Co-Innovating A Smarter Future
Topband ESG Report 2025
Stock codeTopband ESG Report 2025 01
About the Report
This is the 6th Social Responsibility Report and the 5th ESG Report issued by Shenzhen Topband Co. Ltd. since its
listing which discloses Topband's activities and performance in the main areas of sustainable development including
environment society and governance. The Report was deliberated and approved at the 25th Meeting of the 8th Board of
Directors of Topband held on March 31 2026 and was released together with Topband's Annual Report 2025.Time range
From January 1 2025 to December 31 2025. Some parts of the Report involve the information of previous years to
ensure its integrity.Data and content
The data and cases that are used in the Report are all from official documents statistical reports and other documents
provided by relevant departments of the Company. The Report does not contain any false information or misleading
statements and Shenzhen Topband Co. Ltd. is responsible for the truthfulness accuracy and completeness of the content
herein.Unless otherwise specified the monetary amounts involved herein are expressed in RMB.Basis of preparation
The Report is prepared based on the actual situation of the Company in accordance with the relevant requirements of the
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial
Implementation) and the Global Reporting Initiative (GRI) Standards and based on the Company's actual situation. The
disclosures of indicators in the Report are detailed in "Index".Language of the Report
The Report is prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings
between the two versions the Chinese version shall prevail.And the report electronic version is available on our official
website: https://www.topband.com
Contact information
Department: Securities Department of Topband
Contact address: Topband Industrial Park No. 1 Yongteng Third Road Tangtou Community Shiyan Sub-district
Bao'an District Shenzhen
Tel: 0755-26957035
Fax: 0755-26957440
Email: wenzh@topband.com.cn02
About the Report ***01
Chairman's Statement ***04
ABOUT TOPBAND 07
ABOUT TOPBAND ···10
Core technology ···11
Global Layout ···12
Key Operation Results ···13
Market Honors ···14
ESGMANAGEMENT 15
ESG Governance ···16
Dual Importance Assessment ···17
Stakeholder Communication ···20Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 03
Practicing Green Development and Innovation-oriented Development
Promoting Ecological Harmony and Value Co-creation by Employees
Environmental Compliance Innovative Quality Services ···43
Management ···22 Collaborative Supply Chain ···56
Combat with Climate Change ···27 Ecology ···59
Utilizing Resources Efficiently ···31 Employee Rights Protection ···71
Joint Ecological Protection ···34 Care for Health and Safety ···78
Promoting the Circular Economy ···40 Serving Community Development
Being Compliant to Ensure Steady Key Performance
Development Indicators ***102
Establishing a Sound Governance Index ***111
Structure ···81
Standardized and Compliant
Operations ···90
Adherence to Business Ethics ···94
Data Security Protection ···9704
Chairman's Statement
Dear shareholders partners and all friends caring about Topband
Thanks sincerely for your attention to and trust in Topband. Currently global energy revolution and technological
iteration are speeding up and the intelligent control and new energy industries are entering a critical development stage with
challenges and opportunities intertwined. Climate change resource constraints and market fluctuations pose ongoing
challenges and energy storage expansion and intelligent upgrading spurred by green and low-carbon transformation are
becoming important directions of industry development.In face of this situation Topband has always adhered to the philosophy of "making the world more 'intelligent' and 'low-
carbon'" and long-termism and demonstrated strong business resilience and quality-oriented strategic composure in a
complex environment.In 2025 the market competitiveness of the Company's core business kept improving with revenue of RMB
11.082 billion a year-on-year increase of 5.53% and achieving steady growth in business scale. In addition based on
prudent and steady long-term development considerations the Company actively optimized its asset structure consolidated
its operating quality and achieved a non-recurring net profit of RMB 373 million a year-on-year decrease of 41.93%. We are
well aware that short-term adjustments are designed to accumulate longer-term momentum for leapfrog development. On the
basis of building a solid financial foundation we further delve into sustainable development:
I. Practicing low-carbon development II. Sharing social value
Topband keeps improving its environmental Topband adheres to technological innovation as its
management system and promoting green operations core participates deeply in the formulation of industry
through systematic control. We are deepening the coverage standards promotes industry-university-research
of ISO 14001 system certification and integrating efficient collaboration and university-enterprise cooperation and
resource utilization waste reduction and the standardized keeps expanding application scenarios of intelligent control
disposal of hazardous waste into all aspects of production technology. By transforming technological innovation
and operations. In the meantime we actively explore achievements into high-quality products and professional
circular economy models and promote recyclable services we repay market trust with excellent quality and
innovation practices in raw material use and packaging co-create and share value with our partners employees and
contributing to the sustainable development of the all sectors of society. On the supply chain level we focus
industry. on building a stable reliable and sustainable supplier
Topband is committed to providing innovative low- management system strengthening supplier lifecycle
carbon solutions for various industries based on intelligent management and empowering long-term development
control technology. We focus on the practical through mutual trust and win-win industrial cooperation.implementation of the "two increases and two decreases" Adhering to the principle of "people orientation" we
climate action strategy and continue to expand keep improving the employee rights protection system and
implementation paths of energy conservation and carbon building a diverse and inclusive workplace environment.reduction. In 2025 we officially launched our Meanwhile we actively engage in community public
independently developed "Zero-carbon Cloud" platform welfare and pay back to society through practical actions.provided a one-stop cloud photovoltaic storage and
charging solution and promoted full-chain work of green
and low-carbon development solidly.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 05
III. Consolidating the cornerstone of governance
Topband always adheres to high standards of corporate governance keeps optimizing the structure and decision-making
mechanism of the Board of Directors and provides solid support for steady business development with a scientific and
standardized governance system. Based on this governance foundation the Company internalizes compliance management as
its corporate foundation strictly adheres to the bottom line of business ethics and integrates integrity and transparency into
all decisions and operations protecting the legitimate rights and interests of the Company and all stakeholders effectively.We firmly believe that excellent governance ultimately manifests as sincere return for our shareholders. In 2025 we
deepened investor relations management and released the action plan for "double improvement of quality and return" to share
development achievements with our shareholders through a sustained and stable dividend distribution mechanism. In the
meantime we strengthened data security and network protection capabilities and built a solid risk control system to
strengthen the defense line of operational safety and ensure that the Company maintained stable operation in a complex and
changing environment.In 2026 we will continue to deepen green operations solidly promote energy conservation carbon reduction and
circular economy practices delve into intelligent control and low-carbon technology create and share value together with
partners consolidate the governance foundation and ensure long-term development based on stability and compliance.We look forward to working with you to create an intelligent low-carbon and beautiful future!
Chairman of Shenzhen Topband Co. Ltd.April 2 202606
Interpretations
Terms Refer to Contents
Company the Company Topband Refer to Shenzhen Topband Co. Ltd.RMB RMB ten thousand Refer to RMB RMB ten thousand
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1 2025 to December 31 2025
Articles of Association Refer to Articles of Association of Shenzhen Topband Co. Ltd.Shiyan Branch Refer to Shiyan Branch of Shenzhen Topband Co. Ltd.Huizhou Topband Refer to Huizhou Topband Electrical Technology Co. Ltd.Ningbo Topband Refer to Ningbo Topband Intelligent Control Co. Ltd.Nantong Topband Refer to Nantong Topband Lithium Battery Co. Ltd.Topband Romania/Topband
Refer to Topband Smart Europe Company Limited
European Plant
Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co. Ltd.Topband India Refer to Topband India Private Limited
AI Refer to Artificial Intelligence
BLDC Motor Refer to Brushless DC Motor
BG BU Refer to Business Group Business Unit
IPD Refer to Integrated Product DevelopmentPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 07
ABOUT TOPBAND08
Shenzhen Topband Co. Ltd. (hereinafter referred to as "the Company" or "Topband") is a leader in the global
intelligent control industry. Based on the core technology system of the "four electrics and one network" (electric control
motor battery power and IoT platform) and long-term technical experience and product solutions the Company specializes
in the R&D production and marketing of intelligent control and autonomous intelligence products. The Company's intelligent
control products mainly include intelligent controllers high-efficiency motors battery packs and power sources while
autonomous intelligence products mainly include cloud storage and cloud charging. The Company's products are applied
widely to the tool and home appliance automotive and high-end equipment and new energy industries not only providing
innovative efficient and reliable customized services to worldwide customers but also bringing green intelligent and
innovative products to consumers.Established in 1996 and listed on the Shenzhen Stock
Exchange in 2007 Topband is a state-recognized enterprise
technology center a national high-tech enterprise a pilot
demonstration enterprise in Shenzhen an AEO a winner of
the Shenzhen Industrial Award and a winner of the China
Manufacturing Champion for its smart home control module.In 2025 the Company won the second prize of the Science
and Technology Progress Award of Guangdong Province.Since listing the Company's financial performance has been
stable. In 2025 the Company's sales revenue exceeded RMB
11 billion remaining over RMB 10 billion for two
consecutive years and there were 13208 employees in total.Second Prize of the Science and Technology Progress
Award of Guangdong Province
RMB 42 million
Cloud storage and
cloud charging
0.38%
New energy
11.54%
Tools and home
RMB 1.279 appliances
Automotive and high-end billion
equipment 76.43%
RMB 1.29
11.64% billion
RMB 11.082 billion
Revenue
RMB 8.471
billionPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 09
Partners
Remarks: The above are some of the Company's clients and the rest have not been disclosed due to business secrecy.10
Core technology: "Four electrics and one network + AI" technology platform
Electronic control technology
Integrating sensing power electronics signal processing communication human-computer interaction and other
technologies to achieve the intelligent control of terminal products with microprocessors being the core. The Company has
established hundreds of electric control technology platforms which are applied widely to products such as controllers
mechatronics power sources and intelligent batteries.Motor technology
The Company pursues continuous iteration with focus on the four major indicators of high efficiency low noise high
precision and high reliability and has established product platforms such as brushless DC (BLDC) motors hollow cup
motors (including brushed hollow cup motors and brushless slot-less motors) switched reluctance motors servo motors and
stepper motors as well as full-process capabilities from design simulation and testing verification to large-scale intelligent
manufacturing.Battery technology
The Company has formed complete design development and production capabilities from cell technology and battery
management systems (BMS) to battery packs. BMS achieve the real-time monitoring and management of battery status
through advanced algorithms and are applied widely to energy storage power backup battery swapping portable devices
and other scenarios.Power source technology
Covering analog power supply switching power supply digital power supply and server power supply technologies
and products such as power conversion systems (PCS) photovoltaic inverters high-power DC charging piles and efficient
server power sources for AI datacenters and meeting multi-scenario power conversion demand from new energy to
computing infrastructure.IoT platform
Covering complete technological capabilities from modules and intelligent terminals to apps and PaaS keeping evolving
toward AIoT and endowing products with perception learning and autonomous decision-making capabilities. The Company
has built a home energy management cloud platform and a digital energy management cloud platform supporting intelligent
collaboration and data operations for energy storage charging photovoltaic and other devices.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 11
AI technology
The Company regards AI as the capability base that runs through the "four electrics and one network" and focuses on
three directions: The first is product intelligence where AI algorithms are embedded into controllers BMS EMS and other
products to achieve adaptive control predictive maintenance and intelligent energy scheduling making products more
intelligent as they are used; the second is manufacturing intelligence where AI quality inspection process parameter
optimization and intelligent scheduling are deployed in the production process to improve manufacturing efficiency and
quality consistency; the third is R&D intelligence where AI is used to assist in simulation design testing and verification
and knowledge management to accelerate product development and iteration.Business Structure
Intelligent control products Autonomous intelligence products
Tools and home Automotive and high-
appliances end equipment New energy Cloud storage
Cloud
charging
Technology- Technology-
driven driven
"Four electrics and one network" + AI
Electronic Motor Battery Power source IoT platform AI technology
control technology technology technology
technology12
Global Layout
In response to the global trend of industry chain restructuring and deep integration into customers' global strategies
Topband adheres to the concept of "localized services precise operations and collaborative empowerment" and promotes
overseas production capacity deployment and capacity building systematically. In 2025 the Company implemented a series
of strategic measures simultaneously in the four overseas bases with focus on the four dimensions delivery assurance supply
chain resilience and localization operational efficiency and cost optimization and compliance risk control.Strategic dimension Specific measures
Each base developed local supplier resources and promoted the local
Deepening localized operations and
procurement of key materials actively to shorten supply chains respond to
supply chain resilience building
customers' origin requirements and reduce geopolitical and logistics risks
Fully implement lean production and digital management; optimize the
Building an agile and responsive production scheduling mechanism introduce automated equipment and
operational system information systems (MES/WMS) and implement process innovation to meet
complex market needs for small batches multiple varieties and fast delivery.· Establish an "iron triangle" project system centered on customer delivery and a
Strengthening cross-departmental routine collaboration mechanism;
collaboration and talent localization · Vigorously develop local management and technical backbone personnel to
ensure stable operations and knowledge transfer.· Proactively respond to international trade rules and deeply interpret and
implement compliance requirements such as USMCA (Mexico) and AEO
Building a solid foundation for certification (India);
compliance and risk control · Establish a customs logistics optimization mechanism and a supply chain
emergency plan to control tariffs logistics and origin risks systematically and
ensure supply chain security.Timisoara Romania
Chongqing Nantong
Hangzhou
Ningbo
Huizhou Monterrey Mexico
Pune India Shenzhen
Dong Nai Vietnam
Shenzhen Headquarters
Production Base/R&D Center
Huizhou No. 1 Industrial Park Huizhou No. 2 Industrial Park (under construction) Ningbo Nantong Chongqing
Shenzhen YAKO Huizhou YAKO Hangzhou YAKO Timisoara in Romania Dong Nai in Vietnam Pune in
India and Monterrey in Mexico
Subsidiaries/Offices
Overseas output value Proportion of Shanghai Taizhou Suzhou Nanjing Hong Kong Guiyang Wuhan Changsha Foshan Dongguan Chengdu
RMB 2.814 billion overseas output value Wenzhou Jinan U.S. Germany Japan UK Sweden Singapore Thailand New Zealand Poland Indonesia
24.32% Austria and TurkeyPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 13
Key Operation Results
Revenue Net cash flow from
RMB 11.082 billion operating activities
RMB 678 million
Gross profit rate Net profit attributable to Net profit excluding EPS (basic)
21.54% parent company nonrecurring profit and RMB 0.3
RMB 364 million loss
RMB 373 million
R&D investment Proportion of R&D input R&D personnel Total tax payment
RMB 1.047 billion 9.45% 2138 (including at home and
abroad)
RMB 254 million
Net assets Total assets Estimated dividend Dividend per share
RMB 7 billion RMB 13.6 billion amount RMB 0.07
RMB 86.02 million
Intelligent controllers High-efficiency motors Battery packs
This core business of the Company had This second largest category of the This third largest category of the
a shipment volume of 181 million sets in Company includes external rotor DC Company covers power tools E-Bike
2025 a year-on-year increase of 1.69% and brushless motors LiDAR motors and hollow vehicle and vessel onboard industrial and
a cumulative shipment volume of 1.81 billion cup motors with a shipment volume of 4.52 commercial energy storage home energy
sets. The Company maintains deep million sets in 2025 a year-on-year increase storage communication backup power and
cooperation with worldwide top brand of 28%. Among them the cumulative other scenarios with a shipment volume of
customers such as TTI Electrolux and shipment volume of LiDAR rotating mirror 1.09GWh in 2025 a year-on-year increase
Johnson Controls and its production capacity motors exceeded 1 million units with a of 15.38%.is mainly from the four major manufacturing market share of over 30%; the annual
bases in the Pearl and Yangtze River Deltas production capacity of hollow cup motors
in China. Synchronous overseas delivery is with outer diameters of Φ6~Φ40mm was over
achieved in Vietnam Mexico India and 1 million units which have been applied to
Romania. intelligent cockpits of vehicles and dexterous
hand actuators of humanoid robots.14
Market Honors
Market recognition ▼
Date of
Subject Award name Granting organization
acquisition
Second Prize of Science and Technology Progress Guangdong Provincial People's
2025/9 Topband
Award of Guangdong Province Government
2025/12 Topband Specialized Refined Distinctive and Innovative SME Shenzhen Municipal SME Service Bureau
Bao'an District Shenzhen – Top 100 Industrial Shenzhen Bao'an District Federation of
2025/12 Topband
Enterprises Top 100 Enterprises in Five Categories
2025/3 Topband Top 100 New Energy Storage Brands of China Electrical Energy Storage Alliance
EIRP-30 (Embodied Intelligence Robot Pioneer
2025/12 Topband Yanzhi Robot
TOP30)
2025/8 Topband First Prize in the China Stir-frying Robot Competition China National Food Industry Association
2025/12 Topband Star Employer of the Year OfferShow
2025/12 Topband Motor Core Robotics Technology Innovation Award Shenzhen Robotics Association
2025/10 Topband Motor Pioneer Enterprise in Innovative Motor Design Big-Bit.com
11th Red Sail Award – Top 100 Manufacturing Shenzhen Electronic Equipment Industry
2025/2 Shenzhen YAKO
Enterprises of the Year Association
Most Influential Enterprise Brand in the Field of Motion Control Industry Alliance and
2025/12 Shenzhen YAKO
Motion Control in 2025 China Direct Drive Industrial Alliance
Quality recognition ▼
Date of
Subject Award name Granting organization
acquisition
2025/10 Topband 2025 Strategic Partner of the Year Carrier China
2025/6 Topband Strategic Cooperation Supplier Award K?rcher Group Germany
2025/10 Topband Silver Execution Award Johnson Controls
2025/10 Topband 2025 Sustainable Supplier Award WIK Group
2025/11 Topband Technological Leap Breakthrough Award Hisense Group
2025/12 Topband 2025 Innovation Award Bosch Home Comfort Group
2025/5 Huizhou Topband Best Quality Award Healthlead Corporation Limited
2025/11 Huizhou Topband Quality Pioneer Award Shenzhen Hailei New Energy Co. Ltd.
Sustainable development-related recognition ▼
Date of
Subject Award name Granting organization
acquisition
2025/9 Topband A+ ESG rating CCXGF
CDP: B in climate change; B in water resources
2025/12 Topband CDP
security
Capital market recognition ▼
Date of
Subject Award name Granting organization
acquisition
16th "Investor Relations Management Tianma
2025/6 Topband Securities Times
Award" for Listed Companies
19th Top 50 Chinese Listed Companies in New Quality
2025/12 Topband Securities Times
Productive Forces
2025 Top 20 Listed Companies in Corporate Shenzhen Research Association of
2025/11 Topband
Governance in the Greater Bay Area Corporate Governance
2025 Top 20 Listed Companies in Information Shenzhen Research Association of
2025/11 Topband
Disclosure in the Greater Bay Area Corporate GovernancePracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 15
ESG MANAGEMENT16
ESG Governance
Topband has deeply integrated the concept of sustainable development into its strategies and routine operations built a
management system with ESG as the core and continuously improved governance efficiency through strategy guiding
system improvement organizational optimization and multi-party collaboration laying a solid foundation for long-term value
creation. Under the five strategic frameworks of "scale growth customer intimacy being innovation-driven agile operations
and organizational evolution" the Company integrates ESG goals into its overall development plan. By establishing a
dynamically optimized ESG management indicator system the Company keeps promoting environmental friendliness social
win-win governance optimization and business growth together and is committed to building a long-term mechanism for
high-quality development.In order to meet the demand of the Company's strategic development and strengthen the Board of Directors' role in
coordinating and supervising ESG issues the Company renamed the original "Strategy Committee of the Board of Directors"
as the "Strategy and ESG Committee of the Board of Directors" and also deliberated and revised the Rules of Procedure for
the Strategy and ESG Committee of the Board of Directors in March 2025. As the decision-making and supervisory body for
the Company's ESG issues the committee is composed of 5 directors (including one external independent director). In terms
of committee composition the Company fully considers diverse skills of directors to ensure that the members have high
professional competence in fields such as strategic planning implementation business insights ESG risk and opportunity
identification industry policy analysis and compliance control thereby providing reliable organizational and professional
support for the Company's sustainable development.Governance level Specific responsibilities
As the highest decision-making body for ESG governance coordinate the review and
Board of Directors supervision of major ESG issues comprehensively evaluate policy risks and opportunities
regularly and guide business departments to formulate response strategies.· Study major issues such as the Company's ESG goals and philosophy strategic planning
governance structure and management systems and give decision-making suggestions.· Supervise the execution and implementation of the Company's ESG goals and give
Strategy and ESG
suggestions on actions required to achieve the goals.Committee
· Identify and evaluate risks related to the Company's ESG field and raise questions and
response strategies for major issues that affect the Company's performance of ESG-related
tasks.In order to improve the transparency and normativity of corporate governance information disclosure and ESG
management the Company has continuously released the Social Responsibility Report since 2020 by deeply benchmarking
international mainstream standards and domestic regulatory requirements and officially upgraded and renamed it as the ESG
Report in 2024 by following capital market requirements closely. The ESG Report of the Company strictly follows the
compliance procedure of being prepared along with the Annual Report and disclosed to the public after review and approval
by the Board of Directors. The progress of responsibility performance is updated dynamically through the official website
WeChat official account and other platforms to present the Company's practices and achievements in low-carbon
transformation employee development governance optimization business ethics and other fields systematically. In addition
the Company actively participates in mainstream ESG ratings and regularly responds to CDP climate change questionnaires
to deepen communication and mutual trust with worldwide stakeholders. In 2025 the Company's CDP climate change rating
rose from B- to B successfully marking a new level of climate actions and low-carbon operations for the Company.In addition the Company has established an ESG risk identification and response mechanism which accurately
identifies risks through dual importance analysis supply chain risk pre-identification and compliance benchmarking.Through the continuously improving governance structure and internal control system the Company implements response
measures in the entire business process of R&D procurement production operation etc. to strengthen the defense line for
ESG risk prevention and control. In the meantime the Company improves the ESG awareness of all employees through
special training and cross-departmental collaboration promoting the implementation of ESG practices effectively.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 17
Dual Importance Assessment
Topband keeps optimizing ESG management practices and conducts dual importance issue assessment in conjunction
with internal and external environment changes. The Company has established an ESG issue library containing 22 key issues
based on its business characteristics and actual operations by analyzing development megatrends industry standards and peer
concerns in depth. Through scientific evaluation and argumentation and final internal review by the management an
importance matrix of substantive ESG issues has been formed.Double Importance Assessment Process
Topband Double Importance Analysis Process for Issues
Step Work
1. Understanding the relationship Understand the sustainable development background in which the Company
between company activities and the operates and identify and understand affected stakeholders by interpreting the
business background Company's value chain and domestic and overseas sustainable development
standards (including but not limited to stock exchange information disclosure
requirements and international GRI standards).
2. Establishing a list of issues Identify and screen relevant sustainable development issues and analyze actual and
potential impacts risks and opportunities related to sustainable development issues
preliminarily based on the actual situation of the Company and communication with
stakeholders.
3. Assessing and confirming issue Impact importance assessment: Conduct stakeholder communication through
importance working group assessment conduct assessment in two dimensions – "severity of
impact" (impact scale scope and irretrievability) and "likelihood of impact" and
rank issues by impact importance by reference to opinions of internal and external
experts.Financial importance assessment: Communicate with senior executives and
finance personnel by means of working group assessment conduct assessment in two
dimensions – "likelihood of impact" and "degree of financial impact" and rank
issues by financial importance by reference to opinions of internal and external
experts.Summary of dual importance results: Form a dual importance matrix and identify
boundaries of important issues based on impact importance and financial importance
assessment results.
4. Issue report After review and confirmation by the Company's Strategy and ESG Committee and
Board of Directors disclose key issues of high importance in fiscal year 2025 in the
Report.18
Double Importance Assessment Results
The matrix identifies issues in two dimensions – importance of economic social and environmental impacts and
importance for corporate finance and presents the priority distribution of issues systematically. The Company identifies core
disclosure points of the Report through visual analysis and on this basis optimizes the ESG management system formulates
targeted management plans and promotes the deep integration of ESG concepts into routine operations and strategic planning
providing important support for the continuous improvement of its ESG governance level.Environment▼ Society ▼ Governance ▼
Combat with climate change Employment of employees and their rights and interests Corporate governance
Environmental management and opportunities Occupational safety and health Compliant operations
Water resource management Diversity and equal opportunities Risk management
Pollutant management Employee training and development Information security and privacy
protection
Waste management Product R&D and innovation Business ethics
Biodiversity Product quality and safety
Circular economy Responsible supply chain
Energy management Social welfare
Quality services
Topband Analysis Matrix of Dual Importance Issues
High
Low
Low Importance for corporate finance High
Importance of economic environmental
and social impactsPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 19
Issue Assessment Results
Issues of financial
Issues of dual importance importance Issues of impact importance Ordinary issues
▼▼▼▼
Combat with climate change Circular economy Pollutant management Social welfare
Environmental management and Employee training and development Diversity and equal opportunities Water resource managementopportunities
Waste management Corporate governance Information security and privacy Biodiversity
protection
Energy management Risk management
Employment of employees and their Business ethics
rights and interests
Occupational safety and health
Product R&D and innovation
Product quality and safety
Quality services
Responsible supply chain
Compliant operations20
Stakeholder Communication
Topband always adheres to the concept of open and transparent governance continuously deepens two-way
communication with key stakeholders builds multi-dimensional communication channels and actively listens to and
responds to expectations and demands of all stakeholders for the purpose of building a long-term and sustainable mutual trust
and cooperation relationship.The Company has established multi-dimensional stakeholder communication channels including the general meeting of
shareholders system in-depth symposiums with key customers ESG and industry exchange platform and special dialogue
mechanism with employees and suppliers. In the future the Company will continue to improve its communication
mechanism maintain close contact with key stakeholders and promote the continuous improvement of ESG governance
work.Stakeholders Expectations and demands Response and communication
Government and Greenhouse gas management Response to national policies
regulators Combat with climate change Law-abiding and compliant operations
Environmental management and Adhering to business ethics
opportunities Practicing green development
Water resource management
Pollutant management
Waste management
Corporate governance
Compliant operations
Information security and privacy
protection
Business ethics
Shareholders and other Corporate governance Strengthening mandatory information disclosure and active
investors Protection of shareholders' rights and response (General Meeting of Shareholders investor exchange
interests meeting performance presentation meeting investor hotline
Compliant operations Shenzhen Stock Exchange's interaction platform
Risk management (irm.cninfo.com.cn) official website and official account)
Strengthening corporate governance
Maintaining shareholder rights and interests
Law-abiding and compliant operations
Customers Product R&D and innovation Providing high-quality products and services
High-quality products and services Strengthening customer privacy security and protection
Information security and privacy Adhering to business ethics
protection
Business ethics
Suppliers and other Product quality and safety Strengthening supply chain management
partners Quality services Conducting supplier training
Responsible supply chain Adhering to business ethics
Business ethics
Employees Employment of employees and their Protecting employee rights and interests
rights and interests Ensuring occupational safety and health of employees
Occupational safety and health Promoting employee development
Employee remuneration and benefits Strengthening employee communication (Congress of Workers
Employee training and development and Staff Journal of Yanxingzhe Colleague Bar Employee
Diversity and equal opportunities Experience Platform)
Respecting the diversity of the workplace
Media Pollutant management Enhancing information disclosure
Employment of employees and their Media interview and exchange and cooperation
rights and interests Timely updating the Company's official website
Product quality and safety
Quality services
Business ethics
Community Social welfare Carrying out voluntary service activities
Conducting charity donationsPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 21
Practicing Green Development and
Promoting Ecological Harmony
With the mission of "making the world more 'intelligent' and 'low-carbon'" Topband deeply
practices environmental responsibility and the principle of "prevention first and integration of
prevention and control" pursues coordinated development with all stakeholders' benefits in mind
and has established an environmental management system that complies with ISO 14001. In the
meantime the Company adheres to the principle of synchronous planning implementation and
development of production construction and environmental protection deeply integrates the
intelligence and low-carbon concepts into products and services by fully leveraging the core
technological advantages of the "four electrics and one network (electric control motor battery
power and IoT platform)" and builds a green and sustainable industrial ecosystem to help co-
innovate a smarter future.Clean drinking Economical and Industry Sustainable cities Responsible Terrestrial
water and affordable clean innovation and Climateand communities consumption and organisms
sanitation facilities energy infrastructure actionsproduction22
1.1 Environmental Compliance Management
Topband continues to improve the environmental management system optimize the relevant systems and organizational
structure and ensure comprehensive compliance in environmental management. In addition the Company organizes regular
professional environmental training promotes green office practices and enhances environmental management capabilities
comprehensively.
