2025

Environmental Social and

Governance ReportCONTENTS

Introduction Appendices

Chairperson's Message 01 About This Report 70

About Newland 02 Key ESG Performance Indicator Table 71

2025 ESG Highlights 05 Sustainability Standards Index 73

GHG Verification Statement 76

Report Release and Contact Information 77

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance

ESG Management Framework 07 Innovation Investment and Technological 14 Climate Change Response and Carbon 19 Rural Revitalisation and 32 Corporate Governance Organisational 61

Achievements Neutrality Social Contribution Structure

ESG Strategy and Risk Management 08

Supporting the Digital Transformation 17 Resource Recycling and Pollution 23 Employee Empowerment and Stakeholder Communication and of the Real Economy Control Circular Economy Care Diversity and Inclusion 36 Cooperation Protection of Minority 63

Materiality Assessment and Management 10 Shareholders' Rights

Land Use and Ecological Conservation 29 Quality Management and Product Safety 46

Environmental Management Policies Business Ethics and Compliance 65

Business Ethics

Data Security and Customer

Privacy Protection 52

Customer Service 55

Sustainable Supply Chain 56

Equal Treatment to SMEs 582025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Chairperson's Message

Dear partners investors and respected members of the community

Newland upholds its mission of "Technological Innovation for the Benefit of Humanity" and deeply integrates sustainability into the core of its strategy.Aligning with the United Nations Sustainable Development Goals (UN SDGs) and mainstream ESG standards we have built a sustainability framework

around four key strategies fulfilling our broad responsibilities toward the environment employees and society.We use frontier technologies such as artificial intelligence (AI) to drive innovation in products and services and continuously deploy innovative solutions

to advance the digital upgrading of industries. We are building an ecosystem that attracts nurtures and incentivises outstanding talent and creating

a safe healthy and inclusive workplace. Furthermore we integrate environmental management into the entire operational process implement a series

of measures for energy saving water conservation waste reduction and resource recycling and enhance resource utilisation efficiency in our

operations. Through our technological capabilities we empower industrial and community development actively giving back to society and creating

shared value.Looking ahead Newland will proactively elevate its strategic approach to drive long-term ESG development and strengthen the foundation for sustainable

growth. We will further enhance ESG's strategic role by embedding its principles throughout our overall development plan with the Board of Directors'

oversight and guidance reinforced and core ESG objectives and performance indicators included in our evaluation system to drive a practical integration

of sustainable practices across all operations. By partnering with diverse stakeholders we aim to cultivate a mutually beneficial ecosystem and exemplify

our role as a technology company in meeting the responsibilities of the times.

012025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Honours and Awards

About Newland

Newland Digital Technology Co. Ltd. (hereinafter referred to as "Newland" "the Company" or

"we") was established in Fuzhou Fujian Province in 1994. It was listed on the main board Top-tier Qualifications & National Recognition Authoritative Recognition & Provincial and Municipal-level Platforms

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. * National level Manufacturing Single Product Champion * Industrial Leading Enterprise in Fujian Province

* National Intellectual Property Demonstration Enterprise * "Gazelle" Enterprise in the Core Industries of Digital

The Company takes serving the national "Digital China" strategy as its mission and is committed * Industrial Technology Foundation Public Service Economy in Fujian Province

to empowering the development of the digital economy industry through technological Platform * Leading Software Enterprise in Fuzhou City

innovation. Relying on years of accumulated customer resources and industry experience in * Key Laboratory of IoT Intelligent Perception and Cognitive

Technology in Fujian Province

segmented fields the Company leverages core technological advantages such as AI edge * Collaborative Innovation Platform in

computing and big data to continuously consolidate its cornerstone industries actively Fuzhou-Xiamen-Quanzhou National Independent

cultivate innovative tracks and deepen its global layout. The Company's business covers more Innovation Demonstration Zone

* Industry Technology Innovation Centre in Fuzhou City

than 130 countries and regions worldwide continuously delivering China's digital

transformation solutions to countries along the "Belt and Road" initiative. Facing the vast

opportunities of the digital economy the Company leverages central initiatives such as e-CNY

and trusted digital identities to continuously refine its industry ecosystem. Fully engaging in

China's twin waves of digital industrialisation and industrial digitisation we strive to position Industry Influence & Brand Awards Technological Strengths & Innovation Achievements

ourselves as a pioneering enterprise for "Digital China".* Golden Pine Award: Brand Influence Enterprise * East China Region Gold Award at Kunpeng Innovation

* 2025 Industry Influential Brand Competition

Key Performance Highlights * Outstanding "Agriculture Rural Areas and Farmers" and * East China Region Silver Award at Ascend AI

SME Financial Service Award Innovation Competition

* "Turning Points into Value" Financial Data Governance * AI service platform selected as a dual-database model

Total revenue was Net profit attributable to parent Taxes paid were RMB 353 case Award * First AI enterprise in Fujian Province to achieve Level

RMB 8 . 7 5 8 billion company excluding non-recurring million with an A rating in tax * 2025 Outstanding Product Innovation Leadership Award1.049 1 Capability Certification items was RMB billion

up 1 3 . 0 8 % year on year. payment for 9 consecutive years. * Included in the AI Agent Industry Landscape 1.0 of up 6 . 1 9 % year on year. China Academy of Information and Communications

Technology

* Listed in the Large Model Application & Delivery

Approx. RMB 2 5 0 million of cash dividend (RMB 2 . 5 0 Supplier Directory per Total cash dividend (including share * Contributed to DataOps Practice Guide (3.0)

10 shares tax-inclusive) for 2025 alongside a share repurchase repurchases) at 6 2 . 2 9 % of net profit * AI-based Image Recognition Technology awarded

of RMB 3 8 0 million. attributable to shareholders. Excellence Award for High-value Patent Portfolio

Project in Fuzhou City

* Face Recognition Method and System recognised as an

excellent patent in Fuzhou City

022025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Newland's Globalisation Development Strategy Newland's Business Footprint Across 130+ Countries

and Regions Worldwide

Actively integrate into China's new "Dual Circulation" development strategy Globalisation 1.0 Globalisation 2.0

Establish localised teams in multiple locations worldwide Business Full-spectrum

Set up branch companies and business development service centres globalisation localisation of

Continuously improve localised service capabilities technology services

and organisations

The Netherlands

Canada UK Germany

Romania

France Croatia Mongolia

Portugal Italy Türkiye South Korea

Georgia

United States United States Spain Japan

(San Francisco) (Atlanta) Morocco JordanLibya Headquarters

Qatar in China

Mexico Egypt United Nepal Bangladesh Taiwan China

Arab Emirates

Sudan Saudi Arabia Thailand

Hong Kong and Macao China

India Vietnam

Venezuela Nigeria Ethiopia Cambodia

Cameroon Singapore

Uganda Kenya Malaysia

Rwanda

Congo Tanzania Indonesia

Zambia

Brazil Zimbabwe

Branches and

Subsidiaries South Africa

Uruguay

Chile

Offices

Argentina

Service locations

Business scope2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

SMEs Banking Consumers

Merchant Operations and Value-added Services

Transaction volume reached RMB2.25 trillion with a

single-day peak of over 40 million transactions and more

than 6.1 million active merchants

Payment services Value-added services

Digital Capabilities

Daily data processing volume exceeded 200TB and total data

High-frequency data storage surpassing 60PB Sector-specific scenario

processing and analysis

Visual perception algorithms

algorithms

Smart terminals

POS devices Annual terminal shipments in the tens of Scanning

millions with edge computing capacity ranging devices

from 1?T to 38?T

042025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

2025 ESG Highlights

Innovation Environment

Total invention patent applications:

Conducted 1 6 1 technical training sessions Online approval requests increased by 4 4 . 1 8 % year on year 93

Awarded 1 7 honours in technology invention innovation and 2 0 shuttle bus routes promoted low-carbon commuting for employees

related categories 887

R&D investment reached RMB 6 5 1 million accounting for 7 . 4 3 % Completed over 6 5 0 0 personnel certification and labour contract signings

of revenue

3 Conducted 2 8 specialised environmental training sessions covering Total R&D personnel numbered 5 9 4 representing 5 7 . 7 3 % 45 8 participants

of all employees

Total valid invention patents: Recycled 5 5 5 4 6 units of obsolete equipment a year-on-year increase of 24.70%

Led or participated in the formulation of over 6 0 national industry local

and group standards 238 Discharged 2 8 3 2 0 tonnes of domestic wastewater down 8 . 2 8 % year on year

Within the R&D team 9 2 . 3 2 % held a bachelor's degree or higher

Total park electricity consumption was 8 3 8 9 8 5 3 kWh a 9 . 2 9 % decrease year on year

Society Governance

Total investment in employee training:

Customer satisfaction reached 9 5 . 8 8 points Held 1 annual results briefing

RMB208.78

Conducted 6 6 supplier training sessions with over 1 6 0 0 participants Hosted 3 0 investor research sessions

Assisted in returning funds nearly RMB 1 . 3 6 million for 2 3 cases Training coverage: Responded to 1 2 5 investor inquiries on irm.cninfo.com.cn

Conducted 1 4 2 quality training sessions with 3 2 9 7 participants 22818 participants In 2025 distributed RMB 2 2 1 million in dividends and repurchased RMB 3 8 0 million in shares

Annual fire drill involved 1 5 3 0 participants Efficiently disclosed 4 annual reports and 7 0 interim reports

a year-on-year increase of 48.69%

Average training hours per employee: Organised 2 general meetings of shareholders 1 0 Board of Directors' meetings

Established 1 1 "Employee Hub" facilities 3 Board of Supervisors meetings and 4 Audit Committee meetings

providing ongoing services to 1 9 3 4 4 people 21.75 hours

Conducted 5 2 compliance training sessions covering 4 3 5 8 participants with a cumulative duration

of 4 4 . 6 hours

05ESG Governance

Carbon Path to the Future Shared Responsibility

through Data Governance2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

ESG Management Framework

Vision Become a pioneering enterprise for "Digital China"

Technological Environmental Social Corporate Mission Technological innovation for the benefit of humanity

Innovation Protection Responsibility Governance

Innovation-driven Carbon emission reduction Inclusive sharing to Compliance and integrity Strategy Technology-driven digital innovation Green transformation

and energy efficiency to foster robust for a low-carbon future Community engagement to fulfil

technology for good improvement to promote benefit peer enterprises responsibilities People-oriented win-win cooperation

a green future sustainable development

To implement the strategy the Company continues to improve a four-in-one sustainability framework namely ESG Management Mechanism

innovation-driven focus on technology for good leveraging cutting-edge technologies to cultivate sustainable

Supervise review and assess

competitiveness; carbon emission reduction and energy efficiency improvement throughout the production and

Review topics and governance strategies

operation cycle to create closed-loop environmental management inclusive sharing to eliminate the digital divide ESG Management Review ESG indicators and achievements

and encourage equal participation among diverse entities in the digital ecosystem compliance and integrity to Committee

Approve ESG reports and manuals

solidify the governance foundation and ensure data security and business ethics. Under the overall coordination of

the Board of Directors the ESG governance system has been fully integrated across R&D supply chain and service Determine topics manage strategies coordinate advancement

processes. Leveraging digital tools a dynamic "strategy–execution–evaluation" mechanism has been established Study and determine topics

(policies and guidelines/stakeholders/

forming a mutually reinforcing loop between disclosure quality and management effectiveness. This approach ESG peer practices/differentiated features)

Working

continuously enhances business resilience and social value fostering a smart and sustainable ecosystem. Group Plan topic governance strategies

Guide and approve

The Company actively aligns with the United Nations 2030 Agenda for Sustainable Development and further Digitalise indicators and monitor the achievement of goals

integrates all 17 SDGs into its daily operations and long-term planning. Multiple key initiatives have been Prepare ESG reports and manuals

launched across technology greening responsible supply chain management and social empowerment driving a

ESG Implement

deep integration of the digital and green economies and contributing lasting value to the global community through Business

Implement topic governance strategies

the power of responsible business. Progress and specific actions are detailed in the corresponding sections of this Representatives Supervise and assess Perform systematic analysis and management of

Support ESG indicators

Report.Perform routine management of ESG risks and topics

07

Regular reports

Regular reports2025 Introduction ESG Innovation Environmental Social GovernanceGovernance Performance Performance Performance Performance Appendices

Environmental Social and Governance Report

ESG Strategy and Risk Management

Policies Strategies and Achievements of Sustainability Management

Newland always upholds the core mission of "Technological Innovation for the Benefit of Humanity" and has deeply integrated sustainability into its corporate strategy and day-to-day operations. We have established

and continuously improved a sustainability framework underpinned by four key strategies. Overseen and guided by the Board of Directors the framework is systematically aligned with the UN SDGs and leading

ESG standards ensuring that the Company fulfils its broader responsibilities to the environment employees and society while pursuing commercial success.Technology-driven Green transformation for People-oriented win-win Rural empowerment with

digital innovation a low-carbon future cooperation shared responsibility

Driven by cutting-edge technologies such as AI we innovate We integrate environmental management into the entire We build a diverse and inclusive corporate culture enhance We promote long-term common prosperity through rural revitalisation

products and services and continue to drive the digital operational process committing to the efficient use of resources and employee wellbeing and development and create a safe healthy practices drive economic connectivity through cross-border payments

upgrading of a wide range of industries with innovative solutions. the continuous reduction of carbon emissions. and efficient workplace. and bring warmth to the community through employee volunteer activities

Continued surge in innovation momentum Environmental management integrated into operations Human resources governance upgrade A decade of rooted commitment to building a revitalised path

Anchored in the "AI+" strategy the Company is achieving comprehensive In day-to-day office operations and production and manufacturing We have established and been operating a Human Resources Committee Relying on the long-term mechanism of "One Hundred Enterprises Helping

breakthroughs by focusing on the deep integration of AI with existing core processes we implement a series of energy-saving water-saving waste creating a comprehensive platform that integrates research exploration One Hundred Villages" we support Xi'an Village in Yongtai County in

technologies key products and industry customer needs. Highlights reduction and resource recycling and reuse measures to improve resource and collaborative advancement of our human resources initiatives. cultivating a distinctive agricultural industry chain through multiple

include the launch of China's first large model tailored for the payment utilisation efficiency in our operations. approaches such as industrial fund support technological empowerment

industry the development of an all-in-one Xinchuang large model system and consumption assistance thereby strengthening the endogenous driving

and full-spectrum innovation practices spanning from foundational models force of rural development.to applied scenarios.Steady and rapid progress in overseas expansion Climate change tackling actions Talent development system upgrade A bridge for seamless cross-border payment

The business footprint has effectively extended into high-value regions We continuously monitor and assess climate-related risks and We integrate AI technology with business scenarios and build a talent By collaborating closely with China UnionPay and partners across the

and brand reputation and customer recognition have been significantly opportunities incorporate climate change factors into long-term development system centred on the "Four Camps and One Lecture" and industry chain we jointly build an efficient and inclusive cross-border

enhanced. By establishing overseas subsidiaries and successfully management considerations and actively explore adaptation strategies. have earned recognition as a FUTURE 50 "Annual Benchmark Enterprise for payment service system creating a bridge of seamless payment for

obtaining the US MSB licence we have laid a solid foundation for our Future Management Talent Development". Chinese and foreign consumers and enterprises.cross-border payment business.Deepened industrial ecosystem synergy Product life cycle management Continuously optimised talent structure Active employee engagement in public welfare

Connecting with over 300 developers and collaborating on more than 180 Focusing on the environmental impact of products throughout their full life Focusing on future business needs we intensify the cultivation of key Turning employees' enthusiasm into public welfare initiatives we deepen

applications we provide intelligent solutions across 64 sub-scenarios in cycle from design to recycling we are committed to reducing the embedded cadres through a diversified recruitment and training system gradually the emotional connection between the Company and its local communities

12 major industries including retail and catering jointly building a carbon of products through green design and promoting the development of advance the introduction of talent in key fields and actively build a building a harmonious supportive and collaborative community

thriving digital business ecosystem. the circular economy. high-quality talent ecosystem to support the Company's long-term ecosystem that aligns personal fulfilment with our social value.development.

082025 Introduction ESG Innovation Environmental Social Governance Appendices

Governance Performance Performance Performance Performance

Environmental Social and Governance Report

Management of Sustainability-Related Risks and Opportunities

Against the backdrop of technological innovation driving profound changes in the digital economy Newland has continuously incorporated the management of sustainability-related risks and opportunities into the

core aspects of corporate strategy and operations viewing it as a key enabler for maintaining robust business performance and driving long-term value creation. In response to an increasingly complex macro

environment and industry evolution we have established and continuously improved mechanisms covering risk identification assessment prioritisation and management under the full oversight of the Board of

Directors. This ensures that all sustainability topics receive adequate attention and are effectively managed supporting the Company in maintaining resilience and seizing future opportunities in the market.Identification: Proactively identify sustainability-related Assessment: Quantify the impact of risks and the

risks and opportunities value of opportunities

We regularly identify ESG-related risks and opportunities involved in A multidimensional assessment system is adopted to conduct a quantitative

business operations including but not limited to climate-related risks analysis of the identified ESG factors by combining the likelihood of risk

(such as changes in carbon emissions regulations and the impact of occurrence with potential impacts covering dimensions of financial

extreme weather) supply chain-related risks (such as raw material performance business operations and market competitiveness. For

sustainability and supplier compliance) and technology and market example the potential financial impacts of climate change under different

opportunities (such as green smart terminals and digital payment scenarios as well as the market growth potential brought by low-carbon

applications). By continuously tracking industry trends and investor technologies are assessed to provide a basis for decision-making.concerns we ensure the timeliness of the mechanism and incorporate key

topics into ESG disclosure.Prioritisation: Anchor key sustainability topics by level Management: Continuously optimise risk control mechanisms

Based on the assessment results the Company prioritises sustainability topics Entrusted by the Board of Directors the Company's senior management

and screens them in accordance with the principle of dual materiality and formulates and implements risk response and opportunity transformation

then establishes corresponding standalone disclosure mechanisms for the strategies with a core focus on strengthening reviews of environmental and

selected topics. Among them high-priority risks refer to topics that may have social standards across the supply chain promoting green procurement and

a significant impact on the Company's operations and financial performance low-carbon logistics increasing investment in the development of low-energy

such as the increasingly prominent issue of data security; important smart terminals data security and circular economy technologies improving

opportunities refer to areas that can significantly enhance the Company's information disclosure in accordance with the principle of dual materiality

competitive advantages such as the R&D of green intelligent terminal and responding to investor and public concerns through regular reports and

products. multi-channel communication. Committees under the Board of Directors

regularly review progress promote strategy iteration and resource

optimisation and continuously enhance the Company's sustainability

resilience.

