2025

EnvironmentalSocial and

Governance Report

Hangzhou GreatStar Industrial Co. Ltd. stock code：contents

About This Report Compliant Governance Environmental Management

Message from the Management Governance Empowerment

Low-Carbon Leadership

About Us Consolidating the Foundation for Co-Drawing a Green Blueprint

Sustainability 02

ESG Management

Corporate Governance 15 Environmental Compliance Management 29

Business Ethics 19 Pollutant Emissions and Waste Treatment 32

Data Security and Customer 21 Energy Utilization 37

Privacy Protection

Equal Treatment of Small and 26 Water Resources Utilization 39

Medium-sized Enterprises

Circular Economy 41

Addressing Climate Change 42

Social Development

Social Inclusivity

Co-creating Value 03

Innovation-Driven Growth 49

Product and Service Safety and Quality 54

Sustainable Supply Chain 65

ESG Performance Data Sheet

Employees

Indicator Index Table 71

Reader’s Feedback Form Contributing to Social Benefits 84

CONTENTSHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

About This Report Designations

Report Description Abbreviation Company Name

Lianhe Electrical Hangzhou Lianhe Electrical Equipment Manufacturing Co. Ltd.This Report is the third ESG report issued by Hangzhou GreatStar Industrial Co. Ltd. (hereinafter referred to as “GreatStar”

the “Company” or “we”). It systematically presents the Company’s practices and performance in the economic environmental

social and governance fields in 2025. We expect to further enhance communication and build consensus with our stakeholders Hangzhou GreatStar Tools Hangzhou GreatStar Tools Co. Ltd.through this Sustainability Report and jointly promote the Company’s sustainable development process.Zhejiang GreatStar Tools Zhejiang GreatStar Tools Co. Ltd.Basis of Preparation OLEI Hangzhou OLE-Systems Co. Ltd.Shiwanke Zhejiang Shiwanke Electrical Appliance Co. Ltd.Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implemen-

tation) (hereinafter referred to as the “ Guidelines”)

Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report (2026

Revised Version)

UN Sustainable Development Goals (SDGs)

GRI Sustainability Reporting Standards (GRI Standards) released by the Global Reporting Initiative (GRI)

ISO 26000:2010: Guidance on Social Responsibility released by the International Organization for Standardization (ISO) Assurance of Report Reliability

The Company guarantees that the content of this Report is true accurate and complete without any false records misleading

statements or significant omissions and is responsible for the authenticity completeness and accuracy of its content.Reporting Boundaries

Public Availability

This Report covers the period from January 1 to December 31 2025 which is moderately extended backwards or forwards as the

case may be to enhance the comparability and foreseeability of disclosures.This Report is available in electronic format for your reading. You may access or download it at the official website of Shenzhen

Stock Exchange (www.szse.cn) or the Company’s official website (www.greatstartools.com).Sources of Data and Information

The information and data covered in this Report are sourced from the official internal documents statistical reports and annual

reports of GreatStar; the raw data from the Company’s business operation; data disclosed by government agencies; annual

financial data; internal statistical reports; third-party questionnaire surveys; third-party evaluation interviews etc. The financial

data in this Report are presented in RMB Yuan. In case of any inconsistencies with the annual financial report the financial report

shall prevail. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Message from the Management

Low-Carbon Leadership Green Development

2025 is a pivotal year for GreatStar as it deepens its presence in the tool industry and puts sustainable development concepts into At the green development level we actively respond to the national "dual-carbon" strategy comprehensively advance environmen-

practice. Leveraging its global footprint and full-industry-chain advantages the Company has deeply integrated ESG concepts tal compliance management pollutant control efficient resource utilization and circular economy practices. Through measures

into the entire process of strategic planning production operations technological innovation and supply chain management such as energy-saving retrofits solar power construction and low-carbon supply chain development we have steadily promoted

achieving high-quality development while earnestly fulfilling its social responsibilities. carbon reduction efforts and successfully obtained SBTi certification protecting the ecological environment with concrete actions

and co-drawing a blueprint for green development.Governance as the Foundation: Enabling Steady and Long-Term Progress Joining Hands with All Parties to Build the Future Together

At the corporate governance level we adhere to the bottom line of compliant operations continuously improve the governance At the social responsibility level we adhere to innovation-driven development focus deeply on product quality and safety and

structure strengthen internal control management and business ethics strictly safeguard data security and customer privacy and build a responsible and resilient sustainable supply chain. We always uphold the "people-oriented" philosophy protecting employ-

protect the legitimate rights and interests of all shareholders and stakeholders through a transparent standardized and efficient ees' legitimate rights and interests improving the career development system safeguarding occupational health and safety and

governance system thus consolidating the institutional foundation for the Company's steady and long-term progress. enabling every employee to achieve value growth at GreatStar. At the same time we actively engage in social welfare fulfill our

responsibilities as a corporate citizen and join hands with communities and the industry to create and share development

achievements.Standing at a new starting point for development global competition and industry transformation bring new opportunities and

challenges. GreatStar will advance the construction of its ESG management system to higher standards continuously deepen

green transformation strengthen innovation leadership safeguard employee well-being empower sustainable supply chain devel-

opment drive long-term corporate development with the power of responsibility and contribute to industry progress and social

prosperity through concrete actions and commitment. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

About Us Organizational Structure

Chairman of

the Board

Company Profile

Founded in 1993 Hangzhou GreatStar Industrial Co. Ltd. (Stock Code: 002444) was listed on the Shenzhen Stock Exchange in President

July 2010 and is a world-leading tool manufacturer. The Company’s products cover hand tools power tools pneumatic fastening

tools laser measuring tools laser radar tool cabinets industrial storage cabinets industrial vacuum cleaners etc. It owns a

number of world-renowned long-established tool brands including ARROW PONY & JORGENSEN Goldblatt Lista BeA Shop-Vac

and SK. The Company has 23 production bases globally with a workforce of over 10000 employees. The Company has 5 major

President’s Office

R&D centers around the globe and possesses great R&D and design capabilities. It has been recognized as a National-Level

Intellectual Property Demonstration Enterprise and a National-Level Industrial Design Center. The Company has set up sales

channels covering the globe directly serving large-scale chain supermarkets of building materials hardware general goods auto

parts as well as various industrial consumers. It is a partner to many professional tool brands and relying on domestic and foreign

e-commerce platforms directly offers high-quality full-range products to end users worldwide.Export Center Product Center

Corporate Culture

Mission Vision

Lead technological Build a century-old

advancement in tools brand achieve a

become the benchmark century-old enterprise.for industry innovation.Value Culture Philosophy Hand/Mechanical Tools Power/Pneumatic Tools Laser Measurement/LiDAR

Details determine Customer ContinuousFirst Improvement

success or failure.Team Innovation

Collaboration and Mutual Benefit Cabinet & Storage Professional Vacuum Labor Protective

Equipment Equipment Equipment

Company’s Main Products

Information

Domestic E-com-

merce Department

Own Brands

Toomall

Quality Control

Center

Product Third

Center

Product

Second Center

Product First

Center

Procurement

Center

Marketing

Department

E-commerce

Center

Brand Center

North America

A Center

Export

Second

Export

First

Administrative

Center

Financial Center

Securities

InvestmentHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Industrial Layout History

The Company has 23 manufacturing bases globally spread across Europe the United States Southeast Asia and China forming

a global production capacity network covering major markets.

GreatStar International Acquired the high-preci- Acquired Scruffs a Acquired Zhongshan Jilong

Europe E-commerce received the sion measuring tool well-known UK brand of further enhancing the

6 production bases Amazon “Decade Partner- business TESA Group workwear and protective Company’s market share in theship Long-Term Winning from Switzerland equipment to develop global storage cabinetBrand” award;passed the expanding the high-pre- personal workwear products; business;

High-Tech Enterprise cision measuring Won honors including US The Southeast Asian bases

reexamination. instrument product Home Depot's Best Supplier of have all been put into

matrix. the Year and Lowe's Supplier operation and the production

Award earning recognition capacity layout in Southeast

USA China from a wide range of interna- Asia has taken initial shape.

3 production bases 11 production bases tional customers.

Southeast Asia

Acquired LISTA a renowned GreatStar received three The Company was Acquired the stapling

3 production bases

European storage cabinet major honors recognized as a business of BeA a topmanufacturer; including “China Hardware National High-Tech European fastening toolofficially entered the tool & Electromechanical Enterprise; brand to strengthen its

cabinet and storage field. Industry Most Influential acquired SHOP-VAC power tools layout.Enterprise”. assets to enter the

power tools field.Development Strategy

Focus on core businessGreatStar Industrial Received the title Acquired Changzhou Received the “Laboratorycontinuously enhance competitiveness. Drive performance growth through both organic growth and external acquisitions. Design Center approved of “National Intellectual Huada Kejie a Accreditation Certificate”

as a National Industrial Property Demonstration renowned laser from CNAS.Innovative Products Design Center; Enterprise”; measurement

acquisition of US-based first established products company;

Continuously research develop and upgrade existing products further expand the leading position in the industry guide ARROW initiated the cross-border store officially entered the

the development of the international tool industry and gradually take over the industrial transfer in the current innovation path to global layout. WorkPro on Amazon. laser measuring

economy era centered on creating customer needs from Europe and the United States in the future. tools field.Operate Brands

Continuously cultivate internationally renowned tool brands simultaneously expand e-commerce brands for the new era

and strengthen the own-brand service system in Europe and America. Leveraging the stable cash flow characteristics of

the durable consumer goods industry the Company will plan its own-brand development path with a long-term perspective

and steadily enhance brand value.The Company’s Established headquarters Founded the first DIY Successfully listed on

predecessor GreatStar packaging and logistics home improvement the Shenzhen Stock

Global Layout Tools Co. Ltd. was center in Hangzhou. hand tool brand. Exchange.established.Strategic Overseas Development. Focus on building own-brand service systems in Europe and America and capacity layout

in Southeast Asia. Pursue both e-commerce growth and own-brand growth to steadily increase the proportion of

direct-to-consumer revenue. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

2025 Key Events

Recognized as a "Pilot Enterprise"

Selected as one of the third batch of "Eagle

among Zhejiang Private Multina-

Enterprises" (Industry and Information

Receives Wind ESG Rating A tional Corporations for 2025

Technology field) in Zhejiang Province

announced by Hangzhou Municipal

announced by Zhejiang Provincial Department

Bureau of Commerce

of Economy and Information Technology

Received the "Decade Partnership Named to the 2025 Top 500

Long-Term Winning Brand" award at National Zhejiang Entrepreneurs Named to the 2025 Top 500 Chinese

the 2025 Amazon Global Selling list published by Zhejiang Private Enterprises in Internationaliza-

Cross-border Summit Entrepreneurs Magazine

Named to the 2025 Top 500 Private Recognized as a 2025 Zhejiang

Enterprises in Invention Patents list

Receives EcoVadis Bronze Medal Provincial Economic Manage-

published by the All-China Federation of ment Benchmark Enterprise

Industry and Commerce

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

ESG Management Analysis of Double Materiality Topics

In order to more accurately respond to the expectations and demands of all parties and enhance the professionalism relevance and

As one of the leading enterprises in the tool industry GreatStar adheres as always to its original intention focusing on expanding materiality of the Report the Company invited internal and external stakeholders to participate through industry benchmarking and

its core business and improving its professional and technological capabilities continuously contributing to the progress of the expert group discussions to identify and screen the core issues that have both “impact materiality” and "financial materiality" for the

industry. In pursuing high-quality development the Company actively fulfills its social responsibilities and is committed to achiev- Company's environmental social and governance (ESG) activities. This Report will focus on disclosing the relevant issues thereby

ing the integration of economic and social value. At the governance level the Company continuously improves its governance clarifying the direction and laying the foundation for the construction of the Company's sustainable development system.structure integrating sustainable development concepts into strategic planning risk management and daily operations. In the

environmental aspect the Company actively promotes the R&D and application of energy-saving and environmental protection

technologies responding to the “dual-carbon goals” with practical actions. In the social field the Company actively responds to Understand Background Identify Issues Assess and Prioritize Confirmation and Disclosure

national calls leverages its professional capabilities to support cultural heritage and social welfare integrates corporate growth

with social development and joins hands with all parties to create a sustainable future. In 2025 the Company received the

EcoVadis Bronze Medal and a Wind ESG Rating A demonstrating sound ESG management capabilities.Comprehensively sort Based on industry Identify double materiality Combine management

out the company's trends policy require- assessment results opinions to confirm or

Communication with Stakeholders business activities ments and stakeholder through industry adjust materiality issue operational models input initially form an benchmarking expert results.and value chain issue library covering discussions and internal Key disclosures in the

GreatStar attaches great importance to communication and exchange with all internal and external stakeholders of the Company. relationships environmental social and external research. annual ESG report

By actively establishing a regular communication mechanism it deeply understands the demands and expectations of various and governance Integrate assessment according to the require-

stakeholders makes timely adjustments according to the communication results strives for the trust and support of all parties dimensions. results to form a double ments of the Exchange's

and promotes the continuous improvement of ESG management work. materiality matrix. "Guidelines."

Flow chart of issue materiality analysis

Stakeholders Expectations and Demands Communication and Responses Environmental Issues

Social Issues

Shareholders and Economic Compliance General Meetings Performance Risk Control of Shareholders Financial Reports Governance Issues

Senior Manage-

Corporate Protection of Shareholders’ Rights Performance Announcement ment Governance and Interests Briefings Releases

Promote Environmental Regular Communica- Policy Implemen-

Government and Employment Management tion and Reporting tation

Regulatory Agencies Respond to Comply with Laws Institutional Assume Social

National Policies and Regulations Research Responsibilities

Innovation and Fair and Just Comply with Contrac- Supplier Training

R&D Procurement tual Agreements

Partners and Suppliers Mutual Benefit Business Ethics Industry Conferences Advocate Green

and Win-Win Supply Chain

Supply Chain Account- Strategic Cooperation

able Management

Employee Rights and

Benefits Strengthen Democratic Employee Management Training

Employees Employee Develop-

ment and Training Optimize Compen- Low Financial materiality to GreatStar High

Employee Activities sation and

Occupational Health and Benefits System GreatStar Double Materiality Matrix

Innovation and R&D Strict QualityMan- Improve Customer

agement Service System

Product and Service Product Safety Customer Satisfac- Environment Society GovernanceCustomers Quality Assurance Testing tion Survey

Addressing Contributing to Data Security and Communication with

Customer Privacy Increase R&D Climate Change Social Benefits Customer Privacy Stakeholders

and Data Security Investment Pollutants and Protection Innovation-Waste Treatment Driven Growth Equal Treatment of Compliance Internal

Ecological and Transparent Regular Informa- Promote Green

Environmental Compliance

Small and Medium- Control

Environmental Information tion Disclosure Production and Management Supply Chain Sized Enterprises

Communities Public Protection Disclosure Green Office SecurityCommunity Energy Utilization Anti-commercial ESG Management

and Media etc. Community Welfare Strengthen Volunteer Activities Establish GreatStar Employees Bribery and Anti-

Communica- Foundation Water Resources corruption

Investor Relations Social Welfare Utilizationtion and Product and Service

Management Exchange Projects Circular Economy Safety and Quality Corporate Governance