1.1.1 Environmental management system
The Company keeps improving the environmental management system implements source control process governance
and continuous improvement identifies environmental impacts risks and opportunities systematically strengthens
compliance management and risk prevention and sets clear environmental management goals to promote the standardization
of environmental management and help achieve high-quality green development.· Environmental management system
Topband strictly abides by the Environmental Protection Law of the People's Republic of China the Law of the People's
Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste the Law of the People's
Republic of China on the Prevention and Control of Environmental Noise Pollution and other national laws and regulations
and fully complies with relevant laws and policy requirements in all business locations around the world. It has formulated a
series of internal management systems with focus on the Environmental Analysis and Risks and Opportunity Control
Procedure the Environmental and Safety Management Control Procedure for Stakeholders and the Policy on Labor Health
and Safety Environment Low Carbon and Ethics to ensure compliance and effectiveness in environmental management.The Company has established a hierarchical environmental governance structure with clear responsibilities and efficient
collaboration ensuring the effective integration of environmental and low-carbon strategies from top-level design to
implementation. The President formulates the Company's annual strategic plan coordinates and leads the Company's
environmental management work comprehensively and ensures the input and execution direction of strategic resources. The
President Office organizes regular reviews of the environmental management system to identify the internal and external
environmental factors and needs and expectations of stakeholders accurately evaluate environment-related risks and
opportunities and convert strategic goals into specific management projects. The Administration Department and the
Manufacturing Center work together to ensure the comprehensive coverage of the system through regular internal audits and
achieve the quantitative management and continuous controllability of environmental performance jointly.Environmental Management Organization of Topband
President
President
The first person in charge of environmental management assuming
comprehensive leadership responsibility for company-wide
environmental protection work
President Office
Administration Department Manufacturing Center
Presiding over the Company's routine environmental management work Regularly monitoring the Company's pollutant emissions to ensure compliancewith laws regulations and other requirements
Develop the environmental protection management system implement relevant environmental Strengthening production process control and bringing environmental impact
laws regulations and other policy documents and establish management files and ledgers. reduction in the production process into routine management
Invite external organizations to monitor the Company's environmental indicators.Raising employees' environmental protection awarenessPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 23
Topband formulates clear environmental indicators and action plans annually based on its actual operational situation
relevant regulatory requirements and customer needs along with policy guidance and industry best practices. In 2025 the
Company continued to make intensive efforts in environmental compliance management. Multiple bases of the Company
have been certified to the ISO 14001 environmental management system. These qualifications are an authoritative
recognition of the mature standardized and effective environmental management system of the Company.Bases that have been certified to the ISO 14001 environmental management system (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Ningbo Topband Certified
4 Nantong Topband Certified
5 Topband Vietnam Certified
6 Topband Romania Certified
7 Topband Mexico Certified
8 Topband India Certified
Case Winning WIK's "2025 Sustainable Supplier Award"
At the 2025 Annual Supplier Conference held by WIK Topband received the only "2025 Sustainable Supplier
Award" of the year for its outstanding performance in environmental management compliance green and intelligent
manufacturing system and R&D of ecofriendly alternative materials. This honor signifies that the Company's practices
in product lifecycle management and sustainable supply chain building have been highly recognized by important
international customers.Topband has always been committed to extending the ESG concept downstream along the value chain. During the
conference the Company and WIK reached strategic consensus on deepening green ecological cooperation: in the future
both sides will accelerate the efficient integration of supply chain resources and technological innovation jointly
promote the research and application of low-carbon technologies in the field of home appliances take practical actions to
address climate change and explore circular economy models in the field of electronic waste treatment through
intelligent manufacturing to address global sustainable development challenges together.24
· Environmental risk and opportunity management
The Company adopts the risk management strategy of "prevention first and emergency response second" to carry out
environmental risk management work systematically. The Company has developed internal system documents such as the
Environmental Analysis and Risk and Opportunity Control Procedure the Organizational Environment Identification Table
and the Risk and Opportunity Evaluation and Response Planning Table forming a standardized management matrix to
identify and evaluate key environmental factors and potential environmental risks and opportunities in organizational
operations comprehensively and scientifically. Under the unified authorization of the Group the Company continues to push
risk prevention deeper. During the Reporting Period the two core regions/overseas bases of Nantong Topband and Topband
Vietnam introduced and implemented a risk level assessment mechanism and formulated corresponding prevention and
control measures concurrently to achieve refined and localized risk management.In response to environmental emergencies the Company has formulated the Contingency Plan for Environmental
Emergencies and completed environmental protection filing according to law. The plan covers core aspects such as risk
assessment emergency response and post-event recovery to ensure that the disposal process can be quickly initiated in case
of an environmental emergency thereby minimizing negative impacts. In the meantime the Company conducts regular
emergency drills on chemical and hazardous waste leakage every year to optimize the emergency response mechanism and
improve the emergency response capability continuously. During the Reporting Period the Company did not experience any
sudden major environmental incident and did not receive any environmental administrative penalty.· Environmental management objectives
To promote environmental management practices systematically all production bases of the Company have set clear and
measurable annual environmental management targets based on specific circumstances and impacts.Production base 2025 targets and progress
Shenzhen Topband · No chemical leakage accident occurred; meeting the target
· Wastewater complied with the Level 1 standard of Period 2 of the Emission Limits of Water Pollutants
(DB44/26-2001); meeting the target
· Industrial waste gas complied with the Level 2 standard of Period 2 of the Emission Limits of Air Pollutants
(DB44/27-2001) and discharged waste gas was treated up to the specified standard before discharge through
pipelines at high altitudes; meeting the target
Huizhou Topband · No chemical leakage accident occurred; meeting the target
· Wastewater complied with the Level 3 standard of Period 2 of the Emission Limits of Water Pollutants
(DB44/26-2001); meeting the target
· Industrial waste gas complied with the Level 2 standard of Period 2 of the Emission Limits of Air Pollutants
(DB44/27-2001) and discharged waste gas was treated up to the specified standard before discharge through
pipelines at high altitudes; meeting the target
Nantong Topband · The environmental management targets include: There is no illegal discharge of hazardous waste illegal
discharge or leakage; there is no illegal discharge or leakage of pollutants such as exhaust gas and wastewater;
pollutants in exhaust gas and wastewater are discharged up to concentration standards; regularly monitoring is
conducted according to the pollutant discharge permit; the total amount of wastewater discharge does not exceed
the specified value; all targets are met with a completion rate of 100%.Ningbo Topband · No chemical leakage accident occurred; meeting the target
· Wastewater complied with the Level 3 standard of the Integrated Wastewater Discharge Standard (GB 8978-
1996); meeting the target
· Industrial waste gas met the Level 2 standard of the Comprehensive Emission Standards for Air Pollutants (GB
16297-1996) and discharged waste gas was treated up to the specified standard before discharge through
pipelines at high altitudes; meeting the target
Topband Vietnam · No chemical leakage accident occurred; meeting the target
· Industrial waste gas emissions met the standards of QCVN 19:2009/BTNMT and QCVN 20:2009/BTNMT and
discharged waste gas was treated up to the specified standard before being discharge through pipelines at high
altitudes; meeting the targetPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 25
Topband Romania · The number of waste management nonconformities reported in audits and inspections was ≤1; meeting the
target
· The number of major fines exceeding 5000 Leu from the environmental protection bureau labor bureau and
fire department was 0; meeting the target
· The number of complaints from company employees to the administration department regarding waste
collection and treatment in the factory area was ≤1; meeting the target
· The number of environmental declarations made within the time limit specified by the environmental protection
bureau/the number of environmental declarations that shall be made = 100%; meeting the target
Topband Mexico · Environmental pollution accidents < 2; meeting the target
· 0 environmental complaint from stakeholders; meeting the target
Topband India · No chemical leakage accident occurred; meeting the target
· 100% compliance in waste disposal; meeting the target
1.1.2 Green culture building
Topband deeply integrates the green concept into routine operations and the corporate culture. By creating a green office
environment and conducting diversified environmental protection training it improves employees' environmental awareness
and strengthens the building of a green culture comprehensively.· Green office
The Company actively practices the concept of green office and continues to promote energy conservation and
consumption reduction in office work. The Company integrates the environmental protection concept into routine operations
and guides employees to develop green office habits by various means such as promoting paperless office strengthening
resource recycling implementing energy and water conservation transformation and advocating low-carbon travel.Training type Specific scope
Paperless office · The use of electronic documents and emails is encouraged to reduce paper usage.· Default settings for printers and copiers are set reasonably such as double-sided printing and font reduction to
reduce the waste of paper.Recycling of · Waste sorting facilities were set up and employees were encouraged to sort waste properly. Recycling was
resources promoted and recycling bins were set up to collect recyclables such as paper plastic bottles and batteries.· Recycling of computers was carried out to extend the service life;
· Recycling of waste batteries was carried out to reduce environmental pollution;
· Recycling of office desks and chairs was carried out reduce waste of resources;
· A stationery sharing desk was set up for office supplies that are still in their lifecycle as evaluated.· Channels for the cross-departmental circulation and recycling of production consumables were provided.· Bottled water was replaced with direct water dispensers (155 in total) reducing plastic waste transfer and
storage steps and carbon emissions effectively.Energy conservation · The LED lighting system in the office area was upgraded and intelligent temperature control devices were
installed for air conditioners reducing energy consumption effectively.Water conservation · Leaking equipment was repaired and water-saving devices were used such as installing water-saving devices
on washbasin faucets in the office area and replacing old-fashioned faucets in dormitories with water-saving
showerheads and faucets.· Employees were encouraged to reduce water consumption such as shortening hand washing time and using
flush toilets reasonably.Low-carbon travel · Employees were encouraged to use green modes of transportation such as public transit and shared bicycles.· Electric vehicle charging facilities were installed in some parks.26
· Training for environmental protection
Topband carries out a variety of environmental protection training to effectively enhance the environmental awareness
and practical ability of employees. The Company has established a three-level (company workshop and shift) environmental
training system to ensure that both new and transferred employees receive systematic environmental education. We adopt a
combination of special training practical drills and themed activities to strengthen the pertinence and effectiveness of
training. The training covers the basic knowledge of hazardous waste relevant laws regulations and standards management
systems and operating procedures of the Company the proper use and maintenance of PPE/supplies and emergency rescue
measures in case of an accident.Case Huizhou Topband conducts environmental protection training to improveemployees' sense of green responsibility
On July 25 2025 Huizhou Topband conducted environmental protection training for management personnel of
various business units and employees exposed to or managing hazardous waste. The training revolved around four
aspects: the concept of hazardous waste regulatory requirements basic information of hazardous waste in the
factory area and data analysis of hazardous waste. Special assessment was organized simultaneously to improve the
effectiveness of the training.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 27
1.2 Combat with Climate Change
Under the severe situation of global warming Topband has defined the climate action framework of "two increases and
two decreases" based on the practical exploration into the path to realize low-carbon manufacturing namely "increasing
energy efficiency + increasing new energy" and "industrial carbon reduction + conservation for carbon reduction" and set the
strategic goal of "creating carbon-neutral parks zero-carbon plants and green products" to promote corporate climate
governance systematically. In 2025 Shenzhen Topband further expanded implementation paths of the "two increases and two
decreases" by taking four energy conservation measures namely deploying energy storage cabinets 720 kW supercharging
piles solar streetlamps and radar induction switches in public areas to improve the energy efficiency level comprehensively
and implement energy conservation and carbon reduction measures."Two increases" - energy efficiency increase and new "Two decreases" - industrial carbon reduction and
energy increase conservation for carbon reduction
Energy efficiency increase is to improve energy Industrial carbon reduction refers to optimizing and
efficiency. By promoting low inventory production upgrading the industrial structure. The Company actively
strengthening manufacturing collaboration improving the lays out green industries such as smart energy and
process management level using low-carbon raw intelligent driving LiDARs relying on technology
materials and subjecting high-carbon energy sources to platforms such as frequency conversion lithium batteries
low-carbon treatment energy efficiency is improved and integrated control to promote production automation
comprehensively. industrial automation and green transportation and
achieve low-carbon upgrading at the industrial level.New energy increase refers to developing and actively
expanding non-fossil energy such as solar energy Conservation for carbon reduction means developing
hydropower wind energy and hydrogen energy. a low-carbon culture. A number of measures are
Currently the Company takes PV as the main entry point implemented internally including resource recycling
of utilizing non-fossil energy and has installed PV roofs in paperless office green business energy conservation
the Shenzhen Huizhou and Ningbo Parks. transformation of offices using low-energy equipment
and water-saving devices and increasing the green plant
coverage in the park to integrate energy conservation and
carbon reduction into routine operations.
1.2.1 Greenhouse gas management
In accordance with ISO 14064-1:2018 the Guidance for Quantification and Reporting of the Organization's Greenhouse
Gas Emissions (SZDB/Z 69-2018) the Guidance for Verification of the Organization's Greenhouse Gas Emissions (SZDB/Z
70-2018) the Technical Points for Carbon Emission Verification of Carbon Trading Controlled Organizations in Shenzhen
and the laws regulations and norms applicable to the places where the Company's production bases are located Topband
conducts self-inspection and verification on greenhouse gas emissions in Scope 1 (direct) and Scope 2 (indirect) within the
organizational and reporting boundaries annually. In addition to internal self-inspection the Shenzhen Plant's greenhouse gas
emission data would be verified independently and regularly by a qualified third-party agency hired by the government to
improve data reliability. In 2025 Huizhou Topband promoted the verification of Scope 3 carbon emissions and further
implemented the carbon management responsibility throughout the value chain.28
Greenhouse gas emission data 2023 2024 2025
Total greenhouse gas emissions (tCO2e) - Shenzhen Plant 13690.03 15421.36 14839.66
Total greenhouse gas emissions (tCO2e) - Huizhou Plant / 28123.96 35616.70
Total greenhouse gas emissions (tCO2e) - Nantong Plant / / 11810.40
Scope 1: Direct greenhouse gas emissions (tCO2e) 123.03 767.63 837.65
Scope 2: Indirect greenhouse gas emissions (tCO2e) 13567.00 42777.69 52664.67
Scope 3: Other indirect greenhouse gas emissions (tCO2e) / / 8764.44
- Huizhou Plant
Total greenhouse gas emissions (tCO2e) 13690.03 43545.32 62266.76
Note on the updated scope of statistics: In 2025 the scope of data statistics for Scope 1 and Scope 2 was further
expanded to include the Nantong Plant on the basis of the existing Shenzhen and Huizhou Plants; the Huizhou Plant
was newly included in the scope of statistics for Scope 3.Note: The Scope 1 and Scope 2 data covers all activities related to CO2 emissions in production areas office areas and
living areas of Topband the Shiyan Branch and the wholly-owned subsidiaries registered in Shiyan Shenzhen Huizhou
Topband and Nantong Topband. The greenhouse gas emission data in 2025 is preliminary data and the final data shall be
subject to approval by the ecology and environment bureau.In the meantime Topband continues to promote the full-
lifecycle carbon footprint management of its products. The
Company employs a qualified third-party agency to conduct
quantitative calculation assessment and verification of carbon
emissions of some products over the half lifecycle in
accordance with standards including the Greenhouse Gases -
Carbon Footprint of Products - Requirements and Guidelines
for Quantification (ISO 14067:2018) the Greenhouse Gases -
Carbon Footprint of Products - Requirements and Guidelines
for Quantification (GB/T24067-2024) the Technical
Requirements for Carbon Footprint Assessment of Lithium
Battery Cell (T/SQIA059-2023) and Technical Requirements
for Carbon Footprint Assessment of Power Adapter
(T/SQIA091-2023). The Company's lithium iron phosphate
battery pack and energy storage battery management system
have passed product carbon footprint certification providing
key qualifications for products to participate in green
procurement and gain market competitive advantages. Product Carbon Footprint Conformity CertificatePracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 29
Case Topband launches the independently developed "Zero-carbon Cloud" platform
In 2025 in face of the increasingly stringent global requirements for climate action and the demand for refined
corporate carbon emission management Topband officially launched its independently developed "Zero-carbon
Cloud" platform by integrating digital technology with the energy system actively to empower full-chain greenhouse
gas management through digital innovation and help achieve systematic and intelligent zero-carbon operations for
the Company and parks.This platform achieves the real-time collection centralized monitoring and intelligent optimal scheduling of
data from photovoltaic power generation energy storage charging and discharging charging load and other aspects
using IoT and data middle office technology and builds three intelligent collaborative modules: "cloud
photovoltaic" "cloud storage" and "cloud charging" improving the overall operational efficiency and green
electricity consumption level of the energy system significantly.Based on the deployment and application of the "Zero-carbon Cloud" platform corporate customers can
achieve the unified management and strategic optimization of energy systems increasing the proportion of clean
energy and reducing carbon emissions per unit of energy consumption effectively while ensuring energy security
and stability. Currently the platform has been deployed and verified in multiple scenarios of integrated photovoltaic
storage and charging providing a replicable and sustainable implementation path for low-carbon transformation in
industrial and commercial parks charging stations and other scenarios.Topband Zero-carbon Cloud
Applica
tion
functio Virtual power plantPanoramic Intelligent Coordinated control Electricity Data analysis Smart O&M dispatching center
n monitoring prediction management
Generati
on Peak shaving and Demand control Dynamic capacity Demand Orderly charging
strategy valley filling expansion response Electricity trading
market
Micro-grid central controller
Edge computer
Municipal power grid Photovoltaic powergeneration Energy storage system Charging pile Controllable load
The data in the picture is for Photovoltaic Storage Charging Application
illustration.Interface of the Topband Zero-carbon Cloud Topband Zero-carbon Cloud – Cloud-edge-device
Architecture
Topband implements the green development strategy actively and keeps deepening its carbon management system and
refined energy operations. Currently the Company's core low-carbon "storage" and "charging" products are achieving the
precise control and continuous optimization of product carbon footprint gradually. In the future the Company will keep
promoting the optimization of green operational system reducing carbon emission intensity and contributing to the
achievement of the "dual carbon" goal.
1.2.2 Seizing climate opportunities
In the process of jointly addressing the climate crisis globally energy transformation and industrial upgrading driven by
technological innovation have become the core path to achieve the carbon neutrality goal. The continuous expansion and
deepening of new energy application scenarios have opened up vast growth opportunities for enterprises that make forward-
looking arrangements.As a pioneer in the industry Topband is seizing this historic opportunity actively. The Company not only integrates the
low-carbon intelligent concept into product planning and R&D design systematically through internal discussions standard
interpretation and other activities but also participates actively in industry standard formulation as a member of the Shenzhen
Energy Storage Standardization Committee to promote the high-quality development of the industry.Based on its profound expertise in the field of intelligent control the Company keeps deepening cooperation with top
customers in the home appliance and tool industries to build a green and sustainable supply chain together. In the field of new
energy the Company has continuously expanded its business scale through close cooperation with strategic partners such as
China Tower and supplied high-reliability battery products to diverse markets such as light-duty power industrial vehicles
and robots forming significant market influence and good reputation.30
The Topband MWh-level liquid-cooled energy storage system is deployed in India expanding
Case new space in the energy storage market
In 2025 India experienced extreme high temperatures and frequent power outages and the need to ensure
people's livelihoods and production through energy storage accelerated the release of market demand. In July 2025
the 1MW/2.236MWh liquid-cooled energy storage container system customized by Topband for an Indian customer
was shipped successfully and connected to the grid and put into operation at a chain five-star hotel under Tata
Group in Haryana. This project addresses the pain points of India's unstable power grid and the high reliance of
enterprises on high carbon diesel generators directly and provides a stable and clean backup power source using a
zero-emission low-noise energy storage system offering a practical and feasible model for local low-carbon
transformation. The system adopts a highly integrated TEU design shortening the transportation and installation
cycle significantly fully meeting the certification requirements of the Indian market and achieving fast and
compliant delivery.As the Company's first MWh-level industrial and commercial energy storage project in the Indian market this
project not only sets a new record in overseas single-unit delivery capacity but also marks a new stage in the
Company's overseas deployment in the field of large-capacity industrial and commercial energy storage.Shipment Scene Intelligent Liquid-cooled Thermal Management System
Case Topband's one-stop cloud photovoltaic storage and charging solution makes its debut at the2025 International Digital Energy Expo to seize energy digitization opportunities
At the 2025 International Digital Energy Expo Topband showcased its fully self-developed liquid-cooled
energy storage system and "cloud photovoltaic storage and charging" integrated product matrix highlighting its
frontier achievements in energy storage safety wireless parallel connection and digital operations.The exhibited liquid-cooled energy storage system adopts a multi-level safety design and 5kW level liquid-
cooled temperature control technology to limit the temperature difference of the cells to 3°C accurately ensuring
system safety fundamentally extending the battery life significantly and bringing longer-term and more stable
investment return to customers.Booth All-in-one Liquid-cooled Machine Energy
Storage SystemPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 31
1.3 Utilizing Resources Efficiently
Topband achieves the goal of efficient resource recycling by continuously improving energy water resources and
material management and reducing the waste of resources laying a solid foundation for green and low-carbon operations
and promoting the in-depth implementation of the sustainable development concept.
1.3.1 Optimizing energy management
The Company has established a full-process energy management system that covers use monitoring and improvement
integrating the concepts of energy conservation consumption reduction and green low-carbon development deeply into the
entire production and operation process and promoting the steady optimization of energy consumption.· Energy management system
Topband strictly abides by the Energy Conservation Law of the People's Republic of China and other national laws and
regulations as well as applicable relevant laws regulations and policy documents of regions where its global business is
located and has established a series of internal systems such as the Energy Management Operation Mechanism the Measures
for Assessment of Energy Target Management and the Energy Statistics Management System. In order to continuously
improve management efficiency the Company newly formulated the Management Regulations for Energy Conservation and
Consumption Reduction in 2025 to manage energy consumption including water electricity gas etc. in various regions and
promote refined and systematic energy management.Each branch or subsidiary formulated and implemented a series of energy conservation measures and management
regulations based on the guidelines of the headquarters and their own actual situation. Among others Shenzhen Topband
formulated the Energy Waste Registration System based on the General Provisions of the Regulations on Management of
Environmental Protection and other systems and included energy conservation targets in annual KPI assessment to
strengthen the implementation of responsibilities; Ningbo Topband and Nantong Topband formulated and implemented the
System for the Management of Energy-saving Operation and the Regulations on the Management of Energy-saving Use of
Hydropower to regulate routine energy consumption behavior.Topband built an energy management architecture across the Company and business unit levels to ensure the effective
implementation and supervision of energy management strategies at all levels. Each branch or subsidiary set up an energy
leading group headed by its president and composed of representatives from business units responsible for leading the
assessment of energy targets. Each business unit set up a special energy management group. The group leader is responsible
for coordinating company-level energy conservation tasks and cross-departmental actions and carrying out monthly energy
consumption inspections special meetings and rectification tracking routinely. The representative of each department is
responsible for the energy management of the department covering energy-saving improvement in multiple aspects such as
production quality engineering and warehousing; the energy conservation inspection specialist is responsible for routine
energy conservation inspections and monthly inspections to ensure the continuous and effective operation of the energy
management system.· Promoting energy efficiency improvement
2025
Compared with 2024 the Company's actual energy consumption per RMB 10000 of output value
decreased by 11.36%.Note: Year-on-year change rate of energy consumption per RMB 10000 of output value (unit: MWh per RMB 10000 of output value) = (energy
consumption per RMB 10000 of output value in 2025 – energy consumption per RMB 10000 of output value in 2024)/energy consumption per RMB
10000 of output value in 2024 * 100%; the scope of statistics covers all production areas and associated living areas of the Company's headquarters and
wholly-owned subsidiaries.32
On the basis of a sound energy management system and a sound organizational structure the Company has established a
systematic energy management operation mechanism that runs through "target setting – execution – monitoring –
improvement" and integrates various basic energy conservation tasks forming a closed management loop.Guided by medium- to long-term plans and annual plans the Company beaks down energy conservation targets to
various levels scientifically and supports them through basic tasks such as energy consumption statistics and analysis and
energy measurement. The Company fully utilizes the data analysis function of the energy management platform to improve
the list of high-power equipment and establishes an energy management card to monitor the operating status of key
equipment achieving precise control over energy consumption.In terms of process control and continuous improvement the Company has established a normalized energy auditing and
inspection mechanism. Through internal energy consumption data the Company accurately locates and rectifies energy waste
problems. In terms of organizational execution the Company organizes monthly special cross-departmental energy
consumption inspections to identify potential problems comprehensively; the energy management team of each business unit
conducts two internal energy consumption inspections a month and holds special meetings for tracking and rectification
ensuring that measures are implemented at the end. Through full-process control the Company provides solid support for the
efficient utilization of resources.Energy
conservation Specific measures
type
· Enhancement of control over equipment power consumption: The control of air conditioning temperature and lighting was
optimized air conditioning temperature was fixed at 24°C-26°C and a responsible person was designated for supervision and control;
the lighting system in workshops and offices was finely managed; the use and shutdown process of key high-power equipment was
standardized to avoid power waste caused by the long-term idling or standing-by of equipment.Optimization · Improvement of the inspection system: Current electricity use is inspected and inspection results were disclosed once or twice amonth. In addition the energy consumption inspection mechanism was implemented to improve the understanding of and support for
of control energy-saving and consumption reduction actions through regular energy consumption inspections and summary meetings.measures · Classified management of energy consuming equipment: Reasonable power on/off and standby times were verified for high-powerequipment (wave soldering).· Application of intelligent control system: Intelligent control technology was introduced to achieve precise temperature and humidity
management; intelligent control was implemented for workshop air conditioners supporting remote monitoring to further optimize
energy efficiency; high energy consumption equipment (air conditioners exhaust fans) was put on the intelligent management platform
to control wind speed operating power and automatic power-off and reduce energy consumption.· Upgrading of equipment in living and office areas: Equipment with first-class energy efficiency was used instead in dormitories;
the lighting system in the office area was optimized for energy saving.· Optimization of workshop equipment and ventilation system: Efficient smoke purifiers were used and separate control valves
Equipment were added for soldering smoke purification; air curtains were installed at the exit of workshops and thermal insulation paper wasinstalled on doors and windows to reduce cold air loss and heat transfer; the workshop exhausting system was changed to a combination
renewal and of timer and automatic variable-frequency control with noon breaks on workdays (about 2h per day); exhaust fan frequency converters
modernization were subject to automatic frequency reduction to reduce energy consumption during peak hours of electricity consumption.· Modification of heating equipment and thermal insulation: For all newly purchased heating equipment thermal insulation
structure was added as required to reduce the loss of heat energy of equipment and improve the refrigeration effect of air conditioning;
existing old heating equipment such as wave and reflow soldering equipment was subject to thermal insulation to reduce heat
conduction and save air conditioning costs.Energy · Waste heat recovery: Huizhou Topband and Ningbo Topband converted waste heat generated during the operation of the aircompressor into hot water resources by an installed waste heat recovery device.recovery · Steam condensate waste heat recovery: Nantong Topband recovered steam condensate waste heat to provide hot water for
employees' daily life.* Construction of "photovoltaic power generation + energy storage" green parks: Each park continues to promote the construction
of photovoltaic power generation.* Shenzhen Topband: The capacity of the existing photovoltaic system was 340 kWp. In 2025 the photovoltaic power output was 285
Use of MWh and for its own use only.* Huizhou Topband: The capacity of the photovoltaic power station was 1354 kWp. In 2025 the photovoltaic power output was
renewable 1424.68 MWh.energy * Ningbo Topband: The capacity of the photovoltaic power station was 1479.089 kWp. In 2025 the photovoltaic power output was1486.288 MWh the self-use power consumption was 1431.808 MWh the residual electricity fed into the grid was 42.8 MWh and the
photovoltaic power output accounted for 14.9% of the park's electricity consumption.* Nantong Topband: The capacity of the photovoltaic installed system was 1817.22 kWp which was put into operation in May 2025
with a photovoltaic power output of 1346.816 MWh during May-December.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 33
Indicator Unit 2023 2024 2025
Annual total energy consumption *1 MWh 100971.70 129865.79 135485.92
Renewable energy power generation MWh 2239.00 4311.47 4542.78
Natural gas m3 215907.00 141846.00 144891.00
Outsourced electricity MWh 96573.63 122997.90 129263.91
Power consumption *2 MWh 98812.63 127309.37 133806.69
*1: Annual total energy consumption (MWh) = Σ (fossil energy consumption x corresponding energy density/3600) + outsourced electricity (MWh) +
power output of renewable energy (MWh) – photovoltaic power output (MWh); fossil energy refers to gasoline diesel and natural gas with energy
density/calorific values being 33.4 MJ/L 36.8 MJ/L and 37 MJ/m3 respectively; 3600 is the conversion factor between MJ and MWh.*2: Updated calculation method in 2025: electricity consumption = outsourced electricity + power output where "power output" refers specifically to "power
output of renewable energy".