092025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Materiality Assessment and Management

To effectively identify the key topics in ESG management the Company referred to domestic and international standards and launched dual materiality identification and analysis. The core of this work was to assess

from two dimensions: first to analyse the financial materiality of each topic for the Company across different time horizons; and second to assess the impact materiality of the Company's performance to the economy

society and environment. To ensure that the assessment is comprehensive and objective the Company attached great importance to and extensively collected the views of internal and external stakeholders. By

integrating industry characteristics with operational realities we systematically assessed confirmed and approved 23 materiality topics thereby precisely anchoring the focus of our ESG strategy and actions.Understand the Based on an in-depth analysis of China's industrial development industry

Company's characteristics and policies and regulations the Company systematically Impact materiality to the economy society and environment

background and identified internal and external stakeholders as well as the impacts First the Company identified and sorted out key sustainability topics through

opportunities and risks they brought in conjunction with our own business

stakeholders

strategy and business relationships and continued to monitor and actively interviews and questionnaires. Secondly we extensively invited internal and

respond to the expectations and demands of these groups. external stakeholders to answer questionnaires comprehensively analysed the

potential positive and negative impacts of the Company's performance on

Prepare a list Based on the results of the 2024 ESG topic assessment the Company conducted

a comprehensive analysis in conjunction with multiple dimensions including various topics and conducted a quantitative assessment from the degree and of topics

policy standards market requirements and peer benchmarking and ultimately likelihood of impact. Finally we combined evaluations from all parties with

prepared a list of 23 core ESG topics. expert opinions to form the results of the impact materiality assessment.Impact materiality Financial materiality

ESG topics Financial materiality to the Company

Positive impacts Negative impacts Risk Opportunity

Identification Through interviews and other methods we preliminarily identified the potential

and assessment Scale Scale

Scope Scale Scale financial impacts of various topics and selectively invited the Company's

Scope

Irremediability od od management internal financial experts and external shareholders to participate in Likeliho Likeliho

Likelihood Likelihood questionnaire surveys with a focus on assessing the degree of impact and likelihood

Set a threshold Set a threshold of occurrence of their risks and opportunities on financial position thereby combining

Above the threshold Below the threshold (exclude) Above the threshold Below the threshold professional opinions from multiple parties to form the results of the financial

Topic with impact materiality Topic with impact materiality materiality assessment.

10Topic materiality assessment2025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance

Appendices

Employees Shareholders or Governments and Customers or consumers Suppliers and partners The public and media

potential investors regulatory authorities

Employees' congresses General meetings results Periodic reports/interim Service hotline Suppliers and partners Regular

employee surveys briefings and roadshows announcements customer satisfaction Tendering/bidding/procure reports/announcements/ci

meetings interviews regular reports and correspondence surveys product launch ment activities business rculars email and fax

hotline and email announcements compliance monitoring events/exhibitions exchanges and cooperation public welfare activities

commercial negotiations media interviews

* Diversity and inclusion * Economic performance * Compliance with laws and * Product innovation and * Supply chain management * Information disclosure

* Career development and * Investment return regulations R&D * Procurement policy * Public image enhancement

promotion * Robust operations * Tax payment in * Privacy and data security * Fairness impartiality and * Positive contributions

* Remuneration and benefits * Information disclosure accordance with the law * Product safety and quality openness to society

* Rights protection * Sustainability * Adherence to business * Integrity and mutual * Public engagement

* Safety and health governance ethics benefit

* Talent attraction and * Risk management * Alignment with national * Communication and

retention policies cooperation

* Compliant operations * Win-win development

* Environmental protection

* Active employment

promotion

* Improving training and * Maintaining robust * Proactively pay taxes in * Strengthening product and * Implementing sustainability * Sharing updates and

promotion mechanisms to operations to create accordance with the law service innovation to principles to co-build a news on products and

support growth returns * Actively aligning with enhance satisfaction responsible supply chain services via media and

* Optimising remuneration * Integrating business policies * Ensuring product safety * Adhering to fair the official website

and benefits resources to build a * Complying with laws and and quality through a procurement and ethical * Actively engaging in

* Safeguarding employee robust business regulations well-developed quality business practices social public welfare to

rights safety and health ecosystem * Providing job opportunities management system * Broadening exchanges and enhance the Company's

* Organising wellbeing * Performing timely * Contributing to "Digital * Reinforcing cybersecurity cooperation to promote public image

activities to enrich life legal and China" to protect privacy and mutual benefit and * Enhancing interaction

compliant information information win-win outcomes and communication with

disclosures the public and the media

* Continuously improving

corporate governance to

enhance value

11

The Company's responses Topics of concern Stakeholders2025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance

Appendices

Results of Topic Materiality Assessment Topic Confirmation and Approval

Based on the dual materiality principle and the materiality scores from stakeholders the ESG Upon review and confirmation by the Board of Directors the Company has identified three core topics with dual

materiality matrix was drawn as follows: materiality i.e. data security and customer privacy protection product safety and quality and risk

management and internal control compliance. We will further focus on these material topics comprehensively

summarise their impacts risks and opportunities and highlight the corresponding management measures and

progress in this Report.Highly material

Environmental

Social Data security and

customer privacy protection Material topics Impact Risk Opportunity

Governance

Product safety and quality

Data security and Establish rigorous data security Data leaks or non-compliance Establishing a robust data security

Employee care and benefits Customer Service customer privacy and privacy protection with privacy protection may result and privacy protection system can

Business ethics protection mechanisms prevent the risk of in severe penalties and user enhance customer trust meet

Risk management and

internal control compliance data breaches safeguard the claims leading to financial losses; regulatory requirements and

Supply chain management information security of customers data security incidents may reduce compliance costs; the

Business ethics

Stakeholder communication and cooperation and related parties and enhance seriously damage brand image export of relevant technologies can

Employee training and

career development Sustainable Innovation-driven focusgovernance customer trust. and customer trust. open up new business scenarios.Diversity and inclusion Occupational health

and safety

Product safety and Strictly control product safety and Security vulnerabilities or quality Strictly controlling the safety and

quality standards provide issues in products may lead to

Climate change response quality quality of digital products (such as Ethics of science and technology

and carbon neutrality consumers with reliable digital user complaints product returns software systems and hardware

Rural revitalisation Circular products and services and and litigation resulting in devices) can enhance brand

and social contribution economy

Equal treatment to SMEs

Pollutant discharge and enhance brand reputation and revenue losses and fines; damage reputation strengthen market

waste management

Water resources management market competitiveness. to brand reputation may lead to competitiveness and reduce

customer attrition and affect after-sales maintenance and

Energy long-term revenue. compensation costs.management

Land use and

biodiversity conservation

Risk management Establish a comprehensive risk Failure of internal control and A sound risk management and

Material

and internal control management and internal control compliance may lead to irregular internal control compliance system

compliance compliance system to effectively operations financial fraud and can effectively prevent financial

Material Materiality to Newland Highly material prevent various operational other issues resulting in legal and operational risks

financial legal and other risks regulatory penalties and financial reduce losses and safeguard the

and safeguard the steady losses; inadequate risk Company's steady operations.Newland's 2025 Materiality Matrix operation of the Company. anticipation may lead to an untimely response triggering

major operational crises.

12

Materiality to StakeholdersInnovation Performance

Innovation-Driven Technology for Good

Topics responded to

Innovation-driven focus

Ethics of science and technology

Alignment with UN SDGs2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Innovation Investment and

Technological Achievements

15% The Company attaches great importance to R&D innovation and talent The R&D team possesses a strong professional foundation and diverse

investment and is committed to building a technical team with a sound knowledge backgrounds. Among them 92.32% hold a bachelor's degree or

structure and solid expertise. As at the end of 2025 the total number higher including 3091 bachelor's degree holders and 227 master's degree

of R&D personnel reached 3594 accounting for 57.73% of the total holders; 276 team members have a secondary school education or below

workforce. forming a knowledge structure dominated by highly educated talent with

44% complementary multi-level backgrounds.

R&D Team

Composition by Age

41% In terms of age our team demonstrates a well-structured youthful To continuously enhance team capabilities the Company conducted a total

composition: 1583 employees are aged 30 or below accounting for of 161 technical training sessions throughout the year systematically

44.05%; 1463 employees are between 31 and 40 accounting for strengthening the professional competence and comprehensive capabilities

40.71%; and 548 employees are aged 41 or above. This structure of R&D personnel. Through robust R&D investment and a systematic talent

centred on young core talent and supported by mid- to senior-level development mechanism we continuously strengthen our capacity for

professionals ensures both innovation vitality and the transfer of independent innovation drive breakthroughs in key technologies and

Under 30 31 to 40 41 and above

experience within the team. product upgrades and build a solid foundation of technology and talent to

support the achievement of our sustainability goals.Driving AI capability and leadership development through an innovative training system

In 2025 the Company systematically built an innovative talent development system featuring the parallel tracks of "AI empowerment for all employees" and "management pipeline development"

comprehensively strengthening its digital capabilities and leadership foundations. In terms of AI empowerment we followed the "awareness-practice-risk control" pathway and conducted systematic

training programmes throughout the year. Through theoretical seminars such as AI Cognitive Breakthrough and hands-on workshops including AI Reshaping the Workplace the Company promoted the

practical integration of AI technologies into workplace scenarios effectively enhancing overall digital intelligence capabilities and operational efficiency. We also initiated the innovative "Technical

Managers Training Camp" adopting a three-dimensional approach of online offline and workshop formats to cover 202 managers. With high satisfaction scores (both content and organisation exceeding

9.5) and collaborative "knowledge-to-practice" workshops the program effectively translated management methods into actionable outcomes. Through the systematic deployment of the above innovative

initiatives we formed a dual-wheel-driven pattern of technological empowerment and management support injecting strong talent momentum into sustainable development and digital transformation.

142025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Innovation Investment and Technological Achievements Ethics of Science and Technology

Newland has always regarded the ethics of science and technology as the cornerstone of sustainable corporate

development and responsible governance as the guiding principle security as the bottom line inclusiveness

Demonstrating Technological Influence through Innovative as the direction and privacy as the boundary and translates the ethics of science and technology from

Achievements and Standards Leadership conceptual advocacy into organisational systems and product practices.In 2025 the Company achieved fruitful innovation results. It submitted a total of 93 invention patent applications

continuing a year-on-year growth trend secured 10 patent grants and maintained a total of 238 valid patents alongside Responsible governance as Safety as the bottom line

obtaining 10 related certifications. the guiding principle

In terms of standards development in 2025 the Company actively contributed to eight industry and national standards.Notably it led the release of China's first industry standard for mobile device barcode recognition SJ/T 11958-2025

Information technology-Reading and Display of Barcode by Mobile Devices filling a domestic gap in this field. At the same We embed the principles of responsible We actively participate in the formulation of PCI

time the Company actively participated in the development and implementation of national standards under the China governance throughout the entire process of international standards with both terminals and

Communications Standards Association in the areas of biometric recognition (3 standards) the Internet of Things (3 artificial intelligence technology research and management systems achieving security

standards) and AI (1 standard). Cumulatively we have chaired and participated in over 60 national industry local and development application implementation and certification and meeting global compliance

industrial development bridge gaps between requirements. Through end-to-end protection

group standards significantly enhancing our industry influence and authority in key technological areas. ethical standards and technological innovation we safeguard every transaction with trusted

and ensure that AI development and ethical products strengthening the security foundation

governance advance in harmony. of payment infrastructure.Online learning platform - driving the continuous evolution of edge

intelligence algorithms

202593

In 2025 the Company successfully developed an edge intelligence platform based on an online

2024 78 learning mechanism. As the core carrier for enhancing algorithm generalisation capabilities the Inclusiveness as the direction Privacy as the boundary

platform has completed the research and development phase and is planned to be commercialised in

2026 with deep integration into edge intelligence gateways promoting a complete closed loop from

2023 66 algorithm research and development to scenario implementation. The platform will be the first to be

We have launched accessible POS terminals We strictly adhere to the principle of data

applied in two benchmark projects in the smart energy sector i.e. China Tower's Smart Tower featuring voice prompts and large-front minimisation implement chip-level local

2022 64 Project and Sinopec's Smart Petrol Station Project. During project implementation the platform displays lowering the barriers for elderly and encryption and end-to-end protection for

automatically collects on-site video data through edge gateways and performs intelligent annotation. visually impaired users. Designed with sensitive information and continuously improve

60 Data uploaded to the platform is used to continuously train and iterate the algorithm models

inclusivity in mind these products ensure that classification categorisation and impact

2021 users of varying cognitive abilities can equally assessment mechanisms to strengthen the

ultimately achieving sustained improvements in recognition accuracy and alert precision. enjoy the convenience of digital payments security and privacy protection line for users

Number of invention extending the benefits of technology to a broader through systematic management.patent applications population.

152025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

AI-driven System Empowerment

The Company uses AI to drive upgrades to internal and external systems. Internally we have built a global intelligent office platform and AI assistants to enhance collaboration efficiency; externally

we have developed an AI-powered payment business matrix to fully empower operations and service delivery.Reconstructing the global integrated intelligent Connecting internal and external intelligent Using the AI matrix to drive the end-to-end

office foundation practices through AI applications upgrade of payment business processes

In 2025 the Company completed the comprehensive reconstruction and launch of The Company has built an AI-centred intelligent empowerment system that The Company has also built an AI-centred intelligent application matrix covering

the "Newland" platform building it into an integrated intelligent office portal that connects the internal and external value chains. In terms of external business the entire payment business process effectively driving upgrades in service

supports global business collaboration. The new platform integrates zero-trust support we have independently developed and launched the business-driven efficiency and user experience. To address bottlenecks in merchant review

security and international acceleration channels and is equipped with dedicated intelligent application the Mira platform. It possesses four core capabilities efficiency an AI merchant review assistant has been introduced to support the

storage in China and overseas with more than 6300 activated users. It has including integrated Q&A intelligence analysis competitor tracking and product parallel review of tens of thousands of merchants improving the review efficiency

significantly improved collaboration efficiency and knowledge management certification enquiry efficiently supporting business scenarios such as brand per merchant by seven times and resolving the challenge of verifying materials

capabilities cumulatively supporting 12600 meetings and archiving 55000 messaging development product feature extraction and compliance checks and from different locations through dual AI recognition technology with an accuracy

documents including 5198 real-time collaborative documents. Intelligent significantly improving customer response speed and communication consistency. rate of 98%. To optimise the service experience the Company has developed

applications have also been further embedded with AI spreadsheets accounting In terms of improving internal operational efficiency the Company has developed "Xiaoyi Miaoda" an intelligent customer service system based on RAG technology

for 10% while the AI transcription function has efficiently processed 661 the intelligent assistant "IT Turing Vision" on Lark providing employees with enabling second-level response times and precise answers. In operational control

meetings and transcribed 6.87 million Chinese characters. At present the real-time and accurate technical and business support and effectively advancing and management the Company has established a dual-dimensional intelligent

platform has completed the integrated migration of 64 core applications basically the deep implementation of intelligent office operations. The coordinated inspection system featuring both images and videos based on convolutional neural

achieving the goal of "one platform aggregating all applications of the Company". advancement of these two AI applications has not only strengthened service networks enhancing the objectivity and accuracy of online inspections. In

capabilities at the business front end but also systematically enhanced internal addition at the 2025 Apsara Conference Xingyi and Alibaba Cloud jointly

operational efficiency forming a complete closed loop from external business launched a large model tailored for the payment industry and debuted intelligent

innovation to internal organisational efficiency improvement. agents such as AI Business Insights and AI Marketing Assistant continuously

expanding the application boundaries of AI within the payment ecosystem.Digital office applications

Communication Document Meeting Digitalisation of Digitalisation of

digitalisation digitalisation digitalisation cultural operations employee services

Online discussions online Connect business documents Use AI+ meetings to run Flexibly carry out corporate Leverage AI capabilities to

audio and video online through AI+ multi-person through the entire video culture promotion activities provide multi-dimensional AI

meetings online documents collaboration conferencing process targeted at specific groups assistants for employees

email... according to the Company's needs

162025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Supporting the Digital Transformation of the Real Economy

The Company anchors its efforts in industry-specific scenarios and systematically advances the deep integration of AI technologies such as large models with the real economy. By creating benchmark practices in

key fields such as finance healthcare government affairs and energy we continue to inject vitality into the digital transformation of various industries.Domestic AI scheduling platform supports intelligent operations and Image translation engine boosts certification efficiency and accuracy for

maintenance of China Tower law firms

The Company worked closely with China Tower to implement an edge AI scheduling In the "Halal Certification" project with a partner law firm the Company designed and

and multi-chip evaluation platform for technological innovation. The platform achieved developed over 50 core interfaces. Its image translation feature achieved 91% accuracy

Communications stable operation throughout the year with no major production accidents fully Legal in a live environment outperforming mainstream commercial engines and effectively

Infrastructure supported more than five categories of domestic hardware including Huawei Ascend Technology enhanced the efficiency and precision of legal document processing through digital and reached 100% indicator coverage. Through in-depth optimisation of core models tools.inference speed increased by 3 to 4 times significantly enhancing the intelligent

operations and maintenance and computing power support capabilities of the

infrastructure.AI-assisted diagnosis and intelligent emergency monitoring support greater AI empowers official document drafting industry analysis and integrated

precision in diagnosis and treatment and more standardised procedures tendering and bidding

In clinical diagnosis scenarios the Company jointly developed an AI-assisted rare The Company has successfully developed an AI industry analysis report system for the

disease reporting system with Fuzhou Cancer Hospital achieving an accuracy rate of Government Fuzhou Municipal Government supported the Bureau of Industry and Information

Smart over 95% for intelligent citation of medical literature. It significantly improves Digitalisation Technology in achieving intelligent drafting of official documents delivered an

Healthcare diagnostic reliability and has been recognised as a provincial-level AI innovative and intelligent Q&A demonstration system for Fuzhou's cybersecurity department and built

solution. In emergency care and monitoring scenarios the Company collaborated with Government- an integrated tendering and bidding platform for Fujian Yili Group continuously

Anker Medical to deploy a private cloud + edge-end model and a video intelligent enterprise expanding intelligent application scenarios in government affairs and related fields.gateway using AI algorithms to enable real-time monitoring and early warning of Services

standard operating procedures inside ambulances fully validating the value of AI

technology in improving medical quality and safety."Cloud-edge Collaboration" enables real-time warning of non-compliant Three-in-one strategic system upgrades intelligent hotel financial solutions

operations in petrol station unloading areas For scenarios such as hotel development rebranding and franchising the Company

To address the challenge of real-time monitoring in the unloading areas of Ningxia has upgraded its "Youlian Loan" offering to launch an intelligent hotel financial

Petrochemical gas stations the Company provided a "private cloud + edge" collaborative solution. By building a three-in-one strategic assessment system combining model

Energy solution. By deploying video edge gateways and AI algorithms the system analyses data expert experience and social attributes and integrating multi-dimensional video feeds in real time and issues alerts for unauthorised entry and hazardous Hotel objective data from both individuals and enterprisesthe Company has significantly Security operations enabling timely detection of risks. This approach transforms management Finance enhanced the precision approval efficiency and risk management capabilities of its

from a "post-incident review" model to one of "real-time warning and proactive hotel financial services.prevention" significantly enhancing operational safety.