High Impact materiality on econo-

my society and environment0Complian1t Governance

Governance Empowerment

Consolidating the Foundation

for Sustainability

The Company always strictly follows relevant laws regulations and regulatory

requirements continuously improves its corporate governance system

adheres to the bottom line of compliant operation and protects the

legitimate rights and interests of all shareholders and various stakeholders

through standardized transparent and robust governance operations. The

Company carries out governance practices around core dimensions such as

standardized governance business ethics and data security continuously

improving governance effectiveness and promoting long-term and stable

development.Our Actions

Corporate Governance

Business Ethics

Data Security and Customer Privacy Protection

Equal Treatment of Small and Medium-sized Enterprises

SDGs AlignmentHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Corporate Governance Key Performance

GreatStar always adheres to standardized operation and robust governance strictly following the Company Law of the People’s

During the reporting period the Company held General Meetings of Shareholders and meetings of the Board

Republic of China the Securities Law of the People’s Republic of China the Guidelines on Corporate Governance of Listed Compa-

nies and relevant regulatory requirements. It continuously improves its corporate governance system standardizes the operation of Directors with % attendance of Board members;

of various governance bodies improves information disclosure and investor relations management mechanisms strengthens

The Company convened meetings of the Audit Committee meetings of the Nomination Committee meeting

compliance internal control management and ensures the Company’s sustained and stable operation through standardized and

transparent governance practices. of the Remuneration and Assessment Committee and meeting of the Strategy and Development Committee.General Meeting of Shareholders Board of Directors

and Management Board Diversity

The Company has established a governance structure composed of the General Meeting of Shareholders the Board of Directors

and the Management forming a tiered decision-making mechanism with clear rights and responsibilities coordinated operation During the nomination and selection process for directors the Company comprehensively considers multiple factors such as

and effective checks and balances. Each governance body performs its duties legally and compliantly within its respective scope gender age professional background industry experience and performance capabilities to build a Board team with diverse

of responsibilities jointly ensuring the scientificity and transparency of the Company’s decisions and effectively safeguarding the structure complementary experience and comprehensive professionalism. The diverse composition of the Board provides

legitimate rights and interests of shareholders and other stakeholders. multi-dimensional professional perspectives and suggestions for the Company’s decision-making aiding the Board in scientific

decision-making and ensuring the standardized and efficient operation of corporate governance.GreatStar continuously improves its corporate governance mechanism to effectively protect the

legitimate rights and interests of shareholders. The Company affirms the legal status of the General

Meeting of Shareholders as the highest decision-making body exercising decision-making power

General on significant matters according to law. The Company convenes and holds meetings in strict accor- Key Performance

Meeting of dance with the Company Law of the People’s Republic of China the Articles of Association the

Rules of Procedure for the General Meeting of Shareholders and other relevant regulations ensur-

Sharehold- ing that meeting procedures are legal and compliant and resolutions are scientific and effective. In During the reporting period the Company's Board of Directors comprised members including independent

ers governance practice the Company fully guarantees the equal status of all shareholders (especially

directors accounting for .%; and female directors accounting for .%.minority shareholders) strictly implements shareholders’ rights to know participate and vote on

major matters of the Company and provides sufficient guarantees for them to exercise their

legitimate rights.The Company’s Board of Directors operates in strict accordance with the Company Law of the

People’s Republic of China the Articles of Association the Rules of Procedure for the Board of Investor Relations Management

Directors and other relevant regulations and diligently executes all resolutions of the General

Meeting of Shareholders. It has established the Audit Committee Nomination Committee Remuner-

ation and Assessment Committee and Strategy and Development Committee. The specialized The Company always attaches great importance to investor relations management strictly implements the Information Disclosure

Board of committees provide professional support for the Board’s decision-making ensuring the efficient Management Rules and the Investor Relations Management Rules and continuously promotes the standardized development of

Directors operation of the governance structure. All directors perform their duties in strict accordance with related work. The Company is committed to providing investors with diverse communication channels maintaining regular interac-

relevant laws and regulations attend Board and General Meeting sessions on time diligently partici- tive communication with investors through means such as establishing investor hotlines promptly answering questions on the

pate in decision-making on major Company matters actively participate in training and learning Shenzhen Stock Exchange Interaction Easy Platform (irm.cninfo.com.cn) and regularly holding online performance briefings. The

organized by regulatory authorities and the Company continuously familiarize themselves with Company continuously strengthens two-way communication and the quality of information disclosure strives to enhance inves-

relevant laws and regulations and constantly improve their performance capabilities and profession- tors’ understanding of the Company’s value and strategic recognition and consistently improves the Company’s credibility in the

al competence. capital market. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Information Disclosure

GreatStar strictly follows the Securities Law of the People’s Republic of China the Measures for the Administration of Information

Disclosure by Listed Companies and relevant business rules of the Shenzhen Stock Exchange and has established and continu-

Principle of Fairness Principle of Objective ously improved its information disclosure management system. The Company has formulated the Information Disclosure Manage-

Openness and Justice True Accurate and

Principle of ment Rules clarifying the basic principles content standards transaction management processes and confidentiality require-Complete Information

Interactivity ments for information disclosure ensuring the standardization of information disclosure work. The Company adheres to the Disclosure

information disclosure principle of being “true accurate complete timely and fair” ensuring equal access to information for all

shareholders. The Company has established an information disclosure transaction management system with clear rights and

responsibilities. The Chairman is the primary responsible person the Board Secretary is the main responsible person and the

Board Office is responsible for the specific affairs of information disclosure.The Company strictly implements the Insider Registration Management Rules limiting the number of insiders to a minimum and

requiring them to sign confidentiality responsibility letters. Before inside information is legally disclosed no insider is allowed to

disclose it or engage in insider trading.Principle of Principle of

Compliance Prudence Internal Control and Compliance

The Company continuously improves its compliance internal control system strictly follows the Basic Norms of Enterprise

Basic Principles of Investor Internal Control and its supporting guidelines and combines the Company’s internal control system and evaluation methods to

Relations Management

conduct a comprehensive evaluation of its effectiveness based on daily supervision and special supervision of internal control.The Company’s internal control system covers key elements such as control environment risk assessment control activities

information and communication and internal supervision. The Company’s Audit Committee and independent directors continu-

ously supervise the implementation of the internal control system through regular meetings and on-site inspections ensuring the

Case Holding Online Performance Briefing to Build the Cornerstone of Investor Trust standardized and effective operation of the internal control system.Control Environment Risk Assessment Control Activities Information Communication Internal Supervision

In April 2025 the Company held the 2024 Annual Online Performance Briefing through an online platform. This event was

open to all institutional and individual investors. The Company’s management had in-depth exchanges with investors The Company focuses The Company has The Company has The Company has The Company has

regarding the annual operating results and future development plans and responded to market concerns. Through this on integrity culture established a regular formulated standard- established an established an

performance briefing the Company safeguarded investors’ right to know and enhanced their trust in the Company’s devel- construction improves risk identification and ized control proce- effective information independent internal

opment. governance participa- response mechanism dures for areas such system and manage- audit department

tion mechanisms continuously paying as transaction ment communication which regularly

scientifically sets up attention to the authorization division mechanism to ensure supervises and

organizational impact of changes in of duties voucher timely and accurate inspects the effective-

structure and the operating recording asset information transmis- ness of the design and

authorization systems environment on protection indepen- sion. operation of internal

and ensures the internal control. dent auditing and control and reports to

Key Performance separation of incom- information system the Audit Committee.patible duties. control ensuring the

legality compliance

During the reporting period the Company held online performance briefings answered and asset security of questions on the

business management.Shenzhen Stock Exchange Interaction Easy Platform and received over investor hotline calls;

Company’s Internal Control Related Measures

No incidents of punishment due to violations of information disclosure regulations occurred throughout

the year. Based on the internal control deficiency identification standards the Company conducts a comprehensive evaluation of internal

control over financial reporting and non-financial reporting. During the reporting period the Company had no material or signifi-

cant deficiencies in internal control over financial reporting and no material or significant deficiencies in internal control over

non-financial reporting were identified. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Business Ethics Whistleblower Protection

The Company has established smooth and convenient complaint and reporting channels in accordance with the Employee Appeal

GreatStar adheres to business ethics standards and compliance operational requirements strictly abides by relevant domestic Handling Procedure. Employees who actively use the reporting channels are rewarded with a certain percentage of the corruption

and international laws and regulations on anti-corruption and anti-unfair competition continuously improves its integrity manage- amount. The Company strictly implements the whistleblower protection system promising not to disclose whistleblower information

ment system and supervision mechanism standardizes full-chain business conduct and promotes the construction of a fair and to any third party other than the recipient effectively ensuring the security and effectiveness of the reporting channels.honest business environment.Key Performance

Anti-corruption and Anti-commercial Bribery

During the reporting period the Company had no incidents of corruption.A total of anti-commercial bribery and anti-corruption training sessions were conducted covering all directors

The Company continuously improves its anti-corruption governance mechanism building an integrity compliance management and management employees. All employees have signed integrity commitment letters.system from three aspects: system construction internal supervision and reporting channels. The Company has formulated and

implemented internal management systems such as the Employee Integrity and Self-Discipline and Supplier Integrity Management

Regulations requiring employees in key positions such as procurement and administration to sign the Employee Integrity and

Self-Discipline Commitment Letter clearly prohibiting employees from using their positions to commit any corrupt acts or infringe

upon Company property.In terms of internal supervision the Company conducts regular special audits based on the Internal Audit Rules and the Departure

Audit Rules. For cases of corruption fraud and commercial bribery discovered during audits corresponding measures such as

confiscation of illegal gains dismissal and internal notification are taken based on the amount involved. Cases with serious

circumstances are transferred to judicial authorities for handling in accordance with the law. Anti-unfair Competition

The Company attaches great importance to the fairness and compliance of market competition continuously conducts anti-unfair

competition related training to enhance employees’ legal awareness and compliance literacy. The Company organizes special

training on topics such as domestic and international anti-unfair competition criminal legal risks of executives’ duty-related crimes

and prevention of criminal legal risks in procurement and sales activities. At the same time considering the characteristics of

business in the Southeast Asia region the Company organized key training programs on executive duty-related crimes at its two

major bases in Vietnam and Thailand helping overseas management personnel understand and comply with local laws and regula-

Director tions. Through the above training the Company is committed to creating a fair and honest market competition environment ensur-

ing that domestic and international business activities comply with relevant regulatory requirements.Chairman of the Board

Key Performance

Members

Board Secretary Legal Personnel

Human Resources Director During the reporting period the Company had no incidents of unfair competition.Anti-corruption Committee Organizational Structure

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Data Security and Customer Privacy Protection

Computer

Hardware

Management

Data Confiden-

The Company continuously builds a security management system covering the entire data lifecycle implementing various Computer tiality and Data Software

measures for data security and customer privacy protection from multiple dimensions such as system construction technical Backup Management

protection risk management and personnel training effectively ensuring the security of the Company’s business data and the Management

legitimate rights and interests of customers and supporting sustained and stable business operations.Data Classifi- Classify and grade data according to the Company’s data master specification;

Password

Security Company LAN Management

cation Grading Management

and Gover- Regularly audit the compliance of data processing and storage in various business

nance systems.Company’s Network

Security Formulate and optimize data protection strategies including access control encryption Software Information Security

Strategy measures etc.; Resource Management System Internet Usage

Formulation and Security Management

Execution Promote data security-related training and awareness enhancement activities.Management

Risk Monitor- Monitor data access behavior and network traffic and handle anomalies promptly;

ing and Information

Emergency Participate in emergency response for data breaches and security incidents and conduct

Data Resource

Security Security

Response post-event reviews and improvements. Management Management

Information Ensure the Company’s compliance with data security-related laws and regulations;

Security The Company continuously builds a security management system covering the entire data lifecycle systematically enhancing data

Compliance Conduct internal and external audits to evaluate the effectiveness of data security work. security risk prevention capabilities through regular periodic special actions and inspection mechanisms. The Company regularly

and Audit organizes 5 large-scale information security special actions covering all employees each year combined with more than 2

small-scale security actions or special inspections per month forming a regular risk investigation mechanism. In terms of data

leak prevention the Company conducts data leak prevention inspections quarterly focusing on monitoring the external transmis-

sion and sharing of sensitive data; and organizes an access rights cleanup action semi-annually to promptly clean up redundant

Assist development teams in conducting data security testing before new products or or abnormal access rights preventing unauthorized data access.Technical systems go live;

Support and To further verify the effectiveness of security protection the Company conducts 2 simulated attack drills throughout the year

Innovation Introduce advanced data protection technologies and tools. simulating data breach or cyber attack scenarios to test emergency response capabilities. At the same time the Company

organizes 2 cross-departmental joint reviews throughout the year conducting collaborative inspections on the implementation of

data protection measures for core business systems. Through the above multi-level high-frequency data security risk manage-

ment actions the Company continuously strengthens its data asset protection capabilities ensuring the continuity and security

Core Responsibilities of the Company’s Data Security Team of business operations. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Key Performance Management Core Implementation 2025 Implementation

Dimension Measures Results

During the reporting period the Company had no confirmed data security incidents or confirmed

Established a data classification and grading

customer privacy breaches.management system setting corresponding

The external threat penetration rate decreased by %; successfully prevented potential data leak risks; access permissions for different data

categories based on departmental and

internal compliance audit coverage reached %.business sensitivity and compliance require- Data breach incidents reduced by 48%;

Data Classifi- ments and conducting regular audits;

cation Data classification and grading coverage

Grading and Implemented end-to-end encryption for reached 100% data

Encryption sensitive data during storage and transmis- encryption implementation rate exceeded

sion; 82%.Data Security Protection Measures

Established a regular multi-version data

During the reporting period the Company ensured business and customer data security through the following series of measures. backup mechanism and set up an off-site

In the future the Company will continue to optimize security strategies enhance automation and intelligent protection capabili- disaster recovery center.ties and respond to various network security challenges.Introduced Security Development Lifecycle

Management Core Implementation 2025 Implementation (SDL) embedding security approval process-

Dimension Measures Results

es into the entire product development and

Access rights review cycle shortened by

Process change process;

78%;

Attack identification rate increased by 50% Approval and

Built a multi-layered network protection network downtime reduced by 65% Access Followed the principle of separation of duties

Approval process automation rate reached

system to strengthen internal risk control; year-on-year; Management and least privilege strictly controlling

92% effectively reducing human errors.

approval processes for highly sensitive

Established a system for regular updates and No major network failure cases during the operations and regularly cleaning up

patching to ensure all systems and applica- reporting period effectively intercepted 4 unnecessary access permissions.Strengthen tions run the latest security patches and high-risk virus threats including new variants

Network versions and perform automated vulnerability like “Silver Fox”;

Protection scans weekly;

After the update and iteration of the network Established a security testing mechanism for

Implement 7×24 network threat monitoring prevention and control system actively new systems before launch conducting at

enhancing security control capabilities around analyzed 53019 external website attack logs least 3 rounds of security tests for each new

the four core security risk elements: assets using the big data platform in a single week system;

vulnerabilities threats and incidents. and blocked 8219 hacker attacks through

the cloud firewall. Information Invited external information security institu- Average vulnerability remediation time

Security

tions to conduct independent and compre- shortened by 55%;

Testing and

hensive security

Pre-launch

assessments of key systems; Security issues in newly launched systems

Implemented network isolation and fine-grained Security

decreased by 40% during the reporting

permission management; Review for

Conducted stress tests simulating high-traf- period.New Systems

fic high-concurrency scenarios to evaluate

Enhance Formulated terminal device security policies

External threat penetration rate decreased system stability and security;

Boundary requiring all terminal devices accessing the

by 68%.Security network to meet security verification require-

Established a closed-loop mechanism for

ments;

vulnerability remediation and retesting.Conducted full data flow monitoring.