1.3.2 Strengthening water-saving management
2025
Compared with 2024 the Company's total water consumption per RMB 10000 of actual output value
decreased by 4.98%.Note: Year-on-year change rate of water consumption per RMB 10000 of output value (unit: cubic meter per RMB 10000 of output value) = (water
consumption per RMB 10000 of output value in 2025 – water consumption per RMB 10000 of output value in 2024)/water consumption per RMB 10000
of output value in 2024 * 100%; the scope of statistics covers all production areas and associated living areas of the Company's headquarters and wholly-
owned subsidiaries.Topband complies with domestic laws and regulations such as the Water Law of the People's Republic of China and the
Regulations on Water Conservation as well as applicable regulations in other regions where its global business is located.The Company has established a comprehensive water resource management system including the Management Regulations
for Water and Electricity Use the Management Regulations for Wastewater Pollution and Management Regulations for
Environmental Protection and Energy Conservation and Emission Reduction specifying the management requirements for
the whole process from water use and water conservation to drainage and treatment and providing clear policy guidance and
specifications for water conservation work.The Company regards "recycling and resource conservation" as one of its core principles and guides all employees to
practice the water conservation concept. In addition the Company continues to improve its water conservation management
system and promote technological innovation and behavior change in order to reduce water consumption intensity and
achieve the sustainable management of water resources while maintaining business growth.34
Type of
technological Specific measures
transformation
In the production process after steam condensate is recovered reclaimed water is delivered to the
Process water reuse dormitory area through a dedicated pipeline for use in the toilet flushing system achieving the
cascade and circular utilization of water resources.A frequency converter is installed for the cooling water pump and connected to the automatic control
Cooling system
system which can adjust the water circulation flow automatically based on the actual load and reduce
optimization
the energy and water consumption of the water pump during low load periods significantly.Each production project is provided with multiple circulating cooling towers to ensure that cooling
Circulating cooling
water is reused in a closed-loop system reducing the amount of one-time water replenishment
system
significantly.In routine operations the Company implements water conservation measures comprehensively through refined
management and publicity guidance.Routine
Specific measures
management
· Water consumption data was analyzed based on monthly meter reading records causes of water
Water use consumption differences were accurately located and they were handled in time.monitoring · Water-saving facilities including faucet water savers water-saving showers and sensor faucets
were regularly inspected and maintained and water leaks were repaired in a timely manner.· Water-saving showers or sensor faucets were used in the park to reduce the waste of water
resources which is expected to save about 4000 cubic meters of water every year under ideal
Equipment conditions.upgrading · A central drinking water filtration system was used for water dispensers in dormitories to achieve
water-saving and electricity-saving effects which is expected to save about 8500 kilowatt hours of
electricity and 450 cubic meters of water per year.Water-saving · In the park water-saving publicity activities were widely carried out and water-saving signs were
publicity posted to create a strong water-saving atmosphere.
1.4 Joint Ecological Protection
Topband adheres to the concept of systematic environmental management fully integrates ecological protection
requirements into the whole production and operation process strengthens chemical safety management prevents noise
pollution scientifically and deeply implements ecological and biodiversity protection measures to practice green
development responsibilities and promote harmonious coexistence between humanity and nature comprehensively.
1.4.1 Management of the three wastes
Through the scientific and standardized management of the three wastes Topband effectively controls the environmental
impact of wastewater waste gas and solid waste generated in the production process ensures their up-to-standard discharge
and standardized treatment and earnestly fulfills its corporate environmental protection responsibilities through a
combination of source control process management and compliant disposal.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 35
· Management of wastewater discharge
Topband strictly adheres to the Emission Limits of Water Pollutants (DB 44/26-2001) the Integrated Wastewater
Discharge Standard (GB 8978-1996) the Wastewater Quality Standards for Discharge into Municipal Sewers (GB/T 31962-
2015) and applicable regulations in other regions where its global business is located and has formulated internal systems
such as the Emergency Control Procedure for the Nonconforming Discharge of Wastewater from Wastewater Treatment
Plants and the Management Guidelines for Wastewater Discharge Exhaust Emissions and Noise for routine management.Topband strictly monitors key indicators in wastewater including pH value suspended solids chemical oxygen demand
(COD) ammonia nitrogen total phosphorus total nitrogen and animal and vegetable oils and implements a classified
treatment strategy to prevent industrial wastewater from mixing with domestic wastewater for treatment. Domestic
wastewater flows into municipal pipelines for centralized treatment by the wastewater treatment plant. In addition the
Company arranges for a qualified organization to conduct domestic wastewater discharge indicator testing at least once a year.In 2025 the Company met the target of up-to-standard wastewater discharge.Domestic wastewater Industrial wastewater
It mainly includes toilet and kitchen wastewater. It strictly implements the zero emission principle
Toilet wastewater is discharged into the municipal and hands over all hazardous waste to qualified third-
pipeline network through the existing drainage system in party hazardous waste disposal companies for disposal.the park for treatment in the municipal wastewater Nantong Topband has built a dedicated production
treatment plant. Kitchen wastewater is filtered and wastewater treatment station to monitor drainage data in
discharged into the drainage pipeline of the industrial real time and connect it to the online monitoring system
park. Nantong Topband has built a domestic wastewater of the environmental protection bureau for dynamic
treatment station to treat domestic wastewater within the supervision.factory area and reduce the impact of domestic
wastewater on the municipal wastewater treatment
system.Wastewater control mechanism
· Fully implement the separation of rainwater and wastewater ensuring the independent operation of
rainwater and wastewater pipeline systems;
· All construction reconstruction and expansion projects are provided with rainwater discharge
facilities to prevent wastewater from entering rainwater pipelines by mistake;
Rainwater · The Company's Administration Department regularly organizes inspections of the drainage system
discharge control to ensure smooth operation of the pipeline network;
· The Company's Administration Department regularly contacts a qualified agency to inspect
rainwater discharge at least once a year. If the inspection results do not meet the limits specified for
environmental impact assessment the Administration Department is responsible for identifying the
cause and making improvement until the standard is met.· The canteen grease trap is regularly cleaned and a filter is provided at the wastewater outlet to
prevent oily wastewater from being discharged directly into the sewer without treatment;
· The storage of waste in open air is standardized to prevent wastewater from flowing into rainwater
pipelines;
Wastewater
· It is prohibited to wash vehicles in the Company to prevent oil stains from entering the drainage
treatment operating
system;
procedures
· Oils and chemicals dripping on the floor are wiped up with a rag and it is forbidden to flush them
with water into the sewer;
· Wastewater generated by screen cleaning and equipment cleaning is uniformly collected and handed
over to a qualified environmental protection company for treatment.36
· Exhaust emission management
Topband has formulated internal systems such as the Management Regulations for Exhaust Emissions and the Control
and Management Guidelines for Wastewater Discharge Exhaust Emissions and Noise in accordance with the Environmental
Protection Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control
of Atmospheric Pollution and relevant laws and regulations in places where its plants are located as well as the Integrated
Emission Standard of Air Pollutants (GB16297-1996) the Integrated Emission Standard of Volatile Organic Compounds for
Stationary Pollution Sources (DB442367-2022) (Guangdong) the Ambient Air Quality Standards (GB3095-2012) the
Emission Limits of Air Pollutants (DB44/27-2001) (Guangdong) the Emission Standards of Pollutants for Battery Industry
(GB30484-2013) and other standards and specifications laying an institutional foundation of harmless exhaust treatment.Waste gas pollutants generated in the Company's production and operation process mainly include volatile organic
compounds (VOCs) non-methane total hydrocarbon concentration particulate matter and canteen fumes. The Company has
adopted diversified treatment strategies based on their characteristics to ensure that waste gas emissions comply with
standards. In 2025 the New Energy Business Unit completed the upgrading of environmental protection equipment replaced
the former photocatalytic waste gas treatment facility with an activated carbon adsorption system and established a regular
replacement mechanism to improve the treatment efficiency of VOCs.Waste gas control measures
· Equipment with large waste gas emissions and great environmental impact shall be provided with
exhaust gas treatment devices to ensure that waste gas emissions meet the requirements of laws and
regulations;
Supporting · All departments are required to take waste gas into consideration and install waste gas collection
facilities for waste devices for pollution-producing equipment and facilities during project construction reconstruction and
gas treatment expansion;· When the waste gas generating equipment is working the waste gas collection device must be turned
equipment on and the direct discharge of waste gas is prohibited;
· Waste gas generated at the production site is collected by the exhaust fan at the work site and then
discharged after being adsorbed by activated carbon in the waste gas treatment device on the roof of the
factory building.· Third-party agencies with nationally recognized qualifications are entrusted for
monitoring/measurement regularly among which the New Energy Business Unit engages an external
Monitoring and testing agency with nationally recognized qualifications for monitoring at least twice a year to ensure
management of data authority and reliability;
waste gas · All monitoring results are summarized by the Company's Administration Department which fills in
and publishes the monitoring data on the national pollution source platform takes corrective measures
for nonconformities and tracks the effectiveness of these measures to form a closed management loop.· Spot checks are conducted on environmental protection equipment on time and the activated carbon
inside the environmental protection equipment used to absorb waste gas pollutants is regularly replaced;
Routine O&M · Domestic waste gas generated in the Company's canteen is purified by the kitchen air purifier before
and awareness being discharged;
· Annual inspection is conducted on all vehicles of the Company to ensure that exhaust emissions meet
enhancement legal and regulatory requirements;
· Internal training and publicity are strengthened to improve employees' awareness of waste gas
emission reduction and environmental protection continuously.All Topband bases strengthened waste gas treatment in 2025
Nantong Topband: It focused on the control of Topband Vietnam: It optimized the exhaust gas
unorganized emissions and added dust collection collection and treatment process using an activated
devices in relevant dust production steps. By carbon box adsorption device combined with an
strengthening local sealing and centralized ventilation optimized air duct exhaust system. This combined
the effective capture of particulate matter was achieved process improved the overall removal efficiency of
reducing the escape of unorganized dust in the factory pollutants.area.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 37
· Waste management
Topband adheres to the Law of the People's Republic of China on Prevention and Control of Environmental Pollution by
Solid Waste the National Catalogue of Hazardous Wastes and other applicable laws regulations and policy documents in
regions where its global business is located and has formulated waste management systems such as the Waste Management
System the Environmentally Hazardous Waste Management System and the Hazardous Waste Management Regulations.The Company is committed to reducing the generation of waste from the source. It introduces ecofriendly materials by
upgrading production and technology and adopts advanced technologies such as activated carbon adsorption laser welding
and wash-free cast welding machines to reduce the waste generation rate effectively. The Company's Administration
Department is responsible for sorting collecting and transferring waste and ensuring that ordinary and hazardous waste is
stored separately and handed over to professional waste treatment stations for recycling respectively so as to achieve
standardized waste management. Hazardous waste is uniformly transported to qualified third-party agencies for compliant
disposal while general industrial solid waste is entrusted to qualified manufacturers for harmless recycling and treatment. In
2025 Ningbo Topband replaced recyclable granular activated carbon to further reduce the generation of hazardous waste.
Disposal of hazardous waste
· For the storage utilization and transportation of hazardous waste the Company has established a hazardous waste record
management system and arranged personnel to maintain data on the hazardous waste management platform fully
understanding the types and quantities of hazardous waste.· During the collection storage utilization and transfer of hazardous waste the Company has set up accurate obvious and
eye-catching warning signs and signboards in accordance with the requirements of national standards and sorted hazardous
waste strictly according to its characteristics.· The Company has set up a special warehouse for the transfer of hazardous waste which is managed and monitored in real
time by specialized personnel. Hazardous waste at the end of its lifecycle is handed over to a qualified supplier for
decomposition and sorting every 7-10 days.· Records of hazardous waste treatment are kept properly to ensure that the quantities and types of hazardous waste treated
are consistent with those of hazardous waste actually generated and stored to promote the implementation of the zero waste
landfilling project.Indicator Unit 2023 2024 2025
Total weight of hazardous
MT 933.45 938.78 1044.87
waste disposed of
Total weight of nonhazardous
MT 1825.00 2204.71 1988.15
waste disposed of
Case Nantong Topband and Topband Vietnam carried out training on hazardous waste management
Nantong Topband continued to carry out special Topband Vietnam incorporates environmental
training on hazardous waste management explaining training into its employee growth system implementing
hazardous waste classification compliance disposal regular EHS training and annual refresher training
processes and environmental risks systematically covering waste classification chemical safety
improving the professional operation capability and emergency response etc. to ensure that all employees
subject responsibility awareness of relevant personnel master the necessary environmental knowledge and
effectively and providing strong support for the operating regulations and promote the implementation of
standardized full-process management of hazardous environmental management requirements in day-to-day
waste. work.38
1.4.2 Management of chemicals
Topband strictly complies with the Regulations on the Safety Management of Hazardous Chemicals the Regulations on
the Management of Monitored Chemicals and relevant laws and regulations in the location of the plant and has established a
comprehensive chemical management system covering the entire process from procurement storage and use to disposal. The
Company has established regulations such as the Chemical Management System the Chemical Introduction and Management
Standard and the Hazardous Chemical Safety Management Procedure to ensure the standardization of chemical safety
management. During the Reporting Period the Company achieved the goal of zero chemical leakage accidents.In 2025 on the basis of continuously improving the institutional framework the Company focused on strengthening risk
control in key aspects. Huizhou Topband implemented a strict approval process for purchased high polluting chemicals
requiring multiple approvals from department heads managers and safety management personnel and strengthening control
from the source. In addition each base of the Company has set up leak-proof tanks at chemical warehouses and fully
implemented secondary container storage improving leakage resistance significantly. Each business unit generally
implements a chemical receiving registration system requiring precise receiving based on the actual demand of the work
order and specifies that the amount stored on site shall not exceed the amount for one full day reducing the risk of onsite
storage effectively.The Company standardizes the full-lifecycle management of chemicals continuously eliminates the risk of chemical
leakage and reduces potential impacts on the environment and safety by implementing the above refined measures. In the
meantime the Company actively applies chemical recycling technology to promote the recycling of solvents save solvent
resources and reduce the potential environmental impact of solvent emissions. For example the Company has adopted
advanced solvent evaporation liquid cooling recovery technology to achieve the efficient recovery of NMP solvents and keep
the recovery rate of anode slurry solvents stable at over 90%.Management stage Specific measures
Purchase · All departments shall try to replace hazardous chemicals with non-hazardous chemicals in production processes
or daily use;
· All containers of hazardous chemicals entering the Company shall be labeled with the name of hazardous
chemicals contained potential hazards etc. The label text must be easy-to-understand symbols or text and signs
of hazardous materials or fire prevention shall not be blocked.Storage · Hazardous chemicals must be stored in special warehouses special places or special storage cabinets and
managed by specially assigned personnel and provided with fire and lightning protection facilities as required;
· Hazardous chemicals in large quantities or with a long period of storage must be placed in hazardous chemical
warehouses. Departments may store small quantities of hazardous chemicals in temporary warehouses but the
storage volume must not exceed three days' usage;
· Cofferdam facilities are set up in the chemical storage tank area and a special pollutant discharge pool is
installed in the hazardous chemical warehouse to ensure that chemical reagents leaking during storage can be
effectively intercepted and centrally collected to prevent outflowing and pollution.Use · Chemicals are collected by the material clerk from the Company's chemical station according to actual
production needs and stored in the workshop's chemical warehouse. The production line actually receives
chemicals based on the work order usage and completes warehouse-in and warehouse-out registration;
· Emergency flushing equipment is installed in all places where hazardous chemicals are used and showers are
installed in areas where corrosive and toxic chemicals are used;
· Used waste shall not be dumped at will but be properly stored in special containers and recovered by designated
partners.Emergency · An emergency drill for hazardous chemical leakage is conducted once a year to enhance employees' emergency
response response skills in the event of emergency leakage of hazardous chemicals;
· Operators are regularly trained and assessed to ensure that they have necessary safety knowledge and skills;
· Emergency response plans for work safety accidents are established including on-site disposal plans for
hazardous chemical leakage accidents;
· Regular safety inspections and assessments are conducted at chemical storage and use sites to timely identify and
eliminate safety risks;
· Safety protection articles and facilities such as protective gloves protective masks leak-proof tanks and
eyewash stations are provided to build a strong safety defense line comprehensively.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 39
1.4.3 Management of noise pollution
Topband strictly adheres to relevant standards such as the Emission Standard for Industrial Enterprises Noise at
Boundary (GB12348-2008) has formulated internal management systems such as the Measures for Management of Noise
Control the Control and Management Guidelines for Wastewater Discharge Exhaust Emissions and Noise and the Control
Procedure for Environmental and Safe Operation and has set management objectives for the up-to-standard discharge of
noise at the boundary to effectively prevent noise pollution. In 2025 the Company achieved the goal of meeting the Class 3
standard in the Emission Standard for Industrial Enterprises Noise at Boundary: ≤65 dB in the daytime and ≤55 dB at night.The Company made reasonable arrangements for noise pollution sources and took effective isolation anti-vibration and
noise reduction measures for key noise sources. We gave priority to installing sound insulation devices in workstations with
high noise levels. For example ultrasonic welding machines were provided with a semi-closed soundproof housing and
sound-absorbing cotton was installed inside the soundproof housing to further reduce noise transmission. In addition the
Company distributed noise-proof headphones to all employees working in nosy environments and urged their wearing to
protect their hearing health practically.The Company has formulated an annual noise testing plan and conducts noise testing quarterly to ensure that test values
are within the standard range. In addition the Company regularly hires external third-party testing agencies with nationally
recognized qualifications to conduct noise monitoring every year to ensure that factory boundary noise complies with the
standard.
1.4.4 Ecological protection and biodiversity
Topband recognizes that a healthy ecosystem is the foundation of sustainable development for an enterprise. The
Company strictly adheres to relevant national laws and regulations and gradually integrates the concept of ecological
protection into environmental management practices.The Company attaches great importance to the ecological rationality of project site selection. After systematic screening
and confirmation all existing production and operation sites including those in Nantong and Vietnam are not located within
or in vicinity to "ecological protection redlines" "nature reserves" or "key ecological function zones" designated by the state
or local governments. In the site selection evaluation of new projects the Company also considers ecological sensitivity as a
key factor and avoids ecologically fragile areas actively to reduce potential biodiversity impact risks from the source.We actively implement ecological protection and restoration actions within our capabilities around our production and
business premises and are committed to creating a greener working environment. Nantong Topband carries out large-scale
landscaping in the park plants native plants and ensures that all production and domestic wastewater is treated up to standard
before discharge reducing the load on the surrounding water environment. Through internal promotion and advocacy
Topband Vietnam continues to communicate the concept of "protecting the environment and caring for the factory area" to its
employees enhancing their awareness of ecological protection. In addition each park continues to strengthen strict control
over pollutants (wastewater exhaust gas and waste) to ensure the effective operation of environmental protection facilities
and minimize the indirect impact of operations on local biodiversity.In the future the Company will continue to deepen its biodiversity conservation measures further explore the path of
evaluating its own operations' dependence and impact on nature systematically and incorporate biodiversity conservation into
the Company's long-term sustainable development strategy and management practices at deeper levels gradually.40
1.5 Promoting the Circular Economy
Under the state's strategic guidance of vigorously promoting the development of the circular economy Topband actively
practices the concept of green development and integrates resource recycling throughout the lifecycle of product design
production packaging and recycling. The Company adheres to the principle of "reduction reuse and recycling" and takes
measures such as continuously improving product design and development using ecofriendly materials and promoting
packaging improvement actions to reduce environmental pollution improve resource utilization efficiency and help achieve
the national green transformation goal during the 15th Five-Year Plan period comprehensively.
1.5.1 Green design
To reduce resource waste and environmental pollution from the source Topband has formulated a series of internal
documents such as the Design and Development Management Control Procedure the Packaging Design Specification
Management Control Document and the Microelectronics Scrapping Management System and established a cross-
departmental development team that includes environmental protection specialists. The Company has established an
environmental and safety control process that covers the whole design process. From the time of requirement collection
relevant regulatory requirements are broken down into specific design stages such as products processes and packaging
gradually.In the product design stage the Company incorporates the green concept as a core consideration. The Company has
improved the charging and discharging efficiency and service life of its products significantly by introducing an efficient
battery management system thereby extending the service life and reducing unnecessary replacement and resource losses. In
the material selection stage the Company strictly adheres to the environmental protection orientation prioritizes the use of
nontoxic recyclable or biodegradable materials and resolutely refrains from using materials containing hazardous substances.In addition the Company actively promotes resource recycling by recovering effective materials from waste lithium-ion
batteries and using them for the manufacturing of recycled lithium products thereby continuously improving the
comprehensive utilization rate of resources and effectively reducing the dependence on primary minerals.
1.5.2 Green production
The Company comprehensively promotes the green transformation of the production process through technological
innovation and management improvement. Guided by environmental protection and energy conservation the Company
integrates multiple dimensions such as product realization customer demand capacity configuration quality requirements
and cost control into production process design systematically and selects lower-carbon production processes scientifically.For example for products with fewer solder joints efficient and energy-saving processes such as collision welding and laser
welding are preferred to replace conventional wave soldering reducing energy consumption and pollutant emissions
effectively.In the meantime the Company has established a complete product development stage review mechanism and conducts
rigorous assessment at every critical node to ensure that all standards are fully implemented. In manufacturing process control
it focuses on environmental impacts of high-risk processes and implements precise monitoring. For example in the wave
soldering process by regularly conducting weekly solder composition testing and having process inspectors verify results on
site the Company ensures continuous compliance with environmental regulations and the environmental friendliness of the
entire production process.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 41
1.5.3 Green packaging
The Company integrates the sustainability concept into its packaging strategy defines the environmental standards for
packaging materials in the packaging design specification management control documents prioritizes low environmental
impact materials that comply with RoHS REACH and other requirements and reduces the use of packaging materials based
on the principle of maximizing space utilization. The Company communicates with customers on using recyclable and
sustainable packaging methods for shipment such as vacuum formed materials and recyclable turnover boxes. During the
Reporting Period the Company further promoted packaging transformation reduced the proportion of vacuum formed
packaging gradually increased the proportion of easily recyclable materials such as cardboard boxes and implemented a
recycling plan for turnover boxes for customers in the Pearl River Delta and other regions.
1.5.4 Waste recycling
The Company pays attention to end-of-life environmental impact management covering key aspects such as product
recycling and disposal. The Company collects solid waste such as copper foil separately and hands it over to qualified
agencies for standardized recovery and disposal ensuring the efficient reuse of resources and environmental safety. In 2025
Nantong Topband recycled 140.6 tons of productive waste achieving full recycling and monetization; 623 tons of NMP
waste liquid were all recovered by OEMs and deducted from the cost of raw material purchase forming a closed management
loop.In terms of overseas business the Company also adheres to the principle of being responsible for the entire product
lifecycle and actively performs its environmental responsibilities. In 2025 Topband Romania set targets for packaging waste
recycling rates in compliance with local laws including 75% for paper and cardboards 50% for plastics and 25% for timber
all of which were complied with; Topband Vietnam also actively responded to local environmental policies implemented
measures to save office resources including double-sided printing and the use of recycled paper and achieved the target of
100% waste disposal by conforming recyclers.42
Innovation-oriented Development and Value
Co-creation by Employees
Innovation leadership and value co-creation by employee are the long-term value pursuit
adhered to by Topband. Topband is deeply engaged in product R&D and technological innovation
adheres strictly to quality and safety standards improves service quality continuously and builds
a responsible supply chain system actively. Meanwhile the Company always protects the lawful
rights and interests and occupational health and safety of employees and participates actively in
community building. In the process of innovation and development and social responsibility
practice the Company works and grows with employees.No poverty Good health and High-quality Decent work and Industry Responsible
well-being education Gender equity
Reduction of
economic growth innovation and inequalities consumption and
infrastructure productionPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 43
2.1 Innovative Quality Services
Topband adheres to the core orientation of innovative quality service promotes product R&D and technological
innovation continuously strictly adheres to the bottom line of product quality and safety improves the service level
continuously and supports high-quality business development in an innovation-driven quality-supported and service-
empowered approach.
