and Social Performance Rural Revitalisation and Social Contribution Governance Report 2024 Focusing on precise industry cultivation and infrastructure improvement Newland has built a long- term assistance mechanism to effectively promote both the production and living standards in Case impoverished areas. By taking practical actions the Company fulfils its corporate social responsibility and injects sustainable momentum into rural revitalisation.Extending a helping hand to assist the needy Village-enterprise cooperation for livelihoods improvement showing true care for people in Ningxia Since 2016 Newland has paired with Xi’an Village in Yongtai County and Shangzhi Village in Anxi County. Over eight years it has continuously invested over RMB3.58 million and coordinated In March 2024 under the coordination of the Payment and RMB1.8 million in provincial construction funds. These efforts have covered various areas such as Settlement Department of PBOC Ningxia Branch Newland drinking water system renovation poverty-stricken housing repairs elderly care home upgrades provided targeted assistance to Pinglu Village Luhai Village and educational support. and Heicheng Village in Sanhe Town Haiyuan County Ningxia. Focusing on people’s livelihood needs the Company made financial donations and integrated resources contributing tens of thousands of funds to support rural infrastructure and the Precise cultivation of specialised industries operation of senior canteens and also donated holiday gifts to Driving the benefit special groups. The activities effectively improved local Focusing on the resource endowment of Xian Village in Yongtai Newland has cultivated four infrastructure conditions enhanced the welfare of the elderly construction of major industries to support the local economy namely tea-oil tree planting free-range chicken and received high recognition from local governments and wealthy and farming photovoltaic power generation and ginkgo ornamental forest. Through continuous follow- widespread praise from the public.up visits Newland has helped Xian Village’s tea oil industry achieve standardised production while beautiful villages cultivating the ecological tourism industry forming a “specialised agriculture + rural tourism” dual- in three ways drive model driving increases in income and poverty alleviation for local villagers.Building long-term mechanisms for co-construction and co-cultivation We promote more convenient withdrawal services in Heilongjiang Jilin and Liaoning provinces to improve payment convenience in rural areas. Additionally in collaboration with PBOC Ningxia Branch Newland has established industry projects such as soybean product processing plants creating an “Industry Support + Resource Integration” village-enterprise cooperation model. This effectively has served the rural economy earned multiple local commendations and driven the sustainable development of rural revitalisation.Newland Environmental Social and Social Performance Rural Revitalisation and Social Contribution Governance Report 2024 Shared responsibility enduring goodness Education support and community co- Accessible products and inclusive services construction In response to the needs of the visually impaired Newland A directed donation of RMB300000 has been made to strictly adheres to the EU EN301549 Accessibility Directive in Fudan University specifically for campus cultural the development of financial terminal devices. Certified by construction and cutting-edge discipline research to the Royal National Institute of Blind People (RNIB) in the support the enhancement of higher education quality. UK the devices ensure that features such as key layouts and voice prompts meet international accessibility standards.We establish a regular volunteer service mechanism regularly organising employees to participate in Overlaying AI technology on smart terminals to optimise community environmental protection health knowledge 1 2 public welfare service scenarios we enhance the user promotion and other public welfare activities experience for special groups.effectively strengthening the interactive bond between the Company and the local community.Public welfare actions and care for life 3 4 Financial security and legal advocacy In 2024 the Company organised 2 themed public welfare Throughout the year 64 articles on financial security were promotion events attracting 385 participants effectively published with a readership of 9655 people. The Company raising public awareness of safety and environmental actively cooperated with the People’s Bank of China and the protection. Payment & Clearing Association of China to carry out “Financial Awareness Month” and other themed activities In 2024 the Company in collaboration with the People’s contributing to building a safe and stable financial Government of Mawei Town organised a blood donation environment.event for employees in its technology park demonstrating Two sessions of legal awareness promotion were organised Newland employees’ social responsibility. The event for all employees covering 700 employees with related received high recognition from the government and content read by 631 people contributing to strengtheningsociety earning the “Voluntary Blood Donation Caring legal awareness within the Company.Enterprise” title from the government.Newland Environmental Social and Social Performance Rural Revitalisation and Social Contribution Governance Report 2024 Shared responsibility enduring goodness Case Blending education with entertainment to strengthen risk prevention During the 2024 Financial Education Awareness Month Newland’s Postar in collaboration with 15 financial institutionslaunched the event themed “Finance for thePeople Protecting Rights and PreventingRisks”. Through engaging interactive activities such as prize quizzes checkpoint games and targeted stamp collection they effectively enhanced citizens’ ability to identify financial risks such as illegal fundraising and telecom fraud receiving positive social feedback.Newland Environmental Social and Social Performance Rural Revitalisation and Social Contribution Governance Report 2024 Shared responsibility enduring goodness Case Case Case Newland’s Postar supported Case Smart communities benefit Shenyang’s night economy thousands of families Foreign card transaction Digital transformation Newland’s Postar in collaboration with HuilaidianDeep diving into living Heyuan Post and technology partners developed the support and financial service In 2024 Newland’s Postar in collaboration with consumption guarding the “Smart Community Property Management Platform” for Industrial Bank Shenyang Branch formed a special Wanlong Property. The platform integrates technologies optimisation service team to address the night-time consumption financing of small- and micro- such as the IoT and cloud computing covering 11 scenario needs of the “Spending Summer in Hunnan” communities and approximately 7000 households. It sized enterprises provides one-stop services for property payments Newland actively responds to financial opening-up cultural tourism project. Through field research a unified payment solution was customised for more than 90 security management work order handling and more.policies and helps optimise the foreign card transaction merchants deploying terminal devices such as cloud- Residents can access property information in real-timesystem. In 2024 the Company assisted the People’s Bank In 2024 the Youlian Loan team focused on the living based payment speakers and smart QR code tags to provide feedback and make requests and enhanceof China in completing the modification of over 50000 consumption industry conducting in-depth research on 16 achieve unified transaction data management and information sharing and interaction optimising the livingterminals for foreign card services expanding the foreign sub-industries such as catering baking entertainment currency service network to 331 cities and 12 key automated accounting processing. This project used experience. The project generated over RMB36 million hotels and retail as well as 68 franchise brands. By technology to empower small and micro businesses in annual property fees and provides a replicable modelindustries nationwide. The cumulative transaction volume refining