2025 Company Data Security Protection Measures

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Conducting External Email Security Training to Enhance Company-wide Risk Prevention Awareness Equal Treatment of Small and Medium-sized Enterprises

During the reporting period the Company’s Information Center organized a special training on external email security. The GreatStar adheres to standardized operation in its business process and strictly fulfills its payment obligations to suppliers. During

training focused on common fraud techniques such as phishing emails malware infection and identity theft and conducted the reporting period the balance of the Company’s accounts payable (including notes payable) was maintained at a reasonable

case analyses combined with typical scenarios such as impersonating well-known institutions using reward baits and level. The Company attaches great importance to win-win cooperation with small and medium-sized enterprises. During the year

intimidation and pressure tactics. By explaining key points such as sender information verification risk identification of there were no overdue payments owed to SMEs nor was any related adverse information publicly available on the National Enter-

attachments and links and personal information protection the training helped employees master basic protective prise Credit Information Publicity System. By continuously optimizing payment processes and fund management the Company

measures. The training also demonstrated practical work scenarios such as compromised supplier email accounts and fake protects the legitimate rights and interests of upstream and downstream supply chain partners especially SMEs and is committed

order inquiries enhancing employees’ risk alertness in daily business interactions. to building a fair honest and sustainable business ecosystem. 02 0Environm2ental Manage-ment

Low-Carbon Leadership

Co-Drawing a Green Blueprint

GreatStar deeply recognizes that responsible environmental management is

the cornerstone of corporate sustainable development and a significant

commitment to future generations. The Company always places environmen-

tal protection at the core of its operational strategy strictly follows national

laws and regulations and actively builds a systematic and forward-looking

environmental management system. It has carried out a series of manage-

ment practices in key areas such as environmental compliance pollutant

treatment resource utilization circular economy and addressing climatechange demonstrating our firm determination to respond to the “dual-car-bon goals” with practical actions promote green operations and achieve a

harmonious unity of economic and environmental benefits.Our Actions

Environmental Compliance Management

Pollutant Emissions and Waste Treatment

Energy Utilization

Water Resources Utilization

Circular Economy

Addressing Climate Change

SDGs AlignmentHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Environmental Management System Certification

Environmental Compliance Management

GreatStar strictly follows national laws and regulations such as the Environmental Protection Law of the People’s Republic of China The Company actively promotes environmental manage-

and the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and has ment system certification. As of the end of the reporting

established the Responsibility System for the Prevention and Control of Environmental Pollution by Hazardous Waste clarifying the period a total of 6 subsidiaries of the Company have

work policy of “prevention first combining prevention with control” for environmental protection. In addition the Company passed the certification and obtained certificates.prevents and controls pollution at the source by strictly implementing the “Three Simultaneities” system for environmental protec-

tion in new projects and continuously drives the improvement of the environmental management system and compliance perfor-

mance by establishing environmental protection files and implementing energy-saving emission reduction assessment and

reward/punishment mechanisms.The Company has established a Pollution Prevention and Control Work Leading Group headed by the Company’s responsible

person and has built a three-tier pollution prevention and control management structure with clear rights and responsibilities to

ensure accountability is assigned to individuals:

Leadership Responsibility GreatStar Environmental Management System Certification Certificate

The Company's responsible person is the

primary accountable individual for pollution Environmental Risk Management

prevention and control bearing comprehen-

sive leadership responsibility for the compa-

ny's environmental protection efforts. The Company has established a systematic environmental risk identification assessment and graded control system strictly

follows national and local regulatory requirements such as the Classification method for environmental accident risk of enterprise

(HJ 941-2018) and formulates and regularly updates the Environmental Risk Assessment Report and the Emergency Response Plan

Decision-making and Supervision for Sudden Environmental Incidents.Pollution Prevention The Pollution Prevention and Control Work

and Control Manage- Leading Group is responsible for

ment Structure decision-making supervision and coordina-

tion of environmental protection work.Responsible Management Department

The General Department as the responsible

management department is responsible for

daily management and task decomposition.At the same time establish the principle of

"whoever manages production must manage

environmental protection" implementing

environmental responsibility in each produc-

tion unit.GreatStar Sudden Environmental Incident Risk Assessment Process

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

To effectively prevent and mitigate the risks of sudden environmental incidents the Company has built an emergency manage-

ment system with the emergency rescue command organization at its core clearly defining the responsibilities of personnel at all Case Conducting Hazardous Chemicals Safety Training to Strengthen Employee Emergency Response Capabilities

levels and various professional response teams. It has established a complete emergency plan system covering comprehensive

emergency plans special emergency plans for atmospheric water and hazardous waste pollution and on-site response plans for

key positions. The Company is fully equipped with various emergency supplies and has established robust record-keeping and In May 2025 the Company organized a special safety training on hazardous

usage management systems. At the same time it regularly conducts environmental safety training and emergency drills for chemicals for relevant key position personnel. This training focused on four

sudden environmental incidents continuously improving the emergency response and on-site handling capabilities of all employ- aspects: analysis of the Company’s current hazardous chemicals usage

ees ensuring rapid response and efficient handling when emergencies occur. interpretation of Material Safety Data Sheets (MSDS) regulations for hazard-

ous chemicals management and use and personal protection and emergency

measures aiming to effectively convey hazardous chemicals safety manage-

ment requirements to the frontline operational level. By strengthening

employees’ theoretical knowledge and practical skills the training further

consolidates the Company’s emergency management capabilities providing

strong support for accident prevention and ensuring personnel and environ-

Commander-in-Chief mental safety.Hazardous Chemicals Safety Training

Emergency Rescue

Command Headquarters

Chemical Rescue and Environ-

Deputy Commander mental Protection Expert Group Pollutant Emissions and Waste Treatment

GreatStar places environmental protection in a significant position in its business operations. Strictly based on national laws and

regulations it has established a whole-process control system covering wastewater exhaust gas and solid waste clarifying the

full-process specifications from pollution source control and process management to final safe disposal. By strengthening the

standardized management of the “three wastes” it ensures all types of pollutants are disposed of compliantly and properly

ultimately achieving full compliance with discharge standards by 2025 effectively ensuring the safety of the surrounding environ-

ment.Emergency

Rescue Team

Wastewater Management

The Company strictly follows laws and regulations such as Law of the People's Republic of China on Prevention and Control of

Water Pollutionand has established a standardized wastewater management system and set goals and measures for water

pollution control management.Emergency Rescue Command Organizational Structure Item Goals and Indicators Management Measures

1. Grinding and cleaning wastewater is collected uniform-

ly discharged to the wastewater treatment station for

unified treatment and discharged after meeting

Goal: Meet wastewater

standards.discharge standards achieved

Water Pollution

2. Use environmentally friendly floor scrubber cleaning

Control Indicator: Integrated Waste-

solution to ensure the water quality after floor cleaning

water Discharge Standard (GB

meets discharge standards.

8978-1996)

3. Require qualified environmental monitoring depart-

ments to conduct effluent monitoring annually.Water Pollution Control Management Goals and Measures

Logistics

Support Group

On-site First

Aid Group

Environmental

Monitoring Group

On-site Security

and Warning Group

Emergency

Firefighting Group

Emergency Rescue

and Repair Group

Emergency

Response Group

Communication and

Liaison GroupHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Furthermore the Company implements source classification and whole-process control of wastewater generated from production

activities distinguishing it based on its nature and source (e.g. production wastewater domestic sewage) and has established

Exhaust gas from printing ink is collected using hoods discharged at high altitude and measured regularly;

dedicated wastewater treatment facilities to ensure all wastewater is effectively treated before discharge to meet national and

local discharge standards. It regularly monitors wastewater quality completely records and preserves monitoring data forming a

traceable management archive. It actively promotes water-saving measures strictly controls wastewater generation through

process optimization and management enhancement ultimately achieving compliant sewage discharge in 2025. Exhaust gas from painting lines and oiling small in quantity is treated with activated carbon adsorption and tested

regularly;

Exhaust gas from polishing lines is collected using hoods treated by a cyclone + water spray dust removal system

discharged at high altitude and tested regularly;

Indicator Unit 2025

Total Wastewater Discharge 10000 m3 2.87 Exhaust gas from shot blasting lines is collected using enclosed equipment treated by baghouse dust collection

discharged at high altitude and inspected regularly;

Of which: Total Industrial Wastewater 10000 m3 0.18

Of which: Total Domestic Sewage 10000 m3 2.69 Canteen oil fume treatment is maintained regularly management is strengthened and discharge is reasonable;

Chemical Oxygen Demand (COD) Ton 4.59 Exhaust gas from mesh belt furnace quenching is directly combusted then collected and discharged at high

altitude; tempering exhaust gas is collected by hoods treated by high-voltage electrostatic oil removal equipment

Biochemical Oxygen Demand (BOD) Ton 3.88 discharged at high altitude and tested regularly.Ammonia Nitrogen Content (NH3-N) Ton 0.58 Exhaust Gas Management Measures

Total Nitrogen Content (TN) Ton 0.74

Indicator Unit 2025

Total Phosphorus Content (TP) Ton 0.095 Total Exhaust Gas Emission 10000 m3 3350

Suspended Solids Content in Wastewater Kilogram 3502 Volatile Organic Compounds (VOCs) Emission Kilogram 141

Particulate Matter Emission Kilogram 34.7

2025 Water Pollutant Discharge Performance1

Air Pollutant Management Performance2

Exhaust Gas Management Solid Waste Management

The Company has set an annual management goal of 100% compliance with the emission limits of its pollutant discharge permit

The Company implements strict classification collection storage and disposal management for solid waste particularly prioritiz-

and has built a full-chain control system covering generation collection treatment and monitoring. First it reduces exhaust gas

ing hazardous waste as the most critical aspect of environmental risk prevention and control. Based on the National List of Hazard-

generation at the source through technical evaluation and modification of equipment and production processes that generate

ous Wastes and identification standards it accurately identifies and classifies waste generated from production operations ensur-

exhaust gas. It is equipped with efficient exhaust gas collection systems and treatment facilities to ensure exhaust gas is

ing hazardous waste is managed separately from general industrial solid waste domestic garbage etc.effectively captured purified and discharged compliantly. Finally it establishes regular monitoring and maintenance mechanisms

to monitor and evaluate the operational status and treatment effectiveness of exhaust gas emission points and treatment

For hazardous waste the Company implements internal control requirements that are higher than regulatory standards and has

facilities.formulated a series of systems such as the Hazardous Waste Management System and the Hazardous Chemicals Management

System.

1 The data statistics scope is Zhejiang GreatStar Tools Co. Ltd. 2 The data statistics scope is Zhejiang GreatStar Tools Co. Ltd.

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Item Goal Management Measures Noise Pollution

In terms of noise control the Company pays attention to the noise impact generated by the operation of mechanical equipment

adopts comprehensive prevention and control measures starting with selecting low-noise equipment optimizing workshop layout

and building sound insulation and installing soundproof covers implementing noise reduction and vibration damping treatments

Use dedicated intact containers for collection

for high-noise equipment effectively reducing noise emissions through whole-process management creating a healthy and quiet

and clearly label waste information;

working environment for employees.Store in dedicated sites meeting safety and

environmental requirements avoid mixing

incompatible wastes and pre-treat waste cutting

fluid waste emulsion etc.; Item Goal Management Measures

Entrust the final disposal of all hazardous waste

100% classified storage

Hazardous Solid to professional institutions with legal qualifica-

and disposal by qualified 1. Entrust qualified testing units for noise detection

Waste Disposal tions strictly implement the transfer manifest

units achieved Meet Class II standard of annually.system and achieve traceable supervision of theNoise Pollution the “Industrial Enterpriseentire process from generation to disposal;Control Noise Emission Standard” GB 2. Post warning signs in high-noise areas such as

12348-90 achieved grinding machines and lathes requiring on-site

Maintain and repair hazardous waste storage operating employees to wear earplugs.rooms as required to prevent pollution from leaks.Additionally the Company actively explores

resource utilization pathways for solid waste and

promotes the recycling of recoverable materials. 2025 Noise Pollution Management Goals and Measures

Conduct publicity and guidance to strengthen

employee safety awareness;

Check daily ensure isolation from ordinary

materials strengthen anti-theft and leak

prevention management;

Chemical Annual chemical leakage

Leakage accidents: 0 achieved Check the effectiveness of fire extinguishers and

fire sand; update chemical inventory post MSDS

sheets;

Organize and conduct chemical leakage

emergency drills.

2025 Hazardous Waste Management Goals and Measures

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Packaging Workshop Cooling System Upgrade

Energy Utilization

Comprehensively modify the cooling system of the packaging workshop introducing a highly energy-efficient industrial air

conditioning localized cooling system to significantly reduce the energy consumption of the system.To actively respond to national energy conservation and emission reduction policies the Company has formulated an annual

special energy management plan to improve energy utilization efficiency and reduce operating costs. By implementing a series of Workshop Motor Energy-saving Replacement

energy-saving renovations and management optimization measures it continuously reduces energy consumption and rewards Gradually carry out energy-saving modifications on motors in the workshop including adopting high-efficiency energy-sav-

teams and individuals with outstanding performance in energy conservation and emission reduction work. ing motors applying variable frequency speed regulation technology and strengthening regular maintenance to ensure

motors are in optimal operating condition thereby reducing energy consumption.

2025 Energy Management Goal Strengthen Electricity Management in Office Areas

By formulating detailed electricity management systems clarifying job responsibilities strengthening employee

Achieve a % year-on-year reduction in electricity consumption in 2025. energy-saving awareness training and conducting regular electricity usage inspections we aim to eliminate energy waste

in the workplace and ensure that electricity is turned off when not in use.Currently the Company’s energy management system operates effectively meeting the requirements of the GB/T 23331-2020/I- Regular Tracking

SO 50001:2018 Energy Management Systems standard providing assurance for sustainable development.The Company regularly monitors and analyzes energy usage and makes timely adjustments and improvements.Identify and assess internal and external energy risks and opportunities through the “Risk and Main Energy Saving and Consumption Reduction Measures in 2025Risk and Opportunity Control Procedure” and develop response measures integrated into the management

Opportunity system;

Management Use the “Operational Control Procedure” to ensure effective implementation of measures and stable

system operation. Indicator Unit 2025

Comprehensive Energy Consumption Tons of Coal Equivalent (TCE) 904.41Establish quantitative goals and indicators at all levels according to the “Management Procedure forGoal and Direct Energy Consumption Tons of Coal Equivalent (TCE) 34.66Energy Goals Indicators and Management Programs”;

Indicator

Formulate specific management plans clarify responsibilities methods and schedules implement

Planning Of which: Gasoline Liter 10114

after approval and regularly review and update.Of which: Diesel Liter 18837

Energy Implement the “Management Procedure for Energy Baseline and Energy Performance Indicators”

Performance Indirect Energy Consumption Tons of Coal Equivalent (TCE) 869.75

identify and monitor energy performance indicators covering the enterprise and each energy-using

Indicators and

Baseline link establish an audited energy baseline for performance comparative analysis and evaluation. Of which: Electricity MWh 7076.92

Total Amount of Purchased Electricity MWh 7076.92Implement the data collection plan according to the “Energy Monitoring and Measurement ControlEnergy DataProcedure” continuously monitor measure and analyze key characteristics affecting energy

Collection Total Self-generated Electricity Consumption MWh 3670.56

performance ensure data accuracy and reliability and review and update the plan annually.Clean Energy Consumption MWh 3670.56

Conduct regular reviews following the “Energy Review Control Procedure”; Of which: Solar MWh 3670.56

Energy Review Use data analysis tools to identify major energy-consuming areas and improvement opportunities

document review results and provide a basis for management decisions.