17Environmental Performance

Carbon Emission Reduction and Energy Efficiency Improvement to

Promote a Green Future

Topics responded to

Climate change response and carbon neutrality

Energy management

Circular economy

Pollutant discharge and waste management

Water resources management

Resource recycling and pollution control

Land use and biodiversity conservation

Alignment with UN SDGs2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Climate Change Response and Carbon Neutrality ESG disclosure and rating improvement

To support its global development the Company

Carbon verification and released its first ESG report in English for Carbon Neutrality international stakeholders systematically disclosing product certification environmental and social performance. In major

Through efficient and orderly internal and domestic ESG ratings the Company received an

Greenhouse Gas (GHG) Emissions and Emission Reduction Measures external collaboration the Company successfully A-level or above from institutions such as CSI and

completed its first organisation-level GHG CNI and was awarded the "Best ESG Practices

In 2025 the Company fully integrated GHG emissions management into its sustainability strategy emissions verification and conducted a full life among Listed Companies" award demonstrating

and established a scientific standardised and future-oriented carbon management system around cycle carbon footprint assessment for its flagship strong recognition from both the capital market and

capacity building third-party certification and transparent disclosure. product N950 successfully obtaining the ISO professional organisations.14064 organisational carbon verification

Upon verification the Company's total GHG emissions in 2025 amounted to 272834.23 tonnes of statement and the ISO 14067 product carbon

carbon dioxide equivalent (CO2e). footprint verification statement marking that the

Taking the results of this verification as the starting point the Company will further advance the quantitative management of carbon emissions

optimisation of the verification boundary and the scientific setting of the base year gradually and product environmental impacts has reached

internationally recognised standards.improve the emissions reduction pathway and control mechanism covering medium- and long-term

targets deepen value chain collaboration steadily enhance the effectiveness of emissions

reduction and contribute to the achievement of China's "Dual Carbon" goals.Photosynthesis of Books

On the occasion of the convergence of the 56th Earth Day Carbon management capacity

and the 30th World Book Day the Company's Youzhai Book building

For the first time the Company systematically

Bar launched the public welfare campaign themed conducted specialised carbon inventory

"Photosynthesis of Books" encouraging employees to donate training across the listed entity system

idle books from their homes to the book bar in exchange for successfully cultivating 25 professionally

green plants. This initiative not only gives a second life to qualified internal auditors and preliminarily

establishing a carbon emissions monitoring

idle books and promotes resource recycling but also uses accounting and internal audit capability

books as a medium to advocate low-carbon lifestyles system covering all business units thereby

extending green practices from the workplace into daily laying a solid talent and institutional

home life and subtly embedding the concept of sustainability foundation for the continued advancement of

carbon management.into the underlying structure of the Company.

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Carbon Neutrality

Driving Green Business Development through Digital Innovation

The Company consistently integrates the concept of green development throughout the entire process of technology R&D and business operations. By advancing digital payment adoption promoting green commuting

expanding paperless service systems and implementing green product design we actively develop green businesses and continuously practice sustainability striving to achieve an organic integration of commercial

value with social and environmental benefits.Digital emissions reduction: Promoting a cashless society Green operations: Environmentally friendly design Digital services: Reducing physical material and

and low-carbon transition throughout the terminal lifecycle energy consumption

The Company vigorously promotes digital payment and cashless On the product side the Company implements green design principles Through digital channels such as the App mini-programmes and

transaction solutions including the practical application of e-CNY with payment terminals made from recyclable materials and using official accounts the Company promotes electronic membership cards

thereby reducing society's reliance on resources such as paper currency minimalist packaging while fully adopting electronic manuals to reduce electronic coupons and electronic bills effectively reducing the

and physical cards at the source. By deploying intelligent payment plastic and paper consumption. On the service side we provide core production and disposal of physical cards and paper-based promotional

terminals globally we actively help the consumer end reduce cash merchants with a fully paperless solution covering the entire process materials. At the same time leveraging the intelligent customer service

usage thus indirectly lowering carbon emissions throughout the entire from acquiring and reconciliation to settlement eliminating traditional system we optimise user service experience reduce the energy and

process of currency printing transportation and handling and paper sales slips statements and invoices and significantly reducing material consumption of offline service outlets and form a green service

providing infrastructure support for building a low-carbon society. paper use and the carbon footprint associated with printing and logistics. closed loop featuring online-offline collaboration.Digital emissions reduction: Promoting a cashless society

and low-carbon transition

The Company has built a green travel system by optimising shuttle bus routes (operating 20 routes covering the

main urban area in 2025) and implementing intelligent scheduling for company vehicles (with 2980 annual

scheduling instances a year-on-year increase of 29%) efficiently supporting 887 employees in low-carbon travel

throughout the year. Meanwhile the Company strictly limits the scale of parking within the park and

simultaneously adds multiple charging points guiding employees to shift towards green travel modes and

effectively reducing transport carbon emissions.

202025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Carbon Neutrality Improving Energy Management to Drive Efficient

Operations

Promoting Green Office Practices and Building a Sustainable The Company has built an energy management system covering equipment spaces

Future Together and behaviours focusing on systematic energy-saving upgrades intelligent controls

and institutional safeguards achieving continuous reductions in both total energy

The Company upholds the concept of sustainability and incorporates green office practices into its daily consumption and energy intensity.operational system. From digital process transformation and resource recycling management to eco-friendly

behaviour promotion we have established a systematic and closed-loop environmental practice mechanism. Energy-saving equipment upgrade

The Company has fully upgraded its lighting systems by replacing all office-area fixtures with

energy-efficient LED lights and installing infrared sensor lighting in public areas such as

01 02 03 corridors and stairwells and ensures lights turn off when not in use. Air conditioning systems are standardised with top-tier energy-efficient equipment set to a standard temperature of 26°C.

Digital process transformation Resource recycling management Eco-friendly behaviour promotion

The Company comprehensively The Company has established a The Company prioritises the use of refillable

implements a full-process digital resource sorting recycling and pens eco-friendly consumables and other

office system covering contract circular system covering all office sustainable products to reduce reliance on Intelligent control and monitoring

signing item requisition expense scenarios. By implementing a single-use office supplies. Shared facilities

reimbursement and meeting "double-sided printing + shared such as microwaves and water dispensers An intelligent energy monitoring platform has been deployed to collect electricity consumption

management. In 2025 more than printing" approach and controlling have been added to encourage employees to data in real time across various areas and identify abnormal energy consumption and issue

6500 personnel certificates were paper usage at the source total bring their own meals reducing the use of timely warnings. Lighting systems are equipped with light-sensing modules that automatically

issued and employment contracts paper consumption in 2025 disposable tableware at the source. Remote adjust brightness based on natural light while air conditioning systems implement zoned and

were signed via the electronic seal decreased by 7.4% year on year. collaboration is also promoted with the scheduled controls to prevent unnecessary operation. In 2025 system optimisation and

system and the number of online Classified recycling bins are placed usage rate of the remote meeting system strategy adjustments reduced energy waste from idling and standby modes.approval forms increased by in office areas and near printers increasing by 40% in 2025 effectively

44.18% year on year. By enabling with dedicated staff regularly cutting carbon emissions associated with

document and collaboration sorting materials and coordinating commuting and business travel.workflows to run through the with recycling organisations. Institutional safeguards and continuous optimisation

cloud platform with real-time

multi-location coordination the

system not only significantly The Company has formulated the Energy-Saving Electricity Management Measures clarifying

reduces paper consumption but the energy-saving responsibilities of each department and position and incorporating

also enhances organisational energy-saving performance into daily management assessments. A dedicated inspection

efficiency and transparency. mechanism has been established and energy use in the office area is inspected twice daily to ensure that unused equipment is switched off promptly. In 2025 the total electricity

consumption of the Company's campus was 8389853 kWh representing a year-on-year

decrease of 9.29% demonstrating the significant effectiveness of systematic energy-saving

measures.

212025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Carbon Neutrality

Climate Risk Management: Systematic Assessment and Business Scientific typhoon prevention to strengthen business resilience

Resilience Building

The Company attaches great importance to the physical and transition risks posed by climate change incorporates The Company is located in Fujian and falls within a typical monsoon climate zone with frequent

them into our business continuity management framework systematically carries out climate risk identification typhoons and concentrated rainfall. To effectively respond to business interruptions and safety

assessment and response and continuously strengthens our sustainability defence line. risks arising from extreme weather the Company has systematically established a typhoon and

flood prevention system covering the entire chain of early warning drills emergency response

System identification and assessment of and recovery. In 2025 we conducted three typhoon early warning drills and one fire

climate-related risks

evacuation drill issued six climate safety notices dynamically updated emergency response

In August 2025 the Company organised a special cross-departmental business continuity management initiative involving plans and ensured that response mechanisms are clear and feasible. Before the typhoon

information technology procurement manufacturing and R&D departments. Following the ISO 22301 international standard arrives the Company issues safety reminders in advance suspends outdoor operations and

methodology and under the guidance of external experts we systematically identified and assessed potential business arranges for employees to work from home. The emergency rescue team prepares sufficient

supplies in advance such as sandbags and reinforcement brackets and completes preventive

disruption scenarios caused by extreme weather geological hazards and geopolitical factors. The assessment was closely

measures including reinforcing outdoor facilities transferring materials elevating warehouse

aligned with the outcomes of the Business Impact Analysis (BIA) accurately identifying a number of high-priority business goods clearing the drainage system and installing flood-control barriers in the underground

activities and critical resources and clarifying the potential impact pathways and severity of climate risks on core operational garage. After the typhoon passes the Company immediately organises obstacle clearance

processes. emergency repairs and inspections for potential electrical hazards swiftly restoring the normal

operation of the campus. At the same time the Company annually insures campus facilities

production materials and other assets with comprehensive property insurance establishing a

Development of differentiated contingency plans multi-layered risk protection mechanism that emphasises prevention ensures efficient

and organisation of practical drills emergency response and provides insurance as a safety net. This approach continuously

enhances organisational resilience and the ability to maintain business continuity during

Based on the risk assessment results the Company formulates tiered response plans for different climate risk scenarios clearly extreme weather events.defining early warning mechanisms emergency response procedures and resource deployment arrangements. To verify the In July 2025 Typhoon No. 4 Danas brought sustained heavy rainfall causing waterlogging

effectiveness and operability of the plans the Company organises dedicated emergency drills simulating scenarios such as in many areas of Fuzhou. The Company promptly activated its flood prevention contingency

disruptions to office collaboration and obstruction to core business operations under extreme circumstances with a focus on plan implemented a 24-hour duty system at the earliest opportunity and completed the

testing remote collaboration capabilities decision-making response speed and cross-departmental coordination efficiency. The installation of basement flood barriers inspection and maintenance of drainage pumps

drills effectively enhance the team's emergency response capabilities in relation to climate emergencies further consolidating the stockpiling of sandbags and clearance of the campus's drainage system achieving zero

practical foundation for business continuity. property loss and zero casualties. In the same year when super typhoon "Hagasa" made

landfall in Guangdong the Company's Fuzhou headquarters assigned personnel for overnight

monitoring while Shenzhen branch strictly followed the government's "five suspensions"

directive ensuring synchronised and coordinated responses across both locations.Through the above systematic and regular climate risk management practices the Company has continuously enhanced our

organisational resilience and response capabilities in addressing the uncertainties of climate change providing solid support for

ensuring the stability of customer services safeguarding supply chain security and achieving long-term sustainability.

222025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Resource Recycling and Pollution Control Circular Economy

Green Production: Building a Low-carbon Manufacturing System across the Entire Value Chain

With green manufacturing as its core the Company has systematically built a resource-efficient environmentally friendly green production system through a comprehensive low-carbon transformation spanning

source procurement production processes and the operations of outsourced factories.Green procurement: Source control and

low-carbon selection

The Company has established a stringent green supply chain management mechanism. In the quality agreements signed with suppliers we

clearly stipulate that all materials must comply with the requirements of the RoHS Directive. For special environmental standards such as

halogen-free requirements suppliers are required to submit third-party testing and compliance reports annually or when the standards are

updated.In terms of material selection the Company prioritises the use of degradable and recyclable environmental materials. For example we have

replaced some blister packs with pulp-based materials to accelerate resource circulation and we have gradually replaced oil-based paint

with water-based paint for products requiring coating to reduce volatile organic compound emissions at the source. In addition the Company

gives priority to suppliers located near assembly plants effectively shortening transport distances and reducing carbon emissions from

logistics.Green processes: Lean design and circular reuse

In our production processes we focus on improving material durability and turnover efficiency. Pallets and turnover boxes are made of

high-strength anti-static ABS material and standardised specifications and dimensions enable universal use across processes. Replaceable

wear-resistant partitions are installed in the lining slots and can be flexibly adjusted according to product size significantly extending service

life and reducing material waste. In terms of packaging materials we fully implement foldable designs to reduce storage occupancy and

empty-return costs. We have established a ledger-based traceability management system for turnover materials supported by designated

collection classified cleaning and circular handover mechanisms to achieve the closed-loop circulation of packaging materials substantially

reducing the use of single-use packaging and the generation of solid waste.

232025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Resource Recycling and Pollution Control Circular Economy

Green Production: Building a Low-carbon Manufacturing System across the Entire Value Chain

Newland's outsourced manufacturing factories strictly follow green manufacturing requirements and advance a comprehensive green transformation from management systems and auxiliary material procurement

to production processes and energy-saving and carbon-reduction systems. While ensuring production capacity and quality these measures effectively reduce resource consumption and environmental impact

serving as a benchmark for the Company's supply chain green transformation.Green Factories: Low-carbon Practices at Outsourced Manufacturing Bases

Environmental Auxiliary materials Energy conservation

management system procurement Production process and carbon reduction

Our OEM factories have established and The factories implement a green approval process The entire process adopts lead-free soldering In 2025 the factories invested RMB1731500

effectively operated the ISO 14001 environmental for production auxiliaries such as solder paste with both SMT and post-soldering operations in green technological upgrades continuously

management system prepared the Environmental solder wire flux and adhesives. All materials using halogen-free materials that meet IEC advancing the optimisation of the energy

Impact Report and obtained approval from the comply with RoHS and REACH regulations with 61249-2-21 standards. The factories actively efficiency of production equipment. The lighting

local ecological environmental authority. priority given to eco-friendly options that are integrate automated equipment such as automatic system was fully replaced with LED lighting

The factories are equipped with solder fume halogen-free low in VOCs and use recyclable screw-locking machines and automatic fixtures variable frequency devices were

purifiers wastewater treatment facilities and packaging. Suppliers are required to provide dispensing machines to improve energy installed on high-energy-consuming equipment

noise isolation measures to ensure that exhaust compliance statements and annual third-party test efficiency reduce human error and minimise such as air compressors and an energy

gas wastewater and noise are discharged in reports while incoming material inspection reports material waste. By optimising workshop layouts monitoring system was deployed to collect and

compliance with applicable standards. They are include batch numbers and test report references and introducing overhead production lines optimise workshop energy consumption in real

also equipped with RoHS testing equipment ensuring full traceability throughout the process. handling losses are reduced and production time. Solar photovoltaic panels were installed on

enabling independent screening of the efficiency is enhanced. At the same time the rooftops of factory buildings and the clean

environmental compliance of materials and environmental awareness among personnel is energy generated was used to supplement

safeguarding the green attributes of products at strengthened with all new employees receiving infrastructure and production energy

the source. environmental and safety training. In 2025 28 consumption thereby promoting the continued

specialised environmental training sessions were decline in carbon emission intensity per unit of

conducted covering 458 participants. output value through multiple measures.

242025 ESG Innovation Environmental Social Governance

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Resource Recycling and Pollution Control Circular Economy

Product Life Cycle Management Practices

The Company has established a full life cycle management mechanism covering demand planning design and development production and manufacturing and end-of-life assessment systematically integrating

quality environmental and social responsibility requirements to continuously enhance product resilience and sustainable value.Source control and High-reliability design Sustainable supply High-standard manufacturing Closed-loop customer feedback

risk prevention and green verification chain collaboration and flexible delivery and continuous improvement

Based on a phased access management Through cross-departmental parallel Adhering to the principle of "high quality We implement strict admission reviews Centring around customer satisfaction

process we set clear quality activities design reviews we precisely translate at a fair price and long-term mutual and performance management for we have established a complete

and review criteria at each key stage sustainability requirements into technical benefit" we comprehensively assess manufacturing partners and promote closed-loop management process

and carry out design failure mode and specifications. Leveraging professional suppliers' performance in terms of the introduction of automated equipment covering issue handling root cause

effects analysis design reviews and laboratories we conduct reliability testing technical capabilities quality systems and standardised production processes. analysis and implementation of

supplier admission assessments so as surpassing industry standards to ensure environmental compliance and social Across multiple global manufacturing measures. Through an efficient ITR

to systematically identify and control long-lasting product performance in responsibility. Through stringent sites we ensure consistent quality system we feed back customer insights

potential product risks in the complex environments reducing resource component specification certification and output and flexible delivery capabilities systematically to the front end of R&D

environmental quality and social waste and carbon emissions caused by reliability testing we establish strategic effectively dispersing production risks design and procurement forming an

dimensions at the source. failures from the design stage. partnerships with leading suppliers to while maintaining supply stability and inherent improvement mechanism that

jointly advance green procurement and reducing environmental impact in the drives the continuous optimisation of

technological innovation and enhance manufacturing process. product and service quality.supply chain resilience and low-carbon

performance.

252025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Resource Recycling and Pollution Control

Pollutant Discharge and Waste Management Waste classification and Environmental compliance and standardised disposal system certification

The Company continues to promote outsourced OEM factories to establish and effectively operate a Our OEM factories implement strict classified management of Our OEM factories have obtained the Fixed Pollution Source

full-process control system covering waste classification compliant disposal and institutional safeguards all types of waste generated during the production process. Discharge Registration Form and completed the annual

ensuring that environmental impacts throughout the entire product manufacturing process are minimised. General waste such as cartons plastic bags and packaging hazardous waste declaration ensuring that pollutant

materials is collected in a unified manner and handed over discharge activities are lawful and compliant. In terms of

to qualified third-party organisations for recycling and reuse; management systems the factories continue to operate the

hazardous waste such as waste tin slag waste flux and ISO 14001 environmental management system the SEDEX

PCB offcuts is handled in accordance with the Hazardous SMETA 7.0 social responsibility audit and the hazardous

Waste Management Plan by setting up dedicated temporary substances process management system regulating

storage areas and regularly transferring it to licensed entities environmental performance management in accordance with

for standardised disposal thereby achieving full-process international standards.traceability.Policy development and process

control

Our OEM factories have formulated and implemented a series of internal documents including the Waste Management

Regulations Chemical Management Regulations Preventive Measures and Emergency Plan for Hazardous Waste Incidents and

REACH SVHC Management Procedures among others. In 2025 the Company cooperated with China Telecom Tianyi Vision

Technology to successfully implement the "Vision Network + Intelligent Algorithm" project at the Ningdong solid waste treatment

site in Ningxia significantly improving operational standardisation and safety response efficiency at the site. This project

addresses management challenges in the solid waste site such as frequent operations of soil trucks and blind spots in traditional

manual inspections. By deploying an intelligent video analysis system it enables real-time detection and alerts for operations

including soil truck unloading compliance driving routes and illegal dumping while also dynamically monitoring and proactively

alerting for unauthorised entry by nearby pedestrians and vehicles. The system effectively advances the solid waste site from a

"post-incident review" model to an "in-process warning" intelligent management approach.