cost breakdowns the team deepened industryboosting the integration of Shenyang’s “Night Economy for social responsibility practises in smart communityexceeded RMB120 million not only enhancing the insights and provided nearly RMB50 million in businessefficiency of cross-border payment services and + Cultural Tourism” demonstrating the Company’s construction.loans to relevant enterprises precisely meeting their facilitating inbound consumption but also promoting the social responsibility in helping regional economic financial needs. In the future the team will continue to internationalisation of payment infrastructure through upgrading through digital technology. optimise financial services develop customised products technology output making a positive contribution to the simplify processes and reduce financing costs striving to integration and development of the global payment become a long-term partner for small- and micro-sized ecosystem. enterprises and deeply integrate into their growth.Newland Environmental Social and Social Performance Employee Responsibilities Governance Report 2024 Inclusivity without boundaries talent without borders With a master’s degree The Company has always adhered to a diverse and inclusive talent philosophy viewing employee 15% 5% or above3% 15% 6% diversity as the core driving force behind organisational innovation and sustainable development. We With a bachelor’s have built a multi-level multi-dimensional team ecosystem.Aged under 30 degree By educational By age background With an associate’s Gender equality and females’ rights protection 38% Aged 31 to 40 degree 44% Aged 41 to 50 Female make up 30% of the Company’s total workforce and 20% of the management team. The Graduate from aAged 51 and above Company supports female employees’ career development through measures such as flexible 74% vocational school or working arrangements and parenting support policies. below Age diversity and cross-generation integration Our team covers multiple generations with 38% of employees under 30 years old 44% between 31 8% 5% and 40 15% between 41 and 50 and 3% above 51 forming a team structure where youthful energy 30% 7% complements seasoned experience. North America Number of male By overseas Latin America By gender region 22% Educational background and professional competence Europe Number of female 58% employees 80% of our employees have a bachelor’s degree or higher and 6% hold a master’s or doctoral degree. Middle East & 70% Africa R&D leadership and functional collaboration 57% of our employees are in technical R&D roles 17% in sales roles 23% in administrative management 2% in finance and 1% in production forming a diverse business structure that aligns 23% Production personnel with the Company’s strategic development needs. 1% 2% Sales personnel17% Ethnicity/race and cultural inclusivity R&D personnel By position Financial personnel Our employees come from 10 ethnic groups including Han Hui and Manchu with ethnic minorities making up 3% of the workforce. The Company also actively recruits international talent with 3% of Administrative the team composed of foreign nationals fostering cross-cultural collaboration and innovation. 57% management personnelNewland Environmental Social and Social Performance Employee Responsibilities Governance Report 2024 Training mechanism: Empowering growth The Company has established a “Capability Enhancement - Resource Support - Growth Assurance” three-in-one support mechanism achieving mutual empowerment for the rapid growth of young employees and optimisation of the Company’s talent pool through systematic resource investment and precise policy matching.Comprehensive guarantee and psychological Career development and mentor guidance support Multi-dimensional incentives and policy synergy Practical empowerment: Set up trainee/intern positions to help young Life support: Assist employees in applying for housing subsidies in Mawei Special subsidies: Provide cash subsidies for emerging talent linked with employees quickly integrate into business scenarios and accumulate practical District to reduce living pressures in the early stages of employment. government talent recruitment policies and benefits.experience.Psychological support: Provide mental health counselling services to address Development incentives: Through projects like the “Emerging TalentDual mentorship system: Implement a “ Business Mentor + Human Resources career concerns and work stress promoting employees’ physical and mental well- Programme” and “Intelligent Vanguard Team” offer opportunities forMentor” joint mentorship system customising career planning paths. Combined being. international training and overseas business involvement broadening career with the “Promotion Evaluation Communication Training and Mentorship” horizons.systems the Company systematically improves professional qualities and Growth ecosystem: Create transparent promotion channels and diverse incentive Special enhancement: Actively conduct diversified training programmes. In expertise. mechanisms encouraging young employees to participate in innovative projects 2024 the Company organised 492 training sessions with 20900 participants to achieve capability breakthroughs and value enhancement.and an average of 16.37 training hours per person.Case Case Smart services enhance efficiency talent drives business growth Agile empowerment talent leadership In 2024 Newland relying on digital technology built an intelligent policy service platform to address key challenges faced From the end of 2020 to the present our subsidiaries’ by talent such as lack of awareness of difficulty in understanding Organisational Efficiency Committee and Agile Coach and complexity in using related policies. The platform integrates Certification Committee have organised five Agile Coach five main functional modules namely policy search intelligent Certification courses with a total of 176 employees receiving matching online application progress tracking and feedback certification and obtaining N-SM Agile Coach certificates and providing a full-process one-stop service. Talent can easily access badges. The Company now has more than 200 employees with the policy services online achieving an efficient and convenient internal and external agile certifications.experience with policy inquiries one-click matching and a fully integrated process.Newland Environmental Social and Social Performance Employee Responsibilities Governance Report 2024 Caring for employee health The Company strictly adheres to the ISO 45001 Occupational Health and Safety Management System standards building a comprehensive health and safety protection mechanism significantly enhancing employee awareness of health and safety and achieving the standardisation and digitisation of occupational health management: 1. Policies standards and 2. Health management measures 3. Safety assurance measures 4. Training and education certifications Facility upgrades: In 2024 the Company updated 350 We hold regular health and safety training every year We have obtained the ISO 45001 System certification Medical insurance: We provide all employees with and developed the Safety Inspection and Hazard accident insurance and hospital medical insurance fire extinguishers and 10 sets of fire-fighting clothing and with an average duration of 3 hours. In 2024 157 new partner with multiple health check-up agencies to offer other emergency equipment. employees participated in pre-job safety training deeply Governance Standards. In 2024 we conducted 200 customised check-up products and grant subsidies for Occupational protection: We regularly test for embedding safety concepts and enhancing employees’ safety hazard inspections throughout the year rectified occupational disease hazards and provide protective awareness and capabilities regarding occupational health all health check-ups. 15 hazards and achieved a 100% rectification rate. equipment. In 2024 the Company recorded zero and safety. Health promotion: We establish a sports association and offer psychological counselling courses. In 2024 we occupational disease cases.We sign the Occupational Health Commitment with conducted 6 health and safety knowledge promotional Emergency drills: In 2024 we conducted typhoon and employees and have updated