2025 Energy Usage3

Energy Management System

3 The data statistics scope is Zhejiang GreatStar Tools Co. Ltd.

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Water Resources Utilization Optimize Workshop Flushing and Equipment Cleaning

The Company has formulated the Water Conservation Management Rules and established a three-tier water conservation Promote the use of manual methods such as mops and cloths in cleaning operations to reduce direct flushing; use floor

management structure led by the Water Conservation Work Leading Group creating a whole-process management system cover- scrubbers for floor cleaning; for processes that require flushing use low-pressure or intermittent flushing to reduce water

ing goal setting process control and effectiveness evaluation. Through regular water conservation self-assessments it deeply usage intensity.analyzes water use efficiency the application of water-saving technologies and the effectiveness of management measures Ground cleaning uses a scrubber;

continuously optimizing water resource management strategies based on this analysis and promoting the standardized imple- For parts that require flushing use low-pressure or intermittent flushing methods to reduce water intensity.mentation of water conservation work.Water Conservation Work Strengthen Water Management and Publicity

Leading Group

System Construction: Formulate and improve water management systems clarify water conservation responsibilities for

each department and position and establish water conservation assessment and reward mechanisms.Water Conservation Training and Publicity: Regularly organize water conservation knowledge lectures and skills training use various channels

Management Office such as bulletin boards and internal newsletters for extensive publicity enhance company-wide water conservation aware-

ness and operational skills and encourage employees to submit water-saving suggestions.Key Measures for Water Resource Management in 2025

Various Departments Various Workshops

Water Conservation Management Structure

Water Conservation in Project Inspection and Assessment Daily Operation Water

Construction Conservation

New construction renovation and The Water Conservation Manage- Main production departments

expansion projects adopt ment Office is responsible for the implement planned water manage-

water-saving processes equip- management inspection ment with the Enterprise Manage-

ment and appliances. Water-sav- assessment and promotion of ment Office formulating assessment

ing facilities strictly follow the water-related facilities and water indicators such as water consump-

Water Conservation Publicity Sign

"Three Simultaneities" principle conservation status. tion per ton of product.i.e. designed constructed and

put into use simultaneously with Various water-using departments

the main project and must pass should strengthen the management

acceptance inspection before use. of water circulation facilities actively

carry out water-saving renovations Indicator Unit 2025

implement graded and cascade water

use strengthen daily water manage- Total Water Consumption Ton 28713

ment eliminate "leaks spills drips

and seepage" and promote and

correctly use water-saving devices.

2025 Water Usage4

Water Resource Management System

2025 Water Resource Management Goal

In 2025 achieve a % year-on-year reduction in annual water consumption.

4 The data statistics scope is Zhejiang GreatStar Tools Co. Ltd.

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Circular Economy Addressing Climate Change

The Company actively responds to green development requirements fully integrating environmental protection concepts into all The Company is not only committed to reducing its own operational carbon footprint but also integrates climate action into its

aspects of its operations and building a green and low-carbon operation model through a series of resource circulation and corporate governance strategic planning and risk management processes. It has carried out a series of practices in climate

efficiency improvement measures. governance strategic positioning risk and opportunity identification and management carbon accounting and emission reduc-

tion actions while disclosing quantitative emission reduction targets and performance. This demonstrates our commitment and

proactive approach to managing climate issues scientifically and transparently and actively transitioning towards a low-carbon

future.Measure Type Specific Measures

Process Upgraded the grinding wheel dressing process introduced advanced electrical discharge

Modification machining (EDM) dressing technology effectively reducing the waste of green silicon carbide Governance

grinding wheels and achieving more rational resource utilization.The Company's climate action management is led by the Chairman and coordinated by the Sustainable Development Management

Using new calcium-plastic returnable containers to replace some traditional corrugated Committee systematically planning green and low-carbon development paths at the operational level and building a full-chain

cardboard returnable containers significantly improving the reuse rate of packaging materials.Packaging carbon management system. The Company has specially established a Green and Low-Carbon Factory Management Leading

Material Group formulated the Carbon Emission Management Rules and the 2023-2028 Green and Low-Carbon Factory Construction

Upgrade Implementation Goals and actively participates in CDP disclosure and SBTi science-based carbon target setting ensuring that Replacing product packaging blister shells from PVC material to PET material which is easier to

carbon reduction work is continuously advanced standardized and credible through institutionalized and scientific management.recycle and reuse reducing environmental pollution from plastic waste.Implemented refined treatment of injection molding machine nozzle material runner material

and non-conforming products adopting crushing and reuse methods effectively reducing waste Strategy

generation and improving material use efficiency. In 2025 the emission of waste plastic was

Waste

reduced by approximately 108 tons strongly promoting the factory's sustainable development.Recycling

The Company has established a process for identifying assessing and managing environmental (climate) risks and opportunities

covering impacts risks and opportunities throughout its direct operations as well as upstream and downstream value chains. The

Repaired and reused waste wooden pallets within the factory area. This environmental action is assessment is conducted qualitatively once a year and has been integrated into the Company’s company-wide multi-disciplinary

expected to save approximately 10 tons of new wooden pallet usage annually. risk management process.Promoting double-sided printing and actively advancing paperless office work with some

Office processes being digitized reducing paper usage while also reducing energy consumption and

Resource environmental pollution caused by paper production achieving efficient use and greening of

Optimization office resources.Green Operation Measures

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Risk/Oppor- Risk/Opportunity Likelihood of Impact Response Risk and Opportunity Management

tunity Type Description Occurrence Period5 Measures

Extreme weather (such as strong Regarding the identification and assessment of climate-related risks and opportunities the Company currently primarily uses

winds heavy rain) may cause direct Establish typhoon early qualitative assessment methods and conducts a systematic assessment once a year on a regular basis. This specialized climate

damage to factory buildings elevated warning mechanisms; reinforce management process has been deeply integrated into the Company’s multi-disciplinary organization-wide risk management

equipment and stored goods and lead factory facilities and upgrade process ensuring the synergy of climate issues with the Company’s overall strategy and operational risk management. At the

to damage to production equipment drainage systems; modify same time the Company has set quantitative “materiality” determination criteria for screening risks and opportunities that

due to flooding; increase operational production lines with modular require focused attention:

risks triggering safety incidents such design for easier relocation;

Acute Short-Medi-

as slips and falling objects; cause Medium purchase property insurance

Physical Risk um-Long Term Material Risk: Refers to an event where the probability of causing an 11% to 20% increase in the Company’s

production interruptions and supply and business interruption direct operating costs exceeds 50%.chain disruptions preventing the insurance; sign post-disaster

Company from delivering products on mutual aid agreements with Material Opportunity: Refers to an event where the probability of causing an 11% to 20% decrease in the

time. This not only affects order upstream and downstream Company’s direct operating costs exceeds 50%.fulfillment but also has a sustained enterprises; set aside

negative impact on the Company’s emergency funds.reputation and long-term operations.Carbon Emission Management

If the industry introduces disruptive

low-carbon production processes and

Actively invest in process In 2025 the Company conducted greenhouse gas (GHG) inventories for several of its subsidiaries systematically accounting for

Transition the Company fails to keep pace in a

Long Term modification and automation Scope 1 2 and 3 GHG emissions. Among themZhejiang GreatStar Tools prepared the GHG Inventory Report in accordance with Low

Risk timely manner existing production

upgrade projects. the ISO 14064-1 standard and passed the verification and certification by a third-party institution providing data support for

lines and equipment may face the risk scientifically formulating emission reduction strategies. In addition the Company also conducted product carbon footprint/C-

of premature obsolescence. BAM calculations for more than ten of its main products.In the context of global carbon pricing The Company plans to

policies (such as the EU CBAM) using significantly increase the

Policy

renewable energy (such as green Short-Medi- proportion of renewable

Compliance High

electricity solar power) can reduce um-Long Term materials used in its products

Opportunity

policy compliance costs and decrease and improve product design to

product carbon footprints. enhance reusability.The Company plans to

Growing market demand for low-car-

significantly increase the

bon products; using renewable/recy-

Market Short-Medi- proportion of renewable

clable materials can reduce carbon Medium

Opportunity um-Long Term materials used in its products

emissions enhance brand image and

and improve product design to

meet customer preferences.enhance reusability.Zhejiang GreatStar Tools Greenhouse Gas Verification Statement

In 2025 by coordinating various subsidiaries the Company advanced a series of multi-dimensional emission reduction projects

covering the entire chain of operations. As of the end of the reporting period the Company had achieved a cumulative carbon

dioxide emission reduction of 22711 tons laying the foundation for the Company’s sustainable development and green transfor-

mation.

5Short term: 3 years; Medium term: 3-8 years; Long term: Over 8 years.

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Category Main Measures Key Content Indicators and Targets

Upgraded the cooling system of its packaging

workshop estimated to save approximately 355.2 MWh To standardize the management of greenhouse gas emissions the Company has formulated the 2023-2028 Green and Low-Car-

of electricity annually reducing emissions by about 205 bon Factory Construction Implementation Goals. In addition Zhejiang GreatStar Tools obtained SBTi certification in 2025

tons of CO2 equivalent. committing to reduce absolute Scope 1 2 and 3 GHG emissions by 54.6% by 2033 from a 2023 base year a target aligned with

the 1.5°C temperature control pathway.Workshop Air Conditioning

System Modification

Equipment Upgrading

and Modification Indicator Unit 2023 2025 2028

Comprehensive Energy Consumption per Unit of Product tce/10000 units 0.0661 0.063 0.059

Workshop Cooling System

Carried out insulation and energy-saving modifications 2023-2028 Green and Low-Carbon Factory Construction Implementation Goals

Injection Molding Machine on its injection molding machines estimated to save

Energy-saving Modification approximately 408 MWh of electricity annually reducing

emissions by about 236 tons of CO2 equivalent.Continuously built rooftop solar power projects in

factories across multiple global locations. In 2025 solar

power generation reached 7802.96 MWh reducing

emissions by approximately 4292 tons of CO2 equiva-

lent.Solar Power Generation

Energy Structure

Transformation

Rooftop Solar Power Project

Procured biomass fuel for heating steam; its combus- GreatStar SBTi Certification Certificate

Procurement of Biomass Fuel tion does not increase the net carbon content of the

atmosphere.Procured 7 all-electric lithium battery pallet trucks and

forklifts replacing fuel oil with electric drive achieving Indicator Unit 2025

zero tailpipe emissions during operation and reducing

fossil fuel consumption. Scope 1 Emissions Tons of CO2 290.45

Procurement of New Energy Scope 2 Emissions Tons of CO2 equivalent 4852.34

Vehicles Greenhouse Gas Emission Reduction equivalent 22711

GreatStar Greenhouse Gas Emissions

Lithium Battery Pallet Trucks and Forklifts

Replaced ore-based steel with recycled steel for raw

Low-Carbon Supply Procurement of Renewable

materials significantly reducing the embodied carbon

Chain Steel

emissions of raw materials.GreatStar 2025 Emission Reduction Highlight Projects

6 The data statistics scope is Zhejiang GreatStar Tools Co. Ltd.

0Social De3velopment

Social Inclusivity

Co-creating Value

GreatStar firmly believes that innovation-driven growth is the core engine

leading the Company’s development product quality is the foundation for

winning market trust supply chain security is the solid cornerstone support-

ing stable operations working hand in hand with employees is the vibrant

source of continuous growth and giving back to society is a key measure of

the Company fulfilling its responsibilities. The Company systematically

integrates and synergizes these five elements striving to build an efficient

resilient and sustainable industrial ecosystem. This injects lasting momen-

tum into its own long-term development and actively contributes to promot-

ing the overall progress of the industry.Our Actions

Innovation-Driven Growth

Product and Service Safety and Quality

Sustainable Supply Chain

Employees

Contributing to Social Benefits

SDGs AlignmentHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Innovation-Driven Growth (Financial Materiality Topics)

GreatStar adheres to driving corporate sustainable development through innovation internalizing the innovation concept as a

development gene and leading industry trends through technological change. By continuously building systematic innovation

capabilities the Company constantly strengthens the foundation of power for steady progress maintaining long-term success in

market competition.Governance Company’s Innovation and Intellectual Property Management Capability Level Certificate (Level 4) based on ISO 56005

The Company has established an R&D and innovation organizational structure led by the Chairman achieving a systematic layout

for technology R&D in its two core areas: hand tools and power tools. This ensures a high degree of alignment between R&D work

and the Company’s overall development goals.Strategy

In terms of institutional guarantees the Company has formulated and implemented the New Product Development Project

Management and Assessment Rules which standardize the management of the entire project process orderly advance develop- Based on a comprehensive assessment of market dynamics technology frontiers and policy guidance combined with its own

ment work and ensure delivery quality. At the same time relying on the R&D Innovation Incentive Plan the Company uses a scien- business realities the Company regularly reviews risks and opportunities related to innovation-driven issues deeply analyzing

tific and fair incentive system to stimulate the innovation potential of the R&D team injecting strong technological momentum into their potential impacts to ensure the scientificity and effectiveness of response strategies.sustainable development.Risk Type Risk Description Likelihood Impact

As an enterprise that received the National Intellectual Property Demonstration Enterprise honor relatively early the Company of Occurrence Period

unswervingly advances its intellectual property system strictly implements the Patent Management Measures has completed

intellectual property management system certification for 10 consecutive years and has successively carried out patent naviga-

tion and high-value patent incubation work providing solid institutional support for the protection and value realization of innova- Relative deficiencies in product perfor-

Core

tive achievements. During the reporting period the Company successfully passed the level assessment for Innovation and mance and R&D efficiency may bring

Technology

Intellectual Property Management Capability based on ISO 56005 and obtained a Level 4 certificate marking that the Company’s risks such as market share loss delayed Low Long Term

R&D Lag

innovation and intellectual property management capabilities have reached international advanced levels. new product launches and reduced

Risk

brand competitiveness.In the future the Company will continue to deepen the implementation of international and national standards promote the deep

integration of technological innovation and intellectual property management fully leverage the Company’s globalization advan-

tages enhance the international competitiveness of its industrial and supply chains and accelerate the construction of a globally

competitive world-class enterprise.Intellectual property infringement may

Intellectual lead to legal disputes and administrative

Chairman of the Board Property penalties as well as product removal

Product Management Product Management Medium Short TermInfringement from shelves and supply interruptions

Litigation Risk adversely affecting brand reputation and

partner relationships.President

Product First Center Product Second Center Product Third Center The loss of key R&D personnel may lead

to project delays or interruptions leakage

Core R&D

of core technical expertise and adversely

Talent Low Medium Term

impact the team's innovation capability

Turnover Risk

Hand Tools Power Tools Cleaning Appliances the stability of the R&D system and

project delivery capacity.Storage Light Fixture Small Home Appliances

Oven

R&D and Innovation Organizational Structure Innovation-Driven Issue Risk List

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

At the same time the Company has established a standardized new product R&D process to ensure efficient and orderly innova-

Opportunity Opportunity Likelihood Impact

type Description of Occurrence Period tion work.Aligns with the electrification trend

Procurement Division Executive

promoting the transformation of product

Power Tool structure towards high-end;