2.1.1 Product development and innovation
Topband has always regarded R&D digitization as the core engine for corporate innovation and efficiency improvement
which has become an important breakthrough in promoting strategic implementation. To support sustainable and healthy
development and improve operational efficiency and the management systems we have launched the digital R&D project
which is oriented to "personnel efficiency improvement" and based on "all-staff collaboration" to reconstruct the innovation
paradigm and R&D ecology comprehensively.· Innovation and R&D strategy
The Company has established an integrated R&D architecture that covers basic research application development and
frontier exploration. We have established a number of specialized research departments to tap innovation potential
continuously based on our interdisciplinary collaboration platform. To ensure the effective implementation of digital R&D
the Company has defined three core guidelines and four core actions that unify the understanding and action direction of all
employees thereby creating a more agile efficient and competitive R&D system together.The business
Value- head is the
centered first
responsible
person.The R&D process is closely integrated
with the business reality; project Clearly define the digital KPIs for each
effectiveness is tracked in real time for R&D area and incorporate
timely adjustment and optimization. transformation results into the
assessment system for business heads.All-staff
participation
Establish a cross-departmental
digitalization tackling team to form a
dual wheel drive of "top-down +
bottom-up".Four core actions
Standardization Digitization Tool efficiency improvement Data interconnection
Promoting the standardization of Build a "technological Provide the R&D team with Share the four core data streams
R&D processes and the knowledge base matrix" that intelligent equipment through and build an integrated data
unification of data standards covers multiple types of the dual paths of "introducing AI network of "business – R&D –
knowledge bases such as programming tools + optimizing supply chain – production".component encapsulation bases the depth of existing tools".and standard circuit module
High-quality
educabtiaonses and transforms experience
into shared digital resources44
· Innovation and R&D system
In terms of R&D management system building the Company has implemented the IPD (integrated product development)
model and established a customer-oriented product development framework. By deeply integrating demand insights process
optimization and integrated development the Company has created an agile and efficient collaborative innovation system
enhancing product innovation capabilities market adaptability and commercialization efficiency significantly.In order to continuously improve R&D efficiency the Company has established management standards that run through
the whole product lifecycle covering all aspects from product planning and project execution to testing verification and
achievement transformation. In addition the Company will establish a digital contribution incentive mechanism giving
priority to employees and officers who actively contribute and create significant value in process optimization tool
improvement and knowledge base building in job promotion and job level evaluation. By effectively implementing the
innovation and R&D system we have aroused the enthusiasm of employees in making breakthroughs and pursuing
innovation effectively and developed an organizational culture of open collaboration and all-staff innovation gradually.Front office-Middle office-Back office Three-level R&D Organization Structure
A closely coordinated "iron triangle" is formed by managers with solution responsibility (SR)
Front office accountant responsibility (AR) and fulfillment responsibility (FR) of each business unit (BU) to
directly contact the market and customers.Composed of R&D centers of each business group (BG) to provide specialized product and technical
Middle office
platforms.Composed of the central research institute to make preparatory development and reserves for
Back office common and core technologies required by future products and markets according to the strategies
and product planning of the Company BGs and BUs.Indicator Unit 2025
R&D personnel Person 2138
Proportion of R&D personnel % 16.19
R&D investment RMB hundred million 10.47
Proportion of R&D input % 9.45Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 45
· Building an industry ecosystem together
Topband continues to share its technological and practical achievements with external stakeholders and participates
actively in the formulation and promotion of industry standards. In the meantime the Company contacts external innovation
forces extensively and carries out deep strategic cooperation with universities research institutions and industry partners to
build a collaborative innovation system featuring deep industry-academia-research-application integration jointly.Topband appointment/membership
Industry technical organizations/associations
qualification
National Technical Committee for Standardization on Home Automatic
Member
Controllers
National Standards Subcommittee for Electromagnetic Compatibility of
Household Appliances Electric Tools Lighting Equipment and Electrical Toys Member
National Technical Committee for Standardization on Radio Interference
Industrial Electrical Appliance Branch of the China Electrical Equipment
Vice Chairman
Industry Association
KNX Association USB-IF Wi-Fi Alliance WPC (Wireless Power Consortium)
CSA (Connectivity Standards Alliance) and Bluetooth Technology Special Member
Interest Group
In 2025 Topband participated in the drafting of
Commercial Intelligent Stir-frying Machine (GB/T46718-
2026) contributing key strength to guiding the standardized
development of the industry. During the Reporting Period
the Company promoted the official release of four standards
including two national standards one industry standard and
one group standard. In terms of standard review and
discussion the Company attended 10 online and offline
standard review meetings during the Reporting Period in
total including 3 group standard review meetings and 7
national standard review meetings. Plaque of National Standard Drafting Unit
Meanwhile the Company has conducted in-depth technical exchange activities with professor teams from multiple
universities in core technology fields such as new energy product and material R&D and intelligent control of high-power
energy equipment with focus on breakthroughs in key technological bottlenecks and the practical application of scientific
research achievements accurately exploring points of alignment in university-enterprise cooperation.University-enterprise cooperation projects in 2025
The joint development achievement in control performance with Jinan University won the IEEE Power Electronics
Award at the APEC (Applied Power Electronics Conference) held in the U.S. in March 2026.The Company implemented the project "Study on Estimation of SOX for Multi-time-scale Energy Storage on the
Grid Generation Side" implemented in cooperation with Harbin Institute of Technology.The Company cooperated with Huizhou University in the project "Design of a 12KW Electromagnetic Induction
Heating Module".The Company cooperated with Hunan University in the entrusted cooperation project "Electric Forklift Motor
Controller for Non-road Transport".46
In the field of humanoid robot dexterous hands the Company has established cooperative relationships with many well-
known universities in China around technological research progress application scenarios and product planning laying a
solid foundation for subsequent university-enterprise cooperation in joint technology development and research achievement
transformation and promoting the innovation and industrialization of dexterous hand technology.· Important innovation achievements
In 2025 Topband continued to accumulate experience in "four electrics and one network" (battery power source
electric control motor IoT) technology with focus on core fields such as intelligent control technology and energy
management and established a core technology matrix covering motor control power conversion energy storage
management AI etc.On the product side the Company accelerated the R&D and iteration of core products such as automotive-grade motors
server power sources and liquid-cooled control systems consolidating its technological platform and market competitiveness.Case Accelerating the innovation and market application of the Company's automotive-grade motor products
With the rapid development of intelligent driving and the increasing demand the Company completes the R&D
of the new-generation rotating mirror LiDAR motor with excellent market competitiveness in collaboration with
customers. On the premise of strictly ensuring high precision high reliability and fast response the Company has
effectively reduced the product volume and manufacturing cost through the deep optimization of the structural
design while establishing significant leadership in core technical parameters such as NVH. The Company's first-
generation LiDAR motor has been in mass production for two years with a sales volume of nearly 1 million in
2025. The Company continues to upgrade its second-generation product while developing its third-generation
product actively promoting overall growth and breakthroughs in its automotive business.Case Strengthening the intelligent control platform for power supply and innovating server power solutions
The Company is building a unified standardized digital power technology development platform in the field of
digital power supply fully supporting the R&D innovation and industrialization of medium- to high-power power
supply products. The Company conducts systematic research and optimization on digital control for various
advanced topologies such as bridge-free PFC three-phase Vienna PFC LLC resonance phase-shifting full bridge
full-wave rectification/bridge rectification and bidirectional inverters and develops an intelligent control platform
based on high-performance digital signal processors (DSP/high-speed ARM) to deeply master the core of digital
control algorithms. This innovative solution enables the development and implementation of next-generation power
products with high efficiency high power density high reliability and high intelligence providing underlying
technical support for the Company's business expansion in core fields such as new energy industrial control
datacenters and vehicle power sources.In the field of server power supply we have launched efficient server power solutions for AI datacenter
scenarios based on our profound expertise in digital power control and power electronics topology. The relevant
products have a wide voltage input range an excellent dynamic response capability and a comprehensive protection
mechanism which can stably support the power supply demand of high-density computing devices such as GPU
clusters and help customers build high-efficiency and highly reliable AI infrastructure.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 47
Case R&D of intelligent control systems for high-density computing infrastructure liquid-cooled system
Through research on the evolution of AI server power liquid-cooled product penetration rate and PUE policy
trends the Company has identified high-precision intelligent control as a key weakness completed a globally
leading manufacturer technology roadmap and patent benchmarking actively and identified three major fields:
model predictive control AI energy efficiency optimization and high reliability architectures. The Company has
established a three-step path of "dedicated hardware platforms – core control algorithms – reliability verification"
and identified the "software-defined control and hardware-realized definitive response" solution. Meanwhile the
Company is building technological barriers in the field of datacenter temperature control to reduce dependence on
imports support the independent controllability and green upgrading of computing infrastructure achieve key
breakthroughs in precision thermal management and enter the rapidly growing green computing infrastructure
market.On the manufacturing side the Company promotes the innovation and application of intelligent manufacturing
technologies such as AI visual inspection improving production efficiency and the quality control level.Case The transition of quality inspection toward intelligence enabled by AI visual inspection
In order to improve the efficiency of key quality inspections in the manufacturing process the Company has
built a universal inspection technology platform based on AI vision technology deep learning and CV algorithms
and completed the integration and debugging of core algorithms and kept building and enhancing the algorithm
library. The first-batch prototypes have been deployed on the production line and tasks such as the automatic
detection of solder joint abnormalities and component abnormalities have been undertaken achieving the expected
recognition accuracy and processing efficiency levels. The platform is able to replicate and promote scenarios such
as smart home appliance and power tool assembly lines new energy complete machines and component testing
lines. This transition toward intelligence will significantly enhance the Company's technological capabilities in the
fields of AI vision and industrial intelligent detection consolidate the Company's intelligent manufacturing
capabilities in segments such as electronic assembly smart home appliances digital energy and robotics and
achieve cost reduction and efficiency improvement on the technical level.48
2.1.2 Protection of intellectual property rights
With technological innovation being the core driving force Topband has established a comprehensive intellectual
property management system and a patent operation mechanism effectively promoting the transformation of technological
achievements and enhancing product competitiveness and providing support for business security. The Company has
achieved the full-process digital management of intellectual property rights through a patent management platform covering
the whole cycle from application examination and authorization to maintenance ensuring process traceability and
information transparency. This platform supports efficient collaboration and real-time coordination between companies and
external agencies and facilitates inventors to view progress and handle affairs at any time significantly improving the
efficiency of patent application.The Company has established a three-level risk control mechanism of "prevention – monitoring – response" for new
products to ensure business compliance and safety comprehensively. During the new product approval stage the Company
identifies potential infringement risks through patent searches and develops avoidance or response plans in collaboration
with the R&D team effectively reducing the risk of patent litigation. Meanwhile the Company strengthens the special review
of intellectual property clauses in contracts to prevent and control related performance risks from the source. In addition the
Company provides training on topics such as preparing patent disclosure documents and avoiding patent infringement risks to
business departments promoting the improvement of employees' intellectual property protection level.Topband promotes the closed-loop management of patents from layout to profitability closely around the Company's
strategies and market demand. The Company continues to improve systems such as the Patent Benefit Management System
and the Patent Rights Maintenance Management System and carries out patent mining deployment and achievement
transformation systematically. In 2025 the Company revised the scope of application of the systems personnel
responsibilities achievements ineligible for patent application patent grades patent quality and patent valuation instructions
to establish a more effective intellectual property protection management system.In the meantime the Company regularly conducts in-depth analysis of industry trends pushes industry-related patent
information and dynamics to the R&D department conducts patent technology analysis based on well-defined needs forms
special analysis reports and provides professional advice for technological innovation. During the Reporting Period the
Company was not involved in any patent infringement lawsuit.
2025
Patents for
Type Utility models Appearance patents Total
invention
New applications 81 124 50 255
Cumulative patent applications 1351 1961 492 3804
Newly licensed patents 97 108 72 277
Cumulative valid patents 499 1606 379 2484
Valid foreign patents in the
///1
current year
Cumulative foreign valid
///28
patentsPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 49
2.1.3 Product quality and safety
Topband continues to improve its quality management system covering five core dimensions: quality risk control
quality improvement product safety product recalls and quality training. Meanwhile the Company verifies design process
and device quality based on professional laboratories ensuring product quality from the source.· Product quality management
The Company has formulated the Quality Manual to ensure the reliability of design and manufacturing throughout the
product lifecycle. In the development stage the Company comprehensively uses tools such as DFMEA (design failure mode
and effects analysis) DFM (design for manufacturability) simulation technology APQP/IPD (advanced product quality
planning/integrated product development) and PPAP (production part approval procedure) in combination with the staged
review and experience reuse mechanism to comprehensively identify and control quality risks.In the manufacturing process the Company's quality management covers the entire supply chain and production process.The Company selects qualified suppliers through the SQM (Supplier Quality Management) system and has professional IQC
(Incoming Quality Control) teams plan material inspection items in advance with advanced equipment to effectively evade
potential risks. In the production process personnel at many positions such as QE (quality engineer) IPQC (input process
quality control) OQC (outgoing quality control) and QA (quality assurance) cooperate to monitor the whole process of
manufacturing including process parameters process stability and finished product quality.At the system level multiple bases of the Company have been certified to multiple core management systems including
ISO 9001 IATF 16949 and QC 080000; besides Shenzhen Topband and Huizhou Topband have been certified to the ISO
13485 medical device quality management system.
Bases that have been certified to the ISO 9001 quality management system (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Ningbo Topband Certified
4 Nantong Topband Certified
5 Topband Vietnam Certified
6 Topband Romania Certified
7 Topband Mexico Certified
8 Topband India Certified50
Bases that have been certified to the IATF 16949 management system (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Ningbo Topband Certified
4 Topband Vietnam Certified
Bases that have been certified to the QC 080000 hazardous substance management system (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Topband Vietnam Certified
In terms of technical support both Shenzhen Topband and Huizhou Topband have passed CNAS (ISO 17025)
certification; the Company will continue to enhance the inspection and testing capabilities of the central laboratory and
improve the coverage of testing projects and the level of technical support.In terms of products the Company has passed multiple international certifications including UL CCC&CQC CSA and
ETL and the laboratory team has passed professional certifications for product XRF GC-MS ICP UV spectrophotometers
and IC ion chromatographs.In terms of environmental control the Company strictly complies with the RoHS and REACH regulations and discloses
components of its products to customers through the RoHS Declaration Form for Components and Raw Materials;
environmental engineers regularly collect annual effective environmental protection reports from suppliers and the IQC team
tests incoming materials with XRF testing equipment to ensure that materials are conforming before they are used for
production.· Quality risk management
To effectively manage quality risks the Company adopts the LECD evaluation standard to identify environmental
factors and hazardous substance risks in design and production and develops systems such as the Environmental Analysis
and Risk and Opportunity Control Procedure and the FMEA Control Procedure. In the meantime the Company has
established a quality assurance mechanism standardized the product development process through the APQP Management
Procedure and formulated the Internal Review Management Procedure and the Management Review Control Procedure for
ongoing supervision and review to ensure the effective operation of the quality management system. In addition according to
the provisions of the Quality Manual the Company continuously tracks the achievement of quality objectives through
monthly quality meetings internal audits and management audits.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 51
Quality risk control methods
Fully identify product and process design risks using DFMEA and PFMEA; regularly update the risk database.Control quality risks using flowchart PFMEA QCP and SOP.Update the risk and opportunity assessment and response planning form annually.Establish the Nonconforming Product Control Procedure the Emergency Plan for Work Safety Accidents and Risk
and Opportunity Assessment Response Planning Form.The Company has developed the Emergency Plan Management Procedure and the Business Continuity Management
Procedure to enhance its ability to respond to emergencies and minimize potential losses.Emergency Management Flowchart
Identifying accidents and Formulating
emergencies corresponding preventive
Implementing
measures/emergency Review preventive
response plans measures
Regular drills and
reviews
The Company focuses on improving quality and continues to drive improvement through technological innovation. The
R&D center and the manufacturing center have established a "Technology Innovation Group" and a "Process Pre Research
Group" respectively to jointly explore the forefront of products and processes. Based on business plans and strategic plans
(BP&SP) the Company identified 658 improvement opportunities in total through process audits and promoted closed-loop
optimization in accordance with the Continuous Improvement Control Procedure in 2025.Continuous Improvement Flowchart
Collecting continuous Formulating Implementing Verifying the
improvement continuous continuous effectiveness of Keeping records
information improvement improvement continuous
plans plans improvement
End52
· Ensuring product safety
Topband regards product safety as one of its core responsibilities and integrates user health environmental protection
and social trust into the entire product process and builds a comprehensive protection system through system design
dynamic monitoring and emergency response. To ensure regulatory compliance the Company has established a dynamic
compliance system covering the global market and continuously tracks target market standards. Its products have passed
authoritative certifications such as CE and UL.For the product design and development stage the Company has established a multi-level reliability assurance
mechanism. First the Company takes high temperature resistant corrosion resistant and anti-aging materials as the selection
standard for key components to ensure the basic stability of products in extreme environments. Second the Company breaks
down complex systems through modular topology architecture design isolating fault risks structurally and improving
maintainability. Finally for high-load scenarios the Company innovatively applies multi-layer heat dissipation structures and
strictly limits the temperature rise of equipment during long-term operation to a safe threshold.Before a product is launched the Company conducts systematic verification through a three-level testing system
covering electrical performance environmental adaptability and durability. Electrical safety testing checks key indicators
such as insulation resistance and withstand voltage strength strictly to ensure compliance with domestic and international
standards; environmental adaptability testing simulates extreme conditions such as high and low temperatures and humidity
to verify the scenario stability of the product; long-term reliability testing ensures product safety and reliability of throughout
the lifecycle using methods such as full-load aging.At the operational monitoring level the Company has integrated an intelligent safety monitoring system for its products
which can monitor key parameters such as voltage current and temperature in real time to ensure that operational
abnormalities can be quickly identified. The product is provided with multiple built-in hardware protection mechanisms such
as overvoltage overcurrent short circuit overheating and leakage which can automatically resist common faults. To reduce
operational risks the Company has also reduced user error rates effectively by providing detailed user manuals.· Product recall mechanism
For potential defective products the Company has formulated the Product Recall Control Procedure and established a
hierarchical recall management system. The system clearly defines two types of recalls: First-level recalls apply to products
that violate regulations or may cause serious personal injuries; second-level recalls are used to address non-safety
performance defects. When there is a potential quality risk in a delivered product such as customer complaint verification
internal discovery of any non-conforming batch or regulatory update the Company will initiate the recall procedure
immediately.To recall a product the root cause of the defect shall be analyzed and corrective actions shall be developed which shall
be reported to internal and external stakeholders. All recalled products must be labeled and isolated and repaired scrapped or
destroyed in accordance with the Nonconforming Product Control Procedure under the supervision of the Quality Department.In addition the Company will simultaneously screen products of the same type to eliminate potential risks and continuously
optimize the early warning mechanism to ensure safety and controllability during the product lifecycle. In 2025 the Company
did not experience any major safety and quality liability accident related to its products.· Quality culture
The Company implements hierarchical quality training and electronic process monitoring to continuously consolidate
the talent foundation and ensure regulatory compliance. The Company holds a quality activity month every year which
strengthens the quality awareness of all employees through case sharing competitions and other forms providing solid
support for the high-quality delivery of products. In 2025 the Company achieved 100% full coverage of quality training for
employees in all business units.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 53
Quality Month Activity Kick-off
Case Sharing Activity Visual Inspection Training
Meeting
· Product quality objectives
In 2025 each business unit of the Company formulated differentiated product quality objectives around its core business
directions. By establishing a key performance indicator system covering market analysis design and development product
manufacturing and implementing monthly quarterly and annual statistics the Company achieved effective control over
process performance. For nonconforming items relevant departments promptly carried out tracking analysis and
improvement to ensure closed-loop problem solving.During the Reporting Period multiple quality objectives were achieved successfully. Among them the external audit
approval rate reached 100% and there was no major quality accident throughout the year. The Company achieved the
expected targets in terms of product pass-through rate customer complaint rate customer return rate external failure cost
and quality accident frequency around the manufacturing process and product shipment process.
2.1.4 High-quality services
Topband has established a customer-oriented full-cycle service management system which integrates efficient service
response customized technical solutions and intelligent operation and maintenance tools deeply participates in the customer
value creation process and consolidates long-term cooperation barriers through professional delivery.In achieving quality performance goals in 2025 the Company implemented differentiated and precise targeted
management for core quality indicators such as customer complaint frequency product batch return rate customer PPM and
OQC sampling defect rate based on the business characteristics of different business units in order to minimize the impact on
customers and maximize satisfaction. During the Reporting Period 100% of the above indicators met the established targets.This achievement not only validates the effectiveness of the Company's quality management system but also effectively
supports the steady implementation of the Company's "customer intimacy" development strategy.· Service system and transparent communication
Topband regards customer needs as the strategic core of its business and has established a service support system
covering the entire process from product design to market withdrawal on this basis. Based on the core technology matrix of
the "four electrics and one network" (electric control motor battery power source and IoT platform) the Company provides
deep customized solutions for multiple industries such as tools and home appliances digital energy intelligent vehicles and
robots. Through process standardization team specialization and service model innovation the Company is committed to
continuously improving customer satisfaction and building long-term stable cooperative relationships. In 2025 the Company
further improved its customer service management system by refining its customer service processes.54
In terms of product information transparency the Company is committed to providing customers with comprehensive
and clear explanations to assist them in making responsible purchase decisions.Types of information Specific measures
Procurement and impact of · A complete machine product comes with an instruction manual that explains the
product materials materials of the product.· Product materials are disclosed to customers through the RoHS Declaration Form of
Components and Raw Materials.Safe use of products · Corresponding specifications are formulated for different product types including
storage transportation and safety requirements.Impacts during product disposal · Corresponding user manuals are formulated for different product types including
suggestions for product waste disposal.· Aftersales service management
In terms of service concept and practice the Company has established a closed-loop management system from
acceptance and handling to recurrence prevention with the Customer Complaint Handling Procedure being the core. Routine
communication between the Company and customers comprehensively covers routine matters such as products contracts
and change management and the closed-loop improvement of problems is promoted based on tools such as the 8D analysis
report.For the key nodes such as customer property management and urgent requirements the Company has developed
standardized operating procedures to ensure transparent services. Complaints are classified into three levels based on severity:
ordinary serious and extraordinarily serious. The timing commitment of "responding to customers within 4 hours
responding to temporary measures within 1 working day and responding to improvement reports within 3 working days" is
strictly implemented where accurate countermeasures complete loss stop and whole-process feedback are ensured.Types of customer complaints Deadline for providing emergency measures
General complaints 8H
Serious complaints 4H
Extraordinarily serious complaints 2HPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 55
· Technology-driven service upgrading
The Company is driving service upgrading with technology aiming to reduce customer problems from the source. In the
field of energy storage lithium batteries by developing high stability products and combining them with systematic
verification such as failure analysis product reliability is improved comprehensively. In the meantime the Company
regularly conducts customer training to empower them to improve their use efficiency. In terms of service model the
Company creates differentiated advantages through "rapid response resource customization and technological
empowerment".Differentiated service advantages Specific scope
Quick response Dedicated managers are appointed for strategic customers to ensure the seamless
coordination of requirements.Resource customization By utilizing remote monitoring technology the real-time tracking and risk prediction of
the operating status of energy storage systems can be achieved transforming passive
response into active maintenance
Technology empowerment The Company breaks standardization boundaries and provides customers with end-to-
end customized solutions from product adaptation to energy management helping
customers achieve cost reduction and efficiency improvement.· Customer satisfaction management
The Company regards customer satisfaction as a key measure of service quality and corporate reputation and has
established a comprehensive monitoring analysis and improvement system that runs through the entire business process. On
the management execution level the Company has established a cross-departmental collaboration system: the Strategy
Department and the Marketing Center are responsible for coordinating the overall customer satisfaction survey establishing a
scientific evaluation model and outputting multidimensional quantitative analysis reports; each business unit carries out
closed-loop management based on research results and deeply tracing and root cause analysis for customer feedback on
product quality service experience and other aspects accurately identifying business strengths and areas for improvement.In 2025 the Company collected 406 valid copies of the questionnaire from 186 customers and the overall customer
service satisfaction reached 90% during the Reporting Period. In the future the Company will continue to use customer core
concerns as the anchor point for its strategic development drive the continuous iteration and optimization of business
management through agile insights and achieve a comprehensive leap in customer service experiences.Product Aftersales Service
Shenzhen Hailei – Electrical Quality Pioneer Award for Huizhou Topband
Conformity Certificate56
2.2 Collaborative Supply Chain Ecology
Topband is committed to building a symbiotic and collaborative supply chain ecosystem with scientific management
systems being the cornerstone focusing on key aspects such as supplier admission risk assessment collaborative
development and orderly withdrawal and establishing a management system covering the entire lifecycle. By promoting
value co-creation and risk sharing the Company continues to enhance the stability and reliability of its supply chain
providing solid support for high-quality business development.
2.2.1 Supplier management system
Topband has established a scientific and standardized supplier management system and continuously promotes the
improvement of the supply chain in terms of environment society and governance. The Company coordinates functional
departments such as strategic procurement customs logistics business planning SQM and digital risk control with the
Integrated Supply Chain Center being its core achieving cross-departmental and cross-base resource integration and efficient
operation. To strengthen business collaboration the Company has also established a product line business partner (BP)
mechanism which enables it to penetrate into various product line business units (BUs) accurately identify business needs
and pain points and ensure that the supply chain system is both flexible and resilient.the Company established an SRM supplier management system as the digital core platform for the supply chain in order
to standardize supplier management processes and improve supply chain operational efficiency. This system realizes online
collaboration throughout the procurement process supplier lifecycle management and business finance integration
effectively supporting the Company's efficient procurement and supply chain control in business areas such as intelligent
control and new energy. The core functions of the system cover the full-lifecycle information management of supplier
admission registration filing assessment audit blacklist as well as key aspects such as order and delivery coordination and
quality abnormality tracking.Partner type Collaboration mechanism
Deeply explore the business environment of each product line gain insights into business needs and
Product line BPs
customer pain points and collaborate with various resources to support business development.Strategic Strengthen the collaboration between the Integrated Supply Chain Center and business departments
procurement BPs and establish effective cross-departmental connections and cooperation.Coordinate changes in customs policies and response methods with business departments in real time to
Customs BPs
ensure normal and healthy business operations.
2.2.2 Supplier admission
In the supplier admission process the Company has established a strict screening and grading mechanism based on the
Supplier Management Control Procedure. The Company's Procurement Department implements differentiated qualification
evaluation based on supplier categories and divides suppliers into the four levels of A B C and D based on quality system
scores. Qualified suppliers will be included in the list of compliant suppliers. In 2025 the Company further strengthened the
evaluation requirements for agents by introducing the agent self-evaluation form.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 57
For potential suppliers the Company requires them to complete the signing of core documents including the Quality
Assurance Agreement Anti-commercial Bribery Agreement Stakeholder Environmental and Occupational Health and Safety
Agreement Counter Terrorism Safety Agreement and Environmental Compliance Assurance Agreement in order to establish
joint responsibilities for quality delivery business ethics environmental protection and social responsibility from the
beginning of cooperation. In 2025 100% of the Company's official suppliers signed the Stakeholder Environmental and
Occupational Health and Safety Agreement and the ETI Basic Guidelines.Key issues Specific measures
Green · In the coding and project approval process the Company organizes environmental protection
procurement specialists to review environmental protection information provided by suppliers ensuring the
environmental compliance of materials from the source.· The Company sets environmental and social responsibility as a key audit module and any supplier
with a scoring rate of less than 80% will enter the rectification process directly; if the score is still lower
than the standard after rectification it will not be introduced by the Company.Labor rights · The Company undertakes to comply with international labor standards such as the prohibition of child
labor fair remuneration reasonable working hours and occupational health and safety.· Before an external supplier enters the Company's factory area to carry out operations it must first pass
qualification review by the Administration Department and complete exclusive environmental health
and safety (EHS) training before admission to the site for operations. The training covers core points
such as occupational health and safety precautions requirements of dangerous operation standards and
guidelines for the safe use of equipment and facilities.· During the Reporting Period the Company conducted safety training for 300 person-times from
external suppliers with 7 training sessions per month on average.Conflict minerals · The Company has formulated the Supplier Code of Conduct which explicitly prohibits the use of
conflict minerals and supervises its implementation through regular and surprise inspections.· The Company requires upstream suppliers to sign a commitment letter on not using conflict minerals
to avoid ethical and environmental risks in the supply chain and respond to international social
responsibility standards with practical actions.Indicator Unit 2025
Total number of suppliers (at the end of the Reporting Period) Nr. 1731
Number of suppliers in the Chinese mainland (at the end of the
Nr. 1532
Reporting Period)
Number of suppliers in Hong Kong Macao and overseas regions (at
Nr. 199
the end of the Reporting Period)
Total number of new suppliers Nr. 7758
2.2.3 Supplier evaluation and withdrawal
In face of cost and delivery risks that may be caused by market fluctuations policy adjustments and emergencies the
Company has established the abnormal material cost fluctuation risk response mechanism. This mechanism standardizes the
entire process from risk early warning and decision-making response to execution review in order to integrate the Company's
resources for collaborative response and minimize potential losses.To continuously improve supplier capabilities the Company has established a dynamic evaluation system. Each
business unit regularly quantifies suppliers in multiple dimensions such as quality delivery and service in accordance with
the Guidelines for Monthly Supplier Performance Assessment Scoring. Evaluation results are provided to the management in
real time through the data platform. The Company categorizes suppliers into the four levels of A B C and D according to
monthly performance evaluation results. Suppliers with excellent ratings will retain their strategic supplier qualifications and
be given priority in invitation to the annual bidding process; for suppliers rated as Level C or D consecutively the Company
will take control measures to reduce their procurement shares and lower their project preference levels.Meanwhile the Company organizes an on-spot audit of qualified suppliers across departments and teams on a yearly
basis and the audit is led by a supplier quality engineer (SQE) to check their management system technology level and
social responsibility practice together with procurement engineering and other professionals to promote the systematic
upgrading of suppliers. In addition the Company strictly implements supplier performance replacement management in
accordance with the Supplier Management Control Procedure and the Scoring Guidelines for Supplier Monthly Performance
Evaluation to ensure that the supply chain system remains competitive and vigorous.Indicator Unit 2025
Number of manufacturers that have conducted EIA Nr. 110
Number of manufacturers that have conducted SIA Nr. 110
Percentage of official manufacturers passing ISO 9001 certification % 100
2.2.4 Supplier collaboration and growth
Topband is committed to establishing long-term partnerships with suppliers through equal cooperation. The rights and
obligations of both parties are clearly defined in the Supply Support Agreement. While requiring suppliers to strictly perform
the agreement the Company commits to pay for goods in time as agreed and actively negotiate solutions for overstocked
products of suppliers for reasons attributed to it to practice fair and responsible procurement. Meanwhile the Company
launched the lower-tier supplier sustainable development performance (SSP) improvement project together with core
customers in 2025 to enhance suppliers' innovation capabilities in respect of products systems and services. During the
Reporting Period the Company achieved the annual target of a 100% signing rate of the Supply Support Agreement for
newly introduced target suppliers.In addition the Company implemented the Procurement Data Confidentiality Management Standard to protect the
security of suppliers' procurement data. To improve the transparency of the supply chain the Company further promoted the
information disclosure and credibility improvement of suppliers in ESG areas such as environmental protection and labor
through contract constraints regular disclosure and third-party audits.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 59
2.3 Employee Rights Protection
Employees are the most valuable asset and development cornerstone for the Company. Topband adheres to the principle
of putting people first. On the basis of effectively protecting the lawful rights and interests of employees and building a
diverse and equal workplace environment it continues to increase investment in talent development. Through systematic
training and career planning it empowers the growth of every employee and is committed to achieving the harmonious unity
of personal value and organizational development.