two regulations including the Safety Management Policy Compilation and added activities covering topics such as heatstroke prevention flood drills as well as high-rise fire evacuation drills to enhance emergency self-rescue capabilities.two new environmental risk items and two emergency and road safety.plans.Listening to employee concerns The Company has built a multi-dimensional communication system centred on an open and transparent communication culture combining offline interactions with online instant feedback to effectively enhance employee engagement and satisfaction: Face-to-face communication Online anonymous Closed-loop management mechanism feedback platform mechanism Fujian Newland AIDC Co. Ltd. We set up the “Social Opinion Mailbox” and (hereinafter referred to as “Fujian “Tree Hole - Employee Feedback Platform”Newland AIDC”) innovatively launched supporting both real-name and anonymousthe “General Manager Friday Breakfast submissions. Suggestions are forwardedThrough the “Collection - Assignment -Tracking - Feedback” full-processMeeting” inviting employee directly to responsible departments for management we ensure that every representatives each week for direct prompt response. In 2024 105 suggestions 100% employee concern is addressed and everycommunication gathering suggestions were received with a response rate issue receives feedback.from the primary level and establishing and a 78% resolution rate. Unresolved dedicated follow-up records to ensure issues are followed up continuously for effective implementation. better solutions.Newland Environmental Social and Social Performance Employee Responsibilities Governance Report 2024 Focusing on employee wellbeing The Company has built a diversified employee care mechanism covering three key dimensions as cultural development material welfare and recreational activities.Cultural development Material welfare Party building integration: Actively recruit Party members regularly organise Party activities and Holiday care: Distribute gift vouchers throughout the year during traditional festivals such as strengthen Party member participation. Spring Festival and Mid-Autumn Festival and also provide birthday cake vouchers.Activity system: Plan traditional festival events during the Spring Festival Dragon Boat Festival Heatwave relief: Collaborate with the labour union and external organisations to provide Mid-Autumn Festival Christmas etc. introducing innovative formats to enhance satisfaction. heatwave reliefs expanding the coverage of cooling supplies.Team building mechanism: Support both intra-departmental and cross-departmental team-building Daily support: Regularly distribute gifts according to seasonal events to strengthen employees’ exchanges promoting team collaboration and cultural integration. sense of belonging.Summer childcare service Employee open days Building a family-friendly Case Case Case solved the challenges faced enhanced sense of belonging workplace by dual-income families In 2024 Newland held two “ Open Day” events attracting over aIn 2024 Newland was selected as a model case for a “Family-Friendly The Company introduced a summer childcare service for employees’hundred employees and their families. The events included visits to ourWorkplace” by the All-China Federation of Trade Unions and four other children covering nearly 200 dual-income families offering free technology exhibition hall and IoT lab tours in our technology park andgovernment departments becoming one of the four selected companies childcare services and adding courses such as “Passing on and Settinginteractive AI courses offering a comprehensive display of the in Fujian Province. The selection was based on the “Six Friendly” Family Rules”. The service not only solved the problem of childcare for Company’s innovative capabilities. The events helped family members standards. Out of 175 cases nationwide 100 were selected to recognise dual-income families but also incorporated family education promoting gain firsthand understanding of our employees’ work environment and companies for implementing measures to balance work and family family values. The satisfaction rate among employees reached 98% the ongoing industry-education integration centre enhancing family responsibilities promote harmonious labour relations and set a making it an innovative practise in building harmonious employee recognition and belonging providing a practical example for employer benchmark for workplace human care. relations.brand building and talent cohesion.Newland Environmental Social and Social Performance Employee Responsibilities Governance Report 2024 Focusing on employee wellbeing Cultural and sports activities Employee centres: The Company has invested over RMB1.6 million to build a 1200㎡ shared employee centre creating 11 functional areas (such as a ping pong room gym and health station) with services regularly available to 18830 visits.Club operations: We have established 9 cultural and sports clubs (covering basketball football badminton yoga etc.) and organised 8 large-scale cultural and sports activities in 2024.Health care: We provide free cervical and breast cancer screenings for female employees and the health station provides ongoing medical support.Case 30th Anniversary of the Long- Distance Running Event The 5th Newland Long-Distance RunningEvent in 2024 with the theme “ThirtyYears Together” featured four types of races including a 20KM individual race and a 3×5KM team relay race attracting 215 employees and their families. The event included custom 30th anniversary commemorative medals with local specialties like Fuzhou fish balls and grass jelly offered as refreshments along with a professional medical team ensuring safety.The event integrated corporate culture and health concepts strengthening team cohesion and family interaction.Newland Environmental Social and Social Performance Quality Management and Product Safety Governance Report 2024 Case Newland Payment Technology used the senior management dialogue mechanism Policies standards and Full-process quality control Chemicals and supply chain to deepen quality culture practises system certifications safety On 25 June 2024 Newland Payment Technology held the fourth “Youzaihui” meeting. Its Quality management system: Based on Development phase: We implement IPD Environmental compliance: We General Manager Lin Jian Senior Vice General Managers Lin Tao and Chen Ming along ISO 90 01:2015 the Quality Manual is (Integrated Product Development) online require suppliers to use lead-free solder with employee representatives conducted a thematic discussion on “Quality Culture”. The developed covering the entire chain of management execute the Product Testing paste and RoHS/REACH compliant meeting focused on the implementation path of quality policies and discussed in depth the development procurement production Management Process Engineering Change materials and prohibit the use of ozone- refinement of quality standards optimisation of closed-loop customer complaint and after-sales. The Quality Guidelines and DRX review mechanisms depleting substances and heavy metals management and the linkage mechanism between customer evaluations and internalManagement Committee oversees and to ensure traceability of development in packaging. assessments. The company reaffirmed the “Speed First Customer Orientation Effectivesupervises clarifying the responsibilities documents. Execution Continuous Improvement” 16-character principle and proposed the construction at each level. In 2024 12 internal quality Procurement phase: We conduct quality Testing and verification: New products of a response system where customer feedback directly drives quality improvements.training sessions were conducted. inspections based on the IQC Inspection are tested by independent laboratories Through direct communication between senior management and frontline employees the Regulations as well as monthly statistics before release to ensure the harmful meeting clarified the quality responsibilities across the entire chain strengthened the on non-conforming products and drive substance content is below threshold improvement framework focused on customer needs and provided a roadmap for enhancing vendors to take corrective actions. levels. All materials in the entire process product reliability and market competitiveness.Dual certification assurance: With ISO Production phase: We establish a process are 100% compliant with environmental 9001 Quality Management System and monitoring system conduct failure analysis standards. ISO 27001 Information Security and improvements according to the Management System certifications we Finished Product Inspection Regulations.ensure product quality and information After-sales phase: We manage customer security. 