Technology

High Long Term

Upgrade drives synergistic upgrades in the supply Initiation

Opportunity chain enhancing the brand’s comprehen- R&D Department Executive R&D Center

sive competitiveness in overseas markets.Introduce new products for different Export Division Executive

Diversified

markets enrich the product matrix

Market

optimize global market layout; New Product R&D Process

Demand High Long Term

Growth

drive capacity release enhancing In response to risks and opportunities under innovation-driven issues the Company precisely formulates response measures

Opportunity

business resilience. implements dynamic management ensures that various measures are effectively embedded into operational processes and

continuously enhances the resilience of the innovation system.Policy-driven Follow the direction of EU environmental Risk Type Response Measures

Green policies accelerate the R&D and applica-

Manufacturing tion of green manufacturing technologies Establish a technology research and tracking mechanism with a global perspective build

Technology reduce energy consumption and pollutant High Long Term Core Technology R&D platforms in collaboration with universities;

R&D and emissions in R&D and production process- R&D Lag Risk guarantee R&D investment as a proportion of revenue promote project-based management

Application es and enhance market competitive to accelerate technology transfer.Opportunity advantage. The Company’s internal patent and legal departments cooperate with external global profes-Intellectual Property

sional law firms to conduct full-process infringement searches;

Infringement

establish an intellectual property pre-review mechanism before product project initiation

Litigation Risk

Innovation-Driven Issue Opportunity List retaining the chain of evidence for the R&D process.Continuously optimize the compensation and incentive system;

Core R&D Talent

Management of Impacts Risks and Opportunities build skill training and career development paths establish a mechanism for sharing R&D Turnover Risk achievements enhancing talent’s sense of belonging.The Company uses a systematic approach to identify impacts risks and opportunities under innovation-driven issues covering Innovation-Driven Issue Risk Response Measures

dimensions such as regulatory policy interpretation customer feedback collection and cross-departmental collaborative

discussions comprehensively grasping internal and external environmental changes. Opportunity Response Measures

Type

Power Tool Technol- Align with the electrification trend enhance innovation self-motivation focus on R&D of

Policy and Regulation Interpretation Customer Feedback Collection Internal Cross-departmental ogy Upgrade core electric technologies accelerate the electrification upgrade of product lines and

and Tracking Collaborative Discussion Opportunity enrich the own-brand product matrix.The patent department regularly Collaborate with GreatStar's Export Regularly organize collaborative

Diversified Market

tracks regulations related to Center and E-commerce Center to meetings with multiple depart- Through customer needs and market demand research mobilize R&D and supply chain

Demand Growth

environmental protection technical quickly respond to customer needs ments such as Export Quality advantages to respond quickly and iterate products rapidly.Opportunity

standards and intellectual property collect product function and Control and Legal to assess

in markets such as North America performance requirements across innovation issues from multiple

the European Union and the United multiple markets and channels and dimensions such as technical Policy-driven Green Develop environmentally friendly materials and energy-saving production processes;

Kingdom assessing the constraints explore innovation opportunities. feasibility market prospects and Manufacturing introduce a life cycle assessment system throughout the entire product R&D process;

and guidance of policy changes on compliance risks. Technology R&D and apply for relevant green technology qualifications and certifications;

R&D and innovation. Application Oppor- replicate and promote environmentally friendly manufacturing technologies developed

tunity under the EU framework to other mature markets such as North America.Risk and Opportunity Identification Methods Innovation-Driven Issue Opportunity Response Measures

Leadership

Approval

Export Center Team

Corresponding

Team

Demand

Confirmation

Internal Approval by

R&D Department

R&D Design ApplicationHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Conducting ISO 56005 Special Training to Solidify Innovation Management Foundation Product and Service Safety and Quality

In August 2025 the Company’s R&D Department organizeda special training on ISO 56005 “Innovation Management -Intellectual Property Management Guidelines” with active

participation and learning from relevant personnel in the

R&D department. As an international standard for intellec-

tual property management spearheaded by China the GreatStar implements its quality management policy of “Striving for Excellence Pursuing Quality and Innovation” with practical

systematic introduction of ISO 56005 has received strong actions. The Company adheres to a customer-centric approach continuously improves its quality management system strength-

promotion at the national level and Zhejiang Province has ens whole-process quality assurance capabilities and transforms quality advantages into customer trust advantages through

also taken the lead in carrying out pilot implementation precise insights and continuous optimization of product and service experiences continuously building brand value through

work. This training helped the R&D team deeply understand long-term cooperation.the cutting-edge innovation and intellectual property Governance

management framework laying a solid foundation for the

Company to subsequently benchmark high standards and The Company continuously improves its quality management organizational structure clearly designating the President as the

build a systematic innovation management system. Company Conducts ISO 56005 Special Training highest person in charge of quality management work responsible for leading the construction and operation of the Company’s

quality system. The Quality Control Center as the competent department for domestic product quality management has subordi-

nate departments including the Standards System Department Tools Quality Inspection Department Power Tools Quality Inspec-

tion Department Comprehensive Quality Inspection Department and Central Laboratory covering all quality control links of all

product lines. At the same time the Company has set up a dedicated quality control department at its overseas bases to strength-

en the quality assurance capability for overseas production bases.De-plasticization Packaging Low-Noise Vacuum Cleaner At the same time the Company strictly implements quality management systems such as the Product Evaluation Management

Facing increasingly stringent environmental policies in The Company has deeply engaged in industry-universi- Measures Product Inspection and Testing Control Procedure Quality Improvement and Cost Reduction Improvement Project

overseas markets and urgent customer demand for green ty-research collaboration with the University successful- Reward System Product Recall Procedure and Emergency Plan Management System ensuring that all aspects of quality

packaging GreatStar focused on industry pain points of ly developing a new vacuum cleaner that combines management are standardized and effective guaranteeing production continuity and continuously improving product quality.traditional blister packaging (not environmentally friend- high-efficiency dust collection with low-noise operation.ly difficult to recycle not easy to open) and successfully This product optimizes the airflow path and structural

developed a pure paper packaging solution for hand design setting up a diversion structure at the air intake President

tools. This packaging significantly enhances product duct to effectively guide dust-laden airflow downward

accessibility while maintaining a novel design aesthetic. avoiding the formation of turbulent flow in the air outlet

All cardboard materials comply with the same recycling area thereby significantly improving dust collection Quality Control Center Overseas Bases

standards reducing plastic usage from the source and efficiency reducing energy consumption and reducing（Vice President） （General Manager）

effectively lowering the difficulty of recycling processes the risk of large particle debris blocking the filter

in downstream stages. This innovative achievement not cartridge. At the same time this design also prevents the

only won widespread praise from overseas supermarket accumulation of sound energy at the air inlet achieving

customers but also practiced environmental concepts noise reduction at the source.through green design achieving an organic unity of

ecological benefits and user experience.R&D Innovation Achievements

Indicators and Targets

The indicators and targets for the Company’s innovation-driven issues are as follows:

Company’s Quality Management

Key Performance Product Quality Management Organizational Structure System Certification

During the reporting period the Company’ s R&D expenditure was RMB. million，the proportion of total In terms of customer service the Company continuously focuses its efforts on two major areas: customer complaint handling and.% .% responsible marketing. For complaint handling the Company strictly implements the Customer Complaint Handling Regulations R&D expenditure to operating revenue was ，and the proportion of R&D personnel was ；

establishing a closed-loop management mechanism to ensure customer demands are resolved promptly and effectively continu-

The Company added new patents during the year ously improving customer satisfaction. In the marketing process the Company regulates the behavior of marketing personnel ；

through the Code of Professional Conduct and Business Assessment Regulations for Export Sales Staff strengthening integrity

It held a total of patents including invention patents; held copyrights and trademarks. and compliance awareness and effectively protecting customer rights and interests.

Overseas Base Quality

Control Department

Central Laboratory

Comprehensive Quality

Inspection Department

Power Tools Quality

Inspection Department

Hand Tools Quality

Inspection Department

Standards System

DepartmentHangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Strategy Risk Type Risk Description Likelihood Impact

of Occurrence Period

The Company adheres to its product quality strategy as a guide combining internal management practices with external environ-

mental changes systematically identifying and assessing risks and opportunities related to product and service safety and quality

deeply analyzing their potential financial impact on the Company and providing decision-making basis for continuously optimizing

the quality management system.In the context of increasingly stringent

global green trade policies and low-car-

bon consumption trends products with

Green Trade high carbon footprints or non-compli-

Company Product Quality Strategy Barriers and ance with green manufacturing Medium Long Term

Carbon standards may face trade barriers such

Deeply cultivate hand tools continuously develop power tools and laser measuring tools Tariff Risk as additional tariffs and market access

strengthen own brands expand product categories and lead the development of the restrictions leading to order losses. The

international tool industry. use of traditional processes or high-car-

bon suppliers will exacerbate such risks.Risk Type Risk Description Likelihood Impact Opportunity Opportunity Likelihood Impact

of Occurrence Period Category Description of Occurrence Period

Top customers in major global markets

regard suppliers’ quality systems safety

certifications and stable quality control

In large-scale production if product as core cooperation thresholds. Relying

Product defects or inconsistencies arise due to on its mature system full-category

Quality and differences in raw materials processes product lines and continuous improve-

Supply equipment precision or supplier Medium Term ment of supplier quality the Company

Medium Market

Chain standards it may lead to returns Long Term fully guarantees delivery stability meets Expansion High Long Term

Collabora- rework or repairs and adversely affect customers’ high requirements for quality Opportunity

tion Risk order fulfillment customer satisfaction consistency and strengthens strategic

and brand reputation. customer ties.The Company responds to sustainable

development needs with green manufac-

turing and energy-saving/carbon

reduction practices enhancing compre-

hensive competitiveness.Increased consumer safety awareness

If products have design defects and willingness to pay a premium for

Product Safety insufficient safety protection or fail to products meeting stringent safety

Compliance follow regulatory standards they may standards allow the Company to Compliance

and Sustain- cause harm to users or trigger recalls Low to Medium Long Term transform “safety compliance” from a Image

able Develop- and sales bans due to increasingly cost into a core brand value effectively High Long TermShaping

ment Risk stringent environmental and compliance improving customer experience Opportunity

requirements. enhancing brand trust through corporate

ethics and integrity building and making

its own brands stand out.Product and Service Safety and Quality Issue Risk List Product and Service Safety and Quality Issue Opportunity List

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Management of Impacts Risks and Opportunities Risk Type Response Measures

The Company has established a risk and opportunity management process covering four major stages: identification assessment

response and control. Through the close connection and strict control of each stage it provides strong guarantees for the

Company’s stable operation and strategic decision-making. Utilize new technologies to achieve process monitoring and quality prediction while extending

Product Quality management to suppliers and implementing collaborative quality control;

and Supply Incorporate ethical integrity green manufacturing and energy-saving and carbon reduction

Chain Collabora- requirements into supplier management;

Combining domestic and international macroeconomic environments tool industry devel- tion Risk Establish a response channel from customer to production formulate emergency plans for

opment trends and the Company’s internal R&D and production data the Company major quality issues and organize regular drills.systematically reviews the entire process from product design raw material procurement

ldentification manufacturing to quality inspection packaging and transportation and after-sales

service identifying potential product quality and safety risks such as material defects Product Safety

process stability compliance changes etc. while also paying attention to development Compliance Continuously track global safety environmental and carbon regulation laws embedding

opportunities such as new materials intelligent manufacturing and market expansion. and Sustain- compliance and green manufacturing requirements into the new product development process;

able Develop- Formulate safety emergency plans establish a response process including recall communica-

ment Risk tion and public reassurance with regular drills to ensure rapid response capability.Conduct graded assessments based on the likelihood of risk occurrence and the

potential degree of impact on product safety brand reputation and compliance

Assessment operations. For high-risk items that may lead to product recalls safety incidents or Integrate product carbon footprint and green manufacturing requirements into supplier quality

major complaints initiate the reporting mechanism immediately; classify and priori- evaluation;

tize medium and low-risk items clarifying management focus. Apply new technologies to optimize production processes reducing energy consumption and

emissions per unit of product;

Risk and Opportunity Green Trade Formulate emergency plans for green trade barriers covering cost calculation when carbon

Management Process Barriers and tariffs are triggered price adjustment strategies and customer communication plans;

Formulate response strategies for different levels of risk: Immediately report Carbon Tariff establish a cross-departmental rapid response mechanism to ensure timely adjustment of

high-risk items and take emergency control measures such as production suspen- Risk production and export strategies when policies change;

sion and investigation; mitigate medium-risk items through process optimization enhance green value perception in customer experience through product environmental

Response enhanced inspection training improvement etc.; incorporate low-risk items into labeling and carbon footprint transparency;

routine management and continuously observe. At the same time actively seize conduct regular emergency drills simulating responses to carbon tariff audits or green trade

opportunities such as industry technology upgrades and digital transformation to disputes to enhance organizational response capabilities.promote continuous improvement of product and service quality.Product and Service Safety and Quality Risk Response Measures

Establish a dynamic risk tracking log continuously monitor risk status the effectiveness

of response measures and emerging risk factors ensuring controllability throughout the Opportunity

Control process. Regularly conduct risk assessment and management reviews adjust control Type Response Measures

strategies promptly improve the quality management system and achieve closed-loop

risk management and continuous improvement. Build a full-chain digital quality control and safety management system to achieve real-time data

traceability and transparency meeting high-end customers' requirements for quality transparency;

Market

Implement special energy-saving and carbon reduction initiatives upgrade process equipment and

Expansion

incorporate environmental standards into supplier management to build a sustainable supply chain;

Opportunity

Establish a customer service mechanism and formulate emergency plans to ensure order stability

enhance customer experience and cooperation stickiness.Establish safety and compliance standards at the front end of R&D to develop safe reliable

The Company has taken targeted response measures to continuously improve product quality stability and safety ensuring Compliance high-value-added products and build technical barriers;

effective risk prevention while fully grasping the development opportunities brought by quality advantages. Image Shaping Set up a forward-looking compliance early warning system and participate in standard setting;

Opportunity Embed ethical and integrity standards into supplier codes of conduct leverage technology to

ensure verifiable compliance conduct regular full-chain emergency drills and improve the rapid

response mechanism from monitoring to communication to safeguard brand reputation.Product and Service Safety and Quality Opportunity Response Measures

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Focusing on Product Failure Prevention to Promote Quality Source Control Quality Emergency Management

In 2025 the Company organized a special training on QC The Company has established an emergency plan management system covering multiple types of emergencies such as natural

product quality problem detection and prevention. This disasters equipment failures and supply chain disruptions specifying various emergency measures response time limits and

training focused on key stages such as product design responsible departments making every effort to ensure product supply to customers in emergency situations. At the same time

manufacturing use and maintenance. By analyzing the the Company has formulated and continuously optimizes its product recall procedure distinguishing between general and

causes of failures through real cross-industry case studies it emergency recall situations standardizing the entire process from initiation and notification to recovery and handling and

guided the Company to systematically identify weak links in organizes relevant drills annually to effectively respond to major quality or safety hazards.the product lifecycle and form preventive improvement

strategies. This training enhanced the failure analysis and Product Problem Identified Quality Inspection Department

prevention capabilities of the Company's quality personnel (Quality/Safety/Regulatory) Notifies Management Representative

laying the foundation for subsequently promoting a reduction

in the failure rate of key components and optimizing quality

cost control.Special Training on QC Product Quality

Problem Detection and Prevention Determine Recall Type Management Representative

Decides on Recall

General Recall → Execute General Recall Process

Emergency Recall → Execute Emergency Recall Process

Case Conducting EU Compliance Training to Solidify the Foundation of Export Markets