262025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

Resource Recycling and Pollution Control Pollutant Discharge and Waste Management

Closed-loop recycling process and Recycling scale and asset efficiency

compliance control improvement

We strictly implement full-process management In 2025 the Company coordinated the recycling of

covering application inspection registration and obsolete equipment in line with business upgrades and

disposal conduct technical condition assessments and device iteration needs collecting a total of 63133

information registration for each recovered unit and units—a 41.72% year-on-year increase—covering

distinguish between repair and reuse component smart terminals back-end equipment and supporting

disassembly and environmentally compliant disposal. facilities across headquarters and regional branches.At the same time data security controls are Through centralised recycling and phased disposal we

strengthened to ensure all business information and effectively revitalised idle assets and improved

Policy Improvement and Standards customer data on the devices are completely erased resource utilisation efficiency. Resource circulation and value

Development making the recycling process compliant safe and regeneration

fully traceable.The Company has revised and improved the For equipment that upon inspection is found to

Management Measures for the Recycling and have potential for further use we organise a

Disposal of Waste and Obsolete Equipment and the professional technical team to carry out repairs and

Operating Specifications for Disposal of Discarded commissioning and some of the restored equipment

Electronic Products further clarifying recycling is reallocated to frontline business scenarios for

standards classification processes and division of continued use. For equipment that cannot be reused

responsibilities and adding a technical inspection as a complete unit we dismantle it and extract

step before equipment recycling thereby achieving usable parts as spare parts for maintenance thus

the dual objectives of asset control and green reducing the need to procure new components. For

operations and providing policy support for the remaining equipment with no residual value we

recycling work throughout the year. entrust qualified professional institutions to carry out

environmentally compliant disposal forming a

resource circulation chain of "repair - dismantling -

recycling - regeneration" and continuously advancing

the implementation of our green operations

objectives.Recycling and Circular Utilisation of Obsolete Equipment 272025 ESG Innovation Environmental Social Governance

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Resource Recycling and Pollution Control Water Resources Management

The Company attaches great importance to the efficient use of water resources and compliant discharge. By focusing on water quality monitoring drainage system optimisation and maintenance of water facilities

we continuously improve the water resource management system to minimise the impact of our operations on the water environment.Water quality monitoring and pretreatment Drainage system and compliant discharge Maintenance of water facilities and

leakage control

The Company strictly complies with wastewater discharge standards and The campus fully adopts a separate rainwater and sewage drainage The Company strengthens the routine inspection and maintenance of daily

regularly monitors and assesses the quality of discharged water. A system for separate collection and classified disposal of rainwater and water-use facilities and has established a rapid response mechanism for

three-stage septic tank has been installed on the campus to uniformly sewage. After pre-treatment sewage is discharged in strict compliance water leakage. Upon discovering pipe leaks we immediately shut off

collect and pre-treat domestic and office wastewater. Through processes with the emission standards set out in Fujian Province's Limits for Water valves and organise repairs to eliminate water waste. In the new office

such as sedimentation and degradation pollutant concentrations are Pollutant Discharge and a pollutant discharge permit will be granted in building sensor-activated faucets have been installed throughout

effectively reduced ensuring that subsequent discharge meets accordance with the law. Regular compliance self-inspections and achieving 100% coverage. At the same time we continue to carry out

environmental standards. Domestic wastewater discharge continued to reporting are conducted to ensure ongoing adherence to local water-saving awareness initiatives to enhance employees' awareness of

decline totalling 28320 tonnes in 2025 a year-on-year decrease of environmental management requirements. water conservation and reduce unnecessary water consumption at the

8.28%. source.

282025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Land Use and Ecological Conservation Environmental Management Policies

The Company fully integrates environmental risk management into strategic decision-making and daily operations taking compliance as the baseline and sustainability as the goal establishing a systematic and

normalised environmental management policy framework and continuously driving the implementation of green compliance and carbon reduction targets.Environmental risk assessment and Environmental training and

early warning awareness raising

We have established a normalised environmental We regularly organise and conduct special training

risk assessment mechanism and set up a on environmental protection to strengthen all

supporting early warning response system to employees' environmental awareness and compliance

implement dynamic monitoring and analysis of key consciousness. For key departments such as data

environmental indicators such as resource centres and facility management we focus on

consumption waste emissions and energy use carrying out specialised training on energy

promptly identify anomalies and initiate response conservation and emission reduction waste

strategies and effectively reduce environmental disposal and other areas so as to enhance practical

risks in operations. on-the-job capabilities and the level of green

operations.Continuous improvement and

Environmental management system transparent disclosure

We have established and operate an environmental We continuously optimise the environmental

management system in accordance with the ISO management system framework promote the

14001 international standard covering the entire iterative upgrading of management processes and

process of target setting implementation planning technical means regularly prepare and publish

and performance evaluation ensuring that reports related to environmental protection progress

environmental responsibility is embedded at all proactively disclose environmental performance

levels and across all positions thereby achieving a enhance information transparency and social

closed-loop system and continuous improvement. credibility and fulfil corporate environmental

responsibility through practical actions.

292025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Land Use and Ecological Protection Land Use and Biodiversity Conservation

Green campus: The Company upholds the philosophy of "ecology first green development" integrating

biodiversity conservation into campus planning and operations. The campus spans 150 mu

Building an with 15000 square meters of green space achieving a greening coverage of 15%. It features

ecologically carefully planted mixed communities of trees and shrubs that attract birds and squirrels

integrated creating a multi-layered and multifunctional green ecological environment. In recognition of its

innovation space outstanding ecological development achievements the campus has been named a "Model Park-style Demonstration Enterprise in Fuzhou City" setting an example of harmonious

coexistence between the innovation industry and natural ecology while providing employees

with a healthy comfortable and high-quality green office environment.Green building: The Newland Yiyue Industry-Education Integration Building project implements the green

construction concept throughout its full life cycle minimising its impact on land and ecology

Reshaping through technology integration and scenario optimisation.environmentally In terms of building energy efficiency the north and south fa?ades feature triple-silver

friendly carriers insulated glass curtain walls balancing thermal insulation and natural lighting; the east and

west fa?ades include solid-wall shading to effectively reduce heat load; the nightscape lighting

through low-carbon adopts LED light sources and the DMX512 intelligent control system to achieve precise lighting

design projection and time-based regulation reducing light pollution.In terms of landscape ecology high-green-volume plants are used to replace single-species

lawns reducing maintenance energy consumption.In terms of equipment intelligence the air-conditioning system employs variable-frequency

multi-split units to achieve intelligent regulation and control by zones; the lighting system fully

adopts LED fixtures with motion-sensor switches in stairwells achieving energy savings

exceeding 50%. These measures ensure user comfort while significantly reducing operational

energy consumption and environmental impact creating a low-carbon efficient and

intelligent green workspace.

30Social Performance

Inclusive Sharing to Benefit Peer Enterprises

Topics responded to

Rural revitalisation and social contribution Data security and customer privacy protection

Diversity and inclusion Customer service

Employee care and benefits Supply chain management

Employee training and career development Supply chain management

Product safety and quality Equal treatment to SMEs

Alignment with UN SDGs2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Rural Revitalisation and Social Contribution

Newland deeply integrates the fulfilment of corporate social responsibiiility into the national strategy of rural revitalisation and by establishing and implementing a long-term assistance mechanism continues to

inject momentum into rural development. We not only effectively assist supported regions in improving livelihoods and fostering industries but also explore in practice a sustainability model of mutual benefit and

win-win outcomes contributing solid efforts to rural revitalisation.Deepening paired assistance and conveying the warmth Deepening paired assistance and conveying the warmth of Innovating the win-win mechanism to bring together the

of the enterprise the enterprise combined force for development

The Company actively responded to the call of "One Hundred Enterprises The Company actively responded to the call of "One Hundred Enterprises The Company innovated its assistance model by mobilising employees to

Helping One Hundred Villages" establishing a 10-year paired assistance Helping One Hundred Villages" establishing a 10-year paired assistance subscribe to ecological New Year gift packages and other products in the

relationship with key areas such as Xi'an Village Yongtai County. During relationship with key areas such as Xi'an Village Yongtai County. During form of "consumption-based assistance" directly expanding sales

the Spring Festival we proactively carried out heartfelt care activities the Spring Festival we proactively carried out heartfelt care activities channels for agricultural products from assisted villages. This initiative

delivering New Year gift packages and festive greetings to some delivering New Year gift packages and festive greetings to some not only enabled employees' families to enjoy healthy ingredients but also

underprivileged residents in Xi'an Village. Through friendly underprivileged residents in Xi'an Village. Through friendly helped villagers increase their income building a warm mutually

conversations we gained insight into their actual needs bringing warmth conversations we gained insight into their actual needs bringing warmth beneficial connection between urban and rural communities and fostering

from the Company directly to the rural community. from the Company directly to the rural community. a positive interaction between social impact and the Company's internal

culture development.Bridging distances with care: Rural revitalisation visit to Xiji County

On 22 December 2025 Newland together with the Guyuan Branch of the People's Bank of China visited Yaopo Village Wangmin Township Xiji County

Ningxia to carry out the "Bridging Distances with Care" rural outreach and support initiative. The team visited 11 monitored households and three veteran

Party members delivering essential supplies such as rice flour and cooking oil. They engaged villagers in warm conversations about children's

education healthcare and housing security while also providing on-the-spot guidance on practical financial knowledge and agricultural payment policies.The visit strengthened Fujian-Ningxia collaboration reinforcing communication and trust between the Company regulatory authorities and local

communities.

322025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Rural Revitalisation and Social Contribution

Newland continues to uphold the principle of "Payments for the People" integrating the protection of public assets the enhancement of public safety awareness and compliant corporate operations. In 2025 the

Company deepened public education by strengthening police-enterprise collaboration and innovating promotional approaches and organised two themed public welfare campaigns that attracted 410 participants

systematically advancing both the financial security ecosystem and social welfare initiatives.Police-enterprise collaboration and protection of funds:

The Company actively cooperates with the public security authorities in

carrying out the control investigation and return of funds related to

anti-fraud efforts achieving remarkable results.August 2025 The Company in partnership with the Mawei Public

Security Sub-bureau launched the "Combat Infringement

Police and Enterprise in Action" campaign at the Newland

Technology Park. By leveraging technology for

identification rapid response and evidence preservation

the initiative established a dual-layer defence of "brand

protection plus nationwide anti-fraud measures"

demonstrating the strong commitment of police and

enterprise working together to uphold market order.As at Newland Xingyi Pay had received two letters of appreciation

December 2025 and one honorary banner from public security authorities.Over the year it assisted in returning nearly RMB1.36

million to victims in 23 cases effectively safeguarding the

property of the public.

332025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Rural Revitalisation and Social Contribution

Social Contribution

Innovation outreach and public education:

Scenario-based Multi-department Ongoing awareness

outreach coordination campaigns

The Company is committed to building an

anti-fraud awareness system that is both In July 2025 the Company The Company together with multiple The Company continuously carries out

innovative and empathetic using diversified collaborated with the Fuzhou departments organised the themed risk education through multiple

and scenario-based approaches to promote municipal and district-level public event "Anti-Fraud: A Mandatory channels including its WeChat

widespread public understanding of financial security authorities to produce the Course". Through case analyses official account official website and

security. anti-fraud awareness video Life interactive Q&A sessions and app. In 2025 it published 44 posts

Trailer. By vividly portraying typical handbook distribution the initiative on topics such as telemarketing

cases such as "NFC fraud" and "fake helped transform anti-fraud fraud reaching nearly 10000

order scams" the video highlighted knowledge from mere awareness to views. We also organise dedicated

the dangers of fraud and effectively practical application effectively events including Investor Protection

enhanced the public's ability to enhancing the public's fraud Day on May 15 and Consumer Rights

recognise and prevent scams. prevention awareness and response Week on March 15 and collaborate

capabilities. The event was with relevant Zhongguancun

recognised by the Fuzhou Anti-Fraud organisations on anti-fraud

Office with an on-site letter of campaigns effectively enhancing

commendation and an honorary financial literacy and risk awareness

certificate. across diverse audiences.

342025 ESG Innovation Environmental Social Governance

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Rural Revitalisation and Social Contribution

Practising an inclusive commitment to technology for

AI-integrated drug rehabilitation practices good through accessible design

On 25 April Newland Grand Academy launched the second stop of its 2025 Industry The Company has consistently integrated social responsibility into product innovation and is

Empowerment Programme with a training session at the Drug Rehabilitation Bureau of the committed to eliminating the digital divide through technology. In 2025 our N950 product

Fujian Provincial Department of Justice. Lin Feng an internal lecturer from Newland and successfully obtained EN301549 certification namely the European Accessibility Act (EAA)

Deputy Chief Engineer of the IoT Research Institute served as the instructor for the first certificate of conformity. This certification signifies that the product fully complies with EU

2025 Education and Rehabilitation Lecture. Focusing on The Application of AI Technology accessibility standards in both design philosophy and functional implementation providing

in Drug Rehabilitation he delivered a video-based lecture to over 660 law enforcement an equal and convenient technological experience for all users including people with

officers across the provincial judicial drug rehabilitation system exploring innovative ways disabilities. This achievement not only demonstrates the Company's strong commitment to

to leverage AI technology in supporting rehabilitation work. inclusive design but also highlights its responsibility to leverage technology to serve diverse

communities and promote social equity.

352025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Care Diversity and Inclusion Composition of employees

The Company consistently strives to foster a diverse equitable and inclusive workplace. In accordance with

policies such as the Employee Code of Professional Conduct the Company firmly opposes and eliminates all forms

By position Overseas

of discrimination and harassment and is committed to creating a work environment that respects diversity. We By gender Distribution

protect employees from unfair treatment on the basis of any legally protected characteristic including race colour

gender age religious belief physical ability and marital status.Human rights protection Male Female North Latin employee employee Production staff Sales staff Technical staff America America Europe

Middle East

Financial staff Administrative Asia-Pacific& Africa

management staff

Newland strictly complies with the Labour Law of the People's Republic of China the Law of the People's Republic of China on

In terms of talent structure female employees account for 30% of the Company's total

Work Safety and the labour laws and regulations of the countries and regions where it operates and follows the human rights

workforce among whom women in the management of the listed company account for

and labour standards stipulated by the United Nations Global Compact (UNGC) the International Labour Organisation (ILO) and

the Responsible Business Alliance (RBA). The Company solemnly commits to prohibiting all forms of child labour and forced 28.57% injecting female strength into the team and strongly promoting diversity and

labour safeguarding employees' equal legal rights to obtain labour remuneration rest and leave join labour unions and inclusion.participate in labour union activities and implementing measures to protect human rights and labour rights and interests. The Company's workforce allocation is closely aligned with its strategic priorities with

58% in technical R&D 16% in sales 22% in administrative roles and 2% each in finance

and production creating a talent structure that supports business growth.Establishing lawful and voluntary employment relationships The Company values cultural diversity and inclusion with employees representing ten

The Company explicitly prohibits any form of forced labour debt bondage labour or child labour and all ethnic groups including Han Hui and Manchu. It also actively broadens its

employment relationships are established on the basis of employees' free will. We commit never to international talent pool with foreign employees accounting for 3% of the workforce and

illegally withhold employees' personal identification documents such as identity cards and passports. widely distributed across North America Latin America Europe the Middle East and

During the recruitment process we strictly verify applicants' identity information in accordance with the Africa and the Asia-Pacific region continuously promoting cross-cultural communication

Employee Handbook and the Recruitment Management Policy with key data recorded and centrally and collaborative innovation.managed in the human resources system. At the resignation stage employees may freely resign in

accordance with the Employee Resignation Management Measures and other regulations after completing 0 Employee communication

the required notice procedures fully safeguarding their professional autonomy.Human rights incidents

Regular We have established a regular communication mechanism covering all stages of

Safeguarding employees' rights to remuneration and rest involving the employment communication: employment—from onboarding to active service and offboarding. Through multiple channels of child labour and including probationary interviews exit interviews and an internal Q&A platform we

Through policies such as the Remuneration Management Measures the Company ensures the provision forced labour in consistently collect employee feedback and respond promptly systematically enhancing

of fair lawful and reasonable remuneration and benefits to employees and all remuneration payments violation (2025) employee engagement and overall satisfaction.comply with the legal requirements for minimum wage overtime pay and various statutory benefits. At

Face-to-face We continue to implement the "General Manager Friday Breakfast Meeting" initiative regularly the same time in accordance with policies and regulations such as the Employee Handbook and the

conversation: inviting employee representatives to have breakfast together. Through relaxed and pleasant Attendance Management Measures we regulate employees' working hours safeguard their entitlement face-to-face conversations we listen closely to the concerns and constructive suggestions of

to adequate rest and leave and for overtime required under special circumstances give priority to time frontline staff. A dedicated follow-up register is maintained after each session to ensure timely

off in lieu thereby effectively protecting employees' health and work-life balance. action and effective resolution of employee feedback.

362025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Care Diversity and Inclusion

Women's Career Development

Human rights protection

Empowering women in innovation: Newland inspires female growth through role models

To support the career development and work-life

balance of female employees the Company actively

In 2025 the Fujian Association of

promotes practical measures such as flexible

Women Entrepreneurs held its annual

working arrangements and childcare support

gala in Fuzhou under the theme

striving to foster a workplace environment that

"Empowering Women in Innovation"

respects includes and supports the development

bringing together over 300 female

of women. In terms of policy safeguards the

entrepreneurs from across the province to

Company fully implements statutory rights and

discuss development. At the event

entitlements such as maternity leave and

Wang Jing Chairperson of the

breastfeeding leave; in terms of facilities the

Company was awarded the title of

Company continuously optimises dedicated spaces

Honorary President of the Fujian

such as Mothers' Room providing comfortable and

Association of Women Entrepreneurs. As

convenient spaces for women during pregnancy and

a National Committee member of the

breastfeeding; at the level of cultural activities the

Chinese People's Political Consultative

Company organises annual activities tailored to

Conference and an accomplished

female staff such as themed film screenings for

entrepreneur in the technology sector

International Women's Day strengthening their

Wang Jing's outstanding achievements in

sense of belonging and team cohesion. Through

technological innovation and social

these multi-level and systematic initiatives the

responsibility have made her a role

Company is committed to building a more supportive

model for women entrepreneurs.working ecosystem for female employees helping

Newland always respects the power of

them grow in both their careers and personal lives.women and has been actively fostering

a diverse and inclusive workplace

ecosystem.