100% of our terminal devices complaints according to the Customer meet the China UnionPay Payment Complaint Handling Regulations and Terminal Device Security Certification. Device Testing Operation Regulations in a closed-loop manner. In 2024 the Company recorded no major complaints or product recalls.Newland Environmental Social and Social Performance Data Security and Customer Privacy Protection Governance Report 2024 Information security management: We establish an information security management system based on ISO 27001: 2022 and formulate 23 policy documents including Data Security Management Procedures and Network Access Policy covering the entire process of data classification access control backup encryption etc. We have passed international certifications including ISO 27001 ISO 20000 PCI DSS. 100% of our terminal devices meet China UnionPay Security Certification as well as the requirements of the EU GDPR and CERED directives.Policies standards Privacy protection mechanism: Employees sign the Confidentiality Agreement and customers sign confidentiality and certification clauses before data exchange specifying the anonymisation period and breach responsibilities. Core data is protected through dual-level backups while a zero-trust architecture with multi-factor authentication (MFA) is systems implemented. Endpoint Detection and Response and host security protection tools are mandatory.Terminal security: We deploy IPguard anti-leakage systems and antivirus software mandate the installation of host protection tools. In 2024 the frequency of virus scans reached 100 times a 100% increase year-on-year.Network security: We formulate the Network Security Management Procedures and the Privileged Access Full-scenario security Policy and establish intrusion detection and log auditing mechanisms.management Physical security: We classify office areas by security levels according to the Physical Access Control Procedures and implement biometric access control for key facilities.Product security: Our payment terminals are certified with PCI5.X Android POS support EMV standards Technical defence for Visa/Mastercard contactless payments and meet RoHS and 3C certifications.Collaborative defence and co-construction: In partnership with third-party security companies regular and compliance penetration tests attack-defence drills and vulnerability scanning are conducted to build a robust assurance information security defence line.Comprehensive education: New employees are required to complete the Information Security Awareness course. Annual security training is conducted for all employees to continuously Training and strengthen secure development capabilities and awareness of protective measures.Professional qualifications: The Company is holding over 20 qualifications including CCRC capability building ITSS CS4 and its DCMM data management capacity is at Level 4.Newland Customer Service: Protecting Rights Environmental Social and Social Performance Governance Report 2024Building Customer Trust Ecosystem Policies standards and system assurance The Company has formulated policies such as the Bank Card Acquiring Business Management Measures Customer Rights Protection Internal Control Policies and Customer Complaint Handling Regulations strictly regulating service quality and data security. Transaction environments are secured through data encryption access control and compliance management to ensure safety and reliability.Customer feedback and continuous improvement Multiple feedback channels: An around-the-clock customer service hotline online platform and email are provided with dedicated work order follow-up specialists to collect and track customer feedback.Closed-loop management system: We establish a “Pre-Review - Root Cause Analysis - Solution Review - Preventive Improvement” process to ensure efficient resolution of customer requests.Satisfaction improvement: Customer satisfaction reached 98.3% in 2024 according to online evaluations and regular surveys of continuous service optimisation.Service network and response mechanism Service coverage: The Company has established 13 sales service centres 5 maintenance hubs and spare parts warehouses nationwide ensuring rapid response to customer needs.Digital services: We set up a “Product Service Management Platform” providing online repair request channels through the “Hi Xiaoshi” mini-programme and WeCom enabling real-time reception and processing of customer requests.Transparent processes: Customers can track repair progress through the official website and WeChat public account ensuring that the entire service process is traceable.Newland Environmental Social and Social Performance Sustainable Supply Chain Governance Report 2024 Supplier review mechanism Supply chain training system The Company has established a supplier admission and dynamic Build an internal-external collaborative training ecosystem evaluation system.Admission review: Suppliers are vetted through four levels of screening i.e. qualification verification Internal training: New employees undergo 4 weeks of full-process procurement training. In 2024 6 (business licences industry certifications financial compliance) agent authorisation checks on-site focused procurement training sessions were held synchronised between the headquarters and regional inspections (supply chain capabilities production technologies) and sample testing ensuring that suppliers offices. Quarterly procurement case seminars are also held to strengthen practical skills.are legal and compliant and meet quality standards. Supplier empowerment: We provide specialised training on compliance standards system operations etc.Roster-based management: Qualified suppliers are included in the Qualified Supplier Roster which is In 2024 35 sessions held attracting nearly 600 participants. The “Fuyao Plan” offers policy and technical updated regularly to ensure continuous validity of partner qualifications. support to help ecological partners enhance core competitiveness.Performance evaluation: Suppliers are evaluated annually based on supply quality timeliness service and Quality training: 12 quality training sessions were held for suppliers in 2024 with over 900 participants.innovation capability. Suppliers with no transactions for six consecutive months or those failing to meet the A supplier conference was also held to unify goals and promote improvements in both supply chain quality standards will have their cooperation terminated. and efficiency.Graded application: Outstanding suppliers are awarded additional orders while substandard suppliers are given deadlines for improvement or excluded driving continuous optimisation of the supply chain.Case Smart industry chain drove the future On 25 November 2024 Newland AIDC officially launched the first “Industrial Distributor Product Technical Training Class” aiming to empower supply chain partners through systematic courses. The class focused on the implementation of product pre-concept covering technical analysis practical application scenarios and marketing strategies deepening distributors’ understanding of product performance and value and enhancing their technical service capabilities and market confidence. Through a combination of theoretical and practical courses the training accelerated technological collaboration along the industry chain enhanced distributor terminal service efficiency and promoted efficient collaboration across the supply chain supporting the creation of a stable and innovative industrial ecosystem.Newland Environmental Social and Social Performance Sustainable Supply Chain Governance Report 2024 Supply chain management system Drive efficient supply chain collaboration through institutional and technological innovation ? Policies and standards: We formulate the Supplier