Record Archiving

In 2025 the Company organized a special training on EU

compliance requirements for quality control. This training Product Recall Handling Process

addressed the implementation requirements of new EU

regulations such as the General Product Safety Regulation

(GPSR). It systematically interpreted core regulations like

GPSR GDPR and EPR focusing on key aspects such as EU Product Quality Improvement and Cost Reduction

authorized representative designation product labeling and

traceability extended producer responsibility and data During the reporting period relying on the Quality Improvement and Cost Reduction Improvement Project Management System

protection mechanisms. Through expert explanations and the Company orderly organized and implemented several quality improvement and cost reduction projects successfully complet-

case studies it helped compliance product and export ing all predetermined goals. By guiding various subsidiaries to carry out special improvements focusing on urgent problems in

business personnel master specific implementation paths. production and operation the Company achieved effective improvement in product quality and reasonable control of quality

Through this learning the Company further constructed a costs further enhancing the Company's comprehensive competitiveness in the market.systematic EU market compliance management system

effectively enhancing its ability to prevent risks such as Special Training on EU Compliance Requirements Project Goal Achievement

incomplete labeling and data non-compliance laying a solid Status

foundation for stable expansion in the EU market.Product A production efficiency increased by more than 5 times Achieved

Reduced Product B quality return rate from 1.03% to within 0.50% Achieved

Quality Management System Internal Audit

During the reporting period to ensure the effective operation of the quality management system the Company organized and Product C go gauge non-conforming rate reduced from 35.7% to below 5% Achieved

carried out internal audit work. This internal audit based on the requirements of GB/T 19001-2016 and GB/T 24001-2016

standards the Company’s management manual and procedure documents comprehensively covered changes in the Company’s

internal and external environment and related measures for addressing risks and opportunities. It aimed to systematically evaluate Achieved

the conformity suitability and effectiveness of the system track and verify the implementation of corrective actions for issues Product D appearance non-conforming rate reduced from 14.46% to 2.7%.identified in the previous internal audit and identify opportunities for improvement for the continuous optimization of the system. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Ensuring Customer Satisfaction Industry Standard Formulation

Relying on customer complaint handling regulations the Company systematically carries out the acceptance analysis and While continuously improving the safety

corrective action for customer complaints promotes cause investigation implementation of corrective measures and effective- and quality management level of the GB/T 46126-2025

ness verification and incorporates relevant records into the quality prevention and continuous improvement mechanism Company’s products and services the Technical specification for machine-operated socket wrenches

effectively protecting customer rights and interests. Company actively transforms practical

experience into industry contributions GB/T 46127-2025

deeply participates in the discussion and Transmission accessories for machine-operated socket wrenches

formulation of technical standards in

Case Conducting Customer After-sales Handling Training to Improve Service Quality related fields empowers the standardized GB/T 46128-2025

development of the industry with its own Machine-operated socket wrenches — Non-impact sockets

In 2025 the Company's E-commerce Center organized a practice and further enhances the QB/T 2208-2024

special training on customer after-sales handling. The Company’s industry influence. Electrician's knife

training focused on core after-sales metrics on e-commerce

platforms (Order Defect Rate Return Performance Custom- QB/T 2443-2024

er Service Score) systematically explaining practical content Steel measuring tape

such as rating and review handling internal message

handling and return report analysis combined with analysis

of positive and negative cases strengthening participants'

National and Industry Standards the Company

understanding of platform policies communication taboos Participated in Formulating

and customer service principles. Through this training the

e-commerce team further mastered compliant and efficient

after-sales handling methods improved its ability to respond Indicators and Targets

to and solve customer problems laying a solid foundation for

reducing account risks improving customer experience and E-commerce Center Customer The indicators and targets for the Company’s product and service safety and quality issues are as follows:

maintaining brand reputation. After-sales Handling Special Training

Key Performance

The Company conducted a total of quality management training sessions covering participants;

The Company’ s customer feedback response rate was % with customer complaints.Goal 2025 Achievement Status

No major quality accidents continuously improving QC and QA capabilities Achieved

QC sample submission timeliness rate above 94% QA report review timeliness rate above 97% Achieved

Subsidiaries’ first-time pass rate for deliveries not less than 98% Achieved

Complete no less than 9 quality improvement projects Achieved

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Key Honors

During the reporting period relying on excellent market reputation

and solid product quality the Company received multiple industry

honors and authoritative recognitions strongly validating its

brand influence.GreatStar WORKPRO Receives Company Receives GreatStar WORKPRO Receives

Three Awards at the 2025 Pro Tool Innovation Awards eBay - YuanShi·elite China Elite Brand Seller Amazon “Decade Partnership Long-Term Winning Brand” Award

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Opportunity Likelihood of Impact

Sustainable Supply Chain (Double Materiality Topics) Type Opportunity Description Occurrence Period

GreatStar systematically builds a green transparent and responsible supply chain management system comprehensively Overseas

strengthens full-process risk identification and control mechanisms collaboratively advances capacity building and green Procurement Overseas bases have advantages in labor

transformation and continuously improves the supply chain’s resilience and sustainable development level in complex environ- Cost warehousing and logistics costs.High Long Term

ments. Opportunity

Governance

The Procurement Department is the responsible department for the Company’s supply chain management fully accountable for

supplier lifecycle management and implementing coordinated control over risks in the entire supply chain process. At the same

time the Procurement Department strictly implements systems such as the Procurement Business Code Product Procurement A green and sustainable supply chain is

Business Regulations Procurement Center New Product Development Management Regulations and Supplier Integrity Manage- the future of supply chain management.ment Regulations. Using institutional constraints and daily supervision as levers it continuously promotes transparency and Green Increasingly stringent compliance

controllability in all aspects of the supply chain ensuring that suppliers align with the Company’s strategic goals in terms of Supply Chain requirements for supply chain access in

Construction Medium Medium Termproduct quality delivery capability and green operations. markets such as the EU help promote the

Opportunity digital upgrade of the Company's supply

chain align with low-carbon trends and

Strategy reduce obsolete inventory and waste.Based on a comprehensive assessment of supplier market dynamics and the Company’s domestic and international production

layout the Company continuously identifies assesses and dynamically updates the list of risks and opportunities related to the

sustainable supply chain.During the expansion of the overseas

Likelihood of Impact supply chain establish sales companies Risk Type Risk Description Occurrence Period Global and regional centers as needed build

Market visibility locally through talent acquisition

Expansion High Long Termand brand operations and further expand

The technical levels of local overseas Opportunity markets in Europe Southeast Asia and

suppliers are uneven; some raw materials and

other regions.components rely on imports from China

creating certain supply chain vulnerabilities.Table: Sustainable Supply Chain Issue Opportunity List

The production standards of some suppliers

Global are not fully aligned with the mature domestic

Procurement High Long Termsystems requiring strengthened quality

Risk supervision and development throughout the

process;

Cross-cultural communication barriers may

affect management efficiency and building

multinational supply chain teams takes time.Procurement The prices of the Company’s main raw

Price materials fluctuate significantly causing the Low Short Term

Volatility Company’s production costs to fluctuate as

Risk well.Sustainable Supply Chain Issue Risk List

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Management of Impacts Risks and Opportunities Supplier Full Lifecycle Management

In response to potential risks and opportunities in the supply chain the Company has established a full-process dynamic control The Company has established a supplier full lifecycle management mechanism covering the entire process of supplier admission

mechanism covering identification assessment management and monitoring. maintenance and exit implementing systematic and dynamic control over cooperative relationships.Identification Assessment Management Monitoring Supplier Admission

Assessment content is benchmarked against customer and third-party audit requirements covering three core modules:

The Company systematical- For identified risks and Based on assessment The Company regularly product quality system anti-terrorism security (mainly for the US market) and social responsibility (including human rights

ly analyzes various data opportunities the Compa- results the Company evaluates the implementa- protection environmental protection fire safety and site compliance).indicators in the supply ny conducts comprehen- formulates differentiated tion effectiveness of Supplier factory audit standards are formulated by the Company's quality control system and on-site factory audits are

chain management sive analysis from dimen- response strategies for various response conducted accordingly.process combined with sions such as financial different levels of risks and measures and dynamically

global market dynamics and impact and operational opportunities clarifies monitors the operational Procurement or QA/QC departments assign personnel to conduct on-site assessments and issue written reports.regulatory policy changes impact assessing their responsible personnel and status of the supply chain. The on-site assessment focuses on verifying factory fire safety capabilities employee social security and housing fund

to comprehensively identify potential impact level and control measures and contributions temporary worker management and compliance with child labor prohibitions.potential risks and likelihood of occurrence. ensures risks are controlla-

opportunities in all aspects ble and opportunities can The company conducts financial reviews to verify tax compliance grades and business scope legitimacy combines quality

of the supply chain. be seized. assessment reports issued by the quality control department and makes comprehensive evaluations before incorporating

suppliers into the procurement system;

The Company has established an SRM procurement collaboration platform which is effectively operated in various subsid-

Sustainable Supply Chain Issue Risk and Opportunity Management Process iaries achieving full-process and group-wide management of the supplier development process.Based on comprehensive assessment results the Company classifies supplier product quality into three levels: A C and E.To effectively respond to various risks and opportunities in supply chain management the Company formulates and implements

differentiated response measures embedding various requirements into daily operational processes.Supplier Maintenance

Risk/Opportunity Type Response Measures The Procurement Department as the main management department for product suppliers is primarily responsible for

assessing supplier on-time delivery rates.Regularly assess political and natural risks of overseas bases and formulate emergency The quality control department signs quality agreements with suppliers regarding product quality pass rates clearly setting

plans; pass rate targets of 96% or 98%.establish a backup supplier database for the coordination of domestic and internation- For common quality problems occurring in suppliers' production processes the QA department jointly carries out on-site

al production capacity while developing multiple transportation routes to ensure guidance and special improvement with the Procurement Department promoting continuous and stable product quality.Global Procurement Risk

logistics smoothness; For suppliers involving special processes such as heat treatment and cold working the Company's research institute

integrate supplier information qualification platforms order management inventory provides professional support promoting win-win cooperation.and warehousing logistics data to achieve online end-to-end traceability at domestic

and international bases. Supplier Exit (Elimination)

Continue to strengthen procurement and cost control establish strategic cooperative The company conducts an annual comprehensive performance evaluation of suppliers. For the bottom 50 suppliers priority

Procurement Price relationships with suppliers and sign long-term agreements to absorb raw material is given to implementing support and improvement strategies. The company leverages its own technical and managerial

Volatility Risk Overseas price fluctuation risks; expertise to assist these suppliers in resolving issues and enhancing their capabilities.Procurement Cost establish and improve price control processes with various Company departments The Company's quality control system regularly conducts on-site surveys and assessments of downstream factories and

Opportunity collaboratively participating in project price verification selecting suppliers with the second-tier suppliers to comprehensively understand supply chain quality performance.best cost-performance ratio and ensuring the reasonableness of procurement prices.For suppliers requiring improvement actions the company mandates the submission of 8D corrective action reports and

requires regular progress updates to the QA department ensuring that the corrective process for non-conformities is

Sustainable Supply Chain Issue Risk and Opportunity Response Measures traceable and the results are verifiable.Full Lifecycle Management Mechanism

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Responsible Sourcing Supplier Integrity Building

The Company’s own business does not involve conflict minerals. On this basis the Company continuously advances responsible The Company is committed to building a transparent and

sourcing practices clearly requiring suppliers to commit to not using conflict minerals and implementing compliance controls on open procurement system. When establishing coopera-

the sources of materials such as tin. For special materials such as wood suppliers must provide relevant certifications like FSC tive relationships with new suppliers it requires them to

Forest Certification to ensure the sustainability of raw material sources. In procurement framework agreements the Company sets sign the Letter of Commitment on Integrity. The

clear requirements on environmental indicators such as heavy metal content detailing the rights and obligations of both parties. commitment letter clearly defines behavioral red lines External Internal

At the same time the Legal Department considering potential risks in actual supply chain operations requires suppliers to sign prohibiting any form of commercial bribery improper Legal Department

written commitments to ensure that procurement activities are traceable and risks controllable throughout the process. acceptance of high-consumption entertainment Project phone public Internal Complaint

activities and other inappropriate conduct. The signing email fax etc. Channel

rate for this commitment letter is 100% ensuring

integrity requirements are effectively communicated. For

Supplier ESG Management suppliers who violate relevant prohibitive regulations

the Company will immediately cancel their cooperation

The Company strictly implements environmental and safety management requirements for suppliers. During the supplier admission qualifications using strict constraints to maintain the Complaint and Reporting Channels

stage the Company focuses on reviewing their environmental certificates and operating qualifications to ensure they possess legal fairness and seriousness of procurement activities.and compliant operating conditions. Focusing on key aspects such as wastewater discharge electrical safety dust control work

safety and noise control the Company verifies one by one whether suppliers’ environmental impact assessment approvals and

pollutant discharges comply with local environmental protection department requirements and conducts on-site assessments of Indicators and Targets

their pollutant treatment facility configurations to ensure production processes meet environmental and safety standards.The Company’s sustainable supply chain related indicators and targets are as follows:

In terms of product environmental control relying on the Quality Control Center Laboratory the Company conducts heavy metal

content testing on procured products to ensure relevant indicators meet standards and implements unannounced spot checks in

subsequent cooperation to continuously reduce the content of substances harmful to human health (such as phosphorus powder). Key Performance

Through a combination of testing and supervision the Company ensures the environmental friendliness and safety of procured

products at the source.To further solidify the responsibilities of both parties the Company signs documents with suppliers such as the Supplier/Processor During the reporting period the Company’ s supplier assessment coverage rate was %.Environmental Safety Protection Agreement the Supplier Social Responsibility Commitment Letter and the CTPAT Security Control

Agreement clarifying environmental safety and social responsibility requirements in contractual form promoting compliant opera- The signing rate of the Letter of Commitment on Integrity for new suppliers was %.tion of all aspects of the supply chain. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Launching Campus Recruitment Program to Cultivate Young Elite TalentsEmployeesIn September 2025 the Company officially launched the “GlobalGreatStar always adheres to the "people-oriented" management philosophy building a fair safe inclusive working environment full Sunrise Program” campus recruitment plan recruiting 2026

of growth opportunities. It actively practices in areas such as employee rights protection training and development compensation master’s graduates from globally renowned universities. This

incentives and employee care. By respecting empowering and caring for every employee it stimulates their potential and creativ- program fully empowers graduate growth through cross-depart-

ity achieving the synchronization of personal value and corporate development and jointly moving towards an excellent future. mental rotational learning one-on-one mentoring by

director-level supervisors and integrated systematic training

from GreatStar Academy’s “553 Talent Program” and “Star-MoonProgram.” The project is committed to cultivating versatile elite

talents for the Company who possess professional depth

practical experience and a holistic perspective while providing

them with clear career development paths.Employee Rights and Interests Protection

The Company strictly follows national labor laws and regulations applying the principles of fairness justice and non-discrimina-

tion throughout the entire process of employment compensation performance management and democratic management. It not Global Sunrise Program Recruitment Plan

only provides employees with competitive compensation and benefits and clear career development paths but also ensures

employees’ demands are heard and responded to by establishing smooth communication and feedback mechanisms.Case Holding Annual HR Co-creation Conference to Drive Organizational Upgrade