2.3.1 Employment rights and interests of employees
Topband adheres to the principle of lawful and compliant employment improves the remuneration policy system and
ensures the fair employment and labor remuneration rights of employees effectively.· Compliant employment
Topband strictly adheres to all applicable domestic and overseas
labor laws and regulations such as the Labor Law of the People's
Republic of China and the Labor Contract Law of the People's
Republic of China in its employment management ensuring
comprehensive compliance in all practices.The Company explicitly prohibits and resolutely eliminates any
form of forced labor child labor abuse and harassment and is
committed to maintaining a fair working environment that respects
human rights. The Company has specifically formulated documents
such as the Employee Recruitment Management System the Forced
Labor Management Procedure the Child Labor Prohibition Procedure
the Child Labor Relief Procedure and the Abuse and Harassment
Prohibition and Control Procedure to prevent and control relevant
risks and provide remedial paths for potential incidents.In order to avoid any mistaken employment of child labor from "Star Employer of the Year" Award at
the source the Company applies strict recruitment management OfferShow 2025
measures to identify ages of candidates by effective ways such as face
recognition and identity card information matching and ensure that
ages of all new employees are true and lawful. In the meantime the
Company has established reporting channels including audit
complaints and the employee experience platform to ensure the timely
handling of violations. In 2025 the Company further strengthened
human rights training for all employees and communicated its
policies and regulations on labor rights anti-discrimination etc. to all
employees including all newly hired employees to ensure that they
complied with relevant regulations in their work.The Company attaches great importance to the balanced distribution of talents in different regions and the proportion of
employees in Guangdong Province reached 30% in 2025 providing a solid talent base for future regional development of the
Company. The Company not only fully implements employee rights protection for regular positions but also absorbs
employment and expands flexible employment channels. During the Reporting Period the Company successfully rehired 20
retirees through the introduction of flexible employment policies such as reemployment of retirees demonstrating its
emphasis on the rights and interests of flexible employees through practical actions.60
Indicator Unit 2025
Total number of employees Person 13208
Number of employees by gender - Male Person 7616
Number of employees by gender - Female Person 5592
Percentage of male employees % 57.66
Percentage of female employees % 42.34
· Remuneration policy
In 2025 Topband continuously optimized the salary management system formulated and implemented the employee
salary management system implemented differentiated salary band division for positions based on value assessment built a
salary grade development channel directly linked to job qualifications and formed a dynamic salary mechanism of "different
salaries for the same position and changes in salary with changes in position". For salary determination the method of a
combination of performance and qualification certification was adopted a gradual salary adjustment strategy of "small steps
and fast progress" was implemented and on the premise of ensuring reasonable control over the total salary department
managers and the Human Resources Department jointly determined the salary adjustment plan.For overseas employees the Company has revised the salary welfare and holiday management measures further refined
the principles time and process for the payment of overseas allowances improved the home leave policy and clarified the
attendance management standards to protect the rights and interests of overseas employees. In addition the Company strictly
fulfills its responsibilities of paying employees' salaries and social security ensuring that all employees enjoy social insurance
protection and building a solid welfare foundation for employees.In terms of salary fairness and performance management the Company has established an internal salary benchmarking
system which compares industry salary levels through external salary reports and combines internal salary data analysis to
provide an objective basis for annual salary adjustment ensuring that salary levels are fair internally while being competitive
in the market. The performance management system focused on organizational strategic goals emphasized team
collaboration and personal development and ensured that individual performance is consistent with the Company's overall
goals.Indicator Unit 2025
Average pay gap between male and female employees
(Percentage of average total hourly pay of female employees in % 80.23
average total hourly pay of male employees)Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 61
· Employee care and communication
Topband is committed to building a multi-level and normalized employee communication system and continuously
listens to employee voices and respond to their concerns by combining online platforms with offline mechanisms. The
Company builds an online employee experience platform. In 2025 it collected 300 effective suggestions to promote
improvement and implementation; besides a new T community communication platform went live open to all domestic
employees with functions such as work exchange experience sharing and anonymous posting. In the future it will gradually
cover the overseas bases further promoting organizational communication and cultural integration. Offline the Company
held employee communication meetings monthly organized 4 centralized meetings throughout the year to promote the
resolution of 39 rights issues of concern to employees and conducted an annual special cultural atmosphere survey. In
addition the Company has established trade unions in Shenzhen and Huizhou and would communicate and negotiate with
the trade unions before making major decisions that involve the immediate interests of employees. Through the collaborative
operation of multiple channels the Company continues to enhance understanding and trust between the organization and
employees.Topband has developed five plans namely the Topband Ease Plan Topband Development Plan Topband Happiness
Plan Topband Love Plan and Topband Housing Plan to show solicitude for employees in all aspects of physical and mental
growth. The welfare system covers all scenarios to reduce worries of employees.Housed Going overseas
Housing provident fund/public To be charged
rental housing for talents/group Internal training/external
Overseas subsidy/free
Married housing purchase training/scholarship for
accommodation/family
Marriage leave academic upgrading/EAP leave/personal accidentactivities/interest-free home
Relaxing psychological counseling insurance/family visit subsidypurchase loans
Dining room/tea room/afternoon
tea/gym/dance studio/club/annual Falling ill
leave/tourism vacation/tourism Medical insurance/physical
allowance examination/paid sick
leave/love fund
Insurance
Unemployment
Full-scenario employee insurance/work-related injury
benefit system insurance/critical illness
insurance
Celebrating holidays Retired
Starting lucky money/statutory Participating in activities Endowment
holidays/holiday gifts/birthday Team building/recreational insurance/memorial gifts Having a baby
gifts
On-boarding and sports activities/festival
Maternity leave/paternity
leave/maternity
On-boarding gift bag/training activities/club activities/New insurance/amusement park for
and learning/tutoring/commuter Year's party kids/parent-child summer
bus/free accommodation/ fair- camp
price canteen/Shenzhen
household registration
Having a misfortune
Bereavement leave/EAP62
"Topband" Ease Plan "Topband" Growth Plan
● Social insurance and housing fund: endowment ● Internal cultivation: Different cultivation programs and
insurance medical insurance maternity insurance management modules are set up for different stages of
employment injury insurance unemployment insurance career including new employee management (new
and housing fund. recruits from school and society) professional skill
● Statutory holidays: annual leave marriage leave training (R&D sales supply chain...) management of
maternity leave/paternity leave sick leave funeral leave leaders of different levels.etc. ● External learning: For those in need of external
● Supplementary leave: paid travel leave. training all or part of the training expenses can be
● Daily welfare: free shuttle free dormitory cheap reimbursed.canteen welfare shop afternoon tea birthday cards and ● Scholarship for education promotion: Encourage
holiday gifts. internal personnel in continuous education promotion
● Overseas benefits: overseas subsidies home leave and give scholarships to those realize education
personal accident insurance and family visit subsidies. promotion.● Internal teaching reward: Build a complete internal
"Topband" Happiness Plan training course system and an excellent lecturer team and
● Interest associations: At present all bases have more give corresponding rewards to lecturers engaged in
than 30 interest associations. Rich activities can be development and teaching of courses.implemented for relaxation. ● Talent recommendation reward: Encourage on-the-job
● Employee activities: Monthly organize colorful employees and external personnel to introduce all kinds
cultural activities including fun sports game fitness and of talents to the Company and reward them upon
weight loss activities skill competition sports carnival recommendation.summer parent-child summer camp singing contest e-
sports competition engineer's day New Year party etc. "Topband" Love Plan
● Festival activities: including guessing lantern riddles at ● Periodic physical examination: Annually organize all
the Lantern Festival making Zongzi at the Dragon Boat employees to take physical examination to help
Festival garden party at the Mid-Autumn Festival employees to better manage their physical health.annual meeting at the Spring Festival etc. ● Psychological care for EAP employees: Full-time
● Annual tourism/group construction: Tourism funds and psychological counselors are assigned to provide free
group construction funds are provided. psychological counseling services for formal employees
● Recreational facilities: Free gym dance room and and their immediate family (parents children and
children's amusement park are provided for employees spouses) thus promoting physical and psychological
and activity venues such as basketball court badminton health and improve happiness. In 2025 the EAP Center
court ping pong room and billiard room are available. received a total of 417 employees and 469 immediate
family members (parents children and spouses) of
"Topband" Housing Plan employees for psychological counseling with a total
● Public rental housing for talents: The Company can counseling time of 559 hours. In addition 87
provide government-subsidized rental housing for talents psychological training sessions were organized for 2323
in Shenzhen for employees. employees to effectively implement the Company's care
● Household registration transfer: The Shenzhen for employees and reduce their psychological risks.Headquarter can provide household registration transfer ● Employee experience care: An employee experience
and registration services for eligible employees. platform is set up so that employees can put forward
suggestions and ideas and explore new demand for
software and hardware improvement.● Love fund: When employees or their immediate family
members encounter serious diseases accidents
emergencies etc. they can apply for the Company's love
fund to help over the difficulties. In 2025 the Company
appropriated RMB 620000 to the Love Fund in total
accounting for 56.14% of the annual income of the Love
Fund.● Family support: A 1-hour breastfeeding leave is offered
per day; mother and baby rooms are set up in the
Shenzhen and Huizhou industrial parks; employees are
allowed to bring their children to the workplace.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 63
Case Mental Health Month delivered care for employees' mental health
On World Mental Health Day in October 2025 the Company carried out a series of online and offline activities
with the theme of "Caring for the Heart" at EAP Heart Station including Mental Popular Science Corridor Mandala
Painting Emotion Management Workshop mental health knowledge Q&A lucky daily check-in and cultural group
theme activities to popularize mental health knowledge and help employees relieve emotions and release stress.The activities attracted nearly 1000 employees effectively conveying humanistic care and creating a positive and
warm workplace atmosphere that cares for employees' mental health."Caring for the Heart" Mental Popular Science Mandala "Healing by Painting" Emotion
Corridor Management Workshop
Topband is committed to building a
respectful inclusive working environment
with a sense of belonging and takes enhancing Cultural
employee happiness as one of its core goals. managementactivities
The Company continues to promote the
building of corporate culture in various
domestic bases and actively carries out cross-
cultural integration of overseas teams. In order
to enrich the leisure life of employees the Incentive Employer brand
Company has established 30 clubs internally ceremony activities
activities
covering multiple fields such as outdoor Cultural activity
system
sports ball games board games and language
learning. In 2025 the Company carried out 60
large-scale cultural and sports activities and
over 1000 small-scale activities in various
parks and bases in total effectively creating an Recreational
inclusive and upward organizational and sports Holiday welfareactivities
atmosphere enhancing employee cohesion activities
and promoting the integration and unity of
domestic and overseas cultures.64
Music Festival Traditional Chinese Medicine
Lantern Festival Activity
Light Healthcare Program
Case 2025 Topband Sports Carnival enhanced team cohesion
During August-October 2025 the Company held the 2025 Topband Sports Carnival. The carnival attracted 300
employees to participate in various sports activities such as basketball football table tennis badminton and outdoor
yoga. The event provided a platform for employees to show their talents and enhance communication effectively
promoting cross-departmental collaboration and team cohesion. The fighting spirit and love for sports demonstrated
by employees both inside and outside the arena vividly illustrated Topband's positive corporate culture.Badminton Game Football Match Table Tennis GamePracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 65
2.3.2 Diversity and equal opportunities
Topband adheres to the core principle of diversity equality and fair opportunities and fully integrates it into all aspects
of talent management. The Company has clearly stipulated through the Employee Recruitment Management System that in
all personnel practices such as recruitment employment and salary promotion no form of discrimination shall be made
against employees or potential applicants based on race skin color age gender sexual orientation gender identity and
performance ethnic group disability pregnancy religious belief political affiliation club membership military service
status protected genetic information or marital status. In 2025 the Company recruited and employed 15 disabled employees.In the meantime the Company values the growth and well-being of female employees. By regularly organizing
Women's Day activities and a series of special care the Company is committed to creating a more supportive growth
environment for female employees.In 2025 the Company conducted a cultural consistency survey on the domestic bases and a cultural integration survey
on the overseas bases. The survey results show that the cultural consistency score of the domestic bases is 90.2% the cultural
integration score of the overseas bases is 80.65% and the overall employee participation rate exceeds 30%.Topband Women's Day Activity – Huizhou Topband Topband Women's Day Activity – Topband Vietnam
"Timeless Sound" "Timeless Sound"
Topband 2025 Mother's Day Activity – Shenzhen Topband Topband 2025 Mother's Day Activity –
Topband Mexico66
2.3.3 Employee training and development
Topband adheres to the human resource management philosophy of "making individuals vigorous and organizations
always healthy" and achieves value co-creation and sharing between the Company and employees by paying attention to
employee demands providing development platforms and stimulating internal drive. In terms of talent appointment the
Company follows the principles of "respect tolerance openness equality competition and prioritization of the best"
emphasizes identifying individual growth potential and deeply explores true value needs of employees.Topband's Human Resource Management Philosophy
Give opportunities to employees Qualification and performance management Value co-creating and value sharing
promotion
Give priority to new growth opportunities Lead competency improvement through Achieve a win-win situation for both the
arising from internal promotions and qualifications and promote goal achievement Company and individuals.organizational changes; through performance evaluation;
Use people who identify with the Use "young" people boldly (in age
Company's values and emphasize and thinking/psychology (learning
their growth potential. ability)).Tap true value needs of people and
Pay more attention to competencies Topband's Employment provide platforms and opportunities.than to working age. Philosophy
Value professionals and tolerate Requirements for officers: being customer-centric
people with different personalities responsible accountable resilient results oriented
and stronger competencies. ambitious self-breakthrough and process-oriented
thinking
· Career development system
Topband has established systems such as the Qualification Management System and the Management Measures for the
Position Professional Title and Competency Level System which provide clear career development paths for employees to
stimulate their enthusiasm and creativity. In the meantime the Company has systematically optimized the talent selection
reservation and incentive system through the Topband Officer Management System the Grassroots Line Leader Training
System and Plan and the Innovation Incentive System. On this basis the Company continues to ensure the stability and
continuity of its talent echelon and strives to shape an officer team with a reasonable structure and matching competencies in
order to provide solid talent support.The Company's career development mechanism is centered around talent introduction and development aiming to
building an open dynamic and sustainable talent ecosystem.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 67
Talent Introduction
"532" talent introduction Using high-quality fresh Recruiting industry experts Combining external recruitment
strategy graduates and internal training
50% from excellent fresh Consolidating the talent Building talent competitiveness Reserving a talent team with
graduates 30% through internal foundation in multiple dimensions international competencies in
promotion and 20% from social advance
recruitment
Talent Development
361 talent structure strategy "1:1" officer succession strategy Establishing a reserve officer talent pool for
key positions
Continuously promoting team building and Encouraging the mobility of officers and Strengthening the reserve for core management
optimize internal talent distribution. providing data support for their promotion and positions through hierarchical and field-based
training based on a comprehensive evaluation reservation
of their qualities competencies and potential.In terms of setting up the employee position system the Company has established two major sequences – professionals
and officers. In 2025 the Company improved the qualification standards for all professional and officer positions and
optimized the qualification certification process. The professional sequence is divided into six job groups based on functions:
technology marketing function supply chain manufacturing and quality. Among them each group is divided into four
levels: A B C and D and each officer group is divided into 12 officer levels providing employees with a clear career
development ladder.Professional Sequence
Authoritative experts
Senior experts
Experts
Senior engineers
Engineers
Assistant engineers
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Management Sequence
Senior management
officers
Mid-level
management officers
Grassroots
management officers68
The Company has designed career development channels for employees on various positions in the qualification system
and defined competency standards for each level. Employees can actively apply for job qualification certification at any time
based on sound systems and processes to assess their professional level and use learning resources provided by the Company
to continuously improve their professional competencies by reference to knowledge and skill requirements required for
positions.Meanwhile according to the new provisions in 2025 the Company will implement a gradual delayed retirement system
for employees who have reached the statutory retirement age. One month before an employee's retirement the social security
specialist will provide a list send the retirement notice to the employee and coordinate with the department head to handle
the resignation and social security contribution suspension procedures.For some core backbone and expert personnel the Company may rehire them. In case of rehiring a one-year agreement
shall be signed which shall not exceed 3 years in principle (5 years for M5 senior executives) and the salary shall be based
on the actual salary level before retirement. The specific length of rehiring depends on the level: up to 1 year for M3
(supervisors/managers) up to 3 years for M4 (directors/BU heads etc.) and up to 5 years for M5 (senior executives). The
rehiring period for personnel dispatched to difficult areas may be relaxed at discretion.· Employee training
Topband has built a multidimensional training system covering management training professional development skill
expansion and external learning guided by the qualification system aiming to empower employees' growth and provide
comprehensive support. The Company has formulated documents such as the External Training Management System the
Management Measures for Internal Part-time Trainers and the Mentor Management System to meet full-process needs from
new employee onboarding and in-service employee skill enhancement to career development. In the meantime the Company
has formulated the Policy on Encouraging the Improvement of English Proficiency to strengthen its international talent
reserve.In 2025 the Company updated the External Training Management System mainly standardizing the application process
payment time and amount restrictions of academic education scholarships as well as the application process and expense
reimbursement rules for external open courses certification training etc. This update aims to optimize management processes
enhance employees' professional competencies and provide the Company with more professional talents. The core revisions
include: reiterating and optimizing the quota standards for visa-free agreements under "training expenses" the application
conditions for scholarships and relevant process instructions.In addition based on the two major career development sequences the Company has developed differentiated training
programs.Training type Training progress in 2025
Training for professional · Special training: covering sales managers product managers system engineers quality
positions manufacturing engineers ME engineers IE engineers PE engineers and other R&D
engineer positions covering about 2000+ person-times 110+ courses and 250+ class-
hours.· Department internal training: 1365 sessions 600+ courses and 3000+ class-hours
· Employee training: about 16h/person including new employee training pre-job training
on-the-job training job transfer training and special job skills training courses
· Other external training: The Company provides external training opportunities and
employees can apply independently according to the system.Training for management · 10 management training sessions were conducted (including team leader training)
positions including 3 in Shenzhen 3 in Nantong two in Huizhou one in Ningbo and one in
Vietnam.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 69
Besides the Company also carried out training programs for officers vocational development and training for fresh
graduates non-skill training learning platform operations etc.Training type 2025 targets and progress
Officer training · Online and offline core management courses multiple team co-creation tasks
management book reading activities regular mentor guidance and specialized
communication training are conducted.· Innovative forms such as world coffee roundtable talk management concept debate
three-minute pre-class speech mini-course PK and "Two Apples" sharing are applied.Career development and · A young goose training camp is conducted for fresh graduates every year with courses
training for fresh graduates designed in the two modules of general education and workplace education.· During the probation period a dual-mode training program of mentorship and practice is
provided and overall training results are outputted in the form of defense and debriefing.· A one-year protection and challenge period is available to newcomers.· Care for fresh graduates is set regularly and anniversary gifts and related activities are
provided.Non-skill training · Training on safety corporate culture publicity and mental health counseling are offered.· An integrated training model of online learning and offline training is adopted including
flipped classroom offline battle and other forms.Learning platform · An online learning platform is offered and corresponding learning map courses for key
positions are configured along with offline training materials etc.· The learning platform covered 2207 people and had an activity level of 46%.Global special training · Language training: The Company conducted 6-month training covering areas such as
R&D manufacturing quality and functions through external agencies; 87 people
participated in total and their English proficiency improved by 2.45 levels on average.· Skills training for overseas personnel: One session of Wire Knowledge and Cost
Decomposition training was offered with one class-hour; 7 courses were offered including
MSA System Measurement and Analysis Seven IE Techniques and Fundamentals of
Static Electricity totaling 11 class-hours; special training was conducted for key personnel.70
Case Chinese and Mexican language course opened to improve cross-cultural communication skills
In 2025 the Mexican base launched a Chinese-Mexican
language exchange course. On January 9 the Chinese introductory
course was opened to Mexican colleagues to teach basic Chinese
expressions with 3 sessions in total; on January 14 the Basic
Spanish course was opened to Chinese colleagues also with 3
sessions. The course focused on basic practical content aiming to
strengthen language exchanges and understanding and improve
work communication efficiency between Chinese and Mexican
employees.Indicator Unit 2025
Total number of employees in all regions who have received job related training Person 13208
Percentage of number of employees in all regions who have received job related
%100
training in total number of employees
Percentage of employees who have accepted diversity discrimination or harassment
%100
training in all employees in all regions
Number of new recruits attending the induction training Person 8949
Employee training person-times (staff + employees) Person-time 20000+
Approx. 2
Amount allocated for employee training (staff + employees) RMB
million
Approx.Total hours of employee training (staff + employees) h
170000
Average hours of employee training (staff + employees) h/employee 12.62Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 71
2.4 Care for Health and Safety
Topband has established a comprehensive health and safety management system that protects the physical and mental
health of employees and occupational safety comprehensively through standardized control diverse protective measures and
normalized training.