Management Procedures covering the entire process of admission evaluation and performance review. For key components we include 2 to 3 suppliers of the same level as well as backup suppliers to ensure supply stability.? Digital upgrade: We introduce a cloud warehouse solution to monitor inventory automate sorting and enable precise delivery reducing resource waste.? Sustainable development: We strictly follow green procurement standards require suppliers to use environmentally friendly technologies and fulfil social responsibilities prohibit direct procurement of minerals from mining smelting or refining plants and conduct annual due diligence on conflict minerals. No minerals from conflict regions have been found in the supply chain.Green factories The Company deeply integrates ESG principles into supply chain management reducing its own environmental footprint while guiding downstream manufacturers towards sustainable models. Through systematic data-driven and routine management the Company achieves a collaborative improvement in environmental performance and production efficiency.The Company’s manufacturing partners strictly follow green manufacturing system standards: ? They have built and been continuously operating an environmental management system that complies with ISO 14001 and hold the Environmental Management System certification.? They adhere to the core principles of “compliant operations energy-saving and consumption reductionfull-coverage governance pollution prevention and continuous improvement” set quantifiable energy consumption targets and implement a graded environmental factor control mechanism.? They have been preparing the Environmental Impact Assessment Report and obtaining approval and filing from local ecological and environmental authorities to ensure full-cycle environmental compliance for construction projects.? The implement an environmental protection training system for all employees creating a collective consensus on green development.01 Corporate Governance(SDGs 16 17) Risk Management and Internal Control 02 Compliance Governance (SDGs 9 16) Performance Business Continuity03 (SDGs 9 12) Building a Solid Foundation with Compliance Advancing Steadily Towards the Future 04 Stakeholder Communication and Cooperation (SDGs 16 17) Party Building Governance and Business 05 Ethics (SDG 16)Newland Environmental Social and Governance Performance Corporate Governance Governance Report 2024 Organisational structure The Company strictly adheres to laws and regulations such as the Company Law Securities Law and Code of Corporate Newland Digital Technology Co. Ltd.Governance for Listed Companies and has established a corporate governance system with clear responsibilities and effective checks and balances. The General Meeting of Shareholders as the highest authority oversees the Board of Directors and the Board General meetings of Primary of Supervisors forming a governance Audit Committee shareholders subsidiaries structure where decision-making execution and supervision are independent of each other. Board of Supervisors Strategy Committee The Board of Directors is responsible for strategic decision-making and operational Board of Directors management. It is supported by four Nomination specialised committees - the Strategic Committee Committee Audit Committee Nomination Committee and Remuneration and Appraisal Remuneration Committee which professionally review and Appraisal Committee major corporate matters. The Board of Supervisors exercises its supervisory functions in accordance with the law to ensure the Company’s proper operation.The current organisational structure encompasses three centres and eight functional departments. Through a systematised decentralisation and checks-and- balances mechanism the Company effectively protects the legal rights of all shareholders achieving an organic unity between the scientific nature of governance decisions and operational efficiency.Beijing Yada Communications Network Co. Ltd.Newland s financial technology segment (MyBank Small Loan MyBank Factoring Zhoulian Information) Shanghai Shanhao Intelligent Technology Development Co. Ltd.Fujian Postar Network Technology Co. Ltd.Fujian Newland Software Engineering Co. Ltd.Fujian Newland AIDC Co. Ltd.Fujian Newland Payment Technology Co. Ltd.Securities Investment Department Human Resources Department Public Affairs Department Digital Department Operations Department Audit Department Legal Department General Manager s Office Finance Centre Administration Centre Innovation & Development CentreGovernance NewlandEnvironmental Social and Corporate Governance Governance Report 2024 Performance Composition of the Board of Directors The Company’s Board of Directors Board of Supervisors and senior management team currently consist of 10 members with 20% of them being women. The Company continuously encourages female employees to improve their professional abilities through a well-established career development mechanism striving to optimise the gender balance in the decision-making structure.Our Board members demonstrates strong professional qualifications. 67% of non-independent directors hold a master’s degree and all have senior engineer titles forming a decision-making core with both academic depth and practical experience. Independent directors’ professional backgrounds cover areas such as finance and law ensuring that the strategic planning and core business needs are precisely aligned while also guaranteeing that the decision-making process complies with regulatory norms and market dynamics.Governance results Awards of the Board of Directors Top 100 Board of Directors with Growth Potential by Securities Times at the 18th China Listed Company Value Ranking 300 Most Valuable Board of Directors among Listed Companies by Tonghuashun 300 Most Popular Board Secretary of the Year among Listed Companies by Tonghuashun 2 2024 Golden Medal Award for Board Secretary of the Year general meetings of 8 meetings of the Board of 6 meetings of the Board of shareholders Directors Supervisors Gold Medal for Board Secretary at the 20th New Fortune Ranking 17 proposals reviewed and 48 proposals reviewed and 14 proposals reviewed and approved approved approvedNewland Environmental Social and Governance Performance Risk Management and Internal Control Compliance Governance Report 2024 Compliance management system and Internal training reinforces risk control Risk prevention and control regulations technological innovation capabilities The Company has established a comprehensive compliance Driven by both regulations and technologies: We strictly system with risk prevention and control at its core covering Anti-fraud capacity building: In 2024 the Company in adhere to laws and regulations such as the Regulation on the employee code of conduct information security and internal collaboration with the police held activities such as themed Supervision and Administration of Non-Banking Paymentcontrol mechanisms: movie screenings and special lectures under the theme “WorkInstitutions establish a compliance department and build anCode of conduct: We formulate the Employee Code of Together to Combat Fraud” covering illegal fundraising intelligent monitoring system to achieve real-time transaction Professional Conduct and Employee Disciplinary Policies identification and strategies to counter telecom fraud enhancing behaviour review and risk warning.clarifying compliance requirements for employees in overall employee risk awareness.Anti-money laundering technology upgrade: We deploy interactions with stakeholders such as customers and suppliers Long-term awareness mechanism: We require all employees customer risk assessment transaction monitoring and watchlist and emphasising adherence to laws regulations and business to install the “National Anti-Fraud Centre” APP establish a ethics. filtering systems. In 2024 using technologies like name monthly case analysis mechanism update the anti-fraud similarity models AI risk sample analysis and optimised risk Internal control mechanism: We set up an internal control knowledge base and reinforce employees’ real-time risk control models the accuracy of identifying suspicious team and conduct annual internal audits. Simultaneously we warning capabilities.transactions improved by 46% compared