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Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Care Employee Health Safety and Benefits

Occupational health and safety

Policies regulations and certifications Health management safeguards Fire safety management

* We obtained ISO 45001:2018 Occupational Health and * Health check-ups: We cooperated with four medical examination * Facility maintenance and upgrades: Throughout the year we

Safety Management System certification marking the institutions including FN.Health and iKang to provide conducted 24 tests and inspections of the fire control system

internationalisation and standardisation of our occupational customised packages and medical examination subsidies replaced 180 fire extinguishers and 460 emergency exit signs

health and safety management. offering convenience to employees and their family members. In and upgraded the campus's fire water network and monitoring

* We signed annual work safety responsibility statements and 2025 a total of 2971 occupational health check-ups were systems ensuring that all hardware facilities remain effective

fire safety commitment letters with subsidiaries and branch conducted achieving 100% subsidy coverage. and reliable.companies and revised four safety management policies in * Physical and mental well-being: We provided employees with * Emergency drills: We conducted practical exercises including

2025 including the Fire-Fighting Facilities and Equipment personal accident insurance and over the year conducted high-level evacuation typhoon and flood preparedness drills

Maintenance Management Policy. seven safety and health training sessions covering 360 as well as the annual fire drill involving 1530 participants

participants totalling 2700 training hours. In addition it a 49% year-on-year increase. Over the year we also carried

promoted holistic physical and mental health through employee out ten safety awareness and educational activities covering fire

sports clubs expert medical consultations and psychological safety roduction safety and related topics effectively

counselling courses. enhancing employees' self-rescue skills and emergency

response capabilities.

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Employee Empowerment and Care Employee Health Safety and Benefits

Occupational health and safety

Drug awareness campaign to enhance Building a life-saving safety net: AED Collaborating with medical institutions to

employees' prevention awareness equipment and first aid training safeguard employee health

In July 2025 Newland invited the Drug Rehabilitation Bureau of the In May 2025 Newland's labour union together with the Safety In September 2025 Newland through its labour union and in

Fujian Provincial Department of Justice and the Fuzhou Compulsory Committee organised a special training session on AED equipment and partnership with the labour union of the Second Affiliated Hospital of

Isolation Drug Rehabilitation Centre to host the joint awareness event first-aid knowledge. The training provided a systematic introduction to Fujian University of Traditional Chinese Medicine organised a "Health

"Decoding the Secrets of Drugs Safeguarding a Digital Life" at its AED locations across the campus key techniques for cardiopulmonary Consultation on Constitution Assessment" event at the campus. The

campus with over 120 employees from various subsidiaries resuscitation (CPR) and the correct use of automated external event featured eight specialist departments including traditional

participating. The campaign systematically educated staff on the harms defibrillators followed by hands-on practical exercises. Engaging more Chinese internal medicine and acupuncture and Tuina as well as two

of drugs and prevention measures and strengthened their ability to than 80 first-aid coordinators and employee representatives from specialised service counters with a total of 123 employees registering

recognise resist and avoid drugs representing an important practice subsidiaries and branches the training effectively strengthened to participate. Employees received personalised health guidance based

in Newland's efforts to promote employee health and create a safe employees' self-rescue and mutual rescue capabilities put employee on a constitution assessment and engaged directly with doctors to

workplace environment. life safety and health management into practice and fostered a discuss common occupational diseases and sub-health issues. By

workplace safety culture in which everyone understands first aid and introducing professional medical resources the event extended health

safety is always present. services from passive physical examinations to proactive health

conditioning helping employees understand their own constitutions

acquire daily healthcare knowledge and enhance self-care awareness.

392025 ESG Innovation Environmental Social Governance

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Employee Empowerment and Care Employee Health Safety and Benefits

Employee Care

The Company follows the principles of "Care Motivation and Growth" to systematically advance employee well-being. Through day-to-day care and human-centred interaction we continuously enhance employees'

sense of belonging and well-being; by providing robust welfare and health protection we safeguard physical and mental well-being; and by offering diverse activity platforms we stimulate team vitality fostering

the shared growth of employees and the Company.Workplace culture development Employee wellbeing

We actively develop Party members by regularly carrying We provide regular holiday benefits including birthday

Integration out Party-building activities and effectively enhancing Party Holiday cake vouchers Spring Festival gift packages and New

of Party benefits

building members' engagement. Year lucky bags conveying organisational warmth and

fostering a friendly and harmonious work environment.We coordinate cultural activities around key points

Annual throughout the year and organise events such as Spring

planning

Festival awards Dragon Boat and Mid-Autumn Festival

celebrations and Christmas-themed activities using these

occasions to enrich employees' leisure time.We establish special funds to support intra-departmental We carry out annual employee health check-up promotions

Team-building Health

activities and cross-departmental team-building activities deepening safeguards and reimbursements and actively implement heat-relief

internal communication promoting team collaboration and initiatives to effectively safeguard employees' health and

cultural integration and continuously enhancing safety. In 2025 we distributed 68 cooling supplies.organisational cohesion.

402025 ESG Innovation Environmental Social Governance

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Employee Empowerment and Care Diversity and Inclusion

Employee Care

Tech Open Day: Connecting families and Summer childcare programme: Supporting

the Company Future Lab: Shaping the path of growth together employees and their families

On 10 May 2025 Newland held the second OpenDay Family Day On 28 August 2025 Newland successfully held the third N-Cube Future Newland organised a four-week summer childcare programme for

welcoming 19 employee families nearly 60 participants to the campus. Lab. Centred on the topic of globalisation and talent development the employees which comprised four primary school classes and one

Through immersive tours technology exhibition experiences and robot Company's management engaged in an open dialogue with more than 40 kindergarten class serving 122 primary school pupils and 20 young

dog programming classes family members personally experienced the employees from different departments. Through relaxed and children. In addition to providing all-day care and academic tutoring the

Company's innovative environment and cultural warmth. The event thought-provoking discussions employees deepened their understanding programme incorporated interest-based courses and life education

further strengthened family recognition and sense of belonging providing of the Company's strategy clarified their personal development paths effectively alleviating the difficulty faced by employees' families in

a tangible contribution to employer branding and talent cohesion. and strengthened their sense of belonging under the principle of "Growing arranging childcare during the summer holiday conveying the Company's

Together with the Company". genuine care for employees' families and receiving widespread praise. It

has become a strong practice in fostering harmonious employee relations.

412025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Digital learning platform

Care Diversity and Inclusion

Based on Lark's ecosystem the Company has built a one-stop employee development platform the NPT Learning Hub

realising the online standardised management of the entire training process and clearly presenting learning dynamics through

Employee Development data dashboards thereby enabling large-scale learning and reuse of knowledge and providing a convenient efficient and

easy-to-operate foundation for organisation-wide learning and knowledge accumulation.In 2025 the Company attached great importance to

talent development and knowledge empowerment.Total training investment: RMB2087800 AI-empowered talent development

The Company deeply integrates AI into the talent development system. In 2025 by introducing AI-based course development

Training coverage: 22818 participants tools we shortened the course creation cycle from two weeks to two to three days doubling efficiency. Leveraging this we

independently developed 282 AIGC courses accumulating a total of 12115 learning hours and covering 2410 participants.Average training duration per employee: 21.75 hours For core management and functional teams we launched specialised courses such as Newland AI Leadership and

AI-Empowered Human Resource Management extracted more than 150 AI business application scenarios and precisely

empowered 300 management cadres and more than 90 HR professionals achieving agile iteration of the talent development

Visits to the Company's online learning platform: 22296 system.Specialised training for new employees and on leadership development

These ensured broad coverage and efficient use of The new employee development system has been transformed from a one-off training approach into a three-in-one model

resources. combining agile online bootcamp offline integrated intensive training and professional advanced bootcamp. In 2025 more

than 120 new employees were trained by the system achieving a 100% completion rate. The "Xingtu Programme" leadership

project centred on learning methods online practising in real-world scenarios offline and using tools to facilitate

implementation focuses on enhancing the practical capabilities of newly appointed managers in leading teams and solving

difficult problems. All 40 participants successfully completed the programme achieving a 100% pass rate.

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Employee Empowerment and Care Diversity and Inclusion

Employee Development

International English programme Talent development Received Authoritative Internal lecturer operations: Digital

Recognition intelligence fosters growth

Lanbridge as the Company's English programme designed for Newland Grand Academy the Company's organisational learning In 2025 our internal lecturer courses were closely integrated with

global business operates under the concept of "Language + platform systematically enhances employee capabilities by deeply business scenarios and AI tools with operations centred on honour

Bridge". It develops standardised English courses and integrating AI with business scenarios through the "Four Camps and One certification mechanism optimisation and humanistic care. Teacher's

assessment systems based on business scenarios and Lecture" training system. In 2025 by virtue of this innovative practice Day events were organised and a standardised remuneration system

transforms language learning into practical problem-solving Newland was named the "Annual Benchmark Enterprise for Future was established cumulatively recognising 28 internal lecturers.skills. The programme establishes the Company's international Management Talent Development" in the FUTURE 50 selection. Its Through a mentorship model over 20 lecturers collaborated to pass on

talent standards connects a closed loop of "competency experience was featured across four pages in the annual curated case expertise and support capability development. In national competitions

standards-assessment-incentives-application" and injects collection serving as an important reference model for the industry. three nominated lecturers were awarded the title of "Gold Medal Internal

long-term momentum into global development. Lecturer" earning industry recognition.

432025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Care Diversity and Inclusion

Employee Development国际化英语项目

Comprehensive employee promotion and development system Youth empowerment and fair selection

To support the Company's strategy and employees' diverse growth needs Newland has established a The Company has established a "1+1" dual-mentor system (business mentor + human resources mentor) and

dual-track career development system featuring "vertical professional deepening + horizontal functional five major development systems namely the promotion system communication system performance

expansion" scientifically dividing positions into the management sequence and the professional sequence recognition system mentorship system and training system to provide comprehensive growth support for

with the professional sequence further subdivided into marketing technical and functional sub-sequences. young employees. The Company also leverages programmes such as the Emerging Talent Programme and the

Employees can progress along the management track advancing through Supervisor → Department Manager Intelligent Vanguard Team to provide young employees with extensive international exposure and diversified

→ Director → Executive to become well-rounded managers or develop along the professional track moving incentive opportunities supporting them in broadening their horizons and achieving career advancement. In

through Junior → Intermediate → Senior → Principal → Chief Expert to become recognised authorities in their selecting managers the Company follows the Officer Management Measures evaluates candidates

fields. The two tracks are equipped with an interchange mechanism supporting employees in flexibly comprehensively based on alignment with corporate values work style and performance contributions.choosing their development direction based on their individual characteristics. The Company conducts annual Priority is given to selecting capable managers from key business areas and successful teams ensuring that

job grade assessments to enable every dedicated employee to be recognised and rewarded through a fair and the talent pipeline evolves in sync with business development.transparent mechanism thereby realising continuous enhancement of career value."Grow Workshop" mid- and senior-level manager development programme

To enhance mid- and senior-level managers' strategic vision and ability to solve complex operational issues the Company has initiated the "Grow Workshop" mid- and senior-level manager development

programme. Leveraging the expertise of external specialists the workshop guides management teams to systematically analyse business challenges through cross-departmental collaboration jointly developing

an actionable "portfolio of initiatives". This not only effectively enhances managers' management awareness but also transforms real practical problems into organisational capabilities making the manager

development and training mechanism effective.

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Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

Employee Empowerment and Care Employee Health Safety and Benefits

Vitality in bloom

Employees We have established model shared "Employee Hub" spaces including 11 facilities such as a book bar basketball

hub court gym and band rehearsal room providing regular services to 19344 participants.Recreational Nine cultural and sports clubs within the Company regularly organise interest-based activities such as yoga

activities basketball and badminton and actively host competitions. In 2025 six major cultural and sports events were

held while health and wellbeing facilities including additional AED devices and the upgraded Mothers' Room

were enhanced allowing employees to enjoy work in a vibrant and supportive environment.Energised competitions to strengthen

Marathon Festival: Writing a new chapter team spirit

The 6th Newland Marathon Festival in 2025 themed "Coding In November 2025 Newland's labour union meticulously

the World Running Without Pause" featured diverse events organised the annual employee sports tournament featuring

including 20KM and 10KM individual challenges team events such as a five-a-side football invitational table

relays and a 5KM fun run attracting enthusiastic tennis fun basketball challenges a basketball league and

participation from 232 employees and their families. The badminton competitions attracting 422 employees from

event included specially designed annual commemorative various subsidiaries. On and off the field employees

medals seasonal fruit and energy drink stations along the showcased their skills built friendships through competition

route and full medical and security support. By deeply and strengthened teamwork fully demonstrating the spirited

integrating the Company's vibrant culture the marathon united and striving ethos of Newland employees.promoted a healthy lifestyle and highlighted an organisational

atmosphere of employee solidarity ambition and family

togetherness.

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Quality Management and Product Safety

Governance

The Company always sees quality management and product safety as the foundation of business operations. Through a sound governance Newland's Quality Management Organisational Structure

structure and full-process implementation mechanisms it ensures high-quality delivery of products and services.R&D Procurement Manufacturing Scale Service

The Company has established a cross-departmental Quality Centre to coordinate and supervise the step-by-step implementation of quality department department department department department

management responsibilities. Under it quality managers assist each business organisation through a quality BP model forming a

Senior R&D Quality Manager

two-way assessment and collaboration mechanism. Based on key quality improvement items we continuously optimise our products and

have achieved matrix-based quality governance that gives equal weight to professional coordination and business integration. At the Senior Procurement

Quality Manager

operational level systematic quality control is implemented across the entire chain covering sales order review design and development

Senior Manufacturing

parts procurement and inspection production process quality control shipment inspection warehouse management and after-sales Quality Manager

customer complaints. Management responsibilities at all levels have been clearly defined with well-established authority and Senior Customer Service

accountability forming a coordinated and efficient working mechanism that responds promptly to the product quality requirements of Quality Manager

internal and external stakeholders. Quality Process

System Manager

Strategy

Risk/opportunity type Risk/opportunity description Financial Impact impact timeframe Response measures

Risk Market and Quality and even product safety issues arising during Increase in cost Short- and Strengthen quality control throughout the entire process: Systematically embed quality requirements into all business

reputational risks the after-sales stage of products may trigger a crisis of medium-term links from development to after-sales and ensure the stability and reliability of product quality through standardised

customer trust and damage brand reputation thereby processes and systems.affecting market competitiveness. Improve customer feedback and response mechanisms: Establish an efficient closed-loop complaint handling process

to ensure that quality issues can be quickly identified and addressed in a timely manner and be used to drive

continuous internal improvement so as to safeguard customer relationships and brand image.Opportunity Opportunities in digital The market trend towards the deep integration of Increase in revenue Medium- and Promote integrated innovation in products and services: Based on high-quality intelligent hardware actively expand

payment ecosystem intelligent hardware and digital services has created long-term supporting digital services create integrated solutions and enhance customer loyalty and value per customer.conditions for the Company to expand new markets and Build an open and collaborative industry ecosystem: Proactively cooperate with industry partners and technology

generate value-added revenue by providing highly developers to transform the Company's quality strengths into core ecosystem competitiveness and jointly expand new

reliable highly secure products and solutions. application scenarios and market space.

46

Quality Centre2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Quality Management and Product Safety

Quality国 际an化d英 语Pr项o目duct Safety Certifications

End-to-end security certification for the payment industry Global and domestic payment industry compliance certifications

As a global leader in the POS industry the Company has been deeply involved in the formulation of international The Company proactively responds to the compliance requirements of different markets and has successfully

payment security standards and has officially become a member of PCIPPO (PCI Principal Participating obtained numerous regional security certifications including China UnionPay UPTS Australian APN Brazilian

Organisation) contributing professional insights to the development of the latest PCI specifications. In the ABECS and European Common SECC demonstrating a profound understanding of and comprehensive adaptability

hardware sector the Company has conducted in-depth research into the PCIPTS hardware security standards and to diverse global security standards. In the payment industry our terminal devices all comply with the China

successfully launched new products such as S30 S90 U200 and P70 that comply with PCI 7 certification UnionPay Payment Terminal Device Security Certification and have successively passed the Payment Card

building a robust security defence from the underlying hardware layer. In the software and system sector Industry Data Security Standard (PCI DSS) assessment UnionPay Payment Data Security (UPDSS) Testing

Newland's TOMS terminal management system has obtained PCI DSS certification establishing multiple data technical testing and certification for payment business facilities of non-bank payment institutions and FinTech

security mechanisms such as tamper detection and rapid response to comprehensively safeguard the payment product certification thereby ensuring the security and compliance of the entire payment business process.data security of merchants and users. For production and R&D the Company's factories across multiple locations

and its R&D headquarters have obtained PCIPIN and PCIP2PE certifications achieving full-chain security and

controllability from manufacturing to deployment.Quality Management Process: A Full-cycle Holistic Digitalised Control System

The Company has established a quality management process covering the entire product life cycle ensuring the high-quality delivery of products and services through organisational assurance technological

empowerment and digital collaboration.Whole-process quality control mechanism Product reliability design and validation system Digital quality collaboration and continuous improvement

The Company has established the Quality Management Department an Engineering Quality The Company implements a product development process that combines IPD with agility and Based on Lark we have established an efficient collaborative mechanism covering the full

Department and a Quality Committee to coordinate quality control across the entire chain has established a comprehensive material selection and certification management system closed loop from issue feedback to resolution enabling horizontal inspection coordination

including sales order review design and development component procurement production safeguarding supply chain resilience through a preferred material database tiered case accumulation and sharing and visual analysis of key indicators. We have also

processes shipment inspection warehouse management and after-sales service. In management and a multi-supplier backup mechanism. With more than 20 years of DFMEA established digital management throughout the full process of key components selection

payment system development we strictly implement a three-stage control approach of strict experience we have developed an analysis database covering more than 200 failure modes use and control and systematically built a quality assurance system through matrix-based

control beforehand stringent management during the process and rigorous inspection and established a standardised CBB database to promote platform-based and modular circuit role definitions and standardised operation templates. In addition we operate the "Tree

afterwards: During the demand and design stage compliance security and architecture design. At the same time we equip ourselves with comprehensive reliability design Hollow" suggestion platform to collect quality proposals to encourage all employees to

reviews are conducted with mandatory code reviews and automated testing; during the guidelines test cases and laboratory equipment and extensively carry out hardware participate in improvement transform issue insights and improvement outcomes into

launch stage approval by the Change Committee is required and graded canary releases simulation analyses such as antenna and PCB design simulation and structural finite element organisational knowledge assets and promote the continuous optimisation of quality

and one-click rollback plans are implemented; after launch 7×24-hour monitoring is simulation comprehensively ensuring the reliability and robustness of product design. management.carried out with issues incorporated into a closed-loop review process to continuously drive

process and technological improvements ensuring that quality is controllable measurable

and traceable. 472025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Quality Management and Product Safety

Certifications

* CMMI Level 5 Capability Maturity Model Integration Data security and * ISO/IEC 27001:2022 Information Security Management System CertificateCertification * ISO/IEC 20000-1:2018 Information Technology Service Management System

* Testing maturity certification companies and revised privacy protection Certification

four safety management policies in 2025 including

the Fire-Fighting Facilities and Equipment

Maintenance Management Policy.Technological innovation * Intelligent self-service platform U200 awarded PCI * ISO 22301:2019 Business Continuity Management Certification

7.x certification * ISO 50001:2018 Energy Management System Certification

* Payment technology N950 awarded German Girocard * ISO 9001:2015 Quality Management System Certification

certification Business continuity and * ISO 45001:2018 Occupational Health and Safety Management System

* Fintech product certification others Certification

* First AI enterprise in Fujian Province to achieve Level * Five-star After-sales Service Certification

1 Capability Certification * AEO Certification

* PCI DSS Certification

* ISO 14064 GHG Verification Statement * UPDSS Testing

Environmental protection * ISO 14067 Product Carbon Footprint Certificate * Technical Certification for Payment Business Facilities of Non-bank Payment Financial compliance

* ISO 14001:2015 Environmental Management System Institutions

Certification * China UnionPay Payment Terminal Equipment Security Certification

* TMMI5 Testing Maturity Certification

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Quality Management and Product Safety

Building a Quality Culture Ecosystem

Through four key pathways namely multi-dimensional advocacy capability building policy constraints and closed-loop improvement the Company has systematically built a quality culture ecosystem

characterised by full employee participation and continuous deepening.Internal and external coordination Company-wide suggestion

consolidating professional capabilities programme building an intrinsic closed loop

and the foundation of trust for continuous improvement

We organised six internal quality compliance Leveraging the "Tree Hollow" suggestion platform we

examinations covering 1621 participants with an have established a long-term mechanism for collecting

overall pass rate exceeding 94% continuously quality suggestions. In 2025 we collected a total of

strengthening job competence. Externally we actively 47 suggestions of which 21 were resolved and eight

Multi-dimensional advocacy expanded industry exchanges by organising Policy constraints strengthening valuable ones have been implemented. By

promoting a deep-rooted participation in Huawei study visits and customer quality red lines and encouraging employees to identify issues put forward

quality-conscious culture quality seminars. Through learning from advanced a sense of reverence suggestions and participate in improvements we

practices and engaging in open dialogue we not only have formed an improvement closed loop in which

enhanced our internal professional depth but also everyone acts as a steward of quality injecting

Throughout the year a total of 15 quality-themed We have formulated and strictly implemented quality

reinforced external partners' trust in quality. sustained momentum into quality management.activities were organised including six large-scale red-line documents such as the Regulations on Quality

events covering diverse formats such as training Rewards and Penalties clarifying behavioural

salons and campus fairs attracting extensive boundaries and reward and penalty standards. During

employee participation. A total of 32 the reporting period we issued three centre-level

quality-themed posts were published commendations and one penalty combining positive

simultaneously each averaging over 1000 incentives with strict constraints to continuously

views. Through high-frequency multidimensional strengthen all employees' respect for quality and sense

cultural initiatives we effectively promoted the of responsibility.transition of quality awareness from mere

recognition to genuine endorsement.