Employee Employment In 2025 the Company held the Human Resources TeamCo-creation Conference. The conference themed “Co-create ·The Company strictly follows national laws and regula- .% .% .% Empower · Upgrade” featured two days of in-depth discussion

tions such as the Labor Law of the People’s Republic of and learning summarizing past experiences and clarifying the

China and the Labor Contract Law of the People’s

Proportion of direction for the new year. It included benchmarking study

Republic of China establishing and implementing a Proportion of

Employees tours immersive visits and team co-creation focused on

market-oriented standardized selection and employ- Employees by by Employ- corporate culture building and in-depth discussions on the

ment mechanism. It explicitly prohibits the employment Gender ment Type application of artificial intelligence in recruitment training

of child labor forced labor and any form of discrimina- .% culture and other scenarios. This conference enhanced the

tion building and maintaining fair legal and healthy strategic collaboration and professional capabilities of the HR

employment relationships. By formulating and imple- Male Full-time Employees team laying a solid organizational and talent foundation to

menting the Recruitment Management Measures and Female Part-time Employees support the Company’s high-quality development.clarifying employment standards and procedures in the

.% .% .% HR Annual Co-creation ConferenceEmployee Handbook it continuously optimizes the .%

human resources management system ensuring relevant

systems are effectively implemented in all aspects of .%

Proportion of Proportion of

recruitment and employee management. In addition the

Employees by .% Employees by

Employee Handbook also specifies internal complaint Job Level Age Key Performance

procedures for labor disputes (escalating to department .%

heads the Human Resources Department and the labor

union) and external arbitration channels. General staff Under 30 years old In 2025 the Company’ s total number of employees was ;

Junior management 30-50 years old

employees Over 50 years old

Middle management The Company had no confirmed incidents of discrimination forced labor or child labor.employees

Senior management

employees

Company Employee Composition

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Compensation and Performance Democratic Management

The Company has established a comprehensive compensation When formulating and revising rules and regulations involving employees' basic rights and interests the Company strictly follows

and benefits system that effectively plays an incentive role while democratic procedures and fulfills its disclosure obligations. Relevant systems require approval from the labor union more than

protecting employees' legitimate rights and interests. It strictly two-thirds of employee representatives or more than two-thirds of the involved employees and must be publicly disclosed or

implements the overtime approval system and pays overtime notified according to law before taking effect. If rules and regulations are publicly disclosed and implemented without following

wages in full according to law ensuring employees receive the aforementioned democratic procedures employees have the right to submit written objections to the Company’s office within

reasonable compensation for their extra work. three working days after promulgation. If the number of employees submitting written objections exceeds one-fifth of all employ-

ees the system must be re-discussed and approved by the labor union or employees to have legal effect.Employee Feedback Channel

To continuously improve democratic management mechanisms and broaden

The Company implements company-wide performance assessment based on the Performance Assessment Management Rules

channels for employee opinions the Company has established an Employee

ensuring the process is fair just and transparent. Assessment content combines multiple factors such as management require-

Suggestion Box. Employees can use this channel to submit reasonable

ments business development needs job responsibilities and employee capabilities. Assessment results serve as an important

suggestions or feedback regarding company management work environ-

basis for determining performance pay job adjustments and awarding honors. At the same time the Company has established

ment system procedures culture building and other related matters.corresponding reward mechanisms giving appropriate recognition commendation and rewards to outstanding teams or individuals.Apply performance assessment results to performance bonuses salary

Employee Suggestion Box

increases outstanding employee selection training and development etc.Employee Training and Development

Performance Assessment Performance Set Goals Coaching and Evalua- Communica-

Performance Performance

tion tion Results Application The Company has established a talent cultivation and reserve system that supports the Company's sustainable development. Interms of talent cultivation the Company adheres to the principle of “relying on internal training with external introduction as asupplement.” By formulating the Training Management Measures and establishing GreatStar Academy in 2019 it has gradually

Performance Assessment Process built a professional team of internal trainers providing systematic learning and development support for all employees.At the same time the Company has established a talent development mechanism combining “361 Comprehensive PerformanceManagement” with dual career development paths (Professional - Management). It implements multi-level training programs

Case Holding Annual HR Co-creation Conference to Drive Organizational Upgrade centered on the “Star Program Moon Program Eagle Program Integration Program and Sunrise Program” focusing on reserve

cadre selection leadership enhancement business skill strengthening team integration and specialized training for fresh gradu-

ates gradually building a structured and tiered talent reserve.In the 2025 Spring Festival the Company rewarded outstanding

teams: Export Fifth Department with a trip to Northern Europe

and Export Sixth Department with an incentive trip to Australia

and New Zealand. During the National Day holiday the Compa-

ny again organized trips to Norway and Iceland. The teams not

only gained unforgettable memories but also deepened their

bonds through collaboration and exploration. This journey wasthe Company’s practical reward for the spirit of “going all outand surpassing oneself.” While broadening employees’ horizons

and allowing them to experience foreign cultures it also

transformed the Company’s recognition and care into motiva-tion for continuous striving forming a positive cycle of “effort -Outstanding Team Northern Europe Tripreward - outstanding performance.”

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

In 2025 the Company held 2 Young Eagle Training Camps 1 Elite Eagle Training Camp and 7 sessions of the GreatStar Academy

New Employee Integration Program.Focuses on enhancing the leader-

A training program for reserve ship of current management Case GreatStar Academy "North Heaven Gate Project" Integration Activity Forging High-Potential Talent Teams

management talents with "North cadres continuously empowering

Star Moon

Program Star" "Sirius" and "Morning Star" Program their capabilities in strategic vision

projects for different levels aiming and team management through In 2025 the GreatStar Academy Elite Eagle Training Camp held the “North Heaven Gate Project” large-scale

to systematically cultivate future projects such as "Full Moon" experiential integration activity with over 30 “Elite Eagle Phase III” participants. The activity themed around

"Crescent Moon" and "New Moon." interstellar adventure comprehensively trained strategic decision-making collaboration and self-breakthrough

capabilities through six team challenge projects in a practical setting. This activity not only strengthened trustand rapport among participants but also deeply embedded the fighting spirit of “Breaking the Heaven Gateguarding the sky jointly forging GreatStar’s glory” injecting stronger team cohesion and practical momentum

into the Company’s cultivation of high-potential business backbones under the “Eagle Program.”

Committed to improving the professional capabilities of business backbones conducting

Eagle

Program "Young Eagle" "Elite Eagle" and "Mighty Eagle" series of training on professional knowl-

edge skills and professional qualities strengthening practical business capabilities.Designed for new employee A special training program for

integration designing series of high-level talents and outstanding

Integration training such as "Integration Project" Sunrise management trainees from

Program and "Integration and Refining Program domestic and international sources 2025 Elite Eagle Training Camp

Project" to help newcomers quickly aiming to attract and cultivate

adapt to the team and culture. young elites with potential.Occupational Health and Work Safety

Multi-level Training Programs

The Company has built a comprehen-

sive multi-level humanistic care Welfare Guarantees Cultural Building

system effectively enhancing

employees’ sense of belonging and Statutory Benefits Internal cultural publications:

happiness through institutionalized Birthday Benefits "GreatStar Style Newspaper"

welfare guarantees and rich cultural Holiday Greetings and Gifts "Health and Wellness Weekly"

activities. In terms of welfare guaran- Family Care for Expatriate "Corporate Culture Home"

tees the Company provides compre- Employees Club Activities

hensive rights and interests support Inpatient Medical Mutual Annual Cultural Festival

for employees according to law. In Assistance Team Building Activities

addition to various insurances and Female Employee Care: Paid Festivals and Special Group

holidays stipulated by the state it also maternity leave breastfeeding Care: Including activities for

provides diversified supplementary leave mother and baby room International Women's Day

benefits. In terms of employee care parental leave etc. social events for single

and corporate culture building the Talent Apartment employees retirement condo-

Company has created a diversified Housing Allowance lences etc.interactive platform. Transportation Allowance or GreatStar Foundation

Commuter Shuttle

Humanistic Care System

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Conducting “March 8th" Women’s Day Series Care Activities Empowering “Her” Power from Multiple Dimensions

During the 2025 "March 8th" International Women's Day the Company

carried out a series of employee care activities themed "Saluting the

Shining Her" presenting holiday gifts such as oil painting green plants

to all female employees and conveying best wishes. It also conducted

seasonal wellness lectures and provided one-on-one consultation

services. The activities enriched the spiritual and cultural life of female

employees and fully reflected the Company's respect and care for

them. This was a practical initiative by the Company to create a warm

and inclusive corporate culture unite and empower "Her Power."

GreatStar Style Newspaper Pickleball Club “March 8th” Women’s Day Activity

Case Holding "Happy Growth Camp" Deepening Employee Family Care with Colorful Summer Activities

During the 2025 summer vacation multiple bases under the

Company simultaneously launched "Happy Growth Camp"

activities. They organized children to visit police stations and

fire stations to enhance safety awareness and legal concepts;

conducted intangible cultural heritage shadow puppet making

Team Building Activities Annual Cultural Festival Activities courses to experience the charm of traditional culture; set up

woodworking classes to exercise hands-on and logical

thinking skills; and held warm group birthday parties for

children with summer birthdays. Since its inception in 2012

Key Performance the "Happy Growth Camp" has greatly alleviated the summer

childcare challenges for employees' children and enhanced

employees' sense of belonging and happiness.In 2025 the GreatStar Foundation provided assistance to employees with a total aid amount of RMB . Happy Growth Camp Activities

Case Emergency Relief for Disaster-Affected Employees Conveying Corporate Warmth and Responsibility

In October 2025 in the face of severe flooding and landslides caused

by Typhoon “Matmo” the management of the Company’s Vietnam Occupational Health and Work Safety

base attached great importance and carried out a special relief

activity distributing relief funds and living supplies to 55 employees

whose families were affected by the disaster. This action not only GreatStar always adheres to the principles of “work safety prevention first comprehensive management” continuously promoting

provided timely and substantial support to employees alleviating their the construction of its occupational health and safety management system. The Company strictly follows the overall requirements

living difficulties but also profoundly reflected the Company’s core of “deepening implementation standardization long-term effectiveness” continuously improves relevant management mecha-

value of “people-oriented” and its sense of social responsibility in nisms and has successfully passed the ISO 45001 Occupational Health and Safety Management System certification. To strength-

multinational operations gathered team strength at a critical moment en the coordination of work safety the Company has established a Work Safety Committee fully responsible for the organization

and promoted a corporate culture of care and mutual assistance. leadership and accountability of work safety.Relief Activity Site

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

The Company has formulated and implemented a series of internal rules and Risk Identification

regulations such as the Work Safety Inspection System Occupational Disease

Prevention Management System Female and Minor Employee Protection Manage- GreatStar continuously advances the construction of its occupational health and safety risk identification and control system

ment System Emergency Rescue Management System and Work Safety Accident systematically identifying potential hazards in all aspects of production and operation and formulating targeted control measures.Emergency Response Plan detailing work responsibilities clarifying task assign- During the reporting period the Company carried out company-wide hazard identification work focusing on locations such as

ments and ensuring the implementation of various safety measures. Through power distribution rooms canteens laboratories quality control centers management departments garages dormitories and

continuous optimization of the management system and strict implementation of security infrastructure. The identification scope covered multiple dimensions such as personnel operations equipment operation

standards the Company is committed to creating a safe and healthy working working environment and management processes with particular focus on risk scenarios like operating without a license

environment for all employees effectively protecting their life and property safety. non-compliant operations equipment aging natural gas leakage food poisoning chemical testing working at heights and

temporary electricity use. The Company uses the LEC evaluation method for risk assessment of hazards determining control

priorities based on risk levels and clarifying responsible departments and control requirements.Occupational Health and Safety Management For identified major hazards the Company formulates and implements corresponding control measures by category. In quality

System Certification Certificate control and laboratory processes strictly implement the Laboratory Safety and Housekeeping Management Procedure standard-

izing operations such as withstand voltage testing tool use and lithium battery charging/discharging and regularly conduct

equipment inspections and certification management for personnel. In canteen management based on the Food Poisoning

Work Safety Targets 2025 Achievement Status

Emergency Response Plan and the Natural Gas Leakage Accident Emergency Response Plan strengthen procurement traceability

sanitation and disinfection ventilation and smoke exhaust and combustible gas alarm detection. For construction scenarios such

Zero major work safety accidents Achieved as working at heights and temporary electricity use implement safety protection devices and electrical safety management

systems. At the same time the Company equips positions exposed to occupational hazards with protective masks installs ventila-

tion and exhaust devices and organizes regular occupational health examinations. The Company continuously improves the

Zero major traffic accidents with company responsibility Achieved accuracy of risk identification and the effectiveness of control measures safeguarding employee health and production safety.Zero major equipment accidents with company responsibility Achieved Work Safety Emergency Management

The Company continuously advances the construction of its work safety emergency management system. Based on the Work

Zero major fire accidents with company responsibility Achieved Safety Accident Emergency Response Regulations the Measures for the Administration of Contingency Plans for Work Safety

Incidents and relevant standards combined with actual production and operation conditions it has formulated and implemented

Zero major personal injury accidents the Work Safety Accident Emergency Response Plan. This plan system includes the comprehensive emergency plan and special Achieved

emergency plans for fire and explosion hazardous chemical accidents natural disasters sudden occupational diseases food

poisoning special equipment accidents anti-terrorism and poisoning/asphyxiation in confined space operations forming an

Zero major environmental pollution accidents Achieved emergency response framework covering major risk scenarios.The Company has established a graded response emergency mechanism. Based on the development stage and hazard level of the

Zero incidence of occupational diseases among employees Achieved accident emergency response is divided into Level 3 (site team level) Level 2 (company level) and Level 1 (societal level) clarify-

ing the activation conditions and handling procedures for each level.Annual injury rate within 3% per 100 employees Achieved

The Company has established an emergency organizational structure consisting of an Emergency Leading Group an Emergency

Management Office and professional teams for rescue and disaster relief medical aid evacuation and security logistics support

100% certification rate for special operation personnel after training Achieved and information liaison ensuring smooth transmission of emergency instructions and efficient resource allocation. On-site

emergency teams are established in each area with on-site managers acting as commanders responsible for immediate interven-

100% three-level safety education rate Achieved tion and handling.