to 2023.construct an “Information Security Risk Assessment Control Internal training system: We strengthen employees’Closed-loop risk control network: We form a full-chainSystem” with risk identification and classification compliance awareness through legal and compliance training protection system of “Regulations - Technologies - Response” management coordinated by the Information Security and build a transparent governance culture with the disclosure with layered customer ratings and feature identification Committee. of annual compliance reports.effectively eliminating monitoring blind spots supporting Reporting channels: We provide multiple channels such as compliant business expansion.offline mailboxes and online OA reporting portals and require that every report must be verified and every accountable person must be punished.Newland Environmental Social and Governance Performance Business Continuity Governance Report 2024 Business continuity assurance system With ISO 22301 certification as the core the Company has built a cloud redundancy architecture and data primary-backup disaster recovery system enabling minute-level switching. Dynamic risk control and graded responses along with improved BCP (Business Continuity Plan) and AB-role remote support ensure continuous optimisation and enhance business resilience. 0102030405 System certifications Data security and disaster Management processes Emergency response and Continuous improvement and infrastructure recovery mechanism and risk control organisational support mechanism ? Through ISO 22301 Business ? The database operates in a ? Regular reviews: Subsidiaries ? Major customer complaints are ? Departments that do not Continuity Management master-backup mode with regularly conduct operational handled by a disposal team led by meet performance standards System certification the daily full backups stored in an analyses and QBR (Quarterly the General Manager of the are required to develop Company has established a offsite secure centre. Business Review) meetings to Customer Service Centre with improvement plans promote standardised management ? Critical systems implement dynamically identify risks and time-bound processing and direct closed-loop optimisation framework. active-passive fault tolerance deploy contingency plans. reporting to the General Manager. and ensure continuous ? We adopt Alibaba Cloud’s solutions to ensure ? Risk management: In accordance ? Non-technical scenario enhancement of business AWS to build an N+1 uninterrupted service. with the Comprehensive Risk contingency plans: We develop resilience.redundancy solution where Management Implementation special BCP plans for natural the primary and backup Measures the Company disasters and other events servers synchronise data in regularly conducts risk designate AB roles for key real-time and the failover classification assessments and positions and support remote work time is controlled within formulates graded response and seamless personnel transitions.minutes. strategies.Newland Environmental Social and Governance Performance Stakeholder Communication and Cooperation Governance Report 2024 The Company places high importance on the rights of minority shareholders positioning them at the core of corporate governance. We are committed to ensuring equal participation in decision-making transparency in information access and fairness in dividend distribution among Protection of shareholders. We ensure that minority shareholders can timely understand the Company’s operations and participate in major decisions through regular information disclosures shareholder meetings and effective communication channels.minority The Company has established and implements a reasonable dividend policy. In 2024 we distributed dividends twice totalling RMB556 shareholders million. The Company has set up a dedicated body to protect shareholders’ rights particularly to prevent the potential harm to minority shareholders’ interests by controlling shareholders while ensuring that the operation of the shareholders’ meeting is fair and transparent fully respecting shareholders’ rights to speak and vote.The Company enforces strict regulations on the actions of controlling and major shareholders to protect the common interests of all shareholders Behaviour of ensuring the soundness of corporate governance and the coherence of strategic execution. We ensure that the actions of controlling shareholders do not adversely affect the Company’s governance structure and through the public information platform of the shareholders’ meeting safeguard controlling and all shareholders’ right to participate in decision-making. In strategic adjustments and financial decisions the Company always takes shareholder major interests as the starting point ensuring transparency in the process and fairness in the results. At the same time we strengthen internal governance maintain the Company’s market image and reputation and through clear shareholder protection clauses ensure that the actions of controlling shareholders shareholders do not harm the interests of minority shareholders thus guaranteeing equality of shareholder rights and shared decision-making governance.The Company strictly fulfils its information disclosure obligations. Through authoritative platforms such as Securities Times China Securities Journal Shanghai Securities Journal and cninfo.com.cn key information such as business dynamics external guarantees and mergers and Standard acquisitions are disclosed in a timely manner. In 2024 a total of 99 announcements and supporting materials were published ensuring that the disclosure information is truthful accurate and complete thus protecting shareholders’ right to know.In maintaining investor relations the Company has built a diversified interaction mechanism. In 2024 the Company responded to 78 investor value delivery inquiries on irm.cninfo.com.cn held one results briefing and received the visits by 39 institutions. Innovatively using visual communication formats the Company enhances information reach efficiency by regularly publishing reports and business overviews through its official WeChat account. We have deepened cooperation with financial media to timely communicate strategic progress and industry insights enhancing investors’ understanding and recognition of the Company’s value.Newland Environmental Social and Governance Performance Party Building Governance and Business Ethics Governance Report 2024 Case Case Party building leadership Under the leadership of the Party Newland has deeply integrated Party Newland’s Party building Led industry-academia- The Company held legal education event with building with the Company’s production and operations innovatively research integration prosecutors to strengthen compliance and guard implementing the “Party Building + Talent + Industry” model to enhance the influence of the Party building brand. Through political development guidance talent team building activation of innovation momentum On 27 December 2024 Newland in collaboration with the Party Branch of the social responsibility fulfilment resource sharing and technology Information Centre of Fuzhou Municipal Special Equipment Inspection Institute In 2024 Newland in collaboration with the procuratorates and federations of empowerment Newland has achieved comprehensive improvements inheld a Party building joint event themed “Promoting Progress through Joint industry and commerce of Fuzhou City and Mawei District held a legalthe organisational strength of Party branches corporate managementParty Building Advancing Together for Development”. The two sides visited education event attended by 670 Board members and core employees. The event capabilities and social service capabilities. The Party Committee has the exhibition hall and laboratory of Newland AIDC to learn more about the core focused on high-incidence corporate crimes such as embezzlement commercialreceived multiple honours including the “National ‘May Fourth’ Redtechnologies of the IoT and the results of digital transformation. They also bribery and infringement of trade secrets. Through case studies itFlag Youth League Branch” and has cultivated a group of advanced discussed how Party building can empower industrial upgrades. At the seminar systematically