492025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Quality Management and Product Safety

Strengthening the foundation of product safety through technical seminars Championing quality together: Embedding excellence from strategy into culture

The Company consistently sees product quality as the core hallmark of globalised development. It actively In 2025 under the main theme of "Championing Quality Together" the Company systematically promoted

advocates the 16-character quality management policy of "speed first customer orientation effective the implementation of a quality management culture by combining strategic discussions of senior

execution and continuous improvement" and promotes the internalisation of quality awareness in mind management with interactive experiences for all employees. In June the first N-cube event brought

and its externalisation in action. Centring on the topic of "quality improvement" the Product Technology together the management team to focus on core quality competitiveness and jointly discuss the strategic

Centre successively held the 15th session of Power Supply and Component Reliability Design Sharing and transformation path of the quality management system from "industry follower" to "industry leader"

the 16th session of Signal Integrity Design Sharing. At these sessions technical backbones systematically making it clear that quality premium would be used to build a new competitive advantage. In December

reviewed the fundamental theories of reliability design using real company cases and provided in-depth the Company held the Quality Month and innovatively set up four interactive checkpoints for a "Quality

analyses of key application points including power management component selection and signal Carnival". Among them the "Quality Fault-Finding Game" transformed typical problems in daily operations

integrity. Senior experts participated on-site to answer questions using case reviews and interactive into immersive scenario cases by enabling employees to act as "quality detectives" to proactively identify

discussions to help R&D teams gain a more intuitive understanding of the profound impact of design on omissions and analyse root causes in real situations internalising lessons from others into their own

product reliability. The sessions marked by lively exchanges reinforced employees' commitment to quality experience through immersive thinking. The activity attracted more than 400 employees received 32 likes

management and further consolidated Newland's culture of driving quality through technology and winning and 138 interactions and promoted the shift of quality awareness from passive acceptance to proactive

the market through quality. internalisation through an entertaining and educational approach achieving resonance between strategic

consensus and organisation-wide practice.

502025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Quality Management and Product Safety

Empowering every employee: Building expertise in secure software development and performance testing

From August to September 2025 the Company focused on enhancing core software quality and security capabilities and organised a Indicators and performance

special training programme on Software Performance Development and Testing. A total of 81 developers from the R&D centres in Fuzhou

Nanjing and Beijing participated throughout the programme and all passed the assessment. Meanwhile in order to strengthen secure

development lifecycle management we also conducted special training on secure development covering 65 key R&D personnel with Key indicators Progress in 2025

the pass rate of both training programmes reaching 100%.For the specific business scenarios of the Product Department in the big data industry the training was specially customised to include

a secure development course for the department's 13 employees providing targeted empowerment around practical pain points such as

data flow risks and privacy protection. The post-training evaluation showed that the overall score for performance development and

testing training reached 9.92 and the overall score for secure development training reached 9.95 (out of 10). Participants generally

reported that the course content closely addressed frontline R&D pain points was highly practical and effectively enhanced their teams'

engineering capabilities in software performance optimisation and secure coding. Number of

participants in 3297

quality training

Number of quality

training sessions 142

512025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Data Security and Customer Privacy Protection

Governance

The Company has always regarded data security and customer privacy protection as important cornerstones of sustainable corporate development strictly complied with the laws and regulations of the places where

we operate and remained committed to building a reliable security system and governance capability covering the entire business chain working with all parties to deliver security value and jointly build a

trust-based digital future.We have established a dedicated working mechanism directly led by management. By combining top-level leadership with position-based commitments we ensure the effective integration of data protection efforts

from strategy to execution and continuously strengthen awareness of data security responsibilities within the organisation. Under this framework the Company actively responds to increasingly complex global

data compliance requirements continuously addresses regulatory changes in China and overseas and systematically advances the development of personal information protection and data security management

systems through policy improvement technology upgrades full-coverage training and targeted rectification thereby building a compliance assurance system covering the entire business chain.GDPR-specific training

In 2025 the Company launched a dedicated compliance project in response to international compliance requirements such as

the EU General Data Protection Regulation (GDPR).Internalisation of regulations and alignment of understanding: We conducted GDPR-specific training covering the headquarters

and European branches with cumulative employee attendances exceeding 400. The management participated throughout the

learning process aligning the compliance awareness baseline of all staff.Business process and system rectification: We implemented Cookie compliance upgrades for the official website and internal

business systems deployed a user consent management mechanism promoted the completion across multiple systems of

privacy agreement pop-up windows data display controls permission optimisation and compliance adaptation for

cross-border storage and established a compliance review mechanism prior to system launch strengthening risk control at

the source.Policy and document development: We formulated and issued policy documents such as the Data Security Management

Measures and Data Classification and Grading Protection Strategy and established a cross-border management regulatory

system covering the entire data lifecycle providing policy assurance for compliant business operations.

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Data Security and Customer Privacy Protection

Strategy

Risk/opportunity type Risk/opportunity description Financial Impact impact timeframe Response measures

Risk Risk/opportunity type As regulatory oversight under the GDPR the Personal Fines Short- and Conduct regular compliance self-inspections: Ensure that all of the Company's data processing activities

Risk Information Protection Law of the People's Republic of medium-term continuously comply with core laws regulations and regulatory requirements such as the Cybersecurity Law and

Compliance and legal risks China and other regulations continues to intensify the Data Security Law and establish a routine review mechanism.incidents involving data and customer privacy breaches Engage third-party institutions to conduct annual information security audits: Introduce independent and

will trigger risks of legal proceedings regulatory authoritative external audit institutions to carry out comprehensive assessments and certification of the Company's

penalties and business interruption. information security management system ensuring that the effectiveness of internal controls is objectively

verified.Opportunity Reputational and trust Data security has become a forefront focus of public Decrease in revenue Short- and Establish an efficient security incident emergency response and closed-loop management mechanism: Clarify the

risks concern and data breach incidents will seriously medium-term classification standards and response procedures for security incidents and ensure that the entire process from

damage brand reputation leading to customer loss. identification analysis and handling to review is traceable and accountable.Communicate with customers in a timely and transparent manner: When potential or actual data security impacts

occur proactively and clearly disclose information to customers and the public maintain trust and reduce

reputational damage.Opportunity Opportunities in market Outstanding data security protection capabilities can Increase in revenue Medium- and Deeply integrate security and privacy protection requirements into the product research development and design

competition become a core competitive advantage that enhances long-term process: Systematically embed privacy compliance reviews and security requirements at the product planning and

customer confidence and helps expand markets with design stage to ensure that new products are inherently secure by design.higher security requirements. Proactively communicate security value to the market through SOC reports and other forms: Regularly publish

transparency reports and other disclosures elaborating in detail on the Company's data protection philosophy

technologies and practices and transforming security capabilities into market trust and brand premium.

532025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Data Security and Customer Privacy Protection

The Company continuously strengthens its data security and privacy protection capabilities comprehensively safeguarding the integrity availability and confidentiality of customer information through

technological upgrades closed-loop processes and awareness empowerment.Certification systems and policy implementation Technical protection and in-depth defence Process control and emergency response

The Company has obtained a number of authoritative international and We continuously strengthen multi-layered technical protection across A closed-loop management mechanism for new security incidents has

domestic certifications including ISO/IEC 20000-1 Information networks hosts applications data and other areas by deploying been introduced which leverages DingTalk's automated workflows to

Technology Service Management ISO 27001 Information Security zero-trust solutions and multi-factor authentication (MFA) implementing automatically assign security incidents to responsible persons and track

Management PCI DSS Standard and UPDSS Testing certifications. In least-privilege access control mandating the installation of EDR and host their handling. A new automated log analysis workflow has been

accordance with internal policies such as the Information Security and security protection tools and conducting regular virus and Trojan horse established to assess attack behaviours in real time and automatically

Information Technology Service Management Manual and Data scans. Antivirus software coverage increased by 49% year on year in blacklist malicious IP addresses and domain names. Systems such as

Classification and Grading Protection Strategy we have integrated graded 2025 and the number of installed endpoints increased by 110%. At the traffic analysis host intrusion detection and Web application protection

data management and control into daily operations. Data are used in a data level we have established an enterprise data map and asset are deployed and attack-and-defence drills and phishing email tests are

compliant permission-based manner to ensure that security and inventory identifying core and important data and implementing conducted regularly to continuously enhance proactive defence and

compliance requirements are effectively implemented. secondary backup and adopted encrypted storage for cross-border data emergency response capabilities. Meanwhile security threat messages

and deployed it in a compliant cloud environment ensuring transmission are routinely shared via email and group chats to strengthen security

and storage security. awareness among all employees.Indicators and performance Annual forum on "Gaining Insight into Data Security Risks and Strengthening

Information Security Defences"

Key indicators Progress in 2025 In 2025 the Company successfully held its annual data security forum to provide all employees with a systematic

Number of information security interpretation of the latest developments in domestic and international data protection regulations and conduct in-depth

training sessions 4 analysis based on typical industry risk cases. The forum featured a dedicated session for department heads and technical

leaders from R&D operations and product teams to sign key-position security responsibility agreements on-site to

Authoritative information ensure that data security responsibilities are clearly defined cascaded and assigned to specific individuals. By

security certifications 4 combining regulatory interpretation case warnings and responsibility commitments we effectively enhanced all

employees' compliance awareness and risk prevention consciousness and promoted the transformation of data security

Customer personal 0 requirements from policy documents into shared understanding across positions.information leakages

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Customer Service

Protection of customer and consumer rights

The Company consistently adheres to a "customer-centric" service philosophy. Through a systematic service framework diversified feedback channels and regular satisfaction monitoring it transforms customer

feedback into actionable improvements effectively safeguarding consumer rights and continuously enhancing the customer experience.Organisational assurance and service network Convenient feedback and closed-loop handling Regular satisfaction monitoring and improvement

The Company holds an after-sales service certificate and has The Company provides multiple service channels including The Company proactively initiates satisfaction surveys at key

established 15 sales and service centres and four maintenance hotline support online chat and App feedback. All service touchpoints and customers can make real-time online

service hubs in key cities and regions ensuring a rapid submissions are centrally managed through an intelligent evaluations through the "Hi Xiaoshi" mini-programme and our

response to after-sales service and training needs. At the customer service system for routing tracking and follow-up. official website. The system automatically compiles core

same time leveraging dedicated repair hotlines the "Hi We have established a standard closed-loop process of indicators such as CSAT and dynamically presents analysis

Xiaoshi" mini-programme and our WeCom account "acceptance-processing-follow-up" to ensure that every results through data dashboards. Satisfaction data are linked

customers can easily submit inquiries and service requests. enquiry or complaint receives a timely response and to team performance to continuously drive the ongoing

Our system receives and processes submissions in real time substantive resolution and to transform frequently asked optimisation of service processes personnel training and

and allows users to track progress at any time ensuring full questions into a basis for improving products and services. system functions. At the same time the cross-departmental

transparency and traceability throughout the service process. Product Service Management Platform is deeply integrated with

the production and manufacturing system providing

underlying support for precise and efficient service response.In 2025 the Company's customer satisfaction score reached

95.88 points.

552025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Sustainable Supply Chain

Supplier Management and Review System

The Company has established a systematic and digitalised supplier management and review system and has formulated and strictly implemented policy documents such as the Supplier Management Procedures

Supplier Development Management Standards Supplier Assessment Management Standards Security Management Measures for Trading with Import and Export Partners ensuring that the entire supply chain

process is standardised and controllable. By building digital systems such as a supplier collaboration platform we have achieved real-time sharing and synchronisation of data covering purchase orders

warehousing and logistics and capital flows. At present hundreds of suppliers have been included effectively empowering partners in their digital and intelligent transformation and upgrading and enhancing

the overall collaborative efficiency and risk resilience of the supply chain.On this basis the Company has established a supplier review mechanism covering the full cycle of admission assessment application and exit ensuring that all partners possess lawful qualifications a sound

reputation and stable supply capabilities.Multi-dimensional Dynamic management of Performance assessment Digital and intelligent Sustainable supply

admission review the Qualified Supplier Register and graded application warehousing management chain development

A four-tier screening process is implemented for Suppliers that have passed the multi-dimensional In accordance with the Supplier Assessment The Company has introduced cloud warehousing In long-term cooperation with suppliers the

potential suppliers: First qualification verification admission review will be formally included in the Management Standards we conduct a solutions to enhance warehousing and logistics Company advocates green procurement standards

including checks on business licences industry Qualified Supplier Roster and subject to dynamic comprehensive quarterly assessment of suppliers efficiency through digital and intelligent means and introduces environmental technologies and

qualifications financial standing and compliance management. We regularly across dimensions such as quality timeliness including real-time inventory monitoring measures to effectively reduce impacts on the

records while also taking environmental and review and update the register and promptly service and R&D automated picking and data analysis thereby ecological environment. Through regular

social responsibility factors into account and adjust suppliers' status on the register based on and classify them into grades A B C and D. improving operational accuracy and customer assessments and ongoing cooperation we

encouraging partners to jointly uphold the their supply activity validity period of Qualified suppliers rated A or B may receive order experience. By leveraging the cloud warehousing encourage suppliers to adopt energy-saving and

philosophy of green development; second qualifications and initial cooperation performance allocation incentives and suppliers rated C may be model for precise allocation and distribution we emission-reduction technologies in their production

verification of agency authorisation confirming ensuring that the register consistently reflects subject to discretionary order reductions. If rated C reduce unnecessary inventory build-up and and operations strengthen the protection of

cooperative relationships with original genuine and effective partner resources. As the for two consecutive quarters targeted support will repeated logistics transfers effectively lowering employee rights and interests and build supply

manufacturers or higher-tier channels; third basis for prioritising business cooperation this be initiated. Suppliers rated D are deemed operating costs and environmental burden. chain partnerships founded on environmental

on-site inspection involving on-site assessment of register helps identify core suppliers with good unqualified and required to rectify within a protection and social responsibility thereby

supply chain capabilities production facilities and reputations and reliable quality thereby prescribed time limit or be eliminated. Suppliers effectively enhancing operational stability and

technical standards based on project requirements; safeguarding supply chain stability and with no transactions for six consecutive months or supply chain resilience and reducing potential

fourth sample validation confirming that product collaborative efficiency. whose performance fails to meet standards are compliance and environmental risks.performance meets the Company's requirements directly removed from the register. Through graded

through quality inspection and small-batch pilot management and dynamic adjustment we

testing. continuously optimise the supplier structure and

enhance the overall quality of the supply chain.

562025 ESG Innovation Environmental Social Governance

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Sustainable Supply Chain

Supplier Management and Review System

In 2025 the Company continued to deepen capacity building in supply chain management. Focusing on the goals of "efficiency compliance and collaboration" we improved the internal employee

development system and empowered external supply chain partners thereby driving quality improvement and efficiency enhancement across the overall value chain in both directions.Internal employee training: Equal emphasis on systematisation and practical application "Fuyao Plan" deepening practical implementation

A total of two centralised procurement thematic training sessions were organised throughout the year covering employees in

To build a healthy and win-win supply chain ecosystem the Digital

relevant positions at all subsidiaries and branches. The "Four-Week Comprehensive Training" for new employees was upgraded

Commerce Centre officially launched the "Fuyao Plan" in 2024 providing

into modular courses incorporating a supply chain risk simulation component. With the online platform providing continuous

systematic support to ecosystem partners across multiple dimensions

learning resources we facilitated over 420 instances of online learning and assessment throughout the year. Additionally

including policies business opportunities training and traffic to help

approximately 76 specialised training sessions were conducted for internal and contract factory quality personnel with 1697

them enhance their core competitiveness. In 2025 the programme was

participants continuously strengthening job skills and compliance awareness.upgraded into a regular empowerment model. Building on the original

support framework it introduced the "Supplier Growth Certification"

Supplier empowerment training: Combining diversity and regularity system incorporating training participation and compliance performance

into the partnership assessment mechanism encouraging suppliers to shift

* Regular collaborative communication: We engage suppliers through a combination of weekly online meetings and on-site from passive cooperation to proactive development. At the same time we

production line audits focusing on themes such as technological innovation quality improvement and health safety and held the inaugural "Annual Outstanding Model Partner" selection and

environmental protection. This approach fosters regular multi-dimensional interactions with suppliers consistently sharing event. By showcasing benchmarks and facilitating experience

enhancing day-to-day collaboration and the efficiency of issue resolution. exchange this initiative fosters a learning-oriented symbiotic supply chain

* Integrating online platforms and offline conferences for empowerment: We leverage the "Supplier Collaboration Platform - ecosystem enabling collaborative growth in capability building and value

Learning Centre" to continuously expand online course offerings by adding specialised modules on topics such as Green Supply sharing for both parties.Chain and Data Security Compliance. The platform supports course replay and online assessments. In parallel we host an

annual supplier conference inviting partners to participate and using executive-level dialogue to further align objectives and

deepen mutual understanding.* Specialised quality training: We provide suppliers with specialised quality training on PCN management process control

5-why analysis and 8D reports through conference calls the SRM platform and on-site evaluations. A total of 66 sessions

were conducted throughout the year covering more than 1600 supplier personnel effectively enhancing supply chain quality

control capabilities and problem traceability.