100% pass rate for safety education and training Achieved

Hazard rectification rate above 98% Achieved

Pass the three-level standard re-evaluation for enterprise safety standardization Achieved

2025 Work Safety Target Completion Status

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Daily State

Emergency Organizational Structure Health and Safety Management Measures

Leading Group Emergency State

Organizational Structure

The Company strictly implements over 30 internal regulations including the Work Safety Inspection System Occupational Safety

and Health Education System Occupational Disease Prevention Management System and Labor Protective Equipment Manage-

ment System covering key aspects such as education and training special equipment stakeholder management hazard investi-

gation and emergency rescue. The Company signs work safety target responsibility letters at each level annually clarifying safety

Emergency Emergency

Commander-in-Chief responsibilities for each department and position and incorporates target completion into performance assessment.Management Office

(Emergency State)

In terms of occupational health the Company regularly organizes occupational health examinations for employees in positions

with occupational hazard factors establishes “one person one file” health records and continuously conducts testing for dust

toxic substances and physical factors in the workplace. For female and minor employees the Company strictly implements special

labor protection regulations. At the same time the Company regularly conducts three-level safety education special operation

personnel training and company-wide safety publicity activities organizes emergency rescue drills and strengthens the risk

Information Logistics Rescue and Medical Aid Team Disaster Evacuation Fire Control Room identification and emergency response capabilities of frontline personnel. Through system improvement responsibility implemen-Liaison Team Support Group Relief Team and Alert Team tation and regular training and drills the Company continuously improves its safety management level effectively ensuring

employee health and production safety.Company Emergency Response Team Organizational Structure

Case Conducting First Aid Skills Training Strengthening Employee Life Safety Defense

In terms of emergency support the Company has a full-time emergency response team and regularly organizes drills for compre-

hensive plans special plans and on-site response plans. At the company level at least one comprehensive or special drill is In April 2025 the Company organized first aid training for

organized annually; each department organizes one on-site response plan drill every six months. The Company stocks emergency employees popularizing knowledge on cardiopulmonary

supplies and establishes a log clarifying storage locations and inspection/maintenance requirements to ensure emergency resuscitation (CPR) automated external defibrillator (AED)

resources are always available. At the same time the Company establishes liaison mechanisms with external medical institutions use and trauma first aid through a combination of theoretical

and professional rescue forces clarifying emergency contact lists and support channels to ensure smooth information flow and explanation and practical drills. The training site simulated a

resource coordination during emergency response. sudden scenario of a person collapsing. Participating

employees quickly divided tasks and collaborated orderly

Case Multi-base Joint Realistic Fire Drill completing steps such as calling for emergency help and

on-site rescue effectively testing employees’ mastery of first

aid skills and emergency response capabilities. This type of

In May 2025 GreatStar’s Qiantang Base and Haining Base respectively organized fire emergency drills covering

training helps enhance employees’ awareness of self-rescue

nearly 800 employees in total. The Qiantang Base conducted evacuation drills and fire extinguishing practice in

and mutual rescue in work and daily life supporting the

the plant canteen and dormitory areas. The Haining Base used a “surprise” method to simulate a real fire scene

construction of a safe and healthy working environment.involving three key areas: office buildings workshops and dormitories testing employees’ emergency response

and collaboration capabilities during a sudden fire. The drill covered alarm evacuation initial fire suppression and First Aid Training Site

casualty rescue helping employees master the use of fire equipment and escape skills enhancing company-wide

fire prevention awareness and self-rescue and mutual rescue capabilities.Production Base Conducting Fire Safety Drill

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Case Strengthening Work Injury Prevention Awareness Solidifying the Foundation of Work Safety Mental Health

GreatStar has established a mental health support mechanism covering employee onboarding adaptation daily communication

In October 2025 Zhongshan Jilong specially invited experts

and cultural building. The Company has established a new employee coaching plan and a symposium system to help new employ-

from the Guangdong Provincial Safety Association to

ees adapt to the work environment as quickly as possible. Organize quarterly employee satisfaction forums and special forums for

conduct a special training on work injury prevention for

employees living in dormitories to collect various opinions and suggestions raised by employees regarding their work and daily life

nearly 120 managers and employees from production

and promote the timely implementation and feedback of related issues. In addition the Company irregularly organizes cultural

engineering warehouse and other departments. The course

activities to enrich employees’ spare time and alleviate work pressure.integrates practical manufacturing scenarios focusing on

common risks such as mechanical injuries falls from height

and electric shocks. Through regulatory interpretation case

analysis and interactive Q&A it systematically explains

preventive measures and emergency response methods.Participants passed assessments to test learning effective-

ness further strengthening their awareness of safe opera- Contributing to Social Benefits

tion and proactive prevention. This training helps promotethe transformation of employees from “requiring me to beWork Injury Prevention Special Training GreatStar continuously pays attention to social welfare actively giving back to society while promoting corporate development. Insafe” to “wanting to be safe” laying the foundation for 2025 the Company continued to carry out employee care and community assistance work through the “GreatStar Foundation”

building a “people-oriented” safety culture. providing financial aid when employees or their family members encounter major difficulties. In terms of educational welfare the

Company continuously supports the development of local education assisting talent cultivation through scholarships and

donations. In the future the Company will continue to uphold the concept of giving back to society closely integrating corporate

development with social responsibility and contributing to community development and educational progress.Key Performance

Key Performance

During the reporting period the Company’ s total investment in work safety was RMB . It conduct-

ed safety drills and safety inspections.During the reporting period the Company’ s investment in social welfare was RMB .The total training hours for occupational health and work safety were hours.The Company’ s work-related injury insurance premium paid was RMB with % coverage

for employees.The incidence rate of occupational diseases among employees was % the work-related injury rate was %

and the number of work-related deaths was . Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

ESG Performance Data Sheet

Economic Performance

Business Ethics

Indicator Unit 2025 Indicator Unit 2025

Total Operating Revenue RMB 100 million 146.66 Number of Anti-commercial Bribery and Anti-corruption Training Sessions Time(s) 4

Total Assets RMB 100 million 236.25 Proportion of Directors Covered by Anti-commercial Bribery and Anti-corruption Training % 100

Proportion of Management Covered by Anti-commercial Bribery and Anti-corruption Training % 100

Proportion of Employees Covered by Anti-commercial Bribery and Anti-corruption Training % 60

Proportion of Employees Who Have Signed Integrity Commitment Letters % 100

Governance Performance Proportion of Suppliers Who Have Signed Integrity Commitment Letters % 100

Total Number of Corruption Incidents Case(s) 0

Corporate Governance Total Number of Unfair Competition Lawsuits/Administrative Penalty Incidents Case(s) 0

Total Fines for Violating Unfair Competition Laws RMB 10000 0

Indicator Unit 2025

Total Number of Board Members Person 9

Data Security and Customer Privacy

Of Which: Number of Female Directors Person 6

Of Which: Number of Independent Directors Person 3 Indicator Unit 2025

Proportion of Female Directors % 66.67 Number of Data Security Incidents Time(s) 0

Proportion of Independent Directors % 33.33 Number of Confirmed Customer Privacy Breach Incidents Time(s) 0

Number of Board of Directors Meetings Time(s) 9 Number of Data Security and Customer Privacy Protection Training Sessions Time(s) 4

Attendance Rate of Board Members % 100 Number of Emergency Drills Related to Data Security and Customer Privacy Protection Time(s) 3

Number of Audit Committee Meetings Time(s) 4

Numberof Nomination Committee Meetings Time(s) 2

Number of Remuneration and Assessment Committee Meetings Time(s) 1

Number of Strategy and Development Committee Meetings Time(s) 1

Number of General Meetings of Shareholders Held Time(s) 2

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Environmental Performance1 Greenhouse Gas Emissions

Indicator Unit 2025

Environmental ManagementTotal Greenhouse Gas (GHG）Emissions (Scope 1 + Scope 2) Tons of CO2 equivalent (tCOe) 5142.79

Scope 1 GHG Emissions Tons of CO2 equivalent (tCOe) 290.45

Indicator Unit 2025

Scope 2 GHG Emissions Tons of CO2 equivalent (tCOe) 4852.34

Number of Violations of Environmental Laws and Regulations Case(s) 0

Greenhouse Gas Emission Reduction Tons of CO2 equivalent (tCOe) 22711

Amount of Major Administrative Penalties Imposed by Ecological Environment and Other

RMB 10000 0

Relevant Authorities Due to Environmental Incidents

Exhaust Gas Emissions

Indicator Unit 2025

Total Exhaust Gas Emissions 10000 m3 3350

Energy Utilization

Particulate Matter (PM) Emissions Kilogram 34.7

Indicator Unit 2025 Nitrogen Oxides (NOx) Emissions Kilogram 0

Comprehensive Energy Consumption Tons of Coal Equivalent (TCE) 904.41 Sulfur Oxides (SOx) Emissions Kilogram 0

Direct Energy Consumption Tons of Coal Equivalent (TCE) 34.66 Volatile Organic Compounds (VOCs) Emissions Kilogram 141

Of Which: Gasoline Liter 10114

Of Which: Diesel Liter 18837 Wastewater Discharge

Indirect Energy Consumption Tons of Coal Equivalent (TCE) 869.75

Indicator Unit 2025

Of Which: Electricity MWh 7076.92

Total Wastewater Discharge 10000 m3 2.87

Total Amount of Purchased Electricity MWh 7076.92

Of Which: Total Industrial Wastewater 10000 m3 0.18

Self-consumed Renewable Electricity Generated MWh 3670.56

Of Which: Total Domestic Sewage 10000 m3 2.69

Clean Energy Consumption MWh 3670.56

Chemical Oxygen Demand (COD) Ton 4.59

Of Which: Solar MWh 3670.56

Biochemical Oxygen Demand (BOD) Ton 3.88

Of Which: Proportion of Solar % 100

Ammonia Nitrogen Content (NH3-N) Ton 0.58

Total Nitrogen Content (TN) 0.74

1 TonThe statistical scope of 2025 Energy Utilization Greenhouse Gas Emissions Exhaust Gas Emissions Wastewater Discharge Waste Discharge Water Resources Utilization is

Zhejiang GreatStar Tools Co. Ltd.Total Phosphorus Content (TP) Ton 0.095

Suspended Solids Content in Wastewater Kilogram 3502

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Waste Discharge Supplier Management

Indicator Unit 2025 Indicator Unit 2025

Total Waste Generated Ton 15.75 Signing Rate of the Letter of Commitment on Integrity for New Suppliers % 100

Of Which: Total Hazardous Waste Ton 15.75

R&D Innovation and Intellectual Property Management

Water Resources Utilization Indicator Unit 2025

R&D Investment RMB 10000 40306.45

Indicator Unit 2025

Number of Patents Held Case(s) 4359

Total Water Consumption Ton 28713

Of Which: Invention Patents Case(s) 484

Total Net Fresh Water Consumption Cubic Meter 28713

Number of Software Copyrights Held Case(s) 1

Water Withdrawal by Source: Municipal Water Supply Cubic Meter 28713

Number of Copyrights Held Case(s) 6

Number of New Patents Granted During the Year Case(s) 332

Number of Trademarks Held Case(s) 2111

Social Performance Social Contribution

Indicator Unit 2025

Product Quality and Customer Service

Amount Invested in Social Welfare RMB 10000 125.29

Indicator Unit 2025

Amount Involved in Damages from Annual Major Liability Accidents

RMB 10000 0

Related to Product and Service Safety and Quality Employee Employment

Customer Feedback Response Speed Day(s) 1

Indicator Unit 2025

Customer Feedback Response Rate % 100

Total Number of Employees Person 13632

Customer Complaints Time(s) 0

Newly Hired Employees Person 3265

Number of New

Employees

Of Which: Full-time Employees Person 3265

Female Person 5621

Number of Employees

by Gender

Male Person 8011

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Indicator Unit 2025 Indicator Unit 2025

Full-time Employees Person 13399

Number of Employees by Total Training Hours for Male Employees Hour(s) 5590.5

Employment Type

Part-time Employees Person 233 Total Training Hours for Senior Management Hour(s) 946

Employees Under 30 Years Old Person 3405 Total Number of Training Sessions Throughout the Year Time(s) 165

Number of

Employees Aged 30-50

Employees by Age Person 7980 Annual Training Expenditure RMB 10000 741.73

Employees Over 50 Years Old Person 2247 Number of Employees Trained Person 4508

Senior Management Person 255

Number of Employees by Middle Management Person 738

Job Level

Junior Management Person 985

General Staff Person 11654

R&D Department

Total Number of R&D Personnel Person 1157

Personnel

Number of Employee Departures

Employee Departures and Person 2985

Turnover Rate

Employee Turnover/Departure Rate % 21.90 Occupational Health and Safety

Employee Rights and Interests Protection Indicator Unit 2025

Total Training Hours for Occupational Health and Work Safety Hour(s) 3120

Indicator Unit 2025 Health and Safety

Training and Drills

Employee Social Insurance Coverage Rate % 100 Number of Safety Drills (Fire Toxic Gas Leakage etc.) Time(s) 7

Confirmed Incidents of Discrimination Case(s) 0 Total Work Safety Investment RMB 10000 860

Confirmed Incidents of Forced Labor Case(s) 0 Employee Work-related Injury Insurance Contribution RMB 10000

Work Safety 665

Confirmed Incidents of Child Labor Case(s) 0 Investment Employee Work-related Injury Insurance Coverage Rate % 100

Employee Work Safety Liability Insurance Contribution RMB 10000 91

Employee Training and Development Number of Work-related Fatalities Person

0

Number of Work-related Injuries (Minor Injuries and Above) Person 0

Indicator Unit 2025 Work-related

Injuries

Number of Work Days Lost Due to Work-related Injuries Day(s) 0

Total Training Hours Hour(s) 9545.5

Incidence Rate of Occupational Diseases % 0

Total Training Hours for Female Employees Hour(s) 3955

Supplier Safety Number of Supplier Work-related Injuries (Minor Injuries and Above) Person 0

Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Indicator Index Table

Self-Regulatory Guidelines No. 17 for Companies Listed on Self-Regulatory Guidelines No. 17 for Companies Listed on

Report Framework Shenzhen Stock Exchange—Sustainability Report (For Trial Report Framework Shenzhen Stock Exchange—Sustainability Report (For Trial

Implementation)1 Implementation)1

About This Report Social Development: Social Inclusivity Co-creating Value

Message from the Chairman Innovation-Driven Growth Article 42

About Us Product and Service Safety and Quality Article 47

ESG Management Sustainable Supply Chain Article 45

Compliant Governance: Governance Empowerment Consolidating the Foundation for Sustainability Employees Article 50

Corporate Governance Article 52 Social Contribution Article 40

Business Ethics Articles 55 and 56 Appendixes

Data Security and Customer Privacy Protection Article 48 Key Performance Data Sheet

Equal Treatment of Small and Medium-sized Enterprises Article 46 Indicator Index Table

Environmental Management: Low-Carbon Leadership Co-Drawing a Green Blueprint Reader's Feedback Form

Environmental Compliance Management Article 33

Pollutant Emissions and Waste Treatment Articles 30 and 31

Energy Utilization Article 35

Water Resources Utilization Article 36

Circular Economy Article 37

Addressing Climate Change Articles 22 23 and 24

1Addressing Climate Change: The Company's business activities have not caused material adverse impacts on the climate. According to the requirements of the SZSE Guidelines

the "Addressing Climate Change" issue is not material to the Company and is therefore not disclosed as a material issue.Biodiversity Protection: The Company's business activities have not caused material adverse impacts on biodiversity and endangered species. According to the requirements of

the SZSE Guidelines the "Ecosystem and Biodiversity Protection" issue is not material to the Company and is therefore not disclosed as a material issue.Rural Revitalization: During the reporting period the Company did not carry out any work related to rural revitalization.Technology Ethics: The Company is not directly involved in scientific research technology development or other activities in technology ethics-sensitive fields such as life

sciences or artificial intelligence. Therefore the basic information on the Company's compliance with technology ethics during the reporting period is not disclosed in this Report. Hangzhou GreatStar Industrial Co. Ltd. 2025 Environmental Social and Governance Report

Reader’s Feedback Form

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Hello! nance Report.Thank you for taking the valuable time to read the Company's 2025 Environmental Social and Governance Report. To provide you

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and enhance our ESG management capabilities and levels we sincerely invite you to assist us by completing the relevant

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Hangzhou GreatStar Industrial Co. Ltd.WWW.GREATSTARTOOLS.COM

地址：中国·浙江省杭州市上城区九环路号

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