interpreted the legal boundaries of occupational crimes andParty members. In 2024 Newland was recognised as the “Municipalboth sides shared their Party building model practises and signed the Party Co- criminal risks. Experts from procuratorates based on new business scenariosAdvanced Primary-level Party Organisation” showcasing its outstanding Building Agreement clearly defining areas for deepened collaboration in provided in-depth insights into the key points of compliant operations and set results and exemplary case in Party governance.technological breakthroughs standard formulation and talent development. This behavioural boundaries for businesses. This educational initiative empowered initiative will drive the dual empowerment of Party building and business the building of business ethics through legal education creating a compliance Enhancing both integrity and business injecting the “Red” energy into the intelligent detection of special equipment ecosystem where corruption is deterred prevented and disincentivised.The Company has built a business ethics defence line with a “zero and the development of the digital economy.tolerance” attitude and has incorporated anti-corruption into the core governance system. All members of the management team have signed the Officer Conduct Commitment clearly prohibiting bribery kickbacks and other corrupt behaviours and incorporating integrity performance into performance evaluations. Through the Officer Management Measures a regular supervision mechanism has been established.Combined with quarterly audits the anonymous reporting platform and specialised integrity training the full process of power operations is made transparent. In 2024 the Company recorded zero incidents of officer violations. By driving both system rigid constraints and moral awareness the Company has fostered an organisational culture of “integrity and responsibility” injecting integrity into the Company’s sustainable development.Newland Environmental Social and Appendices About This Report Governance Report 2024 Key reminders Principles for preparation The Board of Directors and all directors of the Company guarantee that the contents of this report Materiality: In accordance with standards and administrative guidelines this report focuses on contain no false statements misleading representations or significant omissions and assume joint and discloses ESG topics that have a material impact on the Company’s sustainable development and several responsibility for the authenticity accuracy and completeness of this report. and stakeholders’ decisions ensuring that this report highlights key information to help readers quickly understand the Company’s core ESG topics and key initiatives.Reporting scope Quantification: ESG-related performance is presented with specific data and indicators whenever The reporting period spans from 1 January 2024 to 31 December 2024 with certain information possible providing quantifiable basis for internal management and external evaluation making this retroactively covering 2023 and earlier. This report covers Newland Digital Technology Co. Ltd. report more scientific and convincing.and its subsidiaries. Balance: This report takes into account the needs of different stakeholders fully and objectively presenting the Company’s efforts in all areas of ESG including environment employees data security and governance to ensure the authenticity and fairness of this report.Basis of preparation Consistency: This report maintains uniformity and coherence in data collection indicator This report is prepared based on the Guidelines No. 3 for Self-Regulation of Listed Companies - definitions calculation methods and structure and terminology following industry-recognised Compilation of Sustainability Report and Guidelines No. 17 for Self-Regulation of Listed standards and frameworks.Companies - Sustainability Report (Trial) of the Shenzhen Stock Exchange and the Corporate Sustainability Disclosure Standards - General Standards (Trial) jointly issued by the National Data explanation Development and Reform Commission Ministry of Industry and Information Technology Ministry of Finance Ministry of Housing and Urban-Rural Development Ministry of Transport The information and data in this report mainly derive from the Company’s internal data collection Ministry of Railways Ministry of Water Resources National Radio and Television Administration systems work reports and publicly available information such as the Company’s annual reports and Civil Aviation Administration of China with particular reference to the following reporting and information released by authoritative media. Unless otherwise specified the amounts in this standards: report are presented in RMB. All content and data disclosed in this report have been reviewed by the Company’s Board of Directors.Global Sustainability Standards Board (GSSB) GRI Sustainability Reporting Standards The United Nations Sustainable Development Goals (SDGs) Contact information The International Organisation for Standardisation (ISO) Guidance on Social Responsibility Tel.: 0591-83979997 (ISO 26000) Email: newlandzq@newland.com.cn Address: Newland Technology Park No. 1 Ruxi West Road Mawei District Fuzhou City Fujian Province China Contact: Securities Department Newland Digital Technology Co. Ltd.Newland Environmental Social and Appendices Key ESG Performance Table Governance Report 2024 Key Operating Performance Table Key Corporate Governance Performance Table Key Performance Indicator Unit 2022 2023 2024 Key Performance Indicator Unit 2022 2023 2024 Total assets RMB100 million 115.87 132.00 127.04 Number of meetings of the Board of Directors Operating revenue RMB100 million 73.70 82.50 77.45 Time 9 9 8held Net profit attributable to parent company RMB100 million -3.82 10.04 10.10 Number of meetings of the Board of Supervisors Net cash flow from operating activities RMB100 million 10.45 22.27 8.63 Time 3 3 6held Cash dividend RMB100 million 0 5.07 5.56 Basic earnings per share RMB1/share -0.38 0.99 1.00 Number of general meetings of shareholders held Time 2 2 2 Taxes paid RMB100 million 2.36 2.48 3.30 Number of meetings of the Board of Directors’ Time 1 1 1 Strategy Committee held Number of meetings of the Board of Directors’ Time 1 1 1 Nomination Committee held Key Innovation Performance Table Number of meetings of the Board of Directors’ Time 1 1 1 Remuneration and Appraisal Committee held Number of meetings of the Board of Directors’ Time 3 3 4 Key Performance Indicator Unit 2022 2023 2024 Audit Committee held R&D investment RMB100 million 6.57 6.32 6.64 Number of directors Person 5 5 5 R&D investment as a percentage of total %9.98.38.6 revenue Number of independent directors Person 2 2 2 Number of R&D personnel Person 3658 3765 3804 Number of R&D personnel with a Person 186 207 230 Number of female Board members Person 1 1 1 master’s degree Number of invention patents granted Item 36 54 19 Number of results briefings held Time 0 2 1 Number of invention patents applied for Item 64 66 78 Total number of institutional investor visits Number of valid invention patents Item 248 284 230 Time 2 2 1received Number of certificates Item 5 5 8 Number of standard setting projects led or Total number of announcements and supporting Item 7 8 8 Copy 85 78 99 contributed to materials disclosedNewland Environmental Social and Appendices Key ESG Performance Table Governance Report 2024 Key Environmental Performance Table Key Social Responsibility Performance Table Key Performance Indicator Unit 2022 2023 2024 Key Performance Indicator Unit 2022 2023 2024 Occupational Health and Safety Energy Utilisation Safety education coverage rate % 100 100 100 Purchased electricity kWh 7877700 8493190 9248901 Number of occupational disease cases Case 0 0 0 Data centre electricity consumption kWh - 631852 676837 Training and Education GHG Emissions Total training investment RMB10000 - - 194.56 Total emissions tCO2e - - 15485.28 Total number of employees trained Person - 13668 20900 Scope 1 tCO2e - - 775.30 109723.6 Total training hours Hour - 61252.5 Scope 2 tCO2e - - 3425.84 Number of users of the Company’s online Person - 99964 22455 Scope 3 tCO e - - 11284.14 learning platform2 tCO e/RMB1 Average training hours per employee Hour/person - 5.98 19.372 Emission intensity