572025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Equal Treatment to SMEs

The Company has always adhered to the principles of fair and transparent cooperation providing equal development opportunities and resource support to all partners and customers regardless of their size. By

building an open and inclusive cooperation ecosystem and a precise and pragmatic service system the Company has continued to empower small and medium-sized enterprises (SMEs) and micro- and small-sized

merchants helping them enhance their core competitiveness amid the wave of digital commerce and share in the achievements of development.Productising AI capabilities and opening up the ecosystem to promote Inclusive access to cross-border payment infrastructure to safeguard

equality in business decision-making and technology use equal opportunities for participation in global markets

Leveraging our self-developed "Xingyi Pay Exclusive Large Model" the Company packages complex AI The Company takes the lead in responding to the People's Bank of China's initiative to build a unified gateway for

capabilities such as data analysis compliance review intelligent customer service and marketing innovation cross-border QR codes and works with WeChat Pay to enable the "zero-modification" acceptance of overseas

into AI Business Insights AI Merchant Review Assistant Xiaoyi Miaoda AI Marketing Assistant and other wallets by domestic merchants. Leveraging a merchant base of over one million across 12 major industries and

lightweight intelligent agents enabling small- and micro-sized merchants to obtain enterprise-level operational 64 segmented scenarios all kinds of small- and micro-sized merchants including community shops and scenic

decision-making support and service response without the need for professional teams. Additionally we open area stalls can seamlessly serve the QR code payment needs of overseas visitors to China without incurring

our large model capabilities to SaaS providers banks and ecosystem partners through the Xingyi Agent additional hardware costs or bearing the burden of system development. This initiative breaks down the natural

Development Platform (LLMOps) and the Payment Industry MCP Hub significantly lowering the barriers to AI barriers that large commercial entities often have over inbound consumption benefits allowing every diligently

technology development and application. This practice has effectively eliminated the capability gap faced by small- managed SME to equally share the opportunities brought by visa-free policies and cross-border trade. It enables

and medium-sized merchants in digital transformation ensuring that they enjoy the same technological every small shop in China to participate in and benefit from globalised consumption reflecting our social

empowerment as large merchants in core areas such as business analysis compliance access customer service commitment to safeguarding grassroots commercial vitality and empowering SMEs to integrate into the

and brand marketing and is a direct manifestation of the concepts of digital inclusion and social inclusiveness dual-circulation economic framework.at the level of corporate social responsibility.Transparent strategic information and ecological synergy to safeguard Deepening presence in vertical industry scenarios to respond to the

partners' right to be informed and participation differentiated needs of SMEs with customised financial services

The Company regards small- and medium-sized channel partners and scenario service providers as an ecosystem In 2025 the Company focused on small- and micro-sized merchants in the chain hotel sector gaining in-depth

community. Every year we hold an Ecosystem Partner Conference to systematically share our strategic direction insights into their core operational scenarios such as new store openings brand transitions and renovation

and product plans and arrange special seminar sessions for candid exchanges on issues arising in cooperation projects and identifying their key funding challenges. Through the "Youlian Loan" product under the "Youqi Loan"

and development opportunities. The 2025 AI Co-creating Digital Business Ecosystem Partner Conference attracted series we provided tailor-made financial solutions to address these challenges. The solution precisely matches

representatives from hundreds of SMEs across the country. Through senior management dialogues and policy the capital turnover cycle and demand characteristics of the hotel industry effectively addressing the difficulties

interpretation it helped partners keep abreast of market developments and industry trends in a timely manner. of access and slow connection caused by traditional financing channels' lack of industry understanding. This

This mechanism ensures that SME partners enjoy equal status with large partners in access to information and practice reflects Newland's commitment to ensuring that SMEs are not overlooked by standardised services

strategic coordination avoiding delayed decision-making or resource misallocation caused by information prioritising deep industry insight over size-based service standards to meet the differentiated needs of niche

asymmetry and constitutes an institutionalised practice of equal business partnerships at the corporate sectors and ensuring that every SME within each field receives financial support that is both considerate and

governance level. effective.

582025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Equal Treatment to SMEs

Asia-Pacific Partnership Conference: Building a regional Digital empowerment of national subsidies: Enabling SMEs to

ecosystem together equally share policy benefits

In September 2025 Newland NPT successfully held its Asia-Pacific Partnership Conference in Sanya In 2025 the Company used a digital platform to support the implementation of the national consumer goods

Hainan attracting nearly 100 key customers and partners from 14 countries and regions across the trade-in subsidy policy. Whether a small home retail shop or a dedicated appliance store merchants could

Asia-Pacific. Centred on cutting-edge trends such as payment cyber security AI and biometric easily register and manage products through the platform launching subsidy activities within days. We

applications the conference brought together industry representatives from VISA HDFC Qualcomm and used technology to remove procedural barriers ensuring that roadside shops and large shopping centres

others to engage in in-depth dialogue on regional collaboration and business model innovation. Multiple enjoyed equal access to policy participation and resource support. This approach allowed substantial policy

partners used real cases to showcase the results of their cooperation fully demonstrating the Company's benefits to be fairly shared by every diligently managed business supporting enterprises across all

equal respect for SME partners in the region and its sincerity in jointly building the ecosystem. industries to progress steadily in a complex market while making payments more valuable and store

operations simpler.

59Governance Performance

Compliance and Integrity to Foster Robust sustainable Development

Topics responded to

Corporate governance

Stakeholder communication and cooperation

Business ethics

Risk management and internal control compliance

Alignment with UN SDGs2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Corporate Governance Organisational Structure

Newland Digital Technology Co. Ltd.The Company's Board of Directors consists of five members

of whom independent directors account for 40%. Under the

Board of Directors four committees have been established

including the Audit Committee the Strategic Committee

the Nomination Committee and the Remuneration and

Appraisal Committee. General Meeting

To effectively implement governance decisions the of Shareholders Principal subsidiaries

Company established 11 functional departments to

safeguard shareholders' rights and interests through a clear

system of powers and responsibilities achieving the

alignment of standardised governance and operational Audit Committee

efficiency.Strategic

Directors' and Senior Committee Board of Directors

Management Remuneration Nomination Committee

Governance System Remuneration and

Appraisal Committee

The Board of Directors has established a Remuneration and

Appraisal Committee and in accordance with the relevant

requirements of the Code of Corporate Governance for Listed

Companies revised in 2025 has formulated the

Remuneration Management Policy for Directors and Senior

Management. Through organisational arrangements and

policy refinement we have systematically optimised the

remuneration structure approval process and incentive

and restraint mechanisms clarified that remuneration shall

reasonably comprise basic remuneration

performance-based remuneration and medium- to

long-term incentives further strengthened the linkage

between remuneration and operating performance

individual contribution and sustainability and effectively

enhanced the Company's governance standards.

61

President's Office

Innovation & Development

Centre

Securities Investment

Centre

International Business

Centre

Public Affairs Centre

Operations Management

Centre

Digitalisation Centre

Finance Centre

Audit Centre

Legal Affairs Centre

Administration Centre

Fujian Newland Payment Technology Co. Ltd.Fujian Postar Payment Technology Limited

Shanghai Shanhao Intelligent Technology Development Co. Ltd.Fujian Newland Auto-ID Tech Co. Ltd.Fujian Newland Software Engineering Co. Ltd.Beijing Yada Communication Network Co. Ltd.Newland Fintech segment (Microcredit Commercial

Factoring Financing Guarantee Zhoulian Information)2025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Corporate Governance Governance Structure and Organisational Assurance

Operation of the General Meeting of Shareholders Board of Directors

and Board of Supervisors and Stable Transition of the Governance Structure

The Company ensures the standardised and efficient operation of the General Meeting of Shareholders Board of Directors and Board

of Supervisors as well as the smooth transition of the governance structure providing a solid guarantee for strategic decision-making Launching "Party-building Co-creation" to promote

and sustainability. exchanges in digital business

General Meeting Audit Committee

2 of Shareholders 3 meetings

In July and December 2025 Newland's Party Committee together with the Party

Branch of the Digital Intelligence Office of Fujian Branch of China Mobile Group Online

Marketing Service Centre conducted two "Party-building Co-creation" learning

activities. Both parties carried out in-depth exchanges on topics such as digital

10 4 transformation and intelligent upgrading explored opportunities for business

cooperation under the guidance of Party building and promoted the deep integration of

Board of Directors Board of Supervisors

meetings meetings Party building with cutting-edge business.All meeting procedures are rigorous and information disclosure is accurate. Meanwhile the Company successfully completes

related work such as the cancellation of the Board of Supervisors revises Articles of Association and Rules of Procedure for

the General Meeting of Shareholders and other core policies and lawfully advances the procedures for commercial registration

changes and announcements thereby achieving a lawful compliant and smooth transition of the governance structure. Organising finance-themed joint Party-building to

support regional development strategies

Through a Party-building joint activity held in December 2025 with the Financial

Affairs Office of the Fujian Provincial Party Committee and the Fujian Digital Finance

Association the Company focused on digital finance and regional economic

development strengthened strategic communication with local regulators and industry

Party Building Leadership and Organisational Development organisations serving as an important example of how party-building can guide

strategic implementation and support regional development.Newland's Party Committee adheres to standardised management and the development of organisational vitality as the

foundation and continues to consolidate the basis of Party building work. Internally strengthens Party members' sense of

honour and organisational cohesion through initiatives such as themed activities for female Party members and awarding the

"50 Years of Honour in the Party" commemorative medal to senior members; externally we actively expand the mechanism for

joint learning and co-construction empowering strategic collaboration and business development through high-quality Party

building.

622025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

Stakeholder Communication and Cooperation Protection of Minority Shareholders' Rights

The Company always places the protection of minority shareholders' rights at the core of its governance system. On the one hand through diversified communication channels such as regular reports ad hoc

announcements and performance briefings we ensure that minority shareholders can obtain timely and equal access to operational updates and the progress of major matters thereby fully safeguarding their

right to know. On the other hand we strictly safeguard the procedural fairness and transparent operation of the General Meeting of Shareholders have fully opened online voting channels and encourage minority

shareholders to fully exercise their rights to speak and vote either in person or online effectively realising their decision-making participation and ensuring that the governance process is both fair and transparent.In terms of investment returns we implement a clear and stable profit distribution policy that takes a long-term approach into account while maintaining sustainability

and actively rewarding shareholders. In 2025 we distributed dividends of RMB221 million and repurchased shares of RMB380 million taking practical action to

safeguard shareholders' expected investment returns. On this basis the Company will continue to optimise the shareholder return mechanism further enhance the

continuity and predictability of the dividend policy and effectively strengthen the sense of gain and long-term trust of minority shareholders.Code of Conduct for Controlling Shareholders

The Company imposes clear constraints on the conduct of controlling shareholders and major shareholders in order to safeguard the overall interests of the Company and the effective operation of its governance

system. Through policies regulations and procedural design the Company ensures that controlling shareholders exercise their rights in accordance with the law avoids any negative impact of their conduct on the

governance structure and through an open and transparent decision-making platform promotes the equal participation of all shareholders in the deliberation of major matters.In key areas such as strategic planning investment decision-making and profit distribution the Company consistently takes shareholders' interests and rights as the starting point ensuring the transparency of

the decision-making process and the fairness of outcomes. By continuously improving internal oversight mechanisms and refining guidance on powers and responsibilities we effectively prevent controlling

shareholders from harming the legitimate rights and interests of minority shareholders thereby building a shareholder relationship framework featuring shared interests and coordinated governance.

632025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Stakeholder Communication and Cooperation Information Disclosure and Investor Relations Management

Information disclosure

With our professional transparent and robust performance in

With rigorous compliance as a foundation the Company efficiently completed the capital market we have continued to earn recognition from all

the disclosure of 4 periodic reports and 70 ad hoc reports during the year stakeholders and received a number of authoritative honours.and actively innovated disclosure formats by integrating investor enquiries

with periodic reports and designing and producing a "one-page overview"

significantly enhancing the clarity and readability of information disclosure.Total new research New quality

reports added productive forces

Investor relations management

Listed company Board Secretary

In terms of investor relations management we rely on a systematic and 45 value Top 50 recognised as

diversified communication strategy to maintain transparent efficient and

positive interactions with the capital market. Throughout the year we New Fortune

promptly responded to 125 investor questions on irm.cninfo.com.cn Top 300 Golden

organised 30 external exchange activities and held 1 annual results Board

briefing effectively safeguarding investors' right to know and right to Secretary

participate.

642025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Business Ethics and Compliance Business Ethics

The Company adheres to integrity as its foundation treating anti-commercial bribery anti-unfair competition and the regulation of related-party transactions as the core elements of business ethics development

while continuously improving the relevant management mechanisms.Anti-commercial bribery

The Company upholds the principle of professional integrity setting out workplace conduct

standards for all employees in the Employee Professional Conduct Management Measures and

issuing the Regulations on Strengthening Integrity Management for Managers and Designated

Positions for key roles. Through these measures it systematically establishes a risk

prevention and control framework for integrity fostering a transparent and upright business

environment.Fair competition

The Company adheres to the philosophy of fair competition proactively benchmarks against

high international standards and has successfully obtained AEO certification demonstrating

with authoritative credentials our achievements in integrity in the areas of trade security and

compliance internal control and commercial credit and continuously consolidating our image

as a trustworthy market entity.Related-party transactions and horizontal competition

The Company is guided by the principles of honest operation and strictly regulates

related-party transactions and horizontal competition. We sign a Non-Compete Agreement with

our controlling shareholders clearly defining independent business divisions and operational

areas to minimise potential conflicts of interest. The Company maintains efforts to reduce

related-party transactions wherever possible and for those that are necessary and

unavoidable it strictly follows market-based principles and fair pricing to ensure transparency

and fairness effectively safeguarding the legitimate rights and interests of all shareholders.

652025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Business Ethics and Compliance Risk Management and Internal Control Compliance

Governance

The Company regards a comprehensive and prudent risk management and internal control compliance system as the core safeguard for achieving strategic objectives and ensuring sustainable and healthy

development. We are committed to building a risk governance structure with clear hierarchy and agile response and by deeply embedding risk management and internal control into business processes proactively

identifying assessing and responding to various internal and external risks thereby maintaining business resilience in a complex and rapidly changing business environment safeguarding shareholders' rights

and interests and earning the long-term trust of customers and regulators. The Company has established a three-tier risk governance structure with the Board of Directors responsible for top-level design and

oversight the management directly leading and all business units and functional departments jointly implementing it and has clearly defined the responsibilities of the "three lines of defence" to ensure the

independence professionalism and effectiveness of risk management.Strategy

Risk/opportunity type Risk/opportunity description Financial Impact impact timeframe Response measures

Risk Risk of failure of If the Company fails to effectively Fines Short- and Continuously optimise internal control systems and processes: Establish a dynamic mechanism for updating systems to ensure that core internal control

internal control implement stringent internal compliance compensation medium-term policies such as the Employee Code of Professional Conduct remain closely aligned with the latest regulatory requirements and business practices and

mechanisms control mechanisms it may be unable to provide clear actionable compliance guidance for all employees.promptly identify and rectify violations Strengthen internal supervision and review mechanisms: Rigorously implement the annual internal audit plan conduct special inspections in high-risk

and directly expose itself to regulatory areas such as anti-money laundering and data security and verify the effectiveness of control measures through systematic testing.penalties legal action and the risk of

business licence revocation.Risk Business continuity If the internal control system for the Decrease Short-term Deeply embed business continuity management into the internal control system: Formulate and issue relevant dedicated policies clarify the objectives

risk business continuity of key businesses such in revenue responsibilities and processes of each business line and ensure that management requirements are structured and institutionalised.as payment acquiring is absent or Ensure the effectiveness of systems through clear contingency plans and regular drills: Develop detailed emergency response plans based on business

contingency plans fail once incidents such impact analysis and regularly organise end-to-end emergency switch-over drills to verify the feasibility of the plans and the response capabilities of the

as system failures occur the inability to team.respond and recover swiftly will lead to

prolonged service interruption triggering

customer claims and attrition.Opportunity Brand and trust An open transparent and verifiable Increase in Medium- Transform internal control and compliance capabilities into brand assets: Proactively disclose the achievements of internal control development and

opportunities internal control and compliance system is revenue and compliance practices through channels such as annual reports and the official website and shape "robust compliance" into one of the core brand labels.the strongest proof of the Company's sound long-term Win market trust through proactive communication and disclosure: Actively communicate the Company's risk management philosophy and specific measures

operations and can be transformed into to investors customers and regulatory authorities and translate rigorous internal control practices into communication capital that strengthens external

strong brand credibility and become a confidence.differentiated competitive advantage in

attracting high-end customers and

business partners.

662025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Business Ethics and Compliance Risk Management and Internal Control Compliance

Compliance risk internal control mechanism

To ensure our sustainable and robust development we have established a systematic multi-dimensional internal control mechanism for compliance risks comprehensively covering all aspects of business

operations through the four core modules of policies regulations organisational assurance supervisory procedures and specialised risk control.Organisational assurance Supervision process

The Company has established a dedicated internal The Company has established diverse online and

control team responsible for coordinating the offline reporting channels including public opinion

development evaluation and optimisation of the mailboxes OA system dedicated telephone lines

internal control system and for verifying the and email addresses supporting both named and

effectiveness of the system through annual internal anonymous reporting. It also strictly implements a

audits and risk investigations. In 2025 we "every case must be verified verified cases must

completed our internal audit and no be addressed" process achieving zero incidents of

non-compliance issues were identified in employee misconduct or violations in 2025.anti-money laundering or counter-terrorist

financing demonstrating the practical effectiveness

of the internal control mechanism.Policies and regulations Specialised risk control

The Company based on core policies such as the Guided by regulatory requirements the Company

Employee Code of Professional Conduct and systematically optimises its anti-money laundering

Employee Disciplinary Policy has clearly defined internal control policies processes and role

the behavioural boundaries for all employees in responsibilities integrating business systems with

relation to business ethics laws and regulations the anti-money laundering platform to establish a

and internal rules and imposes higher-standard closed-loop data quality management mechanism.integrity management requirements on management By establishing a risk-based hierarchical control

personnel and personnel in key positions. Relevant system we achieve differentiated governance over

policies remain aligned with external regulatory customers products and channels and embed

requirements through a dynamic update compliance requirements into every stage of the

mechanism ensuring the timeliness and pertinence front middle and back offices through regular

of compliance control. training significantly enhancing all employees'

compliance execution capability.