2.4.1 Occupational health and safety management
Topband always places employee health and safety at an important position of sustainable development and has
established a comprehensive health and safety management pattern covering system building closed-loop control special
protection all-staff support and external collaboration. It strictly implements various control measures and annual goals and
steadily strengthens the defense line of physical and mental health and workplace safety for employees.· Occupational health and safety management system
Topband has always regarded employee health and safety as the core foundation for promoting sustainable development.With a systematic management model and comprehensive prevention and control measures it strives to create a safe and
healthy working atmosphere.The Company has established a mature occupational health and safety management system and introduced key rules
and regulations such as the Work Safety Management System the Work Safety Responsibility System and the Potential Risk
Screening Management System. The management scope covers the entire process of risk prevention responsibility
implementation and labor protection ensuring that all safety management work can be carried out in a standardized manner.In 2025 the Company updated the Stakeholder Safety Management Regulations and formulated normative documents such
as the Safety Risk Identification and Control System the Internal Reporting and Reward System for Potential Work Safety
Accidents the Safety Cost Management System and the Pipeline Safety Inspection System to provide stronger support for
workplace safety.The Work Safety Management Committee (hereinafter referred to as the "Safety Committee") of the Company is the
highest decision-making and executing body for corporate safety management responsible for coordinating all aspects of the
Company's work safety tasks. The Safety Committee is headed by the manager in charge of safety affairs of the
Administration Department and composed of heads of business units. Regular work meetings are held every quarter
covering the review and implementation of work safety regulations the verification of annual safety goals and reward and
punishment mechanisms the supervision of the operation of the safety standardization management system and the
investigation and rectification of safety accidents. In addition the Safety Committee implements a quarterly inspection and
assessment system to supervise the implementation of safety management responsibilities by various departments achieve
the level-by-level breakdown of safety management goals and ensure full employee coverage so that safety management can
penetrate into every position and every employee.72
Organizational Structure of the Topband Work Safety Management Committee
Director of the Safety
Committee
Manager of the
Administration Department
Work Safety Supervisor
Administration
Supervisor
Microelectronics Business Motor Business Unit New Energy Business Electric Control Business Electrics Business Unit
Unit Manufacturing Manager Unit Unit Manufacturing Manager
Manufacturing Manager Manufacturing Manager Manufacturing Manager
Topband sets strict goals in occupational health and safety implements laws regulations and rules on work safety
conscientiously and optimizes internal management to ensure the health of employees. In 2025 the Company achieved the
following occupational safety and health targets.Occupational Safety and Health Targets in 2025
Indicator Unit Target value
Safety accident targets
Acute poisoning accidents Nr. 0
Fire and explosion accidents Nr. 0
Occupational disease prevention and control targets
Occupational disease accidents Nr. 0
Occupational hazard conformity rate % 100
Annual occupational disease incidence % 0
Declaration rate of occupational hazards % 100
Integrity rate of occupational hazard
management archives % 100
Safety training targets
Achievement rate of safety education for new
employees % 100Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 73
The Company conducts multiple internal and external audits annually covering certification requirements such as the
ISO 45001 occupational health management system BSC (Business Social Compliance) and SMETA (SEDEX Member
Ethical Trade Audit) to ensure the effective operation of the occupational health and safety management system. In addition
the Company conducts RBA (Responsible Business Alliance) certification every two years and obtained a silver rating in
2025. Multiple bases of the Company have passed audit certification to the ISO 45001 occupational health and safety
management system.Bases that have passed ISO 45001 occupational health and safety management system certification (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Ningbo Topband Certified
4 Nantong Topband Certified
5 Topband Vietnam Certified
6 Topband Romania Certified
7 Topband Mexico Certified
8 Topband India Certified
RBA Silver Certification
· Occupational health and safety risk management
In face of various occupational health risks Topband implements a full-process and closed-loop control model and
ensures that routines risks are controllable through four steps: risk identification risk assessment risk control and monitoring
and improvement.74
Five Common Risks
Equipment Occupational
Operations operation Environmental Material useconditions health
On this basis the Company regularly carries out risk identification and assessment in the workplace handles identified
risks by level and category formulates corresponding control measures and requirements and sets deadlines for rectification.When there is any change in business activities the Company fully evaluates potential risks of its process material location
and equipment develops a safety operating procedure and provides pre-job operating procedure training for operators.Through these management procedures the Company effectively manages employee health and safety risks and ensures a
safe and healthy working environment.Occupational Health and Safety Risk Management Mechanism
Management
Key points Description
procedure
Risk · Regularly inspect the working environment to identify potential
identification · Workplace inspection hazards.· Employee feedback · Collect employees' opinions on health and safety issues through surveys
· Data analysis or meetings.· Third-party testing · Analyze accident and disease records to identify common risks.· Hire a third party to conduct safety site inspections and audits.Risk assessment · Risk analysis · Assess the likelihood and severity of identified risks.· Priority sorting · Determine the priority order of handling based on risk levels.Risk control · Reduce risks through equipment improvement or process optimization.· Engineering control
· Adjust work arrangements or strengthen training to reduce risks.· Administrative control
· Provide necessary protective equipment such as face masks and
· Personal protection
helmets.Monitoring and · Regularly inspect the working environment to ensure that control
improvement measures are effective.· Ongoing monitoring
· In case of an accident promptly investigate it and take improvement
· Accident investigation
measures.· Effect evaluation
· Regularly evaluate the effectiveness of health and safety management
and optimize it continuously.Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 75
· Protective measures for occupational health and safety
Topband has established a health and safety barrier in multiple dimensions. For specific risks the Company takes
various measures to protect the health and safety of employees and maximizes the protection of employees and related
personnel in high-risk environments. The Company has released the Health and Safety Code in both Chinese and English
which is communicated through safety dashboards and other forms to ensure that employees fully understand the relevant
requirements. The Company actively collaborates with professional institutions to obtain technical advice and draws on best
practices through industry exchanges to improve its safety management level continuously.Protective Measures
Chemical disposal · Chemicals or hazardous substances are collected stored in the hazardous waste warehouse and
transferred and treated by a third-party disposal company in a unified manner.· In case of an abnormality it is necessary to wear protective equipment before disposal.· Emergency handling procedure for chemicals
Electricity management · Organize safety training and clearly prohibit unauthorized wiring.Noise management · Distribute noise-reducing earplugs and conduct noise measurement at different locations in the
plant every year.Equipment inspection · Regular inspection of special equipment
· Regular calibration of safety attachments
· Regular maintenance of equipment and facilities
· Safety protection for dangerous areas of equipment
In terms of basic protection the Company provides employees with personal protective equipment such as protective
masks earplugs safety shoes helmets protective glasses protective gloves and face shields and establishes a
comprehensive process for handling work-related injuries to ensure the lawful rights and interests of employees in
emergencies. Meanwhile the Company conducts pre-job on-the-job and after-job annual occupational health examinations
for new employees and employees on hazardous positions and continuously monitors the health status of employees using
medical technology forming a comprehensive personnel health management mechanism.76
Work-related Injury Handling Process
Human resources and
Medical treatment administrative registration Injury recovery of The party involved fill out the work-related injury
for work-related the party involved report and the testimony of accident witness in
injuries hardcopy.The Administration Department The Administration Department
prepares an electronic accident intervenes to investigate the cause
investigation report. process and outcome of the accident.Work-related injury closure
documents
Apply for a Continue working without
work-related applying for a work-related
injury leave injury leave
Work-related
injury case
closed
Indicator Unit 2025
Number of deaths caused by work-related health issues Person 0
Amount of investment in work-related injury insurance and workplace
RMB ten thousand 597.11
safety liability insurance
Percentage of workplaces where employee health and safety risk
%
assessment has been conducted 100Practicing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 77
2.4.2 Occupational health and safety culture
Topband is committed to creating a healthy and safe working environment for all employees strengthening care for
employee safety and health conducting safety training and emergency management training and enhancing employees'
health and safety awareness.· Special safety training
Topband has established a rigorous safety training system to consolidate the foundation of safety capabilities for all
employees comprehensively. New employees must complete three levels of safety training and pass an evaluation before
starting working officially; frontline production employees are required to participate in safety training for not less than 20
minutes per month covering core points such as production operating procedures emergency response skills and
occupational disease prevention knowledge. In the meantime the Company requires all employees to regularly participate in
training on job operation safety employee behavior safety and safety awareness safety risk identification and control fire
safety etc. to achieve the early screening early detection and early intervention of health risks. In 2025 the Company
provided safety training for 884 hours in total involving 7944 person-times.· Emergency management training
In terms of emergency management system building the Company has formulated the Emergency Plan for Work Safety
Accidents which clearly defines the control standards for key production equipment and the disposal processes of different
types of accidents and regularly organizes emergency drills that are close to real scenarios. In 2025 the Company conducted
multiple drills successfully including response time checks familiarization with evacuation locations use of firefighting
equipment electric shock accident drills forklift accident drills chemical leakage drills etc. By simulating real accident
scenarios the self-rescue and mutual aid skills of employees and the efficiency of team emergency response are effectively
improved ensuring that emergency plans are highly practical. In order to further enhance the capacity to prevent and respond
to disasters and emergencies the Company has established a command system for emergency rescue and disaster relief and
strengthened the level of rapid response and cross-departmental collaborative disposal in case of emergencies to minimize
losses that may arise from accidents.Case Huizhou Topband conducted a fire drill to strengthen the safety defense line
On June 20 2025 in order to enhance the
emergency evacuation and self-rescue skills of
employees in case of fires and test the
organizational and coordination effectiveness of
emergency management Huizhou Topband
organized a fire emergency evacuation drill for the
first half year. The drill covered all business units
and logistics personnel including emergency
response and personnel evacuation at fire scenes
practical operations of firefighting equipment and
review and summary. The drill effectively
strengthened the fire safety awareness of all
employees and provided practical support for the
building of a normalized safety prevention and Practical Operations of Evacuation of Canteen
control system in the park. Firefighting Equipment Personnel78
2.5 Serving Community Development
Topband always adheres to the core concept of "boosting social harmony and spreading warmth through public welfare"
actively practices corporate social responsibility participates actively in various social welfare undertakings and carries out
precise empowerment focus on public welfare projects in multiple fields injecting a positive force into sustainable social
development through practical actions. In terms of consolidating and expanding the achievements of poverty alleviation
during the Reporting Period the Company's core business entities in Guangdong Province recruited 297 people lifted out of
poverty (formerly "registered poor population") actively to help consolidate the achievements of poverty alleviation through
practical actions.In the field of public welfare volunteer services the Company has established a systematic operational mechanism. The
Company has established the Topband Volunteer Association responsible for coordinating the Company's public welfare
volunteer activities. It has four divisions: publicity organization life and logistics.In 2025 the Topband Volunteer Association organized and participated in 14 activities with over 160 person-times of
participants in total. The activities covered themes such as environmental volunteer service care for children with special
needs book donation and park activity services interpreting responsibility and commitment through concrete actions.During the Reporting Period the Topband Volunteer Association received multiple honors and recognitions for its
outstanding contributions to public welfare such as "Volunteer Service Organization with Outstanding Contributions in
Shiyan Sub-district Bao'an District" "Excellent Child-friendly Sharing Unit" and "2025 Gold Medal Association of
Topband".Public Welfare Activities in 2025
Type of public welfare Activity theme
Green development and environmental
* Yangtai Mountain environmental protection tour
protection
Care for children with special needs * Fusion of disabled and able-bodied children
Educational support * "Hope and Dream for Du'an" public welfare book donation
* "Hope and Dream for Du'an" public welfare book donation (Stage 2)
Others * Finding shining volunteers
* Assisting in the Micro Public Welfare Love Member Conference
Case Charity donation to care for children's growth
On October 22 2025 the Topband Volunteer Association
carefully prepared and donated a batch of stationery books and
other materials in response to the "Warmth Longchuan" charity
donation activity initiated by the Shiyan Social Work Station and
with focus on growth needs of local children in Longchuan. Every
item carried the kindness and care of the Topband people and lit
up growth hope for children with every little bit of warmth. On
October 29 the Public Service Office of Yidu Town issued a
donation certificate to Topband expressing sincere gratitude for
the Company's philanthropic act. Donation Certificate from the Public Service
Office of Yidu TownPracticing Green Development and Innovation-oriented Development Being Compliant to Ensure
Promoting Ecological Harmony and Value Co-creation by Employees Steady Development Topband ESG Report 2025 79
Case Yangtai Mountain Low-carbon Action
On May 17 2025 the Topband Volunteer Association
organized the outdoor environmental protection volunteer action
in the Yangtai Mountain through the "Low-carbon Action"
activity series. The volunteers held garbage pickers garbage bags
and other tools to carry out all-round garbage cleaning along the
hiking trail. They collected and sorted plastic waste food
packages and waste items around the trail and in the forest
beautifying the ecological environment of the scenic area through
practical actions. This Yangtai Mountain environmental
protection volunteer activity further inspired the enthusiasm and
initiative of all employees to participate in environmental
protection and converted the green and low-carbon concept into a Yangtai Mountain Environmental Protection
conscious action of all employees. Volunteer Activity
In the meantime the Company deepened public welfare
collaboration with the local government actively established the
Micro Public Welfare Love Association of Shiyan Sub-district
Bao'an District Shenzhen with the Shiyan Sub-district Office and
was elected as the executive vice president of the association. In
this way the Company works together with all stakeholders to
make concerted public welfare efforts and push the boundaries of
public welfare services. In the future the Company will continue
to participate deeply in the field of charity care and carry out
various public welfare assistance activities routinely. We also
expect more partners to join us in gathering greater public welfare
forces to deliver love and warmth.Exchange with the Micro Public Welfare Love
Association of Shiyan Sub-district Bao'an
District Shenzhen
Indicator Unit 2025
Total investment of the Company in volunteer activities RMB ten thousand 0.7873
Number of employees participating in volunteer activities Person 164
Total hours of voluntary services provided by employees h 547
Average hours of voluntary services provided by employees h 3.33580
Being Compliant to Ensure Steady
Development
Standardized governance is the cornerstone of steady development for Topband. To protect
the rights and interests of all stakeholders and drive the long-term value growth of the Company
Topband is committed to building an efficient transparent and responsible governance system.Through the four aspects of a sound governance structure strict compliant operations adherence
to business ethics and strengthening data security Topband has provided solid support for long-
term stable operation and market cooperation.Decent work and Peace justice and Partnership that
economic growth strong promotes goal
organization achievementPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 81
3.1 Establishing a Sound Governance Structure
Topband continues to regard high standard modern corporate governance as the cornerstone of long-term stable
operation is deeply rooted in compliant operations and scientific decision-making in various operational links and
continuously optimizes the governance system of statutory rights and responsibilities coordinated operation and effective
checks and balances. Meanwhile the Company adheres to benefit sharing information transparency and smooth
communication in investor relations. These practices together form a solid governance foundation for the Company's long-
term stable development and continuous value enhancement.
3.1.1 Corporate governance structure
Topband has established a governance system that is transparent in rights and responsibilities efficient in operation and
effective in checks and balances. It strictly adheres to the Company Law of the People's Republic of China the Securities
Law of the People's Republic of China the Code of Corporate Governance for Listed Companies the Stock Listing Rules of
the Shenzhen Stock Exchange the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No.
1 - Standardized Operation of the Companies Listed on the Main Board and other laws and regulations and effectively
identifies and resolves potential conflicts of interest and other operational risks continuously improving the Company's
governance efficiency.In 2025 in close compliance with the requirements of the deepening reform of the capital market and new regulatory
requirements the Company comprehensively sorted out and optimized multiple basic internal control systems such as the
Articles of Association the Rules of Procedure for the General Meeting of Shareholders the Rules of Procedure for
Directors' Meetings and the President Work System in order to strengthen the operational efficiency of governance layers
such as the General Meeting of Shareholders the Board of Directors and the President Office Meeting as well as the
supervisory efficiency of specialized committees and to match changes in the market environment and regulation. In the
meantime based on regulatory trends and internal management needs the Resignation Management System for Directors and
Senior Executives the Information Disclosure Suspension and Exemption Management System and the Market Value
Management System have been formulated to further strengthen the Company's risk control and compliance governance
enhance the capital market's risk immunity and improve the level of scientific and standardized decision-making of the
Company.The Company actively improves its governance mechanism and continues to strengthen the professional oversight role
of the Board of Directors and its specialized agencies. In 2025 in response to the relevant reform provisions of the new
Company Law the Company carried out significant and compliant optimization and restructuring of its governance
organization while ensuring that its statutory supervisory functions are not lacking or weakened. The Board of Supervisors
was cancelled in accordance with laws and regulations and the Audit Committee of the Board of Directors undertook
relevant supervisory responsibilities. Currently the Board of Directors of the Company has established a Strategy and ESG
Committee a Nomination Committee a Salary and Assessment Committee an Audit Committee and a dedicated
independent director meeting to provide a dedicated discussion platform for independent directors ensuring their
independence and supervisory effectiveness. During the Reporting Period various meetings of Topband were convened and
held and voting was carried out in strict accordance with legal procedures fully leveraging the professional advice and
independent supervision role of directors and independent directors on key matters such as strategic guidance internal
auditing and control and major transaction decision-making. In 2025 the Company held 4 general meetings of shareholders
6 meetings of the Board of Directors 7 committee meetings (including two meetings of the Salary and Assessment
Committee and 5 meetings of the Audit Committee) and two special meetings of independent directors ensuring timely and
scientific decision-making on major issues of the Company according to law.82
Corporate Governance Structure
General Meeting of
Shareholders
Strategy and ESG Committee
Nomination Committee
Board of Directors Secretary of the Board ofDirectors
Salary and Assessment Committee
Audit Committee
President
During the Reporting Period the Company gained widespread recognition from the industry and third parties for its
efficient governance system and outstanding management capabilities. In the future Topband will continue to optimize its
governance structure continuously improve its governance level keep pace with the times and provide solid governance
support for the Company's sustainable development.Corporate Honors
· CCXGF – ESG Rating A+
· Shenzhen Corporate Governance Research Association - 2025 Top 20
Listed Companies in Corporate Governance in the Greater Bay Area
· Shenzhen Corporate Governance Research Association - 2025 Top 20
Listed Companies in Information Disclosure in the Greater Bay Area
Average hours of voluntary services provided by employees
· Securities Times – 16th "Investor Relations Management Tianma Award"
for Listed Companies
· Securities Times – 19th Top 50 Chinese Listed Companies in New Quality
Productive Forces 2025 Top 20 Listed Companies
in Corporate Governance in the
Greater Bay Area
Capital Market Honors
· Securities Times – 16th "Investor Relations Outstanding Board Secretary Award
for Chinese Listed Companies"
· Securities Times – 19th "Sunshine Board Secretary Award for Chinese
Listed Companies"
"CCXGF ESG Rating A+" in
2025Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 83
· Diversity of the Board of Directors
Topband continues to promote the diversification of its Board of Directors providing multi-dimensional empowerment
for the Company's decision-making. In the stage of candidate selection for the Board of Directors the Company
comprehensively elects professionals with relevant business competencies accounting experts strategic experts and
investment professionals based on business requirements providing objective and professional advice to make more scientific
and fair decisions. In addition to examining their professional backgrounds and business competencies the Company also
comprehensively considers diverse personal factors such as age structure educational experience and personal resumes of its
members introducing broader perspectives and experience into the Board of Directors so that their decisions can better serve
the Company's long-term development strategy.During the Reporting Period the Board of Directors of the Company was composed of 7 members including two
employee directors and two shareholder directors as internal directors.Diversified Composition of the Board of Directors
Professional competencies
Educational
Position Name Gender
level Industry Financial CorporateStrategy Investment
experience accounting management
Wu
Chairman and President Male Master
Yongqiang
Director Vice President
MaWei Male Bachelor
and BG Head
Director Vice President Zheng
Male Master
and BG Head Sibin
Peng
Director and BG Head Male Master
Ganquan
Li
Independent director Male Doctor
Xumeng
Chen
Independent director Male Doctor
Zhengxu
Independent director Qin Wei Male Master
· Independence of the Board of Directors
The Company continuously improves the system and requirements for director independence to ensure the scientific and
objective decision-making of the Board of Directors and effectively prevent potential conflicts of interest. The Company has
established the Work System for Special Meetings of Independent Directors in accordance with the Management Measures
for Independent Directors of Listed Companies. Independent directors as third parties who do not hold positions in the
Company are selected through the deliberation of the General Meeting of Shareholders to ensure their independent
supervision and professional advice. In the meantime in order to ensure the effective performance of the functions of the
independent directors the Company stipulates that a special meeting of independent directors must be attended by more than
two-thirds of the independent directors or their proxies in order to ensure scientific and effective decision-making. The
independent directors deeply participate in various governance meetings of the Company including meetings of the Board of
Directors general meetings of shareholders and strategic planning meetings fully leveraging their professional advantages in
financial auditing standardized operations strategic development and other fields. The management of the Company highly
values professional opinions raised by the independent directors and regards them as an important reference for optimizing
information disclosure improving investor relations strategies and preventing operational risks. In addition the Company
requires each independent director to submit a performance report at the annual general meeting of shareholders allowing
shareholders to fully understand the annual performance of each independent director in order to facilitate subsequent
adjustments and arrangements. In 2025 the Board of Directors had three independent directors with professional
backgrounds covering finance auditing strategy investment and other fields providing solid professional support for the
Company's scientific decision-making.84
Independent Composition of the Board of Directors
Indicator Unit 2024 2025
Number of board members Person 7 7
Number of independent directors Person 3 3
Percentage of independent directors in the
%42.8642.86
Board of Directors
Number of members of the Salary and
Person 3 3
Assessment Committee
Number of independent directors in the
Person 2 2
Salary and Assessment Committee
Percentage of independent directors in the
%66.6766.67
Salary and Assessment Committee
Number of members of the Audit
Person 3 3
Committee
Number of independent directors in the
Person 3 3
Audit Committee
Proportion of independent directors in the
%100100
Audit Committee
Number of members of the Nomination
Person 3 3
Committee
Number of independent directors in the
Person 2 2
Nomination Committee
Proportion of independent directors in the
%66.6766.67
Nomination Committee
Number of members of the Strategy and
Person 5 5
ESG Committee
Number of independent directors in the
Person 1 1
Strategy and ESG Committee
Percentage of independent directors in the
%2020
Strategy and ESG Committee
· Building of the Board of Directors
Topband attaches great importance to the building of the Board of Directors striving to comprehensively build the
Board of Directors into the executive center of the Company in terms of board appointment functions remuneration and
conflict of interest management in order to cope with internal and external risks and changes. On this basis the Company has
formulated a series of regulations on the representation functions and appointment of the Board of Directors promoting the
efficient connection between board decisions and the routine business management of the Company and ensuring the timely
implementation of strategic decisions.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 85
Basic Building of the Board of Directors
Building dimension Building scope
The Chairman of the Company is the director who represents the Company in executing its affairs
Responsible entity
and serves as the legal representative.The Board of Directors is the decision-making body of the Company exercising the power to
Main functions decide on business and investment plans formulate profit distribution plans and appoint or dismiss
the president and other executives.Employees who meet the requirements of the China Securities Regulatory Commission the stock
Eligibility review
exchange and the Company.In 2025 the Company revised the Remuneration Management System for Directors and Senior Executives and
continuously established and optimized a remuneration system deeply linked to the Company's efficiency performance goals
personal performance ability and sustainable development ensuring the rationality incentive nature and long-term value
orientation of remuneration distribution and strengthening the principle of matching governance capacity with the risk-
benefit profile. The annual salaries of directors and senior executives are linked to their ability to perform their duties and
current performance and also incorporate risk management considerations; the plan scientifically sets up fixed salary
performance bonus and retirement benefit arrangements and specifically clarifies the remuneration recovery and refund
mechanism after risk events are triggered to prevent excessive risk-taking behavior. Meanwhile the Company has established
a multidimensional comprehensive remuneration plan and special incentive funds for all key talents supplemented by regular
equity incentives and employee stock ownership plans to fully protect employees' remuneration rights and achieve deep
binding between the core team and the Company's medium - and long-term strategic goals.Remuneration Building of the Board of Directors
Based on their specific positions and combined with the basic salary level of the previous year an annual
salary structure that is strongly linked to business responsibility risks and performance is implemented
including a fixed basic annual salary (determined by responsibilities and competencies paid monthly) and a
floating operating annual salary. Among them:
Remuneration of non- 1. The annual salary of a director serving as the head of a business department: based on the core of net profit
independent directors growth and business value combined with financial indicators customer indicators internal operations
learning and growth and other multidimensional organizational KPIs for assessment following the "no
bottom" mechanism adjusted according to the actual operating situation of the year;
2. For a non-business line director his/her annual salary is evaluated based mainly on the unique job value
created the achievement rate of annual key goals and empowerment support for the business line.Work allowances for independent directors shall be paid according to a plan formulated by the Board of
Remuneration of Directors of the Company after review and approval by the General Meeting of Shareholders.Reasonable expenses incurred by independent directors in attending meetings of the Board of Directors and
independent directors general meetings of shareholders or performing other compliance duties shall be fully borne by the Company
in accordance with the relevant provisions of the Articles of Association.Indicator Unit 2023 2024 2025
Ratio of the annual total remuneration of the
highest-earning individual to the annual total % 16.53 14.9* 13.87
remuneration median of all employees
Ratio of the growth rate of the annual total
remuneration of the highest-earning individual
%1229484
to the growth rate median of the annual total
remuneration of all employees
*Last year's calculation method has been corrected86
To effectively prevent and mitigate potential conflicts of interest the Company has established a series of support
systems. These systems together constitute a supervision and balance system which regulates the business behavior of
company employees prevents potential conflicts of interest and ensures the effectiveness and compliance of corporate
governance.The Company has formulated the Articles of Association which has been reviewed by the Board of Directors and the
General Meeting of Shareholders and defines the boundaries of rights and responsibilities and behavioral norms of each
governance level; on this basis the Company has formulated various internal management systems as a code of conduct for
all employees effectively protecting the legitimate rights and interests of the Company all shareholders and stakeholders.For the controlling shareholder and actual For directors and senior executives For all employees
controller
Strictly follow regulatory requirements Clarify and strengthen their loyalty and In routine business management the Company
standardize the approval process and diligence obligations and strictly regulate the fully implements the system of avoiding
information disclosure obligations for major external investment and part-time behavior of employee relatives and the mechanism of
matters such as share increase and decrease executives. Require executives and core declaring conflicts of interest. Strictly regulate
external guarantees and fund transactions and business/technical backbones to sign non- the business communication commercial
resolutely prevent abuse of power and transfer competition agreements and confidentiality bribery and external investment behavior of all
of benefits. agreements to prevent core personnel from using employees and firmly prevent internal and
their positions for personal gain or damaging external conflicts of interest from the grassroots
company interests; in terms of decision-making source.mechanism strict implementation of the
avoidance and voting procedures for
shareholders and directors in related party
transactions and pre examination of major
related party transactions through independent
meetings of the Board of Directors to ensure the
fairness of transaction pricing and the legality
and compliance of decision-making procedures.All related party transactions that meet
disclosure standards are fully disclosed in
regular reports or interim announcements to
ensure procedural compliance and transparency.During the Reporting Period the Company regularly conducted special training on information disclosure and capital
market compliance for board members based on the latest regulatory developments. Through institutional promotion and case
analysis the Company enhanced the board members' understanding of the information disclosure and business compliance
rules and strengthened their ability to avoid conflicts of interest and handle unexpected risks.
3.1.2 Investor relations management
Topband has established an efficient and transparent information disclosure and
communication loop which not only ensures timely and accurate information transmission but
also continuously consolidates the trust relationship with shareholders enabling shareholders
to clearly and timely understand the Company's business situation and development process.The Company strictly adheres to laws and regulations such as the Securities Law of the
People's Republic of China and the Management Measures for Information Disclosure of
Listed Companies and strengthens the transparency of enterprise information. On this basis
the Company continues to revise and improve the Investor Relations Management System and
has revised the Rules of Procedure for the General Meeting of Shareholders based on the actual
situation ensuring the timely transmission of key information and protecting shareholders'
right to know and participate. In addition the Company in accordance with the Public Opinion
Management System properly responds to various public opinion impacts maintains the
Company's market value and commercial reputation guarantees normal production and 2025 Investor Relations
operation and effectively protects the legitimate rights and interests of investors. Management Tianma
During the Reporting Period Topband received multiple honors for its outstanding Award for Chinese Listed
investor relations management reflecting the widespread recognition of the Company's Companies
investor management achievements by the market.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 87
· Benefit sharing
Topband always puts the interests of shareholders and investors in an important strategic position and is committed to
building a long-term and stable value sharing mechanism to ensure that shareholders and employees can sustainably and
fairly share the value of the Company's growth.Benefit Sharing Measures
Cash dividend Stock options Employee stock
ownership plan
The Company has always maintained a stable profit distribution policy using real benefits to pay back the support and
expectations of all parties for the Company. In 2025 based on the current development status and cash flow support of the
Company the Company planned to pay a cash dividend of RMB 0.7 (tax inclusive) per 10 shares to all shareholders totaling
RMB 86.0153 million (tax inclusive) based on the total share capital of 1228789388 shares after deducting the 18045600
shares held in the Company's repurchase special securities account from the total share capital of 1246834988 shares. (Note:
The final dividend distribution plan is subject to the data approved by the General Meeting of Shareholders and the data on
the dividend distribution and share registration date.) In addition to cash dividends the Company actively uses share
repurchase tools to maintain shareholder value. Since its listing in 2007 the Company has accumulated cash dividends of
RMB 838 million and repurchased 38.0657 million shares for a total amount of RMB 288 million; in addition the Company
regularly implements equity incentives or employee stock ownership plans deeply linking the interests of the core team with
the Company's market value performance.To ensure the fairness and rigorousness of incentive measures the Company has hired a third-party intermediary to
conduct independent audits and risk control in key aspects such as the grant price performance evaluation and expense
provision of the incentive plan and seek professional opinions from independent directors in a reasonable manner. Through
these measures the Company has effectively protected the rights and interests of small and medium-sized investors while
promoting a high degree of unity among the interests of employees shareholders and the Company.Indicator Unit 2023 2024 2025
RMB ten
Cash dividends (tax inclusive) 7350.27 8601.53 8601.53
thousand
Net profit attributable to shareholders of listed companies in RMB ten
51551.4067144.2736387.30
the consolidated statement in the year of dividend distribution thousand
Percentage of cash dividends in the consolidated net profit
%14.2612.8123.64
attributable to the parent company
Cash dividends to be distributed per 10 shares (tax inclusive) RMB 0.6 0.7 0.7
RMB ten
Amount of repurchases 5997.00 9570.21 0
thousand
Percentage of repurchases in the consolidated net profit
%11.6314.250
attributable to the parent company
RMB ten
Total cash dividends (including repurchase forms) 13347.27 18171.74 8601.53
thousand
Percentage of total cash dividends (including repurchase) in the
%25.8927.0623.64
consolidated net profit attributable to the parent company88
· Information disclosure
Topband adheres to a strict information disclosure system and a strict audit standard to prevent information leakage risks
ensure fairness impartiality and openness in information disclosure and protect the interests of investors.Improving the institutional system Deepening disclosure content
The Company continues to improve its information In addition to regularly disclosing regular reports
disclosure management mechanism strictly adheres to the Company actively improves the transparency of non-
relevant laws and regulations such as the Company Law of financial information enhances the readability of
the People's Republic of China and the Securities Law of information disclosure and replies from the Shenzhen
the People's Republic of China and effectively assumes Stock Exchange's interaction platform and provides
the responsibility of information disclosure. It is sufficient information (e.g. detailed financial data in the
committed to enabling investors to fully and timely grasp annual report and industry trends) for investors to make
the Company's operations and business progress. The decisions. It regularly discloses the cross appointment
Company has established and improved the Public status of board members important stakeholder
Information Disclosure Management System the relationships the controlling shareholder's shareholding
Information Disclosure Committee Work System and the dynamics and day-to-day related party transaction
Insider Information Insider Registration Management information. In the meantime the Company guarantees
System to standardize disclosure procedures implement that shareholders exercise their right of inspection and
disclosure responsibilities strengthen insider information reproduction according to law. Shareholders can obtain
control and effectively prevent information leakage. documents such as the Articles of Association records of
the General Meeting of Shareholders resolutions of the
Board of Directors and financial accounting reports
according to law continuously improving the
transparency of the Company's operations.Strengthen external supervision and regulatory
recognition
In 2025 the Company hired a qualified third-party
accounting firm to regularly supervise and audit the
Company's annual reports and other matters ensuring the
authenticity and credibility of financial data. With solid
credit reporting work the Company's rating was upgraded
from "B" to "A" for the first time in the 2024-2025 listed
company information disclosure rating assessment of the
Shenzhen Stock Exchange confirming the high
recognition of the Company's standardized operation and
information disclosure quality by regulators.· Information disclosure
Topband has established smooth communication channels for various investors such as shareholders investors and
potential investors. Through diversified communication methods it strengthens information communication responds to
concerns of shareholders and investors in a timely manner promotes positive interactions with them and improves the
transparency of the Company's management.In 2025 the Company actively responded to regulatory calls and formulated and released the action plan for "double
improvement of quality and return" clearly conveying the Company's governance effectiveness main business development
strategy and market value management concept to the market and effectively enhancing the Company's brand image and
transparency in the capital market with an open and responsible attitude. On the daily communication level the Company
builds communication bridges with investors through various methods such as answering investor hotline calls providing
feedback via email the Shenzhen Stock Exchange's interaction platform (irm.cninfo.com.cn) performance presentation
sessions roadshows and counter roadshows and general meetings of shareholders in order to communicate with investors in
a positive open and responsible manner.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 89
Communication Channels
Dimension Specific scope Core performance
· Performance presentation sessions 4 performance presentation sessions
· Investor exchange meetings 3 extraordinary general meetings of
Active communication shareholders
· Roadshows and counter roadshows
1 annual general meeting of
· General Meeting of Shareholders shareholders
The interaction platform replied to 358
· Investor hotline questions in total.·Interaction platform
Passive response · Email
· Onsite reception
· Public opinion complaints and reports90
3.2 Standardized and Compliant Operations
Topband comprehensively promotes the upgrading of compliance system and the construction of risk prevention and
control capabilities with compliant operations being the foundation and risk management being the lever. Through the
integration of institutional building process control and cultural immersion the Company deeply integrates compliance
requirements and risk prevention into strategic decision-making business execution and day-to-day operations providing
solid compliance support for the Company's global layout and sustainable development.