million of - - 2.00 revenue Supply Chain Management Water Resources New suppliers screened using environmental % 100 100 100 criteria Total domestic wastewater discharge Tonne 34516 31805 30875 New suppliers screened using social criteria % 100 100 100 Office water consumption Tonne 51773 47707 46313 Number of supplier training sessions Time - - 12 Waste Employment Total hazardous waste generated Tonne 0 0 0 International employees hired Person 6620 6561 6703 Total non-hazardous waste generated Tonne - 28 23 Percentage of female executives % 20 20 20 Percentage of employees with a bachelor’s Company vehicle scheduling Time 1840 2024 2306 % 70.38 77.8 80 degree or higherNewland Environmental Social and Appendices GRI Index Governance Report 2024 Corresponding Carbon Neutrality and Climate Corresponding Section 025 GRI Standards Disclosure ltem Page in This Change Response in This Report Report Resource Recycling and Pollution 027 GRI 2: General Disclosures Control The organisation and its reporting practises Employee Responsibilities 039 2-23 Policy commitments 2-1 Organisation details About Newland 003 Data Security and Customer 043 Entities included in the Privacy Protection 2-2 organisation’s sustainable About This Report 054 Sustainable Supply Chain 046 development report Risk Management and Internal 050 Reporting period frequency and Control Compliance 2-3 About This Report 054 contact point 2-27 Compliance with laws and regulations About This Report 054 Key ESG Performance 2-4 Restatements of information 055 Stakeholder engagement Table 2-29 Approach to stakeholder engagement Stakeholder Communication 014 Activities and workers GRI 3: Material Topics Stakeholder Activities value chain and other 014 2-6 communication 3-1 Process to determine material topics ESG Topic Materiality Assessment 015 business relationships Sustainable Supply Chain 046 3-2 List of material topics ESG Topic Materiality Assessment 015 Employee Responsibilities 037 Economy 2-7 Employees Key Social Responsibility 056 GRI 201: Economic Performance Performance Table Direct economic value generated and Governance 201-1 Key Operating Performance Table 055distributed Governance structure and 2-27 Corporate Governance 048 Financial implications and other risks and composition 201-2 ESG Risk Management Mechanism 013opportunities due to climate change Nomination and selection of the 2-10 Corporate Governance 048 Defined benefit plan obligations and highest governance body 201-3 Employee Responsibilities 040other retirement plans Role of the highest governance GRI 203: Indirect Economic Impacts 2-14 Chairman’s Message 006 body in sustainability reporting Infrastructure investments and services Rural Revitalisation and Social Strategy policies and practises supported Contribution Chairman’s Message 006 GRI 205: Anti-corruption Statement on sustainability 2-22 ESG Development Communication and training about anti- Party Building Governance and strategy 010 205-2 053 Philosophy and Strategy corruption policies and procedures Business EthicsNewland Environmental Social and Appendices GRI Index Governance Report 2024 Environmental Social GRI 302: Energy GRI 401: Employment Energy consumption within the Key Environmental 302-1 056 Benefits provided to full-time employees that are organisation Performance Table 401-2 Employee Responsibilities 040not provided to temporary or part-time employees GRI 303: Water and Effluents GRI 403: Occupational Health and Safety Interactions with water as a shared Resource Recycling and 303-1 028 Occupational health and safety management resource Pollution Control 403-1 Employee Responsibilities 039 system Key Environmental 056 403-3 Occupational health services Employee Responsibilities 039 Performance Table 303-5 Water consumption 403-5 Worker training on occupational health and safety Employee Responsibilities 039 Resource Recycling and 028 Pollution Control Employee Responsibilities 039 GRI 304: Biodiversity 403-6 Promotion of worker health Key Social Responsibility 056 Performance Table Significant impacts of activities Land Use and Ecological 304-2 029 Workers covered by an occupational health and products and services on biodiversity Conservation 403-8 Employee Responsibilities 039 safety management system GRI 305: Emissions Key Social Responsibility Key Environmental 403-10 Work-related ill health 056 305-1 Direct (Scope 1) GHG emissions 056 Performance Table Performance Table GRI 404: Training and Education Energy indirect (Scope 2) GHG Key Environmental 305-2 056 Employee Responsibilities 038 emissions Performance Table 404-1 Average hours of training per year per employee Key Social Responsibility Other indirect (Scope 3) GHG Key Environmental 056 305-3 056 Performance Table emissions Performance Table Programmes for upgrading employee skills and Key Environmental 404-2 Employee Responsibilities 038 305-4 GHG emissions intensity 056 transition assistance programmes Performance Table GRI 405: Diversity and Equal Opportunity GRI 306: Waste Corporate Governance 048 405-1 Diversity of governance bodies and employees Management of significant waste- Resource Recycling and Employee Responsibilities 037 related impacts Pollution Control GRI 412: Supplier Social Assessment Resource Recycling and 306-5 Waste directed to disposal 027 New suppliers that were screened using social Pollution Control 412-1 Sustainable Supply Chain 046criteria GRI 308: Supplier Environmental Assessment GRI 416: Customer Health and Safety New suppliers screened using Assessment of the health and safety impacts of Quality Management and 308-1 Sustainable Supply Chain 046 416-1 042 environmental criteria product and service categories Product SafetyNewland Environmental Social and Appendices GHG Accounting Certificates Governance Report 2024Newland Environmental Social and Appendices GHG Accounting Certificates Governance Report 2024Newland Environmental Social and Governance Report 2024 8. Which topics in this year’s ESG Report are of most interest to you We sincerely appreciate your time and attention in 1. What is your relationship with Newland □ Climate change response and carbon neutrality reviewing Newland Environmental Social and □ General employee □ Management member □ Government or □ Pollutant discharge and waste management Governance (ESG) Report 2024. In our continued effort regulatory authority □ Business partner □ Land use and biodiversity to provide more professional and valuable information to □ Supplier □ Shareholder □ Public or media □ Customer □ Environmental management policies □ Energy utilisation □ Water you and other stakeholders we kindly invite you to scan 2. How would you rate the overall quality of this report resource management the QR code and complete the relevant questions in the □ Excellent □ Good □ Fair □ Poor □ Very poor □ Circular economy □ Rural revitalisation and social contribution feedback form. We deeply welcome and look forward to 3. How would you rate the clarity accuracy and completeness of the □ Technological innovation □ Supply chain management □ Business your valuable suggestions and comments. information indicators and data disclosed in this report continuity □ Excellent □ Good □ Fair □ Poor □ Very poor □ Customer service □ Product safety and quality 4. How would you rate Newland’s performance in environmental □ Data security and customer privacy protection □ Diversity and responsibility inclusion □ Excellent □ Good □ Fair □ Poor □ Very poor □ Employee training and career development □ Occupational health and 5. How would you rate Newland’s performance in social safety responsibility □ Employee care and benefits □ Corporate governance □ Excellent □ Good □ Fair □ Poor □ Very poor □ Risk management and internal control compliance 6. How would you rate Newland’s performance in governance □ Stakeholder communication and cooperation □ Business ethics responsibility 9. Are there any additional topics you would like to see covered in this □ Excellent □ Good □ Fair □ Poor □ Very poor report 7. How would you rate the layout and design of this report ___________________________________________ □ Excellent □ Good □ Fair □ Poor □ Very poor 10. Do you have any comments or suggestions regarding our ESG report or our ESG and sustainability management efforts ___________________________________________