672025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

Business Ethics and Compliance Risk Management and Internal Control Compliance

"Know the Rules Act with Confidence": Data

Innovative anti-fraud campaign recognised compliance project strengthens global

as "Anti-Fraud Action Pioneer" compliance foundation Indicators and performance

In active response to the national call for nationwide anti-fraud In 2025 the Company systematically launched the global data Key indicators Progress in 2025

the Company established a multidimensional publicity framework compliance project "Know the Rules Act with Confidence"

combining online communication with offline awareness sessions. focusing on international standards such as the GDPR.Online we innovatively produced the anti-fraud short film Life Collaborating across multiple departments it enhanced policies

Trailer which was shared by authoritative institutions such as the optimised processes and upgraded information security Employee violations of

National Anti-Fraud Centre and the Criminal Investigation Bureau measures while simultaneously implementing specialised 0laws or discipline

of the Ministry of Public Security achieving widespread national compliance training. A series of GDPR-focused training sessions

reach. Offline simultaneous educational sessions were conducted was held in Europe and domestically covering over 300

to effectively raise public awareness of fraud prevention. These employees in total laying a solid compliance foundation for the

efforts were highly recognised by the Fuzhou Anti-Fraud stable development of the Company's global operations.Coordination Office with the Company receiving a letter of Internal risk training

commendation and being awarded the honorary title of sessions 52

"Anti-Fraud Action Pioneer".Total attendance at internal

risk control training 4358

Total duration of internal risk

44.6 hours

control training

682025

Environmental Social and Governance Report Introduction

ESG Innovation Environmental Social Governance

Governance Performance Performance Performance Performance Appendices

Business Ethics and Compliance Risk Management and Internal Control Compliance

Business continuity

Building a full life-cycle management system Deepening risk scenario planning and Promoting capability certification and

dynamic contingency plans standards empowerment

We have established a business continuity management framework In accordance with policies such as the Management Measures for The Company has formally obtained the Business Continuity Management

covering the closed loop of "prevention-response-recovery-learning" Emergency Drills for System Acquiring Business we regularly conduct System certification and by holding specialised training sessions on ISO

driven by coordinated planning across operation IT supply chain and Business Impact Analysis (BIA) across the entire business chain to 22301 and other standards systematically enhances the organisation's

human resources departments to conduct risk assessments across the accurately define critical business functions Recovery Time Objective depth of understanding of international standards and implementation

entire business chain systematically identify potential threats such as (PTO) Recovery Point Objective (PRO) and associated resource capabilities providing sustained momentum for addressing global

natural disasters cybersecurity and supply chain disruptions and dependencies. Based on the assessment results we dynamically compliance challenges and strengthening business resilience.formulate graded response strategies to ensure that risk prevention and formulate and iteratively update emergency response plans strengthening

control are advanced and systematic. their scenario adaptability and practical response capability.Conducting practical training on multiple ISO management systems Full-chain emergency drill for the acquiring system

To systematically enhance our ability to address In November 2025 the Company successfully organised a

international audit and compliance challenges the full-chain emergency switch-over drill for the primary and

Company specially invited senior experts from the China backup computer rooms of the acquiring system. This drill

Association for Quality Quality Assurance Centre in August simulated a scenario in which the primary computer room

2025 and successfully held the Practical Training on became unavailable due to a major fault and in strict

Multiple ISO Management Systems. This training focused accordance with the contingency plan switched core

on three major international standards: ISO 22301 business operations to the backup computer room. It

(Business Continuity) ISO 27001 (Information Security) effectively verified the feasibility of the disaster recovery

and ISO 20000 (IT Service Management). Senior plan the redundancy of the technical systems and the

management and key personnel from core departments efficiency of the team's emergency response thereby

participated through a combination of on-site engagement providing solid assurance for the continuity of core

and online live streaming undertaking in-depth study of business operations.standard implementation risk control and process

coordination.

692025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Scope of the Report Data Explanation

The reporting period of this Report is from 1 January 2025 to 31 December 2025. Where certain The textual information and quantitative data contained in this Report are sourced from the Company's

textual information falls outside this period it is indicated in the relevant sections. Newland Digital internal records with certain financial figures drawn from the Company's 2025 Annual Financial

Technology Co. Ltd. and its subsidiaries (hereinafter referred to as "Newland" "the Company" or Statement. Unless otherwise specified the amounts in this Report are denominated in Renminbi

"we") are consistent with the scope of the consolidated financial statements of Newland (000997.SZ). (RMB). All content and data disclosed in this Report have been reviewed and approved by the Board

of Directors.Principles of Preparation Basis for Preparation

Materiality: In accordance with administrative regulations and relevant standards this Report focuses This Report has been prepared in accordance with the Self-Regulatory Guidelines No.3 for Listed

on and discloses ESG topics that have a significant impact on the Company's sustainability and Companies – Preparation of Sustainability Report Self-Regulatory Guidelines No.17 for Companies

stakeholders effectively conveying the Company's key actions and performance in sustainability. Listed on Shenzhen Stock Exchange – Sustainable Development Report (Trial) and the Corporate

Quantitative: ESG performance is translated into specific measurable data and indicators wherever Sustainability Disclosure Standards – Basic Principles (Trial) jointly issued by the National

possible to provide a solid evidence base for internal management improvements and external Development and Reform Commission Ministry of Industry and Information Technology Ministry of

communication thereby enhancing the objectivity and credibility of this Report. Finance Ministry of Housing and Urban-Rural Development Ministry of Transport Ministry of

Balance: This Report takes into account the concerns of all stakeholders and comprehensively and Railways Ministry of Water Resources National Radio and Television Administration and Civil

objectively discloses the Company's practices and achievements in environmental social and Aviation Administration of China while drawing key references from the United Nations Sustainable

governance areas to ensure fairness and transparency. Development Goals (SDGs) the Global Sustainability Standards Board (GSSB) the Global Reporting

Consistency: Data collection indicator definitions calculation methods and disclosure scope are Initiative (GRI) Standards and the European Sustainability Reporting Standards (ESRS).maintained consistently and coherently and follow industry-recognised standards and frameworks

to ensure comparability and reference value over time.

702025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Key ESG Performance Indicator Table

Economic Governance

Performance indicators Unit 2023 2024 2025 Key performance indicators Unit 2023 2024 2025

Total assets RMB 100 million 132.00 127.04 146.00 Number of meetings of the Board of Directors held / 9 8 10

Total revenue RMB 100 million 82.50 77.45 87.58 Number of meetings of the Board of Supervisors held / 3 6 3

Net profit attributable to parent company RMB 100 million 10.04 10.10 10.10

Number of general meetings of shareholders held / 2 2 2

Net cash flow from operating activities RMB 100 million 22.27 8.63 4.93

Number of meetings of the Board of Directors'

Strategic Committee held / 1 1 1

Total cash dividends (including share repurchases) RMB 100 million 5.07 5.56 6.30

Basic earnings per share RMB/share 0.9906 0.9965 1.0054 Number of meetings of the Board of Directors'

Nomination Committee held / 1 1 1

Taxes paid RMB 100 million 2.48 3.30 3.53

Number of meetings of the Board of Directors'

Remuneration and Appraisal Committee held / 1 1 1

Innovation Number of meetings of the Board of Directors'

Audit Committee held / 3 4 4

Key performance indicators Unit 2023 2024 2025

Number of directors Person 5 5 5

R&D investment RMB 100 million 6.32 6.64 6.51

Person

R&D investment as a percentage of total revenue % 7.66 8.58 7.43 Number of independent directors 2 2 2

Number of R&D personnel Person 3765 3804 3594 Number of female Board members Person 1 1 1

Number of R&D personnel with a master's degree Person 207 230 227

Number of results briefings held / 2 1 1

Number of invention patents granted / 54 19 10

Number of investor visits held / 5 2 30

Number of Patent Applications / 66 19 93

Number of valid invention patents / 284 19 238 Disclosure announcements and supporting materials / 78 99 106

712025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Key ESG Performance Indicator Table

Social

Performance indicators Unit 2023 2024 2025 Performance indicators Unit 2023 2024 2025

5

Occupational health and safety Scope 3 tCO2e - 11284.14 268535.20

6

Safety education coverage % 100 100 100 Emissions intensity tCO2e/RMB million - 2.00 31.15

Number of occupational disease 0 0 0 Energy

cases /

Training and education Purchased electricity kWh 8493190 9248901 8389853

Data centre electricity

Total training investment RMB 100 million - 194.56 208.78 kWh 631852 676837 761294consumption

Total number of employees trained Person 13668 20900 22818 Water resources

Total domestic wastewater

Total training duration Hour 61252.50 109723.62 135401.00 discharge Tonne 31805 30875 28320

Number of users of the Company's

online learning platform Person 99964 22455 22296 Office water consumption Tonne 47707 46313 51129

Average training duration per employee Hour/person 5.98 19.37 10.37 Waste management

Total hazardous waste

Supply chain management generated Tonne 0 0 0

New suppliers included based on Total non-hazardous waste

environmental criteria % 100 100 100 generated Tonne 28 23 29

New suppliers included based on % 100 100 100 Company vehicle scheduling / 2024 2306 2980social criteria

Supplier training Session - 12 66 Notes:

1. Basis of accounting: Since 2024 the Company has conducted GHG emissions accounting in accordance with ISO 14064-1:2018. Emissions

Employment under Scope 1 Scope 2 and Scope 3 have all been verified by an independent third-party institution.

2. Organisational boundary: In accordance with the operational control approach the Company defined the organisational boundary of this GHG

Global workforce Person 6561 6703 6226 inventory to include all production areas office areas and employee dormitories of the Company headquarters and seven major subsidiaries.

3. Reporting boundary: In accordance with the requirements of the standard the Company classified GHG emissions related to its operations into

Percentage of female executives % 20 20 20 the following six categories for identification and assessment: Category 1 (direct emissions) Category 2 (indirect emissions from purchased

Percentage of employees with a energy) Category 3 (indirect emissions from transportation) Category 4 (indirect emissions from products and services used by the organisation)

bachelor's degree or higher % 77.79 79.90 81.72 Category 5 (indirect emissions from the use of the organisation's products) and Category 6 (other indirect emissions not included in the above

categories).Environmental 4. Definition of GHG: GHG refers to natural and anthropogenic gaseous constituents of the atmosphere that absorb and emit radiation at specific wavelengths within the spectrum of infrared radiation emitted by the Earth's surface the atmosphere and clouds. The GHG inventoried by the

Company includes carbon dioxide (CO?) methane (CH?) nitrous oxide (N?O) nitrogen trifluoride (NF?) hydrofluorocarbons (HFCs) perfluorocarbons

Performance indicators Unit 2023 2024 2025 (PFCs) and sulphur hexafluoride (SF?).

5. Explanation of the expansion of accounting boundaries: In 2025 the Company systematically expanded the accounting boundary for Scope 3

GHG emissions1 -4 (other indirect GHG emissions). In 2024 the emissions sources covered by the accounting included purchased goods and services business

Tonnes of CO2 travel employee commuting fuel- and energy-related activities waste treatment and upstream and downstream leased assets. On this basis

Total emissions equivalent (tCO2e) - 15485.28 272834.23 in 2025 three additional categories i.e. upstream and downstream transportation and distribution use of sold products and end-of-life

treatment of sold products were added. Among them the newly added Category 4 (emissions from purchased goods or services) and Category 5

Scope 1 tCO2e - 775.30 294.12 (indirect emissions related to product use) accounted for relatively high proportions which was the main reason for the significant increase in

the verification results compared with the previous year.Scope 2 tCO2e - 3425.84 4004.91 6. Emission intensity: Calculated by dividing total GHG emissions by revenue for the year (measured in million RMB).

722025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

GRI Index

GRI Standards Disclosure Item Corresponding Section in Corresponding Page Disclosure Item

Corresponding Section in Corresponding Page

This Report in This Report GRI Standards This Report in This Report

Climate Change Response and

GRI 2: General Disclosures Carbon Neutrality 19Resource Recycling and Pollution

Control 23

The organisation and its reporting practices Employee Empowerment and Care 36

2-23 Policy commitments Data Security and Customer Privacy 52

2-1 Organisation details About Newland 02 Protection

Sustainable Supply Chain 56

2-2 Entities included in the organisation's 70 Risk Management and Internal Control sustainability reporting About This Report Compliance 66

Reporting period frequency and contact

2-3 70 2-27 Compliance with laws and regulations About This Report 70point About This Report

2-4 Key ESG Performance 71 Stakeholder engagementRestatements of information Indicator Table

Stakeholder Communication and

Activities and workers 2-29 Approach to stakeholder engagement Cooperation 63

Stakeholder Communication and

Cooperation 63 GRI 3: Material Topics

2-6 Activities value chain and other business relationships

Sustainable Supply Chain 56 3-1 Approach to stakeholder engagement Materiality Assessment and Management 10!"#$%&'%"(($)(*+)'

!

Employee Empowerment and Care 36 3-2 List of material topics Materiality Assessment and Management 10

2-7 Employees

Key Social Performance

Indicator Table 72 GRI 201: Economic Performance

Governance 201-1 Direct economic value generated and distributed Key Economic Performance Indicator Table 71

2-9 Governance structure and composition Corporate Governance 61 Financial implications and other risks and Management of Sustainability-

201-2 opportunities due to climate change Related Risks and Opportunities 09

2-10 Nomination and selection of the highest governance body Corporate Governance 61

201-3 Defined benefit plan obligations and other retirement plans Employee Empowerment and Care 36

Role of the highest governance body in

2-14 sustainability reporting Chairperson's Message 01 GRI 203: Indirect Economic Impacts

Strategy policies and practices 203-1 Infrastructure investments and Rural Revitalisation and services supported Social Contribution 32

Chairperson's Message 01 GRI 205: Anti-corruption

2-22 Statement on sustainability strategy

ESG Strategy and Risk

Management 08 205-2

Communication and training about Party Building Leadership and

anti-corruption policies and procedures Organisational Development 62

732025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

GRI Index

Corresponding Section in Corresponding Page Disclosure Item Corresponding Section in Corresponding Page GRI Standards Disclosure Item This Report in This Report GRI Standards This Report in This Report

GRI 302: Energy GRI 401: Employment

302-1 Key Environmental Performance 72 Benefits provided to full-time employees that are Energy consumption within the organisation Indicator Table 401-2 not provided to temporary or part-time employees Employee Empowerment and Care 36

GRI 303: Water and Effluents GRI 403: Occupational Health and Safety

Interactions with water as a shared resource

303-1 Resource Recycling and Pollution 23 403-1 Occupational health and safety management system Employee Empowerment and Care

36

Control

403-3 Occupational health services Employee Empowerment and Care 36

Key Environmental Performance

Indicator Table 72 403-5 Worker training on occupational health and safety Employee Empowerment and Care 36

303-5 Water consumption

Resource Recycling and Pollution

Control 23 Employee Empowerment and Care 36

403-6 Promotion of worker health

GRI 304: Biodiversity Key Social Performance Indicator Table 72

403-8 Workers covered by an occupational health and

Significant impacts of activities products and afety management system

Employee Empowerment and Care 36

304-2 Key Environmental Performance services on biodiversity Indicator Table 29 403-10 Work-related ill health Key Social Performance Indicator Table 72

GRI 305: Emissions GRI 404: Training and Education

305-1 Key Environmental Performance 72 Employee Empowerment and Care 36Direct (Scope 1) GHG emissions Indicator Table 404-1 Average hours of training per year per employee

Key Social Performance Indicator Table 72

305-2 Key Environmental Performance Energy indirect (Scope 2) GHG emissions Indicator Table 72

404-2 Programs for upgrading employee skills and Employee Empowerment and Care 36

305-3 Key Environmental Performance

transition assistance programs

Other indirect (Scope 3) GHG emissions Indicator Table 72

Key Environmental Performance GRI 405: Diversity and Equal Opportunity305-4 GHG emissions intensity Indicator Table 72

Corporate Governance 61

GRI 306: Waste 405-1 Diversity of governance bodies and employees Employee Empowerment and Care 36

306-2 Resource Recycling and Pollution Management of significant waste-related impacts Control 23 GRI 414: Supplier Social Assessment

412-1 New suppliers that were screened using 306-5 Resource Recycling and Pollution 23 social criteria Sustainable Supply Chain 56Waste directed to disposal Control

GRI 308: Supplier Environmental Assessment GRI 416: Customer Health and Safety

Assessment of the health and safety impacts of

308-1 New suppliers included based on environmental criteria Sustainable Supply Chain 56 416-1 product and service categories Quality Management and Product Safety 46

742025 ESG Innovation Environmental Social Governance

Environmental Social and Governance Report Introduction Governance Performance Performance Performance Performance Appendices

Index for Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange – Sustainable Development Report (Trial)

Corresponding Page

SZSE Topics Clause Corresponding Section in This Report SZSE Topics Clause Corresponding Section in This Report Corresponding Page in This Report in This Report

Article 11 Materiality Assessment and Management 10 Social

ESG Management Framework 07

Article 12

Management of Sustainability-Related Risks Rural revitalisation Article 39 Rural Revitalisation and Social Contribution 32

and Opportunities 09

General disclosure Management of Sustainability-Related Risks

09 Social contributions Article 40 Rural Revitalisation and Social Contribution 32and Opportunities

Article 15 Innovation Investment and Technological

Materiality Assessment and Management 10 Achievements 14

Innovation Article 42

Article 18 Materiality Assessment and Management 10 Supporting the Digital Transformation of the 17Real Economy

Environmental Ethics of Science and Technology Article 43 Ethics of Science and Technology 15

Articles 21-28 Climate Change Response and Carbon Neutrality 19 Supply chain security Article 45 Sustainable Supply Chain 56

Climate response

Key Environmental Performance Indicator Table 72

Equal treatment of SMEs Article 46 Equal Treatment to SMEs 58

Pollutant Discharge and Waste Management 26 Product and service safety and

Pollutant discharge Article 30 quality Article 47 Quality Management and Product Safety 46

Key Environmental Performance Indicator Table 72 Data security and customer

privacy Article 48 Data Security and Customer Privacy Protection 52

Pollutant Discharge and Waste Management 26

Waste disposal Article 31 Employee Empowerment and Care 36

Key Environmental Performance Indicator Table 72 Employees Article 50

Key Social Performance Indicator Table 72

Ecosystem and biodiversity

protection Article 32 Land Use and Ecological Conservation 29 Sustainability-related governance

Environmental compliance

management Article 33 Environmental Management Policies 29

Stakeholder engagement Article 53 Stakeholder Communication and Cooperation 63

Climate Change Response and Carbon Neutrality 19

Energy utilisation Article 35

Key Environmental Performance Indicator Table 72 Anti-commercial bribery and 65

anti-corruption Article 55 Business Ethics and Compliance

Water resources utilisation Article 36 Water Resources Management 28

Circular economy Article 37 Circular Economy 23 Fair competition Article 56 Business Ethics and Compliance 65

752025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Appendix: GHG Verification Statement

762025 Introduction ESG Innovation Environmental Social GovernanceEnvironmental Social and Governance Report Governance Performance Performance Performance Performance Appendices

Report Release and Contact Information

As an independent environmental social and governance report this Report is

provided in both Chinese and English versions for readers' reference. To view or

download this Report online please visit the official website of Newland Digital

Technology Co. Ltd.: https://dt.newland.com.cn/

We value the voices of all stakeholders and sincerely invite you to share your

feedback via the provided channels or by scanning the QR code. Your suggestions will

directly help us improve this Report and enhance our ESG performance. Securities

Investment Centre Newland Digital Technology Co. Ltd.Address: Newland Technology Park No. 1 West Rujang Road Mawei District

Fuzhou City Fujian Province China

Tel.: +86 0591-83979997

Email: newlandzq@newland.com.cn

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