3.2.1 Compliant operations
Topband continuously improves its compliance management system and has built a core line of defense for the
Company's stable operation through multiple measures such as structural stratification institutional improvement
strengthened supervision and training and publicity.· Compliance management system
Topband has always regarded compliance management as the core lever for stable operation and built a compliance
system covering all business scenarios. The Company has formulated multiple rules and regulations including the Topband
Business Conduct and Compliance Guidelines the Anti-bribery Agreement the Management Measures for Anti-unfair and
Fraudulent Behavior and Reporting Reward the Management System for the Declaration of Conflicts of Interest between
Employees and the Company and the Management Regulations for Protecting Whistleblowers laying a solid institutional
foundation for compliant operations. In 2025 the Company updated the Export Control Policies and the Customs Compliance
Implementation Requirements to further standardize import and export compliance management.The Company has established a three-level compliance management structure consisting of governance management
and execution with legal financial securities audit customs and other departments as the core supplemented by supervision
and support mechanisms forming a coordinated management system with clear rights and responsibilities. In addition the
Company has established a rigorous compliance review process and clarified the review responsibilities of relevant
departments with equal rights and responsibilities.To accurately identify management weaknesses and process loopholes the Company regularly conducts internal control
special audits and on-site audits and on this basis outputs targeted improvement plans to comprehensively enhance the
effectiveness and management quality of the internal control system. Meanwhile the Company has launched an internal
control audit management platform to efficiently promote problem rectification and achieve the full-cycle tracking and
management of audit items.Compliance Review
Review department Finance Customs affairs Legal affairs Securities Audit
Scope of review
Tax payment and Import and Contract agreement Related party AEO advanced
export tax refund export customs documents transactions major certification
declaration transactions external compliance audit
investments compliance security environment
governance etc. audit etc.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 91
In 2025 the Company strengthened compliance supervision through internal and external collaboration. Externally the
Company appointed RSM China CPA LLP to audit annual reports and other matters to identify potential risks; internally the
Company continuously conducted multiple specialized internal audits including import and export business audits and AEO
certification sustainability audits. The internal audit results show that the Company's import and export business meets the
customs regulation requirements and no major compliance risks were found during the Reporting Period. The overall
compliance management level has been effectively verified and improved.· Building of compliance culture
Topband actively carries out compliance promotion and training for employees and suppliers strengthens compliance
awareness and cultivates compliance habits. The Company has formed a multi-channel publicity and training model
internally and continues to carry out education and publicity activities through its official account business group official
website internal publication Yanxingzhe and other channels. In addition the Company provides training for all newly hired
employees which includes content related to compliance management such as Legal Fundamentals Trade Secret Protection
Company Introduction Benefits and Rules and Regulations with an average training time of 1.5 hours per person.During the Reporting Period the Company conducted 13 compliance training sessions with over 18 hours and 1133
person-times of participants in total and an employee training coverage rate of 20%. In the future the Company will continue
to promote compliance building and ensure the comprehensive implementation of compliance culture.Indicator Unit 2025
Number of compliance training sessions Time 13
Total hours of compliance training h 18.75
Person-time participating in compliance Person-time 1133
training
Employee coverage of compliance training % 20
Case Carry out tariff policy training and strengthen employees' compliance awareness
On December 16 2025 the Company conducted special
training on "Sharing of Mexico's Tariff Policy for China" inviting
experts to deeply interpret the amendments to the General Import
and Export Tax Law. The training scope includes legal persons
customs executives and personnel from core business
departments such as audit legal and sales. The training focuses
on the policy background analysis of tariff laws and response
strategies helping the team quickly grasp the impact of tariffs on
1463 Mexican commodities ensuring the compliance and cost
control of the Company's export business to Mexico and laying a
solid compliance foundation for the stability of the global supply
chain.Sharing of Mexico's Tariff Policy for
China92
3.2.2 Risk management
Topband has established a risk prevention and control system covering the entire chain improved the governance
structure refined control processes strengthened trade secret protection and combined systematic training and case practice
to comprehensively enhance risk control capabilities and ensure stable business development.The Company takes the Internal Control Management System and the Enterprise Risk Management Framework as its
core systems and combines compliance processes and regulatory requirements of various business lines to deeply embed risk
control requirements into the entire chain of corporate governance including strategic planning business decision-making
business execution internal control auditing etc. forming a closed-loop management mechanism of "institutional constraints
– process control – supervision feedback". In 2025 the Company set clear risk management goals and achieved them
throughout the Reporting Period driving the continuous improvement of the Company's risk management capabilities.Risk Management Targets
Target Appeal Target value
Asset and credit risk control Customer credit risk control closed-loop
mechanism:
Proactively activate and recover overdue
Non-litigation and litigation collection accounts and non-performing assets
(RMB 35 million) reducing costs and improving efficiency
by RMB 35 million enhancing the
overall asset liquidity and financial
health of the Company.Risk prevention in overseas Submit 3 overseas base legal compliance Overseas compliance barrier building:
operations research reports Implement and output at least 3
compliance and legal special reports for
core overseas bases providing pre
guidance for overseas business
compliance and development.Routine operational risk screening Risk identification by core risk control Early warning coverage by risk control
personnel/5 risk per person on average grid:
Deepen the culture of risk control
promote the grid-based identification of
risks in various business lines establish
a normalized self-examination and self-
correction mechanism identify risks in
core positions and focus on controlling
key risks.Topband strictly adheres to the principle of "three lines of defense" in risk management and regards risk control as the
core work of business management. Relying on special improvement actions and precise single point control it builds a long-
term operational risk control mechanism. During the Reporting Period the Company conducted a review of key internal
control points prepared internal control application manuals and evaluation manuals in conjunction with major departments
and conducted annual internal control self-assessment. In 2025 the Company identified 13 key risks systematically and took
relevant risk control measures.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 93
"Three lines of defense" for risk management
Level Responsible department Scope of responsibilities
· Directly participate in risk identification assessment and
The first line of defense Business departments
control responsibilities separation in day-to-day operations.· Build a risk database.The second line of defense Compliance Department
· Provide risk management support and guidance.· Routine supervision and feedback
The third line of defense Audit Department
· Internal audit
On this basis the Company's risk management process is divided into three core stages: risk identification risk control
and risk disposal. The Company regularly iterates and updates the risk factors in the risk database based on changes in the
internal and external environments and accurately defines various risks to ensure the professionalism and precision of risk
identification and management. In 2025 after a comprehensive investigation and evaluation the Company did not have any
significant deficiencies in internal control operations nor were there any major violations.Risk Management Process
Risk management
Risk identification Risk control
The Company actively builds a legal risk The Company ensures the effectiveness and According to the nature and severity of the
database systematically collects organizes and sustainability of risk management measures risks the Company adopted corresponding
manages legal risk information in order to through the formulation of overall plans response strategies in accordance with the law
identify various potential risks timely and implementation of specific measures evaluation to avoid or reduce potential losses caused by
accurately. of implementation effects and supervision the occurrence of risks.mechanisms.In the meantime Topband has incorporated the protection of trade secrets into its management scope established a
sound closed-loop feedback mechanism for trade secret risks and achieved the efficient collection accurate analysis and
rapid disposal of risk information. The Company has established a diversified and convenient trade secret risk feedback
channel matrix covering internal collaboration platforms dedicated email addresses and 24-hour feedback hotlines
comprehensively covering employees partners and other stakeholders ensuring that various trade secret risk clues can be
directly delivered to the management end in a timely manner. On this basis the Company has also developed a standardized
feedback information handling process ensuring that each item is responded to and everything is implemented.In addition the Company focuses on key aspects of trade secret protection and provides systematic risk training to trade
secret administrators in various business domains significantly enhancing their professional skills in identifying assessing
and controlling trade secret risks. During the Reporting Period the Company conducted 6 risk management training sessions
with 346 person-times of participants in total.94
3.3 Adherence to Business Ethics
Topband adheres to the dual wheel drive of system and culture. On the one hand it establishes a three-dimensional
control system covering business ethics compliance comprehensive anti-corruption reporting and whistleblower protection
and builds a barrier of clean operation with a rigid system; on the other hand through special training regular compliance
publicity and new employee education it promotes the internalization and externalization of business ethics concepts and
comprehensively develops a clean and upright business ecosystem.
3.3.1 Business ethics line of defense
Topband has established a system covering business ethics compliance anti-corruption reporting and whistleblower
protection. Meanwhile through special training regular promotion and new employee education the Company actively
promotes the implementation of relevant requirements and concepts to create a compliant and clean business environment.· Anti-unfair competition
Topband is deeply committed to building integrity cracking down on violations of business ethics building a strong line
of defense with zero tolerance setting high standards with systems and regulations and creating a business ethics compliance
system suited to its own characteristics.According to relevant laws and regulations such as the Anti-unfair Competition Law of the People's Republic of China
and the Anti-Monopoly Law of the People's Republic of China the Company has formulated the Topband Business Conduct
and Compliance Guidelines and the Management Measures for Anti-unfair and Fraudulent Behavior Complaints and Reports.During the Reporting Period the Company did not engage in any major litigation involving corruption unfair competition or
monopolistic behavior.· Anti-corruption procedure
The Company has established a comprehensive supply chain and operational anti-corruption management system. The
Company has established strict preventive control measures for stakeholders and key businesses in core processes to control
corruption risks from the source during transactions and operations.Anti-corruption Management
Management level Management objects Management measures
Employees Sign the Integrity Agreement for Procurement Personnel.Supply chain anti-
corruption Sign the Integrity Commitment Letter and the Anti-bribery AgreementBusiness partners
before cooperation.Personnel on key positions Conduct supervision and auditing irregularly.Anti-corruption in · Main business processes
day-to-day operations Conduct monthly audits inventory of raw materials and conduct anti-· Major domestic and
fraud reviews.overseas production basesPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 95
To enhance the effectiveness of supervision the Company's anti-corruption management has achieved comprehensive
coverage and the anti-corruption policies and procedures have been fully communicated to all employees executives and
suppliers at all levels. During the Reporting Period the Company conducted internal audits and risk assessments on matters
related to business ethics covering 13 core R&D/production bases and achieving a 100% supervision coverage rate for
R&D/production bases. In the meantime the Company conducted an anti-fraud email questionnaire survey for 603 suppliers
to strengthen the integrity control of the supply chain. In 2025 the Company's risk assessment result was low risk.Indicator Unit 2025
Total number of employees receiving anti-corruption policies and procedures
Person 13208
from the Company
Percentage of the Company's anti-corruption policies and procedures
%100
communicated to employees
Total number and percentage of business partners receiving anti-corruption
policies and procedures from the Company % 100
(segmented by business partner category and region)
Total number of regulator members receiving anti-corruption policies and
Person 7
procedures from the Company
Percentage of anti-corruption policies and procedures of the Company
%100
communicated to members of the governing body
· Reporting mechanism and whistleblower protection
Topband continuously optimizes its reporting mechanism expands reporting channels and encourages employees to
actively expose suspicious behavior.In accordance with the Management Measures for Anti-unfair and Fraudulent Behavior Complaints and Reports the
Company has specified a variety of reporting channels in detail including online phone calls emails audit WeChat official
account and reporting mailboxes. The reporting scope covers the Company's partners customers suppliers and internal and
external employees.Reporting channels
Telephone 0755-27651888-8040
Email tbjb@topband.com.cn
Audit Center Shenzhen Topband Co. Ltd. Topband Industrial Park No. 1 Yongteng Third
Letter
Road Tangtou Community Shiyan Sub-district Bao'an District Shenzhen 518108
In addition the Company has established a reporting bonus system providing corresponding rewards for verified reports.In the face of violations the Company will take different disciplinary measures based on their severity including credit
deduction warning demerit dismissal and transfer to judicial authorities.In terms of protecting the privacy of whistleblowers the Company strictly follows the Regulations on the Protection of
Whistleblowers to prevent whistleblowers from receiving any form of unfair treatment. The Company strictly controls the
scope of informed personnel during the investigation process adopts an undercover investigation approach and effectively
protects the legitimate rights and personal safety of whistleblowers.96
3.3.2 Business ethics culture
Topband actively carries out business ethics training to help all employees develop a healthy working thought. We
organize special training on anti-fraud and integrity culture every quarter focusing on the core theme of "Duty Crime and
Risk Prevention". Through case analysis and special lectures we guide employees to deeply understand the harm of corrupt
behavior. During the Reporting Period the Company conducted 5 training sessions on business ethics with 1287 person-
times of participants in total.Carry out training on preventing the risk of job-related crimes and standardize employees' job-
Case related behavior
On March 26 2025 the exchange training entitled "Duty
Crimes and Risk Prevention in the Company's Operations"
organized by the Company's Audit Center was held as scheduled
in Shenzhen. This training was conducted both online and offline
with participants including managers supervisors procurement
colleagues etc. At this exchange meeting discussions were made
in three aspects: current situation research case sharing and risk
prevention further strengthening the self-restraint behavior of
employees and providing effective support for reducing duty
crimes and preventing related risks.Exchange and Training on Duty Crimes
and Risk Prevention
Meanwhile the Company promotes the normalization of business ethics education and actively conducts online
compliance classes; based on the WeChat official account the Audit Department issued documents to publicize compliance
at major festivals such as the Spring Festival and the Mid-Autumn Festival and disclosed punishment announcements for
violators through the internal office software to strengthen the integrity awareness of all employees in a dual-track model of
"positive guidance + negative warning".In addition the Company attaches great importance to business ethics training for new employees and includes business
ethics related training such as Protection of Trade Secrets in the new employee training curriculum covering all new
employees.Indicator Unit 2025
Total number of times of anti-corruption training provided Time 5
Total person-time receiving anti-corruption training Person-time 1287
Number of directors receiving anti-bribery and anti-corruption training Person 4
Percentage of directors covered by anti-bribery and anti-corruption training % 57
Total number of managers receiving anti-bribery and anti-corruption training Person 6
Percentage of managers receiving anti-commercial bribery and anti-
%66
corruption training
Number of employees receiving anti-bribery and anti-corruption training Person 1281
Proportion of employees receiving anti-bribery and anti-corruption training % 9.70Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 97
3.4 Data Security Protection
Topband combines compliance requirements system support and technological empowerment to establish an
information security and customer privacy protection system that covers systems processes and special measures
continuously consolidating the Company's foundation in data security and trade secret protection.
3.4.1 Information security governance
The Company continuously improves its information security governance strengthens its information security
management processes risk management and related training to systematically build an information security protection
network.· Information security system and architecture
Topband strictly adheres to a series of national laws regulations and industry standards such as the Cybersecurity Law
of the People's Republic of China the Regulations on the Security Protection of Computer Information Systems of the
People's Republic of China and the Management Measures for Information Security Level Protection. It regards data security
and information security management as the key cornerstone for ensuring stable business operations protecting customer
rights and interests and consolidating the Company's core competencies.On this basis the Company continuously iterates and optimizes the Network Information System Security Management
System with focus on practical needs of digital transformation and global operations defining the boundaries of
responsibilities operational norms and emergency response processes for information security management covering
multiple key areas such as network platform operation and maintenance confidential information control and user
permission management and ensuring that there is no blind spot in the security protection of its network information platform
and that management standards achieve full coverage.To ensure the efficient implementation of information security strategies the Company has established a coordinated
three-level information security management framework with clear responsibilities. As the coordination core the Trade
Secret Protection Committee comprehensively leads the top-level design of information security and trade secret protection.As the special execution center the trade Secret Department takes the lead in formulating information security management
implementation plans and technical protection standards around customer privacy protection needs enterprise development
strategies and business plans and collaborates with the IT Department and the Audit Department. Each business line has a
dedicated business secret administrator as the "last mile" executor of information security management strictly following the
established plan to promote refined control in the three dimensions of personnel environment and information.98
Information Security Management Structure
Trade Secret Protection Committee
IT Department Trade Secret Department Audit Department
Technology strategy Trade secret administrators Supervision and suggestions
Information confidentiality Personnel confidentiality Environment confidentiality
management management management
Attention from the top management supervision by the management independent customer
confidentiality team inclusion in performance evaluation
· Information security management process
Based on the Company's global business layout and the characteristics of the entire industry chain Topband focuses on
three core areas: security technology R&D security management system building and support for secure operations. In order
to achieve precise risk prevention and closed-loop management the Company innovatively implements a full-process risk
management strategy covering the pre-event during-event and post-event stages and builds a comprehensive information
security protection management process.To strengthen precise control over information access the Company implements strict hierarchical and classified
management for confidential information permissions. By sorting out core business information and developing detailed
confidentiality level permission classification criteria and exclusive confidentiality level permission tables the Company
defines the classification rules storage specifications communication paths and access permission boundaries for
confidential information of different categories and levels ensuring that each item of confidential information has a clear
control basis. In addition the Company has established a supporting permission approval process to review information
access changes cancellations and other operations preventing unauthorized personnel from illegally obtaining using or
leaking confidential information from the source and achieving full traceability and supervision in information permission
control.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 99
Process of Trade Secret and Information Protection
Confidentiality dimension Confidential scope
· Isolated physical environment
Environment-based confidentiality
· Isolated network environment
· Duties of confidentiality
Personnel
· Confidentiality awareness
· Confidentiality of materials and documents
Customer information
· Sample confidentiality
· Routine confidentiality statement
Assessment improvement · Supervision and assessment by the Company's management
· Continuous improvement
Through continuous cultivation and system building the Company has achieved significant results in information
security and trade secret protection. In 2025 multiple bases of the Company passed ISO 27001 information security
certification with 38.46% of all operating locations certified to the ISO 27001 information security management system
indicating that the Company has developed systematic information security capabilities.Bases that have been certified to the ISO 27001 information security management system (list)
1 Shenzhen Topband Certified
2 Huizhou Topband Certified
3 Topband Vietnam Certified
4 Topband Mexico Certified
5 Topband India Certified84
Meanwhile in the field of trade secret protection the Company continues to deepen special construction. On the basis of
the existing trade secret protection site of Shenzhen Topband Ningbo Topband successfully won the title of "Trade Secret
Protection Site of Ningbo City" in 2024 and obtained a certificate in 2025 for its perfect trade secret protection system solid
control measures and outstanding practical performance fully demonstrating the Company's industry demonstration role in
the field of trade secret protection.Certificate of Business Secret Protection Site of Ningbo
Award Presentation Scene
City in 2025
· Information security risk management
Topband has formulated the Management Measures for Information Emergency Response Plan which define the
emergency response process division of responsibilities disposal standards and review mechanism for information security
emergencies providing solid institutional support for the rapid and efficient disposal of various security incidents. On this
basis the Company deeply integrates core technologies such as vulnerability management and attack surface analysis
innovatively builds a "prediction – defense – response – evolution" full-process dynamic governance system ensuring that
the information security system always operates efficiently and is able to respond to complex network environments and new
security risks.Information Security Risk Management Process
Risk identification Risk prevention Risk management Risk control
Hire a third-party security · Internet access behavior · R&D personnel need approval Deploy backup strategies and
manufacturer to conduct management (AC) prohibits R&D for sending emails and terminal various disaster prevention
penetration tests on key business personnel from uploading files. security software restricts the measures for critical business
systems and Internet exposure · Restrict the use of USB sending of R&D files through systems to ensure business
scan and sort out security interfaces on user terminals. whitelists. continuity
vulnerabilities. · Set password policies for · Promptly promote the repair of
domain control and server
backend requiring passwords to vulnerabilities discovered during
be used for a maximum of 90
days and a minimum of 8 digits
including uppercase and
lowercase letters and numbers.To promptly identify and rectify security risks the Company has established a regular audit and vulnerability detection
mechanism and implements a dual control model of "internal self-inspection + external evaluation". A comprehensive
internal security audit is organized every six months and a third-party professional agency is engaged to conduct a
comprehensive external audit evaluation every year. Security vulnerabilities in the Company's application programs servers
network devices user terminals and other IT assets in all scenarios are subject to regular scanning and penetration testing to
prevent information security risks from the source.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 99
In the field of supply chain security control Topband extends the information security requirements to the entire supply
chain. The Company implements an annual information security evaluation system for its partner suppliers strictly adheres to
institutional documents such as the Supplier Information Security Annual Review and the Supplier Security Management
Regulations conducts comprehensive evaluations in multiple dimensions and accurately controls suppliers' information
security performance. For third-party partners the Company regards information confidentiality as one of the core conditions
for cooperation access and requires them to sign exclusive confidentiality agreements defining confidentiality obligations
liabilities for breach and compensation rates for information leakage and legally constraining the behavior of partners.· Information security training
The Company attaches great importance to the development of the awareness of information security among all
employees incorporates information security training into the regular training system and regularly organizes all employees
to participate in quarterly information security special training. The training covers core modules and through diverse forms
such as case explanation scenario simulation and online assessment and helps all employees deeply understand the
importance of information security work and proficiently master necessary information security knowledge and practical
skills. In the new employee training curriculum the Company has included Basic Application of Information Systems and
Networks as a training theme covering all new employees and forming a comprehensive protective atmosphere that
"everyone values understands and abides by security".Types of Information Security Training
Security knowledge Information security
Network information training on phishing training by the Shenzhen network Specification for anti-
security awareness emails for corporate Huizhou Municipal protection training secret leakage in the use
training mailboxes Bureau of Industry of personal computers
and Information
Technology
Training on Trade Secret Protection and Management Confidentiality Management Training100
Case Strengthen network security training and build a solid information security line of defense
On June 10 2025 Topband and Sangfor Technologies
jointly conducted special training on network security awareness
focusing on the four core aspects of information security
overview situation analysis typical cases and prevention
awareness. The training combines analyzes new trends and new
methods of current network attacks based on various types of
network security cases such as domestic and international
ransomware attacks phishing scams and AI deepfakes.Meanwhile the training provided practical personal protective
measures and emergency response methods for password
management terminal protection and office environment
security comprehensively strengthening the awareness and Network Security Awareness Training in
practical skills of all employees in network security prevention Shenzhen
and reducing the Company's information security risks from the
source.Indicator Unit 2024 2025
Information security and privacy protection training session Session 3 10
Person-time receiving information security and privacy protection
Person-time 100 405
training
Total hours of information security and privacy protection training h 150 805
Number of information security incidents Nr. 0 0Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 101
3.4.2 Customer privacy protection
Topband focuses on the core requirements of global operational data compliance and privacy protection and
comprehensively strengthens customer data security barriers with strict requirements and standards.In response to data compliance and privacy protection needs in global operations Topband strictly adheres to
international and regional data protection regulations such as the European Union's General Data Protection Regulation
(GDPR) and the California Consumer Privacy Act (CCPA) and regards customer data security and privacy protection as the
core focus of winning customer trust and ensuring compliant operations. We have built a compliance protection system that
covers the entire lifecycle of customer data.During the product design stages the Company prioritizes user privacy protection requirements strictly adheres to the
principle of data minimization and collects necessary customer information for business operations only. In addition in order
to ensure users' independent right of choice the Company specifically provides customers and consumers with the "one-click
data sharing shutdown" function clearly informing them of the scope and method of data use and comprehensively
protecting their legitimate rights and interests.In 2025 the Company continued to strengthen its capabilities in data security and network protection. On the one hand
the Company comprehensively implemented sensitive data encryption transmission mechanisms for key business
departments data processing positions and other important aspects; on the other hand the Company optimizes and upgrades
its overall network architecture and strictly implements dual protection measures of physical and logical isolation between
customer production networks and external public networks effectively preventing external network attacks from penetrating
into core production areas. In addition all servers provided by the Company for external services have successfully passed
Class 3 national information security level protection certification meeting industry-leading security protection standards and
further strengthening the network security protection barrier. In 2025 the Company did not experience any incidents of data
security or customer privacy leakage.102
Key Performance Indicators (KPIs)
Environmental issues ▼
Indicator Unit 2024 2025 2023
Total GHG emissions - Shenzhen Plant tCO2e 14839.66 15421.36 13690.03
Total GHG emissions - Huizhou Plant *1 tCO2e 35616.70 28123.96 /
Total GHG emissions - Nantong Plant tCO2e 11810.40 / /
Scope 1: Direct GHG emissions *2 tCO2e 837.65 767.63 123.03
Scope 2: Indirect GHG emissions from
*3 tCO2e 52664.67 42777.69 13567.00energy sources
Scope 3 Other indirect GHG emissions -
tCO2e 8764.44 / /Huizhou Plant
Outsourced goods and services tCO2e 175.39 / /
Capital goods tCO2e 366.83 / /
Fuel and energy-related activities tCO2e 6276.57 / /
Waste generated during operations tCO2e 63.32 / /
Business trips tCO2e 81.56 / /
Employee commuting tCO2e 35.54 / /
Downstream leased assets tCO2e 1765.22 / /
Total GHG emissions *4 tCO2e 62266.76 43545.32 13690.03
Annual total energy consumption MWh 135485.92 129865.79 100971.70
Renewable energy power generation MWh 4542.78 4311.47 2239.00
Gasoline consumption L 80 40 -
Diesel consumption L 23900 107431.72 -
Natural gas consumption m3 144891.00 141846.00 215907.00
Outsourced electricity MWh 129263.91 122997.90 96573.63
Power consumption *5 MWh 133806.69 127309.37 98812.63
Water intake m3 645247 627918 -
Total water consumption m3 645247 627918 516327Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 103
Indicator Unit 2025 2024 2023
No wastewater No wastewater No wastewater
Total discharge of pollutants in water MT
discharged discharged discharged
Total amount of non-hazardous waste
MT 1121.66 2639.78 -
generated
Total amount of waste disposed of MT 3033.01 3143.49 2758.45
Total weight of hazardous waste disposed
MT 1044.87 938.78 933.45
of
Total weight of nonhazardous waste
MT 1988.14 2204.71 1825.00
disposed of
Chemical leakage accident Time 0 0 0
100% up to 100% up to
Disposal of hazardous waste % 100% up to standard
standard standard
Up-to-standard noise emissions at the 100% up to 100% up to
% 100% up to standard
factory boundary standard standard
100% up to 100% up to
Industrial exhaust emissions % 100% up to standard
standard standard
100% up to
Sulfur dioxide emission compliance rate % 100% up to standard -
standard
100% up to
Nitrogen oxide emission compliance rate % 100% up to standard -
standard
Particulate matter emission compliance 100% up to
% 100% up to standard -
rate standard
Total amount of recycled raw materials MT 118.842 *6 4.507*7 /
Amount of recycled packaging materials Nr. 995716*8 105422*9 /
Consumption of packaging materials Nr. 127944495*10 / /
Consumption intensity of packaging Nr./RMB 10000 of output
110.59//
materials value
*1: In 2025 the Company added statistics and accounting for Scope 3 carbon emissions.*2: In 2025 the scope of statistics of this indicator was further expanded with the Nantong Plant added on the basis of the existing Shenzhen and Huizhou
Plants.*3: In 2025 the scope of statistics of this indicator was further expanded with the Nantong Plant added on the basis of the existing Shenzhen and Huizhou
Plants.*4: In 2025 the scope of statistics of this indicator was further expanded with the Nantong Plant added on the basis of the existing Shenzhen and Huizhou
Plants; and statistics and accounting for Scope 3 carbon emissions were added.*5: Updated calculation method in 2025: Electricity consumption = outsourced electricity + generated power output; among them "generated power output"
refers specifically to "renewable energy generation".*6: This is the tin slag recycling data covering the Ningbo base New Energy Business Unit (including Nantong data) Vietnam base Electrics Business Unit
Shenzhen Microelectronics Huizhou Microelectronics Electric Control Business Unit Romania base and Mexico base.*7: This is the tin slag recycling data covering the Ningbo base Electrics Business Unit Shenzhen Microelectronics Huizhou Microelectronics and
Electrical Control Business Unit.*8: The scope of statistics includes Ningbo base New Energy Business Unit (including Nantong data) Vietnam base Electrics Business Unit Shenzhen
Microelectronics Huizhou Microelectronics Electric Control Business Unit Romania base and Mexico base
*9: The scope of statistics includes Ningbo Base Electrics Business Unit Shenzhen Microelectronics Huizhou Microelectronics and Electrical Control
Business Unit.*10: The consumption of packaging materials of the current year is calculated based on the total inventory of the current period.104
Social issues ▼
Indicator Unit 2025 2024 2023
R&D headcount Person 2138 2178 2004
Proportion of R&D personnel % 16.19 18.75 21.50
RMB hundred
R&D investment 10.47 9.52 8.34
million
Proportion of R&D input % 9.45 9.07 9.28
Patents obtained (including foreign patents) Nr. 278 305 351
Total number of employees Person 13208 11617 9323
Percentage of female employees in the total
%42.3442.6441.46
number of employees of the Company
Percentage of female holding senior management
%22.5912.515.92
posts
Percentage of female directors % 0 0 0
Total number of employees aged 30 and below Person 5513 4834 -
Total number of employees aged 30 to 50 Person 7511 6653 -
Total number of employees aged 50 and above Person 184 130 -
Number of full-time contract employees Person 13188 11521 -
Number of full-time dispatched employees Person 0 934 -
Total number of new employees Person 8949 9350 -
Employment rate of new male employees % 41.07 47.23 -
Employment rate of new female employees % 45.60 47.12 -
Employment rate of new employees aged 50 and
%30.0412.69-
above
Employment rate of new employees aged 30 to 50 % 32.48 35.98 -
Employment rate of new employees aged 30 and
%54.9159.48-
below
Employment rate of new employees working in
%30.2542.93-
the Chinese mainland
Employment rate of new employees working in
%66.4166.75-
Hong Kong Macao Taiwan and overseas
Employee turnover rate % 36.41 37.15 -
Male employee turnover rate % 34.01 38.35 -
Female employee turnover rate % 39.41 35.41 -
Turnover rate of employees aged 50 and above % 17.49 20.15 -Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 105
Indicator Unit 2025 2024 2023
Turnover rate of employees aged 30 to 50 % 29.83 31.72 -
Turnover rate of employees aged 30 and below % 44.00 43.11 -
Turnover rate of employees working in the
%28.7238.27-
Chinese mainland
Turnover rate of employees working in Hong
%50.3831.98-
Kong Macao Taiwan and overseas
Percentage of employees who cover the formal
election of employee representatives in all % 93 26*2 32*3
employees of all regions *1
Days of employee maternity leave Day 178 178 178
Hours of employee breastfeeding leave h/day 1 1 1
Total number of employees entitled to parental Male/2885 Male/2780 Male/2348
Person
leave by gender Female/2947 Female/2839 Female/2424
Total number of employees taking parental leave Male/389 Male/373 Male/297
Person
by gender Female/237 Female/177 Female/245
Total number of employees who return to work Male 387 Male/333 Male/271
during the Reporting Period after parental leave Person
by gender Female/212 Female/136 Female/165
Return rate of employees on parental leave by Male/99.49% Male/95.59% Male/91.25%
%
gender Female/89.45% Female/92.19% Female/67.35%
Newcomer
Newcomer training
training involves Newcomer training
involves a course on
Total hours of the Company's training related to a course on involves a course on
human rights 2
human rights policies or procedures and h; % human rights 2 human rights 2
h/session
percentage of employees covered h/session h/session approximately
approximately 24
approximately 24 24 h/year in total.h/year in total.h/year in total.Covering 100% Covering 100% Covering 100%
employees employees employees
Percentage of workplaces where the Company
has conducted employee health and security risk % 100 77.78 100
assessment in all workplaces
Number of plants where the Company has
conducted employee health and safety risk Nr. 8 7 -
assessments
Percentage of all employees at all locations who
%100100100
are represented by a health and safety committee
Number of employees at key and special posts
%36.15100100
undergoing physical examinations
Number of occupational hazard factor detections
conducted in places involving occupational Times/year 8 Not applicable 2
hazards
Number and rate of fatalities due to workplace
Person; % 0; 0 0; 0 0; 0
injuries106
Indicator Unit 2025 2024 2023
Number and rate of workplace injuries
Person; % 0; 0 0; 0 0; 0
(excluding fatalities) with severe consequences
Number of recordable work-related injuries Person 37 6 7
Number of working days lost due to work-
Day 1183.5 364 -
related injuries
Number of deaths caused by work-related health
Nr. 0 0 0
issues
Number of recordable cases of work-related
Nr. 0 0 0
health issues
Amount of investment in work-related injury
RMB ten
insurance and workplace safety liability 597.11 461.22 -
thousand
insurance
Total hours of safety training h 744.5 884 -
Total person-time receiving safety training Person-time 23514 7944 -
Number of new recruits attending the induction
Person 8949 9350*4 -
training
Percentage of employees participating in
%67.7541.4692.40
orientation training
Achievement rate of safety education for new
%100100100
employees
Number of employees certified for qualifications Person 848 923 1470
Number of core key personnel covered by IDP
Person 425 More than 200 1260
(Individual Development Plan)
Percentage of employees who have accepted
regular performance and career development % 100 100 100
assessment in all employees in all regions
Percentage of employees who have accepted
relevant vocational or skill training in all % 100 100 100
employees in all regions
Percentage of employees who have accepted
diversity discrimination or harassment training % 100 100 100
in all employees in all regions
Person-time of Person-time of
Number of participants and hours of skill Person-time of 4200
Person; h 12960 11842
training for professional posts Approx. 34400 h
172842 h 147852 h
Number of management skills training sessions
Session 10 6 9
conducted by the Company
Number of skill training sessions conducted
Session 1365 929 499
within each department
Employee training person-times Person-time More than 20000 More than 20000 More than 20000
Investment in employee training RMB Approx. 2 million Approx. 2 million Approx. 2 million
Total employee training hours h Approx. 170000 Approx. 160000 Approx. 140000
Average employee training hours h 12.62 10 13Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 107
Indicator Unit 2025 2024 2023
The number of The number of
Average training hours of employees by gender average training average training The number of average
and category h hours for female hours for female training hours for femaleemployees is employees is about employees is about 12 h;
about 13 h; 13 h;
The number of The number of
average training average training The number of average
hours for male hours for male training hours for male
employees is employees is about employees is about 14.5
about 12 h; 12 h; h;
The number of The number of
average training average training The number of average
hours for hours for training hours for
professionals is professionals is professionals is about 14
about 13 h; about 14 h; h;
The number of
average training The number of
hours for average training
The number of average
managers is hours for managers
training hours for
managers is about 9 h;
about 8 h; is about 8 h;
Percentage of total employees of workers from
ethnic minorities minority groups and
vulnerable groups (for example disabled person) % 9.75 22.42 0.23
*5
Gap of average remuneration both male and
female (percentage of average total hourly wage % 80.23 74.94 76
of female employees in that of male employees)
Minimum number of weeks that the Company
notifies employees and their representatives in
advance before implementing major operational Week 1 1 1
changes that may have a significant impact on
the Company and employees
Total number of employee proposals received by
the "Employee Experience Platform" Nos. 300 545 475
Number of holding of "employee communication
meetings" Time 4 10 7
Number of employee feedback issues resolved
through "employee communication meetings" Nr. 39 248 54
Total number of suppliers (at the end of the
Reporting Period) Nr. 1731 2224 -
Number of suppliers in the Chinese mainland (at
the end of the Reporting Period) Nr. 1532 2031 -
Number of suppliers in Hong Kong Macao and
overseas regions (at the end of the Reporting Nr. 199 193 -
Period)
Total number of new suppliers Nr. 77 862 -
Percentage of target suppliers who have signed
the Sustainable Purchase Charter/Supplier Code % 100% for target
of Conduct suppliers
100100
Percentage of suppliers signing contracts that
include environment labor and human rights % 100% for targetsuppliers 100 100requirements
Percentage of target suppliers who have
subjected to assessment of corporate social % 100% for target 100 100
responsibility (CSR) suppliers
Percentage of target suppliers who have
subjected to on-site audit of corporate social % 100% for target 100% for official
responsibility (CSR) suppliers
100 manufacturers
Percentage of purchasers who have received
sustainable purchase training in all regions % 100 100 100
Proportion of spending on local suppliers % 68 70 39.30
New manufacturers selected according to
environmental standards % 40 86 -
Percentage of new suppliers selected according 100% for target 100% for target 100% for official
to environmental standards % manufacturers suppliers suppliers108
Indicator Unit 2025 2024 2023
Number of manufacturers that have conducted
Nr. 110 105 72
EIA
Number of suppliers identified as having actual
and potential significant negative impact on the Nr. 0 0 0
environment
Percentage of suppliers identified as having
actual and potential significant negative impact
%000
on the environment and approved for
improvement after assessment
Percentage of suppliers identified as having
actual and potential significant negative impact
%000
on the environment and approved for
improvement after assessment
New manufacturers selected according to social
Nr. 40 86 -
standards
Percentage of new suppliers selected according 100% for target 100% for target 100% for official
%
to social standards manufacturers suppliers suppliers
Number of manufacturers that have conducted
Nr. 110 105 -
SIA
Number of suppliers identified as having actual
and potential significant negative impact on the Nr. 0 0 0
society
Percentage of suppliers identified as having
actual and potential significant negative impact
%000
on the social and approved for improvement
after assessment
Percentage of suppliers identified as having
actual and potential significant negative impact
%000
on the social and approved for improvement
after assessment
Total investment of the Company in volunteer RMB ten
0.792-
activities thousand
Number of employees participating in volunteer
Person 64 72*6 -
activities
Total hours of voluntary services provided by
h 547 639.5*7 -
employees
Average hours of voluntary services provided by
h 8.55 8.88*8 -
employees
Fund invested by the Company to support public RMB ten
12.937-
welfare charity and rural revitalization thousand
*1: Calculation method: number of employees that can be represented by an independent trade union/all employees.*2: Last year's calculation method has been corrected.*3: Last year's calculation method has been corrected.*4: Last year's calculation method has been corrected.*5: Including ethnic minorities and vulnerable groups (e.g. disabled people) of the Shenzhen R&D center Huizhou Plant Nantong Plant Ningbo Plant and
other places.*6: Last year's calculation method has been corrected.*7: Last year's calculation method has been corrected.*8: Last year's calculation method has been corrected.Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 109
Governance issues ▼
Indicator Unit 2025 2024 2023
Number of board members Person 7 7 7
Number of independent directors Person 3 3 3
Percentage of independent directors in the
%42.8642.8642.86
Board of Directors
Number of meeting(s) of the Board of Directors
Time 6 12 11
held
Number of general meeting(s) of shareholders
Time 4 3 4
held
Number of meeting(s) held of the Board of
Time /*1 7 7
Supervisors
Number of meeting(s) of the Strategy Committee Time 0 2 0
Number of meeting(s) of the Audit Committee Time 5 5 4
Number of meeting(s) of the Nomination
Time 0 0 1
Committee
Number of meeting(s) of the Salary and
Time 2 2 2
Assessment Committee
Number of Special Meeting(s) of Independent
Time 2 2 Not established
Directors
Ratio of the annual total remuneration of the
highest-earning individual to the annual total % 13.87 14.9*2 16.53
remuneration median of all employees
Ratio of the growth rate of the annual total
remuneration of the highest-earning individual
%8494122
to the growth rate median of the annual total
remuneration of all employees
Reports generated by the whistleblowing
Nr. 25 28 23
program
Corruption incidents Nr. 2 1 2
Total number of incidents where employees from
the Company are dismissed or disciplined due to Nr. 3 4 2
corruption
Total number of incidents where the Company's
contracts with business partners are terminated
Nr. 1 3 5
or not renewed due to violations related to
corruption
Total number of business locations where the
Company has conducted internal audits/risk Nr. 7 10 8
assessments on business ethics issues
Percentage of business locations where the
Company has conducted internal audits/risk
%10010080
assessments on business ethics issues in the total
business locations
Percentage of the Company's anti-corruption
policies and procedures communicated to % 100 100 100
employees
Percentage of the Company's anti-corruption
policies and procedures communicated to % 100 100 100
business partners by the Company
Total number of times of anti-corruption
Time 5 4 -
training provided
Total person-time receiving anti-corruption
Person-time 1287 980 -
training
Number of directors receiving anti-bribery and
Person 4 7 7
anti-corruption training110
Indicator Unit 2025 2024 2023
Percentage of directors covered by anti-bribery
%57100100
and anti-corruption training
Total number of managers receiving anti-
Person 6 8 -
bribery and anti-corruption training
Percentage of managers receiving anti-
%6666.67-
commercial bribery and anti-corruption training
Number of employees receiving anti-bribery and
Person 1281 972 -
anti-corruption training
Proportion of employees receiving anti-bribery
%9.708.37-7
and anti-corruption training
Total number of regulator members receiving
anti-corruption policies and procedures from the Person 7 7 100
Company
Percentage of the Company's anti-corruption
policies and procedures communicated to % 100 100 -
regulator members
Number of risk management training provided Time 6 20 -
Number of person-time participating in risk
Person-time 346 165 -
management training
Number of compliance training sessions Time 13 34 -
Total hours of compliance training h 18.75 36.6 -
Person-time participating in compliance training Person-time 1133 2202 - 2
Employee coverage of compliance training % 20 18.95 80
Information security and privacy protection
Session 10 3 100
training session
Person-time receiving information security and
Person-time 405 100 0
privacy protection training
Total hours of information security and privacy
h 805 150 25
protection training
Number of information security incidents Nr. 0 0 100
Percentage of business locations certified to the
ISO 27001 information security management % 38.46 50 -
system to all business locations
*1: The Company has cancelled the Board of Supervisors.*2: (Last year's calculation method has been corrected.)Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 111
Index (Shenzhen Stock Exchange GRIs)
Index of the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 17 -
Sustainable Development Report (Trial) ▼
Dimension No. Issue Corresponding terms Report section
Environment Combat with climate1 Combat with climate change Articles 21 to 28
change
2 Pollutant emissions Article 30 Joint ecological protection
3 Waste disposal Article 31 Joint ecological protection
Ecosystem and biodiversity
4 Article 32 Joint ecological protection
conservation
Environmental compliance Environmental compliance
5 Article 33
management management
Efficient utilization of
6 Energy utilization Article 35
resources
Efficient utilization of
7 Utilization of water resources Article 36
resources
Promoting the circular
8 Circular economy Article 37
economy
Society Serving community9 Rural Revitalization Article 39
development
Serving community
10 Social contribution Article 40
development
11 Innovation-driven Article 42 Innovative quality services
12 Science and technology ethics Article 43 Innovative quality services
Collaborative supply chain
13 Supply chain security Article 45
ecosystem
Equal treatment of small and Collaborative supply chain
14 Article 46
medium-sized enterprises ecosystem
Product and service safety and
15 Article 47 Innovative quality services
quality
Data security and customer
16 Article 48 Data security protection
privacy protection
Protection of employee
17 Employees Article 50
rights health and safety
Governance Sound governance
18 Due diligence Article 52 structure and standardized
and compliant operations
Stakeholder
19 Stakeholder communication Article 53
communication
Adhering to business
20 Anti-bribery and anti-corruption Article 55
ethics
Adhering to business
21 Anti-unfair competition Article 56
ethics112
GRI index
GRI
Disclosure items Report section Page
standards
GRI 2: General Disclosures
2-1 Organizational details About the Report 01
2-2 Entities included in organization's sustainability reports About the Report 01
2-3 Reporting period frequency and contact point About the Report 01
2-6 Activities value chain and other business relationships About Topband 07-14
Protection of employee rights
and interests 59-70
2-7 Employees
Key Performance Indicators 102-110
(KPIs)
ESG governance 16
2-9 Governance structure and composition
Sound governance structure 81-86
2-10 Nomination and selection of the highest governance body Sound governance structure 81-86
Role of the highest governance body in overseeing the management of ESG governance 16
impacts Sound governance structure 81-86
ESG governance 16
2-13 Responsibility authorization for management impact
Sound governance structure 81-86
About the Report 01
2-14 Role of the highest governance body in sustainability reporting
ESG governance 16
2-15 Conflict of interest Sound governance structure 81-86
2-19 Remuneration policy Sound governance structure 81-86
2-20 Salary determination procedure Sound governance structure 81-86
2-21 Overall annual remuneration percentage Sound governance structure 81-86
2-22 Statement on sustainable development strategies ESG governance 16
Standardized and compliant
2-25 Procedure for remedying negative effects 86-93
operations
Standardized and compliant
2-27 Compliance with laws and regulations 86-93
operations
2-29 Methods of stakeholder participation Stakeholder communication 20
GRI 3: Material Topics
Process to determine material
3-1 Dual Importance Assessment 17-19
topics
3-2 List of material topics Dual Importance Assessment 17-19
3-3 Management of material topics Dual Importance Assessment 17-19Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 113
GRI
Disclosure items Report section Page
standards
GRI 101: Biodiversity
3-3 Management of material topics Joint ecological protection 34-39
101-2 Biodiversity impact management Joint ecological protection 34-39
101-5 Sites with biodiversity impact Joint ecological protection 34-39
GRI 201: Economic Performance
3-3 Management of material topics About Topband 07-14
201-1 Economic value directly generated and distributed About Topband 07-14
Financial impacts and other risks and opportunities brought about by
201-2 Combat with climate change 27-30
climate change
GRI 202: Market Presence
3-3 Management of material topics About Topband 07-14
GRI 203: Indirect Economic Impacts
Serving community
3-3 Management of material topics 78-79
development
Serving community
203-1 Infrastructure investment and supporting services 78-79
development
GRI 204: Procurement Practices
Collaborative supply chain
3-3 Management of material topics 56-58
ecosystem
Collaborative supply chain
ecosystem 56-58
204-1 Proportion of spending on local suppliers
Key Performance Indicators 102-110
(KPIs)
GRI 205: Anti-corruption
3-3 Management of material topics Adhering to business ethics 94-96
Key Performance Indicators
205-1 Operations assessed for risks related to corruption 102-110
(KPIs)
Adhering to business ethics
Communication and training about anti-corruption policies and 94-96
205-2 Key Performance Indicators
procedures 102-110
(KPIs)
Adhering to business ethics
205-3 Confirmed incidents of corruption and actions taken Key Performance Indicators
(KPIs)
GRI 206: Anti-competitive Behavior
3-3 Management of material topics Adhering to business ethics 94-96114
GRI
Disclosure items Report section Page
standards
GRI 301: Materials
Promoting the circular
3-3 Management of material topics 40-41
economy
Key Performance Indicators
301-1 Weight or volume of materials used 102-110
(KPIs)
GRI 302: Energy
Efficient utilization of
3-3 Management of material topics 31-34
resources
Efficient utilization of
302-1 Energy consumption within the organization 31-34
resources
Efficient utilization of
resources 31-34
302-4 Reduction of energy consumption
Key Performance Indicators 102-110
(KPIs)
Efficient utilization of
302-5 Reductions in energy requirements of products and services 31-34
resources
GRI 303: Water and Effluents
Efficient utilization of
3-3 Management of material topics resources
Joint ecological protection
Efficient utilization of
303-1 Interaction between the organization and water (shared resources) resources
Joint ecological protection
Efficient utilization of
303-2 Management of drainage-related impacts resources
Joint ecological protection
Key Performance Indicators
303-3 Water intaking 102-110
(KPIs)
Joint ecological protection
304-4 Drainage Key Performance Indicators
(KPIs)
Key Performance Indicators
304-5 Water consumption 102-110
(KPIs)
GRI 305: Emissions
3-3 Management of material topics Combat with climate change 27-30
Combat with climate change
305-1 Direct (Scope 1) GHG emissions Key Performance Indicators
(KPIs)
Combat with climate change
305-2 Energy indirect (Scope 2) GHG emissions Key Performance Indicators
(KPIs)
Combat with climate change
305-3 Other indirect (Scope 3) GHG emissions Key Performance Indicators
(KPIs)
GRI 306: Waste
3-3 Management of material topics Joint ecological protection 34-39
303-1 Waste generation and significant waste-related impacts Joint ecological protection 34-39Practicing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 115
GRI
Disclosure items Report section Page
standards
306-2 Management of significant waste-related impacts Joint ecological protection 34-39
Joint ecological protection
306-2 Waste generated Key Performance Indicators
(KPIs)
Joint ecological protection
306-5 Waste to be disposed of Key Performance Indicators
(KPIs)
GRI 308: Supplier Environmental Assessment
Collaborative supply chain
3-3 Management of material topics 56-58
ecosystem
Collaborative supply chain
ecosystem 56-58
308-1 New suppliers selected according to environmental evaluation
Key Performance Indicators 102-110
(KPIs)
Collaborative supply chain
308-2 Negative environmental impacts in the supply chain and actions taken 56-58
ecosystem
GRI 401: Employment
Protection of employee rights
3-3 Management of material topics 59-70
and interests
Key Performance Indicators
401-1 Employment rate of new employees and employee turnover rate 102-110
(KPIs)
Benefits provided to full-time employees that were not provided to Protection of employee rights
401-259-70
temporary or part-time employees and interests
Protection of employee rights
and interests 59-70
401-3 Parental leave
Key Performance Indicators 102-110
(KPIs)
GRI 402: Labor/Management Relations
Protection of employee rights
3-3 Management of material topics 59-70
and interests
Key Performance Indicators
402-1 Minimum notice periods regarding operational changes 102-110
(KPIs)
GRI 403: Occupational Health and Safety
3-3 Management of material topics Health and safety protection 71-77
403-1 Occupational health and safety management system Health and safety protection 71-77
403-2 Hazard identification risk assessment and incident investigation Health and safety protection 71-77
403-3 Occupational health services Health and safety protection 71-77
Worker participation consultation and communication on
403-4 Health and safety protection 71-77
occupational health and safety
Health and safety protection
403-5 Worker training on occupational health and safety Key Performance Indicators
(KPIs)
403-6 Promotion of worker health Health and safety protection 71-77
Prevention and mitigation of occupational health and safety impacts
403-7 Health and safety protection 71-77
directly linked by business relationships116
GRI
Disclosure items Report section Page
standards
Health and safety protection
Workers covered by an occupational health and safety management 71-77
403-8 Key Performance Indicators
system 102-110
(KPIs)
Key Performance Indicators
403-9 Work-related injuries 102-110
(KPIs)
Key Performance Indicators
403-10 Work-related ill health 102-110
(KPIs)
GRI 404: Training and Education
Protection of employee rights
3-3 Management of material topics 59-70
and interests
Key Performance Indicators
404-1 Average hours of training per year per employee 102-110
(KPIs)
Programs for upgrading employee skills and transition assistance Protection of employee rights
404-259-70
programs and interests
Percentage of employees receiving regular performance and career Key Performance Indicators
404-3102-110
development reviews (KPIs)
GRI 405: Diversity and Equal Opportunity
Protection of employee rights
3-3 Management of material topics and interests
Sound governance structure
Protection of employee rights
and interests 59-70
405-1 Diversity of governance bodies and employees Sound governance structure 81-86
Key Performance Indicators 102-110
(KPIs)
Protection of employee rights
Ratio of basic salary and remuneration of male employees to female and interests 59-70
employees Key Performance Indicators 102-110
(KPIs)
GRI 406: Non-discrimination
Protection of employee rights
3-3 Management of material topics 59-70
and interests
Protection of employee rights
406-1 Incidents of discrimination and corrective actions taken 59-70
and interests
GRI 407: Freedom of Association and Collective Bargaining
Protection of employee rights
3-3 Management of material topics 59-70
and interests
GRI 408: Child Labor
Protection of employee rights
3-3 Management of material topics 59-70
and interests
GRI 409: Forced or Compulsory Labor
Protection of employee rights
3-3 Management of material topics 59-70
and interests
GRI 413: Local Communities
Serving community
3-3 Management of material topics 78-79
developmentPracticing Green Development and Innovation-oriented Development and Being Compliant to Ensure
Promoting Ecological Harmony Value Co-creation by Employees Steady Development Topband ESG Report 2025 117
GRI
Disclosure items Report section Page
standards
GRI 414: Supplier Social Assessment
Collaborative supply chain
3-3 Management of material topics 56-58
ecosystem
Collaborative supply chain
ecosystem 56-58
414-1 New suppliers selected according to social standards
Key Performance Indicators 102-110
(KPIs)
Collaborative supply chain
414-2 Negative social impacts in the supply chain and actions taken 56-58
ecosystem
GRI 416: Customer Health and Safety
3-3 Management of material topics Innovative quality services 43-56
416-2 Violations involving health and safety impacts of products and services Innovative quality services 43-56
GRI 417: Marketing and Labeling
3-3 Management of material topics Innovative quality services 43-56
417-1 Requirements for product and service information and labeling Innovative quality services 43-56
417-2 Violations involving product and service information and labeling Innovative quality services 43-56
GRI 418: Customer Privacy
3-3 Management of material topics Data security protection 97-101
Data security protection
Substantiated complaints involving invasion of customer privacy and 97-101
418-1 Key Performance Indicators
loss of customer data 102-110
(KPIs)BUILDING AMORE INTELLIGENT AND LOW-CARBONWORLD
Shenzhen Topband Co. Ltd.Topband Industrial Park Shiyan Sub-
district Bao'an District Shenzhen China Stock code: 002139.SZ
Email: topband@topband.com.cn Tel: 0755-2765 1888
www.topbandcom.cn
Official Douyin
Topband Account Video Account Account LinkedIn
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